Goals and strategy

Bilia's financial goals are: 

1. Total yearly growth higher than 5 per cent during a business cycle

The annual growth for 2025, excluding negative currency effects, was 5 per cent. Total growth includes organic growth as well as growth from acquisitions and the divestment of operations. Total growth for the past five years amounted to 6.3 per cent.

2. Operating margin over 5 per cent during a business cycle

The operating margin in 2025 amounted to 3.2 per cent, and over
the past five years it averaged 4.3 per cent.

3. Net debt in relation to EBITDA, excluding IFRS 16, over time max 2.0 times

Net debt in relation to EBITDA amounted to 1.3 times in 2025, and over the
past five years it has ranged from 0.2 to 1.7 times.

4. Dividend share of at least 50 per cent of profit per share

The payout ratio in the Board’s dividend proposal for 2025 was 73 per cent,
and over the past five years it has averaged 64 per cent of earnings per
share.

Updated profitability targets for 2026

Bilia’s Service Business and Car Business are integrated operations that together form our strategy of being a full‑service provider throughout the vehicle life cycle. To enable effective strategic management and greater transparency, our previous profitability target of a 5 per cent operating margin for the Group was replaced in February 2026 with two new targets:

1. Operating margin of 14 per cent for the Service Business.
2. Return on capital employed, excluding IFRS 16, of 8 per cent for
the Car Business.

The Service Business focuses on efficiency and contributes a stable and significant share of the Group’s earnings, which makes a margin target appropriate. The Car Business ties up more capital than the Service Business, primarily through vehicle inventory. The new target for the Car Business increases the focus on capital efficiency while we continue to work on improving the operating margin. These two financial profitability targets essentially correspond to our previous target of a 5 per cent operating margin. For 2025, the operating margin for the Service Business amounted to 11.8 per cent, and the return on capital employed excluding IFRS 16 for the Car Business amounted to 4.2 per cent.

Bilia’s sustainability goals are:

Sustainable growth

Customer satisfaction should be 3 percentage points higher than the industry average for each brand and country.

There are clearly defined working methods in place as regards processes, work procedures and follow-up of noncompliance, which enables us to deal with customers in the best possible way. In 2024, customer satisfaction was 2.8 percentage points higher than the industry average for each brand and country. To achieve our target, we continue to work on improvement activities, especially for our newly acquired businesses.

The proportion of women in sales operations should exceed 30 percent

Bilia believes that balanced gender distribution has a positive effect both on the work environment and on profitability. We want to increase the proportion of women overall and are focusing initially on our sales operation. In 2024, the proportion of women in the sales operation decreased from 17 to 16 per cent. The main reason is that the proportion of women in acquired operations was at a lower level compared to Bilia

Circular Business Model

The usage of used spare parts related to damage cases should reach to 12 percent in Sweden by 2028.

The target is linked to our circular business model and aims to better utilise cars at the end of their usable life cycle. The target is for used spare parts for repair jobs in Sweden to reach 12 per cent by 2028. In 2024, the share of used spare parts was 7.5 per cent, compared to 7.0 per cent in the previous year. From 2024, the measurement is based on the sales value of spare parts and the previous year has been recalculated for comparability. A target will be set for our Norwegian operations when statistics are available.

Caring for people

The proportion of engaged employees should exceed the benchmark.

Proportion of engaged and proud employees is an important component of our internal strategy to have proud employees and satisfied customers. In 2024, we also had a higher percentage of engaged employees than the benchmark. In connection with the launch of BiliaPulsen in Sweden, different
indexes are used in our countries. Sweden: 8.2 compared to benchmark 7.9. Norway and Western Europe: 83 compared to benchmark 81.

Care for the environment

Contribute to lower climate impact for Bilia’s customers through our products and services.

We will provide all our customers with clear and transparent information on how they can reduce their climate impact through their choice of car and services. In 2024, this was done via bilia.se as well as social media and a digital magazine. This included information on the importance of wheel alignment and tyre pressure, as well as how to extend the life of a car with
regular servicing.

Reduced environmental impact caused by our own operations.

The identified activities are related to fossil-free internal transport vehicles for spare parts and accessories, reduced energy use in buildings, increased in-house renewable electricity production, and phasing out fossil energy sources in heating and paint booths.