2022 Key highlights

2022 has been another extraordinary year for Norican Group. Our customers, suppliers and the global Norican team once again faced new and unprecedented challenges. From the war in Ukraine and an ongoing energy crisis, to continued supply chain difficulties and a very challenging COVID situation in China. All this has strengthened us further - we responded quickly and adapted intelligently.

But more than anything, 2022 has been a year of positive, forward-looking action. Fueled by a record-breaking order backlog at the beginning of the year, we invested in our business and strengthened it strategically.

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A global team to be proud of

As a corporate business we are held accountable for our actions and we take this responsibility very seriously.

These responsibilities run through three of our four core values as a business:

• leading for sustainability
• developing employee talent
• respecting diversity and teamwork
The fourth, delivering on every commitment, holds us to account on the other three and the promises we make to our communities.

In short, we strive to embed the highest standards of sustainable, ethical and good conduct deep in our culture, in our behaviors and practices.

It means we can and must always do better. Every year.

In 2022 we welcomed:

  • The Monitizer technology platform as a brand agnostic solution and broadened its applications. The result: new deployments are underway across the world, all on new and improved IIoT infrastructure.

Financial update

Norican Group performed strongly in 2022 delivering revenues of €518.6m (+32%) and EBITDA of €67.5m (+38%). We recovered well from the effects of COVID19 and, following the rationalisation of the group’s footprint and headcount, is now a stronger and more resilient business. We continue to grow our EBITDA margin, ending the year at 13.0% (+50 basis points), exceeding pre-COVID19 levels and from a lower revenue base.

Operating cashflow ended at healthy €32.1m, reflecting the significant increase in revenues which drove the need to increase inventories and work in progress. Norican has continued its disciplined approach to preserve liquidity and improve cash conversion. Despite the reduced cash flow versus previous years, and the acquisition of Simpson, our liquidity position therefore remained strong throughout 2022.

A testament to prudent management and significant cash generation in recent years, Norican successfully refinanced its debt in February 2023, redeeming the €340m bond and replacing it with €270m of new term loans, despite significant headwind in the financial markets. The combination of an improving EBITDA, and the ability to generate cash through the economic cycles, has enabled Norican to reduce its debt and create a solid foundation for Norican going forward.

€m

2022

2021

2020

2019

2018

Revenue

519

394

350

504

534

EBITDA

67

49

33

63

66

Margin %

13%

12.5%

9.4%

12.4%

12.4%

Operating cashflow

32

73

54

57

42
 

2022 Environment Review

2022 Social Review

2022 Governance Review

2023 and beyond

  • The Simpson business will be fully integrated into the Norican infrastructure, and we expect to see benefits both in terms of cost and additional sales. Growing and strengthening our aluminum technology business remains a key focus, where electrification and light-weighting in the automotive industry is an important demand driver for our customers.
  • We will continue to broaden our direct and indirect exposure to further reduce Norican’s dependency on any one application field. The recent success in broadening the application use in DISA has given us appetite for more.
  • Monitizer digital solutions remain a key focus for longer term growth, and it remains an important differentiator. Norican will also welcome more OEMs to use the hardware agnostic Monitizer platform.
  • Over the past two years, we have made significant, ambitious ESG commitments, especially around our environmental and climate impact. In 2022, we developed targets and put systems in place to better track our progress. We will continue to work on our direct impact, but also with our suppliers and with customers to support them in reducing their CO2 emissions. Keeping sustainability at the heart of projects within Norican, we expect our targets validated by SBT in Q2, and will build on the EcoVadis rating to improve further.
  • We look forward to attending the large global foundry show, GIFA in Germany in June. It will be great to engage with customers and other stakeholders on a bigger stage again. We have decided to participate with as low a carbon footprint as possible, so new developments will mostly be on digital display. We believe in trade shows as opportunities to exchange knowledge and network, not as the hardware exhibitions of yesteryear.
 

 

A special thank you from the Norican Executive Team

"Our colleagues around the world have been dedicated and worked incredibly hard in the face of continuing challenges… again. Not only have supply chain difficulties, political unrest and inflation tested us all, but competitive pressures and technological change have also intensified. Norican has not only operated efficiently but we have continued to innovate and build the business – and helped our customers and partners build theirs.

We thank all our customers, suppliers and financial stakeholders for their continued trust, commitment, and collaboration, and for the value they place on our products and services. 

Norican is a strong business with great technology brands, but we are only as good as our team. A special thank you goes out to our almost 2,000 Noricans for having delivered yet again. Our employees make us confident that whatever challenges lies ahead in 2023 will be handled, and handled well."

 

 

Norican Executive Team

Above: Norican's Executive Team: Declan Guerin, Anders Wilhjelm, Ulla Tønnesen, Lars Priess & Peter Holm Larsen