Destia Group Oyj - Interim report (Q1 and Q3)

REVENUE AND ORDER BOOK INCREASE, PROFITABILITY WEAKER THAN THE PREVIOUS YEAR

Destia Group Plc
STOCK EXCHANGE RELEASE
October 27, 2015 at 3:00 pm (CET +1)

This is a summary of the January-September 2015 interim report. The complete
report with tables is attached to this release and available at
www.destia.fi/en.
Destia's interim report for January−September 2015

REVENUE AND ORDER BOOK INCREASE, PROFITABILITY WEAKER THAN THE PREVIOUS YEAR

• Revenue increased by 8.4 per cent to MEUR 331.8 (306.0).
• The operating result was MEUR 7.9 (11.4).
• The order book developed positively and was MEUR 753.0 (658.7). Growth in
reference to the corresponding period last year was 14.3 per cent.
• During the reporting period, working capital increased clearly as accounts
receivable increased.
• Occupational safety continued to improve and was clearly on a better level
compared to the corresponding time of the previous year: 7.1 (9.8).
• Destia's revenue is forecasted to grow slightly but operating profit is
forecasted to fall significantly from the previous year in 2015.

Group          Destia   Destia   Destia   Destia    Destia   Destia
               Group    Group    Group    subgroup  Group    subgroup
Key figures    7-9/201  7-9/201  1-9/201  1-9/2014  7-12/20  1-12/2014
(IFRS), MEUR   5        4        5                  14


Revenue        152.2    136.3    331.8    306.0     261.8    431.5
Operating      11.5     9.3      7.9      11.4      12.5     15.1
profit
per cent of    7.6      6.9      2.4      3.7       4.8      3.5
revenue
Result for     8.3      3.4      3.6      7.8       5.5      10.5
the period
% of revenue   5.5      2.5      1.1      2.5       2.1      2.4
Return on                        8.3      22.4      9.2      20.9
investment, %
Earnings per   104.09   42.49    45.46              68.59
share, EUR
Equity ratio,                    28.3     33.0      29.4     34.3
%
Net gearing,                     86.0     -4.0      42.4     -41.2
%
Average                          1,505    1,520     1,502    1,502
personnel
Occupational                     7.1      9.8       9.3      9.3
accidents
resulting in
absence from
work*)
Order book at                    753.0    658.7     628.2    628.2
the end of
period

*)
Occupational
accidents
per one
million
working
hours

President & CEO Hannu Leinonen comments on the reporting period:

“I am satisfied with the growth in our order book and revenue throughout the
reporting period despite the challenging market situation. Our order book in
particular has developed quite positively despite the competitive situation with
new contracts that continues to be fierce.

In the previous quarter, we had to lower our profit forecast. Our operating
result in the third quarter, however, was slightly better than the corresponding
period of the previous year. In the reporting period, our profitability was
weakened particularly by some individual unsuccessful projects. In order to
improve profitability, we are continuing to focus particularly on risk
management and profitability monitoring throughout the project life-cycle.

In accordance with our strategy, we have succeeded in increasing the volume of
private sector orders in our order book, which shows that the development of our
customer and sales work has been fruitful. During the reporting period, we also
concluded the apron extension contract at Helsinki Airport. It is Destia's first
project implemented based on the alliance model. In this project, which will be
implemented in a particularly demanding working environment, we utilise our
strong and diverse infrastructure expertise. The co-operative project will be a
significant addition to the large project portfolio in our order book.

In the reporting period, we commissioned the annual personnel survey carried out
by an external organisation, and I am very happy with the results, which
continued to develop positively. The overall average of the survey of 3.81 on a
scale of 1−5 was up from the previous year (3.79) and was higher than the
average for similar companies. Our occupational safety level also improved and
our accident frequency was at an excellent level (7.1). We are continuing our
investment in personnel and occupational safety development in accordance with
our strategy.”

Outlook for 2015

The operating environment for the infrastructure field and the whole
construction sector remains challenging as uncertainty in the economy continues.
The infrastructure market is declining this year. According to forecasts by
different forecasting bodies, growth will be evident next year and the following
year. In a challenging market situation, competition remains fierce. Demand is
stable, but projects being tendered for are smaller in size than before.

Destia's order book, which is at a better level compared to the corresponding
time of the previous year, and the measures taken to improve customer work and
project management provide a solid foundation for the positive improvement of
revenue. Destia is paying particular attention to measures to increase
profitability.

Market guidance for 2015

Destia's revenue is forecasted to grow slightly but operating profit is
forecasted to fall significantly from the previous year in 2015.

Vantaa, 27 October 2015

Destia Group Plc
Board of Directors

More information
President & CEO Hannu Leinonen, tel. +358 20 444 4000 and CFO Pirkko Salminen,
tel. +358 50 302 2485

Financial reporting
Destia will publish its financial statements for 2015 on 11 February 2016.
Destia is a Finnish infrastructure and construction service company. We build,
maintain and design traffic routes, industrial and traffic environments, as well
as complete living environments. Our services cover the whole spectrum, from
comprehensive overground operations to subterranean construction. In 2014 the
revenue of the Destia Group was over €430 million. Destia employs about 1,500
people.

Destia - Building the Bigger Picture. www.destia.fi/en

Attachments:

10274918.pdf