Financial strategy
Swedish Match’s operations are characterized by strong cash flows. The financial strategy is centered on capital efficiency with a focus on financial flexibility and stability requirements.
Net debt
The Board of Directors has determined that the Group will strive to maintain a net debt that does not exceed 3 times EBITA. The actual level of net debt will be assessed against:
- anticipated future profitability and cash flow
- investment and expansion plans
- acquisition opportunities
- development of interest rates and credit markets
The Board of Directors’ long-term goal is to optimize the capital structure of the Group which in the current environment entails maintaining a Standard & Poor’s BBB and a Moody’s Baa2 long-term rating.
Shareholder distribution
Swedish Match has the ambition to continuously grow dividend per share with a payout ratio normally within the range of 40–60 percent of the earnings per share, subject to adjustments for larger one-time items. Excess funds shall be returned to shareholders through dividends and share repurchases.
Transfer of capital to shareholders
| Ordinary dividend | Repurchase of own shares | Special dividend | |
|---|---|---|---|
| 2016 | 1,506 | 1,249 | 4,016 |
| 2017 | 1,545 | 2,590 | 1,363 |
| 2018 | 1,613 | 2,512 | 1,298 |
| 2019 | 1,777 | 2,989 | 0 |
| 2020 | 2,020 | 3,099 | 0 |
