Sustainable Growth
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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
 
 
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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 revenue growth: 3−4% p.a. over the strategy period**
  • M&A revenue growth2−3% 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.

* Adjusted EBITA is defined as Operating profit + amortisation and impairment on intangible assets. Adjustments according to defined Items affecting comparability (IAC).

** Previously organic revenue growth > 4% p.a. over the cycle supported by bolt-on acquisitions in selected growth areas and complementary capabilities, Services revenue growth > market growth, Services revenue > 2/3 of Group revenue.

*** Previously Net debt/EBITDA < 2.5x based on calculation principles confirmed with the lending parties, containing certain agreed adjustments. Adjusted EBITDA is affected by the same adjustments as adjusted EBITA, except for restructuring costs, which do not include depreciation and impairment relating to restructurings.