The new strategy for 2014–2018
We published our new strategy in October 2013. We will focus on insightful customer solutions, especially in infrastructure construction in Northern Europe. We will also seek profitable growth in residential development and construction in Russia. During the previous strategy period, we established the foundation in Scandinavia and Russia for achieving these targets.
Our vision is to offer insightful solutions above the ground and underground. We aim to grow into one of the leading providers of demanding infrastructure solutions in Northern Europe. This will mean an enhanced offering especially for the traffic and energy industry and urban infrastructure projects. In Russia, we will extend the residential development and construction business from St Petersburg to other selected urban growth centres. We will also explore opportunities to increase our infrastructure construction offering in Russia. We will examine strategic options for technical building services.
Our targets for the strategy period 2014–2018
Our financial targets are:
- Return on investment of 18 per cent over the cycle
- Equity ratio of at least 35 per cent
We estimate that our net sales at the end of the strategy period will be slightly higher than in 2013.
We are aiming for a stable distribution of dividends, with at least 40 per cent of the profit for the financial year distributed to shareholders.
We have defined four strategic targets that we must achieve by the end of 2018. These are:
- to be the most competent company in the industry
- to offer the most insightful solutions
- to offer the best customer experience
- to achieve the strongest profitability improvement in the industry
In order to accelerate the achievement of these targets, we will launch the first five strategic programmes (must-win battles) in spring 2014. These phased programmes finish at the end of 2015 and guide all of our operations.
In 2014, we will concentrate especially on strengthening our operational efficiency, as our target is to improve our profitability and equity ratio quickly. Required measures include:
- Ensuring and strengthening housing sales in Finland and Russia
- Continuing efficiency measures in Scandinavia and Russia
- Improving project management in all operations