SSAB’s strategy is aimed at securing the Company’s long-term development, thereby creating value for shareholders and other stakeholders. To support the strategy, SSAB has established a number of financial targets.
Profitability
Taking into consideration the equity ratio requirement and the dividend policy, the target for the return on capital employed is that it shall exceed 15 percent over a business cycle.
In 2009, the return on capital employed was negative (17 percent).
Capital structure
The Group’s operations are sensitive to the state of the economy. The objective is a long-term equity ratio of approximately 50 percent and a long term net debt/equity ratio of 30 percent.
As of December 31, 2009, the equity ratio was 51 (51) percent and the net debt/equity ratio was 49 (48) percent.
Dividends
Dividends shall be adapted to the average level of earnings over a business cycle and, in the long-term, constitute approximately 50 percent of profit after tax. In the short-term, however, the net debt/equity ratio must be taken into account. It shall also be possible to use dividends to adapt the capital structure.
The Board proposes a dividend for 2009 of SEK 1.00 (4.00) per share.