Review by the President and CEO

Financial Statements Bulletin 1 January - 31 December, 2015 (27 January 2016)

“During 2015, our business succeeded well in general and we had a good development with new clients and contracts. Tough pricing environment prevailed in the market throughout the year but Caverion was able to maintain its price levels with focus on quality and execution. In 2015, our order backlog grew by 10 percent. Throughout the year, we entered into a number of new demanding life cycle contracts and total technical solutions projects in line with our strategy. We have also been affected by changes in our operating environment, e.g. in Norway the general economy has been impacted by the slowdown in the oil industry.

The stabilisation of operations could be seen in the improved profitability throughout the year: Caverion improved its earnings per share (by 69%) and EBITDA (by 36%) significantly. During the year, we continued to invest in harmonised systems througout the group in order to provide our employees with the right tools to tender for new business in line with our updated client offering and tender processes. Furthermore, the Group had negative working capital, enabling development of the business further in a positive way.

The strategy execution progressed according to plan in 2015. Caverion is now ready for the next phase of its strategy, with a strengthened focus on profitable growth and developing the group business mix. To drive growth, Caverion introduced a unified market offering with innovative solutions at the Capital Markets Day in September in order to meet the client demand for Active Life Cycle Management. Caverion is targeting further growth especially in Large Projects and Managed Services, in its widest form offered as Life Cycle Solutions.

As we enter 2016 the main focus will be on the continued implementation of harmonised systems in all our divisions. We are seeking benefits from this common enterprise architecture by supporting our employees during tender processes and facilitating improved project management follow-up. It also enables easier integration of potential acquired businesses into our operations. Caverion aims to reach its financial targets by the end of 2016 firstly by benefiting from the recent investments into operational efficiency and by focusing on procurement and administrative efficiency. Secondly, the change in business mix towards growth in Large Projects and Managed Services promotes revenue and profitability growth supported by innovative and well managed technical installation and maintenance business.”

Fredrik Strand