Financial Targets

Balco Group’s objective is to increase shareholder value, primarily through net asset value growth.

In order to clarify our strategy the Board of Directors has decided to communicate financial targets. These reflect Balco Group’s evaluation of its balance sheet structure and the return targets on the portfolio companies.

Growth

Balco Group's net sales shall on average grow by 10 percent annually during a business cycle.

Capital structure

Balco Group’s net interest-bearing debt shall not exceed 2.5 times operating profit before depreciation and amortisation (EBITDA), other than temporarily.

Profitability

Earnings per share shall on average grow by 20 percent annually over a business cycle.

Dividend policy

Balco Group shall distribute 30-50 percent of profits after tax, taking into consideration needs for Balco’s long-term growth and prevailing market conditions.