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
Outotec provides leading technologies and services for the Sustainable use of Earth’s natural resources. As the global leader in minerals and metals processing technology, we have developed many breakthrough technologies over the decades for our customers in metals and mining industry. We also provide innovative solutions for industrial water treatment, the utilization of alternative energy sources and the chemical industry. Outotec shares are listed on NASDAQ OMX Helsinki. www.outotec.com