CORRECTION: Eltek ASA: Outlines strategy and financial targets 2014-2018 at Capital Markets Day

This is a correction of the announcement from 08:00 09.09.2014 CEST.

(Drammen, 9 September 2014): Eltek is today hosting a Capital Markets Day at which the company's strategy, technological roadmap and financial targets are presented.

A key part of the company's strategy is ONE Eltek, the ambitious operational improvement program launched in February 2014.

Highlights:

Revenue target of NOK 5.8 billion in 2018, compared to NOK 3.7 billion in 2013, representing a compound annual growth rate of 10 percent.Growth expected across all markets and segments, with particularly strong growth rates within Industrial applications and Data centers.Identified potential bottom line improvements of NOK 300 million from ONE Eltek, of which NOK 50 million in 2015.   EBIT margin target of 12 percent in 2018, compared to 8 percent in 2013.Introducing Eltek's next technological breakthrough: The Rectiverter(TM)

             
"Over the last few years, Eltek has grown sales, while at the same time divesting non-core businesses, streamlining operations and improving margins. We now have a solid foundation and have concluded a thorough strategy process with ambitions but realistic targets," said Colin Howe, Chief Executive Officer of Eltek.

The strategy presented at today's Capital Markets Day is focusing on profitable growth based on Eltek's core strengths. Opportunities are seen within telecom, for instance in small cells needed to increase data capacity in urban mobile networks and in hybrid solutions utilizing renewable energy.

Further, based on economies of scale from the telecom market, Eltek sees growth opportunities by applying the same basic technology within certain industries, namely power utilities, railway and metro, and marine and offshore, as well as in the rapidly growing data center market.

Growth will be combined with further margin improvements. The ONE Eltek program is the most comprehensive business transformation program ever undertaken by the company. It is based on a thorough analysis of every aspect of Eltek's business, and potential for improvement has been identified primarily within two areas, namely strategic sourcing and complexity reduction.

In order to maintain its position as technology leader, Eltek is continuing to invest in research and development. Today Eltek is presenting its next big innovation, the Rectiverter(TM). This is a combination of a rectifier, which converts AC to DC, and an inverter, which converts DC to AC. This bidirectional device is a key component of tomorrow's smarter energy grids.

"The technology roadmap outlined today will solidify our position as the undisputed technology leader within our core business, while ONE Eltek will take the ongoing operational improvements to a new level," said Howe.

The CMD presentation is attached.

For further information, please contact:
CEO Colin Howe, +44 776 846 6446
CFO Björn Wigström, +47 905 31 304

About Eltek:

Eltek is a strategic technology partner for power solutions. The company reported revenue of NOK 3.7 billion in 2013, and has approximately 2,400 employees and operations in almost 40 countries. The company focuses on power electronics markets, where it is one of the leaders in telecom power and a growing force within industrial applications. Eltek is also pursuing growth opportunities within the data center market. Eltek is listed on Oslo Stock Exchange (ELT:Oslo) and headquartered in Drammen, Norway.

This information is subject of the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Capital Markets Day September 2014


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Source: Eltek ASA via Globenewswire
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