2010-07-22 07:30:00 CEST
2010-07-22 07:31:21 CEST
REGULATED INFORMATION
Pöyry - Interim report (Q1 and Q3)
Interim Report 1 January - 30 June 2010
PÖYRY PLC Interim Report 22 July 2010 at 8:30 a.m.
ORDER STOCK DEVELOPING POSITIVELY - OUTLOOK REMAINS UNCHANGED
KEY FIGURES
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
Pöyry Group 2010 2009 % 2010 2009 % 2009
Order stock at end of
period, EUR million 569.6 534.1 6.6 569.6 534.1 6.6 485.7
Net sales total,
EUR million 171.7 174.0 -1.3 334.4 361.8 -7.6 673.5
Operating profit
excluding re-
structuring costs,
EUR million 2.8 9.2 -69.6 3.8 17.5 -78.3 22.5
Operating margin
excluding re-
structuring costs, % 1.6 5.3 1.1 4.8 3.3
Operating profit,
EUR million 0.0 4.6 -100.0 -0.4 9.8 -104.1 11.6
Operating margin, % 0.0 2.6 -0.1 2.7 1.7
Profit before taxes,
EUR million -0.7 4.1 na -1.3 10.4 na 12.4
Earnings per share,
basic, EUR -0.02 0.04 na -0.04 0.10 na 0.11
Earnings per share,
diluted, EUR -0.02 0.04 na -0.04 0.10 na 0.11
Gearing, % 14.3 -6.8 -10.5
Return on investment,
% (R12M) 0.4 9.2 5.3
Average number of
personnel during
period, calculated as
full time equivalents
(FTE) 6481 7446 -13.0 7052
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.
JANUARY-JUNE 2010 HIGHLIGHTS
- The Group's order stock at the end of the report period increased by 6.6 per
cent to EUR 569.6 million from the year before (534.1). The order stock also
continued to increase sequentially and was 7.5 per cent higher than at the end
of the first quarter of 2010. The order stock increased especially in the
Industry business group.
- Sales at EUR 334.4 million were 7.6 percent below the previous year (361.8)
reflecting the post-cyclical nature of Pöyry's business.
- Operating profit excluding restructuring costs was EUR 3.8 million (17.5)
corresponding to 1.1 per cent (4.8) of sales, reflecting margin pressure.
- Restructuring costs during the report period totalled EUR 4.2 million of which
EUR 2.9 million were booked in the second quarter due mainly to streamlining and
restructuring of the Management Consulting business group.
- Cash flow after capital expenditure was EUR -46.9 million (-33.6) of which EUR
-8.6 million (-11.0) from acquisitions.
- ETV-Eröterv, Hungary, was acquired in June to reinforce Pöyry's nuclear power
segment.
- Guidance for the full year 2010 remains unchanged.
FUTURE PROSPECTS (UNCHANGED)
The Group's order stock is expected to continue growing. Due to the timing of
revenue recognition of those new orders, the impact on 2010 sales is limited.
The Group sales for the full year 2010 are expected to remain stable or grow.
The Group's operating profit is expected to remain stable after inclusion of
incremental business development expenses necessary to accelerate growth in line
with the Vision. The impact of the increasing customer activity on Pöyry's sales
and activity levels will only become visible towards the end of the year.
COMMENTS FROM HEIKKI MALINEN, PRESIDENT AND CEO:"Order intake has developed well during the first half of the year. The Eldorado
pulp mill pre-engineering project announced in the first quarter was followed by
another similar project by Suzano in Brazil during the second quarter. We were
also awarded an important engineering and project services contract by Kevitsa
Mining in Northern Finland. Over the years, Pöyry has been a key player in many
of the minerals processing projects e.g. in the Nordic countries, and we are now
further strengthening our role in the sector. All in all, the order stock in the
Industry business group has developed very favourably. Among other major
projects reflecting the good order intake we can mention e.g. a project in
Mexico to provide specialised advisory services during the construction of the
largest wastewater tunnel in the world and the engineering services and site
supervision for the Reißeck II pumped storage plant in Austria. In China we were
awarded three projects, two in high-speed rail and one in waste-to-energy
totalling roughly EUR 15 million. Management Consulting won an important project
to develop high-level strategy in the area of nuclear and renewable energy
applications in Saudi Arabia.
Despite the good order inflow, profitability was still low. After the very quiet
investment period in 2009 there are currently no large projects under
implementation. At the end of the reporting period our order stock had, however,
increased by 17 per cent from the year end 2009. We expect it to grow further
but the impact on Pöyry's sales and activity levels will only be visible towards
the end of the year. We keep our full year 2010 outlook unchanged and expect the
Group's operating profit excluding restructuring costs to remain stable compared
with the 2009 operating profit (EUR 22.5 million, excluding restructuring
costs).
We reinforced our nuclear segment in June by acquiring ETV-Eröterv, the largest
privately owned power sector consulting engineering company in Hungary. With
this acquisition Pöyry's existing nuclear consulting engineering network will be
enhanced with ETV's knowledge of Russian nuclear power plant technology which
expands Pöyry's abilities to cover major nuclear reactor technologies".
PÖYRY PLC
Additional information by:
Heikki Malinen, President and CEO
tel. +358 10 33 21307
Johan Brink, CFO (acting)
tel. +358 10 33 22183
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002
INVITATION TO CONFERENCES TODAY 22 JULY 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 5:00 p.m.
Finnish time (EET).
10:00 a.m. US EDT (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
US: +1 334 323 6201
Other countries: +44 20 7162 0025
Conference id: 869206
Due to the live webcast, we kindly ask those attending the international
conference call to dial in five 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 and efficient, best-in-class design and
supervision. Our in-depth expertise extends to the fields of energy, industry,
urban & mobility and water & environment. Pöyry has 7000 experts operating in
about 50 countries, locally and globally. 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
INTERIM REPORT 1 JANUARY - 30 JUNE 2010
All figures and sums have been rounded off from the exact figures which may lead
to minor discrepancies upon addition or subtraction.
The figures in this interim report are unaudited.
MARKET REVIEW
Various composite and confidence indicators continue to project recovery in the
world economy towards the end of the year. The actual GDP figures, however, were
still generally quite modest in the western world during early 2010 although
industrial production has continued to improve during the year both in Western
Europe and in the US. Economic growth e.g. in China and Brazil has been robust.
The positive projections on the future recovery in the world economy and
improving industrial activity have led to increasing prices of certain
commodities and raw materials. Supported by growing demand for paper and low
inventory levels, pulp prices rocketed during the first half of 2010. Crude oil
and natural gas prices have also continued to rise clearly although the growth
rate decelerated somewhat towards the end of the report period. The general
price development of metals and minerals has been relatively robust during the
year and also steel prices have started to increase towards the end of the
period.
Despite these positive signs new investments have not yet clearly started on a
larger scale. Demand for various pre-investment and pre-engineering services
has, however, been increasing.
Growth in demand for energy continues in emerging markets and the ageing power
generation assets in mature markets are expected to lead to future investments.
Although in the shorter term the impacts of the financial crises are still
prolonging the investment decision process, during the reporting period a couple
of political decisions were made that enforce the long term outlook in the
energy sector. In Finland the Government's ministerial working group agreed on
an extensive package concerning renewable energy, the use of forest chips and
other wood-based energy in particular, with the aim of increasing energy
production based on renewable forms of energy by a total of 38 TWh of final
energy consumption by 2020. In July the Finnish Parliament voted in favour of
the decision-in-principle approving the construction of two new nuclear power
plant units.
Positive market development within various industrial sectors and especially in
pulp and paper has been reflected in increasing investment planning. Investments
into the transportation sector remain strong but the construction sector,
particularly the commercial and the industrial sectors, continued fairly
sluggish. The financial stringency has been affecting public investment activity
in the water supply and sanitation segment, especially within Finnish
municipalities. The improving economic environment has started to increase
demand for management consulting services.
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, end of 1-6/ 1-6/ Change,
period 2010 2009 % 2009
Consulting and engineering 564.3 530.7 6.3 483.6
EPC 5.3 3.4 55.9 2.1
Total 569.6 534.1 6.6 485.7
The Group's order stock at the end of the period totalled EUR 569.6 million
(534.1) representing a growth of 6.6 per cent compared with the year before. The
order stock increased 7.5 per cent from EUR 529.7 million at the end of the
first quarter of 2010. The breakdown by business group for the order stock at
the end of the period was as follows: Energy EUR 191.2 million (34 per cent of
the total order stock), Industry EUR 82.5 million (14 per cent), Urban &
Mobility EUR 199.6 million (35 per cent), Water & Environment EUR 72.5 million
(13 per cent) and Management Consulting EUR 23.8 million (4 per cent).
ORDER INTAKE
The Group's order intake in January-June 2010 increased from the corresponding
period in 2009 as orders received in the second quarter were higher than the
year before.
Within the Energy business group order intake in the reporting period remained
flat compared with the corresponding period the year before reflecting the good
order inflow in the first quarter of 2009. Order intake in the second quarter of
2010 increased from the year before. In the Industry business group the first
half order intake was on a significantly higher level than the year before, even
if the second quarter order intake did not quite meet the very high first
quarter 2010. In the Urban & Mobility business group the second quarter order
intake was significantly higher than in the first quarter of 2010 as activity
especially in railway construction was high. The January-June 2010 order intake
did not, however, reach the very high numbers of the first half of 2009. The
Water & Environment business group's order intake in January-June 2010 was
higher than the year before. The improvement in industrial activity has been
reflected in the Management Consulting business group's assignments and their
order intake in January-June 2010 was clearly higher than the year before.
GROUP SALES
Share
of total
sales, %
Net sales by business 4-6/ 4-6/ Change, 1-6/ 1-6/ Change, 1-6/
group, EUR million 2010 2009 % 2010 2009 % 2010
Energy 41.1 41.6 -1.2 83.9 89.9 -6.7 25.1
Industry 40.1 45.6 -12.1 75.9 96.9 -21.7 22.7
Urban & Mobility 52.0 46.3 12.3 99.5 95.2 4.5 29.8
Water & Environment 19.9 22.0 -9.5 39.2 43.0 -8.8 11.7
Management Consulting 18.5 17.8 3.9 35.7 35.6 0.3 10.7
Unallocated 0.1 0.7 -85.7 0.2 1.2 -83.3 0.0
Total 171.7 174.0 -1.3 334.4 361.8 -7.6 100.0
Consolidated net sales in the reporting period fell by 7.6 per cent compared
with the year before to EUR 334.4 million (361.8) reflecting the post-cyclical
nature of Pöyry's business. The sales volume declined clearly in the Industry
business group and was also below the previous year's levels in the Energy and
Water & Environment business groups. In the Industry and Energy business groups
the comparison figures where high due to a couple of large projects in their
final execution stages during early 2009 which partly explains the drop.
Supported by the solid order stock the net sales increased in Urban & Mobility.
Sales in the Management Consulting business group remained stable.
The net sales were fairly flat in the second quarter of 2010 compared with the
year before and amounted to EUR 171.7 million (174.0). Supported by the solid
order stock, sales in the Urban & Mobility business group increased 12.3 per
cent from the year before. Sales were also higher than the year before in the
Management Consulting business group but decreased in the Industry and Water &
Environment business groups. Sales in the Energy business group were fairly
stable compared with the year before.
January-June 2010 sales were clearly higher in North America and increased also
in South America compared with the corresponding period the year before. Sales
in the Nordic countries were relatively stable but declined in other Europe and
Asia.
Business groups (operating segments)
The business group split is based on the structure which has been effective
since 1 January 2010. All figures for 2009 have been restated (pro forma)
accordingly. All personnel numbers are calculated as full time equivalents
(FTE).
Energy
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 191.2 178.5 7.1 191.2 178.5 7.1 171.0
Sales, EUR million 41.1 41.6 -1.2 83.9 89.9 -6.7 173.9
Operating profit excl.
restructuring costs,
EUR million 0.6 2.1 -71.4 2.0 5.3 -62.3 7.8
Operating margin excl.
restructuring costs, % 1.5 5.0 2.4 5.9 4.5
Operating profit,
EUR million 0.4 1.3 -69.2 0.8 4.5 -82.2 5.9
Operating margin, % 1.0 3.1 1.0 5.0 3.4
Personnel at end of
period 1463 1468 -0.3 1463 1468 -0.3 1402
1-6/2010
The order stock at the end of the period increased by 7.1 percent from the year
before and totalled EUR 191.2 million (178.5). The order stock increased 8.9 per
cent from the end of the first quarter of 2010. The business group signed in
March EPC contracts for two renewable energy projects in the Philippines with a
total value of EUR 46 million. The projects are not included in the order stock
due to postponement of the financial closure of the projects.
January-June 2010 net sales were EUR 83.9 million (89.9) which is 6.7 per cent
less than in the year before. In early 2009 there were still a couple of larger
projects in their final stages of execution whereas during 2010 the impacts of
the global financial crises have been delaying decisions on larger projects in
the energy sector. The difficult market situation has also been reflected in
intensifying price competition, which in certain markets has led to lower
volumes for the Energy business group.
January-June 2010 operating profit before EUR 1.2 million restructuring costs
amounted to EUR 2.0 million (5.3) and the operating margin remained on an
unsatisfactory level at 2.4 per cent of sales (5.9). Low profitability in the
oil & gas and renewables segments are burdening the profitability and actions
have been taken to adjust capacity to demand and streamline operations
especially in Spain, Abu Dhabi, South Africa and Malaysia. Operating profit
after the restructuring costs was EUR 0.8 million (4.5) or 1.0 per cent of sales
(5.0).
4-6/2010
Order inflow has been increasing since its trough in the third quarter of 2009.
The solid demand especially in the hydropower business area has continued and in
the second quarter of 2010 Pöyry was awarded e.g. contracts for the provision of
engineering services and for site supervision during the construction period of
the Reißeck II pumped storage plant. The overall value for Pöyry in the two
contracts amounts to approximately EUR 9.2 million. Prior to these contracts
Pöyry also executed the tender and approval design for the Reißeck II pumped
storage plant. Pöyry has also been awarded several smaller assignments in the
renewables and power & fuels business areas reflecting the gradually improving
market environment.
Net sales for the second quarter of 2010 were flat compared with the year before
and totalled EUR 41.1 (41.6) million reflecting the post-cyclical nature of the
energy business. As new orders will be visible in the sales volumes only towards
the end of the year, the net sales decreased slightly from EUR 42.8 million in
the first quarter of 2010.
The second quarter 2010 operating profit before EUR 0.2 million restructuring
costs amounted to EUR 0.6 (2.1) million and the operating margin was 1.5 per
cent of sales (5.0). The poor profitability was mainly due to the oil & gas and
renewables segments where actions to improve the situation are not yet fully
visible. Operating profit after the restructuring costs was EUR 0.4 million
(1.3) or 1.0 per cent of sales (3.1).
In June Pöyry reinforced its nuclear power segment by acquiring 97.8 per cent of
the largest privately owned power sector consulting engineering company in
Hungary. ETV-Eröterv's net sales in 2009 were EUR 12 million and its product
range comprises nuclear and conventional power plant engineering, services for
radioactive waste related projects as well as full scale designing services in
the area of transmission and distribution making it a very good strategic fit
for Pöyry's Energy business group. ETV's balance sheet was included in Pöyry's
reporting as of 30 June 2010.
Industry
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 82.5 57.5 43.5 82.5 57.5 43.5 39.3
Sales, EUR million 40.1 45.6 -12.1 75.9 96.9 -21.7 162.0
Operating profit excl.
restructuring costs,
EUR million -1.3 2.5 -152.0 -5.4 4.0 na -3.5
Operating margin excl.
restructuring costs, % -3.2 5.5 -7.1 4.1 -2.2
Operating profit,
EUR million -1.7 -0.4 na -6.0 -1.3 na -10.1
Operating margin, % -4.2 -0.9 -7.9 -1.3 -6.2
Personnel at end of
period 1842 2122 -13.2 1842 2122 -13.2 1790
1-6/2010
The order stock at the end of the period increased by 43.5 percent from the year
before and totalled EUR 82.5 million (57.5). The order stock also increased
18.5 per cent from the end of the first quarter of 2010.
January-June 2010 net sales were EUR 75.9 (96.9) million representing a fall of
21.7 per cent. The good development in the order stock during the first half of
2010 has not yet been fully visible in the sales and on the other hand, the
comparison figure is particularly high as a couple of large projects were in
their final execution phases during the corresponding period of 2009.
January-June 2010 operating profit before restructuring costs of EUR 0.6 million
was EUR -5.4 million (4.0) and the operating margin was -7.1 per cent of sales
(4.1). The lack of larger projects was reflected in low activity levels and
profitability. Operating profit after restructuring costs was EUR -6.0 million
(-1.3) or -7.9 per cent of sales (-1.3).
4-6/2010
Clients' increasing activity has been reflected in the order inflow in early
2010, and during the second quarter the pulp and paper projects announced in the
first quarter were followed by another EUR 7.3 million pulp mill project in
Brazil and a EUR 6.5 million biomass boiler engineering project for a paper mill
in the US. Pöyry was also awarded an important contract by Kevitsa Mining for
its nickel/copper concentrator project in Northern Finland. The value of the
engineering and project services contract is expected to exceed EUR 5 million.
Net sales for the second quarter of 2010 were EUR 40.1 million (45.6)
representing a fall of 12.1 per cent. Although sales still declined clearly from
the year before the sales volumes have been steadily improving since their
trough in the third quarter of 2009 backed up by the increasing order stock.
The second quarter 2010 operating profit before EUR 0.4 million restructuring
costs amounted to EUR -1.3 (2.5) million and the operating margin was -3.2 per
cent of sales (5.5). The low activity levels and the lack of larger projects
continued to burden the profitability and the actions to adjust capacity to
demand were not yet fully visible. Operating profit after the restructuring
costs was EUR -1.7 million (-0.4) or -4.2 per cent of sales (-0.9).
Urban & Mobility
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 199.6 202.0 -1.2 199.6 202.0 -1.2 194.8
Sales, EUR million 52.0 46.3 12.3 99.5 95.2 4.5 184.5
Operating profit excl.
restructuring costs,
EUR million 3.3 3.5 -5.7 6.9 7.6 -9.2 15.5
Operating margin excl.
restructuring costs, % 6.3 7.6 6.9 8.0 8.4
Operating profit,
EUR million 3.2 3.4 -5.9 6.8 7.2 -5.6 14.9
Operating margin, % 6.2 7.3 6.8 7.6 8.1
Personnel at end of
period 1829 1817 0.7 1829 1817 0.7 1858
1-6/2010
The order stock at the end of the period was fairly stable compared with the
year before and totalled EUR 199.6 million (202.0). The order stock increased
3.1 per cent from the end of the first quarter of 2010.
Supported by the steady order stock, the January-June 2010 net sales increased
by 4.5 per cent from the year before and totalled EUR 99.5 (95.2).
January-June 2010 operating profit at EUR 6.8 million (7.2) or 6.8 per cent of
sales (7.6) includes a minor restructuring item of EUR 0.1 million that relates
to the combining of the former Transportation and Construction Services business
groups. The underlying profitability in the first half of 2010 was slightly
burdened by continuous business development and growth efforts in new markets
such as China, India and Latin America as well as challenges in execution of
some projects in Eastern Europe.
4-6/2010
The second quarter order intake was significantly higher than in the first
quarter of 2010 although it did not reach the high level of orders the year
before. In the second quarter of 2010 Pöyry was awarded e.g. a EUR 8.7 million
contract for high-speed railway construction supervision in China and a EUR 6.1
million project in Mexico to provide specialised advisory services during the
construction of the largest wastewater tunnel in the world.
Net sales for the second quarter amounted to EUR 52.0 million (46.3)
representing a growth of 12.3 per cent compared with the year before. Supported
by the steady order stock and deliveries especially in Latin America, sales have
been increasing steadily since their trough in the third quarter of 2009.
The second quarter 2010 operating profit amounted to EUR 3.2 million (3.4) or
6.2 per cent of sales (7.3). Operating profit includes a EUR 0.1 million one-off
cost relating to the combining of the former Transportation and Construction
Services business groups. The underlying profitability was slightly burdened by
challenges in execution of some projects in Eastern Europe.
Water & Environment
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 72.5 75.5 -4.0 72.5 75.5 -4.0 62.3
Sales, EUR million 19.9 22.0 -9.5 39.2 43.0 -8.8 86.5
Operating profit excl.
restructuring costs,
EUR million 0.8 1.6 -50.0 1.3 2.4 -45.8 5.1
Operating margin excl.
restructuring costs, % 4.0 7.3 3.3 5.6 6.0
Operating profit,
EUR million 0.8 1.5 -46.7 1.3 2.3 -43.5 4.9
Operating margin, % 4.0 6.8 3.3 5.3 5.7
Personnel at end of
period 881 927 -5.0 881 927 -5.0 908
1-6/2010
The order stock at the end of the period decreased by 4.0 per cent from the year
before and totalled EUR 72.5 million (75.5). The order stock increased, however,
2.8 per cent from the end of the first quarter of 2010.
Reflecting the lower level of the order stock, the January-June 2010 net sales
decreased by 8.8 per cent from the year before and totalled EUR 39.2 million
(43.0).
January-June 2010 operating profit amounted to EUR 1.3 million (EUR 2.4 million
excluding and EUR 2.3 million including restructuring costs) and the operating
margin was 3.3 per cent of sales (5.6 percent excluding and 5.3 percent
including restructuring costs). Profitability has been burdened by the difficult
business environment in the municipal sector and low activity level in Finland.
4-6/2010
The second quarter order inflow was clearly lower than in the first quarter.
During the second quarter the assignments from international markets were lower.
Net sales in the second quarter of 2010 decreased 9.5 per cent from the year
before and amounted to EUR 19.9 million (22.0). Compared with the first quarter
of 2010 the net sales remained fairly stable.
Operating profit for the second quarter of 2010 amounted to EUR 0.8 million (EUR
1.6 million excluding and EUR 1.5 million including restructuring costs) and the
operating margin was 4.0 per cent of sales (7.3 percent excluding and 6.8
percent including restructuring costs). Profitability remained under the
targeted levels mainly due to the difficult situation in the Finnish municipal
market. Actions were taken in Finland to adjust capacity to demand.
Management Consulting
4-6/ 4-6/ Change, 1-6/ 1-6/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 23.8 19.3 23.3 23.8 19.3 23.3 18.0
Sales, EUR million 18.5 17.8 3.9 35.7 35.6 0.3 68.5
Operating profit excl.
restructuring costs,
EUR million 0.6 0.3 100.0 0.9 0.1 na 1.2
Operating margin excl.
restructuring costs, % 3.2 1.7 2.5 0.3 1.8
Operating profit,
EUR million -1.6 -0.4 na -1.3 -1.0 -30.0 -0.4
Operating margin, % -8.6 -2.2 -3.6 -2.8 -0.7
Personnel at end of
period 452 493 -8.3 452 493 -8.3 451
1-6/2010
The order stock at the end of the period increased by 23.3 percent from the year
before and totalled EUR 23.8 million (19.3). The order stock also increased
16.1 per cent from the end of the first quarter of 2010.
January-June 2010 net sales at EUR 35.7 million were stable compared with the
year before (35.6). The good development in the order stock during the first
half of 2010 was not yet fully visible in the sales.
January-June 2010 operating profit before restructuring costs of EUR 2.3 million
increased to EUR 0.9 million (0.1) and the operating margin was 2.5 per cent of
sales (0.3). The underlying profitability is still unsatisfactory and the
improvement in profitability was mainly due to success fees that were booked in
the second quarter. Operating profit after restructuring costs was EUR -1.3
million (-1.0) or -3.6 per cent of sales (-2.8).
4-6/2010
Order intake continued to increase sequentially in the second quarter of 2010
but the general market environment continued challenging.
Net sales in the second quarter at EUR 18.5 million (17.8) increased 3.9 per
cent from the year before reflecting the good development in the order stock.
The second quarter 2010 operating profit before EUR 2.2 million restructuring
costs amounted to EUR 0.6 (0.3) million and the operating margin was 3.2 per
cent of sales (1.7). The improvement in profitability was mainly due to success
fees that were booked in the second quarter and the underlying profitability is
still low. In the second quarter, an action programme was started to restructure
the Management Consulting business group into a more unified and integrated unit
and the business group's regional organisation and business model will be
developed and streamlined according to the defined key strategic priorities. As
part of the programme a total of EUR 2.2 million restructuring costs were booked
in the second quarter. Operating profit after the restructuring costs was EUR
‑1.6 million (-0.4) or -8.6 per cent of sales (-2.2).
Group overhead
Unallocated costs in January-June 2010 were EUR 2.0 million (1.9), representing
0.6 per cent of sales (0.5).
GROUP FINANCIAL RESULT
The consolidated operating loss for the report period, including restructuring
costs of EUR 4.2 million, totalled EUR -0.4 million (9,8). The consolidated
operating margin, including restructuring costs, declined to -0.1 per cent from
2.7 per cent of sales the year before. Profitability in January-June 2010
declined in all business groups although it remained fairly stable in the Urban& Mobility business group. In quarter-on-quarter comparison, the decline in
profitability was further pressed by substantial restructuring costs in the
Management Consulting business group. The action programme designed to maintain
Pöyry's profitability at an acceptable level is moving ahead.
The net financial items were EUR -0.9 million (0.6).
Profit before taxes was negative and totalled EUR -1.3 (10.4).
Income taxes were EUR -1.3 million (-3.8).
Net profit for the period was EUR -2.6 (6.6) million.
Earnings per share were EUR -0.04 (0.10).
BALANCE SHEET
The consolidated balance sheet is strong. The consolidated balance sheet
amounted to EUR 531.3 million at the end of the report period which is EUR 15.9
million higher than at year-end 2009 (515.4) and EUR 14.9 million higher than at
end March 2010. Total equity at the end of the report period was EUR 184.0
million (180.7). Total equity attributable to equity holders of the parent
company was EUR 176.8 million (172.3) or EUR 2.98 per share (2.93).
Return on equity (ROE) was -2.8 per cent (6.9). Return on investment (ROI) was
0.4 per cent (9.2).
CASH FLOW AND FINANCING
Net cash from operating activities in the reporting period was EUR -35.5 million
(-20.1), representing EUR -0.60 per share. Net cash before financing activities
was EUR -46.9 million (-33.6). The cash flow includes EUR -8.6 million (-11.0)
from acquisitions. The weak cash flow reflects delays in some project payments
and is expected to improve towards the end of the year.
Net debt at the end of the reporting period totalled EUR 26.3 million (-12.2).
The net debt/equity ratio (gearing) was 14.3 per cent (-6.8). The equity ratio
was 39.7 per cent (40.0).
The Group's liquidity is good. At the end of the reporting period, the Group's
cash and cash equivalents and other liquid assets amounted to EUR 88.2 (123.6)
million. In addition to these, the Group had unused long-term overdraft
facilities amounting to EUR 93.7 million.
Pöyry paid its shareholders dividends amounting to EUR 5.9 million or EUR 0.10
per share in March 2010.
Calculation of key figures is presented on the Calculation of Key Figures page
of this Interim Report.
CAPITAL EXPENDITURE AND ACQUISITIONS
During the reporting period, the Group's capital expenditure totalled EUR 12.8
million, of which EUR 2.9 million consisted mainly of computer software, systems
and hardware and EUR 9.9 million was due to acquisitions.
Capital expenditure, 4-6/ 4-6/ 1-6/ 1-6/
EUR million 2010 2009 2010 2009 2009
Capital expenditure, operative 1.4 1.1 2.9 2.9 4.8
Capital expenditure, shares 8.5 2.8 9.9 4.2 5.0
Capital expenditure, total 9.9 3.9 12.8 7.1 9.8
HUMAN RESOURCES
Personnel (FTE) by business group, 1-6/ 1-6/ Change,
at the end of the period 2010 2009 % 2009
Energy 1463 1468 -0.3 1402
Industry 1842 2122 -13.2 1790
Urban & Mobility 1829 1817 0.7 1858
Water & Environment 881 927 -5.0 908
Management Consulting 452 493 -8.3 451
Group staff and shared resources 142 119 19.3 121
Personnel, total 6609 6946 -4.9 6530
Personnel (FTE) by geographic area, 1-6/ 1-6/ Change,
at the end of the period 2010 2009 % 2009
Nordic countries 2537 2756 -7.9 2510
Other Europe 2844 2931 -3.0 2826
Asia 522 559 -6.6 529
North America 200 219 -8.7 198
South America 415 341 21.7 344
Other areas 91 140 -35.0 123
Personnel, total 6609 6946 -4.9 6530
Personnel structure
The Group had an average of 6481 (7446) employees (FTEs) during the report
period, which is 13.0 per cent less than the year before. The number of
personnel at the end of the period was 6609 (6946).
To support the projected order inflow in the Industry business group, staff has
been recruited in Brazil, Poland and China.
CURRENT AUTHORISATIONS
Pöyry PLC's Annual General Meeting on 11 March 2010 authorised the Board of
Directors to decide on the acquisition of the company's own shares with
distributable funds. A maximum of 5 800 000 shares can be acquired.
The AGM also authorised the Board of Directors to decide on making a donation of
a maximum of EUR 300 000 to the Aalto University in Finland.
Neither of these authorisations had been used by the end of the reporting
period.
CHANGES IN EXECUTIVE MANAGEMENT DURING THE SECOND QUARTER 2010
In April, the member of Pöyry's Group Executive Committee and Chief Financial
Officer (CFO), Mr Esa Ikäheimonen announced that he will leave Pöyry to join
another company and Mr Johan Brink, Deputy to the CFO, was appointed as acting
Chief Financial Officer.
SHARE CAPITAL AND SHARES
The share capital of Pöyry PLC on 30 June 2010 totalled EUR 14 588 478. The
total number of shares including treasury shares totalled 59 330 954 at the end
of the reporting period.
On 30 June 2010, Pöyry held a total of 383 308 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 3.9 million.
SHARES SUBSCRIBED FOR UNDER THE OPTION PROGRAMME 2004
Pursuant to Pöyry's stock option programme 2004, a total of 359 556 new shares
were subscribed after end 2009. As a result of these subscriptions, the total
number of Pöyry's shares including treasury shares increased to 59 330 954
shares. At the end of the reporting period, the stock options issued under Pöyry
PLC's ongoing stock option programme 2004 entitle holders to subscribe for a
total of 1 335 872 shares, which would increase the total number of Pöyry's
shares (including treasury shares) to 60 666 826. The option programme includes
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 30 June 2010 was EUR 10.11. The volume
weighted average share price during the report period was EUR 10.21, the highest
quotation being EUR 12.30 and the lowest EUR 9.02. The share price has decreased
approximately 9 per cent from the end of 2009. During the report period
approximately 11.4 million Pöyry shares were traded on NASDAQ OMX Helsinki,
corresponding to a turnover of approximately EUR 116.5 million. The average
daily trading volume was about 92 800 shares or approximately EUR 1.0 million.
On 30 June 2010, the total market value of Pöyry's shares was EUR 599.4 million
excluding treasury shares held by the company and EUR 599.8 million including
treasury shares.
OWNERSHIP STRUCTURE
The number of registered shareholders increased from 6933 at the end of 2009 to
7866 at the end of the reporting period, representing a growth of 13 per cent.
Corbis S.A. continued to be the largest shareholder with 31.18 per cent of the
voting rights. The Chairman of the Board of Directors of Pöyry, Henrik
Ehrnrooth, holds indirectly with his brothers Georg Ehrnrooth, member of the
Board of Directors of Pöyry and Carl-Gustaf Ehrnrooth a controlling interest in
Corbis S.A.
At the end of the reporting period a total of 14.20 per cent of the voting
rights were owned by nominee-registered shareholders. Total ownership outside
Finland, including Corbis, together with nominee-registered shareholders was in
total 46.58 per cent of the voting rights.
MOST SIGNIFICANT RISKS AND BUSINESS UNCERTAINTIES
Over the last six months the investment outlook among private clients
(especially energy and industry) has gradually started to improve. A major risk
relates to the possibility that the world economy would enter a so-called"double dip" recession scenario. This could complicate financing and lead
private clients to postpone their planned investments.
An important part of the Pöyry Group's business comes from municipal and
institutional clients. The increased indebtedness of various economies has led
EU and various governments to decide on austerity and cost reduction measures.
These are expected to impact infrastructure investments negatively at some
stage. The magnitude and timing is, however, unclear. With respect to municipal
clients there is a risk that reduced tax revenues of local governments may
impact negatively the funding of infrastructure projects or delay them.
A part of the Pöyry Group's sales originates from emerging and developing
countries, some of which face political and economic challenges. There is a risk
that in projects in these countries payment of invoices may be delayed
excessively or the Pöyry Group experiences credit losses. To manage this risk,
the company maintains systematic processes for the follow-up and collection of
receivables. Pöyry's financial position is solid and the balance sheet is
strong.
THE GROUP'S FUTURE PROSPECTS (UNCHANGED)
The positive development in order intake is expected to continue and the Group's
order stock to grow further. It takes a certain time to convert orders into
sales, and therefore, Group sales for the full year 2010 are expected to remain
stable or grow from 2009. The Group's operating profit is expected to remain
stable compared with 2009 after inclusion of incremental business development
expenses necessary to accelerate growth in line with the Vision. The impact of
increasing customer activity on Pöyry's sales and activity levels will only
become visible towards the end of the year.
The operating profit outlook for the business groups is as follows:
Both the Energy and Industry business groups' operating profit is estimated to
remain stable excluding one-time items. The Urban & Mobility business group's
operating profit is expected to remain stable. Equally, the operating profit of
the Water & Environment business group is expected to remain stable. The
Management Consulting business group's operating profit (excluding one-time
items) is expected to improve.
Vantaa, 21 July 2010
PÖYRY PLC
Board of Directors
THE INTERIM REPORT 1 JANUARY - 30 JUNE 2010
This interim report has been prepared in accordance with the IAS 34 following
the same accounting principles as in the annual financial statement for 2009.
All figures in the accounts have been rounded and consequently the sum of
individual figures can deviate from the presented sum figure.
From the beginning of 2010, the Group has adopted the revised IFRS 3 Business
Combinations standard and the amended IAS 27 Consolidated and Separate Financial
Statements standard. The adoption of the revised standards and interpretations
does not have any material effect on the interim report.
This interim report is unaudited.
PÖYRY GROUP
STATEMENT OF COMPREHENSIVE INCOME 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2010 2009 2010 2009 2009
---------------------------------------------------------------------
NET SALES 171.7 174.0 334.4 361.8 673,5
---------------------------------------------------------------------
Other operating income 0.3 0.1 0.5 0.3 0,8
Share of associated companies'
results 0,1 0.2 0.2 0.4 0.5
Materials and supplies -3.4 -1.9 -5.1 -2.8 -7,0
External charges, subconsulting -26.7 -20.0 -46.9 -43.4 -90.6
Personnel expenses -102.5 -107.3 -202.8 -219.9 -401.5
Depreciation -1.9 -2.1 -3.9 -4.2 -8.2
Other operating expenses -37.6 -38.4 -76.8 -82.4 -155.9
OPERATING PROFIT 0.0 4.6 -0.4 9.8 11.6
---------------------------------------------------------------------
Proportion of net sales, % 0.0 2.6 -0.1 2.7 1.7
Financial income 0.5 1.0 1.0 2.9 5.0
Financial expenses -1.7 -1.5 -3.2 -2.9 -5.6
Exchange rate differences 0.5 0.0 1.3 0.6 1.4
PROFIT BEFORE TAXES -0.7 4.1 -1.3 10.4 12.4
---------------------------------------------------------------------
Proportion of net sales, % -0.4 2.4 -0.4 2.9 1.8
Income taxes -0.8 -1.8 -1.3 -3.8 -4.4
---------------------------------------------------------------------
NET PROFIT FOR THE PERIOD -1.5 2.3 -2.6 6.6 8.0
---------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME
Translation differences 4.6 1.4 7.0 2.0 4.2
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 3.1 3.7 4.4 8.6 12.2
---------------------------------------------------------------------
Net profit attributable to:
Equity holders of the parent
company -1.7 2.1 -2.6 5.9 6.5
Minority interest 0.2 0.2 0.0 0.7 1.5
Total comprehensive income
attributable to:
Equity holders of the parent
company 2.9 3.5 4.4 7.9 10.7
Minority interest 0.2 0.2 0.0 0.7 1.5
Earnings/share, attributable to
the equity holders of the
parent company, EUR -0.02 0.04 -0.04 0.10 0.11
Corrected with dilution effect -0.02 0.04 -0.04 0.10 0.11
STATEMENT OF FINANCIAL POSITION 30 June 30 June 31 December
EUR million 2010 2009 2009
----------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Goodwill 114.3 99.8 101.3
Intangible assets 5.3 5.7 5.4
Tangible assets 16.5 17.8 16.6
Shares in associated companies 5,9 5.6 5.5
Other shares 2.0 1.9 1.9
Loans receivable 1.5 1.1 1.5
Deferred tax receivables 11.2 7.5 9.5
Pension receivables 0.4 1.0 0.3
Other 8.9 6.7 7.5
----------------------------------------------------------------------
166.0 147.1 149.5
CURRENT ASSETS
Work in progress 109.5 79.8 78.8
Accounts receivable 143.0 134.3 127.3
Loans receivable 0.1 0.2 0.1
Other receivables 9.4 11.3 7.5
Prepaid expenses and accrued income 15.1 14.6 10.2
Financial assets at fair value through
profit and loss 33.9 27.9
Cash and cash equivalents 54.3 123.6 114.1
----------------------------------------------------------------------
365.3 363.8 365,9
TOTAL 531.3 510.9 515.4
----------------------------------------------------------------------
EQUITY AND LIABILITIES
EQUITY
Equity attributable to the equity holders
of the parent company
Share capital 14.6 14.6 14.6
Share premium reserve 0.0 32.4 0.0
Legal reserve 3.1 20.8 2.9
Invested free equity reserve 58.1 5.8 56.6
Translation difference -11.4 -20.5 -18.2
Retained earnings 112.4 119.2 120.2
----------------------------------------------------------------------
176.8 172.3 176.0
Minority interest 7.2 8.4 8.0
----------------------------------------------------------------------
184.0 180.7 184.0
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing non-current liabilities 94.0 91.0 101.3
Pension obligations 7.9 7.8 7.4
Deferred tax liability 1.7 5.7 1.7
Other non-current liabilities 2.5 2.5 2.3
----------------------------------------------------------------------
106.1 107.0 112.7
CURRENT LIABILITIES
Amortisations of interest bearing non-
current liabilities 19.6 19.5 19.8
Interest bearing current liabilities 0.9 0.9 1.7
Provisions 12.1 9.7 8.3
Project advances 68.0 59.2 66.0
Accounts payable 24.7 20.8 21.5
Other current liabilities 32.9 33.2 29.3
Current tax payable 0.6 1.6 4.2
Accrued expenses and deferred income 82.4 78.3 68.0
----------------------------------------------------------------------
241.2 223.2 218.8
TOTAL 531.3 510.9 515.4
STATEMENT OF CASH FLOWS 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2010 2009 2010 2009 2009
----------------------------------------------------------------
FROM OPERATING ACTIVITIES
Net profit for the period -1.5 2.3 -2.6 6.6 8.0
Depreciation and value decrease 1.9 2.1 3.9 4.2 8.2
Gain on sale of fixed assets 0.0 0.0 0.0 0.0 0.0
Share of associated companies'
results -0.1 -0.2 -0.2 -0.4 0.2
Financial income and expenses 0.7 0.5 0.9 -0.6 -0.8
Income taxes 0.8 1.8 1.3 3.8 4,4
Change in work in progress -12.8 -4.4 -30.7 -10.5 -9.5
Change in accounts and other
receivables -10.9 -5.1 -23.9 3.5 18.3
Change in advances received 1.7 -2.5 2.0 -14.4 -7.6
Change in payables and other
liabilities 13.4 0.0 17.4 -1.3 -15.7
Received financial income 0.5 0.9 1.0 2.8 5.0
Paid financial expenses -1.5 -1.1 -3.2 -2.7 -5.7
Paid income taxes 0.0 0.6 -1.4 -11.1 -15,2
----------------------------------------------------------------
Total from operating activities -7.8 -5.1 -35.5 -20.1 -10.4
CAPITAL EXPENDITURE
Investments in shares in
subsidiaries deducted with cash
acquired -7.6 -4.2 -8.6 -11.0 -10.6
Investments in other shares 0.0 0.0 0.0 0.0 -0.2
Investments in fixed assets -1.4 -1.1 -2.9 -2.9 -4.7
Sales of fixed assets 0.1 0.2 0.1 0.4 0.3
----------------------------------------------------------------
Capital expenditure total, net -8.9 -5.1 -11.4 -13.5 -15.2
Net cash before financing -16.7 -10.2 -46.9 -33.6 -25.6
FINANCING
New loans 0.0 0.0 0.0 0.0 20.0
Repayments of loans -8.8 -10.1 -9.8 -10.6 -20.5
Change in current financing -0.8 -8.9 -1.0 -0.4 0.7
Dividends -0.2 -1.2 -6.7 -38.0 -39.0
Acquisition of own shares 0.0 -0.6 0.0 -1.8 -1.9
Share subscription 0.9 0.1 1.5 0.1 0.4
----------------------------------------------------------------
Net cash from financing -8.9 -20.7 -16.0 -50.7 -40.3
Change in cash and cash
equivalents and in other liquid
assets -25.6 -30.9 -62.9 -84.3 -65.9
Cash and cash equivalents and
other liquid assets at the
beginning of the period 108.0 152.3 142.0 203.7 203.7
Change in the fair value of
financial assets 0.1
Impact of translation differences
in exchange rates 5.8 2.2 9.1 4.2 4.1
Cash and cash equivalents and
other liquid assets at the end of
the period 88.2 123.6 88.2 123.6 142.0
----------------------------------------------------------------
Financial assets at fair value
through profit and loss 33.9 33.9 0.0 27.9
Cash and cash equivalents 54.3 -28.7 54.3 123.6 114.1
Cash and cash equivalents and
other liquid assets 88.2 -28.7 88.2 123.6 142.0
----------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
Inves-
Share ted
pre- free Trans- Re- Minor-
Share mium Legal equity lation tained ity
cap- re- re- re- differ- earn- inter- Total
EUR million ital serve serve serve ences ings Total est equity
---------------------------------------------------------------------------
Equity
1 April 2009 14.6 32.4 20.3 5.8 -21.6 117.5 169.0 8.1 177.1
Shares sub-
scribed with
stock options 0.1 0.1 0.1
Payment of
dividend 0.0 0.0 0.0
Acquisition
of own shares -0.6 -0.6 -0.6
Transfer, re-
tained
earnings 0.2 -0.2 0.0 0.0
Expenses from
share-based
incentive
programmes 0.3 0.3 0.3
Comprehensive
income for
the period 0.3 1.1 2.1 3.5 0.2 3.7
Changes for
the period 0.0 0.0 0.5 0.0 1.1 1.7 3.3 0.2 3.5
---------------------------------------------------------------------------
Equity
30 June 2009 14.6 32.4 20.8 5.8 -20.5 119.2 172.3 8.4 180.7
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 0.1 0.1 0.1
Payment of
dividend -37.9 -37.9 -37.9
Acquisition
of own shares -1.8 -1.8 -1.8
Transfer, re-
tained
earnings 0.2 -0.2 0.0 0.0
Expenses from
share-based
incentive
programmes 0.6 0.6 0.6
Comprehensive
income for
the period 0.1 1.9 5.9 7.9 0.7 8.6
Changes for
the period 0.0 0.0 0.3 0.0 1.9 -33.3 -31.1 0.7 -30.4
---------------------------------------------------------------------------
Equity
30 June 2009 14.6 32.4 20.8 5.8 -20.5 119.2 172.3 8.4 180.7
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
Other changes 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 2.9 56.6 -18.2 120.2 176.0 8.0 184.0
Equity
1 April 2010 14.6 0.0 2.9 57.2 -15.8 113.6 172.5 7.0 179.5
Shares sub-
scribed with
stock options 0.9 0.9 0.9
Payment of
dividend 0.0 0.0
Transfer, re-
tained
earnings 0.0 0.0
Expenses from
share-based
incentive
programmes 0.5 0.5 0.5
Minority
change 0.0 0.0
Comprehensive
income for
the period 0.2 4.4 -1.7 2.9 0.2 3.1
Changes for
the period 0.0 0.0 0.2 0.9 4.4 -1.2 4.3 0.2 4.5
---------------------------------------------------------------------------
Equity
30 June 2010 14.6 0.0 3.1 58.1 -11.4 112.4 176.8 7.2 184.0
Equity
1 Jan. 2010 14.6 0.0 2.9 56.6 -18.2 120.2 176.0 8.0 184.0
Shares sub-
scribed with
stock options 1.5 1.5 1.5
Payment of
dividend -5.9 -5.9 -0.8 -6.7
Transfer, re-
tained
earnings 0.0 0.0
Expenses from
share-based
incentive
programmes 0.7 0.7 0.7
Minority
change 0.0 0.0
Comprehensive
income for
the period 0.2 6.8 -2.6 4.4 4.4
Changes for
the period 0,0 0.0 0.2 1.5 6.8 -7.8 0.7 -0.8 -0.1
---------------------------------------------------------------------------
Equity
30 June 2010 14,6 0.0 3.1 58.1 -11.4 112.4 176.8 7.2 184.0
30 June 30 June 31 December
EUR million 2010 2009 2009
--------------------------------------------------------------------------------
Contingent liabilities
Other own obligations
Pledged assets 1.2 1.4 2.0
Project and other guarantees 55.3 53.0 55.0
Claims and litigations 3.0 0.0 3.0
For other parties
Pledged assets 0.2 0.1 0.0
Other obligations 0.1 0.1 0.1
Rent and lease obligations 105.1 119.3 111.0
Derivative instruments
Foreign exchange forward contracts,
nominal values 58.4 35.7 33.4
Foreign exchange forward contracts, 1.1 0.5 0.5
fair values -1.0 -0.9 -0.4
Currency options, nominal values
Purchased 0.1 1.8 0.2
Written 0.0 1.3 0.0
Currency options, fair values
Purchased 0.0 0.0 0.0
Written 0.0 -0.1 0.0
Interest rate swaps, nominal values 44.1 10.9 41.6
of which basis swaps 32.0 30.8
Interest rate swaps, fair values -0.8 -0.7 -0.7
RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------
The transactions with the associated
companies are determined on an arm's length
basis.
Sales to associated companies 0,0 0,1 0,1
Loans receivable from associated
companies 0,1 0,1 0,1
Accounts receivable from associated
companies 0,0 0,0 0,0
Shareholding and option rights of related parties
The members of the Board of Directors, the President and CEO and the members
of the Group Executive Committee owned on 30 June 2010 a total of 163 514
shares and 49 092 stock options (on 31 December 2009 a total of 179 676
shares, and 108 227 stock options 2004, included also the ownerships of the
Deputy to the President and CEO).
With the stock options the shareholding can be increased by 196 368 shares
equalling 0.3 per cent of the total number of shares and votes. The stock
option programme is described in the Financial Statements 2009.
Performance share plan 2008-2010
The Performance share plan includes three earning periods, which are the
calendar years 2008, 2009 and 2010. The rewards will be paid partly in the
company's shares and partly in cash in 2009, 2010 and 2011. Shares must be
held for a period of two years from the transfer date.
The Performance share plan is described in the verbal part of the Interim
report.
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
KEY FIGURES 2010 2009 2010 2009 2009
-------------------------------------------------------------
Earnings / share, EUR -0.02 0.04 -0.04 0.10 0.11
Corrected with dilution
effect -0.02 0.04 -0.04 0.10 0.11
Equity attributable to equity
holders of the parent
company/share, EUR 2.98 2.93 2.98
Return on investment, % p.a. 0.4 9.2 5.3
Return on equity, % p.a. -2.8 6.9 4.1
Equity ratio, % 39.7 40.0 40.9
Equity / Assets ratio, % 34.6 35.4 35.7
Net debt / Equity ratio
(gearing), % 14.3 -6.8 -10.5
Net debt, EUR million 26.3 -12.2 -19.3
Consulting and engineering,
EUR million 564.3 530.7 483.6
EPC, EUR million 5.3 3.4 2.1
Order stock total, EUR million 569.6 534.1 485.7
Capital expenditure, operating,
EUR million 1.4 1.1 2.9 2.9 4.8
Capital expenditure in shares,
EUR million 8.5 2.8 9.9 4.2 5.0
Personnel in Group companies
on average 6481 7446 7052
Personnel in Group companies
at the end of the period 6609 6946 6530
Personnel in associated
companies at the end of the
period 138 143 141
CHANGE IN INTANGIBLE ASSETS
EUR million
-------------------------------------------------------------
Book value at beginning of
period 5.5 6.1 5.4 6.2 6.2
Acquired companies 0.0 0.0 0.0 0.0 0.0
Capital expenditure 0.1 0.2 0.7 0.7 1.2
Decreases 0.0 0.0 0.0 0.0 0.0
Depreciation and expenses -0.4 -0.6 -1.0 -1.2 -2.2
Translation difference 0.1 0.0 0.2 0.0 0.2
-----------------------------
Book value at end of period 5.3 5.7 5.3 5.7 5.4
CHANGE IN TANGIBLE ASSETS
-------------------------------------------------------------
Book value at beginning of
period 16.4 18.4 16.6 18.8 18.8
Acquired companies 0.2 0.0 0.2 0.0 0.0
Capital expenditure 1.0 0.9 2.0 2.2 3.4
Decreases 0.0 -0.2 -0.1 -0.4 -0.4
Depreciation -1.5 -1.5 -2.9 -3.0 -6.0
Translation difference 0.4 0.2 0.7 0.2 0.8
-----------------------------
Book value at end of period 16.5 17.8 16.5 17.8 16.6
OPERATING SEGMENTS 1-6/ 1-6/ 1-12/
EUR million 2010 2009 2009
--------------------------------------------------------------------
NET SALES
Energy 83.9 89.9 173.9
Industry 75.9 96.9 162.0
Urban & Mobility 99.5 95.2 184.5
Water & Environment 39.2 43.0 86.5
Management Consulting 35.7 35.6 68.5
Unallocated 0.2 1.2 -1.9
------------------
Total 334.4 361.8 673.5
OPERATING PROFIT AND NET PROFIT FOR THE PERIOD
Energy 0.8 4.5 5.9
Industry -6.0 -1.3 -10.1
Urban & Mobility 6.8 7.2 14.9
Water & Environment 1.3 2.3 4.9
Management Consulting -1.3 -1.0 -0.4
Unallocated -2.0 -1.9 -3.6
------------------
Operating profit total -0.4 9.8 11.6
Financial income and expenses -0.9 0.6 0.8
------------------
Profit before taxes -1.3 10.4 12.4
Income taxes -1.3 -3.8 -4.4
------------------
Net profit for the period -2.6 6.6 8.0
Profit attributable to:
Equity holders of the parent company -2.6 5.9 6.5
Minority interest 0.0 0.7 1.5
OPERATING PROFIT %
Energy 1.0 5.0 3.4
Industry -7.9 -1.3 -6.2
Urban & Mobility 6.8 7.6 8.1
Water & Environment 3.3 5.3 5.7
Management Consulting -3.6 -2.8 -0.7
------------------
Group -0.1 2.7 1.7
OPERATING PROFIT, EXCLUDING RESTRUCTURING COSTS
Energy 2.0 5.3 7.8
Industry -5.4 4.0 -3.5
Urban & Mobility 6.9 7.6 15.5
Water & Environment 1.3 2.4 5.1
Management Consulting 0.9 0.1 1.2
Unallocated -2.0 -1.9 -3.6
------------------
Operating profit total 3.8 17.5 22.5
OPERATING PROFIT, EXCLUDING RESTRUCTURING COSTS %
Energy 2.4 5.9 4.5
Industry -7.1 4.1 -2.2
Urban & Mobility 6.9 8.0 8.4
Water & Environment 3.3 5.6 6.0
Management Consulting 2.5 0.3 1.8
------------------
Group 1.1 4.8 3.3
ORDER STOCK
Energy 191.2 178.5 171.0
Industry 82.5 57.5 39.3
Urban & Mobility 199.6 202.0 194.8
Water & Environment 72.5 75.5 62.3
Management Consulting 23.8 19.3 18.0
Unallocated 0.0 1.3 0.3
------------------
Total 569.6 534.1 485.7
Consulting and engineering 564,3 530.7 483.6
EPC 5.3 3.4 2.1
------------------
Total 569.6 534.1 485.7
PERSONNEL, END OF THE PERIOD
Energy 1463 1468 1402
Industry 1842 2122 1790
Urban & Mobility 1829 1817 1858
Water & Environment 881 927 908
Management Consulting 452 493 451
Unallocated 142 119 121
------------------
Total 6609 6946 6530
NET SALES BY AREA
The Nordic countries 101.2 104.3 194.4
Other Europe 147.4 171.1 323.7
Asia 25.2 29.9 54.7
North America 14.1 11.2 20.0
South America 31.6 29.7 50.3
Other 14.9 15.6 30.4
------------------
Total 334.4 361.8 673.5
OPERATING SEGMENTS 7-9/ 10-12/ 1-3/ 4-6/
EUR million 2008 2008 2009 2009
-------------------------------------------------------------------
NET SALES
Energy 46.6 50.2 48.3 41.6
Industry 63.5 67.3 51.3 45.6
Urban & Mobility 42.8 48.1 48.9 46.3
Water & Environment 20.3 25.3 21.0 22.0
Management Consulting 20.1 24.1 17.8 17.8
Unallocated 0.6 -1.4 0.5 0.7
-------------------------
Total 193.9 213.6 187.8 174.0
OPERATING PROFIT AND NET PROFIT FOR THE
PERIOD
Energy 4.6 10.0 3.2 1.3
Industry 12.0 9.8 -0.9 -0.4
Urban & Mobility 3.8 4.6 3.8 3.4
Water & Environment 0.3 1.8 0.8 1.5
Management Consulting 2.9 2.0 -0.6 -0.4
Unallocated -1.7 -1.5 -1.1 -0.8
-------------------------
Operating profit total 21.9 26.7 5.2 4.6
Financial income and expenses 1.3 0.2 1.1 -0.5
-------------------------
Profit before taxes 23.2 26.9 6.3 4.1
Income taxes -7.5 -6.6 -2.0 -1.8
-------------------------
Net profit for the period 15.7 20.3 4.3 2.3
Profit attributable to:
Equity holders of the parent company 15.4 19.8 3.8 2.1
Minority interest 0.3 0.5 0.5 0.2
OPERATING PROFIT %
Energy 9.9 19.9 6.6 3.1
Industry 18.9 14.5 -1.8 -0.9
Urban & Mobility 8.9 9.7 7.8 7.3
Water & Environment 1.5 7.3 3.8 6.8
Management Consulting 14.4 8.5 -3.4 -2.2
-------------------------
Group 11.3 12.5 2.8 2.6
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS
Energy 4.6 10.0 3.2 2.1
Industry 12.0 9.8 1.5 2.5
Urban & Mobility 3.8 4.6 4.1 3.5
Water & Environment 0.3 1.8 0.8 1.6
Management Consulting 2.9 2.0 -0.2 0.3
Unallocated -1.7 -1.5 -1.1 -0.8
-------------------------
Operating profit, excluding restructuring
costs, total 21.9 26.7 8.3 9.2
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS %
Energy 9.9 19.9 6.6 5.0
Industry 18.9 14.5 2.9 5.5
Urban & Mobility 8.9 9.7 8.4 7.6
Water & Environment 1.5 7.3 3.8 7.3
Management Consulting 14.4 8.5 -1.1 1.7
-------------------------
Group 11.3 12.5 4.4 5.3
ORDER STOCK
Energy 199.8 182.0 180.4 178.5
Industry 109.1 82.4 66.8 57.5
Urban & Mobility 179.0 176.4 198.2 202.0
Water & Environment 78.3 76.8 78.8 75.5
Management Consulting 27.9 21.1 21.6 19.3
Unallocated 0.4 0.4 0.6 1.3
-------------------------
Total 594.5 539.1 546.4 534.1
Consulting and engineering 592.5 538.6 539.8 530.7
EPC 2.0 0.5 6.6 3.4
-------------------------
Total 594.5 539.1 546.4 534.1
OPERATING SEGMENTS 7-9/ 10-12/ 1-3/ 4-6/
EUR million 2009 2009 2010 2010
-------------------------------------------------------------------
NET SALES
Energy 40.0 44.0 42.8 41.1
Industry 31.5 33.6 35.8 40.1
Urban & Mobility 42.6 46.7 47.5 52.0
Water & Environment 20.6 22.9 19.3 19.9
Management Consulting 15.1 17.8 17.2 18.5
Unallocated 0.4 -3.5 0.1 0.1
-------------------------
Total 150.2 161.5 162.7 171.7
OPERATING PROFIT AND NET PROFIT FOR THE
PERIOD
Energy 0.6 0.8 0.4 0.4
Industry -3.6 -5.2 -4.3 -1.7
Urban & Mobility 3.7 4.0 3.6 3.2
Water & Environment 1.1 1.5 0.5 0.8
Management Consulting -0.1 0.7 0.3 -1.6
Unallocated -0.6 -1.1 -1.0 -1.0
-------------------------
Operating profit total 1.1 0.7 -0.4 0.0
Financial income and expenses -0.3 0.5 -0.2 -0.7
-------------------------
Profit before taxes 0.8 1.2 -0.6 -0.7
Income taxes -0.8 0.2 -0.5 -0.8
-------------------------
Net profit for the period 0.0 1.4 -1.1 -1.5
Profit attributable to:
Equity holders of the parent company -0.4 1.0 -0.9 -1.7
Minority interest 0.4 0.4 -0.2 0.2
OPERATING PROFIT %
Energy 1.5 1.9 1.0 1.0
Industry -11.4 -15.5 -12.0 -4.2
Urban & Mobility 8.7 8.6 7.6 6.2
Water & Environment 5.3 6.7 2.6 4.0
Management Consulting -0.7 3.6 1.7 -8.6
-------------------------
Group 0.7 0.4 -0.2 0.0
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS
Energy 1.3 1.2 1.4 0.6
Industry -2.2 -5.3 -4.1 -1.3
Urban & Mobility 3.7 4.2 3.6 3.3
Water & Environment 1.2 1.6 0.5 0.8
Management Consulting -0.1 1.2 0.3 0.6
Unallocated -0.6 -1.1 -1.0 -1.0 -------------------------
Operating profit, excluding restructuring
costs, total 3.3 1.8 0.9 2.8
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS %
Energy 3.3 2.7 3.4 1.5
Industry -7.0 -15.8 -11.5 -3.2
Urban & Mobility 8.7 9.0 7.6 6.3
Water & Environment 5.8 7.0 2.6 4.0
Management Consulting -0.7 6.7 1.7 3.2
-------------------------
Group 2.2 1.1 0.6 1.6
ORDER STOCK
Energy 173.6 171.0 175.5 191.2
Industry 48.7 39.3 69.6 82.5
Urban & Mobility 202.4 194.8 193.6 199.6
Water & Environment 69.0 62.3 70.5 72.5
Management Consulting 20.1 18.0 20.5 23.8
Unallocated 0.1 0.3 0.0 0.0
-------------------------
Total 513.9 485.7 529.7 569.6
Consulting and engineering 510,8 483.6 527.9 564.3
EPC 3.1 2.1 1.8 5.3
-------------------------
Total 513.9 485.7 529.7 569.6
CALCULATION OF KEY FIGURES
Return on investment, ROI %
profit before taxes + interest and other financial expenses
100 x --------------------------------------------------------------
balance sheet total - non-interest bearing liabilities
(quarterly average)
Return on equity, ROE %
net profit
100 x -------------------------------
equity (quarterly average)
Equity ratio %
equity
100 x ------------------------------------------------
balance sheet total - advance payments received
Equity/assets ratio %
equity
100 x --------------------------
balance sheet total
Net debt/equity ratio, gearing %
interest-bearing liabilities - cash and cash equivalents
100 x ---------------------------------------------------------
equity
Earnings/share, EPS
net profit attributable to the equity holders of the parent company
--------------------------------------------------------------------
issue-adjusted average number of shares for the fiscal year
Equity attributable to the equity holders of the parent company/share
equity attributable to the equity holders of the parent company
-----------------------------------------------------------------
issue-adjusted number of shares at the end of the fiscal year
ACQUISITIONS
Acquisition Acquired
Name and business date interest, %
ERT-EROTERV zrt 14 June 2010 97.8
The company's product range comprises
nuclear
and conventional power plant engineering,
services for radioactive waste related
projects as well as full scale designing
services in the area of transmission and
distribution. The company is based in
Budapest, Hungary, and has a staff of 170.
PRG-Tec Oy 1 February 2010 100
The company specialises in hydrological
and
geophysical measurements. The clientele
comprises of nuclear waste management
companies in Finland and Sweden. The
company
is based in Espoo, Finland, employing
eight
persons.
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.
Shanghai Kang Dao Construction Company Ltd 1 March 2009 100
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.
Aggregate figures for the above
acquisitions
EUR million 2010 2009
-------------------------------------------------------------------------------
Purchase price
Fixed price, paid 9.9 4.2
Earnout estimate 0.0
Total 9.9 4.2
Price allocation
Equity 1.5 0.2
Fair value adjustments:
Client
relationship 0.0
Order stock 0.0
Total 1.5 0.2
Goodwill
(remaining) 8.4 4.0
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
end
of June 2010 / December 2009 0.0 0.0
Sales volume on a 12-month calendar year
basis 13.0 3.0
Operating profit on 12-month calendar year
basis 0.9 0.7
Impact on the Pöyry Group's number of
personnel 178 37
Impact on the Pöyry Group's assets and
liabilities
2010 2009
Book Book
values values
at Fair Adjus- at Fair Adjus-
acqui- value ted acqui- value ted
sition adjust- IFRS sition adjust- IFRS
EUR million date ments values date ments values
Tangible assets 0.2 0.2
Work in progress 0.5 0.5
Accounts
receivable 1.2 1.2 0.2 0.2
Other receivable 0.2 0.2
Cash and cash
equivalents 1,3 1.3 0.2 0.2
Assets total 3.4 0.0 3.4 0.4 0.0 0.4
Other current
liabilities 1.9 1.9 0.2 0.2
Liabilities total 1.9 0.0 1.9 0.2 0.0 0.2
Net identifiable assets
and
liabilities 1.5 0.0 1.5 0.2 0.0 0.2
Total cost of business
combinations 9.9 4.2
Goodwill 8.4 4.0
Consideration paid,
satisfied in cash 9.8 4.2
Cash acquired 1.3 0.2
Net cash outflow 8.5 4.0
Unpaid 0.1
Based on the purchase agreements the companies acquired during the period
under review are consolidated 100% into the Pöyry Group as of the end of the
month when acquired.
The figures are
preliminary.
[HUG#1433378]
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