Summer Update

Update from CEO Jens Ebbesen:

"There's no doubt that the first half of 2024 has been extremely turbulent for Eltwin and our customers and our suppliers. We have seen a huge destocking in the market. We have seen a delay in the green transition and actually also in the rollout of heat pumps, which has a huge impact on the Eltwin business.

We actually now start seeing the end of this destocking, and we start seeing our customers pulling in more volumes, not to the same levels as we experienced in 2023, but a reasonable level. The other positive news is that we actually start seeing that the effect of some of the initiatives we’ve started years back on moving into other business areas, start paying off. That will help Eltwin and our customers and our suppliers in the years to come, because we are getting more diversified both from the product point of view, but also geographically.

We hope that that would positively benefit all our partners, and we are looking forward to serving our new customers in the years to come.

Eltwin’s business is also being affected not only by the green transition or the slowdown in green transition, but also the general electrification of our society. We still see some constraints in the supply markets, especially on power electronics, where we had underlying growth of about 6 to 8%. That means that there has not come sufficient capacity into the market, and that means that when we're bouncing back at the end of this year, beginning of next year in the general market, then that will also affect the power electronics market.

So we can only encourage our customers to plan ahead and be aware that we are probably having this rippling effect in electronics. That means that you need to take care because else you will run into problems in 2025 with material constraints not similar 100% to what we saw in 2022 and 2023, but it will have an impact. So plan ahead.

Else, as I said earlier, it has been turbulent, but we believe that will be back on the growth trend and nearly be back to the same strength as we were in 2023. I hope you will enjoy your summer. We are definitely looking forward to serving you and working with you going forward. Thank you very much."