FINANCIAL TARGETS

Long-term financial targets

The underlying objective is to double AddLife's profit (EBITA) over a five-year period through growth of 15 percent per year. Growth will be generated both organically and through acquisitions. Acquisitions are largely financed with own cash flow through high profitability (P/WC) of at least 45 percent.

Profit growth EBITA 15 percent
Profit growth (EBITA) for the long term shall be 15 percent per year. In 2024, EBITA increased by 2 percent, and adjusted for revalued contingent considerations and restructuring costs, EBITA increased by 14 percent. During the year, one acquisition was completed, meaning that growth has primarily been organic.

Dynamisk graf: Earnings growth EBITA

^{*Adjusted for contingent consideration and restructuring costs}

Profitability 45 percent
Profitability (P/WC), i.e. the ratio of operating profit (EBITA) to working capital, must exceed 45 percent.

Dynamisk graf: P/WC

Financial governance model
Based on the overarching long-term financial targets of the Group, and the situation, financial position and circumstances of each subsidiary, all subsidiaries have individual targets and financial focus areas for both profit growth and profitability (P/WC). About 25 percent of the subsidiaries focus mainly on the EBITA margin, while 65 percent focus on increased profit growth and 10 percent focus primarily on streamlining working capital.

Dividend policy 30-50 percent
AddLife’s dividend policy is to pay a dividend equivalent to 30-50 percent of consolidated profit after tax. Consideration is taken to investment needs and other factors that the Board of Directors of the company considers to be relevant. The Group exhibits robust and reliable cash generation, supported by a business model resilient to economic fluctuations. The robust cash flow performance in the year underpins our objective to reduce net debt through internally generated cash flow. Therefore, the Board of Directors proposes to the 2025 Annual General Meeting a dividend of SEK 0.75 per share for the financial year 2024, which corresponds to 36 percent of the Group's profit after tax.

Dynamisk graf: Dividend