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Strategy

Adapteo’s management has prepared the company’s strategy for the period spanning until 2023. The management has identified a number of strategic avenues to continue strengthening Adapteo’s Northern European leadership position as well as to further improve the strong business model and efficiency to create value for shareholders.

Cramo acquired Nordic Modular Group Holding AB in 2018. In the near-term, Adapteo will place high emphasis on the integration of Nordic Modular Group Holding AB, which will be an important enabler for delivering the strategy.

Strategy built on three key pillars

Adapteo’s key strategic pillars are break-out growth, commercial excellence and operational efficiency.

Break-out growth

Rental market share and geographic expansion

Adapteo’s management sees a large opportunity in the growing addressable rental market. As the leading Northern European player* Adapteo is positioned well to capture the market growth and further strengthen its market position especially in Germany, where the company has a strong growth focus. The company also sees potential in expanding to other new geographies within Central Europe. Adapteo sees acquisitions as a tool to accelerate strategy execution.

Expansion in the sales and long-term leasing market

Adapteo has a limited presence in the sales and long-term leasing market outside Sweden. Cramo acquired Nordic Modular Group Holding AB in 2018 which was an important step in expanding Adapteo's operations in the sales and long-term leasing market. The company's management sees leveraging the existing operating model and combining it with the long-term leasing, sales capabilities and the resources of Nordic Modular Group Holding AB as a highly attractive opportunity to expand and strengthen its position in other Northern European countries.

Customer segment expansion

Adapteo currently has a strong position in serving particularly the school and day care customer segments. Adapteo sees growth potential in less penetrated customer segments, including health and social care and offices. Adapteo’s management considers the continuous development of the offering and improvement of sales and marketing capabilities as key initiatives in capturing the opportunity.

Offering expansion

Adapteo has a well-invested operating platform and a large fleet through which it can offer a broad range of solutions. Adapteo is in a good position to investigate the possibilities for extending the current offering as well as to determining what modules it should offer in the future.

Commercial excellence

Adapteo operates a large and highly valuable fleet of modular space solutions. Following the acquisition of Nordic Modular Group Holding AB, the company seeks to harmonise its fleet according to customer preferences, develop an aligned pricing strategy, and improve its operating model. The company aims to offer the optimal solution to the customer, align its sales process, develop a unified marketing and brand strategy as well as capture the opportunities in digital tools.

Operational efficiency

Adapteo continuously aims to improve the efficiency and quality of its operations in order to support its growth, profitability and returns. The acquisition of Nordic Modular Group Holding AB in 2018 presents potential for unrealised cost synergies, which Adapteo’s management expects to amount to EUR 3 to 4 million annually. The company expects the full synergistic run-rate to be reached by the end of 2020.

Adapteo has developed a strategy to execute future operational excellence initiatives and expects that these future initiatives will yield additional meaningful cost savings. Key upcoming initiatives include, among others, taking advantage of sourcing scale benefits, factory and hub efficiency optimisation, streamlining the organisation and creating a common culture, optimising the utilisation rate of the fleet, as well as module lifecycle management.

Long-term value creation opportunities

In addition to the key strategic pillars described above, Adapteo has identified additional value creation avenues that span beyond the current strategy period of up until 2023. These include:

  • Complementing the offering with value-added products and services
  • Sale of modular space solutions in the residential customer segment

*Management consultant analyses. Measured by revenue. Revenues used in the assessment of Adapteo’s market share in the Rental Market are estimates based on information from public sources on the combined 2017 revenue of the operational companies of Cramo’s Modular Space business division operating in Sweden, Finland, Norway, Denmark and Germany as well as the Swedish, Finnish, Danish, and Norwegian companies of Temporent.

Read about Adapteo's financial targets

financial targets

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