Volvo 2012 Annual Report Download - page 16

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Drive organic
revenue growth
Improve
profitability
The strategy for 2013–
2015 will ultimately lead
to higher organic growth,
while profitability will
improve as we improve
cost-efficiency and apply
effective pricing and
optimized positioning of
our brands and products.
Targets to secure improved
Group profitability
The targets for the coming strategy period, 2013 – 2015, was announced in autumn 2012. The overall
target is to increase the operating margin by 3 percentage points for the Group as a whole. The truck
operation has the greatest impact on profitability. The calculation below is based on Group sales of
SEK 300 billion and truck sales of SEK 200 billion. To safeguard against unexpected events, 2 percent-
age points in the form of “headwind factor” have been deducted.
percentage
points
+3
Expected impact on
Strategic objectives Group operating margin
Trucks’ impact + app. 4.0 percentage points
on Group
Business Areas: + app. 0.5 percentage points
Volvo CE, Buses, Volvo Penta,
Governmental Sales,
Financial Services
IT cost at 2% + app. 0.5 percentage points
of total
Group costs
= app. 5.0 percentage points
Headwind factor
Targeted net improvement = app. 3 percentage points
A GLOBAL GROUP 2012 STRATEGY STRATEGIC APPROACH
12