CONTINUED EXPANSION, ENHANCED OFFERING AND INCREASED TURNOVER

Business Area Volito Industry has continued its expansion, strengthened its position as a system integrator in automation, electrification and digitalisation, and considerably increased its turnover. With a solid foundation, Volito Industry is well prepared for an uncertain business climate, while retaining its focus on profitable growth and transformation.

The year was characterised by high order inflow, strong sales and very good financial results, but also challenges in the form of continued supply disruptions, major geopolitical concerns after Russia’s invasion of Ukraine, rising inflation and increased costs relating to energy, intermediate goods and interest rates. With a solid platform, efficient operations and an ability to rapidly adapt to new conditions, we have managed the challenges well, in close dialogue with suppliers and customers.

In recent years, two trends have proved to be particularly relevant to us. In order to secure future deliveries, more and more manufacturers are reviewing their supply chains. In parallel, there has been accelerated development in digitalisation and an increasing realisation in industry of the benefits of connected functions and a consequent rise in related demand. Overall, these trends constitute a transition, which in our markets means an increased need for automation, electrification and connectivity. We have purposefully shaped our business to offer our customers complete and long-term sustainable solutions that meet these needs, and our aim is to continue our expansion in electrification and the IoT. Our transformation and our acquisitions are very timely.

New acquisitions

All the business area’s operations are organised under Volito Automation. Acquired during the year were Mobile Integrator AB, based in Halmstad and with a sales office in Bröndby, Denmark, and Peimarin Hydrauliikka Oy, which is based in Pikis, just east of Åbo.

Mobile Integrator specialises in monitoring and control systems in mobile electronics as well as connected functions and services. The company provides an extensive range of products and services designed for the mobile market. Mobile Integrator therefore constitutes a strategic strengthening of Volito Automation’s OEM offering, through which we have created one of the most competitive businesses in the Nordic region in hydraulics, pneumatics and electric operation with considerable expertise in integrated system solutions.

Peimarin Hydrauliikka offers service, preventive maintenance and production optimisation in hydraulics and pneumatics, and is now a natural part of Volito Automation’s aftermarket business in the Nordic region, where we will focus on being a guarantor for customers’ long-term functionality and continuous operation. Peimarin Hydrauliikka strengthens our offering in terms of geographical coverage and expertise.

Strong sales

Despite major challenges, we can once again report an increase in order inflow and strong sales. Challenges in the supply chains have been well managed and close communication with customers and suppliers, as well as a carefully balanced increase in stocks, have been crucial for maintaining deliveries.

Financial results

Compared with the previous year, turnover increased by 48%, and now exceeds SEK 700 million. EBITDA in 2022 amounted to SEK 76.0 million (35.0), which represents an increase of 117%.

Ready for continued expansion and diversification

Going forward, we expect continued cost increases relating to intermediate goods, interest rates and energy, as well as subdued GNP growth, reduced new investments and possible cutbacks in industry.

Our business area is well diversified, with a balanced customer and product portfolio in terms of geographical coverage, orientations and sectors, which is something we will continue to develop. We are well prepared to face a poorer business climate, but also ready to take advantage of future opportunities. Among other things, we are looking forward to the opening of HydSupply’s new facility in Värnamo in spring 2023. The facility will give us greater proximity to our customers, situate us in a more commercial hub and lay the foundation for continued growth.

With a strong and profitable platform and the trust of our customers and owners, we are aiming for continued long-term sustainable expansion and transformation through add-on acquisitions and the acquisition of new operations, focusing on well-established and knowledge-intensive companies. We will continue to strengthen our position in the market through sustainable solutions in automation, particularly in electrification and digitalisation.

I would like to extend a special thank you to customers, partners and staff members. Despite major challenges, our performance in 2022 was above all expectations. I look forward with great confidence to taking the next step together in our continuing development.