Home News 2014 Outotec's new long-term financial targets and existing 2020 sustainability targets
Stock Exchange Release November 27, 2014 03:29:04 PM CET

Outotec's new long-term financial targets and existing 2020 sustainability targets

OUTOTEC OYJ  STOCK EXCHANGE RELEASE   NOVEMBER 27, 2014  at 3.30 PM

OUTOTEC'S NEW LONG-TERM FINANCIAL TARGETS AND EXISTING 2020 SUSTAINABILITY TARGETS

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

For further information please contact:

OUTOTEC
Mikko Puolakka, CFO
Tel. +358 20 529 211
Email: firstname.lastname@outotec.com

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