Global strategy to increase growth

Coloplast aims to be the market leader in all business areas, to be superior within innovation and to create increased value to capture new geographical markets.

• Coloplast aims to be the global market leader in all existing business areas
• To achieve a global revenue of DKK 13b in 2012 through organic growth
• At least to double economic profit (EP) every five years
• To increase profit margin (EBIT) to at least 18% in 2012 

Earlier today, Coloplast released the financial statement for 2004/05, which clearly indicated that growth must be increased to at least 10% per year over the coming seven years. Revenue increased by 8% to DKK 6,528m and operating profit by 2% to DKK 1,005m.
Michael Pram Rasmussen, LLM and CEO of Topdanmark A/S is proposed for election to the Coloplast board of directors with a view to succeeding Palle Marcus as chairman of the board in 2006.
The company intends to continue to grow. Coloplast aims to be the market leader in all business areas, to be superior within innovation and to create increased value to capture new geographical markets. A specialised sales force will contribute to this objective, and the financial resources for investment in new markets and the sales drive will be provided ia from a global production strategy focusing on large-scale operations.

Coloplast's new map

Coloplast will split the sales organisation into 5 regions: Northern Europe, Central Europe, Southern Europe, the Americas and Asia-Pacific. The sales organisation will be simplified, and the five regions will be managed from the subsidiaries in Great Britain, Germany, France, the USA and Japan.

Global Operations is the name of the global manufacturing unit which will be responsible for all production output to the five sales regions. Global Operations will also be in charge of logistics, machine design and construction and technical maintenance.
"Towards 2012 we will become more global and less Danish. Coloplast's growth in Europe during the last 50 years must continue on a global basis if we are to create - also in future - the value expected by our shareholders", says Sten Scheibye.
A large part of the manufacturing activities will be located in Hungary and China at the expense of Denmark, resulting in a reduction of salaried employees in Denmark due to a simplification on the organisation.
The improved efficiency in operations, processes and administration as well as economies of scale will make investment increases possible in R&D, innovation and sales and marketing.
Coloplast will gather the wound and skin care strategic business units in the Wound and Skin Care Division. The new wound and skin care division will, together with the ostomy and continence care divisions, form a global matrix organisation in which sales and marketing is handled in the subsidiaries in the regions, while research, product development and business development is handled by the divisions.