Interim Report January June Fredrik Strand, President and CEO Antti Heinola, CFO July 22, 2014

Transcription

1 Interim Reprt January June 2014 Fredrik Strand, President and CEO Antti Heinla, CFO July 22, 2014

2 Cntents Grup develpment Cash flw and wrking capital Financing Market utlk and guidance fr 2014

3 Prgressing twards ne cherent Caverin Mve frm the ld YIT financial hlding mdel int a cmpetitive cherent service and prject crpratin with cmmn prcesses and tls is prgressing well. Q2 results shuld be seen as an integrated part f verall perfrmance: Finland Sweden Nrway Estnia Denmark Latvia Russia Germany Lithuania Austria Pland The Czech Republic Rmania Caverin Crpratin (2013) Part f cmpleting the demerger and restructuring f peratins, nt an individual quarter. YIT (1912) Huber Oy (1879) Calr AB (1898) ABB building systems (1988) MCE AG building systems (1989) caverin GmbH (2007) M+W Zander (1998) Meissner + Wurst (1912) Krantz (1882) Zander (1950) Stangl KG (1929) MAB Anlagenbau Austria GmbH Rhr- und Heizungsbau GmbH (1955) Vest-Alpine MCE Austria Allmänna Ingeniörsbyrån (1901) Carl Christensen & C. Brdr. Petersens Eftf. A/S Gerdes & Wesenberg Mnies & Andersens Eftf E. Rasmussen/ER Electric A/S (1907) EB Installasjn (1988) Asea Brwn Bveri (1987) Asea Per Kure AS (1897) A/S Nrsk Elektrisk & Brwn Bveri (1908) Elektr Unin Natinal Industri (1917) Elektrisk Bureau AS (1882) Frgnerkilens Fabrikk Nrsk Elektrisk Aktielag (1873) AS Nrsk Viftefabrikk (1932) Elmek (1990) Emic AS (1992) Tehsistem SIA (2001) Caverin 3 Interim Reprt 1-6/2014

4 Strategic milestnes Targeting imprved prfitability Key target EBITDA ver 6% f revenue by the end f Reach 01 Fix 02 Build Operatinal excellence Develping internal prcesses and harmnizatin 03 Create Innvative and advanced slutins Develping business mix Strng grwth Back n track Operatinal excellence Mst efficient service cmpany Innvative and advanced slutins Strng wn cncepts and capabilities in bth prjects and services Strng cmpany image Increasing prfits Demerger and restructuring Excellent leadership Lean rganizatin and winning team Caverin 4 Interim Reprt 1-6/2014

5 Grup develpment

6 Q2/2014: Imprved wrking capital management Increasing prfit remains in fcus EBITDA EBITDA excl. nn-recurring items was EUR 2.9 millin (Q2/2013: EUR 16.0 millin). Activities relating t the demerger and restructuring is still partly nging. Prjects in Nrway and Denmark diluted prfitability. Overall prject prtfli reviewed mre clsely - cst estimates and prvisins revised. Order backlg Order backlg grew by 6% frm 6/2013 and by 1% frm 3/2014. At previus year s exchange rates fr crrespnding perid, rder backlg increased by 8%. Revenue At previus year s exchange rates fr crrespnding perid, revenue decreased by 7%. Reprted revenue decreased by 10% cmpared t Q2/2013. Wrking capital and perating cash flw Wrking capital decreased, in line with ur financial target. Cash flw after investments imprved and was EUR -9.4 millin (Q2/2013: EUR millin). Caverin 6 Interim Reprt 1-6/2014

7 Key figures EUR millin 4 6/14 4 6/13 Change 1 6/14 1 6/13 Change 1 12/13 Revenue % 1, , % 2,543.6 EBITDA excluding nn-recurring items EBITDA margin excluding nn-recurring items, % % % EBITDA % % 70.9 EBITDA margin, % Earnings per share, basic, EUR Wrking capital % % 46.0 Operating cash flw after investments Interest-bearing net debt, end f perid % % 86.5 Persnnel, average fr the perid 17,333 18,106-4% 17,354 18,229-5% 18,071 Cmparative figures fr 2013 are carve-ut figures fr the perids befre the effective date f the partial demerger (June 30, 2013). Caverin 7 Interim Reprt 1-6/2014

8 Grup revenue was EUR 588 millin in April June Grup revenue EUR millin /12: EUR 2, /13: 2, /12: X,XXX Revenue in April June decreased by 7% at the previus year s exchange rates fr crrespnding perid. In January June, revenue increased in Germany by 7% cmpared t the previus year, due t imprved rder backlg in In Sweden, revenue decreased mainly due t increased selectiveness in prjects. Revenue breakdwn by cuntry EUR millin Revenue by business area 1 6/ Sweden Finland Nrway Germany Austria Denmark Other cuntries 1 6/13 1 6/ Service and maintenance 54% (1 6/2013: 56%) Prjects 46% (44%) Caverin 8 Interim Reprt 1-6/2014

9 Service and maintenance revenue n par with the previus quarter Revenue decreased by 12% in April June cmpared t the previus year. Service and maintenance revenue The service and maintenance market was stable in all cuntries with reginal variatins within cuntries. General interest in life cycle services is increasing in all markets. 1 12/12: 1,542 (55%) 1 12/13: 1,409 (55%) Service and maintenance revenue, EUR millin % f ttal Grup revenue 56% 55% 54% 55% 56% 56% 54% 56% 55% 54% Caverin 9 Interim Reprt 1-6/2014

10 Prject business: Stable market develpment Revenue decreased by 4% in January June and 7% in April June, cmpared t the previus year. Prject business revenue New investments in building systems expected t increase slightly in the markets. 1 12/12: 1,261 (45%) 1 12/13: 1,134 (45%) Psitive signs can be seen in 290 tendering activity Prject business revenue, EUR millin % f ttal Grup revenue 44% 45% 46% 45% 44% 44% 46% 44% 45% 46% Caverin 10 Interim Reprt 1-6/2014

11 Striving fr excellence in prject business: Prjects mre clsely reviewed in all prject phases Prgressin twards ne cherent Caverin means tighter grip in prject prcess. Apprval Renewed and strict delegatin f authrity with clear apprval limits Prject business cncentrated in prject ffices Challenges in each phase will be tackled in a mre structured manner, in three levels: Operative, legal and executive level. Gvernance Changes in prject scpe r schedules must be cmmunicated and authrised Prject reviews Steering cmmittees in larger prjects Cmmissin Prjects cmmissined in a prfessinal manner Mre efficient claims management Caverin 11 Interim Reprt 1-6/2014

12 EBITDA develpment: Activities relating t the demerger and restructuring still nging EBITDA, EUR millin EBITDA margin, % 1 12/12: 85.3 (3.0%) 1 12/13: 70.9 (2.8%) Prjects in Nrway and Denmark diluted the prfitability in April June. Overall prject prtfli reviewed mre clsely cst estimates and prvisins revised Net effect f nn-recurring items impacting EBITDA was EUR -0.8 millin in April June. 3.5% 3.6% 4.0% % 3.7% % 1.5% 2.0% 1.6% % Caverin 12 Interim Reprt 1-6/2014

13 Psitive develpment in rder backlg Order backlg EUR millin 1,470 1,429 1,340 Order backlg increased by 6% frm the end f June 2013 and by 1% frm the end f March ,199 1,315 1,274 1,296 1,241 1,335 1,350 Changes in freign exchange rates decreased the rder backlg in January June 2014 by EUR 21.0 millin cmpared t the crrespnding perid f the previus year. 3/12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 Winteshall ffice building, Nrway. Illustratin: Link Architects Caverin 13 Interim Reprt 1-6/2014

14 Several large rders published in April June Wintershall ffice building, Stavanger, Nrway Ttal delivery f all technical systems. The energy efficient slutins in the prperty meet the criteria fr the BREEAM NOR standard/excellent. Service areas: Advisry Services, Design & Engineering, Prject Executin, Prject management. Disciplines: Heating & Sanitatin, Ventilatin & Air Cnditining, Cling, Electricity, Infrmatin and Cmmunicatin Services, Security & Safety, Autmatin. Cntract value: EUR 11 millin Messe Düsseldrf, Germany Mdernisatin f ventilatin, air cnditining and sprinklers in the 15-meter-high trade fair halls. The ventilatin systems are prvided by Krantz Kmpnenten (Caverin s wn trademark). Service area: Prject Executin Disciplines: Ventilatin & Air Cnditining, Security and Safety Cntract value: EUR 10 millin Heinrich Heine University, Düsseldrf, Germany Natinal Rail Administratin, Osl, Nrway Puij Hspital, Kupi, Finland Delivery f several technical slutins fr the engineering rm f the university campus. Service areas: Prject Executin, Prject Management, Design & Engineering Disciplines: Heating & Sanitatin, Ventilatin, Cling, Autmatin Cntract value: EUR 6 millin High and lw vltage electrical systems t the new Høvik statin in the Lysaker Sandvika rail line renvatin prject. Service area: Prject Executin Disciplines: Electricity Cntract value: EUR 6 millin Delivery f the heating, ventilatin and cling systems and piping fr the new Säde building in the university hspital area. Service areas: Prject Executin, Prject Management, Design & Engineering Disciplines: Heating & Sanitatin, Ventilatin & Air Cnditining, Cling Cntract value: EUR 4 millin Caverin 14 Interim Reprt 1-6/2014

15 Several large rders published in April June Osl metr, Nrway Plumbing installatins t the new maintenance dept in Avløs. Service area: Prject Executin Disciplines: Sanitatin Cntract value: EUR 4.8 millin Bergelandsgården, Stavanger, Nrway Delivery f electrical systems, piping, cling and ventilatin systems t an ffice building t be renvated in accrdance with the Nrwegian passive huse standard. Service area: Prject Executin Disciplines: Electricity, Heating & Sanitatin, Cling, Ventilatin & Air Cnditining Cntract value: EUR 7 millin BW Twer ffice building, Lahti, Finland Ttal technical slutin including all technical building systems. Separate agreement n service and maintenance (ServiFlex). Service area: Design & Enigneering, Prject Executin Disciplines: Heating and Sanitatin, Ventilatin & Air Cnditining, Cling, Electricity, Infrmatin and Cmmunicatin Services, Security & Safety, Autmatin. Cntract value: EUR 3.5 millin Kemijki s Seitakrva hydrpwer plant, Nrthern Finland Mdernisatin f the machinery and related electricity and autmatin systems with the aim f increasing the pwer capacity f the plant. Service area: Prject Management, Prject Executin Disciplines: Industrial Installatins, Electricity, Autmatin Cntract value: Nt disclsed Frtum s nuclear plant, Lviisa, Finland Installatin f steel frame structures, wall and rf insulatins and pipelines fr fur cling twers. Separate agreement n service and maintenance fr 3 years. Service area: Prject Executin Disciplines: Industrial Installatins, Prcess Piping, Electricity, Autmatin Cntract value: EUR 2 millin Caverin 15 Interim Reprt 1-6/2014

16 17,417 emplyees at the end f June Emplyees by cuntry at the end f June 2014 In In Q2, Q3, fcus we fcused n acquiring especially new cmpetences n building strng and key service leaders t build culture, successful ensuring future current Caverin. and future Grup prfessinals Executive and Vice building President cmmn and peple CEO f prcesses Divisin and Sweden platfrms. appinted (annunced n July 18, 2014). Strngly investing in future yung talents: Apprx. 300 summer trainees and 300 ther trainees and apprentices currently emplyed. Finland 28% Sweden 23% Nrway 18% Germany 14% Denmark 6% Austria 4% Other cuntries 8% Caverin cntinued t build the cmmn peple prcesses and platfrms. Occupatinal safety rates have shwn favrable prgress. Caverin is ne f the industry benchmarks in its practices. Caverin 16 Interim Reprt 1-6/2014

17 Cash flw and wrking capital

18 Imprved cash flw Operating cash flw after investments EUR millin Rlling 12 mnths Psitive develpment in wrking capital supprted cash flw in April June Investments [Highlight] in 4 6/2014 ttalled EUR 5.4 millin, mainly relating t the develpment f cmmn business prcesses N significant capex requirement Cntinuus develpment and investments in technlgies, prcesses and cmpetences. 1 3/12 4 6/12 7 9/ /12 1 3/13 4 6/13 7 9/ /13 1 3/14 4 6/14 Caverin 18 Interim Reprt 1-6/2014

19 Psitive prgressin twards reaching a negative wrking capital Wrking capital Wrking capital, EUR millin Wrking capital t sales, % (LTM) Wrking capital decreased by 51% cmpared t 6/2013. Increase by EUR 2.6 millin cmpared [Highlight] t 12/2013. Fcus n invicing % 3% 4% 3% 3% 4% 5% 2% 3% 2% 3/2012 6/2012 9/ /2012 3/2013 6/2013 9/ /2013 3/2014 6/2014 Caverin 19 Interim Reprt 1-6/2014

20 Financing

21 Balanced debt structure Debt maturity EUR millin Lan prtfli Banks 83% Interest rate type (after hedges) Lan prtfli ttal: EUR millin Cmmercial papers 10% Insurance cmpanies 5% Others 2% Fixed interest 42 % Flating interest 58 % Average interest rate after hedges: 2.10% Caverin 21 Interim Reprt 1-6/2014

22 Financing psitin enables the implementatin f the Grup s strategy Develpment f net debt EUR millin /13 9/13 12/13 3/14 6/14 Grss debt t net debt EUR millin Liquidity reserve EUR 130 millin Unused credit facilities Cash and cash equivalents Lng-term brrwings Shrt-term brrwings Cash and cash equivalents Net debt Caverin 22 Interim Reprt 1-6/2014

23 Market utlk and guidance

24 Market utlk fr Caverin s business in 2014 Service and maintenance Prject deliveries Caverin view Sweden Finland Service and maintenance Grwth pprtunities favrable in all f Caverin s divisins. Nrway The demand fr life cycle slutins is expected t increase. Germany Prject deliveries Austria New investments in building systems expected t increase slightly. Denmark Psitive signs can be seen. Surce: Eurcnstruct, June 2014 Caverin 24 Interim Reprt 1-6/2014

25 Guidance published n July 14, 2014 EBITDA guidance fr 2014 lwered Revenue guidance reiterated Revenue guidance Caverin estimates that the Grup s revenue fr 2014 with cmparable exchange rates will remain at the previus year's level. EBITDA guidance Caverin estimates that the EBITDA excluding nn-recurring items fr 2014 will remain at the previus year's level. In 2014 the targeted EBITDA level will be reached by Imprving the peratinal efficiency Grwing the service and maintenance business Increasing the prject business in Germany The ptential changes in general macrecnmic envirnment may have an effect n Caverin s business and custmers. Caverin 25 Interim Reprt 1-6/2014

26 Dividend plicy Dividend payut at least 50 per cent f the net prfit fr the perid. Dividend f EUR 0.22/share paid n April 2, EUR 27.6 millin in ttal (78% f the net prfit in 2013) Caverin 26 Interim Reprt 1-6/2014

27

28 Additinal slides

29 33,134 sharehlders n June 30, 2014 Largest sharehlders Shares, Majr sharehlders n June 28,2013 pcs % f all shares Change after March, pcs Change, % 1. Structr S.A. 17,140, Herlin Antti and cmpanies cntrlled by him 12,030, ,637, Varma Mutual Pensin Insurance Cmpany 4,845, ,085, OP funds 4,317, , Fndita funds 4,073, , Ilmarinen Mutual Pensin Insurance Cmpany 3,904, , Nrdea funds 3,649, , Aktia funds 1,738, , The State Pensin Fund 1,470, El Pensin Cmpany 1,344, Brtherus Ilkka 1,304, Danske Invest funds 1,144, , Evli funds 923, , Etera Mutual Pensin Insurance Cmpany 757, Odin funds 526, ,210, Säästöpankki funds 506, Föreningen Knstsamfundet rf 423, Fundatin f Brita Maria Renlunds minne 412, Sigrid Jusélius Fundatin 361, SEB Gyllenberg funds 352, , largest, ttal 61,225, Owners by categry by shares wned Nminee registered and nn-finnish hlders 34% (March 31, 2014: 35%) Husehlds 20% (20%) General gvernment 11% (12%) Financial and insurance crpratins 14% (14%) Nn-prfit institutins 6% (6%) Nn-financial crpratins and husing crpratins 15% (12%) A ttal f 33,134 sharehlders ( : 32,590) All shares 125,596, Caverin 29 Interim Reprt 1-6/2014

30 Thmas Lundin appinted as Grup Executive Vice President and CEO f Divisin Sweden Brn 1960, Swedish citizen Mving t Caverin frm G4S Secure Slutins, Sweden, where he has wrked in varius executive psitins since 2009, mst recently as Managing Directr. Has led a turnarund f the cmpany int prfitable business. Member f the Grup Management Bard, reprting t the President and CEO Fredrik Strand Mre than 12 years f experience in Managing Directr psitins: Bravida Fire & Security (Scandinavia and Slvakia) and Synerc AB (Sweden and Nrway), amng thers. Graduate frm Stckhlm Schl f Ecnmics (IFL Executive Educatin, Internatinal Executive Prgram) and frm IHM Business Schl in Sweden (Business Administratin and Ecnmics). Als hlds degrees frm Swedish Natinal Plice Academy (Law Enfrcement, Plitical Science and General Law) and Natinal Defence Cllege (Infrmatin and IT Security). Will start in his new psitin n January 15, 2015, at the latest. Current Managing Directr fr Divisin Sweden Ulf Kareliussn will cntinue in his psitin until retirement, after which Mr. Lundin will take up his psitin. Caverin 30 Interim Reprt 1-6/2014