Interim Report 1 January - 31 March 2010
(Thomson Reuters ONE) -
PÖYRY PLC Interim Report 21 April 2010 at 8:30 a.m.
POSITIVE ORDER INTAKE, STILL LOW PROFITABILITY
KEY FIGURES
Pöyry Group 1-3/2010 1-3/2009 Change, % 2009
Order stock at end of period,
EUR million 529.7 546.4 -3.1 485.7
Net sales total, EUR million 162.7 187.8 -13.4 673.5
Operating profit excluding
restructuring costs, EUR million 0.9 8.3 -89.2 22.5
Operating margin excluding
restructuring costs, % 0.6 4.4 3.3
Operating profit, EUR million -0.4 5.2 -107.7 11.6
Operating margin, % -0.2 2.8 1.7
Profit before taxes, EUR million -0.6 6.3 -109.5 12.4
Earnings per share, basic, EUR -0.02 0.07 -124.4 0.11
Earnings per share, diluted, EUR -0.02 0.07 -124.4 0.11
Gearing, % 8.0 -12.5 -10.5
Return on investment, % (R12M) 0.1 11.1 5.3
Average number of personnel during
period, calculated as full time
equivalents (FTE) 6472 7711 -16.1 7052
Figures in brackets, unless otherwise stated, refer to the same period the
previous year.
FIRST-QUARTER HIGHLIGHTS
- The Group's order stock increased by 9.1 percent to EUR 529.7 million from EUR
485.7 million at the year-end 2009 as clients especially in the Industry
business group showed increasing activity. The order stock remained still
slightly below the level of the corresponding quarter the year before (546.4).
- Sales at EUR 162.7 million were -13.4 percent below the previous year (187.8)
as project activity still was low and as the positive order intake will have an
impact later.
- Profitability remained low. Operating profit excluding restructuring costs was
EUR 0.9 million (8.3) corresponding to 0.6 per cent (4.4) of sales.
- Restructuring costs in the first quarter totalled EUR 1.3 million.
- Cash flow after capital expenditure was at EUR -30.2 million (-23.4).
- We downgrade our guidance for 2010 regarding the Group sales and operating
profit as well as the Energy business group's operating profit after
restructuring costs.
FUTURE PROSPECTS
The Group order stock is expected to continue growing. Due to timing of revenue
recognition of those new orders, the impact on 2010 sales is limited. The Group
sales for the full year 2010 is 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:
"In the result review for last year in February 2010 we stated that the year has
started on a slightly more positive note than the past year and that clients
have again started planning new projects. We have a healthy prospect list, and
the expectations of the recovery in the global economy have increased but so far
the trend has not yet materialised in new investments on a larger scale.
However, during the last months of 2009 and in early 2010, the prices of certain
commodities and raw materials, e.g. pulp, have been increasing. This as well as
increased availability of project funding has led to strengthening signs of
recovering investment activity which has also been visible in our order intake.
After a lengthy quiet period we have announced a few material engineering
contracts with our forest industry clients. We were awarded a EUR 5 million
engineering contract for SAICA Containerboard UK Ltd for one of the world's most
advanced recycled paper mills. We were also awarded a EUR 7.5 million contract
for pre-engineering and preparatory mill infrastructure work for a 1.5 million
ton market pulp mill for Eldorado in Brazil. Within the energy sector the hydro
power business area has continued active and there we were awarded e.g. a EUR
6.1 million contract for a hydropower project in Sri Lanka.
All in all, the order intake has started to recover from its trough in mid-2009.
Nevertheless, after a major slow down in 2009, developing plans into projects
takes time and we will see the actual project implementation starting towards
the end of this year and in 2011. Hence, as the order stock at end 2009 was
lacking larger projects, the first quarter's sales and profitability were still
low. Based on the current order stock and outlook for new orders, we expect the
Group sales for the full year 2010 to remain stable or grow, and the Group's
operating profit to remain stable compared with 2009."
PÖYRY PLC
Additional information by:
Heikki Malinen, President and CEO
tel. +358 10 33 21307
Esa Ikäheimonen, CFO
tel. +358 10 33 21586
Sanna Päiväniemi, Director, Investor Relations
tel. +358 10 33 23002
INVITATION TO CONFERENCES TODAY 21 APRIL 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: +358 9 2313 9201
Conference id: 862903
We kindly ask those attending the international conference call to dial in 5
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 - 31 MARCH 2010
The figures in this interim report are unaudited.
MARKET REVIEW
Various composite and confidence indicators started to show signs of recovery in
the world economy in the latter part of 2009. However, although industrial
activity started improving, the actual production and capacity utilization
levels have remained low. Therefore the trend has not yet materialised in new
investments on a larger scale.
During the late months of 2009 and in early 2010, prices of certain commodities
and raw materials e.g. crude oil, metals and pulp have been increasing. There
have also been strengthening signs of investment planning becoming more active,
leading to increasing demand, for instance in pre-engineering services.
Growth in demand for energy continues in emerging markets but the availability
of financing is still prolonging the decision making process. The low level of
investments has also led to tightening price competition especially in certain
developed markets as engineering companies compete for these limited
opportunities. Within industrial sectors preliminary engineering work for new
investment projects and other pre-investment activity have increased during
early 2010. Investments into the transportation sector remain strong. Activity
in the water supply and sanitation sectors has remained fairly stable.
Investments in the construction sector, particularly in the commercial and the
industrial sectors, has continued low. 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 1-3/2010 1-3/2009 Change, % 2009
Consulting and engineering 527.9 539.8 -2.2 483.6
EPC 1.8 6.6 -72.7 2.1
Total 529.7 546.4 -3.1 485.7
The Group's order stock at the end of the first quarter of 2010 totalled EUR
529.7 million (546.4). The order stock has grown since the third quarter of
2009 and increased by 9.1 per cent compared with the end of 2009. The increase
was supported by some significant orders in the Industry business group. The
breakdown by Business Group for the first quarter order book was as follows:
Energy EUR 175.5 million (33 per cent of the total order stock), Industry EUR
69.6 million (13 per cent), Urban & Mobility EUR 193.6 million (37 per cent),
Water & Environment EUR 70.5 million (13 per cent) and Management Consulting EUR
20.5 million (4 per cent).
The quality of the order stock is good.
ORDER INTAKE
Order intake improved clearly from the last quarter of 2009 and orders received
amounted to the same level as in the first quarter of 2009.
Within the Energy business group the order intake in certain sectors, such as
the hydro power and nuclear and transmission & distribution business areas, has
continued positive. Order intake in the Industry business group has recovered
compared with the previous year as especially clients in the forest industry are
increasingly active in planning new projects. In the Urban & Mobility business
group the order intake has remained stable. Especially activity in railroads and
metros remain strong. In the Water & Environment business group order intake was
better during the first quarter of 2010 compared with the fourth quarter of
2009, especially due to demand in emerging markets. The improvement in
industrial activity has also been reflected in increasing order intake for the
Management consulting business group's assignments.
GROUP SALES
Net sales by business group, EUR Share of
million 1-3/2010 1-3/2009 Change, % total sales, %
Energy 42.8 48.3 -11.4 26
Industry 35.8 51.3 -30.2 22
Urban & Mobility 47.5 48.9 -2.9 29
Water & Environment 19.3 21.0 -8.1 12
Management Consulting 17.2 17.8 -3.4 11
Unallocated 0.1 0.5 -80.0 0
Total 162.7 187.8 -13.4 100
Consolidated net sales in the first quarter of 2010 fell by 13.4 per cent
compared with the year before to EUR 162.7 million (187.8) reflecting the
post-cyclical nature of Pöyry's sales. The sales volume in the Industry business
group was clearly below last year and declined also in the Energy business group
as project activity levels continued low. In other business groups sales
decreased less.
Compared with the year before, sales decreased in all other regions than in
North America where the positive development in the first quarter of 2010
reflected the increasing customer activity especially in the bio-energy business
area. Sales decreased most in Asia where some sizeable projects were still in
execution in early 2009. Volumes in Asia have also decreased as some of the
2009 restructuring measures were implemented in the region.
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
1-3/2010 1-3/2009 Change, % 2009
Order stock, EUR million 175.5 180.4 -2.7 171.0
Sales, EUR million 42.8 48.3 -11.4 173.9
Operating profit excl.
restructuring costs, EUR million 1.4 3.2 -56.4 7.8
Operating margin excl.
restructuring costs, % 3.4 6.6 4.5
Operating profit, EUR million 0.4 3.2 -87.5 5.9
Operating margin, % 1.0 6.6 3.4
Personnel at end of period 1330 1613 -17.5 1402
1-3/2010
The order stock decreased by 2.7 per cent to EUR 175.5 million (180.4) from the
year before. Activity in the hydro power and nuclear as well as T&D business
areas has continued good. However, the underlying demand within the power &
fuels as well as in renewable energy business areas has remained sluggish.
Compared with the fourth quarter of 2009, the order stock increased 2.6 per
cent. 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 still awaiting the final financial closure before they will be booked into
the order stock.
Net sales for the first quarter of 2010 were EUR 42.8 (48.3) million
representing a fall of 11.4 per cent from the year before. During the first
quarter of 2009 a couple of larger projects where in their final stages of
execution which partly explains the drop. In absence of new larger projects the
sales volumes in the first quarter of 2010 remained low. There were signs of
intensifying price competition, which in certain markets led to lower volumes
for the Energy business group. Consistent with normal seasonal fluctuations, the
net sales fell also below the EUR 44.0 million in the fourth quarter of 2009.
Operating profit before EUR 1.0 million restructuring costs amounted to EUR 1.4
(3.2) million and the operating margin was 3.4 per cent of sales (6.6). Low
activity levels burdened the profitability which remained on an unsatisfactory
level. Operating profit after the restructuring costs was EUR 0.4 million (3.2)
or 1.0 per cent of sales (6.6).
Industry
1-3/2010 1-3/2009 Change, % 2009
Order stock, EUR million 69.6 66.8 4.2 39.3
Sales, EUR million 35.8 51.3 -30.2 162.0
Operating profit excl.
restructuring costs, EUR million -4.1 1.5 na -3.5
Operating margin excl.
restructuring costs, % -11.5 2.9 -2.2
Operating profit, EUR million -4.3 -0.9 na -10.1
Operating margin, % -12.0 -1.8 -6.2
Personnel at end of period 1795 2554 -29.7 1790
1-3/2010
The Industry business group's order stock returned to a level higher than since
late 2008 and was up by 4.2 per cent on the corresponding period last year. The
order stock amounted to EUR 69.6 million (66.8) at the end of the first quarter
of 2010. Clients' increasing activity, especially in the forest industry, picked
up the order intake during the first months of 2010 and some new pulp and paper
projects were booked during the first quarter, e.g. a EUR 5 million board mill
engineering project in the UK and an approximately EUR 7.5 million pulp mill
project in Brazil. The order stock increased 77.1 per cent from EUR 39.3 million
in the fourth quarter of 2009.
Net sales for the first quarter of 2010 were EUR 35.8 (51.3) million. The high
comparison figure is partly explained by the large projects that were in their
final execution phases during the corresponding period of 2009. In contrast with
this, lack of large orders and the low level of maintenance and modernisation
investments burdened the volumes during the first quarter of 2010. Sales
increased somewhat from EUR 33.6 million in the fourth quarter of 2009.
Operating profit before restructuring costs of EUR 0.2 million was EUR -4.1
(1.5) million and the operating margin was -11.5 per cent of sales (2.9). The
profitability fell from the year before as project activity was at a lower
level. The first quarter 2009 profit also benefitted from execution of large
EPCM projects. Operating profit after restructuring costs was EUR -4.3 million
(-0.9) or -12.0 per cent of sales (-1.8).
Urban & Mobility
1-3/2010 1-3/2009 Change, % 2009
Order stock, EUR million 193.6 198.2 -2.3 194.8
Sales, EUR million 47.5 48.9 -2.9 184.5
Operating profit excl.
restructuring costs, EUR million 3.6 4.1 -12.2 15.5
Operating margin excl.
restructuring costs, % 7.6 8.4 8.4
Operating profit, EUR million 3.6 3.8 -5.3 14.9
Operating margin, % 7.6 7.8 8.1
Personnel at end of period 1807 1866 3.2 1858
1-3/2010
The order stock at EUR 193.6 million was stable both compared with the year
before (198.2) and to the fourth quarter of 2009 (194.8). Order intake has
remained stable in all the regions.
Also net sales remained stable and amounted to EUR 47.5 million (48.9) for the
first quarter of 2010. The net sales increased slightly from the EUR 46.7
million of the fourth quarter of 2009.
Operating profit amounted to EUR 3.6 million and the operating margin was 7.6
per cent of sales. Operating profit before restructuring costs in the first
quarter of 2009 was EUR 4.1 million and 8.4 per cent of sales and EUR 3.8
million and 7.8 per cent of sales after restructuring costs. Profitability in
the first quarter of 2010 was slightly burdened by continuous business
development and growth efforts in new markets such as China, India and Latin
America.
Water & Environment
1-3/2010 1-3/2009 Change, % 2009
Order stock, EUR million 70.5 78.8 -10.5 62.3
Sales, EUR million 19.3 21.0 -8.1 86.5
Operating profit excl.
restructuring costs, EUR million 0.5 0.8 -37.5 5.1
Operating margin excl.
restructuring costs, % 2.6 3.8 6.0
Operating profit, EUR million 0.5 0.8 -37.5 4.9
Operating margin, % 2.6 3.8 5.7
Personnel at end of period 898 951 -5.6 908
1-3/2010
Order stock at EUR 70.5 million declined by 10.5 per cent from the year before
(78.8) but increased by 13.2 per cent from the EUR 62.3 million in the fourth
quarter of 2009. The good order inflow was driven especially by projects in the
developing countries benefitting from funding from international institutions.
Net sales decreased 8.1 per cent from the year before and amounted to EUR 19.3
(21.0) million. The net sales also decreased somewhat from the EUR 22.9 million
in the fourth quarter of 2009 as the activity and investment levels remained
relatively low both in Finland and Germany which are the biggest markets for the
Water & Environment business group.
Operating profit amounted to EUR 0.5 (0.8) million and the operating margin was
2.6 per cent of sales (3.8). Profitability decreased clearly from the year
before.
Management Consulting
1-3/2010 1-3/2009 Change, % 2009
Order stock, EUR million 20.5 21.6 -5.1 18.0
Sales, EUR million 17.2 17.8 -3.4 68.5
Operating profit excl.
restructuring costs, EUR million 0.3 -0.2 na 1.2
Operating margin excl.
restructuring costs, % 1.7 -1.1 1.8
Operating profit, EUR million 0.3 -0.6 na -0.4
Operating margin, % 1.7 -3.4 -0.7
Personnel at end of period 445 542 -17.9 451
1-3/2010
The order stock at EUR 20.5 million decreased by 5.1 per cent from the year
before (21.6) but increased by 13.9 per cent from the EUR 18.0 million in the
fourth quarter of 2009. The increase reflects the strengthening demand
especially in the industry sector for bio-energy and performance improvement
related services.
Net sales at EUR 17.2 million continued stable both compared with the year
before (17.8) and with the fourth quarter of 2009 (17.8).
Operating profit amounted to EUR 0.3 million and the operating profit margin was
1.7 per cent of sales. Operating profit before restructuring cost in the first
quarter of 2009 was EUR -0.2 million and -1.1 per cent of sales and after
restructuring costs EUR -0.6 million and -3.4 per cent of sales.
Group overhead
Unallocated costs in the first quarter of 2010 were EUR 1.0 million (1.1),
representing 0.6 per cent of sales (0.6).
GROUP FINANCIAL RESULT
The consolidated operating loss for the report period, including restructuring
costs of EUR 1.3 million, totalled EUR -0.4 million (5.2). Compared with the
year before, operating profit increased in Management Consulting and was rather
stable in Urban & Mobility but decreased in all other business groups due to
lower investment activity and lack of larger assignments. Compared with the
fourth quarter of 2009 the operating profit declined in all other business
groups than in Industry, where profitability improved somewhat although it was
still negative. The consolidated operating margin, including restructuring
costs, declined to -0.2 per cent from 2.8 per cent the year before.
The net financial items was EUR -0.2 million (1.1).
Profit before taxes was negative and totalled EUR -0.6 (6.3).
Income taxes were EUR -0.5 million (-2.0).
Net profit for the period was EUR -1.1 (4.3) million of which EUR -0.9 million
was attributable to equity holders of the parent company and EUR -0.2 million to
minority interests.
Earnings per share were EUR -0.02 (0.07).
BALANCE SHEET
The consolidated balance sheet is strong. The consolidated balance sheet
amounted to EUR 516.4 million at the end of the first quarter of 2010 which was
on the same level as at year-end 2009 (515.4) and EUR 19.3 million lower than at
end March 2009. Total equity at the end of the report period was EUR 179.5
million (177.1). Total equity attributable to equity holders of the parent
company was EUR 172.5 million (169.0) or EUR 2.92 per share (2.87).
Return on equity (ROE) was -2.3 per cent (9.4). Return on investment (ROI) was
0.1 per cent (11.1).
CASH FLOW AND FINANCING
Net cash from operating activities in the reporting period was EUR -27.7 million
(-15.0), representing EUR -0.47 per share. Net cash before financing activities
was EUR -30.2 million (-23.4). The first quarter cash flow reflects a seasonal
pattern, lack of project advances, growth in infrastructure projects and
deterioration of client payment behaviour.
Net debt at the end of the reporting period totalled EUR 14.3 (-22.2) million.
The net debt/equity ratio (gearing) was 8.0 (-12.5) per cent. The equity ratio
was 39.9 per cent (37.4).
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 108.0 (152.3)
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 2.9
million, of which EUR 1.5 million consisted mainly of computer software, systems
and hardware and EUR 1.4 million was due to acquisitions.
Capital expenditure, EUR million 1-3/2010 1-3/2009 2009
Capital expenditure, operative 1.5 1.8 4.8
Capital expenditure, shares 1.4 1.4 5.0
Capital expenditure, total 2.9 3.2 9.8
HUMAN RESOURCES
Personnel (FTE) by business
group, at the end of the period 1-3/2010 1-3/2009 Change, % 2009
Energy 1330 1613 -17.5 1402
Industry 1795 2554 -29.7 1790
Urban & Mobility 1807 1866 -3.2 1858
Water & Environment 898 951 -5.6 908
Management Consulting 445 542 -17.9 451
Group staff and shared resources 141 121 16.5 121
Personnel, total 6416 7647 -16.1 6530
Personnel (FTE) by geographic
area, at the end of the period 1-3/2010 1-3/2009 Change, % 2009
Nordic countries 2509 3143 -20.2 2510
Other Europe 2703 2993 -9.7 2826
Asia 516 702 -26.5 529
North America 205 263 -22.1 198
South America 376 397 -5.3 344
Other areas 106 149 -29.0 123
Personnel, total 6416 7647 -16.1 6530
Personnel structure
The Group had an average of 6472 (7711) employees (FTEs) during the year, which
is 16.1 per cent less than a year before. The number of personnel at the end of
the period was 6416 (7647).
Performance share plan 2008-2010
In December 2007, the Board of Directors of Pöyry PLC approved a share-based
incentive plan for the key personnel with earning periods of calendar years
2008, 2009 and 2010. The rewards will be paid partly (50 per cent) in the
company's shares and partly (50 per cent) in cash in 2009, 2010 and 2011.
In February 2010 the Board of Directors of Pöyry PLC resolved on the number of
shares of the plan for the year 2010.
In the year 2010 the value of the plan will correspond 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 will
include approximately 300 persons in the year 2010. On 19 April, 97 per cent of
the grants for the earning period 2010 had been allocated.
GOVERNANCE
The Annual General Meeting of Pöyry PLC was held on 11 March 2010. The AGM
adopted Pöyry PLC's financial statements and consolidated statements and granted
the members of the Board of Directors, the company's President and CEO, and the
Deputy to the President and CEO discharge from liability for the financial
period 1 January to 31 December 2009.
The AGM resolved that a dividend of EUR 0.10 be distributed per outstanding
share for the financial year 2009. The dividend was paid on 23 March 2010.
The AGM resolved that the Board of Directors consist of seven (7) ordinary
members. The AGM re-elected the following members to the Board of Directors:
Henrik Ehrnrooth, Pekka Ala-Pietilä, Alexis Fries, Heikki Lehtonen, Michael
Obermayer and Karen de Segundo. The AGM elected Georg Ehrnrooth as a new member
of the Board. Harry Piehl gave notice that he was not available for re-election.
The AGM resolved that the annual fees of the members of the Board of Directors
be EUR 40 000 for a member, EUR 50 000 for the Vice Chairman and EUR 60 000 for
the Chairman of the Board, and that the annual fee of the members of the
committees of the Board of Directors be EUR 15 000. In addition, the AGM
authorised the Board of Directors to decide about an additional fee of not more
than EUR 15 000 per annum for each of the foreign residents of the Board of
Directors and an additional fee of not more than EUR 5 000 per annum for each of
the foreign residents of the committees. The authorisation shall be in force
until the next AGM.
In its assembly meeting immediately following the AGM, the Board of Directors
elected Henrik Ehrnrooth as Chairman and Heikki Lehtonen as Vice Chairman.
Heikki Lehtonen, Alexis Fries and Georg Ehrnrooth were elected members of the
Audit Committee. Henrik Ehrnrooth, Heikki Lehtonen, Karen de Segundo and Pekka
Ala-Pietilä were elected members of the Nomination and Compensation Committee.
In accordance with the authorisation by the AGM the Board resolved to pay an
additional fee of EUR 15 000 per annum to the foreign residents of the Board of
Directors and an additional fee of EUR 5 000 per annum to the foreign residents
of the committees.
KPMG Oy Ab, Authorised Public Accountants, continues as Pöyry PLC's auditors
based on the resolution made in the AGM on 6 March 2002. Sixten Nyman,
Authorised Public Accountant, continues as responsible auditor.
AUTHORISATIONS
The AGM 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 company's own shares can be acquired in
accordance with the decision of the Board of Directors either through public
trading or by public offer at their market price at the time of purchase. The
authorisation shall be in force 18 months from the decision of this AGM. The
acquisition of shares reduces the company's distributable unrestricted
shareholders' equity.
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 on terms and
conditions to be determined separately by the Board of Directors.
CHANGES IN EXECUTIVE MANAGEMENT
Bernd Kordes, Executive Vice President of Pöyry PLC and President of the Water &
Environment business group, announced on 12 January 2010 that he will leave
Pöyry and his membership in the Group Executive Committee ended on the same day.
On 1 February 2010 Pöyry announced two appointments to the Group Executive
Committee: Dr. Norbert Gorny, 46, was appointed Executive Vice President of
Pöyry PLC and President of the Management Consulting business group, and Martin
Bachmann, 42, was appointed Executive Vice President of Pöyry PLC and President
of the Water & Environment business group.
On 7 April 2010, after the end of the reporting period, 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. Esa Ikäheimonen will
carry on his duties as CFO and member of the Group Executive Committee of Pöyry
during a transition period, however, not longer than 30 September 2010.
SHARE CAPITAL AND SHARES
The share capital of Pöyry PLC on 31 March 2010 totalled EUR 14 588 478. The
total number of shares including treasury shares totalled 59 027 482 at the end
of the first quarter of 2010.
On 19 April 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 4.1 million.
SHARES SUBSCRIBED FOR UNDER THE OPTION PROGRAMME 2004
Pursuant to Pöyry's stock option plan 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.
The stock options issued under Pöyry PLC's ongoing stock option plan 2004 at the
end of the reporting period 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 31 March 2010 was EUR 10.75. The volume
weighted average share price during the report period was EUR 10.26, the highest
quotation being EUR 12.30 and the lowest EUR 9.02. The share price decreased
approximately 4 percent from the end of 2009. During the report period
approximately 5.9 million Pöyry shares were traded on the NASDAQ OMX Helsinki,
corresponding to a turnover of approximately EUR 60.9 million. The average daily
trading volume was about 95 600 shares or approximately EUR 1.0 million.
On 31 March 2010, the total market value of Pöyry's shares was EUR 630.4 million
excluding treasury shares held by the company and EUR 634.5 million including
treasury shares.
OWNERSHIP STRUCTURE
During the report period, the number of registered shareholders increased from
6 933 at the end of 2009 to 7 838 at the end of the first quarter of 2010,
representing growth of 13 per cent.
Corbis S.A. continued to be the largest shareholder with 31.57 per cent of the
voting rights. The Chairman of the Board of Directors of Pöyry, Henrik
Ehrnrooth, holds indirectly with his brothers Georg Ehrnrooth and Carl-Gustaf
Ehrnrooth a controlling interest in Corbis S.A.
At the end of the reporting period a total of 16.1 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
48.5 per cent of the voting rights.
FLAGGINGS
Pöyry PLC received on 5 February 2010 a disclosure under Chapter 2, Section 9 of
the Securities Market Act, according to which, as a result of share transactions
concluded on 3 February 2010, the holdings of mutual funds managed by I.G.
International Management Limited (Corporate Number 201041), Ireland, decreased
to less than five percent of Pöyry PLC's shares and votes. According to the
disclosure, I.G. International Management Limited on that date held 2 934 342
shares which is 4.97 per cent of Pöyry PLC's shares and votes.
No other disclosures of changes in holdings were received by the time of the
release of this report.
BUSINESS DEVELOPMENT
Pöyry's vision for 2020 was launched in late 2009. In early 2010 the Group
Executive Committee started a strategy work in order to turn the vision into
concrete strategic plans and actions.
The action programme designed to maintain Pöyry's profitability at an acceptable
level throughout the current recession is moving ahead. At the end of the first
quarter of 2010, annualised cost savings of some EUR 20 million were achieved
compared with the savings target for fixed and other non-project related
expenses of EUR 30 million.
MOST SIGNIFICANT RISKS AND BUSINESS UNCERTAINTIES
The major risks relate to the potential prolongation and further deterioration
of the world economy. The fall in demand for Pöyry's services may lead to
falling sales volumes and thus a fall in profits.
The impacts of the economic downturn have been most clearly reflected in the
operations of Pöyry's Industry and Energy business groups, and currently it is
difficult to predict exactly how the demand will recover for these business
groups.
In response to these risks Pöyry continues an action programme to keep the
Group's profitability at as high a level as possible, whilst ensuring resources
to deliver growth opportunities developing as the order stock grows. The
programme's focus is on sales, resources, cost structure, investments and
financing.
Pöyry's financial position is solid and its strong balance sheet supports
securing its liquidity. Difficulties in financing may cause problems for Pöyry's
clients, which may lead them to postpone projects or even to cancel existing
orders. In such cases there is also an increased risk of credit losses.
THE GROUP'S FUTURE PROSPECTS
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 is 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 costs. 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 is expected to improve.
Vantaa, 20 April 2010
PÖYRY PLC
Board of Directors
THE INTERIM REPORT 1 JANUARY - 31 MARCH 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
EUR million 1-3/2010 1-3/2009 1-12/2009
------------------------------------------------------------------------
NET SALES 162.7 187.8 673.5
------------------------------------------------------------------------
Other operating income 0.2 0.2 0.8
Share of associated companies' results 0.1 0.2 0.5
Materials and supplies -1.7 -0.9 -7.0
External charges, subconsulting -20.2 -23.4 -90.6
Personnel expenses -100.3 -112.6 -401.5
Depreciation -2.0 -2.1 -8.2
Other operating expenses -39.2 -44.0 -155.9
OPERATING PROFIT -0.4 5.2 11.6
------------------------------------------------------------------------
Proportion of net sales, % -0,2 2.8 1.7
Financial income 0.5 1.9 5.0
Financial expenses -1.5 -1.4 -5.6
Exchange rate differences 0,8 0.6 1.4
PROFIT BEFORE TAXES -0.6 6.3 12.4
------------------------------------------------------------------------
Proportion of net sales, % -0,4 3.4 1.8
Income taxes -0.5 -2.0 -4.4
------------------------------------------------------------------------
NET PROFIT FOR THE PERIOD -1,1 4.3 8.0
------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME
Translation differences 2.4 0.6 4.2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,3 4.9 12.2
Net profit attributable to:
Equity holders of the parent company -0,9 3.8 6.5
Minority interest -0.2 0.5 1.5
Total comprehensive income attributable to:
Equity holders of the parent company 1.5 4.4 10.7
Minority interest -0.2 0.5 1.5
Earnings/share, attributable to the equity
holders of the parent company, EUR -0.02 0.07 0.11
Corrected with dilution effect -0.02 0.07 0.11
STATEMENT OF FINANCIAL POSITION 31 March 31 March 31 December
EUR million 2010 2009 2009
------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Goodwill 104.5 98.0 101.3
Intangible assets 5.5 6.1 5.4
Tangible assets 16.4 18.4 16.6
Shares in associated companies 5.9 6.1 5.5
Other shares 1.9 1.9 1.9
Loans receivable 1.4 0.1 1.5
Deferred tax receivables 10,3 7.3 9.5
Pension receivables 0.3 0.9 0.3
Other 9.0 7.1 7.5
------------------------------------------------------------------------
155.2 145.9 149.5
CURRENT ASSETS
Work in progress 96.7 75.4 78.8
Accounts receivable 136.2 131.9 127.3
Loans receivable 0.0 0.7 0.1
Other receivables 7.5 12.0 7.5
Prepaid expenses and accrued income 12.8 17.5 10.2
Financial assets at fair value through
profit and loss 45.4 0,0 27.9
Cash and cash equivalents 62.6 152.3 114.1
------------------------------------------------------------------------
361.2 389.8 365.9
TOTAL 516.4 535.7 515.4
------------------------------------------------------------------------
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 2.9 20.3 2.9
Invested free equity reserve 57.2 5.8 56.6
Translation difference -15.8 -21.6 -18.2
Retained earnings 113.6 117.5 120.2
------------------------------------------------------------------------
172.5 169.0 176.0
Minority interest 7.0 8.1 8.0
------------------------------------------------------------------------
179.5 177.1 184.0
LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing non-current liabilities 102.1 100,3 101.3
Pension obligations 7.4 7.7 7.4
Deferred tax liability 1.7 6.3 1.7
Other non-current liabilities 2.4 4.9 2.3
------------------------------------------------------------------------
113.6 119.2 112.7
CURRENT LIABILITIES
Amortisations of interest bearing non-
current liabilities 19.6 20,6 19.8
Interest bearing current liabilities 0.6 9,2 1.7
Provisions 8.8 8.3 8.3
Project advances 66.3 61.7 66.0
Accounts payable 20.0 20.4 21.5
Other current liabilities 31.5 34.3 29.3
Current tax payable 0.4 1.9 4.2
Accrued expenses and deferred income 76.1 83.0 68.0
------------------------------------------------------------------------
223.3 239.4 218.8
TOTAL 516.4 535.7 515.4
STATEMENT OF CASH FLOWS
EUR million 1-3/2010 1-3/2009 1-12/2009
-----------------------------------------------------------------------
FROM OPERATING ACTIVITIES
Net profit for the period -1.1 4.3 8.0
Depreciation and value decrease 2.0 2.1 8.2
Gain on sale of fixed assets 0.0 0.0 0.0
Share of associated companies' results -0.1 -0.2 0.2
Financial income and expenses 0.2 -1.1 -0.8
Income taxes 0.5 2.0 4,4
Change in work in progress -17.9 -6.1 -9.5
Change in accounts and other receivables -13.0 8.6 18.3
Change in advances received 0.3 -11.9 -7.6
Change in payables and other liabilities 4.0 -1.3 -15.7
Received financial income 0.5 1.9 5.0
Paid financial expenses -1.7 -1.6 -5.7
Paid income taxes -1.4 -11.7 -15.2
-----------------------------------------------------------------------
Total from operating activities -27.7 -15.0 -10.4
CAPITAL EXPENDITURE
Investments in shares in subsidiaries
deducted with cash acquired -1.0 -6.8 -10.6
Investments in other shares 0.0 0.0 -0.2
Investments in fixed assets -1.5 -1.8 -4.7
Sales of fixed assets 0.0 0.2 0.3
-----------------------------------------------------------------------
Capital expenditure total, net -2.5 -8.4 -15.2
Net cash before financing -30.2 -23.4 -25.6
FINANCING
New loans 0.0 0.0 20.0
Repayments of loans -1.0 -0.5 -20.5
Change in current financing -0.2 8.5 0.7
Dividends -6.5 -36.8 -39.0
Acquisition of own shares 0.0 -1.2 -1.9
Share subscription 0.6 0.1 0.4
-----------------------------------------------------------------------
Net cash from financing -7.1 -30.0 -40.3
Change in cash and cash equivalents and in
other liquid assets -37.3 -53.4 -65.9
Cash and cash equivalents and other liquid
assets at the beginning of the period 142.0 203.7 203.7
Change in the fair value of financial
assets 0.1
Impact of translation differences in
exchange rates 3.3 2.0 4.1
Cash and cash equivalents and other liquid
assets at the end of the period 108.0 152.3 142.0
-----------------------------------------------------------------------
Financial assets at fair value through
profit and loss 45.4 0.0 27.9
Cash and cash equivalents 62.6 152.3 114.1
Cash and cash equivalents and other liquid
assets 108.0 152.3 142.0
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 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 0.0 0,0
Payment of
dividend -37.9 -37.9 -37.9
Acquisition
of own shares -1.2 -1.2 -1.2
Transfer. re-
tained
earnings 0.0 0.0
Expenses from
share-based
incentive
programmes 0.4 0.4 0.4
Comprehensive
income for
the period -0.2 0.8 3.8 4.4 0.5 4.9
Changes for
the period 0.0 0.0 -0.2 0.0 0.8 -34.9 -34.3 0.5 -33.8
---------------------------------------------------------------------------
Equity
31 March 2009 14.6 32.4 20.3 5.8 -21.6 117.5 169.0 8.1 177.1
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 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 0.6 0.6 0.6
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 0.3 0.3 0.3
Minority
change 0.0 0.0
Comprehensive
income for
the period 2.4 -0.9 1.5 -0.2 1.3
Changes for
the period 0.0 0.0 0.0 0.6 2.4 -6.5 -3.5 -1.0 -4.5
---------------------------------------------------------------------------
Equity
31 March 2010 14.6 0.0 2.9 57.2 -15.8 113.6 172.5 7.0 179.5
31 March 31 March 31 December
EUR million 2010 2009 2009
--------------------------------------------------------------------------------
Contingent liabilities
Other own obligations
Pledged assets 1.6 1.5 2.0
Project and other guarantees 55.4 48.9 55.0
Claims and litigations 3.0 0.0 3.0
For other parties
Pledged assets 0.0 0.2 0.0
Other obligations 0.1 0.1 0.1
Rent and lease obligations 108.9 120.1 111.0
Derivative instruments
Foreign exchange forward contracts,
nominal values 46.3 27.2 33.4
Foreign exchange forward contracts, 0.4 0.4 0.5
fair values -0.4 -0.7 -0.4
Currency options, nominal values
Purchased 0.0 3.8 0.2
Written 0.0 2.8 0.0
Currency options, fair values
Purchased 0.0 0.1 0.0
Written 0.0 -0.1 0.0
Interest rate swaps, nominal values 42.4 11.0 41.6
of which basis swaps 31.8 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 31 March 2010 a total of 133 514
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 Deputy to the
President and CEO ownerships).
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.
KEY FIGURES 1-3/2010 1-3/2009 1-12/2009
---------------------------------------------------------------------------
Earnings / share, EUR -0.02 0.07 0.11
Corrected with dilution effect -0.02 0.07 0.11
Equity attributable to equity holders of the
parent company/share, EUR 2.92 2.87 2.98
Return on investment, % p.a. 0.1 11.1 5.3
Return on equity, % p.a. -2.3 9.4 4.1
Equity ratio, % 39.9 37.4 40.9
Equity / Assets ratio, % 34.8 33.1 35.7
Net debt / Equity ratio (gearing), % 8.0 -12.5 -10.5
Net debt, EUR million 14.3 -22.2 -19.3
Consulting and engineering, EUR million 527.9 539.8 483.6
EPC, EUR million 1.8 6.6 2.1
Order stock total, EUR million 529.7 546.4 485.7
Capital expenditure, operating, EUR million 1.5 1.8 4.8
Capital expenditure in shares, EUR million 1.4 1.4 5.0
Personnel in Group companies on average 6472 7711 7052
Personnel in Group companies at the end of the
period 6416 7647 6530
Personnel in associated companies at the end
of the period 139 140 141
CHANGE IN INTANGIBLE ASSETS
EUR million
---------------------------------------------------------------------------
Book value at beginning of period 5.4 6.2 6.2
Acquired companies 0.0 0.0 0.0
Capital expenditure 0.5 0.5 1.2
Decreases
Unternehmensinformation / Kurzprofil:
Datum: 21.04.2010 - 07:32 Uhr
Sprache: Deutsch
News-ID 19380
Anzahl Zeichen: 0
contact information:
Town:
Vantaa
Kategorie:
Business News
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"Interim Report 1 January - 31 March 2010"
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