Cavotec : 4Q20 Report

Q4 2020 | Interim report January-December 2020

Resilient profitability and record cashflow despite lower revenue

OCTOBER - DECEMBER 2020

• • Revenue decreased -15.7% to EUR 40.3 million (47.8). Ports & Maritime decreased -20.8% and Airports & Industry decreased -11.3%

• • EBIT excluding non-recurring items decreased to EUR 1.0 million (5.6), corresponding to a margin of 2.5% (11.8%)

• • Non-recurring items include investment expenditure related to future growth for EUR 1.9 million.

• • Net result for the period was EUR -4.7 million (1.8)

• • Earnings per share basic and diluted amounted to EUR -0.050 (0.019)

• • Operating cash flow amounted to EUR 9.6 million (9.0)

• • Net debt amounted to EUR 15.3 million (Q3 2020: 19.0)

• • Order backlog decreased -7.2% compared to the previous quarter to EUR 85.0 million

JANUARY-DECEMBER 2020

• • Revenue decreased -19.2% to EUR 158.4 million (196.0)

• • EBIT excluding non-recurring items decreased to EUR 5.4

  million (15.7), corresponding to a margin of 3.4% (8.0%)

• • Non-recurring items include investment expenditure related to future growth for EUR 1.9 million.

• • Net result for the period was EUR -4.0 million (7.5)

• • Earnings per share basic and diluted amounted to EUR

  -0.042 (0.080)

• • Operating cash flow amounted to EUR 15.7 million (13.8)

• • Leverage ratio stable at 0.98x (0.98x)

Unless otherwise stated, figures in brackets refer to the same period in the preceding year.

Key events during the quarter

• • Cavotec to open a new innovation center focusing on profitable sustainability solutions for maritime customers

• • Cavotec's port E-truck charging won the American Association of Port Authorities 2020 Facilities Engineering Award

• • Cavotec launched next generation MoorMaster™ (NxG)

• • Cavotec receives first order for MoorMaster™ NxG from ASKO Norway for world's first fully autonomous, zero-emission ships

• • Cavotec receives follow-up order from ASKO for fully Automated Shore Power solution

• • Cavotec secured second order for MoorMaster™ NxG from SeaRoad of Australia to expand port capacity

• • Cavotec wins additional MoorMaster™ order from Napier Port to expand port capacity

• • Cavotec wins gate refurbishment orders for two airports in the US

Key events after the quarter

• • Cavotec secures Shore Power order for new Mediterranean cruise terminal

• • Cavotec secures long term services contract for a large MoorMaster™ system at an iron ore port

• • Cavotec secures long term services contract for several MoorMaster™ systems at a container terminal

FINANCIAL SUMMARY

EUR 000's

Revenue

EBITDA excluding non - recurring items

Quarter

Q420

EBITDA excluding non - recurring items %EBITDA

EBITDA margin, %

EBIT excluding non - recurring items EBIT excluding non - recurring items % EBIT

EBIT margin, %

Net profit/(loss) for the period

Basic and diluted earnings per share, EUROperating cash flow

Net debt Equity/assets ratio Leverage ratio

Full time equivalent employees

Order backlog

40,250	47,773 -15.7%	158,437
4,218	8,072 -47.7%	15,377
10.5%	16.9% -6.4 pp	9.7%
2,365	7,746 -69.5%	13,524
5.9%	16.2% -10.3 pp	8.5%
999	5,632 -82.3%	5,359
2.5%	11.8% -9.3 pp	3.4%
(854)	5,306 -116.1%	3,506
-2.1%	11.1% -13.2 pp	2.2%
(4,717)	1,795 -362.8%	(3,992)
(0.050)	0.019 -363.2%	(0.042)
9,644	8,988 7.3%	15,708
(15,264)	(24,113) -36.7%	(15,264)
52.8%	51.4% 1.4 pp	52.8%
0.98x	0.98x -0.0x	0.98x
747	769 -22	747
84,956	100,030 -15.1%	84,956

YTD

Q419

DeltaFY20

FY19

Delta

196,017 -19.2%

24,840 -38.1%

12.7% 21,465 11.0% 15.688 8.0% 12,312 6.3%

-3.0 pp

-37.0%

-2.5 pp

-65.8%

-4.6 pp

-71.5%

-4.1 pp

7,514 -153.1%

0.080 -152.5%

13,774 (24,113)

51.4%

14.0% -36.7% 1.4 pp

0.98x -0.0x

769 -22

100,030 -15.1%

Comment from the CEO

Optimism in the face of adversity

The second wave of Covid-19 in the fourth quarter and partial lock downs continued to delay decision making and projects in our markets. Despite this revenue and EBIT improved slightly versus the third quarter 2020, while the operating cash flow was considerably stronger.

The measures we implemented early on in the year to control our costs has continued to help us mitigate the most severe effects and remain profitable during the pandemic despite lower revenue levels.

Compared with the same period 2019 revenues decreased 15.7% to EUR 40.3 million (47.8) and adjusted EBIT decreased to EUR 1.0 million (5.6), corresponding to a margin of 2.5%.

The operating cash flow amounted to EUR 9.6 million (9.0), a great achievement in the midst of a global pandemic.

The order backlog decreased 7.2% compared to the previous quarter to EUR 85.0 million. The general uncertainty impacted customer decision making, with delays to orders and approval of new investments taking longer than normal.

Despite the depressed business climate at the end of the year, we continue to be optimistic about the future. We remain more committed than ever to developing solutions that contribute to improvements in efficiency and productivity while at the same time reducing environmental impact. We actually see the pandemic making key trends of efficiency, safety and sustainability, that our solutions address, more relevant than ever.

Underpinning our optimism are some of the orders we won in the quarter that reinforces our leading position in the growing market for profitable sustainability solutions for the maritime sector.

We won automated mooring and automated e-charging systems for the world's first fleet of zero-emission, autonomous, battery powered ships in Norway.

We were further encouraged by receiving two orders in quick succession for our next generation mooring system,

MoorMaster™ NxG soon after the global launch in October. This is a testament to how MoorMaster™ can revolutionise the way ships enter and leave ports, mooring in as little as 30 seconds to drastically reduce docking times. This leads to increased loading/offloading productivity in the port where, from an environmental perspective, it results in an hour less of heavy diesel emissions for every ship, every mooring sequence and a greener, cleaner world.

Our optimistic view of the future also meant that we, despite the headwinds, increased our investments in developing our technology and products.

In October we announced that we will open a new innovation center in the Netherlands at the beginning of 2021 focusing on profitable sustainability solutions for the maritime sector. This will allow us to bring together our capabilities within areas such as artificial intelligence, remote connectivity, high power, high speed electrical charging and battery technology.

Although we have seen market challenges affecting revenue in the short term, we will continue to invest in our market position to be prepared for the expected recovery and growth in our markets. We are well positioned to fully leverage on the expected increase in demand as soon as the world returns to a more normal situation.

Lugano, 26 February 2021

Mikael Norin Chief Executive Officer

ORDER BACKLOG AND REVENUE

EUR 000s

Revenue from sales of goods and services Increase/(decrease)

Percentage change

Of which

- Volumes and prices

- Currency effects

Q420	Q419	FY20
40,250	47,773	158,437
(7,523)	(1,043)	(37,580)
-15.7%	-2.1%	-19.2%
-14.1%	-2.3%	-17.1%
-1.6%	0.1%	-2.1%

Revenue

DIVISIONS

EUR 000s

Ports & Maritime Airports & Industry

Total

Q420	Q419 Change %	FY20
17,762	22,433 -20.8%	68,893
22,488	25,340 -11.3%	89,544
40,250	47,773 -15.7%	158,437

EUR 000s

Ports & Maritime Airports & Industry Total

FY20 44,336 40,620 84,956

Revenue

Order Backlog

FY19 59,953 40,077 100,030

Change % -26.0% 1.4% -15.1%

9M20

FY19 196,017

(944)

-0.5%

-1.3% 0.8%

FY19

84,588 -18.6%

111,429 -19.6%

196,017 -19.2%Change %

45,936 -3.5%

45,650 -11.0%

Change %

91,586 -7.2%

MoorMaster® NxG

Financial Review

OCTOBER-DECEMBER 2020

Revenue decreased 15.7% in the fourth quarter compared to previous year to EUR 40.3 million (47.8), mainly as a result of delayed projects related to the second wave of Covid-19 and lockdowns in some markets. Both segments were affected by the situation. Service revenue compared to total revenue increased to 21.7% in the fourth quarter.

Ports & Maritime

Ports & Maritime´s revenue decreased 20.8% compared to previous year to EUR 17.8 million (22.4), due to continued impact from the pandemic.

The order backlog decreased 3.5% compared to the end of the previous quarter and 26.0% compared to the same period in 2019 to EUR 44.3 million (60.0). In the period Cavotec won important orders worth EUR 6.5 million for automated mooring in Australia and New Zealand, and automated mooring and automated Shore Power for the world's first fleet of zero-emission, autonomous battery powered ships in Norway.

Airports & Industry

Airports & Industry´s revenue decreased 11.3% compared to the same period previous year to EUR 22.5 million (25.3), due to continued impact from the pandemic. In Industry the decrease was due mainly to lower volumes from our traditional OEM customers.

The order backlog decreased 11.0% compared to the end of the previous quarter and increased 1.4% compared to the same period in 2019 to EUR 40.6 million (40.1). Main orders were won in the US for gate refurbishments at two airports.

EBIT

EBIT decreased to EUR -0.9 million (5.3), corresponding to a margin of -2.1% (11.1%). The decrease is mainly due to the negative volume impact, partially offset by lower employee costs, consultancy and travelling expenses compared to the same period in 2019.

In the second half of 2020 the Board approved a plan to accelerate the development of products and growth in the Ports and Maritime sector. This was implemented and resulted in significant one-off operating expenditures in the fourth quarter of EUR 1.9 million.

Profit for the period and earnings per share

A substantial strengthening of the EUR versus all major currencies, especially toward the end of the year, resulted in a FX effect of EUR -3.3 million, a EUR 1.1 million negative swing versus the same period last year (-2.2).

Income tax expenses for the fourth quarter 2020 amounted to EUR -0.5 million (-1.0).

The net result for the period amounted to EUR -4.7 million (1.8).

Earnings per share basic and diluted amounted to EUR -0.050 (0.019)

Cash flow

The business generated a positive cash flow of EUR 9.6 million (9.0), thanks to a continuous focus on our cash management process.

Cash flow from investing activities was EUR -2.2 million (-0.3), mainly due to the investment in research and development for new products in Ports & Maritime.

Cash and cash equivalents amounted to EUR 19.2 million as of 31

December 2020 (13.3).

JANUARY-DECEMBER 2020

The order backlog decreased 7.2% compared to the previous

quarter and 15.1% compared to the end of 2019, to EUR 85.0

million. Revenue for the year decreased 19.2% to EUR 158.4

million (196.0) compared the same period 2019.

The decrease is related to the ongoing impact of Covid-19.

EBIT

EBIT for the year decreased 71.5% to EUR 3.5 million (12.3), corresponding to a margin of 2.2% (6.3%).

Profit for the year and earnings per share Finance costs amounted to EUR -1.2 million (-1.9).

Currency exchange differences negatively impacted the profit by EUR 5.5 million versus a positive impact in the previous year of EUR 0.3 million. The main impact in FY2020 was coming from the appreciation of Euro against US Dollar. EUR 5.2 million was related to the revaluation of financial assets and liabilities, and EUR 0.3 million was due to transactions effects.

Income tax expenses for the full year amounted to EUR -0.8 million (-3.2), with an effective tax rate of 26%.

The net result for the year amounted to EUR -4.0 million (7.5).

Earnings per share, basic and diluted, decreased to EUR -0.042 (0.080).

Financial Position

Cavotec's total assets amounted to EUR 200.7 million (210.6) as of 31 December 2020. The leverage ratio amounted to 0.98x (0.98x at 31 December 2019).

In June 2020, Cavotec entered into a new long-term credit facility agreement with a consortium led by Credit Suisse after receiving competing bids from several bank consortia. As a consequence, the old credit facility, classified as current liabilities, has been repaid and the new credit facility has been recognized as non- current financial liabilities.

Employees

The number of full-time equivalent employees in the Cavotec Group was 747 as of 31 December 2020 (769 at 31 December 2019).

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR 000s

Revenue from sales of goods and services Other income

Cost of materials Employee benefit costs Operating expenses Gross Operating ResultDepreciation and amortisation Depreciation of right-of-use of leased asset Impairment losses

Operating Result

Interest income Interest expenses

Currency exchange differences - net Other financial item

Profit / (loss) before income tax

Income taxes

Profit / (loss) for the period

Other comprehensive income:

Remeasurements of post employment benefit obligations

Items that will not be reclassified to profit or loss

Currency translation differences

Items that may be subsequently reclassified to profit / (loss)

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

Total comprehensive income attributable to: Equity holders of the Group

Non-controlling interest Total

Profit / (loss) attributed to:

Equity holders of the Group

Total

Basic and diluted earnings per share attributed to the equity holders of the Group

Average number of shares

Unaudited three months 31 Dec, 2020	Audited 31 Dec, 2020
40,250	47,773	158,437
956	843	3,312
(20,430)	(20,820)	(76,072)
(11,885)	(13,929)	(52,469)
(6,526)	(6,121)	(19,684)
2,365	7,746	13,524
(1,198)	(1,201)	(4,731)
(1,153)	(1,036)	(4,364)
(868)	(203)	(923)
(854)	5,306	3,506
27	8	27
(436)	(423)	(1,610)
(3,304)	(2,162)	(5,495)
395	111	395
(4,172)	2,840	(3,177)
(545)	(1,045)	(815)
(4,717)	1,795	(3,992)
(169)	(338)	(175)
(169)	(338)	(175)
2,389	2,637	1,544
2,389	2,637	1,544
2,220	2,299	1,369
(2,497)	4,094	(2,623)
(2,497)	4,092	(2,623)
(2)	2	(3)
(2,499)	4,094	(2,626)
(4,717)	1,795	(3,992)
(4,717)	1,795	(3,992)
(0.050)	0.019	(0.042)
94,227,668	94,189,230	94,235,531

Audited 31 Dec, 2019

196,017

2,549

(90,814)

(60,249)

(26,038) 21,465

(4,684) (4,266)

(203) 12,312

26 (1,919)

318 (28)

10,709

(3,195)

7,514

(344)

(344)

758 758

414

7,928

7,928 1 7,928

7,514 7,514

0.080 94,206,242

CONSOLIDATED BALANCE SHEET

EUR 000s

Assets Current assets

Cash and cash equivalents Trade receivables

19,151 27,891

Tax assets

4,203

Other current receivables Contract assets Inventories

Assets held for sale Total current assets

3,408 97,819

Non-current assets

Property, plant and equipment Right-of-use of leased assets

18,815

Intangible assets Non-current financial assets Deferred tax assets

51,768

129

9,673

Other non-current receivables Total non-current assets

7,171 102,845

Total assets

Equity and Liabilities Current liabilities Current financial liabilities

(4,144)

Current lease liabilities Trade payables Contract liabilities Tax liabilities

(3,440)

(24,279)

(10,765)

(1,108)

Provision for risk and charges, current Other current liabilities

(3,439)

(9,637)

Total current liabilities

(56,812)

Non-current liabilities

Non-current financial liabilities Non-current lease liabilities

(10,085)

(15,385)

Deferred tax liabilities Other non-current liabilities

(2,123)

(98)

Provision for risk and charges, non-current

(7,753)

Employee benefit obligation

(2,416)

Total non-current liabilities

(37,860)

Total liabilities

(94,672)

Equity

Share Capital

Reserves Retained earnings

(7,074)

Equity attributable to owners of the parent

1,278 (105,965)

Non-controlling interests

Total equity

Total equity and liabilities

(200,664)Audited 31 Dec, 2019

13,254 36,500 3,683 2,797 2,200 38,801 5,363 102,598

18,270

19,425

52,844

280

9,217

8,004 108,040

210,639

(14,462)

(4,081)

(25,483)

(7,534)

(1,531)

(6,772)

(12,125)

(71,988)

(2,644)

(16,140)

(2,405)

(103)

(6,990)

(2,198)

(30,482)

(102,469)

(100,169)

(5,257) (2,714)

(108,140)

(29)

(108,169)

(210,639)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR 000s Audited

Balance as at 1 January 2019

Share CapitalReservesRetained earnings

Equity related to owners of the parentNon-controlling interest

Total equity

(100,169)

(4,646)

4,800

(100,015)

(29) (100,044)

(Profit) / Loss for the period Currency translation differences

Remeasurements of post employment benefit obligations Total comprehensive income and expenses

- - - -

- (758)

(7,514)

(7,514)

- (7,514)

- - (7,514)

(758)

(1) (759)

344 (414)

344 (7,928)

- 344

(1) (7,929)

Employees share scheme

Purchase of treasury shares

Issue of treasury shares to employees Transactions with shareholders

- - - -

(136)

- - - -

(136)

- (136)

38 (99)

(197)

38 (99) (197)

- 38

- (99)

- (197)

Balance as at 31 December 2019

(100,169)

(5,257)

(2,714)

(108,140)

(30)

(108,170)

Audited

Balance as at 1 January 2020

(100,169)

(5,257)

(2,714)

(108,140)

(30)

(108,170)

(Profit) / Loss for the period Currency translation differences

Remeasurements of post employment benefit obligations

Total comprehensive income and expenses

- - - -

- (1,544)

3,992 - - 3,992

3,992 (1,544)

- 3

3,992 (1,541)

175 (1,369)

175 2,623

- 175

3 2,626

Employees share scheme

Issue of treasury shares to employees Transactions with shareholders

- - -

(445)

- - -

(445)

- (445)

(3)

(3) (448)

- (3)

(448)

- (448)

Balance as at 31 December 2020

(100,169)

(7,074)

1,278

(105,965)

(27)

(105,992)

CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited	Unaudited	Audited	Audited
three months	three months	31 Dec, 2020	year
EUR 000s	31 Dec, 2020	31 Dec, 2019*	31 Dec, 2019*
Profit / (loss) for the period	(4,717)	1,795	(3,992)	7,514
Adjustments for:
Net interest expenses	935	256	1583	1,437
Current taxes	97	454	1,525	3,169
Depreciation and amortization	1,198	1,201	4,731	4,684
Depreciation of right-of-use of leased assets	1,153	1,036	4,364	4,266
Impairment losses	868	203	923	203
Deferred tax	448	592	(710)	26
Provision for risks and charges	(565)	(3,896)	(1,479)	(8,185)
Capital (gain) or loss on assets	20	(22)	(787)	(144)
Other items not involving cash flows	2,713	1,753	6,170	(130)
Interest paid	(612)	(380)	(1,638)	(2,118)
Taxes (paid)/received	(704)	(2,583)	(2,468)	(5,327)
5,551	(1,386)	12,214	(2,120)
Cash flow before changes in working capital	834	409	8,222	5,395
Impact of changes in working capital:
Inventories	1,492	4,088	(5)	2,647
Trade receivables and contract assets	4,399	6,426	8,574	6,173
Other current receivables	4,699	1,998	2,023	4,068
Trade payables and contract liabilities	(671)	(3,714)	(479)	(4,597)
Other current liabilities	(1,109)	(218)	(2,627)	88
Impact of changes involving working capital	8,810	8,580	7,486	8,379
Net cash inflow / (outflow) from operating activities	9,644	8,988	15,708	13,774
Financial activities:
Net changes in loans and borrowings	(454)	(7,264)	(3,220)	(35,584)
Repayment of lease liabilities	(1,347)	(1,119)	(4,105)	(3,604)
Capital increase	-	-	-	18,527
Net cash inflow / (outflow) from financing activities	(1,801)	(8,383)	(7,325)	(20,661)
Investing activities:
Investments in property, plant and equipment	(705)	(339)	(1,373)	(1,384)
Investments in intangible assets	(1,527)	(20)	(1,936)	(341)
(Increase)/Decrease of non current financial asset	4	-	151	-
Disposal of assets	72	97	2,459	433
Net cash inflow / (outflow) from investing activities	(2,156)	(263)	(699)	(1,292)
Cash at the beginning of the period	16,022	13,550	13,254	21,257
Cash flow for the period	5,687	342	7,684	(8,179)
Currency exchange differences	(2,558)	(637)	(1,787)	176
Cash at the end of the period	19,151	13,254	19,151	13,254

*Re-presented: the comparative charges for interest paid on lease liabilities have been reclassified from financial activities to operating activities (Interest paid) to enhance comparability (Q419: -156; FY19: -608).

DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS

The group derives revenue from the transfer of goods and services over time and at a point in time in the following Divisions and geographical regions.

31 December 2020

EUR 000s

Airports & Industry

Revenue from external customer Timing of revenue recognition

At a point in time

Ports & Maritime

Total

85,461 4,083

64,657 150,118

Over time

4,236 8,319

Total

89,544

68,893

158,437

31 December 2019 EUR 000s

Airports & Industry

Revenue from external customer Timing of revenue recognition

At a point in time

Ports & Maritime

Total

104,862 6,567

72,873 177,735

Over time

11,715 18,282

Total

111,429

84,588

196,017

31 December 2020 EUR 000s

AMER

Ports & Maritime Airports & Industry

EMEA

13,762 20,022

APAC

Total

35,452 47,564

19,679 68,893

21,958 89,544

Total

33,784

83,016

41,637

158,437

31 December 2019 EUR 000s

AMER

Ports & Maritime Airports & Industry

EMEA

21,423 21,349

APAC

Total

40,773 67,766

22,392 84,588

22,314 111,429

Total

42,773

108,539

44,706

196,017

SEGMENT INFORMATION

EUR 000s

Ports & Maritime

Unaudited

Three months ended 31 December 2020

Revenue from sales of goods and services Other income

Cost of materials and operating expenses before depreciation and amortization

Airports & Industry

17,762 183 (18,094)

Other reconciling items

22,488 773 (19,635)

- -

Total

40,250 956

(1,112) (38,841)

Gross Operating Result

(149)

3,626

(1,112)

2,365

Unaudited

Three months ended 31 December 2019

Revenue from sales of goods and services Other income

Cost of materials and operating expenses before depreciation and amortization

22,433 273 (16,463)

25,340 570 (23,157)

- 47,773

- 843

(1,250)

(40,870)

Gross Operating Result

6,243

2,753

(1,250)

7,746

Audited

Full year 31 December 2020

Revenue from sales of goods and services Other income

Cost of materials and operating expenses before depreciation and amortization

68,893 680 (65,349)

89,544 2,632 (79,513)

- 158,437

- 3,312

(3,363)

(148,225)

Gross Operating Result

4,224

12,663

(3,363)

13,524

Audited

Year ended 31 December 2019

Revenue from sales of goods and services Other income

84,588 567

Cost of materials and operating expenses before depreciation and amortization

111,429 1,981

- 196,017

- 2,549

(70,404)

(100,339)

(6,357)

(177,101)

Gross Operating Result

14,751

13,071

(6,357)

21,465

PARENT COMPANY - CONDENSED STATEMENT OF COMPREHENSIVE INCOME

Audited
year
EUR 000s	31 Dec, 2019
Dividend	-
Other income	2,502
Employee benefit costs	(1,912)
Operating expenses	(1,161)
Operating Result	(571)
Interest expenses - net	(43)
Currency exchange differences - net	(119)
Profit / (Loss) before income taxes	(733)
Income taxes	293
Profit / (Loss) for the period	(440)
Other comprehensive income:
Actuarial gain (loss)	42
Total comprehensive income for the period	(398)
PARENT COMPANY - CONDENSED BALANCE SHEET

CAVOTEC SA

Unaudited three months 31 Dec, 2020	Audited year 31 Dec, 2020
185	-	185
(958)	182	1389
(303)	(312)	(135)
(533)	(235)	(1,330)
(1,609)	(365)	109
(26)	(11)	(56)
3	-	5
(1,632)	(376)	58
19	(91)	(303)
(1,613)	(285)	(245)
(10)	42	(10)
(1,623)	(243)	(255)

CAVOTEC SA EUR 000s

Assets Current assets

Cash and cash equivalents Trade receivables

Tax assets

Other current receivables Total current assets Non-current assets:

3 31 1,303

Investment in subsidiary companies Deferred tax assets

Total non-current assets

137,306 72 137,378

Equity and Liabilities Current liabilities

Bank overdraft

Current financial liabilities Trade payables

(34,117) (2,955)

Other current liabilities

Total current liabilities Non-current liabilities:

(37,653)

Provision for risks and charges - non current Long-term financial debt

(67) (10,000)

Other non-current liabilities

Total non-current liabilities

Total liabilities

Total equity

Total equity and liabilities

(138,681)Audited 31 Dec, 2019

97 2,015

6 8 2,126

137,306 355 137,661

139,787

(44,435)

(2,955)

(121) (1,495)

(49,006)

(25)

- (64)

(89)

(49,095)

(90,692)

(139,787)

General information

Cavotec wants to contribute to a future world that is cleaner, safer and more efficient by providing innovative connection solutions for ships, aircraft and mobile equipment today. We thrive by shaping future expectations in the areas we are active in. Our credibility comes from our application expertise, dedication to innovation and world class operations. Our success rests on the core values we live by: Integrity, 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 limited liability company incorporated and domiciled in Switzerland and listed on Nasdaq Stockholm Mid Cap.

remains that we have accounted for the most likely eventualities of the process. The latest development in the case supports this position.

Noteworthy risks and uncertainties

Cavotec's significant risks and uncertainties are divided into three categories, market, credit and liquidity risks. In these categories, there are both risks due to political and macroeconomic trends and specific risks directly linked to business carried out by the Group. Market risk includes currency and interest rate risk. Credit risk includes the risk of managing our customers and other receivables while liquidity risk includes the management of cash in a diverse, global group.

These unaudited Financial Statements have been approved by the Board of Directors for publication on 25 February 2021.

Basis of preparation of Financial Statements

This quarterly report was prepared in accordance with IFRS, applying IAS 34 Interim Financial Reporting. The same accounting and valuation policies were applied in the most recent annual report. The amendments to the standards that became applicable for the current reporting period did not have an impact on Cavotec accounts. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended in December 2020. The preparation of quarterly financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The fair values of the non-current financial assets, current financial liabilities and non-current financial liabilities are not materially different from their carrying amounts.

Cavotec is not exposed to material seasonal variations in its operations.

Segment information

Operating segments have been determined on the basis of the Group Management structure in place and on the management information and used by the Chief Operating Decision Maker (CODM) to make strategic decisions. Our two divisions are set out below and referred to collectively as the core businesses.

Ports & Maritime - development, manufacture and service of innovative automation and electrification technologies for the global ports and maritime sectors.

Airports & Industry - development, manufacture and service of fully integrated gate and remote apron solutions for Airports, and development and manufacture products for Industry, such as cranes, energy, processing and transportation, surface and underground mining, and tunnelling.

Customers of both divisions are supported by a Services organisation that was launched mid 2018.

Legal disputes

In the long running litigation matter in California the Group's accounting position is unchanged during the quarter and our view

Covid - 19 Update

The COVID-19 pandemic has had a significant effect on the global economy. The impact on Cavotec is mainly delays in decisions from customers on new orders as well as delays in taking deliveries of product or services. At the date of this report all Cavotec facilities are open.

With the high uncertainty surrounding the situation and potential initiatives by authorities and customers, it is very difficult to predict the full financial impact that the situation may have on the Group for the coming quarters. As of December 31, 2020, there is no significant impact on any balance sheet items. The Group benefited by government assistance funds in different Countries, mainly related to employee costs, but the impact on the financials was not material.

A more detailed description of Cavotec's risks and how they are managed is included in the Annual Report 2020.

Forward looking statement

Some statements in this report are forward-looking, and the actual outcome could be materially different. In addition to the factors explicitly discussed, other factors could have a material effect on the actual outcome. Such factors include, but are not limited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of competing products and their pricing, product development, commercialisation and technological difficulties, interruptions in supply, and major customer credit losses.

Key events during the year

In February 2020, a company owned building located in Mooresville (NC, USA) has been sold for USD 2.6 million (EUR 2.4 million). As the building was accounted as Asset held for Sale with a book value of USD 1.8 million (EUR 1.7 million), the Company recognized in the same month a capital gain of USD 0.8 million (EUR 0.7 million) in Other income.

Financial calendar

April 30, 2021	Q121 Report
May 27, 2021	Annual General Meeting, Lugano
July 30, 2021	Q221 Report
October 29, 2021	Q321 Report
February 25, 2022	Q421 and Annual Report 2021

Conference call in connection with publication of the quarterly report

A conference call for shareholders, analysts and media will be held on 26 February 2021 at 10:00 CET. Participating on the conference call from Cavotec will be Mikael Norin, CEO, and Glenn Withers, CFO.

Conference call Dial-in numbers: SE: [phone]

UK: [phone] US: [phone]

Weblink:https://tv.streamfabriken.com/cavotec-q4-2020

Quarterly Reports onwww.cavotec.com

The full report for the period January-December 2020 and previous quarterly and full year reports are available at:http://ir.cavotec.com/financial-reports

Analysts & Media

Johan Hähnel - Investor Relations Manager

Mobile: [phone] - Email:[e-mail]

This is information that Cavotec SA is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07:00 CET on 26 February 2021.

Cavotec SA

Via G.B. Pioda 14

CH-6900 Lugano, Switzerland [phone] [e-mail]