Net sales and operating profit adversely affected by Covid-19, cash flow improved

Delete Group Oyj | Stock Exchange Release 21 August 2020 at 16:00 (EEST)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

DELETE GROUP OYJ                                                  

Interim Financial Statements January–June 2020 (IFRS, IAS 34, unaudited)

The Demolition Services is reported in this report in accordance with IFRS 5 “Assets Held for Sale and Discontinued Operations” and is not included in the financials for continuing operations. More information in the notes section.KEY POINTS OF APRIL–JUNE 2020

  • Net sales decreased by -26% to EUR 26.2 (Q2 2019: 35.2) million
  • EBITDA decreased by EUR -1.4 million to EUR 2.2 (3.6) million
  • EBIT decreased by EUR -1.6 million to EUR -1.1 (0.5) million
  • Operative cash flow increased by EUR 1.7 million to EUR -0.4 (-2.1) million

KEY POINTS OF JANUARY–JUNE 2020

  • Net sales decreased by -16% to EUR 48.3 (1H 2019: 57.7) million
  • EBITDA decreased by EUR -1.5 million to EUR 1.6 (3.1) million
  • EBIT decreased by EUR -1.5 million to EUR -4.7 (-3.2) million
  • Operative cash flow increased by EUR 6.4 million to EUR 0.9 (-5.5) million
  • Net debt decreased by 2% to EUR 122.7 (125.5) million
  • Demolition Services businesses in Sweden were divested in March 2020

KEY FIGURES

46/2020 46/2019 Change 16/2020 16/2019 Change 1-12/2019
Net sales, MEUR 26.2 35.2 -26% 48.3 57.7 -16% 125.8
EBITDA1), MEUR 2.2 3.6 -40% 1.6 3.1 -48% 11.7
Adjusted2) EBITDA, MEUR 3.2 4.0 -19% 3.2 3.6 -10% 13.2
Adjusted EBITDA, % of sales 12.3% 11.3% 1.0% pts 6.6% 6.2% 0.4% pts 10.5%
EBIT, MEUR -1.1 0.5 -327% -4.7 -3.2 -50% -1.0
Adjusted EBIT, MEUR 0.0 0.8 -98% -3.1 -2.7 -17% 0.5
Adjusted EBIT, % of sales 0.1% 2.3% -2.2% pts -6.5% -4.6% -1.9% pts 0.4%
Profit (-loss) for the period, Continuing operations MEUR -1.1 -2.2 46% -8.3 -7.6 -9% -9.4
Profit (-loss) for the period, MEUR 1.0 -1.6 -166% -6.7 -8.4 -20% -42.1
Operative cash flow, MEUR -0.4 -2.1 -81% 0.9 -5.5 -116% 1.7
Net debt3), MEUR 122.7 125.5 -2% 122.7 125.5 -2% 122.4

Information about the formulas and Alternative Performance Measures are presented in the notes section of this interim review. All the figures represented are statutory unless otherwise mentioned.

OUTLOOK FOR 2020

Previously withdrawn outlook, 3 April 2020:

Due to the COVID-19 pandemic and related uncertainty of economic development, Delete withdrew its outlook for 2020 on 3 April 2020. Delete will publish its outlook again when the predictability of business improves and the financial performance for the year 2020 can be better assessed. As a result of the pandemic, certain industrial customers in the Cleaning Services business have postponed maintenance shutdowns scheduled for the second quarter until later in 2020 or 2021.

Outlook for 2020, as announced on 25 February 2020 and withdrawn on 3 April 2020:

The demand for Cleaning Services is expected to grow in 2020. Recycling waste volumes are expected to remain stable in 2020 and the market demand for recycled fuel is expected to gradually improve during 2020 thereby improving Recycling Services’ profitability.

Delete Group’s continued operations’ operating profit is expected to improve in 2020.

TOMMI KAJASOJA, CEO OF DELETE GROUP:

“Given the low expectations, the second quarter performance was reasonable. The COVID-19 pandemic challenges were well mitigated by internal efficiency actions partly reducing the impact of low sales on profitability. As anticipated, the main impact of the pandemic in the second quarter was that the scheduled Cleaning Services shutdowns were almost completely postponed to the second half of 2020, or to the first half of 2021. Further postponements of shutdowns are anticipated to elevate the customers’ production process risk.

Net sales of Cleaning Services deteriorated by 25% in Q2 2020 with the daily assignments and operations holding on a reasonably good level and exceeding the first quarter’s level. However, the postponements of the normal spring shutdowns left a clear gap in the sales compared to the previous year. As a result of well managed and executed resource planning and required temporary layoffs, the adverse effects on EBITDA were partially mitigated. Overall, the profitability declined slightly, due to the lack of shutdowns.

Recycling Services net sales declined by 26% in Q2 2020, mainly due to the pandemic related slowdown of incoming waste volumes and to some degree due to a key customers decision to insource waste processing, while the entry barrier for such activity remains high. However, Recycling Services’ profitability improved from the previous year in both absolute and especially in relative terms, enabled by improved production efficiency and steady exit quotas secured for recycled fuel.

Our cashflow clearly exceeded the previous year’s level, supported with the natural decline in working capital resulting from the lower sales and our tightly controlled investments. In addition to optimizing the operative resources, we also extended actions to the administrative functions to further improve our efficiency. Some of the impacts of these actions are not yet visible in the second quarter results. To further protect the cash flow some fleet investments have been deferred, while the fleet maintenance programs have continued on schedule to secure operational capabilities.

The Demolition Services divestment process is ongoing in Finland, and we expect that it will take more time to be completed given the current general market uncertainty. Delete’s Demolition Services business in Finland is in good shape and currently delivers positive cash flow. Since our self-standing incorporation of the business in late 2019, it has been executing its growth strategy well. In August 2020 we announced our plan to also assess the divestment of the Recycling Business, which would enable us to focus and allocate additional resources to the long-term development of the Cleaning Services business.

We will continue to enforce tight cost and cash flow controls and prepare ourselves for quick manoeuvring with the health and safety as well as efficiency aspects in mind, if a second wave of COVID-19 interferes with the planned second half assignments. We will continue to follow the health and safety precautions every day, protecting not only our employees, but also our customers and partners we are in contact with. Throughout the pandemic, we have sustained a fully operational team with the ability to execute all the tasks as usual.

Entering the third quarter, we have gained more visibility on the second half, but still with uncertainty related to a possible second wave of COVID-19. We are cautiously optimistic on the second half workload as the autumn shutdown season is commencing with several schedules confirmed by our customers. In the medium and long term, we believe that the megatrends supporting our business have not changed and remain supportive, while some uncertainty for the demand remains in the short term.

MARKET ENVIRONMENT

Cleaning Services

The underlying core demand for Cleaning Services is resilient and expected to remain stable. The industrial shutdown schedule might see some further postponements but is expected to be on the same level in 2020 as in 2019, despite the shift in schedules from the first half of the year to the second half. However, further postponements due to the COVID-19 implications might take place. Customers continue to demand capabilities to handle increasingly complex assignments with high-quality environmental, health and safety standards, which favour large professional players like Delete Group.

Recycling services

Increasing environmental awareness continues to drive improvements and new regulations, such as the EU’s 70% recycling target by 2020 and the landfill ban on construction and demolition waste. Regulatory development in the EU Circular Economy Action plan and national legislation as well as generally increasing sustainability awareness continue to support the growing demand for recycling services. The market demand for recycled fuel (REF) has continued at a low but stabilised level and is expected to develop favourably during 2020. The COVID-19 may have a continuing negative impact on recycling volumes in the short- and mid-term.

NET SALES

In the second quarter, Delete Group’s net sales of continuing operations were EUR 26.2 (35.2) million, representing a year-on-year decline of 25%.

The net sales of Cleaning Services were EUR 21.6 (28.7) million, declining by 25%. The daily assignments stayed on a reasonable level for both the industrial segment and sewer services. However, as a result of the COVID-19 restrictions, the spring season shutdowns were almost completely postponed to the second half of 2020, or to 2021.

Recycling Services’ net sales declined by 26% to EUR 5.7 (7.7) million on the back of two main drivers: COVID-19 related temporary slow-down, which covered for the majority of the decline and the loss of a key customer, deciding to insource its waste processing.

The Group’s net sales in January–June amounted to EUR 48.3 (57.7) million. The decline of 16% is mainly caused by the postponed shutdowns in Cleaning Services and the COVID-19 related slow-down of waste volumes.

NET SALES BY SEGMENT

MEUR 46/2020 46/2019 Change 16/2020 16/2019 Change 1-12/2019
Cleaning Services  21.6    28.7   -25%  39.3    45.8   -14% 102.8
Recycling Services  5.7    7.7   -26%  11.5    14.1   -19% 28.1
Eliminations -1.2   -1.2   -3% -2.6   -2.3   14% -5.1
Group total  26.2    35.2   -26%  48.3    57.7   -16% 125.8

The net sales by segment information includes intercompany sales, which is eliminated separately to form consolidated Group sales, and is the basis for reported growth measures for the segments.

FINANCIAL PERFORMANCE

The Group’s adjusted operating profit (EBIT) during the second quarter of 2020 decreased by EUR -0.8 million from the previous year to EUR 0.0 (0.8) million. The volume effect of declined sales was mitigated to a high degree by operational improvements in Recycling Services and restructured cost base for Administration. The restructuring of Administration has so far mainly affected Sweden, leaving potential for further optimization pending the completion of Demolition Services divestment. The second quarter EBIT reported under Administration includes EUR 0.9 million of transaction costs related to the partially completed divestment of the Demolition Services, and the amount is adjusted for as an item affecting comparability on adjusted operating profit.

In the second quarter, Cleaning Services’ EBIT-% weakened to 6% (12%) caused by declined sales due to postponed industrial shutdowns and some unfavourable mix effect, while productivity was reasonably well managed by operational resource planning and temporary layoffs. As a result of waste sorting efficiency and productivity improvements, Recycling Services EBIT-% improved clearly to 8% (-1%), even if the volumes were not on a desired level. A three-day business interruption caused by a fire incident at Rusko recycling plant in May had only a minor effect on the operations and profitability in the second quarter.

The Group’s adjusted EBIT for January–June 2020 amounted to EUR -3.1 (-2.7) million. The Group’s profitability was negatively impacted by the Cleaning Services profitability, which suffered from the low sales in the second quarter due to the postponed shutdowns. Clear improvements in Recycling Services’ profitability and reduced administration cost base had a positive impact on Group’s profitability.

EBITDA BY SEGMENT

MEUR 46/2020 46/2019 Change 16/2020 16/2019 Change 1-12/2019
Cleaning Services  3.3    5.4   -38%  4.0    6.4   -38% 17.0
Recycling Services  1.1    0.5   122%  1.8    1.2   57% 3.3
Administration -2.3   -2.3   1% -4.2   -4.5   -6% -8.6
Group total  2.2    3.6   -40%  1.6    3.1   -48% 11.7

EBIT BY SEGMENT

MEUR 46/2020 46/2019 Change 16/2020 16/2019 Change 1-12/2019
Cleaning Services  1.1    3.4   -69% -0.5    2.6   -118% 9.1
Recycling Services  0.4   -0.1   401%  0.4   -0.1   537% 0.8
Administration -2.5   -2.8   11% -4.7   -5.6   17% -10.8
Group total -1.1    0.5   -327% -4.7   -3.2   -50% -1.0

In April–June, the net financial expenses amounted to EUR -0.1 (-2.5) million and in January–June to EUR -3.6 (-4.5). The decrease was mainly related to an unrealized favourable SEK exchange rate translation effect on intercompany lending in the second quarter. In April–June, profit before taxes amounted to EUR -1.1 (-2.0) million and in January–June to EUR -8.3 (-7.6) million. In April–June, the income taxes amounted to EUR 0.1 (-0.1) million and in January–June to -0.0 (-0.3) million. In April–June, the net result for the financial period amounted to EUR -1.0 (-2.2) million and in January–June to EUR -8.4 (-8.0) million.

In January–June, the net result for the financial period including Assets held for sale amounted to EUR 1.0 (-1.6) million. Condensed financials of IFRS 5 classified Assets held for sales are reported in the notes section.

FINANCING AND FINANCIAL POSITION

In April–June, cash flow from operating activities was EUR -0.4 (-2.1) million. The increase was driven by lower net working capital6) on the back of lower sales year-over-year.

Delete Group’s cash and cash equivalents at the end of June 2020 including cash in Assets held for sale were EUR 5.0 (3.4) million. The Group’s interest-bearing debt was EUR 127.8 (128.9) million, consisting mainly of a EUR 109.8 million secured bond, a EUR 7.0 million drawn revolving credit (SSRCF) and lease liabilities. At the end of June, the Group had undrawn revolving credit facilities of EUR 18.0 million to be used for general corporate purposes, acquisitions and capital expenditure. The revolving credit facility’s quarterly maintenance covenant for debt leverage of drawn SSRCF over adjusted EBITDA was complied with at the end of June.

At the end of June 2020, the Group’s net debt amounted to EUR 122.7 (125.5) million, decreasing mainly due to lower lease and instalment credit liabilities, the main part of which were carved-out with the divested Demolition business in Sweden.

After the reporting period on 10 July 2020, the SSRCF maturity was extended until 31 December 2020, mainly under the existing terms, in order to secure the working capital financing needs of the Group during the second half of 2020. The company has also initiated an assessment of the options on how to secure the long-term financing of the Group as the outstanding EUR 109.8 million senior secured floating rate notes will mature on 19 April 2021 and are thus reported as current liabilities.

The balance sheet total at the end of June 2020 was EUR 185.5 (232.5) million, decreasing mainly because of a goodwill impairment at year end 2019 for the Assets held for sale. Property, plant and equipment totalled EUR 32.9 (45.0) million decreasing mainly due to IFRS 5 classification of Assets held for sale. The equity ratio5) was 11.7% (26.8%) and the decline was mainly caused by the goodwill impairment adversely effecting equity.

Under IFRS 5, Assets held for sale are included in the Group’s balance sheet, but compiled and reported under separated specified line items, amounting to EUR 44.4 million of assets and EUR 8.6 million of liabilities.

Key figures 4-6/2020 4-6/2019 Change 1-6/2020 1-6/2019 Change 1-12/2019
Return on Equity, % 4.7% -2.5% -288% -26.9% -12.7% 113% -149.3%
Net debt, MEUR 122.7 125.5 -2% 122.7 125.5 -2% 122.4
Equity ratio, % 11.7% 26.8% -56% 11.7% 26.8% -56% 14.5%

CAPITAL EXPENDITURE AND CORPORATE TRANSACTIONS

Capital expenditure in intangible and tangible assets for April–June 2020 was EUR 0.5 (2.6) million. For January­–June, capital expenditure in intangible and tangible assets was EUR 1.5 (4.3) million. There were no acquisitions during January–June.

R&D EXPENDITURE

In January–June 2020, R&D-related expenditure was immaterial and was related to the minor development of processes and tools.

KEY EVENTS AFTER THE REPORTING PERIOD

On 10 July 2020, the Super Senior Revolving Credit Facility (SSRCF) maturity was extended until 31 December 2020, mainly under existing terms. The third quarter maintenance covenant has been waived to make room for anticipated working capital needs and the limit has been lowered (from EUR 25 million) to EUR 20 million upon extension and will be lowered further to EUR 15 million on 30 November, aligned with Sweden’s Demolition Services divestment and the resized Delete Group.

On 21 August 2020, Delete announced its plan to assess and explore various possibilities to divest the Recycling Services business. The company has mandated financial advisors to explore various possibilities for the sale of the business area. A consent for the divestment has been received from the noteholders of Delete’s senior secured floating rate notes in November 2019, on the condition that the net proceeds received from such divestments would be used towards early partial redemption of the notes.

SUMMARY OF SIGNIFICANT RISKS AND RISK MANAGEMENT

Delete Group conducts an extensive annual risk assessment analysis as a result of which risk management capabilities are updated and reviewed and approved by the Board of Directors.

The Group’s key risks are divided into strategic, operative and financing risks.

Operational risks are mainly related to uncertainty and a lack of visibility due to COVID-19 and a potential second wave affecting Finland and Sweden, project execution and the integration of acquired businesses both quality-wise and financially. The internal control environment is under constant development to improve preventative measures.

Financing risks are mainly related to refinancing, credit and liquidity, all of which may be further affected by COVID-19 related uncertainties.

There are risks related to commercially acceptable terms on the divestment process of Demolition and increased uncertainty related to COVID-19.  

Other uncertainties are related to the market environment as well as the successful implementation of the Group’s transformation strategy, including risks relating to outcome of operational improvement plan for increased profitability, uncertainty related to capturing synergies and risks related to targeted bolt-on acquisitions, personnel and recruitments.

The Group has not identified other relevant changes that can be expected to have a significant influence on the business, given the risks mentioned hereinabove, at the end the second quarter in 2020.

SHARES AND SHAREHOLDERS

The number of registered shares in Delete Group Oyj is 10,858,595 P-shares and 3,089,649 C-shares. All of the shares have one vote each. The Group is owned by Ax DEL Oy (87% of the shares) and a group of key employees and other minority investors (13%). The Group does not hold any of its own shares.

ANNUAL GENERAL MEETING AND BOARD AUTHORISATIONS IN EFFECT

The Annual General Meeting of Delete Group Oyj Shareholders held on 8 April 2020 adopted the Financial Statements and discharged the members of the Board of Directors and the CEO from liability for the financial year 1 January–31 December 2019. The Annual General Meeting resolved that no dividend will be paid for the fiscal year 2019.

Martin Forss, Åsa Söderström Winberg, Ronnie Neva-aho and Christian Schmidt-Jacobsen were re-elected as members of Board of Directors. Convening after the Annual General Meeting, the Board of Directors elected Martin Forss as its chairman.

KPMG Oy Ab was elected to continue as the Auditor of the company and Teemu Suoniemi, Authorised Public Accountant, will act as the Principal Auditor.

The Chairman of the Board will be paid EUR 50,000 and the Board members EUR 22,000 as remuneration for 2020. The appointed members of the Audit Committee and the Project Committee will be paid EUR 4,000 as additional remuneration and the appointed members of the Remuneration Committee EUR 2,000. Axcel Management’s Christian Schmidt-Jacobsen will not be paid remuneration. It was resolved that the remuneration for the Auditor shall be paid according to the Auditor’s invoice.

STATEMENT OF ACCOUNTING POLICIES FOR INTERIM FINANCIAL STATEMENTS

These interim financial statements have been prepared according to the IAS 34 Interim Financial Reporting -standard. The same accounting standards have been used as in the Financial Statements.

Delete Group Oyj complies with half-yearly reporting according to the Finnish Securities Markets Act and discloses interim reviews for the first three and nine month’s periods of the year, in which key information regarding the company’s financial situation and development will be presented. The financial information presented in this interim financial statement is unaudited.

FINANCIAL CALENDAR 2020

Delete Group Oyj will publish the interim review January–September 2020 on 13 November 2020.

ALTERNATIVE PERFORMANCE MEASURES USED IN FINANCIAL REPORTING

Delete Group Oyj has adopted the guidelines of the European Securities and Market Authority (ESMA) on Alternative Performance Measures. In addition to the IFRS-based key figures, the company will publish certain other generally used key figures that may, as a rule, be derived from the profit and loss statement and balance sheet. The calculation of these figures is presented below. According to the company’s view, these key figures supplement the profit and loss statement and balance sheet, providing a better picture of the company’s financial performance and position.

MEUR 4-6/2020 4-6/2019 1-6/2019 1-3/2019 1–12/2019
EBIT -1.1 0.5 -4.7 -3.2 -1.0
Adjustments 1.1 0.4 1.6 0.5 1.5
Adjusted EBIT 0.0 0.8 -3.1 -2.7 0.5
       
MEUR 4-6/2020 4-6/2019 1-6/2019 1-3/2019 1–12/2019
EBITDA 2.2 3.6 1.6 3.1 11.7
Adjustments 1.1 0.4 1.6 0.5 1.5
Adjusted EBITDA 3,2 4.0 3.2 3.6 13.2

FORMULAS

1) EBITDA = operating profit + depreciation and amortisation costs

2) Adjustment definition: adjustments are material items outside the ordinary course of business affecting comparability, e.g. acquisition related expenses, restructuring related expenses and other material extraordinary costs.

3) Net debt = interest bearing liabilities, lease liabilities and instalment credit liabilities – cash and cash equivalent assets

4) Organic growth: net sales from acquired businesses are considered inorganic for 12 months after the acquisition, and not accounted for contributing to organic growth for the said period.

5) Equity ratio = equity / (assets – prepayments)

6) Net working capital = other than cash and cash equivalent current assets – other than net debt related current liabilities

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Amounts in thousands of euros

Continuing operations

CONDENSED NOTES

Accounting policies

These interim financial statements have been prepared according to the IAS 34 Interim Financial Reporting -standard. Delete Group Oyj complies with half-yearly reporting according to the Finnish Securities Markets Act and discloses interim reviews for the first three- and nine month’s periods of the year, in which key information regarding the company’s financial situation and development will be presented. The financial information presented in this interim review is unaudited.

The accounting policies applied in this interim review are the same as those applied in the last annual financial statements.

IFRS 5: Assets held for sale and discontinued operations

In November 2019, Delete Group announced that it was exploring opportunities to sell the Demolition Services in full or in part. The company has received the required approvals for the divestments from the creditors and the sales process has been completed for the Swedish entities and is ongoing for the Finnish part.

The Demolition Services business is reported in this report in accordance with IFRS 5 “Assets Held for Sale and Discontinued Operations” and is not included in the financial statements for continuing operations. The figures in the statement of income and the items related to it, including comparison figures, have been stated to show the discontinued operations separately from continuing operations.

The second quarter sales and operating profit in Divested Operations consists mainly of a favourable resolved customer dispute.

Operating profit (EBIT)

Operating profit (EBIT) consists of sales and other operating income less costs of materials and services, costs of employee benefits and other operating expenses as well as depreciation, amortisation and impairment losses. Exchange rate differences resulting from working capital items are included in operating profit.

Financing

On 10 July 2020, the Super Senior Revolving Credit Facility (SSRCF) maturity was extended until 31 December 2020, mainly under existing terms. The third quarter maintenance covenant has been waived to make room for anticipated working capital needs and the limit has been lowered (from EUR 25 million) to EUR 20 million upon extension and will be lowered further to EUR 15 million on 30 November, aligned with Sweden’s Demolition Services divestment and the resized Delete Group.

The company has also initiated an assessment of the options on how to secure the long-term financing of the Group as the outstanding EUR 109.8 million senior secured floating rate notes will mature on 19 April 2021 and are thus reported as current liabilities.

SEGMENT REPORTING

The Group has two reportable segments for the Continuing Operations, Industrial Cleaning Services and Recycling Services, which are the Group’s business areas. The reporting segments have been aggregated from the group’s three operating segments: the operating segments for Industrial Cleaning Services in Finland and Sweden have been combined as reportable segments as they are considered to be similar and having similar economic characteristics.

The Industrial Cleaning Services business serves, among others, industrial customers, energy companies, shipyards and construction sector companies in Finland and Sweden.

Delete Group’s Recycling Services receives and processes construction and industrial waste in the Helsinki metropolitan area and in the Tampere region.

Segment information is based on IFRS accounting principles applied in the group, and it is consistent with the group’s internal reporting.

The measure of profit or loss for the reportable segment is operating profit, which is regularly reviewed by the Group’s management team to make decisions about resources to be allocated to the segment and to assess its performance.

Administration costs are not allocated to segments but are presented separately. Segment assets and liabilities are not presented as these are not regularly monitored by the management team.

Any transactions between segments are based on market prices. 

REVENUE STREAMS

BUSINESS COMBINATIONS

Delete Group had no business combinations during 1-6 2020. Sweden’s Demolition business was divested in March 2020 and in progress for Finnish demolition operations.

CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES

KEY EVENTS AFTER THE REPORTING PERIOD

On 10 July 2020, the Super Senior Revolving Credit Facility (SSRCF) maturity was extended until 31 December 2020 mainly under the existing terms. The third quarter maintenance covenant has been waived to make room for an anticipated working capital needs and the limit has been lowered (from EUR 25 million) to EUR 20 million upon extension and will be lowered further to EUR 15 million on 30 November.

On 21 August 2020, Delete announced its plan to assess and explore various possibilities to divest the Recycling Services business. The company has mandated financial advisors to explore various possibilities for the sale of the business area. A consent for the divestment has been received from the noteholders of Delete’s senior secured floating rate notes in November 2019, on the condition that the net proceeds received from such divestments would be used towards early partial redemption of the notes.

Delete Group Oyj

Board of Directors

FOR FURTHER INFORMATION

Ville Mannola, CFO of Delete Group Oyj

E-mail: ville.mannola@delete.fi

Tel. +358 400 357 767

Tommi Kajasoja, CEO of Delete Group Oyj

E-mail: tommi.kajasoja@delete.fi

Appointment requests via Helena Karioja, tel. +358 40 662 7373

www.delete.fi

DELETE GROUP IN BRIEF

Delete Group is a leading environmental full-service provider in the Nordics. The Group offers specialist competencies and specialised equipment through three business areas: Cleaning Services, Demolition Services (held for sale) and Recycling Services. Delete was formed in 2010 through the combination of Toivonen Yhtiöt and Tehoc and was acquired by private equity investor Axcel in 2013. Since 2011, Delete has made over 34 acquisitions within the cleaning services and demolition segments.

The Group is headquartered in Helsinki and employs approximately 900 professionals at over 36 locations in Finland and Sweden.

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