Nolato (NOLA) CMD 2025 summary

Strategic direction and business model

• Transitioned to a diversified, global solutions provider with a focus on sustainability, innovation, and end-to-end offerings across medical and engineered solutions, leveraging a strong global footprint in Europe, Asia, and North America.

• Merged business areas and established a group-wide Technical Design Center network to enhance innovation, electronics integration, and faster time-to-market.

• Signed a major long-term agreement to supply medical devices for obesity and diabetes treatment, involving SEK 600 million investment and over 200 new jobs.

• Business model emphasizes value creation for customers, employees, shareholders, and society, with a strong commitment to sustainability and responsible business conduct.

• Continued acquisition strategy and value chain expansion to add new materials, services, and technologies for both existing and new customers.

Financial targets and performance

• Set new financial targets: organic growth above 8%, EBITA margin above 12% (up from 10%), and return on capital employed above 15% over a business cycle.

• 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.

• Medical Solutions showed stable growth and margin improvement, with Q4 2024 EBITA margin at 11.2%; Engineered Solutions improved to 9.2% margin as VHP effects phased out.

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

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

Growth drivers and market trends

• Benefiting from mega trends: globalization, digitalization, aging population, electrification, and increased focus on sustainability and corporate responsibility.

• Customers are regionalizing supply chains, outsourcing more, and demanding faster time-to-market.

• Materials business expanding from telecom into automotive, aerospace, and defense, with premium margins and global reach.

• Medical Solutions targets high-growth segments like drug delivery, diagnostics, and complex medical devices, with a focus on value chain expansion and embedded electronics.

• Engineered Solutions emphasizes value chain expansion, embedded electronics, and operational excellence across diversified sectors.