SRV'S REVENUE GREW - SRV'S FINANCIAL STATEMENT RELEASE 1 JAN. - 31 DEC. 2009
SRV GROUP PLC FINANCIAL STATEMENT RELEASE 11 February 2010, 8.30 a.m. EET
Reporting period 1 January - 31 December 2009 in brief:
- SRV's revenue was EUR 385.0 million (EUR 537.0 million in January-December
2008), change 28.3% negative
- Operating profit was EUR 9.9 million (EUR 32.9 million), change 69.8% negative
- Profit before taxes was EUR 5.8 million (EUR 23.7 million), change 75.6%
negative
- The order backlog at the close of the review period was EUR 480.6 million (EUR
455.3 million), change 5.6%
- New contracts EUR 396.1 million (EUR 399.1 million), change 0.8% negative
- The equity ratio was 41.3 per cent (41.3%)
- Earnings per share were EUR 0.06 (EUR 0.43)
- Proposed divided EUR 0.12 (EUR 0.12) per share
Fourth quarter 1 October - 31 December 2009 in brief:
- Revenue amounted to EUR 120.1 million (EUR 121.4 million in October - December
2008)
- Operating profit was EUR 2.8 million (EUR 0.7 million)
- Profit before taxes was EUR 2.3 million (EUR -2.6 million)
- Earnings per share were EUR 0.02 (EUR -0.06)
“As a result of the recession in the construction business, SRV's revenue
declined but financial result is clearly positive, even though it is on an
unsatisfactory level. In the difficult market situation, we have invested in
customer acquisition. We have been able to increase our order backlog by 5.6 per
cent, and the volume of new contracts remains at almost the previous year's
level. The Group's costs have been adjusted due to the lower volume.
The operational profitability of SRV's Business Premises business area remained
on a good level, even though revenue and operating profit fell from the
corresponding period a year earlier. The order backlog remained almost on the
previous year's level. SRV's strong competence supports the profitable
implementation of current projects and facilitates customer acquisition in tight
market conditions.
The revenue and operating profit of the Housing business area increased thanks
to the growth in contract production volumes and housing sales. SRV sold a total
of 530 housing units to consumers and, through negotiated contracts, to
investors (205 units in 2008). Housing sales to consumers picked up,
particularly in the final quarter when 86 housing units were sold (13 in
October-December 2008), and SRV decided to start the construction of a total of
247 developer contracting housing projects at the year-end. The order backlog
grew thanks to contracts won and to new developer contracting housing projects.
The market situation in Russia has pushed back both customers' and SRV's
projects. The fund established in early June with VTB Capital and Deutsche Bank
is a step towards implementing SRV's growth strategy in Russia. This arrangement
gives SRV the opportunity to be the project management contractor in numerous
significant construction projects in major Russian cities. SRV views its growth
potential in Russia as good, and continues to invest in development projects.
Net operational cash flow showed a marked improvement and was EUR 3.6 million
positive. Net cash flow in the comparison year 2008 was EUR 103.2 million
negative due to the considerable increase in inventories.
During the final quarter, we focused strongly on our personnel's professional
and supervisory skills. The objective of the training programs is to take full
advantage of the group's best practices and the latest know-how in the industry
in all business operations.
SRV's healthy solvency and strong financial position support 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 | IFRS |
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| (EUR million) | 1-12/ | 1-12 | change | change | 10-12/ | 10-12/ |
| | 2009 | / | , MEUR | ,% | 2009 | 2008 |
| | | 2008 | | | | |
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| Revenue | 385.0 | 537. | -152.0 | -28.3 | 120.1 | 121.4 |
| | | 0 | | | | |
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| Operating profit | 9.9 | 32.9 | -23.0 | -69.8 | 2.8 | 0.7 |
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| Financial income and | -4.2 | -9.2 | 5.0 | | -0.5 | -3.3 |
| expenses, total | | | | | | |
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| Profit before taxes | 5.8 | 23.7 | -17.9 | -75.6 | 2.3 | -2.6 |
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| Order backlog | 480.6 | 455. | 25.3 | 5.6 | | |
| | | 3 | | | | |
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| New agreements | 396.1 | 399. | -3.1 | -0.8 | 121.1 | 115.4 |
| | | 1 | | | | |
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| Operating profit, % | 2.6 | 6.1 | | | 2.3 | 0.6 |
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| Net profit, % | 0.6 | 2.8 | | | 0.8 | -2.3 |
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| Equity ratio, % | 41.3 | 41.3 | | | | |
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| Net interest bearing | 180.7 | 169. | | | | |
| debt | | 4 | | | | |
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| Net gearing ratio, % | 110.1 | 101. | | | | |
| | | 7 | | | | |
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| Return on investment, % | 4.7 | 12.9 | | | | |
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| Return on equity, % | 1.4 | 9.4 | | | | |
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| | | | | | | |
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| Earnings per share, EUR | 0.06 | 0.43 | | | 0.02 | -0.06 |
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| Equity per share, EUR | 4.48 | 4.54 | | | | |
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| Weighted average number | 36.0 | 36.5 | | | | |
| of shares outstanding | | | | | | |
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Consolidated revenue was EUR 385.0 million (EUR 537.0 million in
January-December 2008). The share of revenue generated in Finland was 94 per
cent (89%), whereas 6 per cent (11%) came from Russia and the Baltic countries.
Revenue in the Business Premises business area was EUR 208.0 million (EUR 349.1
million). Revenue in the Housing business area was EUR 154.1 million (EUR 127.9
million). Revenue in the International business area was EUR 22.9 million (EUR
60.1 million).
The Group's operating profit was EUR 9.9 million (EUR 32.9 million in
January-December 2008). Operating profit margin was 2.6 per cent (6.1%).
Operating profit in the Business Premises business area was EUR 18.0 million
(EUR 27.8 million). Operating profit in the Housing business area was EUR 4.9
million (EUR 0.7 million). Operating loss in the International business area was
EUR 7.9 million (operating profit of EUR 9.2 million).
The Group's profit before taxes was EUR 5.8 million (EUR 23.7 million in
January-December 2008). Net profit for the review period was EUR 2.3 million
(EUR 15.3 million). Earnings per share were EUR 0.06 (EUR 0.43). Return on
equity was 1.4 per cent (9.4%) and return on investment was 4.7 per cent
(12.9%).
The Group's revenue for the fourth quarter was EUR 120.1 million (EUR 121.4
million in October-December 2008) and operating profit was EUR 2.8 million (EUR
0.7 million). Profit before taxes was EUR 2.3 million (EUR -2.6 million).
Earnings per share were EUR 0.02 (EUR -0.06).
The order backlog was EUR 480.6 million on 31 December 2009 (EUR 455.2 million
on 31 December 2008). The share of order backlog which has been sold
(construction contracts and sold developer contracting production) amounted to
EUR 316 million (EUR 280 million on 31 Dec. 2008), and the unsold share amounted
to EUR 165 million (EUR 176 million). Value of new contracts signed during the
review period was EUR 396.1 million (EUR 399.1 million in January-December
2008).
Key figures for the Segments
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| | IFRS | IFRS | | | IFRS | IFRS |
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| Revenue | 1-12/ | 1-12/ | change | change | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | , MEUR | ,% | 2009 | 2008 |
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| Business Premises | 208.0 | 349.1 | -141.1 | -40.4 | 66.9 | 77.9 |
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| Housing | 154.1 | 127.9 | 26.3 | 20.5 | 49.9 | 33.3 |
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| International | 22.9 | 60.1 | -37.2 | -61.9 | 3.4 | 10.2 |
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| Other Operations | 8.7 | 11.5 | -2.8 | -24.1 | 2.3 | 3.0 |
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| Eliminations | -8.8 | -11.6 | 2.8 | | -2.3 | -3.1 |
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| Group, total | 385.0 | 537.0 | -152.0 | -28.3 | 120.1 | 121.4 |
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| | IFRS | IFRS | | | IFRS | IFRS |
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| Operating profit | 1-12/ | 1-12/ | change | change | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | , MEUR | ,% | 2009 | 2008 |
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| Business Premises | 18.0 | 27.8 | -9.8 | -35.4 | 4.3 | 6.0 |
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| Housing | 4.9 | 0.7 | 4.2 | 590.1 | 2.0 | -1.2 |
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| International | -7.9 | 9.2 | -17.1 | -185.4 | -2.0 | -2.7 |
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| Other Operations | -4.7 | -4.9 | 0.2 | | -1.4 | -1.4 |
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| Eliminations | -0.3 | 0.1 | -0.4 | -462.2 | -0.2 | 0.0 |
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| Group, total | 9.9 | 32.9 | -23.0 | -69.8 | 2.8 | 0.7 |
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| Operating profit | IFRS | IFRS | IFRS | IFRS |
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| (%) | 1-12/2009 | 1-12/2008 | 10-12/2009 | 10-12/2008 |
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| Business Premises | 8.6 | 8.0 | 6.5 | 7.8 |
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| Housing | 3.2 | 0.6 | 4.0 | -3.6 |
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| International | -34.4 | 15.4 | -58.4 | -26.5 |
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| Group, total | 2.6 | 6.1 | 2.3 | 0.6 |
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| Order backlog | IFRS | IFRS | change, | change, |
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| (EUR million) | 31.12.09 | 31.12.08 | MEUR | % |
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| Business Premises | 255.3 | 265.7 | -10.4 | -3.9 |
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| Housing | 200.7 | 154.0 | 46.7 | 30.3 |
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| International | 24.6 | 35.6 | -11.0 | -31.0 |
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| Group, total | 480.6 | 455.3 | 25.3 | 5.6 |
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| - sold order backlog | 316 | 280 | | |
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| - unsold order backlog | 165 | 176 | | |
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Earnings trends of the Segments
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| | IFRS | IFRS | | | IFRS | IFRS |
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| Business Premises | 1-12/ | 1-12/ | change, | change, | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | MEUR | % | 2009 | 2008 |
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| Revenue | 208.0 | 349.1 | -141.1 | -40.4 | 66.9 | 77.9 |
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| Operating profit | 18.0 | 27.8 | -9.8 | -35.4 | 4.3 | 6.0 |
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| Operating profit, % | 8.6 | 8.0 | | | 6.5 | 7.8 |
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| Order backlog | 255.3 | 265.7 | -10.4 | -3.9 | | |
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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 208.0 million (EUR 349.1
million). The decrease in revenue could be attributed to the general decline in
construction volumes, and to the volume of around EUR 39 million relating to the
extension project of the Stockmann department store not being recognised as
SRV's revenue. Operating profit was EUR 18.0 million (EUR 27.8 million).
Operating profit margin rose to 8.6 per cent (8.0%). The order backlog was EUR
255.3 million (EUR 265.7 million).
Fourth-quarter revenue was EUR 66.9 million (EUR 77.9 million) and operating
profit was EUR 4.3million (EUR 6.0 million). A property transaction worth EUR
8.5 million was closed during the quarter.
Projects completed during the review period included the renovation of the
office building at Hakaniemenranta 6 in Helsinki as well as the construction and
renovation of Svenska Social & Kommunal Högskolan at Snellmaninkatu 6 in
Helsinki for Senate Properties, production premises for Caternet in the Kivikko
district in Vantaa, and HTC office buildings in the Keilaniemi district in
Espoo. STC (Smart Tech Centre) concept office buildings were completed in
Porvoo's King's Gate area and at Koivuhaantie in Vantaa. The Plantagen garden
store with office was also completed in Porvoo's King's Gate are, as well as a
retail centre of 20,000 cubic meters in the northern wing of the area. In the
city of Vantaa, an office and warehouse building for SGN and a logistics centre
for Transphere were completed. In Kerava, the new timber crushing plant for
Lassila & Tikanoja was completed, and in Lahti a car dealership and a repair
shop for Autosalpa. The main contract for the interior construction of the
Helsinki City Service Tunnel, with a total volume of 120,000 cubic metres, was
also brought to completion. The underground car park built by SRV was completed
in the Kamppi district of Helsinki and opened to the public in May. The P-City
car park is operated by Europark Finland Oy.
In January, SRV and Mutual Pension Insurance Company Varma signed a contract
concerning the Vierumäki Congress & Resort Hotel project. SRV acts as main
responsible contractor in charge of construction and planning. In addition to
191 hotel rooms, the four-storey hotel building includes meeting facilities, six
restaurants, a fitness room, a bowling alley with 10 lanes, and a wellness area.
The hotel will be opened in the spring of 2010.
In January 2009, SRV and the city of Kerava agreed on a contract package
concerning the development of the Kerca logistics area and concluded a contract
for a real estate transaction of four hectares of land and a preliminary
contract for an area of 22 hectares. On the first plot, SRV plans to build a
GCC (Grand Cargo Centre) logistics building with about 20,000 square metres of
floor space. Kerca occupies an area of 160 hectares on the Kerava-Vantaa
border.
In February 2009, property and contract agreements were signed concerning the
Anttila logistics centre to be built in Kerca. Kesko pension fund bought a plot
of 40,000 square metres from the city of Kerava, where a high-bay warehouse of
approximately 19,000 gross square metres for Anttila will be built. The volume
of the building is 300,000 cubic metres. Preconstruction on the plot has been
completed and the construction works will be finished in August 2010.
SRV Business Premises signed a project management contract agreement with Varma
Mutual Pension Insurance Company in June to build a production and logistics
centre for Primula bakery in Järvenpää. The centre includes production,
logistics, sales and administration premises as well as a luncheonette,
cafeteria and bakery shop. The total floor area of the project is 13,000 square
meters and production in the premises is scheduled to begin in the early autumn
of 2010.
In July, SRV was selected as the project management contractor for the
renovation of the Aurora-house of the Helsinki Deaconess Institute. SRV is in
charge of rebuilding the old hospital and hotel into supported and assisted
accommodation units, as well as of building new facilities in the building.
In September, SRV and the insurance companies Tapiola General and Tapiola Life
signed a contract for the construction of Housing Company Helsingin Vanhalinna,
close to Itäkeskus in Helsinki. The gross floor area of the project is 42,000
square meters, and it includes 309 rental apartments as well as service,
restaurant and retail premises.
In October, SRV and the Finnish Rail Administration signed a contract for tunnel
excavations of the Ring Rail Line in Vantaa. SRV builds the Ruskeasanta station
and excavates Ring Rail Line tunnels. A total length of 3.6 kilometres of rail
line tunnels will be excavated. This contract is part of the Ring Rail Line
project that will link the Vantaankoski line, via the Helsinki-Vantaa airport,
to the main rail line.
In October, SRV and the Finnish Fair Corporation signed a project management
contract for the expansion of the exhibition and convention centre. This
contract covers the construction of a new multi-purpose hall, considerable field
work and the alteration of the existing hall. The new hall will have a floor
area of about 19,000 square meters and will be completed in late August 2011.
During the review period, contracts were also concluded to build a service
tunnel for the University of Helsinki in the heart of Helsinki and an equestrian
centre for the Primus riding centre in Espoo. Renovation of an office building
for Ilmarinen was started in the Niittykumpu district in Espoo. The preliminary
works for the extension and renovation of Malmi Hospital in Helsinki were
started, as was the extension of the Mercuria Business College in Vantaa. The
construction of production plant for Lassila & Tikanoja was commenced in Kerava.
The construction of a logistics and warehouse facility for Ilmarinen began in
Tuusula, as well as the construction of new premises for Fin-Seula Oy. In
addition, SRV was awarded the project management contract for the new premises
of Hyvinkää town hall.
The office building in Hakaniemenranta was selected as the construction project
of the year 2008 for Senate Properties. Through this recognition, Senate
Properties seeks to encourage and support skilled designers and builders. The
recognition is based on general quality factors and social responsibility, as
well as solutions that support the clients and innovations.
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| | IFRS | IFRS | | | IFRS | IFRS |
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| Housing | 1-12/ | 1-12/ | change, | change, | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | MEUR | % | 2009 | 2008 |
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| Revenue | 154.1 | 127.9 | 26.3 | 20.5 | 49.9 | 33.3 |
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| Operating profit | 4.9 | 0.7 | 4.2 | 590.1 | 2.0 | -1.2 |
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| Operating profit, % | 3.2 | 0.6 | | | 4.0 | -3.6 |
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| Order backlog | 200.7 | 154.0 | 46.7 | 30.3 | | |
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The Housing business area comprises housing construction in the Helsinki
Metropolitan Area and the neighbouring municipalities, as well as regional
business operations. Besides housing, regional business operations include
commercial, business premises and logistics construction projects.
Revenue in the Housing business area for the review period amounted to EUR 154.1
million (EUR 127.9 million) and operating profit was EUR 4.9 million (EUR 0.7
million). Order backlog was EUR 200.7 million (EUR 154.0 million). The increase
in operating profit was attributed to the increase in the volume of contracting,
brisker housing sales at the end of the year, and the cost savings measures
implemented. Operating profit was eroded by the total losses of EUR 1.2 million
from SRV Keski-Suomi's three completed construction projects.
Fourth-quarter revenue was EUR 49.9 million (EUR 33.3 million) and operating
profit was EUR 2.0 million (loss of EUR 1.2 million). The increase in operating
profit could be attributed to the revived housing sales, the increase in the
volume of contracting, and the executed savings measures.
More resources were allocated to contracting and, during the review period,
contracts worth EUR 140.5 million were concluded with external clients. EUR 82.6
million of the concluded contracts were negotiation contracts, where SRV has
also acted as developer. SRV is building the S-Group's Kodin Terra hardware and
home decor department store and ABC service station for Tampereen Osuuskauppa in
Nokia. Also in Tampere, a car dealership focusing on the sale of BMWs and Minis
will be renovated for Aro-Yhtymä. The Pakkalanrinne day care centre will be
built for lease to the City of Vantaa, the investor in the project is Ilmarinen
Mutual Pension Insurance Company. A contract was signed with Scan-Auto to build
a Scania centre in Jyväskylä, for servicing large vehicles, and an earthworks
contract was signed for a similar project in Oulu. Provisional premises for the
Cygnaeus school centre in Jyväskylä and Valintatalo market in Nokia are also
being built.
During the review period, 323 (76) housing units were sold to investors under
negotiation contracts. A construction contract was signed with Sato to build two
housing blocks with a total of 74 units on a property previously owned by SRV in
the Vallikallio district in Espoo. In the Ulrika area in the Rekola district in
Vantaa, 50 right-of-occupancy homes are being built for Asuntosäätiö. 40 housing
units are being built for Tampereen YH in Ylöjärvi and 42 units in the Henneri
area in Tampere on a property previously owned by SRV. In Jyväskylä SRV is
building a total of 117 service-accommodation units for Jyväskylän Nuoriso- ja
Palveluasunnot ry. They will be used mainly as elderly care homes.
SRV won contracts worth EUR 57.9 million through bidding competitions. The most
important of these were a high-rise project of 104 apartments for HOAS
(Foundation for Student Housing in the Helsinki Region) in the Viikki district
of Helsinki and the piping renovation of two housing companies in the Haaga
district of Helsinki. Two apartment houses with a total of 75 apartments are
being built for the city of Joensuu A health centre is being built for the town
of Ylöjärvi for, and an S market for the S Group in Lappeenranta.
In the Varsinais-Suomi region, SRV signed several contracts during the period: A
well-being centre for the municipality of Tarvasjoki, the Logicity terminal for
Varsinais-Suomen Kaukokiito in the vicinity of Turku airport, a sports hall for
the municipality of Aura, and an industrial hall for Turun Thermohuolto. In
addition, restaurant facilities in connection with the Turku Fair and Congress
Centre will be expanded and renovated, and the premises of Kiinteistö Oy
Kuninkaanväylä will be renovated.
During the period under review, SRV began the construction and sales of 251
developer contracting housing units in seven projects. Six of these, containing
a total of 247 apartments, were started up during the final quarter. SRV will
build an apartment building with 88 apartments in the Kartanonkoski district in
Vantaa, and an apartment building with 67 apartments in the Martinlaakso
district in Vantaa. The construction of the final building with 43 apartments
began in the Vallikallio district in Espoo, where SRV is building five apartment
buildings. Seven extremely high-quality terraced houses and semi-detached houses
are being built in Haukilahti in Espoo. The construction of an apartment
building with 28 apartments in Parkano and of a building with 14 apartments in
Jyväskylä began at the year-end, and a terraced house with 4 apartments in Oulu
at the beginning of the year. The Helsingin Oscar condominium with 64 units in
the Töölö district in the immediate vicinity of Kamppi in Helsinki was completed
in October.
During the review period, 207 (141) developer contracting units were sold. Sales
picked up, particularly in the fourth quarter with the sale of 86 (13)
residential units. At the end of the period, 263 (265) residential units were
being constructed, 231 (226) of which had not been sold. There were 171 (133)
completed but unsold units, 40 of which were rented at the period-end. A total
of 252 (260) developer contracting residential units were completed during the
review period. SRV has several residential projects in prime locations whose
planning has been taken further. Strict criteria have been established for the
start-up of new developer contracting projects; start-ups will be considered
depending on pre-marketing results.
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| Developer | 1-12/ | 1-12/ | change | 10-12/ | 10-12/ | |
| contracting housing | 2009 | 2008 | , | 2009 | 2008 | |
| production in | | | units | | | |
| Finland | | | | | | |
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| Start-ups | 251 | 110 | 141 | 247 | 0 | |
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| Sold | 207 | 141 | 66 | 86 | 13 | |
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| Completed | 252 | 260 | -8 | 64 | 0 | |
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| Completed and unsold | 171 | 133 | 38 | | | |
| 1) | | | | | | |
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| Under construction | 263 | 265 | -2 | | | |
| 1) | | | | | | |
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| - of which unsold 1) | 231 | 226 | 5 | | | |
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1) At the end of the period
During the review period, codetermination negotiations were commenced in SRV
Keski-Suomi in Jyväskylä region due to financial and production reasons. As a
result of these negotiations, SRV dismissed three salaried employees. Erkki
Jaala, the regional manager in SRV Keski-Suomi, left the company in October. In
December, codetermination negotiations were commenced in SRV Pohjois-Suomi in
Oulu due to financial and production reasons.
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| | IFRS | IFRS | | | IFRS | IFRS |
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| International | 1-12/ | 1-12/ | change, | change, | 10-12/ | 10-12/ |
| Operations | 2009 | 2008 | MEUR | % | 2009 | 2008 |
| (EUR million) | | | | | | |
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| Revenue | 22.9 | 60.1 | -37.2 | -61.9 | 3.4 | 10.2 |
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| Operating profit | -7.9 | 9.2 | -17.1 | -185.4 | -2.0 | -2.7 |
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| Operating profit, % | -34.4 | 15.4 | | | -58.4 | -26.5 |
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| Order backlog | 24.6 | 35.6 | -11.0 | -31.0 | | |
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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 22.9 million (EUR 60.1
million). Operating loss was EUR 7.9 million (a profit of EUR 9.2 million).
Revenue and operating profit were affected by the small number of projects under
construction, and operating profit also by the development costs of developer
contracting projects and the fixed costs of business operations. Revenue and
operating profit for the comparison period were increased by the sale of the
hotel in Ekaterinburg, where EUR 14.2 million was recorded in revenue and EUR
13.5 million in operating profit. The order backlog was EUR 24.6 million (EUR
35.6 million).
Fourth-quarter revenue was EUR 3.4 million (EUR 10.2 million) and operating loss
was EUR 2.0 million (EUR -2.7 million). Revenue was affected by the small number
of projects under construction and, in addition to this factor, operating profit
fell due to the development costs of developer contracting projects and the
fixed costs of business operations.
Russia
The Etmia II office and parking facility project in the heart of Moscow has
reached shell & core completion. Due to the slow-down of demand in the Moscow
office market, SRV has decided to do the fit-out works in the office section
itself with completion scheduled for the year-end. Negotiations with potential
tenants are under way. SRV's role in the project is to act as the project
management contractor and as co-owner with a 50 per cent stake.
In the Moscow area, a building permit was granted for the Mytischi shopping
centre project which has been developed by SRV. Construction of the electrical
connection has started. The majority owner of the project is the Finnish real
estate investment company Vicus, with a 75 per cent stake. Due to the global
financing situation, negotiations concerning the financing of the project have
not been successful. The site organisation has been temporarily moved to other
projects to await the final investment decision. The final investment decisions
will be made after the financing of the project and negotiations with the
tenants have been concluded. SRV owns 25 per cent of the shopping centre project
and its total investments amount to about EUR 7.7 million.
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. SRV has invested about EUR 50 million in land
and properties. Further investment in land acquisition by SRV is estimated at
EUR 10 million. At the moment, SRV owns 87.5% of the project, but its ownership
will decline to 77.5 per cent when all land-owning arrangements have been
completed according to the cooperation contract.
Phase II of the renovation works of the Pribaltiskaya hotel and phase II of the
renovation of hotel Pulkovskaya, both operated by the Rezidor Group, were
completed during the period.
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 near 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. Site planning has begun and negotiations with potential
tenants for phase I are under way.
Demand for the apartments in the Papula residential area in the city of Vyborg
remained weak during the review period and no new transactions were concluded.
30 of the first-phase units had been sold to a Russian company that was unable
to arrange financing for the transaction and the sale had to be cancelled. The
sale of another unit also had to be cancelled. At the end of the period, 32
units were unsold.
During the review period, SRV concluded the establishment of a real estate fund
together with VTB Capital and Deutsche Bank. The fund will invest mainly in
office, retail and hotel projects as well as in the construction of top end
residential projects in Moscow and in St Petersburg. The fund can also invest in
operating completed properties.
SRV's share of the investment commitments in the first phase is EUR 20 million.
VTB Capital and Deutsche Bank are also investors in the fund. Other investors
are the pension insurance companies Ilmarinen and Etera. The final target for
the investment commitments of the fund is at least EUR 300 million, which may
equal as much as EUR 1 billion in investment volume.
VTB Capital and Deutsche Bank will act in partnership as the sponsor and general
partner of the fund. Their tasks will 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.
In December, SRV signed a letter of intent with the Chinese Baltic Pearl CJSC to
construct a shopping centre in St. Petersburg. According to the letter of
intent, SRV will initiate the required preliminary work, which includes concept
design, market research and the arrangement of external financing. Once the
conditions of the letter of intent have been fulfilled, SRV intends to design
and build a shopping centre with a floor area of more than 100,000 square meters
in two phases and over a period of three years. The companies have also agreed
to set up a joint venture that will own the property. 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 the Baltic Pearl development
project in which Baltic Pearl CJSC will develops a land area of over 205
hectares, located south-west of central St. Petersburg. 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. No new residential projects
start-ups are scheduled in the present market situation. In Estonia, 6 (6)
residential units were sold during the period and, all in all, 35 (41) units
were up for sale in already-completed projects at the end of the period. The
number of staff in Estonia was adjusted to the market situation.
On 9 April 2009, SRV and the International School of Latvia signed a contract
agreement concerning the construction of an international school in Riga. The
design phase of the project is completed, but due to delays in the client's
financing the start-up has been postponed to 2010.
SRV Terbelat Sia, a subsidiary of SRV Group Plc, has been engaged as a claimant
in international arbitration proceedings in Berlin concerning a power plant
construction contract in Latvia with a Latvian customer, SIA Juglas Jauda. SRV
suspended the work due to breach of contract by the customer and terminated the
contract in the autumn of 2007. On 28 July 2009, the arbitration tribunal
confirmed SRV's right to terminate the contract and ordered the defendant to pay
SRV approximately EUR 1.4 million in costs and interest. SRV applied for the
enforcement of the arbitration tribunal's decision in a Latvian local court,
where the customer has also initiated proceedings, based on the same contract,
against SRV. SRV signed an agreement with the customer in December whereby the
customer will pay SRV compensation of EUR 0.5 million. This agreement had no
material impact on the financial results.
--------------------------------------------------------------------------------
| | IFRS | IFRS | | | IFRS | IFRS |
--------------------------------------------------------------------------------
| Other Operations | 1-12/ | 1-12/ | change, | change, | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | MEUR | % | 2009 | 2008 |
--------------------------------------------------------------------------------
| Revenue | 8.7 | 11.5 | -2.8 | -24.1 | 2.3 | 3.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -4.7 | -4.9 | 0.2 | | -1.4 | -1.4 |
--------------------------------------------------------------------------------
Other Operations comprise mainly the SRV Group Plc and SRV Kalusto Oy
businesses.
The revenue of Other Operations during the review period was EUR 8.7 million
(EUR 11.5 million) and operating loss was EUR 4.7 million (EUR -4.9 million).
This decrease in revenue was caused by lower operation volumes. The operating
loss was reduced by cost savings measures. Fourth-quarter revenue was EUR 2.3
million (EUR 3.0 million) and operating loss was EUR 1.4 million (EUR -1.4
million). The lower revenue was due to lower operation volumes.
Financing and financial position
Net operational cash flow improved to EUR 3.6 million (a loss of EUR 103.2
million in January-December 2008). This improvement can be attributed to the
downsizing of inventories instead of pursuing strong growth, due to which the
change in working capital was slightly positive. The group's inventories were
EUR 291.4 million (EUR 294.8 million), the share of land areas and plot-owning
companies being EUR 153.0 million (EUR 142.1 million). The Group's invested
capital amounted to EUR 349.9 million (EUR 339.4 million).
At the end of the review period, the Group's financing reserves were EUR 124.4
million, of which the Group's cash assets amounted to EUR 5.2 million and
committed undrawn financing reserves and credit facilities amounted to EUR 119.2
million. The Group's net interest-bearing liabilities were EUR 180.7 million on
31 December 2009 (EUR 169.4 million). Net financing expenses totalled EUR 4.2
million (EUR 9.2 million).
Investments in SRV's developer contracting housing projects in Finland consonant
with the RS-system, including completed, unsold projects, total around EUR 75.9
million. SRV estimates that the completion of these projects requires another
EUR 32 million. Undrawn housing corporate loans total EUR 41 million.
Investments in business premise projects in Finland amount to EUR 25.5 million.
Investments in international developer contracting projects amount to about EUR
42 million, of which EUR 1.9 million relates to unsold residential projects in
Estonia, EUR 3.5 million an unsold housing project in Vyborg and EUR 36.7
million in Etmia office project and Mytischi shopping centre project.
Equity ratio was 41.3 per cent (41.3%). The change in the equity ratio and net
liabilities was affected by the increase in inventories in particular. The
Group's shareholders' equity totalled EUR 164.3million (EUR 166.6 million on 31
December 2008). The return on investment was 4.7 per cent (12.9%) and the return
on equity was 1.4 per cent (9.4%).
Investments
The Group's investments totalled EUR 3.7 million (EUR 16.8 million) and were
mainly related to the acquisition of shares of one subsidiary. In the reference
period, EUR 10.0 million of the investments were related to the properties in
the IBI project.
Unbuilt land areas, land acquisition commitments and land development agreements
--------------------------------------------------------------------------------
| Land reserve | Business | Housing | International | Total |
| 31.12.2009 | Operations | | Operations | |
--------------------------------------------------------------------------------
| Unbuilt land areas and land acquisition commitments |
--------------------------------------------------------------------------------
| Building rights*, | 199 000 | 257 000 | 842 000 | 1298 000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| Capital invested | 36 | 56 | 98 | 190 |
| incl. | | | | |
| commitments, EUR | | | | |
| million | | | | |
--------------------------------------------------------------------------------
| Land development | | | | |
| agreements | | | | |
--------------------------------------------------------------------------------
| Building rights*, | 466 000 | 354 000 | 117 000 | 937 000 |
| m2 | | | | |
--------------------------------------------------------------------------------
| * Building rights also include the estimated building rights/construction |
| volume of unzoned land reserves and land areas covered by agreements in |
| projects that are wholly or partly owned by SRV |
--------------------------------------------------------------------------------
In March, the City of Oulu granted SRV a planning reservation for an
approximately 5 hectare land area in the immediate vicinity of Oulu harbour.
SRV aims to develop logistics facilities and business premises in the area,
together with the Port of Oulu and companies operating there.
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.
Changes in Group structure
In June 2009, SRV acquired 100 per cent ownership of Pirkanmaan Projektitoimi
Oy. To streamline the business structure and operations, SRV initiated the
process to merge the company into SRV Asunnot Oy in July 2009. Pirkanmaan
Projektitoimi was merged with SRV Asunnot Oy on 31 December 2009 and continues
to operate under the business name SRV Pirkanmaa.
Rationalising measures
On 19 January, SRV began negotiations to adjust the number of employees to the
market situation. The codetermination negotiations concerning the Group's
Finnish companies were concluded on 26 March, and as a result SRV laid off 60
persons during 2009. In addition to lay-offs, the company agreed with the
Finnish employees that additional holiday pay would be traded for time off. A
similar process has been started in the Group's companies abroad. These and
other Group-wide measures generated savings of around EUR 6 million in the
Group's fixed costs in 2009.
Personnel
SRV had an average payroll of 776 (871) employees, of whom 544 (614) were
white-collar. The parent company had an average staff of 53 (66) white-collar
employees. At the close of the review period, the Group had 766 (870) employees,
of whom 47 (66) were employed by the parent company. An average of 17 per cent
(15) of the employees work in subsidiaries and representative offices abroad. At
the end of the review period, SRV had a total of 18 (25) trainees working in the
Group's operations in Finland (in summer jobs and in work training as well as
students working on their thesis or diploma). The salaries and compensations
paid during the financial period totalled EUR 35.8 million (EUR 37.7. million)
--------------------------------------------------------------------------------
| Personnel by business area | 31.12.2009 | 31.12.2008 | Share of Group |
| | | | personnel, |
| | | | 31.12.2009, % |
--------------------------------------------------------------------------------
| Business Premises | 289 | 296 | 37.7 |
--------------------------------------------------------------------------------
| Housing | 215 | 285 | 28.0 |
--------------------------------------------------------------------------------
| International | 182 | 191 | 23.7 |
--------------------------------------------------------------------------------
| Other Operations | 81 | 98 | 10.6 |
--------------------------------------------------------------------------------
| Group, total | 767 | 870 | 100.0 |
--------------------------------------------------------------------------------
During the final quarter, we focused strongly on our personnel's professional
and supervisory skills. The objective of the training programs is to take full
advantage of the group's best practices and the latest know-how in the industry
in all business operations.
The share-based incentive plan for 2009 includes about 77 employees and the
reward is based mainly on consolidated and partly on business area performance.
The rewards to be paid for the earning period 2009 correspond to 77,340 SRV
Group Plc shares. In addition, a sum of money corresponding to this number of
shares is paid for tax withholding purposes.
Outlook for construction
After a rapid decline, the global economy has taken an upward turn. However, the
recovery is slow and the situation in the property and construction market
continues to be challenging. It is estimated that the Finnish economy will grow
slightly in 2010.
Falling construction input prices have levelled out. The availability of
subcontracting and materials is good. Unemployment in construction is increasing
and government support measures have been initiated.
Consumer confidence has strengthened in the housing markets, this together with
the low interest level have increased demand, prompting a larger number of new
start-ups in developer contracting housing projects. Weakening employment trends
will have a negative short-term effect on the housing markets. Meanwhile, in the
longer term, 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 decreased during the review
period. Vacancy rates in office premises have reached a high level and
construction is slow. The near future outlook for commercial and logistics
construction is somewhat better.
Renovation continues to grow, and in the long term, this trend is maintained by
the growth of the building stock, the ageing of existing buildings, as well as
modernisation needs to meet current technical standards and energy efficiency
requirements. The outlook for civil engineering has weakened despite government
support measures.
The economic situation in the Baltic countries has remained weak. 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. A faltering investment trend is
reflected strongly in construction, reducing it significantly. The scarce
availability of financing limits growth opportunities. The Russian national
economy is reviving due to rising oil prices. Inflation has abated and interest
rates have declined.
Risks, risk management and corporate governance
General economic trends and changes in customers' operating environments have an
immediate effect on the construction and property markets. A change in the
general interest level has a direct impact on both SRV's cash flow from
operating activities and financing costs. The general economic situation is weak
and is lowering the volume of property investments. Interest rates are low, but
the availability of credit from the banks is poor and loan margins have risen to
a high level. The banks' own refinancing has become more expensive, which has
shortened customers' loan maturities.
The international financial crisis can weaken the availability of financing for
property development and investments, making it more difficult for SRV's
customers to obtain financing throughout SRV's operating regions and in Russia
in particular. Property values face pressures and the number of property
transactions and new project start-ups has decreased due to difficulties in
securing financing. The financial crisis can intensify SRV's risk of being
forced to tie up capital in projects for longer than intended.
SRV's revenue is generated by construction projects. The company's revenue and
result depend on the order backlog, volume of new projects, and the
profitability of individual projects as well as their progress. The recognition
date of developer contracting projects also depends on the percentage of sold
premises therein. As of 1 January 2010, the Completed Contract Method will be
applied to revenue recognition for housing unit sales.
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. Housing sales have revived somewhat in Finland, while
they remain at a standstill in Estonia. The slowdown in housing sales will
increase sales and marketing costs and interest expenses in developer
contracting housing production.
Construction is subject to significant cost risks relating to subcontracting and
deliveries, and the control of these underlines the need for long-term planning.
In a poor economic situation, financing risks relating to subcontractors will
also increase (including labour market disturbances, bankruptcies and the grey
economy). SRV's contracting model requires skilled and competent personnel.
Construction projects also face other case-specific risks relating to the design
and construction of projects (including new and difficult planning solutions,
thermal insulation and waterproofing, and occupational safety). Warranty and
liability obligations related to construction can span up to ten years.
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 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,
EUR 55 million of which will mature in December 2012 and EUR 45 million in
December 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 will be disclosed in the 2009 Annual Report and Notes to the Financial
Statements.
SRV estimates that no other essential changes have occurred in the company's
risks.
The 2009 annual report including Financial Statements, Report of the Board of
Directors and Corporate Governance Statement is available in the company's
website at www.srv.fi on week 8/2010.
Environmental issues
In its operations, the Group seeks to adhere to the principles of sustainable
development and to minimise the harmful environmental impacts of buildings over
their entire life cycle. Attention is paid to environmental management during
both the design and actual construction stage. In 2009, two research projects
were launched to develop sustainable building and implementation models. In
Finland, SRV employs an environmental reporting system on its construction
sites.
Corporate governance and resolutions of general meetings
The Annual General Meeting was held on 25 March 2009. The AGM adopted the
financial statements for 2008 and granted release from liability to the members
of the Board of Directors and the President and CEO. A dividend of EUR 0.12 per
share was declared. The date of dividend payment was set at 3 April 2009. Mr
Ilpo Kokkila was elected chairman of the Board of Directors and Mr Jukka
Hienonen, Mr Lasse Kurkilahti, Mr Hannu Leinonen and Mr Matti Mustaniemi were
elected Board members. The firm of public accountants Ernst & Young Oy was
elected as the company's auditor. Mikko Rytilahti, authorised public accountant,
will act as the principal auditor.
The Annual General Meeting authorised the Board of Directors to resolve on the
acquisition of the company's own shares (treasury shares). This authorisation
will remain in force for 18 months from the decision of the meeting. A maximum
of 3,676,846 own shares, or a lower amount that, in addition to the shares
already owned by the company and its subsidiaries, is less than 10 per cent of
all shares, may be acquired on the basis of the authorisation. The Annual
General Meeting authorised the Board of Directors to resolve on the transfer of
treasury shares against payment or without consideration. This authorisation is
in force for two years from the decision of the meeting.
In its organisational meeting on 25 March 2009 the Board of Directors elected
Lasse Kurkilahti vice chairman of the Board, Matti Mustaniemi chairman of the
Audit Committee, Lasse Kurkilahti member of the Audit Committee, Jukka Hienonen
and Hannu Leinonen members of the Nomination and Remuneration Committee and Ilpo
Kokkila chairman of the Nomination and Remuneration Committee.
On 12 August 2009, Eero Heliövaara, President and CEO of SRV resigned from his
post. The Board of Directors appointed Senior Executive Vice President, CFO
Hannu Linnoinen as CEO and began the process to select the new CEO. On 15
December 2009, the Board of Directors appointed Jukka Hienonen (M.Sc. Econ.) as
SRV's President and CEO effective as of 1 August 2010.
On 9 September 2009, Hannu Leinonen, Member of SRV's Board of Directors,
resigned from the membership of the Board of Directors after being appointed CEO
of Destia Oy. A new member of the Board of Directors will be elected in the next
Annual General Meeting.
Shares and shareholders
SRV Group Plc's share capital is EUR 3,062,520. The share has no nominal value
and the number of shares outstanding is 36,768,468. The company has one class
of shares. SRV had a total of 5,712 shareholders on 31 December 2009.
The share closing price at OMX Helsinki at the end of the financial year was EUR
5.89 (EUR 3.47 on 31 December 2008).). The highest share price in the financial
year was EUR 5.97 and the lowest was EUR 2.75. The change in the all-share index
of the Helsinki Stock Exchange (OMX Helsinki) during the same period was 19.5
per cent positive and the OMX Industrial and Services index 83.5 per cent
positive.
At the end of the review period, the company's market capitalisation was EUR
210.7 million, excluding the Group's own shares. About 8.3 million shares were
traded during the period and the trade volume was EUR 31.4 million.
On 13 May 2009 the Board of Directors of SRV Group Plc decided to exercise its
authorisation to acquire the company's own shares. The share acquisition started
on 25 May 2009. At the end of the review period, SRV Group Plc's subsidiary SRV
Kalusto Oy had 215,562 of SRV Group Plc's shares acquired in accordance with the
conditions of the merger plan of SRV Group Plc and SRV Henkilöstö Oy. On 31
December 2009, SRV Group Plc and SRV Kalusto Oy had a total of 1,000,000 of SRV
Group Plc's shares, representing 2.7 per cent of the total number of the
company's shares and votes. On 10 February 2010, the Group had a total of
1,000,000 shares with an average acquisition price of EUR 3.7 (2.7 per cent of
the total number of the company's shares and votes).
Eero Heliövaara, SRV Group Plc and Ilpo Kokkila concluded a contract on 11
August 2009 stipulating that SRV Group Plc and Ilpo Kokkila commit themselves to
buying or to designating a buyer of the 1,909,483 SRV shares owned by Eero
Heliövaara so that the shares will be sold by 5 January 2010 at the latest, and
that the received price will average EUR 4.45 per share. This agreement creates
a situation in which the shares will be transferred so that the threshold as
intended in the Chapter 2 Section 9 of the Securities Market Act falls below one
twentieth (1/20) of the voting rights and total number of shares. The
arrangement was based on an earlier agreement concerning the shares.
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 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 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.
Events after the reporting period
The value of new contracts in the Business Premises business area grew by EUR
55.7 million in January. The Housing business area sold 38 residential units in
January (6 units in January 2008).
In January, SRV signed a contract for the construction of spa hotel Holiday Club
Saimaa in Lappeenranta, in the Rauha area. An aqua park with a wellness area, a
restaurant world and a multifunction ice arena will operate in connection with
the spa hotel. SRV is acting as a contractor and investor in the project. The
spa hotel will be completed in summer 2011.
In January, SRV signed an agreement to buy a total of 28,000 square metres of
building rights from VVO Rakennuttaja Oy. The land areas transferred in the
agreement consist of leaseholds, purchase options and direct landed property.
These areas are located in the Metropolitan Helsinki area: in Arabianranta and
Kannelmäki in Helsinki and in Matinkylä in Espoo. They have been zoned for the
construction of apartment buildings.
On 5 January 2010, SRV implemented the agreement signed with Eero Heliövaara on
11 August 2009 and Nordea Bank AB (publ) acquired the shares for a per-share
price of EUR 4.45. At the same time SRV signed a 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.
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.
Proposal for the distribution of profits
The parent company's distributable funds on 31 December 2009 are EUR
141,438,732.44
of which net profit for the financial year is EUR 23,034,038.48
The Board of Directors proposes to the Annual General Meeting that distributable
funds be disposed of as follows:
A dividend of EUR 0.12 per share be paid to shareholders, or EUR 4,412,216.16
The amount to be transferred to shareholders' equity EUR 137,026,516.28
No material changes have taken place in the company's financial position after
the close of the financial year. The company's liquidity is good and, in the
view of the Board of Directors, the proposed dividend payout does not compromise
the company's solvency.
Espoo 11 February, 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 | IFRS |
--------------------------------------------------------------------------------
| | | 1-12/ | 1-12/ | 10-12/ | 10-12/ |
| | | 2009 | 2008 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Revenue | EUR | 385.0 | 537.0 | 120.1 | 121.4 |
| | million | | | | |
--------------------------------------------------------------------------------
| Operating profit | EUR | 9.9 | 32.9 | 2.8 | 0.7 |
| | million | | | | |
--------------------------------------------------------------------------------
| Operating profit, % of | % | 2.6 | 6.1 | 2.3 | 0.6 |
| revenue | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EUR | 5.8 | 23.7 | 2.3 | -2.6 |
| | million | | | | |
--------------------------------------------------------------------------------
| Profit before taxes, % of | % | 1.5 | 4.4 | 1.9 | -2.1 |
| revenue | | | | | |
--------------------------------------------------------------------------------
| Net profit attributable to | EUR | 2.3 | 15.7 | 1.0 | -2.2 |
| equity holders of the | million | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity | % | 1.4 | 9.4 | | |
--------------------------------------------------------------------------------
| Return on investment | % | 4.7 | 12.9 | | |
--------------------------------------------------------------------------------
| Invested capital | EUR | 349.9 | 339.4 | | |
| | million | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio | % | 41.3 | 41.3 | | |
--------------------------------------------------------------------------------
| Net interest-bearing debt | EUR | 180.7 | 169.4 | | |
| | million | | | | |
--------------------------------------------------------------------------------
| Net gearing ratio | % | 110.1 | 101.7 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | EUR | 480.6 | 455.3 | | |
| | million | | | | |
--------------------------------------------------------------------------------
| New agreements | | 396.1 | 399.1 | | |
--------------------------------------------------------------------------------
| Personnel on average | | 776 | 871 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Property, plant and | EUR | 3.7 | 16.8 | 1.0 | -6.0 |
| equipment investments | million | | | | |
--------------------------------------------------------------------------------
| Property, plant and | % | 1.0 | 3.1 | 0.8 | -5.0 |
| equipment investments, % | | | | | |
| of revenue | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, share | EUR | 0.06 | 0.43 | 0.02 | -0.06 |
| issue adjusted | | | | | |
--------------------------------------------------------------------------------
| Equity per share, share | EUR | 4.48 | 4.54 | - | - |
| issue adjusted | | | | | |
--------------------------------------------------------------------------------
| Dividend per share, share | EUR | 0.12 | 0.12 | - | - |
| issue adjusted 1) | | | | | |
--------------------------------------------------------------------------------
| Dividend payout ratio | % | 200.0 | 27.9 | - | - |
--------------------------------------------------------------------------------
| Dividend yield | % | 2.0 | 3.5 | - | - |
--------------------------------------------------------------------------------
| Price per earnings ratio | | 98.2 | 8.1 | - | - |
--------------------------------------------------------------------------------
| Share price development | | | | - | - |
--------------------------------------------------------------------------------
| Share price at the end of | EUR | 5.89 | 3.47 | - | - |
| the period | | | | | |
--------------------------------------------------------------------------------
| Average share price | EUR | 4.06 | 5.05 | - | - |
--------------------------------------------------------------------------------
| Lowest share price | EUR | 2.75 | 2.82 | - | - |
--------------------------------------------------------------------------------
| Highest share price | EUR | 5.97 | 6.60 | - | - |
--------------------------------------------------------------------------------
| Market capitalisation at | EUR | 210.7 | 125.7 | - | - |
| the end of the period | million | | | | |
--------------------------------------------------------------------------------
| Trading volume | 1,000 | 8 309 | 13 543 | - | - |
--------------------------------------------------------------------------------
| Trading volume | % | 23.1 | 37.1 | - | - |
--------------------------------------------------------------------------------
| Weighted average number of | 1,000 | 35 999 | 36 526 | - | - |
| shares outstanding | | | | | |
--------------------------------------------------------------------------------
| Number of shares | 1,000 | 35 768 | 36 210 | - | - |
| outstanding at the end of | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
1) Board of Directors' proposal for the distribution of profits of 2009
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 Financial Statements Review 1 January - 31 December 2009: Tables
APPENDICES
1) Condensed consolidated financial statements: income statement, balance sheet,
statement of changes in equity, cash flow statement, inventories, commitments
and contingent liabilities, derivative contracts liabilities
2) Quarterly development
3) Segment information
4) Events after the reporting period
1. Financial Statements Review 1 January - 31 December 2009
IFRS standards and operating segments
SRV Group's consolidated financial statements have been prepared in accordance
with the International Financial Reporting Standards (IFRS) valid on 31 December
2009. The figures in the tables have been rounded which should be noted when
counting the total sums. The interim condensed consolidated financial statement
information has been prepared in accordance with the accounting policies set out
in the IAS 34 standard, and the information disclosed for the periods January
December 2009 and January - December 2008 is audited and the information
disclosed for the periods October - December 2009 and October December 2008 is
unaudited.
SRV's reporting segments comprise Business Premises, Housing, International
Operations and Other Operations. The operating segment figures are disclosed in
accordance with IFRS 8, following the accounting principles applied in the
consolidated financial statements.
Estimate of the impacts of new standards, amendments and interpretations:
IAS 23 Borrowing costs. Borrowing costs attributable to construction projects
starting in 2009 or later shall be capitalised in inventory and recognised in
the income statement as the revenue from the construction project is recognised.
This amendment has an impact both on the Group's financial position and
reporting. During the period 1.1.-31.12.2009 the impact of this amendment to
Group's financial position was minor.
IAS 1 Presentation of financial statements. Starting from 2009, the Group shall
present an income statement and a statement of comprehensive income. The
statement of comprehensive income includes changes in equity that relate to
transactions with non-owners.
Estimate of impacts of future interpretations:
IFRIC 15 Agreements for the construction of real estate. The interpretation
specifies when the revenue relating to construction contracts may be recognised
using the Percentage of Completion method and when the Completed Contract method
should be used instead. The application of this interpretation will have an
impact primarily on the revenue recognition of housing developer contracting and
will have an impact both on the Group's financial position and reporting.
Currently, the Group applies the Percentage of Completion method to housing
developer contracting. With the adoption of the interpretation, the Completed
Contract method will be applied to income recognition from developer contracting
projects. The EU enforced the interpretation on 22 July of 2009 and the
interpretation will be applied in the financial year starting 1 January, 2010.
--------------------------------------------------------------------------------
| Consolidated income | IFRS | IFRS | | | IFRS | IFRS |
--------------------------------------------------------------------------------
| statement | 1-12/ | 1-12/ | change | change | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | , MEUR | ,% | 2009 | 2008 |
--------------------------------------------------------------------------------
| Revenue | 385.0 | 537.0 | -152.0 | -28.3 | 120.1 | 121.4 |
--------------------------------------------------------------------------------
| Other operating income | 2.6 | 1.4 | 1.2 | 89.3 | 1.0 | 0.4 |
--------------------------------------------------------------------------------
| Change in inventories | -6.5 | 53.5 | -60.0 | -112.1 | -14.2 | 28.6 |
| of finished goods and | | | | | | |
| work in progress | | | | | | |
--------------------------------------------------------------------------------
| Use of materials and | -312. | -495.3 | 182.7 | -36.9 | -88.1 | -133.4 |
| services | 6 | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -44.5 | -46.3 | 1.8 | -3.9 | -12.3 | -12.2 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -3.7 | -3.2 | -0.5 | 16.1 | -0.8 | -1.1 |
| impairments | | | | | | |
--------------------------------------------------------------------------------
| Other operating | -10.4 | -14.1 | 3.7 | -26.4 | -2.9 | -3.1 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 9.9 | 32.9 | -23.0 | -69.8 | 2.8 | 0.7 |
--------------------------------------------------------------------------------
| Financial income | 6.0 | 4.2 | 1.9 | 45.2 | 0.5 | 0.8 |
--------------------------------------------------------------------------------
| Financial expenses | -10.2 | -13.4 | 3.2 | -23.7 | -1.0 | -4.1 |
--------------------------------------------------------------------------------
| Financial income and | -4.2 | -9.2 | | | -0.5 | -3.3 |
| expenses, total | | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 5.8 | 23.7 | -17.9 | -75.6 | 2.3 | -2.6 |
--------------------------------------------------------------------------------
| Income taxes | -3.4 | -8.5 | 5.0 | -59.4 | -1.3 | -0.2 |
--------------------------------------------------------------------------------
| Net profit for the | 2.3 | 15.3 | -12.9 | -84.7 | 1.0 | -2.8 |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 2.3 | 15.7 | | | 1.0 | -2.2 |
| parent company | | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | -0.4 | | | 0.0 | -0.5 |
--------------------------------------------------------------------------------
| Earnings per share | 0.06 | 0.43 | | -86.0 | 0.02 | -0.06 |
| calculated on the | | | | | | |
| profit attributable to | | | | | | |
| equity holders of the | | | | | | |
| parent company | | | | | | |
| (undiluted and diluted) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| Statement of comprehensive income | 1-12/ | 1-12/ | 10-12/ | 10-12/ |
| (EUR million) | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Net profit for the period | 2.3 | 15.3 | 1.0 | -2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items recognised directly in equity: | | | | |
--------------------------------------------------------------------------------
| Exchange differences on translating | 0.0 | -0.1 | -0.1 | -0.1 |
| foreign operations | | | | |
--------------------------------------------------------------------------------
| Available for sale financial assets | 0.0 | -0.1 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Net gain (loss) on cash flow hedges | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Deferred tax | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income (loss) recognised directly in | 0.0 | -0.1 | 0.0 | -0.1 |
| equity net of tax | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | 2.3 | 15.1 | 0.9 | -2.9 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 2.3 | 15.6 | 0.9 | -2.9 |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | -0.4 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change, |
--------------------------------------------------------------------------------
| (EUR million) | 31.12.09 | 31.12.08 | % |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 16.3 | 19.0 | -14.3 |
--------------------------------------------------------------------------------
| Goodwill | 1.7 | 1.7 | 0.0 |
--------------------------------------------------------------------------------
| Other intangible assets | 0.5 | 0.5 | -15.8 |
--------------------------------------------------------------------------------
| Other financial assets | 4.8 | 4.3 | 12.5 |
--------------------------------------------------------------------------------
| Receivables | 16.2 | 6.6 | 145.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2.2 | 1.7 | 30.7 |
--------------------------------------------------------------------------------
| Non-current assets, total | 41.7 | 33.8 | 23.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 291.4 | 294.8 | -1.2 |
--------------------------------------------------------------------------------
| Trade and other receivables | 77.6 | 86.7 | -10.5 |
--------------------------------------------------------------------------------
| Current tax receivables | 1.9 | 5.1 | -62.5 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5.2 | 3.4 | 54.7 |
--------------------------------------------------------------------------------
| Current assets, total | 376.2 | 390.0 | -3.5 |
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 417.9 | 423.8 | -1.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet | IFRS | IFRS | change, |
--------------------------------------------------------------------------------
| (EUR million) | 31.12.09 | 31.12.08 | % |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 3.1 | 3.1 | 0.0 |
--------------------------------------------------------------------------------
| Invested free equity fund | 87.3 | 87.3 | 0.0 |
--------------------------------------------------------------------------------
| Translation differences | -0.1 | -0.1 | 15.2 |
--------------------------------------------------------------------------------
| Fair value reserve | -0.1 | -0.1 | 0.0 |
--------------------------------------------------------------------------------
| Retained earnings | 70.1 | 74.1 | -5.4 |
--------------------------------------------------------------------------------
| Equity attributable to equity | 160.3 | 164.3 | -2.5 |
| holders of the parent company, | | | |
| total | | | |
--------------------------------------------------------------------------------
| Minority interest | 3.8 | 2.3 | 66.0 |
--------------------------------------------------------------------------------
| Equity, total | 164.1 | 166.6 | -1.5 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.5 | 0.3 | 95.8 |
--------------------------------------------------------------------------------
| Provisions | 4.8 | 5.6 | -14.4 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 97.6 | 69.7 | 40.0 |
--------------------------------------------------------------------------------
| Other liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 102.9 | 75.6 | 36.2 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 56.2 | 66.8 | -15.9 |
--------------------------------------------------------------------------------
| Current tax payables | 2.6 | 8.0 | -67.1 |
--------------------------------------------------------------------------------
| Provisions | 3.8 | 3.8 | 0.7 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 88.2 | 103.1 | -14.4 |
--------------------------------------------------------------------------------
| Current liabilities, total | 150.9 | 181.6 | -16.9 |
--------------------------------------------------------------------------------
| Liabilities, total | 253.8 | 257.2 | -1.3 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 417.9 | 423.8 | -1.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | |
--------------------------------------------------------------------------------
| Net profit for the period | 2.3 | 15.3 |
--------------------------------------------------------------------------------
| Adjustments: | | |
--------------------------------------------------------------------------------
| Depreciation and impairments | 3.7 | 3.2 |
--------------------------------------------------------------------------------
| Non-cash transactions | 2.7 | -0.5 |
--------------------------------------------------------------------------------
| Financial income and expenses | 4.2 | 9.2 |
--------------------------------------------------------------------------------
| Capital gains on sales of tangible and | 0.0 | 0.0 |
| intangible assets | | |
--------------------------------------------------------------------------------
| Income taxes | 3.4 | 8.5 |
--------------------------------------------------------------------------------
| Adjustments, total | 13.9 | 20.3 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Changes in working capital: | | |
--------------------------------------------------------------------------------
| Change in loan receivables | -13.5 | -12.6 |
--------------------------------------------------------------------------------
| Change in trade and other receivables | 17.8 | 14.9 |
--------------------------------------------------------------------------------
| Change in inventories | 5.4 | -98.8 |
--------------------------------------------------------------------------------
| Change in trade and other payables | -9.6 | -31.9 |
--------------------------------------------------------------------------------
| Changes in working capital, total | 0.2 | -128.3 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Interest paid | -12.7 | -13.0 |
--------------------------------------------------------------------------------
| Interest received | 5.7 | 6.7 |
--------------------------------------------------------------------------------
| Dividends received | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Income taxes paid | -5.9 | -4.2 |
--------------------------------------------------------------------------------
| | -12.9 | -10.5 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 3.6 | -103.2 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of cash | -2.3 | -1.3 |
--------------------------------------------------------------------------------
| Property, plant and equipment | -0.8 | -13.7 |
--------------------------------------------------------------------------------
| Intangible assets | -0.1 | -0.3 |
--------------------------------------------------------------------------------
| Other financial assets | -0.5 | -1.5 |
--------------------------------------------------------------------------------
| Sale of property, plant and equipment and | 0.0 | 0.1 |
| intangible assets | | |
--------------------------------------------------------------------------------
| Sale of financial assets | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -3.7 | -16.7 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flows from financing activities | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from loans | 19.6 | 68.9 |
--------------------------------------------------------------------------------
| Repayments of loans | -22.2 | -10.1 |
--------------------------------------------------------------------------------
| Change in loan receivables | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Change in housing corporation loans | -6.8 | 30.6 |
--------------------------------------------------------------------------------
| Change in credit limits | 17.5 | 18.8 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | -1.8 | -1.9 |
--------------------------------------------------------------------------------
| Dividends paid | -4.4 | -4.4 |
--------------------------------------------------------------------------------
| Net cash from financing activities | 1.9 | 101.8 |
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents | 1.8 | -18.0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the beginning of | 3.4 | 21.4 |
| period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end of period | 5.2 | 3.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change, |
--------------------------------------------------------------------------------
| (EUR million) | 31.12.09 | 31.12.08 | % |
--------------------------------------------------------------------------------
| Raw materials and consumables | 0.0 | 0.0 | 209.3 |
--------------------------------------------------------------------------------
| Work in progress | 34.4 | 100.8 | -65.9 |
--------------------------------------------------------------------------------
| Land areas and plot-owning companies | 153.0 | 142.1 | 7.7 |
--------------------------------------------------------------------------------
| Shares in completed housing corporations | 86.5 | 34.0 | 154.2 |
| and real estate companies | | | |
--------------------------------------------------------------------------------
| Advance payments | 3.6 | 3.7 | -3.5 |
--------------------------------------------------------------------------------
| Other inventories | 14.0 | 14.2 | -1.3 |
--------------------------------------------------------------------------------
| Inventories, total | 291.4 | 294.8 | -1.2 |
--------------------------------------------------------------------------------
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. | 74.1 | 164. | 2.3 | 166.6 |
| 1.1.2009 | | | | | 1 | | 3 | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.2 | -0.2 | | |
| recognised | | | | | | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 2.3 | 2.3 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 2.3 | 2.3 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.3 | -4.3 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -1.8 | -1.8 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0. | 70.1 | 160. | 3.8 | 164.1 |
| 31.12.2009 | | | | | 1 | | 3 | | |
--------------------------------------------------------------------------------
Statement of changes in Group equity 1.1. - 31.12.2008
--------------------------------------------------------------------------------
| | Equity attributable to the equity holders of | |
| | the parent company | |
--------------------------------------------------------------------------------
| IFRS | Sha | Sha | Inve | Trans | Fair | Reta | Tota | Minor | Total |
| (EUR | re | re | sted | -lati | valu | i-ne | l | ity | equit |
| million) | cap | pre | free | on | e | d | | inter | y |
| | ita | miu | equi | diffe | rese | earn | | est | |
| | l | m | ty | r-enc | rve | ings | | | |
| | | res | fund | es | | | | | |
| | | erv | | | | | | | |
| | | e | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | 0.0 | 0.0 | 64.7 | 155. | 3.2 | 158.3 |
| 1.1.2008 | | | | | | | 1 | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | -0.1 | -0.1 | 0.0 | -0.2 | | |
| recognised | | | | | | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 15.7 | 15.7 | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 15.7 | 15.7 | | |
| and expenses | | | | | | | | | |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4.4 | -4.4 | | |
| paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | | | -1.9 | -1.9 | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 3.1 | 0.0 | 87.3 | -0.1 | -0.1 | 74.1 | 164. | 2.3 | 166.6 |
| 31.12.2008 | | | | | | | 3 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments and contingent liabilities | IFRS | IFRS | change, |
--------------------------------------------------------------------------------
| EUR million | 31.12.09 | 31.12.08 | % |
--------------------------------------------------------------------------------
| Collateral given for own liabilities | | | |
--------------------------------------------------------------------------------
| Real estate mortgages given | 106.0 | 114.7 | -7.5 |
--------------------------------------------------------------------------------
| Pledges given | 0.0 | 0.0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | | | |
--------------------------------------------------------------------------------
| Guarantees given for liabilities on | 0.0 | 0.4 | -100.0 |
| uncompleted projects | | | |
--------------------------------------------------------------------------------
| Investment commitments given | 22.1 | 2.7 | 718.2 |
--------------------------------------------------------------------------------
| Plots purchase commitments | 21.6 | 29.9 | -27.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair and nominal values of | IFRS | IFRS | |
| derivative instruments | 31.12.09 | 31.12.2008 | |
--------------------------------------------------------------------------------
| (EUR million) | Fair Values | Fair Values | |
--------------------------------------------------------------------------------
| | Positi | Negativ | Positiv | Negativ | |
| | ve | e | e | e | |
--------------------------------------------------------------------------------
| Hedge accounting not | | | | | |
| applied | | | | | |
--------------------------------------------------------------------------------
| Foreign exchange forward | 0.0 | 0.0 | 0.0 | 0.0 | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 0.0 | 0.7 | 0.0 | 0.0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of | | IFRS | | IFRS | |
| derivative instruments | | | | | |
--------------------------------------------------------------------------------
| | | 31.12.0 | | 31.12.0 | |
| | | 9 | | 8 | |
--------------------------------------------------------------------------------
| Foreign exchange forward | | 0.0 | | 0.0 | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | | 63.4 | | 18.8 | |
--------------------------------------------------------------------------------
| The fair values of derivative instruments are based on market prices at the |
| end of the reporting period. |
| Open foreign exchange forward contracts are |
| hedging the financing cash flow. |
--------------------------------------------------------------------------------
2. Group and Segment information by quarter
--------------------------------------------------------------------------------
| SRV Group | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 10-12 | 7-9/ | 4-6/ | 1-3/0 | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 |
| | /09 | 09 | 09 | 9 | /08 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Revenue | 120.1 | 84.3 | 94.2 | 86.4 | 121.4 | 126.7 | 142.4 | 146.4 |
--------------------------------------------------------------------------------
| Operating | 2.8 | 1.8 | 3.5 | 1.9 | 0.7 | 14.1 | 9.2 | 8.9 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | -0.5 | -1.2 | -1.0 | -1.5 | -3.3 | -2.9 | -2.4 | -0.6 |
| income and | | | | | | | | |
| expenses, | | | | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 2.3 | 0.6 | 2.5 | 0.4 | -2.6 | 11.2 | 6.8 | 8.3 |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | 480.6 | 464. | 458. | 453.9 | 455.3 | 455.2 | 521.1 | 451.3 |
| 1) | | 8 | 4 | | | | | |
--------------------------------------------------------------------------------
| New agreements | 121.1 | 86.2 | 98.2 | 91.3 | 115.4 | 36.7 | 185.0 | 62.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.02 | 0.01 | 0.03 | 0.00 | -0.06 | 0.21 | 0.12 | 0.16 |
| share, eur | | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 4.48 | 4.46 | 4.45 | 4.42 | 4.54 | 4.61 | 4.40 | 4.38 |
| share, eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Share price, | 5.89 | 5.64 | 4.18 | 3.00 | 3.47 | 4.19 | 5.28 | 5.55 |
| eur 1) | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, | 41.3 | 41.0 | 40.4 | 40.9 | 41.3 | 45.9 | 44.9 | 52.1 |
| % 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Net interest | 180.7 | 189. | 185. | 170.6 | 169.4 | 127.9 | 122.4 | 76.1 |
| bearing debt | | 2 | 8 | | | | | |
| 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Net gearing | 110.1 | 115. | 115. | 105.3 | 101.7 | 75.2 | 74.8 | 46.3 |
| ratio, % 1) | | 9 | 6 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 10-12 | 7-9/ | 4-6/ | 1-3/0 | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 |
| | /09 | 09 | 09 | 9 | /08 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Business | 66.9 | 40.2 | 46.1 | 54.8 | 77.9 | 74.3 | 92.2 | 104.8 |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 49.9 | 37.9 | 40.5 | 25.8 | 33.3 | 31.4 | 37.1 | 26.0 |
--------------------------------------------------------------------------------
| International | 3.4 | 6.2 | 7.6 | 5.8 | 10.2 | 21.0 | 13.1 | 15.7 |
--------------------------------------------------------------------------------
| Other | 2.3 | 2.1 | 2.1 | 2.2 | 3.0 | 2.7 | 2.8 | 2.9 |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -2.3 | -2.1 | -2.1 | -2.2 | -3.1 | -2.7 | -2.9 | -2.9 |
--------------------------------------------------------------------------------
| Group, total | 120.1 | 84.3 | 94.2 | 86.4 | 121.4 | 126.7 | 142.4 | 146.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 10-12 | 7-9/ | 4-6/ | 1-3/0 | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 |
| | /09 | 09 | 09 | 9 | /08 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Business | 4.3 | 3.1 | 4.6 | 5.9 | 6.0 | 3.7 | 9.9 | 8.2 |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 2.0 | 1.0 | 1.9 | 0.0 | -1.2 | 0.5 | 0.9 | 0.4 |
--------------------------------------------------------------------------------
| International | -2.0 | -1.5 | -1.9 | -2.5 | -2.7 | 10.8 | -0.1 | 1.2 |
--------------------------------------------------------------------------------
| Other | -1.4 | -0.7 | -1.0 | -1.6 | -1.4 | -1.0 | -1.6 | -0.9 |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | -0.2 | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Group, total | 2.8 | 1.8 | 3.5 | 1.9 | 0.7 | 14.1 | 9.2 | 8.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| (%) | 10-12 | 7-9/ | 4-6/ | 1-3/0 | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 |
| | /09 | 09 | 09 | 9 | /08 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Business | 6.5 | 7.7 | 10.0 | 10.8 | 7.8 | 4.9 | 10.8 | 7.8 |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 4.0 | 2.7 | 4.6 | 0.0 | -3.6 | 1.7 | 2.5 | 1.6 |
--------------------------------------------------------------------------------
| International | -58.4 | -24. | -25. | -43.3 | -26.5 | 51.5 | -0.9 | 7.9 |
| | | 1 | 6 | | | | | |
--------------------------------------------------------------------------------
| Group, total | 2.3 | 2.1 | 3.7 | 2.2 | 0.6 | 11.1 | 6.4 | 6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| (EUR million) | 31.12 | 30.9 | 30.6 | 31.3. | 31.12 | 30.9. | 30.6. | 31.3. |
| | .09 | .09 | .09 | 09 | .08 | 08 | 08 | 08 |
--------------------------------------------------------------------------------
| Business | 255.3 | 252. | 224. | 252.8 | 265.7 | 228.8 | 291.1 | 235.2 |
| Premises | | 0 | 3 | | | | | |
--------------------------------------------------------------------------------
| Housing | 200.7 | 186. | 203. | 169.6 | 154.0 | 186.3 | 186.8 | 182.4 |
| | | 5 | 3 | | | | | |
--------------------------------------------------------------------------------
| International | 24.6 | 26.3 | 30.7 | 31.5 | 35.6 | 40.2 | 43.2 | 33.7 |
--------------------------------------------------------------------------------
| Group, total | 480.6 | 464. | 458. | 453.9 | 455.3 | 455.2 | 521.1 | 451.3 |
| | | 8 | 4 | | | | | |
--------------------------------------------------------------------------------
| - sold order | 316 | 324 | 303 | 286 | 280 | 279 | 358 | 281 |
| backlog | | | | | | | | |
--------------------------------------------------------------------------------
| - unsold order | 165 | 141 | 155 | 168 | 176 | 176 | 163 | 170 |
| backlog | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.12 | 30.9 | 30.6 | 31.3. | 31.12 | 30.9. | 30.6. | 31.3. |
| | .09 | .09 | .09 | 09 | .08 | 08 | 08 | 08 |
--------------------------------------------------------------------------------
| Business | 42.0 | 61.0 | 77.0 | 69.2 | 63.9 | 63.5 | 51.2 | 43.7 |
| Premises | | | | | | | | |
--------------------------------------------------------------------------------
| Housing | 123.1 | 123. | 135. | 134.9 | 138.9 | 115.9 | 105.3 | 97.0 |
| | | 4 | 9 | | | | | |
--------------------------------------------------------------------------------
| International | 177.1 | 165. | 152. | 151.0 | 138.6 | 143.9 | 145.1 | 115.1 |
| | | 8 | 6 | | | | | |
--------------------------------------------------------------------------------
| Other and | 7.7 | 6.2 | -12. | -14.0 | -2.0 | -16.6 | -5.4 | 4.0 |
| eliminations | | | 2 | | | | | |
--------------------------------------------------------------------------------
| Group, total | 349.9 | 356. | 353. | 341.1 | 339.4 | 306.6 | 296.2 | 259.8 |
| | | 5 | 2 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Residential | | | | | | | | |
| production | | | | | | | | |
--------------------------------------------------------------------------------
| in Finland | 10-12 | 7-9/ | 4-6/ | 1-3/0 | 10-12 | 7-9/0 | 4-6/0 | 1-3/0 |
| (units) | /09 | 09 | 09 | 9 | /08 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Start-ups | 247 | 0 | 0 | 4 | 0 | 49 | 53 | 8 |
--------------------------------------------------------------------------------
| Sold | 86 | 43 | 51 | 27 | 13 | 32 | 63 | 33 |
--------------------------------------------------------------------------------
| Completed 1) | 64 | 37 | 93 | 58 | 0 | 31 | 104 | 125 |
--------------------------------------------------------------------------------
| Completed and | 171 | 161 | 185 | 156 | 133 | 140 | 128 | 105 |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
| Under | 263 | 80 | 118 | 211 | 265 | 251 | 247 | 298 |
| construction 1 | | | | | | | | |
--------------------------------------------------------------------------------
| - of which | 231 | 79 | 100 | 180 | 226 | 232 | 227 | 260 |
| unsold 1) | | | | | | | | |
--------------------------------------------------------------------------------
1) at the end of the period
3. Segment information
--------------------------------------------------------------------------------
| Assets | IFRS | IFRS | change, | change, |
--------------------------------------------------------------------------------
| (EUR million) | 31.12.09 | 31.12.08 | MEUR | % |
--------------------------------------------------------------------------------
| Business Premises | 88.7 | 116.9 | -28.2 | -24.1 |
--------------------------------------------------------------------------------
| Housing | 151.5 | 158.4 | -6.9 | -4.4 |
--------------------------------------------------------------------------------
| International | 182.5 | 158.6 | 23.9 | 15.0 |
--------------------------------------------------------------------------------
| Other Operations | 214.5 | 185.1 | 29.4 | 15.9 |
--------------------------------------------------------------------------------
| Eliminations | -219.4 | -195.2 | -24.2 | |
--------------------------------------------------------------------------------
| Group, total | 417.9 | 423.8 | -6.0 | -1.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | IFRS | IFRS | change, | change, |
--------------------------------------------------------------------------------
| (EUR million) | 31.12.09 | 31.12.08 | MEUR | % |
--------------------------------------------------------------------------------
| Business Premises | 55.5 | 81.7 | -26.2 | -32.0 |
--------------------------------------------------------------------------------
| Housing | 132.9 | 141.5 | -8.6 | -6.1 |
--------------------------------------------------------------------------------
| International | 181.7 | 147.2 | 34.5 | 23.4 |
--------------------------------------------------------------------------------
| Other Operations | 79.2 | 65.7 | 13.5 | 20.6 |
--------------------------------------------------------------------------------
| Eliminations | -195.5 | -178.9 | -16.7 | |
--------------------------------------------------------------------------------
| Group, total | 253.8 | 257.2 | -3.4 | -1.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories | IFRS | IFRS | change, |
--------------------------------------------------------------------------------
| (MEUR) | 31.12.09 | 31.12.08 | MEUR |
--------------------------------------------------------------------------------
| Land areas and plot-owning companies | 153.0 | 142.1 | 10.9 |
--------------------------------------------------------------------------------
| Business Premises | 27.8 | 24.6 | 3.2 |
--------------------------------------------------------------------------------
| Housing | 41.4 | 41.6 | -0.1 |
--------------------------------------------------------------------------------
| International | 83.6 | 76.0 | 7.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Work in progress | 34.4 | 100.8 | -66.4 |
--------------------------------------------------------------------------------
| Business Premises | 0.0 | 30.0 | -30.0 |
--------------------------------------------------------------------------------
| Housing | 20.4 | 57.3 | -36.9 |
--------------------------------------------------------------------------------
| International | 14.0 | 13.6 | 0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares in completed housing | 86.4 | 34.0 | 52.4 |
| corporations and real estate companies | | | |
--------------------------------------------------------------------------------
| Business Premises | 25.5 | 0.0 | 25.5 |
--------------------------------------------------------------------------------
| Housing | 55.5 | 30.6 | 24.9 |
--------------------------------------------------------------------------------
| International | 5.5 | 3.3 | 2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other inventories | 17.6 | 17.9 | -0.3 |
--------------------------------------------------------------------------------
| Business Premises | 5.1 | 5.0 | 0.0 |
--------------------------------------------------------------------------------
| Housing | 3.7 | 4.6 | -0.9 |
--------------------------------------------------------------------------------
| International | 9.9 | 9.3 | 0.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Inventories, total | 291.4 | 294.8 | -3.4 |
--------------------------------------------------------------------------------
| Business Premises | 58.4 | 59.6 | -1.2 |
--------------------------------------------------------------------------------
| Housing | 121.0 | 134.0 | -13.1 |
--------------------------------------------------------------------------------
| International | 112.9 | 102.1 | 10.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital | IFRS | IFRS | change, | change, |
--------------------------------------------------------------------------------
| (EUR million) | 31.12.09 | 31.12.08 | MEUR | % |
--------------------------------------------------------------------------------
| Business Premises | 42.0 | 63.9 | -21.8 | -34.2 |
--------------------------------------------------------------------------------
| Housing | 123.1 | 138.9 | -15.8 | -11.4 |
--------------------------------------------------------------------------------
| International | 177.1 | 138.6 | 38.5 | 27.8 |
--------------------------------------------------------------------------------
| Eliminations and other | 7.7 | -2.0 | 9.7 | |
--------------------------------------------------------------------------------
| Group, total | 349.9 | 339.4 | 10.5 | 3.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business Premises | IFRS | IFRS | change, | change, |
--------------------------------------------------------------------------------
| (EUR million) | 1-12/2009 | 1-12/200 | MEUR | % |
| | | 8 | | |
--------------------------------------------------------------------------------
| Revenue | 208.0 | 349.1 | -141.1 | -40.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 18.0 | 27.8 | -9.8 | -35.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 0.9 | 0.9 | -0.1 | -5.8 |
--------------------------------------------------------------------------------
| Current assets | 87.8 | 116.0 | -28.1 | -24.3 |
--------------------------------------------------------------------------------
| Total assets | 88.7 | 116.9 | -28.2 | -24.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 11.0 | 1.1 | 9.9 | 885.1 |
--------------------------------------------------------------------------------
| Current liabilities | 44.5 | 80.6 | -36.0 | -44.7 |
--------------------------------------------------------------------------------
| Total liabilities | 55.5 | 81.7 | -26.2 | -32.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end of | 42.0 | 63.9 | -21.8 | -34.2 |
| period | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 35.2 | 60.8 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 255.3 | 265.7 | -10.4 | -3.9 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing | IFRS | IFRS | change, | change, |
--------------------------------------------------------------------------------
| (EUR million) | 1-12/2009 | 1-12/200 | MEUR | % |
| | | 8 | | |
--------------------------------------------------------------------------------
| Revenue | 154.1 | 127.9 | 26.3 | 20.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 4.9 | 0.7 | 4.2 | 590.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 1.4 | 1.9 | -0.5 | -25.9 |
--------------------------------------------------------------------------------
| Current assets | 150.0 | 156.5 | -6.4 | -4.1 |
--------------------------------------------------------------------------------
| Total assets | 151.5 | 158.4 | -6.9 | -4.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 68.2 | 58.3 | 9.9 | 17.0 |
--------------------------------------------------------------------------------
| Current liabilities | 64.7 | 83.2 | -18.5 | -22.3 |
--------------------------------------------------------------------------------
| Total liabilities | 132.9 | 141.5 | -8.6 | -6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end of | 123.1 | 138.9 | -15.8 | -11.4 |
| period | | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 3.8 | 0.7 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 200.7 | 154.0 | 46.7 | 30.3 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| International Operations | IFRS | IFRS | change, | change, |
--------------------------------------------------------------------------------
| (EUR million) | 1-12/2009 | 1-12/200 | MEUR | % |
| | | 8 | | |
--------------------------------------------------------------------------------
| Revenue | 22.9 | 60.1 | -37.2 | -61.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | -7.9 | 9.2 | -17.1 | -185.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 25.1 | 16.2 | 8.9 | 54.9 |
--------------------------------------------------------------------------------
| Current assets | 157.4 | 142.4 | 15.0 | 10.5 |
--------------------------------------------------------------------------------
| Total assets | 182.5 | 158.6 | 23.9 | 15.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment's liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 18.4 | 12.7 | 5.7 | 45.0 |
--------------------------------------------------------------------------------
| Current liabilities | 163.3 | 134.6 | 28.8 | 21.4 |
--------------------------------------------------------------------------------
| Total liabilities | 181.7 | 147.2 | 34.5 | 23.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Invested capital at end of | 177.1 | 138.6 | 38.5 | 27.8 |
| period | | | | |
--------------------------------------------------------------------------------
| Return on investment. % | -1.5 | 9.3 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order backlog at end of | 24.6 | 35.6 | -11.0 | -31.0 |
| period | | | | |
--------------------------------------------------------------------------------
4. Events after the reporting period
Value of new contracts in the Business Premises business area grew by EUR 55.7
million in January. The Housing business area sold 38residential units in
January (6 units in January 2008).
In January, SRV signed a contract for the construction of spa hotel Holiday Club
Saimaa in Lappeenranta, in the Rauha area. An aqua park with a wellness area, a
restaurant world and a multifunction ice arena will operate in connection with
the spa hotel. . SRV is acting as a contractor and investor in the project. The
spa hotel will be completed in summer 2011.
In January, SRV signed an agreement to buy a total of 28,000 square metres of
building rights from VVO Rakennuttaja Oy. The land areas transferred in the
agreement consist of leaseholds, purchase options and direct landed property.
These areas are located in the Metropolitan Helsinki area: in Arabianranta and
Kannelmäki in Helsinki and in Matinkylä in Espoo. The areas have been zoned for
the construction of apartment buildings.
On 5 January 2010, SRV implemented the agreement signed with Eero Heliövaara on
11 August 2009 and Nordea Bank AB (publ) acquired the shares for a per-share
price of EUR 4.45. At the same time SRV signed a 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.
