Financial targets and outcomes

Boy with a kite (photo)

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)

Adjusted return on capital employed (line chart)Adjusted return on capital employed (line chart)

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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