Fortum updates its long-term financial targets
FORTUM CORPORATION STOCK EXCHANGE RELEASE 13 March 2015 at 17.35 EET
Fortum has updated its long-term financial targets. The new financial targets reflect better the company’s business mix after the divestment of the distribution business, and give relevant guidance of Fortum's view on the company's long-term value creation potential and growth strategy.
The updated long- term financial targets are:
- Return on Capital Employed (ROCE) 12%
- Comparable Net Debt/EBITDA around 2.5 times
The previous financial targets in place until today were ROCE 12%, Comparable Net Debt / EBITDA around 3 and Return on Shareholders' Equity (ROE) 14%.
“The divestment of our distribution assets presented an opportune time to update the financial targets so that they better describe the future Fortum. After the sale, Fortum's business has somewhat higher business risk profile, which will correspondingly require a stronger balance sheet in order to maintain financial flexibility. The financial targets continue to reflect the long term business nature of the company,” comments Timo Karttinen, Interim President and CEO of the company.
Fortum’s dividend policy remains unchanged. Fortum Corporation's target is to pay a stable, sustainable and over time increasing dividend of 50-80% of earnings per share excluding one-off items.
Senior Vice President, Corporate Communications
Timo Karttinen, Interim President and CEO, tel. +358 10 45 36555
Sophie Jolly, Vice President, Investor Relations, tel. +358 10 45 32552
Fortum’s purpose is to create energy that improves life for present and future generations. Catering to the versatile needs of our customers, we generate, distribute and sell electricity and heat, and offer related expert services. Our operations focus on the Nordic and Baltic countries, Russia and Poland. In 2014, Fortum’s sales totalled EUR 4.75 billion and comparable operating profit was EUR 1.35 billion. We employ approximately 8,800 people. Fortum’s shares are traded on the Nasdaq Helsinki. http://www.fortum.com