2020 was a period of great change for Neles. Reborn as an independent flow control company on July 1, 2020, we ensured an uninterrupted business transition and maintained profitability despite the challenging global situation.
Exceptional year for business in a mixed market
We started the year with a strong order backlog and a positive business outlook, and we reacted quickly when the pandemic hit globally. From the start, our priority was to protect our employees and customer deliveries. We also took early resolute action to ensure profitability and cash generation in preparation for all scenarios.
Thanks to our proactive measures, we kept our profitability and cash flows at a good level despite the reduced orders and sales. Our adjusted EBITA for the full year was a solid 14.8% of sales.
Our new technology center in Jiaxing, China, started its operations in July and was fully operational throughout the second half of 2020.
We achieved remarkable results in our customer survey in 2020 as our customers gave us an overall Net Promoter Score (NPS) of 38, this is a significant improvement from last year’s score of 29.
Strategy for profitable growth
Prior to the demerger, we defined the new strategy and financial targets for Neles, which were presented during our first, fully virtual Capital Markets Day in May. Our main ambition is to grow faster than the market by expanding our offering and diversifying the valves and valve controls businesses to new customer segments. We aim to do this while maintaining the best profitability.
With this solid foundation, we can continue ‘Reinventing Reliability’ together for a successful future.
From CEO's review