Ahlstrom has redefined its strategy and launched new long-term financial targets extending to the year 2018 following a comprehensive review. Executives say the new strategy shows its commitment to growing and creating stakeholder value by providing the best performing sustainable fiber-based materials.
"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. The company's mission is to provide innovative fiber-based materials with a function in everyday life.
As part of this implementation the company's business structure was simplified at the beginning of this year and wasreorganized 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 and 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. These include—bringing its operating profit margin above 8% by 2018; gearing to be maintained below 100% and the acheivement of a stable divident, increasing over time.
- 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