Targets and target fulfillment

Sandvik’s financial targets in the period 2016–2018 focused on improved operating profit, higher returns and a strengthening of the balance sheet, while maintaining a generous dividend policy.

Financial Targets1)

EBIT growth (CAGR)

To achieve an EBIT growth (CAGR) of 7 percent or more 2016–2018.



The EBIT1) growth (CAGR) for 2016–2018 was 19 percent, well above the target of 7 percent. The EBIT improvement was a result of favorable market conditions combined with a strong cost focus and active portfolio management.

EBIT in BSEK (bar chart)

ROCE improvement

To achieve a ROCE improvement of 3 percentage points or more 2016–2018.



The return on capital employed was 23 (24). The adjusted return on capital employed was 23 (19), a 9 percentage points increase since 2015. The favorable return on capital employed in 2018 was the result of a strong EBIT development coupled with a continuous focus on improving capital employed.

ROCE in % (bar chart)

Financial Targets1)

Net debit/equity ratio

To achieve a net debt/equity ratio below 0.8.



Net debt amounted to 12 billion SEK (16) at the end of the fourth quarter and the net pension liability was 6 billion SEK (5). The net debt to equity ratio year-end 2018 was reduced to 0.2 (0.3).

Net debt/equity ratio (line chart)

Divided payout ratio

To achieve a dividend payout ratio of 50 percent of reported earnings per share.



Sandvik’s strong performance in 2018 resulted in a proposed dividend of 5 billion SEK (4), corresponding to a payout ratio of 43 percent (44).

Dividend payout ratio, (line chart)

1) For further information with regard to target definitions see Key figures, Group total.

2) Proposed adjusted dividend payout ratio.

Sustainability Targets

Health and Safety3)

To achieve a Lost Time Injury Frequency Rate (LTIFR) of 1.4 and a Total Recordable Injury Frequency Rate (TRIFR) of 4.3.

Outcome 2018


The LTIFR amounted to 1.7 (1.6) and the TRIFR to 4.0 (4.6). The LTIFR increase was mainly due to an increase in low level lost time injuries (1–2 days lost).

Energy efficiency

To reduce the energy usage by 1.5 percent in 2018.

Outcome 2018


The energy usage was reduced by 1.7 percent during the year.

Sustainability Targets

Diversity and Inclusion

To increase the share of women in managerial positions by 3 percent annually. For 2018 the target was 17.6 percent.

Outcome 2018


The share of women in managerial positions increased to 17.7 percent (17.1), corresponding to a 3.5 percent increase.

Code of Conduct

To train 100 percent of employees, including longterm contractors, in our Code of Conduct.

Outcome 2018


94 percent (93) of employees and long-term contractors (longer than three months) were trained in the Code of Conduct.

For more environmental and social KPIs, see Sustainability notes.

3) LTIFR=Injuries resulting in lost time per million hours worked, TRIFR=total number of injuries per million hours worked.