Strategy and targets

As a provider of technical services for power and communication networks, we recognise that operational excellence must be key to everything we do.

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.

Our goals

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 operative 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