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 2017, the Jungfrau Railway Group exceeded all targets. The return on sales amounted to 21.5%, the EBIT margin reached 27.4%. With the proposed dividend increase to CHF 2.40 per share (previous year CHF 2.10), the payout ratio at 33.9% is at the lowest end of the defined target range. Capital expenditures accounted for 37.9% of cash flow during the year, but only due to delays in realizing the key elements of the V-Cableway project. For 2017, this resulted in an unexpectedly high free cash flow of CHF 33.8 million. The accumulated free cash flow for the 2014-2023 target period at the end of 2017 therefore amounts to CHF 57.2 million. At the end of the reporting year, the level of self-financing was 81.6%.