From the CEO
Fredrik Strand became Caverion’s President and CEO in April 2014. In this video, he talks about Caverion’s financial development and key actions in 2014, as well as the importance of life cycle solutions for the company’s future success. The transcript of the video is attached below.
Length of the video is 05:50 min.
I'm very happy that we managed to close the year 2014 in a very positive way.
We had an increasing order backlog. We closed the year with the revenue that was in line with our guidance, equivalent to last year. We also had a good improvement of EBITDA, mainly in the fourth quarter. And what is even more important, we had a negative working capital, giving us the possibility to develop our business further in a much more positive way.
Actions in 2014
In 2014, we secured our ability to develop Caverion to the future. We paid a lot of attention to securing that we have the capital needed to develop our business. We also worked with making sure that we don’t provide any loss making projects or contracts to our clients. In the long run, providing them would have a negative impact, not only for us but also for our clients.
We ended 2014 with control over our project and service business. We also managed to get our capital on a healthy level. This will help us now, when we develop our business mix, to consist of a good distribution of technical installations and technical maintenance business, scale projects and managed services business. We now have more flexibility in our contracts with our clients and our suppliers.
Strategic intent: Providing life cycle solutions
Let's think about the strategic intent of Caverion. We have phrased that we develop and take care of life cycle solutions for buildings and industries. We develop buildings in their construction phase and maintain them. In some instances we also work with their renovation and refreshment.
The last part of the life cycle of buildings and industries relates to what we call managed services. In these services we take over the operation and maintenance of all the technologies in the building, and operate them in a most efficient way.
This whole range of services described above is what we call life cycle solutions.
We also talk about responsible business. So what is responsible for us?
I claim that our entire business idea and our vision relates to responsible business. But the responsibility for us extends even further than that. We talk about responsible business in relation to our employees and in terms of our clients. We help our clients to create a better work place: we guarantee energy reduction, work with improving indoor climate, and thereby create a better working environment. We create optimum technical solutions for different types of facilities, ranging from daycare centres and schools to advanced process industries.
We also consider our own employees with the aim of making sure that they can feel truly safe at the work place.
Megatrends provide opportunities in the future
If we look into the future, there are clear trends supporting a company like Caverion. One trend relates to technology and its development in modern buildings. If we wish to achieve the targets of upcoming legislation and the companies’ demand for increased energy efficiency, we must integrate these technologies in a proper way. This is the capability we as a company have.
Furthermore, we are living in the internet era, meaning that all the technologies in buildings are connected. And there is a lot of data you can pull out. This means we can further improve the efficiency of the energy consumption, but also create a better environment for the people using the facilities we are working with.
This all may sound a bit complex, but it plays very well together with how we develop our business. The trends towards the increasing complexity of technologies, tightening legislation when it comes to energy consumption, and also using the possibilities we have now for being connected to different technologies in various buildings. These, for certain, will lead to an increasing need of capabilities and knowledge Caverion has as a company.
We have more than 17,000 people present all over the Northern Europe, Central Europe and Eastern Europe being prepared to help our clients to be successful, as they move to the future.