Combitech presents year-end report for 2019

Combitech, the Nordic solution and consultant partner, releases its annual report for 2019.The reports shows increased sales and stable profitability.

- During the year, sustainability has risen to number one on everyone's agenda, and digitalization and security are seen as important enablers for building a more sustainable society. These are two of our profile areas and we are proud to be able to help our customers in their work towards becoming more sustainable, says Hans Torin, CEO of Combitech.

Combitech is part of Sustainable Underground Mining, SUM, a partnership where LKAB, ABB, Epiroc, AB Volvo and Combitech joined forces for the future's digital, autonomous and carbon-free mine. During the year, Combitech entered into a new collaboration with Stena Recycling and ABB to increase the amount of recycled material in the manufacturing industry.

- More and more companies realize that we need to collaborate in partnerships to solve the great challenges of industry and society, no one can do it on their own. Larger companies are joining forces to find  new solutions that pave the way for a more circular society, continues Hans Torin.

Digital ecosystem and innovative collaboration are central parts of such partnerships. This is in line with Combitechs’ strategy to support our customers all the way from facilitating collaborations and designing common goals to building digital ecosystems that are integrated with each other, while protecting safety-critical systems and information.

KEY HIGHGLIGHTS DURING THE YEAR

  • The Finnish subsidiary Combitech Oy has signed an agreement with the Finnish Armed Forces for Life Cycle Support Services for military aviation and maritime defense, as well as for intelligence, surveillance, and command and control systems. The overall value of the procurement is € 5.1 million.
  • Combitech entered into a collaboration with Stena Recycling and ABB to increase the amount of recycled material in the manufacturing industry. In a first project, AI, machine vision and robotization were used to streamline the recycling of vacuum cleaners.
  • Exclusive collaboration agreement with RUAG Space on development and competence.
  • The Nordic region's largest security conference, Paranoia, was held for the twelfth time, with world-leading security experts and over 700 participants. Norwegian Prime Minister Erna Solberg opened the conference. Combitech's Norwegian company Watchcom arranged the event.
  • Tre and Combitech entered a collaboration and offer a service for Private Networks, that gives companies the opportunity to have their own LTE networks (4G) and later also 5G networks. Through this collaboration, Combitech and Tre want to contribute to increasing the rate of digitalization and strengthening competitiveness in Swedish industry.
  • Combitech signs a number of framework agreements within the public sector, covering IT-consulting services and information security. For example agreements with Stockholm Stad, Växjö Kommun and Stockholm Vatten och Avfall.
  • During the period Combitech’s commitments in the civil and military defense, has increased. Combitech supports a large number of authorities in the reconstruction of the Swedish total defense.
  • Combitech has been recognized for its sustainability work during the year. Combitech received SJ's Environmental Diploma for Environmental Smart Travel and the project Sustainable Underground Mining, SUM was presented at a panel discussion at COP 25, the UN climate change conference 2019 in Madrid. SUM is a partnership where LKAB, ABB, Epiroc, AB Volvo and Combitech has joined forces for the future's digital, autonomous and carbon-free mine.

KEY FIGURES

Order situation

Order intake was SEK 2,526 million (SEK 2,521 million). The order intake is a mix of small and mid-sized orders, often related to framework agreements, as well as large orders running for several years.

Sales revenue

Sales revenue were SEK 2,506 million, an increase by 2.6 percent compared to 2018 (SEK 2,443 million).

Earnings and margin

Operating earnings (EBIT) decreased by 5 percent to SEK 168 million (SEK 177 million).  The operating margin was 6.7 percent, which is a decrease compared to 2018 (7.2 percent).

Operating cash flow

The operating cash flow decreased to MSEK 136 million (MSEK 185 million).

FOR ADDITIONAL INFORMATION

Åsa Scherling, Head of Communication Combitech
Phone: +46 (0)734 18 77 98, E-mail: asa.scherling@combitech.se

Merton Kaplan, IR-Manager Saab AB
Phone: +46 (0)734 18 20 71, E-mail merton.kaplan@saabgroup.com