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 14%. Net sales rose 13% in 2018. For comparable units, the increase was 4%, while acquired growth was 7% and divestments were –2%. The currency effect was 4%.

EBITA margin

Financial target: In November 2018 the target for the EBITA margin changed to a minimum of 12% (previously 10 %) per year over a business cycle.
 
Target achievement: The EBITA margin has averaged 11.7% over the last five years. The EBITA margin in 2018 was 12.4%.

Return on operating capital

Financial target: The return on operating capital shall be a minimum of 20% per year on average over a business cycle.

Target achievement: During the last five years the average return on operating capital was 21%. In 2018 the return was 21%.

Net debt/equity ratio

Financial target: The net debt/equity ratio shall normally not exceed 100%.

Target achievement: During the last five years the net debt/equity ratio at the end of the respective year ranged from 63% to 82%. The net debt/equity ratio at year-end 2018 was 63%.

Dividend payout ratio

Financial target: The dividend payout ratio shall range from 30% to 60% of net profit.

Target achievement: During the last five years the average dividend payout ratio was 42% including the proposed dividend. For 2018 a dividend of SEK 4.50 has been proposed, corresponding to 40%