2009 - Jaarverslag

OBJECTIVESQUALITATIVE STRATEGIC OBJECTIVES◾ Creation of shareholder value through profitable growth based onour knowledge, skill and internal synergy. In this way we can takeaccount of our social responsibilities;◾ Achievement of critical mass in product-market-technologycombinations by securing leading positions in worldwide marketniches;◾ Achievement of a healthy financial position with sufficientstrength for acquisitions;◾ Management of a balanced portfolio of activities, in whichproduct-market-technology combinations differ in terms of growthopportunities and risk profile;◾ Stimulation of an open, creative and enterprising culture forprogress, change and renewal;◾ Management of a global commercial organisation which thinksin terms of (system) solutions within the overall value chain.FINANCIAL OBJECTIVES◾ The net capital employed must generate a sufficient return.The operating income before amortisation as a percentage ofaverage net capital employed must be at least 15%;◾ The financial position must be sufficiently solid. The ratio of netinterest-bearing debt to operating income before depreciationand amortisation (EBITDA) must be structurally lower than 2.5;◾ The target of 10% profit growth is based on EBITA (operatingresult before amortisation). The sharp decline in profit for 2009 hasinterrupted the trend. This financial year should be seen as anexceptional year. In the long term, the ambition remains togenerate annual profit growth of 10%. To this end, the buy & buildstrategy will be pursued. Higher added value and efficiency arealso necessary, since the organic growth of the core activities willbe below 10% on average;◾ An appropriate profit margin must be achieved. The consolidatedEBITA margin should rise to at least 10%.TenCate Business ModelOur clear vision, mission and strategy set the course for the corporation. The strategy focuses on value chain management.END-USER MARKETINGbusinessdevelopmentINNOVATIONIn day-to-day practice, the TenCate business model is used as the basis for structuring, implementing and operationalising thebusiness. Our challenge resides in finding the ultimate balance between the four cornerstones.marketmarketEXTERNALmanagementproductDIFFERENTIATIONtechnologyprocessVALUE CHAIN MANAGEMENTINTERNALmanagementprocessportfolioCOST LEADERmanagement© Business Model Royal TenCateAnnual Report 2009 9