To pursue a proactive strategy while balancing operational risk, SkiStar must have a strong financial base.
The target is an equity ratio of at least 35 percent. At current interest rates, the target for return on equity is 14 percent and for return on capital employed, 9 percent. These targets are based on 3-month treasury bills, which had an average interest rate of -0.69 percent (-0.76) during the 2017/18 financial year.
The operating margin target is to exceed 22 percent in the long term.
SkiStar’s growth target is an annual organic growth rate exceeding inflation by at least 4 percentage points, on top of any growth through acquisitions. Inflation in Sweden during the financial year was 2.0 percent (1.6).
The overall goal is to increase the value of our shareholders’ capital. SkiStar’s share price increased by 8 percent during the 2017/18 financial year. The Stockholm Stock Exchange All-Share index (OMXS) fell by 7 percent over the same period. A dividend of SEK 7.00 (5.50) is proposed. All financial targets have been achieved. Target achievement figures are shown in more detail in the schedule below.
Target achievement, financial targets
|Outcome 2017/18||Target 2017/18||Outcome 2016/17||Outcome 2015/16|
|Equity/assets ratio, %||50||>35||46||46|
|Return on capital employed, %||17||9||14||13|
|Return on equity, %||22||14||20||17|
|Operating margin, %||24||22||22||22|
|Organic growth above inflation, %||8||4||14||6|