Financial targets and dividend policy

Both financial and sustainability goals benefit our strategy for profitable, cashflow-generating growth. A responsible business with stable finances and efficient resource use is essential for Munters to carry out its strategy. In 2019, an analysis of the sustainability work was completed, including a review of all priority areas and their goals. The management of Munters firmly believes that more ambitious sustainability goals must be set going forward. In 2020, the focus will be on laying a foundation for them.

The Board of Directors has adopted the following financial targets and dividend policy for the Group:

• Net sales growth – Munters’ objective is to achieve an annual organic sales growth of  5 percent, supplemented by selective acquisitions.
• Adjusted EBITA Margin – Munters’ objective in the medium-term is to have an Adjusted EBITA Margin of 14 percent.
• Capital structure – Munters aims to maintain a ratio of Net Debt to Adjusted EBITDA of 1.5x to 2.5x, and may temporarily exceed this level (e.g., as a result of acquisitions)
• Dividend policy – Munters aims to pay an annual dividend corresponding to 30–50 percent of its consolidated income for the period. The pay-out decision will be based on the Company’s financial position, investment needs, acquisitions and liquidity position. There can be no assurances, however, that in any given year a dividend will be proposed or declared. There can be no assurances that in any given year a dividend will be proposed or declared, however.
  The Board of Directors proposes that no dividend be paid for 2019.