AMBITIOUS GROWTH TARGETS As we have seen in the last two quarters, our network of commercial executives remain optimistic regarding their growth ambitions for the next 12 months. The vast majority, 92% of commercial executives, expect to grow their top line. 86% also expect to grow their EBIT. Average growth ambitions for revenue are 13% and 19% for EBIT. Figure 1 – Growth ambitions regarding revenue and EBIT REVENUE (%) Valcon’s Sustainable Growth Line 100 90 80 70 60 50 40 30 20 BtB 10 BtC BtG 0 -10 -10 0 10 20 30 40 50 60 70 80 90 100 EBIT (%) This indicates that our network of commercial executives remain both ambitious and optimistic. The business-to-business commercial executives in our network are expecting their businesses to become even more profitable than last quarter with an average growth ambition on EBIT of 21%. This could indicate a group of commercial executives that are able to scale their business without being challenged or stalled by increasing labour or production costs, which is often the case in a booming economy. For us, that is exactly what good looks like: When a business is able to sustain growth by balancing costs and investment levels with top-line growth. However, as illustrated in figure 2 on page 5, our network of commercial executives expect to grow their EBIT more than their top line. If our group of commercial executives constitutes a representative sample group, the extraordinary EBIT growth could indicate a lack of re-investment in new growth areas, and hence, a risk of decline in the longer term. 4
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