Strategic financial targets
The strategic financial objectives of the Jungfrau Railway Group reflect the orientation towards long-term goals and the policy of a value-oriented company (value stock). The profit and free cash flow targets also determine the financial planning of the group.
| Key figure | Target value |
|---|---|
| Return on sales | ≥ 12% |
| EBIT margin | ≥ 15% |
| Investments / cash flow | < 50% |
| Payout ratio | 33% – 50% |
| Cumulative free cash flow 2014‒2023 | ≥ CHF 150 Mio. |
| Equity ratio | > 70% |
In order to meet the objectives of self-financing and investment in relation to cash flow, the long-term average applies when it comes to the assessment. Due to the high investment requirements of the V-Cableway project, the investment / cash flow objective cannot be met temporarily.
In 2016, the Jungfrau Railway Group once again exceeded its earnings targets. The return on sales amounted to 18.3%, the EBIT margin reached 21.5%. With the proposed dividend increase to CHF 2.10 per share (previous year CHF 2.00), the payout ratio at 39.7% is within in the defined target range. Investments in the reporting year accounted for 73.6% of cash flow. For 2016, there was a free cash flow of CHF 18.1 million. As a result, the cumulative free cash flow of the target period 2014-2023 at the end of 2016 amounted to CHF 23.3 million. At the end of the reporting year, the level of self-financing was 80.9%.