Goals and strategies
Goals
In connection with the Interim Report for the third quarter 2009, the Board of Directors of Björn Borg have laid down new financial objectives for the period 2010-2014
Financial Targets
Björn Borg shall generate:
• Average annual organic growth of at least 10 percent
• An average annual operating margin of at least 20 percent
• An annual dividend of at least 50 percent of net profit
• Long-term cash reserves equivalent to 10-20 percent of annual sales
Comments on the Financial Targets:
– During the beginning of the period sales growth could fall below the target, since
several new markets are being added
– The surplus liquidity will be distributed gradually during the forecast period, starting
in 2010
– Operating investments 2–5 percent of net sales
Dividend Policy
An annual dividend of at least 50 percent of net income after tax
Strategies
Björn Borg will grow in new and recently established markets and further improve its strong position in established markets by:
• focusing on its largest product group, underwear, and offering an attractive, complementary range of Björn Borg products, with sales through both independent retailers and Björn Borg stores,
• utilizing the broad-based competence and experience within the Company to further strengthen its position in fashion underwear,
• working closely with strong local distributors with an established distribution network, experience in underwear or fast-moving consumer goods and the resources for marketing investments,
• implementing the current business model, which facilitates a geographical and product expansion with limited operating risk and capital investment.
Updated 2010-01-14