• Return on equity should amount to at least 20 per cent
• The equity/assets ratio in the long term will exceed 25 per cent
• Dividend to shareholders should amount to at least 50 per cent of the profit after tax

Profitability is the overriding objective of the Group. Expressing profitability in the form of return on capital employed, takes the differences in tied up capital in the Group’s operations and the differences in tied up capital depending on the type of project into consideration. For internal control, this objective is complemented by profitability requirements in the form of operating margin targets.

Return on equity is used as a key ratio at Group level and amounted to 18.7  per cent in 2009 (22.1) including profit from discontinued operations, net after tax.

The equity/assets ratio target is 25 per cent, which is a suitable capital structure for Peab after refinement of the company to an out-and-out construction and civil engineering company. If the equity/assets ratio is expected to exceed this level on a permanent basis, the capital should be transferred to the shareholders in the appropriate form. As at 31 December 2009, the equity/assets ratio totalled 28.6 per cent (24.0).

Dividend should be in a reasonable proportion to the development of Peab’s profits and consolidation requirements. The dividend amounts to SEK 2.50 per share (2.25). Calculated as a share of the group’s reported profit after tax, the dividend amounts to 56 percent (58).

Seen from an investor’s perspective, it is Peab’s objective that shareholders enjoy a high return, partly as dividends and partly in the form of value growth on invested capital.

Business sectors
The Group's financial targets are broken down for each business sector into individual targets for return on capital employed and operating margins. For Construction and Civil Engineering, profitability for Project Development shall exceed 10 percent, for trust-based contracts and for other types of contract exceed 5 percent.