Group's strategic financial objectives for 2016–2020

The strategy and SRV’s entire operations are guided by the strategic financial objectives, updated in February 2016:

  • During the strategy period, faster growth than the industry will be pursued through large-scale projects
  • The operating profit margin will rise to more than 8 per cent by the end of the strategy period
  • Return on equity will be at least 15 per cent by the end of the strategy period
  • In International Operations, return on investment will rise to at least 15 per cent by the end of the strategy period
  • The equity ratio will remain above 35 per cent
  • The goal is to distribute a stable dividend of 30–50 per cent of the annual result, taking into account the capital needs of business operations

The achievement of the objectives is based on weak but steady economic growth in Finland, and a slight recovery and stabilisation in Russia’s economy. In addition, achieving the objectives requires substantial growth in SRV’s developer-contracted projects.

The effectiveness of financing is a critical factor for SRV’s solvency. The goal is to further improve the effectiveness of project financing. In addition to the right forms and sources of financing, also the timing of the projects are important. The return on capital will be increased by improving profitability via optimisation of the project portfolio. The rate of turnover of capital will be increased by broadening the financial shoulders. An example of this is Russia Invest, a property-investment company that SRV established in 2011 with other financially-sound Finnish institutions.