Pöyry - Half Year financial report

Pöyry PLC: Half year financial report 2017

Pöyry PLC          Half year financial report 4 August 2017 at 8.30 a.m. EEST

Operational improvement continued

Key figures for January-June 2017

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

  * The adjusted operating result increased to EUR 10.0 (-1.7) million. It
    improved in all business lines except in the Management Consulting Business
    Group. Operating result was EUR 3.7 (-4.2) million.


      * Net sales were EUR 267.3 (271.9) million. They remained stable in the
        Regional Operations Business Group and slightly decreased in the other
        business lines.

  * Order intake increased compared to the corresponding period in the previous
    year and resulted in the Group's order stock of EUR 474.5 (457.8) million.

                                                       1-6/  1-6/ Change, 1-12/

 Pöyry Group                                           2017  2016       %  2016
-------------------------------------------------------------------------------
 Order stock at the end of period, EUR                474.5 457.8     3.7 442.5
 million
-------------------------------------------------------------------------------
 Net sales total, EUR million                         267.3 271.9    -1.7 529.6
-------------------------------------------------------------------------------
 Operating result, EUR million                          3.7  -4.2    n.a.  -8.1
-------------------------------------------------------------------------------
 Operating margin, %                                    1.4  -1.6          -1.5
-------------------------------------------------------------------------------
 Adjusted operating result, EUR million                10.0  -1.7    n.a.   5.8
-------------------------------------------------------------------------------
 Adjusted operating margin, %                           3.7  -0.6           1.1
-------------------------------------------------------------------------------
 Result before taxes, EUR million                       2.2  -4.8    n.a. -10.6
-------------------------------------------------------------------------------
 Earnings per share, basic, EUR                       -0.01 -0.11    88.7 -0.24
-------------------------------------------------------------------------------
 Earnings per share, diluted, EUR                     -0.01 -0.11    88.7 -0.24
-------------------------------------------------------------------------------
 Earnings per share, adjusted, EUR                     0.09 -0.07    n.a. -0.01
-------------------------------------------------------------------------------
 Gearing, %                                            30.5  32.7          27.0
-------------------------------------------------------------------------------
 Return on investment, %                                5.0  -2.9          -3.2
-------------------------------------------------------------------------------
 Average number of personnel, full time equivalents   4,545 4,900    -7.3 4,839
 (FTE)
-------------------------------------------------------------------------------

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

Martin à Porta, President and CEO:

In the first half of 2017 we have shown continued improvement in our operational
business compared to the first half of 2016. Our adjusted operating margin
increased in every business line except in the Management Consulting Business
Group. Streamlining measures have enabled loss reduction in unallocated expenses
on an adjusted basis.

Our cash flow improved significantly compared to the first half of 2016 but
still shows further potential for improvement. The increase in order stock
continued and was in all business lines above the comparative levels from the
first half of 2016.

The transformation project started in 2016 has been received well and is showing
clear progress. Employee engagement continues to increase and our improved
client focus enables us to better position our new offerings. We see increasing
demand for our smart solutions in areas of bioenergy, health and safety and
operational excellence, underpinned by the recent launch of #PoyryDigital[1].
During the first half of 2017 demand in pulp and packaging has continued to be
strong, and in the Hydro and Thermal businesses we were awarded several key
projects, particularly in Asia. We are happy to report both an increase in order
stock and a more balanced portfolio. We continue and will intensify our efforts
to build connected teams and attract key talent in order to speed up our
transformation towards reaching our benchmark profitability.

Financial outlook for 2017

On 15 June 2017 Pöyry expanded its guidance for adjusted operating profit in
2017.  The previous guidance stated that "the Group's adjusted operating result
is expected to improve."  The new, expanded guidance is that "the Group's
adjusted operating result for full year 2017 is expected to improve clearly."

Market outlook 2017

In general uneven economic development is expected to continue in the second
half of 2017. Growth expectation in the Eurozone has improved but is still
fragile. Asia's development is uneven while markets relevant to us continue to
be strong and offer opportunities especially to our energy services. The Middle
East is showing a growing amount of opportunities but due to recent political
developments the outlook continues to be uncertain. Latin America is mixed,
Brazil shows modest signs of recovery while the rest of the region continues
with steady development. The North American market continues to be good.

Our industry business sector shows increased demand across Europe and North
America, demand in Latin America is weak and Asia is mixed within the region.
Demand for our energy services continues to be strong in Asia and Latin America.
The energy market in Europe is going through a market transformation resulting
in reduced demand for engineering services but increased demand for consulting
and market modelling.

The complete January-June 2017 half year financial 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 half year financial
report with tables.

PÖYRY PLC

Additional information:
Juuso Pajunen, CFO
Tel. +358 10 33 26632

Invitation to conference call today on 4 August 2017

The result will be presented in English at a conference for analysts, investors
and the press at 1:00 p.m. Finnish time (EEST). The conference will be held at
Pöyry house, Jaakonkatu 3, Vantaa, Finland. The event will be hosted by Martin à
Porta, President and CEO, and Juuso Pajunen, CFO. The participants who will
attend the conference at Pöyry house have been requested to inform about their
participation by 1 August 2017.

The participants can also join a conference call that will be arranged in
conjunction with the conference. The conference call details can be found below.

A live webcast of the conference can be followed online on the company's website
at www.poyry.com/investors. A recording will be made available by the next
working day on the same website.

To attend the conference call, please dial:

FI:                         +358 (0)9 7479 0404
SE:                       +46 (0)8 5065 3942
UK:                      +44 (0)330 336 9411
US:                      +1 719 457 1036
Other countries: +44 (0)330 336 9411

Conference ID: 7557505

Due to the nature of the live webcast, we kindly ask those attending the
conference call to dial in 5-10 minutes prior to the start of the event.

Pöyry is an international consulting and engineering company.  We deliver smart
solutions across power generation, transmission & distribution, forest industry,
chemicals & biorefining, mining & metals, transportation and water. Pöyry's net
sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq
Helsinki (POY1V). Approximately 5,500 experts. 40 countries. 130 offices.

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[1] see press release published on 4 July 2017

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Liitteet:

Half year financial report 2017.pdf