interim report january–march 2015...2015/04/24 · interim report 13/2015- o the technical...

Interim Report January–March 2015

Fredrik Strand, President and CEO Antti Heinola, CFO April 24, 2015

Contents

o Group development o Cash flow and working capital o Financing o Market outlook and guidance

for 2015

Group development

Caverion

Summary of Q1/2015

4

EBITDA ° EBITDA improved by 48%. ° In one of the finalised low-

performing projects in Norway the provision made during Q2/2014 was insufficient, resulting in a negative effect of EUR 2.9 million.

° One technical incident in Finland resulting in a settlement with an industrial client, amounting to EUR 0.7 million.

Revenue ° Revenue was EUR 563.4

million, a decrease of 5 percent compared to the previous year.

° Changes in foreign exchange rates decreased Group revenue by EUR 16.1 million in January−March mainly caused by changes in SEK and NOK.

°

Order backlog ° Order backlog grew by 5% from

the end of last year and by 4% compared to the corresponding period previous year.

Working capital and operating cash flow ° Working capital amounted to

EUR -13.1 million (Q1/2014: 64.5.

° Operating cash flow before financial and tax items was EUR 9.8 million (Q1/2014: -11.1).

Interim Report 1-3/2015

Caverion

Key figures

EUR million 1−3/15 1−3/14 Change 1−12/14

Order backlog, end of period 1,392.4 1,335.3 4% 1,323.6

Revenue 563.4 591.3 -5% 2,406.6

EBITDA 14.2 9.6 48% 67.5

EBITDA margin, % 2.5 1.6 2.8

Earnings per share, basic, EUR 0.04 0.01 197% 0.22

Working capital -13.1 64.5 -19.3

Operating cash flow before financial and tax items 9.8 -11.1 113.5 Interest-bearing net debt, end of period 49.7 104.1 -52% 50.2

Personnel, average for the period 17,004 17,375 -2% 17,300

5 Interim Report 1-3/2015

Caverion

Activity on the same level with the previous year

6

1-6/12: X,XXX 608

653 595

688 591 588 567

660 563

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

Group revenue EUR million 1−12/13: 2,544

145 125 113

129

31 32 16

146 115 113 106

35 34 15

Sweden Finland Germany Norway Austria Denmark Othercountries

1−3/14 1−3/15

Service and maintenance 55% (1−3/2014: 55%)

Projects45% (45%)

Revenue breakdown by country EUR million

° Revenue was EUR 563.4 million,

a decrease of 5 percent compared to the previous year.

° Changes in foreign exchange rates decreased Group revenue by EUR 16.1 million in January−March mainly caused by changes in SEK and NOK.

° Revenue decreased mainly in Finland and Norway.

Revenue by business area 1−3/2015

(0%) (-8%) (0%) (-18%)

(11%) (9%)


(-9%)

1−12/14: 2,407

Caverion

Service and maintenance: activity level remained stable

7

340 363

320

386

323 319 305 350

311

56% 56% 54% 56% 55% 54% 54% 53% 55%

Service andmaintenancerevenue, EUR million% of total Grouprevenue

Service and maintenance revenue

1−12/13: 1,409 (55%)


o The technical installation and maintenance market has been stable overall.

o The general interest in managed services and life cycle solutions continued to increase.

1−12/14: 1,297 (54%)

Caverion

Several multi-million projects announced in Q1

8

268 290 274

302 268 270 262

310

253

44% 44% 46% 44% 45% 46% 46% 47% 45%

Project businessrevenue,EUR million% of total Grouprevenue

Project business revenue ° Finland: Project market is still

slow; however Caverion has been active and been able to secure some large new deals.

° Sweden: Market has been stable. ° Norway: Some postponements,

mainly due to lower activity related to the oil industry.

° Germany: Demand remained favourable.


1−12/13: 1,134 (45%)

1−12/14: 1,110 (46%)

Caverion

Profitability on track to reach financial target

9

9.4 12.9

23.3 25.3

9.6

2.1

21.5

34.3

14.2

1.5 2.0

3.9 3.7

1.6

0.4

3.8

5.2

2.5

EBITDA, EUR millionEBITDA margin, %

1−12/13: 70.9 (2.8%)

o EBITDA for Q1 amounted to EUR

14.2 million, up by 48 % from the previous year.

o In one of the finalised low-performing projects in Norway the provision made during Q2/2014 was insufficient, resulting in a negative effect of EUR 2.9 million.

o One technical incident in Finland resulting in a settlement with an industrial client, amounting to EUR 0.7 million.


1−12/14: 67.5 (2.8%)

Caverion

Stable order backlog development in Q1

10

° Order backlog grew by 5% from the end of last year and by 4% compared to the corresponding period previous year.

° Changes in foreign exchange rates increased the order backlog by EUR 11 million compared to the end of December 2014.

1,335 1,392

1,324

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

Order backlog EUR million


Q1 Q2 Q3 Q4

+4%

Caverion

Examples of orders received in January−March

Päivänkehrä school, Espoo, Finland Caverion implements the life cycle project of school modernisation and extension in cooperation with YIT. After the project delivery, Caverion is responsible for providing technical maintenance and managed operations, which also include the management of other than technical maintenance services, during the operational phase of 20 years. ° Service areas: Managed Life

Cycle (Design & Engineering, Project Execution, Project Management, Managed Operations)

° Technical disciplines: All building systems of the property

° Contract value: ~EUR 14 million ° Lifespan: project phase until

2017, operation until 2037 ° Size: 7,400 m²

11

DRV


Rygge Middle School, Østfold, Norway

Caverion provides a total technical solution for a new school building to be built according to passive house standards. The project has elements of the PPP model and it is realised in cooperation with Rygge Municipality, the general contractor Kruse Smith AS, and the architect Asplan Viak. ° Service areas: Project

Execution, Project Management ° Technical disciplines: All building

systems of the property ° Contract value: EUR 8.8 million ° Lifespan: 3/2015−12/2016 ° Size: 11,000 m²

Rygge Middle School

Caverion 12

ASFINAG, Austria Caverion equips the enclosed section of the motorway A10 with advanced tunnel technology: solutions for power supply, lighting, traffic and environmental data capturing, fire protection, video surveillance and alarm systems, among others. ° Service areas: Design &

Engineering, Project Management, Project Execution

° Technical disciplines: Electricity, Information and communication, Security and safety, Automation, Ventilation and air conditioning, Cooling

° Contract value: EUR 6 million ° Lifespan: 1/2015−2/2017 ° Size: 1.5 km-long tunnel

DRV Volkswagen Commercial Vehicles, Wrzésnia, Poland Caverion designs and installs high capacity ventilation and air conditioning systems for the vehicle assembly hall and office spaces at the new Volkswagen plant. To fulfill the client’s requirements for energy efficiency, all facilities feature heat recovery systems and ventilation equipment that meet the IE3 Premium efficiency standards. ° Service areas: Design &

Engineering, Project Execution ° Technical disciplines:

Ventilation and air conditioning ° Contract value: EUR 13 million ° Lifespan: 3/2015−Q3/2016 ° Size: 78,000 m2

Sør-Trøndelag College


Volkswagen


Caverion


Finnair, Finland Caverion continues technical maintenance and managed operations of Finnair’s properties in the Helsinki-Vantaa airport area. The agreement continues the cooperation that commenced in 2007, and EUR 2.5 million of energy cost savings have been achieved during the past five years. ° Service areas: Technical

Maintenance, Managed Operations

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

° Contract value: not disclosed ° Lifespan: 2015−2017, after

which valid until further notice. ° Size: over 30 sites, 170,000 m2

13

Schlumberger, Surgut district and Astrakhan, Russia Caverion provides maintenance of all technical systems in the oilfield services company’s production plants and other facilities. The contract employs close to 50 Caverion employees. ° Service areas: Technical

Maintenance ° Technical disciplines: Heating

and sanitation, Ventilation and air conditioning, Electricity, Information and communication services, Security and safety

° Contract value: not disclosed ° Lifespan: 2/2015−2/2018 ° Size: 370 000 m2


Finnair

Caverion

17,005 employees at the end of March

14

Employees by country at the end of March 2015


Finland 27%

Sweden 23%

Norway 16%

Germany 14%

Austria 4%

Denmark 6%

Other countries 10%

Continuous improvement for occupational health Safety of employees as a key target

During the period we continued to develop a winning team: ° Talent management ° Organisational development ° Leadership development ° International team

strengthened with key professionals and local trainees.

Cash flow and working capital

Caverion

Firm grip on managing working capital

16

100

120

46

64

49 49

-19 -13

4%

5%

2%

3%

2% 2%

-1% -1%

Working capital,EUR million

Working capital to sales,% (LTM)

Working capital

o More than EUR 130 million of

working capital released in the past 18 months through:

° Advances received stable at a level of EUR 177.1 million (7-9/2013: EUR 160.9 million)

° Improvement from more efficient invoicing process

° Decrease by EUR 78 million compared to 3/2014.

° Efficient working capital management enables us to develop our strategic business mix.

.


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

Caverion

Rolling 12-month cash flow up to EUR 134 million

17

7.2

-11.2

11.1

101.3

-11.1

4.1

20.5

100.0

9.8

108.5

90.1 105.4

114.8 113.5

134.4

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

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 of EUR 5.7 million in Q1, mainly relating to IT and the development of common business processes.


Operating cash flow before financial and tax items EUR million

Financing

Caverion

Debt structure

19

o Loan portfolio total:

EUR 128.8 million

o Average interest rate after hedges: 1.72%

Loan portfolio

Interest rate type (after hedges)

Debt maturity EUR million


49

76

2 2

2015 2016 2017 2018

Banks 92%

Insurancecompanies 6%

Others 2%

Fixedinterest8%

Floatinginterest92%

Caverion

Strong cash position enabled voluntary repayment of gross debt

20

Gross debt to net debt EUR million

Liquidity reserve EUR 158 million

Development of net debt EUR million


194 190

86 104

143 132

50 50

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

80

49 79

50

Long-term borrowings Short-termborrowings

Cash and cashequivalents

Net debt79

79

Unused creditfacilities

Cash and cashequivalents

o Net debt remains at

Q4/2014 level

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

Gross debt to net debt EUR million

Market outlook and guidance

Caverion

Market outlook for Caverion’s business in 2015

22 Interim Report 1-3/2015

Large projects

o Large tenders for buildings and industry expected to increase during the year.

o Low interest rates and availability of financing are expected to support investments.

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

Technical installation and maintenance

o Expected to be stable. o Requirements for increased

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

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

31,489 shareholders on March 31, 2015

27

Major shareholders on June 28,2013

Largest shareholders Shares,

pcs % of share

Capital

Change after December,

pcs

Change after December, %

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

2. Herlin Antti and the companies controlled by him 13,230,180 10.53 80,000 +0.61

3. Fondita funds 3,572,000 2.84 -278,000 -7.22

4. Ilmarinen Mutual Pension Insurance Company 3,548,591 2.83 -1,160,853 -24.65

5. Nordea funds 3,108,830 2.48 -155,740 -4.77

6. OP funds 3,001,357 2.39 32,741 +1.10

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

8. Aktia funds 2,100,512 1.67 -278,375 -11.70

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

10. Danske Invest funds 1,641,868 1.31 767,183 +87.71

11. Elo Pension Company 1,344,468 1.07 0 0.00

12. SEB Investment Funds 1,253,250 1.00 315,650 +33.67

13. Evli funds 1,243,705 0.99 140,000 +12.68

14. Brotherus Ilkka 1,185,740 0.94 -119,000 -9.12

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

16. Säästöpankki funds 586,052 0.47 0 0.00

17. Odin funds 526,311 0.42 -10,757 -2.00

18. Caverion Oyj 510,750 0.41 1,493 +0.29

19. FIM funds 477,689 0.38 39,178 8.93

20. Föreningen Konstsamfundet rf 423,002 0.34 0 0.00

20 largest, total 61,066,144 48.62

All shares 125,596,092 100.00

Nominee registered and non-Finnishholders 34.7% (Dec. 31, 2014: 33%)

Households19.5% (20.7%)

General government9.3% (10.1%)

Financial and insurance corporations14.3% (13.7%)

Non-profit institutions5.8% (5.9%)

Non-financial corporations and housingcorporations16.3% (16.6%)

Owners by category by shares owned

31,489 owners (32,837)

interim report january–march 2015...2015/04/24 · interim report 13/2015- o the technical...

Documents