Guidance for 2019

Caverion estimates that the Group’s Services business revenue and its relative share of the Group’s total revenue will increase in 2019, while the Projects business revenue will decrease. The Group’s Adjusted EBITDA for 2019 will be over EUR 120 million. The guidance takes into account the adoption of IFRS 16 in 2019, which has an estimated annual impact of adding around 2 percentage points to the Group’s EBITDA margin.

Adjusted EBITDA = EBITDA before items affecting comparability (IAC).

Items affecting comparability (IAC) in 2019 are material items or transactions, which are relevant for understanding the financial performance of Caverion when comparing the profit of the current period with that of the previous periods. These items can include (1) capital gains and/or losses and transaction costs related to divestments and acquisitions; (2) write-downs, expenses and/or income from separately identified major risk projects; (3) restructuring expenses and (4) other items that according to Caverion management’s assessment are not related to normal business operations.

In 2018, major risk projects included three completed Large Projects from Industrial Solutions, the financial effects of which were reported under category (2). The German anti-trust fine and related legal and other costs were reported under category (4). In 2019, major risk projects only include one risk project in Germany reported under category (2).

In its adjusted EBITDA guidance Caverion applies a 2 percent threshold.

Adjusted EBITDA ‒ Items affecting comparability

 

EUR million

10–12/18

10–12/17

1–12/18

1–12/17

EBITDA

-1.3

10.3

-8.8

3.8

EBITDA margin, %

-0.2

1.7

-0.4

0.2

Items affecting EBITDA

 

 

 

 

  • Write-downs, expenses and income from major risk projects

4.4

1.7

9.3

27.1

  • Restructuring costs

3.1

-4.9

5.3

7.3

  • Capital gains and losses from divestments

4.3

-12.3

5.5

-12.3

  • Other items*

0.6

 

42.1

 

Adjusted EBITDA

11.0

-5.2

53.4

25.8

Adjusted EBITDA margin, %

1.9

-0.9

2.4

1.1

 

* Including the German anti-trust fine and related legal and other costs.