Pöyry Company presentation 2006

Transcription

1 Pöyry Overview Business review Financials Growth Share More information at

2 Pöyry global consulting and engineering Core operations based on three know-how clusters Consulting and engineering services Global market leader in Forest Industry Strong international position in Energy and Infrastructure & Environment Net sales about EUR 600 million Global coverage with 6000 experts in their fields Extensive local office network in 45 countries 2

3 Business review

4 Strategy and way of operating Focus on three core sectors: Energy, Forest Industry, Infrastructure & Environment Business concept based on providing innovative and value-added products and solutions, and a full range of services Pöyry is the preferred supplier for its clients Lifecycle concept: consulting, engineering, PM/CM, maintenance engineering, O&M Best available technology combined with local know-how Strong market position and growth Business idea Approval of investment proposal Plant take-over Plant development Development Implementation Production Rationalisation Feedback 4

5 Energy business group Business trends Business areas Liberalisation of energy markets Environmental legislation and Kyoto CO 2 targets Increase in oil prices causing energy mix changes Energy demand growth in China, India and Southeast Asia Rehabilitation and re-powering of aging facilities Management Consulting Hydropower Renewable Energy Power and Heat Oil and Gas 5

6 Energy Q3 net sales and operating profit EUR million 160 Net sales EUR million 12 Operating profit

7 Energy Q3 highlights Profitability and market share improvement Acquisition of an international oil and gas company Order stock is good and was EUR million New orders Verbund s hydro power project in Austria EUR 13 million EGL Group s power plant engineering in Italy EUR 7.3 million SouthEast Asia Energy s hydropower plant in Laos EUR 8.9 million Hochtief Glendoe Joint Venture s hydropower plant in the UK EUR 5 million Qatar Petroleum s sea water cooling project in Abu Dhabi EUR 17 million EUR million Order stock 3/05 6/05 9/05 12/05 3/06 6/06 9/06 7

8 Forest Industry business group Business trends Business areas New investments in emerging markets (Latin America, China) Low investment level in North America, Western Europe and Japan Consolidation Outsourcing Management Consulting New Investment Projects Rebuild Projects Local Services 8

9 Forest Industry Q3 net sales and operating profit EUR million 200 Net sales EUR million 20 Operating profit

10 Forest Industry Q3 highlights Good development of activities despite pulp & paper market situation Strengthening of position in China by JV Bolt-on acquisition of two structural engineering companies Order stock remained stable and was EUR million New orders Solvay s hydrogen peroxide plant in Belgium UPM- Kymmene s Kymi pulp mill rebuild in Finland EUR 10 million Klabin s board machine and Aracruz pulp mill projects in Brazil EUR 20 million 0 EUR million Order stock 3/05 6/05 9/05 12/05 3/06 6/06 9/06 10

11 Infrastructure & Environment business group Business trends Business areas Climate change Rail traffic displacing road and flight traffic EU expansion Increased funding by IFIs High growth in Russia and in Baltic states Transportation Water and Environment Real Estate and Telecommunications 11

12 Infrastructure & Environment Q3 net sales and operating profit EUR million 180 Net sales EUR million 10 Operating profit

13 Infrastructure & Environment Q3 highlights Good financial performance Bolt-on acquisition of geotechnical engineering company in Finland Order stock is good and was EUR million New projects Metro de Maracaibo s light rail transport system in Venezuela EUR million 80 Zhengzhou-Xian Passenger Dedicated Line s high-speed railway 60 construction supervision in China EUR 2.6 million 40 C.A. Metro de Valencia s light rail 20 system in Venezuela EUR 12.6 million 0 EUR million Order stock 3/05 6/05 9/05 12/05 3/06 6/06 9/06 13

14 Financials

15 Net sales EUR million Consulting and engineering EPC 15

16 Profit before taxes and net profit EUR million * * sale of headquarter office building Profit before taxes IFRS Net profit IFRS 16

17 Return on investment % IFRS IFRS 17

18 Net debt/equity ratio (gearing) % IFRS IFRS Target below 30% 18

19 Earnings per share EUR 2,00 1,60 1,20 0,80 0,40 0, IFRS IFRS 19

20 Dividend/share and pay-out ratio EUR 2,00 % 100 1, , , , , IFRS IFRS Dividend/share Pay-out ratio, % 0 20

21 Financial targets and performance /05 1-9/06 Target Profitability FAS FAS IFRS IFRS on average PBT, EUR million ROI, % Earnings EPS, EUR *) EPS, annual growth, % Balance sheet Gearing,% < 30.0 Dividend Policy Dividend, EUR *) Pay-out ratio, % *) share split 21

22 Targets with Pöyry brand Strengthen the Global Network Company strategy Unite all efforts to gain more strength Build equity into one brand Ensure further growth and profitability 22

23 Business focus 2006 Targeted acquisitions: local service, market position, technology know-how Growth in emerging markets Global Network Company enhancement Continued profitability improvement 23

24 Order stock EUR million /2004 3/2005 6/2005 9/ /2005 3/2006 6/2006 9/2006 Consulting and engineering EPC 24

25 Prospects Energy: Operating profit will improve clearly in Forest Industry: Operating profit will improve somewhat during Infrastructure & Environment: Operating profit will improve clearly in Pöyry group: Net sales will increase in Profit before taxes will improve clearly in

26 Growth

27 Net sales EUR million Other Infrastructure & Environment Energy Forest Industry Forest Industry, new investments 12% annual growth /

28 Division of sales by business group 100 % 90 % 80 % 70 % Infrastructure & Environment 60 % 50 % Forest Industry 40 % 30 % 20 % Energy 10 % 0 %

29 Polarisation of technical consulting sector Global, diversified products Local, limited number of products Price competition Scale of economies Consolidation 1000 Employees

30 Pöyry s position within the sectors Market share Forest Industry Energy Infrastructure & Environment Size of the market 30

31 Growth through acquisitions Consolidation trend in the consulting and engineering sector Experience in acquiring tens of companies Acquisition track record e.g IGL Consultants, UK 2005 S.P.E. Servizi per l Energia, Italy 2005 GKW Holding, Germany 2005 Scancontrol, Sweden 2004 Verbundplan, Austria 2004 AQUATIS, Czech Republic 2004 CMC-Yhtiöt, Finland and the Baltic countries 2003 NLK Consultants, Canada 2003 ILEX Energy Consulting, UK 2002 ABGS, Canada 2002 Heusch-Boesefeldt, Germany 2001 Rigel Konsult i Gävle, Sweden 2000 Bridge business of VCE, Taiwan 1999 Beture Environnement and Beture-Cerec, France Electrowatt Engineering, Switzerland 1997 Marathon Engineers/Architects/Planners, USA and several smaller acquisitions 31

32 Organic growth Mainly in emerging markets: China, Russia, Latin America, Eastern Europe Organic growth 7 percentage units in 2005 Use of global network to sell our services/products Continuous new product development, e.g. river basin management, document management services, laser scanning 32

33 M&A activities continued Acquisitions in 2006 TH Consulting Oy, Finland, structural engineering Salminen & Sorasalmi, Finland, structural engineering operations in Russia Savon Tekmi Oy, Finland, geotechnical services JV with Shangdong Light Industry Design Institute, China, detail engineering IGL Consultants Ltd, UK, acquired in May 2006 Design, operations support and specialist consulting services to the oil & gas sector Net sales EUR 11 million, operating profit EUR 1.5 million, 120 employees Following the transaction Pöyry provides multi-discipline services in North Sea and Asia Pacific region and the Middle East Convergence Utility Consultants Ltd, Switzerland, acquired in October 2006 Business, strategy and economics consulting services Net sales EUR 8 million, operating profit EUR 1.6 million, 70 employees Acquisition strengthens Pöyry s position as biggest management consultant in Europe 33

34 Share

35 Share price and market capitalisation EUR 10,00 Share price EUR million 600 Market capitalisation 9,00 8, ,00 6, , ,00 3, ,00 1, , /

36 Dividend/share EUR 1,60 1,20 0,80 0,40 0,

37 Shareholders and shares September 30, 2006 Number of shares Per cent of shares and voting rights Corbis S.A ,7 Procurator Oy ,9 Ilmarinen Mutual Pension Insurance Company ,4 Varma Mutual Pension Insurance Company ,3 Tapiola Mutual Pension Insurance Company ,0 Nordea Fund company Ab (FI) ,5 OP-Delta Sijoitusrahasto ,3 Placeringsfonden Aktia Capital ,0 Svenska Litteratursällskapet i Finland ,5 OP-Suomi Pienyhtiöt -sijoitusrahasto ,0 Shares nominee register ,6 Other owners ,8 Total ,0 37

38 Research coverage Carnegie, Helsinki Enskilda Securities, Helsinki Evli Bank, Helsinki FIM Securities, Helsinki Handelsbanken, Stockholm Kaupthing Bank, Helsinki Nordea, Helsinki Opstock Securities, Helsinki Öhman Fondkommission, Helsinki 38