interim report january september 2015 · 2018-05-08 · 13 interim report 1-9/2015 Öamtc...

Interim Report January–September 2015

Fredrik Strand, President and CEO

Antti Heinola, CFO October 23, 2015

Contents

o Group development

o Cash flow and working capital

o Financing

o Market outlook and guidance for 2015

Caverion

Summary of Q3/2015

3

EBITDA

° EBITDA for Q3 was in line with the previous year and amounted to EUR 21.3 million.

° Investments in common processes also reflected in operational expenses

° Burdened by a couple of projects in handover stage and legal expenses in Germany

Revenue

° Revenue for Q3 was in line with the previous year and amounted to EUR 574 million.

Order backlog

° The order backlog continued to increase reflecting the growth targets in Large Projects and Managed Services.

° Order backlog grew by 7% compared to the previous year and by 6% from the previous quarter and was EUR 1,477 million.

Working capital and operating cash flow

° Working capital amounted to EUR 36.1 million (Q3/2014: 49.4).

° Operating cash flow before financial and tax items was EUR -8.9 million (Q3/2014: 20.5).

Interim Report 1-9/2015

Caverion

Key figures

EUR million 7−9/15 7−9/14 Change 1−9/15 1−9/14 Change 1−12/14

Order backlog 1,477.2 1,379.5 7% 1,477.2 1,379.5 7% 1,323.6

Revenue 573.7 566.7 1% 1,775.3 1,746.4 2% 2,406.6

EBITDA 21.3 21.5 -1% 57.5 33.2 73% 67.5

EBITDA margin, % 3.7 3.8 3.2 1.9 2.8

Earnings per share, basic, EUR 0.08 0.08 0% 0.21 0.06 240% 0.22

Working capital 36.1 49.4 -27% 36.1 49.4 -27% -19.3

Operating cash flow before

financial and tax items -8.9 20.5 2.7 13.4 -80% 113.5

Interest-bearing net debt 101.9 131.6 -23% 101.9 131.6 -23% 50.2

Personnel, average for the period 17,369 17,329 17,286 17,346 17,300

4 Interim Report 1-9/2015

Caverion

Strong order backlog development in Q3

5

° The order backlog continued to increase reflecting the growth targets in Large Projects and Managed Services.

° Order backlog grew by 7% compared to the previous year and by 6% from the previous quarter.

° At comparable exchange rates the order backlog increased by 8 percent from the end of June 2015 and by 11 percent from the end of September 2014.

1,392 1,393 1,477

Order backlog EUR million


Q1 Q2 Q3 Q4

+4% +3% +7%

Comparative figures are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013).,

Caverion

Group revenue up from the previous year

6

428 383 359 339

98 90 50

436 396 377

299

108 103 56

Sweden Finland Germany Norway Austria Denmark Othercountries

1−9/14 1−9/15

Service and maintenance 53% (1−9/2014: 54%)

Projects47% (46%)

Revenue breakdown by country EUR million

° Revenue was EUR 1,775 million in January−September, an increase of 4 percent at previous year’s exchange rates.

° In Norway, technical installation and maintenance impacted by slowdown in the oil industry.

° Revenue -6% with comparable exchange rates during 1-9/2015

° Exit of one large services contract now fully visible.

Revenue by business area 1−9/2015

(2%) (4%) (5%) (-12%)

(11%) (14%)


(12%)

591 588 567

660

563

638

574

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15

Group revenue EUR million 1−12/14: 2,407

Caverion

Service and maintenance: activity level remained stable


o The technical installation and

maintenance market was

stable overall.

o In Norway, technical

installation and maintenance

was impacted by slowdown in

the oil industry.

o General interest in managed

services and life cycle

solutions increasing.

323 319

305

350

311 340

290

55% 54% 54% 53% 55% 53% 51%

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15

Service andmaintenancerevenue, EUR million

% of total Grouprevenue

Service and maintenance revenue

1−12/14:

1,297 (54%)

Caverion

Several multi-million projects announced in Q3

8

° The large project market is improving gradually.

° Demand remained favourable in a stable overall market environment in Germany, Austria and Sweden.

° Denmark, Finland, Eastern Europe and Industrial Solutions: Good development with new clients and contracts in the first nine months.

° In Norway there have been postponements in new investments.


268 270 262

310

253

298 284

45% 46% 46% 47% 45% 47% 49%

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15

Project businessrevenue,EUR million

% of total Grouprevenue

Project business revenue

1−12/14:

1,110 (46%)

Caverion

Profitability on track to reach financial target

9

9.6 2.1

21.5

34.3

14.2

22.0 21.3

1.6 0.4

3.8

5.2

2.5

3.4 3.7

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15

EBITDA, EUR million EBITDA margin, %

o EBITDA for Q3 was in line with the previous year and amounted to EUR 21.3 million.

o Investments in common processes also reflected in operational expenses

o In Norway, the general economy has been impacted by the slowdown in the oil industry.

o Burdened by a couple of projects in handover stage and legal expenses in Germany.

o The improved performance in January – September compared to last year is largely explained by the write downs done in the second quarter of 2014.

o The EBITDA performance during the rest of the year is expected to be in line with last year.


1−12/14: 67.5 (2.8%)

71.1 60.3 58.4

67.5 72.1

92.0 91.8

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15

EBITDA, EUR million (rolling 12m)

Caverion

Examples of orders received in July-September

Congress Center Hamburg, Germany Caverion provides total technical solutions worth over 43 million for the renovation of Congress Center Hamburg. This is one of the largest projects after the establishment of Caverion. Top priority in the project is to guarantee good indoor climate in all conditions. In order to achieve this, Caverion will install 10,000 data points to log air conditions and an intelligent air conditioning system. After renovation and comprehensive modernisation, Congress Center Hamburg will be one of Europe’s largest convention centres. ° Contract value: over EUR 43 million ° Service areas: Design & Engineering, Project Execution ° Technical disciplines: Heating and sanitation, Ventilation and air-conditioning, Cooling, Electricity,

Automation solutions and Fire extinguishing systems ° Lifespan: Center is scheduled to reopen in 2019. ° Client: CCH Immobilien GmbH & Co. KG. ° Size: 36,000 m2


agn leusmann GmbH/ Tim Hupe Architekten

Caverion


Technopolis Ozas office campus, Vilnius, Lithuania

Caverion provides building solutions for two newly constructed buildings complementing the Technopolis Ozas campus.

° Contract value: ~EUR 7 million

° Service areas: Design & Engineering, Project Execution, Project Management

° Technical disciplines: Heating and sanitation, Cooling, Ventilation and air conditioning, Security and safety and Automation

° Lifespan: completed in autumn 2016

° Client: Mitnija

° Size: 25,000 m2

11

Railway Farriseidet-Porsgrunn, Southern Norway

Caverion provides electricity solutions for a new, about 23 kilometers long, railway route. The line includes seven tunnels. In tracks and tunnels the scope of electricity works are mainly heating and exhaust fans, lighting and sub-distributions and emergency lightning.

° Contract value: over EUR 35 million

° Service areas: Project Execution, Project Management

° Technical disciplines: Electricity

° Lifespan: final design in autumn 2015, installation phase Jan 2016 – June 2018


Jarle Foss/Jernbaneverket

Trine Bratlie Evensen / Jernbaneverket

Caverion


Dorotheen Quartier, Stuttgart, Germany

Caverion provides building solutions for a new building complex. The multifunctional building will have nine floors and it will house shops, offices and apartments.

° Contract value: ~ EUR 14.2 million

° Service areas: Project Execution

° Technical disciplines: Heating and sanitation, Ventilation and air conditioning, Cooling, Automation, Security and safety

° Lifespan: Oct 2015 – Dec 2016

° Client: EKZ Grundstücksverwaltung GmbH

° Size: 38, 000 m²

12

Multi-fuel power plant, Naantali, Finland

Caverion delivers high-pressure piping to a new multi-fuel power plant. The delivery includes piping design, materials, prefabrication and industrial installation. Quality requirements for the delivery are strict, particularly for the pipe materials and welding. Total weight of the delivery is approximately 400 tonnes.

° Contract value: ~ EUR 8 million

° Lifespan: Planning phase starts in autumn 2015 and installations in spring 2016. Plant is operational in autumn 2017.

° Client: Turun Seudun Energiantuotanto Oy

Behnisch Architekten


Caverion


University Hospital Frankfurt, Germany

Caverion provides ventilation and air conditioning solutions to three new buildings of the University Hospital Frankfurt. Some of the rooms, e.g. laboratories, have very strict air purity requirements.

° Contract value: EUR 10.6 million

° Service areas: Project Execution

° Technical disciplines: Ventilation & air conditioning

° Lifespan: Scheduled to be completed in 7/2017

° Client: Hessisches Baumanagement

° Size: 50,000 m2


ÖAMTC Headquarters, Vienna, Austria Caverion provides building solutions to the new headquarters of ÖAMTC in Vienna. The office complex will utilise sustainable and integrated building technologies, such as geothermal heating. ° Contract value: EUR 7.0 million

° Service areas: Design & Engineering, Project Management and Project Execution.

° Technical disciplines: Heating and sanitation, Cooling, Ventilation & air conditioning, Security & safety and Automation

° Lifespan: Scheduled to be completed in autumn 2016.

° Client: ÖAMTC ° Size: 27,000 m²

Wörner Traxler Richter

Planungsgesellschaft mbH

Caverion

17,450 employees at the end of September

14

Employees by country at the end of September 2015


Finland 27%

Sweden 22%

Norway 17%

Germany 14%

Denmark 6%

Austria 4%

Other countries 11%

Group-wide effort to develop occupational health and safety with strong mindset: ° Safety and well-being of all

employees as a key target every day

During the period we continued to develop one winning Caverion team with strong performance culture: ° Talent, succession and

organisational management

° Leadership development

° Strengthening of pipelines of key professionals and trainees.

Cash flow and working capital

Caverion

At the end Q3 our working capital increased due to seasonal fluctuation.

Towards the end of the year we expect to reach our targeted level of negative working capital.

Active management of working capital Financial target: negative working capital

16

100

120

46

64

49 49

-19 -13

8

36

4% 5%

2%

3%

2% 2%

-1% -1%

0%

1%

Working capital,EUR million

Working capital to sales,% (LTM)

Working capital


6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15

Around EUR 10 million of working capital released since 9/2014:

° Advances received stable at a level of EUR 186.3 million (9/2014: EUR 181.2 million)

° Continued focus on invoicing process


Caverion

Rolling 12-month cash flow of EUR 103 million

17

101.3

-11.1

4.1

20.5

100.0

9.8 1.8

-8.9

108.5

90.1

105.4 114.8 113.5

134.4 132.2

102.8

10−12/13 1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15

Rolling 12 months

o Strong rolling 12-month cash flow supported by efficient management of working capital

Development and investment

o Continuous development and investment in technologies, processes and competences

o Capex investments (including acquisitions) of EUR 17.9 million in January-September, mainly relating to IT and the development of common business processes.


Operating cash flow before financial and tax items EUR million


Financing

Caverion

Balanced debt structure

19

o Loan portfolio total: EUR 142.5 million

o Average interest rate after hedges: 1.3%

Loan portfolio

Interest rate type (after hedges)

Debt maturity EUR million


Fixedinterest77%

Floatinginterest23%

29

39

22 22 20

10

2015 2016 2017 2018 2019 2020

Banks 83%

Commercialpapers 10%

Insurancecompanies 5%

Others 2%

Caverion

Strong balance sheet and liquidity

20

Gross debt to net debt EUR million

Liquidity reserve EUR 160 million EUR million

Net debt, EUR million


86

56 41

102

Long-term borrowings Short-termborrowings

Cash and cashequivalents

Net debt 41

119

Unused creditfacilities

Cash and cashequivalents

o Net debt remains in Q4 2014 level

o Strong cash position enabled voluntary repayment of gross debt by EUR 20 million

194 190

86 104

143 132

50 50

85 102

3,3x 3,4x

1,2x 1,5x

2,4x 2,3x

0,7x 0,7x 0,9x

1,1x

Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Net debt/EBITDA, Rolling 12 Months


Market outlook and guidance

Caverion

Market outlook for Caverion’s business in 2015


Large projects

o Positive trend in large tenders expected to continue.

o In certain industries (nuclear, mining, oil) less investments resulting in project postponements or cancellations.

o Demand for design & build of total technical solutions expected to develop favourably.

Technical installation and maintenance

o Expected to remain stable. o Requirements for increased

energy efficiency, better indoor conditions and tightening environmental legislation support positive market development.

o In Norway general economy impacted by slowdown in the oil industry.

Managed services

o Need for new services and the demand for life cycle solutions are expected to increase.

o Customers’ focus on their core operations opens opportunities in outsourced operation and maintenance mainly for public authorities, industries and utilities.

Overall changes in the operating environment due to growing uncertainty over the general macroeconomic development and mounting geopolitical tensions may lead to some

expected cautiousness in project start-ups and service demand.

Caverion

Guidance for 2015 reiterated

23

Revenue Caverion estimates that the Group’s revenue will remain at the previous year's level.

EBITDA Caverion estimates that the Group’s EBITDA margin for 2015 will grow significantly.


Caverion

Dividend policy

Dividend pay-out at least 50 per cent of the net profit for the period.

24

o A dividend of EUR 0.22 per

share was paid on April 2,

2015.


Additional slides

Caverion

30,416 shareholders on September 30, 2015

27

Major shareholders on June 28,2013

Largest shareholders

Shares,

pcs

% of share

Capital

Change after

June 2015,

pcs

Change after

June 2015,

%

1. Structor S.A. 17,840,000 14.20 0 0.00%

2. Herlin Antti and companies controlled by him 13,410,180 10.68 40,000 0.30%

3. Ilmarinen Mutual Pension Insurance Company 4,030,000 3.21 -165,551 -3.95%

4. Fondita funds 3,542,000 2.82 0 0.00%

5. Nordea funds 3,126,444 2.49 305,121 10.81%

6. Varma Mutual Pension Insurance Company 2,864,393 2.28 0 0.00%

7. OP funds 2,118,055 1.69 -192,463 -8.33%

8. Aktia funds 2,044,854 1.63 -110,658 -5.13%

9. The State Pension Fund 1,850,000 1.47 0 0.00%

10. Danske Invest funds 1,750,899 1.39 2,331 0.13%

11. SEB Investment Funds 1,618,440 1.29 313,835 24.06%

12. Elo Pension Company 1,344,468 1.07 0 0.00%

13. Evli funds 1,121,994 0.89 -40,024 -3.44%

14. Brotherus Ilkka 1,048,265 0.83 0 0.00%

15. Etera Mutual Pension Insurance Company 757,446 0.60 0 0.00%

16. Säästöpankki funds 721,052 0.57 -10,000 -1.37%

17. Odin funds 526,311 0.42 0 0.00%

18. Caverion Oyj 511,461 0.41 474 0.09%

19. Alfred Berg Finland 498,755 0.40 241,441 93.83%

20. Föreningen Konstsamfundet rf 423,002 0.34 0 0.00%

20 largest, total 61,148,019 48.69

All shares 125,596,092 100.00

Nominee registered and non-Finnishholders 35.2% (June 30, 2015: 35.6%)

Households19.0% (19.1%)

General government9.7% (9.8%)

Financial and insurance corporations14.3% (13.8%)

Non-profit institutions5.4% (5.5%)

Non-financial corporations and housingcorporations16.4% (16.3%)

Owners by category by

shares owned

30,416

owners

(June 30,

2015: 30,744)

interim report january september 2015 · 2018-05-08 · 13 interim report 1-9/2015 Öamtc...

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