International Financial Reporting Standards

The Jaakko Pöyry Group will report its accounts according to the International Financial Reporting Standards (IFRS) from the beginning of 2005. The main adjustments to the statement of income and balance sheet relate to calculation and recording of pension arrangements, goodwill and deferred tax receivables. As the Group's accounting and reporting principles already are largely in line with the IFRS standards, the adoption of IFRS standards does not have any other significant effects on the Group's profit, balance sheet and equity.

Impact of IFRS changes on the statement of income for 2004

The net profit for 2004 according to FAS (Finnish Accounting Standards) was EUR 18.0 million. The impact of IFRS changes on the profit was EUR 1.7 million, increasing the net profit according to IFRS to EUR 19.7 million. Earnings per share were EUR 1.30 (FAS) and EUR 1.42 (IFRS).

Impact of IFRS changes on the consolidated balance sheet on December 31, 2003 and December 31, 2004

According to FAS, the balance sheet total was EUR 270.9 million at the end of 2003. IFRS changes increased the total value by EUR 14.6 million to EUR 285.5. According to FAS, the balance sheet total was EUR 300.4 million at the end of 2004. IFRS changes increased the total value by EUR 12.2 million to EUR 312.6 million.

The calculations are based on the present standards and information available. The calculations are unaudited.

The main factors and their impact on the statement of income and on the balance sheet are the following:

Pension arrangements

The Group has defined benefit plans in Switzerland, Germany, France and Norway. Some of the voluntary pension arrangements in Finland are also defined benefit plans. The unfunded liability of defined benefit plans increases the Group's liabilities and decreases the equity. Correspondingly, if there are more funds than liabilities in a defined benefit plan, the overfunded amount increases the Group's assets and equity. The pension expenses for defined benefit plans are determined by actuarial calculations.

The unfunded disability part of the Finnish pension system has not been accounted for during the years 2003 and 2004 due to the change in legislation. The liability at the end of year 2003 was about 7 million euro.

Goodwill

The Global Network Company concept is a cornerstone of the Jaakko Pöyry Group's strategy. The Group's comprehensive office network is a unique and important key factor supporting the business, allowing the Group to offer its versatile expertise to locally as well as globally operating companies, combining the knowledge of its global network of experts with a strong knowledge of local conditions. The strategy, with all three business groups targeting the cooperation and integration level of a Global Network Company, supports the Group's policy for allocating goodwill according to IFRS 3.

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The three business groups of the Jaakko Pöyry Group (Forest Industry, Energy, Infrastructure & Environment) represent the independent cash generating unit levels where management monitors the return on investment and are therefore chosen as the goodwill allocation level.

The impairment testing is carried out annually during December primarily by discounted cash flow analysis but also crosschecked by multiple based market price comparisons.

The discounted cash flow analysis is based on the approved strategy where growth from acquisitions has been eliminated.

Other main assumptions used in the calculations:

- Beetas between 0.75 - 1.00

- Pre-tax WACC 8.9% - 10.1% p.a. (Post-tax 7.0% - 8.2%)

- Perpetuity growth rates 2.5% - 3.5% p.a.

The Group's scale for classifying impairment testing results is the following: a) is below, b) corresponds to, c) exceeds slightly, d) exceeds clearly, e) exceeds significantly.

The impairment testing result shows that the value in use of each of the business groups exceeds significantly the related book value.

An external independent expert has issued a "Fairness opinion" on the impairment tests.

Deferred tax receivables

The Group's deferred tax receivables are mainly related to tax losses in Group companies. Deferred tax receivables are only booked if it is expected that the tax losses can be utilised during the next three years. An exception is made in Germany, where the deferred tax receivables due to the business volume are expected to be utilised within six years.

Financial instruments

The implementation of IFRS financial instruments standards does not cause any significant adjustments either to the statement of income or to the balance sheet of the Group.

The results for the forward exchange transactions and currency options have been booked on the basis of realisation. Open forward contracts have been translated at the exchange rates prevailing at the balance sheet date, except for forward contracts related to order stock. After implementation of IFRS also order stock and related forward contracts are valued at the exchange rates prevailing at the balance sheet date.

The change to the accounting principles has a minor impact on the statement of income and balance sheet.

The interest rate swaps made by Jaakko Pöyry Group Oyj for EUR 11.2 million external loans do not have any significant impact on the income statement or balance sheet. The fair value of the interest rate swaps was EUR - 0.1 million at the end of 2004.

The value of the available-for-sale financial assets was EUR 6.1 million at the year of 2004.

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The IFRS figures do not include adjustments due to the financial instruments standards until January 1, 2005.

Recording of exchange gains and losses

IFRS has not changed the practice for recording the exchange rate gains and losses. Exchange gains and losses from realisation and from valuation are taken into account in the statement of income. The interest rate differential of the forward contracts is included in the exchange gains or losses. Exchange gains and losses related to business operations are included in net sales or operating expenses. Exchange gains and losses related to financing operations are included in financial income and expenses.

Leases

The group has both finance lease agreements and operating lease agreements.

Assets acquired by finance lease agreements, mainly IT and office equipment, are capitalised as assets in the balance sheet and are depreciated over their economic life according to IAS 17 (leases). The lease obligations are included in interest bearing liabilities.

Operating leases are mainly office facility agreements. Also lease agreements for cars and some office equipment are classified as operating leases. Lease payments for operating leases are treated as rent expenses during the rental period.

Share-based payments

Jaakko Pöyry Group Oyj has issued stock options during the years 1998 and 2004. The fair value of the option programmes has been estimated with the Black&Scholes model and the annual costs of the option programmes are booked as personnel expenses during the vesting period.

JAAKKO PÖYRY GROUP OYJ

Erkki Pehu-Lehtonen

President and CEO

Teuvo Salminen

Deputy to President and CEO

Additional information by:

Teuvo Salminen, Deputy to President and CEO, Jaakko Pöyry Group Oyj

Tel. +358 9 8947 2872, +358 400 420 285

www.poyry.com

DISTRIBUTION:

Helsinki Exchanges

Major media

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	JAAKKO PÖYRY GROUP


	EUR million
				FAS				IFRS
	STATEMENT OF INCOME			2004		Change		2004

	Net sales			473.9				473.9

	Other operating income			2.1				2.1
	Share of associated companies' results			0.5				0.5

	Materials and supplies			64.9				64.9
1)	Personnel expenses			263.7		2.7		266.4
2)	Depreciation of consolidation goodwill			4.9		-4.9		0.0
	Other depreciation and value decrease			9.1				9.1
	Other operating expenses			106.2				106.2

	Operating profit			27.7		2.2		29.9
		Proportion of net sales, %		5.8				6.3


	Financial income and expenses		+	1.0			+	1.0
		Proportion of net sales, %		0.2				0.2

	Profit before extraordinary items			28.7		2.2		30.9
		Proportion of net sales, %		6.1				6.5

	Extraordinary items			0.0				0.0

	Profit before taxes and minority interest			28.7		2.2		30.9
		Proportion of net sales, %		6.1				6.5

3)	Income taxes		-	9.5	-	0.5	-	10.0
	Minority interest		-	1.2			-	1.2

	Net profit for the period			18.0	+	1.7		19.7

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	EUR million
		FAS		IFRS
	BALANCE SHEET	31.12.2003	Change	31.12.2003

	Consolidation goodwill	34.3		34.3
	Intangible assets	4.7		4.7
4)	Tangible assets	16.2	1.6	17.8
5)	Non-current investments	9.4	-0.2	9.2
6)	Deferred tax receivables	0.3	5.4	5.7
	Work in progress	35.4		35.4
	Accounts receivable	90.1		90.1
7)	Other receivables	17.4	7.8	25.2
	Current investments, cash in hand and at banks	63.1		63.1

	Assets total	270.9	14.6	285.5


8)	Shareholders' equity	117.9	11.5	129.4
	Minority interest	4.2		4.2
9)	Interest bearing non-current liabilities	11.2	1.1	12.3
9)	Interest bearing current liabilities	2.2	0.5	2.7
	Project advances	37.5		37.5
	Accounts payable	10.6		10.6
10)	Other non-interest bearing liabilities	87.3	1.5	88.8

	Liabilities total	270.9	14.6	285.5

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	EUR million
		FAS		IFRS
	BALANCE SHEET	31.12.2004	Change	31.12.2004

	Consolidation goodwill	33.6		33.6
	Intangible assets	4.4		4.4
4)	Tangible assets	14.8	1.0	15.8
5)	Non-current investments	10.4	-0.2	10.2
6)	Deferred tax receivables	1.3	4.9	6.2
	Work in progress	46.6		46.6
	Accounts receivable	105.4		105.4
7)	Other receivables	21.7	6.5	28.2
	Current investments, cash in hand and at banks	62.2		62.2

	Assets total	300.4	12.2	312.6


8)	Shareholders' equity	117.5	9.1	126.6
	Minority interest	7.1		7.1
9)	Interest bearing non-current liabilities	8.6	0.7	9.3
9)	Interest bearing current liabilities	2.6	0.3	2.9
	Project advances	51.6		51.6
	Accounts payable	13.9		13.9
10)	Other non-interest bearing liabilities	99.1	2.1	101.2

	Liabilities total	300.4	12.2	312.6

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	EUR million

	CHANGES

	STATEMENT OF INCOME				2004

1)	Pension expenses from benefit plans			-	2.0
	Expenses from option programmes			-	0.7
2)	Depreciation of consolidation goodwill			+	4.9
3)	Change in deferred tax receivables			-	0.5

	Total			+	1.7

	BALANCE SHEET		Dec. 31, 2003	Dec. 31, 2004

4)	Finance lease assets		1.6		1.0
5)	Financial assets, value decrease	-	0.2	-	0.2
6)	Deferred tax receivables		5.4		4.9
7)	Assets from benefit plans		8.0		6.7
	Other	-	0.2	-	0.2

	Total		14.6		12.2

8)	Change in equity		11.5		9.1
9)	Finance lease liabilities		1.6		1.0
10)	Liabilities from benefit plans		1.5		2.1

	Total		14.6		12.2

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EUR million

SHAREHOLDERS' EQUITY			Dec. 31, 2003	Dec. 31, 2004

Shareholders' equity FAS			117.9			117.5
	Benefit plans, net assets		6.5			4.6
	Deferred tax receivables		5.4			4.9
	Financial assets, value decrease	-	0.2		-	0.2
	Other	-	0.2		-	0.2
IFRS changes total			11.5			9.1
Shareholders' equity IFRS			129.4			126.6


			FAS			IFRS
KEY FIGURES			2004			2004

Earnings/share, EUR			1.30			1.42
	Corrected with dilution effect		1.26			1.38

Shareholders' equity/share, EUR			8.43			9.09

Return on investment, %			21.6			21.4

Return on equity, %			15.6			15.6

Equity ratio, %			50.1			51.2

Net debt/equity ratio (gearing), %			-40.9			-37.4

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Business groups
	FAS
EUR million	1-3/04	4-6/04	7-9/04	10-12/04	2004

NET SALES

Forest Industry	47,1	48,4	40,7	50,1	186,3
Energy	33,0	35,7	35,5	42,3	146,5
Infrastructure & Environment	35,5	34,7	34,6	37,3	142,1
Other	-0,1	0,0	-0,4	-0,5	-1,0
	115,5	118,8	110,4	129,2	473,9

OPERATING PROFIT AND NET PROFIT FOR THE PERIOD

Forest Industry	3,5	4,4	4,2	5,4	17,5
Energy	2,1	1,5	1,7	2,7	8,0
Infrastructure & Environment	1,5	1,7	2,4	2,4	8,0
Other	-1,4	-1,6	-1,4	-1,4	-5,8
Operating profit total	5,7	6,0	6,9	9,1	27,7
Financial items	0,1	0,2	0,2	0,5	1,0
Profit before extraordinary items	5,8	6,2	7,1	9,6	28,7
Income taxes	-2,1	-2,4	-1,3	-3,7	-9,5
Minority interest	-0,1	-0,4	-0,1	-0,6	-1,2
Net profit for the period	3,6	3,4	5,7	5,3	18,0

BALANCE SHEET

Consolidation goodwill	33,1	32,2	31,5	33,6
Intangible assets	4,8	5,0	4,6	4,4
Tangible assets	16,1	16,8	16,5	14,8
Non-current investments	9,8	10,0	10,1	10,4
Deferred tax receivables	0,5	0,7	1,0	1,3
Work in progress	46,1	54,2	65,1	46,6
Accounts receivable	81,4	93,1	85,4	105,4
Other receivables	20,3	25,5	27,6	21,7
Current investments,
cash in hand and at banks	49,7	44,8	48,1	62,2
Assets total	261,8	282,3	289,9	300,4

Shareholders' equity	100,6	104,6	110,5	117,5
Minority interest	4,2	6,9	6,7	7,1
Interest bearing non-current liabilities	11,2	10,4	9,5	8,6
Interest bearing current liabilities	2,1	2,1	3,3	2,6
Project advances	38,3	41,2	46,7	51,6
Accounts payable	11,3	11,8	11,8	13,9
Other non-interest bearing liabilities	94,1	105,3	101,4	99,1

Liabilities total	261,8	282,3	289,9	300,4

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Business groups
	IFRS
EUR million	1-3/04	4-6/04	7-9/04	10-12/04	2004

NET SALES

Forest Industry	47,1	48,4	40,7	50,1	186,3
Energy	33,0	35,7	35,5	42,3	146,5
Infrastructure & Environment	35,5	34,7	34,6	37,3	142,1
Other	-0,1	0,0	-0,4	-0,5	-1,0
	115,5	118,8	110,4	129,2	473,9

OPERATING PROFIT AND NET PROFIT FOR THE PERIOD

Forest Industry	3,5	4,3	4,1	5,3	17,2
Energy	1,8	1,3	1,4	2,5	7,0
Infrastructure & Environment	1,3	1,5	2,1	2,1	7,0
Other	-0,1	-0,3	-0,2	-0,7	-1,3
Operating profit total	6,5	6,8	7,4	9,2	29,9
Financial items	0,1	0,2	0,2	0,5	1,0
Profit before extraordinary items	6,6	7,0	7,6	9,7	30,9
Income taxes	-2,2	-2,5	-1,4	-3,9	-10,0
Minority interest	-0,1	-0,4	-0,1	-0,6	-1,2
Net profit for the period	4,3	4,1	6,1	5,2	19,7

BALANCE SHEET

Consolidation goodwill	33,1	32,2	31,5	33,6
Intangible assets	4,8	5,0	4,6	4,4
Tangible assets	17,6	18,2	17,7	15,8
Non-current investments	9,6	9,8	9,9	10,2
Deferred tax receivables	5,8	5,9	6,1	6,2
Work in progress	46,1	54,2	65,1	46,6
Accounts receivable	81,4	93,1	85,4	105,4
Other receivables	27,8	32,7	34,4	28,2
Current investments,
cash in hand and at banks	49,7	44,8	48,1	62,2
Assets total	275,9	295,9	302,8	312,6

Shareholders' equity	111,6	115,0	120,3	126,6
Minority interest	4,2	6,9	6,7	7,1
Interest bearing non-current liabilities	12,2	11,4	10,4	9,3
Interest bearing current liabilities	2,6	2,5	3,6	2,9
Project advances	38,3	41,2	46,7	51,6
Accounts payable	11,3	11,8	11,8	13,9
Other non-interest bearing liabilities	95,7	107,1	103,3	101,2
Liabilities total	275,9	295,9	302,8	312,6