Coor Service Management Holding AB – Year-End Report January – December 2015

A strong conclusion to a strong year
Fourth quarter 2015

  · Net sales increased by 4 per cent in the fourth quarter, to SEK 2,042
(1,967) million. Organic growth excluding currency fluctuations amounted to
6 per cent.
  · Operating profit (adjusted EBITA) amounted to SEK 110 (112) million.
Excluding currency fluctuations, operating profit was unchanged. The operating
margin (adjusted EBITA margin) was 5.4 (5.7) per cent.
  · EBIT was SEK 56 (-97) million. Profit/loss after tax was SEK 45 (-147)
million.
  · Earnings per share were SEK 0.5 (-10.9). After adjustments for the effects
of the new capital structure, earnings per share were SEK 0.5 (-1.4).
  · Operating cash flow was SEK 268 (260) million. Excluding the outflows
related to the listing, operating cash flow was SEK 286 (260) million.
  · The Board of Directors proposes a dividend for 2015 of SEK 2.00 per share.

Full year 2015

  · Net sales increased by 9 per cent during the year, to SEK 7,482 (6,844)
million. Organic growth amounted to 10 per cent.
  · Operating profit (adjusted EBITA) improved by SEK 20 million to SEK 374
(354) million. Excluding currency fluctuations, operating profit increased by
SEK 24 million. The operating margin (adjusted EBITA margin) was 5.0 (5.2) per
cent.
  · EBIT was SEK 82 (-82) million. Profit/loss after tax was SEK 201 (-311)
million.
  · Earnings per share were SEK -3.6 (-34.2). After adjustments for the effects
of the new capital structure and non-recurring costs in connection with the
listing, earnings per share were SEK 2.7 (-3.2).
  · Operating cash flow was unchanged compared with the previous year and
amounted to SEK 274 (274) million. Excluding the outflows related to the
listing, operating cash flow was SEK 411 (274) million.
  · Net debt at year-end was SEK 947 (2,673) million. The leverage was 2.2
(6.6).

CEO´s comments:

2015 was a good year for Coor. We delivered strong organic growth, stable
operating profit and a strong cash flow. We have extended 90 per cent of the
customer contracts we negotiated during the year and continued to launch
innovative service solutions with a high degree of technological content for our
customers. The Board of Directors proposes a dividend for 2015 of SEK 2 per
share.

In conjunction with Coor's IPO in June 2015, we explained in many settings that
an investment in Coor is an investment in a market-leading service company with
growth potential, a strong cash flow and low level of tied-up capital. These
circumstances form the grounds for long-term, stable shareholder dividends. Our
customer value is directly linked to the value we create for our shareholders.
In the fourth quarter, we delivered growth in sales and profit, at the same time
as strengthening our margins compared with the two preceding quarters. Operating
cash flow also saw improvement during the quarter. In summary, we can report a
strong conclusion to a strong year.

Strong organic growth
Sales grew organically by 6 per cent during the fourth quarter to SEK 2,042
(1,967) million, and sales for the full year were SEK 7,482 (6,844) million,
corresponding to organic growth of all of 10 per cent. This is significantly
more than is exhibited by the market as a whole, and well in excess of our
target of 4-5 per cent organic growth per year.

The most substantial growth was seen in the Norwegian operations, but Sweden and
Denmark also provided positive contributions. Growth has primarily been driven
by the large number of new contracts we initiated in 2014 and 2015, not least
the large IFM contract signed with Statoil on-shore in 2014, while increased
sales to existing customers in the fourth quarter were also a contributing
factor. The most noteworthy of the new contracts we signed during the financial
year 2015 include the contracts with Statoil off-shore and Frontica Business
Solutions/Aker Solutions in Norway.

I would also like to emphasize the large number of existing contracts we
extended and expanded as one of the highlights of the year. A full 90 per cent
of the contract volume negotiated during the year, totalling almost SEK 2.9
billion, has been extended. Large customers that have chosen to continue and, in
some cases, expand their collaboration with Coor include Ericsson, the Danish
Police, AB Volvo, Volvo Car Group, Saab AB, Borealis and Vasakronan.

Stable profitability with numerous new and renegotiated contracts
Operating profit for the full year amounted to SEK 374 (354) million, an
increase of 6 per cent compared with previous year. The operating margin
improved on the two preceding quarters and amounted to 5.4 (5.7) per cent in the
fourth quarter. An important explanation behind the difference between this
quarter and the previous year is the decrease in pension rebates in Sweden
compared with recent years. Discounting for this effect, the Group's operating
margin in the fourth quarter would be in line with the previous year.

Coor's target is to generate an average operating margin of approximately 5.5
per cent over the course of an economic cycle. For the full year 2015, the
operating margin was 5.0 (5.2) per cent, which should be considered relative to
the high number of new and renegotiated contracts that we have managed during
the year. These contracts usually build up to full profitability during their
first 6 to 18 months. The underlying profitability in our contracts is stable,
and maturing contract volumes will constitute a solid base for our work to
strengthen margins during the coming years.

Strong cash conversion
Cash flow remains strong and working capital has been reduced by SEK 69 million
during the year, which together give a cash conversion of 104 per cent for the
full year 2015 (refer to Note 9 for further information). A stable cash flow is
a strategic priority for us at Coor, as it forms the basis for converting our
customer value to shareholder value, in the form of long-term, stable dividends.

Outlook
In a turbulent world, our home markets in the Nordic region continue to be
stable with underlying GDP growth in all of the Nordic countries except Finland.

Market prospects for outsourced FM services continue to be favourable. We are
witnessing a stable demand and high activity levels in all markets, and we are
in a good position to achieve continued growth with good cash flows.


Stockholm, 24 February, 2016

Mikael Stöhr
President and CEO, Coor Service Management


The information is disclosed pursuant to the Swedish Financial Instruments
Trading Act. The information was submitted for publication on February, 24, 2015
at 07:30 CET.


Invitation to press and analyst presentation
On 24 February at 10:00 CET, Coor's President and CFO will present the Company's
development during the fourth quarter in a webcast. To participate in the
webcast, please register via the following link http://edge.media
-server.com/m/p/6mhz6b46 prior to the meeting. If you would like to listen to
the presentation via telephone, please call +46 8 566 426 90 (Sweden), +47 235
002 52 (Norway), +45 354 455 75 (Denmark), +358 981 710 491 (Finland) or +44 203
008 98 01 (England). The presentation material as well as a recording of the
webcast will be published on the Company's website
www.coor.se/investerare/rapporterochpresentationer following the presentation.

Please find
more
information,
images etc.
at
www.coor.com
or contact
Thomas        IR, Coor Service    +46     thomas.backteman@coor.com
Backteman     Management          70 831
                                  11 66
Olof          CFO, Coor Service   +46     olof.stalnacke@coor.com
Stålnacke     Management          10 559
                                  59 20
Mikael Stöhr  CEO, Coor Service   +46     mikael.stohr@coor.com
              Management          10 559
                                  59 35
Åsvor         Communications and  +46     asvor.brynnel@coor.com
Brynnel       Sustainability      10 559
              Manager,            54 04
              Coor Service
              Management



Coor Service Management (Coor) is a leading provider of facility management
services in the Nordics, focusing on integrated and complex service undertakings
(IFM). Coor offers specialist expertise in workplace services (soft FM),
property services (hard FM) and strategic advisory services for development of
customers’ service activities. Coor creates value by executing, leading,
developing and streamlining its customers’ service activities, ensuring that
they provide optimal support to the core business over time. Coor’s customer
base includes many large and small companies and public-sector organisations
across the Nordic region, including AB Volvo, Aibel, Det Norske Veritas, DR
(Danish Radio), E.ON, Ericsson, EY, ICA, NCC, Politiet (Danish Police), Saab,
Sandvik, SAS, Skanska, Statoil, TeliaSonera, Swedish Transport Administration,
Vasakronan and Volvo Cars.

Coor was founded in 1998 and is listed on Nasdaq Stockholm since 2015. At
December 31, 2015, the company had 6,400 employees based mainly in Sweden,
Denmark, Norway and Finland, and annual sales of SEK 7,480 million. Coor takes
responsibility for the operations it conducts, in relation to its customers,
employees and shareholders, as well as for its wider impact on society and the
environment. Read more at www.coor.com