Growth strategy

Nobia’s growth strategy is conditional on investments in both corporate acquisitions and in existing businesses. Nobia evaluates and assesses investments based on the cash-related repayment period and the return on invested capital. Return on invested capital is a decisive factor for the evaluation of an acquisition.

The target is for Nobia to achieve an operating margin (EBIT) of 10 per cent at Group level over a business cycle, without ever hindering efforts to take advantage of business opportunities in operations with a high capital-turnover rate and return on capital, but with a relatively low profit margin.

The business units are governed by targets for net sales, operating profit, operating margin and tied-up capital. The target figures are based on past outcomes, comparative data from benchmarking and taking into account external factors, such as the economic climate. The margin targets for some business operations can be lowered without adversely affecting the Group’s return on capital. This applies, for example, to certain sales of accessories with low value-added and a high rate of capital turnover.