Financial target: 
Average sales growth shall amount to a minimum of 10% per year over a business cycle. Growth is to be achieved organically as well as through acquisitions.

Target achievement: 
During the last five-year period, average annual sales growth was 14%. Net sales rose 9% in 2019. Adjusted for divestments, sales growth was 10%. The increase for comparable units was 2%, acquisitions contributed 7%, and the effect of divestments was -2%. Currency movements had a positive effect on net sales of 2%.

Financial target: 
The EBITA margin shall amount to a minimum of 12% per year over a business cycle.

Target achievement: 
The EBITA margin has averaged 11.9% over the last five years. The EBITA margin in 2019 was 12.7%.

Financial target:
The return on capital employed (previously called operating capital) shall be a minimum of 20% per year on average over a business cycle

Target achievement: 
During the last five years the average return on operating capital was 20%. In 2019 the return was 19%. Adjusted for IFRS 16 Leases, the return on capital employed should have been 20%.

Financial target: 
The net debt/equity ratio shall normally not exceed 100%.

Target achievement: 
During the last five years, the net debt/equity ratio at the end of each year year ranged from 63% to 85%. The net debt/equity ratio at year-end 2019 was 85%.

Financial target: 
The dividend payout ratio shall range from 30% to 50% (previously 60%) of net profit.

Target achievement: 
During the last five years, the dividend payout ratio has been an average of 41%, including the proposed dividend. For 2019, a dividend of SEK 4.75 has been proposed, corresponding to 39%.

Strategy: Growth will be achieved organically and through acquisitions:

• In existing and new technology areas
• Through a broadened customer offering based on relevant knowledge, such as extended support, training and other aftermarket services
• Via innovation and development of both products and offerings
• Geographically in selected markets.

Strategy: Indutrade acquires well-managed, successful and typically owner-led industrial companies whose management teams are eager to continue running and growing the business. The companies manufacture or sell products in distinct markets. We can also make smaller, add-on acquisitions through our existing companies to strengthen market positions. A central feature of the acquisition process is to ensure that there is a shared foundation of values and ethical principles. All subsidiaries are expected to follow our Code of Conduct.

Effect: Indutrade acquires companies with the aim of developing them over the long term. We do not change the companies’ names and neither do we merge companies. This assures the seller that the company will be able to, even over the long term, continue as a player in the market.

Performance in 2019: The acquired companies have a skilled management team with true entrepreneurial spirit and vast technical expertise. Several of the acquisitions made in 2019 were add-on acquisitions aimed at further strengthening our market position in attractive segments.

Strategy: Indutrade focuses on sales of products in niches in which it can attain a leading position.

Effect: Strong market positions are often a prerequisite for good profitability and being able to attract the best suppliers, all of which further solidifies Indutrade’s position.

Performance in 2019: Several of Indutrade's subsidiaries have leading positions within their niches. They were able to maintain those positions and many were even able to strengthen them in 2019.

Strategy: Indutrade gives priority to suppliers who, through own product development, provide market-leading, high-quality products with a high-tech content. A partnership with an Indutrade company should be the most profitable way for suppliers to sell their products.

Strategy: Indutrade has many companies with proprietary products and brands. The products should have a high-tech content, while the companies should have a strong market position and good growth potential.

Effect: Companies with proprietary products and brands provide balance to the Group’s technology sales companies. Since 2004 the share of companies with proprietary products has grown by 31 percentage points, and in 2019 they accounted for 40% of consolidated net sales.

Performance in 2019: A large portion of the companies acquired in 2019 have own brands, which is entirely in line with our strategy to increase the share of companies with proprietary products.

Strategy: The Group’s companies give priority to customers with a recurring need that are active in industries where the prospects are favourable for maintaining competitive production in their home markets. Many of these industries are characterised by a high degree of automation, high distribution costs and/or large start-up investments.

Strategy: Indutrade’s product and service offering, which is aimed at both end users and OEM customers (i.e. customers that integrate Indutrade’s products in their own products), should have high-tech content and incorporate a high level of service and qualified technical consulting. Indutrade’s sales representatives must have a high level of technical expertise in their respective niches and a depth of knowledge about the customers’ production processes.

Effect: This makes Indutrade an attractive business partner that creates added-value for customers and suppliers alike.

Preformance in 2019: The companies continuously strive to establish closer ties with customers and acquire more expertise in their areas of technology. During the year, several informal meetings for experts in a particular areas, such as exports, where they could exchange knowledge and experience aimed at strengthening the overall customer offering.

Strategy: Indutrade’s governance model is characterised by decentralisation, as the best business decisions are made close to customers by people who have the best understanding of the customers’ needs and processes.