Objectives, policies and processes for managing capital
Alfa Laval defines its managed capital as the sum of consolidated net debt and equity including the part that is attributable to non-controlling interests. At the end of 2024 the managed capital was SEK 47,775 (47,389) million.
The Group’s objective when managing capital is to safeguard the Group’s ability to continue as a going concern and provide an adequate return for shareholders and benefits for other stakeholders.
When managing the capital, the Group monitors several measures including:
| Mätvärden | ||||||||||
| Mål | Riktvärden | Riktvärden inte satta | Utfall | Genomsnitt över senaste | ||||||
| 2024 | 2023 | 3 år | 5 år | 8 år | ||||||
| Measure | ||||||||||
| Goal | Target standard | Target not set | Outcome | Average over last | ||||||
| 2024 | 2023 | 3 years | 5 years | 8 years | ||||||
| Faktureringstillväxt per år | Invoicing growth per year | ≥5% * | 5.3% | 22.0% | 18.2% | 8.5% | 8.9% | |||
| Justerad EBITA-marginal ** | Adjusted EBITA margin ** | 15% * | 16.6% | 16.1% | 16.1% | 16.6% | 16.6% | |||
| Avkastning på sysselsatt kapital ** | Return on capital employed ** | ≥20% | 23.2% | 21.0% | 20.5% | 20.1% | 20.5% | |||
| Nettoskuld jämfört med EBITDA ** | Net debt to EBITDA ** | ≤2.0 | 0.43 | 0.85 | 0.92 | 0.82 | 0.90 | |||
| Kassaflöde från rörelseverksamheten inklusive investeringar i anläggningstillgångar *** | Cash flow from operating activities including investments in fixed assets *** | 10% | 13.2% | 10.6% | 8.9% | 10.4% | 9.9% | |||
| Investeringar *** | Investments *** | X | 5.0% | 3.8% | 4.1% | 3.7% | 3.4% | |||
| Avkastning på eget kapital | Return on equity | X | 18.8% | 17.6% | 16.6% | 15.7% | 16.7% | |||
| Soliditet | Solidity | X | 47.6% | 45.4% | 45.6% | 47.0% | 44.7% | |||
| Skuldsättningsgrad ** | Debt ratio ** | X | 0.13 | 0.27 | 25.7% | 22.4% | 26.4% | |||
| Räntetäckningsgrad ** | Interest coverage ratio ** | X | 26.2 | 23.1 | 25.7 | 28.6 | 30.4 | |||
| Kreditvärdering | Credit rating | X | BBB+ | BBB+ | ||||||
* Average over a business cycle. ** Alternative performance measures. *** In % of sales.
In order to maintain a good capital structure, the Group may for instance raise new loans or amortize on existing loans, adjust the amount of dividends paid to shareholders, return capital to shareholders, repurchase own shares, issue new shares or sell assets.
As examples on the Group’s active work with managing its capital the following can be mentioned:
- During 2022 Alfa Laval raised two loans of EUR 100 million from Svensk Exportkredit that matures in May 2027 and May 2028 respectively.
- The company has established a Euro Medium Term Note (EMTN) programme with a framework amount of EUR 2,000 million. Under the programme, four tranches of corporate bonds have been issued. One of EUR 300 million was issued in June 2019 and was repaid on June 25, 2024. Two of them of EUR 300 million each were issued in February 2022 and mature in February 2026 and in February 2029 respectively, whereas the fourth of SEK 1,000 million was issued in May 2023 and matures in November 2025.
- The company also has a commercial paper programme with a framework amount of SEK 4,000 million. The commercial papers are issued with short maturities, usually between 1-12 months. In June 2024, commercial papers of SEK 1,330 million were issued. These were repaid over a period from August until October 2024.
- In addition, the company has a revolving credit facility of EUR 700 million with a banking syndicate with an option to increase by an additional EUR 200 million. The credit facility matures in April 2028.