Review by the President and CEO
Interim Report 1-9/2014 (Oct 31, 2014):
“At our Capital Markets Day held in Stockholm in September, we emphasised our clear plan for improving our profitability. In line with this, we reiterated our key focus to address the great potential of our life cycle solutions. The megatrends in our business field, such as tightening requirements for energy efficiency, digitalisation and fragmented markets, work in our favour.
The key to our ongoing profitability improvement lies in our own internal efficiency, which we are enhancing by making needed changes to our operational model and processes. We are transforming from a financial holding model into one coherent service and project company. Therefore, our operating principles and processes will be essentially the same in all countries. The project management related to project controls has already been improved, project business is being centralised into project office units and the ability to run projects according to set targets has improved. As a result, the turnaround of the Norwegian project operations has progressed well during the third quarter, according to plan. In addition, we have invested in systems, tools and further harmonisation to shorten the invoicing process. Our improved working capital management can be seen in our improved operating cash flow also for July–September.
We also had a positive development in our order backlog, up 6 percent from the end of September 2013, amounting to EUR 1,379.5 million at the end of September. We have announced several multi-million orders, such as the Henninger Tower project in Germany worth EUR 33 million, a project delivery of DZNE research centre in Bonn (close to EUR 9 million) and a deal to Aquis Plaza shopping centre in Aachen (around EUR 5 million). In Finland, some of our customers have had to postpone their projects, but we have also been able to secure relatively large new deals, such as the delivery of electricity systems to the Valkea shopping centre in Oulu, worth EUR 3.5 million. In Norway, we are providing a total technical solution for Arendal police station, also worth more than EUR 3 million.”