Financial goals for Industrial Operations

Growth
The growth target is that net sales should increase by a minimum of 10% annually. During 2000-2010, the average growth rate was 7.4% annually.

Operating margin
The Volvo Group’s profitability target is that operating margin for the Industrial operations is to exceed an average of 7% annually over a business cycle. The average annual operating margin for the Volvo Group's Industrial Operations was 3.9% from 2000 to 2010.

Capital structure
The capital structure target is set to a net debt including provisions for post-employment benefits for the Industrial operations of a maximum of 40% of shareholders’ equity under normal conditions. As of December 31, 2010, the Volvo Group's Industrial operations had a net financial debt position corresponding to 37.4% of shareholders’ equity.