Six reasons to invest in Semcon
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Björn Strömberg
CFO
+46 (0)31 721 03 05
Contact me

Six reasons to invest in Semcon

Increasing demand for digitisation and innovative solutions for products and services makes Semcon well positioned for growth. The combination of cutting-edge expertise in physical products, production and digital services has created a unique offering for a large customer base in a broad range of industries. A strong financial position also provides an opportunity to grow through acquisitions.

1. Growing need for technology

Investments in new technology, such as digitisation, electrification, autonomous applications and AI, are expected to rise by 15–25 per cent per year in coming years – often through prioritised and less cyclically sensitive initiatives. At the same time, the outsourcing trend will strengthen as the need for specialist expertise grows in combination with a tendency among customers to streamline their operations.

2. Increased focus on service and aftermarket solutions

As customers increasingly prioritise a more efficient service and aftermarket business, demand is on the rise for digital product information, an area where Semcon’s offering is at the very forefront worldwide. More than 70 per cent of sales of the offering comprise Managed Service contracts, which create a good foundation for long-term and profitable cooperation – a share that is expected to grow further.

3. Unique combination produces broader customer base

In contrast to companies specialising in either IT or engineering, Semcon can offer its customers both – a unique combination of digital services and advanced product and production development. This entails greater relevance for a broader customer base, from traditional technology development to the latest AI solutions. Integrated solutions create the conditions to improve growth and efficiency and to reduce costs for our customers.

4. Greater industry differentiation

Semcon’s broad industry presence allows it to balance available expertise based on where demand and profitability is most advantageous. This creates long-term and less cyclically sensitive partnerships. High-tech expertise from the automotive industry is increasingly in demand from other industries, which are facing comprehensive digitisation challenges.

5. Inspiring colleagues the basis of profitable growth

The combination of Semcon’s international cutting-edge expertise and the diversity of its perspectives create the conditions for smart solutions that put people first. It creates satisfied users, which means both customers and Semcon become more competitive and profitable. Customer satisfaction and employee commitment are at record levels.

6. Strong financial position

Since 2015, Semcon has doubled its operating margin and is nearing its profitability target of 8 per cent. The strong balance sheet forms a stable foundation for organic growth and acquisitions. Over the past three years, dividends paid to shareholders have averaged 67 per cent of earnings per share. Own shares have also been frequently repurchased since 2017. Earnings per share rose 15 per cent in 2019 to SEK 6.04 (5.25). Earnings per share rose 18 per cent on a rolling 12-month basis to SEK 6.35 (5.39) on 31 March 2020.

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Björn Strömberg
CFO
+46 (0)31 721 03 05
Contact me

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