SRV’s revised strategy aims at one billion euros in annual revenue within five years

SRV GROUP PLC                               STOCK EXCHANGE RELEASE                         16 FEBRUARY 2012, AT 08.25

Through its new strategy, SRV is seeking faster growth than the industry overall during the period 2012–2016, with the goal of achieving more than one billion euros in annual revenue. SRV’s innovative project development will lay the foundation for revenue growth. By the end of the strategy period, 20 per cent of sales revenue is expected to come from international business, particularly in Russia.

The aim is to increase return on equity to 15 per cent through improved profitability and accelerated recycling of capital. The equity ratio will be maintained above 30 per cent. SRV’s policy is to distribute 30 per cent of annual profit as dividends.

The basic assumptions behind the financial targets are GDP growth at 2.5–3.5 per cent, moderate interest rates and an unemployment rate in Finland below 10 per cent. The unemployment rate and the interest rate level influence housing sales, while economic development and the availability of finance affect business premises projects.

SRV aims to improve profitability by focusing more on its own development and developer-contracting projects, which generate greater added value through the company’s business expertise and therefore higher profitability. The company will seek to add to its order book projects of sufficient size in growth centres in Finland and Russia.

Preparation for business cyclical fluctuations will be made by actively shifting operational focus between business sectors and market areas. The SRV Approach combines flexible scaling of operations and project capital, enabling the company to react more quickly than competitors.

SRV’s strategy update includes a number of qualitative and business practice goals. Competitiveness will be safeguarded by ensuring the development of the transparent SRV Approach as well as customer-oriented and innovative operating practices. The key competitive factor of the SRV Approach, which is based on project development and a project management model, is expertise acquired via targeted recruitment and personnel development. SRV personnel, as an entrepreneurial community and a major shareholder group in the company, manage a diverse partner network in accordance with the SRV Approach.

SRV’s corporate image is based on an open-minded operating model, which distinguishes the company from its competitors. SRV’s mission is to improve quality of life through sustainable solutions for the built environment. Its vision is to be the partner of choice in construction projects and, as a customer-oriented service company, to create added value for its customers. These combine to form the brand promise: SRV – Constructing for Life.

Operations are based on commonly shared values: responsibility, open cooperation, bold in development and enthusiasm for doing. In addition to the strategy, the actions of personnel and partners are also guided by SRV’s ethical guidelines.

By clarifying the brand and strengthening the corporate image, SRV will support the implementation of the strategy and seek commercial added value through growth of the company’s brand-, employer-, partner- and shareholder value.

SRV Group Plc
Taneli Hassinen
Director, Corporate Communications
SRV Group Plc
Tel. +358 40 504 3321
taneli.hassinen@srv.fi