Financial Objectives and Dividend Policy

The overall objective is to continue to create value for customers and shareholders. NCC has defined the following strategic objectives for the Group (excluding NCC Housing) for the 2016–2020 strategy period.

  • Operating margin ≥4%
  • Average annual sales growth 5%
  • Annual return on equity after tax ≥20%
  • Net indebtedness <2.5 times EBITDA
  • Equity/assets ratio ≥20%
  • Dividend policy
    as of the 2016 fiscal year, at least ≥40% of after-tax profit is to be distributed to shareholders.

Profitability and return objectives per Business Area

The following apply to the three business and business areas:

  • Industry (NCC Industry)
    is to achieve an operating margin of at least 4 percent and an average annual return on capital employed of at least 10 percent during the strategy period.
  • Construction and civil engineering (NCC Building and NCC Infrastructure)
    are to achieve an operating margin of at least 3.5 percent per year.

  • Development (NCC Property Development)
    is to achieve an operating margin of at least 10 percent and an average annual return on capital employed of at least 10 percent during the strategy period.