Cheminova's development projects and acquisitions are to be partly self-financed as an element in the "Five-in-Fifteen" strategy plan. It is crucial that the debt is reduced, e.g. by maintaining a strong focus on working capital management.
The working capital constitutes the total amount tied up in inventories and trade receivables less trade payables. By reducing the tied-up funds in these areas, tied-up funds are released with improved liquidity and reduced interest payments as a result.
Targets:
- Net debt must be reduced to under DKK 2 billion before the end of the year. This is approx. DKK 0.5 billion less than the status after the first half of 2010. In Q3 2010, debt was reduced by DKK 169 million, which is a step in the right direction.
- The long-term target is to reduce working capital making it corresponding to an average of 40% of revenue. At the moment, it corresponds to just under 60%. Relative to current revenue levels, this corresponds to an approx. DKK 1 billion improvement in working capital.
In the shareholder letter you can read more about what we are doing to improve working capital.
 Download the shareholder letter and read more
Growth targets in Business Plan ”Five-in-Fifteen”
- Double market share to 5% in 2015.
- Higher earnings with EBITDA matching the best among peers in the industry.
- Increased value creation for the benefit of all stakeholders.
How do we achieve the ambitious long-term targets?
- Organic growth through development and sales of new products.
- Acquisitions of complementary products and companies.
- Economies of scale and improved efficiency in all functions.
The shareholder letter has been forwarded by ordinary mail to Auriga’s shareholders and released as Investor News via NASDAQ OMX, Copenhagen, GlobeNewswire.
See Auriga’s investor news
See Auriga's shareholder letters 2010
See the Auriga's Group Management and the Top Management of Cheminova
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