Mid-term targets

Mid-term targets

The Komax Group has a robust capital base, and has set itself ambitious targets for both growth and profitability by 2023. It is seeking to increase the value of the company on an ongoing basis through profitable growth. Based on IHS Markit’s analyses of developments in the automotive market, the Board of Directors set revenue and EBIT targets for 2023 and confirmed the company’s attractive distribution policy at the beginning of March 2020 – i.e., before the extent and the consequences of the coronavirus pandemic had become apparent.

Komax is striving to achieve revenues of CHF 450–550 million by 2023, primarily on the basis of organic growth. Komax is estimating that the market will grow on average by at least 8%–10% per year from 2021 to 2023. This growth is based on the annual increase in the number of vehicles produced globally (CAGR: 6%–7%) and the steady rise in the degree of automation in wire processing (CAGR: 2%–3%). Komax is expecting to generate annual organic revenue growth at least in line with the growth of the market.

The company has a broad portfolio of innovative solutions. Rising revenue figures and an advantageous product mix enable Komax to deliver disproportionately high increases in profitability. It is seeking to achieve EBIT of CHF 50–80 million in 2023.

Thanks to a business strategy that is geared toward long-term success, Komax creates sustainable value that benefits investors too. Komax has set itself the goal of distributing 50%–60% of Group earnings after taxes (EAT) to its shareholders every year until 2023.