Objectives

Objectives

TenCate has the following qualitative and financial objectives.

Qualitative

The qualitative objectives of TenCate are: 

  • Value creation for shareholders. Making optimal use of the resources available, taking into account the company’s social, ecological and economical responsibilities 
  • Growth. Creating a critical mass by occupying leading positions in specialist market niches 
  • Healthy financial position with sufficient strength to undertake acquisitions 
  • Balanced portfolio of activities. Product-market combinations differ in terms of growth potential and risk profile 
  • Open company culture. Promoting an open culture for progress and innovations 
  • Solution driven. A commercial organization that thinks in terms of systems (solutions) instead of the traditional role of the provider of materials or components (for the system)

Financial

The financial objectives of TenCate are: 

  • The net capital employed must generate a sufficient return. The operating result before amortization as a percentage of net capital employed must be at least 15% 
  • The financial position must be sufficiently solid. The ratio of net interest-bearing debt to operating result before amortization and depreciation (EBITDA) must be structurally lower than 2.5
  • Long-term growth. The long-term growth of net earnings per share before amortization must be at least 10% 
  • An appropriate profit margin must be achieved. The EBITA margin should gradually rise to at least 10%
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