New financial targets from Vattenfall’s owner
Vattenfall's owner, the Swedish state, announces new proposed financial targets for the company. The new targets will be decided at an Extraordinary General Meeting on 28 November 2012.
Capital structure: Vattenfall is to have two targets for its capital structure:
• Debt/equity ratio of 50–90 per cent (financial net debt/equity)
• FFO/adjusted net debt of 22–30 per cent (funds from operations/adjusted net debt)
Current capital structure target:
• Long-term credit rating in the “single A” category from both Moody’s and Standard & Poor’s.
• Cash flow interest coverage after maintenance investments of 3.5–4.5 times.
• Return on capital employed of 9 per cent (operating profit/average capital employed)
Current profitability target:
• Return on Equity (RoE) of 15 per cent
• The dividend should amount to 40–60 per cent of the year’s profit after tax, entailing that Vattenfall will retain its current dividend policy
Vattenfall discloses this information pursuant to the Swedish Securities Market Act.
For further information, please contact:
Mikael Petrovic Wågmark, Head of Media Relations Sweden, +46 72 500 95 80
From Vattenfall’s Press Office, telephone: +46 8 739 50 10.