As an investment > Business model
Viafin Service has an agile and entrepreneurial business model that has enabled it to expand its service offering while maintaining profitability. We believe that a genuine partnership with our customers comes from local service.
Our business can be divided into two areas, which are:
The industrial service and maintenance business covers approximately 75 percent of our business, and projects (of approximately 1–5 million euros) represent the remaining 25 percent of net sales. The most important part of our business is the service and maintenance offering, which is complemented by our project business. Our growth ambitions are targeted especially to our service and maintenance operations.
We serve our customers when they increase their capacity, make investments in production, renew machinery and build new facilities. Such actions are often implemented during a stronger economic cycle. On the other hand, we are also there to serve our customers during a weaker economic cycle. Industrial maintenance needs often increase during downturns, when our customers need to extend the life cycle of current machines, equipment and plants and focus on optimizing efficiency in production. Thus, the role of a service and maintenance partner is important and, in many situations, a critical function for our customers' operations regardless of the economic cycle.
Although the geographical distribution of our net sales in Finland is wide, we are to some extent dependent on the business and prospects of individual industries and customers. Our business is mainly focused on the pulp and board industry, the energy sector, the gas industry and the chemical industry. As we grow, we have been constantly broadening our exposure to new customer segments and industries such as the food industry. The acquisition of Viafin GAS Oy is also an example of how we have expanded our business through inorganic growth to the gas industry. Although the share of total net sales to a customer can be from time to time be reasonably large, the actual sales from that customer are typically divided into various factories and outlets, which generally decide autonomously their maintenance orders.
Our business is asset light keeping our investment needs reasonably low. The industry is characterized by good cash flow and negative net working capital. The cash flow profile supports the ability to pay dividends.