Bravida year-end report January–December 2013

  · Net sales were sek 11,080 million (11,400)
  · The operating profit was sek 600 million (570)
  · Cash flow from operating activities was sek 457 million (424)

Bravida’s operating profit for the full year 2013 increased by 5 per cent to SEK
600 million (570), equivalent to an operating margin of 5.4 per cent (5.0).
Sales fell to SEK 11,080 million (11,400), while cash flow from operating
activities improved by 8 per cent to SEK 457 million (424).

Bravida’s operating profit for the fourth quarter was SEK 234 million, an
increase of 20 per cent compared with the same quarter last year. This
improvement was mainly due to stronger results in Division Denmark and Division
North. The operating margin for the fourth quarter was 7.5 per cent (6.3), while
sales increased marginally to SEK 3,113 million (3,100).

Division Denmark has seen a marked improvement in profitability, with progress
in terms of both order intake and profitability, while the market has also
stabilised during the year. Division Norway has experienced a negative sales and
profit trend during the year, although this has been reversed in the last
quarter. In Sweden, Division North continues to grow, both in terms of sales and
profitability, Division Stockholm has remained relatively stable, whilst
Division South has lower sales and profitability.

It is also pleasing to see that the cash flow has improved in 2013 compared with
2012. Cash flow from operating activities was SEK 457 million (424).

The order intake exceeded sales for both the fourth quarter and the year as a
whole. Order intake increased by 6.8 per cent to SEK 12,346 million (11,564) in
2013. This increase is primarily attributable to Division Denmark and Division
North. The order backlog at year-end is the highest in Bravida’s history and
amounted to SEK 6,075 million (4,809), thanks largely to Division Denmark, where
we have seen greater interest in infrastructure investments. A number of
significant orders from customers in the road, rail and energy sectors has
contributed to this positive development, including Bravida’s work with French
company Alstom Transport, which involves the replacement of the current
signalling systems on the Danish islands of Zealand and Funen. This order alone
is worth more than DKK 300 million.

Public-sector investments still account for a large share of growth in the
market while activity in industry, residential construction and new commercial
builds remains stable, but weaker in some areas. As Bravida operates in a highly
competitive market, a continued selective approach to high-risk installation
projects with poor profitability is necessary. Bravida therefore works
consistently to increase the share of revenues generated in our higher-margin
service business while keeping a close eye on costs. In 2013, we also began
working on a Group-wide change project designed to improve and streamline our
working methods and production. The project involves all departments and will
continue in 2014.

Our assessment is that the economy as a whole has stabilised and that the market
will improve gradually in 2014, but with significant regional variation. Bravida
expects to see positive growth during the second half of 2014 and our aim is to
continue to deliver profitability in the top tier of our industry. The company
currently has around 8,000 skilled employees and our goal is to achieve
profitable growth, both organically and through acquisitions.

Staffan Påhlsson
CEO and Group President

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Bravida Holding AB discloses the financial statement under the Swedish
Securities Market Act and/or he Swedish Financial Instruments Trading Act.
Submitted for publication at 9:00 CET February 20, 2014.
Contact information:

Any questions will be answered by Staffan Påhlsson, CEO, or Peter Hedlin,
Interim CFO. Tel +46 8 695 20 00.
Bravida is Scandinavia’s premier integrated supplier of technical installation
and service solutions, with nearly 8,000 employees. Bravida offers specialist
expertise and integrated solutions in electrical installations, heating &
plumbing and HVAC and operates at all stages of the installation – from advice
and project planning to installation and service. Bravida has offices at 150
locations in Sweden, Norway and Denmark. www.bravida.com