FULLTEXT DEL 2 AV 2
Årsredovisning 2023
Annual and Sustainability Report 2023 | Cavotec 63
NON-CURRENT ASSETS HELD FOR SALE
Non-current assets are classified as held for sale if their carrying amounts will be recovered principally through a sales transaction rather than through
continuing use. For this to be the case, the asset must be available for immediate sale in its present condition subject only to terms that are usual and
customary for the sale of such assets and its sale must be highly probable. Non-current assets classified as held for sale are measured at the lower
of their carrying amounts and fair values less costs to sell. Property, plant and equipment and intangible assets classified as held for sale are not
depreciated or amortised.
PROPERTY, PLANT AND EQUIPMENT
All property, plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance
are charged to the Statement of Comprehensive Income during the financial period in which they are incurred. The classes of property plant and
equipment are land and buildings, plant and equipment and fixtures and fittings.
Land is not depreciated. Depreciation of property, plant and equipment is calculated using a straight-line method so as to expense the cost of the
assets over their useful lives. The rates are as follows:
Years
Industrial buildings 25
Building improvements 5
Plant and machinery 5 to 10
Laboratory equipment and miscellaneous tools 5
Furniture and office machines 5
Motor vehicles 5
Computer hardware 3
Capital work in progress is not depreciated until commissioned. An asset’s carrying amount is written down immediately to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with
carrying amount. These are included in the Statement of Profit or Loss.
Leasehold improvements are depreciated over the lease term, or their estimated useful life, if shorter.
LEASES
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following
lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date
• amounts expected to be payable by the group under residual value guarantees
• the exercise price of a purchase option if the group is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case
for leases in the group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security, and conditions.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the group is
reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small items
of office furniture.
INTANGIBLE ASSETS
(i) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired business/associate at the
date of acquisition. Goodwill on acquisitions of businesses is included in intangible assets.
Goodwill is not amortised. Instead, goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances
indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair
value less costs of disposal. Any impairment is recognised immediately as an expense and is not subsequently reversed. Gains and losses on the
disposal of an entity include the carrying amount of goodwill relating to the entity sold.
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 66 =====
64 Cavotec | Annual and Sustainability Report 2023
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs, or groups of CGUs, that is
expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level
within the entity at which the goodwill is monitored for internal management purposes.
(ii) Research and development
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the design and testing of new or
improved products) are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technical
feasibility and its costs can be measured reliably. It must also be probable that the intangible asset will generate future economic benefits and that it is
clearly identifiable and allocable to a specific product.
The expenditure capitalised comprises all directly attributable costs, including costs of materials, services, direct labour, and an appropriate proportion
of overheads. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously
recognised as an expense are not recognised as an asset in a subsequent period. Capitalised development costs are recorded as intangible assets at
cost and amortised from the point at which the asset is ready for use on a straight-line basis over its useful life, which varies from three to five years.
(iii) Patents
Patents acquired in a business combination are recognised at fair value at acquisition date. Patents are amortised on a straight-line basis over the
period over which they are valid (not exceeding 20 years) or their estimated useful life if shorter.
INVENTORIES
Inventories are measured at the lower of acquisition cost, at weighted average cost, or manufacturing cost and net realisable value. Manufacturing costs
comprise all costs that are directly attributable to the manufacturing process, such as direct material and labour, direct engineering, production and
tooling and other non-recurring costs and production related overheads, (based on normal operating capacity and normal consumption of material,
labour, and other production costs), including depreciation charges. Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated variable costs necessary to make the sale.
Provisions are made for inventories with a lower market value, or which are slow-moving. If it becomes apparent that such inventory can be reused,
provisions are reversed with inventory being revalued up to the lower of its net realisable value or original cost. Unsaleable inventory is fully written off.
IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible
assets that have an indefinite useful life including goodwill, are not subject to amortisation and are tested annually for impairment irrespective of whether
any circumstances identifying a possible impairment have been identified. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).
FINANCIAL INSTRUMENTS
Classification and measurement of financial assets and financial liabilities
IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, FVOCI and FVTPL. The classification of financial
assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI),
and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business
model for managing them. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical
expedient are measured at the transaction price determined under IFRS 15.
For a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely
payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets to generate cash flows. The business model
determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace
(regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. The Group classifies its financial assets as at amortised cost only if both of the following criteria are met:
• the asset is held within a business model whose objective is to collect the contractual cash flows, and
• the contractual terms give rise to cash flows that are solely payments of principal and interest
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and
losses are recognised in profit or loss when the asset is derecognised, modified, or impaired.
The Group’s financial assets at amortised cost includes trade receivables, contract assets under IFRS 15, other receivables and cash and cash
equivalents.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 67 =====
Annual and Sustainability Report 2023 | Cavotec 65
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed
from the Group’s consolidated statement of financial position) when:
• The rights to receive cash flows from the asset have expired Or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset
Impairment of financial assets
Further disclosures relating to impairment of financial assets are also provided in the Risk Management on page 82.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs
are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures
for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the
remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in
credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is
based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
The group considers the credit risk of financial assets to be significantly increased (stage 3) when contractual payments are 90 days overdue. The
group assesses those assets on an individual basis. A financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss as loans and borrowings and payables. All
financial liabilities are recognised initially at fair value and, net of directly attributable transaction costs. The Group’s financial liabilities include trade and
other payables, loans and borrowings including bank overdrafts.
The Group has not designated any financial liability as at fair value through profit or loss.
Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process. Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
Following a modification or renegotiation that does not result in de-recognition, the Group recognise any modification gain or loss immediately in profit
or loss. Any gain or loss is determined by recalculating the gross carrying amount of the financial asset by discounting the new contractual cash flows
using the original effective interest rate.
This category generally applies to interest-bearing loans and borrowings.
For more information, refer to Note 21.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability
is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions and other short term, highly liquid investments with
original maturities of three months or less (from the acquisition date of the investments) that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
BORROWINGS
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of liabilities for at least 12 months after the
Balance Sheet date. Fees paid on the establishment of an undrawn loan facility, are recognised as prepayments and amortised on a straight-line basis
over the term of the facility.
BORROWING COSTS
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period that is required to complete and prepare the asset
for its intended use or sale. Other borrowing costs are expensed.
PROVISIONS
Provisions are recognised when the Group has a legal or constructive obligation because of past events, it is more likely than not that an outflow of
resources will be required to settle the obligation and the amount has been reliably estimated. The amount recognised is the best estimate of the cost
required to settle the present obligation at the Balance Sheet date. If the effect of the time value of money is material, the provision is determined by
discounting the expected future cash flows at a rate that reflects the current market assessments of the time value of money and the risks specific to the
liability.
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 68 =====
66 Cavotec | Annual and Sustainability Report 2023
Provisions for warranties are recognised at the time the products are sold based on the estimated cost using historical data for level of repairs and
replacements.
Provisions for onerous contracts are recognised when the expected economic benefits to be derived from a contract are lower than the cost of meeting
the obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract.
REVENUE RECOGNITION
Cavotec is an engineering group that designs and manufactures automated connection and electrification systems for ports and industrial applications
worldwide.
Revenue is measured based on the consideration expected to be entitled to base on the contract with a customer. The Group recognises revenue when
it transfers control over a good or service to a customer. Revenue is recognised to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognised will not occur.
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods supplied, stated net
of value added taxes, goods and service tax (GST), rebates and discounts. The Group offers multiple element arrangements to meet its customers’
needs. These arrangements may involve the delivery of multiple products and/or performance of services (such as installation, commissioning, and
training) and the delivery and/or performance may occur at different points in time or over different periods. The Group considers whether there are
other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. Deliverables
of such multiple element arrangements are evaluated to estimate the selling price that reflects at inception the Group’s best estimate of what the selling
price would be if the elements were sold on a stand-alone basis. Such arrangements generally include industry-specific performance and termination
provisions, such as in the event of substantial delays or non-delivery.
The company has defined the following revenue streams to meet the revenue recognition requirements as listed in IFRS 15:
(i) Integrated Systems
Long Term Contracts with high level of customisation based on the request of the customer for a complete set of Port solutions. When no alternative
use and right to payment are confirmed, revenue is recognised over time. Revenue from Integrated Systems is therefore recognised over time on a
cost-to-cost method, i.e. based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs.
The directors consider that this input method is an appropriate measure of the progress towards complete satisfaction of these performance obligations
under IFRS 15.
(ii) Individual Products
The customer receives detailed listing of products description with related prices; they are not customized, and they do not include engineering or
installation, or if any it represents a minimal portion of the total order. Revenues is recognised at a point in time based on incoterms.
(iii) Maintenance and installation
Service contract for periodic maintenance or field services and installation. The Group provides installation services that are either sold separately
or bundled together with the sale of equipment to a customer. The installation services can be obtained from other providers and do not significantly
customise or modify the equipment. Contracts for bundled sales of equipment and installation services are comprised of two performance obligations
because the promises to transfer equipment and provide installation services are capable of being distinct and separately identifiable. Accordingly, the
Group allocates the transaction price based on the relative stand-alone selling prices of the equipment and installation services.
The Group recognises revenue from services over time, using an input method to measure progress towards complete satisfaction of the service,
because the customer simultaneously receives and consumes the benefits provided by the Group.
Contract balances
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods
or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration
that is conditional.
Trade receivables
A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment
of the consideration is due).
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of
consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract
liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the
Group performs under the contract.
Cost to obtain a contract
The Group pays sales commission to its employees for some contract that they obtain for bundled sales of equipment and installation services.
The Group has elected to apply the optional practical expedient for costs to obtain a contract which allows the Group to immediately expense sales
commissions (included under employee benefits and part of cost of sales) because the amortisation period of the asset that the Group otherwise would
have used is one year or less.
VALUE ADDED TAX (VAT) AND GOODS AND SERVICES TAX (GST)
The statement of comprehensive income has been prepared so that all components are stated exclusive of VAT or GST. All items in the Balance Sheet
are also stated net of VAT or GST, except for receivables and payables, which include VAT or GST invoiced.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 69 =====
Annual and Sustainability Report 2023 | Cavotec 67
EMPLOYEE BENEFITS
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months
of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts
expected to be paid when the liabilities are settled.
(i) Pension obligations
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity and the Group has no legal or
constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee
service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan.
Cavotec (Swiss) SA operate a pension scheme via the employee benefits foundation and are affiliated with the Swiss Life Collective BVG Foundation
based in Zurich. All benefits in accordance with the regulations are reinsured in their entirety with Swiss Life Ltd within the framework of the
corresponding contract and determined by actuarial calculations. These schemes are defined benefit plans due to the fact that Cavotec can be
requested to pay restructuring contributions in the case of a shortfall.
Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more
factors such as age, years of service and compensation.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other
comprehensive income in the period in which they arise.
The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end
of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated by independent actuaries using the projected unit
credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates
of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to
the terms of the related pension obligation.
(ii) Share-based payments
The total expense is recognised over the vesting period, which is the period over which all the specified vesting conditions are to be satisfied. At the
end of each period, the entity revises its estimates of the number of shares that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
DIVIDENDS AND OTHER DISTRIBUTIONS
Distributions to the shareholders are recognised as a liability in the Group’s Financial Statements in the period in which they are approved by the Annual
General Meeting.
TREASURY SHARES
Treasury shares are deducted from consolidated equity at the acquisition value. Differences between this amount and the amount received for disposing
of treasury shares are recorded in consolidated retained earnings.
INCOME TAX
The income tax expense for the period is the tax payable on the current years taxable income based on the national income tax rate for each
jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities
and their carrying amounts in the Financial Statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or
liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to
the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain
temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these
temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting
profit or taxable profit and loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and tax bases of investments in subsidiaries where the Group is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Uncertain tax positions are measured either at the most likely outcome or at the expected value, depending on which method better predicts the
resolution of the uncertainty. Thereby detection risk is not considered.
Current and deferred tax balances attributable to amounts recognised directly in equity or in OCI are also recognised directly in equity or in OCI
respectively.
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 70 =====
68 Cavotec | Annual and Sustainability Report 2023
NOTE 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will seldom equal the related actual results.
Critical accounting policies estimates and assumptions in the period relate to the valuation of deferred tax assets, the estimation of the outcome of legal
proceeding, assets held for sale, and the assumptions used in the goodwill impairment test. As of the Balance Sheet dates the Group has no other
significant estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within
the foreseeable future.
DEFERRED TAXES
Deferred tax assets are recognised for temporary differences between the carrying amounts for financial reporting purposes of assets and liabilities and
the amounts used for taxation purposes and for tax loss carry-forwards. The Group records deferred tax assets based upon management’s estimates
of future taxable profit in different tax jurisdictions. The estimations of the recoverability of deferred tax assets on losses carried forward are based on
business plans and include the taxable profits that are more probable than not until the expire of tax losses, this results in lower estimates for years
in the distant future. The actual results may differ from these estimates, due to changes in the business climate and changes in tax legislation or by
variances from the business plans used on the models. See notes 19 and 25 for additional information.
LEGAL PROCEEDINGS
The Group recognises a liability when it has an obligation from a past event involving the transfer of economic benefits and when a reasonable estimate
can be made of what the transfer might be. The Group reviews outstanding legal cases regularly to assess the need for provisions in the Financial
Statements. These reviews consider the factors of the specific case through the use of outside legal counsel and advisors when necessary. To the
extent that management’s assessment of the factors considered are not reflected in subsequent developments, the Financial Statements could be
affected.
ASSETS HELD FOR SALE
Cavotec reclassified the assets and liabilities pertaining to activities held for sale in accordance with IFRS 5. In distinguishing between the assets
and liabilities pertaining to continuing operations and those pertaining to discontinued operations all assets and liabilities exclusively pertaining to
one Business Unit were allocated to that Business Unit. In all other cases a critical assessment was conducted as to whether it could be reasonably
expected that the asset or liability concerned would be transferred in a disposal.
The allocation made may have to be adjusted when the disposals are realised.
In the Consolidated Statements of Income and of Cash Flows, discontinued operations are reported separately from continuing operations; prior
periods are presented on a comparable basis. The disclosures in the notes to the consolidated financial statements outside Note 38 relate to continuing
operations or assets and liabilities not held for disposal. Judgements made in relation to the classification of the Airport division as held for sale, include
the identification of the disposal group, the presentation of its results as discontinued operations, the estimation of fair value less cost of disposal and
the allocation of the impairment loss to the specific assets.
GOODWILL IMPAIRMENT TEST
The Group allocates the goodwill to the cash-generating units (CGU’s) identified and reported according to the table below.
EUR 000s
Net book value
as of 01/01/2023
Translation
differences and other
Acquisitions
and dispositions Impairment
Net book value
as of 31/12/2023
Ports & Maritime 23,282 -70 – – 23,212
Industry 6,918 1 – – 6,919
Total 30,200 -69 – – 30,131
The recoverable amount of the CGUs is determined by reference to the value in use of each CGU, based on discounted estimates of the future cash
flows, which were projected for the next five years based on past experiences, actual orders received, budgets, strategic plan, and management’s
best estimate about future developments and market assumptions. The impairment model has been prepared based on the Strategic Plan to focus
on cleantech solutions. The value in use is mainly driven by the terminal value, which is influenced by the terminal growth rate and discount rate. The
growth rates are related to industry specific trends with the support of external macroeconomic sources of data and an assessment as to the ability
of the Company to take advantage of these market developments considering orders received, commercial negotiations currently in place and future
expectations.
The following table presents the assumptions used to determine the value in use for impairment test purposes:
Terminal growth rate WACC
2023 2022 2023 2022
Ports & Maritime 2.00% 2.00% 12.31% 11.80%
Industry 1.50% 1.50% 11.70% 11.19%
The pre-tax weighted average cost of capital used for impairment test purposes are slightly different in the CGUs because of the different risks in those
markets.
Ports & Maritime goodwill
As at the date of the impairment test, no impairment of goodwill resulted. The recoverable amount exceeded the net carrying amount by EUR 38.6
million. In the prior year, the difference amounted to EUR 61.8 million. The following changes in material assumptions would lead to a situation where
the value in use would equate to the net carrying amount.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 71 =====
Annual and Sustainability Report 2023 | Cavotec 69
2023 2022
Assumptions Sensitivity Assumptions Sensitivity
Average annual revenue growth until 2028 (2027) with
Gross margin unchanged compared to business plan 6.5% -3.7% 8.2% -1.2%
Normalized Gross Margin 32.2% 30.1% 32.3% 27.6%
WACC pre-tax 12.3% 17.1% 11.8% 21.8%
Industry goodwill
The impairment tests for goodwill did not lead to any need for impairment in the current financial year. The recoverable amount exceeded the net
carrying amount by EUR 32.0 million. In the prior year, the difference amounted to EUR 59.0 million. The following changes in material assumptions
would lead to a situation where the value in use would equate to the net carrying amount.
2023 2022
Assumptions Sensitivity Assumptions Sensitivity
Average annual revenue growth until 2028 with Gross
margin unchanged compared to business plan 8.7% 5.6% 10.4% -2.1%
Normalized Gross Margin 30.6% 27.4% 33.7% 27.6%
WACC pre-tax 11.7% 20.8% 11.2% 30.5%
NOTE 5. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue from contracts with customers
The group derives revenue from the transfer of goods and services over time and at a point in time in the following Divisions and geographical regions.
Year ended 31 December 2023
EUR 000s Ports & Maritime Industry Total
Revenue from external customer
Timing of revenue recognition
At a point in time 110,712 66,045 176,757
Over time 3,976 - 3,976
Total 114,688 66,045 180,734
Year ended 31 December 2022
EUR 000s Ports & Maritime Industry Total
Revenue from external customer
Timing of revenue recognition
At a point in time 85,855 59,590 145,445
Over time 2,404 – 2,404
Total 88,259 59,590 147,849
Year ended 31 December 2023
EUR 000s AMER EMEA APAC Total
Ports & Maritime 18,239 45,726 50,723 114,688
Industry 4,751 42,228 19,067 66,045
Total 22,990 87,954 69,790 180,734
Year ended 31 December 2022
EUR 000s AMER EMEA APAC Total
Ports & Maritime 8,621 40,616 39,022 88,259
Industry 4,040 41,602 13,948 59,590
Total 12,661 82,218 52,970 147,849
Assets and liabilities related to contract with customers
The group has recognised the following assets and liabilities related to contracts with customers:
EUR 000s 31 Dec, 2023 31 Dec, 2022
Current Assets/Liabilities
Contract Assets 2,862 1,171
Contract Liabilities (19,268) (28,125)
Total (16,406) (26,954)
The movement in contract liabilities year over year of EUR 8.9 million is entirely due to received advances from customers. These advance payments
are recognized as liabilities until the related revenue is recognized.
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 72 =====
70 Cavotec | Annual and Sustainability Report 2023
NOTE 6. OTHER INCOME
EUR 000s 2023 2022
Carriage, insurance and freight 1,042 1,085
Exchange gains and losses (812) (388)
Other miscellaneous income 1,845 1,079
Total continued operations 2,076 1,776
Total discontinued operations – 783
Total 2,076 2,559
Other miscellaneous income includes EUR 0.5 million of releases of bad debt provision from previous years.
NOTE 7. EMPLOYEE BENEFIT COSTS
EUR 000s 2023 2022
Salaries and wages (36,584) (37,737)
Social security contributions (6,547) (5,830)
Other employee benefits (4,764) (4,240)
Total continued operations (47,895) (47,807)
Total discontinued operations – (11,331)
Total (47,895) (59,138)
The number of full-time equivalent employees was 664 1 (2022: 640). The Group has two Long-Term Incentive Plans (“LTIP”) for selected employees
of the Group running in parallel. More information on the plans can be found in the Remuneration report (page 38).
(1) Number of full-time equivalent employees including externals.
NOTE 8. OPERATING EXPENSES
EUR 000s 2023 2022
Transportation expenses (933) (996)
External services (6,986) (6,771)
Travelling expenses (2,724) (2,394)
General expenses (5,969) (5,525)
Utility expenses (1,027) (1,233)
Credit losses (191) (1,052)
Warranty costs (1,462) (1,305)
Total continued operations (19,292) (19,276)
Total discontinued operations – (5,816)
Total (19,292) (25,093)
NOTE 9. ASSETS HELD FOR SALE
Assets held for sale as at 31 December 2023 that are carried over from 2020 are the Trondheim building (Norway) for a total amount of EUR 1.8
million. In December 2023 Cavotec has signed an agreement for the sale of the building with effective date 29 February 2024. As the building was
accounted as Assets held for sale with a book value of EUR 2.2 million in 2023, the Company recognized a write down of EUR 0.4 million already in
2023.
NOTE 10. NET FINANCIAL COSTS
EUR 000s 2023 2022
Interest income 18 108
Interest expense (3,117) (1,026)
Amortisation of issuance costs (354) (328)
Interest expenses – net continued operations (3,453) (1,246)
Interest expenses – net discontinued operations – (579)
Interest expenses – net (3,453) (1,825)
Currency exchange difference – net continued operations (16) 5,471
Currency exchange difference – net discontinued operations – 1,851
Currency exchange difference – net (16) 7,322
Total continued operations (3,470) 4,225
Total discontinued operations – 1,272
Total (3,470) 5,497
Interest expense includes EUR 2.3 million mainly arising from the credit facility agreement between Cavotec Group Holdings and Credit Suisse. The
reduction in currency exchange differences primarily derives from the closure of the SEB bank cash-pooling system.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 73 =====
Annual and Sustainability Report 2023 | Cavotec 71
NOTE 11. INCOME TAXES
EUR 000s 2023 2022
Current tax (4,109) (2,564)
Deferred tax 638 (181)
Other taxes (112) (145)
Total continued operations (3,583) (2,890)
Total discontinued operations - (1,531)
Total (3,583) (4,421)
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to the profits
of the consolidated entities as follows:
EUR 000s 2023 2022
Tax on consolidated pre-tax income at group rate 20.4% 766 21.7% 2,232
Tax effect of loss-making subsidiaries for which no DTA is recognized (3,480) (7,213)
Tax effect of non-taxable income included in profit before tax 1,278 1,157
Tax on non-deductible expenses (2,147) (410)
Write down of previously recognised DTAs – (198)
Utilisation of previously unrecognised DTA – 11
Total (3,583) (4,421)
The Group operates in many jurisdictions where statutory tax rates vary from 0% to 35.0%. The weighted average applicable tax rate was 20.4%
(21.7%).
NOTE 12. TRADE RECEIVABLES AND CONTRACT ASSETS
EUR 000s 31 Dec, 2023 31 Dec, 2022
Trade receivables 30,178 36,251
Provision for doubtful debts (see page 82 Risk Management) (2,236) (2,936)
Contract assets 2,862 1,171
Total 30,803 34,486
The movement of the provision for doubtful debts is summarised below:
Opening balance (2,936) (3,485)
Provision recorded in the year (911) (759)
Provision used in the year 927 1,143
Provision reversed not used in the year 611 213
Currency exchange difference 73 (48)
Closing balance (2,236) (2,936)
Contract assets include EUR 2.9 million (2022: 1.2 million) of unbilled work in progress in relation to long term contract revenue recognised under
percentage of completion. Please refer to note 5.
NOTE 13. TAX ASSETS
EUR 000s 31 Dec, 2023 31 Dec, 2022
Tax assets 385 2,465
VAT recoverable 4,333 3,934
Total 4,718 6,399
NOTE 14. OTHER CURRENT RECEIVABLES
EUR 000s 31 Dec, 2023 31 Dec, 2022
Deposits 183 200
Prepayments 3,905 4,556
Other receivables 861 1,500
Total 4,949 6,256
NOTE 15. INVENTORIES
EUR 000s 31 Dec, 2023 31 Dec, 2022
Raw materials 20,202 22,856
Finished goods 20,123 22,919
Provision for slow moving inventories (2,896) (2,773)
Total 37,429 43,002
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 74 =====
72 Cavotec | Annual and Sustainability Report 2023
The movement of the provision for slow moving inventories is summarised below:
EUR 000s 2023 2022
Opening balance (2,773) (2,982)
Provision used during the year 923 388
Provision recorded in the year (1,097) (313)
Provision reversed not used in the year – 192
Currency exchange difference 51 (58)
Closing balance (2,896) (2,773)
NOTE 16. PROPERTY, PLANT AND EQUIPMENT
EUR 000s Land & buildings Plant & equipment Fixtures & fittings Total
Year ended 31 December 2022
Opening net book value 2,282 4,148 996 7,426
Additions – 981 202 1,183
Disposals – (177) 8 (169)
Depreciation (23) (1,897) (506) (2,426)
Currency exchange differences (36) (158) 121 (73)
Closing net book value 2,223 2,897 821 5,941
At 31 December 2022
Cost 3,913 19,256 4,550 27,719
Accumulated depreciation (1,690) (16,359) (3,729) (21,778)
Net book amount 2,223 2,897 821 5,941
Year ended 31 December 2023
Opening net book value 2,223 2,897 821 5,941
Additions 10 797 104 911
Disposals (5) – (3) (8)
Depreciation (143) (994) (249) (1,386)
Currency exchange differences – (39) (5) (44)
Closing net book value 2,085 2,661 668 5,414
At 31 December 2023
Cost 3,863 19,773 4,618 28,254
Accumulated depreciation (1,778) (17,112) (3,950) (22,840)
Net book amount 2,085 2,661 668 5,414
LEASES
Amounts recognised in the balance sheet
The Balance Sheet shows the following amounts relating to leases:
EUR 000s 31 Dec, 2023 31 Dec, 2022
Right of use
Land & building 11,283 12,967
Plant & equipment 182 128
Fixtures & fittings 64 118
Total right of use 11,529 13,213
EUR 000s 31 Dec, 2023 31 Dec, 2022
Lease liabilities
Current (2,527) (2,687)
Total (2,527) (2,687)
Non current (9,167) (10,353)
Total (9,167) (10,353)
Amounts recognised in the income statement
The statement of profit or loss shows the following amounts relating to leases:
EUR 000s 31 Dec, 2023 31 Dec, 2022
Depreciation charge of Right of Use assets
Land & building (3,169) (3,074)
Plant & equipment (100) (98)
Fixtures & fittings (42) (49)
Total depreciation charge of right of use assets (3,311) (3,222)
Interest expenses (363) (394)
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 75 =====
Annual and Sustainability Report 2023 | Cavotec 73
The following table summarizes the movements of the right-of-use assets:
31 Dec, 2023 31 Dec, 2022
Right of use assets at January 1 13,213 14,394
Additions 454 –
Lease contract terminations (172) –
Depreciation charge (3,311) (3,222)
Currency translation effects 1,345 2,041
Total right of use assets at December 31 11,529 13,213
NOTE 17. INTANGIBLE ASSETS
EUR 000s Goodwill Patents & trademarks R&D and other Total
Year ended 31 December 2022
Opening net book value 30,242 132 7,814 38,188
Additions – – 1,399 1,399
Disposals – – 31 31
Amortisation – (20) (598) (618)
Currency exchange differences (42) (1) (35) (78)
Closing net book value 30,200 111 8,610 38,920
At 31 December 2022
Cost 30,200 6,530 12,885 49,615
Accumulated amortisation – (6,419) (4,275) (10,695)
Net book amount 30,200 111 8,610 38,920
Year ended 31 December 2023
Opening net book value 30,200 111 8,610 38,920
Additions – 4 620 624
Impairment – – (612) (612)
Amortisation – (15) (1,384) (1,398)
Currency exchange differences (69) (6) (146) (221)
Closing net book value 30,131 96 7,088 37,315
At 31 December 2023
Cost 30,131 6,515 11,464 48,110
Accumulated amortisation – (6,419) (4,376) (10,795)
Net book amount 30,131 96 7,088 37,315
For more details on goodwill impairment testing please refer to note 4.
NOTE 18. NON-CURRENT FINANCIAL ASSETS
EUR 000s 31 Dec, 2023 31 Dec, 2022
Financial receivables 68 69
Financial assets at fair value through PL – 37
Total 68 106
NOTE 19. DEFERRED TAX ASSETS
EUR 000s 31 Dec, 2023 31 Dec, 2022
Deferred tax assets to be recovered within 12 months 1,853 1,642
Deferred tax assets to be recovered after more than 12 months 5,044 4,559
Total 6,897 6,201
EUR 000s 31 Dec, 2023 31 Dec, 2022
Provisions for warranty, doubtful accounts and others 1,209 1,056
Losses carried forward 3,054 2,612
Inventory 1,918 1,542
PPE and intangible assets 3 29
Accrued expenses not currently deductible 35 466
Others temporary differences 678 497
Total 6,897 6,201
The deferred tax assets arose as a consequence of the recognition of temporary differences on provisions relative to doubtful accounts, slow moving
inventories and warranties, which are not tax deductible currently and become deductible for tax purposes when utilised, as well as to tax losses. The
deferred tax assets, include an amount of EUR 3.1 million related to carried-forward tax losses. These are the result of the losses over the last financial
years following the disposal of the Airports business. They relates to the one-off cost and will not recur in the future. The Group has concluded that the
deferred tax assets will be recoverable using the estimated future taxable income based on the approved business plans and budgets. The Group did
not recognise deferred income tax assets on losses carried forward of EUR 208 million (2022: EUR 199 million). The losses carried forward expire after
7 years in Switzerland and amount to EUR 75.6 million of which EUR 23.9 million expire within one year and EUR 51.7 million expire within two to five
years. The remaining part is related to US where, since the implementation of the new tax reform, losses carried forward accumulated until 2017 still
expire in 20 years, while starting from 2018, they never expire but they will only be offsetable up to 80%.
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 76 =====
74 Cavotec | Annual and Sustainability Report 2023
NOTE 20. OTHER NON-CURRENT RECEIVABLES
Other non-current receivables includes deposits for Cavotec Italy building and machinery EUR 0.9 million (2022: EUR 0.8 million).
NOTE 21. LOANS AND BORROWINGS
EUR 000s 2023 2022
Other current financial liabilities – (4,914)
Credit facility non-current portion (22,000) (22,000)
Other non-current financial liabilities – –
Unamortised issuance costs 532 828
Total (21,468) (26,086)
In June 2020, Cavotec secured long-term financing by signing a five years agreement with Credit Suisse and others to provide a EUR 40 million single
currency term and multicurrency revolving credit facility. Syndication costs and upfront fees of EUR 1.437 million were paid during FY 2020 and will be
amortized over the extended duration of the facility.
EUR 000s 2023 2022
Bank overdrafts – 2.00%
Short term debt – 2.82%
Long term debt 9.47% 8.15%
Interest bearing liabilities 9.47% 7.13%
The average cost of the interest bearing liabilities for FY2023 was higher compared to the previous year mainly due to the increase of the interbank
interest rates utilised as base rates for our long term debt interest calculation.
NOTE 22. TRADE PAYABLES
EUR 000s 2023 2022
Trade payables (26,004) (36,126)
Contract liabilities (19,268) (28,125)
Total (45,272) (64,251)
For more details on contract liabilities refer to note 5.
NOTE 23. TAX LIABILITIES
EUR 000s 2023 2022
Tax liabilities (3,649) (1,672)
VAT payable (1,462) (1,429)
Total (5,111) (3,101)
NOTE 24. OTHER CURRENT LIABILITIES
EUR 000s 2023 2022
Employee entitlements (6,162) (6,304)
Accrued expenses and other (5,158) (5,602)
Total (11,320) (11,906)
Employee entitlements include mainly accrued wages and salaries, holidays and other personnel liabilities.
NOTE 25. DEFERRED TAX LIABILITIES
EUR 000s 2023 2022
Deferred tax liabilities to be released within 12 months (208) (51)
Deferred tax liabilities to be released after more than 12 months (1,043) (1,049)
Total (1,251) (1,100)
EUR 000s 2023 2022
PPE and intangible assets (493) (503)
Untaxed reserves (549) (546)
Other (209) (51)
Total (1,251) (1,100)
For more details, please refer to note19.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 77 =====
Annual and Sustainability Report 2023 | Cavotec 75
NOTE 26. PROVISION FOR RISKS AND CHARGES
EUR 000s 2023 2022
Provision for risk and charges, current (2,171) (2,032)
Provision for risk and charges, non-current (1,794) (1,357)
Total (3,965) (3,389)
EUR 000s Jan 1, 2023 Recorded Used
Reversed
not used Exchange diff Dec 31, 2023
Provision for warranty (2,892) (910) 186 306 9 (3,299)
Provision for taxation – (300) – – – (300)
Other provisions (497) (62) – 185 8 (366)
Total (3,389) (1,272) 186 491 17 (3,965)
The warranty provision reflects historic experience of the cost to repair or replace defective products, as well as certain information regarding product failure
experienced during production, installation or testing of products. The provision for taxation is built for expected results of ongoing tax inspections. Other
provisions recorded are mainly related to penalties.
NOTE 27. PENSION PLAN
The Group operates defined benefit pension plans in Switzerland, Italy and Middle East.
Cavotec (Swiss) SA is affiliated to the Swiss Life Collective BVG Foundation based in Zurich. This pension solution fully also reinsures the risks of
disability, death, and longevity. Swiss Life invests the vested pension capital and provides a 100% capital and interest guarantee. Certain features of
Swiss pension plans required by law preclude the plans being categorised as defined contribution plans.
In Italy, the provisions for benefits upon termination of employment, accrued for employee retirement, are determined using actuarial techniques and
regulated by the Italian Civil Code. The benefit is paid upon retirement as a lump sum, the amount of which corresponds to the total of the provisions
accrued during the employees’ service period based on payroll costs as revalued until retirement.
In U.A.E., the Service Gratuity Plan is a defined benefit plan. Benefits under these plans are paid upon termination of employment and consist of
payments based on seniority.
2023 2022
EUR 000s Switzerland Italy U.A.E. Total Total
Present value of defined benefit obligation (DBO) (1,665) – – (1,665) (2,747)
Fair value of plan assets 1,368 – – 1,368 2,616
Deficit of funded plans (297) – – (297) (131)
Present value of unfunded obligations – (215) (57) (272) (370)
Liability in the Balance Sheet (297) (215) (57) (569) (501)
Total as reported in the balance sheet (297) (215) (57) (569) (501)
In addition, the Group has liabilities from defined contribution plan for an amount of EUR 0.91 million.
The movement in the defined benefit obligation over the year is as follows:
2023 2022
EUR 000s Switzerland Italy U.A.E. Total Total
At 1 January (2,747) (322) (48) (3,117) (4,858)
Service cost:
– Current service cost (169) – (9) (178) (231)
– Past service cost – – – – 144
Interest expenses (64) (12) – (76) (14)
Cash flow:
– Benefit payments from plan assets 1,627 – – 1,627 579
– Benefit payments from employer – 125 – 125 99
– Participant contributions (154) – – (154) (196)
– Insurance premium for risk benefits 22 – – 22 23
Other significant event:
– Increase (decrease) due to effect of any
business combinations / divestitures / transfers – – – – 936
Remeasurements:
– Effect of changes in demographic assumptions 2 – – 2 –
– Effect of changes in financial assumptions (100) (2) – (102) 517
– Effect of experience adjustments 32 (4) – 28 33
Exchange differences (115) – – (115) (151)
At 31 December (1,665) (215) (57) (1,937) (3,117)
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 78 =====
76 Cavotec | Annual and Sustainability Report 2023
The movement in the fair value of plan assets over the year is as follows:
2023 2022
EUR 000s Switzerland Italy U.A.E. Total Total
At 1 January 2,616 – – 2,616 2,681
Interest Income 65 – – 65 8
Cash flow:
– Employer contributions 154 125 – 279 295
– Participant contributions 154 – – 154 196
– Benefit payments to plan (1,627) – – (1,627) (579)
– Benefit payments from employer – (125) – (125) (99)
– Administrative expenses paid from plan assets (14) – – (14) (14)
– Insurance premium for risk benefits (22) – – (22) (23)
Remeasurements:
– Return on plan assets (excluding interest income) (56) – – (56) 23
Exchange differences 99 – – 99 128
At 31 December 1,368 – – 1,368 2,616
The amount recognised in the income statement and other comprehensive income are as follows:
2023 2022
EUR 000s Switzerland Italy U.A.E. Total Total
Service cost:
– Current service cost 169 – 9 178 231
– Past service cost – – – – (144)
Total Service cost 169 – 9 178 87
Net interest cost:
– Interest expense on DBO 64 12 – 76 14
– Interest (income) on plan assets 65 – – 65 (8)
Total net interest cost 129 12 – 141 6
Administrative expenses and/or taxes (not reserved within DBO) 14 – – 14 14
Defined benefit cost included in the Income Statement
from continued operations 312 12 9 333 107
Effect of changes in demographic assumptions (3) – – (3) –
Effect of changes in financial assumptions 100 2 – 102 (517)
Effect of experience adjustments (32) 4 – (28) (33)
Return on plan assets (excluding interest income) 56 – – 56 (23)
Exchange Differences – – – – –
Effect of deferred taxes (27) – – (27) 97
Total remeasurements included in Other Comprehensive
Income from continued operations 94 6 – 100 (476)
The Group expects to pay EUR 0.1 million in contribution to defined benefit plans in 2023 concerning the amount to be paid in 2024 (EUR 0.1 million
was the expectation in 2022 concerning the amount to be paid in 2023).
The principal actuarial assumptions were as follows:
2023 2022
Switzerland Italy U.A.E. Switzerland Italy U.A.E.
Discount rate 1.40% 3.80% n/a 2.40% 0.80% n/a
Salary increases 1.30% n/a n/a 1.50% n/a n/a
Inflation 1.10% 2.50% n/a 1.30% 1.70% n/a
The principal demographic assumptions were as follows:
2023 2022
Switzerland Italy U.A.E. Switzerland Italy U.A.E.
Life expectancy BVG 2020 GT n/a n/a BVG 2020 GT n/a n/a
Retirement age 65
In accordance
with current
Italian legislation
normal
(maximum)
retirement
age of 60 M65/F64
In accordance
with current
Italian legislation
normal
(maximum)
retirement
age of 60
Benefit at retirement
60% pension /
40% lump sum n/a –
60% pension /
40% lump sum n/a –
Voluntary turnover – 8.2% n/a – – n/a
Involuntary turnover
(including death and disability) – 1.8% n/a – – n/a
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 79 =====
Annual and Sustainability Report 2023 | Cavotec 77
The following table presents a sensitivity analysis showing how the defined benefit obligation would have been affected by changes in the relevant
actuarial assumption that were reasonably possible at the balance sheet date. This sensitivity applies to the defined benefit obligation only, and not to
the net defined benefit pension liability in its entirety, the measurement of which is driven by several factors including, in addition to the assumptions
below, the fair value of plan assets.
2023 2022
Switzerland Italy U.A.E. Switzerland Italy U.A.E.
Discount rate +0.50% (1,608) (203) – (2,668) (781) –
Discount rate -0.50% (1,725) (227) – (2,839) (847) –
NOTE 28. SHARE CAPITAL
The table below set forth the changes occurred in the Share capital of the Group.
EUR 000s No of ordinary shares (Fully paid) Share capital
Balance at 31 December 2022 94,243,200 (45,288)
Balance at 31 December 2023 106,696,030 (54,130)
NOTE 29. OTHER RESERVES
EUR 000s 2023 2022
Currency translation reserves 19,544 17,707
Share premium reserve (74,814) (69,131)
Actuarial reserve (10) (10)
Reserve for LTIP (132) (189)
Revaluation reserve 89 (10)
Total (55,323) (51,633)
The share premium reserve was created following the Contribution Agreement dated 3 October 2011 between Cavotec SA and the former shareholders
of Cavotec MSL and increased in 2018 in connection with the Rights issue.
In June 2022, AGM adopted the Board of Directors’ proposal to reduce the current share capital of CHF 120,631,296 by CHF 54,661,056 to CHF
65,970,240 by way of reducing the nominal value of the registered shares from CHF 1.28 by CHF 0.58 to CHF 0.70 and to allocate the nominal value
reduction amount to the share premium reserve, which is increased from CHF 19,018,227 to CHF 73,679,283.
In March 2023, an extraordinary general meeting approved the board’s proposal to increase the company’s nominal share capital. The board
subsequently implemented the increase of the Company’s share capital in the amount of CHF 8,716,981.00, from the current share capital of CHF
65,970,240.00 to CHF 74,687,221.00, through the issuance of 12,452,830 new shares of the Company. The shares were placed at a price of SEK
13.25 per share, consequently raising proceeds of approximately SEK 165 million before transaction costs. This capital increase also contributed to the
increase in the share premium reserve.
The currency translation reserve comprises all foreign exchange differences arising from the translation of the Financial Statements of foreign operations
into Euro.
NOTE 30. EARNINGS PER SHARE
Both the basic and diluted earnings per share are calculated using the net results attributable to shareholders of Cavotec SA & Subsidiaries as the
numerator.
EUR 000s 2023 2022
Profit /(Loss) for the year continued operations 180 (3,170)
Profit /(Loss) for the year discontinued operations – (11,522)
Profit /(Loss) for the year 180 (14,692)
Attributable to:
Equity holders of the Group continued operations 180 (3,170)
Equity holders of the Group discontinued operations – (11,522)
Total 180 (14,692)
Weighted-average number of shares outstanding 104,103,112 94,243,200
Basic and diluted earnings per share from continued operations
attributed to the equity holders of the Group 0.002 (0.034)
Basic and diluted earnings per share from discontinued operations
attributed to the equity holders of the Group – (0.122)
Basic and diluted earnings per share attributed to the equity holders of the Group 0.002 (0.156)
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 80 =====
78 Cavotec | Annual and Sustainability Report 2023
NOTE 31. SEGMENT INFORMATION
Operating segments have been determined based on the Group Management structure in place and on the management information and used by the
CODM to make strategic decisions.
In 2022 Cavotec completed the divestment of its Airports business. As a result of the divestment process, from 1 January 2023, the Group has
changed the organizational structure and reporting to the CODM.
The Segment information presented in this report reflects these changes, the comparatives are restated in line with the revised segments. The two new
operating segments are:
• Ports & Maritime – development, manufacture and service of innovative automation and electrification technologies for the global ports and maritime sectors.
• Industry – development, manufacture and service of electrification and radio control products for industrial applications, such as cranes, energy,
processing and transportation, mining, and tunnelling.
Other information that is not reportable has been combined and disclosed within “Other reconciling items” which mainly include not allocated head
office costs.
Information by operating segment for the year ended 31 December, 2023 for each operating segment is summarized below:
Year ended 31 December, 2023
EUR 000s Ports & Maritime Industry
Other reconciling
items Total
Revenue from sales of goods and services 114,688 66,045 – 180,734
Other income 1,048 1,028 – 2,076
Operating expenses before depreciation and
amortization (101,237) (61,903) (5,266) (168,406)
Gross Operating Result 14,499 5,171 (5,266) 14,404
Information by operating segment for the year ended 31 December, 2022 for each operating segment is summarized below:
Year ended 31 December, 2022
EUR 000s Ports & Maritime Industry
Other reconciling
items Total
Revenue from sales of goods and services 88,259 59,590 – 147,849
Other income 830 946 – 1,776
Operating expenses before depreciation and amortization (89,026) (54,294) (4,673) (147,994)
Gross Operating Result 61 6,243 (4,673) 1,631
The CODM assesses the performance of the operating segments based on gross operating result EBITDA. A reconciliation of gross operating result to
profit before income tax is provided as follows:
EUR 000s
Ports & Maritime
2023
Ports & Maritime
2022
Gross operating result for operating segments 11,228 (2,728)
Goodwill impairment & other operational write – downs (927) (358)
Depreciation (2,749) (3,397)
Amortisation (978) (215)
Financial (costs)/income – net (2,152) 3,924
Other financial items (9) (12)
Profit/(Loss) before income tax 4,413 (2,786)
EUR 000s
Industry
2023
Industry
2022
Gross operating result for operating segments 3,177 4,359
Goodwill impairment & other operational write – downs (156) 349
Depreciation (1,944) (2,169)
Amortisation (421) (349)
Financial (costs)/income – net (1,318) 301
Other financial items 14 12
Profit/(Loss) before income tax (648) 2,503
Third party revenues for each operating segment analysed by significant geographical segment is summarised below:
Year ended 31 December 2023
EUR 000s AMER EMEA APAC Total
Ports & Maritime 18,239 45,726 50,723 114,688
Industry 4,751 42,228 19,067 66,045
Total 22,990 87,954 69,790 180,734
Year ended 31 December 2022
EUR 000s AMER EMEA APAC Total
Ports & Maritime 8,621 40,616 39,022 88,259
Industry 4,040 41,602 13,948 59,590
Total 12,661 82,218 52,970 147,849
The consolidated revenues of the Group are generated principally outside of Switzerland, where the company is domiciled, and operations in
Switzerland are relatively insignificant. Due to the nature of the business, no single country represents a significant percentage of Group revenues.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 81 =====
Annual and Sustainability Report 2023 | Cavotec 79
NOTE 32. RELATED PARTY DISCLOSURE
Cavotec SA is the legal parent of the Group. Details of Cavotec SA subsidiaries can be found in note 3.
The Group’s key management personnel comprises the Chief Executive Officer and the members of Cavotec Management Team (CMT). Their total
remuneration, including salary and other short term benefits, amounted to a total of EUR 3.4 million (2022: 5.7 million). The total compensation also
includes compensation to CMT members’ related parties.
To ensure its independence in fulfilling its supervisory duties, the remuneration of the Board of Directors is fixed and does not contain any variable
component.
The remuneration elements for the Management Team consist of four components: salary, pension, other benefits, performance-based non-equity cash
compensation (“STIP”) and performance-based equity-based incentives (“LTIP”). The short-term incentive plan STIP is the cash-based element of the
variable pay for inter alia the Management Team. The LTIP is a three-year performance share-based incentive plan. Its purpose is to foster long-term
value creation for the Group by providing the Management Team and other eligible key managers
Year ended 31 December 2023
EUR 000s
Short-term
employee benefits
Post-employment
benefits
Other long-term
benefits
Termination
benefit
Share-based
payment
Total
Chief Executive Officer 612 367 – – 25 1,004
Cavotec Management Team 2,044 357 – – 43 2,444
Board of Directors 265 23 – – - 288
Total remuneration 2,921 747 – – 68 3,736
Year ended 31 December 2022
EUR 000s
Short-term
employee benefits
Post-employment
benefits
Other long-term
benefits
Termination
benefit
Share-based
payment
Total
Chief Executive Officer 1,285 442 - 1,234 61 3,022
Cavotec Management Team 2,331 219 - 60 47 2,657
Board of Directors 265 22 - - - 287
Total remuneration 3,881 683 - 1,294 108 5,966
In FY2022 there were no transactions with related parties controlled or influenced by Board members.
NOTE 33. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditors of the entity, its related practices and non-related audit firms.
EUR 000s 2023 2022
Audit services
PricewaterhouseCoopers 808 584
Other audit firms 93 130
Total 901 714
Other services performed by audit firms:
Taxation
PricewaterhouseCoopers 132 103
Other audit firms – 4
Total 132 107
Other services:
PricewaterhouseCoopers 35 2,363
Other audit firms – 6
Total 35 2,369
Total 167 2,476
NOTE 34. LEGAL RISKS
As a global company with a diverse business portfolio, the Group is exposed to numerous legal risks, particularly in the areas of product liability,
competition, and tax assessments. The outcome of any current or future proceedings cannot be predicted. It is therefore possible that legal or regulatory
judgments or future settlements could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation payments and could
significantly affect our revenues and earnings.
NOTES TO THE FINANCIAL STATEMENTS |
===== SIDA 82 =====
80 Cavotec | Annual and Sustainability Report 2023
NOTE 35. CONTINGENCIES
EUR 000s 2023 2022
Advance payments and Performance bonds 4,800 1,722
Financial guarantees 100 100
Other guarantees 7,224 10,215
Total 12,124 12,592
The items listed under Contingencies are mainly warranty bonds (under “other guarantees”), performance and advance payment bonds. On the total of
contingencies EUR 2.2 million will expire within one year. There isn’t any expectation to have any significant cash outflow from the outstanding bonds.
NOTE 36. COMMITMENTS
The following table details the commitments associated with Cavotec SA & Subsidiaries.
EUR 000s 2023 2022
Capital commitments
Within one year 313 21
Later than one, not later than two years 101 12
Later than two, not later than five years 30 3
Total 444 36
NOTE 37. SECURITIES AND COLLATERALS
As at 31 December 2023, as last year, there were no real estate related to loans.
NOTE 38. DISCONTINUED OPERATIONS
The completion of the sale of airports occurred 29 July 2022.
In December 2022, Income and expenses of the activities have been reclassified to Discontinued operations in the consolidated income statement.
All assets and liabilities of the discontinued business have been taken out of Cavotec group balance sheet, resulting in 2022 in a final loss on the
divestment of EUR 2.6 million.
Income Statement
EUR 000s
Airports
2023
Airports
2022
Revenue from sales of goods and services – 18,895
Other income – 783
Expenses – (26,867)
CTA – (155)
Loss on the spin off – (2,646)
Loss from discontinued operations before income taxes – (9,991)
Income taxes – (1,531)
Loss from discontinued operations – (11,522)
NOTE 39. SUBSEQUENT EVENTS
SANCTIONS TOWARDS RUSSIA
The group has a very limited exposure to the region considering that the subsidiary in Russia is in liquidation and there is no project ongoing in the
region. The Group is carefully monitoring the evolution of the situation, having a specific focus on the sanctions, that have been and will be imposed.
RUSSIA LIQUIDATION
The liquidation notice to the creditors was published on 24 January 2024. Starting from 24 March 2024, the liquidator will establish the preliminary
liquidation balance sheet.
| NOTES TO THE FINANCIAL STATEMENTS
===== SIDA 83 =====
Annual and Sustainability Report 2023 | Cavotec 81
Annual and Sustainability Report 2023 | Cavotec 81
===== SIDA 84 =====
82 Cavotec | Annual and Sustainability Report 2023
Risk management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The
Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the
financial performance of the Group.
The Board sets the policy for the Group’s centralised treasury operation and its activities are subject to a set of controls commensurate with the
magnitude of the borrowings and investments and Group wide exposures under its management. The Group treasury’s primary role is to manage
liquidity, funding, investments and counterparty credit risk arising with financial institutions. It also manages the Group’s market risk exposures, including
risks arising from volatility in currency and interest rates. The treasury function is not a profit centre and the objective is to manage risk at optimum cost.
The financial risk is managed at the Group and regional level through a series of policies and procedures set and reviewed by the CFO. The Group
treasury applies these policies together with the Presidents of the Divisions and the local finance managers. The Group uses different methods to
measure different types of risk to which it is exposed. These methods include sensitivity analyses in the case of interest rate risk and currency risk while
ageing analyses of receivables is used to assess credit risk.
MARKET RISK
Currency risk
Generally, the Group offers customers the option of paying in local currencies through our global sales organisation. As a result, the Group is continu-
ously exposed to currency risks in accounts receivables denominated in foreign currency and in future sales to foreign customers. This issue of inter-
national pricing is under constant attention at the highest levels of management. As the Group trades across many countries, purchasing and selling in
various currencies, there is a natural hedge within the Group’s overall activities.
The exchange rates listed here below are used to prepare the Financial Statements.
Currency Average rate 2023 Year end rate 2023
AED 3.97 4.06
ARS 316.50 891.85
AUD 1.63 1.63
BRL 5.40 5.36
BHD 0.41 0.42
CAD 1.46 1.46
CHF 0.97 0.93
DKK 7.45 7.45
EUR 1.00 1.00
GBP 0.87 0.87
HKD 8.46 8.63
INR 89.30 91.90
KRW 1412.88 1433.66
NOK 11.42 11.24
NZD 1.76 1.75
QAR 3.94 4.03
RMB 7.66 7.85
RUB 87.72 115.48
SEK 11.48 11.10
SGD 1.45 1.46
USD 1.08 1.11
ZAR 19.96 20.35
At 31 December 2023, had the Euro weakened/strengthened by 10 per cent against foreign currencies to which the Group is exposed, with all other
variables held constant, profit for the year and equity would have been EUR 218 thousands higher/lower (2022: 110 thousands). This is mainly a result
of foreign exchange gains/losses on translation of financial assets and liabilities denominated in currencies other than the Euro and in respect of opera-
tions in non-Euro jurisdictions for financial assets and liabilities not in their local currency.
A sensitivity of 10 per cent has been selected as this is considered reasonable given the current level of exchange rates and the volatility observed both
on an historical basis and market expectations for future moves. In order to assess the potential impact on the Income Statement assets and liabilities in
the same currency used by the relevant entity in its reporting were excluded from the sensitivity analysis.
2023 2022
EUR 000s EUR -10% EUR +10% EUR -10% EUR +10%
Receivables 1,226 (1,226) 338 (338)
Payables (1,523) 1,523 (558) 558
Financial assets 633 (633) 110 (110)
Financial liabilities – – – –
Total increase / (decrease) 336 (336) (110) 110
| RISK MANAGEMENT
===== SIDA 85 =====
Annual and Sustainability Report 2023 | Cavotec 83
The carrying amounts of the Group’s trade receivables, trade payables and contract liabilities are held in the following currencies:
2023 2022
EUR 000s Receivables
Trade payables and
contract liabilities Receivables
Trade payables and
contract liabilities
EUR 15,679 (30,046) 21,784 (42,943)
USD 4,781 (7,182) 5,735 (4,872)
RMB 2,566 (5,638) 1,742 (10,608)
AED – (25) 462 (343)
GBP 713 (51) 80 (240)
SEK 798 (317) 452 (710)
NOK 1,282 (124) 766 (951)
AUD 1,713 (878) 1,493 (755)
CHF – (282) – (2,333)
INR 372 (629) 739 (374)
RUB – – – (8)
BHD – – 62 (114)
Other 38 (100) – –
Total 27,942 (45,272) 33,315 (64,251)
Financial assets and financial liabilities held at year end are held in the following currencies (data include lease liabilities):
2023 2022
EUR 000s Financial Assets Financial Liabilities Financial Assets Financial Liabilities
EUR 8,798 (21,468) 4,397 (25,485)
USD 1,308 – 2,078 –
RMB 1,547 – 449 –
AED 37 – 316 –
GBP 429 – 215 –
SEK 270 – 158 –
NOK 66 – 374 –
AUD 1,119 – 783 –
CHF 74 – 57 (601)
HKD 21 – 12 –
INR 1,087 – – –
RUB – – 315 –
Other 369 – 577 –
Total 15,124 (21,468) 9,731 (26,086)
Interest rate risk
Interest rate risk management is aimed at balancing the structure of the debt, minimising borrowing costs over time and limiting the volatility of results.
The Group is party to fixed interest rate loan agreements in the normal course of business in order to eliminate the exposure to increases in interest
rates in the future. The amount of floating rate debt is the main factor that could impact the Statement of Comprehensive Income in the event of an
increase in market rates. At 31 December, 2023 100% of the debt was floating rate (2022: 93%). A fluctuation of 1% in interest rates would have in
absolute terms an impact of EUR 220 thousands in the profit and loss statement.
Fair value estimation
Financial assets and liabilities recorded at fair value in the Consolidated Financial Statements are categorised based upon the level of judgement
associated with the inputs used to measure their fair value. There are three hierarchical levels, based on an increasing amount of subjectivity associated
with the inputs to derive fair valuation for these assets and liabilities, which are as follows:
• Level 1: Determination of fair value based on quoted prices (unadjusted) for identical assets or liabilities in active markets
• Level 2: Determination of fair value based on inputs other than the quoted prices of Level 1 but which are directly or indirectly observable
• Level 3: Determination of fair value based on valuation models with inputs for the asset or liability that are not based on observable market data
RISK MANAGEMENT |
===== SIDA 86 =====
84 Cavotec | Annual and Sustainability Report 2023
The following tables present the Group’s assets and liabilities measured at fair value by valuation method at 31 December 2023 and at 31
December 2022:
2023
EUR 000s Level 1 Level 2 Level 3 Total
Assets
Assets held for sale 1,814 – – 1,814
Total assets 1,814 – – 1,814
Liabilities – – – –
Non-current trading derivatives – – – –
Total liabilities – – – –
2022
EUR 000s Level 1 Level 2 Level 3 Total
Assets
Non-current financial assets – – 37 37
Assets held for sale – – 2,320 2,320
Total assets – – 2,357 2,357
Liabilities
Non-current trading derivatives – – – –
Total liabilities – – – –
Assets held for sale as at 31 December 2023 that are carried over from 2020 are the Trondheim building (Norway) for a total amount of EUR 1.8
million. The building was accounted as assets held for sale with a book value of EUR 2.3 million in December 2022, but as in December 2023 Cavotec
has signed an agreement for the sale of the building the amount has been adjusted to the market value.
Please refer to note 9 and 38 for more disclosure on the reclassification of assets held for sale that are measured at the lower of carrying value and fair
value less cost to sell.
CREDIT RISK
Credit risk arises from cash and cash equivalents, deposits with banks, as well as credit exposures to customers, including outstanding receivables
and committed transactions and it is managed on a Group basis. A fundamental tenet of the Group’s policy of managing credit risk is customer
selectivity. The Group has many customers in its various geographies and therefore there is no concentration of credit. The Group’s largest customers
are prominent international companies and, while none of these represent a material percentage of total sales, outstanding receivables from these are
regularly monitored and contained within reasonable limits. Large value sales are authorised by the Presidents of the Divisions, the CFO or the CEO,
and require customers to pay a deposit or pay in advance. The Group has a credit policy which is used to manage this credit exposure.
The Group requires that provisions for doubtful debts are recorded not only to cover exposure relative to specific accounts in difficulty but also for
accounts receivables balances which are past due for periods in excess of normal trading terms.
EUR 000s 2023 Expected Credit Loss % Expected Credit Loss
Not yet due 24,046 (60) 0.25%
Overdue up to 30 days 4,634 (19) 0.42%
Overdue up to 30 and 60 days 1,087 (12) 1.08%
Overdue up to 60 and 90 days 943 (13) 1.38%
Overdue up to 90 and 120 days 189 (3) 1.69%
Overdue up to 120 and 150 days 39 (38) 97.02%
Overdue more than 150 days 2,103 (2,092) 99.49%
Total 33,040 (2,237)
In the category “Not yet due”, EUR 2.9 million (2022: 1.2 million) are under contract assets.
At 31 December, 2023 EUR 2.2 million (2022: EUR 2.9 million) have been provisioned according to the percentages of expected credit loss shown
in the table.
| RISK MANAGEMENT
===== SIDA 87 =====
Annual and Sustainability Report 2023 | Cavotec 85
EUR 000s 2022 Expected Credit Loss % Expected Credit Loss
Not yet due 22,776 (65) 0.30%
Overdue up to 30 days 6,198 (35) 0.56%
Overdue up to 30 and 60 days 2,632 (58) 2.20%
Overdue up to 60 and 90 days 1,258 (28) 2.20%
Overdue up to 90 and 120 days 938 (24) 2.58%
Overdue up to 120 and 150 days 438 (216) 48.51%
Overdue more than 150 days 3,182 (2,510) 78.79%
Total 37,421 (2,936)
NET DEBT
Net Debt is defined as financial liabilities (excluding lease liabilities) minus cash and cash equivalents and current financial assets.
EUR 000s 2023 2022
Cash and cash equivalents 15,056 9,625
Short-term debt – (4,914)
Long-term debt (22,000) (22,000)
Total (6,944) (17,289)
Note that long-term debt excludes issuance costs. See note 21.
EUR 000’s
Cash and cash
equivalents
Short-term
debt
Long-term
debt
Lease
Liabilities
Net
position
Opening balance Jan 1, 2022 12,230 (4,124) (10,277) (14,275) (16,424)
Cash flows (4,527) (790) (11,723) 3,073 –
Currency exchange differences 1,922 – – (1,838) –
Other non-cash movements – – – – –
Closing balance Dec 31, 2022 9,625 (4,914) (22,000) (13,040) (30,328)
EUR 000’s
Cash and cash
equivalents
Short-term
debt
Long-term
debt
Lease
Liabilities
Net
position
Opening balance Jan 1, 2023 9,625 (4,914) (22,000) (13,040) (30,328)
Cash flows 7,075 4,696 – 3,516 –
Currency exchange differences (1,644) – – (1,810) –
Other non-cash movements – 218 – (360) –
Closing balance Dec 31, 2023 15,056 – (22,000) (11,694) (18,638)
LIQUIDITY RISK
Liquidity risk is managed by the Group treasury, which ensures adequate coverage of cash needs by entering into short, medium and long-term
financial instruments to support operational and other funding requirements. The Board reviews and approves the maximum long-term funding of the
Group and on an on-going basis considers any related matters on at least an annual basis. Short- and medium-term requirements are regularly reviewed
and managed by the centralised treasury operation within the parameters set by the Board.
The Group’s liquidity and funding management process includes projecting cash flows and considering the level of liquid assets in relation thereto,
monitoring Balance Sheet liquidity and maintaining a diverse range of funding sources and back-up facilities. The Board reviews Group forecasts,
including cash flow forecasts, on a quarterly basis. The Group treasury collects cash forecasts from group companies more frequently to assess the
short and medium-term Group’s requirements. Group treasury works closely with the local finance managers and divisions in order to identify and
monitor relevant cash items with the goal to assure a promptly collection of receivables. These assessments ensure the Group responds to possible
future cash constraints in a timely manner. Operating finance requirements of group companies are managed by the Group treasury, which is also
responsible for investing liquid surplus assets not immediately required by operating companies.
In June 2020, Cavotec secured long-term financing by signing a five years agreement with Credit Suisse and others to provide a EUR 40 million single
currency term and multicurrency revolving credit facility.
The syndicated loan facility bears interest for each interest period at a rate per annum equal to EURIBOR plus a variable margin which will be adjusted
every quarter to reflect any changes in the ratio of net debt (including lease liabilities) to consolidated adjusted EBITDA as determined on a rolling
basis. The loans are subject to certain restrictive covenants, including, but not limited to, additional borrowing, certain financial ratios, limitations on
acquisitions and disposals of assets. If the financial covenants are not met and their breach is not remedied within a certain period or the lenders do not
waive the covenants, there may grounds for termination under the conditions of the credit facility.
As of December 31, 2023, the Group’s total available credit facilities, which related to the above mentioned syndicated loan facility agreement and to
other credit facilities with local banks, amounted to EUR 40 million, of which EUR 26.3 million was utilized (2022: 34.9 million). In the EUR 26.3 million,
EUR 4.3 million are related to bank guarantees that are not included in the balance sheet statements; for more information please see note 35 of the
consolidated financial statements. The table below analyses the Group’s financial liabilities, excluding trade payables, into relevant maturity groupings
based on the remaining period at the reporting date to the contractual maturity date against the cash and cash equivalent balances.
As of December 31, 2023, the Group has insurance guarantees facilities amount of EUR 14.9 million of which EUR 2.2 million was utilized.
RISK MANAGEMENT |
===== SIDA 88 =====
86 Cavotec | Annual and Sustainability Report 2023
2023
EUR 000s Less than 1 year 1 to 3 years 3 to 5 years More than 5 years
Long-term debt (2,084) (23,042) – –
Lease liabilities (3,142) (4,364) (3,462) (1,603)
Trade Payables (26,004) – – –
Other Payables (11,320) – – –
Total (42,550) (27,406) (3,462) (1,603)
Cash and cash equivalents 15,056 – – –
The long term debt includes the maturity analysis based on the contractual undiscounted cashflow. The interests are included using an average interest
rate of 9.47%.
Later than five years Lease liabilities include the lease agreement of 12 years signed in 2016 by Cavotec Specimas SpA for the lease of the warehouse
located in Nova Milanese (Italy). Cavotec SA has provided to Cavotec Specimas SpA’s landlord, a parent guarantee to banks of EUR 6,370 thousands
regarding this leasing agreement.
2022
EUR 000s Less than 1 year 1 to 3 years 3 to 5 years More than 5 years
Bank overdrafts and short-term debt (4,914) – – –
Long-term debt (1,569) (24,353) – –
Lease liabilities (2,987) (4,257) (2,937) (2,859)
Trade Payables (36,126) – – –
Other Payables (11,906) – – –
Total (57,502) (28,610) (2,937) (2,859)
Cash and cash equivalents 9,625 – – –
2023 Credit facilities
EUR 000s Total credit facilities
Total credit
facilities utilisation
Syndicated facility
utilisation (loan)
Syndicated facility
utilisation (guarantees)
Non-current financial liabilities 40,000 26,275 22,000 4,275
Total 40,000 26,275 22,000 4,275
2022 Credit facilities
EUR 000s Total credit facilities
Total credit
facilities utilisation
Syndicated facility
utilisation (loan)
Syndicated facility
utilisation (guarantees)
Current financial liabilities 5,355 4,914 – –
Non-current financial liabilities 40,000 30,030 22,000 8,030
Total 45,355 34,944 22,000 8,030
In the syndicated facility utilization, EUR 22.0 million are utilized as loans and EUR 4.3 million are utilized as standby letter of credits and guarantees.
The Group does not have collateral or credit enhancements that would influence its credit exposure. The maximum exposure to credit risk is the carrying
amount of each class of financial asset.
CAPITAL RISK MANAGEMENT
The Group and the Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue
to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure that reduces the cost of capital. In
order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders,
issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of its debt to equity ratio calculated by comparing senior Net
Debt to Total equity. In monitoring the level of indebtedness, on-going attention is given by management to the level of net debt, leverage ratio and
assets to equity ratio calculated in accordance to the Groups financing facility.
The ratios at 31 December 2023 and 31 December 2022 (both including the impact of IFRS 16) were as follows:
EUR 000s 2023 2022
Total interest bearing liabilities (33,694) (39,954)
Cash and cash equivalents 15,056 9,625
Net debt (18,638) (30,328)
Senior net debt (18,638) (30,328)
Total equity (56,562) (43,850)
Senior net debt/equity ratio 33.0% 69.2%
Equity/asset ratio 36.0% 26.2%
Leverage ratio 1.29x 12.50x
The Group has to comply to the following financial covenants: The Leverage Ratio (Net Senior Debt on the last day of that relevant period to adjusted EBITDA in respect
of that relevant period) and The Equity Ratio.
The Leverage Ratio for the Group (on a consolidated basis) shall amount to a maximum of 4.00x for the testing period ending on 31 December 2023 and 3.5x for each
testing period ending thereafter, according to the Amendment Agreement dated June 2023.
The Equity Ratio for the Group (on a consolidated basis) shall amount to a minimum of 30% for each testing period ending in 2023 and 32.5% for each testing period
ending thereafter, according to the Amendment Agreement dated 9 March 2023.
| RISK MANAGEMENT
===== SIDA 89 =====
Annual and Sustainability Report 2023 | Cavotec 87
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.
Report of the statutory auditor
to the General Meeting of Cavotec SA
Lugano
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of Cavotec SA and its subsidiaries (the Group), which comprise
the statement of comprehensive income for the year ended 31 December 2023, the balance sheet as at 31 December
2023, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the fi-
nancial statements, including material a ccounting policy information.
In our opinion, the consolidated financial statements (pages 57 to 86) give a true and fair view of the consolidated
financial position of the Group as at 31 December 2023 and its consolidated financial performance and its consolidated
cash flows for the year then ended in ac cordance with IFRS Accounting Standards and comply with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) 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 consolidated financial statements' section of our report. We are independent of the
Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as the
International Code of Ethics for Professional Accountants (including International Independence Standards) issued by
the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsi-
bilities 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.
Our audit approach
Overview Overall Group materiality: EUR 1.5 million
We concluded full scope audit work at 15 reporting units in 14 countries. Our
audit scope addressed over 96% of the Group’s revenue. In addition, review
procedures were performed on a further 7 reporting units in 6 countries, repre-
senting a further 4% of the Group’s revenue.
As key audit matter the following area of focus has been identified:
Goodwill impairment test: Ports & Maritime and Industry
===== SIDA 90 =====
88 Cavotec | Annual and Sustainability Report 2023
Cavotec SA | Report of the statutory auditor to the General Meeting
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable
assurance that the consolidated financial statements are free from material misstatement. Misstatements may arise due
to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influ-
ence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall
Group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial
statements as a whole.
Overall Group materiality EUR 1.5 million
Benchmark applied Total revenues
Rationale for the materiality bench-
mark applied
We chose total revenue as the benchmark for determining materiality. This ba-
sis takes into account the development and volatility of the business activities
and is a generally accepted benchmark for materiality considerations.
We agreed with the Audit Committee that we would report to them misstatements above EUR 75'000 identified during
our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consoli-
dated financial statements as a whole, taking into account the structure of the Group, the accounting processes and con-
trols, and the industry in which the Group operates.
The Group is primarily structured into two business units “Ports and Maritime” and "Industry". The Group financial state-
ments are a consolidation of 24 reporting units, comprising the Group's operating businesses and centralised functions.
In establishing the overall approach to the Group audit, we determined the type of work to be performed by us, as the
Group engagement team, by component auditors from PwC network firms and by component auditors from other firms
operating under our instructions. We concluded full scope audit work at 15 reporting units in 14 countries. In addition,
review procedures were performed on a further 7 reporting units in 6 countries. The Group’s consolidation, financial
statement disclosures and goodwill are audited by the Group engagement team.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Goodwill impairment test: Ports & Maritime and Industry
Key audit matter How our audit addressed the key audit matter
Refer to page 68 (Note 4 Critical accounting estimates
and judgments).
The goodwill impairment assessment for Ports & Maritime
and Industry is considered as a key audit matter due to the
size of the goodwill balance (EUR 30.1 million as of 31 De-
cember 2023 and EUR 30.2 million as of 31 December
2022) as well as the considerable judgement required by
Group management in making their assessment on the im-
pairment test.
We evaluated Group management’s assumptions as de-
scribed on page 68 (Note 4) of the financial statements
and discussed these with the Audit Committee and
responsible management.
We evaluated Group management’s assumptions and we
challenged management on the inclusion of all appropriate
assets and liabilities in the cash-generating units.
In relation to the value in use, we performed the following:
===== SIDA 91 =====
Annual and Sustainability Report 2023 | Cavotec 89
Cavotec SA | Report of the statutory auditor to the General Meeting
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable
assurance that the consolidated financial statements are free from material misstatement. Misstatements may arise due
to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influ-
ence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall
Group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial
statements as a whole.
Overall Group materiality EUR 1.5 million
Benchmark applied Total revenues
Rationale for the materiality bench-
mark applied
We chose total revenue as the benchmark for determining materiality. This ba-
sis takes into account the development and volatility of the business activities
and is a generally accepted benchmark for materiality considerations.
We agreed with the Audit Committee that we would report to them misstatements above EUR 75'000 identified during
our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consoli-
dated financial statements as a whole, taking into account the structure of the Group, the accounting processes and con-
trols, and the industry in which the Group operates.
The Group is primarily structured into two business units “Ports and Maritime” and "Industry". The Group financial state-
ments are a consolidation of 24 reporting units, comprising the Group's operating businesses and centralised functions.
In establishing the overall approach to the Group audit, we determined the type of work to be performed by us, as the
Group engagement team, by component auditors from PwC network firms and by component auditors from other firms
operating under our instructions. We concluded full scope audit work at 15 reporting units in 14 countries. In addition,
review procedures were performed on a further 7 reporting units in 6 countries. The Group’s consolidation, financial
statement disclosures and goodwill are audited by the Group engagement team.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Goodwill impairment test: Ports & Maritime and Industry
Key audit matter How our audit addressed the key audit matter
Refer to page 68 (Note 4 Critical accounting estimates
and judgments).
The goodwill impairment assessment for Ports & Maritime
and Industry is considered as a key audit matter due to the
size of the goodwill balance (EUR 30.1 million as of 31 De-
cember 2023 and EUR 30.2 million as of 31 December
2022) as well as the considerable judgement required by
Group management in making their assessment on the im-
pairment test.
We evaluated Group management’s assumptions as de-
scribed on page 68 (Note 4) of the financial statements
and discussed these with the Audit Committee and
responsible management.
We evaluated Group management’s assumptions and we
challenged management on the inclusion of all appropriate
assets and liabilities in the cash-generating units.
In relation to the value in use, we performed the following:
The goodwill impairment test depends on the estimation of
future cash flows. Judgement is required to determine the
assumptions relating to the future business results and the
discount rate applied to the forecasted cash flows.
We compared Group management’s expectations of reve-
nue growth and gross profit margins, included in the five-
year plan included in the impairment model, with the com-
pany’s budget, forecasts and the projects in the pipeline.
We evaluated Group management’s assumptions of long-
term growth rates, by comparing them with economic and
industry forecasts. We also evaluated, with the support of
our PwC valuation team, certain management’s valuation
parameters, specific to the model.
We applied professional skepticism when reviewing the
forecasts for the market units by stress testing key as-
sumptions, assessing the impact on the sensitivity analysis,
and understanding the degree to which assumptions would
need to move before impairment would be triggered.
The procedure performed provided a sufficient basis to
conclude on the approach of goodwill impairment assess-
ment.
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 financial statements, the consolidated financial statements, the remunera-
tion report and our auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial state-
ments, 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 consolidated financial statements
The Board of Directors is responsible for the preparation of consolidated financial statements that give a true and fair
view in accordance with IFRS Accounting Standards and the provisions of Swiss law, and for such internal control as the
Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
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, ISAs and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ-
ence the economic decisions of users taken on the basis of these consolidated financial statements.
Cavotec SA | Report of the statutory auditor to the General Meeting
===== SIDA 92 =====
90 Cavotec | Annual and Sustainability Report 2023
Cavotec SA | Report of the statutory auditor to the General Meeting
A further description of our responsibilities for the audit of the consolidated financial statements is located on EXPERT-
suisse's website: http://www.expertsuisse.ch/en/audit-report. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control sys-
tem that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the consoli-
dated financial statements.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers SA
Laura Cazzaniga
Licensed audit expert
Thomas Wallmer
Licensed audit expert
Auditor in charge
Lugano, 11 April 2024
===== SIDA 93 =====
Annual and Sustainability Report 2023 | Cavotec 91
Annual and Sustainability Report 2023 | Cavotec 91
Cavotec SA | Report of the statutory auditor to the General Meeting
A further description of our responsibilities for the audit of the consolidated financial statements is located on EXPERT-
suisse's website: http://www.expertsuisse.ch/en/audit-report. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control sys-
tem that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the consoli-
dated financial statements.
We recommend that the consolidated financial statements submitted to you be approved.
PricewaterhouseCoopers SA
Laura Cazzaniga
Licensed audit expert
Thomas Wallmer
Licensed audit expert
Auditor in charge
Lugano, 11 April 2024
===== SIDA 94 =====
92 Cavotec | Annual and Sustainability Report 2023
Statutory
Financial
Statements
Please note that all reported amounts are in CHF.
===== SIDA 95 =====
Annual and Sustainability Report 2023 | Cavotec 93
Income statement
Cavotec SA
CHF Notes 2023 2022
Net proceeds of services 2,288,504 1,182,735
Other Income – 3,793,541
Staff cost (233,395) (1,586,305)
Transportation expenses (68) –
External services (1,766,962) (6,989,588)
Travelling expenses (42,142) (25,721)
General expenses (513,378) (412,778)
Depreciation fixed assets (89,848) –
Operating result (357,289) (4,038,116)
Finance costs – net (1,717,629) (320,477)
Foreign exchange – net (1,830,486) (1,001,448)
Translation differences (3,652,038) (4,375,185)
Profit / (Loss) before taxes (7,557,443) (9,735,226)
Income taxes (11,556) (23,971)
Profit / (Loss) for the year (7,568,999) (9,759,197)
Balance Sheet
Cavotec SA
Assets
CHF Notes 2023 2022
Current assets
Cash and cash equivalents 140,416 163,014
Other short-term receivables 3,171,673 7,990,192
from third parties 47,881 214,404
from group companies 3,123,792 7,775,788
Accrued income and prepaid expenses 13,095 38,897
Total current assets 3,325,184 8,192,103
Non-current assets
Intangible assets 171,227 –
Financial assets 62,936 66,926
Investments in subsidiary companies 3 86,455,757 91,936,268
Total non-current assets 86,689,921 92,003,194
Total assets 90,015,104 100,195,297
Liabilities
CHF Notes 2023 2022
Short-term liabilities
Other short-term liabilities (5,027,332) (11,632,319)
to third parties (185,930) (2,802,713)
to group companies (4,841,403) (8,829,606)
Short-term interest-bearing liabilities 7 – (3,973,765)
Accruals and deferred income (402,684) (1,744,582)
Other liabilities (183,149) –
Total short-term liabilities (5,613,165) (17,350,666)
Long-term interest bearing liabilities 7 (34,183,041) (41,402,193)
Unrealized exchange gain (2,797,223) (902,200)
Other Long-term liabilities (132,878) (200,132)
Total long-term liabilities (37,113,143) (42,504,525)
Total liabilities (42,726,308) (59,855,191)
Equity
CHF Notes 2023 2022
Share capital 4 (74,687,221) (65,970,240)
Share premium reserve (79,479,992) (73,679,283)
Loss brought forward 99,309,417 89,550,220
Result for the period 7,568,999 9,759,197
Total equity (47,288,797) (40,340,106)
Total equity and liabilities (90,015,104) (100,195,297)
STATUTORY FINANCIAL STATEMENTS |
===== SIDA 96 =====
94 Cavotec | Annual and Sustainability Report 2023
NOTE 1. GENERAL
Cavotec SA (the ”Company”) is the ultimate parent company of the Cavotec Group.
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, Per-
formance and Team Work. 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 Team
Work. Cavotec’s personnel represent a large number of cultures and provide customers with local support, backed by the Group’s global network of
engineering expertise. Cavotec SA, the Parent company, is a limited liability company incorporated and domiciled in Switzerland and listed on Nasdaq
Stockholm Mid Cap. The Consolidated Financial Statements are of overriding importance for the purpose of the economic and financial assessment of
the Company. The unconsolidated Statutory Financial Statements of the Company are prepared in accordance with Swiss law, the Code of Obligations
(SCO), and serve as complementary information to the Consolidated Financial Statements.
NOTE 2. ACCOUNTING PRINCIPLES APPLIED IN THE PREPARATION OF THE FINANCIAL STATEMENTS
Exchange rate differences – The Company keeps its accounting records in Euro and translates them into Swiss Francs (CHF) for statutory reporting
purposes.
The Euro Statutory Financial Statements have been translated into Swiss Francs as follows:
Assets and liabilities closing rate
Own shares and shareholders’ equity historical rate
Income and expenses average rate
Impairment charges spot rate
Translation gains are deferred and translation losses are included in the determination of net income.
Current assets and liabilities – Current assets and liabilities are recorded at cost less adjustments for impairment of value.
Financial assets – Financial assets are recorded at acquisition cost less adjustments for impairment of value.
Treasury shares – Treasury shares are recognised at acquisition cost and deducted from shareholders’ equity at the time of acquisition. In case of
resale, the gain or loss is allocated or charged to equity.
Revenue from sale of goods and services – Revenue from services is recorded as at invoicing. Once the service has been rendered it is invoiced, at
the latest at the end of each quarter.
NOTE 3. INVESTMENT IN SUBSIDIARY COMPANIES
Company name Purpose Domicile
Ownership interest
2023
Ownership interest
2022 Curr.
Share Capital
2023
Share Capital
2022
Cavotec (Swiss) SA Service company Switzerland 100% 100% CHF 200,000 200,000
Cavotec MoorMaster Ltd
Holding &
engineering New Zealand 100% 100% NZD 196,164,928 196,164,928
Cavotec USA Inc Sales company USA 100% 100% USD 68,000,000 68,000,000
Cavotec India Private Ltd Sales company India 0% 0% INR 46,000 46,000
NOTE 4. SHAREHOLDERS’ EQUITY
The share capital as of 31 December 2023 is divided into 106,696,030 shares at a part value CHF 0.70 each.
CHF Share Capital
Legal Reserve
Share Premium
Reserve
Prior Year
Retained
Earnings
Result for
the period
Total
Shareholder’s
equityTreasury shares
Opening balance at January 1, 2022 120,631,296 – 19,018,227 (44,142,721) (45,407,500) 50,099,302
Purchase of Treasury shares – – – – – –
Sales of Treasury shares – – – – – –
Reduction share capital (54,661,056) – – – – (54,661,056)
Increase Share reserve – – 54,661,056 – – 54,661,056
Result of the period – – – – (9,759,197) (9,759,197)
Allocation prior year result – – – (45,407,500) 45,407,500 –
Balance at December 31, 2022 65,970,240 – 73,679,283 (89,550,220) (9,759,197) 40,340,106
Opening balance at January 1, 2023 65,970,240 73,679,283 (89,550,220) (9,759,197) 40,340,106
Purchase of Treasury shares – – – – – –
Sales of Treasury shares – – – – – –
Increase share capital 8,716,981 – – – – 8,716,981
Increase share reserve – – 5,800,709 – – 5,800,709
Result of the period – – – – (7,568,999) (7,568,999)
Allocation prior year result – – – (9,759,197) 9,759,197 –
Balance at December 31, 2023 74,687,221 – 74,479,992 (99,309,417) (7,568,999) 47,288,796
Notes to Statutory Financial Statements
| NOTES TO STATUTORY FINANCIAL STATEMENTS
===== SIDA 97 =====
Annual and Sustainability Report 2023 | Cavotec 95
During year 2023 the Board of Directors of Cavotec SA has resolved the implementation of a new Long Term Incentive Plan (“LTIP”) program 2023-
2025 in addition to the LTIP 2021-2023 and LTIP 2022-2024 for certain key employees to increase and enhance its ability to recruit, retain and motivate
employees and to encourage personal long term ownership of Cavotec SA shares among the participants.
The short-term incentive plan (STIP) is an annual non-equity cash compensation and is the cash-based element of the variable remuneration for senior
executives, while the long-term incentive plan (LTIP) is aimed to create a managing shareholder culture by allowing selected key employees of the
Group to become shareholders of Cavotec SA.
Further information is in the Remuneration Report on page 38.
Share capital as of December 31, 2023 No of registered shares Par value (CHF) Total (CHF)
Issued shares 106,696,030 CHF 0.70 CHF 74,687,221
Contingent shares 942,430 CHF 0.70 CHF 659,701
Authorised shares 9,424,320 CHF 0.70 CHF 6,597,024
On March 13, 2023, the Board of Directors proposes to increase the company’s share capital by a maximum nominal amount of CHF 9,895,536.00
with a maximum number of the new registered shares to be issued 14,136,480 with a par value of CHF 0.70.
On March 17, 2023, a meeting of the board of directors was held where it was decided for a capital increase of CHF 8,716,981 from nominal
65,970,240.00 to nominal CHF 74,687,221.00, through issuance of 12,452,830 fully paid-in registered shares with a par value of CHF 0.70 each.
The Board of directors was authorized to increase the share capital in an amount not to exceed CHF 6,597,024.00 through the issuance of up to
9,424,320 share with a par value of 0.70 CHF per share by not later than June 2, 2024.
NOTE 5. SIGNIFICANT SHAREHOLDERS
The end of the year and based on the available information, five main shareholders are:
Year ended 31 December 2023 Number %
Bure Equity AB Financial institution 37,554,921 35.3%
TomEnterprise Private AB (Thomas von Koch) Investment Fund 18,666,109 17.5%
Fabio Cannavale Individual investor 7,583,008 7.1%
Fjärde AP-fonden Investment Fund 6,793,710 6.4%
Nordea Fonder Investment Fund 4,635,626 4.4%
Fondita Fund Management Investment Fund 2,000,000 1.9%
Total 77,233,374 72.5%
Year ended 31 December 2022 Number %
Bure Equity AB Financial institution 33,321,619 35.4%
Thomas von Koch Individual investor 11,203,289 11.9%
Fabio Cannavale (Nomina SA) Individual investor 7,901,857 8.4%
Fjärde AP-Fonder Investment Fund 6,000,465 6.4%
Nordea Fonder Investment Fund 5,049,421 5.4%
Total 63,476,651 67.5%
NOTE 6. SHARE OWNERSHIP – BOARD OF DIRECTORS AND CAVOTEC MANAGEMENT TEAM
Based on publicly available information, the ownership by members of the Board and Cavotec Management Team is as follow:
Shareholders as of 31 December 2023 Number %
Patrik Tigerschiöld (Anna Kirtap AB & familly) Chairman 1,598,000 1.50%
David Pagels CEO 750,000 0.70%
Niklas Edling Board member 83,599 0.08%
Annette Kumlien Board member 75,000 0.07%
Patrick Mares CMT member 18,950 0.02%
Peter Nilsson Board member – –
Keith Svendsen Board member – –
Total 2,525,549 2.4%
NOTES TO STATUTORY FINANCIAL STATEMENTS |
===== SIDA 98 =====
96 Cavotec | Annual and Sustainability Report 2023
NOTE 7. SHORT-TERM AND LONG-TERM INTEREST BEARING LIABILITIES
In June 2020 Cavotec SA secured long-term financing by signing an agreement with Credit Suisse, Banca dello Stato del Cantone Ticino and Privat
Debt Fund SA to provide a EUR 40 Million single currency term and multicurrency revolving credit facility, and portion utilized as of 31 December 2023
has been classified as long term.
CHF 31 December 2023 31 December 2022
Bank overdraft – 1,063,976
Short-term interest bearing liabilities to other group companies – –
Short-term interest bearing liabilities to Corner – 2,909,789
Total short-term interest bearing liabilities – 3,973,765
Long-term interest bearing liabilities Credit Suisse 20,372,000 21,663,400
Long-term interest bearing liabilities to other group companies 13,811,041 19,738,793
Total long-term interest bearing liabilities 34,183,041 41,402,193
CHF 31 December 2023 31 December 2022
Less than 1 year – 3,973,765
1 to 5 years 34,183,041 37,428,428
More than 5 years – –
NOTE 8. GUARANTEES AND COMMITMENTS
The following table provides quantitative data regarding the Company’s third-party guarantees.
CHF 31 December 2023 31 December 2022
Advance payment bonds 97,196 102,659
Performance bond 689,403 1,030,170
Parent guarantee 6,360,981 7,578,216
Total 7,147,580 8,711,045
Cavotec SA carries joint liability in respect of the federal tax authorities for value added tax liabilities of its Swiss subsidiary, furthermore Cavotec SA is a
guarantor for the existing EUR 40 million syndicated credit facility.
NOTE 9. RISK ASSESSMENT DISCLOSURE
Cavotec SA, as the ultimate parent company of Cavotec Group, is fully integrated into the Company internal risk assessment process.
The Company-wide internal risk assessment process consists of regular reporting to the Board of Directors of Cavotec SA on identified risks and
management’s reaction to them. The procedures and actions to identify the risks, and where appropriate remediate, are performed by specific corporate
functions as well as by the operating companies of the Group. It also adopted and deployed Group-wide the 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.
Financial risks management is described in more detail in the Risk Management note of the Consolidated Financial Statements.
| NOTES TO STATUTORY FINANCIAL STATEMENTS
===== SIDA 99 =====
Annual and Sustainability Report 2023 | Cavotec 97
NOTE 10. RELATED PARTY TRANSACTIONS
As of 31 December 2023, the company has granted no loans, advances, borrowings or guarantees in favor of member of the Board of
Directors and members of the Cavotec Management Team or parties closely related to such persons.
NOTE 11. LEGAL RISKS
As a global company with a diverse business portfolio, the Group is exposed to numerous legal risks, particularly in the areas of product liability,
competition and tax assessments. The outcome of any current or future proceedings cannot be predicted. It is therefore possible that legal or regulatory
judgments or future settlements could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation payments and could
significantly affect our revenues and earnings.
NOTE 12. FULL TIME EQUIVALENTS
The number of full-time equivalents, as well as the previous year, did not exceed 10 on an annual average basis.
NOTE 13. SUBSEQUENT EVENTS
No significant subsequent events occurred.
CAVOTEC SA
Proposed carry forward of the accumulated losses
CHF 31 December 2023 31 December 2022
Profit/(Losses) brought forward (99,309,417) (89,550,220)
Profit/(Losses) for the year (7,568,999) (9,759,197)
Total losses (106,878,419) (99,309,417)
Appropriation to general statutory reserves (retained earnings) – –
Appropriation to other reserves – –
Proposed balance to be carried forward (106,878,419) (99,309,417)
The Board of Directors’ proposal to the Annual General Meeting is that no dividend is to be paid for the 2023 financial year.
NOTES TO STATUTORY FINANCIAL STATEMENTS |
===== SIDA 100 =====
98 Cavotec | Annual and Sustainability Report 2023
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.
Report of the statutory auditor
to the General Meeting of Cavotec SA
Lugano
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Cavotec SA (the Company), which comprise the income statement for the
year ended 31 December 2023, the balance sheet as at 31 December 2023 and notes to the statutory financial state-
ments, including a summary of significant accounting policies.
In our opinion, the financial statements (pages 93 to 97) comply with Swiss law and the Company’s articles of incorpo-
ration.
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 financial
statements' section of our report. We are independent of the Company in accordance with the provisions of Swiss law
and the requirements of the 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.
Our audit approach
Overview Overall materiality: CHF 0.9 mio
We tailored the scope of our audit in order to perform sufficient work to enable
us to provide an opinion on the financial statements as a whole, taking into ac-
count the structure of the Company, the accounting processes and controls,
and the industry in which the Company operates.
As key audit matter the following area of focus has been identified:
Investments valuation in subsidiary companies
Materiality
The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable
assurance that the financial statements are free from material misstatement. Misstatements may arise due to fraud or
===== SIDA 101 =====
Annual and Sustainability Report 2023 | Cavotec 99
error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall
materiality for the financial statements as a whole as set out in the table below. These, together with qualitative consider-
ations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, both individually and in aggregate, on the financial statements as a whole.
Overall materiality CHF 0.9 mio
Benchmark applied Total assets
Rationale for the materiality bench-
mark applied
We chose total assets as the benchmark because, in our view, it is the relevant
benchmark for a holding company that mainly holds investments, and it is a
generally accepted benchmark.
We agreed with the Audit Committee that we would report to them misstatements above CHF 70'000 identified during
our audit as well as any misstatements below that amount which, in our view, warranted reporting for qualitative reasons.
Audit scope
We designed our audit by determining materiality and assessing the risks of material misstatement in the financial state-
ments. In particular, we considered where subjective judgements were made; for example, in respect of significant ac-
counting estimates that involved making assumptions and considering future events that are inherently uncertain. As in
all of our audits, we also addressed the risk of management override of internal controls, including among other matters
consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the fi-
nancial statements of the current period. These matters were addressed in the context of our audit of the financial state-
ments as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Investments valuation in subsidiary companies
Key audit matter How our audit addressed the key audit matter
At 31 December 2023, the carrying value of the company's
investments amounts to CHF 86.5 million (2022: CHF 91.9
million).
The principal considerations for our determination that the
valuation of investments in subsidiary companies is a key
audit matter are the significant amount of the investments
in the balance sheet and the judgement involved in the im-
pairment assessment.
We have tested management's assessment of the recover-
ability of investments as follows:
• We compared the carrying amounts of the investments
against the underlying net assets.
• We compared the market capitalization of Cavotec SA as
at 31 December 2023 with the equity of the Company.
The procedure performed provided a sufficient basis to
conclude on the approach of investments valuation in sub-
sidiary companies.
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 financial statements, the consolidated financial statements, the remunera-
tion report and our auditor’s reports thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assur-
ance conclusion thereon.
Cavotec SA | Report of the statutory auditor to the General Meeting
===== SIDA 102 =====
100 Cavotec | Annual and Sustainability Report 2023
Cavotec SA | Report of the statutory auditor to the General Meeting
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge ob-
tained 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 financial statements
The Board of Directors is responsible for the preparation of financial statements in accordance with the provisions of
Swiss law and the Company’s articles of incorporation, and for such internal control as the Board of Directors determines
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to con-
tinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from ma-
terial 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. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic de-
cisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on EXPERTsuisse's web-
site: http://www.expertsuisse.ch/en/audit-report. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control sys-
tem that has been designed, pursuant to the instructions of the Board of Directors, for the preparation of the financial
statements.
We further confirm that the proposed carry forward of the accumulated losses complies with Swiss law and the Com-
pany’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
PricewaterhouseCoopers SA
Laura Cazzaniga
Licensed audit expert
Thomas Wallmer
Licensed audit expert
Auditor in charge
Lugano, 11 April 2024
===== SIDA 103 =====
Annual and Sustainability Report 2023 | Cavotec 101
Financial figures
Dividend yield: Dividend as a percentage
of the market price.
Dividend per share (DPS): Dividend for
the period divided by the total number of
shares outstanding.
Earnings per share: Profit/loss
attributable to equity holders of the Group
divided by the average number of shares
for the period.
Equity/asset ratio: Total equity as a
percentage of total assets.
FY: Full Year.
Leverage ratio: Senior net debt divided
by operating result before depreciation
and amortisation, adjusted for non-
recurring items.
LTM: Last Twelve Months.
Net debt: Borrowings plus other financial
liabilities, less cash and cash equivalents
and current financial investments.
Net debt/equity ratio: Net debt as a
percentage of total equity.
Return on equity (ROE): Net profit after
tax (rolling 12 months) divided by total
equity less minority interests calculated on
the average of quarterly values.
Senior net debt: All interest bearing
indebtedness that is not subordinated,
minus liquid assets.
Total equity: Shareholders’ equity
including minority interests.
Operating figures
Adjusted EBIT: EBIT excluding Non-
Recurring items.
Adjusted EBITDA: EBITDA excluding
Non-Recurring items.
Average capital employed: Total assets
less current liabilities calculated on their
average of quarterly values for the period.
Average number of employees:
Average number of employees during the
year based on hours worked. Does not
include consultancy staff.
EBIT: Operating result excluding net
interest and income tax.
EBITDA: Operating result excluding
depreciation and amortisation of PPE
and intangible assets, net interest and
income tax.
EBITDA margin: EBITDA excluding
profit from participations in joint venture/
associated companies as a percentage of
net sales.
Gross operating margin: Operating
result before depreciation and
amortisation as a percentage of the
period’s revenue from sales of goods.
Interest coverage: Operating result,
adjusted for non-recurring items divided
by net interest expenses.
Net debt/EBITDA: Net debt divided by
EBITDA.
Non-Recurring Items: any material items
which represent gains or losses arising
from: restructuring of the activities of
an entity and reversal of any provisions
for the costs of restructuring as defined
under IFRS, disposal of non-current
assets, disposal of assets associated with
discontinued operations, extraordinary
provisions and litigation.
Number of employees at year-end:
Including insourced staff and temporary
employees.
Operating cash flow: EBITDA excluding
non-cash items, capital expenditures,
divested PPE and changes in working
capital, but excluding cash flow pertaining
to restructuring.
Operating margin: Operating result
after depreciation and amortisation as a
percentage of the period’s revenue from
sales of goods.
Operating result: EBIT as stated in the
income statement.
PPE: Property, plant and equipment.
Profit before income tax margin: Profit/
loss before income tax as a percentage of
the period’s revenue from sales of goods.
Return on average capital employed
(ROACE): Net operating profit after tax
(rolling 12 months) divided by average
capital employed.
Financial definitions
FINANCIAL DEFINITIONS |
===== SIDA 104 =====
102 Cavotec | Annual and Sustainability Report 2023
The share 2023
| THE SHARE
Successful new issue of shares
The Cavotec share is listed on Nasdaq
Stockholm since 2011 in the mid-
cap segment. The company made
a successful directed issue of new
shares during the year that raised
approximately SEK 165 million (about
EUR 15.0 million). The closing price
on the last trading day of the year was
SEK 14.4 which translates to a market
capitalisation of SEK 1.5 billion.
In 2023, a total of 14.4 million shares
were traded of which 53.5% on Nasdaq
Stockholm. The daily average was in
total 14,433 shares and on Nasdaq
Stockholm 13,660 shares. The share
price increased 6.7% in 2023. Nasdaq
Stockholm, as measured by the OMXS
PI index, increased 15.5% in 2023. The
highest closing price SEK 15.85 was
paid on 7 December and the lowest price
SEK 11.95 was paid on 13 March. The
market capitalisation was SEK 1,536
million on the last trading day of the year.
Shareholders
On 31 December 2023, Cavotec had
2,019 known shareholders. Most of
the holdings, 76.6%, are in Sweden,
followed by Switzerland with 7.1%. Of
the known shareholders, the largest type
of ownership is institutional investors
and asset managers holding 64.9% of
the shares, while private individuals hold
17.8%.
Bure Equity is the single largest
shareholder with 35.2% of the share
capital and votes.
The share and share capital
Each share in Cavotec carries one
vote and all shares have equal right to
dividend. The number of shares and votes
is 106,696,030 and each share has a par
value of CHF 0.70. The share capital is
CHF 74,687,221. All of Cavotec’s shares
are denominated in SEK.
On 22 February 2023, Cavotec carried
out a directed new issue of 12,452,830
shares at a subscription price of SEK
13.25 per share, entailing raising
proceeds of approximately SEK 165
million (about EUR 15.0 million). The
purpose of the share issue was to
increase financial flexibility to support
the company to execute on its strong
order book, growth plans and in addition
strengthen the company’s financial
position by reducing net debt. The share
issue entailed a dilution of approximately
11.7% of the number of shares and
votes in Cavotec.
Dividend policy and dividend
Cavotec’s target is to distribute
dividends of approximately 30-50% of
net profits over a business cycle. Any
pay-out decision will be based on the
company’s financial position, investment
needs, acquisitions and liquidity
position.
The Board of Directors proposes to
the Annual General Meeting 2024
that no dividend be paid for the 2023
financial year.
Analyst
Cavotec is followed by the analyst listed
below. Publicly available analyst reports
on Cavotec are available on www.
introduce.se/foretag/cavotec/start/. For
further information, please contact the
analyst below.
Firm
ABG Sundal Collier (sponsored
research)
Analyst
Karl Bokvist
Karl.Bokvist@abgsc.se
Phone: +46 8 566 286 00
CAVOTEC’S TEN LARGEST SHAREHOLDERS 31 DECEMBER 2023
Owner No. of shares Capital and votes
Bure Equity 37,554,921 35.20%
Thomas von Koch 18,666,109 17.49%
Fabio Cannavale 7,583,008 7.11%
Fjärde AP-fonden (The Fourth Swedish National
Pension Fund) 6,793,710 6.37%
Nordea Funds 4,635,626 4.34%
Fondita Fund Management 2,000,000 1.87%
Patrik Tigerschiöld with family 1,598,000 1.70%
SEB Funds 1,238,245 1.16%
Eric Isaac 1,234,382 1.16%
Fredrik Palmstierna 1,216,064 1.14%
Total ten largest owners 82,520,065 77.54%
Others 24,175,965 22.46%
Total 106,696,030 100.00%
The Cavotec share
ISIN code: CH0136071542
Ticker: CCC
Investment and asset managers, 35.3%
Other institutional owners, 20.8%
Private individuals, 17.8%
Fund companies, 8.8%
Unknown, 17.3%
Sweden, 76.6%
Switzerland, 7.1%
Finland, 6.2%
Germany, 0.3%
Other, 9.7%
Owners
per country
Owners
per type
===== SIDA 105 =====
Annual and Sustainability Report 2023 | Cavotec 103
THE SHARE |
DEVELOPMENT OF THE SHARE CAPITAL
Description Date Shares Share capital (CHF)
Listing on Nasdaq Stockholm 19 October 2011 71,625,472 110,665,691
Reduction share capital 4 May 2012 71,625,472 109,237,747
Reduction share capital 23 April 2013 71,625,472 105,667,886
Reduction share capital 23 April 2014 71,625,472 102,098,025
Increase share capital 19 September 2014 78,764,272 112,306,480
Reduction share capital 22 April 2015 78,764,272 108,379,680
Reduction share capital 22 April 2016 78,764,272 106,023,600
Reduction share capital 29 March 2017 78,764,272 102,096,800
Rights issue 4 January 2019 94,471,472 120,631,296
Reduction share capital 2 June 2022 94,471,472 65,970,240
New issue 22 February 2023 106,696,030 74,687,221
Total outstanding shares 106,696,030 74,687,221
SHARE PRICE DEVELOPMENT AND VOLUME ON NASDAQ STOCKHOLM 2023
OWNERSHIP DISTRIBUTION BY SHAREHOLDING 31 DECEMBER 2023
Holding size Capital and votes Shares No. known owners Share of known owners
1-500 0.14% 153.396 1,341 66.42%
501-1,000 0.15% 155.034 194 9.61%
1,001-5,000 0.66% 703.444 289 14.31%
5,001-10,000 0.51% 538.456 68 3.37%
10,001-20,000 0.51% 544.435 35 1.73%
20,001- 88.80% 94.508.659 92 4.56%
Unknown 9.24% 10.092.606 0 0.00%
Total 100.00% 106.696.030 2,019 100.00%
0
200000
400000
600000
800000
1000000
1200000
1400000
0
2
4
6
8
10
12
14
16
18
30/12/2022 30/01/2023 28/02/2023 31/03/2023 30/04/2023 31/05/2023 30/06/2023 31/07/2023 31/08/2023 30/09/2023 31/10/2023 30/11/2023
Closing price OMXS PI Total volume
Closing price
OMXS PI
Total volume
SEK NO OF SHARES
Innehavsstorlek Aktier Kapital Röster Antal kända ägare Andel av kända ägare
1 - 500 153396 0,14% 0,14% 1341 66,42%
501 - 1 000 155034 0,15% 0,15% 194 9,61%
1 001 - 5 000 703444 0,66% 0,66% 289 14,31%
5 001 - 10 000 538456 0,51% 0,51% 68 3,37%
10 001 - 20 000 544435 0,51% 0,51% 35 1,73%
20 001 - 94508659 88,80% 88,80% 92 4,56%
Okänd innehavsstorlek 10092606 9,24% 9,24% 0 0,00%
Totalt 106696030 100,00% 100,00% 2019 100,00%
===== SIDA 106 =====
104 Cavotec | Annual and Sustainability Report 2023
Shareholder information
| SHAREHOLDER INFORMATION
Financial calendar
26 April 2024 First quarter report
25 July 2024 Second quarter report
8 November 2024 Third quarter report
21 February 2025 Fourth quarter and year-end report 2024
Week beginning 31 March 2025 Annual Report and Sustainability Report 2024
IR contact
Joakim Wahlquist, CFO
Phone +41 91 911 4010
Email investor@cavotec.com
2024 Annual General Meeting
The Annual General Meeting 2024 will take place on 4 June 2024 in Lugano, Switzerland.
Financial information
Cavotec’s annual report and quarterly reports are published in English.
They are available for download at https://ir.cavotec.com/financial-reports
Cavotec SA
Corso Elvezia 16
CH-6900 Lugano
Switzerland
+41 91 911 4010
investor@cavotec.com
cavotec.com
===== SIDA 107 =====
Annual and Sustainability Report 2023 | Cavotec 105
Cavotec’s history in brief
CAVOTEC’S HISTORY IN BRIEF |
1974
Specimas AB is registered in Sweden as a
sales agent for Italian Specimas SpA.
1976
Specimas AB is renamed Cavotec AB.
1984
Cavotec acquires Specimas SpA.
1997
Acquisition of Alfo Apparatebau in
Germany.
Opens a sales company in Singapore.
1999
Acquisition of Metool in Australia and RMS
Enrouleurs in France.
Opens a sales company in Denmark.
2002
Acquisition of Gantrex Group in Canada,
South Africa and the US.
2004
Acquisition of Fladung in Germany and
Micro-control in Norway.
2007
Merger with the British company Mooring
Systems through a reverse acquisition in a
share for share transaction.
Listing on the New Zealand Stock
Exchange.
Head office moves to Switzerland.
2008
Acquisition of Dabico Group in the US and
UK, Meyerinck in Germany and Gantrex
operations.
2011
Sales offices opened in Spain and Brazil.
Acquisition of INET Group in the US.
Listing on Nasdaq Stockholm.
2017
Cavotec confirms its leadership in
automated mooring and charging for
electric ferries with the first connection of
a battery powered vessel in Finland.
2018
Opening of new production facility in
Milan, Italy.
Launch of services offering.
2020
Launch of MoorMaster NxG, the next
generation of automated vacuum mooring.
2021
New strategy launched to focus on
cleantech for ports and industrial
applications.
2022
Divestment of the airport’s division.
2023
Focus on the transformation of Cavotec
to build a stronger company and grow
profitably.
===== SIDA 108 =====
106 Cavotec | Annual and Sustainability Report 2023
Design:
Cavotec Corporate Marketing & Communications
Photos:
Cavotec’s archive and iStockPhoto.com
Board and management’s images by Pär Olsson
For more information visit
cavotec.com
Cavotec SA is listed on Nasdaq Stockholm
===== SIDA 109 =====
cavotec.com April 2024 – X2EN – ANREP – 23
“ Our clear strategic priorities and change program
have proven effective and our financial results
and position have improved significantly in 2023.”
David Pagels, CEO