FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2024
===== SIDA 1 ===== INTERIM REPORT JANUARY–SEPTEMBER 2024 Q3 Strengthened profitability JULY–SEPTEMBER 2024 • Order intake decreased -6.0% to EUR 36.1 million (38.5) • Revenue increased 5.1% to EUR 44.1 million (42.0) • EBIT increased 76.3% to EUR 3.0 million (1.7) and the EBIT margin improved to 6.8% (4.1%) • Net result for the period increased to EUR 1.0 million (0.1) • Operating cash flow decreased to EUR -1.1 million (4.3) • Earnings per share, basic and diluted, increased to EUR 0.010 (0.001) JANUARY–SEPTEMBER 2024 • Order intake decreased -0.3% to EUR 116.3 million (116.7) • Order backlog decreased -19.1% to EUR 110.4 million (136.5) • Revenue increased 1.8% to EUR 129.5 million (127.2) • EBIT improved 129.9% to EUR 7.3 million (3.2) and the EBIT margin increased to 5.6% (2.5%) • Net result for the period increased to EUR 2.2 million (-2.2) • Operating cash flow improved to EUR 3.9 million (-3.2) • Earnings per share, basic and diluted, increased to EUR 0.021 (-0.021) • Net debt decreased to EUR -15.3 million from EUR -18.6 million at year-end 2023 and the leverage ratio improved to 0.85x from 1.29x KEY EVENTS DURING THE THIRD QUARTER • New production facility in India inaugurated. KEY EVENTS AFTER THE THIRD QUARTER • Two shore power orders for Mediterranean ports signed, worth a total of EUR 6.5 million. FINANCIAL SUMMARY EUR 000s Q324 Q323 Change 9M24 9M23 Change LTM 2023 Change Order intake 36,143 38,461 -6.0% 116,326 116,673 -0.3% 157,007 157,354 -0.2% Order backlog 110,381 136,510 -19.1% 110,381 136,510 -19.1% 110,381 123,562 -10.7% Revenue 44,092 41,966 5.1% 129,545 127,227 1.8% 183’052 180,734 1.3% EBITDA 4,438 3,143 41.2% 11,468 7,791 47.2% 18’081 14,404 25.5% EBITDA margin 10.1% 7.5% 2.6pp 8.9% 6.1% 2.8pp 9.9% 8.0% 1.9pp EBIT (operating result) 3,007 1,706 76.3% 7,318 3,183 129.9% 11’362 7,227 57.2% EBIT margin 6.8% 4.1% 2.7pp 5.6% 2.5% 3.1pp 6.2% 4.0% 2.2pp Net profit/loss for the period 1,025 104 885.6% 2,207 (2,172) 201.6% 4,559 180 2,432.8% Operating cash flow (1,091) 4,279 -125.5% 3,918 (3,214) 221.9% 9,065 1,933 369.0% Basic and diluted EPS, EUR 0.010 0.001 900.0% 0.021 (0.021) 200.0% 0.044 0.002 2,100% Net debt (15,336) (21,423) -28.4% (15,336) (21,423) -28.4% (15,336) (18,638) -17.7% Equity/assets ratio 38.8% 33.3% 5.5pp 38.8% 33.3% 5.5pp 38.8% 36.0% 2.8pp Leverage ratio 0.85x 2.68x -1.83x 0.85x 2.68x -1.83x 0.85x 1.29x -0.44x ===== SIDA 2 ===== Q3 2024 | Interim Report January–September 2024 ● cavotec.com 2 Comment from the CEO We see good opportunities to continue growing our business and strengthening profitability The improved profitability demonstrates that we are on the right track to build a stronger Cavotec. The markets we target are to an increasing extent driven by new regulations in the environmental field and the urgent need to reduce emissions. This, combined with our ability to further enhance our offer, gives us good momentum to continue growing with both new and existing customers. Revenue increased 5.1% in the quarter to EUR 44.1 million, mainly as a result of a strong quarter for the Industry segment with good sales of radio remote controls and services. We continue to gain positive effects from our ongoing change programs and increased cost control as well as improved purchasing procedures. EBIT increased 76.3% to EUR 3.0 million with an EBIT margin that improved 2.7 percentage points to 6.8%. A large portion of Cavotec’s business is project-driven and order intake can fluctuate between quarters depending on timing of the order signing. Although order intake declined slightly in the quarter, the underlying market demand for our climate-friendly solutions remains good, driven by the customers’ need to increase efficiency as well as to decarbonise and adapt to new environmental regulations. Operating cash flow was negative in the quarter, negatively affected by increased working capital. This is due to lower customer pre-payments and increased receivables. The development of our working capital and the further strengthening of our financial position remain key focus areas. Growing role as system integrator A key part of our change programs that we initiated in 2022/2023 is the increased focus on our service offering that we developed and adapted to the needs of the market. This has been a successful achievement and we now see that we can take another position in the value chain by increasingly becoming system integrators. In the long term, our growing service business is expected to have a leveling effect on sales development, which today is strongly project-related and can thus fluctuate between quarters. Our change programs also include an increased focus on innovation and product development. This has led to us identifying product areas where we see exciting potential. One area is radio remote controls, where we have a strong position with, among other, world-leading companies that manufacture heavy duty vehicles. Within all these product areas that we have identified, we see good opportunities to grow with both new and existing customers. Focus on profitability part of our daily work One of the most essential elements in our change programs is of course the focus on profitability. We have now steadily improved EBIT for seven quarters in a row and have reported positive net profit for five consecutive quarters. The improvements have so far been successfully driven by the Ports & Maritime segment and there is still a good potential for continued improvements especially within the Industry segment but also for group-wide initiatives. We now have clear plans and projects underway within Industry to improve profitability. Working with profitability is a constant task and today an established part of our daily work and routines. Good momentum We see continued good momentum in the organization and a strong drive from all our employees to continue to exceed customers’ expectations. Our internal change work continues as purposefully as before to make Cavotec an even stronger company. That, together with the strong underlying driving forces in our markets, makes me confident in Cavotec's ability to continue to grow and create value. David Pagels Chief Executive Officer ===== SIDA 3 ===== Q3 2024 | Interim Report January–September 2024 3 ● cavotec.com Financial Review – Group REVENUE – GROUP AND SEGMENTS – VOLUMES, PRICES, CURRENCY EUR 000s Q324 Q323 9M24 9M23 Group Ports & Maritime Industry Group Ports & Maritime Industry Group Ports & Maritime Industry Group Ports & Maritime Industry Revenue 44,092 27,858 16,234 41,966 27,421 14,545 129,545 80,064 49,481 127,227 79,821 47,406 Increase/(decrease) 2,126 437 1,689 14 1,084 (1,070) 2,318 243 2,075 26,197 23,736 2,461 Change 5.1% 1.6% 11.6% 0.0% 4.1% -6.9% 1.8% 0.3% 4.4% 25.9% 42.4% 5.5% Of which - Volumes and prices 4.8% 1.4% 11.0% 1.0% 5.1% -5.9% 2.2% 0.7% 4.8% 29.1% 45.3% 9.0% - Currency effects 0.3% 0.2% 0.6% -1.0% -1.0% -1.0% -0.4% -0.4% -0.4% -3.2% -2.9% -3.5% JULY–SEPTEMBER 2024 Revenue, order intake and order backlog Revenue increased 5.1% to EUR 44.1 million (42.0), driven by growth in both Ports & Maritime and Industry. Currency effects had a positive impact of 0.3% in the quarter. Order intake decreased -6.0% to EUR 36.1 million (38.5), affected by the timing of order signing in Ports & Maritime. The order backlog decreased -19.1% to EUR 110.4 million (136.5) and decreased -6.7% from the end of the second quarter 2024. EBIT (operating result) EBIT increased 76.3% to EUR 3.0 million (1.7) and the EBIT margin increased 2.7 percentage points to 6.8% (4.1%). The improvement in profitability is mainly reflecting lower operating expenses as a result of the ongoing change programs, increased cost control and improved purchasing procedures. Profit for the period and earnings per share Net financial expenses amounted to EUR -0.5 million (-0.8). Profit before income tax increased to EUR 2.3 million (1.0), driven by the improved EBIT. Income taxes amounted to EUR -1.3 million (-0.8). Profit for the period increased to EUR 1.0 million (0.1). Earnings per share, basic and diluted, improved to EUR 0.010x (0.001x). Cash flow Operating cash flow decreased to EUR -1.1 million (4.3), affected by increased working capital. This is due to higher inventory related to deliveries in the next quarter and the timing of receivables collection. Ports & Maritime Industry EBIT margin, % EBIT, EUR million -6%-4%-2%0%2%4%6%8%10%12%14% -2-1012345 Q322Q422Q123Q223Q323Q423Q124Q224Q324 EBIT and EBIT marginEUR m - 10 20 30 40 50 60 Q322Q422Q123Q223Q323Q423Q124Q224Q324 Revenue quarterly developmentEUR m ===== SIDA 4 ===== Q3 2024 | Interim Report January–September 2024 4 ● cavotec.com JANUARY–SEPTEMBER 2024 Revenue and order intake Revenue increased 1.8% to EUR 129.5 million (127.2), mainly driven by the Industry segment. Currency effects had a negative impact of -0.4%. Order intake decreased -0.3% to EUR 116.3 million (116.7) with a slight decrease in the equipment business offset by improved order intake from service offerings in both segments. EBIT (operating result) EBIT increased 129.9% to EUR 7.3million (3.2) and the EBIT margin improved 3.1 percentage points to 5.6% (2.5%). The improvement in profitability is mainly reflecting lower operating expenses as a result of the ongoing change programs, increased cost control and improved purchasing procedures. Profit for the period and earnings per share Net financial expense amounted to EUR -2.0 million (-2.6). Profit before income tax improved to EUR 5.1 million (0.6). Income taxes amounted to EUR -2.9 million (-2.8). Profit for the period increased to EUR 2.2 million (-2.2). Earnings per share, basic and diluted, improved to EUR 0.021 (-0.021). Cash flow Operating cash flow increased to EUR 3.9 million (-3.2), due to improved profit. Financial position Net debt decreased to EUR -15.3 million from EUR -18.6 million at 31 December 2023 and decreased from EUR -21.4 million at 30 September 2023. Net debt amounted to EUR -13.7 million at 30 June 2024. The leverage ratio, measured as debt-to-adjusted EBITA LTM, improved in the quarter to 0.85x from 1.29x at 31 December 2023. This is a significant decrease from 2.68x at 30 September 2023. The leverage ratio amounted to 0.82x at 30 June 2024. The equity/assets ratio increased in the quarter to 38.8% from 36.0% at 31 December 2023 and grew from 33.3% at 30 September 2023. The equity/assets ratio amounted to 36.3% at 30 June 2024. Employees At the end of the period, Cavotec had 697 (630) full-time equivalent employees. The increase from the same period last year is to a large extent related to new recruitments in service. Ports & Maritime Industry ===== SIDA 5 ===== Q3 2024 | Interim Report January–September 2024 5 ● cavotec.com Financial Review – Segments ORDER INTAKE AND BACKLOG – SEGMENTS EUR 000s Q324 Q323 Change Q224 Change Q423 Change Order intake Ports & Maritime 20,966 25,932 -19.2% 24,512 -14.5% 27,740 -24.4% Industry 15,177 12,529 21.1% 15,792 -3.9% 12,940 17.3% Group 36,143 38,461 -6.0% 40,304 -10.3% 40,680 -11.2% Order backlog 30 Sep 2024 30 Sep 2023 Change 30 Jun 2024 Change 31 Dec 2023 Change Ports & Maritime 88,527 107,015 -17.3% 95,339 -7.1% 99,801 -11.3% Industry 21,854 29,496 -25.9% 22,973 -4.9% 23,761 -8.0% Group 110,381 136,510 -19.1% 118,312 -6.7% 123,562 -10.7% PORTS & MARITIME JULY–SEPTEMBER 2024 Revenue, order intake and order backlog Revenue increased 1.6% to EUR 27.9 million (27.4). Currency effects had a positive impact of 0.2%. Order intake decreased -19.2% to EUR 21.0 million (25.9), affected by the timing of order signing. The order backlog decreased -17.3% to EUR 88.5 million (107.0) and decreased -7.1% from EUR 95.3 in the second quarter 2024. After the end of the quarter, two major shore power orders were signed with a total value of EUR 6.5 million. The first order includes several PowerMove mobile cable management systems designed to serve cruise and RoRo vessels. Deliveries are expected to begin in mid-2025 and conclude by the end of the year. The second order involves supplying two PowerMove shore power systems, scheduled for delivery in the first quarter of 2026. These systems will enable two cruise vessels to connect to shore power simultaneously, further supporting sustainable operations at the port. EBITDA EBITDA improved 65.9% to EUR 3.7 million (2.2) and the EBITDA margin increased 5.1 percentage points to 13.2% (8.1%) due to the successful work to implement the change programs. EBITDA Ports & Maritime, EUR million EBITDA margin Ports & Maritime, % -10%-5%0%5%10%15%20%25%30%35% -2-101234567 Q322Q422Q123Q223Q323Q423Q124Q224Q324 Ports & Maritime EBITDA and EBITDA marginEUR m 0510152025303540 Q322Q422Q123Q223Q323Q423Q124Q224Q324 Ports & Maritime RevenueEUR m ===== SIDA 6 ===== Q3 2024 | Interim Report January–September 2024 6 ● cavotec.com JANUARY–SEPTEMBER 2024 Revenue and order intake Revenue increased 0.3% to EUR 80.1 million (79.8). Currency effects had a negative impact of -0.4%. Order intake decreased -1.9% to EUR 68.7 million (70.1). The good demand for the service offering was offset by lower order intake in the equipment business. EBITDA EBITDA improved 75.6% to EUR 9.2 million (5.2) and the EBITDA margin increased 4.9 percentage points to 11.5% (6.6%) due to the successful work to implement the change programs. INDUSTRY JULY–SEPTEMBER 2024 Revenue, order intake and order backlog Revenue increased 11.6% to EUR 16.2 million (14.6) driven by good demand for radio remote controls and services. Currency effects had a positive impact of 0.6%. Order intake increased 21.1% to EUR 15.2 million (12.5) driven by demand for services. The order backlog decreased -25.9% to EUR 21.8 million (29.5) and decreased -4.9% from EUR 23.0 million in the second quarter 2024. EBITDA EBITDA decreased -16.5% to EUR 0.8 million (0.9) and the EBITDA margin decreased -1.6 percentage points to 4.8% (6.4%). Measures are ongoing to improve profitability. JANUARY–SEPTEMBER 2024 Revenue and order intake Revenue increased 4.4% to EUR 49.5 million (47.4). Currency effects had a negative impact of -0.4%. EBITDA EBITDA decreased -10.9% to EUR 2.3 million (2.6) and the EBITDA margin decreased -0.8 percentage points to 4.6% (5.4%). EBITDA margin Industry, % EBITDA Industry, EUR million -10%-5%0%5%10%15%20%25% -10123 Q322Q422Q123Q223Q323Q423Q124Q224Q324 Industry EBITDA and EBITDA marginEUR m 05101520 Q322Q422Q123Q223Q323Q423Q124Q224Q324 Industry RevenueEUR m ===== SIDA 7 ===== Q3 2024 | Interim Report January–September 2024 7 ● cavotec.com CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME EUR 000s Unaudited three months 30 Sep, 2024 Unaudited three months 30 Sep, 2023 Unaudited nine months 30 Sep, 2024 Unaudited nine months 30 Sep, 2023 Audited year 31 Dec, 2023 Revenue from sales of goods and services 44,092 41,966 129,545 127,227 180,734 Other income 431 71 1,223 1,165 2,076 Cost of materials (21,652) (23,132) (63,074) (69,906) (101,219) Employee benefit costs (13,176) (11,248) (40,442) (36,514) (47,895) Operating expenses (5,257) (4,515) (15,784) (14,182) (19,292) Gross operating result 4,438 3,143 11,468 7,791 14,404 Depreciation and amortisation (633) (564) (1,831) (2,137) (2,782) Depreciation of right-of-use of leased asset (798) (773) (2,319) (2,370) (3,311) Impairment losses - (100) - (100) (1,084) Operating result (EBIT) 3,007 1,706 7,318 3,183 7,227 Interest income 7 2 20 9 18 Interest expenses (506) (768) (2,039) (2,612) (3,471) Currency exchange differences – net (169) (19) (157) 94 (16) Other financial item - (5) - (37) 5 Profit / (loss) before income tax 2,340 916 5,142 637 3,763 Income taxes (1,315) (812) (2,935) (2,809) (3,583) Profit / (loss) for the period 1,025 104 2,207 (2,172) 180 Other comprehensive income: Items that will not be reclassified to profit or loss (3) - 2 3 (99) Currency translation differences (581) 245 (630) (1,165) (1,836) Items that may be subsequently reclassified to profit / (loss) (581) 245 (630) (1,165) (1,836) Other comprehensive income / (loss) for the period, net of tax (584) 245 (628) (1,162) (1,935) Total comprehensive income / (loss) for the period 441 349 1,579 (3,335) (1,755) Total comprehensive income/ (loss) attributable to: Equity holders of the Group 441 349 1,579 (3,335) (1,755) Total 441 349 1,579 (3,335) (1,755) Profit / (loss) attributed to: Equity holders of the Group 1,025 104 2,207 (2,172) 180 Total 1,025 104 2,207 (2,172) 180 Basic and diluted earnings per share attributed to the equity holders of the Group 0.010 0.001 0.021 (0.021) 0.002 Average number of shares 106,696,030 106,696,030 106,696,030 104,315,342 104,103,112 ===== SIDA 8 ===== Q3 2024 | Interim Report January–September 2024 8 ● cavotec.com CONSOLIDATED BALANCE SHEET EUR 000s Unaudited 30 Sep, 2024 Unaudited 30 Sep, 2023 Audited 31 Dec, 2023 Assets Current assets Cash and cash equivalents 12,040 12,493 15,056 Trade receivables 27,653 29,081 27,942 Contract assets - 1,781 2,862 Tax assets 483 3,146 4,718 Other current receivables 10,135 8,474 4,949 Inventories 38,812 46,231 37,429 Assets held for sale - 2,168 1,814 Total current assets 89,123 103,373 94,770 Non-current assets Property, plant and equipment 5,293 5,153 5,414 Right-of-use of leased assets 10,839 11,304 11,529 Intangible assets 36,228 38,018 37,315 Non-current financial assets 288 106 68 Deferred tax assets 7,548 6,414 6,897 Other non-current receivables 1,251 1,177 1,231 Total non-current assets 61,447 62,173 62,454 Total assets 150,570 165,545 157,224 Equity and Liabilities Current liabilities Current financial liabilities - (181) - Current lease liabilities (2,625) (2,918) (2,527) Trade payables (23,153) (32,712) (26,004) Contract liabilities (19,302) (23,723) (19,268) Tax liabilities (5,212) (2,962) (5,111) Provision for risk and charges, current (2,976) (2,202) (2,171) Other current liabilities (11,218) (12,528) (11,320) Total current liabilities (64,486) (77,226) (66,401) Non-current liabilities Non-current financial liabilities (15,485) (21,384) (21,468) Non-current lease liabilities (8,751) (8,817) (9,167) Deferred tax liabilities (1,234) (1,134) (1,251) Other non-current liabilities (57) (42) (12) Provision for risk and charges, non-current (1,630) (1,295) (1,794) Employee benefit obligation (562) (519) (569) Total non-current liabilities (27,718) (33,191) (34,261) Total liabilities (92,205) (110,418) (100,662) Equity Share Capital (54,130) (54,130) (54,130) Reserves (54,919) (56,239) (55,323) Retained earnings 50,684 55,242 52,891 Equity attributable to owners of the parent (58,365) (55,128) (56,562) Total equity (58,365) (55,128) (56,562) Total equity and liabilities (150,570) (165,545) (157,224) ===== SIDA 9 ===== Q3 2024 | Interim Report January–September 2024 9 ● 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 2023 (45,288) (51,633) 53,071 (43,850) - (43,850) (Profit) / Loss for the period - - 2,172 2,172 - 2,172 Currency translation differences - 1,165 - 1,165 - 1,165 Remeasurements of post-employment benefit obligations - (3) - (3) - (3) Total comprehensive income and expenses - 1,162 2,172 3,335 - 3,335 Employees share scheme - (174) - (174) - (174) Capital increase (8,843) - - (8,843) - (8,843) Share Premium Reserve - (5,595) - (5,595) - (5,595) Transactions with shareholders (8,843) (5,769) - (14,621) - (14,621) Balance as at 30 September 2023 (54,130) (56,239) 55,243 (55,128) - (55,128) Audited Balance as at 1 January 2023 (45,288) (51,633) 53,071 (43,850) - (43,850) (Profit) / Loss for the period - - (180) (180) - (180) Currency translation differences - 1,836 - 1,836 - 1,836 Remeasurements of post-employment benefit obligations - 99 - 99 - 99 Total comprehensive income and expenses - 1,935 (180) 1,755 - 1,755 Employees share scheme - 58 - 58 - 58 Capital increase (8,843) - - (8,843) - (8,843) Share Premium Reserve - (5,683) - (5,683) - (5,683) Transactions with shareholders (8,843) (5,625) - (14,467) - (14,467) Balance as at 31 December 2023 (54,130) (55,323) 52,891 (56,562) - (56,562) Unaudited Balance as at 1 January 2024 (54,130) (55,323) 52,891 (56,562) - (56,562) (Profit) / Loss for the period - - (2,207) (2,207) - (2,207) Currency translation differences - 630 - 630 - 630 Remeasurements of post-employment benefit obligations - (2) - (2) - (2) Total comprehensive income and expenses - 628 (2,207) (1,579) - (1,579) Employees share scheme - (223) - (223) - (223) Transactions with shareholders - (223) - (223) - (223) Balance as at 30 September 2024 (54,130) (54,919) 50,684 (58,365) - (58,365) ===== SIDA 10 ===== Q3 2024 | Interim Report January–September 2024 10 ● cavotec.com CONSOLIDATED STATEMENT OF CASH FLOWS EUR 000s Unaudited three months 30 Sep, 2024 Unaudited three months 30 Sep, 2023 Unaudited nine months 30 Sep, 2024 Unaudited nine months 30 Sep, 2023 Audited 31 Dec, 2023 Profit / (loss) for the period 1,025 104 2,207 (2,172) 180 Adjustments for: Net interest expenses 499 766 2,019 2,603 3,453 Current taxes 1,189 991 3,545 3,015 4,221 Depreciation and amortization 633 564 1,831 2,137 2,782 Depreciation of right-of-use of leased assets 798 773 2,319 2,370 3,311 Impairment losses - 100 - 100 1,084 Deferred tax 126 (179) (610) (207) (638) Provision for risks and charges 1,238 57 1,367 487 69 Capital (gain) or loss on assets (7) (20) 20 (18) (20) Other items not involving cash flows (217) 1,960 (316) 211 (454) Interest paid (715) (594) (2,198) (2,330) (3,057) Taxes (paid) / received (1,807) 161 (1,015) 98 (529) 1,736 4,579 6,961 8,467 10,220 Cash flow before changes in working capital 2,761 4,682 9,168 6,295 10,402 Impact of changes in working capital: Inventories (901) (3,510) (2,472) (3,946) 5,451 Trade receivables and contract assets 3,573 (1,210) 3,343 3,850 4,381 Other current receivables 631 (447) (5,158) (2,218) 1,306 Trade payables and contract liabilities (8,515) 4,840 (2,818) (7,815) (18,979) Other current liabilities 1,359 (75) 1,854 621 (628) Impact of changes involving working capital (3,852) (403) (5,250) (9,509) (8,469) Net cash inflow / (outflow) from operating activities (1,091) 4,279 3,918 (3,214) 1,933 Financial activities: Increase of equity capital - - - 14,438 14,526 Net changes in loans and borrowings (1,959) 2,103 (5,983) (4,515) (4,696) Repayment of lease liabilities (353) (410) (1,854) (1,861) (3,156) Net cash inflow / (outflow) from financial activities (2,313) 1,693 (7,837) 8,062 6,674 Investing activities: Investments in property, plant and equipment (314) (86) (666) (361) (911) Investments in intangible assets 19 (319) (39) (320) (624) (Increase)/Decrease of non-current financial asset - - (220) - 38 Disposal of assets (27) 23 1,718 21 (29) Net cash inflow / (outflow) from investing activities (322) (382) 794 (661) (1,526) Cash at the beginning of the period 15,803 8,665 15,056 9,625 9,625 Cash flow for the period (3,726) 5,591 (3,125) 4,187 7,081 Currency exchange differences (37) (1,763) 109 (1,319) (1,650) Cash at the end of the period 12,040 12,493 12,040 12,493 15,056 ===== SIDA 11 ===== Q3 2024 | Interim Report January–September 2024 11 ● cavotec.com NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS 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 close to 50 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, Accountability, 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 incorporated and domiciled in Switzerland. Cavotec SA is listed on Nasdaq Stockholm in the Mid Cap segment. These audited Financial Statements have been approved by the Board of Directors for publication on 8 November 2024. 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 the current reporting period did not have an impact on Cavotec accounts. The interim financial statements should be read in conjunction with the annual financial statements for the year ended in December 2023. 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. The two operating segments are: a) Ports & Maritime – development, manufacture and service of innovative automation and electrification technologies for the global ports and maritime sectors. b) 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 to 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 liquidity risk includes the management of cash in a diverse, global group. Read more about the risks in the Annual Report 2023. ===== SIDA 12 ===== Q3 2024 | Interim Report January–September 2024 12 ● cavotec.com SEGMENT INFORMATION EUR 000s Ports & Maritime Industry Other reconciling items Total Unaudited Three months ended 30 September 2024 Revenue from sales of goods and services 27,858 16,234 - 44,092 Other income 211 220 - 431 Cost of materials and operating expenses before depreciation and amortization (23,582) (15,156) (1,347) (40,085) Gross Operating Result (EBITDA) 4,487 1,298 (1,347) 4,438 Unaudited Three months ended 30 September 2023 Revenue from sales of goods and services 27,421 14,545 - 41,966 Other income (154) 225 - 71 Cost of materials and operating expenses before depreciation and amortization (24,234) (13,172) (1,489) (38,895) Gross Operating Result (EBITDA) 3,034 1,597 (1,489) 3,143 Unaudited Nine months ended 30 September 2024 Revenue from sales of goods and services 80,064 49,481 - 129,545 Other income 623 600 - 1,223 Cost of materials and operating expenses before depreciation and amortization (68,185) (45,734) (5,381) (119,300) Gross Operating Result (EBITDA) 12,502 4,347 (5,381) 11,468 Unaudited Nine months ended 30 September 2023 Revenue from sales of goods and services 79,821 47,406 - 127,227 Other income 474 691 - 1,165 Cost of materials and operating expenses before depreciation and amortization (72,586) (44,030) (3,986) (120,602) Gross Operating Result (EBITDA) 7,709 4,067 (3,986) 7,791 Unaudited Year ended 31 December 2023 Revenue from sales of goods and services 114,688 66,045 - 180,734 Other income 1,048 1,028 - 2,076 Cost of materials and operating expenses before depreciation and amortization (101,237) (61,902) (5,266) (168,406) Gross Operating Result (EBITDA) 14,499 5,171 (5,266) 14,404 ===== SIDA 13 ===== Q3 2024 | Interim Report January–September 2024 13 ● 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 September 2024 EUR 000s Ports & Maritime Industry Total Revenue from external customer Timing of revenue recognition At a point in time 74,904 49,481 124,385 Over time 5,160 - 5,160 Total 80’064 49’481 129’545 30 September 2023 EUR 000s Ports & Maritime Industry Total Revenue from external customer Timing of revenue recognition At a point in time 78,144 47,406 125,550 Over time 1,677 - 1,677 Total 79,821 47,406 127,227 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 30 September 2024 EUR 000s AMER EMEA APAC Total Ports & Maritime 12,435 27,975 39,654 80,064 Industry 4,551 33,855 11,075 49,481 Total 16,986 61,830 50,729 129,545 30 September 2023 EUR 000s AMER EMEA APAC Total Ports & Maritime 11,522 33,428 34,871 79,821 Industry 3,849 32,341 11,216 47,406 Total 15,371 65,769 46,087 127,227 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 ===== SIDA 14 ===== Q3 2024 | Interim Report January–September 2024 14 ● cavotec.com Report on the Review of consolidated interim financial statements to the Board of Directors of Cavotec SA Lugano Introduction We have reviewed the consolidated interim financial statements (consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity, consolidated statement of cash flows and notes to the consolidated interim financial statements on pages 7 to 13) of Cavotec SA for the three months ended 30 September 2024, for the nine months ended 30 September 2024 and for the period ended 30 September 2024. The Board of Directors is responsible for the preparation and presentation of these consolidated interim financial statements in accordance with International Accounting Standard 34 “Interim Financial Reporting”. Our responsibility is to express a conclusion on these consolidated interim financial statements based on our review. Scope of Review We conducted our review in accordance with Swiss Auditing Standard 910 and International Standard on Review Engagements 2410, “Review of interim financial information performed by the independent auditor of the entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Swiss Standards on Auditing and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements have not been prepared, in all material respects, in accordance with International Accounting Standard 34 “Interim Financial Reporting”. PricewaterhouseCoopers SA Thomas Wallmer Laura Cazzaniga Lugano, 7 November 2024 PricewaterhouseCoopers SA, Piazza Indipendenza 1, casella postale, 6901 Lugano, Switzerland Telefono: +41 58 792 65 00, www.pwc.ch PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity. ===== SIDA 15 ===== Q3 2024 | Interim Report January–September 2024 15 ● cavotec.com PARENT COMPANY – CONDENSED STATEMENT OF COMPREHENSIVE INCOME CAVOTEC SA EUR 000s Unaudited three months 30 Sep, 2024 Unaudited three months 30 Sep, 2023 Unaudited nine months 30 Sep, 2024 Unaudited nine months 30 Sep, 2023 Audited year 31 Dec, 2023 Other income 737 518 2,339 2,579 2,352 Employee benefit costs (336) (250) (1,480) (862) (240) Operating expenses (716) (629) (1,874) (2,023) (2,482) Operating result (315) (361) (1,015) (306) (370) Interest expenses – net (2,048) (378) (2,980) (1,377) (1,767) Currency exchange differences – net 4 (2) 17 81 70 Other financial items - - - (37) - Profit / (Loss) for the period (2,359) (741) (3,978) (1,639) (2,068) Income taxes 9 (5) 3 (11) (12) Profit / (Loss) for the period (2,350) (746) (3,975) (1,650) (2,080) Other comprehensive income: Actuarial gain (loss) - - - - - Total comprehensive income for the period (2,350) (746) (3,975) (1,650) (2,080) PARENT COMPANY – CONDENSED BALANCE SHEET CAVOTEC SA EUR 000s Unaudited nine months 30 Sep, 2024 Unaudited nine months 30 Sep, 2023 Audited 31 Dec, 2023 Assets Current assets Cash and cash equivalents 447 - 152 Trade receivables 456 1,834 3,023 Tax assets 10 2 25 Other current receivables 1,778 2,299 380 Total current assets 2,691 4,135 3,580 Non-current assets: Investment in subsidiary companies 93,365 93,365 93,365 Intangible assets 116 - 185 Other non-current financial liabilities 288 68 68 Total non-current assets 93,769 93,433 93,618 Total assets 96,460 97,567 97,198 Equity and Liabilities Current liabilities Bank overdraft - (181) - Trade payables (4,726) (570) (1,279) Other current liabilities (3,623) (5,776) (4,772) Total current liabilities (8,349) (6,527) (6,051) Non-current liabilities: Long-term financial debt (37,586) (36,215) (36,915) Other non-current liabilities (57) (30) (12) Total non-current liabilities (37,643) (36,245) (36,927) Total liabilities (45,992) (42,772) (42,978) Total equity (50,468) (54,795) (54,220) Total equity and liabilities (96,460) (97,567) (97,198) ===== SIDA 16 ===== Q3 2024 | Interim Report January–September 2024 16 ● cavotec.com Other informationForward 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 limited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of competing products and their pricing, product development, commercialization and technological difficulties, interruptions in supply, and major customer credit losses. Annual General Meeting 2025 The Annual General Meeting 2025 will take place on 3 June 2025 in Lugano, Switzerland. Shareholders wishing to raise an issue for discussion at the AGM may do so by submitting their proposal to the Chairman of Cavotec by email: investor@cavotec.com or by post to: Cavotec SA, AGM 2024, Corso Elvezia 16, CH-6900 Lugano, Switzerland. To ensure their inclusion in the notice and thus on the agenda for the AGM, proposals must be received by the Company no later than 17 April 2025. The Nomination Committee Prior to the Annual General Meeting 2025, the Nomination Committee consists of Henrik Blomquist, representing Bure Equity AB, Fabio Cannavale, representing Nomina SA, Per Colleen, representing TomEnterprise Private, Thomas Ehling, representing The Fourth Swedish National Pension Fund, and Patrik Tigerschiöld, Chairman of Cavotec’s Board of Directors. Henrik Blomquist is the Chairman of the Nomination Committee. Shareholders wishing to submit proposals to the Nomination Committee for the 2025 AGM may do so by sending an email to nomination@cavotec.com or writing to: Cavotec SA, Nomination Committee Corso Elvezia 16, CH-6900 Lugano, Switzerland. Proposals must be submitted no later than 17 April 2025. Financial calendar Fourth quarter and year-end report 21 February 2025 Annual and Sustainability Week that begins Report 2024 31 March 2025 First quarter report 25 April 2025 Second quarter report 25 July 2025 Third quarter report 7 November 2025 Fourth quarter report 20 February 2026 Annual and Sustainability Week that begins Report 2025 30 March 2026 Webcasted presentation and telco CEO David Pagels and CFO Joakim Wahlquist will present the interim report on Friday 8 November at 10:00 am CET. If you wish to participate via webcast, please use the link https://ir.financialhearings.com/cavotec-sa-q3-report-2024. Via the webcast you may submit written questions. If you wish to participate via teleconference, please register on the link https://conference.financialhearings.com/teleconference/?id=50048867. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. The presentation is in English. Interim reports on cavotec.com The full report and previous interim and annual reports are available on https://ir.cavotec.com/financial-reports. Contact person for analysts and media Joakim Wahlquist, Group CFO Phone +41 91 911 4010 Email investor@cavotec.com This is information that Cavotec SA is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 am CET on 8 November 2024. About Cavotec Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonization of ports and industrial applications. Backed by close to 50 years of experience, our systems ensure safe, efficient and sustainable operations for a wide variety of customers and applications worldwide. To find out more about Cavotec, please visit cavotec.com.