FINANCIAL TARGETS AND OUTCOMES OUR FINANCIAL TARGETS AND OUTCOMES The Board of Directors has adopted new financial targets for the Group and decided on a new dividend policy. These longterm targets ensure that the Group has a sound control system in place with respect to favourable earnings and a healthy financial risk. The financial targets should also reflect the structure of AR Packaging’s three divisions and its growth strategy. Sales Growth Target >20% Outcome 0.9% AR Packaging increased its sales, including the acquired European operations of MeadWestvaco Corporation, with 27.0% compared to 2014. EBIT margin Target margin >9% Outcome 7.1% The cost-efficiency programmes implemented during the past years have resulted in improved earnings for the Group. In addition, the acquisition of the European operations of MWV in the beginning of 2015 created synergies with respect to both revenues and costs. Better utilisation of the sale resources and optimisation of the joint production capacity had a positive effect on the operating margin. EBIT margin adjusted for non-recurring item was 8.7% in 2015. Debt leverage Target net debt/EBITDA 2x Outcome 1.7x AR Packaging increased its net debt from 87 MEUR to 106 MEUR for the financing of the acquisition from MeadWestvaco Corporation, mainly through a subsequent issue of bonds and bank loans. At the same time EBITDA improved due to a strong cash flow, which enabled the Group to maintain its gearing ratio. Dividend policy According to the new long-term dividend policy, the Board intends to propose a dividend of 40-60% of net profit. Any decisions regarding dividends and the size of the dividends have to take into account the Group’s plans for expansion and potential acquisitions. At present, no dividend can be paid according to the terms of the bond issue for the Group.