The target for the EBITA margin is to exceed 10% over a business cycle.
The target is to achieve cash conversion of more than 75% of EBIT over a business cycle, measured as the ratio of cash flow after investment to EBIT.
The target for the equity/assets ratio is to exceed 35% over a business cycle.
Nolato aims to exceed the level of growth within each market segment.
The sales growth in 2022 was 8%, adjusted for currency. Long-term volume growth for this business area’s market segments and applications is assessed to remain around 4–5%. The surgery area experienced good growth, while in vitro diagnostics (IVD) volumes were lower due to pandemic-related inventory adjustments. The charging on of higher costs contributed to higher sales.
The sales in 2022 decreased by some 46%, adjusted for currency, due to low Vaporiser Heating Products (VHPs) volumes following Russia’s invasion of Ukraine, a change in a customer’s sourcing strategy, and the halt in sales for much of the fourth quarter due to the lack of a production license in China. EMC sales increased considerably through good growth in telecom and significant relative growth in automotive.
The sales growth in 2022 was 6%, adjusted for currency. Volumes decreased somewhat, although the charging on of higher costs contributed positively. Demand was solid in most market areas, but deliveries of products to areas in the consumer discretionary sector were lower towards the end of the year.
Nolato has introduced long-term sustainable development targets covering social responsibility, environmental responsibility and business benefits. These targets are linked to the UN’s Sustainable Development Goals and the 2030 Agenda.
The background and outcomes of the targets are described in detail in the annual report for 2022 on pages 44 and 122 et seq.