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STOCK EXCHANGE RELEASE 9 Feb 2012

Pöyry PLC's notice concerning annual accounts for 2011

PÖYRY PLC          Financial Statement Release 9 February 2012 at 8:30 a.m.

SOLID ORDER STOCK FOR 2012 - PUBLIC SECTOR BURDENS 2011 RESULT

KEY FIGURES

Pöyry Group 10-12/
2011
10-12/
2010
Change,
%
1-12/
2011
1-12/
2010
Change,
%
Order stock at end of period, EUR million 694.4 526.2 32.0 694.4 526.2 32.0
Net sales total, EUR million 226.9 186.0 22.0 796.1 681.6 16.8
Operating profit excl.
restructuring costs,
EUR million
6.3 13.5 -53.3 30.4 17.3 75.7
Operating margin excluding
restructuring costs, %
2.8 7.3 3.8 2.5
Operating profit,
EUR million
-0.5 6.1 n.a. 20.0 5.8 n.a.
Operating margin, % -0.2 3.3 2.5 0.9
Profit before taxes,
EUR million
-0.8 6.4 n.a. 17.1 4.3 n.a.
Earnings per share, basic, EUR -0.03 0.08 n.a. 0.13 0.00 n.a.
Earnings per share, diluted, EUR -0.03 0.08 n.a. 0.13 0.00 n.a.
Gearing, % - - 28.2 3.5
Return on investment,  % (R12M) - - 7.4 2.6
Dividend per share (*BoD proposal) - - 0.20 0.10 100.0
Dividend pay-out ratio, % (*BoD proposal) - - 152.6 n.a.
Average number of personnel during period, calculated as full time equivalents (FTE) - - 6,864 6,611 3.8

All figures and sums have  been  rounded  off  from  the  exact  figures  which  may  lead  to  minor  discrepancies  upon  addition or subtraction.

JANUARY-DECEMBER 2011 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the previous year.

- The Group's order stock totalled EUR 694.4 million (526.2) at the end of 2011. The order stock includes a major EPC contract announced in the first quarter of 2011.
- Consolidated net sales in 2011 increased by 16.8 per cent compared with the year before to EUR 796.1 million (681.6).
- Operating profit excluding restructuring costs was EUR 30.4 million (17.3) corresponding to 3.8 per cent (2.5) of sales.
- Compared with the year before, operating profit improved significantly in the Industry and Management Consulting business groups as a result of improving activity and successful restructuring measures. Operating profit also improved in the Energy business group despite start-up costs caused by the integration of Pöyry SwedPower.
- The operational excellence programme in Finland was concluded as planned in 2011. The targeted annualised operating profit improvement of EUR 15 million was achieved partly through the operational excellence programme and partly through increased activity.  
- In 2011 the operational excellence programme was launched in Germany. During the year the efficiency improvement measures resulted in restructuring costs of approximately EUR 5 million of which, the remaining approximately EUR 4 million was recognised in the fourth quarter 2011 result. The targeted annualised savings, approximately EUR 6.5 million, are expected to be achieved by the end of 2012.
- Balance sheet remains strong. The inclusion of the Vantaa Head Office building in the balance sheet in the second quarter of 2011 increased gearing which now stands at 28.2 per cent (3.5).
- The accounts receivable includes receivables, which relate to certain public sector infrastructure projects in Venezuela. While the receivables are undisputed, there continues to be uncertainty about the timing of the payments, which has been reflected in the valuation of the receivables. The current net value of the receivables is approximately EUR 24.1 million after provisions. The increase in provision was EUR 4.3 million in 2011.
- Transaction whereby Pöyry PLC acquired parts of the engineering consulting business of Vattenfall Power Consultant AB was completed in July 2011.
- The Oil and gas business was divested in June 2011.
- In October 2011, Pöyry announced that it will increase focus on emerging markets and realign structure by merging Water & Environment and Urban & Mobility business groups into new Urban business group. Pro forma figures regarding the new business group structure are included in the tables to the complete Financial Statement Release.

PROPOSED DIVIDEND
- Pöyry   Group's   parent   company   Pöyry   PLC's   net   profit   for   2011   was   EUR 1,870,314.30  and  retained  earnings  EUR  92,888,018.60,  so  the  total  amount  of distributable earnings was EUR 94,758,332.90.
-  The Board of Directors of Pöyry PLC proposes to the Annual General Meeting on 8 March 2012 that a dividend of EUR 0.20 (0.10) per share be paid for the year 2011.
- The number of outstanding shares is 59,075,665 and the total amount of dividends thus EUR 11,815,133.00.
- The Board of Directors proposes that the dividend be paid on 20 March 2012.

OUTLOOK FOR 2012
Pöyry's businesses are predominantly driven by clients' new capital investments and most of the businesses are also inherently late in the cycle. It is difficult to predict the timing of clients' new investment decisions and project start-ups. The uncertainty around the general economic outlook is high, which may impact investment activity in business segments that are relevant to Pöyry's operations.

Based on the current strong order stock and outlook for new orders, the Group's net sales in 2012 are expected to remain stable compared with 2011. The comparable operating profit for 2012 is expected to improve clearly from the operating profit, excluding restructuring costs, in 2011.

Outlook concerning business groups:
The net sales in the Industry and Management Consulting business groups are expected to improve and in the Energy and Urban business groups to remain stable compared with 2011. Comparable operating profit in the Energy business group is expected to improve clearly, in the Industry business group to improve, in the Urban business group to improve significantly and in the Management Consulting business group to remain stable compared with 2011.

CORPORATE GOVERNANCE STATEMENT
Pöyry will publish its Corporate Governance Statement 2011 in week 7 together with the Annual Report 2011 that contains the report by the board of directors. The statement will be published separately from the Report of the Board of Directors and it will be available after publishing on the company's website at www.poyry.com.

MATERIALS TO THE AGM
The financial statements, the report by the Board of Directors, the corporate governance statement as well as other documents presented to the Annual General Meeting will be available on the company's website at www.poyry.com on 16 February 2012 at the latest.

COMMENTS FROM HEIKKI MALINEN, PRESIDENT AND CEO:
"In the beginning of 2012 Pöyry stands on a solid foundation. The good order intake resulted in a high order stock of EUR 694.4 million, which was 32 per cent higher than in 2010. Net sales in 2011 increased by 16.8 per cent to EUR 796.1 million (681.6). Operating profit before restructuring costs, amounted to EUR 30.4 million (17.3) or 3.8 per cent (2.5) of net sales. The balance sheet is strong.

Compared with the year before, operating profit improved significantly in the Industry and Management Consulting business groups. The Industry business group started the year 2011 with signing a major EPC contract with MWV Rigesa, Brazil. The project is now in the middle of implementation. I am pleased to report that Pöyry has won the key pulp and paper projects in Latin America in 2011. The business group also continued its efforts to expand into the minerals processing sector. Overall, the Industry business group achieved a good turnaround after a tough 2009-2010. In the Management Consulting business group implementation of a new business model, successful recruitment of skilled professionals and active sales efforts resulted in a clear turn-around.

Operating profit also improved in the Energy business group for which 2011 was a year of transition. In early June we sold our oil and gas business and in July we finalised the acquisition of parts of the engineering consulting business of Vattenfall Power Consultant AB. Despite start-up costs caused by the integration of the new company Pöyry SwedPower, Energy business group improved its relative profitability.

In the public sector the business environment became more challenging. Growing austerity measures started to negatively impact clients' spending on public sector projects and payment behaviour. Competition for new projects grew clearly. Our financial performance in this business area failed to meet our expectations. As part of the strategic review of the water business, the decision was taken to merge Water & Environment and Urban & Mobility into one business group to improve competitiveness, better capture synergies and improve profitability.

As part of our strategic roadmap we continued to improve the efficiency of our own operations. Our group wide growth enabling initiatives - Large Projects, Sales & Marketing, Way of Working and Thought Leadership - are well underway. Capital investments continue to move from developed to emerging markets. Therefore, Pöyry will further strengthen its presence in Latin America and Asia. During 2011 we started to prepare for taking the next steps on this journey."

This is a summary of the January-December 2011 financial statement release. The complete report is published as an enclosure to this company announcement and is available in full on the company's web site at www.poyry.com. Investors are advised to review the complete financial statement release with tables.

PÖYRY PLC

Additional information from:
Heikki Malinen, President and CEO
tel. +358 10 33 21307
Jukka Pahta, CFO
tel. +358 10 33 26088
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002

INVITATION TO CONFERENCES TODAY 9 FEBRUARY 2012
The January-December 2011 result will be presented by CEO Heikki Malinen and CFO Jukka Pahta at the news conferences today as follows:

- A conference for analysts, investors and press 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 5:00 p.m. Finnish time (EET).

10:00 a.m. EST (New York)
3:00 p.m. GMT (London)
4:00 p.m. CET (Paris)
5:00 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 the following day.

To attend the conference call, please dial

Finland: 0800 914672
USA: +1 646 843 4608
Other countries: +44 (0)20 3003 2666
Conference id: Pöyry

Due to the live webcast, we kindly ask those attending the international conference call and webcast to dial in 5 minutes prior to the start of the event.

Pöyry is a global consulting and engineering company dedicated to balanced sustainability and responsible business. With quality and integrity at our core, we deliver best-in-class management consulting, total solutions, and design and supervision. Our in-depth expertise extends to the fields of energy, industry, transportation, water, environment and real estate. Pöyry has about 7,000 experts and the local office network in about 50 countries. Pöyry's net sales in 2011 were EUR 796 million and the company's shares are quoted on NASDAQ OMX Helsinki. (Pöyry PLC: POY1V).

DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.poyry.com 

 

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