FULLTEXT DEL 1 AV 2
Årsredovisning 2023
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2023
Annual and
Sustainability
Report
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Highlights 2023 ................................................................................................ 1
Cavotec in brief ................................................................................................. 2
CEO’s message ................................................................................................ 4
Market drivers .................................................................................................... 6
Our business model ........................................................................................ 8
Strategic priorities ............................................................................................. 9
Financial performance ................................................................................. 12
Offering and introduction to the segments ............................................. 14
Segment Ports & Maritime .......................................................................... 16
Segment Industry .......................................................................................... 20
Sustainability report ...................................................................................... 24
Remuneration report ..................................................................................... 38
Corporate governance report ..................................................................... 46
Board of Directors ............................................................................... 52
Cavotec Management Team ............................................................. 54
Consolidated financial statements ............................................................ 56
Risk management ......................................................................................... 82
Statutory financial statements .................................................................... 92
Financial definitions ................................................................................... 101
The share ...................................................................................................... 102
Shareholder information ........................................................................... 104
Cavotec’s history in brief .......................................................................... 105
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Annual and Sustainability Report 2023 | Cavotec 1
HIGHLIGHTS 2023 |
EUR 000s 2023 2022 2021 2020
Revenue 180,734 147,849 115,794 115,342
Order backlog 123,562 147,207 98,893 57,773
EBIT 7,227 (4,506) (747) 37
EBIT margin 4.0% -3.0% -0.6% 0.0%
Net profit/(loss) for the period 180 (3,170) (1,211) (2,973)
Basic and diluted earnings per share, EUR 0.002 (0.034) (0.013) (0.031)
Operating cash flow 1,933 (5,485) 8,654 15,501
Net debt (18,638) (30,328) (19,630) (15,264)
Leverage ratio 1.29x 12.5x 3.20x 0.98x
EBIT, EUR million
8
6
4
2
0
(2)
(4)
(6)
2020 2021 2022 2023
Revenue, EUR million
200
180
160
140
120
100
80
60
40
20
0
2020 2021 2022 2023
Operating cash flow, EUR million
2020 2021 2022 2023
20
15
10
5
0
(5)
(10)
Improved financial performance and key
business wins
Through clear strategic priorities, Cavotec has improved its financial position and
performance during 2023. Cavotec has also won several important contracts with
both new and existing customers.
Key events in 2023
• Order valued at EUR 6.65 million
from one of the world’s largest
shipping companies for shore
power systems
• Long-term service agreement
signed with COSCO Group
• Order signed for mooring units
with North American seaway
operator worth EUR 6.4 million
• Directed new issue of shares
of SEK 165 million
• Joakim Wahlquist appointed
new CFO
Key events after the end of 2023
• Two-year service agreement
signed with APM Terminals at Port
of Tanger
• Shore power retrofit order signed
with major European shipping line
worth USD 5.7 million
• Three-year service agreement
signed for shore power systems in
a large North American port
• The world’s first ultra-fast 3 MW
charging system for battery-
powered heavy-duty vehicles in
service at a site in Australia
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2 Cavotec | Annual and Sustainability Report 2023
| CAVOTEC IN BRIEF
180.7
Revenue, EUR million
7.2
EBIT, EUR million
123.6
Order backlog, EUR million
80+
Number of countries
where Cavotec’s systems
are installed
664
Employees
Backed by close to 50 years of
experience, our systems ensure safe,
efficient and sustainable operations
for a wide variety of customers and
applications worldwide. Our offering
includes automated mooring, shore power,
motorised reels, crane electrification and
charging solutions.
We enable our customers to optimise
productivity, minimise risk to personnel
and equipment, and reduce environmental
impact. Our unique technologies and
engineering expertise combined with a
worldwide service offering maximise our
customers’ profitability and sustainability.
In this way, we help their businesses
grow and accelerate progress towards a
sustainable future.
Cavotec is a leading cleantech company that designs
and delivers connection and electrification solutions to enable
the decarbonisation of ports and industrial applications.
Cavotec in brief
What
We connect the future.
Why
We want to contribute to a world that
is cleaner, safer and more efficient
by providing innovative connection
solutions for ships, ports, and
industrial equipment today.
How
We thrive by shaping future
expectations in the areas in which
we are active. Our credibility derives
from our expertise and dedication
to innovation and world-class
operations. Our success rests on our
core values: Integrity, Accountability,
Performance, and Teamwork.
What Why How
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Annual and Sustainability Report 2023 | Cavotec 3
Annual and Sustainability Report 2023 | Cavotec 3
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4 Cavotec | Annual and Sustainability Report 2023
The growth of 22.2% in 2023 to EUR
180.7 million and the turnaround of
EBIT to EUR 7.2 million from -4.5 million
clearly show that we are on the right
track with the transformation of Cavotec.
We work with clear strategic priorities
in six areas with comprehensive
change programs. We turn over
basically all stones in the group and
improve routines and processes. The
performance in 2023 show that we have
come a long way but we are far from
done.
One of the externally more visible
efforts in 2023 is the review of the
order backlog with the goal of securing
profitable growth. The decline of 16.1%
to EUR 123.6 million reflects both a
normalisation of the order backlog and
an extraordinary high order intake in
2022. We strongly believe the review
is a key strategic move and a driver
for continued improved profitability
going forward. Some other driving
factors for the improved profitability are
the increased volumes along with the
determined work to increase production
efficiency, enhance our sales processes
and sharpen our service offering. In
2023, the Ports & Maritime segment
was the most successful with these new
ways of working, but we expect also the
Industry segment to make significant
progress in this area going forward.
Strong interest in our solutions
We meet a steady stream of customer
inquiries and strong interest in our
electrification solutions and service
offering. The demand is driven by the
increasingly urgent need to reduce the
world’s emissions of greenhouse gases,
to reduce noise in ports and cruise
terminals and to improve customers’
operational efficiency.
In 2023, we announced a few
customers wins that prove our leading
position in, among other things,
automatic vacuum mooring and shore
power. We signed a contract worth
EUR 6.65 million with one of the
world’s largest shipping lines to supply
shore power equipment to newbuild
container ships. At the end of the
year, we announced an order with an
existing North American customer for
an additional six vacuum mooring units
to be installed at locks in a seaway
system. The order is valued to EUR
6.5 million. We kicked off 2024 by
announcing a contract worth USD 5.7
million to retrofit vessels with shore
power solutions for a major European
shipping line.
Attractive service offering
Yet another of our changes in 2023
includes the decision to increase the
focus on our service offering, which has
already paid off. We have announced
a long-term service agreement with
COSCO Group, one of the world’s
largest shipping companies. Based
on the new agreement, we provide
maintenance for more than 60 ocean-
going vessels equipped with our shore
power systems. In 2024, we have so
far announced a two-year service
agreement with APM Terminals at Port
of Tanger. We will be servicing our 45
vacuum mooring master units and 31
power units installed at the port. In
Creating a solid base for profitable growth
Our clear strategic priorities and change program have proven effective and our
financial results and position have improved significantly in 2023. We have also made
key business wins with important contracts globally. Although the macroeconomic
situation remains uncertain, there is strong demand for our electrification solutions
driven by national regulations and the need to reduce emissions.
| CEO’S MESSAGE
“ We ended 2023 with high
business activity and
important contracts that
give us a good basis
for profitable growth.”
David Pagels,
CEO
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Annual and Sustainability Report 2023 | Cavotec 5
CEO’S MESSAGE |
this way, the customer’s operational
efficiency is significantly improved
and the performance of the products
is optimised. A special contract is
the announced three-year service
agreement signed for shore power
systems in a large North American port.
Here we will assist in the plug in and
plug out procedures for vessels which
will contribute to improved operational
efficiency in the port.
Another strategically important area for
us that we will increase our focus on
in 2024 is product development since
we are determined to continue being a
world-leading player in electrification. A
good example of our leadership is our
ultra-fast 3MW charger – the world’s
first and most powerful – which is in full
operation at a mining site in Australia.
Developed by the Industry segment
during 2023, it is now included in a
solution that charges a prototype 240-
ton electric haul truck in just 30
minutes. This technological advance
paves the way for the electrification
of heavy-duty vehicles and greatly
reduced emissions in critical industries
worldwide.
Strengthened financial position
It is gratifying to see how our improved
profitability and financial management
have led to a significantly improved
cash flow and strengthened financial
position. Operating cash flow increased
to EUR 1.9 million from EUR -5.5 million
and net debt decreased from EUR 30.3
million to EUR 18.6 during 2023. Our
strengthened financial position means
that our financing costs will be lower
going forward.
Outlook
We ended 2023 with high business
activity and important contracts that
give us a good basis for profitable
growth. Perhaps the most important
thing for us in 2024 is the momentum
we have and the commitment that I
see everywhere in Cavotec. Although
the macroeconomic situation remains
uncertain, we meet a continued strong
interest from both existing and new
customers for our leading electrification
solutions. I am confident that Cavotec
will continue to be a key player in
the transition to a more sustainable,
emission-free world also in the coming
years.
David Pagels
CEO
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6 Cavotec | Annual and Sustainability Report 2023
We have gained deep insights into our market and its driving forces due to our close
to 50 years of experience and long-term customer relationships. On a day-to-day basis,
this is about being able to understand, anticipate and adapt to the changing needs
and behaviours of our market. This in turn enables us to deepen existing customer
relationships, win new customers and continue to strengthen our market position.
Climate
The climate is the most important issue
of our time. In order to reach the goals
of the Paris Agreement, it is required
that all industries and businesses
contribute by reducing their emissions.
The shipping sector accounted for
2.89% of global greenhouse gas
emissions in 2018 according to the
International Maritime Organization.
When we look at the mining sector, it
is responsible for between 4 and 7% of
the world’s greenhouse gas emissions
according to an article published by
McKinsey & Co in 2020.
The urgency of reducing carbon
emissions is increasingly a priority
for a growing number of industries,
including the shipping and mining
sectors. This means that interest in
Cavotec’s products and services
increases because they reduce
customers´ carbon footprint and help
them contribute to reaching the Paris
Agreement.
Electrification
A critical part of efforts to fullfil the
Paris Agreement is electrification and
the transition to fossil-free energy.
The electrification of processes that
have until now been performed with
fossil fuels is ongoing throughout
many sectors, not least in shipping
and mining. Electrification not only
contributes to the decarbonisation, it
can also generate substantial energy
savings due to greater efficiency and
enhance air quality.
The electrification of vessels, cranes
and other industrial equipment
are central parts of Cavotec’s
offering. Shipping companies and
shipyards, for example, are becoming
increasingly interested in the shore
power solutions that enable ships to
switch off the diesel generators
at berth.
Noise pollution
Awareness is increasing globally
about problems associated with noise
pollution both on land and in the
seas. Noise pollution affects many
people on a daily basis and can
cause health problems such as high
blood pressure, heart disease, and
stress. Today we also know that noise
pollution can affect animals on land
and in the seas.
For many sectors, it is important to
reduce noise in the workplace to
improve the health of employees
and increase attractiveness as an
employer. Here, Cavotec contributes
through its products and solutions
that improve the sound environments
in ports and mines, for example.
| MARKET DRIVERS
Global market trends create new opportunities for us
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Annual and Sustainability Report 2023 | Cavotec 7
Safety
Occupational injuries and work-
related ill health are high on the
sustainability agenda of many
companies today. Many companies
have zero visions when it comes to
occupational injuries and invest in
equipment and processes that reduce
risks to employees.
For Cavotec, safe products and
solutions that improve the workplace
environment have always been an
important driving force and key
competitive advantage. By automating
previously manual processes, such as
mooring, the risk of injury to sailors
and dock workers is significantly
reduced.
Regulation
In many parts of the world, demands
on the industry to reduce its negative
climate and environmental impact
are increasing. Requirements are
being made by international bodies
such as the International Maritime
Organization and supranational
authorities such as the EU. Demands
are also increasing from local
authorities that want to lower diesel
emissions and noise levels in and
around port areas, for example.
Stakeholders such as investors and
lenders are also pushing companies
to become more sustainable.
Increased regulations drive demand
for Cavotec’s products and services.
For Cavotec, this creates increased
opportunities to reach new customers
and strengthen its market position in
sectors that are critical for industry
and society.
Global trade
Global trade means that many
different raw materials and products
are transported over great distances
in the world. About 90% of global
trade is today seaborne according
to the International Maritime
Organization. Efficient and well-
performing value chains are central
to the functioning of global trading
systems.
End-users of Cavotec’s solutions are
central to the efficient functioning
of global trade and they require
constant service support to maintain
efficiency and delivery reliability.
Cavotec is therefore a core part of
its customers´ value chains, which is
an important reason for the long and
close customer relationships.
MARKET DRIVERS |
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8 Cavotec | Annual and Sustainability Report 2023
Key resources
Skilled employees
Global reach
49 years of experience and
innovation
Customers
Ports and port operators
Shipbuilder and shipping
companies
Mining operators
Manufactures of mining
machinery and mobile cranes
Our value proposition
We provide safe and efficient
electrification solutions and
services that decarbonise ports,
vessels and heavy-duty vehicles.
Worldwide, the need to reduce greenhouse gas emissions grow. With our
solutions and services, emissions in port, mines and other industrial sites are
reduced while workplaces become safer.
With close to 50 years of experience
and innovation, we have established
ourselves as a preferred supplier and
service provider to leading companies
in above all the marine and mining
industries. By enabling the electrification
of ships, port equipment, and mining
machinery, we support our customers to
reduce greenhouse gas emissions and
also noise pollution. The need to reduce
the environmental impact is driven from
several different stakeholders, including
supranational bodies and local authorities.
Our solutions also contribute to increasing
the safety of professional groups such as
sailors, dock workers and miners.
Customers in critical infrastructure
We provide our solutions through our two
business segments: Ports & Maritime and
Industry. Our services organisation provide
maintenance, controls, spare parts and
repairs to extend equipment lifespan.
Within Ports & Maritime, a significant
proportion of sales are large projects such
as electrically powered vacuum mooring
systems and motorised reels for container
cranes. Sales of reels take place through
OEMs that install Cavotec’s products
in port cranes, for example. The end
customers, typically ports and shipping
companies, provide OEMs with product
and system specifications.
For Industry, mining machinery OEMs
account for the majority of revenue. Sales
mainly comprise of critical components in
larger volumes.
Critical solutions for our customers
Our business is characterised by close,
long-term customer relationships.
Because part of our sales are to OEMs, it
is important that we also maintain close
relationships with the end customers,
since they define the specifications. The
end customers may also be those who
purchase maintenance service and spare
parts directly from us.
Several of our products represent a small
value of the final product, but they are
critical components of the operation.
Downtime can create substantial cost,
so customers and end customers are
meticulous in their specifications, and
value service excellence.
Global supply organisation
Assembly of our products takes place in
plants, often located in the same region
as the customers. Through our service
organization and its local presence, we are
geographically close to our customers.
Our most important resource is our over
600 employees worldwide and their
collective experience. Together with our
customers and partners, we constantly
develop our offering and create new
innovative solutions.
| OUR BUSINESS MODEL
We target the global need to decarbonise
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Annual and Sustainability Report 2023 | Cavotec 9
Clear strategic priorities for profitable growth
Our overall goal is profitable growth. Cavotec is in a transformation phase in which
clear strategic priorities are being applied to create the necessary conditions to
achieve profitable growth. The implementation of these strategic priorities began in
2021 and we have made significant progress in our transformation journey.
To reach our overall goal, we must
execute on each one of our strategic
priorities because they are interdependent.
We only have satisfied customers if
we have motivated employees and
efficient processes. We can only achieve
operational excellence if we have good
cost control. Without innovation as a
behaviour, we cannot change processes
and constantly improve our offer. Our
culture and values must embrace change
and the will to work towards our overall
goal of profitable growth.
Customer focus
With a strong customer focus, we strive
to always create value not only for us and
our customers, but also for our customers’
customers. In this way, we strengthen and
ensure long-term and close customer
relationships. With a large installed base
worldwide, we have significant potential
for upselling, not least of our services
offering. At the same time, we have
dialogues with new customers and the
customers’ customers who, through their
specifications, ensure that our leading
products become part of their orders.
Among the changes we have implemented
are better processes for pricing and
clear responsibilities for following up on
customer projects.
Operational excellence
We must continuously improve
effectiveness and efficiency throughout
the organisation and value chain. This is
done by smart use of new technologies,
platforms and capabilities that drive
productivity in combination with new
routines and processes that improve our
ways of working.
An example of operational excellence is
our new assembly facility in India which will
service the significant local Indian market.
With this new unit, we are leveraging
India’s robust manufacturing capabilities
and cost-effective resources including
competitive suppliers, while increasing our
overall capacity.
Cost control
Cost control does not only relate to
monitoring costs. It is a way of thinking that
encompasses our ways of working and
our supplier and customer relationships. It
is about what resources we should have,
when and where they should be applied.
To improve cost control throughout the
organization, we have introduced cost
optimisation and sourcing cost reduction
programs along with the renegotiation of
contracts during 2023.
Culture and values
Our success rests on culture and
core values. Cavotec’s culture must
be characterised by openness and a
common desire to reach a shared goal,
while working as a unified company. Our
core values of integrity, accountability,
performance and teamwork lay the
Our strategic priorities
• Customers and go-to-market
• Operational excellence
• Cost control
• Culture and values
• Innovation
• People
Comprehensive
change programs
Foundation for
value creation
STRATEGIC PRIORITIES |
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10 Cavotec | Annual and Sustainability Report 2023
foundation for how we act towards each
other and the world around us.
Innovation
Innovation is about solving our customers
future needs and challenges. Through our
technical leadership, we create competitive
advantages and strengthen our position
both with existing and potential customers.
For Cavotec, innovation also has a broader
meaning and it is about having a mindset
that characterises everything we do. If we
Financial targets
Adopted by the Board of Directors in February 2020.
Sales growth
To achieve annual organic revenue growth of at least 5% from 2020, in
addition to possible acquisitions.
Outcome
2020 2021 2022 2023
0.0% +0.4% +27.7% +22.2%
EBIT margin
To reach an annual adjusted EBIT margin of more
than 10% within two years and more than 12% within five years.
Outcome
2020 2021 2022 2023
0.0% -0.6% -3.0% 4.0%
Dividend policy
The target is to distribute dividends of approximately 30-50% of net
profits over a business cycle. Any dividend proposal will be based on
financial position, investment needs, acquisitions and liquidity position.
Outcome
No dividend has been paid for the years 2020-2022. The Board of Directors
proposes to the Annual General Meeting 2024 that no dividend be paid for the
2023 financial year.
+5%
+10%
30-50%
| STRATEGIC PRIORITIES
are to succeed, we must all be innovative,
dare to question existing routines and be
open to new ideas and ways of working.
People
Our employees are Cavotec’s most
important asset and motivated employees
are a prerequisite for us to succeed in
creating profitable growth. With a strong
employer brand, we create the conditions
to retain, develop and recruit the industry’s
best talents. One step in creating a
motivating environment is clearly defined
roles and responsibilities linked to
measurable goals and follow-up, as well
as constant learning that develops and
stimulates us.
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Annual and Sustainability Report 2023 | Cavotec 11
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12 Cavotec | Annual and Sustainability Report 2023
| FINANCIAL PERFORMANCE
Cavotec has steadily improved its financial performance and position during 2023.
Revenue and order backlog
Revenue increased 22.2% to EUR
180.7 million (147.8) where currency
effects had a negative impact of -3.0%.
The strong growth is mainly driven
by deliveries in the Ports & Maritime
segment related to shore power
solutions on container vessels. Most of
the orders for shore power solutions for
new-built container vessels were signed
in 2022 and follow ship building activity
running also into 2024. Demand for reels
in the Industry segment and the services
operations also contributed to the overall
growth.
In the regions, growth was especially
strong in North America increasing 81.6%
to EUR 23.0 million (12.7), and in Asia
Pacific where revenue grew 31.8% to EUR
69.8 million (53.0). In Europe and Middle
East revenue increased 7.0% to EUR 88.0
million (82.2).
The order backlog decreased -16.1%
to EUR 123.6 million (147.2) as a
consequence of the strategic focus
on profitable growth. This approach,
introduced in 2023, resulted in a
normalisation of the order backlog while
there is a continuous steady stream of
customer inquiries and strong interest in
Cavotec’s electrification solutions and
service offering.
Costs and operating expenses
Cost of materials increased 25.1% to
EUR 101.2 million (80.9) and constitutes
56.0% (54.7%) of revenue. Employee
benefit costs increased 0.2% to EUR 47.9
million (47.8) which constitutes 26.5%
(32.3%) of revenue. Operating expenses
was unchanged from 2022 and amounted
to EUR 19.3 million (19.3), which
constitutes 10.7% (13.0%) of revenue.
Gross operating result
Gross operating result increased 783%
to EUR 14.4 million (1.6) and constitutes
8.0% (1.1%) of revenue.
Depreciation and amortisation
Depreciation and amortisation including
depreciation of right-of-use of leased
asset and impairment losses increased
16.9% to EUR 7.2 (6.1) million.
EBIT (operating result)
EBIT improved to EUR 7.2 million (-4.5)
and the EBIT margin increased 7.0
Steady financial performance 2023
Net result and earnings per share
3
1
(1)
(3)
(5)
(7)
(9)
0.04
0.02
0
(0.02)
(0.04)
(0.06)
(0.08)
(0.10)
Operating cash flow, EUR million
6
4
2
0
(2)
(4)
(6)
Revenue EUR million
60
50
40
30
20
10
0
14
12
10
8
6
4
2
0
-2
-4
-6
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
EBIT and EBIT margin
5
4
3
2
1
0
(1)
(2)
• EBIT, EUR million • EBIT margin, %
• Net result, EUR million • Earnings per share, EUR
===== SIDA 15 =====
Annual and Sustainability Report 2023 | Cavotec 13
FINANCIAL PERFORMANCE |
percentage points to 4.0% (-3.0%).
The EBIT improvement is mainly a
consequence of increased volumes as
well as the successful work in the Ports &
Maritime segment to focus on profitable
growth in the order backlog.
Financial income
Interest income amounted to EUR
0.018 million (0.108). Interest expenses
increased to EUR 3.5 million (1.4)
impacted by higher interest rates.
Result before income tax
The result before income tax improved to
EUR 3.8 million (0.3).
Taxes
Income taxes amounted to EUR 3.6
million (2.9). which represents 26.4%
(20.9%) of earnings before tax. Tax paid
was EUR 0.5 million (6.2) million, which
equates to 23.7% (22.3%) of earnings
before taxes.
Profit for the year and earnings per
share
Profit for the year increased to EUR 0.2
million (-14.7). Earnings per share, basic
and diluted, improved to EUR 0.002
(-0.156).
Cash flow
Cash flow before changes in working
capital improved to EUR 10.4 million
(5.8). Working capital increased with EUR
8.5 million (-0.03). Operating cash flow
increased to EUR 1.9 million (-5.5) due
to improved profitability during the year.
Investing activities amounted to EUR -1.5
million (8.2). Investing activities was 2022
impacted by the divestment of the airport
division.
Financial position
Net debt decreased to EUR 18.6 million
from EUR 30.3 million at 31 December
2022. The leverage ratio (measured as
debt-to-equity) improved in the quarter
to 1.29x from 12.5 during the year. The
equity/assets ratio increased from 26.2%
at 31 December 2022 to 36.0% at the
end of 2023. Cash and cash equivalents
increased to EUR 15.1 million (9.6).
Employees
At the end of the year, Cavotec had 664
(640) full-time equivalent employees.
Leverage ratio, times
Net debt, EUR million
14
12
10
8
6
4
2
0
30,000
25,000
20,000
15,000
10,000
5,000
0
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
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14 Cavotec | Annual and Sustainability Report
| OFFERING AND INTRODUCTION TO THE SEGMENTS
With our extensive experience and comprehensive range of innovative
technologies we help customers to connect and electrify port operations
and other critical industrial applications.
An attractive offering in electrification
Our offering ranges from turnkey solutions
and systems integration to volume
products. With our services offering, we
help customers to extend the lifecycle of
our systems and reduce operating costs.
Our services organization offer support
around the world and around the clock.
Crane electrification and cranes
We power cranes with a wide range of
systems such as high-speed motorised
cable reels for fiber optics, liquids or
electricity. The offering also includes cable
protection and power connection systems.
Our systems have a proven track-record
in the harshest of environments and under
extreme mechanical stress. Our crane
solutions are used in ports and terminals,
extraction applications, lifting, and material
handling.
Shore power
We provide a comprehensive range of
shore power connection and charging
solutions for ports, conventional ships,
and e-vessels. Shore power is the only
solution that cut emissions at berth to
zero. Shore power solutions enable the
connection of ships in port to onshore
Ports & Maritime
Crane electrification
Shore power
Automated mooring
Services
Service agreements
Inspections and repairs
Spare parts
Refurbishment
Training
Industry
Cranes
Mining and tunnelling equipment
Industrial applications
Charging solutions
A leading cleantech offering
===== SIDA 17 =====
Annual and Sustainability Report | Cavotec 15
OFFERING AND INTRODUCTION TO THE SEGMENTS |
power supply, allowing ships’ diesel
generators to be switched off.
Automated mooring
Our MoorMaster® vacuum automated
mooring system replaces conventional
mooring lines with automated vacuum
pads that moor and release vessels in
seconds at the push of a button. With
more than 1.3 million successful moorings
completed since its introduction in the late
90s, MoorMaster is the world’s only widely
used automated mooring technology. It is
in use with a wide variety of vessels and
applications, including 400 metre-long
container ships and bulk carriers. Mooring
sequences takes less than a minute and
the release phase is even quicker. The
system reduces emissions during the
mooring process by more than 90% and
enables vessel overhang. MoorMaster’s
advanced control system minimises vessel
motion along the berth, increasing the
efficiency of loading and unloading.
Mining and tunnelling equipment
Our mining and tunnelling systems
enable the connection, electrification
and automation of mobile mining and
tunnelling equipment. These include
Human Operator Interface systems,
motorised cables and hose reels, spring
reels, junction boxes, power connectors
and industrial controllers such as chairs
and joysticks.
Industrial applications
We provide solutions and products
for a wide variety of processing and
transportation applications such as
automotive, power plants, steel and
aluminium, wind and solar energy.
Cavotec has extensive experience of
providing customised solutions for the
safe and efficient transmission of energy,
signals and data, as well as liquid and
gaseous media.
Charging solutions
Our connection solutions optimise the
charging of a variety of mobile equipment
such as electric and hybrid vehicles,
trucks, AGVs and ships. We provide
manual and automatic connection
systems that withstand challenging port
environments and ensure operational
safety.
Our Megawatt Charging System (MCS)
provides up to 4.5 MW charging power
with a single MCS connector. The system
significantly reduces charging time and
maximises uptime compared to existing
combined charging systems. MCS can
be used to charge all kinds of heavy-
duty vehicles, such as agriculture and
construction vehicles, large mining trucks
and e-vessels.
Our segments
Our two segments
We report two segments:
Ports & Maritime and Industry.
Services activities are reported in the
respective segment in which they are
carried out.of total revenue
63% 37%
of total EBITDA
78% 22%
Ports & Maritime
Industry
===== SIDA 18 =====
16 Cavotec | Annual and Sustainability Report 2023
Our Ports & Maritime segment provides world-leading solutions for ports, ships
and other marine applications. With our unique systems for automated mooring,
shore power, crane electrification, and connection and charging systems, we
significantly improve the environment in ports and terminals worldwide.
“ Our focus is to continue
improving the environment
in the world’s ports while
also working on our internal
efficiency.”
Patrick Mares,
President, Ports & Maritime
We significantly improve the environment
for ports worldwide
| SEGMENT PORTS & MARITIME
Our systems are in use all over the world
and we provide services to customers
around the clock. Customers include
ship owners and operators, ports and
terminals, port equipment manufacturers,
shipyards, and major contractors. Among
our customers are ABB, DP World, and a
number of ports across the world including
Hong Kong, Los Angeles and Shanghai.
Our competitive advantages
Our main competitive advantages are our
high quality, technical ability and broad
service offering. Our customers never
compromise on safety, which is often a
reason for them to choose Cavotec as the
preferred supplier.
Key business progress in 2023
We announced a repeat order, signed with
one of the world’s largest shipping lines
to supply shore power equipment for new-
build container ships. The total value of
the announced order is EUR 6.65 million,
with deliveries running from late 2023 to
early 2025. The order is for our PowerFit
units, which are complete containerised
solutions for the high-voltage connection
of vessels to shoreside electricity. The
PowerFit units enable dramatic reductions
of local air and noise pollution at ports,
minimising the vessels’ environmental
impact. The contract further strengthens
our leading position in the decarbonisation
of the maritime industry.
We also announced a long-term service
agreement with COSCO Group, one of
the world’s largest shipping companies.
We will provide preventive maintenance
===== SIDA 19 =====
Annual and Sustainability Report 2023 | Cavotec 17
Annual and Sustainability Report 2023 | Cavotec 17
SEGMENT PORTS & MARITIME |
===== SIDA 20 =====
18 Cavotec | Annual and Sustainability Report 2023
for more than 60 ocean-going vessels,
equipped with our shore power systems.
The agreement strengthens Cavotec’s
presence in Asia.
At the end of the year, we announced
an order for mooring units signed with
a North American seaway operator.
The order is worth USD 5.7 million and
further improves our position in the North
American market.
Key events after the end of 2023
In the first quarter of 2024, we announced
key business wins such as a two-year
service agreement with APM Terminals
MedPort Tangier, a shore power retrofit
order with a major European shipping
line worth USD 5.7 million, and a three-
year service agreement for shore power
systems in a large North American port.
Performance in 2023
Revenue increased 29.9% to EUR 114.7
million (88.3). Currency exchange
effects had a negative impact of -2.7%.
The strong growth was mainly driven
by deliveries of shore power solutions
for new-built container vessels as well
as cruise terminals. Most of the orders
for shore power solutions for new-built
container vessels were signed in 2022
and follow ship building activitity running
also into 2024. The development was
driven by growth of 111.6% in North
America to EUR 18.2 million (8.6) and in
Asia Pacific of 30.0% to EUR 50.7 million
(39.0). Revenue in Europe and Middle
East grew 12.6% to EUR 45.7 million
(40.6).
The order backlog decreased -14.6% to
EUR 99.8 million (116.9).
EBITDA improved significantly to EUR
11.2 million (-2.4) and the EBITDA margin
increased 12.5 percentage points to
9.8% (-2.7%) thanks to the focus on the
strategic priorities and increased volumes
during the year.
| SEGMENT PORTS & MARITIME
Sales by
geography
MEUR
SEGMENT PORTS & MARITIME
Asia Pacific, 50.7 EUR million
Europe and Middle East, 45.7 EUR million
North America, 18.2 EUR million
===== SIDA 21 =====
Annual and Sustainability Report 2023 | Cavotec 19
CASE STUDIES
Sweden’s first MoorMaster NxG vacuum
mooring system officially entered service
in September 2023, paving the way
for significant safety, operational and
sustainability gains. The system, at Port
of Kapellskär, part of Ports of Stockholm,
is now being used with Finnlines’ new-
build Ro/Pax passenger and freight
vessel, Finnsirius.
MoorMaster eliminates the need for
hazardous mooring lines with automated
vacuum pads that moor and release
vessels in seconds at the push of a
button. The system is in use at a wide
variety of applications all over the world
including container handling, ferry, and
bulk terminals.
MoorMaster NxG has already entered
service at a number of sites, but the
Kapellskär application is the first of its
kind in Sweden.
The system at Kapellskär is being
used to moor the brand-new Finnsirius,
which recently won the Ferry Shipping
Summit’s Ro/Pax of the Year award, and
that operates the Kapellskär – Långnäs
– Naantali (Finland) route. The system
moors and releases the vessel in less
than 30 and 15 seconds, respectively.
“The vacuum technology improves
sustainability by providing a safer
working environment and reduced
environmental impact,” says Johan
Wallén, Chief Commercial Officer at Ports
of Stockholm.
Using MoorMaster enables ships engines’
to be shut off sooner after arrival in
port, resulting in significant fuel savings
and reduced NOx and CO2 emissions
and noise reductions – benefits that are
increased further with connection to shore
power using Cavotec’s PowerReach
solution, which has also been installed at
the Kapellskär berth.
Cavotec provides shore- and ship-based
shore power connection systems for
customers all over the world. Ports of
Stockholm first provided onshore power
connection for vessels in the 1980s and
all of its ports are now equipped with
shore power connection facilities.
Now installed together at Kapellskär, this
joint MoorMaster NxG and PowerReach
application provides an example of how
ports and shipping lines are able to make
their operations safer, more efficient and
more sustainable.
APM Terminals MedPort Tangier in
Morocco is one of the busiest container
terminals in Africa. Recently, the port
wanted to simultaneously expand capacity
to better service increasing traffic volumes
and reduce emissions and noise at the
terminal. The port operator chose to
install Cavotec’s MoorMaster® automated
vacuum mooring system and increase
its quay length from 1,200 to 2,000
metres. By using all-electric or hybrid
terminal equipment, automated mooring
technology and other systems, the port
has successfully expanded its capacity
and improved the environment at the port
in terms of reduced emissions and noise.
Cavotec is supplying the port with
MoorMaster units installed all along the
800 metre extension, the last of which are
due to enter service at the beginning of
2024. The remotely controlled MoorMaster
units allow vessels to moor in seconds,
ensuring better safety, significantly
reducing emissions, and enabling faster
vessel turnarounds. It is estimated that
the MoorMaster units will reduce ship
emissions during berthing in MedPort
Tangier by more than 90% compared to
conventional mooring due to reduced use
of tugs and ship engines.
The units will also create major
productivity gains at the busy Moroccan
terminal. Once vessels are moored,
the MoorMaster units’ active hydraulics
significantly reduce vessel motion,
thereby positively impacting terminal
crane moves per hour. As a result of
improved efficiency, average vessel call
times are expected to be reduced by an
average of two hours in addition to the
saving of one hour due to faster mooring
and release times.
“As we see the maritime industry target
ambitious sustainability goals and move
towards cleaner future, efficiency is the
key to reach those targets sooner rather
than later. MoorMaster provides that
efficiency by helping MedPort Tangier to
both expand its capacity and to reach its
environmental goals. We are very proud
to support the port in their transformation
into a modern transshipment hub in the
Mediterranean”, says Vikesh Dhanpat,
Global Product Manager at Cavotec.
SEGMENT PORTS & MARITIME |
MoorMaster automated mooring expands capacity at busy Medport Tangier
Cavotec’s MoorMaster and shore power enter service in Stockholm
===== SIDA 22 =====
20 Cavotec | Annual and Sustainability Report 2023
Our Industry segment offers solutions that drive productivity and contribute to the
customers’ operational efficiency, safety and electrification. Our solutions include
motorised cable and hose reels, Human Operator Interface systems, Radio Remote
Controls, power connectors, slip rings and spring driven cables and hose reels.
“ We will continue to create
value for our customers
and at the same time focus
on our internal efficiency
to improve profitability.”
Simone Sguizzardi,
President, Industry
We improve our customers’ operations
| SEGMENT INDUSTRY
We support customers in a wide variety of
industrial sectors, such as cranes, energy,
processing and transportation, surface
and underground mining, and tunnelling.
Mining and construction are the largest
customer segments. We have worked
closely during long time with leading
OEMs in the mining and construction
sectors such as Caterpillar, Epiroc,
Sandvik and ThyssenKrupp.
Our competitive advantages
Our ability to understand end customer
needs and present solutions to help them
improve their operations is undoubtedly our
main competitive advantage. With our long
experience and knowledge of technical
solutions in tough environments such as
mines and tunnels, we can actively drive
the customers’ improvement work. It gives
us a unique position and creates long-term
relationships that are strengthened by our
broad service offering.
Key business progress 2023
Our world’s first ultra-fast Megawatt
Charging System (MCS) was
commissioned by a mining site in
Australia and in full service in the
beginning of 2024. We launched the
MCS, which provides up to 4.5 MW of
power from a single connector, in October
2022. At the site in Australia, our MCS is
charging a prototype 240-tonne electric
haul truck in just 30 minutes. The MCS
significantly reduces the charging time
and is a major industrial breakthrough.
===== SIDA 23 =====
Annual and Sustainability Report 2023 | Cavotec 21
Annual and Sustainability Report 2023 | Cavotec 21
SEGMENT INDUSTRY |
===== SIDA 24 =====
22 Cavotec | Annual and Sustainability Report 2023
Performance 2023
Revenue increased 10.8% to EUR 66.0
million (59.6). Currency effects had a
negative impact of -3.3%. The revenue
increase was mainly driven by good
demand for reels. Growth in North
America amounted to 17.6% to EUR 4.8
million (4.0) and in Asia Pacific to 36.7%
to EUR 19.1 million (14.0). Revenue in
Europe and Middle East grew 1.5% to
EUR 42.2 million (41.6).
The order backlog decreased -21.6% to
EUR 23.8 million (30.3).
EBITDA amounted to EUR 3.2 million
(4.0) and the EBITDA margin decreased
-2.0 percentage points to 4.8% (6.8%),
negatively impacted by a high proportion
of larger projects with lower margins.
| SEGMENT INDUSTRY
SEGMENT INDUSTRY
Europe and Middle East, 42.2 EUR million
Asia Pacific, 19.1 EUR million
North America, 4.8 EUR million
Sales by
geography
MEUR
===== SIDA 25 =====
Annual and Sustainability Report 2023 | Cavotec 23
CASE STUDIES SEGMENT INDUSTRY |
Safety is paramount in the mining industry.
The challenge is to find solutions that
improve safety and maximise efficiency.
Through its long-term collaborations with
customers in the mining sector, Cavotec
has extensive experience of developing
solutions that achieve these two aims. In
2023, Cavotec developed in cooperation
with Epiroc, a leading productivity and
sustainability partner for the mining and
construction industries and a long-term
customer, a new smart motorised cable
reel to improve the safety and productivity
of the company’s underground mining
operations.
The smart reels monitor applications’
critical data such as temperature and
usage patterns. This gives Epiroc better
operational visibility, allowing them to
improve safety and increase efficiency and
productivity.
“The new smart reel is a prime example
of our continuous efforts to meet
our customers’ needs for safety and
efficiency,” says Benny Törnroos, Regional
Sales Director at Cavotec. “Through
our extensive industry expertise and
technical know-how, we create value for
our customers and strengthen our market
position.”
The global mining industry is increasingly
switching to electric solutions to reduce
emissions. One of the challenges for the
sector is to find charging systems for
new electric heavy-duty vehicles. Cavotec
has worked closely with customers in the
mining market for many years, so it made
sense for us to take on the challenge.
After two years of development work, in
2023, we delivered the most powerful
industrial charging system ever made for
one of the largest iron ore producers in
the world.
Our megawatt charging system (MCS)
provides a solution that charges a
prototype 240-tonne electric haul truck
in just 30 minutes. The MCS enables
the customer to substantially minimise
environmental impact as part of its
journey towards zero emissions at the end
of the decade.
MCS consists of Cavotec’s ultra-fast, 3
MW charger, high voltage transformer,
power electronics, MCS connector, cable,
inlet, and several cooling systems that
maintain the systems’ continuous and
stable performance.
“Our world-leading charging system
shows that we lead the technological
development,” says Simone Sguizzardi,
President of Cavotec’s Industry Division.
“We create value for our customers
by electrifying their operations and
contributing to reduced emissions and
better working environments.”
New smart reel improves safety in underground mines
World’s most powerful charging system reduces emissions in mines
===== SIDA 26 =====
24 Cavotec | Annual and Sustainability Report24 Cavotec | Annual and Sustainability Report 2023
Sustainability is not only about taking
advantage of opportunities, but also about
identifying and addressing negative risks
and impacts throughout our value chain.
We started structured sustainability work in
2021 and have further intensified the work
in 2023. During 2023, we have, among
other things, set up a system for more
efficient and safer data collection with the
help of external resources and an online
platform. With this online data collection
system, we will improve the quality of data
as well as the analysis and follow-up of our
performance.
In 2023, we also continued the work
with our double materiality analysis. We
started work on identifying measures
that we will have to take in 2024 to
become compliant with the new European
Sustainability Reporting Standards. An
important part of the work is to improve
the processes for internal control as well
as reporting to the Cavotec Management
Team and the Board of Directors. In
2024, we will also focus on setting
targets for key performance indicators
within our prioritised sustainability areas
environment and climate, our people and
business ethics.
ABOUT THE SUSTAINABILITY REPORT
The sustainability report covers the financial
year 1 January 2023–31 December 2023
for Cavotec SA, company registration
number CHE-440.276.616, registered in
Lugano, Switzerland. The report covers
all subsidiaries that are consolidated
in the financial statements, note 3. For
questions about how Cavotec works with
sustainability, or the sustainability report,
please contact sustainability@cavotec.com.
Scope of data collection
Collected data has been expanded in 2023
regarding energy use and water. From
2023, data for energy use covers all units
in Cavotec. HR data has for all three years
2021-2023 been collected from all units,
comprising 100% of all FTEs.
Data for energy use
In 2021, data for energy use covered eight
facilities in seven countries: Australia,
China, Finland, Germany (two facilities),
India, Italy and New Zealand, comprising
77% of all FTEs.
In 2022, data was expanded to encompass
also Norway and Sweden, comprising 88%
of all FTEs.
In 2023, data was expanded to encompass
also Dubai, France, Malaysia, Netherlands,
Singapore, Switzerland and the US,
comprising 100% of all FTEs.
Data for water
In 2022, data for water covered seven
facilities in six countries: Australia, China,
Germany (two facilities), Italy, Norway and
Sweden, comprising 78% of all FTEs.
In 2023, data was expanded to encompass
also Dubai, Finland, France, India, Malaysia,
Netherlands, Singapore, Switzerland and
the US, comprising 96% of all FTEs. New
Zealand is the only facility not included.
Sustainability drives our business
| SUSTAINABILITY REPORT
Sustainability is close to our hearts and is the basis of our business. The increasing
focus on sustainability in society and not least the rapidly increasing awareness
of decarbonisation of society drives our business. The climate issue and the
importance of decarbonisation are also what motivate us in our daily work.
===== SIDA 27 =====
Annual and Sustainability Report | Cavotec 25
In 2021, we increased our insights about
our value chain by a simplified life cycle
analysis (LCA) on four product families:
Azipod, MoorMaster, Motorised Cable
Reels, and Alternative Maritime Power
(AMP). The analysis was made internally
and developed in accordance with ISO
14040-14044:2021 on Environmental
Management: Life Cycle Assessment
(LCA). As part of the analysis, we identified
key activities in the value chain with most
significant negative impacts on water,
air emissions, soil contamination, noise
emissions, and hazardous and non-
hazardous wastes. In summary, the analysis
showed that we have the most significant
environmental impact in our upstream value
chain with special emphasis on foundries
and carpentries in the processing of input
goods, which impact environmental aspects
such as emissions of greenhouse gases,
energy use, waste disposal and water
consumption.
Upstream
Raw material producers
Cavotec’s products include metals and
alloys such as steel and aluminum as
well as rubber. In the processes, various
solvents and chemicals are used to produce
the material. Steel is one of the primary
materials used in the products, which has a
considerable environmental impact due to
the extraction of iron ore and production
of steel.
Refining
The raw materials are refined in various
processes to become sub-components
for the inputs Cavotec purchases. These
processes are, for example, casting,
compression moulding, welding and cutting.
Several actors can work with the same input
before it has reached the stage where it can
be included in Cavotec’s products.
Processing of input goods
Cavotec has approximately 2,100 suppliers
which deliver input goods for the assembly
of Cavotec’s products and other services.
The majority of the suppliers are based in
China, Germany and Italy.
Our value chain
SUSTAINABILITY REPORT |
By understanding our value chain, we get increased insights about potential
negative and positive impacts. With that knowledge, we can reduce negative
impact and take advantage of the opportunities. For us, the main opportunity is
about creating better products and processes together with our suppliers and
customers that will accelerate the decarbonisation of society.
Raw material
producers
Metals
Solvents
Crude petroleum
Refining
Metalworking
Electronics
components
Synthetic rubber
Processing of
input goods
Products made of
metal and rubber
Electronics
products
Assembly
Service
Sales
Support functions
Customers
OEMs and
integrators
Port operators
Ship operators
Ship builders
Mining operators
Mining vehicles
End-users
Dock workers
Sailors
Machine operators
in mines
Distribution channels
Recycling
===== SIDA 28 =====
26 Cavotec | Annual and Sustainability Report26 Cavotec | Annual and Sustainability Report 2023
Cavotec’s operations
Assembly
Cavotec has six assembly and production
units, one each in China, India, Italy, New
Zealand and two in Germany. The assembly
units serve their respective regional
markets. The Indian facility will be officially
inaugurated in 2024.
Service
The service organisation supports customers
through inspections, maintenance as well as
sales and installation of spare parts. Cavotec
has service centers with repair shops in
China, Italy, Norway, Singapore and the US.
Parts of the service organisation are based
at the customers’ premises.
Sales
Cavotec has sales offices in Australia, China,
Finland, Great Britain, India, Hong Kong,
Norway, Singapore, Sweden, United Arab
Emirates and the US.
Support functions
The support functions are local, regional and
at group level. The support functions include
finance, HR, IT, procurement and legal.
Cavotec also has an Innovation Center in the
Netherlands.
Downstream
Customers
Cavotec has over 3,100 active customers
across the globe. Some products are mostly
sold to OEMs and integrators. The main
end customer groups are port operators,
shipbuilders, producers of mining machinery
and mining operators. Cavotec’s products
are often critical where they are used and
downtime is associated with high costs for
the customer and/or end customer. The
products therefore represent a high added
value for customers and/or end customers.
End-users
The end-users of Cavotec’s products are
mainly sailors, dock workers and machine
operators in mines.
Distribution channels
Throughout the value chain, vessels and
trucks are used for transport. Flights are only
exceptionally used for smaller components.
Recycling
Waste materials of metals, plastics and
rubber are reused throughout the value
chain. Cavotec’s products, and the products
where Cavotec’s solutions are included as a
component, often have long-life time. When
the products in which Cavotec’s products
are included, reach the end of their life cycle,
they are remanufactured or recycled.
| SUSTAINABILITY REPORT
All data refer to financial year 2023. Employee data refer to FTEs at 31 December 2023.
EMPLOYEES BY FUNCTION
Production, 187
Engineering, 114
Service, 97
Sales, 76
Sourcing, 48
Finance, 47
Management, IT, HR, Marketing
and communication, Legal, 95
EMPLOYEES BY REGION
Europe, 401
Asia, 182
Oceania, 52
North America, 27
Middle East, 2
REVENUE BY REGION
Europe and Middle East
and Africa, 88.0 EUR million
Asia Pacific, 69.8 EUR million
North America, 23.0 EUR million
Employees
in total 664
Employees
by region
Revenue by
region, MEUR
===== SIDA 29 =====
Annual and Sustainability Report | Cavotec 27
SUSTAINABILITY REPORT |
Our stakeholders’ views and questions
form the basis of our materiality analysis
and how we prioritise and work with
sustainability issues. The stakeholders
Stakeholder dialogues
Cavotec is daily in dialogues with its stakeholders in many parts of the
organization. The stakeholders deemed to have the greatest influence on us are
employees, customers, suppliers, investors and lenders.
Stakeholder How the engagement
is organized
Purpose Key sustainability
topics discussed
How the outcome is taken
into account by Cavotec
Employees Performance and career
development reviews,
workplace meetings,
employee surveys, internal
training, intranet. Interaction
with union representatives.
To create conditions for
high employee motivation
through, among other
things, safe workplaces and
fair working conditions.
Health and safety. Diversity
and inclusion. Development
of skills and capacity.
Reduction of Cavotec’s
carbon footprint from its
operations and products.
Climate change and the
own workforce are two
of Cavotec’s material
sustainability matters.
Customers Business meetings
and customer surveys.
Customer events and
trainings. Customer
service contacts. Requests
for quotations and
procurements.
To demonstrate the
products’ capacity to
electrify customers’
operations and reduce
emissions of greenhouse
gases, and improve
working environments at
the customers. To secure
long-term relationships
through service agreements.
To ensure Cavotec’s ability
to comply with customers’
Codes of Conduct for
suppliers.
Cavotec’s ability
to contribute to the
electrification of customers’
operations and reduce their
emissions of greenhouse
gases, and improve their
working environment.
Cavotec’s business model
and strategy is based on
the products’ capacity to
electrify operations and
reduce emissions as well
as their contribution to safer
working environments.
Suppliers Business meetings and
suppliers’ customer
surveys. Events and
trainings arranged by
suppliers. Customer
service contacts. Requests
for quotations and
procurements.
To create conditions for on-
time high-quality deliveries.
To ensure the suppliers’
ability to comply with
Cavotec’s Code of Conduct
for suppliers.
Logistics and transportations.
Cavotec’s Code of Conduct
for suppliers.
Business conduct including
payment practices is one
of Cavotec’s material
sustainability matters.
Investors, analysts, potential
investors and lenders
CEO and CFO in meetings
with shareholders, potential
investors and lenders.
Presentations at investor
meetings and seminars,
often arranged by banks.
To create the conditions for
continued financing and
value creation.
How Cavotec’s offering
contributes to electrification
and reduced emissions.
Cavotec’s efforts to reduce
its own emissions, secure
fair working conditions and
respect human rights.
Cavotec’s goal is to report
according to the European
Sustainability Reporting
Standards.
STAKEHOLDER DIALOGUES
have in common that the climate issue
and energy use, fair and safe working
conditions and business ethics are at the
top of the agenda.
===== SIDA 30 =====
28 Cavotec | Annual and Sustainability Report28 Cavotec | Annual and Sustainability Report 2023
The materiality analysis was made in
2021 and based on dialogues with
stakeholders, our risk assessment, and
an impact model. The analysis followed
a proven process in line with industry
best practice and international reporting
frameworks, as well as incorporating a
dual materiality perspective. In the dual
materiality perspective, the financial, legal
and operational impacts on Cavotec were
also included.
Risk assessment
A sustainability risk assessment was part
of the materiality analysis and was also
made in 2021. It covered sustainability
risks throughout our operations and our
supply chain. Risks were assessed based
on probability and the potential impact on
Cavotec. At that point in time, the main
risks included: inability to capitalise on
sustainability due to limited sustainability
knowledge and increasing investor
demands, use of natural resources, lack
of skilled labour, emissions of greenhouse
gases and effluents to soil, water and air.
The results of the analysis and
assessments were compiled in a
materiality pyramid. The priority areas were
summarized under the main headings:
environment and climate, our people and
business ethics.
Our prioritised sustainability areas
Environment and climate
Cavotec has through its operations
a negative impact on environment
and climate which we aim to reduce.
At the same time, we contribute
to the sustainability transition and
decarbonisation of society through our
products and systems. With our offer, we
also contribute to increased safety for our
customers’ employees.
Our people
Our employees are the foundation for our
ability to deliver safe, high quality, and
energy efficient products and solutions.
Therefore, Cavotec needs to be a great
place to work that prioritise the health and
safety of our employees, diversity and
inclusion, and development of skills as
well as attracting new talent.
Business ethics
To be a trusted partner for customers that
want safe and energy efficient solutions,
Cavotec needs to be a responsible
business partner by upholding highest
possible business ethics and fight
corruption.
Materiality analysis
| SUSTAINABILITY REPORT
Our materiality analysis shows that our prioritised sustainability areas are the
environment and climate, our people and business ethics.
MATERIALITY PYRAMID
Focus
Develop
Monitor & manage
Reducing carbon footprint of our
operations and products
Management of natural resources,
use of materials, waste and hazardous
substances
Water and wastewater management Biodiversity and ecosystem impact
Product quality and safety
Sustainability in sourcing and supply chain
processes (human rights, labour rights, envi-
ronment and anti-corruption
Data and IT security Responsible tax management
Attract and retain employees by
developing skills and capacity
Diversity and inclusion
Employee health and safety
Upholding business ethics and combat-
ing corruption
E
S
G
===== SIDA 31 =====
Annual and Sustainability Report | Cavotec 29
SUSTAINABILITY REPORT |
The highest governing body responsible
for sustainability is the Board of Directors.
The Board is responsible for evaluation,
strategy, risk control and goal setting
in the area of sustainability. The CEO is
responsible for execution of the strategy,
follow-up and measures as well as
risk management. The CEO delegates
responsibility for specific areas to people
in the Cavotec Management Team. The
CFO is responsible for sustainability
issues related to climate, environment
and business ethics. The Chief Legal &
Human Resources Officer is responsible
for compliance and HR.
Sustainability data is collected once a year,
evaluated by the Cavotec Management
Team and reported to the Board together
with action plans if deemed necessary.
The composition of the Board and
Cavotec Management Team including the
respective experiences are described in
the corporate governance report.
Policies
All sustainability-related Group policies
are revised when deemed necessary
and adopted by the Board of Directors.
The Code of Conduct forms the basis of
Cavotec’s operations, with the purpose
of ensuring protection of human rights,
promotion of fair employment conditions,
safe working conditions, responsible
management of environmental issues,
and high ethical standards. The Code of
Conduct summarises the internal policy
documents related to business ethics,
quality as well as social and environmental
performance. The Code applies to all
employees including Board members in
the Group, individuals or businesses that
work on behalf of any Cavotec company
and suppliers.
The Group’s policies are communicated
to employees through the intranet and it
is the responsibility of each manager to
ensure that all employees have received
information about and are aware of the
policies. The managers must also ensure
that consultants, Directors and others
working on behalf of Cavotec are aware
of the policies. The managers must also
ensure that the suppliers have signed the
Supplier Code of Conduct. The Code of
Conduct is also available on Cavotec’s
website cavotec.com.
Management systems and
certifications
An element of the Group’s continuous
improvement work is the use of
management systems. By the end of
2023, Cavotec had three certifications
covering ISO 9001 Quality Management
Systems and ISO 14001 Environmental
Management Systems. The facility in
Shanghai, China, became ISO 9001 and
ISO 14001 certified in 2021. The facility in
Milan, Italy, became ISO 14001 certified
in 2022. No management systems are the
result of legal requirements.
Supplier Code of Conduct
The Supplier Code of Conduct sets out the
basis of Cavotec’s responsible sourcing
approach and defines the minimum
standards that suppliers must respect
when doing business with Cavotec. The
Supplier Code of Conduct covers, among
other things, respect for human rights and
fair labour practices, health and safety,
environment, business ethics as well
reporting requirements. It is applicable
to all suppliers including their corporate
bodies, employees, representatives,
subcontractors and sales partners. The
Code shall be signed by the supplier,
whereby it commits to adopt and comply
with the Code.
Governance
Sustainability and the sustainability work cover all parts of the Group and involve
all employees and the Board of Directors as well as suppliers.
Policies within the area of
sustainability
• Anti-Fraud Policy
• Anti-Bribery and Corruption Policy
• Code of Conduct
• Environmental and Sustainability
Policy
• Gifts and Entertainment Policy
• Supplier Code of Conduct
• Tax Policy
• Whistleblower Policy
===== SIDA 32 =====
30 Cavotec | Annual and Sustainability Report30 Cavotec | Annual and Sustainability Report 2023
Our main environmental impacts include
energy consumption and resulting
greenhouse gas emissions, natural
resources use in our products, waste
generation, and interactions with water.
We are committed to limit the negative
environmental impacts from our opera -
tions, our supply chain, and our products
and services, which is expressed in our
Environmental and Sustainability Policy.
We apply the precautionary principle to
situations where harm may be done to the
environment or human health, following
legislation and international initiatives.
Scope of data collection
In 2023, data has been expanded regard -
ing energy use and data now covers
all units. In 2021, data for energy use
covered eight facilities in seven countries:
Australia, China, Finland, Germany (two
facilities), India, Italy and New Zealand,
comprising 77% of all FTEs. In 2022,
data was expanded to encompass also
Norway and Sweden, comprising 88% of
all FTEs. In 2023, data was expanded to
encompass also Dubai, France, Malaysia,
Netherlands, Singapore, Switzerland and
the US, comprising 100% of all FTEs.
Data collected for fuel includes all
company cars the years 2022-2023, but
only for part of the car fleet in 2021. In
previous sustainability reports, energy
from stationary combustion has been
classified as district heating. This has
been corrected in this year’s sustainability
report where stationary combustion
energy is included in fuels.
Energy use
We are taking action to reduce our
climate impact from energy use by
improving the energy efficiency. In our
largest facility in Italy, we have invested in
geothermal energy, and there is a photo-
voltaic system on the roof that covers
approximately 22% of the facility’s total
energy consumption. In 2023, 31% (36%)
of Cavotec’s electricity consumption
came from renewable energy and 180
(166) MWh was sold back to the grid.
Environmental and climate impact
| SUSTAINABILITY REPORT
Climate change is one of the major challenges facing the world today and we are
determined to play our role in climate change mitigation and adaptation. Questions
regarding water stewardship and circularity are also high on our agenda.
ENERGY PRODUCED, CONSUMED AND SOLD
MWh 2021 2022 2023
Total energy produced 291 310 2,689
Total energy produced 291 310 2,689
– of which geothermal for heating and cooling – – 2,389
– of which photovoltaic for electricity 291 310 300
Total energy produced and consumed 261 274 2,635
– of which geothermal for heating and cooling – – 2,389
– of which photovoltaic for electricity 261 274 246
Total energy produced and sold 98 166 180
– of which renewable 30 36 54
– of which non-renewable 68 130 126
ENERGY CONSUMPTION
MWh 2021 2022 2023
Fuels including gas, petrol and diesel 1,418 1,467 1,441
Electricity 2,356 2,489 2,032
– of which non-renewable 1,448 1,594 1,400
– of which renewable 908 895 631
Renewable energy share of total consumption 39% 36% 31%
District heating 128 125 122
Total energy consumption 3,902 4,081 3,595
Energy consumption, kWh/net sales 0.03370 0.02760 0.01989
===== SIDA 33 =====
Annual and Sustainability Report | Cavotec 31
SUSTAINABILITY REPORT |
GHG emissions
We want to contribute to mitigation and
adaptation of climate change not only by
providing solutions that have potential
benefits but also in our own operations.
Energy use is the primary contributor to
greenhouse house emissions from our
own operations.
As part of the preparations to report
according to the new European
Sustainability Reporting Standards,
we will start work on screening Scope
3 emissions in 2024. Pending the
mapping of Scope 3 emissions, we only
report Scope 1 and 2. Scope 1 is direct
emissions and includes emissions from
company cars and heating. Scope 2 is
indirect energy related emissions from
electricity and district heating. Scope 3
is indirect emissions in the value chain.
Greenhouse gases have been calculated
in accordance with the GHG Protocol,
using emission factors from DEFRA
(2023) for Scope 1 and DEFRA (2022)
for Scope 2. The calculation covers
carbon dioxide (CO₂), methane (CH₄),
nitrous oxide (N₂O), hydrofluorocarbons
(HFCs), perfluorocarbons (PCFs),
sulphur hexafluoride (SF₆) and nitrogen
trifluoride (NF₃).
Water management
We acknowledge that fresh water is a
scarce resource, and we aim to foster
responsible water stewardship in all our
facilities by monitoring water use and
ensure water effluents is treated correctly.
For our own operations, the primary use
of water is for sanitary purposes and
drinking water. However, the geothermal
energy for the Italian site utilises water
which is controlled regularly and follows
all legal requirements.
In 2022, data for water covered seven
facilities in six countries: Australia, China,
Germany (two facilities), Italy, Norway and
Sweden, comprising 78% of all FTEs.
In 2023, data was expanded to encompass
also Dubai, Finland, France, India, Malaysia,
Netherlands, Singapore, Switzerland and
the US, comprising 96% of all FTEs. New
Zealand is the only facility not included.
We have not reported any water
consumption 2021-2023, i.e. water
consumed so that it is no longer available
for use by the ecosystem or local
community.
Waste management
We generate waste on our facilities
from packaging of parts from suppliers
and general waste from the offices. We
acknowledge the need for a transition to
a circular economy and minimise waste.
Collaboration for circularity and
reduced use of resources
To be successful in establishing circularity
and reduced need for virgin raw materials,
we have to collaborate with our suppliers.
For example, steel is one of the primary
materials used in our products, which has
a considerable environmental impact due
to the extraction of iron ore and production
of steel. We are keeping an eye on the
development of steel produced without the
use of fossil fuels and will review suppliers’
processes for minimising environmental
impact at the time of mining.
GHG EMISSIONS
CO2e ton 2021 2022 2023
Scope 1 243 233 286
Scope 2 976 1,025 842
Total Scope 1-2 1,219 1,258 1,128
Total Scope 1-2/net sales, kg 0.0105 0.0085 0.0060
Scope 3 331 338 202
Total Scope 1-3 1,550 1,596 1,330
Total Scope 1-3/net sales, kg 0.0134 0.0108 0.0074
WATER USAGE AND DISCHARGE
Megaliters 2021 2022 2023
Water usage 2.50 2.51 4.23
Water discharge 2.50 2.51 4.23
Water usage/net sales, liters 0.0215 0.0170 0.0234
Water discharge/net sales, liters 0.0215 0.0170 0.0234
===== SIDA 34 =====
32 Cavotec | Annual and Sustainability Report32 Cavotec | Annual and Sustainability Report 2023
| SUSTAINABILITY REPORT
Cavotec is a global company with
operations in 18 countries and have
therefore created a model where the HR
organisation is embedded in all local
operations. The directions are given by the
Group and relayed in the regions by HR
business partners who support leaders
locally. HR is furthermore supported by
finance and administrative functions at
each location, who are responsible for the
day-to-day implementation and upholding
of our HR practices and processes.
At the end of 2023, 181 of our employees
were covered by collective agreements,
which constitutes 27% of the total
number of FTEs. Over 94% of temporary
employees are permanent employees
and 98% are full-time employees. Women
are underrepresented and make up only
18% of the total number of FTEs. At
year-end, Cavotec had four FTEs who are
not employees (consultants, interns or
volunteers).
Everything we do at Cavotec rests on
respect for human rights and labour rights.
We comply with international, national
and industry-related laws, guidelines
and collective agreements relating to
working conditions, working hours and
compensation. We respect and promote
fairness, and the right of each employee
to a safe working environment where all
employees are treated with dignity and
respect. Employees with comparable
qualifications, experience and performance
will receive equal pay for equal work with
respect to those performing similar tasks
under similar working conditions and
similar output. The different backgrounds,
experiences and opinions of our employees
enrich our expertise and drive innovation
and growth.
Non-discrimination and equal value
Our Code of Conduct strictly prohibits
direct and indirect forms of discrimination
and harassment of any kind. This includes,
but is not limited to, discrimination based
on age, ethical and cultural background,
gender, religion, sexual identity, disability,
race, colour, political opinion, social origin,
social status, indigenous status, union
membership or employee representation
and any other characteristic protected
by local law, as applicable. In 2023, two
cases of discrimination were reported in
the organisation. Both cases have been
investigated and remedied.
Our corporate values
Our success rests on our core values:
Integrity, Accountability, Performance,
and Teamwork. We are committed to
developing and maintaining a workplace
where our employees can learn and
develop with the respect and support
of their colleagues and managers.
Our open, non-hierarchical working
environment encourages the free
exchange of ideas and mutual respect
between individuals that underpin
our unique capabilities as a leading
engineering group. Regardless of where
they work, we want our people to feel
safe and develop a sense of belonging
that will fuel our success in being a
leader in decarbonising maritime and
industrial activities around the globe.
Caring for our people
Attracting skilled, open, and curious people is fundamental to an engineering
company like Cavotec. For close to 50 years we have pioneered innovative solutions
and are determined to continuing to create value. With global presence, we can
reap the benefits of our different cultures, and create a learning organisation with
motivated employees.
EMPLOYMENT BY CONTRACT, TYPE AND GENDER
FTEs at 31 December 2021 2022 2023
Women/men Total Women/men Total Women/men Total
Permanent, women/men 109/444 553 103/459 562 111/516 627
Temporary, women/men 8/42 50 9/60 69 7/30 37
Full-time, women/men 112/485 597 109/518 627 112/541 653
Part-time, women/men 5/1 6 3/1 4 6/5 11
Total FTEs, women/men 117/486 603 112/519 631 118/546 664
Percentage women/men of total FTEs 19%/81% 100% 18%/82% 100% 18%/82% 100%
===== SIDA 35 =====
Annual and Sustainability Report | Cavotec 33
SUSTAINABILITY REPORT |
Employer attraction
For Cavotec to remain innovative and competitive, we need to attract, develop, and retain top-talents. We believe that our purpose of
bringing high-quality solutions that drive the sustainability transition of our customers, both regarding safety and decarbonisation, can
attract talented engineers that wants to make a difference. We believe that the key to retain our employees is to focus on health and
safety, to be a responsible employer, and to offer development programs.
EMPLOYEES BY REGION AND CONTRACT
FTEs at 31 December 2021 2022 2023
Permanent/temporary Total Permanent/temporary Total Permanent/temporary Total
Asia 111/6 117 129/39 168 159/23 182
Europe 368/43 401 361/29 390 390/11 401
North America 28/1 29 28/0 28 27/0 27
Middle East 6/- 6 2/0 2 2/0 2
Oceania 50/- 50 42/1 43 49/3 52
Total 553/50 603 562/69 631 627/37 664
EMPLOYEES BY FUNCTION AND AGE
FTEs at 31 December,
% of total 2021 2022 2023
Women/men
Age <30/
30-50/>50 Women/men
Age <30/
30-50/>50 Women/men
Age <30/
30-50/>50
Cavotec Management Team 13%/87% 0%/26%/74% 14%/86% 0%/43%/67% 14%/86% 0%/43%/57%
Division Management Teams
and Group functions 23%/77% 10%/80%/10% 19%/81% 0%/67%/33% 15%/85% 0%/70%/30%
Employees 19%/81% 6%/76%/18% 18%/82% 10%/65%/25% 18%/82% 8%/66%/25%
Total 19%/81% 6%/77%/17% 18%/82% 10%/64%/26% 18%/82% 8%/66%/26%
NEW EMPLOYEES HIRES AND EMPLOYEE TURNOVER
2021 2022 2023
New employee
hires/
% of total
Employee
turnover/
% of total
New employee
hires/
% of total
Employee
turnover/
% of total
New employee
hires/
% of total
Employee
turnover/
% of total
Women 26/4% 20/3% 37/6% 38/6% 33/22% 28/4%
Men 96/16% 37/6% 171/27% 142/23% 116/78% 88/14%
Age <30 7/1% 5/1% 52/8% 33/5% 34/23% 18/3%
Age 30-50 104/17% 48/8% 128/20% 110/17% 98/66% 74/12%
Age >50 10/2% 4/1% 28/4% 37/6% 17/11% 24/4%
Asia 42/7% 16/3% 97/15% 62/10% 52/35% 22/3%
Europe 66/11% 30/5% 99/16% 104/16% 72/48% 74/12%
North America 3/0.5% 6/1% 6/1% 2/0% 4/3% 8/1%
Middle East 0/0% 0/0% 0/0% 1/0% 0/0% 0/0%
Oceania 10/2% 5/1% 6/1% 11/2% 21/14% 12/2%
Total 121/20% 57/9% 208/33% 180/29% 149/100% 116/18%
PERFORMANCE REVIEWS
2021 2022 2023
Women/men Total Women/men Total Women/men Total
Cavotec Management Team 100%/100% 100% 100%/100% 100% 100%/100% 100%
Division Management Teams
and Group functions 100%/100% 100% 100%/100% 100% 100%/100% 100%
Employees 78%/79% 79% 73%/79% 78% 83%/84% 93%
Total 80%/80% 80% 74%/81% 79% 85%/84% 84%
===== SIDA 36 =====
34 Cavotec | Annual and Sustainability Report34 Cavotec | Annual and Sustainability Report 2023
| SUSTAINABILITY REPORT
Occupational health and safety
Cavotec is committed to provide a safe
and healthy working environment for all
our employees. We integrate health and
safety in the management of our business
to prevent accidents and to protect
people at work, with a vision of zero work-
related accidents.
Overall, our operations do not imply high
safety risks. In general, our operations
handle smaller cuts and other incidents
that can be treated on site using bandaid.
We have a robust set of procedures and
standards to reinforce a strong health and
safety culture across the organisation. We
review any shortcomings in health and
safety management, learn from experience
to improve our performance. We
continuously assess the operational health
and safety aspects of our operations,
processes, and services, and act upon
safety improvements and incidents in
accordance with our escalation procedure.
Given our global presence and varied
operations, we are tailoring our
occupational health and safety routines to
suit each Cavotec site. Safety walks are
conducted at each operation center on a
regular basis. When safety improvements
are identified during these walks,
employees are invited to record safety
improvements and share them.
It is our ambition to certify all assembly
and production facilities to ISO 45001
or similar standard and follow equivalent
procedures at all other operations.
Cavotec’s largest unit is the Italian one
with 167 FTEs. The Italian facility is
ISO 45001 certified and procedures
such as weekly safety walk are carried
out. If a health and safety hazard is
identified during a weekly safety walk,
appropriate corrective actions are taken,
by for example creating a work group.
Each issue is recorded, and the staff is
informed when a corrective action has
been implemented and proven efficient.
In addition to weekly safety rounds,
the Italian site engage in a regionally
promoted “Work-health Program” that
encourages health initiatives. Following
the progress of the Italian facility, we are
working to implement efficient measures
at our other sites in all our countries
of operation, ensuring state of the art
occupational health and safety across the
organisation.
In 2023, we had 0 (0) non-fatal or fatal
injury arising out of or in the course
of work such as amputation of a limb,
laceration, fracture, hernia, burns, loss
of consciousness, and paralysis, among
others. Cavotec has not gathered
information about injuries in 2023 which
relate to for example minor burns, falls
and smaller cuts.
OCCUPATIONAL INJURIES
FTEs 2021 2022 2023
Number of
employees/
number of
non-employees
Rate in
relation to
total worked
hours
Number of
employees/
number of
non-employees
Rate in
relation to
total worked
hours
Number of
employees/
number of
non-employees
Rate in
relation to
total worked
hours
Fatalities due to work related injury 0/0 -/- 0/0 -/- 0/0 -/-
High consequences injury 0/0 -/- 0/0 -/- 0/0 -/-
Recordable injury 5/0 0.1/- 1/0 0/- N/A N/A
The rate is based on 200,000 worked hours.
===== SIDA 37 =====
Annual and Sustainability Report | Cavotec 35
SUSTAINABILITY REPORT |
The Code of Conduct sets the standard
for how Cavotec conducts its business,
ethically and in accordance with applicable
laws and regulations. The Code of Conduct
is supported by our Anti-Bribery Policy,
our Anti-Fraud Policy and our Gifts and
Entertainment Policy.
We have a zero-tolerance policy towards
all forms of corruption. In order to build
capacity and knowledge of corruption
and fraudulent behaviour, all our new
employees receive training on our internal
policies when joining Cavotec, as well as a
complete policy package. The onboarding
training is supplemented by additional
trainings covering issues such as anti-trust
and anti-bribery, which is done on a bi-
annual and/or on-demand basis. It is the
responsibility of each employee to read,
understand and comply with the policies.
We are committed to combating all forms
of corruption and acting professionally
and fairly in all our business activities and
relationships, wherever we operate. How
we manage anti-bribery and corruption
is governed by internal policies, and we
evaluate all potential business expansions
from a bribery and corruption perspective,
where we conduct a third-party due
diligence when high risks are identified.
It is the responsibility of all those working
with us to prevent, detect and report any
kind of corruption, bribery, or other forms of
unethical business conduct.
In 2023, there has not been any legal actions
regarding corruption, anti-competitive
behaviour or violations of anti-trust and
monopoly legislation.
Whistleblower function
Our whistleblower function is only available
internally. We have the intention to set
up at whistleblower function which is
available externally through our website
cavotec.com. When using the whistleblower
function, employees can be anonymous
and whistleblowers are protected against
retaliation.
In 2023, no reports were filed through the
whistleblower function.
Data and information security
In today’s digital world a responsible
business needs to reduce risks related to
cyber security and data privacy. Information
is a valuable asset to Cavotec and exercise
care when handling, receiving and storing
sensitive information from customers,
stakeholders and suppliers. Further, we
respect the privacy of all individuals and
the confidentiality of any personal data that
Cavotec holds about them. We commit
to continuously improve our data and
information security and to proactively
reduce risks. Through our Code of Conduct,
our employees are informed on how to
handle data and information. Any data
breaches are reported and appropriately
escalated. In 2023, no losses of customer
data or other personal data were reported.
Tax management
Tax matters are discussed with the Audit
Committee and governed by our Tax
Policy. Cavotec’s approach is to improve
tax efficiency by using tax credit initiatives
offered in the different countries where we
operate.
Cavotec and its subsidiaries pay tax in
the countries where value is generated
in accordance with local tax laws and
regulations. Cavotec does not engage in
aggressive or artificial transactions whose
sole or main purpose is to create a tax
advantage. If there is more than one way
to structure a transaction, Cavotec may
to optimise its tax situation by choosing
the option that achieves the Group’s
commercial objectives with the lowest tax
expense.
Cavotec’s tax declarations must be
submitted on time and comply with relevant
tax laws and regulations. Any material
errors or omissions that are discovered
in tax declarations must immediately be
reported to the relevant tax authorities.
Business ethics
To be the business partner of choice for customers and suppliers, we must uphold
high business ethics. For us, business ethics is also about being a good citizen
and having a responsible tax management.
===== SIDA 38 =====
36 Cavotec | Annual and Sustainability Report36 Cavotec | Annual and Sustainability Report 2023
| SUSTAINABILITY REPORT
Taxes must be paid when due. Tax inquiries
and audits by the authorities must be
answered openly and honestly and in a
timely manner. All Group companies must
have an updated transfer pricing policy that
follows OECD guidelines.
Suppliers
Our Supplier Code of Conduct sets out
the basis of our responsible sourcing
approach. It defines not only the
nonnegotiable minimum standards that
we ask our suppliers to respect when
conducting business with Cavotec, but also
the expression of values which are shared
throughout Cavotec, its various businesses
and affiliates and that we encourage our
suppliers to adhere to.
Our Supplier Code of Conduct covers,
among other things, respect for human
rights and fair labour practices, health and
safety, environment, business ethics as well
reporting requirements. It is applicable to
all our suppliers including their corporate
bodies, employees, representatives,
subcontractors and sales partners. It
shall be signed by the supplier, whereby
it commits to adopt and comply with the
Code of Conduct.
Cavotec has not yet collected data about
the number of direct suppliers that has
signed the Supplier Code of Conduct.
Target 7.2 means that by
the year 2030, the share
of renewable energy in the
global energy mix must have
increased significantly. We
contribute to this develop-
ment by, for example, installing shore power
connections in vessels and electrifying cable
reels. In this way, we increase the opportunity
for our customers and our customers’ custom-
ers to use renewable energy.
Target 11.6 means that the
cities’ negative environmental
impact per capita must be
reduced by 2030 at the lat-
est with special attention to
air quality and municipal and
other waste management. We contribute to the
goal through our solutions that make the air
cleaner and reduce noise in ports and terminals.
In this way, urban environments are improved all
over the world thanks to our solutions.
Target 8.2 means that workers’
rights must be protected and
safe and secure working envi-
ronments must be promoted
for all workers. Through, for
example, our automatic moor-
ing solutions, we contribute to improving working
conditions for sailors and dock workers. Another
example is the use of shore power solutions,
which contributes to improved working condi-
tions thanks to reduced noise and diesel fumes.
Target 16.5 means that
corruption and bribery in all
its forms must be significantly
reduced. We contribute to the
goal by having zero tolerance
for corruption and bribery in all
parts of our value chain.
Target 9.4 means that
infrastructure and industries
must be upgraded and
modernised by 2030 to
make them sustainable,
with increased resource use
efficiency and greater introduction of clean
and environmentally friendly technologies and
industrial processes. We contribute to the target
by retrofitting and equipping vessels and cranes
with electrical solutions that significantly reduce
greenhouse gas emissions. Through our charg-
ing solutions, we make it possible for the mining
industry, among other things, to use electricity
driven, heavy-duty trucks in its operations.
Our contribution to the UN SDGs
Through our offer and operations, we contribute to the UN Sustainable
Development Goals. Cavotec most clearly contributes to five of the 17 UN
Sustainable Development Goals.
===== SIDA 39 =====
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Annual and Sustainability Report 2023 | Cavotec 37
SUSTAINABILITY REPORT |
===== SIDA 40 =====
38 Cavotec | Annual and Sustainability Report 2023
A. REMUNERATION GOVERNANCE
AND PRINCIPLES
1. Shareholder engagement
The articles 734 et seq. CO of the Swiss
Code of Obligations (“CO”) – which, as of
1. January 2023 and with respect to the
financial year (“FY”) 2023, have replaced
the previous applicable Ordinance Against
Excessive Compensation at Public
Corporations (VegüV) – require listed
companies incorporated in Switzerland to
publish a remuneration report.
Cavotec SA (the “Company” or
“Cavotec”) is a Swiss incorporated
company but listed on Nasdaq Stockholm,
Sweden. The corporate governance
of Cavotec is therefore based on both
Swiss and Swedish rules and regulations,
including the CO and the Swedish Code
of Corporate Governance (Sw. Svensk
kod för bolagsstyrning).
This remuneration report (the
“Remuneration Report”) for the FY2023
has been prepared in accordance with
articles 734 et seq. CO and describes,
inter alia, Cavotec’s compensation system
and philosophy, and provides details of
the remuneration paid to the Company’s
board of directors (the “Board”) and to
the Company’s chief executive officer (the
“CEO”) in 2023.
Under the CO, the maximum aggregate
remuneration for the members of the
Board and of the management team
is subject to approval by the general
meeting of shareholders upon proposal
by the Board. In addition, certain
matters relating to remuneration must be
governed by the Company’s articles of
association, including the details of such
votes on remuneration and the principles
governing remuneration. Cavotec’s
articles of association (the “Articles of
Association”) include these matters
regarding remuneration in Articles 16a et
sec. and can be viewed online at: http://
ir.cavotec.com -> Corporate Governance
-> Articles of Association.
The key provisions of the Articles of
Association are summarized below:
• Votes on remuneration (Article 16b):
Every year, the Company’s annual
general meeting (the “AGM”) votes
separately and bindingly on the
maximum aggregate remuneration of
the Board for the term of office until
the next AGM and on the maximum
aggregate remuneration of the CEO
(fixed and variable components) for the
subsequent FY.
• Loans and credits (Article 16j): Loans
and credits may not be granted to
members of the Board or the CEO.
• Additional amount for a newly appointed
CEO (Article 16c): If the maximum
aggregate remuneration already
approved by the AGM is not sufficient
to cover the remuneration for a newly
appointed CEO, the Company may pay
an additional amount up to 100% of the
last maximum aggregate remuneration
amount approved.
Starting from the FY2024, following
an assessment by the Company of its
organization (and in particular the internal
decision-making process), the Company
will formally consider not only the CEO to
form part of the Cavotec’s management
team, but also additional members working
for the management team of Cavotec who
have substantial decision-making power
(the “Management Team”). For this
reason, the Remuneration Report starting
from the FY2024 (AGM 2025) will provide
additional information not only related to
the CEO, but also to the Management
Team in accordance with the above-
mentioned extended definition. To reflect
this assessment, the Board will propose
to the 2024 AGM to update the Articles of
Association (in particular the 16a et sec.)
accordingly.
Any reference to “Management”
respectively “Management Team” in this
Remuneration Report for the FY2023 and
limited for the FYs up to and including
FY2023, refers to the CEO only.
In line with the above, and in particular
the above-described assessment of the
Company regarding its Management
Team, the Board will submit three
separate remunerations related proposals
for shareholder approval at the 2024 AGM
as illustrated in Table 1:
TABLE 1: REMUNERATION-RELATED SHAREHOLDER APPROVALS
Object Action at 2024 AGM 2024 2025 2026
Remuneration report 2023 approval of the 2023 remuneration report
Board remuneration 2024 approval Board remuneration for AGM 2024
to AGM 2025 (term of office)
Management Team
remuneration 2024*
* Only for this year in the 2024 AGM
approval of the Management Team
remuneration for FY2024, taking into
consideration the maximum aggregate
remuneration amount of EUR 2,200,000 for
the CEO for FY2024 that has already been
approved by the 2023 AGM*
Management Team
remuneration 2025
approval of the Management Team
remuneration for FY2025
Beginning
of the FY
Jan 01
Beginning
of the FY
Jan 01
Beginning
of the FY
Jan 01
AGM
May
AGM
May
AGM
May
| REMUNERATION REPORT
Remuneration report 2023
===== SIDA 41 =====
Annual and Sustainability Report 2023 | Cavotec 39
• This Remuneration Report for the
FY2023 (consultative vote).
• The maximum aggregate remuneration
amount for the Board for the term of
office from 2024 AGM to 2025 AGM
(binding vote).
• The maximum aggregate remuneration
amount for the Management Team (as
defined above) for the FY2024 that
started January 1, 2024, and that will end
on December 31, 2024 (binding vote),
taking into consideration the maximum
aggregate remuneration amount of EUR
2,200,000 for the CEO for the FY2024
business year that has already been
approved by the 2023 AGM.
• The maximum aggregate remuneration
amount for the Management Team (as
defined above) for the (next) FY2025
starting January 1, 2025, and that will
end December 31, 2025 (binding vote).
With respect to the FY2022 and FY2023
the following was implemented:
• At the 2022 AGM held on June 2, 2022,
shareholders approved (i) a maximum
aggregate amount of EUR 0.5 million
for the remuneration for the Board
for the term of office from 2022 AGM
to 2023 AGM; and (ii) a maximum
aggregate amount of EUR 2,900,000
for the remuneration for the CEO for the
FY2023 started January 1, 2023, and
that ended on December 31, 2023.
• At the 2023 AGM held on June 1, 2023,
shareholders approved (i) a maximum
aggregate amount of EUR 0.5 million
for the remuneration for the Board
for the term of office from 2023 AGM
to 2024 AGM; and (ii) a maximum
aggregate amount of EUR 2,200,000
for the remuneration for the CEO for the
FY2024 year started January 1, 2024,
and ending December 31, 2024.
2. Governance on remuneration
matters
The decision authority on remuneration
matters is summarized in Table 2.
The current members of Cavotec’s
remuneration committee (the
“Remuneration Committee”) are
Keith Svendsen, Patrik Tigerschiöld and
Peter Nilsson (the latter as chairman;
the “Chairman of the Remuneration
Committee”).
Members of the Remuneration Committee
are elected annually and individually by
the shareholders at the respective AGM.
The Chairman of the Remuneration
Committee reports to the full Board after
each Remuneration Committee’s meeting.
The minutes of the meetings are made
available to the members of the Board. The
CEO and Cavotec’s chief human resources
officer (CHRO) attend the Remuneration
Committee’s meetings in an advisory
function but are excluded from certain
discussions. The Remuneration Committee
may decide to consult an external advisor
on specific remuneration matters.
3. Activities of the Remuneration
Committee during FY 2023
The Remuneration Committee meets as
often as business requires but at least
once per year.
The Remuneration Committee held five
meetings in FY2023.
The Remuneration Committee has the
following duties and competences:
• Reviewing and advising the Board on
the terms of appointment of the CEO.
• Reviewing working environments and
succession planning for the CEO and
other members of senior management.
• Reviewing the terms of the employment
arrangements with the CEO and other
members of senior management so
as to develop consistent group-wide
employment practices subject to
regional differences.
• Reviewing of and making proposals to
the Board on the remuneration of the
members of the Board, the CEO and
other members of senior management.
• Reviewing the terms of the Company’s
short- and long-term incentive plans.
• Submission of a draft of the
Remuneration Report to the Board.
Details on Remuneration Committee’s
members and their meeting attendance
are provided in Cavotec’s Corporate
Governance Report on page 46.
4. Remuneration principles
Cavotec’s remuneration programs are
designed to recognize and reward
performance, enabling the organization
to attract, motivate and retain talented
employees who drive performance to
ensure both sustained growth and value
creation.
The compensation of the Management
Team and Board members is reviewed
on an annual basis to ensure continued
alignment with the Cavotec’s group’s (the
“Group”) strategy and market practice.
B. REMUNERATION SYSTEM
1. Remuneration system of the Board
To ensure its independence in fulfilling its
supervisory duties, the remuneration of
the Board is fixed and does not contain
any variable component.
The chairman of the Board receives a
fixed annual base fee of EUR 95,000.
TABLE 2: GOVERNANCE ON REMUNERATION MATTERS
CEO
Remuneration
Committee Board AGM
Remuneration principles (Articles of Association) Recommends Proposes Approves
Remuneration report Recommends Proposes Approves
Remuneration principles and system for the Board and the CEO Recommends Review Approves
Remuneration principles and system for the Management Team Proposes Review Review Approves (as
of FY2024)
Maximum aggregate amount of the remuneration for the Board members Proposes Review Approves
Maximum aggregate amount of the remuneration of the CEO Proposes Recommends Approves
Maximum aggregate amount of the remuneration of the Management Team Proposes Review Recommends Approves
REMUNERATION REPORT |
===== SIDA 42 =====
40 Cavotec | Annual and Sustainability Report 2023
The chairman of the Board is not entitled
to being compensated for assuming
additional committee responsibilities.
Other members of the Board receive a
fixed annual base fee and fixed fees for
membership in Board’s committees.
The amounts of the base fee and
committee membership fees, as illustrated
in Table 3, reflect the responsibility and
time requirement inherent to the respective
function.
The base fee and committee membership
fees are paid 100% in cash.
2. Remuneration system of the
Management Team
The remuneration elements for the
Management Team consist of four
components:
a) salary
b) pension
c) other benefits
d) performance-based non-equity cash
compensation (“STIP”)
e) performance-based equity-based
incentives (“LTIP”)
For the FY2023 as part of this
Remuneration Report 2023, only the
remuneration of the CEO is summarized in
Table 4. Any reference to “Management”
or “Management Team” in this
Remuneration Report for the FY2023 and
limited for the FYs up to and including
FY2023 refers thus to the CEO only.
Starting from the FY2024, the aggregate
remuneration of the Management Team
(as defined above), including the CEO,
will be accordingly reflected as part of
the Remuneration Report for the FY2024
et sec.
a) Base salary
Base salary is the fixed remuneration paid
to employees for carrying out their role.
It is designed to be attractive and market
competitive and is established considering
the following factors:
• scope and responsibilities of the role,
as well as qualifications and experience
required to perform the role, market
value of the role in the location in which
Cavotec competes for talent;
• skills and expertise of the individual in
the role.
The base salary is paid out to the
Management Team in twelve equal
monthly cash instalments.
b) Pension benefits
The purpose of pension benefits is to
provide security for employees and their
dependents in the event of retirement,
sickness, inability to work and death.
The Management Team’s members
participate in the social insurance and
pension plans in the countries where their
employment contracts were entered into.
The plans vary according to local market
practice and legislation; at a minimum
they reflect the statutory requirements of
the respective countries. In line with local
employment practice for Swiss employees,
Management Team’s members under
Swiss employment contracts are
covered by the Company’s compulsory
occupational pension scheme.
c) Other benefits
In addition, Cavotec aims to provide
competitive employee benefits. Benefits
are considered from a global perspective,
while appropriately reflecting differing
local market practice and employment
TABLE 3: REMUNERATION SYSTEM OF THE BOARD FOR ONE TERM OF OFFICE, IN EUR (GROSS AMOUNT)
Base fee
Patrick Tigerschiöld (Chairman) 95,000
Member 35,000
Committee fee Chair Member
Audit Committee 10,000 5,000
Remuneration Committee 10,000 5,000
TABLE 4: REMUNERATION SYSTEM OF THE CEO
Fixed Pay Variable Pay
Base Salary Pension & other benefits Short-term incentive plan (STIP) Long-term incentive plan (LTIP)
Purpose Attract and retain Risk protection, Market
competitiveness
Focus on the delivery of the year’s
commitments
Focus on the long-term success
of the Group and align with
shareholders’ interests
Performance period – – 1 year 3 years
Key drivers Role, responsibility,
experience
Legal requirements &
market practice
Group, Division and personal
performance (if relevant)
Group long-term performance
Reward instrument Cash Pension, insurance plans
and cash
Cash Performance shares
KPIs – – Revenues, EBIT, Cash flow EPS (65%), Relative TSR (35%)
Target incentive – – 80% of base salary for the CEO,
40% of base salary for CMT
members
60% of base salary for the CEO,
40% of base salary for CMT
members
Payout range – – 0–100% of target amount for each
KPI
0-100% of number of granted PS
for each KPI
Impact of share price
on payout value
– – – Yes
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Annual and Sustainability Report 2023 | Cavotec 41
conditions. For the Management Team’s
members, benefits may include local
market benefits such as transportation
allowances, health cover, etc. The
monetary value of these remuneration
elements as disclosed in the remuneration
Table 4 is based on the actual amount
paid as well as the best estimate for the
amounts yet to be paid.
d) Short-Term Incentive Plan
(performance based non-equity cash
compensation or STIP)
The short-term incentive plan (STIP) is the
cash-based element of the variable pay
for inter alia the Management Team. Its
objective is to:
• encourage performance and motivates
the beneficiaries to work together for
the sustainable success of the Group;
• enable the alignment of objectives
throughout the Company.
The current STIP framework was
introduced in 2018 to provide a simple,
fair and transparent approach.
Plan participants at Group’s and division’s
level are incentivized based on the
achievement of financial performance
targets, which are determined by the Board
at the beginning of each financial year. The
performance targets are defined in line
with the year’s commitments to contribute
to the long-term strategy. They are aligned
with business priorities, with the aim of
achieving sustainable profitability.
These targets represent commercially
sensitive information and are therefore not
disclosed.
Pay-outs under the STIP are calculated
based on the achievement level of the
respective performance targets, with 100%
achievement resulting in 100% pay-out.
For each financial performance target,
there is a minimum threshold performance
levels, below which there is no pay-out.
e) Long-Term Incentive Plan
(performance based equity-based
incentives or “LTIP”)
The previously equity based long term
incentive plan framework in place, so called
2021-2023 LTIP, has expired in FY2023.
In 2023, the Board established a new
equity based long term incentive plan
framework called 2023-2025 LTIP (“2023-
2025 LTIP”).
The LTIP is a three-year performance
share-based incentive plan. The 2023-
2025 LTIP rewards the long-term
performance between Jan 1, 2023, and
Dec 31 2025 (performance period).
Its purpose is to foster long-term value
creation for the Group by providing the
Management Team and other eligible key
managers with the possibility:
• to become shareholders or to increase
their shareholding in the Company;
• to participate in the future long-term
success of Cavotec; and
• to further align the long-term interests of
the plan participants with those of the
shareholders.
The Management Team, i.e. including
the CEO, and a selected number of
senior managers are eligible for the.
The 2 LTIP grants performance shares
to the participants at the beginning of
the period as a percentage of the base
salary. The individual grants under the
LTIP are determined based on the role
and responsibilities, taking into account
external market levels.
Awards under the LTIP are a contingent
entitlement to receive Cavotec shares at
the end of the three-year performance
period (vesting), provided certain
performance targets are achieved and
subject to continuous employment.
The number of shares that will vest at the
end of the performance period depends
on the performance of two indicators:
• 35% of the award is linked to the Total
Shareholder Return (“TSR”) measured
over three years relative to the OMX
Nordic Industry – Industrial Index; and
• 65% of the award is linked to the
Earnings per Share (“EPS”).
In case the performance does not reach
certain pre-determined thresholds, no
performance shares will vest under the
LTIP.
EPS targets represent commercially
sensitive information and are therefore not
disclosed.
C. EMPLOYMENT CONDITIONS
The members of the Management
Team are employed under contracts of
unlimited duration with a notice period
up to a maximum of twelve months.
Employment contracts for the members
of the Management Team include non-
competition agreements not exceeding a
period of twelve months following the end
of employment.
D. REMUNERATION AWARDED TO
MEMBERS OF GOVERNING BODIES
1. Base
The section below is in line with Swiss
law and specifically with art. 734a et
seq. CO which require disclosure of
remuneration paid (directly or indirectly) to
members of the Board and Management
Team (which, for the FYs up to and
including FY2023, is limited to the CEO).
For the Remuneration Report covering
the FY2023, the remuneration paid to
members of the Board and to the CEO is
shown separately.
Starting from the Remuneration Report
for the FY2024, the following will apply:
(i) the remuneration paid to members
of the Board will be shown as a whole
and separately for each member; (ii) the
remuneration paid to the Management
Team will be shown in aggregate, while the
highest-paid member of the Management
Team will be shown separately.
Remuneration paid directly or indirectly
to former members of the Board or the
Management Team in connection with their
former activity as a member of a corporate
body of the Company will also be included.
2. Remuneration awarded to the Board
for the term between 1 June 2023 and
4 June 2024 (Audited)
The remuneration awarded to the Board
members for the term between the AGM
2023 (1 June 2023) and the AGM 2024
(4 June 2024) is summarized in Table 5.
Compensation paid to the Board
members for non-compete arrangements
(art. 734a para. 2 no. 10 CO) as well as
permitted joining bonuses (art. 734a para.
2 no. 5 CO) or any other remuneration as
per art. 734a para. 2 CO, if any, are also
summarized in Table 5.
REMUNERATION REPORT |
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42 Cavotec | Annual and Sustainability Report 2023
3. Remuneration awarded to the CEO
for FY 2023 (Audited)
For FY 2023, the CEO has been awarded
base salary, variable remuneration,
pension, and other benefits, in line with
the remuneration system.
The remuneration of the CEO is
summarized in Table 6.
Compensation paid to the CEO for non-
compete arrangements (art. 734a para.
2 no. 10 CO) as well as permitted joining
bonuses (art. 734a para. 2 no. 5 CO) or
any other remuneration as per art. 734a
para. 2 CO, if any, are also summarized in
Table 6.
4. Loans granted to members of the
Board or the CEO
In accordance with Article 16j of the
Articles of Association, the Company does
not grant loans or extend credit to the
members of the Board and to the CEO.
E. REMUNERATION TO FORMER
MEMBERS OF GOVERNING BODIES
During the term of 1 June 2023 until 4
June 2024, no payments were made to
former members of the Board or related
parties.
F. RECONCILIATION OF AGM
REMUNERATION RESOLUTIONS
For the term from the 2023 AGM to the
2024 AGM, the 2023 AGM approved a
maximum aggregate remuneration amount
for the Board of EUR 0.5 million (covering
all pay, pension contribution, social charges,
etc.). Table 7 shows the reconciliation
between the remuneration that has been/will
be paid/granted for the respective term of
office and the maximum aggregate amount
approved by the shareholders.
The CEO’s maximum aggregate
remuneration amount for FY2024, i.e. for
the term started January 1, 2024, and
ending December 31, 2024, approved by
TABLE 5: REMUNERATION AWARDED TO THE BOARD
Remuneration for FY 2023,
in EUR Qualification Board fees
Social Security
Contributions Pension Total 2023 Total 2022
Niklas Edling Independent Director 40,000 1,400 2,120 43,520 43,520
Annette Kumlien Independent Director 45,000 1,575 2,385 48,960 48,960
Erik Lautmann Independent Director – – – – 48,096
Peter Nilsson Independent Director 45,000 1,575 2,385 48,960 –
Keith Svendsen Independent Director 40,000 1,400 2,120 43,520 43,520
Patrik Tigerschiöld Director (Chairman) 95,000 3,325 5,035 103,360 103,360
Total remuneration 288,320 287,456
Remuneration for FY 2023,
in CHF Qualification Board fees
Social Security
Contributions Pension Total 2023 Total 2022
Niklas Edling Independent Director 38,872 1,361 2,060 42,293 43,725
Annette Kumlien Independent Director 43,731 1,531 2,318 47,579 49,191
Erik Lautmann Independent Director – – – – 48,323
Peter Nilsson Independent Director 43,731 1,531 2,318 47,579 –
Keith Svendsen Independent Director 38,872 1,361 2,060 42,293 43,725
Patrik Tigerschiöld Director (Chairman) 92’321 3’231 4’893 100’445 103,847
Total remuneration 280,189 288,810
CHF/EUR exchange rate 0.9717973
TABLE 6: REMUNERATION OF THE CEO
Amounts for FY 2023
in EUR Base Salary
Short-term
Incentive
Plan(1)
Long-term
Incentive
Plan(2)
Benefits in
kind(3)
Social Security,
Insurance
and Pension
Contributions(4) Total 2023 Total 2022
David Pagels 481,238 127,236 – 3,689 364,823 976,986 550,093
Amounts for FY 2023
in CHF Base Salary
Short-term
Incentive
Plan(1)
Long-term
Incentive
Plan(2)
Benefits in
kind(3)
Social Security,
Insurance
and Pension
Contributions(4) Total 2023 Total 2022
David Pagels 467,666 123,648 – 3,585 354,534 949,433 552,683
CHF/EUR exchange rate 0.9717973
(1) As the objectives of the 2023 STIP were achieved, there is payout in 2024 for FY 2023.
(2) As the objectives of the 2021-2023 LTIP were not achieved, no shares to vest in 2024.
(3) Allowances (Child, school fees, health insurance and transportation, non-competition agreements).
(4) Pension contribution to the CEO has been made both in form of cash and defined contribution payments.
| REMUNERATION REPORT
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Annual and Sustainability Report 2023 | Cavotec 43
the 2023 AGM, is EUR 2.2 million (covering
fixed and variable pay, pension contribution,
social charges, etc.). Table 8 shows the
reconciliation between the remuneration
that has been/will be paid to the CEO for
FY2024 and the maximum aggregate
amount approved by the shareholders.
G. PARTICIPATION RIGHTS AND
OPTIONS
The participation rights and options
on such rights of each current Board’s
member and of the CEO, including their
close associates, as well as the name and
function of the members concerned (see
art. 734d CO), are described in Table 9.
H. EXTERNAL MANDATES
The external mandates of each current
Board’s member and of the CEO (see art.
734e CO) are described in Table 10.
I. LOANS
With respect to the FY2023, no loans
or credit facilities (still outstanding in
FY2023) granted by Cavotec to the
Board members, the CEO, former Board
members or the former CEO, exist.
J. NON-MARKET STANDARD
REMUNERATION OR LOANS GRANTED
TO CLOSELY ASSOCIATED PERSONS
No non-market standard remuneration
has been granted by Cavotec to persons
closely associated to members of the
Board or the CEO.
With respect to the FY2023, no loans
or credit facilities (still outstanding in
FY2023) granted by Cavotec to the Board
members, or the CEO exist.
TABLE 7: REMUNERATION APPROVED AND PAID/GRANTED FOR THE MEMBERS OF THE BOARD
Total remuneration granted
(paid/payable) in EUR
Maximum aggregate
amount approved in EUR
Status
AGM 2022 to AGM 2023 287,456 500,000 Approved (2022 AGM)
AGM 2023 to AGM 2024 288,320 500,000 Approved (2023 AGM)
2024 AGM to 2025 AGM – 500,000 Proposed (2024 AGM)
TABLE 8: REMUNERATION APPROVED AND PAID/GRANTED FOR THE CEO AND THE MANAGEMENT TEAM (AS OF FY2024)
Total remuneration granted
(paid/payable) in EUR
Maximum aggregate
amount approved in EUR
Status
FY 2022 2,984,689 2,900,000 CEO Approved (2021 AGM)
FY 2023 949,433 2,200,000 CEO Approved (2022 AGM)
FY 2024 – 2,200,000 CEO approved (2023 AGM)
FY 2024 – 2,800,000 CMT (without CEO) Proposed (2024
AGM)
TABLE 9: PARTICIPATION RIGHTS AND OPTIONS
The remuneration report must also include the participation rights in the Company
and options on such rights of each current member of the board of directors and
the executive board, including the members’ close associates, as well as the name
and function of the members concerned (art. 734d CO).
Participation
rights
Option on
participations right
Niklas Edling 83,599 –
Annette Kumlien 75,000 –
Peter Nilsson 212,180 –
Keith Svendsen – –
Patrik Tigerschiöld (Chairman) 1,598,000 –
David Pagels (CEO) 750,000 1,500,000
Total remuneration 2,718,779 1,500,000
TABLE 10: EXTERNAL MANDATES
According to art. 734e CO, it is required that activities of the board members as
well as the executive management in comparable positions in undertakings with
an economic purpose (“external mandates”) are disclosed in the compensation
report. The details must include the name of the relevant member, the name of the
undertaking and the function exercised. We suggest including this information in a
table and distinguishing between mandates in listed and in non-listed companies
(see art. 15b of the articles of association) as well as other relevant mandates. Also
note that while the articles of association do not limit mandates in e.g. companies
which are controlled by Cavotec, such mandates must still be diclosed in the
remuneration report. Please note that the provision on external mandates in art.
15b of the articles of association should be amended to include all members of the
management team (and not only the board members and the CEO).
Patrick Tigerschiöld: Chairman of Bure Equity AB, Mycronic AB, SNS Center for
Business and Policy Studies, and Yubico AB. Member of the Board of Ovzon AB.
Fellow of the Royal Swedish Academy of Engineering Sciences (IVA).
Nicklas Edling: CEO at ScandiNova Systems AB, member of the Board of HMS
Networks AB.
Annette Kumlien: COO Intrum AB and member of the Board of Dirac Research AB.
Keith Svendsen: CEO of APM Terminals, member of the Executive Leadership Team
at A.P. Moller-Maersk, director of Through Transport Mutual Insurance Association
Limited, independent provider of mutual insurance and related risk management
services to the international transport and logistics industry.
Peter Nilsson: Chairman of the Board of Lindab Group, Nilfisk A/S and Deputy
Chairman of Creaspac AB.
David Pagels: No other current assignment.
REMUNERATION REPORT |
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44 Cavotec | Annual and Sustainability Report 2023
Report of the statutory auditor
to the General Meeting of Cavotec SA
Lugano
Report on the audit of the remuneration report
Opinion
We have audited the remuneration report of Cavotec SA (the Company) for the year ended 31 December 2023. The au-
dit was limited to the information pursuant to article 734a-734f CO on pages 42 and 43 of the remuneration report.
In our opinion, the information pursuant to article 734a-734f CO in the remuneration report (pages 42 and 43) complies
with Swiss law and the Company’s articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities
under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the
remuneration report' section of our report. We are independent of the Company in accordance with the provisions of
Swiss law and the requirements of t he Swiss audit profession, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the tables marked 'audited' in the remuneration report, the
consolidated financial statements, the financial statements and our auditor’s reports thereon.
Our opinion on the remuneration report does not cover the other information and we do not express any form of assur-
ance conclusion thereon.
In connection with our audit of the remuneration report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent w ith the audited financial information in the
remuneration report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Board of Directors' responsibilities for the remuneration report
The Board of Directors is responsible for the preparation of a remuneration report in accordance with the provisions of
Swiss law and the Company's articles of incorporation, and for s uch internal control as the Board of Directors
determines is necessary to enable the preparation of a remuneration report that is free from material misstatement,
whether due to fraud or error. It is also responsible for designing the remuneration system and defining individual
remuneration packages.
Auditor’s responsibilities for the audit of the remuneration report
Our objectives are to obtain reasonable assurance about whether the information pursuant to article 734a-734f CO is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Swiss law and SA-CH will always detect a material misstatement when it exists.
PricewaterhouseCoopers SA, Piazza Indipendenza 1, casella postale, 6901 Lugano, Switzerland
Telefono: +41 58 792 65 00, www.pwc.ch
PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
===== SIDA 47 =====
Annual and Sustainability Report 2023 | Cavotec 45
Cavotec SA | Report of the statutory auditor to the General Meeting
Misstatements can aris e from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this remuneration report.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and maintain profes-
sional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement in the remuneration report, whether due to fraud or error, de-
sign and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropri-
ate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-
ate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's in-
ternal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re-
lated disclosures made.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with relevant
ethical requirements regarding independence and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safe-
guards applied.
PricewaterhouseCoopers SA
Laura Cazzaniga
Licensed audit expert
Thomas Wallmer
Licensed audit expert
Auditor in charge
Lugano, 11 April 2024
Report of the statutory auditor
to the General Meeting of Cavotec SA
Lugano
Report on the audit of the remuneration report
Opinion
We have audited the remuneration report of Cavotec SA (the Company) for the year ended 31 December 2023. The au-
dit was limited to the information pursuant to article 734a-734f CO on pages 42 and 43 of the remuneration report.
In our opinion, the information pursuant to article 734a-734f CO in the remuneration report (pages 42 and 43) complies
with Swiss law and the Company’s articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our responsibilities
under those provisions and standards are further described in the 'Auditor’s responsibilities for the audit of the
remuneration report' section of our report. We are independent of the Company in accordance with the provisions of
Swiss law and the requirements of t he Swiss audit profession, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
The Board of Directors is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the tables marked 'audited' in the remuneration report, the
consolidated financial statements, the financial statements and our auditor’s reports thereon.
Our opinion on the remuneration report does not cover the other information and we do not express any form of assur-
ance conclusion thereon.
In connection with our audit of the remuneration report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent w ith the audited financial information in the
remuneration report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Board of Directors' responsibilities for the remuneration report
The Board of Directors is responsible for the preparation of a remuneration report in accordance with the provisions of
Swiss law and the Company's articles of incorporation, and for s uch internal control as the Board of Directors
determines is necessary to enable the preparation of a remuneration report that is free from material misstatement,
whether due to fraud or error. It is also responsible for designing the remuneration system and defining individual
remuneration packages.
Auditor’s responsibilities for the audit of the remuneration report
Our objectives are to obtain reasonable assurance about whether the information pursuant to article 734a-734f CO is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Swiss law and SA-CH will always detect a material misstatement when it exists.
PricewaterhouseCoopers SA, Piazza Indipendenza 1, casella postale, 6901 Lugano, Switzerland
Telefono: +41 58 792 65 00, www.pwc.ch
PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
===== SIDA 48 =====
46 Cavotec | Annual and Sustainability Report 2023
Since Cavotec SA (“Cavotec” or the
“Company”) is a Swiss company listed
on Nasdaq Stockholm, the corporate
governance of Cavotec is based on
Swiss and Swedish rules and regulations,
such as the Swiss Code of Obligations
(the “CO”) and the Swedish Code of
Corporate Governance (Sw. Svensk kod
för bolagsstyrning) (the “Code”). This
corporate governance report reflects
the changes occurred with the Swiss
corporate law reform that came into force
on 1 January 2023.
THE SWEDISH CODE OF CORPORATE
GOVERNANCE
Swedish companies with shares admitted
to trading on a regulated market in Sweden,
including Nasdaq Stockholm, are subject
to the Code. The Code is a codification
of best practices for Swedish listed
companies based on Swedish practices
and circumstances. Cavotec has decided
to apply the Code, however, the Company
is not obliged to comply with every rule in
the Code as the Code itself provides for the
possibility to deviate from the rules, provided
that any such deviations and the chosen
alternative solutions are described and
the reasons therefore are explained in the
corporate governance report (according to
the so-called “comply or explain principle”).
Deviations that the Company is aware of
have, as far as possible, been explained
in the Company’s corporate governance
report.
SHAREHOLDERS’ MEETINGS
General
Shareholders’ rights to resolve on company
matters are exercised at shareholders’
meetings. An ordinary shareholders’
meeting is to be held yearly within
six months following the close of the
business year. It is called by the Board of
Directors or, if necessary, by the auditors.
Extraordinary shareholders’ meetings
may be called by the Board of Directors,
the liquidators or the auditors as often as
necessary to safeguard the interests of
the Company. Shareholders’ meetings are
held at the domicile of the Company or at
such other place in Switzerland and abroad
as the Board of Directors shall determine.
The shareholders’ meetings, deviating
from the Code, will be held in English and
information and material will be available
in English only. This is in accordance with
an exemption granted by the Swedish
Financial Supervisory Authority. The
minutes of shareholders’ meetings, and
the election results with details of exact
percentage of votes for and against
containing the resolutions and the election
results with details of the exact percentage
of votes for and against, will be published
on the Company’s website within 15 days
following the general meeting.
Right to attend shareholders’
meetings
All shareholders who are registered
directly in Euroclear Sweden’s and SIX
SIS’s share registers on the record
date, as applicable, and who notify the
Company of their intention to attend the
shareholders’ meeting at the latest by the
date specified in the convening letter, shall
be entitled to attend the shareholders’
meeting and vote according to the
number of shares they hold. Shareholders
may attend shareholders’ meetings in
person or through a proxy. The Board of
Directors may provide that shareholders
CAVOTEC CORPORATE GOVERNANCE STRUCTURE
Articles of Association
Code of Conduct
Internal Regulations
Group Policies
Shareholders
Auditors
Audit Committee
Nomination Committee
Remuneration Committee Board of Directors
Chairman of the Board
Cavotec Management Team
CEO
Chief Financial Officer
President, Ports & Maritime
President, Industry
President, Services
Chief Legal & Human Resources Officer
Senior VP Global Operations
(*)
(*) To follow the rules that apply to
Swiss companies, the Board of
Directors has decided that the
Nomination Committee shall
be established by the Board
of Directors. The composition
of the Nomination Committee
shall, however, be in line with the
Swedish Corporate Governance
Code.
| CORPORATE GOVERNANCE REPORT
Corporate governance report 2023
===== SIDA 49 =====
Annual and Sustainability Report 2023 | Cavotec 47
who are not present at the place of the
shareholders’ meeting may exercise their
rights by electronic means. Shareholders
may usually register for shareholders’
meetings in several different ways, which
are described in the Notice of meeting
(the “Notice of Meeting”).
Notice of shareholders’ meetings and
shareholder initiatives
The Notice of Meeting is given by means
of a publication in the Swiss Commercial
Gazette or by letter to the shareholders of
record as well as through a press release.
Between the day of the publication or
the mailing of the notice and the day of
the meeting there must be a time period
of not less than 20 calendar days. The
notice of the shareholders’ meeting must
indicate in particular the agenda items to
be discussed, the motions of the Board of
Directors together with a short explanation,
and, if applicable, the shareholders’
motions together with a short explanation.
The notice will also be published on
the Company’s website. At the time of
the notice, the Company may publish in
Svenska Dagbladet an announcement with
information that the notice has been issued.
Shareholders may request that items
be placed on the agenda of a meeting
convened by the Board of Directors,
provided they together hold at least 0.5 per
cent of the share capital or of the votes.
Stating the purpose of the meeting and
the agenda to be submitted, one or more
shareholders representing at least five per
cent of the share capital may request the
Board of Directors, in writing to call an
extraordinary shareholders’ meeting. In
such case, the Board of Directors must call
a shareholders’ meeting within two weeks.
Nomination Process
The process for the nomination of Board
members for Cavotec is construed in
light of the Code, while still respecting
Swiss laws and regulations applicable
to a Swiss company. The ultimate goal
has been to adopt a Nomination Process
that is open and transparent to all
shareholders and stakeholders.
In October 2023 the Committee began
preparing a proposal for the Board of
Directors to be submitted to the Annual
General Meeting 2024.
The proposal of the Nomination
Committee will be published in the
invitation to the Annual General Meeting.
External auditor
The Audit Committee and the Board of
Directors are responsible for presenting
proposals on the appointment of the
auditors to the Annual General Meeting
and are also responsible for resolving
on the remuneration to the auditor and
any issues on resignation or dismissal of
the auditor. This constitutes a deviation
from the Code that prescribes that the
Nomination Committee is responsible
for presenting proposals to the Annual
General Meeting on the election and
remuneration of the external auditor. In
accordance with Swiss law, the Board
of Directors has decided that the Audit
Committee shall propose the auditors
to the Board of Directors, which in turn
shall present its proposals to the Annual
General Meeting. For the purpose of its
election by the Annual General Meeting
2024, the Audit Committee has proposed
to the Board of Directors to appoint
PricewaterhouseCoopers SA, Lugano, as
the independent auditor of the Company
for the business year 2024. Thomas
Wallmer is the auditor in charge.
THE BOARD OF DIRECTORS
The members of the Board of Directors
are elected by the shareholders’ meeting
for the period until the end of the next
CORPORATE GOVERNANCE REPORT |
Q422 REPORT
ANNUAL REPORT
BUDGET 2024 APPROVAL
Q223 REPORT
Q323 REPORT
Q123 REPORT
ANNUAL GENERAL MEETING
Q1
Q2Q3
Q4
Board of Directors’
Work Calendar
2023
JAN
FEB
MAR
APR
MAY
JUNJUL
AUG
SEP
OCT
NOV
DEC
===== SIDA 50 =====
48 Cavotec | Annual and Sustainability Report 2023
ordinary shareholders’ meeting. The Board
of Directors constitutes itself, as set out
in the Articles of Association, but by law
the Chairman of the Board of Directors is
elected by the shareholders’ meeting.
The members of the Nomination
Committee and the Audit Committee,
as well as the respective Chairmen, are
elected from and by the Board members.
The Remuneration Committee is elected
by the shareholders’ meeting and its
Chairman is elected by the Board, as
further described below in relation to the
description of each committee.
The Board of Directors is entrusted with
the overall management of the Company,
as well as with the supervision and
control of the management. The Board of
Directors is the ultimate executive body
of the Company and shall determine the
principles of the business strategy and
policies.
The Board of Directors shall exercise its
function as required by law, the Articles
of Association and the Board of Directors’
Internal Regulations. The Board shall
be authorised to pass resolutions on
all matters that are not reserved to the
general meeting of shareholders or to
other executive bodies by applicable law,
the Articles of Association or the Internal
Regulations.
By Swiss law, the Board of Directors has
in particular the following non-transferable
and inalienable duties:
a) the overall management of the
company and issuing the required
directives;
b) to determine the Company’s
organization;
c) organising the accounting, financial
control and financial planning systems
as required for management of the
company;
d) appointing and dismissing persons
entrusted with managing and
representing the company;
e) overall supervision of the persons
entrusted with managing the company,
in particular with regard to compliance
with the law, articles of association,
operational regulations and directives;
f) compiling the annual report,
preparing for the general meeting
and implementing its resolutions,
including interim published reports
and determination of the accounting
standard;
g) filing an application for a debt
restructuring moratorium and notifying
the court in the event that the company
is overindebted;
h) preparing the remuneration report.
By Swiss law, the Board of Directors
also has in particular the following
non-transferable responsibilities: (i)
decision pursuant to art. 653e CO
(preparation of the capital increase
report); (ii) decisions in connection with
capital increases pursuant to art. 652g,
653g, 653i (acknowledgement of capital
increase); (iii) decision pursuant to art.
653o (acknowledgement of capital
reduction); (iv) decisions pursuant to
art. 634b I CO (require outstanding
contributions on shares not fully paid
in); (v) to monitor the solvency of the
company and to take all actions within
the meaning of art. 725, 725a and
725b; and (vi) specific resolutions
pursuant to the Swiss Merger Act.
The Board of Directors held seven
ordinary Board meetings and four
extraordinary Board meetings for Cavotec
in 2023. In addition, 1 Board resolutions
have been deliberated by circular
resolution (without a Board meeting).
BOARD COMMITTEES
The Board of Directors currently has
three Board committees, the Nomination
Committee,the Audit Committeeand
the Remuneration Committee. The
BOARD AND COMMITTEE MEETINGS IN CAVOTEC IN 2023
Board Audit Remuneration Nomination
Held
(ordinary and
extraordinary) Attended Held Attended Held Attended
Held
(including via
circular resolution) Attended
Henrik Blomquist 3 3
Fabio Cannavale 3 1
Peer Colleen 3 3
Niklas Edling 11 11 8 8
Thomas Ehlin 3 3
Keith Svedsen 11 10 5 5
Annette Kumlien 11 11 8 8
Erik Lautmann 11 5 5 2
Peter Nilsson 11 4 5 3
Patrik Tigerschiöld 11 11 8 6 5 5 3 3
| CORPORATE GOVERNANCE REPORT
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Annual and Sustainability Report 2023 | Cavotec 49
Remuneration Committee has been
elected by the shareholders’ meeting,in
accordance with Swiss law (in particular
the CO that - as of 1 January 2023 - has
implemented the previous regulation
set by the Minder Ordinance). The
composition and tasks of the Board’s
Committees are regulated in the Board
of Directors’ Internal Regulations.
The composition and tasks of the
Remuneration Committee are regulated
in the Articles of Association as well
as in the Board of Directors’ Internal
Regulations. Below is a brief description of
the Committees as per the current Internal
Regulations (which are continuously
reviewed and if deemed appropriate by
the Board of Directors amended). The
shareholder can request to the Board of
Directors to issue information in writing or
electronically concerning the organisation
of the business management.
Nomination Committee
The Nomination Committee shall be a
committee established by the Board
of Directors of the Company. This is in
line with Swiss law but will constitute a
deviation from the Code that prescribes
that the Nomination Committee shall be
determined by the shareholders. To follow
the rules that apply to Swiss companies
the Board of Directors has decided that
the Nomination Committee shall be
established by the Board of Directors. The
composition of the Nomination Committee
shall however be in line with the Code.
The Nomination Committee shall ensure
that the Company has a formal and
transparent method for the nomination
and appointment of Board members. The
objectives of the Nomination Committee
are to regularly review and, when
appropriate, recommend changes to the
composition of the Board of Directors
to ensure that the Company has, and
maintains, the right composition of the
members of the Board of Directorsto
effectively govern and provide guidance
to business, and identify and recommend
to the Board of Directors individuals for
nomination as members of the Board and
its Committees (taking into account such
factors as it deems appropriate, including
experience, qualifications, judgment
and the ability to work with other Board
members).
From October 2023, the Nomination
Committee members are Henrik Blomquist
(representing Bure Equity AB), Per
Colleen, who represents TomEnterprise
Private AB (Thomas von Koch), Thomas
Ehlin (representing The Fourth Swedish
National Pension Fund – AP4), Fabio
Cannavale, who represents Nomina SA
and Patrik Tigerschiöld (Chairman of
Cavotec’s Board of Directors).
Audit Committee
The objective of the Audit Committee
is to assist the Board of Directors in
discharging its responsibilities relative
to financial reporting and regulatory
compliance. The Audit Committee also
presents proposals on the election and
remuneration of the auditors to the Board
of Directors, which in turn present its
proposals to the Annual General Meeting
for the election. Members of the Audit
Committee shall exclusively comprise of
members of the Board appointed by the
Board in accordance with the Code. The
Audit Committee will comprise of not less
than three members with a majority to
be Independent Directors of the Board.
One member must have a financial or
accounting background.
The Audit Committee of Cavotec is
involved in a wide range of activities
including, inter alia, the review of all
quarterly, half - yearly and annual financial
statements prior to their approval by the
Board and release to the public. The
CORPORATE GOVERNANCE REPORT |
===== SIDA 52 =====
50 Cavotec | Annual and Sustainability Report 2023
Committee has periodic contact with
the auditors, PricewaterhouseCoopers,
through the PwC engagement partner
responsible for the Audit and through the
principal engagement manager, to review
any unusual matters and the effect of new
accounting pronouncements. As a matter
of policy, the Audit Committee meets with
the PwC engagement partner without the
presence of Management at least once
every year. Further, the Committee reviews
the annual audit plan, as prepared by the
auditors, including the adequacy of the
scopes of the audits proposed for the
principal locations and the proposed audit
fees. The engagement of the auditors
for non-audit services of significance
is approved in advance by the Audit
Committee.
At least once every year Management
gives a presentation to the Audit
Committee on the risk profile of the Group
and on the procedures in place for the
management of Risk. Risks related to the
potential impairment of assets and the
related provisions required for financial
exposures are reviewed and discussed
with Management at least once a year,
normally in conjunction with the third
quarter closing.
The Audit Committee of Cavotec met eight
times in 2023.
The current members of the Audit
Committee are Annette Kumlien
(Chairwoman), Patrik Tigerschiöld and
Niklas Edling.
Remuneration Committee
The main purpose of the Remuneration
Committee is to act as remuneration
committee pursuant to Swiss law against
excessive compensation with respect to
listed corporations. The Remuneration
Committee has in particular the following
duties and responsibilities:
1. Reviewing and advising the Board of
Directors on the terms of appointment
of the CEO;
2. Reviewing working environments and
succession planning for members of
the Management;
3. Reviewing the terms of the employment
arrangements with members of the
Management, as well as to develop
consistent group employment practices
subject to regional differences;
4. Reviewing of and making proposals
to the Board of Directors on the
remuneration of the members of the
Board of Directors and of the Chief
Executive Officer;
5. Reviewing the terms of the Company’s
short and long term incentive plans;
6. Submission of a draft of the
remuneration report to the Board of
Directors.
The Remuneration Committee and the
Board of Directors are thus together
responsible for presenting proposals
to the Annual General Meeting on the
remuneration of the members of the Board
of Directors and of the Chief Executive
Officer. This constitutes a deviation
from the Code that prescribes that the
Nomination Committee is responsible
for presenting proposals to the Annual
General Meeting on the fees and other
remuneration to the Board members.
The current members of the Remuneration
Committee in Cavotec are Peter Nilsson
(Chairman), Keith Svendsen and Patrik
Tigerschiöld.
In accordance with Art. 698 para 3 and
733 CO and with the Internal Regulations,
the Nomination Committee proposes to
elect the following Board members to be
part of the Remuneration Committee for
the year 2024/2025: Keith Svendsen,
Patrik Tigerschiöld and Peter Nilsson.
The Remuneration Committee of Cavotec
met five times in 2023.
Cavotec Management Team – CMT
The CMT is selected by the CEO and as
of December 31, 2023 consists of six
members (excluding the CEO), combining
Cavotec’s senior operational and
corporate functions.
The CMT fulfils the Group Management
role – empowered by the CEO – and
ensures efficient implementation of
strategic decisions into Cavotec’s global
organisation and leads local management
on key operational issues. The CEO,
defines and implements operational
strategy, policies, technical and
commercial developments, as well as new
acquisitions in line with targets set by the
Cavotec’s Board of Directors.
Cavotec’s operational structure is
reasonably flat in order to ensure that the
Group’s operations and decision-making
processes are efficient and responsive.
Strategic, Group-related operations are the
responsibility of the CEO with the support
of the CMT. All material decisions within
the day-to-day operations of the Company
are taken by the CEO.
REMUNERATION AND INCENTIVE
PLANS
Please refer to the Remuneration report on
page 38.
INTERNAL CONTROL SYSTEM (ICS)
The internal control function has been
embedded in the finance organisation.
This task is performed by Group Finance,
that together with the local entity’s finance
department and the Legal Compliance
officer is responsible for ensuring that the
necessary controls are performed along
with adequate monitoring.
Internal controls comprise the control of
the Company’s and Group’s organisation,
procedures and remedial measures. The
objective is to ensure reliable and correct
financial reporting, and to ensure that
the Company’s and Group’s financial
reports are prepared in accordance with
law and applicable accounting standards
and that other requirements are complied
with. The internal control system is also
intended to monitor compliance with
the Company’s and Group’s policies,
principles and instructions. In addition,
the control system monitors security for
the Company assets and monitors that
the Company’s resources are exploited
in a cost-effective and adequate manner.
Internal control also involves following
up on the implemented information and
business system, and risk analysis.
| CORPORATE GOVERNANCE REPORT
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Annual and Sustainability Report 2023 | Cavotec 51
===== SIDA 54 =====
52 Cavotec | Annual and Sustainability Report 2023
Patrik Tigerschiöld
Chairman of the Board
Niklas Edling
Member of the Board
Born 1964 Born 1963
Member since 2014, Chairman since 2018 Member since 2019
Citizenship: Swedish Citizenship: Swedish
Patrik Tigerschiöld holds an M.Sc. in
Business and Economics. Since 2013,
he has been Chairman of Bure Equity AB,
(a role he also held between 2004 and
2009), following his tenure as President
and CEO of the company. He is also
chairman of Bury Equity AB, Mycronic
AB, SNS Center for Business and Policy
Studies, and Yubico AB, as well as a
member of the Board of Ovzon AB. Patrik
is also a Fellow of the Royal Swedish
Academy of Engineering Sciences (IVA).
Niklas Edling holds an M.Sc. in
Mechanical Engineering from the
KTH Royal Institute of Technology in
Stockholm and a B.Sc. in Economics
and Business Administration from the
Stockholm School of Economics. In
addition to being on the Cavotec board,
Niklas is also CEO of ScandiNova
Systems AB, a global leader in pulsed
power solutions for applications
in medtech, industry and science.
Previously, Niklas was SVP Corporate
Development and Deputy CEO at
electronics production solutions provider
Mycronic, where he also served as SVP
Operations. He is also a board member
of HMS Networks AB.
Patrik Tigerschiöld, together with his family,
holds 1,598,000 shares in Cavotec.
Niklas Edling holds 83,599 shares in
Cavotec.
| BOARD OF DIRECTORS
Board of Directors
===== SIDA 55 =====
Annual and Sustainability Report 2023 | Cavotec 53
Annette Kumlien
Member of the Board
Peter Nilsson
Member of the Board
Keith Svendsen
Member of the Board
Born 1965 Born 1962 Born 1973
Member since 2019 Member since 2023 Member since 2021
Citizenship: Swedish Citizenship: Swedish Citizenship: Danish
Annette Kumlien holds a Bachelor
of Business Administration from the
Stockholm School of Economics.
Alongside her Cavotec role, she holds
the position as COO Intrum AB and is a
member of the Board of Dirac Research
AB. Previously Annette has worked as
GVP/CFO at Munters Group AB, CFO/
COO at Diaverum and CFO in Höganäs
AB and Pergo AB.
Peter Nilsson holds an M.Sc. in Business
and Economics from the Stockholm
School of Economics.
He is chairman of Lindab Group, Nilfisk
A/S and deputy chairman of Creaspac
AB. He was previously, among others,
chairman of Adapteo AB and Unilode AG,
deputy chairman of Cramo OYJ and CEO
of Sanitec AB and Duni AB.
Keith Svendsen graduated as a Master
Mariner from Fanoe Navigation College,
in Denmark, and has an Executive MBA
from the London Business School in
the UK. Alongside his Cavotec role,
he currently serves as CEO of APM
Terminals, one of the largest port terminal
operators in the world. He is also director
of a number of entities associated with
A.P. Moller-Maersk and a member of the
Executive Leadership Team at A.P. Moller-
Maersk. Additionally, he is the Director
of Through Transport Mutual Insurance
Association Limited, independent provider
of mutual insurance and related risk
management services to the international
transport and logistics industry.
Previously, Keith has also been COO of
APM Terminals and before that Head of
Operational Execution for the Maersk
Group’s Ocean Shipping business.
Annette Kumlien holds 75,000 shares in
Cavotec.
Peter Nilsson holds 212,180 shares in
Cavotec through his company Poleved
Industrial Performance AB.
Keith Svendsen does not hold any shares
in Cavotec.
BOARD OF DIRECTORS |
===== SIDA 56 =====
54 Cavotec | Annual and Sustainability Report 2023
| CAVOTEC MANAGEMENT TEAM
David Pagels
CEO
Joakim Wahlquist
Chief Financial Officer
Patrick Mares
President, Ports & Maritime
Born 1968 Born 1977 Born 1962
Citizenship: Swedish Citizenship: Swedish Citizenship: Belgian
David Pagels holds an Executive
MBA from Stockholm School of
Economics, a M.Sc in Mechanical
Engineering from University of
Luleå and a B.Sc in Mechanical
Engineering from University of
Växjö in Sweden. Prior to joining
Cavotec, he served as CEO of
Dellner Couplers, Head of Global
Sourcing at Xylem Europe GmbH,
and Director Strategic Sourcing at
Bombardier Transportation.
Joakim Wahlquist holds
a M.Sc. in Business
Administration from Linköping
University and an Executive
Education from Stockholm
School of Economics. Prior to
joining Cavotec, he has held
several senior management
positions such as Managing
Director Financial Services
Russia at Scania, CFO Russia
and Central Asia at Scania and
CFO Hong Kong at Scania.
Patrick Mares holds a master’s
degree in Engineering from the
University of Leuven, Belgium.
Prior to joining Cavotec, he
served as Vice-President
EMEA at Harsco Rail. Prior to
this, he was Vice-President of
Sales & Business Development
at GKN Land Systems,
President EMEIA at Ingersoll
Rand Security Technologies,
and held various leadership
positions at General Electric.
David Pagels holds 750,000
shares in Cavotec and
1,500,000 call options issued
by Bure Equity AB.
Joakim Wahlquist holds 75,000
shares in Cavotec and 150,000
call options issued by Bure
Equity AB.
Patrick Mares holds 18,950
shares in Cavotec.
Cavotec Management Team
===== SIDA 57 =====
Annual and Sustainability Report 2023 | Cavotec 55
CAVOTEC MANAGEMENT TEAM |
Simone Sguizzardi
President, Industry
Patrick Baudin
President, Services
Jörgen Ohlsson
Senior Vice President,
Global Operations
Vanessa Tisci
Chief Legal & Human
Resources Officer
Born 1974 Born 1971 Born 1970 Born 1982
Citizenships: Italian and German Citizenships: Canadian and French Citizenship: Swedish Citizenship: Italian
Simone Sguizzardi holds an
Executive MBA from the Hult
International Business School
in London (UK), and a degree
in Commerce and Economic
History from the University of
Bologna (Italy). Prior to joining
Cavotec, Simone was Director
of Western Europe at UTA
Edenred, and Export Director at
Mapco GmbH.
Patrick Baudin holds a MBA
in International Finance from
HEC School of Management in
Paris (France) and a Bachelor
in Engineering from McGill
University in Montreal (Canada).
Prior to joining Cavotec he served
as President of General Electric
Renewable Energy Canada. He
has also held several senior
positions in ALSTOM such as
vice president of the Generator
Product Line for ALSTOM Thermal
Service in Switzerland and
ALSTOM Power Service in France.
Jörgen Ohlsson holds
a Master’s Degree in
Mechanical Engineering from
Linné university (Sweden).
Prior to joining Cavotec,
he served as Production
Director for the Xylem site
in Emmaboda, Sweden.
He has also held senior
positions such as Strategic
Sourcing within Ericsson and
in production and sourcing
within Bombardier.
Vanessa attended the
universities of Bologna and
Milan in Italy and holds a
Master’s Degree in law from
Stanford Law School (UK).
Previously, Vanessa was the
Head of Legal at SCP Group,
and prior to that she worked
as Senior International
Counsel for Walgreens Boots
Alliance. Vanessa is a New
York-qualified attorney and
has worked for major US law
firms as a corporate lawyer.
Simone Sguizzardi does not
hold any shares in Cavotec.
Patrick Baudin holds 10,000
shares in Cavotec.
Jörgen Ohlsson holds 625
shares in Cavotec.
Vanessa Tisci does not hold
any shares in Cavotec.
===== SIDA 58 =====
56 Cavotec | Annual and Sustainability Report 2023
Please note that all reported amounts are in euro.
Patrik Tigerschiöld
Chairman
David Pagels
Chief Executive Officer
This report is dated 11 April 2024 and is signed on behalf
of the Board and of the Management of Cavotec SA by
Consolidated
Financial
Statements
===== SIDA 59 =====
Annual and Sustainability Report 2023 | Cavotec 57
Statement of Comprehensive Income
Cavotec SA & Subsidiaries
EUR 000s Notes 2023 2022
Revenue from sales of goods and services 5 180,734 147,849
Other income 6 2,076 1,776
Cost of materials (101,219) (80,911)
Employee benefit costs 7 (47,895) (47,807)
Operating expenses 8 (19,292) (19,276)
Gross Operating Result 14,404 1,631
Depreciation and amortisation 16,17 (2,782) (2,906)
Depreciation of right-of-use of leased asset 16 (3,311) (3,222)
Impairment losses 9,17 (1,084) (9)
Operating Result 7,227 (4,506)
Interest income 10 18 108
Interest expenses 10 (3,471) (1,354)
Currency exchange differences - net 10 (16) 5,471
Other financial item 5 –
Profit /(Loss) before income tax 3,763 (281)
Income taxes 11,19 (3,583) (2,890)
Profit /(Loss) for the period, continued operations 180 (3,170)
Profit /(Loss) for the period, discontinued operations 38 – (11,522)
Profit /(Loss) for the period 180 (14,692)
Other comprehensive income:
Remeasurements of post employment benefit obligations continued operations 27 (99) 507
Remeasurements of post employment benefit obligations discontinued operations 27 – 193
Items that will not be reclassified to profit or loss (99) 700
Currency translation differences continued operations (1,836) (8,364)
Currency translation differences discontinued operations – (155)
Items that may be subsequently reclassified to profit/(loss) (1,836) (8,519)
Other comprehensive income/(loss) for the year, net of tax (1,935) (7,819)
Total comprehensive income/(loss) for the year (1,755) (22,540)
Total comprehensive income/(loss) attributable to:
Equity holders of the Group (1,755) (22,511)
Non-controlling interest – (29)
Total (1,755) (22,540)
Profit/(Loss) attributed to:
Equity holders of the Group continued operations 180 (3,170)
Equity holders of the Group discontinued operations – (11,522)
Total 180 (14,692)
Basic and diluted earnings per share from continued operations attributed
to the equity holders of the Group (EUR/Share) 30 0.002 (0.034)
Basic and diluted earnings per share from discontinued operations attributed
to the equity holders of the Group (EUR/Share) 30 – (0.122)
Basic and diluted earnings per share attributed to the equity holders of the Group
(EUR/Share) 30 0.002 (0.156)
Weighted Average number of shares 104,103,112 94,243,200
The notes on pages 61–86 are an integral part of these Consolidated Financial Statements.
CONSOLIDATED FINANCIAL STATEMENTS |
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58 Cavotec | Annual and Sustainability Report 2023
The notes on pages 61–86 are an integral part of these Consolidated Financial Statements.
Balance Sheet
Cavotec SA & Subsidiaries
Assets EUR 000s Notes 31 December 2023 31 December 2022
Current assets
Cash and cash equivalents 15,056 9,625
Trade receivables 12 27,942 33,315
Contract assets 5,12 2,862 1,171
Tax assets 13 4,718 6,399
Other current receivables 14 4,949 6,256
Inventories 15 37,429 43,002
Assets held for sale 9,38 1,814 2,320
Total current assets 94,770 102,088
Non-current assets
Property, plant and equipment 16 5,414 5,941
Right-of-use of leased assets 16 11,529 13,213
Intangible assets 17 37,315 38,920
Non-current financial assets 18 68 106
Deferred tax assets 19 6,897 6,201
Other non-current receivables 20 1,231 1,215
Total non-current assets 62,454 65,597
Total assets 157,224 167,685
Equity and Liabilities EUR 000s
Current liabilities
Current financial liabilities 21 – (4,914)
Current lease liabilities 16 (2,527) (2,687)
Trade payables 22 (26,004) (36,126)
Contract liabilities 5,22 (19,268) (28,125)
Tax liabilities 23 (5,111) (3,101)
Provision for risk and charges, current 26 (2,171) (2,032)
Other current liabilities 24 (11,320) (11,906)
Total current liabilities (66,401) (88,891)
Non-current liabilities
Non-current financial liabilities 21 (21,468) (21,172)
Non-current lease liabilities 16 (9,167) (10,353)
Deferred tax liabilities 25 (1,251) (1,100)
Other non-current liabilities (12) (461)
Provision for risk and charges, non-current 26 (1,794) (1,357)
Employee benefit obligation 27 (569) (501)
Total non-current liabilities (34,261) (34,944)
Total liabilities (100,662) (123,835)
Equity
Share Capital (54,130) (45,288)
Reserves 29 (55,323) (51,633)
Retained earnings 52,891 53,071
Equity attributable to owners of the parent 28 (56,562) (43,850)
Non-controlling interests – –
Total equity (56,562) (43,850)
Total equity and liabilities (157,224) (167,685)
| CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 61 =====
Annual and Sustainability Report 2023 | Cavotec 59
The notes on pages 61–86 are an integral part of these Consolidated Financial Statements.
Statement of Changes in Equity
Cavotec SA & Subsidiaries
EUR 000s Notes
Share
Capital Reserves
Retained
earnings
Equity related
to owners
of the parent
Non-controlling
interest
Total
Equity
Balance as at 1 January 2022 (100,169) (4,833) 38,379 (66,623) (29) (66,652)
(Profit) / Loss for the period – – 14,692 14,692 29 14,721
Currency translation differences – 8,519 – 8,519 – 8,519
Remeasurements of post employment
benefit obligations 27 – (700) – (700) – (700)
Total comprehensive income
and expenses – 7,819 14,692 22,511 29 22,540
Employees share scheme – 262 – 262 – 262
Share Premium Reserve 29 54,881 (54,881) – – – –
Transactions with shareholders 54,881 (54,619) – 262 – 262
Balance as at 31 December 2022 (45,288) (51,633) 53,071 (43,850) – (43,850)
Balance as at 1 January 2023 (45,288) (51,633) 53,071 (43,850) – (43,850)
(Profit) / Loss for the period – – (180) (180) – (180)
Currency translation differences – 1,836 – 1,836 – 1,836
Remeasurements of post employment
benefit obligations 27 – 99 – 99 – 99
Total comprehensive income
and expenses – 1,935 (180) 1,755 – 1,755
Employees share scheme – 58 – 58 – 58
Capital increase (8,843) – – (8,843) – (8,843)
Share Premium Reserve 29 – (5,683) – (5,683) – (5,683)
Transactions with shareholders (8,843) (5,625) – (14,467) – (14,467)
Balance as at 31 December 2023 (54,130) (55,323) 52,891 (56,562) – (56,562)
The line related to Employees share scheme shows the accrual for LTIP plans.
CONSOLIDATED FINANCIAL STATEMENTS |
===== SIDA 62 =====
60 Cavotec | Annual and Sustainability Report 2023
Statement of Cash Flows
Cavotec SA & Subsidiaries
EUR 000s Notes 2023 2022
Profit /(Loss) for the year 180 (14,692)
Loss from discontinued operations, net of income taxes – (11,522)
Adjustments for:
Net interest expenses 3,453 1,246
Current taxes 11 4,221 2,709
Depreciation and amortisation 16,17 2,782 2,906
Depreciation of right -of-use of leased assets 16 3,311 3,222
Impairment losses 9,17 1,084 9
Deferred tax (638) 181
Provision for risks and charges 69 (827)
Capital gain or loss on assets (20) –
Other items not involving cash flows (454) (4,907)
Interest paid (3,057) (945)
Taxes paid (529) (6,225)
10,222 (2,631)
Cash flow before change in working capital 10,402 (5,802)
Impact of changes in working capital
Inventories 5,451 (12,960)
Trade receivables and contract assets 4,381 (8,784)
Other current receivables 1,306 (2,613)
Trade payables and contract liabilities (18,979) 23,161
Other current liabilities (628) 1,513
Impact of changes involving working capital (8,469) 317
Net cash inflow /(outflow) from operating activities continued operations 1,933 (5,485)
Net cash inflow /(outflow) from operating activities discontinued operations – (15,508)
Net cash inflow /(outflow) from operating activities 1,933 (20,993)
Financing activities
Increase in equity capital 14,526 –
Net changes loans and borrowings 21 (4,696) 12,257
Repayment of lease liabilities 16 (3,156) (3,073)
Net cash inflow /(outflow) from financing activities continued operations 6,674 9,184
Net cash inflow /(outflow) from financing activities discontinued operations – (907)
Net cash inflow /(outflow) from financing activities 6,674 8,277
Investing activities
Investments in property, plant and equipment (911) (1,183)
Investments in intangible assets 17 (624) (1,399)
Decrease of non current financial asset 38 (50)
Disposal of assets 16 29 1,142
Net cash inflow/(outflow) from investing activities continued operations (1,468) (1,490)
Net cash inflow /(outflow) from investing activities discontinued operations – 9,679
Net cash inflow /(outflow) from investing activities (1,468) 8,189
Cash at the beginning of the year 9,625 12,230
Cash flow for the year continued operations 7,137 2,209
Cash flow for the year discontinued operations – (6,736)
Cash flow for the year 7,137 (4,527)
Currency exchange differences (1,706) 1,922
Cash at the end of the year 15,056 9,625
The notes on pages 61–86 are an integral part of these Consolidated Financial Statements.
| CONSOLIDATED FINANCIAL STATEMENTS
===== SIDA 63 =====
Annual and Sustainability Report 2023 | Cavotec 61
NOTE 1. GENERAL INFORMATION
Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonization of ports and
industrial applications worldwide. Backed by more than 40 years of experience, our systems ensure safe, efficient, and sustainable operations for a wide
variety of customers and applications worldwide.
We thrive by shaping future expectations in the areas we are active in. Our credibility comes from our application expertise, dedication to innovation and
world class operations. Our success rests on the core values we live by: Integrity, Accountability, Performance and Teamwork.
Cavotec’s personnel, located in some 20 countries around the world, represent many cultures and provide customers with local support, backed by the
Group’s global network of engineering expertise.
Cavotec SA is the ultimate Parent company of the Cavotec Group, its registered office is Corso Elvezia 16, CH-6900 Lugano, Switzerland. Cavotec SA
shares are listed on Nasdaq Stockholm, Sweden.
These Financial Statements were approved by the Board of Directors on 11 April 2024. The report is subject to approval by the Annual General Meeting
on 4 June 2024.
NOTE 2. BASIS OF PREPARATION
The consolidated Financial Statements of the Cavotec Group are prepared in accordance with IFRS accounting standards as issued by the IASB.
Historical Cost Convention
These Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial
liabilities at fair value through P&L.
Adoption of new and revised standards and application of new accounting policies
The following standards are effective from 1 January 2023. The adoption of the amendments has had no impact on the
Group’s consolidated financial position or performance of the Group as per management analysis performed:
• Amendments to IAS 8 – Definition of Accounting Estimates
• Amendments to IAS 1 – Disclosure of Accounting Policies
• Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31
December 2023 reporting periods and have not been early adopted by the group. These standards, amendments or interpretations are not expected to
have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
Critical accounting estimates
The preparation of the Financial Statements in conformity with IFRS accounting standards requires the use of certain critical accounting estimates. It
also requires the management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and estimates are significant to the Financial Statements, are disclosed in note 4.
NOTE 3. SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the Financial Statements are set out below. These policies have been consistently
applied to all the periods presented, namely, 31 December 2023 and 2022.
FOREIGN CURRENCY TRANSLATION
(i) Functional and presentation currency
Items included in the Financial Statements are measured using the currency of the primary economic environment in which the related entity operates (‘the
functional currency’). The Financial Statements are presented in Euros, which is the Group’s presentation currency and Company’s functional currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised in the Statement of Profit or Loss, except when recognised in other comprehensive
income as qualifying cash flow hedges and qualifying net investment hedges.
(iii) Foreign operations
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different
from the presentation currency are translated into the presentation currency as follows:
Assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet.
Income and expenses for each Income Statement position are translated at average exchange rates of that period, unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of
the transactions.
Resulting exchange differences related to currency translation adjustment are recognised in other comprehensive income and accumulated as a
separate component of equity.
The Consolidated Statements of Cash Flow are translated at average exchange rates during the period, whereas cash and cash equivalents are
translated at the spot exchange rate at the end of the reporting period.
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 64 =====
62 Cavotec | Annual and Sustainability Report 2023
Exchange differences arising from the translation of any net investment in foreign operations and borrowings designated as quasi-equity loans are
recognised in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a
proportionate share of such exchange differences are recognised in the Statement of Comprehensive Income, as part of the gain or loss on sale where
applicable.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and
translated at the closing rate.
CONSOLIDATION
(i) Subsidiaries
Subsidiaries are all entities over which the group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and could affect those returns through its power over the entity. Subsidiaries are consolidated from the date
on which control is transferred to the Group. They are de-consolidated from the date that control ceases.
The Group uses the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the
fair value of the assets transferred, the liabilities incurred, and the equity interests issued by the Group. The consideration transferred includes the fair
value of any asset or liability resulting from a contingent consideration arrangement. Contingent consideration is valued based on the probability that
the consideration will be paid and changes in the fair value are recognised in profit or loss. Acquisition-related costs are expensed. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.
The excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less
than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the Statement of Comprehensive Income.
Inter-company transactions, balances, and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also
eliminated but are considered an impairment indicator of the asset transferred.
(ii) Transactions with non-controlling interest
The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A
change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their
relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or
received is recognised in a separate reserve within equity attributable to owners.
(iii) Scope of Consolidation
The consolidated Financial Statements include the statements as of 31 December 2023 of the companies included in the scope of consolidation, which
have been prepared in accordance with IFRS accounting standards adopted by the Group. Below is a list of companies consolidated on a line-by-line
basis and the respective shares held either directly or indirectly by Cavotec SA:
Name Registered office Type of Business Controlled through % Group ownership
Direct Indirect
Cavotec (Swiss) SA Switzerland Services Cavotec SA 100%
Cavotec Australia Pty Ltd Australia Sales company Cavotec Group Holdings NV 100%
Cavotec Cleantech Malaysia SDN. BHD. Malaysia Sales company Cavotec (Swiss) SA 100%
Cavotec Germany GmbH Germany Centre of Excellence Cavotec Group Holdings NV 100%
Cavotec Finland OY Finland Sales company Cavotec Group Holdings NV 100%
Cavotec France RMS SA France Sales company Cavotec Group Holdings NV 100%
Cavotec Group Holdings NV The Netherlands Holding Cavotec MoorMaster Ltd 100%
Cavotec Hong Kong Ltd China Sales company Cavotec Group Holdings NV 100%
Cavotec India Ltd India Sales company Cavotec Group Holdings NV 100%
Cavotec International Ltd United Kingdom Services/Sales company Cavotec Group Holdings NV 100%
Cavotec Micro-control AS Norway Centre of Excellence Cavotec Group Holdings NV 100%
Cavotec FZE U.A.E. Sales company Cavotec Group Holdings NV 100%
Cavotec MoorMaster Ltd New Zealand Engineering Cavotec SA 100%
Cavotec Nederland BV The Netherlands Sales company Cavotec Group Holdings NV 100%
Cavotec Realty Germany BV The Netherlands Services Ipalco BV 100%
Cavotec Realty Norway AS Norway Services Ipalco BV 100%
Cavotec Russia OOO (in liquidation) Russia Sales company Cavotec Group Holdings NV 100%
Cavotec SA Switzerland Holding - –
Cavotec Shanghai Ltd China Centre of Excellence Cavotec Group Holdings NV 100%
Cavotec Singapore Pte Ltd Singapore Sales company Cavotec Group Holdings NV 100%
Cavotec Specimas SpA Italy Centre of Excellence Cavotec Group Holdings NV 100%
Cavotec Sverige AB Sweden Sales company Cavotec Group Holdings NV 100%
Cavotec USA Inc. United States of America Sales company Cavotec SA 100%
Ipalco BV The Netherlands Holding/Services Cavotec Group Holdings NV 100%
During FY2023 the following changes to the Group Structure applied:
• Cavotec South Africa Pte Ltd and Cavotec Realty France SCI have been liquidated
• Cavotec International Ltd extended its operation to include sales
SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating
decision-maker (CODM), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the
Board of Directors.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 65 =====