Road Show Frankfurt May 16, Fredrik Strand, President and CEO Antti Heinola, CFO Milena Hæggström, Head of Investor Relations

Transcription

1 Road Show Frankfurt May 16, 2014 Fredrik Strand, President and CEO Antti Heinola, CFO Milena Hæggström, Head of Investor Relations

2 Contents Business and strategy Market overview Financials and guidance Appendix

3 Business and strategy

4 - a European company Our roots Norway Sweden Finland Estonia Denmark Latvia Russia Germany Austria Lithuania The Czech Republic Poland Romania Corporation (2013) YIT (1912) Huber Oy (1879) Calor AB (1898) M+W Zander (1998) Meissner + Wurst (1912) Krantz (1882) Zander (1950) Stangl KG (1929) caverion GmbH (2007) MAB Anlagenbau Austria GmbH Rohr- und Heizungsbau GmbH (1955) Voest-Alpine MCE Austria Allmänna Ingeniörsbyrån (1901) Carl Christensen & Co. 4 ABB building systems (1988) Brdr. Petersens Eftf. A/S Gerdes & Wesenberg Monies & Andersens Eftf E. Rasmussen/ER Electric A/S (1907) EB Installasjon (1988) Asea Brown Boveri (1987) Asea Per Kure AS (1897) A/S Norsk Elektrisk & Brown Boveri (1908) Elektro Union National Industri (1917) Elektrisk Bureau AS (1882) Frognerkilens Fabrikk Norsk Elektrisk Aktielag (1873) AS Norsk Viftefabrikk (1932) Elmek (1990) Emico AS (1992) Tehsistem SIA (2001) Road Show Presentation May 2014 MCE AG building systems (1989)

5 in brief designs, builds, operates and maintains user-friendly and energy-efficient solutions for buildings, infrastructure and industrial plants. Revenue by country Personnel EBIT by country 61 EUR million 2.2% of revenue Sweden 26% Finland 21% Norway 20% Germany 18% Austria 6% Denmark 5% Other countries 3% Finland 27% Sweden 22% Norway 20% Germany 14% Austria 4% Denmark 6% Other countries 7% Revenue based on the Group company location Key figures in 2013 Revenue 2,544 EUR million EBITDA 70.9 EUR million (2.8% of revenue) EBIT 49.4 EUR million (1.9% of revenue) Personnel at year s end 2013 figures: 1-6/2013 carve-out /2013 actual. 5 Road Show Presentation May 2014

6 Strategy 2016 Vision We are a leading European provider of advanced and sustainable life cycle solutions for buildings and industries. Mission We design, build, operate and maintain user-friendly and energy-efficient solutions for buildings, infrastructure and industrial plants. Financial targets Profitability (EBITDA) over 6% of revenue Average annual revenue growth > 10% Negative working capital Strategic focus areas Increasing profits Strong company image Strong growth Excellent leadership Innovative and advanced solutions Operational excellence Values Step ahead + Cooperation + Responsibility + High performance 6 Road Show Presentation May 2014

7 Strategic milestones Targeting improved profitability Key target EBITDA over 6% of revenue by the end of Reach 01 Fix 02 Build Operational excellence Developing internal processes and harmonization 03 Create Innovative and advanced solutions Developing business mix Strong growth Back on track Operational excellence Most efficient service company Innovative and advanced solutions Strong own concepts and capabilities in both projects and services Strong company image Increasing profits Demerger and restructuring Excellent leadership Lean organization and winning team 7 Road Show Presentation May 2014

8 s market offering Advisory Services Design & Engineering Services Project Management Project Execution Technical Maintenance Managed Operations Managed Life Cycle Public Industry Real estate owners and developers Value proposition for each client segment Commercial view for each service area Real estate users General contractors Delivery view for projects and services Disciplines

9 s service areas Project Execution Project Management Design & Engineering Services Managed Life Cycle Managed Operations Advisory Services Technical Maintenance

10 Our vision: To be a leading European provider of advanced and sustainable life cycle solutions for buildings and industries We understand the complexity of buildings and processes. We have technical and management skills in all disciplines throughout the life cycle. The life cycle view is included in everything we do. We manage the life cycle - from individual technology to advanced total solutions - and decrease the costs related to the property. Life cycle model decreases the costs related to the property in the long run Conventional model Life cycle model Energy Maintenance Investment 10 Road Show Presentation May 2014

11 M&A as a growth driver 50% of revenue growth over cycle from acquisitions M&A criteria o Good strategic fit Geographical coverage Business portfolio Customer sectors o Complementary skills & resources o Business culture o Value creation potential o Profitability turn-around o Strong local market position Valuation criteria o Internal valuation always prepared o Key multiples analysed: o EV/Sales o EV/EBITDA o EV/EBIT o P/E o Payback time o Multiple levels vary depending on the target as well as market situation 11 Road Show Presentation May 2014

12 Market overview

13 has strong growth potential in fragmented European markets Company revenues EUR million Cofely* Bilfinger SE** Royal Imtech SPIE 7,714 6,309 4,945 4,563 2,544 s position in the European building systems market Text Text Text Text Text Text MITIE 2,393 5 Bravida Strabag Property and Facility Services* Alpiq Intec 1, Company revenues for *) Cofely and Strabag: 2012 figures. **) Bilfinger SE includes Industrial and Building & Facility segments. Source: Company information,. 13 Road Show Presentation May 2014

14 Market outlook for s business in 2014 Service and maintenance Project deliveries view Sweden Finland Norway Germany Austria Denmark Russia Service and maintenance o Growth opportunities favorable in all of s divisions. o The demand for life cycle solutions is expected to increase. Project deliveries o New investments in building systems expected to increase slightly. o Positive signs can be seen. Source: Euroconstruct, December Road Show Presentation May 2014

15 Financials and guidance

16 Group revenue Targeting average annual growth in revenue of > 10% by the end of 2016 Group revenue EUR million /12: EUR 2,803 12/13: 2, /12: X,XXX Revenue decreased by 3% compared to January March At the previous year s exchange rates for the corresponding period, revenue increased by 1%. 1-3/12 4-6/12 7-9/ /12 1-3/13 4-6/13 7-9/ /13 1-3/14 Main effect in Norway EUR -16 million. Revenue breakdown by country EUR million Revenue by business area Service and maintenance 55% Sweden Finland Norway Germany Austria Denmark Other countries 3/13 3/14 Projects 45% 16 Road Show Presentation May 2014

17 EBITDA Targeting EBITDA margin of over 6% by the end of 2016 EBITDA EBITDA, EUR million EBITDA margin, % Excluding non-recurring items, EBITDA increased by 7% and was EUR 13.1 million in January March. 12/12: 85.3 (3.0%) 12/13: 70.9 (2.8%) Non-recurring payment of EUR million 3.5 related to the final settlement of an old joint venture in Denmark Sweden: profitability improved according to plan. 3.5% 3.6% 4.0% % 1.5% 2.0% 3.9% 3.7% % Norway: project operations diluted profitability in January March, but profitability is expected to improve in /12 4-6/12 7-9/ /12 1-3/13 4-6/13 7-9/ /13 1-3/14 17 Road Show Presentation May 2014

18 Asset-light, cash flow business Targeting negative working capital by the end of 2016 Working capital EUR million 120 5% % 3% Working capital Working capital to sales, % (LTM) In working capital management the focus is on invoicing and trade receivables and liabilities. 9/ /2013 3/2014 Operating cash flow after investments EUR million 5.1 Rolling 12 months Cash flow in 1 3/2014 was burdened by IT prepayments and investments of EUR 5.8 million and non-recurring payment of EUR 3.5 million related to fhe final settlement of an old joint venture in Denmark. Actions to reduce seasonality of cash flow /12 4 6/12 7 9/ /12 1 3/13 4 6/13 7 9/ /13 1 3/14 o No significant capex requirement Continuous development and investment in technologies, processes and competences 18 Road Show Presentation May 2014

19 Order backlog as an indicator of future revenue Order backlog EUR million Order backlog excludes service ad-hoc orders/one timers 1,470 1,429 1,340 1,199 1,315 1,274 1,296 1,241 1,335 Order backlog increased by 8% from the end of December 2013 and by 2% from the end of March Changes in foreign exchange rates decreased the order backlog in January March 2014 by EUR 33 million compared to January March /12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 19 Road Show Presentation May 2014

20 Financing position enables the implementation of the Group s strategy Net debt 100 EUR 104 million 0 Sarake1 6/13 9/13 12/13 Sarak e1 Development of net debt EUR million /13 9/13 12/13 3/14 Net debt at the end of March 2014 EUR million 146 Long-term borrowings 74 Short-term borrowings 116 Cash and cash equivalents 104 Net debt Liquidity reserve EUR 195 million at the end of March 2014 EUR million Unused credit facilities Cash and cash equivalents 20 Road Show Presentation May 2014

21 Guidance for 2014 and dividend policy reiterated Revenue guidance estimates that the Group s revenue for 2014 with comparable exchange rates will remain at the previous year's level. EBITDA guidance estimates that EBITDA for 2014 excluding non-recurring items will grow clearly to EUR million. Dividend policy: Dividend payout at least 50 per cent of the net profit for the period. In 2014 the EBITDA increase will be executed by o Improving the operational efficiency o Growing the service and maintenance business o Increasing the project business in Germany o Dividend of EUR 0.22/share paid on April 2. o EUR 27.6 million in total (78% of the net profit in 2013) o Effective dividend yield of 2.5% The potential changes in general macroeconomic environment may have an effect on s business and customers. 21 Road Show Presentation May 2014

22 Appendix

23 Key figures EUR million 3/14 3/13 Change 12/13 Revenue % 2,543.6 EBITDA excluding non-recurring items % 81.7 EBITDA margin excluding non-recurring items, % EBITDA % 70.9 EBITDA margin, % Earnings per share, basic, EUR % 0.28 Working capital % 46.0 Operating cash flow after investments Net profit for the period % 35.5 Interest-bearing net debt, end of period Personnel, average for the period 17,375 18,381-5% 18,071 Comparative figures for 2013 are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013). 23 Road Show Presentation May 2014

24 Acquisitions have contributed to revenue growth through the cycle Group revenue EUR Revenue, million EUR million 1,680 1,797 1,892 2,140 2,396 2,125 2,353 2,876 2,803 2, , Calor AB ABB Building Systems MCE AG caverion GmbH Acquisition period Integration and development Acquisition period Integration and development figures based on official segment reporting, i.e. sum of building systems and industrial services related revenue figures of YIT, including also internal sales figures are external revenue figures based on s carve-out segment reporting figures: 1-6/2013 carve-out /2013 actual. 24 Road Show Presentation May 2014

25 EBITDA development EBITDA (excl. EBITDA from other operations) % % % 8.1% 7.4% % % % % % EBITDA, EUR million EBITDA margin, % Note: Building Systems segment figures in YIT reporting; official carve-out figures figures: 1-6/2013 carve-out /2013 actual EBITDA figures exclude EBITDA from other operations of EUR -6.1m, -7.1m, -7.4m and -5.0m respectively. EBITDA-% includes YIT Group internal sales for Road Show Presentation May 2014

26 Shareholders on April 30, 2014 Largest shareholders Major shareholders on June 28,2013 Shares, pcs % of all shares Change after Mar. 31, pcs Change, % 1. Structor S.A. 17,140, Herlin Antti 9,220, , Varma Mutual Pension Insurance Company 4,845, ,085, OP funds 4,607, , Ilmarinen Mutual Pension Insurance Company 4,056, Fondita funds 4,018, , Nordea funds 3,460, , Aktia funds 1,738, , Odin funds 1,736, The State Pension Fund 1,470, Danske Invest funds 1,397, , Elo Pension Company 1,344, Brotherus Ilkka 1,304, Evli funds 992, Etera Mutual Pension Insurance Company 757, Säästöpankki funds 506, Föreningen Konstsamfundet rf 423, Foundation of Brita Maria Renlunds minne 412, SEB Gyllenberg funds 405, , Sigrid Jusélius Foundation 361, largest, total 60,196, All shares 125,596, Owners by category by shares owned Nominee registered and non-finnish holders 36% (Mar 31, 2014: 35%) Households 20% (20%) General government 11% (12%) Financial and insurance corporations 14% (15%) Non-profit institutions 6% (6%) Non-financial corporations and housing corporations 13% (12%) A total of 33,067 shareholders ( : 32,590) 26 Road Show Presentation May 2014

27 s Board of Directors Re-elected by the AGM on March 17, 2014 Henrik Ehrnrooth (b. 1954) M.Sc. (Forest economics), B.Sc. (Econ.) Chairman of the Board Share ownership: 17,140,000* Independent of company: Yes Independent of owners: No Ari Lehtoranta (b. 1963) M.Sc. (Eng.) Vice Chairman of the Board Executive Vice President, Central and North Europe, Customer Experience at KONE Corporation. Share ownership: 0 Independent of company: Yes Independent of owners: Yes Anna Hyvönen (b. 1968) Lic. Tech. Executive Vice President, Finland & Baltics, Ramirent Plc Share ownership: 0 Independent of company: Yes Independent of owners: Yes Eva Lindqvist (b. 1958) M.Sc. (Eng.), MBA Professional board member Share ownership: 1,500 Independent of company: Yes Independent of owners: Yes Michael Rosenlew (b. 1959) M.Sc. (Econ.) Managing Director of Mikaros AB Share ownership: 0 Independent of company: Yes Independent of owners: Yes *) Henrik Ehrnrooth holds indirectly with his brothers Georg Ehrnrooth and Carl-Gustaf Ehrnrooth a controlling interest in Structor S.A., the largest shareholder of Corporation. 27 Road Show Presentation May 2014

28 Group Management Group key executives Fredrik Strand President and CEO Antti Heinola CFO Merja Eskola Human Resources Sakari Toikkanen Group Development Päivi Alakuijala Marketing & Communications Juhani Pitkäkoski Mergers & Acquisitions Business area executives Division executives Karl-Walter Schuster Project excellence Germany and CEE (acting) Jarno Hacklin Finland, Russia, Baltic Countries Erkki Huusko Industrial Services Matti Malmberg Service efficiency Ulf Kareliusson Sweden Knut Gaaserud Norway Peter Rafn Denmark Manfred Simmet Austria 28 Road Show Presentation May 2014

29 Megatrends support the demand for our services Increasing amount of technology in buildings Increasing demand for special technical competence as well as continuous service and maintenance. Outsourcing of services. Extensive service packages from one partner. Climate change, energy efficiency Tightening legislation, growing energy consumption and need for modernizations in energy sector. Energy efficiency key criterion for customers when selecting service provider. Digitalization Demand for automation and remote monitoring is increasing. Maintenance is increasingly based on preventive measures as well as on actual needs and conditions. Fragmented market A lot of small companies in the market. Extensive services is a competitive advantage especially in large projects. Growth potential especially in Germanspeaking areas. 29

30 s service areas Kaivomestari, Espoo, Finland Build services is responsible for the facilities management and maintenance of the Kaivomestari property owned by city of Espoo during the 25-year agreement period. Managed Operations High school, sports hall and swimming hall, among others. Project management Life cycle agreement based on publicprivate partnership (PPP) model The customer pays a fixed fee and guarantees agreed level of services and energy costs. Advisory Services The key target: to maintain the property s value so that after use it is still equivalent to new. Service area: Managed Life Cycle (Facilities management and maintenance, real estate administration, outdoor area maintenance, energy efficiency, 24/7 help desk and control room services) Disciplines: All technologies in the property Technical Lifespan: maintenance Size: 11,400 m 2 Contract value: Not diclosed

31 s service areas DC Tower, Vienna, Austria Build services has provided a vast range of building systems and project management to DC Tower, the highest building in Austria. The building features advanced green design and functionality. Managed Operations The building is 250 m tall with 60 floors, Project comprising of a hotel, apartments and management restaurants, among others. Built and equipped in accordance with the energy and sustainability requirements for green buildings issued by the European Commission. Advisory Services Advanced solutions such as heat recovery and rain drainage, among others. Service area: Project Management (Project Execution, Design & Engineering) Disciplines: Heating & sanitation, ventilation & air conditioning, cooling, automation Lifespan: Technical maintenance Size: ~140,000 m 2 Contract value: ~EUR 25 million

32 s service areas Seabrokers, Stavanger, Norway Build services maintains the technical systems in five office buildings owned by Seabrokers. The aim is to provide a healthy indoor climate and well-run properties for high profile tenants. Managed Operations Project management The ServiFlex agreement flexibly combines the maintenance of several technical disciplines flexibly in one agreement. Advisory Services Statoil, Gas de France, Sandnes Sparebank and ENI as tenants. One contact person from takes care of all technical issues. Service area: Technical Maintenance Disciplines: Heating & sanitation, ventilation & air conditioning, cooling, electricity, information & communication services, security & safety, automation, industrial installations, process piping. Lifespan: 2008 (ongoing) Technical Size: ~110,000 m 2 maintenance Contract value: ~ NOK 1,800,000/ year

33 s service areas The Friedrich Loeffler Institute, Riems Island, Germany Build services The technical systems delivered by contribute to the bio-safety in the laboratory that conducts research on dangerous veterinary viruses. Managed Operations The customer is one of the biggest BSL3/BSL5 biosafety laboratories worldwide. Project management has designed and delivered high-end clean room systems and gas extinguishing systems as fire protection for laboratories working in pressurized space. Technical solutions were developed in s own R&D centre in Aachen, Advisory Services Germany. Service area: Advisory Services (Project Execution) Disciplines: Ventilation & air conditioning, electricity, security & safety Lifespan: Size: 89 laboratories Technical maintenance Contract value: ~EUR 50 million

34 s service areas National courthouse, Viborg, Denmark Build services has designed and installed building systems for the new courthouse of Western Jutland. Once completed later this year, will also have full responsibility for managing operations in the facility during the upcoming 25 years. Managed Operations Life cycle agreement, Public-private Project partnership (PPP). Main contractor: A. management Enggaard The main target: high technical standards and improved life cycle performance Advisory Services Full responsibility for energy efficiency Service area: Design & Engineering (Advisory Services, Project Execution, Managed Operations, Managed Life Cycle) Disciplines: Heating & sanitation, ventilation & air conditioning, cooling, electricity. Lifespan: Technical maintenance Size: ~9,500 m 2 Contract value: Not disclosed

35 s service areas Karolinska University Hospital (Locum), Solna, Sweden Build services Karolinska is one of Scandinavia s premier health facilities. Together with Locum, has been taking care of technical maintenance and managing operations in the hospital area for over a decade. Managed Operations 47 employees assigned to work in the area. s 24/7 operations centre monitors all technical systems in the area, enabling corrective measures to be conducted without Project delay. management Covers highly critical areas, such as the hospital s back up power, sterilization technology and pneumatic tube system transferring medicines and blood, among others. Advisory Services The current cooperation is set to continue until 2019 with the target of increasing the energy efficiency by 6% annually. Service area: Managed Operations Disciplines: Heating & sanitation, ventilation & air conditioning, cooling, security and safety, electricity Lifespan: Size: ~400,000 m 2 Technical maintenance Contract value: Not disclosed

36 s service areas Vantaa Energy, Finland Build services Vantaa Energy is building the first waste-toenergy plant in the Helsinki region. By delivering industrial piping to the plant, is helping Vantaa Energy to meet strict environmental requirements. With the new plant, the emissions will be reduced by approx. 20%. Managed Operations Project management Advisory Services New process technology used in the plant required special competence and high quality. s delivery included engineering, prefabrication and installation of industrial piping. Prefabrication was used for shortening lead times and reducing needed manpower at site. Service area: Project Execution, (Project Management) Disciplines: Industrial piping (high pressure and low pressure pipings) Lifespan: Size: 23 km of pipingtechnical maintenance Contract value: Not disclosed

37 Examples of orders received in January March 2014 Rom Eiendom, delivery of building systems, Bergen, Norway Contract value: over EUR 11 million Sigmund Freud University, delivery of building systems, Vienna, Austria. Contract value: EUR 4.6 million Wohlgelegen conference centre, delivery of building systems, Heilbronn, Germany The contract value: ~EUR 4.5 million IZD Tower, technical maintenance, Vienna, Austria Contract value: EUR 3 million Ring Road III, a traffic monitoring system, Finland Contract value: EUR 2.5 million Opinmäki Campus, electrical works, Espoo, Finland The contract value: ~EUR 2 million Technical University of Munich, managed operations, Germany RTL, maintenance of the site, Cologne, Germany Uninett, AV solutions to 120 colleges and universities, Norway SMP, delivery of building systems to a new production plant, Schierling, Germany Borealis Polymers, the maintenance of the Kilpilahti production facilities, Kilpilahti, Finland 37 Road Show Presentation May 2014