===== SIDA 1 ===== Q2 2023 | Interim report January-June 2023 ===== SIDA 2 ===== Q2 2023 | Interim report January-June 2023 1 ● investor@cavotec.com Strong increase in revenues and growing profitability APRIL–JUNE 2023 • Revenues increased 44.4% to EUR 45.7 million (31.7) • EBIT amounted to EUR 1.2 million (-0.9), corresponding to an EBIT-margin of 2.6% (-3.0%) • Net result for the period was EUR -0.9 million (0.9) • Operating cash flow amounted to EUR -4.6 million (2.2) • Earnings per share basic and diluted amounted to EUR -0.009 (0.017) JANUARY–JUNE 2023 • Order backlog decreased -8.2% to EUR 140.3 million (152.8) • Revenues increased 44.3% to EUR 85.3 million (59.1) • EBIT amounted to EUR 1.5 million (-2.4), corresponding to an EBIT-margin of 1.7% (-4.1%) • Net result for the period was EUR -2.3 million (1.3) • Operating cash flow amounted to EUR -7.5 million (2.1) • Earnings per share basic and diluted amounted to EUR -0.022 (0.014) Unless otherwise stated, figures in brackets refer to the same period in the preceding year. Key events during the quarter • Cavotec made a strategic decision to expand its operations in India to drive growth and support global sourcing. • Cavotec won a major turnkey order for on-shore power worth approximately EUR 5 million. • Joakim Wahlquist officially started as CFO as of 1 May 2023. • Jörgen Ohlsson has been appointed Senior Vice President Global Operation and will be a member of the Cavotec Management Team starting from August 2023. • At the end of the quarter Cavotec agreed with the lenders to a covenant waiver for the remainder of 2023. ===== SIDA 3 ===== Q2 2023 | Interim report January-June 2023 2 ● investor@cavotec.com FINANCIAL SUMMARY * The income statement has been amended for the year 2022 to reflect discontinued operations in line with IFRS 5. Please refer to page 11 and 12 for further segmental details EUR 000’s Q223 Q222 Delta 1H23 1H22 Delta Dec 2022 Order backlog 140, 257 152,794 -8.2% 140,257 152,794 -8.2% 147,207 Revenues 45,734 31,671 44.4% 85,261 59,078 44.3% 147,849 EBITDA 2,656 580 357.9% 4,648 724 542.0% 1,631 EBITDA margin, % 5.8% 1.8% 4.0 pp 5.5% 1.2% 4.3 pp 1.1% EBIT 1,171 (942) 224.3% 1,477 (2,415) 161.2% (4,506) EBIT margin, % 2.6% -3.0% 5.6 pp 1.7% -4.1% 5.8 pp -3.0% Net profit/(loss) for the period (932) 1,627 -157.3% (2,276) 1,350 -268.7% (3,170) Operating Cash Flow (4,572) 2,168 -310.9% (7,494) 2,067 -462.6% (5,485) Full time equivalent employees 625 616 9 625 616 9 640 The KPIs below includes discontinued operations * Net profit/(loss) for the period (932) 900 -203.6% (2,276) (3,307) -31.2% (14,692) Basic and diluted earnings per share, EUR (0.009) 0.009 -200.0% (0.022) (0.035) -37.1% (0.156) Operating Cash Flow (4,572) (137) 3237.2% (7,494) (6,080) 23.3% (20,993) Net debt (23,314) (25,274) -7.8% (23,314) (25,274) -7.8% (30,328) Equity/assets ratio 34.7% 31.5% 3.2 pp 34.7% 31.5% 3.2 pp 26.2% Leverage ratio 3.73x 6.46x -2.7x 3.73x 6.46x -2.7x 12.5x ===== SIDA 4 ===== Q2 2023 | Interim report January-June 2023 3 ● investor@cavotec.com Comment from the CEO Strong revenue and continued positive EBIT development In the second quarter we reported revenues of EUR 45.7 million, an increase of 16% compared to the first quarter, and an increase of 44% compared to the same period last year. Revenues in Ports & Maritime increased by 65.3%, to EUR 28.8 million and revenues in Industry increased by 18.9%, to EUR 17.0 million compared to the same period last year. Due to a combination of an uptick in deliveries and delays in order intake, our order backlog decreased to EUR 140.3 million, an -8% reduction compared to the same period last year. The slightly lower order intake is explained by delayed orders in our Ports & Maritime and Industry businesses with customers carefully evaluating the macroeconomic environment. During this and recent quarters, we have improved our delivery performance and lead-times. Our total installed base continues to grow and this provides considerable opportunities for our Services business which performed strongly in the second quarter. Due to increased volume and improved profitability of new orders, we continued to build on the positive EBIT performance in the first quarter. EBIT in the second quarter amounted to EUR 1.2 million, corresponding to an EBIT improvement of EUR 0.9 million versus the first quarter of 2023 and EUR 2.1 million compared to the same period last year. We remain fully focused on deriving more profitability from our existing order book, while at the same time taking actions to win new orders with improved margins. We are starting to see the benefits and effects of the changes we have introduced, but there is still much we want to do. Further improvements to our profitability will come after we have delivered the portion of our Ports & Maritime orderbook which was booked before the global supply chain disruptions and emergence of inflationary pressure. It will still take some time for those orders to fully unwind due to long delivery schedules. However, we are actively identifying ways to offset higher costs with the introduction of cost optimization programs. Finally, similar to many companies, we were forced to increase our prices to counter the impact of higher costs. Our pricing now better reflects the value we deliver to our customers. These effects combined are set to contribute to a steady improvement in profitability throughout the year. On the back of the above and encouraging EBIT improvement and revenue growth, we agreed at the end of the quarter with our lenders to a covenant waiver for the remainder of 2023. We have recently developed a strategy focused on production and sourcing to ensure that Cavotec also in the future is well equipped to continue delivering high-quality products at competitive prices going forward. On June 23rd Jörgen Ohlsson was appointed Senior Vice President Global Operations effective August 21st, 2023. With his strong track-record of driving transformation projects and implementing processes aimed at optimizing site production and global sourcing costs reduction programs, Jörgen is an ideal addition to the team. I have asked Jörgen to focus initially on setting up a global sourcing function with commodity managers to build an efficient and scalable supply chain organization across all Cavotec sites. I believe this will play a key role in building “One Cavotec” from an operations and procurement standpoint. Furthermore, I am delighted to share the exciting news that Cavotec has decided to expand its operations into India by opening a new scalable facility, marking a pivotal step towards our vision of growth and customer-centricity. The expansion, which will not involve major investment, is required to fuel our growth, and will focus on serving our customers primarily located in India and Southeast Asia. By capitalizing on India’s robust manufacturing capabilities and cost-effective resources, we expect to support all our operations globally with new and competitive suppliers from the region as well as enabling us to increase our overall capacity. I have now completed my first year as Cavotec CEO, during these 12 months I have spent considerable time meeting our valued customers and partners and visiting our offices and operations around the world. My most important observation from this time is that demand for our solutions is strong. I am confident that we are well positioned to capture the technological shift to sustainable electrical solutions. I am also proud of the passion I have seen in our people, and of the work that has been put in to get Cavotec back on a profitable track. Most of all, I am excited at the prospect of what we are yet to achieve, and I am certain that Cavotec will continue to grow, and to grow profitably. Stockholm, July 28, 2023 David Pagels Chief Executive Officer ===== SIDA 5 ===== Q2 2023 | Interim report January-June 2023 4 ● investor@cavotec.com ORDER BACKLOG AND REVENUE EUR 000s Q223 Q222 1H23 1H22 Ports & Maritime Industry Total Ports & Maritime Industry Total Ports & Maritime Industry Total Ports & Maritime Industry Total Revenue from sales of goods and services 28,764 16,970 45,734 17,398 14,273 31,671 52,400 32,861 85,261 29,748 29,330 59,078 Increase/(decrease) 11,366 2,697 14,063 (4,394) (1,480) (5,874) 22,652 3,531 26,183 (243) (4,184) (3,941) Percentage change 65.3% 18.9% 44.4% 33.8% 11.5% 22.8% 76.1% 12.0% 44.3% -0.81% 16.6% 7.2% Of which - Volumes and prices 66.3% 19.9% 45.4% 34.8% 12.5% 20.0% 77.8% 14.6% 46.4% -4.3% 14.8% 4.5% - Currency effects -1.0% -1.0% -1.0% -1.0% -1.0% 2.8% -1.7% -2.6% -2.1% 3.5% 1.8% 2.7% DIVISIONS Revenue EUR 000s Q223 Q222 Change % 1H23 1H22 Change % LTM Rolling FY22 Change % Ports & Maritime 28,764 17,398 65.3% 52,400 29,748 76.1% 110,911 88,259 25.7% Industry 16,970 14,273 18.9% 32,861 29,330 12.0% 63,121 59,590 5.9% Total 45,734 31,671 44.4% 85,261 59,078 44.3% 174,032 147,849 17.7% Order Backlog EUR 000s 1H23 1H22 Change % Q123 Change % FY22 Change % Ports & Maritime 108,755 121,963 -10.8% 120,357 -9.6% 116,916 -7.0% Industry 31,502 30,831 2.2% 29,264 7.6% 30,291 4.0% Total 140,257 152,794 -8.2% 149,621 -6.3% 147,207 -4.7% ===== SIDA 6 ===== Q2 2023 | Interim report January-June 2023 5 ● investor@cavotec.com Financial Review APRIL-JUNE 2023 Starting January 2023, Cavotec SA reports its business in two segments: Ports & Maritime and Industry. Revenue and Order Backlog Order backlog decreased -6.3% compared to Q123 to EUR 140.3 million. Revenue increased 44.4% to EUR 45.7 million (31.7) and an increase of 15.7% compared to Q123 (39.5). Operating Result (EBIT) EBIT amounted to EUR 1.2 million (-0.9), corresponding to an EBIT margin of 2.6% (-3.0%). We aim to improve profitability from existing orders, while winning new orders at better margins. We see benefits from recent changes, but more improvements are planned. Despite a number of challenges, our profitability is set to improve as we fulfill orders that were placed prior to recent market disruption. We started offsetting the higher costs through cost optimization and price adjustments, resulting in profitable growth. Profit for the period and earnings per share Finance costs amounted to EUR -0.8 million (-0.4). Currency exchange differences amounted to EUR 0.1 million (3.3). Income tax expenses for the quarter amounted to EUR -1.4 million (-0.3). Net result for the period was EUR -0.9 million (1.6). Earnings per share basic and diluted amounted to EUR -0.009 (0.017). Cash flow Operating cash flow amounted to EUR -4.6 million (2.2) in the quarter. Inventory levels at the end of Q2 decreased by -0.9 million (6.9) compared to the end of Q123. Receivables and contract assets decreased EUR -1.2 million (0.9), due to improved collections. Payables and contract liabilities decreased by -6.2 million (11.9). Investing activities amounted to a cash outflow of EUR -0.2 million (0.1), mainly due to investments in properties, plants, and equipment. Cash flow from financing activities was EUR -3.8 million (2.5), mainly due to the repayment of the revolving credit facility and lease payments. Cash and cash equivalents amounted to EUR 8.7 million as of 30 June 2023 (10.0). JANUARY-JUNE 2023 Revenue and Order Backlog Order backlog decreased -4.7% compared to December 2022. Revenue increased 44.3% to EUR 85.3 million (59.1). Operating Result (EBIT) EBIT amounted to EUR 1.5 million (-2.4), corresponding to an EBIT margin of 1.7% (-4.1%). Over the first six months, profitability was influenced by a combination of factors. In the beginning of the year, we faced margin challenges due to unforeseen supply chain disruptions and cost increases stemming from past orders with low pricing. During the second quarter new orders with better margins and cost optimization programs led to increased profitability. Employees The number of full-time equivalent employees in Cavotec was 625 as of 30 June 2023 (616). Profit for the period and earnings per share Finance costs amounted to EUR -1.8 million (-0.5). Currency exchange differences amounted to EUR 0.1 million (4.4). Income tax expenses for the quarter amounted to EUR -2.0 million (-0.1). Net result for the period was EUR -2.3 million (1.3). Earnings per share basic and diluted amounted to EUR -0.022 (0.014). Cash flow Operating cash flow amounted to EUR -7.5 million (2.1) in 1H23. Inventory levels at the end of 1H23 increased by 0.4 million (11.3) compared to the end of last year. Receivables and contract assets decreased EUR -5.1 million (-2.9), due to improved collections. Payables and contract liabilities decreased by -12.7 million (15.3). Investing activities amounted to a cash outflow of EUR -0.3 million (-0.5), mainly due to investments in properties, plants, and equipment. Cash flow from financing activities was EUR 6.4 million (5.8), mainly due to the equity increase, partially offset by repayment of the revolving credit facility and lease payments. - 5 10 15 20 25 30 35 40 45 50 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Millions EUR Quarterly Revenues Cavotec -6,00% -4,00% -2,00% 0,00% 2,00% 4,00% (2,0) (1,5) (1,0) (0,5) 0.0 0,5 1,0 1,5 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Millions EUR Quarterly Operating Result Cavotec Ports & Maritime Industry Operating Result Cavotec Operating Result Cavotec, % ===== SIDA 7 ===== Q2 2023 | Interim report January-June 2023 6 ● investor@cavotec.com Ports & Maritime Ports & Maritime´s order backlog decreased by -9.6% compared to the previous quarter and by -10.8% compared to the same period last year, to EUR 108.8 million. The decrease was due to the combination of higher revenues and timing delays on key orders. Interest in Cavotec solutions continues to be strong and to grow, particularly in the shore power market, both for shore-side solutions and vessel retrofits, and due to the close collaboration with crane OEMs for motorized cable reels. Cavotec registered an increasingly high level of activity from customers in the European Union looking to prepare their ports in advance of regulatory changes. A growing number of port authorities, terminal operators, and shipping lines around the world are investing in shore power to increase the sustainability of their operations, even without facing regulatory pressure to do so. In the quarter, revenues increased by 65.3% compared to the same quarter last year, to EUR 28.8 million (17.4 million). Compared to the same half year, revenues increased by 76.1 % to EUR 52.4 million (29.7 million). This increase was mainly driven by deliveries of On- Ship Shore Power products from our factory in China and On-Shore Shore Power, MoorMaster and motorized cable reel deliveries from Italy, as well as a strong performance by the Services business. Industry Industry´s order backlog increased by 7.6% compared to the previous quarter to EUR 31.5 million and increased by 2.2% compared to the same period in the previous year (EUR 30.8 million). This increase was mainly due to growth in project orders received for motorized cable reel solutions, particularly in the EMEA region. Revenues increased 18.9% to EUR 17.0 million compared to the same quarter last year (EUR 14.3 million). Compared to the same half year, revenues increased by 12.0% to 32.9 million (29.3 million). Revenue growth came mainly from deliveries of motorized cable reel systems and spring reels and collectors, especially in EMEA and the Americas. -0,3% -0,3% -0,2% -0,2% -0,1% -0,1% 0,0% 0,1% 0,1% 0,2% (3,0) (2,5) (2,0) (1,5) (1,0) (0,5) 0.0 0,5 1,0 1,5 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Millions EUR Operating Result Ports & Maritime -0,15% -0,10% -0,05% 0,00% 0,05% 0,10% (2,0) (1,5) (1,0) (0,5) 0,0 0,5 1,0 1,5 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Millions EUR Operating Result Industry Operating Result Industry Operating Result Industry, % Operating Result P&M Operating Result P&M, % ===== SIDA 8 ===== Q2 2023 | Interim report January-June 2023 7 ● investor@cavotec.com CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME EUR 000s Unaudited three months 30 Jun, 2023 Unaudited three months 30 Jun, 2022* Unaudited six months 30 Jun, 2023 Unaudited six months 30 Jun, 2022 Audited year 31 Dec, 2022 Revenue from sales of goods and services 45,734 31,671 85,261 59,078 147,849 Other income 681 587 1,094 1,100 1,776 Cost of materials (25,194) (16,579) (46,774) (30,582) (80,911) Employee benefit costs (13,239) (10,783) (25,266) (21,590) (47,807) Operating expenses (5,326) (4,315) (9,667) (7,282) (19,276) Gross Operating Result 2,656 580 4,648 724 1,631 Depreciation and amortisation (668) (769) (1,574) (1,548) (2,906) Depreciation of right-of-use of leased asset (817) (753) (1,597) (1,590) (3,222) Impairment losses - - - - (9) Operating Result 1,171 (942) 1,477 (2,415) (4,506) Interest income 10 - 7 - 108 Interest expenses (807) (438) (1,844) (514) (1,354) Currency exchange differences – net 72 3,324 113 4,390 5,471 Other financial item (18) - (32) - - Profit / (loss) before income tax 428 1,944 (279) 1,462 (281) Income taxes (1,360) (317) (1,997) (113) (2,890) Profit / (loss) for the period, continuing operations (932) 1,627 (2,276) 1,350 (3,170) Profit / (loss) for the period, discontinued operations - (727) - (4,657) (11,522) Profit / (loss) for the period (932) 900 (2,276) (3,307) (14,692) Other comprehensive income: Remeasurements of post-employment benefit obligations continued operations (1) (14) 3 12 507 Remeasurements of post-employment benefit obligations discontinued operations - (11) - (16) 193 Items that will not be reclassified to profit or loss (1) (25) 3 (4) 700 Currency translation differences (881) (3,026) (1,410) (3,567) (8,364) Currency translation differences of discontinued operations - (629) - (768) (155) Items that may be subsequently reclassified to profit / (loss) (881) (3,655) (1,410) (4,334) (8,519) Other comprehensive income for the period, net of tax (882) (3,680) (1,407) (4,338) (7,819) Total comprehensive income for the period (1,814) (2,779) (3,683) (7,645) (22,511) Total comprehensive income attributable to: Equity holders of the Group (1,814) (2,779) (3,683) (7,645) (22,511) Non-controlling interest - 1 - (2) (29) Total (1,814) (2,778) (3,683) (7,643) (22,540) Profit / (loss) attributed to: Equity holders of the Group continued operations (932) 1,627 (2,276) 1,350 (3,170) Equity holders of the Group discontinued operations - (727) - (4,657) (11,522) Total (932) 900 (2,276) (3,307) (14,692) Basic and diluted earnings per share from continuing operations attributed to the equity holders of the Group (0.009) 0.017 (0.022) 0.014 (0.034) Basic and diluted earnings per share from discontinued operations attributed to the equity holders of the Group - (0.008) - (0.049) (0.122) Basic and diluted earnings per share attributed to the equity holders of the Group (0.009) 0.009 (0.022) (0.035) (0.156) Average number of shares 108,633,137 94,243,200 103,404,324 94,243,200 94,243,200 ===== SIDA 9 ===== Q2 2023 | Interim report January-June 2023 8 ● investor@cavotec.com CONSOLIDATED BALANCE SHEET EUR 000s Unaudited 30 Jun, 2023 Unaudited 30 Jun, 2022 Audited 31 Dec, 2022 Assets Current assets Cash and cash equivalents 8,664 10,032 9,625 Trade receivables 27,926 23,239 33,315 Contract assets 1,750 670 1,171 Tax assets 3,566 2,150 6,399 Other current receivables 8,027 4,762 6,256 Inventories 42,766 42,211 43,002 Assets held for sale 2,084 28,689 2,320 Total current assets 94,783 111,754 102,088 Non-current assets Property, plant and equipment 5,313 6,385 5,941 Right-of-use of leased assets 11,965 13,648 13,213 Intangible assets 38,182 39,094 38,920 Non-current financial assets 155 38 106 Deferred tax assets 6,269 9,154 6,201 Other non-current receivables 1,085 7,740 1,215 Total non-current assets 62,969 76,059 65,597 Total assets 157,752 187,813 167,685 Equity and Liabilities Current liabilities Current financial liabilities - (3,827) (4,914) Current lease liabilities (2,605) (2,709) (2,687) Trade payables (29,805) (46,716) (36,126) Contract liabilities (21,792) (8,238) (28,125) Tax liabilities (2,230) (737) (3,101) Provision for risk and charges, current (2,161) (2,660) (2,032) Other current liabilities (12,513) (8,061) (11,906) Liabilities directly associated with assets classified as held for sale - (16,948) - Total current liabilities (71,106) (89,896) (88,891) Non-current liabilities Non-current financial liabilities (19,302) (17,030) (21,172) Non-current lease liabilities (9,374) (10,780) (10,353) Deferred tax liabilities (1,129) (2,234) (1,100) Other non-current liabilities (174) (59) (461) Provision for risk and charges, non-current (1,427) (7,360) (1,357) Employee benefit obligation (541) (1,294) (501) Total non-current liabilities (31,947) (38,756) (34,944) Total liabilities (103,053) (128,652) (123,835) Equity Share Capital (54,131) (100,169) (45,288) Reserves (55,914) (646) (51,633) Retained earnings 55,346 41,685 53,071 Equity attributable to owners of the parent (54,699) (59,130) (43,850) Non-controlling interests - (31) - Total equity (54,699) (59,161) (43,850) Total equity and liabilities (157,752) (187,813) (167,685) ===== SIDA 10 ===== Q2 2023 | Interim report January-June 2023 9 ● investor@cavotec.com CONSOLIDATED STATEMENT OF CHANGES IN EQUITY EUR 000s Share Capital Reserves Retained earnings Equity related to owners of the parent Non- controlling interest Total equity Unaudited Balance as at 1 January 2022 (100,169) (4,833) 38,379 (66,623) (29) (66,652) (Profit) / Loss for the period - - 3,307 3,307 - 3,307 Currency translation differences - 4,334 - 4,334 (2) 4,334 Remeasurements of post-employment benefit obligations - 4 - 4 - 4 Total comprehensive income and expenses - 4,338 3,307 7,645 (2) 7,643 Employees share scheme - (152) - (152) - (152) Transactions with shareholders - (152) - (152) - (152) Balance as at 30 June 2022 (100,169) (647) 41,686 (59,130) (31) (59,161) Audited Balance as at 1 January 2022 (100,169) (4,833) 38,379 (66,623) (29) (66,652) (Profit) / Loss for the period - - 14,692 14,692 29 14,721 Currency translation differences - 8,519 - 8,519 - 8,519 Remeasurements of post-employment benefit obligations - (700) - (700) - (700) Total comprehensive income and expenses - 7,819 14,692 22,511 29 22,540 Employees share scheme - 262 - 262 - 262 Share Premium Reserve 54,881 (54,881) - - - - Transactions with shareholders 54,881 (54,619) - 262 - 262 Balance as at 31 December 2022 (45,288) (51,633) 53,071 (43,850) - (43,850) Unaudited Balance as at 1 January 2023 (45,288) (51,633) 53,071 (43,850) - (43,850) (Profit) / Loss for the period - - 2,276 2,276 - 2,276 Currency translation differences - 1,410 - 1,410 - 1,410 Remeasurements of post-employment benefit obligations - (3) - (3) - (3) Total comprehensive income and expenses - 1,407 2,276 3,683 - 3,683 Employees share scheme - (93) - (93) - (93) Capital increase (8,843) - - (8,843) - (8,843) Share Premium Reserve - (5,595) - (5,595) - (5,595) Transactions with shareholders (8,843) (5,688) - (14,531) - (14,531) Balance as at 30 June 2023 (54,131) (55,914) 55,346 (54,699) - (54,699) ===== SIDA 11 ===== Q2 2023 | Interim report January-June 2023 10 ● investor@cavotec.com CONSOLIDATED STATEMENT OF CASH FLOWS EUR 000s Unaudited three months 30 Jun, 2023 Unaudited three months 30 Jun, 2022 Unaudited six months 30 Jun, 2023 Unaudited six months 30 Jun, 2022 Audited year 31 Dec, 2022 Profit / (loss) for the period (932) 900 (2,276) (3,307) (14,692) Loss from discontinued operations, net of income taxes - (727) - (4,657) (11,522) Adjustments for: Net interest expenses 798 438 1,837 513 1,246 Current taxes 1,513 509 2,025 879 2,709 Depreciation and amortization 668 733 1,574 1,478 2,906 Depreciation of right-of-use of leased assets 817 753 1,597 1,590 3,222 Impairment losses - 36 - 71 9 Deferred tax (153) (192) (28) (766) 181 Provision for risks and charges 210 686 429 707 (827) Capital (gain) or loss on assets - (3) 2 (4) - Other items not involving cash flows (1,850) (3,634) (1,749) (4,597) (4,907) Interest paid (619) (42) (1,736) (111) (945) Taxes (paid) / received (1,240) (1,100) (63) (2,509) (6,225) 144 (1,816) 3,888 (2,750) (2,631) Cash flow before changes in working capital (788) (189) 1,612 (1,400) (5,802) Impact of changes in working capital: Inventories 980 (6,881) (436) (11,251) (12,960) Trade receivables and contract assets 1,173 (920) 5,060 2,885 (8,784) Other current receivables (504) (987) (1,772) (1,546) (2,613) Trade payables and contract liabilities (6,219) 11,890 (12,655) 15,265 23,161 Other current liabilities 785 (745) 696 (1,886) 1,513 Impact of changes involving working capital (3,783) 2,357 (9,106) 3,467 317 Net cash inflow / (outflow) from operating activities from continued operations (4,572) 2,168 (7,494) 2,067 (5,485) Net cash inflow / (outflow) from operating activities from discontinued operations - (2,305) - (8,147) (15,508) Net cash inflow / (outflow) from operating activities (4,572) (137) (7,494) (6,080) (20,993) Financial activities: Increase of equity capital - - 14,438 - - Net changes in loans and borrowings (2,649) 3,659 (6,618) 7,354 12,257 Repayment of lease liabilities (1,154) (1,214) (1,451) (1,572) (3,073) Net cash inflow / (outflow) from financial activities from continued operations (3,803) 2,445 6,369 5,782 9,184 Net cash inflow / (outflow) from financial activities from discontinued operations - (388) - (754) (907) Net cash inflow / (outflow) from financial activities (3,803) 2,057 6,369 5,028 8,277 Investing activities: Investments in property, plant and equipment (178) (276) (276) (389) (1,183) Investments in intangible assets - (381) (2) (883) (1,399) (Increase)/Decrease of non-current financial asset (51) (5) (51) (18) (50) Disposal of assets - 811 - 812 1,142 Net cash inflow / (outflow) from investing activities from continued operations (229) 149 (329) (478) (1,490) Net cash inflow / (outflow) from investing activities from discontinued operations - 2 - (9) 9,679 Net cash inflow / (outflow) from investing activities (229) 152 (329) (487) 8,189 Cash at the beginning of the period 16,543 8,669 9,625 12,230 12,230 Cash flow for the period from continued operations (8,604) 4,772 (1,454) 7,380 2,209 Cash flow for the period from discontinued operations - (2,700) - (8,919) (6,736) Cash flow for the period (8,603) 2,072 (1,454) (1,539) (4,527) Currency exchange differences 725 (709) 493 (659) 1,922 Cash at the end of the period 8,664 10,032 8,664 10,032 9,625 ===== SIDA 12 ===== Q2 2023 | Interim report January-June 2023 11 ● investor@cavotec.com 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. 30 June 2023 EUR 000s Ports & Maritime Industry Total Revenue from external customer Timing of revenue recognition At a point in time 52,325 32,861 85,186 Over time 75 - 75 Total 52,400 32,861 85,261 30 June 2022 EUR 000s Ports & Maritime Industry Total Revenue from external customer Timing of revenue recognition At a point in time 33,068 29,330 62,398 Over time (3,320) - (3,320) Total 29,748 29,330 59,078 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 30 June 2023 EUR 000s AMER EMEA APAC Total Ports & Maritime 7,628 21,663 23,109 52,400 Industry 2,605 23,232 7,024 32,861 Total 10,233 44,895 30,133 85,261 30 June 2022 EUR 000s AMER EMEA APAC Total Ports & Maritime 3,780 10,913 15,125 29,748 Industry 1,891 21,076 6,363 29,330 Total 5,601 31,989 21,488 59,078 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 ===== SIDA 13 ===== Q2 2023 | Interim report January-June 2023 12 ● investor@cavotec.com SEGMENT INFORMATION EUR 000s Ports & Maritime Industry Other reconciling items Total Unaudited Three months ended 30 June 2023 Revenue from sales of goods and services 28,764 16,970 - 45,734 Other income 473 209 - 681 Cost of materials and operating expenses before depreciation and amortization (26,459) (16,001) (1,299) (43,759) Gross Operating Result (EBITDA) 2,777 1,178 (1,299) 2,656 Unaudited Three months ended 30 June 2022 Revenue from sales of goods and services 17,398 14,273 - 31,671 Other income 414 173 - 587 Cost of materials and operating expenses before depreciation and amortization (17,406) (12,994) (1,278) (31,678) Gross Operating Result (EBITDA) 406 1,453 (1,278) 580 Unaudited Six months ended 30 June 2023 Revenue from sales of goods and services 52,400 32,861 - 85,261 Other income 628 467 - 1,094 Cost of materials and operating expenses before depreciation and amortization (48,352) (30,858) (2,497) (81,707) Gross Operating Result (EBITDA) 4,675 2,470 (2,497) 4,648 Unaudited Six months ended 30 June 2022 Revenue from sales of goods and services 29,748 29,330 - 59,078 Other income 689 411 - 1,100 Cost of materials and operating expenses before depreciation and amortization (31,120) (25,721) (2,613) (59,455) Gross Operating Result (EBITDA) (683) 4,020 (2,613) 724 Audited Year ended 31 December 2022 Revenue from sales of goods and services 88,259 59,590 - 147,849 Other income 830 946 - 1,776 Cost of materials and operating expenses before depreciation and amortization (89,026) (54,294) (4,673) (147,994) Gross Operating Result (EBITDA) 61 6,243 (4,673) 1,631 ===== SIDA 14 ===== Q2 2023 | Interim report January-June 2023 13 ● investor@cavotec.com PARENT COMPANY – CONDENSED STATEMENT OF COMPREHENSIVE INCOME CAVOTEC SA EUR 000s Unaudited three months 30 Jun, 2023 Unaudited three months 30 Jun, 2022 Unaudited six months 30 Jun, 2023 Unaudited six months 30 Jun, 2022 Audited year 31 Dec, 2022 Dividend - - - Other income 1,508 524 2,060 1.092 1,104 Employee benefit costs (261) (228) (612) (413) (1,481) Operating expenses (760) (1,411) (1,395) (1,998) (7,393) Operating Result 487 (1,115) 55 (1,319) (7,770) Interest expenses – net (355) (92) (997) (103) (319) Currency exchange differences – net 27 (14) 83 (18) (29) Other financial items (18) - (37) - - Write down on investments - - - - 3,776 Profit / (Loss) for the period 143 (1,221) (898) (1,439) (4,342) Income taxes (5) (1) (6) (8) (87) Profit / (Loss) for the period 138 (1,222) (904) (1,447) (4,429) Other comprehensive income: Actuarial gain (loss) - - - - (22) Total comprehensive income for the period 138 (1,222) (904) (1,447) (4,451) PARENT COMPANY – CONDENSED BALANCE SHEET CAVOTEC SA EUR 000s Unaudited six months 30 Jun, 2023 Unaudited six months 30 Jun, 2022 Audited 31 Dec, 2022 Assets Current assets Cash and cash equivalents (681) (203) 166 Trade receivables 1,794 294 1,136 Tax assets 20 66 85 Other current receivables 1.829 1,442 13,664 Total current assets 2,962 1,599 15,051 Non-current assets: Investment in subsidiary companies 93,365 91,106 93,365 Deferred tax assets 68 76 68 Total non-current assets 93,433 91,183 93,433 Total assets 96,395 92,782 108,484 Equity and Liabilities Current liabilities Bank overdraft - (27,019) (1,081) Current financial liabilities - (2,955) (2,955) Trade payables (1.669) (1,396) (3,647) Other current liabilities (8,649) (49) (16,669) Total current liabilities (10,318) (31,420) (24,352) Non-current liabilities: Provision for risks and charges – non-current - (88) - Long-term financial debt (30,599) (18,000) (42,045) Other non-current liabilities (18) (39) (14) Total non-current liabilities (30,617) (18,126) (42,059) Total liabilities (40,935) (49,547) (66,411) Total equity (55,460) (43,234) (42,073) Total equity and liabilities (96,395) (92,782) (108,484) ===== SIDA 15 ===== Q2 2023 | Interim report January-June 2023 14 ● investor@cavotec.com General information Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonization of ports and industrial applications worldwide. Backed by more than 40 years of experience, our systems ensure safe, efficient, and sustainable operations for a wide variety of customers and applications worldwide. 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, A ccountability, Performance and Teamwork. Cavotec’s personnel represent many 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 inc orporated and domiciled in Switzerland and listed on Nasdaq Stockholm Mid Cap. These unaudited Financial Statements have been approved by the Board of Directors for publication on 27 July 2023. Basis of preparation of Financial Statements This quarterly report was prepared in accordance with IFRS, applying IAS 34 Interim Financial Reporting. The same accounting and valuation policies were applied in the most recent annual report. The amendments to the standards that became applicable for th e current reporting period did not have an impact on Cavotec accounts. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended in December 202 2. The preparation of quarterly financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income , and expenses. Actual results may differ from these estimates. Segment information Operating segments have been determined based on the Group Management structure in place and on the management information and used by the Chief Operating Decision Maker (CODM) to make strategic decisions. On July 29, 2022, Cavotec completed the divestment of its Airports business. As a result of the divestment process , the Group has changed the organizational structure and reporting to the CODM. The Segment information presented in Q 223 report reflects the two new operating segments: 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. Noteworthy risks and uncertainties Cavotec’s significant risks and uncertainties are divided into three categories, market, credit, and liquidity risks. In these categories, there are both risks due t o political and macroeconomic trends and specific risks directly linked to business carried out by the Group. Market risk includes currency and interest rate risk. Credit risk includes the risk of managing our customers and other receivables while liquidit y risk includes the management of cash in a diverse, global group. Key events during the quarter Cavotec made a strategic decision to expand its operations in India to drive growth and support global sourcing. Cavotec won a major turnkey order for on-shore power worth approximately EUR 5 million. Joakim Wahlquist officially started as CFO as of 1 May 2023. Jörgen Ohlsson has been appointed Senior Vice President Global Operation and will be a member of the Cavotec Management Team starting from August 2023. At the end of the quarter Cavotec agreed with the lenders to a covenant waiver for the remainder of 2023. Key events after the quarter There were no key events after the end of the quarter. Forward looking statement Some statements in this report are forward -looking, and the actual outcome could be materially different. In addition to the factors explicitly discussed, other factors could have a material effect on the actual outcome. Such factors include, but are not l imited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of competing products and their pricing, product development, commercialisation and technological difficulties, interruptions in s upply, and major customer credit losses. Financial calendar November 10, 2023: Q323 Report February 23, 2023: Q423 Report Webcast A webcast - in English – will be held on 28 July 2023 at 10:00 CEST. CEO David Pagels and CFO Joakim Wahlquist will present the Quarterly Report. If you wish to participate via webcast, please use the link below. Via the webcast you may submit written questions. https://ir.financialhearings.com/cavotec-q2-2023 If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. https://conference.financialhearings.com/teleconference/?id=2001423 Quarterly Reports on www.cavotec.com The full report for the period January-June 2023 and previous quarterly and full year reports are available at: http://ir.cavotec.com/financial-reports Analysts & Media Joakim Wahlquist – Group CFO Mobile: +46 70 403 47 86 – Email: joakim.wahlquist@cavotec.com This is information that Cavotec SA is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on 28 July 2023. ===== SIDA 16 ===== Cavotec SA Via G.B. Pioda 14 CH-6900 Lugano, Switzerland +41 91 911 40 10 cavotec.com investor@cavotec.com