As we continue to create everyday essentials to make people’s lives more liveable and inspiring, we are proud to have achieved the financial targets that we set ourselves for 2015. Our return on sales came in at 10.6 percent (target: 9 percent), while our return on investment was 15.0 percent (target: 14 percent).
Our vision remains: Leading market positions delivering leading performance
Achieving our targets represents significant progress for the company. However, we know we must continue to improve to achieve our vision of leading performance in all the markets in which we operate. So we are maintaining that same vision for the next phase of our strategy development, which includes new financial guidance. For the period 2016-2018, our guidance is:
- Return on sales between 9 and 11 percent
- Return on investment between 13 and 16.5 percent
- Clear aim to build on the foundation we have created and grow in line with, or faster than, our relevant market segments
In addition, we remain committed to our strategy, including our core principles and values, strategic focus areas and core processes. In the next phase of our strategy, our action focus will switch to a greater emphasis on organic growth and innovation. The next steps we have identified are:
- Hardwire new organization model
- Deliver continuous improvement culture
- Build further operational excellence
- Drive organic growth and innovation
- Pursue value generating bolt-on acquisitions
The strategy framework for the next phase of our development is shown above. More detailed information on these next steps is provided later in this section.
This is a key profitability measure and is calculated as operating income as a percentage of revenue.
This is a key profitability measure and is calculated as operating income as a percentage of average invested capital.