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 a sustainable operating margin above 10 percent.
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 organically grow in line with or faster than the company's end markets.
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 1.5 (incl. IFRS 16).
Haldex aims to provide stable and predictable shareholder returns. The dividend shall correspond to 1/3 of the annual net profit taking into account the company's long-term investment needs and financial position.
People and environment
Haldex’s sustainability vision is to contribute to society by improving vehicle safety and efficiency with its products performance and optimization of resources. In a materiality analysis, Haldex, in dialogue with customers and other stakeholders, has identified opportunities and challenges in safety, ethics, the environment and HR, which form the basis for specific goals and activities for all groups. Risks related to sustainability are continuously analyzed.
Haldex works in several dimensions to ensure the safety of both customers and end users, as well as a safe working environment for Haldex employees. With the Safety #1 program, Haldex works systematically to prevent accidents and incidents through training, safer workplace environments and attitude changing.
- Work-related accidents per million hours worked. Target: max 3
- Work-related safety incidents per million hours worked. Target: > 10
times higher than accidents.
- Work-related safety risks observed per million hours worked. Target: > 10 times higher than incidents.
Haldex has high aspirations to run an ethically sustainable business and has zero tolerance of 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.
- Number of employees trained in the Code of Conduct. Target: 100%.
- Number of investigations regarding breaches of the Code of Conduct that are completed. Target: 100%.
- All new suppliers must be reviewed by NQC before being approved as suppliers
The environmental area is a major and important part of Haldex’s sustainability efforts. Haldex makes active efforts to reduce its environmental impact, which includes reducing environmentally hazardous emissions, and sustainable use of resources.
- Material use efficiency. Target: 94.1%
- Carbon dioxide emissions. Haldex global CO2 target will be defined during 2021.
- Carbon dioxide emissions per unit.
- Product lifecycle and requirements on material choice is taken care of at the design of the products in the IMDS (International Material Data System) database.
Haldex strives to continuously develop our organization for excellence – through strong, sustainable leadership, competent and dedicated employees and an empowering culture – and always with diversity & inclusion in focus.
- Percentage of female managers. Target: at least 30%.
- Healthy attendance. Target: at least 98%.
- Employee satisfaction index. Target: at least 70%.
- Proportion of vacancies filled with internal candidates. Target: at least 30% of all vacancies should be filled internally.
- Development plans for all employees. Target: 100%.
- Employee turnover. Target: 8%.