Three clear objectives for all companies
Freedom with responsibility is the basic principle that permeates our organisation. Our companies are free to run and develop their own operations, as long as they deliver on our Group-wide targets. The targets are based on generating growth combined with profitability. Profitable growth is achieved through ongoing development of the operations and the organisation.
Profit growth > 15%
Growth within the Group is measured as profit growth and must amount to at least 15 percent annually, seen over a business cycle. In practice, this means is that our target is to double our earnings every five years.
Profitability = P/WC >45%
The profitability of each subsidiary company should be at least 45 percent, measured as the relation between operating profit (P) and working capital (WC). P/WC places a premium on high profit and a low degree of capital tied up, which, combined with a growth target of 15 percent, provides the opportunity for self-financed profitable growth over the long term.
Sustainable development
To achieve our vision and overarching objectives, we must break the entirety down into manageable parts, so that we can set specific sub-goals for each business – goals that lead towards the vision. The sustainable development of our operations is essential if we are to achieve our demands for Growth and Profitability over time. Sustainable development also entails new opportunities and is positive for both our companies and employees.