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
The organic growth for 2017 was 3.2%, compared with 0.3% the previous year.
EBITDA margin > 17%
The EBITDA margin should exceed 17%.
The EBITDA margin was 17% in 2017, which was in line with the previous year.
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.
Return on capital employed was 12% in 2017, which was in line with the previous year.
Excluding non-recurring costs related to the investments in Gruvön and Skärblacka, the return on capital employed was 13%, compared to 14% the previous year.
Net debt/EBITDA ratio < 2.5
Interest-bearing net debt in relation to EBITDA should be below 2.5.
The net debt/EBITDA ratio at the end of 2017 was 1.53, compared with 1.08 at the end of previous year.
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.
The Board of Directors will propose the 2018 AGM to resolve to distribute dividend of SEK 4.30 per share to shareholders. The dividend equates to a dividend payout ratio of approximately 54% of net profit 2017.