XHEL:ETTE ESEF Annual Report
Etteplan Oyj (XHEL:ETTE)
ESEF Annual Report
2022-03-11
For: 2021-12-31
View Original
Added on
September 26, 2026
Financial Review
2021
Content
Board of Directors’ Review January 1–December 31, 2021 3
Consolidated Financial Statements 11
Consolidated statement of comprehensive income 11
Consolidated statement of financial position 12
Consolidated statement of cash flows 13
Consolidated statement of changes in equity 14
Notes to the consolidated financial statements 15
1 GENERAL INFORMATION 15
2 A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 15
3 CRITICAL ACCOUNTING ESTIMATES AND MANAGEMENT
JUDGMENT BASED DECISIONS 24
4 MANAGEMENT OF FINANCIAL RISKS 25
5 BUSINESS COMBINATIONS 28
6 SEGMENT REPORTING 31
7 REVENUE FROM CONTRACTS WITH CUSTOMERS 32
8 OTHER OPERATING INCOME 33
9 NON-RECURRING ITEMS 33
10 MATERIALS AND SERVICES 33
11 NUMBER OF PERSONNEL AND STAFF COSTS 34
12 OTHER OPERATING EXPENSES 34
13 AUDIT FEES 34
14 FINANCIAL INCOME 35
15 FINANCIAL EXPENSES 35
16 TRANSLATION DIFFERENCES RECOGNIZED IN
INCOME STATEMENT 35
17 INCOME TAXES 35
18 EARNINGS PER SHARE 36
19 INTANGIBLE ASSETS 36
20 TANGIBLE ASSETS 38
21 FINANCIAL INSTRUMENTS BY MEASUREMENT CATEGORY 39
22 IMPAIRMENT TESTING 40
23 INVENTORY 41
24 TRADE AND OTHER RECEIVABLES 42
25 EQUITY 42
26 SHARE-BASED PAYMENTS 43
27 INTEREST-BEARING LIABILITIES 43
28 OTHER NON-CURRENT LIABILITIES 44
29 TRADE AND OTHER PAYABLES 44
30 DEFERRED TAXES 44
31 PLEDGES, MORTGAGES AND GUARANTEES 45
32 RELATED-PARTY TRANSACTIONS 45
33 EVENTS AFTER THE BALANCE SHEET DATE 47
34 KEY FIGURES FOR FINANCIAL TRENDS 47
35 KEY FIGURES FOR SHARES 48
36 FORMULAS FOR THE KEY FIGURES 49
Parent Company's Financial Statements
51
Shares and shareholders
61
Board of Directors’ dividend proposal
65
Auditor’s Report
66
Investor information
72
FINANCIAL REVIEW | 2BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Board of Directors’
review January
1—December 31, 2021
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 and climate change are all influencing companies, national economies 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 resources. These
trends are creating a need for intelligent and 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 continued trend of service
outsourcing has a positive effect on the industry’s development and it supports Etteplan’s growth. As the
market situation improves, competition for employees and specialized experts in certain areas is becoming
tighter and affecting 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 prolongation of the COVID-19 pandemic continues to have an impact on the market
situation and supply chains. Travel restrictions in various countries, which can change quickly, influence
business operations to some degree.
Our industrial customers have adapted to the prevailing situation and our customers’ business
operations are developing favorably. For this reason, we expect the demand situation to remain fairly good
throughout 2022.
Development of demand by customer industry
The pandemic continues to affect demand in all customer industries, but the effects of the pandemic on
different customer segments vary. Demand in the Forest, Pulp and Paper industry was at a fairly good level.
Demand in the Energy industry was at a good level. Demand in the Mining industry was at a good level.
Demand in the Lifting and Hoisting industry was at a good level. Demand in the ICT industry remained good.
Demand in the Automotive and Transportation industry was at a moderate level. Demand in the Chemical
industry was at a good level.
Development of demand in Etteplan’s operating countries
The pandemic continued to affect the market situation in many European countries. In Finland, the overall
market situation remained fairly good, although the pandemic affected demand and increaseduncertainty.
In final quarter of 2021, the euro-denominated value of new orders received by the technology
industry companies was 40 percent higher than in the third quarter and 4 percent higher than in the
corresponding period the previous year. Based on the orders during the latter part of 2021, it is estimated
that revenue in the beginning of 2022 will be higher compared to the corresponding period last year.
Market uncertainty also affected demand slightly in Sweden, Denmark, the Netherlands, Germany and
Poland. The demand situation in China remained good in spite of uncertainty in the construction industry.
Revenue
Etteplan’s revenue grew by 15.6 percent and was EUR 300.1 million (2020: EUR 259.7 million). At comparable
exchange rates, revenue increased by 14.7 percent. Organic growth was 8.9 percent. At comparable
exchange rates, organic growth was 8.0 percent. Revenue from key accounts grew by 6.6 percent.
During the year, we continued our investments in organic growth by recruiting personnel and
establishing new teams. The use of subcontractors increased especially in the software business.
Previously completed acquisitions and outsourcing agreements had a positive effect on our development.
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
FINANCIAL REVIEW | 3BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
The Group’s cash and cash equivalents stood at EUR 30.4 (24.4) million at the end of December.
The Group’s interest-bearing liabilities amounted to EUR 78.5 (65.0) million at the end of December.
A loan withdrawn in December 2021 for the purpose of the Cognitas GmbH acquisition carried out at the
beginning of 2022 contributed to the increase in interest-bearing liabilities. Lease liabilities represented EUR
22.7 (24.5) million of interest-bearing liabilities.
The total of unused short-term credit facilities stood at EUR 14.5 (16.5) million.
Total assets on December 31, 2021, were EUR 253.0 (217.9) million. Goodwill on the balance sheet
was EUR 92.4 (83.7) million.
At the end of December, the equity ratio was 39.7 (40.5) percent.
Capital expenditure
The Group’s gross investments were EUR 30.6 (29.7) million. The gross investments mainly consisted of
acquisition-related items, increases in lease liabilities and equipment purchases.
Personnel
The number of personnel stood at 3,629 employees at the end of December 2021 (2020: 3,267 employees).
The number of personnel increased by 11.1 percent compared to the end of 2020.
The Group employed 3,480 (3,320) people on average in 2021.
The number of people employed by the Group outside of Finland increased and stood at 1,624 (1,351)
at the end of December.
At the end of December 2021, 13 employees were temporarily laid off. The number of temporarily laid
off employees in Finland, Sweden and Germany was 165 at the end of 2020. Part of the temporary layoffs
were implemented as part-time layoffs.
At this stage of the pandemic, the new year began with employees mostly working remotely in
all of our operating countries. We expect our personnel to return partly to in-office work when the
pandemic stabilizes, but remote work will remain a part of our flexible work model. We have invested in
the management and development of remote work and we will benefit from these investments as business
settles into the new normal when the pandemic abates.
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.
The revenue of acquired companies is not included in the organic growth of revenue for the 12
months following the acquisition. TekPartner A/S increased revenue starting from January 1, 2021, F.I.T.
Fahrzeug Ingenieurtechnik GmbH starting from May 1, 2021, Skyrise.tech S.A. starting from June 1, 2021,
Adina Solutions Oy starting from August 1, 2021, and BST Buck Systemtechnik GmbH starting from October
1, 2021. Cognitas GmbH and Syncore Technologies AB, which were acquired at the beginning of 2022, will
be included in Etteplan’s figures starting from January 1 and February 1, 2022, respectively.
Result
Profitability for the full year was at a good level, in line with our targets, thanks to good operational
efficiency. Investments in organic growth, such as establishing new teams, had an effect on profitability.
Operating profit (EBITA) improved by 15.2 percent and was EUR 30.1 (26.2) million, or 10.0 (10.1)
percent of revenue.
Operating profit (EBIT) improved by 15.1 percent and was EUR 25.8 (22.4) million, or 8.6 (8.6)
percent of revenue.
The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) was
EUR -0.7 (-0.9) million. The non-recurring costs were related to acquisitions and organizational restructuring.
Financial expenses amounted to EUR 1.5 (1.7) million.
Profit before taxes was EUR 24.9 (21,1) million. Taxes in the income statement amounted to 19.4 (19.0)
percent of the result before taxes. The amount of taxes was EUR 4.8 (4.0) million.
The profit for the financial year was EUR 20.0 (17.1) million.
Basic earnings per share were EUR 0.80 (0.69). Equity per share was EUR 3.97 (3.50) at the end of
December. Return on capital employed (ROCE) before taxes was 16.0 (16.0) percent.
Cash flow and financial position
Operating cash flow was EUR 27.1 (38.0) million. Cash flow after investments was EUR 10.8 (30.5) million.
Operating cash flow was exceptionally strong in 2020 due to pandemic-related adjustment measures. In
2021, growth tied up capital and affected the accrual of operating cash flow.
FINANCIAL REVIEW | 4BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Business review
Etteplan published its renewed strategy, Increasing value for customers, and updated its financial targets
in December 2019. Etteplan began preparations and planning related to the renewed strategy, but many
projects were suspended due to attention being shifted to the COVID-19 pandemic. Measures aimed at
implementing the strategy have continued again after the pandemic eased up slightly starting from late
2020. In 2021, investments in organic growth were continued by developing the service offering and by
establishing several new teams. We believe that our strategy will drive the success of the Company also after
the pandemic.
The key objective of the Company’s strategy 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
software development with the aim of expanding its service offering and competence capital in order to
respond 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
strengthening our expertise in areas such as additive manufacturing, digital twin solutions, artificial
intelligence and other digital technologies.
Etteplan’s target is to achieve revenue of EUR 500 million in 2024. We seek growth organically and by
acquisitions. Etteplan’s goal is to also grow internationally, provide solutions from all of the Company’s service
areas in all of its market areas and increase the share of revenue accumulated outside Finland to 50 percent.
Revenue accumulated outside Finland amounted to EUR 130.1 (100.4) million, or 43 (39) percent of the
Group’s total revenue.
The development of the Chinese market was excellent, with the number of hours sold increasing by
57.0 percent. Etteplan strengthened its presence in the Chinese market and opened its tenth office in the
megacity of Nanjing. Nanjing is the capital of Jiangsu province and the second-largest city in the East China
region in terms of population. Expansion in East China responds to the growing demand for Etteplan’s
services among local customers in the region in particular.
Etteplan’s target is to increase the share of revenue represented by Managed Services to 75 percent.
The share of revenue represented by Managed Services remained unchanged and stood at 63 (61) percent.
The growth in the share of Managed Services enhances Etteplan’s capacity management and improves
profitability. Etteplan has achieved its operating profit (EBITA) target, 10 percent of revenue, for two
consecutive years now.
Acquisitions
In September 2021, Etteplan acquired the Germany-based company BST Buck Systemtechnik GmbH. The
company specializes in Software Development, Process Automatization & Hardware Engineering and
employs slightly more than 30 specialists.
In August 2021, Etteplan strengthened its know-how in the technical documentation of software by
acquiring Adina Solutions Oy from Finland. Adina Solutions Oy employs a total of 13 content producers and
technical communications professionals.
In June 2021, Etteplan acquired the Polish software development company Skyrise.tech. S.A. In
2020, Skyrise.tech’s revenue amounted to approximately EUR 3.5 million and it employs approximately
80 specialists and partners. The acquisition involves a directed share issue to the owners of the acquired
company. Read more under the topic Shares.
In May 2021, Etteplan strengthened its position in the technical documentation market in Germany by
acquiring F.I.T. Fahrzeug Ingenieurtechnik GmbH. The company employs approximately 15 specialists.
In January 2021, Etteplan acquired the Denmark-based software development company TekPartner
A/S. The company’s revenue in 2019 amounted to approximately EUR 8 million and it delivers its services
through a combination of its own team of 19 highly qualified professionals and a network of partners.
FINANCIAL REVIEW | 5BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Governance
Simplifying the Group structure
As a result of acquisitions made in the past few years, Etteplan has several legal entities in different
countries. We aim to improve the efficiency of our operations by simplifying the Group’s legal structure. We
started projects in 2021 in the Netherlands, Germany and Finland. The changes will improve the efficiency
of our internal operations, simplify the implementation of our customer projects and ensure equal treatment
for our personnel.
General meeting
Etteplan Oyj’s Annual General Meeting was held on April 8, 2021. 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 2020.
The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors,
to pay a dividend of EUR 0.34 per share for the financial year 2020 and to leave the remaining funds in
unrestricted equity. The dividend decided on by the Annual General Meeting was paid to the shareholders
registered on the record date in the shareholders’ register maintained by Euroclear Finland Ltd. The record
date for the dividend payout was April 12, 2021, and the date of dividend payout was April 19, 2021.
In accordance with the proposal of Etteplan’s Nomination and Remuneration Committee, the Annual
General 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 members
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
Directors, the Annual General Meeting re-elected Matti Huttunen, Robert Ingman, Päivi Lindqvist, Leena
Saarinen and Mikko Tepponen as members of the Board of Directors. KPMG Oy Ab, Authorized Public
Accountants, 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 Chairman and Robert Ingman and Leena Saarinen as members of the Nomination and Remuneration
Committee of Etteplan Oyj. Leena Saarinen was elected the Chairman and Päivi Lindqvist and Mikko
Tepponen as members of the Audit Committee of Etteplan Oyj.
Board authorizations
The Annual General Meeting 2021 authorized 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.
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 determined
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) percent 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
consideration 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 reduce
the non-restricted equity of the Company.
FINANCIAL REVIEW | 6BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
The authorization is valid for 18 months from the date of the resolution of the Annual General Meeting
starting on April 8, 2021, and ending on October 7, 2022. The authorization replaces the corresponding previous
authorization.
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 entitling
to shares under Chapter 10, Section 1 of the Finnish Companies Act in one or more issues. The authorization
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
conditions 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
decide 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 on 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, 2021, was EUR 5,000,000.00 and the total number of
shares was 25,083,308.
In a stock exchange release published on June 14, 2021, Etteplan announced it had acquired the Polish
software development company Skyrise.tech S.A. and would carry out a directed share issue to the owners
of the acquired company. In accordance with the terms of the share issue, Etteplan offered 120,000 new
Etteplan shares for subscription to the owners of Skyrise.tech.
In its meeting on June 17, 2021, Etteplan’s Board of Directors resolved on the final terms of the
directed share issue pursuant to the share issue authorization granted to it by the Annual General Meeting
of Shareholders held on April 8, 2021. The key terms of the share issue were announced in a stock exchange
release on June 17, 2021.
The shares were entered in the trade register on August 18, 2021, and issued in the form of book-entry
securities in the book-entry securities system maintained by Euroclear Finland Oy in the beginning of September.
The shares were conveyed and they bear all shareholder rights starting from their entry into the trade
register. However, trading in the new shares will only be possible after the expiration of the three-year lock-
up period agreed upon at the time of the transaction.
After the directed share issue, Etteplan’s Board of Directors may, based on the authorization granted by
the Annual General Meeting 2021, decide on the issuance of a maximum of 2,380,000 more shares through
issuance of shares or in another manner specified in the authorization. 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 or option rights.
Trading in shares
The number of Etteplan Oyj shares traded during 2021 was 1,539,757 (2020: 1,564,244), for a total value of
EUR 25.15 (14.80) million. The share price low was EUR 12.95, the high EUR 19.45, the average EUR 16.33
and the closing price EUR 16.90. Market capitalization on December 31, 2021, was EUR 421.22 (322.25)
million. On December 31, 2021, Etteplan had 3,604 shareholders (3,323).
Share repurchase program
In its meeting on May 21, 2021, Etteplan Oyj’s Board of Directors decided to initiate a share repurchase
program of Etteplan’s own shares in accordance with the authorization given to it by the Annual General
FINANCIAL REVIEW | 7BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Meeting on April 8, 2021. The shares are repurchased in order to be used to fulfill obligations pertaining to
the share-based incentive plan for the Group’s key personnel. The number of repurchased shares will not
exceed 80,000 shares and the corresponding number of voting rights, which corresponds to approximately
0.32 percent of the current total number of Etteplan’s shares. According to the Board’s decision, the
maximum repurchase price is EUR 19.00 per share. Shares will be repurchased on Nasdaq Helsinki Ltd at
the market price quoted at the time of the repurchase, as provided by the regulations on public trading of
shares.
The repurchasing of shares began on May 21, 2021, and ended on October 12, 2021, when the
maximum amount of repurchased shares was reached.
In 2021, Etteplan repurchased a total of 80,000 of the Company’s own shares. The Company held
159,046 of its own shares on December 31, 2021 (December 31, 2020: 79,046), which corresponds to 0.63
percent of all shares and voting rights.
Flaggings
Etteplan Oyj received no flagging notices in 2021.
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 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 covers 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
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.
Event after the review period: Change in Etteplan’s Management
Group
Tero Leppänen, M.Sc. (Computer Science), has been appointed Senior Vice President, Software and
Embedded Solutions and a member of Etteplan’s Management Group effective from January 3, 2022.
Leppänen has worked at Etteplan since 2016 in various leadership positions, most recently as Vice President,
Testing and Product Verification Business Unit and member of the Software and Embedded Solutions service
area’s management team. Leppänen joined Etteplan through the acquisition of Espotel Oy in 2016 and, prior
to that, he worked at Efore Oyj. Tom Leskinen, the former Senior Vice President, Software and Embedded
Solutions, will continue his career outside of Etteplan.
Event after the review period: Etteplan acquired Cognitas from
Canon and becomes a market-leading company in technical
documentation in Germany
Etteplan has on January 17, 2022 acquired Cognitas GmbH, a German technical information lifecycle
management company, from Canon Germany GmbH. The acquisition strengthens Etteplan’s position in
Germany and continues our strategic investments in Central Europe. With the acquisition, Etteplan becomes
a market-leading company in technical documentation in Germany and reinforces its leading position in
Europe.
Founded by Siemens in 2000, Cognitas has been owned by Canon Germany since 2014. Cognitas is
a leading German consulting and services company in the field of technical documentation, with annual
revenue of approximately EUR 15 million. Cognitas employs 200 professionals in consulting and technical
information authoring and management. The parties have agreed not to publish the purchase price.
FINANCIAL REVIEW | 8BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Event after the review period: Etteplan acquired Syncore, an
embedded system specialist in Sweden - a directed share issue to
the owners of the acquired company
Etteplan strengthened its position in Sweden and on February 2, 2022 acquired Syncore Technologies AB,
a technology services company focusing on embedded systems. The acquisition is in line with Etteplan’s
growth strategy as it complements our expertise and increases our international presence.
Founded in 2000, Syncore is specialized 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. In 2020, Syncore's net sales were approximately EUR 5 million
and it employs 46 embedded systems experts in Linköping, Sweden. The parties have agreed not to publish
the purchase price.
As part of the financing of the transaction, Etteplan Oyj's Board of Directors, at its meeting held on
February 1, 2022, made a conditional decision on the share issue based on the share issue authorization
given to the Board of Directors by the Annual General Meeting on April 8, 2021. The directed share issue is
related to the acquisition of Syncore Technologies AB. In accordance with the terms of the transaction, the
purchase price will be paid through a share issue to the sellers and cash. The contract of sale, which was a
condition of the decision, was signed today, February 2, 2022, and at the same time the sellers subscribed
for 117,485 Etteplan new shares as a part payment for the purchase amount. The subscription price per
share to be paid for the shares is EUR 16.42.
Operating risks and uncertainty factors
Etteplan’s financial results are exposed to a number of strategic, operational and financial risks. The
uncertainties 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 important factor for ensuring profitable growth and operations. The increased difficulties in recruiting
professional staff, particularly in certain expert disciplines, continues to present a business risk. The
COVID-19 pandemic continues to have an impact on Etteplan’s business and the prolongation of the
situation would have a negative impact on the Company’s development.
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 2022
The most important factor affecting Etteplan’s business is the global development of the machinery and
metal industry. The prolongation of the COVID-19 pandemic continues to have an impact on the market
situation and supply chains. Our customers have adapted to the effects of the pandemic, and their business
is currently developing positively. The prevailing financial and geopolitical situation may affect the market
development. However, we expect the demand situation to remain fairly good throughout 2022.
Financial guidance 2022
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range and issues the
following estimate:
Revenue in 2022 is estimated to be EUR 340–370 (2021: 300.1) million, and
operating profit (EBIT) in 2022 is estimated to be EUR 28–32 (2021: 25.8) million.
The Board’s proposal for distribution of 2021 profits
The parent company’s distributable shareholders’ equity according to the balance sheet on December 31,
2021, is EUR 57,744,043.25. The Board of Directors will propose to the Annual General Meeting, which
will convene on April 6, 2022, that on the dividend payout date a dividend of EUR 0.40 per share be paid
on the company’s externally owned shares, for a total amount of EUR 10,033,323.20 at most, and that the
remaining profit be transferred to retained earnings.
FINANCIAL REVIEW | 9BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Annual General Meeting 2021
Etteplan Oyj’s Annual General Meeting will be held on Wednesday, April 6, 2022. The summons to the AGM
is published as a separate release.
Corporate Governance statement
Etteplan publishes the Corporate Governance Statement for 2021 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 2021 separately from the Board of
Directors’ review. The statement is available on the Company’s website www.etteplan.com.
Non-IFRS key figures
Etteplan presents non-IFRS key figures to supplement its consolidated financial statements which are
prepared 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 on page 49.
Operating profit (EBITA) and EBITA, %
Operating profit (EBITA) is presented, because it reflects the Group’s operational performance better that
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 below
shows a reconciliation between Operating profit (EBITA) and Operating profit (EBIT).
EUR 1,000 2021 2020
Operating profit (EBIT) 25,754 22,380
Amortization on fair value adjustments at acquisitions 4,385 3,791
Operating profit (EBITA) 30,139 26,172
Organic/un-organic growth and growth in comparable currencies
Organic (revenue) growth is presented in addition to total revenue growth, because it improves the
comparability 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
periods excluding revenue from acquisitions that have taken place in the past 12 months. The revenue
growth created by 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 Services
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
FINANCIAL REVIEW | 10BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Consolidated Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 Note Jan 1–Dec 31, 2021 Jan 1–Dec 31, 2020
Revenue 7 300,111 259,702
Other operating income 8 1,289 3,622
Materials and services 10 -31,685 -23,317
Employee benefits expenses 11 -197,596 -177,301
Other operating expenses 12 -28,527 -22,300
Depreciation and amortization 19, 20 -17,839 -18,026
Operating profit (EBIT) 25,754 8.6% 22,380 8.6%
Financial income 14 593 422
Financial expenses 15 -1,480 -1,722
Profit before taxes 24,867 21,080
Income taxes 17 -4,823 -4,003
Profit for the financial year 20,044 17,077
Other comprehensive income, that may be reclassified to profit or loss
Currency translation differences -589 1,415
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 32 -7
Other comprehensive income for the year, net of tax 17 -557 1,409
Total comprehensive income for the year 19,487 18,486
Profit for the financial year attributable to
Equity holders of the parent company 20,044 17,077
Total comprehensive income attributable to
Equity holders of the parent company 19,487 18,486
Earnings per share calculated from the profit attributable to equity holders of the parent company
Basic earnings per share, EUR 18 0.80 0.69
Diluted earnings per share, EUR 18 0.80 0.69
The notes are an integral part of the Financial Statements.
FINANCIAL REVIEW | 11
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
EUR 1,000 Note Dec 31, 2021 Dec 31, 2020
ASSETS
Non-current assets
Goodwill 22 92,380 83,685
Other intangible assets 19 28,807 26,011
Tangible assets 20 24,759 25,698
Investments at fair value through other comprehensive income 21 418 378
Other non-current receivables 21 54 54
Deferred tax assets 30 731 493
Non-current assets, total 147,150 136,320
Current assets
Inventory 23 376 336
Work in progress 7 26,810 17,764
Trade and other receivables 24 47,988 38,883
Current tax assets 273 208
Cash and cash equivalents 30,356 24,407
Current assets, total 105,803 81,598
TOTAL ASSETS 252,953 217,918
EUR 1,000 Note Dec 31, 2021 Dec 31, 2020
EQUITY AND LIABILITIES
Equity
Share capital 25 5,000 5,000
Share premium account 25 6,701 6,701
Unrestricted equity fund 25 22,037 20,101
Own shares 25 -1,245 -124
Cumulative translation adjustment 25 -3,473 -2,884
Other reserves 25 133 101
Retained earnings 25 69,761 58,178
Equity, total 98,914 87,074
Non-current liabilities
Deferred tax liabilities 30 7,408 6,502
Loans from financial institutions 27 30,350 12,900
Lease liabilities 27 8,777 8,608
Other non-current liabilities 28 827 27
Non-current liabilities, total 47,362 28,038
Current liabilities
Loans from financial institutions 27 25,453 27,583
Lease liabilities 27 13,894 15,883
Advances received 7 3,891 2,770
Trade and other payables 29 61,673 54,608
Current income tax liabilities 1,766 1,962
Current liabilities, total 106,677 102,806
Liabilities, total 154,039 130,844
TOTAL EQUITY AND LIABILITIES 252,953 217,918
The notes are an integral part of the Financial Statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FINANCIAL REVIEW | 12BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
EUR 1,000 Note Jan 1–Dec 31, 2021 Jan 1–Dec 31, 2020
OPERATING CASH FLOW
Cash receipts from customers 287,564 267,784
Operating expenses paid -253,056 -223,600
Operating cash flow before financial items and taxes 34,508 44,184
Interests and other payments for financial expenses 15 -1,289 -1,257
Interest received 14 80 79
Income taxes paid 17 -6,205 -5,010
Operating cash flow (A) 27,093 37,997
INVESTING CASH FLOW
Purchase of tangible and intangible assets 19, 20 -2,157 -1,639
Acquisition of subsidiaries, net of cash acquired 5 -14,255 -5,885
Proceeds from sale of tangible and intangible assets 17 30
Proceeds from repayment of loans 73 0
Investing cash flow (B) -16,321 -7,494
Cash flow after investments (A+B) 10,772 30,503
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.
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1,000 Note Jan 1–Dec 31, 2021 Jan 1–Dec 31, 2020
FINANCING CASH FLOW
Proceeds from directed share issue 25 1,936 0
Purchase of own shares 25 -1,382 0
Proceeds from current loans 27 6,941 11,698
Repayments of current loans 27 -30,060 -12,217
Proceeds from non-current loans 27 37,503 0
Repayments of non-current loans 27 -6 -695
Payment of lease liabilities 20 -11,478 -12,131
Dividend paid 25 -8,461 -8,682
Financing cash flow (C) -5,007 -22,028
Variation in cash (A+B+C) increase (+) / decrease (-) 5,765 8,475
Assets at the beginning of the financial period 24,407 15,878
Exchange gains or losses on cash and cash equivalents 184 55
Assets at the end of the financial period 30,356 24,407
FINANCIAL REVIEW | 13
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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, 2020 5,000 6,701 20,101 108 -700 -4,299 49,829 76,740
Comprehensive income for the year
Profit for the financial year 0 0 0 0 0 0 17,077 17,077
Other comprehensive income for the year
Change in fair value of equity investments at fair value through other
comprehensive income 0 0 0 -7 0 0 0 -7
Cumulative translation adjustment 0 0 0 0 0 1,415 0 1,415
Other comprehensive income for the year, net of tax 0 0 0 -7 0 1,415 0 1,409
Total comprehensive income for the year 0 0 0 -7 0 1,415 17,077 18,486
Transactions with owners
Dividends 0 0 0 0 0 0 -8,682 -8,682
Share-based incentive plan 0 0 0 0 576 0 -45 531
Transactions with owners, total 0 0 0 0 576 0 -8,728 -8,152
Equity Dec 31, 2020 5,000 6,701 20,101 101 -124 -2,884 58,178 87,074
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
Change in fair value of equity investments 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
The notes are an integral part of the Financial Statements.
FINANCIAL REVIEW | 14
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1
GENERAL INFORMATION
The Parent Company of Etteplan Group is Ette plan O yj . Et tep lan O yj is a Finnish p ubli c limite d comp any
established under Finnish law. The Company is domiciled in E sp oo, Finl and and its registered office is
located in T eknii kanti e 4, 021 5 0 Es po o , Finland . The Company’s principal place of business is also located
in T eknii kanti e 4, 021 5 0 Es po o . Etteplan’s shares are listed on Nasdaq Helsinki Ltd’s Medium Cap market
capitalization group in the Industrials sector under the ETTE ticker.
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 Et te plan O yj Board of Directors approved these Financial Statements for publication at its meeting
on February 10, 2022.
According to the Finnish Limited Liability Companies Act, the shareholders have the opportunity
to approve or reject the Financial Statements at the Annual General Meeting held after the publication.
Furthermore, 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, 2021. The
notes to the Financial Statements are also prepared in accordance with the Finnish accounting and company
regulation, which complements the IFRS requirements. The Consolidated Financial Statements have been
prepared under the historical cost convention, except for certain financial assets 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
accounting 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.
FINANCIAL REVIEW | 15BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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,
2021, did not have a significant effect on the Consolidated Financial Statements of the Group.
Forthcoming requirements
The new standards, amendments and interpretations issued, but effective later than for the financial year
beginning January 1, 2021, 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 ability
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
transferred 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 acquired
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 assumed. 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
companies 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 currency
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 Financial
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 prevailing
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 exchange 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. Foreign 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.”
FINANCIAL REVIEW | 16BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyper-
inflationary 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 (unless
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 liabilities 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. 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 3–7 year s
Internally created software 3–5 years
Customer base (acquisitions) 10 years
Non-competition agreements (acquisitions) 3 years
Other intangible assets 3 year s
The residual value, useful life and amortization method of each asset is examined at the end of each
financial year and adjusted, if necessary, to reflect the changes in 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
identifiable 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
development 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.
Development 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 recognized as
an expense as incurred.
FINANCIAL REVIEW | 17BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Fair value adjustments in acquisitions include intangible assets acquired in business combinations;
customer base and non-competition agreements.
Leased software is activated as described in note 2.15.
Goodwill corresponds to that part of the acquisition cost which 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 historical
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 organization 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
residual values over their estimated useful lives, as follows:
Buildings 50 years
Leased office premises 1.5–7 years
Computers 3 years
Vehicles 4–5 years
Office furniture 5–10 years
Renovation of premises 5–7 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
activated as described in note 2.15.
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, assets
are grouped at the lowest levels for which there are separately identifiable cash flows followed for internal
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 to the Financial Statements
(Impairment testing).
FINANCIAL REVIEW | 18BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
2.8 Financial instruments
Financial instruments and their fair values by measurement category are detailed in note 21.
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
expired or have been transferred and the Group has transferred substantially all risks and rewards of
ownership. 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 estimated
as described in note 4.1.4. Trade receivables transferred to a financial institution in factoring arrangements
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
carried 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.
FINANCIAL REVIEW | 19BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Impairment
The Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments 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 completion and the
estimated costs necessary to make the sale.
2.10 Equity
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.
Where any Group company purchases the Company’s equity share capital (treasury shares), the
consideration 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.
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.
2.11 Current and deferred income tax
The taxes in the consolidated income statement include the current tax for the Group companies, corrections
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 entered
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
recognition 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
available against which the temporary differences can be utilized. It is evaluated at the end of each financial
period, 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
current 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.
2.12 Employee benefits
Pension obligations
Group companies operate various pension schemes. The schemes are generally funded through payments to
insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group
has both defined benefit and defined contribution plans.
FINANCIAL REVIEW | 20BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a
separate 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
payments is available.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined
benefit plans define an amount of pension benefit that an employee will receive on retirement, usually
dependent on one or more factors such as age, years of service and compensation. In Sweden and the
Netherlands, the Group has defined benefit plans, which are so called multi-employer plans, of which there
is not sufficient information available to use benefit accounting. These plans are accounted as defined
contribution plans.
Bonus plans
The Group recognizes a liability and an expense for bonuses based on a formula that takes into consideration
the profit attributable to the Company’s shareholders after certain adjustments. The Group recognizes
the expense and liability where contractually obliged or where there is a past practice that has created 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 total
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-market 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.
2.13 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
typically 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. Revenue
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
performance obligations, determining transaction prices, allocating transaction prices to performance
obligations and recognizing revenue. Revenue is recognized when the customer obtains control of the
promised service or product; either over time or at a point in time. The Group recognizes revenue in a way
that represents the rendering of the promised services or goods to the customer, and to such an amount that
represents the compensation the Group expects to be entitled to in exchange for the goods and services.
FINANCIAL REVIEW | 21BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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 percentage of completion is
measured as the costs of the project realized as a proportion to the total expected 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 obligations, revenue for each performance
obligation is recognized separately. In the case of contracts whose outcome cannot be assessed
reliably, project expenditure is expensed and revenue is recognized to an amount not exceeding the
expenditure. The total loss on a contract that will probably result in a loss is reserved and 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 estimated 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 maintenance
related to the license. Revenue for the license itself is recognized when the customer obtains 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
performance 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 enforceable right to payment for performance 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 transferred
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 disclose
the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as at
the end of the reporting period or the estimated timing of satisfaction, because the unsatisfied performance
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 performance to date.
Government grants
Government grants that are intended to compensate costs are recognized as income over the same period as
the related costs are recognized.
2.14 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 discounted
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.
FINANCIAL REVIEW | 22BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
2.15 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 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
• 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
remeasured 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 termination option
or if there is a revised in-substance fixed lease payment. When the lease liability is remeasured 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
determined, 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 received
• 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 IFRS 16 standard and recognizes payments
associated 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
options are used in such a way that the lease term for lease agreements is at least 18 months also for lease
agreements with 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 accurate
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 approximately EUR
1.8 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 1.8 million.
FINANCIAL REVIEW | 23BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
2.16 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 income
and expense that are shown separately due to the significance of their nature or amount. Non-recurring
items can include, among other things, costs and income related to business combinations as well as certain
reorganization costs.
3
CRITICAL ACCOUNTING ESTIMATES AND
MANAGEMENT JUDGMENT BASED DECISIONS
When preparing the Consolidated Financial Statements, estimates and assessments must be made
concerning 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 IFRSs allow alternative valuation, recording and presenting manners.
Judgments and estimates made in the preparation of the financial statements are based on the
management’s best judgment on the closing date. They are based on previous experience and future
expectations 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
realization 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 assets,
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. In-
dications 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 calculations.
Values recorded in the balance sheet at the end of the financial year were EUR 92,380 thousand (2020:
EUR 83,685 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
economic 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 consideration.
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 revenues, costs or
extent of progress toward completion are revised if circumstances change, and at each reporting 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.
FINANCIAL REVIEW | 24BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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, interest,
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 possible to
guaranteeing the Group’s profitability and equity, and to guarantee sufficient liquidity in a cost-efficient
manner. Management of financial risks has been centralized with the Group’s financial department, which
is responsible for identification and evaluation of, and protection against, the Group’s financial risks.
Furthermore, the financial department is responsible, in a centralized fashion, for 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-denominated
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 period
under review, the Group did not have significant transaction risks generated from the currency flow in
foreign currencies. The Group did not take steps to protect itself against transaction risks during the review
period.
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 26,655 thousand (2020: EUR 27,229 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 balance sheet date is presented in the table below. In the
analysis, the change in exchange rates has been estimated to be +/- 10 percent from reporting date, and
other factors are estimated to remain unchanged.
2021
EUR 1,000
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
2020
EUR 1,000
Effect on profit for
the financial year
Effect on other
equity items Effect on goodwill
EUR/SEK 10% increase -171 -901 -2,475
EUR/SEK 10% decrease 209 1,102 3,025
EUR/PLN 10% increase -20 -173 0
EUR/PLN 10% decrease 25 212 0
EUR/CNY 10% increase -21 -111 -166
EUR/CNY 10% decrease 25 136 203
FINANCIAL REVIEW | 25
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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 55,803 thousand (2020: EUR 40,483 thousand) covered with contracts in which the interest range is
between 0.55 and 0.80 percent (2020: between 0.65 and 2.0 percent). All of the Group’s loans have variable
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
interest bearing loans from financial institutions are included in the calculation. Lease liabilities are not
included 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 330 thousand (2020: EUR 271 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 14,497 thousand (2020: EUR 16,534 thousand) of available credit limits, of which none
(2020: none) was 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 necessary.
The Group has financial covenants, which are tied to the equity ratio of the Group and to the debt/
EBITDA ratio of the Group. In case the Group’s equity ratio at the time of the Financial Statement is below
25% or the debt/EBITDA ratio is higher than 3.5, the financer has the right to demand immediate payment
of all the Group’s loans. According to the Consolidated Financial Statements in 2021, 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
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
2020
EUR 1,000
Less than
1 year 1–5 years
Borrowings 27,58 3 12,900
Lease liabilities 15,883 8,608
Interest payments 217 103
Liabilities from acquisitions 132 0
Trade and other payables 11,93 8 20
Total 55,753 21,631
Non-monetary changes in interest-bearing liabilities
EUR 1,000 2021 2020
Interest-bearing liabilities Jan 1 64,974 56,255
Financing cash flow 2,900 -13,346
Non-monetary changes
Changes in lease agreements 8,893 18,589
Loans and lease liabilities assumed in business combinations 1,547 3,558
Translation differences and other changes 160 -81
Non-monetary changes, total 10,599 22,065
Interest-bearing liabilities Dec 31 78,474 64,974
FINANCIAL REVIEW | 26
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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
obligations. 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 divided
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 overdue sales
receivables are assessed on a weekly basis. The Company strives to control the effects of increased financial
uncertainty by actively monitoring its receivables and by an efficient debt collection process. The maximum
customer credit risk exposure at the end of the financial year is the book value of accounts receivable.
Expected credit loss allowance
To measure expected credit losses the Group applies the IFRS 9 simplified approach which uses a lifetime
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
addition 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 percent
provision for impairment for receivables that are more than 60 days past due and a 100 percent provision for
receivables that are more than 90 days past due.
Past due
2021
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 allowance 20 1 7 2 43 73
Case-by-case credit loss allowance 286 286
Expected credit loss allowance 359
Past due
2020
EUR 1,000 Not due 1–30 d 31–60 d 61–90 d > 90 d Total
Expected loss rate 0.1% 0.1% 3.9% 10.3% 9.1%
Trade receivables 29,277 2,716 1,045 443 1,149 34,631
Work in progress 17,76 4 0 0 0 0 17,76 4
Lifetime expected credit loss allowance 47 3 41 46 105 241
Case-by-case credit loss allowance 123 123
Expected credit loss allowance 364
Movements of the expected credit loss allowance:
EUR 1,000 2021 2020
Expected credit loss allowance Jan 1 -364 -413
Payments received 44 44
Expected credit loss allowance in acquirees 3 -12
Expected credit loss allowance, decrease (+) / increase (-) -43 17
Expected credit loss allowance Dec 31 -359 -364
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, amongst others, the failure of a
debtor to engage in a repayment plan with the Group.
FINANCIAL REVIEW | 27BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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%. The following table sets out the Group’s net gearing ratio:
EUR 1,000 2021 2020
Gross interest-bearing debt 78,474 64,974
Less: Cash and cash equivalents -30,356 -24,407
Net debt 48 ,118 40,567
Total equity 98,914 87,075
Net gearing ratio 48.6% 46.6%
5
BUSINESS COMBINATIONS
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
TekPartner, an engineering and IT company specialized in electronics and software on January 7, 2021.
TekPartner, founded 2009, covers development of all core disciplines within embedded software, intelligent
electronics, FPGA (field-programmable gate array) and IoT (Internet of things). In 2019 TekPartner´s revenue
was approximately EUR 8 million.
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
Denmark. 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 thousand in total. In addition to this payment a contingent consideration of EUR 0–1,900 thousand
(undiscounted amount) is agreed upon. The contingent consideration will be paid in full provided that
TekPartner A/S’s result in the financial years 2021 and 2022 reaches the thresholds set in the share transfer
agreement. 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
expected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 99 thousand, were included in other operating expenses in the
consolidated 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
documentation solutions for governmental utility vehicles and the defense industry. It is located in Koblenz
and employs some 15 technical documentation specialists.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 560
thousand in total.
The provisional 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 expected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 16 thousand, are included in other operating expenses in the
consolidated statement of comprehensive income.
FINANCIAL REVIEW | 28BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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 working
mostly with customers in logistics, mobility, healthcare and enterprise industries. In 2020 Skyrise.tech’s
revenue was some EUR 3.5 million. The acquired company has some 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
thousand in total. The provisional 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 expected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 196 thousand, are included in other operating expenses in the
consolidated 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 on planning and
implementation of technical documentation of software, localization of the content as well as consulting
and training. 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
manufacturers.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 941
thousand in total. The provisional 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 expected to be deductible for income tax purposes.
Costs related to the acquisition, EUR 20 thousand, are included in other operating expenses in the
consolidated statement of comprehensive income.
BST Buck Systemtechnik GmbH (100%)
Etteplan acquired BST Buck Systemtechnik GmbH in Brunsbüttel in the Northern part of Germany on
September 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 complements our current operations in industrial automation and process engineering
and creates a stronger and wider growth platform for us in the important engineering market in
Germany.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was EUR 990
thousand in total.
The provisional 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
consolidated statement of comprehensive income.
FINANCIAL REVIEW | 29BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Acquisitions in total
The following table summarizes the provisional 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 -7,09 6
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 profit for the financial year EUR 1,450 thousand. Had all the companies been consolidated 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.
Business combinations in financial year 2020
Tegema (100%)
Etteplan strengthened its production related competences and know-how by acquiring Tegema in the
Netherlands on September 9, 2020. Tegema provides production solutions, production cells and equipment
for customers in the field of semiconductors, electronics, mobility, photonics and medical. Tegema is a
production system integrator specializing in customized precision mechanics and mechatronics. It combines
this experience with the latest robotics, software and assembly technologies. 100 experts work for Tegema
in Eindhoven and Arnhem. In 2019 the company’s revenue was approximately EUR 11 million.
The acquisition was another step in Etteplan’s international growth and marked the start
for engineering services in the Netherlands. Previously Etteplan was offering services for technical
documentation in the country.
The acquisition consideration recognized at the time of the acquisition, paid in cash, was
EUR4,730thousand in total.
The goodwill of EUR 3,613 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
expected to be deductible for income tax purposes.
The following table summarizes the values of acquisition consideration, assets acquired and liabilities
assumed for the acquisition.
FINANCIAL REVIEW | 30BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Consideration transferred: EUR 1,000
Cash payment 4,730
Total consideration transferred 4,730
Assets and liabilities
Tangible assets 2,682
Intangible assets 255
Customer relationships (intangible assets) 1,750
Non-competition agreements (intangible assets) 220
Trade and other receivables 1,710
Cash and cash equivalents 492
Total assets 7,108
Non-current liabilities 3,171
Current liabilities 2,328
Deferred tax liability 492
Total liabilities 5,991
Total identifiable net assets 1,117
Formation of Goodwill:
Consideration transferred 4,730
Total identifiable net assets -1,117
Goodwill 3,613
Trade and other receivables comprise gross contractual amounts and equal fair value amounts of EUR 1,710
thousand.
Costs related to acquisition, EUR 148 thousand, were included in other operating expenses in the
consolidated statement of comprehensive income.
The revenue included in the income statement contributed by the acquired company was EUR 3,450
thousand and profit for the financial year EUR 191 thousand. Had the company been consolidated from
January 1, 2020, the income statement would show revenue of EUR 266,114 thousand and profit for the
financial year of EUR 17,237 thousand.
Changes in contingent considerations in financial year 2020
A profit of EUR 652 thousand in total was recognized in the income statement from premeasurements of
contingent considerations related to previous acquisitions.
6
SEGMENT REPORTING
The Group has three reportable segments, the revenue of which consist mainly of rendering of services.
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 typically 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
Documen-
tation
Solutions
Reportable
segments
total
Eliminations
and other Total
2021
External revenue 167,433 80,123 51,650 299,206 905 30 0,111
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
FINANCIAL REVIEW | 31
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
EUR 1,000
Engineering
Solutions
Software
and
Embedded
Solutions
Technical
Documen-
tation
Solutions
Reportable
segments
total
Eliminations
and other Total
2020
External revenue 148,884 63,694 46,531 259,110 593 259,702
Operating profit (EBITA) 14,679 7,101 4,583 26,363 -192 26,172
Personnel at end of the
period 1,922 628 616 3,166 101 3,267
Reconciliation of Operating profit (EBITA) and Profit before taxes
EUR 1,000 2021 2020
Operating profit (EBITA) 30,139 26,172
Amortization on fair value adjustments at acquisitions -4,385 -3,791
Operating profit (EBIT) 25,754 22,380
Financial income 593 422
Financial expenses -1,480 -1,722
Profit before taxes 24,867 21,080
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 country level.
EUR 1,000 2021 2020
Finland 63,609 66,989
Scandinavia 39,820 34,185
China 2,931 2,565
Central Europe 39,640 31,710
Total 146,001 135,449
Disaggregation of revenue by geographical area is presented in note 7.
7
REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
The table below presents the disaggregation of revenue by geographical area and timing of revenue
recognition. 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,
thus this revenue is partly included in the revenue from other areas. Revenue by service area is presented
in note 6.
EUR 1,000 2021 2020
Primary geographical location
Finland 169,996 159,277
Scandinavia 70,153 57,519
Central Europe 47,747 35,705
China 12,216 7,201
Total 300,111 259,702
Timing of revenue recognition
Transferred at a point in time 2,241 2,044
Transferred over time 297,871 257,658
Total
300,111 259,702
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.
FINANCIAL REVIEW | 32BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
EUR 1,000 2021 2020
Contract assets (Work in progress)
Work in progress Jan 1 17,76 4 22,498
Business combinations 6 425
Additions 262,259 238,754
Invoicing -252,290 -242,592
Netting work in progress and advances received -785 -1,528
Other changes -144 208
Contract assets Dec 31 26,810 17,764
Contract liabilities (Advances received)
Advances received Jan 1 2,770 5,378
Additions 37,922 23,434
Revenue recognized that was included in the contract liability at the beginning
of the period -35,967 -24,690
Netting work in progress and advances received -785 -1,528
Other changes -50 177
Contract liabilities Dec 31 3,891 2,770
8
OTHER OPERATING INCOME
EUR 1,000 2021 2020
Premeasurement of contingent considerations in business combinations 0 652
Covid compensations received (part included in other operating income)* 132 1 613
Insurance compensations received 158 177
Other compensations received 60 187
Other operating income 938 994
Total 1,289 3,622
*Direct Covid compensations were included in other operating income and cost support type compensations in
employee benefits expenses (note 11) in 2020.
9
NON-RECURRING ITEMS
Items that are material either because of their size or their nature, and that are non-recurring are considered
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-recurring items
relate to acquisitions and restructuring.
EUR 1,000 2021 2020
Other operating income 0 652
Employee benefits expenses and other operating expenses -656 -1,568
Operating profit (EBIT) -656 -916
10
MATERIALS AND SERVICES
EUR 1,000 2021 2020
Materials 8,481 6,494
Services from others 23,204 16,823
Total 31,685 23,317
FINANCIAL REVIEW | 33
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
11
NUMBER OF PERSONNEL AND
EMPLOYEE BENEFITS EXPENSES
2021 2020
Personnel
Personnel at year-end 3,629 3,267
Personnel, average 3,480 3,320
Personnel by category
Design personnel 3,436 3,099
Administrative personnel 193 168
Total 3,629 3,267
EUR 1,000 2021 2020
Employee benefits expenses*
Wages and salaries 160,810 144,598
Pension costs - defined contribution plans 20,021 17,920
Other indirect employee benefits expenses 16,765 14,783
Total 197,596 177,301
* COVID compensations were partly included in other operating income (note 8) and partly in employee benefits
expenses in 2020.
COVID compensations included in employee benefits expenses in the financial year 2020 were EUR 709 thousand in
total.
Compensation of the Board of Directors and top management are disclosed in note 32 Related
party transactions.
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 insurers.
Therefore, these plans are treated in accounting as defined contribution plans. Etteplan's share of the total
premiums paid to the arrangement and the share of employees participating in the arrangements is less than
0.0 percent. Total amount paid to the insurer in 2021 in Sweden was EUR 1,191 thousand
(2020: EUR 1,276 thousand) and in the Netherlands EUR 594 thousand (2020: EUR 645 thousand). The payment
level is not expected to change materially in the next financial period compared to the period under review.
12
OTHER OPERATING EXPENSES
EUR 1,000 2021 2020
Software and telecommunication expenses 9,430 8,236
Travel expenses 3,549 4,080
Premises expenses 1,891 417
Epenses related to leases of low-value assets 944 862
Voluntary personnel expenses 5,432 4,098
Change in credit loss allowance 36 151
Loss on disposals of fixed assets 1 362
Insurances 492 454
Costs related to acquisitions 296 248
Legal services 375 195
Other expenses 6,080 3,198
Total 28,527 22,300
13
AUDIT FEES
EUR 1,000 2021 2020
Auditing, KPMG-network 110 95
Auditor's statements based on laws and regulations, KPMG Oy Ab 0 2
Other services (tax services), KPMG Oy Ab 46 51
Other services (other services), KPMG-network 150 51
Total 306 199
FINANCIAL REVIEW | 34
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
14
FINANCIAL INCOME
EUR 1,000 2021 2020
Dividend income from investments 9 9
Interest income from loans and other receivables 70 70
Foreign exchange gain 513 343
Total 593 422
15
FINANCIAL EXPENSES
EUR 1,000 2021 2020
Interest on borrowings 622 853
Leasing interest expenses 267 134
Foreign exchange loss 266 577
Other financial expenses 325 158
Total 1,480 1,722
16
TRANSLATION DIFFERENCES RECOGNIZED
IN INCOME STATEMENT
EUR 1,000 2021 2020
Foreign exchange gain included in financial income 513 343
Foreign exchange loss included in financial expenses -266 -577
Total 246 -234
17
INCOME TAXES
EUR 1,000 2021 2020
Tax on income from operations -5,793 -4,814
Tax corrections for previous accounting periods -47 109
Change in deferred tax asset 232 159
Change in deferred tax liability 786 541
Total -4,823 -4,003
FINANCIAL REVIEW | 35
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Reconciliation between income taxes in the income statement and the theoretical amount of tax
that would arise using the Group's domestic tax rate (2021: 20.0%, 2020: 20.0%)
EUR 1,000 2021 2020
Accounting profit before tax 24,867 21,080
Income tax expense
Tax based on parent company's tax rate -4,973 -4,216
Differences (net)
Effect of different tax rates in Group companies 40 73
Effect of change in tax rate on deferred taxes 38 0
Calculated tax based on non-deductible items on unit's tax rate -190 -356
Calculated tax based on non-taxable items on unit's tax rate 233 254
Tax corrections for previous accounting periods -47 109
Use of previously unrecognized tax on confirmed losses 88 62
Use of recognized tax on confirmed losses 0 15
Unrecognized tax on loss for the period -5 27
Other tax difference -5 28
Income tax expense -4,823 -4,003
Tax charge (-) / credit (+) relating to components of other comprehensive income
EUR 1,000 Before tax
Tax charge /
credit After tax
2021
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
2020
Change in fair value of equity investments at fair value through other
comprehensive income -8 1 -7
Currency translation differences 1,415 0 1,415
Other comprehensive income for the year, net of tax 1,407 1 1,409
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.
2021 2020
Profit attributable to equity holders of the Parent Company (EUR 1,000) 20,044 17,077
Issue adjusted weighted average number of shares (1,000 pcs) Jan 1 24,862 24,832
Effect of own shares -31 30
Effect of shares issued 73 0
Issue adjusted weighted average number of shares (1,000 pcs) Dec 31 24,904 24,862
Basic earnings per share (EUR/share) 0,80 0,69
Diluted earnings per share (EUR/share) 0,80 0,69
19
INTANGIBLE ASSETS
Goodwill
EUR 1,000 2021 2020
Acquisition cost Jan 1 83,685 79,044
Translation difference -387 1,028
Acquisition of subsidiaries (note 5) 9,082 3,613
Book value Dec 31 92,380 83,685
FINANCIAL REVIEW | 36
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Other intangible assets
EUR 1,000
Intangible
rights
Internally
created
intangible
assets
Fair value
adjustments
in acquisi-
tions
Leased
software
Advance
payments Total
2021
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
EUR 1,000
Intangible
rights
Internally
created
intangible
assets
Fair value
adjustments
in acquisi-
tions
Leased
software
Advance
payments Total
2020
Acquisition cost Jan 1 11,4 60 2,858 36,210 4,818 113 55,460
Translation difference -21 0 182 14 0 174
Acquisition of subsidiaries 601 298 1,970 0 0 2,869
Additions 401 87 0 1,828 51 2,368
Disposals -435 -861 0 0 0 -1,296
Reclassifications 109 562 0 0 -35 637
Acquisition cost Dec 31 12,114 2,945 38,362 6,661 129 60,211
Cumulative amortization Jan 1 -9,440 -2,110 -12,454 -3,985 0 -27,9 88
Translation difference 21 0 -60 -13 0 -52
Acquisition of subsidiaries -599 -45 0 0 0 -644
Disposals 435 522 0 0 0 957
Reclassifications 0 -562 0 0 0 -562
Amortization for the financial
year -835 -308 -3,791 -977 0 -5,911
Cumulative amortization Dec 31 -10,417 -2,504 -16,306 - 4,974 0 -34,200
Book value Dec 31 1,697 442 22,056 1,687 129 26,011
FINANCIAL REVIEW | 37
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
20
TANGIBLE ASSETS
Right-of-use assets
EUR 1,000
Land and
water Buildings
Machinery
and
equip-
ment
Other
tangible
assets
Machi-
nery and
equip-
ment Premises Total
2021
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 77,8 64
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 -7,3 65 -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
Right-of-use assets
EUR 1,000
Land and
water Buildings
Machinery
and equip-
ment
Other
tangible
assets
Machi-
nery and
equip-
ment Premises Total
2020
Acquisition cost Jan 1 19 495 12,426 979 15,855 16,017 45,792
Translation difference 0 0 -2 0 82 0 80
Acquisition of subsidiaries 0 0 1,145 211 495 1,968 3,819
Additions 0 0 1,030 70 2,442 15,267 18,809
Disposals 0 0 -211 0 -251 -698 -1,161
Acquisition cost Dec 31 19 495 14,386 1,261 18,623 32,554 67,339
Cumulative depreciation Jan 1 0 0 -10,496 -878 -11,321 -5,833 -28,528
Translation difference 0 0 13 1 -62 0 -47
Acquisition of subsidiaries 0 0 -966 -171 0 0 -1,137
Disposals 0 0 186 0 0 0 186
Depreciation for the financial
year 0 -11 -826 -63 -3,053 -8,162 -12,115
Cumulative depreciation Dec 31 0 -11 -12,089 -1,110 -14,436 -13,995 -41,641
Book value Dec 31 19 484 2,297 150 4,187 18,559 25,698
FINANCIAL REVIEW | 38
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Tangible and intangible right-of-use assets in total
EUR 1,000 2021 2020
Book value Jan 1 24,434 15,552
Translation difference -13 22
Acquisition of subsidiaries 777 2,463
Additions 10,685 19,538
Disposals and reclassifications -1,805 -949
Depreciation for the financial year -11,4 67 -12,192
Book value Dec 31 22,611 24,434
The total cash outflow for leases in financial year 2021 was EUR 12,702 thousand
(2020: EUR 13,078 thousand).
Additional information on right-of-use assets and lease liabilities in notes 2.1.1 and 2.15
21
FINANCIAL INSTRUMENTS BY
MEASUREMENTCATEGORY
Financial assets 2021
EUR 1,000 Note Amortized cost
Fair value
through OCI Book value total Fair value
Quoted and unquoted shares 21 418 418 418
Trade and other receivables 24 43,542 43,542 43,542
Cash and cash equivalents 30,356 30,356 30,356
Financial assets Dec 31 73,898 418 74,316 74,316
Financial liabilities 2021
EUR 1,000 Note Amortized cost
Fair value
through OCI Book value total Fair value
Loans from financial institutions 27 55,803 55,803 55,803
Lease liabilities 27 22,670 22,670 22,670
Liabilities from acquisitions 5,28 800 800 800
Trade and other payables 29 13,200 13,200 13,200
Financial liabilities Dec 31 91,674 800 92,474 92,474
Financial assets 2020
EUR 1,000
Note Amortized cost
Fair value
through OCI Book value total Fair value
Quoted and unquoted shares 21 378 378 378
Trade and other receivables 24 35,226 35,226 35,226
Cash and cash equivalents 24,407 24,407 24,407
Financial assets Dec 31 59,633 378 60,011 60,011
Financial liabilities 2020
EUR 1,000
Note Amortized cost
Fair value
through OCI Book value total Fair value
Loans from financial institutions 27 40,483 40,483 40,483
Lease liabilities 27 24,491 24,491 24,491
Liabilities from acquisitions 5,29 132 132 132
Trade and other payables 29 11,958 11,958 11,958
Financial liabilities Dec 31 76,932 132 77,064 77,064
Fair value hierarchy
The tables below analyze financial instruments carried at fair value, by valuation method. The different levels
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 REVIEW | 39BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Financial assets recognized at fair value through OCI
2021
EUR 1,000
Quoted shares
(Level 1)
Premises shares
(Level 2)
Unquoted shares
(Level 3) Total
Opening balance at Jan 1 235 120 24 378
Gain/loss recognized in other
comprehensive income 40 0 0 40
Closing balance Dec 31 275 120 24 418
2020
EUR 1,000
Quoted shares
(Level 1)
Premises shares
(Level 2)
Unquoted shares
(Level 3) Total
Opening balance at Jan 1 237 120 30 387
Gain/loss recognized in other
comprehensive income -5 0 -3 -8
Reclassification (stock listing) 3 0 -3 0
Closing balance Dec 31 235 120 24 378
Financial liabilities recognized at fair value through profit or loss
Contingent liability in acquisitions (Level 3)
EUR 1,000 2021 2020
Opening balance at Jan 1 132 2,430
Additions 1,209 0
Revaluation -409 -652
Payment -132 -1,646
Closing balance Dec 31 800 132
Additional information regarding contingent liabilities in acquisitions is provided in note 5 Business
combinations.
22
IMPAIRMENT TESTING
Goodwill is allocated to cash-generating units (CGUs) for determination of impairment. In impairment
testing, the recoverable amount is defined as value-in-use. Value-in-use is defined as the discounted
estimated 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
operations 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
financials 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
impairment loss has been booked during the financial year or the comparison year.
FINANCIAL REVIEW | 40BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Goodwill Sep 30
MEUR 2021 2020
Engineering Solutions 55.8 53.5
Software and Embedded Solutions 30.8 23.1
Technical Documentation Solutions 6.4 5.4
Total 93.0 82.0
Key assumptions used for value-in-use calculations
2021 2020
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 9.5% 9.4%
Software and Embedded Solutions 9.1% 10.2%
Technical Documentation Solutions 8.9% 9.6%
Discount rate after tax
Engineering Solutions 7.6% 7.7%
Software and Embedded Solutions 7.4% 8.2%
Technical Documentation Solutions 7.1% 7.5%
The recoverable amount exceeds the book value as follows:
MEUR 2021 2020
Engineering Solutions 141.1 122.5
Software and Embedded Solutions 94.3 50.5
Technical Documentation Solutions 60.0 45.4
Total 295.4 218.4
Sensitivity analysis
In connection with impairment testing, sensitivity analyses were performed using the following variables:
• 0-growth in net sales
• Decrease of profitability (EBIT) by 4 percentage points
• Increase of discount rate by 4 percentage points
According to 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 2021 2020
Inventory at the beginning of the financial year 336 313
Additions/Deductions 41 23
Total 376 336
FINANCIAL REVIEW | 41
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
24
TRADE AND OTHER RECEIVABLES
EUR 1,000 2021 2020
Trade receivables 42,896 34,631
Credit loss allowance -359 -364
Other receivables 951 904
Prepayments and accrued income 4,500 3,712
Total 47,988 38,883
Main items included in prepayments and accrued income
Accruals of employee benefits expenses 19 35
Prepaid rents 470 458
Other prepayments and accrued income on expenses 4,011 3,219
Total 4,500 3,712
Analysis of receivables by currency
EUR 31,682 26,203
SEK 9,454 9,277
CNY 3,864 2,664
PLN 740 554
DKK 1,921 0
Other currencies 327 185
Total 47,988 38,883
25
EQUITY
Shareholder's 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 Unrestricted equity fund.
Translation differences contain translation differences arising from the conversion of financial statements 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 statement 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 133 thousand (2020:
EUR 101 thousand). The aggregate amount of fair value adjustments are recorded in Retained earnings upon
disposal of the investments.
Shares and share capital
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 25,083,308 (2020: 24,963,308). No changes in share capital
occurred 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. The number of company-held shares at the end of the financial year
was 159,046 (2020: 79,046). 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. The Board
of Directors has proposed to the Annual General Meeting a dividend of EUR 0.40 to be paid for the financial
year 2021.
FINANCIAL REVIEW | 42BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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
incentive plan for the Group 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 includes calendar years 2020–2022. The earning period
covers 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 measurement date was 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 measurement date was EUR 17.29. Expected 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 2021 2020
To be settled in equity in future financial periods 819 558
To be settled in cash in future financial periods 1,315 778
Total 2,134 1,336
27
INTEREST-BEARING LIABILITIES
Analysis by currency
EUR 1,000 2021 2020
Non-current loans from financial institutions
EUR 30,350 12,900
Total 30,350 12,900
Non-current lease liabilities
EUR 6,187 6,016
SEK 1,980 1,783
CNY 369 421
PLN 115 388
DKK 124 0
Total 8,777 8,608
Current loans from financial institutions
EUR 23,996 25,752
CNY 1,458 1,831
Total 25,454 27,583
Current lease liabilities
EUR 11,208 13,682
SEK 1,809 1,608
CNY 286 214
PLN 500 380
DKK 91 0
Total 13,894 15,883
FINANCIAL REVIEW | 43
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
28
OTHER NON-CURRENT LIABILITIES
EUR 1,000 2021 2020
Liability from acquisitions 800 0
Pension liabilities 7 7
Other non-current liabilities 20 20
Total 827 27
29
TRADE AND OTHER PAYABLES
EUR 1,000 2021 2020
Trade payables 13,180 11,938
Accrued liabilities 33,353 29,420
Tax payables 15,174 13,065
Liability from acquisitions 0 132
Other payables -55 36
Total 61,652 54,592
Main items included in accrued expenses and income
Interest liabilities 95 117
Accrued employee benefits expenses 29,984 27, 40 6
Other accrued expenses and income 3,273 1,898
Total 33,353 29,420
Analysis by currency
EUR 46,219 42,434
SEK 11,692 9,649
CNY 1,863 1,648
PLN 1,050 813
DKK 773 0
Other 55 48
Total 61,652 54,592
30
DEFERRED TAXES
Deferred taxes 2021
Deferred tax assets
EUR 1,000 Jan 1, 2021
Translation
difference
In income
statement In equity Acquisitions 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
Translation
difference
In income
statement In equity Acquisitions Dec 31, 2021
Discretionary provisions 1,205 -25 103 0 0 1,282
Fair value adjustments in
acquisitions 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
FINANCIAL REVIEW | 44
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Deferred taxes 2020
Deferred tax assets
EUR 1,000 Jan 1, 2020
Translation
difference
In income
statement In equity Acquisitions Dec 31, 2020
Confirmed loss 0 0 -43 0 75 32
Leases 9 0 2 0 0 12
Share-based incentive plan 250 0 -38 0 0 211
Other timing differences 0 0 238 0 0 238
Total 259 0 159 0 75 493
Deferred tax liabilities
EUR 1,000 Jan 1, 2020
Translation
difference
In income
statement In equity Acquisitions Dec 31, 2020
Discretionary provisions 898 46 260 0 0 1,205
Fair value adjustments in
acquisitions 5,125 26 -767 0 492 4,876
Other timing differences 458 0 -35 -2 0 422
Total 6,481 72 -541 -2 492 6,502
At the end of the financial year the Group had gross losses carried forward of EUR 1,400 thousand (2020:
EUR 1,817 thousand) of which a deferred tax asset has not been recognized. These losses are usable to
offset future taxable gains a minimum of five years.
31
PLEDGES, MORTGAGES AND GUARANTEES
EUR 1,000 2021 2020
Business mortgages 320 320
Pledged shares 120 120
Other contingencies 418 379
Total 858 818
32
RELATED-PARTY TRANSACTIONS
The Group's related party includes such persons that have control, joint control or significant influence over
the Group. Also, the Group's key management personnel is included in the related party. 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 before mentioned persons are
considered as other related parties. The ultimate controlling party, Ingman Group Oy Ab, and its group
companies are also included in related parties.
Related party transactions are priced according to Group's normal pricing basis and purchase
conditions, which are equivalent to those that prevail in arm’s length transactions.
FINANCIAL REVIEW | 45BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Group companies Dec 31, 2021
Company Domicile
Group's / Parent
company's holding
Parent company Etteplan Oyj Espoo, Finland
Adina Solutions Oy Tampere, Finland 100% / 100%
Etteplan Germany GmbH Leverkusen, Germany 100% / 100%
BST Buck systemtechnik GmbH Brunsbüttel, Germany 100% / 0%
Etteplan Finland Oy Lahti, Finland 100% / 100%
Etteplan Embedded Finland Oy Espoo, Finland 100% / 100%
Etteplan Poland sp.z.o.o. Wroclaw, Poland 100% / 0%
Etteplan MORE Oy Tampere, Finland 100% / 100%
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%
Skyrise.tech S.A. Katowice, Poland 100% / 100%
Tegema Eindhoven 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 2021:
Company Domicile Merged to
Triview Technical Communication B.V. Soesterberg, the Netherlands Etteplan Netherlands B.V.
EMP-B Planungsgesellschaft für
Prozessautomation mbH Berlin, Germany Etteplan Germany GmbH
EMP Prozessautomation GmbH Frankfurt am Main, Germany Etteplan Germany GmbH
Tegema Beheer B.V. Eindhoven, the Netherlands Tegema Eindhoven B.V.
Tegema Holding B.V. Eindhoven, the Netherlands Tegema Eindhoven B.V.
Tegema Engineering Services B.V. Eindhoven, the Netherlands Tegema Eindhoven B.V.
Tegema Arnhem B.V. Arnhem, the Netherlands Tegema Eindhoven B.V.
The following transactions were carried out with related parties:
EUR 1,000 2021 2020
Sales and purchases of services and related receivables and payables
Sales of services to other related parties 94 226
Purchases of services from other related parties 36 155
Trade receivables from other related parties 0 92
Key management compensation
Key management of Etteplan Oyj includes the Board of Directors, CEO and Management Group.
Salaries, fees and fringe benefits paid to key management
EUR 1,000 2021 2020
Members of the Board
Robert Ingman, Chairman of the Board 85 92
Cristina Andersson (until Apr 2, 2020) 0 11
Matti Huttunen 45 50
Päivi Lindqvist (Apr 2, 2020 onwards) 44 34
Leena Saarinen 49 59
Mikko Tepponen 44 46
CEO and other members of the Management Group
Juha Näkki, salaries and fees paid 519 805
Juha Näkki, statutory pension costs 88 74
Other members of the Management Group, salaries and fees paid 1,913 2,195
Other members of the Management Group, statutory pension costs 382 312
Management compensation total 3,169 3,679*
* Fees paid to management in 2020 include non-recurring payments of rewards of share-based incentive plans
accumulated over years 2017–2019, of which EUR 491 thousand were share-based payments.
The Annual General Meeting annually resolves the remuneration for the members of the Board of Directors.
Stock options to the key management
Stock options have not been granted to the Company's management during 2021.
FINANCIAL REVIEW | 46BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
33
EVENTS AFTER THE BALANCE SHEET DATE
In January 2022 Etteplan acquired the entire share base of Cognitas GmbH, a German technical information
lifecycle management company from Canon Germany GmbH. The acquisition strengthens Etteplan´s position
in Germany and continues our strategic investments in Central Europe. With the acquisition we become
a market leading company in technical documentation in Germany and reinforce our leading position in
Europe. Cognitas is a leading German consulting and services company in with an annual turnover around
EUR 15 million with 200 professionals in consulting and technical information authoring and management.
Etteplan strengthened its position in Sweden and on February 2, 2022 acquired the entire share base
of Syncore Technologies AB, a technology services company focusing on embedded systems. Founded in
2000, Syncore is specialized 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. In 2020, Syncore's net sales were approximately EUR 5 million and it employs 46
embedded systems experts in Linköping, Sweden.
The initial accounting for these business combinations is incomplete and therefore the other
disclosures required by IFRS 3 standard cannot yet be made.
34
KEY FIGURES FOR FINANCIAL TRENDS
EUR 1,000 Jan 1–Dec 31, 2021 Jan 1–Dec 31, 2020 Jan 1–Dec 31, 2019
Revenue 30 0,111 259,702 263,292
Change in revenue, % 15.6 -1.4 11.3
Operating profit (EBITA) 30,139 26,172 25,964
% of revenue 10.0 10.1 9.9
Operating profit (EBIT) 25,754 22,380 22,819
% of revenue 8.6 8.6 8.7
Profit before taxes 24,867 21,080 21,924
% of revenue 8.3 8.1 8.3
Profit for the financial year 20,044 17,077 17,387
Return on equity, % 21.6 20.8 24.1
ROCE, % 16.0 16.0 19.9
Equity ratio, % 39.7 40.5 38.9
Gross investments 30,582 29,697 36,908
% of revenue 10.2 11. 4 14.0
Net gearing, % 48.6 46.6 52.6
Personnel, average 3,480 3,320 3,305
Personnel at year end 3,629 3,267 3,447
Employee benefits expenses 197,596 177,3 01 172,520
FINANCIAL REVIEW | 47
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
35
KEY FIGURES FOR SHARES
EUR 1,000 Jan 1–Dec 31, 2021 Jan 1–Dec 31, 2020 Jan 1–Dec 31, 2019
Earnings per share, EUR 0.80 0.69 0.70
Equity per share, EUR 3.97 3.50 3.09
Dividend per share, EUR (Proposal by the Board
of Directors) 0.40 0.34 0.35
Dividend per earnings per share, % 50 49 50
Effective dividend return, % 2.4 2.6 3.4
P/E-ratio, EUR 21.1 18.8 14.5
Share price, EUR: lowest 12.95 6.50 7.4 6
highest 19.45 13.30 11.90
average for the year 16.33 9.46 8.99
closing 16.90 12.95 10.15
Market capitalization, EUR 1,000 421,220 322,251 251,792
Number of shares traded, 1,000 pcs 1,540 1,564 1,472
Shares traded, % 6 6 6
Adjusted average number of externally owned
shares during the financial year, 1,000 pcs 24,904 24,862 24,832
Adjusted number of externally owned shares at
year end, 1,000 pcs 24,924 24,884 24,807
FINANCIAL REVIEW | 48
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
FORMULAS FOR THE KEY FIGURES
IFRS KEY FIGURES
Basic earnings per share =
(Profit for the financial year attributable to equity holders of
the parent company)
X 100
Issue adjusted average number of shares during the financial
year
Diluted earnings per
share
=
(Profit for the financial year attributable to equity holders of
the parent company adjusted with dilutive effect)
X 100
Issue adjusted average number of shares during the financial
year adjusted with dilutive effect
NON-IFRS KEY FIGURES
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
FINANCIAL REVIEW | 49BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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.
FINANCIAL REVIEW | 50BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Parent Company's
Financial Statements
PARENT COMPANY'S INCOME STATEMENT
EUR 1,000 Note
Jan 1–Dec 31,
2021 FAS
Jan 1–Dec 31,
2020 FAS
Revenue 1 16,265 15,228
Other operating income 2 15 46
Staff costs 3 -6,299 -4,979
Depreciation and amortization 10, 11 -469 -523
Other operating expenses 5 -8,503 -7,256
Operating profit/loss 1,009 2,517
Financial income and expenses 6.7 783 26
Profit/loss before appropriations and taxes 1,792 2,543
Appropriations 8 12,980 10,987
Income taxes 9 -2,916 -2,529
Profit for the financial year 11,856 11,001
FINANCIAL REVIEW | 51
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
PARENT COMPANY'S BALANCE SHEET
EUR 1,000 Note Dec 31, 2021 FAS Dec 31, 2020 FAS
ASSETS
Non-current assets
Intangible assets 10 1,209 1,454
Tangible assets 11 169 131
Shares in group companies 12 140,104 125,110
Other investments 12 20 20
Non-current receivables 13 4,455 1,835
Non-current assets, total 145,956 128,550
Current assets
Current receivables 14 21,397 22,535
Cash and cash equivalents 15 23,718 16,989
Current assets, total 45,115 39,524
TOTAL ASSETS 191,071 168,074
EUR 1,000 Note Dec 31, 2021 FAS Dec 31, 2020 FAS
EQUITY AND LIABILITIES
Equity
Share capital 16 5,000 5,000
Share premium account 16 6,701 6,701
Unrestricted equity fund 16 22,150 20,215
Own Shares 16 -2,064 -682
Retained earnings 16 25,802 23,261
Profit for the financial year 16 11,85 6 11,0 01
Equity, total 69,445 65,496
APPROPRIATIONS 17 282 261
Liabilities
Non-current liabilities 18 30,800 12,500
Current liabilities 19 90,544 89,816
Liabilities, total 121,344 102,316
TOTAL EQUITY AND LIABILITIES 191,071 168,074
FINANCIAL REVIEW | 52
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
EUR 1,000
Jan 1–Dec 31,
2021 FAS
Jan 1–Dec 31,
2020 FAS
OPERATING CASH FLOW
Cash receipts from Group companies 16,614 15,530
Operating expenses paid -14,374 -11, 871
Operating cash flow before financial items and taxes 2,240 3,659
Interest and payment paid for financial expenses -451 -399
Dividends and interest received 1,021 880
Income taxes paid -3,529 -2,957
Operating cash flow (A) -717 1,183
INVESTING CASH FLOW
Purchase of tangible and intangible assets -261 -165
Acquisition of subsidiaries -14,326 -6,504
Loans granted to Group companies -2,620 -635
Repayment of loans granted to Group companies 0 6,209
Change of internal bank account receivables 3,897 -2,044
Investing cash flow (B) -13,310 -3,140
PARENT COMPANY'S CASH FLOW STATEMENT
EUR 1,000
Jan 1–Dec 31,
2021 FAS
Jan 1–Dec 31,
2020 FAS
FINANCING CASH FLOW
Proceeds from directed share issue 1,936 0
Purchase of own shares -1,382 0
Issue of new current loans 6,653 10,000
Repayments of current loans -28,653 -8,696
Change of internal bank account liabilities 2,163 6,635
Issue of new non-current loans 37,500 0
Dividend paid -8,461 -8,682
Group contribution 11,000 13,000
Financing cash flow (C) 20,756 12,256
Variation in cash (A+B+C) increase (+) / decrease (-) 6,729 10,299
Assets at the beginning of the period 16,989 7,072
Exchange gains or losses on cash and cash equivalents 0 -383
Assets at the end of the period 23,718 16,989
FINANCIAL REVIEW | 53
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
FINANCIAL REVIEW | 54BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
NOTES TO THE FINANCIAL STATEMENTS OF
THE PARENT COMPANY
BASIS OF PREPARATION OF PARENT COMPANY FINANCIAL
STATEMENTS
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 software
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 measured.
Directly attributable costs, which are capitalized as part of the software product, include the software
development employee costs and an appropriate portion of relevant overheads. Other development
expenditures, that do not meet these criteria, are recognized as an expense as incurred. Development 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 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-current
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.
Accumulated appropriations in the parent company
There were no postponed depreciations of machinery and equipment at the end of the financial year.
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.
NOTES TO THE INCOME STATEMENT, PARENT COMPANY
1
REVENUE
EUR 1,000 2021 2020
Finland 16,265 15,228
Revenue consists of sofware and management fees from Etteplan Group companies..
2
OTHER OPERATING INCOME
EUR 1,000 2021 2020
Other operating income 15 46
Total 15 46
3
NUMBER OF PERSONNEL AND STAFF COSTS
2021 2020
Personnel
Personnel at year-end 64 56
Personnel, average 63 57
Personnel by category
Administration personnel 64 56
Total 64 56
EUR 1,000 2021 2020
Staff costs
Wages and salaries 5,435 4,309
Pension costs - defined contribution plans 737 573
Other indirect employee costs 127 97
Total 6,299 4,979
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 1,000 2021 2020
Auditing, KPMG Oy Ab 39 34
Auditor's statements based on laws and regulations, KPMG Oy Ab 5 2
Other services (tax services), KPMG Oy Ab 38 51
Other services (other services), KPMG Oy Ab 8 2
Total 89 90
5
OTHER OPERATING EXPENSES
EUR 1,000 2021 2020
Leasing and rents 1,885 1,514
IT costs 4,144 3,411
Services from Group companies 620 511
Other operating expenses 1,854 1,820
Total 8,503 7,256
6
FINANCIAL INCOME
EUR 1,000 2021 2020
Intra-Group dividend income 1,000 700
Dividend and interest income from others 10 7
Interest and other financial income, Intra-Group 40 85
Foreign exchange gain 181 14
Total 1,230 806
FINANCIAL REVIEW | 55
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
7
FINANCIAL EXPENSES
EUR 1,000 2021 2020
Intra-Group interest expense -2 0
Interest expense on borrowings from others 433 375
Foreign exchange loss 16 404
Total 447 779
8
APPROPRIATIONS
EUR 1,000 2021 2020
Group contributions received 13,000 11,000
Increase (-) / decrease (+) in depreciation in excess of plan -20 -13
Total 12,980 10,987
9
INCOME TAXES
EUR 1,000 2021 2020
Tax on income from operations 2,915 2,599
Tax corrections for previous accounting periods 1 -70
Total 2,916 2,529
NOTES TO THE BALANCE SHEET, PARENT COMPANY
10
INTANGIBLE ASSETS, PARENT COMPANY
2021
EUR 1,000
Intangible
rights
Internally
created
intangible
assets
Other intan-
gible assets
Advance
payments Goodwill Total
Acquisition cost Jan 1 5,514 0 153 0 2,500 8,167
Additions 116 0 0 77 0 193
Acquisition cost Dec 31 5,631 0 153 77 2,500 8,360
Cumulative amortization Jan 1 -5,033 0 -153 0 -1,527 - 6,713
Amortization for the financial year -226 0 0 0 -212 -438
Cumulative amortization Dec 31 -5,260 0 -153 0 -1,739 -7,151
Book value Dec 31, 2021 371 0 0 77 761 1,209
2020
EUR 1,000
Intangible
rights
Internally
created
intangible
assets
Other intan-
gible assets
Advance
payments Goodwill Total
Acquisition cost Jan 1 5,451 84 153 28 2,500 8,217
Additions 28 0 0 6 0 35
Disposals 0 -84 0 0 0 -84
Reclassifications between items 35 0 0 -35 0 0
Acquisition cost Dec 31 5,514 0 153 0 2,500 8,167
Cumulative amortization Jan 1 -4,768 -28 -153 0 -1,314 -6,263
Cumulative amortization on
disposals 0 56 0 0 0 56
Amortization for the financial year -266 -28 0 0 -212 -506
Cumulative amortization Dec 31 -5,033 0 -153 0 -1,527 -6,713
Book value Dec 31, 2020 481 0 0 0 973 1,454
FINANCIAL REVIEW | 56
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
11
TANGIBLE ASSETS, PARENT COMPANY
2021
EUR 1,000
Machinery and
equipment
Other tangible
assets Total
Acquisition cost Jan 1 1,288 59 1,347
Additions 62 6 68
Acquisition cost Dec 31 1,350 64 1,414
Cumulative depreciation Jan 1 -1,160 -55 -1,215
Depreciation for the financial year -30 -1 -31
Cumulative depreciation Dec 31 -1,19 0 -56 -1,246
Book value Dec 31, 2021 160 8 169
2020
EUR 1,000
Machinery and
equipment
Other tangible
assets Total
Acquisition cost Jan 1 1,161 55 1,217
Additions 127 3 130
Acquisition cost Dec 31 1,288 59 1,347
Cumulative depreciation Jan 1 -1,143 -55 -1,198
Depreciation for the financial year -17 0 -17
Cumulative depreciation Dec 31 -1,160 -55 -1,215
Book value Dec 31, 2020 128 3 131
12
INVESTMENTS, PARENT COMPANY
2021
EUR 1,000
Shares in Group
companies
Other
investments Total
Acquisition cost Jan 1 125,110 20 125,129
Increases 14,994 0 14,994
Acquisition cost Dec 31 140,104 20 140,124
Book value Dec 31, 2021 140,104 20 14 0,124
2020
EUR 1,000
Shares in Group
companies
Other
investments Total
Acquisition cost Jan 1 120,883 20 120,903
Increases 4,878 0 4,878
Decreases -652 0 -652
Acquisition cost Dec 31 125,110 20 125,129
Book value Dec 31, 2020 125,110 20 125,129
The parent company's direct holdings in Group companies are listed in point 32 "Related-party transactions"
of the notes to the consolidated financial statements.
13
NON-CURRENT RECEIVABLES
EUR 1,000 2021 2020
Non-current receivables from Group companies
Loan receivables 4,455 1,835
Non-current receivables, total 4,455 1,835
FINANCIAL REVIEW | 57
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
14
CURRENT RECEIVABLES
EUR 1,000 2021 2020
Current receivables from Group companies
Trade receivables 2,117 2,323
Internal bank account receivables 2,777 6,675
Group contribution receivables 13,000 11,000
Other receivables 1,556 1,487
Current receivables from others
Current prepayments and accrued income 1,822 1,043
Tax receivables 124 0
Other short-term receivables 0 8
Current receivables from others 21,397 22,535
Current prepayments and accrued income
Tax receivables 1,531 830
Other short-term receivables 291 213
Current receivables, total 1,822 1,043
15
CASH AND CASH EQUIVALENTS
EUR 1,000 2021 2020
Bank accounts and cash 23,718 16,989
Total 23,718 16,989
Cash and cash equivalents in the balance sheet correspond with the financial assets in the
cash flow statement.
16
EQUITY
EUR 1,000 2021 2020
Restricted equity
Share capital Jan 1 5,000 5,000
Share capital Dec 31 5,000 5,000
Share premium account Jan 1 6,701 6,701
Share premium account Dec 31 6,701 6,701
Restricted equity, total 11,701 11,701
Unrestricted equity
Unrestricted equity fund Jan 1 20,215 20,215
Share issue 1,936 0
Unrestricted equity fund Dec 31 22,150 20,215
Treasury shares Jan 1 -682 -1,323
Additions -1,382 0
Share-based incentive plan 0 641
Treasury shares Dec 31 -2,064 -682
Retained earnings Jan 1 34,262 31,989
Dividends paid -8,461 -8,682
Share-based incentive plan 0 -45
Retained earnings Dec 31 25,802 23,261
Profit for the financial year 11,856 11,001
Unrestricted equity total 57,744 53,795
Shareholders' equity, total 69,445 65,496
FINANCIAL REVIEW | 58
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
EUR 1,000 2021 2020
Distributable funds Dec 31
Retained earnings 25,802 23,261
Treasury shares -2,064 -682
Unrestricted equity fund 22,150 20,215
Profit for the financial year 11,856 11,0 01
Distributable funds Dec 31 57,744 53,795
Number of shares Jan 1 (1,000 pcs) 25,083 24,963
Number of shares Dec 31 (1,000 pcs) 25,083 24,963
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 1,000 2021 2020
Depreciation in excess of plan 282 261
Total 282 261
18
NON-CURRENT LIABILITIES
EUR 1,000 2021 2020
Loans from financial institutions 30,000 12,500
Accrued liabilities on acquisitions 800 0
Total 30,800 12,500
19
CURRENT LIABILITIES
EUR 1,000 2021 2020
Current liabilities to group companies
Trade payables 96 85
Other payables 0 15
Internal bank account liabilities 60,701 58,538
Current liabilities to others
Trade payables 1,760 1,712
Other liabilities 366 340
Accrued expenses 4,121 3,005
Income tax liability 0 489
Accrued liability on acquisitions 0 132
Loans from financial institutions 23,500 25,500
Current liabilities total 90,544 89,816
Main items included in accrued expenses
Interest liabilities 55 63
Accrued employee expenses 3,657 2,514
Other accrued expenses 408 428
Total 4,121 3,005
FINANCIAL REVIEW | 59
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
20
PLEDGES, MORTGAGES AND GUARANTEES
EUR 1,000 2021 2020
Guarantees given
Other contingencies 320 320
Guarantees for Group companies 155 91
Finance Lease liabilities
For payment in next financial year 2,995 2,736
For payment later 2,680 2,317
Operating Lease liabilities
For payment in next financial year 556 444
For payment later 707 1,148
Credit limits
Total credit limit available 8,439 8,491
Pledges, mortgages and guarantees total 15,853 15,547
Etteplan Oyj has given a Parent Company guarantee totalling EUR 663 thousand for loans, of which EUR 0 is
in use, for Etteplan Poland sp.z.o.o.
FINANCIAL REVIEW | 60BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Shares and shareholders
Share capital and shares
On December 31, 2021, Etteplan Oyj’s share capital, entered in the trade register and paid in full, was EUR
5,000,000 and the number of shares was 25,083,308. The Company has one series of shares. Each share
confers the right to one vote at the General Meeting and the same right to a dividend.
Share quote
Etteplan’s shares are listed on Nasdaq Helsinki Ltd’s Mid Cap market capitalization group in the Industrials
sector under the ETTE ticker (FI0009008650).
Share price trend and turnover
The number of Etteplan Oyj shares traded in 2021 was 1,539,757 (2020: 1,564,244), for a total value of EUR
25.15 (14.80) million. The share price low was EUR 12.95, the high EUR 19.45, the average EUR 16.33 and
the closing price EUR 16.90. Market capitalization on December 31, 2021, was EUR 421,22 (322.25) million.
Etteplan Oyj and Lago Kapital Ltd have a market making agreement in compliance with the Liquidity
Providing (LP) requirements issued by Nasdaq Helsinki Ltd, under which the market making began on
February 17, 2020. According to the agreement, Lago Kapital Ltd will provide Etteplan Oyj’s share with
bids and offers so that the maximum spread is 4 percent, calculated from the bid quotation. Both bid and
offer side shall include a number of shares corresponding to the value of at least EUR 3,000. Lago Kapital
Ltd undertakes to submit bids and offers for the share of Etteplan Oyj on the trading system maintained
by Nasdaq Helsinki Ltd on each trading day for at least 85 percent of the time of continuous trading. The
market making agreement aims at increasing the share´s liquidity and decreasing the share price volatility,
thus facilitating trading for private investors in particular.
Shareholders
At the end of 2021, the Company had 3,604 (3,323) registered shareholders. In total, 557,449 shares, or
2.22 (1.70) percent of all shares, were nominee-registered.
Flaggings
Etteplan Oyj received no flagging notices during year 2021.
Treasury shares
In its meeting on May 21, 2021, Etteplan Oyj’s Board of Directors decided to initiate a share repurchase
program of Etteplan’s own shares in accordance with the authorization given to it by the Annual General
Meeting on April 8, 2021. The shares were repurchased in order to be used to fulfill obligations pertaining
to the share-based incentive plan for the Group’s key personnel. The number of repurchased shares did not
exceed 80,000 shares and the corresponding number of voting rights, which corresponded to approximately
0.32 percent of the total number of Etteplan’s shares. According to the Board’s decision, the maximum
repurchase price was EUR 19.00 per share. Shares were repurchased on Nasdaq Helsinki Ltd at the market
price quoted at the time of the repurchase, as provided by the regulations on public trading of shares.
The repurchasing of shares began on May 21, 2021, and ended on October 12, 2021, when the
maximum amount of repurchased shares was reached.
In 2021, Etteplan repurchased a total of 80,000 of the Company’s own shares. The Company held
159,046 of its own shares on December 31, 2021 (December 31, 2020: 79,046), which corresponds to 0.63
percent of all shares and voting rights.
The Company does not have a share repurchase program in effect.
FINANCIAL REVIEW | 61BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Board authorizations
The Annual General Meeting 2021 authorized 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.
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
determined 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) percent 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
consideration 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 reduce 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 8, 2021, and ending on October 7, 2022. The authorization replaces the
corresponding previous authorization.
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
entitling to shares under Chapter 10, Section 1 of the Finnish Companies Act in one or more issues. The
authorization 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
conditions 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
decide 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.
Directed share issue to the owners of Skyrise.tech S.A. in 2021
In a stock exchange release published on June 14, 2021, Etteplan announced it had acquired the Polish
software development company Skyrise.tech S.A. and would carry out a directed share issue to the owners
of the acquired company. In accordance with the terms of the share issue, Etteplan offered 120,000 new
Etteplan shares for subscription to the owners of Skyrise.tech.
In its meeting on June 17, 2021, Etteplan’s Board of Directors resolved on the final terms of the
directed share issue pursuant to the share issue authorization granted to it by the Annual General Meeting
of Shareholders held on April 8, 2021. The key terms of the share issue were announced in a stock exchange
release on June 17, 2021.
The shares were entered in the trade register on August 18, 2021, and issued in the form of book-
entry securities in the book-entry securities system maintained by Euroclear Finland Oy in the beginning of
September.
FINANCIAL REVIEW | 62BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
The shares were conveyed, and they bear all shareholder rights starting from their entry into the trade
register. However, trading in the new shares will only be possible after the expiration of the three-year lock-
up period agreed upon at the time of the transaction.
After the directed share issue, Etteplan’s Board of Directors may, based on the authorization granted
by the Annual General Meeting 2021, decide on the issuance of a maximum of 2,380,000 more shares
through issuance of shares or in another manner specified in the authorization. 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 or option rights.
Directed share issue to the owners of Syncore Technologies AB in 2022
As part of the financing of the transaction, Etteplan Oyj's Board of Directors, at its meeting held on February
1, 2022, made a conditional decision on the share issue based on the share issue authorization given to the
Board of Directors by the Annual General Meeting on April 8, 2021. The directed share issue was related to
the acquisition of Syncore Technologies AB. 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
Etteplan new shares as a part payment for the purchase amount. The subscription price per share to be paid
for the shares was EUR 16.42.
After the share issue the number of Etteplan shares will be 25,200,793.
Option rights
The Company does not currently have a share option program.
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 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
covers the same years as Etteplan’s strategy update published in 2019. The plan is in line with Etteplan’s
strategy and supports the achievement of the Company’s financial targets.
The earnings criteria are Etteplan 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.
FINANCIAL REVIEW | 63BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Major shareholders, December 31, 2021
Name Number of shares
Proportion of shares and
votes, %
Ingman Group Oy Ab 16,580,000 66.10
Oy Fincorp Ab 2,517,000 10.03
Varma Mutual Pension Insurance Company 985,593 3.93
SEB Gyllenberg Finland Small Cap Fund 480,000 1.91
Tuori Klaus Tapani 309,134 1.23
Tuori Aino Mirjami 308,275 1.23
Ilmarinen Mutual Pension Insurance Company 28 8,311 1.15
Elo Mutual Pension Insurance Company 209,662 0.84
VAS Invest Oy 194,035 0.77
Taaleritehdas Mikro Markka Fund 164,048 0.65
Etteplan Oyj 159,046 0.63
Näkki Juha Antti Ilmari 110,8 4 8 0.44
OP-Finland Micro Cap 103,387 0.41
Mäkelä Esa Tapio 58,818 0.23
Kylänpää Osmo Olavi 53,200 0.21
Ingman Robert Carl 50,000 0.20
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
Other shareholders 1,799,907 7.18
Nominee-registrated shares 557,4 49 2.22
Total 25,083,308 100.00
Breakdown of shareholdings by size class, December 31, 2021
Number of shares, pcs
Number of
shareholders
Proportion of
shareholders, % Number of shares
Proportion of
shares and votes,
%
1–100 1,736 4 8.17 64,850 0.26
101–1,000 1,505 41.76 567,333 2.26
1,001–10,000 320 8.88 881,028 3.51
10,001–100,000 29 0.80 803, 811 3.20
100,001–1,000,000 12 0.33 3,669,286 14.63
> 1,000,000 2 0.06 19,097,000 76.13
Total 3,604 100.00 25,083,308 100.00
Breakdown of shareholdings by owner group,
December 31, 2021
Name of the sector
Number of
shareholders Number of shares
Proportion of
shares and votes,
%
National economy total (domestic sector)
Companies 115 17,14 6,011 68.36
Financial and insurance institutions 19 3,356,776 13.38
Public sector entities 5 1,4 87, 279 5.93
Households 3,432 2,489,506 9.92
Non-profit institutions 12 25,639 0.10
Foreigners 21 20,648 0.08
Nominee-registered shares 557,4 49 2.22
Total 3,604 25,083,308 100.00
FINANCIAL REVIEW | 64
BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Board of Directors’
dividend proposal
On December 31, 2021, the parent company’s distributable shareholders’ equity amounted to EUR 57.7
million, of which the net profit for the financial year was EUR 11.9 million.
The Board of Directors proposes that from the distributable funds at the disposal of the Annual General
Meeting, a dividend of EUR 0.40 per share be paid on the Company’s externally owned shares, for a
maximum amount of EUR 10.0 million. Dividend will not be paid out to shares that are company-held on the
record date of dividend payout, April 8, 2022.
No substantial changes have occurred in the financial position of the Company since the end of the financial
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 19, 2022.
Espoo, February 10, 2022
Robert Ingman
Chairman of the Board
Leena Saarinen
Member of the Board
Matti Huttunen
Member of the Board
Mikko Tepponen
Member of the Board
Päivi Lindqvist
Member of the Board
FINANCIAL REVIEW | 65BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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, 2021. The financial statements comprise the consolidated statement of financial
position, 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
company 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 procedures 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.
FINANCIAL REVIEW | 66BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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
Regulation 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 Statements
• Goodwill, totaling EUR 92.4 million, has
increased by EUR 9.1 million during the financial
period as a result of acquisitions, and is a
significant individual item in the consolidated
balance sheet.
• Goodwill is tested for impairment when
indicators of impairment exist, or at least
annually. Goodwill impairment testing is
conducted by comparing the carrying value
with the recoverable amount using a discounted
cash flow model. Estimating future cash flows
underlying the impairment tests involves 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 audit
matter due to the significant carrying value and
high level of management judgement involved.
• We critically analyzed the management's
assumptions that form the basis on which
the cash flow projections for future years are
prepared.
• We involved KPMG valuation specialists to assess
the appropriateness of the discount rate used and
the technical integrity of calculations as well as
for comparison of the assumptions 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 statements.
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED
IN THE AUDIT
Revenue Recognition – Accounting Policies and Note 7 to the Consolidated
Financial Statements
• Revenue recognition consists mainly of revenue
from rendering of services. Total revenue
amounted to EUR 300.1 million.
• Revenue recognition is a key audit matter due
to the significance of revenue when assessing
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 estimates 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 percentage
of completion method. The percentage of
completion is determined as the proportion of
actual costs to the total estimated project costs.
Inaccurate cost estimates lead to erroneous
revenue recognition.
• We evaluated the company’s revenue recognition
and accounting policies by reference 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 systems for
financial reporting purposes.
• We compared total revenue estimates to
customer contracts for projects where revenue
is recognized over time based on the project’s
percentage of completion. In addition, we
analyzed working hours recorded for work
in progress projects in comparison to total
hours estimated by the management. We also
considered the appropriateness of the process for
updating estimated project costs and percentages
of completion.
• In addition, we performed substantive audit
procedures to evaluate the completeness and
accuracy of revenue recorded and assessed the
effect of other events which require management
judgment.
FINANCIAL REVIEW | 67BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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
financial 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 statutory 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 applicable, 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.
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
conducted 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
maintain 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
estimates 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
uncertainty 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 statements 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
disclosures, 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
business 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
responsible for our audit opinion.
FINANCIAL REVIEW | 68BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
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 matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
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 5 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other
information 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 information.
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, 2022
KPMG OY AB
Kim Järvi
Authorized Public Accountant, KHT
FINANCIAL REVIEW | 69BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
To the Board of Directors of Etteplan Oyj
We have undertaken a reasonable assurance engagement on the iXBRL marking up of the consolidated
financial statements for the year ended 31 December, 2021, included in the Etteplan Oyj’s digital files
[7437006I5533R06JU690-2021-12-31-en.zip] prepared 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
Directors 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 consolidated financial statements 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.
Independent Auditor’s Reasonable Assurance Report
on Etteplan Oyj’s ESEF Financial Statements
Auditor’s Independence and Quality Control
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 obligations in
accordance with these requirements.
The auditor applies International Standard on Quality Control 1 and accordingly maintains a
comprehensive system of quality control including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
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 consolidated financial statements included in the ESEF financial statements are, in all material
respects, marked up with iXBRL tags in accordance with Article 4 of the ESEF RTS, and;
• the ESEF financial statements and the audited financial statements are consistent with each other.
FINANCIAL REVIEW | 70BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
The nature, timing and the extent of procedures selected depend on practitioner’s judgement. This includes
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 consolidated financial statements included in the ESEF financial statements of Etteplan
Oyj’s identified as [7437006I5533R06JU690-2021-12-31-en.zip] for the year ended 31 December, 2021 are
marked up, in all material respects, in compliance with the ESEF Regulatory Technical Standard.
Our audit opinion relating to the consolidated financial statements of Etteplan Oyj’s for the year ended
31 December, 2021 is set out in our Auditor’s Report dated 28 February, 2022. In this report, we do not
express an audit opinion, review conclusion or any other assurance conclusion on the consolidated financial
statements.
Helsinki 9 March, 2022
KPMG OY AB
Kim Järvi
Authorised Public Accountant, KHT
FINANCIAL REVIEW | 71BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Investor information
Etteplan’s shares are listed on Nasdaq Helsinki Ltd’s Mid Cap market capitalization group in the Industrials
sector under the ETTE ticker.
Etteplan’s investor relations principles
According to the Disclosure Policy approved by Etteplan’s Board of Directors, Etteplan is committed to active
and open communication with all parties, regardless of whether the information in question is positive
or negative for the Company. The Company’s communications are transparent, credible, proactive and
consistent in all circumstances. The principle is to be open, truthful and quick in all communications. The
aim is to provide truthful, sufficient and up-to-date information on the Company’s strategy, businesses,
markets and financial situation to provide the capital markets with relevant information on Etteplan as an
investment. Etteplan’s Disclosure Policy is available on the Company’s website at www.etteplan.com.
Investor relations are always part of the Company’s other communications. Investor relations are based
on the same core messages and values as the Company’s other operations and communications. In all of
its communications, Etteplan emphasizes consistency and a high standard of ethics and complies with the
guidelines and regulations concerning listed companies.
A stable dividend payer
Etteplan’s aim is to increase shareholder value and to be a stable dividend payer. The dividend has been
approximately 50 percent of earnings per share.
The Annual General Meeting on April 8, 2021, resolved, in accordance with the proposal of the Board
of Directors, to pay a dividend of EUR 0.34 per share for the financial year 2020. The remaining funds were
to be left in unrestricted equity. The dividend was paid to the shareholders registered on the record date,
April 12, 2021, in the shareholders’ register maintained by Euroclear Finland Ltd. The dividend was paid on
April 19, 2021.
The Board of Directors proposes to the Annual General Meeting of April 6, 2022 that a dividend of
EUR 0.40 per share be paid for the financial year 2021. If the Annual General Meeting approves the Board’s
proposal on the payment of dividend, the dividend shall be paid to the shareholders registered on the record
date of the payment of dividend, April 8, 2022, in the shareholders’ register maintained by Euroclear Finland
Ltd. The dividend payment date proposed by the Board of Directors is April 19, 2022.
Outlook
Etteplan may issue estimates of its market outlook and the development of the Company’s revenue and
result in its Financial Statement Review, Half Year Financial Report and Interim Reports. Etteplan issues
guidance for revenue and operating profit (EBIT) as a numerical range. Outlook statements are approved by
Etteplan’s Board of Directors. Etteplan does not publish quarterly forecasts. Future outlook statements and
result estimates may be numerical or verbal and they may concern the development of revenue, the result,
the balance sheet or the cash flow. The estimates published by the Company are based on the views of
future development at the time of publication and they are generally issued for the current financial year.
2017 2018 2019 2020 2021
Earnings per share and Dividend
XXX
0.47
0.62
0.70
0.69
0.80
0.23
0.30
0.35
0.34
0.40*
Issue adjusted earnings
per share
Dividend
* Board’s dividend proposal
2017 2018 2019 2020 2021
Share price development 2017−2021
16.33
Volume-weighted
average price
FINANCIAL REVIEW | 72BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
Periodic fluctuation
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. Only the key figures in the Financial Statements for the entire year provide an appropriate
description of the Company’s financial situation.
Silent period
Etteplan observes a silent period of 30 days prior to the announcement of financial results. During this
period, the Company’s representatives do not meet or otherwise make contact with shareholders, investors,
analysts, other market participants or the financial media. The Company’s representatives do not comment
on financial development, the market situation or the future outlook during the silent period. At other times,
we are pleased to respond to inquiries and arrange meeting.
Analysts following Etteplan
Evli Bank Plc, Jerker Salokivi, tel. +358 9 4766 9149
Inderes Oy, Juha Kinnunen, tel. +358 40 778 1368
Nordea Bank Plc, Pasi Väisänen, tel. +358 9 5300 5192
Upon request, the Company will review analyses or reports compiled by an analyst for factual errors, insofar
as the reports and analyses are based on materials released by the Company. Etteplan does not comment on
or take any responsibility for estimates or forecasts published by capital market representatives.
Investor relations contacts
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, Senior Vice President, Communications and Marketing, tel. +358 10 307 3302
Helena Kukkonen, CFO, +358 10 307 2003
Important dates in 2022:
Financial Statement Review: February 10, 2022
Record date for participation in the General Meeting: March 25, 2022
Annual Review: week 11/2022 at the latest
Deadline for registration for the General Meeting: April 1, 2022, at 10 a.m.
General Meeting: April 6, 2022, at 9 a.m.
Record date for the payment of dividend: April 8, 2022
Dividend payment date: April 19, 2022
Interim Report 1–3/2022: Thursday, May 5, 2022
Half Year Financial Report 1–6/2022: Wednesday, August 10, 2022
Interim Report 1–9/2022: Friday, October 28, 2022
Etteplan Oyj publishes its Annual Review and other financial reports and stock exchange releases in Finnish
and English. Financial reports, webcasts of the announcement of financial results and releases are made
available at www.etteplan.com immediately after their publication.
FINANCIAL REVIEW | 73BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION
General meeting of shareholders
Etteplan Oyj’s Annual General Meeting will be held on Wednesday, April 6, 2022, starting at 9 a.m. in
Espoo, Finland at Innopoli 1 (Leonardo auditorium), Tekniikantie 12, 02150 Espoo. The invitation to the
General Meeting of Shareholders will be published according to Etteplan Oyj’s Articles of Association on the
Company website www.etteplan.com.
Right to attend
Every shareholder who, on March 25, 2022, is registered in the shareholder's register maintained by
Euroclear Finland Ltd has the right to participate in the Annual General Meeting.
Notification of attendees
To be able to participate in the Annual General Meeting, the shareholder must register for this no later
than 10 a.m. on April 1, 2022, either by e-mail at registration@etteplan.com or by telephone at
+358 10 307 3222. Shareholders may also register by sending a registration letter to Etteplan Oyj,
Yhtiökokous 2022, Tekniikantie 4, 02150 Espoo, Finland. The letter must arrive before the registration
deadline. Any proxy documents, identified and dated, must be delivered to the Company for inspection to
the address mentioned above prior to the expiry of the registration period.
Shareholder register information
Shareholders should notify the bank, brokerage firm or other account operator with which they have a book-
entry securities account about changes in address or account numbers for the payment of dividends and
other matters related to their holdings in the share.
FINANCIAL REVIEW | 74BOARD OF DIRECTORS’ REVIEW FINANCIAL STATEMENTS INVESTOR INFORMATION