Lemminkäinen's strategy for the period 2010 - 2013
The main financial targets are profitable growth and strengthening the Group’s solvency. Focus areas are renovation construction, technical building services, Russian residential construction and Nordic infrastructure construction. The Group structure will be simplified and the brand harmonised with the aim of creating one Lemminkäinen. The objective is for at least 40% of the result for the financial year to be distributed as dividends.
Financial targets 10% growth in net sales, 18% return on investment and 35% equity ratio
Lemminkäinen’s strategy’s key financial targets are profitable growth and strengthening the Group’s solvency. The company’s profitability target is a return on investment in excess of 18% and its solvency target is an equity ratio in excess of 35%. Lemminkäinen is aiming for an average 10% growth in net sales for the strategy period 2010 to 2013.
Dividend distribution target 40%
According to the new dividend distribution policy, the company aims for a stable distribution of dividends in which at least 40% of the result for the financial year belonging to the parent company’s owners is distributed as dividends.
The amount of dividends may, however, be affected by investment needs targeted at company growth or other financing needs.
President and CEO Timo Kohtamäki:
“In this challenging market situation we have identified growth areas in which we have already proven our expertise and know-how.
“The Russian residential market is continuing its growth in the near future. We have plenty of expertise in Russia and we wish to make use of this growth in our business operations. Infrastructure construction, on the other hand, is a steady industry compensating for the effects of business cycles for the entire Group. This is also a strength in the present situation as the Nordic Countries are directing their recovery measures into infrastructure construction. In addition, the Nordic Countries are investing significantly in infrastructure development in the near future.
“In Finland we will see the volume of renovation construction exceeding the volume of new construction within the next few years. Also various life cycle solutions are on the increase. As an experienced renovation builder, it is natural for us to combine the Group’s resources and look for new service models for this business. The growth of building services and related maintenance business is made possible by intelligent solutions, increasing incorporation of technology and tightening of regulations, e.g. in terms of energy efficiency.
“Through the strategy update we are aiming for clear change leading to more consistent operating models and a simpler organisational structure. Harmonising operations aims at internal efficiency and making doing business with Lemminkäinen easier than ever before. As evidence of the change are the new brand ‘One Lemminkäinen’ and visual look which communicate renewal and moving forward,” states Timo Kohtamäki, President and CEO for Lemminkäinen.
Take a look at Lemminkäinen´s new look at company´s website: www.lemminkainen.com/media/image_gallery