New third generation strategy is nearing completion
In 2016, Oras Invest Ltd focused solely on supporting the long-term strategic development of its four industrial companies, Oras Group, Uponor, Kemira and Tikkurila. There were no changes to the holdings. The combined net sales of the owned companies totaled EUR 4.3 billion and they employed over 13,000 people in 40 countries.
According to CEO Jari Paasikivi, both the markets and operational environment have remained volatile, unpredictable and very challenging: “In a slow-growth environment, it is difficult to increase net sales. You need to adjust and create new.”
The Net Asset Value of Oras Invest grew by 19% to EUR 945 million (EUR 795 million). The total shareholder return was 17% (9%).
Oras Group’s net sales and comparable operating profit improved slightly. At the end of 2016, two strategic business units – Oras and Hansa - were formed and the development of a new product portfolio serving both brands proceeded as planned. Oras Invest is the 100% owner of Oras Group.
Uponor’s net sales improved slightly and its comparable operating profit rose by an impressive 20%. The major ongoing transformation programs started to produce savings. Uponor strengthened its efforts in the digitalization sphere by investing in new technologies. Oras Invest’s ownership in Uponor is 23%.
Kemira’s net sales remained at around the prior year’s level and its comparable operating profit improved slightly. Efficiency and the customer experience will be improved by a new operational excellence program. Annual savings from the program are expected to reach EUR 20-30 million within 2-3 years. Kemira has announced the merger of its Municipal & Industrial and Oil & Mining segments into a single new Industry & Water segment. Oras Invest’s ownership in Kemira is 18%.
Tikkurila’s net sales declined by 2% and its comparable operating profit fell by 8%. The weakening of its key foreign trading currencies, the Russian ruble and the Swedish krona, made the year even more challenging for Tikkurila. Investments in sales and marketing increased costs. Oras Invest’s ownership in Tikkurila is 18%.
CEO Jari Paasikivi: “Oras Invest has embarked on a major project: We are building a third-generation strategy and risk management model for our family company. Oras Invest will continue as a family company and as an industrial owner, but we will deepen our strategic reach as an owner and identify new opportunities. We expect the markets to be volatile for the foreseeable future.” “Our companies will continue to build their market resilience through ongoing efficiency improvements, and by developing their value creation capacities,” says Jari Paasikivi.
For further information, please contact:
[email protected] tel. +358 10 28 68 112
Oras Invest’s Annual Review 2016 (www.orasinvest.fi).
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