The Pöyry Group's net sales for the period under review were EUR
340.0 million (297.9 million in the same period in 2006). Profit
before taxes was EUR 33.3 (20.9) million.
The Group's consolidated balance sheet is healthy. The equity ratio
was 46.2 (46.6) per cent and the net debt/equity ratio (gearing)
-29.7 (-22.1) per cent.
Earnings per share were EUR 0.38 (0.24) and the return on investment
38.2 (26.9) per cent.
The order stock increased by EUR 71.3 million to EUR 578.9 million
during the review period. The number of personnel increased,
amounting to 6960 at the end of the review period (6389 at the end of
2006).
Consolidated net sales will increase during 2007. Profit before taxes
is expected to improve clearly in 2007.
The interim report has been prepared in accordance with the IAS 34
following the same accounting principles as in the annual financial
statements for 2006. In the Financial Statements for 2007 the Group
will also adopt the new standards "IFRS 7 Financial Instruments:
Disclosures" and "IAS 1 Presentation of Financial Statements -
Capital Disclosures".
The data in this interim report are unaudited.
Business groups
Energy
Net sales for the period under review were EUR 103.2 (88.4) million.
Operating profit was EUR 9.9 (6.5) million.
Demand for energy-related services has remained good especially in
Europe and the business group has further strengthened its global
market position. The corporate acquisitions in the consulting
business and in the oil and gas sector in 2006 have had a favourable
impact on earnings during the period under review.
The order stock is good, amounting to EUR 233.8 million at the end of
the review period (204.9 at the end of 2006). The most important new
projects were the bioethanol plant for San Carlos Bioenergy Inc. in
the Philippines (EUR 10 million), the Puttalam coal-fired power plant
project in Sri Lanka (EUR 7 million), the combined heat and power
plant project with Propower GmbH in Germany (EUR 6.2 million), the
OGK-3 coal-fired power plant in Russia (EUR 2 million), Fortum Power
and Heat Oy's combined heat and power plant project in Finland (EUR 5
million), the Rudbar-e-Lorestan hydropower project in Iran (EUR 7
million), the diesel oil storage EPC contract with Esergui s.a. in
Spain (EUR 9.5 million) and the Vung Ang coal-fired power plant in
Vietnam (EUR 11 million).
Forest Industry
Net sales for the period under review were EUR 132.0 (109.8) million.
Operating profit amounted to EUR 16.4 (9.0) million.
Most of the forest industry's new investments have been directed to
Latin America. Several biofuel projects, especially in North America,
have improved the business group's capacity utilisation and earnings.
New openings, among others in the chemical industry, have also
improved the earnings for the period under review. Demand for local
engineering services and operations improvement services has remained
stable, as has demand for consulting services.
The business group's order stock has increased, amounting to EUR
140.2 million (111.4 million at the end of 2006), and is on a good
level. The most important new projects received during the review
period were the implementation of the bleached hardwood kraft pulp
mill of VCP - MS Celulose Sul Mato-Grossense Ltda (the new name of
Chamflora - Três Lagoas Agroflorestal Ltda) in Mato Grosso do Sul,
Brazil (EUR 54 million), Stora Enso's paper machine rebuild at
Wisconsin Rapids in the United States, the rebuild of two paper
machines for Billerud AB in Sweden, Holmen Paper AB's TMP plant
upgrade at the Braviken mill in Sweden (EUR 2 million) and L&T Recoil
Oy's oil regeneration project in Finland (EUR 1.5 million).
Infrastructure & Environment
Net sales for the period under review were EUR 104.2 (99.0) million.
Operating profit was EUR 7.2 (6.1) million.
Demand in the infrastructure and environment markets has remained
stable. The business group has continued to strengthen its position
in local and international markets.
The order stock amounted to EUR 204.6 million (191.0 at the end of
2006), which is a good level. The most important new projects were
the contract with the German Railways (DB ProjektBau GmbH) for
improvement of the railway network of Berlin (EUR 3 million), waste
water management projects in Brno, Czech Republic and Paris, France
(totally EUR 2.5 million), the traffic control system project with
ASFINAG (Autobahnen- und Schnellstrassen- Finanzierungs-
Aktiengesellschaft) Verkehrstelematik GmbH in Linz, Austria (EUR 1.3
million), railway line projects in Algeria and Finland (totally EUR
3.5 million) and the contract with the Latvian real estate company
SIA Vertikala Pasaule for construction management and site inspection
services in Latvia (EUR 3 million).
Group structure
Energy
Pöyry has divested its French subsidiary Pöyry Energy (Lyon) SAS and
sold its 100 per cent ownership in the company. The reason for the
sale was that the company's profile and product portfolio were not in
line with the current strategy of the Energy business group. The
income from the sale was EUR 0.7 million.
Forest Industry
Pöyry expanded its business in Russia by acquiring in June 70 per
cent of the shares of ZAO Giprobum Engineering, based in St.
Petersburg, Russia. The company's net sales are about EUR 5 million
and it has a staff of 260. The transaction includes an option to
acquire the remaining 30 per cent of the shares during the first half
of 2009. The services of Giprobum Engineering include investment
studies, services related to permitting and agreements with
authorities, various sectors of plant engineering, and construction
management services. Giprobum Engineering has a wide clientele both
in pulp and paper and mechanical wood industries in Russia, Ukraine,
Belarus and several eastern European countries. Giprobum Engineering
is consolidated into the Pöyry Group as of the end of June.
Infrastructure & Environment
Pöyry strengthened its quantity and cost calculation know-how by
acquiring in May 100 per cent of the shares of Insinööritoimisto
Rakennuslaskenta NHL Oy, Finland. Rakennuslaskenta NHL had sales of
more than EUR 2 million in 2006. The company is consolidated into the
Pöyry Group as of the end of May.
In June Pöyry acquired 70 per cent of the shares of Evata Worldwide
Oy, a Finnish architectural design and real estate consulting firm.
Evata employs about 100 experts in its headquarters in Helsinki, and
in offices in Tallinn, Estonia, and Beijing, China. It also has a
representative office in St. Petersburg, Russia. Evata offers
architectural and interior design, workplace design, office property
consulting and services related to real estate development. The
company's annual
net sales are about EUR 10 million. The deal includes an option to
acquire the remaining 30 per cent of the company's shares in 2010, at
the earliest. After completion of the acquisition, Pöyry's real
estate expertise will cover all major sectors of the business:
project management, design, real estate consulting and architecture.
Evata is consolidated into the Pöyry Group as of the end of June.
Order stock
The Group's order stock is good. It increased by EUR 71.3 million
during the period under review, totalling EUR 578.9 million at the
end of June. At the end of 2006 the order stock was EUR 507.6
million.
Personnel
The number of personnel in the Group has increased, amounting to 6960
(6389 at the end of 2006).
Balance sheet structure and financial position
The Group's consolidated balance sheet is healthy. The equity ratio
at the end of the review period was 46.2 per cent (49.2 at the end of
2006). The Group's liquidity is good. The net debt/equity ratio
(gearing) was -29.7 per cent (-37.6 at the end of 2006).
Capital expenditure
The Group's capital expenditure for the period under review totalled
EUR 15.7 (16.5) million, of which EUR 3.8 (3.2) million was invested
mainly in IT hardware, software and systems and EUR 11.9 (13.3)
million in corporate acquisitions.
Risks and uncertainties
No such new major risks or uncertainties were identified in the
period under review which, if materialised, would be assessed to have
a significant impact on the Group. A detailed report on the Group's
risks and risk management is given in the Financial Statements of
2006.
Share capital and shares
The total number of shares at the end of 2006 was 58 180 144. During
the review period there were no changes in the number of shares.
Pöyry Plc issued in 2004 stock options to the management of the Group
as well as to a wholly-owned subsidiary of Pöyry Plc. The number of
stock options is 550 000, entitling to subscription of four shares
each, i.e. a total of 2 200 000 shares in Pöyry Plc.
The share subscription periods are the following: for stock options
2004A 660 000 shares between March 1, 2007 and March 31, 2010, for
2004B 660 000 shares between March 1, 2008 and March 31, 2011, and
for 2004C 880 000 shares between March 1, 2009 and March 31, 2012.
All stock options have been issued and their receipt confirmed.
24 800 new shares were subscribed with stock options 2004A during the
period under review, and 54 008 new shares after it. The shares will
be registered in the Trade Register after the period under review.
Following the registration of the subscribed shares the number of
shares totals 58 258 952.
The Annual General Meeting decided that a dividend of EUR 0.50 be
distributed per outstanding share for 2006 (EUR 0.325 for 2005),
totalling EUR 29.1 million. The dividend was paid on March 15, 2007.
The company's shares are quoted on the OMX Nordic Exchange in
Helsinki. The average trading price during the period under review
was EUR 14.40, with a high of EUR 17.84 and a low of EUR 11.37. A
total of 7.7 million of the company's shares
were traded, equalling 13.3 per cent of the total number of shares
and corresponding to a turnover of EUR 112.3 million.
Authorisation to issue shares
The Annual General Meeting on March 5, 2007 authorised the Board of
Directors to decide to issue new shares and to convey the company's
own shares held by the company in one or more tranches. The share
issue can be carried out as a share issue against payment or without
consideration on terms to be determined by the Board of Directors and
in relation to a share issue against payment at a price to be
determined by the Board of Directors.
A maximum of 11 600 000 new shares can be issued. A maximum of
5 800 000 own shares held by the company can be conveyed.
The authorisation is in force until the next Annual General Meeting.
The Board has not exercised the authorisation during the period under
review.
The decision made by the Annual General Meeting was published in its
entirety as a stock exchange notice on March 5, 2007.
Authorisation to acquire the company's own shares
The Annual Meeting authorised the Board of Directors to decide to
acquire the company's own shares with distributable funds on the
terms given below. The acquisition of shares reduces the company's
distributable non-restricted shareholders' equity.
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 is in force until the next Annual General Meeting.
The Board has not exercised the authorisation during the period under
review.
The decision made by the Annual General Meeting was published in its
entirety as a stock exchange notice on March 5, 2007.
Pöyry Plc does not hold its own shares. A subsidiary of Pöyry Plc
owns 8914 Pöyry Plc shares with a nominal value of EUR 2 228.50,
which equals to 0.02 per cent of the total amount of shares and
voting rights.
Prospects
Energy
The good performance of Southeast Asian, Latin American and European
economies, combined with the expansion of the EU, creates good
opportunities for growth of demand for energy-related services. The
increasing EU legislation related to energy is driving demand for
industry-specific management consulting services in the energy
sector. Environmental legislation, especially legislation aimed at
preventing climate change, continues to boost demand for renewable
energy and plant refurbishment services. The high price of crude oil
is creating new opportunities within the oil and gas sectors. In the
thermal power sector, clients focus on diversifying their energy mix.
The Energy business group's market position has improved further and
its order stock is good. The business group's operating profit will
improve clearly in 2007.
Forest Industry
Investment activity in the forest industry will remain relatively
strong in emerging markets. Rising production costs continue to call
for operational and productivity improvements in mature markets.
Industry restructurings will increase demand for consulting and
corporate restructuring services. Demand for biofuel and
chemical industry engineering services will remain strong. The
business group's order stock is good. The operating profit will
improve clearly during 2007.
Infrastructure & Environment
The infrastructure and environment markets have improved especially
in Central Europe, where the recovery of national economies has
boosted investments in the public sector. Maintaining a local
presence is becoming more important in emerging markets. Corporate
acquisitions made during 2007 expand the supply of services within
the business group's real estate business. The business group's order
stock has remained good. The operating profit will improve in 2007.
Group
The Group has a strong market position in all of its business areas.
The order stock is good and has increased by EUR 71.3 million during
the period under review. Consolidated net sales will increase in
2007. Profit before taxes is expected to improve clearly in 2007.
Vantaa, Finland, July 25, 2007
PÖYRY PLC
Board of Directors
PÖYRY PLC
Erkki Pehu-Lehtonen
President and CEO
Teuvo Salminen
Deputy to President and CEO
Additional information by:
Erkki Pehu-Lehtonen, President and CEO, Pöyry Plc
tel. +358 10 33 22999, +358 400 468 084
Teuvo Salminen, Deputy to President and CEO, Pöyry Plc
tel. +358 10 33 22872, +358 400 420 285
Satu Perälampi, VP, Corporate Communications and Investor Relations,
Pöyry Plc
tel. +358 10 33 23002, +358 40 526 3388
www.poyry.com
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Major media
PÖYRY GROUP
Consolidated statement
of income 4-6/2007 4-6/2006 1-6/2007 1-6/2006 1-12/2006
EUR million
NET SALES 173.0 153.9 340.0 297.9 623.3
Other operating income 0.2 0.1 0.9 0.2 0.3
Share of associated
companies' results 0.1 0.7 0.2 0.8 1.2
Materials and supplies -1.9 -4.7 -5.7 -10.1 -24.0
External charges,
subconsulting -21.7 -18.0 -40.4 -33.2 -73.2
Personnel expenses -92.9 -83.8 -184.0 -162.1 -327.7
Depreciation -2.0 -1.9 -4.1 -3.8 -7.8
Other operating
expenses -38.5 -36.0 -74.6 -69.2 -142.2
OPERATING PROFIT 16.3 10.3 32.3 20.5 49.9
Proportion of net
sales, % 9.4 6.7 9.5 6.9 8.0
Financial income 0.9 0.5 1.7 1.1 2.3
Financial expenses -0.4 -0.2 -0.7 -0.4 -1.2
Exchange rate
differences 0.0 -0.2 0.0 -0.3 -0.8
PROFIT BEFORE TAXES 16.8 10.4 33.3 20.9 50.2
Proportion of net
sales, % 9.7 6.8 9.8 7.0 8.1
Income taxes -5.4 -3.2 -10.7 -6.7 -15.4
NET PROFIT FOR THE
PERIOD 11.4 7.2 22.6 14.2 34.8
Attributable to:
Equity holders of the
parent company 11.0 6.9 21.9 13.8 33.6
Minority interest 0.4 0.3 0.7 0.4 1.2
Earnings per share, EUR 0.19 0.12 0.38 0.24 0.58
Corrected with dilution
effect 0.19 0.12 0.37 0.24 0.57
Consolidated balance sheet June 30, June 30, December 31,
EUR million 2007 2006 2006
ASSETS
NON-CURRENT ASSETS
Goodwill 74.6 50.9 61.4
Intangible assets 7.1 7.9 7.9
Tangible assets 17.3 15.5 17.0
Shares in associated companies 4.7 4.8 5.0
Other shares 6.9 6.9 6.7
Loans receivable 1.1 1.3 0.6
Deferred tax receivables 5.5 6.3 5.8
Pension receivables 2.4 4.8 3.1
Other 8.3 8.1 9.0
127.9 106.5 116.5
CURRENT ASSETS
Work in progress 70.5 67.8 52.7
Accounts receivable 131.5 120.7 134.2
Loans receivable 0.0 0.0 0.6
Other receivables 15.4 10.8 12.1
Prepaid expenses and accrued income 11.7 10.0 9.8
Cash and cash equivalents 68.9 50.7 74.9
298.0 260.0 284.3
TOTAL 425.9 366.5 400.8
EQUITY AND LIABILITIES
EQUITY
Equity attributable to the equity
holders of the parent company
Share capital 14.5 14.5 14.5
Share premium reserve 31.6 31.5 31.5
Legal reserve 19.1 18.6 19.1
Translation difference -10.7 -10.7 -10.9
Retained earnings 73.9 69.2 69.0
Net profit for the period 21.9 13.8 33.6
150.3 136.9 156.8
Minority interest 6.5 5.0 6.1
156.8 141.9 162.9
LIABILITIES
Non-current liabilities
Interest bearing non-current
liabilities 3.1 5.5 4.2
Pension obligations 6.8 7.0 6.9
Deferred tax liability 3.7 2.7 3.3
Other non-current liabilities 7.8 6.0 3.4
21.4 21.2 17.8
Current liabilities
Amortisations of interest bearing
non-current liabilities 2.7 2.6 2.7
Interest bearing current liabilities 16.7 11.3 6.6
Provisions 2.5 3.5 3.7
Project advances 86.4 62.0 70.0
Accounts payable 22.5 22.0 25.1
Other current liabilities 38.0 32.8 37.2
Current tax payable 2.1 1.7 8.2
Accrued expenses and deferred income 76.8 67.5 66.6
247.7 203.4 220.1
TOTAL 425.9 366.5 400.8
Statement of changes in
financial position 4-6/2007 4-6/2006 1-6/2007 1-6/2006 1-12/2006
EUR million
FROM OPERATING
ACTIVITIES
Net profit for the
period 11.4 7.2 22.6 14.2 34.8
Depreciation and
value decrease 2.0 1.9 4.1 3.8 7.8
Gain on sale of
fixed assets 0.0 0.0 -0.7 0.0 -0.1
Share of associated
companies' results -0.1 -0.7 -0.2 -0.8 -1.2
Financial items -0.5 -0.1 -1.0 -0.4 -0.3
Income taxes 5.4 3.2 10.7 6.7 15.4
Change in work in
progress -2.2 1.6 -17.9 -11.2 3.9
Change in accounts
and other
receivables -10.8 -16.8 1.1 -8.2 -25.5
Change in advances
received 4.6 6.5 15.9 11.0 18.9
Change in payables
and other
liabilities 10.1 6.1 6.4 4.9 15.5
Received financial
income 0.9 0.4 1.7 1.0 1.9
Paid financial
expenses -0.4 -0.2 -0.7 -0.5 -0.4
Paid income taxes -6.7 -2.5 -10.8 -6.0 -13.1
Total from operating
activities 13.7 6.6 31.2 14.5 57.6
CAPITAL EXPENDITURE
Investments in
shares in
subsidiaries -11.9 -10.6 -13.6 -14.9 -22.4
Investments in
other shares 0.0 0.0 0.0 0.0 0.0
Investments in
fixed assets -1.8 -1.5 -3.8 -3.2 -9.8
Sales of shares 0.0 0.0 0.6 0.5 0.5
Sales of fixed
assets 0.0 0.0 0.3 0.1 0.5
Capital expenditure
total, net -13.7 -12.1 -16.5 -17.5 -31.2
Net cash before
financing 0.0 -5.5 14.7 -3.0 26.4
FINANCING
Repayments of loans -0.9 -0.9 -1.4 -1.3 -2.5
Change in current
financing 3.3 10.3 10.1 9.9 5.4
Change in
non-current
investments 0.0 0.0 0.0 0.0 0.5
Dividends -1.3 -0.9 -29.5 -19.4 -19.4
Share subscription 0.1 0.0 0.1 0.0 0.0
Net cash from financing 1.2 8.5 -20.7 -10.8 -16.0
Change in cash and cash
equivalents 1.2 3.0 -6.0 -13.8 10.4
Cash and cash
equivalents at the
beginning of period 67.7 47.7 74.9 64.5 64.5
Cash and cash
equivalents at the end
of period 68.9 50.7 68.9 50.7 74.9
Changes in equity 4-6/2007 4-6/2006 1-6/2007 1-6/2006 1-12/2006
EUR million
Share capital beginning
of period 14.5 14.5 14.5 14.5 14.5
Shares subscribed
with stock options 0.0 0.0 0.0 0.0 0.0
Share capital end of
period 14.5 14.5 14.5 14.5 14.5
Share premium reserve
beginning of period 31.5 31.5 31.5 31.5 31.5
Shares subscribed
with stock options 0.1 0.0 0.1 0.0 0.0
Share premium reserve
end of period 31.6 31.5 31.6 31.5 31.5
Legal reserve beginning
of period 19.1 18.6 19.1 18.6 18.6
Transfer, retained
earnings 0.0 0.0 0.0 0.0 0.5
Legal reserve end of
period 19.1 18.6 19.1 18.6 19.1
Translation differences
beginning of period -11.0 -10.2 -10.9 -8.6 -8.6
Change during the
period 0.3 -0.6 0.2 -2.2 -2.4
Translation differences
end of period -10.7 -10.8 -10.7 -10.8 -10.9
Retained earnings
beginning of period 84.5 76.1 102.6 88.1 88.1
Payment of dividend 0.0 0.0 -29.1 -18.9 -18.9
Minority change 0.0 0.0 0.0 0.0 -0.2
Transfer, retained
earnings 0.0 0.0 0.0 0.0 -0.5
Other changes 0.3 0.0 0.4 0.0 0.8
Translation
difference included
in the result 0.0 0.1 0.0 0.1 -0.2
Net profit for the
period 11.0 6.9 21.9 13.8 33.6
Retained earnings end
of period 95.8 83.1 95.8 83.1 102.6
Minority interest
beginning of period 6.2 4.7 6.1 4.7 4.7
Change during the
period -0.1 0.0 -0.3 -0.1 0.2
Net profit for the
period 0.4 0.3 0.7 0.4 1.2
Minority interest end
of period 6.5 5.0 6.5 5.0 6.1
Total equity beginning
of period 144.8 135.2 162.9 148.9 148.9
Payment of dividend 0.0 0.0 -29.1 -18.9 -18.9
Shares subscribed
with stock options 0.1 0.0 0.1 0.0 0.0
Other changes 0.2 0.0 0.1 -0.2 0.8
Translation
differences 0.3 -0.6 0.2 -2.2 -2.4
Translation
difference included
in the result 0.0 0.1 0.0 0.1 -0.2
Net profit for the
period 11.4 7.2 22.6 14.2 34.8
Total equity end of
period 156.8 141.9 156.8 141.9 162.9
Contingent liabilities June 30, June 30, December 31,
EUR million 2007 2006 2006
For own debt 0.0 0.0 0.0
Other obligations
Pledged assets 0.4 0.3 0.5
Other obligations 44.1 44.9 46.4
For others
Pledged assets 0.0 0.0 0.1
Other obligations 0.0 0.0 0.0
Rent and lease obligations 107.7 107.2 107.0
Derivative instruments
Foreign exchange forward
contracts, notional values 24.6 24.0 34.9
Foreign exchange forward
contracts, 0.4 0.5 0.5
fair values -0.4 -0.1 -0.1
Interest rate swaps, fair
values 0.1 0.0 0.1
Pöyry Plc has made interest
rate swaps for EUR 4.8 million
external loans.
Related party transactions
The transactions with the
associated companies are
determined on an arm's length
basis.
Sales to associated
companies 0.1 0.6 0.7
Loans receivable from
associated companies 0.6 0.6 0.6
Accounts receivable from
associated companies 0.0 0.5 0.1
Shareholding 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 June 30, 2007 a total of 209 120
shares and 257 500 stock options (on December 31, 2006 a total
of 209 120 shares and 295 000 stock options 2004). With the
stock options the shareholding can be increased by 1 030 000
shares equalling 1.7 per cent of the total number of shares and
votes. The stock option programme is described in Financial
Statements 2006.
Key figures 4-6/2007 4-6/2006 1-6/2007 1-6/2006 1-12/2006
Earnings / share, EUR 0.19 0.12 0.38 0.24 0.58
Corrected with
dilution effect 0.19 0.12 0.37 0.24 0,57
Equity attributable to
equity holders of the
parent company/share,
EUR 2.58 2.35 2.70
Return on investment, %
p.a. 38.2 26.9 31.1
Return on investment, %
p.a. for the business
groups
Energy 27.3 20.8 23.3
Forest Industry 46.6 26.8 34.9
Infrastructure &
Environment 24.2 23.6 25.9
Return on equity, %
p.a. 28.2 19.5 22.3
Equity ratio, % 46.2 46.6 49.2
Equity / Assets ratio,
% 36.8 38.7 40.7
Net debt / Equity ratio
(gearing), % -29.7 -22.1 -37.6
Net debt, EUR million -46.4 -31.3 -61.3
Consulting and
engineering,
EUR million 558.1 514.0 500.8
EPC, EUR million 20.8 17.5 6.8
Order stock total, EUR
million 578.9 531.5 507.6
Capital expenditure,
operating, EUR million 1.8 1.5 3.8 3.2 9.8
Capital expenditure in
shares,
EUR million 11.9 12.0 11.9 13.3 27.9
Personnel in Group
companies on average 6545 5798 6038
Personnel in Group
companies
at the end of the
period 6960 6077 6389
Personnel in associated
companies at the end of
the period 271 275 236
Change in intangible
assets
EUR million
Book value at beginning
of period 7.3 8.1 7.9 8.5 8.5
Acquired companies 0.1 0.0 0.1 0.2 0.6
Capital expenditure 0.4 0.5 0.4 0.7 3.1
Decreases 0.0 0.0 0.0 0.0 -0.9
Depreciation and
expensed -0.7 -0.7 -1.3 -1.5 -3.4
Translation difference 0.0 0.0 0.0 0.0 0.0
Book value at end of
period 7.1 7.9 7.1 7.9 7.9
Change in tangible
assets
Book value at beginning
of period 17.1 15.2 17.0 15.2 15.2
Acquired companies 0.3 0.0 0.3 0.6 1.4
Capital expenditure 1.5 1.6 3.4 2.5 6.7
Decreases 0.0 0.0 -0.3 -0.1 -0.5
Depreciation -1.6 -1.3 -3.1 -2.7 -5.7
Translation difference 0.0 0.0 0.0 0.0 -0.1
Book value at end of
period 17.3 15.5 17.3 15.5 17.0
Segment information 1-6/2007 1-6/2006 1-12/2006
EUR million
NET SALES
Energy 103.2 88.4 197.4
Forest Industry 132.0 109.8 224.9
Infrastructure & Environment 104.2 99.0 201.8
Unallocated 0.6 0.7 -0.8
Total 340.0 297.9 623.3
OPERATING PROFIT AND NET PROFIT FOR THE
PERIOD
Energy 9.9 6.5 14.6
Forest Industry 16.4 9.0 22.9
Infrastructure & Environment 7.2 6.1 13.0
Unallocated -1.2 -1.1 -0.6
Operating profit total 32.3 20.5 49.9
Financial items 1.0 0.4 0.3
Profit before taxes 33.3 20.9 50.2
Income taxes -10.7 -6.7 -15.4
Net profit for the period 22.6 14.2 34.8
Profit attributable to:
Equity holders of the parent company 21.9 13.8 33.6
Minority interest 0.7 0.4 1.2
OPERATING PROFIT %
Energy 9.6 7.4 7.4
Forest Industry 12.4 8.2 10.2
Infrastructure & Environment 6.9 6.2 6.4
Total 9.5 6.9 8.0
ORDER STOCK
Energy 233.8 237.1 204.9
Forest Industry 140.2 109.1 111.4
Infrastructure & Environment 204.6 185.3 191.0
Unallocated 0.3 0.0 0.3
Total 578.9 531.5 507.6
Consulting and engineering 558.1 514.0 500.8
EPC 20.8 17.5 6.8
Total 578.9 531.5 507.6
NET SALES BY AREA
The Nordic countries 98.4 80.1 154.6
Europe 145.1 138.7 277.3
Asia 33.3 25.7 79.5
North America 17.4 11.8 26.6
South America 35.2 30.2 63.9
Other 10.6 11.4 21.4
Total 340.0 297.9 623.3
Segment information 7-9/05 10-12/05 1-3/06 4-6/06
EUR million
NET SALES
Energy 37.4 45.5 42.8 45.6
Forest Industry 47.4 50.4 52.8 57.0
Infrastructure & Environment 39.7 50.3 48.3 50.7
Unallocated 0.6 -0.9 0.1 0.6
Total 125.1 145.3 144.0 153.9
OPERATING PROFIT AND NET PROFIT FOR THE PERIOD
Energy 1.8 3.2 3.2 3.3
Forest Industry 5.9 5.0 4.4 4.6
Infrastructure & Environment 2.3 3.0 3.3 2.8
Unallocated -0.2 0.1 -0.7 -0.4
Operating profit total 9.8 11.3 10.2 10.3
Financial items 0.6 0.4 0.3 0.1
Profit before taxes 10.4 11.7 10.5 10.4
Income taxes -3.2 -3.8 -3.5 -3.2
Net profit for the period 7.2 7.9 7.0 7.2
Profit attributable to:
Equity holders of the parent company 7.4 7.7 6.9 6.9
Minority interest -0.2 0.2 0.1 0.3
OPERATING PROFIT %
Energy 4.8 7.0 7.5 7.2
Forest Industry 12.4 9.9 8.3 8.1
Infrastructure & Environment 5.8 6.0 6.8 5.5
Total 7.8 7.8 7.1 6.7
ORDER STOCK
Energy 197.6 195.2 220.0 237.1
Forest Industry 78.3 97.3 111.4 109.1
Infrastructure & Environment 144.2 159.5 187.6 185.3
Unallocated 0.2 0.1 0.1 0.0
Total 420.3 452.1 519.1 531.5
Consulting and engineering 388.1 428.1 496.9 514.0
EPC 32.2 24.0 22.2 17.5
Total 420.3 452.1 519.1 531.5
Segment information 7-9/06 10-12/06 1-3/07 4-6/07
EUR million
NET SALES
Energy 49.1 59.9 51.4 51.8
Forest Industry 54.8 60.3 64.6 67.4
Infrastructure & Environment 48.7 54.1 50.8 53.4
Unallocated 0.4 -1.9 0.2 0.4
Total 153.0 172.4 167.0 173.0
OPERATING PROFIT AND NET PROFIT FOR THE PERIOD
Energy 3.7 4.4 5.3 4.6
Forest Industry 6.4 7.5 7.8 8.6
Infrastructure & Environment 3.4 3.5 3.7 3.5
Unallocated -0.3 0.8 -0.8 -0.4
Operating profit total 13.2 16.2 16.0 16.3
Financial items 0.0 -0.1 0.5 0.5
Profit before taxes 13.2 16.1 16.5 16.8
Income taxes -4.2 -4.5 -5.3 -5.4
Net profit for the period 9.0 11.6 11.2 11.4
Profit attributable to:
Equity holders of the parent company 8.6 11.2 10.9 11.0
Minority interest 0.4 0.4 0.3 0.4
OPERATING PROFIT %
Energy 7.5 7.3 10.3 8.9
Forest Industry 11.7 12.4 12.1 12.8
Infrastructure & Environment 7.0 6.5 7.3 6.6
Total 8.6 9.4 9.6 9.4
ORDER STOCK
Energy 222.6 204.9 214.8 233.8
Forest Industry 111.0 111.4 154.1 140.2
Infrastructure & Environment 183.7 191.0 198.4 204.6
Unallocated 0.0 0.3 0.3 0.3
Total 517.3 507.6 567.6 578.9
Consulting and engineering 502.1 500.8 553.1 558.1
EPC 15.2 6.8 14.5 20.8
Total 517.3 507.6 567.6 578.9
Acquisitions during 2007
Acquisition Acquired
Name and business date interest, %
Rakennuslaskenta NHL Oy May 25, 2007 100
The company specialises in quantity and
cost calculations, building consulting
and condition assessment services. The
company is based in Turku, Finland and
has a staff of 23.
ZAO Giprobum Engineering June 15, 2007 70
The company specialises in investment
studies, services related to permitting
and agreements with authorities, various
sectors of plant engineering, and
construction management in the forest
industry. The company is based in St.
Petersburg, Russia and has a staff of
260.
Evata Worldwide Oy June 27, 2007 70
The company specialises in architectural
and interior design, workplace design,
office property consulting and services
related to real estate development. The
company is based in Helsinki, Finland and
has a staff of 100.
Aggregate figures for the above
acquisitions EUR million
Purchase price
Fixed price, paid 11.7
Additional 30%, estimate 3.3
Earnout estimate 0.6
Order intake estimate 0.0
Fees 0.2
Total 15.8
Price allocation
Equity 3.9
Fair value adjustments:
Client relationship 0.0
Order stock 0.0
Other 0.1
Total 4.0
Remaining = Goodwill 11.8
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
June 30, 2007 0.0
Sales volume on a 12-month calendar year
basis 2007 17.0
Operating profit on 12-month calendar
year basis 2007 1.5
Impact on the Pöyry Group's assets
and liabilities
EUR million Book values Fair Adjusted
at acqui- value IFRS
sition date adjustments values
Intangible assets 0.4 -0.3 0.1
Tangible assets 0.4 0.4
Shares 0.1 0.1 0.2
Deferred tax receivables 0.0 0.0
Work in progress 0.1 0.1
Accounts receivable 2.7 2.7
Other receivables 0.3 0.3
Cash and cash equivalents 2.3 2.3
Assets total 6.3 -0.2 6.1
Deferred tax liability 0.0 0.0
Provisions 0.0 0.0
Interest bearing liabilities 0.1 0.1
Project advances 0.5 0.5
Accounts payable 0.4 0.4
Other current liabilities 1.4 1.4
Liabilities total 2.4 0.0 2.4
Net identifiable assets and
liabilities 3.9 -0.2 3.7
Total cost of business
combinations 15.8
Paid 11.9
Additional price, estimate 3.9
Goodwill 12.1
Consideration paid, satisfied in
cash 11.9
Cash acquired 2.3
Net cash outflow 9.6
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
figures.
