Vacon Plc, Stock Exchange Release, 28 November 2013 at 7.45 (EET)
Vacon`s Board of Directors has approved the company`s new long-term financial targets and redefined strategy for the years 2014-2020.
Vacon`s financial targets for the years 2014-2020 are as follows:
Growth: The target is to achieve an average annual revenue growth of over 10%. The growth target is based on growing the business organically in a market environment where the AC drives market grows clearly faster than the average Gross Domestic Product (GDP). Selective acquisitions can be used to further accelerate the growth.
Profitability: The long-term profitability target is to achieve a sustainable EBIT margin level of 14%. Vacon focuses on growth and on measures that improve the company`s efficiency in the long term and thus deliver a higher absolute EBIT and shareholder value.
Vacon does not consider the long term financial targets as market guidance for any given year during the period 2014-2020. Market guidance for 2014 will be disclosed in Vacon`s Q4/2013 interim report on 6 February 2014.
Strategic focus and competitive edge
Vacon`s strategy is based on a 100% focus on AC drives. The AC drives market provides a good growth opportunity for the company also in the future.
Vacon will further build its broad product, application and service portfolio. It will introduce medium-voltage AC drives and system drives. The company will also expand its service business.
As a focused company, Vacon will further expand its portfolio of customer industries. This provides stability over the cycle. Vacon will also accelerate growth by expanding its operations to new geographical areas and by focusing on high market growth countries.
One of the cornerstones of Vacon`s strategy is multi-channel sales. Multiple channels are needed to bring the wide product offering to all countries and selected customer industries. Channel selection is optimized based on individual country characteristics.
In addition to systematically improving operational efficiency, the main drivers for profitability are the best cost country sourcing, design to cost, regional production and service business growth, as well as differentiation with application software and cloud based services.
Vacon`s differentiation and competitive advantage are based on four elements: Product leadership, Profound application know-how, Extensive services and Unique organizational culture.
Vacon`s new vision - The Drives Family
Vacon has defined a new vision for its operations. The vision was created together with our personnel in a process which started in the spring of 2013.
"We involved our personnel in the project because we wanted to create a vision which is shared by everyone and which inspires us in the years to come. I am personally proud of the new vision and also of the process by which it has been created," says Vesa Laisi, Vacon`s President and CEO.
Vacon`s vision is to create The Drives Family:
"We see that true value is created together. That is why we will create The Drives Family where the best people work together to develop the best products, applications and services for our customers.
Vacon will be a company that brings together personnel, customers, partners, suppliers, shareholders, scholars and students - all the people who are Driven by Drives.
We aim to grow faster than the market and with solid profitability. This allows us to invest in the future growth and to share the value within The Drives Family."
Vacon 20/20 Capital Markets Day
Vacon is hosting a Capital Markets Day in Helsinki today, 28 November 2013. In the event Vacon`s management will present the company`s vision, new long-term financial targets and redefined strategy in detail. Further information about the Capital Markets Day and Vacon`s strategy is available at www.vacon.com/investors.
- Vesa Laisi, President and CEO, Vacon Plc, phone +358 (0)40 8371 510, vesa.laisi(at)vacon.com
- Sebastian Linko, Director, Corporate Communications and Investor Relations, Vacon Plc, phone +358 (0)40 8371 634, sebastian.linko(at)vacon.com
Vacon in brief:
Vacon is driven by a passion to develop, manufacture and sell the best AC drives and inverters in the world - and provide customers with efficient product lifecycle services. Vacon offers optimum process control and energy efficiency for various industrial sectors such as building automation, marine and offshore, mining and metals, water and wastewater, and renewable energy. Vacon has production and R&D facilities in Europe, Asia and North America, and sales offices in 29 countries. Further, Vacon has sales representatives and service partners in nearly 90 countries. In 2012, Vacon`s revenues amounted to EUR 388.4 million, and the company employed globally approximately 1,500 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).
Driven by Drives, www.vacon.com
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Source: Vacon Oyj via GlobeNewswire