XANO Industri : 2022

Focus for the year

Various forms of collaboration are still our focus, and a precondition for successful sustainability work. We are able to generate motivation and assume joint responsibility for leading development that is sustainable in the long term - between employees, in our relations with customers and suppliers, and in dialogues with investors and authorities.

From a tangible perspective, we have worked at Group level to formulate a new sustainability strategy that will be implemented in the Group during 2023. This strategy encompasses new and ambitious objectives. We have identified a number of areas in which, in the near future, we will be implementing activities aimed at achieving significant improvements. In this way, our aim is to generate a clear shift in our vision in order, within our field of expertise, to be a leading player and business partner that facilitates the transition to a more sustainable society and business dealings.

Activities and impact

Internally, XANO Academy is an important part of the work regarding network building, innovation and coordination in various projects. Our ambition is to involve and train more employees in areas such as environmental awareness, social responsibility and ethical business skills. In this respect, our Academy is one of the tools we use to establish our strategy throughout the Group and to make progress in our sustainability work.

For our Group companies, the potential to make a real difference lies in part in their ability to improve the sustainability performance of their customers. By means of long-term collaboration, we are able to build trust and contribute with knowledge regarding the choice of materials, product design and manufacturing methods to minimise environmental and health risks. We are investing in projects and capacity that will enable our operations to promote sustainable social development.

Our plastic-processing companies have made further strides in respect of the recycling and reuse of materials. Working both in-house and in collaboration with partners, they deal with waste material and products at the end of their useful lives. These materials can be used again thanks to new recycling methods that guarantee high levels of quality.

In Vadstena, Fredriksons has invested in buildings, machinery and a completely new production line that is directly linked to a customer working with climate-smart energy storage. This is a shared, long-term investment in which both parties can see good development oppor- tunities, at the same time as being able to satisfy a growing need in society.

Challenges and opportunities

The financial results from the year's activities did not meet our own expectations. We were increasingly affected by the lingering effects of the Coronavirus pandemic and the consequences of the war

in Ukraine. This resulted in us needing to review our utilisation of resources and adapt our operations according to the new conditions.

We have tightened our belts, but are continuing with our aggressive measures in relation to sales and product development. In order to generate sustainable business dealings, we are extending our customer collaborations, establishing operations within new business areas and exploring new geographic markets. As a result, we are increasing our opportunities to contribute towards positive social development, while at the same time creating the conditions for profitable growth.

An eventful year to come

We are looking forward to an eventful year, with various activities linked to the implementation of our new sustainability strategy. We are introducing a new, Group-wide platform for reporting and following up our key performance indicators, which will streamline our work and provide better support in proactive operations. We will be extending our environment-related data collection activities to cover a broader range of indirect climate emissions, primarily in relation to material consumption and waste. More in-depth risk assessment and following- up in the supplier chain constitutes another highly prioritised area.

Group structure

XANO Industri AB is the parent company of the XANO Group, and since 1988 has been a public company whose shares are listed on Nasdaq Stockholm in the Mid Cap segment. The Group's ultimate parent company is Viem Invest AB. The business has its origins in an electronics company that was founded in Jönköping in 1937. The current Group model was established at the start of the 1980s by the entrepreneur Tord Johansson.

The XANO Group's primary operations are conducted in 24 engineering companies that offer manufacturing and development services

for industrial products and automation equipment. The Group is represented in the Nordic region, Estonia, the Netherlands, Poland, China and the USA. The operations are divided up into the Industrial Products, Industrial Solutions and Precision Technology business units.

Investments for the future

Fredriksons has made extensive investments in factory space and production equipment linked directly to a customer that works with the storage of energy from renewable sources. New technology and the experiences gained from this project are developing Fredriksons' own operation and can be applied in future assign- ments.

Read more on page 16.

Plastic and care for the environment

The Group's plastic-processing companies have a strong sustainability profile. They optimise their manufacturing to achieve reduced material consumption and higher energy efficiency, and develop sustainable products for areas such as water treatment. Sustainable chains for the recycling of materials are established both in-house and together with partners.

Read more on page 18.

Future employees

Resinit has an active collaboration with Teknikcollege for long-term skills provision and quality assurance of niche technical expertise. Teknikcollege is a collaboration between companies, local authorities and training coordinators that is intended to improve the status and quality of training courses that are relevant for industry.

Read more on page 23.

Development and network building

During 2022, five development programmes with a total of 72 participants have been completed within the framework of XANO Academy. A further programme has been launched. XANO Academy is an important arena for the implementation of XANO's core values. The development programmes are intended to create networks for communication and the exchange of knowledge.

Read more on page 26.