ETTEPLAN OYJ
BUSINESS ID 0545456-2
CONSOLIDATED FINANCIAL STATEMENTS
1 JANUARY – 31 DECEMBER 2022
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CONTENTS
BOARD OF DIRECTORS’ REVIEW JANUARY 1 – DECEMBER 31, 2022 .......................................... 5
FORMULAS FOR THE KEY FIGURES .............................................................................................14
Breakdown of shareholdings, December 31, 2022 .......................................................................15
CONSOLIDATED FINANCIAL STATEMENTS.....................................................................................16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .................................................16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...........................................................17
CONSOLIDATED STATEMENT OF CASH FLOWS ........................................................................18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...........................................................19
Notes to the Consolidated Financial Statements .........................................................................20
2 A summary of significant accounting policies ..............................................................................20
3 Critical accounting estimates and management judgment-based decisions ..............................29
4 Management of financial risks .....................................................................................................30
5 Business combinations ................................................................................................................34
6 Segment reporting .......................................................................................................................38
Notes to Consolidated Comprehensive Income .............................................................................39
7 Revenue from contracts with customers .....................................................................................39
8 Other operating income ...............................................................................................................39
9 Non-recurring items .....................................................................................................................40
10 Materials and Services ..............................................................................................................40
11 Number of personnel and employee benefits expenses ...........................................................40
12 Other operating expenses .........................................................................................................42
13 Audit fees...................................................................................................................................42
14 Financial income .......................................................................................................................42
15 Financial expenses ....................................................................................................................43
16 Translation differences recognized in income statement ..........................................................43
17 Income taxes .............................................................................................................................43
18 Earnings per share ....................................................................................................................44
Notes to Consolidated Balance Sheet ...........................................................................................45
19 Intangible assets .......................................................................................................................45
20 Tangible assets .........................................................................................................................46
21 Financial instruments by measurement category......................................................................47
22 Impairment testing .....................................................................................................................49
23 Inventory ....................................................................................................................................50
24 Trade and other receivables .....................................................................................................50
25 Equity .........................................................................................................................................51
26 Share-based payments .............................................................................................................52
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27 Interest-bearing liabilities...........................................................................................................53
28 Other non-current liabilities .......................................................................................................53
29 Trade and other payables .........................................................................................................54
30 Deferred taxes ...........................................................................................................................54
Other notes to the Consolidated Financial Statements ..................................................................55
31 Pledges, mortgages and guarantees ........................................................................................55
32 Related-party transactions ........................................................................................................55
33 Events after the balance sheet date ..........................................................................................57
PARENT COMPANY’S FINANCIAL STATEMENTS ............................................................................58
Parent Company’s Income Statement ............................................................................................58
Parent Company’s Balance Sheet ..................................................................................................59
Parent Company’s Cash Flow Statements ....................................................................................60
NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY .................................61
Parent company’s accounting policies ...........................................................................................61
Notes to the Income Statement, parent company ..........................................................................62
1 Revenue ......................................................................................................................................62
2 Other operating income ...............................................................................................................62
3 Number of personnel and staff costs ..........................................................................................62
4 Audit fees.....................................................................................................................................62
5 Other operating expenses ...........................................................................................................63
6 Financial income .........................................................................................................................63
7 Financial expenses ......................................................................................................................63
8 Appropriations .............................................................................................................................63
9 Income taxes ...............................................................................................................................63
Notes to the Balance Sheet, parent company................................................................................64
10 Intangible assets, parent company ...........................................................................................64
11 Tangible assets, parent company .............................................................................................65
12 Investments, parent company ...................................................................................................65
13 Non-current receivables ............................................................................................................66
14 Current receivables ...................................................................................................................66
15 Cash and cash equivalents .......................................................................................................66
16 Equity .........................................................................................................................................67
17 Accumulated appropriations ......................................................................................................67
18 Non-current liabilities .................................................................................................................68
19 Current liabilities ........................................................................................................................68
20 Pledged, mortgages and guarantees ........................................................................................68
Signature of Financial Statements .................................................................................................69
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Auditor’s note .................................................................................................................................69
Auditor’s Report ..............................................................................................................................70
Independent Auditor’s Reasonable Assurance Report on Etteplan Oyj’s ESEF Financial Statements
..........................................................................................................................................75
List of accounting books and types of vouchers ............................................................................77
This document is an English translation of the Finnish financial statements. Only the Finnish version of the
report is legally binding.
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BOARD OF DIRECTORS’ REVIEW JANUARY 1 – DECEMBER 31, 2022
Operating environment
The majority of Etteplan’s customers are industrial companies with several global megatrends currently
influencing the development of their operating environment. For example, structural changes in the global
economy, urbanization, climate change and sustainability are all influencing companies, national econo-
mies and people’s lives. In addition to these megatrends, the engineering industry is influenced primarily
by three trends: digitalization, accelerating technological development and the lack of engineering re-
sources. These trends are creating a need for intelligent and energy-efficient engineering solutions in all
industrial sectors. The trend of centralizing service purchasing continues as customer demand becomes
increasingly international, presenting growth opportunities for global engineering companies. The contin-
ued trend of service outsourcing has a positive effect on the industry’s development and it supports
Etteplan’s growth. Competition for employees and specialized experts in certain areas is continuing, which
affects the development of the sector as a whole in all market areas.
The most important factor affecting Etteplan’s business is the global development of the machinery and
metal industry. The war started by Russia in Ukraine and the subsequent elevation in geopolitical tensions
have increased uncertainty globally. Inflation reduces the willingness to invest and affects demand in cer-
tain industries. At the same time, investments related to the defense industry, energy efficiency and accel-
erating the green transition are growing. Uncertainty remains high and the demand situation is character-
ized by variation. The restrictions related to the COVID-19 in China have eased, but the sharp increase in
the number of infections towards the end of the year continues to affect the market situation. Neverthe-
less, we expect the general demand situation to remain fairly good throughout 2023.
Development of demand by customer industry
The war started by Russia in Ukraine affects demand in all customer industries, but the effects of the
COVID-19 on different customer segments vary. Demand in the Forest, Pulp and Paper industry was at a
good level. Demand in the Energy industry was at a good level, as was demand in the Defense industry.
Demand in the Mining industry was at a very good level. Demand in the Lifting and Hoisting industry was
at a moderate level. Demand in the ICT industry remained good. Demand in the Automotive and Trans-
portation industry was at a good level. Demand in the Chemical industry was at a good level.
Development of demand in Etteplan’s operating countries
The geopolitical tensions caused by Russia’s invasion of Ukraine and the energy crisis have increased
uncertainty and accelerated inflation in all of our operating countries in Europe. In Finland, the revenue of
companies in the technology industry in 2022 increased by approximately 16 per cent compared to the
previous year, based on preliminary data. However, based on the order development at the end of 2022, it
is estimated that the revenue growth of companies in the technology industry will slow down or completely
stagnate during the beginning of 2023. The orders received by companies in the engineering and consult-
ing industry in October-December were 1 per cent fewer than in the corresponding period in the previous
year. The war and geopolitical tensions are also increasing uncertainty in China and affecting Western in-
vestments and international trade. In addition, the large number of COVID-19 infections affects the de-
mand situation and market activity in China.
Revenue
Etteplan’s revenue grew by 16.7 per cent and was EUR 350.2 million (2021: EUR 300.1 million). Revenue
increased by 17.7 per cent at comparable exchange rates. The organic growth of revenue was 8.6 per
cent. At comparable exchange rates, organic growth was 9.6 per cent. Revenue from key accounts grew
by 6.9 per cent.
Etteplan’s business is subject to periodic fluctuation due to the number of working days, holiday seasons
and the timing of product development and investment projects in customer companies, which mainly take
place in the spring and the latter part of the year. The revenue in the third quarter is typically lower than
that of other quarters.
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The revenue of acquired companies is not included in the organic growth of revenue for the 12 months
following the acquisition. Adina Solutions Oy increased revenue starting from August 1, 2021, and BST
Buck Systemtechnik GmbH starting from October 1, 2021. Cognitas GmbH, which was acquired at the be-
ginning of 2022, is included in Etteplan’s figures starting from January 1, 2022, Syncore Technologies AB
starting from February 1, 2022, LCA Consulting Oy starting from May 1, 2022, and DDCom starting from
June 1, 2022.
Result
Profitability for the full year was at a good level, although it declined slightly from the previous year.
Etteplan recognized significant non-recurring costs related to the preparation of the offer made for Sem-
con AB in the third quarter of the year, which had a negative effect on profitability for the full year. The in-
crease in sickness-related absences also affected profitability, particularly in the fourth quarter.
Operating profit (EBITA) grew by 12.5 per cent and was EUR 33.9 (30.1) million, or 9.7 (10.0) per cent of
revenue. Operating profit (EBIT) grew by 11.1 per cent and was EUR 28.6 (25.8) million, or 8.2 (8.6) per
cent of revenue. The combined effect of non-recurring items on operating profit (EBITA) and operating
profit (EBIT) was EUR -1.0 (-0.7) million. Non-recurring items were affected particularly by expenses re-
lated to the Semcon offer, expenses related to organizational restructuring and acquisitions, and changes
in the valuation of contingent liabilities.
The net amount of financial income and financial expenses came to EUR -6.2 (-0.9) million. The Semcon
offer had an effect of EUR -5.1 million on financial expenses.
Profit before taxes was EUR 22.4 (24.9) million. Taxes in the income statement amounted to 18.9 (19.4)
per cent of the result before taxes. The amount of taxes was EUR 4.2 (4.8) million. The profit for the finan-
cial year was EUR 18.2 (20.0) million.
Basic earnings per share were EUR 0.73 (EUR 0.80). The expenses related to the preparation of the
Semcon offer and the currency hedge had a significant negative effect on earnings per share. Equity per
share was EUR 4.25 (3.97) at the end of December. Return on capital employed (ROCE) before taxes
was 15.9 (16.0) per cent.
Cash flow and financial position
Operating cash flow was EUR 28.1 (27.1) million. Cash flow after investments was EUR 2.6 (10.8) million
due to the acquisitions made in the first half of the year. Operating cash flow accrues unevenly over the
four quarters of the year due to periodic fluctuation in business.
The Group’s cash and cash equivalents stood at EUR 19.6 (30.4) million at the end of December.
The Group’s interest-bearing liabilities amounted to EUR 90.6 (78.5) million at the end of December. The
amount of interest-bearing liabilities was affected by acquisitions made by the Group. Lease liabilities rep-
resented EUR 21.6 (22.7) million of interest-bearing liabilities.
The total of unused short-term credit facilities stood at EUR 12.6 (14.5) million.
Total assets on December 31, 2022 were EUR 281.1 (253.0) million. Goodwill on the balance sheet was
EUR 105.4 (92.4) million.
At the end of December, the equity ratio was 38.2 (39.7) per cent.
Capital expenditure
The Group’s gross investments were EUR 40.9 (30.6) million. The gross investments mainly consisted of
acquisitions, increases in lease liabilities and equipment purchases.
Personnel
The number of personnel stood at 3,951 (3,629) employees at the end of December 2022. The number of
personnel increased by 8.9 per cent compared to the end of 2021. Due to the unpredictable market situa-
tion, we slowed down recruitment in all service areas in the second half of the year.
The Group employed 3,945 (3,480) people on average in 2022.
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The number of people employed by the Group outside of Finland increased and stood at 1,963 (1,624) at
the end of December, representing 50 (47) per cent of the total number of employees.
Business review
The key objective of the company’s strategy - Increasing value for customers - is to create even higher
value for customers and support them in the industrial change. The three key elements of our strategy are
customer value, service solutions and success with people. The most important focus areas of growth are
the continuous development of service solutions, digitalization and international growth.
Etteplan’s customers are investing in digitalization and intelligent devices, which presents significant
growth opportunities for the company. In recent years, Etteplan has also invested in digitalization and soft-
ware development with the aim of expanding its service offering and competence capital in order to re-
spond to the digitalization needs of customers. At the same time, we are investing in organic growth as
well as the development of our own business and increasing its rate of digitalization.
We continue the development of technology solutions as part of our service solutions. We are strengthen-
ing our expertise in areas such as additive manufacturing, digital twin solutions, artificial intelligence and
other digital technologies. In July, we made a strategic investment in the Swedish start-up company Ek-
kono Solutions AB, a developer of machine learning and artificial intelligence technology, by acquiring a
stake of approximately 20 per cent in the company.
We have also invested in industrial digitalization and strengthened our smart industrial production offering
to help our customers digitalize their production facilities and business operations. Etteplan’s new Smart
Factory offering consists of a wide range of expertise ranging from engineering to piping, automation, in-
formation systems and technical documentation.
Etteplan’s target is to achieve revenue of EUR 500 million in 2024. We seek growth organically and by ac-
quisitions. Etteplan’s goal is to also grow internationally, provide solutions from all of the company’s ser-
vice areas in all of its market areas and increase the share of revenue accumulated outside Finland to 50
per cent. Revenue accumulated outside Finland amounted to EUR 169.1 (130.1) million, or 48 (43) per
cent of the Group’s total revenue.
The COVID-19 and thereto related restrictions and shutdown measures continued to affect demand in
China. The lifting of restrictions in the fourth quarter significantly increased sickness-related absences.
The number of hours sold in the Chinese market decreased by 5.4 per cent in 2022.
Etteplan’s target is to increase the share of revenue represented by Managed Services to 75 per cent. The
share of revenue represented by Managed Services stood at 66 (63) per cent. The growth in the share of
Managed Services enhances Etteplan’s capacity management and improves profitability. Etteplan’s oper-
ating profit (EBITA) target is 10 per cent of revenue.
Acquisitions
Etteplan issued a public offer to the shareholders of Semcon AB on August 23, 2022. The acceptance pe-
riod stipulated by the offer began on September 1, 2022, and ended on October 6, 2022. The conditions
of Etteplan’s offer were not fulfilled due to a competing purchase offer. Etteplan did not raise its offer, and
the offer consequently lapsed on October 6, 2022. Etteplan issued several stock exchange releases re-
lated to the offer between August 23 and October 7, 2022. The releases and more details on the offer are
available on Etteplan’s website at www.etteplan.com.
Etteplan continued its expansion in the Netherlands in June 2022 by acquiring DDCom. The acquisition
strengthened Etteplan’s capabilities in 3D content-based animation and visualization services related to
technical documentation. DDCom is located in the Eindhoven area and employs approximately 15 tech-
nical documentation specialists. Its customers operate in automotive, high tech, med-tech and product
manufacturing industries and include high-profile companies such as DAF Trucks, ASML, VDL, Philips &
Shimano.
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Etteplan strengthened its position as an expert in sustainable development and acquired LCA Consulting
Oy, a provider of high-quality expert services, in May 2022. Founded in 2013 as a spin-off at LUT Univer-
sity, LCA Consulting focuses on life cycle assessment of companies, products and production, carbon
footprinting and expert training. LCA Consulting, based in Lappeenranta, Finland, employs 11 experts and
its customer base consists especially of customers in industrial production and manufacturing, construc-
tion industry and public sector.
Etteplan strengthened its position in Sweden and acquired Syncore Technologies AB, a technology ser-
vices company focusing on advanced embedded systems, in February 2022. Syncore employs 46 embed-
ded systems experts in Linköping, Sweden. The acquisition involved a directed share issue to the owners
of the acquired company. More information is provided under Shares.
In January 2022, Etteplan acquired Cognitas GmbH, a German technical information life cycle manage-
ment company, from Canon Deutschland GmbH. With the acquisition, Etteplan became a market-leading
company in technical documentation in Germany and reinforces its leading position in Europe. Cognitas
employs 200 professionals in consulting and technical information authoring and management.
Governance
General meeting
Etteplan Oyj’s Annual General Meeting was held on April 6, 2022. The Annual General Meeting approved
the financial statements and discharged the members of the Board of Directors and the President and
CEO from liability for the financial year 2021.
The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, to pay a
dividend of EUR 0.40 per share for the financial year 2021 and to leave the remaining funds in unre-
stricted equity. The dividend decided on by the Annual General Meeting was paid to the shareholders reg-
istered on the record date in the shareholders’ register maintained by Euroclear Finland Ltd. The record
date for the dividend payout was April 8, 2022, and the date of dividend payout was April 19, 2022.
In accordance with the proposal of Etteplan’s Nomination and Remuneration Committee, the Annual Gen-
eral Meeting resolved that the Board of Directors shall consist of five members. In accordance with the
proposal of the Nomination and Remuneration Committee, the Annual General Meeting resolved on the
annual remuneration of the members of the Board of Directors, the Chairman of the Board and the mem-
bers of the Nomination and Remuneration Committee and the Audit Committee.
In accordance with the proposal of the Nomination and Remuneration Committee of the Board of Direc-
tors, the Annual General Meeting re-elected Matti Huttunen, Robert Ingman, Päivi Lindqvist, Leena Saari-
nen and Mikko Tepponen as members of the Board of Directors. KPMG Oy Ab, Authorized Public Ac-
countants, with Authorized Public Accountant Kim Järvi as the main responsible auditor, was elected as
the Company’s auditor.
In its organization meeting subsequent to the Annual General Meeting, the Board of Directors of Etteplan
Oyj elected Robert Ingman as Chairman of the Board of Directors. Matti Huttunen was elected the Chair-
man and Robert Ingman and Leena Saarinen as members of the Nomination and Remuneration Commit-
tee of Etteplan Oyj. Päivi Lindqvist was elected as the Chairman and Leena Saarinen and Mikko Teppo-
nen as members of the Audit Committee of Etteplan Oyj.
Board authorizations
The Annual General Meeting held on April 6, 2022 decided to authorize the Board of Directors to resolve
on the repurchase of the company’s own shares in one or more tranches using the company’s unrestricted
equity. A maximum of 2,000,000 shares in the company may be repurchased. The company may deviate
from the obligation to repurchase shares in proportion to the shareholders’ current holdings, i.e. the Board
has the right to decide on a directed repurchase of the company’s own shares.
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The authorization includes the right for the Board to resolve on the repurchase of the Company’s own
shares through a tender offer made to all shareholders on equal terms and conditions and at the price de-
termined by the Board, or in public trading organized by the Nasdaq Helsinki Ltd at the market price valid
at any given time, so that the company’s total holding of own shares does not exceed ten (10) per cent of
all the shares in the company. The minimum price for the shares to be repurchased is the lowest market
price quoted for the shares in the company in public trading and, correspondingly, the maximum price is
the highest market price quoted for the shares in the company in public trading during the validity of the
authorization.
Should the shares in the company be repurchased in public trading, such shares will not be purchased in
proportion to the shareholders’ current holdings. In that case, there must be a weighty financial reason for
the company to repurchase its own shares. The shares may be repurchased in order to be used as con-
sideration in potential acquisitions or in other structural arrangements. The shares may also be used for
carrying out the company's incentive schemes for its personnel. The repurchased shares may be retained
by the company, invalidated or transferred further. The repurchase of the company’s own shares will re-
duce the non-restricted equity of the company.
The authorization is valid for 18 months from the date of the resolution of the Annual General Meeting
starting on April 6, 2022, and ending on October 5, 2023.
The Annual General Meeting 2021 decided to authorize the Board of Directors to resolve on the issuance
of a maximum of 2,500,000 shares through issuance of shares, option rights or other special rights enti-
tling to shares under Chapter 10, Section 1 of the Finnish Companies Act in one or more issues. The au-
thorization includes the right to decide to issue either new shares or shares held by the company.
The authorization includes the right to deviate from the existing shareholders’ pre-emptive subscription
right as set forth in Chapter 9, Article 3 of the Companies Act. Therefore, the Board of Directors has the
right to direct the share issue, or issuance of the option rights or other special rights conferring entitlement
to shares. The authorization also includes the right to decide on all the terms of share issue, option rights
or other special rights conferring entitlement to shares. The authorization therefore includes the right to
determine share subscription prices, persons entitled to subscribe the shares and other terms and condi-
tions applicable to the subscription. In order to deviate from the shareholders’ pre-emptive subscription
right, the company must have a weighty financial reason such as financing of a company acquisition, other
arrangement in connection with the development of the company’s business or equity or an incentive
scheme to the personnel. In connection with the share issuance, the Board of Directors is entitled to de-
cide that the shares may be subscribed against contribution in kind or otherwise under special terms and
conditions. The authorization includes the right to determine whether the subscription price will be entered
into the share capital or into the unrestricted equity fund.
The authorization is valid for two (2) years from the date of the resolution of the Annual General Meeting,
starting on April 8, 2021, and ending on April 7, 2023.
Shares
Etteplan’s shares are listed in Nasdaq Helsinki Ltd’s Mid Cap market capitalization group in the Industrials
sector under the ETTE ticker. The company has one series of shares. All shares confer an equal right to a
dividend and the company’s funds. The company’s share capital on December 31, 2022, was EUR
5,000,000.00 and the total number of shares was 25,200,793.
On February 2, 2022, Etteplan issued a stock exchange release announcing the acquisition of Syncore
Technologies AB. As part of the financing of the transaction, Etteplan Oyj’s Board of Directors, at its meet-
ing held on February 1, 2022, made a conditional decision on a share issue based on the share issue au-
thorization given to the Board of Directors by the Annual General Meeting on April 8, 2021. In accordance
with the terms of the transaction, the purchase price was paid through a share issue to the sellers and
cash. The contract of sale, which was a condition of the decision, was signed on February 2, 2022, and at
the same time, the sellers subscribed for 117,485 new Etteplan shares as a part payment for the purchase
amount. The subscription price per share paid for the shares was EUR 16.42. The new shares carry the
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right to dividends starting from the financial year 2022. The new shares subscribed for in the directed
share issue were registered in the Trade Register on April 19, 2022, and in the book-entry system main-
tained by Euroclear Finland Oy on April 29, 2022. The shares were listed for trading on Nasdaq Helsinki
on May 3, 2022. However, trading in the new shares will only be possible after three years, when the
transfer restriction agreed upon in connection with the transaction has expired.
Trading in shares
The number of Etteplan Oyj shares traded during 2022 was 517,686 (2021: 1,539,757), for a total value of
EUR 8.0 (25.15) million. The share price low was EUR 11.65, the high EUR 18.75, the average EUR
15.46 and the closing price EUR 14.60. Market capitalization on December 31, 2022, was EUR 365.61
(421.22) million. On December 31, 2022, Etteplan had 3,696 (3,604) shareholders.
Own shares
Etteplan did not purchase any of its own shares in January–December 2022. The company held 159,046
of its own shares at the end of December 2022 (December 31, 2021: 159,046), which corresponded to
0.63 per cent of all shares and voting rights.
Flaggings
Etteplan Oyj received no flagging notices in 2022.
Etteplan Oyj’s incentive plan for key personnel 2020–2022
On February 5, 2020, Etteplan’s Board of Directors resolved to establish a new share-based incentive
plan for the Group’s key personnel. The aim of the plan is to combine the objectives of the shareholders
and the key personnel in order to increase the value of the company, to commit the key personnel to the
company, and to offer them a competitive reward plan based on holding the company shares.
The plan includes one earning period which comprises calendar years 2020–2022. The earning period co-
vers the same years as Etteplan’s strategy update published in March 2019. The plan is in line with
Etteplan’s strategy and supports the achievement of the company’s financial targets.
The earning criteria are Etteplan Group’s revenue increase and the development of Total Shareholder Re-
turn (TSR). The potential reward will be paid partly in the company's shares and partly in cash after the end
of the earning period. The proportion to be paid in cash is intended to cover taxes and tax-related costs
arising from the reward to the key personnel.
Approximately 25 people belong to the plan, including the Management Group of Etteplan. The rewards to
be paid on the basis of the plan will correspond to the value of an approximate maximum total of 390,000
Etteplan Oyj shares (including also the proportion to be paid in cash). The shares to be paid out as potential
rewards will be transferred from the shares held by the company or shares acquired from the market, and
therefore the incentive plan will have no diluting effect on the share value.
Events after the review period
No material events have occurred in the group after the balance sheet date that would affect the financial
statements.
Operating risks and uncertainty factors
Etteplan’s financial results are exposed to a number of strategic, operational and financial risks. The uncer-
tainties caused by the general economic development continue to constitute risks for Etteplan’s business.
The possibility of changes in customers’ business operations is a significant risk to Etteplan’s operations.
The company’s operations are based on skilled staff. The availability of competent professionals is an im-
portant factor for ensuring profitable growth and operations. The increased difficulties in recruiting profes-
sional staff, particularly in certain expert disciplines, continues to present a business risk.
COVID-19 continues to have an impact on Etteplan’s business, and the associated sickness-related ab-
sences have a negative impact on the company’s development. The war started by Russia in Ukraine in-
creases uncertainty in the markets, drives inflation and interest rates higher and has a negative impact on
customers’ operations and supply chains. Rising costs and interest rates have an impact on Etteplan’s
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business and financial position. The unstable geopolitical situation makes the future more difficult to pre-
dict.
Etteplan assesses business risks annually and actively monitors their development during the year. The
focus of the assessment is particularly on monitoring changes in already identified risks, identifying new
business risks and developing proactive risk management. The results of the assessment are presented in
Etteplan’s Corporate Governance Statement.
Market outlook 2023
The most important factor affecting Etteplan’s business is the global development of the machinery and
metal industry. The war started by Russia in Ukraine and the subsequent elevation in geopolitical tensions
have increased uncertainty globally. Inflation reduces the willingness to invest and affects demand in cer-
tain industries. At the same time, investments related to the defense industry, energy efficiency and accel-
erating the green transition are growing. Uncertainty remains high and the demand situation is character-
ized by variation. The restrictions related to the COVID-19 in China have eased, but the sharp increase in
the number of infections towards the end of the year continues to affect the market situation. Neverthe-
less, we expect the general demand situation to remain fairly good throughout 2023.
Financial guidance 2023
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range and issues the fol-
lowing estimate:
Revenue in 2023 is estimated to be 360–390 (2022: 350.2) million, and
operating profit (EBIT) in 2023 is estimated to be EUR 28-33 (2022: 28.6) million.
The Board’s proposal for distribution of 2022 profits
The parent company’s distributable shareholders’ equity according to the balance sheet on December 31,
2022, is EUR 59,076,673.28. The Board of Directors will propose to the Annual General Meeting, which
will convene on April 5, 2023, that on the dividend payout date a dividend of EUR 0.36 per share be paid
on the company’s externally owned shares, for a total amount of EUR 9,072,285.48 at most, and that the
remaining profit be transferred to retained earnings.
Annual General Meeting
Etteplan Oyj’s Annual General Meeting will be held on Wednesday, April 5, 2023. The summons to the
AGM is published as a separate release.
Corporate Governance statement
Etteplan publishes the Corporate Governance Statement for 2022 separately from the Board of Directors’
review. The statement is available on the Company’s website www.etteplan.com.
Statement of non-financial information
Etteplan publishes the Statement of non-financial information for 2022 separately from the Board of Direc-
tors’ review. The statement is available on the Company’s website www.etteplan.com.
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KEY FIGURES FOR FINANCIAL TRENDS
KEY FIGURES FOR SHARES
EUR 1,000, financial period Jan 1-Dec 31 2022 2021 2020
Revenue 350,170 300,111 259,702
Change in revenue, % 16.7 15.6 -1.4
Operating profit (EBITA)
33,915 30,139 26,172
% of revenue 9.7 10.0 10.1
Operating profit (EBIT)
28,622 25,754 22,380
% of revenue
8.2 8.6 8.6
Profit before taxes
% of revenue 6.4 8.3 8.1
Profit for the financial year 18,151 20,044 17,077
Return on equity, %
17.7 21.6 20.8
ROCE, %
15.9 16.0 16.0
Equity ratio, %
38.2 39.7 40.5
Gross investments
40,940 30,582 29,697
% of revenue 11.7 10.2 11.4
Net gearing, %
66.8 48.6 46.6
Personnel, average 3,945 3,480 3,320
Personnel at year end 3,951 3,629 3,267
Employee benefits expenses
227,823 197,596 177,301
Financial period Jan 1-Dec 31 2022 2021 2020
Earnings per share, EUR
0.73 0.80 0.69
Equity per share, EUR
4.25 3.97 3.50
0.36 0.40 0.34
Dividend per earnings per share, % 49 50 49
Effective dividend return, % 2.5 2.4 2.6
P/E-ratio, EUR 20.0 21.1 18.8
Share price, EUR:
lowest 11.65 12.95 6.50
highest 18.75 19.45 13.30
average for the year 15.46 16.33 9.46
closing 14.60 16.90 12.95
Market capitalization, EUR 1,000 365,610 421,220 322,251
Number of shares traded, 1,000 pcs 518 1,540 1,564
Shares traded, % 2 6 6
25,032 24,904 24,862
25,050 24,924 24,884
Adjusted average number of externally owned shares
during the financial year, 1,000 pcs
Adjusted number of externally owned shares at year
end, 1,000 pcs
Dividend per share, EUR (Proposal by the Board of
Directors)
13
Non-IFRS key figures
Etteplan presents non-IFRS key figures to supplement its consolidated financial statements which are pre-
pared in accordance with IFRS. These key figures are designed to measure growth and provide insight
into the company’s underlying operational performance. This section describes the most important non-
IFRS key figures used by the Group. Formulas for key figures (IFRS and Non-IFRS) are presented at the
end of this release.
Operating profit (EBITA) and EBITA, %
Operating profit (EBITA) is presented, because it reflects the Group’s operational performance better than
Operating profit (EBIT). Operating profit (EBITA) does not include amortization of fair value adjustments at
acquisitions. EBITA, % presents Operating profit (EBITA) as a percentage share of revenue. The table be-
low shows a reconciliation between Operating profit (EBITA) and Operating profit (EBIT).
Organic/un-organic growth and growth in comparable currencies
Organic (revenue) growth is presented in addition to total revenue growth, because it improves the com-
parability of revenue growth between periods by presenting the revenue growth without the effects of the
last 12 months' acquisitions. Organic growth is calculated by comparing revenue between comparison pe-
riods excluding revenue from acquisitions that have taken place in the past 12 months. The revenue
growth created by the last 12 months' acquisitions is presented as un-organic growth. Revenue growth in
comparable currencies is presented, because it improves the comparability of revenue growth between
periods by presenting the revenue growth with comparable exchange rates. For the calculation of growth
in comparable currencies, revenue for the current period is calculated by using the comparable period’s
exchange rates. The figure is presented for Group revenue and organic growth.
The share of revenue represented by Managed Services
Etteplan measures the share of revenue represented by Managed Services (MSI Index). Managed Ser-
vices are service solutions, such as projects and continuous services, where the customer pays for results
instead of resources. The share of revenue represented by Managed Services is presented, because it
describes Etteplan's strategy implementation and explains, in part, the changes in profitability.
Etteplan Oyj
Board of Directors
EUR 1,000 2022 2021
Operating profit (EBIT) 28,622 25,754
Amortization on fair value adjustments at acquisitions 5,293 4,385
Operating profit (EBITA) 33,915 30,139
14
FORMULAS FOR THE KEY FIGURES
IFRS KEY FIGURES
NON-IFRS KEY FIGURES
Basic earnings per share =
(Profit for the review period attributable to equity holders of the parent company) x 100
Issue adjusted average number of shares during the review period
Diluted earnings per share =
(Profit for the review period attributable to equity holders of the parent company
adjusted with dilutive effect) x 100
Issue adjusted average number of shares during the review period adjusted with
dilutive effect
Operating profit (EBITA) =
Operating profit (EBIT) + amortization on fair value adjustments in acquisitions
Organic growth =
(Revenue current year - Revenue comparison year - Revenue from acquirees
current year) x 100
Revenue comparison year
Revenue growth from key accounts =
(Revenue from key accounts current year - Revenue from key accounts
comparison year) x 100
Revenue from key accounts comparison year
The share of revenue represented by
Managed Services =
Revenue from Managed Services x 100
Revenue
Return on equity (ROE), % = Profit for the financial year x 100
(Equity, total) average
Return on capital employed (ROCE), before
taxes, % =
(Profit before taxes + Financial expenses) x 100
(Total equity and liabilities - non-interest bearing liabilities) average
Equity ratio, % = Equity, total x 100
Total equity and liabilities - Advances received
Gross investments =
Total investments made to non-current assets including acquisitions and
capitalized development costs
Net gearing, % = (Interest-bearing liabilities - Cash and cash equivalents) x 100
Equity, total
Equity per share = Equity, total
Adjusted number of shares at the end of the year
Market capitalization =
Number of outstanding shares at the end of the year x last traded share price of
the year
Dividend per share = Dividend for the financial year
Adjusted number of shares during the financial year
Dividend as percentage of earnings = Dividend per share x 100
Earnings per share
Effective dividend yield, % = Dividend per share x 100
Adjusted last traded share price
Price/earnings ratio (P/E) = Adjusted last traded share price
Earnings per share
Share price trend
For each financial year, the adjusted low and high actual traded prices are given
as well as the average price for the financial year adjusted for share issues.
Average price = Total turnover of shares in euros
Number of shares traded during the financial year
Trend in share turnover, in volume and
percentage figures
The trend in turnover of shares is given as the number of shares traded during
the financial year and as the percentage of traded shares relative to issued
stock during the year.
15
Breakdown of shareholdings, December 31, 2022
Breakdown of shareholdings by size class
Breakdown of shareholdings by owner group
Major shareholders
Number of shares, pcs
Number of
shareholders
Proportion of
shareholders, %
Number of
shares
Proportion of
shares and votes, %
1-100 1,845 49.92 67,502 0.27
101-1,000 1,495 40.45 560,008 2.22
1,001-10,000 313 8.47 856,550 3.40
10,001-100,000 30 0.81 779,145 3.09
100,001-1,000,000 11 0.30 3,747,146 14.87
> 1,000,000 2 0.05 19,190,442 76.15
Total 3,696 100.00 25,200,793 100.00
Name of the sector
Number of
shareholders
Number of
shares
Proportion of shares
and votes, %
National economy total (domestic sector)
Companies 119 17,223,080 68.34
Financial and insurance institutions 18 2,894,284 11.48
Public sector entities 5 1,487,279 5.90
Households 3,520 2,473,567 9.82
Non-profit institutions 12 19,375 0.08
Foreigners 22 23,190 0.09
Nominee-registered shares 1,080,018 4.29
Total 3,696 25,200,793 100.00
Name
Number of shares
Proportion of shares
and votes, %
Ingman Group Oy Ab 16,661,384 66.11
Oy Fincorp Ab 2,529,058 10.04
Varma Mutual Pension Insurance Company
985,593 3.91
Tuori Klaus Tapani 309,134 1.23
Tuori Aino Mirjami 308,275 1.22
Ilmarinen Mutual Pension Insurance Company
288,311 1.14
Elo Mutual Pension Insurance Company
209,662 0.83
VAS Invest Oy 194,035 0.77
Taaleritehdas Mikro Markka Fund 164,048 0.65
Etteplan Oyj 159,046 0.63
OP-Finland Small Firms Fund 111,436 0.44
Näkki Juha Antti Ilmari 110,848 0.44
Mäkelä Esa Tapio 58,818 0.23
Ingman Robert Carl 55,000 0.22
Kylänpää Osmo Olavi 53,200 0.21
Säästöpankki Small Cap Mutual Fund
49,241 0.20
Kurra Jorma 41,841 0.17
Burmeister Dorrit Elisabeth 32,313 0.13
Hemholmen Oy Ab 31,200 0.12
Kempe Anna Carita 30,000 0.12
Other shareholders 1,738,332 6.90
Nominee-registrated shares 1,080,018 4.29
Total 25,200,793 100.00
16
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000, financial period Jan 1-Dec 31
Note
2022
2021
Revenue
7
350,170
300,111
Other operating income
8
2,826
1,289
Materials and services
10
-40,395
-31,685
Employee benefits expenses
11
-227,823
-197 596
Other operating expenses
12
-36,140
-28,527
Depreciation and amortization
19, 20
-20,018
-17,839
Operating profit (EBIT)
28,622
8.2
%
25,754
8.6
%
Financial income
14
1,044
593
Financial expenses
15
-7,280
-1,480
Profit before taxes
22,386
24,867
Income taxes
17
-4,235
-4,823
Profit for the financial year
18,151
20,044
Other comprehensive income, that may be reclassified to profit or
loss
Currency translation differences
-4,229
-589
Other comprehensive income, that will not be reclassified to profit
or loss
Change in fair value of equity investments at fair value through
other comprehensive income
-31
32
Remeasurement of defined benefit plan
11
1,359
0
Other comprehensive income for the year, net of tax
17
-2,900
-557
Total comprehensive income for the year
15,251
19,487
Profit for the financial year attributable to
Equity holders of the parent company
18,151
20,044
Total comprehensive income attributable to
Equity holders of the parent company
15,251
19,487
Earnings per share calculated from the profit attributable to equity
holders of the parent company
Basic earnings per share, EUR
18
0.73
0.80
Diluted earnings per share, EUR
18
0.73
0.80
The notes are an integral part of the Financial Statements.
17
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1,000, Dec 31
Note
2022
2021
ASSETS
Non-current assets
Goodwill
22
105,385
92,380
Other intangible assets
19
32,745
28,807
Tangible assets
20
24,808
24,759
Investments at fair value through other comprehensive
income
21
2,414
418
Other non-current receivables
21
1,016
54
Deferred tax assets
30
622
731
Non-current assets, total
166,990
147,150
Current assets
Inventory
23
635
376
Work in progress
7
30,181
26,810
Trade and other receivables
24
62,405
47,988
Current tax assets
1,364
273
Cash and cash equivalents
19,564
30,356
Current assets, total
114,149
105,803
TOTAL ASSETS
281,138
252,953
EQUITY AND LIABILITIES
Equity
Share capital
25
5,000
5,000
Share premium account
25
6,701
6,701
Unrestricted equity fund
25
23,966
22,037
Own shares
25
-1,059
-1,245
Cumulative translation adjustment
25
-7,702
-3,473
Other reserves
25
103
133
Retained earnings
25
79,302
69,761
Equity, total
106,311
98,914
Non-current liabilities
Deferred tax liabilities
30
9,758
7,408
Loans from financial institutions
27
47,852
30,350
Lease liabilities
27
8,478
8,777
Defined benefit pension liability
11
4,897
0
Other non-current liabilities
28
33
827
Non-current liabilities, total
71,018
47,362
Current liabilities
Loans from financial institutions
27
21,139
25,453
Lease liabilities
27
13,114
13,894
Advances received
7
2,856
3,891
Trade and other payables
29
63,532
61,673
Current income tax liabilities
3,168
1,766
Current liabilities, total
103,809
106,677
Liabilities, total
174,828
154,039
TOTAL EQUITY AND LIABILITIES
281,138
252,953
The notes are an integral part of the Financial Statements.
18
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1,000, financial period Jan 1-Dec 31
Note
2022
2021
OPERATING CASH FLOW
Cash receipts from customers
341,201
287,564
Operating expenses paid
-306,220
-253,056
Operating cash flow before financial items and
taxes
34,981
34,508
Interests and other payments for financial expenses
15
-1,721
-1,289
Interest received
14
113
80
Income taxes paid
17
-5,277
-6,205
Operating cash flow (A)
28,095
27,093
INVESTING CASH FLOW
Purchase of tangible and intangible assets
19, 20
-1,711
-2,157
Acquisition of subsidiaries, net of cash acquired
5
-20,871
-14,255
Purchase of investments
21
-2,033
0
Proceeds from sale of tangible and intangible assets
52
17
Loans granted
21
-963
0
Proceeds from repayment of loans
0
73
Investing cash flow (B)
-25,526
-16,321
Cash flow after investments (A+B)
2,570
10,772
FINANCING CASH FLOW
Proceeds from directed share issue
0
1,936
Purchase of own shares
0
-1,382
Proceeds from current loans
27
13,144
6,941
Repayments of current loans*
27
-32,534
-30,060
Proceeds from non-current loans
27
27,999
37,503
Repayments of non-current loans
27
-16
-6
Payment of lease liabilities
20
-12,657
-11,478
Dividend paid
25
-9,970
-8,461
Financing cash flow (C)
-14,034
-5,007
Variation in cash (A+B+C) increase (+) / decrease (-)
-11,464
5,765
Assets at the beginning of the financial period
30,356
24,407
Exchange gains or losses on cash and cash equiva-
lents
672
184
Assets at the end of the financial period
19,564
30,356
*In the fiscal year of 2022, the item also includes a realized currency hedging loss of EUR 4.9 million.
The notes are an integral part of the Financial Statements.
The total cash outflow for leases is presented in note 20.
Non-monetary changes in interest bearing liabilities is presented in note 4.1.3.
19
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR 1,000
Share
capital
Share
premium
account
Unrestricted
equity fund
Other
reserves
Own
shares
Cumulative
translation
adjustment
Retained
earnings
Total
Equity Jan 1, 2021
5,000
6,701
20,101
101
-124
-2,884
58,178
87,074
Comprehensive income for the year
Profit for the financial year
0
0
0
0
0
0
20,044
20,044
Other comprehensive income
for the year
0
Change in fair value of equity in-
vestments at fair value through
other comprehensive income
0
0
0
32
0
0
0
32
Cumulative translation adjustment
0
0
0
0
0
-589
0
-589
Other comprehensive income
for the year, net of tax
0
0
0
32
0
-589
0
-557
Total comprehensive income for
the year
0
0
0
32
0
-589
20,044
19,487
Transactions with owners
Dividends
0
0
0
0
0
0
-8,461
-8,461
Directed share issue
0
0
1,936
0
0
0
0
1,936
Purchase of own shares
0
0
0
0
-1,382
0
0
-1,382
Share-based incentive plan
0
0
0
0
260
0
0
260
Transactions with owners, total
0
0
1,936
0
-1,122
0
-8,461
-7,647
Equity Dec 31, 2021
5,000
6,701
22,037
133
-1,245
-3,473
69,761
98,914
EUR 1,000
Share
capital
Share
premium
account
Unrestricted
equity fund
Other re-
serves
Own
shares
Cumulative
translation
adjustment
Retained
earnings
Total
Equity Jan 1, 2022
5,000
6,701
22,037
133
-1,245
-3,473
69,761
98,914
Comprehensive income for the
year
Profit for the financial year
0
0
0
0
0
0
18,151
18,151
Other comprehensive income
for the year
Change in fair value of equity in-
vestments at fair value through
other comprehensive income
0
0
0
-30
0
0
-1
-31
Cumulative translation adjustment
0
0
0
0
0
-4,229
0
-4,229
Remeasurement of defined bene-
fit plan
0
0
0
0
0
0
1,359
1,359
Other comprehensive income
for the year, net of tax
0
0
0
-30
0
-4,229
1,358
-2,900
Total comprehensive income
for the year
0
0
0
-30
0
-4 229
19,510
15,251
Transactions with owners
Dividends
0
0
0
0
0
0
-9,970
-9,970
Directed share issue
0
0
1,929
0
0
0
0
1,929
Purchase of own shares
0
0
0
0
0
0
0
0
Share-based incentive plan
0
0
0
0
186
0
0
186
Transactions with owners, total
0
0
1,929
0
186
0
-9,970
-7,855
Equity Dec 31, 2022
5,000
6,701
23,966
103
-1,059
-7,702
79,302
106,311
The notes are an integral part of the Financial Statements.
20
Notes to the Consolidated Financial Statements
1 General information
The Parent Company of Etteplan Group is Etteplan Oyj. Etteplan Oyj is a Finnish public limited company
established under Finnish law. The Company is domiciled in Espoo, Finland and its registered office is lo-
cated at Tekniikantie 4, 02150 Espoo, Finland. The company’s principal place of business is also located
at Tekniikantie 4, 02150 Espoo. Etteplan’s shares are listed on Nasdaq Helsinki Ltd’s Medium Cap market
capitalization group in the Industrials sector under the ETTE ticker.
Etteplan provides solutions for software and embedded solutions, industrial equipment and plant engineer-
ing and technical documentation solutions to the world’s leading companies in the manufacturing industry.
Our services are geared to improve the competitiveness of our customers’ products, services and engi-
neering processes throughout the product life cycle. The results of Etteplan’s innovative engineering can
be seen in numerous industrial solutions and everyday products.
A copy of the Consolidated Financial Statements can be obtained from the Company’s website
www.etteplan.com or from the office of the Group’s Parent Company at the address Askonkatu 9 E, 15100
Lahti, Finland.
The Etteplan Oyj Board of Directors approved these Financial Statements for publication at its meeting on
February 16, 2023.
According to the Finnish Limited Liability Companies Act, the shareholders have the opportunity to ap-
prove or reject the Financial Statements at the Annual General Meeting held after the publication. Further-
more, the Annual General Meeting can decide on the modification of the Financial Statements.
2 A summary of significant accounting policies
The principal accounting policies applied in the preparation of these Consolidated Financial Statements
are set out in this section. These policies have been consistently applied to all the years presented, unless
stated otherwise.
2.1 Basis for preparation
The Consolidated Financial Statements have been prepared in accordance with International Financial
Reporting Standards (IFRS). They have been prepared in accordance with IAS and IFRS standards and
SIC and IFRIC interpretations approved for implementation in EU directive N:o 1606/2002 at December
31, 2022. The notes to the Financial Statements are also prepared in accordance with the Finnish ac-
counting and company regulation, which complements the IFRS requirements. The Consolidated Finan-
cial Statements have been prepared under the historical cost convention, except for certain financial as-
sets and financial liabilities, which are recognized at fair value.
The preparation of the Financial Statements in conformity with IFRS requires the use of certain critical ac-
counting estimates. It also requires the management to exercise its judgment in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas
where assumptions and estimates are significant to the consolidated financial statements are disclosed in
note 3.
Figures in the Financial Statements are presented in thousands of euros and are therefore rounded.
2.1.1 Changes in accounting policy and disclosures
New and amended standards adopted by the Group
The new standards, amendments and interpretations effective for the financial year beginning January 1,
2022, did not have a significant effect on the Consolidated Financial Statements of the Group.
21
Forthcoming requirements
The new standards, amendments and interpretations issued, but effective later than for the financial year
beginning January 1, 2023, are not expected to have a significant effect on the Consolidated Financial
Statements of the Group.
2.2 Consolidation
Subsidiaries are all such entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the abil-
ity to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They are deconsolidated from the date that control
ceases.
The Group applies the acquisition method to account for business combinations. The consideration trans-
ferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to
the former owners of the acquiree and the equity interests issued by the Group. Identifiable assets ac-
quired and liabilities and contingent liabilities assumed in a business combination are measured initially at
their fair values at the acquisition date. If the business combination is achieved in stages, the acquisition
date fair value of the Group’s previously held equity interest in the acquiree is remeasured to fair value at
the acquisition date through profit or loss. Any contingent consideration to be transferred by the Group is
recognized at fair value at the acquisition date. A contingent consideration classified as liability is revalued
to fair value at the end of each financial year and the resulting profit or loss is recognized in the income
statement. Goodwill is initially measured as the excess of the aggregate of the consideration transferred
and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities as-
sumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the
difference is recognized in profit or loss.
Inter-company transactions, balances, income and expenses on transactions between the Group compa-
nies are eliminated. Profits and losses resulting from inter-company transactions that are recognized in
assets are also eliminated. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
2.3 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The Management Group is identified as the chief operating decision-maker.
The chief operating decision-maker assesses the financial performance and position of the Group, and
makes strategic decisions. The financial information, which the chief operating decision-maker uses as a
basis for decision making, does not differ substantially from the information presented in the Consolidated
Statement of Comprehensive Income and Statement of Financial Position.
2.4 Foreign currency translation
Functional and presentation currency
Items included in the Financial Statements of each of the Group’s entities are measured using the cur-
rency of the primary economic environment in which the entity operates (“the functional currency”). The
functional currencies of the Group entities are the same as their home currencies. The Consolidated Fi-
nancial Statements are presented in euro, which is the Group’s presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevail-
ing at the dates of the transactions, or valuation, where items are remeasured. Foreign exchange gains
and losses resulting from the settlement of such transactions and from the translation at year-end ex-
change rates of monetary assets and liabilities denominated in foreign currencies are recognized in the
income statement, except when deferred in other comprehensive income as a net investment hedge. For-
eign exchange gains and losses that relate to loans and cash and cash equivalents are presented in the
income statement within “Financial income” or “Financial expenses.” All other foreign exchange gains and
losses are presented in the income statement within “Other operating expenses.”
22
Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyper-infla-
tionary economy) that have a functional currency different from the presentation currency are translated
into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the
date of that balance sheet
• income and expenses for each income statement are translated at average exchange rates (un-
less this average is not a reasonable approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses are translated at the rate on the
dates of the transactions) and
• all resulting exchange differences are recognized in other comprehensive income. Goodwill and
fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabili-
ties of the foreign entity and are translated at the closing rate. Exchange differences arising are
recognized in equity.
2.5 Intangible assets
Intangible assets acquired in business combinations are recognized at fair value at the acquisition date.
Other intangible assets are recorded in the balance sheet at historical cost considering accumulated
amortizations. Assets with limited useful lives are amortized on a straight-line basis over their useful lives.
The amortization periods of intangible assets are:
Software and other intangible rights 3 to 7 years
Internally created software 3 to 5 years
Customer base (acquisitions) 10 years
Non-competition agreements (acquisitions) 3 years
Other intangible assets 3 years
The residual value, useful life and amortization method of each asset is examined at the end of each fi-
nancial year and adjusted, if necessary, to reflect changes in the expectations of the economic benefits to
be gained from the asset.
Intangible assets are classified as follows;
Intangible rights mainly include software licenses owned by the Group.
Internally created intangible assets include activated development costs related to software products
created by the Group. Development costs that are directly attributable to the design and testing of identifi-
able and unique software products controlled by the Group are recognized as intangible assets when the
following criteria are met:
• it is technically feasible to complete the software so that it will be available for use
• management intends to complete the software and use or sell it
• there is an ability to use or sell the software
• it can be demonstrated how the software will generate probable future economic benefits
• adequate technical, financial and other resources to complete the development and to use or sell
the software are available, and
• the expenditure attributable to the software during its development can be reliably measured.
Directly attributable costs, which are capitalized as part of the software product include the software devel-
opment employee costs and such overhead costs that are directly attributable to the development. Other
development expenditures that do not meet these criteria are recognized as an expense as incurred. De-
velopment costs previously recognized as an expense are not recognized as an asset in a subsequent
period. Computer software development costs recognized as assets are amortized over their useful lives.
Significant, unfinished intangible assets are tested for impairment annually. Research costs are recog-
nized as an expense as incurred.
Fair value adjustments in acquisitions include intangible assets acquired in business combinations, i.e.
customer base and non-competition agreements.
Leased software is activated as described in note 2.14.
23
Goodwill corresponds to the part of the acquisition cost that exceeds the Group’s share of the fair value,
on the date of purchase, for the net asset value of the acquired subsidiary. Goodwill is measured at histor-
ical cost less impairment. Goodwill is not amortized, but is tested for impairment annually and whenever
there is objective evidence of goodwill impairment. Goodwill is allocated to cash-generating units for the
purpose of impairment testing. The allocation is made to those cash-generating units that are expected to
benefit from the business combination in which the goodwill arose, taking into account the current organi-
zation structure and level of reporting.
2.6 Tangible assets
Tangible assets are stated at historical cost less accumulated depreciation and impairment loss. Historical
cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are
included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. The carrying amount of a replaced part is derecognized. All other repairs
and maintenance are charged to the income statement during the financial period in which they occur.
Depreciation on other assets is calculated using the straight-line method to allocate their cost to their re-
sidual values over their estimated useful lives, as follows:
Buildings 50 years
Leased office premises 1.5 to 7 years
Computers 3 years
Vehicles 4 to 5 years
Office furniture 5 to 10 years
Renovation of premises 5 to 7 years
Land areas are not depreciated.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount (note 2.7). Gains and losses on
disposals are determined by comparing the proceeds with the carrying amount and are recognized in
other operating income or expenses in the income statement.
Tangible right-of-use assets consist of leased computers and cars as well as leased office premises acti-
vated as described in note 2.14.
2.7 Impairment of non-financial assets
The Group assesses at the end of each reporting period, whether there are indications of impairment of
non-financial assets. Assets that have an indefinite useful life – for example, goodwill or intangible assets
not ready to use – are not subject to amortization and are tested annually for impairment. Assets that are
subject to amortization, as well as assets with unlimited useful life, are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized through profit or loss for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs to dispose and value-in-use. Value-in-use is defined as the discounted estimated future net
cash flows generated by the asset or cash-generating unit. For the purposes of assessing impairment, as-
sets are grouped at the lowest levels for which there are separately identifiable cash flows followed for in-
ternal management (cash-generating units).
The impairment loss recognized for non-financial assets other than goodwill is reversed, in case there has
been a change in the estimates of recoverable amount. The impairment loss is only reversed to the
amount of the book value of the asset before impairment. An impairment loss for goodwill is not reversed
under any circumstances.
The essential assumptions for impairment tests are presented in note 22.
2.8 Financial instruments
Financial instruments and their fair values by measurement category are detailed in note 21.
24
Recognition
Regular purchases and sales of financial instruments are recognized on the trade-date – the date on
which the Group commits to purchase or sell the instrument. At initial recognition, the Group measures a
financial instrument at its fair value plus, in the case of a financial asset not at fair value through profit or
loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial instrument.
Transaction costs of financial instruments carried at FVPL are expensed in profit or loss.
Financial assets are derecognized when the rights to receive cash flows from the investments have ex-
pired or have been transferred and the Group has transferred substantially all risks and rewards of owner-
ship. Financial liabilities are derecognized when the liability has ceased, that is, the obligation specified in
the agreement is fulfilled or revoked or its validity has ended.
Classification
The Group classifies its financial instruments in the following subsequent measurement categories:
Categories of financial assets:
• measured at amortized cost
• measured at fair value through Other Comprehensive Income (FVOCI), and
• measured at fair value through profit or loss (FVPL).
The classification of financial assets depends on the Group’s business model for managing the financial
assets and the contractual terms of the cash flows. The classification changes only if the business model
changes.
Categories of financial liabilities:
• measured at amortized cost, and
• measured at fair value through profit or loss (FVPL).
Subsequent measurement
Gains and losses for assets and liabilities measured at fair value will either be recorded in profit or loss or
OCI.
The Group measures all its equity investments at FVOCI, because the Group’s management has made
an irrevocable election to present fair value gains and losses on equity investments in OCI. There is no
subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of
these investments. Only the dividends from these investments are recognized in profit or loss when the
Group’s right to receive payments is established.
Trade receivables are recognized initially at fair value and are subsequently measured at amortized cost,
less provision for impairment. Trade receivables are classified as current assets if collection is expected in
one year or less. Otherwise, they are classified as non-current assets. Expected credit losses are esti-
mated as described in note 4.1.4. Trade receivables transferred to a financial institution in factoring ar-
rangements are not included in the Consolidated Statement of Financial Position because the Group has
transferred substantially all risks and rewards of ownership of the transferred trade receivables.
Cash and cash equivalents include cash in hand and deposits held at call with banks. Items included
under cash and cash equivalents have maturities of three months or less from the date of acquisition.
Cash and cash equivalents are derecognized when the Group’s contractual right to receive cash flows has
expired or essentially all of the risks and rewards incident to ownership have been transferred from the
Group.
Trade payables and other payables are obligations to pay for goods or services that have been acquired
from suppliers in the ordinary course of business. They are classified as current liabilities unless payment
is not due within one year or less after the reporting period.
Loans are recognized initially at fair value, net of transaction costs incurred. Loans are subsequently car-
ried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption
value is recognized in the income statement over the period of the borrowings using the effective interest
method.
25
Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt instru-
ments carried at amortized cost. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. See note 4.1.4 for further details.
2.9 Inventory
Inventory is stated at the lower of cost and net realizable value. Cost is determined using the FIFO
method. Cost comprises direct materials, direct labor and an appropriate proportion of variable and fixed
overhead expenditure, the latter being allocated on the basis of normal operating capacity. Net realizable
value is the estimated selling price in the ordinary course of business less the estimated costs of comple-
tion and the estimated costs necessary to make the sale.
2.10 Current and deferred income tax
The taxes in the consolidated income statement include the current tax for the Group companies, correc-
tions to taxes from previous financial periods, and the change in deferred taxes. Current tax is calculated
on taxable income according to the tax rate in force in each country concerned. In the case of items en-
tered directly in shareholders’ equity, the tax effect is recognized in equity.
Deferred income tax is recognized on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts. However, deferred tax liabilities are not recognized if they arise from
the initial recognition of goodwill. Deferred income tax is not accounted for if it arises from the initial recog-
nition of an asset or liability, in a transaction other than a business combination, that at the time of the
transaction affects neither accounting nor taxable profit or loss. The most significant temporary differences
arise from the depreciation and amortization of assets and the provisions of foreign subsidiaries. Deferred
taxes are determined by using the tax base in force on the balance sheet date or the enacted tax base at
the time of tax base transition.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be availa-
ble against which the temporary differences can be utilized. It is evaluated at the end of each financial pe-
riod, whether the conditions for recognizing a deferred tax asset are met.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset cur-
rent tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate
to income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities where there is an intention to settle the balances on a net basis.
2.11 Employee benefits
Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through pay-
ments to insurance companies or trustee-administered funds, determined by periodic actuarial calcula-
tions. The Group has both defined benefit and defined contribution plans.
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a sepa-
rate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does
not hold sufficient assets to pay all employees the benefits relating to employee service in the current and
prior periods. The contributions are recognized as employee benefit expenses when they are due. Prepaid
contributions are recognized as an asset to the extent that a cash refund or a reduction in the future pay-
ments is available. A defined benefit plan is a pension plan that is not a defined contribution plan. Defined
benefit plans define an amount of pension benefit that an employee will receive on retirement, dependent
on one or more factors, such as age, years of service and compensation. Under a defined benefit pension
plan, the Group’s obligation includes the actuarial and investment risks related to the plan in addition to
the payments made under the plan. The pension expenses related to defined benefits are calculated us-
ing the Projected Unit Credit Method. Pension expenses are recognized as expenses by distributing them
over the estimated period of service of the personnel concerned. The amount of the pension obligation is
the present value of the estimated future pensions payable (Note 11).
26
In Sweden and the Netherlands, the Group has multi-employer defined benefit plans, of which there is not
sufficient information available to use benefit accounting. These plans are accounted as defined contribu-
tion plans.
Bonus plans
The Group recognizes a liability and an expense for bonuses based on a formula that takes into consider-
ation the profit attributable to the Company’s shareholders after certain adjustments. The Group recog-
nizes the expense and liability where contractually obliged or where there is a past practice that has cre-
ated a constructive obligation.
Share-based incentive plans
Share-based incentive plans are treated as arrangements that are settled partly as shares and partly as
cash. The part of a remuneration earned that the participants receive as Etteplan Oyj shares is treated as
an arrangement that is settled as shares and recorded in shareholders’ equity; the part of a remuneration
earned that is paid in cash to pay off taxes and other levies is recorded in liabilities. The fair value of the
employee services received in exchange for the grant of the shares is recognized as an expense. The to-
tal amount to be expensed is determined by reference to the fair value of the shares granted taking into
account market performance conditions and non-vesting conditions. At the end of each reporting period,
the Group revises its estimates of the number of shares that are expected to vest based on the non-mar-
ket vesting conditions and service conditions. The Group recognizes the impact of the revision to original
estimates, if any, in the income statement, with a corresponding adjustment in equity.
2.12 Revenue recognition
Etteplan’s revenue streams consist mainly of the following three service areas:
Engineering Solutions refer to the innovation, engineering and calculations of the technical attributes of
machinery or equipment for the purpose of product development and manufacturing. Assignments are typ-
ically product development projects for a new product, plant engineering projects or Engineering-to-Order
projects, involving the customization of the product in accordance with end customer requirements and the
market area’s legislation.
Software and Embedded Solutions refer to product development services and technology solutions that
allow the controlling of machines and equipment and enable their digital connectivity as part of the Internet
of Things.
Technical Documentation Solutions refer to the documentation of a product’s technical attributes, such
as manuals and service instructions for the users of a product, as well as related content management
and distribution in print or digital form.
Revenue includes revenue from contracts with customers adjusted for indirect taxes and discounts. Reve-
nue is recognized following a five-step model, on the basis of which the timing and amount of revenue to
be recognized is determined. The model involves identifying the contract with the customer and its perfor-
mance obligations, determining transaction prices, allocating transaction prices to performance obligations
and recognizing revenue. Revenue is recognized when the customer obtains control of the promised ser-
vice or product; either over time or at a point in time. The Group recognizes revenue in a way that repre-
sents the rendering of the promised services or goods to the customer, and to such an amount that repre-
sents the compensation the Group expects to be entitled to in exchange for the goods and services. Con-
tracts with customers do not include a significant financial component.
Etteplan divides its services into the following categories according to the applied method of revenue
recognition:
• Design and consultancy projects, where either a fixed price or a target price limiting the amount of
revenue that can be recognized for the project is set in the agreement with the customer. In this
type of projects, revenue is recognized over time based on the percentage of completion method
because the Group’s performance creates an asset that has no alternative use for the Group and
the Group has an enforceable right to payment for performance completed to date. The percent-
age of completion is measured as the costs of the project realized as a proportion to the total ex-
pected costs of the project because it is seen as the most accurate way of measuring the transfer
of control to the customer. If the agreement includes separately identifiable performance
27
obligations, revenue for each performance obligation is recognized separately. Dealing with sepa-
rate performance obligations does not involve significant considerations. In the case of contracts
whose outcome cannot be assessed reliably, project expenditure is expensed and revenue is rec-
ognized to an amount not exceeding the expenditure. The total loss on a contract that will proba-
bly result in a loss is expensed immediately. Incentives, additional work and changes related to
the project are recognized in the revenue and costs of the project to the extent that can be esti-
mated reliably, or that is agreed upon with the customer. The revenue for additional work and
changes are recognized separately when they comprise a separate performance obligation and
are priced according to stand-alone transaction prices.
• Design and consultancy projects, where all costs incurred can be invoiced to the customer without
other limitations than the agreed invoicing price. In this type of projects, revenue is recognized
over time as the service is being performed. The performance obligation in the agreement with the
customer is most typically one working hour and it is considered to be fulfilled over time because
the customer simultaneously receives and consumes the benefits provided by the service .
• Arrangements where the customer buys a license to software created by Etteplan and mainte-
nance related to the license. Revenue for the license itself is recognized when the customer ob-
tains access to the license. Revenue for maintenance related to the license is recognized over
time as the service is rendered.
Transaction prices are based on customer agreements, where separate prices are set for separate perfor-
mance obligations. Generally, the pricing of separate performance obligations equals their standalone
transaction prices. Changes to customer agreements, as well as additional work agreed on, are mainly
recognized as separate customer agreements. The Group has an enforceable right to payment for perfor-
mance completed to date, in case the project is terminated, in essentially all of its projects.
Costs incurred from work performed and transferred to customer, but not yet invoiced, are activated as
contract assets and included in the balance sheet line item “Work in progress.” Contract assets are trans-
ferred to Trade payables upon invoicing, which is generally done on a monthly basis. Invoices are most
typically payable within 30 days. Payments received from customers in advance of work being transferred
are recorded as contract liabilities in the balance sheet line item “Advance payments.” These amounts are
recognized as revenue as the work is being transferred to the customer.
In applying IFRS 15, the Group uses the practical expedient permitted by the standard and does not dis-
close the aggregate amount of the transaction price allocated to performance obligations that are unsatis-
fied as at the end of the reporting period or the estimated timing of satisfaction, as the unsatisfied perfor-
mance obligations are either part of contracts that have an original expected duration of one year or less
or the Group has the right to invoice a customer at an amount that corresponds directly with its perfor-
mance to date.
2.13 Interest and dividend income
Interest income is recognized using the effective interest method. When a receivable is impaired, the
Group reduces the carrying amount to its recoverable amount, being the estimated future cash flows dis-
counted at the original effective interest rate of the instrument, and continues unwinding the discount as
interest income. Interest income on impaired receivables is recognized using the original effective interest
rate. Dividend income is recognized when the shareholder gains the right to receive payment.
2.14 Lease agreements
The Group leases various premises, equipment, software and cars. Rental contracts are typically made for
fixed periods of 3 to 10 years but may have extension options as described below.
At the inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration. Leases are recognized as a right-of-use asset and a corresponding
lease liability at the date at which the leased asset is available for use by the Group.
Lease liabilities (note 27) include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
28
• variable lease payments that are based on an index or a rate
• amounts expected to be payable by the lessee under residual value guarantees
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising
that option.
The lease liability is subsequently measured at amortized cost using the effective interest method. It is re-
measured when there is a change in future lease payments arising from a change in an index or rate, if
there is a change in the Group’s estimate of the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termi-
nation option or if there is a revised in‑substance fixed lease payment. When the lease liability is remeas-
ured in this way, a corresponding adjustment is made to the carrying amount of the right‑of‑use asset.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be deter-
mined, or the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate. The interest expenses related to leases are presented in note 15.
Right-of-use assets (notes 19 and 20) are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives re-
ceived
• any initial direct costs, and
• restoration costs.
After the commencement date the right-of-use asset is measured at amortized cost less impairment. It is
adjusted with certain remeasurements of the lease liability. The right-of-use asset is depreciated over the
shorter of the asset's useful life and the lease term on a straight-line basis. The right-of-use asset is tested
for impairment, when necessary, and the possible impairment is recognized through profit or loss.
The Group uses the practical expedient included in the IFRS 16 standard and recognizes payments asso-
ciated with leases of low-value assets on a straight-line basis as an expense in profit or loss. Low-value
assets comprise IT equipment and items of office furniture (note 12).
Extension options are included in several of the Group’s office premises rental agreements. These terms
are used to maximize operational flexibility in terms of managing contracts. The Group’s management
uses judgment when determining the extent to which the extension options are used. The extension op-
tions are used in such a way that the lease term for lease agreements is at least 18 months also for lease
agreements with a non-cancelable term of under 18 months, unless the lease agreement in question is
canceled or a decision for a specific timing of cancellation has been made. For lease agreements in which
the original non-cancelable term is 18 months or more, extension options are used up to 18 months, when
the remaining non-cancelable term is under 18 months. The management believes this gives the most ac-
curate view of the Group’s total lease liability. If the extension options were used up to 12 months instead
of 18 months, the right-of-use assets and lease liability related to premises would decrease by approxi-
mately EUR 2.2 million. If the extension options were used up to 24 months, the corresponding effect in
balance sheet items would be an increase of approximately EUR 2.6 million.
2.15 Non-recurring items
Non-recurring items are disclosed separately in the Financial Statements where it is necessary to do so to
provide further understanding of the financial performance of the Group. They are material items of in-
come and expense that are shown separately due to the significance of their nature or amount. Non-recur-
ring items can include, among other things, costs and income related to business combinations as well as
certain reorganization costs.
2.16 Government grants
Government grants that are intended to compensate costs are recognized as income over the same pe-
riod as the related costs are recognized.
29
3 Critical accounting estimates and management judgment-based decisions
When preparing the Consolidated Financial Statements, estimates and assessments must be made con-
cerning the future. These may affect assets and liabilities at the time of balance sheet preparation, as well
as income and expenses in the reporting period. Actual figures may differ from those used in the financial
statements. The Group’s management may have to make judgment-based decisions relating to the choice
and application of accounting policies for the financial statements. This particularly concerns the cases
when effective IFRS standards allow alternative valuation, recording and presenting manners.
Judgments and estimates made in the preparation of the financial statements are based on the man-age-
ment’s best judgment on the closing date. They are based on previous experience and future expec-ta-
tions considered to be most likely on the closing date. These include, in particular, factors related to the
Group’s financial operating environment affecting sales and the cost level. The Group monitors the reali-
zation of these estimates and assumptions. The effects of any changes in estimates and assumptions are
recognized in the period in which they have been detected.
The assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are addressed below.
Fair value measurement in connection with acquisitions
In business combinations, tangible assets have been compared with the market prices of equivalent as-
sets, and decline in the value of acquired assets due to various factors has been estimated. The fair value
measurement of intangible assets is based on estimates of asset-related cash flows. The management
believes that the estimates and assumptions are sufficiently precise for use as the basis for fair value
measurement. Any indications of impairment of tangible and intangible assets are reviewed annually.
Impairment testing
The Group tests goodwill and intangible assets with unlimited useful lives for impairment annually. Indica-
tions of impairment are evaluated in the manner described in note 2.7. Recoverable amounts for cash-
generating units are based on value-in-use calculations. Estimates are required in making these calcula-
tions. Values recorded in the balance sheet at the end of the financial year were EUR 105,385 thousand
(2021: EUR 92,380 thousand). Additional information on the sensitivity of the recoverable amounts to
changes in assumptions used is disclosed in Note 22 Impairment testing.
Contingent considerations
The amount of a contingent consideration in a business combination is often dependent on the future eco-
nomic development of the business acquired. The actual outcome may deviate from the assumptions
made at initial recognition, which can lead to revaluation of the previously recognized contingent consider-
ation.
Revenue recognition
Revenue recognized over time is based on the actual service provided to the end of the reporting period
as a proportion of the total services to be provided. The percentage of completion is measured as the
costs of the project realized as a proportion to the total expected costs of the project. Estimates of reve-
nues, costs or extent of progress toward completion are revised if circumstances change, and at each re-
porting date. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or
loss in the period in which the circumstances that trigger the revision become known by management.
30
4 Management of financial risks
This note explains the Group’s exposure to financial risks and how these risks could affect the Group’s
future financial performance.
4.1 Financial risk factors
In its business operations, the Group is exposed to several types of financial risks: foreign-currency, inter-
est, financing and liquidity, counterparty and credit risks. The objective of financial risk management is to
protect the Group from unfavorable changes in the financial market and thus contribute as much as possi-
ble to guaranteeing the Group’s profitability and equity, and to guarantee sufficient liquidity in a cost-effi-
cient manner. Management of financial risks has been centralized with the Group’s financial department,
which is responsible for the identification and evaluation of, and protection against, the Group’s financial
risks. Furthermore, the financial department is responsible, in a centralized fashion, for the funding of the
Group, and it provides the management with information about the financial situation of the Group and the
business units.
4.1.1 Foreign-currency risk
Foreign currency risk related to different currencies comes about as a result of foreign currency-denomi-
nated commercial transactions and from translation of foreign-currency-denominated balance sheet items
into the reporting currency.
Transaction risk
The majority of the Group’s business operations are handled in the currency of the project country of the
respective Group company. This means that both sales and costs are in the same currency. In the review
period, the group hedged a planned acquisition, which did not materialize, with a forward currency deriva-
tive. This resulted in a currency hedging loss for the review period, which is explained more in note 15 Fi-
nancial expenses.
Translation risk
The Group is exposed to a translation risk caused by fluctuations in foreign currency exchange rates when
it translates balance sheet items of subsidiaries based outside the euro area into its reporting currency.
The main risk is with goodwill booked in Swedish Krona (SEK). The goodwill booked in SEK at the end of
the financial year was EUR 30,088 thousand (2021: EUR 26,655 thousand).
A sensitivity analysis of the effect of reasonable potential changes in exchange rates on the Group’s profit
for the financial year, equity and goodwill at the balance sheet date is presented in the table below. In the
analysis, the change in exchange rates has been estimated to be +/-10 per cent from the reporting date,
and other factors are estimated to remain unchanged.
2022
EUR 1,000
Effect on profit for the
financial year
Effect on other equity items
Effect on goodwill
EUR/SEK 10% increase
-414
-1,110
-2,735
EUR/SEK 10% decrease
506
1,356
3,343
EUR/PLN 10% increase
-131
-401
-371
EUR/PLN 10% decrease
160
490
453
EUR/CNY 10% increase
-67
-346
-181
EUR/CNY 10% decrease
82
423
221
EUR/DKK 10% increase
-75
-165
-284
EUR/DKK 10% decrease
91
202
347
2021
1 000 EUR
Effect on profit for the
financial year
Effect on other equity items
Effect on goodwill
EUR/SEK 10% increase
-224
-1,104
-2,423
EUR/SEK 10% decrease
274
1,350
2,962
EUR/PLN 10% increase
-83
-275
-377
EUR/PLN 10% decrease
101
336
461
EUR/CNY 10% increase
-155
-288
-185
EUR/CNY 10% decrease
189
352
226
EUR/DKK 10% increase
-45
-127
-284
EUR/DKK 10% decrease
55
155
347
31
4.1.2 Interest risk
The Group is exposed to interest risk in two ways: because of changes in value for balance sheet items
(i.e., price risk) and cash flow risk caused by changes in market interest rates.
On the balance sheet date, the total amount of interest-bearing debt excluding lease liabilities was EUR
68,991 thousand (2021: EUR 55,803 thousand) covered with contracts in which the interest range is be-
tween 0.55 and 3.21 per cent (2021: between 0.55 and 0.8 per cent). All of the Group’s loans have varia-
ble interest rates.
The Group monitors the interest risk by calculating the effect of one percentage point change in interest
rates on the Group’s next twelve months’ interest expenses. The sensitivity of the interest position to
changes in interest rates is determined by calculating how much an equal one percentage point change in
interest rates throughout the Group’s interest rate range would change yearly interest expenses. Only in-
terest-bearing loans from financial institutions are included in the calculation. Lease liabilities are not in-
cluded in the calculation. At the balance sheet date, the Group’s sensitivity to an increase in interest rates
of one percentage point was approximately EUR 549 thousand (2021: EUR 330 thousand).
4.1.3 Financing and liquidity risk
The Group aims to guarantee solid liquidity in all market conditions through efficient cash management.
Credit limits tied to cash pool arrangements are used for short-term financing. On the balance sheet date,
the Group had EUR 14,238 thousand (2021: EUR 14,497 thousand) of available credit limits, of which
EUR 1,632 thousand (2021: none) were in use. Refinancing risk is attempted to be minimized by applying
a balanced maturity schedule to the loan portfolio, ensuring sufficient maturity of loans, and using several
banks as sources of financing. The level of financing is increased through additional loans when neces-
sary.
The Group has financial covenants, which are tied to the equity ratio of the Group and to the debt/EBITDA
ratio of the Group, and these mainly apply to all the Group loans. In case the Group’s equity ratio at the
time of the Financial Statement is below 25 per cent or the debt/EBITDA ratio is higher than 3.5, the fi-
nancer has the right to demand immediate payment of all the Group’s loans. According to the Consoli-
dated Financial Statements in 2022, the terms of these covenants were not breached.
To balance the cash effect of the long payment terms typical to design business, the Group sells a part of
its key customer receivables to a finance institution. There is no credit risk related to the sold receivables
and these receivables are not included in the Consolidated Statement of Financial Position.
Maturity analysis of financial liabilities
2022
EUR 1,000
Less than 1 year
1-5 years
Borrowings
21,139
47,852
Lease liabilities
13,114
8,478
Interest payments
841
981
Liabilities from acquisitions
52
0
Trade and other payables
14,209
26
Total
49,354
57,337
2021
EUR 1,000
Less than 1 year
1-5 years
Borrowings
25,453
30,350
Lease liabilities
13,894
8,777
Interest payments
277
367
Liabilities from acquisitions
0
800
Trade and other payables
13,180
20
Total
52,804
40,314
32
Liabilities from acquisitions in December 31, 2022 consist of TekPartner earn out liability of EUR 33 thou-
sand and DDCom additional purchase price of EUR 19 thousand.
Non-monetary changes in interest-bearing liabilities
EUR 1,000 EUR
2022
2021
Interest-bearing liabilities Jan 1
78,474
64,974
Financing cash flow
830
2,900
Non-monetary changes
Changes in lease agreements
10,344
8,893
Loans and lease liabilities assumed in business combinations
1,295
1,547
Translation differences and other changes
-360
160
Non-monetary changes, total
11,279
10,599
Interest-bearing liabilities Dec 31
90,583
78,474
4.1.4 Counterparty and credit risk
Financing contracts have the associated risk of the counterparty being unable to fulfill its obligations under
the contract. To minimize the counterparty risk financing contracts are concluded with leading Nordic
banks that have a good credit rating.
Credit risk related to business operations arises out of a customer’s inability to perform its contractual obli-
gations. A considerable proportion of the Group’s business operations focus on large, financially solid
companies that operate internationally. Credit risk is also reduced by the customer companies being di-
vided among several different sectors of operation. The Group aims to ensure that services are sold only
to such customers that have an appropriate credit rating. Credit risk is controlled systematically, and over-
due sales receivables are assessed on a weekly basis. The Company strives to control the effects of in-
creased financial uncertainty by actively monitoring its receivables and by an efficient debt collection pro-
cess. The maximum customer credit risk exposure at the end of the financial year is the book value of ac-
counts receivable.
Expected credit loss allowance
To measure expected credit losses, the Group applies the IFRS 9 simplified approach, which uses a life-
time expected loss allowance for all trade receivables and contract assets (“Work in progress”), including
amounts not due.
As described in the table below, trade receivables and contract assets are grouped based on shared
credit risk characteristics and the days past due. The measurement of the expected credit losses includes
forward-looking information in the form of the estimated growth of the EU gross domestic product. In addi-
tion to the lifetime expected credit loss allowance, the Group’s management estimates expected credit
losses case by case according to management judgment. Generally, the Group recognizes a 50 per cent
provision for impairment for receivables that are more than 60 days past due and a 100 per cent provision
for receivables that are more than 90 days past due.
2022
Past due
EUR 1,000
Not due
1-30 d
31-60 d
61-90 d
> 90 d
Total
Expected loss rate
0.0%
0.1%
1.9%
5.2%
6.3%
Trade receivables
48,641
5,097
629
56
746
55,169
Work in progress
30,181
0
0
0
0
30,181
Lifetime expected credit loss allow-
ance
7
5
12
3
47
74
Case-by-case credit loss allowance
320
320
Expected credit loss allowance
394
33
2021
Past due
EUR 1,000
Not due
1-30 d
31-60 d
61-90 d
> 90 d
Total
Expected loss rate
0.0 %
0.0 %
0.9 %
4.6 %
6.6 %
Trade receivables
38,056
3 353
802
36
649
42,896
Work in progress
26,810
0
0
0
0
26,810
Lifetime expected credit loss allow-
ance
20
1
7
2
43
73
Case-by-case credit loss allowance
286
286
Expected credit loss allowance
359
Movements of the allowance for impairment
EUR 1,000
2022
2021
Expected credit loss allowance Jan 1
-359
-364
Payments received
58
44
Expected credit loss allowance in acquirees
0
3
Expected credit loss allowance, decrease (+) / increase (-)
-93
-43
Expected credit loss allowance Dec 31
-394
-359
Trade receivables and contract assets are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, among others, the failure of a
debtor to engage in a repayment plan with the Group.
4.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure,
the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue
new shares or sell assets.
Consistent with other companies in the industry, the Group monitors capital on the basis of the net gearing
ratio. This ratio is calculated as net debt divided by equity. Net debt is calculated as total gross interest-
bearing debt less cash and cash equivalents. To ensure sufficient flexibility, the goal is to keep the net
gearing ratio within 30-100 per cent. The following table sets out the Group’s net gearing ratio:
EUR 1,000
2022
2021
Gross interest-bearing debt
90,583
78,474
Less: Cash and cash equivalents
-19,564
-30,356
Net debt
71,019
48,118
Total equity
106,311
98,914
Net gearing ratio
66.8%
48.6%
34
5 Business combinations
Business combinations in financial year 2022
Cognitas GmbH (100%)
Etteplan acquired Cognitas GmbH, a German technical information lifecycle management company from
Canon Deutschland GmbH on January 13, 2022. The acquisition strengthens Etteplan´s position in Ger-
many and continues our strategic investments in Central Europe. Cognitas is a leading German consulting
and services company with 200 professionals in consulting and technical information authoring and man-
agement. The provisional goodwill of EUR 8,446 thousand arising from the acquisition is attributable to the
technical know-how of the acquiree's personnel, and the expected synergies arising from the acquisition.
None of the goodwill recognized is expected to be deductible for income tax purposes.
Syncore Technologies AB (100%)
Etteplan strengthened its position in Sweden and on February 2, 2022 acquired Syncore Technologies
AB, a technology services company focusing on embedded systems. Founded in 2000, Syncore is spe-
cialized in advanced embedded systems projects such as design, hardware and software development,
and product lifecycle services, especially for customers in the industrial systems, aerospace and defense
industries. Syncore employs 46 embedded systems experts in Linköping, Sweden. The provisional good-
will of EUR 5,880 thousand arising from the acquisition is attributable to the technical know-how of the ac-
quiree's personnel, and the expected synergies arising from the acquisition. None of the goodwill recog-
nized is expected to be deductible for income tax purposes.
LCA Consulting Oy (100%)
Etteplan strengthened its position as an expert in sustainable development and acquired LCA Consulting
Oy, a provider of high-quality expert services, on April 29, 2022. Founded in 2013 as a spin-off at LUT
University, LCA Consulting focuses on life cycle assessment of companies, products and production, car-
bon footprinting and expert training. LCA Consulting, based in Lappeenranta, Finland, employs 11 experts
and its customer base consists especially of customers in industrial production and manufacturing, the
construction industry and the public sector.
The provisional goodwill of EUR 521 thousand arising from the acquisition is attributable to the technical
know-how of the acquiree's personnel, and the expected synergies arising from the acquisition. None of
the goodwill recognized is expected to be deductible for income tax purposes.
DDCom (100%)
Etteplan continued to expand its operations in the Netherlands through the acquisition of DDCom B.V.
(Van Dulmen CAD-Illustraties B.V.) on May 30,2022. The acquisition strengthens Etteplan’s capabilities in
3D content-based animation and visualization services related to technical documentation. The company
is located in the Eindhoven area and employs about 15 specialists. DDCom B.V.’s customers operate in
automotive, high tech, med tech and product manufacturing industries and include high-profile companies
such as DAF Trucks, ASML, VDL, Philips & Shimano.
The provisional goodwill of EUR 723 thousand arising from the acquisition is attributable to the technical
know-how of the acquiree's personnel, and the expected synergies arising from the acquisition. None of
the goodwill recognized is expected to be deductible for income tax purposes.
Acquisitions in total
The following table summarizes the provisional values of acquisition considerations, assets acquired and
liabilities assumed for the acquisitions in total.
35
Consideration transferred:
EUR 1,000
Cash payment
24,357
Directed share issue
1,929
Contingent consideration
19
Total consideration transferred
26,305
Assets and liabilities
Tangible assets
1,609
Intangible assets
129
Customer relationships (intangible assets)
10,618
Non-competition agreements (intangible assets)
327
Trade and other receivables
14,333
Cash and cash equivalents
3,506
Total assets
30,521
Non-current pension liabilities
6,902
Other non-current liabilities
482
Current dividend liabilities
6,500
Other current liabilities
3,112
Deferred tax liability
2,791
Total liabilities
19,787
Total identifiable net assets
10,734
Formation of Goodwill:
Consideration transferred
26,305
Total identifiable net assets
-10,734
Goodwill
15,571
Trade and other receivables comprise gross contractual amounts and equal fair value amounts of EUR
14,333 thousand.
The revenue included in the income statement contributed by the acquired companies was EUR 20,130
thousand and profit for the financial year was EUR 688 thousand. Had all the companies been consoli-
dated from January 1, 2022, the income statement would show revenue of EUR 351,393 thousand and
profit for the financial year of EUR 18,198 thousand.
Changes in contingent considerations in financial year 2022
A profit of EUR 767 thousand in total was recognized in the income statement from premeasurements of
contingent considerations related to previous acquisitions.
Business combinations in financial year 2021
TekPartner A/S (100%)
Etteplan expanded its business in the Nordics and opened up a new country, Denmark, by acquiring Tek-
Partner, an engineering and IT company specialized in electronics and software on January 7, 2021. Tek-
Partner, founded 2009, covers the development of all core disciplines within embedded software, intelli-
gent electronics, FPGA (field-programmable gate array) and IoT (Internet of things). In 2019, TekPartner´s
revenue was approximately 8 million euros.
TekPartner delivers its services through a combination of its own team of 19 highly qualified engineering
professionals and a vast network of international project partners and over 30 freelancers working in Den-
mark. TekPartner is located in Herlev and Odense in Denmark.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 5,833 thou-
sand in total. In addition to this payment a contingent consideration of EUR 0-1,900 thousand (undis-
counted amount) is agreed upon. The contingent consideration will be paid in full provided that TekPartner
36
A/S’s result in the financial years 2021 and 2022 reaches the thresholds set in the share transfer agree-
ment. The fair value of the contingent consideration is estimated by applying the income approach. At the
time of the acquisition the fair value of the contingent consideration was EUR 800 thousand.
The goodwill of EUR 3,121 thousand arising from the acquisition is attributable to the technical know-how
of the acquiree's personnel, and the company's operating model. None of the goodwill recognized is ex-
pected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 99 thousand, were included in other operating expenses in the con-
solidated statement of comprehensive income for the financial year 2020.
F.I.T. Fahrzeug Ingenieurtechnik GmbH (100%)
Etteplan strengthened its position in technical documentation in Germany through the acquisition of F.I.T.
Fahrzeug Ingenieurtechnik GmbH on May 17, 2021. Founded in 1972, F.I.T. specializes in technical docu-
mentation solutions for governmental utility vehicles and the defense industry. It is located in Koblenz and
employs about 15 technical documentation specialists.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 560 thou-
sand in total.
The goodwill of EUR 456 thousand arising from the acquisition is attributable to the technical know-how of
the acquiree's personnel, and the company's operating model. None of the goodwill recognized is ex-
pected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 16 thousand, are included in other operating expenses in the consol-
idated statement of comprehensive income.
Skyrise.tech Sp. z o.o. sp.k. (100%)
Etteplan acquired Skyrise.tech, a Polish software development company, on June 14, 2021. Through the
acquisition, Etteplan will significantly strengthen its capability to deliver applications and cloud software
solutions. Skyrise.tech, founded in 2008, is a fast-growing modern software development company work-
ing mostly with customers in logistics, mobility, healthcare and enterprise industries. In 2020, Skyr-
ise.tech’s revenue was some EUR 3.5 million. The acquired company has about 80 software specialists in
Katowice and Gdansk in Poland.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 7,105 thou-
sand in total.
The goodwill of EUR 4,226 thousand arising from the acquisition is attributable to the technical know-how
of the acquiree's personnel, and the company's operating model. None of the goodwill recognized is ex-
pected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 196 thousand, are included in other operating expenses in the con-
solidated statement of comprehensive income.
Adina Solutions Oy (100%)
Etteplan strengthened its know-how in technical documentation of software by acquiring Adina Solutions
Oy from Finland on August 2, 2021. Adina Solutions Oy, founded in 2016 specializes in planning and im-
plementation of technical documentation of software, content localization as well as consulting and train-
ing. Originating from Tampere, Finland, Adina Solutions Oy employs a total of 13 content producers and
technical communications professionals. Its clientele consists of software companies and equipment man-
ufacturers.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 941 thou-
sand in total.
The goodwill of EUR 457 thousand arising from the acquisition is attributable to the technical know-how of
the acquiree's personnel, and the company's operating model. None of the goodwill recognized is ex-
pected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 20 thousand, are included in other operating expenses in the consol-
idated statement of comprehensive income.
BST Buck systemtechnik GmbH (100%)
Etteplan acquired BST Buck Systemtechnik GmbH in Brunsbüttel in the Northern part of Germany on Sep-
tember 29, 2021. The company specializes in software development, process automatization & hardware
engineering and employs slightly more than 30 specialists. BST Buck Systemtechnik GmbH ‘s customers
operate in chemical, pharmaceutical, energy and food & beverage industries.
The acquisition of BST Buck Systemtechnik GmbH complements our current operations in industrial
37
automation and process engineering and creates a stronger and wider growth platform for us in the im-
portant engineering market in Germany.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 990 thou-
sand in total.
The goodwill of EUR 873 thousand arising from the acquisition is attributable to the technical know-how of
the acquiree's personnel, and the expected synergies arising from the acquisition. None of the goodwill
recognized is expected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 63 thousand, are included in other operating expenses in the consol-
idated statement of comprehensive income.
Acquisitions in total
The following table summarizes the values of acquisition considerations, assets acquired and liabilities
assumed for the acquisitions in total.
Consideration transferred:
EUR 1,000
Cash payment
15,428
Contingent consideration
800
Total consideration transferred
16,228
Assets and liabilities
Tangible assets
858
Intangible assets
7
Customer relationships (intangible assets)
7,466
Non-competition agreements (intangible assets)
355
Trade and other receivables
2,818
Cash and cash equivalents
1,249
Total assets
12,753
Non-current liabilities
917
Current liabilities
3,020
Deferred tax liability
1,720
Total liabilities
5,657
Total identifiable net assets
7,096
Formation of Goodwill:
Consideration transferred
16,228
Total identifiable net assets
-7,096
Goodwill
9,132
Trade and other receivables comprise gross contractual amounts and equal fair value amounts of EUR
2,818 thousand.
The revenue included in the income statement contributed by the acquired companies was EUR 10,238
thousand and the profit for the financial year was EUR 1,450 thousand. Had all the companies been con-
solidated from January 1, 2021, the income statement would show revenue of EUR 302,873 thousand and
profit for the financial year of EUR 19,581 thousand.
38
6 Segment reporting
The Group has three reportable segments, the revenue of which consist mainly of the rendering of ser-
vices
Engineering Solutions refer to the innovation, engineering and calculations of the technical attributes of
machinery or equipment for the purpose of product development and manufacturing. Assignments are typ-
ically product development projects for a new product, plant engineering projects or Engineering-to-Order
projects, involving the customization of the product in accordance with end customer requirements and the
market area’s legislation.
Software and Embedded Solutions refer to product development services and technology solutions that
allow the controlling of machines and equipment and enable their digital connectivity as part of the Internet
of Things.
Technical Documentation Solutions refer to the documentation of a product’s technical attributes, such
as manuals and service instructions for the users of a product, as well as related content management
and distribution in print or digital form.
EUR 1,000
Engineering
Solutions
Software and
Embedded
Solutions
Technical Do-
cumentation
Solutions
Reportable
segments
total
Eliminations
and other
Total
2022
External revenue
183,693
95,934
69,808
349,436
734
350,170
Operating profit (EBITA)
19,388
9,193
6,060
34,641
-726
33,915
Personnel at end of the
period
2,092
815
886
3,793
158
3,951
EUR 1,000
Engineering
Solutions
Software and
Embedded
Solutions
Technical Do-
cumentation
Solutions
Reportable
segments to-
tal
Eliminations
and other
Total
2021
External revenue
167,433
80,123
51,650
299,206
905
300,111
Operating profit (EBITA)
16,555
8,316
5,879
30,750
-611
30,139
Personnel at end of the
period
2,062
771
669
3,502
127
3,629
Reconciliation of Operating profit (EBITA) and Profit before taxes
EUR 1,000
2022
2021
Operating profit (EBITA)
33,915
30,139
Amortization on fair value adjustments at acquisitions
-5,293
-4,385
Operating profit (EBIT)
28,622
25,754
Financial income
1,044
593
Financial expenses
-7,280
-1,480
Profit before taxes
22,386
24,867
Segments' non-current assets
Segments' non-current assets exclude financial instruments and deferred tax assets. Non-current assets
are presented according to the location of the asset because the Group’s chief operating decision-maker
follows asset items at the country level.
EUR 1,000
2022
2021
Finland
61,329
63,609
Scandinavia
45,017
39,820
China
2,805
2,931
Central Europe
54,802
39,640
Total
163,953
146,001
Disaggregation of revenue by geographical area is presented in note 7.
39
Notes to Consolidated Comprehensive Income
7 Revenue from contracts with customers
Disaggregation of revenue
The table below presents the disaggregation of revenue by geographical area and timing of revenue recogni-
tion. The external revenue of each geographical area is presented according to the location of the seller. The
Group's operations in China sell their services both locally and through other Group companies, therefore this
revenue is partly included in the revenue from other areas. Revenue by service area is presented in note 6.
EUR 1,000
2022
2021
Primary geographical location
Finland
181,114
169,996
Scandinavia
88,346
70,153
Central Europe
68,242
47,747
China
12,468
12,216
Total
350,170
300,111
Timing of revenue recognition
Transferred at a point in time
2,288
2,241
Transferred over time
347,882
297,871
Total
350,170
300,111
Assets and liabilities related to contracts with customers
The Group recognized the following contract assets and liabilities related to contracts with customers. For
details on impairment loss allowance, please see note 4.1.4. Trade receivables are specified in note 24.
EUR 1,000
2022
2021
Contract assets (Work in progress)
Work in progress Jan 1
26,810
17,764
Business combinations
785
6
Additions
304,791
262,259
Invoicing
-301,957
-252,290
Netting work in progress and advances received
-134
-785
Other changes
-114
-144
Contract assets Dec 31
30,181
26,810
Contract liabilities (Advances received)
Advances received Jan 1
3,891
2,770
Additions
45,904
37,922
Revenue recognized that was included in the contract liability at the beginning of the period
-46,831
-35 967
Netting work in progress and advances received
-134
-785
Other changes
26
-50
Contract liabilities Dec 31
2,856
3,891
8 Other operating income
EUR 1,000
2022
2021
Premeasurement of contingent considerations in business combinations
767
0
Covid compensations received
249
132
Insurance compensations received
1
158
Other compensations received
564
60
Other operating income
1,244
938
Total
2,826
1 289
40
9 Non-recurring items
Items that are material either because of their size or their nature, and that are non-recurring are consid-
ered as non-recurring items. These items are presented within the line items to which they best relate, and
are not deducted from other items in the income statement. The amount of non-recurring items and the
line items in which they are included are specified in the table below as additional information. Non-recur-
ring items relate to acquisitions and restructuring.
EUR 1,000
2022
2021
Other operating income
767
0
Employee benefits expenses and other operating ex-
penses
-1,807
-656
Operating profit (EBIT)
-1,040
-656
Financial income and expenses
-5,133
0
Profit for the financial year
-6,173
-656
10 Materials and Services
EUR 1,000
2022
2021
Materials
9,010
8,481
Services from others
31,384
23,204
Total
40,395
31,685
11 Number of personnel and employee benefits expenses
2022
2021
Personnel
Personnel at year-end
3,951
3,629
Personnel, average
3,945
3,480
Personnel by category
Design personnel
3,732
3,436
Administrative personnel
219
193
Total
3,951
3,629
EUR 1,000
2022
2021
Employee benefits expenses
Wages and salaries
184,926
160,810
Pension costs - defined contribution plans
21,318
20,021
Pension costs - defined benefit plans
212
0
Other indirect employee benefits expenses
21,366
16,765
Total
227,823
197,596
Compensation of the Board of Directors and top management are disclosed in note 32 Related-party
transactions.
Defined Employee Benefits
In Sweden and the Netherlands, a part of the pension arrangements are multi-employer defined benefit
plans, which are secured through an insurance. The plans pool the assets contributed by various entities
that are not under common control. The assets provide benefits to employees of more than one entity.
Sufficient information for the calculation of obligations and asset by employer is not available from the in-
surers. Therefore, these plans are treated in accounting as defined contribution plans. Etteplan's share of
41
the total premiums paid to the arrangement and the share of employees participating in the arrangements
is less than 0.0 per cent. Total amount paid to the insurer in 2022 in Sweden was EUR 1,248 thousand
(2021: EUR 1,191 thousand) and in the Netherlands EUR 779 thousand (2021: EUR 594 thousand). The
payment level is not expected to change materially in the next financial period compared to the period un-
der review.
Cognitas GmbH, acquired in 2022, has a defined benefit pension plan. The expenses related to the plan
are recognized as described in note 2.11. The defined benedit pension plan is unfunded. The average du-
ration of arrangement is approximately 15 years. The payments to be made under the plan in the financial
year 2023 are expected to be approximately EUR 0.3 million.
Net defined benefit liability
EUR 1,000
2022
2021
Present value of unfunded obligations
4,897
0
Fair value of plan assets
0
0
Deficit/surplus
0
0
Net liability (+) / net asset (-)
4,897
0
Change in defined benefit obligation and plan assets
EUR 1,000
Present
value of
funded
obligation
Total
Jan 1, 2022
0
0
Acquisition of Cognitas GmbH Jan 13, 2022
6,902
6,902
Current service cost
26
26
Interest cost or income
76
76
Actuarial gains (-) and losses (+) arising from
changes in financial assumptions
-1,701
-1,701
Experience profits (-) or losses (+)
-168
-168
Contributions from plan participants
0
0
Benefits paid
-238
-238
Dec 31, 2022
4,897
4,897
Significant actuarial assumptions Dec 31
2022
2021
Discount rate, %
3.7
0
Salary increases, %
2.0
0
Pension increases, %
2.0
0
The table below presents a sensitivity analysis of the most significant actuarial assumptions. The effect of
change in each assumption is calculated expecting the other assumptions to remain unchanged. In reality,
the changes in assumptions may correlate with each other.
Sensitivity of the defined benefit obligation to changes in the most significant assumptions
Change in assumption
Effect on obligation
Decrease of discount rate by 0.5 percentage points
increase of 5.74 per cent
Increase of discount rate by 0.5 percentage points
decrease of 5.27 per cent
Increase in salaries by 0.5 percentage points
n.a
Increase in benefits by 0.5 percentage points
decrease of 4.21 per cent
42
12 Other operating expenses
EUR 1,000
2022
2021
Software and telecommunication expenses
10,952
9,430
Travel expenses
5,245
3,549
Premises expenses
1,314
1,891
Epenses related to leases of low-value assets
1,181
944
Voluntary personnel expenses
6,699
5,432
Change in credit loss allowance
86
36
Loss on disposals of fixed assets
0
1
Insurances
548
492
Costs related to acquisitions
297
296
Legal services
582
375
Other expenses
9,235
6,080
Total
36,140
28,527
13 Audit fees
EUR 1,000
2022
2021
Auditing, KPMG-network
124
110
Auditor's statements based on laws and regulations, KPMG Oy Ab
7
0
Other services (tax services), KPMG Oy Ab
55
46
Other services (other services), KPMG-network
13
150
Total
199
306
14 Financial income
EUR 1,000
2022
2021
Dividend income from investments
13
9
Interest income from loans and other receivables
100
70
Foreign exchange gain
931
513
Total
1,044
593
43
15 Financial expenses
EUR 1,000
2022
2021
Interest on borrowings
1,150
622
Leasing interest expenses
407
267
Losses on foreign currency derivatives
4,878
0
Other foreign exchange loss
267
266
Other financial expenses
578
325
Total
7,280
1,480
In connection with the Semcon public offer, the Group took a currency hedge for hedging purposes to
protect the possible purchase price from exchange rate fluctuations. The derivative was valued at its fair
value before realization. However, the Semcon public offer was not fulfilled due to a competing purchase
offer, and the currency hedge contract was already realized in the financial year, and thus at the time of
the financial year end date, the Group has no derivative contracts in effect. Therefore, IFRS 9 standard on
hedge accounting has not been applied.
16 Translation differences recognized in income statement
EUR 1,000
2022
2021
Foreign exchange gain included in financial income
931
513
Foreign exchange loss included in financial expenses
-5,146
-266
Total
-4,215
247
17 Income taxes
EUR 1,000
2022
2021
Tax on income from operations
-4,978
-5,793
Tax corrections for previous accounting periods
-1
-47
Change in deferred tax asset
-69
232
Change in deferred tax liability
812
786
Total
-4,235
-4,823
Reconciliation between income taxes in the income statement and the theoretical amount of tax
that would arise using the Group's domestic tax rate (2022: 20.0%, 2021: 20.0%)
EUR 1,000
2022
2021
Accounting profit before tax
22,386
24,867
Income tax expense
Theoretical amount of tax that would arise using the Group's do-
mestic tax rate
-4,477
-4,973
Differences (net)
Effect of different tax rates in Group companies
616
40
Effect of change in tax rate on deferred taxes
-9
38
Calculated tax based on non-deductible items on unit's tax rate
-526
-190
Calculated tax based on non-taxable items on unit's tax rate
342
233
Tax corrections for previous accounting periods
-1
-47
Use of previously unrecognized tax on confirmed losses
3
88
Use of recognized tax on confirmed losses
-36
0
Unrecognized tax on loss for the period
-326
-5
Other tax difference
179
-5
Income tax expense
-4,235
-4,823
44
Tax charge (-) / credit (+) relating to components of other comprehensive income
2022
Before
tax
Tax charge /
credit
After
tax
Change in fair value of equity investments at fair value
through other comprehensive income
-37
7
-30
Currency translation differences
-4,229
0
-4,229
Deferred tax on actuarial gains or losses on defined benefit
1,942
-583
1,359
Other comprehensive income for the year, net of tax
-2,324
-575
-2,899
2021
Before
tax
Tax charge /
credit
After
tax
Change in fair value of equity investments at fair value
through other comprehensive income
40
-8
32
Currency translation differences
-589
0
-589
Other comprehensive income for the year, net of tax
-549
-8
-557
18 Earnings per share
Basic earnings per share is calculated by dividing the profit for the financial year attributable to equity
holders of the parent company by the weighted average number of externally owned shares during the
financial year. The shares to be paid out as rewards of the share-based incentive plan will be transferred
from the shares held by the Company or shares acquired from the market, and therefore the incentive
plan will have no diluting effect on the share value.
2022
2021
Profit attributable to equity holders of the parent company (EUR 1,000)
18,151
20,044
Issue-adjusted weighted average number of shares (1,000 pcs) Jan 1
24,904
24,862
Effect of own shares
0
-31
Effect of shares issued
128
73
Issue-adjusted weighted average number of shares (1,000 pcs) Dec 31
25,032
24,904
Basic earnings per share (EUR/share)
0.73
0.80
Diluted earnings per share (EUR/share)
0.73
0.80
45
Notes to Consolidated Balance Sheet
19 Intangible assets
Goodwill
EUR 1,000
2022
2021
Acquisition cost Jan 1
92,380
83,685
Translation difference
-2,466
-387
Acquisition of subsidiaries (note 5)
15,470
9,082
Book value Dec 31
105,385
92,380
Other intangible assets
2022
EUR 1,000
Intangible
rights
Internally
created in-
tangible
assets
Fair value ad-
justments in
acquisitions*
Leased soft-
ware
Advance
payments
Total
Acquisition cost Jan 1
12,674
2,965
46,056
7,547
273
69,516
Translation difference
-59
0
-572
-35
-1
-667
Acquisition of subsidiaries
154
0
10,890
0
0
11,044
Additions
206
9
0
186
9
411
Disposals
0
0
0
0
0
0
Reclassifications
200
86
0
0
-193
93
Acquisition cost Dec 31
13,175
3,060
56,374
7,698
89
80,396
Cumulative amortization Jan 1
-11,278
-2,690
-20,679
-6,060
0
-40,709
Translation difference
58
0
220
30
0
308
Acquisition of subsidiaries
-24
0
0
0
0
-24
Disposals
0
0
0
0
0
0
Amortization for the financial year
-761
-178
-5,293
-996
0
-7,227
Cumulative amortization Dec 31
-12,004
-2,868
-25,753
-7,027
0
-47,652
Book value Dec 31
1,171
192
30,621
672
89
32,745
2021
EUR 1,000
Intangible
rights
Internally
created in-
tangible
assets
Fair value ad-
justments in
acquisitions*
Leased soft-
ware
Advance
payments
Total
Acquisition cost Jan 1
12,114
2,945
38,362
6,661
129
60,211
Translation difference
141
0
-88
-9
0
44
Acquisition of subsidiaries
7
0
7,782
0
0
7,789
Additions
373
20
0
895
188
1,475
Disposals
-50
0
0
0
0
-50
Reclassifications
90
0
0
0
-44
46
Acquisition cost Dec 31
12,674
2,965
46,056
7,547
273
69,516
Cumulative amortization Jan 1
-10,417
-2,504
-16,306
-4,974
0
-34,200
Translation difference
-139
0
11
7
0
-121
Disposals
41
0
0
0
0
41
Amortization for the financial year
-762
-187
-4,385
-1,094
0
-6,428
Cumulative amortization Dec 31
-11,278
-2,690
-20,679
-6,060
0
-40,709
Book value Dec 31
1,396
274
25,377
1,487
273
28,807
*Valuations of the fair value adjustments in acquisitions consist of acquired customer bases of EUR
30,182 thousand (EUR 24,889 thousand) and non-competition agreements of EUR 439 thousand (EUR
478 thousand).
46
20 Tangible assets
Other
tangible
assets
Right-of-use assets
2022
EUR 1,000
Land and
water
Buildings
Machinery
and equip-
ment
Machinery
and equip-
ment
Premises
Total
Acquisition cost Jan 1
19
495
15,860
1,597
22,061
37,832
77,864
Translation difference
0
0
-113
-1
-215
0
-330
Acquisition of subsidiaries
0
0
509
0
118
1,177
1,804
Additions
0
0
1,185
239
4,157
6,779
12,360
Disposals
0
0
-23
0
-109
-729
-861
Reclassifications
0
0
0
0
0
0
0
Acquisition cost Dec 31
19
495
17,418
1,834
26,011
45,059
90,837
Cumulative depreciation Jan 1
0
-22
-13,111
-1,204
-17,408
-21,360
-53,105
Translation difference
0
0
62
1
161
0
225
Disposals
0
0
3
0
0
0
3
Depreciation for the financial
year
0
-3
-1,133
-289
-3,443
-8,160
-13,028
Cumulative depreciation Dec 31
0
-25
-14,304
-1,491
-20,690
-29,519
-66,030
Book value Dec 31
19
471
3,114
343
5,321
15,539
24,808
Other
tangible
assets
Right-of-use assets
2021
EUR 1,000
Land and
water
Buildings
Machinery
and equip-
ment
Machinery
and equip-
ment
Premises
Total
Acquisition cost Jan 1
19
495
14,386
1,261
18,623
32,554
67,339
Translation difference
0
0
94
5
-47
0
51
Acquisition of subsidiaries
0
0
7
86
23
754
870
Additions
0
0
1,331
245
3,840
5,951
11,366
Disposals
0
0
-1
0
-378
-1,427
-1,806
Reclassifications
0
0
44
0
0
0
44
Acquisition cost Dec 31
19
495
15,860
1,597
22,061
37,832
77,864
Cumulative depreciation Jan 1
0
-11
-12,089
-1,110
-14,436
-13,995
-41,641
Translation difference
0
0
-85
-5
36
0
-55
Disposals
0
0
1
0
0
0
1
Depreciation for the financial
year
0
-11
-938
-88
-3,008
-7,365
-11,410
Cumulative depreciation Dec 31
0
-22
-13,111
-1,204
-17,408
-21,360
-53,105
Book value Dec 31
19
473
2,749
394
4,652
16,472
24,759
47
Tangible and intangible right-of-use assets in total
EUR 1,000
2022
2021
Book value Jan 1
22,611
24,434
Translation difference
-60
-13
Acquisition of subsidiaries
1,295
777
Additions
11,123
10,685
Disposals and reclassifications
-838
-1,805
Depreciation for the financial year
-12,599
-11,467
Book value Dec 31
21,532
22,611
The total cash outflow for leases in the financial year 2022 was EUR 13,986 thousand (2021: EUR 12,702
thousand). Additional information on right-of-use assets and lease liabilities in notes 2.1.1 and 2.14.
21 Financial instruments by measurement category
Financial assets 2022
EUR 1,000
Note
Amortized
cost
Fair value
through OCI
Book value
total
Quoted and unquoted shares
21
2,414
2,414
Trade and other receivables
21,24
57,994
57,994
Cash and cash equivalents
19,564
19,564
Financial assets Dec 31
77,558
2,414
79,972
Financial liabilities 2022
EUR 1,000
Note
Amortized
cost
Fair value
through
profit and
loss
Book value
total
Loans from financial institutions
27
68,991
68,991
Lease liabilities
27
21,592
21,592
Liabilities from acquisitions
5,28
52
52
Trade and other payables
29
14,235
14,235
Financial liabilities Dec 31
104,818
52
104,870
Financial assets 2021
EUR 1,000
Note
Amortized cost
Fair value
through OCI
Book value
total
Quoted and unquoted sha-
res
21
418
418
Trade and other re-
ceivables
24
43,542
43,542
Cash and cash equivalents
30,356
30,356
Financial assets Dec 31
73,898
418
74,316
48
Financial liabilities 2021
EUR 1,000
Note
Amortized cost
Fair value
through profit
and loss
Book value
total
Loans from financial institu-
tions
27
55,803
55,803
Lease liabilities
27
22,670
22,670
Liabilities from acquisitions
5,29
800
800
Trade and other payables
29
13,200
13,200
Financial liabilities Dec 31
91,674
800
92,474
The fair values of financial instruments materially correspond to their book values.
Fair value hierarchy
The tables below analyze financial instruments carried at fair value, by valuation method. The different lev-
els are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly as prices or indirectly, derived from prices.
Level 3: Unobservable inputs that are not based on observable market data.
Financial assets recognized at fair value through OCI
2022
EUR 1,000
Quoted shares
(Level 1)
Premises
shares
(Level 2)
Unquoted
shares and loan
receivables
(Level 3)
Total
Opening balance at Jan 1
275
120
24
418
Ekkono AB investment
0
0
2,034
2,034
Loan given to Ekkono AB
0
0
963
963
Gain/loss recognized in
other comprehensive in-
come
-37
0
0
-37
Disposals
0
0
-1
-1
Closing balance Dec 31
237
120
3,019
3,376
2021
EUR 1,000
Quoted shares
(Level 1)
Premises
shares
(Level 2)
Unquoted
shares and loan
receivables
(Level 3)
Total
Opening balance at Jan 1
235
120
24
378
Gain/loss recognized in
other comprehensive in-
come
40
0
0
40
Closing balance Dec 31
275
120
24
418
Financial assets recognized at fair value through OCI (level 3) consist of an investment in Ekkono Solu-
tions AB in the financial year 2022, which is a Swedish start-up company developing machine learning
and artificial intelligence technology. The investment supports Etteplan’s strategy and goal of bringing
modern technology into Etteplan’s service solutions. The valuation method for shares and loan receiva-
bles is based on completed transactions or the present value of discounted cash flows.
49
Financial liabilities recognized at fair value through profit or loss
Contingent liability in acquisitions (Level 3)
EUR 1,000
2022
2021
Opening balance at Jan 1
800
132
Additions
0
1,209
Revaluation
-767
-409
Payment
0
-132
Closing balance Dec 31
33
800
Additional information regarding contingent liabilities in acquisitions is provided in note 5 Business combi-
nations.
22 Impairment testing
Goodwill is allocated to cash-generating units (CGUs) for determination of impairment. In impairment test-
ing, the recoverable amount is defined as value-in-use. Value-in-use is defined as the discounted esti-
mated future net cash flows generated by the asset or cash-generating unit.
The Group's management has defined the CGUs to be the three service areas in which the Group's oper-
ations are organized.
The impairment test is done in the fourth quarter after budgets for the next year were done and it is based
on goodwill as per September 30. Cash flows after tax are based on budget figures for year one and finan-
cials approved by management for the next five-year period. The management makes estimations on the
market demand and market environment, which are checked against external information sources. When
defining the cash flow, attention is paid to anticipated price and margin development as well as costs, net
working capital and investment needs. The management determines these based on past performance
and expectations for market development.
The discount rate applied to cash flow projections is determined based on the post-tax weighted average
cost of capital (WACC) that depicts the overall costs of shareholders’ equity and liabilities. The discount
rate is based on the weighted average of 30-year government bond rates in the countries where the CGUs
operate. The bond rates are adjusted for the general market risk and the business risk of the CGUs.
The recoverable amount is compared with the book value of the cash-generating unit. An impairment loss
is booked as cost in the income statement if the recoverable amount is lower than the book value. No im-
pairment loss has been booked during the financial year or the comparison year. No impairment losses
have been recorded during the financial period or the comparison period.
Goodwill 30.9.
MEUR
2022
2021
Engineering Solutions
55.3
55.8
Software and Embedded Solutions
35.8
30.8
Technical Documentation Solutions
15.4
6.4
Total
106.5
93.0
50
Key assumptions used for value-in-use calculations
2022
2021
Aggregate growth percentage year 2-5
1.0%
1.0%
Growth rate after 5 years
1.0%
1.0%
Discount rate before tax
Engineering Solutions
11.5%
9.5%
Software and Embedded Solutions
11.7%
9.1%
Technical Documentation Solutions
10.9%
8.9%
Discount rate after tax
Engineering Solutions
9.1%
7.6%
Software and Embedded Solutions
9.5%
7.4%
Technical Documentation Solutions
8.7%
7.1%
The recoverable amount exceeds the book value as follows:
MEUR
2022
2021
Engineering Solutions
122.6
141.1
Software and Embedded Solutions
63.5
94.3
Technical Documentation Solutions
57.3
60.0
Total
243.4
295.4
Sensitivity analysis
In connection with impairment testing, sensitivity analyses were performed using the following variables:
• Zero growth in net sales
• Decrease of profitability (EBIT) by 4 percentage points
• Increase of discount rate by 4 percentage points
According to the management's understanding, realization of the variables used in the sensitivity analysis
would not lead to impairment losses in cash-generating units.
23 Inventory
EUR 1,000
2022
2021
Inventory at the beginning of the financial year
376
336
Additions/Deductions
258
41
Total
635
376
24 Trade and other receivables
EUR 1,000
2022
2021
Trade receivables
55,169
42,896
Credit loss allowance
-394
-359
Other receivables
2,203
951
Prepayments and accrued income
5,428
4,500
Total
62,405
47,988
51
Main items included in prepayments and accrued income
Accruals of employee benefits expenses
53
19
Prepaid rents
497
470
Other prepayments and accrued income on expenses
4,877
4,011
Total
5,428
4,500
Analysis of receivables by currency
EUR
41,028
31,682
SEK
14,286
9,454
CNY
3,321
3,864
PLN
1,094
740
DKK
2,504
1,921
Other currencies
171
327
Total
62,405
47,988
25 Equity
Shareholders’ equity
Shareholders' equity consists of share capital, share premium account, unrestricted equity fund, own
shares, cumulative translation adjustment, other reserves and retained earnings.
Share premium account contains the emission gain from the original stock listing as well as funds raised
in bonus issues.
Unrestricted equity fund includes funds raised in share issues and decided to be recorded in the Unre-
stricted equity fund.
Translation differences contain translation differences arising from the conversion of financial state-
ments of foreign units and the foreign subsidiary net investment hedge. The aggregate amount of the net
investment hedge (EUR 149 thousand) related to the Swedish unit is recorded in the profit and loss state-
ment upon disposal of the unit.
Other reserves include the fair value reserve, which consists of fair value adjustments of investments at
fair value through other comprehensive income amounting to EUR 103 thousand (2021: EUR 133 thou-
sand). The aggregate amount of fair value adjustments are recorded in Retained earnings upon disposal
of the investments.
Share and share capital
Etteplan Oyj has one series of shares. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
The fully paid and registered share capital of the Company at the end of the financial year was EUR
5,000,000 and the number of shares was 25,200,793 (2021: 25,083,308). No changes in share capital oc-
curred during the financial year. The Company has one series of shares. Each share entitles its holder to
one vote in the shareholders' meeting and gives an equal right to dividends.
Shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. The share has no nominal value and
there is no maximum number of shares. All issued shares are fully paid.
Where any Group company purchases the Company’s equity share capital (treasury shares), the consid-
eration paid, including any directly attributable incremental costs (net of income taxes) is deducted from
equity attributable to the Company’s equity holders until the shares are canceled or reissued. Where such
shares are subsequently reissued, any consideration received, net of any directly attributable incremental
transaction costs and the related income tax effects, is included in equity attributable to the equity holders
of the Parent Company.
52
The number of company-held shares at the end of the financial year was 159,046 (2021: 159,046). The
Board of Directors' authorization to acquire and dispose own shares and to increase the share capital
through a rights issue is disclosed in the Board of Directors' review.
A liability is recognized for the amount of any dividend declared, being appropriately authorized and no
longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the
end of the reporting period.
The Board of Directors has proposed to the Annual General Meeting a dividend of EUR 0.36 to be paid
per share for the financial year 2022.
26 Share-based payments
Key personnel incentive plan 2020–2022
The Board of Directors of Etteplan Oyj resolved on February 5, 2020 to establish a new share-based in-
centive plan for the Group key personnel. The aim of the plan is to combine the objectives of the share-
holders and the key personnel in order to increase the value of the Company, to commit the key personnel
to the Company, and to offer them a competitive reward plan based on holding the Company shares. The
Plan includes one earning period which includes the calendar years 2020–2022. The earning period co-
vers the same years as Etteplan’s strategy update published in December 2019. The Plan is in line with
Etteplan’s strategy and supports the achievement of the Company’s financial targets. The earnings criteria
are the Group's revenue increase and the development of Total Shareholder Return (TSR). The potential
reward will be paid partly in the Company's shares and partly in cash after the end of the earning period.
The proportion to be paid in cash is intended to cover taxes and tax-related costs arising from the reward
to the key personnel. Approximately 25 people belong to the Plan, including the Management Group of
Etteplan. The rewards to be paid on the basis of the plan will correspond to the value of an approximate
maximum total of 390,000 Etteplan Oyj shares (including also the proportion to be paid in cash). The
shares to be paid out as potential rewards will be transferred from the shares held by the Company or
shares acquired from the market, and therefore the incentive plan will have no diluting effect on the share
value.
The number of shares expected to be granted to the key personnel at the measurement date was 85,131
(104,049). The fair value of the services provided by the key personnel are determined indirectly from the
fair value of the Company's share. The fair value at the measurement date was EUR 14.77 (17.29). Ex-
pected dividends or any other features of the shares are excluded from the calculation of fair value.
Employee benefits expenses include share-based payments related to the key personnel incentive
plans:
EUR 1,000
2022
2021
To be settled in equity in future financial periods
1,005
819
To be settled in cash in future financial periods
1,379
1,315
Total
2,383
2,134
53
27 Interest-bearing liabilities
Loans from financial institutions
Analysis by currency
EUR 1,000
2022
2021
Non-current loans from financial institutions
EUR
47,852
30,350
Total
47,852
30,350
Current loans from financial institutions
EUR
19,720
23,996
CNY
1,419
1,458
Total
21,139
25,454
Lease liabilities
Analysis by currency
EUR 1,000
2022
2021
Non-current lease liabilities
EUR
6,355
6,187
SEK
1,766
1,980
CNY
357
369
PLN
0
115
DKK
0
124
Total
8,478
8,777
Current lease liabilities
EUR
10,836
11,208
SEK
1,984
1,809
CNY
293
286
PLN
0
500
DKK
0
91
Total
13,114
13,894
28 Other non-current liabilities
EUR 1,000
2022
2021
Liability from acquisitions
0
800
Other non-current liabilities
33
20
Total
33
820
54
29 Trade and other payables
EUR 1,000
2022
2021
Trade payables
14,209
13,180
Accrued liabilities
33,713
33,353
Tax payables
15,532
15,174
Liability from acquisitions
52
0
Other payables
2
-55
Total
63,508
61,652
Main items included in accrued expenses and income
Interest liabilities
307
95
Accrued employee benefits expenses
30,132
29,984
Other accrued expenses and income
3,274
3,273
Total
33,713
33,353
Analysis by currency
EUR
46,266
46,219
SEK
12,942
11,692
CNY
1,913
1,863
PLN
1,344
1,050
DKK
954
773
Other
89
55
Total
63,508
61,652
30 Deferred taxes
Deferred tax assets 2022
Deferred tax assets
EUR 1,000
Jan 1,
2022
Translation
difference
In income
statement
In equity
Acquisitions
Dec 31, 2022
Confirmed loss
134
0
-34
0
0
101
Leases
12
0
0
0
0
12
Share-based incentive plan
345
0
31
0
0
376
Other timing differences
240
0
-67
0
0
173
Total
731
0
-69
0
0
662
55
Deferred tax liabilities
EUR 1,000
Jan 1, 2022
Translation
difference
In income
statement
In equity
Acquisitions
Dec 31, 2022
Discretionary provisions
1,282
-121
325
0
169
1,656
Fair value adjustments in
acquisitions
5,596
-84
-1,199
0
2,622
6,935
Other timing differences
531
0
62
575
0
1,167
Total
7,409
-204
-812
575
2,791
9,758
Deferred taxes 2021
Deferred tax assets
EUR 1,000
Jan 1,
2021
Transla-
tion diffe-
rence
In income
statement
In equity
Acquisiti-
ons
Dec 31, 2021
Confirmed loss
32
0
103
0
0
134
Leases
12
0
0
0
0
12
Share-based incentive plan
211
0
133
0
0
345
Other timing differences
238
0
-4
0
6
240
Total
493
0
232
0
6
731
Deferred tax liabilities
EUR 1,000
Jan 1,
2021
Transla-
tion diffe-
rence
In income
statement
In equity
Acquisiti-
ons
Dec 31, 2021
Discretionary provisions
1,205
-25
103
0
0
1,282
Fair value adjustments in acqui-
sitions
4,876
1
-990
0
1,709
5,596
Other timing differences
422
0
101
8
0
531
Total
6,502
-25
-786
8
1,709
7,409
At the end of the financial year, the Group had gross losses carried forward of EUR 3,290 thousand (2021:
EUR 1,400 thousand), for which a deferred tax asset has not been recognized. These losses are usable to
offset future taxable gains a minimum of five years.
Other notes to the Consolidated Financial Statements
31 Pledges, mortgages and guarantees
EUR 1,000
2022
2021
Business mortgages
320
320
Pledged shares
120
120
Other contingencies
363
418
Total
803
858
32 Related-party transactions
The Group's related parties include such persons that have control, joint control or significant influence
over the Group. Also, the Group's key management personnel are included in the related parties. Key
management personnel refers to persons having authority and responsibility for planning, directing and
controlling the activities of the Group, directly or indirectly, including any director (whether executive or
otherwise) of the Group. Spouses, wards and companies in control or joint control of the aforementioned
persons are considered as other related parties. The ultimate controlling party, Ingman Group Oy Ab, and
its group companies are also included in the related parties. Related-party transactions are priced
56
according to the Group's normal pricing basis and purchase conditions, which are equivalent to those that
prevail in arm’s length transactions.
Group companies Dec 31, 2022
Company
Domicile
Group's / Parent
company's holding
Parent company Etteplan Oyj
Espoo, Finland
Cognitas GmbH
Ottobrunn, Germany
100% / 100%
Etteplan Germany GmbH
Leverkusen, Germany
100% / 100%
Etteplan Finland Oy
Lahti, Finland
100% / 100%
Etteplan Poland sp.z.o.o.
Wroclaw, Poland
100% / 0%
Etteplan Tech Poland S.A.
Katowice, Poland
100% / 0%
Etteplan Sweden AB
Västerås, Sweden
100% / 100%
Etteplan Technology Center Ltd.
Kunshan, China
100% / 0%
Etteplan Consulting (Shanghai) Co., Ltd.
Shanghai, China
100% / 100%
Etteplan B.V.
Eindhoven, the Netherlands
100% / 100%
Etteplan Netherlands B.V.
Eindhoven, the Netherlands
100% / 0%
Etteplan Deutschland GmbH
Neukirchen-Vlyun, Germany
100% / 0%
F.I.T. Fahrzeug Ingenieurtechnik GmbH
Koblenz, Germany
100% / 0%
Etteplan USA Inc.
Austin (TX), USA
100% / 0%
LCA Consulting Oy
Lappeenranta, Finland
100% / 100%
Syncore technologies AB
Linköping, Sweden
100% / 100%
Etteplan Engineering Solutions Netherlands B.V.
Eindhoven, the Netherlands
100% / 100%
MA3 solutions B.V.
Eindhoven, the Netherlands
100% / 0%
Etteplan Denmark A/S
Herlev, Denmark
100% / 100%
The following group companies have been merged in 2022:
Company
Domicile
Merged to
Etteplan Embedded Finland Oy
Espoo, Finland
Etteplan Finland Oy
Etteplan MORE Oy
Tampere, Finland
Etteplan Finland Oy
Adina Solutions Oy
Tampere, Finland
Etteplan Finland Oy
DDCom B.V. (Van Dulmen CAD-Illu-
straties B.V.)
Eindhoven, the Netherlands
Etteplan Netherlands B.V.
BST Buck Systemtechnik GmbH
Brünsbüttel, Germany
Etteplan Germany GmbH
The following transactions were carried out with related parties
EUR 1,000
2022
2021
Sales and purchases of services and related receivables and payables
Sales of services to other related parties
30
94
Purchases of services from other related parties
36
36
Key management compensation
Key management of Etteplan Oyj includes the Board of Directors, CEO and Management Group.
57
Salaries, fees and fringe benefits paid to key management
EUR 1,000
2022
2021
Members of the Board
Robert Ingman, Chairman of the Board
83
85
Matti Huttunen
44
45
Päivi Lindqvist
45
44
Leena Saarinen
46
49
Mikko Tepponen
43
44
CEO and other members of the Management Group
Juha Näkki, salaries and fees paid
749
519
Juha Näkki, statutory pension costs
124
88
Other members of the Management Group, salaries and fees paid
2,324
1 913
Other members of the Management Group, statutory pension costs
434
382
Management compensation total
3,892
3 169
The Annual General Meeting annually resolves the remuneration for the members of the Board of Direc-
tors.
33 Events after the balance sheet date
No material events have occurred in the Group after the balance sheet date that would affect the financial
statements.
58
PARENT COMPANY’S FINANCIAL STATEMENTS
Parent Company’s Income Statement
EUR, financial period Jan 1 - Dec 31 (FAS) Note 2022 2021
Revenue 1 17,992,393.03 16,264,740.16
Other operating income 2 144,871.78 15,186.50
Staff costs 3 -6,163,925.54 -6,299,130.05
Depreciation and amortization 10, 11 -451,578.11 -468,949.71
Other operating expenses 5 -13,557,723.87 -8,503,139.71
Operating profit/loss
Liikevoitto/-tappio
-2,035,962.71 1,008,707.19
Financial income and expenses 6, 7 -1,354,725.10 783,214.75
Profit/loss before appropriations and taxes
-3,390,687.81 1,791,921.94
Appropriations 8 14,922,315.44 12,979,684.03
Income taxes 9 -2,158,396.50 -2,915,562.09
Profit for the financial year
Tilikauden voitto
9,373,231.13 11,856,043.88
59
Parent Company’s Balance Sheet
EUR, Dec 31 (FAS) Note
Liite
2022 2021
ASSETS
Non-current assets
Intangible assets 10 913,174.75 1,208,799.41
Tangible assets 11 180,319.30 168,513.68
Shares in group companies 12 156,916,843.53 140,104,233.19
Other investments 12 2,052,397.84 19,584.11
Non-current receivables 13 7,667,757.27 4,455,000.00
Non-current assets, total 167,730,492.69 145,956,130.39
Current assets
Current receivables 14 21,286,525.70 21,397,130.59
Cash and cash equivalents 15 11,241,985.24 23,717,649.78
Current assets, total 32,528,510.94 45,114,780.37
TOTAL ASSETS 200,259,003.63 191,070,910.76
EQUITY AND LIABILITIES
Equity
Share capital 16 5,000,000.00 5,000,000.00
Share premium account 16 6,701,187.41 6,701,187.41
Unrestricted equity fund 16 24,079,413.43 22,150,309.73
Own Shares 16 -2,064,007.96 -2,064,007.96
Retained earnings 16 27,688,036.68 25,801,697.60
Profit for the financial year 16 9,373,231.13 11,856,043.88
Equity, total 70,777,860.69 69,445,230.66
APPROPRIATIONS 17 359,268.88 281,584.32
Liabilities
Non-current liabilities 18 47,500,000.00 30,800,000.00
Current liabilities 19 81,621,874.06 90,544,095.78
Liabilities, total 129,121,874.06 121,344,095.78
TOTAL EQUITY AND LIABILITIES 200,259,003.63 191,070,910.76
60
Parent Company’s Cash Flow Statements
*In the fiscal year of 2022, the item also includes a realized currency hedging loss of EUR 4.9 million.
EUR, financial period Jan 1 - Dec 31 (FAS) 2022 2021
OPERATING CASH FLOW
Cash receipts from Group companies 18,155,530.23 16,613,860.67
Operating expenses paid -16,470,022.95 -14,373,537.23
Operating cash flow before financial items and taxes 1,685,507.28 2,240,323.44
Interest and payment paid for financial expenses -987,642.08 -450,569.89
Dividends and interest received 4,253,993.05 1,021,447.68
Income taxes paid -2,790,188.81 -3,528,670.85
Operating cash flow (A) 2,161,669.44 -717,469.62
INVESTING CASH FLOW
Purchase of tangible and intangible assets -167,759.07 -261,379.36
Acquisition of subsidiaries -22,951,411.44 -14,325,785.17
Sale of subsidiaries 4,117,079.00 0.00
Purchase of investments -2,032,813.73 0.00
Loans granted to Group companies -2,250,000.00 -2,620,000.00
Loans granted to others -962,757.27 0.00
Change of internal bank account receivables 2,777,444.46 3,897,306.27
Investing cash flow (B) -21,470,217.99 -13,309,858.26
FINANCING CASH FLOW
Proceeds from directed share issue 0.00 1,935,600.00
Purchase of own shares 0.00 -1,381,974.15
Issue of new current loans 12,587,886.33 6,653,482.68
Repayments of current loans* -31,833,642.74 -28,653,482.68
Change of internal bank account liabilities -5,361,566.04 2,163,196.82
Issue of new non-current loans 28,000,000.00 37,500,000.00
Dividend paid -9,969,704.80 -8,460,649.08
Group contribution 13,000,000.00 11,000,000.00
Financing cash flow (C) 6,422,972.75 20,756,173.59
Variation in cash (A+B+C) increase (+) / decrease
(-)
-12,885,575.80 6,728,845.71
Assets at the beginning of the period 23,717,649.78 16,988,804.07
Exchange gains or losses on cash and cash
equivalents
409,846.80 0.00
Assets at the end of the period 11,241,920.78 23,717,649.78
61
NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY
Parent company’s accounting policies
The financial statements of the parent company, Etteplan Oyj, are prepared in accordance with Finnish
accounting and company legislation (FAS).
Etteplan Oyj’s revenue consists of software and management fees from Group companies.
Activated development costs
Development costs that are directly attributable to the design and testing of identifiable and unique soft-
ware products controlled by the Company are recognized as intangible assets when the following criteria
are met:
• it is technically feasible to complete the software product so that it will be available for use
• management intends to complete the software product and use or sell it
• there is an ability to use or sell the software product
• it can be demonstrated how the software product will generate probable future economic benefits
• adequate technical, financial and other resources to complete the development and to use or sell
the software product are available, and
• the expenditure attributable to the software product during its development can be reliably meas-
ured.
Directly attributable costs, which are capitalized as part of the software product, include the software de-
velopment employee costs and an appropriate portion of relevant overheads. Other development expendi-
tures, that do not meet these criteria, are recognized as an expense as incurred. Development costs previ-
ously recognized as an expense are not recognized as an asset in a subsequent period. Computer soft-
ware development costs recognized as assets are amortized over their estimated useful lives.
Measurement of non-current assets
Non-current assets are capitalized in the balance sheet at historical cost less depreciation according to
plan and possible impairment loss. Depreciation according to plan is based on the estimated useful life of
the asset. Land areas are considered to have an unlimited useful life.
The useful lives of other non-current assets are:
software 5 years
computers 3 years
office furniture 5 to 10 years
renovation of premises 5 years
goodwill 5 to 10 years
internally created software 3 to 5 years
Maintenance and repair costs are expensed. Major basic improvement investments are capitalized and
depreciated over their useful life. Capital gains and losses arising on the retirement and sale of non-cur-
rent assets are included either in other operating income or under other operating expenses.
Income taxes
Taxes in the income statement include taxes based on taxable earnings for the financial period as well as
corrections to taxes for previous periods. Taxes based on taxable earnings are calculated using the tax
rate in force at the time of the financial statement.
Pension agreements
Pension security for the employees of the parent company is arranged with external pension insurance
companies. Pension expenses are recorded as expenses in the year in which they are incurred.
Lease agreements
Contractual lease payments are expensed over the lease period.
62
Notes to the Income Statement, parent company
1 Revenue
Revenue consists of sofware and management fees from Etteplan Group companies.
2 Other operating income
3 Number of personnel and staff costs
Employee benefits of the Board of Directors and top management are disclosed in point 32 "Related-party
transactions" of the notes to the consolidated financial statements.
4 Audit fees
EUR 2022 2021
Finland 17,992,393.03 16,264,740.16
EUR 2022 2021
Other operating income 144,871.78 15,186.50
Total 144,871.78 15,186.50
2022 2021
Personnel
Personnel at year-end 69 64
Personnel, average 69 63
Personnel by category
Administration personnel 69 64
Total 69 64
EUR 2022 2021
Staff costs
Wages and salaries 5,231,046.50 5,435,045.10
Pension costs - defined contribution plans 789,778.56 737,100.19
Other indirect employee costs 143,100.48 126,984.76
Total 6,163,925.54 6,299,130.05
EUR 2022 2021
Auditing, KPMG Oy Ab 49,865.00 38,712.00
Auditor's statements based on laws and regulations, KPMG Oy Ab 7,220.00 4,729.00
Other services (tax services), KPMG Oy Ab 54,531.00 37,725.00
Other services (other services), KPMG Oy Ab 0.00 8,175.00
Total 111,616.00 89,341.00
63
5 Other operating expenses
During the fiscal year of 2022, the company has sold the shares of Etteplan Tech Poland s.a. to the sub-
sidiary Etteplan Finland Oy. The sale of the shares resulted in a sales loss of EUR 3,184 thousand.
6 Financial income
7 Financial expenses
The realized currency hedging loss related to the preparation of the Semcon deal, EUR 4.9 million, had a
significant negative impact on financing items.
8 Appropriations
9 Income taxes
EUR 2022 2021
Leasing and rents 1,897,367.41 1,884,930.21
IT costs 4,557,941.41 4,143,909.68
Services from Group companies 941,097.84 620,343.49
Loss on disposal of subsidiary shares 3,183,643.80 0.00
Other operating expenses 2,977,673.41 1,853,956.33
Total 13,557,723.87 8,503,139.71
EUR 2022 2021
Intra-Group dividend income 4,205,452.42 1,000,000.00
Dividend and interest income from others 47,070.63 9,937.15
Interest and other financial income, Intra-Group 48,428.95 39,575.11
Foreign exchange gain 428,618.28 180,814.73
Total 4,729,570.28 1,230,326.99
EUR 2022 2021
Intra-Group interest expense 140,342.02 -1,982.74
Interest expense on borrowings from others 1,026,939.49 433,447.82
Foreign exchange loss 4,917,013.87 15,647.16
Total 6,084,295.38 447,112.24
EUR 2022 2021
Group contributions received 15,000,000.00 13,000,000.00
Increase (-) / decrease (+) in depreciation in excess of plan -77,684.56 -20,315.97
Total 14,922,315.44 12,979,684.03
EUR 2022 2021
Tax on income from operations 2,158,982.85 2,914,500.99
Tax corrections for previous accounting periods -586.35 1,061.10
Total 2,158,396.50 2,915,562.09
64
Notes to the Balance Sheet, parent company
10 Intangible assets, parent company
2022
EUR
Intangible
rights
Other intangible
assets
Advance
payments
Goodwill Total
Acquisition cost Jan 1 5,630,786.76 153,010.00 76,550.00 2,499,728.53 8,360,075.29
Additions 114,624.91 0.00 0.00 0.00 114,624.91
Reclassifications between items 76,550.00 0.00 -76,550.00 0.00 0.00
Acquisition cost Dec 31 5,821,961.67 153,010.00 0.00 2,499,728.53 8,474,700.20
Cumulative amortization Jan 1 -5,259,653.13 -153,010.00 0.00 -1,738,612.75 -7,151,275.88
Amortization for the financial year -198,168.51 0.00 0.00 -212,081.06 -410,249.57
Cumulative amortization Dec 31 -5,457,821.64 -153,010.00 0.00 -1,950,693.81 -7,561,525.45
Book value Dec 31 364,140.03 0.00 0.00 549,034.72 913,174.75
2021
EUR
Intangible
rights
Other intangible
assets
Advance
payments
Goodwill Total
Acquisition cost Jan 1 5,514,413.35 153,010.00 0.00 2,499,728.53 8,167,151.88
Additions 116,373.41 0.00 76,550.00 0.00 192,923.41
Acquisition cost Dec 31 5,630,786.76 153,010.00 76,550.00 2,499,728.53 8,360,075.29
Cumulative amortization Jan 1 -5,033,395.99 -153,010.00 0.00 -1,526,531.70 -6,712,937.69
Amortization for the financial year -226,257.14 0.00 0.00 -212,081.05 -438,338.19
Cumulative amortization Dec 31 -5,259,653.13 -153,010.00 0.00 -1,738,612.75 -7,151,275.88
Book value Dec 31 371,133.63 0.00 76,550.00 761,115.78 1,208,799.41
65
11 Tangible assets, parent company
12 Investments, parent company
2022
EUR
Machinery and
equipment
Other tangible
assets
Total
Acquisition cost Jan 1 1,350,058.59 64,437.14 1,414,495.73
Additions 52,584.66 549.50 53,134.16
Acquisition cost Dec 31 1,402,643.25 64,986.64 1,467,629.89
Cumulative depreciation Jan 1 -1,189,597.08 -56,384.97 -1,245,982.05
Depreciation for the financial year -39,427.87 -1,900.67 -41,328.54
Cumulative depreciation Dec 31 -1,229,024.95 -58,285.64 -1,287,310.59
Book value Dec 31 173,618.30 6,701.00 180,319.30
2021
EUR
Machinery and
equipment
Other tangible
assets
Total
Acquisition cost Jan 1 1,288,155.80 58,580.84 1,346,736.64
Additions 61,902.79 5,856.30 67,759.09
Acquisition cost Dec 31 1,350,058.59 64,437.14 1,414,495.73
Cumulative depreciation Jan 1 -1,159,872.89 -55,497.64 -1,215,370.53
Depreciation for the financial year -29,724.19 -887.33 -30,611.52
Cumulative depreciation Dec 31 -1,189,597.08 -56,384.97 -1,245,982.05
Book value Dec 31 160,461.51 8,052.17 168,513.68
2022
EUR
Shares in Group
companies
Other
investments
Total
Acquisition cost Jan 1 140,104,233.19 19,584.11 140,123,817.30
Increases 24,880,515.14 2,032,813.73 26,913,328.87
Decreases -8,067,904.80 0.00 -8,067,904.80
Acquisition cost Dec 31 156,916,843.53 2,052,397.84 158,969,241.37
Book value Dec 31 156,916,843.53 2,052,397.84 158,969,241.37
66
The parent company's direct holdings in Group companies are listed in point 32 "Related-party transac-
tions" of the notes to the consolidated financial statements.
13 Non-current receivables
14 Current receivables
15 Cash and cash equivalents
Cash and cash equivalents in the balance sheet correspond with the financial assets in the cash flow
statement.
2021
EUR
Shares in Group
companies
Other
investments
Total
Acquisition cost Jan 1 125,109,901.58 19,584.11 125,129,485.69
Increases 14,994,331.61 0.00 14,994,331.61
Acquisition cost Dec 31 140,104,233.19 19,584.11 140,123,817.30
Book value Dec 31 140,104,233.19 19,584.11 140,123,817.30
EUR 2022 2021
Non-current receivables
Loan receivables from Group companies 6,705,000.00 4,455,000.00
Loan receivables from Others 962,757.27 0.00
Non-current receivables, total 7,667,757.27 4,455,000.00
EUR 2022 2021
Current receivables from Group companies
Trade receivables 2,192,259.74 2,116,964.61
Internal bank account receivables 0.00 2,777,444.46
Group contribution receivables 15,000,000.00 13,000,000.00
Other receivables 1,493,228.78 1,556,088.52
Current receivables from others
Current prepayments and accrued income 1,845,011.90 1,822,400.66
Tax receivables 756,008.88 124,216.57
Other short-term receivables 16.40 0.02
Current receivables, total 21,286,525.70 21,397,130.59
Main items included in prepayments and accrued income
Prepayments of IT costs 1,699,619.55 1,530,999.49
Other prepayments and accrued income on expenses 145,392.35 291,401.17
Total 1,845,011.90 1,822,400.66
EUR 2022 2021
Bank accounts and cash 11,241,985.24 23,717,649.78
Total 11,241,985.24 23,717,649.78
67
16 Equity
Additional information regarding the shares is presented in point 25 "Shares and share capital" of the
notes to the consolidated financial statements.
17 Accumulated appropriations
EUR 2022 2021
Restricted equity
Share capital Jan 1 5,000,000.00 5,000,000.00
Share capital Dec 31 5,000,000.00 5,000,000.00
Share premium account Jan 1 6,701,187.41 6,701,187.41
Share premium account Dec 31 6,701,187.41 6,701,187.41
Restricted equity, total 11,701,187.41 11,701,187.41
Unrestricted equity
Unrestricted equity fund Jan 1 22,150,309.73 20,214,709.73
Share issue 1,929,103.70 1,935,600.00
Unrestricted equity fund Dec 31 24,079,413.43 22,150,309.73
Treasury shares Jan 1 -2,064,007.96 -682,033.81
Additions 0.00 -1,381,974.15
Share-based incentive plan 0.00 0.00
Share based payments in acquisitions 0.00 0.00
Treasury shares Dec 31 -2,064,007.96 -2,064,007.96
Retained earnings Jan 1 37,657,741.48 34,262,346.68
Dividends paid -9,969,704.80 -8,460,649.08
Share-based incentive plan 0.00 0.00
Retained earnings Dec 31 27,688,036.68 25,801,697.60
Profit for the financial year 9,373,231.13 11,856,043.88
Unrestricted equity total 59,076,673.28 57,744,043.25
Shareholders' equity, total 70,777,860.69 69,445,230.66
Distributable funds Dec 31
Retained earnings 27,688,036.68 25,801,697.60
Treasury shares -2,064,007.96 -2,064,007.96
Unrestricted equity fund 24,079,413.43 22,150,309.73
Profit for the financial year 9,373,231.13 11,856,043.88
Distributable funds Dec 31 59,076,673.28 57,744,043.25
Number of shares Jan 1 (1,000 pcs)
25,201 25,083
Number of shares Dec 31 (1,000 pcs)
25,201 25,083
EUR 2022 2021
Depreciation in excess of plan
359,268.88 281,584.32
Total 359,268.88 281,584.32
68
18 Non-current liabilities
19 Current liabilities
20 Pledged, mortgages and guarantees
Loan guarantees on behalf of subsidiaries
Etteplan Oyj has given a Parent Company guarantee totaling EUR 141 thousand for loans, of which EUR
0 is in use, for Etteplan Poland sp.z.o.o.
EUR 2022 2021
Loans from financial institutions 47,500,000.00 30,000,000.00
Accrued liabilities on acquisitions 0.00 800,000.00
Total 47,500,000.00 30,800,000.00
EUR 2022 2021
Current liabilities to group companies
Trade payables 112,095.42 96,253.17
Other payables 0.00 0.00
Internal bank account liabilities 55,339,680.05 60,701,246.09
Current liabilities to others
Trade payables 1,693,188.72 1,759,882.56
Other liabilities 375,163.44 365,643.18
Accrued expenses 4,436,392.55 4,121,070.78
Income tax liability 0.00 0.00
Accrued liability on acquisitions 32,818.00 0.00
Loans from financial institutions 19,632,535.88 23,500,000.00
Current liabilities total 81,621,874.06 90,544,095.78
Main items included in accrued expenses
Interest liabilities 239,665.22 55,349.31
Accrued employee expenses 3,628,902.15 3,657,281.71
Other accrued expenses 567,825.18 408,439.76
Total 4,436,392.55 4,121,070.78
EUR 2022 2021
Guarantees given
Other contingencies 319,557.04 319,557.04
Guarantees for Group companies 186,074.65 155,198.61
Finance Lease liabilities
For payment in next financial year 2,500,609.19 2,995,183.54
For payment later 2,284,554.58 2,680,345.60
Operating Lease liabilities
For payment in next financial year 596,800.00 556,216.00
For payment later 173,165.00 707,143.27
Credit limits
Total credit limit available 6,615,668.18 8,438,953.01
Pledges, mortgages and guarantees total 12,676,428.64 15,852,597.06
69
Signature of Financial Statements
On December 31, 2022, the parent company’s distributable shareholders’ equity amounted to EUR 59.1
million, of which the net profit for the financial year was EUR 9.4 million.
The Board of Directors proposes that, from the distributable funds at the disposal of the Annual General
Meeting, a dividend of EUR 0.36 per share be paid on the Company’s externally owned shares, for a max-
imum amount of EUR 9.1 million. The dividend will not be paid out to shares that are company-held on the
record date of the dividend payout, April 11, 2023.
No substantial changes have occurred in the financial position of the Company since the end of the finan-
cial year. The Company’s liquidity is good and the Board of Directors judges that the proposed distribution
of dividend will not endanger the Company’s solvency.
It is proposed that the dividend be paid on April 18, 2023.
Espoo, February 16, 2023
Robert Ingman Matti Huttunen Päivi Lindqvist
Chairman of the Board Member of the Board Member of the Board
Leena Saarinen Mikko Tepponen
Member of the Board Member of the Board jäsen
Juha Näkki
CEO
Auditor’s note
A report on the audit performed has been issued today.
Helsinki, February 28, 2023
KPMG Oy Ab
Kim Järvi
Authorised Public Accountant, KHT
70
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of Etteplan Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Etteplan Oyj (business identity code 0545456-2) for the year
ended December 31, 2022. The financial statements comprise the consolidated statement of financial po-
sition, statement of comprehensive income, statement of changes in equity, statement of cash flows and
notes, including a summary of significant accounting policies, as well as the parent company’s balance
sheet, income statement, statement of cash flows and notes.
In our opinion
— the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU
— the financial statements give a true and fair view of the parent company’s financial performance and
financial position in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent com-
pany and group companies are in compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of
regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 13 to
the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based
on our professional judgement and is used to determine the nature, timing and extent of our audit proce-
dures and to evaluate the effect of identified misstatements on the financial statements as a whole. The
level of materiality we set is based on our assessment of the magnitude of misstatements that, individually
or in aggregate, could reasonably be expected to have influence on the economic decisions of the users of
the financial statements. We have also taken into account misstatements and/or possible misstatements
that in our opinion are material for qualitative reasons for the users of the financial statements.
71
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. The significant risks of material misstatement referred to in the EU Reg-
ulation No 537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration
of whether there was evidence of management bias that represented a risk of material misstatement due to
fraud.
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN THE
AUDIT
Valuation of goodwill – Accounting Policies and Note 22 to the Consolidated Financial State-
ments
— Goodwill, totaling EUR 105.4 million, has in-
creased by EUR 13.0 million during the fi-
nancial period as a result of acquisitions, and
is a significant individual item in the consoli-
dated balance sheet.
— Goodwill is tested for impairment when indi-
cators of impairment exist, or at least annu-
ally. Goodwill impairment testing is con-
ducted by comparing the carrying value with
the recoverable amount using a discounted
cash flow model. Estimating future cash
flows underlying the impairment tests in-
volves a significant element of management
judgment, particularly in respect of growth in
net sales, profitability and discount rates.
— Valuation of goodwill is considered a key au-
dit matter due to the significant carrying
value and high level of management judge-
ment involved.
— We critically analyzed the management's as-
sumptions that form the basis on which the
cash flow projections for future years are pre-
pared.
— We involved KPMG valuation specialists to
assess the appropriateness of the discount
rate used and the technical integrity of calcu-
lations as well as for comparison of the as-
sumptions used to the market and industry-
specific data.
— In addition, we assessed the adequacy of the
sensitivity analyses and the appropriate
presentation of notes related to impairment
tests in the consolidated financial state-
ments.
72
Revenue Recognition – Accounting Policies and Note 7 to the Consolidated Financial State-
ments
— Revenue recognition consists mainly of rev-
enue from rendering of services. Total reve-
nue amounted to EUR 350.2 million.
— Revenue recognition is a key audit matter
due to the significance of revenue when as-
sessing the size of business, growth and
profitability of Etteplan. Revenue recognition
involves a risk of revenue being recognized
in the incorrect period and at inaccurate
amount due to related management esti-
mates and large volumes of transaction
data.
— For projects, where either a fixed price or a
target price has been determined, revenue is
recognized over time based on the percent-
age of completion method. The percentage
of completion is determined as the propor-
tion of actual costs to the total estimated pro-
ject costs. Inaccurate cost estimates lead to
erroneous revenue recognition.
— We evaluated the company’s revenue
recognition and accounting policies by refer-
ence to the principles of revenue recognition
determined under IFRS.
— We tested the effectiveness of key internal
controls in place over the completeness and
accuracy of revenue. We also assessed the
operative effectiveness of relevant IT sys-
tems for financial reporting purposes.
— We compared total revenue estimates to
customer contracts for projects where reve-
nue is recognized over time based on the
project’s percentage of completion. In addi-
tion, we analyzed working hours recorded
for work in progress projects in comparison
to total hours estimated by the manage-
ment. We also considered the appropriate-
ness of the process for updating estimated
project costs and percentages of comple-
tion.
— In addition, we performed substantive audit
procedures to evaluate the completeness
and accuracy of revenue recorded and as-
sessed the effect of other events which re-
quire management judgment.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated finan-
cial statements that give a true and fair view in accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU, and of financial statements that give a true and fair view in accordance with
the laws and regulations governing the preparation of financial statements in Finland and comply with stat-
utory requirements. The Board of Directors and the Managing Director are also responsible for such internal
control as they determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as ap-
plicable, matters relating to going concern and using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of accounting unless there is an intention to liquidate
the parent company or the group or cease operations, or there is no realistic alternative but to do so.
73
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit con-
ducted in accordance with good auditing practice will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and main-
tain professional skepticism throughout the audit. We also:
— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti-
mates and related disclosures made by management.
— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the
going concern basis of accounting and based on the audit evidence obtained, whether a material un-
certainty exists related to events or conditions that may cast significant doubt on the parent company’s
or the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the financial state-
ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the parent company or the group to cease to continue as a going concern.
— Evaluate the overall presentation, structure and content of the financial statements, including the dis-
closures, and whether the financial statements represent the underlying transactions and events so
that the financial statements give a true and fair view.
— Obtain sufficient appropriate audit evidence regarding the financial information of the entities or busi-
ness activities within the group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely re-
sponsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other mat-
ters that may reasonably be thought to bear on our independence, and where applicable, related safe-
guards.
74
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
KPMG Oy Ab was first appointed as auditors by the Annual General Meeting on April 4, 2017, and our
appointment represents a total period of uninterrupted engagement of 6 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other in-
formation comprises the report of the Board of Directors and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report thereon. We have obtained the report
of the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be
made available to us after that date. Our opinion on the financial statements does not cover the other infor-
mation.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the
financial statements and the report of the Board of Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Helsinki, February 28, 2023
KPMG OY AB
KIM JÄRVI
Authorized Public Accountant, KHT
75
Independent Auditor’s Reasonable Assurance Report on Etteplan Oyj’s ESEF Financial
Statements
To the Board of Directors of Etteplan Oyj
We have undertaken a reasonable assurance engagement in respect of whether the consolidated finan-
cial statements for the year ended 31 December, 2022 included in the digital financial statements
7437006I5533R06JU690-2022-12-31-en.zip of Etteplan Oyj (Business ID 0545456-2) have been marked
up with iXBRL markups in accordance with the requirements of Article 4 of EU Delegated Regulation
2018/815 (ESEF RTS).
The Responsibility of the Board of Directors and Managing Director
The Board of Directors and Managing Director are responsible for preparing the report of the Board of Di-
rectors and financial statements (ESEF financial statements) that comply with the requirements of ESEF
RTS. This responsibility includes:
— preparation of ESEF financial statements in XHTML format in accordance with Article 3 of the ESEF
RTS
— marking up the primary statements and the notes to the consolidated financial statements, and the
company identification data included in the ESEF financial statements with iXBRL tags in accordance with
Article 4 of the ESEF RTS; and
— ensuring consistency between ESEF financial statements and audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they
deem necessary to prepare the ESEF financial statements in accordance with the requirements of the
ESEF RTS.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements applicable in Finland,
which apply to the engagement we have performed, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
The auditor applies International Standard on Quality Management ISQM 1, which requires the firm to de-
sign, implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulations require-
ments.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsibility is to express an opinion on whether the
marking up of the consolidated financial statements included in the ESEF financial statements comply in
all material respects with the Article 4 of the ESEF RTS. We conducted our reasonable assurance
engagement in accordance with International Standard on Assurance Engagements 3000.
The engagement involves procedures to obtain evidence whether;
— the primary statements of the consolidated financial statements included in the ESEF financial state-
ments are, in all material respects, marked up with iXBRL tags in accordance with Article 4 of the ESEF
RTS, and;
— whether the notes to the consolidated financial statements and the company identification data included
in the ESEF financial statements data, have been marked up, in all material respects, with iXBRL tags in
accordance with Article 4 of the ESEF RTS; and
— whether the ESEF financial statements and the audited financial statements are consistent with each
other.
76
The nature, timing and the extent of procedures selected depend on practitioner’s judgement. This in-
cludes the assessment of the risks of material departures from the requirements set out in the ESEF RTS,
whether due to fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the primary statements of the consolidated financial statements, the notes to the consoli-
dated financial statements and the company identification data included in the ESEF financial statements
of Etteplan Oyj identified as 7437006I5533R06JU690-2022-12-31-en.zip for the year ended 31 December,
2022 are, in all material respects, marked up in compliance with the ESEF Regulatory Technical Stand-
ard.
Our audit opinion on the audit of the consolidated financial statements of Etteplan Oyj for the year ended
31 December, 2022 is set out in our Auditor’s Report dated 28 February, 2023. In this report, we do not
express any audit opinion or other assurance conclusion on the consolidated financial statements.
Helsinki, 10 March, 2023
KPMG OY AB
Kim Järvi
Authorised Public Accountant, KHT
77
List of accounting books and types of vouchers
Accounting books
Journal electronically
General Ledger electronically
Invoice journal, purchase ledger electronically
Payment journal, purchase ledger electronically
Invoice journal, accounts receivable ledger electronically
Payment journal, accounts receivable ledger electronically
Financial Statements and Board of Directors’ review electronically
Vouchers
Voucher type Storage
Asset electronically
Customer Payment electronically
Vendor Invoice electronically
Expense electronically
General electronically
Intercopany Vendor Invoice electronically
Invoice electronically
Manual electronically
Mileage electronically
Project Journal electronically
Project Reallocation electronically
Project Revenue Recognition electronically
Tax Settlement electronically
Time electronically
Vendor Payment electronically
Notes Vouchers electronically
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