This is reflected in the financial objectives, which for 2009 were

• a return on equity of 20 percent after tax
• a positive cash flow before investments in properties classed as current assets and other investment activities
• and net indebtedness that is less than shareholders’ equity.

For 2010, the financial objectives have been aligned to the new accounting policies that will start being applied then.

BASIS FOR THE FINANCIAL OBJECTIVES

The level for the profitability objective is based on the margins that the various parts of the Group may be expected to generate on a sustainable basis, and on capital requirements in relation to the prevailing business focus.

To ensure that the return target is not reached by taking financial risks, net indebtedness – defined as interest-bearing liabilities less cash and cash equivalents and interest-bearing receivables – must be less than shareholders’ equity. As a complement to the return requirement, cash flow before investments in properties classed as current assets and other investment activities must be positive, to ensure that there is an underlying real earnings capacity in the Group, so that the return is not based upon what, from a valuation viewpoint, are profit or capital adjustments in the accounts.