CONSTI GROUP PLC CARNEGIE CONSTRUCTION SEMINAR 23 AUGUST 2017 CEO - PowerPoint PPT Presentation

CONSTI GROUP PLC CARNEGIE CONSTRUCTION SEMINAR 23 AUGUST 2017 CEO Marko Holopainen Building renovation specialist | www.consti.fi

Contents Consti in brief  H1/2017 highlights in brief   Market environment and competitive landscape Consti’s actions to capitalise on market opportunities  Building renovation specialist | www.consti.fi

Overview of Consti – one of the leading renovation and technical services provider in Finland Consti in brief  Comprehensive service offering covering Building Renovation Technical Building Facades Contracting technical building services, building Services (“CTT”) (“CJU”) (“CKU”) facades, renovation contracting and maintenance services 28%  Focused on Finnish growth centres 39%  Established in 2008, headquartered in 33% Helsinki, Finland, personnel (1165 Jun. 2017) Pipeline renovations Renovation of R enovation    of residential building envelopes contracting of non- Net sales by geographical area buildings (facades, roofs, residential properties windows, balconies, and public buildings  Technical etc.) installations to non-  Comprehensive residential properties Residential and non-r. remodelling and  and public buildings overhaul projects  Renovation of rental 12%  Service & apartment buildings  Service & Helsinki & 10% Uusimaa maintenance maintenance  Service & maintenance Tampere & 2016 Pirkanmaa Service business Others 78% Share of sales 2016 Wide range of services for HVAC and renovation  contracting Building facade cleaning and maintenance painting of  15% building exteriors and staircases Small-scale building repairs including window repairs,  renewal of lobbies, inspection of premises 22/08/2017 2 Building renovation specialist | www.consti.fi

Diverse customer mix and strong track record in project deliveries References 2016 Net sales by customer groups 2016 Korkeavuorenkatu 21, Helsinki As Oy Peski, Espoo Diverse customer mix ■ Conversion of a high-value Renewal of HVAC ■ and strong track record in project property into apartments systems for 100 deliveries ■ Facades apartments Corporations ■ Installation of HVAC systems 15% Housing companies Real estate Finish Broadcasting Company Kauppakeskus Kaari, Helsinki 35 % investors 24 % ■ Long term contract of ■ Modernization of a preventive HVAC shopping mall, new Public sector maintenance and escalators 26 % repairs References Scandic Park hotel, Hki ■ ■ As Oy Risto Rytintie (The best pipeline renovation of 2014) Net sales realised from one single customer did not exceed ■ KOy Jyrkkälä 10% of the year’s sales. ■ As Oy Merikamppi 3 22/08/2017 Building renovation specialist | www.consti.fi

Consti’s financial year 2016: sales grew and profitability continued to improve Consti’s four development phases since the foundation in 2008 Key actions behind profitable growth 300 Net sales (EURm) 0,12 Adjusted EBITDA margin 1) 262 256  Successful integration of acquired Adjusted EBIT margin before goodwill amortisations 1) 250 0,1 businesses 216  Clear strategic focus areas 200 0,08 172  Reorganising business areas and centralising expertise to them 141 142 150 135 0,06 5,0 % 4,9 % 4,6 %  Standardisation of operating 4,1 % models and information systems 100 83 0,04 3,1 % 4,2 % 4,1 %  Deepening and systemising risk 3,6 % 3,2 % management 50 0,02 18 2,2 %  Successful project management 0 0  Management of fixed expenses 2008 2009 2010 2011 2012 2013 2014 2015 2016 growth FAS IFRS Listed Large acquisitions Integ. Profitable organic growth comp. 1) Adjusted figures excluding non-recurring items. Non-recurring items include (i) expenses arising from contemplation of the structural agreements and listing, and (ii) implementation of IFRS 4 22/08/2017 Building renovation specialist | www.consti.fi

Consti Group’s project overview – Dispersed project base with a relatively small median project size Diversified project base and a fairly small median project size Comments In 2016, the company had 806 projects 1) with a median project ■ Median project size # of projects size of EUR 183 thousand 350 900 In 2016, net sales was generated from relatively small projects ■ 806 ■ Large projects typically realised in net sales over several years 800 300 700 ■ In 2012-2016, net sales realised during one year from one 670 single project has not exceeded 10% of that year’s sales 700 250 ■ 79% of the projects in progress in 2016 were valued at EUR 1 600 million or below €222k €216k 200 500 Project size distribution 2014-2016 (# of projects) €183k Project value > €1m Project value €150k - €1m Project value < €150k 400 150 2016 300 21% 33% 47% 100 200 2015 22% 33% 44% 50 100 2014 20% 39% 41% 0 0 2014 2015 2016 0 % 20 % 40 % 60 % 80 % 100 % 1) Number of projects based on management accounts. Project is qualified if it is accounted for according to the POC method and had realised revenue during the financial year. Total number of work tasks performed is larger (including non- POC) 5 22/08/2017 Building renovation specialist | www.consti.fi

Contents Consti in brief  H1/2017 highlights in brief   Market environment and competitive landscape Consti’s actions to capitalise on market opportunities  Building renovation specialist | www.consti.fi

Highlights of the first half of 2017: Net sales and order backlog improved Highlights of 1-6/2017 (y-o-y comparison in brackets)  Net sales EUR 136.1 (116.2) million, growth 17.1% Number of  EBITDA EUR 4.0 (3.7) million, EBITDA margin 2.9% personnel 6/2017: 1165 (990) (3.2%)  EBIT EUR 3.0 (2.8) million, EBIT margin 2.2 (2.4)%  Order backlog EUR 227,9 (212,6) million, growth Oulu 7.2% compared to previous year and +19.4% compared to year-end 2016  Free cash flow EUR 3.5 (3.7) million  Gearing 55.0 (76.1)%  Net debt EUR 15.5 (17.8) million Tampere  Earnings per share EUR 0.26 (0.24) Hämeenlinna Turku Lahti Porvoo Helsinki 7 22/08/2017 Building renovation specialist | www.consti.fi

Quarterly performance: Net sales, order intake and order backlog improved in H1 2017 Quarterly net sales (EUR m) Quarterly order intake (EUR m) Quarterly order backlog (EUR m) H1/16: H1/16: H1/17: H1/17: 116.2 126.7 142.5 136.1 83,0 227,9 78,8 212,6 212,9 75,6 74,9 74,8 74,5 199,8 70,4 70,6 191,7 190,8 185,6 66,1 181,3 64,8 63,6 63,4 172,3 59,5 57,3 51,4 51,2 30,3 28,5 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 8 22/08/2017 Building renovation specialist | www.consti.fi

Quarterly net sales development: First half of 2017 net sales up by 17.1% Quarterly net sales development Q2/2015 – Q2/2017 (EUR m) Comments Q2/2017 net sales EUR 78.8 (64.8) million ■ 85 78,8 • y-o-y sales growth 21.6% 74,9 74,8 75 70,6 70,4 • organic growth 17.6% Quarterly Net sales (EUR million) 64,8 63,4 27,6 65 ■ In Technical Building Services, growth of 17.1% 25,2 29,1 57,3 mainly from the residential sector and through 27,0 28,1 51,4 20,7 55 acquisition 23,4 16,9 11,8 ■ In Renovation Contracting, growth of 20.6% 45 20,7 from Greater Helsinki area 20,7 21,3 17,2 19,6 35 17,9 16,0 15,8 ■ In Building Facades, growth of 33.1% due to 16,8 good performance in Greater Helsinki area 25 ■ H1/2017 net sales EUR 136.1 (116.2) million 32,8 15 30,3 28,0 26,5 25,7 26,0 25,4 25,1 23,7 • y-o-y sales growth 17.1% (EUR 19.9 million) 5 • organic growth 13.6% (EUR 15.9 million) -1,2 -0,7 -1,2 -1,0 -1,1 -1,7 -1,6 -2,1 -2,3 -5 • acquisition growth 3.5 % (EUR 4.0 million) Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Technical Building Services (TBS) Building Facades Renovation Contracting Eliminations 9 22/08/2017 Building renovation specialist | www.consti.fi

Examples of new orders during H1 2017 RENOVATION BUILDING TECHNICAL BUILDING SERVICES CONTRACTING FACADES H1/17 order intake: H1/17 order intake: H1/17 order intake: EUR 50.9m (-2%) EUR 32.1m (+31%) EUR 64.7m (+23%) Siilitie 5 / HEKA ■ ■ As Oy Vuorilinna pipeline ■ Hoas Complete façade renovation incl, amenity renovations for roofs, windows and balconies for renovation, Helsinki 110 apartments, Helsinki student housing in Helsinki ■ Tripla parking house ■ As Oy Kiertotähdentie 4 Pasila, Helsinki ■ Jumbo shopping center, Comprehensive façade sub-contract Vantaa renovation for 9 buildings ■ As Oy Merisoukka pipeline ■ Heinola city hospital ■ Koy Helsingin Satamakatu 3 renovation, Heinola renovation, Helsinki modifications of old office building ■ As Oy Hiukkavaara 3 & 5 ■ As Oy Riutoja facades into rental apartment use, Helsinki HVAC-pipeline renovation, repair contract, Turku Oulu ■ Nummi comprehensive school ■ Invalid Foundation renovation and modification, ■ Keilaniemi, Ring 1 tunnel modification and repair Lohja work, Helsinki HVAC, Espoo ■ As Oy Porthaninkatu 5 comprehensive facade renovation, Helsinki 10 22/08/2017 Building renovation specialist | www.consti.fi