0E96 Enedo Plc

Enedo Plc Publishes Business review July 1 – September 30, 2022 - Q3/2022 Net profit turns positive due to increased sales and executed cost savings

ENEDO PLC   Business Review October 26th , 2022 klo 9:45

Enedo Plc Publishes Business review July 1 – September 30, 2022 - Q3/2022 Net profit turns positive due to increased sales and executed cost savings

Business Review figures are unaudited.

July-September 2022 highlights

• Net sales increased by 41% vs same period of 2021, and amounted to EUR 11,6 million (EUR 8,2 million).
• Ebitda was positive with EUR 1,4 million (EUR -0,4 million), an increase of EUR 1,8 million.
• Operating profit / Ebit positive with EUR 0,6 million (EUR -1,2).
• Net profit for the period was positive with EUR 0,4 million (EUR - 1,4 million).
• Orderbook at the end of Q3 2022 was EUR 38,3 million (EUR 34,1 million).
• Actions to improve logistics impacting positively to delivered volumes & financial performance.
• The cash situation remains challenging.
• Inission AB’s ownership in Enedo increased to 95,85% in the mandatory public tender offer

Key Figures

	7-9/22	7-9/21	1-9/22	1-9/21	1-12/21
MEUR	3mo	3mo	9mo	9mo	12mo
Net sales	11,6	8,2	32,5	26,4	36,4
Ebitda	1,4	-0,4	2,3	-1,6	-3,2
Operating profit / Ebit	0,6	-1,2	0,1	-4,1	-6,6
Net profit for the period	0,4	-1,4	-1,0	-1,4	-4,5

CEO’s comments

Net sales for the Q3 2022 were EUR 11,6 million growing 41% compared with EUR 8,2 million net sales a year ago. The growth is driven by the stong order book and improved logistics and efforts on sourcing the needed components. The order intake continued strong which led to an orderbook of EUR 38,3 million.

The Power Supplies product category’s net sales increased to EUR 7,8 million with an increase of EUR 2,9 million, 59%, compared to net sales of EUR 4,9 million in Q3 2021, driven by increased demand from key customers.

The Led Drivers product category's net sales were EUR 2,7 million, which is in line with the net sales of Q3 2021.

The net sales of the Power Systems product category increased with EUR 0,5 million and was EUR 1,2 million, an increase of 67% compared to the weak comparison period. The increase is mostly impacted by good order intake and continued efforts to improve logistics.

The groupwide turnaround program has been fully implemented by the end of Q3 2022 and the positive impacts can be seen on the financial performance of Q3 2022. Enedo will be countinously improving operative processes and taking actions on identified risks. The global shortage of components is prevailing.

We are taking actions also to improve performance of the production site in Tunis, for example improving the demand management and adressing bottlenecks. In addition the scouting for external EMS partners is continued. Inission AB’s ownership in Enedo increased to 95,85% as a result of mandatory public tender at the end of September. Becoming a subsidiary of Inission AB improves the co-operation between Enedo & Inission and will further enable synergies and co-operation. Becoming a subsidiary of Inission also strengthens our financial capabilities.

As Inission AB holds more than 90 per cent of all the shares and voting rights in Enedo, it therefore has the right and the obligation under Chapter 18, Section 1 of the Finnish Companies Act to redeem the remaining shares in Enedo held by the other shareholders at fair price.

After the reporting period Inission AB has decided to exercise its redemption right and to redeem all the remaining shares in Enedo held by the other shareholders of Enedo. Inission has also informed Enedo about initiating an arbitration procedure with respect the redemption and the redemption price.

	7-9/22	7-9/21	1-9/22	1-9/21	1-12/21
NET SALES BY GEOGRAPHY, MEUR	3mo	3mo	9mo	9mo	12mo
Americas	2,1	1,8	7,0	5,1	7,4
EMEA	6,4	4,5	17,3	14,9	19,3
APAC	2,0	1,2	5,3	3,5	5,1
Finland	1,1	0,8	3,0	2,9	4,6
Total	11,6	8,2	32,5	26,4	36,4
	7-9/22	7-9/21	1-9/22	1-9/21	1-12/21
NET SALES BY PRODUCT CATEGORY, MEUR	3mo	3mo	9mo	9mo	12mo
Power Supplies	7,8	4,9	20,8	16,3	23,4
Led Drivers	2,7	2,7	7,9	7,2	9,2
Power Systems	1,2	0,7	3,8	2,9	3,9
Total	11,6	8,2	32,5	26,4	36,4

Financial performance

The liquidity situation of the company has remained challenging although the value of inventories has decreased with EUR 0.7 million from the peak reached during summer period of 2022. Enedo is taking actions to further decrease the level of inventories, this combined with increased profitability should eventually improve our liquidity position.

The Group’s cash position at the end of September was EUR 1,6 million compared to EUR 1,4 million at the end of the June 2022. The cash flow from operating activities after investments was EUR 0,7 million. The amortization of loans was in total EUR 0,5 million.

At the end of Q3 2022 Enedo has agreed to extend the loan periods of the EUR 5,0 million loan and the new maturity date is September 30, 2023. The new maturity date of the EUR 1.95 million shareholder loan has been extended until November 30, 2022. Enedo is currently evaluating options to either extend the payment period of the shareholder loan further or alternatively to pay out the shareholder loan by 30 November 2022.

ENEDO PLC Board of Directors

For further information please contact Mr. Mikael Fryklund, CEO, tel. +358 40 500 6864,On 26th of September at 14:00–15:00.DISTRIBUTIONNasdaq Helsinki OyPrincipal media

Enedo Enedo is a European designer and producer of high-quality electronic power supplies and Power systems for critical equipment even in the most demanding environments. Enedo´s mission is to make electricity better – more reliable, more secure, more energy efficient – and just right to fit its purpose. Enedo´s three main product categories are Led Drivers, Power supplies and Power Systems. In 2021 the group´s revenue was EUR 36,4 million. Enedo has 330 employees and its main functions are located in Finland, Italy, Tunisia and USA. The group´s head office is in Finland and parent company Enedo Oyj is listed on Nasdaq Helsinki Oy.

www.enedopower.com