Greater focus on growth and innovation

By focusing on developing and strengthening our leading, global position in aluminium heat exchanger materials, Gränges expects to achieve growth in all geographical regions, with sustained and sustainable profitability.

Financial Targets

Gränges’ long-term financial targets state that Gränges should grow at least in line with the market, generate a return on capital employed of between 15–20 per cent, have a net debt in the range of one to two times EBITDA, and pay a dividend of between 30–50 per cent of the profit for the year.

Increase sales volume at least in line with the company’s end-markets.



Comment: The acquisition in the US was consolidated into Gränges’ accounts from August 22, 2016, which resulted in a considerable increase in sales from the third quarter of 2016. Excluding the acquired business, sales volume increased by 7.6 per cent in 2016, which was higher than the growth in end-markets.

Net debt should normally be between 1–2 times EBITDA over a 12-month period.



Comment: Net debt increased by SEK 2,447 million in 2016 to SEK 2,722 million as at December 31, due to the acquisition in August 2016, which was entirely financed with loans. Net debt amounted to 2.1 times EBITDA as at December 31, 2016. Gränges’ assessment is that net debt will return to the target range during financial year 2018 at the latest.

Target is to generate a return on capital employed of 15–20 percent over time.



Comment: Return on capital employed decreased 0.7 percentage points to 17.5 per cent in 2016. The acquired business contributed to improved adjusted operating profit and higher capital employed.

Target is to pay a dividend of between 30–50 per cent of the profit for the year over time. Decisions on dividends will reflect the company’s financial position, cash flow, and outlook.



Comment: The dividend for the 2016 fiscal year was decided at SEK 2.40 per share. This corresponds to 36 percent of the profit for the year 2016, an increase of 20 percent from the previous year.


By offering customized products with a high technical content, Gränges aims to grow significantly above market rate in the coming years, with sustained and sustainable profitability.

By 2020, Gränges shall be the market leader in all geographical regions within rolled aluminium heat exchanger materials.

Strategy 2020

Gränges’ 2020 strategy has four pillars:

Gränges wants to lead the development of heat exchanger materials and advanced aluminium solutions and to be the customers’ preferred choice.

Gränges strives to be a sustainable link in the value chain by reducing its environmental footprint and by enforcing the strictest of work place safety standards.

Gränges aims to increase productivity, process stability and energy efficiency and to reduce waste in our operations.

Gränges plans to invest in production capacity and capabilities and to expand into adjacent markets.