Interim Report January September 2015 · 2018-05-08 · 13 Interim Report 1-9/2015 ÖAMTC...
Transcript of Interim Report January September 2015 · 2018-05-08 · 13 Interim Report 1-9/2015 ÖAMTC...
Interim Report January–September 2015
Fredrik Strand, President and CEO
Antti Heinola, CFO October 23, 2015
Contents
o Group development
o Cash flow and working capital
o Financing
o Market outlook and guidance for 2015
Caverion
Summary of Q3/2015
3
EBITDA
° EBITDA for Q3 was in line with the previous year and amounted to EUR 21.3 million.
° Investments in common processes also reflected in operational expenses
° Burdened by a couple of projects in handover stage and legal expenses in Germany
Revenue
° Revenue for Q3 was in line with the previous year and amounted to EUR 574 million.
Order backlog
° The order backlog continued to increase reflecting the growth targets in Large Projects and Managed Services.
° Order backlog grew by 7% compared to the previous year and by 6% from the previous quarter and was EUR 1,477 million.
Working capital and operating cash flow
° Working capital amounted to EUR 36.1 million (Q3/2014: 49.4).
° Operating cash flow before financial and tax items was EUR -8.9 million (Q3/2014: 20.5).
Interim Report 1-9/2015
Caverion
Key figures
EUR million 7−9/15 7−9/14 Change 1−9/15 1−9/14 Change 1−12/14
Order backlog 1,477.2 1,379.5 7% 1,477.2 1,379.5 7% 1,323.6
Revenue 573.7 566.7 1% 1,775.3 1,746.4 2% 2,406.6
EBITDA 21.3 21.5 -1% 57.5 33.2 73% 67.5
EBITDA margin, % 3.7 3.8 3.2 1.9 2.8
Earnings per share, basic, EUR 0.08 0.08 0% 0.21 0.06 240% 0.22
Working capital 36.1 49.4 -27% 36.1 49.4 -27% -19.3
Operating cash flow before
financial and tax items -8.9 20.5 2.7 13.4 -80% 113.5
Interest-bearing net debt 101.9 131.6 -23% 101.9 131.6 -23% 50.2
Personnel, average for the period 17,369 17,329 17,286 17,346 17,300
4 Interim Report 1-9/2015
Caverion
Strong order backlog development in Q3
5
° The order backlog continued to increase reflecting the growth targets in Large Projects and Managed Services.
° Order backlog grew by 7% compared to the previous year and by 6% from the previous quarter.
° At comparable exchange rates the order backlog increased by 8 percent from the end of June 2015 and by 11 percent from the end of September 2014.
1,392 1,393 1,477
Order backlog EUR million
Interim Report 1-9/2015
Q1 Q2 Q3 Q4
+4% +3% +7%
Comparative figures are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013).,
Caverion
Group revenue up from the previous year
6
428 383 359 339
98 90 50
436 396 377
299
108 103 56
Sweden Finland Germany Norway Austria Denmark Othercountries
1−9/14 1−9/15
Service and maintenance 53% (1−9/2014: 54%)
Projects47% (46%)
Revenue breakdown by country EUR million
° Revenue was EUR 1,775 million in January−September, an increase of 4 percent at previous year’s exchange rates.
° In Norway, technical installation and maintenance impacted by slowdown in the oil industry.
° Revenue -6% with comparable exchange rates during 1-9/2015
° Exit of one large services contract now fully visible.
Revenue by business area 1−9/2015
(2%) (4%) (5%) (-12%)
(11%) (14%)
Interim Report 1-9/2015
(12%)
591 588 567
660
563
638
574
1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15
Group revenue EUR million 1−12/14: 2,407
Caverion
Service and maintenance: activity level remained stable
7 Interim Report 1-9/2015
o The technical installation and
maintenance market was
stable overall.
o In Norway, technical
installation and maintenance
was impacted by slowdown in
the oil industry.
o General interest in managed
services and life cycle
solutions increasing.
323 319
305
350
311 340
290
55% 54% 54% 53% 55% 53% 51%
1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15
Service andmaintenancerevenue, EUR million
% of total Grouprevenue
Service and maintenance revenue
1−12/14:
1,297 (54%)
Caverion
Several multi-million projects announced in Q3
8
° The large project market is improving gradually.
° Demand remained favourable in a stable overall market environment in Germany, Austria and Sweden.
° Denmark, Finland, Eastern Europe and Industrial Solutions: Good development with new clients and contracts in the first nine months.
° In Norway there have been postponements in new investments.
Interim Report 1-9/2015
268 270 262
310
253
298 284
45% 46% 46% 47% 45% 47% 49%
1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15
Project businessrevenue,EUR million
% of total Grouprevenue
Project business revenue
1−12/14:
1,110 (46%)
Caverion
Profitability on track to reach financial target
9
9.6 2.1
21.5
34.3
14.2
22.0 21.3
1.6 0.4
3.8
5.2
2.5
3.4 3.7
1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15
EBITDA, EUR million EBITDA margin, %
o EBITDA for Q3 was in line with the previous year and amounted to EUR 21.3 million.
o Investments in common processes also reflected in operational expenses
o In Norway, the general economy has been impacted by the slowdown in the oil industry.
o Burdened by a couple of projects in handover stage and legal expenses in Germany.
o The improved performance in January – September compared to last year is largely explained by the write downs done in the second quarter of 2014.
o The EBITDA performance during the rest of the year is expected to be in line with last year.
Interim Report 1-9/2015
1−12/14: 67.5 (2.8%)
71.1 60.3 58.4
67.5 72.1
92.0 91.8
1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15
EBITDA, EUR million (rolling 12m)
Caverion
Examples of orders received in July-September
Congress Center Hamburg, Germany Caverion provides total technical solutions worth over 43 million for the renovation of Congress Center Hamburg. This is one of the largest projects after the establishment of Caverion. Top priority in the project is to guarantee good indoor climate in all conditions. In order to achieve this, Caverion will install 10,000 data points to log air conditions and an intelligent air conditioning system. After renovation and comprehensive modernisation, Congress Center Hamburg will be one of Europe’s largest convention centres. ° Contract value: over EUR 43 million ° Service areas: Design & Engineering, Project Execution ° Technical disciplines: Heating and sanitation, Ventilation and air-conditioning, Cooling, Electricity,
Automation solutions and Fire extinguishing systems ° Lifespan: Center is scheduled to reopen in 2019. ° Client: CCH Immobilien GmbH & Co. KG. ° Size: 36,000 m2
10 Interim Report 1-9/2015
agn leusmann GmbH/ Tim Hupe Architekten
Caverion
Examples of orders received in July-September
Technopolis Ozas office campus, Vilnius, Lithuania
Caverion provides building solutions for two newly constructed buildings complementing the Technopolis Ozas campus.
° Contract value: ~EUR 7 million
° Service areas: Design & Engineering, Project Execution, Project Management
° Technical disciplines: Heating and sanitation, Cooling, Ventilation and air conditioning, Security and safety and Automation
° Lifespan: completed in autumn 2016
° Client: Mitnija
° Size: 25,000 m2
11
Railway Farriseidet-Porsgrunn, Southern Norway
Caverion provides electricity solutions for a new, about 23 kilometers long, railway route. The line includes seven tunnels. In tracks and tunnels the scope of electricity works are mainly heating and exhaust fans, lighting and sub-distributions and emergency lightning.
° Contract value: over EUR 35 million
° Service areas: Project Execution, Project Management
° Technical disciplines: Electricity
° Lifespan: final design in autumn 2015, installation phase Jan 2016 – June 2018
Interim Report 1-9/2015
Jarle Foss/Jernbaneverket
Trine Bratlie Evensen / Jernbaneverket
Caverion
Examples of orders received in July-September
Dorotheen Quartier, Stuttgart, Germany
Caverion provides building solutions for a new building complex. The multifunctional building will have nine floors and it will house shops, offices and apartments.
° Contract value: ~ EUR 14.2 million
° Service areas: Project Execution
° Technical disciplines: Heating and sanitation, Ventilation and air conditioning, Cooling, Automation, Security and safety
° Lifespan: Oct 2015 – Dec 2016
° Client: EKZ Grundstücksverwaltung GmbH
° Size: 38, 000 m²
12
Multi-fuel power plant, Naantali, Finland
Caverion delivers high-pressure piping to a new multi-fuel power plant. The delivery includes piping design, materials, prefabrication and industrial installation. Quality requirements for the delivery are strict, particularly for the pipe materials and welding. Total weight of the delivery is approximately 400 tonnes.
° Contract value: ~ EUR 8 million
° Lifespan: Planning phase starts in autumn 2015 and installations in spring 2016. Plant is operational in autumn 2017.
° Client: Turun Seudun Energiantuotanto Oy
Behnisch Architekten
Interim Report 1-9/2015
Caverion
Examples of orders received in July-September
University Hospital Frankfurt, Germany
Caverion provides ventilation and air conditioning solutions to three new buildings of the University Hospital Frankfurt. Some of the rooms, e.g. laboratories, have very strict air purity requirements.
° Contract value: EUR 10.6 million
° Service areas: Project Execution
° Technical disciplines: Ventilation & air conditioning
° Lifespan: Scheduled to be completed in 7/2017
° Client: Hessisches Baumanagement
° Size: 50,000 m2
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ÖAMTC Headquarters, Vienna, Austria Caverion provides building solutions to the new headquarters of ÖAMTC in Vienna. The office complex will utilise sustainable and integrated building technologies, such as geothermal heating. ° Contract value: EUR 7.0 million
° Service areas: Design & Engineering, Project Management and Project Execution.
° Technical disciplines: Heating and sanitation, Cooling, Ventilation & air conditioning, Security & safety and Automation
° Lifespan: Scheduled to be completed in autumn 2016.
° Client: ÖAMTC ° Size: 27,000 m²
Wörner Traxler Richter
Planungsgesellschaft mbH
Caverion
17,450 employees at the end of September
14
Employees by country at the end of September 2015
Interim Report 1-9/2015
Finland 27%
Sweden 22%
Norway 17%
Germany 14%
Denmark 6%
Austria 4%
Other countries 11%
Group-wide effort to develop occupational health and safety with strong mindset: ° Safety and well-being of all
employees as a key target every day
During the period we continued to develop one winning Caverion team with strong performance culture: ° Talent, succession and
organisational management
° Leadership development
° Strengthening of pipelines of key professionals and trainees.
Cash flow and working capital
Caverion
At the end Q3 our working capital increased due to seasonal fluctuation.
Towards the end of the year we expect to reach our targeted level of negative working capital.
Active management of working capital Financial target: negative working capital
16
100
120
46
64
49 49
-19 -13
8
36
4% 5%
2%
3%
2% 2%
-1% -1%
0%
1%
Working capital,EUR million
Working capital to sales,% (LTM)
Working capital
Interim Report 1-9/2015
6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15
Around EUR 10 million of working capital released since 9/2014:
° Advances received stable at a level of EUR 186.3 million (9/2014: EUR 181.2 million)
° Continued focus on invoicing process
Comparative figures are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013).,
Caverion
Rolling 12-month cash flow of EUR 103 million
17
101.3
-11.1
4.1
20.5
100.0
9.8 1.8
-8.9
108.5
90.1
105.4 114.8 113.5
134.4 132.2
102.8
10−12/13 1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15
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 (including acquisitions) of EUR 17.9 million in January-September, mainly relating to IT and the development of common business processes.
Interim Report 1-9/2015
Operating cash flow before financial and tax items EUR million
Comparative figures are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013).,
Financing
Caverion
Balanced debt structure
19
o Loan portfolio total: EUR 142.5 million
o Average interest rate after hedges: 1.3%
Loan portfolio
Interest rate type (after hedges)
Debt maturity EUR million
Interim Report 1-9/2015
Fixedinterest77%
Floatinginterest23%
29
39
22 22 20
10
2015 2016 2017 2018 2019 2020
Banks 83%
Commercialpapers 10%
Insurancecompanies 5%
Others 2%
Caverion
Strong balance sheet and liquidity
20
Gross debt to net debt EUR million
Liquidity reserve EUR 160 million EUR million
Net debt, EUR million
Interim Report 1-9/2015
86
56 41
102
Long-term borrowings Short-termborrowings
Cash and cashequivalents
Net debt 41
119
Unused creditfacilities
Cash and cashequivalents
o Net debt remains in Q4 2014 level
o Strong cash position enabled voluntary repayment of gross debt by EUR 20 million
194 190
86 104
143 132
50 50
85 102
3,3x 3,4x
1,2x 1,5x
2,4x 2,3x
0,7x 0,7x 0,9x
1,1x
Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15
Net debt/EBITDA, Rolling 12 Months
Comparative figures are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013).,
Market outlook and guidance
Caverion
Market outlook for Caverion’s business in 2015
22 Interim Report 1-9/2015
Large projects
o Positive trend in large tenders expected to continue.
o In certain industries (nuclear, mining, oil) less investments resulting in project postponements or cancellations.
o Demand for design & build of total technical solutions expected to develop favourably.
Technical installation and maintenance
o Expected to remain stable. o Requirements for increased
energy efficiency, better indoor conditions and tightening environmental legislation support positive market development.
o In Norway general economy impacted by slowdown in the oil industry.
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.
Interim Report 1-9/2015
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.
Interim Report 1-9/2015
Additional slides
Caverion
30,416 shareholders on September 30, 2015
27
Major shareholders on June 28,2013
Largest shareholders
Shares,
pcs
% of share
Capital
Change after
June 2015,
pcs
Change after
June 2015,
%
1. Structor S.A. 17,840,000 14.20 0 0.00%
2. Herlin Antti and companies controlled by him 13,410,180 10.68 40,000 0.30%
3. Ilmarinen Mutual Pension Insurance Company 4,030,000 3.21 -165,551 -3.95%
4. Fondita funds 3,542,000 2.82 0 0.00%
5. Nordea funds 3,126,444 2.49 305,121 10.81%
6. Varma Mutual Pension Insurance Company 2,864,393 2.28 0 0.00%
7. OP funds 2,118,055 1.69 -192,463 -8.33%
8. Aktia funds 2,044,854 1.63 -110,658 -5.13%
9. The State Pension Fund 1,850,000 1.47 0 0.00%
10. Danske Invest funds 1,750,899 1.39 2,331 0.13%
11. SEB Investment Funds 1,618,440 1.29 313,835 24.06%
12. Elo Pension Company 1,344,468 1.07 0 0.00%
13. Evli funds 1,121,994 0.89 -40,024 -3.44%
14. Brotherus Ilkka 1,048,265 0.83 0 0.00%
15. Etera Mutual Pension Insurance Company 757,446 0.60 0 0.00%
16. Säästöpankki funds 721,052 0.57 -10,000 -1.37%
17. Odin funds 526,311 0.42 0 0.00%
18. Caverion Oyj 511,461 0.41 474 0.09%
19. Alfred Berg Finland 498,755 0.40 241,441 93.83%
20. Föreningen Konstsamfundet rf 423,002 0.34 0 0.00%
20 largest, total 61,148,019 48.69
All shares 125,596,092 100.00
Nominee registered and non-Finnishholders 35.2% (June 30, 2015: 35.6%)
Households19.0% (19.1%)
General government9.7% (9.8%)
Financial and insurance corporations14.3% (13.8%)
Non-profit institutions5.4% (5.5%)
Non-financial corporations and housingcorporations16.4% (16.3%)
Owners by category by
shares owned
30,416
owners
(June 30,
2015: 30,744)