Our key financial performance indicators are EBIT (earnings before interest and taxes) before currency effects, free cash flow, the equity ratio and the dynamic leverage ratio. Our aim is to steadily increase revenues while continually improving the EBIT margin. Positive free cash flow should also be generated so that the combined effect of these various performance indicators reduces the dynamic leverage ratio and improves the quality of the balance sheet. Our aim, however, is not necessarily to improve all of these parameters every year. Instead, we are looking for a balance between improving our financial ratios while taking advantage of unique market opportunities, which usually entail a temporary period of higher investment.
Our medium-term plans are based on our new business, which consists of the lifetime volume of newly acquired orders over their entire term, based the orders’ contractual agreements and past experience. New business volume should offset the yearly volume of phased-out series productions and still provide additional room for growth. Volumes may, however, fluctuate greatly from year to year because customers make their order decisions about new orders at different times and large orders are not always awarded every year.