Annual report 2008 - Munters

4
Strategic focus
Focus on segments with favorable growth potential
StrateGY
Goals
Vision
Munters’ vision is to be a globally leading supplier of energyefficient
solutions for air treatment and damage restoration
based on its expertise in technologies for humidity and
climate control.
World-leading position
Munters’ world-leading position in energy-efficient regulation
of indoor climates was achieved through specialist
competence in thermodynamics, application expertise and
customer-driven product development. Munters focuses on
market segments with favorable growth potential in which
the Group can create strong global positions and favorable
profitability. By successively broadening the product and
service portfolio and through forward integration, Munters
takes a larger part of the value chain within selected niches,
while at the same time increasing the market potential. The
annual value of the potential market is estimated by Munters
to amount to nearly SEK 70 billion, of which Munters has
a market share of about 10 percent.
Strategic focus
An important part of strategy work is to further strengthen the
company’s position to leverage the following global trends:
• Increased demand for energy-efficient and environmentally
friendly solutions
• Increased demands on indoor climate
• Consolidations and quality requirements in food production
and distribution
• Consolidation within the insurance industry
• Economic expansion in Asia.
Financial targets
Shareholder value must be created through high growth combined
with favorable margins and a high capital turnover rate.
The Board of Directors has established the following financial
targets:
• Sales growth of 10 percent per year over a period of several
years
• EBIT margin of 10 percent
• Capital turnover rate a multiple of 3.
Each division and business unit has individual target for these
key figures that are adapted to their particular prerequisites.
Operative goals
• Global leadership in selected segments
• Leading in energy efficiency
• High quality and productivity combined with efficient
resource utilization through continuous improvement work
• Customer-focused performance culture with a high degree
of personal satisfaction and good career opportunities
• High efficiency and short lead times via integrated IT systems.
Sales growth
%
20
15
10
5
0
–5
–10
2003 2004 2005 2006 2007 2008
Target Sales growth Organic growth with current structure
Munters’ strategic initiatives to achieve its overall goals can
be summarized in the following illustration:
EBIT margin
%
12
Focus on gross margin
10
8
6
Leveraging global
market trends
Complimentary acquisitions
Profitable
growth
More efficient product development – global platforms
Strengthened presence
in Asia
Expansion from selected
niches
4
2
0
2003 2004 2005
Target EBIT margin
Capital turnover rate
multiple
3.2
3.0
2.8
2.6
2.4
2.2
2006
2007
2008
25
20
15
10
5
0
-5
-10
2.0
2003
Target
2004 2005
Capital turnover rate
2006
2007
2008
14
12
10
8
6
4