Information for the investor about SRV, our outlook and financial targets

SRV is a Finnish developer and innovator in the construction industry that builds business premises, housing and infrastructure. We are building a more sustainable and responsible urban environment. In our operations, we take the best interests of both the environment and people into consideration and account for economic wellbeing. We respond to the ongoing trends in our business environment, such as accelerating climate change, urban growth and high-density development, and faster digitalisation. SRV’s business uses a partnership model — construction work is procured from SRV’s partners and the variable costs involved truly are variable.

Why invest in SRV?

Sustainably profitable

Our aim is to build SRV into a sustainably profitable company. We steer our profitability by tapping into market opportunities and engaging in prudent risk management and selecting our projects carefully. We also proactively manage our risks by diversifying our portfolio geographically, by intended use and contract type, and by limiting the amount of capital tied up in projects.

Stable financial position and low risk levels

In 2019-2023, SRV successfully revitalised its balance sheet, developed leadership and boosted operational efficiency, and improved project risk management. Thanks to our healthy balance sheet, favourable risk position and low housing exposure, we will be able to start rapidly pursuing profitable growth when investor demand recovers.

Order backlog and controllability in good shape

We have a strong order backlog that is heavily focused on collaborative business premises contracting, in which the customer and SRV share the financial risk. The controllability of our projects is at a good level, which is reflected in occupational safety, customer satisfaction and achievement of budgeted margins.

Profitable growth through a strong portfolio of development and developer-contracting projects

Strategically, we pursue profitable growth by further bolstering our leading position in collaborative contracting, and at the same time we seek controlled growth in project types with a higher profitability, that is, development of business premises as well as development and developer-contracted housing construction projects. Our strong expertise in project development, the project candidates this produces, our extensive project development portfolio and our knowhow in transactions enable future growth.

Lifecycle wisdom and high-quality customer work are our competitive advantages

Lifecycle wisdom, i.e. construction that is sustainable from an environmental, human and financial perspective, is at the heart of SRV’s strategy. We have unique expertise in constructing lifecycle-wise buildings and have implemented many public-sector projects under the lifecycle model. In these lifecycle projects, we are responsible for the design and implementation of the property, and its maintenance and servicing for 20 years after completion. Our robust expertise in technical building services and energy lay the foundation for both lifecycle-wise construction and high-quality customer work.

Strategic objectives

SRV’s strategic objectives are increasing shareholder value, excellent customer and employee experience and mitigating climate change. SRV aims to continuously optimise its portfolio for market conditions and risk management in order to reach its long-term financial objectives. SRV focuses on three main aspects in portfolio management and the goal is to

strengthen SRV’s leading position in cooperative and other contracting
increase the share of development and developer-contracted projects to 30–40% of revenue
grow residential projects to 30–40% of revenue.

The gradual strengthening of SRV’s balance sheet enhances the company’s ability to finance land acquisitions for development and developer-contracted production and, in particular, the capital tied to developer-contracted production as its volume grows.