Strategic framework

Local focus will generate firmer control of the business.

Strategic review
In 2021, we conducted a strategic review of our operations and business environment. This initiative clarified our strengths and weaknesses, and provided us with valuable insights for achieving greater profitability. Based on these insights, we adopted an updated strategy and revised targets at the end of the year.

Purpose and targets
Beginning in 2022, our operation is governed based on our ambition of creating happy neighbourhoods for the many and achieving our targets. In 2024 Bonava revised its strategic targets. The target that the operating margin is to amount to at least 10 per cent on an annual basis from 2026 stands firm, while the target that the net debt/equity ratio is not to exceed 1.0x. will be removed. Instead, a new target has been introduced stating that return on equity is to be at least 15 per cent over time. The four other strategic non-financial targets remain unchanged. Our strategy is the roadmap that will guide us towards our targets. Read more

Core themes
The challenging market requires measures to strengthen the cash flow and balance sheet, an efficient and flexible organisation and an adjustment of our offering. This will be done as part of our strategy and will strengthen us ahead of the turnaround in the housing market that is eventually expected to occur. The three strategic core themes support each other, and together they will lead us toward profitability, long term success and happy neighbourhoods for the many: Optimised building rights portfolio and market position, increased efficiency and flexibility and commercial excellence.

Our Foundation
We will strengthen our business and our profitability and ensure that we have the financial capacity to benefit from the business opportunities that the market offers. Our three core themes, our values and our sustainable foundation will work together so that we can get the best out of our efforts. Read more about our sustainable foundation: Environmental respect will be embedded in everything we do, we will have a people-centric culture, and a model of governance for high performance

Different plans and measures
Our markets differ as regards the degree of consolidation and competition, as well as governmental regulations and plans for residential development. Moreover, our business units differ in the degree of maturity and standardisation. This means that conditions differ, and our business units need different strategic plans and measures in order for us to achieve our objectives. That is why we have divided our strategic initiatives for profitable growth by 2026 into three phases: Stabilise business, Ensure profitability and Grow business. Read more