1.7 Strategic ambition and financial goals Step Up!
In summary, our ambition with the Step Up! strategy is to structurally increase the pace at which Nedap develops. We aim to achieve this by combining the market focus and entrepreneurship of our people in the dedicated teams with the overall strength of Nedap. We apply the resulting competitive strength in a strategic way to capture or expand market leadership in the key markets in which we operate.
We take a dynamic approach to our strategy, working simultaneously to adjust and refine it for Nedap and the individual key markets, and ensure it is implemented effectively. This enables us to respond swiftly to new technological and market developments and the opportunities they create. Thanks to our strategic decisions, we are much better positioned to make the most of our propositions’ potential.
The aim is to generate solid financial results, enabling us to maintain our long-term perspective and continue to successfully create and market Technology for Life.
The Step Up! strategic plan sets the following financial targets towards 2025:
Revenue that develops towards annual high-single-digit autonomous growth.
An operating margin, excluding one-off items, that rises towards 15%.
Return on invested capital (ROIC) that outgrows profitability.
Safeguarding a long-term perspective and enabling a focus on growth and innovation hinges on a strong financial position, i.e. a financial position that meets the following criteria:
A solvency rate of at least 50% and net debt/EBITDA of a maximum of 1.5. Temporary deviation from this target is possible for strategic reasons.
Profits are paid out to shareholders, after deduction of the amount needed for investments in profitable growth and the intended financial structure.