Pöyry PLC : Pöyry PLC's notice concerning annual accounts for 2012

PÖYRY PLC          Financial Statement Release 6 February 2013 at 8:30 a.m. DISAPPOINTING 2012 - ACTIONS TAKEN TO RESTORE PROFITABILITY KEY FIGURES Pöyry Group |10-12/|10-12/|Change,|1-12/|1-12/|Change, | 2012| 2011| %| 2012| 2011| % -------------------------------------+------+------+-------+-----+-----+------- Order stock at end of period, EUR | 547.7| 694.4| -21.1|547.7|694.4| -21.1 million | | | | | | -------------------------------------+------+------+-------+-----+-----+------- Net sales total, EUR million | 190.7| 226.9| -16.0|775.0|796.1| -2.7 -------------------------------------+------+------+-------+-----+-----+------- Operating profit excl. | -3.4| 6.3| n.a.| 7.1| 30.4| -76.6 restructuring costs, | | | | | | EUR million | | | | | | -------------------------------------+------+------+-------+-----+-----+------- Operating margin excluding | -1.8| 2.8|  | 0.9| 3.8| restructuring costs, % | | | | | | -------------------------------------+------+------+-------+-----+-----+------- Operating profit, | -15.1| -0.5| n.a.|-17.9| 20.0| n.a. EUR million | | | | | | -------------------------------------+------+------+-------+-----+-----+------- Operating margin, % | -7.9| -0.2|  | -2.3| 2.5| -------------------------------------+------+------+-------+-----+-----+------- Profit before taxes, | -16.3| -0.8|  |-20.8| 17.1| n.a. EUR million | | | | | | -------------------------------------+------+------+-------+-----+-----+------- Earnings per share, basic, EUR | -0.26| -0.03| n.a.|-0.41| 0.13| n.a. -------------------------------------+------+------+-------+-----+-----+------- Earnings per share, diluted, EUR | -0.26| -0.03| n.a.|-0.41| 0.13| n.a. -------------------------------------+------+------+-------+-----+-----+------- Gearing, % | -| -|  | 51.3| 28.2| -------------------------------------+------+------+-------+-----+-----+------- Return on investment,  % (R12M) | -| -|  | -5.0| 7.4| n.a. -------------------------------------+------+------+-------+-----+-----+------- Dividend per share (*BoD proposal) | -| -|  | -| 0.20| -------------------------------------+------+------+-------+-----+-----+------- Dividend pay-out ratio, % (*BoD | -| -|  | -| n.a.| proposal) | | | | | | -------------------------------------+------+------+-------+-----+-----+------- Average number of personnel during | -| -|  |6,695|6,864| -2.5 period, calculated as full time | | | | | | equivalents (FTE) | | | | | | All figures and sums have  been  rounded  off  from  the  exact  figures  which may  lead  to  minor  discrepancies  upon  addition or subtraction. JANUARY-DECEMBER 2012 HIGHLIGHTS Figures in brackets, unless otherwise stated, refer to the same period the previous year. - The Group's order stock totalled EUR 547.7 million (694.4) at the end of the reporting period. EUR 52 million of the decrease comes from divestments concluded in 2012. - Consolidated net sales decreased by 2.7 per cent compared with the year before to EUR 775.0 million (796.1). - Operating profit excluding restructuring costs was EUR 7.1 million (30.4) corresponding to 0.9 per cent (3.8) of sales. - Operating profit declined in all business groups. - Restructuring costs in the reporting period totalled EUR 25.0 million. Fourth quarter restructuring costs amounted to EUR 11.7 million, and were related to addressing low-performing units, outsourcing of support functions and streamlining administrative processes. - Unallocated costs in January-December 2012 amounted to EUR 27.1 million. This includes EUR 17.0 million restructuring costs of which EUR 7.5 million related to divestments concluded in 2012 and EUR 9.5 million to actions to outsourcing of support functions and streamlining administrative processes. The remaining unallocated costs of EUR 10.1 million include extraordinary personnel expenses and an impairment of intangible rights. - The accounts receivable includes positions, which relate to certain public sector infrastructure projects in Venezuela. While the outstanding receivables are undisputed, uncertainty remains about the exact timing and amount of the expected payments. This fact is reflected in their current valuation estimated to approximately EUR 17 million following an impairment of EUR 4.8 million. - On 6 February 2013 Pöyry announced that it is improving its organisation by introducing Regional operations, thereby increasing its focus on domestic markets in order to strengthen long-term growth and profitability. Actions that target at EUR 40-50 million combined run-rate cost savings by the end of 2014 are on-going. Pöyry aims at reaching net sales amounting to EUR 1,000 million with a corresponding operating profit margin of 8-9% by the end of 2017. - From the beginning of the first quarter 2013, Pöyry's financial reporting will be based on the following four Business Segments: Management Consulting business group; Industry business group; Energy business group; and Regional Operations. The pro forma figures reflecting these changes will be communicated along with the first quarter 2013 interim report. DIVIDEND - The Group's parent company Pöyry PLC's net profit for 2012 amounted to EUR -20,500,624.05 and retained earnings were EUR 82,943,199.90. The total distributable earnings were EUR 62,442,575.85. - Considering the unsatisfactory performance, the Board of Directors will propose to the Annual General Meeting on 7 March 2013 that no dividend will be paid for the year 2012. NEW DISCLOSURE PROCEDURE IN PUBLISHING OF FINANCIAL FORECASTS Pöyry has updated its disclosure procedures in line with the applicable Finnish Securities Act. Hence, in 2013, Pöyry will publish its full year market outlook and financial forecast in its financial statement release. Furthermore, any corresponding updates to the outlook and financial forecast will be made in accordance with the on-going disclosure obligation. Pöyry will also cease publishing a financial forecast for its business groups. OUTLOOK FOR 2013 Pöyry's businesses are predominantly driven by clients' new capital investments and are mostly late in the economic cycles. It is difficult to predict the timing of clients' new investment decisions and project start-ups. The uncertainty around the general economic outlook remains high, which may impact upon investment activity in business segments that are relevant to Pöyry's operations. The Group's net sales in 2013 are expected to increase compared with 2012 and operating profit in 2013 is expected to increase compared with the operating profit excluding restructuring costs in 2012. CORPORATE GOVERNANCE STATEMENT Pöyry will publish its Corporate Governance Statement 2012 and its Financial Statements 2012 including the Board of Directors' report in week 7. The Corporate Governance Statement will be published separately from the Board of Directors' report and financial statements, and will be published on the company's website at www.poyry.com. MATERIALS TO THE AGM The financial statements, the Board of Directors' report, the corporate governance statement as well as other documents presented to the Annual General Meeting will be published on the company's website at www.poyry.com on 14 February 2013. Comments by ALEXIS FRIES, PRESIDENT AND CEO: "2012 turned out to be particularly challenging year for Pöyry. Amid difficult market environments and the prolonged global economic uncertainty the Group was again faced with disappointing operational results. The Group's order intake was below the previous year. Order stock declined as large projects received in the Industry Business Group in 2011 were being delivered and totalled EUR 548 million at the end of the year (694). Net sales were EUR 775 million (796) and operating profit before restructuring costs were EUR 7 million (30) or 0.9 per cent (3.8) of net sales. Extensive restructuring costs which amounted to EUR 25 million burdened the net result and the earnings per share were EUR -0.41. Our priority is to restore profitability by refocusing.  Pöyry enjoys clear leadership positions in its industrial and its energy sectors. A major portion of the Group's business, however, originates from a large number of medium and small sized domestic projects, which generate a steady flow of new orders across a wide range of client sectors. Hence, we have today announced an improved organisation enhancing our focus on domestic client business. Actions resulting in important cost savings by the end of 2014 are on-going. Pöyry aims at reaching the net sales of EUR 1,000 million with a corresponding operating profit margin of 8-9% by the end of 2017. As to the shorter-term outlook, the Group's net sales in 2013 are expected to increase compared with 2012 and operating profit in 2013 is expected to increase compared with the operating profit excluding restructuring costs in 2012." This is a summary of the January-December 2012 financial statement release. The complete report is published as an enclosure to this company announcement and is available in full on the company's web site at www.poyry.com. Investors are advised to review the complete financial statement release with tables. PÖYRY PLC Additional information from: Sanna Päiväniemi, Director, Investor Relations tel. +358 10 33 23002 INVITATION TO CONFERENCES TODAY 6 FEBRUARY 2012 Pöyry's January-December 2012 result will be presented at the news conferences as follows: - A conference for analysts, investors and press will be arranged at 12 p.m. Finnish time at Restaurant Savoy, Eteläesplanadi 14, Helsinki, Finland. The event will be hosted by Alexis Fries, President and CEO and Jukka Pahta, CFO. - An international conference call and webcast in English will begin at 5:00 p.m. Finnish time (EET). The event will be hosted by Jukka Pahta, CFO. 10:00 a.m. US EST (New York) 3:00 p.m. GMT (London) 4:00 p.m. CET (Paris) The webcast may be followed online on the company's website www.poyry.com. A replay can be viewed on the same site the next working day. To attend the conference call, please dial Finland: +358 (0)9 2313 9201 UK: +44 (0)20 7162 0077 US: +1 334 323 6201 Other countries: +44 (0)20 7162 0077 Conference ID: 927769 Due to the live webcast, we kindly ask those attending the international conference call and webcast to dial in 5 minutes prior to the start of the event. Pöyry is an international consulting and engineering company. We serve clients globally across the energy and industrial sectors and locally in our core markets. We deliver strategic advisory and engineering services, underpinned by strong project implementation capability and expertise. Our focus sectors are power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation, water and real estate sectors. Pöyry has an extensive local office network employing about 7,000 experts. Pöyry's net sales in 2012 were EUR 775 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V). DISTRIBUTION: NASDAQ OMX Helsinki Major media www.poyry.com Financial Statement Release January-December 2012: http://hugin.info/120101/R/1675648/545875.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Pöyry Oyj via Thomson Reuters ONE [HUG#1675648]