Strong growth in Central Europe organically and through acquisitions

We aim for selected acquisitions, increasing the share of service and maintenance and developing Design & Build projects.

 
Caverion targets the average annual growth in revenue of more than 10 % until the end of 2016. Approximately half of the growth across the cycle is sought organically, but also acquisitions are necessary in order to achieve the target.

Half of the growth from acquisitions

The larger acquisitions are sought especially in Germany and German-speaking countries. As the sixth largest building systems company in Europe, Caverion has good opportunities to strengthen its position in the fragmented Central European markets through acquisitions. In these markets, most of the competitors are smaller companies offering typically only a few individual technical systems.

Caverion has a clear track record in growing through acquisitions: in 2001–2010, it made four important acquisitions (Calor, ABB Building Systems, MCE AG, caverion GmbH), which contributed to the improvement of its revenue. From 2002 to 2010, revenue in building systems and industrial services increased by 15% annually on average (cumulative annual growth).

The objective is to continue making selective acquisitions on a regular basis.

Foundation for organic growth: long-term service agreements

Caverion is seeking organic growth particularly in service and maintenance, which accounted for 55% of our business in 2013. In particular, we aim to increase the share of long-term service and maintenance agreements. They are less susceptible to economic cycles and a good source of additional work.

We focus on the development of service and maintenance concepts, such as facility management and productization of service packages. ServiFlex is our service concept which enables our customers to combine a wide variety of building services in one single agreement, flexibly according to their needs. By developing uniform processes, service descriptions, documentation and marketing tools we are able to facilitate the sales of our services. At the same time, consistent quality of our services is guaranteed across the countries.

Opportunities for growing service and maintenance are favorable in all the countries in which we are present. However, its lower share of business in Central Europe will open up particular opportunities for us.

Focus on developing Design & Build projects

In project business, Caverion aims to increase the share of total deliveries of building systems and Design & Build projects.

Currently, approximately one-third of our project revenue comes from Design & Build projects, in which Caverion is involved in the project from the very beginning, responsible for the design and delivery of the systems and for subcontractors. Our goal is increase their share, as projects that require extensive competence and resources are where we excel, enabling us to stand out from our competitors.