Quarterly Report • Sep 30, 2018
Quarterly Report
Open in ViewerOpens in native device viewer
The global leader in door opening solutions
Operating income
+11%
| Third quarter | January-September | |||||
|---|---|---|---|---|---|---|
| 2017 | 2018 | Δ | 2017 | 2018 | Δ | |
| Sales, SEK M | 18,499 | 21,191 | 15% | 56,028 | 60,881 | 9% |
| Of which: | ||||||
| Organic growth | 590 | 960 | 5% | 1,956 | 2,620 | 5% |
| Acquisitions and divestments | 373 | 446 | 2% | 1,273 | 1,079 | 2% |
| Exchange-rate effects | –488 | 1,286 | 8% | 990 | 1,154 | 2% |
| Operating income (EBIT) 1), SEK M | 3,080 | 3,424 | 11% | 8,982 | 9,164 | 2% |
| Operating margin (EBITA) 1), % | 16.9% | 16.6% | 16.3% | 15.5% | ||
| Operating margin (EBIT) 1), % | 16.7% | 16.2% | 16.0% | 15.1% | ||
| Income before tax 1), SEK M | 2,910 | 3,221 | 11% | 8,447 | 8,595 | 2% |
| Net income 1), SEK M | 2,153 | 2,384 | 11% | 6,250 | 6,396 | 2% |
| Operating cash flow, SEK M | 2,654 | 3,004 | 13% | 6,053 | 6,435 | 6% |
| Earnings per share 1), SEK | 1.94 | 2.15 | 11% | 5.63 | 5.76 | 2% |
1) Excluding impairment of goodwill and other intangible assets of SEK -5,595 M in the second quarter of 2018. The effect on net income from the impairment of intangible assets was SEK –5,268 M.
The third quarter continued with strong organic growth of 5%. Organic growth was very strong in Global Technologies (12%) and Americas (10%) and continued to be good in Entrance Systems (4%), while EMEA and Asia Pacific reported stable organic sales growth of 2% and 1% respectively.
Accelerated growth in Global Technologies and continued strong growth in Americas The demand for our products continued to grow at a good level in most of our markets during the third quarter and in the Global Technologies and Americas divisions in particular. Following a strong start to the year for Global Technologies, the growth accelerated during the third quarter.
During the last five years ASSA ABLOY Hospitality's performance has been very impressive, with innovative new solutions, combined with a solid financial development. The business has expanded from offering solutions for hotels and marine cruise ships into solutions for other verticals such as elderly care, student accommodation and logistics. As a result of this transformation, the Hospitality organization will now evolve under a new name, ASSA ABLOY Global Solutions, where we will develop the existing business and look for new opportunities to build global solutions for our customers.
HID Global is also developing positively. Two years ago ASSA ABLOY set a target to double HID's revenue in five years' time through organic sales and acquisitions. With the recent announcement of the acquisition of Crossmatch, we are on track to reach this target. Crossmatch allows us to offer biometric identity in critical applications and complements our total offering.
In Americas the growth was mainly driven by the development in the US. It is very encouraging that both the commercial and residential markets grew well during the quarter. In both segments our electromechanical products are market leaders and we note a strong demand for our innovative new solutions.
The third quarter's operating income improved strongly by 11% year-on-year to SEK 3,424 M, corresponding to an operating margin of 16.2%. Due to higher raw material costs and negative currency effects the margin declined compared to last year, but we continue to work hard on further offsetting these material price increases.
Operating cash flow was strong in the third quarter and increased by 13% to SEK 3,004 M.
Last but not least, we have recently announced that Erik Pieder has been appointed as Chief Financial Officer. He will join ASSA ABLOY in January 2019. I would like to thank Carolina Dybeck Happe for her invaluable contribution to ASSA ABLOY over the last 16 years and wish her great success in her new position.
Stockholm, 19 October 2018
Nico Delvaux President and CEO
Sales by quarter and last 12 months
Sales, 12 months
The Group's sales increased by 15% to SEK 21,191 M (18,499). Organic growth amounted to 5% (3). Acquisitions and disposals were 2% (2), of which 4% (3) were acquisitions and –2% (–1) were disposals. Exchange-rates affected sales by 8% (–2).
The Group's operating income, EBIT amounted to SEK 3,424 M (3,080) an increase of 11%. The operating margin was 16.2% (16.7). Operating income before amortizations from acquisitions, EBITA, amounted to SEK 3,516 M (3,132). The corresponding EBITA margin was 16.6% (16.9).
Net financial items amounted to SEK –203 M (–171). The Group's income before tax was SEK 3,221 M (2,910), an increase of 11% compared with last year. The corresponding profit margin was 15.2% (15.7). Exchange-rates had an impact of SEK 166 M (–74) on income before tax.
The estimated effective tax rate, excluding impairment of goodwill, was 26% (26) on an annual basis. Earnings per share amounted to SEK 2.15 (1.94), an increase of 11% compared to last year.
The Group's sales for the first nine months of 2018 totaled SEK 60,881 M (56,028), representing an increase of 9%. Organic growth was 5% (4). Acquisitions and disposals were 2% (2), of which 4% (3) were acquisitions and –2% (–1) were disposals. Exchange-rate effects affected sales by 2% (2).
The Group's operating income, EBIT excluding impairment of intangible assets amounted to SEK 9,164 M (8,982), an increase of 2% compared with last year. The operating margin was 15.1% (16.0). Operating income before amortizations from acquisitions, EBITA, excluding impairment of intangible assets, amounted to SEK 9,444 M (9,139). The corresponding EBITA margin was 15.5% (16.3).
Earnings per share excluding impairment of intangible assets amounted to SEK 5.76 (5.63), an increase of 2% compared with last year. Operating cash flow totaled SEK 6,435 M (6,053).
Payments related to all restructuring programs amounted to SEK 103 M (106) in the quarter. The restructuring programs proceeded according to plan and led to a reduction in personnel of 165 people during the quarter and 14,400 people since the projects began in 2006. At the end of the quarter provisions of SEK 507 M remained in the balance sheet for carrying out the programs.
The planning of a new restructuring program continues. The launch is scheduled for the fourth quarter and the program is expected to take place over a period of three years. The total estimated cost of the restructuring program is in line with previous programs, with an expected payback time of around three years. The restructuring cost will be expensed over two years.
Erik Pieder has been appointed Chief Financial Officer (CFO) and Executive Vice President of ASSA ABLOY effective January 14, 2019. He succeeds Carolina Dybeck Happe who will take up a new position outside the company. Erik is currently Vice President Business Control at Atlas Copco Compressor Technique and has previously held various management positions in the Atlas Copco Group.
Sales for the quarter in EMEA division totaled SEK 4,872 M (4,278), with organic sales growth of 2% (4). Growth was strong in Finland and Scandinavia and good in Germany, Eastern Europe and South Europe. Sales in the UK and France were stable while Benelux and Africa & Middle East had negative sales growth. Electromechanical products continued to show strong growth. Acquired growth net was 5%. Operating income totaled SEK 774 M (717), which represents an operating margin (EBIT) of 15.9% (16.8). Return on capital employed amounted to 17.4% (19.2). Operating cash flow before interest paid totaled SEK 627 M (640).
Sales for the quarter in Americas division totaled SEK 5,211 M (4,426), with organic sales growth of 10% (3). The growth was very strong in the US Residential market and for Electromechanical & High-security products while Canada, Brazil and the US markets for Perimeter Protection, Architectural Hardware and Security doors all showed strong growth. Growth in Mexico was good, but was negative in Colombia. The demand for electromechanical products in the USA continued to be very strong. Acquired growth net was 0%. Operating income totaled SEK 1,046 M (966), which represents an operating margin (EBIT) of 20.1% (21.8). Return on capital employed amounted to 23.8% (25.9). Operating cash flow before interest paid totaled SEK 1,203 M (1,046).
Sales for the quarter in Asia Pacific division totaled SEK 2,627 M (2,448), with organic sales growth of 1% (2). Growth was strong in South Korea and Japan and stable in Pacific and South Asia. In China sales of both lock products and security doors declined. The implementation of a new strategy and new organization is ongoing in China. Electromechanical locks continued to grow strongly. Acquired growth was 0%. Operating income totaled SEK 242 M (277), which represents an operating margin (EBIT) of 9.2% (11.3). Return on capital employed amounted to 12.3% (9.3). Operating cash flow before interest paid totaled SEK 120 M (155).
Sales for the quarter in Global Technologies division totaled SEK 3,001 M (2,417), with organic sales growth of 12% (6). The growth was driven by very strong development in Extended Access, Identification Technology, Identity & Access Solutions, Citizen ID and Physical Access Control, but growth for Secure Issuance was negative. ASSA ABLOY Global Solutions also grew very strongly. Acquired growth net was 4%. Operating income totaled SEK 641 M (431), which represents an operating margin (EBIT) of 21.4% (17.8). Return on capital employed amounted to 14.4% (14.6). Operating cash flow before interest paid totaled SEK 674 M (373).
Sales for the quarter in Entrance Systems division totaled SEK 5,909 M (5,242), with organic growth of 4% (2). US Residential Doors grew strongly and Industrial Doors had good growth. Sales for Pedestrian Doors and Door Components were stable, while High Performance Doors and Residential Doors in Europe had a negative development. Acquired growth was 1%. Operating income totaled SEK 831 M (762), which represents an operating margin (EBIT) of 14.1% (14.5). Return on capital employed amounted to 15.6% (15.7). Operating cash flow before interest paid totaled SEK 593 M (593).
A total of five acquisitions were consolidated during the quarter. The combined acquisition price for the companies acquired during the year, including adjustments from prior-year acquisitions, amounted to SEK 4,765 M. The acquisition price for these companies on a cash and debt free basis amounted to SEK 5,306 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amount to SEK 4,241 M. Estimated deferred considerations amounted to SEK 764 M.
On September 24 it was announced that ASSA ABLOY had acquired Crossmatch, a leader in biometric identity management and secure authentication solutions. The company has about 270 employees and its sales in 2018 are expected to amount to SEK 1,150 M.
Reduced energy consumption in the Group's factories and sales companies is a priority area for achieving a reduced environmental impact and lower costs. The improvement project is driven locally in the Group's units, often with support from Kaizen methodology to identify and prioritize different activities.
To further drive improvements, EMEA has certified three major production plants to the International Standard for Energy Management Systems, ISO 50001:2011. The Standard specifies the requirements for maintaining and improving an energy management system. The Standard will enable the plants to follow a systematic approach in achieving continual improvements in energy performance, efficiency and cost. Two of the plants are located in Germany and one in France. The plants have energy-intensive production processes involving for instance machining and die-casting. The three plants account for approximately 3% of the Group's total energy consumption.
The Group's ambition is to improve its energy efficiency by 20% between 2015 and 2020. At the end of 2017 the like-for-like energy consumption had been reduced by 17% compared to 2015. Further improvements are expected during the coming years.
Other operating income for the Parent company ASSA ABLOY AB totaled SEK 2,965 M (2,620) for the first nine months of the year. Operating income for the same period amounted to SEK 829 M (940). Investments in tangible and intangible assets totaled SEK 21 M (14). Liquidity is good and the equity ratio is 38.2% (42.5).
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the latest Annual Report have been applied, with the exception of new and changed Standards and interpretations that came into force on 1 January 2018 and are described briefly on page 18. This Report was prepared in accordance with IAS 34 'Interim Financial Reporting' and the Annual Accounts Act. The Interim Report for the Parent company was prepared in accordance with the Annual Accounts Act and RFR 2 'Reporting by a Legal Entity'.
ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules that the company uses – so-called 'alternative performance measures'. For definitions of financial performance measures, refer to Page 19 of this Report and to the company's latest Annual Report. To check how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2017 appear on the company's website www.assaabloy.com.
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise.
No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties.
As an international Group with a wide geographic spread, ASSA ABLOY is exposed to a number of business, financial and tax-related risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity, the giving of credit, raw materials and financial instruments. Risk management in ASSA ABLOY aims to identify, control and reduce risks. This work begins with an assessment of the probability of risks occurring and their potential effect on the Group. For a more detailed description of particular risks and risk management, see the 2017 Annual Report.
The Company's Auditors have not carried out any review of this Report for the third quarter of 2018.
Stockholm, 19 October 2018
Nico Delvaux President and CEO
The Year-end Report and Quarterly Report for the fourth quarter will be published on 5 February 2019.
A capital markets day will be held on 14 November 2018 in Stockholm, Sweden.
Nico Delvaux, President and CEO, Tel: +46 8 506 485 82
Carolina Dybeck Happe, Chief Financial Officer, Tel: +46 8 506 485 72
ASSA ABLOY is holding a telephone and web conference at 10.00 today which can be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on: +46 8–566 193 53, +44 203 008 9806 or +1 855 831 5945
This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on 19 October 2018.
ASSA ABLOY AB (publ) Box 703 40 107 23 Stockholm Visiting address Klarabergsviadukten 90, Stockholm, Sweden Tel +46 (0)8 506 485 00 Fax +46 (0)8 506 485 85 www.assaabloy.com Corporate identity number: 556059-3575 No. 22/2018
| CONSOLIDATED INCOME STATEMENT | Q3 | Q1-Q3 | ||
|---|---|---|---|---|
| SEK M | 2017 | 2018 | 2017 | 2018 |
| Sales | 18,499 | 21,191 | 56,028 | 60,881 |
| Cost of goods sold | -11,206 | -12,799 | -33,964 | -36,773 |
| Gross income | 7,293 | 8,392 | 22,064 | 24,108 |
| Selling, administrative and R&D costs | -4,243 | -5,006 | -13,169 | -15,077 |
| Impairment of goodwill and other intangible assets | - | - | - | -5,595 |
| Share of earnings in associates | 30 | 38 | 86 | 132 |
| Operating income | 3,080 | 3,424 | 8,982 | 3,569 |
| -171 | -203 | -535 | -569 | |
| Finance net Income before tax |
2,910 | 3,221 | 8,447 | 3,000 |
| Tax on income | -757 | -838 | -2,196 | -1,872 |
| Net income for the period | 2,153 | 2,384 | 6,250 | 1,128 |
| Net income for the period attributable to: | ||||
| Parent company's shareholders | 2,153 | 2,384 | 6,249 | 1,126 |
| Non-controlling interests | 1 | 0 | 1 | 2 |
| Earnings per share | ||||
| Before and after dilution, SEK | 1.94 | 2.15 | 5.63 | 1.01 |
| Before and after dilution and excluding items affecting comparability, SEK | 1.94 | 2.15 | 5.63 | 5.76 |
| STATEMENT OF COMPREHENSIVE INCOME | Q3 | Q1-Q3 | ||
| SEK M | 2017 | 2018 | 2017 | 2018 |
| Net income for the period | 2,153 | 2,384 | 6,250 | 1,128 |
| Other comprehensive income: | ||||
| Items that will not be reclassified to profit or loss | ||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | 34 | -5 | -10 | 6 |
| Total | 34 | -5 | -10 | 6 |
| Items that may be reclassified subsequently to profit or loss | ||||
| Share of other comprehensive income of associates | -78 | -40 | -8 | 66 |
| Cashflow hedges and net investment hedges | 6 -1,206 |
21 -595 |
-31 -2,753 |
-8 1,883 |
| Exchange rate differences | -1,278 | -614 | -2,791 | 1,941 |
| Total | ||||
| Total comprehensive income for the period | 909 | 1,764 | 3,449 | 3,075 |
| Total comprehensive income for the period attributable to: | ||||
| Parent company's shareholders | 909 | 1,764 | 3,448 | 3,073 |
| Non-controlling interests | 1 | 0 | 1 | 2 |
| CONSOLIDATED BALANCE SHEET | 31 Dec | 30 Sep | |
|---|---|---|---|
| SEK M | 2017 | 2017 | 2018 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 61,409 | 55,764 | 62,831 |
| Property, plant and equipment | 8,065 | 7,841 | 8,389 |
| Investments in associates | 2,243 | 2,147 | 2,383 |
| Other financial assets | 227 | 255 | 148 |
| Deferred tax assets | 1,355 | 1,651 | 1,922 |
| Total non-current assets | 73,299 | 67,658 | 75,674 |
| Current assets | |||
| Inventories | 9,430 | 9,593 | 11,601 |
| Trade receivables | 13,068 | 12,695 | 14,613 |
| Other current receivables and investments | 3,188 | 3,746 | 4,149 |
| Cash and cash equivalents | 459 | 440 | 559 |
| Total current assets | 26,145 | 26,473 | 30,922 |
| TOTAL ASSETS | 99,444 | 94,131 | 106,596 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to Parent company's shareholders | 50,648 | 47,292 | 50,030 |
| Non-controlling interests | 9 | 5 | 11 |
| Total equity | 50,657 | 47,297 | 50,040 |
| Non-current liabilities | |||
| Long-term loans | 16,859 | 16,728 | 19,067 |
| Deferred tax liabilities | 2,218 | 2,179 | 2,267 |
| Other non-current liabilities and provisions | 5,217 | 4,467 | 5,519 |
| Total non-current liabilities | 24,293 | 23,374 | 26,852 |
| Current liabilities | |||
| Short-term loans | 6,151 | 6,200 | 10,164 |
| Trade payables | 7,811 | 6,374 | 7,704 |
| Other current liabilities and provisions | 10,531 | 10,886 | 11,836 |
| Total current liabilities | 24,494 | 23,460 | 29,703 |
| TOTAL EQUITY AND LIABILITIES | 99,444 | 94,131 | 106,596 |
| Parent | Non | ||
|---|---|---|---|
| company's | controlling | Total | |
| SEK M | shareholders | interests | equity |
| Opening balance 1 January 2017 | 47,220 | 5 | 47,224 |
| Net income for the period | 6,249 | 1 | 6,250 |
| Other comprehensive income | -2,801 | 0 | -2,801 |
| Total comprehensive income | 3,448 | 1 | 3,449 |
| Dividend | -3,332 | - | -3,332 |
| Stock purchase plans | -44 | - | -44 |
| Total transactions with shareholders | -3,376 | - | -3,376 |
| Closing balance 30 September 2017 | 47,292 | 5 | 47,297 |
| Opening balance 1 January 2018 | 50,648 | 9 | 50,657 |
|---|---|---|---|
| Net income for the period | 1,126 | 2 | 1,128 |
| Other comprehensive income | 1,947 | 0 | 1,947 |
| Total comprehensive income | 3,073 | 2 | 3,075 |
| Dividend | -3,666 | - | -3,666 |
| Stock purchase plans | -26 | - | -26 |
| Total transactions with shareholders | -3,692 | - | -3,692 |
| Closing balance 30 September 2018 | 50,030 | 11 | 50,040 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | Q3 | Q1-Q3 | |||
|---|---|---|---|---|---|
| SEK M | 2017 | 2018 | 2017 | 2018 | |
| OPERATING ACTIVITIES | |||||
| Operating income | 3,080 | 3,424 | 8,982 | 3,569 | |
| Depreciation and amortization | 407 | 488 | 1,258 | 1,452 | |
| Impairment of goodwill and other intangible assets | - | - | - | 5,595 | |
| Restructuring payments | -106 | -103 | -326 | -442 | |
| Other non-cash items | 11 | -78 | 4 | -234 | |
| Cash flow before interest and tax | 3,393 | 3,731 | 9,917 | 9,940 | |
| Interest paid and received | -77 | -105 | -368 | -446 | |
| Tax paid on income | -1,656 | -576 | -3,247 | -2,171 | |
| Cash flow before changes in working capital | 1,660 | 3,049 | 6,303 | 7,323 | |
| Changes in working capital | -319 | -296 | -2,408 | -2,306 | |
| Cash flow from operating activities | 1,340 | 2,753 | 3,894 | 5,017 | |
| INVESTING ACTIVITIES | |||||
| Net investments in intangible assets and property, plant and equipment | -448 | -429 | -1,414 | -1,195 | |
| Investments in subsidiaries | -1,759 | -1,864 | -2,475 | -3,895 | |
| Investments in associates | 0 | - | 0 | 0 | |
| Disposals of subsidiaries | 98 | - | 99 | 382 | |
| Other investments and disposals | 0 | 0 | 0 | 0 | |
| Cash flow from investing activities | -2,109 | -2,292 | -3,789 | -4,708 | |
| FINANCING ACTIVITIES | - | - | -3,332 | -3,666 | |
| Dividends | -96 | -10 | -96 | -229 | |
| Acquisition of non-controlling interests | 472 | -385 | 3,038 | 3,673 | |
| Net cash effect of changes in borrowings | 376 | -394 | -391 | -221 | |
| Cash flow from financing activities | -393 | 67 | -285 | 88 | |
| CASH FLOW FOR THE PERIOD | |||||
| CASH AND CASH EQUIVALENTS | |||||
| Cash and cash equivalents at beginning of period | 844 | 496 | 750 | 459 | |
| Cash flow for the period | -393 | 67 | -285 | 88 | |
| Effect of exchange rate differences | -11 | -4 | -25 | 12 | |
| Cash and cash equivalents at end of period | 440 | 559 | 440 | 559 | |
| KEY RATIOS | Year | Q1-Q3 | |||
| 2017 | 2017 | 2018 | |||
| Return on capital employed, % | 16.6 | 16.4 | 8.3 | ||
| Return on capital employed excluding items affecting comparability, % | 16.6 | 16.4 | 15.4 | ||
| Return on shareholders' equity, % | 17.6 | 17.6 | 6.5 | ||
| Equity ratio, % | 50.9 | 50.2 | 46.9 | ||
| Interest coverage ratio, times | 19.1 | 18.5 | 6.4 | ||
| Total number of shares, thousands | 1,112,576 | 1,112,576 1,112,576 |
Number of shares outstanding, thousands 1,110,776 1,110,776 1,110,776 Weighted average number of outstanding shares before and after dilution, thousands 1,110,776 1,110,776 1,110,776 Average number of employees 47,426 47,393 48,273
| INCOME STATEMENT | Year | Q1-Q3 | |
|---|---|---|---|
| SEK M | 2017 | 2017 | 2018 |
| Operating income | 1,701 | 940 | 829 |
| Income before appropriations and tax | 4,238 | 1,850 | 1,888 |
| Net income for the period | 4,670 | 1,855 | 1,764 |
| BALANCE SHEET | 31 Dec | 30 Sep | ||
|---|---|---|---|---|
| SEK M | 2017 | 2017 | 2018 | |
| Non-current assets | 39,579 | 35,786 | 39,661 | |
| Current assets | 12,740 | 10,545 | 14,224 | |
| Total assets | 52,319 | 46,331 | 53,885 | |
| Equity | 22,494 | 19,669 | 20,567 | |
| Untaxed reserves | 565 | - | 565 | |
| Non-current liabilities | 10,581 | 9,398 | 12,804 | |
| Current liabilities | 18,679 | 17,264 | 19,949 | |
| Total equity and liabilities | 52,319 | 46,331 | 53,885 |
| THE GROUP IN SUMMARY SEK M |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1-Q3 2017 |
Year 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q1-Q3 2018 |
Last 12 months |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 18,142 | 19,387 | 18,499 | 20,109 | 56,028 | 76,137 | 18,550 | 21,140 | 21,191 | 60,881 | 80,990 |
| Organic growth Gross income excluding items |
6% | 2% | 3% | 5% | 4% | 4% | 4% | 5% | 5% | 5% | |
| affecting comparability | 7,190 | 7,581 | 7,293 | 7,924 | 22,064 | 29,988 | 7,372 | 8,345 | 8,392 | 24,108 | 32,032 |
| Gross margin excluding items affecting comparability | 39.6% | 39.1% | 39.4% | 39.4% | 39.4% | 39.4% | 39.7% | 39.5% | 39.6% | 39.6% | 39.6% |
| Operating income before depr. & amort. (EBITDA) | |||||||||||
| excluding items affecting comparability Operating margin (EBITDA) |
3,208 17.7% |
3,543 18.3% |
3,488 18.9% |
3,789 18.8% |
10,239 18.3% |
14,029 18.4% |
3,297 17.8% |
3,407 16.1% |
3,912 18.5% |
10,616 17.4% |
14,406 17.8% |
| Depreciation and amortization excl. amortization | |||||||||||
| attributable to business combinations | -370 | -376 | -355 | -344 | -1,101 | -1,444 | -376 | -400 | -396 | -1,173 | -1,516 |
| Operating income before amortization (EBITA) | |||||||||||
| excluding items affecting comparability | 2,839 | 3,168 | 3,132 | 3,446 | 9,139 | 12,584 | 2,921 | 3,007 | 3,516 | 9,444 | 12,890 |
| Operating margin (EBITA) Amortization attributable to business combinations |
15.6% -52 |
16.3% -54 |
16.9% -52 |
17.1% -87 |
16.3% -157 |
16.5% -244 |
15.7% -92 |
14.2% -97 |
16.6% -91 |
15.5% -280 |
15.9% -367 |
| Operating income (EBIT) | |||||||||||
| excluding items affecting comparability | 2,787 | 3,114 | 3,080 | 3,359 | 8,982 | 12,341 | 2,829 | 2,911 | 3,424 | 9,164 | 12,523 |
| Operating margin (EBIT) | 15.4% | 16.1% | 16.7% | 16.7% | 16.0% | 16.2% | 15.3% | 13.8% | 16.2% | 15.1% | 15.5% |
| Items affecting comparability1) Operating income (EBIT) |
- 2,787 |
- 3,114 |
- 3,080 |
- 3,359 |
- 8,982 |
- 12,341 |
- 2,829 |
-5,595 -2,685 |
- 3,424 |
-5,595 3,569 |
-5,595 6,928 |
| Operating margin (EBIT) | 15.4% | 16.1% | 16.7% | 16.7% | 16.0% | 16.2% | 15.3% | -12.7% | 16.2% | 5.9% | 8.6% |
| Net financial items | -195 | -170 | -171 | -133 | -535 | -668 | -175 | -191 | -203 | -569 | -702 |
| Income before tax (EBT) | 2,593 | 2,944 | 2,910 | 3,226 | 8,447 | 11,673 | 2,654 | -2,876 | 3,221 | 3,000 | 6,226 |
| Profit margin (EBT) | 14.3% | 15.2% | 15.7% | 16.0% | 15.1% | 15.3% | 14.3% | -13.6% | 15.2% | 4.9% | 7.7% |
| Tax on income Net income for the period |
-674 1,918 |
-765 2,179 |
-757 2,153 |
-842 2,385 |
-2,196 6,250 |
-3,038 8,635 |
-690 1,964 |
-344 -3,220 |
-838 2,384 |
-1,872 1,128 |
-2,713 3,513 |
| Net income attributable to: | |||||||||||
| Parent company's shareholders | 1,919 | 2,178 | 2,153 | 2,384 | 6,249 | 8,633 | 1,964 | -3,222 | 2,384 | 1,126 | 3,510 |
| Non-controlling interests | 0 | 1 | 1 | 1 | 1 | 2 | 0 | 2 | 0 | 2 | 2 |
| OPERATING CASH FLOW SEK M |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1-Q3 2017 |
Year 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q1-Q3 2018 |
Last 12 months |
| Operating income (EBIT) | 2,787 | 3,114 | 3,080 | 3,359 | 8,982 | 12,341 | 2,829 | -2,685 | 3,424 | 3,569 | 6,928 |
| Impairment of goodwill and other intangible assets | - | - | - | - | - | - | - | 5,595 | - | 5,595 | 5,595 |
| Depreciation and amortization | 421 | 429 | 407 | 430 | 1,258 | 1,688 | 468 | 497 | 488 | 1,452 | 1,883 |
| Net capital expenditure Change in working capital |
-373 -1,882 |
-593 -207 |
-448 -319 |
-561 2,061 |
-1,414 -2,408 |
-1,975 -347 |
-356 -2,136 |
-411 127 |
-429 -296 |
-1,195 -2,306 |
-1,756 -245 |
| Interest paid and received | -93 | -198 | -77 | -189 | -368 | -557 | -122 | -220 | -105 | -446 | -635 |
| Non-cash items | -36 | 28 | 11 | -224 | 4 | -221 | -107 | -49 | -78 | -234 | -459 |
| Operating cash flow | 824 | 2,575 | 2,654 | 4,876 | 6,053 | 10,929 | 575 | 2,855 | 3,004 | 6,435 | 11,311 |
| Operating Cash flow/Income before tax excluding | |||||||||||
| items affecting comparability1) | 0.32 | 0.87 | 0.91 | 1.51 | 0.72 | 0.94 | 0.22 | 1.05 | 0.93 | 0.75 | 0.96 |
| CHANGE IN NET DEBT | Q1 | Q2 | Q3 | Q4 | Q1-Q3 | Year | Q1 | Q2 | Q3 | Q1-Q3 | |
| SEK M | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | |
| Net debt at beginning of period | 23,127 | 23,339 | 24,970 | 25,180 | 23,127 | 23,127 | 25,275 | 27,219 | 31,454 | 25,275 | |
| Operating cash flow | -824 | -2,575 | -2,654 | -4,876 | -6,053 | -10,929 | -575 | -2,855 | -3,004 | -6,435 | |
| Restructuring payments Tax paid on income |
84 629 |
136 961 |
106 1,656 |
286 -203 |
326 3,247 |
612 3,044 |
173 609 |
166 986 |
103 576 |
442 2,171 |
|
| Acquistions and divestments | 461 | 268 | 1,741 | 4,319 | 2,470 | 6,790 | 986 | 1,097 | 2,610 | 4,693 | |
| Dividend | - | 3,332 | - | - | 3,332 | 3,332 | - | 3,666 | - | 3,666 | |
| Actuarial gain/loss on post-employment benefit obligations | -34 | 99 | -50 | -40 | 14 | -26 | -35 | 20 | -21 | -36 | |
| Exchange rate differences, etc. | -104 | -590 | -590 | 608 | -1,284 | -676 | 787 | 1,157 | -348 | 1,597 | |
| Net debt at end of period Net debt/Equity |
23,339 0.48 |
24,970 0.54 |
25,180 0.53 |
25,275 0.50 |
25,180 0.53 |
25,275 0.50 |
27,219 0.50 |
31,454 0.65 |
31,372 0.63 |
31,372 0.63 |
|
| NET DEBT | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| SEK M | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | ||||
| Non-current interest-bearing receivables | -41 | -39 | -212 | -171 | -113 | -120 | -96 | ||||
| Current interest-bearing investments including derivatives | -113 -697 |
-211 -844 |
-161 -440 |
-150 -459 |
-277 -551 |
-284 -496 |
-211 -559 |
||||
| Cash and cash equivalents Pension provisions |
3,058 | 3,109 | 2,929 | 2,933 | 2,971 | 3,102 | 2,873 | ||||
| Other non-current interest-bearing liabilities | 16,232 | 17,450 | 16,728 | 16,859 | 18,425 | 20,194 | 19,067 | ||||
| Current interest-bearing liabilities including derivatives | 4,901 | 5,505 | 6,336 | 6,263 | 6,763 | 9,059 | 10,297 | ||||
| Total | 23,339 | 24,970 | 25,180 | 25,275 | 27,219 | 31,454 | 31,372 | ||||
| CAPITAL EMPLOYED AND FINANCING SEK M |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
||||
| Capital employed | 72,333 | 71,349 | 72,477 | 75,932 | 81,139 | 79,733 | 81,412 | ||||
| - of which goodwill | 47,438 | 46,252 | 46,573 | 50,330 | 51,956 | 50,590 | 52,169 | ||||
| - of which other intangible assets and | |||||||||||
| property, plant and equipment | 17,595 | 17,309 | 17,032 | 19,144 | 20,019 | 19,011 | 19,052 | ||||
| - of which investments in associates Net debt |
2,176 23,339 |
2,193 24,970 |
2,147 25,180 |
2,243 25,275 |
2,385 27,219 |
2,391 31,454 |
2,383 31,372 |
||||
| Non-controlling interests | 4 | 5 | 5 | 9 | 9 | 11 | 11 | ||||
| Equity attributable to the Parent company´s shareholders | 48,989 | 46,374 | 47,292 | 50,648 | 53,911 | 48,268 | 50,030 | ||||
| DATA PER SHARE | Q1 | Q2 | Q3 | Q4 | Q1-Q3 | Year | Q1 | Q2 | Q3 | Q1-Q3 | |
| SEK | 2017 | 2017 | 2017 | 2017 | 2017 | 2017 | 2018 | 2018 | 2018 | 2018 | |
| Earnings per share before and after dilution | |||||||||||
| 1.73 | 1.96 | 1.94 | 2.15 | 5.63 | 7.77 | 1.77 | -2.90 | 2.15 | 1.01 | ||
| Earnings per share before and after dilution and excluding items affecting comparability1) |
1.73 | 1.96 | 1.94 | 2.15 | 5.63 | 7.77 | 1.77 | 1.84 | 2.15 | 5.76 |
1) Items affecting comparability consist of impairment of goodwill and intangible assets.
| Q3 and 30 Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific Technologies |
Systems | Other | Total | |||||||||
| SEK M | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 |
| Sales, external | 4,187 | 4,793 | 4,409 | 5,190 | 2,281 | 2,342 | 2,400 | 2,981 | 5,223 | 5,886 | 0 | 0 | 18,499 21,191 | |
| Sales, internal | 91 | 79 | 17 | 21 | 167 | 285 | 17 | 20 | 19 | 23 | -311 | -428 | - | - |
| Sales | 4,278 | 4,872 | 4,426 | 5,211 | 2,448 | 2,627 | 2,417 | 3,001 | 5,242 | 5,909 | -311 | -428 | 18,499 21,191 | |
| Organic growth | 4% | 2% | 3% | 10% | 2% | 1% | 6% | 12% | 2% | 4% | - | - | 3% | 5% |
| Share of earnings in associates | - | - | - | - | 5 | 6 | - | - | 25 | 31 | - | - | 30 | 38 |
| Operating income (EBIT) excl. | ||||||||||||||
| items affecting comparability | 717 | 774 | 966 | 1,046 | 277 | 242 | 431 | 641 | 762 | 831 | -72 | -111 | 3,080 | 3,424 |
| Operating margin (EBIT) excl. | ||||||||||||||
| items affecting comparability | 16.8% 15.9% | 21.8% 20.1% | 11.3% | 9.2% | 17.8% 21.4% | 14.5% 14.1% | - | - | 16.7% 16.2% | |||||
| Items affecting comparability1) | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating income (EBIT) | 717 | 774 | 966 | 1 046 | 277 | 242 | 431 | 641 | 762 | 831 | -72 | -111 | 3,080 | 3,424 |
| Operating margin (EBIT) | 16.8% 15.9% | 21.8% 20.1% | 11.3% | 9.2% | 17.8% 21.4% | 14.5% 14.1% | - | - | 16.7% 16.2% | |||||
| Capital employed | 14,254 17,414 | 14,750 17,533 | 11,870 | 7,650 | 12,137 18,783 | 18,882 21,110 | 584 -1,078 | 72,477 81,412 | ||||||
| - of which goodwill | 8,332 10,330 | 10,016 11,876 | 7,441 | 3,751 | 9,229 13,966 | 11,554 12,246 | - | - | 46,573 52,169 | |||||
| - of which other intangible assets and | ||||||||||||||
| property, plant and equipment | 3,395 | 4,003 | 3,194 | 3,796 | 3,777 | 2,406 | 2,370 | 4,263 | 4,156 | 4,435 | 140 | 148 | 17,032 19,052 | |
| - of which investments in associates | 9 | 9 | - | - | 503 | 568 | 12 | 17 | 1,623 | 1,788 | - | - | 2,147 | 2,383 |
| Return on capital employed | ||||||||||||||
| excluding items affecting comparability 19.2% 17.4% | 25.9% 23.8% | 9.3% | 12.3% | 14.6% 14.4% | 15.7% 15.6% | - | - | 17.0% 16.8% | ||||||
| Operating income (EBIT) | 717 | 774 | 966 | 1,046 | 277 | 242 | 431 | 641 | 762 | 831 | -72 | -111 | 3,080 | 3,424 |
| Impairment of intangible assets | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Depreciation and amortization | 100 | 114 | 79 | 97 | 78 | 67 | 85 | 129 | 62 | 75 | 4 | 5 | 407 | 488 |
| Net capital expenditure | -135 | -148 | -128 | -78 | -65 | -52 | -66 | -81 | -50 | -64 | -6 | -5 | -448 | -429 |
| Change in working capital | -42 | -113 | 128 | 137 | -135 | -137 | -76 | -15 | -182 | -249 | -12 | 81 | -319 | -296 |
| Cash flow | 640 | 627 | 1,046 | 1,203 | 155 | 120 | 373 | 674 | 593 | 593 | -86 | -29 | 2,720 | 3,187 |
| Non-cash items | 11 | -78 | 11 | -78 | ||||||||||
| Interest paid and received | -77 | -105 | -77 | -105 | ||||||||||
| Operating cash flow | 2,654 | 3,004 |
| Global | Entrance | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | |||||||||
| SEK M | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | |
| Sales, external | 12,962 14,499 | 13,645 14,586 | 6,302 | 6,437 | 7,484 | 8,285 | 15,635 17,075 | 0 | 0 | 56,028 60,881 | |||||
| Sales, internal | 250 | 217 | 52 | 57 | 508 | 757 | 54 | 64 | 74 | 71 | -938 -1,166 | - | - | ||
| Sales | 13,212 14,716 | 13,697 14,644 | 6,811 | 7,193 | 7,538 | 8,349 | 15,709 17,146 | -938 -1,166 | 56,028 60,881 | ||||||
| Organic growth | 3% | 2% | 4% | 7% | 0% | 2% | 6% | 8% | 4% | 5% | - | - | 4% | 5% | |
| Share of earnings in associates | - | - | - | - | 16 | 19 | - | - | 70 | 113 | - | - | 86 | 132 | |
| Operating income (EBIT) excl. | |||||||||||||||
| items affecting comparability | 2,148 | 2,345 | 2,968 | 2,913 | 702 | 228 | 1,338 | 1,671 | 2,121 | 2,360 | -296 | -354 | 8,982 | 9,164 | |
| Operating margin (EBIT) excl. | |||||||||||||||
| items affecting comparability | 16.3% 15.9% | 21.7% 19.9% | 10.3% | 3.2% | 17.8% 20.0% | 13.5% 13.8% | - | - | 16.0% 15.1% | ||||||
| Items affecting comparability1) | - | - | - | - | - | -5,595 | - | - | - | - | - | - | - -5,595 | ||
| Operating income (EBIT) | 2,148 | 2,345 | 2,968 | 2,913 | 702 | -5,367 | 1,338 | 1,671 | 2,121 | 2,360 | -296 | -354 | 8,982 | 3,569 | |
| Operating margin (EBIT) | 16.3% 15.9% | 21.7% 19.9% | 10.3% | -74.6% | 17.8% 20.0% | 13.5% 13.8% | - | - | 16.0% | 5.9% | |||||
| Capital employed | 14,254 17,414 | 14,750 17,533 | 11,870 | 7,650 | 12,137 18,783 | 18,882 21,110 | 584 -1,078 | 72,477 81,412 | |||||||
| - of which goodwill | 8,332 10,330 | 10,016 11,876 | 7,441 | 3,751 | 9,229 13,966 | 11,554 12,246 | - | - | 46,573 52,169 | ||||||
| - of which other intangible assets and | |||||||||||||||
| property, plant and equipment | 3,395 | 4,003 | 3,194 | 3,796 | 3,777 | 2,406 | 2,370 | 4,263 | 4,156 | 4,435 | 140 | 148 | 17,032 19,052 | ||
| - of which investments in associates | 9 | 9 | - | - | 503 | 568 | 12 | 17 | 1,623 | 1,788 | - | - | 2,147 | 2,383 | |
| Return on capital employed | |||||||||||||||
| excluding items affecting comparability 19.8% 19.1% | 25.9% 23.0% | 7.8% | 2.9% | 15.0% 13.0% | 14.9% 15.6% | - | - | 16.4% 15.4% | |||||||
| Operating income (EBIT) | 2,148 | 2,345 | 2,968 | 2,913 | 702 | -5,367 | 1,338 | 1,671 | 2,121 | 2,360 | -296 | -354 | 8,982 | 3,569 | |
| Impairment of intangible assets | - | - | - | - | - | 5,595 | - | - | - | - | - | - | - | 5,595 | |
| Depreciation and amortization | 320 | 344 | 251 | 275 | 230 | 226 | 244 | 375 | 201 | 217 | 11 | 15 | 1,258 | 1,452 | |
| Net capital expenditure | -396 | -361 | -343 | -239 | -276 | -156 | -205 | -214 | -168 | -203 | -26 | -23 | -1,414 -1,195 | ||
| Change in working capital | -585 | -832 | -470 | -261 | -539 | -92 | -437 | -316 | -264 | -825 | -115 | 20 | -2,408 -2,306 | ||
| Cash flow | 1,488 | 1,496 | 2,406 | 2,689 | 117 | 206 | 941 | 1,517 | 1,891 | 1,549 | -426 | -342 | 6,417 | 7,115 | |
| Non-cash items | 4 | -234 | 4 | -234 | |||||||||||
| Interest paid and received | -368 | -446 | -368 | -446 | |||||||||||
| Operating cash flow | 6,053 | 6,435 | |||||||||||||
| Average number of employees | 11,186 11,826 | 8,924 | 8,776 | 11,665 | 11,437 | 4,257 | 4,580 | 11,085 11,364 | 276 | 290 | 47,393 48,273 |
1) Items affecting comparability consist of impairment of goodwill and other immaterial assets
Year and 31 Dec
| Global | Entrance | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 |
| Sales, external | 16,535 17,729 | 16,963 17,873 | 8,491 | 8,553 | 9,619 10,301 | 19,685 21,681 | 0 | 0 | 71,293 76,137 | |||||
| Sales, internal | 302 | 351 | 81 | 67 | 698 | 658 | 78 | 72 | 104 | 100 | -1,262 -1,249 | - | - | |
| Sales | 16,837 18,081 | 17,044 17,940 | 9,189 | 9,211 | 9,697 10,373 | 19,789 21,781 | -1,262 -1,249 | 71,293 76,137 | ||||||
| Organic growth | 3% | 4% | 5% | 4% | -9% | 0% | 3% | 7% | 4% | 4% | - | - | 2% | 4% |
| Share of earnings in associates | - | - | - | - | 23 | 25 | - | - | 104 | 104 | - | - | 127 | 129 |
| Operating income (EBIT) excl. | ||||||||||||||
| items affecting comparability | 2,722 | 2,990 | 3,640 | 3,815 | 787 | 934 | 1,752 | 1,946 | 2,753 | 3,087 | -401 | -432 | 11,254 12,341 | |
| Operating margin (EBIT) excl. | ||||||||||||||
| items affecting comparability | 16.2% | 16.5% | 21.4% | 21.3% | 8.6% | 10.1% | 18.1% | 18.8% | 13.9% | 14.2% | - | - | 15.8% | 16.2% |
| Items affecting comparability1) | -781 | - | -34 | - | -258 | - | -148 | - | -207 | - | -168 | - | -1 597 | - |
| Operating income (EBIT) | 1,942 | 2,990 | 3,606 | 3,815 | 529 | 934 | 1,603 | 1,946 | 2,546 | 3,087 | -569 | -432 | 9,657 12,341 | |
| Operating margin (EBIT) | 11.5% | 16.5% | 21.2% | 21.3% | 5.8% | 10.1% | 16.5% | 18.8% | 12.9% | 14.2% | - | - | 13.5% | 16.2% |
| Capital employed | 13,275 13,865 | 15,749 16,095 | 11,803 12,048 | 11,331 15,615 | 18,291 18,379 | -98 | -71 | 70,351 75,932 | ||||||
| - of which goodwill | 8,348 | 8,571 | 11,012 11,190 | 7,920 | 7,752 | 8,784 11,121 | 11,480 11,696 | - | - | 47,544 50,330 | ||||
| - of which other intangible assets and | ||||||||||||||
| property, plant and equipment | 3,296 | 3,567 | 3,516 | 3,310 | 3,900 | 3,789 | 2,499 | 4,064 | 4,282 | 4,273 | 125 | 140 | 17,618 19,144 | |
| - of which investments in associates | 9 | 9 | - | - | 496 | 519 | - | 17 | 1,605 | 1,699 | - | - | 2,109 | 2,243 |
| Return on capital employed | ||||||||||||||
| excluding items affecting comparability 19.9% | 21.4% | 25.0% | 24.2% | 6.6% | 7.8% | 16.6% | 14.4% | 15.7% | 16.4% | - | - | 16.5% | 16.6% | |
| Operating income (EBIT) | 1,942 | 2,990 | 3,606 | 3,815 | 529 | 934 | 1,603 | 1,946 | 2,546 | 3,087 | -569 | -432 | 9,657 12,341 | |
| Restructuring costs | 781 | - | 34 | - | 258 | - | 148 | - | 207 | - | 168 | - | 1,597 | - |
| Depreciation and amortization | 402 | 421 | 330 | 333 | 283 | 310 | 296 | 353 | 257 | 255 | 11 | 15 | 1,580 | 1,688 |
| Net capital expenditure | -472 | -571 | -372 | -466 | -211 | -337 | -238 | -297 | -157 | -273 | -28 | -30 | -1,478 -1,975 | |
| Change in working capital | -75 | 136 | -152 | -191 | 705 | -48 | -86 | -271 | -141 | -4 | -188 | 30 | 62 | -347 |
| Cash flow | 2,577 | 2,977 | 3,447 | 3,491 | 1,564 | 859 | 1,724 | 1,732 | 2,713 | 3,065 | -607 | -417 | 11,418 11,706 | |
| Non-cash items | -354 | -221 | -354 | -221 | ||||||||||
| Interest paid and received | -597 | -557 | -597 | -557 | ||||||||||
| Operating cash flow | 10,467 10,929 | |||||||||||||
| Average number of employees | 10,835 11,033 | 8,961 | 8,836 | 12,481 11,756 | 3,907 | 4,328 | 10,505 11,211 | 240 | 264 | 46,928 47,426 |
1) Items affecting comparability in 2016 consist of restructuring costs.
| Sales by continent Q3 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 |
| Europe | 3,669 | 4,231 | 12 | 12 | 133 | 132 | 655 | 709 | 2,458 | 2,696 | -155 | -158 | 6,771 | 7,622 |
| North America | 159 | 158 | 3,988 | 4,779 | 136 | 263 | 1,081 | 1,519 | 2,311 | 2,725 | -99 | -193 | 7,575 | 9,251 |
| Central- and South America | 20 | 26 | 401 | 394 | 11 | 14 | 76 | 129 | 14 | 22 | -7 | -11 | 514 | 574 |
| Africa | 176 | 211 | 5 | 3 | 3 | 5 | 84 | 78 | 14 | 11 | -8 | -9 | 275 | 299 |
| Asia | 231 | 215 | 18 | 20 | 1,702 | 1,742 | 453 | 498 | 310 | 322 | -19 | -29 | 2,696 | 2,768 |
| Oceania | 23 | 31 | 3 | 2 | 463 | 470 | 68 | 68 | 134 | 134 | -22 | -27 | 669 | 677 |
| Total | 4,278 | 4,872 | 4,426 | 5,211 | 2,448 | 2,627 | 2,417 | 3,001 | 5,242 | 5,909 | -311 | -428 | 18,499 21,191 |
| Sales by continent Q1-Q3 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Övrigt | Total | ||||||||
| SEK M | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 |
| Europe | 11,466 12,833 | 37 | 33 | 372 | 415 | 2,037 | 2,136 | 7,550 | 8,167 | -449 | -497 | 21,013 23,087 | ||
| North America | 441 | 440 | 12,354 13,353 | 421 | 634 | 3,269 | 4,030 | 6,749 | 7,574 | -307 | -453 | 22,928 25,578 | ||
| Central- and South America | 67 | 71 | 1,218 | 1,178 | 30 | 38 | 260 | 338 | 47 | 70 | -23 | -28 | 1,599 | 1,666 |
| Africa | 477 | 611 | 19 | 7 | 7 | 12 | 201 | 273 | 43 | 43 | -19 | -20 | 728 | 927 |
| Asia | 692 | 675 | 64 | 68 | 4,632 | 4,752 | 1,536 | 1,364 | 931 | 912 | -75 | -95 | 7,780 | 7,676 |
| Oceania | 68 | 86 | 5 | 5 | 1,349 | 1,342 | 235 | 209 | 390 | 380 | -65 | -72 | 1,981 | 1,948 |
| Total | 13,212 14,716 | 13,697 14,644 | 6,811 | 7,193 | 7,538 | 8,349 | 15,709 17,146 | -938 -1,166 | 56,028 60,881 |
| Sales by product group Q3 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 |
| Mechanical locks, lock systems and fittings | 2,217 | 2,426 | 1,798 | 2,011 | 1,209 | 1,298 | -29 | -7 | 2 | 3 | -168 | -172 | 5,029 | 5,559 |
| Electromechanical and electronic locks | 1,336 | 1,597 | 650 | 1,009 | 494 | 632 | 2,446 | 3,006 | 171 | 250 | -107 | -213 | 4,990 | 6,282 |
| Security doors and hardware | 648 | 754 | 1,972 | 2,180 | 742 | 699 | - | 1 | - | - | -15 | -19 | 3,348 | 3,616 |
| Entrance automation | 76 | 95 | 5 | 11 | 3 | -2 | - | - | 5,070 | 5,656 | -21 | -25 | 5,132 | 5,735 |
| Total | 4,278 | 4,872 | 4,426 | 5,211 | 2,448 | 2,627 | 2,417 | 3,001 | 5,242 | 5,909 | -311 | -428 | 18,499 21,191 |
| Sales by product group Q1-Q3 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 |
| Mechanical locks, lock systems and fittings | 6,926 | 7,430 | 5,540 | 5,691 | 3,519 | 3,679 | 23 | 8 | 5 | 7 | -497 | -514 | 15,517 16,302 | |
| Electromechanical and electronic locks | 4,072 | 4,750 | 1,956 | 2,681 | 1,343 | 1,627 | 7,515 | 8,339 | 515 | 667 | -321 | -521 | 15,080 17,543 | |
| Security doors and hardware | 1,990 | 2,256 | 6,170 | 6,215 | 1,941 | 1,879 | - | 1 | - | - | -42 | -55 | 10,058 10,295 | |
| Entrance automation | 223 | 280 | 31 | 57 | 8 | 8 | - | - | 15,189 16,472 | -78 | -76 | 15,373 16,741 | ||
| Total | 13,212 14,716 | 13,697 14,644 | 6,811 | 7,193 | 7,538 | 8,349 | 15,709 17,146 | -938 -1,166 | 56,028 60,881 |
| Q3 | Q1-Q3 | |||||
|---|---|---|---|---|---|---|
| SEK M | 2017 | 2018 | 2017 | 2018 | ||
| Purchase prices | ||||||
| Cash paid for acquisitions during the year | 1,631 | 2,051 | 2,156 | 4,001 | ||
| Holdbacks and deferred considerations for acquisitions during the year | 63 | 24 | 220 | 766 | ||
| Adjustment of purchase prices for acquisitions in prior years | 0 | -1 | 4 | -2 | ||
| Total | 1,693 | 2,074 | 2,380 | 4,765 | ||
| Acquired assets and liabilities at fair value | ||||||
| Intangible assets | 20 | 296 | 153 | 726 | ||
| Property, plant and equipment | 72 | 59 | 90 | 145 | ||
| Financial assets | 22 | 7 | 25 | 219 | ||
| Inventories | 94 | 249 | 163 | 462 | ||
| Current receivables and investments | 191 | 253 | 318 | 500 | ||
| Cash and cash equivalents | 147 | 216 | 184 | 366 | ||
| Non-current liabilities | -120 | -145 | -189 | -305 | ||
| Current liabilities | -406 -1,060 | -499 -1,389 | ||||
| Total | 19 | -125 | 244 | 724 | ||
| Goodwill | 1,675 | 2,199 | 2,136 | 4,041 | ||
| Change in cash and cash equivalents due to acquisitions | ||||||
| Cash paid for acquisitions during the year | 1,631 | 2,051 | 2,156 | 4,001 | ||
| Cash and cash equivalents in acquired subsidiaries | -147 | -216 | -184 | -366 | ||
| Paid considerations for acquisitions in prior years | 275 | 28 | 502 | 259 | ||
| Total | 1,759 | 1,864 | 2,475 | 3,895 |
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.
| 30 September 2018 | Financial instruments at fair value |
|||||
|---|---|---|---|---|---|---|
| Carrying | Fair value |
Level 1 Level 2 Level 3 | ||||
| SEK M Financial assets |
amount | |||||
| Financial assets at fair value through profit and loss | 75 | 75 | 75 | |||
| Available-for-sale financial assets | 9 | 9 | ||||
| Loans and other receivables | 15,397 | 15,397 | ||||
| Derivative instruments - hedge accounting | 51 | 51 | 51 | |||
| Financial liabilities | ||||||
| Financial liabilities at fair value through profit and loss | 1,757 | 1,757 | 96 | 1,661 | ||
| Financial liabilities at amortized cost | 36,934 | 36,869 | ||||
| Derivative instruments - hedge accounting | 38 | 38 | 38 | |||
| Financial instruments | ||||||
| 31 December 2017 | at fair value | |||||
| Carrying | Fair | |||||
| SEK M | amount | value | Level 1 Level 2 Level 3 | |||
| Financial assets Financial assets at fair value through profit and loss |
39 | 39 | 39 | |||
| Available-for-sale financial assets | 11 | 11 | ||||
| Loans and other receivables Derivative instruments - hedge accounting |
13,785 68 |
13,785 68 |
68 | |||
| Financial liabilities | ||||||
| Financial liabilities at fair value through profit and loss Financial liabilities at amortized cost |
1,660 30,821 |
1,660 30,831 |
100 | 1,559 |
IFRS 9 addresses the classification, measurement and recognition ASSA ABLOY allocates the transaction price to each performance of financial liabilities and assets and replaces the parts of IAS 39 obligation on the basis of a stand-alone selling price. The standthat relate to the classification and measurement of financial alone selling price is the price at which the Group would sell instruments. With IFRS 9 a new impairment model is being the good or service separately to a customer. If a stand-alone implemented, based on expected credit losses rather than incurred selling price is not directly observable, it is usually calculated either losses. For the Group, the new model will entail a partly new by the method of adjusted market assessment or from expected process for the measurement of credit losses, but the Standard will costs plus a profit margin. have no material impact on the Group's performance and financial
IFRS 15 supersedes IAS 11 'Construction Contracts' and IAS 18 'Revenues' and includes a new single model for revenue ASSA ABLOY recognizes revenues when the Group fulfils recognition related to customer contracts. The new Standard a performance obligation by delivering a good or service to introduces a five-step model as the basis for the recognition a customer, i.e. when the customer acquires control over the asset. of revenues from contracts with customers. The Standard A performance obligation may either be fulfilled over time or at prescribes that a company shall recognize revenues when the a particular point in time. ASSA ABLOY recognizes the revenues company fulfills a performance obligation by transferring a over time if any of the following criteria are met: promised good or service to a customer. The good or service is transferred when the customer acquires control over the asset, a) The customer simultaneously receives and consumes the which may happen either over time or at a particular point in time. benefits provided by the Group's performance as the Group In all important respects the Group's previous revenue recognition performs practices conform with IFRS 15 and the new Standard will therefore b) The Group's performance creates or enhances an asset which have no impact on the Group's performance and financial position. the customer controls as the asset is created or enhanced However, additional information about the disaggregation of c) The Group's performance does not create an asset with an revenue is given in Note 1. alternative use to the Group and the Group has a right to
According to the five-step model, a company should carry out the following steps of revenue recognition: Identify the customer Revenues that are not recognized over time are recognized at transaction price; Allocate the transaction price to the performance control over the asset. obligations, and finally Recognize the revenues assignable to each
At the start of a customer contract, ASSA ABLOY decides whether the revenues. Reporting of revenues resulting from sale of the goods and/or services that are promised comprise a single the Group's products is made at a particular point in time when performance obligation or several separate performance the customer acquires control of the product – normally upon obligations. A performance obligation is defined as a distinct delivery. ASSA ABLOY also provides installation services which promise to transfer a good or service to the customer. A promised are recognized over time. For shorter installation contracts, good or service is distinct if both the following criteria are met: revenues are in practice recognized when the installation is
a) the customer can benefit from the good or service either on its income over time. own or together with other resources that are readily available to the customer, and Adjustment of opening balances in 2018
b) the Group's promise to transfer the good or services to Since IFRS 9 and IFRS 15 have no material impacts on the the customer is separately identifiable from other promises in the financial reports, no new opening balance is presented in 2018. contract.
in the contract, the Group takes account of possible payment 2019. Earlier application is permitted but the Group has chosen variations such as cash discounts, volume discounts and rights to not to take up this option. Application of the new Standard means return goods. Payment variations are included in the transaction that ASSA ABLOY will recognize all significant lease contracts in price only if it is highly probable that no significant return of the balance sheet. The Group's lease contracts mainly concern
a limited extent. None of the Group's customer contracts of the Standard. concerning the sale of goods or services is thought to incorporate a significant financing component. The Group reports no contract assets because it adopts the practical solution permitted by the Standard which means that moneys for paying a customer contract are reported as costs at the time when they arise if the write-off period for the asset that the Group would otherwise have reported is no more than one year.
position. Any rebates are allocated proportionately to all performance obligations in the contract unless there is clear evidence that
payment for performance completed to date.
contract; Identify the performance obligations; Determine the a particular point in time: i.e. the time when the customer acquires
of the performance obligations. ASSA ABLOY's revenues come mainly from sales of products. Service related to products sold provides only a limited part of completed. Revenues from service contracts are recognized as
When setting the transaction price, which is the payment promised IFRS 16 will apply to the accounting year that begins on 1 January revenues is expected to occur in a future period. leased premises, company cars and production and office equipment. Preparatory work prior to implementation is in ASSA ABLOY receives advance payments from customers to progress, but the Group has not yet evaluated the financial effects
Change in sales for comparable units after adjustments for Interest-bearing liabilities less interest-bearing assets. acquisitions and exchange rate effects.
Operating income before depreciation and amortization as a bearing liabilities including deferred tax liability. percentage of sales.
Operating income before amortization of intangible assets recognized in business combinations, as a percentage of sales. Interest coverage ratio
Operating income as a percentage of sales. Return on shareholders' equity
Income before tax as a percentage of sales. equity.
See the table on operating cash flow for detailed information. For Income before tax plus net interest as a percentage of relationship between operating cash flow and cash flow from average capital employed excluding restructuring reserves. operating activities see the company's last Annual Report.
property, plant and equipment. potential dilution.
Depreciation and amortization of intangible assets and property, plant and equipment.
Operating margin (EBITDA) Total assets less interest-bearing assets and non-interest-
Operating margin (EBITA) Shareholders' equity as a percentage of total assets.
Net income attributable to parent company's shareholders Profit margin (EBT) as a percentage of average parent company's shareholders
Net capital expenditure Net income excluding non-controlling interests divided by Investments in, less disposals of, intangible assets and weighted average number of outstanding shares after any
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.