Opus Group Annual 2011 Report ENG

8
OPUS 2011
MISSION, GOALS
AND STRATEGy
Opus’ mission is to develop, produce and sell products and services within
environmental and safety testing of vehicles for the global market.
Financial goals
Beginning 2012, Opus adopted new financial targets. Over
a business cycle, the goals are:
·Annual revenue growth of 10 percent
·EBITDA margin of at least 10 percent
·Interest-bearing net debt relative to EBITDA should not
exceed three times
Outcome
Revenue growth for 2011 amounted to 1 percent and
EBITDA margin of 12 percent.
Net interest-bearing debt fell to 1.3 times due to a high
amortization rate which was made possible thanks to a
positive cash flow.
North America
After increasing its foothold in the American vehicle
inspection industry in 2011, the company will continue
to participate in upcoming tender processes of vehicle
inspection program management contracts, in both the
US and other markets. Such contracts have proven to
generate good long-term profitability and cash flow.
Dividend Policy
Opus board has adopted the following dividend policy:
Opus dividend policy is to distribute 10-20% of the profit
on EBITDA level, provided that it meets the financial
target for net debt. For 2011, the Board will propose a
dividend of EUR 0.02 (EUR 0) per share.
Reason for changing financial goals
Previous financial targets applicable for 2008-2012 have
been re-adjusted. They were: turnover of SEK 500 million
by 2012 and an average EBITDA margin of 20 percent.
The reason for the margin adjustment is the change in
product and service mix with the acquisition of ESP, to
deliver a greater proportion of products. Combining the
Opus Group with the acquisition of ESP, and the acquisition
from Volvo provides pro forma revenues of approx.
SEK 425 million for 2011, which comes close to the previous
revenue target. With this level of revenue, the company
has now shifted to a new target for future annual revenue
growth of 10%.
Commercial goals
Europe & Asia
Opus will advance its position in the value chain to achieve
greater control and improved profitability. This is done
Key Account Managers and direct contracts with major
customers and the establishment of wholly or partially
owned subsidiaries in key markets. The business will
become less cyclical through a focus on expanding its
service business.
10%
GOAL MIN. 10 PERCENT ANNUAL REVENUE GROWTH
GOAL MIN. 10 PRERCENT ANNUAL EBITDA MARGIN
3 times
GOAL MAX NET INTEREST-BEARING DEBT/EBITDA
* Proforma sales refersto 2011 revenue, combined with the acquired
sales as if it were owned by the comapny during the year.