Interim Report I. January March April 28, 2003

Transcription

1 Interim Report I January March 23 April 28, 23

2 2 Business groups The Jaakko Pöyry Group s net sales for the period under review were EUR 12. (1.4 in the same period 22) million. Profit before extraordinary items was EUR 16.4 (5.2) million, including a gain of EUR 11. million from the sale of s headquarter property. The Group s consolidated balance sheet is healthy. The equity ratio was 51.6 (46.2) per cent and the net debt/equity ratio (gearing) 2.8 (1.8) per cent. The Jaakko Pöyry Group s earnings per share were EUR.81 (.24) and the return on investment 51.3 (15.7) per cent. The Group s order stock was EUR million. It increased by EUR 33.5 million during the period under review. The Group s earnings are expected to improve in 23 and most of the improvement will mainly take place during the second half of the year. In addition, the earnings will be improved by the EUR 11 million gain from the sale of the headquarter property. Forest Industry Net sales for the period under review were EUR 35.2 (39.6) million. Operating profit amounted to EUR 4. (5.6) million. The order stock was EUR 91.8 (at the end of ) million. Forest Industry Consulting Net sales for the period under review were EUR 8. (1.1) million. Operating profit was EUR.3 (.4) million. The order stock amounted to EUR 9.2 (7.5) million. Energy Net sales for the period under review were EUR 24.3 (24.1) million. Operating profit was EUR.8 (-1.4) million. The order stock amounted to EUR 122. (123.8) million. Infrastructure & Environment Net sales for the period under review were EUR 34.4 (27.) million. Operating profit was EUR 2. (1.8) million. The order stock was EUR (99.4) million. Other operations Nordisk Renting Oy, a subsidiary of Nordea Bank, on February 5, 23 bought Jaakko Pöyry Group Oyj s headquarter property in Vantaa, Finland. At the same time, Jaakko Pöyry Group Oyj and Nordisk Renting Oy signed a rental agreement for the property, extending over the next 2 years. Before the present deal, the Jaakko Pöyry Group rented its headquarter office building from Nordea Finance Ltd, with the option to buy back the property. Following the deal, the entire office property, including the Jaakko Pöyry Group s headquarter office building, the

3 GROUP STRUCTURE ORDER STOCK Interim Report I/23 site and half of the Martinparkki Oy car park, will be taken over by Nordisk Renting Oy. has an option to buy back these at a later date. The deal is a continuation of s effort to focus its financial resources on the company s core business, consulting and engineering. The deal improves the Jaakko Pöyry Group s profit before extraordinary items by EUR 11 million for the period under review. Efforts to further develop the Group s structure and business operations continued during the period under review. JP Management Consulting (Europe) Oy, which is a company in the Forest Industry Consulting business group, acquired the business of Redbeard Consulting B.V., which operates in the European market. Redbeard Consulting offers strategic and IT consulting services to the European paper industry. Redbeard Consulting employs 4 people. JP-Terasto Oy, a company in the Infrastructure & Environment business group, acquired HT-Rakennuttajat Oy based in Turku, Finland, thereby expanding its operations in the southwestern parts of the country. HT-Rakennuttajat specialises in project and construction management work. HT-Rakennuttajat Oy employs 1 people. Efforts to further develop the Group s structure and business operations will continue during the current year. The Group s order stock is good and it has increased by EUR 33.5 million during the period under review, totalling EUR million at the end of March, compared with EUR million at the end of March 22. At the end of December 22 the order stock was EUR 38.4 million. The A.T. Biopower Company Ltd power plant project, which was published in September 22, is not included in the order stock, as financing arrangements for the project have not progressed as expected. CAPITAL EXPENDITURE The Group s capital expenditure for the period under review totalled EUR 3.3 (2.2) million, of which EUR 2.2 (2.2) million consisted of computer software, systems and hardware and EUR 1.1 (.) million were capital expenditure due to business acquisitions. SHARE CAPITAL AND SHARES The total number of shares at the end of 22 was After the period under review, in April, 865 new shares were subscribed based on warrants pursuant to the Bond Loan with Warrants of Following these subscriptions, the number of shares totals

4 PROSPECTS Interim Report I/23 The warrants related to the Bond Loan with Warrants issued by in 1998 to the Group personnel and the parent company s Board of Directors carry subscription rights for a total of 1.3 million of the company s shares, with the subscription period beginning partly (39 shares) on April 1, 2, partly (39 shares) on April 1, 21, and partly on April 1, 22 (52 shares). The subscription period ends for all warrants on April 3, 25. A total of shares have been subscribed based on the warrants. The Annual General Meeting on March 5, 23 authorised the Board of Directors to decide on an increase in the share capital by a new issue and/or by taking a convertible loan and/or by issuing option rights so that based on the new issue, the convertible bonds and option rights the share capital can be increased by a maximum of EUR 1. million by issuing for subscription a maximum of 1. million new shares. The authorisation is in force until March 5, 24. The Annual General Meeting authorised the Board of Directors to acquire and convey the company s own shares to a maximum of 689 5, which is less than 5 per cent of the company s share capital. The Board of Directors decided on March 5, 23 to exercise the authorisations. The authorisations are in force until March 5, 24. The company has acquired a total of 69 2 shares during the period February 18 April 4, 23. The average acquisition price was EUR During 22 a total of 1 shares were acquired. The company s shares are quoted on the Helsinki Exchanges. The average trading price during the period under review was EUR 14.26, with a high of EUR 15.2 and a low of EUR 13.. A total of.7 million of the company s shares (equalling 5. per cent of the total number of shares) were traded, corresponding to a turnover of EUR 9.7 million. The Annual General Meeting approved the Board of Directors proposal that a dividend of EUR.6 be paid per share for 22 (EUR.6 for 21), totalling EUR 8.3 million. The dividend was paid on March 17, 23. World economic prospects for 23 are still uncertain. Economic growth is expected to be modest in 23, and normal growth is not expected to resume until 24. The Jaakko Pöyry Group s balance sheet structure, liquidity and order stock are good, having improved further during the period under review. The order stock represents a normal price level. The forest industry s investment activity has remained relatively flat and the depressed earnings of forest industry companies do not support a quick recovery. However, investments in emerging markets, such as China, are showing a growing trend. The Forest Industry business group s earnings development has improved and its order stock has grown. The business group s operating profit will improve in 23 compared with the previous year. The business environment in the consulting sector is still difficult and no immediate improvement is in sight. The Forest Industry Consulting business group s earnings for the period under review were unsatisfactory, so measures to improve profitability will continue. The business group s operating profit for 23 will remain at the previous year s level or improve slightly. 4

5 Demand for services related to renewable energy resources, plant modernisations and consulting expertise is growing in the energy sector. There are also signs of renewed investment activity in the production of primary energy. The Energy business group streamlined its activities in in line with the reduced demand. As a result, its earnings have improved and its operating profit for 23 will improve clearly compared with 22. The Infrastructure & Environment business group has continued to grow steadily. Its order stock has grown and its operating profit for 23 will improve slightly compared with the previous year. The general market situation and economic prospects for the current year are challenging. The Jaakko Pöyry Group s order stock, market position and balance sheet structure have continued to strengthen. In view of the business group prospects outlined above, the Group s earnings are expected to improve in 23. A number of major projects included in the order stock will start to improve the work load during the second quarter, so the earnings improvement will mainly take place in the second half of the year. In addition, the Group s earnings will be improved by the EUR 11 million gain from the sale of the headquarter property. 5 Vantaa, April 25, 23 Board of Directors

6 6 Consolidated Statement of Income 1-3/23 1-3/ /22 (EUR million) NET SALES 12, 1,4 47, Other operating income 11,5,7 1,4 Share of associated companies' results -,1 -,1 -,1 Operating expenses -93,6-92,4-376,6 Depreciation of consolidation goodwill -1,2-1, -4,5 Other depreciation -2,2-2,2-8,8 OPERATING PROFIT 16,4 5,4 18,4 Proportion of net sales, % 16,1 5,4 4,5 Financial income and expenses, -,2 -,3 PROFIT BEFORE EXTRAORDINARY ITEMS 16,4 5,2 18,1 Proportion of net sales, % 16,1 5,2 4,5 Extraordinary items,,, PROFIT BEFORE TAXES AND MINORITY INTEREST 16,4 5,2 18,1 Income taxes -5,3-1,8-5,7 Minority interest, -,1 -,1 NET PROFIT FOR THE PERIOD 11,1 3,3 12,3

7 7 March 31, March 31, December 31, Consolidated Balance Sheet (EUR million) ASSETS FIXED ASSETS Consolidation goodwill 34,4 3,9 34, Intangible and tangible assets 28,6 37,8 32,7 Non-current investments 1,1 13,5 12,5 CURRENT ASSETS Receivables 142, 143,2 146,1 Investments, cash in hand and at banks 38,2 31,7 26, SHAREHOLDERS' EQUITY AND LIABILITIES 253,3 257,1 251,3 SHAREHOLDERS' EQUITY 16,8 99,8 14,3 MINORITY INTEREST 4,8 5,2 5, LIABILITIES *) Non-current liabilities 22,8 2,1 23,1 Current liabilities 118,9 132, 118,9 253,3 257,1 251,3 *) IInterest bearing liabilities 15,1 33,6 19,9 Non-interest bearing liabilities 126,6 118,5 122,1

8 8 Statement of changes in financial situation 1-3/23 1-3/ /22 (EUR million) FROM OPERATIONS Operating profit 16,4 5,4 18,4 Depreciation and value decrease 3,4 3,2 13,3 Gain on sale of fixed assets -11,, -,3 Share of associated companies' results,1,1,1 Change in net working capital 3,3-2, -3,4 Financial income and expenses,1 -,2,2 Taxes -1,7-2,3-7, Total from operations 1,6 4,2 21,3 CAPITAL EXPENDITURE Investments in shares in subsidiaries -1,1, -2,5 Investments in other shares,, -,2 Investments in fixed assets -2,2-2,2-9,1 Sales of shares and investments 12,8,,5 Sales of fixed assets 6,, 2,5 Capital expenditure total 15,5-2,2-8,8 Cash flow before financing 26,1 2, 12,5 FINANCING New loans,,, Repayments of loans,, -7,7 Change in current financing -4,9 4,4-1,5 Change in non-current investments,, -,1 Dividends -7,8-8,2-8,6 Acquisition of own shares -,3, -,1 Share subscription,, 1,6 Translation difference -,9 1, -2,6 Financing total -13,9-2,8-19, Change in liquid assets 12,2 -,8-6,5 Liquid assets January 1 26, 32,5 32,5 Liquid assets at the end of period 38,2 31,7 26,

9 9 March 31, March 31, December 31, Contingent Liabilities (EUR million) Pledged assets and mortgages for own debt Mortgages on company assets,,2, Other obligations Pledged assets,3 2,3 2,5 Rent and leasing obligations 14,4 51,7 46,1 Pension obligations,,, Other obligations 22,6 31,9 25,1 For others Pledged assets,,,1 Mortgages, real estate, 3,8 3,8 Other obligations,1,,1 Derivative Instruments Foreign exchange forward contracts, Notional values 7,2 12,9 11,9 Fair values,1 has made interest rate swaps for EUR 15. million external loans.

10 1 Key Figures 1-3/23 1-3/ /22 Earnings / share, EUR,81,24,9 Corrected with dilution effect,79,23,86 Shareholders' equity / share, EUR 7,77 7,33 7,57 Return on investment, % p.a. 51,3 15,7 14,5 Return on equity, % p.a. 4,3 12,6 11,3 Equity ratio, % 51,6 46,2 51, Equity / Assets ratio, % 44, 4,8 43,5 Net debt / Equity ratio (gearing), % -2,8 1,8-5,6 Consulting and engineering, EUR million 336,8 27,5 31,6 EPC, EUR million 5,1 17,8 6,8 Order stock total, EUR million 341,9 288,3 38,4 Capital expenditure, operating, EUR million 2,2 2,2 9,1 Capital expenditure in shares, EUR million 1,1, 2,5 Personnel in group companies in average Personnel in group companies at the end of the period Personnel in associated companies at the end of the period

11 11 Key Figures for the Business Groups 1-3/3 1-3/2 1-12/2 1-3/1 4-6/1 7-9/1 1-12/1 1-3/2 4-6/2 7-9/2 1-12/2 (EUR million) NET SALES Forest Industry 35,2 39,6 137,9 4, 38,9 33,3 38, 39,6 34,6 29,7 34, Forest Industry Consulting 8, 1,1 35,8 12,1 11,7 11,2 11,4 1,1 1,2 7,9 7,6 Energy 24,3 24,1 111,2 34,1 33, 28, 31,9 24,1 27,8 3,9 28,4 Infrastructure & Environment 34,4 27, 122,7 26,9 26,3 24,6 29,7 27, 3,9 28, 36,8 Other,1 -,4 -,6,, 1, -,3 -,4, -,4,2 Total 12, 1,4 47, 113,1 19,9 98,1 11,7 1,4 13,5 96,1 17, OPERATING PROFIT AND PROFIT BEFORE EXTRAORDINARY ITEMS Forest Industry 4, 5,6 13,3 5,1 4,7 4,3 3,7 5,6 2,9 2,3 2,5 Forest Industry Consulting -,3,4,2,2,4 -,1,8,4,6, -,8 Energy,8-1,4 -,7-4,4,6 1,5 1,7-1,4 -,5 -,3 1,5 Infrastructure & Environment 2, 1,8 8,5 2,1 1,4 1, 3,4 1,8 1,8 2,3 2,6 Other 9,9-1, -2,9 4,5 -,6-1, -1,3-1, -,1 -,8-1, Operating profit total 16,4 5,4 18,4 7,5 6,5 5,7 8,3 5,4 4,7 3,5 4,8 Financial items, -,2 -,3 -,6 -,4 -,5 -,2 -,2,3 -,4, Profit before extraordinary items 16,4 5,2 18,1 6,9 6,1 5,2 8,1 5,2 5, 3,1 4,8 ORDER STOCK Forest Industry 91,8 66,5 77,7 93,5 82,2 76,7 74,2 66,5 6,3 72,2 77,7 Forest Industry Consulting 9,2 11,7 7,5 22,8 23, 2,4 18,5 11,7 7,2 6,9 7,5 Energy 122, 113,2 123,8 9,3 91,2 93,4 123,5 113,2 119,6 125,4 123,8 Infrastructure & Environment 118,9 96,9 99,4 95,5 96,2 96,6 13,7 96,9 93,8 97,3 99,4 Total 341,9 288,3 38,4 32,1 292,6 287,1 319,9 288,3 28,9 31,8 38,4 Consulting and engineering 336,8 27,5 31,6 278,6 272,6 265,9 298,1 27,5 266,8 292,6 31,6 EPC 5,1 17,8 6,8 23,5 2, 21,2 21,8 17,8 14,1 9,2 6,8 Total 341,9 288,3 38,4 32,1 292,6 287,1 319,9 288,3 28,9 31,8 38,4 NET SALES BY AREA The Nordic countries 31,6 3,6 117,5 Continental Europe 43,6 42,4 172,8 Asia 11,8 13,9 6,3 North America 6,4 5,2 21,5 South America 3,8 5,9 22,2 Other 4,8 2,4 12,7 Total 12, 1,4 47, The figures in the interim report are unaudited.

12 12 EUR million NET SALES EUR million OPERATING PROFIT EUR EARNINGS/SHARE ,, ,8,7,6 6 1,5,4 4,3 5,2 2, , % RETURN ON INVESTMENT % 3 NET DEBT/EQUITY RATIO (GEARING) EUR million 5 FINANCING /1 9/1 12/1 3/2 6/2 9/2 12/2 3/3-3 6/1 9/1 12/1 3/2 6/2 9/2 12/2 3/3-5 6/1 9/1 12/1 3/2 6/2 9/2 12/2 3/3 Cash in hand Inter.-bear. liab. Net debt EUR million 4 ORDER STOCK 5 PERSONNEL /1 9/1 12/1 3/2 6/2 9/2 12/2 3/3 Consulting and engineering EPC 6/1 9/1 12/1 3/2 6/2 9/2 12/2 3/3 Group companies Associated companies