DNA's financial targets updated: EBITDA margin to reach at least 32 per cent in mid-term

DNA PLC STOCK EXCHANGE RELEASE 2 February 2018 at 8:45

DNA has updated its medium-term financial targets in terms of EBITDA margin.

DNA's medium-term financial targets are:

• net sales growth faster than average market growth
• EBITDA margin of at least 32% (previously at least 30%)
• operative capital expenditure less than 15% of net sales (excluding spectrum licence payments)
• net debt/EBITDA ratio of less than 2.0, which may temporarily be exceeded if DNA finds appealing acquisition opportunities that allow the company to complement its offering in existing markets.

DNA's profit distribution policy: The company aims for a dividend payout ratio of around 70 to 90% of DNA's free cash flow to equity for the financial year, depending on the factors described below.

"DNA's first year as a listed company has been very successful in terms of achieving our financial goals. We reached our stated goal of EBITDA of 30%, and in 2017, the EBITDA percentage of net sales was 30.7% (up from 27.5% in 2016). Improvement to EBITDA was fuelled particularly by growth in net sales from services and improved cost-efficiency thanks to our modern network platforms. Moreover, our operative investments decreased to 15.0% of net sales. The net debt/EBITDA ratio was 1.12", states Jukka Leinonen, CEO of DNA.

Further information:
Jukka Leinonen, CEO, DNA Plc, tel. +358 (0)44 044 1000, [email protected]
Timo Karppinen, CFO, DNA Plc, tel. +358 (0)44 044 5007, [email protected]
Marja Mäkinen, Head of IR, DNA Plc, tel. +358 (0)44 044 1262, [email protected]
DNA Corporate Communications, tel. +358 (0)44 044 8000, [email protected]

DNA Plc is a Finnish telecommunications group providing high-quality voice, data and TV services for communication, entertainment and working. DNA is Finland's largest cable operator and the leading pay TV provider in both cable and terrestrial networks. For DNA, the key area for growth in corporate business is the new way of working, independent of time and place, facilitated by smart terminal devices, diverse communications services and rapid connections. In 2017, DNA recorded net sales of EUR 886 million and an operating profit of EUR 124 million. DNA has more than 3.9 million subscriptions in its fixed and mobile communications networks. The Group also includes DNA Store, Finland's largest retail chain selling mobile phones. DNA shares are listed on Nasdaq Helsinki Ltd. For further information, visit www.dna.fi or follow us on Twitter @DNA_fi and Facebook.