OUTOTEC OYJ STOCK EXCHANGE RELEASE NOVEMBER 27, 2014 at 3.30 PM
OUTOTEC'S NEW LONG-TERM FINANCIAL TARGETS AND EXISTING 2020 SUSTAINABILITY TARGETS
Outotec's Board of Directors has today revised the company's long-term financial targets to better reflect the current market environment.
New long-term financial targets
- Sales growing faster than the market
- Based on several market institutes' estimates, metals demand is expected to grow on average 3-6% per annum in line with global GDP growth.
- Annual average service sales growth 10-20%
- EBITA margin (excluding onetime costs) 10% in 3-5 years time
- Dividends on average 40% of annual net income
- Potential mergers and acquisitions may impact the payout of dividends.
- Gearing at maximum 50%
Previous long-term financial targets set in 2010 and 2012 and Outotec's performance
- Annual average sales growth of 10-20%
- In 2010-2013, Outotec's average growth rate was 25.4%.
- Service sales EUR 500 million by the end of 2015 (target set in 2010)
- Target was achieved in 2013.
- Service sales EUR 1 billion by the end of 2017 (target set in 2012)
- In 2010-2013, Outotec's average service sales growth rate was 21.4%.
- Operating profit margin from business operations on average 10%
- In 2011-2013, the average of 8.9% was reached.
- Dividend policy at least 40% of annual net income
- For years 2011-2013, Outotec has paid 43.9% dividends on average.
- Maintaining strong balance sheet
- In 2011-2013, Outotec has been net cash positive.
Reiterating 2020 sustainability targets set in 2012 and 2013
- Share of Environmental Goods and Services in Outotec's order intake permanently over 90% (87% in 2013)
- 50% reduction in fresh water consumption per 1 tonne of ore in non-ferrous metals concentrators delivered by Outotec
- Customers generate 20% less CO2 emissions through Outotec's metals-related technologies
- 5% improvement in Outotec's employee engagement and performance enablement indices
For further information please contact:
Mikko Puolakka, CFO
Tel. +358 20 529 211
NASDAQ OMX Helsinki