Annual organic growth of 4–5 per cent over the course of a business cycle.
In 2021, Coor grew organically by 3 per cent. The pandemic continued to have a negative effect on sales, but this was offset by new business and high project volumes in parts of the business.
A cash conversion rate in excess of 90 per cent in the medium term.
Continued structured cash flow management led to improved working capital and a balanced investment level, which resulted in continued strong cash conversion.
The goal is to distribute around 50 per cent of the company’s adjusted net profit for the period (before amortisation and impairment of intangible assets) in ordinary dividends to the shareholders.
In view of the company’s strong earnings, cash flow and low debt level, the Board proposes a dividend for 2021 of SEK 4.80 per share (comprising an ordinary dividend of SEK 2.40 per share and an extraordinary dividend of SEK 2.40 per share). Accordingly, the total dividend amounts to 101 per cent of the company’s adjusted net profit for the year. The proposed dividend is subject to approval at the 2022 AGM.
An adjusted EBITA margin of around 5.5 per cent in the medium term.
Coor reported an improved EBITA margin for 2021, which is attributable to a strong focus on costs and efficiency as well as a favourable volume mix. The positive non-recurring effect in the form of a reimbursement from the collectively agreed AGS health insurance scheme also had a positive effect on the margin, which was partly offset by a temporary increase in costs driven by the large number of acquisitions and integrations during the year.
Net debt of less than 3.0 times adjusted EBITDA in the medium term.
During the year, Coor completed three acquisitions which had a total effect on cash and cash equivalents of SEK 646 million and paid dividends of SEK 417 million to the shareholders. Despite this, the company reported a leverage of 2.0 times adjusted EBITDA, which is well in line with the Group’s target.
The goal is to maintain a high level of customer satisfaction over time (Customer Satisfaction Index) ≥70.
Coor’s results improved further and customer satisfaction is now at its highest level to date.
The goal is to reduce the company’s TRIFR (total recorded injury frequency rate) to ≤3.5 by 2025.
Efforts to reduce the number of injuries have yielded results. Injuries are declining but the goal has not yet been achieved.
The goal is to maintain a high level of employee motivation (Employee Motivation Index) ≥70.
In this year’s employee survey, Coor maintained the same score as last year – a very stable and good result.
The goal is a 50/50 gender balance at management level.
Across the company as a whole, the proportion of women in managerial positions is 51 per cent – a figure that has remained stable and is in line with the company’s goal.
Coor is working to reduce its emissions of greenhouse gases. Our goal is to reduce our Scope 1 and 2 emissions under the global Greenhouse Gas Protocol framework by 50 per cent by 2025 compared with our baseline year 2018.
Taken together, Coor’s Scope 1 and 2 emissions have increased in absolute terms since 2018. The failure to achieve the desired reduction in Scope 1 emissions has several reasons, such as an increased share of services provided in-house, which leads to a redistribution of emissions, as well as challenges regarding access to electric vehicles. The efforts to achieve this goal are being ramped up and will require a combination of an increased share of electric vehicles and a transition to HVO fuel wherever the use of electric vehicles is not yet possible. Scope 2 emissions decreased by 42 per cent due to an increased share of renewable energy in a transition that is still ongoing.