The Group’s operations are very dependent on the business cycle. Individual investment projects within the steel operations may, in addition, be extremely large and thus the equity ratio should be relatively high. The goal is that the net debt/equity ratio shall amount to approx. 30% and the equity ratio to approx. 50%.

SSAB's Board of Directors has adopted a three-year plan of action the aim of which is to increase the Group's profitability and growth (communicated February 7, 2007).  The plan comprises three main areas: to accelerate growth in current niches, to increase profitability at current plants, and to strengthen and enhance the efficiency of the Group's organisation.  The plan of action also constitutes a basis for the Board's decision to increase the profitability target for the Group: the return on capital employed over a business cycle is to exceed 15%.  The new profitability target entails an increase of some 3% points compared with the previous target.

 

Dividends shall be adapted to the average profit level over a business cycle and, in the long-term, constitute approx. 50% of profit after tax. It shall also be possible to use dividends to adjust the capital structure.