ICA Gruppen is one of the Nordic region’s leading retail companies with a clear strategy for profitable growth. The Group’s financial targets are intended to ensure that ICA Gruppen provides shareholder value over time and reflect the Group’s focus on the stable grocery market.

The Board of ICA Gruppen has adopted the following long-term
financial targets for the Group.

Target	Actual R12, 31 December 2018		Long-term
Grow faster than the market*	Sweden Baltics  Pharmacy		All markets
EBIT margin excluding non-recurring items**	4.0%		4.5%
ROCE***	10.2%		7.5%
Net debt/EBITDA****	0.8x		<3.0x
Proposed dividend for 2018 (% profit for the year)	63%		>50%

 
*Swedish growth based on latest definitive market data Q3, 2018
**The changeover to IFRS 15 entails a new determination that ICA Gruppen acts as a principal and not as an agent in a few contracts, which has an effect on the EBIT margin.
***Excluding ICA Bank.
****Interest-bearing liabilities excluding pensions and ICA Bank minus cash and cash equivalents in relation to EBITDA, operating income before depreciation and impairment.

Definitions

 
EBIT margin excluding non-recurring items
Operating profit as a percentage of net sales. Non-recurring items are gain/loss on disposal of non-current assets, impairment of non-current assets as well as major structural changes.

Return on capital employed
Profit after financial income in relation to average capital employed. ICA Bank’s operations are excluded from both the income statement and balance sheet when calculating return on capital employed. ICA Bank’s liquid assets are due to bank regulations not disposable for the Group which is why ICA Bank is excluded.

Net debt/EBITDA
Interest-bearing liabilities excluding pensions and ICA Bank minus cash and cash equivalents in relation to EBITDA, operating income before depreciation and impairment.