Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 8Companystrategy‘Wavin 2015’Following a phase in which we successfully managed our company through the financial crisis, welaunched the ‘Wavin 2015’ strategy update in October 2010. This strategy brings our company backon the path to sustainable and profitable growth and will enable us to reap the full benefits once themarkets return to more normal levels.Priorities and targets for the period 2011-2015Our priorities are:• Market Leadership – We will continuously build on our existing leading market positions in keyEuropean countries and invest (both organically and through acquisitions) in other Europeancountries where leadership can be achieved. The ultimate goal is to achieve number one or twomarket positions in all markets in which we operate.• Portfolio and Segmentation – We intend to offer a complete product portfolio to our customers andincrease our presence in non-residential building markets, with a strong focus on sustainable systemsand solutions. We also aim to increase revenue in key target segments. By 2015, 40% of Wavin’stotal revenue should originate from the Water Management and Hot & Cold (including SurfaceHeating & Cooling) segments.• Operational Excellence – We aim to drive service and cost leadership through complexity reductionand a lean and sustainable manufacturing and supply chain footprint. Our benchmark is to have 95%of orders realised in time and in full. Between 2008 and 2015 the company’s carbon footprint shouldbe reduced by 20%.• Innovation – We will focus on and accelerate the implementation of European innovation projects.The innovation rate target – the percentage of revenue from products that have been on the marketfor less than fi ve years – has been raised, it should be 20% in 2015.• People – We want to stimulate continuous improvement and drive individual and team development.Through this strategy we want to achieve the following targets:Achieve leadershipin every market inwhich we operate• Revenue – We aim to grow organically at least 2% ahead of the European construction industry.Revenue development will be driven our presence in emerging markets, ongoing substitution oftraditional materials by plastics, and the increasing need for energy effi ciency of buildings and watermanagement solutions.• Margin – We aim to return to pre-crisis margins despite lower revenue levels, refl ecting the benefi tsof strong local market positions, innovation and structural cost savings.• Financial leverage – We will reduce the leverage ratio to an average ratio of 2.0 over the year.Steps taken in 2010:Market Leadership• We took encouraging steps to further enhance our market presence. In Sweden we acquired thedrinking water business of KWH, putting us into the local number two position in the below groundmarket and strengthening Wavin’s product offering in Sweden and Norway. In Czechia we concludeda sales joint venture that compliments our existing product offering and enables us to supply the localmarket with a full product offering. At the same time, we downsized our activities in Portugal andSwitzerland.