Sorry, the publication can not be displayed.

It might be because:

The use of JavaScript is turned off in the browser.
JavaScript is needed in order to display the content of this page.

Adobe Flash needs to be installed or updated –
Please click on the box below for installation.

S T R AT E GY BACK TO BLACK DLH STRATEGY 20102012 BACK TO BLACK Our point of departure Our situation and the strategy for the future Prior to the global economic slowdown DLH has grown the business through several (16) acquisitions both upstream in forestry and production as well as expansions in the market. DLH has during the last two years faced massive losses and an increasing debt. The business model and ability to control and adjust to changed market situations has shown to be vulnerable. DLH is in a difficult situation but has very good opportunities to become a strong, leading and profitable player in the wood supply business. The actions already taken in the last part of 2009 and the strategy for the next three years (20102012) will bring DLH in a much stronger position. DLH in the future will be characterized by a strong market orientation, more focus and critical mass, more unity and a reduced complexity. For DLH the journey will result in significantly improved financial performance (revenue, EBITDA and NIBD), a stronger and more clear business model and a freedom to act and develop the business even further. customers and also have the size, the scale and a responsible way of doing business that makes DLH attractive to do business with for the groups suppliers. Financially the ambition is first of all to become profitable and reduce the debt significantly because it gives the strength and freedom to act and develop the many promising business opportunities. The strategy To meet the ambitions the strategy is to: - - ocus the business model on sales and sourcing and divest F all forestry and production activities to reduce complexity and capital demands - - e fully market oriented and achieve excellence in core B disciplines like sales, pricing, supply chain and management of working capital - - ecome one transparent highly efficient and co _ working B organization with industrialized processes and same way of working Profile of the future DLH The company that results from implementation of the strategy in DLH is: - - A wholesaler with a strong European position and focus, foothold in Russia and USA and activities in other markets served by Global Trading - - A well coordinated, strong and flexible Global Sourcing activity capable at finding attractive products and ensure an efficient supply at competitive prices while maintaining high environmental standards - - A focused and less complex organization acting as one global company with clear coordinated goals focusing on optimizing the whole chain and working closely together - - An organization developing and utilizing best practice across the organization with focus on activities like sales management, pricing, supply chain and management of working capital - - A more transparent organization with better reports and information and much better ability to control and act to changes and opportunities Actions already taken As announced a number of actions have already been taken in order to reduce the losses and prepare the way forward. DLH has laid off 1,000 employees, closed down sales and production sites and reduced the number of locations. In parallel to that a new arrangement has been settled with the banks, a new organization has been launched and the Back to Black strategy has been developed and approved. The strategy DLHs ambition The ambition is to be the leading wholesaler of wood in the markets and segments DLH chooses to serve with wood from a global sourcing network. Being the leader allows DLH to set the pace, drive the development, have a strong offer to the DLH G R O U P 1 S T R AT E GY BACK TO BLACK DLH STRATEGY 20102012 BACK TO BLACK Our point of departure Our situation and the strategy for the future Prior to the global economic slowdown DLH has grown the business through several (16) acquisitions both upstream in forestry and production as well as expansions in S T R AT E GY BACK TO BLACK The journey and the key initiatives An ambitious transformation DLH is looking into an exciting but demanding change. It is demanding because: - - There are a lot of things to be done in the years to come - - DLH is under time pressure and a succesful turnaround should g S T R AT E GY BACK TO BLACK Organization Idea The idea is to transform from a group of many individual companies and sites and act as One Company. This means that focus will be on optimizing the results for the group and on establishing a closer teamwork. More similar and clear structures, KPIs and