Board of Directors' report

Nature and location of the business

OC Industries AS is a owner company where the business includes å own shares in companies in the Group. The group management is employee in OneCo AS, and subsidiary of OC Industrier AS

OC Industrier AS is located in Oslo municipality with subsidiaries in Kristiansand, Oslo, Sandnes, Arendal, Bergen and Stockholm. The Group's operating businesses is Geographically limited to Norway and Sweden

OneCo's business idea is the following: 

OneCo delivers concepts, services and expertise in electrical engineering, automation and telecommunications as builds and sustainable future and enables the green shift and digitalisation of society. The future is electric and OneCo connects it

OC Industrier conducts its operations within six business areas, which are described in more detail in the next chapter

More about the business areas

FO Telecom

The core business is related to to operation, maintenance and development of telecoms infrastructure (fixed and mobile) in Norway. FO Telekom had a turnover of in 2021 on NOK 2,158 million, which is an increase on 4 % from previous year. FO Telekom's ambition is to maintain position as the market leader in Norway within telecoms

FO Electrical

The core business is related for service and projects within electrical and electric power i Norway. FO elektro had a turnover in 2021 on NOK 1,433 million, which is an increase of on 24 % from previous years. The ambition of FO Elektro is to be and leading electrical contractor in Norway

Business Unit Sweden

The core business is related to to service and projects within telecoms, electric power and power/IoT. FO Sweden had a turnover in 2021 on NOK 580 million, a reduction of on 11% from previous years. The ambition to Business Unit Sweden is to increase profitability and sales through focused investment in selected niches.

FO Infra

The core business is related to to projects within transport (road and rail). FO Infra had a turnover of in 2021 of 292 million, a reduction of on 6 % from previous years. The ambition of FO Infra is to your and clear position as prime contractors within selected market segments and geographies in a market in strong growth.

FO Technologies

The core business is related to service and projects within security and automation in Norway. FO Technologies had a turnover in 2021 of NOK 204 million, a reduction of on 3 % from previous year. The ambition of FO Technologies is to become a of the leading players within high security (electronic and physical) and selected segments within industrial automation.

FO Marine and Offshore

The core business is related to maintenance and modifications within marine and offshore. FO Marine and Offshore had a turnover of in 2021 on NOK 94 million, an increase of on 57 % from previous years. The ambition to FO Marine and Offshore is to take a leading position as a repair yard with dock, and offer hybridisation and other services related to the green shifted.

Explanation of the financial statements

Operating income in the Group was on NOK 4,760 million in 2021 word NOK 4,467 million in 2020. Operating profit for the Group was on NOK 103 million in 2021 compared to NOK -73 million i 2020. The Group's profit before tax was NOK 57 million compared with NOK -107 million. i 2020. The improvement is due to i large degree that drift go better than that which was case in 2020, where acquisitions and merger affected the results negatively, especially in the Electrical business area.

 

Parent company operating income was on NOK 7.8 million in 2021 with and profit before tax on NOK -3.4 million

 

The cash flow analysis for 2021 target that the group at the end of the year of the period had a cash balance of on NOK 187.2 million. This is is 252.7 million less than in 2020

 

Net cash flow from operating activities in 2021 is on NOK 37.3 million. Net Cash flow from investing activities is NOK -20.9 million

 

The Group's short-term debt is reduced by NOK 466.5 million from 2020, and long-term debt is reduced by NOK 68.9 million compared with the previous year. By output of 2021 is short term debt on 1,118.7 MNOK, human Non-current liabilities amount to NOK 161.0 million

 

Total assets at the output of the year was NOK 1,715.7 million, a reduction of on NOK 298.4 million from last year

 

The Group's equity at 31 December year-end NOK 424.5 million, an increase of on 237 million in relationship to 2020. The Group is i 2021 infused 200 million kroner in new equity. The equity ratio for the Group is at the output of 2021 on 24,7 %, an increase on 15,4 % from last year

 

The assumptions about continued drift is laid to reason for the presentation of the company accounts and consolidated financial statements, and Handlebar confirms that this prerequisite is present. In the opinion of the Board of Directors gear presented income statement and balance sheet with accompanying notes satisfactory information about the company's and the group's operations and financial position at 31 December 2021. Relationships pus The balance sheet date is commented on in a separate section

Financial risk

Overview of objectives and strategy

The Group's current strategy does not include use of financial instruments, but debt is subject to ongoing assessment.

Market risk

The Group is exposed to changes in interest rates, as the company's debt has floating rate. Furthermore, changes in interest rates may affect investment opportunities in future periods. The Group is not deferred for significant currency risk, but has both income and expenses in Swedish krona through our operations in Sweden.

Credit risk

The risk of loss on receivables are assessed as low. Historically, the Group has not hat significant losses on receivables. The most significant loss provisions that have been recognised the two recent years is tied to two projects within Business Area Electrical, and is thus not linked to credit risk. Outstanding trade receivables and earned, unbilled revenue, constitutes by at the end of last year 953 MNOK.

Liquidity risk

The company assesses liquidity in the Group as satisfactory. As at 31 December. the company has a total of NOK 187.2 million in bank deposits (including tax deductions), and no features on overdraft facility. The overdraft facility in the Group has a frame on NOK 420 million, and companies in the Group are jointly and severally liable for on this one. After the board's view has the company a healthy financial position and will be able to deal with any unforeseen changes, and further growth.

Working environment and gender equality

Board of directors consider the working environment in the parent company and the Group as good. In the autumn 2021 conducted a group-wide employee survey as target hay well-being, high trust between management and employees and low turnover intention.

 

The has been 60 injuries with absence out above the claims date in 2021. The Most of the damages has had injury absence during 3 days. Fall in rough terrain is the biggest cause to injury absence, together with minor cuts and crush injuries. It is established and Group-wide HSE network as among other things, propose measures for å reduce the number of injuries. In addition, we is injuries, adverse events and near misses are regular agenda items in AMU in the respective business areas

 

Sickness absence for the Group is in 2021 on 5.0 % of which short-term absence accounts for 2.4%. Sickness absence is slightly below the industry average.

 

Female share overall i The Group is 9 %. It is 13 % female leaders who has human resources and performance accountability. At the end of the year, the executive management team (corporate staff + managers of the business areas) consisted of 2021 of 1 woman and 12 men. Executive Board consists of of 5 men

 

The is a low level of part-time work in OneCo. By the output of the year it was 16 women and 44 men men who worked in reduced positions. Part-time work is implemented by initiative and wish from the employees and in consultation with the manager. There is occasionally a need for a reduced position in connection with with Illness as part of temporary organisational measures. Job reductions have also been carried out to a very limited extent as an alternative to dismissal in downsizing processes. Part-time work is not regarded as and problems in the group

 

OneCo makes little use of temporary positions and at the end of the year is less than 2 % of our employees in temporary employment relationships. Temporary positions are used, for example, in connection with with special hay workloads or when holidays are taken for mainly administrative positions, and the school pupils or students are often used in this work

 

At the end of the year, the Group had 2,840 employees, of which 257 women. Increased proportion of women among our employees will contribute positively to the working environment, results and quality on our deliveries. A better gender balance will contribute to a stronger reputation and increased attractiveness as employer at both genders. Our spring experience is that both genders master the profession equally well and OneCo wants å contribute to make the industry visible as a attractive industry for both genders

 

The equal pay overview shows that women in average earns 89 % of men. The lowest pay gap is in operational positions. Please refer to the Group's equal pay report for more details, and this is available on www.oneco.no

Discrimination

OneCo distances itself from any form of discrimination whether it is on reason by gender, age, race, religion or other relationship. OneCo works actively for an inclusive and health-promoting working life where none of our employees - or others who perform work for OneCo - should experience harassment, bullying or negative attention. I our employee survey states 2 % of our employees that they have experienced bullying or harassment in the last three months, against 5% in working life in general. Measures have been implemented locally

 

A large volume of our positions require a good physique and a strong body in order to clear everyday work tasks such as heavy lifting and demanding working positions over time. I addition it is decisive with god hearing and good vision for to avoid dangerous situations at the construction site. Debt affects our possibility to employ people with disabilities in operational positions. In mercantile positions, this will be easier to get to and we organise as far as it is possible for persons who temporary or permanent has disability due to illness or damage


Gender balance in OneCo is highly skewed and debt is in itself a risk of discrimination. We has therefore full in group companies CPI about increased number of female employees, both through new recruitment and through reduced staff turnover among women. This together with a number of other measures that will be implemented in 2022, assume we want to reduce the risk of discrimination based on gender.

 

It is not recognised statistics over ethnicity in OneCo and quantity people of other national origins can therefore cannot be quantified, but the proportion of employees of other nationalities assumed reflect the level of the population as a whole - or slightly higher

 

Reference is also made to the Group's report about diversityequality and discrimination that are available on www.oneco.no.

External environment

Our CO2 emissions for 2021 are on 11,537 tonnes, a decrease on 9 % from 2020 as a baseline in our climate accounts. Emissions from our fossil-fuelled vans account for the majority of our greenhouse gas emissions. Switching to electric vans will make a positive contribution to reduced climate footprint, together with others measures that have been - or will be implemented. Through our connection to SBTi and GHG protocol, we have committed us to reduce own greenhouse gas emissions with 50% inside 2030. We are confident that we will reach this goal in good time before 2030. A complete overview of our work with sustainability, including reduction of greenhouse gas emissions, can be found in our sustainability report that is available on www.oneco.no.

Insurance for board members and the CEO

Board and management liability insurance has been taken out i the parent company, OC Industrier AS, which covers all subsidiaries. The insurance is on market terms. The insurance covers the insured party's liability for property damage, including personal liability for the Group's debt, due to requirements put forward against insured as a result of a liability-related action or omission in the hedged party's capacity as general manager, board member, member of management, "the de facto director>>, <<shadow director" or employed in the group that may be incurred an independent management responsibility.

Future development

With regard to the Group's future development, the business will depend, among other things, on macroeconomic conditions. On at the time of the presentation of the Group's financial statements is both Norwegian and Swedish economy embossed of high levels of sick leave as a result of the corona pandemic, and the is according to the authorities uncertain when this will be reduced. Demand for increased purchasing power in wage settlements, and the war in Ukraine, gear also some uncertainty linked to the outlook for 2022.

 

OneCo is through its business well positioned within areas that are positively affected by the green shift and increased digitalisation in society. A big part of the Group's operations are related to infrastructure as handles as critical to society within electrical, electric power, transport and telecommunications. For Electrical business areas, Infra and Technologies experience the situation in 2022 in terms of market development and order intake better than at the beginning of 2021. For the business area Telecoms a decline in the total market is expected i 2022. OneCo is well positioned within the various market segments (fixed and mobile), and the decline for OneCo is therefore expected to continue. be lower than for the total market. For the business areas Sweden and Marine and Offshore, sales are expected to be å be approximately on the same level as in 2021.

 

I 2021 it became implemented more initiative for å improve the profitability of the Group, including revising the strategies for the business areas and for the Group as as a whole. The Board therefore expects increased earnings i 2022 As a result of of the measures that have been implemented within of different business areas. The board will emphasise that there will always be uncertainty related to to expectations to future developmentbut that the expectations of 2022 is characterised of optimism.

Events after the balance sheet date

No circumstances have arisen after the end of the financial year which, in the opinion of the view are of significance when assessing the financial statements. Nor are the Board of Directors aware of any other matters that are important for assessing the company's financial position and results that are not disclosed in the financial statements. of income statement, the balance sheet, the cash flow statement and Notes.