Bilia updates financial targets and sustainability targets

Bilia today arranges a Capital Markets Day and will present updated financial targets and sustainability targets.

Bilia’s overall vision and business concept is to be the industry’s best service company – through consideration for customers, colleagues and the world we live in. Bilia will create a sustainable business through consideration and pride by offering attractive and innovative complete solutions for the mobile human being.

Bilia’s financial targets are:

1. Total yearly growth higher than 5 per cent during a business cycle

The total growth includes organic growth and growth through acquisitions. The total growth over the last five years amounted to an average of 8 per cent and since 2012 the turnover has increased by 101 per cent.

2. Operating margin of 5 per cent during a business cycle

The operating margin target of 5 per cent means a doubling compared to previous targets of 2.5 per cent. The operating margin during the last five years amounted to an average of
4.1 per cent.  

3. Net debt in relation to EBITDA, excluding IFRS 16, over time max 2.0 times

The target is unchanged compared to before. Net debt in relation to EBITDA in recent years amounted to between -0.2 (positive net debt) to 1.3 times.

4. Dividend share of at least 50 per cent of profit per share

The target is unchanged compared to before. The dividend share over the last five years amounted to an average of 63 per cent.

The current target of return on equity of 18 per cent has been removed.

Bilia’s sustainability targets are:

1. Customer satisfaction to be three points higher than the average for each brand in their country

Satisfied customers are an important component of Bilia’s internal strategy for being a successful  organization. For the last three years, the customer satisfaction was 2.9 points higher than the average for each brand in their country.

2. Increased share of used spare parts in our repair shops

The target is linked to our circular business model and intends to increase the proportion of used spare parts from our car dismantling to our repair shops. This contributes to a better Service Business and a better use of the car throughout the entire life cycle.

3a. Proportion of committed employees above the benchmark and annual
       improvement

Proportion of committed and proud employees is an important component of our internal strategy to have proud employees and satisfied customers. For 2021, the proportion of committed and proud employees was 17 per cent points higher compared with the benchmark.

3b. Proportion of women in sales operations should exceed 30 per cent  

Bilia wants to be an equal organization, where men and women are represented in all professional categories. We want to increase the proportion of women in our business and focuses as a first step on the proportion of women in our sales operations. Today we have about 12 per cent women in sales operations.

4.   Contribute to lower climate impact among our customers when using the
      products and services we provide

Bilia wants to contribute to a lower climate impact and will work with activities to identify the way in which this should be done in order to establish measurable targets in the future.

Gothenburg, May 10, 2022

Bilia AB (publ)

For information please contact:
Carl Fredrik Ewetz, Investor Relations, +46 (0)10 497 07 73, carl.fredrik.ewetz@bilia.se
Per Avander, Managing Director and CEO, +46 (0)10 497 70 00, per.avander@bilia.se 
Kristina Franzén, CFO, +46 (0)10 497 73 40, kristina.franzen@bilia.se

This is information that Bilia AB (publ) is obliged to make public pursuant to the Financial Instruments Trading Act (1991:980). The information was submitted for publication, through the agency of the contact persons set out above, on May 10, 2022, at 08:30 CEST.

Facts about the Bilia Group

Bilia is one of Europe’s largest car dealers with a leading position within service and sales of cars, transport vehicles and trucks. Bilia has about 150 facilities in Sweden, Norway, Luxembourg and Belgium. Bilia sells cars of the brand Volvo, BMW, Toyota,
Mercedes-Benz, Renault, Lexus, MINI, Porsche, Nissan, Dacia, Smart and Alpine and transport vehicles of the brand Renault, Toyota, Mercedes-Benz, Nissan and Dacia and trucks of the brand Mercedes-Benz.

Bilia has today a fully expanded business with sales of new cars, e-commerce, spare parts and store sales, service and repair workshops, tyres and car glass and financing, insurance, car washes, fuel stations and auto salvage under the same roof, which gives a unique offer.

Bilia reported a turnover of about SEK 35 bn in 2021 and had about 5,300 employees.

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• Bilia updates financial targets and sustainability targets