Caverion Oyj - Company Announcement

Caverion’s Capital Markets Day 2015: Caverion is developing its business mix to drive profitable growth

Helsinki, Finland, 2015-09-09 08:00 CEST (GLOBE NEWSWIRE) -- 
CAVERION CORPORATION   STOCK EXCHANGE RELEASE   SEPTEMBER 9, 2015 at 9:00 EEST

Caverion's Capital Markets Day 2015: Caverion is developing its business mix to
drive profitable growth 

Caverion will today hold its Capital Markets Day in Aachen, Germany. The event
focuses on Caverion's strategy and business prospects. There are no changes to
the previously communicated financial targets, market outlook or guidance for
2015. 

“Caverion is progressing well to reach its strategic targets. The market
megatrends, energy efficiency, increasing technology, growing digitalisation
and urbanisation, support the future demand for our business and are changing
the market. During the past year, we have invested in our harmonised
operational model, processes and enterprise architecture and thereby created
”One Caverion”.  As our operational model and enterprise architecture are now
under full deployment, we are ready for the next phase of our strategy, with a
strengthened focus on growth and developing our group business mix. To drive
growth, we are introducing a unified market offering  with innovative 
solutions,“ says President and CEO Fredrik Strand. 

Targeting growth in Large Projects and Managed Services

Caverion is targeting further growth especially in Large Projects and Managed
Services. Large projects offer customers total technical solutions, including
Advisory Services, Design & Engineering, Project Management and Project
Execution. With Managed Services, Caverion operates, develops and maintains
technology and systems and related processes in commercial, industrial and
residential buildings for the medium-term. 

“This does not mean that we are moving away from our  business in technical
installation and maintenance. Rather we are adding a new dimension to it and
moving forward to meet the growing demand by our clients for outsourcing the
maintenance of their properties and plants. As the buildings become more
complex, their usability and life cycle cost will be increasingly important.
This concerns not only new buildings, but also existing buildings. The
renovation need is distinct in all our markets,” Strand continues. 

Introducing a unified market offering with innovative solutions

“Based on our technical expertise and capabilities, we focus on efficiently
operating buildings through Managed Services, in its widest form offered as
Life Cycle Solutions. Clients are increasingly interested in energy and cost
efficiency of their buildings and plants over the entire life cycle. Life cycle
solutions encompass all the service areas that we offer. Our offering helps
clients to move life cycle responsibility from several suppliers to one
organisation in order to guarantee costs, energy efficiency and optimal
conditions for decades to come. Our aim is to be a leading European provider of
advanced and sustainable life cycle solutions for buildings and industries,“
Strand says. 

Strong financial position supporting strategy execution

Caverion's long-term financial targets by the end of 2016 are intact: average
annual growth in revenue of more than 10%, EBITDA margin over 6% of revenue and
negative working capital. There is no change to the dividend policy either: 
the company's aim is to distribute at least 50% of the result for the year
after taxes, excluding changes in fair value, as dividend and capital
redemption to the company's shareholders. 

The change in business mix towards growth in Large Projects and Managed
Services support the achievement of the revenue and profitability targets by
the end of 2016 through their higher growth and margin potential. Caverion's
target to reach negative working capital by the end of 2016 is pursued by
focusing on efficient invoicing and working capital management. “Efficient
working capital management enables us to develop our business mix. It also
gives us flexibility to manage our other financial targets,” says Strand. 

Caverion's profitability is on track to reach the financial target. EBITDA in
the first half of the year amounted to EUR 36.2 million, up from the previous
year. The improved performance in the second quarter compared to last year, is
largely explained by the write downs connected to the project portfolio reviews
done in 2014. The performance during the rest of the year is considered to be
more in line with last year. 

For 2015, Caverion estimates that the Group's revenue will remain at the
previous year's level and that the Group's EBITDA margin for 2015 will grow
significantly. 

Overview of the programme

During the Capital Markets Day, President and CEO Fredrik Strand will talk more
about Caverion's strategic targets, business mix development and growth. Werner
Kühn, Executive Vice President & CEO, Division Germany, explains how Caverion
moves towards providing Large Projects with total technical solutions and a
life cycle focus.  Thomas Lundin, Executive Vice President & CEO, Division
Sweden, describes how Caverion is moving from Technical Maintenance towards
Managed Services and Jarno Hacklin, Executive Vice President & CEO, Division
Finland, explains how increasing demand for Life Cycle Solutions supports
Caverion's growth. And finally, Antti Heinola, Chief Financial Officer, will
give a financial update and describe how Caverion is increasing efficiency and
focusing on procurement and sourcing. 

After the management presentations the Capital Markets Day guests will visit
R&D laboratory in Caverion's Space for Innovation. The laboratory specialises
in the research and development of advanced products related to ventilation,
cooling and automation as well as in customised solutions for highly demanding
facilities such as cleanrooms in hospitals and laboratories. In addition,
testing and simulation of indoor climate and fire extinguishing are being
performed in the laboratory to ensure functionality and reliability in actual
conditions. 



The Capital Markets Day will start at 9:00 a.m. CEST (10:00 a.m. Finnish time,
EEST). All presentations are available in English at
www.caverion.com/investors. It is also possible to follow the presentations
through a live webcast at approximately 9:00 a.m.-12:30 p.m. CEST. 



For additional information, please contact:

Milena Hæggström, Head of Investor Relations, tel. +358 40 5581 328,
milena.haeggstrom@caverion.fi 


CAVERION CORPORATION

Distribution: NASDAQ Helsinki, principal media, www.caverion.com



Caverion designs, builds, operates and maintains user-friendly and
energy-efficient technical solutions for buildings, industries and
infrastructures. Our services and solutions are used in commercial, industrial,
public and residential buildings and processes ensuring business continuity,
safe, healthy and comfortable conditions, optimised performance and cost
control. We aim to be a leading European provider of advanced and sustainable
life cycle solutions. Our strengths include technological competence and
comprehensive services, covering all technical disciplines throughout the life
cycle of the property and industrial plant. Our revenue for 2014 amounted to
approximately EUR 2.4 billion. Caverion has about 17,000 employees in 12
countries in Northern, Central and Eastern Europe. Caverion's shares are listed
on Nasdaq Helsinki. www.caverion.com