the trajectory of our business

3.2.2.1. NORS MOBILITY

In Portugal, 2022 once again represented a year conditioned by a context of unpredictability generated by the global macroeconomic environment. For these reasons, multiple production constraints were maintained for the brands represented, with direct implications for the business activity of Auto Sueco Portugal, Galius and Auto Sueco Automóveis.

In a scenario in which the high-end truck market fell 5.3%, the companies from Portugal represented a combined market share of 34.5% - translating into 1,204 registrations (compared to 1,020 in 2021), in a total market of 3,488 trucks.

In Brazil, 2022 looked highly challenging. After an increase, in 2021, in the São Paulo and Centro Oeste markets, which translated into the largest combined market since Nors entered Brazil, it was expected that activity could slow down

- a situation that did not occur, with this geography once again exceeding growth expectations, both in terms of turnover and EBITDA.

In Angola, the economy evolved positively (+2.9% of GDP), reinforcing the feeling of a reversal of the recessionary cycle that the Angolan economy had presented since 2015. In direct relation to the levels of public and private investment in this geography, the high-end truck market grew 125.7%. Auto Sueco Angola and KinLai have thus absorbed the improved economic conditions, presenting a combined market share in the official high-end truck market of 74.7%.

In line with the excellent sales volume performance (+76.6%), EBITDA grew 303.3% - demonstrating a significant improvement in the profitability of these companies.

In Namibia, Botswana and Mozambique, 2022 reinforced the already very positive evolution seen in 2021, with considerable growth in sales volume in all these countries. All three markets showed positive EBITDA growth, particularly Auto Sueco Botswana (63.9%) and Auto Sueco Mozambique (141.4%). Auto Sueco Namíbia maintained its consistency, once again presenting EBITDA growth of over 1.0 million Euros.

Auto Sueco Portugal

Auto Sueco Portugal is the exclusive distributor of Volvo trucks and buses and Volvo Penta marine and industrial engines for Portugal. The company is also the exclusive distributor of Kohler-SDMO generator sets for this market.

The year 2022 was a historic year for Auto Sueco Portugal in terms of market share in high-end trucks, reaching 21.4% and leading the market, with 748 units registered (+43.3% than the previous year), even with the market showing a slight retraction (-5.3%). This effect allowed the company to leverage sales, with an increase of 47.7% compared to 2021.

With regard to EBITDA, Auto Sueco Portugal grew 40.2%, a positive evolution based not only on the judicious management of expenses, but also on the improvement of profitability, with growth in the percentage margin in the commercial area and in the after-sales segment.

The year 2022 consolidated the results of the projects implemented in previous years, in terms of customer segmentation and definition of the commercial follow-up model, which leveraged relationships of trust and proximity with its customers. On the other hand, 2022 was also a year of great focus on the Core project, which aims to prepare the business for more modern and convergent relationship models with the various stakeholders that make up the operation.

Auto Sueco Portugal Volvo Trucks

Medium Range Trucks

heavy-duty trucks

2020

2021

2022

Auto Sueco Angola

Auto Sueco Angola is the official distributor of Volvo trucks, buses and cars in Angola, and is also the representative for Kohler-SDMO generator sets in this country. Taking into account the aforementioned Angolan market context and as shown by the analysis of the indicators, the company's overall results were positive.

The official market for high-end trucks (+ 16 tonnes) more than doubled compared to the previous year (+125.7%), rising from 140 vehicles in 2021 to 316 in 2022. A large part of this increase was captured by Auto Sueco Angola, which was able to achieve ample growth in market share, 54.1% in 2022 compared to 27.9% in 2021, clearly standing out as the market leader.

In this sense, driven by strong commercial activity and also by the growth in after-sales activity, Auto Sueco Angola's sales increased 63.3%. Absolute EBITDA grew 7.8 million Euros, representing a percentage increase of 267.7%.

high-end trucks

Auto Sueco Botswana, Auto Sueco Namíbia and Auto Sueco Moçambique

Auto Sueco Botswana is the exclusive representative for Volvo trucks and buses and Renault Trucks trucks in this territory. Auto Sueco Namibia is the exclusive representative for Volvo trucks and buses and Renault Trucks and UD Trucks trucks. In turn, Auto Sueco Moçambique operates in the distribution of Volvo trucks and buses, as well as VCE and SDLG construction equipment. In these markets, the companies also distribute Vesper Energy Solutions own-brand generator sets. In 2022, there was an across-the-board increase in market share in all three operations, even though there was a retraction in the number of units in all markets. Auto Sueco Botswana presented an increase in market share to 37.8% in 2022 against 19.6% in 2021 and, in Namibia, the increase in market share was 6.5 p.p. (31.8% in 2022, against 25.3% in 2021). Auto Sueco Moçambique showed a growth in market share in the official market for the high-end range of trucks (over 16 tonnes), reaching 81.2% in 2022 against 66.7% in 2021.

Auto Sueco Botswana saw its market contract by about 3.9%, but practically doubled its market share and the number of units registered, with 102 units in 2022 versus 55 units in 2021. In this sense, it recorded sales growth of 72.3%, supported mainly by growth in commercial activity, a segment in which it performed excellently. In this context, the structure remained frugal, which caused EBITDA to evolve positively by 63.9%.

In parallel, Auto Sueco Namíbia was penalised by the 22.0% drop in the market and, even though it remained in second position in the high-end truck market, it managed to substantially increase its market share in the Volvo brand, which translated into a number of units registered in line with the previous year (112 units in 2022 vs. 114 units in 2021). Thus, it was possible to register a sales growth of 19.1% and an EBITDA growth of 12.4%.

In turn, Auto Sueco Moçambique substantially strengthened the position of the Volvo brand, maintaining the dominant market position in a scenario of contraction (-11.5%) of the official market for high-end trucks (+ 16 tons) compared to 2021, almost completely dominating the Mozambican market, with a share of 81.2%. The joint effect of the market contraction and the increase in market share resulted in an increase in units registered (69 units in 2022 vs. 64 units in 2021). Thus, sales grew 19.4% and EBITDA grew 1.4 times.

Auto Sueco Centro Oeste and Auto Sueco São Paulo

Auto Sueco São Paulo and Auto Sueco Centro Oeste are Volvo truck and bus dealers in Brazil, respectively in the state of São Paulo and in the states of Mato Grosso, Rondônia and Acre (Centro Oeste).

After 2021, a year in which the combined market of ASSP and ASCO was the largest since Nors began its presence in the Brazilian market, in 2022 the high-end truck market in the states in which the two companies operate retracted -10.1% and -6.4%, respectively, reaching 8,339 units registered in São Paulo and 3,495 in Centro Oeste. However, from 2021 to 2022, Auto Sueco São Paulo increased its high-end market share from 21.1% to 23.0% and its mid-range share from 10.1% to 14.5%. At the same time, Auto Sueco Centro Oeste increased its share of the high-end market from 27.7% in 2021 to 32.9% in 2022. In turn, the medium range market grew 11.3% and Auto Sueco Centro Oeste managed to capture another 0.7 p.p. of share, rising from 13.8% to 14.5%. With the increases in market share, both operations managed to increase the number of units delivered to clients in 2022, compared to 2021.

This operational improvement allows the companies to show a growth in EBITDA, with Auto Sueco São Paulo growing 89.4% and Auto Sueco Centro Oeste 70.5%, translating into an increase in the combined contribution to Nors' EBITDA of 23.1 million Euros.

Auto Sueco São Paulo Volvo

heavy-duty trucks