Pöyry - Annual Financial Report

Pöyry PLC: Pöyry PLC's notice concerning annual accounts for 2013

PÖYRY PLC          Financial Statement Release 5 February 2014 at 8:30 a.m.

Pöyry PLC's notice concerning annual accounts for 2013

OPERATING PROFIT IMPROVED, NET SALES DECLINED

KEY FIGURES
                           |10-12/ 2013|10-12/|Change,|1-12/ 2013|1-12/|Change,
 Pöyry Group               |           |  2012|      %|          | 2012|      %
---------------------------+-----------+------+-------+----------+-----+-------
 Order stock at end of     |           |      |       |          |     |
 period, EUR million       |      500.0| 547.7|   -8.7|     500.0|547.7|   -8.7
---------------------------+-----------+------+-------+----------+-----+-------
 Net sales total, EUR      |           |      |       |          |     |
 million                   |      160.6| 190.7|  -15.8|     650.8|775.0|  -16.0
---------------------------+-----------+------+-------+----------+-----+-------
 Operating profit,         |           |      |       |          |     |
 EUR million               |        8.3| -15.1|   n.a.|      13.9|-18.8|   n.a.
---------------------------+-----------+------+-------+----------+-----+-------
 Operating margin, %       |        5.2|  -7.9|       |       2.1| -2.4|
---------------------------+-----------+------+-------+----------+-----+-------
 Profit before taxes,      |           |      |       |          |     |
 EUR million               |        7.3| -16.6|   n.a.|       9.1|-22.0|   n.a.
---------------------------+-----------+------+-------+----------+-----+-------
 Earnings per share, basic,|           |      |       |          |     |
 EUR                       |       0.04| -0.27|   n.a.|      0.06|-0.43|   n.a.
---------------------------+-----------+------+-------+----------+-----+-------
 Earnings per share,       |           |      |       |          |     |
 diluted, EUR              |       0.04| -0.27|   n.a.|      0.06|-0.43|   n.a.
---------------------------+-----------+------+-------+----------+-----+-------
 Gearing, %                |           |      |       |      26.0| 59.9|
---------------------------+-----------+------+-------+----------+-----+-------
 Return on investment,  %  |           |      |       |          |     |
 (R12M)                    |           |      |       |       5.8| -5.7|
---------------------------+-----------+------+-------+----------+-----+-------
 Average number of         |           |      |       |          |     |
 personnel during period,  |           |      |       |          |     |
 calculated as full time   |           |      |       |          |     |
 equivalents (FTE)         |           |      |       |     5,889|6,695|  -12.0


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

JANUARY-DECEMBER 2013 HIGHLIGHTS
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.

- The Group's order stock totalled EUR 500.0 million at the end of the reporting
period. This is EUR 47.7 million lower than in 2012 (547.7).
- Consolidated net sales amounted to EUR 650.8 million. This is EUR 100.3
million lower than the comparable number in 2012 (751.1). Reported net sales in
2012 were EUR 775.0 million.
- Operating profit improved and amounted to EUR 13.9 million, 2.1 per cent of
net sales. The Group's operating profit was burdened in 2013 by project losses
of approximately EUR 15 million mainly originated from detailed reviews and
adjustments to several projects from the former Urban Business Group. As a
consequence organisational measures were implemented, leading to an enhanced
control over project management processes across the whole Group.
- During the fourth quarter Pöyry sold its Vantaa office real estate in Finland,
which positively impacted operating profit by EUR 13.8 million and cash flow by
EUR 58.3 million. As a result the net debt position was reduced to EUR 34.5
million (79.1) and gearing improved to 26.0 per cent (59.9).
- In view of market developments in Northern Europe, Pöyry concluded statutory
employee negotiations in Finland and the corresponding restructuring provisions
have been included in the accounts.
- Accounts receivable include positions which relate to certain public sector
infrastructure projects in Venezuela, currently valued at around EUR 16 million,
where the client is a public authority. The receivables have been described in
the report of the Board of Directors for 2012 and there have not been any
material changes during 2013.
 - During 2013 Pöyry improved its organisation, enhancing its focus on domestic
client business, from which a steady flow of small and medium sized orders has
been originating. These activities are reported under Pöyry's Regional
Operations. Pöyry progressed according to plan with its structural and
administrative process improvement program announced at the end of 2012. The
program aims at achieving annualised savings of EUR 40-50 million by the end of
2014. In this context Pöyry introduced centrally managed global support
functions and outsourced IT and certain financial processes.
- In the beginning of 2013 Pöyry's operations were organised along the following
Business Lines: Energy Business Group; Industry Business Group; Regional
Operations and Management Consulting Business Group. In line with this evolution
Pöyry is integrating its local activities in Latin and North America to the
Regional Operations as of January 2014. Corresponding pro forma figures are
published as a separate company announcement on 5 February 2014.
- The Statement of Comprehensive Income and Statement of Financial Position
2013 have been restated in line with IAS 19. The corresponding variation
analysis is published in the tables of the complete Interim Report.

DIVIDEND
The Group's parent company Pöyry PLC's net profit for 2013 amounted to EUR -
11,884,522.26 and retained earnings were EUR 62,442,575.85. The total
distributable earnings were EUR 50,558,053.59.
Considering the challenging market situation the Board of Directors of Pöyry PLC
will propose to the Annual General Meeting on 11 March 2014 that no dividend
will be paid for the year 2013.

NEW DISCLOSURE PROCEDURE FOR PUBLISHING FINANCIAL FORECASTS
Pöyry has updated its disclosure procedure for publishing financial forecasts.
Pöyry will continue to publish a financial forecast for Group operating profit
and cease publishing a financial forecast for its net sales.

OUTLOOK FOR 2014
Significant part of Pöyry's businesses is driven by clients' new capital
investments, which are mostly late in the economic cycles. Consequently, it is
difficult to predict the exact timing of clients' investment decisions and
project start-ups. Uncertainty around the general economic outlook prevails,
which may impact upon investment activity in business segments that are relevant
to Pöyry's operations.

Through its enhanced regional focus, Pöyry is establishing a solid foundation in
key domestic markets from which it expects to generate a steady flow of projects
and growth in line with prevailing market developments. In parallel, Pöyry is
accessing global growth potentials in conjunction with its global competences
and special opportunities with selected large projects.

The Group's operating profit in 2014 is expected to increase.

CORPORATE GOVERNANCE STATEMENT
Pöyry will publish its Corporate Governance Statement 2013 and its Financial
Statements 2013 including the Board of Directors' report on Tuesday 18 February
2014 at the latest. The Corporate Governance Statement will be published
separately from the Board of Directors' report and financial statements, and
will be published on the company's website at www.poyry.com.

MATERIALS TO THE AGM
The financial statements, the Board of Directors' report, the Corporate
Governance Statement as well as other documents presented to the Annual General
Meeting will be published on the company's website at www.poyry.com on 18
February 2014 at the latest.

COMMENTS BYALEXIS FRIES, PRESIDENT AND CEO:"The operating profit improved. Project losses originating from detailed reviews
and adjustments to several projects from the former Urban Business Group were
compensated by the positive contribution gained from the divestment of office
real estate in Vantaa during the fourth quarter.

The net sales declined, amid uncertain economic environments in Pöyry's
industrial and energy sectors and in Northern Europe as a whole. In spite of
promising order prospects, client investments have generally taken longer to
materialise. Thus, net sales declined relative to comparable levels in 2012 in
the Industry Business Group and the Energy Business Group. However, as announced
earlier, order prospects remain attractive and important orders were recorded in
both business groups, indicating that Pöyry has successfully defended its market
position in its relevant areas of competence.

Enhanced organisational focus on key domestic markets have sustained a steady
inflow of small and medium sized orders, albeit increasing competitive pressures
were noticed during the last quarter in particular. These have negatively
impacted sales performance in Northern Europe. In view of these developments, in
December 2013 Pöyry concluded statutory employee negotiations in Finland.

New project investments progressed at a slower pace and hence the Group's order
stock declined and totalled EUR 500.0 million at the end of the year.

Net sales amounted to EUR 650.8 million (775.0). Operating profit was EUR 13.9
million (-18.8), which is 2.1 per cent of net sales (-2.4). In 2012 the
operating profit excluding restructuring expenses was EUR 6.2 million. The
Group's operating profit was burdened in 2013 by project losses of approximately
EUR 15 million mainly originated from detailed reviews and adjustments to
several projects from the former Urban Business Group. As a consequence
organisational measures were implemented, leading to an enhanced control over
project management processes across the whole Group.

Pöyry progressed according to plan with its structural and administrative
process improvement programme as announced at the end of 2012. The programme
aims at achieving annualised cost savings of EUR 40-50 million by the end of
2014. In this context Pöyry introduced centrally managed global support
functions and outsourced certain IT and financial processes in several of
Pöyry's main locations.

Through its enhanced regional focus Pöyry is establishing a solid foundation in
key domestic markets. In parallel, it is accessing growth potentials in
conjunction with its global competences and special opportunities with selected
large projects.

Although current revenue development has fallen short of expectations, the order
prospects pipeline continues to be solid and healthy. We remain committed to our
strategic evolution. The Group's operating profit in 2014 is expected to
increase."

This is a summary of the January-December 2013 Interim report. The complete
report is enclosed with this company announcement and is available in full on
the company's website at www.poyry.com. Investors are advised to review the
complete financial statement release with tables.

PÖYRY PLC

Additional information:
Jukka Pahta, CFO
tel. +358 10 33 22629

INVITATION TO CONFERENCES, 5 FEBRUARY 2014
Pöyry's January-December 2013 result will be presented at the following news
conferences:

- A conference for analysts, investors and press will be arranged at 12:00 p.m.
Finnish time (EET) at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland.
The event will be hosted by Alexis Fries, President and CEO and Jukka Pahta,
CFO.

- An international conference call and webcast in English will begin at 5:00
p.m. Finnish time (EET). The event will be hosted by Jukka Pahta, CFO.

10:00 a.m. US EST (New York)
3:00 p.m. GMT (London)
4:00 p.m. CET (Paris)

The webcast may be followed online on the company's website www.poyry.com. A
recording will be made available on the next working day on the same website.

To attend the conference call, please dial:

FI: +358 (0)9 8171 0467
UK: +44 (0)20 3194 0544
US: +1 855 716 1592
Other countries: +44 (0)20 3194 0544
Due to the nature of 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 an international consulting and engineering company. We serve clients
globally across the energy and industrial sectors and locally in our core
markets. We deliver strategic advisory and engineering services, underpinned by
strong project implementation capability and expertise. Our focus sectors are
power generation, transmission & distribution, forest industry, chemicals &
biorefining, mining & metals, transportation, water and real estate sectors.
Pöyry has an extensive local office network employing about 6,500 experts.
Pöyry's net sales in 2013 were EUR 650 million and the company's shares are
quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).

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

[HUG#1759231]

Attachments:

Financial Statement Release January-December 2013.pdf