Ahlstrom announces its redefined strategy and new long-term financial targets
The Finnish Materials specialist Ahlstrom announces its redefined strategy and new long-term financial targets extending to the year 2018 following a comprehensive review. We are committed to growing and creating stakeholder value by providing the best performing sustainable fibre-based materials. The company’s vision is to be its customers’ first choice
The needs of its customers are affected by end-user behaviour, which challenges us to constantly develop and improve fibre-based material solutions. Global trends – growing global population and scarcity of resources, increased demand for greener and resource-efficient materials, emerging needs in healthcare, changes in demographics and urbanization – faced by the customers steer our product offering and provide us with a wealth of opportunities.
“To be the first choice of our customers, we need to be even better in anticipating end-user needs,” says Ahlstrom’s President & CEO Marco Levi. “By providing innovative solutions, we help our customers succeed.”
Ahlstrom’s strategy is built on three key success factors: customer focused solutions with tailor-made products, leading technology and manufacturing platforms, global reach and local insights. Our mission is to provide innovative fibre-based materials with a function in everyday life.
As part of the implementation, the company’s business structure was simplified as of the beginning of this year and reorganised into two business areas: Filtration & Performance and Specialties. The aim of this change is to increase market and customer focus. Both segments have business unit specific strategies and operating models. This enables us to provide customer-driven product development and tailored customer service, cost efficiency, better allocation of resources, and specific go-to-market approaches.
“We believe that with our strategy we can achieve our vision,” Levi continues. “However, for us to be the best possible partner for our customers, we need to make a shift in the execution.”
The roadmap for execution outlines the change in strategy. It is focused on commercial excellence, a new lean operating model, organic growth via higher asset turnover and growth via new platforms.
As part of the redefined strategy, the Board of Directors has approved Ahlstrom’s new long-term financial targets over the economic cycle:
• Operating profit margin: Adjusted operating profit margin to be above 8% by 2018
• Gearing: Gearing to be maintained below 100%
• Dividend policy: We aim for a stable dividend, increasing over time, based on the annual net income performance
The adjusted operating profit margin excludes restructuring costs, impairment charges, capital gains or losses, and discontinued operations.