INTERIM REPORT 1 JANUARY -31 March 2009
SRV GROUP PLC INTERIM REPORT 13 May 2009, 8.30 a.m. EET
Reporting period 1 January 31 March 2009 in brief:
- SRV's revenue was EUR 86.4 million (EUR 146.4 million in January-March 2008)
- Operating profit was EUR 1.9 million (EUR 8.9 million)
- Profit before taxes was EUR 0.4 million (EUR 8.3 million)
- The order backlog at the close of the review period was EUR 453.9 million (EUR
451.3 million)
- The equity ratio was 40.9 per cent (52.1%)
- Earnings per share were EUR 0.00 (EUR 0.16)
- SRV adheres to the previous outlook for 2009
The interim report has been prepared in accordance with IAS 34. The disclosed
information is unaudited.
”The sharp economic slowdown continues. However, in challenging market situation
SRV Approach is effective and, thanks to our open cooperation model, it brings
benefits to our clients when the construction costs sink.
Decline in construction industry continued during the first quarter of the year.
Compared with the first quarter of 2008, the revenue and operating profit of SRV
Group decreased clearly. Competition for new orders remained tight.
Revenue and operating profit for SRV's Business Premises business area declined
compared with the corresponding period last year. Housing sales has picked up
somewhat from the all-time low level previous year, even though it remained on
unsatisfactory level. The recovery in housing sales has continued in April.
Weakening of the Russian economy has put both SRV's and our clients' projects on
hold.
SRV's equity ratio is 40.9 per cent .The group has solid financing position,
because the amount of cash in hand and undrawn financing reserves are more than
EUR 130 million. Good solvency and solid financing position give us possibility
to utilise SRV's innovative project development know-how, when the economic
recovery starts", says Eero Heliövaara, president and CEO of SRV.
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| Group key figures | IFRS | IFRS | | | IFRS | |
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| (EUR million) | 1-3/ | 1-3/ | change | change | 1-12/ | |
| | 2009 | 2008 | , MEUR | ,% | 2008 | |
--------------------------------------------------------------------------------
| Revenue | 86.4 | 146.4 | -60.0 | -41.0 | 537.0 | |
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| Operating profit | 1.9 | 8.9 | -7.0 | -78.9 | 32.9 | |
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| Financial income and | -1.5 | -0.6 | -0.9 | 136.9 | -9.2 | |
| expenses, total | | | | | | |
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| Profit before taxes | 0.4 | 8.3 | -7.9 | -95.1 | 23.7 | |
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| | | | | | | |
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| Order backlog | 453.9 | 451.3 | 2.7 | 0.6 | 455.3 | |
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| | | | | | | |
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| Operating profit, % | 2.2 | 6.1 | | | 6.1 | |
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| Net profit, % | 0.0 | 4.0 | | | 2.8 | |
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| | | | | | | |
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| Equity ratio, % | 40.9 | 52.1 | | | 41.3 | |
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| Net interest bearing | 170.6 | 76.1 | | | 169.4 | |
| debt | | | | | | |
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| Gearing, % | 105.3 | 46.3 | | | 101.7 | |
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| | | | | | | |
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| Return on | 2.9 | 16.7 | | | 12.9 | |
| investment, % 1) | | | | | | |
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| Return on equity, % | 0.0 | 14.6 | | | 9.4 | |
| 1) | | | | | | |
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| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.00 | 0.16 | | | 0.43 | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 4.42 | 4.38 | | | 4.54 | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Weighted average | 36.2 | 36.7 | | | 36.5 | |
| number of shares | | | | | | |
| outstanding | | | | | | |
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In calculating the key ratio only the profit for the period has been annualised
Consolidated revenue was EUR 86.4 million (EUR 146.4 million in January-March
2008). The share of revenue generated in Finland was 93 per cent (89%) whereas 7
per cent (11 %) came from Russia and the Baltic countries. Revenue in the
Business Premises business area was EUR 54.8 million (EUR 104,8 Me). Revenue in
the Housing business area was EUR 25.8 million (EUR 26.0 million). Revenue in
the International business area was EUR 5.8 million (EUR 15.7 million).
The Group's operating profit was EUR 1.9 million (EUR 8.9 million in
January-March 2008). Operating profit margin was 2.2 per cent (6.1%). Operating
profit in the Business Premises business area was EUR 5.9 million (EUR 8.2
million). Operating profit in the Housing business area was EUR 0.0 million (EUR
0.4 million). Operating loss in the International business area was EUR 2.5
million (a profit of EUR 1.2 million).
The Group's profit before taxes was EUR 0.4 million (EUR 8.3 million in
January-March 2008). Net profit for the review period was EUR 0.0 million (EUR
5.9 million). Earnings per share were EUR 0.0 (EUR 0.16). Return on equity was
0.0 per cent (14.6%) and return on investment was 2.9 per cent (16.7%).
The order backlog was EUR 453.9 million on 3 March 2009 (EUR 451.3 million on 31
March 2008).
Key figures for the Segments
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| | IFRS | IFRS | | | IFRS | |
--------------------------------------------------------------------------------
| Revenue | 1-3/ | 1-3/ | change, | change, | 1-12/ | |
| (EUR million) | 2009 | 2008 | MEUR | % | 2008 | |
--------------------------------------------------------------------------------
| Business Premises | 54.8 | 104.8 | -49.9 | -47.7 | 349.1 | |
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| Housing | 25.8 | 26.0 | -0.2 | -0.7 | 127.9 | |
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| International | 5.8 | 15.7 | -10.0 | -63.4 | 60.1 | |
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| Other Operations | 2.2 | 2.9 | -0.7 | -23.7 | 11.5 | |
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| Eliminations | -2.2 | -2.9 | 0.7 | | -11.6 | |
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| Group, total | 86.4 | 146.4 | -60.0 | -41.0 | 537.0 | |
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| | IFRS | IFRS | | | IFRS | |
--------------------------------------------------------------------------------
| Operating profit | 1-3/ | 1-3/ | change, | change, | 1-12/ | |
| (EUR million) | 2009 | 2008 | MEUR | % | 2008 | |
--------------------------------------------------------------------------------
| Business Premises | 5.9 | 8.2 | -2.2 | -27.2 | 27.8 | |
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| Housing | 0.0 | 0.4 | -0.4 | | 0.7 | |
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| International | -2.5 | 1.2 | -3.7 | | 9.2 | |
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| Other Operations | -1.6 | -0.9 | -0.7 | | -4.9 | |
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| Eliminations | 0.0 | 0.0 | 0.0 | | 0.1 | |
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| Group, total | 1.9 | 8.9 | -7.0 | -78.9 | 32.9 | |
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| Operating profit | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (%) | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| Business Premises | 10.8 | 7.8 | 8.0 |
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| Housing | 0.0 | 1.6 | 0.6 |
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| International | -43.3 | 7.9 | 15.4 |
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| Group, total | 2.2 | 6.1 | 6.1 |
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| Order backlog | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 3/2009 | 3/2008 | MEUR | % | 12/2008 |
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| Business Premises | 252.8 | 235.2 | 17.6 | 7.5 | 265.7 |
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| Housing | 169.6 | 182.4 | -12.7 | -7.0 | 154.0 |
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| International | 31.5 | 33.7 | -2.2 | -6.5 | 35.6 |
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| Group, total | 453.9 | 451.3 | 2.7 | 0.6 | 455.3 |
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Earnings trends of the Segments
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| | IFRS | IFRS | | | IFRS |
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| Business Premises | 1-3/ | 1-3/ | change, | change,% | 1-12/ |
| (EUR | 2009 | 2008 | MEUR | | 2008 |
| million) | | | | | |
--------------------------------------------------------------------------------
| Revenue | 54.8 | 104.8 | -49.9 | -47.7 | 349.1 |
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| | | | | | |
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| Operating profit | 5.9 | 8.2 | -2.2 | -27.2 | 27.8 |
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| | | | | | |
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| Order backlog | 252.8 | 235.2 | 17.6 | 7.5 | 265.7 |
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The Business Premises business area comprises SRV Toimitilat Oy's commercial,
business, logistics and rock construction operations and property development.
Revenue in Business Premises business area was EUR 54.8 million (EUR 104.8
million). The decrease in revenue was due to the extension project of Stockmann
being implemented as cost-plus project, and the volume EUR 20 million not being
recorded in SRV's revenue, and also due to the realisation of EUR 9 million
during the period of comparison. Operating profit was EUR 5.9 million (EUR 8.2
million). Operating profit margin improved to 10.8 per cent (7.8%). Order
backlog was EUR 252.8 million (EUR 235.2 million).
Among others, the renovation of the office building Hakaniemenranta 6 for Senate
Properties and HTC office buildings in the Keilaniemi district in Espoo were
completed during the review period. A retail centre of 20,000 cubic meters was
completed in the northern wing of Porvoo's King's Gate. In the city of Vantaa,
an office and warehouse building for SGN and a logistics centre for Transphere
were completed.
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 February, property and contract agreements concerning the Anttila logistics
project to be built in Kerca were signed. Kesko pension fund bought a plot of
40,000 square metres from the city of Kerava, where SRV will build a high-bay
warehouse of approximately 19.000 gross square metres for Anttila. 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 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.
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| | IFRS | IFRS | | | IFRS | |
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| Housing | 1-3/ | 1-3/ | change, | change, | 1-12/ | |
| (EUR million) | 2009 | 2008 | MEUR | % | 2008 | |
--------------------------------------------------------------------------------
| Revenue | 25.8 | 26.0 | -0.2 | -0.7 | 127.9 | |
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| | | | | | | |
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| Operating profit | 0.0 | 0.4 | -0.4 | | 0.7 | |
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| | | | | | | |
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| Order backlog | 169.6 | 182.4 | -12.7 | -7.0 | 154.0 | |
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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 25.8
million (EUR 26.0 million) and operating profit was EUR 0.0 million (0.4
million). The decline in operating profit was attributable to the slowdown in
housing sales. Housing sales revived compared with the last quarter of previous
year. Order backlog was EUR 169.6 million (EUR 182.4 million).
Resources were allocated to contracting and, during the review period contracts
worth EUR 36.9 million were concluded with external clients. Most important
contracts won through bidding competition were in the Helsinki metropolitan area
a high-rise project of 104 apartments for HOAS (Foundation for Student Housing
in the Helsinki Region) in the Viikki district of Helsinki, two apartment houses
for the city of Joensuu, Wellbeing centre for the municipality of Tarvasjoki and
piping renovation of two housing companies in the Haaga district of Helsinki.
During the review period, three negotiation contracts were signed concerning
projects that SRV has developed. Pakkalanrinne day-care centre will be built for
lease to the city of Vantaa, the investor in the project is Ilmarinen. On a
plot that was previously owned by SRV, an apartment building with 40 apartments
will be built for YH Tampere, the project is financed through ARA (The Housing
Finance and Development Centre of Finland). A contract was signed with Scan-Auto
to build a Scania centre in Jyväskylä, which focuses on services of large
vehicles.
During the review period a terraced house with four apartments reached sales
condition in Oulu. Housing sales revived compared with the last quarter of 2008.
During the review period, 27 (33) units were sold. The demand focused still on
completed production. At the end of the period 211 (298) units were under
construction, of these 180 (260) units were unsold. Number of completed, unsold
units was 156 (105), of which 30 were rented at the end of the period. During
the period 58 (125) developer contracting units were completed. Due to the
market situation, extremely strict criteria have been set for start-up of new
housing projects.
The positive trend in housing sales continued in April, when 24 units (19 in
April 2008) were sold. Besides developer contracting housing projects, 40 (44)
units were sold under negotiation contracts during the review period, and
furthermore 92 units in April.
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| Developer contracting | 1-3/ | 1-3/ | change, | 1-12/ | |
| housing production in | 2009 | 2008 | units | 2008 | |
| Finland | | | | | |
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| Start-ups | 4 | 8 | -4 | 110 | |
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| Sold | 27 | 33 | -6 | 141 | |
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| Completed | 58 | 125 | -67 | 260 | |
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| Completed and unsold 1) | 156 | 105 | 51 | 133 | |
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| Under construction 1) | 211 | 298 | -87 | 265 | |
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| - of which unsold 1) | 180 | 260 | -80 | 226 | |
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1) at the end of the period
The most significant projects under construction were Helsingin Oscar (65 units)
and Espoon Vallikallion Helmi (67 units).
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| | IFRS | IFRS | | | IFRS | |
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| International | 1-3/ | 1-3/ | change, | change, | 1-12/ | |
| Operations | 2009 | 2008 | MEUR | % | 2008 | |
| (EUR million) | | | | | | |
--------------------------------------------------------------------------------
| Revenue | 5.8 | 15.7 | -10.0 | -63.4 | 60.1 | |
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| | | | | | | |
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| Operating profit | -2.5 | 1.2 | -3.7 | | 9.2 | |
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| | | | | | | |
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| Order backlog | 31.5 | 33.7 | -2.2 | -6.5 | 35.6 | |
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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 5.8 million (EUR 15.7
million). Decline in revenue was affected by the small number of projects under
construction. Operating loss was EUR 2.5 million (profit of EUR 1.2 million).
Besides small number of projects under construction, decline in operating profit
was affected by the development costs of developer projects and fixed costs of
business operation. Order backlog was EUR 31.5 million (EUR 33.7 million).
Russia
Phase II of the renovation works of the Pulkovskaya and Pribaltiskaya hotels
operated by the Rezidor Group continued in St Petersburg.
The commissioning process started in the Etmia II office and parking facility in
the heart of Moscow. Negotiations with potential tenants are on the way, and
the interior works will start in early summer. SRV's role in the project is to
act as the project management contractor and as co-owner with a 50 per cent
stake. SRV's objective is to sell the project to investors in 2009.
Construction of the Papula residential area in the city of Vyborg continued. In
the first phase, 38 units are to be built. Approval by the authorities is in its
final stage and handing over to the tenants will start during the ongoing
period. All of the first-phase units have been sold. The sale of 30 units,
valued at EUR 4.6 million, called for finalisation of the buyer's financing.
The buyer has not been able to arrange financing, and cancellation of the
transaction has been initiated.
The development of the Eurograd logistics area in St Petersburg continued. SRV
has a 40 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
was completed and site planning has begun. Negotiations with potential tenants
for phase I are underway.
In Moscow area, design, preparations for the construction and the search for
tenants continued in the Mytischi shopping centre project which has been
developed by SRV. The majority owner of the project is the Finnish real estate
investment company Vicus with a 75 per cent stake. Negotiations concerning the
financing of the project are underway. 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 6.8 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 as of 31 March 2009. Further investment in the project by SRV is
estimated at EUR 10 million. It is further estimated that SRV's ownership will
total 77.5 per cent of the project when IBI Invest has acquired all the land
areas included in the cooperation contract.
During the period, SRV continued negotiations with a Russian banking partner
with a view to developing property fund cooperation, which would focus on
developing commercial and business premises projects and financing construction
in Russia. The investors would be SRV together with a group of international
investors as well as a local partner, who would also administer the fund. Should
the plan be carried out, SRV intends to make a fund investment of around EUR 20
million.
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, 0 (6)
residential units were sold during the period and, all in all, 41 (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.
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| | IFRS | IFRS | | | IFRS | |
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| Other Operations | 1-3/ | 1-3/ | change, | change, | 1-12/ | |
| (EUR million) | 2009 | 2008 | MEUR | % | 2008 | |
--------------------------------------------------------------------------------
| Revenue | 2.2 | 2.9 | -0.7 | -23.7 | 11.5 | |
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| | | | | | | |
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| Operating profit | -1.6 | -0.9 | -0.7 | | -4.9 | |
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Other Operations comprise mainly the SRV Group Plc and SRV Kalusto Oy
businesses.
The revenue of Other Operations during the review period was EUR 2.2 million
(EUR 2.9 million) and operating loss EUR 1.6 million (loss of EUR 0.9 million).
Decrease in revenue and operating profit was caused by lower operation volume
Financing and financial position
The Group's equity amounted to EUR 162.0 million (EUR 164.2 million on 31 March
2008) and the group's inventories were EUR 302.8 million (EUR 217.0 million),
the share of land areas and plot-owning companies being EUR 144.2 million (EUR
93.1 million). The Group's invested capital amounted to EUR 341.1 million (EUR
259.8 million).
The Group's financing reserves were EUR 136.8 million (EUR 124.8 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 8.6 million (EUR 19.6 million) and the committed
undrawn financing reserves amounted to EUR 128.2 million (EUR 105.2 million).The
Group's net interest-bearing liabilities were EUR 170.6 million on 31 March 2009
(EUR 76.1 million). Net financing expenses totalled EUR 1.5 million (EUR 0.6
million).
Investments in SRV's developer contracting projects, including completed, unsold
projects, total around EUR 92 million in housing production in Finland. SRV
estimates that completion of these projects demands another EUR 12 million,
which is financed mainly using the undrawn housing corporate loans worth EUR 12
million. Investments in uncompleted developer contracting business premise
projects in Finland amount to EUR 32 million. To complete the projects another
EUR 7 million is estimated to be invested. Investments in international
developer contracting projects amount to EUR 39 million, of which EUR 3.3
million is in unsold residential projects in Estonia, EUR 4 million in housing
project under construction in Vyborg and around EUR 32 million in Etmia II
office project and Mytischi shopping centre project.
The equity ratio was 40.9 per cent (52.1%). The change in the equity ratio and
net liabilities was impacted by land investments and other increase in
inventories, in particular. The return on investment was 2.9 per cent (16.7%)
and the return on equity 0.0 per cent (14.6%).
Investments
The Group's investments totalled EUR 0.1 million (EUR 0.7 million) and they were
mainly investments in machinery and equipment.
Unbuilt land areas, land acquisition commitments and land development agreements
--------------------------------------------------------------------------------
| Land reserve | Business | Housing | International | Total |
| 31.3.2009 | Operations | | Operations | |
--------------------------------------------------------------------------------
| Unbuilt land areas and land acquisition commitments |
--------------------------------------------------------------------------------
| Building rights*, | 238 000 | 271 000 | 859 000 | 1 368 000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| Capital invested | 45 | 60 | 105 | 211 |
| incl. | | | | |
| commitments, EUR | | | | |
| million | | | | |
--------------------------------------------------------------------------------
| Land development | | | | |
| agreements | | | | |
--------------------------------------------------------------------------------
| Building rights*, | 481 000 | 217 000 | 100 000 | 798 000 |
| m2 | | | | |
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| * 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 |
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In March, the City of Oulu granted SRV the planning reservation for an
approximately 5.5 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 Viitoset Oy. Housing comprises the operations of SRV Westerlund 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
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 out.
Similar process has been started in the Group's companies abroad. Savings of EUR
6 million in 2009 is sought by these and other savings measures.
Personnel
SRV had an average payroll of 815 (779) employees, of whom 579 (575) were
white-collar. The parent company had an average staff of 62 (61) white-collar
employees. At the close of the review period, the Group had 784 (795) employees,
of whom 58 (63) were employed by the parent company. An average of 17 per cent
(11) of the employees work at subsidiaries and representative offices abroad.
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| Personnel by business area | 31.3.2009 | 31.3.2008 | Share of Group |
| | | | personnel, |
| | | | 31.3.2009, % |
--------------------------------------------------------------------------------
| Business Premises | 287 | 299 | 36.6 |
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| Housing | 233 | 277 | 29.7 |
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| International | 175 | 127 | 22.3 |
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| Other Operations | 89 | 92 | 11.4 |
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| Group, total | 784 | 795 | 100.0 |
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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 equal amount of
money, at the most, for taxes.
Outlook for construction
The problems which started from financing markets weaken the outlook for
construction and property market. The Finnish economy is estimated to shrink by
4 to 6 per cent in 2009.
The total number of building permits has further decreased across the board,
except for public construction. Construction input prices have begun to fall.
The availability of subcontracting and materials has improved.
The housing market has somewhat recovered from the standstill last autumn, but
sale volume is still low. The number of residential start-ups decreased further
in early 2009, and the lull in the residential market continues into 2010.
Construction of commercial and business premises is still on a high level, but
will decline towards the end of the year 2009. Vacancy rates in office premises
will increase due to the completion of new premises during the ongoing year.
Construction of logistics facilities is still brisk near the main thoroughfares,
in particular.
Growth in renovation continues. Outlook for civil engineering has weakened.
Government support measures will have a positive impact on both renovation and
civil engineering.
Economic growth in the Baltic countries has deteriorated quickly. 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 is extremely challenging.
Russian economic growth will further decelerate rapidly. The financial crisis
has made it more difficult to get loans reducing construction investments
significantly, also.
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 has
deteriorated considerably and reduces the volume of property investments.
Interest rates have fallen sharply, but availability of credit from the banks
has weakened and loan margins have risen clearly. The international financial
crisis makes it more difficult also for SRV's customers to obtain financing and
hampers the functioning of property markets. Property values face pressures and
the number of property transactions and start-ups of new projects is decreased
due to difficulties in getting financing. The financial crisis adds 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 slowed down sharply in Finland, and has 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. SRV's contracting model requires skilled and competent
personnel. Warranty and liability obligations related to construction can span
up to ten years. Currently the construction costs are going down and
availability of resources is improving.
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. 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.
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 5,801 shareholders at 31 March 2009. SRV did not
receive any flagging notifications during the review period.
The closing rate in Nasdaq OMX Helsinki at the end of the review period was EUR
3.00 (EUR 3.47 on 31 December 2008). The highest share price in the review
period was EUR 4.79 and the lowest was EUR 2.76. The change in the all-share
index of the Helsinki Stock Exchange (OMX Helsinki) during the same period was
14.8% negative and the OMX Industrial and Services index 3.8 per cent negative.
At the end of the review period, the company had a market capitalisation of EUR
108.6 million, excluding the Group's own shares. 2.0 million shares were traded
during the review period and the trade volume was EUR 7.1 million.
At the end of the review period, SRV Group Plc's subsidiary SRV Kalusto Oy had
163,305 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 31
March 2009, SRV Group Plc and SRV Kalusto Oy had a total of 571,064 of SRV Group
Plc's shares, representing 1.6 per cent of the total number of the company's
shares and combined number of votes. On 13 May 2009, the Group had a total of
584,128 shares (1.6 per cent of the total number of the company's shares and
combined number of votes).
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.
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 13 May, 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:
Eero Heliövaara, president and CEO, tel. +358 (0)20 1455 202
Hannu Linnoinen, 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 | |
--------------------------------------------------------------------------------
| | | 1-3/ | 1-3/ | 1-12/ | |
| | | 2009 | 2008 | 2008 | |
--------------------------------------------------------------------------------
| Revenue | EUR | 86.4 | 146.4 | 537.0 | |
| | million | | | | |
--------------------------------------------------------------------------------
| Operating profit | EUR | 1.9 | 8.9 | 32.9 | |
| | million | | | | |
--------------------------------------------------------------------------------
| Operating profit, % of | % | 2.2 | 6.1 | 6.1 | |
| revenue | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EUR | 0.4 | 8.3 | 23.7 | |
| | million | | | | |
--------------------------------------------------------------------------------
| Profit before taxes, % of | % | 0.5 | 5.7 | 4.4 | |
| revenue | | | | | |
--------------------------------------------------------------------------------
| Net profit attributable to | EUR | 0.1 | 5.8 | 15.7 | |
| equity holders of the | million | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity 1) | % | 0.0 | 14.6 | 9.4 | |
--------------------------------------------------------------------------------
| Return on investment 1) | % | 2.9 | 16.7 | 12.9 | |
--------------------------------------------------------------------------------
| Invested capital | EUR | 341.1 | 259.8 | 339.4 | |
| | million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio | % | 40.9 | 52.1 | 41.3 | |
--------------------------------------------------------------------------------
| Net interest-bearing debt | EUR | 170.6 | 76.1 | 169.4 | |
| | million | | | | |
--------------------------------------------------------------------------------
| Gearing ratio | % | 105.3 | 46.3 | 101.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | EUR | 453.9 | 451.3 | 455.3 | |
| | million | | | | |
--------------------------------------------------------------------------------
| Personnel on average | | 815 | 779 | 871 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Property, plant and | EUR | 0.1 | 0.7 | 16.8 | |
| equipment investments | million | | | | |
--------------------------------------------------------------------------------
| Property, plant and | % | 0.1 | 0.5 | 3.1 | |
| equipment investments, % | | | | | |
| of revenue | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, share | EUR | 0.00 | 0.16 | 0.43 | |
| issue adjusted | | | | | |
--------------------------------------------------------------------------------
| Equity per share, share | EUR | 4.42 | 4.38 | 4.54 | |
| issue adjusted | | | | | |
--------------------------------------------------------------------------------
| Dividend per share, share | EUR | - | - | 0.12 | |
| issue adjusted | | | | | |
--------------------------------------------------------------------------------
| Dividend payout ratio | % | - | - | 27.9 | |
--------------------------------------------------------------------------------
| Dividend yield | % | - | - | 3.5 | |
--------------------------------------------------------------------------------
| Price per earnings ratio | | - | - | 8.1 | |
--------------------------------------------------------------------------------
| Share price development | | | | | |
--------------------------------------------------------------------------------
| Share price at the end of | EUR | 3.00 | 5.55 | 3.47 | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Average share price | EUR | 3.47 | 5.55 | 5.05 | |
--------------------------------------------------------------------------------
| Lowest share price | EUR | 2.76 | 4.67 | 2.82 | |
--------------------------------------------------------------------------------
| Highest share price | EUR | 4.79 | 6.60 | 6.60 | |
--------------------------------------------------------------------------------
| Market capitalisation at | EUR | 108.6 | 203.7 | 125.7 | |
| the end of the period | million | | | | |
--------------------------------------------------------------------------------
| Trading volume | 1,000 | 2 050 | 5 078 | 13 543 | |
--------------------------------------------------------------------------------
| Trading volume | % | 5.7 | 13.8 | 37.1 | |
--------------------------------------------------------------------------------
| Weighted average number of | 1,000 | 36 202 | 36 718 | 36 526 | |
| shares outstanding | | | | | |
--------------------------------------------------------------------------------
| Number of shares | 1,000 | 36 197 | 36 697 | 36 210 | |
| outstanding at the end of | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
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. - 31.3.2009: 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) Outlook after the reporting period
1. Group financials 1.1. - 31.3.2009
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. Currently the estimate is that EU will enforce the
interpretation during the second quarter of 2009 and that the interpretation
shall be applied on the financial year starting January 1, 2010.
--------------------------------------------------------------------------------
| Consolidated income | IFRS | IFRS | | | IFRS | |
--------------------------------------------------------------------------------
| statement | 1-3/ | 1-3/ | change | change | 1-12/ | |
| (EUR million) | 2009 | 2008 | , MEUR | ,% | 2008 | |
--------------------------------------------------------------------------------
| Revenue | 86.4 | 146.4 | -60.0 | -41.0 | 537.0 | |
--------------------------------------------------------------------------------
| Other operating | 0.5 | 0.4 | 0.1 | 28.4 | 1.4 | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Change in | 7.6 | 1.4 | 6.2 | 444.4 | 53.5 | |
| inventories of | | | | | | |
| finished goods and | | | | | | |
| work in progress | | | | | | |
--------------------------------------------------------------------------------
| Use of materials and | -77.2 | -124.0 | 46.8 | -37.7 | -495.3 | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -11.6 | -11.3 | -0.3 | 2.7 | -46.3 | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -0.9 | -0.6 | -0.3 | 52.0 | -3.2 | |
| impairments | | | | | | |
--------------------------------------------------------------------------------
| Other operating | -2.9 | -3.4 | 0.5 | -15.4 | -14.1 | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1.9 | 8.9 | -7.0 | -78.9 | 32.9 | |
--------------------------------------------------------------------------------
| Financial income | 0.7 | 1.2 | -0.5 | -42.2 | 4.2 | |
--------------------------------------------------------------------------------
| Financial expenses | -2.2 | -1.8 | -0.4 | 19.6 | -13.4 | |
--------------------------------------------------------------------------------
| Financial income and | -1.5 | -0.6 | -0.9 | 136.9 | -9.2 | |
| expenses, total | | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 0.4 | 8.3 | -7.9 | -95.1 | 23.7 | |
--------------------------------------------------------------------------------
| Income taxes | -0.4 | -2.4 | 2.0 | -83.0 | -8.5 | |
--------------------------------------------------------------------------------
| Net profit for the | 0.0 | 5.9 | -5.9 | -100.0 | 15.3 | |
| period | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Attributable to | | | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 0.1 | 5.8 | | | 15.7 | |
| the parent company | | | | | | |
--------------------------------------------------------------------------------
| Minority interest | -0.1 | 0.1 | | | -0.4 | |
--------------------------------------------------------------------------------
| Earnings per share | 0.00 | 0.16 | | -100.0 | 0.43 | |
| calculated on the | | | | | | |
| profit attributable | | | | | | |
| to equity holders of | | | | | | |
| the parent company | | | | | | |
| (undiluted and | | | | | | |
| diluted) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Statement of comprehensive income | 1-3/ | 1-3/ | 1-12/ |
| (milj. eur) | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Net profit for the period | 0.0 | 5.9 | 15.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items recognised directly in equity: | | | |
--------------------------------------------------------------------------------
| Exchange differences on translating foreign | 0.0 | 0.0 | -0.1 |
| operations | | | |
--------------------------------------------------------------------------------
| Available for sale financial assets | -0.1 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Net gain (loss) on cash flow hedges | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Deferred tax | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income (loss) recognised directly in equity | -0.1 | 0.0 | -0.1 |
| net of tax | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the period | -0.1 | 5.9 | 15.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 0.0 | 5.8 | 15.6 |
--------------------------------------------------------------------------------
| Minority interest | -0.1 | 0.1 | -0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.09 | 31.3.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 18.3 | 8.1 | 125.8 | 19.0 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 1.7 | 0.7 | 138.9 | 1.7 |
--------------------------------------------------------------------------------
| Other intangible assets | 0.5 | 0.7 | -27.5 | 0.5 |
--------------------------------------------------------------------------------
| Other financial assets | 4.3 | 2.9 | 45.6 | 4.3 |
--------------------------------------------------------------------------------
| Receivables | 7.3 | 11.6 | -37.1 | 6.6 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1.6 | 1.5 | 7.9 | 1.7 |
--------------------------------------------------------------------------------
| Non-current assets, total | 33.7 | 25.5 | 31.9 | 33.8 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 302.8 | 217.0 | 39.5 | 294.8 |
--------------------------------------------------------------------------------
| Trade and other receivables | 61.9 | 78.7 | -21.4 | 86.7 |
--------------------------------------------------------------------------------
| Current tax receivables | 5.7 | 4.5 | 27.7 | 5.1 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 8.6 | 19.6 | -56.3 | 3.4 |
--------------------------------------------------------------------------------
| Current assets, total | 378.9 | 319.8 | 18.5 | 390.0 |
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 412.6 | 345.3 | 19.5 | 423.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.09 | 31.3.08 | % | 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 | 69.7 | 70.4 | -1.1 | 74.1 |
--------------------------------------------------------------------------------
| Equity attributable to | 159.9 | 160.8 | -0.5 | 164.3 |
| equity holders of the parent | | | | |
| company, total | | | | |
--------------------------------------------------------------------------------
| Minority interest | 2.0 | 3.3 | -38.7 | 2.3 |
--------------------------------------------------------------------------------
| Equity, total | 162.0 | 164.2 | -1.3 | 166.6 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.2 | 0.4 | -46.5 | 0.3 |
--------------------------------------------------------------------------------
| Provisions | 4.9 | 6.1 | -19.6 | 5.6 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 81.5 | 46.7 | 74.3 | 69.7 |
--------------------------------------------------------------------------------
| Other liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities, | 86.6 | 53.3 | 62.6 | 75.6 |
| total | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 53.8 | 71.2 | -24.5 | 66.8 |
--------------------------------------------------------------------------------
| Current tax payables | 8.7 | 3.5 | 147.8 | 8.0 |
--------------------------------------------------------------------------------
| Provisions | 3.9 | 4.3 | -9.0 | 3.8 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 97.7 | 48.9 | 99.7 | 103.1 |
--------------------------------------------------------------------------------
| Current liabilities, total | 164.0 | 127.9 | 28.2 | 181.6 |
--------------------------------------------------------------------------------
| Liabilities, total | 250.6 | 181.2 | 38.3 | 257.2 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 412.6 | 345.3 | 19.5 | 423.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | | |
--------------------------------------------------------------------------------
| Net profit for the period | 0.0 | 5.9 | 15.3 |
--------------------------------------------------------------------------------
| Adjustments: | | | |
--------------------------------------------------------------------------------
| Depreciation and impairments | 0.9 | 0.6 | 3.2 |
--------------------------------------------------------------------------------
| Non-cash transactions | -0.9 | 0.0 | -0.5 |
--------------------------------------------------------------------------------
| Financial income and expenses | 1.5 | 0.6 | 9.2 |
--------------------------------------------------------------------------------
| Capital gains on sales of tangible and | 0.0 | 0.0 | 0.0 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Income taxes | 0.4 | 2.4 | 8.5 |
--------------------------------------------------------------------------------
| | 1.9 | 3.6 | 20.3 |
--------------------------------------------------------------------------------
| Adjustments, total | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Changes in working capital: | | | |
--------------------------------------------------------------------------------
| Change in loan receivables | -0,9 | -10.3 | -12.6 |
--------------------------------------------------------------------------------
| Change in trade and other receivables | 25,3 | 15.8 | 14.9 |
--------------------------------------------------------------------------------
| Change in inventories | -7,8 | -20.2 | -98.8 |
--------------------------------------------------------------------------------
| Change in trade and other payables | -15,5 | -26.1 | -31.9 |
--------------------------------------------------------------------------------
| Changes in working capital, total | 1,1 | -40.7 | -128.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest paid | -4,1 | -2.1 | -13.0 |
--------------------------------------------------------------------------------
| Interest received | 0,5 | 2.8 | 6.7 |
--------------------------------------------------------------------------------
| Dividends received | 0,0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income taxes paid | -0,3 | -1.7 | -4.2 |
--------------------------------------------------------------------------------
| | -3,9 | -1.0 | -10.5 |
--------------------------------------------------------------------------------
| Net cash flow from operating | -0,9 | -32.2 | -103.2 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of | 0,0 | 0.0 | -1.3 |
| cash | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | -0,1 | -0.6 | -13.7 |
--------------------------------------------------------------------------------
| Intangible assets | 0,0 | -0.2 | -0.3 |
--------------------------------------------------------------------------------
| Other financial assets | 0,0 | 0.0 | -1.5 |
--------------------------------------------------------------------------------
| Sale of property, plant and equipment | 0,0 | 0.0 | 0.1 |
| and intangible assets | | | |
--------------------------------------------------------------------------------
| Sale of financial assets | 0,0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -0,1 | -0.7 | -16.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing activities | | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 0,0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from loans | 14,1 | 17.8 | 68.9 |
--------------------------------------------------------------------------------
| Repayments of loans | -0,1 | -9.2 | -10.1 |
--------------------------------------------------------------------------------
| Change in loan receivables | 0,0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Change in housing corporation loans | 4,4 | 12.9 | 30.6 |
--------------------------------------------------------------------------------
| Change in credit limits | -12,2 | 9.5 | 18.8 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | 0,0 | -0.1 | -1.9 |
--------------------------------------------------------------------------------
| Dividends paid | 0,0 | 0.0 | -4.4 |
--------------------------------------------------------------------------------
| Net cash from financing activities | 6,2 | 31.1 | 101.8 |
--------------------------------------------------------------------------------
| Net change in cash and cash | 5,2 | -1.8 | -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 | 8,6 | 19.6 | 3.4 |
| of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.09 | 31.3.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| Raw materials and consumables | 0.0 | 0.0 | -79.9 | 0.0 |
--------------------------------------------------------------------------------
| Work in progress | 103.1 | 78.7 | 31.1 | 100.8 |
--------------------------------------------------------------------------------
| Land areas and plot-owning | 144.2 | 93.1 | 54.9 | 142.1 |
| companies | | | | |
--------------------------------------------------------------------------------
| Shares in completed housing | 37.6 | 33.0 | 13.9 | 34.0 |
| corporations and real estate | | | | |
| companies | | | | |
--------------------------------------------------------------------------------
| Advance payments | 3.5 | 6.5 | -46.6 | 3.7 |
--------------------------------------------------------------------------------
| Other inventories | 14.2 | 5.6 | 152.9 | 14.2 |
--------------------------------------------------------------------------------
| Inventories, total | 302.6 | 217.0 | 39.5 | 294.8 |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 31.3.2009
--------------------------------------------------------------------------------
| | 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 | | | | | | 0.1 | 0.1 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.3 | -4.3 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Share based | | | | | | 0.0 | 0.0 | | |
| incentive | | | | | | | | | |
| plan | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | 0.0 | 0.0 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | -0. | 69.7 | 159. | 2.0 | 162.0 |
| 31.3.2009 | | | | | 1 | | 9 | | |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 31.3.2008
--------------------------------------------------------------------------------
| | 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 | | 0.0 | | |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | 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 | | | | | | 5.8 | 5.8 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 5.8 | 5.8 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | 0.0 | 0.0 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -0.1 | -0.1 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | 0.0 | 70.4 | 160. | 3.3 | 164.2 |
| 31.3.2008 | | | | | | | 8 | | |
--------------------------------------------------------------------------------
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 | 31.3.09 | 31.3.08 | % | 31.12.08 |
--------------------------------------------------------------------------------
| Collateral given for own | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Real estate mortgages given | 125.7 | 90.4 | 39.0 | 114.7 |
--------------------------------------------------------------------------------
| Pledges given | 0.0 | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Other commitments | | | | |
--------------------------------------------------------------------------------
| Guarantees given for liabilities | 0.0 | 71.4 | | 0.4 |
| on uncompleted projects | | | | |
--------------------------------------------------------------------------------
| Investment commitments given | 2.2 | 4.3 | -48.3 | 2.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair and nominal | IFRS | IFRS | IFRS |
| values of | 31.3.09 | 31.3.2008 | 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 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of | | IFRS | | IFRS | | IFRS |
| derivative | | | | | | |
| instruments | | | | | | |
--------------------------------------------------------------------------------
| | | 3/2009 | | 3/2008 | | 12/2008 |
--------------------------------------------------------------------------------
| Foreign exchange | | 0.0 | | 8.1 | | 0.0 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | | 22.4 | | 0.0 | | 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 | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/0 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 9 | 2/08 | 08 | 8 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 86.4 | 121. | 126. | 142.4 | 146.4 | | | |
| | | 4 | 7 | | | | | |
--------------------------------------------------------------------------------
| Operating | 1.9 | 0.7 | 14.1 | 9.2 | 8.9 | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | -1.5 | -3.3 | -2.9 | -2.4 | -0.6 | | | |
| income and | | | | | | | | |
| expenses, | | | | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 0.4 | -2.6 | 11.2 | 6.8 | 8.3 | | | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 453.9 | 455. | 455. | 521.1 | 451.3 | | | |
| 1) | | 3 | 2 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.00 | -0.0 | 0.21 | 0.12 | 0.16 | | | |
| share, eur | | 6 | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 4.42 | 4.54 | 4.61 | 4.40 | 4.38 | | | |
| share, eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Share price, | 3.00 | 3.47 | 4.19 | 5.28 | 5.55 | | | |
| eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, | 40.9 | 41.3 | 45.9 | 44.9 | 52.1 | | | |
| % 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Net interest | 170.6 | 169. | 127. | 122.4 | 76.1 | | | |
| bearing debt | | 4 | 9 | | | | | |
| 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Gearing, % 1) | 105.3 | 101. | 75.2 | 74.8 | 46.3 | | | |
| | | 7 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/0 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 9 | 2/08 | 08 | 8 | 8 | | | |
--------------------------------------------------------------------------------
| Business | 54.8 | 77.9 | 74.3 | 92.2 | 104.8 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 25.8 | 33.3 | 31.4 | 37.1 | 26.0 | | | |
--------------------------------------------------------------------------------
| International | 5.8 | 10.2 | 21.0 | 13.1 | 15.7 | | | |
--------------------------------------------------------------------------------
| Other | 2.2 | 3.0 | 2.7 | 2.8 | 2.9 | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -2.2 | -3.1 | -2.7 | -2.9 | -2.9 | | | |
--------------------------------------------------------------------------------
| Group, total | 86.4 | 121. | 126. | 142.4 | 146.4 | | | |
| | | 4 | 7 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/0 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 9 | 2/08 | 08 | 8 | 8 | | | |
--------------------------------------------------------------------------------
| Business | 5.9 | 6.0 | 3.7 | 9.9 | 8.2 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 0.0 | -1.2 | 0.5 | 0.9 | 0.4 | | | |
--------------------------------------------------------------------------------
| International | -2.5 | -2.7 | 10.8 | -0.1 | 1.2 | | | |
--------------------------------------------------------------------------------
| Other | -1.6 | -1.4 | -1.0 | -1.6 | -0.9 | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | | |
--------------------------------------------------------------------------------
| Group, total | 1.9 | 0.7 | 14.1 | 9.2 | 8.9 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (%) | 1-3/0 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 9 | 2/08 | 08 | 8 | 8 | | | |
--------------------------------------------------------------------------------
| Business | 10.8 | 7.8 | 4.9 | 10.8 | 7.8 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 0.0 | -3.6 | 1.7 | 2.5 | 1.6 | | | |
--------------------------------------------------------------------------------
| International | -43.3 | -26. | 51.5 | -0.9 | 7.9 | | | |
| | | 5 | | | | | | |
--------------------------------------------------------------------------------
| Group, total | 2.2 | 0.6 | 11.1 | 6.4 | 6.1 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3. | 31.1 | 30.9 | 30.6. | 31.3. | | | |
| | 09 | 2.08 | .08 | 08 | 08 | | | |
--------------------------------------------------------------------------------
| Business | 252.8 | 265. | 228. | 291.1 | 235.2 | | | |
| Premises | | 7 | 8 | | | | | |
--------------------------------------------------------------------------------
| Housing | 169.6 | 154. | 186. | 186.8 | 182.4 | | | |
| | | 0 | 3 | | | | | |
--------------------------------------------------------------------------------
| International | 31.5 | 35.6 | 40.2 | 43.2 | 33.7 | | | |
--------------------------------------------------------------------------------
| Group, total | 453.9 | 455. | 455. | 521.1 | 451.3 | | | |
| | | 3 | 2 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3. | 31.1 | 30.9 | 30.6. | 31.3. | | | |
| | 09 | 2.08 | .08 | 08 | 08 | | | |
--------------------------------------------------------------------------------
| Business | 69.2 | 63.9 | 63.5 | 51.2 | 43.7 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 134.9 | 138. | 115. | 105.3 | 97.0 | | | |
| | | 9 | 9 | | | | | |
--------------------------------------------------------------------------------
| International | 151.0 | 138. | 143. | 145.1 | 115.1 | | | |
| | | 6 | 9 | | | | | |
--------------------------------------------------------------------------------
| Other and | -14.0 | -2.0 | -16. | -5.4 | 4.0 | | | |
| eliminations | | | 6 | | | | | |
--------------------------------------------------------------------------------
| Group, total | 341.1 | 339. | 306. | 296.2 | 259.8 | | | |
| | | 4 | 6 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Residential | | | | | | | | |
| production | | | | | | | | |
--------------------------------------------------------------------------------
| in Finland | 1-3/0 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| (units) | 9 | 2/08 | 08 | 8 | 8 | | | |
--------------------------------------------------------------------------------
| Start-ups | 4 | 0 | 49 | 53 | 8 | | | |
--------------------------------------------------------------------------------
| Completed | 27 | 13 | 32 | 63 | 33 | | | |
--------------------------------------------------------------------------------
| Under | 58 | 0 | 31 | 104 | 125 | | | |
| construction | | | | | | | | |
| 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Completed and | 156 | 133 | 140 | 128 | 105 | | | |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Sold | 211 | 265 | 251 | 247 | 298 | | | |
--------------------------------------------------------------------------------
| - of which | 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) | 31.3.09 | 31.3.08 | MEUR | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 90.7 | 98.7 | -7.9 | -8.0 | 116.9 |
--------------------------------------------------------------------------------
| Housing | 153.4 | 116.8 | 36.7 | 31.4 | 158.4 |
--------------------------------------------------------------------------------
| International | 156.4 | 123.6 | 32.8 | 26.5 | 158.6 |
--------------------------------------------------------------------------------
| Other Operations | 171.3 | 162.3 | 9.0 | 5.6 | 185.1 |
--------------------------------------------------------------------------------
| Eliminations | -159.2 | -156.0 | -3.3 | | -195.2 |
--------------------------------------------------------------------------------
| Group, total | 412.6 | 345.3 | 67.3 | 19.5 | 423.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.09 | 31.3.08 | MEUR | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 50.7 | 76.3 | -25.6 | -33.6 | 81.7 |
--------------------------------------------------------------------------------
| Housing | 138.1 | 102.8 | 35.2 | 34.3 | 141.5 |
--------------------------------------------------------------------------------
| International | 159.0 | 114.0 | 45.1 | 39.5 | 147.2 |
--------------------------------------------------------------------------------
| Other Operations | 64.1 | 44.6 | 19.4 | 43.6 | 65.7 |
--------------------------------------------------------------------------------
| Eliminations | -161.2 | -156.5 | -4.7 | | -178.9 |
--------------------------------------------------------------------------------
| Group, total | 250.6 | 181.2 | 69.5 | 38.3 | 257.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.09 | 31.3.08 | MEUR | % | 31.12.08 |
--------------------------------------------------------------------------------
| Business Premises | 69.2 | 43.7 | 25.5 | 58.2 | 63.9 |
--------------------------------------------------------------------------------
| Housing | 134.9 | 97.0 | 37.9 | 39.1 | 138.9 |
--------------------------------------------------------------------------------
| International | 151.0 | 115.1 | 35.9 | 31.2 | 138.6 |
--------------------------------------------------------------------------------
| Other operations and | -14.0 | 4.0 | -18.0 | | -2.0 |
| eliminations | | | | | |
--------------------------------------------------------------------------------
| Group, total | 341.1 | 259.8 | 81.3 | 31.3 | 339.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change, | IFRS |
--------------------------------------------------------------------------------
| (MEUR) | 31.3.09 | 31.3.08 | MEUR | 31.12.08 |
--------------------------------------------------------------------------------
| Land areas and plot-owning | 144.2 | 93.1 | 51.1 | 142.1 |
| companies | | | | |
--------------------------------------------------------------------------------
| Business Premises | 25.0 | 17.0 | 8.0 | 24.6 |
--------------------------------------------------------------------------------
| Housing | 42.1 | 30.5 | 11.6 | 41.6 |
--------------------------------------------------------------------------------
| International | 77.0 | 45.5 | 31.5 | 76.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Work in progress | 103.1 | 78.7 | 24.5 | 100.8 |
--------------------------------------------------------------------------------
| Business Premises | 30.6 | 19.1 | 11.6 | 30.0 |
--------------------------------------------------------------------------------
| Housing | 57.7 | 43.2 | 14.5 | 57.3 |
--------------------------------------------------------------------------------
| International | 14.8 | 16.4 | -1.7 | 13.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares in completed housing | 37.6 | 33.0 | 4.6 | 34.0 |
| corporations and real estate | | | | |
| companies | | | | |
--------------------------------------------------------------------------------
| Business Premises | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Housing | 34.2 | 23.9 | 10.3 | 30.6 |
--------------------------------------------------------------------------------
| International | 3.3 | 9.2 | -5.8 | 3.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other inventories | 17.8 | 12.2 | 5.6 | 17.9 |
--------------------------------------------------------------------------------
| Business Premises | 5.0 | 5.0 | 0.0 | 5.0 |
--------------------------------------------------------------------------------
| Housing | 4.4 | 4.7 | -0.3 | 4.6 |
--------------------------------------------------------------------------------
| International | 9.4 | 3.4 | 5.9 | 9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories, total | 302.8 | 217.0 | 85.8 | 294.8 |
--------------------------------------------------------------------------------
| Business Premises | 60.7 | 41.1 | 19.6 | 59.6 |
--------------------------------------------------------------------------------
| Housing | 138.4 | 102.3 | 36.1 | 134.0 |
--------------------------------------------------------------------------------
| International | 104.5 | 74.6 | 29.9 | 102.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business Premises | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/200 | 1-3/200 | MEUR | % | 2008 |
| | 9 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 54.8 | 104.8 | -49.9 | -47.7 | 349.1 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 5.9 | 8.2 | -2.2 | -27.2 | 27.8 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 0.9 | 1.0 | 0.0 | -4.7 | 0.9 |
--------------------------------------------------------------------------------
| Current assets | 89.8 | 97.7 | -7.9 | -8.1 | 116.0 |
--------------------------------------------------------------------------------
| Total assets | 90.7 | 98.7 | -7.9 | -8.0 | 116.9 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 11.2 | 1.3 | 9.9 | 771.4 | 1.1 |
--------------------------------------------------------------------------------
| Current liabilities | 39.5 | 75.0 | -35.5 | -47.3 | 80.6 |
--------------------------------------------------------------------------------
| Total liabilities | 50.7 | 76.3 | -25.6 | -33.6 | 81.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Invested capital at end | 69.2 | 43.7 | 25.5 | 58.2 | 63.9 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 36.4 | 95.2 | | | 60.8 |
| 1) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Order backlog at end of | 252.8 | 235.2 | 17.6 | 7.5 | 265.7 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/200 | 1-3/200 | MEUR | % | 2008 |
| | 9 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 25.8 | 26.0 | -0.2 | -0.7 | 127.9 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 0.0 | 0.4 | -0.4 | | 0.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 1.8 | 2.4 | -0.6 | -24.6 | 1.9 |
--------------------------------------------------------------------------------
| Current assets | 151.6 | 114.4 | 37.2 | 32.6 | 156.5 |
--------------------------------------------------------------------------------
| Total assets | 153.4 | 116.8 | 36.7 | 31.4 | 158.4 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 61.3 | 41.2 | 20.1 | 48.8 | 58.3 |
--------------------------------------------------------------------------------
| Current liabilities | 76.8 | 61.6 | 15.1 | 24.5 | 83.2 |
--------------------------------------------------------------------------------
| Total liabilities | 138.1 | 102.8 | 35.2 | 34.3 | 141.5 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Invested capital at end | 134.9 | 97.0 | 37.9 | 39.1 | 138.9 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 0.0 | 2.0 | | | 0.7 |
| 1) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Order backlog at end of | 169.6 | 182.4 | -12.7 | -7.0 | 154.0 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| International Operations | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/200 | 1-3/200 | MEUR | % | 2008 |
| | 9 | 8 | | | |
--------------------------------------------------------------------------------
| Revenue | 5.8 | 15.7 | -10.0 | -63.4 | 60.1 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | -2.5 | 1.2 | -3.7 | | 9.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 16.6 | 11.4 | 5.3 | 46.6 | 16.2 |
--------------------------------------------------------------------------------
| Current assets | 139.7 | 112.2 | 27.5 | 24.5 | 142.4 |
--------------------------------------------------------------------------------
| Total assets | 156.4 | 123.6 | 32.8 | 26.5 | 158.6 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 10.1 | 10.6 | -0.6 | -5.2 | 12.7 |
--------------------------------------------------------------------------------
| Current liabilities | 149.0 | 103.3 | 45.6 | 44.1 | 134.6 |
--------------------------------------------------------------------------------
| Total liabilities | 159.0 | 114.0 | 45.1 | 39.5 | 147.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Invested capital at end | 151.0 | 115.1 | 35.9 | 31.2 | 138.6 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | -5.4 | 5.5 | | | 9.3 |
| 1) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Order backlog at end of | 31.5 | 33.7 | -2.2 | -6.5 | 35.6 |
| period | | | | | |
--------------------------------------------------------------------------------
In calculating the key ratio only the profit for the period has been annualised