Bravida Interim Report January–June 2014

  · Net sales were SEK 5,840 million (5,535)
  · Operating profit was SEK 296 million (253)
  · Cash flow from operating activities was SEK 323 million (107)

Bravida’s operations continued to see positive growth during the second quarter.
Operating profit increased by 42 per cent during the second quarter, while sales
increased by over 6 per cent. First-half operating profit was SEK 296 million
(253), representing an operating margin of 5.1 (4.6) per cent, while cash flow
from operating activities increased from  SEK 107 million to SEK 323 million.
Bravida’s first-half sales for 2014 increased by over 5 per cent to SEK 5,840
million (5,535). Operating profit for the period increased by 17 per cent and
amounted to SEK 296 million, compared with SEK 253 million for the same period
last year. The first-half operating margin was 5.1 per cent (4.6).

Sales increased during the second quarter by over 6 per cent to SEK 2,992
million (2,806), while operating profit increased by over 42 per cent to SEK 151
million (106).

We are seeing significant improvement in Division Norway, where profitability
has gradually improved and has stabilised over the last five quarters. The
positive trend in Division Denmark is continuing, thanks to first-half growth of
21 per cent, while at the same time the order backlog remains strong. In Sweden,
Division North continues to enjoy positive sales growth, although first-half
profit did not reach the same high level as last year. Sales and profit in
Division Stockholm were lower compared with the same period last year, while
Division South has remained stable in terms of both sales and profitability.

It is pleasing to see that operating cash flow has remained good during the
first half of 2014.
The order intake during the first half of 2014 was more than 3 per cent lower
compared with the same period last year. This fall can be attributed to all
divisions except Norway. The order backlog, which is at a record high level,
amounted to SEK 6,466 million (5,547) at the end of the period, thanks largely
to Division Denmark and Division Norway, where we have seen greater interest in
infrastructure investments and increased demand from the public sector. The
Group received major orders during the first half, primarily in infrastructure,
education, healthcare and housing, as well as shopping centres, swimming baths
and offices. Public-sector investments still account for a large share of growth
in the market while activity in industry, residential construction and new
commercial builds is generally stable, but is falling in some geographical
areas.

On 2 June 2014, Norwegian company Otera Elektro joined the Bravida Group,
further strengthening our position as one of the leading suppliers of
installation and service on the Norwegian market. Otera has sales of
approximately SEK 400 million and employs around 300 people with operations in
Kristiansand, Bergen and Asker. The acquisition was financed entirely from the
Group’s own funds.

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, while at the
same time achieving growth, both organically and through further acquisitions.

Staffan Påhlsson
CEO and Group President

The report is available at the corporate website: www.bravida.com/en/Financial
-information/

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Bravida Holding AB publishes this interim report in compliance with the Swedish
Securities Market Act and/or the Swedish Financial Instruments Trading Act. This
information was submitted for publication at 10.00 a.m. on 2 September 2014.
Contact information:

Any questions will be answered by Staffan Påhlsson, CEO, or Peter Hedlin,
Interim CFO.
Tel +46 8 695 20 00.
Bravida är Skandinaviens främsta totalleverantör av installations- och
servicetjänster med cirka 8 000 medarbetare i Sverige, Norge och Danmark.
Bravida levererar såväl specialisttjänster som helhetslösningar inom el, vs och
ventilation och erbjuder allt från design och projektering till installation,
drift och underhåll. Bravida finns representerade på drygt 150 orter i Sverige,
Norge och Danmark. www.bravida.com