Our strategy

As we continue to create everyday essentials to make people’s lives more liveable and inspiring, we are proud to have achieved a record year of profitability in 2016, in terms of and . Our ROS came in at 10.6 percent, while our ROI was 15.0 percent. Both performance metrics have been delivered at the upper end of our financial guidance for 2016-2018.

Our strategic vision: Leading market positions delivering leading performance (illustration)Our strategic vision: Leading market positions delivering leading performance (illustration)

The continued achievement of our financial targets over several successive years highlights the progress we have made. Our strategy is showing results. We have also made progress towards a high performance culture with the successful introduction of new values and behaviors and an increased focus on performance management. During the next few years, we will balance our actions towards driving organic growth and innovation, while pursuing value generating acquisitions.

In this Strategic performance section, we briefly highlight what we achieved in 2016, outline our ongoing ambitions and explain our key focus areas. You will also find an updated overview and outlook for our four end-user segments. The diagram on this page gives a visual summary of how all the main elements of our strategy fit together.

ROS (return on sales)

This is a key profitability measure and is calculated as EBIT as a percentage of revenue.

ROI (return on investment)

This is a key profitability measure and is calculated as EBIT as a percentage of average invested capital.