The targets are followed up annually

  • The annual organic sales growth for the truck, bus and construction equipment operations, as well as Volvo Penta, shall be equal to or exceed a weighted-average for comparable competitors.
  • Each year, the operating margin for the truck, bus and construction equipment operations, as well as Volvo Penta, shall be ranked among the top two companies when benchmarked against relevant competitors.
  • For Customer Finance Operations, the existing targets of 12-15% return of equity (ROE) and an equity ratio exceeding 8% stand firm.
  • Volvo Aero has an ROE target of 15-25%. When calculating the ROE, Volvo Aero will be assigned the same equity ratio as that for the Group’s Industrial Operations.
  • 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.