Comments from Heikki Malinen, President and CEO/Interim Report Q1/2012, 25 April 2012

“The Group order stock remained at a good level of EUR 696.9 million. Order stock value declined clearly in the Industry business group where the large projects received in 2011 are now in the implementation phase. On the other hand, order stock value increased in the Energy business group where order intake was good especially in Central Europe, Middle-East and North America. Net sales increased by 16.4 per cent to EUR 209.5 million. Operating profit before restructuring costs was EUR 6.2 million (6.5) or 3.0 per cent (3.6) of net sales.

Compared with the year before, operating profit improved significantly in the Industry business group reflecting the progress of the large project in Latin America. The implementation of the projects is moving ahead as planned and due to the nature of some of the contracts the main profit recognition is expected to occur towards the latter part of the year. I am also pleased to report that Pöyry was recently awarded basic engineering and detail engineering contracts for site infrastructure for Klabin’s new pulp mill in Brazil. The capacity of the new state-of-the-art pulp mill is 1.5 million tonnes per annum and the start-up of the mill is planned for the third quarter of 2014. The final investment decision is expected later this year. Overall, the Industry business group has achieved a good turnaround after a tough 2009-2010. Operating profit also improved slightly in the new Urban business group where restructuring of the business and development of the portfolio remained a priority.

Operating profit in the Energy business group was a disappointment reflecting the on-going transition, lower than expected activity due to demand driven issues in certain weak markets and some challenging projects. Actions continue to be taken to adapt capacity to the work-load as necessary. The high order stock at the end of the quarter is a solid foundation when looking forward to the latter part of the year. After a good turn-around in the Management Consulting business group in 2011 the first quarter of 2012 was disappointingly weak. Positively, performance in the European main markets was quite stable compared to the year before despite the increased economic uncertainty which typically impacts management consulting business quickly. To react to changes in client needs, investments are made to broaden the scope of our consulting offering.

At the Group level we continue with operational excellence programme and our group wide growth enabling initiatives – Large Projects, Sales & Marketing, Way of Working and Thought Leadership - with the aim to streamline our operations and office network, improve core processes as well as invest in competence development.”