Coor Service Management (COOR) investor relations material

Market overview and trends

• Nordic facility management market is valued at SEK 550 billion, with SEK 350 billion addressable by external suppliers and two-thirds outsourced, growing at 3–4% annually and expected to remain robust through 2030, driven by specialization, digitalization, and integrated contracts.

• The market is fragmented in single services like cleaning and property, offering significant M&A opportunities, while IFM is more consolidated.

• Key trends include migration from in-house to outsourced and integrated contracts, rising regulatory requirements, technology innovation, and a shift toward outcome-based partnerships favoring large, at-scale providers.

• Growth is supported by increasing serviced office and industrial space, higher service levels, and efficiency gains through automation and data analytics.

• Each Nordic country shows similar dynamics but with varying IFM maturity, outsourcing, and fragmentation, especially in remote areas.

Strategic direction and business development

• Focus on leveraging IFM leadership to expand into single services, particularly cleaning and property, using advanced systems, compliance capabilities, and targeted sales.

• Diversification of the customer base is a priority, with top 10 customers now accounting for less than 40% of revenue and expansion into public sector and non-office segments.

• Selective M&A remains a key lever for growth, especially in fragmented markets and outside Sweden, supported by a strong track record and renewed balance sheet capacity.

• Operational model is evolving to be scalable, process-driven, and tech-enabled, with emphasis on workforce management, procurement, automation, and AI adoption.

• New management appointments in finance, HR, and property support execution of the growth strategy and cultural transformation, empowering employees to drive sales and retention.

Segment highlights: IFM, Cleaning, and Property

• IFM: Leading Nordic provider with ~30% market share and SEK 7.2 billion revenue, focusing on strategic partnerships, tailored contracts, and retention through structured programs.

• Cleaning: SEK 85 billion Nordic market with ~3% annual growth, 6% share, 8,000 employees and customers, strong organic and M&A-driven growth, with emphasis on eco-labeling, automation, digitalization, and local sales culture.

• Property: SEK 150 billion market with ~3% annual growth, 2% share, SEK 3.5 billion in sales, targeting density-driven growth, technical expertise, and local sales expansion, especially in Sweden and adjacent regions.