September, 2016 · o Maintpartner, BIS Production Partner (Bilfinger Industrial Services), Empower Company Presentation September 2016. Caverion Market outlook for Caverion’s business

September, 2016

Sakari Toikkanen, Interim President and CEOAntti Heinola, CFOMilena Hæggström, Head of IR

° Business and strategy

° Market overview

° Financials

° Appendix

Contents

Business and strategy

Caverion

Caverion in brief

4

EBIT

61EUR million

2.2%of revenue

Germany 22%

Sweden 22%

Denmark-Norway 21%

Industrial Solutions 15%

Finland 12%

Austria 6%

Eastern Europe 3%

Revenue by division in 2015

EBIT

61EUR million

2.2%of revenue

Caverion designs,builds, operates andmaintainsuser-friendly andenergy-efficientsolutions for buildings,infrastructure andindustrial plants.

Company Presentation September 2016

Key figures in 2015Revenue

2,443 EUR million

Personnel 17,321(average)

Order backlog1,461 EUR million

EBITDA91.5 EUR million

(3.7% of revenue)

Free cash flow53.9 EUR million

Caverion

Megatrends supporting demand for our business

Increasingtechnology

° Technology in buildingscurrently account for40−60% of buildingcosts.

° Integrated technologiesrequire multi-disciplineexpertise.

° Maintenance isincreasingly based onpreventive measuresas well as on actualneeds and conditions.

Improving energyefficiency

° Tightening legislationrelating to energyefficiency

° Integrated technologiesrequire multi-disciplineexpertise.

° Increasing demand forenergy-efficient solutionsalso for existingbuildings

Growingdigitalisation

º All technologies inbuildings have an IPaddress.

º Demand for remotemonitoring isincreasing.

º 10,000 buildingscurrently underCaverions’ remotecontrol.

Urbanisationcontinues

° Needs for necessaryinfrastructure (water,sanitation, energy,information,transportation)increase.

° Urban developmentmanagementimportant (manage ofland, housing,working environment,transportation)

Caverion

We area leading European

provider of advanced and sustainablelife cycle solutions for buildings and industries.

Profitability(EBITDA) over 6% of

revenue

Average annualrevenue growth > 10%

Negativeworking capital

Increasingprofits

Stronggrowth

Innovativeand advancedsolutions

We design, build, operate and maintain user-friendly and energy-efficientsolutions for buildings, infrastructure and industrial plants.

Step ahead + Cooperation + Responsibility + High performance

Vision

FinancialTargets

Strategicfocusareas

Mission

Values

Operationalexcellence

Strongcompanyimage

Excellentleadership

Strategy to addressmegatrends

Caverion

Business areas

º At its widest form delivered asManaged Life CycleSolutions.

º Services can be executedeither by Caverion or thirdparties.

º In total some 100 contracts inthis area.

º Small and mid size projectsand maintenance agreements

º Single and multipletechnologies

º Over 30,000 contracts in thisarea

º Contract volume > EUR 5mº Integrated solutionsº Customisationº Life Cycle focusº Caverion is running some 50

projects of this type.

Technical Installation &Maintenance Managed ServicesLarge Projects

Pie charts: Estimated share of Group revenue in 2015.Company Presentation September 2016

Number of competitorsBarriers of entry, complexity, margin potential, risk level

7

Caverion

Lorem IpsumIs simply dummytext of the printingand typesettingindustry.




Business mix supporting growth

Life Cycle Solutions° Includes design,

installation of buildingsystems, operation,maintenance as well asrenovation throughout thecontract period.

° Maintenance period of 20-25 years against a fixedmonthly fee in PPPprojects.

° Investment phase typicallyrun in a consortia.

8 Company Presentation September 2016

Large Projects

° Proactively sold, Large Projectswith total technical solutions.

° Typically includes advisoryservices, design & engineering,project management andexecution.

° Caverion is responsible formanaging project fulfilment.

Managed Services

° Medium term contracts to operate,develop and maintaintechnology/systems and relatedprocesses in commercial,industrial and residential buildings.

° Including both hard services andsometimes some contracted softservices

Technical Installations

° Renovations and new buildings,can include one or severaldisciplines.

° Technical design is done by theclient, or his representative.

° Caverion is responsible forproject execution of TechnicalInstallations.

Technical Maintenance

° Fixed price preventivemaintenance contract

° Corrective maintenanceperformed on time and material(“ad-hoc”).

° Small improvement projects(“service projects”)

Caverion

A fully industrialised and unique market offeringA fundament for development of the business mix


AdvisoryServices

Design &Engineering

Services

ProjectManagement

ProjectExecution

TechnicalMaintenance

ManagedServices

Public

Industry

Real estateowners anddevelopers

Real estateusers

Generalcontractors

Commercial view for eachservice area

Valuepropositionfor eachclientsegment

Life Cycle Solutions

Caverion 10 Company Presentation September 2016

1. Megatrendsdrive our strategy.

Reaching our strategic targets

2. Operational model& EnterpriseArchitecture in placeto enable profitablegrowth

3. Our business mixis being developedto drive profitablegrowth.

Market overview

Caverion

We have strong growth potential in the fragmented market

Technical Installation andand Maintenance 66%

Large Projects21%

Managed Services13%

Revenue breakdown1-6/2016

12

Strong marketposition in allkey operatingcountries

Main competitors by country/division

Finlando Are, Imtech Nordic , ConstiSwedeno Bravida, Imtech Nordic, Midroc Electro ABNorwayo Gunnar Karlsen, Bravida, OrasDenmarko Kemp & Lauritzen, Wicotec Kirkebjerk,

BravidaGermanyo Bilfinger Facility Services, ROM Technik,

Strabag PFSAustriao Ortner, EQOS Energie, CofelyIndustryo Maintpartner, BIS Production Partner

(Bilfinger Industrial Services), Empower


Caverion

Market outlook for Caverion’s business in 2016


Large Projectso Positive signs both in received

orders and tendering activity.o Demand for design & build of

Total Technical Solutionsexpected to develop favourably.

o Uncertainty in economicalsituation has affected newprojects resulting in pricepressure and further projectpostponements or cancellations.

Technical Installationand Maintenanceo Market is expected to remain

stable and price competition tightin Technical Installation.

o Requirements for increasedenergy efficiency, better indoorconditions and tighteningenvironmental legislation supportmarket development.

o In Norway general economyimpacted by slowdown in the oilindustry.

Managed Serviceso Need for new services and the

demand for life cycle solutions areexpected to increase.

o Clients’ focus on their coreoperations opens opportunities inoutsourced operation andmaintenance mainly for publicauthorities, industries and utilities.

Financials

Caverion

Outlook for 2016 and strategic financial targets

15

2015 (actual)

º Revenue growth: 2%º EBITDA margin: 3.7%º Working capital: EUR

-13.6m

Outlook 2016*º Revenue: estimated to

remain at the previous year'slevel (2015: EUR 2,443million).

º EBITDA excl. restructuringcosts: estimated to decreaseclearly from the previousyear's EBITDA level (2015:EUR 91.5 million)

Strategic financialtargetsº Revenue growth: average

annual growth > 10%º EBITDA margin: > 6%º Working capital: negative

New timeline for the reachingthe targets will be given laterthis year.

Company Presentation June 2016

Revenueº Strong focus on Managed

Services with a highergrowth profile and LargeProjects with total technicalsolutions and a higherdesign content

Profitabilityº Restructuring actionsº Strong focus in business mix

towards growth areas(Managed Services andLarge Projects) with highermargin potential

º Increasing procurement andadministrative efficiency

Working capitalº Focus on efficient invoicing

and working capitalmanagement

º Provides flexibility to managethe other two financialtargets

Key actions supporting achievement of our strategic financial targets

*Revised June 20, 2016.

Caverion

Restructuring status update

° Profitability problems due to resource overcapacity during2016.

° Cost reductions initiated through temporary layoffs andpersonnel reductions, estimated to affect up to 700employees.

° Main focus in divisions Sweden, Denmark-Norway andGroup Services.

° By the end of June 292 employees have beenpermanently laid off and there were 62 people ontemporary leave in division Norway.

° Total restructuring costs for 2016 are estimated to be in theregion of EUR 22-26 million.

° During H1 restructuring costs amounted to EUR 9.5million.

16

292

408

H1 Est. H2

Personnel ReductionFY2016E: 700

9,5

H1 Est. H2

Restructuring CostsFY2016E: EUR 22-26m

Caverion

Status update on division Sweden

Challenges° Resource overcapacity° Organisation structure and management

° Organisation layers, region management changed,roles and responsibilities

° Challenges in executing and managing projects° A more detailed project review was conducted in

Sweden for more than a hundred of ongoing projects.° Lack of project management competence

Immediate actions° Personnel reductions affecting Sweden° Stabilise and review the organisation structures° Project management office (PMO) to be supported by

the Projects Group function.° More control, audit and follow-up in the project

business° More internal training to be carried out.

17

Caverion

Strong order backlog development in Q2

18

° Order backlog grew by 12%compared to the previousyear (by 13% at comparableexchange rates).

° The order backlogcontinued to increasereflecting the growth targetsin Large Projects andManaged Services.

1 554

Order backlogEUR million


Q1 Q2 Q3 Q4

Comparative figures are carve-out figures for the periods before the effective date of the partial demerger (June 30, 2013).,

+12%

Caverion

Revenue development

19

242270 267

177137

72 36

257 247 229182 156

7136

Germany Sweden Denmark-Norway IndustrialSolutions

Finland Austria Eastern Europe

1−6/15 1−6/16

Revenue breakdown by divisionEUR million

° Revenue was EUR 1,176.1million in January−June.

° The revenue growth waslargest in Finland, Germanyand Industrial Solutionscompared to the previousyear.

° In Denmark-Norway, therevenue is impacted by thegeneral economicenvironment in Norway.

° In Sweden Caverion has notbeen able to capitalise onthe current marketenvironment.

(-9%)

(13%)

(6%) (-14%)

(-2%) (1%)


(3%)

591 588 567

660

563

638574

668

561616

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15 10−12/15 1−3/16 4−6/16

Group revenueEUR million

1−12/14: 2,407 1−12/15: 2,443

Caverion

Operating environment by business area (H1/2016)


Technical Installation andMaintenance

o The market was weaker thanexpected.

o The price competition was tight inTechnical Installations projects.

o In Norway, the business was stillimpacted by slowdown in the oilindustry.

o Still lower than expectedutilisation rate in Sweden.

Large Projectso Positive signs in tendering

activity, especially in the publicand industrial sectors.

o Recent uncertainty ineconomical situation hasaffected new projects resultingin price pressure and furtherproject postponements orcancellations.

Managed Services

o Demand remained strong.o Interest in PPP’s and other Life

Cycle Solutions increasing inthe Nordic countries while theystill represent only a marginalpart of the entire market.

Large Projects(21%)

ManagedServices (13%)

TechnicalInstallation andMaintenance(66%)

Revenue by business area1−6/2016

Caverion

Profitability affected by restructuring actions

21

9,6 2,1

21,5

34,3

14,2

22,0 21,3

34,0

11.5

-14,4

1,6

0,4

3,8

5,2

2,5

3,4 3,7

5,1

2.0

-2,3

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15 10−12/15 1−3/16 4−6/16

EBITDA, EUR million

EBITDA margin, %o EBITDA negatively affected

by restructuring costs (EUR7.5 million for Q2).

o EBITDA excl. restructuringcosts for Q2 was EUR -6.8million.

o Project portfolio reviewed inSweden − Cost estimates andprovisions revised with anegative impact of EUR 15million for April–June.

o Investments in severaldevelopment projects andcommon processes alsoreflected in operationalexpenses.


1−12/14: 67.5 (2.8%) 1−12/15: 91.5 (3.7%)

Caverion

Working capital hasdeteriorated in 2016 dueto weak development inGermany and Swedendriven by delayed finalpayments in projects andlow invoicing.

Financial target: negative working capital

22

100

120

46

64

49 49

-19 -13

8

36

-14

1717

4%5%

2%

3%

2%2%

-1% -1%

0%

1%

-1%

1% 1%

Working capital,EUR millionWorking capital tosales, % (LTM)

Working capital


6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16

Caverion

Cash flow and investments

23

-15,8 -7,1

14,4

87,6

0,8

-6,3 -14,2

73,6

-28,8 -32,61−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15 10−12/15 1−3/16 4−6/16

Free cash flowEUR million

o Cash flow has deteriorated in2016 due to low profitability,high level of investments andweak development inGermany and Sweden drivenby delayed final payments inprojects and low invoicing.

o Capex investments (incl.acquisitions) totalled EUR24.4 million in January-June.o IT investments: EUR 16.0

million.o Other investments, incl.

acquisitions: EUR 8.5million.

o Free cash flow = Operating cashflow before financial and tax items– Taxes paid – Net cash usedin investing activities (net,including acquisitions anddisposals).


-11,1

4,1 20,5

100,0

9,8 1,8

-8,9

83,1

-18,8 -12,3

3,1 5,2 4,3 10,87,3 5,5 5,0 9,0 7,1

17,3

Operating cash flow before financial and tax items, EUR millionCapex, EUR million

1−3/14 4−6/14 7−9/14 10−12/14 1−3/15 4−6/15 7−9/15 10−12/15 1−3/16 4−6/16

Caverion

75

24 22 2010

2016 2017 2018 2019 2020+

Debt structure

24

o Loan portfolio total:EUR 150.9 million

o Average interest rateafter hedges: 0.91%

Loan portfolio Interest rate type(after hedges)

Debt maturityEUR million

Interim Report 1-6/2015

Lisää kuva tähän

Fixedinterest58%Floatinginterest42%

* Interest rates are hedged against interest rate rise.

*Banks 54%

Commercialpapers 42%

Insurancecompanies 3%

Others 1%

Caverion

Liquidity

25

Gross debt to net debtEUR million

Liquidity reserve EUR 140 millionEUR million

Net debt, EUR million

Interim Report 1-6/2015

65

8620

131

Long-term borrowings Short-termborrowings

Cash and cashequivalents

Net debt 20

119

Unused creditfacilities

Cash and cashequivalents

o Net debt remains in Q42014 level

o Strong cash positionenabled voluntaryrepayment of gross debtby EUR 20 million

104

143132

50 50

85102

30

59

131

1,5x

2,4x 2,3x

0,7x 0,7x 0,9x 1,1x0,3x 0,7x

2,5x

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Net debt/EBITDA, Rolling 12 Months

Guidance

Caverion

Guidance for 2016 (revised on June 20)

27

Revenue

Caverion estimates thatthe Group’s revenue for2016 will remain at theprevious year's level(2015: EUR 2,443million).

EBITDA excludingrestructuring costsCaverion estimates that theGroup’s EBITDA excludingrestructuring costs for 2016will decrease clearly from theprevious year's EBITDA level(2015: EUR 91.5 million).

Company Presentation June 2016

Caverion

Dividend policy

28

A dividend of EUR0.28 per share waspaid on April 4,representing 75% ofthe Group’s net profitfor 2015.

0,22 0,22 0,28

78%100% 75%

2013 2014 2015

Dividend per share, EURDividend pay-out ratio, %

Dividend pay-outat least 50%of the net profitfor the period.


Additional slides

Appendix

Caverion

Key figures

EUR million 4−6/16 4−6/15 Change 1−6/16 1−6/15 Change 1−12/15

Order backlog 1,554.2 1,393.1 12% 1,554.2 1,393.1 12% 1,461.4

Revenue 615.5 638.1 -4% 1,176.1 1,201.5 -2% 2,443.0EBITDA excluding restructuringcosts -6.8 - - 6.6 - - -

EBITDA margin excludingrestructuring costs, % -1.1 - - 0.6 - - -

EBITDA -14.4 22.0 -2.9 36.2 91.5

EBITDA margin, % -2.3 3.4 -0.2 3.0 3.7

Operating profit -21.5 15.5 -16.7 23.4 65.0

Operating profit margin, % -3.5 2.4 -1.4 1.9 2.7

Earnings per share, basic, EUR -0.13 0.08 -0.10 0.13 0.37

Working capital 17.1 7.7 123% 17.1 7.7 123% -13.6

Free cash flow -32.6 -6.3 -61.3 -5.5 53.9

Interest-bearing net debt 130.6 84.9 54% 130.6 84.9 54% 29.8

Personnel, average for the period 17,577 17,032 3% 17,541 17,018 3% 17,321


Caverion

17,664 employees at the end of June


Germany 14%Sweden 20%Denmark-Norway 20%Industrial Solutions 16%Finland 14%Austria 5%Eastern Europe 10%Group Services 1%

Group-wide effort todevelop a Caverion wayof working and mindset:° Work safety and well-being of

all employees as a constantpriority

° Code of conduct to guidebehaviors of all employees inevery day collaboration

The planned personnelreductions are estimated toaffect up to 700 employees.

The main focus will be indivisions Sweden andDenmark-Norway as well asin Group Services

Employees by divisionat the end ofJune 2016

Caverion

Changes in the Group organisation

° New Projects and ServicesGroup functions to beestablished.

° Implementation, audit andfollow up

° Support to divisions withchallenges

° Fixed costs will be reduced° Prioritisation of internal

development programmes° Less Group employees

33

* Martti Ala-Härkönen as of Sep. 19, 2016

Caverion 34

M&A as a growth driver

M&A criteriao Good strategic fit

• Geographicalcoverage

• Business portfolio

• Customer sectors

o Complementary skills &resources

o Business culture

o Value creation potential

o Profitability turn-around

o Strong local marketposition

Valuation criteriao Internal valuation always

prepared

o Key indicators:

o EV/Sales

o EV/EBITDA

o EV/EBIT

o P/E and P/B

o DCF/Payback time

o Target values depend onthe target company’sprofile as well as marketsituation.


Caverion

Acquisitions have contributed to revenue growththrough the cycle

35

2002-2009 figures based on official segment reporting, i.e. sum of building systems and industrial services related revenue figures of YIT, including also internal sales.2010-2012 figures are external revenue figures based on Caverion’s carve-out segment reporting.2013 figures: 1-6/2013 carve-out + 7-12/2013 actual.

Revenue, EUR million

6781,021

1,680 1,797 1,8922,140

2,3962,125

2,353

2,876 2,8032,544 2 407 2 443

1 176

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1/2016

Calor AB ABB BuildingSystems

MCE AG caverion GmbH

Acquisitionperiod

Integration anddevelopment

Integration and developmentAcquisitionperiod

Group revenueEUR million


EscoNorway

ArnegKühlmöbel

Caverion

32,188 shareholders on August 31, 2016

36

Major shareholders on June 28,2013

Largest shareholdersShares,

pcs

% ofshare

Capital

Change afterJuly 2016,

pcs

Change afterJuly 2016, %

1Structor S.A. 17,840,000 14.20 0 0.00

2Herlin Antti 15,495,180 12.34 0 0.00

3 Ilmarinen Mutual Pension Insurance Company 5,013,946 3.99 0 0.00

4Fondita funds 3,552,000 2.83 0 0.00

5Nordea funds 3,532,503 2.81 -1,245,498 -26.07

6OP funds 2,871,094 2.29 124,334 4.53

7Aktia funds 1,888,970 1.50 0 0.00

8Varma Mutual Pension Insurance Company 1,864,393 1.48 0 0.00

9The State Pension Fund 1,850,000 1.47 0 0.00

10Elo Pension Company 1,611,089 1.28 0 0.00

11Säästöpankki funds 1,378,746 1.10 20,000 1.47

12SEB Investment Funds 1,211,516 0.96 -64,792 -5.08

13Brotherus Ilkka 1,048,265 0.83 0 0.00

14Odin funds 969,797 0.77 0 0.00

15Evli funds 713,571 0.57 -5,857 -0.81

16Föreningen Konstsamfundet rf 644,002 0.51 -175,000 -21.37

17Caverion Oyj 512,328 0.41 0 0.00

18Försäkringsaktiebolaget Pensions-Alandia 420,739 0.33 0 0.00

19Foundation of Brita Maria Renlunds minne 412,000 0.33 0 0.00

20OP Life Assurance Company Ltd 391,116 0.31 -7,543 -1.8920 largest, total 63,221,255 50.34

All shares 125,596,092 100

Nominee registered and non-Finnishholders 32.7% (Jun. 30, 2016:31.3%)Households20.8% (20.8%)

General government9.4% (9.3%)

Financial and insurance corporations12.4% (13.7%)

Non-profit institutions5.9% (6.2%)

Non-financial corporations andhousing corporations18.6% (18.7%)

Owners by category byshares owned

32,188 owners(July 31, 2016:

32,237)


Documents

September, 2016 · o Maintpartner, BIS Production Partner (Bilfinger Industrial Services), Empower Company Presentation September 2016. Caverion Market outlook for Caverion’s business