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.
(During 2023 the Group's operations were organized in three business areas. Fom the first quarter of 2024 Nolato conducts the Group’s operations via two business areas – Medical Solutions and Engineered Solutions.)Integrated Solutions sales amounted to SEK 1,379 million (3,311); adjusted for currency and acquisitions, sales decreased by some 60%. Most consumer electronics customers were affected by reduced demand from end-customers, but it was a change in the sourcing strategy of a previously significant customer that primarily resulted in lower volumes. EMC sales totaled SEK 674 million (673), SEK 17 million of which was attributable to acquisitions. Increased market share in automotive made a positive contribution to growth, while sluggish activity and inventory adjustments in 5G roll-out had a significant adverse impact on telecom.
Industrial Solutions sales amounted to SEK 2,871 million (2,618); adjusted for currency, sales increased by 4%. Automotive volumes increased, while supply chain disruptions had less of an impact than previously. The charging on of cost increases has gradually contributed less to the increase in sales. Demand for products in the consumer discretionary sector was slightly lower, and this is expected to continue in the next quarter due to the weak economy and restrained consumer spending.
Nolato has introduced long-term sustainable development goals covering social responsibility, environmental responsibility and business benefits. These goals are linked to the UN’s Sustainable Development Goals and the 2030 Agenda.
The background and outcomes of the goals are described in the website's section for responsible business.