The year 2016 was a difficult one for Caverion. The core of our strategy remained intact. However, the Group had profitability problems due to resource overcapacity and challenges in the project business.
From May 2016, Caverion focused on restructuring its operations and reviewing the project portfolio. The challenges related to project management and execution mainly related to the Sweden, Denmark-Norway, Germany and Industrial Solutions divisions. The total amount of jobs impacted by the restructuring actions in 2016 was 1,060. There were also several changes in Caverion's management board.
New Projects and Services functions were established to respond to the challenges in executing and managing projects and help secure the targeted utilisation rate in the service business. During the year, the company also cut back on internal development projects to lower fixed costs and to focus on the implementation of the most important development projects.
Caverion's strategic financial targets remained the same during the year. However, reaching the targets will take more time due to the restructuring and other strategic changes.
The strategy for 2017–2020 is under preparation and will be published during 2017. Ari Lehtoranta started as Caverion's new CEO on 1 January 2017.
Our vision, mission and values
Caverion’s vision is to be a leading European provider of advanced and sustainable life cycle solutions for buildings and industries.
Our mission is to design, build, operate and maintain user-friendly and energy-efficient solutions for buildings, infrastructure and industrial plants.
Our values are being one step ahead, cooperation, responsibility and high performance.
The group has defined four megatrends that are changing the market in which Caverion operates. The megatrends drive Caverion’s strategy and support the future demand for our business.
|Improving energy efficiency|
Guidance for 2017
Caverion estimates that the Group’s revenue will remain at the previous year's level in 2017 (2016: EUR 2,364 million). Caverion estimates that the Group’s EBITDA excluding restructuring costs will more than double in 2017 (2016: EUR 15.6 million).
Long-term financial targets
Our long-term financial targets are:
- EBITDA over 6% of revenue
- Average annual revenue growth >10%
Progress in reaching long-term financial targets 2013–2016
The key strengths of Caverion are:
- Life cycle solutions
- Geographically extensive operations in 12 countries and strong market position in all key operating countries
- Strong technical competence and own innovative solutions
- Energy efficiency always integrated into services and solutions
- Prerequisites for a strong, stable cash flow
- Competence and proven experience in growing through acquisitions