Sdiptech AB (publ) publishes interim report for the first quarter (January - March) 2020 - Seite 3

CURRENT SITUATION – Delays rather than lost business
For Sdiptech, pandemic related interference and restrictions of movement mainly means delays in deliveries, not lost business nor customers. Our customers are responsible for critical societal infrastructure and are generally stable and well-funded. We can determine that our offerings and products are relatively unaffected by the pandemic and we are preparing to catch up with the delays as soon as restrictions allows it.

The Managing Directors of our units are doing a fantastic work ensuring employees’ health, alongside with continued product and service deliveries to our customers, despite present difficulties in markets where mobility is very limited. We have a central team dedicated to update our business units with the latest information from authorities, and to aid with making decisions and take actions in a rapidly changing environment. New key figures have been introduced to be monitored on a weekly basis, allowing us to proactively identify pandemic consequences and have a good visibility of developments in each business unit.

As of today, April 29^th, the situation across the group is as following:

• In Sweden, we currently deliver approximately 90 percent of planned orders.
• In the UK, where restrictions still cause noticeable disruptions, the corresponding key figures are around 70 percent.
• In Germany and Austria, restrictions are easing, which allows us to gradually resume delayed deliveries, in which we are currently deliver approximately 85 percent of planned orders.
• In Norway, with customers mainly in municipal water treatment, deliveries are unaffected at present 100 percent.

   
Overall, across our 32 business units, six out of ten today experience minor disruptions or are completely unaffected by Covid-19. We have a strong financial position with a good cash flow and well-developed credit facilities that enable us to manage our operations even in an uncertain environment. Our 32 operations in various segments provide good risk diversification.

OUTLOOK – Difficult to predict, but we are well equipped
It is a mere impossibility to predict when the current restrictions put in place to limit the pandemic will be decreased or completely lifted, and how the recovery will pan out. The current global uncertainty is palpable, and we are taking a humble stance in regard to making predictions about the future. We feel confident about the long-term outlook, but it is most likely that sales and earnings for the second quarter will be affected by the pandemic. However, we can conclude that our business model is suitable to handle periods of great uncertainty. Thanks to our decentralized structure, we can make quick decisions locally for each of our business unit close to our customers, staff and suppliers. If there is any need for actions, these can be tailored for each business unit according to the specific situation and adapted to current regulations and local support from authorities.