(AOF) – Exail Technologies achieved a particularly high turnover in the last quarter of 2022, of 88 million euros. The excellent level of activity is explained by the favorable seasonality of the fourth quarter (the most important of the year) and the strong performance of sales of navigation and positioning systems. These products, which have a relatively short sales cycle, quickly benefited from the buoyant environment of the Defense market for naval and land equipment.
Pro forma 2022 revenue, including iXblue over the full year, amounts to €280 million, illustrating Exail’s change in size.
The volume of orders recorded in the fourth quarter is a significant success for the end of 2022. It illustrates the momentum to which the group is committed with order intake growing faster than revenue. Exail Technologies thus won 104 million euros in orders in the fourth quarter of 2022, an increase of around +40% compared to the order volume in the same period last year on a like-for-like basis.
Business was driven in particular by numerous orders for positioning and navigation systems, for nearly 50 million euros.
On the outlook side, Exail Technologies has set itself a revenue growth target of more than +15% in 2023 compared to 2022 pro forma revenues. This objective is supported by the favorable context of the group’s activities, consolidating both the revenue development trajectory and the maintenance of a good level of profitability.
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Negotiations with builders
On average, equipment manufacturers represent between 60 and 85% of the manufacturing cost of a vehicle. According to the Federation of Vehicle Equipment Industries (Fiev), negotiations are very tense with manufacturers regarding the passing on of increased costs. The price increases concern both electronic components, raw materials, such as steel, nickel, lithium or palladium, energy and transport. Equipment manufacturers mainly negotiate with Stellantis and Renault to set up indices to pass on increases. They are also betting on innovation, differentiation, upgrading and internationalization.
Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.
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German autonomy not so simple
China has been Germany’s leading economic partner for six years. However, across the Rhine, companies are called upon to reduce their heavy dependence on the Asian giant due to a rise in geopolitical tensions with the country. In this context, the powerful VDMA points out the importance of the Chinese market and the danger that a too sudden termination of ties with China would represent. The country is, in fact, the second largest export market and the first investment destination for German mechanical and industrial engineering. The federation nevertheless recognizes the need to diversify the trading partners of the German economy.