Interim Report January September Fredrik Strand, President and CEO Antti Heinola, CFO October 31, 2014

Transcription

1 Interim Reprt January September 2014 Fredrik Strand, President and CEO Antti Heinla, CFO Octber 31, 2014

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

3 Grup develpment

4 Q3/2014: Prfitability and cash flw increased, peratinal imprvement accrding t the plan Order backlg Order backlg grew by 6% frm 9/2013 and by 2% frm 6/2014. At previus year s exchange rates fr crrespnding perid, rder backlg increased by 8% in Q3. Revenue At previus year s exchange rates fr crrespnding perid, revenue decreased by 3%. EBITDA Prfitability imprved frm Q2 and the EBITDA margin excl. nn-recurring items was at the level f Q3/2013. The turnarund f the Nrwegian prject peratins has prgressed well, accrding t plan. Wrking capital and perating cash flw Wrking capital decreased in line with ur financial target and was EUR 49.4 millin (Q3/2013: 119.9). Operating cash flw befre financial and tax items imprved t EUR 20.5 millin (Q3/2013: 11.1). Caverin 4 Interim Reprt 1-9/2014

5 Key figures EUR millin 7 9/14 7 9/13 Change 1 9/14 1 9/13 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 % % 0.28 Wrking capital % % 46.0 Operating cash flw befre financial and tax items Interest-bearing net debt, end f perid % % % % 86.5 Persnnel, average fr the perid 17,329 18,016-4% 17,346 18,174-5% 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 5 Interim Reprt 1-9/2014

6 Grup revenue was EUR 567 millin in July September Grup revenue EUR millin /12: 2, /13: 2, /12: X,XXX In January September, revenue increased in Germany by 7% cmpared t the previus year, due t imprved rder backlg in In Sweden and Nrway, revenue decreased mainly due t increased selectiveness in prjects. Changes in freign exchange rates decreased Grup revenue by EUR 53.5 millin in January September. Revenue breakdwn by cuntry EUR millin (-12%) (-4%) (-11%) (7%) (-10%) (-9%) (6%) Sweden Finland Nrway Germany Austria Denmark Other cuntries 1 9/13 1 9/14 Revenue by business area 1 9/2014 Service and maintenance 54% (1 9/2013: 55%) Prjects 46% (45%) Caverin 6 Interim Reprt 1-9/2014

7 Service and maintenance revenue EUR 305 millin The service and maintenance market has been stable in all cuntries with reginal variatins within cuntries. General interest in life cycle slutins is increasing in all markets. Service and maintenance revenue 1 12/12: 1,542 (55%) /13: 1,409 (55%) Service and maintenance revenue, EUR millin % f ttal Grup revenue % 55% 54% 55% 56% 56% 54% 56% 55% 54% 54% Caverin 7 Interim Reprt 1-9/2014

8 Prject business revenue EUR 262 millin Several multi-millin prjects annunced in Q3. Psitive signs in tendering activity. Finland: sme pstpnements, but als relatively large deals. Sweden: The market has develped relatively well in Nrway: Gd perating envirnment. Germany: Demand remained favurable and uncertainty in the prject market eased. Prject business revenue /12: 1,261 (45%) /13: 1,134 (45%) Prject business revenue, EUR millin % f ttal Grup revenue 44% 45% 46% 45% 44% 44% 46% 44% 45% 46% 46% Caverin 8 Interim Reprt 1-9/2014

9 Prfitability imprved frm the previus quarter EBITDA, EUR millin EBITDA margin, % Turnarund f the Nrwegian prject peratins has prgressed well during Q3, accrding t plan. 1 12/12: 85.3 (3.0%) 1 12/13: 70.9 (2.8%) The effect f nn-recurring items impacting EBITDA was EUR 3.9 millin in Q % 3.6% 4.0% % 3.7% % 1.3% 1.5% 2.0% 1.6% % Caverin 9 Interim Reprt 1-9/2014

10 Psitive develpment in rder backlg cntinues Order backlg EUR millin Order backlg increased by 6% frm the end f September 2013 and by 2% frm the end f June ,470 1,429 1,340 1,199 1,315 1,274 1,296 1,241 1,335 1,350 1,379 Changes in freign exchange rates decreased the rder backlg fr 1 9/2014 by EUR 16.9 millin cmpared t 1 9/2013 and increased it by EUR 6.5 millin cmpared t 6/ /12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 Caverin 10 Interim Reprt 1-9/2014

11 Several large rders received in July September Henninger Twer, Frankfurt am Main, Germany As as a technical general cntractr, Caverin is respnsible fr delivering the ttal technical slutn fr the new residential building, husing mre than 200 apartments in 40 flrs. The building will utilise gethermal energy fr heating and cling, amng thers. Service areas: Design & Engineering Services, Prject Management, Prject Executin Disciplines: Heating & Sanitatin, Ventilatin, Electricity, Cling, Security & Safety, Autmatin Cntract value: EUR 33 millin Size: ~77,000 m² Lifespan: 12/2014 late 2016 Henninger Twer Arendal plice statin, Nrway A ttal technical slutin fr the new plice statin. The prperty will be built accrding t passive huse standards. Service areas: Design & Engineering Services, Prject Management, Prject Executin Disciplines: Heating & Sanitatin, Ventilatin & Air Cnditining, Electricity, Security & Safety, Autmatin Cntract value: EUR 3.2 millin Size: ~5,700 m² Lifespan: T be cmpleted in 7/2016 Caverin 11 Interim Reprt 1-9/2014

12 Several large rders received in July September Aquis Plaza shpping centre, Aachen, Germany Delivery f ventilatin, air cnditining and sanitatin systems, including advanced heat recvery systems, t the new shpping centre. Service areas: Prject Management, Prject Executin Disciplines: Ventilatin & Air Cnditining, Sanitatin Cntract value: EUR 5.5 millin Size: ~30,000 m² Lifespan: T be cmpleted in autumn 2015 Aquis Plaza Autmbile manufacturer, Germany Ventilatin and air cnditining systems fr the expansin f an autmbile factry. Service area: Prject Executin Disciplines: Ventilatin & Air Cnditining Cntract value: EUR 5.5 millin Size: ~68,000 m² Lifespan: T be cmpleted in 2/2015 Caverin 12 Interim Reprt 1-9/2014

13 Several large rders received in July September DZNE research premises, Bnn, Germany Installatin f ventilatin systems fr the new premises f German Center fr Neurdegenerative Diseases. Individualised slutins fr each space and a highperfrmance heat recvery systems.the cntract als includes technical maintenance fr five years. Service areas: Prject Executin, Technical Maintenance Disciplines: Ventilatin Cntract value: EUR 8.7 millin Size: ~15,000 m² Lifespan: 6/2014 early 2016 DZNE Valkea shpping centre, Oulu, Finland Electrical installatins fr the new shpping centre and the renvatin f the existing prperty. The prject als cvers parking garage, ffice premises and cvered pedestrian street. Service area: Prject Executin Disciplines: Electricity Cntract value: EUR 3.5 millin Lifespan: T be cmpleted in 2016 Picture: wulf architekten GmbH Caverin 13 Interim Reprt 1-9/2014

14 Several large rders received in July September MTU Aer Engines, Munich, Germany Service agreement fr techical maintenance and managed peratins cvering all technical systems at MTU s headquarters. Caverin will als identify and implement energy-saving measures fr the prperty. Service areas: Technical Maintenance, Managed Operatins Disciplines: Heating & Sanitatin, Ventilatin & Air Cnditining, Cling, Electricity, Autmatin Cntract value: Nt disclsed Size: ~285,000 m² Lifespan: 7/2014 nwards MTU Aer Engines MTU Weberzeile shpping centre, Ried, Austria A ttal technical slutin fr the new shpping centre including an advanced heat recvery system fr increased energy efficiency. Service area: Prject Executin Disciplines: Heating & Sanitatin, Ventilatin & Air Cnditining, Electricity, Security & Safety Cntract value: Several millin eurs Size: 22,000 m² Lifespan: T be cmpleted in summer 2015 Caverin 14 Interim Reprt 1-9/2014

15 17,263 emplyees at the end f September Emplyees by cuntry at the end f September 2014 Finland 28% Sweden 22% Nrway 17% Germany 14% Austria 4% Denmark 6% Other cuntries 9% In Q3, we cntinued t develp a lean rganisatin and a winning team: Talent management Career and rganisatinal develpment Heads f divisins f Sweden and Germany appinted t Grup Management Bard Several appintments in Grup functins and within the perating divisins Grup-wide develpment prjects t secure peratinal excellence n-ging: Cmmn peratinal mdel Cmmn prcesses and integrated slutins Clear imprvement in H-factr (wrk safety) Caverin 15 Interim Reprt 1-9/2014

16 Cash flw and wrking capital

17 Imprved cash flw Operating cash flw befre financial and tax items EUR millin Cash flw (rlling 12 mnths) cntinued t imprve Rlling 12 mnths Imprved cash flw supprted by mre efficient management f wrking capital Target t reduce seasnality Cntinuus develpment and investment in technlgies, prcesses and cmpetences /13 4 6/13 7 9/ /13 1 3/14 4 6/14 7 9/14 Capex investments in 7 9/2014 ttalled EUR 3.9 millin, mainly relating t IT and the develpment f cmmn business prcesses. Caverin 17 Interim Reprt 1-9/2014

18 Psitive prgressin twards reaching a negative wrking capital cntinues Wrking capital Wrking capital mre stable and belw last year s level Wrking capital, EUR millin Wrking capital t sales, % (LTM) Increased fcus n managing wrking capital Cultural change Imprved tls fr invicing Payment plans reviewed as a part f the tender apprval prcess Wrking capital decreased by 59% cmpared t 9/ % 3% 4% 3% 3% 4% 5% 2% 3% 2% 2% Increase by EUR 3.4 millin cmpared t 12/ /12 4 6/12 7 9/ /12 1 3/13 4 6/13 7 9/ /13 1 3/14 4 6/14 7 9/14. Caverin 18 Interim Reprt 1-9/2014

19 Financing

20 Balanced debt structure Debt maturity EUR millin Lan prtfli Banks 93% Insurance cmpanies 5% Others 2% Interest rate type (after hedges) Fixed interest 47% Flating interest 53% Lan prtfli ttal: EUR millin Average interest rate after hedges: 2.4% Caverin 20 Interim Reprt 1-9/2014

21 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 9/14 Grss debt t net debt EUR millin Liquidity reserve EUR 121 millin EUR millin Unused credit facilities Cash and cash equivalents Lng-term brrwings Shrt-term brrwings Cash and cash equivalents Net debt Caverin 21 Interim Reprt 1-9/2014

22 Market utlk and guidance

23 Market utlk fr Caverin s business in 2014 Service and maintenance Prjects 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 Prjects Austria New investments in building systems expected t increase slightly. Denmark Psitive signs can be seen. Overall changes in the perating envirnment due t grwing uncertainty ver the general marcecnmic develpment and munting geplitical tensins have led t sme expected cautiusness in prject start-ups and service demand during the rest f the year. Surce: Eurcnstruct, June 2014 Caverin 23 Interim Reprt 1-9/2014

24 Guidance published n July 14, 2014 repeated Revenue Caverin estimates that the Grup s revenue fr 2014 with cmparable exchange rates will remain at the previus year's level. EBITDA 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 24 Interim Reprt 1-9/2014

25 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 25 Interim Reprt 1-9/2014

26

27 Additinal slides

28 33,860 sharehlders n September 30, 2014 Largest sharehlders Majr sharehlders n June 28,2013 Shares, pcs Change after % f all June, shares pcs Change, % 1. Structr S.A. 17,840, , Antti Herlin and cmpanies cntrlled by him 13,080, ,050, Varma Mutual Pensin Insurance Cmpany 4,845, Fndita funds 4,135, , Ilmarinen Mutual Pensin Insurance Cmpany 3,904, Nrdea funds 3,819, , OP funds 3,806, , Aktia funds 2,088, , The State Pensin Fund 1,570, , El Pensin Cmpany 1,344, Ilkka Brtherus 1,304, Evli funds 923, Danske Invest funds 839, , Etera Mutual Pensin Insurance Cmpany 757, Odin funds 526, Caverin Oyj 507, , Säästöpankki funds 506, FIM funds 478, , Föreningen Knstsamfundet rf 423, Fundatin f Brita Maria Renlunds minne 412, largest, ttal 63,112, Owners by categry by shares wned Nminee registered and nn-finnish hlders 31% (June 30, 2014: 34%) Husehlds 22% (20%) General gvernment 11% (11%) Financial and insurance crpratins 14% (14%) Nn-prfit institutins 6% (6%) Nn-financial crpratins and husing crpratins 17% (15%) A ttal f 33,860 sharehlders (June 30,2014: 33,134) All shares 125,596, Caverin 28 Interim Reprt 1-9/2014

29 Werner Kühn appinted as Grup Executive Vice President and CEO f Divisin Germany Brn 1959, German citizen Mved t Caverin frm Tyc Fire & Security, Germany, where he wrked as General Manager and Managing Directr since Started n Octber 1, 2014 Reprting t the President and CEO Fredrik Strand Over 15 years f experience frm managing directr and executive psitins in Germany and internatinally. Has previusly held psitins such as Vice President EMEA Avcent at Emersn Netwrk Pwer and Directr, Sales & Marketing Eurpe at Prficiency Inc. Pst Graduate Degree in Business Infrmatics Karl-Walter Schuster, the previus head f Divisin Germany cntinues in Caverin s emply as head f Prject Excellence business area. Caverin 29 Interim Reprt 1-9/2014

30 Megatrends in the market supprt ur lng-term strategy Increasing technlgy Imprving energy efficiency Grwing digitalisatin Fragmented market Technlgy in buildings currently accunt fr 40 60% f building csts Integrated technlgies require multi-discipline expertise Tightening legislatin relating t energy efficiency In 2020, all new buildings are required t be n a passive huse level (almst self-sufficient energy-wise) All technlgies in buildings have an IP address. Demand fr remte mnitring is increasing. A lt f small cmpanies in the market Extensive services a cmpetitive advantage especially in large prjects Maintenance is increasingly based n preventive measures as well as n actual needs and cnditins. Increasing demand fr energy-efficient slutins als fr existing buildings 10,000 buildings currently under Caverin s remte cntrl. Grwth ptential especially in Germanspeaking areas Caverin