Caverion Corporation Financial Statements Bulletin for January 1 - December 31, 2015

Guidance follow-up for 2015

The Group’s performance was in line with the guidance for 2015. The revenue amounted to EUR 2,443.0 (2,406.6) million and remained at the previous year's level, while EBITDA margin grew significantly to 3.7 percent (2.8%).

October 1 – December 31, 2015

·         Order backlog: EUR 1,461.4 (1,323.6) million.

·         Revenue: EUR 667.8 (660.2) million.

·         EBITDA: EUR 34.0 (34.3) million, or 5.1 (5.2) percent of revenue.

·         Working capital: EUR -13.6 (-19.3) million.

·         Operating cash flow before financial and tax items: EUR 83.1 (100.0) million.

January 1 – December 31, 2015

·         Revenue: EUR 2,443.0 (2,406.6) million.

·         EBITDA: EUR 91.5 (67.5) million, or 3.7 (2.8) percent of revenue.

·         Operating cash flow before financial and tax items: EUR 85.8 (113.5) million.

·         Earnings per share, basic: EUR 0.37 (0.22) per share.

Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.

KEY FIGURES

DIVIDEND PROPOSAL: The Board of Directors proposes a dividend of EUR 0.28 per share

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.28 per share be paid.

Word from the President and CEO Fredrik Strand

“During 2015, our business succeeded well in general and we had a good development with new clients and contracts. Tough pricing environment prevailed in the market throughout the year but Caverion was able to maintain its price levels with focus on quality and execution. In 2015, our order backlog grew by 10 percent. Throughout the year, we entered into a number of new demanding life cycle contracts and total technical solutions projects in line with our strategy. We have also been affected by changes in our operating environment, e.g. in Norway the general economy has been impacted by the slowdown in the oil industry.

The stabilisation of operations could be seen in the improved profitability throughout the year: Caverion improved its earnings per share (by 69%) and EBITDA (by 36%) significantly. During the year, we continued to invest in harmonised systems througout the group in order to provide our employees with the right tools to tender for new business in line with our updated client offering and tender processes. Furthermore, the Group had negative working capital, enabling development of the business further in a positive way.

The strategy execution progressed according to plan in 2015. Caverion is now ready for the next phase of its strategy, with a strengthened focus on profitable growth and developing the group business mix. To drive growth, Caverion introduced a unified market offering with innovative solutions at the Capital Markets Day in September in order to meet the client demand for Active Life Cycle Management. Caverion is targeting further growth especially in Large Projects and Managed Services, in its widest form offered as Life Cycle Solutions.

As we enter 2016 the main focus will be on the continued implementation of harmonised systems in all our divisions. We are seeking benefits from this common enterprise architecture by supporting our employees during tender processes and facilitating improved project management follow-up. It also enables easier integration of potential acquired businesses into our operations. Caverion aims to reach its financial targets by the end of 2016 firstly by benefiting from the recent investments into operational efficiency and by focusing on procurement and administrative efficiency. Secondly, the change in business mix towards growth in Large Projects and Managed Services promotes revenue and profitability growth supported by innovative and well managed technical installation and maintenance business.”

OUTLOOK FOR 2016

Market outlook for Caverion’s services and solutions

The megatrends in the industry, such as the increase of technology in buildings, energy efficiency requirements, increasing digitalisation and automation as well as urbanisation continue to promote demand for Caverion’s services and solutions over the coming years.

The technical installation and maintenance business is expected to remain stable. Requirements for increased energy efficiency, better indoor conditions and tightening environmental legislation will be significant factors supporting the positive market development. In Norway, the general economy has been impacted by the slowdown in the oil industry, which may continue to have a negative effect on the technical installation and maintenance business.

In the large projects business, the new tenders for buildings and industry are expected to increase during the year. Positive signs have been seen in tendering activity, especially in the public and industrial sectors and we expect the positive trend to continue. 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. The slowdown in the nuclear industry in Germany and Sweden, the mining industry in Sweden and the oil industry in Norway is still expected to continue and may result in further project postponements or cancellations.

Demand for managed services is expected to remain strong. As technology in buildings is increasing the need for new services and the demand for life cycle solutions are expected to increase. Clients’ tendency towards focusing on their core operations continues to open opportunities for Caverion in terms of outsourced operation and maintenance especially for public authorities, industries and utilities.

Possible 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 2016

Caverion estimates that the Group’s revenue for 2016 will grow from the previous year (2015: EUR 2,443 million) and the Group’s EBITDA for 2016 will grow significantly from the previous year (2015: EUR 91.5 million).

INFORMATION SESSION, WEBCAST AND CONFERENCE CALL

Caverion will hold a news conference and webcast on the Financial Statements Bulletin on Wednesday, January 27, 2015, at 11:00 a.m. (Finnish Time, EEST) at the Kämp Hotel (Paavo Nurmi meeting rooms), 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)20 7162 0077 at 10:55 a.m. (Finnish time, EEST) at the latest. Participant code for the conference call is “Caverion”. More practical information on the news conference can be found on Caverion's website, www.caverion.com/investors.

Annual General Meeting 2016

Caverion Corporation's Annual General Meeting will be held on Monday, March 21, 2016, starting at 10:00 a.m. (Finnish time, EET) in Messukeskus in Helsinki, Finland. 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 2016

The Annual Report, including the financial statements for 2015, will be published on Caverion's website and IR App in English and Finnish at the latest during week 8 in February 2016. Interim Reports will be published on April 28, July 21 and October 27, 2016.

Financial reports and other investor information are available on 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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