Haldex’s strategy is based on a business model in which generating value for people and the environment is just as important as growth and profitability. It builds a sustainable and successful business for the short and long term.
Growth creates economies of scale. This is crucial for a company like Haldex, which invests substantial amounts in product development each year. Haldex aims to outperform the market through organic growth. To achieve comparable figures, market growth is weighted by region and customer segment based on Haldex’s volumes. In 2016, Haldex’s sales
declined by 9 percent while the market decreased by about 4 percent.
However, growth without profitability does not create value. Profitability creates opportunities for investing in projects to further enhance the product range, strengthen the marketing organization and provide scope for innovation. The objective is to sustainably achieve an operating margin of not less than 10 percent. The objective is to achieve this margin level even during periods of weak economic growth. In 2016, a margin of 6.6 percent was achieved, attributable primarily to the decrease in volumes. The underlying cost structure is good.
NET DEBT/EQUITY RATIO
A low net debt/equity ratio means a strong balance sheet. This provides us with the scope to make acquisitions and invest in future projects. The objective is to achieve a net debt/equity ratio of less than 1. This is an objective we have achieved for several years, including in 2016.
We aim to provide stable and predictable shareholder returns. According to our dividend policy, one-third of annual net profit over a business cycle should be distributed to shareholders. Given the public offer situation, 2016 was a special year. A dividend would be offset against the bid price and, accordingly, there was no reason to recommend a dividend for this year.
PEOPLE AND THE ENVIRONMENT
Haldex’s sustainability vision is to contribute to society by improving vehicle safety and efficiency with its products performance and optimization of resources. Three areas were identified as key to making a real difference – safety, ethics and the environment.
We have zero tolerance for accidents. With the Safety #1 program, we work systematically to prevent accidents and incidents through
training, safer workplace environments and changed attitudes.
We have zero tolerance for bribery, corruption, child labor and discrimination. Our suppliers are continuously assessed to ensure they adhere to the applicable sections of our Code of Conduct. By promoting shared values throughout the supply chain, we aim to contribute to a better society. Our employees shall undergo regular training in the Haldex Code of Conduct.
With eight production plants and a number of restoration facilities, Haldex’s environmental management achieves noticeable effects. For
2016, Haldex aims to reduce CO2 emissions by 1.4 percent and to maintain or increase material efficiency.
- September 19, 2017 | Press release Knorr-Bremse withdraws its public offer for Haldex Knorr-Bremse has today announced the withdrawal of its public...
- September 7, 2017 | Press release The Swedish Securities Council stops an extension of the offer from Knorr-Bremse The Swedish Securities Council has today announced their decision...
- August 25, 2017 | Press release Haldex rejects the approval of a further extension by the Swedish Securities Council External opinion supports the Board’s assessment