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.
A higher operating margin is important, not just to create long-term shareholder value, but rather to drive the cash flow and the possibility of investing in new technology. Haldex’s core business can be streamlined and optimized.
This can take place through more efficient handling of the supply chain, which also includes raw material prices and tariffs, higher growth on the aftermarket, reduction of the fixed costs and review of the product
portfolio to ensure focus on the most profitable products.
The objective is to achieve an operating margin of 10 percent by 2022, excluding investments in new technology. The cost of R&D will continue to be at a higher level than earlier years and will affect the total margin for the Company.
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.
NET DEBT/EQUITY RATIO
A low net debt/equity ratio means a strong balance sheet. This provides the scope to make acquisitions and invest in future projects. The objective is to achieve a net debt/equity ratio of less than 1.
Haldex aims to provide stable and predictable shareholder returns. Haldex’s dividend policy states that one-third of annual net profit over a business cycle should be distributed to shareholders.
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.
Haldex has zero tolerance for workplace accidents. With the Safety #1 program, Haldex works systematically to prevent accidents and incidents through training, safer workplace environments and attitude changing.
Haldex has zero tolerance for bribery, corruption, child labor and discrimination. Haldex’s employees are continuously trained in the Code of Conduct and suppliers are continuously assessed to ensure they adhere to the applicable sections of the Code of Conduct.
With eight production plants and a number of facilities for refurbishment of products, Haldex’s environmental management achieves noticeable effects. Haldex targets reducing CO2 emissions and maintaining or increasing material efficiency.