Financial and sustainability targets

Vattenfall's financial and sustainability targets are intended to ensure that Vattenfall creates value and generates a market rate of return, that the company strives for an efficient capital structure, and that its financial risk is kept at a reasonable level.

Financial targets  

Profitability  Outcome 2013 Comment
Return on capital employed: 9%. -2.1% The outcome for 2013 was -2.1%, owing to the year's impairment of asset values totalling SEK 30.1 billion. Excluding items affecting comparability, the return on capital employed was 9.2%.
Capital structure Outcome 2013 Comment
Funds from operations (FFO)/adjusted net debt: 22%–30%. 19.6% The outcome for 2013 was below the target interval, due to a slightly lower cash flow (FFO) and a higher level of adjusted net debt.
Debt/equity ratio: 50%–90%. 81.8% The debt/equity ratio increased in 2013, from 72.1% to 81.8%, mainly due to a decrease in equity as a result of the recognised impairment of asset values in 2013.
Dividend policy Outcome 2013 Comment
The dividend should amount to 40%–60% of profit after tax over the long term. 0% Due to the negative result after tax, the Board of Directors proposes – in accordance with the company's dividend policy – that no dividend be paid for 2013. In recent years, the dividend amounted to 40% of profit after tax (2010: 50%).

Sustainability targets

Lower CO2 exposure Outcome 2013 Comment
Vattenfall will reduce the company's CO2 exposure to 65 million tonnes by 2020. CO2 emissions in 2013 totalled 88.4 million tonnes Vattenfall's CO2 emissions increased by 3.4 million tonnes in 2013 due to the commissioning of new power plants during the year. 
Growth in renewable electricity generation Outcome 2013 Comment
Vattenfall's rate of growth of newly installed renewable capacity will be higher than the average rate of growth for ten defined countries 1) in northern and central Europe during the period 2013–2020. The target pertains to new capacity in the form of solar energy, wind power and biomass. Hydro power is not included. Vattenfall's growth in renewable capacity was 9.1%, net. In 2013 Vattenfall installed 145 MW of new capacity and thereby increased its capacity by 9.1%, compared with 2012. National statistics on growth in renewable energy capacity for the defined reference countries was not available at the time of publication of this annual report and sustainability report. A rough estimation indicates that growth will be between 11% and 15%. Vattenfall intends to report on an initial follow-up of the target in the 2014 half-year interim report.
Energy efficiency Outcome 2013 Comment
Vattenfall has a short-term target to save an average of 1 GWh per day in 2014, for a total of 365 GWh in 2014. Decision made on target for 2014. Energy efficiency improvements will be made through internal energy efficiency measures and by initiatives to help customers improve their energy efficiency. A decision on the target for 2020 will be made after evaluating the 2014 target.
1) The ten defined countries are Denmark, Finland, Norway, Sweden, Belgium, France, the Netherlands, Poland, the UK and Germany.
Last updated: 2014-03-26 11:35