Reporting period 1 January 30 September 2009 in brief:
- SRV's revenue was EUR 264.9 million (EUR 415.5 million in January-September
2008), change 36.3% negative
- Operating profit was EUR 7.2 million (EUR 32.2 million), change 77.7%
negative
- Profit before taxes was EUR 3.5 million (EUR 26.3 million), change 86.7%
negative
- The order backlog at the close of the review period was EUR 464.8 million (EUR
455.2 million), change 2.1%
- New contracts EUR 275,8 million (EUR 283.7 million), change 2.8% negative
- The equity ratio was 41.0 per cent (45.9%)
- Earnings per share were EUR 0.04 (EUR 0.49)
- SRV adheres to the previous outlook for 2009, revenue and operating profit in
2009 are estimated to be below the previous year's figures, but profit before
taxes is estimated to be clearly positive.
Third quarter 1 July - 30 September 2009 in brief:
- Revenue amounted to EUR 84.3 million (EUR 126.7 million in July - September
2008)
- Operating profit was EUR 1.8 million (EUR 14.1 million)
- Profit before taxes was EUR 0.6 million (EUR 11.2 million)
- Earnings per share were EUR 0.01 (EUR 0.21)
The interim report has been prepared in accordance with IAS 34. The disclosed
information is unaudited.
“Downscale in construction has had an essential impact on SRV's business
operations. Despite sharp decline in revenue, SRV's financial result is
positive, even though it is on unsatisfactory level. In difficult market
situation we have been able to increase our order backlog, and the volume of new
contracts remains almost on previous year's level. The Group's operations have
been adjusted to lower the cost level. As the start-ups of developer contracting
projects have been postponed, SRV has focused on finding new customers.
Revenue and operating profit for SRV's Business Premises business area declined
compared to the corresponding period last year. Operational profitability
remained on good level. Housing sales has picked up from the all-time low level
at the end of the previous year. SRV has decided to start several developer
contracting projects, which will be included in the order backlog during the
latter part of the year. The Russian economy has remained weak and it has put
both SRV's and the clients' projects on hold.
The fund established in early June with VTB Capital and Deutsche Bank is a step
in implementing SRV's growth strategy in Russia. The arrangement opens a chance
for SRV to be the project management contractor in numerous significant
construction projects in major Russian cities. SRV estimates that the growth
potential in Russia is good, and continues the endeavours in development
projects.
SRV's equity ratio is 41.0 per cent and the group's financing position has
remained solid. Good solvency and financing position give us possibility to
utilise SRV's innovative project development know-how when the economic recovery
starts", says Hannu Linnoinen, president and CEO of SRV.
--------------------------------------------------------------------------------
| Group key figures | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-9/ | 1-9/ | chang | change | 7-9/ | 7-9/ | 1-12/ |
| | 2009 | 2008 | e, | ,% | 2009 | 2008 | 2008 |
| | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Revenue | 264.9 | 415. | -150. | -36.3 | 84.3 | 126.7 | 537.0 |
| | | 5 | 7 | | | | |
--------------------------------------------------------------------------------
| Operating profit | 7.2 | 32.2 | -25.0 | -77.7 | 1.8 | 14.1 | 32.9 |
--------------------------------------------------------------------------------
| Financial income | -3.7 | -5.9 | 2.2 | | -1.2 | -2.9 | -9.2 |
| and expenses, total | | | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 3.5 | 26.3 | -22.8 | -86.7 | 0.6 | 11.2 | 23.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 464.8 | 455. | 9.5 | 2.1 | | | 455.3 |
| | | 2 | | | | | |
--------------------------------------------------------------------------------
| New agreements | 275.8 | 283. | -8.0 | -2.8 | 86.2 | 36.7 | 399.1 |
| | | 7 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, % | 2.7 | 7.7 | | | 2.1 | 11.1 | 6.1 |
--------------------------------------------------------------------------------
| Net profit, % | 0.5 | 4.3 | | | 0.2 | 6.0 | 2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | 41.0 | 45.9 | | | | | 41.3 |
--------------------------------------------------------------------------------
| Net interest | 189.2 | 127. | | | | | 169.4 |
| bearing debt | | 9 | | | | | |
--------------------------------------------------------------------------------
| Gearing, % | 115.9 | 75.2 | | | | | 101.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on | 4.8 | 18.5 | | | | | 12.9 |
| investment, % 1) | | | | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | 1.1 | 14.6 | | | | | 9.4 |
| 1) | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.04 | 0.49 | | | 0.01 | 0.21 | 0,43 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 4.46 | 4.61 | | | | | 4.54 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Weighted average | 36.1 | 36.6 | | -1.5 | | | 36.5 |
| number of shares | | | | | | | |
| outstanding | | | | | | | |
--------------------------------------------------------------------------------
1)In calculating the key ratio only the profit for the period has been
annualised
Consolidated revenue was EUR 264.9 million (EUR 415.5 million in
January-September 2008). The share of revenue generated in Finland was 93 per
cent (88%) whereas 7 per cent (12 %) came from Russia and the Baltic countries.
Revenue in the Business Premises business area was EUR 141.1 million (EUR 271.2
million). Revenue in the Housing business area was EUR 104.2 million (EUR 94.5
million). Revenue in the International business area was EUR 19.6 million (EUR
49.8 million).
The Group's operating profit was EUR 7.2 million (EUR 32.2. million in
January-September 2008). Operating profit margin was 2.7 per cent (7.7%).
Operating profit in the Business Premises business area was EUR 13.7 million
(EUR 21.8 million). Operating profit in the Housing business area was EUR 2.9
million (EUR 1.9 million). Operating loss in the International business area was
EUR 5.9 million (a profit of EUR 11.9 million).
The Group's profit before taxes was EUR 3.5 million (EUR 26.3 million in
January-September 2008). Net profit for the review period was EUR 1.3 million
(EUR 18.0 million). Earnings per share were EUR 0.04 (EUR 0.49). Return on
equity was 1.1 per cent (14.6%) and return on investment was 4.8 per cent
(18.5%).
The Group's revenue for the third quarter was EUR 84.3 million (EUR 126.7
million in July-September 2008) and operating profit EUR 1.8 million (EUR 14.1
million). Profit before taxes was EUR 0.6 million (EUR 11.2 million). Earnings
per share were EUR 0.01 (EUR 0.21)
The order backlog was EUR 464.8 million on 30 September 2009 (EUR 455.2 million
on 30 September 2008). The share of order backlog which has been sold
(construction contracts and sold developer contracting production) amounted to
EUR 324 million (EUR 279 million on 30 September 2008), and the unsold share
amounted to EUR 141 million (EUR 176 million). Value of new contracts signed
during the review period was EUR 275.8 million (EUR 283.7 million in January -
September 2008).
Key figures for the Segments
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Revenue | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| (EUR million) | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Business Premises | 141.1 | 271.2 | -130. | -48.0 | 40.2 | 74.3 | 349.1 |
| | | | 1 | | | | |
--------------------------------------------------------------------------------
| Housing | 104.2 | 94.5 | 9.7 | 10.3 | 37.9 | 31.4 | 127.9 |
--------------------------------------------------------------------------------
| International | 19.6 | 49.8 | -30.3 | -60.8 | 6.2 | 21.0 | 60.1 |
--------------------------------------------------------------------------------
| Other Operations | 6.4 | 8.5 | -2.1 | -24.4 | 2.1 | 2.7 | 11.5 |
--------------------------------------------------------------------------------
| Eliminations | -6.6 | -8.5 | 1.9 | | -2.3 | -2.7 | -11.6 |
--------------------------------------------------------------------------------
| Group, total | 264.7 | 415.5 | -150. | -36.3 | 84.2 | 126.7 | 537.0 |
| | | | 8 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Operating profit | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| (EUR million) | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Business Premises | 13.7 | 21.8 | -8.1 | -37.3 | 3.1 | 3.7 | 27.8 |
--------------------------------------------------------------------------------
| Housing | 2.9 | 1.9 | 1.0 | 51.4 | 1.0 | 0.5 | 0.7 |
--------------------------------------------------------------------------------
| International | -5.9 | 11.9 | -17.9 | -149. | -1.5 | 10.8 | 9.2 |
| | | | | 6 | | | |
--------------------------------------------------------------------------------
| Other Operations | -3.3 | -3.5 | 0.2 | | -0.7 | -1.0 | -4.9 |
--------------------------------------------------------------------------------
| Eliminations | -0.1 | 0.1 | -0.2 | -268. | -0.1 | 0.0 | 0.1 |
| | | | | 5 | | | |
--------------------------------------------------------------------------------
| Group, total | 7.2 | 32.2 | -25.0 | -77.7 | 1.8 | 14.1 | 32.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | IFRS | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (%) | 1-9/2009 | 1-9/2008 | 7-9/2009 | 7-9/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| Business Premises | 9.7 | 8.0 | 7.7 | 4.9 | 8.0 |
--------------------------------------------------------------------------------
| Housing | 2.7 | 2.0 | 2.7 | 1.7 | 0.6 |
--------------------------------------------------------------------------------
| International | -30.3 | 24.0 | | | 15.4 |
--------------------------------------------------------------------------------
| Group, total | 2.7 | 7.7 | 2.0 | 11.1 | 6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | IFRS | IFRS | muutos, | muutos, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | meur | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 252.0 | 228.8 | 23.2 | 10.2 | 265.7 |
--------------------------------------------------------------------------------
| Housing | 186.5 | 186.3 | 0.2 | 0.1 | 154.0 |
--------------------------------------------------------------------------------
| International | 26.3 | 40.2 | -13.9 | -34.6 | 35.6 |
--------------------------------------------------------------------------------
| Group, total | 464.8 | 455.2 | 9.5 | 2.1 | 455.3 |
--------------------------------------------------------------------------------
| - sold order | 324 | 279 | | | 280 |
| backlog | | | | | |
--------------------------------------------------------------------------------
| - unsold order | 141 | 176 | | | 176 |
| backlog | | | | | |
--------------------------------------------------------------------------------
Earnings trends of the Segments
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Business Premises | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| (EUR million) | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Revenue | 141.1 | 271.2 | -130. | -48.0 | 40.2 | 74.3 | 349.1 |
| | | | 1 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 13.7 | 21.8 | -8.1 | -37.3 | 3.1 | 3.7 | 27.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, | 9.7 | 8.0 | | | 7.7 | 4.9 | 8.0 |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 252.0 | 228.8 | 23.2 | 10.2 | | | 265.7 |
--------------------------------------------------------------------------------
The Business Premises business area comprises SRV Toimitilat Oy's retail,
office, logistics and rock construction operations and property development.
Revenue in Business Premises business area was EUR 141.1 million (EUR 271.2
million). The market in construction of business premises slowed down clearly
compared to the previous year. The decrease in revenue was also due to volume
of around EUR 38 million relating to the extension project of Stockmann not
being recorded in SRV's revenue, and also due to the real estate transaction of
EUR 12,7 million during the period of comparison. Operating profit was EUR 13.7
million (EUR 21.8 million). Order backlog grew to EUR 252.0 million (EUR 228.8
million).
Third-quarter revenue amounted to EUR 40.2 million (EUR 74.3 million) and
operating profit to EUR 3.1 million (EUR 3.7 million).
Among others, the renovation of the office building Hakaniemenranta 6 in
Helsinki for Senate Properties, production premises for Caternet in the Kivikko
district in Vantaa and HTC office buildings in the Keilaniemi district in Espoo
were completed during the review period. The Plantagen garden store was
completed in the business area of Porvoo's King's Gate as well as a retail
centre of 20,000 cubic meters in the northern wing. In the city of Vantaa, an
office and warehouse building for SGN and a logistics centre for Transphere were
completed. In Kerava, the new timber crushing plant for Lassila & Tikanoja was
completed. The main contract for interior construction of the Helsinki City
Service Tunnel, with total volume of 120,000 cubic metres, was also brought to
completion.
The underground car park built and owned by SRV was completed in the Kamppi
district of Helsinki, and was opened for public in May. The operator of the
P-City car park is Europark Finland Oy.
In January, SRV and Mutual Pension Insurance Company Varma signed a contract
concerning the Vierumäki Congress & Resort Hotel project. SRV acts as main
contractor with overall responsibility being in charge of construction and
planning. In addition to 191 hotel rooms, the four-storey hotel building
includes meeting facilities, six restaurants, fitness room, bowling alley with
10 lanes, and a wellness-area. The hotel will be opened in spring 2010.
In January, SRV and the city of Kerava agreed on a contract package concerning
the development of the Kerca logistics area and concluded a contract for a real
estate transaction of four hectares of land and a preliminary contract for an
area of 22 hectares. On the first plot, SRV plans to build a GCC (Grand Cargo
Center) logistics building with about 20,000 square metres of floor space. Kerca
occupies an area of 160 hectares on the Kerava-Vantaa border.
In February, property and contract agreements concerning the Anttila logistics
centre to be built in Kerca were signed. Kesko pension fund bought a plot of
40,000 square metres from the city of Kerava, where a high-bay warehouse of
approximately 19.000 gross square metres for Anttila will be built. The volume
of the building is 300,000 cubic metres. Preconstruction on the plot is
completed and the construction works will be completed in August 2010.
SRV signed a contract with Varma Mutual Pension Insurance Company in June to
build a production and logistics center for Primula bakery in Järvenpää. The
center includes production, logistics, sales and administration premises as well
as a luncheonette, cafeteria and bakery shop. The total floor area of the
project is 13,000 square meters. Production in the premises will start in early
fall 2010.
SRV was selected as project management contractor for the renovation of the
Aurora-house of the The Helsinki Deaconess Institute. SRV is in charge of
rebuilding the old hospital and hotel into supported and assisted accommodation
units as well as of building new facilities in the building.
In September, SRV and insurance companies Tapiola General and Tapiola Life
signed a contract for the construction of Housing Company Helsingin Vanhalinna
close to Itäkeskus in Helsinki. The floor area of the project is 42,000 square
meters, and it includes 309 rental apartments as well as service, restaurant and
retail premises.
During the review period, contracts were also concluded to build a service
tunnel for the University of Helsinki in the heart of Helsinki and an equestrian
center for the Primus riding center in Espoo. Renovation of an office building
for Ilmarinen was started in the Niittykumpu district in Espoo. The preliminary
works for the extension and renovation of Malmi Hospital in Helsinki were
started, as was the construction and renovation of the Mercuria Business College
in Vantaa. The construction of production plant for Lassila & Tikanoja was
commenced in Kerava.
The office building in Hakaniemenranta was selected as the construction project
of the year 2008 of Senate Properties. With this reward Senate Properties wants
to encourage and highlight skilful designers and builders. The recognition is
based on general quality factors and social responsibility as well as solutions
that support the clients and innovations.
After the review period, SRV and The Finnish Rail Administration concluded a
contract for the excavation of the rail tunnels in the Ring Rail Line project.
In the project SRV is in charge of the excavation, rock reinforcement and
compaction of Ruskeasanta station in Vantaa, Ring Rail Line tunnels and three
shafts. Moreover, a project management contract was signed with The Finnish Fair
Corporation for the construction of a 19,000 square meter new building in
Helsinki.
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Housing | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| (EUR million) | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Revenue | 104.2 | 94.5 | 9.7 | 10.3 | 37.9 | 31.4 | 127.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 2.9 | 1.9 | 1.0 | 51.4 | 1.0 | 0.5 | 0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, | 2.7 | 2.0 | | | 2.7 | 1.7 | 0.6 |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 186.5 | 186.3 | 0.2 | 0.1 | | | 154.0 |
--------------------------------------------------------------------------------
The Housing business area comprises housing construction in the Helsinki
Metropolitan Area and the neighbouring municipalities as well as the operations
of the regional subsidiaries. Besides housing, the regional business operations
include commercial, business premises and logistics construction projects.
Revenue in the Housing business area for the review period amounted to EUR 104.2
million (EUR 94.5 million) and operating profit was EUR 2.9 million (EUR 1.9
million). Order backlog was EUR 186.5 million (EUR 186.3). The increase in
operating profit was achieved by the increase in the volume of contracting and
by focusing the housing sales on completed projects and by the executed savings
measures.
Third-quarter revenue amounted to EUR 37.9 million (EUR 31.4 million) and
operating profit to EUR 1.0 million (EUR 0.5 million). The increase in operating
profit was attributable to the revived housing sales and focusing the housing
sales on completed projects as well as to the executed savings measures. The
third-quarter operating profit decreased due to EUR 0.7 million profit cuts in
three already completed projects in SRV Keski-Suomi.
Resources were allocated to contracting and, during the review period, contracts
worth EUR 131.1 million were concluded with external clients. EUR 78.9 million
of the concluded contracts were negotiation contracts, where SRV has acted also
as developer. SRV builds a S-Group's Kodin Terra hardware and home decor
department store and ABC service station for Pirkanmaan Osuuskauppa in Nokia.
The Pakkalanrinne day care centre will be built for lease to the City of Vantaa,
the investor in the project is Ilmarinen Mutual Pension Insurance Company. A
contract was signed with Scan-Auto to build a Scania centre in Jyväskylä which
services large vehicles. Provisional premises for the Cygnaeus school centre in
Jyväskylä and Valintatalo market in Nokia are also being built.
During the review period, 323 (76) housing units were sold to investors under
negotiation contracts. A construction contract was signed with Sato to build two
housing blocks with a total of 74 units on a property previously owned by SRV in
the Vallikallio district in Espoo. In the Ulrika area in the Rekola district in
Vantaa, 50 right-of-occupancy homes are being built for Asuntosäätiö. 40 housing
units are being built for Tampereen YH in Ylöjärvi and 42 units in the Henneri
area in Tampere on a property previously owned by SRV. In Jyväskylä SRV builds a
total of 117 service-accommodation units for Jyväskylän Nuoriso- ja
Palveluasunnot ry. They will be used mainly as elderly care homes.
Contracts worth EUR 52.3 million were won through bidding competition. Most
important of these were a high-rise project of 104 apartments for HOAS
(Foundation for Student Housing in the Helsinki Region) in the Viikki district
of Helsinki and piping renovation of two housing companies in the Haaga district
of Helsinki. Two apartment houses with 75 apartments are being built for the
city of Joensuu. Contracts were signed with the town of Ylöjärvi for a health
center and with the municipality of Tarvasjoki for a well-being centre, Logicity
terminal for Varsinais-Suomen Kaukokiito is being built in the vicinity of Turku
airport.
In developer contacting projects a terraced house with four apartments reached
sales condition in Oulu during the beginning of the review period. The most
significant project under construction, Helsingin Oscar (65 units) was
completed on 10 October.
During the review period, 121 (128) units were sold. At the end of the period 80
(251) units were under construction, of these 79 (232) units were unsold. Number
of completed, unsold units was 161 (140), of which 39 were rented at the end of
the period. During the period 188 (260) developer contracting units were
completed.SRV has several residential projects on prime locations whose planning
has been taken further. Strict criteria have been set for Start-up of new
developer contracting projects, start-ups will be considered depending on the
results of the pre-marketing.
SRV has made start-up decisions concerning two apartment houses (88 apartments)
in the Kartanonkoski district in Vantaa, two apartments buildings (67
apartments) in the vicinity of Martinlaakso train station, a terraced house (7
apartments) in the Haukilahti district in Espoo, an apartment building (28
apartments) in Parkano and an apartment building (14 apartments) in Jyväskylä.
These developer contracting projects worth around EUR 44 million are not
included in the order backlog on 30 September 2009, because the projects had not
reached the required RS-stage.
--------------------------------------------------------------------------------
| Developer | 1-9/ | 1-9/ | change | 7-9/ | 7-9/ | 1-12/ |
| contracting housing | 2009 | 2008 | , | 2009 | 2008 | 2008 |
| production in | | | units | | | |
| Finland | | | | | | |
--------------------------------------------------------------------------------
| Start-ups | 4 | 110 | -106 | 0 | 49 | 110 |
--------------------------------------------------------------------------------
| Sold | 121 | 128 | -7 | 43 | 32 | 141 |
--------------------------------------------------------------------------------
| Completed | 188 | 260 | -72 | 37 | 31 | 260 |
--------------------------------------------------------------------------------
| Completed and unsold | 161 | 140 | 21 | | | 133 |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| Under construction | 80 | 251 | -171 | | | 265 |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| - of which unsold | 79 | 232 | -153 | | | 226 |
--------------------------------------------------------------------------------
1) at the end of the period
During the review period, codetermination negotiations were commenced in SRV
Keski-Suomi in Jyväskylä region due to financial and productional reasons. As a
result of the negotiations SRV dismissed temporarily three salaried employees
and permanently three. Erkki Jaala who was the regional manager in SRV
Keski-Suomi left the company in October.
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| International | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| Operations | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| (EUR million) | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Revenue | 19.6 | 49.8 | -30.3 | -60.8 | 6.2 | 21.0 | 60.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -5.9 | 11.9 | -17.9 | -149. | -1.5 | 10.8 | 9.2 |
| | | | | 6 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, | -30.3 | 24.0 | | | -24.1 | 51.5 | 15.4 |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 26.3 | 40.2 | -13.9 | -34.6 | | | 35.6 |
--------------------------------------------------------------------------------
International Operations comprises the business activities of the SRV
International subgroup in Russia and the Baltic countries.
Revenue in the International business area was EUR 19.6 million (EUR 49.8
million). Operating loss amounted to EUR 5.9 million (a profit of EUR 11.9
million). Revenue and operating profit were affected by the small number of
projects under construction. In addition, operating profit was affected by the
development costs of developer contracting projects and the fixed costs of
business operations. Revenue and operating profit for the comparison period were
increased by the sale of the hotel in Eekaterinburg, where EUR 13.3 million was
recorded in revenue and EUR 12.9 million in operating profit. Order backlog was
EUR 26.3 million (EUR 40.2 million).
Third-quarter revenue amounted to EUR 6.2 million (EUR 21.0 million) and
operating loss EUR 1.5 million (a profit of EUR 10.8 million). Revenue was
affected by the small number of projects under construction and operating
profit. In addition, operating profit was affected by the development costs of
developer contracting projects and the fixed costs of business operations.
During the comparison period, revenue and operating profit were increased by the
above mentioned sale of the hotel.
Russia
The Etmia II office and parking facility project in the heart of Moscow has
reached shell & core completion. Due to the slow-down of demand in the Moscow
office market, SRV has decided to do the fit-out works in the office section
itself. The aim is to complete them by the end of the year. Negotiations with
potential tenants are on the way. SRV's role in the project is to act as the
project management contractor and as co-owner with a 50 per cent stake.
In Moscow area, building permit for was granted for the Mytischi shopping centre
project which has been developed by SRV. Construction of electricity connection
has started. The majority owner of the project is the Finnish real estate
investment company Vicus with a 75 per cent stake. Due to the global financing
situation, negotiations concerning the financing of the project have not been
successful. The site organisation has been temporarily moved to other projects
to wait for the final investment decision. The final investment decisions will
be made after the financing of the project and negotiations with the tenants
have been concluded. SRV owns 25 per cent of the shopping centre project and
has invested EUR 7.0 million in it.
SRV continued the development of the roughly 8.5 hectare land area in St
Petersburg. The plans include the construction of office and retail space, as
well as hotel, restaurant and entertainment premises. Moreover, facilities will
be built for the IBI university. The aim is to conclude the development of the
overall concept in 2009, which would enable starting up the construction of the
first phase during 2010. SRV had invested about EUR 50 million in land and
properties. Further investment in land acquisition by SRV is estimated at EUR
10 million. At the moment, SRV owns 87.5% of the project, but the ownership will
decline to 77.5 per cent when all land-owning arrangements have been completed
according to the cooperation contract.
Phase II of the renovation works of the Pribaltiskaya hotel operated by the
Rezidor Group continued in St Petersburg. Phase II of the renovation of hotel
Pulkovskaya was completed during the period.
The development of the Eurograd logistics area in St Petersburg continued. SRV
has a 49 per cent ownership of the Russian company who possesses a plot of 24.9
hectares located north of St Petersburg, in the close vicinity of the Ring Road.
Over 100,000 square metres of logistics facilities are planned for the site, in
several stages during the next few years. The zoning of the area for logistics
is completed. Site planning has begun and negotiations with potential tenants
for phase I are underway.
Demand for the apartments in the Papula residential area in the city of Vyborg
remained weak during the review period and no new transactions were made. 30 of
the first-phase units had been sold to a Russian company, who was not able to
arrange financing for the transaction. At the end of the period, 31 (31) units
were unsold.
During the review period, SRV concluded the establishment of a real estate fund
together with VTB Capital and Deutsche Bank. The fund will invest mainly in
office, retail and hotel projects as well as in construction of top end
residential projects in Moscow and in St Petersburg. The fund can also invest in
operating completed properties.
SRV's share of the investment commitments in the first phase is EUR 20 million.
VTB Capital and Deutsche Bank are also investors in the fund. Other investors
are pension insurance companies Ilmarinen and Etera. The final target for the
investment commitments of the fund is at least EUR 300 million, which can equal
as much as EUR 1 billion in investment volume.
VTB Capital and Deutsche Bank will act, in a partnership, as sponsor and general
partner of the fund. Their task will be, among others, to identify investments
and to arrange financing for the projects. SRV acts as project management
contractor in the fund. SRV acts in the fund both as investor and project
management contractor. Through the fund, the company expects to receive at least
EUR 200 million worth of construction contracts.
Baltic countries
Volume in the Baltic business operation was low. No new residential projects are
scheduled to be started in the present market situation. In Estonia, 6 (6)
residential units were sold during the period and, all in all, 35 (41) units
were up for sale in already-completed projects at the end of the period. The
number of staff in Estonia was adjusted to the market situation.
On 9 April 2009, SRV and the International School of Latvia signed a contract
agreement concerning the construction of international school in Riga. The
design phase of the project is completed and due to delays in the client's
financing the start-up is postponed to 2010.
SRV Terbelat Sia, a subsidiary of SRV Group Plc has been engaged as claimant in
international arbitration proceedings in Berlin concerning a power plant
construction contract in Latvia with a Latvian customer SIA Juglas Jauda. SRV
suspended the work because of the customer's breach of the contract and
terminated the contract in Autumn 2007. On 28 July 2009, the arbitration
tribunal confirmed SRV's right to terminate the contract and ordered the
defendant to pay SRV approximately EUR 1.4 million for costs and interest. The
enforcement of the arbitration tribunal's decision has to be applied in Latvian
local court, where the customer has also started proceedings based on the same
contract against SRV.
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Other Operations | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| (EUR million) | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Revenue | 6.4 | 8.5 | -2.1 | -24.4 | 2.1 | 2.7 | 11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -3.3 | -3.5 | 0.2 | | -0.7 | -1.0 | -4.9 |
--------------------------------------------------------------------------------
Other Operations comprise mainly the SRV Group Plc and SRV Kalusto Oy
businesses.
The revenue of Other Operations during the review period was EUR 6.4 million
(EUR 8.5 million) and operating loss EUR 3.3 million (loss of EUR 3.5 million).
Decrease in revenue was caused by lower operation volume. Third quarter revenue
amounted to EUR 2.1 million (EUR 2.7 million) and operating loss to EUR 0.7
million (loss of EUR 1.0 million). Decrease in revenue was affected by lower
operating volume. Smaller operating loss resulted from cost savings measures.
Financing and financial position
The net operational cash flow improved and amounted to EUR 6.0 million (a loss
of EUR 55.8 million in January - September 2008). The improvement of cash flow
resulted from the clear decrease in growth of equity and release of other net
current assets during the review period. The Group's equity amounted to EUR
163,3 million (EUR 170.2 million on 30September 2008). The group's inventories
were EUR 304.0 million (EUR 259.0 million), the share of land areas and
plot-owning companies being EUR 153.7 million (EUR 119.2 million). The Group's
invested capital amounted to EUR 356.5 million (EUR 306.6 million).
The Group's financing reserves were EUR 104.8 million at the end of the review
period, of which the Group's cash assets at the end of the review period
amounted to EUR 3.9 million and the committed undrawn financing reserves and
credit facilities amounted to EUR 100.9 million .The Group's net
interest-bearing liabilities were EUR 189.2 million on 30 September 2009 (EUR
127.9 million). Net financing expenses totalled EUR 3.7 million (EUR 5.9
million).
Investments in SRV's developer contracting housing projects in Finland consonant
with the RS-system, including completed, unsold projects, total around EUR 79.3
million. SRV estimates that completion of these projects demands another EUR 4
million. The undrawn housing corporate loans total EUR 1.7 million. Investments
in uncompleted developer contracting business premise projects in Finland amount
to EUR 33 million. To complete the projects another EUR 0.7 million is estimated
to be invested. Investments in international developer contracting projects
amount to EUR 40.3million, of which EUR 1.9 million is in unsold residential
projects in Estonia, EUR 3.9 million in unsold housing project in Vyborg and EUR
35.5 million in Etmia office project and Mytischi shopping centre project.
The equity ratio was 41.0 per cent (45.9%). The change in the equity ratio and
net liabilities was impacted by increase in inventories, in particular. The
return on investment was 4.8 per cent (18.5%) and the return on equity 1.1 per
cent (14.6%).
Investments
The Group's investments totalled EUR 2.7 million (EUR 22.8 million) and they
were mainly related to acquisition of shares of subsidiaries. In the
reference period, EUR 18.2 million of the investments were related to the IBI
project.
Unbuilt land areas, land acquisition commitments and land development agreements
--------------------------------------------------------------------------------
| Land reserve | Business | Housing | International | Total |
| 30.9.2009 | Operations | | Operations | |
--------------------------------------------------------------------------------
| Unbuilt land areas and land acquisition commitments |
--------------------------------------------------------------------------------
| Building rights*, | 193,000 | 269,000 | 859,000 | 1,321,000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| Capital invested | 36 | 67 | 112 | 216 |
| incl. | | | | |
| commitments, EUR | | | | |
| million | | | | |
--------------------------------------------------------------------------------
| Land development | | | | |
| agreements | | | | |
--------------------------------------------------------------------------------
| Building rights*, | 466,000 | 311,000 | 100,000 | 877.000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| * Building rights also include the estimated building rights/construction |
| volume of unzoned land reserves and land areas covered by agreements in |
| projects that are wholly or partly owned by SRV |
--------------------------------------------------------------------------------
In March, the City of Oulu granted SRV the planning reservation for an
approximately 5 hectare land area in the immediate vicinity of Oulu harbour.
SRV aims to develop logistics facilities and business premises in the area
together with the Port of Oulu and companies operating in the area.
Group structure
SRV is Finland's leading project management contractor. The Group builds and
develops commercial and business premises, residential units as well as
infrastructure and logistics projects. Apart from Finland, the company operates
in Russia and the Baltic countries. SRV Group Plc is the Group's parent company,
and it is responsible for the Group's management, treasury, finance and
administrative functions. The Property Development and Building Systems units
support and serve all the Group's business operations.
SRV's business areas are Business Premises, Housing and International as well as
Other Operations. The Business Premises business area comprises the operations
of SRV Toimitilat Oy. Housing comprises the operations of SRV Asunnot Oy and the
regional subsidiaries. The SRV International subgroup carries on international
operations. Other Operations consist primarily of the SRV Group Plc and SRV
Kalusto Oy businesses.
Changes in Group structure
In June 2009, SRV acquired 100 per cent ownership of Pirkanmaan Projektitoimi
Oy. To intensify the business structure and operation, SRV started the process
to merge the company into SRV Asunnot Oy in July 2009. Pirkanmaan Projektitoimi
continues its operation under the business name SRV Pirkanmaa.
Rationalising measures
On 19 January, SRV started negotiations to adjust the number of employees to the
market situation. The codetermination negotiations concerning the Group's
Finnish companies were concluded on 26 March, and as a result SRV will lay-off
60 persons during 2009. In addition to lay-offs, the company agreed with the
Finnish employees that the additional holiday pays will be traded for time off.
Similar process has been started in the Group's companies abroad. Savings of EUR
6 million in 2009 are sought by these and other savings measures.
Personnel
SRV had an average payroll of 783 (865) employees, of whom 551(613) were
white-collar. The parent company had an average staff of 55 (66) white-collar
employees. At the close of the review period, the Group had 747 (904) employees,
of whom 47 (69) were employed by the parent company. An average of 17 per cent
(14.6) of the employees work at subsidiaries and representative offices abroad.
At the end of the review period, SRV had a total of 20(35) trainees working in
the Group's operations in Finland (in summer jobs and in work training as well
as students working on their thesis or diploma).
--------------------------------------------------------------------------------
| Personnel by business area | 30.9.2009 | 30.9.2008 | Share of Group |
| | | | personnel, |
| | | | 30.9.2009, % |
--------------------------------------------------------------------------------
| Business Premises | 278 | 297 | 37,2 |
--------------------------------------------------------------------------------
| Housing | 225 | 296 | 30,1 |
--------------------------------------------------------------------------------
| International | 164 | 212 | 22,0 |
--------------------------------------------------------------------------------
| Other Operations | 80 | 99 | 10,7 |
--------------------------------------------------------------------------------
| Group, total | 747 | 904 | 100,0 |
--------------------------------------------------------------------------------
The share-based incentive plan for 2009 includes about 70 employees and the
reward is based mainly on consolidated and partly on business area performance.
The rewards to be paid for earning period 2009 correspond to the approximate
value of a total maximum of 380 000 SRV Group Plc shares and a sum of money
corresponding to this amount of shares, at the most, for taxes.
Outlook for construction
After quick decline, some signs of recovery can be seen in global economy.
However, the recovery is slow and the situation in the property and construction
market continues to be challenging. The Finnish economy is estimated to decrease
by 4.5 to 7.0 per cent in 2009.
Total number of building permits has further decreased in all types of buildings
except for public buildings. The falling construction input prices have
levelled off. The availability of subcontracting and materials is good.
Unemployment in construction is increasing. Government support measures proceed.
A more positive trend than last year has continued in residential market and
consumer confidence has strengthened as the interest level has remained low.
Also new developer contracting projects have been started as demand has grown.
Poorer trend in employment hits the residential market in the short term.
New start-ups in office construction have decreased clearly and occupancy rates
in offices rise when new premises are completed. Near future outlook for
commercial and logistics construction is somewhat better.
Renovation continues to grow during the ongoing year, and in the long term, the
growth is maintained by the increase in building stock, its ageing as well as
modernizing the technical standard and energy efficiency of the buildings.
Outlook for civil engineering has weakened despite the government support
measures.
The economic situation in the Baltic countries has remained poor. Gross
production in Estonia and Latvia will reduce significantly this year. Property
market has clearly cooled down and construction has slowed down. In the short
term, the economic situation in the Baltic countries continues to be difficult.
Russian economy continues to be challenging. Poor investment trend has
reflected strongly on construction, reducing it significantly. It is still
difficult to get credit. Inflation has slowed down, but it is still on quite
high level, and it is predicted to go below 10 per cent in 2010, at the
earliest.
Risks, risk management and corporate governance
General economic trends and changes in customers' operating environments have an
immediate effect on the construction and property markets. A change in the
general interest level has a direct impact on both SRV's cash flow from
operating activities and financing costs. The general economic situation is weak
and reduces the volume of property investments. Interest rates are low, but
availability of credit from the banks is poor and loan margins have risen to a
high level. The banks' own refinancing has become more expensive, this has
shortened the customers' loan maturities. The international financial crisis
makes it more difficult also for SRV's customers to obtain financing and hampers
the functioning of property markets in all SRV's operating regions and in Russia
in particular. Property values face pressures and the number of property
transactions and start-ups of new projects has decreased due to difficulties in
getting financing. The financial crisis has added SRV's risk to be forced to
tie up capital in projects longer than intended.
SRV's revenue is generated by construction projects, and the company's result
depends on the profitability of individual projects as well as their progress.
The recognition date of the developer contracting projects depends on the
percentage of sold premises in projects. Among other things, availability of
financing for the buyer and occupancy rate have an effect on the selling of the
project. When sales are delayed, the recognition of revenue and operating profit
is delayed correspondingly. Postponed start-ups of developer contracting
projects increase the amount of development expense, which are recorded as
costs. Housing sales have revived somewhat in Finland, and have come to a
practical standstill in Estonia. The slowdown in housing sales will increase
sales and marketing costs and interest expenses in developer contracting housing
production.
Construction is subject to significant cost risks relating to subcontracting and
deliveries, and their control underlines the need for long-term planning. In
poor economic situation, the financing risks relating to subcontractors will
also increase (including labour market disturbances, bankruptcies and grey
economy). SRV's contracting model requires skilled and competent personnel.
Construction projects face also other case-specific risks relating to design and
construction of projects (including new and difficult planning solutions,
thermal insulation and waterproofing, occupational safety). Warranty and
liability obligations related to construction can span up to ten years.
Besides land acquisition risks, property projects face, among other things,
risks relating to outcome of zoning, soil, financing, commercialisation of
projects, partners, geographical location and type of project. In accordance
with its strategy, SRV focuses on developer contracting projects and has
increased its land acquisition in Finland and in Russia, in particular. The
crisis in the international financial market has substantially weakened the
availability of financing in property projects for property development and
investments. It has also put project start-ups on hold.
The financial risks connected with SRV's operations are interest rate, currency,
liquidity and contractual party risks, which are discussed in more detail in the
Notes to the 2008 Financial Statements. Currency risks are divided into
transaction risks and translation risks. Transaction risks are related to
currency-denominated business and financing cash flows. Translation risks
encompass investments made in foreign subsidiaries, the accounting effects of
which are recorded in the translation differences of equity in the consolidated
figures.
Liquidity risks may have an effect on the Group's earnings and cash flow if the
Group is unable to ensure sufficient financing for its operations. SRV maintains
adequate liquidity by means of efficient management of cash flows and solutions
linked to it, such as binding lines of credit that are valid until further
notice. The company has a long-term liquidity arrangement (EUR 100 million),
which shall fall due in 2012. The company's financing agreements contain
customary terms and conditions. The financial terms and conditions of the
agreements concern the equity ratio.
The Group's risk management is carried out in line with the Group's operations
system and control is exercised in accordance with the Group strategy approved
by the Board of Directors of the Group's parent company. SRV also makes every
effort to cover operational risks by means of insurance and contractual terms.
A more detailed account of SRV's risks, risk management and corporate governance
policies has been disclosed in the 2008 Annual Report and Financial Statements.
SRV estimates that no other essential changes have occurred in company's risks.
Corporate governance and resolutions of general meetings
The Annual General Meeting was held on 25 March 2009. The AGM adopted the
financial statements for 2008 and granted release from liability to the members
of the Board of Directors and the president and CEO. A dividend of EUR 0.12 per
share was declared. The date of payment of dividend was set at 3 April 2009. Mr
Ilpo Kokkila was elected chairman of the Board of Directors and Mr Jukka
Hienonen, Mr Lasse Kurkilahti, Mr Hannu Leinonen and Mr Matti Mustaniemi were
elected to seats on the Board. The firm of public accountants Ernst & Young Oy
was elected as the company's auditor. Mikko Rytilahti, authorised public
accountant, will act as the principal auditor.
The Annual General Meeting authorised the Board of Directors to resolve on the
acquisition of the company's own shares (treasury shares). The authorisation is
in force for 18 months from the decision of the Meeting. A maximum of 3,676,846
own shares, or a lower amount that, in addition to the shares already owned by
the company and its subsidiaries, is less than 10 per cent of all shares, may be
acquired on the basis of the authorization. The Annual General Meeting
authorised the Board of Directors to resolve on the transfer of treasury shares
against payment or without consideration. The authorisation is in force for two
years from the decision of the Meeting.
In its organisational meeting on 25 March 2009 the Board of Directors elected
Lasse Kurkilahti vice chairman of the Board, Matti Mustaniemi chairman of the
Audit Committee, Lasse Kurkilahti member of the Audit Committee , Jukka Hienonen
and Hannu Leinonen members of the Nomination and Remuneration Committee and
Ilpo Kokkila chairman of the Nomination and Remuneration Committee.
On 12 August 2009, Eero Heliövaara, President and CEO of SRV resigned from his
post. The Board of Directors appointed Senior Executive Vice President, CFO
Hannu Linnoinen as CEO and started the process to select the new CEO.
On 9 September 2009, Hannu Leinonen, Member of the Board of Directors of SRV
Group Plc requested resignation from the membership in the Board of Directors of
SRV when he was appointed CEO of Destia Oy. A new member for the Board of
Directors will be elected in the next Annual General Meeting.
Shares and shareholders
SRV Group Plc's share capital is EUR 3, 062,520. The share has no nominal value
and the number of shares outstanding is 36,768,468. The company has one class of
shares. SRV had a total of 5,898 shareholders at 30 September 2009.
The closing rate in Nasdaq OMX Helsinki at the end of the review period was EUR
5.64 (EUR 3.47 on 31 December 2008). The highest share price in the review
period was EUR 5.94 and the lowest was EUR 2.75. The change in the all-share
index of the Helsinki Stock Exchange (OMX Helsinki) during the same period was
17.9% positive and the OMX Industrial and Services index 64.9 per cent positive.
At the end of the review period, the company had a market capitalisation of EUR
201.8 million, excluding the Group's own shares. 7.6 million shares were traded
during the review period and the trade volume was EUR 27.9 million.
On 13 May 2009 the Board of Directors of SRV Group Plc decided to use the
authorisation to acquire the company's own shares. The share acquisition started
on 25 May 2009. At the end of the review period, SRV Group Plc's subsidiary SRV
Kalusto Oy had 215,562 of SRV Group Plc's shares. The shares were acquired in
accordance with the conditions of the merger plan of SRV Group Plc and SRV
Henkilöstö Oy. On 30 September 2009, SRV Group Plc and SRV Kalusto Oy had a
total of 980,000 of SRV Group Plc's shares, representing 2.7 per cent of the
total number of the company's shares and combined number of votes. On 10
November2009, the Group had a total of 1,000,000 shares (2.7 per cent of the
total number of the company's shares and combined number of votes).
Eero Heliövaara, SRV Group Plc and Ilpo Kokkila have on 11 August 2009 concluded
a contract stipulating that SRV Group Plc and Ilpo Kokkila commit themselves to
buy or to designate a buyer of the 1,909,483 SRV shares owned by Eero Heliövaara
so that the shares will be sold on 5 January 2010 at the latest, and that the
received price will average EUR 4.45 per share. The agreement leads to
situation in which the shares will be transferred so that the threshold as
intended in the Chapter 2 Section 9 of the Securities Market Act falls below one
twentieth (1/20) of the voting rights and total number of shares.
Financial targets
The Board of Directors has set the aim of SRV in the medium term to achieve
annual average growth of approximately 15 per cent in Group revenue and annual
average growth of 30 per cent in revenue in International Operations. SRV aims
to increase the level of operating profit and, in the medium to long term, to
achieve an operating margin of 8 per cent. Also, the company aims to maintain an
equity ratio of 30 per cent.
The international economic and financing crisis has hindered the growth outlook
for business operations. The realisation of the sales of developer contracting
projects has an essential effect on the development of profitability. The set
financial targets cannot be met during in the present economic situation. The
company endeavours to maintain the profitability by rationalising operations and
cutting costs.
Events after the end of the reporting period
Value of new contracts in the Business Premises business area grew by EUR 42.5
million in October. The Housing business area sold 21 residential units during
October (6 units in October 2008) and the value of new contracts grew by EUR
21.5 million.
Outlook for 2009 reiterated
The international financial crisis has complicated the financing of property
investments and weakened the economic outlook. Start-up decisions and housing
sales, in particular, face uncertainties.
The trend in revenue, operating profit and earnings in 2009 will be affected by
success of the sales of developer contracting sites and the volume of new work
orders. Costs will be cut to improve profitability.
Revenue and operating profit in 2009 are estimated to be below the previous
year's figures, but profit before taxes is estimated to be clearly positive.
Espoo 11 November, 2009
Board of Directors
All forward-looking statements in this review are based on the management's
current expectations and beliefs about future events, and actual results may
differ materially from the expectations and beliefs such statements contain.
For further information, please contact:
Hannu Linnoinen, CEO, CFO, +358 (201) 455 990, +358 (50) 523 5850
Jussi Ollila, SVP, Communications, +358 (201) 455 275, +358 (50) 372 5229
Distribution: Nasdaq OMX Helsinki, principal media, www.srv.fi
Key figures:
--------------------------------------------------------------------------------
| | | IFRS | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | 1-9/ | 1-9/ | 7-9/ | 7-9/ | 1-12/ |
| | | 2009 | 2008 | 2009 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Revenue | EUR | 264.9 | 415.5 | 84.3 | 126.7 | 537.0 |
| | million | | | | | |
--------------------------------------------------------------------------------
| Operating profit | EUR | 7.2 | 32.2 | 1.8 | 14.1 | 32.9 |
| | million | | | | | |
--------------------------------------------------------------------------------
| Operating profit, % of | % | 2.7 | 7.7 | 2.1 | 11.1 | 6.1 |
| revenue | | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EUR | 3.5 | 26.3 | 0.6 | 11.2 | 23.7 |
| | million | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes, % | % | 1.3 | 6.3 | 0.7 | 8.8 | 4.4 |
| of revenue | | | | | | |
--------------------------------------------------------------------------------
| Net profit | EUR | 1.3 | 17.9 | 0.1 | 7.8 | 15.7 |
| attributable to equity | million | | | | | |
| holders of the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity 1) | % | 1.1 | 14.6 | | | 9.4 |
--------------------------------------------------------------------------------
| Return on investment | % | 4.8 | 18.5 | | | 12.9 |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| Invested capital | EUR | 356.5 | 306.6 | | | 339.4 |
| | million | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio | % | 41.0 | 45.9 | | | 41.3 |
--------------------------------------------------------------------------------
| Net interest-bearing | EUR | 189.2 | 127.9 | | | 169.4 |
| debt | million | | | | | |
--------------------------------------------------------------------------------
| Gearing ratio | % | 115.9 | 75.2 | | | 101.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | EUR | 464.8 | 455.2 | | | 455.3 |
| | million | | | | | |
--------------------------------------------------------------------------------
| New agreements | | 275.8 | 283.7 | | | 399.1 |
--------------------------------------------------------------------------------
| Personnel on average | | 783 | 865 | | | 871 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Property, plant and | EUR | 2.7 | 22.8 | 0.4 | 1.2 | 16.8 |
| equipment investments | million | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | % | 1.0 | 5.5 | 0.5 | 0.9 | 3.1 |
| equipment investments, | | | | | | |
| % of revenue | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | EUR | 0.04 | 0.49 | 0.01 | 0.21 | 0.43 |
| share issue adjusted | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, | EUR | 4.46 | 4.61 | - | - | 4.54 |
| share issue adjusted | | | | | | |
--------------------------------------------------------------------------------
| Dividend per share, | EUR | - | - | - | - | 0.12 |
| share issue adjusted | | | | | | |
--------------------------------------------------------------------------------
| Dividend payout ratio | % | - | - | - | - | 27.9 |
--------------------------------------------------------------------------------
| Dividend yield | % | - | - | - | - | 3.5 |
--------------------------------------------------------------------------------
| Price per earnings | | - | - | - | - | 8.1 |
| ratio | | | | | | |
--------------------------------------------------------------------------------
| Share price | | | | - | - | |
| development | | | | | | |
--------------------------------------------------------------------------------
| Share price at the end | EUR | 5.64 | 4.19 | - | - | 3.47 |
| of the period | | | | | | |
--------------------------------------------------------------------------------
| Average share price | EUR | 3.89 | 4.30 | - | - | 5.05 |
--------------------------------------------------------------------------------
| Lowest share price | EUR | 2.75 | 3.90 | - | - | 2.82 |
--------------------------------------------------------------------------------
| Highest share price | EUR | 5.94 | 6.60 | - | - | 6.60 |
--------------------------------------------------------------------------------
| Market capitalisation | EUR | 201.8 | 152.4 | - | - | 125.7 |
| at the end of the | million | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Trading volume | 1,000 | 7 646 | 12 284 | - | - | 13 543 |
--------------------------------------------------------------------------------
| Trading volume | % | 21.2 | 33.6 | - | - | 37.1 |
--------------------------------------------------------------------------------
| Weighted average | 1,000 | 36 | 36 613 | - | - | 36 526 |
| number of shares | | 075 | | | | |
| outstanding | | | | | | |
--------------------------------------------------------------------------------
| Number of shares | 1,000 | 35 | 36 361 | - | - | 36 210 |
| outstanding at the end | | 788 | | | | |
| of the period | | | | | | |
--------------------------------------------------------------------------------
1)In calculating the key ratio only the profit for the period has been
annualised
Calculation of key figures:
--------------------------------------------------------------------------------
| Gearing ratio, % | Net interest-bearing debt x 100 / |
| | Total equity |
--------------------------------------------------------------------------------
| Return on equity, % | Profit before taxes - income taxes) x 100/ |
| | Total equity. average |
--------------------------------------------------------------------------------
| Return on investment, % | (Profit before taxes + interest and other |
| | financial expenses) x 100 / |
| | Invested capital. average |
--------------------------------------------------------------------------------
| Equity ratio, % | Total equity x 100 / |
| | (Total assets - advances received) |
--------------------------------------------------------------------------------
| Invested capital | Total assets - non-interest bearing debt - |
| | deferred tax liabilities - provisions |
--------------------------------------------------------------------------------
| Net interest bearing debt | Interest bearing debt - cash and cash |
| | equivalents |
--------------------------------------------------------------------------------
| Earnings per share, share | Net profit for the period attributable to |
| issue adjusted | equity holders of the parent company / |
| | Weighted average number of shares outstanding |
--------------------------------------------------------------------------------
| Equity per share, share | Shareholders' equity attributable to equity |
| issue adjusted | holders of the parent company / |
| | Number of shares outstanding at the end of |
| | the period. share issue adjusted |
--------------------------------------------------------------------------------
| Price per earnings ratio | Share price at the end of the period / |
| | Earnings per share. share issue adjusted |
--------------------------------------------------------------------------------
| Dividend payout ratio, % | Dividend per share. share issue adjusted x |
| | 100 / |
| | Earnings per share. share issue adjusted |
--------------------------------------------------------------------------------
| Dividend yield, % | Dividend per share. share issue adjusted x |
| | 100 / |
| | Share price at the end of the period. share |
| | issue adjusted |
--------------------------------------------------------------------------------
| Average share price | Number of shares traded in euros during the |
| | period / |
| | Number of shares traded during the period |
--------------------------------------------------------------------------------
| Market capitalisation at the | Number of shares outstanding at the end of |
| end of the period | the period x share price at the end of the |
| | period |
--------------------------------------------------------------------------------
| Trading volume | Number of shares traded during the period and |
| | in relation to the weighted average number of |
| | shares outstanding |
--------------------------------------------------------------------------------
SRV Group Plc Interim Report 1.1. - 30.9.2009: TABLES
Appendixes
1) Condensed consolidated financial statements: income statement, balance sheet,
statement of changes in equity, cash flow statement, commitments and contingent
liabilities, derivative contracts liabilities
2) Quarterly development
3) Segment information
4) Events after the reporting period
1. Group financials 1.1. - 30.9.2009
IFRS standards and operating segments
SRV Group (SRV) adopted International Financial Reporting Standards (IFRS) on 1
January 2006. In preparing interim condensed consolidated financial statement
information, SRV has applied the same accounting principles as in its year-end
financial statements for 2008. The figures in the tables have been rounded which
should be noted when counting the total sums. The interim condensed consolidated
financial statement information has been prepared in accordance with the
accounting policies set out in the IAS 34 standard and the information disclosed
is unaudited.
SRV's reporting segments comprise Business Premises, Housing, International
Operations and Other Operations. The operating segment figures are disclosed in
accordance with IFRS 8, following the accounting principles applied in the
consolidated financial statements.
The following new or revised standards and interpretations are effective from
January 1, 2009:
- IAS 23 Borrowing costs. Borrowing costs attributable to construction projects
starting in 2009 or later shall be capitalized in inventory and recognized in
the income statement as the revenue from the construction project is recognized.
This amendment has an impact both on the Group's financial position and
reporting. During the period 1.1.-31.3.2009 the impact of this amendment to
Group's financial position was minor.
- IAS 1 Presentation of financial statements. Starting from 2009 Group shall
present income statement and the statement of comprehensive income. Statement of
comprehensive income includes changes in equity that relate to transactions with
non-owners.
Estimate of the future impacts of the interpretations:
- IFRIC 15 Agreements for the construction of real estate. The interpretation
specifies when the revenue relating to construction contracts may be recognized
using the Percentage of Completion method and when Completed Contract method
should be used instead. The application of this interpretation will have an
impact primarily on revenue recognition of the housing developer contracting and
it will have an impact both on the Group's financial position and reporting.
Currently Group applies Percentage of Completion method on housing developer
contracting. According to the interpretation the Completed Contract method
should be applied instead. EU enforced the interpretation on 22 July of 2009
and the interpretation shall be applied on the financial year starting January
1, 2010.
--------------------------------------------------------------------------------
| Consolidated | IFRS | IFRS | | | IFRS | IFRS | IFRS |
| income | | | | | | | |
--------------------------------------------------------------------------------
| statement | 1-9/ | 1-9/ | chang | chang | 7-9/ | 7-9/ | 1-12/ |
| (EUR million) | 2009 | 2008 | e, | e,% | 2009 | 2008 | 2008 |
| | | | MEUR | | | | |
--------------------------------------------------------------------------------
| Revenue | 264.9 | 415.5 | -150. | -36.3 | 84.3 | 126.7 | 537.0 |
| | | | 7 | | | | |
--------------------------------------------------------------------------------
| Other operating | 1.6 | 1.0 | 0.6 | 64.9 | 0.5 | 0.4 | 1.4 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Change in | 7.8 | 24.9 | -17.1 | -68.8 | -2.5 | 11.2 | 53.5 |
| inventories of | | | | | | | |
| finished goods | | | | | | | |
| and work in | | | | | | | |
| progress | | | | | | | |
--------------------------------------------------------------------------------
| Use of materials | -224. | -361. | 137.5 | -38.0 | -68.1 | -109.4 | -495.3 |
| and services | 5 | 9 | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -32.2 | -34.2 | 1.9 | -5.6 | -9.0 | -10.4 | -46.3 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -2.9 | -2.1 | -0.8 | 36.1 | -1.1 | -0.7 | -3.2 |
| impairments | | | | | | | |
--------------------------------------------------------------------------------
| Other operating | -7.5 | -11.1 | 3.6 | -32.1 | -2.3 | -3.7 | -14.1 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 7.2 | 32.2 | -25.0 | -77.7 | 1.8 | 14.1 | 32.9 |
--------------------------------------------------------------------------------
| Financial income | 5.5 | 3.3 | 2.2 | 65.4 | 4.2 | 0.4 | 4.2 |
--------------------------------------------------------------------------------
| Financial | -9.2 | -9.2 | 0.0 | -0.5 | -5.5 | -3.3 | -13.4 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Financial income | -3.7 | -5.9 | | | -1.2 | -2.9 | -9.2 |
| and expenses, | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 3.5 | 26.3 | -22.8 | -86.7 | 0.6 | 11.2 | 23.7 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -2.1 | -8.3 | 6.1 | -74.2 | -0.4 | -3.6 | -8.5 |
--------------------------------------------------------------------------------
| Net profit for | 1.4 | 18.0 | -16.7 | -92.4 | 0.1 | 7.6 | 15.3 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 1.3 | 17.9 | | | 0.1 | 7.8 | 15.7 |
| the parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.1 | 0.1 | | | 0.0 | -0.2 | -0.4 |
--------------------------------------------------------------------------------
| Earnings per | 0.04 | 0.49 | | -91.8 | 0.01 | 0.21 | 0.43 |
| share calculated | | | | | | | |
| on the profit | | | | | | | |
| attributable to | | | | | | | |
| equity holders of | | | | | | | |
| the parent | | | | | | | |
| company | | | | | | | |
| (undiluted and | | | | | | | |
| diluted) | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | IFRS | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Statement of comprehensive | 1-9/ | 1-9/ | 7-9/ | 7-9/ | 1-12/ |
| income | 2009 | 2008 | 2009 | 2008 | 2008 |
| (EUR million) | | | | | |
--------------------------------------------------------------------------------
| Net profit for the period | 1.4 | 18.0 | 0.1 | 7.6 | 15.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items recognised directly in | | | | | |
| equity: | | | | | |
--------------------------------------------------------------------------------
| Exchange differences on | 0.0 | -0.1 | 0.0 | -0.1 | -0.1 |
| translating foreign operations | | | | | |
--------------------------------------------------------------------------------
| Available for sale financial | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Net gain (loss) on cash flow | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| hedges | | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income (loss) recognised | 0.0 | -0.1 | 0.0 | 0.0 | -0.1 |
| directly in equity net of tax | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 1.4 | 18.0 | 0.1 | 7.5 | 15.1 |
| the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | |
| attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 1.3 | 17.9 | 0.1 | 7.5 | 15.6 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.1 | 0.1 | 0.0 | 0.0 | -0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 16.9 | 25.9 | -35.0 | 19.0 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 1.7 | 1.7 | 0.0 | 1.7 |
--------------------------------------------------------------------------------
| Other intangible assets | 0.4 | 0.6 | -28.6 | 0.5 |
--------------------------------------------------------------------------------
| Other financial assets | 4.3 | 4.4 | -1.0 | 4.3 |
--------------------------------------------------------------------------------
| Receivables | 13.8 | 5.8 | 136.2 | 6.6 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2.2 | 1.5 | 42.8 | 1.7 |
--------------------------------------------------------------------------------
| Non-current assets, total | 39.3 | 40.0 | -1.8 | 33.8 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 304.0 | 259.0 | 17.3 | 294.8 |
--------------------------------------------------------------------------------
| Trade and other receivables | 69.4 | 87.3 | -20.6 | 86.7 |
--------------------------------------------------------------------------------
| Current tax receivables | 5.8 | 4.4 | 31.3 | 5.1 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3.9 | 8.5 | -54.5 | 3.4 |
--------------------------------------------------------------------------------
| Current assets, total | 383.0 | 359.3 | 6.6 | 390.0 |
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 422.3 | 399.3 | 5.8 | 423.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to | | | | |
| equity holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Share capital | 3.1 | 3.1 | 0.0 | 3.1 |
--------------------------------------------------------------------------------
| Invested free equity fund | 87.3 | 87.3 | 0.0 | 87.3 |
--------------------------------------------------------------------------------
| Translation differences | 0.0 | 0.0 | | -0.1 |
--------------------------------------------------------------------------------
| Fair value reserve | -0.1 | 0.0 | | -0.1 |
--------------------------------------------------------------------------------
| Retained earnings | 69.3 | 77.1 | -10.2 | 74.1 |
--------------------------------------------------------------------------------
| Equity attributable to | 159.6 | 167.5 | -4.7 | 164.3 |
| equity holders of the parent | | | | |
| company, total | | | | |
--------------------------------------------------------------------------------
| Minority interest | 3.8 | 2.7 | 41.6 | 2.3 |
--------------------------------------------------------------------------------
| Equity, total | 163.3 | 170.2 | -4.0 | 166.6 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.3 | 0.2 | 83.0 | 0.3 |
--------------------------------------------------------------------------------
| Provisions | 4.2 | 5.4 | -22.0 | 5.6 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 92.9 | 55.9 | 66.0 | 69.7 |
--------------------------------------------------------------------------------
| Other liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities, | 97.4 | 61.5 | 58.3 | 75.6 |
| total | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 54.7 | 78.2 | -30.1 | 66.8 |
--------------------------------------------------------------------------------
| Current tax payables | 3.3 | 4.9 | -31.7 | 8.0 |
--------------------------------------------------------------------------------
| Provisions | 3.2 | 4.0 | -19.0 | 3.8 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 100.2 | 80.5 | 24.6 | 103.1 |
--------------------------------------------------------------------------------
| Current liabilities, total | 161.5 | 167.5 | -3.6 | 181.6 |
--------------------------------------------------------------------------------
| Liabilities, total | 258.9 | 229.1 | 13.0 | 257.2 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 422.3 | 399.3 | 5.8 | 423.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-9/2009 | 1-9/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | | |
--------------------------------------------------------------------------------
| Net profit for the period | 1.4 | 18.0 | 15.3 |
--------------------------------------------------------------------------------
| Adjustments: | | | |
--------------------------------------------------------------------------------
| Depreciation and impairments | 2.9 | 2.1 | 3.2 |
--------------------------------------------------------------------------------
| Non-cash transactions | 1.5 | -0.6 | -0.5 |
--------------------------------------------------------------------------------
| Financial income and expenses | 3.7 | 5.9 | 9.2 |
--------------------------------------------------------------------------------
| Capital gains on sales of tangible and | 0.0 | 0.0 | 0.0 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Income taxes | 2.1 | 8.3 | 8.5 |
--------------------------------------------------------------------------------
| Adjustments, total | 10.2 | 15.6 | 20.3 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Changes in working capital: | | | |
--------------------------------------------------------------------------------
| Change in loan receivables | -2.7 | -8.5 | -12.6 |
--------------------------------------------------------------------------------
| Change in trade and other receivables | 17.8 | 10.9 | 14.9 |
--------------------------------------------------------------------------------
| Change in inventories | -7.3 | -62.6 | -98.8 |
--------------------------------------------------------------------------------
| Change in trade and other payables | -11.3 | -21.2 | -31.9 |
--------------------------------------------------------------------------------
| Changes in working capital, total | -3.5 | -81.4 | -128.3 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest paid | -10.5 | -7.8 | -13.0 |
--------------------------------------------------------------------------------
| Interest received | 4.4 | 6.2 | 6.7 |
--------------------------------------------------------------------------------
| Dividends received | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income taxes paid | -7.9 | -6.4 | -4.2 |
--------------------------------------------------------------------------------
| | -14.0 | -8.0 | -10.5 |
--------------------------------------------------------------------------------
| Net cash flow from operating | -6.0 | -55.8 | -103.2 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of | -2.0 | -1.3 | -1.3 |
| cash | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | -0.6 | -19.7 | -13.7 |
--------------------------------------------------------------------------------
| Intangible assets | 0.0 | -0.3 | -0.3 |
--------------------------------------------------------------------------------
| Other financial assets | -0.1 | -1.5 | -1.5 |
--------------------------------------------------------------------------------
| Sale of property, plant and equipment | 0.0 | 0.1 | 0.1 |
| and intangible assets | | | |
--------------------------------------------------------------------------------
| Sale of financial assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -2.7 | -22.7 | -16.7 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flows from financing activities | | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from loans | 15.3 | 42.0 | 68.9 |
--------------------------------------------------------------------------------
| Repayments of loans | -20.8 | -9.5 | -10.1 |
--------------------------------------------------------------------------------
| Change in loan receivables | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Change in housing corporation loans | 2.1 | 22.5 | 30.6 |
--------------------------------------------------------------------------------
| Change in credit limits | 18.6 | 16.3 | 18.8 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | -1.7 | -1.4 | -1.9 |
--------------------------------------------------------------------------------
| Dividends paid | -4.4 | -4.4 | -4.4 |
--------------------------------------------------------------------------------
| Net cash from financing activities | 9.3 | 65.6 | 101.8 |
--------------------------------------------------------------------------------
| Net change in cash and cash | 0.5 | -12.9 | -18.0 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 3.4 | 21.4 | 21.4 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end | 3.9 | 8.5 | 3.4 |
| of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| Raw materials and consumables | 0.0 | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Work in progress | 64.5 | 89.6 | -28.0 | 100.8 |
--------------------------------------------------------------------------------
| Land areas and plot-owning | 153.7 | 119.2 | 28.9 | 142.1 |
| companies | | | | |
--------------------------------------------------------------------------------
| Shares in completed housing | 67.4 | 30.2 | 123.4 | 34.0 |
| corporations and real estate | | | | |
| companies | | | | |
--------------------------------------------------------------------------------
| Advance payments | 3.6 | 6.6 | -45.8 | 3.7 |
--------------------------------------------------------------------------------
| Other inventories | 14.8 | 13.4 | 10.7 | 14.2 |
--------------------------------------------------------------------------------
| Inventories, total | 304.0 | 259.0 | 17.3 | 294.8 |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 30.9.2009
--------------------------------------------------------------------------------
| | Equity attributable to | |
| | the equity holders of the parent company | |
--------------------------------------------------------------------------------
| IFRS | Sha | Shar | Inve | Tran | Fai | Retai | Tota | Minor | Total |
| (EUR | re | e | sted | s-la | r | -ned | l | ity | equit |
| million) | cap | prem | free | tion | val | earni | | inter | y |
| | ita | ium | equi | diff | ue | ngs | | est | |
| | l | rese | ty | er-e | res | | | | |
| | | rve | fund | nces | erv | | | | |
| | | | | | e | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0. | 74.1 | 164. | 2.3 | 166.6 |
| 1.1.2009 | | | | | 1 | | 3 | | |
--------------------------------------------------------------------------------
| Translation | | | | 0.0 | 0.0 | | 0.0 | | |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | -0.2 | -0.2 | | |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.2 | -0.2 | | |
| recognised | | | | | | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 1.3 | 1.3 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.3 | 1.3 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.3 | -4.3 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Share based | | | | | | 0.1 | 0.1 | | |
| incentive | | | | | | | | | |
| plan | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -1.7 | -1.7 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | -0. | 69.3 | 159. | 3.8 | 163.3 |
| 30.9.2009 | | | | | 1 | | 6 | | |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 30.9.2008
--------------------------------------------------------------------------------
| | Equity attributable to | |
| | the equity holders of the parent company | |
--------------------------------------------------------------------------------
| IFRS | Sha | Shar | Inve | Tran | Fai | Retai | Tota | Minor | Total |
| (EUR | re | e | sted | s-la | r | -ned | l | ity | equit |
| million) | cap | prem | free | tion | val | earni | | inter | y |
| | ita | ium | equi | diff | ue | ngs | | est | |
| | l | rese | ty | er-e | res | | | | |
| | | rve | fund | nces | erv | | | | |
| | | | | | e | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | 0.0 | 64.7 | 155. | 3.2 | 158.3 |
| 1.1.2008 | | | | | | | 1 | | |
--------------------------------------------------------------------------------
| Translation | | | | 0.0 | | | 0.0 | | |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | 0.0 | | | 0.0 | 0.0 | | |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | |
| recognised | | | | | | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 17.9 | 17.9 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 17.9 | 17.9 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.4 | -4.4 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -1.1 | -1.1 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | 0.0 | 77.1 | 167. | 2.7 | 170.2 |
| 30.9.2008 | | | | | | | 5 | | |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 31.12.2008
--------------------------------------------------------------------------------
| | Equity attributable to | |
| | the equity holders of the parent company | |
--------------------------------------------------------------------------------
| IFRS | Sha | Shar | Inve | Tran | Fai | Retai | Tota | Minor | Total |
| (EUR | re | e | sted | s-la | r | -ned | l | ity | equit |
| million) | cap | prem | free | tion | val | earni | | inter | y |
| | ita | ium | equi | diff | ue | ngs | | est | |
| | l | rese | ty | er-e | res | | | | |
| | | rve | fund | nces | erv | | | | |
| | | | | | e | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | 0.0 | 64.7 | 155. | 3.2 | 158.3 |
| 1.1.2008 | | | | | | | 1 | | |
--------------------------------------------------------------------------------
| Translation | | | | -0.1 | -0. | 0.1 | -0.1 | | |
| differences | | | | | 1 | | | | |
--------------------------------------------------------------------------------
| Other | | | 0.0 | | | 0.0 | 0.0 | | |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | -0.1 | -0. | 0.0 | -0.2 | | |
| recognised | | | | | 1 | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 15.7 | 15.7 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 15.7 | 15.7 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.4 | -4.4 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -1.9 | -1.9 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0. | 74.1 | 164. | 2.3 | 166.6 |
| 31.12.2008 | | | | | 1 | | 3 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments and contingent | IFRS | IFRS | change, | IFRS |
| liabilities | | | | |
--------------------------------------------------------------------------------
| EUR million | 30.9.09 | 30.9.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| Collateral given for own | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Real estate mortgages given | 111.3 | 99.3 | 12.1 | 114.7 |
--------------------------------------------------------------------------------
| Pledges given | 0.0 | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | | | | |
--------------------------------------------------------------------------------
| Guarantees given for liabilities | 0.0 | 0.4 | -100.0 | 0.4 |
| on uncompleted projects | | | | |
--------------------------------------------------------------------------------
| Investment commitments given | 22.1 | 2.3 | 859.2 | 2.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair and nominal | IFRS | IFRS | IFRS |
| values of | 30.9.09 | 30.9.2008 | 31.12.08 |
| derivative | | | |
| instruments | | | |
--------------------------------------------------------------------------------
| (EUR million) | Fair Values | Fair Values | Fair Values |
--------------------------------------------------------------------------------
| | Positi | Negati | Positi | | Positiv | Negativ |
| | ve | ve | ve | | e | e |
--------------------------------------------------------------------------------
| Hedge accounting | | | | | | |
| not applied | | | | | | |
--------------------------------------------------------------------------------
| Foreign exchange | 0.0 | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of | | IFRS | | IFRS | | IFRS |
| derivative | | | | | | |
| instruments | | | | | | |
--------------------------------------------------------------------------------
| | | 30.9.0 | | 30.9.08 | | 31.12.0 |
| | | 9 | | | | 8 |
--------------------------------------------------------------------------------
| Foreign exchange | | 0.0 | | 8.4 | | 0.0 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | | 63.4 | | 14.8 | | 18.8 |
--------------------------------------------------------------------------------
| The fair values of derivative instruments are based on market prices at the |
| end of the reporting period. |
| Open foreign exchange forward contracts are |
| hedging the financing cash flow. |
--------------------------------------------------------------------------------
2. Group and Segment information by quarter
--------------------------------------------------------------------------------
| SRV Group | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | |
--------------------------------------------------------------------------------
| (EUR million) | 7-9/0 | 4-6/ | 1-3/ | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 | |
| | 9 | 09 | 09 | /08 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Revenue | 84.3 | 94.2 | 86.4 | 121.4 | 126.7 | 142.4 | 146.4 | |
--------------------------------------------------------------------------------
| Operating | 1.8 | 3.5 | 1.9 | 0.7 | 14.1 | 9.2 | 8.9 | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | -1.2 | -1.0 | -1.5 | -3.3 | -2.9 | -2.4 | -0.6 | |
| income and | | | | | | | | |
| expenses, | | | | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 0.6 | 2.5 | 0.4 | -2.6 | 11.2 | 6.8 | 8.3 | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 464.8 | 458. | 453. | 455.3 | 455.2 | 521.1 | 451.3 | |
| 1) | | 4 | 9 | | | | | |
--------------------------------------------------------------------------------
| New agreements | 86.2 | 98.2 | 91.3 | 115.4 | 36.7 | 185.0 | 62.0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.01 | 0.03 | 0.00 | -0.06 | 0.21 | 0.12 | 0.16 | |
| share, eur | | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 4.46 | 4.45 | 4.42 | 4.54 | 4.61 | 4.40 | 4.38 | |
| share, eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Share price, | 5.64 | 4.18 | 3.00 | 3.47 | 4.19 | 5.28 | 5.55 | |
| eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, | 41.0 | 40.4 | 40.9 | 41.3 | 45.9 | 44.9 | 52.1 | |
| % 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Net interest | 189.2 | 185. | 170. | 169.4 | 127.9 | 122.4 | 76.1 | |
| bearing debt | | 8 | 6 | | | | | |
| 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Gearing, % 1) | 115.9 | 115. | 105. | 101.7 | 75.2 | 74.8 | 46.3 | |
| | | 6 | 3 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | |
--------------------------------------------------------------------------------
| (EUR million) | 7-9/0 | 4-6/ | 1-3/ | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 | |
| | 9 | 09 | 09 | /08 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Business | 40.2 | 46.1 | 54.8 | 77.9 | 74.3 | 92.2 | 104.8 | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 37.9 | 40.5 | 25.8 | 33.3 | 31.4 | 37.1 | 26.0 | |
--------------------------------------------------------------------------------
| International | 6.2 | 7.6 | 5.8 | 10.2 | 21.0 | 13.1 | 15.7 | |
--------------------------------------------------------------------------------
| Other | 2.1 | 2.1 | 2.2 | 3.0 | 2.7 | 2.8 | 2.9 | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -2.1 | -2.1 | -2.2 | -3.1 | -2.7 | -2.9 | -2.9 | |
--------------------------------------------------------------------------------
| Group, total | 84.3 | 94.2 | 86.4 | 121.4 | 126.7 | 142.4 | 146.4 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 7-9/0 | 4-6/ | 1-3/ | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 | |
| | 9 | 09 | 09 | /08 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Business | 3.1 | 4.6 | 5.9 | 6.0 | 3.7 | 9.9 | 8.2 | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 1.0 | 1.9 | 0.0 | -1.2 | 0.5 | 0.9 | 0.4 | |
--------------------------------------------------------------------------------
| International | -1.5 | -1.9 | -2.5 | -2.7 | 10.8 | -0.1 | 1.2 | |
--------------------------------------------------------------------------------
| Other | -0.7 | -1.0 | -1.6 | -1.4 | -1.0 | -1.6 | -0.9 | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
--------------------------------------------------------------------------------
| Group, total | 1.8 | 3.5 | 1.9 | 0.7 | 14.1 | 9.2 | 8.9 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (%) | 7-9/0 | 4-6/ | 1-3/ | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 | |
| | 9 | 09 | 09 | /08 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Business | 7.7 | 10.0 | 10.8 | 7.8 | 4.9 | 10.8 | 7.8 | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 2.7 | 4.6 | 0.0 | -3.6 | 1.7 | 2.5 | 1.6 | |
--------------------------------------------------------------------------------
| International | -24.1 | -25. | -43. | -26.5 | 51.5 | -0.9 | 7.9 | |
| | | 6 | 3 | | | | | |
--------------------------------------------------------------------------------
| Group, total | 2.1 | 3.7 | 2.2 | 0.6 | 11.1 | 6.4 | 6.1 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | |
--------------------------------------------------------------------------------
| (EUR million) | 30.9. | 30.6 | 31.3 | 31.12 | 30.9. | 30.6. | 31.3. | |
| | 09 | .09 | .09 | .08 | 08 | 08 | 08 | |
--------------------------------------------------------------------------------
| Business | 252.0 | 224. | 252. | 265.7 | 228.8 | 291.1 | 235.2 | |
| Premises | | 3 | 8 | | | | | |
--------------------------------------------------------------------------------
| Housing | 186.5 | 203. | 169. | 154.0 | 186.3 | 186.8 | 182.4 | |
| | | 3 | 6 | | | | | |
--------------------------------------------------------------------------------
| International | 26.3 | 30.7 | 31.5 | 35.6 | 40.2 | 43.2 | 33.7 | |
--------------------------------------------------------------------------------
| Group, total | 464.8 | 458. | 453. | 455.3 | 455.2 | 521.1 | 451.3 | |
| | | 4 | 9 | | | | | |
--------------------------------------------------------------------------------
| - sold order | 324 | 303 | 286 | 280 | 279 | 358 | 281 | |
| backlog | | | | | | | | |
--------------------------------------------------------------------------------
| - unsold order | 141 | 155 | 168 | 176 | 176 | 163 | 170 | |
| backlog | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.9. | 30.6 | 31.3 | 31.12 | 30.9. | 30.6. | 31.3. | |
| | 09 | .09 | .09 | .08 | 08 | 08 | 08 | |
--------------------------------------------------------------------------------
| Business | 61.0 | 77.0 | 69.2 | 63.9 | 63.5 | 51.2 | 43.7 | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 123.4 | 135. | 134. | 138.9 | 115.9 | 105.3 | 97.0 | |
| | | 9 | 9 | | | | | |
--------------------------------------------------------------------------------
| International | 165.8 | 152. | 151. | 138.6 | 143.9 | 145.1 | 115.1 | |
| | | 6 | 0 | | | | | |
--------------------------------------------------------------------------------
| Other and | 6.2 | -12. | -14. | -2.0 | -16.6 | -5.4 | 4.0 | |
| eliminations | | 2 | 0 | | | | | |
--------------------------------------------------------------------------------
| Group, total | 356.5 | 353. | 341. | 339.4 | 306.6 | 296.2 | 259.8 | |
| | | 2 | 1 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Residential | | | | | | | | |
| production | | | | | | | | |
--------------------------------------------------------------------------------
| in Finland | 7-9/0 | 4-6/ | 1-3/ | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 | |
| (units) | 9 | 09 | 09 | /08 | 8 | 8 | 8 | |
--------------------------------------------------------------------------------
| Start-ups | 0 | 0 | 4 | 0 | 49 | 53 | 8 | |
--------------------------------------------------------------------------------
| Sold | 43 | 51 | 27 | 13 | 32 | 63 | 33 | |
--------------------------------------------------------------------------------
| Completed 1) | 37 | 93 | 58 | 0 | 31 | 104 | 125 | |
--------------------------------------------------------------------------------
| Completed and | 161 | 185 | 156 | 133 | 140 | 128 | 105 | |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Under | 80 | 118 | 211 | 265 | 251 | 247 | 298 | |
| construction 1 | | | | | | | | |
--------------------------------------------------------------------------------
| - of which | 79 | 100 | 180 | 226 | 232 | 227 | 260 | |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
1) at the end of the period
3. Segment information
--------------------------------------------------------------------------------
| Assets | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | MEUR | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 90.8 | 114.7 | -23.9 | -20.9 | 116.9 |
--------------------------------------------------------------------------------
| Housing | 152.0 | 138.4 | 13.6 | 9.8 | 158.4 |
--------------------------------------------------------------------------------
| International | 169.7 | 156.0 | 13.7 | 8.8 | 158.6 |
--------------------------------------------------------------------------------
| Other Operations | 191.7 | 168.4 | 23.3 | 13.9 | 185.1 |
--------------------------------------------------------------------------------
| Eliminations | -182.0 | -178.3 | -3.7 | | -195.2 |
--------------------------------------------------------------------------------
| Group, total | 422.3 | 399.3 | 23.0 | 5.8 | 423.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | MEUR | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 64.0 | 78.7 | -14.7 | -18.7 | 81.7 |
--------------------------------------------------------------------------------
| Housing | 135.6 | 125.7 | 9.9 | 7.9 | 141.5 |
--------------------------------------------------------------------------------
| International | 173.5 | 139.8 | 33.6 | 24.0 | 147.2 |
--------------------------------------------------------------------------------
| Other Operations | 70.2 | 65.1 | 5.1 | 7.8 | 65.7 |
--------------------------------------------------------------------------------
| Eliminations | -184.4 | -180.3 | -4.1 | | -178.9 |
--------------------------------------------------------------------------------
| Group, total | 258.9 | 229.1 | 29.8 | 13.0 | 257.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 30.9.09 | 30.9.08 | MEUR | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 61.0 | 63.5 | -2.5 | -3.9 | 63.9 |
--------------------------------------------------------------------------------
| Housing | 123.4 | 115.9 | 7.5 | 6.5 | 138.9 |
--------------------------------------------------------------------------------
| International | 165.8 | 143.9 | 21.9 | 15.3 | 138.6 |
--------------------------------------------------------------------------------
| Other and eliminations | 6.2 | -16.6 | 22.9 | | -2.0 |
--------------------------------------------------------------------------------
| Group, total | 356.5 | 306.6 | 49.9 | 16.3 | 339.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (MEUR) | 30.9.09 | 30.9.08 | MEUR | 31.12.08 |
--------------------------------------------------------------------------------
| Land areas and plot-owning | 153.7 | 119.2 | 34.4 | 142.1 |
| companies | | | | |
--------------------------------------------------------------------------------
| Business Premises | 26.1 | 22.6 | 3.6 | 24.6 |
--------------------------------------------------------------------------------
| Housing | 42.8 | 35.3 | 7.5 | 41.6 |
--------------------------------------------------------------------------------
| International | 84.5 | 61.4 | 23.1 | 76.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Work in progress | 64.5 | 89.6 | -25.1 | 100.8 |
--------------------------------------------------------------------------------
| Business Premises | 7.6 | 23.7 | -16.1 | 30.0 |
--------------------------------------------------------------------------------
| Housing | 44.7 | 46.3 | -1.6 | 57.3 |
--------------------------------------------------------------------------------
| International | 12.2 | 19.6 | -7.4 | 13.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares in completed housing | 67.4 | 30.2 | 37.2 | 34.0 |
| corporations and real estate | | | | |
| companies | | | | |
--------------------------------------------------------------------------------
| Business Premises | 26.9 | 0.0 | 26.9 | 0.0 |
--------------------------------------------------------------------------------
| Housing | 34.6 | 30.1 | 4.5 | 30.6 |
--------------------------------------------------------------------------------
| International | 5.8 | 0.0 | 5.8 | 3.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other inventories | 18.4 | 20.0 | -1.6 | 17.9 |
--------------------------------------------------------------------------------
| Business Premises | 5.1 | 5.2 | -0.1 | 5.0 |
--------------------------------------------------------------------------------
| Housing | 4.6 | 6.6 | -2.0 | 4.6 |
--------------------------------------------------------------------------------
| International | 9.8 | 9.3 | 0.5 | 9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories, total | 304.0 | 259.0 | 44.9 | 294.8 |
--------------------------------------------------------------------------------
| Business Premises | 65.7 | 51.4 | 14.3 | 59.6 |
--------------------------------------------------------------------------------
| Housing | 126.7 | 118.3 | 8.4 | 134.0 |
--------------------------------------------------------------------------------
| International | 112.3 | 90.2 | 22.0 | 102.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business Premises | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-9/200 | 1-9/200 | MEUR | % | 2008 |
| | 9 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 141.1 | 271.2 | -130.1 | -48.0 | 349.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 13.7 | 21.8 | -8.1 | -37.3 | 27.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 0.9 | 0.9 | -0.1 | -7.4 | 0.9 |
--------------------------------------------------------------------------------
| Current assets | 89.9 | 113.8 | -23.9 | -21.0 | 116.0 |
--------------------------------------------------------------------------------
| Total assets | 90.8 | 114.7 | -23.9 | -20.9 | 116.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 11.1 | 1.0 | 10.1 | 970.6 | 1.1 |
--------------------------------------------------------------------------------
| Current liabilities | 52.9 | 77.6 | -24.8 | -31.9 | 80.6 |
--------------------------------------------------------------------------------
| Total liabilities | 64.0 | 78.7 | -14.7 | -18.7 | 81.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end | 61.0 | 63.5 | -2.5 | -3.9 | 63.9 |
| of | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 30.1 | 64.2 | | | 60.8 |
| 1) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 252.0 | 228.8 | 23.2 | 10.2 | 265.7 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-9/200 | 1-9/200 | MEUR | % | 2008 |
| | 9 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 104.2 | 94.5 | 9.7 | 10.3 | 127.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 2.9 | 1.9 | 1.0 | 51.4 | 0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 1.6 | 2.1 | -0.5 | -24.9 | 1.9 |
--------------------------------------------------------------------------------
| Current assets | 150.5 | 136.3 | 14.1 | 10.4 | 156.5 |
--------------------------------------------------------------------------------
| Total assets | 152.0 | 138.4 | 13.6 | 9.8 | 158.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 71.9 | 50.1 | 21.8 | 43.5 | 58.3 |
--------------------------------------------------------------------------------
| Current liabilities | 63.8 | 75.6 | -11.9 | -15.7 | 83.2 |
--------------------------------------------------------------------------------
| Total liabilities | 135.6 | 125.7 | 9.9 | 7.9 | 141.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end | 123.4 | 115.9 | 7.5 | 6.5 | 138.9 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 2.9 | 2.6 | | | 0.7 |
| 1) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 186.5 | 186.3 | 0.2 | 0.1 | 154.0 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| International Operations | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-9/200 | 1-9/200 | MEUR | % | 2008 |
| | 9 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 19.6 | 49.8 | -30.3 | -60.8 | 60.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -5.9 | 11.9 | -17.9 | | 9.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 22.5 | 23.6 | -1.1 | -4.6 | 16.2 |
--------------------------------------------------------------------------------
| Current assets | 147.2 | 132.5 | 14.7 | 11.1 | 142.4 |
--------------------------------------------------------------------------------
| Total assets | 169.7 | 156.0 | 13.7 | 8.8 | 158.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 8.4 | 10.7 | -2.3 | -21.7 | 12.7 |
--------------------------------------------------------------------------------
| Current liabilities | 165.0 | 129.1 | 35.9 | 27.8 | 134.6 |
--------------------------------------------------------------------------------
| Total liabilities | 173.5 | 139.8 | 33.6 | 24.0 | 147.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end | 165.8 | 143.9 | 21.9 | 15.3 | 138.6 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment. % | -0.8 | 16.9 | | | 9.3 |
| 1) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 26.3 | 40.2 | -13.9 | -34.6 | 35.6 |
| period | | | | | |
--------------------------------------------------------------------------------
1)In calculating the key ratio only the profit for the period has been
annualised
4) Events after the end of the reporting period
Value of new contracts in the Business Premises business area grew by EUR 42.5
million in October. The Housing business area sold 21 residential units during
October (6 units in October 2008) and the value of new contracts grew by EUR
21.5 million.
