L&T is striving to become the leading supplier of environmental and support services. We help our customers achieve their own environmental objectives. We want to be an integral part of our customers’ daily operations, and join forces with customers to develop new practices. To be able to achieve this, we need to be able to identify our customers’ needs and match our services with their operations.
To become the preferred partner to our customers, we seek to anticipate and shape changes in environmental norms and values.
Financial targets pave the way for strategic intent
Our objective is to make L&T’s shares a sound and competitive investment. That is why we focus on improving our profitability, the primary indicator of successful performance.
Our key profitability indicator is Economic Value Added (EVA), in which we seek an annual increase, at a minimum growth in excess of net sales. Annual growth target is 10%.
We strive primarily for organic growth. In particular, we want to grow service businesses that tie up little capital and generate a steady cash flow.
In addition to organic growth, we are prepared to make acquisitions. To enhance operational efficiency, we will streamline and harmonise our operating methods and invest in technology that improves customer care.
Short-term key projects
Our main objective is to improve profitability in all divisions. To support the related efforts, we have set up named key projects designed to increase operational efficiency.
Our key projects involve logistics and production optimisation, development of sourcing operations, more-efficient use of properties, and enhancement of working capital.
As one of Finland’s biggest logistics companies, we view more efficient logistics as an effective tool in improving cost-efficiency and competitiveness. The logistics programme involves a comprehensive re-examination of logistical processes in Environmental Services and Renewable Energy Sources.
Sourcing represents a significant portion of L&T’s total costs and we intend to improve cost-efficiency in these operations over the next few years.
The nation-wide property project is designed to simplify L&T’s business site network, make more effective use of premises and reduce costs.
Furthermore, the short-term objective is to strengthen working capital and cash flow. We will pay close attention to the turnover rate of trade receivables and trade payables, and the optimisation of inventories.
Focus on the customer
Our objective is to offer the industry’s best customer experience. That is why we are dedicating customer relationship development resources to this area. Towards customers, we want to present a united front as one L&T.
Our professional competence and success are measured by our ability to attend to customer needs and show a customer-driven mindset. To stand out from competition in the eyes of customers, we will further develop our existing services and invest in long-term customer relationship management.
Responsibility for the environment and people
We cannot help our customers to build the optimal conditions for ecological business if we fail to live by our own standards. Responsibility is an inseparable part of L&T’s business and services. Environmental aspects are closely linked to our daily activities. In our service operations, special attention is paid to environmental competences.
Responsibility covers more than the environment, it also extends to people.
Our in-house development efforts focus on improving occupational safety.
We sell services provided by people. Consequently, our business and our competitive strengths rely on skilled and motivated personnel.
Strategy overhaul
During 2012, we will examine our business and structures with fresh eyes. In addition to senior management, L&T personnel and the Board of Directors will also participate in the strategy process.
Although the process will add new touches to the strategy, many of the basic elements remain unchanged. L&T is and continues to be an environmental company. We will focus on service business that does not require major capital investments. Environmental services and property services will continue to be part of L&T.