STOCK EXCHANGE RELEASE 2 Dec 2009
Pöyry PLC announces new vision and realigns its structure
PÖYRY PLC Company Announcement 2 December 2009 at 8.30 a.m.
Pöyry's new vision is to become "the global thought leader in engineering balanced sustainability for a complex world". The company intends to be an agenda setter in this respect in the sectors it serves.
Pöyry will realign its business structure to better enable the new vision. At the same time, Pöyry announces its management team effective 1 January 2010.
The new vision is driven by the major challenges that Pöyry's clients will face. Urbanization and population growth, 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 created by these drivers and therefore directs its service offerings and business structure accordingly. Pöyry targets at accelerating profitable growth organically and through acquisitions aligned with its vision.
Pöyry's new business groups and management
Richard Pinnock, currently President of the Energy business group, has been appointed Executive Vice President, Group Strategic Growth. He will be responsible for enhancing Pöyry's world-wide capabilities to develop and execute large projects and scopes where Pöyry sees a major growth potential, as well as for strategy development, including mergers and acquisitions.
Energy business group: The Energy business group's offerings will cover diverse energy-related projects and technical advisory services. The business group focuses in the areas of hydropower, renewable energy, thermal power, oil and gas, nuclear energy and transmission and distribution. Future focus is on projects and technologies which help to improve energy efficiency and mitigate environmental impacts in a sustainable way. Ari Asikainen, currently President of the Construction Services business group, has been appointed President of the Energy business group.
Industry business group: The current Forest Industry business group will be renamed the Industry business group. The business group will maintain its strong focus on forest industry to ensure its global market leadership in the pulp and paper sector. In addition, it will accelerate its expansion to other areas of industrial processes and facilities such as chemicals. The Industry business group will invest in the development of a more complete offering covering resources such as biomass, biofuels and biomass-based chemicals. Martin Kuzaj, currently President of the Forest Industry business group, has been appointed President of the Industry business group.
Urban and Mobility business group: The Transportation and Construction Services business groups will be merged into the Urban and Mobility business group. With this integration Pöyry strengthens its ability to respond to the increasing need for solutions driven by population growth and urbanisation. This new business group will continue to operate in the areas of real estate development, construction management, rail, urban mass transportation and motorways. It will offer clients leading-edge sustainable solutions from planning through to project realisation. Synergetic benefits in areas such as urban development, construction management and building design will be exploited using the global platforms of this new merged business group. Andy Goodwin, currently President of the Transportation business group, has been appointed President of the Urban and Mobility business group.
Water & Environment business group: The Water & Environment business group will spearhead Pöyry's vision to become a leading service provider for the entire water cycle and to mitigate environmental degradation. The Water & Environment business group will focus on water supply and sanitation, water resources management, geosciences, and environmental services. Bernd Kordes will continue as President of this business group.
Management Consulting business group: Pöyry will form the Management Consulting business group by merging the existing management consulting businesses in the Forest Industry and Energy business groups. They currently employ around 450 management consultants in total. The target is to double the size of the business in about five years and to expand management consulting services into areas that have synergies with the rest of the Pöyry Group. The President of the business group will be announced later. In the interim, Bernd Kordes will assume the role besides his other duties.
Anne Viitala has been appointed Executive Vice President, Legal and Commercial. She continues to be responsible for legal affairs and risk management, but will also take a leading position in Group level commercial transactions.
The new business groups and the appointments will come into effect as of 1 January 2010. Pöyry's periodic reporting for Q1 2010 will be prepared and presented based on the new business group structure. Pro forma figures covering previous years will be submitted by the end of March 2010.
After these appointments, Pöyry's Executive Committee members as of 1 January 2010 will be:
- 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
Vision impact on Pöyry offerings and geographical focus
The new vision will drive Pöyry's offerings and the company will sharpen its focus on larger projects, management consulting, cost-effectiveness in detail engineering and core geographical markets.
Large projects: Pöyry has over the past several years been successful in executing large EPCM (engineering, procurement and construction management) projects predominantly in pulp and paper and various energy areas. Additionally, medium size EPC (engineering, procurement and construction) projects have been successfully executed in energy. Pöyry is well-positioned to boost revenue and profitability by growing its involvement in projects in the EUR 1 billion to 2 billion investment range and above with a larger Pöyry share and scope. The focus will primarily be on EPCM projects, but Pöyry will gradually expand its EPC projects where value can be added to our clients, and risks effectively managed in line with the company's financial and other capabilities. The company will differentiate through offering "packaged" total solutions, integrating project management, construction and procurement management and management of balanced sustainability with cost competitive engineering services. Pöyry will invest in further developing the necessary competences and tools to enable this strategic growth. Targeted acquisitions may also be used to accelerate the capture of these competences and skills.
Management consulting services: Pöyry has a strong position in providing management consulting services to energy and forest industry clients. Clients will face challenges to balance complex and controversial aspects in their operations and this will increase the demand for advisory services especially in strategy, public policy, sustainability, product markets, M&A and performance improvement. Bringing the management consulting activity together into one business group will strengthen the value of the Pöyry brand in the field of consultancy, create critical mass and attract more talent into this growing business.
Geographic focus: Pöyry has also revisited its geographical focus. The company intends to offer its full package of services to establish a strong, long-term position in countries that will offer the best growth opportunities. These core markets will include selected emerging markets, especially Brazil, Russia and Asia. Pöyry will continue to consolidate and strengthen its position in its traditional core markets such as Central and Southern Europe, in a combination that optimises profitability and growth. In the future, Pöyry will add countries to its core markets where it sees opportunities to increase its offering.
Accelerated growth and profitability
Pöyry targets an average annual long term growth of 15 per cent. The Group repeats its earlier operating profit margin target for each business group of minimum 8 per cent in the medium term and 10 per cent in the long term, which it will achieve assuming relatively fast recovery of the global economy from the present recession. Key components in improving profitability are the move towards higher value activities such as project management and management consulting, and increased efficiency leading to lower relative fixed costs.
"We aim to be one of the world's leading consulting engineering companies by 2020. Selected new business sectors, stronger focus, management consulting, larger projects and excellence in design and execution are in the forefront in achieving our growth and profitability targets. As a thought-leader and agenda setter, and through investments in developing our future capabilities, we will be able to offer very exciting professional opportunities to both current and future staff. Added with exceptional customer intimacy, this vision will position us well in the changing market and respond to the clients' increasing needs regarding sustainability", comments Heikki Malinen, President and CEO, Pöyry PLC.
Pöyry is a global expert in consulting and engineering. We offer our clients in-depth industry expertise, innovative solutions and lifecycle engagement. Our knowledge extends across hydropower, oil and gas, power and heat, renewable energy, pulp and paper industry, chemical process industry, transportation, water and environment, and construction services. We have about 7000 experts in 49 countries.
President and CEO
Deputy to President and CEO
Additional information by:
Heikki Malinen, President and CEO, Pöyry PLC
Tel. +358 10 33 21307
Teuvo Salminen, Deputy to President and CEO, Pöyry PLC
Tel. +358 10 33 22872
A press conference in Finnish will be held on Wednesday, 2 December at 12.00 Finnish time at Hotel Klaus K's Ahjo conference room at Bulevardi 2/4, Helsinki. The conference will be hosted by Heikki Malinen, President and CEO of Pöyry, who will present the new vision and the new business structure.
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