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Financial targets

Storskogen’s board of directors has adopted a set of financial targets linked to Storskogen’s growth strategy:

EBITA growth

  • 2021 is forecasted to show strong growth, driven by both organic
    performance and pace of acquisitions.
  • Storskogen intends to continue its M&A strategy and to maintain
    growth levels in line with historical performance. Acquisitions are
    the foremost drivers for growth and will be funded through
    cash generation and future debt issuance in accordance with
    Storskogen’s capital structure policy. In the event of significant
    M&A activity, driven by the availability of attractive target companies,
    Storskogen may use potential future equity issuances to accelerate
    growth to the extent market conditions are favorable.
  • Organic EBITA growth1) after 2021 is expected to be in line with
    real GDP growth in the markets in which Storskogen is active, plus
    1–2 percentage points, and is expected to be driven
    by the operational performance of the group companies and higher
    growth contributions from group companies outside of Sweden.

EBITA margin

  • Storskogen’s target is to maintain an EBITA margin2) of
    approximately ten (10) per cent on average in line with the historical
    performance of Storskogen’s diversified portfolio of
    profitable and stable businesses.
Adjusted cash conversion 
  • Storskogen’s target is to achieve an adjusted cash conversion3)
    of more than 70 per cent, calculated based on the last twelve
    months, with low average capital requirements within the Group
    and a strong focus on cash generation.
Leverage
  • Storskogen aims to invest its cash flow in organic growth initiatives
    and acquisitions while maintaining a responsible capital structure.
    Storskogen’s target is that the Net debt to Adjusted RTM EBITDA4) 
    ratio of 2.0–3.0x. Depending on timing of acquisitions, leverage
    may temporarily exceed 3.0x but is not expected to exceed 3.5x.
Dividend policy
  • Storskogen’s board has adopted a dividend policy of dividends
    corresponding to 0–20 per cent of profit for the year.

1) Calculated as change in EBITA, excluding acquisition and divestment related effects, compared to the corresponding period in the previous year.
2) Calculated as EBITA as a percentage of net sales.
3) Calculated as Operating cash flow as a percentage of Adjusted EBITDA.
4) Calculated as Net debt compared to Adjusted RTM EBITDA.