EFORE PLC Stock Exchange Release November 21, 2018 at 3.50 pm
Efore updates its strategy and sets medium-term financial targets
Efore Plc’s Board of Directors has confirmed the updated company strategy and financial targets for the period 2019–2021. Following four cornerstones will be important elements in Efore future operations: lifetime value, smart customization, partnerships and cost efficiency.
These four cornerstones create solid ground for building the future growth of Efore
SMART SOLUTIONS FOR ELECTRIC FUTURE
One of the megatrends of today and future is digitalization and everything becoming electric. Electricity can be converted with high efficiency to mechanical movement, heat or chemical energy. In the future, kinetic energy will also be increasingly converted or reversed back to electricity.
Efore mission is to produce efficient and high-quality power supplies and power systems to demanding current and future customer needs. Efore will be part of creating digital and electric customer business and operating environment and contribute in enabling sustainable development.
The following four cornerstones will be important elements in Efore future operations.
- LIFETIME VALUE
- SMART CUSTOMIZATION
- PARTNERSHIPS
- COST EFFICIENCY
These four cornerstones create solid ground for building the future growth of Efore.
LIFETIME VALUE
Efore focuses on delivering demanding power systems and supplies for a wide range of challenging industry applications including telecom, industrial automation, advanced lighting systems, military electronics, transport systems, material handling equipment, and electricity storage systems. Efore’s own product development and innovation focuses on the intelligent, customized, modular and high-performance systems in close partnership with key customers. Efore products focus strongly on lifecycle management and total cost optimisation.
SMART CUSTOMIZATION
Regional market expertise and capability to listen to customers’ industry-specific needs continue to be an important part of Efore operating model. Product development and product management is based on product platform and modularity thinking. Flexible combination of efficient product platform and module development enable that customer and customization needs can be fulfilled cost-efficiently and fast.
PARTNERSHIPS
Efore own technologies and product development capabilities and capacity are strengthened by close co-operation with carefully selected partners. Simple mass market products time to time needed by our key customers are manufactured together with our partners specializing in high volume production. In addition to own capacity and resources, Efore utilizes also complementary regional partners in product and system lifecycle management and maintenance.
COST EFFICIENCY
Efore continues to improve its operations and cost efficiency by renewing the operational IT systems and by improving the raw material availability and cost-efficiency with close partnerships. Efore organizational model supports also simple and fast decision making, which is further improving the cost efficiency. Efore targets to further reduce the group general and administration costs by EUR 0.5 million and the operating costs in Italy, Tunisia and the United States by a total of EUR 1 million.
SUCCESS IN FUTURE BUSINESS REQUIRES GROWTH
Efore target is to achieve strong net sales and profitability growth in both Industrial and Telecom businesses.
Efore also aims to offer further expanded product portfolio and larger solutions to current customers, and make Efore even more significant partner for them.
In addition, we are actively seeking new customers for demanding and harsh environment products and solutions. Flexibility built by product platforms and module approach will be strong contributor in making this happen.
Future growth areas for both Efore own and partner products will be areas such as computer centers, power electronics for solar panel systems and expanding to solutions for railway and other demanding transportation systems.
FINANCIAL TARGETS
Provided that the planned acquisition of Powernet takes place, the company will set its medium-term targets as follows:
- Efore targets for 2019 is to achieve net sales of over EUR 70 million, clearly positive EBITDA (adjusted for non-recurring items) and positive cash flow from business operations.
- The medium-term financial targets are:
- 10% organic growth in net sales annually
- net sales of over EUR 90 million in 2021
- at least 10% EBITDA margin in 2021
- a significant improvement in equity ratio from the first half 2018 level.
EFORE PLC
Jorma Wiitakorpi Vesa Leino
President and CEO CFO
For further information please contact Jorma Wiitakorpi, President and CEO, tel. +358 40 175 8510 and Vesa Leino, CFO, tel. +358 40 759 8956
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
Efore Group
Efore is an international Group which develops and produces demanding power products. Efore's head office is based in Finland and its R&D functions are located in Finland, Sweden, Italy and China. Sales and marketing operations are located in Europe, United States and China. In the financial year ending in December 2017, consolidated net sales totalled EUR 69.9 million and the Group's personnel averaged 432. The parent company's share is quoted on the Nasdaq Helsinki Ltd.
www.efore.com