FULLTEXT DEL 1 AV 1
Kvartalsrapport Q2 2023
===== 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