Innofactor's strategy update and dividends policy
26.08.2011 00:00
Innofactor Plc Stock Exchange Release 26 August, 2011 at 8:30 a.m. Finnish time
On 25 August, 2011, Innofactor Plc’s Board of Directors decided to update the Group’s strategy and draw up a dividend distribution policy for Innofactor.
Innofactor’s updated strategy includes the production of mobile services. The partnership between Microsoft and Nokia opens up new opportunities in the production of value-added services for mobile equipment. The current global economic instability may affect Innofactor’s operations from the 2012 on. Instability can have a positive effect on mergers and acquisitions and have an impact on Innofactor’s performance.
In addition to introducing these changes in strategy, Innofactor’s Board of Directors decided to adopt a dividend distribution policy. The aim is “to provide an opportunity for the shareholders to distribute a maximum dividend of 10%, where allowed by the state of the business from time to time, on the operating profit before depreciation and write-downs (EBITDA)”. Innofactor has no previous dividend distribution policy.
The key points of Innofactor’s strategy are as follows:
Innofactor provides web-based solutions and value added services. Innofactor is focusing on operating in Microsoft environment. Innofactor’s clients are enterprises and public administration. Innofactor operates mainly in Finland offering solutions also for global market. Innofactor continues to seek potential strategic partnerships in Finland and neighboring countries. The group will seek growth, which can be organic or based on mergers or acquisitions. Innofactor is offering innovative and globally-competitive software solutions and solution components for the Microsoft cloud utilizing several distribution channels.
Innofactor’s mission is
• to help customers to offer their own customers even better services and to improve their own operations
o by providing globally significant value-added services for the Microsoft cloud and mobile environments , and
o by creating packaged solutions for customers in Finland and the neighboring countries; and
• to offer both its staff and its partners an innovative and supportive environment in which they can continue to develop their work and operations.
Innofactor’s vision is
• to become Microsoft’s most important partner in value-adding cloud and mobile services in a global level and Microsoft’s most important integrator in selected markets.
Innofactor’s strategy focuses on differentiating the company by being a leading Microsoft solution provider, and the most important strategic choices in this respect are:
• continuing to produce the best innovative solutions in the market;
• carrying out highly customer-oriented operations;
• offering customers a one-stop service for leading Microsoft solutions;
• operating in a cost-effective manner, where software created by Innofactor, Microsoft and third parties and other available resources are utilized in an optimized way
Implementation of the strategy will focus on ensuring that Innofactor’s supply and operations will remain clear and simple to manage, irrespective of any mergers or acquisitions that may take place.
Innofactor’s goal is to grow profitably:
• to achieve an average annual growth of 30-40% in 2011-2015 through both organic growth and acquisitions;
• to achieve an annual operating profit of 10-15% before depreciation and write-downs (EBITDA) in relation to the net sales in 2011-2015;
• to keep the cash flow positive and secure good financial standing in all situations;
• provide an opportunity for the shareholders to distribute a maximum dividend of 10% on the operating profit before depreciation and write-downs (EBITDA), where allowed by the state of the business from time to time.
INNOFACTOR PLC
Board of Directors
Further information:
Sami Ensio
CEO
Innofactor Plc
Tel. +358 50 584 2029
Distribution:
NASDAQ QMX Helsinki
Main media
www.innofactor.com