Financial targets and target achievement

Average sales growth

Financial target: Average sales growth shall amount to a minimum of 10% per year over a business cycle. Growth is to be achieved organically as well as through acquisitions.

Target achievement: During the last five-year period, average annual sales growth was 12%. Net sales in 2017 rose 15%. For comparable units, the increase was 5% while acquired growth was 9%. The currency effect in 2017 was 1%.

EBITA margin

Financial target: The target EBITA margin is a minimum of 12% per year over a business cycle.
 
Target achievement: The average EBITA margin during the last five years was 11.4%. The EBITA margin in 2017 was 10.9%.

Return on operating capital

Financial target: Return on operating capital should be a minimum of 20% per year over a business cycle. 

Target achievement: During the last five years, the average return on operating capital was 20%. In 2017 the return was 19%.

Net debt/equity ratio

Financial target: Net debt/equity ratio should normally not exceed 100%.

Target achievement: During the last five years, the net debt/ equity ratio varied between 74% and 88% at the end of each year. The net debt/equity ratio at year-end 2017 was 74%.

Dividend payout ratio

Financial target: Dividend payout ratio should amount in the range of 30% and 60% of net profit. 

Target achievement: During the last five years dividend pay-out was 43% including the proposed dividend. For 2017 a dividend of SEK 3.75 has been proposed, corresponding to 44% of net profit.