Growth strategy 2020: benefiting from the megatrends
SAF-HOLLAND has based its growth strategy 2020 on global megatrends. The message from the megatrends that are relevant for the transport sector is clear: a growing middle class as well as more purchasing power and consumption primarily in various emerging markets means a greater volume of goods transported via roads with trucks and trailers. With the growth strategy 2020, we are consistently aligning our business operations and our Group structure towards these global developments and are taking advantage of the growth potential that results for our business model. We have developed a total of 64 business plans for markets and products that we will roll out and with which we intend to grow organically.
Tapping new markets
This structural market growth is primarily expected in emerging countries, in particular in the Asian-Pacific, Middle Eastern and African markets. On the basis of our core competencies, we are therefore focusing on expanding the product portfolio and opening new regional markets outside of our current core markets of Europe and North America.
Strengthening market position in core regions
The core regions will not be forgotten. We see great growth potential within axle and suspension systems for trailers in the core markets and want to significantly increase our market share, particularly in North America, through production innovations and the gradual utilization of already existing capacities.
Expanding global position
In the segment of suspension systems for trailers, trucks and buses, we are planning to continue to expand our position, in our core markets as well as emerging countries, through product innovation, weight reduction, and applications for specialty vehicles.
Extending the global Aftermarket business
In all regions, we will strengthen our aftermarket business through the creation of new international distribution centers and additional sales representative offices. In Europe and North America, our business is benefitting from the large number of trucks and trailers that have already been equipped with our products in the original equipment. In emerging markets, it is first to lay a basis via the original equipment business for future aftermarket business and to develop the regional spare parts and service networks.
Financial Targets of Strategy 2020:
- Sales of EUR 1,250 million to EUR 1,500 million* to be achieved by 2020
- 30% of sales to be generated outside the current core markets of Europe and North America
- The adjusted EBIT margin is to reach on average at least 8%
- Earnings per share are supposed to increase by around 75% compared with 2014** by 2020
**taking into consideration the increased number of shares from the convertible bond issue in 2014