ONWARDS . . .

We have experienced a prolonged period of strong results up until now, and are consequently in a solid financial position. The good performance during the first quarter of the year further strengthened the Group. 

Looking forward, however, there are many concerning external factors. Staff absence related to Covid-19 is expected to continue, at the same time as escalating material prices and long delivery times are now affecting most of our operations to some extent. When it comes to input components, the lack of access to semiconductors is the main problem. This has affected us during Q1 and will continue to disrupt our processes in future in the form of delays in various projects. The global situation is also affecting the desire to invest, above all among major players, while general inflation is giving rise to reluctance in all stages of consumption. To date, we have not identified any direct impact on the Group as a result of the war in Ukraine. The sanctions that are being introduced against Russia, as well as any countermeasures, may affect parts of our operation, however, for example in the form of a lack of access to energy. There is also a risk that the difficulties that already exist in relation to the supply of materials and components will increase.

We are opting to take an aggressive approach and are continuing our initiatives within neighbouring business areas and on new markets. Interesting strategic collaborations have been launched, for example in relation to batteries for electric vehicles. Furthermore, the successes achieved on the North American market in recent years mean that we will be increasing our presence there in future.

Roughly half of the Group’s volumes are produced in the form of direct assignments from customers. The signals we are getting from several of these indicate gradually lower volumes and falling demand in future. In order to balance this, we are strengthening resources linked to our own products through a higher rate of development and intensified marketing activities.