Jaakko Pöyry Group. Annual Report 1999

Transcription

1 Jaakko Pöyry Group

2 Figures

3 EUR million 4 Net Sales

4 EUR million 4 Net Sales 3 Infrastructure & Environment Energy 2 Forest Industry Consulting 1 Forest Industry, Rebuild and Maintenance Forest Industry, New Investments

5 Net Sales by Business Group EUR million Forest Industry Forest Industry Consulting Energy Infrastructure & Environment

6 Net Sales by Market Area 1998 Total EUR million 1999 Total EUR million Asia 11 % North America 11 % Other 6 % Asia 18 % North America Other 6 % 8 % The Nordic Countries 23 % O ther E urope 37 % The Nordic Countries 35 % O ther E urope 45 % 6

7 EUR million 3 Operating Profit and Profit after Financial Items OP PAFI 15% Annual PAFI growth 7

8 EUR million 4 Order Stock Incl. Electrowatt 8

9 Order Stock by Market Area 1998 EUR million 1999 EUR million Asia 18 % North America 3 % Other 6 % Asia 24 % North America 3 % Other 9 % The Nordic Countries 23 % O ther E urope 32 % The Nordic Countries 41 % O ther E urope 41 % 9

10 EUR 1,2 Earnings per Share 1,,8,6,4,2, EPS 15% Annual EPS growth 1

11 EUR 1,2 Earnings per share and Dividend per Earnings 1,,8,6,4 37,6% 4,5% EPS Dividend/earnings,2 32,4%, Board of Director s Proposal 11

12 % Return on Investment

13 % Net debt/equity ratio (gearing)

14 Personnel total BY BUSINESS GROUP BY MARKET AREA Infras tructure & Environmen 27 % t Other 1 % Other Europe 3 % Asia 1 % Other 6 % North America 3 % Energy 28% Forest Industry 37 % Forest Industry Consulting 7 % The Nordic countries 51 % 14

15 Continuous growth of technology and office network in 1999 Company Business Group Net Sales EUR million Personnel Electrowatt Ltd, Switzerland Energy, Infra & Environment Beture S.A. Energy, Infra & Environment Interpap, Poland Forest Industry, Energy 2 4 Jaakko Pöyry S.A., Argentina Infra & Environment 7 3 Rigel Consult, Sweden Forest Industry 4 5 Suoraplan, Finland Infra & Environment 1 7 Tecnologia, Brazil, Chile Forest Industry 8 8 Jaakko Pöyry Norge A/S, Norway Forest Industry Total (appr.)

16 Financial Targets Profitability Targets on the average EBIT -% ROI -% > 8. > 2. Earnings EPS EPS, Annual Growth-% > 15. Balance sheet Gearing -% < 3. Dividend policy Pay-out ratio -% > 4. 16

17 Highlights 1999! Net sales increased by 52.3 per cent, operating profit by 23.2 per cent and the order stock by 18.8 per cent (proforma 22.2 per cent)! Earnings per share improved 24.7 per cent! Jaakko Pöyry Group increased its interest in Electrowatt Engineering Ltd to 1 per cent! Finvest Oyj sold its shareholding in the Jaakko Pöyry Group, the liquidity of the shares increased! The price of Jaakko Pöyry Group Oyj:s share increased by 76.4 per cent 17

18 Jaakko Pöyry Group Prospects Growth

19 Forest Industry! Outsourcing. Forest industry companies outsourcing of services and the increased number of rebuilds are boosting demand for services provided by the Jaakko Pöyry Group s local offices, especially in Central Europe and North America! Globalisation. A leading forest industry expert, the Jaakko Pöyry Group is involved in the globalisation process as an advisor to clients in all forest industry market areas! Consolidation. The consolidation of the forest industry continiues. JP Capital International Ltd in London, specialising in forest industry restructuring, is actively engaged in the consolidation process 19

20 Energy! Liberalisation and privatisation of energy market. Relying on its comprehensive expertise in the energy sector, the Jaakko Pöyry Group is well equipped to serve as an advisor in national and international energy markets! Environmental pressures stricter. Environmental requirements and agreements, such as the Kyoto Protocol, provide a good basis for the Jaakko Pöyry Group s special know-how and expertise (e.g. in hydropower and waste management)! Maintenance and rehabilitation projects. Existing power plants need to be maintained and their efficiency improved. The Group s local office network and innovative technological expertise offer good prospects for growth in this sector 2

21 Infrastructure & Environment! Fast population growth. Worsening traffic jams and increased polution, especially in fastgrowing population centres, create demand for mass transit systems, such as underground railways, city railway systems and high-speed trains! Growing environmental loads. Making use of its know-how and technological expertise, Jaakko Pöyry Group can contribute to solving the world s growing water and waste water problems! Enlargement of the EU. The EU is providing extensive financing for infrastructure and environmental projects in countries aspiring to join the EU. To this end, the EU has created several financing programmes 21

22 Prospects 2 General! Stronger growth is forecasted in Europe, Asia and Latin America! 9 per cent of net sales is derived from Europe, Asia and Latin America 22

23 Forest Industry! Higher pulp and paper prices have a favourable impact on the forest industry s investments! Investments will primarily be concerned with rebuilds, number of new projects is slowly increasing! General business forecast is expected to improve activity level and earnings, especially in the second half of year 2 23

24 Forest Industry Consulting! Positive market outlook in pulp and paper industry! The industry s consolidation is expected to continue, creates new business for Forest Industry Consulting! Earnings are expected to improve 24

25 Energy! Investment in effective industrial and municipal power production, rebuilds and development of renewable energy resources! Market recovery in Asia, Middle East and Eastern Europe! Earnings prospects are favourable 25

26 Infrastructure & Environment! Continued economic growth, rapid population growth and increased urbanisation are the underlying elements for continued growth! Demand for traffic systems, communication systems, water supply and environmental protection! The operations of the business group will remain stable 26

27 Financial targets 2! Continued growth! Earnings improvement according to strategic targets 27

28 Annexes

29 Business Groups

30 EUR million 12 Net Sales and Operating Profit Forest Industry EUR million 2 EUR million 8 Order Stock NS OP

31 EUR million Net Sales and Operating Profit Forest Industry Consulting EUR million 3 EUR million 3 Order Stock NS OP

32 EUR million Net Sales and Operating Profit EUR million 1 8 Energy EUR million Order Stock NS OP

33 Infrastructure & Environment EUR million 1 Net Sales and Operating Profit EUR million 8 EUR million 1 Order Stock NS 6 4 OP

34 Additional Financial Data

35 Consolidated Statement of Income JAAKKO PÖYRY GROUP EUR Million Change % NET SALES 395,4 259,7 52,3 OPERATING PROFIT 27,2 22,1 23,2 Proportion of net sales, % 6,9 8,5 PROFIT AFTER FINANCIAL ITEMS 25,3 2,6 22,7 Proportion of net sales, % 6,4 7,9 NET PROFIT FOR THE PERIOD 15, 12,1 24,5 35

36 Consolidated Balance Sheet EUR Million ASSETS FIXED ASSETS 96,2 89,2 CURRENT ASSETS 27,8 117,9 TOTAL 34, 27, 1 SHAREHOLDERS' EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY 87,6 71,4 MINORITY INTEREST 4,9 5, 3 LIABILITIES 211,5 13,4 TOTAL 34, 27, 1 36

37 Division of Sales by Business Group 1 % 9 % 8 % 7 % 6 % Infrastructure & Environment Energy 5 % 4 % 3 % 2 % Forest Industry Consulting Forest Industry 1 % %

38 Operating Profit by Business Group EUR million F ores t Indus try F ores t Indus try Consulting Energy Infrastructure & Environment

39 Order Stock by Business Group 1998 EUR million 1999 EUR million Infras tructure & Environment 16 % In fras tructure & Environment 26 % Energy 44 % Forest Industry 25 % Forest Industry 2 % Forest Industry Consulting 15 % Energy 48 % Forest Industry Consulting 6 % 39

40 EUR million Capital Expenditure Shares Operating

41 EUR million 6 Financing Cash in hand and at banks Interest-bearing liabilities Net debt 41

42 Shareholders and shares

43 Shareholders and shares Major Shareholders Per cent of shares and voting rights Corbis S.A. 23,3 Odin Norden 6,3 Procurator Oy 4,1 Mutual Pension Insurance Company Varma-Sampo 3,2 Pohjola Life Assurance Company Ltd 2,6 Sampo Life Insurance Company Ltd 2,5 Odin Finland 2,2 Merita Life Assurance Ltd 1,2 Bicerva Investments S.A. 1,1 Unit Trust Fund Alfred Berg Small Cap,8 Tapiola General Mutual Insurance Company,8 ABB Pension Foundation,6 Others 51,3 Total 1 Per cent of shares and voting rights is based on the total shares excluding own shares

44 Development of the share price on Helsinki Stock Exchanges 25 JPG1V (EUR ) HEX-portfolio price index Market capitalisation EUR million 12/97 3/98 3/98 6/98 6/98 9/98 9/98 12/98 12/98 3/99 3/99 6/99 6/99 9/99 9/99 12/

45 Amount of shares exchanged 1 pcs 2 Helsinki 7.3 million Stockholm /97 6/98 12/98 6/99 12/99 45