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.