JANUARY-JUNE 2012 INTERIM REPORT

Transcription

1 JANUARY-JUNE 212 INTERIM REPORT JULY 27, 212 Jukka Pahta, CFO PRESENTATION CONTENTS January-June 212 overview January-June 212 financials Outlook Appendices Q2/212 PRESENTATION 2

2 JANUARY-JUNE 212 OVERVIEW Q2/212 PRESENTATION 3 CAPACITY UTILISATION REMAINED STABLE DURING EARLY 212 Industrial Production*, Monthly Review from Jan28 to May 212 Index (25=1) Euro region Finland USA Russia Germany Capacity Utilisation (manufacturing industries), Quarterly from Q1/28 to Q2/212 1 Index (2=1) 95 9 Germany 85 8 EU27 Euro17 75 USA 7 65 Finland *) Seasonally adjusted (Source: IMF, Eurostat, Federal Reserve Bank of St.Louis, OECD) Q2/212 PRESENTATION 4

3 ORDER STOCK REMAINED ON A SATISFACTORY LEVEL The Group's order stock totalled EUR million (742.1) at the end of Q2/212 January-June 212 net sales increased by 8.8 per cent compared with the year before to EUR 48.3 million (375.3). Operating profit excluding restructuring costs was EUR 7.5 million (15.5) corresponding to 1.8 per cent (4.1) of sales. Group s operating profit excluding restructuring costs for 212 is expected to decline compared with 211. Q2/212 PRESENTATION 5 JANUARY-JUNE 212 FINANCIALS Q2/212 PRESENTATION 6

4 GROUP S NET SALES 1-6/212 (1-6/211) MEUR /11 1-6/12 Q2/212 PRESENTATION 7 GROUP S NET SALES BY QUARTER MEUR Q1/9 Q2/9 Q3/9 Q4/9 Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q2/212 PRESENTATION 8

5 GROUP S NET SALES BY BUSINESS GROUP AND BY REGION 1-6/212 (1-6/211) Net sales by business group Net sales by region Management Consulting 1(12) % Energy 28 (28) % South America 21 (13) % Other 2 (5) % Nordics 31(29) % Urban 29 (33) % North America 4 (5) % Asia 7 (7) % Industry 34 (27) % 35(41) % Other Europe Q2/212 PRESENTATION 9 GROUP S OPERATING PROFIT AND MARGIN, 1-6/212 (1-6/211) MEUR Operating profit Operating margin 7% 6% % % 3.8 % 4.1 % % % 5% 4% 3% 2% 5 1% -.4 % % % Excl. one-offs Excl. one-offs Incl. one-offs Q2/212 PRESENTATION 1

6 OPERATING PROFIT AND MARGIN BY BUSINESS GROUP 1-6/212 (1-6/211), excluding restructuring MEUR Operating margin, % 1.5 (9.5) % 1.9 (3.4) %.6 (4.3) MEUR 2.3 (4.2) MEUR Management Consulting Urban Industry Energy 5.6 (3.1) % 7.8 (3.1) MEUR 1.2 (5.5) % 1.4 (5.8) MEUR Q2/212 PRESENTATION 11 GROUP S OPERATING PROFIT AND MARGIN BY QUARTER MEUR % 7% 6% 5% 4% 3% 2% 1% Operating profit Operating margin -2 Excl. one-offs Incl. one-offs % -1% Q2/212 PRESENTATION 12

7 GROUP S ORDER STOCK BY BUSINESS GROUP MEUR Management Consulting Urban(* Industry Energy 1 (* Urban & Mobility and Water & Environment were merged into Urban business group in the beginning of 212 Q2/212 PRESENTATION 13 RETURN ON INVESTMENT, % 5% 45% 4% 35% 3% 25% 2% 15% 1% 5% %. % end of period Q2/212 PRESENTATION 14

8 CASH FLOW From operations Before financing (* end of period *) Cash flow before financing in 211 includes the acquisition of the Vantaa Head Office building Q2/212 PRESENTATION 15 NET DEBT, EQUITY & GEARING MEUR Gearing-% 1% 9% % 7% 6.4 % 6% % 4% 3% 2% 1% % -1% -2% -3% -4% -5% (* end of period Equity Gearing-% Net debt * )The Vantaa Head Office building was included in the balance sheet in Q2/211. Q2/212 PRESENTATION 16

9 OUTLOOK Q2/212 PRESENTATION 17 OUTLOOK FOR 212 GROUP: The Group s net sales in 212 are expected to remain stable compared with 211. The Group s operating profit for 212, excluding restructuring costs, is expected to decline compared with 211. BUSINESS GROUPS: Net sales are expected to remain stable in all business groups. Operating profit in the Energy is expected to decline and in the Management Consulting business group to decline clearly. Operating profit in the Industry business group is expected to improve. Operating profit in the Urban business group is expected to improve significantly considering the low comparison figure. The operating profit outlook and comparison to 211 both refer to figures excluding restructuring costs. Q2/212 PRESENTATION 18

10 THANK YOU! Q2/212 PRESENTATION 19 APPENDICES Q2/212 PRESENTATION 2

11 REVIEW BY BUSINESS GROUP Q2/212 PRESENTATION 21 ENERGY (* Order stock (left scale) and net sales (right scale), MEUR Order stock Net sales Operating profit, MEUR (left scale) and margin % (right scale) Excl. one-offs Incl. one-offs 9% 8% 7% 6% 5% 4% 3% 2% 1% % Operating profit Operating margin + Good order intake during the quarter + Net sales increased Major new orders in 212: OE Services Contract for the Shoaiba II Power Plant in Saudi Arabia Frame agreement as Technical Consultants with Svenska Kraftnät, SWE Extension and modernisation of transmission system substations, AUT Detailed engineering for BoP for UPM Schongau mill CCPP plant, GER Modernisation of a distribution system substation, AUT Q2 operating margin 1.5 % (4.8), excl. restructuring Operating profit burdened by low activity in a number of European offices as a consequence of project delays and low investments + Efforts on business development and actions to adapt capacity to the workload and market conditions started to show positive signs compared with Q1/212 *) pro forma Figures in brackets refer to previous year Q2/212 PRESENTATION 22

12 INDUSTRY Order stock (left scale) and net sales (right scale), MEUR Order stock Net sales Operating profit, MEUR (left scale) and margin % (right scale) Excl. one-offs* Incl. one-offs 23% 2% 17% 14% 11% 8% 5% 2% -1% -4% -7% -1% -13% -16% Operating profit Operating margin Order stock value decreased Large projects in implementation phase Order intake in LPS continued steadily but overall order intake lower than year before Major new orders in 212: Detailed engineering for UPM Biorefinery project, FIN Detailed engineering for Iron ore benefication plant expansion in Brazil Frame agreement with Metsä Group for technical consulting and engineering services, FIN Environmental Study, Basic Engineering and Detailed Engineering for site infrastructure for the Klabin greenfield pulp mill project in Brazil Q2 operating margin 3.8 % (3.9), incl. restructuring + Operating profit declined due to some recognised project and credit losses and efforts on business development Figures in brackets refer to previous year Q2/212 PRESENTATION 23 URBAN (* Order stock (left scale) and net sales (right scale), MEUR Order stock Net sales Operating profit, MEUR (left scale) and margin % (right scale) Excl. one-offs Incl. one-offs 18% 16% 14% 12% 1% 8% 6% 4% 2% % -2% -4% -6% -8% -1% -12% Operating profit Operating margin + Order stock on a good level Net sales were burdened by project delays, mainly outside the core markets Major new orders in 212: Technical services to the Ho Chi Minh City Metro in Vietnam Project management services for large retail store in China Q2 operating margin -.2 % (3.6), excl. restructuring Operating profit declined due to recognised one time project and credit losses from mainly outside the core markets. Actions to increase focus in the business group included e.g. continued rieview of the international business and divestment of a smaller unit in Romania. *) pro forma Figures in brackets refer to previous year Q2/212 PRESENTATION 24

13 MANAGEMENT CONSULTING Order stock (left scale) and net sales (right scale), MEUR Operating profit, MEUR (left scale) and margin % (right scale) Order stock Net sales Excl. one-offs Incl. one-offs 17% 15% 13% 11% 9% 7% 5% 3% 1% -1% -3% -5% -7% Operating profit Operating margin % + Order stock value on a normal level Net sales declined mainly due to challenges in North America and Asia- Pacific The economic uncertainty and consequently decreasing industry profit levels in general in energy markets did impact short-term client behaviour in the European markets during the quarter Q2 operating margin 1.% (11.9) + Performance in the European main markets relatively stable Low sales in North America and Asia- Pacific as well as impacts of European market environment were reflected in the operating profit for the quarter Actions taken to broaden the consulting offering are running but did not have an impact yet Figures in brackets refer to previous year Q2/212 PRESENTATION 25 GROUP FINANCIALS Q2/212 PRESENTATION 26

14 STATEMENT OF INCOME 1-6/ /211 CHANGE, % Net sales Other operating income Share of associated companies results.3.3. External charges, sub-consulting Personnel expenses Other operating expenses Operating profit n.a. Net financial items Profit/loss before taxes n.a. Income taxes Net profit for the period n.a. Q2/212 PRESENTATION 27 BALANCE SHEET ASSETS 3 Jun Jun EQUITY AND 211 LIABILITIES 3 Jun Jun 211 Goodwill Equity Other non-current assets Interest bearing non-current liabilities Work in progress Other non-current Other current assets Project advances Cash and cash equivalents Other current liabilities TOTAL ASSETS TOTAL EQUITY AND LIABILITIES Q2/212 PRESENTATION 28

15 CASH FLOW 1-6/ /211 Operating income before change in net working capital Change in net working capital Financial items and taxes Total from operating activities Investments in shares in subsidiaries deducted with cash acquired Other capital expenditure Net cash before financing Net cash from financing Change in cash and cash equivalents and in other liquid assets Cash and cash equivalents and other liquid assets at the beginning of the period Impact of translation differences in exchange rates Cash and cash equivalents and other liquid assets at the end of the period Q2/212 PRESENTATION 29 KEY FIGURES 1-6/ /211 Earnings per share, EUR (diluted) Equity per share, EUR ROI-%, p.a.. 1. ROE-% Equity ratio-%, p.a Gearing-% Net debt, EUR million Capital expenditure in acquisitions, EUR million. 1. Capital expenditure, operating, EUR million Capital expenditure, land and buildings, EUR million Personnel on average 6,816 6,712 Personnel at the end of the period 6,783 6,792 Q2/212 PRESENTATION 3