NKT’s corporate business strategy for 2011-2015 is entitled ‘Powered by NKT’. As an industrial owner, NKT pledges that its business units are operated in accordance with long-term, global thinking and with focus on financial performance
'Powered by NKT' contains individual plans for the company' four business units - energy cables, cleaning equipment, fiber lasers and flexible pipes for the offshore industry - designed to take them to the next level strategically and in terms of performance. It also provides a strategic framework for the Group.
'Powered by NKT' underlines the commitment to active ownership as the way to bring further strength to the business units.
Active ownership is the foundation which has taken our current business units to their present level. NKT's active ownership was also the foundation which enabled other business units before them to successfully continue under other ownership when NKT's 'best owner' role was over.
Going forward, NKT will continuously focus on ways to exercise its active ownership as effectively as possible for the purpose of creating value. 'Powered by NKT' will also focus on exploiting such opportunities as may be created by consolidation and break-up of existing forms of ownership both within the four existing business units and in related segments.
Goals
NKT’s expects for 2015 are to achieve an organic growth in revenue of 7-8%, and to develop the business units to be able to deliver an EBITDA margin of 15%, an earnings per share of 50 DKK and a return on investment of 20% based on acquisitions and organic growth in the four business units.
The previous strategy period
During the previous strategy entitled 'Building Power', 2008-2012, the businesses have been strengthened significantly. Main ingredients were: global presence, improving competitiveness through increased production and sourcing in low-cost countries, and focusing on higher-value products and associated manufacturing facilities. The start of the period coincided with the economic downturn. This meant that the financial targets could not be realized. But the planned initiatives were moved forward, and the businesses have today been taken to a new empowered level, being ready to work with the new corporate strategy 'Powered by NKT'.
NKT is a modern industrial conglomerate with 120 years of history. Over time NKT has demonstrated the ability to develop successful industrial businesses under long-term ownership and - if appropriate - to divest those businesses if alternative ownership could realize the new potential and deliver the value created.
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NKT mission: To create value by exercising long-term and active ownership in segments where NKT is 'best owner.
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