Financial targets and outlook

Financial targets for the strategy period 2021–2024

Revenue: Loihde Group aims to achieve average annual revenue growth of more than 10 per cent, including potential acquisitions.

Profitability: The profitability target is an adjusted EBITDA margin in excess of 10 per cent, calculated in accordance with the IFRS standards. The Group plans to transition to IFRS-compliant reporting during the strategy period. The management estimates that the transition to IFRS reporting will increase the adjusted EBITDA margin by approximately 3–4 percentage points compared to the corresponding figure calculated in accordance with the FAS standards.*

*The difference of 3–4 percentage points, estimated by the management, between the adjusted EBITDA margins calculated in accordance with IFRS vs. FAS standards is mainly due to handling of leases in accordance with IFRS 16.

Outlook for 2021

Loihde intends to take measures in 2021 related to the achievement of long-term objectives, and the development expenses associated with these measures will temporarily reduce the company’s operational profitability. It can also be expected that the costs that decreased in 2020 due to the COVID-19 pandemic will partly return closer to normal levels in 2021.

In 2021, Loihde expects the revenue of continuing operations in the digital business to grow. Revenue from the security business is expected to remain on a par with the previous year or show moderate growth. The Group’s adjusted EBITDA is estimated to be lower than in 2020.