Following Bonava's strategic review, the Board has adopted revised targets and an updated strategy to promote long-term value creation. From 2022, the business will be managed on the basis of six targets, two of which are financial. One of the targets is to more than double earnings before tax to
During the year, Bonava has conducted a thorough analysis of its operations and business environment to identify the prerequisites for increased efficiency and profitability. In light of the now completed review, the Board has decided to clarify and revise the Group's objectives, which include both its purpose and strategic focus areas as well as internal and external financial and non-financial objectives.
The Group is currently active in eight geographic markets comprising a total of 22 regions, following its decision to wind down the Danish operations. Going forward, the company's ambition is to increase its presence and strengthen its position in regions that offer the best conditions for long-term value creation. This entails an increased need to invest in more building rights where the scope for growth is the greatest. The capital will be distributed to each region based on each business unit's prerequisites and profitability, as well as where the investments provide the greatest return in relation to risk and shareholder value. Investments in building rights must be linked to increased resource efficiency through repetitive production and a clearer commercial focus.
"The updated strategy aims to ensure a more business-driven approach based on the conditions of the local market. For example, this may involve retaining selected tenancy projects under own management over a certain period of time, which is considered to be an attractive broadening of the business model," says
Bonava's value creation is made visible through new, clarified objectives that steer the business towards a result in absolute terms and towards increased integration of sustainability throughout the value chain.
"Over the past five years, Bonava has established a position as a leading sustainable housing developer. With clearer goals, we are embarking on the next stage of our journey to further leverage the solid work done in our organisation. Our purpose - to create and offer sustainable, happy neighbourhoods for more people - provides us with the appropriate platform to create value for our customers, employees, shareholders and society at large," says
Financial effects in the fourth quarter of 2021
As a consequence of the updated strategy, items affecting comparability of
Bonava's targets and dividend policy as of 2022
- Profitability: Earnings before tax of
SEK 2.2 Bn in 2026 (an increase of 120 per cent from 2020) - Growth: 8,000 homes sold in 2026 (an increase of 44 per cent from 2020)
- Health and safety: Our target is a healthy and safe workplace for everyone
- Customer satisfaction: Net Promoter Score (NPS)> 50
- Climate action: By 2030, Bonava will reduce both direct and indirect emissions of greenhouse gases by 50 per cent, compared with the base year of 2018
- Employee engagement: Employee engagement will be in line with the top 10 per cent of the best performing companies
In addition to the revised targets, the target remains that the minimum equity/assets ratio should be 30 per cent. Bonava's dividend policy is to distribute at least 40 per cent of the Group's profit after tax to shareholders over a business cycle.
Q3 presentation today at
President and CEO
For more information, please contact:
lars.granlöf@bonava.com
Tel: +46 790 631 609
Carolina Strömlid, Head of Investor Relations
carolina.stromlid@bonava.com
Tel: +46 708 807 173
Fredrik Hammarbäck, Group Head of Press and Public Affairs
fredrik.hammarback@bonava.com
Tel: +46 739 056 063
This information is such that
Bonava is a leading residential developer in
For more information about us, visit:www.bonava.com
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