2
Contents Operations
Our business entities Sustainability Report Financial information
Investor and shareholder information
Ependion-connecting the AlpsEpendion is playing a key role in connecting thousands of transformer stations in the Austrian Alps using 8,000 routers from the Westermo business entity. The customer is Energie AG, using a solution built on a private mobile LTE network that excels in mountainous areas, offering cybersecurity advantages such as protected frequencies. Westermo's solution,
on the 450 MHz frequency band, means fewer base stations are needed, which is a significant cost advantage. Installations will take place in 2024 to 2026.
Energie AG Oberösterreich supplies more than 450,000 customers with electricity via its 33,000-kilometer high- and low-voltage network generated by 43 hydroelectric power plants, 11 thermal power plants and recycling facilities, 100 solar systems, and 14 wind turbines.
EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024
CONTENTS 3
Our business entities
Contents
Sustainability Report Financial information
Investor and shareholder information
Operations
This is Ependion 4
The year in brief 5
Market overview 6
CEO's statement 8
Financial targets 10
Our journey continues 11
Three reasons to invest in Ependion 12
The share 13
Megatrends and drivers 15
Business strategy 17
Acquisition agenda 18
Our business entities
Westermo business entity 20
Beijer Electronics business entity 26
Sustainability Report
Contents, Sustainability Report 34
Sustainability strategy 35
Statements from our Group Head of Sustainability & CFO 36
Global sustainability issues 37
Double materiality analysis 38
Sustainability framework 40
Sustainability Statement 51
Taxonomy Regulation 77
UN Global Compact 82
Auditor's opinion 83
Financial information
Directors' Report 85
Consolidated Income Statement 89
Statement of Comprehensive Income 89
Consolidated Balance Sheet 90
Consolidated Statement of Changes in Equity 91
Consolidated Cash Flow Statement 93
Parent Company Income Statement 94
Parent Company Balance Sheet 95
Parent Company Statement of Changes in Equity 96
Parent Company Cash Flow Statement 97
Notes 98
Corporate Governance Report 2024 132
Board of Directors' certification 136
Board of Directors and auditor 137
Audit Report 139
Senior executives 144
Investor and shareholder information
Five-year summary 146
Definitions 148
Annual General Meeting 149
EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024
THIS IS EPENDION 4
Contents Operations
The year in brief Market overview CEO's statement
This is EpendionFinancial targets
Our journey continues
Three reasons to invest in Ependion The share
Megatrends and drivers Business strategyi Acquisition agenda
Our business entities Sustainability Report Financial information
Investor and shareholder information
Ependion is an expansive global technology group delivering digital solutions for secure control, visualization and data communication for industrial applications in environments where reliability and high quality are critical.
Our name-Ependion-is inspired by the Greek word for investments, and is reminiscent of the group's mission: to invest in people, technologies and products that contribute to a secure and connected world.
Our overarching strategy is founded on creating long-term value through a decentralized organization through strong entrepreneurship, collective financing, monitoring and support, and a proactive acquisition agenda.
Key indicators
Sales
EBIT
Operations in
950 2.3 251 21billion SEK
million SEK
countries
coworkers
2024 | 2023 | 2022 | |
Sales, MSEK | 2,258.1 | 2,470.6 | 2,128.4 |
EBITDA, MSEK | 427.5 | 474.0 | 354.8 |
EBITDA margin,% | 18.9 | 19.2 | 16.7 |
EBIT, MSEK | 250.9 | 321.7 | 201.1 |
EBIT margin,% | 11.1 | 13.0 | 9.4 |
Profit after tax, MSEK | 157.0 | 200.4 | 146.4 |
Earnings per share, SEK | 5.45 | 6.93 | 5.07 |
Dividend per share, SEK a | 1.25 | 1.00 | 0.50 |
Equity/assets ratio,% | 48.3 | 45.2 | 40.9 |
a The amount for 2024 refers to the Board's proposed dividend.
EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024
THE YEAR IN BRIEF 5
Contents Operations
This is Ependion
Our journey continues
Three reasons to invest in Ependion The share
Megatrends and drivers Business strategyi Acquisition agenda
Our business entities Sustainability Report Financial information
Investor and shareholder information
Q1January: the Westermo business entity opens a sales office in Denmark with
its main focus on the expansive energy market.
March: the Beijer Electronics business entity adopts a new strategy focused on three customer segments: marine, manufacturing and applications for
rugged environments. Its new production unit in Malmö starts serial production of X2 HMIs.
Q3September: both business entities are present at key trade events: Westermo is at InnoTrans, the international trade
fair for transport technology, while Beijer Electronics showcases its new X3 and WebIQ at the SMM maritime trade fair.
Q4November: the Beijer Electronics business entity launches X3 web, the first member of its new family of HMIs.
A year of investments for the future
Order intake
2,039MSEK (-12%)
X3 web is the first product release of next-gen operator panels from Beijer Electronics. The X3 series is one of the group's largest-ever development initiatives.
Sales
2,258MSEK (-9%)
Operating cash flow
460MSEK (+38%)
EBIT
251MSEK (-22%)
Product development expenditure
313MSEK (+11%)
Q2
May: the Westermo business entity acquires a minority stake in UK software company Blu Wireless, which has developed new technology for enhanced connectivity on board trains.
June: the Westermo business entity secures its first train order on the major Indian market, where the business entity decided to start up a sales function and manufacturing in 2023.
EPENDION ANNUAL & SUSTAINABILIT Y REPOR T 2024