Financial targets

To support BillerudKorsnäs’ target for profitable growth and a good return for shareholders, the company has established five financial targets.

The long-term growth target is 3–4% per year. For 2020 the target was not reached, mainly due to challenging market conditions. Net sales declined by 2%. Currency effects did not have material impact. 

Year Percent
2018: 6% 6
2019: 3% 3
2020: -2% -2
3
Target 3-4%
-2
Outcome -2%

The EBITDA margin target of 17% has not been achieved during the last three years. During this period earnings have been negatively affected by the new board machine at Gruvön. In 2020 the profitability was also impacted by lower market prices. 

Year Percent
2018: 12% 12
2019: 12% 12
2020: 11% 11
17
Target >17%
11
Outcome 11%

Return on capital employed (ROCE) should exceed 13%. The target has not been reached during the last three years, primarily due to large investments at the Gruvön mill. 

Year Percent
2018: 7% 7
2019: 4% 4
2020: 3% 3
13
Target >13%
3
Outcome 3%

Interest-bearing net debt to EBITDA shall be less than 2.5. The target was reached in 2020. The sale of Bergvik Skog Öst in 2019 strengthened the financial position substantially. 

Yeae Interest-bearing net debt/EBITDA
2018: 3,2 3.2
2019: 1,9 1.9
2020: 2,0 2.0
2.5
Target < 2.5
2.0
Outcome 2.0

The dividend shall amount to 50% of net profit. For 2020 a dividend that is exceeding this target is proposed. The proposed dividend of SEK 4.30 per share is the same amount as the dividends for 2018 and 2019.  

Year Percent
2018: 86% 86
2019: 13% 13
2020: 135% 135
50
Target 50%
135
Outcome: 135%