2010-10-28 07:30:00 CEST
2010-10-28 07:32:09 CEST
REGULATED INFORMATION
Pöyry - Interim report (Q1 and Q3)
Interim Report 1 January - 30 September 2010
PÖYRY PLC Interim Report 28 October 2010 at 8:30 a.m.
ACTIONS TAKEN TO IMPROVE PROFITABILITY
KEY FIGURES
7-9/ 7-9/ Change, 1-9/ 1-9/ Change,
Pöyry Group 2010 2009 % 2010 2009 % 2009
Order stock at end of
period, EUR million 543.7 513.9 5.8 543.7 513.9 5.8 485.7
Net sales total,
EUR million 161.2 150.2 7.3 495.6 512.0 -3.2 673.5
Operating profit
excluding re-
structuring costs,
EUR million 0.1 3.3 -97.0 3.8 20.8 -81.7 22.5
Operating margin
excluding re-
structuring costs, % 0.1 2.2 0.8 4.1 3.3
Operating profit,
EUR million 0.1 1.1 -90.9 -0.3 10.9 na 11.6
Operating margin, % 0.1 0.7 -0.1 2.1 1.7
Profit before taxes,
EUR million -0.8 0.8 na -2.1 11.2 na 12.4
Earnings per share,
basic, EUR -0.04 -0.01 na -0.08 0.09 na 0.11
Earnings per share,
diluted, EUR -0.04 -0.01 na -0.08 0.09 na 0.11
Gearing, % 20.6 2.0 -10.5
Return on investment,
% (R12M) 0.5 6.8 5.3
Average number of
personnel during
period, calculated as
full time equivalents
(FTE) 6540 7208 -9.3 7052
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.
JANUARY-SEPTEMBER 2010 HIGHLIGHTS
- The Group's order stock at the end of the reporting period increased by 5.8
per cent from the year before to EUR 543.7 million (513.9). The order stock
increased especially in the Industry business group. The order stock decreased
4.5 per cent from the end of the second quarter of 2010 but was still 11.9 per
cent higher than at year-end 2009.
- Sales of EUR 495.6 million were 3.2 per cent below the previous year (512.0).
- Operating profit excluding restructuring costs was EUR 3.8 million (20.8)
corresponding to 0.8 per cent (4.1) of sales.
- Restructuring costs during the reporting period totalled EUR 4.1 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 -55.8 million (-50.3). Net cash
from capital expenditure on acquisitions was EUR -9.0 million (-10.2).
- ETV-Eröterv, Hungary, was acquired in June to enhance Pöyry's strong position
in the nuclear power segment.
- The outlook for the full year 2010 operating profit was reduced on 14 October
2010.
- Pöyry announced its key strategic priorities and the launch of the operational
excellence programme on 14 October 2010.
- Pöyry announced on 28 October 2010 that the targeted annualised cost savings
regarding implementation of the efficiency improvement measures in Finland are
EUR 10-15 million. The related restructuring costs are estimated to be in the
range of EUR 6-10 million including the possible additional costs from earlier
reduction measures. Implementation in Finland is expected to take about 6-9
months.
PROSPECTS
Group level guidance issued on 14 October 2010:
The Pöyry Group's operating profit for 2010, excluding restructuring costs, is
estimated to decline clearly from the comparable figure in 2009. The Group's net
sales for the full year 2010 are expected to remain stable.
Previous Group level guidance in the second-quarter 2010 interim report:
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 the 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.
COMMENTS FROM HEIKKI MALINEN, PRESIDENT AND CEO:"During the summer we finalised our key strategic priorities for 2010-2013. We
aim for increased focus both in businesses and geographies, increased efficiency
and cost effectiveness, more value-added services and capabilities with special
emphasis on larger project scopes. We will actively manage our business
portfolio to strengthen Pöyry's competitive position in the priority segments
and geographies. We have also initiated projects to support our key growth
enablers. The projects focus on improved project execution capabilities,
especially for large projects, improved sales skills and working as One Pöyry.
Our market environment is undergoing changes, which include, among other,
transfer of private sector investments from mature to emerging markets,
weakening public sector demand and overcapacity in certain markets leading to
increased price competition. In 2009 Pöyry started a process to adapt capacity
in Finland. Since beginning of 2009 our capacity in Finland has reduced
permanently by about 400 people and additionally a capacity corresponding to
about 200 persons is currently temporarily laid off.
To address the continued change in the market situation, Pöyry has launched a
Group-wide operational excellence programme. The programme aims at further
improving the efficiency and quality of operations. The plan includes
streamlining of operations and office network, reducing administration as well
as reducing non-billable activities. Implementation of the efficiencyimprovement measures in Finland is expected to take about 6-9 months. The
planned reduction in capacity of the currently active workforce is estimated to
correspond to 250-350 persons. The targeted annualised cost savings are EUR
10-15 million. In addition, the future outlook for the workforce of about 200
persons temporarily laid off will be carefully considered. The related
restructuring costs are estimated to be in the range of EUR 6-10 million
including the possible additional costs from earlier reduction measures. The
majority of the restructuring costs in Finland is expected to be recorded in the
fourth quarter of 2010. Pöyry is highly committed to serving the Finnish market.
Even after the estimated capacity reductions Finland will constitute one of our
core markets with strong service capabilities employing around 2000 persons.
The third-quarter operating profit was unsatisfactory and we have reduced our
outlook for the full year operating profit. The main reasons behind the reduced
outlook are delays in start-up of awarded major projects, delays in final
project investment decisions and low activity level in certain markets.
Structural overcapacity in Finland primarily relates to resources which have
been allocated for forest industry related export business to mature markets.
The Pöyry Group's operating profit for 2010, excluding restructuring costs, is
estimated to decline clearly from the comparable figure in 2009. The Group's net
sales for the full year 2010 are expected to remain stable."
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 28 OCTOBER 2010
A news conference in Finnish for the press, investors and analysts will be
arranged at 12 p.m. Finnish time at Restaurant Savoy, Eteläesplanadi 14,
Helsinki, Finland.
An international conference call and webcast in English for investors and
analysts will begin at 5:00 p.m. Finnish time (EEST).
10:00 a.m. US EDT (New York)
3:00 p.m. GMT (London)
4:00 p.m. CET (Paris)
5:00 p.m. EEST (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 7,000 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 SEPTEMBER 2010
Figures in brackets, unless otherwise stated, refer to the same period the
previous year. 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
The growth in exports and industrial production has stimulated the gradual
upturn in the world economy during 2010. The growth in Western Europe,
especially in Germany, has been even more positive than expected. On the other
hand, the recent development in the US has been disappointing. Economic growth
e.g. in China and Brazil has been robust. Various leading composite and
confidence indicators signal ongoing but slower growth in economic activity.
The positive projections on the future recovery in the world economy and
improving industrial activity have led to increasing prices in certain
commodities and raw materials. Although the increase in pulp prices eased up
during the third quarter, the price level can still be considered high. During
2010, the quarterly price of crude oil has remained fairly stable after a clear
increase in 2009. The general price development of metals and minerals has been
relatively robust during the year. The increase in steel prices, however,
stabilised during the third quarter.
Despite these positive signs new investments have not yet started on a larger
scale. Compared with the previous year, 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.
The financial crisis and regulatory uncertainty have prolonged the investment
decision process.
The 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 remained strong but the construction
sector, particularly the commercial and the industrial sectors, continued to be
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 period 1-9/2010 1-9/2009 Change, % 2009
Consulting and engineering 538.5 510.8 5.4 483.6
EPC 5.2 3.1 67.7 2.1
Total 543.7 513.9 5.8 485.7
The Group's order stock at the end of the reporting period totalled EUR 543.7
million (513.9) representing growth of 5.8 per cent compared with the year
before. The order stock decreased 4.5 per cent from EUR 569.6 million at the end
of the second quarter of 2010. Since year-end 2009, however, the order stock has
increased by 11.9 per cent. The breakdown by business group for the order stock
at the end of the reporting period was as follows: Energy EUR 183.4 million (34
per cent of the total order stock), Industry EUR 72.5 million (13 per cent),
Urban & Mobility EUR 196.1 million (36 per cent), Water & Environment EUR 70.6
million (13 per cent) and Management Consulting EUR 21.1 million (4 per cent).
ORDER INTAKE
The Group's order intake in January-September 2010 increased from the
corresponding period in 2009. However, due to lack of larger projects and
clients' prolonged decision making, orders received during the third quarter
declined from the second quarter of 2010.
Within the Energy business group the January-September 2010 order intake was
relatively stable compared with the corresponding period the year before. Order
intake in the third quarter of 2010 was higher than in the third quarter of
2009 which marked the trough in orders received but lower, however, than in the
second quarter of 2010. In the Industry business group the January-September
order intake was at a significantly higher level than the year before, even if
the third quarter order intake was at a lower level than in the second quarter
of 2010. In the Urban & Mobility business group the order intake during the
reporting period was lower than in the corresponding period the year before when
demand for road and rail-bound transportation systems was particularly brisk.
The third-quarter 2010 order intake declined from the relatively high number in
the second quarter when a number of major railway construction projects were
booked in. The Water & Environment business group's order intake in January-
September 2010 was higher than the year before. Order inflow in the third
quarter declined from the second quarter reflecting the challenging market
situation in the main markets. The improvement in industrial activity has been
reflected in the Management Consulting business group's assignments. Order
intake in January-September 2010 was higher than the year before even if order
intake in the third quarter declined from the second quarter of 2010.
GROUP SALES
Share
of total
Net sales by business 7-9/ 7-9/ Change, 1-9/ 1-9/ Change, sales, %
group, EUR million 2010 2009 % 2010 2009 % 1-9/2010
Energy 44.3 40.0 10.8 128.2 129.9 -1.3 25.9
Industry 37.2 31.5 18.1 113.1 128.4 -11.9 22.8
Urban & Mobility 42.6 42.6 0.0 142.1 137.8 3.1 28.7
Water & Environment 18.9 20.6 -8.3 58.1 63.6 -8.6 11.7
Management Consulting 18.0 15.1 19.2 53.7 50.7 5.9 10.8
Unallocated 0.2 0.4 -50.0 0.4 1.6 -75.0 0.1
Total 161.2 150.2 7.3 495.6 512.0 -3.2 100.0
Consolidated net sales in the reporting period fell by 3.2 per cent compared
with the year before to EUR 495.6 million (512.0). The sales volume declined
most in the Industry and Water & Environment business groups. Sales in the
Energy business group were fairly stable. Sales in the Urban & Mobility and
Management Consulting business groups improved compared with the previous year.
Third-quarter net sales increased by 7.3 per cent from the year before and
amounted to EUR 161.2 million (150.2). Sales were higher in the Energy, Industry
and Management Consulting business groups. Sales were stable in the Urban &
Mobility business group and declined in the Water & Environment business group.
The Group's net sales declined by 6.1 per cent from the second quarter as sales
are seasonally lower in the third quarter.
January-September 2010 sales were clearly higher in North America and also
increased in South America compared with the corresponding period the year
before. Sales in the Nordic countries were relatively stable but declined in
other European countries 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
7-9/ 7-9/ Change, 1-9/ 1-9/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 183.4 173.6 5.6 183.4 173.6 5.6 171.0
Sales, EUR million 44.3 40.0 10.8 128.2 129.9 -1.3 173.9
Operating profit
excl. restructuring
costs, EUR million 0.8 1.3 -38.5 2.8 6.6 -57.6 7.8
Operating margin
excl. restructuring
costs, % 1.8 3.3 2.2 5.1 4.5
Operating profit,
EUR million 1.0 0.6 66.7 1.8 5.1 -64.7 5.9
Operating margin, % 2.3 1.5 1.4 3.9 3.4
Personnel at end of
period 1452 1434 1.3 1452 1434 1.3 1402
1-9/2010
The order stock at the end of the reporting period increased by 5.6 per cent
from the year before and totalled EUR 183.4 million (173.6). The order stock
decreased 4.1 per cent from the end of the second quarter of 2010. The order
stock remained, however, 7.3 per cent higher than at the year-end 2009. In March
the business group signed 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 the continued postponement of the financial closure of
the projects.
January-September 2010 net sales were stable at EUR 128.2 million (129.9). The
net sales during the reporting period have been supported by the solid
development of the order stock especially in the hydropower business area. Pöyry
has also been awarded several smaller assignments in the renewables and power &
fuels business areas. The impacts of the global financial crises have been
delaying major investment decisions in the energy sector.
January-September 2010 operating profit before EUR 1.0 million restructuring
costs amounted to EUR 2.8 million (6.6) and the operating margin remained at an
unsatisfactory level at 2.2 per cent of sales (5.1). Low profitability in the
oil & gas and renewables segments is still burdening profitability, even after
actions to adjust capacity to demand and streamline operations have been taken.
Operating profit after the restructuring costs was EUR 1.8 million (5.1) or 1.4
per cent of sales (3.9).
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. ETV-Eröterv has been consolidated in Pöyry's reporting as
of 1 July 2010 (balance sheet as at 30 June 2010).
7-9/2010
Order inflow in the third quarter was lower than during the first and second
quarters of the year. This reflected the continued uncertainty among clients
about launching larger investments
Net sales for the third quarter of 2010 totalled EUR 44.3 million (40.0) which
is 10.8 per cent higher than in the corresponding period the year before. Net
sales increased 7.8 per cent from EUR 41.1 million in the second quarter as the
positive development of the order stock is beginning to be visible in the sales
volumes.
The third-quarter 2010 operating profit was EUR 1,0 million (EUR 1.3 million
excluding and EUR 0.6 million including restructuring costs) and the operating
margin was 2,3 per cent of sales (3.3 excluding and 1.5 including restructuring
costs). The profitability remained low mainly due to the oil & gas and
renewables segments. However, actions to improve the situation have been taken.
Industry
7-9/ 7-9/ Change, 1-9/ 1-9/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 72.5 48.7 48.9 72.5 48.7 48.9 39.3
Sales, EUR million 37.2 31.5 18.1 113.1 128.4 -11.9 162.0
Operating profit
excl. restructuring
costs, EUR million -1.0 -2.2 na -6.4 1.8 na -3.5
Operating margin
excl. restructuring
costs, % -2.7 -7.0 -5.7 1.4 -2.2
Operating profit,
EUR million -0.8 -3.6 na -6.8 -4.9 na -10.1
Operating margin, % -2.2 -11.4 -6.0 -3.8 -6.2
Personnel at end of
period 1952 1864 4.7 1952 1864 4.7 1790
1-9/2010
The order stock at the end of the reporting period increased by 48.9 per cent
from the year before and totalled EUR 72.5 million (48.7). The order stock
decreased 12.1 per cent from the end of the second quarter of 2010 reflecting
lower order intake during the third quarter. The order stock was, however, 84.5
per cent higher than at year-end 2009.
January-September 2010 net sales were EUR 113.1 million (128.4) representing a
fall of 11.9 per cent as the comparison figure during the first half of 2009 was
particularly high due to a couple of large projects being in their final
execution phases during the corresponding period of 2009. The good development
in the order stock during the first part of the year is impacting sales with a
lag.
January-September 2010 operating profit before restructuring costs of EUR 0.4
million was EUR -6.4 million (1.8) and the operating margin was -5.7 per cent of
sales (1.4). The lack of larger projects has been reflected in low activity
levels and profitability. To improve order inflow, significant investments have
been made in sales and proposal development. The Industry business group has
strengthened the detail engineering capabilities in emerging markets, including
Brazil, Poland and China. Operating profit after restructuring costs was EUR
-6.8 million (-4.9) or -6.0 per cent of sales (‑3.8).
7-9/2010
Order inflow in the third quarter was lower than during the first and second
quarters of the year. This reflected the continued uncertainty among clients
about launching larger investments.
Net sales for the third quarter of 2010 were EUR 37.2 million (31.5)
representing an increase of 18.1 per cent. Net sales decreased, however, by 7.2
per cent from the second quarter reflecting the summer vacation period.
The third-quarter 2010 operating profit amounted to EUR -0,8 million (EUR -2,2
million excluding and EUR -3,6 million including restructuring costs) and the
operating margin was -2,2 per cent of sales (-7.0 excluding and -11.4 including
restructuring costs). The low activity levels, which are partly explained by the
preparations for projected order inflow, and the lack of larger projects
continued to burden profitability, and the actions to adjust capacity to demand
were not yet fully visible.
Urban & Mobility
7-9/ 7-9/ Change, 1-9/ 1-9/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 196.1 202.4 -3.1 196.1 202.4 -3.1 194.8
Sales, EUR million 42.6 42.6 0.0 142.1 137.8 3.1 184.5
Operating profit
excl. restructuring
costs, EUR million 1.6 3.7 -56.8 8.5 11.3 -24.8 15.5
Operating margin
excl. restructuring
costs, % 3.8 8.7 6.0 8.2 8.4
Operating profit,
EUR million 1.6 3.7 -56.8 8.4 10.9 -22.9 14.9
Operating margin, % 3.8 8.7 5.9 7.9 8.1
Personnel at end of
period 1779 1861 -4.4 1779 1861 -4.4 1858
1-9/2010
The order stock at the end of the reporting period was fairly stable compared
with the year before and totalled EUR 196.1 million (202.4). The order stock was
also stable compared both with the end of the second quarter and with year-end
2009.
The January-September 2010 net sales increased by 3.1 per cent from the year
before and totalled EUR 142.1 million (137.8).
The January-September 2010 operating profit before restructuring costs of EUR
0.1 million was EUR 8.5 million (11.3) and the operating margin was 6.0 per cent
of sales (8.2). The minor restructuring items in 2010 relate mainly to the
combining of the former Transportation and Construction Services business
groups. The profitability was burdened by lower activity levels in certain
markets, 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. Operating profit after restructuring costs was EUR
8.4 million (10.9) or 5.9 per cent of sales (7.9).
7-9/2010
Order inflow in the third quarter was lower than during the second quarter of
2010 when a couple of major projects were booked from e.g. China and Mexico.
Net sales for the third quarter at EUR 42.6 million (42.6) were stable compared
with the year before. Sales declined 18.1 per cent from the second quarter of
2010.
The third-quarter 2010 operating profit was EUR 1.6 million (3.7) and the
operating margin was 3.8 per cent of sales (8.7). The profitability was burdened
by lower activity levels in certain markets, 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.
Water & Environment
7-9/ 7-9/ Change, 1-9/ 1-9/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 70.6 69.0 2.3 70.6 69.0 2.3 62.3
Sales, EUR million 18.9 20.6 -8.3 58.1 63.6 -8.6 86.5
Operating profit
excl. restructuring
costs, EUR million 0.0 1.2 na 1.3 3.6 -63.9 5.1
Operating margin
excl. restructuring
costs, % 0.0 5.8 2.2 5.7 6.0
Operating profit,
EUR million 0.0 1.1 na 1.3 3.4 -61.8 4.9
Operating margin, % 0.0 5.3 2.2 5.3 5.7
Personnel at end of
period 867 909 -4.6 867 909 -4.6 908
1-9/2010
The order stock at the end of the reporting period increased by 2.3 per cent
from the year before and totalled EUR 70.6 million (69.0). The order stock
decreased by 2.6 per cent from the end of the second quarter of 2010 but was,
however, 13.3 per cent higher than at year-end 2009.
January-September 2010 net sales decreased by 8.6 per cent from the year before
and totalled EUR 58.1 million (63.6) reflecting the difficult market environment
especially in the main markets in Finland and Germany.
The January-September 2010 operating profit amounted to EUR 1.3 million (EUR
3.6 million excluding and EUR 3.4 million including restructuring costs) and the
operating margin was 2.2 per cent of sales (5.7 per cent excluding and 5.3 per
cent including restructuring costs). Profitability has been burdened mainly by
the difficult business environment in the municipal sector and low activity
level in Finland.
7-9/2010
Order inflow in the third quarter was lower than during the first and second
quarters of the year. This reflects the continuing difficult business
environment in the main markets.
Net sales for the third quarter of 2010 were EUR 18.9 million (20.6)
representing a fall of 8.3 per cent. Net sales also decreased by 5.0 per cent
from the second quarter.
Operating profit for the third quarter of 2010 amounted to EUR 0.0 million (EUR
1.2 million excluding and EUR 1.1 million including restructuring costs) and the
operating margin was 0.0 per cent of sales (5.8 excluding and 5.3 including
restructuring costs). Profitability remained below the targeted levels due to
the difficult market situation. Actions have been taken to adjust capacity to
demand.
Management Consulting
7-9/ 7-9/ Change, 1-9/ 1-9/ Change,
2010 2009 % 2010 2009 % 2009
Order stock,
EUR million 21.1 20.1 5.0 21.1 20.1 5.0 18.0
Sales, EUR million 18.0 15.1 19.2 53.7 50.7 5.9 68.5
Operating profit
excl. restructuring
costs, EUR million -0.8 -0.1 na 0.1 0.0 na 1.2
Operating margin
excl. restructuring
costs, % -4.4 -0.7 0.2 0.0 1.8
Operating profit,
EUR million -1.0 -0.1 na -2.3 -1.1 na -0.4
Operating margin, % -5.6 -0.7 -4.3 -2.2 -0.7
Personnel at end of
period 476 496 -4.0 476 496 -4.0 451
1-9/2010
The order stock at the end of the reporting period increased by 5.0 per cent
from the year before and totalled EUR 21.1 million (20.1). The order stock
decreased 11.3 per cent from the end of the second quarter of 2010 reflecting
the seasonally quiet summer period in order intake. The order stock was,
however, 17.2 per cent higher than at year-end 2009.
January-September 2010 net sales at EUR 53.7 million were 5.9 per cent higher
than the year before (50.7) reflecting the gradually improving market situation
as well as the impact of the measures taken to develop the business.
The January-September 2010 operating profit before restructuring costs of EUR
2.4 million was fairly stable at EUR 0.1 million (0.0) and the operating margin
was 0.2 per cent of sales (0.0). In the second quarter, an action programme was
started to reorganise the Management Consulting business group into a more
unified an integrated unit which resulted in notable restructuring costs.
Operating profit after restructuring costs was EUR -2.3 million (-1.1) or -4.3
per cent of sales (-2.2).
7-9/2010
Order inflow in the third quarter was lower than during the first and second
quarters of the year.
The net sales for the third quarter of 2010 were EUR 21.1 million (20.1)
representing an increase of 5.0 per cent reflecting the good development in the
order stock. Net sales were relatively stable compared with the second quarter.
The third-quarter 2010 operating profit before EUR 0.2 million restructuring
costs amounted to EUR -0.8 (‑0.1) million and the operating margin was -4.4 per
cent of sales (-0.7). Underlying profitability is still unsatisfactory. The
impact of the action programme started in the second quarter is expected to be
realised with a lag. Operating profit after the restructuring costs was EUR -1.0
million (-0.1) or -5.6 per cent of sales (-0.7).
Group overhead
Unallocated costs in January-September 2010 were EUR 2.6 million (2.5),
representing 0.5 per cent of sales (0.5).
GROUP FINANCIAL RESULT
The consolidated operating loss for the reporting period, including
restructuring costs of EUR 4.1 million, totalled EUR -0.3 million (10.9). The
consolidated operating margin, including restructuring costs, declined to -0.1
per cent from 2.1 per cent of sales the year before. Profitability in January-
September 2010 declined in all business groups.
Net financial items were EUR -1.8 million (0.3).
Profit before taxes was negative and totalled EUR -2.1 million (11.2).
Income taxes were EUR -2.6 million (-4.6).
Net profit for the reporting period was EUR -4.7 (6.6) million.
Earnings per share were EUR -0.08 (0.09).
BALANCE SHEET
The consolidated balance sheet is strong. The consolidated balance sheet
amounted to EUR 510.9 million at the end of the reporting period, which is EUR
4.5 million lower than at year-end 2009 (515.4) and EUR 20.4 million lower than
at the end of June 2010. Total equity at the end of the reporting period was EUR
180.3 million (179.6). Total equity attributable to equity holders of the parent
company was EUR 173.3 million (172.0) or EUR 2.92 per share (2.92).
The return on equity (ROE) was -3.5 per cent (4.6). The return on investment
(ROI) was 0.5 per cent (6.8).
CASH FLOW AND FINANCING
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 77.6 (128.9)
million. In addition to these, the Group had unused long-term overdraft
facilities amounting to EUR 93.7 million.
Net cash from operating activities in the reporting period was EUR -42.2 million
(-36.7), representing EUR ‑0.72 per share. Net cash before financing activities
was EUR -55.8 million (-50.3). The cash flow includes a net amount of EUR -9.0
million (-10.2) from acquisitions.
The cash flow reflects the build-up in net working capital and delays in some
project payments. A material part of the latter relates to certain public sector
infrastructure projects in Venezuela. The public sector client has certified the
debt in full and is arranging ways of payment. During the more than a decade
that Pöyry has participated in public sector projects in Venezuela the country
has always met its payment obligations in spite of some delays.
Cash flow is expected to improve towards the end of the year.
Net debt at the end of the reporting period totalled EUR 37.2 million (3.6). The
net debt/equity ratio (gearing) was 20.6 per cent (2.0). The equity ratio was
39.9 per cent (39.1).
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 15.9
million, of which EUR 4.8 million consisted mainly of computer software, systems
and hardware, and EUR 11.1 million was due to acquisitions.
Capital expenditure, 7-9/ 7-9/ 1-9/ 1-9/
EUR million 2010 2009 2010 2009 2009
Capital expenditure, operative 1.9 0.9 4.8 3.8 4.8
Capital expenditure, shares 1.2 0.0 11.1 4.2 5.0
Capital expenditure, total 3.1 0.9 15.9 8.0 9.8
HUMAN RESOURCES
Personnel (FTE) by business group, 1-9/ 1-9/ Change,
at the end of the period 2010 2009 % 2009
Energy 1452 1434 1.3 1402
Industry 1952 1864 4.7 1790
Urban & Mobility 1779 1861 -4.4 1858
Water & Environment 867 909 -4.6 908
Management Consulting 476 496 -4.0 451
Group staff and shared resources 141 118 19.5 121
Personnel, total 6667 6682 -0.2 6530
Personnel (FTE) by geographic area, 1-9/ 1-9/ Change,
at the end of the period 2010 2009 % 2009
Nordic countries 2523 2621 -3.7 2510
Other Europe 2838 2855 -0.6 2826
Asia 532 540 -1.5 529
North America 205 206 -0.5 198
South America 461 335 37.6 344
Other areas 108 125 -13.6 123
Personnel, total 6667 6682 -0.2 6530
Personnel structure
The Group had an average of 6540 (7208) employees (FTEs) during the reporting
period, which is 9.3 per cent less than the year before. The number of personnel
at the end of the reporting period was 6667 (6682).
To support projected order inflow in the Industry business group, staff have
been recruited in Brazil, Poland and China.
As part of the operational excellence programme and in order to respond to the
changes in the market environment particularly in Finland, an announcement of
statutory employee negotiations that cover all of Pöyry's Finnish operations was
given in October 2010.
Performance share plan 2008-2010
In 2010 the value of the plan corresponds to 610 000 shares, if the target
performance set by the Board of Directors is met. If the company's performance
exceeds the target and reaches maximum performance, as defined by the Board of
Directors, the value of the plan can reach up to the value of 1 070 000 shares.
The payout from the plan is based on the Group's earnings per share (EPS) and
net sales as well as the condition of service or employment not having been
terminated prior to vesting 1 January 2013. The incentive plan includes
approximately 300 persons in 2010. On 27 October, 91 per cent of the grants for
the earning period 2010 had been allocated.
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.
SHARE CAPITAL AND SHARES
The share capital of Pöyry PLC on 30 September 2010 totalled EUR 14 588 478. The
total number of shares including treasury shares totalled 59 338 006 at the end
of the reporting period.
On 27 October 2010, Pöyry held a total of 389 279 treasury shares, which
corresponds to 0.7 per cent of the total number of shares and which at that date
had a market value of EUR 4.3 million.
SHARES SUBSCRIBED FOR UNDER THE OPTION PROGRAMME 2004
Pursuant to Pöyry's stock option programme 2004, a total of 378 608 new shares
were subscribed after the end of 2009. As a result of these subscriptions, the
total number of Pöyry's shares including treasury shares will increase to
59 350 006. 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 1 316 820 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 September 2010 was EUR 11.15. The
volume weighted average share price during the reporting period was EUR 10.36,
the highest quotation being EUR 12.30 and the lowest EUR 9.02. The share price
was at the same level as at year-end 2009. During the reporting period
approximately 16.2 million Pöyry shares were traded on NASDAQ OMX Helsinki,
corresponding to a turnover of approximately EUR 167.9 million. The average
daily trading volume was about 85 800 shares or approximately EUR 0.9 million.
On 30 September 2010, the total market value of Pöyry's shares was EUR 657.3
million excluding treasury shares held by the company and EUR 661.6 million
including treasury shares.
OWNERSHIP STRUCTURE
The number of registered shareholders increased from 6933 at the end of 2009 to
7651 at the end of the reporting period, representing a growth of 10 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 15.02 per cent of the voting
rights were owned by nominee-registered shareholders. Total ownership outside
Finland, including Corbis S.A. together with nominee-registered shareholders was
in total 47.14 per cent of the voting rights.
IMPORTANT EVENTS AFTER THE END OF THE REPORTING PERIOD
On 14 October, Pöyry reduced it outlook for the full year 2010 operating profit.
On 14 October, Pöyry also released its key strategic priorities and announced
that as part of strategy implementation the Group will launch an operational
excellence programme. In this conjunction Pöyry announced it will initiate
statutory employee negotiation in all its Finnish operations.
On 21 October, Pöyry announced engineering contractor services contracts for 6 x
110 and 1 x 120 MW gas-fired combined cycle cogeneration power plant projects in
Thailand by Mit-Power (Thailand) Limited, which is owned by Mitsui. The total
value of the assignments is about EUR 15 million. The Notice to Proceed (NTP)
for the first three contracts with a value of about EUR 7.5 million was issued
on 15 October 2010 and the order will be booked into the fourth-quarter 2010
order stock. The NTP for the remaining four projects is expected to be issued
and booked in the order stock in 2011.
On 28 October Pöyry announced further details about the implementation of the
efficiency improvement measures in Finland relating to the operational
excellence programme.
KEY STRATEGIC PRIORITIES
Pöyry has defined its key strategic priorities for 2010-2013 that aim at
reaching the financial targets disclosed in connection with the vision launch on
2 December 2009. The strategic priorities include:
Key segments and geographies
Focus on selected businesses and geographic areas within the energy, industry,
urban & mobility and water & environment segments in order to achieve a
leadership position. The geographical focus will target markets where the Pöyry
Group is able to develop an enduring competitive position and where the mid-to-
long-term demand outlook for the company's services is expected to remain
positive. These markets include Central and Eastern Europe, Latin America and
Russia, in particular.
Synergetic services
Develop value-added services and capabilities to improve profitability. These
include new offerings in management consulting, larger project scopes involving
engineering, procurement and construction management and the establishment of
cost-competitive engineering centres to better serve chosen segments and
geographies.
Business portfolio development
Active management of the portfolio aims to strengthen Pöyry's competitive
position in the priority segments and geographies.
Growth enablers
Key enablers for profitable growth include thought leadership, large project
capabilities, marketing and sales, and way of working. Internal development
programmes are being launched to improve the company's execution capabilities in
these four areas.
OPERATIONAL EXCELLENCE PROGRAMME
In October, Pöyry announced that as part of strategy implementation and in
response to the changing market environment the Group will launch an operational
excellence programme that aims at improving the efficiency and quality of
operations to serve Pöyry's clientele in an efficient way. The Group-wide
programme will be implemented during 2010-2012.
Over the past few years Pöyry's market environment has changed, particularly in
Finland. Many of Pöyry's core industrial clients have shut down capacity in
Finland and are shifting operations to emerging markets. To respond to this
development Pöyry started a process to adapt capacity in Finland in 2009. Since
beginning of 2009 to this date capacity in Finland has reduced permanently by
about 400 people and additionally a capacity corresponding to about 200 persons
is currently temporarily laid off. Investment activity especially in the
industrial and municipal sectors has further weakened. Thus, the need for
structural changes and streamlining of the organisation is most imminent in
Finland, and significant cost saving can be achieved.
The operational excellence programme aims at streamlining of operations and
office network, reducing administration and non-billable activities as well as
improving core processes and investing in competence development. Once
completed, the Pöyry Group will have a more effective and cost-efficient
organisation as well as a streamlined regional office network serving its
Finnish clientele. As part of the programme, engineering services continue to be
consolidated into engineering centres in cost competitive locations.
In this conjunction Pöyry announced it will initiate statutory employee
negotiation in all its Finnish operations. Implementation of the efficiency
improvement measures in Finland is expected to take about 6-9 months. The
planned reduction in capacity, of the currently active workforce, is estimated
to correspond to 250-350 persons. The targeted annualised cost savings are EUR
10-15 million. In addition, the future outlook for the workforce of about 200
persons temporarily laid off will be carefully considered. The related
restructuring costs are estimated to be in the range of EUR 6-10 million
including the possible additional costs from earlier reduction measures. The
majority of the restructuring costs in Finland is expected to be recorded in the
fourth quarter of 2010.
MOST SIGNIFICANT RISKS AND BUSINESS UNCERTAINTIES
A major risk relates to the possibility that the world economy would enter a so-
called "double-dip" recession. This creates uncertainty and delays in clients'
decision making. In addition to uncertainties regarding the world economy and
duration of financial stringency, the complexity of large projects creates
uncertainty around the timing of investment decisions and project start-ups
which are beyond Pöyry's control. This may have an adverse impact on Pöyry's
sales and profitability.
An important part of Pöyry's business comes from municipal and institutional
clients. The increased indebtedness of various economies has led the EU and an
increasing number of 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.
Part of Pöyry'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 may experience 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.
PROSPECTS
On 14 October, Pöyry reduced its outlook for the full year 2010 operating
profit.
In the energy sector fundamentals in the investment activity are unchanged but
the timing of investments is unpredictable due to uncertainties in the financial
market. In the industrial sectors demand is increasingly geared to emerging
markets. In anticipation of new investments Pöyry has reserved some capacity in
the Energy and Industry business groups for projected order inflow. The economic
uncertainty, continued financial stringency and complexity of large projects
have, however, resulted in delays in the start-up of projects. In addition to
this, weak demand especially in the oil & gas and renewables segments in the
Energy business group, structural overcapacity especially in the Industry
business group's Finnish operations and decreased activity levels in the Water &
Environment business group's main markets in Finland and Germany, burden
profitability. Therefore the Pöyry Group's operating profit for 2010, excluding
restructuring costs, is estimated to decline clearly from the comparable figure
in 2009. The Group's net sales for the full year 2010 are expected to remain
stable.
Operating profit outlook for the business groups:
The outlook for the operating profit in the Energy and Water & Environment
business groups has been reduced from "remains stable" to "declines clearly".
The Industry business group's operating profit is expected to remain clearly
negative. The outlook for the Urban & Mobility business group remains unchanged
and operating profit is expected to remain stable. The Management Consulting
business group's operating profit outlook is reduced from "improves" to"stable".
Previous Group level outlook in the second-quarter 2010 interim report:
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.
Previous operating profit outlook for the business groups:
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, 27 October 2010
Pöyry PLC
Board of Directors
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010
This interim report has been prepared in accordance with 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. The Group records from
the beginning of 2010 the consulting fees due to acquisitions as other operating
expenses. The non-controlling interests are valued as proportionate share of the
identifiable net assets.
This interim report is unaudited.
PÖYRY GROUP
STATEMENT OF COMPREHENSIVE INCOME
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million 2010 2009 2010 2009 2009
------------------------------------------------------------------
NET SALES 161.2 150.2 495.6 512.0 673.5
------------------------------------------------------------------
Other operating income 0.1 0.2 0.6 0.5 0.8
Share of associated companies'
results 0.1 0.2 0.3 0.6 0.5
Materials and supplies -2.6 -2.0 -7.7 -4.8 -7,0
External charges, subconsulting -23,8 -20.4 -70.7 -63.8 -90.6
Personnel expenses -93.5 -88.3 -296.3 -308.2 -401.5
Depreciation -2.0 -2.0 -5.9 -6.2 -8.2
Other operating expenses -39.4 -36.8 -116.2 -119.2 -155.9
OPERATING PROFIT 0.1 1.1 -0.3 10.9 11.6
------------------------------------------------------------------
Proportion of net sales, % 0.1 0.7 -0.1 2.1 1.7
Financial income 0.4 1.3 1.4 4.2 5.0
Financial expenses -0.9 -1.4 -4.1 -4.3 -5.6
Exchange rate differences -0.4 -0.2 0.9 0.4 1.4
PROFIT BEFORE TAXES -0.8 0.8 -2.1 11.2 12..4
------------------------------------------------------------------
Proportion of net sales, % -0.5 0.5 -0.4 2.2 1.8
Income taxes -1.3 -0.8 -2.6 -4.6 -4.4
------------------------------------------------------------------
NET PROFIT FOR THE PERIOD -2.1 0.0 -4.7 6.6 8.0
------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME
Translation differences -1.6 0.0 5.4 2.0 4.2
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD -3.7 0.0 0.7 8.6 12.2
------------------------------------------------------------------
Net profit attributable to:
Equity holders of the parent
company -2.3 -0.4 -4.9 5.5 6.5
Non-controlling interest 0.2 0.4 0.2 1.1 1.5
Total comprehensive income
attributable to:
Equity holders of the parent
company -3.9 -0.4 0.5 7.5 10.7
Non-controlling interest 0.2 0.4 0.2 1.1 1.5
Earnings/share, attributable to
the equity holders of the parent
company, EUR -0.04 -0.01 -0.08 0.09 0.11
Corrected with dilution effect -0.04 -0.01 -0.08 0.09 0.11
------------------------------------------------------------------
STATEMENT OF FINANCIAL POSITION 30 September 30 September 31 December
EUR million 2010 2009 2009
----------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Goodwill 113.1 100.4 101.3
Intangible assets 5.4 5.3 5.4
Tangible assets 16.4 17.3 16.6
Shares in associated companies 5.6 5.6 5.5
Other shares 2.0 1.9 1.9
Loans receivable 1.5 1.0 1.5
Deferred tax receivables 11.6 10.2 9.5
Pension receivables 0.5 0.2 0.3
Other 8.8 7.2 7.5
----------------------------------------------------------------------------
164.9 149.1 149.5
CURRENT ASSETS
Work in progress 114.4 86.5 78.8
Accounts receivable 127.8 126.7 127.3
Loans receivable 0.1 0.2 0.1
Other receivables 11.1 13.6 7.5
Prepaid expenses and accrued income 15.0 13.8 10.2
Financial assets at fair value
through profit and loss 19.2 64,5 27.9
Cash and cash equivalents 58.4 64.4 114.1
----------------------------------------------------------------------------
346.0 369.7 365.9
TOTAL 510.9 518.8 515.4
----------------------------------------------------------------------------
EQUITY AND LIABILITIES
EQUITY
Equity attributable to the equity
holders of the parent company
Share capital 14.6 14.6 14.6
Legal reserve 3.2 2.8 2.9
Invested free equity reserve 58.1 56.3 56.6
Translation difference -12.8 -20.5 -18.2
Retained earnings 110.2 118.8 120.2
----------------------------------------------------------------------------
173.3 172.0 176.0
Non-controlling interest 7.0 7.6 8.0
----------------------------------------------------------------------------
180.3 179.6 184.0
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing non-current
liabilities 94.0 111.1 101.3
Pension obligations 8.1 7.9 7.4
Deferred tax liability 1.7 4.5 1.7
Other non-current liabilities 2.5 2,5 2.3
----------------------------------------------------------------------------
106.3 126.0 112.7
CURRENT LIABILITIES
Amortisations of interest bearing
non-current liabilities 19.6 19.3 19.8
Interest bearing current liabilities 1.2 2.1 1.7
Provisions 13.8 8.7 8.3
Project advances 59.5 59.2 66.0
Accounts payable 22.3 16.6 21.5
Other current liabilities 30.0 29.3 29.3
Current tax payable 3.8 5.9 4.2
Accrued expenses and deferred income 74.1 72.1 68.0
----------------------------------------------------------------------------
224.3 213.2 218.8
TOTAL 510.9 518.8 515.4
----------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million 2010 2009 2010 2009 2009
---------------------------------------------------------------------
FROM OPERATING ACTIVITIES
Net profit for the period -2.1 0.0 -4.7 6.6 8.0
Depreciation and value decrease 2,0 2.0 5.9 6.2 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 -0.3 -0.6 0.2
Financial income and expenses 0.9 0.3 1.8 -0.3 -0.8
Income taxes 1.3 0.8 2.6 4.6 4.4
Change in work in progress -4.9 -6.7 -35.6 -17.2 -9.5
Change in accounts and other
receivables 13.7 6.5 -10.2 10.0 18.3
Change in advances received -8.5 0.0 -6.5 -14.4 -7.6
Change in payables and other
liabilities -4.7 -14.5 12.7 -15.8 -15.7
Received financial income 0.4 0.4 1.4 3.2 5.0
Paid financial expenses -0.5 -0.3 -3.7 -3.0 -5.7
Paid income taxes -4.2 -4.9 -5.6 -16.0 -15.2
---------------------------------------------------------------------
Total from operating activities -6.7 -16.6 -42.2 -36.7 -10.4
CAPITAL EXPENDITURE
Investments in shares in subsidiaries
deducted with cash acquired -0.4 0.8 -9.0 -10.2 -10.6
Investments in other shares 0.0 0.0 0.0 0.0 -0.2
Investments in fixed assets -1.9 -0.9 -4.8 -3.8 -4.7
Sales of fixed assets 0.1 0.0 0.2 0.4 0.3
---------------------------------------------------------------------
Capital expenditure total, net -2.2 -0.1 -13.6 -13.6 -15.2
Net cash before financing -8.9 -16.7 -55.8 -50.3 -25.6
FINANCING
New loans 0.2 20.0 0.2 20.0 20.0
Repayments of loans 0.0 -0.5 -9.8 -11.1 -20.5
Change in current financing 0.1 1.6 -0.9 1.2 0.7
Dividends 0.0 -0.7 -6.7 -38.7 -39.0
Acquisition of own shares 0.0 -0.1 0.0 -1.9 -1.9
Share subscription 0.0 0.0 1.5 0.1 0.4
---------------------------------------------------------------------
Net cash from financing 0.3 20.3 -15.7 -30.4 -40.3
Change in cash and cash equivalents and
in other liquid assets -8.6 3.6 -71.5 -80.7 -65.9
Cash and cash equivalents and other
liquid assets at the beginning of the
period 88.2 123.6 142.0 203.7 203.7
Change in the fair value of financial
assets 0.6 0.6 0.1
Impact of translation differences in
exchange rates -2.0 1.1 7.1 5.3 4.1
Cash and cash equivalents and other
liquid assets at the end of the period 77.6 128.9 77.6 128.9 142.0
---------------------------------------------------------------------
Financial assets at fair value through
profit and loss 19.2 64.5 19.2 64.5 27.9
Cash and cash equivalents 58.4 64.4 58.4 64.4 114.1
Cash and cash equivalents and other
liquid assets 77.6 128.9 77.6 128.9 142.0
---------------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
Inves- Non-
Share ted con-
pre- free Trans- Re- troll-
Share mium Legal equity lation tained ing
cap- re- re- re- differ- earn- inter- Total
EUR million ital serve serve serve ences ings Total est equity
---------------------------------------------------------------------------
Equity
1 July 2009 14.6 32.4 20.8 5.8 -20.5 119.2 172.3 8.4 180.7
Shares sub-
scribed
with stock
options 0.1 0.1 0.1
Payment of
dividend 0.0 -1.2 -1.2
Acquisition
of own
shares 0.0 0.0
Transfer to
invested
free equity
reserve -32.4 -18.0 50.4 0.0 0.0
Transfer.
retained
earnings 0.0 0.0
Expenses from
share-based
incentive
programmes 0.4 0.4 0.4
Comprehensive
income for
the period -0.4 -0.4 0.4 0.0
Changes for
the period 0.0 -32.4 -18.0 50.5 0.0 0.0 0.1 -0.8 -0.7
---------------------------------------------------------------------------
Equity
30 Sept. 2009 14.6 0.0 2.8 56.3 -20.5 118.8 172.0 7.6 179.6
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 -1.2 -39.1
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.
retained
earnings 0.3 -0.3 0.0 0.0
Expenses from
share-based
incentive
programmes 1.0 1.0 1.0
Comprehensive
income for
the period 2.0 5.5 7.5 1.1 8.6
Changes for
the period 0.0 -32.4 -17.7 50.5 2.0 -33.6 -31.2 -0.1 -31.3
---------------------------------------------------------------------------
Equity
30 Sept. 2009 14.6 0.0 2.8 56.3 -20.5 118.8 172.0 7.6 179.6
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,
retained
earnings 0.3 -0.3 0.0 0.0
Expenses from
share-based
incentive
programmes 1.2 1.2 1.2
Non-
controlling
interest,
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 July 2010 14.6 0.0 3.1 58.1 -11.4 112.4 176.8 7.2 184.0
Shares sub-
scribed
with stock
options 0.0 0.0
Payment of
dividend 0.0 -0.3 -0.3
Transfer,
retained
earnings 0.1 -0.1 0.0 0.0
Expenses from
share-based
incentive
programmes 0.3 0.3 0.3
Comprehensive
income for
the period -1.6 -2.1 -3.7 0.1 -3.6
Changes for
the period 0.0 0.0 0.1 0.0 -1.6 -1.9 -3.4 -0.2 -3.6
---------------------------------------------------------------------------
Equity
30 Sept. 2010 14.6 0.0 3.2 58.1 -12.8 110.2 173.3 7.0 180.3
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 -1.1 -7.0
Transfer,
retained
earnings 0.3 -0.3 0.0 0.0
Expenses from
share-based
incentive
programmes 1.0 1.0 1.0
Non-
controlling
interest,
change 0.0 0.0
Comprehensive
income for
the period 5.4 -4.7 0.7 0.1 0.8
Changes for
the period 0.0 0.0 0.3 1.5 5.4 -9.9 -2.7 -1.0 -3.7
---------------------------------------------------------------------------
Equity
30 Sept. 2010 14.6 0.0 3.2 58.1 -12.8 110.2 173.3 7.0 180.3
---------------------------------------------------------------------------
30 September 30 September 31 December
EUR million 2010 2009 2009
--------------------------------------------------------------------------------
Contingent liabilities
Other own obligations
Pledged assets 1.3 1.8 2.0
Project and other guarantees 58.1 50.3 55.0
For other parties
Pledged assets 0.2 0.2 0.0
Other obligations 0.1 0.1 0.1
Rent and lease obligations 102.6 110.9 111.0
Derivative instruments
Foreign exchange forward
contracts,
nominal values 63.3 33.9 33.4
Foreign exchange forward
contracts, 3.3 1.1 0.5
fair values -0.4 -0.2 -0.4
Currency options, nominal values
Purchased 0.1 0.3 0.2
Written 0.0 0.0 0.0
Currency options, fair
values
Purchased 0.0 0.0 0.0
Written 0.0 0.0 0.0
Interest rate swaps, nominal
values 12.0 10.6 41.6
of which basis swaps 0.0 30.8
Interest rate swaps, fair values -0.7 -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 0.0 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 September 2010 a total of 164418
shares and 48 700 stock options (on 31 December 2009 a total of 179 676
shares, and 108 227 stock options 2004, including also the ownerships of the
Deputy to the President and CEO).
With the stock options the shareholding can be increased by 194 800 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.
--------------------------------------------------------------------------------
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
KEY FIGURES 2010 2009 2010 2009 2009
-------------------------------------------------------------------
Earnings / share, EUR -0.04 -0.01 -0.08 0.09 0.11
Corrected with dilution effect -0.04 -0.01 -0.08 0.09 0.11
Equity attributable to equity
holders of the parent
company/share, EUR 2.92 2.92 2.98
Return on investment, % p.a. 0.5 6.8 5.3
Return on equity, % p.a. -3.5 4.6 4.1
Equity ratio, % 39.9 39.1 40.9
Equity / Assets ratio, % 35.3 34.6 35.7
Net debt / Equity ratio (gearing), % 20.6 2.0 -10.5
Net debt, EUR million 37.2 3.6 -19.3
Consulting and engineering,
EUR million 538.5 510.8 483.6
EPC, EUR million 5.2 3.1 2.1
Order stock total, EUR million 543.7 513.9 485.7
Capital expenditure, operating,
EUR million 1.9 0.9 4.8 3.8 4.8
Capital expenditure in shares,
EUR million 1.2 0.0 11.1 4.2 5.0
Personnel in Group companies on
average 6540 7208 7052
Personnel in Group companies at the
end of the period 6667 6682 6530
Personnel in associated companies at
the end of the period 138 142 141
CHANGE IN INTANGIBLE ASSETS
EUR million
-------------------------------------------------------------------
Book value at beginning of period 5.3 5.7 5.4 6.2 6.2
Acquired companies 0.5 0.0 0.5 0.0 0.0
Capital expenditure 0.5 0.0 1.2 0.7 1.2
Decreases 0.0 0.0 0.0 0.0 0.0
Depreciation and expenses -0.6 -0.5 -1.6 -1.7 -2.2
Translation difference -0.3 0.1 -0.1 0.1 0.2
------------------------------
Book value at end of period 5.4 5.3 5.4 5.3 5.4
CHANGE IN TANGIBLE ASSETS
-------------------------------------------------------------------
Book value at beginning of period 16.5 17.8 16.6 18.8 18.8
Acquired companies 0.0 0.0 0.2 0.0 0.0
Capital expenditure 1.6 0.8 3.6 3.1 3.4
Decreases -0.1 0.0 -0.2 -0.4 -0.4
Depreciation -1.4 -1.5 -4.3 -4.5 -6.0
Translation difference -0.2 0.2 0.5 0.3 0.8
------------------------------
Book value at end of period 16.4 17.3 16.4 17.3 16.6
-------------------------------------------------------------------
OPERATING SEGMENTS
1-9/ 1-9/ 1-12/
EUR million 2010 2009 2009
--------------------------------------------------------------
NET SALES
Energy 128.2 129.9 173.9
Industry 113.1 128.4 162.0
Urban & Mobility 142.1 137.8 184.5
Water & Environment 58.1 63.6 86.5
Management Consulting 53.7 50.7 68.5
Unallocated 0.4 1.6 -1.9
------------------------
Total 495.6 512.0 673.5
OPERATING PROFIT AND NET PROFIT FOR THE PERIOD
Energy 1.8 5.1 5.9
Industry -6.8 -4.9 -10.1
Urban & Mobility 8.4 10.9 14.9
Water & Environment 1.3 3.4 4.9
Management Consulting -2.3 -1.1 -0.4
Unallocated -2.6 -2.5 -3.6
------------------------
Operating profit total -0.3 10.9 11.6
Financial income and expenses -1.8 0.3 0.8
------------------------
Profit before taxes -2.1 11.2 12.4
Income taxes -2.6 -4.6 -4.4
------------------------
Net profit for the period -4.7 6.6 8.0
Profit attributable to:
Equity holders of the parent company -4.9 5.5 6.5
Non-controlling interest 0.2 1.1 1.5
OPERATING PROFIT %
Energy 1.4 3.9 3.4
Industry -6.0 -3.8 -6.2
Urban & Mobility 5.9 7.9 8.1
Water & Environment 2.2 5.3 5.7
Management Consulting -4.3 -2.2 -0.7
------------------------
Group -0.1 2.1 1.7
OPERATING PROFIT, EXCLUDING RESTRUCTURING COSTS
Energy 2.8 6.6 7.8
Industry -6.4 1.8 -3.5
Urban & Mobility 8.5 11.3 15.5
Water & Environment 1.3 3.6 5.1
Management Consulting 0.1 0.0 1.2
Unallocated -2.6 -2.5 -3.6
------------------------
Operating profit total 3.8 20.8 22.5
OPERATING PROFIT, EXCLUDING RESTRUCTURING COSTS %
Energy 2.2 5.1 4.5
Industry -5.7 1.4 -2.2
Urban & Mobility 6.0 8.2 8.4
Water & Environment 2.2 5.7 6.0
Management Consulting 0.2 0.0 1.8
------------------------
Group 0.8 4.1 3.3
ORDER STOCK
Energy 183.4 173.6 171.0
Industry 72.5 48.7 39.3
Urban & Mobility 196.1 202.4 194.8
Water & Environment 70.6 69.0 62.3
Management Consulting 21.1 20.1 18.0
Unallocated 0.0 0.1 0.3
------------------------
Total 543.7 513.9 485.7
Consulting and engineering 538.5 510.8 483.6
EPC 5.2 3.1 2.1
------------------------
Total 543.7 513.9 485.7
--------------------------------------------------------------
PERSONNEL, END OF THE PERIOD
Energy 1452 1434 1402
Industry 1952 1864 1790
Urban & Mobility 1779 1861 1858
Water & Environment 867 909 908
Management Consulting 476 496 451
Unallocated 141 118 121
------------------------
Total 6667 6682 6530
NET SALES BY AREA
The Nordic countries 143.4 144.1 194.4
Other Europe 221.7 249.2 323.7
Asia 36.8 40.0 54.7
North America 20.8 15.2 20.0
South America 47.5 40.5 50.3
Other 25.4 23.0 30.4
------------------------
Total 495.6 512.0 673.5
--------------------------------------------------------------
OPERATING SEGMENTS
10-12/ 1-3/ 4-6/ 7-9/
EUR million 2008 2009 2009 2009
------------------------------------------------------------------------
NET SALES
Energy 50.2 48.3 41.6 40.0
Industry 67.3 51.3 45.6 31.5
Urban & Mobility 48.1 48.9 46.3 42.6
Water & Environment 25.3 21.0 22.0 20.6
Management Consulting 24.1 17.8 17.8 15.1
Unallocated -1.4 0.5 0.7 0.4
-------------------------
Total 213.6 187.8 174.0 150.2
OPERATING PROFIT AND NET PROFIT FOR THE PERIOD
Energy 10.0 3.2 1.3 0.6
Industry 9.8 -0.9 -0.4 -3.6
Urban & Mobility 4.6 3.8 3.4 3.7
Water & Environment 1.8 0.8 1.5 1.1
Management Consulting 2.0 -0.6 -0.4 -0.1
Unallocated -1.5 -1.1 -0.8 -0.6
-------------------------
Operating profit total 26.7 5.2 4.6 1.1
Financial income and expenses 0.2 1.1 -0.5 -0.3
-------------------------
Profit before taxes 26.9 6.3 4.1 0.8
Income taxes -6.6 -2.0 -1.8 -0.8
-------------------------
Net profit for the period 20.3 4.3 2.3 0.0
Profit attributable to:
Equity holders of the parent company 19.8 3.8 2.1 -0.4
Non-controlling interest 0.5 0.5 0.2 0.4
OPERATING PROFIT %
Energy 19.9 6.6 3.1 1.5
Industry 14.5 -1.8 -0.9 -11.4
Urban & Mobility 9.7 7.8 7.3 8.7
Water & Environment 7.3 3.8 6.8 5.3
Management Consulting 8.5 -3.4 -2.2 -0.7
-------------------------
Group 12.5 2.8 2.6 0.7
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS
Energy 10.0 3.2 2.1 1.3
Industry 9.8 1.5 2.5 -2.2
Urban & Mobility 4.6 4.1 3.5 3.7
Water & Environment 1.8 0.8 1.6 1.2
Management Consulting 2.0 -0.2 0.3 -0.1
Unallocated -1.5 -1.1 -0.8 -0.6
-------------------------
Operating profit, excluding restructuring
costs, total 26.7 8.3 9.2 3.3
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS %
Energy 19.9 6.6 5.0 3.3
Industry 14.5 2.9 5.5 -7.0
Urban & Mobility 9.7 8.4 7.6 8.7
Water & Environment 7.3 3.8 7.3 5.8
Management Consulting 8.5 -1.1 1.7 -0.7
-------------------------
Group 12.5 4.4 5.3 2.2
ORDER STOCK
Energy 182.0 180.4 178.5 173.6
Industry 82.4 66.8 57.5 48.7
Urban & Mobility 176.4 198.2 202.0 202.4
Water & Environment 76.8 78.8 75.5 69.0
Management Consulting 21.1 21.6 19.3 20.1
Unallocated 0.4 0.6 1.3 0.1
-------------------------
Total 539.1 546.4 534.1 513.9
Consulting and engineering 538,6 539.8 530.7 510.8
EPC 0.5 6.6 3.4 3.1
-------------------------
Total 539.1 546.4 534.1 513.9
------------------------------------------------------------------------
OPERATING SEGMENTS
10-12/ 1-3/ 4-6/ 7-9/
EUR million 2009 2010 2010 2010
------------------------------------------------------------------------
NET SALES
Energy 44.0 42.8 41.1 44.3
Industry 33.6 35.8 40.1 37.2
Urban & Mobility 46.7 47.5 52.0 42.6
Water & Environment 22.9 19.3 19.9 18.9
Management Consulting 17.8 17.2 18.5 18.0
Unallocated -3.5 0.1 0.1 0.2
-------------------------
Total 161.5 162.7 171.7 161.2
OPERATING PROFIT AND NET PROFIT FOR THE PERIOD
Energy 0.8 0.4 0.4 1.0
Industry -5.2 -4.3 -1.7 -0.8
Urban & Mobility 4.0 3.6 3.2 1.6
Water & Environment 1.5 0.5 0.8 0.0
Management Consulting 0.7 0.3 -1.6 -1.0
Unallocated -1.1 -1.0 -1.0 -0.6
-------------------------
Operating profit total 0.7 -0.4 0.0 0.1
Financial income and expenses 0,5 -0.2 -0.7 -0.9
-------------------------
Profit before taxes 1.2 -0.6 -0.7 -0.8
Income taxes 0.2 -0.5 -0.8 -1.3
-------------------------
Net profit for the period 1.4 -1.1 -1.5 -2.1
Profit attributable to:
Equity holders of the parent company 1.0 -0.9 -1.7 -2.3
Non-controlling interest 0.4 -0.2 0.2 0.2
OPERATING PROFIT %
Energy 1.9 1.0 1.0 2.3
Industry -15.5 -12.0 -4.2 -2.2
Urban & Mobility 8.6 7.6 6.2 3.8
Water & Environment 6.7 2.6 4.0 0.0
Management Consulting 3.6 1.7 -8.6 -5.6
-------------------------
Group 0.4 -0.2 0.0 0.1
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS
Energy 1.2 1.4 0.6 0.8
Industry -5.3 -4.1 -1.3 -1.0
Urban & Mobility 4.2 3.6 3.3 1.6
Water & Environment 1.6 0.5 0.8 0.0
Management Consulting 1.2 0.3 0.6 -0.8
Unallocated -1.1 -1.0 -1.0 -0.6
-------------------------
Operating profit, excluding restructuring
costs, total 1.8 0.9 2.8 0.1
OPERATING PROFIT, EXCLUDING RESTRUCTURING
COSTS %
Energy 2.7 3.4 1.5 1.8
Industry -15.8 -11.5 -3.2 -2.7
Urban & Mobility 9.0 7.6 6.3 3.8
Water & Environment 7.0 2.6 4.0 0.0
Management Consulting 6.7 1.7 3.2 -4.4
-------------------------
Group 1.1 0.6 1.6 0.1
ORDER STOCK
Energy 171.0 175.5 191.2 183.4
Industry 39.3 69.6 82.5 72.5
Urban & Mobility 194.8 193.6 199.6 196.1
Water & Environment 62.3 70.5 72.5 70.6
Management Consulting 18.0 20.5 23.8 21.1
Unallocated 0.3 0.0 0.0 0.0
-------------------------
Total 485.7 529.7 569.6 543.7
Consulting and engineering 483,6 527.9 564.3 538.5
EPC 2.1 1.8 5.3 5.2
-------------------------
Total 485.7 529.7 569.6 543.7
------------------------------------------------------------------------
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 %
Brennus Ingénieurs Conseils SA 1 July 2010 100
The company runs NUMEX which is Europe's leading
platform for operators for exchanging maintenance
experience and best-practice maintenance
procedures. The company is based in France and has
no personnel.
ETV-Eröterv 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
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million 2010 2009 2010 2009 2009
-----------------------------------------------------------------------
Purchase price
Fixed price, paid 1.1 11.0 4.2 4.2
Earnout estimate 0.0 0.0
Total 1.1 0.0 11.0 4.2 4.2
Price allocation
Equity 0.6 2.1 0.2 0.2
Fair value adjustments:
Intangible assets 0.5 0.5
Client relationship
Order stock
Total 1.1 0.0 2.6 0.2 0.2
Goodwill (remaining) 0.0 0.0 8.4 4.0 4.0
Market leadership, experienced
management and staff, and earnings
expectations are factors contributing
to the amount booked as goodwill.
The goodwill value from the
acquisition of ETV-Eröterv Zrt in
2010 was especially due to the
company's profound knowledge of the
Russian nuclear power plant
technology.
Acquisition related costs 0.0 0.2
The expenses are included in other
operating expenses and due to the
acquisition of ETV-Eröterv Zrt.
Impact on the Pöyry Group's income statement
Operating profit from acquisition
date to end of September 2010 /
December 2009 -0.4 0.0
Sales volume on a 12-month calendar
year basis 13.0 3.0
Operating profit on 12-month calendar
year basis 0.8 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 2,0 2.0 0.2 0.2
Assets total 4.1 0.0 4.1 0.4 0.0 0.4
Other current
liabilities 2.0 2.0 0.2 0.2
Liabilities total 2.0 0.0 2.0 0.2 0.0 0.2Net identifiable assets
and
liabilities 2.1 0.0 2.1 0.2 0.0 0.2
Total cost of business
combinations 11.0 4.2
Intangible assets 0.5 0.0
Goodwill 8.4 4.0
Consideration paid,
satisfied in cash 11.0 4.2
Cash acquired 2.0 0.2
Net cash outflow 9.0 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 non-controlling interests are valued as proportionate share of the
identifiable net assets.
Of the acquisitions in 2010 the value was EUR 0.01
million.
--------------------------------------------------------------------------------
CHANGES IN GOODWILL AND INTANGIBLE ASSETS
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
EUR million 2010 2009 2010 2009 2009
--------------------------------------------------------------------------------
Book value at beginning of
period, goodwill 114.3 99.8 101.3 95.9 95.9
Book value at beginning of
period, intangible assets 0.9 0.9 0.9 0.9 0.9
Increase in goodwill 0.0 0.1 8.4 4.3 4.4
Increase in intangible assets 0.5 0.0 0.5 0.0 0.0
Decrease in goodwill 0.0 0.0 -0.6 -1.9 -2.1
Depreciation of intangible
assets 0.0 0.0 0.0 0.0 0.0
Exchange differences, goodwill -1.2 0.5 4.0 2.1 3.1
-------------------------------------------------
Book value at end of period 114.5 101.3 114.5 101.3 102.2
Goodwill 113.1 100.4 113.1 100.4 101.3
Intangible assets 1.4 0.9 1.4 0.9 0.9
The decrease of EUR 0.6 million in the goodwill 2010 is due to earn-out payment
2010, which was less than provided for at the acquisition in 2007.
--------------------------------------------------------------------------------
[HUG#1456351]
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