Financial goals - margin recovery is the priority
The Group’s long-term financial goals were defined in connection with the stock exchange listing in 2006.
As a consequence of the medium-term priority to improve the operating margin, the sales growth target was removed in 2013. Dividend and capital structure targets were reached in 2015. The operating margin, excluding items affecting comparability, improved to 8,2 percent from 7,2 percent, despite significant margin dilution due to changes in exchange rates.
Long-term financial goals:
- Operating margin of more than 10% over the course of a business cycle.
- Capital structure should meet criteria for long-term credit rating corresponding to at least BBB. This is considered to require that seasonally adjusted net debt in relation to EBITDA should not exceed a multiple of 2,5 in the long term.
- The dividend shall normally exceed 40% of income for the year.
- Operating margin, excluding items affecting comparability, amounted to 8.2% in 2015.
- Average operating margin was 6.5% 2011-2015, and 7.6% 2006-2015, excluding items affecting comparability.
- Seasonally adjusted net debt/EBITDA was 1.7 at year-end 2015.
- The Board proposes a dividend for 2015 of SEK 1.65.
- The payout ratio for 2015 corresponds to 50% of income for the year.