Strategy and long-term financial targets Our strategy focuses on driving sustainable growth and global leadership in weather, environmental, and industrial measurements. Through our products and technologies, we enable business-critical decisions and operations for our customers. With climate action and technology leadership at our core, we refined our purpose and strategic priorities during 2023. We aim to reinforce our positive impact on the challenges of both our customers and the planet, and to drive sustainable growth.We adjusted our purpose to bring a stronger emphasis on our active role in enabling data-driven climate action. Our new purpose is Taking every measure for the planet. The purpose was updated to communicate how our measurement technologies provide customers with relevant data to improve their operations and create a positive climate impact, and to show our full commitment to sustainability. We build our strategy on four main success driversCustomer understanding and application know-howOur measurement solutions are based on a thorough understanding of our customers’ needs in diverse applications from meteorology and renewable energy to industrial processes and life science.We continuously collaborate with our customers and partners to meet their measurement requirements and enable climate action.Product and technology leadershipTo develop our technology leadership position, we invest strongly in our growth markets that range from sensors to digital solutions. We make significant investments into R&D. In 2023, Vaisala’s R&D investments were 12.5% of net sales. We continuously develop our innovation process and practices.Excellence in supply chainOur offering includes hundreds of product families and thousands of products, and we serve customers in over 150 countries. As different applications require different products and solutions, our products are almost always made to order. This requires excellence and agility throughout our supply chain and operations.We continuously develop scalable ways of working and adopt new technologies like automated and data-driven smart factory.Purpose-driven culture and talentOur motivated and talented employees are a key factor behind our success, and we continue developing our culture. We aim to enhance the well-being and personal growth of our people and develop a diverse and inclusive community to support our business and our positive impact on the planet.We encourage pioneering, curious, and committed cultural behaviors and have established employee resource groups to support empowerment and inclusivity at work.Strategic priorities to drive scalable and sustainable growthTo complement the success drivers of our current strategy, we have identified four strategic priorities for execution to both sustain our market leadership and expand into new markets with growth opportunities:We continue our growth in industrial measurements with breakthrough technologies. We grow by expanding in energy transition as well as building recurring revenue in data business. We drive profitability as a global leader in weather systems. Also, we simplify and scale our operations for greater impact and efficiency. Long-term financial targets Our long-term financial targets are:Average sales growth 7% (earlier 7%) Systematically improving EBITA % (earlier EBIT 15%)Maintain strong cash conversion over time (new target) Vaisala does not consider the long-term financial targets as market guidance for any given year. I
