|Objectives||Target level||Realisation in 2016||Realisation in 2015||Realisation in 2014|
|Return on capital employed*||14%||11.9%||11.7%||9.9%|
|Return on equity*||12%||9.8%||8.2%||7.6%|
|Interest-bearing net debt/EBITDA||< 2.5||0.4||-1.4||-0.3|
|Kesko's dividend policy: Kesko Corporation distributes at least 50% of its comparable earnings per share as dividends, taking into account, however, the Company’s financial position and operating strategy.|
ROCE and ROE, comparable, %
Capital expenditure, €m
In the future, Kesko will operate more strongly as a unified K Group, which will enable us to offer customers ever better services and to operate efficiently.
The strategic objective is to strengthen the customer experience for consumers and businesses at both stores and on digital channels. The key focus areas include the renewal of the chain concepts, building the best digital services in the sector and revising the K-Plussa customer loyalty system.
To ensure competitiveness and improve profitability, we have realised savings of €50 million in fixed costs. We estimate that the acquisitions will generate over €30 million in synergies at the EBITDA level from 2018 onwards and over €60 million from 2020 onwards.
In 2015 and 2016, we made capital expenditure of €500 million in business operations, excluding acquisitions. As of 2018, we estimate that the annual capital expenditure will be less than €200 million.