FINANCIAL STATEMENT RELEASE January-June Martin à Porta, President and CEO Juuso Pajunen, CFO

Transcription

1 FINANCIAL STATEMENT RELEASE January-June 2017 Martin à Porta, President and CEO Juuso Pajunen, CFO August 4, 2017

2 CONTENTS 1. January June overview 2. Continuous improvement 3. Key project and contract wins 4. Outlook Martin à Porta President & CEO 5. Financial performance Juuso Pajunen CFO 6. Appendices H1/2017 PRESENTATION 2

3 1 JANUARY JUNE OVERVIEW H1/2017 PRESENTATION 3

4 MARKET REVIEW: OVERVIEW Recovery seen in Europe The Middle East shows many opportunities but remains challenging overall Mixed development in Asian countries, but with strong demand in Energy Some signs of recovery in Latin America, but remains mixed Continued economic growth in the US H1/2017 PRESENTATION 4

5 MARKET REVIEW: BUSINESS LINES ENERGY Low oil prices delay investments in the Middle East Weak market situation in Northern and Central Europe Demand increasing in Asia and Latin America INDUSTRY Positive development in Europe, especially in Bioproducts Slower market development in Asia Customers reinitiating postponed investments REGIONAL OPERATIONS Solid public sector investment continue to open opportunities Good performance in Northern Europe, especially in Finland and Sweden Strong competition throughout the markets MANAGEMENT CONSULTING Good market situation in Central and Western Europe especially in energy sector Market situation in industry sector has improved H1/2017 PRESENTATION 5

6 H1: OPERATIONAL BUSINESS IMPROVING Adjusted operating result Positive in all Business Lines Increased in Energy, Industry and Regional Operations Business Lines Decreased in Management Consulting Net sales Remained stable in Regional Operations Decreased in Energy, Industry and Management Consulting Business Lines Order stock Group order stock increased Order stock increased in Energy, Management Consulting and Regional Operations, remained stable in Industry Book to bill was positive in all Business Groups All business lines are profitable Continued strengthening of sales focus Stronger order intake justifies positive outlook H1/2017 PRESENTATION 6

7 ADJUSTED OPERATING RESULT POSITIVE MEUR 1-6/ /2016 Change Order stock % Net sales % Operating result n.a. Adjusted operating result n.a. Net result n.a. H1/2017 PRESENTATION 7

8 Net sales, MEUR Adjusted operating margin, % DEVELOPMENT H H H1/2016 Growth versus PY semester % -1.7% -7.2% H2/2016 H1/ % % % % % % Book to bill*) *) Book to bill = order intake / net sales H1/2017 PRESENTATION 8

9 ADJUSTED OPERATING RESULT H MEUR Operating result Restructuring expenses and labour claims Gains/losses from former Urban Business Group Projects finalised over two years ago Adjusted operating result H1/2017 PRESENTATION 9

10 2 CONTINUOUS IMPROVEMENT H1/2017 PRESENTATION 10

11 WE CONTINUE IMPLEMENTING OUR OPERATIONAL FRAMEWORK AND ENHANCING CLIENT FOCUS Improving profitability Strengthening client focus 1. Simplify and empower 2. Strengthen the core 3. Scale up Clear expectations set Employee engagement clearly up Intrapreneur concept introduced New management added & increased management commitment Fixed cost reduction started, showing first impacts Simplification initiated New business management system introduced & transparency increased Number of loss-making units reduced Living The connected company Defend market share & increase margin Increase value & differentiate Next generation Pöyry Continued emphasis in client focus enabling increase in orderstock Strengthened intrapreneur concept Continued reduction of fixed expenses Continued improvement in employee engagement #PöyryDigital H1/2017 PRESENTATION 11

12 STREAMLINED GROUP EXECUTIVE COMMITTEE (FROM 7 AUGUST ONWARDS) Martin à Porta President and CEO Richard Pinnock Energy Business Group Juuso Pajunen Finance Nicholas Oksanen Industry Business Group H1/2017 PRESENTATION 12

13 3 KEY PROJECT AND CONTRACT WINS H1/2017 PRESENTATION 13

14 OWNER'S ENGINEER SERVICES ASSIGNMENT FOR 400 MW COMBINED CYCLE POWER PLANT (EAST), BANGLADESH Client: Ashuganj Power Station Company Ltd. (APSCL), Bangladesh Project: The Ashuganj 400 MW Combined Cycle Power Plant (East) will replace an old, inefficient 150 MW steam turbine generation plant. Pöyry's assignment includes Supervision of Demolition, Disposal and Site Preparation Supervision, Construction Supervision, Testing and Commissioning Supervision. Expected completion: 2020 H1/2017 PRESENTATION 14

15 DETAIL ENGINEERING SERVICES ASSIGNMENT FOR REVAMP OF DISPERSION PLANT IN WORMS, GERMANY Client: Synthomer Project: Pöyry s assignment includes detail engineering services for all disciplines as well as Health, Safety and Environment (HSE) management, permitting engineering, cost control and project scheduling. Synthomer's investment adds 30,000 tonnes to its existing capacity, adding several new production lines for acrylic dispersions. Expected completion: 2018 H1/2017 PRESENTATION 15

16 OWNER'S ENGINEER SERVICES ASSIGNMENT FOR NAM THEUN 1 HYDRO PROJECT, LAOS Client: Phonesack Group Project: The 650 MW Nam Theun 1 hydro power project is located at Nam Kading River. In continuation of previous assignments, Pöyry is now tasked with completing the Owner's Engineer Services for the Implementation as well as the Environmental and Social Mitigation Measures of the project until completion. Expected completion: 2022 H1/2017 PRESENTATION 16

17 SITE SUPERVISION SERVICES ASSIGNMENT FOR THE CONNECTION OF INNSBRUCK RAILWAY STATION INTO THE BRENNER BASE TUNNEL, AUSTRIA Client: ÖBB Infrastruktur AG Project: Pöyry has been awarded an assignment for site supervision services for the connection of Innsbruck Railway Station into the the Brenner Base Tunnel, 55 km railway tunnel under construction between Austria and Italy. Expected completion: 2019 H1/2017 PRESENTATION 17

18 4 OUTLOOK H1/2017 PRESENTATION 18

19 OUTLOOK FOR 2017 The Group s adjusted operating result is expected to improve clearly Market conditions Outlook good for pulp and paper in Europe and North America, reduced demand in Latin America, mixed in Asia Ongoing transformation of European energy market creates challenges for engineering services but opportunities for consulting Increase in growth expectations for Europe, although overall growth expected to be modest Modest signs of recovery in Brazil, but continues to be fragile The North American market remains strong In Economic growth in the majority of Asian countries continues to be fuelled by stronger domestic demand H1/2017 PRESENTATION 19

20 5 FINANCIAL PERFORMANCE H1/2017 PRESENTATION 20

21 ORDER STOCK MEUR (457.8) MEUR Increased in Energy, Management Consulting and Regional Operations Remained stable in Industry All business groups increasing if adjusted with currency fluctuations H1/2017 Energy Industry Regional Operations Management Consulting Comparable figures after divestments H1/2017 PRESENTATION 21

22 NET SALES MEUR (271.9) MEUR Remained stable in Regional Operations Decreased in other business lines H1/2017 LTMR H1/2016 H1/2017 Comparable figures after divestments H1/2017 PRESENTATION 22

23 ADJUSTED OPERATING RESULT MEUR (-1.7) MEUR Increased in Energy, Industry and Regional Operations Decreased in Management Consulting H1/2017 LTMR 6-2 H1/2016 H1/2017 Adjusted items 6.3 MEUR (2.6 MEUR) belong in clearly defined categories 1. Restructuring expenses and labour claims 2. Gains/losses from former Urban Business Group 3. Projects finalised over two years ago 4. Other H1/2017 PRESENTATION 23

24 NET SALES AND HEADCOUNT 1-6/2017 BY BUSINESS LINE Net sales EUR (271.9) million Headcount 5,305 (5,685) 11% 12% 24% 26% 8% 7% 22% 22% 36% 8% 36% 10% 54% 29% 60% 34% FTEs at the end of period 4,541 Energy Industry Regional Operations Management Consulting H1/2017 PRESENTATION 24

25 ENERGY BUSINESS GROUP: IMPROVED ADJUSTED OPERATING RESULT, NET SALES DOWN Net sales & adjusted operating margin, % MEUR % 9% 8% 7% Sales 64.3 (65.9) MEUR Decreased especially in the Middle East and in the Philippines where a larger project was in execution phase in % 6% 6% 5% 4% Adjusted operating result 3.5 (0.8) MEUR Operating result 3.5 (0.6) MEUR % 3% 2% 1% 0 H1/2015 H2/2015 H1/2016 H2/2016 H1/2017 Net sales Adjusted operating margin, % 0% Rolling 12 months H1/2017 PRESENTATION 25

26 INDUSTRY BUSINESS GROUP: IMPROVED ADJUSTED OPERATING RESULT, NET SALES DOWN Net sales & adjusted operating margin, % MEUR % 9% 8% Sales 76.4 (78.0) MEUR Decreased mainly due to difficult market conditions in Brazil % 4% 6% 7% 6% 5% 4% 3% 2% Adjusted operating result 6.0 (4.4) MEUR Operating result 4.6 (3.9) MEUR Adjusted items include labour claim expenses, as well as restructuring expenses in Latin America 20 1% 0 H1/2015 H2/2015 H1/2016 H2/2016 H1/2017 Net sales Adjusted operating margin, % 0% Rolling 12 months H1/2017 PRESENTATION 26

27 REGIONAL OPERATIONS: IMPROVEMENT IN ADJUSTED OPERATING RESULT AND NET SALES STABLE Net sales & adjusted operating margin, % MEUR % 9% 8% 7% 6% Sales 96.5 (96.3) MEUR Declined in Central Europe and North America Increased in all other regions % 0% 0% H1/2015 H2/2015 H1/2016 H2/2016 H1/2017 Net sales Adjusted operating margin, % 5% 4% 3% 2% 1% 0% -1% Adjusted operating result 3.3 (-2.9) MEUR Operating result: 0.7 (-4.2) MEUR Adjusted items mainly include project losses on projects originating from the former Urban Business Group as well as losses related to projects finalised over two years ago Comparable figures after divestments, rolling 12 months H1/2017 PRESENTATION 27

28 MANAGEMENT CONSULTING: ADJUSTED OPERATING RESULT DECREASED Net sales & adjusted operating margin, % MEUR % % 6% 10% 9% 8% 7% 6% 5% 4% 3% Sales 30.6 (31.9) MEUR Adjusted operating result 1.6 (2.3) MEUR Operating result 1.6 (1.8) MEUR Decrease in adjusted operating result is mainly related to the devaluation of the British Pound and lower amount of success fees received in H compared to H % 1% 0 H1/2015 H2/2015 H1/2016 H2/2016 H1/2017 Net sales Adjusted operating margin, % 0% Rolling 12 months H1/2017 PRESENTATION 28

29 CASH FLOW MEUR Cash flow from operations -1.9 (-32.0) MEUR Increase in net working capital contained better than earlier years at 7.8 MEUR (28.2 MEUR) Cash flow before financing -3.1 (-33.8) MEUR *) 2014**) /2017 From operations Before financing *) 2013 includes the divestment of the office real estate in Vantaa, Finland **) 2014 includes the divestment of real estate business in Finland H1/2017 PRESENTATION 29

30 NET DEBT, EQUITY AND GEARING MEUR % 40% 35% 30.5% 30% 25% Net debt 37.8 (39.3) MEUR Equity (120.2) MEUR 60 20% Gearing 30.5 (32.7)% End of period Equity Net debt Gearing -% 15% 10% 5% 0% In H Pöyry signed with its core banks and Finnish financial institutions an extension of its term loan and revolving credit facility arrangements until June The office real estate in Vantaa, Finland, was included in the balance sheet in 2012 and sold in H H1/2017 PRESENTATION 30

31 Thank you Consulting. Engineering. Projects. Operations.

32 6 APPENDICES H1/2017 PRESENTATION 32

33 RETURN ON INVESTMENT, % 12% 8% 4% 5.0% 0% -4% -8% -12% End of period H1/2017 PRESENTATION 33

34 STATEMENT OF INCOME MEUR 1-6/ /2016 Net sales Other operating income Materials and supplies External charges, sub-consulting Personnel expenses Other operating expenses Operating result Net financial items Share of associated companies results Result before taxes Income taxes Net result for the period H1/2017 PRESENTATION 34

35 BALANCE SHEET MEUR 30 Jun Jun 2016 Goodwill Other non-current assets Work in progress Accounts receivable Other current assets Cash and cash equivalents Total assets Equity Interest bearing liabilities Pension obligations and other noncurrent liabilities Project advances Accounts payable Other current liabilities Total equity and liabilities H1/2017 PRESENTATION 35

36 CASH FLOW MEUR 1-6/ /2016 Net result for the period Adjustments Depreciation and impairment losses Financial items and taxes Other adjustments Change in working capital Paid income taxes Total from operating activities Net cash flow from investing activities Net cash before financing Net cash from financing Change in cash H1/2017 PRESENTATION 36

37 KEY FIGURES 1-6/ /2016 Earnings per share, EUR (diluted) Earnings per share adjusted, EUR Equity per share, EUR ROI-% ROE-% Equity ratio-% Gearing-% Net debt, EUR million Capital expenditure, EUR million Personnel on average (FTE) 4,545 4,900 H1/2017 PRESENTATION 37