Consti Yhtiöt Oyj - Interim report (Q1 and Q3)

Consti Interim Report for January-March 2017: Net sales and order backlog grew

CONSTI GROUP PLC INTERIM REPORT 4 MAY 2017, at 8.30 a.m.

Consti Group Plc Interim Report for 1 January - 31 March 2017: Net sales and
order backlog grew

1-3/2017 highlights (comparison figures in parenthesis 1-3/2016):
·      Net sales 57.3 (51.4) million euro; growth 11,5%
·      EBITDA 0.8 (0.6) million euro and EBITDA margin 1.3 (1.2)%
·      Operating profit 0.3 (0.2) million euro and operating profit (EBIT)
margin % 0.5 (0.4)%
·      Order backlog 212.9 (191.7) million euro; growth 11.0%
·      Free cash flow -0.5 (3.4) million euro
·      Earnings per share 0.00 (-0.01) euro

Guidance on the Group outlook for 2017:
The company estimates that its net sales for the entire year 2017 will grow
compared to 2016.


+--------------------------+--------+--------+--------+------------------------+
|KEY FIGURES (EUR 1,000)   |1-3/2017|1-3/2016|Change %|       1-12/2016        |
+--------------------------+--------+--------+--------+------------------------+
|Net sales                 |  57 268|  51 367|  11.5 %|                 261 558|
+--------------------------+--------+--------+--------+------------------------+
|Adjusted EBITDA*          |     772|     660|  17.0 %|                  13 142|
+--------------------------+--------+--------+--------+------------------------+
|Adjusted EBITDA margin, % |   1.3 %|   1.3 %|        |                   5.0 %|
+--------------------------+--------+--------+--------+------------------------+
|EBITDA                    |     772|     637|  21.2 %|                  13 120|
+--------------------------+--------+--------+--------+------------------------+
|EBITDA margin, %          |   1.3 %|   1.2 %|        |                   5.0 %|
+--------------------------+--------+--------+--------+------------------------+
|Adjusted EBIT*            |     278|     214|  29.8 %|                  11 004|
+--------------------------+--------+--------+--------+------------------------+
|Adjusted EBIT margin, %   |   0.5 %|   0.4 %|        |                   4.2 %|
+--------------------------+--------+--------+--------+------------------------+
|Operating profit (EBIT)   |     278|     191|  45.3 %|                  10 982|
+--------------------------+--------+--------+--------+------------------------+
|Operating profit (EBIT)   |   0.5 %|   0.4 %|        |                   4.2 %|
|margin, %                 |        |        |        |                        |
+--------------------------+--------+--------+--------+------------------------+
|Profit for the period     |      17|     -77|        |                   7 978|
+--------------------------+--------+--------+--------+------------------------+
|Order backlog             | 212 910| 191 725|    11.0|                 190 806|
+--------------------------+--------+--------+--------+------------------------+
|Free cash flow            |    -477|   3 394|        |                  10 865|
+--------------------------+--------+--------+--------+------------------------+
|Cash conversion, %        | -61.8 %| 532.6 %|        |                  82.8 %|
+--------------------------+--------+--------+--------+------------------------+
|Net interest-bearing debt |  15 036|  15 014|   0.1 %|                  12 097|
+--------------------------+--------+--------+--------+------------------------+
|Gearing, %                |  49.7 %|  61.4 %|        |                  40.8 %|
+--------------------------+--------+--------+--------+------------------------+
|Return on investment, ROI |  22.8 %|  17.0 %|        |                  22.7 %|
|%                         |        |        |        |                        |
+--------------------------+--------+--------+--------+------------------------+
|Number of personnel at    |   1 029|     904|  13.8 %|                     935|
|period end                |        |        |        |                        |
+--------------------------+--------+--------+--------+------------------------+
|Earnings per share,       |    0.00|   -0.01|        |                    1.05|
|undiluted (EUR)           |        |        |        |                        |
+--------------------------+--------+--------+--------+------------------------+
 * New ESMA (European Securities and Markets Authority) guidelines on
 Alternative Performance Measures (APMs) have been effective as of the
 financial year 2016. Consti presents APMs to reflect the underlying
 business performance and to enhance comparability between financial
 periods. As of Q1 2016, Consti relabels the previously referenced
 "before non-recurring items" with "before items affecting
 comparability" (IAC). For a more detailed description of items
 affecting comparability, see section "Sales, result and order
 backlog".



CEO's review

- Demand continued good for renovations and building technology services during
the first quarter. New orders increased and our order backlog grew. Our net
sales increased 11.5 percent and was 57.3 million euro. Net sales growth was
strong in Technical Building Services and Building Facades. Our profitability
remained stable for this time of year. Our operating profit developed positively
and was 0.3 million euro, which is 0.5 percent of net sales. Our strong order
base at the end of the reporting period, 212.9 (191.7) million euro, offers a
good starting point for the rest of the year.

The market situation has remained good and new orders increased slightly over
16 percent. New significant work sites include for example the renewal of
shopping mall Jumbo in Vantaa, the complete renovation of ATT's 110 apartments
at Siilitie 5 in Helsinki Herttoniemi, and a technical building services
subcontract in Pasila's Tripla venture.

Consistent with our strategy, we have also expanded our business with
acquisitions. During the reporting period acquisitions strengthened our market
position in pipeline renovations in the Oulu region and in roof renovations in
the Greater Helsinki area. As a result, we took a significant step towards full
service Consti-offering in the Oulu region.

I believe that the demand for renovations and technical building services will
continue their steady growth this year. At the same time, estimates affirm that
the extremely rapid pace of new construction will level off, which will make
building technology and renovation professionals more readily available for
recruitment and therefore improve our general growth opportunities, says Consti
Group CEO Marko Holopainen.

Operating environment and outlook for the 2017


Renovation construction's portion of Finland's house construction market has
clearly grown during the past ten years. In 2016 Finland's renovation
construction market was 12.4 billion euro, which is the equivalent of
approximately 50 percent of the entire house construction market.

The Confederation of Finnish Construction Industries RT estimates in its March
review that the extremely rapid pace of new construction will level off
significantly during 2017. Growth will slow down particularly due to the
stabilizing of new housing construction. RT estimates that the entire
construction market will grow 2-3 percent in 2017.

Renovation construction growth will remain stable according to RT's estimate and
the growth estimate for 2017 is 2.0 percent. The general economic situation has
a significantly smaller impact on renovation construction and technical building
services than it does on the new construction market. Office renovations,
however, are expected to increase as the economic situation improves.
Euroconstruct also estimated in its December 2016 forecast that renovation in
Finland will increase approximately two percent from the previous year. The
Finnish Association of HPAC Technical Contractors estimates in its March review
of business conditions that the building technology conditions will remain good
in renovation construction.


In addition to ageing, buildings require more renovation, technical building
services and building technology maintenance services due to heightened energy
efficiency requirements, urbanization, modification of the use of buildings, the
development of housing automatisation and the increase need for barrier-free
buildings.

Consti estimates that its total annual net sales for 2017 will grow compared to
2016

Press conference
A press conference for analysts, portfolio managers and media will be arranged
on Thursday 4 May 2017 at 10.00 Hotel Haven, at Unioninkatu 17, Helsinki. The
conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela.

Financial communication in 2017
Half-year report 1-6/2017 will be published 10 August 2017
Interim report 1-9/2017 will be published 9 November 2017

Further information:
Marko Holopainen, CEO +358 400 458 158
Esa Korkeela, CFO +358 40 730 8568


Distribution
Nasdaq Helsinki
Key media
www.consti.fi

Consti is a leading Finnish company concentrating on renovation and technical
services. Consti offers comprehensive building technology, pipeline renovation,
renovation contracting, façade renovation and other demanding construction and
maintenance services for residential and commercial buildings. In 2016, Consti
Group's net sales amounted to 262 million euro. It employs about 900
professionals in renovation construction and building technology.




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Priedai:

Consti interim report 1-3/2017.pdf