Fourth quarter report 2023

SERSTECH GROUP, 1 OCTOBER - 31 DECEMBER 2023

• Net sales amounted to KSEK 4 209 (3 488), an increase of 21%.
• EBITDA amounted to KSEK -4 390 (-13 149), corresponding to an EBITDA margin of -104%.
• EBIT amounted to KSEK -7 405 (-16 143), corresponding to an EBIT margin of -176%.
• Cash flow from operating activities amounted to KSEK 4 667 (-1 391).
• Earnings per share amounted to SEK -0.04 (-0.19).
• Earnings per average number of shares amounted to SEK -0.04 (-0.19).

SERSTECH GROUP, 1 JANUARY - 31 DECEMBER 2023

• Net sales amounted to KSEK 62 913 (17 112), an increase of 268%.
• EBITDA amounted to KSEK 12 900 (-21 245), corresponding to an EBITDA margin of 21%.
• EBIT amounted to KSEK 955 (-29 278), corresponding to an EBIT margin of 2%.
• Cash flow from operating activities amounted to KSEK 7 632 (-13 158).
• Earnings per share amounted to SEK 0.00 (-0.35).
• Earnings per average number of shares amounted to SEK 0.00 (-0.35).

MESSAGE FROM THE CEO

In 2023, Serstech experienced an inflection point, marking a return to market normalcy after three years of pandemic-induced customer inactivity. We increased our net result by 30.3 MSEK, achieving a positive net result for the first time at 715 KSEK. Our EBITDA result improved by 34.1 MSEK, reaching 12.9 MSEK. Net sales witnessed a remarkable increase of 268%, and our operational cash flow rose to 7.6 MSEK, an improvement of 20.8 MSEK compared to 2022.

During the pandemic, we focused on developing our new Serstech Arx and in 2022 we started to prepare for the return of the market, building relatively large inventory of components and started to rebuild the team. The rights issue we completed in January allowed us to ramp up as needed, and we managed to deliver on time throughout the year, despite the steep increase in volumes and the persistent component shortage.

In addition to growing the team, building component inventory, and ramping up production, we redesigned Serstech Arx, which now only uses modern, readily available electronic components. The work was concluded before the end of the year, and we now can produce even better and faster products in a more streamlined production process.

In December we achieved our ISO 9001 and 14001 certifications, which will strengthen our competitiveness in the evaluation process of some tender bids. The certifications are good to have, but more important is the underlying quality management system, which allows us to measure and continuously improve every detail of how we work.