Nolato (NOLA) CMD 2025 summary

Strategic direction and business model

• Transitioned to a diversified, global solutions provider with two main business areas: Medical Solutions and Engineered Solutions, focusing on sustainability and innovation across Europe, Asia, and North America.

• Merged business units and established a group-wide Technical Design Center (TDC) network to enhance electronics integration, design for manufacturing, and customer innovation.

• Supports global customers with end-to-end development, industrialization, and production, leveraging a strong global footprint and long-term partnerships.

• Emphasizes sustainability and corporate responsibility as core differentiators, with increasing customer demand for greener solutions.

• Pursues value chain expansion, moving from component supply to higher-value assemblies and contract manufacturing, especially in Medical Solutions.

Financial targets and performance

• Set new financial targets: organic growth above 8%, EBITA margin above 12%, and return on capital employed above 15% over a business cycle, up from previous lower targets.

• Achieved steady sales growth, especially in Medical Solutions, with margin improvements driven by cost-out initiatives, efficiency programs, and strategic pricing.

• Maintains a strong financial position with low net financial liability (0.4x EBITDA), SEK 3.4 billion in long-term credit lines, and capex plans of SEK 800–850 million for 2025.

• Working capital normalized post-VHP, now at 13.8% of sales; long-term capex target set at 5% of sales.

• Dividend policy proposes dividends exceeding 50% of profit after tax, considering long-term needs.

Growth initiatives and business development

• Signed a major long-term contract in Hungary, investing SEK 600 million to expand capacity, expected to generate SEK 700 million in annual sales and over 200 new jobs.

• Active acquisition strategy now focuses on adding new technologies and services, including electronics, metals, and drug handling.

• Technical Design Center (TDC) enables faster, more innovative product development, supporting customers from concept to industrialization.

• Growth and margin drivers include market expansion, new technologies, cost efficiency, and increased utilization, especially in China.

• Organization and global setup positioned for accelerated growth and increased margins, supported by strong financials and sustainability leadership.