Vacon Plc, Stock Exchange Release, 28 November 2013 at 7.45 (EET)
Vacon's Board of Directors has approved the company's new long-term financial
targets and redefined strategy for the years 2014-2020.
Vacon's financial targets for the years 2014-2020 are as follows:
Growth: The target is to achieve an average annual revenue growth of over 10%.
The growth target is based on growing the business organically in a market
environment where the AC drives market grows clearly faster than the average
Gross Domestic Product (GDP). Selective acquisitions can be used to further
accelerate the growth.
Profitability: The long-term profitability target is to achieve a sustainable
EBIT margin level of 14%. Vacon focuses on growth and on measures that improve
the company's efficiency in the long term and thus deliver a higher absolute
EBIT and shareholder value.
Vacon does not consider the long term financial targets as market guidance for
any given year during the period 2014-2020. Market guidance for 2014 will be
disclosed in Vacon's Q4/2013 interim report on 6 February 2014.
Strategic focus and competitive edge
Vacon's strategy is based on a 100% focus on AC drives. The AC drives market
provides a good growth opportunity for the company also in the future.
Vacon will further build its broad product, application and service portfolio.
It will introduce medium-voltage AC drives and system drives. The company will
also expand its service business.
As a focused company, Vacon will further expand its portfolio of customer
industries. This provides stability over the cycle. Vacon will also accelerate
growth by expanding its operations to new geographical areas and by focusing on
high market growth countries.
One of the cornerstones of Vacon's strategy is multi-channel sales. Multiple
channels are needed to bring the wide product offering to all countries and
selected customer industries. Channel selection is optimized based on individual
In addition to systematically improving operational efficiency, the main drivers
for profitability are the best cost country sourcing, design to cost, regional
production and service business growth, as well as differentiation with
application software and cloud based services.
Vacon's differentiation and competitive advantage are based on four elements:
Product leadership, Profound application know-how, Extensive services and Unique
Vacon's new vision - The Drives Family
Vacon has defined a new vision for its operations. The vision was created
together with our personnel in a process which started in the spring of 2013.
"We involved our personnel in the project because we wanted to create a vision
which is shared by everyone and which inspires us in the years to come. I am
personally proud of the new vision and also of the process by which it has been
created," says Vesa Laisi, Vacon's President and CEO.
Vacon's vision is to create The Drives Family:
"We see that true value is created together. That is why we will create The
Drives Family where the best people work together to develop the best products,
applications and services for our customers.
Vacon will be a company that brings together personnel, customers, partners,
suppliers, shareholders, scholars and students - all the people who are Driven
We aim to grow faster than the market and with solid profitability. This allows
us to invest in the future growth and to share the value within The Drives
Vacon 20/20 Capital Markets Day
Vacon is hosting a Capital Markets Day in Helsinki today, 28 November 2013. In
the event Vacon's management will present the company's vision, new long-term
financial targets and redefined strategy in detail. Further information about
the Capital Markets Day and Vacon's strategy is available at
* Vesa Laisi, President and CEO, Vacon Plc, phone +358 (0)40 8371 510,
* Sebastian Linko, Director, Corporate Communications and Investor Relations,
Vacon Plc, phone +358 (0)40 8371 634, sebastian.linko(at)vacon.com
Vacon in brief:
Vacon is driven by a passion to develop, manufacture and sell the best AC drives
and inverters in the world - and provide customers with efficient product
lifecycle services. Vacon offers optimum process control and energy efficiency
for various industrial sectors such as building automation, marine and offshore,
mining and metals, water and wastewater, and renewable energy. Vacon has
production and R&D facilities in Europe, Asia and North America, and sales
offices in 29 countries. Further, Vacon has sales representatives and service
partners in nearly 90 countries. In 2012, Vacon's revenues amounted to EUR
388.4 million, and the company employed globally approximately 1,500 people. The
shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock
exchange (NASDAQ OMX Helsinki).
Driven by Drives, www.vacon.com
NASDAQ OMX Helsinki
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