Swiss company Autoneum sets ~$3.47 bn revenue target

In his introductory speech, CEO Eelco Spoelder presented the current challenges and developments in the automotive industry and the company’s mission statement derived from them as well as Autoneum’s new ‘Level Up’ strategy. The strategy consists of six pillars: Shape a future-fit product portfolio; Innovate to create customer value; Accelerate global growth; Foster a people centric culture; Be the sustainability benchmark; Boost cost competitiveness. In addition, Spoelder explained how various strategic initiatives will contribute to a targeted increase in order intake and profitability.

Pascaline Brégeon, head strategy and sustainability, then provided an overview of current sustainability regulations and how Autoneum is turning its challenges into opportunities to further expand its global market leadership.

Philippe Godano, head core technologies research & technology, discussed how current technology trends in the automotive industry and changing customer needs are influencing Autoneum’s innovation process. Using examples, he also presented the development of new technologies and products that will expand the already balanced and future-fit product portfolio, the company said in a press release.

CFO Bernhard Wiehl also presented the revised medium-term targets. Supported by a comprehensive package of strategic initiatives and a targeted increase in market share with existing and new customers, Autoneum plans to increase revenue up to CHF 3 billion (~$3.47 billion) in the medium term. Based on the expected revenue development, the consistently implemented strategy, the increased operational excellence, the promotion of innovation, sustainable processes and employee development, the company expects an EBIT margin of 6 per cent to 8 per cent over the cycle. In addition, it aims to achieve solid free cash flow of at least 5 per cent of revenue and a net debt to EBITDA ratio of less than 1.5x.

To underline the importance of sustainability, two of the most important of the existing environmental, social and governance (ESG) goals have been added to the medium-term targets: a 20 per cent reduction in CO2 emissions (from Scope 1 and 2) and a 40 per cent reduction in non-hazardous waste by 2027 compared to the 2019 baseline.

In addition, the company confirms its long-standing dividend policy of paying a dividend of at least 30 per cent of the profit attributable to Autoneum shareholders.

Fibre2Fashion News Desk (RR)