Financial position at the end of September 2019

Caverion’s cash and cash equivalents amounted to EUR 83.4 (18.7) million at the end of September. In addition, Caverion has undrawn revolving credit facilities amounting to EUR 100.0 million and undrawn overdraft facilities amounting to EUR 19.0 million.

The Group’s gross interest-bearing loans and borrowings excluding lease liabilities amounted to EUR 125.0 (68.9) million at the end of September, and the average interest rate after hedges was 3.0 percent. Approximately 40 percent of the loans have been raised from banks and other financial institutions and approximately 60 percent from capital markets. Lease liabilities amounted to EUR 131.3 million at the end of September 2019, resulting to total gross interest-bearing liabilities of EUR 256.3 million.

The Group’s net debt excluding lease liabilities amounted to EUR 41.7 (50.2) million at the end of September and including lease liabilities to EUR 172.9 million. At the end of September, the Group’s gearing was 79.5 (18.9) percent and the equity ratio 22.6 (30.9) percent. Excluding the effect of IFRS 16, the gearing would have amounted to 19.1 percent and the equity ratio to 26.2 percent.

At the end of the first quarter, Caverion issued new EUR 75 million senior unsecured fixed rate notes with maturity on 28 March 2023 as well as carried out a voluntary cash tender offer for its EUR 100 million hybrid notes issued on 16 June 2017. The 4-year notes carry a fixed annual interest rate of 3.25% per annum. The use of proceeds from the notes included, in addition to the partial redemption of the hybrid notes, general corporate purposes and investments and acquisitions in accordance with Caverion’s strategy. The final acceptance amount of the hybrid tender offer was EUR 33.94 million and the remaining amount of the hybrid bond outstanding is EUR 66.06 million. The purchase price of the hybrid notes was 101.20%. The rationale of the transactions was to proactively manage the Group’s debt portfolio, to extend the Group’s debt maturity profile and to decrease overall funding costs. Furthermore, Caverion also refinanced its bank loans and undrawn revolving credit facilities at the beginning of February 2019.

Caverion’s external loans are subject to a financial covenant based on the ratio of the Group’s net debt to EBITDA. The financial covenant shall not exceed 3.5:1. At the end of September, the Group’s Net debt to EBITDA was 1.1x according to the confirmed calculation principles. The confirmed calculation principles exclude the effects of the IFRS 16 standard and contain certain other adjustments such as excluding the German anti-trust fine and related legal and advisory fees.

 

Debt maturity




Net debt (EURm)


Gross debt to net debt

Cash flow and working capital

The Group’s operating cash flow before financial and tax items improved to EUR 63.0 (-32.1) million in January-September. The Group’s free cash flow improved to EUR 49.6 (-43.9) million.

The Group’s working capital improved to EUR -46.8 (-3.2) million at the end of September. The amount of trade and POC receivables decreased to EUR 513.4 (527.3) million and other current receivables to EUR 24.0 (39.9) million. On the liabilities side, advances received increased to EUR 207.9 (178.7) million while trade and POC payables decreased to EUR 184.0 (199.4) million. Working capital decreased on the Group level during the third quarter compared to the previous year. There was good improvement in divisions Finland, Norway, Industrial Solutions and particularly in Germany compared to the previous year.