Annual Report (ESEF) • Mar 31, 2025
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Download Source File549300W82KU6CIGQP6892024-01-012024-12-31iso4217:EUR549300W82KU6CIGQP6892023-01-012023-12-31549300W82KU6CIGQP6892024-12-31549300W82KU6CIGQP6892023-12-31549300W82KU6CIGQP6892022-12-31ifrs-full:IssuedCapitalMember549300W82KU6CIGQP6892022-12-31ifrs-full:OtherReservesMember549300W82KU6CIGQP6892022-12-31ifrs-full:RetainedEarningsMember549300W82KU6CIGQP6892022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember549300W82KU6CIGQP6892022-12-31ifrs-full:NoncontrollingInterestsMember549300W82KU6CIGQP6892022-12-31549300W82KU6CIGQP6892023-01-012023-12-31ifrs-full:RetainedEarningsMember549300W82KU6CIGQP6892023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember549300W82KU6CIGQP6892023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember549300W82KU6CIGQP6892023-01-012023-12-31ifrs-full:OtherReservesMember549300W82KU6CIGQP6892023-01-012023-12-31ifrs-full:IssuedCapitalMember549300W82KU6CIGQP6892023-12-31ifrs-full:IssuedCapitalMember549300W82KU6CIGQP6892023-12-31ifrs-full:OtherReservesMember549300W82KU6CIGQP6892023-12-31ifrs-full:RetainedEarningsMember549300W82KU6CIGQP6892023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember549300W82KU6CIGQP6892023-12-31ifrs-full:NoncontrollingInterestsMember549300W82KU6CIGQP6892024-01-012024-12-31ifrs-full:RetainedEarningsMember549300W82KU6CIGQP6892024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember549300W82KU6CIGQP6892024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember549300W82KU6CIGQP6892024-01-012024-12-31ifrs-full:OtherReservesMember549300W82KU6CIGQP6892024-12-31ifrs-full:IssuedCapitalMember549300W82KU6CIGQP6892024-12-31ifrs-full:OtherReservesMember549300W82KU6CIGQP6892024-12-31ifrs-full:RetainedEarningsMember549300W82KU6CIGQP6892024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember549300W82KU6CIGQP6892024-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:AEDxbrli:sharesxbrli:shares 2024 ANNUAL AND SUSTAINABILITY REPORT Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonisation of ports and industrial applications. We want to contribute to a world that is cleaner, safer and more efficient by providing innovative connection solutions for ships, po rts, and industrial equipment today. We thrive by shaping future expectations in the areas in which we are active. Our credibility derives from our expertise and dedication to innovation and world-class operations. Our 50 years of success rest on our core values: Integrity, Accountability, Performance, and Teamwork. We connect the future. ”Our markets are driven by strong megatrends.” Our automated mooring Our shore power solutions improve safety solutions cut emissions 6 16 significantly. 18 at berth to zero. INTRODUCTION SUSTAINABILITY REPORT FINANCIAL STATEMENTS Cavotec in brief 4 Our sustainability agenda 23 Consolidated financial statements 50 Highlights 2024 5 Value chain 24 Notes to the financial statements 54 CEO’s message 6 Stakeholder dialogues 26 Risk management 70 Double materiality assessment 27 Statutory financial statements 79 STRATEGY AND FINANCIALS Governance 28 Notes to statutory financial statements 81 Environmental and climate impact 29 Market trends 9 Caring for our people 31 OTHER INFORMATION Our offering 10 Business ethics 34 Strategic priorities 11 Financial definitions 87 Contribution to the UN SDGs 34 Financial performance 12 The share 88 Financial targets 14 Shareholder information 90 CORPORATE GOVERNANCE Cavotec’s history in brief 91 SEGMENTS Remuneration report 36 Corporate governance report 43 Introduction 16 Board of Directors 47 Ports & Maritime 17 Cavotec Management Team 48 Industry 19 3 INTRODUCTION Cavotec in brief Cavotec in brief We are a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonisation of ports and industrial applications. Backed by 50 years of experience, our systems ensure safe, efficient and sustainable operations for a wide variety of customers and applications worldwide. We report two business segments; Ports & Maritime and Industry. Our offering includes automated mooring, shore power, motorised reels, crane electrification, radio remote controls and charging solutions. Service is an integral part of our business segments. We enable our customers to optimise productivity, minimise risk to personnel and equipment, and reduce environmental impact. Our unique technologies and engineering expertise combined with a worldwide service offering maximise our customers’ profitability and sustainability. In this way, we help their businesses grow and accelerate progress towards a sustainable future. BUSINESS SEGMENTS Ports & Maritime World-leading solutions for ports, ships and other marine applications. Unique systems for automated mooring, shore power, crane electrification, and connection and charging systems, significantly improving the environment in ports worldwide. Industry Solutions that drive productivity and contribute to the customers’ operational efficiency, electrification as well as occupational health and safety. Our product offering includes motorised cable and hose reels, radio remote controls, power connectors, spring driven cables and hose reels. 175.0 10.9 126.4 80+ 708 Revenue, EUR million EBIT, EUR million Order backlog, EUR million Number of countries where Employees, full-time equivalents our systems are installed 4 INTRODUCTION Highlights 2024 Solid financial improvements and important orders signed Profitability continued to improve in 2024 thanks to our effective change programs and our financial position was further strengthened. We signed several important orders with both new and existing customers, signalling healthy market demand for our solutions and services offering. KEY EVENTS KEY FIGURES • Shore power retrofit order with major European shipping line, worth USD 5.7 million EUR 000s 2024 2023 2022 2021 2020 • Two-year service agreement with APM Terminals at Port of Tanger, Marocco Order intake 177,780 157,354 Not reported • Three-year service agreement for shore power systems in large North American port Order backlog 126,390 123,562 147,207 98,893 57,773 • The world’s first ultra-fast 3 MW charging system for battery-powered heavy-duty vehicles in service at a mining site in Australia Revenue 174,952 180,734 147,849 115,794 115,342 • Order for shore power with a global shipping company, worth USD 5 million EBIT 10,893 7,227 (4,506) (747) 37 • Two-year service agreement with Port of Salalah, Oman EBIT margin 6.2% 4.0% (3.0%) (0.6%) 0.0% • South America’s first MoorMaster system inaugurated at DP World San Antonio, Adjusted EBIT 11,139 7,227 (4,506) (747) 37 Chile’s largest multipurpose port Adjusted EBIT margin 6.4% 4.0% (3.0%) (0.6%) 0.0% • Inauguration of new production facility in Chennai, India Net profit/(loss) for the period 3,840 180 (3,170) (1,211) (2,973) • Orders for shore power systems to two Mediterranean ports, worth EUR 6.5 million Basic and diluted earnings per share, EUR 0.036 0.002 (0.034) (0.013) (0.031) • Shore power orders for three Italian ports, worth EUR 7 million • Shore power order with global shipping company, worth EUR 4 million Operating cash flow 6,226 1,933 (5,485) 8,654 15,501 • Order for automated mooring system for Port of Dublin, Ireland Net debt (15,257) (18,638) (30,328) (19,630) (15,264) • Order with Qwello for 1,000 spring cable reels for electric vehicle charging stations in Europe Leverage ratio 0.91x 1.29x 12.5x 3.20x 0.98x REVENUE,EURMILLIONOPERATINGCASHFLOW,EURMILLIONREVENUEBYGEOGRAPHY,% 200 12 24 150 9 18 Europe, Middle East and Africa, EUR 81.5 million 100 6 12 50 3 6 North America, EUR 23.3 million 0 0 0 -50 -3 -6 20202021202220232024 20202021202220232024 Revenue, EUR million EBIT margin, % 5 INTRODUCTION CEO’s message We have built a stronger Cavotec In 2024, we established a stronger Cavotec with higher profitability and a strengthened financial position. Thanks to the success of our change programs, we have also been able to enhance focus on product development and thus increase our competitiveness. Demand for our offering remains good and we have a solid foundation to continue growing with improved profitability. We met good demand in 2024 and order intake increased by 13.0% to “I am confident in our ability to EUR 177.8 million and the order backlog increased by 2.3% to EUR 126.4 grow with improved profitability million. This development is largely driven by good demand for our shore and that we are ready to slightly, by -3.2%, to EUR 175.0 million, as a result of the review of the take Cavotec to the next level.” The backlog review has been part of our comprehensive change pro- improving by 50.7% to EUR 10.9 million and the EBIT margin growing to ports of which three in Italy with a combined order value of EUR 13.5 mil- lion and a global shipping company with a contract worth EUR 4 million. All orders are to be delivered over the next two years. These orders are cover basically all processes in the company as well as cultural issues. clear signs of the strong need to reduce emissions in marine environ- An important improvement in 2024 has been made in supply, where we the evolving needs of the shipping industry. through centralised processes. An example of how we are working to Among our other business successes in 2024 is the contract for improve our capabilities and internal processes is the inauguration in automatic mooring at the Port of Dublin. This is a milestone to us since 2024 of our new assembly unit in India. The new facility gives us both - tainable port operations in the region. market. In June 2024, I also had the pleasure of attending the inauguration installed at DP World San Antonio, the largest multipurpose port in Chile. Our state-of-the-art technology helps the port enhance employee the Industry segment. The Industry segment has started its measures safety and increase ship-to-shore crane productivity by reducing vessel motion. Furthermore, the increased crane productivity together with measures in the latter part of 2024. faster mooring will shorten vessel turnaround times, thereby reducing vessel fuel consumption and emissions. STRONG MEGATRENDS DRIVING MARKET DEMAND Our markets are driven by megatrends such as the need for climate SUCCESS WITH OUR ENHANCED SERVICE OFFERING to capture the untapped potential of our large globally installed base. shore power solutions. This trend is also reinforced by regulations in the - area. At the end of 2024, we announced contracts for shore power with tion of the equipment for customers and acting as a system integrator. David Pagels, CEO This has been a successful venture that has led to important orders for 6 INTRODUCTION CEO’s message us in 2024. Among the announced contracts are a two-year service EXCITING NEW PRODUCTS IN PIPELINE agreement with APM Terminals at Port of Tanger in Morocco and a new This year marks 50 years since Cavotec was founded. These years have two-year service agreement signed with Port of Salalah in Oman. We increase our focus on product development in 2024 which has strength- been characterised by innovation, customer focus and the ability to develop solutions that improve customers’ processes. Over the past American port where we will take care of the plug in and plug out of our solutions that solve customers’ future needs. The development work ten years, the focus has increasingly shifted to electrifying customers’ installed power units. This provides us with valuable insights into how we has been done both independently and in collaboration with customers. processes to meet the need for reduced climate impact and improved can further improve our products while ensuring that the equipment is be launched in 2025. sustainability work in 2024 since we see that sustainability work will give - ing the development of the new European sustainability reporting stan- dards to understand the implications to us. We have started 2025 by strengthening the Cavotec Management Team with two new members – Jonathan Eriksson and Nicklas Vedin who have been given responsibility for the Industry and the Ports & Maritime divisions respectively. Patrick Mares, previously head of the Ports & Maritime division, is our new CTO with responsibility for product man- agement. With these changes, we now have a management team and governance model that allow us to work and allocate resources even OUTLOOK I am proud of our employees’ commitment and their focused work, which has enabled the successful transformation of Cavotec. One of Cavotec’s key strengths is that we operate in growing markets driven by the need to reduce climate impact and improve sound environments. I can also note that we have a promising portfolio of new products set to launch in are ready to take Cavotec to the next level. David Pagels CEO Shore power is the only solution that cuts emissions totally at berth. We are at the forefront of delivering highly innovative shore power solutions and services with more systems installed around the world than any other provider including cruise vessels, container ships Ro/Pax and Ro/Ro ferries. 7 STRATEGY Strategy We have 50 years of experience in creating more sustainable and efficient processes for our customers worldwide. We are proud of our long-term customer relationships and our ability to stay ahead by offering innovative solutions that solve our customers’ problems. 8 STRATEGY Strong market trends create growth opportunities There is a great interest in our climate-friendly solutions, driven by strong market trends such as customers’ need to decarbonise as well as new environmental regulations. During our 50 years of experience, we have developed a comprehensive understanding of our market and the factors that influence it, and we have established enduring relationships with our customers. Our long experience and application knowledge makes it easier for us to be able to understand, anticipate and adapt to the changing needs and behaviours of our market. This in turn enables us to deepen existing customer relationships, win new customers and continue to strengthen our market position. 1 2 3 4 5 6 Climate Safety The climate is one of the most impor- A critical part of efforts to fulfil the Awareness is increasing globally Occupational injuries and work- Global trade means that many differ- In many parts of the world, demands tant issues of our time. In order to Paris Agreement is electrification and about problems associated with noise related ill health are high on the sus- ent raw materials and products are on the industry to reduce its negative reach the goals of the Paris Agree- the transition to fossil-free energy. pollution both on land and in the seas. tainability agenda of many companies transported over great distances in climate and environmental impact are ment, it is required that all industries The electrification of processes that Noise pollution affects many people today. Many companies have zero the world. About 90% of global trade increasing. Requirements are being and businesses contribute by reduc- have until now been performed with on a daily basis and can cause health visions when it comes to occupa- is today seaborne according to the made by international bodies such as ing their emissions. The shipping sec- fossil fuels is ongoing throughout problems such as high blood pres- tional injuries and invest in equipment International Maritime Organization. the International Maritime Organiza- tor accounted for 2.89% of global many sectors, not least in shipping sure, heart disease, and stress. Today and processes that reduce risks to Efficient and well-performing value tion and supranational authorities greenhouse gas emissions in 2018 and mining. Electrification not only we also know that noise pollution can employees. chains are central to the functioning such as the EU. Demands are also according to the International Mari- contributes to the decarbonisation, it affect animals on land and in the seas. For us, safe products and solu- of global trading systems. increasing from local authorities that time Organization. can also generate substantial energy For many sectors, it is important tions that improve the workplace End-users of our solutions are want to lower diesel emissions and When we look at the mining sector, savings due to greater efficiency and to reduce noise in the workplace to environment have always been an central to the efficient functioning of noise levels in and around port areas, it is responsible for 4 –7% of the enhance air quality. improve the health of employees and important driving force and key com- global trade and they require con- for example. Stakeholders such as world’s greenhouse gas emissions The electrification of vessels, increase attractiveness as an petitive advantage. By automating stant service support to maintain effi- investors and lenders are also push- according to an article published by cranes and other industrial equip- employer. Here, we contribute previously manual processes, such as ciency and delivery reliability. We are ing companies to become more McKinsey & Co in 2020. ment are central parts of our offering. through our products and solutions mooring, the risk of injury to sailors therefore a core part of our custom- sustainable. The urgency of reducing carbon Shipping companies and shipyards, that improve the sound environments and dock workers is significantly ers’ value chains, which is an impor- Increased regulations drive emissions is increasingly a priority for for example, are becoming increas- in ports and mines, for example. reduced. tant reason for the long and close demand for our products and ser- a growing number of industries, ingly interested in the shore power customer relationships. vices. For us, this creates increased including the shipping and mining solutions that enable ships to switch opportunities to reach new custom- sectors. This means that interest in off the diesel generators at berth. ers and strengthen our market posi- our products and services increases tion in sectors that are critical for because they reduce customers’ car- industry and society. bon footprint and help them contrib- ute to reaching the Paris Agreement. 9 STRATEGY We target the global need to decarbonise Worldwide, there is a growing need to reduce green-house gas emissions. With our solutions and services, emissions in ports, mines and other industrial sites are reduced while workplaces become safer. We provide safe and efficient • Skilled employees • Ports & Maritime • Ports and port operators electrification solutions and • Global reach • Industry • Shipbuilders and shipping companies services that decarbonise ports, • Services • 50 years of experience • Mining operators vessels and heavy-duty vehicles. and innovation • Manufacturers of mining machinery and mobile cranes With 50 years of experience and innovation, we have established our- CRITICAL SOLUTIONS FOR OUR CUSTOMERS selves as a preferred supplier and service provider to leading companies Our business is characterised by close, long-term customer relation- in above all the marine and mining industries. By enabling the electrifica- ships. Because part of our sales are to OEMs, it is important that we also tion of ships, port equipment, and mining machinery, we support our maintain close relationships with the end customers, since they define customers to reduce greenhouse gas emissions and also noise pollu- the specifications. The end customers may also be those who purchase tion. The need to reduce the environmental impact is driven from several maintenance service and spare parts directly from us. different stakeholders, including supranational bodies and local authori- Several of our products represent a small value of the final product, REMOTE CONTROL ties. Our solutions also contribute to increasing the safety of profes- but they are critical components of the operation. Downtime can create sional groups such as sailors, dock workers and miners. substantial cost, so customers and end customers are meticulous in their specifications, and value service excellence. CUSTOMERS IN CRITICAL INFRASTRUCTURE We provide our solutions through our two business segments: Ports & GLOBAL SUPPLY ORGANISATION Maritime and Industry. Our services organisation provide systems inte- Assembly of our products takes place in plants, often located in the gration, maintenance, controls, spare parts and repairs to extend equip- same region as the customers. Through our service organisation and its ment lifespan. local presence, we are geographically close to our customers. Within Ports & Maritime, a significant proportion of sales are large Our most important resource is our over 700 employees worldwide projects such as electrically powered vacuum mooring systems, shore and their collective experience. Together with our customers and part- power solutions and motorised reels for container cranes. Sales often ners, we constantly develop our offering and create new innovative take place through OEMs that install Cavotec’s products in vessels and solutions. port cranes, for example. The end customers, typically ports and ship- ping companies, provide OEMs with product and system specifications. For Industry, mining machinery OEMs account for the majority of rev- With our solutions and services, emissions in ports, mines and other enue. Sales mainly comprise of critical components in larger volumes. industrial sites are reduced while workplaces become safer. 10 STRATEGY Strategic priorities for profitable growth We began the transformation of Cavotec in 2023 through clear strategic priorities and change programs. This has been successful and we continue to work on our strategic priorites to build an even stronger Cavotec. We always strive to create value not only for us and our customers, but Our culture and core values are central to success. We see a good also for our customers’ customers. In this way, we strengthen and ensure momentum in the organisation and a strong drive from all our employees. FOUNDATION FOR long-term and close customer relationships. With a large installed base Cavotec’s culture must be characterised by openness and a common PROFITABLE GROWTH worldwide, we have significant potential for upselling, not least of our desire to reach a shared goal, while working as a unified company. services offering that we have further enhanced during 2024. At the Our core values of integrity, accountability, performance and team- same time, we have dialogues with new customers who, through their work lay the foundation for how we act towards each other and the world specifications, ensure that our leading products become part of their around us. COMPREHENSIVE CHANGE PROGRAMS orders. Among the changes we have implemented are better processes for pricing and clear responsibilities for following up on customer projects Innovation is about solving our customers future needs and challenges. and aftermarket sales. Through our technical leadership and application knowledge from our OUR STRATEGIC PRIORITIES large installed base, we create competitive advantages and strengthen Customers and go-to-market our position both with existing and potential customers. For us, inno- • Operational excellence We must continuously improve effectiveness and efficiency throughout vation also has a broader meaning and it is about having a mindset that • Cost control the organisation and value chain. This is done by smart use of new tech- characterises everything we do. If we are to succeed, we must all be • Culture and values nologies, platforms and capabilities that drive productivity in combina- innovative, dare to question existing routines and be open to new ideas • Innovation tion with new routines and processes that improve our ways of working. and ways of working. • People An example of operational excellence is our new assembly facility in • India which opened in 2024 to service the significant local Indian market. With this new unit, we will also improve our global supply chain and Our employees are Cavotec’s most important asset and motivated enhance our production capacity since it will function also as a supply employees are a prerequisite for us to succeed in creating profitable hub for our operations across the globe. growth. With a strong employer brand, we create the conditions to retain, It is important that we execute on each one of our strategic priorities develop and recruit the industry’s best talents. One step in creating a because they are interdependent to reach our overall goal. We only motivating environment is clearly defined roles and responsibilities have satisfied customers if we have motivated employees and efficient Cost control does not only relate to monitoring costs. It is a way of thinking linked to measurable goals and follow-up, as well as constant learning processes. We can only achieve operational excellence if we have that encompasses our ways of working and our supplier and customer that develops and stimulates us. good cost control. Without innovation as a behaviour, we cannot relationships. It is about what resources we should have, when and where change processes and constantly improve our offer. Our culture and they should be applied. values must embrace change and the will to work towards our overall To improve cost control throughout the organisation, we have cost goal of profitable growth. optimisation and sourcing cost reduction programs in place across the group. 11 STRATEGY Solid financial improvements We have steadily improved our financial performance and market position during 2024 through clear strategic priorities. Order intake increased 13.0% to EUR 177.8 million (157.4) with good Cost of materials decreased 16.0% to EUR 85.1 million (101.2) and EBIT increased 50.7% to EUR 10.9 million (7.2) and the EBIT margin development in both the Ports & Maritime and Industry segments. Order constitutes 48.6% (56.0%) of revenue. Employee benefit costs increased improved 2.2 percentage points to 6.2% (4.0%). The improvement in backlog increased 2.3% to EUR 126.4 million (123.6). 11.6% to EUR 53.4 million (47.9) and constitutes 30.5% (26.5%) of reve- profitability is mainly reflecting lower cost of materials due to improved nue. Operating expenses increased 9.4% to EUR 21.1 million (19.3) and purchasing procedures. constitutes 12.1% (10.7%) of revenue. Revenue decreased -3.2% to EUR 175.0 million (180.7) where currency Adjusted EBIT increased 54.1% to EUR 11.1 (7.2) million and the adjusted effects had a negative impact of -0.2%. In the regions, revenue EBIT margin improved 2.4 percentage points to 6.4% (4.0%). EBIT has increased in North America 1.4% to EUR 23.3 million (23.0) and in Asia Gross operating result increased 15.8% to EUR 16.7 million (14.4) with bee adjusted in the fourth quarter 2024 for non-recurring costs related Pacific 0.4% to EUR 70.1 million (69.8). In Europe and Middle East reve- a gross operating margin of 9.5% (8.0%). to the investigation of potentially moving the registered office from nue decreased -7.3% to EUR 81.5 million (88.0). Switzerland to Sweden. Depreciation and amortisation including depreciation of right-of-use of leased asset and impairment losses decreased 19.4% to EUR -5.8 (-7.2) million. REVENUE,EURMILLIONORDERINTAKE,EURMILLIONORDERBACKLOG,EURMILLION 60 80 160 70 50 60 120 40 50 30 40 80 30 20 20 40 10 10 0 0 0 1Q232Q233Q234Q231Q242Q243Q244Q24 1Q232Q233Q234Q231Q242Q243Q244Q24 1Q232Q233Q234Q231Q242Q243Q244Q24 Ports & Maritime Industry 12 STRATEGY “We have made significant progress in 2024 and have Interest income increased to EUR 0.035 million (0.018). Interest Cash flow before changes in working capital decreased to EUR 8.4 mil- potential for further improvements. A key focus area expenses decreased 25.0% to EUR -2.6 million (-3.5). Net financial lion (10.4). Changes in working capital amounted to EUR -2.2 million income amounted to EUR -2.7 million (-3.5), mainly impacted by lower (-8.5). Operating cash flow increased to EUR 6.2 million (1.9) due to in 2025 is capital employed and cash flow to free up interest expenses. improved profitability and working capital during the year. Investing resources for continued investments in, among other activities amounted to EUR 0.7 million (-1.5). things, product development.” Profit before income tax improved 118.1% to EUR 8.2 million (3.8). Net debt decreased to EUR -15.3 million from EUR -18.6 million at 31 December 2023. The leverage ratio (measured as debt-to-adjusted Income taxes amounted to EUR -4.4 million (-3.6). which represents EBITA) improved to 0.91x from 1.29x during the year. The equity/assets 53.2% (95.2%) of profit before income tax. Tax paid was EUR 4.7 million ratio increased to 40.4% from 36.0% at 31 December 2023. Cash and (0.5) million, which equates to 57.6% (14.1%) of profit before income tax. cash equivalents amounted to EUR 11.6 million (15.1). Profit for the year increased to EUR 3.8 million (0.2). Earnings per share, At the end of the year, Cavotec had 708 (664) full-time equivalent basic and diluted, improved to EUR 0.036 (0.002). employees. Joakim Wahlquist CFO ADJUSTEDEBITANDADJUSTEDEBITMARGINOPERATINGCASHFLOW,EURMILLIONNETRESULTANDEARNINGSPERSHARE 6 12 6 2.5 0,03 2.0 4 0,02 4 8 1.5 2 1.0 0,01 2 4 0 0.5 0.0 0,00 -2 0 0 -0.5 -4 -0,01 -1.0 -2 -4 -6 -1.5 -0,02 1Q232Q233Q234Q231Q242Q243Q244Q24 1Q232Q233Q234Q231Q242Q243Q244Q24 1Q232Q233Q234Q231Q242Q243Q244Q24 Adjusted EBIT, EUR million Net result, EUR million Adjusted EBIT margin, % Earnings per share, EUR 13 STRATEGY Financial targets Adopted by the Board of Directors in February 2020. +5% +10% 30–50% To achieve annual organic revenue growth of at least 5% from 2020, in To reach an annual adjusted EBIT margin of more than 10% within two The target is to distribute dividends of approximately 30–50% of net addition to possible acquisitions. years and more than 12% within five years. profits over a business cycle. Any dividend proposal will be based on financial position, investment needs, acquisitions and liquidity position. OUTCOME OUTCOME OUTCOME No dividend has been paid for the years 2020–2023. The Board of 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 Directors proposes to the Annual General Meeting 2025 that no dividend -3.2% +22.2% +27.7% +0.4% 0.0% 6.4% 4.0% -3.0% -0.6% 0.0% be paid for the 2024 financial year. 14 SEGMENTS Our long history of 50 years of operation and innovation has resulted in a unique application knowledge and understanding of our customers’ challenges and needs. Our offering is aimed at the marine sector and other industrial sectors where our solutions improve customers’ operational performance. 15 SEGMENTS An attractive offering in electrification With our extensive experience and comprehensive range of innovative technologies we help customers to connect and electrify port operations and other critical industrial applications. SHORE POWER CHARGING SOLUTIONS We provide a comprehensive range of shore power connection and Our connection solutions optimise the charging of a variety of mobile A LEADING CLEANTECH OFFERING charging solutions for ports, conventional ships, and e-vessels. Shore equipment such as electric and hybrid vehicles, trucks, AGVs and ships. power is the only solution that cut emissions at berth to zero. Shore We provide manual and automatic connection systems that withstand power solutions enable the connection of ships in port to onshore power challenging port environments and ensure operational safety. SEGMENTS supply, allowing ships’ diesel generators to be switched off. Our Megawatt Charging System (MCS) provides up to 4.5 MW charg- ing power with a single MCS connector. The system significantly reduces PORTS & MARITIME INDUSTRY AUTOMATED MOORING charging time and maximises uptime compared to existing combined • Shore power • Radio remote controls Our MoorMaster® vacuum automated mooring system replaces conven- charging systems. MCS can be used to charge all kinds of heavy-duty • Automated mooring • Charging solutions tional mooring lines with automated vacuum pads that moor and release vehicles, such as agriculture and construction vehicles, large mining • Crane electrification • Cranes vessels in seconds at the push of a button. With more than 1.3 million trucks and e-vessels. • Industrial applications successful moorings completed since its introduction in the late 90s, MoorMaster is the world’s only widely used automated mooring technol- ogy. It is in use with a wide variety of vessels and applications, including 400 metre long container ships and bulk carriers. Mooring sequences SHARE OF TOTAL REVENUE takes less than a minute and the release phase is even quicker. The sys- SERVICES tem reduces emissions during the mooring process by more than 90% and enables vessel overhang. MoorMaster’s advanced control system minimises vessel motion along the berth, increasing the efficiency of Ports & Maritime, EUR 109.9 million Systems integration loading and unloading. Industry, EUR 65.0 million MINING AND TUNNELLING EQUIPMENT Our mining and tunnelling systems enable the connection, electrification Our offering ranges from turnkey solutions and systems integration to and automation of mobile mining and tunnelling equipment. These volume products. With our services offering, we help customers to include Human Operator Interface systems, motorised cables and hose extend the lifecycle of our systems and reduce operating costs. Our ser- reels, spring reels, junction boxes, power connectors and industrial con- SHARE OF TOTAL EBITDA vices organisation offer support around the world and around the clock. trollers such as chairs and joysticks. CRANE ELECTRIFICATION AND CRANES INDUSTRIAL APPLICATIONS We power cranes with a wide range of systems such as high-speed We provide solutions and products for a wide variety of processing and Ports & Maritime, EUR 13.8 million motorised cable reels for fibre optics, liquids or electricity. The offering transportation applications such as automotive, power plants, steel and Industry, EUR 2.9 million also includes cable protection and power connection systems. aluminium, wind and solar energy. We have extensive experience of pro- Our systems have a proven track-record in the harshest of environ- viding customised solutions for the safe and efficient transmission of ments and under extreme mechanical stress. Our crane solutions are energy, signals and data, as well as liquid and gaseous media. used in ports and terminals, extraction applications, lifting, and material handling. 16 SEGMENTS SEGMENT PORTS & MARITIME We significantly improve the environment in ports worldwide Our Ports & Maritime segment provides world-leading solutions for ports, ships and other marine applications. With our unique systems for automated mooring, shore power, crane electrification, and connection and charging systems, we significantly improve the environment in ports and terminals worldwide. Our systems are in use all over the world and we provide services to cus- KEY BUSINESS WINS IN 2024 PERFORMANCE IN 2024 tomers around the clock. Customers include ship owners and operators, We signed significant orders for shore power and extensive, multi-year The order backlog increased 2.5% to EUR 102.3 million (99.8) driven ports and terminals, port equipment manufacturers, shipyards, and service contracts. In the last quarter 2024, we announced orders for by good demand for shore power solutions and the service offering. major contractors. Among our customers are ABB, DP World, and a shore power with a total value of EUR 17.5 million. Customers include Revenue decreased -4.2% to EUR 109.9 million (114.7). Currency number of ports across the world including Hong Kong, Los Angeles, five Mediterranean ports of which three in Italy with a total value of effects had a negative impact of -0.2%. Shanghai and Tanger. EUR 13.5 million, and a global shipping company with a contract value EBITDA improved 22.7% to EUR 13.8 million (11.2) and the EBITDA of EUR 4 million. Earlier in 2024, we announced shore power contracts margin increased 2.7 percentage points to 12.5% (9.8%) due to OUR COMPETITIVE ADVANTAGES with a major European shipping line, worth USD 5.7 million, and a con- successful implementation of the change programs. Our main competitive advantages are high quality, technical ability and tract with a global shipping company, valued at USD 5 million. broad services offering. Our customers never compromise on safety, At the end of 2024, we signed a contract for automated mooring for which is often a reason for them to choose us as their preferred supplier. Port of Dublin. This contract is a milestone since it is the first installation in Ireland and expected to serve as a benchmark for sustainable port operations in the region. “ We have a strong position in the Within services, we signed two-year agreements with, among other, market, based on our ability to APM Terminals at Port of Tanger, Marocco and Port of Salalah, Oman. REVENUE AND EBITDA MARGIN To date, we have installed 45 MoorMaster NxG and 31 Power units in deliver innovative systems that Port of Tanger and 32 MoorMaster units in Port of Salahah. These con- meet the evolving needs of the tracts are good examples of how we generate business based on our 200 20 installed base. shipping industry. ” 150 15 We also announced a three-year service agreement with a large 100 10 North American port to provide all services on the shore power systems we have installed. This deal is groundbreaking for us since we will take 50 5 care of the plug in and plug out the power units for the first time. This 0 0 provides us with valuable insights in how we can further improve our products while ensuring that the equipment is operated in the most -50 -5 202220232024 202220232024 efficient way. Revenue, EUR million EBIT margin, % Nicklas Vedin SVP, Head of Ports & Maritime Division 200 8 150 17 6 100 4 50 2 0 0 -50 -2 202220232024 SEGMENTS Ro/Ro, container and other specialised terminals. Today, our advanced shore power systems are integrated into the heart of some of the busiest and most dynamic ports in the world, facilitating the shift towards a more sustaina- ble future. Over 650 container vessels globally are equipped with Cavotec shore power technologies. Our shore power solutions are taking the shipping compliance with the strictest emissions regulations. All our onboard power supply systems comply with IEC/ISO/IEEE 80005-1 standard, ensuring full vessel compatibility while berthing in ports around the world. We provide state-of-the-art technologies for both exis- ting ships, and new-build container and bulk vessels. With to minimise their environmental footprint while berthing in ports. Since the 1980s, we have partnered with shipping technical requirements. 18 SEGMENTS SEGMENT INDUSTRY We improve our customers’ operations across the world Our Industry segment offers solutions that drive productivity and contribute to the customers’ operational efficiency, safety and electrification. Our solutions include motorised cable and hose reels, human operator interface systems, radio remote controls, power connectors, slip rings and spring driven cables and hose reels. We support customers in a wide variety of industrial sectors, such as OUR COMPETITIVE ADVANTAGES PERFORMANCE IN 2024 200 cranes, energy, processing and transportation, surface and underground 20 Our ability to understand end customer needs and present solutions to The order backlog increased 1.4% to EUR 24.1 million (23.8). mining, and tunnelling. Mining and construction are the largest help them improve their operations is undoubtedly our main competitive Revenue decreased -1.5% to EUR 65.0 million (66.0) . Currency 150 15 customer segments. We have worked closely during long time with lead- advantage. With our long experience and knowledge of technical effects had a negative impact of -0.2%. 100 10 ing OEMs in the mining and construction sectors such as Caterpillar, solutions in tough environments such as mines and tunnels, we can EBITDA decreased -8.8% to EUR 2.9 million (3.2) and the EBITDA Epiroc, Sandvik and ThyssenKrupp. 50 5 actively drive the customers’ improvement work. It gives us a unique margin decreased -0.4 percentage points to 4.5% (4.8%). Measures are position and creates long-term relationships that are strengthened by ongoing to improve profitability. 0 0 our broad service offering. -50 -5 As part of our change programs, we have increased our focus in 2024 202220232024 202220232024 on innovation and product development. This has led to us identifying product areas where we see competitive advantages and exciting poten- tial. One area is radio remote controls, where we have a strong position with, among other, world-leading companies that manufacture heavy “ With exciting new products to duty vehicles. Within all these product areas that we have identified, we REVENUE AND EBITDA MARGIN see good opportunities to grow with both new and existing customers. be launched and strong focus on our change programs, we will 200 8 KEY BUSINESS WINS 2024 In late 2022, we launched the world’s first ultra-fast Megawatt Charging strengthen our performance.” 150 6 System (MCS) and by early 2024 it was fully operational at a mining site 100 4 in Australia. The MCS provides up to 4.5 MW of power from a single con- 50 2 nector. At the site in Australia, our MCS is charging a prototype 240- tonne electric haul truck in just 30 minutes. The MCS significantly 0 0 reduces the charging time and is a major industrial breakthrough. -50 -2 At the end of 2024, we deepened our partnership with Qwello by an 202220232024 order for 1,000 spring cable reels for electric vehicle charging stations Revenue, EUR million across Europe. EBIT margin, % Jonathan Eriksson SVP, Head of Industry Division 19 SEGMENTS Our radio remote controls are safe, easy, and customis- able. With our complete radio remote control solutions customers reduce operational costs, increase safety and streamline operations. They are used for applications such as drilling equipment, excavators, cranes, shore power systems and heavy-duty transporters. 20 SEGMENTS New production facility in India to meet growing markets In 2024, we opened a new production facility in Chennai, India. This strategic expansion is aimed at serving both the fast growing domestic market in India and the extensive global market. The new facility is primarily focusing on manufacturing industrial and maritime reels, along with shore power solutions that support sustainable maritime operations. The new facility will function as a supply chain hub supporting our operations across the globe. The inauguration, held on 3 July, 2024 was attended by customers, partners, and representatives, showcasing the facility's manufacturing processes and its alignment with our commitment to meeting customer needs globally. David Pagels, Cavotec’s CEO stated: “This new production facility marks an important milestone for Cavotec as we strengthen our presence in the region. The facility will enable us to serve the large and growing market in India, as well as enhance our ability to deliver innovative and high-quality solutions to our customers locally and globally.” We made the strategic decision in the spring of 2023 to establish production in India. The new facility is scalable and did not require any major investment because the establishment took place in existing premises. 21 SUSTAINABILITY REPORT Sustainability Report In our sustainability work, we engage customers, suppliers, industry peers, and our employees including procurement, HR, Cavotec Management Team and the Board of Directors. 22 SUSTAINABILITY REPORT Sustainability agenda Sustainability drives our business Sustainability is close to our hearts and is the basis of our business. The increasing focus on sustainability in society and not least the rapidly increasing awareness of decarbonisation, drives our business. We respond by weaving this action into our daily work. Sustainability is not only about addressing risks and negative impacts “We have committed to making near term but also about identifying and taking advantage of opportunities and science-based targets to reduce our carbon ABOUT THE SUSTAINABILITY REPORT positive impacts, including those in our value chain. From the start of our The sustainability report covers the financial year 1 January structured sustainability work in 2021, we have continued to formalise footprint in line with the Paris Agreement.” 2024 – 31 December 2024 for Cavotec SA, company registration the scope, content and influence of sustainability topics throughout number CHE-440.276.616, registered in Lugano, Switzerland. our business. The report covers all subsidiaries that are consolidated in the In the autumn of 2024, we conducted a double materiality assess- financial statements, note 3. For questions about how Cavotec ment in accordance with the EU’s sustainability reporting standards works with sustainability, or the sustainability report itself, please (ESRS). The double materiality assessment process carried out involved contact [email protected]. investors, customers, suppliers, Cavotec Management Team, the Board of Directors and employees, and has clarified impacts, risks and oppor- SCOPE OF DATA COLLECTION tunities throughout our value chain. We are, of course, closely following Collected data was expanded in 2024 with Scope 3 carbon emis- the ongoing developments in sustainability reporting within the EU and sions. HR data has for all three years 2022–2024 been collected for companies that are listed in Sweden, to be able to adapt to new regu- from all units, comprising 100% of FTEs. lations in good time. We further integrated our online ESG platform in our reporting work- DATA FOR ENERGY USE flow by gathering emissions related data and ESG data tied to upstream, From 2021 to 2023, we have successively increased the scope downstream, and own stakeholders. This was demonstrated well by our of the energy-use data collected, beginning with sites in seven gathering and input on Scopes 1 and 2 across all entities, covering North John Sorber countries, to now covering all 20 sites in 16 countries and 100% America, Europe, Middle East and Asia Pacific. Head of Sustainability of FTEs. These comprise: Australia, China, Dubai, Finland, France, We have now committed to making near term science-based targets Italy, Malaysia, Netherlands, New Zealand, Singapore, Switzer- under the SBTi (Science Based Target initiative) and our focus in this area land and the US with one site per country, plus Germany, India, during 2024 and 2025 is making a carbon inventory which is as accurate Norway and Sweden with two sites per country. and as complete as possible, allowing us to make fact-based decisions on how to form those targets. This work has and will continue to engage DATA FOR CARBON EMISSIONS customers, suppliers, industry peers, the Board of Directors, and our Emissions from Scopes 1 and 2, plus Scope 3 category 3 origi- employees including procurement, HR and the Cavotec Management nate primarily from energy data. The data sources for Scope 3 Team. emissions have been limited to assure the system of calculation and generate a higher accuracy for the results obtained. For example, the largest Scope 3 emitting category is for embodied carbon of purchased goods and services (category 1), where we have limited the scope of data gathering to material required for specific product families. 23 SUSTAINABILITY REPORT Value chain Our value chain By understanding our value chain, we develop increased insights about potential negative and positive impacts. With that knowledge, we can reduce negative impacts and risks and take advantage of the opportunities. Our main opportunities lie in creating better products together with our suppliers and customers, which deliver both a cleaner and safer society. In carrying out a deeper double materiality assessment in 2024, we UPSTREAM Processing of input goods became increasingly aware of how activities in the value chain are affect- Cavotec has approximately 2,100 suppliers which deliver input goods for Raw materials ing our own sustainability performance. This is most evident in our car- the assembly of our products and other services, though of these only Cavotec’s products include metals and alloys such as steel, copper and bon inventory, showing that Scope 3 emissions (indirect emissions in the around 200 comprise over 80% of our annual spend. The majority of the aluminium as well as rubbers and plastics. In the processes to make and value chain) comprise a significant majority of our total emissions from suppliers are based in Italy, Germany and China. form these materials, various solvents and chemicals are used. Steel is upstream sources. one of the primary materials used in the products, which has a consider- Through conversations with customers and suppliers, we find that OWN OPERATIONS able environmental impact due to the extraction of iron ore and produc- the results of our 2021 simplified life cycle analysis (LCA) still largely hold tion of steel. Sales true, that we make the most significant environmental impact in our Cavotec has sales offices in Australia, China, Finland, India, Hong Kong, upstream value chain. The analysis, made on four product families Refining Norway, Singapore, Sweden, UK, United Arab Emirates, and the US. (Azipod, MoorMaster, Motorised Cable Reels, and Alternative Maritime The raw materials are refined in various processes to become sub-com- Power (AMP)), identified upstream activities from foundries and work- ponents of those which Cavotec purchases. These processes are, for Assembly shops processing input goods, impacting greenhouse gases, energy example, casting, compression moulding, welding and cutting. Several Cavotec has five main production sites, one each in China, India, Italy, use, waste disposal and water consumption. actors can work with the same input before it has reached the stage and two in Germany. These sites predominantly serve their respective where it can be included in Cavotec’s products. regional markets. The Indian site in Chennai was inaugurated in 2024. UPSTREAM OWN OPERATIONS DOWNSTREAM RAW MATERIALS REFINING PROCESSING OF SALES ASSEMBLY SERVICE CUSTOMERS INPUT GOODS BEYOND LIFE CYCLE • Metals • Metalworking Sales offices in Assembly and Inspections, mainte- • OEMs and • Dock workers • Solvents • Electric & electronic • Components made Australia, China, production units in nance and sales and integrators • Sailors • Decomissioning components of metal and rubber Finland, India, Hong China, Germany, Italy, installation of spare • Crude petroleum • Port operators • Machine operators • Recycling • Electric & electronic Kong, Norway, Singa- and India parts. Service centers • Synthetic rubber • Ship operators in mines • Waste components pore, Sweden, UK, and repair shops in • Plastics • Ship builders • Plastic components United Arab Emirates, Europe, Middle East, • Mining operators and the US Asia Pacific and North America • Mining vehicle producers SUPPORT FUNCTIONS LOGISTICS AND DISTRIBUTION LOGISTICS AND DISTRIBUTION Sustainability, Finance, HR, IT, Procurement, Legal & Complaince, Upstream transport and distribution of materials and components Downstream transport and distribution of products and services Marketing and Communication at local, regional and Group levels 24 SUSTAINABILITY REPORT Value chain Service The service organisation supports customers through inspections, maintenance, refurbishments as well as sales and installation of spare parts. Cavotec has service centres with repair workshops in China, Italy, Norway, Singapore, Australia and the US. Parts of the service organisa- tion are based at the customers’ premises and provide operation & main- tenance services. Support functions The support functions are local, regional and at Group level. The support functions include Sustainability, Finance, HR, IT, Procurement, Legal & Compliance, Marketing and Communication. DOWNSTREAM Customers Cavotec has around 3,000 active customers across the globe. Some products are mostly sold to OEMs and integrators. The main end cus- tomer groups are port operators, ship operators, shipbuilders, produc- ers of mining machinery and mining operators. Cavotec’s products are often critical where they are used, where downtime is associated with high costs for the customer and/or end customer and therefore repre- sent a high value add for them. End-users The end-users of Cavotec’s products are mainly sailors, dock workers and machine operators in mines. End-of-life Waste materials of metals, plastics and rubber are generally recycled throughout the value chain. Cavotec’s products, and the products where Cavotec’s solutions are included as a component, often have a long life- time. When the customers’ products, which include Cavotec products, reach the end of their useable life, given that over 90% by mass are metals, the majority of our products’ materials will be remanufactured or recycled. Our improved understanding of the end-of-life phase of our products, is one of our focus points during forthcoming customer dialogues. Logistics and distribution channels Throughout the value chain, sea and land-based transport are priori- tised. Flights are only exceptionally used for smaller components and We are committed to developing and maintaining a workplace where our employees can learn and develop where speed of delivery is crucial to the customer. with the respect and support of their colleagues and managers. 25 SUSTAINABILITY REPORT Stakeholder dialogues Stakeholder engagement Cavotec engages with its stakeholders on a daily basis and in many parts of the organisation. The stakeholders deemed to have the greatest influence on us are employees, customers, suppliers, investors and lenders. Our stakeholders’ views and questions form the basis of our double In general, we understand that both customers and investors see diver- materiality assessment and how we prioritise and work with sustainability sity, equality and inclusion as important social factors in their respective issues. There is strong alignment that climate change and energy use, organisations and hence track this with their stakeholders including fair and safe working conditions and business ethics are at the top of Cavotec. the agenda. Stakeholder How the engagement is organised Purpose Key sustainability topics discussed How the outcome is taken into account by Cavotec Employees Performance and career development reviews, work- To create conditions for high employee motivation Health and safety. Development of skills and Investigating improvements in tracking health and safety. place meetings, employee surveys, internal training, through, among other things, safe workplaces and capacity. Reduction of Cavotec’s carbon footprint Scope 3 carbon emissions including customers’ avoided intranet. Interaction with union representatives. fair working conditions. from its operations and products as well as track- emissions is a focus area. We have implemented a dedi- ing the emissions savings our products facilitate. cated employee engagement system and whistleblowing system for internal and external use. Customers Business meetings, customer events and trainings, To demonstrate the products’ capacity to electrify Cavotec’s ability to contribute to the electrification Cavotec’s business model and strategy is based on the customer service contacts. customers’ operations and reduce emissions of of customers’ operations and reduce their emis- products’ capacity to electrify operations and reduce greenhouse gases, and improve working environ- sions of greenhouse gases, and improve their emissions as well as their contribution to safer working Requests for quotations and procurements. ments for customers. To secure long-term rela- working environment. environments. Receiving surveys for Cavotec to input, highlighting tionships through service agreements. To ensure customer sustainability focus areas. Cavotec’s ability to comply with customers’ Codes of Conduct for suppliers. Suppliers Business meetings and suppliers’ customer surveys. To create conditions for on-time high-quality deliv- Logistics and transportations. Cavotec Supplier’s Business conduct and supplier due diligence processes Events and trainings arranged by suppliers. Customer eries. To ensure the suppliers’ ability to comply Code of Conduct and due diligence checks. have been updated. A new Supplier’s Code of Conduct service contacts. Requests for quotations and pro- with the Cavotec Supplier’s Code of Conduct. aligning with Cavotec’s own Code of Conduct has been curements. sent to suppliers covering 80% of supplier spend. Investors, analysts, CEO and CFO in meetings with shareholders, poten- To create the conditions for continued financing How Cavotec’s offering contributes to electrifica- Cavotec have committed to making near term science- potential investors tial investors and lenders. Presentations at investor and value creation. tion and reduced emissions. Cavotec’s efforts based targets under SBTi (Science Based Targets initia- and lenders meetings and seminars, often arranged by banks. to reduce its own emissions, secure fair working tive). Receiving surveys for Cavotec to input, highlighting conditions and respect human rights. investor sustainability focus areas. 26 SUSTAINABILITY REPORT Double materiality assessment Double materiality assessment During September–November 2024, as the basis for Cavotec’s CSRD reporting from 1 January 2025, we carried out the next iteration of a double materiality assessment to identify which ESG topics and impacts, risks and opportunities (IROs) are material to Cavotec and our value chain. PROCESS FOLLOWED egorised and tracked in a master workbook. The components to the NEXT STEPS Requirements for the scope and execution of the double materiality IROs were numerically assessed, similar to that for a risk assessment, Our DMA results shall inform the development of Cavotec’s sustainabil- assessment (DMA) from the European Sustainability Reporting Stand- and then validated through internal and external stakeholder sessions. ity work onwards. We are, of course, also closely following the ongoing ards (ESRS) with guidance from the European Financial Reporting Advi- Members of the Cavotec Management Team were core to this process developments in sustainability reporting within the EU and for compa- sory Group (EFRAG) were followed, and the process was carried out with to aid top-down engagement and buy-in to the findings of the DMA as nies that are listed in Sweden, to be able to adapt to new regulations in the help of independent external consultants. well as for preparing for implementation though policies, actions, targets good time. Preliminary activities like stakeholder mapping and onboarding, and metrics. desktop analyses of Cavotec’s structure capital and mapping of our Beyond management team involvement in the process, the Board of value chain were carried out. Impacts, risks and opportunities (IROs) Directors has been updated at regular stages and is fully behind the were identified through stakeholder interviews which were recorded cat- DMA outcomes. 1. INITIALISATION 2. IDENTIFY IROs 3. ASSESS IROs 4. VALIDATION 5. DOCUMENTATION 6. MANAGEMENT APPROVAL • Identification of structure capital • Hypotheses of IROs “hotspots” • Refine IROs through stakeholder • Prepare pre-read materials for • Cross reference information • Validate results with senior • Define DMA’s reporting boundary based on knowledge of industry/ engagement validation sessions needed under ESRS2 stakeholders • Map value chain sector, business model, value • Pre-assessment of IROs • Execute internal validation • DMA process and results • Obtain CMT and Audit Committee • Pre-screen out of sustainability chain • Refine the assessment (scoring) • Compile and distribute results for endorsement matters • Execute interviews/meeting for with stakeholders review • Consider sector- or entity- IRO input • Execute external validation specific sustainability matters • Describe identified IROs • Align financial materiality to the risk management system • Stakeholder engagement process and onboarding of representa- tives for involvement 27 SUSTAINABILITY REPORT Governance Sustainability governance Sustainability related work covers all parts of the Group and involves all employees as well as the Board of Directors, suppliers and engagement with customers. The highest governing body accountable for sustainability performance The Code forms the basis of Cavotec’s operations and includes pro- ments. The SCoC refers to several internationally recognised conventions is the Board of Directors. The Board is accountable for evaluation, strat- tection of human rights, social issues, employee-related issues such as and principles: egy, risk control and goal setting in the area of sustainability. The CEO is fair employment and safe working conditions, responsible management • Basel Convention on the Control of Transboundary Movements of responsible for execution of the strategy, follow-up and measures as well of environmental issues, high ethical standards, and quality. The Code Hazardous Wastes and their Disposal, as risk management. The CEO delegates responsibility for execution of applies to all employees in the Group, including Board members. Sus- • Convention on Biological Diversity, specific areas to people in the Cavotec Management Team. The CFO is tainability related work covers all parts of the Group and involves all • Globally Harmonized System of Classification and Labelling of responsible for sustainability issues related to climate, environment and employees as well as the Board of Directors plus stakeholders in the Chemicals, reporting and has delegated these areas to the Head of Sustainability. value chain. The Code is available on Cavotec’s intranet and external • International Bill of Human Rights, The Chief Legal & Human Resources Officer is responsible for business website cavotec.com. • International Labour Organization’s (ILO) Declaration on Fundamental ethics, compliance and HR. Principles and Rights at Work, Historically, sustainability data has been collected once a year, evalu- MANAGEMENT SYSTEMS AND CERTIFICATIONS • Minamata Convention on Mercury, ated by the Cavotec Management Team and reported to the Board An element of the Group’s continuous improvement work is the use of • OECD Due Diligence Guidance for Responsible Supply Chains together with action plans if deemed necessary. management systems. By the end of 2024, there were six active certifi- of Minerals from Conflict-Affected and High-Risk Areas, The composition of the Board and Cavotec Management Team cations covering ISO 9001 Quality Management Systems and ISO 14001 • OECD Guidelines for Multinational Enterprises, including the respective members’ experiences and backgrounds are Environmental Management Systems. The operations at both sites in • Responsible Minerals Initiative, described in the Corporate Governance Report. Overath and Hausen, Germany are certified under ISO 9001. The opera- • Rio Declaration on Environment and Development, tions in Shanghai, China, became ISO 9001 and ISO 14001 certified in • Science Based Targets initiative, POLICIES 2021. The operations in Milan, Italy, have been ISO 9001 certified since • Stockholm Convention on Persistent Organic Pollutants (POPs), Policies regarding sustainability governance including the Cavotec 2001 and ISO 14001 certified since 2022. No management systems are • UN Convention Against Corruption, Group Code of Conduct (the Code) are our guiding principles for how the result of legal requirements. • UN Framework Convention on Climate Change (UNFCCC), Cavotec operates in line with our corporate values. They are communi- • UN Global Compact (UNGC) - the ten principles on Human Rights, cated to employees through Cavotec’s intranet. Each manager is SUPPLIER’S CODE OF CONDUCT Labor, Environment and Anti-Corruption, responsible for ensuring that all employees, consultants, Directors and The Supplier’s Code of Conduct (SCoC) sets out the basis of Cavotec’s • UN Guiding Principles on Business and Human Rights (UNGPs), others working on behalf of Cavotec are aware of their relevant respon- responsible sourcing approach and defines the minimum standards that • UN Universal Declaration of Human Rights. sibilities under these documents and that they abide by them. This is suppliers must respect when doing business with Cavotec. The SCoC done through engagement with these stakeholders, training and due dili- covers, among other things, respect for human rights and fair labour POLICIES REGARDING SUSTAINABILITY GOVERNANCE gence activities for value chain stakeholders. practices, health and safety, environment, business ethics as well • Anti-Fraud Policy The effectiveness of these policies is continually assessed and reporting requirements. It is applicable to all major suppliers including • Anti-Bribery and Corruption Policy revised when the desired outcomes are to be improved and when they their corporate bodies, employees, representatives, subcontractors and • Cavotec Group Code of Conduct need realigning with Cavotec’s direction of development. Extra focus on sales partners. • Environmental Policy this will be made during 2025 as a result of our double materiality The SCoC has been revised in 2024 and sent for signature by suppli- • H&S Policy assessment outcomes, both for existing policies and where new ones ers covering 80% of the average volume spend, whereby they commit to • Gifts and Entertainment Policy are needed. All revised policies as well as new ones, are adopted by the adopt and comply by its requirements. The revision was made to align • Group Code of Conduct Cavotec Management Team. with the Cavotec Group Code of Conduct and to impose upstream, the • Supplier’s Code of Conduct requirements made on Cavotec by its most stringent customer require- • Whistleblower Policy 28 SUSTAINABILITY REPORT Environmental and climate impact Environmental and climate impact Climate change is one of the major challenges facing the world today and we are determined to play our role in promoting climate mitigation and adaptation. Resource efficiency and circularity are also intrinsic factors to our business. The main environmental impacts of Cavotec’s operations and our prod- GHG EMISSIONS ENERGY CONSUMPTION ucts’ lifecycles include energy consumption and resulting greenhouse We want to contribute to climate mitigation, not only by providing prod- MWh 2024 2023 2022 gas emissions, natural resource use in our products, and waste genera- ucts which enable our customers to reduce their emissions, but also Fuels including gas, petrol and diesel 1,567 1,441 1,467 tion. We are committed to limiting the negative environmental impacts through reductions in our own operations. Energy use is the primary Electricity 1,868 2,032 2,489 from our operations, our supply chain, and our products and services, contributor to greenhouse gas emissions from our own operations. which is expressed in our Environmental Policy. We apply the precaution- – of which non-renewable 1,320 1,400 1,594 The emissions inventory in this section covers the atmospheric ary principle to situations where harm may be done to the environment – of which renewable 547 631 895 emissions of all six greenhouse gasses (GHGs) as prescribed in the GHG or human health, following legislation and international initiatives. Renewable electricity share of total Protocol and are harmonised into the unit of tonnes of Carbon Dioxide electricity consumption 29% 31% 36% ENERGY USE District heating 200 197 1) 200 1) Ecoinvent (3.11), Exiobase 3.9 (2019), IEA (2024), NTMCalc.Advanced From 2021 to 2023, we increased the scope of the energy-use data col- 4.0, and suppliers themselves. Total energy consumption 3,635 3,595 4,081 lected, beginning with sites in seven countries, to now cover 100% FTEs Energy consumption/ net sales (kWh/kEUR) 0.02078 0.01989 0.02760 and all 20 sites in 16 countries with physical premises. These comprise: Commitment to set SBTi emission reduction targets Australia, China, Dubai, Finland, France, Italy, Malaysia, Netherlands, New Cavotec has officially made a commitment under the SBTi Commitment Zealand, Singapore, Switzerland and the US with one site per country, process to set science-based emission reduction targets. This gives us plus Germany, India, Norway and Sweden with two sites per country. ENERGY PRODUCED, CONSUMED AND SOLD 24 months in which to develop science-based targets aligned with the In an attempt to reduce our dependency on non-renewable energy MWh 2024 2023 2022 SBTi Criteria and submit them to the SBTi for validation, however we aim sources, we have invested in geothermal energy and photovoltaic elec- Total renewable energy produced 2,877 2,689 310 to submit the targets before this full time has elapsed. This work will be tricity in our largest facility in Italy. The photovoltaic system on the roof the foundations for a Climate Transition Plan. – of which geothermal for heating and covers approximately 34% (30%) of the facility’s total electricity cooling 2,640 2,389 – consumption. – of which photovoltaic for electricity 237 300 310 Scopes 1 and 2 In 2024, 29% (31%) of Cavotec’s electricity consumption came from Scope 1 covers direct emissions from the combustion of fossil fuels Total renewable energy produced and renewable energy and 161 (180) MWh was sold back to the grid. The consumed 2,829 2,635 274 in mobile and stationary equipment we own or control, primarily from trend however over 2022-2024 shows a successive reduction in renew- – of which geothermal for heating and company vehicles and generators. able electricity share which is largely due to the grid makeup of our cooling 2,640 2,389 – Scope 2 covers indirect emissions from purchased electricity and electricity contracts at various sites. In line with our SBTi commitments, – of which photovoltaic for electricity 189 246 274 district heating and cooling. we will actively review options for increasing that share when contract The Scope 1 and 2 emissions published in this inventory come from Total energy produced and sold 161 180 166 renewals arise. energy use and therefore comprise those used in all sites in 16 countries – of which renewable 48 54 36 and all employees. – of which non-renewable 113 126 130 1) Corrected figures for 2022 and 2023 by adding estimated 75MWh based on 2024 usage from district heating in Finland site. 29 SUSTAINABILITY REPORT Environmental and climate impact Scope 3 WATER USAGE AND DISCHARGE Scope 3 emissions cover all upstream and downstream emissions in the COe tonne 2024 Megalitres, unless otherwise stated 2024 2023 2022 value chain emissions, which are further broken down into 15 categories, Category 1 Purchased goods and services 6,558 1) Water usage 4.51 4.23 2.51 according to the GHG Protocol. Our Scope 3 emissions screening is well Category 2 Capital goods 554 2) Water discharge 4.51 4.23 2.51 underway with the results of the initial inventory shown below. As is praxis for the presentation of emissions inventories, we make a Category 3 Fuel and energy-related activities Water usage/net sales (m 3 /kEUR) 0.0258 0.0234 0.0170 (not in Scope 1 and 2) 223 3) balance between the completeness and accuracy of the presented data Water discharge/net sales (m 3 /kEUR) 0.0258 0.0234 0.0170 and we only consider the categories which are deemed significant to our Category 6 Business travel 665 4) business, which are currently 1, 2, 3, 6, and 7. Category 7 Employee commuting 427 5) We follow a strategy whereby we establish the systems of measure- WASTE MANAGEMENT ment of these emissions first, meaning that we compromise the com- Similar to that of water management, since Cavotec’s industrial opera- pleteness of the emissions disclosed in scope 3 in favour of the WATER MANAGEMENT tions primarily assemble purchased components rather than form them accuracy, so that we can with confidence stand by the disclosed figures. Cavotec’s industrial operations comprise primarily the assembly of or put finishes on them, our assembly waste generation is limited. We Consequently, as we work to increase the completeness of the dis- pre-formed and finished components made from metals, plastics and however acknowledge the societal need for a transition to a circular closed categories, our baseline emissions will increase. We shall follow rubbers. Whilst we acknowledge that fresh water is becoming an economy, viewing all materials including waste, as resources, and doing the established system from the GHG Protocol to manage this in parallel increasingly scarce resource, water consumption and discharge are so from a lifecycle perspective with carrying out our emission reduction target generation under SBTi, not material impacts in Cavotec’s operations. Instead, these impacts lie Beyond the limited assembly waste from for example, cable offcuts, and reduction activities. primarily further up the value chain under suppliers with whom Cavotec we generate waste in our facilities from supplier packaging and general In the footnotes to this section, we describe the scope of the data does not have business relationships. We nonetheless foster responsi- waste from offices, though we take the initiative to reuse supplier pack- within each category and the method used, particularly where it was ble water stewardship in all our sites by monitoring water use and ensur- aging where we can, when shipping our products. necessary to make a departure from that prescribed in the GHG ing discharges are treated correctly, Protocol. For our own operations, the primary use of water is for sanitary pur- CIRCULARITY AND REDUCTION OF RESOURCES poses and drinking water. However, the geothermal energy for our Italian Looking upstream, the reduction in dependency on virgin raw materials site utilises water which is controlled regularly and follows all legal embodied in the components we purchase will also reduce our scope 3 requirements. category 1 emissions from purchased goods and services as this will COe tonne 2024 2023 2022 From 2022 to 2024, we have increased the scope of the water data reduce emissions from extraction and primary processing. It highlights Scope 1 307 286 233 collected beginning with sites in six countries, to now cover all 20 sites in the necessity for close collaboration with suppliers. Scope 2 828 842 1,025 16 countries with physical premises. The measured and monitored data Steel comprises over 75% of our products’ material composition, Total Scope 1–2 1,135 1,128 1,258 comprise 84% of the total water consumption and discharge, with the which has a considerable environmental impact due to the extraction of Total Scope 1–2/net sales remainder being estimated using a dedicated water calculator. iron ore and steel production process. We review steel suppliers using (tCOe/kEUR) 0.0065 0.0060 0.0085 increased proportions of recycled steel content as well as those prior- Scope 3 8,427 202 338 itising greener and low-carbon extraction and production methods. Total Scope 1–3 9,562 1,330 1,596 Once these upstream activities become more established, we will Total Scope 1–3/net sales look downstream to better evaluate and then be able to influence the (tCOe/kEUR) 0.0547 0.0074 0.0108 end-of-life phase of our products. The evaluation and interventions available to us are heavily dependent on our knowledge of, and extent of our business relationships through to the end-user. We are improving downstream visibility through enhanced due diligence activities. *Scope 3 category 3 emissions only. 1) Average-data method used, collecting the mass of different materials used in products ordered in 2024. Mass of materials are approximated by applying the same 4) Supplier-specific method with emissions received from our travel agent. Considers only employee flights purchased over 2024, from our US and European material breakdown from a representative product family variant to all variants in that family, ordered in 2024. Product families considered for 2024 are: MoorMaster, companies. Emissions calculated using the IATA RP-1726 model including radiative forcing effects specified from UK BEIS. PowerMove, connectors, hose reels, motorised cable reels (MCRs), and spring cable reels (SCRs). 5) Distance-based method used, deriving from a company-wide survey, with 120 respondents. Data extrapolated to represent all Cavotec employees, in accordance 2) Spend-based method used, collecting the cost of capital goods purchased over 2024 and then categorised to an extent where the same emission factors were with GHG Protocol. applied to all capital goods in each category. 3) Average-data method used, with emissions deriving from fuel and energy data sources entered for Scope 1 and 2 emissions. 30 SUSTAINABILITY REPORT Caring for our people Caring for our people Attracting skilled, open, and curious people is fundamental to an engineering company like Cavotec. For 50 years, we have pioneered innovative solutions and are dedicated to continuing our value creation. With global presence, we reap the benefits of our cultural differences to create an understanding organisation with motivated employees. Cavotec is a global company with sites in 16 countries and has there- fore created a model where the HR organisation is embedded in all local Cavotec’s Code of Conduct strictly prohibits direct and indirect forms operations. The directions are given at Group level and relayed in the of discrimination and harassment of any kind. This includes, but is not regions by HR business partners who support leaders locally. HR is limited to, discrimination based on age, ethical and cultural back- furthermore supported by Finance and administrative functions at each ground, gender, religion, sexual identity, disability, race, colour, political location, who are responsible for the day-to-day implementation and opinion, social origin, social status, indigenous status, union member- upholding of our HR practices and processes. ship or employee representation and any other characteristic pro- At the end of 2024, 216 (181) FTEs were covered by collective tected by local law, as applicable. In 2024, no cases of discrimination agreements, which constitutes 30% (27%) of the total FTEs. Of the total were reported in the organisation. number of employees, permanent employees make up 96% (94%), and full-time employees 98% (98%). At year-end, Cavotec had 9 (4) FTEs OUR CORPORATE VALUES who are not employees (consultants, interns or volunteers). Our success rests on our core values: Integrity, Accountability, Perfor- Women are underrepresented and make up only 16% (18%) of the mance, and Teamwork. We are committed to developing and main- total FTEs. We actively work to attract more women to Cavotec but taining a workplace where our employees can learn and develop with since our policy is to employ the best person for any job on a basis of the respect and support of their colleagues and managers. Our open, merit for the role, a challenge remains when employing for engineer- non-hierarchical working environment encourages the free exchange ing-related jobs in countries which demonstrate a more traditional of ideas and mutual respect between individuals that underpin our gender split towards certain sectors of work. unique capabilities as a leading engineering group. Regardless of where We at Cavotec are governed by our respect for human and labour they work, we want our people to feel safe and develop a sense of rights. We comply with international, national and industry-related laws, belonging that will fuel our success in being a leader in decarbonising guidelines and collective agreements relating to working conditions, and increasing safer maritime and industrial activities around the globe. working hours and compensation. We respect and promote fairness, and the right of each employee to a safe working environment where all EMPLOYER ATTRACTION employees are treated with dignity and respect. Employees with com- For Cavotec to remain innovative and competitive, we need to attract, parable qualifications, experience and performance will receive equal develop, and retain top-talent. We believe that our purpose of bring- pay for equal work with respect to those performing similar tasks under ing high-quality solutions that drive the sustainability transition of our Our employees, located in some 30 countries around similar working conditions and similar output. The different backgrounds, customers, both regarding decarbonisation and safety, can attract the world, represent a large number of cultures, and experiences and opinions of our employees enrich our expertise, pro- talented engineers that want to make a difference. Beyond offering provide customers with local support, backed by our mote local and cultural understanding, and drive innovation and growth. competitive salaries, we understand that the key to retaining our global network of engineering expertise. employees is to focus on health and safety, to be a responsible employer, and to offer programmes for career development. 31 SUSTAINABILITY REPORT Caring for our people EMPLOYMENT BY CONTRACT, TYPE AND GENDER 2024 2023 2022 FTEs at 31 December Women Men Total Women Men Total Women Men Total Permanent 108 575 683 111 516 627 103 459 562 Temporary 4 21 25 7 30 37 9 60 69 Full-time 102 591 693 112 541 653 109 518 627 Part-time 10 5 15 6 5 11 3 1 4 Total FTEs 112 596 708 118 546 664 112 519 631 Percentage of total FTEs 16% 84% 100% 18% 82% 100% 18% 82% 100% EMPLOYEES BY REGION AND CONTRACT 2024 2023 2022 FTEs at 31 December Permanent Temporary Total Permanent Temporary Total Permanent Temporary Total Asia 180 14 194 159 23 182 129 39 168 Europe 415 4 419 390 11 401 361 29 390 North America 34 1 35 27 0 27 28 0 28 Middle East 3 2 5 2 0 2 2 0 2 Oceania 51 4 55 49 3 52 42 1 43 Total 683 25 708 627 37 664 562 69 631 EMPLOYEES BY FUNCTION AND AGE 2024 2023 2022 Age Age Age Age Age Age Age Age Age FTEs at 31 December, % Women Men <30 30-50 >50 Women Men <30 30-50 >50 Women Men <30 30-50 >50 Cavotec Management Team 17 83 0 33 67 14 86 0 43 57 14 86 0 33 67 Division Management Teams and Group functions 21 79 0 66 34 15 85 0 70 30 19 81 0 67 33 Remaining employees 15 85 12 65 23 18 82 8 66 25 18 82 10 65 25 Total 16 84 11 65 24 18 82 8 66 26 18 82 10 64 26 PERFORMANCE REVIEWS 2024 2023 2022 FTEs at 31 December, % Women Men Total Women Men Total Women Men Total Cavotec Management Team 100 100 100 100 100 100 100 100 100 Division Management Teams and Group functions 100 100 100 100 100 100 100 100 100 Remaining employees 78 81 81 83 84 93 73 79 78 Total 81 83 83 85 84 84 74 81 79 32 SUSTAINABILITY REPORT Caring for our people NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER 2024 2023 2022 New employee Employee turnover New employee Employee turnover New employee Employee turnover FTEs Hires % of total FTEs Turnover % of total FTEs Hires % of totalFTEs Turnover % of total FTEs Hires % of total FTEs Turnover % of total FTEs Women 22 3% 19 3% 33 5% 28 4% 37 6% 38 6% Men 96 14% 74 10% 116 18% 88 14% 171 27% 142 23% Age <30 26 4% 11 2% 34 5% 18 3% 52 8% 33 5% Age 30–50 77 11% 63 9% 98 18% 74 12% 128 20% 110 17% Age >50 15 2% 19 3% 17 3% 24 4% 28 4% 37 6% Asia 39 5% 26 4% 52 8% 22 3% 97 15% 62 10% Europe 50 7% 43 6% 72 11% 74 12% 99 16% 104 16% North America 12 2% 8 1% 4 1% 8 1% 6 1% 2 0% Middle East 1 0% 0 0% 0 0% 0 0% 0 0% 1 0% Oceania 16 2% 16 2% 21 3% 12 2% 6 1% 11 0% Total 118 17% 93 13% 149 22% 116 18% 208 33% 180 29% OCCUPATIONAL INJURIES 2024 2023 2022 Number of employees/ Rate in relation to Number of employees/ Rate in relation to Number of employees/ Rate in relation to FTEs number of non-employees total worked hours number of non-employees total worked hours number of non-employees total worked hours Fatalities due to work related injury 0/0 -/- 0/0 -/- 0/0 -/- High consequences injury 0/0 -/- 0/0 -/- 0/0 -/- Recordable injury 9/0 0/- N/A N/A 1/0 0/- The rate is based on 200,000 worked hours. OCCUPATIONAL HEALTH AND SAFETY Cavotec is committed to providing a safe and healthy working environ- work activities. Safety walks are conducted at each production site on a Each issue is recorded, and the staff is informed when a corrective ment for all its employees. We integrate health and safety in the manage- regular basis. When safety improvements are identified during these action has been implemented and proven efficient. In addition to weekly ment of our business to prevent accidents and to protect people at walks, employees are invited to record the safety improvements and safety rounds, the facility engages in a regionally promoted “Work-health work, with a vision of zero work-related accidents. share them. We recognise that personnel working at customer sites Program” that encourages health initiatives. Following the progress of Overall, Cavotec’s operations do not involve high safety risks, and the such as ports, shipping terminals and mines are exposed to added risks. this facility, we are working to implement efficient measures at our other Operations function handles smaller cuts and other incidents that can be These situations are managed through making risk-assessments, giving sites in all our countries of operation, ensuring state of the art occupa- treated on-site using first aid kits. Cavotec has a robust set of procedures training, making method statements and providing appropriate protec- tional health and safety across the Cavotec organisation. and standards to reinforce a strong health and safety culture across the tive equipment. In 2024, we had 0 (0) non-fatal or fatal injuries arising out of or in the organisation. Any shortcomings in health and safety management are Cavotec’s ambition is to certify all assembly and production facilities course of work such as amputation of a limb, laceration, fracture, hernia, reviewed, and the Group learns from experience to improve performance. to ISO 45001 or similar standard and follow appropriate procedures at all burns, loss of consciousness, and paralysis, among others. Cavotec has Cavotec continuously assesses the operational health and safety aspects other sites as necessary. not gathered information about injuries in 2024 which relate to for exam- of its operations, processes, and services, and acts upon safety improve- Cavotec’s largest facility is in Italy, with 181 FTEs. This is ISO 45001 ple minor burns, falls and smaller cuts. ments and incidents in accordance with our escalation procedure. certified and procedures such as weekly safety walks are carried out. If a Given the Group’s global presence and varied operations, Cavotec health and safety hazard is identified during a weekly safety walk, appro- tailors its occupational health and safety routines to suit each site and priate corrective actions are taken, by for example creating a work group. 33 SUSTAINABILITY REPORT Business ethics Contribution to the UN SDGs Business ethics To be the business partner of choice for customers and suppliers, we must uphold a high level of business ethics. For us, Our contribution to the UN SDGs business ethics means managing our business like a good citizen would, including through responsible tax management. Through Cavotec’s product, service, and business offerings, we contribute to the UN Sustainable Development Goals. Our contribu- tions are clearest under specific targets of five of the 17 SDGs. The Group Code of Conduct sets the standard for how Cavotec con- DATA AND INFORMATION SECURITY ducts its business, both ethically and in accordance with applicable laws In today’s digital world, a responsible business needs to reduce risks Target 7.2 means that by 2030, the share of renewable and regulations. The Code is supported by inter alia, our Anti-Bribery related to cyber security and data privacy. Information is a valuable asset energy in the global energy mix must have increased signifi- Policy, Anti-Fraud Policy and our Gifts and Entertainment Policy. to Cavotec and we exercise care when handling, receiving and storing cantly. We contribute to this development by, for example, installing We have a zero-tolerance policy towards all forms of corruption. To sensitive information from customers, suppliers and other stakeholders. shore power connections in vessels and electrifying cable reels. In build capacity and knowledge of corruption and fraudulent behaviour, all Further, Cavotec respects the privacy of all individuals and the confiden- this way, we increase the enablement for our customers and their employees receive regular training and updates on our internal policies. tiality of any personal data that we hold about them. Cavotec commits to customers in turn, to use renewable energy. Training sessions covering issues such as anti-trust and anti-bribery, are continuously improving data and information security and to proactively Target 8.8 means that workers’ rights must be protected, carried out on a bi-annual and/or on-demand basis. It is the responsibil- reduce risks. Through our Group Code of Conduct, employees are and safe and secure working environments must be pro- ity of each employee to read, understand and comply with the policies. informed on how to handle data and information. Any data breaches are moted for all workers. Through, for example, our automatic mooring We are committed to combating all forms of corruption and acting pro- reported and appropriately escalated. solutions, we contribute to improving working conditions for sailors fessionally and fairly in all our business activities and relationships, wher- Early in 2024, a cyber incident occurred which incurred some costs and dock workers. Another example is the use of shore power solu- ever we operate. Our process for managing anti-bribery and and delayed certain deliveries in the second and third quarters. The inci- tions, which help improve working conditions by reducing noise and anti-corruption is governed by internal policies, and we evaluate all dent was detected quickly, controlled and closed out. Cavotec has since diesel fumes. potential business expansions from a bribery and corruption perspective, made robust investments in IT security to reduce the risk of future inci- where we conduct third-party due diligence when high risks are identi- dents occurring. Target 9.4 means that infrastructure and industries must be fied. It is the responsibility of all those working with us to prevent, detect upgraded and modernised by 2030 to make them sustaina- and report any kind of corruption, bribery, or other forms of unethical TAX MANAGEMENT ble, with increased resource-use efficiency and greater introduction business conduct. Tax matters are discussed with the Audit Committee and governed by of clean and environmentally friendly technologies and industrial In 2024, there were no legal actions regarding corruption, anti-com- the Tax Policy. Cavotec’s approach is to improve tax efficiency by using processes. We contribute to the target by retrofitting and equipping petitive behaviour or violations of anti-trust and monopoly legislation. tax credit initiatives offered in the different countries where the Group vessels and cranes with electrical solutions that significantly operates. reduce greenhouse gas and other emissions. Through our charging WHISTLEBLOWER FUNCTION Cavotec and its subsidiaries pay tax in the countries where value is solutions, we make it possible for the mining industry to, among Following a project initiated in late 2024, Cavotec has now installed a generated in accordance with local tax laws and regulations. Cavotec other things, electrify heavy-duty trucks. whistleblower function called the Cavotec Business Ethics Reporting does not engage in aggressive or artificial transactions whose sole or Hotline. The service is available to employees and external stakeholders main purpose is to create a tax advantage. If there is more than one way Target 11.6 means that the cities’ negative environmental – previously whistleblowing was only available to employees through to structure a transaction, Cavotec may optimise its tax situation by impact per capita must be reduced by 2030, with special our intranet. This function can be accessed through the website choosing the option that achieves the Group’s commercial objectives attention to air quality and municipal and other waste management. Cavotec.ethicspoint.com or Cavotecmobile.ethicspoint.com for mobile with the lowest tax expense. We contribute to the goal through our electrification solutions users and these sites are linked from our website at Cavotec.com. Cavotec’s tax declarations must be submitted on time and comply which have zero tailpipe emissions and reduce noise in ports and The whistleblower function is made available through an independent with relevant tax laws and regulations. Any material errors or omissions terminals. In this way, urban environments near ports and terminals provider to assure any potential reporters of the genuinity of reporting that are discovered in tax declarations must immediately be reported to are improved where our products are used. anonymously, if they so choose this option. Any reporters under the relevant tax authorities. Cavotec’s responsibility, such as employees, are always protected Taxes must be paid when due. Tax inquiries and audits by the authori- Target 16.5 means that corruption and bribery in all its forms against retaliation, as governed by our Code of Conduct. ties must be answered openly and honestly and in a timely manner. All must be significantly reduced. We contribute to the goal by Group companies must have an updated transfer pricing policy that having zero tolerance for corruption and bribery in all parts of our follows OECD guidelines. value chain. 34 CORPORATE GOVERNANCE Corporate Governance Our automated mooring solutions enable faster turnaround times and the reduced cruising speeds result in decreased energy consumption. During ship berthing, the reduced use of tugs and ship engines results in more than 90% reduction in emissions. 35 CORPORATE GOVERNANCE Remuneration report Remuneration report 2024 A. REMUNERATION GOVERNANCE AND PRINCIPLES The key provisions of the Articles of Association are summarised below: With respect to the FY2023 and FY2024, the following was implemented: 1. Shareholder engagement • Votes on remuneration (Article 16b): Every year, the Company’s annual At the 2023 AGM held on 1 June 2023, shareholders approved (i) a maxi- The articles 734 et seq. CO of the Swiss Code of Obligations (“CO”) general meeting (the “AGM”) votes separately and bindingly on the mum aggregate amount of EUR 0.5 million for the remuneration for the require listed companies incorporated in Switzerland to publish a remu- maximum aggregate remuneration of the Board for the term of office Board for the term of office from the 2023 AGM to the 2024 AGM; and (ii) neration report. until the next AGM and on the maximum aggregate remuneration of the a maximum aggregate amount of EUR 2,200,000 for the remuneration Cavotec SA (the “Company” or “Cavotec”) is a Swiss incorporated Management Team (fixed and variable components) for the subse- for the chief executive officer (the “CEO”) for the FY2024 year started company listed on Nasdaq Stockholm, Sweden. The corporate govern- quent financial year. 1 January 2024, and ended 31 December 2024. ance of Cavotec is therefore based on both Swiss and Swedish rules • Loans and credits (Article 16j): Loans and credits may not be granted At the 2024 AGM held on 4 June 2024, shareholders approved (i) a and regulations, including the CO and the Swedish Code of Corporate to members of the Board or of the Management Team. maximum aggregate amount of EUR 0.5 million for the remuneration for Governance (Sw. Svensk kod för bolagsstyrning). • Additional amount for newly appointed members of the Management the Board for the term of office from the 2024 AGM to the 2025 AGM; (ii) This remuneration report (the “Remuneration Report”) for the finan- Team (Article 16c): If the maximum aggregate remuneration already a maximum aggregate amount of EUR 2,800,000 for the remuneration cial year 2024 (FY2024) has been prepared in accordance with articles approved by the AGM is not sufficient to cover the remuneration for for the Management Team for the FY2024 year started 1 January 2024, 734 et seq. CO and describes, inter alia, Cavotec’s compensation sys- newly appointed members of the Management Team, the Company and ended 31 December 31 2024, not including the maximum aggregate tem and philosophy, and provides details of the remuneration paid to the may pay an additional amount up to 100% of the last maximum aggre- remuneration amount of EUR 2,200,000 for the CEO for the FY2024 year Company’s board of directors (the “Board”) and to the members of the gate remuneration amount approved. that has already been approved by the 2023 AGM; and (iii) a maximum Company’s management team (the “Management Team”) in 2024. aggregate amount of EUR 5,000,000 for the remuneration for the Man- Under the CO, the maximum aggregate remuneration for the mem- In line with the above, the Board will submit three separate remunera- agement Team (including the CEO) for the FY2025 year that started bers of the Board and of the management team is subject to approval tions related proposals for shareholder approval at the 2025 AGM as 1 January 2025 and that will end on 31 December 2025. by the general meeting of shareholders upon proposal by the Board. In illustrated in Table 1 below: addition, certain matters relating to remuneration must be governed by • This Remuneration Report for the FY2024 (consultative vote). 2. Governance on remuneration matters the Company’s articles of association (the “Articles of Association”), • The maximum aggregate remuneration amount for the Board for the The decision authority on remuneration matters is summarised in including the details of such votes on remuneration and the principles term of office from the 2025 AGM to the 2026 AGM (binding vote). Table 2. governing remuneration. The Articles of Association include these mat- • The maximum aggregate remuneration amount for the Management The current members of Cavotec’s remuneration committee (the ters regarding remuneration in Articles 16a et sec. and can be viewed Team for the FY2026 starting January 1, 2026, and that will end on “Remuneration Committee”) are Keith Svendsen, Patrik Tigerschiöld and online at https://ir.cavotec.com. December 31, 2026 (binding vote). Peter Nilsson (the latter as chairman; the “Chairman of the Remuneration Committee”). Members of the Remuneration Committee are elected annually and individually by the shareholders at the respective AGM. The Chairman of the Remuneration Committee reports to the full Board after each Remu- neration Committee’s meeting. The minutes of the meetings are made available to the members of the Board. The CEO and Cavotec’s chief human resources officer (CHRO) attend the Remuneration Committee’s Object Action at 2025 AGM 2025 2026 2027 meetings in an advisory function but are excluded from certain discus- Remuneration report 2024 approval of the 2024 Remuneration report sions. The Remuneration Committee may decide to consult an external advisor on specific remuneration matters. Board remuneration 2025/26 approval Board remuneration for 2025 AGM to 2026 AGM (term of office) Management Team approval of the Management Team Remuneration 2026 Remuneration for the FY2026 Beginning AGM Beginning AGM Beginning AGM of the June of the June of the June FY Jan 01 FY Jan 01 FY Jan 01 36 CORPORATE GOVERNANCE Remuneration report Remuneration Committee Board AGM Remuneration principles (Articles of Association) Recommends to the Board Proposes to the AGM Approves Remuneration report Recommends to the Board Proposes to the AGM Approves Remuneration principles and system for the Board and the Management Team (inc. CEO) Recommends to the Board Proposes to the AGM Approves Maximum aggregate amount of the remuneration for the Board members Proposes to the Board Proposes to the AGM Approves Maximum aggregate amount of the remuneration of the Management Team (inc. CEO) Proposes to the Board Proposes to the AGM Approves 3. Activities of the Remuneration Committee during FY2024 The Remuneration Committee meets as often as business requires but at least once per year. The Remuneration Committee held five meetings Base fee EUR Committee fee in EUR Chair Member in the FY2024. Patrick Tigerschiöld (Chairman) 95,000 Audit Committee 10,000 5,000 The Remuneration Committee has the following duties and competences: Member 35,000 Remuneration Committee 10,000 5,000 • Reviewing and advising the Board on the terms of appointment of the CEO. • Reviewing working environments and succession planning for the CEO Base fee Chair Member and other members of the Management Team. Patrick Tigerschiöld (Chairman) 90,499 Audit Committee 9,526 4,763 • Reviewing the terms of the employment arrangements with the CEO Member 33,342 Remuneration Committee 9,526 4,763 and other members of the Management Team so as to develop con- sistent group-wide employment practices subject to regional EUR/CHF exchange rate 0.9526257 differences. • Reviewing of and making proposals to the Board on the remuneration of the members of the Board and of the Management Team. • Reviewing the terms of the Company’s short- and long-term incentive plans. Fixed pay Variable pay • Submission of a draft of the Remuneration Report to the Board. Base Salary Pension & other benefits Short-term incentive plan (STIP) Details on Remuneration Committee’s members and their meeting attendance are provided in Cavotec’s Corporate Governance Report Purpose Attract and retain Risk protection, Market competitiveness Focus on the delivery of the year’s commitments on page 43. Performance period 1 year Key drivers Role, responsibility, Legal requirements & market practice Group, Division and personal performance (if relevant) 4. Remuneration principles experience Cavotec’s remuneration programs are designed to recognise and reward Reward instrument Cash Pension, insurance plans and cash Cash performance, enabling the organisation to attract, motivate and retain talented employees who drive performance to ensure both sustained KPIs – Revenues, EBIT, Cash flow growth and value creation. Target incentive 80% of base salary for the CEO, 40% of base salary for The compensation of the members of the Board and of the Manage- the other members of the Management Team ment Team is reviewed on an annual basis to ensure continued align- Payout range 0-100% of target amount for each KPI ment with the Cavotec’s group’s (the “Group”) strategy and market Impact of share price on payout value practice as well as with applicable laws. 37 CORPORATE GOVERNANCE Remuneration report The remuneration elements resulting in the aggregate remuneration of the Management Team for the FY2024 are summarised in Table 4. Remuneration for the term from 2024 AGM until 2025 Social security a) Base salary AGM in EUR (Audited) Qualification Board fees contributions Pension Total 2024 Total 2023 Base salary is the fixed remuneration paid to employees for carrying out Niklas Edling Independent Director 40,000 7,920 – 47,920 43,520 their role. It is designed to be attractive and market competitive and is Annette Kumlien Independent Director 45,000 8,910 – 53,910 48,960 established considering the following factors: • scope and responsibilities of the role, as well as qualifications and Peter Nilsson Independent Director 45,000 8,910 – 53,910 48,960 experience required to perform the role, market value of the role in the Keith Svendsen Independent Director 40,000 1,203 1,995 43,198 43,520 location in which Cavotec competes for talent; • skills and expertise of the individual in the role. Patrik Tigerschiöld Director (Chairman) 95,000 18,810 – 113,810 103,360 The base salary is paid out to the members of the Management Team Total remuneration 265,000 45,753 1,995 312,748 288,320 in twelve equal monthly cash instalments. Remuneration for the term b) Pension benefits from 2024 AGM until 2025 Social security The purpose of pension benefits is to provide security for employees Qualification Board fees contributions Pension Total 2024 Total 2023 and their dependents in the event of retirement, sickness, inability to Niklas Edling Independent Director 38,105 7,545 – 45,650 42,293 work and death. The Management Team’s members participate in the social insurance and pension plans in the countries where their employ- Annette Kumlien Independent Director 42,868 8,488 – 51,356 47,579 ment contracts were entered into. The plans vary according to local mar- Peter Nilsson Independent Director 42,868 8,488 – 51,356 47,579 ket practice and legislation; at a minimum they reflect the statutory requirements of the respective countries. In line with local employment Keith Svendsen Independent Director 38,105 1,146 1,901 41,152 42,293 practice for Swiss employees, Management Team’s members under Patrik Tigerschiöld Director (Chairman) 90,499 17,919 – 108,418 100’445 Swiss employment contracts are covered by the Company’s compul- sory occupational pension scheme. Total remuneration 252,446 43,585 1,901 297,932 280,189 EUR/CHF exchange rate 0.9526257 c) Other benefits In addition, Cavotec aims to provide competitive employee benefits. Benefits are considered from a global perspective, while appropriately reflecting differing local market practice and employment conditions. B. REMUNERATION SYSTEM The amounts of the base fee and committee membership fees, as For the Management Team’s members, benefits may include local mar- 1. Remuneration system of the Board illustrated in Table 3, reflect the responsibility and time requirement ket benefits such as transportation allowances, health cover, etc. The To ensure its independence in fulfilling its supervisory duties, the inherent to the respective function. monetary value of these remuneration elements as disclosed in the remuneration of the Board is fixed and does not contain any variable The base fee and committee membership fees are paid 100% in cash. remuneration Table 4 is based on the actual amount paid as well as the component. best estimate for the amounts yet to be paid. The chairman of the Board receives a fixed annual base fee of EUR 2. Remuneration system of the Management Team 95,000 (including fees for participation in the audit committee and remu- The remuneration elements for the Management Team generally consist d) Short-Term Incentive Plan (performance based non-equity cash neration committee meetings). The chairman of the Board is not entitled to of five components: compensation or STIP) being compensated for assuming additional committee responsibilities. a) salary The short-term incentive plan (STIP) is the cash-based element of the Other members of the Board receive a fixed annual base fee and fixed b) pension variable pay for inter alia the Management Team. Its objective is to: fees for membership in Board’s committees. c) other benefits • encourage performance and motivate the beneficiaries to work d) performance-based non-equity cash compensation (“STIP”) together for the sustainable success of the Group; e) performance-based equity-based incentives (“LTIP”) • enable the alignment of objectives throughout the Company. 38 CORPORATE GOVERNANCE Remuneration report The current STIP framework was introduced in 2018 to provide a simple, e) Long-Term Incentive Plan (performance based equity-based fair and transparent approach. incentives or LTIP) BODIES Plan participants at Group and division levels are incentivized based In 2023, the Board established an equity based long term incentive plan 1. Base on the achievement of financial performance targets, which are deter- framework called 2023-2025 LTIP (“2023-2025 LTIP”). Such program has The section below is in line with Swiss law and specifically with art. 734a mined by the Board at the beginning of each financial year. The perfor- been cancelled by the Board of Directors considering that the Company et seq. CO which require disclosure of remuneration paid (directly or indi- mance targets are defined in line with the year’s commitments to in 2024 was working on a new long-term incentive program. rectly) to members of the Board and Management Team. For this Remu- contribute to the long-term strategy. They are aligned with business For the same reason, the Company decided not to launch any long-term neration Report covering the FY2024, the remuneration paid to members priorities, with the aim of achieving sustainable profitability. incentive plan framework for the years 2024-2026. Therefore, no shares of the Board is shown as a whole and separately for each member; (ii) the These targets represent commercially sensitive information and are have been granted under a long-term incentive plan in 2024 or 2023. remuneration paid to the Management Team is shown in aggregate, while therefore not disclosed. the highest-paid member of the Management Team is shown separately. Pay-outs under the STIP are calculated based on the achievement C. EMPLOYMENT CONDITIONS No remuneration was paid directly or indirectly to former members of the level of the respective performance targets, with 100% achievement The members of the Management Team are employed under contracts Board or of the Management Team in connection with their former activ- resulting in 100% pay-out. For each financial performance target, there of unlimited duration with a notice period up to a maximum of twelve ity as a member of a corporate body of the Company. is a minimum threshold performance levels, below which there is no months. Employment contracts for the members of the Management pay-out. Team include non-competition agreements not exceeding a period of twelve months following the end of employment. Social security, (Audited) Compensation for non- Short-term Long-term insurance and pension Amounts for FY2024 in EUR Base salary compete arrangements Joining bonuses Incentive Plan 1) Incentive Plan 2) Benefits in kind 3) contributions 4) Total 2024 Total 2023 Management Team (not including CEO) 1,519,386 – – 288,473 – 101,812 457,425 2,367,097 NA David Pagels (CEO) 506,148 – – 257,213 – 6,018 278,354 1,047,733 976,986 Total remuneration 2,025,534 – – 545,686 – 107,830 735,779 3,414,830 976,986 Social security, (Audited) Compensation for non- Short-term Long-term insurance and pension Base salary compete arrangements Joining bonuses Incentive Plan 1) Incentive Plan 2) Benefits in kind 3) contributions 4) Total 2024 Total 2023 Management Team (not including CEO) 1,447,406 – – 274,807 – 96,989 435,755 2,254,957 NA David Pagels (CEO) 482,170 – – 245,028 – 5,733 265,167 998,098 949,433 Total remuneration 1,929,576 – – 519,835 – 102,722 700,922 3,253,055 949,433 EUR/CHF exchange rate 0.9526257 1) As the objectives of the 2024 STIP were achieved, there is payout in 2025 for FY2024. 2) The LTIP program 2023 was cancelled. For 2024 no LTIP program was launched. 3) Allowances (child, school fees, health insurance and transportation, non-competition agreements). 4) Pension contribution to the CEO and members of the management team, have been made both in form of cash and defined contribution payments. 39 CORPORATE GOVERNANCE Remuneration report 2. Remuneration awarded to the Board for the term between 4 June 2024 and 3 June 2025 (Audited) The remuneration awarded to the Board members for the term between EUR/CHF exchange rate 0.9526257 the 2024 AGM (4 June 2024) and the 2025 AGM (3 June 2025) is sum- Amounts for FY2024 in EUR Total remuneration granted (paid/payable) Maximum aggregate amount approved Status marised in Table 5. 2023 AGM to 2024 AGM 288,320 500,000 Approved (2023 AGM) Remuneration paid to the Board members for non-compete arrange- 2024 AGM to 2025 AGM 312,748 500,000 Approved (2024 AGM) ments (art. 734a para. 2 no. 10 CO) as well as permitted joining bonuses (art. 734a para. 2 no. 5 CO) or any other remuneration as per art. 734a 2025 AGM to 2026 AGM – 500,000 Proposed (2025 AGM) para. 2 CO, if any, are also summarised in Table 5. Total remuneration granted (paid/payable) Maximum aggregate amount approved Status 3. Remuneration awarded to the Management Team for the FY2024 2023 AGM to 2024 AGM 280,189 476,313 Approved (2023 AGM) (Audited) 2024 AGM to 2025 AGM 297,932 476,313 Approved (2024 AGM) For the FY2024, the members of the Management Team have been 2025 AGM to 2026 AGM – 476,313 Proposed (2025 AGM) awarded base salary, pension, other benefits and variable remuneration in line with the remuneration system described above in section B.2. The remuneration paid or awarded to the Management Team in aggre- gate and to its highest-paid member is summarised in Table 6. Compensation paid to the members of the Management Team for non-compete arrangements (art. 734a para. 2 no. 10 CO) as well as per- mitted joining bonuses (art. 734a para. 2 no. 5 CO) or any other remunera- Amounts for FY2024 in EUR Total remuneration granted (paid/payable)) Maximum aggregate amount approved Status tion as per art. 734a para. 2 CO, if any, are also summarised in Table 6. FY 2023 949,433 2,200,000 CEO Approved (2022 AGM) FY 2024 1,047,733 2,200,000 CEO Approved (2023 AGM) 4. Loans granted to members of the Board or of the Management Team Management Team (including CEO) In accordance with Article 16j of the Articles of Association, the FY 2024 3,414,830 5,000,000 Approved (2024 AGM) Company does not grant loans or extends credit to the members of the Management Team (including CEO) Board and of the Management Team. FY 2025 – 5,000,000 Approved (2024 AGM) Management Team (including CEO) E. REMUNERATION TO FORMER MEMBERS OF GOVERNING BODIES FY 2026 – 5,000,000 Proposed (2025 AGM) During the term of 4 June 2024 until 3 June 2025, no payments were made to former members of the Board or of the Management Team, or, Total remuneration granted (paid/payable)) Maximum aggregate amount approved Status in each case, to related parties. FY 2023 904,454 2,095,777 CEO Approved (2022 AGM) FY 2024 998,098 2,095,777 CEO Approved (2023 AGM) F. RECONCILIATION OF AGM REMUNERATION RESOLUTIONS Management Team (including CEO) For the term from the 2024 AGM to the 2025 AGM, the 2024 AGM FY 2024 3,253,055 4,763,129 Approved (2024 AGM) approved a maximum aggregate remuneration amount for the Board of Management Team (including CEO) EUR 0.5 million (covering all pay, pension contribution, social charges, FY 2025 – 4,763,129 Approved (2024 AGM) etc.). Table 7 shows the reconciliation between the remuneration that has been/will be paid/granted for the respective term of office and the Management Team (including CEO) FY 2026 – 4,763,129 Proposed (2025 AGM) maximum aggregate amount approved by the shareholders. 40 CORPORATE GOVERNANCE Remuneration report The maximum aggregate remuneration amount for the members of Audited Audited the Management Team for the FY2025, i.e. for the term started 1 January The remuneration report must also include the participation rights in the Members of the Board of Directors 2025, and ending 31 December 2025, approved by the 2024 AGM, is Company and options on such rights of each current member of the : Chairman of Bure Equity AB, Mycronic AB, SNS EUR 5 million (covering fixed and variable pay, pension contribution, board of directors and the executive board, including the members’ Center for Business and Policy Studies, and Yubico AB. Fellow of the social charges, etc.). Table 8 shows the reconciliation between the remu- close associates, as well as the name and function of the members Royal Swedish Academy of Engineering Sciences (IVA). neration that has been/will be paid to the members of the Management concerned (art. 734d CO). Team for the FY2025 and the maximum aggregate amount approved by : CEO of Nodica Group AB, member of the Board of HMS the shareholders. Networks AB. Participation Option on : COO Intrum AB and member of the Board of Dirac Amounts as of 31 December 2024 rights participations rights Research AB. The participation rights and options on such rights of each current Members of the Board of Directors : CEO of APM Terminals, member of the Executive Lead- member of the Board and of the Management Team, including their Niklas Edling 90,040 – ership Team at A.P. Moller-Maersk, director of Through Transport Mutual related parties, as well as the name and function of the members con- Insurance Association Limited. Annette Kumlien 75,000 – cerned (see art. 734d CO), are described in Table 9. : Chairman of the Board of Lindab Group, Nilfisk A/S and Peter Nilsson 212,180 – member of the Board of Creades AB. Keith Svendsen – – The external mandates of each current member of the Board and of the Patrik Tigerschiöld (Chairman) 1,598,000 – Management Team (see art. 734e CO) are described in Table 10. Members of the Management Team 2) : No other current assignment. Members of the Management Team I. LOANS : No other current assignment. David Pagels (CEO) 750,000 1,500,000 With respect to the FY2024, no loans or credit facilities (still outstanding : No other current assignment. in FY2024) granted by Cavotec to the members of the Board or of the Joakim Wahlquist 75,000 150,000 Management Team, former members of the Board or of the Management : No other current assignment. Patrick Baudin 10,000 – Team, exist. : No other current assignment. Patrick Mares 18,950 – : No other current assignment. Jörgen Ohlsson 1,095 – TO RELATED PERSONS Total No non-market standard remuneration has been granted by Cavotec to related parties of the members of the Board or of the Management 1) The numbers in this table also include holdings of closely linked persons to the Team. respective member of the Board or the Management Team. With respect to the FY2024, no loans or credit facilities (still out- 2) Members of the Management Team (including the members’ close associates) not included in this list do not own participation rights or options on participation rights. standing in FY2024) granted by Cavotec to the members of the Board or of the Management Team exist. 41 Report of the statutory auditor to the General Meeting of Cavotec SA, Lugano Opinion We have audited the remuneration report of Cavotec SA (the Company) for the year ended 31 December Our objectives are to obtain reasonable assurance about whether the information pursuant to article 2024. The audit was limited to the information pursuant to article 734a-734f of the Swiss Code of Obliga- report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaran- tee that an audit conducted in accordance with Swiss law and SA-CH will always detect a material mis- statement when it exists. Misstatements can arise from fraud or error and are considered material if, indi- vidually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this remuneration report. Basis for opinion We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our As part of an audit in accordance with Swiss law and SA-CH, we exercise professional judgement and - maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement in the remuneration report, whether due to fraud accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that have fulfilled our other ethical responsibilities in accordance with these requirements. is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material mis- statement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for forgery, intentional omissions, misrepresentations, or the override of internal control. our opinion. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective- Other information The Board of Directors is responsible for the other information. The other information comprises the infor- • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti- mates and related disclosures made. Our opinion on the remuneration report does not cover the other information and we do not express any We communicate with the Board of Directors or its relevant committee regarding, among other matters, form of assurance conclusion thereon. the planned scope and timing of the audit and significant audit findings, including any significant deficien- cies in internal control that we identify during our audit. In connection with our audit of the remuneration report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the audited finan- We also provide the Board of Directors or its relevant committee with a statement that we have complied cial information in the remuneration report or our knowledge obtained in the audit, or otherwise appears to with relevant ethical requirements regarding independence, and communicate with them all relationships be materially misstated. and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. PricewaterhouseCoopers SA The Board of Directors is responsible for the preparation of a remuneration report in accordance with the Board of Directors determines is necessary to enable the preparation of a remuneration report that is free from material misstatement, whether due to fraud or error. It is also charged with structuring the remuner- Thomas Wallmer Laura Cazzaniga ation principles and specifying the individual remuneration components. Licensed audit expert Licensed audit expert Auditor in charge Lugano, 27 March 2025 Cavotec SA | Report of the statutory auditor to the General Meeting CORPORATE GOVERNANCE Corporate governance report Corparate governance report 2024 Since Cavotec SA (“Cavotec” or the “Company”) is a Swiss company General listed on Nasdaq Stockholm, the corporate governance of Cavotec is Swedish companies with shares admitted to trading on a regulated Shareholders’ rights to resolve on company matters are exercised at based on Swiss and Swedish rules and regulations, such as the Swiss market in Sweden, including Nasdaq Stockholm, are subject to the Code. shareholders’ meetings. An ordinary shareholders’ meeting is to be held Code of Obligations (the “CO”) and the Swedish Code of Corporate The Code is a codification of best practices for Swedish listed compa- yearly within six months following the close of the business year (the Governance (Sw. Svensk kod för bolagsstyrning) (the “Code”). This nies based on Swedish practices and circumstances. Cavotec has “Annual General Meeting”). It is called by the Board of Directors or, if corporate governance report reflects the changes occurred with the decided to apply the Code, however, the Company is not obliged to com- necessary, by the auditors. Extraordinary shareholders’ meetings may Swiss corporate law reform that came into force on 1 January 2023. ply with every rule in the Code as the Code itself provides for the possi- be called by the Board of Directors, the liquidators or the auditors as bility to deviate from the rules, provided that any such deviations and the often as necessary to safeguard the interests of the Company. Share- chosen alternative solutions are described and the reasons therefore holders’ meetings are held at the domicile of the Company or at such are explained in the corporate governance report (according to the other place in Switzerland or abroad as the Board of Directors shall so-called “comply or explain principle”). Deviations that the Company determine. The shareholders’ meetings will be held in English and infor- is aware of have, as far as possible, been explained in the Company’s mation and material will be available in English only. This is in accordance corporate governance report. CAVOTEC CORPORATE GOVERNANCE STRUCTURE Shareholders Nomination Committee 1) Auditors BUDGET 2025 APPROVAL Chairman of the Board Q4 2023 REPORT Q3 2024 REPORT Remuneration Committee Board of Directors Audit Committee e c J D a n Articles of Association CEO v F o e N b Code of Conduct Cavotec Management Team c M O t a Internal Regulations r Chief Financial Officer S SVP, Product Management and Chief e p A p r ANNUAL REPORT Group Policies Technology Officer A SVP, Head of Industry Division u y g a M SVP, Head of Ports & Maritime Division J u l J u n President, Services Q1 2024 REPORT SVP, Head of Global Operations Chief Legal & Human Resources Officer 1) To follow the rules that apply to Swiss companies, the Board of Directors has decided that the Nomination Committee shall be established by the Board of Directors. Q2 2024 REPORT ANNUAL GENERAL MEETING The composition of the Nomination Committee shall, however, be in line with the Swedish Corporate Governance Code. 43 CORPORATE GOVERNANCE Corporate governance report with an exemption granted by the Swedish Financial Supervisory Authority. Nomination process The minutes of shareholders’ meetings, containing the resolutions and The process for the nomination of Board members for Cavotec is The members of the Board of Directors are elected by the shareholders’ the election results with details of the exact percentage of votes for and construed in light of the Code, while still respecting Swiss laws and meeting for the period until the end of the next ordinary shareholders’ against, will be published on the Company’s website within 15 days regulations applicable to a Swiss company. The ultimate goal has been meeting. The Board of Directors constitutes itself, but by law the Chair- following the general meeting. to adopt a Nomination Process that is open and transparent to all share- man of the Board of Directors is elected by the shareholders’ meeting, as holders and stakeholders. set out in the Articles of Association and by Swiss law. Right to attend shareholders’ meetings In October 2024 the Committee began preparing a proposal for the The members of the Nomination Committee and the Audit Committee, All shareholders who are registered directly in Euroclear Sweden’s and Board of Directors to be submitted to the Annual General Meeting 2025. as well as the respective Chairmen, are elected from and by the members SIX SIS’s share registers on the record date, as applicable, and who The proposal of the Nomination Committee will be published in the of the Board of Directors. The Remuneration Committee is elected by notify the Company of their intention to attend the shareholders’ meeting invitation to the Annual General Meeting. the shareholders’ meeting and its Chairman is elected by the Board, as at the latest by the date specified in the convening letter, shall be entitled With respect to the requirements in the Code that a majority of the further described below in relation to the description of each committee. to attend the shareholders’ meeting and vote according to the number Directors elected by the shareholders’ meeting are to be independent of The Board of Directors is entrusted with the overall management of of shares they hold. Shareholders may attend shareholders’ meetings in the Company and its executive management and that at least two of this the Company, as well as with the supervision and control of the manage- person or through a proxy. The Board of Directors may provide that majority also are to be independent in relation to the Company’s major ment. The Board of Directors is the ultimate executive body of the Com- shareholders who are not present at the place of the shareholders’ shareholders, the Nomination Committee has carried out the following pany and shall determine the principles of the business strategy and meeting may exercise their rights by electronic means. Shareholders assessment: policies. may usually register for shareholders’ meetings in several different ways, Annette Kumlien, Niklas Edling, Patrik Tigerschiöld, Keith Svendsen The Board of Directors shall exercise its function as required by law, which are described in the Notice of meeting (the “Notice of Meeting”). and Peter Nilsson are all independent of the Company and its executive the Articles of Association and the Board of Directors’ Internal Regula- management. tions. The Board shall be authorised to pass resolutions on all matters Notice of shareholders’ meetings and shareholder initiatives Annette Kumlien, Niklas Edling, Keith Svendsen and Peter Nilsson are that are not reserved to the general meeting of shareholders or to other The Notice of Meeting is given by means of a publication in the Swiss all also independent in relation to the Company’s major shareholders. executive bodies by applicable law, the Articles of Association or the Commercial Gazette or by letter or e-mail to the shareholders of record The Nomination Committee therefore concludes that all require- Internal Regulations. as well as through a press release. Between the day of the publication or ments of Directors’ independence as set out in the Code are met. By Swiss law, the Board of Directors has in particular the following the mailing of the notice and the day of the shareholders’ meeting there non-transferable and inalienable duties: must be a time period of not less than 20 calendar days. The notice of External auditor the shareholders’ meeting must indicate the agenda and the motions. The Audit Committee and the Board of Directors are responsible for a) The overall management of the company and issuing the required The notice of the shareholders’ meeting must indicate in particular the presenting proposals on the appointment of the auditors to the Annual directives; agenda items to be discussed, the motions of the Board of Directors General Meeting and are also responsible for resolving on the remunera- b) To determine the Company’s organisation; together with a short explanation, and, if applicable, the shareholders’ tion to the auditor and any issues on resignation or dismissal of the audi- c) Organising the accounting, financial control and financial planning motions together with a short explanation. The notice will also be pub- tor. This constitutes a deviation from the Code that prescribes that the systems as required for management of the company; lished on the Company’s website. At the time of the notice, the Company Nomination Committee is responsible for presenting proposals to the d) Appointing and dismissing persons entrusted with managing and may publish in Svenska Dagbladet an announcement with information Annual General Meeting on the election and remuneration of the representing the company; that the notice has been issued. external auditor. In accordance with Swiss law, the Board of Directors e) Overall supervision of the persons entrusted with managing the Shareholders may request that items be placed on the agenda of a has decided that the Audit Committee shall propose the auditors to company, in particular with regard to compliance with the law, articles meeting convened by the Board of Directors, provided they together the Board of Directors, which in turn shall present its proposals to the of association, operational regulations and directives; hold at least 0.5 per cent of the share capital or of the votes. Annual General Meeting. For the purpose of its election by the Annual f) Compiling the annual report, preparing for the general meeting and Stating the purpose of the meeting and the agenda to be submitted, General Meeting 2025, the Audit Committee has proposed to the Board implementing its resolutions, including interim published reports and one or more shareholders representing at least five per cent of the share of Directors to appoint PricewaterhouseCoopers SA, Lugano, as the determination of the accounting standard; capital or the votes may request the Board of Directors, in writing to call independent auditor of the Company for the business year 2025. g) Filing an application for a debt restructuring moratorium and noti fying an extraordinary shareholders’ meeting. In such case, the Board of Direc- Thomas Wallmer is the auditor in charge. the court in the event that the company is overindebted; tors must call a shareholders’ meeting within two weeks. h) Preparing the remuneration report. 44 CORPORATE GOVERNANCE Corporate governance report By Swiss law, the Board of Directors also has in particular the following The Nomination Committee shall ensure that the Company has a plan, as prepared by the auditors, including the adequacy of the scopes non-transferable responsibilities: (i) decision pursuant to art. 653e CO formal and transparent method for the nomination and appointment of of the audits proposed for the principal locations and the proposed audit (preparation of the capital increase report); (ii) decisions in connection members of the Board of Directors. The objectives of the Nomination fees. The engagement of the auditors for non-audit services of signifi- with capital increases pursuant to art. 652g, 653g, 653i (acknowledge- Committee are to regularly review and, when appropriate, recommend cance is approved in advance by the Audit Committee. ment of capital increase); (iii) decision pursuant to art. 653o (acknow- changes to the composition of the Board of Directors to ensure that the At least once every year Management gives a presentation to the ledgement of capital reduction); (iv) decisions pursuant to art. 634b I CO Company has, and maintains, the right composition of the members of Audit Committee on the risk profile of the Group and on the procedures (require outstanding contributions on shares not fully paid in); (v) to the Board of Directors effectively govern and provide guidance to busi- in place for the management of Risk. Risks related to the potential monitor the solvency of the company and to take all actions within the ness, and identify and recommend to the Board of Directors individuals impairment of assets and the related provisions required for financial meaning of art. 725, 725a and 725b; and (vi) specific resolutions pursuant for nomination as members of the Board and its Committees (taking into exposures are reviewed and discussed with Management at least once a to the Swiss Merger Act. account such factors as it deems appropriate, including experience, year, normally in conjunction with the third quarter closing. The Board of Directors held eight ordinary Board meetings and two qualifications, judgment and the ability to work with other Board The Audit Committee of Cavotec met five times in 2024. extraordinary Board meetings for Cavotec in 2024. In addition, one members). The current members of the Audit Committee are Annette Kumlien Board resolutions have been deliberated by circular resolution (without From September 2024 the Nomination Committee members are (Chairwoman), Patrik Tigerschiöld and Niklas Edling. a Board meeting). Henrik Blomquist (representing Bure Equity AB), Per Colleen, who repre- sents TomEnterprise Private AB (Thomas von Koch), Thomas Ehlin Remuneration Committee BOARD COMMITTEES (representing The Fourth Swedish National Pension Fund – AP4), Fabio The main purpose of the Remuneration Committee is to act as remuner- The Board of Directors currently has three Board committees: the Cannavale, who represents Nomina SA and Patrik Tigerschiöld ation committee pursuant to Swiss law against excessive compensation Nomination Committee, the Audit Committee and the Remuneration (Chairman of Cavotec’s Board of Directors). with respect to listed corporations. The Remuneration Committee has in Committee. The Remuneration Committee has been elected by the particular the following duties and responsibilities: Annual General Meeting, in accordance with Swiss law (in particular the Audit Committee CO that – as of 1 January 2023 – has implemented the previous regula- The objective of the Audit Committee is to assist the Board of Directors a) Reviewing and advising the Board of Directors on the terms tion set by the Minder Ordinance). The composition and tasks of the in discharging its responsibilities relative to financial reporting and regu- of appointment of the CEO; Board’s Committees are regulated in the Board of Directors’ Internal Reg- latory compliance. The Audit Committee also presents proposals on the b) Reviewing working environments and succession planning for ulations. The composition and tasks of the Remuneration Committee are election and remuneration of the auditors to the Board of Directors, members of the Management Team; regulated in the Articles of Association as well as in the Board of Direc- which in turn present its proposals to the Annual General Meeting for the c) Reviewing the terms of the employment arrangements with members tors’ Internal Regulations. Below is a brief description of the Committees election. Members of the Audit Committee shall exclusively comprise of of the Management Team, as well as to develop consistent group as per the current Internal Regulations (which are continuously reviewed members of the Board appointed by the Board in accordance with the employment practices subject to regional differences; and if deemed appropriate by the Board of Directors amended). The Code. The Audit Committee will comprise of not less than three mem- d) Reviewing of and making proposals to the Board of Directors on shareholder can request to the Board of Directors to issue information in bers with a majority to be Independent Directors of the Board. One the remuneration of the members of the Board of Directors and of writing or electronically concerning the organisation of the business member must have a financial or accounting background. the Management Team; management. The Audit Committee of Cavotec is involved in a wide range of activi- e) Reviewing the terms of the Company’s short and long term ties including, inter alia, the review of all quarterly, half-yearly and annual incentive plans; Nomination Committee financial statements prior to their approval by the Board and release to f) Submission of a draft of the remuneration report to the Board of The Nomination Committee shall be a committee established by the the public. The Committee has periodic contact with the auditors, Directors. Board of Directors of the Company. This is in line with Swiss law but will PricewaterhouseCoopers (PwC), through the PwC engagement partner constitute a deviation from the Code that prescribes that the Nomination responsible for the Audit and through the principal engagement man- The Remuneration Committee and the Board of Directors are thus Committee shall be determined by the shareholders. To follow the rules ager, to review any unusual matters and the effect of new accounting together responsible for presenting proposals to the Annual General that apply to Swiss companies the Board of Directors has decided that pronouncements. As a matter of policy, the Audit Committee meets with Meeting on the remuneration of the members of the Board of Directors the Nomination Committee shall be established by the Board of Directors. the PwC engagement partner without the presence of Management at and of the Management Team. This constitutes a deviation from the The composition of the Nomination Committee shall however be in line least once every year. Further, the Committee reviews the annual audit Code that prescribes that the Nomination Committee is responsible for with the Code. 45 CORPORATE GOVERNANCE Corporate governance report presenting proposals to the Annual General Meeting on the fees and REMUNERATION AND INCENTIVE PLANS other remuneration to the Board members. Please refer to the Remuneration report on page 36. The Remuneration Committee of Cavotec met five times in 2024. The current members of the Remuneration Committee in Cavotec are Peter Nilsson (Chairman), Keith Svendsen and Patrik Tigerschiöld. The internal control function has been embedded in the finance organi- In accordance with Art. 698 para 3 and 733 CO and with the Internal sation. This task is performed by Group Finance, that together with the Regulations, the Nomination Committee proposes to elect the following local entity’s finance department and the Legal Compliance officer is Board members to be part of the Remuneration Committee for the year responsible for ensuring that the necessary controls are performed 2025/2026: Keith Svendsen, Patrik Tigerschiöld and Peter Nilsson. along with adequate monitoring. Internal controls comprise the control of the Company’s and Group’s CAVOTEC MANAGEMENT TEAM organisation, procedures and remedial measures. The objective is to Cavotec’s Management Team if formed by the CEO and additional mem- ensure reliable and correct financial reporting, and to ensure that the bers working for the management team of Cavotec who have substantial Company’s and Group’s financial reports are prepared in accordance decision-making power. The other members of the Management Team with law and applicable accounting standards and that other require- are selected by the CEO and as of 31 December 2024 consists of six ments are complied with. The internal control system is also intended to members (excluding the CEO), combining Cavotec’s senior operational monitor compliance with the Company’s and Group’s policies, principles and corporate functions. and instructions. In addition, the control system monitors security for According to Art. 716b and the Internal Regulations, the Board of the Company assets and monitors that the Company’s resources are Directors delegates the management of Company and of the Group to exploited in a cost-effective and adequate manner. Internal control also the CEO and in turn to the Management Team. The Management Team involves following up on the implemented information and business fulfils the Group Management role – empowered by the CEO – and system, and risk analysis. ensures efficient implementation of strategic decisions into Cavotec’s global organisation and leads local management on key operational issues. The CEO, defines and implements operational strategy, policies, technical and commercial developments, as well as new acquisitions in line with targets set by the Cavotec’s Board of Directors. Cavotec’s operational structure is reasonably flat in order to ensure that the Group’s operations and decision-making processes are efficient and responsive. Strategic, Group-related operations are the responsibility of the CEO with the support of the Management Team. All material decisions within the day-to-day operations of the Company are taken by the CEO. 46 CORPORATE GOVERNANCE Board of Directors Board of Directors PATRIK TIGERSCHIÖLD NIKLAS EDLING ANNETTE KUMLIEN PETER NILSSON KEITH SVENDSEN Chairman of the Board Member of the Board Member of the Board Member of the Board Member of the Board Born 1964 Born 1963 Born 1965 Born 1962 Born 1973 Member since 2014, Chairman since 2018 Member since 2019 Member since 2019 Member since 2023 Member since 2021 Citizenship: Swedish Citizenship: Swedish Citizenship: Swedish Citizenship: Swedish Citizenship: Danish Keith Svendsen graduated as a Master Mariner from Patrik Tigerschiöld holds a M.Sc. in Business Niklas Edling holds a M.Sc. in Mechanical Engineering Annette Kumlien holds a B.B.A. from Stockholm Peter Nilsson holds a M.Sc. in Business and and Economics. from the Royal Institute of Technology, Sweden and a Fanoe Navigation College, in Denmark, and has an School of Economics. Economics from Stockholm School of Economics. B.Sc. in Economics and Business Administration from Executive MBA from the London Business School. Since 2013, he has been the Chairman of Bure Equity Alongside her Cavotec role, she holds the position He is Chairman of Lindab Group, Nilfisk A/S and Stockholm School of Economics. Alongside his Cavotec role, he currently serves as AB (a role he also held between 2004 and 2009), as COO of Intrum AB and is a member of the Board member of the Board of Creades AB. He was In addition to being on the Cavotec Board, Niklas CEO of APM Terminals, one of the largest port following his tenure as President and CEO of the of Dirac Research AB. Previously Annette has held previously, among others, Chairman of Adapteo AB is CEO of Nodica Group AB and Board member terminal operators in the world. He is also a member company. He is also chairman of Mycronic AB, SNS the positions as GVP/CFO at Munters Group AB, and Unilode AG, Deputy Chairman of Cramo OYJ of HMS Networks AB. Previously, Niklas was CEO of the Executive Leadership Team at A.P. Moller- Center for Business and Policy Studies, and Yubico CFO/COO at Diaverum and CFO in Höganäs AB and Creaspac AB as well as CEO of Sanitec AB of ScandiNova Systems AB, SVP Corporate Maersk and Director of Through Transport Mutual AB. Patrik is also a Fellow of the Royal Swedish and Pergo AB. and Duni AB. Development and Deputy CEO at electronics Insurance Association Ltd, an independent provider Academy of Engineering Sciences (IVA). Annette Kumlien holds 75,000 shares in Cavotec. Peter Nilsson holds 212,180 shares in Cavotec through production solutions provider Mycronic, where of mutual insurance and related risk management Patrik Tigerschiöld, together with his family, holds his company Poleved Industrial Performance AB. he also served as SVP Operations. services to the international transport and logistics 1,598,000 shares in Cavotec. industry. Previously, Keith has been COO of APM Niklas Edling holds 90,040 shares in Cavotec. Terminals and Head of Operational Execution for the Maersk Group’s Ocean Shipping business. Keith Svendsen does not hold any shares in Cavotec. 47 CORPORATE GOVERNANCE Cavotec Management Team Management team DAVID PAGELS JOAKIM WAHLQUIST PATRICK MARES JONATHAN ERIKSSON CEO Chief Financial Officer Senior Vice President, Product Management Senior Vice President and Head of Industry Division Born 1968 Born 1977 and Chief Technology Officer Born 1992 Citizenship: Swedish Citizenship: Swedish Born 1962 Citizenship: Swedish David Pagels holds an Executive MBA from Stockholm School of Joakim Wahlquist holds a M.Sc. in Business Administration from Citizenship: Belgian Jonathan Eriksson holds a M.Sc. in Industrial Engineering and Economics, a M.Sc. in Mechanical Engineering from University of Linköping University, Sweden and an Executive Education from Patrick Mares holds a M.Sc. in Engineering from University of Management from the Royal Institute of Technology, Sweden. Prior Luleå, Sweden and a B.Sc in Mechanical Engineering from University Stockholm School of Economics. Prior to joining Cavotec in 2023, Leuven, Belgium. Prior to joining Cavotec in 2019, he served as Vice to joining Cavotec in 2020, he served among all as a management of Växjö, Sweden. Prior to joining Cavotec in 2022, he served as he has held several senior management positions such as President EMEA at Harsco Rail. Prior to this, he was Vice President consultant at Roland Berger och project leader at Atlas Copco CEO of Dellner Couplers, Head of Global Sourcing at Xylem Europe Managing Director Financial Services Russia at Scania, CFO Russia of Sales & Business Development at GKN Land Systems, President Industrial Technique. He has held various senior roles in Cavotec GmbH, and Director Strategic Sourcing at Bombardier and Central Asia at Scania and CFO Hong Kong at Scania. EMEIA at Ingersoll Rand Security Technologies, and held various such as Vice President of the Industry Division, Vice President and Transportation. Holdings in Cavotec: 75,000 shares and 150,000 call options issued leadership positions at General Electric. Head of Business Development and Project Director, Global Holdings in Cavotec: 750,000 shares and 1,500,000 call options by Bure Equity AB. Holdings in Cavotec: 18,950 shares. Operations. issued by Bure Equity AB. Holdings in Cavotec: 10,000 shares through pension scheme. PATRICK BAUDIN JÖRGEN OHLSSON VANESSA TISCI NICKLAS VEDIN President, Services Senior Vice President, Global Operations Chief Legal & Human Resources Officer Senior Vice President and Head of Ports & Maritime Division Born 1971 Born 1970 Born 1982 Born 1991 Citizenships: Canadian and French Citizenship: Swedish Citizenship: Italian Citizenship: Swedish Patrick Baudin holds a MBA in International Finance from HEC Jörgen Ohlsson holds a M.Sc. in Mechanical Engineering from Linné Vanessa attended the universities of Bologna and Milan in Italy and Nicklas Vedin holds a M.Sc. in Industrial Engineering and School of Management in Paris and a B.Sc. in Engineering from university, Sweden. Prior to joining Cavotec in 2023, he served as holds a Master’s Degree in law from Stanford Law School, UK. She Management from Linköping University, Sweden. Prior to joining McGill University in Montreal, Canada. Prior to joining Cavotec in Production Director for the Xylem site in Emmaboda, Sweden. He joined Cavotec in 2020 and prior to that she was Head of Legal at Cavotec in 2018, he served as a management consultant at 2018, he served as President of General Electric Renewable Energy has also held senior positions such as Strategic Sourcing within SCP Group, and prior to that she worked as Senior International Ericsson in Sweden and the US. He has held various senior roles at Canada. He has also held several senior positions in ALSTOM such Ericsson and in production and sourcing within Bombardier. Counsel for Walgreens Boots Alliance. Vanessa is a New Cavotec such as Vice President of Sales in the Ports & Maritime as vice president of the Generator Product Line for ALSTOM Holdings in Cavotec: 1,095 shares. York-qualified attorney and has worked for major US law firms as a Division and Vice President, Product Management for MoorMaster. Thermal Service in Switzerland and ALSTOM Power Service corporate lawyer. Holdings in Cavotec: 10,000 shares. in France. Holdings in Cavotec: – Holdings in Cavotec: 10,000 shares. 48 FINANCIAL STATEMENTS Financial Statements We are committed to supporting customers achieve safe, efficient and reliable operations. Sharing our knowledge and experience with clients is therefore a key element of our long-term working partnership. Our local offices offer support services around the world and around the clock such as maintenance, inspections and systems integration. 49 FINANCIAL STATEMENTS Consolidated Financial Statements Statement of Comprehensive Income Cavotec SA & Subsidiaries EUR 000s Notes 2024 2023 EUR 000s Notes 2024 2023 Revenue from sales of goods and services 5 174,952 180,734 Total comprehensive income/(loss) attributable to: Other income 6 1,336 2,076 Equity holders of the Group 3,431 (1,755) Cost of materials (85,073) (101,219) Non-controlling interest – – Employee benefit costs 7 (53,428) (47,895) Total 3,431 (1,755) Operating expenses 8 (21,109) (19,292) Profit/(Loss) attributed to: Gross operating result 16,677 14,404 Equity holders of the Group 3,840 180 Depreciation and amortisation 16, 17 (2,462) (2,782) Total 3,840 180 Depreciation of right-of-use of leased asset 16 (3,129) (3,311) Basic and diluted earnings per share attributed Impairment losses (193) (1,084) to the equity holders of the Group (EUR/share) 30 0.036 0.002 Operating result 10,893 7,227 Weighted average number of shares 106,696,030 104,103,112 Interest income 10 35 18 The notes on pages 54-75 are an integral part of these Consolidated Financial Statements. Interest expenses 10 (2,605) (3,471) Currency exchange differences – net 10 (113) (16) Other financial item (4) 5 Profit/(Loss) before income tax 8,206 3,763 Income taxes 11 (4,366) (3,583) Profit/(Loss) for the period 3,840 180 Other comprehensive income: Remeasurements of post employment benefit obligations 27 (43) (99) Items that will not be reclassified to profit or loss (43) (99) Currency translation differences (366) (1,836) Items that may be subsequently reclassified to profit/(loss) (366) (1,836) Other comprehensive income/(loss) for the year, net of tax (409) (1,935) Total comprehensive income/(loss) for the year 3,431 (1,755) 50 FINANCIAL STATEMENTS Consolidated Financial Statements Balance Sheet Cavotec SA & Subsidiaries EUR 000s Notes 31 Dec. 2024 31 Dec. 2023 EUR 000s Notes 31 Dec. 2024 31 Dec. 2023 ASSETS EQUITY AND LIABILITIES Current assets Current liabilities Cash and cash equivalents 11,597 15,056 Bank overdraft (128) – Trade receivables 12 26,163 27,942 Current lease liabilities 16 (2,566) (2,527) Contract assets 5, 12 830 2,862 Trade payables 22 (21,900) (26,004) Tax assets 13 2,451 4,718 Contract liabilities 5 (17,935) (19,268) Other current receivables 14 9,899 4,949 Tax liabilities 23 (2,320) (5,111) Inventories 15 35,555 37,429 Provision for risk and charges, current 26 (3,231) (2,171) Assets held for sale 9 – 1,814 Other current liabilities 24 (12,857) (11,320) Total current assets 86,495 94,770 Total current liabilities (60,937) (66,401) Non-current assets Non-current liabilities Property, plant and equipment 16 5,362 5,414 Non-current financial liabilities 21 (13,601) (21,468) Right-of-use of leased assets 16 12,526 11,529 Non-current lease liabilities 16 (10,160) (9,167) Intangible assets 17 35,604 37,315 Deferred tax liabilities 25 (1,442) (1,251) Non-current financial assets 18 288 68 Other non-current liabilities (15) (12) Deferred tax assets 19 6,663 6,897 Provision for risk and charges, non-current 26 (1,321) (1,794) Other non-current receivables 20 1,311 1,231 Employee benefit obligation 27 (911) (569) Total non-current assets 61,754 62,454 Total non-current liabilities (27,450) (34,261) TOTAL ASSETS 148,249 157,224 Total liabilities (88,387) (100,662) Equity Share Capital 28 (54,130) (54,130) Reserves 29 (54,782) (55,323) Retained earnings 49,051 52,891 Equity attributable to owners of the parent (59,862) (56,562) Non-controlling interests – – Total equity (59,862) (56,562) TOTAL EQUITY AND LIABILITIES (148,249) (157,224) The notes on pages 54-75 are an integral part of these Consolidated Financial Statements. 51 FINANCIAL STATEMENTS Consolidated Financial Statements Statement of Changes in Equity Cavotec SA & Subsidiaries Equity related to owners Non-controlling EUR 000s Notes Share capital Reserves Retained earnings of the parent company interest Total equity Balance as at 1 January 2023 (45,288) (51,633) 53,071 (43,850) – (43,850) (Profit)/Loss for the period – – (180) (180) – (180) Currency translation differences – 1,836 – 1,836 – 1,836 Remeasurements of post employment benefit obligations 27 – 99 – 99 – 99 Total comprehensive income and expenses – 1,935 (180) 1,755 – 1,755 Employees share scheme – 58 – 58 – 58 Capital increase (8,843) – – (8,843) – (8,843) Share Premium Reserve – (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) Balance as at 1 January 2024 (54,130) (55,323) 52,891 (56,562) – (56,562) (Profit)/Loss for the period – – (3,840) (3,840) – (3,840) Currency translation differences – 366 – 366 – 366 Remeasurements of post employment benefit obligations 27 – 43 – 43 – 43 Total comprehensive income and expenses – 409 (3,840) (3,431) – (3,431) Employees share scheme – 131 – 131 – 131 Transactions with shareholders – 131 – 131 – 131 Balance as at 31 December 2024 (54,130) (54,782) 49,051 (59,862) – (59,862) The line related to Employees share scheme shows the accrual for pension plans. The notes on pages 54-75 are an integral part of these Consolidated Financial Statements. 52 FINANCIAL STATEMENTS Consolidated Financial Statements Statement of Cash Flows Cavotec SA & Subsidiaries EUR 000s Notes 2024 2023 EUR 000s Notes 2024 2023 Profit/(Loss) for the year 3,840 180 Financing activities Increase in equity capital – 14,526 Adjustments for: Net changes loans and borrowings (7,898) (4,696) Net interest expenses 2,570 3,453 Repayment of lease liabilities (3,136) (3,156) Current taxes 11 4,204 4,221 Net cash inflow/(outflow) from financing activities (11,034) 6,674 Depreciation and amortisation 16,17 2,462 2,782 Depreciation of right-of-use of leased assets 16 3,129 3,311 Investing activities Impairment losses 193 1,084 Investments in property, plant and equipment 16 (904) (911) Deferred tax 163 (638) Investments in intangible assets 17 (63) (624) Provision for risks and charges (460) 69 Decrease (increase) of non current financial asset (220) 38 Capital gain or loss on assets 14 (20) Disposal of assets 9 1,873 29 Other items not involving cash flows (271) (454) Net cash inflow/(outflow) from investing activities 686 (1,468) Interest paid (2,729) (3,057) Cash at the beginning of the year 15,056 9,625 Taxes paid (4,730) (529) Cash flow for the year (4,122) 7,137 4,545 10,222 Currency exchange differences 535 (1,706) Cash flow before change in working capital 8,385 10,402 Cash at the end of the year 11,469 15,056 Impact of changes in working capital Cash and cash equivalent 11,597 15,056 Inventories 1,849 5,451 Bank overdraft (128) – Trade receivables and contract assets 4,651 4,381 Cash at the end of the year 11,469 15,056 Other current receivables (4,934) 1,306 The notes on pages 54-75 are an integral part of these Consolidated Financial Statements. Trade payables and contract liabilities (5,437) (18,979) Other current liabilities 1,713 (628) Impact of changes involving working capital (2,158) (8,469) Net cash inflow/(outflow) from operating activities 6,226 1,933 53 Notes to the Financial Statements NOTE 1. General information NOTE 2. Basis of preparation NOTE 3. Summary of material accounting policies Cavotec is a leading cleantech company that designs and delivers connection and The consolidated Financial Statements of the Cavotec Group are prepared in The principal accounting policies adopted in the preparation of the Financial State- electrification solutions to enable the decarbonisation of ports and industrial appli- accordance with IFRS accounting standards as issued by the IASB. ments are set out below. These policies have been consistently applied to all the cations worldwide. Backed by 50 years of experience, our systems ensure safe, effi- periods presented, namely, 31 December 2024 and 2023. cient, and sustainable operations for a wide variety of customers and applications HISTORICAL COST CONVENTION worldwide. These Financial Statements have been prepared under the historical cost conven- FOREIGN CURRENCY TRANSLATION We thrive by shaping future expectations in the areas we are active in. Our credi- tion, as modified by the revaluation of financial assets and financial liabilities at fair (i) Functional and presentation currency bility comes from our application expertise, dedication to innovation and world class value through P&L. Items included in the Financial Statements are measured using the currency of the operations. Our success rests on the core values we live by: Integrity, Accountability, primary economic environment in which the related entity operates (“the functional Performance and Teamwork. ADOPTION OF NEW AND REVISED STANDARDS AND APPLICATION OF NEW currency”). The Financial Statements are presented in Euros, which is the Group’s Cavotec’s personnel, located in16 countries around the world, represent many ACCOUNTING POLICIES presentation currency and Company’s functional currency. cultures and provide customers with local support, backed by the Group’s global The following standards are effective from 1 January 2024. The adoption of the network of engineering expertise. amendments has had no impact on the Group’s consolidated financial position or (ii) Transactions and balances Cavotec SA is the ultimate Parent company of the Cavotec Group, its registered performance of the Group as per management analysis performed: Foreign currency transactions are translated into the functional currency using the office is Corso Elvezia 16, CH-6900 Lugano , Switzerland. Cavotec SA shares are exchange rates prevailing at the dates of the transactions. Foreign exchange gains listed on Nasdaq Stockholm, Sweden. • Amendments to IAS 1 – Classification of Liabilities as Current or Non-current an d and losses resulting from the settlement of such transactions and from the transla- These Financial Statements were approved by the Board of Directors on 27 Non-current Liabilities with Covenants tion at year end exchange rates of monetary assets and liabilities denominated in March 2025. The report is subject to approval by the Annual General Meeting on 3 • Amendments to IFRS 16 – Lease Liability in Sale and Leaseback foreign currencies are recognised in the Statement of Profit or Loss, except when June 2025. • Amendments to IAS 7 and IFRS7 – Supplier Finance Arrangements recognised in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Certain new accounting standards, amendments to accounting standards and inte r- pretations have been published that are not mandatory for 31 December 2024 (iii) Foreign operations reporting periods and have not been early adopted by the group. These standards, The results and financial position of foreign operations (none of which has the cur- amendments or interpretations are not expected to have a material impact on the rency of a hyperinflationary economy) that have a functional currency different from entity in the current or future reporting periods and on foreseeable future transac- the presentation currency are translated into the presentation currency as follows: tions. Assets and liabilities for each Balance Sheet presented are translated at the clos- ing rate at the date of that Balance Sheet. CRITICAL ACCOUNTING ESTIMATES Income and expenses for each Income Statement position are translated at aver- The preparation of the Financial Statements in conformity with IFRS accounting age exchange rates of that period, unless this is not a reasonable approximation of standards requires the use of certain critical accounting estimates. It also requires the cumulative effect of the rates prevailing on the transaction dates, in which case the management to exercise its judgement in the process of applying the Group’s income and expenses are translated at the dates of the transactions. accounting policies. The areas involving a higher degree of judgement or complex- Resulting exchange differences related to currency translation adjustment are ity, or areas where assumptions and estimates are significant to the Financial State- recognised in other comprehensive income and accumulated as a separate compo- ments, are disclosed in note 4. nent of equity. The Consolidated Statements of Cash Flow are translated at average exchange rates during the period, whereas cash and cash equivalents are translated at the spot exchange rate at the end of the reporting period. Exchange differences arising from the translation of any net investment in foreign operations and borrowings designated as quasi-equity loans are recognised in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the Statement of Comprehensive Income, as part of the gain or loss on sale where applicable. Goodwill and fair value adjustments arising on the acquisition of a foreign opera- tion are treated as assets and liabilities of the foreign operation and translated at the closing rate. 54 NOTE 3. Continued CONSOLIDATION (i) Subsidiaries Subsidiaries are all entities over which the group has control. The Group controls an Name Registered office Type of business Controlled through Direct Indirect entity when the Group is exposed to, or has rights to, variable returns from its Cavotec (Swiss) SA Switzerland Services Cavotec SA 100% involvement with the entity and could affect those returns through its power over th e Cavotec Australia Pty Ltd Australia Sales company Cavotec Group Holdings NV 100% entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Cavotec Cleantech Malaysia SDN. BHD. Malaysia Sales company Cavotec (Swiss) SA 100% The Group uses the acquisition method to account for business combinations. Cavotec Germany GmbH Germany Centre of Excellence Cavotec Group Holdings NV 100% The consideration transferred for the acquisition of a subsidiary is the fair value of Cavotec Finland OY Finland Sales company Cavotec Group Holdings NV 100% the assets transferred, the liabilities incurred, and the equity interests issued by the Cavotec France RMS SA France Sales company Cavotec Group Holdings NV 100% Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Contingent consideration i s Cavotec Group Holdings NV The Netherlands Holding Cavotec MoorMaster Ltd 100% valued based on the probability that the consideration will be paid and changes in Cavotec Hong Kong Ltd China Sales company Cavotec Group Holdings NV 100% the fair value are recognised in profit or loss. Acquisition-related costs are expensed . Cavotec India Ltd India Sales company Cavotec Group Holdings NV 100% Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition Cavotec International Ltd United Kingdom Services/Sales company Cavotec Group Holdings NV 100% date. Cavotec Micro-control AS Norway Centre of Excellence Cavotec Group Holdings NV 100% The excess of the cost of acquisition over the fair value of the identifiable net Cavotec FZE U.A.E. Sales company Cavotec Group Holdings NV 100% assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised Cavotec MoorMaster Ltd New Zealand Engineering Cavotec SA 100% directly in the Statement of Comprehensive Income. Cavotec Nederland BV The Netherlands Sales company Cavotec Group Holdings NV 100% Inter-company transactions, balances, and unrealised gains on transactions Cavotec Realty Germany BV The Netherlands Services Ipalco BV 100% between group companies are eliminated. Unrealised losses are also eliminated but are considered an impairment indicator of the asset transferred. Cavotec Realty Norway AS Norway Services Ipalco BV 100% Cavotec SA Switzerland Holding - – (ii) Transactions with non-controlling interest Cavotec Shanghai Ltd China Centre of Excellence Cavotec Group Holdings NV 100% The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in owner- Cavotec Singapore Pte Ltd Singapore Sales company Cavotec Group Holdings NV 100% ship interest results in an adjustment between the carrying amounts of the con- Cavotec Specimas SpA Italy Centre of Excellence Cavotec Group Holdings NV 100% trolling and non-controlling interests to reflect their relative interests in the subsidi- Cavotec Sverige AB Sweden Sales company Cavotec Group Holdings NV 100% ary. Any difference between the amount of the adjustment to non-controlling inter- Cavotec USA Inc. United States of America Sales company Cavotec SA 100% ests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners. Ipalco BV The Netherlands Holding/Services Cavotec Group Holdings NV 100% (iii) Scope of consolidation The consolidated Financial Statements include the statements as of 31 December During FY2024 the following changes to the Group Structure applied: PROPERTY, PLANT AND EQUIPMENT 2024 of the companies included in the scope of consolidation, which have been pre- • Cavotec Russia OOO (in liquidation) has been liquidated All property, plant and equipment is stated at historical cost less depreciation and pared in accordance with IFRS accounting standards adopted by the Group. Below is impairment. Historical cost includes expenditure that is directly attributable to the a list of companies consolidated on a line-by-line basis and the respective shares SEGMENT REPORTING acquisition of the items. held either directly or indirectly by Cavotec SA: Operating segments are reported in a manner consistent with the internal reporting Subsequent costs are included in the asset’s carrying amount or recognised as a provided to the chief operating decision-maker. The chief operating decision-maker separate asset, as appropriate, only when it is probable that future economic bene- (CODM), who is responsible for allocating resources and assessing performance of fits associated with the item will flow to the Group and the cost of the item can be the operating segments, has been identified as the Board of Directors. measured reliably. All other repairs and maintenance are charged to the Statement of Comprehensive Income during the financial period in which they are incurred. The NON-CURRENT ASSETS HELD FOR SALE classes of property plant and equipment are land and buildings, plant and equip- Non-current assets are classified as held for sale if their carrying amounts will be ment and fixtures and fittings. recovered principally through a sales transaction rather than through continuing Land is not depreciated. Depreciation of property, plant and equipment is calcu- use. For this to be the case, the asset must be available for immediate sale in its pres- lated using a straight-line method so as to expense the cost of the assets over their ent condition subject only to terms that are usual and customary for the sale of such useful lives. The rates are as follows: assets and its sale must be highly probable. Non-current assets classified as held for sale are measured at the lower of their carrying amounts and fair values less costs to sell. Property, plant and equipment and intangible assets classified as held for sale are not depreciated or amortised. 55 NOTE 3. Continued Payments associated with short-term leases of equipment and vehicles and all Provisions are made for inventories with a lower market value, or which are Years leases of low-value assets are recognised on a straight-line basis as an expense in slow-moving. If it becomes apparent that such inventory can be reused, provisions Industrial buildings 25 profit or loss. Short-term leases are leases with a lease term of 12 months or less. are reversed with inventory being revalued up to the lower of its net realisable value Building improvements 5 Low-value assets comprise IT equipment and small items of office furniture. or original cost. Unsaleable inventory is fully written off. Plant and machinery 5 to 10 INTANGIBLE ASSETS IMPAIRMENT OF NON-FINANCIAL ASSETS Laboratory equipment and miscellaneous tools 5 (i) Goodwill Assets are reviewed for impairment whenever events or changes in circumstances Furniture and office machines 5 Goodwill represents the excess of the cost of an acquisition over the fair value of the indicate that the carrying amount may not be recoverable. Intangible assets that Motor vehicles 5 net identifiable assets of the acquired business/associate at the date of acquisition. have an indefinite useful life including goodwill, are not subject to amortisation and Goodwill on acquisitions of businesses is included in intangible assets. are tested annually for impairment irrespective of whether any circumstances iden- Computer hardware 3 Goodwill is not amortised. Instead, goodwill impairment reviews are undertaken tifying a possible impairment have been identified. An impairment loss is recognised annually or more frequently if events or changes in circumstances indicate a poten- for the amount by which the asset’s carrying amount exceeds its recoverable Capital work in progress is not depreciated until commissioned. An asset’s carrying tial impairment. The carrying value of goodwill is compared to the recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to amount is written down immediately to its recoverable amount if the asset’s carrying amount, which is the higher of value in use and the fair value less costs of disposal. sell and value in use. For the purposes of assessing impairment, assets are grouped amount is greater than its estimated recoverable amount. Gains and losses on dis- Any impairment is recognised immediately as an expense and is not subsequently at the lowest levels for which there are separately identifiable cash flows (cash gen- posals are determined by comparing proceeds with carrying amount. These are reversed. Gains and losses on the disposal of an entity include the carrying amount erating units). included in the Statement of Profit or Loss. of goodwill relating to the entity sold. Leasehold improvements are depreciated over the lease term, or their estimated For the purpose of impairment testing, goodwill acquired in a business combina- FINANCIAL INSTRUMENTS useful life, if shorter. tion is allocated to each of the CGUs, or groups of CGUs, that is expected to benefit Classification and measurement of financial assets and financial liabilities from the synergies of the combination. Each unit or group of units to which the IFRS 9 contains three principal classification categories for financial assets: meas- LEASES goodwill is allocated represents the lowest level within the entity at which the good- ured at amortised cost, FVOCI and FVTPL. The classification of financial assets Assets and liabilities arising from a lease are initially measured on a present value will is monitored for internal management purposes. under IFRS 9 is generally based on the business model in which a financial asset is basis. Lease liabilities include the net present value of the following lease payments: managed and its contractual cash flow characteristics. • fixed payments (including in-substance fixed payments), less any lease incen- (ii) Research and development tives receivable Research expenditure is recognised as an expense as incurred. Costs incurred on Financial assets • variable lease payment that are based on an index or a rate, initially measured development projects (relating to the design and testing of new or improved prod- Initial recognition and measurement using the index or rate as at the commencement date ucts) are recognised as intangible assets when it is probable that the project will be a Financial assets are classified, at initial recognition, as subsequently measured at • amounts expected to be payable by the group under residual value guarantees success considering its commercial and technical feasibility and its costs can be amortised cost, fair value through other comprehensive income (OCI), and fair value • the exercise price of a purchase option if the group is reasonably certain to exer- measured reliably. It must also be probable that the intangible asset will generate through profit or loss. cise that option, and future economic benefits and that it is clearly identifiable and allocable to a specific The classification of financial assets at initial recognition depends on the financial • payments of penalties for terminating the lease, if the lease term reflects the product. asset’s contractual cash flow characteristics and the Group’s business model for group exercising that option. The expenditure capitalised comprises all directly attributable costs, including managing them. Trade receivables that do not contain a significant financing com- costs of materials, services, direct labour, and an appropriate proportion of over- ponent or for which the Group has applied the practical expedient are measured at Lease payments to be made under reasonably certain extension options are also heads. Other development expenditures that do not meet these criteria are recog- the transaction price determined under IFRS 15. included in the measurement of the liability. nised as an expense as incurred. Development costs previously recognised as an For a financial asset to be classified and measured at amortised cost or fair value The lease payments are discounted using the interest rate implicit in the lease. If expense are not recognised as an asset in a subsequent period. Capitalised devel- through OCI, it needs to give rise to cash flows that are ‘solely payments of principal that rate cannot be readily determined, which is generally the case for leases in the opment costs are recorded as intangible assets at cost and amortised from the and interest (SPPI)’ on the principal amount outstanding. This assessment is referred group, the lessee’s incremental borrowing rate is used, being the rate that the indi- point at which the asset is ready for use on a straight-line basis over its useful life, to as the SPPI test and is performed at an instrument level. vidual lessee would have to pay to borrow the funds necessary to obtain an asset of which varies from three to five years. The Group’s business model for managing financial assets refers to how it man- similar value to the right-of-use asset in a similar economic environment with similar ages its financial assets to generate cash flows. The business model determines terms, security, and conditions. (iii) Patents whether cash flows will result from collecting contractual cash flows, selling the Patents acquired in a business combination are recognised at fair value at acquisi- financial assets, or both. Right-of-use assets are measured at cost comprising the following: tion date. Patents are amortised on a straight-line basis over the period over which Purchases or sales of financial assets that require delivery of assets within a time • the amount of the initial measurement of lease liability they are valid (not exceeding 20 years) or their estimated useful life if shorter. frame established by regulation or convention in the marketplace (regular way • any lease payments made at or before the commencement date less any lease trades) are recognised on the trade date, i.e., the date that the Group commits to pur- incentives received INVENTORIES chase or sell the asset. • any initial direct costs, and Inventories are measured at the lower of acquisition cost, at weighted average cost , • restoration costs. or manufacturing cost and net realisable value. Manufacturing costs comprise all Financial assets at amortised cost (debt instruments) costs that are directly attributable to the manufacturing process, such as direct This category is the most relevant to the Group. The Group classifies its financial Right-of-use assets are generally depreciated over the shorter of the asset’s useful material and labour, direct engineering, production and tooling and other non-recur - assets as at amortised cost only if both of the following criteria are met: life and the lease term on a straight-line basis. If the group is reasonably certain to ring costs and production related overheads, (based on normal operating capacity • the asset is held within a business model whose objective is to collect the con- exercise a purchase option, the right-of-use asset is depreciated over the underlying and normal consumption of material, labour, and other production costs), including tractual cash flows, and asset’s useful life. depreciation charges. Net realisable value is the estimated selling price in the ordi- • the contractual terms give rise to cash flows that are solely payments of principal nary course of business less the estimated costs of completion and the estimated and interest variable costs necessary to make the sale. 56 NOTE 3. Continued Financial assets at amortised cost are subsequently measured using the effective calculated by considering any discount or premium on acquisition and fees or costs REVENUE RECOGNITION interest (EIR) method and are subject to impairment. Gains and losses are recog- that are an integral part of the EIR. The EIR amortisation is included as finance costs Cavotec is an engineering group that designs and manufactures automated con- nised in profit or loss when the asset is derecognised, modified, or impaired. in the statement of profit or loss. nection and electrification systems for ports and industrial applications worldwide. The Group’s financial assets at amortised cost includes trade receivables, con- Following a modification or renegotiation that does not result in de-recognition, Revenue is measured based on the consideration expected to be entitled to base tract assets under IFRS 15, other receivables and cash and cash equivalents. the Group recognise any modification gain or loss immediately in profit or loss. Any on the contract with a customer. The Group recognises revenue when it transfers gain or loss is determined by recalculating the gross carrying amount of the financia l control over a good or service to a customer. Revenue is recognised to the extent Derecognition asset by discounting the new contractual cash flows using the original effective that it is highly probable that a significant reversal in the amount of cumulative reve- A financial asset (or, where applicable, a part of a financial asset or part of a group of interest rate. nue recognised will not occur. similar financial assets) is primarily derecognised (i.e., removed from the Group’s This category generally applies to interest-bearing loans and borrowings. Revenue is measured at the fair value of the consideration received or receivable, consolidated statement of financial position) when: For more information, refer to Note 21. and represents amounts receivable for goods supplied, stated net of value added • The rights to receive cash flows from the asset have expired, or taxes, goods and service tax (GST), rebates and discounts. The Group offers multiple • The Group has transferred its rights to receive cash flows from the asset or has Derecognition element arrangements to meet its customers’ needs. These arrangements may assumed an obligation to pay the received cash flows in full without material dela y A financial liability is derecognised when the obligation under the liability is dis- involve the delivery of multiple products and/or performance of services (such as to a third party; and either (a) the Group has transferred substantially all the risks charged or cancelled or expires. When an existing financial liability is replaced by installation, commissioning, and training) and the delivery and/or performance may and rewards of the asset, or (b) the Group has neither transferred nor retained another from the same lender on substantially different terms, or the terms of an occur at different points in time or over different periods. The Group considers substantially all the risks and rewards of the asset, but has transferred control of existing liability are substantially modified, such an exchange or modification is whether there are other promises in the contract that are separate performance the asset treated as the derecognition of the original liability and the recognition of a new obligations to which a portion of the transaction price needs to be allocated. Deliver- liability. The difference in the respective carrying amounts is recognised in the state- ables of such multiple element arrangements are evaluated to estimate the selling Impairment of financial assets ment of profit or loss. price that reflects at inception the Group’s best estimate of what the selling price Further disclosures relating to impairment of financial assets are also provided in th e would be if the elements were sold on a stand-alone basis. Such arrangements gen- Risk Management on page 70. CASH AND CASH EQUIVALENTS erally include industry-specific performance and termination provisions, such as in ECLs are recognised in two stages. For credit exposures for which there has not Cash and cash equivalents includes cash on hand, deposits held at call with financial the event of substantial delays or non-delivery. been a significant increase in credit risk since initial recognition, ECLs are provided institutions and other short term, highly liquid investments with original maturities of The company has defined the following revenue streams to meet the revenue for credit losses that result from default events that are possible within the next three months or less (from the acquisition date of the investments) that are readily recognition requirements as listed in IFRS 15: 12-months (a 12-month ECL). For those credit exposures for which there has been a convertible to known amounts of cash and which are subject to an insignificant risk significant increase in credit risk since initial recognition, a loss allowance is require d of changes in value. (i) Integrated systems for credit losses expected over the remaining life of the exposure, irrespective of th e Long Term Contracts with high level of customisation based on the request of the timing of the default (a lifetime ECL). BORROWINGS customer for a complete set of port solutions. When no alternative use and right to For trade receivables and contract assets, the Group applies a simplified Borrowings are classified as current liabilities unless the Group has an unconditional payment are confirmed, revenue is recognised over time. Revenue from integrated approach in calculating ECLs. Therefore, the Group does not track changes in credi t right to defer settlement of liabilities for at least 12 months after the Balance Sheet systems is therefore recognised over time on a cost-to-cost method, i.e. based on risk, but instead recognises a loss allowance based on lifetime ECLs at each report- date. Fees paid on the establishment of an undrawn loan facility, are recognised as the proportion of contract costs incurred for work performed to date relative to the ing date. The Group has established a provision matrix that is based on its historical prepayments and amortised on a straight-line basis over the term of the facility. estimated total contract costs. The directors consider that this input method is an credit loss experience, adjusted for forward-looking factors specific to the debtors appropriate measure of the progress towards complete satisfaction of these perfor- and the economic environment. BORROWING COSTS mance obligations under IFRS 15. The group considers the credit risk of financial assets to be significantly Borrowing costs incurred for the construction of any qualifying asset are capitalised increased (stage 3) when contractual payments are 90 days overdue. The group during the period that is required to complete and prepare the asset for its intended (ii) Individual products assesses those assets on an individual basis. A financial asset is written off when use or sale. Other borrowing costs are expensed. The customer receives detailed listing of products description with related prices; there is no reasonable expectation of recovering the contractual cash flows. they are not customised, and they do not include engineering or installation, or if any PROVISIONS it represents a minimal portion of the total order. Revenues is recognised at a point in Financial liabilities Provisions are recognised when the Group has a legal or constructive obligation time based on incoterms. Initial recognition and measurement because of past events, it is more likely than not that an outflow of resources will be Financial liabilities are classified, at initial recognition, as financial liabilities at fair required to settle the obligation and the amount has been reliably estimated. The (iii) Maintenance and installation value through profit or loss as loans and borrowings and payables. All financial liabili- amount recognised is the best estimate of the cost required to settle the present Service contract for periodic maintenance or field services and installation. The ties are recognised initially at fair value and, net of directly attributable transaction obligation at the Balance Sheet date. If the effect of the time value of money is mate- Group provides installation services that are either sold separately or bundled costs. The Group’s financial liabilities include trade and other payables, loans and rial, the provision is determined by discounting the expected future cash flows at a together with the sale of equipment to a customer. The installation services can be borrowings including bank overdrafts. rate that reflects the current market assessments of the time value of money and th e obtained from other providers and do not significantly customise or modify the The Group has not designated any financial liability as at fair value through profit risks specific to the liability. equipment. Contracts for bundled sales of equipment and installation services are or loss. Provisions for warranties are recognised at the time the products are sold based comprised of two performance obligations because the promises to transfer equip- on the estimated cost using historical data for level of repairs and replacements. ment and provide installation services are capable of being distinct and separately Loans and borrowings Provisions for onerous contracts are recognised when the expected economic identifiable. Accordingly, the Group allocates the transaction price based on the rela- This is the category most relevant to the Group. After initial recognition, interest- benefits to be derived from a contract are lower than the cost of meeting the obliga- tive stand-alone selling prices of the equipment and installation services. bearing loans and borrowings are subsequently measured at amortised cost using tions under the contract. The provision is measured at the present value of the lower The Group recognises revenue from services over time, using an input method to the EIR method. Gains and losses are recognised in profit or loss when the liabilities of the expected cost of terminating the contract and the expected net cost of con- measure progress towards complete satisfaction of the service, because the cus- are derecognised as well as through the EIR amortisation process. Amortised cost is tinuing with the contract. tomer simultaneously receives and consumes the benefits provided by the Group. 57 NOTE 3. Continued Contract balances Actuarial gains and losses arising from experience adjustments and changes in Uncertain tax positions are measured either at the most likely outcome or at the Contract assets actuarial assumptions are charged or credited to equity in other comprehensive expected value, depending on which method better predicts the resolution of the A contract asset is the right to consideration in exchange for goods or services income in the period in which they arise. uncertainty. Thereby detection risk is not considered. transferred to the customer. If the Group performs by transferring goods or services The liability recognised in the Balance Sheet in respect of defined benefit pensio n Current and deferred tax balances attributable to amounts recognised directly in to a customer before the customer pays consideration or before payment is due, a plans is the present value of the defined benefit obligation at the end of the reportin g equity or in OCI are also recognised directly in equity or in OCI respectively. contract asset is recognised for the earned consideration that is conditional. period less the fair value of plan assets. The defined benefit obligation is calculated by independent actuaries using the projected unit credit method. The present value Trade receivables of the defined benefit obligation is determined by discounting the estimated future A receivable represents the Group’s right to an amount of consideration that is cash outflows using interest rates of high-quality corporate bonds that are denomi- NOTE 4. Critical accounting estimates and judgments unconditional (i.e., only the passage of time is required before payment of the con- nated in the currency in which the benefits will be paid, and that have terms to matu- sideration is due). rity approximating to the terms of the related pension obligation. Estimates and judgments are continually evaluated and are based on historical Contract liabilities (ii) Share-based payments experience and other factors, including expectations of future events that are A contract liability is the obligation to transfer goods or services to a customer for The total expense is recognised over the vesting period, which is the period over believed to be reasonable under the circumstances. which the Group has received consideration (or an amount of consideration is due) which all the specified vesting conditions are to be satisfied. At the end of each The Group makes estimates and assumptions concerning the future. The result- from the customer. If a customer pays consideration before the Group transfers period, the entity revises its estimates of the number of shares that are expected to ing accounting estimates will seldom equal the related actual results. Critical goods or services to the customer, a contract liability is recognised when the pay- vest based on the non-market vesting and service conditions. It recognises the accounting policies estimates and assumptions in the period relate to the valuation ment is made or the payment is due (whichever is earlier). Contract liabilities are rec- impact of the revision to original estimates, if any, in profit or loss, with a correspond - of deferred tax assets, the estimation of the outcome of legal proceeding, assets ognised as revenue when the Group performs under the contract. ing adjustment to equity. held for sale, and the assumptions used in the goodwill impairment test. As of the Balance Sheet dates the Group has no other significant estimates and assumptions Cost to obtain a contract DIVIDENDS AND OTHER DISTRIBUTIONS that have a significant risk of causing a material adjustment to the carrying amount The Group pays sales commission to its employees for some contract that they Distributions to the shareholders are recognised as a liability in the Group’s Financia l of assets and liabilities within the foreseeable future. obtain for bundled sales of equipment and installation services. The Group has Statements in the period in which they are approved by the Annual General Meeting. elected to apply the optional practical expedient for costs to obtain a contract which DEFERRED TAXES allows the Group to immediately expense sales commissions (included under Deferred tax assets are recognised for temporary differences between the carrying employee benefits and part of cost of sales) because the amortisation period of the Treasury shares are deducted from consolidated equity at the acquisition value. Dif- amounts for financial reporting purposes of assets and liabilities and the amounts asset that the Group otherwise would have used is one year or less. ferences between this amount and the amount received for disposing of treasury used for taxation purposes and for tax loss carry-forwards. The Group records shares are recorded in consolidated retained earnings. deferred tax assets based upon management’s estimates of future taxable profit in VALUE ADDED TAX (VAT) AND GOODS AND SERVICES TAX (GST) different tax jurisdictions. The estimations of the recoverability of deferred tax The statement of comprehensive income has been prepared so that all components INCOME TAX assets on losses carried forward are based on business plans and include the taxa- are stated exclusive of VAT or GST. All items in the Balance Sheet are also stated net of The income tax expense for the period is the tax payable on the current years taxa- ble profits that are more probable than not until the expire of tax losses, this results VAT or GST, except for receivables and payables, which include VAT or GST invoiced. ble income based on the national income tax rate for each jurisdiction adjusted by in lower estimates for years in the distant future. The actual results may differ from changes in deferred tax assets and liabilities attributable to temporary differences these estimates, due to changes in the business climate and changes in tax legisla- EMPLOYEE BENEFITS between the tax bases of assets and liabilities and their carrying amounts in the tion or by variances from the business plans used on the models. See notes 19 and Liabilities for wages and salaries, including non-monetary benefits, annual leave and Financial Statements, and to unused tax losses. 25 for additional information. accumulating sick leave expected to be settled within 12 months of the reporting Deferred tax assets and liabilities are recognised for temporary differences at the date are recognised in other payables in respect of employees’ services up to the tax rates expected to apply when the assets are recovered or liabilities are settled, LEGAL PROCEEDINGS reporting date and are measured at the amounts expected to be paid when the liabil - based on those tax rates which are enacted or substantively enacted for each juris- The Group recognises a liability when it has an obligation from a past event involving ities are settled. diction. The relevant tax rates are applied to the cumulative amounts of deductible the transfer of economic benefits and when a reasonable estimate can be made of and taxable temporary differences to measure the deferred tax asset or liability. An what the transfer might be. The Group reviews outstanding legal cases regularly to (i) Pension obligations exception is made for certain temporary differences arising from the initial recogni- assess the need for provisions in the Financial Statements. These reviews consider A defined contribution plan is a pension plan under which the Group pays fixed con- tion of an asset or a liability. No deferred tax asset or liability is recognised in relation the factors of the specific case through the use of outside legal counsel and advi- tributions into a separate entity and the Group has no legal or constructive obliga- to these temporary differences if they arose in a transaction, other than a business sors when necessary. To the extent that management’s assessment of the factors tions to pay further contributions if the fund does not hold sufficient assets to pay al l combination, that at the time of the transaction did not affect either accounting considered are not reflected in subsequent developments, the Financial Statements employees the benefits relating to employee service in the current and prior peri- profit or taxable profit and loss. Deferred tax assets are recognised for deductible could be affected. ods. A defined benefit plan is a pension plan that is not a defined contribution plan. temporary differences and unused tax losses only if it is probable that future taxable Cavotec (Swiss) SA operate a pension scheme via the employee benefits founda- amounts will be available to utilise those temporary differences and losses. Deferred tion and are affiliated with the Swiss Life Collective BVG Foundation based in Zurich. tax liabilities and assets are not recognised for temporary differences between the All benefits in accordance with the regulations are reinsured in their entirety with carrying amount and tax bases of investments in subsidiaries where the Group is Swiss Life Ltd within the framework of the corresponding contract and determined able to control the timing of the reversal of the temporary differences and it is proba- by actuarial calculations. These schemes are defined benefit plans due to the fact ble that the differences will not reverse in the foreseeable future. that Cavotec can be requested to pay restructuring contributions in the case of a Deferred tax assets and liabilities are offset when there is a legally enforceable shortfall. right to offset current tax assets and liabilities and when the deferred tax balances Typically defined benefit plans define an amount of pension benefit that an relate to the same taxation authority. Current tax assets and tax liabilities are offset employee will receive on retirement, usually dependent on one or more factors such where the entity has a legally enforceable right to offset and intends either to settle as age, years of service and compensation. on a net basis, or to realise the asset and settle the liability simultaneously. 58 NOTE 4. Continued GOODWILL IMPAIRMENT TEST NOTE 5. Revenue from contracts with customers The Group allocates the goodwill to the cash-generating units (CGUs) identified and reported according to the table below. Disaggregation of revenue from contracts with customers Net book value as of Translation Acquisitions Net book value as of The Group derives revenue from the transfer of goods and services over time and a t EUR 000s 1 January 2024 differ ences and other and dispositions Impairment 31 December 2024 a point in time in the following Divisions and geographical regions. Ports & Maritime 23,212 -92 – – 23,120 Year ended 31 December 2024 Ports & Industry 6,919 -8 – – 6,911 EUR 000s Maritime Industry Tota Total 30,131 -100 – – 30,031 Revenue from external customer Timing of revenue recognition The recoverable amount of the CGUs is determined by reference to the value in use 2024 2023 At a point in time 105,349 65,027 170,37 6 of each CGU, based on discounted estimates of the future cash flows, which were projected for the next five years based on past experiences, actual orders received, Assumptions Sensitivity Assumptions Sensitivity Over time 4,576 – 4,57 6 budgets, strategic plan, and management’s best estimate about future developments Average annual revenue Total 109,925 65,027 174,95 and market assumptions. The impairment model has been prepared based on the growth until 2029 (2028) Strategic Plan to focus on cleantech solutions. The value in use is mainly driven by with gross margin Year ended 31 December 2023 Ports & the terminal value, which is influenced by the terminal growth rate and discount rate. unchanged compared EUR 000s Maritime Industry Tota to business plan 8.2% -0.5% 6.5% -3.7% The growth rates are related to industry specific trends with the support of external Revenue from external customer macroeconomic sources of data and an assessment as to the ability of the Com- Normalised gross margin 33.1% 29.9% 32.2% 30.1% pany to take advantage of these market developments considering orders received, Timing of revenue recognition WACC pre-tax 12.6% 18.6% 12.3% 17.1% commercial negotiations currently in place and future expectations. At a point in time 110,712 66,045 176,75 7 Industry goodwill Over time 3,976 – 3,97 6 The following table presents the assumptions used to determine the value in use for impairment test purposes: The impairment tests for goodwill did not lead to any need for impairment in the Total 114,688 66,045 180,73 current financial year. The recoverable amount exceeded the net carrying amount by Terminal growth rate WACC EUR 40.7 million. In the prior year, the difference amounted to EUR 32.0 million. The Year ended 31 December 2024 following changes in material assumptions would lead to a situation where the value 2024 2023 2024 2023 EUR 000s AMER EMEA APAC Tota in use would equate to the net carrying amount. Ports & Maritime 2.00% 2.00% 12.6% 12.3% Ports & Maritime 17,406 37,300 55,219 109,92 5 Industry 1.50% 1.50% 12.0% 11.7% 2024 2023 Industry 5,915 44,234 14,878 65,02 7 Assumptions Sensitivity Assumptions Sensitivity Total 23,321 81,534 70,097 174,95 The pre-tax weighted average cost of capital used for impairment test purposes are Average annual revenue slightly different in the CGUs because of the different risks in those markets. growth until 2029 (2028) Year ended 31 December 2023 with gross margin EUR 000s AMER EMEA APAC Tota Ports & Maritime goodwill unchanged compared Ports & Maritime 18,239 45,726 50,723 114,68 8 to business plan 8.7% 4.9% 8.7% 5.6% As at the date of the impairment test, no impairment of goodwill resulted. The recov- Industry 4,751 42,228 19,067 66,04 5 erable amount exceeded the net carrying amount by EUR 44.2 million. In the prior Normalised gross margin 33.7% 29.0% 30.6% 27.4% year, the difference amounted to EUR 38.6 million. The following changes in material Total 22,990 87,954 69,790 180,73 WACC pre-tax 12.0% 22.0% 11.7% 20.8% assumptions would lead to a situation where the value in use would equate to the net carrying amount. Assets and liabilities related to contract with customers The Group has recognised the following assets and liabilities related to contracts with customers: EUR 000s 31 Dec. 2024 31 Dec. 202 Current Assets/(Liabilities) Contract Assets 830 2,86 2 Contract Liabilities (17,935) (19,268 ) Total (17,105) (16,406 The year-over-year decreases in both contract liabilities by EUR 1.3 million and contract assets by EUR 2.0 million are entirely attributable to revenue recognition. 59 NOTE 6. Other income NOTE 9. Assets held for sale NOTE 11. Income taxes EUR 000s 2024 2023 As of 31 December 2024, assets held for sale amount to zero. The Trondheim build - EUR 000s 2024 2023 ing in Norway, previously classified as an asset held for sale with a book value of Carriage, insurance and freight 622 1,042 Current tax (3,700) (4,109) EUR 1.8 million as of 2023, was derecognised following the sale in February 2024, Exchange gains and losses (171) (812) reducing the asset value to zero. Deferred tax (163) 638 Other miscellaneous income 885 1,845 Other taxes (503) (112) Total 1,336 2,076 Total (4,366) (3,583) NOTE 10. Net financial costs The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to the profits of the con- solidated entities as follows: NOTE 7. Employee benefit costs EUR 000s 2024 2023 Interest income 35 18 EUR 000s 2024 2023 EUR 000s 2024 2023 Interest expense (2,573) (3,117) Tax on consolidated pre-tax income at Group rate 20.1% (1,648) 20.4% (766) Salaries and wages (41,456) (36,584) Amortisation of issuance costs (32) (354) Tax effect of loss-making subsidiaries Social security contributions (7,484) (6,547) Interest expenses, net (2,570) (3,453) for which no DTA is recognised (4,673) (3,480) Other employee benefits (4,488) (4,764) Currency exchange difference, net (113) (16) Tax effect of non-taxable income Total (53,428) (47,895) Total (2,682) (3,470) included in profit before tax 2,096 1,278 Tax on non-deductible expenses (141) (615) The number of full-time equivalent employees was 708 1) (2023: 664). Interest expense decreased as a mixed effect of lower interest rates and the partial Write down of previously repayment of the Revolving Credit Facility. recognised DTAs – – 1) Number of full-time equivalent employees including externals. Utilisation of previously unrecognised DTA – – Total (4,366) (3,583) NOTE 8. Operating expenses The Group operates in many jurisdictions where statutory tax rates vary from 0% to 35.0%. The weighted average applicable tax rate was 20.1% (2023: 20.4%). EUR 000s 2024 2023 Transportation expenses (667) (933) External services (7,180) (6,986) Travelling expenses (3,528) (2,724) General expenses (6,007) (5,969) Utility expenses (1,409) (1,027) Reversal of credit losses/(Credit losses) 6 (191) Warranty costs (2,324) (1,462) Total (21,109) (19,292) 60 NOTE 12. Trade receivables and contract assets NOTE 15. Inventories EUR 000s 31 Dec. 2024 31 Dec. 2023 EUR 000s 31 Dec. 2024 31 Dec. 2023 EUR 000s 2024 2023 Trade receivables 27,559 30,178 Raw materials 19,215 20,202 Opening balance (2,896) (2,773) Provision for doubtful debts Finished goods 19,261 20,123 Provision used during the year 703 923 (see page 70 Risk Management) (1,396) (2,236) Write off inventory (573) - Provision recorded in the year (340) (1,097) Contract assets 830 2,862 Provision for slow moving inventories (2,348) (2,896) Provision reversed not used in the year 199 – Total 26,993 30,803 Total 35,555 37,429 Currency exchange difference (14) 51 The movement of the provision for doubtful Closing balance (2,348) (2,896) debts is summarised below: As part of our ongoing efforts to optimize inventory management, the Group Opening balance (2,236) (2,936) c onducted a comprehensive review of aged and obsolete stock, leading to a write- off of EUR 0.6 million. The movement of the provision for slow moving inventories is Provision recorded in the year (1,063) (911) summarised below: Provision used in the year 170 927 Provision reversed not used in the year 1,781 611 Currency exchange difference (48) 73 Closing balance (1,396) (2,236) NOTE 16. Property, plant and equipment Contract assets include EUR 0.8 million (2023: 2.9 million) of unbilled work in pro- EUR 000s Land & buildings Plant & equipment Fixtures & fittings Total gress in relation to long term contract revenue recognised under percentage of Year ended 31 December 2023 completion. Please refer to note 5. Opening net book value 2,223 2,897 821 5,941 Additions 10 797 104 911 Disposals (5) – (3) (8) NOTE 13. Tax assets Depreciation (143) (994) (249) (1,386) Currency exchange differences – (39) (5) (44) EUR 000s 31 Dec. 2024 31 Dec. 2023 Closing net book value 2,085 2,661 668 5,414 Tax assets 2,451 385 At 31 December 2023 VAT recoverable – 4,333 Cost 3,863 19,773 4,618 28,254 Total 2,451 4,718 Accumulated depreciation (1,778) (17,112) (3,950) (22,840) Net book amount 2,085 2,661 668 5,414 Year ended 31 December 2024 NOTE 14. Other current receivables Opening net book value 2,085 2,661 668 5,414 Additions 5 727 172 904 EUR 000s 31 Dec. 2024 31 Dec. 2023 Disposals (53) (14) (2) (69) Deposits 222 183 Depreciation (43) (779) (195) (1,017) Prepayments 5,891 3,905 Currency exchange differences – 129 1 130 Other receivables 357 861 Closing net book value 1,994 2,723 645 5,362 VAT recoverable 3,429 - At 31 December 2024 Total 9,899 4,949 Cost 3,865 19,783 4,410 28,058 Accumulated depreciation (1,871) (17,060) (3,765) (22,696) Net book amount 1,994 2,723 645 5,362 61 NOTE 16. Continued LEASES NOTE 17. Intangible assets Amounts recognised in the balance sheet The Balance Sheet shows the following amounts relating to leases: EUR 000s Goodwill Patents & trademarks R&D and other Total EUR 000s 31 Dec. 2024 31 Dec. 2023 Year ended 31 December 2023 Right of use Opening net book value 30,200 111 8,610 38,920 Land & building 12,152 11,283 Additions – 4 620 624 Plant & equipment 329 182 Impairment – – (612) (612) Fixtures & fittings 45 64 Amortisation – (15) (1,384) (1,398) Total right of use 12,526 11,529 Currency exchange differences (69) (6) (146) (221) Closing net book value 30,131 96 7,088 37,315 At 31 December 2023 EUR 000s 31 Dec. 2024 31 Dec. 2023 Cost 30,131 6,515 11,464 48,110 Lease liabilities Accumulated amortisation – (6,419) (4,376) (10,795) Current (2,566) (2,527) Net book amount 30,131 96 7,088 37,315 Total (2,566) (2,527) Year ended 31 December 2024 Non current (10,160) (9,167) Opening net book value 30,131 96 7,088 37,315 Total (10,160) (9,167) Additions – 4 59 63 Amounts recognised in the income statement Impairment – – (100) (100) The statement of profit or loss shows the following amounts relating to leases: Amortisation – (13) (1,432) (1,445) Currency exchange differences (100) (6) (126) (231) EUR 000s 2024 2023 Closing net book value 30,031 83 5,490 35,604 Depreciation charge of Right of Use assets Land & building (2,935) (3,169) At 31 December 2024 Plant & equipment (160) (100) Cost 30,031 6,495 11,291 47,817 Fixtures & fittings (34) (42) Accumulated amortisation – (6,412) (5,801) (12,213) Total depreciation charge of right Net book amount 30,031 83 5,490 35,604 of use assets (3,129) (3,311) Interest expenses (403) (363) For more details on goodwill impairment testing please refer to note 4. The following table summarises the movements of the right-of-use assets: EUR 000s 31 Dec. 2024 31 Dec. 2023 Right of use assets at January 1 11,529 13,213 Additions 3,408 454 Lease contract terminations - (172) Depreciation charge (3,129) (3,311) Currency translation effects 718 1,345 Total right of use assets at December 31 12,526 11,529 62 NOTE 18. Non-current financial assets NOTE 20. Other non-current receivables NOTE 23. Tax liabilities EUR 000s 31 Dec. 2024 31 Dec. 2023 Other non-current receivables includes deposits for Cavotec Italy building and EUR 000s 31 Dec,2024 31 Dec,2023 machinery EUR 0.8 million (2023: EUR 0.9 million). Financial receivables 288 68 Tax liabilities (2,320) (3,649) Total 288 68 VAT payable – (1,462) Total (2,320) (5,111) NOTE 21. Non Current Financial Liabilities NOTE 19. Deferred tax assets EUR 000s 31 Dec, 2024 31 Dec,2023 Credit facility non-current portion (14,000) (22,000) NOTE 24. Other current liabilities EUR 000s 31 Dec. 2024 31 Dec. 2023 Unamortised issuance costs 399 532 Deferred tax assets to be recovered within Total (13,601) (21,468) 12 months 1,593 1,853 EUR 000s 31 Dec,2024 31 Dec,2023 Deferred tax assets to be recovered after more Employee entitlements (5,523) (6,162) than 12 months 5,070 5,044 In June 2020, Cavotec secured long-term financing by signing a five years agree- ment with Credit Suisse and others, (which has been extended up to 2027) to pro- Accrued expenses and other (6,056) (5,158) Total 6,663 6,897 vide a EUR 40 million single currency term and multicurrency revolving credit facility. VAT payable (1,278) – Syndication costs and upfront fees of EUR 1.437 million were paid during 2020 and EUR 000s 31 Dec. 2024 31 Dec. 2023 Total (12,857) (11,320) are amortised over the extended duration of the facility. Provisions for warranty, doubtful accounts and others 725 1,209 EUR 000s 31 Dec,2024 31 Dec,2023 Employee entitlements include mainly accrued wages and salaries, holidays and Bank overdrafts 3.27% – other personnel liabilities. Losses carried forward 3,358 3,054 Inventory 1,405 1,918 Long term debt 5.09% 9.47% PPE and intangible assets 24 3 Interest bearing liabilities 5.08% 9.47% Accrued expenses not currently deductible 178 35 NOTE 25. Deferred tax liabilities The average cost of the interest bearing liabilities for 2024 was lower compared to Others temporary differences 973 678 the previous year mainly due to the lower interest margin driven by the improved Total 6,663 6,897 result of the Group, and the decrease of the interbank interest rates utilised as base EUR 000s 31 Dec, 2024 31 Dec,2023 rates for the long term debt interest calculation. Deferred tax liabilities to be released within 12 The deferred tax assets arose as a consequence of the recognition of temporary months (424) (208) differences on provisions relative to doubtful accounts, slow moving inventories and warranties, which are not tax deductible currently and become deductible for tax Deferred tax liabilities to be released after more than 12 months (1,018) (1,043) purposes when utilised, as well as to tax losses. The deferred tax assets, include an NOTE 22. Trade payables amount of EUR 3.4 million related to carried-forward tax losses. These are the result Total (1,442) (1,251) of the losses over the last financial years following the disposal of the Airports busi- ness. They relate to the one-off cost and will not recur in the future. The Group has EUR 000s 31 Dec,2024 31 Dec,2023 concluded that the deferred tax assets will be recoverable using the estimated EUR 000s 31 Dec,2024 31 Dec,2023 PPE and intangible assets (524) (493) future taxable income based on the approved business plans and budgets. The Trade payables (21,900) (26,004) Group did not recognise deferred income tax assets on losses carried forward of Untaxed reserves (494) (549) EUR 123.8 million (2023: EUR 208 million). The losses carried forward expire after Contract liabilities (17,935) (19,268) Other (424) (209) seven years in Switzerland and amount to EUR 62.6 million of which expire within two Total (39,835) (45,272) Total (1,442) (1,251) to five years. In Germany tax losses amounts to 8.8 million can be carried forward indefinitely, but only 60% (temporarily 70% from 2024 to 2027) of taxable income above EUR 1 million can be offset. A transfer of more than 50% of shares within five years may lead to forfeiture of loss carryforwards. The remaining part is related to the US where, since the implementation of the new tax reform, losses carried for- ward accumulated until 2017 still expire in 20 years, while starting from 2018, they never expire but they will only be offsetable up to 80%. 63 NOTE 26. Provision for risks and charges EUR 000s 31 Dec,2024 31 Dec, 2023 Provision for risk and charges, current (3,231) (2,171) Provision for risk and charges, non-current (1,321) (1,794) Total (4,552) (3,965) Reversed EUR 000s 1 Jan, 2024 Recorded Used not used Exchange diff 31Dec. 2024 Provision for warranty (3,299) (1,390) 99 575 (26) (4,041) Provision for taxation (300) (129) 300 – – (129) Other provisions (366) (17) – – 1 (382) Total (3,965) (1,536) 399 575 (25) (4,552) The warranty provision reflects historic experience of the cost to repair or replace defective products, as well as certain information regarding product failure experienced dur- ing production, installation or testing of products. The provision for taxation is built for expected results of ongoing tax inspections. NOTE 27. PENSION PLAN The Group operates defined benefit pension plans in Switzerland, Italy, Germany and 31 December 2024 31 Dec. 2023 Middle East. EUR 000s Switzerland Italy U.A.E. Germany Total Total Cavotec (Swiss) SA is affiliated to the Swiss Life Collective BVG Foundation based in Zurich. This pension solution fully also reinsures the risks of disability, death, and Present value of defined benefit obligation (DBO) (1,546) – – – (1,546) (1,665) longevity. Swiss Life invests the vested pension capital and provides a 100% capital Fair value of plan assets 1,161 – – 125 1,286 1,368 and interest guarantee. Certain features of Swiss pension plans required by law pre- Deficit of funded plans (385) – – 125 (260) (297) clude the plans being categorised as defined contribution plans. In Italy, the provisions for benefits upon termination of employment, accrued for Present value of unfunded obligations – (207) (62) (382) (651) (272) employee retirement, are determined using actuarial techniques and regulated by Total as reported in the balance sheet (385) (207) (62) (257) (911) (569) the Italian Civil Code. The benefit is paid upon retirement as a lump sum, the amount of which corresponds to the total of the provisions accrued during the employees’ service period based on payroll costs as revalued until retirement. In addition, the Group has liabilities from defined contribution plan for an amount of EUR 0.9 million. In U.A.E., the Service Gratuity Plan is a defined benefit plan. Benefits under these plans are paid upon termination of employment and consist of payments based on seniority. CAVOTEC | ANNUAL AND SUSTAINABILITY REPORT 2024 64 NOTE 27. Continued The movement in the defined benefit obligation over the year is as follows: 2024 2023 EUR 000s Switzerland Italy U.A.E. Germany Total Total At 1 January (1,665) (215) (57) - (1,937) (3,117) Service cost: Current service cost (172) – (8) (376) (556) (178) Past service cost 10 – – – 10 – Interest expenses (22) (7) (3) (9) (41) (76) Cash flow: Benefit payments from plan assets 517 – – – 517 1,627 Benefit payments from employer – 19 – – 19 125 Participant contributions (171) – – – (171) (154) Insurance premium for risk benefits 37 – – – 37 22 Other significant event: Increase (decrease) due to effect of any business combinations/divestitures/transfers – – – – – – Remeasurements: Effect of changes in demographic assumptions (3) – – – (3) 2 Effect of changes in financial assumptions (51) (5) – – (56) (102) Effect of experience adjustments (53) 1 3 3 (46) 28 Exchange differences 28 – 3 – 30 (115) At 31 December (1,546) (207) (62) (382) (2,197) (1,937) The movement in the fair value of plan assets over the year is as follows: 2024 2023 EUR 000s Switzerland Italy U.A.E. Germany Total Total At 1 January 1,368 – – – 1,368 2,616 Interest Income 20 – – – 20 65 Cash flow: Employer contributions 171 19 – 125 315 279 Participant contributions 171 – – – 171 154 Benefit payments to plan (517) – – – (517) (1,627) Benefit payments from employer – (19) – – (19) (125) Administrative expenses paid from plan assets (14) – – – (14) (14) Insurance premium for risk benefits (37) – – – (37) (22) Remeasurements: Return on plan assets (excluding interest income) 22 – – – 22 (56) Exchange differences (24) – – – (24) 99 At 31 December 1,161 – – 125 1,286 1,368 65 NOTE 27. Continued The amount recognised in the income statement and other comprehensive income are as follows: 2024 2023 EUR 000s Switzerland Italy U.A.E. Germany Total Total Service cost: Current service cost 172 – 8 376 556 178 Past service cost (10) – – – (10) – Total Service cost 162 – 8 376 546 178 Net interest cost: Interest expense on DBO 22 7 3 9 41 76 Interest (income) on plan assets (20) – – – (20) 65 Total net interest cost 2 7 3 9 21 141 Administrative expenses and/or taxes (not reserved within DBO) 14 – – – 14 14 Defined benefit cost included in the Income Statement 178 7 11 385 581 333 Effect of changes in demographic assumptions 3 – – – 3 (3) Effect of changes in financial assumptions 51 5 – – 56 102 Effect of experience adjustments 53 (1) (3) (3) 46 (28) Return on plan assets (excluding interest income) (22) – – – (22) 56 Exchange Differences (22) – – – (22) – Effect of deferred taxes (18) – – – (18) (27) Total remeasurements included in Other Comprehensive Income 45 4 (3) (3) 43 99 The Group expects to pay EUR 0.1 million in contribution to defined benefit plans in 2024 concerning the amount to be paid in 2025 (EUR 0.1 million was the expectation in 2023 concerning the amount to be paid in 2024). The principal actuarial assumptions were as follows: 2024 2023 Switzerland Italy Germany U.A.E. Switzerland Italy U.A.E. Discount rate 1.00% 3.40% 3.40% 5.82% 1.40% 3.80% n/a Salary increases 1.20% n/a n/a n/a 1.30% n/a n/a Inflation 1.00% 2.00% 2.00% n/a 1.10% 2.50% n/a The principal demographic assumptions were as follows: 2024 2023 Switzerland Italy Germany U.A.E. Switzerland Italy U.A.E. Life expectancy BVG 2020 GT n/a n/a n/a BVG 2020 GT n/a n/a In accordance with In accordance with normal (maximum) In accordance with normal (maximum) Retirement age 65 current Italian legislation current german legislation retirement age of 60 65 current Italian legislation retirement age of 60 60% pension / 60% pension / Benefit at retirement 40% lumpsum n/a – – 40% lumpsum n/a – Voluntary turnover n/a 4.0% n/a n/a – 8.2% n/a Involuntary turnover (including death and disability) n/a 4.0% n/a n/a – 1.8% n/a The following table presents a sensitivity analysis showing how the defined benefit obligation would have been affected by changes in the relevant actuarial assumption that were reasonably possible at the balance sheet date. This sensitivity applies to the defined benefit obligation only, and not to the net defined benefit pension liability in its entirety, the measurement of which is driven by several factors including, in addition to the assumptions below, the fair value of plan assets. 2024 2023 Switzerland Italy Germany U.A.E. Switzerland Italy U.A.E. Discount rate +0.50% (1,476) (196) (245) (64) (1,608) (203) – Discount rate -0.50% (1,623) (218) (213) (69) (1,725) (227) – 66 NOTE 28. SHARE CAPITAL NOTE 29. NOTE 30. Earnings per share The table below set forth the changes occurred in the share capital of the Group. EUR 000s 2024 2023 Both the basic and diluted earnings per share are calculated using the net results Currency translation reserves 19,910 19,544 attributable to shareholders of Cavotec SA & Subsidiaries as the numerator. Number of ordinary shares Share premium reserve (74,814) (74,814) EUR 000s 2024 2023 EUR 000s (fully paid) Share capital Actuarial reserve (10) (10) Profit/(Loss) for the year 3,840 180 Balance at 31 December 2023 106,696,030 (54,130) Reserve for LTIP – (132) Attributable to: Balance at 31 December 2024 106,696,030 (54,130) Revaluation reserve 132 89 Equity holders of the Group 3,840 180 Total (54,782) (55,323) Total 3,840 180 The share premium reserve was created following the Contribution Agreement dated 3 October 2011 between Cavotec SA and the former shareholders of Cavotec Weighted-average number of shares outstanding 106,696,030 104,103,112 MSL and increased in 2018 in connection with the Rights issue. Basic and diluted earnings per share attributed to In June 2022, AGM adopted the Board of Directors’ proposal to reduce the cur- the equity holders of the Group 0.036 0.002 rent share capital of CHF 120,631,296 by CHF 54,661,056 to CHF 65,970,240 by way of reducing the nominal value of the registered shares from CHF 1.28 by CHF 0.58 to CHF 0.70 and to allocate the nominal value reduction amount to the share premium reserve, which is increased from CHF 19,018,227 to CHF 73,679,283. In March 2023, an extraordinary general meeting approved the Board’s proposal NOTE 31. Segment information to increase the company’s nominal share capital. The Board subsequently imple- mented the increase of the Company’s share capital in the amount of CHF 8,716,981.00, from the current share capital of CHF 65,970,240.00 to CHF Operating segments have been determined based on the Group Management struc - 74,687,221.00, through the issuance of 12,452,830 new shares of the Company. The ture in place and on the management information and used by the CODM to make shares were placed at a price of SEK 13.25 per share, consequently raising proceeds strategic decisions. of approximately SEK 165 million before transaction costs. This capital increase also contributed to the increase in the share premium reserve. The two operating segments are: The currency translation reserve comprises all foreign exchange differences aris- • Ports & Maritime – development, manufacture and service of innovative automa- ing from the translation of the Financial Statements of foreign operations into Euro. tion and electrification technologies for the global ports and maritime sectors. • Industry – development, manufacture and service of electrification and radio control products for industrial applications, such as cranes, energy, processing and transportation, mining, and tunnelling. Other information that is not reportable has been combined and disclosed within “Other reconciling items” which mainly include not allocated head office costs. 67 NOTE 31. Continued Information by operating segment for the year ended 31 December, 2024 for each operating segment is summarised below: NOTE 32. Related party disclosure Other reconciling EUR 000s Ports & Maritime Industry items Total Cavotec SA is the legal parent of the Group. Details of Cavotec SA subsidiaries can be found in note 3. Year ended 31 December 2024 The Group’s key management personnel comprises the Chief Executive Officer Revenue from sales of goods and services 109,925 65,027 – 174,952 and the members of Cavotec Management Team (CMT). Their total remuneration, Other income 687 649 – 1,336 including salary and other short term benefits, amounted to a total of EUR 3.4 million (2023: 3.4 million). The total compensation also includes compensation to CMT Operating expenses before depreciation and amortisation (92,853) (60,296) (6,462) (159,611) members’ related parties. Gross Operating Result 17,759 5,380 (6,462) 16,677 To ensure its independence in fulfilling its supervisory duties, the remuneration of the Board of Directors is fixed and does not contain any variable component. Information by operating segment for the year ended 31 December 2023 for each operating segment is summarised below: The remuneration elements for the Management Team consist of four compo- nents: salary, pension, other benefits, performance-based non-equity cash com- Other reconciling pensation (“STIP”) and performance-based equity-based incentives (“LTIP”). The EUR 000s Ports & Maritime Industry items Total short-term incentive plan STIP is the cash-based element of the variable pay for inter alia the Management Team. The LTIP is a three-year performance share-based Year ended 31 December 2023 incentive plan. Its purpose is to foster long-term value creation for the Group by Revenue from sales of goods and services 114,688 66,045 – 180,734 providing the Management Team and other eligible key managers. Other income 1,048 1,028 – 2,076 Operating expenses before depreciation and amortisation (101,237) (61,903) (5,266) (168,406) Gross Operating Result 14,499 5,171 (5,266) 14,404 The CODM assesses the performance of the operating segments based on gross operating result EBITDA. A reconciliation of gross operating result to profit before income tax is provided as follows: Ports & Maritime Industry EUR 000s 2024 2023 2024 2023 Gross operating result for operating segments 13,780 11,228 2,896 3,177 Goodwill impairment & other operational write-downs (119) (927) (73) (156) Depreciation (2,400) (2,749) (1,747) (1,944) Amortisation (987) (978) (457) (421) Financial (costs)/income, net (1,619) (2,152) (1,063) (1,318) Other financial items (3) (9) (2) 14 Profit/(Loss) before income tax 8,652 4,413 (446) (648) Third party revenues for each operating segment analysed by significant geographical segment is summarised below: EUR 000s AMER EMEA A PAC Total EUR 000s AMER EMEA A PAC Total Year ended 31 December 2024 Year ended 31 December 2023 Ports & Maritime 17,406 37,300 55,219 109,925 Ports & Maritime 18,239 45,726 50,723 114,688 Industry 5,915 44,234 14,878 65,027 Industry 4,751 42,228 19,067 66,045 Total 23,321 81,534 70,097 174,952 Total 22,990 87,954 69,790 180,734 The consolidated revenues of the Group are generated principally outside of Switzer land, where the company is domiciled, and operations in Switzerland are rela - tively insignificant. Due to the nature of the business, no single country represents a significant percentage of Group revenues. 68 NOTE 32. Continued NOTE 36. Commitments Short-term Post-employment Other long-term Termination Share-based EUR 000s employee benefits benefits benefits benefit payment Total The following table details the commitments associated with Year ended 31 December 2024 Cavotec SA and its subsidiaries. Chief Executive Officer 769 278 - – - 1,047 EUR 000s 2024 2023 Cavotec Management Team 1,910 457 - – - 2,367 Board of Directors 265 48 – – – 313 Capital commitments Within one year 40 313 Total remuneration 2,944 783 - – - 3,727 Later than one, not later than two years 22 101 Short-term Post-employment Other long-term Termination Share-based Later than two, not later than five years 9 30 EUR 000s employee benefits benefits benefits benefit payment Total Total 71 444 Year ended 31 December 2023 Chief Executive Officer 612 367 – – 25 1,004 Cavotec Management Team 2,044 357 – – 43 2,444 Board of Directors 265 23 – – - 288 Note 37. Securities and collaterals Total remuneration 2,921 747 – – 68 3,736 As at 31 December 2024, as last year, there were no real estate related to loans. In FY2024 there were no transactions with related parties controlled or influenced by Board members. NOTE 33. Remuneration of auditors NOTE 34. Legal risks NOTE 38. Subsequent events During the year the following fees were paid or payable for services provided by the As a global company with a diverse business portfolio, the Group is exposed to SANCTIONS TOWARDS RUSSIA auditors of the entity, its related practices and non-related audit firms. numerous legal risks, particularly in the areas of product liability, competition, and The Group has a very limited exposure to the region considering that the subsidiary tax assessments. The outcome of any current or future proceedings cannot be in Russia is liquidated and there is no project ongoing in the region. The Group is EUR 000s 2024 2023 predicted. It is therefore possible that legal or regulatory judgments or future carefully monitoring the evolution of the situation, having a specific focus on the Audit services settlements could give rise to expenses that are not covered, or not fully covered, sanctions, that have been or will be imposed. by insurers’ compensation payments and could significantly affect our revenues PricewaterhouseCoopers 959 808 and earnings. ORGANISATIONAL CHANGES Other audit firms 100 93 New members of Cavotec Management Team appointed after the end of 2024; Total audit services 1,059 901 Jonathan Eriksson appointed Head of Industry Division, Nicklas Vedin appointed Head of Ports & Maritime Division. Patrick Mares, in Group Management since 2019, Other services performed by audit firms: appointed Product Management and Chief Technology Officer. NOTE 35. Contingencies Taxation PricewaterhouseCoopers 63 132 EUR 000s 2024 2023 Other audit firms 2 – Advance payments and performance bonds 4,194 4,800 Total 65 132 Financial guarantees 100 100 Other services: Other guarantees 8,060 7,224 PricewaterhouseCoopers 26 35 Total 12,354 12,124 Other audit firms – – Total 26 35 The items listed under Contingencies are mainly warranty bonds (under “other guarantees”), performance and advance payment bonds. On the total of contingen- Total non audit services 91 167 cies EUR 5.2 million will expire within one year. There is no expectation of any significant cash outflow from the outstanding bonds. 69 FINANCIAL STATEMENTS Consolidated Financial Statements Notes to the Financial Statements Risk Management Statutory Financial Statements Notes to the Financial Statements Risk management The Group’s activities expose it to a variety of financial risks: market risk (including At 31 December 2024, had the Euro weakened/strengthened by 10% against for- 2024 currency risk and interest rate risk), credit risk and liquidity risk. The Group’s overall eign currencies to which the Group is exposed, with all other variables held constant, Currency Average rate Year end rate risk management program focuses on the unpredictability of financial markets and profit for the year and equity would have been EUR 150 thousands higher/lower seeks to minimise potential adverse effects on the financial performance of the Group. AED 3.98 3.82 (2023: 336 thousands). This is mainly a result of foreign exchange gains/losses on The Board sets the policy for the Group’s centralised treasury operation and its translation of financial assets and liabilities denominated in currencies other than ARS 990.74 1072.80 activities are subject to a set of controls commensurate with the magnitude of the Euro and in respect of operations in non-Euro jurisdictions for financial assets and AUD 1.54 1.68 borrowings and investments and Group wide exposures under its management. The liabilities not in their local currency. Group treasury’s primary role is to manage liquidity, funding, investments and coun- BRL 5.83 6.42 A sensitivity of 10% has been selected as this is considered reasonable given the terparty credit risk arising with financial institutions. It also manages the Group’s BHD 0.41 0.39 current level of exchange rates and the volatility observed both on an historical basis market risk exposures, including risks arising from volatility in currency and interest and market expectations for future moves. In order to assess the potential impact on CAD 1.48 1.49 rates. The treasury function is not a profit centre and the objective is to manage risk the Income Statement assets and liabilities in the same currency used by the rele- at optimum cost. CHF 0.95 0.94 vant entity in its reporting were excluded from the sensitivity analysis. The financial risk is managed at the Group and regional level through a series of DKK 7.46 7.46 policies and procedures set and reviewed by the CFO. The Group treasury applies EUR 1.00 1.00 these policies together with the Presidents of the Divisions and the local finance managers. The Group uses different methods to measure different types of risk to GBP 0.85 0.83 which it is exposed. These methods include sensitivity analyses in the case of inter- HKD 8.44 8.07 est rate risk and currency risk while ageing analyses of receivables is used to assess INR 90.56 88.93 credit risk. KRW 1475.40 1532.15 MARKET RISK NOK 11.63 11.79 Currency risk NZD 1.79 1.85 Generally, the Group offers customers the option of paying in local currencies QAR 3.94 3.79 through our global sales organisation. As a result, the Group is continuously exposed to currency risks in accounts receivables denominated in foreign currency and in RMB 7.79 7.58 future sales to foreign customers. This issue of international pricing is under con- RUB 87.72 115.48 stant attention at the highest levels of management. As the Group trades across SEK 11.43 11.46 many countries, purchasing and selling in various currencies, there is a natural hedge within the Group’s overall activities. SGD 1.44 1.42 The exchange rates listed here below are used to prepare the Financial Statements. USD 1.08 1.04 ZAR 19.83 19.62 70 FINANCIAL STATEMENTS Risk Management 2024 2023 EUR 000s EUR -10% EUR +10% EUR -10% EUR +10% Receivables 1,204 (1,204) 1,226 (1,226) Payables (1,490) 1,490 (1,523) 1,523 Financial assets 449 (449) 633 (633) Financial liabilities (13) 13 – – Total increase/(decrease) 150 (150) 336 (336) The carrying amounts of the Group’s trade receivables, trade payables and contract liabilities are held in the following currencies: 2024 2023 Trade payables and Trade payables and EUR 000s Receivables contract liabilities Receivables contract liabilities EUR 14,123 (24,933) 15,679 (30,046) USD 5,332 (4,285) 4,781 (7,182) RMB 2,520 (6,663) 2,566 (5,638) AED 73 (11) – (25) GBP 628 (381) 713 (51) SEK 165 (281) 798 (317) NOK 444 (91) 1,282 (124) AUD 1,873 (2,279) 1,713 (878) CHF – (94) – (282) INR 786 (695) 372 (629) RUB – – – – BHD – – – – Other 219 (122) 38 (100) Total 26,163 (39,835) 27,942 (45,272) 71 FINANCIAL STATEMENTS Risk Management Financial assets and financial liabilities held at year end are held in the following currencies (data include lease liabilities): Interest rate risk Interest rate risk management is aimed at balancing the structure of the debt, mini- 2024 2023 mising borrowing costs over time and limiting the volatility of results. The Group is EUR 000s Financial assets Financial liabilities Financial assets Financial liabilities party to fixed interest rate loan agreements in the normal course of business in order to eliminate the exposure to increases in interest rates in the future. The amount of EUR 7,397 (13,601) 8,798 (21,468) floating rate debt is the main factor that could impact the Statement of Comprehen- USD 1,706 – 1,308 – sive Income in the event of an increase in market rates. At 31 December, 2024 100% RMB 672 – 1,547 – of the debt was floating rate (2023: 100%). A fluctuation of 1% in interest rates would have in absolute terms an impact of EUR 140 thousands in the profit and loss state- AED 55 – 37 – ment. GBP 146 – 429 – SEK 231 – 270 – Fair value estimation Financial assets and liabilities recorded at fair value in the Consolidated Financial NOK 331 – 66 – Statements are categorised based upon the level of judgement associated with the AUD 325 – 1,119 – inputs used to measure their fair value. There are three hierarchical levels, based on CHF 129 (128) 74 – an increasing amount of subjectivity associated with the inputs to derive fair valua- tion for these assets and liabilities, which are as follows: HKD 24 – 21 – • Level 1: Determination of fair value based on quoted prices (unadjusted) for iden - INR 497 – 1,087 – tical assets or liabilities in active markets RUB – – – – • Level 2: Determination of fair value based on inputs other than the quoted prices of Level 1 but which are directly or indirectly observable Other 372 – 369 – • Level 3: Determination of fair value based on valuation models with inputs for the Total 11,885 (13,729) 15,124 (21,468) asset or liability that are not based on observable market data. The following tables present the Group’s assets and liabilities measured at fair value by valuation method at 31 December 2024 and at 31 December 2023: 2024 EUR 000s Level 1 Level 2 Level 3 Total Assets Assets held for sale – – – – Total assets – – – – Liabilities Non-current trading derivatives – – – – Total liabilities – – – – 2023 EUR 000s Level 1 Level 2 Level 3 Total Assets Assets held for sale 1,814 – – 1,814 Total assets 1,814 – – 1,814 Liabilities – – – – Non-current trading derivatives – – – – Total liabilities – – – – Total liabilities – – – – As of 31 December 2024, assets held for sale amount to zero. The Trondheim building in Norway, previously classified as an asset held for sale with a book value of EUR 1.8 million as of 2023, was derecognised following the sale in February 2024, reducing the asset value to zero. 72 FINANCIAL STATEMENTS Risk Management CREDIT RISK EUR 000s 2024 Expected credit loss Expected credit loss, % Credit risk arises from cash and cash equivalents, deposits with banks, as well as Not yet due 22,590 (13) 0.06% credit exposures to customers, including outstanding receivables and committed transactions and it is managed on a Group basis. A fundamental tenet of the Group’s Overdue up to 30 days 3,065 (7) 0.24% policy of managing credit risk is customer selectivity. The Group has many custom- Overdue up to 30 and 60 days 281 (4) 1.25% ers in its various geographies and therefore there is no concentration of credit. The Overdue up to 60 and 90 days 623 (8) 1.30% Group’s largest customers are prominent international companies and, while none of these represent a material percentage of total sales, outstanding receivables Overdue up to 90 and 120 days 249 (3) 1.40% from these are regularly monitored and contained within reasonable limits. Large Overdue up to 120 and 150 days 72 (61) 84.0% value sales are authorised by the Heads of the Divisions, the CFO or the CEO, and Overdue more than 150 days 1,509 (1,300) 86.1% require customers to pay a deposit or pay in advance. The Group has a credit policy which is used to manage this credit exposure. Total 28,389 (1,396) The Group requires that provisions for doubtful debts are recorded not only to cover exposure relative to specific accounts in difficulty but also for accounts EUR 000s 2023 Expected credit loss Expected credit loss, % receivables balances which are past due for periods in excess of normal trading Not yet due 24,046 (60) 0.25% terms. Overdue up to 30 days 4,634 (19) 0.42% Overdue up to 30 and 60 days 1,087 (12) 1.08% Overdue up to 60 and 90 days 943 (13) 1.38% Overdue up to 90 and 120 days 189 (3) 1.69% Overdue up to 120 and 150 days 39 (38) 97.02% Overdue more than 150 days 2,103 (2,092) 99.49% Total 33,040 (2,236) In the category “Not yet due”, EUR 0.8 million (2023: 2.9 million) are under contract assets. At 31 December, 2024 EUR 1.4 million (2023: EUR 2.2 million) have been provisioned according to the percentages of expected credit loss shown in the table. NET DEBT Cash and Short-term Long-term Lease Net Net Debt is defined as financial liabilities (excluding lease liabilities) minus cash and EUR 000’s cash equivalents debt debt liabilities position cash equivalents and current financial assets. Opening balance 1 January, 2024 15,056 – (22,000) (11,694) (18,638) EUR 000s 2024 2023 Cash flows (3,994) (128) 8,000 3,136 Cash and cash equivalents 11,597 15,056 Currency exchange differences 535 – – (760) Short-term debt (128) – Other non-cash movements – – – (3,408) Long-term debt (14,000) (22,000) Closing balance 31 December, 2024 11,597 (128) (14,000) (12,726) (15,257) Total (2,531) (6,944) Cash and Short-term Long-term Lease Net EUR 000’s cash equivalents debt debt liabilities position Note that long-term debt excludes issuance costs. See note 21. Opening balance 1 January, 2023 9,625 (4,914) (22,000) (13,040) (30,328) Cash flows 7,075 4,696 – 3,516 – Currency exchange differences (1,644) – – (1,810) – Other non-cash movements – 218 – (360) – Closing balance 31 December, 2023 15,056 – (22,000) (11,694) (18,638) 73 FINANCIAL STATEMENTS Risk Management LIQUIDITY RISK 2024 Liquidity risk is managed by the Group treasury, which ensures adequate coverage EUR 000s Less than 1 year 1 to 3 years 3 to 5 years More than 5 years of cash needs by entering into short, medium and long-term financial instruments to support operational and other funding requirements. The Board reviews and Bank overdraft (128) – – – approves the maximum long-term funding of the Group and on an on-going basis Long-term debt (713) (14,356) – – considers any related matters on at least an annual basis. Short- and medium-term Lease liabilities (3,805) (8,756) (4,621) (2,689) requirements are regularly reviewed and managed by the centralised treasury oper- ation within the parameters set by the Board. Trade payables (21,900) – – – The Group’s liquidity and funding management process includes projecting cash Other payables (12,857) – – – flows and considering the level of liquid assets in relation thereto, monitoring Bal- Total (39,403) (23,112) (4,621) (2,689) ance Sheet liquidity and maintaining a diverse range of funding sources and back-up facilities. The Board reviews Group forecasts, including cash flow forecasts, on a Cash and cash equivalents 11,597 – – – quarterly basis. The Group treasury collects cash forecasts from group companies more frequently to assess the short and medium-term Group’s requirements. Group 2023 treasury works closely with the local finance managers and divisions in order to identify and monitor relevant cash items with the goal to assure a promptly collec- EUR 000s Less than 1 year 1 to 3 years 3 to 5 years More than 5 years tion of receivables. These assessments ensure the Group responds to possible Long-term debt (2,084) (23,042) – – future cash constraints in a timely manner. Operating finance requirements of group Lease liabilities (3,142) (4,364) (3,462) (1,603) companies are managed by the Group treasury, which is also responsible for invest- ing liquid surplus assets not immediately required by operating companies. Trade payables (26,004) – – – In June 2020, Cavotec secured a EUR 40 million long-term financing by signing a Other payables (11,320) – – – five-year agreement with Credit Suisse (now part of UBS group), Banca dello Stato Total (42,550) (27,406) (3,462) (1,603) del Cantone Ticino and Privat Debt Fund SA. During 2024, it was agreed with the lenders to extend the current financing for 2 extra years, until June 2027. Cash and cash equivalents 15,056 – – – The syndicated loan facility bears interest for each interest period at a rate per annum equal to EURIBOR plus a variable margin which will be adjusted every quarter The long term debt includes the maturity analysis based on the contractual undiscounted cashflow. The interests are included using an average interest rate of 5.08%. to reflect any changes in the ratio of net debt (including lease liabilities) to consoli- dated adjusted EBITDA as determined on a rolling basis. The loans are subject to certain restrictive covenants, including, but not limited to, additional borrowing, cer- 2024 tain financial ratios, limitations on acquisitions and disposals of assets. If the finan- cial covenants are not met and their breach is not remedied within a certain period or Credit facilities the lenders do not waive the covenants, there may grounds for termination under Total credit Syndicated facility Syndicated facility the conditions of the credit facility. EUR 000s Total credit facilities facilities utilisation utilisation (loan) utilisation (guarantees) As of 31 December, 2024, the Group’s total available credit facilities, which Non-current financial liabilities 40,000 14,569 14,000 569 related to the above mentioned syndicated loan facility agreement and to other Total 40,000 14,569 14,000 569 credit facilities with local banks, amounted to EUR 40 million, of which EUR 14.57 mil- lion was utilized (2023: 26.3 million). In the EUR 14.57 million, EUR 0.13 million are related to bank overdraft and EUR 0.44 million are related to bank guarantees that 2023 are not included in the balance sheet statements; for more information please see Credit facilities note 35 of the consolidated financial statements. The table below analyses the Total credit Syndicated facility Syndicated facility Group’s financial liabilities, excluding trade payables, into relevant maturity group- EUR 000s Total credit facilities facilities utilisation utilisation (loan) utilisation (guarantees) ings based on the remaining period at the reporting date to the contractual maturity date against the cash and cash equivalent balances. Non-current financial liabilities 40,000 26,275 22,000 4,275 As of 31 December, 2024, the Group has insurance guarantees facilities for an Total 40,000 26,275 22,000 4,275 amount of EUR 7 million of which EUR 4.6 million was utilised. In the syndicated facility utilisation, EUR 14.0 million are utilized as loans and EUR 0.57 million are utilised as standby letter of credits and guarantees. The Group does not have collateral or credit enhancements that would influence its credit exposure. The maximum exposure to credit risk is the carrying amount of each clas s of financial asset. 74 FINANCIAL STATEMENTS Risk Management CAPITAL RISK MANAGEMENT EUR 000s 2024 2023 The Group and the Company’s objectives when managing capital are to safeguard Total interest bearing liabilities (26,854) (33,694) their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an opti- Cash and cash equivalents 11,597 15,056 mal capital structure that reduces the cost of capital. In order to maintain or adjust Net debt (15,257) (18,638) the capital structure, the Group may adjust the amount of dividends paid to share- Senior net debt (15,257) (18,638) holders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of its debt to equity ratio calculated by Total equity (59,862) (56,562) comparing senior Net Debt to Total equity. In monitoring the level of indebtedness, Senior net debt/equity ratio 25.5% 33.0% on-going attention is given by management to the level of net debt, leverage ratio and assets to equity ratio calculated in accordance to the Groups financing facility. Equity/asset ratio 40.4% 36.0% Leverage ratio 0.91x 1.29x The ratios at 31 December 2024 and 31 December 2023 (both including the impact of IFRS 16) were as follows: The Group has to comply to the following financial covenants: The Leverage Ratio (Net Senior Debt on the last day of that relevant period to adjusted EBITDA in respec t of that relevant period) and The Equity Ratio. The Leverage Ratio for the Group (on a consolidated basis) shall amount to a max - imum of 4.00x for the testing period ending on 31 December 2023 and 3.5x for each testing period ending thereafter, according to the Amendment Agreement dated June 2023. The Equity Ratio for the Group (on a consolidated basis) shall amount to a mini- mum of 30% for each testing period ending in 2023 and 32.5% for each testing period ending thereafter, according to the Amendment Agreement dated 9 March 2023. 75 Report of the statutory auditor to the General Meeting of Cavotec SA, Lugano Report on the audit of the consolidated financial statements Our audit approach Opinion Overview We have audited the consolidated financial statements of Cavotec SA and its subsidiaries (the Group), which comprise the statement of comprehensive income for the year ended 31 December 2024, the Overall group materiality: EUR 1.5 million balance sheet as at 31 December 2024, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy We concluded full scope audit work at 11 reporting units in 11 countries. information. specified procedures were performed on a further 6 reporting units in 6 In our opinion, the consolidated financial statements (pages 50 to 75) give a true and fair view of the consolidated financial position of the Group as at 31 December 2024 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting As key audit matter the following area of focus has been identified: Standards and comply with Swiss law. Goodwill impairment test: Ports & Maritime and Industry Basis for opinion We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISA) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions and standards are section of our report. We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, as well as the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in Materiality accordance with these requirements. The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for Misstatements may arise due to fraud or error. They are considered material if, individually or in our opinion. aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate, on the consolidated financial statements as a whole. Cavotec SA | Report of the statutory auditor to the General Meeting Goodwill impairment test: Ports & Maritime and Industry Overall materiality EUR 1.5 million Key audit matter How our audit addressed the key audit matter Benchmark applied Total revenues Refer to page 59 (Note 4 Critical accounting estimates and judgments).The goodwill described on page 59(Note 4) of the financial Rationale for the materiality We chose total revenue as the benchmark for determining impairment assessment for Ports & Maritime and statements and discussed these with the Audit benchmark applied materiality. This basis takes into account the development and Industry is considered as a key audit matter due Committee and responsible management. volatility of the business activities and is a generally accepted to the size of the goodwill balance (EUR 30.0 benchmark for materiality considerations. million as of 31 December 2024 and EUR 30.1 and we challenged management on the inclusion of million as of 31 December 2023) as well as the all appropriate assets and liabilities in the cash- considerable judgement required by Group generating units. management in making their assessment on the identified during our audit as well as any misstatements below that amount which, in our view, warranted In relation to the value in use, we performed the impairment test. The goodwill impairment test reporting for qualitative reasons. following: depends on the estimation of future cash flows. Judgement is required to determine the Audit scope assumptions relating to the future business revenue growth and gross profit margins, included in We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on results and the discount rate applied to the the five year plan used in the impairment model, with the consolidated financial statements as a whole, taking into account the structure of the Group, the forecasted cash flows. accounting processes and controls, and the industry in which the Group operates. the pipeline. The Group is primarily structured into two business units “Ports and Maritime” and “Industry”. The Group long term growth rates, by comparing them with businesses and centralised functions. In establishing the overall approach to the Group audit, we economic and industry forecasts. We also evaluated, determined the type of work to be performed by us, as the Group engagement team, by component with the support of our PwC valuation team, certain auditors from PwC network firms and by component auditors from other firms operating under our instructions. We concluded full scope audit work at 11 reporting units in 11 countries. In addition, specified model. We applied professional scepticism when reviewing financial statement disclosures and goodwill are audited by the Group engagement team. the forecasts for the market units by stress testing key assumptions, assessing the impact on the Key audit matters sensitivity analysis and understanding the degree to Key audit matters are those matters that, in our professional judgement, were of most significance in our which assumptions would need to move before audit of the consolidated financial statements of the current period. These matters were addressed in the impairment would be triggered. context of our audit of the consolidated financial statements as a whole, and in forming our opinion The procedure performed provided a sufficient basis thereon, and we do not provide a separate opinion on these matters. to conclude on the approach of goodwill impairment assessment. Cavotec SA | Report of the statutory auditor to the General Meeting Other information A further description of our responsibilities for the audit of the consolidated financial statements is located The Board of Directors is responsible for the other information. The other information comprises the http://www.expertsuisse.ch/en/audit-report. This description forms an information included in the annual report, but does not include the financial statements, the consolidated integral part of our report. Our opinion on the consolidated financial statements does not cover the other information and we do not Report on other legal and regulatory requirements express any form of assurance conclusion thereon. In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal In connection with our audit of the consolidated financial statements, our responsibility is to read the other control system that has been designed, pursuant to the instructions of the Board of Directors, for the information and, in doing so, consider whether the other information is materially inconsistent with the preparation of the consolidated financial statements. consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. We recommend that the consolidated financial statements submitted to you be approved. If, based on the work we have performed, we conclude that there is a material misstatement of this other PricewaterhouseCoopers SA information, we are required to report that fact. We have nothing to report in this regard. The Board of Directors is responsible for the preparation of consolidated financial statements, that give a true and fair view in accordance with IFRS Accounting Standards and the provisions of Swiss law, and for such internal control as the Board of Directors determines is necessary to enable the preparation of Thomas Wallmer Laura Cazzaniga consolidated financial statements that are free from material misstatement, whether due to fraud or error. Licensed audit expert Licensed audit expert Auditor in charge In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Lugano, 27 March 2025 and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. Cavotec SA | Report of the statutory auditor to the General Meeting FINANCIAL STATEMENTS Statutory Financial Statements Income statement Cavotec SA CHF Notes 2024 2023 Net proceeds of services 2,293,139 2,288,504 Staff cost (1,413,539) (233,395) Transportation expenses - (68) External services (1,823,146) (1,766,962) Travelling expenses (31,661) (42,142) General expenses (440,883) (513,378) Depreciation fixed assets (88,075) (89,848) Non-recurring income 8 9,526,258 – Operating result 8,022,093 (357,289) Finance costs – net (6,616,630) (1,717,629) Foreign exchange – net (6,221) (1,830,486) Translation differences – (3,652,038) Profit /(Loss) before taxes 1,399,242 (7,557,443) Income taxes (2,707) (11,556) Profit /(Loss) for the year 1,396,534 (7,568,999) 79 FINANCIAL STATEMENTS Statutory Financial Statements Balance Sheet Cavotec SA CHF Notes 2024 2023 CHF Notes 2024 2023 ASSETS LIABILITIES Current assets Short-term liabilities Cash and cash equivalents 28,997 140,416 Other short-term liabilities (10,240,040) (5,027,332) Other short-term receivables 2,110,143 3,171,673 (305,238) (185,930) 14,981 47,881 (9,934,802) (4,841,403) 2,095,162 3,123,792 Short-term interest-bearing liabilities 7 (120,504) – Accrued income and prepaid expenses 31,208 13,095 Accruals and deferred income (764,108) (402,684) Total current assets 2,170,348 3,325,184 Other liabilities - (183,149) Translation provision (1,287,539) – Non-current assets Total short-term liabilities (12,412,192) (5,613,165) Intangible assets 87,019 171,227 Financial assets 270,642 62,936 Long-term interest bearing liabilities 7 (26,970,771) (34,183,041) Investments in subsidiary companies 3 87,874,905 86,455,757 Unrealized exchange gain (2,334,620) (2,797,223) Total non-current assets 88,232,566 86,689,921 Other long-term liabilities - (132,878) TOTAL ASSETS 90,402,913 90,015,104 Total long-term liabilities (29,305,390) (37,113,143) Total liabilities (41,717,582) (42,726,308) Equity Share capital (74,687,221) (74,687,221) Share premium reserve (79,479,992) (79,479,992) Loss brought forward 106,878,416 99,309,417 Result for the period (1,396,534) 7,568,999 Total equity 4 (48,685,331) (47,288,797) TOTAL EQUITY AND LIABILITIES (90,402,913) (90,015,104) 80 Notes to Statutory Financial Statements NOTE 1. NOTE 3. Cavotec is a leading cleantech company that designs and delivers connection and electrification solutions to enable the decarbonisation of ports and industrial appli- 2024 2023 2024 2023 cations worldwide. Backed by 50 years of experience, our systems ensure safe, effi- Cavotec (Swiss) SA Service company Switzerland 100% 100% CHF 200,000 200,000 cient, and sustainable operations for a wide variety of customers and applications worldwide. We thrive by shaping future expectations in the areas we are active in. Cavotec MoorMaster Ltd Holding & engineering New Zealand 100% 100% NZD 196,164,928 196,164,928 Our credibility comes from our application expertise, dedication to innovation and Cavotec USA Inc Sales company USA 100% 100% USD 68,000,000 68,000,000 world class operations. Our success rests on the core values we live by: Integrity, Cavotec India Private Ltd Sales company India 0% 0% INR 46,000 46,000 Accountability, Performance and Team Work. Cavotec’s personnel represent a large number of cultures and provide customers with local support, backed by the Group’s global network of engineering expertise. Cavotec SA, the Parent company, is a lim- ited liability company incorporated and domiciled in Switzerland and listed on Nas- daq Stockholm, Sweden. The Consolidated Financial Statements are of overriding importance for the purpose of the economic and financial assessment of the Com- NOTE 4. pany. The unconsolidated Statutory Financial Statements of the Company are pre- pared in accordance with Swiss law, the Code of Obligations (SCO), and serve as The share capital as of 31 December 2024 is divided into 106,696,030 shares at a part value CHF 0.70 each. complementary information to the Consolidated Financial Statements. NOTE 2. 65,970,240 73,679,283 (89,550,220) (9,759,197) 40,340,106 Increase share capital 8,716,981 – – – – 8,716,981 Increase share reserve – – 5,800,709 – – 5,800,709 Exchange rate differences – The Company keeps its accounting records in Euro and translates them into Swiss Francs (CHF) for statutory reporting purposes. Result of the period – – – – (7,568,999) (7,568,999) The Euro Statutory Financial Statements have been translated into Swiss Francs Allocation prior year result – – – (9,759,197) 9,759,197 – as follows: 74,687,221 – 74,479,992 (99,309,417) (7,568,999) 47,288,797 Assets and liabilities closing rate 74,687,221 – 74,479,992 (99,309,417) (7,568,999) 47,288,797 Own shares and shareholders’ equity historical rate Result of the period – – – – 1,396,534 1,396,534 Income and expenses average rate Allocation prior year result – – – (7,568,999) 7,568,999 – Impairment charges spot rate 74,687,221 – 74,479,992 (106,878,416) 1,396,534 48,685,331 Translation gains are deferred and translation losses are included in the determina- The LTIP Program 2023 was cancelled. For 2024 no LTIP program was launched. The short-term incentive plan (STIP) is an annual non-equity cash compensation and is the tion of net income. cash-based element of the variable remuneration for senior executives, while the long-term incentive plan (LTIP) is aimed to create a managing shareholder culture by allowing selected key employees of the Group to become shareholders of Cavotec SA. • – Current assets and liabilities are recorded at cost Further information is in the Remuneration Report on page 36. less adjustments for impairment of value. • – Financial assets are recorded at acquisition cost less adjust- ments for impairment of value. Issued shares 106,696,030 CHF 0.70 CHF 74,687,221 • – Treasury shares are recognised at acquisition cost and deducted from shareholders’ equity at the time of acquisition. In case of resale, Contingent shares 942,430 CHF 0.70 CHF 659,701 the gain or loss is allocated or charged to equity. Authorised shares 9,424,320 CHF 0.70 CHF 6,597,024 • – Revenue from services is recorded as at invoicing. Once the service has been rendered it is invoiced, at the latest at the end of each quarter. 81 NOTE 5. NOTE 7. The end of the year and based on the available information, six main shareholders are: In June 2020, Cavotec secured a EUR 40 million long-term financing by signing a five-year agreement with Credit Suisse (now part of UBS group), Banca dello Stato % del Cantone Ticino and Privat Debt Fund SA. During 2024, it was agreed with the Bure Equity AB Financial institution 38,254,921 35.9% lenders to extend the current financing for 2 extra years, until June 2027, and portion utilised as of 31 December 2024 has been classified as long term. TomEnterprise Private AB (Thomas von Koch) Investment Fund 21,318,942 20.0% Fabio Cannavale Individual investor 7,583,008 7.1% Fjärde AP-fonden Investment Fund 5,793,710 5.4% Bank overdraft 120,504 – Nordea Fonder Investment Fund 4,685,626 4.4% Short-term interest bearing liabilities to other group companies – – Fondita Fund Management Investment Fund 2,000,000 1.9% Short-term interest bearing liabilities to Corner – – 79,636,207 74.6% Total short-term interest bearing liabilities 120,504 – % Long-term interest bearing liabilities Credit Suisse 12,801,257 20,372,000 Bure Equity AB Financial institution 37,554,921 35.3% Long-term interest bearing liabilities to TomEnterprise Private AB (Thomas von Koch) Investment Fund 18,666,109 17.5% other group companies 14,169,514 13,811,041 Fabio Cannavale Individual investor 7,583,008 7.1% 26,970,771 34,183,041 Fjärde AP-fonden Investment Fund 6,793,710 6.4% Nordea Fonder Investment Fund 4,635,626 4.4% Fondita Fund Management Investment Fund 2,000,000 1.9% 77,233,374 72.5% Less than 1 year 120,504 – 1 to 5 years 26,970,771 34,183,041 More than 5 years – – NOTE 6. Based on publicly available information, the ownership by members of the Board and Cavotec Management Team is as follow: % Patrik Tigerschiöld (Anna Kirtap AB and familly) Chairman 1,598,000 1.50% David Pagels CEO 750,000 0.70% Niklas Edling Board member 90,040 0.08% Annette Kumlien Board member 75,000 0.07% Joakim Wahlquist CMT member 75,000 0.07% Patrick Mares CMT member 18,950 0.02% Peter Nilsson Board member – – Keith Svendsen Board member – – 2,606,990 2.4% 82 NOTE 8. NOTE 10. NOTE 13. In December 2024, the intercompany loan between Cavote Group Holding (lender) Cavotec SA, as the ultimate parent company of Cavotec Group, is fully integrated The number of full-time equivalents, as well as the previous year, did not exceed 10 and Cavotec SA (borrower), which originated following the closure of the SEB cash into the Company internal risk assessment process. on an annual average basis. pool, was waived, resulting in the recognition of EUR 10 million in the non-recurring The Company-wide internal risk assessment process consists of regular report- income. ing to the Board of Directors of Cavotec SA on identified risks and management’s reaction to them. The procedures and actions to identify the risks, and where appro- priate remediate, are performed by specific corporate functions as well as by the NOTE 14. operating companies of the Group. It also adopted and deployed Group-wide the Internal Control System (“ICS”). NOTE 9. No significant subsequent events occurred. The internal control function has been embedded in the finance organisation. This task is performed by Group Finance, that together with the local entity’s finance The following table provides quantitative data regarding the Company’s third-party department and the Legal Compliance officer is responsible for ensuring that the guarantees. necessary controls are performed along with adequate monitoring. Internal controls comprise the control of the Company’s and Group’s organisa- CHF tion, procedures and remedial measures. The objective is to ensure reliable and cor- rect financial reporting, and to ensure that the Company’s and Group’s financial Advance payment bonds – 97,196 reports are prepared in accordance with law and applicable accounting standards Performance bond 24,321 689,403 and that other requirements are complied with. The internal control system is also Parent guarantee 7,661 6,360,981 intended to monitor compliance with the Company’s and Group’s policies, principles and instructions. In addition, the control system monitors security for the Company Other guarantees 111,774 – assets and monitors that the Company’s resources are exploited in a cost-effective Total 143,756 7,147,580 and adequate manner. Internal control also involves following up on the imple- Profit/(Losses) brought forward (106,878,416) mented information and business system, and risk analysis. Profit/(Losses) for the year 1,396,534 Financial risks management is described in more detail in the Risk Management Cavotec SA carries joint liability in respect of the federal tax authorities for value (105,481,882) note of the Consolidated Financial Statements. added tax liabilities of its Swiss subsidiary, furthermore Cavotec SA is a guarantor Appropriation to general statutory reserves for the existing EUR 40 million syndicated credit facility. (retained earnings) – Appropriation to other reserves – NOTE 11. (105,481,882) As of 31 December 2024, the company has granted no loans, advances, borrowings The Board of Directors’ proposal to the Annual General Meeting is that no dividend is or guarantees in favor of member of the Board of Directors and members of the to be paid for the 2024 financial year. Cavotec Management Team or parties closely related to such persons. NOTE 12. As a global company with a diverse business portfolio, the Group is exposed to numerous legal risks, particularly in the areas of product liability, competition and tax assessments. The outcome of any current or future proceedings cannot be predicted. It is therefore possible that legal or regulatory judgments or future settle- ments could give rise to expenses that are not covered, or not fully covered, by insurers’ compensation payments and could significantly affect our revenues and earnings. 83 Report of the statutory auditor to the General Meeting of Cavotec SA, Lugano Report on the audit of the financial statements Materiality The scope of our audit was influenced by our application of materiality. Our audit opinion aims to provide Opinion reasonable assurance that the financial statements are free from material misstatement. Misstatements We have audited the financial statements of Cavotec SA (the Company), which comprise the income may arise due to fraud or error. They are considered material if, individually or in aggregate, they could statement for the year ended 31 December 2024, the balance sheet as at 31 December 2024 and notes to reasonably be expected to influence the economic decisions of users taken on the basis of the financial the statutory financial statements, including a summary of significant accounting policies. statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, articles of incorporation. including the overall materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the Basis for opinion nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-CH). Our individually and in aggregate, on the financial statements as a whole. Overall materiality CHF 0.9 million Company in accordance with the provisions of Swiss law and the requirements of the Swiss audit profession, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Benchmark applied Total assets Rationale for the materiality We chose total assets as the benchmark because, in our view, it is We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for benchmark applied the relevant benchmark for a holding company that mainly holds our opinion. investments and it is a generally accepted benchmark. Our audit approach identified during our audit as well as any misstatements below that amount which, in our view, warranted Overview reporting for qualitative reasons. Overall materiality: CHF 0.9 million Audit scope We designed our audit by determining materiality and assessing the risks of material misstatement in the We tailored the scope of our audit in order to perform sufficient work to financial statements. In particular, we considered where subjective judgements were made; for example, enable us to provide an opinion on the financial statements as a whole, in respect of significant accounting estimates that involved making assumptions and considering future taking into account the structure of the Company, the accounting events that are inherently uncertain. As in all of our audits, we also addressed the risk of management processes and controls, and the industry in which the Company operates. override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. As key audit matter the following area of focus has been identified: Key audit matters Investments valuation in subsidiary companies Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Cavotec SA | Report of the statutory auditor to the General Meeting Investments valuation in subsidiary companies ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Key audit matter How our audit addressed the key audit matter Company or to cease operations, or has no realistic alternative but to do so. At 31 December 2024, the carrying value of the recoverability of investments as follows: Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are million (2023: CHF 86.5 million). • We compared the carrying amounts of the invest- ments against the underlying net assets. The principal considerations for our determination includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an • We compared the market capitalization of Cavo- that the valuation of investments in subsidiary audit conducted in accordance with Swiss law and SA-CH will always detect a material misstatement tec SA as at 31 December 2024 with the equity of companies is a key audit matter are the when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the Company. significant amount of the investments in the the aggregate, they could reasonably be expected to influence the economic decisions of users taken on balance sheet and the judgement involved in the basis of these financial statements. The procedure performed provided a sufficient the impairment assessment. basis to conclude on the approach of investments A further description of our responsibilities for the audit of the financial statements is located on valuation in subsidiary companies. http://www.expertsuisse.ch/en/audit-report. This description forms an integral part of our report. Other information The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements, the consolidated Report on other legal and regulatory requirements In accordance with article 728a para. 1 item 3 CO and PS-CH 890, we confirm the existence of an internal control system that has been designed, pursuant to the instructions of the Board of Directors, for the Our opinion on the financial statements does not cover the other information and we do not express any preparation of the financial statements. form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial financial statements submitted to you be approved. statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. PricewaterhouseCoopers SA If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. The Board of Directors is responsible for the preparation of financial statements in accordance with the Thomas Wallmer Laura Cazzaniga Board of Directors determines is necessary to enable the preparation of financial statements that are free Licensed audit expert Licensed audit expert from material misstatement, whether due to fraud or error. Auditor in charge Lugano, 27 March 2025 Cavotec SA | Report of the statutory auditor to the General Meeting OTHER INFORMATION Other Information At the end of 2024, we announced several significant orders for shore power. These orders are clear signs of the strong need to reduce emissions in marine environments, driven by increasingly stringent regulations. They also reflect our ability to deliver innovative systems that meet the evolving needs of the shipping industry. 86 OTHER INFORMATION Financial definitions Financial definitions This report includes financial measures as required by the financial reporting framework applicable to Cavotec SA, which is based on IFRS. In addition, there are other measures (alternative performance measures) used by management and other stakeholders to analyse trends and performance of the group’s operations that cannot be directly read or derived from the financial statements. Cavotec stakeholders should not consider these as substitutes, but rather as additions, to the financial reporting measures prepared in accordance with IFRS. Refer below for a list of definitions of all measures and indicators used, referred to and presented in this report. PROFITABILITY MEASURES Earnings per share, after dilution – Earnings per share is expressed as Working capital – Inventories and trade receivables less trade pay- net income attributable to equity holders of the parent company divided ables. This measure shows how much working capital is tied up in the EBIT – Used synonymously with operating result. by the weighted average number of shares outstanding (net of treasury operations and can be put in relation to sales to understand how Adjusted EBIT – Operating result excluding non-recurring items. Separate shares), after dilution. Earnings per share is a good measure of Cavotec’s efficient working capital is managed. reporting of items affecting comparability between periods provides a profitability and is used to determine the value of its outstanding shares. better understanding of Cavotec’s underlying operating activities. OTHER INDICATORS EBIT margin – Operating result as a percentage of revenue. CAPITAL INDICATORS Order backlog – Received and confirmed sales orders not yet delivered EBIT margin is a key profitability measure. Capital employed – Total equity and liabilities less non-interest-bearing and accounted for as net sales. The measure indicates the efficiency of debt including deferred tax liabilities. This measure shows the amount of the conversion of received and confirmed sales orders into net sales in EBITDA – EBITDA is a measure of earnings before interest, taxes, capital that is used in the operations and is an important component for future periods. depreciation, amortisation and impairment charges. EBITDA measures measuring the return from operations. Cavotec’s operating performance and the ability to generate cash from Order intake – Received and confirmed sales orders minus cancelled operations, without considering the capital structure of the group or its Equity/assets ratio – Equity attributable to equity holders of the Parent orders during the reporting period. The measure indicates future fiscal environment. Company as a percentage of total assets. A measure for showing revenues and is important for the management of Cavotec’s business. financial risk, expressing the percentage of total assets that is financed Adjusted EBITDA – EBITDA excluding non-recurring items. Separate by the owners. reporting of items affecting comparability between periods provides a better understanding of Cavotec’s underlying operating activities. Leverage ratio – Senior net debt divided by adjusted EBITDA. The ratio indicates Cavotec’s ability to meet its financial obligations. EBITDA margin – EBITDA as a percentage of revenue. EBITDA margin is a key profitability measure. Net debt – Net debt is defined as total interest-bearing liabilities plus dividend payable, less liquid funds and interest-bearing assets. The Non-recurring items – Any material items which represent gains or measure shows Cavotec’s indebtedness. losses arising from: restructuring of the activities of an entity and reversal of any provisions for the costs of restructuring as defined under IFRS, Net debt/equity ratio – Net debt as a percentage of total equity. Total disposal of non-current assets, disposal of assets associated with equity is shareholders’ equity including minority interests. The measure discontinued operations, extraordinary provisions and litigation. shows financial risk and is useful to monitor the level of Cavotec’s Non-recurring items are relevant when comparing earnings for one indebtedness. period with those of another. Separate reporting of items affecting Senior net debt equity ratio – Senior net debt is all interest bearing comparability between periods provides a better understanding of indebtness that is not subordinated minus liquid assets. The measure Cavotec’s underlying operating activities. shows Cavotec’s indebtedness. 87 OTHER INFORMATION The share The share in 2024 The Cavotec share is listed on Nasdaq Stockholm since 2011 in the mid-cap segment. In 2024, the share price increased 17.4% compared to the Nasdaq Stockholm index OMXS PI, which increased 5.7%. The number of known shareholders increased 13.7% to 2,296. In 2024, a total of 8.6 (14.4) million shares were traded of which 96.1% TEN LARGEST SHAREHOLDERS 31 DECEMBER 2024 (94.0%) on Nasdaq Stockholm. The daily average was 34,461 (14,433) Shareholder Shares Capital and votes shares of which 33,108 (13,660) were traded on Nasdaq Stockholm. Bure Equity 38,254,921 35.85% The share price increased 17.4% (6.7%) in 2024. Nasdaq Stockholm, Thomas von Koch 21,318,942 19.98% measured by the OMXS PI index, increased 5.7% (15.5%) in 2024. In 2024, the highest closing price SEK 22.80 was paid on 17 July Fabio Cannavale 7,583,008 7.11% and the lowest price SEK 13.65 was paid on 9 February. Fourth Swedish National Fund 5,793,710 5.43% The market capitalisation was SEK 1,803 (1,536) million on the last Nordea Funds 4,685,626 4.39% trading day of the year. Fondita Fund Management 2,000,000 1.87% Patrik Tigerschiöld and family 1,598,000 1.50% SHAREHOLDERS The number of known shareholders increased 13.7% to 2,296 (2,019). Fredrik Palmstierna 1,503,896 1.41% Most of the holdings, 77.6% (76.6%), are in Sweden, followed by SEB Investment Management 1,267,063 1.19% Switzerland with 7.1% (7.1%) and Finland with 6.3% (6.1%). Of the Eric Isaac 1,234,382 1.16% known shareholders, the largest type of shareholders is investment and Ten largest shareholders 85,239,548 79.89% private equity companies holding 35.9% (35.3%) % of the shares, while Others 21,456,482 20.11% private individuals hold 17.6% (17.8%). Bure Equity is the single largest shareholder with 35.85% (35.20%) Total 106,696,030 100.00% of the share capital and votes. All information about shareholders and trading comes from Monitor, Modular Finance. THE SHARE AND SHARE CAPITAL HOLDING DISTRIBUTION 31 DECEMBER 2024 Each share in Cavotec carries one vote and all shares have equal right to dividend. The number of shares and votes is 106,696,030 and each Holding size Capital and votes Shares Number of known shareholders Share of known shareholders share has a par value of CHF 0.70. The share capital is CHF 74,687,221. 1-500 0.18% 188,054 1,557 67.81% 501-1,000 DIVIDEND POLICY AND DIVIDEND 0.18% 189,251 233 10.15% Cavotec’s target is to distribute dividends of approximately 30-50% of 1,001-5,000 0.72% 764,906 318 13.85% net profits over a business cycle. Any pay-out decision will be based on 5,001-10,000 0.54% 571,540 74 3.22% the company’s financial position, investment needs, acquisitions and 10,001-20,000 0.40% 422,935 27 1.18% liquidity position. 20,001- 89.53% 95,520,071 87 3.79% The Board of Directors proposes to the Annual General Meeting Unknown holding size 8.47% 9,039,273 0 0.00% 2025 that no dividend be paid for the 2024 financial year. Total 100.00% 106,696,030 2,293 100.00% 88 OTHER INFORMATION The share DEVELOPMENT OF THE SHARE CAPITAL COUNTRY DISTRIBUTION, % Activity Date Shares Share capital, CHF Listing on Nasdaq Stockholm 19 October 2011 71,625,472 110,665,691 Sweden, 77.6% Reduction share capital 4 May 2012 71,625,472 109,237,747 Switzerland, 7.1% Finland, 6.3% Reduction share capital 23 April 2013 71,625,472 105,667,886 Others, 9.0% Reduction share capital 23 April 2014 71,625,472 102,098,025 Increase share capital 19 September 2014 78,764,272 112,306,480 Reduction share capital 22 April 2015 78,764,272 108,379,680 Reduction share capital 22 April 2016 78,764,272 106,023,600 Reduction share capital 29 March 2017 78,764,272 102,096,800 Rights issue 4 January 2019 94,471,472 120,631,296 OWNER TYPE DISTRIBUTION, % Reduction share capital 2 June 2022 94,471,472 65,970,240 New issue 22 February 2023 106,696,030 74,687,221 Investment and private equity, 35.9% Total outstanding shares 31 December 2024 106,696,030 74,687,221 Private individuals, 17.6% Fund companies, 8.6% Others, 37.9% SHARE PRICE DEVELOPMENT AND VOLUME ON NASDAQ STOCKHOLM 2024 SEK NO OF SHARES 25 400,000 20 320,000 ANALYST Cavotec is followed by the analyst listed below. Publicly available analyst reports on Cavotec are available 15 240,000 on www. introduce.se/foretag/cavotec/start/. For further information, please contact the analyst below. 10 160,000 FIRM ABG Sundal Collier (sponsored research) Analyst Lara Mohtadi [email protected] 5 80,000 Phone: +46 8 566 286 00 THE CAVOTEC SHARE 0 0 2024-01-012024-02-012024-03-012024-04-012024-05-012024-06-012024-07-012024-08-012024-09-012024-10-012024-11-012024-12-012024-12-30 ISIN: CH0136071542 Ticker: CCC Volume CCC OMXSPI (norm vs CCC) 89 CCC Volume CCC OTHER INFORMATION Shareholder information Shareholder information FINANCIAL CALENDAR 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 Report 2025 Week that begins 30 March 2026 IR CONTACT Joakim Wahlquist, CFO Phone +41 91 911 4010 Email [email protected] 2025 ANNUAL GENERAL MEETING The Annual General Meeting 2025 will take place on 3 June 2025 in Lugano, Switzerland. FINANCIAL INFORMATION Cavotec’s annual report and quarterly reports are published in English. They are available for download at https://ir.cavotec.com/financial-reports Cavotec SA Corso Elvezia 16 CH-6900 Lugano Switzerland +41 91 911 4010 [email protected] cavotec.com 90 OTHER INFORMATION Cavotec’s history in brief Cavotec’s history in brief Lars at work El-Fack exhibition Cavotec manage- Cavotec sales engineers at a in a Swedish in Göteborg, ment outside Micro-control training session mine 1976. Sweden 1977. Specimas Ltd 1989. in Stjördal, Norway 2002. 1974 1976 1984 1997 1999 2002 • Specimas AB registered • Specimas AB is renamed • Cavotec acquires • Acquisition of Alfo Apparatebau • Acquisition of Metool in • Acquisition of Gantrex in Sweden as sales agent Cavotec AB. Specimas SpA. in Germany. Australia and RMS Group in Canada, South for Italian Specimas SpA. • Starts a sales company in Enrouleurs in France. Africa and the US. Singapore. • Starts a sales company in Denmark. Head office moves Cavotec’s Board at to Switzerland. Cavotec Specimas in March 2005. 2017 2011 2008 2007 2004 • Cavotec confirms its leadership in • Sales offices opened in Spain and Brazil. • Acquisition of Dabico Group in the • Merger with the British company • Acquisition of Fladung in Germany automated mooring and charging • Acquisition of INET Group in the US. US and UK, Meyerinck in Germany Mooring Systems. and Micro-control in Norway. for electric ferries with the first • Listing on Nasdaq Stockholm. and Gantrex operations. • Listing on New Zealand Stock Exchange. connection of a battery powered • Head office moves to Switzerland. vessel in Finland. 2018 2020 2021 2022 2023 2024 • Opening of new production • Launch of MoorMaster NxG, • New strategy launched to • Divestment of the • Focus on the transformation • Solid financial improvements and facility in Milan, Italy. the next generation focus on cleantech for ports airport division. of Cavotec to build a stronger strong order intake. • Launch of services offering. automated vacuum mooring. and industrial applications. company and grow profitably. 91
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