Lindab's group management today unveiled the updated strategy and revised vision at an Investor Day in Stockholm.
President and CEO David Brodetsky comments:
"During the latter part of 2009 we decided to undertake a thorough review of our strategy aimed at refining and further reinforcing our competitiveness. In the past few years, we have strengthened our positions within several areas but conditions have changed since our last major strategy review was completed in 2001. It is therefore important to identify market trends, growth segments as well as our strengths and weaknesses so that we can further focus our operations and drive growth for Lindab."
As a part of the strategy review, Lindab has developed a new vision. Major emphasis has been placed on Lindab's close ties with its European customer base and the aim of being the supplier of choice.
Lindab's new vision is:
To be the preferred partner for building professionals in our core products Europewide.
The updated strategy is directly linked to the vision and focuses on profitable growth with clearer and more detailed action plans for the future direction of the three business areas.
Strategy discussion summary:
President and CEO David Brodetsky's summary: "Lindab has strong fundamentals and has performed well in the past, but we can do better. The brand, product features, geographical exposure and business culture are historical success factors that will also remain important in the future. However new market conditions, including greater demand for environmentally friendly and energy efficient solutions, high growth potential in Eastern Europe and especially in Russia/CIS, require Lindab to focus its operations further."
"Efforts will be concentrated first and foremost on Lindab's most profitable product and market segments and where Lindab's scale, strength and position suggest the strongest growth potential. The product groups from each of the business areas have therefore been carefully analysed based on a variety of profitability and market criteria."
The strategy for Lindab's largest business area, Ventilation, is being presented by the business area manager Anders Thulin, who explains that to drive operational efficiency further, the business area will have a clearer organisational distinction between supply and distribution. The leading product group, fittings for duct systems, will be afforded the highest priority, along with developing distribution efficiency and leadership. Within the Comfort division, various options are being considered in order to grow the business and improve profitability.
The business area manager for Building Components, Peter Andsberg, states that the market efforts will be concentrated on two distinct segments: residential and non-residential construction. Particular efforts will be devoted to the flagship product, roof drainage, as well as the accompanying product group of roof cladding. Growth is primarily expected from the residential segment whereas initiatives for the non-residential segment will be within existing core markets.
Venant Krier, business area manager for Building Systems, declares that the focus will be on large industrial buildings, both in terms of production efficiency and marketing. This will particularly apply in Eastern Europe and Russia, where demand for this type of buildings is considered to be stronger than in other regions in the coming years. Initiatives will include developing direct sales with a particular emphasis on Russia to complement the builder-dealer network.
Common for the business area strategies is that growth will be supplemented by acquisitions to further reinforce competitiveness.
The timetable for the implementation of the updated strategy is 3-5 years.
End
The presentations will be available on Lindab's website www.lindabgroup.com under Investor Relations.
The information here is that which Lindab International AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
Contacts:
LINDAB
David Brodetsky, CEO
Email: david.brodetsky@lindab.com
Mobile: +46 (0)73 274 5418
Nils-Johan Andersson, CFO
Email: nils-johan.andersson@lindab.com
Mobile:+46 (0)70 668 5075
Lindab - A Ventilation and Building Products company:
Lindab develops, manufactures, markets and distributes products and system solutions primarily in steel for simplified construction and improved indoor climate.
The business is carried out within three business areas, Ventilation, Building Components and Building Systems. The products are characterised by their high quality, ease of assembly, energy efficiency, consideration towards the environment, and are delivered with high levels of service. Altogether, this increases customer value.
The Group had net sales of SEK 7,019 m in 2009, was established in 31 countries and had approximately 4,500 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2009, the Nordic market accounted for 42 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 21 percent, Western Europe for 32 percent and other markets for 5 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Large Cap, under the ticker symbol LIAB. The principal shareholders are Ratos, Sjätte AP-fonden and Skandia Liv. For more information visit www.lindabgroup.com