Strategy and targets

At its inaugural meeting on 1 June 2017, Eltel’s Board of Directors decided on revised financial targets for Eltel.

Medium to long-term financial targets for the company’s core business¹

  • annual growth of Eltel’s core business of 2-4%, including selective acquisitions,
  • EBITA margin of at least 5%,
  • cash conversion of 95-100 percent of EBITA², and
  • leverage of 1.5-2.5x net debt/EBITDA³.

¹ Eltel’s core business comprises the Power and Communication segments, that is, excluding activities in Other that will be divested or discontinued.

² Cash conversion is calculated as operating cash flow as a percentage of EBITA. Operating cash flow is calculated as the sum of (a) operating profit before acquisition-related depreciation (EBITA), (b) depreciation and (c) change in working capital, less (d) net acquisition of properties, machinery and equipment (CAPEX).

³ Net debt / EBITDA is calculated as net debt, which is defined as interest-bearing liabilities consisting of short-term and long-term liabilities less cash and cash equivalents, in relation to EBITDA.


Petter Traaholt +46 72 59 54 749