CEO's review

As expected, the year began in an expectant mood. Uncertainty caused by geopolitical tensions, high interest rates and our customers' declining orderbooks slowed our customers' decision-making on new investments, and the demand situation was difficult. Demand related to the defense industry, the energy industry and electrification remained at a high level, but the demand situation in other areas was weak.

Under the prevailing conditions, our operational efficiency was at a moderate level thanks to the implemented adaptation measures. We achieved a moderate result and our cash flow was strong. Revenue increased slightly, supported by acquisitions. During the review period, we acquired Strongit, which strengthens our market position in Denmark. Nevertheless, our organic revenue decreased, partly due to Easter and the related holidays falling in the review period.

We continued to develop the company and launched Etteplan's renewed brand and values during the review period. The company has developed and changed significantly over the past years. With the renewal, we aim to update our brand to reflect the company's current position as a leading global technology service company in its field and create opportunities for the company to develop further with the support of the renewed brand. During the review period, we also continued to invest in the development of our service offering, in which artificial intelligence plays a significant role. We implemented the first service solutions utilizing AI for our customers in the Technical Communication Solutions service area during the review period. The results are very promising, and we expect AI to create significant opportunities, both in terms of increasing value for customers and improving our internal efficiency.

The mood in the market remained expectant at the start of the second quarter, but the first signs of improved investment activity can generally be seen in the European markets. There are no corresponding signs in Finland as of yet. Nevertheless, the European Central Bank's comments regarding interest rate cuts have improved the mood in the market, and we expect that the potential interest rate cuts would have a significant stimulating impact on industrial investment. Investments typically start with product development, and we expect this to lead to a clear improvement in the demand situation during the latter part of the year.      

Juha Näkki
President and CEO

May 8, 2024