1.5 Strategic ambition & financial goals

We aim for structural growth to secure a leading position in our markets and create long-term value. In this section, we lay out our objectives for the period 2025-2028 as announced at Nedap’s Capital Markets Day in 2024. One of the key principles of Step Up! is that we continuously and simultaneously work on strategy development and implementation. Our agility enables us to lead technical transformations and meet evolving market needs. At the same time, we have set a clear direction for our company and committed to ambitious targets for organic revenue growth, operating margin, and return on invested capital (ROIC). These targets are supported by our Create & Scale growth strategy. We report on our 2025 performance in section 2.2 Progress on our strategy.

During Nedap’s Capital Markets Day in 2024, we announced the following financial objectives for the period 2025-2028:

• Revenue growth
  Achieve high-single-digit, organic revenue growth.

• Operating margin
  Grow the operating margin, excluding one-off items, toward the mid-teens range.

• ROIC
  Attain a return on invested capital of at least 30%.

Financial position

We rely on our financial strength to make the investments in our workforce, innovation, and commercial capabilities needed to achieve market leadership and deliver long-term value for people, the environment, and our customers. We strive for our financial position to meet the following criteria:

• Solvency rate of at least 50% and a net debt-to-EBITDA ratio of no more than 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.