Destia Group Oyj - Quarterly report

REVENUE AND ORDER BOOK INCREASED AS PROFITABILITY WEAKENS

Destia Group Plc

STOCK EXCHANGE RELEASE

August 11, 2015 at 9.00 (CET +1)

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

Destia interim report for January−June 2015

REVENUE AND ORDER BOOK INCREASED AS PROFITABILITY WEAKENS

• Revenue increased by 5.8 per cent to MEUR 179.6 (169.7).

• Operating result fell short of the comparison period and was MEUR -3.7 (0.0).

• The order book developed positively in the first half of the year and was MEUR
821.4 (717.6). Growth in comparison to the corresponding period last year was
14.5 per cent.

• The MEUR 65 bond released to institutional investors by Destia Group Plc on 19
June 2014 was listed on the Helsinki Stock Exchange maintained by NASDAQ OMX
Helsinki Oy on 17 June 2015.

• Occupational safety remained at an excellent level: the accident frequency was
6.8 (6.8).

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

Market guidance for 2015 changed regarding the operating profit

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

• PREVIOUS MARKET GUIDANCE: Destia's revenue is forecasted to grow slightly but
operating profit is forecasted to fall short of the previous year in 2015.

Destia lowers its market guidance regarding the 2015 operating profit. The
result was weakened by maintenance procedures caused by challenging weather
conditions in winter in certain parts of Finland and by two large on-going
failed projects.

               Destia    Destia   Destia    Destia   Destia     Destia
                Group  subgroup    Group  subgroup    Group   subgroup
Group's key   4-6/201  4-6/2014  1-6/201  1-6/2014  7-12/20  1-12/2014
figures             5                  5                 14
(IFRS),
MEUR

Revenue         105.3     102.0    179.6     169.7    261.8      431.5
Operating         1.1       4.0     -3.7       0.0     12.5       15.1
result
% of revenue      1.1       3.9     -2.0       0.0      4.8        3.5
Result for       -0.1       2.9     -4.7      -0.4      5.5       10.5
the
period
% of revenue     -0.1       2.8     -2.6      -0.2      2.1        2.4
Return on                            6.9      21.1      9.2       20.9
investment,
%
Earnings per     -1.8              -58.6               68.6
share, EUR
Equity                              28.2      47.8     29.4       34.3
ratio, %
Net gearing,                        99.3     -51.3     42.4      -41.2
%
Average                            1 474     1 501    1 502      1 502
personnel
Occupational
accidents
resulting
in
absence from                         6.8       6.8      9.3        9.3
work
*)
Order book                         821.4     717.6    628.2      628.2
at the
end of
period

*)
Occupational
accidents of
Destia´s own
personnel
per one
million
working
hours

President & CEO Hannu Leinonen comments on the reporting period:"Destia's first half-year went moderately well in a challenging market
situation. Whilst overall demand was at a relatively stable level, competition
for projects continued to be fierce. Our revenue and order book increased during
the reporting period. Our order book is clearly on a better level compared to
the corresponding time of the previous year. During the reporting period, we
concluded significant new contracts, both in our core businesses and in our
focus areas of strategic growth.

The weakening of our profitability during the period was disappointing. The
result for the corresponding period last year was improved by individual ongoing
projects that were particularly successful. This spring, on the other hand, the
result was encumbered by challenging weather conditions in winter in certain
parts of Finland and by two large on-going failed projects. We are paying
particular attention to risk management and profitability in projects from the
tendering stage on in order to improve profitability.

I am satisfied that our occupational safety has remained at a good level. At
Destia we have been investing in the improvement of occupational safety, and I
am happy that this also shows in what we do in practice. In our business, an
accident frequency of 6.8 is excellent."

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 will contract by one per cent this year, and growth
will not be evident until next 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 for increasing
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, 10 August 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 2015

Destia will publish its interim report for January−September on 27 October 2015.

DISTRIBUTION:

NASDAQ OMX Helsinki

Key media

www.destia.fi/en
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:

08101157.pdf