Review by the President and CEO

Interim Report January-September 2015:

“In the third quarter we have been affected by changes in our operating environment. In Norway the general economy is impacted by the slowdown in the oil industry, which has affected business activities, with cancelled or delayed investments in large projects. Also the technical installation and maintenance business in Norway is partly affected by this.

Our investments into our operational model, processes and enterprise architecture are still being deployed. Caverion is now actively preparing for the next phase of its strategy, with a strengthened focus on customers, growth and developing the group business mix. Caverion has continued investments in common processes, which has also been reflected in operational expenses during the period. This includes training, restructuring and exiting operations and local businesses, which are not in line with the group strategy. In Germany a couple of projects in handover stage had a negative impact on EBITDA for July–September. The EBITDA performance during the rest of the year is expected to be in line with last year.

At the end of the third quarter our working capital increased due to seasonal fluctuation. Towards the end of the year we expect to reach our targeted level of negative working capital.

To drive growth, we introduced a unified market offering with innovative solutions at the Capital Markets Day in September. We are targeting further growth especially in Large Projects and Managed Services, in its widest form offered as Life Cycle Solutions. During the year, we have received a number of demanding contracts in this area, which are visible in the growth of our order backlog.”

Fredrik Strand