Year-End Report October - December 2021

October - December 2021
- Net Sales MSEK 172.5 (134.3)
- Order intake MSEK 195.4 (120.5)
- Operating profit (EBIT) MSEK 27.2 (12.5)
- Operating profit (EBITDA) MSEK 37.5 (23.3)
- Total Comprehensive income MSEK 21.3 (-8.0)
- Earnings per share, before and after dilution (SEK) 0.02 (0.01)
- Cash flow from operating activities MSEK 11.3 (-7.0)

January - December 2021
- Net Sales MSEK 506.8 (454.9)
- Order intake MSEK 368.2 (788.4)
- Operating profit (EBIT) MSEK 45.9 (10.8)
- Operating profit (EBITDA) MSEK 83.5 (59.4)
- Total Comprehensive income MSEK 45.5 (-15.7)
- Earnings per share, before and after dilution (SEK) 0.04 (0.01)
- Cash flow from operating activities MSEK 9.1 (15.5)

Comments from the CEO
Continued strong profitable growth, with 22% EBITDA margin
After a strong Q3, I am proud to announce that the entire team at Sensys Gatso delivered an even better result in the fourth quarter. The EBITDA arrived at SEK 38 million, 61% higher than last year. Our EBITDA margin arrived at 22% of Net Sales, 7 percentage points ahead of our long term target of 15%. The main reason for the strong performance this quarter is an increase in the gross margin of 42% compared to 37% a year ago. This in turn relates to the increased sales of our recurring TRaaS business. On top came the outstanding uptime performance of more than 99% of our Dutch TRaaS business, which resulted in a customer bonus payout in this quarter. For the full year the EBITDA arrived at SEK 84 million, 41% higher than in 2020 and 16% of Net Sales. The Operating profit EBIT landed for the full year at SEK 46 million, four times higher than last year. All in all a steady profit improvement throughout  the year and proof of the effectiveness of our strategic focus on the profitable recurring TRaaS business.

Proven TRaaS business model pushes growth
We also had a strong sales performance in the fourth quarter with SEK 173 million, 28% higher than last year. An important contributor has been Saudi Arabia of which we have delivered an additional 15% in the quarter. To date we have delivered  in total 55% of the contract. The remaining SEK 124 million of the contract is expected to be delivered throughout 2022.

For the full year, our total Sales grew 11% to SEK 507 million. The strategic recurring TRaaS business demonstrated higher growth levels with 28% in the quarter and 14% growth for the full year. In the USA we added three new contracts in 2021 and to date in 2022 another three. This  demonstrates the anticipated interest from cities to implement Automated Traffic Enforcement. 

Software and data enable further US Growth
Our installed base in the USA generated more than 540 million data points of cars passing by our cameras in the last three years. This vast amount of anonymous data points, combined with data from other sources, generates valuable information for Sensys Gatso and our customers. By using data analytics, we can optimize the locations of our cameras to help reduce traffic incidents with the maximum effect. 

Information from our installed base is also an effective sales enabler to predict the impact of Sensys Gatso's Automated Traffic Enforcement solutions for future customers. Our revised business plan for the US market centers around this proactive sales model. With the recently signed  transportation authorization bill that includes, for the first time ever, explicit federal funding support for speed cameras, we also have positive momentum for Automated Traffic Enforcement in many new states and cities for Sensys Gatso.

Momentum in LATAM
We have recently entered the Colombian market with the Joint Venture between Sensys Gatso and Capatest. Colombia is a full TRaaS market, very similar to how  our business in the USA is operated. The main difference is that contract periods are typically much longer, even up to 25 or 30 years. In the joint venture we combine Sensys Gatso's TRaaS Managed Services Model with local knowledge and experience in Traffic Enforcement. Two existing enforcement contracts currently operated by Capatest, supported with Sensys Gatso solutions, will be added to the Joint Venture once Sensys Gatso Colombia is fully operational, expected by the second half of 2022. The contracts will be operated over the remaining contract period of 17 years.

The Costa Rica national contract has still not started due to budget constraints at our customer. Together with our consortium partners, we have shifted the deployment of our solution in Costa Rica to municipalities. A successful implementation will possibly assist in starting the national project.

Meanwhile we have received our first order from Ecuador, a new market in the LATAM region. The active projects in Colombia, Costa Rica and Ecuador are evidence of the increased momentum we see in the LATAM region. 

Order backlog of SEK 840 million
During the quarter, the order intake arrived at SEK 195 million, 62% higher than last year. This is mainly driven by order intake of our joint venture in Colombia in which we have a controlling interest and where we consolidate the revenue for the remaining 17 years in the contracts. With a full year order intake of SEK 388 million in 2021 and 788 in 2020, we now have a backlog of SEK 840 million to be delivered mainly in 2022.

Supply chain costs stable throughout 2022
At Sensys Gatso we have long lead times for our sales, delivery and operations processes. Critical components are therefore sourced way in advance and have already been secured for 2022. Assembly of our systems takes place in our European factories, where most of the added value for our System Sales is realized. Our System Sales and Managed Services business models are hardly affected by increases in energy costs. Today we expect no delivery issues in our supply chain and our supply chain costs to remain relatively stable throughout 2022.

I am proud of the outstanding result the global Sensys Gatso team has delivered in 2021. In challenging COVID circumstances, with lockdowns in many countries, the team realized an EBITDA of no less than SEK 38 million this quarter, 61% higher than last year and 22% of Net Sales. For the full year we arrived at SEK 84 million EBITDA, 41% higher than last year. This result is driven by the steady growth we see from our higher margin TRaaS business. It proves that our strategic focus on this recurring business segment is paying off.  

Our financial position is solid with more than SEK 100 million cash freely available. Further, we have SEK 161 million of our working capital assets connected to active contracts and deliveries. 

With investments of SEK 39 million in our software platforms and in fixed assets in TRaaS operations in the USA, together with a new data driven sales approach in the USA, we are gearing up for future growth. 

We are ending the year with a backlog of SEK 840 million, most of which will be delivered to our customers in 2022.

Based on this we retain our long-term plan to grow our net sales to more than SEK 1 billion, of which TRaaS revenues will be more than SEK 600 million, in 2025. We also retain our ambition to increase our EBITDA margin to more than 15 percent in 2025.

Ivo Mönnink
CEO, Sensys Gatso Group

Invitation to a presentation
On 23 February at 10 am CET Sensys Gatso Group invites press, analysts, shareholders, and stakeholders to participate in a presentation/audiocast. The company's CEO Ivo Mönnink and CFO Simon Mulder will present the financial results in English. The presentation in connection with this report will be published on the website.

The presentation/audiocast can be joined online or via telephone and will be available on the company's webpage

Link to the presentation/audiocast:

Dial-in number 
Sweden: +46 8 5055 83 53
UK: +44 333 300 92 61
US: +1 646 722 4902 

This information is information that Sensys Gatso Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 on 23 February, 2022.  

For further information please contact:
Ivo Mönnink, CEO
e-mail: [email protected]
e-mail IR: [email protected] 
Telephone: +46 36 34 29 80

Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners. Sensys Gatso Group has subsidiaries in Australia, Costa Rica, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates and has 252 employees. The Sensys Gatso Group's shares are listed on Nasdaq Stockholm. 

For further information, visit 

Om Sensys Gatso Group

Sensys utvecklar, producerar och marknadsför system för trafiksäkerhet och trafikinformatik, däribland system för hastighets- och rödljusövervakning.

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Marknad Stockholmsbörsen Kortnamn SGG ISIN-kod SE0020356244