Financial development in 2015



Net sales, EUR million

Net Sales2,183.92,267.62,020.12,044.51, 879.0
  • The Group’s net sales declined year-on-year and were EUR 1,879.0 million (2,044.5). The company did not aim for net sales growth in 2015. During the year, the company divested the building construction business in Sweden and the road maintenance business in Norway.
  • Changes in currency exchange rates had a negative impact of EUR -67.2 million on net sales compared to the corresponding period in 2014.
  • Nearly half of the Group’s net sales came from the paving, mineral aggregates and earthworks businesses.
  • Net sales by country were 60% from Finland, 27% from Scandinavia, 7% from Russia and 6% from the Baltic countries.

Distribution of net sales by business, %

Paving 48%48
Building construction 38%38
Infra projects 14%14

Order book, EUR million

11 12 13 1415
Order book 1,289.3 1,336.1 1,733.2 1,456.11,180.3
  • The order book decreased year-on-year and stood at EUR 1,180.3 million (1,456.1) at the end of the year.
  • Strategic decisions decreased the order book: If the building construction business in Sweden, the road maintenance business in Norway and the development projects in building construction in Russia are removed from the previous year’s order book, the comparable order book for 2014 stands at EUR 1,146 million.



Operating profit, EUR million

11 12 13 1415
Operating profit 44.0 50.4 -89.3 36.337.3
  • The operating profit increased year-on-year, amounting to EUR 37.3 million (36.3).
  • The operating profit improved in Infra projects and Building construction, Finland, but declined in Paving and Russian operations.
  • Measures related to streamlining the portfolio had a negative impact of more than EUR 20 million on the operating profit for 2015. The largest individual item was the EUR 12.9 million write-down related to the company’s decision to withdraw from the planned Ilmatar project in Russia.

Profit for the period, EUR million

Profit for the period35.644.1-93.518.17.2
  • The profit for the period was EUR 7.2 million (18.1). The profit for the financial year 2014 includes a non-recurring EUR 23.6 million capital gain recorded for the divestment of the technical building services business.
  • The Board of Directors proposes to the AGM that for the financial year that ended on 31 December 2015, the company will distribute a per-share dividend of EUR 0.12 (0.00).



Equity ratio, %

11 12 13 1415
Equity ratio 30.8 37.2 27.3 37.140.6
  • Shareholders’ equity decreased and stood at EUR 377.6 million (412.5) at the end of the year. It was decreased by the partial repurchase of the first hybrid bond (EUR 27 million) in the second quarter.
  • The equity ratio improved to 40.6% (37.1).
  • Shareholders’ equity includes EUR 111.6 million (138.4) in hybrid bonds. If the hybrid bonds were recognised as debt, the equity ratio would be 28.6% (24.6).

Gearing, %

Net gearing114.562.8100.851.833.6
  • Interest-bearing net debt decreased and was EUR 126.8 million (213.6).
  • Gearing decreased to 33.6% (51.8).
  • If the hybrid bonds were recognised as debt, gearing would be 89.6% (128.4).

Operating capital, EUR million

Operating capital590,4474,8
  • Operating capital decreased and stood at EUR 474.8 million (590.4).
  • The change from the previous year is attributable to a reduction in net working capital, decreased investments and the sale of tangible assets.
  • At the end of the year, net working capital stood at EUR 258.7 million (335.1). Net working capital was reduced by decreasing housing start-ups in Russia and Finland, improving invoicing efficiency, increasing the use of factoring and improving inventory turnover in the Paving segment, among other things.




Cash flow from operating activities, EUR million

11 12 13 1415
Cash flow from operating activities -7.1 57.8 8.3 -48.4106.6
  • Cash flow from operating activities amounted to EUR 106.6 million (-48.4), remaining positive throughout the year.
  • The 2014 cash flow includes the payment of EUR 59.7 million in damages related to the asphalt cartel.
  • Changes in operating capital strengthened the cash flow.




Debt portfolio, EUR million

Finance lease liabilities5035
Commercial papers6313
Other financial liabilities83
Borrowings of companies included in inventory127104


  • Interest-bearing debt decreased and stood at EUR 254.7 million (347.8).
  • A total of 48% (40) of debt was long-term and 52% (60) short-term.
  • The borrowings of housing and commercial property companies included in inventory are transferred to the buyers of the co-op shares when the units are handed over.
  • The company has a syndicated credit facility (EUR 185 million) that was completely unused on 31 December 2015.
  • The company has two hybrid bonds (nominal value EUR 113 million) that are not included in interest-bearing debt. The company is entitled to redeem its hybrid bonds in 2016 (EUR 43 million) and in 2018 (EUR 70 million).

Net finance costs, EUR million

Finance income11
Interest costs-16-12
Interest rate derivatives-10
Currency hedging costs-5-4
Other finance costs-9-5
Write-downs of loan receivables-7
  • Net finance costs decreased clearly year-on-year, amounting to EUR 20.6 million (37.9).
  • Net finance costs were reduced by a decrease in interest expenses and currency hedging costs compared to 2014, among other things.
  • The net finance costs for 2014 include a EUR 7 million write-down of loan receivables related to the divestment of Lemcon Networks business.
  • The interest expenses of the hybrid bonds are not recorded under finance costs in the income statement; instead, their impact can be seen in earnings per share and changes in equity.