2016 INTERIM REPORT 3

118 of the IPO prospectus, and acquisition costs. Adjusted operating profit was SEK 200 million (195) and the adjusted operat - ing margin was 6.1 per...

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2016 INTERIM REPORT 3 JULY–SEPTEMBER 2016

JANUARY–SEPTEMBER 2016

• Net sales amounted to SEK 3,289 million (3,302) • The order backlog increased by 19% to SEK 8,475 million (7,099) • Operating profit increased by 13 % to SEK 189 million (168) • The operating margin improved to 5.8% (5.1) • Adjusted operating profit was SEK 200 million (195) Specific costs* were SEK 11 million (27). The adjusted operating margin was 6.1% (5.9). • Profit after tax was SEK 133 million (109) • Cash flow from operating activities was SEK -57 million (-201) • Net debt amounted to SEK 2,783 million (2,972) • One acquisition was completed in the quarter, adding annual sales of SEK 290 million • Earnings per share were SEK 0.66 (0.54)

• Net sales increased by 2% to SEK 10,515 million (10,287) • Operating profit increased by 16% to SEK 591 million (507) • The operating margin improved to 5.6% (4.9) • Adjusted operating profit was SEK 602 million (571) Specific costs* were SEK 11 million (64). The adjusted operating margin was 5.7% (5.5). • Profit after tax was SEK 419 million (231) • Cash flow from operating activities was SEK 13 million (146) • Five acquisitions were completed in the period, adding annual sales of SEK 479 million • Earnings per share were SEK 2.08 (1.15) *For further information, see Note 3.

FINANCIAL OVERVIEW SEK MIL.

Net sales Operating profit/loss Operating margin, % Adjusted operating profit/loss Adjusted operating margin, % Profit/loss before tax Cash flow from operating activities Operating cash flow Interest coverage ratio Equity/assets ratio, % Order intake Order backlog

July–Sept July–Sept Jan–Sept Jan–Sept Jan–Dec 2016 2015 2016 2015 2015

3,289 189 5.8 200 6.1 172 -57 -4 12.5 30.8 3,693 8,475

3,302 168 5.1 195 5.9 136 -201 -171 2.7 28.9 3,458 7,099

10,515 591 5.6 602 5.7 542 13 138 13.2 30.8 11,678 8,475

10,287 507 4.9 571 5.5 349 146 306 2.3 28.9 10,363 7,099

14,206 782 5.5 878 6.2 422 841 988 2.5 31.2 14,249 7,092

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BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

2

CEO STATEMENT

“CONTINUED IMPROVEMENT IN MARGINS, BETTER CASH FLOW AND A STRONG ORDER BACKLOG” CONTINUED IMPROVEMENT IN MARGINS AND BETTER CASH FLOW Bravida’s operating margin improved in the third quarter from an underlying 5.9 percent to 6.1 percent. Sales and earnings performance in the quarter show that our ‘margin over volume’ strategy is sustainable. Operating margins have improved in Sweden, Denmark and Finland as a result of our improvement initiatives and careful selection of projects. The operating margin in the Norwegian business has decreased but is still the highest in the Group. Operations in Finland are developing according to plan. Considering our seasonal fluctuation our operating cash flow in the quarter was acceptable, an improvement of approximately SEK 150 million. UNCHANGED NET SALES Our net sales were unchanged in the quarter. This was due to certain factors that are independent of one another. Faced with tough competition in Stockholm, we have according to Bravida’s strategy ’margin over volume’, decided not to accept projects with low margins, which resulted in lower net sales in the region. We have also taken action on the cost side in Stockholm. In recent months, the order backlog in Stockholm has been built up to an acceptable level with good margins, which will increase our growth in the region. In 2014 and 2015, Bravida had several high volume projects in production which have now been completed. This contributed to a high growth and high comparative figures. It is pleasing that we are growing within service at some 7 percent over the period January to September and by 2 percent in the quarter. Acquired business contributed with a 5 percent growth,

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which is in line with Bravida’s financial targets. Continued good pipeline for acquisitions at attractive multiples. RECORD-HIGH ORDER BACKLOG Our order backlog, which only includes installations, is continuing to increase and by the end of the third quarter it was once again at a new record level of SEK 8.5 billion, which represents an increase of SEK 500 million over the past quarter. In recent years, Bravida has successfully carried out a number of major installation assignments as part of various hospital projects. More recently, these have resulted in several new major orders relating to new-builds, redevelopments and refurbishments of other hospitals, such as projects in Uppsala University Hospital and Kungälv Hospital in Sweden, and a hospital in Gødstrup in Denmark, which will lead to future growth. CONTINUED COMPETITION FOR LABOUR Bravida will grow and we will need more employees. We are working intensively with our resource issues and we are gradually strengthening our employer brand to be able to compete for skilled employees in the future. GRADUAL IMPROVEMENT IN DEMAND Several of our large construction company customers are also improving their order backlogs, which is positive for our own business going forward. We will see continued good demand for Bravida’s services, and our growth will gradually improve. The demand will be balanced against shortage in resources and price pressure which will continue our focus on ’margin over volume’.

Mattias Johansson Stockholm, October 2016

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

MARKET (SEE NOTES 2 AND 4) Demand for technical installations and service is stable with good demand for projects relating to hospitals, care, retail and housing, as well as infrastructure. The overall market is strong in Sweden, stable in Denmark and showing improvement in Finland. In Norway, the construction market is stable with the exception of the south-west of the country, where demand remains weak owing to lower activity in the oil and gas sector. Major construction firms in the Nordic region are reporting stable sales and increased order backlogs. NET SALES July–September Net sales were SEK 3,289 million (3,302), which means net sales were in line with the third quarter of 2015. Adjusted for currency fluctuations and acquisitions, net sales decreased by 4 percent. Currency fluctuations reduced net sales by 1 percent, while acquisitions contributed a 5 percent increase in net sales. Service sales rose by 2 percent. In Sweden, net sales were SEK 1,844 million (1,955), a decrease of 6 percent. In Norway, net sales increased by 7 percent to SEK 728 million (679). In Denmark, net sales increased by 9 percent to SEK 576 million (527). In Finland, net sales were SEK 144 million (146). Order intake in the quarter totalled SEK 3,693 (3,458), an increase of 7 percent. The order backlog at 30 September was SEK 8,475 million (7,099), an increase of 19 percent and a new record level for Bravida. The order backlog has grown by 19 percent since December 2015.

January–September Net sales increased by 2 percent to SEK 10,515 million (10,287). Adjusted for currency fluctuations and acquisitions, sales decreased by 3 percent. Currency fluctuations had a negative 1 percent effect on sales, while acquisitions contributed a 6 percent increase. Service sales rose by 7 percent. The service initiative that was introduced at the start of 2016 is currently being implemented. In Sweden, net sales were SEK 6,280 million (6,231), an increase of 1 percent. In Norway, net sales decreased by 9 percent to SEK 2,130 million (2,342). In local currency, net sales decreased by 3 percent. In Denmark, net sales rose by 5 percent to SEK 1,636 million (1,563). In Finland, net sales were SEK 477 million (170). Order intake for the period January to September increased by 13 percent to SEK 11,678 million (10,363).

118 of the IPO prospectus, and acquisition costs. Adjusted operating profit was SEK 200 million (195) and the adjusted operating margin was 6.1 percent (5.9). Establishment of the Finnish business resulted in a 0.2 percent (0.2) dilution of the operating margin during the quarter; accounting for this, the Group’s adjusted operating margin was 6.3 percent (6.1). Net financial items in the third quarter amounted to SEK -17 million (-32) and the impact on earnings from the market-based measurement of currency and interest rate hedges was SEK – million (31). In October 2015, the Group refinanced its debt by replacing bond financing with bank financing, with bonds and related currency and interest rate hedges being repaid. Profit after financial items was SEK 172 million (136). Profit after tax was SEK 133 million (109). Earnings per share for the third quarter were SEK 0.66 (0.54).

EARNINGS (SEE NOTE 3) July–September Operating profit rose by 13 percent to SEK 189 million (168), resulting in an operating margin of 5.8 percent (5.1). Operating profit in Sweden was SEK 103 million (108). Operating profit in Norway was SEK 50 million (52). Operating profit in Denmark rose by 14 percent to SEK 30 million (27). In Finland, operating profit was SEK 3 million (2). Group-wide earnings were SEK 3 million (-21). Part of the reason for the earnings improvement was that specific costs decreased to SEK 11 million (27). Specific costs in the third quarter of 2016 mainly relate to costs for final negotiations in the dispute regarding Thule Air Base, which was described on page

January–September Operating profit rose by 16 percent to SEK 591 million (507), resulting in an operating margin of 5.6 percent (4.9). Operating profit in Sweden increased by 14 percent to SEK 372 million (326). Operating profit in Norway was SEK 135 million (171). Operating profit in Denmark was SEK 70 million (74). In Finland, operating profit was SEK 0 million (-5). Group-wide earnings were SEK 14 million (-58). Part of the reason for the earnings improvement was that specific costs decreased to SEK 11 million (63). Adjusted operating profit was SEK 602 million (571) and the adjusted operating margin was 5.7 percent (5.5). Our initiatives to make improvements in productivity and purchasing are continu-

NET SALES (SEK MIL.) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

ORDER INTAKE (SEK MIL.) 16,500 15,500 14,500 13,500 12,500 11,500

1409 1412 1503 1506 1509 1512 1603 1606 1609

10,500

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

16,500

NET SALES BY COUNTRY, JANUARY–JUNE 2016

15,500 14,500 13,500 12,500 11,500 1409 1412 1503 1506 1509 1512 1603 1606 1609

10,500

60% Sweden 20% Norway

Net sales by quarter Rolling 12 months

3

Order intake by quarter Rolling 12 months

16% Denmark 4% Finland

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

ing to contribute to the margin improvement. The establishment of the Finnish business during the period resulted in a dilution of the operating margin; accounting for this, the adjusted operating margin was 6.0 percent (5.7). Net financial items amounted to SEK -49 million (-159) and the impact on earnings from the market-based measurement of currency and interest rate hedges was SEK – million (20). Profit after financial items was SEK 542 million (349). Profit after tax was SEK 419 million (231). Earnings per share for January to September were SEK 2.08 (1.15). DEPRECIATION AND AMORTISATION Depreciation and amortisation of machinery, equipment and intangible assets in the quarter amounted to SEK 6 million (5). Depreciation and amortisation for January to September amounted to SEK 19 million (15). TAX The tax expense for the third quarter was SEK -39 million (-28). Profit before tax was SEK 172 million (136). The effective tax rate for the quarter was 23 (20) percent. The tax rate in Sweden is 22 percent, in Norway 25 percent, in Denmark 22 percent and in Finland 20 percent. The tax expense for the January–September period was SEK -123 million (-117). The tax expense for the year-earlier period burdened by SEK 29 million, relating to a provision for a tax audit which has now been settled. The effective tax rate was 23 (34) percent. Profit before tax was SEK 542 million (349). Tax paid amounted to SEK 85 (3) million. CASH FLOW July–September The third quarter is seasonally weak because of the year’s main holiday period.

Cash flow from operating activities during the quarter was SEK -57 million (-201). Cash flow from investing activities was SEK -183 million (-95). Cash flow from financing activities was SEK 200 million (-1). During the quarter, investments in machinery and equipment amounted to SEK -3 million (-3) and acquisitions and divestments of subsidiaries and businesses totalled SEK -180 million (-92). Tax paid amounted to SEK 38 million (–). January–September Cash flow from operating activities for January to September was SEK 13 million (146) and cash flow from investing activities amounted to SEK -231 million (-204). Cash flow from financing activities was SEK -204 million (-337). During the period, investments in machinery and equipment amounted to SEK -4 million (-3) and acquisitions and divestments of subsidiaries and businesses totalled SEK -227 million (-201). Tax paid amounted to SEK 85 (3) million. ACQUISITIONS (SEE NOTE 5) Bravida completed one acquisition in the third quarter in Sweden. Bravida has acquired 100 percent of the shares in the Björnbergs Group, which offers heating and plumbing services in the Stockholm area. The Björnbergs Group has annual sales of approximately SEK 290 million and has around 170 employees. In the first six months of 2016, the Group acquired four businesses with estimated combined annual sales of SEK 189 million. ACQUISITION AGREEMENTS Bravida has signed agreements for two acquisitions in Sweden with effect from the fourth quarter of 2016. The companies provide installation and service of HVAC

and electrical systems, respectively, and each have sales of around SEK 40 million. FINANCIAL POSITION Bravida’s net debt amounted to SEK 2,783 million (2,972) at 30 September. Currency fluctuations did not have an effect on net debt. Equity amounted to SEK 3,619 million (3,306) at the end of the period. The equity/assets ratio was 30.8 percent (28.9). Net financial items for the third quarter amounted to SEK -17 million (-32), of which SEK -14 million (-53) was a net interest expense. Net financial items also included exchange differences of SEK 0 million (-8). The revaluation of currency and interest rate hedges amounted to SEK – million (31), all currency and interest rate hedges were settled in conjunction with the refinancing carried out in October 2015. Net financial items for the January–September period amounted to SEK -49 million (-159), of which SEK -42 million (-181) was a net interest expense. Net financial items also included exchange differences of SEK 1 million (5). The revaluation of currency and interest rate hedges amounted to SEK – million (20). Consolidated cash and cash equivalents were SEK 220 million (408) at 30 September. Interest-bearing liabilities amounted to SEK 3,003 million (3,420) at 30 September. Bravida’s total credit facilities amounted to SEK 4,003 million, of which SEK 3,003 million was unused at 30 September 2016. EMPLOYEES The average number of employees was 9,469 (9,374). PARENT COMPANY For the third quarter, revenues were SEK 15 million (0) and earnings before tax were SEK -14 million (-122). For the

NET SALES AND GROWTH SEK MIL.

July–Sept 2016

July–Sept 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

Net sales

3,289

3,302

10,515

10,287

14,206

-13

530

229

1,675

2,205

-0.4

19.1

2.2

19.5

18.4

-4

6

-3

7

7

5

15

6

12

12

-1

-2

-1

0

-1

Change Change, % Of which Organic growth, % Acquisitions, % Currency effects, %

4

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

January–September period, revenues were SEK 60 million (30) and earnings before tax were SEK -23 million (-168). This change in income was due to increased sales, lower costs and improved net financial items. OTHER EVENTS DURING THE PERIOD No events to report. SHAREHOLDER INFORMATION Bravida Holding AB was listed on Nasdaq Stockholm on 16 October 2015 at a price of SEK 40.0. At 30 September 2016 the share price was SEK 57.00, an increase of over 42 percent. The number of shareholders was 9,981 at 30 September 2016. Share capital amounted to SEK 4 million divided among 202,766,598 shares, of which 201,566,598 are ordinary shares and 1,200,000 are class C shares. Ordinary shares entitle holders to one vote and a dividend payment, while class C shares entitle holders to one-tenth of a vote and no dividend. Bravissima Holding AB’s (funds managed by Bain Capital) holding amounts to just over 30 percent and it is the only shareholder whose holding exceeds one-tenth of votes for all shares in the company. EVENTS SINCE THE END OF THE PERIOD Thommy Lundmark, who has been acting Division Head since April 2016, was appointed as permanent Head of Division North on 7 October.

FINANCIAL GOALS • Sales growth: Over 10 percent a year, comprising 5 percent organic growth and 5 to 7 percent through acquisitions • Operating margin: Over 7 percent, adjusted for any specific costs and including a dilutive effect from acquisitions • Cash conversion: Over 100 percent • Capital structure: In line with 2.5x net debt/adjusted EBITDA • Dividend policy: A minimum of 50 percent of net earnings while also taking account of other factors such as financial position, cash flow and growth opportunities. MATERIAL RISKS IN THE GROUP AND PARENT COMPANY Changes in market conditions, financial turmoil and political decisions are the external factors that mainly affect demand for new construction of housing and commercial property, as well as investment from industry and the public sector. Demand for service and maintenance is less sensitive to economic fluctuations. Operating risks are related to day-to-day business operations such as tendering, price risks, capacity utilisation and revenue recognition. Management of these risks is part of Bravida’s ongoing business process. The percentage-of-completion method is applied and is based on the extent of completion of each project and the expected date of completion. A well-

ADJUSTED OPERATING PROFIT (SEK MIL.) 350 250 200 150 100 50 0

developed process for the monitoring of projects is essential in limiting the risk of incorrect revenue recognition. Bravida continually monitors the financial status of each project to ensure that individual project calculations are not exceeded. The Group is also exposed to impairment loss risks in fixed-price contracts and various types of financial risk such as currency, interest rate and credit risk. These material risks and uncertainties apply to both parent company and the consolidated Group. TRANSACTIONS WITH RELATED PARTIES No transactions with related parties outside the Group took place during the period.

CASH FLOW FROM OPERATING ACTIVITIES (SEK MIL.) 1,000 900 800 700 600 500 400 300 200 100 0

300

1409 1412 1503 1506 1509 1512 1603 1606 1609

Adjusted operating profit by quarter Adjusted operating profit, rolling 12 months

5

800 700 600 500 400 300 200 100 0 -100 -200 -300

900 800 700 600 500 400 300 200 100 0 1409 1412 1503 1506 1509 1512 1603 1606 1609

Cash flow by quarter Cash flow, rolling 12 months

6

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

OPERATIONS IN SWEDEN MARKET The construction sector in Sweden remains stable, with the large building firms reporting unchanged sales performance but growing order backlogs. Confidence indicators for the construction industry are at historical highs. Bravida’s assessment is that demand for technical installations and service is strong in metropolitan regions and university towns and healthy in the rest of Sweden. NET SALES AND EARNINGS July–September Net sales in Sweden in the period decreased by 6 percent to SEK 1,844 million (1,955). The reason for the decrease in net sales is as follows: In Stockholm, Bravida has experienced tougher competition on pricing for some time and, based on our strategy, margin over volume, we have chosen not to accept projects with low margins. In recent months, however, the situation has

NET SALES (SEK MIL.)

improved and Bravida has started building up its order backlog at acceptable margins. In 2015, a number of volume projects were in production which contributed to significant growth and led to high comparative figures. Operating income was SEK 103 million (108), which equates to an operating margin of 5.6 percent (5.5).

ity of order intake in the quarter, however, related to small and medium-sized installation projects and service. January–September Order intake rose by 8 percent compared with the year-earlier period. The order backlog has grown by 17 percent since December 2015.

January–September Net sales in Sweden rose by 1 percent to SEK 6,280 million (6,231). Operating profit rose by 14 percent to SEK 372 million (326), resulting in an operating margin of 5.9 percent (5.2). ORDER INTAKE AND ORDER BACKLOG July–September Order intake was unchanged, while the order backlog rose by 23 percent compared with the year-earlier period. Bravida Sweden received a number of large orders concerning apartment projects and two office projects. The major-

SEK MIL.

July–Sept July–Sept 2016 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

6,280 372

6,231 326

8,583 480

9,500

Net sales Operating profit (EBIT)

9,000

Operating margin, %

5.6

5.5

5.9

5.2

5.6

8,500

1,500

Order intake

1,979

1,972

6,879

6,372

8,886

8,000

1,000

7,500

Order backlog Average number of employees

4,694 5,233

3,822 5,090

4,694 5,233

3,822 5,090

3,999 5,102

2,500 2,000

1,955 108

7,000

500 0

1,844 103

6,500 1409 1412 1503 1506 1509 1512 1603 1606 1609

6,000

Image: Stockholms Hamnar/Per-Erik Adamsson

Net sales by quarter, Sweden Rolling 12 months, Sweden

OPERATING PROFIT (SEK MIL.)

1409 1412 1503 1506 1509 1512 1603 1606 1609

Operating profit by quarter, Sweden Rolling 12 months, Sweden

The new Värta Terminal in Stockholm opened to passengers on 21 June 2016. During construction of the terminal Bravida provided an end-to-end solution consisting of electrical, heating and plumbing, HVAC, cooling, sprinklers and system control. We have now also won the contract for operation of installations at the terminal and Bravida TSM will be providing services across its 16,000 square metres.

7

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

OPERATIONS IN NORWAY MARKET The Norwegian economy has stabilised after several years’ economic downturn and the next few years are expected to show a gradual improvement. Increased investments in public-sector construction and infrastructure and housing, however, have resulted in a stable Norwegian construction sector. Construction starts for housing and commercial facilities have increased in 2016. Bravida’s assessment is that demand for technical installations and service is strong around Oslo and in the northern parts and healthy in the rest of Norway, except for the south-west of the country where demand remains weak. NET SALES AND EARNINGS July–September Net sales increased by 7 percent to SEK 728 million (679). Net sales increased for all regions, except in south-west Norway. Organic growth was positive in the quarter. Operating income was SEK 50 million (52), which equates to an operating margin of 6.9 percent (7.7). In the second half

NET SALES (SEK MIL.)

January–September Net sales decreased by 9 percent to SEK 2,130 million (2,342). In local currency, net sales decreased by 3 percent. The lower sales are mainly due to lower activity in the south-west of Norway. Operating income was SEK 135 million (171), which equates to an operating margin of 6.4 percent (7.3). The lower operating income was due to costs to adapt the organisation, lower sales in south-west Norway, the weaker Norwegian krone and the final completion of several large projects in the second half of 2015.

Tromsø hospital, which is the reason for the comparatively lower order intake for 2016. The order backlog has grown by 12 percent. During the quarter, Bravida Norway received a number of large orders relating to new-builds of offices and housing, and the installation of a security system for a museum. The majority of order intake in the quarter, however, related to small and medium-sized installation projects and service. January–September Order intake rose by 4 percent. The order backlog has grown by 27 percent since December 2015.

ORDER INTAKE AND ORDER BACKLOG July–September Order intake has decreased by 17 percent. In the third quarter of 2015, an order for SEK 280 million was received concerning

SEK MIL.

July–Sept July–Sept 2016 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

2,130 135

2,342 171

3,173 256

3,200

Net sales Operating profit (EBIT)

3,100

Operating margin, %

6.9

7.7

6.4

7.3

8.1

3,000

Order intake

749

906

2,476

2,377

3,018

1,640 2,230

1,462 2,356

1,640 2,230

1,462 2,356

1,295 2,359

3,300

900 800 700 600 500 400 300 200 100 0

of 2015, several large projects were completed which contributed to a high operating margin. In addition, the operating margin in south-west Norway deteriorated in 2016.

2,900 2,800 2,700

Order backlog Average number of employees

728 50

679 52

2,600 2,500 1409 1412 1503 1506 1509 1512 1603 1606 1609

Net sales by quarter, Sweden Rolling 12 months, Sweden

Image: eve images

OPERATING PROFIT (SEK MIL.)

1409 1412 1503 1506 1509 1512 1603 1606 1609

Operating profit by quarter, Sweden Rolling 12 months, Sweden

Orkla is getting new headquarters in Oslo. The building is to gain BREEAM-NOR Excellent environmental certification and will have its own solar PV panels on the roof. Bravida is providing both project planning and installation of all electrical, alarm and entry systems. With the main body of the building consisting of seven floors and a 16-storey tower, the building has total floor area of 21,000 square metres. The project is expected to be completed towards the end of 2018.

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

8

OPERATIONS IN DENMARK MARKET The Danish construction market is stable. The market is being driven by new-builds and renovation of public-sector buildings such as hospitals, universities and schools, as well as increased new-builds and renovation of housing. However, the confidence indicator for the Danish construction sector is still slightly below the normal level. Bravida’s assessment is that demand for technical installations and service is healthy in major cities. NET SALES AND EARNINGS July–September Net sales increased by 9 percent to SEK 576 (527). Organic growth was positive in the quarter. Operating income was SEK 30 million (27), which equates to an operating margin of 5.2 percent (5.0). Currency fluctuations had a marginal impact on sales and operating profit.

NET SALES (SEK MIL.)

January–September Net sales increased by 5 percent to SEK 1,636 (1,563). Organic growth was positive in the quarter. Operating income was SEK 70 million (74), which equates to an operating margin of 4.3 percent (4.7). The lower operating profit in the period was attributable to two project write-downs in the first quarter of 2016.

January–September Order intake increased by 33 percent compared with the year-earlier period. The order backlog has grown by 28 percent since December 2015.

ORDER INTAKE AND ORDER BACKLOG July–September Order intake increased by 95 percent and the order backlog rose by 30 percent compared with the year-earlier period. Bravida Denmark received an order for technical installations in the newly built hospital in Gødstrup on Jutland, with an order value of up to SEK 390 million. The majority of order intake in the quarter, however, related to small and medium-sized installation projects and service.

SEK MIL.

July–Sept July–Sept 2016 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

1,636 70

1,563 74

2,116 108

2,500

Net sales Operating profit (EBIT)

2,000

Operating margin, %

5.2

5.0

4.3

4.7

5.1

400

1,500

Order intake

828

426

1,919

1,443

2,014

300

1,000

Order backlog Average number of employees

1,839 1,577

1,414 1,431

1,839 1,577

1,414 1,431

1,432 1,446

700 600 500

200

527 27

500

100 0

576 30

1409 1412 1503 1506 1509 1512 1603 1606 1609

0

Net sales by quarter, Sweden Rolling 12 months, Sweden

OPERATING PROFIT (SEK MIL.)

1409 1412 1503 1506 1509 1512 1603 1606 1609

Operating profit by quarter, Sweden Rolling 12 months, Sweden

Building OU44 at the University of Southern Denmark in Odense is one of the 20 most energy-efficient buildings in the world. Bravida provided the installation of all electrical systems, heating and plumbing, HVAC, sprinklers, automation and solar PV panel solutions. All technical installations in the building were subject to performance testing to demonstrate the building meets the Danish Construction Association’s stringent 2020 requirements.

9

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

OPERATIONS IN FINLAND MARKET The construction sector in Finland has gradually improved over the past year and construction companies are reporting increased sales and better order levels, and the number of building permits has also risen. Confidence indicators for the Finnish construction industry are slightly above normal levels.

and service departments of Peko Group in June 2015 and Halmesvaara OY in July 2015. Operating income was SEK 0 million (-5), which equates to an operating margin of 0.0 percent (-3.2).

NET SALES AND EARNINGS July–September Net sales amounted to SEK 144 million (146). Operating income was SEK 3 million (2), which equates to an operating margin of 2.1 percent (1.5). Currency fluctuations had a marginal impact on sales and operating profit.

ORDER INTAKE AND ORDER BACKLOG July–September Order intake amounted to SEK 139 million (159). The majority of order intake in the quarter related to small and mediumsized installation projects and service. A large order was received in the quarter regarding the refurbishment of office premises in Helsinki. The order backlog at the end of the quarter was SEK 302 million (401).

January–September Net sales amounted to SEK 477 million (170). Bravida Finland was formed in 2015 through the acquisition of the installation

January–September Order intake amounted to SEK 413 million (191). Project selection has resulted in a lower order backlog.

NET SALES (SEK MIL.)

SEK MIL.

Net sales Operating profit (EBIT)

July–Sept July–Sept 2016 2015

144 3

146 2

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

477 0

170 -5

358 0

Operating margin, %

2.1

1.5

0.0

-3.2

0.0

Order intake

139

159

413

191

355

Order backlog Average number of employees

302 358

401 433

302 358

401 433

367 387

1506 1509 1512 1603 1606 1609

Net sales by quarter, Sweden Rolling 12 months, Sweden

8 6 4 2 0 -2 -4 -6

1506 1509 1512 1603 1606 1609

8 6 4 2 0 -2 -4 -6 -8 -10 -12

Operating profit by quarter, Sweden Rolling 12 months, Sweden

Image: Fennia

OPERATING PROFIT (SEK MIL.)

Located at the southern end of the Esplanade Park in Helsinki is the heritage building that has long been a meeting place for the Finnish financial industry. It is now owned by insurance company Fennia, which entrusted Bravida with installing all electrical, heating and plumbing, HVAC and sprinkler systems during the property’s refurbishment. The plan is to create new office spaces and the project is expected to be completed in spring 2017.

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

10

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME, SUMMARY

SEK MIL.

July–Sept 2016

July–Sept 2015

Jan–Sept 2016

Jan-Sept 2015

Jan–Dec 2015

Oct 2015– Sept 2016

Net sales

3,289

3,302

10,515

10,287

14,206

14,434

Production costs

-2,822

-2,821

-9,015

-8,810

-12,081

-12,287

Gross profit/loss

466

481

1,500

1,477

2,124

2,148

Selling and administrative expenses

-277

-312

-909

-969

-1,342

-1,282

Operating profit/loss

189

168

591

507

782

866

-17

-64

-49

-178

-227

-97



31



20

-133

-153

Profit/loss before tax

172

136

542

349

422

616

Tax on profit/loss for the period

-39

-28

-123

-117

-135

-141

Profit/loss for the period

133

109

419

231

287

475

57

-18

101

-43

-89

55



-13



15

171

156

-151

97

-335

99

248

-187

Net financial items Revaluation of currency and interest hedges

Other comprehensive income Items transferred or that can be transferred to profit or loss Translation differences for the year from the translation of foreign operations Change in hedging reserve Items that cannot be transferred to profit or loss Revaluation of defined-benefit pensions Tax attributable to items in other comprehensive income

33

-18

74

-25

-92

7

Comprehensive income for the period

73

155

258

277

525

505

73

152

258

273

519

504

0

3

0

4

5

2

73

155

258

277

525

505

0.66

0.54

2.08

1.15

1.42

2.35

Order intake

3,693

3,458

11,678

10,363

14,249

15,564

Order backlog

8,475

7,099

8,475

7,099

7,092



Comprehensive income for the period attributable to: Equity holders of the parent Non-controlling interests Comprehensive income for the period

Earnings per share for the period, SEK Order

Number of shares in the parent company

SEK MIL.

Operating profit/loss Adjustments relating to specific costs * Adjusted operating profit/loss * See note 3.

201,566,598 201,566,598 201,566,598 201,566,598 201,566,598 201,566,598

July–Sept 2016

July–Sept 2015

Jan–Sept 2016

Jan-Sept 2015

Jan–Dec 2015

Oct 2015– Sept 2016

189

168

591

507

782

866

11

27

11

63

96

43

200

195

602

571

878

909

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

11

CONSOLIDATED BALANCE SHEET, SUMMARY SEK MIL.

Goodwill Other non-current assets

30 Sept 2016

30 Sept 2015

31 Dec 2015

7,508

7,185

7,211

204

313

219

Total non-current assets

7,712

7,498

7,429

Trade receivables

2,259

2,074

2,165



54



1,147

1,023

813

Receivables from Group companies Income accrued but not invoiced Other current assets

407

386

415

Cash and cash equivalents

220

408

573

Total current assets

4,033

3,945

3,967

11,745

11,443

11,396

Equity

3,619

3,306

3,555

Other non-current liabilities

3,175

3,747

2,877

Trade payables

1,295

1,237

1,399

Income invoiced but not accrued

1,367

1,362

1,287

Other current liabilities

2,289

1,790

2,278

Total assets

Total liabilities Total equity and liabilities Of which interest-bearing liabilities

8,126

8,136

7,842

11,745

11,443

11,396

3,003

3,590

3,005

3,608

3,295

3,543

Equity attributable to: Equity holders of the parent Non-controlling interests Total equity

11

11

11

3,619

3,306

3,555

30 Sept 2016

30 Sept 2015

31 Dec 2015

3,555

3,306

3,306

STATEMENT OF CHANGES IN EQUITY SEK MIL.

Consolidated equity Opening balance Comprehensive income for the period Dividend Cost shareholder programme Closing balance

258

277

525

-202

-277

-277

8



1

3,619

3,306

3,555

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

12

CONSOLIDATED CASH FLOW STATEMENT, SUMMARY July–Sept 2016

July–Sept 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

172

136

542

349

422

20

-22

-4

-31

278

-38



-85

-3

-10

-211

-315

-440

-168

150

-57

-201

13

146

841

-180

-92

-227

-201

-235

-3

-3

-4

-3

-27

-183

-95

-231

-204

-262

Loans to Group companies







-54



Repayment of loan





-2



-3,441 3,002

SEK MIL.

Cash flow from operating activities Profit/loss before tax Adjustment for non-cash items Income taxes paid Changes in working capital Cash flow from operating activities Investing activities Acquisition of subsidiaries and businesses Other Cash flow from investing activities Financing activities

New loan

198







Change in utilisation of overdraft facility

2

-1

0

-6

-6

Payment in connection with refinancing









-46

Dividend paid





-202

-277

-277

Cash flow from financing activities

200

-1

-204

-337

-767

Cash flow for the period

-40

-296

-422

-394

-189

Cash and cash equivalents at start of year

226

715

573

828

828

34

-11

70

-25

-66

220

408

220

408

573

July–Sept 2016

July–Sept 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

189

168

591

507

782

6

5

12

15

21

14

-27

-21

-46

62

Translation difference in cash and cash equivalents Cash and cash equivalents at end of period

OPERATING CASH FLOW SEK MIL.

Operating profit/loss Depreciation and amortisation Other adjustments for non-cash items Capital expenditure Changes in working capital Operating cash flow

-3

-3

-4

-3

-27

-211

-315

-440

-168

150

-4

-171

138

306

988

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

13

PARENT COMPANY INCOME STATEMENT, SUMMARY SEK MIL.

July–Sept 2016

July–Sept 2015

Jan–Sept 2016

Jan–Sept 2015

Jan–Dec 2015

Net sales

15



60

30

71

Selling and administrative expenses

-16

-39

-61

-78

-103

-1

-39

-1

-48

-32

Operating profit/loss Net financial items

-13

-83

-22

-120

-111

Profit/loss after financial items

-14

-122

-23

-168

-143

Net Group contribution









490

Transfer to/from untaxed reserves









-78

-14

-122

-23

-168

269

Profit/loss before tax Tax on profit/loss for the period Profit/loss for the period

2

0

2

-20

-81

-11

-122

-21

-189

188

PARENT COMPANY BALANCE SHEET, SUMMARY SEK MIL.

Shares in subsidiaries Deferred tax asset Total non-current assets Receivables from Parent company Receivables from Group companies Current receivables Total current receivables Cash and bank balances

30 Sept 2016

30 Sept 2015

31 Dec 2015

7,341

7,341

7,341



8



7,341

7,349

7,341



54



2,269

2,087

1,897

103

17

45

2,371

2,158

1,942

155

271

456

Total current assets

2,527

2,429

2,397

Total assets

9,868

9,779

9,739

Restricted equity

4

4

4

4,380

4,216

4,595

4,384

4,220

4,599

78



78

Provisions



2



Bond loan



3,418



2,700



2,700

2,700

3,418

2,700

300



300

2,313

2,051

1,920

Non-restricted equity Equity Untaxed reserves

Liabilities to credit institutions Total non-current liabilities Short-term loans Liabilities to Group companies Other current liabilities

94

88

142

Total current liabilities

2,707

2,139

2,362

Total equity and liabilities

9,868

9,779

9,739

3,000

3,418

3,000

201,566,598

201,566,598

201,566,598

Of which interest-bearing liabilities Number of shares

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

14

Quarterly data July–Sept 2016

Apr–Jun 2016

Jan–Mar 2016

Oct–Dec 2015

July–Sept 2015

Apr–Jun 2015

Jan–Mar 2015

Jan–Dec 2015

3,289 -2,822 466 -277 189 11

3,800 -3,245 555 -328 227 –

3,427 -2,948 479 -305 175 –

3,919 -3,272 647 -372 275 33

3,302 -2,821 481 -312 168 27

3,660 -3,135 525 -339 187 17

3,325 -2,854 471 -318 152 20

14,206 -12,081 2,124 -1,342 782 96

200 -17 172 -39 133

227 -16 211 -48 163

175 -15 159 -36 123

308 -202 74 -18 56

195 -32 136 -28 109

203 -58 129 -68 61

172 -68 84 -22 62

878 -360 422 -135 287

BALANCE SHEET, SEK MIL.

30 Sept 2016

30 Jun 2016

31 Mar 2016

31 Dec 2015

30 Sept 2015

30 Jun 2015

31 Mar 2015

31 Dec 2015

Goodwill Other non-current assets Current assets Cash and cash equivalents Total assets

7,508 204 3,813 220 11,745

7,276 175 3,638 226 11,314

7,239 141 3,521 390 11,290

7,211 219 3,395 573 11,396

7,185 313 3,536 408 11,443

7,120 342 3,334 715 11,512

7,016 367 3,005 991 11,379

7,211 219 3,395 573 11,396

Equity Borrowings Other non-current liabilities Current liabilities Total equity and liabilities

3,619 2,700 475 4,951 11,745

3,543 2,700 300 4,771 11,314

3,640 2,700 174 4,776 11,290

3,555 2,700 177 4,964 11,396

3,306 3,420 330 4,387 11,443

3,152 3,374 407 4,579 11,512

3,357 3,390 424 4,209 11,379

3,555 2,700 177 4,964 11,396

July–Sept 2016

Apr–Jun 2016

Jan–Mar 2016

Oct–Dec 2015

July–Sept 2015

Apr–Jun 2015

Jan–Mar 2015

Jan–Dec 2015

-57 -183 200 -40

57 -36 -204 -182

13 -13 -200 -200

694 -58 -431 205

-201 -95 -1 -296

59 -44 -279 -264

289 -65 -57 167

841 -262 -767 -189

INCOME STATEMENT, SEK MIL.

Net sales Production costs Gross profit/loss Administrative and selling expenses Operating profit/loss Adjustments relating to specific costs Operating profit/loss after adjustment of costs of a specific nature Net financial items Profit/Loss after financial items Tax on profit/loss for the period Profit/loss for the period

CASH FLOW, SEK MIL.

Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash flow for the period

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

15

Quarterly data July–Sept 2016

KEY FIGURES

Operating margin, % Adjusted operating margin, % Profit margin, % Return on equity,* % Net debt Net debt/adjust. EBITDA, 12 m Cash conversion,* % Interest coverage ratio Equity/assets ratio, % Order intake Order backlog Average no. of employees Administration costs as % of sales Working capital as % of sales Earnings per share for the period, SEK** Equity per share, SEK** Cash flow from operating activities per share, SEK** Dividend per share, SEK Share price at balance sheet date, SEK

5.8 6.1 5.2 13.3 2,783 3.0 91 12.5 30.8 3,693 8,475 9,469 8.4 -4.9 0.66 17.96 -0.28 – 57.00

Apr–Jun Jan–Mar 2016 2016

6.0 6.0 5.5 12.5 2,577 2.8 77 15.6 31.3 4,515 7,972 9,302 8.6 -6.3 0.81 17.58 0.28 – 50.50

5.1 5.1 4.6 9.7 2,416 2.7 85 11.7 32.2 3,469 7,135 9,419 8.9 -7.2 0.61 18.06 0.06 – 59.75

Oct–Dec July–Sept 2015 2015

7.0 7.9 1.9 8.4 2,433 2.7 125 4.3 31.2 3,886 7,092 9,359 9.5 -7.9 0.28 17.64 3.44 – 55.50

5.1 5.9 4.1 12.1 2,972 3.4 113 2.7 28.9 3,458 7,099 9,374 9.5 -5.7 0.54 16.40 -1.00 – –

Apr–Jun Jan–Mar Jan–Dec 2015 2015 2015

5.1 5.6 3.5 10.4 2,675 3.2 124 2.3 27.4 3,669 6,875 8,874 9.3 -8.5 0.30 15.64 0.29 – –

4.6 5.2 2.5 10.8 2,441 3.0 128 1.9 29.5 3,236 6,502 8,798 9.6 -8.6 0.31 16.65 1.43 – –

5.5 6.2 3.0 8.4 2,433 2.7 125 2.5 31.2 14,249 7,092 9,359 9.4 -7.9 1.42 17.64 4.17 1.00 55.50

*Calculated on rolling 12-month earnings. **In the third quarter of 2015, a reverse 1:2 split of the company’s shares was carried out, following which there are 201,566,598 shares. Earnings per share from previous periods have been restated in this interim report.

SALES BY GEOGRAPHICAL MARKET IN 2016 TECHNICAL AREAS

Sweden Norway Denmark Finland The Group

Service

Installation

Electrical

Heating & Plumbing

HVAC

Specialist areas

47% 54% 46% 23% 48%

53% 46% 54% 77% 52%

46% 71% 56% 29% 52%

28% 17% 25% 27% 25%

19% 4% 19% 18% 16%

7% 9% 0% 26% 7%

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

16

NOTES NOTE 1. ACCOUNTING POLICIES This interim report for the group has been prepared in accordance with IAS 34 Interim Reporting and appropriate sections of Chapter 9, Interim Reporting, of the Swedish Annual Accounts Act. The parts of the interim report that relate to the parent company have been prepared in accordance with Section 9, Interim Reporting, of the Swedish Annual Accounts Act.

This report has been prepared in accordance with the same accounting policies and calculation methods as the 2015 Annual Report. New and amended IFRS standards and interpretations from the IFRS Interpretations Committee that apply from 1 January 2016 have no significant effect on Bravida Holding AB's financial reporting.

NOTE 2. SEGMENT REPORTING Bravida's segments are countries, i.e.: Sweden, Norway, Denmark and Finland. NET SALES BY COUNTRY SEK MIL.

Jul–Sep 2016

breakdown

Jul–Sep 2015

breakdown

Jan–Sep 2016

breakdown

Jan–Sep 2015

breakdown

Jan–Dec 2015

breakdown

Sweden

1,844

56%

1,955

59%

6,280

60%

6,231

61%

8,583

60%

Norway

728

22%

679

21%

2,130

20%

2,342

23%

3,173

22%

Denmark

576

18%

527

16%

1,636

16%

1,563

15%

2,116

15%

Finland*

144

4%

146

4%

477

5%

170

2%

358

3%

Group-wide and eliminations Total

-3

-5

-8

-19

-24

3,289

3,302

10,515

10,287

14,206

OPERATING PROFIT/LOSS, OPERATING MARGIN AND PROFIT/LOSS BEFORE TAX SEK MIL.

Jul–Sep 2016

margin

Jul–Sep 2015

margin

Jan–Sep 2016

margin

Jan–Sep 2015

margin

Jan–Dec 2015

margin

Sweden

103

5,6%

108

5,5%

372

5,9%

326

5,2%

480

5,6%

Norway

50

6,9%

52

7,7%

135

6,4%

171

7,3%

256

8,1%

Denmark

30

5,2%

27

5,0%

70

4,3%

74

4,7%

108

5,1%

Finland*

3

2,1%

2

1,5%

0

0,0%

-5

-3,2%

0

0,0%

5,8%

168

5,1%

591

5,6%

507

4,9%

782

6,1%

195

5,9%

602

5,7%

571

5,5%

878

Group and eliminations Total Adjustments (specific costs)** Adjusted operating profit/loss Net financial items Revaluation of currency and interest hedges Profit/loss before tax

AVERAGE NUMBER OF EMPLOYEES

3 189

-21

11 200 -17

14

27 -64

-58

11 -49

-62

63

96

-178

-227



31



20

-133

172

136

542

349

422

Jan–Sep 2016

Jan–Sep 2015

Jan–Dec 2015

Sweden

5,233

5,090

5,102

Norway

2,230

2,356

2,359

Denmark

1,577

1,431

1,446

Finland*

358

433

387

70

64

65

9,469

9,374

9,359

Group and eliminations Total

*Finland only for part of 2015. **Specific costs have only had an effect on Group-wide operations, not the other segments.

5,5% 6,2%

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

17

NOTE 3. SPECIFIC COSTS

NOTE 4. SEASONAL VARIATIONS

Specific costs are costs that are limited in time and relate mainly to improvement programmes, acquisition costs, the IPO, and during the third quarter 2016 costs for final negotiation of dispute. For distribution of specific costs per period, see also chart on page 10.

Bravida’s business is affected by seasonal variations in the construction industry and employees’ annual holiday. Bravida usually has a lower level of activity in the third quarter as it is the main holiday period.

NOTE 5. ACQUISITION OF OPERATIONS (See page 4 for acquisitions) Bravida made the following acquisitions during the period January to September 2016: Estimated annual sales in SEK MIL.

Acquired unit

Country

Type

Month of acquisition

Heating and plumbing business, Oslo

Norway

Company

January

Electrical business, Jutland

Denmark

Assets and liabilities March

Heating and plumbing business, Sandnes

Norway

Company

April

Electrical business, Sandnes

Norway

Company

April

25%

Electrical business, Copenhagen

Denmark

Company

May

100%

52

Specialist business, Ljungby

Sweden

Assets and liabilities June

100%

8

12

Heating and plumbing business, Stockholm

Sweden

Company

100%

179

290

July

Percentage of votes

No. of employees

100%

35

69

100%

25

38

70

25%

Effects of acquisitions in 2016 Acquisitions have the following effects on consolidated assets and liabilities Group fair value, SEK MIL.

Intangible assets

1

Other non-current assets

11

Other current assets

52

Cash and cash equivalents

15

Provisions

-8

Long-term liabilities

-15

Current liabilities

-73

Sum net identifiable assets and liabilities

-17

Consolidated goodwill

227

Aquisition price

210

Cash and cash equivalents (acquired) Net effect on cash and cash equivalents

0 211

Calculation of cost Cash consideration paid Consideration recognised as a liability Aquisition price

186 25 210

NOTE 6. FINANCIAL INSTRUMENTS Currency and interest hedges have been valued by an external party using the cash flow model, which is based on observable data for the currency and fixedincome markets. The fair value of interest rate hedges are calculated using market value on the basis of listed prices. Based on the input data used, valuation can be classified as follows: − Level 1 refers to fully observable data, unadjusted listed prices on an active market for identical assets and liabilities to which the company has access at the time of valuation.

− Level 2 refers to observable data, other than the listed prices of level 1, which is directly or indirectly observable. − Level 3 refers to non-observable data for assets or liabilities. An asset or liability is included in its entirety in one of the three levels, based on the lowest level of input data that is material to the valuation. Currency and interest hedges of the Group and the parent company which were ended during 2015 belonged to level 2.

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

The Board of Directors and Chief Executive Officer warrant that the report gives a true and fair overview of the operations, financial position and results of the Group and parent company, and describes significant risks and uncertainties faced by the parent company and the companies included in the Group.

Stockholm, 28 October 2016 Bravida Holding AB

Monica Caneman Chairman

Ivano Sessa Director

Michael Siefke Director

Cecilia Daun Wennborg Director

Jan Johansson Director

Mikael Norman Director

Staffan Påhlsson Director

Mattias Johansson CEO and Group President

Jan Ericson Employee representative

Örnulf Thorsen Employee representative

Anders Mårtensson Employee representative

Geir Gjestad Employee representative

18

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

19

REVIEW REPORT

TO THE BOARD OF DIRECTORS OF BRAVIDA HOLDING AB (PUBL) CORP. ID. 556891-5390 INTRODUCTION We have reviewed the summary interim financial information (interim report) of Bravida Holding AB (publ) as of 30 September 2016 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review

CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, 28 October 2016 SCOPE OF REVIEW We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

This information is information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on 28 October 2016. FOR FURTHER INFORMATION, PLEASE CONTACT: Mattias Johansson, President and CEO E-mail: [email protected] Telephone: +46 8 695 20 00 Nils-Johan Andersson, CFO E-mail: [email protected] Telephone: +46 70 668 50 75

KPMG AB Anders Malmeby Authorized Public Accountant

This report contains information and opinions on future prospects for Bravida's business activities. The information is based on Group management's current expectations and estimates. Actual future outcomes may vary considerably from the forward-looking statements in this report, partly because of changes in economic, market and competitive conditions. FINANCIAL REPORTING DATES Year-end report 2016

22 February 2017

Interim report 1 2017

10 May 2017

Interim report 2 2017

25 July 2017

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

DEFINITIONS FINANCIAL DEFINITIONS RETURN ON EQUITY Profit/loss after financial items less calculated tax based on each country’s tax rate in relation to taxable earnings as a percentage of average equity EBIT Operating profit consists of comprehensive income before financial items and income tax. EBITDA Operating profit before depreciation and amortisation. 12-MONTH CASH CONVERSION 12-month EBITDA (operating profit/ loss plus depreciations and amortisations) +/- change in working capital and investments in machinery and equipment in relation to 12-month EBIT (operationg profit/loss). NET SALES Net sales are recorded in accordance with the principle of percentage-ofcompletion method. These revenues are recognised in proportion to the degree of completion of projects.

NET DEBT Interest-bearing liabilities, excluding pension liabilities, less cash and cash equivalents. OPERATING CASH FLOW Operating profit/loss adjusted for noncash items, investments in machinery and equipment and changes in working capital. ORDER INTAKE The value of projects received and changes to existing projects during the period in question. ORDER BACKLOG The value of remaining, not yet accrued, project revenues from orders on hand at the end of the period.

WORKING CAPITAL Total current assets, excluding cash and cash equivalents, less current liabilities. OPERATING MARGIN Operating profit in percentage of net sales. EQUITY/ASSETS RATIO Equity plus, in the parent company, the equity share of untaxed reserves, as a percentage of total assets at the end of the period. PROFIT MARGIN Profit/loss after financial items as a percentage of net sales.

INTEREST COVERAGE RATIO Profit/loss after financial items, plus interest charges, divided by interest expenses.

OPERATIONAL DEFINITIONS NUMBER OF EMPLOYEES Calculated as the average number of employees during the year, taking account of the percentage of full-time employment. INSTALLATION/CONTRACTING The installation and refurbishment of technical systems in properties, facilities and infrastructure. SERVICE The operation, maintenance and minor refurbishment of installations in properties, facilities and infrastructure.

ELECTRICAL Power supply, lighting, heating, control and surveillance systems. Telecom and other low-voltage installations. Fire and intruder alarm systems and products, access control systems, CCTV and integrated security systems. HVAC Comfort ventilation and comfort cooling through air treatment, air conditioning and climate control. Commercial cooling in freezer and cold rooms. Process ventilation control systems. Energy audits and energy efficiency through heat recovery ventilation, heat pumps, etc.

HEATING & PLUMBING Water, waste water, heating, sanitation, cooling and sprinkler systems. District heating and cooling. Industrial piping with expertise in all types of pipe welding. Energy saving through integrated energy systems.

20

21

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

THIS IS BRAVIDA Bravida is a leading multi-technical service provider for properties and facilities in the Nordics across three main technical areas: electrical, heating and plumbing and HVAC. We combine the resources of a large company with the flexibility and presence of a local company in around 140 locations. With modern technology and innovative solutions, we bring buildings to life. Our installation and service contracts cover buildings’ energy, heating, cooling, water and air. Through the installation of modern technical systems and regular service, we create the conditions for sustainable growth and development in society.

MISSION We offer installation and service of electrical, heating & plumbing and HVAC solutions. Our skills and efficiency add value and benefit for our customers on a daily basis.

BUSINESS MODEL

EMPLOYEES

T UR

HO

ED

Size and proximity

Coordinated purchasing

UC T

Skilled employees are at the heart of our business

UR WO

B U S I N E S S I S S T RU C

Cost-effective ness

USINESS IS COND

We manage our business according to a number of key goals that reflect our aims regarding growth, stability and leadership in the sector.

CUSTOMER

We aim to create value for our customers and profitability for Bravida.

Extensive services, expertise and management skills

UR B

OBJECTIVES

WO

We aim to become the leading multitechnical service provider in the Nordics. Our comprehensive capabilities help boost our customers’ competitiveness.”

High and consistent quality

Combining installation and service

HO

VISION

ED

We combine local presence with the resources of a big company.

Proactivity

BRAVIDA INTERIM REPORT JANUARY–SEPTEMBER 2016

WE BRING BUILDINGS TO LIFE HEADQUARTERS

SWEDEN NORTH

SWEDEN STOCKHOLM

Bravida Holding AB 126 81 Stockholm Street address: Mikrofonvägen 28 Sweden Telephone: +46 8 695 20 00 www.bravida.se

Bravida Sverige AB Box 818 721 22 Västerås Street address: Betonggatan 1 Sweden Telephone: +46 21 15 48 00 www.bravida.se

Bravida Sverige AB 126 81 Stockholm Street address: Mikrofonvägen 28 Sweden Telephone: +46 8 695 20 00 www.bravida.se

SWEDEN SOUTH

NORWAY

DENMARK

Bravida Sverige AB Box 40 431 21 Mölndal Street address: Alfagatan 8 Sweden Telephone: +46 31 709 51 00 www.bravida.se

Bravida Norge AS Postboks 313 Økern 0511 Oslo Norway Street address: Østre Aker vei 90 Telephone: +47 2404 80 00 www.bravida.no

Bravida Danmark A/S Park Allé 373 2605 Brøndby Denmark Telephone: +45 4322 1100 www.bravida.dk

FINLAND

Bravida Finland Oy Ajomiehentie 1 00390 Helsinki Finland Telephone: +358 9 751 6060 www.bravida.fi

WE BRING BUILDINGS TO LIFE

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