Financial targets

The table below presents the Group’s updated financial targets. The previous profitability metric adjusted EBITDA was converted to adjusted EBITA. The level of ambition in profitability remained unchanged. The growth targets were updated.

Financial targets (updated November 2019)

Cash conversion Operating cash flow before financial and tax items / EBITDA  > 100%
Profitability Adjusted EBITA* > 5.5% of revenue
Debt leverage Net debt/EBITDA** < 2.5x
Organic revenue growth  > 4% p.a. over the cycle
Supported by bolt-on acquisitions in selected growth areas and complementary capabilities.
Services revenue growth > market growth
Services revenue > 2/3 of Group revenue
Dividend policy Distribute at least 50% of the result for the year after taxes, however, taking profitability and leverage level into account

* EBITA is defined as Operating profit + amortisation and impairment on intangible assets. Adjustments according to defined Items affecting comparability (IAC).
** Based on calculation principles confirmed with the lending parties. The confirmed calculation principles currently exclude the effects of the IFRS 16 standard and contain certain adjustments.

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