🧭 Strategic Focus on Service & Digital 2025–2030
The Strategic Business Case for Board Discussion & Approval
🎯 1. Executive Summary
Between 2025 and 2030, the Industrial Gas Industry faces margin compression in traditional supply segments (on-site, pipeline, merchant).
To maintain growth, improve EVA, and secure long-term competitiveness, the company must pivot strategically toward Service & Digital Solutions — the fastest-growing, highest-EVA business area.
Board Decision: Approve a five-year shift allocating 20–25% of new CAPEX toward AI-driven service and digital ecosystems delivering high-margin, asset-light recurring revenues.
💰 2. Financial Rationale: EVA Uplift
| Metric | 2025 | 2030 Target | Δ Change | Source of Gain |
|---|---|---|---|---|
| EVA (Group) | €379m | €520m | +€141m | Service & Digital expansion |
| Service & Digital Share of EVA | 5% | 20% | +15pp | New digital revenues |
| Capital Employed | €5.0bn | €5.2bn | +4% | Controlled CAPEX |
| WACC | 7.7% | 7.0% | -0.7pp | Risk diversification, ESG funding |
| ROCE | 15.3% | 18.0% | +2.7pp | Asset-light innovation |
🧮 Every €100m invested in digital services yields ~€18m EVA vs. €6–8m in traditional assets.
⚙️ 3. Business Model Shift
| From | To | Strategic Value |
|---|---|---|
| Asset-heavy gas plants | AI-enabled platform services | Higher margin, lower capital risk |
| Product sales | Subscription-based O₂/CO₂/Analytics-as-a-Service | Recurring revenue streams |
| Reactive maintenance | Predictive digital services | Efficiency + trust |
| Industrial supply chain | Customer ecosystem integration | Loyalty + data monetization |
🌐 4. Strategic Pillars 2025–2030
| Pillar | Initiative | Expected EVA Impact |
|---|---|---|
| 1. Digital Operations | Deploy AI-driven logistics, predictive maintenance | +€25m/year |
| 2. Customer Solutions | Launch “Gas-as-a-Service” subscription models | +€30m/year |
| 3. Health & Specialty Services | Medical oxygen monitoring, compliance dashboards | +€15m/year |
| 4. Data Platforms | Build cloud-based customer analytics & billing | +€10m/year |
| 5. ESG & Green Financing | Access green bonds for digital projects | +€5m/year |
| → Total Potential EVA Gain: | +€85m/year (+22% total EVA) |
🧩 5. Capability Roadmap
| Year | Key Milestones | Organizational Focus |
|---|---|---|
| 2025–2026 | Launch 3 pilot projects in Digital Services | Build digital core team |
| 2026–2027 | Standardize Service-as-a-Product platform | Integrate data systems |
| 2027–2028 | Scale subscription model across DACH & EU | Customer acquisition engine |
| 2028–2029 | Monetize data insights via analytics services | Ecosystem partnerships |
| 2029–2030 | Institutionalize AI-Driven Operations | EVA Dashboard automation |
🧠 6. Strategic Advantages
- High EVA Return: 2–3× higher EVA per invested € than production assets.
- Scalable Recurring Income: Subscription and service contracts stabilize cash flow.
- Brand Differentiation: Trusted “Digital Oxygen Provider” image.
- Sustainability Alignment: Low-carbon, energy-efficient AI systems attract ESG capital.
- Talent Magnet: Digital focus attracts young engineers and data scientists.
🚧 7. Risks & Mitigations
| Risk | Description | Mitigation |
|---|---|---|
| Execution Risk | Limited digital skills internally | Build hybrid AI–OT teams & partnerships |
| Market Adoption | Clients resist service subscription | Pilot programs with value-based pricing |
| Cybersecurity | Platform vulnerabilities | AI-driven security & ISO certification |
| Capital Dilution | Overinvestment in low-margin tech | Apply EVA hurdle rates per project |
🧩 8. Implementation Governance
- Board Sponsor: CEO / CFO
- Program Office: EVA Steering Committee
- Reporting: Quarterly EVA–ABC Dashboard updates
- KPIs: EVA per € invested, recurring revenue %, service NPS
🏁 9. Decision Request
Board Approval Requested:
- CAPEX Allocation Shift – 25% to Service & Digital 2025–2030
- Creation of Digital Business Unit (DBU) with full P&L
- EVA-based Incentive System for digital leaders
- Pilot Budget 2025: €30m for Service & Digital portfolio
🔮 10. Expected Legacy Impact
By 2030, Service & Digital will transform the company into a high-EVA, asset-light, knowledge-driven industrial ecosystem.
This shift ensures:
- Sustainable cash-flow generation
- Strategic resilience against commodity cycles
- Strong positioning in the Green and AI Economy
Final Message for Board:
“The future value of industrial gases will not come from molecules, but from knowledge, data, and service ecosystems that turn gas flow into value flow.” – Josef David
