Company Presentation June 2, Antti Heinola, CFO Milena Hæggström, Head of Investor Relations

Transcription

1 Cmpany Presentatin June 2, 2015 Antti Heinla, CFO Milena Hæggström, Head f Investr Relatins

2 Cntents Business and strategy Market verview Financials Appendix

3 Business and strategy

4 Caverin in brief Caverin designs, builds, perates and maintains user-friendly and energy-efficient slutins fr buildings, infrastructure and industrial plants. Revenue by cuntry in 2014 Sweden 25% Finland 22% Nrway 19% Germany 21% Austria 6% Denmark 5% Other cuntries 3% Key figures in 2014 Revenue 2,407 EUR millin Order backlg 1,324 EUR millin Persnnel by cuntry in 2014 EBIT 61 EUR millin 2.2% f revenue Sweden 23% Finland 28% Nrway 16% Germany 14% Austria 4% Denmark 6% Other cuntries 9% Revenue based n the Grup cmpany lcatin EBITDA 67.5 EUR millin (2.8% f revenue) Operating cash flw befre financial and tax items EUR millin Caverin 4 Cmpany Presentatin June 2015

5 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

6 Life cycle view is included in everything we d We understand the cmplexity f building technlgies and industrial prcesses. We have technical and management skills in all disciplines thrughut the life cycle. We manage the life cycle - frm individual technlgies t advanced ttal slutins - and decrease the csts related t the prperty. Technical Maintenance Prject Executin Prject Management Managed Operatins Design & Engineering Managed Life Cycle Advisry Services Client benefits Energy Maintenance Investment The life cycle mdel decreases the csts related t the prperty and related prcesses Functinality and safety Sustainability Energy and cst efficiency Prcess efficiency Caverin 6 Cmpany Presentatin June 2015

7 Visin We are a leading Eurpean prvider f advanced and sustainable life cycle slutins fr buildings and industries. Missin We design, build, perate and maintain user-friendly and energy-efficient slutins fr buildings, infrastructure and industrial plants. Financial Targets 2016 Prfitability (EBITDA) ver 6% f revenue Average annual revenue grwth > 10% Negative wrking capital Strategic fcus areas Increasing prfits Strng cmpany image Strng grwth Excellent leadership Innvative and advanced slutins Operatinal excellence Values Step ahead + Cperatin + Respnsibility + High perfrmance Caverin

8 Clear implementatin plan t reach 2016 targets Strng cmpany image Market Offer Operatinal excellence Enables prfitable grwth Advisry Services Design & Engineering Services Prject Management Prject Executin Technical Maintenance Managed Operatins Managed Life Cycle Excellent Leadership Caverin 8 Cmpany Presentatin June 2015

9 Delivering n grwth and prfitability 04 Reach 03 Create Operatinal excellence Mst efficient service cmpany 01 Fix Increasing prfits Demerger and restructuring 02 Build Operatinal excellence Develping internal prcesses and harmnizatin Excellent leadership Lean rganizatin and winning team Innvative and advanced slutins Develping business mix Strng grwth Back n track Innvative and advanced slutins Strng wn cncepts and capabilities in bth prjects and services Strng cmpany image Caverin 9 Cmpany Presentatin June 2015

10 Our integrated ffering fr life cycle slutins Advisry Services Design & Engineering Services Prject Management Prject Executin Technical Maintenance Managed Operatins Managed Life Cycle Public Industry Real estate wners and develpers Value prpsitin fr each client segment Cmmercial view fr each service area Real estate users General cntractrs Disciplines Caverin 10 Cmpany Presentatin June 2015

11 Delivering n grwth and prfitability imprvement 1. Megatrends in the market supprt ur lngterm strategy 2. Our cmpetitive edge is built n life cycle slutins 3. Clear implementatin plan t reach 2016 targets Caverin 11 Cmpany Presentatin June 2015

12 Market verview

13 We have strng grwth ptential in the fragmented market Main cmpetitrs by cuntry Finland Are, Ryal Imtech, Cnsti Sweden Bravida, Ryal Imtech, Midrc Electr AB Nrway Gunnar Karlsen, Bravida, Oras Denmark Kemp & Lauritzen, Wictec Kirkebjerk, Bravida Germany Bilfinger Facility Services, Ryal Imtech, Strabag PFS Austria Ortner, EQOS Energie, Cfely Industry Maintpartner, BIS Prductin Partner (Bilfinger Industrial Services), Empwer Strng market psitin in all key perating cuntries Revenue by business area Service and maintenance 54% Prjects 46% Caverin 13 Cmpany Presentatin June 2015

14 Market utlk fr Caverin s business in 2015 Technical installatin and maintenance Expected t be stable. Requirements fr increased energy efficiency and better indr cnditins and tightening envirnmental legislatin supprt psitive market develpment. Large prjects Large tenders fr buildings and industry expected t increase during the year. Lw interest rates and availability f financing are expected t supprt investments. Demand fr design & build f ttal technical slutins is expected t develp favurably. Managed services Need fr new services and the demand fr life cycle slutins are expected t increase. Custmers fcus n their cre peratins pens pprtunities in utsurced peratin and maintenance mainly fr public authrities, industries and utilities. Overall changes in the perating envirnment due t grwing uncertainty ver the general macrecnmic develpment and munting geplitical tensins may lead t sme expected cautiusness in prject start-ups and service demand. Caverin 14 Cmpany Presentatin June 2015

15 Financials

16 Targeting average annual grwth in revenue f > 10% by the end f 2016 Grup revenue EUR millin 1 12/13: 2, /12: X,XXX /14: 2, Revenue was EUR millin in Q1, a decrease f 5 percent cmpared t the previus year. Changes in freign exchange rates decreased Grup revenue by EUR 16.1 millin in January March mainly caused by changes in SEK and NOK. 1 3/13 4 6/13 7 9/ /13 1 3/14 4 6/14 7 9/ /14 1 3/15 Revenue decreased mainly in Finland and Nrway. Revenue breakdwn by cuntry EUR millin (0%) (-8%) (0%) (-18%) (11%) (9%) (-9%) Sweden Finland Germany Nrway Austria Denmark Other cuntries 1 3/14 1 3/15 Revenue by business area 1 3/2015 Service and maintenance 55% (1 3/2014: 55%) Prjects 45% (45%) Caverin 16 Cmpany Presentatin June 2015

17 Service and maintenance: activity level remained stable The technical installatin and maintenance market has been stable verall. The general interest in managed services and life cycle slutins cntinued t increase. Service and maintenance revenue 1 12/13: 1,409 (55%) Service and maintenance revenue, EUR millin % f ttal Grup revenue 1 12/14: 1,297 (54%) % 56% 54% 56% 55% 54% 54% 53% 55% Caverin 17 Cmpany Presentatin June 2015

18 Several multi-millin prjects annunced in Q1 Finland: Prject market is still slw; hwever Caverin has been active and been able t secure sme large new deals. Sweden: Market has been stable. Nrway: Sme pstpnements, mainly due t lwer activity related t the il industry. Germany: Demand remained favurable. Prject business revenue /13: 1,134 (45%) /14: 1,110 (46%) Prject business revenue, EUR millin % f ttal Grup revenue % 44% 46% 44% 45% 46% 46% 47% 45% Caverin 18 Cmpany Presentatin June 2015

19 Stable rder backlg develpment in Q1 Order backlg EUR millin Q1 Q2 Q3 Q4 +4% 1,335 1,392 1,324 Order backlg grew by 5% frm the end f last year and by 4% cmpared t the crrespnding perid previus year. Changes in freign exchange rates increased the rder backlg by EUR 11 millin cmpared t the end f December /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 Caverin 19 Cmpany Presentatin June 2015

20 Prfitability n track t reach financial target EBITDA, EUR millin EBITDA margin, % 1 12/13: 70.9 (2.8%) 1 12/14: 67.5 (2.8%) EBITDA fr Q1 amunted t EUR 14.2 millin, up by 48 % frm the previus year. In ne f the finalised lwperfrming prjects in Nrway the prvisin made during Q2/2014 was insufficient, resulting in a negative effect f EUR 2.9 millin. One technical incident in Finland resulting in a settlement with an industrial client, amunting t EUR 0.7 millin Caverin 20 Cmpany Presentatin June 2015

21 Guidance fr 2015 reiterated Revenue Caverin estimates that the Grup s revenue will remain at the previus year's level. EBITDA Caverin estimates that the Grup s EBITDA margin fr 2015 will grw significantly. Caverin 21 Cmpany Presentatin June 2015

22 Firm grip n managing wrking capital Wrking capital, Wrking capital Mre than EUR 130 millin f EUR millin wrking capital released in the past 18 mnths thrugh: 100 4% 120 5% 64 Wrking capital t sales, % (LTM) Advances received stable at a level f EUR millin (7-9/2013: EUR millin) Imprvement frm mre efficient invicing prcess 46 2% 3% % 2% Decrease by EUR 78 millin cmpared t 3/ % -1% Efficient wrking capital management enables us t develp ur strategic business mix. 4 6/13 7 9/ /13 1 3/14 4 6/14 7 9/ /14 1 3/15 Caverin 22 Cmpany Presentatin June 2015.

23 Rlling 12-mnth cash flw up t EUR 134 millin Operating cash flw befre financial and tax items EUR millin Rlling 12 mnths Strng rlling 12-mnth cash flw supprted by efficient management f wrking capital /13 4 6/13 7 9/ /13 1 3/14 4 6/14 7 9/ /14 1 3/15 Caverin 23 Cmpany Presentatin June 2015

24 Lw level f capital expenditure Capital expenditure (EUR millin)* % f sales Develpment and investment Cntinuus develpment and investment in technlgies, prcesses and cmpetences 1.09% % Capex investments Mainly relating t IT and the develpment f cmmn business prcesses 2014: EUR 23.4 millin Q1/2015: EUR 5.7 millin % 0.21% 0.24% *) Capital expenditures cnsist f investments in tangible (prperty, plant and equipment) and intangible assets, excluding acquisitins. Caverin 24 Cmpany Presentatin June 2015

25 Debt structure Debt maturity EUR millin Lan prtfli Banks 92% Insurance cmpanies 6% Others 2% Interest rate type (after hedges) Fixed interest 8% Flating interest 92% Lan prtfli ttal: EUR millin Average interest rate after hedges: 1.72% Caverin 25 Cmpany Presentatin June 2015

26 Strng cash psitin enabled vluntary repayment f grss debt Develpment f net debt EUR millin Net debt remains at Q4/2014 level Strng cash psitin enabled vluntary repayment f grss debt by EUR 20 millin. 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 Grss Grss debt debt t t net net debt debt EUR EUR millin millin Liquidity reserve EUR 158 millin Unused credit facilities 80 Lng-term brrwings Shrt-term brrwings Cash and cash equivalents 50 Net debt 79 Cash and cash equivalents Caverin 26 Cmpany Presentatin June 2015

27 Dividend plicy intact Dividend pay-ut at least 50 per cent f the net prfit fr the perid. A dividend f EUR 0.22 per share was paid n April 2, Caverin 27 Cmpany Presentatin June 2015

28 Appendix

29 Key figures EUR millin 1 3/15 1 3/14 Change 1 12/14 Order backlg, end f perid 1, , % 1,323.6 Revenue % 2,406.6 EBITDA % 67.5 EBITDA margin, % Earnings per share, basic, EUR % 0.22 Wrking capital Operating cash flw befre financial and tax items Interest-bearing net debt, end f perid % 50.2 Persnnel, average fr the perid 17,004 17,375-2% 17,300 Caverin 29 Cmpany Presentatin June 2015

30 Examples f rders received in January March Päivänkehrä schl, Esp, Finland Caverin implements the life cycle prject f schl mdernisatin and extensin in cperatin with YIT. After the prject delivery, Caverin is respnsible fr prviding technical maintenance and managed peratins, which als include the management f ther than technical maintenance services, during the peratinal phase f 20 years. Service areas: Managed Life Cycle (Design & Engineering, Prject Executin, Prject Management, Managed Operatins) Technical disciplines: All building systems f the prperty Cntract value: ~EUR 14 millin Lifespan: prject phase until 2017, peratin until 2037 Size: 7,400 m² Rygge DRV Middle Schl Rygge Middle Schl, Østfld, Nrway Caverin prvides a ttal technical slutin fr a new schl building t be built accrding t passive huse standards. The prject has elements f the PPP mdel and it is realised in cperatin with Rygge Municipality, the general cntractr Kruse Smith AS, and the architect Asplan Viak. Service areas: Prject Executin, Prject Management Technical disciplines: All building systems f the prperty Cntract value: EUR 8.8 millin Lifespan: 3/ /2016 Size: 11,000 m² Caverin 30 Cmpany Presentatin June 2015

31 Examples f rders received in January March Vlkswagen Cmmercial Vehicles, Wrzésnia, Pland Caverin designs and installs high capacity ventilatin and air cnditining systems fr the vehicle assembly hall and ffice spaces at the new Vlkswagen plant. T fulfill the client s requirements fr energy efficiency, all facilities feature heat recvery systems and ventilatin equipment that meet the IE3 Premium efficiency standards. Service areas: Design & Engineering, Prject Executin Technical disciplines: Ventilatin and air cnditining Cntract value: EUR 13 millin Lifespan: 3/2015 Q3/2016 Size: 78,000 m 2 Vlkswagen DRV Sør-Trøndelag Cllege ASFINAG, Austria Caverin equips the enclsed sectin f the mtrway A10 with advanced tunnel technlgy: slutins fr pwer supply, lighting, traffic and envirnmental data capturing, fire prtectin, vide surveillance and alarm systems, amng thers. Service areas: Design & Engineering, Prject Management, Prject Executin Technical disciplines: Electricity, Infrmatin and cmmunicatin, Security and safety, Autmatin, Ventilatin and air cnditining, Cling Cntract value: EUR 6 millin Lifespan: 1/2015 2/2017 Size: 1.5 km-lng tunnel Caverin 31 Cmpany Presentatin June 2015

32 Examples f rders received in January March Finnair, Finland Caverin cntinues technical maintenance and managed peratins f Finnair s prperties in the Helsinki-Vantaa airprt area. The agreement cntinues the cperatin that cmmenced in 2007, and EUR 2.5 millin f energy cst savings have been achieved during the past five years. Service areas: Technical Maintenance, Managed Operatins Technical disciplines: Heating and sanitatin, Ventilatin and air cnditining, Cling, Electricity, Security and safety, Autmatin, Infrmatin and cmmunicatin Cntract value: nt disclsed Lifespan: , after which valid until further ntice. Size: ver 30 sites, 170,000 m 2 Finnair Schlumberger, Surgut district and Astrakhan, Russia Caverin prvides maintenance f all technical systems in the ilfield services cmpany s prductin plants and ther facilities. The cntract emplys clse t 50 Caverin emplyees. Service areas: Technical Maintenance Technical disciplines: Heating and sanitatin, Ventilatin and air cnditining, Electricity, Infrmatin and cmmunicatin services, Security and safety Cntract value: nt disclsed Lifespan: 2/2015 2/2018 Size: m 2 Caverin 32 Cmpany Presentatin June 2015

33 Acquisitins have cntributed t revenue grwth thrugh the cycle Grup revenue EUR Revenue, millin EUR millin 1,680 1,797 1,892 2,140 2,396 2,125 2,353 2,876 2,803 2,544 2, , Calr AB ABB Building Systems MCE AG caverin GmbH Acquisitin perid Integratin and develpment Acquisitin perid Integratin and develpment figures based n fficial segment reprting, i.e. sum f building systems and industrial services related revenue figures f YIT, including als internal sales figures are external revenue figures based n Caverin s carve-ut segment reprting figures: 1-6/2013 carve-ut /2013 actual. Caverin 33 Cmpany Presentatin June 2015

34 M&A as a grwth driver 50% f revenue grwth ver cycle frm acquisitins M&A criteria Gd strategic fit Gegraphical cverage Business prtfli Custmer sectrs Cmplementary skills & resurces Business culture Value creatin ptential Prfitability turn-arund Strng lcal market psitin Valuatin criteria Internal valuatin always prepared Key multiples analysed: EV/Sales EV/EBITDA EV/EBIT P/E Payback time Multiple levels vary depending n the target as well as market situatin Caverin 34 Cmpany Presentatin June 2015

35 17,005 emplyees at the end f March During the perid we cntinued t develp a winning team: Talent management Organisatinal develpment Leadership develpment Internatinal team strengthened with key prfessinals and lcal trainees. Cntinuus imprvement fr ccupatinal health Safety f emplyees as a key target Emplyees by cuntry at the end f March 2015 Finland 27% Sweden 23% Nrway 16% Germany 14% Austria 4% Denmark 6% Other cuntries 10% Caverin 35 Cmpany Presentatin June 2015

36 30,826 sharehlders n May 29, 2015 Largest sharehlders Shares, pcs Majr sharehlders n June 28,2013 % f share Capital Change after April, pcs Change after April, % 1. Structr S.A. 17,840, Herlin Antti and the cmpanies cntrlled by him 13,370, , Ilmarinen Mutual Pensin Insurance Cmpany 4,289, , Fndita funds 3,542, Varma Mutual Pensin Insurance Cmpany 2,864, OP funds 2,669, , Nrdea funds 2,604, , Aktia funds 2,155, , The State Pensin Fund 1,850, Danske Invest funds 1,699, , El Pensin Cmpany 1,344, SEB Investment Funds 1,305, , Evli funds 1,243, Brtherus Ilkka 1,048, Etera Mutual Pensin Insurance Cmpany 757, Säästöpankki funds 731, Odin funds 526, Caverin Oyj 510, Föreningen Knstsamfundet rf 423, largest, ttal 61,051, All shares 125,596, Owners by categry by shares wned Nminee registered and nn-finnish hlders 35.6% (Mar. 31, 2015: 34.7%) Husehlds 19.1% (19.5%) General gvernment 9.9% (9.3%) Financial and insurance crpratins 13.8% (14.3%) Nn-prfit institutins 5.4% (5.8%) Nn-financial crpratins and husing crpratins 16.2% (16.3%) 30,826 wners Caverin 36

37 Bard f Directrs Elected by the Annual General Meeting n March 16, 2015 Ari Lehtranta Chairman Brn 1963, M.Sc. (Eng.) President and Chief Executive Officer f Nkian Tyres plc. Finnish citizen. Michael Rsenlew Vice Chairman Brn 1959, M.Sc. (Ecn.) Managing Directr f Mikars AB. Finnish citizen. Markus Ehrnrth Brn 1985, M.Sc. (Tech.), B.Sc. Plitical Science (Ecn.) C-Funder f Knmi Oy. Finnish and Swedish citizen Anna Hyvönen Brn 1968, Lic.Tech. Executive Vice President, Nrth Eurpe Central f Ramirent Plc. Finnish citizen. Eva Lindqvist Brn 1958, M.Sc. (Eng.), MBA. Swedish citizen. Ari Puhelinen Brn 1951, General Staff Officer. General (ret.) Finnish citizen Caverin 37 Cmpany Presentatin June 2015

38 Grup Management Bard as f May 1, 2015 Fredrik Strand President and CEO Antti Heinla Finance and Gvernance Sakari Tikkanen Strategy & Develpment Merja Eskla Human Resurces & Peple Karl-Walter Schuster Prject excellence, Sales Develpment Matti Malmberg Service efficiency, Client Relatin Management Thmas Lundin Sweden Werner Kühn Germany Manfred Simmet Austria Knut Gaaserud Nrway Jarn Hacklin Finland Peter Rafn Denmark Juhani Pitkäkski Industrial Slutins Niclas Sacklén Eastern Eurpe Caverin 38

39 Caverin Organisatin as f May 1, 2015 Caverin Grup President and CEO Fredrik Strand* Grup Finance & Gvernance Antti Heinla* Sweden Thmas Lundin* Nrway Knut Gaaserud* Germany Werner Kühn* Finland Jarn Hacklin* Austria Manfred Simmet* Denmark Peter Rafn* Eastern Eurpe Niclas Sacklén* Industrial Slutins Juhani Pitkäkski* Grup HR & Peple Merja Eskla* Grup Strategy & Develpment Sakari Tikkanen* Sales Develpment Karl-Walter Schuster* Client Relatins Management Matti Malmberg* Prject Excellence Karl-Walter Schuster* Service Efficiency Matti Malmberg* * = member f the Grup Management Bard Caverin 39