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2016-05-12

Consti Yhtiöt Oyj: Consti Group Plc Interim Report for January - March 2016

CONSTI GROUP PLC INTERIM REPORT 12 MAY 2016, at 9.00 a.m.

Consti Group Plc Interim Report for January - March 2016

Net sales and order backlog continued to grow

1-3/2016 highlights (comparison figures in parenthesis 1-3/2015):

· Net sales 51.4 (47.5) million euro; growth 8.2 %
· EBITDA 0.6 (0.6) million euro and EBITDA margin 1.2 % (1.2 %)
· Adjusted EBITDA 0.7 (0.9) million euro and adjusted EBITDA margin 1.3 %
(1.9 %)
· Operating profit (EBIT) 0.2 (0.1) million and operating profit (EBIT)
margin 0.4 % (0.1 %)
· Adjusted EBIT 0.2 (0.4) million euro and adjusted EBIT margin 0.4 %
(0.8 %)
· Order backlog 191.7 (179.9) million euro
· Free cash flow 3.4 (2.2) million euro
· Earnings per share -0.01 (-0.26) euro
Guidance on the Group outlook for 2016:

The company estimates that its total annual sales for 2016 will grow compared
to 2015.

Impact of new ESMA guidelines
New ESMA (European Securities and Markets Authority) guidelines on Alternative
Performance Measures (APMs) are effective for the financial year 2016. Consti
presents APMs to reflect the underlying business performance and to enhance
comparability between financial periods. APMs should not be considered as a
substitute for measures of performance in accordance with the IFRS. As of Q1
2016, Consti relabels the previously referenced "before non-recurring items"
with "before items affecting comparability" (IAC).

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| KEY FIGURES (EUR 1,000) 1-3/ 1-3/ Change % 1-12/ |
| |
| 2016 2015 2015 |
| Net sales 51,367 47,494 8.2 % 256,151 |
| Adjusted EBITDA* 660 881 -25.1 % 12,613 |
| Adjusted EBITDA margin, % 1.3 % 1.9 % 4.9 % |
| EBITDA 637 586 8.7 % 10,507 |
| EBITDA margin, % 1.2 % 1.2 % 4.1 % |
| Adjusted EBIT* 214 366 -41.5 % 10,520 |
| Adjusted EBIT margin, % 0.4 % 0.8 % 4.1 % |
| Operating profit (EBIT) 191 71 169.6 % 8,414 |
| Operating profit (EBIT) margin, % 0.4 % 0.1 % 3.3 % |
| Profit for the period -77 -1,036 92.6 % 3,260 |
| Order backlog 191,725 179,866 6.6 % 181,301 |
| Free cash flow 3,394 2,184 55.4 % 8,910 |
| Cash conversion, % 532.6 % 372.7 % 84.8 % |
| Net interest-bearing debt 15,014 43,307 -65.3 % 17,407 |
| Gearing, % 61.4 % neg. eq. 70.9 % |
| Number of personnel at period end 904 864 4.6 % 890 |
| Earnings per share, undiluted (EUR) -0.01 -0.26 96.1 % 0.61 |
| * For a more detailed description of items affecting comparability, see |
|section "Sales, result and order backlog" |
-----------------------------------------------------------------------------

CEO Marko Holopainen's comment

"The demand in renovation construction and technical building services
continued good during the first quarter. Order intake increased and our order
backlog grew compared to the turn of the year.

Our net sales grew 8.2 percent to 51.4 million euro. Sales growth was strong
in Renovation Contracting and Technical Building Services. Our profitability
remained solid during the first quarter of the year, which is our slowest
season. Our adjusted EBIT was 0.2 million euro, which is 0.4 percent of the
net sales, while corresponding figures from the first quarter of 2015 were
0.4 million euro and 0.8 percent of the net sales. At the end of the
reporting period our order backlog in euro was strong: 191.7 (179.9) million
euro, which provides a good foundation for our business during the rest of
the year.

The market situation in the beginning of the year has been good. The amount of
tender requests has increased positively and we have negotiated about several
interesting ventures. New work sites that started during the reporting period
include for example a large-scale building automation project at the Helsinki
City Theatre, which is one of the largest automation ventures Consti has ever
had. In addition, Consti will for instance renovate Samppalinna outdoor
swimming stadium in Turku.

As defined in our strategy, we have actively sought new acquisition
possibilities and continued work to progress our internal development
projects. Our goal is to continue profitable growth by strengthening our
position in Finland's growth centres.

Based on our current market and business outlook, we believe that renovation
construction and technical building services will continue their stable
growth during 2016."

Operating environment

Renovation's relative portion of the building market has grown during the past
decade in Finland, and it is now already larger than the new building market.
The Confederation of Finnish Construction Industries RT (CFCI) estimates that
renovation amounted to approximately 54 percent of the building market's
total value in 2015. The general economic situation has a significantly
smaller impact on renovation construction and technical building services
than it does on the new building market.

The ageing building stock particularly increases the demand for renovation
construction. As buildings age, they require more technical renovations such
as pipeline and façade renovations. At the moment mainly buildings from the
1960s are being renovated in Finland. Next, renovations will start on the
considerably larger building stock of the 1970s and 1980s. Renovation of this
building stock has already been partly started. In renovation construction
the largest growth during the next decade is expected to come from
residential buildings in large cities. In residential building renovations
approximately one third of the renovations are pipelines, one third façades
and the rest other structures.

In addition to ageing, buildings require more renovation, technical building
services and building technology maintenance services due to heightened
energy efficiency requirements, urbanisation, modification of the use of
buildings, the development of housing automatisation and the ageing
populations' need for barrier-free buildings.

There are currently a great number of buildings in Finland which would benefit
from renovations modifying their use to match current needs. Such renovations
would improve both the buildings' usability and profitability. Typical
modifications of buildings include the altering of old office buildings and
industrial buildings in growth centres into hotels, apartments and assisted
living facilities. Modifications of the use of buildings are a central part
of Consti's services.

Renovation construction markets are concentrating on growth areas, akin to new
construction. Necessary technical repairs in declining suburbs and less
populated areas are often economically unviable.

The Confederation of Finnish Construction Industries RT (CFCI) estimated in
its April business conditions review that total construction will increase
3-4 percent from the previous year during 2016. Renovation construction is
estimated to grow 2.5 percent from the previous year. The majority of
renovation is estimated to come from renovations of residential buildings.

The boost in new building should have a positive impact on Consti's
competitive environment and create new growth opportunities for Technical
Building Services. New building growth has a delayed impact on technical
building services. The Finnish Association of HPAC Technical Contractors
estimated in their April review of business conditions that the economic
situation should improve for technical building services by autumn.

The renovation market is very fragmented in Finland. Large construction
companies focus on new building and the field of renovation has typically
consisted of several small companies that usually focus on only one segment
of renovation.

Measured in sales, Consti is one of Finland's leading companies in renovation
and technical building services.

Outlook for 2016

Renovation construction is expected to continue steady growth in 2016. The
Confederation of Finnish Construction Industries RT (CFCI) estimated in its
April review of business conditions that renovation construction will grow
approximately 2.5 percent from the previous year during 2016. The European
construction business research group Euroconstruct estimated in its December
2015 forecast that renovation construction will grow about 2 percent from the
previous year during 2016.

The boost in new building should have a positive impact on Consti's
competitive environment and create new growth opportunities for Technical
Building Services. New building growth has a delayed impact on technical
building services. The Finnish Association of HPAC Technical Contractors
estimated in their April review of business condition that the economic
situation should improve for technical building services by autumn.

The general economic conditions have a considerably smaller impact on
renovation construction and technical building services than on new building.

The company estimates that its total annual sales for 2016 will grow compared
to 2015.

Press conference

A press conference for analysts, investors and media will be arranged on
Thursday May 12th 2016 at 10:00 at Scandic Marski hotel's Neptun-cabinet at
Mannerheimintie 10, Helsinki. The conference is hosted by CEO Marko
Holopainen and CFO Esa Korkeela.

Financial communication in 2016

Consti Group Plc shall publish two more interim reports during 2016:

* Interim report 1-6/2016 published 17 August 2016
* Interim report 1-9/2016 published 10 November 2016

CONSTI GROUP PLC

Further information:

Marko Holopainen, CEO, Consti Group Plc, Tel. +358 400 458 158
Esa Korkeela, CFO, Consti Group Plc, Tel. +358 40 730 8568

Distribution:

Nasdaq Helsinki Ltd.
Major media
www.consti.fi

Consti is a leading Finnish company concentrating on renovation and technical
services. Consti offers comprehensive building technology, pipeline
renovation, renovation contracting, façade renovation and other demanding
construction and maintenance services for residential and commercial
buildings. In 2015, Consti Group's net sales amounted to 256 million euro. It
employs about 900 professionals in renovation construction and bu...

Författare Hugin

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