Objectives for 2008– 2010
Commercial
To its customers, the ERIKS group wants to be the innovative, reliable and flexible supplier of choice in line with the defined mission. To its manufacturers, the ERIKS group wants to be a reliable, cooperative partner with sufficient market share and volume, serving the industrial market based on its extensive technical and logistics know-how. Driven by a highly developed group identity, the ERIKS group is striving to achieve the following objectives:- to build up leading market positions in Western and Central Europe and also, in due course, in Northern Europe.
- to take a strong market share (in the top 3) in all core activities in its range in all regions where the group has its own branches.
- to offer an extensive range of high-quality mechanical engineering components.
- to possess and offer a high level of know-how so as to be an innovative supplier.
- to have a balanced spread of sales across the main customer types (purchasing profiles) of ‘Maintenance’ (MRO) and ‘Original Equipment Manufacturers’ (OEM) in order to control its risk profile.
- to expand our current activities in the USA (‘buy-build’ strategy).
- to maintain our activities in South-east Asia organically.
Financial
On the basis of independent, organic development and average growth in industrial production, the financial objectives for the next three years are:
- Average sales growth of 10 to 15 percent (2007: 74.7 percent), of which 5 to 7 percent from organic growth (2007: 11.1 percent) and the remainder via acquisitions. This will result in sales of EUR 1.35 billion to EUR 1.5 billion in 2012.
- An operating result (EBITA) as a percentage of net capital invested, including goodwill, of at least 15 percent (2007: 19.3 percent).
- A net debt/EBITDA ratio of less than 2.5 (2007: 1.0).
- An interest coverage ratio of more than 6.
- An average rise in earnings per share of 5 to 10 percent (2007: 21.9 percent).
- A dividend payout, circumstances permitting, of approximately 50 percent of the result placed at the disposal of the shareholders plus amortisation (2007: 50.2 percent).
Achieving these objectives will foster a lasting relationship with our customers and manufacturers, increase development opportunities for our employees and create added shareholder value.
Organisational
The ERIKS group wants to be a modern, innovative and performance-oriented employer to its employees. In order to give our customers satisfactory service and act as a partner to manufacturers, responsibilities are laid far down in the decentralised organisational structure. This requires our employees to have a technology-driven and customer-oriented attitude, in which mutual cooperation, trust, respect and fellowship are expressly evident.
In its effort to be a modern company in every respect, the ERIKS group will continue to invest in the development of its employees, its product range and its infrastructure (ICT, machinery, storage methods and buildings).