Caverion Corporation Interim Report for January 1 – March 31, 2016

Caverion Corporation     Interim Report      April 28, 2016 at 9.00 a.m. EEST


January 1 – March 31, 2016

·         Order backlog: EUR 1,589.4 (12/2015: 1,461.4) million, an increase of 9% from the end of last year.

·         Revenue: EUR 560.6 (563.4) million.

·         EBITDA: EUR 11.5 (14.2) million, or 2.0 (2.5) percent of revenue.

·         Free cash flow: EUR -28.8 (0.8) million.

·         Earnings per share, basic: EUR 0.03 (0.04) per share.

Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.


EUR million 1-3/16 1-3/15 Change 1-12/15
Order backlog 1,589.4 1,392.4 14% 1,461.4
Revenue 560.6 563.4 -1% 2,443.0
EBITDA 11.5 14.2 -19% 91.5
EBITDA margin, % 2.0 2.5   3.7
Operating profit 4.8 7.9 -38% 65.0
Operating profit margin, % 0.9 1.4   2.7
Net profit for the period 3.3 5.4 -40% 46.6
Earnings per share, basic, EUR 0.03 0.04 -41% 0.37
Working capital 17.4 -13.1   -13.6
Free cash flow -28.8 0.8   53.9
Interest-bearing net debt 59.2 49.7 19% 29.8
Gearing, % 26.4 23.0   11.6
Personnel, average for the period 17,506 17,004 3% 17,321

Word from the President and CEO Fredrik Strand

“Our order backlog grew by 8 percent from the end of last year and by 15 percent from the end of March 2015 at comparable exchange rates. Since the start of the year, we have announced two big and exciting life cycle contracts in line with our strategy. In Finland, we will deliver the Total Technical Solutions covering all building systems in the Nummi service centre for the City of Hämeenlinna. Once completed, we will be responsible for the property’s Technical Maintenance and Managed Services for the next 20 years. This means Caverion will be responsible for the property’s usability, conditions, safety and energy use during its entire life cycle. Another similar but even bigger project worth over EUR 80 million was signed at Kalvebod Brygge in Copenhagen at the beginning of the year. It is one of the largest PPP projects in Denmark and also one of the largest orders Caverion has ever received. These projects show that we are bringing our vision to life by providing Life Cycle Solutions for our clients.

We are still affected by changes in our operating environment in e.g. Norway. The market conditions in Norway have not improved from the end of 2015 and Caverion does not expect any immediate improvement.

During the period, we have also recognised a lower than planned utilisation rate. This mainly relates to the utilisation rate in Technical Installation and Maintenance in Sweden and Denmark-Norway, which was lower than expected during the first quarter. We have initiated actions to mitigate additional negative outcome: closed non-performing units, merged regions, made temporary lay-offs as well as decreased our administrative costs in the divisions. At the end of the first quarter we have 300 people on temporary layoffs and have initiated restructuring actions corresponding to a cost of EUR 2.0 million in the first quarter.

During the period, we continued to invest in the implementation of our harmonised systems througout the group. At the end of the first quarter both Northern and Central Europe now share the same infrastructure. In the second quarter we continue to implement the harmonised systems in all our divisions, which also enable easier integration of potential acquired businesses into our operations."


Market outlook for Caverion’s services and solutions

The megatrends in the industry, such as the increase of technology in buildings, energy efficiency requirements, increasing digitalisation and automation as well as urbanisation continue to promote demand for Caverion’s services and solutions over the coming years.

The Technical Installation and Maintenance market is expected to remain stable. Requirements for increased energy efficiency, better indoor conditions and tightening environmental legislation will be significant factors supporting the positive market development. In Norway, the general economy has been impacted by the slowdown in the oil industry, which may continue to have a negative effect on the Technical Installation and Maintenance business.

In the Large Projects market, the new tenders for buildings and industry are expected to increase during the year. Positive signs have been seen both in received orders and in tendering activity, especially in the public and industrial sectors and we expect the positive trend to continue. Low interest rates and availability of financing are expected to support investments. The demand for Design & Build of Total Technical Solutions is expected to develop favourably in the large and technically demanding projects. The slowdown in the nuclear industry in Germany and Sweden, the mining industry in Sweden and the oil industry in Norway is still expected to continue and may result in further project postponements or cancellations.

Underlying demand for Managed Services is expected to remain strong. As technology in buildings is increasing the need for new services and the demand for Life Cycle Solutions are expected to increase. Clients’ tendency towards focusing on their core operations continues to open opportunities for Caverion in terms of outsourced operation and maintenance especially for public authorities, industries and utilities.

Guidance for 2016

Caverion revised its guidance on April 27, 2016, according to which Caverion estimates that the Group’s revenue for 2016 will remain at the previous year's level (2015: EUR 2,443 million) and the Group’s EBITDA for 2016 will grow from the previous year (2015: EUR 91.5 million).

Caverion foresees that the divisions Sweden and Denmark-Norway cannot recover their lower performance in the first quarter in Technical Installation and Maintenance during the rest of the year. Low utilisation rate and restructuring measures within the Group in relation to this are expected to affect the reported EBITDA in 2016. Managed Services and Large Projects are expected to develop according to plan.


Caverion will hold a news conference and webcast on the Interim Report on Thursday, April 28, 2016, at 11:00 a.m. (Finnish Time, EEST) at the Kämp Hotel (Gallen-Kallela meeting room), Kluuvikatu 2, Helsinki, Finland. The news conference can also be viewed live on Caverion’s website at It is also possible to participate in the event through a conference call by calling the assigned number +44(0)20 3427 1909 at 10:55 a.m. (Finnish time, EEST) at the latest. Participant code for the conference call is “8764402 / Caverion”. More practical information on the news conference can be found on Caverion's website,

Financial information and IR events in 2016

Interim Reports will be published on July 21 and October 27, 2016. Financial reports and other investor information are available on Caverion's website,, and IR App. The materials may also be ordered by sending an e-mail to

Caverion will also arrange a Capital Markets Day in Helsinki, Finland on September 8, 2016 at 9:00 a.m. (EEST). Further information on the programme will be published as a stock exchange release closer to the date.


For further information, please contact:

Antti Heinola, Chief Financial Officer, Caverion Corporation, tel. +358 40 352 1033,

Milena Hæggström, Head of Investor Relations, Caverion Corporation, tel. +358 40 5581 328,

Distribution: Nasdaq Helsinki, principal media,

About Us

Caverion provides smart technical solutions and services for buildings, industrial processes and infrastructure. Our unique service offering covers the entire life cycle: design, build and maintenance. Our vision is to be the first choice in digitalising environments for customers, employees, partners and investors. Our revenue in 2018 was approximately EUR 2.2 billion. Caverion has about 15,000 employees in 10 countries in Northern, Central and Eastern Europe. Caverion’s shares are listed on Nasdaq Helsinki. Twitter: @CaverionGroup


Documents & Links


Interim Report for January 1 – March 31, 2016
Interim Report