Definitions
Earnings per share
Profit/loss for the year attributable to equity holders of the Parent Company divided by the average number of shares outstanding during the year.
EBIT
Earnings before interest and taxes. Corresponds to operating profit.
Adjusted EBIT
Earnings before interest and taxes adjusted for items affecting comparability. Corresponds to adjusted operating profit.
Equity ratio
Total equity in relation to total capital.
Net debt/equity ratio
Interest-bearing current and non-current debts, including net pension liabilities, less cash and cash equivalents divided by total equity.
Rate of capital turnover
Revenues for the last quarter annualized divided by average total capital.
Working capital
Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, excluding tax assets and liabilities and provisions.
Relative working capital
Average working capital for the last four quarters, divided by revenues in the last twelve months.
Return on capital employed
Operating profit/loss plus financial income, as a percentage of a four quarter average capital employed. Capital employed is defined as total capital less current non-interest bearing debt.
Return on total equity
Consolidated net profit/loss for the year as a percentage of average total equity during the year.
Return on total capital
Operating profit/loss plus financial income, as a percentage of four quarter average total capital.
Order intake
Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.
Total recordable injury frequency rate (TRIFR)
Total number of injuries per million worked hours.
Lost time injury frequency rate (LTIFR)
Number of lost time injuries per million worked hours.
Items affecting comparability
Items with a significant impact on Group or Business Area results from gains and losses on business disposals, restructuring and impairments costs.
Financial targets
Financial targets for the Sandvik Group; excluding discontinued operations and including Sandvik Materials Technology unless otherwise stated.
Growth ≥5 percent
Target to be achieved through both organic and acquired growth.
- Target through the economic cycle
- Organic revenue growth
- M&A (disposals and acquisitions)
EBIT margin – trough ≥16 percent
Trough = lowest level through an economic cycle.
- 12 month rolling
- Excluding items impacting comparability
- Excluding metal prices effects in Sandvik Materials Technology
Dividend pay-out ratio 50 percent
- Target through the economic cycle
- Excluding items impacting comparability
Net gearing, net debt/equity <0.5
Net debt to equity ratio, including discontinued operations
- Annual target, excluding transformational M&A
- Including pension liabilities and impact from adaption of IFRS16 leases