2015-01-29 08:00:00 CET
2015-01-29 08:00:04 CET
REGULATED INFORMATION
Caverion Oyj - Financial Statement Release
Caverion Corporation's Financial Statements Bulletin 2014: Strong fourth quarter – Good progress towards the 2016 financial targets
Helsinki, 2015-01-29 08:00 CET (GLOBE NEWSWIRE) --
CAVERION CORPORATION FINANCIAL STATEMENTS BULLETIN January 29,
2015 at 9:00 a.m.
FINANCIAL STATEMENTS BULLETIN FOR JANUARY 1 - DECEMBER 31, 2014
Strong fourth quarter - Good progress towards the 2016 financial targets
Guidance follow-up for 2014
Group's revenue with comparable exchange rates and EBITDA excluding
non-recurring items for 2014 amounted to EUR 2,475.4 (2,543.6) million and EUR
80.7 (81.7) million, respectively, in line with the previous year.
January 1 - December 31, 2014
· Order backlog: EUR 1,323.6 (1,240.7) million on December 31, an
increase of 7% from the end of last year.
· Revenue: EUR 2,475.4 (2,543.6) million with comparable exchange rates
and EUR 2,406.6 (2,543.6) million with exchange rates for the period.
- Revenue decreased by 3 percent at previous year's exchange rates for
corresponding period.
· EBITDA: excluding non-recurring items EBITDA was EUR 80.7 (81.7)
million, or 3.4 (3.2) percent of revenue.
- EBITDA including non-recurring items was EUR 67.5 (70.9) million, or
2.8 (2.8) percent of revenue.
- The non-recurring items totalled EUR 13.2 million, consisting of
non-recurring costs of EUR 26.4 million offset by a non-recurring income of EUR
13.2 million in Norway.
- Projects, mainly in Norway and Denmark, diluted the profitability
during the first half of the year 2014. The turnaround of the project
operations progressed well during the second half of the year.
· Working capital: Working capital amounted to EUR -19.3 million
(Q4/2013: 46.0).
· Operating cash flow before financial and tax items: EUR 113.5 (108.5)
million.
October 1 - December 31, 2014
· Revenue: EUR 660.2 (688.1) million.
- Revenue decreased by 2 percent at previous year's exchange rates for
corresponding period.
· EBITDA: Profitability improved from the previous year and EBITDA
excluding non-recurring items was EUR 39.3 (26.7) million, or 6.0 (3.9) percent
of revenue.
- EBITDA including non-recurring items was EUR 34.3 (25.3) million, or
5.2 (3.7) percent of revenue.
· Operating cash flow before financial and tax items: EUR 100.0 (101.3)
million.
Unless otherwise noted, the figures in brackets refer to the corresponding
period in the previous year. Comparative figures for 2013 are carve-out figures
for the periods before the effective date of the partial demerger (June 30,
2013).
KEY FIGURES
EUR million 10-12/1 10-12/1 Change 1-12/14 1-12/13 Change
4 3
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Order backlog, end of period 1,323.6 1,240.7 7% 1,323.6 1,240.7 7%
--------------------------------------------------------------------------------
Revenue 660.2 688.1 -4% 2,406.6 2,543.6 -5%
--------------------------------------------------------------------------------
EBITDA 34.3 25.3 36% 67.5 70.9 -5%
--------------------------------------------------------------------------------
EBITDA margin, % 5.2 3.7 2.8 2.8
--------------------------------------------------------------------------------
EBITDA excl. non-recurring 39.3 26.7 47% 80.7 81.7 -1%
items
--------------------------------------------------------------------------------
EBITDA margin excl. 6.0 3.9 3.4 3.2
non-recurring items, %
--------------------------------------------------------------------------------
Operating profit 28.1 19.5 44% 44.2 49.4 -11%
--------------------------------------------------------------------------------
Operating profit margin, % 4.3 2.8 1.8 1.9
--------------------------------------------------------------------------------
Net profit for the period 20.0 17.2 16% 27.6 35.5 -22%
--------------------------------------------------------------------------------
Earnings per share, basic, 0.16 0.14 17% 0.22 0.28 -22%
EUR
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Working capital -19.3 46.0 -19.3 46.0
--------------------------------------------------------------------------------
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Operating cash flow before 100.0 101.3 -1% 113.5 108.5 5%
financial and tax items
---------------------------------------------------
--------------------------------------------------------------------------------
Interest-bearing net debt, 50.2 86.5 -42% 50.2 86.5 -42%
end of period
--------------------------------------------------------------------------------
Gearing, end of period, % 21.1 34.6 21.1 34.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Personnel, average for the 17,161 17,753 -3% 17,300 18,071 -4%
period
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DIVIDEND PROPOSAL: The Board of Directors proposes a dividend of EUR 0.22 per
share
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.22 per share be paid.
Word from the President and CEO Fredrik Strand
“In 2014 we have focused on building Caverion into one, coherent company. The
key to our profitability improvement lies in improving our own internal
efficiency. We have now built the basis for our future by defining a common
operating model. Our processes, organisational structures, skills, and offering
are being designed so that they support us in providing services and solutions
throughout the life cycle of our clients' properties and processes. We have
vast experience and expertise across the company, which we are turning into
best practices by developing our commercial view for the whole group.
We have also improved our project risk management, by introducing transparent
rules for delegation of authority as well as by implementing new steering
committee and project review practices. In each division, we are also setting
up shared project and managed operations offices, which encompass expertise in
delivering demanding contracts to support our 250 local offices. The project
management related to project controls has already been improved and the
ability to run projects according to set targets has improved. As a result, the
turnaround of the project operations has progressed well also during the fourth
quarter.
Furthermore, we have invested in systems, tools and further harmonisation to
shorten the invoicing process. Our improved working capital management can be
seen in our improved operating cash flow for January-December. Implementation
of our common ERP system in our main countries is progressing well. New mobile
devices and systems have also been rolled out. These investments into building
for our future have affected our short-term profitability.
During the second half of the year we have successfully managed to develop our
business mix with several new contracts, for large projects including design
and build of total technical solutions, as well as several new managed services
agreements.
As we start the new year 2015 our strategic focus is gradually shifting more
towards generating profitable growth. We aim to reach our targeted EBITDA
margin of above 6 percent by the end of 2016 firstly by benefiting from our
recent investments into operational efficiency, as described above. Secondly,
we now have the foundation in place for bidding for more demanding contracts
with higher margin potential. In line with this we continue to develop our
business mix with initial focus on Technical Installation & Maintenance, Design& Build of Total Technical Solutions and Managed Services.”
OUTLOOK FOR 2015
Market outlook for Caverion's services and solutions
The mega trends in the industry, such as increase of technology in buildings,
energy efficiency requirements, increasing digitalisation and automation
continue to promote demand for Caverion's services and solutions over the
coming years.
Technical installation and maintenance business is expected to be stable.
Requirements for increased energy efficiency and better indoor conditions and
tightening environmental legislation will be significant factors to support
positive market development.
Large new tenders for buildings and industry are expected to increase during
the year. Positive signs can be seen in tendering activity, especially in the
public and industrial sectors. 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.
Demand for managed services is expected to increase. As technology in buildings
is increasing the need for new services and the demand for life cycle solutions
are expected to increase. Customers' tendency towards focusing on their core
operations continues to open opportunities for Caverion in terms of outsourced
operation and maintenance mainly for public authorities, industries and
utilities.
Overall changes in the operating environment due to growing uncertainty over
the general macroeconomic development and mounting geopolitical tensions may
lead to some cautiousness in project start-ups and service demand.
Guidance for 2015
Caverion estimates that the Group's revenue will remain at the previous year's
level and EBITDA margin for 2015 will grow significantly.
INFORMATION SESSION, WEBCAST AND CONFERENCE CALL
Caverion will hold a news conference and webcast on the Financial Statements
Bulletin on Thursday, January 29, 2015, at 11:00 a.m. (Finnish Time, EET) at 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
www.caverion.com/investors. It is also possible to participate in the event
through a conference call by calling the assigned number +44 (0)207 1620 177
(no conference ID or pin code required) at 10:55 a.m. (Finnish time, EET) at
the latest. More practical information on the news conference can be found on
Caverion's website, www.caverion.com/investors.
Annual General Meeting 2015
Caverion Corporation's Annual General Meeting will be held on Monday, March 16,
2015, starting at 10:00 a.m. (Finnish time, EET) in Messukeskus. Full notice of
the meeting, including the Board of Directors' proposals to the Annual General
Meeting, will be published as a separate stock exchange release.
Financial information in 2015
The Annual Report, including the financial statements for 2014, will be
published on Caverion's website and IR App in English and Finnish at the latest
on week 8 in February 2015. Interim Reports will be published on April 24, July
23 and October 23, 2015.
Financial reports and other investor information are available at Caverion's
website, www.caverion.com/investors, and IR App. The materials may also be
ordered by sending an e-mail to IR@caverion.com.
CAVERION CORPORATION
For further information, please contact:
Antti Heinola, Chief Financial Officer, Caverion Corporation, tel. +358 40 352
1033, antti.heinola@caverion.fi
Milena Hæggström, Head of Investor Relations, Caverion Corporation, tel. +358
40 5581 328, milena.haeggstrom@caverion.fi
Distribution: NASDAQ Helsinki, principal media, www.caverion.com
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