ETTEPLAN OYJ, Stock exchange release, December 18, 2024 at 1.30 p.m.

Etteplan is renewing its strategy and updating its financial targets

Etteplan Oyj´s Board of Directors has today approved the company's renewed strategy and updated financial targets for the years 2025-2027. Both will come into effect on January 1, 2025.

Digitization, the growing importance of artificial intelligence (AI) and data, sustainability and the growing need for experts are key trends that affect the operations of both the technology service company Etteplan and its customers. The main goal of the strategy update published today is to generate even more value for our customers and accelerate the transformation and development of customers´ and Etteplan's business.

"Our previous strategy has proven its effectiveness and our targets have steered us in the right direction. We have further developed our previous strategy and, in connection with the update, kept elements of the strategy that have proven to be good for us. The market around us is changing, and the importance of AI in particular is growing strongly, so we have made the utilization of AI a very central part of our renewing strategy," says Juha Näkki, President and CEO of Etteplan Oyj.

The strategy period 2025-2027 is called "Transformation with AI" and its three cornerstones are Trusted Partner, AI and Technology-Empowered Service Solutions and Success with People.

Trusted Partner cornerstone´s goal is to further increase the value gained by the customer as technology and AI develop. An even deeper partnership with our customers creates the conditions for us to utilize new technologies and AI in our customer relations to boost their sustainable growth and productivity.

A local presence close to our customers helps us to deeply understand what our customers really need and we can offer excellent customer experience. By understanding our customers´ business, utilizing AI and technologies, and our extensive know-how, we can create even more value-generating service solutions and help our customers develop their own business.

AI ​​and Technology-Empowered Service Solutions cornerstone´s goal is to develop service solutions that utilize the new added value generated by AI and new technologies, especially for industrial product companies and asset companies. AI and technologies, efficient processes, versatile know-how and world-class engineering methods are integrated into the service solutions.

Based on a deep understanding of our customers' needs, we offer scalable solutions that bring people and technology together and that create tangible business value for our customers. We develop services related to data management and data maintenance that enable the efficient use of AI.

The name of the cornerstone "Success with People" was kept in line with the previous strategy and thus we want to emphasize continuity and the importance of skilled personnel to our business. The goal of the cornerstone is to maintain, develop and attract top talents, with whom we will succeed in the implementation of the strategy together with our customers and partners. Our success is based on committed employees who have strong industry expertise and a passion for learning. We want to be an attractive employer for experts interested in AI and technologies.

Sources of growth

Etteplan is a growth company. Growth is generated both organically and through acquisitions. Sources of organic growth are new service solutions that utilize AI and technologies, which produce new added value for our customers. Current service solutions are also enhanced with the help of AI.

We develop new data-related service solutions that enable the efficient use of AI for industrial product companies and asset companies and support their data management and maintenance.

The third source of organic growth is our global delivery model and the utilization of nearshoring and offshoring to ensure competitiveness in the growing global competition.

Inorganic growth is created through acquisitions. Our goal is to offer services from all three of our service areas in all of our operating countries. In our current operating countries, we aim to strengthen our expertise, expand our service offering and improve our market position in selected markets and/or customer segments through acquisitions.

"Our renewed strategy guides the utilization of the opportunities brought by AI and technologies and the development of new services, where we see significant growth potential. In particular, the importance of data as a driver of business is constantly growing, and we are introducing new service solutions for the generation and management of new data, as well as for the maintenance and use of existing data. The importance of the change is also reflected by changing the name of our Technical Communication Solutions service area to Technical Communication and Data Solutions," says Juha Näkki.

In connection with the strategy renewal, Etteplan Oyj's Board of Directors has decided to update the company's financial and strategic targets.

Etteplan's financial and strategic targets from 1 January 2025

• Growth: turnover over EUR 500 million in 2027
• Managed services: 75 percent of revenue from managed services (Managed Services Index, MSI) by the end of 2027
• Utilization of AI: AI driven solutions share of revenue 35 percent by the end of 2027
• Profitability: Operating profit (EBITA) over 10 percent

In Espoo, December 18, 2024

Etteplan Oyj

Board of Directors

Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302


DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com

Etteplan in brief

Etteplan is a growing technology service company with the purpose of bringing people and technologies together to change things for the better. Together with our customers, we are building a world where every system, process, and product can be made smarter, more efficient, and more sustainable. Our customers include world's leading companies in the manufacturing industry.

In 2023, we had a turnover of EUR 360.0 million and around 4,000 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com