New financial targets from Vattenfall’s owner

Vattenfall's owner, the Swedish state, announces new proposed financial targets for the company. The new targets will be decided at an extraordinary general meeting on 12 December 2017.

Vattenfall’s financial targets relate to profitability, capital structure and the dividend policy, intending to ensure value creation and a market rate of return. The current targets were set in November 2012.

The energy sector transformation has continued since 2012, whilst electricity prices have remained at historically low levels. Vattenfall has moreover shifted focus to fossil free energy production, in line with the new company strategy to power climate smarter living and becoming fossil free within one generation.

The proposal for new financial targets (current targets within brackets):

Capital structure:
FFO/adjusted net debt of 22–27 per cent (22-30).
Net debt/equity ratio is removed (50-90 per cent).

Profitability target:
Return on capital employed of 8 per cent (9).

Dividend policy :
The dividend should amount to 40–70 per cent of profit after tax (40-60).

Link to information about extraordinary general meeting  

For further information, please contact:
From Vattenfall’s Press Office
Telephone: +46 8 739 50 10
e-mail: [email protected]

This information is such that Vattenfall is required to make public in accordance with the EU Market Abuse Regulation and/or the Swedish Securities Market Act. The information was submitted for publication, by the agency of the contact persons above, at 06.00 CET on 20 November 2017.

Vattenfall is a Swedish, state owned energy company with around 20,000 employees with operations in Sweden, Germany, the
Netherlands, Denmark, UK and Finland. Vattenfall focuses on growth in business areas that drive the transition to a renewable energy system and has the objective to become leading in sustainable energy production and thereby secure a reliable and cost effective energy supply.

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About the Author: Carrie Brunner

Carrie Brunner grew up in a small town in northern New Brunswick. She studied chemistry in college, graduated, and married her husband one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children. Carrie writes mostly on provincial stories.
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