OUR BUSINESS

Targets and outcome

Financial targets

Our financial targets ensure the Group is managed with the aim of achieving healthy earnings, generating adequate cash flow and keeping financial risk at an acceptable level. These financial targets reflect Nolato’s strategic focus on a well-balanced Group structure with three business areas and advanced market positions, which ensures the financial flexibility to make new acquisitions and provide good potential dividends for shareholders.

EBITA

The target for the EBITA margin is to exceed 10% over a business cycle.

10%

Target

11,4%

Outcome 2020

11,2%

five-year average

Cash conversion

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.

87%

Outcome 2020

71%

five-year average

>75%

Target

Equity/assets ratio

The target for the equity/assets ratio is to exceed 35% over a business cycle.

47%

FIVE-YEAR Target

>35%

TARGET

43%

OUTCOME 2020

Growth target

 

OUTCOME 2020

Nolato aims to exceed the level of growth within each market segment.

7%

Medical Solutions

23%

integrated solutions

– 1%

industrial solutions

Medical Solutions

The sales growth in 2020 was 7%, adjusted for currency and acquisitions. Long-term volume growth for this business area’s market segments and applications is assessed to remain around 4–5%. Growth in production volume was strong, primarily in areas that have seen increased demand as a result of the pandemic, including diagnostics, while the surgery segment was negatively affected.

Integrated Solutions

The sales growth in 2020 was an impressive 23% adjusted for currency and acquisitions, mainly driven by high demand in Vaporiser Heating Products (VHP). EMC sales were solid, while volumes for mobile phones were weak.

Industrial Solutions

The sales growth in 2020 was –1%, adjusted for currency and acquisitions. Demand from automotive-sector customers was heavily impacted by their halt in operations in the second quarter but has gradually increased since.

Sustainability targets

Nolato has introduced 10 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.

 

Energy

Energy usage is to be cut by 55% by 2025 compared with the average for 2011–2012. 

– 55%

Target 2025

– 9%

Outcome 2020

Climate

Carbon dioxide emissions are to be cut by 80% by 2025 compared with the average for 2011–2012. The outcome 2020 is affected by increased production in countries with fossil-­based energy systems.

– 80%

Target 2025

+ 16%

Outcome 2020