Dear colleague We have come through a difficult 2014 and achieved good sales growth and won market share. We can be proud of this, but as expected, our earnings are still far from good enough. We have to manage our costs so we can earn more, and thereby better equip ourselves for the competition and invest adequately in the building blocks needed to lay the foundation for an even more successful Grundfos in the future. You will therefore receive information in the near future about our 2020 Group strategy, which will show us the way. We have been around for 70 years, and have built up our position to be one of the best in the industry. We must continue to do this. Imagine you are on a journey towards 2020. You know where you are going and how it might look. You do not know the details of either the destination or the route, but you have a very good sense of the direction. Imagine that the same is true for Grundfos. We know where we are going and we know the general direction and our priorities along the way. But on our journey towards 2020 we will face new challenges and opportunities we had neither imagined nor predicted. This is why we have to be faster and more agile, but it is also what will make it exciting. Our vision – our destination – for the 2020 strategy is as follows: We aim to further strengthen our position as the world’s leading company in pump solutions. We aim to extend our lead for products and applications in priority core areas, through technological innovation, differentiation and competitiveness. And we aim to increase our sales by at least 6 percent per year on average up until 2020. We want our customers to recognise Grundfos as the company which best understands and predicts their needs – and provides solutions for them in such a way that they never need to worry about quality, performance or sustainability. And to maintain our customer loyalty at a world-class score of 86 in 2020. We want all employees to experience the pride of success – together. And to improve our employee motivation and satisfaction (EMS) score to 78 in 2020. We aim to achieve solid financial results which will ensure our ability to invest in the future and the long-term independence of Grundfos. And to achieve profit before tax (PBT) of 10 percent and return on capital employed (ROCE) of 17 percent in 2020. And we want to always pursue a sustainable approach to our business and offer solutions to global challenges in the areas of energy efficiency and clean water, while constantly improving our own environmental and social footprint. The strategy does not answer everything – but it defines our aspirations and sets a direction. We are embarking on a fantastic journey together, where we each have to play our part. Always on the road to the next car factory 17 28 4 5 6 12 16 24 25 29 30 Tradition meets high-tech The world is getting simpler Green ideas win three first prizes 70 years of making pump history Bridging relations West China focus achieving results Viewpoint: the Grundfos 2020 strategy 70-year pump success story 1945-2015 The human element was important Always hands on On behalf of Group Management Mads Nipper Group President & CEO 2 Gmagazine April 15
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