Interim Report January–June 2015

Fredrik Strand, President and CEO Antti Heinola, CFO

July 23, 2015

Contents

o Group development o Cash flow and working capital o Financing o Market outlook and guidance for 2015 Summary of Q2/2015

Order backlog

° Order backlog grew by 3% compared to the previous year and remained on a par with the previous quarter.

Revenue EBITDA Working capital and operating cash flow ° Revenue was EUR 638.1 million ° EBITDA for Q2 amounted to in Q2, an increase of 8 percent EUR 22.0 million, up from the ° Working capital amounted to compared to the previous year. previous year. EUR 7.7 million (Q2/2014: ° The improved performance in ° The improved performance in 48.6). the second quarter compared to the second quarter compared to ° Operating cash flow before last year, is largely explained by last year, is largely explained by financial and tax items the write downs connected to the write downs connected to was EUR 1.8 million the project portfolio reviews the project portfolio reviews (Q2/2014: 4.1). done in 2014. done in 2014.

Caverion 3 Interim Report 1-6/2015 Key figures

EUR million 4−6/15 4−6/14 Change 1−6/15 1−6/14 Change 1−12/14

Order backlog 1,393.1 1,350.3 1,393.1 1,350.3 1,323.6

Revenue 638.1 588.4 1,201.5 1,179.7 2,406.6

EBITDA 22.0 2.1 36.2 11.7 67.5

EBITDA margin, % 3.4 0.4 3.0 1.0 2.8

Earnings per share, basic, EUR 0.08 -0.03 0.13 -0.02 0.22

Working capital 7.7 48.6 7.7 48.6 -19.3 Operating cash flow before 1.8 4.1 11.7 -7.0 113.5 financial and tax items Interest-bearing net debt 84.9 142.5 84.9 142.5 50.2

Personnel, average for the period 17,032 17,333 17,018 17,354 17,300

Caverion 4 Interim Report 1-6/2015 Group revenue up from the previous year

Group revenue ° Revenue was EUR 1,201.5 million in January−June, an EUR million increase of 2 percent compared

1−12/13: 2,544 1−12/14: 2,407 to the previous year.

1-6/12: X,XXX 688 653 660 638 ° Revenue increased in all 608 595 591 588 567 563 countries apart from .

° In Norway the full effect of the exit of one large technical installation and maintenance and IT services contract is now fully visible.

Revenue breakdown by country Revenue by business area EUR million 1−6/2015

(5%) Service and (1%) (5%) (-11%) maintenance 307 292 257 258 54% 230 242 245 217 (16%) (15%) (11%) (1−6/2014: 54%) 64 72 60 70 32 36 Projects Norway Other 46% (46%) countries

1−6/14 1−6/15

Caverion 5 Interim Report 1-6/2015 Service and maintenance: activity level remained stable

o The technical installation and maintenance market was Service and maintenance revenue Service and maintenance stable overall. revenue, EUR million o Successful in Industrial % of total Group Solutions in executing revenue seasonal shutdowns. 1−12/13: 1−12/14: o General interest in managed 1,409 (55%) 1,297 (54%) services and life cycle solutions continued to increase. 386 363 340 350 340 320 323 319 305 311

56% 56% 56% 54% 55% 54% 54% 53% 55% 53%

Caverion 6 Interim Report 1-6/2015 Several multi-million projects announced in Q2

° Finland: Project market is improving slowly and Caverion has been Project business active and able to secure some Project business revenue revenue, large new deals, especially in EUR million Industrial solutions. % of total Group ° Norway: Lower activity related to revenue the oil industry. ° Germany, Austria and Sweden: 1−12/13: 1−12/14: Demand remained favourable in a 1,134 (45%) 1,110 (46%) stable market environment. ° Denmark and Eastern Europe: Good development with new 302 310 clients. 290 298 268 274 268 270 262 253

44% 44% 46% 44% 45% 46% 46% 47% 45% 47%

Caverion 7 Interim Report 1-6/2015

Profitability on track to reach financial target

EBITDA, EUR million EBITDA margin, % o EBITDA for Q2 amounted to EUR 1−12/13: 70.9 (2.8%) 1−12/14: 67.5 (2.8%) 22.0 million, up from the previous year. 34,3

25,3 o 23,3 The improved performance in the 21,5 5,2 22,0 second quarter compared to last 3,9 3,7 year, is largely explained by the 12,9 3,8 14,2 3,4 9,4 9,6 write downs connected to the project portfolio reviews done in 2,0 2,1 2,5 1,5 1,6 2014. 0,4 o The performance during the rest of the year is considered to be more in line with last year.

EBITDA, EUR million (rolling 12m)

92,0

70,9 71,1 67,5 72,1 60,3 58,5

10−12/13 1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15

Caverion 8 Interim Report 1-6/2015 Stable order backlog development in Q2

° Order backlog grew by 3% Order backlog compared to the previous year EUR million and remained on a par with the previous quarter. Q1 Q2 Q3 Q4

+4% +3% 1 392 1 393 1 335 1 350

3/12 3/13 3/14 3/15 6/12 6/13 6/14 6/15 9/12 9/13 9/14 12/1212/1312/14

Caverion 9 Interim Report 1-6/2015 Examples of orders received in April−June

Dixi, Vantaa, Finland Deutsche Telekom Deutsche Telekom, Hamburg, Germany Caverion continues cooperation with YIT in Dixi’s second phase by Caverion provides building providing total technical solutions solutions to a new Deutsche for the Office and Commercial Telekom office complex in Centre. Caverion was also Hamburg. Caverion is responsible responsible for delivering the for project execution and covers building systems of the first phase the technical disciplines of heating which was completed and came and sanitation, cooling and into use in January 2015. electricity.

° Service areas: Design, Project Execution ° Service areas: Project ° Technical disciplines: All Execution building systems of the property ° Technical disciplines: Heating ° Contract value: ~EUR 7.6 and sanitation, Cooling, million Electricity ° Lifespan: Second phase is set ° Contract value: EUR 14.3 to be completed in 2017 million 2 ° Size: 4,000 m of commercial ° Lifespan: 6/2015−6/2016 2 premises and 8,000 m of office ° Size: 34,000 m² space

Caverion 10 Interim Report 1-6/2015 Examples of orders received in April−June

Metsä Fibre, Äänekoski, Finland Metsä Fibre Caverion will deliver a total of five pulp towers to Metsä Fibre’s new bioproduct plant. Two of these towers are among the largest in the world with a volume of 15,000 m3. The contract covers project management, design, materials purchase, prefabrication and installation. The bioproduct plant under construction is the largest investment in the history of wood-processing industry in Finland.

° Service areas: Design, Project Management ° Contract value: not disclosed ° Lifespan: The design and prefabrication will begin in 2015, installation will take place in 2016.

Metsä Fibre

Caverion 11 Interim Report 1-6/2015 Examples of orders received in April−June

Frankfurt School of Finance Frankfurt School of Finance Moss municipal property and Management, Frankfurt and Management company, Norway am Main, Germany Caverion delivers Managed Life Caverion implements a large cycle services for Moss municipal project with total technical property in the form of Energy solutions to the new campus of Performance Contracting (EPC). Frankfurt School of Finance and The aim is to reduce the energy Management. Caverion is consumption of these properties responsible for design and by 45% through upgrading, engineering and project execution. modernising and optimising the Campus will be equipped by building systems. Krantz Multifunctional AVACS sails. ° Service areas: Managed Life Cycle (Design & Engineering, ° Service areas: Design & Project Execution, Project Engineering, Project Execution Management, Managed ° Technical disciplines: Heating Operations) and sanitation, Ventilation and ° Technical disciplines: Heating, air conditioning, Cooling, Ventilation and air conditioning, Electricity, Automation, Security Automation and safety ° Contract value: not disclosed ° Contract value: not disclosed ° Lifespan: The first of three ° Lifespan: completed in June phases starts in June 2015 2017 ° Size: 91,000 m² ° Size: 32,500 m²

Caverion 12 Interim Report 1-6/2015 Examples of orders received in April−June

The Royal College of Music, Uppsala University Uppsala University, Stockholm, Sweden Uppsala, Sweden

Caverion provides building Caverion helps to turn one of systems on the new campus of Sweden’s oldest universities into a The Royal College of Music in modern office building by Stockholm and installs heating delivering building solutions. and sanitation, cooling and Caverion delivers ventilation & air electricity systems to the property. conditioning, electricity solutions as well as information and ° Service areas: Project communications to Uppsala Execution, Project Management University’s new office building, Segerstedthuset. ° Technical disciplines: Heating and Sanitation, Cooling, Electricity ° Service areas: Project ° Contract value: ~EUR 4.3 Execution, Project Management million ° Technical disciplines: Ventilation ° Lifespan: work on site underway and air conditioning, Electricity, and will be completed in 2016 Information and communication ° ° Size: 21,000 m2 Contract value: EUR 5.4 million ° Lifespan: completed during spring 2017 ° Size: 22,100 m²

Caverion 13 Interim Report 1-6/2015 17,113 employees at the end of June

During the period we Employees by country continued to develop a at the end of winning team: June 2015 ° Organisational management ° Talent management ° Leadership development ° International teams strengthened with key professionals and local trainees.

Finland 28% Continuous improvement Sweden 22% for occupational health and Norway 15% safety Germany 14% Safety and well-being of Denmark 6% employees as a key target Austria 4% Other countries 10%

Caverion 14 Interim Report 1-6/2015 Cash flow and working capital Firm grip on managing working capital

Working capital, o More than EUR 110 million of Working capital EUR million working capital released since 9/2013: Working capital to sales, % (LTM) ° Advances received stable at a level of EUR 176.9 million (7-9/2013: EUR 160.9 120 million) ° Improvement from more 100 5% efficient invoicing process

4% 64

46 3% 49 49 ° Efficient working capital 2% 2% 2% management enables us to develop our strategic business 8 mix. -1% -1% 0% ° Successful in Industrial Solutions in executing -19 -13 seasonal shutdowns. ° As the invoicing is done at the end of the project the working

4−6/13 7−9/13 10−12/13 1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 capital is reflected accordingly.

Caverion 16 Interim Report 1-6/2015 Rolling 12-month cash flow up to EUR 132 million

Operating cash flow before financial and tax items o Strong rolling 12-month cash EUR million flow supported by efficient management of working Rolling 12 months 134,4 132.2 capital 114.8 113,5 108.5 105.4 101.3 100.0 90.1

Development and investment o Continuous development and 20.5 investment in technologies, 7.2 11.1 9,8 4.1 1,8 processes and competences o Capex investments of EUR 5.5 million in Q2, mainly -11.2 -11.1 relating to IT and the development of common business processes.

1−3/13 4−6/13 7−9/13 10−12/13 1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15

Caverion 17 Interim Report 1-6/2015 Financing Balanced debt structure

Debt maturity New financing arrangement EUR million totalling EUR 200 million agreed in May 2015 o Strengthened debt maturity structure 40 o Five-year syndicated

22 22 20 unsecured revolving credit 14 10 facility of EUR 100 million o Five-year bilateral 2015 2016 2017 2018 2019 2020 unsecured term loans in total of EUR 100 million

Loan portfolio Interest rate type (after hedges) o Loan portfolio total: Banks 93% Fixed EUR 127.3 million interest 86% Insurance o Average interest rate companies 5% Floating after hedges: 1.41% interest Others 2% 14%

Caverion 19 Interim Report 1-6/2015 Strong balance sheet and liquidity

Development of net debt EUR million o Net debt remains in Q4 2014 level 194 190 143 132 o Strong cash position 104 86 85 enabled voluntary 50 50 repayment of gross debt by EUR 20 million

6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15

Gross debt to net debt Liquidity reserve EUR 161 million EUR million EUR million

Unused credit 41 42 facilities 119 86 85 Cash and cash equivalents Long-term borrowings Short-term Cash and cash Net debt 42 borrowings equivalents

Caverion 20 Interim Report 1-6/2015 Market outlook and guidance Market outlook for Caverion’s business in 2015

Technical installation Large projects Managed services

and maintenance o Large tenders for buildings o Need for new services and the

o Expected to be stable. and industry expected to demand for life cycle solutions o increase during the year. are expected to increase. Requirements for increased o o energy efficiency and better Low interest rates and Customers’ focus on their core indoor conditions and availability of financing are operations opens opportunities tightening environmental expected to support in outsourced operation and legislation support positive investments. maintenance mainly for public o market development. Demand for design & build of authorities, industries and total technical solutions is utilities. expected to develop favourably.

Overall changes in the operating environment due to growing uncertainty over the general macroeconomic development and mounting geopolitical tensions may lead to some expected cautiousness in project start-ups and service demand.

Caverion 22 Interim Report 1-6/2015 Guidance for 2015 reiterated

Revenue

Caverion estimates that the Group’s revenue will remain at the previous year's level.

EBITDA

Caverion estimates that the Group’s EBITDA margin for 2015 will grow significantly.

Caverion 23 Interim Report 1-6/2015 Dividend policy

Dividend pay-out at least 50 per cent of the net profit for the period.

o A dividend of EUR 0.22 per share was paid on April 2, 2015.

Caverion 24 Interim Report 1-6/2015

Additional slides 30,744 shareholders on June 30, 2015

Largest shareholders Owners by category by Change after Change after Shares, % of share shares owned March 2015, March 2015, pcs Capital pcs % 1. StructorMajor S.A. shareholders on June 28,201317,840,000 14.20 0 0.00% 2. Herlin Antti and companies controlled by him 13,370,180 10.65 140,000 1.06% Nominee registered and non-Finnish 3.34 3. Ilmarinen Mutual Pension Insurance Company 4,195,551 646,960 18.23% holders 35.6% (Mar 31, 2015: 34.7%) 4. Fondita funds 3,542,000 2.82 -30,000 -0.84% Households 5. Varma Mutual Pension Insurance Company 2,864,393 2.28 0 0.00% 19.1% (19.5%) 6. Nordea funds 2,821,323 2.25 -287,507 -9.25% General government 7. OP funds 2,310,518 1.84 -690,839 -23.02% 9.8% (9.3%) 8. Aktia funds 2,155,512 1.72 55,000 2.62% Financial and insurance corporations 9. The State Pension Fund 1,850,000 1.47 0 0.00% 13.8% (14.3%) 10. Danske Invest funds 1,748,568 1.39 106,700 6.50% 11. Elo Pension Company 1,344,468 1.07 0 0.00% Non-profit institutions 5.5% (5.8%) 12. SEB Investment Funds 1,304,605 1.04 51,355 4.10% 13. Evli funds 1,162,018 0.93 -81,687 -6.57% Non-financial corporations and housing corporations 14. Brotherus Ilkka 1,048,265 0.83 -137,475 -11.59% 16.3% (16.3%) 15. Etera Mutual Pension Insurance Company 757,446 0.60 0 0.00% 30,744 16. Säästöpankki funds 731,052 0.58 145,000 24.74% owners 17. Odin funds 526,311 0.42 0 0.00% (Mar 31, 2015: 18. Caverion Oyj 510,987 0.41 237 0.05% 31,489) 19. Danske Invest Finland Opportunities 430,000 0.34 80,000 22.86%

20. Föreningen Konstsamfundet rf 423,002 0.34 0 0.00% 20 largest, total 60,936,199 48.52 All shares 125,596,092 100.00

Caverion 27