Financial development in 2014

Key figures




Net sales, EUR million

Net Sales1,829.62,183.92,267.62,020.12,044.5
  • The Group’s net sales remained on a par with last year and were EUR 2,044 million. The company did not aim for net sales growth in 2014.
  • The impact of exchange rate changes on the euro-denominated net sales was EUR -73 million with regard to the comparison year.
  • Net sales by country were 52% from Finland, 32% from Scandinavia, 10% from Russia and 6% from the Baltic countries.

Distribution of net sales by business, %

Paving*, 45%45
Building construction, 41%41
Infra projects, 14%14

*Incl. road maintenance, mineral aggregates and earthworks

  • Nearly half of the Group’s net sales came from the paving, mineral aggregates and earthworks businesses.
  • The mild winter lengthened the paving season and increased paving business net sales in nearly all operating countries.
  • In Finland, the increase in net sales was supported by major infrastructure projects.
  • In building construction, net sales were boosted by residential development and construction in Russia.
  • Competitive contracting in building construction in Finland and Russia decreased.

Order book, continuing operations, EUR million

10 11 12 13 14
Order book 1,083.6 1,289.3 1,336.1 1,733.2 1,456.1
  • The order book decreased by 16% year-on-year.
  • In infrastructure construction, the increase in the stage of completion of major infra projects decreased the order book.
  • At the end of the year, the paving order book was clearly lower than in the previous year, as the mild winter lengthened the 2014 paving season.
  • The building construction order book was increased by major renovation contracts in Finland.
  • In Russia, the order book decreased clearly due to the completion of two residential development projects.
  • Approximately 65% of the order book is attributable to 2015.

Key figures




Operating profit, EUR million

10 11 12 13 14
Operating profit 29.6 44.0 50.4 -89.3 36.3

  • Profitability was improved by ongoing infrastructure projects in Finland, building construction in the Helsinki metropolitan area, paving in all Nordic countries and residential construction in Russia.
  • The Group’s cost structure was lightened by EUR 10 million.
  • Profitability was impaired by expenses related to the revised organisation and declining margins in individual projects.
  • The Group’s operating profit (IFRS) includes non-recurring items: EUR 9.6 million (2013: EUR 19.8 million) of asset-related write-downs and EUR 6.4 million (2013: EUR 65.6 million) of asphalt cartel damages and related provisions.

Profit for the period, EUR million

Profit for the period1.235.644.1-93.518.1
  • The profit for the financial year 2014 includes a EUR 23.6 million capital gain recorded for the divestment of the technical building services business.
  • The Board of Directors proposes that no dividend will be paid for 2014.

Key figures




Equity ratio, %

10 11 12 13 14
Equity ratio 35.0 30.8 37.2 27.3 37.1
  • Equity increased 27% and stood at EUR 413 million at the end of year. It was boosted by the rights offering, the hybrid bond, the divestment of business operations and the year-on-year improved result.
  • Equity includes hybrid bonds worth EUR 140 million (2013: EUR 70 million). If the hybrid bonds were recognised as debt, the equity ratio would be 24.6% (2013: 21.5%).

Gearing, %

Net gearing105.7114.562.8100.851.8
  • Interest-bearing net debt decreased by 35% and was EUR 214 million.
  • Equity and the liquidity situation were boosted by the rights offering, the hybrid bond, the divestment of business operations and the year-on-year improved result.
  • If the hybrid bonds were recognised as debt, the gearing would be 128.4% (2013: 155.2%).

Key figures


 cash flow


Cash flow from operating activities, EUR million

10 11 12 13 14
Cash flow from operating activities -37.2 -7.1 57.8 8.3 -54.8
  • The operating cash flow remained negative in 2014.
  • The cash flow includes EUR 60 million of damages paid related to the asphalt cartel.
  • Working capital was released through more efficient invoicing, but, at the same time, the slowdown of housing sales in Finland increased inventories.

Key figures




Debt portfolio, 31 December 2014


  • Interest-bearing debt decreased by 15% and was EUR 348 million.
  • Of this debt, 40% (2013: 15%) was long term and 60% (2013: 85%) short term.
  • Commercial papers decreased by 42% and project loans increased by 74% compared to 2013.
  • In the spring, the company issued a EUR 100 million five-year bond to refinance the old EUR 60 million bond.
  • At the end of 2014, the company had unused credit limits worth EUR 185 million.
  • In addition, the company has hybrid bonds worth EUR 140 million.

Net finance costs 2013–2014

EUR million20132014
Finance income11
Interest costs-18-16
Interest rate derivatives1-1
Currency hedging costs-5-5
Write-downs of loan receivables-7
Other finance costs-6-9
  • Net finance costs increased by 40% and were EUR 38 million (2013: EUR 27 million) compared to 2013.
  • The share of interest expenses in net finance costs was less than half.
  • The largest individual item was a EUR 7 million write-down of loan receivables related to the divestment of the Lemcon Networks business.
  • Other costs were increased by changes in financial agreement terms and conditions, expenses incurred by a covenant violation and consultancy costs.

Note! The interest expenses of the hybrid bonds are not recorded under the finance costs in the income statement.