Nobina - a sustainable investment

Nobina is the Nordic region’s largest and most experienced operator of public bus transport services. Our expertise in tendering and active management of traffic contracts in combination with long-term delivery quality makes us the industry leader in terms of profitability, development and initiatives that promote a healthier industry.

FINANCIAL TARGETS

Nobina’s target is to achieve 5 PER CENT accumulated annual average net sales growth with 2018/2019 as base year.

Nobina’s target is to achieve an EBT margin of 5 PER CENT at average contract age being 50 per cent of average contract length.

Under normal circumstances, Nobina aims to maintain a net leverage ratio of 3.0x TO 4.0x EBITDA including strategic debt financing.

LONG-TERM GROWTH

Nobina operates in four markets in the Nordic countries, which have similar characteristics in terms of public transport services. Urbanisation, growing environmental awareness, public-sector investments and greater mobility are strong forces driving long-term growth in the Nordic public transport market. By winning and actively managing the right contracts in the right traffic areas, making complementary acquisitions and developing value-creating services and bus solutions, we aim to continue growing faster than the market.

OPERATIONAL EFFICIENCY

Nobina is striving to proactively influence the design of contracts to ensure fair terms and conditions and the development of balanced compensation models. At the same time, long contract periods entail favourable conditions for analysis and profitability improvements over the contract period. We are also studying how each individual contract fits in relation to our depots and traffic management centres, and ensure that optimal use is made of the vehicle fleet and other resources within the Group.

OPTIMISED CAPITAL STRUCTURE

Nobina strives to maintain a net leverage ratio of between 3.0 and 4.0 times EBITDA, including strategic debt financing. A higher net debt is often a result of the start of new contracts and the procurement of new buses. Given that Nobina aims only to take on profitable contracts, and that these contracts are generally long term with solid counterparties, Nobina is able to use debt to good effect, without excessive risk, to enhance both its profitability and the returns it provides to its shareholders. Nobina mainly finances buses over ten years at 10 per cent residual value.

HIGH LEVEL OF DIVIDENDS

Nobina’s new dividend policy means that Nobina, under normal circumstances, annually will distribute at least 75 per cent of profit after tax paid. Over the past three fiscal years, an average of 76 per cent of earnings after tax paid has been distributed. For the 2018/2019 fiscal year, the Board of Directors has proposed a dividend of SEK 3.80, corresponding to 76 per cent of earnings after tax paid and a dividend yield of 5.9 per cent based on the closing price on 28 February 2019.

ABOUT THE GROUP

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CORPORATE GOVERNANCE

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SUSTAINABLE BUSINESS

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