Inside Information: Modulight's Board Of Directors Has Approved Updated Financial Targets And Strategy For 2023–2025

Modulight Corporation, Company Release, Insider Information, 29 November 2022, at 8:32 a.m. Finnish Time

Modulight's target is strong annual growth and a return to strong profitability during the strategy period 2023–2025. Modulight's strategy continues to focus on the company's unique laser technology expertise and expanding its offering to new indications and applications. The strategy is also to take advantage of the state-of-the-art technology production capacity brought about by the investment program. 
 
In its updated go-to-market strategy, Modulight focuses on seeking growth especially in the US market, where the company plans to start local operations. In Europe and Asia, the company's go-to-market strategy is based on selected partnerships. Growth is also strongly sought through SaaS-based business models, such as the pay per treatment model.
 
Modulight focuses especially on projects where the company can create value for its customers, for example, by bringing their products to market faster, making their operations more efficient in general, and improving the efficacy and accessibility of laser-based solutions. In order to achieve its growth targets, the company will focus on product development pipeline projects with high market potential in the short-term.
 
One of Modulight's main business goals is to bring at least three projects in the current product development pipeline to the commercial roll out phase as soon as possible. In addition, the company aims to develop its commercial and operational expertise as well as the ESG, governance and reporting capabilities.
 
Sustainability is at the core of Modulight's operations, as the company's offering is based on promoting human health and well-being. Modulight has defined the material areas of corporate responsibility and created a development program based on them. In terms of environmental responsibility, Modulight has set a goal of carbon-neutral business by 2025.
 
"I am proud that Modulight has grown profitably over the past decade, and despite the changes in the market situation, we have purposefully continued to invest in our production capacity and to further develop our offering and operations. We have now completed intensive work with the aim of updating our go-to-market strategy to support profitable growth. Based on the work done, we are more convinced than ever that the investments we have made have been in the right direction. We now have a good game plan to achieve strong growth and clear strategic projects to focus on implementing our strategy in our organization," says Seppo Orsila, CEO of Modulight.

Modulight's strategic key factors

1.Geographical expansion
2.Expansionof the offering to new indications and applications
3.New business models
4.Commercial and operational excellence5.State-of-the-art laser technology expertise

Business targets

Modulight's main business targets for the strategy period 2023–2025 are:
- at least three commercial roll outs of projects in the current R&D pipeline
- local operations in the US and focusing on selected partnerships in Europe and Asia
- developing pay per treatment model and other SaaS-based business models
- improving treatment efficacy and accessibility with cloud-based services
- carbon-neutral operations in 2025

Strategic programs
 
Modulight implements its strategy especially through the following programs:
 
- sales, marketing and operations development
- cloud technology and cloud-based services development
- productizing platform devices for various indications and applications
- technology development based on the completed investment program
- development of ESG, governance and reporting
 
Financial targets and dividend policy
 
Modulight's financial target is strong annual growth and a return to strong profitability during the strategy period 2023–2025. The company's dividend policy remains unchanged.
 
- Growth: strong annual revenue growth
- Profitability: return to strong profitability in terms of EBITDA-%
- Dividend policy: all returns invested in organic and inorganic growth, and the company distributes little or no dividends