Bonava Presents Strategic Review Results and Revised Financial Goals

Following Bonava’s strategic review, the Board adopted revised objectives and an updated strategy to promote long-term value creation. From 2022, the company will be managed on the basis of six objectives, two of which are financial. One of the goals is to more than double the pre-tax profit for 2.2 billion Swedish kronor in 2026. As a result of the updated strategy, the costs of SEK 150 to 200 million will be recognized as items affecting comparability in the fourth quarter of 2021.

During the year, Bonava conducted an in-depth analysis of its operations and business environment to identify the prerequisites for increased efficiency and profitability. In light of the review now completed, the Board decided to clarify and revise the Group’s objectives, which include both its raison d’être and its strategic axes as well as internal and external financial and extra-financial objectives. .

The Group is currently active in eight geographic markets comprising a total of 22 regions, following its decision to end its Danish activities. In the future, the company’s ambition is to increase its presence and strengthen its position in regions offering the best conditions for creating long-term value. This implies an increased need to invest in more building rights where the possibilities for growth are greatest. Capital will be distributed to each region based on the prerequisites and profitability of each business unit, as well as where investments provide the best return against risk and shareholder value. Investments in building rights should be linked to increased resource efficiency through repetitive production and a clearer business focus.

“The updated strategy aims to ensure a more business-oriented approach based on local market conditions. For example, this may involve keeping selected rental projects under own management for a certain period, which is seen as an attractive extension. of the business model ”, says Pierre Wallin, President and CEO, Bonava.

Bonava’s value creation is made visible through new clarified objectives that orient the company towards a result in absolute terms and towards an increased integration of sustainability throughout the value chain.

“Over the past five years, Bonava has established itself as one of the leading developers of sustainable housing. With clearer goals, we are starting the next step on our journey to build more on the solid work being done in our organization. Our goal – to create and deliver sustainable and happy neighborhoods to more people – provides us with the right platform to create value for our customers, employees, shareholders and society as a whole, ”says Pierre Wallin.

Financial effects in the fourth quarter of 2021

As a result of the updated strategy, items affecting the comparability of -150 SEK at -200 million will be published in the fourth quarter of 2021. These items affecting comparability mainly consist of write-downs in the value of land due to the revised strategy and sunk costs related to projects that did not materialize.

Bonava’s objectives and dividend policy from 2022

  • Profitability: Profit before tax of 2.2 billion Swedish kronor in 2026 (an increase of 120% compared to 2020)
  • Growth: 8,000 homes sold in 2026 (an increase of 44% compared to 2020)
  • Health and security: Our goal is a healthy and safe workplace for all
  • Client satisfaction: Net Promoter Score (NPS)> 50
  • Climate action: By 2030, Bonava will reduce its direct and indirect greenhouse gas emissions by 50% compared to baseline 2018
  • Employee contract: Employee engagement will be in line with the top 10 percent of top performing companies

In addition to the revised targets, the target remains for the minimum equity / asset ratio to be 30%. Bonava’s dividend policy is to distribute at least 40 percent of Group profits after tax to shareholders over an economic cycle.

Presentation of the 3rd quarter today at 11:00 a.m. (CEST) and Capital Markets Day on December 14

President and CEO Pierre Wallin and financial director Lars Granlöf will comment on the press release during the third quarter results webcast, to be held in 11:00 today. Follow the live webcast presentation on: bonava.com/audiocast Q3 2021

Pierre Wallin and other key members of Bonava’s management will present in more detail Bonava’s business, revised goals and updated strategy during a Capital Markets Day digital webcast on Tuesday, December 14, 2021. An invitation with more details will be published later.

For more information please contact:

Lars Granlöf, CFO
lars.granlö[email protected]

Phone. : +46 790 631 609

Carolina Strömlid, Head of Investor Relations

[email protected]

Phone. : +46 708 807 173

Fredrik Hammarbäck, Head of Group Press and Public Affairs

[email protected]

Phone. : +46 739 056 063

This information is such as Bonava AB (released) is required to make public in accordance with the EU Market Abuse Regulation. The information has been submitted for publication, through the contact person indicated above, at 7:00 a.m. CEST to 28 October 2021.

Bonava is a leading residential developer in North Europe which creates homes and neighborhoods where people have the best quality of life. The company is the leading residential developer in Europe to receive the approval of the Science Based Targets initiative for its climate objectives. With its 2,100 employees, Bonava develops residential housing in Germany, Sweden, Finland, Denmark, Norway, Saint PETERSBOURG, Estonia, Latvia and Lithuania, with net sales of around SEK 17 billion in 2020. Bonava’s shares and green bonds are listed on Nasdaq Stockholm.

For more information about us, visit: www.bonava.com

https://news.cision.com/bonava-group/r/bonava-presents-outcome-of-strategic-review-and-revised-financial-targets,c3441982

https://mb.cision.com/Main/13957/3441982/1487505.pdf

(c) Decision 2021. All rights reserved., source Press Releases – English


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