SRV'S ORDER BACKLOG CONTINUED TO GROW - SRV'S INTERIM REPORT 1 JANUARY-31 MARCH 2010
SRV GROUP PLC INTERIM REPORT 5 May 2010, 8.30 a.m. EET
Reporting period 1 January-31 March 2010 in brief:
- SRV's revenue was EUR 95.0 million (EUR 87.0 million in January-March 2009),
change 9.1%
- Operating profit was EUR 1.6 million (EUR 1.8 million), change 12.9% negative
- Profit before taxes was EUR 0.2 million (EUR 0.3 million), change 49.4%
negative
- The order backlog at the close of the review period was EUR 530.0 million (EUR
458.5 million), change 15.6%
- New contracts EUR 140.6 million (EUR 91.3 million), change 53.9%
- The equity ratio was 37.0 per cent (40.5%)
- Earnings per share were EUR -0.01 (EUR 0.00)
- SRV changes the previous outlook for 2010 due to the postponement of start-ups
of projects in Russia. Revenue in 2010 is expected to exceed the previous year's
level and profit before taxes is expected to be positive.
The interim report has been prepared in accordance with IAS 34. The disclosed
information is unaudited.
“SRV posted positive development in revenue and its order backlog in
January-March. The volume of new contracts increased by 54 per cent, despite the
fall in the order backlog of our international operations. This is proof of
SRV's strong competitiveness, since our order backlog has continued to grow for
four consecutive quarters. SRV's operating profit and financial result declined.
SRV's Business Premises performed well in an extremely challenging market, its
order backlog showing growth of 31.2 per cent. Our robust expertise in
implementation, and our reputation as a reliable construction firm, have
supported new customer acquisition in a tight market situation and enabled us to
further increase our market share. Revenue in the Business Premises business
area was almost on a par with the previous year and profitability was good.
The Housing business area continued to perform strongly. Its revenue and
operating profit clearly improved, thanks to the growth in contract production
volumes and housing sales. SRV sold a total of 95 housing units to consumers (27
units in January-March 2009). Demand for housing is also directed towards
projects under construction; SRV will start up new residential projects within
the next few months.
In our Russian operations, start-ups of projects under development were
postponed. However, the Russian financial and property markets are gradually
recovering. In order to further boost our growth strategy, we have continued to
diversify our business model. Besides developing implementation of SRV's current
projects, we are placing a particular emphasis on the preparation of the first
investment sites for the property fund we established with VTB and Deutsche
Bank, as well as the development of a shopping centre to be realised in
cooperation with Shanghai Industrial Investment Group.
SRV's solvency and financial position have remained strong, supporting us in
utilising our innovative project development know-how”, says Hannu Linnoinen,
CEO of SRV.
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| Group key figures | IFRS | IFRS | | | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/ | 1-3/ | change, | change,% | 1-12/ |
| | 2010 | 2009 | MEUR | | 2009 |
--------------------------------------------------------------------------------
| Revenue | 95.0 | 87.0 | 8.0 | 9.1 | 390.5 |
--------------------------------------------------------------------------------
| Operating profit | 1.6 | 1.8 | -0.2 | -12.9 | 10.7 |
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| Financial income and | -1.4 | -1.5 | 0.1 | | -4.2 |
| expenses, total | | | | | |
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| Profit before taxes | 0.2 | 0.3 | -0.2 | -49.4 | 6.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 530.0 | 458.5 | 71.5 | 15.6 | 481.6 |
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| New agreements | 140.6 | 91.3 | 49.3 | 53.9 | 396.1 |
--------------------------------------------------------------------------------
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| Operating profit, % | 1.6 | 2.1 | | | 2.7 |
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| Net profit, % | -0.7 | -0.1 | | | 0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | 37.0 | 40.5 | | | 41.3 |
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| Net interest bearing debt | 199.8 | 172.6 | | | 179.9 |
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| Net gearing ratio, % | 132.3 | 107.1 | | | 109.8 |
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| Return on investment, % 1) | 2.5 | 2.8 | | | 4.9 |
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| Return on equity, % 1) | -1.7 | -0.2 | | | 1.8 |
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| | | | | | |
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| Earnings per share, EUR | -0.01 | 0.00 | | | 0.08 |
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| Equity per share, EUR | 4.36 | 4.40 | | | 4.48 |
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| Weighted average number of | 34.0 | 36.2 | | -6.2 | 36.0 |
| shares outstanding | | | | | |
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1) In calculating the key ratio only the profit for the period has been
annualised
Consolidated revenue was EUR 95.0 million (EUR 87.0 million in January-March
2009), of which Finland accounted for 98 per cent (93%) and Russia and the
Baltic countries for 2 per cent (7%). Revenue in the Business Premises business
area was EUR 54.7 million (EUR 54.8 million). Revenue in the Housing business
area was EUR 38.3 million (EUR 26.6 million). Revenue in the International
business area was EUR 2.0 million (EUR 5.6 million).
The Group's operating profit was EUR 1.6 million (EUR 1.8 million in
January-March 2009). Operating profit margin was 1.6 per cent (2.1%). Operating
profit in the Business Premises business area was EUR 4.3 million (EUR 5.9
million). Operating profit in the Housing business area was EUR 2.4 million (EUR
-0.1 million). Operating loss in the International business area was EUR 3.9
million (operating loss of EUR -2.5 million).
The Group's profit before taxes was EUR 0.2 million (EUR 0.3 million in
January-March 2009). The loss for the review period was EUR 0.7 million (a loss
of EUR 0.1 million). Earnings per share were EUR -0.01 (EUR 0.00). Return on
equity was -1.7 per cent (-0.2%) and return on investment was 2.5 per cent
(2.8%).
The order backlog was EUR 530.0 million on 31 March 2010 (EUR 458.5 million on
31 March 2009).
Key figures for the Segments
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| | IFRS | IFRS | | | IFRS |
--------------------------------------------------------------------------------
| Revenue | 1-3/ | 1-3/ | change, | change,% | 1-12/ |
| (EUR million) | 2010 | 2009 | MEUR | | 2009 |
--------------------------------------------------------------------------------
| Business Premises | 54.7 | 54.8 | -0.1 | -0.2 | 208.0 |
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| Housing | 38.3 | 26.6 | 11.7 | 43.9 | 158.6 |
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| International | 2.0 | 5.6 | -3.6 | -65.0 | 24.0 |
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| Other Operations | 2.5 | 2.2 | 0.3 | 14.8 | 8.7 |
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| Eliminations | -2.5 | -2.2 | -0.3 | | -8.8 |
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| Group, total | 95.0 | 87.0 | 8.0 | 9.1 | 390.5 |
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| | IFRS | IFRS | | | IFRS |
--------------------------------------------------------------------------------
| Operating profit | 1-3/ | 1-3/ | change, | change, | 1-12/ |
| (EUR million) | 2010 | 2009 | MEUR | % | 2009 |
--------------------------------------------------------------------------------
| Business Premises | 4.3 | 5.9 | -1.6 | -27.3 | 18.0 |
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| Housing | 2.4 | -0.1 | 2.5 | | 5.4 |
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| International | -3.9 | -2.5 | -1.4 | | -7.7 |
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| Other Operations | -1.2 | -1.6 | 0.4 | | -4.7 |
--------------------------------------------------------------------------------
| Eliminations | -0.1 | 0.0 | -0.1 | | -0.3 |
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| Group, total | 1.6 | 1.8 | -0.2 | -12.9 | 10.7 |
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| Operating profit | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (%) | 1-3/2010 | 1-3/2009 | 1-12/2010 |
--------------------------------------------------------------------------------
| Business Premises | 7.9 | 10.8 | 8.6 |
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| Housing | 6.3 | -0.4 | 3.4 |
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| International | -197.5 | -44.4 | -32.1 |
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| Group, total | 1.6 | 2.1 | 2.7 |
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| Order backlog | IFRS | IFRS | change, | change, | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | meur | % | 12/2009 |
--------------------------------------------------------------------------------
| Business Premises | 331.7 | 252.8 | 79.0 | 31.2 | 255.3 |
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| Housing | 174.3 | 174.3 | 0.1 | 0.0 | 201.7 |
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| International | 24.0 | 31.5 | -7.5 | -24.0 | 24.6 |
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| Group, total | 530.0 | 458.5 | 71.5 | 15.6 | 481.6 |
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| - sold order backlog | 389 | 280 | | | 317 |
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| - unsold order | 141 | 176 | | | 165 |
| backlog | | | | | |
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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 | 2010 | 2009 | MEUR | | 2009 |
| million) | | | | | |
--------------------------------------------------------------------------------
| Revenue | 54.7 | 54.8 | -0.1 | -0.2 | 208.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 4.3 | 5.9 | -1.6 | -27.3 | 18.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, % | 7.9 | 10.8 | | | 8.6 |
--------------------------------------------------------------------------------
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| Order backlog | 331.7 | 252.8 | 79.0 | 31.2 | 255.3 |
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The Business Premises business area comprises SRV Toimitilat Oy's retail,
office, logistics and rock construction operations and property development.
Revenue in the Business Premises business area was EUR 54.7 million (EUR 54.8
million). Operating profit was EUR 4.3 million (EUR 5.9 million), generating an
operating profit margin of 7.9 per cent (10.8%). The order backlog grew by 31.2
per cent, to EUR 331.7 million (EUR 252.8 million).
Among the projects completed during the review period were the first phase of
Malmi Hospital in Helsinki, including underground technical facilities and soil
improvement work in the area, the renovation of Kiinteistö Oy Niittymäentie 7
for Ilmarinen Mutual Pension Insurance Company in Espoo, alteration and
renovation works in the mail sorting department of Itella's postal centre in
Pasila, Helsinki, and repair works on the second stage of the University of
Helsinki's Metsätalo Building in Unioninkatu, Helsinki.
In January, SRV signed a contract for the construction of the spa hotel Holiday
Club Saimaa in Lappeenranta. In addition to the hotel, the contract includes an
aqua park with a wellness area, a restaurant world and a multifunction ice
arena. The spa hotel will be completed in the summer of 2011. In January, SRV
and the Finnish Fair Corporation signed a contract for the heightening of the
Helsinki Fair Centre's car park, expanding it by approximately 1,200 new parking
spaces. The project will be completed by the end of 2010.
In February, Citycon Oyj chose SRV as its project management contractor for the
construction and renovation of Espoontori shopping centre. The total floor area
of the project is about 18,600 square metres and the renovation will be
completed by December 2010. In February, SRV and Helsinki University Premises
and Property Services signed a project management contract on the construction
and renovation of the Kaisa-talo building, a shopping centre in Kaisaniemenkatu,
Helsinki, which will be converted into the University's central campus library.
This 30,740 square metre project will be completed by 1 May 2012.
car service and repair premises for During the review period, contracts were
also signed for the construction of new ScanAuto in Hämeenlinna, the renovation
of the premises of the European Chemicals Agency in Annankatu, Helsinki, and the
renovation of the Jyväskylä Forum shopping centre owned by Citycon Oyj.
Moreover, SRV signed a contract with the City of Hyvinkää on the construction of
new premises for town hall in the Old Wool Factory.
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| | IFRS | IFRS | | | IFRS |
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| Housing | 1-3/ | 1-3/ | change, | change,% | 1-12/ |
| (EUR million) | 2010 | 2009 | MEUR | | 2009 |
--------------------------------------------------------------------------------
| Revenue | 38.3 | 26.6 | 11.7 | 43.9 | 158.6 |
--------------------------------------------------------------------------------
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| Operating profit | 2.4 | -0.1 | 2.5 | | 5.4 |
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| Operating profit, % | 6.3 | -0.4 | | | 3.4 |
--------------------------------------------------------------------------------
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| Order backlog | 174.3 | 174.3 | 0.1 | 0.0 | 201.7 |
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The Housing business area comprises housing construction in the Helsinki
Metropolitan Area and the neighbouring municipalities, in addition to regional
business operations. Besides housing, regional business operations include
commercial, business premises and logistics construction projects.
Revenue in the Housing business area amounted to EUR 38.3 million (EUR 26.6
million) in the review period and operating profit was EUR 2.4 million (EUR -0.1
million). This growth in revenue and operating profit was attributable to the
pickup in housing sales as well as the expansion of contract operation volumes.
The order backlog was EUR 174.3 million (EUR 174.3 million).
During the review period, we signed three negotiated contracts worth EUR 12.7
million with external clients. A contract was signed with Scan-Auto, for the
construction of a Scania centre in Oulu, for servicing large vehicles. In March,
SRV completed a Scania centre in Jyväskylä. Moreover, we signed a contract with
YH-Asumisoikeus Länsi Oy for the construction of 28 right-of-occupancy flats in
the Vatiala district in Kangasala. These terraced houses will be completed in
April 2011. In Ylöjärvi, SRV will build two blocks of flats housing a total of
40 residential units for AVO Vuokratalot Oy.
SRV has several developer contracting housing projects in the pre-marketing
phase, on the basis of which the company has already decided to start the
construction of 78 housing units in the Matinkylä district in Espoo and 26
housing units in the centre of Kaarina. Since these projects not yet reached the
readiness stage required for sales under the RS system, they were not included
in the reported order backlog.
During the review period, 95 (27) developer contracting units were sold. In
addition to completed units, demand was also directed at projects under
construction. At the end of the period, 247 (211) residential units were being
constructed, 169 (180) of which had not been sold. There were 138 (156)
completed but unsold units, 32 of which were rented at the period-end. A total
of 16 (58) developer contracting residential units were completed during the
review period. Based on the current completion schedules, SRV estimates that a
total of 116 developer contracting residential units will be completed by the
end of 2010.
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| Developer contracting housing | 1-3/ | 1-3/ | change, | 1-12/ |
| production in Finland | 2010 | 2009 | units | 2009 |
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| Start-ups | 0 | 4 | -4 | 251 |
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| Sold | 95 | 27 | 68 | 207 |
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| Completed | 16 | 58 | -42 | 252 |
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| Completed and unsold 1) | 138 | 156 | -18 | 171 |
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| Under construction 1) | 247 | 211 | 36 | 263 |
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| - of which unsold | 169 | 180 | -11 | 231 |
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1) at the end of the period
Major projects under construction included the S-Group's Kodin Terra hardware
and home decor department store and ABC service station in the Kolmenkulma
business estate in Nokia, to be completed in late spring 2010. The most
important residential projects under construction included a high-rise project
of 74 apartments for Sato in the Vallikallio district of Espoo as well as the
developer contracting projects Musketööri in the Kartanonkoski district of
Vantaa (88 units) and Vantaan Martti in the Martinlaakso district of Vantaa.
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| | IFRS | IFRS | | | IFRS |
--------------------------------------------------------------------------------
| International Operations | 1-3/ | 1-3/ | change, | change,% | 1-12/ |
| (EUR million) | 2010 | 2009 | MEUR | | 2009 |
--------------------------------------------------------------------------------
| Revenue | 2.0 | 5.6 | -3.6 | -65.0 | 24.0 |
--------------------------------------------------------------------------------
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| Operating profit | -3.9 | -2.5 | -1.4 | | -7.7 |
--------------------------------------------------------------------------------
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| Operating profit, % | -197.5 | -44.4 | | | -32.1 |
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| Order backlog | 24.0 | 31.5 | -7.5 | -24.0 | 24.6 |
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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 2.0 million (EUR 5.6
million). The lower revenue was due to the small number of projects under
construction. Operating loss was EUR 3.9 million (a loss of EUR 2.5 million). In
addition to the small number of projects under construction, operating profit
was affected by the development costs of developer contracting projects and the
fixed costs of business operations. Furthermore, a cost increase provision of
EUR 1.9 million was made. The order backlog was EUR 24.0 million (EUR 31.5
million).
Russia
The leasing of the Etmia II office and parking facility project in the heart of
Moscow was continued, with 26 per cent of the facilities leased by the end of
the review period. SRV's role in the project is to act as the project management
contractor and as co-owner with a 50 per cent stake.
In the Moscow area, construction of the electrical connection for the Mytischi
shopping centre project, which has been developed by SRV, will be completed
during the summer of 2010. A building permit for this project was obtained
already in the summer of 2009. The majority owner of the project is the Finnish
real estate investment company Vicus, with a 75 per cent stake. 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 its total investments amount to about EUR 7.7
million.
At the Sheremetyevo airport in Moscow, SRV began the renovation of the old
Aeroport hotel. This hotel, which will move under the Park Inn brand, is a
continuation of the cooperation SRV initiated in St. Petersburg with the hotel
owner, Wenaas Group.
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. In January 2010, the Urban Planning and
Architectural Committee of St. Petersburg approved SRV's concept for this
600,000 square metre project, and site planning for phase I is about to begin.
SRV has invested about EUR 50 million in land and properties in this area;
further investment in land acquisition is estimated at EUR 10 million. At the
moment, SRV owns 87.5 per cent of the project, but its ownership will decline to
77.5 per cent when all land-owning arrangements have been completed according to
the cooperation contract.
The development of the Eurograd logistics area in St Petersburg continued. SRV
has 49 per cent ownership of the Russian company that possesses a plot of 24.9
hectares located north of St. Petersburg, in the immediate 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 has been completed.
In the city of Vyborg, the intensified marketing campaign for the apartments in
the Papula residential area will continue until the summer. A total of 6 housing
units have been sold while 32 units remained unsold at the end of the period.
In JanuaryMarch, SRV had a particular focus on the analysis and clarification
of the investment sites of VTBC-DB Real Estate Partners I in Moscow and St.
Petersburg. The fund primarily invests in the construction of offices,
commercial premises, hotels and upscale housing in Moscow and St. Petersburg.
SRV's share of the investment commitments in the first phase is EUR 20 million.
The other investors involved in the fund are VTB Capital and Deutsche Bank and
the Finnish pension insurance companies Ilmarinen and Etera. VTB Capital and
Deutsche Bank act in partnership as the sponsor and general partner of the fund.
Their tasks include identifying investments and arranging financing for the
projects. SRV acts both as an investor and project management contractor with
respect to the fund, through which it expects to receive at least EUR 200
million worth of construction contracts.
During the period, SRV signed a joint stock company shareholder agreement with
Shanghai Industrial Investment Group for the construction of a shopping mall in
the Baltic Pearl area of St. Petersburg. SRV will be responsible for the
development and construction of the project and initiate the required concept
design, market research and external financing arrangements. The construction of
the shopping centre will move ahead if a final investment decision is made by 31
December, 2010. The shopping centre is part of a Baltic Pearl development
project in which Baltic Pearl CJSC will use a land area of over 205 hectares,
located south-west of central St. Petersburg, for development. This project is
China's largest international investment project, apart from oil and natural gas
investments.
Baltic countries
Volumes in the Baltic business operation were low. In Estonia, 4 (0) residential
units were sold during the period and, all in all, there were 27 (41) completed
but unsold units at the end of the period. In Estonia, a cost increase provision
of EUR 1.3 million was made. In Latvia, the number of staff was adjusted to the
market situation.
Due to a delay in the financing of a construction contract between SRV and the
International School of Latvia, the project start-up has been postponed to the
end of 2010.
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| | IFRS | IFRS | | | IFRS |
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| Other Operations | 1-3/ | 1-3/ | change, | change,% | 1-12/ |
| (EUR million) | 2010 | 2009 | MEUR | | 2009 |
--------------------------------------------------------------------------------
| Revenue | 2.5 | 2.2 | 0.3 | 14.8 | 8.7 |
--------------------------------------------------------------------------------
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| Operating profit | -1.2 | -1.6 | 0.4 | | -4.7 |
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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 2.5 million
(EUR 2.2 million) and operating loss was EUR 1.2 million (a loss of EUR 1.6
million). This favourable development in revenue and operating profit was
attributable to higher operation volumes.
Financing and financial position
Net operational cash flow was EUR -7.1 million (EUR -0.8 million in
January-March 2009). The weakening of the cash flow during the review period was
attributed to the increase of inventories. The group's inventories were EUR
303.9 million (EUR 307.5 million), the share of land areas and plot-owning
companies being EUR 165.9 million (EUR 144.2 million). The Group's invested
capital amounted to EUR 356.9 million (EUR 342.3 million).
At the end of the review period, the Group's financing reserves were EUR 88.8
million, of which the Group's cash assets amounted to EUR 6.6 million and
committed undrawn financing reserves amounted to EUR 82.2 million. Undrawn
housing corporate loans related to RS projects totalled EUR 39.4 million. The
Group's net interest-bearing liabilities were EUR 199.8 million on 31 March 2010
(EUR 172.6 million). Net financing expenses totalled EUR 1.4 million (EUR 1.5
million).
Investments in SRV's developer contracting housing projects in Finland consonant
with the RS-system, including completed, unsold projects, total around EUR 71.1
million. SRV estimates that the completion of these projects requires another
EUR 26.4 million. Investments in business premise projects in Finland amount to
EUR 25.6 million. Investments in international developer contracting projects
amount to about EUR 44.5 million, of which EUR 1.8 million relates to unsold
residential projects in Estonia, EUR 3.4 million to an unsold housing project in
Vyborg and EUR 39.3 million to the Etmia office project and Mytischi shopping
centre project.
Equity ratio was 37.0 per cent (40.5%). The change in the equity ratio and net
liabilities was affected by the EUR 8.5 million derivative agreement signed by
SRV with Nordea Bank Ab for 1,909,483 SRV Group Plc's shares which are
considered equal to treasury shares held by the company (an impact of
approximately 2.1 percentage points) as well as the increase in receivables. The
Group's shareholders' equity totalled EUR 150.4 million (EUR 161.2 million on 31
March 2009). The return on investment was 2.5 per cent (2.8%) and the return on
equity was -1.7 per cent (-0.2%).
Investments
The Group's investments totalled EUR 0.5 million (EUR 0.1 million) and were
mainly related to the acquisition of machinery and equipment.
Unbuilt land areas, land acquisition commitments and land development agreements
--------------------------------------------------------------------------------
| Land reserve | Business | Housing | International | Total |
| 31.3.2010 | Operations | | Operations | |
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| Unbuilt land areas and land acquisition commitments |
--------------------------------------------------------------------------------
| Building rights*, | 199 000 | 279 000 | 842 000 | 1 320 000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| Land development | | | | |
| agreements | | | | |
--------------------------------------------------------------------------------
| Building rights*, | 491 000 | 309 000 | 117 000 | 917 000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| * Building rights also include the estimated building rights/construction |
| volume of unzoned land reserves and land areas covered by agreements in |
| projects that are wholly or partly owned by SRV |
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During the review period, SRV bought a total of 10,000 square metres of building
rights in the Matinkylä district from the city of Espoo. Furthermore, the
company has agreed with the city of Espoo on the purchase of 4,000 square metres
in Matinkylä. SRV bought 7,000 square metres of building rights in the Kaarela
area in the district of Kannelmäki in Helsinki. Moreover, the lease of 12,000
square metres of building rights in a HITAS project in the Arabianranta district
of Helsinki has been transferred from VVO to SRV.
Group structure
SRV is Finland's leading project management contractor that 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, the Group's parent company, is responsible
for the Group's management, treasury, finance and administrative functions. The
Property Development and Building Systems units support and serve all of the
Group's business operations.
SRV's business areas are Business Premises, Housing, International Operations,
and Other Operations. The Business Premises business area comprises the
operations of SRV Toimitilat Oy. Housing comprises the operations of SRV Asunnot
Oy and the regional subsidiaries. International Operations comprises the
business activities of the SRV International subgroup in Russia and the Baltic
countries. Other Operations consist primarily of the SRV Group Plc and SRV
Kalusto Oy businesses.
Personnel
SRV had an average payroll of 773 (815) employees, of whom 534 (579) were
white-collar. The parent company had an average staff of 46 (62) white-collar
employees. At the close of the review period, the Group had 786 (784) employees,
of whom 45 (58) were employed by the parent company. An average of 19 per cent
(17) of the employees work in subsidiaries and representative offices abroad.
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| Personnel by business area | 31.3.2009 | 31.3.2009 | Share of Group |
| | | | personnel, |
| | | | 31.3.2010, % |
--------------------------------------------------------------------------------
| Business Premises | 306 | 287 | 38,9 |
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| Housing | 215 | 233 | 27,4 |
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| International | 183 | 175 | 23,3 |
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| Other Operations | 82 | 89 | 10,4 |
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| Group, total | 786 | 784 | 100,0 |
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The share-based incentive plan for 2010 includes about 70 employees and the
reward is based mainly on consolidated and partly on business area performance.
The rewards to be paid for the earning period 2010 correspond to the total
maximum of 240,000 SRV Group Plc shares plus a corresponding sum of money paid
for tax withholding purposes.
Outlook for construction
The recovery of the world economy has been slow and unstable. The situation
continues to be challenging in the property and construction markets.
Expectations for increases in interest rates have been postponed in Europe and
the United States. The Finnish economy is expected to grow by 1-2 per cent in
2010.
The total number of building permits saw an upward trend at the beginning of the
review period. There has been some upward pressure on construction costs.
Unemployment in construction continues to increase, but at a decelerating pace.
Strong consumer confidence in the housing markets, and the low interest level
have increased demand, prompting a larger number of new start-ups in developer
contracting housing projects. Weak employment trends will have a negative
short-term effect on the housing markets. Meanwhile, in the longer term, trends
such as migration to population growth centres and the smaller size of household
dwelling units will increase the need for housing construction.
New start-ups in commercial and office construction continued to decrease during
the period. Vacancy rates in office premises in particular have reached a high
level and construction is slow. The near future outlook for commercial and
logistics construction is somewhat better.
The slight growth in renovations is expected to continue in 2010. The outlook
for civil engineering has weakened despite government support measures.
The economic situation in the Baltic countries has remained weak. In Estonia,
Latvia and Lithuania, the decline in total production is expected to continue in
2010, although at a decelerating pace. Construction and the property markets are
extremely slow. In the short term, the economic situation in the Baltic
countries will continue to be difficult.
The Russian economy continues to be challenging. On the other hand, the Russian
national economy has nevertheless revived due to rising oil prices, inflation
has abated and interest rates have declined while the scarce availability of
financing limits growth opportunities. In 2010, Russia's total production is
expected to grow by 4--6 per cent.
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. While the general economic trend is
upward, demand for property investments has remained weak. Interest rates are
low but, compared to pre-recession times, the availability of credit from banks
is lower and loan margins are clearly higher. The global financial crisis is
making it more difficult for SRV's clients to obtain financing and is hampering
the functioning of the property markets. Property values face pressures and the
number of property transactions and, in particular, new large-scale project
start-ups have decreased due to difficulties in securing 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.
Fierce competition for new orders in the construction sector may affect the
volume and profitability of SRV's new order backlog. In developer contracting
projects, recognition of revenue is based mainly on the Completed Contract
method. Revenue recognition depends on the percentage of sold premises in
delivered projects. Project sales are affected by factors such as the
availability of financing for the buyer and occupancy rate. When sales are
delayed, the recognition of revenue and operating profit is delayed
correspondingly. Postponed start-ups of developer contracting projects increase
the level of development expenses, which are recorded as costs. The slowdown in
housing sales will increase sales and marketing costs and interest expenses in
developer contracting housing production. After a rapid decline, housing sales
have recovered in Finland while remaining virtually at a standstill in Estonia.
Construction is subject to significant cost risks relating to subcontracting and
deliveries, and the control of these underlines the need for long-term planning.
A weak economic cycle also increases financial risks relating to subcontractors.
SRV's contracting model requires skilled and competent personnel. Warranty and
liability obligations related to construction can span up to ten years. At
present, the decline in construction costs has ended, with some of these costs
experiencing upward pressure.
Besides land acquisition risks, property projects face other challenges, such as
those related to the outcome of zoning, soil conditions, financing,
commercialisation of projects, partners, and the geographical location and type
of project. In accordance with its strategy, SRV has focused on developer
contracting projects and has increased its land acquisition in Finland and
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 2009 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 of EUR 100 million,
part of which will mature in 2012 and the rest in 2013. 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 2009 Annual Report and Financial Statements.
Corporate governance and resolutions of general meetings
The Annual General Meeting was held on 16 March 2010. The AGM adopted the
financial statements for 2009 and granted release from liability to the members
of the Board of Directors and the Presidents and CEOs. A dividend of EUR 0.12
per share was declared. Mr Ilpo Kokkila was elected chairman of the Board of
Directors and Mr Arto Hiltunen, Mr Timo Kokkila, Mr Lasse Kurkilahti, Mr Matti
Mustaniemi and Mr Ilkka Salonen 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 general meeting authorised the Board of Directors to decide on the
acquisition of the company's own shares, using the company's unrestricted
equity. The Board was authorised to acquire a maximum of 3,676,846 own shares,
however, in such a manner that the number of shares acquired on the basis of
this authorisation when combined with the shares already owned by the company
and its subsidiaries, does not at any given time exceed 3,676,846 shares, or 10
per cent of all shares of the company. Based on this authorisation, the Board
may acquire a maximum of 3,676,846 shares of the company in public trading
arranged by Nasdaq OMX Helsinki Oy at a market price valid at the moment of
acquisition, and a maximum of 2,400,000 shares of the company in public trading
arranged by Nasdaq OMX Helsinki Oy or otherwise for a maximum price of EUR 4.45
per share, the maximum being, however 3,676,846 shares. The aforementioned
authorisations include the right to acquire own shares otherwise than in
proportion to the holdings of the shareholders. These authorisations will remain
in force for 18 months from the decision of the meeting.
The general meeting authorised the Board of Directors to decide on the issue of
new shares or the transfer of treasury shares against payment or without
consideration. This authorisation includes the right to issue new shares or to
transfer the treasury shares in deviation from the shareholders' pre-emptive
subscription right under the terms of the Companies Act. This authorisation is
in force for two years from the decision of the meeting.
In its organisational meeting on 16 March 2010 the Board of Directors elected
Lasse Kurkilahti vice chairman of the Board, Matti Mustaniemi chairman of the
Audit Committee, Lasse Kurkilahti and Timo Kokkila members of the Audit
Committee, Arto Hiltunen and Ilkka Salonen 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 5,892 shareholders on 31 March 2010. The company
received two flagging notifications during the reporting period. On 5 January
2010, Nordea Bank AB (publ) announced that it had bought 1,909,483 SRV Group Plc
shares, increasing Nordea Group's total holding in SRV to 5.28 per cent. On 17
March 2010, Nordea Bank Suomi Oyj announced that it had purchased the
above-mentioned shares from Nordea Bank AB (publ), after which the total holding
of Nordea Group in SRV was 5.28 per cent. Both of these flagging notifications
are related to a futures contract between Nordea and SRV. Upon termination of
the contract, the shares will be sold and Nordea Group's holding in SRV will
fall to below 1/20 in July 2010.
The share closing price at OMX Helsinki at the end of the review period was EUR
6.41 (EUR 5.89 on 31 December 2009). The highest share price in the review
period was EUR 6.55 and the lowest was EUR 5.50. The change in the all-share
index of the Helsinki Stock Exchange (OMX Helsinki) during the same period was
10.1 per cent positive and the OMX Industrial and Services index 6.4 per cent
positive.
At the end of the review period, the company had a market capitalisation of EUR
216.9 million, excluding the Group's own shares. About 5.8 million shares were
traded during the period and the trade volume was EUR 31.6 million.
On 5 January 2010, SRV implemented the agreement signed with Eero Heliövaara on
11 August 2009 and Nordea Bank AB (publ) acquired Heliövaara's shares for a
per-share price of EUR 4.45. In the same connection, SRV signed an EUR 8.5
million derivative agreement with Nordea, maturing in July, for 1,909,483
company shares, according to which the shares will be sold to SRV or an entity
named by SRV. These shares are considered equal to treasury shares held by the
company.
At the end of the review period, SRV Group Plc's subsidiary SRV Kalusto Oy had
228,299 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. Taking
account of the derivative contract concluded with Nordea Bank AB, SRV Group Plc
and SRV Kalusto Oy had, on 31 March 2009, a total of 2,922,220 of SRV Group
Plc's shares, representing 7.9 per cent of the total number of the company's
shares and votes. On 4 May 2010, the Group had a total of 2,919,761 shares (7.9
per cent of the total number of the company's shares and combined number of
votes).
Financial targets
As SRV's medium term aim, the Board of Directors has set the achievement of
annual average growth of approximately 15 per cent in Group revenue and annual
average growth of over 30 per cent in revenue from 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. In addition, the company aims to
maintain an equity ratio of over 30 per cent.
The international economic and financial crisis has hampered the growth outlook
for business operations. Realisation of the sales of developer contracting
projects has an essential effect on the development of profitability. In the
current economic conditions, the set financial targets cannot be met. The
company is endeavouring to maintain profitability by rationalising operations
and cutting costs.
Previous outlook for 2010
Revenue in 2010 is expected to exceed the previous year's level and profit
before taxes is expected to be clearly positive.
Outlook for 2010
SRV changes the previous outlook for 2010 due to the postponement of start-ups
of projects in Russia. Revenue in 2010 is expected to exceed the previous year's
level and profit before taxes is expected to be positive.
Espoo, 5 May 2010
Board of Directors
All forward-looking statements in this review are based on the management's
current expectations and beliefs about future events, and actual results may
differ materially from the expectations and beliefs such statements contain.
For further information, please contact:
Hannu Linnoinen, CEO, CFO, +358 (201) 455 990, +358 (50) 523 5850
Jussi Ollila, SVP, Communications, +358 (201) 455 275, +358 (50) 372 5229
Distribution: Nasdaq OMX Helsinki, principal media, www.srv.fi
Key figures:
--------------------------------------------------------------------------------
| | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | 1-3/ | 1-3/ | 1-12/ |
| | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Revenue | EUR | 95.0 | 87.0 | 390.5 |
| | million | | | |
--------------------------------------------------------------------------------
| Operating profit | EUR | 1.6 | 1.8 | 10.7 |
| | million | | | |
--------------------------------------------------------------------------------
| Operating profit, % of revenue | % | 1.6 | 2.1 | 2.7 |
--------------------------------------------------------------------------------
| Profit before taxes | EUR | 0.2 | 0.3 | 6.5 |
| | million | | | |
--------------------------------------------------------------------------------
| Profit before taxes, % of | % | 0.2 | 0.4 | 1.7 |
| revenue | | | | |
--------------------------------------------------------------------------------
| Net profit attributable to | EUR | -0.4 | 0.0 | 2.9 |
| equity holders of the parent | million | | | |
| company | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity 1) | % | -1.7 | -0.2 | 1.8 |
--------------------------------------------------------------------------------
| Return on investment 1) | % | 2.5 | 2.8 | 4.9 |
--------------------------------------------------------------------------------
| Invested capital | EUR | 357.5 | 342.3 | 349.0 |
| | million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio | % | 37.0 | 40.5 | 41.3 |
--------------------------------------------------------------------------------
| Net interest-bearing debt | EUR | 199.8 | 172.6 | 179.9 |
| | million | | | |
--------------------------------------------------------------------------------
| Net gearing ratio | % | 132.3 | 107.1 | 109.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | EUR | 530.0 | 458.5 | 481.6 |
| | million | | | |
--------------------------------------------------------------------------------
| New agreements | | 140.6 | 91.3 | 396.1 |
--------------------------------------------------------------------------------
| Personnel on average | | 773 | 815 | 776 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Property, plant and equipment | EUR | 0.5 | 0.1 | 3.7 |
| investments | million | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | % | 0.5 | 0.1 | 0.9 |
| investments, % of revenue | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, share issue | EUR | -0.01 | 0.00 | 0.08 |
| adjusted | | | | |
--------------------------------------------------------------------------------
| Equity per share, share issue | EUR | 4.36 | 4.40 | 4.48 |
| adjusted | | | | |
--------------------------------------------------------------------------------
| Dividend per share, share issue | EUR | 0.12 | 0.12 | 0.12 |
| adjusted | | | | |
--------------------------------------------------------------------------------
| Dividend payout ratio | % | | | 150.0 |
--------------------------------------------------------------------------------
| Dividend yield | % | 1.9 | 4.0 | 2.0 |
--------------------------------------------------------------------------------
| Price per earnings ratio | | | | 73.6 |
--------------------------------------------------------------------------------
| Share price development | | | | |
--------------------------------------------------------------------------------
| Share price at the end of the | EUR | 6.41 | 3.00 | 5.89 |
| period | | | | |
--------------------------------------------------------------------------------
| Average share price | EUR | 5.95 | 3.47 | 4.06 |
--------------------------------------------------------------------------------
| Lowest share price | EUR | 5.50 | 2.76 | 2.75 |
--------------------------------------------------------------------------------
| Highest share price | EUR | 6.55 | 4.79 | 5.97 |
--------------------------------------------------------------------------------
| Market capitalisation at the | EUR | 216.9 | 108.6 | 210.7 |
| end of the period | million | | | |
--------------------------------------------------------------------------------
| Trading volume | 1.000 | 5 837 | 2 050 | 8 309 |
--------------------------------------------------------------------------------
| Trading volume | % | 17.2 | 5.7 | 23.1 |
--------------------------------------------------------------------------------
| Weighted average number of | 1.000 | 33 964 | 36 202 | 35 999 |
| shares outstanding | | | | |
--------------------------------------------------------------------------------
| Number of shares outstanding at | 1.000 | 33 843 | 36 197 | 35 768 |
| the end of the period | | | | |
--------------------------------------------------------------------------------
In calculating the key ratio only the profit for the period has been annualised
Calculation of key figures:
--------------------------------------------------------------------------------
| Net 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. - 31.12.2010: TABLES
Appendixes
1) Condensed consolidated financial statements: income statement, balance sheet,
statement of changes in equity, cash flow statement, commitments and contingent
liabilities, derivative contracts liabilities
2) Quarterly development
3) Segment information
4) Events after the reporting period
1. Group financials 1.1. - 31.12.2010
IFRS standards and operating segments
The interim report has been prepared in accordance with the accounting policies
set out in the IAS 34 standard and the information disclosed is unaudited. SRV
has applied the same accounting principles as in its year-end financial
statements for 2009. The figures in the tables have been rounded which should be
noted when counting the total sums.
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.
Estimate of the impacts of the new standards, changes and interpretations:
As from 1 January 2010, SRV Group will apply IFRIC 15 Agreements for the
Construction of Real Estate in its reporting. This interpretation concerns the
recognition of revenue from developer contracting projects. The interpretation
specifies whether revenue from a construction project should be recognised on a
percentage of completion basis or upon delivery. The adoption of the
interpretation primarily affects the recognition of revenue from SRV Group's
developer contracting housing projects. The Group previously recognised revenue
from developer contracting housing projects on a percentage of completion basis.
Under the new interpretation, revenue will from now on mainly be recognised on
the basis of project delivery.
The change in revenue recognition affects SRV Group's income statement and
balance sheet items, the key figures based on them, and the order backlog. It
will result in greater variation between quarterly trends in revenue and
earnings, as the recognition of revenue from developer contracting projects may
depend on the date of their completion. The delayed revenue recognition of
projects will increase the balance sheet total and weaken the key figures
calculated on the basis of the balance sheet.
SRV Group's internal management reporting follows earnings in line with the new
interpretation and the Group publishes its segment reports in accordance with
the new accounting principles.
--------------------------------------------------------------------------------
| Consolidated income | IFRS | IFRS | | | IFRS |
--------------------------------------------------------------------------------
| statement | 1-3/ | 1-3/ | change. | change. | 1-12/ |
| (EUR million) | 2010 | 2009 | MEUR | % | 2009 |
--------------------------------------------------------------------------------
| Revenue | 95.0 | 87.0 | 8.0 | 9.1 | 390.5 |
--------------------------------------------------------------------------------
| Other operating income | 0.8 | 0.5 | 0.3 | 65.0 | 2.6 |
--------------------------------------------------------------------------------
| Change in inventories of | 10.8 | 6.7 | 4.1 | 61.1 | -10.3 |
| finished goods and work in | | | | | |
| progress | | | | | |
--------------------------------------------------------------------------------
| Use of materials and | -89.7 | -77.1 | -12.7 | 16.5 | -313.5 |
| services | | | | | |
--------------------------------------------------------------------------------
| Employee benefit expenses | -11.7 | -11.6 | -0.2 | 1.3 | -44.5 |
--------------------------------------------------------------------------------
| Depreciation and | -0.8 | -0.9 | 0.1 | -9.1 | -3.7 |
| impairments | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -2.7 | -2.9 | 0.2 | -5.3 | -10.4 |
--------------------------------------------------------------------------------
| Operating profit | 1.6 | 1.8 | -0.2 | -12.9 | 10.7 |
--------------------------------------------------------------------------------
| Financial income | 0.6 | 0.7 | -0.1 | -9.1 | 6.0 |
--------------------------------------------------------------------------------
| Financial expenses | -2.0 | -2.2 | 0.1 | -6.4 | -10.2 |
--------------------------------------------------------------------------------
| Financial income and | -1.4 | -1.5 | | | -4.2 |
| expenses. total | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 0.2 | 0.3 | -0.2 | -49.4 | 6.5 |
--------------------------------------------------------------------------------
| Income taxes | -0.8 | -0.4 | -0.4 | 111.8 | -3.6 |
--------------------------------------------------------------------------------
| Net profit for the period | -0.7 | -0.1 | -0.6 | 871.9 | 2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | -0.4 | 0.0 | | | 2.9 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | -0.2 | -0.1 | | | 0.0 |
--------------------------------------------------------------------------------
| Earnings per share | -0.01 | 0.00 | | | 0.08 |
| 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/ |
| (EUR million) | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net profit for the period | -0.7 | -0.1 | 2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items recognised directly in equity: | | | |
--------------------------------------------------------------------------------
| Exchange differences on translating foreign | 0.0 | 0.0 | 0.0 |
| operations | | | |
--------------------------------------------------------------------------------
| Available for sale financial assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| 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 | 0.0 | 0.0 | 0.0 |
| net of tax | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the period | -0.7 | -0.1 | 2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | -0.5 | 0.0 | 2.9 |
--------------------------------------------------------------------------------
| Minority interest | -0.2 | -0.1 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | % | 31.12.09 |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 15.9 | 18.3 | -12.8 | 16.3 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 1.7 | 1.7 | 0.0 | 1.7 |
--------------------------------------------------------------------------------
| Other intangible assets | 0.4 | 0.5 | -13.3 | 0.5 |
--------------------------------------------------------------------------------
| Other financial assets | 4.8 | 4.3 | 12.5 | 4.8 |
--------------------------------------------------------------------------------
| Receivables | 17.2 | 7.3 | 135.2 | 16.2 |
--------------------------------------------------------------------------------
| Deferred tax assets | 4.6 | 1.9 | 144.7 | 2.3 |
--------------------------------------------------------------------------------
| Non-current assets, total | 44.7 | 34.0 | 31.6 | 41.7 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 303.9 | 307.5 | -1.2 | 292.2 |
--------------------------------------------------------------------------------
| Trade and other receivables | 71.5 | 61.4 | 16.4 | 76.9 |
--------------------------------------------------------------------------------
| Current tax receivables | 3.2 | 5.7 | -44.5 | 1.9 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 6.6 | 8.6 | -22.6 | 5.2 |
--------------------------------------------------------------------------------
| Current assets, total | 385.3 | 383.2 | 0.5 | 376.2 |
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 430.0 | 417.2 | 3.1 | 418.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | % | 31.12.09 |
--------------------------------------------------------------------------------
| 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 | -0.1 | 0.0 | 114.4 | -0.1 |
--------------------------------------------------------------------------------
| Fair value reserve | -0.1 | -0.1 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Retained earnings | 57.2 | 68.8 | -16.9 | 69.9 |
--------------------------------------------------------------------------------
| Equity attributable to | 147.5 | 159.1 | -7.3 | 160.1 |
| equity holders of the parent | | | | |
| company, total | | | | |
--------------------------------------------------------------------------------
| Minority interest | 3.5 | 2.0 | 73.5 | 3.8 |
--------------------------------------------------------------------------------
| Equity, total | 151.0 | 161.2 | -6.3 | 163.9 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1.1 | 0.2 | 378.3 | 0.5 |
--------------------------------------------------------------------------------
| Provisions | 4.7 | 4.9 | -3.4 | 4.8 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 62.4 | 83.5 | -25.3 | 96.9 |
--------------------------------------------------------------------------------
| Other liabilities | 0.8 | 0.4 | 98.8 | 0.8 |
--------------------------------------------------------------------------------
| Non-current liabilities, | 69.0 | 89.0 | -22.5 | 102.9 |
| total | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 58.0 | 56.8 | 2.1 | 56.4 |
--------------------------------------------------------------------------------
| Current tax payables | 3.5 | 8.7 | -59.4 | 2.6 |
--------------------------------------------------------------------------------
| Provisions | 4.3 | 3.9 | 12.3 | 3.8 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 144.1 | 97.7 | 47.5 | 88.2 |
--------------------------------------------------------------------------------
| Current liabilities, total | 210.0 | 167.0 | 25.7 | 151.1 |
--------------------------------------------------------------------------------
| Liabilities, total | 279.0 | 256.0 | 9.0 | 254.1 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 430.0 | 417.2 | 3.1 | 418.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | | |
--------------------------------------------------------------------------------
| Net profit for the period | -0.7 | -0.1 | 2.9 |
--------------------------------------------------------------------------------
| Adjustments: | | | |
--------------------------------------------------------------------------------
| Depreciation and impairments | 0.8 | 0.9 | 3.7 |
--------------------------------------------------------------------------------
| Non-cash transactions | 9.4 | -0.8 | 2.7 |
--------------------------------------------------------------------------------
| Financial income and expenses | 1.4 | 1.5 | 4.2 |
--------------------------------------------------------------------------------
| Capital gains on sales of tangible and | 0.0 | 0.0 | 0.0 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Income taxes | 0.8 | 0.4 | 3.6 |
--------------------------------------------------------------------------------
| Adjustments, total | 12.5 | 2.0 | 14.1 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Changes in working capital: | | | |
--------------------------------------------------------------------------------
| Change in loan receivables | -3.0 | -0.9 | -13.5 |
--------------------------------------------------------------------------------
| Change in trade and other receivables | 9.2 | 24.9 | 17.7 |
--------------------------------------------------------------------------------
| Change in inventories | -11.4 | -7.2 | 10.0 |
--------------------------------------------------------------------------------
| Change in trade and other payables | -7.8 | -15.6 | -12.3 |
--------------------------------------------------------------------------------
| Changes in working capital, total | -12.9 | 1.3 | 1.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest paid | -1.4 | -4.1 | -12.7 |
--------------------------------------------------------------------------------
| Interest received | 1.0 | 0.5 | 5.7 |
--------------------------------------------------------------------------------
| Dividends received | -2.6 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income taxes paid | -3.0 | -0.3 | -5.9 |
--------------------------------------------------------------------------------
| | -5.9 | -3.9 | -12.9 |
--------------------------------------------------------------------------------
| Net cash flow from operating | -7.1 | -0.8 | 6.1 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of | 0.0 | 0.0 | -2.3 |
| cash | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | -0.5 | -0.1 | -0.8 |
--------------------------------------------------------------------------------
| Intangible assets | 0.0 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Other financial assets | 0.0 | 0.0 | -0.5 |
--------------------------------------------------------------------------------
| Sale of property, plant and equipment | 0.0 | 0.0 | 0.0 |
| and intangible assets | | | |
--------------------------------------------------------------------------------
| Sale of financial assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -0.5 | -0.1 | -3.7 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flows from financing activities | | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from loans | 0.0 | 14.1 | 19.6 |
--------------------------------------------------------------------------------
| Repayments of loans | -0.3 | -0.1 | -22.2 |
--------------------------------------------------------------------------------
| Change in loan receivables | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Change in housing corporation loans | -6.8 | 4.3 | -9.2 |
--------------------------------------------------------------------------------
| Change in credit limits | 20.1 | -12.2 | 17.5 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | 0.0 | 0.0 | -1.8 |
--------------------------------------------------------------------------------
| Dividends paid | -4.1 | 0.0 | -4.4 |
--------------------------------------------------------------------------------
| Net cash from financing activities | 8.9 | 6.1 | -0.6 |
--------------------------------------------------------------------------------
| Net change in cash and cash | 1.4 | 5.2 | 1.8 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 5.2 | 3.4 | 3.4 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end | 6.6 | 8.6 | 5.2 |
| of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | % | 31.12.09 |
--------------------------------------------------------------------------------
| Raw materials and consumables | 0.1 | 0.0 | 416.9 | 0.0 |
--------------------------------------------------------------------------------
| Work in progress | 39.7 | 108.0 | -63.3 | 35.1 |
--------------------------------------------------------------------------------
| Land areas and plot-owning | 165.9 | 144.2 | 15.0 | 153.0 |
| companies | | | | |
--------------------------------------------------------------------------------
| Shares in completed housing | 80.6 | 37.6 | 114.3 | 86.5 |
| corporations and real estate | | | | |
| companies | | | | |
--------------------------------------------------------------------------------
| Advance payments | 3.6 | 3.5 | 2.7 | 3.6 |
--------------------------------------------------------------------------------
| Other inventories | 14.1 | 14.2 | -0.5 | 14.0 |
--------------------------------------------------------------------------------
| Inventories, total | 303.9 | 307.5 | -1.2 | 292.2 |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 31.3.2010
--------------------------------------------------------------------------------
| | 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. | 69.9 | 160. | 3.8 | 163.9 |
| 1.1.2010 | | | | | 1 | | 1 | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.5 | -0.5 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.1 | -4.1 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 0.6 | 0.6 | | |
| incentive | | | | | | | | | |
| scheme | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -8.5 | -8.5 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Other change | | | | | | -0.2 | -0.2 | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0. | 57.2 | 147. | 3.5 | 151.0 |
| 31.3.2010 | | | | | 1 | | 5 | | |
--------------------------------------------------------------------------------
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. | 73.4 | 163. | 2.2 | 165.9 |
| 1.1.2009 | | | | | 1 | | 6 | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.3 | -4.3 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 0.0 | 0.0 | | |
| incentive | | | | | | | | | |
| scheme | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | 0.0 | 0.0 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Other change | | | | | | -0.2 | -0.2 | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0. | 68.9 | 159. | 2.0 | 161.2 |
| 31.3.2009 | | | | | 1 | | 1 | | |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 31.12.2009
--------------------------------------------------------------------------------
| | 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. | 73.4 | 163. | 2.2 | 165.9 |
| 1.1.2009 | | | | | 1 | | 6 | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 2.9 | 2.9 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.3 | -4.3 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 0.0 | 0.0 | | |
| incentive | | | | | | | | | |
| scheme | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -1.8 | -1.8 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Other change | | | | | | -0.2 | -0.2 | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0. | 69.9 | 160. | 3.8 | 163.9 |
| 31.12.2009 | | | | | 1 | | 2 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments and contingent | IFRS | IFRS | change. | IFRS |
| liabilities | | | | |
--------------------------------------------------------------------------------
| EUR million | 31.3.10 | 31.3.09 | % | 31.12.09 |
--------------------------------------------------------------------------------
| Collateral given for own | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Real estate mortgages given | 73.8 | 125.7 | -41.3 | 106.0 |
--------------------------------------------------------------------------------
| Pledges given | 0.0 | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | | | | |
--------------------------------------------------------------------------------
| Guarantees given for liabilities | 0.0 | 0.0 | | 0.0 |
| on uncompleted projects | | | | |
--------------------------------------------------------------------------------
| Investment commitments given | 22.0 | 2.2 | 11.4 | 22.1 |
--------------------------------------------------------------------------------
| Plots purchase commitments | 27.5 | 48.9 | | 21.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair and nominal | IFRS | IFRS | IFRS |
| values of | 3/2010 | 3/2009 | 12/2009 |
| derivative | | | |
| instruments | | | |
--------------------------------------------------------------------------------
| (EUR million) | Fair Values | Fair Values | (EUR million) |
--------------------------------------------------------------------------------
| Hedge accounting not | Posit | Negati | Positi | Negativ | Positi | Negativ |
| applied | ive | ve | ve | e | ve | e |
--------------------------------------------------------------------------------
| Foreign exchange | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 0.0 | 1.5 | 0.0 | 0.0 | 0.0 | 0.7 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Nominal values of | | IFRS | | IFRS | | IFRS |
| derivative | | | | | | |
| instruments | | | | | | |
--------------------------------------------------------------------------------
| | | 3/2010 | | 3/2009 | | 12/2009 |
--------------------------------------------------------------------------------
| Foreign exchange | | 0.0 | | 0.0 | | 0.0 |
| forward contracts | | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | | 63.4 | | 22.4 | | 63.4 |
--------------------------------------------------------------------------------
| 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) | 1-3/1 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 0 | 2/09 | 09 | 9 | 9 | | | |
--------------------------------------------------------------------------------
| Revenue | 95.0 | 120. | 87.3 | 96.0 | 87.0 | | | |
| | | 1 | | | | | | |
--------------------------------------------------------------------------------
| Operating | 1.6 | 2.7 | 2.3 | 3.9 | 1.8 | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | -1.4 | -0.5 | -1.2 | -1.0 | -1.5 | | | |
| income and | | | | | | | | |
| expenses, | | | | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 0.2 | 2.2 | 1.1 | 2.9 | 0.3 | | | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 530.0 | 481. | 465. | 461.1 | 458.5 | | | |
| 1) | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
| New agreements | 140.6 | 120. | 86.2 | 98.2 | 91.3 | | | |
| | | 4 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.03 | 0.01 | 0.04 | 0.00 | | | |
| share, eur | | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 4.36 | 4.48 | 4.45 | 4.44 | 4.40 | | | |
| share, eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Share price, | 6.41 | 5.89 | 5.64 | 4.18 | 3.00 | | | |
| eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, | 37.0 | 41.3 | 40.9 | 40.1 | 40.5 | | | |
| % 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Net interest | 199.8 | 179. | 189. | 186.8 | 172.6 | | | |
| bearing debt | | 9 | 8 | | | | | |
| 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Net gearing | 132.3 | 109. | 116. | 116.6 | 107.1 | | | |
| ratio, % 1) | | 8 | 3 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/1 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 0 | 2/09 | 09 | 9 | 9 | | | |
--------------------------------------------------------------------------------
| Business | 54.7 | 66.9 | 40.2 | 46.1 | 54.8 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 38.3 | 49.9 | 39.7 | 42.4 | 26.6 | | | |
--------------------------------------------------------------------------------
| International | 2.0 | 3.4 | 7.4 | 7.6 | 5.6 | | | |
--------------------------------------------------------------------------------
| Other | 2.5 | 2.3 | 2.1 | 2.1 | 2.2 | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -2.5 | -2.3 | -2.1 | -2.1 | -2.2 | | | |
--------------------------------------------------------------------------------
| Group, total | 95.0 | 120. | 87.3 | 96.0 | 87.0 | | | |
| | | 1 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/1 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 0 | 2/09 | 09 | 9 | 9 | | | |
--------------------------------------------------------------------------------
| Business | 4.3 | 4.3 | 3.1 | 4.6 | 5.9 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 2.4 | 1.9 | 1.3 | 2.3 | -0.1 | | | |
--------------------------------------------------------------------------------
| International | -3.9 | -2.0 | -1.3 | -1.9 | -2.5 | | | |
--------------------------------------------------------------------------------
| Other | -1.2 | -1.4 | -0.7 | -1.0 | -1.6 | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -0.1 | -0.2 | -0.1 | 0.0 | 0.0 | | | |
--------------------------------------------------------------------------------
| Group, total | 1.6 | 2.7 | 2.3 | 3.9 | 1.8 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (%) | 1-3/1 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| | 0 | 2/09 | 09 | 9 | 9 | | | |
--------------------------------------------------------------------------------
| Business | 7.9 | 6.5 | 7.7 | 10.0 | 10.8 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 6.3 | 3.8 | 3.4 | 5.3 | -0.4 | | | |
--------------------------------------------------------------------------------
| International | -197. | -58. | -17. | -25.6 | -44.4 | | | |
| | 5 | 4 | 6 | | | | | |
--------------------------------------------------------------------------------
| Group, total | 1.6 | 2.2 | 2.6 | 4.1 | 2.1 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3. | 31.1 | 30.9 | 30.6. | 31.3. | | | |
| | 10 | 2.09 | .09 | 09 | 09 | | | |
--------------------------------------------------------------------------------
| Business | 331.7 | 255. | 252. | 224.3 | 252.8 | | | |
| Premises | | 3 | 0 | | | | | |
--------------------------------------------------------------------------------
| Housing | 174.3 | 201. | 187. | 206.1 | 174.3 | | | |
| | | 7 | 5 | | | | | |
--------------------------------------------------------------------------------
| International | 24.0 | 24.6 | 26.3 | 30.7 | 31.5 | | | |
--------------------------------------------------------------------------------
| Group, total | 530.0 | 481. | 465. | 461.1 | 458.5 | | | |
| | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
| - sold order | 389 | 317 | 325 | 306 | 291 | | | |
| backlog | | | | | | | | |
--------------------------------------------------------------------------------
| - unsold order | 141 | 165 | 141 | 155 | 168 | | | |
| backlog | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested | IFRS | IFRS | IFRS | IFRS | IFRS | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3. | 31.1 | 30.9 | 30.6. | 31.3. | | | |
| | 10 | 2.09 | .09 | 09 | 09 | | | |
--------------------------------------------------------------------------------
| Business | 56.2 | 42.0 | 61.0 | 77.0 | 69.2 | | | |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 121.6 | 122. | 124. | 137.0 | 136.7 | | | |
| | | 9 | 1 | | | | | |
--------------------------------------------------------------------------------
| International | 173.6 | 176. | 165. | 152.0 | 150.5 | | | |
| | | 3 | 6 | | | | | |
--------------------------------------------------------------------------------
| Other and | 6.0 | 7.7 | 6.2 | -12.2 | -14.0 | | | |
| eliminations | | | | | | | | |
--------------------------------------------------------------------------------
| Group, total | 357.5 | 349. | 356. | 353.8 | 342.3 | | | |
| | | 0 | 9 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Residential | | | | | | | | |
| production | | | | | | | | |
--------------------------------------------------------------------------------
| in Finland | 1-3/1 | 10-1 | 7-9/ | 4-6/0 | 1-3/0 | | | |
| (units) | 0 | 2/09 | 09 | 9 | 9 | | | |
--------------------------------------------------------------------------------
| Start-ups | 0 | 247 | 0 | 0 | 4 | | | |
--------------------------------------------------------------------------------
| Sold | 95 | 86 | 43 | 51 | 27 | | | |
--------------------------------------------------------------------------------
| Completed 1) | 16 | 64 | 37 | 93 | 58 | | | |
--------------------------------------------------------------------------------
| Completed and | 138 | 171 | 161 | 185 | 156 | | | |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Under | 247 | 263 | 80 | 118 | 211 | | | |
| construction 1 | | | | | | | | |
--------------------------------------------------------------------------------
| - of which | 169 | 231 | 79 | 100 | 180 | | | |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
1) at the end of the period
3. Segment information
--------------------------------------------------------------------------------
| Assets | IFRS | IFRS | change. | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | MEUR | % | 31.12.09 |
--------------------------------------------------------------------------------
| Business Premises | 89.8 | 90.7 | -0.9 | -1.0 | 88.7 |
--------------------------------------------------------------------------------
| Housing | 148.1 | 156.7 | -8.6 | -5.5 | 151.5 |
--------------------------------------------------------------------------------
| International | 178.4 | 157.4 | 21.0 | 13.3 | 182.5 |
--------------------------------------------------------------------------------
| Other Operations | 214.8 | 171.3 | 43.4 | 25.3 | 214.5 |
--------------------------------------------------------------------------------
| Eliminations | -201.1 | -159.0 | -42.1 | | -219.3 |
--------------------------------------------------------------------------------
| Group, total | 430.0 | 417.2 | 12.8 | 3.1 | 418.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | IFRS | IFRS | change. | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | MEUR | % | 31.12.09 |
--------------------------------------------------------------------------------
| Business Premises | 70.6 | 50.7 | 19.9 | 39.2 | 55.5 |
--------------------------------------------------------------------------------
| Housing | 128.3 | 142.2 | -14.0 | -9.8 | 133.2 |
--------------------------------------------------------------------------------
| International | 183.0 | 160.3 | 22.7 | 14.2 | 181.7 |
--------------------------------------------------------------------------------
| Other Operations | 103.2 | 64.1 | 39.2 | 61.1 | 79.2 |
--------------------------------------------------------------------------------
| Eliminations | -206.1 | -161.2 | -44.9 | | -195.6 |
--------------------------------------------------------------------------------
| Group, total | 279.0 | 256.0 | 22.9 | 9.0 | 254.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital | IFRS | IFRS | change. | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.10 | 31.3.09 | MEUR | % | 31.12.09 |
--------------------------------------------------------------------------------
| Business Premises | 56.2 | 69.2 | -13.0 | -18.8 | 42.0 |
--------------------------------------------------------------------------------
| Housing | 121.6 | 136.7 | -15.0 | -11.0 | 122.9 |
--------------------------------------------------------------------------------
| International | 173.6 | 150.5 | 23.1 | 15.4 | 176.3 |
--------------------------------------------------------------------------------
| Eliminations and other | 6.0 | -14.0 | 20.1 | | 7.7 |
--------------------------------------------------------------------------------
| Group, total | 357.5 | 342.3 | 15.2 | 4.4 | 349.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change. | IFRS |
--------------------------------------------------------------------------------
| (MEUR) | 31.3.10 | 31.3.09 | MEUR | 31.12.09 |
--------------------------------------------------------------------------------
| Land areas and plot-owning | 165.9 | 144.2 | 21.7 | 153.0 |
| companies | | | | |
--------------------------------------------------------------------------------
| Business Premises | 27.8 | 25.0 | 2.8 | 27.8 |
--------------------------------------------------------------------------------
| Housing | 54.3 | 42.1 | 12.2 | 41.4 |
--------------------------------------------------------------------------------
| International | 83.5 | 77.0 | 6.5 | 83.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Work in progress | 39.7 | 108.0 | -68.3 | 35.1 |
--------------------------------------------------------------------------------
| Business Premises | 0.0 | 30.6 | -30.6 | 0.0 |
--------------------------------------------------------------------------------
| Housing | 21.0 | 61.4 | -40.4 | 21.2 |
--------------------------------------------------------------------------------
| International | 18.7 | 15.9 | 2.8 | 14.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares in completed housing | 80.6 | 37.6 | 43.0 | 86.5 |
| corporations and real estate | | | | |
| companies | | | | |
--------------------------------------------------------------------------------
| Business Premises | 25.6 | 0.0 | 25.6 | 25.5 |
--------------------------------------------------------------------------------
| Housing | 50.1 | 34.2 | 15.9 | 55.5 |
--------------------------------------------------------------------------------
| International | 4.9 | 3.3 | 1.6 | 5.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other inventories | 17.7 | 17.7 | 0.1 | 17.6 |
--------------------------------------------------------------------------------
| Business Premises | 5.1 | 5.0 | 0.0 | 5.1 |
--------------------------------------------------------------------------------
| Housing | 4.0 | 4.4 | -0.3 | 3.7 |
--------------------------------------------------------------------------------
| International | 9.7 | 9.3 | 0.4 | 9.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories, total | 303.9 | 307.5 | -3.5 | 292.2 |
--------------------------------------------------------------------------------
| Business Premises | 58.5 | 60.7 | -2.2 | 58.4 |
--------------------------------------------------------------------------------
| Housing | 129.4 | 142.1 | -12.7 | 121.7 |
--------------------------------------------------------------------------------
| International | 116.7 | 105.5 | 11.2 | 112.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business Premises | IFRS | IFRS | change. | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/200 | MEUR | % | 1-12/2009 |
| | | 9 | | | |
--------------------------------------------------------------------------------
| Revenue | 54.7 | 54.8 | -0.1 | -0.2 | 208.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 4.3 | 5.9 | -1.6 | -27.3 | 18.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 0.8 | 0.9 | -0.1 | -8.0 | 0.9 |
--------------------------------------------------------------------------------
| Current assets | 89.0 | 89.8 | -0.9 | -1.0 | 87.8 |
--------------------------------------------------------------------------------
| Total assets | 89.8 | 90.7 | -0.9 | -1.0 | 88.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 1.1 | 11.2 | -10.1 | -90.3 | 11.0 |
--------------------------------------------------------------------------------
| Current liabilities | 69.5 | 39.5 | 30.0 | 76.0 | 44.5 |
--------------------------------------------------------------------------------
| Total liabilities | 70.6 | 50.7 | 19.9 | 39.2 | 55.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end | 56.2 | 69.2 | -13.0 | -18.8 | 42.0 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, | 36.8 | 36.4 | | | 35.2 |
| %1) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 331.7 | 252.8 | 79.0 | 31.2 | 255.3 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing | IFRS | IFRS | change. | change. | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/200 | MEUR | % | 1-12/2009 |
| | | 9 | | | |
--------------------------------------------------------------------------------
| Revenue | 38.3 | 26.6 | 11.7 | 43.9 | 158.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 2.4 | -0.1 | 2.5 | | 5.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 1.3 | 1.8 | -0.5 | -27.0 | 1.4 |
--------------------------------------------------------------------------------
| Current assets | 146.8 | 154.9 | -8.1 | -5.2 | 150.1 |
--------------------------------------------------------------------------------
| Total assets | 148.1 | 156.7 | -8.6 | -5.5 | 151.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 47.7 | 63.7 | -16.0 | -25.1 | 68.2 |
--------------------------------------------------------------------------------
| Current liabilities | 80.6 | 78.6 | 2.1 | 2.6 | 65.0 |
--------------------------------------------------------------------------------
| Total liabilities | 128.3 | 142.2 | -14.0 | -9.8 | 133.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end | 121.6 | 136.7 | -15.0 | -11.0 | 122.9 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Return on investment, | 7.9 | -0.3 | | | 4.2 |
| %1) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 174.3 | 174.3 | 0.1 | 0.0 | 201.7 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| International | IFRS | IFRS | change. | change. | IFRS |
| Operations | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/200 | MEUR | % | 1-12/2009 |
| | | 9 | | | |
--------------------------------------------------------------------------------
| Revenue | 2.0 | 5.6 | -3.6 | -65.0 | 24.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -3.9 | -2.5 | -1.4 | | -7.7 |
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| Segment's assets | | | | | |
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| Non-current assets | 26.0 | 16.6 | 9.4 | 56.4 | 25.1 |
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| Current assets | 152.3 | 140.7 | 11.6 | 8.2 | 157.4 |
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| Total assets | 178.4 | 157.4 | 21.0 | 13.3 | 182.5 |
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| Segment's liabilities | | | | | |
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| Non-current liabilities | 14.0 | 10.1 | 3.9 | 38.7 | 18.4 |
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| Current liabilities | 169.0 | 150.2 | 18.8 | 12.5 | 163.4 |
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| Total liabilities | 183.0 | 160.3 | 22.7 | 14.2 | 181.7 |
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| Invested capital at end | 173.6 | 150.5 | 23.1 | 15.4 | 176.3 |
| of period | | | | | |
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| Return on investment, | -8.0 | -5.4 | | | -1.4 |
| %1) | | | | | |
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| Order backlog at end of | 24.0 | 31.5 | -7.5 | -24.0 | 24.6 |
| period | | | | | |
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1) In calculating the key ratio only the profit for the period has been
annualised
