Strategy
Our strategy – Sustainable Growth We launched our updated strategy, “Sustainable Growth”, in May 2022. Our strategy delivers on Caverion’s purpose of enabling performance and people’s wellbeing in smart and sustainable built environments. What makes our company unique is that we create sustainable impact for every customer with the solutions we design and deliver, reliably and transparently every time . Sustainable impact for our customers means we develop and deliver long-lasting solutions for their built assets and improve sustainability and energy efficiency of their built environment. During this strategy period, we aim to increase the share of our solutions business and grow both organically and by balanced M&A.
We are ready for sustainable growth Our strategy is supported by megatrends in our industry, including:
The megatrends have developed in our favor in recent years and support our growth. We are seeing a general increasing interest for services supporting sustainability, such as energy management and advisory services, driven by regulation and the expected governmental and EU stimulus packages supporting investments in green growth. Our strategic themes build the bridge between the previous and the future strategy periods. We continue to focus on:
The most attractive employer Focusing on attracting and growing the right people Empowering Building Performance culture Leading people and performance with passion and care
More valuable solutions to our customers We have own digital products and capabilities core to delivery or giving us a competitive edge We digitalise our processes to empower people to serve customers reliably and transparently
Sustainable value for our stakeholders We maximise our positive handprint by advising our customers We comply with requirements supported by meaningful reporting and supplier collaboration
The best customer experience We stay true to our purpose and our promise of Building Performance in every interaction Customer experience is a priority in every business decision
Building a clear differentiation We create sustainable impact for every customer with the solutions we design and deliver, reliably and transparently every time. We build our differentiation by: focusing on four carefully selected winning capabilities that guide our way of working both internally and with our customers and investing in three business focal areas that define the development of our business portfolio going forward.
Business focus Our future business focus includes:
Balanced base business in the right locations and with the right people Building a base for higher value-added solutions
We grow our managed services business through facility management contracts We use facility management contracts as a basis to organically grow our property management competencies We use our presence to acquire new installation and maintenance business throughout disciplines
We harvest the full value from our current customer base and shifting to higher margin business with better managed risks We build deep capabilities in energy efficiency and sustainability , supported by megatrends, incentives and regulation shift Our Advisory & Engineering learns from the field , and our installation and maintenance operations benefit from our deep expertise in technical solutions
Winning capabilities Our winning capabilities allow Caverion to differentiate and focus on a market full of opportunities. Our winning capabilities include:
Empowering our people to serve customers Focus on digitalised customer interface Continued focus on efficiency
Presence close to our key long-term customers Majority of delivery is run by own employees
Specialised customer engagement in key customer segments Commercial excellence for our different business types
Be at the core of our customers’ solutions Solutions designed with customers Solutions expertise shared and replicated
Our financial targets Caverion’s mid-term financial targets until the end of 2025 are: Cash conversion (LTM) : Operating cash flow before financial and tax items / EBITDA > 100% (unchanged) Profitability : Adjusted EBITA > 5.5% of revenue (unchanged) Organic r evenue growth: 3−4% p.a. over the strategy period M&A revenue growth : 2−3% p.a. over the strategy period (new target) Debt leverage : Net debt/LTM Adjusted EBITDA < 2.5x Dividend policy: Distribute at least 50% of the result for the year after taxes, however, taking leverage level into account.
Caverion in brief Customers Business units Sustainability Innovation History Policies