Strategy and targets
Our strategy – Operational Excellence
A decision was taken in 2017 to restructure Eltel in order to focus on areas with a balanced risk level in which it has a leading market position and a high level of expertise, and in which the business model is repetitive and primarily targeted towards build, service and maintenance. In 2019, Eltel took the next step on its transformation journey. A Nordic focus with lower risk and fewer capital-intensive projects will enable us to continue to develop, grow and invest in the company to ensure long-term sustainable value creation for the company and its shareholders.
In parallel, a strategy for existing operations has been developed, with a focus on operating profitability. The strategy, which is being implemented in 2019–2021, aims to raise the operating margin by generating customer focus, improving efficiency, measuring and tracking relevant key performance indicators, and simplifying the daily operations of our technicians. Furthermore, the focus is on improving the competence level within the organisation through various forms of training and recruitment.
This will create the foundation for sustainable growth, profitability and shareholder value.
Eltel’s strategy – Operational Excellence – is based on three goals that are mutually supportive and contribute to our success:
- Satisfied customers
- Engaged employees
- Rewarded owners
Focus on the Nordic markets
Eltel strategically focuses on the Nordic markets in which it has a market-leading position. A Nordic focus with lower risk and fewer capital-intensive projects enables Eltel to continue to develop, grow and invest in order to ensure long-term sustainable value creation for both the company, its shareholders and society at large.
Promoting profitability and winning market share
Eltel has four strategic priorities designed to promote profitability and win market share in its key markets:
- Always deliver on our customer promises
- Optimise the use of skills and resources
- Improve team performance
- Work smarter and improve quality.
Eltel’s financial targets by end of 2023
|Group EBITA margin||5%|
|Annual growth in the Nordics from 2022 onwards||2–4%|
|Leverage||1.5–2.5x net debt/EBITDA|
|Dividend payout||Subject to leverage target|