Convert Industrial Gas → Business-as-a-Service by Q4-2025
From tonnage & trips to outcomes on subscription: index energy, meter usage, automate delivery, and lock predictable cash flow.
Power Statement
Package outcomes, not loads: launch IG-BaaS with base-capacity subscription + metered usage + SLA + equipment lease — reach ≥60% recurring mix and 62–66% GM by Q4-2025.
North Star & Targets (by Q4-2025)
| KPI | Definition | Target Q4-2025 | Why it Matters |
|---|---|---|---|
| Recurring Revenue Mix | % of revenue on subscription/usage | ≥60% | Predictable cash flow, valuation uplift |
| Gross Margin | (Rev−Delivery COGS)/Rev | 62–66% | Scale via standard scope & automation |
| NRR | Expansion − churn | ≥108% | Grow existing base |
| DSO / DIO | Days sales / inventory | DSO −8d • DIO −5d | Release working capital |
| ROCE | EBIT ÷ Capital Employed | +300–500 bps | Asset-light & WC reduction |
IG-BaaS Offer Architecture
| Tier | Value Package | SLA | Commercials (Illustrative) |
|---|---|---|---|
| Supply-as-a-Service: Bulk/Cylinder | Base subscription (cap. band), telemetry, monthly health report | Resp <24h • Fill <48h | €1–3k/mo + €/Nm³ usage + cyl/asset lease |
| Plant-as-a-Service: PSA/LOX Module | On-site module lease, ops monitoring, preventative maintenance | Uptime ≥99.5% • 4h response | €8–15k/mo + usage + power indexation |
| Outcome+ | Guaranteed QoS, green-mix certificates, energy optimization | Penalties/credits • exec dashboard | Tier fee + usage + gain-share (10–20% verified savings) |
Monetization stack = Subscription (base) + Usage (€/Nm³) + Equipment Lease + Premium SLA + Gain-Share.
90-Day Conversion Playbook (Aug–Dec 2025)
Aug–Sep • Build & Pilot
- Standardize 3 IG-BaaS packages (scope, limits, KPIs, exclusions).
- Stand up client portal (orders, tickets, telemetry, invoices, reports).
- Pilot 5 lighthouse accounts (mix: healthcare, food, fab, water).
Oct • Launch & Migrate
- Publish pricing + SLAs; migrate 25–35% eligible customers.
- Insert energy indexation & floor ROCE clauses on renewals.
- Deploy VMI + telemetry to 60% bulk tanks; route optimizer live.
Nov–Dec • Scale & Lock-In
- Lease modular PSAs to 2–3 sites (pre-signed SPAs, <18-mo payback).
- Introduce green-mix SKUs (GoOs) + premium QoS tiers.
- QBR cadence; value reports → expansions & gain-share addenda.
KPI Trajectory (Illustrative)
| Period | Recurring Mix | GM | NRR | DSO | DIO | ROCE Δ |
|---|---|---|---|---|---|---|
| Baseline (Aug-2025) | 35–40% | 56–58% | 102% | 55d | 28d | — |
| Target (Dec-2025) | ≥60% | 62–66% | ≥108% | ≤47d | ≤23d | +300–500 bps |
Drive mix via on-site/lease conversions, VMI/telemetry, and value-based SLAs; cut delivery variance and kilometers with e-routing & drop density.
ROCE Bridge (Illustrative, €m)
| Baseline | Δ EBIT | Δ Capital Employed | Result | |
|---|---|---|---|---|
| EBIT | €70 | +€20 (pricing +12, cost −6, mix +2) | — | €90 |
| Capital Employed | €850 | — | −€80 (WC −50, asset recycle −30) | €770 |
| ROCE | 8.2% | Margin ↑ + Capital ↓ | 11.7% | |
Guardrails: capex < 0.7× D&A; renewal pricing: energy index + ROCE floor; DSO −8d; DIO −5d; asset sale-leaseback for non-core depots.
Risks & Controls
- Scope creep → Tier SLAs + change-order menu + explicit exclusions.
- Energy volatility → Index clauses, PPAs, demand-response credits.
- Delivery variance → Telemetry, VMI, e-routing, depot consolidation.
- Churn risk → QBRs, executive sponsor map, value reports, QoS credits.
- Cash strain → Quarterly prepay discount, auto-billing, dunning policy.
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