Ependion AB is an expansive global technology group delivering digital solutions for secure control, management, visualization and data communication for industrial applications in environments where reliability and high quality are critical factors. The Group’s customers include some of the world’s leading companies. Ependion consists of independent business entities with sales of some SEK 2.5 billion in 2023 and more than a thousand employees. The company is listed on Nasdaq Stockholm Main Market’s Mid Cap-list under the ticker EPEN . ependion.com
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President and CEO
We have balanced continued offensive investments in line with our growth strategies with short-term measures to mitigate the impact of the downturn on our results.
At the same time as the Group focuses on cost savings, we continue with important forward-looking investments such as the establishment in India and investments in new technology.
This is our first major order in India following our decision to establish a legal entity in the country and we are well prepared to serve the fast-growing rail and trackside segments in India. We are also delighted to partner with Siemens Mobility.
Westermo is the global market leader in communication on board trains. With this strategic investment and partnership, we are strengthening our position in the connected trains market by gaining access to ground-breaking new technology for train-to-ground communication. We see great potential for mmWave technology in the rail sector.
With an EBIT margin of 12.4%, the Group succeeded better in mitigating the negative effects on the bottom line than during the fourth quarter last year.
With the fourth quarter behind us, we can summarize a new record year for the group in terms of sales, earnings and cash flow.
Ependion increased its EBIT for the third quarter in a row to a record level of 89 MSEK.
This win is a confirmation of our strong position in the energy sector for large-scale remote access equipment deployments where quality and reliability capabilities are so essential. The deep technical expertise and support capabilities of our team in Dublin are a great foundation for winning partnerships with large customers.
For Ependion, the quarter meant new records for order intake, revenue and profit.
This strategic contract further solidifies Westermo's position as a market leader in providing cutting-edge onboard network solutions. Westermo's extensive portfolio of rail-certified solutions for both critical and non-critical onboard systems, combined with their technical expertise and a collaborative approach, paved the way for this deal.
EBIT was tripled to 85 MSEK for the period with the operating margin at a record high 13.7 percent. It is a step towards reaching the financial profitability goal.
The Group has developed positively in recent years, with strong development of our business but also changes in the organization. The name change gives us the opportunity to update the story of what we do, what we stand for and how we create value.
We are pleased to announce this strategic acquisition of Smart HMI and their technical platform WebIQ. We have cooperated with the company for some time already and the addition of this technology to our offering represents a significant growth potential for Beijer Electronics going forward.
I am very happy to welcome Lena Westerholm to Beijer Electronics Group. Lena brings with her a very deep and broad experience from driving sustainability issues in an industrial context and will contribute to raising our focus and our competence in the area”, says Jenny Sjödahl, President and CEO of Beijer Electronics Group.
Both business entities entered 2023 strengthened, with a significantly larger order backlog.
This contract from Stadler is a testament to the growing partnership between the two companies and Westermo’s ability to provide advanced networking solutions to meet the increasing demands of onboard rail applications.
We operate in markets and in segments with strong underlying growth and have shown that we have the ability to grow faster than the market. The goals will be achieved through a clear segment strategy, continued development of competitive products and continuous efficiency improvements.
We operate in markets with strong underlying growth and demand for our products is increasing. Therefore, we choose to establish a complementary production unit in Malmö that will primarily serve our European customers and contribute to increased redundancy. In the long run, the establishment will also contribute to reduced climate footprint and lower transport costs.
I am proud and happy that both business entities show good profitability in the period.
I’m delighted that the Beijer Electronics business entity’s positive progress is continuing, with a significant profitability improvement in the quarter.
Generally positive market conditions, a record orderbook and progress in the supply of critical components are encouraging more optimism for the full-year 2022.
Westermo’s stable business model and good earnings capacity are sustaining, and we think that our delivery capacity will be able to improve in the second half-year.
Group sales increased to 533 MSEK, which means we passed half a billion kronor of sales in a single quarter for the first time.
Our view for the full year 2021 has accentuated. BEIJER GROUP has good potential to achieve significantly better financial performance in 2021 than in 2020.
Passing order intake of 500 MSEK in a single quarter for the first time is a sign of strength.
Order intake of nearly 420 MSEK is one of the Group's best quarters to date, driven by the Beijer Electronics business entity's excellent progress.
I am pleased that we today announce this third complementary acquisition to the business entity Westermo. BEIJER GROUP provides advanced technology for the rapidly growing digitalisation market in an increasingly connected world and this acquisition of ELTEC reinforces our position further.
Order intake increased by 28% in the fourth quarter compared to the third.
We’re coming out of Q3 with an unchanged healthy financial position.
I’m especially satisfied with us being able to report positive cash flow despite lower earnings, and reduce net debt in the period.
Westermo became our largest business entity in the quarter, and the acquisition of Virtual Access paves the way for profitable growth.
I am pleased that we today announce this second complementary acquisition to the business entity Westermo. We operate in markets where digitalisation is growing rapidly in an increasingly connected world and this acquisition of Virtual Access strengthens our position further.
After somewhat lower earnings in Q2, it feels positive to report a strong third quarter.
Earnings are continuing to increase. We’re converging on our target of a 10% EBIT margin.
Order intake of over 450 MSEK for the quarter is a really good level.
After eight quarters of better order intake than sales, we have a strong order book.
The Beijer Electronics business entity is providing a significant part of the Group’s recovery, which I’m delighted about, considering the major restructuring it has undergone.
We have significantly regenerated our product range, which has already had a positive impact on sales. We’re confident of continued positive progress ahead.
We’re not satisfied with our earnings, but are heading in the right direction after our major realignment.
We appreciate the support and trust our shareholders have shown in the Board and Management in their continued work on developing the Group.
We have now staked out our path for the coming years and secured room to maneuver for our ongoing development initiatives.
The continued strong order intake was pleasing. Westermo's excellent results were complemented by growth in the other business units.
The realignment we have commenced, with organizational changes, cost reductions and a higher product development tempo, is being executed professionally. We will be going into 2017 with good potential to increase sales.
Beijer Electronics recovered in the second quarter and we are heading in the right direction. We’re moving from the red into the black.
My first six months as CEO of Beijer Electronics have clearly shown the competencies and professionalism of our people in the IAS and IDC business areas. Capitalizing on our employees’ expertise and potential will be a critical factor in the forthcoming change process and is the key to our success.
The group allocates significant resources to in-house development of high-tech solutions that are sold globally, with more than 80% of group sales derived from such products in 2014.
Focus during the year has been on our global sales efforts. We have opened two new sales offices in Asia, in Malaysia and Korea, and hired a total of 20 new salespeople worldwide. By being present in different parts of the world, we reduce our sensitivity to economic fluctuations and create conditions for one of our key competitive advantages – closeness to our customers.
Building automation is a segment we’re prioritizing, and this order is a strategic milestone. The targeted effort has, in addition to the delivery to the National Library, also resulted in prestigious orders for Sweden's new national stadium Friends Arena, the Vasa Museum and the National Museum.
In our sector, future-focused and customer-oriented product development is an absolute necessity for success on the market. In 2011, we invested more funds than ever before in our development operation, and we got a very good pay-off in the form of world-leading products and solutions.
For the full year, Beijer Electronics was able to post its highest sales to date and record profits. Sales increased by 15% to over SEK 1.4 billion, and operating profit increased by over 20% to 150 MSEK. Our acquisitions, QSI of the US and Korenix of Taiwan, have been successful, exceeding expectations. They both made significant contributions to growth and profits. Simultaneously, we retained good cost control, which has had its effect on profits
