Raute updates its strategy and introduces new financial targets

Raute Corporation, Stock exchange release, 30 March 2023 at 13:45 EEST

Raute updates its strategy and introduces new financial targets for the five-year strategy period to support its ambition for sustainable growth. According to the new strategy, Raute is the partner to future-proof the wood industry. With our unique solutions, we drive change and promote resource-efficient society.

Raute – Making Wood Matter

Our foundation is strong, as we are the global market leader in veneer, plywood and LVL production technologies. In this segment, we will grow our Services concept and strengthen our offering in Analyzers and Wood Processing with innovative production solutions and models, as well as data and digital tools.

Moving ahead, our aim is to accelerate growth by expanding Raute’s portfolio into new wood products segments, especially through digital and analytical solutions and new service concepts.  In the Wood Processing business unit, we will focus on improving profitability and geographical expansion. In the Services business unit, we will expand our global network and digital offering. In the Analyzers business unit, we will create new software solutions using artificial intelligence and analytics for a broader end-use offering.

Our commitment is to lead the industry towards a more sustainable future in engineered wood products. This is especially important now as the usage of wood in building construction increases, labor shortages and production costs pose challenges to production efficiency and quality, and the interest in more local veneer and plywood production accelerates. For the engineered wood products industry, these trends create versatile opportunities to improve resource efficiency across the value chain, and we have already had our first openings in massive wood products area.  

“At Raute, we have integrated sustainability as a fundamental aspect into our operations, balancing economic, social, and environmental considerations in our decision-making processes. By optimizing the value of products and services throughout their entire lifecycle, we can minimize the waste of resources and energy. Our company culture is built on unwavering principles of safety, ethical conduct, and diversity and inclusion. Eventually, we want to generate growth for all our stakeholders with high ESG standards and deliver a lasting positive impact on nature and society”, says Mika Saariaho, President and CEO of Raute.

Raute’s new financial targets for 2028 aligned with the strategy are:

• Net sales 250 MEUR, including both organic and inorganic growth
• Services and Analyzers relative share of net sales 40% of the Group
• Comparable EBITDA margin 12% on average over cycle
• Capital structure: Equity ratio over 40%

Raute aims to pay a stable and sustainable dividend over different market conditions.

The previous financial targets were to grow faster than the market, improve profitability, maintain strong balance sheet and competitive return to investors.

RAUTE CORPORATION
Board of Directors

FURTHER INFORMATION:
Mr. Mika Saariaho, President and CEO, tel. +358 40 1549393

RAUTE IN BRIEF - MAKING WOOD MATTER 
Raute is the partner to future-proof the wood industry. Our technologies cover different production processes with supporting digital and analytics solutions for engineered wood products.  Additionally, we offer full-scale service concept ranging from spare parts to regular maintenance and modernizations. Our innovative hardware and software solutions are designed to support our customers’ efficient consumption of natural resources. In mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Raute’s head office and main production is located in Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, Changzhou, China, and in Pullman, WA, USA. Raute’s net sales in 2022 were EUR 158.3 million. The Group’s headcount at the end of 2022 was 778. More information about the company can be found at www.raute.com.