ETTEPLAN OYJ
BUSINESS ID 0545456-2
Consolidated Financial Statements
1 January – 31 December 2023
2
CONTENTS
Board of Directors’ Review January 1 – December 31, 2023 ............................................................................................... 5
Consolidated Financial Statements .......................................................................................................................................... 17
Consolidated Statement of Comprehensive Income ...................................................................................................... 17
Consolidated Statement of Financial Position .................................................................................................................. 18
Consolidated Statement of Cash Flows ............................................................................................................................. 19
Consolidated Statement of Changes in Equity ................................................................................................................. 20
Notes to the Consolidated Financial Statements ............................................................................................................. 21
1 General information ......................................................................................................................................................... 21
2 A summary of significant accounting policies ............................................................................................................ 21
3 Critical accounting estimates and management judgment based decisions ...................................................... 29
4 Management of financial risks ....................................................................................................................................... 30
5 Business combinations .................................................................................................................................................... 34
6 Segment reporting ............................................................................................................................................................ 38
Notes to Consolidated Comprehensive Income ........................................................................................................... 39
7 Revenue from contracts with customers .................................................................................................................... 39
8 Other operating income .................................................................................................................................................. 40
9 Non-recurring items ......................................................................................................................................................... 40
10 Materials and Services .................................................................................................................................................. 40
11 Number of personnel and employee benefits expenses ...................................................................................... 40
12 Other operating expenses............................................................................................................................................ 42
13 Audit fees ......................................................................................................................................................................... 43
14 Financial income ............................................................................................................................................................. 43
15 Financial expenses ......................................................................................................................................................... 43
16 Translation differences recognized in income statement .................................................................................... 43
17 Income taxes ................................................................................................................................................................... 44
18 Earnings per share ......................................................................................................................................................... 45
Notes to Consolidated Balance Sheet ............................................................................................................................ 45
19 Goodwill and other intangible assets ........................................................................................................................ 45
20 Tangible assets ............................................................................................................................................................... 46
21 Financial instruments by measurement category .................................................................................................. 48
22 Impairment testing ......................................................................................................................................................... 49
23 Inventory .......................................................................................................................................................................... 51
24 Trade and other receivables ....................................................................................................................................... 51
25 Equity ................................................................................................................................................................................ 51
26 Share-based payments ................................................................................................................................................. 52
27 Interest-bearing liabilities ............................................................................................................................................. 54
3
28 Other non-current liabilities......................................................................................................................................... 55
29 Trade and other payables ............................................................................................................................................ 55
30 Deferred taxes ................................................................................................................................................................ 56
Other notes to the Consolidated Financial Statements .............................................................................................. 57
31 Pledges, mortgages and guarantees .......................................................................................................................... 57
32 Related-party transactions .......................................................................................................................................... 57
33 Events after the balance sheet date .......................................................................................................................... 59
Parent Company’s Financial Statements ................................................................................................................................ 60
Parent Company’s Income Statement ................................................................................................................................ 60
Parent Company’s Balance Sheet ........................................................................................................................................ 61
Parent Company’s Cash Flow Statements ........................................................................................................................ 62
Notes to the Financial Statements of the Parent Company .......................................................................................... 63
Parent company’s accounting policies ........................................................................................................................... 63
Notes to the Income Statement, parent company ....................................................................................................... 64
1 Revenue .............................................................................................................................................................................. 64
2 Other operating income .................................................................................................................................................. 64
3 Number of personnel and staff costs .......................................................................................................................... 64
4 Audit fees............................................................................................................................................................................ 64
5 Other operating expenses .............................................................................................................................................. 65
6 Financial income ............................................................................................................................................................... 65
7 Financial expenses ........................................................................................................................................................... 65
8 Appropriations .................................................................................................................................................................. 65
9 Income taxes...................................................................................................................................................................... 65
Notes to the Balance Sheet, parent company............................................................................................................... 66
10 Intangible assets ............................................................................................................................................................. 66
11 Tangible assets ............................................................................................................................................................... 67
12 Investments ..................................................................................................................................................................... 67
13 Non-current receivables ............................................................................................................................................... 68
14 Current receivables ....................................................................................................................................................... 68
15 Cash and cash equivalents .......................................................................................................................................... 68
16 Equity ................................................................................................................................................................................ 69
17 Accumulated appropriations ....................................................................................................................................... 69
18 Non-current liabilities .................................................................................................................................................... 70
19 Current liabilities ............................................................................................................................................................ 70
20 Pledged, mortgages and guarantees ......................................................................................................................... 70
21 Events after the balance sheet date .......................................................................................................................... 71
Signature of Financial Statements ................................................................................................................................... 72
4
Auditor’s note ....................................................................................................................................................................... 72
Auditor’s Report ................................................................................................................................................................... 73
Independent Auditor’s Reasonable Assurance Report on Etteplan Oyj’s ESEF Financial Statements ............ 78
List of accounting books and types of vouchers .......................................................................................................... 80
This document is an English translation of the Finnish financial statements. Only the Finnish version of the report is legally
binding.
5
Board of Directors’ Review January 1 – December 31,
2023
OPERATING ENVIRONMENT
The majority of Etteplan’s customers are industrial companies with several global megatrends currently influencing the devel-
opment of their operating environment. For example, structural changes in the global economy, urbanization, climate change
and sustainability 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
growing need for highly competent employees. In particular, the application of artificial intelligence in various applications is
accelerating. These trends are creating a need for intelligent and energy-efficient 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. The competition for employees has eased slightly in the prevailing
market situation, but there is continued competition for specialized experts in certain areas.
The most important factor affecting Etteplan’s business is the global development of the machinery and metal industry. In-
creased geopolitical tensions are maintaining uncertainty globally. Uncertainty and the rise in interest rates caused by inflation
have reduced our customers’ willingness to invest and weakened the demand situation in certain customer industries. Never-
theless, investments related to the defense industry, energy efficiency and accelerating the green transition are continuing to
grow. There are fluctuations in demand, and the year 2024 begins in an uncertain and slightly weaker demand situation. The
markets expect interest rates to fall in 2024, and we believe this will boost investments and improve the demand situation to a
good level.
DEVELOPMENT OF DEMAND BY CUSTOMER INDUSTRY
The elevated geopolitical tensions affect demand in all customer industries. Demand in the Forest, Pulp and Paper industry
weakened slightly. Demand in the Energy industry was at a good level, as was demand in the Defense industry. Demand in the
Mining industry weakened slightly. Demand in the Lifting and Hoisting industry decreased slightly. Demand in the ICT industry
was at a weak level. Demand in the Automotive and Transportation industry was at a good level. Demand in the Chemical in-
dustry was at a moderate level.
DEVELOPMENT OF DEMAND IN ETTEPLAN’S OPERATING COUNTRIES
Growing geopolitical tensions, inflation and rising interest rates have increased uncertainty in all of our operating countries in
Europe, and several European countries are in a slight recession, which is reflected in demand. Based on order development in
late 2023, it is estimated that the revenue growth of technology industry companies in Finland will stop or even turn to a de-
crease. Geopolitical tensions have also increased uncertainty in China, as a result of which Western investments are partly
shifting elsewhere, which weakens the demand situation.
REVENUE
The weakening of demand due to the uncertainty of the market, the challenges of the operating environment and the slowing
of customer decision-making affected the revenue accumulation for the entire year.
Etteplan’s revenue increased by 2.8 percent and was EUR 360.0 million (1-12/2022: EUR 350.2 million). Revenue increased by
4.7 percent at comparable exchange rates. The organic growth of revenue was 0.5 percent. At comparable exchange rates,
organic growth was 2.4 percent. Revenue from key accounts decreased by 1.2 percent.
6
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 of acquired companies is not included in organic revenue growth for 12 months following their acquisition. LAE
Engineering GmbH is included in Etteplan’s figures starting from July 1, 2023, and High Vision Engineering Sweden AB starting
from September 1, 2023.
RESULT
The weakening of demand due to the uncertainty of the market, the challenges of the operating environment and the slowing
of customer decision-making affected the result for the entire year.
Operating profit (EBITA) decreased by 8.9 percent and was EUR 30.9 (33.9) million, or 8.6 (9.7) percent of revenue.
Operating profit (EBIT) decreased by 10.8 percent and was EUR 25.5 (28.6) million, or 7.1 (8.2) percent of revenue.
The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) was EUR -1.7 (-1.0) million.
The non-recurring items consisted of expenses related to organizational restructuring and acquisitions.
The net amount of financial income and financial expenses came to EUR -4.7 (-6.2) million. The Semcon offer had an effect of
EUR -5.1 million on financial expenses in the comparison period. The general increase in interest rates has affected financial
costs.
Profit before taxes was EUR 20.8 (22.4) million. Taxes in the income statement amounted to 20.0 (18.9) percent of the result
before taxes. The amount of taxes was EUR 4.2 (4.2) million.
The profit for was EUR 16.6 (18.2) million.
Earnings per share were EUR 0.66 (0.73). Equity per share was EUR 4.55 (4.25) at the end of December. Return on capital em-
ployed (ROCE) before taxes was 13.3 (15.9) percent.
CASH FLOW AND FINANCIAL POSITION
Operating cash flow improved and was EUR 35.6 (28.1) million. Cash flow after investments was EUR 28.7 (2.6) million. Operat-
ing cash flow accrues unevenly over the four quarters of the year due to periodic fluctuation in business.
The Group’s cash and cash equivalents stood at EUR 23.4 (19.6) million at the end of December.
The Group’s interest-bearing liabilities amounted to EUR 86.6 (90.6) million at the end of December. The amount of interest-
bearing liabilities was affected by acquisitions made by the Group. Lease liabilities represented EUR 21.4 (21.6) million of inter-
est-bearing liabilities.
The total of unused short-term credit facilities stood at EUR 14.1 (12.6) million.
Total assets on December 31, 2023, were EUR 284.6 (281.1) million. Goodwill on the balance sheet was EUR 109.7 (105.4) mil-
lion.
At the end of December, the equity ratio was 40.9 (38.2) percent.
CAPITAL EXPENDITURE
The Group’s gross investments were EUR 21.1 (40.9) million. The gross investments mainly consisted of acquisitions, increases
in lease liabilities and equipment purchases.
PERSONNEL
The number of personnel stood at 3,902 (3,929) employees at the end of December 2023. The number of personnel decreased
by 0.7 percent compared to the end of 2022. Due to the unpredictable market situation, we have slowed down recruitment
and implemented temporary layoffs during the review period. A total of 72 employees in Finland were temporarily laid off at
the end of December 2023.
7
The Group employed 3,949 (3,936) people on average in January-December 2023.
The number of people employed by the Group outside of Finland increased and stood at 1,965 (1,941) at the end of December,
representing 50 (49) percent of the total number of employees.
BUSINESS REVIEW
The implementation of Etteplan’s strategy, which was published in December 2019 and titled Increasing value for customers,
was delayed due to COVID-19. The strategy established for 2020-2022 has, nevertheless, proved its effectiveness, and the
targets have steered Etteplan in the right direction. Consequently, the Board of Directors decided on April 5, 2023, to extend
the strategy period to 2023-2024. In connection with this decision, the company updated its financial targets for 2023-2024.
The targets will be achieved through strong execution of the strategy.
Updated financial targets for 2023-2024:
• Growth: revenue more than EUR 500 million in 2024 (no change)
• International growth: The share of revenue coming from outside Finland is at least 55 percent in 2024 (target % changed,
previous target: 50 percent in 2024)
• Managed Services: The share of revenue from Managed Services is 75 percent (Managed Services Index, MSI) in 2024 (no
change)
• Protability: operating prot (EBITA) over 10 percent of revenue (target changed, previous target: 10 percent)
Digitalization and the growing need for talented employees are key industry trends that affect the operations of Etteplan and
its customers. The importance of sustainability has grown even more, and it has an essential role in the business of Etteplan
and its customers. The key objective of Etteplan’s strategy is to create even higher value for customers and to support them in
the industrial change and in the development of sustainable business.
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 and increasing technology solutions in the offering,
as well as 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, and other digital technologies. The use of artificial intelligence in
various applications is accelerating, and we have launched a development program to use artificial intelligence in our business.
Etteplan’s target is to achieve revenue of over 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 at least 55 percent.
Revenue accumulated outside Finland amounted to EUR 177.6 (169.1) million, or 49 (48) percent of the Group’s total revenue.
Revenue from key accounts decreased by 1.2 percent.
The Chinese market slowed down in the fourth quarter due to geopolitical tensions, and we have had to adapt our business
due to the uncertain situation. The number of hours sold in the Chinese market decreased by 11.0 percent.
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 stood at 68 (66) percent. The growth in the share of Managed Services enhances Etteplan’s
capacity management and improves profitability. Etteplan’s operating profit (EBITA) target is over 10 percent of revenue.
ACQUISITIONS
In September 2023, Etteplan acquired High Vision Engineering Sweden AB, a company that provides engineering services
across various phases of product development for the automotive and manufacturing industry in western Sweden. As a result
of the acquisition, 40 High Vision Engineering employees transferred to Etteplan.
8
In July 2023, Etteplan acquired LAE Engineering GmbH, a German engineering company with approximately 70 employees that
offers specialized expertise across electrical engineering planning, power generation, building and industrial automation, as
well as information management systems, and industrial IT. LAE Engineering is now part of our Engineering Solutions service
area.
Acquisitions in 2022:
• June 2022 - DDCom B.V., the Netherlands, which employs approximately 15 experts in 3D content-based animation and visu-
alization services related to technical documentation.
• May 2022 - LCA Consulting Oy, a provider of high-quality expert services, founded in 2013 as a spin-off at LUT University.
Based in Lappeenranta, Finland, LCA Consulting employs 11 experts focusing on life cycle assessment of companies, products
and production, carbon footprinting and expert training.
• February 2022 - Syncore Technologies AB, a Sweden-based technology services company focusing on advanced embedded
systems, which employs 46 experts in embedded systems.
• January 2022 - Cognitas GmbH, a German technical information life cycle management company. Cognitas employs 200 pro-
fessionals in consulting and technical information authoring and management.
GOVERNANCE
GENERAL MEETING
Etteplan Oyj’s Annual General Meeting was held on April 5, 2023. The Annual General Meeting approved the financial state-
ments and discharged the members of the Board of Directors and the President and CEO from liability for the financial year
2022.
The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, to pay a dividend of EUR
0.36 per share for the financial year 2022 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 main-
tained by Euroclear Finland Ltd. The record date for the dividend payout was April 11, 2023, and the date of dividend payout
was April 18, 2023.
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 seven members. In accordance with the proposal of the Nomination and Remunera-
tion 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 Gen-
eral Meeting re-elected Matti Huttunen, Robert Ingman, Päivi Lindqvist, Leena Saarinen and Mikko Tepponen as members of
the Board of Directors. The Annual General Meeting further elected Sonja Sarasvuo and Tomi Ristimäki as new members of the
Board of Directors. KPMG Oy Ab, Authorized Public Accountants, with Authorized Public Accountant Kim Järvi as the main re-
sponsible 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 Mikko Teppo-
nen as members of the Nomination and Remuneration Committee of Etteplan Oyj. Päivi Lindqvist was elected as the Chairman
and Leena Saarinen, Sonja Sarasvuo and Tomi Ristimäki as members of the Audit Committee of Etteplan Oyj.
BOARD AUTHORIZATIONS
The Annual General Meeting held on April 5, 2023, decided to authorize the Board of Directors to resolve on the repurchase of
the company’s own shares in one or more tranches using the company’s unrestricted equity. A maximum of 2,000,000 shares
in the company may be repurchased. The company may deviate from the obligation to repurchase shares in proportion to the
shareholders’ current holdings, i.e. the Board has the right to decide on a directed repurchase of the company’s own shares.
9
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 repur-
chased 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 5,
2023, and ending on October 4, 2024. The authorization replaces the corresponding previous authorization.
The Annual General Meeting held on April 5, 2023, 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 Chap-
ter 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 there-
fore 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 com-
pany 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 other-
wise 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 18 months from the date of the resolution of the Annual General Meeting starting on April 5,
2023, and ending on October 4, 2024.
SHARES
Etteplan’s shares are listed in Nasdaq Helsinki Ltd’s Mid Cap market capitalization group in the Industrials sector under the
ETTE ticker. The company has one series of shares. All shares confer an equal right to a dividend and the company’s funds.
The company’s share capital on December 31, 2023, was EUR 5,000,000.00 and the total number of shares was 25,200,793.
TRADING IN SHARES
The number of Etteplan Oyj shares traded in January-December was 383,929 (1-12/2022: 517,686), for a total value of EUR
6.08 (8.0) million. The share price low was EUR 12.40, the high EUR 18.65, the average EUR 15.84 and the closing price EUR
13.80. Market capitalization on December 31, 2023, was EUR 346.38 (365.61) million. On December 31, 2023, Etteplan had
3,584 (3,696) shareholders.
OWN SHARES
On May 11, 2023, Etteplan Oyj’s Board of Directors decided to initiate a share repurchase program of own shares in accord-
ance with the authorization given to it by the Annual General Meeting on April 5, 2023, according to which the number of re-
purchased shares will not exceed 30,000 shares and the corresponding number of voting rights.
On December 20, 2023, Etteplan Oyj announced it had completed the repurchase program of its own shares. The repurchases
of shares began on June 2, 2023, and ended on December 19, 2023. During that period, the company acquired a total of
30,000 shares and number of voting rights at an average price of EUR 16.2075 in public trading on Nasdaq Helsinki Ltd for the
10
market price quoted at the time of the repurchase, as provided by the regulations on public trading of shares. The repur-
chased shares are used for carrying out the company’s incentive plan for its key personnel, as consideration in potential ac-
quisitions or in other structural arrangements. The repurchased shares may be retained by the company, invalidated or trans-
ferred further.
In 2023, Etteplan repurchased a total of 30,000 of the company’s own shares. The company held 100,921 of its own shares at
the end of December 2023 (December 31, 2022: 159,046), corresponding to 0.40 percent of all shares and voting rights.
FLAGGINGS
Etteplan Oyj received no flagging notices in 2023.
ETTEPLAN OYJ’S INCENTIVE PLAN FOR KEY PERSONNEL 2023-2025
The Board of Directors of Etteplan Oyj decided on April 20, 2023, to establish a new share incentive plan for the Group’s key
personnel. The aim of the share incentive plan is to combine the objectives of the shareholders and the key personnel in order
to increase the value of Etteplan, to commit the key personnel to the company, and to offer them a competitive reward plan
based on earning the company shares.
The plan includes one earning period which includes the calendar years 2023-2025. The plan is in line with Etteplan’s strategy
and supports reaching the company’s financial targets.
The earnings criteria are Etteplan Group’s revenue increase and earnings per share development. The potential reward will be
paid partly in Etteplan’s shares and partly in cash after the end of the earning period. The cash portion is intended to cover
taxes and tax-related costs arising from the reward to the key personnel.
Approximately 35 people belong to the plan, including the Management Group of Etteplan. The rewards to be paid on the ba-
sis of the plan will correspond to the value of a maximum total of 300,000 Etteplan Oyj shares (including also the portion to be
paid in cash). The shares to be paid out as potential rewards will be transferred from the shares held by the company or
shares acquired from the market, and therefore the incentive plan will have no diluting effect on the share value.
EVENTS AFTER THE REVIEW PERIOD
JANUARY 1, 2024: ETTEPLAN ACQ UIRES STRONGIT APS, A DANISH CON SULTANCY COMPANY – A DI-
RECT SHARE IS SUE TO T HE OWNERS OF THE ACQUIRED COMPANY AS PART OF THE PURCHAS E PRICE
On January 8, 2024, Etteplan issued a stock exchange release announcing the acquisition of STRONGIT ApS. As part of the
financing of the transaction, Etteplan Oyj’s Board of Directors, at its meeting held on January 8, 2024, made a conditional deci-
sion on a share issue based on the share issue authorization given to the Board of Directors by the Annual General Meeting on
April 5, 2023. The directed share issue is related to the acquisition of STRONGIT ApS. 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 on January 8, 2024, and at the same time the sellers subscribed for 150,000 new Etteplan
shares as a part payment for the purchase amount. The subscription price per share paid for the shares was EUR 14.048.
ON JANUARY 1 8, 2024, ETTEPLAN ISSUED A PROFIT WARNING: A CCOR DING TO TH E PRELI MINARY RE-
SULT , ETTEPLAN’S REVENUE FOR 2023 IS ABOUT EUR 359 MILLION AND THE OPERATING PROFIT
(EBIT) IS ABOUT EUR 25 .4 MILLION.
In its interim report published on October 31, 2023, Etteplan estimated its revenue for 2023 to be EUR 355-370 (2022: 350.2)
million and the operating profit (EBIT) for 2023 to be EUR 26-28.5 (2022: 28.6) million.
According to the profit warning issued on January 18, 2023, Etteplan’s revenue in 2023 is in accordance with the guidance and,
according to the preliminary results, is approximately EUR 359 million. The operating profit (EBIT) for 2023 falls short of the
guidance due to the weaker-than-expected business development in the last quarter of the year and, according to the prelimi-
nary result, is approximately EUR 25.4 million.
11
Etteplan’s worse-than-expected profit level was affected by the weakening of the demand situation, the high number of sick
leaves at the end of the year and the larger-than-expected number of holidays taken at Christmas time. In addition, the result
was weakened by corrections in costs bookings.
JANUARY 31, 2024: ETTEPLAN LAUNCHES RENEWED BRAND TO REFLECT ITS ASPIRATIONS AS A LEADING GLOBAL TECH-
NOLOGY SERVICE COMPANY
Etteplan launches renewed brand and starts the next chapter on its journey. During the 40 years Etteplan has changed from a
traditional engineering company to a modern technology service company. At the same time Etteplan has expanded its opera-
tions from Finland to global markets and operates now in eight countries with over 80 offices.
This renewal goes beyond visual identity, our new logo and updated colors. It’s about our commitment to revised values and a
culture of collaborative partnerships and technology leadership, innovation and creativity. At Etteplan, we bring people and
technology together to change things for the better.
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 custom-
ers’ 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 availability of
personnel, particularly in certain expert disciplines, continues to present a business risk.
The unstable geopolitical situation makes the future more difficult to predict and continues to create uncertainty in the mar-
kets, maintains inflation and has a negative impact on customers’ operations and supply chains.
Etteplan assesses business risks annually and actively monitors their development during the year. The focus of the assess-
ment 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 2024
The most important factor affecting Etteplan’s business is the global development of the machinery and metal industry. Con-
tinued Russian aggression against Ukraine and the further elevation of geopolitical tensions due to the conflict in the Middle
East have increased uncertainty globally. Uncertainty and the rise in interest rates caused by inflation have reduced our cus-
tomers’ willingness to invest and weakened the demand situation in certain customer industries. Nevertheless, investments
related to the defense industry, energy efficiency and accelerating the green transition are continuing to grow. There are fluc-
tuations in demand, and the year 2024 begins in an uncertain and slightly weaker demand situation. The markets expect inter-
est rates to fall in 2024, and we believe this will boost investments and improve the demand situation to a good level.
FINANCIAL GUIDANCE 2024
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range and issues the following estimate:
Revenue in 2024 is as estimated to be EUR 375-415 (2023: 360.0) million, and
operating profit (EBIT) in 2024 is estimated to be EUR 28-34 (2023: EUR 25.5 million).
THE BOARD’S PROPOSAL FOR DISTRIBUTION OF 2023 PROFITS
The parent company’s distributable shareholders’ equity according to the balance sheet on December 31, 2023, is EUR
78,343,980.19 The Board of Directors will propose to the Annual General Meeting, which will convene on April 9, 2024, that on
the dividend payout date a dividend of EUR 0.30 per share be paid on the company’s externally owned shares, for a total
amount of EUR 7,560,237.90 at most, and that the remaining profit be transferred to retained earnings.
ANNUAL GENERAL MEETING 2024
12
Etteplan Oyj’s Annual General Meeting will be held on Tuesday, April 9, 2024. The summons to the AGM is published as a sepa-
rate release.
CORPORATE GOVERNANCE STATEMENT
Etteplan publishes the Corporate Governance Statement for 2023 separately from the Board of Directors’ review. The state-
ment is available on the Company’s website www.etteplan.com.
STATEMENT OF NON-FINANCIAL INFORMATION
Etteplan publishes the Statement of non-financial information for 2023 separately from the Board of Directors’ review. The
statement is available on the Company’s website www.etteplan.com.
13
KEY FIGURES FOR FINANCIAL TRENDS
KEY FIGURES FOR SHARES
14
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 at the end of this release.
OPERATING PROFIT (EBITA) AND EBITA, %
Operating profit (EBITA) is presented, because it reflects the Group’s operational performance better that Operating profit
(EBIT). Operating profit (EBITA) does not include amortization of fair value adjustments at acquisitions. EBITA, % presents Oper-
ating profit (EBITA) as a percentage share of revenue. The table below shows a reconciliation between Operating profit (EBITA)
and Operating profit (EBIT).
ORGANIC/UN-ORGANIC GROWTH AND GROWTH IN COMPARABLE CURRENCIES
Organic (revenue) growth is presented in addition to total revenue growth, because it improves the 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 the last 12 months' acquisitions is presented as un-organic
growth. Revenue growth in comparable currencies is presented, because it improves the comparability of revenue growth be-
tween periods by presenting the revenue growth with comparable exchange rates. For the calculation of growth in compara-
ble currencies, revenue for the current period is calculated by using the comparable period’s exchange rates. The figure is
presented for Group revenue and organic growth.
THE SHARE OF REVENUE REPRESENTED BY MANAGED SERVICES
Etteplan measures the share of revenue represented by Managed Services (MSI Index). Managed Ser-vices are service solu-
tions, such as projects and continuous services, where the customer pays for results instead of resources. The share of reve-
nue represented by Managed Services is presented, because it describes Etteplan's strategy implementation and explains, in
part, the changes in profitability.
Etteplan Oyj
Board of Directors
EUR 1,000 2023 2022
Operating profit (EBIT) 25,540 28,622
Amortization on fair value adjustments at acquisitions 5,344 5,293
Operating profit (EBITA)
30,883 33,915
15
FORMULAS FOR THE KEY FIGURES
IFRS KEY FIGURES
NON-IFRS KEY FIGURES
Basic earnings per share =
(Profit for the review period attributable to equity holders of the parent company) x 100
Issue adjusted average number of shares during the review period
Diluted earnings per share =
(Profit for the review period attributable to equity holders of the parent company
adjusted with dilutive effect) x 100
Issue adjusted average number of shares during the review period adjusted with
dilutive effect
Operating profit (EBITA) =
Operating profit (EBIT) + amortization on fair value adjustments in acquisitions
Organic growth =
(Revenue current year - Revenue comparison year - Revenue from acquirees
current year) x 100
Revenue comparison year
Revenue growth from key accounts =
(Revenue from key accounts current year - Revenue from key accounts
comparison year) x 100
Revenue from key accounts comparison year
The share of revenue represented by
Managed Services =
Revenue from Managed Services x 100
Revenue
Return on equity (ROE), % = Profit for the financial year x 100
(Equity, total) average
Return on capital employed (ROCE), before
taxes, % =
(Profit before taxes + Financial expenses) x 100
(Total equity and liabilities - non-interest bearing liabilities) average
Equity ratio, % = Equity, total x 100
Total equity and liabilities - Advances received
Gross investments =
Total investments made to non-current assets including acquisitions and
capitalized development costs
Net gearing, % = (Interest-bearing liabilities - Cash and cash equivalents) x 100
Equity, total
Equity per share = Equity, total
Adjusted number of shares at the end of the year
Market capitalization =
Number of outstanding shares at the end of the year x last traded share price of
the year
Dividend per share = Dividend for the financial year
Adjusted number of shares during the financial year
Dividend as percentage of earnings = Dividend per share x 100
Earnings per share
Effective dividend yield, % = Dividend per share x 100
Adjusted last traded share price
Price/earnings ratio (P/E) = Adjusted last traded share price
Earnings per share
Share price trend
For each financial year, the adjusted low and high actual traded prices are given
as well as the average price for the financial year adjusted for share issues.
Average price = Total turnover of shares in euros
Number of shares traded during the financial year
Trend in share turnover, in volume and
percentage figures
The trend in turnover of shares is given as the number of shares traded during
the financial year and as the percentage of traded shares relative to issued
stock during the year.
16
BREAKDOWN OF SHAREHOLDINGS, DECEMBER 31, 2023
BREAKDOWN OF SHAREHOLDINGS BY SIZE CLASS
BREAKDOWN OF SHAREHOLDINGS BY OWNER GROUP
MAJOR SHAREHOLDERS
Number of shares, pcs
Number of
shareholders
Proportion of
shareholders, %
Number of shares
Proportion of shares and
votes, %
1-100 1,812 50.57 63,363 0.25
101-1,000 1,410 39.35 528,038 2.10
1,001-10,000 318 8.88 892,367 3.54
10,001-100,000 30 0.84 809,394 3.21
100,001-1,000,000 11 0.31 3,699,648 14.68
> 1,000,000 2 0.06 19,207,983 76.22
Total 3,583 100.00 25,200,793 100.00
Name of the sector
Number of
shareholders
Number of shares
Proportion of shares and
votes, %
National economy total (domestic sector)
Companies 106 17,168,652 68.13
Financial and insurance institutions 22 2,950,970 11.71
Public sector entities 5 1,549,617 6.15
Households 3,414 2,419,034 9.60
Non-profit institutions 14 24,208 0.10
Foreigners 22 35,980 0.14
Nominee-registered shares 1,052,332 4.18
Total 3,583 25,200,793 100.00
Name
Number of shares
Proportion of shares and
votes, %
Ingman Group Oy Ab 16,670,000 66.15
Oy Fincorp Ab 2,537,983 10.07
Keskinäinen työeläkevakuutusyhtiö Varma 985,593 3.91
Tuori Klaus Tapani 309,134 1.23
Tuori Aino Mirjami 308,275 1.22
Keskinäinen Eläkevakuutusyhtiö Ilmarinen 298,311 1.18
Keskinäinen Työeläkevakuutusyhtiö Elo 262,000 1.04
VAS Invest Oy 194,035 0.77
Sr Taaleritehdas Mikro Markka 154,048 0.61
OP-Suomi Pienyhtiöt 111,436 0.44
Näkki Juha Antti Ilmari 107,739 0.43
Etteplan Oyj 100,921 0.40
Ingman Robert 60,000 0.24
Kylänpää Osmo Olavi 53,200 0.21
Sr Säästöpankki Pienyhtiöt 49,241 0.20
Kurra Jorma 41,841 0.17
Mäkelä Esa Tapio 40,285 0.16
Fondita Equity Spice Sijoitusrahasto 36,002 0.14
Burmeister Dorrit Elisabeth 32,313 0.13
Hemholmen Oy Ab 31,200 0.12
Other shareholders 1,764,904 7.00
Nominee-registrated shares 1,052,332 4.18
Total 25,200,793 100.00
17
Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
EUR 1,000, financial period Jan 1-Dec 31
Note
2023
2022
Revenue
7
Other operating income
8
Materials and services
10
-43,320
-40,395
Employee benefits expenses
11
-233,736
-227,823
Other operating expenses
12
-40,259
-36,140
Depreciation and amortization
19, 20
-18,839
-20,018
Operating profit (EBIT)
7.1
%
8.2
%
Financial income
14
Financial expenses
15
-5,537
-7,280
Profit before taxes
Income taxes
17
-4,158
-4,235
Profit for the financial year
Other comprehensive income, that may be reclassified to profit or loss
Currency translation differences
-4,229
Other comprehensive income, that will not be reclassified to profit or loss
Change in fair value of equity investments at fair value through other compre-
hensive income
-30
-31
Remeasurement of defined benefit plan
11
-157
Other comprehensive income for the year, net of tax
17
-2,900
Total comprehensive income for the year
Profit for the financial year attributable to
Equity holders of the parent company
Total comprehensive income attributable to
Equity holders of the parent company
Earnings per share calculated from the profit attributable to equity holders of the parent
company
Basic earnings per share, EUR
18
Diluted earnings per share, EUR
18
The notes are an integral part of the Financial Statements.
18
Consolidated Statement of Financial Position
EUR 1,000, Dec 31
Note
2023
2022
ASSETS
Non-current assets
Goodwill
22
Other intangible assets
19
Tangible assets
20
Investments at fair value through other comprehensive income
21
Other non-current receivables
21
Deferred tax assets
30
Non-current assets, total
Current assets
Inventory
23
Work in progress
7
Trade and other receivables
24
Current tax assets
Cash and cash equivalents
Current assets, total
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Share capital
25
Share premium account
25
Unrestricted equity fund
25
Own shares
25
-1,719
-1,059
Cumulative translation adjustment
25
-6,915
-7,702
Other reserves
25
Retained earnings
25
Equity, total
Non-current liabilities
Deferred tax liabilities
30
Loans from financial institutions
27
Lease liabilities
27
Defined benefit pension liability
11
Other non-current liabilities
28
Non-current liabilities, total
Current liabilities
Loans from financial institutions
27
Lease liabilities
27
Advances received
7
Trade and other payables
29
Current income tax liabilities
Current liabilities, total
Liabilities, total
TOTAL EQUITY AND LIABILITIES
The notes are an integral part of the Financial Statements.
19
Consolidated Statement of Cash Flows
EUR 1,000, financial period Jan 1-Dec 31
Note
2023
2022
OPERATING CASH FLOW
Cash receipts from customers
Operating expenses paid
-322,517
-306,220
Operating cash flow before financial items and taxes
Interests and other payments for financial expenses
15
-4,540
-1,721
Interest received
14
Income taxes paid
17
-4,839
-5,277
Operating cash flow (A)
INVESTING CASH FLOW
Purchase of tangible and intangible assets
19, 20
-2,067
-1,711
Acquisition of subsidiaries, net of cash acquired
5
-5,496
-20,871
Purchase of investments
21
-2,033
Proceeds from sale of tangible and intangible assets
Loans granted
21
-963
Investing cash flow (B)
-6,888
-25,526
Cash flow after investments (A+B)
FINANCING CASH FLOW
Purchase of own shares
-486
Proceeds from current loans
27
Repayments of current loans*
27
-32,297
-32,534
Proceeds from non-current loans
27
Repayments of non-current loans
27
-35
-16
Payment of lease liabilities
20
-11,576
-12,657
Dividend paid
25
-9,015
-9,970
Financing cash flow (C)
-24,826
-14,034
Variation in cash (A+B+C) increase (+) / decrease (-)
-11,464
Assets at the beginning of the financial period
Exchange gains or losses on cash and cash equivalents
Assets at the end of the financial period
The notes are an integral part of the Financial Statements.
20
Consolidated Statement of Changes in Equity
EUR 1,000
Share
capital
Share
premium
account
Unrestricted
equity fund
Other
reserves
Own sha-
res
Cumulative
translation ad-
justment
Retained
earnings
Total
Equity Jan 1, 2022
-1,245
-3,473
Comprehensive income for the year
Profit for the financial year
Other comprehensive income for
the year
Change in fair value of equity in-
vestments at fair value through
other comprehensive income
-30
-1
-31
Cumulative translation adjustment
-4,229
-4,229
Remeasurement of defined benefit
plan
Other comprehensive income for
the year, net of tax
-30
-4,229
-2,900
Total comprehensive income for
the year
-30
-4 229
Transactions with owners
Dividends
-9,970
-9,970
Directed share issue
Share-based incentive plan
Transactions with owners, total
-9,970
-7,855
Equity Dec 31, 2022
-1,059
-7,702
EUR 1,000
Share ca-
pital
Share
premium
account
Unrestricted
equity fund
Other re-
serves
Own
shares
Cumulative
translation
adjustment
Retained
earnings
Total
Equity Jan 1, 2023
-1,059
-7,702
Comprehensive income for the
year
Profit for the financial year
Other comprehensive income for
the year
Change in fair value of equity in-
vestments at fair value through
other comprehensive income
-30
-30
Cumulative translation ad-
justment
Remeasurement of defined bene-
fit plan
-157
-157
Other comprehensive income for
the year, net of tax
-30
-157
Total comprehensive income for
the year
-30
Transactions with owners
Dividends
-9,015
-9,015
Purchase of own shares
-486
-486
Share-based incentive plan
-173
Transactions with owners, total
-659
-8,806
-9,466
Equity Dec 31, 2023
-1,719
-6,915
The notes are an integral part of the Financial Statements.
21
Notes to the Consolidated Financial Statements
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
NOTES TO CONSOLIDATED BALANCE SHEET
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Parent Company’s Financial Statements
PARENT COMPANY’S INCOME STATEMENT
EUR, financial period Jan 1 - Dec 31 (FAS) Note 2023 2022
Revenue 1 18,863,945.10 17,992,393.03
Other operating income 2 31,237.59 144,871.78
Staff costs 3 -5,800,734.65 -6,163,925.54
Depreciation and amortization 10, 11 -379,920.41 -451,578.11
Other operating expenses 5 -10,034,910.33 -13,557,723.87
Operating profit/loss 2,679,617.30 -2,035,962.71
Financial income and expenses 6, 7 12,580,472.23 -1,354,725.10
Profit/loss before appropriations and taxes 15,260,089.53 -3,390,687.81
Appropriations 8 15,129,171.74 14,922,315.44
Income taxes 9 -2,660,574.27 -2,158,396.50
Profit for the financial year 27,728,687.00 9,373,231.13
61
PARENT COMPANY’S BALANCE SHEET
EUR, Dec 31 (FAS) Note 2023 2022
ASSETS
Non-current assets
Intangible assets 10 595,985.09 913,174.75
Tangible assets 11 159,891.69 180,319.30
Shares in group companies 12 158,690,119.73 156,916,843.53
Other investments 12 2,052,397.84 2,052,397.84
Non-current receivables 13 14,815,837.87 7,667,757.27
Non-current assets, total 176,314,232.22 167,730,492.69
Current assets
Current receivables 14 21,610,629.06 21,286,525.70
Cash and cash equivalents 15 14,893,172.87 11,241,985.24
Current assets, total 36,503,801.93 32,528,510.94
TOTAL ASSETS 212,818,034.15 200,259,003.63
EQUITY AND LIABILITIES
Equity
Share capital 16 5,000,000.00 5,000,000.00
Share premium account 16 6,701,187.41 6,701,187.41
Unrestricted equity fund 16 24,079,413.43 24,079,413.43
Own Shares 16 -1,718,906.02 -2,064,007.96
Retained earnings 16 28,254,785.78 27,688,036.68
Profit for the financial year 16 27,728,687.00 9,373,231.13
Equity, total 90,045,167.60 70,777,860.69
APPROPRIATIONS 17 230,097.14 359,268.88
Liabilities
Non-current liabilities 18 39,850,000.00 47,500,000.00
Current liabilities 19 82,692,769.41 81,621,874.06
Liabilities, total 122,542,769.41 129,121,874.06
TOTAL EQUITY AND LIABILITIES 212,818,034.15 200,259,003.63
62
PARENT COMPANY’S CASH FLOW STATEMENTS
*In the fiscal year of 2022, the item also includes a realized currency hedging loss of EUR 4.9 million.
EUR, financial period Jan 1 - Dec 31 (FAS) 2023 2022
OPERATING CASH FLOW
Cash receipts from Group companies 18,350,710.68 18,155,530.23
Operating expenses paid -17,960,437.50 -16,470,022.95
Operating cash flow before financial items and taxes 390,273.18 1,685,507.28
Interest and payment paid for financial expenses -3,519,476.10 -987,642.08
Dividends and interest received 16,296,386.74 4,253,993.05
Income taxes paid -2,156,377.20 -2,790,188.81
Operating cash flow (A) 11,010,806.62 2,161,669.44
INVESTING CASH FLOW
Purchase of tangible and intangible assets -75,121.14 -167,759.07
Acquisition of subsidiaries -1,773,276.20 -22,951,411.44
Sale of subsidiaries 0.00 4,117,079.00
Purchase of investments 0.00 -2,032,813.73
Loans granted to Group companies -7,800,000.00 -2,250,000.00
Loans granted to others 0.00 -962,757.27
Repayment of loans granted to Group companies 635,000.00 0.00
Change of internal bank account receivables 0.00 2,777,444.46
Investing cash flow (B) -9,013,397.34 -21,470,217.99
FINANCING CASH FLOW
Purchase of own shares -486,226.17 0.00
Issue of new current loans 0.00 12,587,886.33
Repayments of current loans* -31,131,563.44 -31,833,642.74
Change of internal bank account liabilities -1,124,657.45 -5,361,566.04
Issue of new non-current loans 28,500,000.00 28,000,000.00
Dividend paid -9,015,028.92 -9,969,704.80
Group contribution 15,000,000.00 13,000,000.00
Financing cash flow (C) 1,742,524.02 6,422,972.75
Variation in cash (A+B+C) increase (+) / decrease (-) 3,739,933.30 -12,885,575.80
Assets at the beginning of the period 11,241,985.24 23,717,649.78
Exchange gains or losses on cash and cash equivalents -88,745.67 409,846.80
Assets at the end of the period 14,893,172.87 11,241,920.78
63
Notes to the Financial Statements of the Parent Company
PARENT COMPANY’S ACCOUNTING POLICIES
The financial statements of the parent company, Etteplan Oyj, are prepared in accordance with Finnish accounting and com-
pany 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 con-
trolled 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 prod-
uct 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.
MEA SUREMENT OF NON -CUR RENT ASSETS
Non-current assets are capitalized in the balance sheet at historical cost less depreciation according to plan and possible im-
pairment 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 operat-
ing 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.
PEN SION 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 AGRE EMENTS
Contractual lease payments are expensed over the lease period.
64
NOTES TO THE INCOME STATEMENT, PARENT COMPANY
1 REVENUE
Revenue consists of software and management fees from Etteplan Group companies.
2 OTHER OPERATING INCOME
3 NUMBER OF PERSONNEL AND STAFF COSTS
Employee benefits of the Board of Directors and top management are disclosed in point 32 "Related party transactions" of the
notes to the consolidated financial statements.
4 AUDIT FEES
EUR 2023 2022
Finland 18,863,945.10 17,992,393.03
EUR 2023 2022
Other operating income 31,237.59 144,871.78
Total 31,237.59 144,871.78
2023 2022
Personnel
Personnel at year-end 71 69
Personnel, average 69 69
Personnel by category
Administration personnel 71 69
Total 71 69
EUR 2023 2022
Staff costs
Wages and salaries 4,791,127.73 5,231,046.50
Pension costs - defined contribution plans 858,100.18 789,778.56
Other indirect employee costs 151,506.74 143,100.48
Total 5,800,734.65 6,163,925.54
EUR 2023 2022
Auditing, KPMG Oy Ab 57,077.19 49,865.00
Auditor's statements based on laws and regulations, KPMG Oy Ab 5,177.72 7,220.00
Other services (tax services), KPMG Oy Ab 43,110.97 54,531.00
Other services (other services), KPMG Oy Ab 8,606.25 0.00
Total 113,972.13 111,616.00
65
5 OTHER OPERATING EXPENSES
During the fiscal year of 2022, the company has sold the shares of Etteplan Tech Poland s.a. to the subsidiary Etteplan Finland
Oy. The sale of the shares resulted in a sales loss of EUR 3,184 thousand.
6 FINANCIAL INCOME
7 FINANCIAL EXPENSES
The realized currency hedging loss related to the preparation of the Semcon deal, EUR 4.9 million, had a significant negative
impact on financing items in the fiscal year of 2022.
8 APPROPRIATIONS
9 INCOME TAXES
EUR 2023 2022
Leasing and rents 1,618,145.34 1,897,367.41
IT costs 5,366,373.02 4,557,941.41
Services from Group companies 774,501.08 941,097.84
Loss on disposal of subsidiary shares 0.00 3,183,643.80
Other operating expenses 2,275,890.89 2,977,673.41
Total 10,034,910.33 13,557,723.87
EUR 2023 2022
Intra-Group dividend income 15,773,375.58 4,205,452.42
Dividend and interest income from others 474,262.26 47,070.63
Interest and other financial income, Intra-Group 210,545.29 48,428.95
Foreign exchange changes -52,227.00 428,618.28
Total 16,405,956.13 4,729,570.28
EUR 2023 2022
Intra-Group interest expense 932,433.24 140,342.02
Interest expense on borrowings from others 2,826,417.06 1,026,939.49
Foreign exchange loss 66,633.60 4,917,013.87
Total 3,825,483.90 6,084,295.38
EUR 2023 2022
Group contributions received 15,000,000.00 15,000,000.00
Increase (-) / decrease (+) in depreciation in excess of plan 129,171.74 -77,684.56
Total 15,129,171.74 14,922,315.44
EUR 2023 2022
Tax on income from operations 2,663,187.33 2,158,982.85
Tax corrections for previous accounting periods -2,613.06 -586.35
Total 2,660,574.27 2,158,396.50
66
NOTES TO THE BALANCE SHEET, PARENT COMPANY
10 INTANGIBLE ASSETS
2023
EUR
Intangible rights Other intangible assets
Advance
payments
Goodwill Total
Acquisition cost Jan 1 5,821,961.67 153,010.00 0.00 2,499,728.53 8,474,700.20
Additions 12,912.62 0.00 0.00 0.00 12,912.62
Reclassifications between items 0.00 0.00 0.00 0.00 0.00
Acquisition cost Dec 31 5,834,874.29 153,010.00 0.00 2,499,728.53 8,487,612.82
Cumulative amortization Jan 1 -5,457,821.64 -153,010.00 0.00 -1,950,693.81 -7,561,525.45
Cumulative amortization on disposals 0.00 0.00 0.00 0.00 0.00
Amortization for the financial year -118,021.23 0.00 0.00 -212,081.05 -330,102.28
Cumulative amortization Dec 31 -5,575,842.87 -153,010.00 0.00 -2,162,774.86 -7,891,627.73
Book value Dec 31 259,031.42 0.00 0.00 336,953.67 595,985.09
2022
EUR
Intangible rights Other intangible assets
Advance
payments
Goodwill Total
Acquisition cost Jan 1 5,630,786.76 153,010.00 76,550.00 2,499,728.53 8,360,075.29
Additions 114,624.91 0.00 0.00 0.00 114,624.91
Reclassifications between items 76,550.00 0.00 -76,550.00 0.00 0.00
Acquisition cost Dec 31 5,821,961.67 153,010.00 0.00 2,499,728.53 8,474,700.20
Cumulative amortization Jan 1 -5,259,653.13 -153,010.00 0.00 -1,738,612.75 -7,151,275.88
Amortization for the financial year -198,168.51 0.00 0.00 -212,081.06 -410,249.57
Cumulative amortization Dec 31 -5,457,821.64 -153,010.00 0.00 -1,950,693.81 -7,561,525.45
Book value Dec 31 364,140.03 0.00 0.00 549,034.72 913,174.75
67
11 TANGIBLE ASSETS
12 INVESTMENTS
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.
2023
EUR
Machinery and
equipment
Other tangible
assets
Total
Acquisition cost Jan 1 1,402,643.25 64,986.64 1,467,629.89
Additions 28,272.98 1,117.54 29,390.52
Acquisition cost Dec 31 1,430,916.23 66,104.18 1,497,020.41
Cumulative depreciation Jan 1 -1,229,024.95 -58,285.64 -1,287,310.59
Depreciation for the financial year -47,834.45 -1,983.68 -49,818.13
Cumulative depreciation Dec 31 -1,276,859.40 -60,269.32 -1,337,128.72
Book value Dec 31 154,056.83 5,834.86 159,891.69
2022
EUR
Machinery and
equipment
Other tangible
assets
Total
Acquisition cost Jan 1 1,350,058.59 64,437.14 1,414,495.73
Additions 52,584.66 549.50 53,134.16
Acquisition cost Dec 31 1,402,643.25 64,986.64 1,467,629.89
Cumulative depreciation Jan 1 -1,189,597.08 -56,384.97 -1,245,982.05
Depreciation for the financial year -39,427.87 -1,900.67 -41,328.54
Cumulative depreciation Dec 31 -1,229,024.95 -58,285.64 -1,287,310.59
Book value Dec 31 173,618.30 6,701.00 180,319.30
2023
EUR
Shares in Group
companies
Other investments Total
Acquisition cost Jan 1 156,916,843.53 2,052,397.84 158,969,241.37
Increases 1,773,276.20 0.00 1,773,276.20
Acquisition cost Dec 31 158,690,119.73 2,052,397.84 160,742,517.57
Book value Dec 31 158,690,119.73 2,052,397.84 160,742,517.57
2022
EUR
Shares in Group
companies
Other investments Total
Acquisition cost Jan 1 140,104,233.19 19,584.11 140,123,817.30
Increases 24,880,515.14 2,032,813.73 26,913,328.87
Decreases -8,067,904.80 0.00 -8,067,904.80
Acquisition cost Dec 31 156,916,843.53 2,052,397.84 158,969,241.37
Book value Dec 31 156,916,843.53 2,052,397.84 158,969,241.37
68
13 NON-CURRENT RECEIVABLES
14 CURRENT RECEIVABLES
15 CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet correspond with the financial assets in the cash flow statement.
EUR 2023 2022
Non-current receivables
Loan receivables from Group companies 13,870,000.00 6,705,000.00
Loan receivables from Others 945,837.87 962,757.27
Non-current receivables, total 14,815,837.87 7,667,757.27
EUR 2023 2022
Current receivables from Group companies
Trade receivables 2,691,972.66 2,192,259.74
Group contribution receivables 15,000,000.00 15,000,000.00
Other receivables 1,648,724.78 1,493,228.78
Current receivables from others
Current prepayments and accrued income 2,017,219.81 1,845,011.90
Tax receivables 251,811.81 756,008.88
Other short-term receivables 900.00 16.40
Current receivables, total 21,610,629.06 21,286,525.70
Main items included in prepayments and accrued income
Prepayments of IT costs 1,803,945.61 1,699,619.55
Other prepayments and accrued income on expenses 213,274.20 145,392.35
Total 2,017,219.81 1,845,011.90
EUR 2023 2022
Bank accounts and cash 14,893,172.87 11,241,985.24
Total 14,893,172.87 11,241,985.24
69
16 EQUITY
Additional information regarding the shares is presented in point 25 "Shares and share capital" of the notes to the consolidated
financial statements.
17 ACCUMULATED APPROPRIATIONS
EUR 2023 2022
Restricted equity
Share capital Jan 1 5,000,000.00 5,000,000.00
Share capital Dec 31 5,000,000.00 5,000,000.00
Share premium account Jan 1 6,701,187.41 6,701,187.41
Share premium account Dec 31 6,701,187.41 6,701,187.41
Restricted equity, total 11,701,187.41 11,701,187.41
Unrestricted equity
Unrestricted equity fund Jan 1 24,079,413.43 22,150,309.73
Share issue 0.00 1,929,103.70
Unrestricted equity fund Dec 31 24,079,413.43 24,079,413.43
Treasury shares Jan 1 -2,064,007.96 -2,064,007.96
Additions -486,226.17 0.00
Share-based incentive plan 831,328.11 0.00
Treasury shares Dec 31 -1,718,906.02 -2,064,007.96
Retained earnings Jan 1 37,061,267.81 37,657,741.48
Dividends paid -9,015,028.92 -9,969,704.80
Share-based incentive plan 208,546.89 0.00
Retained earnings Dec 31 28,254,785.78 27,688,036.68
Profit for the financial year 27,728,687.00 9,373,231.13
Unrestricted equity total 78,343,980.19 59,076,673.28
Shareholders' equity, total 90,045,167.60 70,777,860.69
Distributable funds Dec 31
Retained earnings 28,254,785.78 27,688,036.68
Treasury shares -1,718,906.02 -2,064,007.96
Unrestricted equity fund 24,079,413.43 24,079,413.43
Profit for the financial year 27,728,687.00 9,373,231.13
Distributable funds Dec 31 78,343,980.19 59,076,673.28
Number of shares Jan 1
25,200,793 25,200,793
Number of shares Dec 31
25,200,793 25,200,793
EUR 2023 2022
Depreciation in excess of plan
230,097.14 359,268.88
Total 230,097.14 359,268.88
70
18 NON-CURRENT LIABILITIES
19 CURRENT LIABILITIES
20 PLEDGED, MORTGAGES AND GUARANTEES
LOAN GUARANTEES ON BEHALF OF SUBSIDIARIES
Etteplan Oyj has given a Parent Company guarantee totalling EUR 152 thousand for loans, of which EUR 0 is in use, for Etteplan
Poland sp.z.o.o.
EUR 2023 2022
Loans from financial institutions 39,850,000.00 47,500,000.00
Total 39,850,000.00 47,500,000.00
EUR 2023 2022
Current liabilities to group companies
Trade payables 150,486.60 112,095.42
Other payables 320.00 0.00
Internal bank account liabilities 54,215,022.60 55,339,680.05
Current liabilities to others
Trade payables 913,752.82 1,693,188.72
Other liabilities 522,012.27 375,163.44
Accrued expenses 2,240,202.68 4,436,392.55
Income tax liability 0.00 0.00
Accrued liability on acquisitions 0.00 32,818.00
Loans from financial institutions 24,650,972.44 19,632,535.88
Current liabilities total 82,692,769.41 81,621,874.06
Main items included in accrued expenses
Interest liabilities 492,367.33 239,665.22
Accrued employee expenses 1,156,933.35 3,628,902.15
Other accrued expenses 590,902.00 567,825.18
Total 2,240,202.68 4,436,392.55
EUR 2023 2022
Guarantees given
Other contingencies 319,557.04 319,557.04
Guarantees for Group companies 193,635.82 186,074.65
Finance Lease liabilities
For payment in next financial year 2,513,389.19 2,500,609.19
For payment later 2,315,734.58 2,284,554.58
Operating Lease liabilities
For payment in next financial year 442,520.00 596,800.00
For payment later 1,103,690.00 173,165.00
Credit limits
Total credit limit available 8,253,064.17 6,615,668.18
Pledges, mortgages and guarantees total 15,141,590.80 12,676,428.64
71
21 EVENTS AFTER THE BALANCE SHEET DATE
Etteplan, strengthened its market position in Denmark by acquiring STRONGIT on January 8, 2024, which focuses on product
development solutions. The successful acquisition marks a continuation in Etteplan’s strategic growth journey as it complements
our expertise and further expands our international operations. STRONGIT employs a team of 13 highly qualified engineering
professionals and a vast network of about 70 freelancers working across Copenhagen, Århus and Gråsten. In 2023, STRONGIT’s
revenue was approximately 13 million euros.
The initial accounting for this business combination is incomplete and therefore the other disclosures required by IFRS 3
standard cannot yet be made.
72
SIGNATURE OF FINANCIAL STATEMENTS
On December 31, 2023, the parent company’s distributable shareholders’ equity amounted to EUR 78.3 million, of which the
net profit for the financial year was EUR 27.7 million.
The Board of Directors proposes that from the distributable funds at the disposal of the Annual General Meeting, a dividend of
EUR 0.30 per share be paid on the Company’s externally owned shares, for a maximum amount of EUR 7.6 million. Dividend
will not be paid out to shares that are company-held on the record date of dividend payout, April 11, 2024.
No substantial changes have occurred in the financial position of the Company since the end of the financial year. The Com-
pany’s liquidity is good and the Board of Directors judges that the proposed distribution of dividend will not endanger the
Company’s solvency.
It is proposed that the dividend be paid on April 18, 2024.
Espoo, February 8, 2024
Robert Ingman Matti Huttunen Päivi Lindqvist
Chairman of the Board Member of the Board Member of the Board
Leena Saarinen Mikko Tepponen Sonja Sarasvuo
Member of the Board Member of the Board Member of the Board
Tomi Ristimäki
Member of the Board
Juha Näkki
CEO
AUDITOR’S NOTE
A report on the audit performed has been issued today.
Helsinki, February 28, 2024
KPMG Oy Ab
Kim Järvi
Authorised Public Accountant, KHT
73
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
AUDITOR’S REPORT
To the Annual General Meeting of Etteplan Oyj
Report on the Audit of the Financial Statements
OPINION
We have audited the financial statements of Etteplan Oyj (business identity code 0545456-2) for the year ended December 31,
2023. 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 material accounting policy information, 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 IFRS Accounting Standards 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 magni-
tude of misstatements that, individually or in aggregate, could reasonably be expected to have influence on the economic deci-
sions 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.
74
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 109.7 million, has in-
creased by EUR 4.4 million during the financial
period as a result of acquisitions, and is a signifi-
cant individual item in the consolidated balance
sheet.
— Goodwill is tested for impairment when indica-
tors of impairment exist, or at least annually.
Goodwill impairment testing is conducted by
comparing the carrying value with the recovera-
ble amount using a discounted cash flow model.
Estimating future cash flows underlying the im-
pairment 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 as-
sumptions that form the basis on which the cash
flow projections for future years are prepared.
— We assessed the appropriateness of the discount
rate used and the technical integrity of calcula-
tions as well as for comparison of the assump-
tions used to the market and industry-specific
data.
— In addition, we assessed the adequacy of the sen-
sitivity analyses and the appropriate presentation
of notes related to impairment tests in the con-
solidated financial statements.
75
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 360.0 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 manage-
ment estimates and large volumes of transaction
data.
— For projects, where either a fixed price or a tar-
get price has been determined, revenue is recog-
nized over time based on the percentage of com-
pletion 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 recogni-
tion and accounting policies by reference to the
principles of revenue recognition determined un-
der IFRS.
— We tested the effectiveness of key internal con-
trols in place over the completeness and accu-
racy of revenue. We also assessed the operative
effectiveness of relevant IT systems for financial
reporting purposes.
— We compared total revenue estimates to cus-
tomer contracts for projects where revenue is
recognized over time based on the project’s per-
centage 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 ap-
propriateness of the process for updating esti-
mated project costs and percentages of comple-
tion.
— In addition, we performed substantive audit pro-
cedures to evaluate the completeness and accu-
racy of revenue recorded and assessed the ef-
fect of other events which require management
judgment.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE MANAGING DIREC-
TOR 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 IFRS Accounting Standards 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 misstate-
ment, 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 ac-
counting 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.
76
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, indi-
vidually 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 condi-
tions 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 disclo-
sures 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.
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 signifi-
cance 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 conse-
quences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
77
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 7 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 state-
ments or 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, 28 February 2024
KPMG OY AB
KIM JÄRVI
Authorized Public Accountant, KHT
78
INDEPENDENT AUDITOR’S REASONABLE ASSURANCE REPORT ON ETTEPLAN
OYJ’S ESEF FINANCIAL STATEMENTS
To the Board of Directors of Etteplan Oyj
We have undertaken a reasonable assurance engagement in respect of whether the consolidated financial statements for the
year ended 31 December, 2023 included in the digital financial statements 7437006I5533R06JU690-2023-12-31-en.zip of
Etteplan Oyj (Business ID 0545456-2) have been marked up with iXBRL markups in accordance with the requirements of Article
4 of EU Delegated Regulation 2018/815 (ESEF RTS).
The Responsibility of the Board of Directors and Managing Director
The Board of Directors and Managing Director are responsible for preparing the report of the Board of 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 primary statements and the notes to the consolidated financial statements, and the company identification
data included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of the ESEF RTS; and
— ensuring consistency between ESEF financial statements and audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they deem necessary to
prepare the ESEF financial statements in accordance with the requirements of the ESEF RTS.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements applicable in Finland, which apply to the en-
gagement we have performed, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Management ISQM 1, which requires the firm to design, implement and
operate a system of quality management including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulations requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsibility is to express an opinion on whether the marking up of the consoli-
dated financial statements included in the ESEF financial statements comply in all material respects with the Article 4 of the
ESEF RTS. We conducted our reasonable assurance engagement in accordance with International Standard on Assurance
Engagements 3000.
The engagement involves procedures to obtain evidence whether;
— the primary statements of the consolidated financial statements included in the ESEF financial statements are, in all mate-
rial respects, marked up with iXBRL tags in accordance with Article 4 of the ESEF RTS, and;
— whether the notes to the consolidated financial statements and the company identification data included in the ESEF finan-
cial statements data, have been marked up, in all material respects, with iXBRL tags in accordance with Article 4 of the
ESEF RTS; and
— whether the ESEF financial statements and the audited financial statements are consistent with each other.
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 primary statements of the consolidated financial statements, the notes to the consolidated financial state-
ments and the company identification data included in the ESEF financial statements of Etteplan Oyj identified as
7437006I5533R06JU690-2023-12-31-en.zip for the year ended 31 December, 2023 are, in all material respects, marked up in
compliance with the ESEF Regulatory Technical Standard.
79
Our audit opinion on the audit of the consolidated financial statements of Etteplan Oyj for the year ended 31 December, 2023
is set out in our Auditor’s Report dated 28 February, 2024. In this report, we do not express any audit opinion or other assur-
ance conclusion on the consolidated financial statements.
Helsinki, 15 March 2024
KPMG OY AB
Kim Järvi
Authorised Public Accountant, KHT
80
LIST OF ACCOUNTING BOOKS AND TYPES OF VOUCHERS
ACCOUNTING BOOKS
Journal electronically
General Ledger electronically
Invoice journal, purchase ledger electronically
Payment journal, purchase ledger electronically
Invoice journal, accounts receivable ledger electronically
Payment journal, accounts receivable ledger electronically
Financial Statements and Board of Directors’ review electronically
VOUCHERS
Voucher type Storage
Asset electronically
Customer Payment electronically
Vendor Invoice electronically
Expense electronically
General electronically
Intercompany Vendor Invoice electronically
Invoice electronically
Manual electronically
Mileage electronically
Project Journal electronically
Project Reallocation electronically
Project Revenue Recognition electronically
Tax Settlement electronically
Time electronically
Vendor Payment electronically
Notes Vouchers electronically