Pöyry's Interim Report 1 January - 30 September 2009
(Thomson Reuters ONE) - PÿYRY PLC Interim Report 23 October 2009 at 8:30 a.m.The Pöyry Group's net sales for the period under review were EUR512.0 million (608.1 in the corresponding period 2008). Profit beforetaxes was 11.2 (76.3) million. Profit before taxes includes EUR 9.9million non-recurring expenses related to adaptation measures.The Group's consolidated balance sheet is healthy. The equity ratiowas 39.1 (47.9) per cent and the net debt/equity ratio (gearing) 2.0(-28.8) per cent.Earnings per share were EUR 0.09 (0.87) and the return on investment6.8 (49.6) per cent.The order stock decreased by EUR 25.2 million during the period underreview to EUR 513.9 million. The number of personnel decreased to theequivalent of 6682 full-time employees at the end of the reviewperiod (7924 at the end of 2008). The impact of the adaptationmeasures in the current capacity exceeds the target of 12 per centcapacity cuts.Pöyry's net sales for 2009 are estimated to decrease and profitbefore taxes is estimated to decrease significantly compared with2008.The interim report has been prepared in accordance with the IAS 34following the same accounting principles as in the annual financialstatements for 2008. From the beginning of 2009, the Group adoptedthe amended IAS 1 Presentation of the Financial Statements standardand IFRS 8 Operating Segments standard. The amended standards have nosignificant impact on the presentation of the interim report.The data in this interim report are unaudited.Business groups (Operating segments)EnergyNet sales for the period under review were EUR 161.1 (177.0) million.Operating profit was EUR 7.2 (20.2) million including EUR 1.7 millionnon-recurring expenses.Demand for energy-related services weakened and project go-aheaddecisions were postponed in most markets during the review period.Project margins also declined slightly due to increased competition.The capacity was further adjusted during the period under review andthe capacity declined by about 200 persons, more than 10 per cent, inthe business group's office network since the beginning of 2009.In spite of the slow-down in decision-making on investment projects,the order stock remained on a good level at EUR 186.3 million (196.4at the end of 2008). The most important new projects were the EPCcontract with the Styrian Utility Steweag/Steg for rehabilitation ofthe 110 kV substation Neudorf/Werndorf in Austria (EUR 6.5 million)and the owner's engineering services contract by OMV PowerInternational GmbH for an 800 MW combined cycle power plant projectin Haiming, Germany (EUR 6 million). Important new projects receivedduring the third quarter were the contract with the Ministry ofAgricultural Development and Agrarian Services of the Government ofSri Lanka for rehabilitation of thirty-two dams in Sri Lanka (EUR 4.5million), the EPCM contract with Vantaa Energy Ltd for awaste-to-energy plant to be built in Vantaa, Finland (EUR 8 million)and the engineering, procurement and supply contract for a 78 MWdistrict heating system in Pucheng County, Shaanxi province, China(EUR 4.2 million).Forest IndustryNet sales for the period under review were EUR 137.7 (222.0) million.Operating profit was EUR -9.0 (41.3) million. The operating loss forthe period under review included EUR 7.3 million non-recurringexpenses relating to personnel reductions.The economic downturn has impaired forest industry companies'profitability and hampered the availability of investment financingglobally. For this reason, projects have been postponed, preparationsfor new projects have been delayed and the number of consultingassignments has declined. Capacity was adapted to match reduceddemand in several markets, including Finland, Brazil, North America,Russia and Sweden. The personnel reductions during the period underreview equalled a capacity of about 1000 persons (34 per cent) andwere partly implemented with temporary lay-offs.The business group's order stock declined to EUR 54.4 million (86.3at the end of 2008). The most important new projects were thepermitting services contract with Paroc Oy Ab, Finland, for agreenfield mineral wool plant in Chudovo, Russia (EUR 1.5 million)and engineering services for Investlesprom's Segezha pulp mill inRussia (EUR 6 million). The business group signed a long-term serviceagreement with Larox Corporation, Finland, for the supply ofengineering and project services.The President and CEO of Pöyry PLC, Mr. Heikki Malinen took over asof 24 April 2009 the duties of the President of the Forest Industrybusiness group beside his own position. Dr Martin Kuzaj, 52, has beenappointed Executive Vice President of Pöyry PLC and President of theForest Industry business group and he has taken over his duties on 19October 2009. Martin Kuzaj is a member of the Group ExecutiveCommittee of Pöyry PLC.TransportationNet sales for the period under review were EUR 88.3 (76.5) million.Operating profit amounted to EUR 7.1 (5.9) million.Demand for services related to transportation systems continued at asteady rate. Demand related to road and rail-bound transportationsystems was particularly brisk with an increased activity in largeconcession type projects being carried out by contractors. Thebusiness group continued to strengthen its position in local andinternational markets, and the capacity increased by 11 per cent.The order stock increased to EUR 163.1 million (130.9 at the end of2008) at the end of the period under review. The most important newprojects were the engineering contract with the Swiss federal railwaySBB for a new operation control centre (EUR 3.5 million), designcontracts with Strabag AG for road rehabilitation programmes inRomania (EUR 3.2 million) and the contract with the Metro Company ofSao Paulo, Brazil for the extension of the city's metro with a newLine 4 (EUR 3 million). Important new projects received during thethird quarter were the contract with the Swiss Federal Roads Officefor rehabilitation of the Seelisberg tunnel in Switzerland (EUR 5.0million) and the design contract for the new airport rail link inKatowice, Poland with PKP Polskie Linie Kolejowe S.A. (EUR 7.5million).Water & EnvironmentNet sales for the period under review were EUR 63.6 (62.2) million.Operating profit was EUR 3.4 (2.4) million.Demand for services related to the water sector remained stable andthere are signs of increasing demand for environmental services fromindustry.The order stock amounted to EUR 69.0 million at the end of the periodunder review (76.8 at the end of 2008). The most important newprojects received were the water and sanitation and trainingprogramme assignments in Tanzania and Niger (EUR 3.7 million) andtechnical assistance services for the main waste water treatmentplant in Paris (EUR 3 million).Construction ServicesNet sales for the period under review were EUR 59.7 (68.9) million.Operating profit was EUR 4.7 (8.0) million. The operating profit wasdepressed by non-recurring items of about EUR 0.6 million related topersonnel reductions.Investment activity in the office and commercial building sectorsremained very weak. The activity in infra and energy sector projects,consultancy and small engineering projects remained relatively good.The amount of personnel in the business group was adapted and thecapacity decreased by about 120 persons (12 per cent), mainly inFinland. The reduction was partly implemented with temporarylay-offs.The order stock has decreased to EUR 41.0 (48.3 at the end of 2008)million. The most important new projects were the contract with OyPrimula Ab for the implementation of the company's production andlogistics project at Järvenpää, Finland, and the contracts withLänsimetro Oy for the Western Metro extension in Helsinki, Finland(EUR 1.3 million).AcquisitionsEnergyPöyry expanded its operations in May 2009 by acquiring the entireshare capital of Aquarius International Consultants Pty Ltd, anAustralian engineering and marine consulting firm. The engineeringservices of Aquarius International Consultants include offshorestructural, naval architecture and marine operations and it has aclientele of international oil companies. The company's annual netsales are EUR 1.3 million and its business is profitable. The companyhas been consolidated into Pöyry as of 1 May 2009.Construction ServicesThe Chinese authorities approved the acquisition of Shanghai Kang DaoConstruction Company Ltd in March 2009. Shanghai Kang DaoConstruction Company is primarily engaged in project management forindustrial and commercial real estate development and constructionprojects. Pöyry has consolidated the result and balance sheet of thecompany as of 1 March 2009.Pöyry acquired the remaining 30 per cent of the Finnish architecturaldesign and real estate consulting firm Pöyry Evata Oy. The companyand its subsidiary Pöyry Architects Oy have been consolidated 100 percent into Pöyry as of 1 July 2007.Order stockThe Group's order stock is relatively good in the light of theeconomic environment. It decreased by EUR 25.2 million during theperiod under review, totalling EUR 513.9 million at the end ofSeptember. At the end of 2008 the order stock was EUR 539.1 million.PersonnelThe number of personnel in the Group decreased to the equivalent of6682 full-time employees (7924 at the end of 2008). The capacity wasadapted in particular in the Forest Industry business group but alsoin the Construction Services and Energy business groups. About halfof the capacity reduction was implemented with temporaryarrangements.Statement of financial positionThe Group's consolidated balance sheet remains healthy. The equityratio at the end of the review period was 39.1 (41.7 at the end of2008) per cent. The Group's liquidity is good. The net debt/equityratio (gearing) was 2.0 (-28.8) per cent. At the end of the reviewperiod the Group's cash and cash equivalents were EUR 128.9 (88.1)million, interest bearing liabilities EUR 132.5 (31.5) million andnet cash EUR -3.6 (56.6) million. The Group had long-term unusedoverdraft facilities at the end of the review period amounting to EUR92,4 (93,1) million.Capital expenditureThe Group's capital expenditure for the period under review totalledEUR 8.0 (13.1) million, of which EUR 4.2 (5.3) million wereinvestments in company acquisitions.Principal short term risks and uncertaintiesThe principal short term risks and uncertainties relate to theprolongation of the global economic downturn and resulting delays ininvestment activity. These risks and uncertainties primarily relateto the energy, forest industry and construction services segments.If the weak demand and investment activity further deteriorate, theymay cause the profitability to decrease further. In order to reducethe risk, the measures to adapt the operations and to streamline thecost base are continued throughout the Group.There is a risk that claims for errors, omissions and professionalnegligence as well as bad debts and payment delays will increase dueto the difficult economic environment.Risks and uncertainties also relate to the significant adaptationmeasures and changes in the organisation and operating model beingimplemented in the Forest Industry business group. To a lesserextent, the adaptation measures and changes in the Energy andConstruction Services business groups also create risks anduncertainties.A detailed report on the Group's most significant risks and riskmanagement is given in the Financial Statements of 2008.Share capital and sharesThe total number of shares on 1 January 2009 was 58 878 602 and on 22October 2009 the number was 58 903 510.Option programme 2004Pöyry PLC issued in 2004 stock options to the management of the Groupas well as to a wholly-owned subsidiary of Pöyry PLC. The number ofstock options is 550 000, entitling to subscription of four shareseach, i.e. a total of 2 200 000 shares in Pöyry PLC.The share subscription periods are the following: for stock options2004A (660 000 shares) between 1 March 2007 and 31 March 2010; for2004B (660 000 shares) between 1 March 2008 and 31 March 2011; andfor 2004C (880 000 shares) between 1 March 2009 and 31 March 2012.All stock options have been issued and their receipt confirmed.At the end of 2008, 399 756 new shares had been subscribed with69 532 stock options 2004A and 30 407 stock options 2004B. During theperiod under review 24 908 new shares were subscribed with 4 127stock options 2004A and with 2 100 stock options 2004B. Following theregistration of the subscribed shares, the total number of shares is58 903 510.Performance share plan 2008-2010In December 2007, the Board of Directors of Pöyry PLC approved ashare-based incentive plan for the key personnel. The plan comprisesthree earning periods, which are the calendar years 2008, 2009 and2010. The rewards will be paid partly (50 per cent) in the company'sshares and partly (50 per cent) in cash in 2009, 2010 and 2011. Thecriteria for the reward payouts for the years 2008 and 2009 are theGroup's earnings per share (EPS) and net sales.At the time of approval of the payouts for the earning period 2008,the incentive plan included 287 persons. For the earning period 2008,the payout ratio was 180.89 per cent corresponding to a value of433 454 shares. The payments were made to the participants in April2009.The value of the plan for the earning period 2009 will correspond tothe value of 400 000 shares if the performance of the Group is inline with the earnings criteria for target performance set by theBoard of Directors. If the Group's performance exceeds the target andreaches maximum performance, as defined by the Board, the value ofthe plan can reach up to the value of 800 000 shares for the earningperiod 2009. The incentive plan for the earning period 2009 includesapproximately 300 persons. On 22 October 2009, 97 per cent of thegrants for the earning period 2009 had been allocated.The fair value of the reward is expensed until the target group isentitled to the reward and the shares are freely transferable. Thefair value of the share is the share price on the date at which thetarget group has agreed to the conditions of the plan reduced by theestimated dividends. The fair value of the cash proportion isremeasured at each reporting date based on the share price at thereporting date.Authorisation to issue sharesThe Annual General Meeting (AGM) on 10 March 2008 authorised theBoard of Directors to decide on issuing new shares and to convey thecompany's own shares held by the company in one or more tranches. Theshare issue can be carried out as a share issue against payment orwithout consideration on terms to be determined by the Board ofDirectors and in relation to a share issue against payment at a priceto be determined by the Board of Directors. A maximum of 11 600 000new shares can be issued. A maximum of 5 800 000 own shares held bythe company can be conveyed. The authorisation is in force for threeyears from the decision of the AGM.The decision made by the AGM was published in its entirety in aCompany Announcement on 10 March 2008.During the period under review, the Board has resolved on a directedshare issue by conveying without consideration a total of 216 727 ofthe company's own shares to persons included in the company'sperformance share plan for 2008 in accordance with the terms andconditions of the plan. The Board of Directors of Pöyry PLC furtherresolved on a directed share issue by conveying a total of 10 000 ofthe company's own shares held by the company to persons included inthe company's incentive plan. The directed share issues do not affectthe company's share capital or the total number of shares of thecompany. After these directed share issues, the maximum number ofshares that may be conveyed is 5 573 273 shares.Authorisation to acquire the company's own sharesThe AGM on 10 March 2008 authorised the Board of Directors to decideon acquiring a maximum of 5 800 000 of the company's own shares. On10 March 2008, the Board of Directors resolved to exercise theauthorisation for the implementation of the Performance share plan2008-2010 described above. On the basis of this authorisation,148 529 of the company's own shares were acquired in 2008. On 3February 2009, the Board of Directors resolved to commence acquiringthe company's own shares based on the above-mentioned authorisation.The shares may be acquired to develop the company's capitalstructure, to be used as payment in corporate acquisitions or whenthe company acquires assets related to its business and as part ofthe company's incentive programmes in a manner and to the extentdecided by the Board of Directors, and to be transferred for otherpurposes, or to be cancelled. Based on the resolution by the Board ofDirectors, 139 000 of the company's own shares were acquired between5 February and 4 March 2009.The AGM on 10 March 2009 authorised the Board of Directors to decideon acquiring the company's own shares with distributable funds on theterms given below for the purposes mentioned in the previousparagraph with the following terms. A maximum of 5 800 000 shares canbe acquired. The company's own shares can be acquired in accordancewith the decision of the Board of Directors either through publictrading or by public offer at their market price at the time ofpurchase. The acquisition of shares reduces the company'sdistributable shareholders' equity. The authorisation is in force for18 months from the decision of the AGM.The decision made by the AGM was published in its entirety in aCompany Announcement on 10 March 2009.On 10 March 2009, the Board of Directors decided to exercise theauthorisation and to commence the acquisition of the company's ownshares mentioned in the first paragraph under this headline. By theend of September 2009, 64 818 of the company's own shares have beenacquired based on this authorisation. The average price of the sharesacquired in 2009 was EUR 8.88. Furthermore, Pöyry PLC has acquiredfrom its subsidiary 8914 Pöyry PLC shares.Of the above mentioned directed share issue of 216 727 own sharesrelated to the earnings period 2008 of the performance share plan2008-2010, 215 641 shares have been transferred to the recipients.The number of shares transferred to the recipients as at 22 October2009 is 211 661 taking into account the returns of shares.Own shares held by the companyThe total number of own shares held by the company on 22 October 2009was 377 157, representing 0.6 per cent of all shares and 0.6 per centof all votes.Invested free equity reserveThe AGM on 10 March 2009 resolved to lower the legal reserve and theshare premium reserve by transferring the entire capital of thereserves in the aggregate amount of EUR 50 420 234.49 into thereserve for invested unrestricted equity. The transfer is completed.DividendThe Annual General Meeting decided that a dividend of EUR 0.65 bedistributed per outstanding share for 2008 (EUR 0.65 for 2007),totalling EUR 38.0 million. The dividend was paid on 20 March 2009.Share trading and priceThe company's shares are listed on NASDAQ OMX in Helsinki. Theaverage trading price during the period under review was EUR 9.46,with a high of EUR 13.17 and a low of EUR 7.55. A total of 15.8million of the company's shares were traded, equalling 26.8 per centof the total number of shares and corresponding to a turnover ofEUR 148.8 million.ProspectsEnergyThe Energy business group's market position is stable, although inthe short term the weakened demand and tightened competition make itchallenging to maintain the business group's profitability. Theglobal recession has led to clients' postponing investment decisions.This trend is not expected to significantly change in the short tomedium term, although prospects for energy projects in several areasespecially in emerging markets remain good. Adaptation measuresdesigned to safeguard profitability in the Energy business group willcontinue. The Energy business group's operating profit is estimatedto decrease significantly in 2009 including non-recurring expenses.Forest IndustryInvestment activity is not expected to recover in the short to mediumterm. Preliminary study work for new investment projects continues incertain areas, notably in Russia and Brazil. Coupled with Pöyry'sstrong market position, the long term prospects remain positive.Demand for local services as well as management consulting in theforest industry sector has decreased. In response to the marketsituation, the business group will pursue further sales andefficiency improvement measures. The business group's organisationand operating model is being changed to better serve the currentdemand. The Forest Industry business group's operating profit in 2009is estimated to be clearly negative, including non-recurring items.TransportationContinued urbanisation, mobility and the need for transportationsolutions coupled with large stimulus packages announced byGovernments around the world, continue to have a positive impact onfuture transportation investments. The impact of this on thetransportation business group, particularly in Western Europe andLatin America remains positive. It is further expected that asstability returns to markets around the world, the volume of projectsthat are carried out on concession or public private partnership(PPP) basis will increase.The business group's order stock has clearly increased and theoutlook remains positive. The Transportation business group'soperating profit is expected to improve in 2009.Water & EnvironmentThe global market conditions for the Water & Environment businessgroup continue to be stable. The project pipeline remains healthy anddemand for services in the water sector is unchanged. There are signsof an increase in demand for environmental services for industrialclients. Adaptation to climate change, e.g. flood protection, willcontinue to be an important driver for the Business Group in thefuture. The Water & Environment business group's operations areexpected to remain stable and its operating profit is estimated toimprove in 2009.Construction ServicesContinued low investment activity in the short term particularly incommercial, and also in the industrial sector, is expected.Relatively stable demand is anticipated to continue as far as energyand infrastructure projects and consulting services are concerned.The business group maintains a strong market position in these areas,but competition is expected to reduce short term margins. Capacityadaptation measures and cost-saving programmes launched by thebusiness group will continue to ensure profitability. ConstructionServices business group's operating profit is estimated to declineclearly in 2009.GroupThe economic downturn is having a clear impact on investment demandworldwide during 2009. In the Pöyry Group, the impacts have mostclearly been felt in the Forest Industry business group's operationsand profitability, though the business group's market positionremains strong. Pöyry continues its group-wide efficiency improvementmeasures and to adapt the capacity to prevailing market conditions.The aim of these measures is to concentrate know-how, improve theefficiency of operations and to cut costs. The cost saving target forfixed expenses is about EUR 30 million annually compared with the2008 cost base. The target excludes one-off restructuring expenses.The Group is on tract to deliver these savings with full impact in2010.Corporate acquisitions are a central part of Pöyry's growth strategy.Acquisitions will be made in cases where the target company offersstrategic advantages and supports Pöyry's objectives.Pöyry's net sales for 2009 are estimated to decrease and profitbefore taxes is estimated to decrease significantly compared with2008.Vantaa, Finland, 22 October 2009PÿYRY PLCBoard of DirectorsPÿYRY PLCHeikki MalinenPresident and CEOTeuvo SalminenDeputy to President and CEOAdditional information:Heikki Malinen, President and CEO, Pöyry PLCtel. +358 10 33 21307Esa Ikäheimonen, CFO, Pöyry PLCtel. +358 10 33 21586www.poyry.comDISTRIBUTION:NASDAQ OMX HelsinkiMajor mediaPÿYRY GROUPStatement of comprehensive income 7-9/ 7-9/ 1-9/ 1-9/ 1-12/EUR million 2009 2008 2009 2008 2008NET SALES 150.2 193.9 512.0 608.1 821.7Other operating income 0.2 0.2 0.5 0.5 6.6Share of associated companies'results 0.2 0.9 0.6 2.2 2.2Materials and supplies -2.0 -3.7 -4.8 -11.6 -15.3External charges, subconsulting -20.4 -22.3 -63.8 -72.2 -101.0Personnel expenses -88.3 -100.1 -308.2 -320.2 -433.8Depreciation -2.0 -2.2 -6.2 -6.4 -9.0Other operating expenses -36.8 -44.8 -119.2 -126.5 -170.8OPERATING PROFIT 1.1 21.9 10.9 73.9 100.6Proportion of net sales, % 0.7 11.3 2.1 12.2 12.2Financial income 1.3 1.7 4.2 4.0 6.3Financial expenses -1.4 -0.7 -4.3 -1.7 -3.5Exchange rate differences -0.2 0.3 0.4 0.1 -0.1Value decrease on non-currentinvestment 0.0 0.0 0.0 0.0 -0.1PROFIT BEFORE TAXES 0.8 23.2 11.2 76.3 103.2Proportion of net sales, % 0.5 12.0 2.2 12.5 12.6Income taxes -0.8 -7.5 -4.6 -24.0 -30.6NET PROFIT FOR THE PERIOD 0.0 15.7 6.6 52.3 72.6OTHER COMPREHENSIVE INCOMETranslation differences 0.0 0.6 2.0 -2.1 -8.5TOTAL COMPREHENSIVE INCOME FOR THEPERIOD 0.0 16.3 8.6 50.2 64.1Net profit attributable to:Equity holders of the parentcompany -0.4 15.4 5.5 51.0 70.8Minority interest 0.4 0.3 1.1 1.3 1.8Total comprehensive incomeattributableto:Equity holders of the parentcompany -0.4 16.0 7.5 48.9 62.3Minority interest 0.4 0.3 1.1 1.3 1.8Earnings per share, EUR -0.01 0.26 0.09 0.87 1.21Corrected with dilution effect -0.01 0.25 0.09 0.85 1.19PÿYRY GROUPStatement of financial position 30 September 30 September 31 DecemberEUR million 2009 2008 2008ASSETSNON-CURRENT ASSETSGoodwill 100.4 95.6 95.9Intangible assets 5.3 6.4 6.2Tangible assets 17.3 18.6 18.8Shares in associatedcompanies 5.6 7.0 5.8Other shares 1.9 1.7 1.7Loans receivable 1.0 0.6 0.1Deferred tax receivables 10.2 6.0 6.2Pension receivables 0.2 0.4 0.3Other 7.2 5.5 5.0 149.1 141.8 140.0CURRENT ASSETSWork in progress 86.5 81.6 69.3Accounts receivable 126.7 138.4 143.5Loans receivable 0.2 0.2 0.8Other receivables 13.6 18.6 10.3Prepaid expenses and accruedincome 13.8 12.7 12.7Financial assets at fair valuetroughprofit and loss 64.5Cash in hand and at banks 64.4 88.1 203.7 369.7 339.6 440.3TOTAL 518.8 481.4 580.3EQUITY AND LIABILITIESEQUITYEquity attributable to theequityholders of the parent companyShare capital 14.6 14.6 14.6Share premium reserve 0.0 32.4 32.4Legal reserve 2.8 20.2 20.5Invested free equity reserve 56.3 5.4 5.8Translation difference -20.5 -16.0 -22.4Retained earnings 118.8 132.5 152.5 172.0 189.1 203.4Minority interest 7.6 7.4 7.7 179.6 196.5 211.1LIABILITIESNon-current liabilitiesInterest bearing non-currentliabilities 111.1 21.2 100.8Pension obligations 7.9 6.9 6.7Deferred tax liability 4.5 5.8 4.7Other non-current liabilities 2.5 7.9 5.0 126.0 41.8 117.2Current liabilitiesAmortisations of interestbearingnon-current liabilities 19.3 1.7 20.5Interest bearing currentliabilities 2.1 8.6 1.2Provisions 8.7 4.1 5.8Project advances 59.2 71.1 73.6Accounts payable 16.6 22.7 21.8Other current liabilities 29.3 37.0 43.0Current tax payable 5.9 11.3 3.6Accrued expenses and deferredincome 72.1 86.6 82.5 213.2 243.1 252.0TOTAL 518.8 481.4 580.3PÿYRY GROUPStatement of cash flows 7-9/ 7-9/ 1-9/ 1-9/ 1-12/EUR million 2009 2008 2009 2008 2008FROM OPERATING ACTIVITIES Net profit for the period 0.0 15.7 6.6 52.3 72.6 Depreciation and value decrease 2.0 2.2 6.2 6.4 9.1 Gain on sale of fixed assets 0.0 0.0 0.0 0.0 -6.3 Share of associated companies' results -0.2 -0.9 -0.6 -2.2 -1.6 Financial income and expenses 0.3 -1.3 -0.3 -2.4 -2.5 Income taxes 0.8 7.5 4.6 24.0 30.6 Change in work in progress -6.7 -3.5 -17.2 -17.1 -4.8 Change in accounts and other receivables 6.5 2.0 10.0 -2.0 1.9 Change in advances received 0.0 -9.6 -14.4 -26.2 -23.7 Change in payables and other liabilities -14.5 2.2 -15.8 14.1 8.6 Received financial income 0.4 1.7 3.2 4.0 6.2 Paid financial expenses -0.3 -0.6 -3.0 -1.6 -3.0 Paid income taxes -4.9 -10.1 -16.0 -24.7 -30.5Total from operating activities -16.6 5.3 -36.7 24.6 56.6CAPITAL EXPENDITURE Investments in shares in subsidiaries deducted with cash acquired 0.8 -0.4 -10.2 -5.3 -8.7 Investments in fixed assets -0.9 -1.9 -3.8 -7.8 -10.7 Sales of shares in associated companies 0.0 0.0 0.0 0.0 6.9 Sales of other shares 0.0 0.0 0.0 0.7 0.4 Sales of fixed assets 0.0 0.5 0.4 1.1 1.2Capital expenditure total, net -0.1 -1.8 -13.6 -11.3 -10.9Net cash before financing -16.7 3.5 -50.3 13.3 45.7FINANCING New loans 20.0 0.0 20.0 20.5 118,2 Repayments of loans -0.5 -0.5 -11.1 -1.8 -2.6 Change in current financing 1.6 -4.3 1.2 3.9 -3.7 Change in non-current investments 0.0 0.0 0.0 0.0 0.0 Dividends -0.7 -0.6 -38.7 -39.1 -39.1 Acquisition of own shares -0.1 -1.0 -1.9 -5.9 -5.9 Share subscription 0.0 0.4 0.1 0.8 1.2Net cash from financing 20.3 -6.0 -30.4 -21.6 68.1Change in cash and cash equivalents 3.6 -2.5 -80.7 -8.3 113.8Cash and cash equivalents at thebeginning of period 123.6 92.4 203.7 98.7 98.7Change in the fair value of financialassets 0.6 0.6Impact of translation differences inexchange rates 1.1 -1.8 5.3 -2.3 -8.8Cash and cash equivalents at the end ofperiod 128.9 88.1 128.9 88.1 203.7Financial assets at fair value troughprofit and loss 64.5 64.5Cash in hand and at banks 64.4 88.1 64.4 88.1 203.7Cash and cash equivalents 128.9 88.1 128.9 88.1 203.7PÿYRY GROUPStatement of changes in equityEUR million Inves- Share ted pre- free Trans- Re- Minor- Share mium Legal equity lation tained ity cap- re- re- re- differ- earn- inter- Total ital serve serve serve ences ings Total est equityEquity1 July 2008 14.6 32.4 20.3 5.0 -16.6 117.4 173.1 7.5 180.6 Shares sub- scribed with stock options 0.4 0.4 0.4 Payment of dividend 0.0 -0.4 -0.4 Acquisition of own shares -0.8 -0.8 -0.8 Transfer. retained earnings -0.1 0.1 0.0 0.0 Expenses from share-based incentive programmes 0.5 0.5 0.5 Minority change -0.1 -0.1 -0.1 Comprehensive income for the period 0.6 15.4 16.0 0.3 16.3Changes forthe period 0.0 0.0 -0.1 0.4 0.6 15.1 16.0 -0.1 15.9Equity30 Sept. 2008 14.6 32.4 20.2 5.4 -16.0 132.5 189.1 7.4 196.5Equity1 Jan. 2008 14.6 32.4 19.5 4.6 -13.9 125.4 182.6 6.9 189.5 Shares sub- scribed with stock options 0.8 0.8 0.8 Payment of dividend -38.0 -38.0 -0.8 -38.8 Acquisition of own shares -5.9 -5.9 -5.9 Transfer. retained earnings 0.7 -0.7 0.0 0.0 Expenses from share-based incentive programmes 0.8 0.8 0.8 Minority change -0.1 -0.1 -0.1 Comprehensive income for the period -2.1 51.0 48.9 1.3 50.2Other changes 0.0 0.0 0.7 0.8 -2.1 7.1 6.5 0.5 7.0Equity30 Sept. 2008 14.6 32.4 20.2 5.4 -16.0 132.5 189.1 7.4 196.5Equity1 Jan. 2008 14.6 32.4 19.5 4.6 -13.9 125.4 182.6 6.9 189.5 Shares sub- scribed with stock options 1.2 1.2 1.2 Payment of dividend -38.0 -38.0 -1.0 -39-0 Acquisition of own shares -5.9 -5.9 -5.9 Transfer. retained earnings 1.0 -1.0 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 -8.5 70.8 62.3 1.8 64.1Changes forthe period 0.0 0.0 1.0 1.2 -8.5 27.0 20.7 0.9 21.6Equity31 Dec. 2008 14.6 32.4 20.5 5.8 -22.4 152.5 203.4 7.7 211.1Equity1 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 Transfer -32.4 -18.0 50.4 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 0.0Changes forthe period 0.0 -32.4 -18.0 50.5 0.0 0.0 0.1 -0.8 -0.7Equity30 Sept. 2009 14.6 0.0 2.8 56.3 -20.5 118.8 172.0 7.6 179.6Equity 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 -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 8.6Changes forthe period 0.0 -32.4 -17.7 50.5 2.0 -33.6 -31.2 -0.1 -31.3Equity30 Sept. 2009 14.6 0.0 2.8 56.3 -20.5 118.8 172.0 7.6 179.6PÿYRY GROUP 31Contingent liabilities 30 September 30 September DecemberEUR million 2009 2008 2008For own debt 0.0 0.0 0.0Other obligations Pledged assets 1.8 0.1 0.1 Other obligations 50.3 48.6 45.2For others Pledged assets 0.2 0.1 0.1 Other obligations 0.1 0.1 0.1Rent and lease obligations 110.9 112.2 118.2Derivative instruments Foreign exchange forward contracts, nominal values 33.9 38.2 29.5 Foreign exchange forward contracts, 1.1 0.2 1.1 fair values -0.2 -1.2 -1.2 Currency options, nominal values Purchased 0.3 5.6 Written 0.0 4.5 Currency options, fair values Purchased 0.0 0.2 Written 0.0 -0.2 Interest rate swaps, nominal values 10.6 11.7 Interest rate swaps, fair values -0.7 0.1 -0.7Related party transactionsThe transactions with the associated companies aredetermined on an arm's length basis. Sales to associated companies 0.0 0.3 0.3 Loans receivable from associated companies 0.1 0.0 0.1 Accounts receivable from associated companies 0.0 0.1 0.0Shareholding and option rights of related parties The members of the Board of Directors, the President and CEO, the Deputy to the President and CEO and the members of the Group Executive Committee owned on 30 September 2009 a total of 167 676 shares and 108 727 stock options (on 31 December 2008 a total of 167 437 shares, and 150 679 stock options 2004). With the stock options the shareholding can be increased by 434 908 shares equalling 0.7 per cent of the total number of shares and votes. The stock option programme is described in the Financial Statements 2008.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. During the period under review 90 000 grants have been awarded to the President and CEO, to the Deputy to the President and CEO and to the members of the Group Executive Committee, corresponding to the value of not more than 90 000 shares. The Performance share plan is described in the verbal part of the Interim report.PÿYRY GROUP 7-9/ 7-9/ 1-9/ 1-9/ 1-12/Key figures 2009 2008 2009 2008 2008Earnings / share, EUR -0.01 0.26 0.09 0.87 1.21 Corrected with dilution effect -0.01 0.25 0.09 0.85 1.19Equity attributable to equity holdersof the parent company/share, EUR 2.92 3.24 3.45Return on investment, % p.a. 6.8 49.6 45.4Return on equity, % p.a. 4.6 38.7 38.7Equity ratio, % 39.1 47.9 41.7Equity / Assets ratio, % 34.6 40.8 36.4Net debt / Equity ratio (gearing), % 2.0 -28.8 -38.5Net debt, EUR million 3.6 -56.5 -81.2Consulting and engineering, EUR million 510.8 592.5 538.6EPC, EUR million 3.1 2.0 0.5Order stock total, EUR million 513.9 594.5 539.1Capital expenditure, operating, EURmillion 0.9 1.9 3.8 7.8 10.7Capital expenditure in shares, EURmillion 0.0 0.0 4.2 5.3 8.9Personnel in Group companies on average 7208 7648 7702Personnel in Group companies at the endof the period 6682 7886 7924Personnel in associated companies atthe end of the period 142 326 142Change in intangible assetsEUR millionBook value at beginning of period 5.7 6.6 6.2 6.6 6.6Acquired companies 0.0 0.0 0.0 0.0 0.7Capital expenditure 0.0 0.4 0.7 1.8 1.4Decreases 0.0 0.0 0.0 0.0 0.0Depreciation and expenses -0.5 -0.6 -1.7 -1.8 -2.5Translation difference 0.1 0.0 0.1 -0.2 0.0Book value at end of period 5.3 6.4 5.3 6.4 6.2Change in tangible assetsBook value at beginning of period 17.8 19.4 18.8 17.8 17.8Acquired companies 0.0 0.0 0.0 0.7 0.7Capital expenditure 0.8 1.5 3.1 6.0 9.3Decreases 0.0 -0.5 -0.4 -1.1 -2.2Depreciation -1.5 -1.6 -4.5 -4.6 -6.6Translation difference 0.2 -0.2 0.3 -0.2 -0.2Book value at end of period 17.3 18.6 17.3 18.6 18.8PÿYRY GROUPSegment information 1-9/2009 1-9/2008 1-12/2008EUR millionNET SALESEnergy 161.1 177.0 241.3Forest Industry 137.7 222.0 294.5Transportation 88.3 76.5 105.5Water & Environment 63.6 62.2 87.6Construction Services 59.7 68.9 92.8Unallocated 1.6 1.5 0.0Total 512.0 608.1 821.7OPERATING PROFIT AND NET PROFIT FOR THEPERIODEnergy 7.2 20.2 32.0Forest Industry -9.0 41.3 50.8Transportation 7.1 5.9 9.2Water & Environment 3.4 2.4 4.2Construction Services 4.7 8.0 9.9Unallocated -2.5 -3.9 -5.5Operating profit total 10.9 73.9 100.6Financial income and expenses 0,3 2.4 2.6Profit before taxes 11.2 76.3 103.2Income taxes -4.6 -24.0 -30.6Net profit for the period 6.6 52.3 72.6Profit attributable to:Equity holders of the parent company 5.5 51.0 70.8Minority interest 1.1 1.3 1.8OPERATING PROFIT %Energy 4.4 11.4 13.2Forest Industry -6.6 18.6 17.2Transportation 8.1 7.7 8.7Water & Environment 5.3 3.9 4.8Construction Services 7.9 11.6 10.7Total 2.1 12.2 12.2ORDER STOCKEnergy 186.3 216.1 196.4Forest Industry 54.4 116.3 86.3Transportation 163.1 130.3 130.9Water & Environment 69.0 78.3 76.8Construction Services 41.0 53.1 48.3Unallocated 0.1 0.4 0.4Total 513.9 594.5 539.1Consulting and engineering 510.8 592.5 538.6EPC 3.1 2.0 0.5Total 513.9 594.5 539.1PÿYRY GROUPSegment informationEUR million 1-9/2009 1-9/2008 1-12/2008PERSONNEL, END OF THE PERIODEnergy 1670 1888 1870Forest Industry 1942 2886 2917Transportation 1196 1062 1073Water & Environment 909 973 976Construction Services 848 965 971Unallocated 117 112 117Total 6682 7886 7924ASSETS, END OF THE PERIODEnergy 193.1 200.6 209.1Forest Industry 158.4 225.3 241.9Transportation 107.5 89.7 100.1Water & Environment 71.4 63.1 84.8Construction Services 65.8 56.9 75.3Unallocated -77.4 -154.1 -130.9Total 518.8 481.5 580.3NET SALES BY AREAThe Nordic countries 144.1 175.4 234.3Europe 249.2 265.1 363.1Asia 40.0 53.1 72.6North America 15.2 21.7 27.7South America 40.5 69.0 89.5Other 23.0 23.8 34.5Total 512.0 608.1 821.7PÿYRY GROUPSegment informationEUR million 10-12/07 1-3/08 4-6/08 7-9/08NET SALESEnergy 62.7 58.1 62.1 56.8Forest Industry 74.1 70.8 81.9 69.3Transportation 24.6 23.7 26.5 26.3Water & Environment 21.6 20.3 21.6 20.3Construction Services 22.0 22.9 25.4 20.6Unallocated 0.5 0.4 0.5 0.6Total 205.5 196.2 218.0 193.9OPERATING PROFIT AND NET PROFIT FOR THEPERIODEnergy 5.4 5.6 8.3 6.3Forest Industry 11.7 11.7 16.9 12.7Transportation 2.0 2.1 1.4 2.4Water & Environment 1.6 0.7 1.4 0.3Construction Services 2.6 2.7 3.4 1.9Unallocated -1.1 -0.8 -1.4 -1.7Operating profit total 22.2 22.0 30.0 21.9Financial income and expenses 1,1 0.6 0.5 1.3Profit before taxes 23.3 22.6 30.5 23.2Income taxes -6.7 -7.1 -9.4 -7.5Net profit for the period 16.6 15.5 21.1 15.7Profit attributable to:Equity holders of the parent company 15.9 15.1 20.5 15.4Minority interest 0.7 0.4 0.6 0.3OPERATING PROFIT %Energy 8.6 9.6 13.4 11.1Forest Industry 15.9 16.5 20.6 18.3Transportation 8.1 8.9 5.3 9.1Water & Environment 7.2 3.4 6.5 1.5Construction Services 11.9 11.8 13.4 9.2Total 10.8 11.2 13.8 11.3ORDER STOCKEnergy 212.7 205.8 195.8 216.1Forest Industry 119.6 133.0 123.3 116.3Transportation 107.0 113.1 114.5 130.3Water & Environment 72.4 74.7 75.0 78.3Construction Services 51.1 47.3 46.7 53.1Unallocated 0.0 0.4 0.4 0.4Total 562.8 574.3 555.7 594.5Consulting and engineering 551.4 568.5 551.5 592.5EPC 11.4 5.8 4.2 2.0Total 562.8 574.3 555.7 594.5PÿYRY GROUPSegment informationEUR million 10-12/08 1-3/09 4-6/09 7-9/09NET SALESEnergy 64.3 59.5 52.9 48.7Forest Industry 72.5 53.8 48.7 35.2Transportation 29.0 30.8 29.0 28.5Water & Environment 25.4 21.0 22.0 20.6Construction Services 23.9 22.2 20.7 16.8Unallocated -1.5 0.5 0.7 0.4Total 213.6 187.8 174.0 150.2OPERATING PROFIT AND NET PROFIT FOR THEPERIODEnergy 11.8 4.1 2.5 0.6Forest Industry 9.5 -2.8 -2.2 -4.0Transportation 3.3 2.5 2.0 2.6Water & Environment 1.8 0.8 1.5 1.1Construction Services 1.9 1.7 1.6 1.4Unallocated -1.6 -1.1 -0.8 -0.6Operating profit total 26.7 5.2 4.6 1.1Financial income and expenses 0.2 1.1 -0.5 -0.3Profit before taxes 26.9 6.3 4.1 0.8Income taxes -6.6 -2.0 -1.8 -0.8Net profit for the period 20.3 4.3 2.3 0.0Profit attributable to:Equity holders of the parent company 19.8 3.8 2.1 -0.4Minority interest 0.5 0.5 0.2 0.4OPERATING PROFIT %Energy 18.4 6.9 4.7 1.2Forest Industry 13.1 -5.2 -4.5 -11.4Transportation 11.3 8.0 6.9 9.1Water & Environment 7.3 3.8 6.8 5.3Construction Services 8.1 7.5 7.7 8.3Total 12.5 2.8 2.6 0.7ORDER STOCKEnergy 196.4 195.2 190.9 186.3Forest Industry 86.3 71.7 63.4 54.4Transportation 130.9 151.8 157.0 163.1Water & Environment 76.8 78.8 75.5 69.0Construction Services 48.3 48.3 46.1 41.0Unallocated 0.4 0.6 1.2 0.1Total 539.1 546.4 534.1 513.9Consulting and engineering 538.6 539.8 530.7 510.8EPC 0.5 6.6 3.4 3.1Total 539.1 546.4 534.1 513.9PÿYRY GROUPCalculation of key figuresReturn on investment, ROI % 100 profit before taxes + interest and other financial expenses x -------------------------------------------------------------- balance sheet total - non-interest bearing liabilities (quarterly average)Return on equity, ROE % 100 net profit x ------------------------------- equity (quarterly average)Equity ratio % 100 equity x ------------------------------------------------ balance sheet total - advance payments receivedEquity/assets ratio % 100 equity x -------------------------- balance sheet totalNet debt/equity ratio, gearing % 100 interest-bearing liabilities - cash and cash equivalents x --------------------------------------------------------- equityEarnings/share, EPS net profit attributable to the equity holders of the parent company -------------------------------------------------------------------- issue-adjusted average number of shares for the fiscal yearEquity 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 yearPÿYRY GROUPAcquisitions during 2009 Acquisition Acquired Name and business date interest % 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. The company's annual net sales are about EUR 1.3 million. The company has been consolidated into Pöyry as of 1 May 2009.Acquisitions during 2008 Acquisition Acquired Name and business date interest % Arket Oy 7 May 2008 100 The company specialises in architectural design services for healthcare, office, retail and industrial buildings. The company is based in Espoo, Finland employing nine persons. The company has been merged with Pöyry Architects Oy. Geopale Oy 12 May 2008 100 The company specialises in bedrock core drillings. The company is based in Jyväskylä, Finland employing 14 persons. The company has been merged with Pöyry Environment Oy. Consilier Construct S.R.L. 27 May 2008 100 The company focuses on the transportation market in particular on the road and rail sector. The company is based in Bucharest in Romania and has a staff of 220. 1 October ETT Proyectos S.L. 2008 100 The company provides engineering and consultancy services in the rail sector, including both conventional rail systems as well as high-speed rail systems. The company is based in Madrid, Spain and has a staff of 45. 3 December Kündig & Partner AG 2008 100 The company is specialised in HVAC building services, and brings in a focus on complex and sophisticated sanitary designs of hospitals and laboratory facilities. The company is based in Bern, Switzerland and has a staff of 10. Shanghai Kang Dao Construction Company Ltd 2008 100 1 March 2009 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. The company has not been consolidated into Pöyry Group in 2008. The acquisition was completed in March 2009 and included in Pöyry Group from the beginning of March 2009.PÿYRY GROUP Aggregate figures for the above acquisitions EUR million 2009 2008 Purchase price Fixed price, paid 4.2 8.8 Fixed price, unpaid 0.0 Earnout estimate 0.2 Order intake estimate Fees 0.0 0.1 Total 4.2 9.1 Price allocation Equity 0.2 4.7 Fair value adjustments: Client relationship 0.0 0.0 Order stock 0.0 0.0 Other 0.0 0.0 Total 0.2 4.7 Goodwill (remaining) 4.0 4.4 Market leadership, experienced management and staff, and earnings expectations are factors contributing to the amount booked as goodwill. Impact on the Pöyry Group's income statement Operating profit from acquisition date to end of September 2009 / December 2008 0.1 1.8 Sales volume on a 12-month calendar year basis 3.0 17.4 Operating profit on 12-month calendar year basis 0.7 2.4 Impact on the Pöyry Group's number of personnel 37 328 Impact on the Pöyry Group's assets and liabilities EUR million 2009 2008 Book Book values values at Fair Adjus- at Fair Adjus- acqui- value ted acqui- value ted sition adjust- IFRS sition adjust- IFRS date ments values date ments values Intangible assets 0.0 0.0 0.1 0.1 Tangible assets 0.0 0.0 0.8 0.1 0.9 Work in progress 0.0 0.0 0.9 0.6 1.5 Accounts receivable 0.2 0.2 4.6 4.6 Other receivables 0.0 0.0 1.6 -0.2 1.4 Cash and cash equivalents 0.2 0.2 2.5 2.5 Assets total 0.4 0.0 0.4 10.5 0.5 11.0 Interest bearing liabilities 0.0 0.0 0.5 0.5 Project advances 0.0 0.0 0.0 0.0 Accounts payable 0.0 0.0 1.7 1.7 Other current liabilities 0.2 0.2 3.4 0.7 4.1 Liabilities total 0.2 0.0 0.2 5.6 0.7 6.3 Net identifiable assets and liabilities 0.2 0.0 0.2 4.9 -0.2 4.7 Total cost of business combinations 4.2 9.1 Goodwill 4.0 4.4 Consideration paid, satisfied in cash 4.2 8.8 Cash acquired 0.2 2.5 Net cash outflow 4.0 6.3 Based on the purchase agreements the companies acquired during the period under review are consolidated 100% into the Pöyry Group as of the end of the month when acquired. The figures are preliminary.http://hugin.info/120101/R/1349673/325342.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 23.10.2009 - 07:32 Uhr
Sprache: Deutsch
News-ID 7317
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"Pöyry's Interim Report 1 January - 30 September 2009"
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