WORLD CLASS - through people, technology and dedication
KONGSBERG is to be an internationally-oriented, technology enterprise headquartered in Norway. Shareholders' assets will be protected and enhanced by using the Group's high level of knowledge to develop attractive solutions for the market, and to make constant operational improvements:
- Improvement measures will be implemented continuously to promote profitability.
- Growth and profitability will be generated through organic growth, acquisitions and structural initiatives.
- The Group will be organised in a manner designed to exploit coherence and possible synergies.
- Operations should be handled in an ethically, environmentally and socially responsible manner, maintaining a clear profile and a good reputation.
Important initiatives for achieving the objectives include:
KONGSBERG's markets are characterised by stringent requirements for performance, quality and operational reliability. 80 per cent of the Group's operating revenues were earned outside Norway in 2009. KONGSBERG strives to develop its marketing system to help meet customers' needs in an efficient manner. Customer proximity and cooperation on the development of optimal solutions are crucial. Strategic alliance-building is a prerequisite for success in several of KONGSBERG's product areas.
Concentration on the business areas
The business areas are continuously reviewed to identify activities which do not occupy a natural place there, or which might better be developed under the auspices of other industrial constellations. The Group considers these areas thoroughly in an effort to conserve assets insofar as possible.
Acquisitions are a key part of the corporate growth strategy in core areas. The goal of acquisitions is to exploit common technologies and achieve market synergies. Other motives include a desire to supplement the range of products, and to gain access to new markets or specialised technology. The desire for constant improvement in the Group's strategic market position plays a key role in its acquisition strategy.
Knowledge and expertise are KONGSBERG's most important competitive parameters. Opportunities for human resources development are crucial to positive performance trends, making them a high priority. It is important to offer attractive, challenging jobs. Leadership development programmes are conducted systematically.
Corporate Social Responsibility and Ethics
KONGSBERG has a corporate Code of Ethics, an environmental policy and a policy for corporate social responsibility. These are basic elements in the efforts to achieve a corporate culture that supports profitable, sustainable development.
Product development costs are equivalent to approx. 10 per cent of KONGSBERG's operating revenues each year. A high level of activity in this field is a prerequisite for profitable organic growth. Product development may be funded by customers and/or equity-financed. The needs of the market invariably determine our direction, ambitions and solutions for product development. KONGSBERG's products are largely based on the following core competencies: software development services, engineering cybernetics, systems integration and signal processing.
The Group's management attaches importance to having the financial wherewithal needed to ensure its freedom of action. Growth is to be funded mainly by earnings and the freeing up of previously tied-up capital. External funding is always based on a long-term perspective that is commensurate with the Group's business strategy. The Group's financial policy aims primarily at increasing predictability and reducing risk.