Nedap (NEDAP) CMD 2024 summary

Strategy and future plans

• Shifted from fixed multi-year plans to a continuous strategy process to adapt to volatile markets and intensifying competition, especially in SaaS with 'winner takes all' dynamics.

• Pursues market leadership in Healthcare, Livestock, Retail, and Security, leveraging digital twin technology as a core differentiator.

• Growth strategy centers on 'Create & Scale'—driving organic growth by innovating and scaling solutions, leveraging a structured CSC methodology.

• Focused investments in R&D and commercial teams to boost innovation and customer outreach, with talent development as a key enabler.

• Leverages decades of expertise to address industry challenges like sustainability and compliance.

Financial guidance and performance (2025–2028)

• Targets high single-digit organic revenue growth annually and operating margin moving toward mid-teens.

• Sets a return on invested capital (ROIC) goal of at least 30%.

• Achieved €100 million in annual recurring SaaS revenue in 2024, with recurring revenue now a larger share of total revenue.

• Achieved 8% compound annual organic revenue growth and 11% CAGR in earnings per share from 2019 to 2023.

• Gross margin improved from 63% in 2019 to 69% in 2023, supporting high R&D investment (18% of revenue in 2023).

Business developments and market outlook

• Healthcare: Ons Suite leads in elderly and disability care, with MediKIT targeting GPs; focus on network care and AI-driven solutions.

• Security: Strong in access control, serving 2,500+ organizations in 83+ countries; expanding SaaS and cloud-based solutions.

• Retail: Market leader in RFID digital twin platforms, aiming to double RFID adoption in five years by focusing on large retailers.

• Livestock: Global leader in cow monitoring, with 40% market share and 5.5 million connected cows; growth driven by rising milk demand and technology adoption.

• Sustainability: Committed to SBTi, net-zero operations by 2030, and supporting customers' sustainable business models.