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Pöyry Oyj (HEL:POY1V) PÖYRY PLC Company Announcement 7 October 2008 at 9.00 a.m.
PÖYRY STRENGTHENS ITS GROWTH BASE BY REORGANIZING ITS INFRASTRUCTURE & ENVIRONMENT BUSINESS GROUP
As of 1 January 2009, Pöyry PLC will split its Infrastructure & Environment business group into three parts: Transportation, Water and Environment, and Construction Services.
The Infrastructure & Environment business group has consisted of three business areas with partly different client bases, markets and growth areas. The business areas will now be reorganized as separate business groups. The reorganization will create a clearer connection between Pöyry's long-term growth strategy and business structure. At the same time, it will enable investors to understand better the different segments of Pöyry's infrastructure and environment business.
Heikki Malinen, President and CEO, comments: "The Infrastructure & Environment business group has in recent years shown strong growth and improved its profitability. The reorganization will further improve the growth potential through closer focus and continued expansion. The reorganization will create a more market- and client-focused approach to business operations and enhance the further development of services."
Present business structure
Until now, Pöyry has conducted its operations through three business groups: Energy, Forest Industry, and Infrastructure & Environment.
The structure of the Energy business group will remain unchanged. The business group is Europe's leading provider of energy-related consulting and engineering services.
The Forest Industry business group will also remain unchanged, except that the Civil Engineering business unit with a staff of 250 will become a part of the Construction Services business group. The Forest Industry business group is global market leader both in consulting and engineering.
New business groups
Transportation
The Transportation business group will focus on rail transportation systems and on road, tunnelling and bridge projects, as well as on other transportation-related engineering and expert services. The 2008 net sales of the businesses which will form the new business group are estimated to be about EUR 107 million.
Demand will be strongest for energy-saving and environmentally friendly mass transit systems, which require high-quality consulting and engineering services. Investments in transportation systems are growing in Eastern Europe, Asia and Latin America. In Western Europe, investments in transportation systems are expected to remain stable.
Mr. Andy Goodwin (46) has been appointed President of the business group as of 1 January 2009, based in Zurich, Switzerland. Mr. Goodwin holds B Sc (Eng) and BComm degrees and joined Pöyry in 2000. He is currently President of the Transportation business area. Previously, he has served in various senior management positions in Europe, Asia and Africa.
Water and Environment
The Water and Environment business group will offer comprehensive engineering and expert services related to water and environmental technologies. The 2008 net sales of the businesses forming the new business group are estimated to be about EUR 84 million. The sufficiency and price of water resources represent a growing global challenge. To ensure the availability of water, new solutions will be needed both in developing countries and the metropolitan regions of industrialised countries. The treatment of municipal and industrial waste waters and other waste streams offer abundant new business opportunities throughout the world. New problems caused by climate change will also boost demand for the Water and Environment business group's services. Dr. Bernd Kordes (54) has been appointed President of the business group as of 1 January 2009, based in Mannheim, Germany. Dr. Kordes holds a Ph D (Civil Eng) degree. He joined Pöyry in 2005 in connection with the acquisition of GKW Holding GmbH where he served as President of the company. Dr. Kordes is currently President of the Water & Environment business area with broad international operations.
Construction Services
The Construction Services business group will offer comprehensive engineering and project management services for commercial building and industrial projects. Services will include project management, architectural design, structural engineering, building technology services and construction supervision. Consulting and expert services to real estate development, building maintenance, energy efficiency and ecological solutions will be expanded further.
The business group's operations, which until now have concentrated on Finland, the Baltic countries and Russia, will be expanded into other Eastern European countries and China. Structural engineering services to the industrial sector as well as architectural design and other specialised services will be strengthened and directed also to other international markets. The 2008 sales of the businesses constituting the new Construction Services business group are estimated at EUR 93 million.
Mr. Ari Asikainen (51) has been appointed President of the new business group as of 1 January 2009, based in Vantaa, Finland. Mr. Asikainen holds an M Sc (Tech) degree. He has a broad international experience in managing project businesses. Mr. Asikainen joined Pöyry in 1990 and is currently President of the Power and Heat business area.
All three presidents of the new business groups have been appointed members of the Group Executive Committee as of 1 January 2009.
Financial targets and comparable figures
The profitability target of Pöyry's business groups is a minimum of 8 per cent in the medium term. The long-term profitability target of the business groups is 10 per cent. The comparable figures according to the new business group structure will be released in connection with the publishing of the annual accounts for 2008.
Knowledge Management development programme
The president of the Infrastructure & Environment business group since 2000, Professor, Ph D (Tech) Risto Laukkanen (57) has been appointed Director of the Group-wide Knowledge Management development programme as of 1 January 2009. The goal of the development programme is to further improve the management of the Group's special expertise and data resources, and thus support Pöyry's future growth and profitability. In his new position Dr. Laukkanen reports to Heikki Malinen, President and CEO.
Pöyry is a global consulting and engineering firm focusing on the energy, forest industry and infrastructure & environment sectors. Pöyry's net sales in 2007 amounted to about EUR 720 million and it employs 8000 experts.
PÖYRY PLC
Heikki Malinen President and CEO
Teuvo Salminen Deputy to President and CEO
Additional information by: Heikki Malinen, President and CEO, Pöyry PLC tel. +358 10 33 21307, +358 400 464 276 Teuvo Salminen, Deputy to President and CEO, Pöyry PLC tel. +358 10 33 22872, +358 400 420 285
www.poyry.com
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