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STOCK EXCHANGE RELEASE 2 Feb 2010

Pöyry PLC's notice concerning annual accounts for 2009

PÖYRY PLC          Financial Statement Release 2 February 2010 at 8:30 a.m.

 

DIFFICULT MARKET ENVIRONMENT REFLECTED IN THE RESULT; 2010 OUTLOOK MORE POSITIVE

 

KEY FIGURES

 

Pöyry Group

Q4/2009

Q4/2008

2009

2008

Change, % 2009/2008

 

 

 

 

 

 

Order stock at end of period, EUR million

485.7

539.1

485.7

539.1

-9.9

Net sales total, EUR million

161.5

213.6

673.5

821.7

-18.0

Operating profit excluding

restructuring costs, EUR million

1.7

26.7

22.5

100.6

-77.6

Operating margin excluding

restructuring costs, %

1.1

12.5

3.3

12.2

 

Operating profit, EUR million

0.7

26.7

11.6

100.6

-88.5

Operating margin, %

0.4

12.5

1.7

12.2

 

Profit before taxes, EUR million

1.2

26.9

12.4

103.2

-88.0

Earnings per share, basic, EUR

0.02

0.34

0.11

1.21

-90.9

Earnings per share, diluted, EUR

0.02

0.34

0.11

1.19

-90.8

Gearing, %

 

 

-10.5

-38.5

 

Return on investment %,

 

 

5.3

45.4

 

Dividend, EUR (*BoD proposal)

 

 

0.10*

0.65

 

Average number of personnel during

period, calculated as full time

equivalents (FTE)

-

-

7052

7702

-8.4

 

Figures in brackets, unless otherwise stated, refer to the same period the previous year.

 

FOURTH QUARTER HIGHLIGHTS

- The market environment continued to be difficult but initial signs of gradually increasing study activity in various customer sectors began to appear.

- Sales at EUR 161.5 million were clearly below the previous year (213.6) but improved from EUR 150.2 million in the third quarter of 2009.

- Profitability remained at a very low level. Operating profit excluding restructuring costs was EUR 1.7 million (26.7) corresponding to 1.1 percent (12.5) of sales.

- Restructuring costs in the fourth quarter totalled EUR 1.0 million.

- Cash flow after capital expenditure was healthy at EUR 24.7 million.

 

FULL YEAR 2009 HIGHLIGHTS

- The year was marked by a very challenging market environment.

- The Group's order stock reduced, but remained on a reasonable level overall.

- The clients' low investment activity impacted sales that fell by 18.0 percent to EUR 673.5 million (821.7).

- Profitability was burdened by the lack of large projects and low capacity utilisation. Additionally, bad debt provisions totalling EUR 6.5 million were booked in 2009. Operating profit excluding restructuring costs fell to EUR 22.5 million (100.6) and operating margin to 3.3 percent (12.2).

- Profit before taxes was EUR 12.4 million

- The cost savings programme proceeded according to plan. Restructuring costs for 2009 totalled EUR 10.9 million.

- Cash flow after capital expenditure improved considerably towards the end of the year but was still negative at EUR -25.6 million.

- Balance sheet continues to be strong.

 

PROPOSED DIVIDEND

- The Board will propose to the AGM on 11 March 2010 a dividend of EUR 0.10 (0.65) per share.

 

THE FINANCIAL STATEMENT RELEASE

- This financial statement release has been prepared in accordance with the IAS 34 following the same accounting principles as in the annual financial statement for 2008. From the beginning of 2009, the Group adopted the amended IAS 1 Presentation of the Financial Statements standard and IFRS 8 Operating Segments standard. The amended standards have no significant impact on the presentation of the interim report. The annual figures in this financial statement release are audited. The Auditor's report is dated 1 February 2010.

- The annual report including the Report of the Board of Directors, the Financial Statements and the Corporate Governance Statement will be available on the company's website at www.poyry.com in week 6.

 

FUTURE PROSPECTS

Group sales for the full year 2010 are expected to grow. The Group's operating profit is expected to improve from 2009 even after inclusion of incremental business development expenses necessary to accelerate growth in line with the vision.

 

Heikki Malinen, President and CEO:

"The past year was challenging for Pöyry in many respects. The Group's net sales fell by 18 percent compared with 2009 and were EUR 673.5 million. Compared with the previous year, the results for our Forest Industry and Energy business groups were disappointing. In Construction services, weakened demand also led to decreased volumes; however, considering the challenging market situation, the profitability of the business group remained good. The demand for services in our Transportation business group increased, and Pöyry's position was further strengthened among both locally and internationally. In the Water & Environment business group the second half order intake was lower than expected, but the demand for water sector services, in particular, continued stable. Lack of large projects as well as low capacity utilisation decreased our profitability and operating margin, excluding restructuring costs, fell to 3.3 per cent.

 

In order to maintain our competitive position we launched in late 2008 an action programme to improve the efficiency of our operations, streamline the ways of working and adapt the capacity to prevailing market conditions. By the end of 2009 we had cut our capacity by 18 percent compared with 2008. We have achieved savings of EUR 15 million in fixed costs excluding one-off items. The action plan is proceeding to plan and we expect to achieve the targeted EUR 30 million savings in full, on a comparable basis, during 2010, whilst boosting our spending on business development and growth.

 

In December 2009, we released our new vision: Pöyry's vision is to be the global thought leader in engineering balanced sustainability for a complex world. We want to be an agenda setter in the sectors we serve and to become one of the world's leading consulting engineering companies by 2020. We see significant growth potential for our engineering and consulting offerings. We are targeting annual long-term growth of 15 per cent, and our operating margin target for each business group is a minimum of 8 per cent in the medium term and a minimum of 10 per cent in the long term. We will systematically accelerate profitable growth both organically and through acquisitions. Our balance sheet offers us the ability to survive even a prolonged recession and invest in the development of operations. The new business group structure implemented at the beginning of 2010 is aligned with our new vision, enabling us to better take advantage of the synergies between business groups.

 

The new year has started on a slightly more positive note than last year. Our clients are again planning new projects. Nevertheless, developing plans into projects takes time, and according to our estimates, we will see more actual project implementation in late 2010 and 2011. In 2010, we will implement our new business group structure, continue intensive sales efforts, improve our capacity to execute large projects, strengthen management consulting and continue pursuing attractive business acquisitions."

 

PÖYRY PLC

 

Additional information by:

Heikki Malinen, President and CEO

tel. +358 10 33 21307

Esa Ikäheimonen, CFO

tel. +358 10 33 21586

Sanna Päiväniemi, Director, Investor Relations

tel. +358 10 33 23002

 

ENCLOSURES

Board of Directors' Report, 1 January - 31 December 2009

Consolidated statement of income, balance sheet, statement of changes in financial position, changes in equity and liabilities, related party transactions, key figures and acquisitions

 

INVITATION TO CONFERENCES TODAY, 2 FEBRUARY 2010

 

A conference in Finnish will be arranged at 12 p.m. Finnish time at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland.

 

An international conference call and webcast in English will begin at 3.30 p.m. Finnish time (EET).

 

8.30 a.m. US EDT (New York)

1.30 p.m. GMT (London)

2.30 p.m. CET (Paris)

3.30 p.m. EET (Helsinki)

 

The webcast may be followed online on the company's website www.poyry.com. A replay can be viewed on the same site later the same day.

 

To attend the conference call, please dial

 

US: +1 334 420 4950

Other countries: +358 9 2313 9202

Conference id: 855853

 

We kindly ask those attending the international conference call to dial in 5 minutes prior to the start of the event.

 

Pöyry is a global consulting and engineering company dedicated to balanced sustainability. We offer our clients integrated management consulting, total solutions for complex projects, best-in-class design and supervision. Our in-depth expertise extends to the fields of energy, industry, urban & mobility and water & environment. Locally and globally our 7000 experts serve our

clients in about 50 countries. Pöyry's net sales in 2009 were EUR 674 million

and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).

 

DISTRIBUTION:

NASDAQ OMX Helsinki

Major media

www.poyry.com

 

BOARD OF DIRECTORS' REPORT 1 JANUARY - 31 DECEMBER 2009

 

MARKET REVIEW

 

After collapsing rapidly in late 2008, global industrial activity continued to be low throughout 2009. Initial signals of a possible recovery started to appear during the second half of the year. The first positive signs did not, however, have any immediate impact on demand for consulting engineering services. Clients' reluctance to make investment decisions was also reflected in Pöyry's major businesses, most notably in the forest industry, although there were areas where the market environment continued to be relatively good.

 

Activity within the energy sector was fairly stable in Europe during the first half of the year but weakened towards the end of the year. In other regions demand was at a low level throughout the year. The global recession resulting in low and volatile commodity prices, especially oil, together with the financial stringency caused by the credit crunch, were reflected in the low investment activity and prolonged decision making times in energy related projects.

 

Large investments within the pulp and paper sector have been few globally for some time and activity also remained low during 2009. The profitability challenges facing pulp and paper companies have also led to falling demand for consulting services. Also in the chemical industry the investment activity was very low.

 

Investments within the transportation sector remained at a high level, especially in large concession type projects, and demand for road and rail-bound transportation systems was particularly strong.

 

Demand for services for water and environmental infrastructure were relatively stable during the year except for Finland, where demand by the public sector declined clearly. Although new orders remained modest, towards the end of the year also industrial companies started to show an increasing interest in environmental services regarding preparation of new investment projects. Demand in emerging and developing countries for water related infrastructure projects increased.

 

The weak economic situation has clearly impacted the office and commercial building sectors where demand in Pöyry's main markets in Finland, the Baltic states and Russia was very low. On the other hand, activity in the infra and energy sectors as well as demand for consultancy and small engineering projects remained relatively good.

 

Note: Unless otherwise stated, the figures in brackets in the sections below refer to the same period in the previous year.

 

ORDER STOCK

 

Order stock, EUR million

2009

2008

Change, %

 

 

 

 

Consulting and engineering

483.6

538.6

-10.2 %

EPC

2.1

0.5

na

Total

485.7

539.1

-9.9 %

 

The Group's order stock at the end of 2009 totalled EUR 485.7 million (539.1). The order stock fell by 9.9 per cent. The drop was largest in the Forest Industry business group where the order stock almost halved compared with end 2008. The order stock declined also in the Energy, Construction Services and Water & Environment business groups. In the Transportation business group the good demand continued and the business group's order stock increased by 21.0 per cent from the previous year. The quality of the order stock is good. The value of the order stock fell by 5.5 percent from EUR 513.9 million at the end of the third quarter 2009.

 

GROUP SALES

 

Net sales by business group,

EUR million

Q4/2009

Q4/2008

(pro

forma)

2009

2008

(pro

forma)

Share of

total sales, %

FY 2009

 

 

 

 

 

 

Energy

54.5

64.3

215.6

241.3

32

Forest Industry

38.1

72.5

175.8

294.5

26

Transportation

30.2

29.0

118.5

105.5

17

Water & Environment

22.9

25.4

86.5

87.6

13

Construction Services

19.3

23.9

79.0

92.8

12

Unallocated

-3.5

-1.5

-1.9

0.0

-

Total

161.5

213.6

673.5

821.7

100

 

Net sales by region, EUR million

 

Q4/2009

Q4/2008

2009

2008

Share of

total sales, %

FY 2009

 

 

 

 

 

 

Nordic countries

50.3

58.9

194.4

234.3

29

Other Europe

74.5

98.0

323.7

363.1

48

Asia

14.7

19.5

54.7

72.6

8

North America

4.8

6.0

20.0

27.7

3

South America

9.8

20.5

50.3

89.5

7

Other

7.4

10.7

30.4

34.5

5

Total

161.5

213.6

673.5

821.7

100

 

Consolidated net sales in 2009 fell by 18.0 per cent compared with the previous year to EUR 673.5 million (821.7). Sales decreased most in the Forest Industry business group as a result of very low investment activity among the clients. Sales decreased also in the Energy and Construction Services business groups, and were fairly stable in Water & Environment. Activity in the transportation systems sector continued to be good and the Transportation business group's sales increased clearly in 2009.

 

Regionally, the situation was most challenging in South and North America where the high exposure to the forest industry had a clearly negative impact on sales. In Asia the 2008 comparison figure was high due to large projects. In addition to this, some of the restructuring measures were implemented in the region. All the other regions were supported by the more diversified business portfolio.

 

In the fourth quarter of 2009, net sales totalled EUR 161.5 million (213.6) which were 24.0 per cent less than a year ago. The Transportation business group's sales increased slightly from the fourth quarter of 2008, whereas sales fell in all other business groups. All geographical regions also reported decrease in sales for the fourth quarter compared with the previous year. However, the net sales increased by 7.5 per cent from EUR 150.2 million in the third quarter of 2009 and all business groups contributed to the increase. Of the regions, sales increased clearly in the Nordic countries, Asia and North America compared with the third quarter of 2009.

 

Business Groups (Operating segments)

The Business Group split is based on the structure which was effective 1 January - 31 December 2009. All figures for the previous years have been restated (pro forma) accordingly. All personnel numbers are calculated as full time equivalents (FTE).

 

Energy

 

Q4/

2009

Q4/

2008

Change,

%

2009

2008

Change,

%

 

 

 

 

 

 

 

Order stock, EUR million

181.9

196.4

-7.4

181.9

196.4

-7.4

Sales, EUR million

54.5

64.3

-15.2

215.6

241.3

-10.7

Operating profit excl. restructuring costs, EUR million

 

 

2.3

 

 

11.8

 

 

-80.5

 

 

11.2

 

 

32.0

 

 

-65.0

Operating margin excl. restructuring costs, %

 

4.2

 

18.3

 

 

5.2

 

13.2

 

Operating profit, EUR million

1.9

11.8

-83.9

9.1

32.0

-71.6

Operating margin, %

3.5

18.3

 

4.2

13.2

 

Personnel at end of period

1621

1870

-13.3

1621

1870

-13.3

Full year 2009

The year end order stock decreased to EUR 181.9 million (196.4), which was 7.4 per cent less than a year before. The fall in order stock reflects the slow-down in decision making on investment projects during the year which had a negative impact on the order intake. Net sales for 2009 were EUR 215.6 (241.3) million, representing a fall of 10.7 per cent. Operating profit before restructuring costs of EUR 2.1 million amounted to EUR 11.2 (32.0) million and the operating margin was 5.2 per cent of sales (13.2). Operating profit was burdened by the lack of large orders as well as a lower capacity utilisation rate compared with the previous year. The comparison figure includes EUR 6 million non-recurring income from the sale of Polartest Oy in the fourth quarter of 2008. In 2009, the Energy business group also booked EUR -4.7 million due to bad debt provisions. The capacity adjustment measures were having a positive effect towards the end of the year but were not able to compensate for the low activity rates within the business group. The capacity adjustment in the Energy business group was kept at a level that will not significantly impact the ability to continue growing when the recession is over. During the year the number of personnel decreased by 249 (FTEs) or by 13.3 per cent. Operating profit, after restructuring costs, was EUR 9.1 million or 4.2 per cent of sales.

 

Q4/2009

Net sales for the fourth quarter were EUR 54.5 (64.3) million and showed some improvement from EUR 48.7 in the third quarter of 2009. Operating profit before restructuring costs of EUR 0.4 million amounted to EUR 2.3 (11.8) million and the operating margin was 4.2 per cent of sales (18.4, including Polartest Oy EUR 6 million capital gain). As the cost savings programme was proceeding, the business group's profitability improved from the third quarter of 2009 but was still on an unsatisfactory level. Operating profit after the restructuring costs in the fourth quarter was EUR 1.9 million or 3.5 per cent of sales.

 

Forest Industry

 

 

Q4/

2009

Q4/

2008

Change,

%

2009

2008

(pro

forma)

Change,

%

 

 

 

 

 

 

 

Order stock, EUR million

45.3

86.3

-47.5

45.3

86.3

-47.5

Sales, EUR million

38.1

72.5

-47.4

175.8

294.5

-40.3

Operating profit excl. restructuring costs, EUR million

 

 

-5.3

 

 

9.5

 

 

-155.8

 

 

-7.0

 

 

50.8

 

 

-113.9

Operating margin excl. restructuring costs, %

 

-13.9

 

13.1

 

 

-4.0

 

17.2

 

Operating profit, EUR million

 

-5.7

 

9.5

 

-160,0

 

-14.7

 

50.8

 

-128.9

Operating margin, %

-15.0

13.1

 

-8.4

17.2

 

Personnel at end of period

 

1887

 

2917

 

-35.3

 

1887

 

2917

 

-35.3

 

Full year 2009

The Forest Industry business group has been most affected by the economic recession. The development of new large projects came to a halt and a lot of existing capacity was also closed down. Overall, demand fell more significantly than at any time since the recession in the early 1990s. As a result of this, the business group's order stock fell by 47.5 per cent to EUR 45.3 million from EUR 86.3 million the previous year. Net sales for 2009 were EUR 175.8 (294.5) million, representing a fall of 40.3 per cent. Operating profit before restructuring costs of EUR 7.7 million amounted to EUR -7.0 (50.8) million and the operating margin was -4.0 per cent of sales (17.2). The fall in profitability was due to greatly reduced activity rates. In 2009, the Forest Industry business group also booked EUR -1.1 million due to bad debt provisions. During the year the number of personnel decreased by 1030 (FTEs) or by 35.3 per cent in order to balance the capacity and cost base to demand but, at the same time, not to jeopardise future growth. Operating profit after restructuring costs was EUR ‑14.7 million and -8.4 per cent of sales.

 

Q4/2009

Net sales for the fourth quarter were EUR 38.1 (72.5) million showing a slight increase compared with the EUR 35.2 million in the third quarter. Operating profit before restructuring costs of EUR 0.4 million amounted to EUR -5.3 (9.5) million and the operating margin was -13.9 per cent of sales (13.1). Profitability continued to decrease as the activity rates remained low. Operating profit after restructuring costs was EUR -5.7 million or -15.0 per cent of sales.

 

Transportation

 

 

Q4/

2009

Q4/

2008

Change,

%

2009

2008

(pro

forma)

Change,

%

 

 

 

 

 

 

 

Order stock, EUR million

158.4

130.9

21.0

158.4

130.9

21.0

Sales, EUR million

30.2

29.0

4.1

118.5

105.5

12.3

Operating profit excl. restructuring costs, EUR million

 

 

2.3

 

 

3.3

 

 

-30.3

 

 

9.4

 

 

9.2

 

 

2.2

Operating margin excl. restructuring costs, %

 

7.6

 

11.3

 

 

7.9

 

8.7

 

Operating profit, EUR million

 

2.3

 

3.3

 

-30.3

 

9.4

 

9.2

 

2.2

Operating margin, %

7.6

11.3

 

7.9

8.7

 

Personnel at end of period

1162

1073

8.3

1162

1073

8.3

 

Full year 2009

Demand for services in the transportation sector continued to grow at a steady rate during 2009, with the demand for road and rail-bound transportation systems particularly strong. Demand was mainly supported by the public sector spending. There was also increasing activity in large concession type projects being carried out by contractors. Backed up by the good market situation, the order stock increased by 21.0 per cent to EUR 158.4 million from EUR 130.9 million the previous year. The full year net sales increased by 12.3 per cent and were EUR 118.5 (105.5) million. Operating profit amounted to EUR 9.4 (9.2) million and the operating margin was 7.9 per cent of sales (8.7). To better meet the increasing demand the number of personnel was increased by 89 (FTEs) or by 8.3 per cent in 2009.

 

Q4/2009

Net sales for the fourth quarter were EUR 30.2 (29.0) million. Operating profit was on a good level and amounted to EUR 2.3 (3.3) million. Operating margin was 7.6 per cent of sales (11.3).

 

Water & Environment

 

 

Q4/

2009

Q4/

2008

Change,

%

2009

2008

(pro

forma)

Change,

%

 

 

 

 

 

 

 

Order stock, EUR million

62.3

76.8

-18.9

62.3

76.8

-18.9

Sales, EUR million

22.9

25.4

-9.8

86.5

87.6

-1.3

Operating profit excl. restructuring costs, EUR million

 

 

1.5

 

 

1.8

 

 

-16.7

 

 

5.1

 

 

4.2

 

 

21.4

Operating margin excl. restructuring costs, %

 

6.6

 

7.3

 

 

5.9

4.8

 

Operating profit, EUR million

 

1.5

 

1.8

 

-16.7

 

4.9

 

4.2

 

16.7

Operating margin, %

6.6

7.3

 

5.7

4.8

 

Personnel at end of period

908

976

-7.0

908

976

-7.0

 

Full year 2009

Demand for engineering in the environmental infrastructure sector, especially in the water sector, remained relatively stable during the year. However, the order intake was weak especially during the second half of the year, resulting in a decrease of the order stock. The order stock fell by 18.9 per cent to EUR 62.3 million from EUR 76.8 million the previous year. Net sales for 2009 were fairly stable at EUR 86.5 (87.6) million. Operating profit before restructuring costs of EUR 0.2 million increased by 21.4 per cent to EUR 5.1 (4.2) million. Operating margin was 5.9 per cent of sales (4.8). Operating profit after restructuring costs was EUR 4.9 million and the operating margin was 5.7 per cent of sales. During the year the number of personnel decreased by 68 (FTEs) or by 7.0 per cent.

 

Q4/2009

Net sales for the fourth quarter were EUR 22.9 (25.4) million. This was 11.2 per cent more than the EUR 20.6 million in the third quarter of 2009. Operating profit was EUR 1.5 million and 6.6 per cent of sales.

 

Construction Services

 

 

Q4/

2009

Q4/

2008

Change,

%

2009

2008

(pro

forma)

Change,

%

 

 

 

 

 

 

 

Order stock, EUR million

37.5

48.3

-22.4

37.5

48.3

-22.4

Sales, EUR million

19.3

23.9

-19.2

79.0

92.8

-14.9

Operating profit excl. restructuring costs, EUR million

 

 

2.0

 

 

1.9

 

 

5.3

 

 

7.3

 

 

9.9

 

 

-26.3

Operating margin excl. restructuring costs, %

 

10.4

 

8.1

 

 

9.2

 

10.7

 

Operating profit, EUR million

 

1.8

 

1.9

 

-5.3

 

6.5

 

9.9

 

-34.3

Operating margin, %

9.3

8.1

 

8.3

10.7

 

Personnel at end of period

831

971

-14.4

831

971

-14.4

 

Full year 2009

Investment activity, especially in the office and commercial construction sectors, remained very weak during the year. The order stock fell by 22.4 per cent to EUR 37.5 million from EUR 48.3 million the previous year. Net sales for 2009 were EUR 79.0 (92.8) million. Operating profit before restructuring costs of EUR 0.8 million amounted to EUR 7.3 (9.9) million and the operating margin was 9.2 per cent of sales (10.7). Considering the very difficult market situation, Construction Services was able to maintain its profitability and capacity utilisation rates on a good level even if there were clear signs of tougher price competition as well as a lack of larger projects. During the year the number of personnel decreased by 140 (FTEs) or by 14.4 per cent. Operating profit after restructuring costs was EUR 6.5 million or 8.3 per cent of sales.

 

Q4/2009

Net sales for the fourth quarter were EUR 19.3 (23.9) million. Sales increased by 14.9 per cent compared with the EUR 16.8 million in the third quarter of 2009. Operating profit before restructuring costs of EUR 0.2 million amounted to EUR 2.0 (1.9) million and the operating margin was 10.4 per cent of sales (8.1). Operating profit after restructuring costs was EUR 1.8 million or 9.3 per cent of sales.

 

Group Overhead

Unallocated costs in 2009 were EUR 3.6 million (5.5), representing 0.5 per cent of sales (0.7).

 

GROUP FINANCIAL RESULT

 

The full year 2009 consolidated operating profit totalled EUR 11.6 million (100.6, including EUR 6 million capital gain) which was EUR 89 million less than a year ago. The fall was mainly due to profitability challenges in Energy and Forest Industry business groups. The good performance in the Transportation, Water & environment and Construction Services business groups was not able to compensate for the drop in Energy and Forest Industry. Operating profit in Construction Services declined clearly compared to 2008 but profitability remained on a good level considering the difficult market situation in the sector. The Group's operating pro­fit includes restructuring costs of EUR 10.9 million which relate to the cost savings programme that was launched in late 2008. Operating profit also includes a booking of EUR -6.5 million due to bad debt provisions. The consolidated operating margin including restructuring costs fell to 1.7 per cent (12.2).

 

The consolidated operating profit in the fourth quarter was EUR 0.7 million (26.7) or 0.4 per cent of sales (12.5). Profitability decreased in all business groups. The activity rates continued low in especially Forest Industry and Energy, and the capacity adjustment measures were not sufficient to compensate for this. The fourth quarter operating profit includes EUR 1.0 million of restructuring costs.

 

The full year net financial items showed an income of EUR 0.8 million (2.6).

 

Profit before taxes totalled EUR 12.4 (103.2).

 

Income taxes were EUR 4.4 million (30.6). The actual effective tax rate for the year 2009 was 35.5 per cent which is high due to profits in higher-tax countries and some losses in entities for which no deferred tax asset was recognized.

 

Net profit for the period was EUR 8.0 (72.6) million of which EUR 6.5 million was attributable to equity holders of the parent company and EUR 1.5 million to minority interests.

 

Earnings per share were EUR 0.11 (1.21 basic; 1.19 diluted).

 

BALANCE SHEET

 

The consolidated balance sheet is healthy. The year-end consolidated balance sheet amounted to EUR 515.4 million, which was EUR 64.9 million lower than at year-end 2008 and EUR 3.4 million lower than at end September 2009. Total equity at the end of the report period was EUR 184.0 million (211.1). Total equity attributable to equity holders of the parent company at year-end 2009 was EUR 176.0 million (203.4) or EUR 2.98 per share (3.45).

 

Return on equity (ROE) was 4.1 per cent (38.7). Return on investment (ROI) was 5.3 per cent (45.4).

 

CASH FLOW AND FINANCING

 

Net cash from operating activities in the full year 2009 was EUR -10.4 million (56.6), representing EUR -0.18 per diluted share (0.95). Net cash before financing activities was EUR -25.6 million (45.7). In the fourth quarter, net cash before financing activities was EUR 24.7 million (32.4).

 

Year-end net cash totalled EUR 19.3 (81.2) million which was EUR 15.7 million more than at end September 2009. The net debt/equity ratio (gearing) was -10.5 (-38.5) per cent. The equity ratio was 40.9 per cent (41.7).

 

The Group's liquidity is good. At the end of the year, the Group's cash and cash equivalents and other liquid assets amounted to EUR 142.0 (203.7) million. In addition to these, the Group had unused long-term overdraft facilities amounting to EUR 92.6 million.

 

Pöyry paid its shareholders dividends amounting to EUR 38.0 million or EUR

0.65 per share in March 2009.  

 

Calculation of key figures is presented on the Key Figures pages of the Financial Statements.

 

CAPITAL EXPENDITURE AND ACQUISITIONS

 

The Group's capital expenditure totalled EUR 9.8 million, of which EUR 4.8 million consisted mainly of computer software, systems and hardware and EUR 5.0 million was due to acquisitions.

 

Capital expenditure, EUR million

2009

2008

 

 

 

Capital expenditure, operative

4.8

10.7

Capital expenditure, shares

5.0

8.9

Capital expenditure, total

9.8

19.6

 

HUMAN RESOURCES

 

Personnel (FTE)

2009

2008, pro forma

 

 

 

Energy

1621

1870

Forest Industry

1887

2917

Transportation

1162

1073

Water & Environment

908

976

Construction Services

831

971

Group staff and shared resources

121

117

Personnel at end of period, total

6530

7924

Personnel on average, total

7052

7702

 

Personnel structure

Capacity adjustment measures led to a fall in the total number of personnel in the Group in 2009. The Group had an average of 7052 (7702) employees (FTEs) during the year, which is 8.4 per cent less than in 2008. The number of personnel at the end of the year was 6530 (7924). By end 2009, 25 per cent of the capacity reductions were implemented as temporary lay-offs. Altogether 265 (391) employees have a fixed-term contract.

 

Personnel expenses

 

Personnel expenses, EUR million

2009

2008

 

 

 

Wages and salaries

319.9

337.6

Bonuses

6.9

18.4

Expenses from share-based incentive programmes

2.2

1.8

Social expenses

72.5

76.0

Personnel expenses, total

401.5

433.8

 

Wages and salaries as well as bonuses in the Pöyry Group are determined on the basis of local collective and individual agreements, individual employees' performances and the required qualification level. Supplementing the base salary, the Group has implemented bonus schemes which are primarily aimed at Group companies' line management, but which will be increasingly directed at individual experts, for example staff in project work.

 

Performance share plan 2008-2010

In December 2007, the Board of Directors of Pöyry PLC approved a share-based incentive plan for the key personnel. The plan comprises three earning periods, which are the calendar years 2008, 2009 and 2010. The rewards will be paid partly (50 per cent) in the company's shares and partly (50 per cent) in cash in 2009, 2010 and 2011. The criteria for the reward payouts for the years 2008 and 2009 were the Group's earnings per share (EPS) and net sales.

 

For the earning period 2008, the payout ratio was 180.89 per cent corresponding to a value of 433 454 shares. The payments were made to the participants in April 2009 and a total of 215 641 shares were transferred to the recipients. The number of shares transferred to the recipients as at 26 January 2010 is 206 957 taking into account the returns of shares. The incentive plan for the earning period 2008 included approximately 300 persons.

 

In February 2009 the Board of Directors of Pöyry PLC resolved that the value of the plan for the earning period 2009 will correspond to 400 000 shares, if the target performance set by the Board of Directors is met. Due to significant drop in the Group's result in 2009, the pay-out for the earning period 2009 is zero.

 

Human resources management

The year under review was overshadowed by the recession. To make the best possible use of its resources for project work and to maintain good capacity utilisation, the company intensified the sharing of resources both across business unit and geographical borders. Despite these measures, lay-offs were unavoidable and significant capacity reductions were made especially in Finland, Brazil, Russia, Sweden and North America.

 

To ensure that the Pöyry Group's capabilities will develop in accordance with changing business needs, the principles and actions for competence development are defined as a part of the annual strategy process. Developing managerial skills and encouraging job mobility within the organisation were major focus areas, as in the previous year. However the cost saving programme naturally also impacted the development activities leading to reduced training opportunities.

 

Our new vision creates exciting professional opportunities and is a welcomed energiser for the employees after a tough year. We will continue to have increased job mobility, which is an important step in the development towards an even more multi-skilled and diverse leadership pool. The new vision further supports building a strong community with shared goals and a uniform Pöyry identity.

 

RESEARCH AND DEVELOPMENT

 

The key cornerstone in Pöyry's business is the ability to provide clients with a full range of innovative and value-adding consulting engineering services covering the entire lifecycle of their investment projects.

 

To be able to help clients truly improve their businesses, Pöyry is continuously engaged in numerous research and development projects. The projects are conducted both on Pöyry's own initiative and in partnership with clients and research institutions. In 2009 Pöyry was involved in a number of development projects that are related to climate change, development of new products and services, operations improvement and methodology and software. As the R&D expenses are mainly embedded in client projects, they have not been accounted for separately.

 

In order to better utilise the competence capital within the Group, a Knowledge Management tool was developed in 2009 and launched at the beginning of 2010. Pöyry's organisation has an abundance of expertise and talent and this tool helps to put all this information systematically at the disposal of the entire global office network. The tool provides a platform for discussing and exchanging knowledge with experts, which can be used to compile, organise and analyse the special expertise, knowledge and data available in different parts of the organisation. A longer-term objective of the Knowledge Management development programme is to launch new projects, which may be related to widely different focus areas.

 

GOVERNANCE

 

Annual General Meeting

The Annual General Meeting (AGM) of Pöyry PLC was held on 10 March 2009. The AGM adopted Pöyry PLC's financial statements and the consolidated statements and granted the members of the Board of Directors, the company's President and CEO, and the Deputy to the President and CEO discharge from liability for the financial period 1 January to 31 December 2008.

 

The AGM approved the proposal of the Nomination and Compensation Committee that the Board of Directors should consist of seven (7) ordinary members. The AGM re-elected the following members to the Board of Directors: Henrik Ehrnrooth, Pekka Ala-Pietilä, Alexis Fries, Heikki Lehtonen, Harri Piehl and Karen de Segundo. In addition, the AGM elected Michael Obermayer, Ph.D., as a new member of the Board. Franz Steinegger gave notice that he was not available for re-election.

 

The Board of Directors elected Henrik Ehrnrooth as Chairman and Heikki Lehtonen as Vice Chairman. Heikki Lehtonen, Harri Piehl and Alexis Fries were elected members of the Audit Committee. Henrik Ehrnrooth, Heikki Lehtonen, Karen de Segundo, Pekka Ala-Pietilä, as well as Georg Ehrnrooth as an external member, were elected members of the Nomination and Compensation Committee.

 

KPMG Oy Ab, Authorised Public Accountants, continues as Pöyry PLC's auditors based on the resolution by the AGM on 6 March 2002. Sixten Nyman, Authorised Public Accountant, continues as Auditor in Charge.

 

Changes in executive management

In March, Esa Ikäheimonen took over as CFO and member of the Group Executive Committee. In addition to the Group's financial operations, the CFO's responsibilities were widened to cover also group-wide IT development and operations, real estate management and investor relations. In the same connection, Lars Rautamo moved from his position as CFO to lead the Group's Internal Audit function, and his membership in the Group Executive Committee ended.

 

In April, the President and CEO of Pöyry PLC, Heikki Malinen, took over the duties of the President of the Forest Industry business group in addition to his own position. At the same time, John Lindahl, President of the Forest Industry business group, was appointed Senior Vice President, Key Account Management of the Forest Industry business group, and his membership in the Group Executive Committee ended.

 

In September, Martin Kuzaj was appointed Executive Vice President of Pöyry PLC and President of the Forest Industry business group as well as a member of the Group Executive Committee. Dr Kuzaj began in his duties in October 2009.

 

In September, Teuvo Salminen, Deputy to the President and CEO of Pöyry PLC, announced that he will, at his own request, step down from his present position from the beginning of 2010. His membership in the Group Executive Committee ended on 31 December 2009.

 

In December, Pöyry announced its new business structure and appointments in management which came into effect as of 1 January 2010. The new business groups are Energy, Industry, Urban & Mobility, Water & Environment and Management Consulting. In addition, a function was established for group strategic growth, and group level commercial transactions were combined with the group legal affairs and risk management function. The following appointment to the Group Executive Committee were made:

 

- Heikki Malinen, President and Chief Executive Officer

- Ari Asikainen, Executive Vice President (EVP) and President, Energy business group

- Martin Kuzaj, EVP and President, Industry business group

- Andy Goodwin, EVP and President, Urban and Mobility business group

- Bernd Kordes, EVP and President, Water & Environment business group (also acting President, Management Consulting business group)

- Esa Ikäheimonen, Chief Financial Officer

- Richard Pinnock, EVP, Group Strategic Growth

- Camilla Grönholm, EVP, Human Resources

- Anne Viitala, EVP, Legal and Commercial

 

Bernd Kordes announced on 12 January 2010 that he will leave Pöyry and his membership in the Group Executive Committee ended on the same day. On 1 February 2010 Pöyry announced two appointments to the Group Executive Committee: Dr. Norbert Gorny, 46, was appointed Executive Vice President of Pöyry PLC and President of the Management Consulting business group, and Martin Bachmann, 42, was appointed Executive Vice President of Pöyry PLC and President of the Water & Environment business group.

 

Pöyry publishes its Corporate Governance Statement separately from the Report of the Board of Directors and the Financial Statements in connection with its Annual Report.

 

AUTHORISATIONS

 

The AGM on 10 March 2009 authorised the Board of Directors to decide on the acquisition of a maximum of 5 800 000 of the company's own shares with distributable funds. The authorisation shall remain in force for 18 months from the decision of the AGM. The authorisation is explained in more detail in the release covering the resolutions of the AGM, which is available on the company's website at www.poyry.com.

 

In March 2009, the Board of Directors of Pöyry decided to exercise the authority given by the AGM to acquire the company's own shares. Between 18 March and 14 May Pöyry repurchased 64 818 shares at the average share price of EUR 8.88. At the end of 2009, Pöyry had 377 157 of its own shares in its possession, corresponding to 0.6 per cent of total shares.

 

The AGM on 10 March 2008 authorised the Board of Directors to decide on the issue of a maximum of 11 600 000 new shares and to convey a maximum of 5 800 000 of the company's own shares held by the company in one or more tranches. The authorisation shall remain in force for three years from the decision of the AGM 2008, i.e. until 2011. Details of the authorisation are explained in more detail in the release covering the resolutions of the AGM, which is available on the company's website at www.poyry.com.

 

In March 2009, the Board of Directors of Pöyry resolved on a directed share issue on the basis of the authorisation given by the AGM 2008. The directed share issue is part of the share-based incentive plan 2008-2010 for key personnel of the company. More detailed information about the incentive plan was released in the company announcement on 11 December 2007.

 

A total of 216 727 of the company's own shares were conveyed without consideration to the target group of the incentive plan's earning period 2008 in accordance with the terms and conditions of the incentive plan. In addition to this, the Board of Directors resolved on a directed share issue and conveyed without consideration a total of 10 000 of the company's own shares to a number of employees in accordance with the terms and conditions of their incentive plans. The directed share issue does not affect the company's share capital or the company's total number of shares. After the directed share issue the maximum number of shares that may be conveyed is 5 573 273 shares.

SHARE CAPITAL AND SHARES

 

The share capital of Pöyry PLC at year-end 2009 totalled EUR 14 588 478. The total number of shares including treasury shares totalled 58 971 398 at the end of 2009.

 

Between March and May 2009 Pöyry repurchased 64 818 of the company's own shares on the basis of the authorisation given by the AGM 2009 and the decision of the Board of Directors of Pöyry PLC in 2009. In early 2009 Pöyry repurchased 139 000 of the company's own shares on the basis of the authorisation given by the AGM 2008.In addition to this, Pöyry PLC purchased from its subsidiary the 8914 Pöyry PLC's shares it held. In total, EUR 1.9 million was used for share repurchases in 2009.

 

On 31 December 2009, Pöyry held a total of 377 157 treasury shares, which corresponds to 0.6 per cent of the total number of shares and which at that date had a market value of EUR 4.2 million.

 

SHARES SUBSCRIBED FOR UNDER THE OPTION PROGRAMME

 

Pursuant to Pöyry's stock option plans, 92 796 new shares were subscribed for and registered in the Finnish Trade Register in 2009, of which 72 688 during the fourth quarter. As a result of these subscriptions, the total number of Pöyry's shares including treasury shares increased to 58 971 398 shares.

 

The stock options issued under Pöyry PLC's ongoing stock option plans at year-end 2009 entitle holders to subscribe for a total of 1 707 448 shares, which would increase the total number of Pöyry's shares (including treasury shares) to 60 678 846. The option programmes include approximately 40 key persons.

 

All shares carry one vote per share and equal rights to dividends. The terms and conditions of the stock option programme are available on Pöyry's website at www.poyry.com.

 

MARKET CAP AND TRADING

 

The closing price of Pöyry's shares on 31 December 2009 was EUR 11.17. The volume weighted average share price for January-December was EUR 9.78, the highest quotation being EUR 13.17 and the lowest EUR 7.55. The share price increased 43 per cent from the end of 2008. In January-December approximately 20.6 million Pöyry shares were traded on the NASDAQ OMX Helsinki, corresponding to a turnover of approximately EUR 201.1 million. The average daily trading volume was about 82 000 shares or EUR 0.8 million.

 

On 31 December 2009, the total market value of Pöyry's shares was EUR 654.5 million excluding treasury shares held by the company and EUR 658.7 million including treasury shares.

 

OWNERSHIP STRUCTURE

 

During 2009, the number of registered shareholders rose from 4724 at the end of 2008 to 6933 at the end of 2009, representing growth of 47 per cent. The number of Finnish retail investors increased by more than 48 per cent.

 

Corbis S.A. continued to be the largest shareholder with 31.57 per cent of the voting rights on 31 December 2009. The Chairman of the Board of Directors of Pöyry, Henrik Ehrnrooth, holds indirectly with his brothers Georg Ehrnrooth and Carl-Gustaf Ehrnrooth a controlling interest in Corbis S.A.

 

At the end of 2009 a total of 18.86 per cent (24.26) of the voting rights were owned by nominee-registered shareholders. Total ownership outside Finland, including Corbis, together with nominee-registered shareholders was in total 51.5 per cent (56.5) of the voting rights.

 

FLAGGINGS

 

Pöyry PLC was informed in November 2009 that the shareholding of Ilmarinen Mutual Pension Insurance Company, Finland had fallen to below 1/20 of the share capital and voting rights in Pöyry PLC.

 

On 11 November, the shareholding of Ilmarinen was 3.43 per cent of the share capital, entitling it to 3.46 per cent of the voting rights in Pöyry PLC.

 

No other disclosures of changes in holdings were received by the time of the release of this report.

 

IMPORTANT EVENTS DURING 2009

 

Capacity reductions

The global financial crisis sparked off an economic downturn that was reflected in the operations of Pöyry. In January 2009 Pöyry announced that clearly reduced demand and lower capacity utilisation was expected to significantly reduce the Group's profit before taxes for 2009 compared with 2008 and started adapting its capacity to demand.

 

During 2009, Pöyry implemented significant adaptation measures in the Finland-based units of its Forest Industry business group. The capacity was also downsized in the Brazilian unit as well as in other countries where the Forest Industry business group operates. As part of these actions, the company also changed the Forest Industry business group's organisation and operating model. In order to improve its cost competitiveness the business group's detail engineering services was decided to be consolidated in the offices at Kouvola in Finland, Sao Paulo in Brazil, Lodz in Poland and Jinan in China.

 

Capacity was adjusted also in other business groups and in various locations. The total decrease in capacity calculated on FTE basis was 18 percent compared with the end of 2008.

 

Important contracts

Despite the economic downturn and low overall investment activity, Pöyry was awarded a number of important contracts during the year.

In March, the Energy business group was awarded an EPC contract by the Styrian Utility Steweag/Steg for rehabilitation of the 110 kV substation Neudorf/Werndorf in Austria. The contract will be executed in a consortium with Siemens Austria. Pöyry's share of the contract amounts to about EUR 6.5 million. The project was started in March 2009 and will be completed by mid 2011.

 

In April, the Energy business group was awarded an owner's engineering services contract by OMV Power International GmbH for an 800 MW combined-cycle power plant project in Haiming, Germany. The project is being undertaken by the OMV Kraftwerk Haiming GmbH, an affiliated company of OMV Power International GmbH in Austria. Pöyry will assist the customer in the permitting process, preparation of tender documents for the EPC turnkey contract and the long-term service agreement contract. The value of the assignment is about EUR 6 million.

 

In June, the Forest Industry business group was commissioned to provide permitting engineering services for the Investlesprom's Segezha pulp mill in Russia. The services include project management and permitting engineering services for all disciplines extended over the whole pulp mill, which will have a production capacity of about 850 000 t/a. The total value of the assignment exceeds EUR 6 million. The assignment was started immediately and will be completed by mid 2010.

 

In September, the Energy business group signed a comprehensive EPCM (Engineering, Procurement and Construction Management) services contract with Vantaa Energy Ltd for a waste-to-energy plant to be built in Vantaa, Finland. The contract covers a wide range of project services including project management, procurement, design, engineering, construction management, site supervision and commissioning services. The new plant will process 320,000 t/a of municipal waste, and produce 67 MW of electric power and 100 MW of district heat. The value of the assignment is about EUR 8 million. The plant is scheduled to start operation in 2014.

 

In October, the Transportation business group was awarded the design contract for the new airport rail link in Katowice, Poland, by PKP Polskie Linie Kolejowe S.A. Pöyry is leading the design consortium with DB International in the project, which includes 38 km of railway line and 28 new structures such as bridges. Pöyry's share of the total assignment is EUR 7.5 million. The design phase will last from October 2009 to May 2011 and will also include a complete environmental impact assessment and obtaining the relevant environmental permits. The project is financed by the EU Cohesion Fund and the Polish State budget.

 

THE COST SAVINGS PROGRAMME

 

Pöyry launched in late 2008 an action programme designed to maintain its profitability at an acceptable level throughout the current recession. The programme focuses on sales, resources, cost structure and investments aimed at optimising the balance between short-term profitability and long-term capabilities and growth.

 

The cost saving target for fixed expenses on an annual basis was set at about EUR 30 million compared with the 2008 cost base excluding one-off restructuring expenses. At the end of the year, cost savings of some EUR 15 million were achieved in line with plans. Capacity reduction measures during 2009 exceeded the 12 per cent target. By the end of the year group-wide capacity was reduced by 18 per cent by both permanent and temporary lay-offs.

 

STRATEGY DEVELOPMENT AND IMPLEMENTATION

 

Pöyry started a vision and strategy process at the end of 2008, preparing the guidelines for Pöyry's growth into a truly global multinational

company during the next decade. In December 2009, the new vision according to which Pöyry is to become "the global thought leader in engineering balanced sustainability for a complex world" was launched.

 

The new vision is driven by the major challenges within Pöyry's customer sectors. Urbanization and population growth, the shift in economic balance, environmental degradation and redirection of technological innovation will have a major impact on global demand and clients' businesses.

 

Pöyry sees growth opportunities being created by these drivers and it intends to be an agenda setter in this respect in the sectors it serves. The company will sharpen its focus on larger projects, management consulting, cost-effectiveness in detail engineering and core geographical markets.

 

In connection with the new vision Pöyry realigned its business structure to better enable the implementation of the vision. The new business structure and related appointments in the Group Executive Committee have been effective since 1 January 2010.

 

Pöyry aims to be one of the world's leading consulting engineering companies by 2020. To achieve this, the Group set a new 15 per cent annual over the cycle long-term growth target in connection with the vision launch. The Group's other financial targets are unchanged as follows:

 

- operating profit margin target for each business group is a minimum of 8 per cent in the medium term and a minimum of 10 per cent in the long term

- return on investment 20 per cent or higher

- earnings/share, annual growth 15 per cent or higher

- gearing below 30 per cent

- dividend/earnings ratio 50 per cent or higher

 

IMPORTANT EVENTS AFTER THE END OF THE REPORTING PERIOD

 

In January 2010, the member of the Pöyry Group's Executive Committee and President of the Water & Environment business group, Bernd Kordes, announced that he will leave Pöyry to join another company. Mr Kordes will carry on his duties as President of the Water & Environment business group as well as acting President of the Management Consulting business group over a transition period but his membership in the Group Executive Committee ended on 12 January 2010.

 

Pöyry appointed on 1 February 2010 two new members to its Group Executive Committee. Dr. Norbert Gorny, 46, was appointed Executive Vice President of Pöyry PLC and President of the Management Consulting business group. Martin Bachmann, 42, was appointed Executive Vice President of Pöyry PLC and President of the Water & Environment business group. They both report to Heikki Malinen, President and CEO of Pöyry PLC.

 

MOST SIGNIFICANT RISKS AND BUSINESS UNCERTAINTIES

 

The major risks relate to the potential prolongation and further deterioration of the world economy. The fall in demand for Pöyry's services may lead to falling sales volumes and thus a fall in profits.

 

The impacts of the economic downturn have been most clearly reflected in the operations of Pöyry's Forest Industry, Energy, and Construction Services business groups, and currently it is difficult to predict exactly when the demand will recover for either of these business groups.

 

In response to these risks Pöyry has launched an action programme to keep the Group's profitability at as high a level as possible. The programme's focus is on sales, resources, cost structure, investments and financing.

 

Pöyry's financial position is solid and its strong balance sheet supports securing its liquidity. Difficulties in project financing may cause problems for Pöyry's clients, which may lead them to postpone projects or even to cancel existing orders. In such cases there is an increased risk of credit losses.

 

The financial crisis has hampered the availability of loan financing. Pöyry has countered this by significantly strengthening its already strong financial position and liquidity.

 

MARKET OUTLOOK FOR 2010

 

The outlook for the market segments is presented according to Pöyry's new business structure.

 

Environmental legislation focused on combating climate change will continue to drive demand for renewable energy and energy efficiency related services. In emerging markets there is also continued growth in demand for energy. In the shorter term, clients decision making processes are still expected to be prolonged, which will lead to compressed activity and tight competition among energy projects in the near future.

 

The economic downturn has clearly hit the industrial projects in two of Pöyry's main client sectors, i.e. forest and chemical industries. The large majority of planned projects in the forest industry have been stopped and many of the largest chemical industry projects have also been put on hold. Preliminary engineering work for new investment projects and other pre-investment activity are showing strengthening signals of recovery in certain areas, most notably in Russia, China and Brazil. Uncertainty regarding the timing of new investment projects remains and investment activity in these areas is not expected to recover markedly over the short to medium term.

 

Increasing urbanization, mobility and the need for transportation solutions continue to have a positive impact on future investments. In the shorter term, investments in the transportation sector are anticipated to continue actively. Within the construction sector low investment activity, particularly in the commercial and also in the industrial sector, is expected to continue, but to recover during the second half of the year. Demand for engineering in energy and infrastructure related projects is expected to continue as relatively stable, or slightly improve.  

 

The demand for services in water supply, sanitation, solid waste and overall adaptation to climate change, remains promising and the global economic downturn has had limited effects on this sector as these projects are largely publicly financed. There are also signs of an increase in demand for environmental services for industrial clients.

 

Further complexities faced by customers, such as making business decisions, changes in legislation, the need for a new and broader approach on sustainability as well as customers' increasing focus on improving business performance, are expected to drive demand for management consulting services.

 

THE GROUP'S FUTURE PROSPECTS

 

Uncertainty still prevails in the economic environment. The longer term growth trends are expected to remain valid within Pöyry's customer sectors but it is still difficult to forecast demand over the shorter term.

 

Based on the current order stock and outlook for new orders, Group sales for the full year 2010 are expected to grow. The preconditions for sales growth are strongest in Management Consulting, Energy and Urban & Mobility. In Energy, prolonged postponement of projects may, however, continue to have a negative impact on sales. Investment activity in the forest and chemical industry sectors is not expected to recover significantly over the short to medium term, which puts pressure on the Industry business group's sales growth, especially in 2010. Sales in the Water & Environment business group are expected to remain stable.

 

The Group's operating profit is expected to improve from 2009 even after inclusion of incremental business development expenses necessary to accelerate growth in line with the Vision. The Energy business group's operating profit is estimated to improve. The Industry business group's operating profit is estimated to be stable excluding one-time costs. The Urban & Mobility business group's operating profit is expected to remain stable. The Water & Environment business group's operating profit is expected to remain stable. The Management Consulting business group's operating profit is expected to improve.

 

Acquisitions are a central part of Pöyry's strategy. Acquisitions will be made in cases where the target company offers strategic advantages and supports Pöyry's objectives.

 

BOARD OF DIRECTORS' PROPOSAL FOR DISPOSAL OF DISTRIBUTABLE FUNDS

 

Pöyry Group's parent company Pöyry PLC's net profit for 2009 was EUR 68 740 331.90 and retained earnings EUR 26 808 970.11, so the total amount of distributable earnings was EUR 95 549 302.01. The Board of Directors of Pöyry PLC proposes to the Annual General Meeting on 11 March 2010 that a dividend of EUR 0.10 (0.65) per share be paid for the year 2009. The number of outstanding shares is 58 589 537 and the total amount of dividends thus EUR 5 858 953.70. The proposed dividend corresponds to 90.9 (53.7) per cent of the earnings per share for the financial year. The Board of Directors proposes that the dividend be paid on 23 March 2009.

 

The Auditor's report is dated 1 February 2010.

 

Vantaa, 1 February 2010

Pöyry PLC

Board of Directors

 

PÖYRY GROUP

 

 

 

 

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

EUR million

10-12/

2009

10-12/

2008

1-12/

2009

1-12/

2008

 

 

 

 

 

NET SALES

161.5

213.6

673.5

821.7

 

 

 

 

 

Other operating income

0.3

6.1

0.8

6.6

 

 

 

 

 

Share of associated companies' results

-0.1

0.0

0.5

2.2

 

 

 

 

 

Materials and supplies

-2.2

-3.7

-7.0

-15.3

External charges, subconsulting

-26.8

-28.8

-90.6

-101.0

Personnel expenses

-93.3

-113.6

-401.5

-433.8

Depreciation

-2.0

-2.6

-8.2

-9.0

Other operating expenses

-36.7

-44.3

-155.9

-170.8

 

 

 

 

 

OPERATING PROFIT

0.7

26.7

11.6

100.6

Proportion of net sales, %

0.4

12.5

1.7

12.2

 

 

 

 

 

Financial income

0.8

2.3

5.0

6.3

Financial expenses

-1.3

-1.8

-5.6

-3.5

Exchange rate differences

1.0

-0.2

1.4

-0.1

Value decrease on non-current investment

0.0

-0.1

0.0

-0.1

PROFIT BEFORE TAXES

1.2

26.9

12.4

103.2

Proportion of net sales, %

0.7

12.6

1.8

12.6

 

 

 

 

 

Income taxes

0.2

-6.6

-4.4

-30.6

 

 

 

 

 

NET PROFIT FOR THE PERIOD

1.4

20.3

8.0

72.6

 

 

 

 

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

Translation differences

2.2

-6.4

4.2

-8.5

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

3.6

13.9

12.2

64.1

 

 

 

 

 

Net profit attributable to:

 

 

 

 

Equity holders of the parent company

1.0

19.8

6.5

70.8

Minority interest

0.4

0.5

1.5

1.8

 

 

 

 

 

Total comprehensive income attributable to:

 

 

 

 

Equity holders of the parent company

3.2

13.4

10.7

62.3

Minority interest

0.4

0.5

1.5

1.8

 

 

 

 

 

Earnings/share, attributable to the equity

holders of the parent company, EUR

0.02

0.34

0.11

1.21

Corrected with dilution effect

0.02

0.34

0.11

1.19

 

STATEMENT OF FINANCIAL POSITION

 

 

EUR million

31 Dec. 2009

31 Dec. 2008

 

 

 

ASSETS

 

 

 

 

 

NON-CURRENT ASSETS

 

 

Goodwill

101.3

95.9

Intangible assets

5.4

6.2

Tangible assets

16.6

18.8

Shares in associated companies

5.5

5.8

Other shares

1.9

1.7

Loans receivable

1.5

0.1

Deferred tax receivables

9.5

6.2

Pension receivables

0.3

0.3

Other  

7.5

5.0

Total

149.5

140.0

 

 

 

CURRENT ASSETS

 

 

Work in progress

78.8

69.3

Accounts receivable

127.3

143.5

Loans receivable

0.1

0.8

Other receivables

7.5

10.3

Prepaid expenses and accrued income

10.2

12.7

 

 

 

Financial assets at fair value through

profit and loss

27.9

0.0

Cash and cash equivalents

114.1

203.7

Total

365.9

440.3

 

 

 

TOTAL

515.4

580.3

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

EQUITY

 

 

 

 

 

EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF

THE PARENT COMPANY

 

 

Share capital

14.6

14.6

Share premium reserve

0.0

32.4

Legal reserve

2.9

20.5

Invested free equity reserve

56.6

5.8

Translation difference

-18.2

-22.4

Retained earnings

120.2

152.5

Total

176.0

203.4

Minority interest

8.0

7.7

Total

184.0

211.1

 

 

 

LIABILITIES

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

Interest bearing non-current liabilities

101.3

100.8

Pension obligations

7.4

6.7

Deferred tax liability

1.7

4.7

Other non-current liabilities

2.3

5.0

Total

112.7

117.2

 

 

 

CURRENT LIABILITIES

 

 

Amortisations of interest bearing non-current

liabilities

19.8

20.5

Interest bearing current liabilities

1.7

1.2

Provisions

8.3

5.8

Project advances

66.0

73.6

Accounts payable

21.5

21.8

Other current liabilities

29.3

43.0

Current tax payable

4.2

3.6

Accrued expenses and deferred income

68.0

82.5

Total

218.8

252.0

 

 

 

TOTAL

515.4

580.3

 

STATEMENT OF CASH FLOWS

EUR million

10-12/

2009

10-12/

2008

1-12/

2009

1-12/

2008

 

 

 

 

 

FROM OPERATING ACTIVITIES

 

 

 

 

Net profit for the period

1.4

20.3

8.0

72.6

Expenses from share-based incentive

programmes

0.2

0.4

1.2

1.2

Depreciation and value decrease

2.0

2.7

8.2

9.1

Gain on sale of fixed assets

0.0

-6.3

0.0

-6.3

Share of associated companies' results

0.8

0.6

0.2

-1.6

Financial income and expenses

-0.5

-0.1

-0.8

-2.5

Income taxes

-0.2

6.6

4.4

30.6

Change in work in progress

7.7

12.3

-9.5

-4.8

Change in accounts and other receivables

8.3

3.9

18.3

1.9

Change in advances received

6.8

2.5

-7.6

-23.7

Change in payables and other liabilities

-0.1

-5.9

-16.9

7.4

Received financial income

1.8

2.2

5.0

6.2

Paid financial expenses

-2.7

-1.4

-5.7

-3.0

Paid income taxes

0.8

-5.8

-15.2

-30.5

 

 

 

 

 

Total from operating activities

26.3

32.0

-10.4

56.6

 

 

 

 

 

CAPITAL EXPENDITURE

 

 

 

 

Investments in shares in subsidiaries

 

 

 

 

deducted with cash acquired

-0.4

-3.4

-10.6

-8.7

Investments in other shares

-0.2

0.0

-0.2

0.0

Investments in fixed assets

-0.9

-2.9

-4.7

-10.7

Sales of shares in associated companies

0.0

6.9

0.0

6.9

Sales of other shares

0.0

-0.3

0.0

0.4

Sales of fixed assets

-0.1

0.1

0.3

1.2

 

 

 

 

 

Capital expenditure total, net

-1.6

0.4

-15.2

-10.9

 

 

 

 

 

Net cash before financing

24.7

32.4

-25.6

45.7

 

 

 

 

 

FINANCING

 

 

 

 

New loans

0.0

97.7

20.0

118.2

Repayments of loans

-9.4

-0.8

-20.5

-2.6

Change in current financing

-0.5

-7.6

0.7

-3.7

Dividends

-0.3

0.0

-39.0

-39.1

Acquisitions of own shares

0.0

0.0

-1.9

-5.9

Share subscription

0.3

0.4

0.4

1.2

 

 

 

 

 

Net cash from financing

-9.9

89.7

-40.3

68.1

 

 

 

 

 

Change in cash and cash equivalents and

in other liquid assets

14.8

122.1

-65.9

113.8

 

 

 

 

 

Cash and cash equivalents and other liquid

assets at the beginning of the period

128.9

88.1

203.7

98.7

 

 

 

 

 

Change in the fair value of financial assets

-0.5

0.0

0.1

0.0

Impact of translation differences in

exchange rates

-1.2

-6.5

4.1

-8.8

 

 

 

 

 

Cash and cash equivalents and other liquid

assets 31 December

142.0

203.7

142.0

203.7

 

 

 

 

 

Financial assets at fair value through

profit and loss

27.9

0.0

27.9

0.0

Cash and cash equivalents

114.1

203.7

114.1

203.7

 

 

 

 

 

Cash and cash equivalents and other liquid

assets

142.0

203.7

142.0

203.7

 

CHANGES IN EQUITY 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EUR million

Share

cap-

ital

Share

pre-

mium

re-

serve

Legal

re-

serve

Inves-

ted

free

equity

re-

serve

Trans-

lation

differ-

ences

Re-

tained

earn-

ings

Total

Minor-

ity

inter-

est

Total

equity

 

 

 

 

 

 

 

 

 

 

Equity

1 Oct. 2008

14.6

32.4

20.2

5.4

-16.0

132.5

189.1

7.4

196.5

 

 

 

 

 

 

 

 

 

 

Shares sub-

scribed with

stock options

 

 

 

0.4

 

0.0

0.4

 

0.4

Payment of

dividend

 

 

 

 

 

0.0

0.0

 

0.0

Acquisition

of own shares

 

 

 

 

 

0.0

0.0

 

0.0

Transfer, re-

tained earnings

 

 

0.3

 

 

-0.3

0.0

 

0.0

Expenses from

share-based

incentive

programmes

 

 

 

 

 

0.4

0.4

 

0.4

Comprehensive

income for

the period

 

 

 

 

-6.4

19.8

13.4

0.4

13.8

Changes for

the period

0.0

0.0

0.3

0.4

-6.4

19.9

14.2

0.4

14.6

 

 

 

 

 

 

 

 

 

 

Equity

31 Dec. 2008

14.6

32.4

20.5

5.8

-22.4

152.4

203.4

7.7

211.1

 

 

 

 

 

 

 

 

 

 

Equity

1 Jan. 2008

14.6

32.4

19.5

4.6

-13.9

125.4

182.6

6.9

189.5

 

 

 

 

 

 

 

 

 

 

Shares sub-

scribed with

stock options

 

 

 

1.2

 

 

1.2

 

1.2

Payment of

dividend

 

 

 

 

 

-38.0

-38.0

-1.0

-39.0

Acquisition

of own shares

 

 

 

 

 

-5.9

-5.9

 

-5.9

Transfer, re-

tained earnings

 

 

1.0

 

 

-1.0

0.0

 

0.0

Expenses from

share-based

incentive

programmes

 

 

 

 

 

1.2

1.2

 

1.2

Minority change

 

 

 

 

 

-0.1

-0.1

0.1

0.0

Comprehensive

income for

the period

 

 

 

 

-8.5

70.8

62.3

1.7

64.1

Changes for

the period

0.0

0.0

1.0

1.2

-8.5

27.0

20.7

0.8

21.6

 

 

 

 

 

 

 

 

 

 

Equity

31 Dec. 2008

14.6

32.4

20.5

5.8

-22.4

152.5

203.4

7.7

211.1

 

 

 

 

 

 

 

 

 

 

Equity

1 Oct. 2009

14.6

0.0

2.9

56.3

-20.5

118.8

172.0

7.6

179.5

 

 

 

 

 

 

 

 

 

 

Shares sub-

scribed with

stock options

 

 

 

0.3

 

 

0.3

 

0.3

Payment of

dividend

 

 

 

 

 

 

0.0

0.1

0.1

Acquisition

of own shares

 

 

 

 

 

 

0.0

 

0.0

Transfer to

invested free

equity reserve

 

 

 

 

 

 

0.0

 

0.0

Transfer, re-

tained earnings

 

 

 

 

 

 

0.0

 

0.0

Expenses from

share-based

incentive

programmes

 

 

 

 

 

0.2

0.2

 

0.2

Minority change

 

 

 

 

 

0.1

0.1

 

0.1

Comprehensive

income for the

period

 

 

 

 

2.2

1.0

3.2

0.4

3.6

Changes for

the period

0.0

0.0

0.0

0.3

2.2

1.3

3.8

0.5

4.3

 

 

 

 

 

 

 

 

 

 

Equity

31 Dec. 2009

14.6

0.0

2.9

56.6

-18.2

120.2

176.0

8.0

184.0

 

 

 

 

 

 

 

 

 

 

Equity

1 Jan. 2009

14.6

32.4

20.5

5.8

-22.4

152.5

203.4

7.7

211.1

 

 

 

 

 

 

 

 

 

 

Shares sub-

scribed with

stock options

 

 

 

0.4

 

 

0.4

 

0.4

Payment of

dividend

 

 

 

 

 

-37.9

-37.9

-1.1

-39.0

Acquisition

of own shares

 

 

 

 

 

-1.9

-1.9

 

-1.9

Transfer to

invested free

equity reserve

 

-32.4

-18.0

50.4

 

 

0.0

 

0.0

Transfer, re-

tained earnings

 

 

0.3

 

 

-0.3

0.0

 

0.0

Expenses from

share-based

incentive

programmes

 

 

 

 

 

1.2

1.2

 

1.2

Minority change

 

 

 

 

 

0.1

0.1

-0.1

0.0

Comprehensive

income for the

period

 

 

 

 

4.2

6.5

10.7

1.5

12.2

Changes for

the period

0.0

-32.4

-17.7

50.8

4.2

-32.3

-27.4

0.3

-27.1

 

 

 

 

 

 

 

 

 

 

Equity

31 Dec. 2009

14.6

0.0

2.8

56.6

-18.2

120.2

176.0

8.0

184.0

 

PROFITABILITY AND OTHER KEY FIGURES

10-12/

2009

10-12/

2008

1-12/

2009

1-12/

2008

 

 

 

 

 

Return on investment, %

 

 

5.3

45.4

 

 

 

 

 

Return on equity, %

 

 

4.1

38.7

 

 

 

 

 

Equity ratio, %

 

 

40.9

41.7

 

 

 

 

 

Equity/assets ratio, %

 

 

35.7

36.4

 

 

 

 

 

Net debt/equity ratio (gearing), %

 

 

-10.5

-38.5

 

 

 

 

 

Net debt, EUR million

 

 

-19.3

-81.2

 

 

 

 

 

Current ratio

 

 

1.7

1.7

 

 

 

 

 

Consulting and engineering, EUR million

 

 

483.6

538.6

EPC, EUR million

 

 

2.1

0.5

Order stock total, EUR million

 

 

485.7

539.1

 

 

 

 

 

Capital expenditure, operating

 

 

 

 

EUR million

1.0

2.9

4.8

10.7

Proportion of net sales, %

0.6

1.4

0.7

1.3

 

 

 

 

 

Capital expenditure in shares,

 

 

 

 

EUR million

0.8

3.6

5.0

8.9

Proportion of net sales, %

0.5

1.7

0.7

1.1

 

 

 

 

 

Personnel in group companies on average

 

 

7052

7702

Personnel in associated companies on average

 

 

142

267

 

 

 

 

 

Personnel in group companies at year-end

 

 

6530

7924

Personnel in associated companies at year-end

 

 

141

142

 

KEY FIGURES FOR THE SHARES

10-12/

2009

10-12/

2008

1-12/

2009

1-12/

2008

 

 

 

 

 

Earnings/share, EUR

0.02

0.34

0.11

1.21

  Diluted

0.02

0.34

0.11

1.19

 

 

 

 

 

Shareholders' equity/share, EUR

 

 

2.98

3.45

 

 

 

 

 

Dividend, EUR million

 

 

5.9 1)

38.0

 

 

 

 

 

Dividend/share, EUR

 

 

0.10 1)

0.65

 

 

 

 

 

Dividend/earnings, %

 

 

90.9 1)

53.7

 

 

 

 

 

Effective return on dividend, %

 

 

0.9 1)

8.3

 

 

 

 

 

Price/earnings multiple

 

 

101.5

6.5

 

 

 

 

 

Issue-adjusted trading prices, EUR

 

 

 

 

Average trading price

 

 

9.78

13.86

Highest trading price

 

 

13.17

18.34

Lowest trading price

 

 

7.55

6.90

Closing price at year-end

 

 

11.17

7.82

 

 

 

 

 

Total market value of shares,

 

 

 

 

outstanding shares, EUR million

 

 

654.5

457.3

own shares, EUR million

 

 

4.2

3.1

 

 

 

 

 

Trading volume of shares

 

 

 

 

Shares, 1000

 

 

20 556

17 420

Proportion of total volume, %

 

 

35.1

29.8

 

 

 

 

 

Issue-adjusted number of outstanding

shares, 1000

 

 

 

 

On average

 

 

58 509

58 540

At year-end

 

 

58 971

58 879

 

 

 

 

 

1) Board of Directors' proposal.

 

 

 

 

 

CHANGE IN INTANGIBLE ASSETS

EUR million

10-12/

2009

10-12/

2008

1-12/

2009

1-12/

2008

 

 

 

 

 

Book value at beginning of period

5.3

6.4

6.2

6.6

Acquired companies

0.0

0.7

0

0.7

Capital expenditure

0.5

-0.4

1.2

1.4

Decreases

0.0

0.0

0.0

0.0

Depreciation

-0.5

-0.7

-2.2

-2.5

Translation difference

0.1

0.2

0.2

0.0

Book value at end of period

5.4

6.2

5.4

6.2

 

 

 

 

 

Change in tangible assets

 

 

 

 

 

 

 

 

 

Book value at beginning of period

17.3

18.6

18.8

17.8

Acquired companies

0.0

0.0

0.0

0.7

Capital expenditure

0.3

3.3

3.4

9.3

Decreases

0.0

-1.1

-0.4

-2.2

Depreciation

-1.5

-2.0

-6.0

-6.6

Translation difference

0.5

0.0

0.8

-0.2

Book value at end of period

16.6

18.8

16.6

18.8

 

CONTINGENT LIABILITIES

EUR million

1-12/

2009

1-12/

2008

 

 

 

Other obligations

 

 

Pledged assets

2.0

0.1

Project and other guarantees

55.0

45.2

Claims and litigations

3.0

0.0

Total

60.0

45.3

 

 

 

For other parties

 

 

Pledged assets

0.0

0.1

Other obligations

0.1

0.1

Total

0.1

0.2

 

 

 

Rent and lease obligations

111.0

118.2

 

 

 

 

 

 

 

Project guarantees are normal undertakings related to project business, for example bid bonds or performance guarantees.

 

Claims and litigations: Given the nature of Pöyry's operations, claims are made against Group companies from time to time based on several grounds. These claims lead seldom to litigation. The risk related to existing claims is considered immaterial on Group level taken into consideration the size of Pöyry's operations, the grounds and amounts of the claims, the applicable contractual terms, the issued expert opinions and the Group's insurance cover. Respectively, Group companies at times need to raise claims against clients and sub-contractors. During the financial year one material tax claim has been raised against a Group company, which relates to events prior to Pöyry's ownership in the company. According to expert opinions it is unlikely that the claim would lead to material consequences to Pöyry on Group level.

 

 

 

 

 

 

 

RELATED PARTY TRANSACTIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

To the related parties of Pöyry Group belong the subsidiaries

and the associated companies, the Board of Directors, the

President and CEO, the Deputy to the President and CEO and

the members of the Group Executive Committee. Furthermore

Corbis S.A. belongs to the related parties.

 

 

 

 

 

 

 

 

 

Employee benefits for the Board of Directors, the President

and CEO, the Deputy to the President and CEO and the members

of the Group Executive Committee

 

 

Salaries, bonuses and other short-term employee benefits

 

3.4

4.9

 

 

 

 

 

 

 

Shareholding and option rights of related parties, option

programme 2004

 

 

The members of the Board of Directors, the President and CEO,

the Deputy to the President and CEO and the members of the

Group Executive Committee owned on 31 December 2009 a total

of 179 676 shares and 108 227 stock options (on 31 December

2008 a total of 167 437 shares and 150 679 stock options

2004). With the stock options the shareholding can be

increased by 432 908 shares equalling 0.7 per cent of the

total number of shares and votes.

 

 

 

 

 

 

 

 

 

Performance share plan 2008-2010

 

 

 

 

 

 

In December 2007 the Board of Directors of Pöyry PLC approved

a share-based incentive plan for key personnel. The plan

includes three earning periods which are the calendar

years 2008, 2009 and 2010.

 

 

 

 

 

 

 

 

 

The option programme 2004 and the performance share plan

2008-2010 are described in the Board of Directors' report. 

 

 

 

 

 

 

 

 

 

Own shares

 

 

 

 

 

 

As at end 2009 Pöyry PLC held 377 157 own shares corresponding to 0.6 per cent of the total number of shares.

 

 

 

 

 

 

 

 

 

Transactions with the associated companies

 

 

 

 

 

The transactions with the associated companies are determined

on an arm's length basis.

 

 

 

 

 

 

 

 

 

Sales to associated companies

 

 

 

 

0.1

0.3

Loans receivable from associated companies

 

 

 

0.1

0.1

Accounts receivable from associated companies

 

 

0.0

0.0

 

OPERATING SEGMENTS

EUR million

1-12/

2009

 

1-12/

2008

 

 

 

 

 

 

NET SALES

 

 

 

 

Energy

215.6

 

241.3

 

Forest Industry

175.8

 

294.5

 

Transportation

118.5

 

105.5

 

Water & Environment

86.5

 

87.6

 

Construction Services

79.0

 

92.8

 

Unallocated

-1.9

 

0.0

 

Total

673.5

 

821.7

 

 

 

 

 

 

OPERATING PROFIT AND NET PROFIT FOR

THE PERIOD

 

 

 

 

EUR million, proportion of net sales %

 

%

 

%

 

 

 

 

 

Energy

9.1

4.2

32.0

13.2

Forest Industry

-14.7

-8.4

50.8

17.2

Transportation

9.4

7.9

9.2

8.7

Water & Environment

4.9

5.7

4.2

4.8

Construction Services

6.5

8.3

9.9

10.7

Unallocated

-3.6

 

-5.5

 

OPERATING PROFIT TOTAL

11.6

1.7

100.6

12.2

Financial income and expenses

0.8

 

2.6

 

PROFIT BEFORE TAXES

12.4

 

103.2

 

Income taxes

-4.4

 

-30.6

 

NET PROFIT FOR THE PERIOD

8.0

 

72.6

 

Attributable to:

 

 

 

 

Equity holders of the parent company

6.5

 

70.8

 

Minority interest

1.5

 

1.8

 

 

 

 

 

 

ORDER STOCK

 

 

 

 

Energy

181.9

 

196.4

 

Forest Industry

45.3

 

86.3

 

Transportation

158.4

 

130.9

 

Water & Environment

62.3

 

76.8

 

Construction Services

37.5

 

48.3

 

Unallocated

0.3

 

0.4

 

Total

485.7

 

539.1

 

 

 

 

 

 

Consulting and engineering

483.6

 

538.6

 

EPC

2.1

 

0.5

 

Total

485.7

 

539.1

 

 

 

 

 

 

GEOGRAPHICAL SEGMENTS

 

 

 

 

The Nordic countries

194.4

 

234.3

 

Other Europe

323.7

 

363.1

 

Asia

54.7

 

72.6

 

North America

20.0

 

27.7

 

South America

50.3

 

89.5

 

Other

30.4

 

34.5

 

Total

673.5

 

821.7

 

 

 

 

 

 

PERSONNEL

 

 

 

 

Energy

1 621

 

1 870

 

Forest Industry

1 887

 

2 917

 

Transportation

1 162

 

1 073

 

Water & Environment

908

 

976

 

Construction Services

831

 

971

 

Unallocated

121

 

117

 

Total

6 530

 

7 924

 

 

OPERATING SEGMENTS

EUR million

1-3/09

4-6/09

7-9/09

10-12/09

 

 

 

 

 

NET SALES

 

 

 

 

Energy

59.5

52.9

48.7

54.5

Forest Industry

53.8

48.7

35.2

38.1

Transportation

30.8

29.0

28.5

30.2

Water & Environment

21.0

22.0

20.6

22.9

Construction Services

22.2

20.7

16.8

19.3

Unallocated

0.5

0.7

0.4

-3.5

Total

187.8

174.0

150.2

161.5

 

 

 

 

 

OPERATING PROFIT

 

 

 

 

Energy

4.1

2.5

0.6

1.9

Forest Industry

-2.8

-2.2

-4.0

-5.7

Transportation

2.5

2.0

2.6

2.3

Water & Environment

0.8

1.5

1.1

1.5

Construction Services

1.7

1.6

1.4

1.8

Unallocated

-1.1

-0.8

-0.6

-1.1

OPERATING PROFIT TOTAL

5.2

4.6

1.1

0.7

Financial income and expenses

1.1

-0.5

-0.3

0.5

PROFIT BEFORE TAXES

6.3

4.1

0.8

1.2

Income taxes

-2.0

-1.8

-0.8

0.2

NET PROFIT FOR THE PERIOD

4.3

2.3

0.0

1.4

Attributable to:

 

 

 

 

Equity holders of the parent company

3.8

2.1

-0.4

1.0

Minority interest

0.5

0.2

0.4

0.4

 

 

 

 

 

OPERATING PROFIT %

 

 

 

 

Energy

6.9

4.7

1.2

3.5

Forest Industry

-5.2

-4.5

-11.4

-15.0

Transportation

8.0

6.9

9.1

7.6

Water & Environment

3.8

6.8

5.3

6.6

Construction Services

7.5

7.7

8.3

9.3

Group

2.8

2.6

0.7

0.4

 

 

 

 

 

ORDER STOCK

 

 

 

 

Energy

195.2

190.9

186.3

181.9

Forest Industry

71.7

63.4

54.4

45.3

Transportation

151.8

157.0

163.1

158.4

Water & Environment

78.8

75.5

69.0

62.3

Construction Services

48.3

46.1

41.0

37.5

Unallocated

0.6

1.2

0.1

0.3

Total

546.4

534.1

513.9

485.7

 

 

 

 

 

Consulting and engineering

539.8

530.7

510.8

483.6

EPC

6.6

3.4

3.1

2.1

Total

546.4

534.1

513.9

485.7

 

OPERATING SEGMENTS

EUR million

1-3/08

4-6/08

7-9/08

10-12/08

 

 

 

 

 

NET SALES

 

 

 

 

Energy

58.1

62.1

56.8

64.3

Forest Industry

70.8

81.9

69.3

72.5

Transportation

23.7

26.5

26.3

29.0

Water & Environment

20.3

21.6

20.3

25.4

Construction Services

22.9

25.4

20.6

23.9

Unallocated

0.4

0.5

0.6

-1.5

Total

196.2

218.0

193.9

213.6

 

 

 

 

 

OPERATING PROFIT

 

 

 

 

Energy

5.6

8.3

6.3

11.8

Forest Industry

11.7

16.9

12.7

9.5

Transportation

2.1

1.4

2.4

3.3

Water & Environment

0.7

1.4

0.3

1.8

Construction Services

2.7

3.4

1.9

1.9

Unallocated

-0.8

-1.4

-1.7

-1.6

OPERATING PROFIT TOTAL

22.0

30.0

21.9

26.7

Financial income and expenses

0.6

0.5

1.3

0.2

PROFIT BEFORE TAXES

22.6

30.5

23.2

26.9

Income taxes

-7.1

-9.4

-7.5

-6.6

NET PROFIT FOR THE PERIOD

15.5

21.1

15.7

20.3

Attributable to:

 

 

 

 

Equity holders of the parent company

15.1

20.5

15.4

19.8

Minority interest

0.4

0.6

0.3

0.5

 

 

 

 

 

OPERATING PROFIT %

 

 

 

 

Energy

9.6

13.4

11.1

18.4

Forest Industry

16.5

20.6

18.3

13.1

Transportation

8.9

5.3

9.1

11.3

Water & Environment

3.4

6.5

1.5

7.3

Construction Services

11.8

13.4

9.2

8.1

OPERATING PROFIT TOTAL

11.2

13.8

11.3

12.5

 

 

 

 

 

ORDER STOCK

 

 

 

 

Energy

205.8

195.8

216.1

196.4

Forest Industry

133.0

123.3

116.3

86.3

Transportation

113.1

114.5

130.3

130.9

Water & Environment

74.7

75.0

78.3

76.8

Construction Services

47.3

46.7

53.1

48.3

Unallocated

0.4

0.4

0.4

0.4

Total

574.3

555.7

594.5

539.1

 

 

 

 

 

Consulting and engineering

568.5

551.5

592.5

538.6

EPC

5.8

4.2

2.0

0.5

Total

574.3

555.7

594.5

539.1

 

ACQUISITIONS

 

 

 

 

 

 

 

 

 

 

 

ACQUISITIONS DURING 2009

Name and business

 

 

 

Acquisition

date

Acquired

interest, %

 

 

 

 

 

 

Aquarius International Consultants Pty Ltd

 

14 May 2009

100

 

 

 

 

 

 

The company is one of Australia's leading

independent offshore engineering and marine

consulting firm and is highly respected in the

offshore oil and gas industry. The company is

based in Perth, Australia, employing ten

persons.

The company has been consolidated into Pöyry as

of 1 May 2009.

 

 

 

 

 

 

 

 

 

ACQUISITIONS DURING 2008

Name and business

 

 

 

 

Acquisition

date

Acquired

interest, %

 

 

 

 

 

 

 

Arket Oy

 

 

 

 

7 May 2008

100

 

 

 

 

 

 

 

The company specialises in architectural design

services for healthcare, office, retail and

industrial buildings. The company is based in

Espoo, Finland employing nine persons.

The company has been merged with Pöyry

Architects Oy.

 

 

 

 

 

 

 

 

 

Geopale Oy

 

 

 

 

12 May 2008

100

 

 

 

 

 

 

 

The company specialises in bedrock core

drillings. The company is based in Jyväskylä,

Finland employing 14 persons.

The  company has been merged with Pöyry

Environment Oy, which has been merged with Pöyry

Finland Oy.

 

 

 

 

 

 

 

 

 

Consilier Construct S.R.L.

 

 

 

 

27 May 2008

100

 

 

 

 

 

 

 

The company focuses on the transportation market

in particular on the road and rail sector. The

company is based in Bucharest in Romania and has

a staff of 220.

 

 

 

 

 

 

 

 

 

ETT Proyectos S.L.

 

 

 

 

1 October 2008

100

 

 

 

 

 

 

 

The company provides engineering and consultancy

services in the rail sector, including both

conventional rail systems as well as high-speed

rail systems. The company is based in Madrid,

Spain and has a staff of 45.

 

 

 

 

 

 

 

 

 

Kündig & Partner AG

 

 

 

 

3 December 2008

100

 

 

 

 

 

 

 

The company is specialised in HVAC building

services, and brings in a focus on complex and

sophisticated sanitary designs of hospitals and

laboratory facilities. The company is based in

Bern, Switzerland and has a staff of 10.

The company has been merged with Pöyry Infra AG.

 

 

 

 

 

 

 

 

 

Shanghai Kang Dao Construction Company Ltd 

 

2008

100

 

 

 

 

 

1 March 2009

 

The company is primarily engaged in project

management for industrial and commercial real

estate development and construction projects.

The company is based in Shanghai, China and has

a staff of 27.

The acquisition was completed in March 2009 and

included in Pöyry Group from the beginning of

March 2009.

 

 

 

Aggregate figures for the above acquisitions

EUR million 

 

2009

2008

 

 

 

 

 

 

Purchase price

 

 

 

 

 

Fixed price, paid

 

 

 

4.2

8.8

Earnout estimate

 

 

 

0.0

0.2

Fees

 

 

 

0.0

0.1

Total

 

 

 

4.2

9.1

 

 

 

 

 

 

Price allocation

 

 

 

0.2

4.7

Equity

 

 

 

0.0

0.0

Fair value adjustments:

 

 

 

 

 

Client relationship

 

 

 

0.0

0.0

Order stock

 

 

 

0.0

0.0

Total

 

 

 

0.2

4.7

Remaining = goodwill

 

 

 

4.0

4.4

 

 

 

 

 

 

Market leadership, experienced management and staff,

and earnings expectations are factors contributing to

the amount booked as goodwill.

 

 

 

 

 

 

 

 

Impact on the Pöyry Group's income statement 

 

 

 

 

 

 

 

 

 

Operating profit from acquisition date to

31 December 2009/2008

 

0.0

 

1.8

Sales volume on a 12-month calendar year basis

 

3.0

17.4

Operating profit on 12-month calendar year basis

 

0.7

2.4

 

 

 

 

 

 

Impact on the Pöyry Group's number of personnel

 

37

328

Impact on the Pöyry Group's assets and liabilities

EUR million

 

 

 

 

2009

 

 

2008

 

 

 

Book

values

at

acqui-

sition

date

Fair

value

adjust-

ments

Adjus-

ted

IFRS

values

Book

values

at

acqui-

sition

date

Fair

value

adjust-

ments

Adjus-

ted

IFRS

values

 

 

 

 

 

 

 

Intangible assets

0.0

0.0

0.0

0.1

 

0.1

Tangible assets

0.0

0.0

0.0

0.8

0.1

0.9

Work in progress

0.0

0.0

0.0

0.9

0.6

1.5

Accounts receivable

0.2

0.0

0.2

4.6

 

4.6

Other receivables

0.0

0.0

0.0

1.6

-0.2

1.4

Cash and cash equivalents

0.2

0.0

0.2

2.5

 

2.5

Assets total

0.4

0.0

0.4

10.5

0.5

11.0

 

 

 

 

 

 

 

Interest bearing liabilities

0.0

 

0.0

0.5

 

0.5

Project advances

0.0

 

0.0

0.0

 

0

Accounts payable

0.0

 

0.0

1.7

 

1.7

Other current liabilities

0.2

0.0

0.2

3.4

0.7

4.1

Liabilities total

0.2

0.0

0.2

5.6

0.7

6.3

 

 

 

 

 

 

 

Net identifiable assets and

liabilities

0.2

0.0

0.2

4.9

-0.2

4.7

 

 

 

 

 

 

 

Total cost of business

combinations

 

 

4.2

 

 

9.1

 

 

 

 

 

 

 

Goodwill

 

 

4.0

 

 

4.4

 

 

 

 

 

 

 

Consideration paid,

satisfied in cash

 

 

4.2

 

 

8.8

Cash acquired

 

 

0.2

 

 

2.5

Net cash outflow

 

 

4.0

 

 

6.3

 

 

 

 

 

 

 

Based on the purchase agreements the companies acquired during the year are consolidated 100% into the Pöyry Group as of the end of the month when acquired.