Financial targets and outcomes
ORGANIC SALES GROWTH1)
Group
OUTCOME 2016
+2 %
Personal Care
TARGET
5–7%
OUTCOME 2016
+3%
Tissue
TARGET
3–4%
OUTCOME 2016
+3%
Forest Products
TARGET
Grow in line with the market
OUTCOME 2016
–3%
TARGET
SCA’s target for annual organic sales growth for Personal Care is 5–7%, while the target for Tissue is 3–4%. For Forest Products, the target is to grow in line with the market.
In 2016, the Group’s organic sales increased by 2%. Organic sales increased by 3% for Personal Care and 3% for Tissue. Organic sales in Forest Products decreased by 3%.
1) Excluding exchange rate effects, acquisitions and divestments.
CAPITAL STRUCTURE
TARGET
SCA’s target is to have an effective capital structure, while at the same time ensuring long-term access to loan financing. Cash flow in relation to net debt is to be taken into consideration in the target to maintain a solid investment grade rating.
OUTCOME 2016
SCA had a solid investment grade rating
RETURN ON CAPITAL EMPLOYED
Group
TARGET
13%
OUTCOME 20161)
12.5%
Personal Care
TARGET
30%
OUTCOME 20161)
31.8%
Tissue
TARGET
15%
OUTCOME 20161)
13.5%
Forest Products
TARGET
Top quartile of the industry
OUTCOME 20161)
5.7%
TARGET
Adjusted return on capital employed1)
1) Excluding items affecting comparability.
The Group’s overall profitability target is to achieve a return on capital employed of 13% over a business cycle. The target is 30% for Personal Care, 15% for Tissue and to be in the top quartile of the industry for Forest Products.
In 2016, the Group’s adjusted return on capital employed1) was 12.5%. The adjusted return on capital employed1) was 31.8% for Personal Care and 13.5% for Tissue. The adjusted return on capital employed1) for Forest Products was 5.7%.
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