Financial targets

Ahlsell’s Board of Directors has adopted the following medium-term financial and other targets that form the overall basis for the business plan, which assume continued growth in the addressable distribution market in the Nordic region further accelerated by successful delivery of the Group’s organic growth initiatives and M&A activities as well as implementation of efficiency initiatives.

Sales Growth
Ahlsell’s target is to achieve 2–3 percentage points above market growth (main markets Sweden, Norway and Finland combined) through a combination of organic growth and M&A.

EBITA margin
Ahlsell continually and systematically targets to increase its adjusted EBITA margin.

Cash conversion
Ahlsell’s target is to achieve an annual cash conversion of c.90 percent. Cash conversion defined as operating cash flow/EBITDA.

Net debt/adjusted EBITDA
Ahlsell’s target is to have net debt in relation to adjusted EBITDA of 2.0–3.0 times. The capital structure should enable flexibility and allow the company to capture strategic opportunities while maintaining a solid financial position. Net debt in this regard excludes share holder loans and intercompany payables and receivables.

Dividend policy
Ahlsell’s target is to pay a dividend corresponding to 40–60 percent of net profit subject to strategic headroom. The dividend shall take into account acquisitions, the Company’s financial position, cash flow and future growth opportunities.

Ahlsell’s financial targets set forth above constitute forward-looking information that is subject to considerable uncertainty. The financial targets are based upon a number of assumptions relating to among other things, the development of Ahlsell’s industry, business, results of operations and financial condition as well as the assumptions referred to above. Ahlsell’s business, results of operations and financial condition, and the development of the industry and macroeconomic environment in which Ahlsell operates, may differ materially from, and be more negative than, those assumed by Ahlsell when preparing the financial targets set out above. As a result, Ahlsell’s ability to reach these financial targets is subject to uncertainties and contingencies, some of which are beyond its control, and no assurances can be given that Ahlsell will be able to reach these targets or that Ahlsell’s financial condition or results of operations will not be materially different from these financial targets.