Overall objectives
- Build a leading global group in the market for medical devices
- Strengthen our offering and our expertise
- Surpass market growth in selected segments
- Combine organic growth with acquisitions
- Continuously increase the proportion of our own products and services.
Financial targets
- Achieve long term annual growth in excess of 10 percent for the Group.
- Achieve long term profitability of an operating margin in excess of 13 percent.
- Achieve share of own product in excess of 13 percent.
- Net sales including acquisitions of 1 000 MSEK
Definitions of key performance indicators
| Term | Description | Usage |
|---|---|---|
| Total assets | The value of all assets | Relevant for enabling stakeholders to easily follow changes in consolidated total assets |
| Yield | Dividend in relation to share price at balance sheet date | Relevant for providing a measure of the return generated by an equity investment in the form of dividends |
| Equity per share | Equity attributable to shareholders parent company’s divided by the number of outstanding shares at the end of the period | A measure of the amount of equity that belongs to the shareholders of the parent company |
| Risk-bearing capital | The total of the reported amount of equity, any minority interests and deferred tax liability | Relevant from a credit point of view, and is one component showing the ability to sustain losses |
| Share of risk-bearing capital | Risk-bearing capital as a percentage of total assets | Relevant from a credit point of view, shows the ability to sustain losses |
| Liquidity reserve | Cash and cash equivalents and undrawn bank overdraft facilities at the end of the period | Relevant for assessing the ability to finance future operations as well as variations in the company’s cash flow |
| Net debt | Interest-bearing liabilities and interest-bearing provisions (provisions for pensions) less for cash and cash equivalents | Relevant for assessing the total interest-bearing debt burden |
| Net sales adjusted for currency translation | Changes in net sales adjusted for changes in exchange rates attributable to translation of subsidiaries compared with the same period last year | Relevant for assessing the change in net sales compared with previous year |
| Operating capital | Total assets as stated in the balance sheet less non-interest-bearing liabilities, non-interest-bearing provisions, interest-bearing non-current receivables and cash and cash equivalents | Capital tied up in the business |
| Return on operating capital | Operating profit as a percentage of average operating capital | Relevant for assessing the return on capital tied up in the business |
| Earnings after tax per share | Profit for the period divided by the average number of shares | Relevant for enabling investors to assess the return on and the valuation of the shares |
| Operating profit (EBIT) | Operating profit before tax and financial items | Relevant as a measure of the results of the company’s operating activities |
| Operating margin (EBIT %) | Operating profit as a percentage of net sales | Relevant for assessing the proportion of revenue retained as profit from operating activities. Can also be used for comparisons between companies |
| Operating profit before depreciation and amortization (EBITDA) | Operating profit before scheduled depreciation and amortization, and impairment | Relevant as a measure of the business’s ability to generate cash flow before tied up working capital and financial activities |
| EBITDA margin | Operating profit before scheduled depreciation and amortization, and impairment, as a percentage of net sales for the year | Relevant as a measure of the business’s ability to generate cash flow in relation to net sales |
| Debt/equity ratio | Net debt divided by equity | Relevant for assessing the capital structure, the ratio between equity and debt |
| Equity ratio | Equity including any minority interests as a percentage of total assets | Relevant as a measure of self-financing, as it shows the proportion of assets financed by equity |
