Financial targets

Organic growth 3 - 4% per year

 BillerudKorsnäs goal is to grow faster than the market for packaging paper and board1.

 1 Estimated demand CAGR 2013-2025 for combined market for cartonboard, containerboard and sack paper is 2.2%. Source: Pöyry 2014

Outcome 2016
The organic growth for comparable units for 2016 was 0.3%, compared with 5% the previous year.

The target was not reached despite record production and sales volumes, primarily due to disruptions to production and supply  

EBITDA margin > 17%

The EBITDA margin should exceed 17%.

Outcome 2016
The EBITDA margin was 17% in 2016, compared with 18% the previous year.

Excluding restructuring costs related to the investment in Gruvön, the target was achieved. The results for 2015 were affected by the capital gain from the disposal of Latgran.  

Return on capital employed > 13% 

The return on capital employed should exceed 13%. BillerudKorsnäs shall ensure a return corresponding to the shareholders’ return expectations while the cost of the company’s debt is covered with a margin.

Outcome 2016
Return on capital employed was 12% in 2016, compared with 15% the previous year.

Excluding restructuring costs related to the investment in Gruvön, the target was achieved. The results for 2015 were affected by the capital gain from the disposal of Latgran.

 

Net debt/EBITDA ratio < 2.5

Interest-bearing net debt in relation to EBITDA should be below 2.5.

Outcome 2016
The net debt/EBITDA ratio at the end of 2016 was 1.1, compared with 1.2 at the end of previous year.

The target was reached, in part due to lower interest-bearing net debt.

 

Dividend policy 50% of net profit

The dividend should amount to 50% of net profit. The dividend paid to shareholders will be dependent on, among other factors, BillerudKorsnäs’ profit level, financial position and future development opportunities.

Outcome 2016
The Board’s proposal at the 2017 AGM is for a dividend per share of SEK 4.30, which equates to a dividend payout ratio of approximately 59%.

Last updated: 2016-04-26