Adapteo’s Financial Statement Release January-December 2019: Comparable quarter earnings on par with last year

Adapteo’s Financial Statement Release January-December 2019: Comparable quarter earnings on par with last year

Adapteo Plc Regulatory press release 14 February 2020 at 07:30 a.m. CET

October-December 2019

· Rental sales amounted to EUR 35.1 (34.9 Oct-Dec 2018) million. In constant
currencies, rental sales increased by 2%.
· Net sales amounted to EUR 49.6 (55.5) million. In constant currencies, net
sales decreased by 9%.
· Comparable EBITDA was unchanged at EUR 20.6 (20.6) million. Comparable
EBITDA margin increased to 41.6% (37.0%).
· Operating profit (EBIT) decreased to EUR –3.9 (5.6) million, representing
–7.8% (10.1%) of net sales. Operating profit (EBIT) included items affecting
comparability of EUR 1.0 (4.3) million.
· Operating cash flow before growth capex was EUR 19.0 (22.8) million.[1]
· Growth capex was EUR 4.3 (17.7) million.[1]
· Earnings per share was EUR -0.17 (0.10).

January-December 2019

· Rental sales amounted to EUR 132.7 (128.8 Jan-Dec 2018) million. In constant
currencies, rental sales increased by 5%.
· Net sales amounted to EUR 216.2 (220.6) million. In constant currencies, net
sales were unchanged from 2018.
· Comparable EBITDA was EUR 88.5 (83.6) million, an increase of 6% Comparable
EBITDA margin increased to 40.9% (37.9%).
· Operating profit (EBIT) decreased to EUR 22.1 (42.6) million, representing
10.2% (19.3%) of net sales. Operating profit (EBIT) included items affecting
comparability of EUR 12.4 (5.2) million.
· Operative return on capital employed (ROCE) amounted to 8.5% (12.1%)
· Net debt to comparable EBITDA was 4.5x.
· Operating cash flow before growth capex was EUR 65.7 (57.6) million.[ 1]
· Growth capex was EUR 29.1 (46.7) million.[ 1]
· Earnings per share was EUR 0.19 (0.63).
· The Board of Directors proposes a dividend of EUR 0.12 per share.

[1] On a carve-out basis

Comments from the CEO

In today’s Financial Statement 2019, Adapteo Group reported a Rental sales of
EUR 35.1 (34.9) million for the fourth quarter. In constant currencies, Rental
sales increased by 2%. Net sales amounted to EUR 49.6 (55.5) million. In
constant currencies, Net sales decreased by 9%. Comparable EBITDA was unchanged
at EUR 20.6 (20.6) million. Average rent per square metre amounted to EUR 159
(156). Free cash flow increased to EUR 36.5 (11.0) millions, which underlines
the discretionary nature of the growth capex. The Board of Directors proposes a
dividend of EUR 0.12 per share for the fiscal year 2019.

“The fourth quarter of 2019 continued with a lower market activity in our main
market. Given the weak market during the second half of the year, Adapteo
delivers a satisfying performance driven by focused and targeted cost control
and performance management. We present a stable profit and further strengthen
our market position through our intensified focus on our commercial- and
operational excellence programmes. Throughout the year, we have seen a
materially lower tender activity in the Swedish public sector, which impacted
our revenues during the second half of the year, with effects also on coming
quarters”, Philip Isell Lind af Hageby, President and CEO, Adapteo Plc.

The industry’s long-term needs in the public sector was reflected in a report by
Sveriges Kommuner och Regioner (SKR) in November 2019, stating that until year
2022, the Swedish municipalities need to build 730 daycare centres, 390 schools,
35 upper secondary schools and 370 group and retirement homes, together with 150
elderly care homes, in order to fulfil the increasing need for space.
Simultaneously, there is a sign of a stronger penetration of prefabricated
buildings and adaptable space solutions. This brings comfort in our mid-term
market growth projections.

“Although we saw a materially lower market activity in 2019, the needs in the
public sector remain and our mid-term view of the favourable market development
stays unchanged. An old building stock with substantial renovation needs,
urbanization, demographic changes, growing number of pupils in school and
children in daycare centres, and a constantly growing elderly population are all
examples of the primary market drivers that are expected to generate persistent
demand for our solutions, today and tomorrow”, Philip Isell Lind af Hageby,
President and CEO, Adapteo Plc.

Conference call

A conference call with a presentation for investors, analysts and media will be
held today at 09.00 CET. The presentation will be held via teleconference and
webcast by President and CEO Philip Isell Lind af Hageby and CFO Erik Skånsberg.
The session will start with a presentation, followed by a Q&A session and will
be held in English. A recorded version will be available after the conference at
adapteogroup.com under Investors.

Dial in numbers and links to conference call:

Finland: +358981710522, Sweden: +46850558365, UK: +443333009034

Link to webcast: https://tv.streamfabriken.com/adapteo-q4-2019

For additional information, please contact

Philip Isell Lind af Hageby, CEO, +46 73 022 19 36, [email protected]
Niklas Alm, SVP Investor Relations, +46 708 24 40 88, [email protected]

The information above is such that Adapteo Plc is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 07:30
CET on February 14th 2020.

Adapteo in brief

Adapteo is a leading Northern European provider of modular space solutions. We
operate in Sweden, Finland, Norway, Denmark and Germany. Adapteo is a new brand
with over 30 years of experience, born from the acquisition of Nordic Modular
Group and the demerger from Cramo. We offer premium modular space solutions to
schools, daycare centers, offices, accommodation and events for temporary and
permanent needs. In 2019, Adapteo’s net sales were EUR 216 million.

A changing society needs adaptable space. At Adapteo, we make sure everyone has
the right kind of space, so that people can grow, and societies can move ahead.
We create flexible modular spaces that are good for the planet and great for the
future. Adapteo is listed on Nasdaq Stockholm.

www.adapteogroup.com

Space to grow

Attachments: