investor presentation - caverion

Investor Presentation February 2020

Contents Business and strategy overview Focus on growth Reaching updated financial targets through strategy execution Group development Q4/2019 Market outlook and guidance for 2020

Business and strategy overview

Caverion ‒ a leading European service company o With Caverion’s services and solutions, built

environments become smart and sustainable. o Customers can trust our expert guidance during

the entire life cycle of their buildings, infrastructure or industrial sites and processes: from design & build to technical and industrial maintenance as well as facility management, including smart technologies and advisory services.

o Our customers are supported by over 16,000 professionals in 11 countries in Northern, Central and Eastern Europe.

o The Caverion share (CAV1V) is listed on Nasdaq Helsinki.

C O M P A N Y P R E S E N T A T I O N F E B R U A R Y 2 0 2 0 4

1) According to agreed calculation principles with the lending parties. As of 12/2019.

~16,273 employees (12/2019)

EUR 2.1bn Revenue 2019

11 countries (12/2019)

30,000 spaces in service

EUR 120.4m Adjusted EBITDA 2019

1.4x Net debt/EBITDA1

Ventilation and Air Conditioning

Information and Communication Services

Electricity Cooling Heating and Sanitation Process

Piping Industrial Installations

Security and Safety

Automation

Caverion is a technical forerunner and its disciplines cover the entire life cycle of buildings and industries, projects, and services

Sweden 21%

Finland 18 %

Norway 17%

Germany 17%

Austria 9%

Industrial Solutions

10%

Denmark 5%

Other countries

3%

Revenue by division

(2019)

5

Fit and Growth

Safety | Quality

MISSION

Smart solutions and happy customers First choice in digitalising environments

VISION

MUST-HAVES Step ahead | Cooperation | Responsibility | High performance

VALUES

Excellent customer experience Best solutions Top performance

at every level Winning team

MUST-WINS

Caverion is a leading service company and a selective master of projects. We are building performance for the whole life cycle of buildings, industries and infrastructure.

We are a technology forerunner providing excellent customer experience. We will grow faster than the market in services.

DIGITALISATION SUSTAINABILITY

C O M P A N Y P R E S E N T A T I O N F E B R U A R Y 2 0 2 0

-22.4 -8.7 21.6

143.7

2016 2017 2018 2019

Fit for Growth journey 2017-19: Shift in business mix and turnaround in profitability taking place

C OMP A N Y P R E S E N T A T ION FE B R U A R Y 2020 6

15.6 25.8

53.4

120.4

0.7%

1.1%

2.4%

5.7%

2016 2017 2018 2019

Adjusted EBITDA, EUR million

Adjusted EBITDA margin, %

1,131 1,209 1,213 1,275

1,234 1,067 991 848

2016 2017 2018 2019

Services ProjectsNote! 2016: EBITDA excl. restructuring costs; 2017-2019: Adjusted EBITDA. The same figures have been used for the presentation of the respective margins. Comparative figures for 2018 (or prior periods) have not been restated according to IFRS 16.

2,364 2,204 2,276

Services share:*

Group revenue, EUR million

* Change in reporting of business unit revenue in 2018

2,123

53.1% 47.8% 55.0% 60.0%

*Cash flow from operations is adjusted for the impact of EUR 42.1 million German fine and related costs.

Comparative figures for 2018 (or prior periods) have not been restated according to IFRS 16.

42.1*

63.7

Operating cash flow before financial and tax items LTM, EUR million

Focus on growth

8 C O M P A N Y P R E S E N T A T I O N F E B R U A R Y 2 0 2 0

Good progress in Fit for Growth strategy

• The critical phase of turnaround is behind us

• We are delivering increasing profits and cash flow

• We have started to invest in growth, e.g. in our

digital platform, sales, brand, offering as well as

M&A

Focus will remain on efficiency improvement

• Significant potential still in pricing, productivity

and procurement

• Data enabled efficiency

• Transforming our operating model

We have entered the Growth phase

Digitalisation

Sustainability

Megatrends have developed in our favour and support our growth

C O M P A N Y P R E S E N T A T I O N F E B R U A R Y 2 0 2 0 9

Continuous trend towards complexity of networked and integrated technologies that fewer players can manage

Development since 2017

Data-driven analytics and new technologies emerging to enable smart buildings and cities

Changes in EU legislation driving growth, increased focus on sustainability and carbon neutrality

Security and safety are becoming even more important

Increasing technology

Energy efficiency

Digitalisation

Urbanisation

Key future themes

Caverion Sustainability Highlights 2019 The most sustainable building technology service company in Northern Europe in a study* by

Environmental handprint • Significant customer energy savings • Increased number of sustainable

installations for customers • Solar panel and LED lighting

installations • In Norway alone over 11,000 electric

vehicle charging points were installed

Environmental footprint • Service vehicle fuel efficiency

continued to improve • CO2 emissions of service vehicle fleet

(tCO2 / revenue mEUR) 7.6 (2018: 8.2)

• Updates on more environmentally friendly service and business car fleet

• Implementation of revised SCoC (Supplier Code of Conduct) continued. Mandatory appendix for new and updated agreements.

• Caverion’s business is widely certified by the following certificates:

• Quality (ISO 9001: 100% of Group revenue)

• Environment (ISO 14001: 90%) • Safety (OHSAS 18001 /

ISO 45001: 90%).

Code of Conduct completion rate (%) 96 (2017: 93)

Accident frequency rate (< 5) 5.3 (2018: 5.2)

Supplier code of conduct sign-off rate (%) 55 (2018: 48)

Sick leave rate on target level (< 5) 4.4 (2018: 4.5)

Company Presentation February 2020 10 *2019 Carbon Clean 200

Caverion is well positioned to support customers' sustainability and CSR Caverion Sustainability Framework − Sustainability targets to be published in 2020

C O M P A N Y P R E S E N T A T I O N F E B R U A R Y 2 0 2 0 1 1

• We want to make sure that people return home healthy after a day’s work, by focusing on indoor air quality and providing a healthy and safe working environment.

• The easiest way to reach carbon neutrality goals, without carbon credits, is improving energy efficiency of the built environment, which we can deliver with our Energy and Environmental solution.

• We guarantee a responsibly managed service chain for our customer, by service management, processes and Code of Conduct.

• With SRI, Smart Solutions and SmartView, we can develop our customers’ smart sustainability, reporting and support fact-based investment decisions in cooperation.

• With a life-cycle approach to the management of existing properties, we can optimise the life-cycle costs and also help sustain the performance of the building, improving the sustainable corporate citizenship.

• We can help our customers to minimise waste and emissions by continuously developing new disruptive clean technology innovations (e.g. CO2 cooling technology and demand response solutions).

Fragmented market supporting growth Lots of feasible M&A opportunities Caverion has a strong market position and is ranked among the top-5 players in all of its largest operating countries. Market is still very fragmented in these countries. Caverion is also the leading industrial solutions company in Finland.


Germany

1. SPIE 2. Apleona 3. Strabag PFS 4. Engie 5. Caverion

Austria

1. Ortner 2. Caverion 3. Engie 4. EQOS Energie 5. G. Klampfer

Norway

1. GK 2. Bravida 3. Caverion 4. Coor 5. OneCo

Denmark

1. Kemp & Lauritzen

2. Bravida 3. Kirkebjerk 4. Lindpro 5. Caverion

Finland

1. Caverion 2. Are 3. Consti 4. Bravida 5. Quatro Mikenti

Sweden

1. Bravida 2. Assemblin 3. Vinci Energies

Nordic 4. Caverion 5. Instalco

200-500mEUR Revenue 50-200 mEUR More than 500mEUR

Industry (Fin)

1. Caverion 2. Empower 3. Maintpartner 4. Bilfinger Oy 5. Quant

#1 #3 #4

#5

#5

#2

#4

Caverion estimate of overall market growth

Caverion enjoys a strong competitive position Caverion has a strong competence in all these businesses


+ many local players and potential new entrants (construction, soft FM and Design & Engineering companies)

Facility management Industrial services Technical installation & maintenance

3% p.a.

We are back on the acquisition track Important acquisitions of Maintpartner, Huurre and Pelsu closed in Q4/2019

Industrial operation and maintenance service provider operating in sectors such as energy, chemicals, metal, food and manufacturing industries.

A leading supplier of energy-efficient CO2 based refrigeration systems and related refrigeration automation solutions


Specialised in property security consulting services and easy-to-use digital web and mobile services. Market leader in its field in Finland.

Maintpartner sites in Finland, Poland and Estonia

Huurre Refrigeration Solutions is operated in two companies in Finland and Sweden.

Huurre Maintpartner

Source: Acquired companies, Caverion

Pelsu

Revenue 2019 EURm

Employees 2019

130 1,414

51 271

The acquisitions completed in 2019 will incur one-off integration costs especially in the first half of 2020.

Long-term customer partnerships


Digital Solutions Smart Technologies

Sources of future growth for Caverion

Advisory & Outcome based Solutions


Delivering sustainable outcomes and value in a smart city Energy efficiency, CO2 reduction, safe and healthy environment, optimal lifecycle costs and asset value

Building Management System connected to Remote Center

Security cameras & Access control

Parking solutions

Road automation and telematics

Solar energy Green cooling and energy center

Underground waste system

eMobility charging points

Clean room for laboratory

IoT & Analytics for predictive maintenance and optimal conditions

Emergency rescue solutions

Demand response

Efficient energy services


DIGITAL SOLUTIONS

We are building a unique digital platform to deliver sustainable outcomes and value

CCTV Safety & Security

Water Lighting Ventilation Heating Cooling eMobility Renewable energy

Elevators & Escalators

• Sensors input • Other external data &

platforms in ecosystem • Demand response

• Remote center • Help desk • Smart dispatching • Technicians’ mobility

• Advisory & Outcome based solutions • Caverion SmartView

Ability to interface with multiple systems

Building Management System

Open Digital

Platform Analytics & AI

Reaching updated financial targets through strategy execution

4 3 2

Financial targets (mid-term)


* EBITA is defined as Operating profit + amortisation and impairment on intangible assets. Adjustments according to defined Items affecting comparability (IAC). ** According to agreed calculation principles with lending parties.

Cash flow

Profitability

Growth

Debt leverage

Cash conversion > 100%

Adjusted EBITA* > 5.5% of revenue (Conversion from Adjusted EBITDA > 8% target)

Organic revenue growth > 4% p.a. over cycle

Net debt / EBITDA** < 2.5x

• Full conversion of EBITDA into cash flow

• Sustainable profitability target covering also depreciations

• Attractive level of return on equity

• Services revenue growth > market growth • Services generate > 2/3 of Group revenue • Complemented with bolt-on M&A in selected

growth areas and complementary capabilities

• Strong balance sheet and financial flexibility • Capacity to make investments and

acquisitions and pay out dividends

1

Summary of Caverion’s strategic Must-Wins

• Professional sales management • Service culture • Drive increased customer loyalty

• Roll out sustainable solutions and digital services • Boost profitable growth in smart technologies & FM • Roll out Caverion brand story and new offering • Drive selectivity and productivity strategy in Projects

• Service performance management • Project performance management • Transformation in procurement • Fixed cost performance management

• Building Performance culture • Right people in right places • Professional growth

Strategy execution

Excellent Customer Experience

Best Solutions

Top Performance at Every Level

Winning Team


Fit for Growth journey 2017-19: Cash flow improved to target level Substantial cash release from working capital. FY 2019 cash conversion 139.5%


Working capital EURm

Operating cash flow before financial and tax items LTM, EURm

Completed in the Fit phase • Tight weekly follow up of invoicing and

receivables • Focus on resolving old risk projects • Reduced investment levels • Invoicing related KPIs and competitions

at various levels of the organisation To continue in the Growth phase • Centralised management of invoicing-

related processes to be rolled out across all divisions

• Automation of invoicing and rest of order to cash processes

• Investment focus will be on digitalisation and growth investments including M&A

* 2019 figures according to IFRS16

-70.0 EURm

+159.5 EURm

Fit for Growth journey 2017-19: Tight cost control has paid off Successful streamlining achieved to adjust to lower volumes

669.7

524.2

0

100

200

300

400

500

600

700

800

Q1 2017 Q4 2019


Materials and supplies LTM, EURm

-21.7%

990.5

868.9

0

200

400

600

800

1000

1200

Q1 2017 Q4 2019

-12.3%

Personnel expenses LTM, EURm Completed in the Fit phase

• Restructurings and Fit for Growth turnaround programs

• Fixed cost reduction programs, e.g. IT, fixed personnel

• Premises consolidation • Procurement and material logistics

performance management To continue in the Growth phase • Further optimised personnel

planning and resource utilisation in operations

• Further benefits from harmonised processes and centralised support and development functions

• Optimised operating model

Reallocation of capital to achieve sustainable profitable growth Illustrative

Investment capacity created through • Profitable growth • Strong cash conversion • Performance management actions • Further fixed cost saving opportunities • Procurement/supply chain optimisation • Optimised operating model


Time 2017 – H1/2019 H2/2019 –

M&A

Dividends

Deleveraging

Investments Dividends

M&A

Organic investments Investments in organic growth, including digitalisation and offering development

Dividend policy: Payout ratio of at least 50% of the result for the year after taxes, however, taking profitability and leverage level into account.

M&A in selected growth areas and complementary capabilities

Group development Q4/2019

Operating environment 2019 Services business 60% of Group revenue, 61.5% in Q4

25

Projects ° The market for Projects remained stable but the sentiment started to weaken. ° In the residential construction market segment, there were indications of the

market slowing down. In non-residential construction segment, more relevant for Caverion, the market remained stable, with the exception of the commercial construction segment in Sweden.

° Demand for total technical deliveries, life cycle projects and different types of partnership projects such as alliance projects has been increasing.

° Requirements for increased energy efficiency, better indoor climate and tightening environmental legislation are increasing the costs of investing in building systems.

Services ° The demand for Services continued being strong. ° Trend towards a deeper collaboration between customers and service providers

to gain business benefits instead of mere cost savings ° International customers are looking for unified operating models across

countries, especially in the Nordic region. ° Increasing interest for services supporting sustainability, such as energy

management and advisory services

60.0% (55.0%)

40.0% (45.0%)

Services business unit

Projects business unit

Revenue breakdown 2019 (2018)

Company Presentation February 2020

Summary of 2019 Result targets achieved in Q4, Caverion’s turn to growth started

26

Order backlog ° Order backlog amounted to EUR

1,670.5 (1,494.3) million at the end of December, up by 11.8 percent y-o-y, supporting future organic growth.

° Order backlog increased both in Services and Projects compared to previous year.

Revenue ° Revenue EUR 2,123.2 (2,204.1)

million in 2019, down by 3.7% (- 2.6% in local currencies).

° Services +5.1% and Projects -14.4% (+6.4% and -13.6% in local currencies)

° Revenue increased to EUR 589.0 (587.6) million in Q4/2019.

Profitability* ° Adjusted EBITDA improved to EUR

120.4m (53.4m), or 5.7 (2.4) per cent of revenue.

° EBITDA improved to EUR 103.0m (-8.8m), margin 4.8% (-0.4%).

° EPS was EUR 0.14 (-0.40).

Cash flow* and leverage ° Operating cash flow before financial

and tax items improved to EUR 143.7 (21.6) million in 2019.

° Cash flow after investments, including the payments for the acquisitions completed, was EUR 64.5 (1.4) million.

° Net debt/EBITDA** was 1.4x (0.2x).

Other events in 2019 ° Updated financial targets and growth

strategy launched at the CMD in 11/2019. ° Maintpartner and Huurre acquisitions

closed in the end of November, Pelsu in October.

° EUR 75 million unsecured senior bond issued during Q1, partial redemption of hybrid notes.

* The comparative figures have not been restated to comply with IFRS 16. ** Based on calculation principles confirmed with the lending parties.


° Q4 revenue increased to EUR 589.0 (587.6) million, up by 0.2% from the previous year (+1.6% in local currencies).

° Services +7.5% and Projects -9.5% (+9.1% and -8.5% in local currencies).

° Revenue includes Maintpartner and Huurre acquisitions as of December.

° Revenue in January-December was EUR 2,123.2 (2,204.1) million, down by 3.7% from the previous year (-2.6% in local currencies).

° Services +5.1% and Projects -14.4% (+6.4% and -13.6% in local currencies).

° Revenue increased in Austria and Finland, while it decreased in other divisions.

° In local currencies, revenue increased also in Sweden.

526.8 564.8 524.9

587.6

514.4 512.3 507.5

589.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

377

129

443 437

229 336

177 75

360

109

435 355

205

384

200

74

Norway Denmark Sweden Germany IndustrialSolutions

Finland Austria Other countries

1-12/2018 1-12/2019

Revenue development Caverion’s turn to growth started in Q4

27

Group revenue, EUR million

Revenue breakdown by division, EUR million

2018: 2,204.1

-15% -5% -2% -19%

2019: 2,123.2

+13% -3% -10% +14%


° Q4 adjusted EBITDA improved to EUR 47.0 (11.0) million with a margin of 8.0% (1.9%). ° All divisions improved their results compared to the

previous year. ° Services business had an excellent last quarter with

most divisions improving their margins. ° Projects business improved its performance. Excluding

the write-down made for the one remaining risk project, the Projects business adjusted EBITDA was positive.

° Q4 EBITDA improved to EUR 35.9 (-1.3) million

and was 6.1 (-0.2) percent of revenue.

° Adjusted EBITDA in 2019 improved to EUR 120.4 (53.4) million, or 5.7 (2.4) per cent of revenue.

28

Profitability development Result targets achieved in Q4

9.9

-31.7

14.3

-1.3

22.6 9.1

35.3 35.9

1.9

-5.6

2.7 -0.2 4.4 1.8

7.0 6.1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

EBITDA, EUR million EBITDA margin, %

10.9 12.9 18.5

11.0

27.1

10.0

36.2 47.0

2.1 2.3 3.5

1.9

5.3

2.0

7.1 8.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Adjusted EBITDA, EUR million Adjusted EBITDA margin, %

2018: 53.4 (2.4%)

2018: -8.8 (-0.4%)

Adjusted EBITDA = EBITDA before items affecting comparability (IAC)

Comparative figures for 2018 have not been restated according to IFRS 16.

2019: 120.4 (5.7%)

2019: 103.0 (4.8%)


12.2

-17.2 -38.8

46.8 27.0 25.2

-2.5

24.4 4.2 3.2 0.9 9.2 4.4 3.8 5.7

59.5

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Cash flow development Operating cash flow before financial and tax items improved to EUR 143.7 (21.6) million

29

° Operating cash flow before financial and tax items improved to EUR 143.7 (21.6) million in 2019. ° In Q4/2019, operating cash flow

improved to EUR 80.6 (53.7) million.

° Free cash flow improved to EUR

74.0 (2.9) million and cash flow after investments to EUR 64.5 (1.4) million in 2019. Both include the payments for the acquisitions completed.

° Capex was EUR 73.4m (17.5m) in 2019. ° IT investments: EUR 9.4m (7.3m) ° Other investments incl.

acquisitions: EUR 64.0m (10.2m)

Free cash flow = Operating cash flow before financial and tax items – Taxes paid – Net cash used in investing activities (net, including acquisitions and disposals). Comparative figures for 2018 have not been restated according to IFRS 16.

19.8

-15.0 -37.0

53.7 30.1 29.1

3.8

80.6

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19

Operating cash flow before financial and tax items, EUR million

Capex, EUR million Free cash flow, EUR million

2018: 21.6

3.8*

* Cash flow from operations is adjusted for the impact of EUR 40.8 million German fine.

2019: 143.7


Continued efforts to improve working capital have paid off Improvement in Finland, Austria, Sweden, Industrial Solutions and particularly in Germany

30

-54.6

-100.9 -110

-90

-70

-50

-30

-10

10

30

50

Norway Finland Austria Sweden Denmark Other Countries IndustrialSolutions

Germany Group

Working capital by division EUR million Q4/2018 Q4/2019


-35.9

-15.4

Refinancing of bank loans in Q1 2019 ° EUR 50 million term loan matures in

February 2022 ° EUR 100 million unsecured revolving

credit facility matures in February 2022, historically fully undrawn

° Both facilities include a one-year extension option

EUR 75m senior unsecured 4-year bond issued in March 2019

21.3 20.8 22.6 21.5 24.6 24.0

26.2 24.6

Q1/19 Q2/19 Q3/19 Q4/19

Equity ratio, %Equity ratio excl. IFRS 16, %

75.1 77.3 79.5 73.6

12.5 12.0 19.1 13.7

Q1/19 Q2/19 Q3/19 Q4/19

Gearing, %Gearing excl. IFRS 16, %

31

Debt maturity structure, EUR million

Credit ratios and debt maturity structure Credit ratios in 2019 were affected by IFRS 16 and the redemption of hybrid notes in Q1/2019

Net debt excl. lease liabilities EUR 31.5 (6.9) million on 31 December 2019 ° Total gross interest-bearing liabilities of EUR 261.9 million, of which lease

liabilities (IFRS 16) EUR 136.9 million and other interest-bearing debt of EUR 125.0 (58.1) million

° Cash and cash equivalents EUR 93.6 (51.2) million Net debt incl. lease liabilities EUR 168.4 million on 31 December 2019 EUR 34 million redemption of hybrid bond notes carried out in March 2019

50 75

1 36 35

24 16

27

100

2020 2021 2022 2023 2024->

RCF (undrawn)Lease liabilitiesExisting debt

Debt maturity structure 31 December 2019, EUR million


32

59

131 170

146 165

99 141

64 47

10 50

7 27 25 42 98

0.7x

2.1x 2.8x 2.8x

3.7x 3.4x 4.1x

2.9x

1.8x

0.2x 1.1x

0.2x 0.7x 0.8x 1.1x 1.4x

Net debt excl. lease liabilities (EURm) Net debt (excl. lease liabilities) /EBITDA (12m)

125

31

0

94

Long-term borrowings Short-term borrowings Cash and cashequivalents

Net debt

Gross debt to net debt on 31 December 2019 (EURm) excluding lease liabilities

* The Net Debt/EBITDA for Q1-Q3/16 has been calculated excluding restructuring costs. ** The Net Debt and the Net Debt/EBITDA for Q4/16 –Q4/19 have been calculated according to confirmed calculation principles with lending parties.

Financial covenant Net debt/EBITDA ° Net debt/EBITDA in Q4/2019 was 1.4x according to the

confirmed calculation principles with lending parties. The covenant level shall not exceed 3.5x.

° The confirmed calculation principles exclude the effects of the IFRS 16 standard and contain certain other adjustments such as treating the hybrid notes as debt as of December 2019 and excluding the German anti-trust fine and related legal and advisory fees.

Strong liquidity position on 31 December 2019 ° Cash and cash equivalents EUR 93.6 (51.2) million. ° In addition, Caverion had undrawn revolving credit facilities

amounting to EUR 100.0 million and undrawn overdraft facilities amounting to EUR 19.0 million.

° Net financing expenses for 1-12/2019 EUR -8.4m (-7.9m) ° Includes EUR 5.2m interest cost on leases and EUR

1.2m FX gain from internal loan denominated in euros in Russia

° Average interest rate (excluding IFRS 16 lease liabilities) 2.96% (2.59%)

Low leverage level and strong liquidity


Market outlook and guidance for 2020

50

75

100

125

150

Finland Sweden GermanyDenmark Austria

50

75

100

125

150

Finland Sweden GermanyDenmark Austria

EUROPEAN FACILITY SERVICE MARKET GROWTH OUTLOOK

ECONOMIC SENTIMENT INDICATOR (2008 – 12/2019)

Sources: European Commission, December 2019; Lünendonk® Study Q3 2019: “Facility service companies in Germany”.

CONSTRUCTION CONFIDENCE INDICATOR (2008 – 12/2019)

Underlying market stable Indicators in main Caverion countries slightly declining but still on a satisfactory level

The underlying services demand is expected to remain good.

Forecasts of all companies; averages.

Company Presentation February 2020 34

4.7% 4.3% 4.4%

2019E 2020E 2021-2025E

Guidance for 2020 and dividends

35

Guidance for 2020 In 2020, Caverion Group’s revenue (2019: EUR 2,123.2 million) and adjusted EBITA (2019: EUR 67.2 million) will grow compared to 2019.

Dividend proposal The Board of Directors proposes to the AGM that a dividend of EUR 0.08 per share be paid for the financial year 2019. Dividend policy: Dividend pay-out at least 50% of the result for the year after taxes, however, taking profitability and leverage level into account.

° EBITA = Operating profit + amortisation and impairment on intangible assets

° Adjusted EBITA = EBITA before items affecting comparability (IAC)


Conclusions

Our Fit for Growth strategy launched in 2017 is working well

Digitalisation will revolutionise our industry and sustainability needs are growing rapidly – We are well positioned

Growth fundamentals already created, numerous sources of profitable growth enabled by our existing strengths

1.

3.

2.

Profitability (Adjusted EBITA-%)

Leverage (Net debt/EBITDA**)

Growth Organic growth

> 4% p.a. 2019: Services growth 6.4% in local currencies, share of Services 60.0%

Cash conversion*

> 100% 2019: 139.5%

> 5.5% 2019: 3.2% Q4/2019: 5.7%

< 2.5x 2019: 1.4x

* Operating cash flow before financial and tax items / EBITDA ** Based on calculation principles confirmed with the lending parties. The

confirmed calculation principles exclude the effects of the IFRS 16 standard and contain certain adjustments. If IFRS 16 adjusted figures were applied in the calculation, the target would be adjusted accordingly.

Additional slides

Key figures

EUR million Q4/19 (IFRS 16)

Q4/18 (non IFRS 16) Change 1-12/19

(IFRS 16) 1-12/18

(non IFRS 16) Change

Order backlog 1,670.5 1,494.3 11.8% 1,670.5 1,494.3 11.8% Revenue 589.0 587.6 0.2% 2,123.2 2,204.1 -3.7% Adjusted EBITDA 47.0 11.0 327.4% 120.4 53.4 125.5% Adjusted EBITDA margin, % 8.0 1.9 5.7 2.4 EBITDA 35.9 -1.3 103.0 -8.8 EBITDA margin, % 6.1 -0.2 4.8 -0.4 Adjusted EBITA 33.7 9.6 251.0% 67.2 46.8 43.5% Adjusted EBITA margin, % 5.7 1.6 3.2 2.1 EBITA 22.5 -2.7 49.8 -15.4 EBITA margin, % 3.8 -0.5 2.3 -0.7 Operating profit 18.9 -8.7 35.3 -35.9 Operating profit margin, % 3.2 -1.5 1.7 -1.6 Earnings per share, undiluted, EUR 0.11 -0.12 0.14 -0.40 Operating cash flow before financial and tax items 80.6 53.7 50.2% 143.7 21.6 Cash conversion (LTM), % 139.5 n.a. Working capital -100.9 -54.6 -84.8% Interest-bearing net debt 168.4 6.9 Net debt/EBITDA 1.4 0.2 Gearing, % 73.6 2.7 Equity ratio, % 21.5 30.2 Personnel, end of period 16,273 14,950 8.8%

38 Comparative figures for 2018 have not been restated according to IFRS 16. Company Presentation February 2020

Guidance terminology

Company Presentation February 2020 39

(*Joined the Group Management Board in or after 2018)

Winning team in place: Group Management Board


Knut Gaaserud Norway

Frank Krause* Germany

Manfred Simmet Austria

Ville Tamminen Finland (& Baltics)

Juha Mennander* Sweden

Thomas Hietto Deputy CEO and Head of Services

Martti Ala-Härkönen Finance, Strategy and IT

Minna Schrey-Hyppänen HR and Safety

Ari Lehtoranta President and CEO

Michael Kaiser* Head of Projects

Anne Viitala Legal and Governance

Carsten Sørensen* Tanska

Kari Sundbäck* Transformation and Supply Operations (& Russia)

Elina Engman* Industrial Solutions

Divisions

Directly registered shareholders on 31 January 2020

Nominee reg. and non-Finnish33.2% (Dec 31: 33.1%)

Households16.4% (16.5%)

General government13.7% (13.6%)

Financial and insurancecorporations 10.8% (10.6%)

Non-profit institutions3.2% (3.3%)

Non-financial corporations andhousing corporations22.8% (22.9%)

Sector distribution (1/2020)

25,362 owners

Largest shareholders

Shares, pcs

% of shares

Change after 12/2019, pcs

Change after 12/2019, %

1 Herlin Antti* 20,503,753 14.76 0 0.00 2 Fennogens Investments SA (Ehrnrooth family)** 14,169,850 10.20 0 0.00 3 Varma Mutual Pension Insurance Company 11,138,407 8.02 0 0.00 4 Mandatum companies 5,567,001 4.01 -200 0.00 5 Ilmarinen Mutual Pension Insurance Company 4,057,142 2.92 0 0.00 6 Caverion Oyj 2,849,360 2.05 0 0.00 7 Säästöpankki funds 2,623,375 1.89 -125,000 -4.55 8 Nordea funds 2,242,050 1.61 -19,818 -0.88 9 Evli funds 2,055,000 1.48 445,000 27.64

10 The State Pension Fund 1,850,000 1.33 0 0.00 11 Elo Pension Company 1,739,345 1.25 87,123 5.27 12 Aktia funds 1,558,099 1.12 0 0.00 13 Fondita funds 1,540,000 1.11 -100,000 -6.10 14 Brotherus Ilkka 1,048,265 0.75 0 0.00 15 Ari Lehtoranta*** 906,851 0.65 0 0.00 16 Kaleva Mutual Insurance Company 739,025 0.53 0 0.00 17 Sinituote Oy 672,400 0.48 0 0.00 18 Wihuri funds 283,000 0.20 0 0.00 19 Mikael Koivurinta Jan 249,746 0.18 0 0.00 20 Brotherus Monica 244,000 0.18 0 0.00

20 largest, total 76,036,669 54.73 All shares 138,920,092 100.00

*) incl. Security Trading Oy and directly held shares. **) As a result of the reorganisation of Ehrnrooth family's shareholding in Caverion on 28 November 2019,Structor S.A. sold its entire shareholding (12.64% of shares) to its parent company Fennogens Investments S.A. and other family-owned investment companies. The shareholding in Caverion that was held by Structor S.A. remained fully in the possession of the same ultimate beneficiary owners. ***) incl. Voluntas Investment Oy and directly held shares. Note! Solero Luxco S.A.R.L (Triton) holding decreased from 5.20 % of shares to 0%, based on a flagging notification as per 17 February 2020 (previous public holding 11,172,223 shares (8.04% of shares) as per 10/2019.

Information based on the list of 300 largest holders from Euroclear Finland Ltd.

41 Company Presentation February 2020

investor presentation - caverion

Documents