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:
People
The most attractive employer
- Focusing on attracting and growing the right people
- Empowering Building Performance culture
- Leading people and performance with passion and care
Digitalisation
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
Sustainability
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
Customer experience
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:
Outstanding installation and maintenance throughout our regions and disciplines
Balanced base business in the right locations and with the right people
Building a base for higher value-added solutions
Services along the lifecycle
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
Adding value through Advisory, Engineering and Digital
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:
Operational excellence in the field
Empowering our people to serve customers
Focus on digitalised customer interface
Continued focus on efficiency
The best experts in the right places
Presence close to our key long-term customers
Majority of delivery is run by own employees
Segment expertise and commercial excellence
Specialised customer engagement in key customer segments
Commercial excellence for our different business types
Customer-centric solutions
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 revenue 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.