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Consti Oyj — Interim / Quarterly Report 2016
Nov 10, 2016
3306_rns_2016-11-10_88fa1995-1e5a-41f2-9872-cce6508281cd.pdf
Interim / Quarterly Report
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CONSTI
CONSTI'S INTERIM REPORT JANUARY – SEPTEMBER 2016
NET SALES ON PAR WITH LAST YEAR, PROFITABILITY IMPROVED
7-9/2016 highlights (comparison figures in parenthesis 7-9/2015):
- Net sales 70.6 (70.4) million euro; growth 0.3 %
- EBITDA 4.5 (3.6) million euro and EBITDA margin 6.4% (5.1%)
- Adjusted EBITDA 4.5 (3.8) million euro and adjusted EBITDA margin 6.4% (5.4%)
- Operating profit (EBIT) 3.7 (3.0) million and operating profit (EBIT) margin 5.3% 4.2%
- Adjusted EBIT 3.7 (3.2) million euro and adjusted EBIT margin 5.3% (4.5%)
- Order backlog 185.6 (172.3) million euro
- Free cash flow 6.6 (0.1) million euro
- Earnings per share 0.37 (0.25) euro
1-9/2016 highlights (comparison figures in parenthesis 1-9/2015):
- Net sales 186.7 (181.2) million euro; growth 3.0%
- EBITDA 8.2 (7.0) million euro and EBITDA margin 4.4% (3.9%)
- Adjusted EBITDA 8.3 (7.5) million euro and adjusted EBITDA margin 4.4% (4.2%)
- Operating profit (EBIT) 6.5 (5.4) million and operating profit (EBIT) margin 3.5% (3.0%)
- Adjusted EBIT 6.6 (5.9) million euro and adjusted EBIT margin 3.5% (3.2%)
- Free cash flow 10.4 (7.2) million euro
- Earnings per share 0.60 (0.23) euro
Guidance on the Group outlook for 2016:
Consti adjusted its net sales guidance with a stock exchange release on October 26th 2016, in which it stated that the company estimates its net sales to grow compared to 2015. The company previously estimated that "its total annual net sales for 2016 will grow approximately 5-10 percent compared to 2015."
| KEY FIGURES (EUR 1,000) | 7-9/2016 | 7-9/2015 | Change % | 1-9/2016 | 1-9/2015 | Change % | 1-12/2015 |
|---|---|---|---|---|---|---|---|
| Net sales | 70,554 | 70,361 | 0.3 % | 186,735 | 181,212 | 3.0 % | 256,151 |
| Adjusted EBITDA* | 4,521 | 3,788 | 19.4 % | 8,250 | 7,539 | 9.4 % | 12,613 |
| Adjusted EBITDA margin, % | 6.4 % | 5.4 % | 4.4 % | 4.2 % | 4.9 % | ||
| EBITDA | 4,521 | 3,598 | 25.7 % | 8,227 | 7,014 | 17.3 % | 10,507 |
| EBITDA margin, % | 6.4 % | 5.1 % | 4.4 % | 3.9 % | 4.1 % | ||
| Adjusted EBIT* | 3,729 | 3,156 | 18.2 % | 6,558 | 5,887 | 11.4 % | 10,520 |
| Adjusted EBIT margin, % | 5.3 % | 4.5 % | 3.5 % | 3.2 % | 4.1 % | ||
| Operating profit (EBIT) | 3,729 | 2,966 | 25.7 % | 6,535 | 5,362 | 21.9 % | 8,414 |
| Operating profit (EBIT) margin, % | 5.3 % | 4.2 % | 3.5 % | 3.0 % | 3.3 % | ||
| Profit for the period | 2,791 | 1,245 | 124.2 % | 4,593 | 1,057 | 334.5 % | 3,260 |
| Order backlog | 185,614 | 172,299 | 7.7 % | 181,301 | |||
| Free cash flow | 6,610 | 90 | 7244.8 % | 10,357 | 7,160 | 44.7 % | 8,910 |
| Cash conversion, % | 146.2 % | 2.5 % | 125.9 % | 102.1 % | 84.8 % | ||
| Net interest-bearing debt | 11,667 | 19,441 | -40.0 % | 17,407 | |||
| Gearing, % | 44.6 % | 88.6 % | 70.9 % | ||||
| Number of personnel at period end | 931 | 928 | 0.3 % | 890 | |||
| Earnings per share, undiluted (EUR) | 0.37 | 0.25 | 48.2 % | 0.60 | 0.23 | 161.0 % | 0.61 |
- New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) are effective for the financial year 2016. Consti presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q12016, 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".
CONSTI
CEO's Review
Net sales on par with last year
"Demand for renovation construction and technical building services continued on a fairly good level during the third quarter of the year. Order intake in July-September was 6.3 percent higher than in the corresponding period last year. Thus our order backlog also developed positively. Our order backlog in euros at the end of the reporting period was 185.6 (172.3) million euro. Our net sales for the third quarter of the year grew 0.3 percent and was 70.6 million euro. Net sales grew in Technical Building Services and Renovation Contracting, but decreased in Building Facades. Net sales in July-September was affected by greater than anticipated challenges in obtaining personnel resources, which in turn reflected on the progress and start of projects and also somewhat on attaining new projects. Thus our order backlog – which had strengthened during the beginning of the year – was not realised as net sales at the anticipated pace. Nevertheless, our profitability improved during the quarter. Our adjusted EBIT was 3.7 million euro, which is 5.3 percent of the net sales, while corresponding figures from the third quarter of 2015 were 3.2 million euro and 4.5 percent of the net sales.
Market situation remained at a fairly good level
In general, the market situation in renovation construction and technical building services continued to be fairly good. The increase in new construction has, however, in our opinion decreased the amount of large-scale office premise renovation projects. Pipeline renovations and façade renovations of residential buildings came to the fore in orders we obtained during the quarter, as did service-work in general. All in all, the order intake during July-September grew compared to last year, but the orders will by the large be carried out in 2017.
Internally, personnel issues were emphasised
We need more competent personnel to support growth and thus we have increased our investments into for example personnel recruitment, training, and career paths. In addition, we are aiming at strengthening Consti's employer image, as the fight for competent personnel is fierce in our industry.
Outlook for the rest of the year
Based on our current market and business outlook, we believe that the demand for renovation construction and technical building services will remain at a fairly good level during the rest of the year as well. The fourth quarter's net sales will be affected by greater than anticipated challenges in obtaining personnel resources, and also in part by project schedules moving forward. Consequently, we adjusted our guidance on the Group net sales outlook slightly downwards. We estimate that net sales for 2016 will grow compared to 2015", says Consti Group Plc's CEO Marko Holopainen.
Operating environment
The Confederation of Finnish Construction Industries RT (CFCI) estimates in its October review of business conditions that housing construction will grow in 2016 by approximately 8 percent compared to the previous year. Renovation construction is estimated to grow 1.5 percent and new construction is estimated to grow 14 percent from last year.
CFCI expects renovation construction growth to be more moderate than in previous years as the increase in new construction is decreasing activity in renovation construction. Although
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renovation construction growth is slowing down somewhat, the renovation needs of existing building stock are believed to sustain steady growth in to the next decade.
The Finnish Association of HPAC Technical Contractors estimated in their October review that business conditions for technical building services have improved, especially in new construction. Approximately 75 percent of HPAC-contractors felt that the economic conditions were at least satisfactory. In renovation construction about 86 percent of respondents said that conditions were at least satisfactory, as did 91 percent of respondents from maintenance services.
The relative portion of renovations in the Finnish building market has grown during the past decade, and it is now already larger than the new construction market. The Confederation of Finnish Construction Industries RT (CFCI) estimates that renovation amounted to approximately 54 percent of the building market's total value in 2015. The general economic situation has a significantly smaller impact on renovation construction and technical building services than it does on the new construction market.
The ageing building stock particularly increases the demand for renovation construction. As buildings age, they require more technical renovations such as pipeline and façade renovations. At the moment mainly buildings from the 1960s and an increasing number of buildings from the considerably larger building stock of the 1970s are being renovated in Finland. In renovation construction the largest growth during the next decade is expected to come from residential buildings in large cities. In housing association renovations approximately one third of the renovations are pipelines, one third façades and the rest other structures.
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 ageing populations' need for barrier-free buildings.
There are currently a great number of buildings in Finland which would benefit from renovations modifying their use to match current needs. Such renovations would improve both the buildings' usability and profitability. Typical modifications of buildings include the altering of old office buildings and industrial buildings in growth centres into hotels, apartments and assisted living facilities. Modifications of the use of buildings are a central part of Consti's services.
Renovation construction markets are concentrating on growth areas, akin to new construction. Necessary technical repairs in declining suburbs and less populated areas are often economically unviable.
The renovation market is very fragmented in Finland. Large construction companies focus on new building and the field of renovation has typically consisted of several small companies that usually focus on only one segment of renovation.
Measured in net sales, Consti is one of Finland's leading companies in renovation and technical building services.
Group structure
Consti is one of Finland's leading companies focused on renovation and technical building services. Consti has a comprehensive service offering covering technical building services, residential pipeline renovation, renovation contracting, building façade repair and maintenance, and other renovation and technical services for demanding residential, commercial and public properties. Consti has focused its operations especially to the Greater Helsinki area and the Tampere region of Pirkanmaa. The company also has operations in Turku, Lahti and Oulu.
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Consti has three business areas: Technical Building Services, Building Façades, and Renovation Contracting. All these also contain Servicing and maintenance services which is not reported as its own business area. Consti however reports its Service operations' net sales per financial year. Consti's Service business includes service contracting as well as technical repair and maintenance services to contract customers.
Business areas are reported in one segment. In addition, Consti reports sales, order backlog and order intake for each business area.
The Group's parent company is Consti Group Plc. The business areas operate in three subsidiaries completely owned by the parent company: Consti Talotekniikka Oy (Technical Building Services), Consti Julkisivut Oy (Building Façades) and Consti Korjausurakointi Oy (Renovation Contracting). Eleta Talotekniikka Oy was acquired in January 2016. The merger with Consti Technical Building Services was completed in the end of May 2016.
Long term goals
Consti's goal is to grow in the company's current market areas and to broaden the offering of Consti's full services to Finland's growth centres. The company is seeking to accomplish both organic growth and growth through acquisitions.
The company's long term financial goals are to achieve:
- Annual average net sales growth of at least 10 percent
- Adjusted EBIT margin of over 5 percent
- Cash conversion ratio of over 90 percent
- Net debt and adjusted EBITDA rate of under 2.5 whilst maintaining an efficient capital structure
Sales, result and order backlog
7-9/2016
Consti Group's July-September net sales grew 0.3 percent and was 70.6 (70.4) million euro. Organic growth for July-September was -0.7 percent. Technical Building Services sales were 25.7 (25.1) million euro, Renovation Contracting sales were 19.6 (17.9) and Building Façades sales were 27.0 (28.1) million euro.
Net sales continued to grow in Technical Building Services and Renovation Contracting, but declined in Building Façades. Net sales in July-September were affected by greater than anticipated challenges in obtaining personnel resources, which in turn reflected on the progress and start of projects in part of the businesses. Technical Building Services net sales grew 2.2 percent. Technical Building Services net sales grew well in service operations. Renovation Contracting net sales grew 9.9 percent. Renovation Contracting net sales growth continued in the Greater Helsinki area and Turku area. Building Façades net sales fell 4.1 percent due to a decrease in net sales in one of its areas, rental apartment buildings, compared to the corresponding fiscal period last year.
Operating profit (EBIT) for July-September grew from last year and was 3.7 (3.0) million euro. Operating profit from net sales was 5.3 (4.2) percent. The adjusted EBIT for Q3 before items affecting comparability was 3.7 (3.2) million euro. The adjusted EBIT margin before items affecting comparability was 5.3 (4.5) percent. Costs affecting comparability during the
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comparison period totalled 0.2 million euro, relating to planning structural arrangements and adopting IFRS standards. The operating profit and operating profit margin fluctuation are affected by the Group's progress in projects that generate revenue according to the percentage-of-completion method, the starting of new projects and the development of demand for services.
The order backlog at the end of the reporting period grew 7.7 percent and was 185.6 (172.3) million euro. The order backlog increased in Technical Building Services by 6.2 percent, and in Building Façades 19.1 percent, but decreased 3.8 percent in Renovation Contracting. Order intake value during July-September grew 6.3 percent. Order intake increased in Technical Building Services by 15.6 percent, and in Building Façades by 39.0 percent, but decreased by 49.0 percent in Renovation Contracting. In Renovation Contracting new order intake was affected by the decrease of large office premise renovations measured up to the comparison period.
1-9/2016
Consti Group's January-September net sales grew 3.0 percent and was 186.7 (181.2) million euro. In January-September organic growth was 1.8 percent. Technical Building Services net sales were 77.4 (72.3) million euro, Renovation Contracting net sales were 53.6 (48.0) and Building Façades net sales were 59.5 (64.0) million euro.
Net sales continued to grow in Technical Building Services and Renovation Contracting, but declined in Building Façades. Technical Building Services net sales grew 7.1 percent. Technical Building Services net sales grew well in service operations and in business premise services. Renovation Contracting net sales grew 11.7 percent. Growth was primarily due to the good order intake from the previous year and the order backlog. Renovation Contracting net sales continued growing in the Greater Helsinki area and Turku area. Building Façades net sales fell 7.1 percent due to a decrease in net sales in one of its areas, rental apartment buildings, compared to the corresponding fiscal period last year.
Operating profit (EBIT) for January-September grew from last year and was 6.5 (5.4) million euro. Operating profit from net sales was 3.5 (3.0) percent. Costs affecting comparability during the reporting period totalled 0.02 (0.5) million euro, relating to the IPO. The January-September adjusted EBIT before items affecting comparability was 6.6 (5.9) million euro. The adjusted EBIT margin before items affecting comparability was 3.5 (3.2) percent.
The order backlog at the end of the reporting period grew 2.4 percent compared to the end of the previous financial year and was 185.6 million euro. The order intake value during January-September grew 4.8 percent. Orders increased by 29.3 percent in Technical Building Services and 23.2 percent in Building Façades but decreased 47.1 percent in Renovation Contracting.
| ITEMS AFFECTING COMPARABILITY (EUR 1,000) | 1-9/2016 | 1-9/2015 | 1-12/2015 |
|---|---|---|---|
| Planning of structural arrangements | -323 | -385 | |
| Adoption of IFRS standards | -202 | -353 | |
| Planning and execution of IPO | -23 | 0 | -1,368 |
| Items affecting comparability, total | -23 | -525 | -2,106 |
Investments and business combinations
Investments into intangible and tangible assets in July-September were 0.3 (0.8) million euro,
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which is 0.5 (1.1) percent of the company's net sales. Investments into tangible and intangible assets in January-September were 1.4 (2.2) million euro, which is 0.7 (1.2) percent of net sales. The largest investments were made into property, plant and equipment which primarily include machinery and equipment purchases.
There were no investments related to business combinations during July-September. In January-September investments related to business combinations were 0.4 (0.0) million euro. In January 2016 Consti signed a deal of the purchase of the entire share base of Eleta Talotekniikka Oy. Eleta is based in Espoo and established in 1987. The company specialises in technical building services and its annual net sales is approximately 2 million euro. In the deal, all Eleta employees transferred to work for Consti. The deal further enhances Consti's strong expertise in technical building services in the Helsinki Metropolitan Area and supports the company's drive to increase its maintenance and energy know-how.
Cash flow and financial position
The operating cash flow in July-September before financing items and taxes was 7.0 (0.9) million euro. Free cash flow, i.e. operating cash flow before financing items and taxes less investments in intangible and tangible assets was 6.6 (0.09) million euro. The cash flow ratio in July-September was 146.2 (2.5) percent. Cash flow was positively affected by the improvement of operating result. In addition, released cash flow from working capital was larger than in the comparison period.
The January-September operating cash flow before financing items and taxes was 11.8 (9.4) million euro. Free cash flow, i.e. operating cash flow before financing items and taxes less investments in intangible and tangible assets was 10.4 (7.2) million euro. The cash flow ratio in January-September was 125.9 (102.1) percent. The cash flow was positively affected by the improvement of operating result. Released cash flow from working capital was larger than in the comparison period.
Consti Group's cash and cash equivalents on September 30th 2016 were 9.6 (2.1) million euro. In addition, the company has undrawn revolving credit facilities amounting to 5.0 million. The Group's interest bearing debts were 21.3 (21.5) million euro. External loans are subject to two financial covenants based on the ratio of the Group's net debt to adjusted EBITDA and gearing. On the balance sheet date, the interest bearing net debt was 11.7 (19.4) million euro and the gearing ratio 44.6 (88.6) percent.
The balance sheet total on September 30th 2016 was 97.1 (88.5) million euro. At the end of the reporting period tangible assets in the balance sheet were 4.9 (5.4) million euro. Equity ratio was 32.5 (30.6) percent. Rental liabilities associated with off-balance sheet operational leasing agreements totalled 4.5 (4.1) million euro on September 30th 2016.
In September 2015 the Company changed its capital structure and refinanced its indebtedness. The change in capital structure and refinancing of indebtedness decreased financing costs in 2015. The impact is seen especially in 2016.
| MATURITY DISTRIBUTION OF INTEREST-BEARING DEBT (EUR 1.000) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021- | Total |
|---|---|---|---|---|---|---|---|
| Bank loans | 70 | 280 | 280 | 280 | 20,210 | 0 | 21,120 |
| Finance lease liabilities | 26 | 69 | 36 | 18 | 0 | 0 | 149 |
| Other interest-bearing liabilities | 133 | 454 | 320 | 180 | 28 | 0 | 1,115 |
| Total | 229 | 803 | 636 | 478 | 20,238 | 0 | 22,384 |
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Personnel
Consti Group had 931 (928) employees at the end of the reporting period. The average employee count during January-September was 931 (914).
At the end of the reporting period 512 (522) employees worked in Technical Building Services, 162 (164) in Renovation Contracting and 248 (234) in the Building Façades business area. The parent company employed 9 (8) people.
| PERSONNEL BY SEGMENT AT PERIOD END | 9/2016 | 9/2015 | 12/2015 |
|---|---|---|---|
| Technical Building Services | 512 | 522 | 509 |
| Renovation Contracting | 162 | 164 | 164 |
| Building Facades | 248 | 234 | 209 |
| Parent company | 9 | 8 | 8 |
| Total Group | 931 | 928 | 890 |
Management Team
Consti Group Plc's Management Team at the end of the reporting period consisted of CEO Marko Holopainen and the following persons: Esa Korkeela, CFO; Risto Kivi, Consti Julkisivut Oy's CEO; Jukka Mäkinen, Consti Korjausurakointi Oy's CEO; Pekka Pöykkö, Consti Talotekniikka Oy's CEO, Hannu Kimiläinen, Consti Service Business Director; Markku Kalevo, Consti Julkisivut Oy's Bid and Sales Director; Pirkka Lähteinen, Consti Korjausurakointi Oy's Regional Director and Juha Salminen, CDO.
Important events during the reporting period
Consti Group Plc announced on 4 January 2016 that it is acquiring Eleta Talotekniikka Oy, a company specialising in building automation services. Eleta is based in Espoo and established in 1987. The company specialises in technical building services and its annual net sales is approximately EUR 2 million. In the deal, all Eleta employees transferred to work for Consti. The deal further enhances Consti's strong expertise in technical building services in the Helsinki Metropolitan Area and supports the company's drive to increase its maintenance and energy know-how.
Consti Group Plc announced Danske Bank's actions to stabilise the share price on 8 January 2016 and its use of the over-allotment option relating to Consti Group Plc's IPO to Helsinki Stock Exchange.
Consti Group Plc received an announcement from Intera Fund I Ky ("Intera") on 11 January 2016, in accordance with the Finnish Securities Market Act Chapter 9, Section 10. According to the announcement, the total number of Consti shares and votes owned by Intera decreased below fifteen (15) percent of the share capital of Consti on 8 January 2016.
Consti Group Plc received an announcement from Danske Bank A/S ("Danske") on 10 March 2016, in accordance with the Finnish Securities Market Act Chapter 9, Section 10. According to the announcement, the total number of Consti shares and votes owned by Danske's funds and Pensionsforsikringsselskabet Danica A/S increased above five (5) percent of the share capital of Consti on 9 March 2016.
Consti Group Plc received an announcement from Intera Fund I Ky ("Intera") on June 14th 2016, in accordance with the Finnish Securities Market Act Chapter 9, Section 10. According to the
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announcement, the total number of Consti shares and votes owned by Intera decreased below ten (10) per cent of the share capital of Consti on 13 June 2016.
The Annual General Meeting 2016 and Board authorisations
The Annual General Meeting of Shareholders of Consti Group Plc held on 6 April 2016 adopted the Financial Statements and discharged the Members of the Board of Directors and the CEO from liability for the financial year 1 January - 31 December 2015. The Annual General Meeting resolved that dividend of EUR 0.39 per share for the financial year 2015 is paid.
The Annual General Meeting resolved that the Board of Directors consists of seven members. The current members of the Board of Directors, Tapio Hakakari, Antti Korkeela, Erkki Norvio, Janne Näränen, Niina Rajakoski, Petri Rignell and Pekka Salokangas were re-elected to the Board of Directors for the following term of office.
Authorised Public Accounting firm Ernst & Young Ltd was elected as the Auditor of the Company and Mikko Rytilahti, Authorised Public Accountant, will act as the Principal Auditor.
It was resolved that the annual remuneration of the members of the Board of Directors is paid as follows: The Chairman of the Board of Directors is paid EUR 30,000 and members of the Board of Directors are each paid EUR 15,000. It was resolved that the travel expenses of the members of the Board of Directors arising from participation in the Board meetings are compensated according to invoice. It was resolved that the remuneration for the Auditor shall be paid according to the Auditor's reasonable invoice.
The Board of Directors was authorised to resolve on the repurchase of a maximum of 471,000 shares in the Company in one or several tranches by using funds in the unrestricted shareholders' equity. The shares may be repurchased for the price formed at the moment of purchase on public trading or for the price otherwise formed on the markets. The own shares may be purchased by deviating from the shareholders' pre-emptive rights (directed repurchase). The shares may be repurchased in order to, for example, carry out the Company's share-based incentive plan. The Board of Directors is authorized to decide on how repurchase is carried out and on all other matters related to the repurchase of shares.
The authorization shall replace previous unused authorizations of the Board of Directors to resolve on the repurchase of the Company's shares. The authorization shall be valid until the closing of the next Annual General Meeting, however, no longer than until 30 June 2017.
The Board of Directors was authorised to resolve on the share issue and the issuance of special rights entitling to shares as referred to in Chapter 10 Section 1 of the Companies Act in one or several tranches, either against payment or without payment. The aggregate amount of shares to be issued, including the shares to be received based on special rights, shall not exceed 780,000 shares. The Board of the Directors may resolve to issue either new shares or to transfer treasury shares potentially held by the Company.
The Board of Directors is authorized to decide on all other matters related to the issuance of shares and special rights, including on a deviation from the shareholders' pre-emptive rights. The authorization is used, for example, to carry out Company's share-based incentive plan or for other purposes resolved by the Board of Directors. The Board of Directors is authorized to decide on all other matters related to the issuance of shares and special rights entitling to shares.
The authorization replaces previous authorizations of the Board of Directors to resolve on the issuance of shares and issuance of other special rights entitling to shares. The authorization shall be valid until the closing of the next Annual General Meeting, however, no longer than until
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30 June 2017.
Organising Meeting of the Board of Directors
The Board of Directors elected by the Annual General Meeting of Shareholders of Consti Group Plc on 6 April 2016, held its organising meeting and elected Tapio Hakakari as the Chairman of the Board.
The Board of Directors appointed Tapio Hakakari, Janne Näränen and Petri Rignell as members of the Nomination and Remuneration Committee. The Board of Directors has not established other committees.
Janne Näränen resigned on his own initiative from Consti Group Plc's Nomination and Remuneration committee on August 16th 2016. In the Board meeting on August 16th Pekka Salokangas was appointed as member of the Nomination and Remuneration committee in place of Janne Näränen.
Shares and share capital
Consti Group Plc's share capital on September 30th 2016 was 80,000 euro and the number of shares 7,858,267. Consti Group Plc held 243,500 of these shares. The Company has a single series of shares, and each share entitles its holder to one vote at the General Meeting of the company and to an equal dividend. Consti Group Plc's shares are added into the Book-Entry Securities System.
Trade at Nasdaq Helsinki
Consti Group Plc has been listed in the Helsinki Stock Exchange main list since 15 December 2015. The trade symbol is CONSTI. On the Nordic list Consti Group Plc is classified a small cap company within the Industrials sector. During 1 January – 30 September 2016 Consti Group Plc's lowest share price was 8.90 euro and the highest 17.48 euro. The share's trade volume weighted average price was 11.02 euro. At the close of the stock day on the last trading day of the reporting period September 30th 2016 the share value was 15.55 euro and the Company's market value was 122.2 million euro.
Related-party transactions
There were no significant related-party transactions during the reporting period.
Outlook for 2016
Renovation construction is expected to continue growing in 2016. The Confederation of Finnish Construction Industries RT (CFCI) estimates in its October review of business conditions that housing construction will grow in 2016 by approximately 8 percent compared to the previous year. Renovation construction is estimated to grow 1.5 percent and new construction 14 percent from last year.
CFCI expects renovation construction growth to be more moderate than in previous years as the increase in new construction is decreasing activity in renovation construction. Although renovation construction growth is slowing down somewhat, the renovation needs of existing building stock are believed to sustain steady growth in to the next decade.
The Finnish Association of HPAC Technical Contractors estimated in their October review that business conditions for technical building services have improved especially in new construction. Approximately 75 percent of HPAC-contractors felt that the economic conditions were at least
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satisfactory. In renovation construction about 86 percent of respondents said that conditions were at least satisfactory, as did 91 percent of respondents from maintenance services.
The general economic conditions have a considerably smaller impact on renovation construction and technical building services than on new building.
Consti adjusted its net sales guidance with a stock exchange release on October 26th 2016, in which it stated that the company estimates its net sales to grow compared to 2015. The company previously estimated that "its total annual net sales for 2016 will grow approximately 5-10 percent compared to 2015."
Significant risks and risk management
Consti divides risks to the Company's business into strategic and operative risks, as well as financing risks and risks of injury or damage. Consti's businesses main uncertainties have to do with the Finnish economic situation, which has an impact for example on inhabitants' eagerness to invest and the availability of financing, as well as the success of the Company's growth strategy and related corporate acquisitions, personnel and recruitments. In addition, financing risks come from interest rate, credit and liquidity risks. The Company estimates that no relevant changes have occurred in the Company risks during the fiscal period.
A detailed description of risks related to Consti and its operating environment and business, as well as the Group's risk management are presented in the Board of Directors' Report published in Consti's annual report 2015. Financial risks and their management is described in detail in note 18 to the financial statements "Financial risk management".
Dividend and dividend policy
The Annual General Meeting of Shareholders held on 6 April 2016 resolved that dividend of EUR 0.39 per share for the financial year 2015 is paid. No dividend was paid on own shares held by the Company. The record date for dividend distribution was 8 April 2016, and the dividend was paid on 15 April 2016.
According to the Company dividend policy its goal is to distribute a minimum of 50 percent of the fiscal year's profit as dividend, however taking into consideration the Company's financial position, cash flow and growth opportunities.
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SUMMARY OF FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 1.1. – 30.9.2016
Accounting principles
Consti Group Plc's interim financial report has been prepared for the accounting period of 1.1. – 30.9.2016 according to the IAS 34 Interim Financial reporting principles. Consti has abided by the same accounting principles in its interim financial reporting as in its IFRS financial statements 2015. The information presented in the interim financial reports are not audited. All figures in these accounts have been rounded. Consequently, the sum of individual figures can deviate from the presented sum figure. The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities, and the recognition of income and expenses in the statement of income. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the values given in the interim financial report.
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000) | 7-9/2016 | 7-9/2015 | Change % | 1-9/2016 | 1-9/2015 | Change % | 1-12/2015 |
|---|---|---|---|---|---|---|---|
| Net sales | 70,554 | 70,361 | 0.3 % | 186,735 | 181,212 | 3.0 % | 256,151 |
| Other operating income | 435 | 151 | 187.8 % | 733 | 497 | 47.5 % | 798 |
| Change in inventories of finished goods and work in progress | 0 | 0 | 0 | 0 | 0 | ||
| Materials and services | -49,423 | -50,920 | 2.9 % | -129,067 | -126,850 | -1.7 % | -178,072 |
| Employee benefit expenses | -12,878 | -12,273 | -4.9 % | -38,399 | -36,608 | -4.9 % | -51,574 |
| Depreciation | -792 | -632 | -25.4 % | -1,692 | -1,652 | -2.4 % | -2,093 |
| Other operating expenses | -4,167 | -3,721 | -12.0 % | -11,775 | -11,237 | -4.8 % | -16,796 |
| Operating profit (EBIT) | 3,729 | 2,966 | 25.7 % | 6,535 | 5,362 | 21.9 % | 8,414 |
| Total financial income and expenses | -202 | -1,465 | 86.2 % | -723 | -4,079 | 82.3 % | -4,360 |
| Profit before taxes (EBT) | 3,527 | 1,501 | 135.0 % | 5,812 | 1,283 | 353.0 % | 4,054 |
| Total taxes | -736 | -256 | -187.6 % | -1,220 | -226 | -439.6 % | -794 |
| Profit for the period | 2,791 | 1,245 | 124.2 % | 4,593 | 1,057 | 334.5 % | 3,260 |
| Comprehensive income for the period 1) | 2,791 | 1,245 | 124.2 % | 4,593 | 1,057 | 334.5 % | 3,260 |
| Earnings per share attributable to equity holders of parent company 2) | |||||||
| Earnings per share, undiluted (EUR) | 0.37 | 0.25 | 48.2 % | 0.60 | 0.23 | 161.0 % | 0.61 |
| Earnings per share, diluted (EUR) | 0.37 | 0.25 | 48.2 % | 0.60 | 0.23 | 161.0 % | 0.61 |
1) The group has no other comprehensive income items.
2) Due to a share issue without payment completed in December 2015, the earnings per share (EPS) figures for the previous periods have been adjusted according to IFRS.
Q3 | 11
CONSTI
| CONSOLIDATED BALANCE SHEET
(EUR 1,000) | 30 Sep 2016 | 30 Sep 2015 | Change % | 31 Dec 2015 |
| --- | --- | --- | --- | --- |
| ASSETS | | | | |
| | | | | |
| Non-current assets | | | | |
| Property, plant and equipment | 4,946 | 5,355 | -7.6 % | 5,354 |
| Goodwill | 43,743 | 43,484 | 0.6 % | 43,484 |
| Other intangible assets | 363 | 488 | -25.6 % | 425 |
| Available-for-sale financial assets | 8 | 65 | -88.1 % | 8 |
| Long-term receivables | 0 | 0 | | 0 |
| Deferred tax receivables | 74 | 813 | -90.9 % | 430 |
| Total non-current assets | 49,133 | 50,205 | -2.1 % | 49,701 |
| Current assets | | | | |
| Inventories | 483 | 484 | -0.2 % | 507 |
| Trade and other receivables | 37,916 | 35,746 | 6.1 % | 36,415 |
| Cash and cash equivalents | 9,599 | 2,059 | 366.2 % | 4,070 |
| Total current assets | 47,998 | 38,289 | 25.4 % | 40,991 |
| | | | | |
| TOTAL ASSETS | 97,132 | 88,494 | 9.8 % | 90,692 |
| | | | | |
| EQUITY AND LIABILITIES | | | | |
| | | | | |
| Equity | 26,161 | 21,942 | 19.2 % | 24,538 |
| | | | | |
| Non-current liabilities | | | | |
| Interest-bearing liabilities | 20,699 | 18,810 | 10.0 % | 20,864 |
| Total non-current liabilities | 20,699 | 18,810 | 10.0 % | 20,864 |
| Current liabilities | | | | |
| Trade and other payables | 48,538 | 43,834 | 10.7 % | 43,389 |
| Interest-bearing liabilities | 566 | 2,690 | -78.9 % | 613 |
| Provisions | 1,167 | 1,218 | -4.2 % | 1,288 |
| Total current liabilities | 50,271 | 47,742 | 5.3 % | 45,290 |
| | | | | |
| TOTAL EQUITY AND LIABILITIES | 97,132 | 88,494 | 9.8 % | 90,692 |
Q3 | 12
CONSTI
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000) | Equity attributable to owners of the parent | |||||
|---|---|---|---|---|---|---|
| Share capital | Reserve for invested non-restricted equity | Treasury shares | Retained earnings | Total | Total equity | |
| Equity on 1 January 2016 | 80 | 27,318 | -456 | -2,404 | 24,458 | 24,538 |
| Total comprehensive income | 4,593 | 4,593 | 4,593 | |||
| Share issue | 0 | 0 | ||||
| Dividend distribution | -2,970 | -2,970 | -2,970 | |||
| Purchase of own shares | 0 | 0 | ||||
| Transactions with shareholders, total | 0 | 0 | 0 | -2,970 | -2,970 | -2,970 |
| Equity on 30 September 2016 | 80 | 27,318 | -456 | -781 | 26,081 | 26,161 |
| Equity on 1 January 2015 | 3 | 6,431 | -305 | -5,664 | 462 | 465 |
| --- | --- | --- | --- | --- | --- | --- |
| Total comprehensive income | 1,057 | 1,057 | 1,057 | |||
| Share issue | 20,571 | 20,571 | 20,571 | |||
| Purchase of own shares | -151 | -151 | -151 | |||
| Transactions with shareholders, total | 0 | 20,571 | -151 | 0 | 20,420 | 20,420 |
| Equity on 30 September 2015 | 3 | 27,002 | -456 | -4,607 | 21,939 | 21,942 |
| Equity on 1 January 2015 | 3 | 6,431 | -305 | -5,664 | 462 | 465 |
| --- | --- | --- | --- | --- | --- | --- |
| Total comprehensive income | 3,260 | 3,260 | 3,260 | |||
| Share issue | 77 | 20,887 | 20,887 | 20,964 | ||
| Purchase of own shares | -151 | -151 | -151 | |||
| Transactions with shareholders, total | 77 | 20,887 | -151 | 0 | 20,736 | 20,813 |
| Equity on 31 December 2015 | 80 | 27,318 | -456 | -2,404 | 24,458 | 24,538 |
Q3 | 13
CONSTI
| CONSOLIDATED STATEMENT OF CASH FLOWS
(EUR 1,000) | 7-9/2016 | 7-9/2015 | 1-9/2016 | 1-9/2015 | 1-12/2015 |
| --- | --- | --- | --- | --- | --- |
| Cash flows from operating activities | | | | | |
| Operating profit | 3,729 | 2,966 | 6,535 | 5,362 | 8,414 |
| Adjustments: | | | | | |
| Depreciation | 792 | 632 | 1,692 | 1,652 | 2,093 |
| Other adjustments | -12 | -23 | -121 | -52 | -116 |
| Change in working capital | 2,445 | -2,718 | 3,645 | 2,388 | 1,190 |
| Operating cash flow before financial and tax items | 6,955 | 857 | 11,751 | 9,350 | 11,581 |
| Financial items, net | -202 | -673 | -723 | -1,482 | -1,762 |
| Taxes paid | -301 | -10 | -910 | -13 | -66 |
| Net cash flow from operating activities | 6,451 | 174 | 10,118 | 7,855 | 9,753 |
| | | | | | |
| Cash flows from investing activities | | | | | |
| Acquisition of subsidiaries and business operations, net of cash acquired | 0 | 0 | -410 | 0 | 0 |
| Investments in tangible and intangible assets | -344 | -767 | -1,394 | -2,190 | -2,671 |
| Proceeds from sale of property, plant and equipment | 8 | 1,131 | 436 | 1,307 | 1,475 |
| Proceeds from sale of available-for-sale financial assets | 0 | 0 | 5 | 0 | 57 |
| Net cash flow from investing activities | -337 | 364 | -1,364 | -883 | -1,139 |
| | | | | | |
| Cash flows from financing activities | | | | | |
| Purchase of own shares | 0 | -9 | 0 | -151 | -151 |
| Share issue | 0 | 288 | 0 | 536 | 536 |
| Other changes in equity | 0 | 0 | -2,970 | -1 | 392 |
| Change in interest-bearing liabilities | -241 | -10,484 | -254 | -15,621 | -15,645 |
| Net cash flow from financing activities | -241 | -10,205 | -3,224 | -15,237 | -14,868 |
| | | | | | |
| Change in cash and cash equivalents | 5,873 | -9,667 | 5,530 | -8,265 | -6,254 |
| Cash and cash equivalents at period start | 3,726 | 11,726 | 4,070 | 10,324 | 10,324 |
| Cash and cash equivalents at period end | 9,599 | 2,059 | 9,599 | 2,059 | 4,070 |
Q3 | 14
CONSTI
| KEY FIGURES (EUR 1,000) | 9/2016 | 9/2015 | 12/2015 |
|---|---|---|---|
| INCOME STATEMENT | |||
| Net sales | 186,735 | 181,212 | 256,151 |
| Adjusted EBITDA | 8,250 | 7,539 | 12,613 |
| Adjusted EBITDA margin, % | 4.4 % | 4.2 % | 4.9 % |
| EBITDA | 8,227 | 7,014 | 10,507 |
| EBITDA margin, % | 4.4 % | 3.9 % | 4.1 % |
| Adjusted operating profit (EBIT) | 6,558 | 5,887 | 10,520 |
| Adjusted operating profit (EBIT) margin, % | 3.5 % | 3.2 % | 4.1 % |
| Operating profit (EBIT) | 6,535 | 5,362 | 8,414 |
| Operating profit margin, % | 3.5 % | 3.0 % | 3.3 % |
| Profit before taxes (EBT) | 5,812 | 1,283 | 4,054 |
| as % of sales | 3.1 % | 0.7 % | 1.6 % |
| Profit for the period | 4,593 | 1,057 | 3,260 |
| as % of sales | 2.5 % | 0.6 % | 1.3 % |
| OTHER KEY FIGURES | |||
| Balance sheet total | 97,132 | 88,494 | 90,692 |
| Net interest-bearing debt | 11,667 | 19,441 | 17,407 |
| Equity ratio, % | 32.5 % | 30.6 % | 31.4 % |
| Gearing, % | 44.6 % | 88.6 % | 70.9 % |
| Free cash flow | 10,357 | 7,160 | 8,910 |
| Cash conversion, % | 125.9 % | 102.1 % | 84.8 % |
| Order backlog | 185,614 | 172,299 | 181,301 |
| Order intake | 156,996 | 149,865 | 213,504 |
| Average number of personnel | 931 | 914 | 910 |
| Number of personnel at period end | 931 | 928 | 890 |
| SHARE RELATED KEY FIGURES | |||
| Earnings per share, undiluted (EUR) | 0.60 | 0.23 | 0.61 |
| Earnings per share, diluted (EUR) | 0.60 | 0.23 | 0.61 |
| Shareholders' equity per share (EUR) | 3.44 | 2.90 | 3.22 |
| Number of shares, end of period | 7,858,267 | 7,812,300 | 7,858,267 |
| Number of outstanding shares, end of period | 7,614,767 | 7,568,800 | 7,614,767 |
| Average number of shares | 7,614,767 | 4,573,763 | 5,329,936 |
Q3 | 15
CONSTI
Calculation of key figures
| EBITDA = | Operating profit (EBIT) + depreciation, amortisation and impairment |
|---|---|
| Net interest-bearing debt = | Interest-bearing liabilities - cash and cash equivalents |
| Equity ratio (%) = | Equity |
| Total assets - advances received | |
| X 100 | |
| Gearing (%) = | Interest-bearing liabilities - cash and cash equivalents |
| X 100 | |
| Average number of personnel = | The average number of personnel at the end of each calendar month during the period |
| Number of personnel at period end = | Number of personnel at the end of period |
| Free cash flow = | Net cash flow from operating activities before financial and tax items - investments in intangible and tangible assets |
| Cash conversion (%) = | Free cash flow |
| EBITDA | |
| X 100 | |
| Earnings per share = | Profit attributable to equity holders of the parent company |
| Weighted average number of shares outstanding during the period | |
| X 100 | |
| Adjusted EBITDA = | EBITDA before items affecting comparability (IAC) |
| Adjusted operating profit (EBIT) = | Operating profit (EBIT) before items affecting comparability (IAC) |
| Order backlog = | At the end of the period the unrecognised amount of construction contracts recognised in accordance with the percentage of completion method, including not started ordered construction contracts, long-term service agreements and the part which has not been invoiced in ordered invoice based projects |
| Order intake = | Orders of construction contracts, long-term service agreements and invoice based projects during the period |
Q3 | 16
CONSTI
Business areas
During the reporting period Consti Group consisted of three domestic operational segments that support each other: Technical Building Services, Renovation Contracting and Building Façades. Due to the similarity of Consti Group's management structure, the operations and business segments these operational segments are combined for the IFRS 8 segment reporting into one reportable segment, which also includes Group services and other items.
| NET SALES BY SEGMENT (EUR 1,000) | 7-9/2016 | 7-9/2015 | Change % | 1-9/2016 | 1-9/2015 | Change % | 1-12/2015 |
|---|---|---|---|---|---|---|---|
| Technical Building Services | 25,663 | 25,122 | 2.2 % | 77,396 | 72,280 | 7.1 % | 102,578 |
| Renovation Contracting | 19,642 | 17,879 | 9.9 % | 53,639 | 48,016 | 11.7 % | 68,697 |
| Building Facades | 26,956 | 28,104 | -4.1 % | 59,503 | 64,028 | -7.1 % | 89,221 |
| Parent company and elimin. | -1,706 | -744 | -129.3 % | -3,803 | -3,112 | -22.2 % | -4,345 |
| Total Net sales | 70,554 | 70,361 | 0.3 % | 186,735 | 181,212 | 3.0 % | 256,151 |
| ORDER INTAKE BY SEGMENT (EUR 1,000) | 7-9/2016 | 7-9/2015 | Change % | 1-9/2016 | 1-9/2015 | Change % | 1-12/2015 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Technical Building Services | 14,223 | 12,304 | 15.6 % | 65,985 | 51,013 | 29.3 % | 72,363 |
| Renovation Contracting | 3,508 | 6,882 | -49.0 % | 27,920 | 52,744 | -47.1 % | 80,482 |
| Building Facades | 13,346 | 9,601 | 39.0 % | 66,177 | 53,736 | 23.2 % | 71,744 |
| Parent company and elimin. | -791 | -285 | -177.5 % | -3,066 | -7,628 | 59.8 % | -11,085 |
| Total Order intake | 30,285 | 28,502 | 6.3 % | 156,996 | 149,865 | 4.8 % | 213,504 |
| ORDER BACKLOG BY SEGMENT (EUR 1,000) | 7-9/2016 | 7-9/2015 | Change % | 1-9/2016 | 1-9/2015 | Change % | 1-12/2015 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Technical Building Services | 70,600 | 66,500 | 6.2 % | 70,600 | 66,500 | 6.2 % | 69,200 |
| Renovation Contracting | 46,147 | 47,960 | -3.8 % | 46,147 | 47,960 | -3.8 % | 57,100 |
| Building Facades | 68,867 | 57,839 | 19.1 % | 68,867 | 57,839 | 19.1 % | 55,001 |
| Total Order backlog | 185,614 | 172,299 | 7.7 % | 185,614 | 172,299 | 7.7 % | 181,301 |
Reconciliation between operating profit (EBIT) reported in accordance to IFRS and EBIT before items affecting comparability (adjusted EBIT) commented in this financial review
The income statement under IFRS has been adjusted by the following items when reporting and commenting EBITDA before items affecting comparability (adjusted EBITDA) and EBIT before items affecting comparability (adjusted EBIT) in this interim financial report:
Q3 | 17
CONSTI
| 1-9/2016 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
|---|---|---|---|
| Net sales | 186,735 | 186,735 | |
| Other operating income | 733 | 733 | |
| Change in inventories of finished goods and work in progress | 0 | 0 | |
| Materials and services | -129,067 | -129,067 | |
| Employee benefit expenses | -38,399 | -38,399 | |
| Other operating expenses | -11,775 | -23 | -11,752 |
| EBITDA | 8,227 | -23 | 8,250 |
| Depreciation | -1,692 | -1,692 | |
| Operating profit (EBIT) | 6,535 | -23 | 6,558 |
| 1-9/2015 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
| --- | --- | --- | --- |
| Net sales | 181,212 | 181,212 | |
| Other operating income | 497 | 497 | |
| Change in inventories of finished goods and work in progress | 0 | 0 | |
| Materials and services | -126,850 | -126,850 | |
| Employee benefit expenses | -36,608 | -36,608 | |
| Other operating expenses | -11,237 | -525 | -10,712 |
| EBITDA | 7,014 | -525 | 7,539 |
| Depreciation | -1,652 | -1,652 | |
| Operating profit (EBIT) | 5,362 | -525 | 5,887 |
| 1-12/2015 (EUR 1,000) | IFRS | IAC | Income statement before IAC |
| --- | --- | --- | --- |
| Net sales | 256,151 | 256,151 | |
| Other operating income | 798 | 798 | |
| Change in inventories of finished goods and work in progress | 0 | 0 | |
| Materials and services | -178,072 | -178,072 | |
| Employee benefit expenses | -51,574 | -103 | -51,471 |
| Other operating expenses | -16,796 | -2,002 | -14,794 |
| EBITDA | 10,507 | -2,106 | 12,613 |
| Depreciation | -2,093 | -2,093 | |
| Operating profit (EBIT) | 8,414 | -2,106 | 10,520 |
Q3 | 18
CONSTI
| GROUP LIABILITIES (EUR 1,000) | 9/2016 | 9/2015 | 12/2015 |
|---|---|---|---|
| Liabilities given on behalf of the Group | |||
| Mortgage deeds | 236,191 | 0 | |
| Other liabilities | |||
| Leasing and rental liabilities | 4,458 | 4,133 | 4,380 |
Business combinations
Consti made the following acquisitions during the January-September 2016 period:
| ACQUIRED BUSINESS | Country | Type | Month of acquisition | Acquired share | No. of employees | Estimated annual net sales (€m) |
|---|---|---|---|---|---|---|
| Building automation, Helsinki | Finland | Share deal | January | 100 % | 18 | 2 |
Acquired assets and liabilities
Fair values of the identified assets and liabilities of the businesses acquired in 2016, after their combination:
Fair value, EUR 1,000
| Assets | |
|---|---|
| Property, plant and equipment | 43 |
| Intangible assets | 100 |
| Cash and cash equivalents | 122 |
| Inventories | 58 |
| Trade and other receivables | 244 |
| Available-for-sale financial assets | 5 |
| Total assets | 572 |
| Liabilities | |
| Trade and other payables | 238 |
| Interest-bearing liabilities | 42 |
| Deferred tax liabilities | 18 |
| Total liabilities | 298 |
| Fair value of identified net assets, total | 274 |
| Goodwill arising from acquisitions | 259 |
| Amount of consideration transferred | 532 |
The goodwill recognised on the acquisition is attributable to the special expertise transferred with the company. The transaction costs arising from the acquisition, totalling EUR 48 thousand have been recognised as expenses and are included under administrative expenses.
Q3 | 19
CONSTI
Largest shareholders
| 10 LARGEST SHAREHOLDERS
30 September 2016 | | Number of shares | % of shares and voting rights |
| --- | --- | --- | --- |
| 1 | Keskinäinen Eläkevakuutusyhtiö Etera | 475,000 | 6.04 % |
| 2 | Esa Korkeela | 399,600 | 5.09 % |
| 3 | Keva | 388,000 | 4.94 % |
| 4 | Risto Kivi | 375,300 | 4.78 % |
| 5 | Keskinäinen Eläkevakuutusyhtiö Ilmarinen | 311,000 | 3.96 % |
| 6 | Markku Kalevo | 296,900 | 3.78 % |
| 7 | Antti Korkeela | 289,842 | 3.69 % |
| 8 | Sijoitusrahasto Danske Invest Suomi Yhteisöosake | 268,268 | 3.41 % |
| 9 | Consti Yhtiöt Oyj | 243,500 | 3.10 % |
| 10 | Fondita Nordic Micro Cap Placeringsfond | 242,000 | 3.08 % |
| Ten largest owners, total | | 3,289,410 | 41.86 % |
| Nominee registered | | 1,313,729 | 16.72 % |
| Others | | 3,255,128 | 41.42 % |
| Total | | 7,858,267 | 100.00 % |
Q3 | 20
CONSTI
| QUARTERLY INFORMATION (EUR 1,000) | Q3/15 | Q2/15 | Q1/15 | Q4/15 | Q3/15 | Q2/15 | Q1/15 | Q4/14 | Q3/14 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 70,554 | 64,813 | 51,367 | 74,939 | 70,361 | 63,357 | 47,494 | 69,854 | 64,345 |
| Other operating income | 435 | 115 | 183 | 301 | 151 | 167 | 179 | 181 | 100 |
| Change in inventories of finished goods and work in progress | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 38 | 0 |
| Materials and services | -49,423 | -44,481 | -35,163 | -51,222 | -50,920 | -43,641 | -32,289 | -47,969 | -45,293 |
| Employee benefit expenses | -12,878 | -13,457 | -12,064 | -14,966 | -12,273 | -12,914 | -11,421 | -14,141 | -11,391 |
| Other operating expenses | -4,167 | -3,922 | -3,686 | -5,559 | -3,721 | -4,139 | -3,377 | -4,291 | -3,947 |
| Adjusted EBITDA | 4,521 | 3,069 | 660 | 5,074 | 3,788 | 2,870 | 881 | 3,704 | 3,814 |
| Adjusted EBITDA margin, % | 6.4 % | 4.7 % | 1.3 % | 6.8 % | 5.4 % | 4.5 % | 1.9 % | 5.3 % | 5.9 % |
| EBITDA | 4,521 | 3,069 | 637 | 3,493 | 3,598 | 2,830 | 586 | 3,672 | 3,814 |
| EBITDA margin, % | 6.4 % | 4.7 % | 1.2 % | 4.7 % | 5.1 % | 4.5 % | 1.2 % | 5.3 % | 5.9 % |
| Depreciation | -792 | -454 | -446 | -441 | -632 | -506 | -515 | -578 | -510 |
| Adjusted operating profit (EBIT) | 3,729 | 2,614 | 214 | 4,633 | 3,156 | 2,364 | 366 | 3,126 | 3,304 |
| Adjusted operating profit (EBIT) margin, % | 5.3 % | 4.0 % | 0.4 % | 6.2 % | 4.5 % | 3.7 % | 0.8 % | 4.5 % | 5.1 % |
| Operating profit (EBIT) | 3,729 | 2,614 | 191 | 3,052 | 2,966 | 2,324 | 71 | 3,094 | 3,304 |
| Operating profit margin, % | 5.3 % | 4.0 % | 0.4 % | 4.1 % | 4.2 % | 3.7 % | 0.1 % | 4.4 % | 5.1 % |
| Total financial income and expenses | -202 | -233 | -288 | -281 | -1,465 | -1,261 | -1,353 | -1,342 | -1,316 |
| Profit before taxes (EBT) | 3,527 | 2,381 | -97 | 2,771 | 1,501 | 1,063 | -1,282 | 1,752 | 1,988 |
| Total taxes | -736 | -503 | 19 | -568 | -256 | -217 | 246 | -449 | -400 |
| Profit for the period | 2,791 | 1,878 | -77 | 2,203 | 1,245 | 846 | -1,036 | 1,303 | 1,588 |
| Balance sheet total | 97,132 | 91,815 | 87,229 | 90,692 | 88,494 | 95,252 | 93,981 | 95,861 | 97,682 |
| Net interest-bearing debt | 11,667 | 17,780 | 15,014 | 17,407 | 19,441 | 38,514 | 43,307 | 44,236 | 49,142 |
| Equity ratio, % | 32.5 % | 31.5 % | 33.4 % | 31.4 % | 30.6 % | 1.8 % | -0.7 % | 0.6 % | -0.7 % |
| Gearing, % | 44.6 % | 76.1 % | 61.4 % | 70.9 % | 88.6 % | 2811.2 % | neg. eq. | 9513.1 % | neg. eq. |
| Order backlog | 185,614 | 212,590 | 191,725 | 181,301 | 172,299 | 199,833 | 179,866 | 163,447 | 169,607 |
| Order intake | 30,285 | 75,554 | 51,156 | 63,639 | 28,502 | 74,534 | 46,829 | 52,320 | 49,429 |
| Average number of personnel | 956 | 940 | 896 | 900 | 947 | 936 | 858 | 872 | 863 |
| Number of personnel at period end | 931 | 990 | 904 | 890 | 928 | 981 | 864 | 853 | 867 |
| Earnings per share, undiluted (EUR) | 0.37 | 0.25 | -0.01 | 0.29 | 0.25 | 0.18 | -0.26 | 0.32 | 0.38 |
| Number of outstanding shares, end of period | 7,614,767 | 7,614,767 | 7,614,767 | 7,614,767 | 7,568,800 | 5,007,400 | 4,025,000 | 4,025,000 | 4,153,300 |
| Average number of shares | 7,614,767 | 7,614,767 | 7,614,767 | 7,573,796 | 5,033,320 | 4,651,889 | 4,025,000 | 4,032,062 | 4,153,300 |
Events after the reporting period
Consti specified its net sales guidance with a stock exchange release on October 26th 2016, in which it stated that the company estimates its net sales to grow compared to 2015.
In Helsinki, November 9th 2016
Consti Group Plc's Board of Directors
Q3 | 21
CONSTI
Press conference
A press conference for analysts, portfolio managers, and media will be arranged on Thursday November 10th 2016 at 10:00 at Hotel Glo Kluuvi at Kluuvinkatu 4, 2nd floor, Helsinki. The conference is hosted by CEO Marko Holopainen and CFO Esa Korkeela.
Financial reporting in 2017
Consti Group Plc's Financial Statements for 2016 will be published on Thursday February 16th 2017.
The electronic version of the annual report, which includes the full financial statements for 2016 will be published in week 11/2017.
Consti Group Plc's Annual General Meeting for 2017 is scheduled to take place on Tuesday, April 4th 2017 in Helsinki.
Consti Group Plc shall publish three interim reports during 2017:
- Interim report 1-3/2017 published May 4th 2017
- Half-year financial report 1-6/2017 published August 10th 2017
- Interim report 1-9/2017 published November 9th 2017
Distribution
Nasdaq Helsinki Key media www.consti.fi
This communication includes future-oriented statements that are based on Consti's management's current assumptions and issues it is aware of as well as its existing decisions and plans. Although the management believes that the future expectations are well-founded, there is no certainty that these expectations will prove to be correct. Thus the results may significantly deviate from the assumptions included in the future-oriented statements as a result of issues such as changes in the economy, markets competitive conditions, legislation and regulations.
Further information:
Marko Holopainen, CEO +358 400 458 158
Esa Korkeela, CFO +358 40 730 8568
Q3 | 22