Review by the President and CEO
July 26, 2013
Trading in Caverion Corporation’s shares began - I would like to warmly welcome all of our new shareholders!
Caverion Corporation was established through the partial demerger of YIT Corporation on June 30, 2013 when YIT’s Building Services and Industrial Services operations were transferred to an independent company. Trading in Caverion Corporation’s shares at Helsinki Stock Exchange began on July 1, 2013. In connection with YIT’s demerger, YIT Corporation’s shareholders received as demerger consideration one Caverion share for each YIT share owned. Consequently, Caverion had approximately 39,000 shareholders at the beginning of trading. I would like to warmly welcome all of our new shareholders!
We aim to be the leading and the most efficient building systems company in Europe. Our strategy has three main objectives:
Firstly, we will continue to focus on improving the profitability of Building Services Northern Europe. There are extensive efficiency improvement measures under way in the segment, and we expect their impact to be visible during the second half of 2013. As a result of the Demerger we now have a tighter grip on managing the business. The previously announced measures to carry out cost savings of EUR 40 million have been executed and personnel cuts of 800 employees were carried out by the end of the 2012. As a result, the pursued cost savings have been reached. Nonetheless the cost savings measures have turned out to be inadequate. The aim is to decrease the number of personnel by further 600 employees in 2013; of these, personnel cuts amounting to approximately 400 employees were carried out in January - June. In Sweden unprofitable units have been closed down and the restructuring of the organization in northern Sweden and the Stockholm area is at the final stage. These measures have begun to have a positive impact on the profitability of the Swedish operations in the second quarter. We are also focusing on improving the profitability of the project business in Norway, especially in the capital region. Our service efficiency program is ongoing in all countries where we operate. As a result of the ongoing actions, we estimate the profitability of Building Services Northern Europe to improve during the rest of the year.
Secondly, we will also continue to seek strong growth, especially in Germany and German-speaking countries, both organically and through acquisitions. Caverion's market shares in Central European countries are smaller than in Northern Europe, which offers good opportunities for growth in these fragmented markets.
Finally, we pursue growth and profitability by putting an emphasis on long-term service agreements in the service and maintenance business, Design & Build projects and deliveries related to energy savings.