Capital Allocation and Dividend

The Group’s capital structure must at all times ensure the financial flexibility required to implement the strategic objectives announced.

Going forward, specifically towards the end of the strategy period, the Group expects to generate substantial free cash flows once more. The free cash flows will, in order of priority, be used to bring down debt if the financial gearing ambition has not been met; for investing for profitable growth within the existing business; and for distribution to the shareholders by way of dividends and, possibly, share buybacks.

Based on the current uncertainty pertaining to economic and societal conditions in 2020/21 and on the Board’s decision to strengthen Matas’ liquidity and reduce the gearing ratio, the Board of Directors proposes that no dividend be paid for financial year 2019/20.

Going forward, a payout ratio of at least 30% of Adjusted profit after tax is expected.