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2016-02-24

Coor Service Management: 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 St?hr
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
St?lnacke Management 10 559
59 20
Mikael St?hr CEO, Coor Service +46 mikael.stohr@coor.com
Management 10 559
59 35
?svor 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

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http://news.cision.com/coor-service-management/r/coor-service-management...
http://mb.cision.com/Main/8962/9923476/481109.pdf
http://mb.cision.com/Public/8962/9923476/95d1788dfed34846.pdf

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