Events in 2014
New reporting structure
Caverion adopted a new reporting structure as of the beginning of 2014. The segments based on geographical areas (Building Services Northern Europe and Building Services Central Europe) were replaced by one single operative segment that also includes the Group services and other items. The first interim report based on the new reporting structure was published on April 24, 2014 (interim report for January–March 2014).
Fredrik Strand was appointed President and CEO
In January, the Board of Directors appointed Fredrik Strand as President and CEO of Caverion Corporation. Strand took up the new position at the beginning of April. Before joining Caverion, Strand worked at Sodexo, where he was responsible for the company’s Nordic businesses. Caverion’s previous President and CEO Juhani Pitkäkoski stayed with Caverion and assumed responsibility as head of Mergers & Acquisitions.
Towards a more coherent Caverion
The transition from a financial holding model towards one, coherent Caverion made good progress. During the summer and autumn, we focused increasingly on developing and implementing a common operating model and processes and tools for all of our divisions.
Focus on life cycle solutions
The core of our strategy remained intact, but we specified the wording for our vision: Our aim is to be a leading European provider of advanced and sustainable life cycle solutions for buildings and industries. The key focus areas of our strategy were specified to emphasise the role of strong corporate image, innovative and advanced solutions, excellent leadership, and operational excellence as enablers of profitability and growth.
Consistent service offering
In the spring and summer, we introduced a new way of presenting our service offering, which consists of service areas, disciplines, and client segments. A new slogan, “Life Cycle Solutions for Buildings and Industries”, was taken into use. It reflects that we assume responsibility for the entire life cycle of properties and industrial plants.
Positive development in order backlog
Our order backlog strengthened by 7% in 2014. We received a number of large orders during the year. For example, we secured a EUR 33 million contract to deliver all building systems to the new Henninger Tower in Frankfurt am Main, Germany. As the technical main contractor for the project, Caverion will also be responsible for design and engineering and project management.
Progress with measures to improve profitability in the project business
The ongoing profitability improvement measures in our project business proceeded as planned. We reviewed our entire project base in all divisions and revised the cost estimates and provisions of low performing projects.
The tallest building in Austria praised for sustainable solutions
Thanks to Caverion’s environmentally friendly and energy efficient solutions, the tallest building in Austria, the DC Tower, achieved a shared second place in the renowned Best Tall Building Europe competition. The building features a variety of sustainable solutions such as advanced heat recovery and rain drainage systems, among others.
Joint development work
During the year, we worked on developing the organisations in both project and service and maintenance business to enable harmonisation of operating models and sharing of knowledge across operating countries. Development of business is carried our in a centralised manner, while divisions are responsible for operative work. We initiated a number of development projects, including those related to improving the efficiency of mobile service process and introducing common system tools, for example.
The first Caverion Spirit
Our first personnel survey as an independent company was conducted in autumn with the entire Caverion personnel invited to contribute to the development of our company. The survey had active participation with the response rate of 78%. According to the survey results, 75% of the respondents were overall satisfied in Caverion as a place to work.
New members in the Group Management Board
New members were recruited to the Group Management Board: Werner Kühn was appointed as as head of division Germany, and Thomas Lundin as head of division Sweden. Niclas Sacklén was appointed to head division Eastern Europe. In addition, several other key appointments were made in Group functions and divisions.
Award-winning product development
In line with our strategy, we focused on in-house product development. During the year, Caverion submitted 10 patent applications concerning new solutions. In Finland, Caverion was involved in developing an apartment-specific fire extinguishing system, which received the Finnish Fire Protection Fund’s Innovation Award, and particularly improves the homesafety of elderly people. In Norway, Caverion's ClimaCeil suspended ceiling element won the competition arranged by the cities of Oslo and Bergen in search of solutions to improve the indoor air quality and ventilation systems of schools.