0 Otsikko Annual Review 2020 CONSOLIDATED PARENT COMPANY IN BRIEF BOARD OF DIRECTORS’ REPORT KEY FIGURES FINANCIAL STATEMENTS FINANCIAL STATEMENTS AUDITOR’S REPORT Table of contents In Brief ...................................................................................3 Disclosure regarding non-financial information ..............23 Calculation of key figures...................................................28 Board of Directors’ Report .................................................12 Key figures...........................................................................27 Shareholders .......................................................................29 Subsidiaries.........................................................................30 AUDITED Consolidated financial statements, IFRS ..........................31 3 Working capital and deferred taxes .........................45 5.5 Financial risk management................................................67 Consolidated income statement.................................................31 3.1 Inventories ..............................................................................46 5.6 Derivative instruments........................................................69 Consolidated statement of comprehensive income .............31 3.2 Trade and other receivables ..............................................46 5.7 Investments in associated companies and joint Consolidated statement of financial position .........................32 3.3 Trade and other payables...................................................47 ventures...................................................................................70 Consolidated statement of cash flows......................................33 3.4 Provisions................................................................................48 5.8 Employee benefit obligations............................................71 Consolidated statement of changes in equity ........................34 3.5 Deferred tax assets and liabilities ...................................49 5.9 Lease agreements ................................................................74 5.10 Commitments and contingent liabilities........................75 Notes to the consolidated financial statements...............36 4 Business combinations and capital expenditure.....52 4.1 Acquisitions and disposals.................................................53 6 Others.........................................................................76 1 Basis of preparation ..................................................36 4.2 Goodwill ...................................................................................56 6.1 Key management compensation .....................................77 4.3 Tangible and intangible assets .........................................58 6.2 Share-based payments.......................................................78 2 Financial performance...............................................39 6.3 Related party transactions.................................................80 2.1 Revenue from contracts with customers......................40 5 Capital structure ........................................................61 2.2 Costs and expenses..............................................................41 5.1 Capital management............................................................62 Parent company financial statements, FAS......................81 2.3 Depreciation, amortisation and impairment.................42 5.2 Shareholders’ equity ............................................................62 2.4 Financial income and expenses........................................43 5.3 Change in net debt................................................................64 Signatures to the Board of Directors’ report and Financial 2.5 Income taxes ..........................................................................43 5.4 Financial assets and liabilities by category ...................65 statements and Auditor’s note ..........................................93 2.6 Earnings per share................................................................44 Auditor’s report...................................................................94 1 Basis of preparation 2 Financial performance 3 Working capital and deferred 4 Business combinations and 5 Capital structure 6 Others taxes capital expenditure 2 Caverion Annual Review 2020 CONSOLIDATED PARENT COMPANY IN BRIEF BOARD OF DIRECTORS’ REPORT KEY FIGURES FINANCIAL STATEMENTS FINANCIAL STATEMENTS AUDITOR’S REPORT Caverion – Building Performance By making built environments smart and sustainable, Caverion Ambitious sustainability targets enables performance and people’s wellbeing. Customers can trust our expert guidance during the entire life cycle of their Caverion published its first sustainability targets in 2020. Our buildings, infrastructure or industrial sites and processes: from target is to create sustainable impact through our solutions, with advisory services to design & build, projects, technical and a positive carbon handprint 10 times greater than our own industrial maintenance as well as facility management. carbon footprint by 2030. Going forward, we are actively striving to make the sustainability impacts visible and measurable to our Our customers are supported by over 15,000 professionals in 11 customers throughout our offering. countries in Northern, Central and Eastern Europe. Our revenue in 2020 was approximately EUR 2.2 billion. Caverion’s shares are Caverion has a strong market position and is ranked among the listed on Nasdaq Helsinki. Caverion’s head office is located in top 5 players in the building solutions market measured by Vantaa, Finland. revenue in most of its operating countries. In future, we see good growth prospects especially in smart and sustainable technology areas, including Building Automation, Refrigeration, and Security and Safety. Our business units: Services and Projects Services Projects Services and Projects for industry Caverion is a partner for its customers within built environment Caverion delivers building technology and infrastructure projects Caverion is improving efficiency and minimising losses and services, from technical maintenance and property management for new building investments and modernisations. As a lifecycle emissions from production processes by measuring, monitoring, services to solutions based on smart technologies and advisory partner with design&build expertise, we install all building maintaining, operating and modernising production. When services. Being a forerunner in sustainability, digitalisation and technologies. We enable our customers’ building performance customers’ production facilities operate as planned, production technology, supported by a wide local service network, we are with smart and energy efficient solutions, always focusing on disruptions, uncontrolled emissions and waste are eliminated. able to offer our customers sustainable, flexible and high-quality connectivity and human-centric design. Our customers count on services. Our focus is on delivering impactful outcomes for our us for future-proof installations and technical solutions that customers: carbon footprint decrease, energy savings, improved meet regulations, safety and sustainability requirements of the end-user satisfaction and optimal building conditions. future. Our goal is to be a leading service company and customers’ As a selective master of projects, our goal is to set the optimal trusted partner, and to profitably grow faster than the market. foundation for a long-term customer relationship which we further grow with our service capabilities throughout the entire lifecycle. 3 Caverion Annual Review 2020 CONSOLIDATED PARENT COMPANY IN BRIEF BOARD OF DIRECTORS’ REPORT KEY FIGURES FINANCIAL STATEMENTS FINANCIAL STATEMENTS AUDITOR’S REPORT 4 Caverion Annual Review 2020 CONSOLIDATED PARENT COMPANY IN BRIEF BOARD OF DIRECTORS’ REPORT KEY FIGURES FINANCIAL STATEMENTS FINANCIAL STATEMENTS AUDITOR’S REPORT FROM THE CEO From the CEO Our target remains to come out of the corona crisis as a stronger company than entering it. In 2020, we continued our Fit for Growth strategy implementation and streamlined and adjusted our operations proactively as the pandemic effected the market environment. At the same time, we continued to invest in sustainable solutions for Smart Cities. A major share of EU and governmental economic stimulus investments is directed to make cities more sustainable. Caverion is well positioned to support its customers’ sustainability efforts. The best way to fight a crisis is to focus Climate change continues to be the biggest threat our earth is facing. on helping customers through it In November we launched our sustainability targets. We commit to making a difference in sustainability together with our customers and Throughout 2020, we focused hard on employee, customer and in line with our strategy and purpose: enabling performance and end-user safety and on ensuring that our teams take all people’s wellbeing in smart and sustainable built environments. I am necessary precautions in their daily work against the virus. proud of these targets. They require us to continuously improve and to Staying close to customers and walking through the challenges expand our smart technology and digital solution offering to increase posed by Covid-19 together with them is the best recipe for customer value and handprint. By 2030 we want to reach a ten times staying