• Strategic Platform
• Financial Targets
• Vision

Financial targets

Rieber & Søn will prioritize internal improvements and higher profitability in the period 2009-2011. Our plans and expectations can be summarised as follows:

Financial plan

Moderate top line growth: We have moderate expectations of top line growth. Growth will depend on the general level of inflation and, more specifically, on price and currency developments, in particular price developments related to agricultural commodities and packaging.

Lasting savings of NOK 400m: The programmes initiated under ”Our Future” will bring lasting cost savings. The improvement effects will be felt in purchasing, production, administration and sales/marketing. Together, these improvements will bring gross accumulated effects totalling NOK 400m in 2012. The additional consumption of resources of a one-time nature needed to achieve these improvements is estimated at NOK 125m.

Brand strengthening: Strengthening of our market positions and brands will require increased resource allocations in these areas. Our financial plan assumes that the relative level of sales and marketing costs will increase from around 13 percent of net sales income in 2008 to about 15 percent in 2012.

Operating profit (EBIT): The effects of ”Our Future” will be reflected in a higher operating profit (EBIT) in the period 2009-2011. ”Our Future” will also have positive effects on both working capital and fixed capital, and thus improve the return on capital employed (ROCE).

Dividend: Rieber & Søn’s aim is to pay a dividend of between 40 and 60 percent. Measured in NOK, the dividend will steadily rise in line with increased profitability. Payment of an extraordinary dividend will be considered if the capital situation warrants this.

Financial targets

EPS:
Target: NOK 4.40 in 2011.
Result 2010: NOK 3.83 (3.09) on core activities, NOK 3.91 including one-off costs.

EBIT margin
Target: >10 percent in 2011.
Result 2010: 10.1 percent (8.5).

ROCE:

Target: 17 percent 2011.
Result 2010: 15.0 percent (12.8).

Our Future:
Target: Lasting cost savings of NOK 400m in 2012.
Result 2010: Positive whole-year effects of NOK 305m