Goals and outcomes
Financial targets
Alfa Laval aims to realize its business purpose, while at the same time meet its financial targets established with regard to growth, profitability and capital utilization. By achieving or exceeding these targets, Alfa Laval creates the necessary scope for its continued favourable development as well as generating increased value for its shareholders in the form of an annual dividend and by boosting the value of the company.
Goal
5%
Growth
Alfa Laval’s goal is to achieve average annual sales growth of at least 5 percent measured over a business cycle. The target was set in light of the longer-term demand trends for Alfa Laval’s key technologies, the prevailing business scenario and against the backdrop of Alfa Laval’s achievements in recent years.
Outcome 2022
27%
Goal
15%
Profitability
Alfa Laval is to achieve an operating margin – adjusted EBITA – of 15 percent measured over a business cycle. This target was established based on the company’s ambitions for growth, investments and portfolio development, while also taking historical margins into consideration.
Outcome 2022
15.8%
Goal
20%
Capital utilization
The goal is to have a return on capital employed of at least 20 percent. The target reflects the company’s ambition to optimize the capital utilization by balancing investments and operating working capital.
Outcome 2022
17.3%
Sustainability targets
Alfa Laval’s environmental and social targets aim to drive efficiency and behavioural change to achieve better results in the long term. The below table contains a selection of the company’s sustainability targets.