• Go To Market strategy
• DLH organisation
• Targets for 2014
• DLH values

DLH is looking into an exciting but demanding change. It is demanding because:

• There are a lot of things to be done in the years to come
• DLH is under time pressure and a succesful turn–around should give the group the total freedom to act
• DLH is changing DNA from “the independents” to One Company

The next three years in brief
2010 will be focused on keeping the financial goals, divest companies, get the new organization to work and harvest some low hanging fruits in each unit and with regards to working capital.
2011 will be focused on Go To Market and more structural efforts to reduce working capital further. During 2011 DLH will also consider to implement more initiatives (lean, warehouse restructuring, transport optimization, IT etc.) that is not yet directly included in the strategy.

2012 will be offensive with more initiatives on the market side and a strong growth plan for the period after 2012 – after the group has become Back to Black.

The key initiatives

1. Divestment of production and forestry activities
During 2010 and 2011 DLH will divest all forestry and production activities including CIB – Congolaise Industrielle des Bois, GIB – Gabonaise Industrielle des Bois, Carl Ronnow (Malaysia) Sdn. Bhd., PW Hardwood in USA and I–DRY in Holland. This will be done to reduce debt and losses but also in order to focus the competencies on sales and supply. DLH is simply spread over a too large range of activities globally meaning that it is hard to be excellent in the many disciplines.

2. Reduction of working capital
During 2010 and 2011 DLH will reduce working capital (prepayments, stocks, debtors and creditors) considerably. The ambition is not “just” to reduce working capital but also to be much better at managing it in the future especially when the market rebounds. It is a two year programme. Working capital will be an integrated part of KPI’s, incentives and reporting. In the first part of 2010 DLH will focus on some “hot spots” in the organization holding the largest potential. Before summer 2010 DLH will have developed a blue print for our future set up and management of working capital in DLH.

3. Implementation of a new organization
The new more functional organization was initiated 1.1.2010 but there is still a way to go. Business plans are prepared for each of the units and they are to be implemented and will be revised twice a year. Reporting and controlling are enhanced. An organizational handbook is to be implemented outlining roles, KPI’s meeting structures etc. ensuring that everybody works in a structured way and uses the best practice across the organization. GPO (Global Procurement Office) will together with Hyperion (reporting) be rolled out in 2010 but further roll out of GTS is put on hold to focus the efforts on the sales and market issues.

4. Go To Market
The local initiatives will be supported by a group wide programme developing best practice competencies and methods regarding market development, sales management, sales, pricing and development of new products and services. One of the corner stones in this programme is regular Go To Market conferences where leaders meet and exchange practice and get inspired.