Financial targets

Alleima has four long-term financial targets.

Target	Description
Organic growth	Deliver profitable organic revenue growth in line with or above growth in targeted end markets over a business cycle
Earnings	Adjusted EBIT margin¹ to average above 9% over a business cycle
Capital structure	Net Debt² in relation to Equity below 0.3x
Dividend policy	Dividend on average 50% of profit for the period (adjusted for metal price effects³) over a business cycle. Dividends to reflect the financial position, cash flow and outlook

1) Adjusted EBIT margin is defined as adjusted EBIT (EBIT excluding items affecting comparability and metal price effects) as a percentage of revenues

2) Net debt is defined as interest-bearing current and non-current debts, including net pension and leasing liabilities, less cash and cash equivalents

3) Metal price effects is defined as the metal price effects on the operating profit in a particular period from changes in alloy prices arising from the timing difference between the purchase, as included in cost of goods sold, and the sale of an alloy, as included in revenues, when alloy surcharges are applied