Year-end report 2022

SUMMARY JANUARY-DECEMBER 2022

• Net sales amounted to MSEK 1,390.5 (1,295.8).
• Net sales increased 7% (25).
• EBIT amounted to MSEK 152.8 (207.2).
• EBIT margin amounted to 11.0% (16.0).
• Net income was MSEK 120.5 (166.7).
• Earnings per share amounted to SEK 2.41 (3.33).
• The Board proposes a dividend of SEK 0.80 per share (1.40).

CEO PATRIK ANDERSSON: FOCUS ON FUTURE GROWTH AND PROFTITABILITY DESPITE A CHALLENGING QARTER.
Group net sales amounted to MSEK 342 in the fourth quarter, which is 8% lower than the year-earlier quarter. As with previous quarters of the year, GARO Electrification continued to report favorable growth, while sales declined for GARO E-mobility. Our production and delivery capacity in the business area was primarily impacted by a shortage of electronic components.

GARO E-MOBILITY
Net sales in the GARO E-mobility business area amounted to MSEK 81 (134) during the quarter. Compared with the year-earlier quarter, the market has increasingly transitioned to connectable products, even for home use. This has resulted in a decline in GARO’s sales of certain non-connectable home chargers. The lower sales are also a result of the challenging situation with limited supplies of electronic components, which has led to long delivery times to customers. The order book remains large, particularly in connectable systems for public charging, where the expansion of charging infrastructure is continuing. During the quarter, we launched a new product program for destination charging1 . The range is based on a new technical platform with a high degree of functionality for home use, commercial properties and public environments. Interest from the market has been considerable and we have begun to take orders of GARO Entity, a newly developed charger designed for public environments. We are gradually increasing production and expect to reach full capacity by the summer. As a natural step for our continued growth within GARO E-mobility, we have started to establish operations in the German market, which we have previously reached through retailers but where we would now like to see a higher market footprint.

GARO ELECTRIFICATION
Net sales in the GARO Electrification business area increased 11% to MSEK 261. We noted healthy growth in a number of markets and, in particular, in the Electrical distribution products and Project business product areas. The new construction and renovation sector remained generally strong during the quarter. In addition, the increased focus from households on energy efficiency and metering has driven sales in the Electrical distribution products product area. Temporary Power declined somewhat year-on-year. During the quarter, Daniel Emilsson was appointed as new Business Area Manager. Since 2007, Daniel has successfully led GARO’s product development team as GARO’s CTO and has the necessary background to continue to develop the business area.

MATERIALS SUPPLY
In the GARO Electrification business area, deliveries have remained on a healthy level in the fourth quarter. On the other hand, the lack of electronic components in the GARO E-mobility business area has significantly impacted our production and delivery capacity of connectable charger products. This will also impact the Group’s operations in the beginning of 2023.

MARKET CONDITIONS
The market for charging infrastructure is growing structurally with rising numbers of rechargeable vehicles, and we see a continuing strong trend with further expansion of the charging infrastructure in the European market. Housing construction remains at a favorable rate of production, but new production is expected to gradually slow during the second half of 2023. On the other hand, demand for other commercial and public construction, combined with renovation requirements, energy efficiency and electrification, is expected to remain favorable, which is positive for GARO. All in all, we have a positive view of long-term market conditions, mainly driven by growth in charging infrastructure.

Patrik Andersson
President and CEO

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