Targets and target achievements

At Vattenfall we aspire to contribute to a sustainable energy system in all parts of the value chain. Our goal is to be a truly customer-centric company as we change over to a long-term sustainable production portfolio.
Vattenfall's board of directors has set six strategic targets, and Vattenfall's owner has set three financial targets for the Group.

Strategic targets

Financial targets

Strategic targets

Vattenfall's strategy is built upon four strategic objectives. Vattenfall will be 1) Leading towards Sustainable Consumption and 2) Leading towards Sustainable Production. To achieve this, we must have 3) High Performing Operations and 4) Empowered and Engaged People. Vattenfall's board of directors adopted the six strategic long-term targets to better reflect our strategy, and they took effect on 1 January 2016.


Enlarged table "Leading towards Sustainable Consumption"

Leading towards Sustainable Consumption

Outcome 2017


Customer engagement, Net Promoter Score relative1 (NPS relative): +2 


The Customers & Solutions operating segment continued its positive trend with a +2 (+7) relative NPS in 2017 and absolute improvements in the end customer market in all four core markets. Relative NPS decreased, however, as competitors made larger improvements.


Enlarged table "Leading towards Sustainable Production"

Leading towards Sustainable Production

Outcome 2017 


Commissioned new renewables capacity 2016–2020: ≥2,300 MW

652 MW2

A total of 354 MW (298) of new renewable capacity was installed in 2017. The new capacity consists of the Sandbank offshore wind farm in Germany (72 MW of total 288 MW), and the Ray (54 MW) and Pen y Cymoedd (228 MW) onshore wind farms in the UK. Another 7 GW is in the project development pipeline.

Absolute CO2 emissions pro rata: ≤21 Mt

22.6 Mt

CO2 emissions of 22.6 Mtonnes (23.2) in 2017 were slightly lower than in 2016. Higher production from certain fossil-based plants in Germany was balanced by lower production from plants in the Netherlands.


Enlarged table "High Performing Operations"

High Performing Operations

Outcome 2017


Return On Capital Employed (ROCE): ≥8%3


The return on capital employed was 7.7% (0.5%). The improvement is mainly related to large impairment losses in 2016.


Enlarged table "Empowered and Engaged People"

Empowered and Engaged People

Outcome 2017


Lost Time Injury

Frequency5 (LTIF): ≤1.25


Lost Time Injury Frequency (LTIF) was lower than a year ago, at 1.5 (2.0), reflecting the focus that safety is a guiding principle in daily operations.

Employee Engagement Index: ≥70%


The Employee Engagement Index was 64% (57%) in 2017. The improvement can be credited to a clearer strategy and purpose to drive change.


1) NPS is a tool for measuring customer loyalty and for gaining an understanding of customers' perceptions of Vattenfall's products and services. The target is a positive NPS in absolute terms +2 compared to Vattenfall's peer competitors.

2) Pertains only to wind farms completed and commissioned between 1 January 2016 and 31 December 2017.

3) The target for Return on Capital Employed (ROCE) was changed from 9% to 8% by Vattenfall's owner at an extraordinary general meeting in December 2017.

4) The key ratio is based on average capital employed.

5) Lost Time Injury Frequency (LTIF) is expressed in terms of the number of lost time work injuries (per 1 million hours worked), i.e., work-related accidents resulting in absence longer than one day, and accidents resulting in fatality. The ratio pertains only to Vattenfall employees.

6) Documentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted on an annual basis.


Financial targets

The financial targets pertain to profitability, capital structure and the dividend policy, and were set by Vattenfall's owner at an extraordinary general meeting in December 2017. These targets are intended to ensure that Vattenfall creates value and generates a market rate of return, that the capital structure is efficient, and that financial risk is kept at a reasonable level.

The targets are to be evaluated over a business cycle.

The old targets, set in November 2012, are shown within brackets in the table below.


Enlarged table "Profitability"


Outcome 2017


Return on capital employed: 8% (9%)


The return on capital employed was 7.7% (0.5%).


Enlarged table "Capital structure"

The target for Net debt/equity ratio was removed at the extraordinary general meeting in December 2017 and is therefore not applicable for 2018. The outcome for 2017 versus the previous target is included in the table below.

Capital structure

Outcome 2017


FFO/adjusted net debt: 22%-27% (22%-30%)


FFO/adjusted net debt decreased slightly compared with 2016, to 21.5% (21.6%). Adjusted net debt was stable, while FFO decreased slightly mainly due to higher interest paid in 2017 as a result of a partial repurchase of a bond maturing in 2039.

Net debt/equity ratio: N/A (50%-90%)


The debt/equity ratio increased to 63.0% (60.5%) compared with 2016, mainly due to a reclassification of SEK 15.7 billion in nuclear power provisions to debt, which was partly offset by a positive net cash flow of SEK 7.1 billion after investments.



Enlarged table "Dividend policy"

Dividend policy

Outcome 2017


The dividend should amount to 40-70% (40-60%) of the year's profit after tax.

SEK 2 billion2

The Board of Directors proposes payment of a discretionary dividend of SEK 2 billion for 2017.


1) The key ratio is based on average capital employed.

2) The proposed dividend will be voted on at the Annual General Meeting on 25 April 2018.


Last updated: 2018-04-27 17:39