Strategy and Values

We place special emphasis on changing our operating model, which means transforming from a product supplier into a customer segment specific solutions provider. In addition, we strive to expedite the commercial launch of new products and services.

The most important objectives guiding our operations are profitability improvement and shareholder value creation. We aim to continuously show a positive net cash flow after capital expenditure and dividends paid, excluding company acquisitions.

We aim to increase both the return on capital employed (ROCE) and the shareholder value in terms of dividends paid out as well as higher share prices.

Growth from New Markets and Solutions

In line with our strategy, we focus on carefully specified customer segments. Our key priorities include strengthening customer relationships and a geographic expansion into emerging markets. We seek a competitive advantage derived from an efficient operating model, complete solutions, competence, a strong brand, and a strong corporate culture.

Our growth strategy is based on seizing opportunities in emerging and growing market areas. In addition, our objective is to grow by providing our customers with new products and solutions more quickly than before. We will also make acquisitions if they support our growth strategy, bring in new competence, expand our product selection, and strengthen our profitability.

Transformation of the Operating Model Well Under Way

The transformation from product supplier into a customer segment specific solutions provider requires an in-depth understanding of customer needs and expectations. Our strategy work has involved acquiring a better grasp of the challenges and opportunities our customer groups are faced with, and of how we can further develop our operations. In 2007, we invested especially strongly in the customer segment based strategy work in order to reinvent our operating models and to deliver even more benefits to our customers.

Our objective is to generate great mutual synergies. We will be able to make more efficient use of the company’s shared resources after the current harmonization of our ERP systems and of the purchase and delivery chains have been completed.