Annual Report • Feb 2, 2023
Annual Report
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| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Order intake | 7,052 | 6,293 | 12% | 27,701 | 23,474 | 18% |
| Net sales | 7,228 | 5,726 | 26% | 27,016 | 21,715 | 24% |
| Operating profit | 951 | 735 | 29% | 3,620 | 2,825 | 28% |
| EBITA | 1,081 | 836 | 29% | 4,098 | 3,202 | 28% |
| EBITA margin, % | 15.0 | 14.6 | 15.2 | 14.7 | ||
| Profit before taxes | 885 | 713 | 24% | 3,440 | 2,725 | 26% |
| Net profit | 677 | 524 | 29% | 2,681 | 2,097 | 28% |
| Earnings per share before dilution, SEK | 1.86 | 1.44 | 29% | 7.36 | 5.76 | 28% |
| Return on capital employed, % | 23 | 22 | 23 | 22 | ||
| Cash flow from operating activities | 850 | 901 | -6% | 2,372 | 2,853 | -17% |
| Net debt/equity ratio, % | 67 | 53 | 67 | 53 |
A strong fourth quarter concludes the year of 2022 where the Indutrade model once again demonstrated its strength. Our balanced and diversified structure, with customer-oriented, entrepreneurial and flexible companies has resulted in a new record year for Indutrade, with net sales of SEK 27 billion and a margin of 15.2%. We also raised our target for the EBITA margin to a minimum of 14% per year over a business cycle (the previous target was 12%) and continued to take important strategic steps, not least with sustainability, where we started reporting Scope 3 emissions and joined the Science Based Targets initiative.
Demand during the fourth quarter was stable and order intake increased by 12% to SEK 7.1 billion (6.3). Organically, order intake was in line with the strong level during the corresponding period previous year. The majority of the companies grew organically and demand was good in several major customer segments, with the strongest performance in the process industry, energy segment and in medical technology and pharmaceuticals. We have, however, noticed large variation in the demand between various companies, segments and countries, with the weakest performance in construction.
Sales growth was strong during the quarter and it improved organically in all business areas. Net sales amounted to SEK 7.2 billion, an increase of 26% compared to the corresponding period previous year. Organically, growth was 13%, driven both by higher volumes and prices. Disruptions in the supply chains continued during the quarter, but the situation continued to improve compared to the third quarter 2022, which impacted invoicing positively. The strongest organic growth occurred in the Benelux and Flow Technology business areas, where the majority of companies developed positively.
EBITA increased by 29% to SEK 1.1 billion, corresponding to an EBITA margin of 15.0% (14.6%). Included in earnings are some nonrecurring items related to revaluation of contingent earn-out payments and impairment of goodwill. Excluding nonrecurring items, the EBITA margin was 14.6% (15.0%). During the quarter, our companies continued with active pricing efforts and the gross margin remained at a high level, although lower than previous year, which somewhat dampened the EBITA margin. In the Flow Technology, Finland and UK business areas, the EBITA margin improved compared to the corresponding period previous year, with positive development in the majority of the companies.
The trend from earlier quarters with increases in inventory dampened during the fourth quarter, driven by strong sales and a somewhat better delivery situation. Overall however, cash flow from operating activities, which amounted to 850 million (901), and working capital efficiency were lower than in the corresponding period previous year. Net debt increased during the quarter as a result of the high rate of acquisition, but our financial position remains strong and the net debt/equity ratio was in line with historical levels.
In terms of acquisitions, 2022 has been a successful year and we welcomed 16 new companies to the Group, with total annual sales of approximately SEK 1.9 million. During the fourth quarter, the acquisition of the Danish company BPI was finalised, which is a leading manufacturer of customer specific and technology-based engineered foam solutions. We also welcomed the Swedish company, Geotech, which offers specialised drilling rigs, geotechnical instruments and other field equipment for geotechnical investigations. In Germany, which is a prioritised market for us, we acquired Palas – a leading manufacturer of precision equipment for generating, measuring and analysing particles in the air. The last acquisition of the year was Aichhorn in Austria, which offers valves for industrial and infrastructure applications. All of the acquisitions strengthen our position in attractive product and customer segments.
Despite the higher macroeconomic uncertainty, we expect a stable acquisition climate in 2023 and have thus far acquired three companies. In January, Sax Lift, a specialist in scissor lift tables was acquired, as well as Hobe, which manufactures hardmetal precision tools and SKS – a leading technical trading company of flow technology components in the Netherlands.
Over the last few years, we have continuously strengthened our acquisition resources in the business areas and at the Group level. This, together with continued good activity in our acquisition processes, provides us with good prerequisites for making more value-creating acquisitions in 2023.
As we now embark on a new year, we have an overall socioeconomic situation characterised by a great deal of uncertainty and there is weaker demand in some of the customer segments. At the same time, the long-term market trends are strong, with large private and public investments being made in, among others, infrastructure, energy and electrification. Our decentralised model will continue being a strength in 2023 and we have an historically large order backlog. This gives us comfort in the sales and earnings trend over the next few quarters, although the comparison figures will be challenging. We are goal-oriented and I have great confidence that Indutrade will continue delivering sustainable profitable growth!
Bo Annvik, President and CEO
Demand during the fourth quarter was overall stable and unchanged compared to the high level during the corresponding period previous year. The majority of companies increased their order intake, although the variation was large, among other things because of the strong comparison figures previous year in many companies. The variation was also large in different customer segments, at the same time as many companies with customers in the process industry, energy segment and medical technology and pharmaceuticals continued showing positive development. Many of the companies with customers in construction experienced a weakened demand.
Order intake was 2% lower than invoicing and amounted to SEK 7,052 million (6,293), which is an increase of 12% compared to the corresponding period previous year. For comparable units, order intake was unchanged, acquisitions contributed with 6% and currency movements had a positive impact of 6%.
Order intake increased organically in the Industrial Components, Flow Technology and Fluids & Mechanical Solutions business areas, among other things driven by the strong performance from companies with customers in the medical technology and pharmaceuticals industry. For other business areas, there was overall a weaker order intake compared to previous year for comparable units.
Order intake for the full year amounted to SEK 27,701 million (23,474), which is an increase of 18%. Comparable units increased by 6%, acquisitions contributed with 7% and currency movements had a positive impact of 5%.
Net sales continued to grow strongly during the fourth quarter and increased by 26% compared to the corresponding period previous year, amounting to SEK 7,228 million (5,726). Comparable units increased by 13%, acquisitions contributed with 7% and currency movements had a positive impact of 6%.
Net sales improved organically in all business areas. The strongest performance was in the Benelux and Flow Technology business areas, where most companies and customer segments developed positively.
Many companies noted fewer disruptions in the supply chains, although the delivery times in general are still long and some problems remain. The biggest challenge was still experienced in the Measurement & Sensor Technology business area associated with electronics components.
All business with companies in Russia and Belarus is still suspended because of the ongoing Russian invasion of Ukraine. The overall direct and indirect exposure to these countries is very limited and the Group does not have any subsidiaries or employees in Russia, Ukraine or Belarus. During 2021, net sales to these countries accounted for less than 1% of Indutrade's total sales. The effect on net sales during the fourth quarter was limited.
Net sales for the full year increased by 24% to SEK 27,016 million (21,715). Comparable units increased by 12%, acquisitions contributed with 8% and currency movements had a positive impact of 4%.
Operating profit before amortisation of intangible assets attributable to acquisitions (EBITA) amounted to SEK 1,081 million (836) for the fourth quarter, which is an improvement of 29%. Comparable units increased by 15%, acquisitions contributed with 7% and currency movements had a positive impact of 7%. The EBITA margin increased and amounted to 15.0% (14.6%).
EBITA was positively impacted during the quarter by nonrecurring items of SEK 25 million (-21) net. Revaluation of contingent earn-out payments had a positive impact of SEK 90 million and impairment of goodwill had a negative impact of SEK 65 million. Excluding nonrecurring items, the EBITA margin amounted to 14.6% (15.0%).
The weaker EBITA margin excluding nonrecurring items is primarily explained by a somewhat weaker gross margin for comparable units. During the quarter, many companies continued raising their prices to customers and the gross margin remained at a good level, but it fell slightly compared to the previous year's high level and amounted to 34.9% (35.9%). The decrease primarily came from gradually rising costs for raw materials and components which had been purchased earlier during the year. Accumulated for the full year, the gross margin was 34.7% (35.0%).
The EBITA margin improved during the quarter for the UK, Flow Technology and Finland business areas. The majority of the companies developed positively in these business areas and for the UK and Finland, the improvement was primarily attributable to higher gross margin for comparable units, while strong organic growth contributed the most in the Flow Technology business area. The weakest development of the margin was reported by the Fluids & Mechanical Solutions business area, among other things because of acquisition costs.
Net financial items during the fourth quarter amounted to SEK -66 million (-22). The higher financial costs were due to increased borrowing and higher interest rates. Tax on profit for the quarter amounted to SEK -208 million (-189), corresponding to a tax charge of 24% (27%). Profit for the quarter increased by 29% to SEK 677 million (524). Earnings per share before dilution increased by 29% and amounted to SEK 1.86 (1.44).
EBITA for the full year amounted to SEK 4,098 million (3,202), an increase of 28%. Comparable units increased by 14%, acquisitions contributed with 9% and currency movements had a positive impact of 5%. The EBITA margin increased and amounted to 15.2% (14.7%).
Net financial items for the full year amounted to SEK -180 million (-100). Tax on profit for the year amounted to SEK -759 million (-628), corresponding to a tax charge of 22% (23%). Profit for the period increased by 28% and amounted to SEK 2,681 million (2,097). Earnings per share before dilution increased by 28% and amounted to SEK 7.36 (5.76).
Return on capital employed increased compared to previous year and amounted to 23% (22%), primarily driven by the improved earnings level. Return on equity amounted to 24% (23%).
The companies in this business area offer custom-manufactured niche products, design solutions, aftermarket service and assembly, and customisation. The business area includes companies with a considerable amount of own manufacturing and proprietary products. Customers are in the energy, construction & infrastructure, and healthcare segments. Product areas include valves, hydraulic and industrial equipment, and measurement technology. The business area has strong market positions in the Benelux area (Belgium, the Netherlands and Luxembourg).
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 1,153 | 843 | 37% | 4,084 | 3,331 | 23% |
| EBITA | 167 | 127 | 31% | 599 | 464 | 29% |
| EBITA margin, % | 14.5 | 15.1 | 14.7 | 13.9 |
Net sales increased by 37% during the fourth quarter to SEK 1,153 million (843). Comparable units increased by 21%, acquisitions contributed with 7% and currency movements had a positive impact of 9%.
Demand during the quarter was overall lower than during the corresponding period previous year, even though nearly half of the companies had a higher order intake. A strong performance was exhibited by, among others, valves for power generation, while a weaker performance from companies with customers in medical technology and pharmaceuticals and construction counteracted this.
Order intake was 12% lower than invoicing during the quarter.
This business area includes companies that offer custom manufactured niche products, design solutions, aftermarket service and assembly, and customisation. The business area includes companies with a considerable amount of own manufacturing and proprietary products. Customers are in the construction & infrastructure, engineering, healthcare and chemical industries. Product areas include construction material, hydraulic and industrial equipment and valves. Each of the individual companies has a strong market position in the DACH area (Germany, Austria and Switzerland), and most companies are market leaders in their fields.
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 534 | 457 | 17% | 2,111 | 1,661 | 27% |
| EBITA | 80 | 69 | 16% | 316 | 236 | 34% |
| EBITA margin, % | 15.0 | 15.1 | 15.0 | 14.2 |
Net sales increased by 17% during the fourth quarter to SEK 534 million (457). Comparable units increased by 1%, acquisitions contributed with 3% and currency movements had a positive impact of 13%.
Order intake increased organically in the majority of the business area's companies during the quarter, but demand was overall still lower than during the corresponding period previous year. The trend is primarily explained by some large orders during the previous year from the Swiss pharmaceutical and process industry. During the quarter, order intake was 2% lower than invoicing.
EBITA increased during the fourth quarter by 16% to SEK 80 million (69), corresponding to an EBITA margin of 15.0% (15.1%). Comparable units decreased by 1%, acquisitions contributed with 3% and currency movements had a positive impact of 14%.
EBITA increased during the fourth quarter by 31% to SEK 167 million (127), corresponding to an EBITA margin of 14.5% (15.1%). Comparable units increased by 9%, acquisitions contributed with 13% and currency movements had a positive impact of 9%.
The lower EBITA margin was primarily attributable to a weaker performance for companies in construction.
The somewhat weaker EBITA margin was primarily attributable to low organic sales growth in combination with higher activity levels and overhead costs.
The Finland business area includes companies that offer sales of components as well as customisation, combinations and installations of products from various suppliers. Customers are in the construction & infrastructure, engineering, water/wastewater, energy and chemical industries. Products range from hydraulics and industrial equipment to measurement technology, valves, service, filters and process technology. The business area has a strong market position in Finland.
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 605 | 525 | 15% | 2,220 | 1,826 | 22% |
| EBITA | 96 | 81 | 19% | 370 | 283 | 31% |
| EBITA margin, % | 15.9 | 15.4 | 16.7 | 15.5 |
Net sales increased by 15% during the fourth quarter to SEK 605 million (525). Comparable units increased by 4%, acquisitions contributed with 3% and currency movements had a positive impact of 8%.
The majority of the business area's companies increased their order intake during the quarter. Despite that, demand was overall lower than during the corresponding period previous year, primarily due to strong comparison figures for a couple of companies.
Order intake was 8% lower than invoicing during the quarter.
EBITA increased during the fourth quarter by 19% to SEK 96 million (81), corresponding to an EBITA margin of 15.9% (15.4%). Comparable units increased by 8%, acquisitions contributed with 1% and currency movements had a positive impact of 10%.
The improved EBITA margin was primarily derived from strong growth in gross margin for many companies.
Companies in this business area offer components and systems for controlling, measuring, monitoring and regulating flows. The business area includes companies that specialise in various areas of industrial flow technology. Customers are in the process industry, food and pharmaceutical industries, water/wastewater, energy and marine industries. Product areas include valves, pipes and pipe systems, measurement technology, pumps, hydraulics and industrial equipment. The business area has a strong market position especially in Sweden, but also in the Northern Europe.
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 1,370 | 1,109 | 24% | 5,407 | 4,301 | 26% |
| EBITA | 222 | 168 | 32% | 882 | 668 | 32% |
| EBITA margin, % | 16.2 | 15.1 | 16.3 | 15.5 |
Net sales increased by 24% during the fourth quarter to SEK 1,370 million (1,109). Comparable units increased by 18%, acquisitions contributed with 1% and currency movements had a positive impact of 5%.
Overall, demand during the quarter was higher than during the corresponding period previous year, with positive order development in the majority of the business area's companies. A good demand was exhibited, among others, from customers in medical technology and pharmaceuticals as well as the energy and marine segments. Order intake was 6% higher than invoicing during the quarter.
EBITA increased during the fourth quarter by 32% to SEK 222 million (168), corresponding to an EBITA margin of 16.2% (15.1%). Comparable units increased by 25%, acquisitions contributed with 2% and currency movements had a positive impact of 5%.
The higher EBITA margin was primarily attributable to a strong sales trend for comparable units.
Companies in this business area offer technological components (both hydraulic and mechanic), as well as solutions that have a high technological content to the industry in, primarily Scandinavia and Europe, but also USA and Asia. The companies have a considerable amount of own manufacturing and proprietary products, as well as technical trading companies. Important product areas include filters, hydraulics, auto repair, tools & transmission, industrial springs, water & wastewater and lighting. The business area has a strong market position in the Nordic region.
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 781 | 643 | 21% | 2,970 | 2,367 | 25% |
| EBITA | 116 | 108 | 7% | 453 | 382 | 19% |
| EBITA margin, % | 14.9 | 16.8 | 15.3 | 16.1 |
Net sales increased by 21% during the fourth quarter to SEK 781 million (643). Comparable units increased by 10%, acquisitions contributed with 7% and currency movements had a positive impact of 4%.
Demand during the quarter was overall higher than during the corresponding period previous year, even though the majority of companies in the business area had a lower order intake. The positive trend came from companies with customers in the medical technology and pharmaceuticals segment as well as the automotive aftermarket segment. Order intake was 3% lower than invoicing during the quarter.
EBITA increased during the fourth quarter by 7% to SEK 116 million (108), corresponding to an EBITA margin of 14.9% (16.8%). Comparable units decreased by 1%, acquisitions contributed with 6% and currency movements had a positive impact of 2%.
The lower EBITA margin is primarily explained by nonrecurring items, among others related to acquisitions, but also by a somewhat weaker gross margin for comparable units.
Companies in this business area are mainly technical trading companies and offer a wide range of technically advanced components and systems for industrial production and maintenance, as well as medical technology equipment. The products consist mainly of consumables. Its customers exist in the following segments: engineering, healthcare, construction and infrastructure. The product areas include hydraulics and industrial equipment, chemical technology and fasteners. The business area has a strong market position in the Nordic countries.
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 1,514 | 1,192 | 27% | 5,396 | 4,473 | 21% |
| EBITA | 227 | 184 | 23% | 867 | 733 | 18% |
| EBITA margin, % | 15.0 | 15.4 | 16.1 | 16.4 |
Net sales increased by 27% during the fourth quarter to SEK 1,514 million (1,192). Comparable units increased by 16%, acquisitions contributed with 9% and currency movements had a positive impact of 2%.
Demand during the quarter was stronger than in the corresponding period previous year, with an order growth in most of the companies. The segment for medical technology and pharmaceuticals showed the strongest performance compared to the corresponding period previous year. Order intake was 1% lower than invoicing during the quarter.
EBITA increased during the fourth quarter by 23% to SEK 227 million (184), corresponding to an EBITA margin of 15.0% (15.4%). Comparable units increased by 12%, acquisitions contributed with 9% and currency movements had a positive impact of 2%.
The weaker EBITA margin was primarily attributable to a somewhat lower gross margin for comparable units.
Companies in this business area sell measurement instruments, measurement systems, sensors, control and regulating technology, and monitoring equipment for various industries. All of the business area's companies have proprietary products based on advanced technological solutions and own development, design and manufacturing. Its customers exist in a variety of areas, such as various types of manufacturing industries like electronics, vehicles and energy. Companies in this business area work globally and have the entire world as the market for their products, with established production and sales companies on six continents.
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 821 | 622 | 32% | 2,949 | 2,372 | 24% |
| EBITA | 142 | 112 | 27% | 535 | 428 | 25% |
| EBITA margin, % | 17.3 | 18.0 | 18.1 | 18.0 |
Net sales increased by 32% during the fourth quarter to SEK 821 million (622). Comparable units increased by 10%, acquisitions contributed with 13% and currency movements had a positive impact of 9%.
Overall, demand during the quarter was somewhat lower than in the corresponding period previous year, with order growth in approximately half of the companies. A strong trend was noted, among others, for companies with customers in the energy sector. Order intake was 2% higher than invoicing during the quarter.
EBITA increased during the fourth quarter by 27% to SEK 142 million (112), corresponding to an EBITA margin of 17.3% (18.0%). Comparable units increased by 8%, acquisitions contributed with 5% and currency movements had a positive impact of 14%.
The lower EBITA margin was primarily attributable to a temporary relatively low margin in newly acquired companies, among others as a result of acquisition costs.
The companies in this business area offer custom-manufactured niche products, design solutions, aftermarket service and assembly, and customisation. They have a considerable amount of own manufacturing and proprietary products. Customer segments include construction and infrastructure, engineering and commercial vehicles. Examples of product areas are springs, piston rings, press work, valve channels, pipes and pipe systems. The individual companies all have strong market positions in the UK, and most are market leaders in their respective niches
| 2022 | 2021 | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Change | Jan-Dec | Jan-Dec | Change |
| Net sales | 480 | 360 | 33% | 1,994 | 1,467 | 36% |
| EBITA | 51 | 32 | 59% | 231 | 158 | 46% |
| EBITA margin, % | 10.6 | 8.9 | 11.6 | 10.8 |
Net sales increased by 33% during the fourth quarter and amounted to SEK 480 million (360). Comparable units increased by 9%, acquisitions contributed with 19% and currency movements had a positive impact of 5%.
Demand during the quarter was overall lower than during the corresponding period previous year, even though nearly half of the companies increased their order intake. A good demand was exhibited, for example, for companies with customers in the aviation industry and energy segment. But the trend for some companies with customers in infrastructure and construction, as well as the marine segment, counteracted this.
Order intake was 10% lower than invoicing during the quarter.
EBITA increased during the fourth quarter by 59% to SEK 51 million (32), corresponding to an EBITA margin of 10.6% (8.9%). Comparable units increased by 31%, acquisitions contributed with 19% and currency movements had a positive impact of 9%.
The improved EBITA margin is primarily explained by a positive organic growth of gross margin and by weak comparison figures previous year with negative nonrecurring items in a couple of companies.
Shareholders' equity amounted to SEK 12,773 million (10,303) and the equity ratio to 44% (47%). Cash and cash equivalents amounted to SEK 1,589 million (1,460). In addition to that, there were unutilised credit commitments of SEK 4,985 million (4,981). Interest-bearing net debt amounted to SEK 8,580 million (5,489) at the end of the quarter. The increase compared to previous year is primarily attributable to a high rate of acquisition during the last year and a somewhat lower operating cash flow. The net debt/equity ratio was 67% (53%) at the end of the period. Net debt in relation to EBITDA was 1.8x (1.4x).
Indutrade's financing is primarily managed by the Parent Company and it consists of loans from financial institutions, corporate bonds and commercial paper programmes.
During the quarter, unsecured bond loans totalling 1,400 million with durations between 2 and 4 years were issued, primarily for the purpose of financing acquisitions.
At the end of the year, the Parent Company's short-term borrowing amounted to SEK 1,475 million and long-term unutilised credit facilities amounted to SEK 3,500 million.
1) Pertains to the Parent Company, which is responsible for most of the Group's financing. Excluding leasing according to IFRS 16.
The trend from earlier quarters with increases in inventory dampened during the quarter. Cash flow from operating activities was, however, lower compared to the corresponding period previous year and amounted to SEK 850 million (901). The deterioration was primarily attributable to higher working capital, mostly associated with disruptions in the supply chains. Because of the challenges in supply chains, working capital efficiency (measured as working capital in relation to sales moving 12 months for comparable units) deteriorated compared to the corresponding period previous year.
Cash flow from operating activities amounted to SEK 2,372 million (2,853) for the full year. Cash flow after net capital expenditures in intangible noncurrent assets and in property, plant and equipment (excluding company acquisitions) amounted to SEK 1,874 million (2,496).
The Group's net capital expenditures, excluding company acquisitions, totalled SEK 498 million (357). Depreciation of property, plant and equipment totalled SEK 734 million (639). Investments in company acquisitions amounted to SEK 2,541 million (1,592). In addition, payments pertaining to previous years' acquisitions totalled SEK 287 million (75). Divestments amounted to SEK 2 million (7).
In cash flow from operating activities, depreciation of leased assets in the amount of SEK 408 million (352) has been added back during the year in accordance with IFRS 16. Lease amortisation is reported as cash flow from financing activities.
The number of employees was 9,128 at the end of the period, compared with 8,185 at the start of the year.
The Group acquired the following companies, which are consolidated for the first time in 2022.
| Month acquired |
Acquisitions | Business area | Net sales/SEK m* | No. of employees* |
|---|---|---|---|---|
| January | Autoroll UK Ltd | UK | 67 | 31 |
| February | NTi Audio AG | Measurement & Sensor Technology | 90 | 43 |
| April | Stabalux GmbH | Fluids & Mechanical Solutions | 40 | 16 |
| April | PMH International AB | Industrial Components | 140 | 26 |
| May | acti-Chem A/S | Flow Technology | 50 | 15 |
| May | Prodia AB | Industrial Components | 50 | 11 |
| June | Oscar Medtec AB | Industrial Components | 70 | 29 |
| July | Primed Fysio och Rehab AB | Industrial Components | 30 | 5 |
| July | Beck Sensortechnik GmbH | Measurement & Sensor Technology | 130 | 80 |
| July | OCI B.V. | Benelux | 110 | 20 |
| August | Tebra Messen Industrie B.V. | Benelux | 52 | 29 |
| September | CaTec B.V. | Benelux | 100 | 14 |
| October | Ingenjörsfirman Geotech AB | Industrial Components | 100 | 44 |
| November | Bramming Plast-Industri A/S | Fluids & Mechanical Solutions | 500 | 397 |
| November | Palas GmbH | Measurement & Sensor Technology | 270 | 102 |
| December | Armaturen Aichhorn GmbH | DACH | 65 | 17 |
| Total | 1,864 | 879 |
*) Estimated annual sales and number of employees at the time of acquisition.
Further information about completed company acquisitions can be found on page 21 of this interim report.
On 3 January, Sax Lift A/S was acquired, on 10 January, Hobe GmbH was acquired and on 19 January, Siersema Komponenten Service B.V. was acquired. For more information, please see page 22.
The main functions of Indutrade AB are to take responsibility for business development, talent development, sustainability, acquisitions, financing, business control, analysis and communication. The Parent Company's net sales, which consist entirely of internal invoicing of services, amounted to SEK 11 million (9) for the full year. The Parent Company's financial fixed assets consist mainly of shares in subsidiaries. During 2022, the Parent Company acquired shares in eleven companies. The Parent Company has not made any major investments in intangible assets or in property, plant and equipment. The number of employees as of 31 December was 21 (20).
The Indutrade Group conducts business in some 30 countries, on six continents, via more than 200 companies. This diversification, together with a large number of customers in various industries and a large number of suppliers, mitigates the business and financial risks. Besides the risks and uncertainties described in the Indutrade Annual Report for 2021, Indutrade has assessed that no additional significant risks or uncertainties have arisen or dissipated.
As a consequence of Russia's invasion of Ukraine, Indutrade has stopped all business activities with companies in Russia and Belarus. The direct exposure to these countries is very limited and the Group does not have any subsidiaries or employees in Russia, Ukraine or Belarus. During 2021, net sales to these countries accounted for less than 1% of Indutrade's total sales. Also, the indirect exposure is assessed as limited.
Since the Parent Company is responsible for the Group's financing, it is exposed to financing risk. The Parent Company's other activities are not exposed to risks other than indirectly via subsidiaries. For a more detailed account of risks that affect the Group and Parent Company, please see the 2021 Annual Report.
No transactions took place during the period between Indutrade and related parties that have significantly affected the Company's financial position or result of operations.
Indutrade reports in accordance with International Financial Reporting Standards (IFRS). This interim report has been prepared in accordance with IAS 34 and RFR 1. The Parent Company applies RFR 2. The same accounting principles and calculation methods have been used for the Group and Parent Company in this report as those in the most recent annual report. There are no new IFRSs or IFRIC pronouncements endorsed by the EU that are applicable for Indutrade or that have a significant impact on the Group's result of operations and position in 2022.
The AGM will be held on 29 March 2023. The Board of Directors proposes a dividend of SEK 2.60 (2.30) per share, which corresponds to SEK 947 million (838). The proposed dividend is in line with Indutrade's policy that the dividend shall, over time, amount to between 30% and 50% of the net profit.
The proposed record date for the dividend is 31 March 2023. Provided that the AGM resolves in accordance with the Board's proposal, payment of the dividend is expected to be made on 5 April 2023.
The Nomination Committee proposes re-election of Katarina Martinson as Chair of the Board at the 2023 Annual General Meeting. The Committee also proposes re-election of the Board members Bo Annvik, Susanna Campbell, Anders Jernhall, Kerstin Lindell, Ulf Lundahl, Krister Mellvé and Lars Pettersson. Bengt Kjell has announced that he is not available for re-election.
Stockholm, 2 February 2023 Indutrade AB (publ)
Bo Annvik President and CEO
This report has not been reviewed by the company's auditors.
The information in this report is such that Indutrade AB is obligated to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication by the agency of the following contact persons on 2 February 2023 at 7.30 CET.
For further information, please contact: Bo Annvik, President and CEO, tel.: +46 8 703 03 00, Patrik Johnson, CFO, tel. +46 70 397 50 30
A webcast of the report will be presented on 2 February at 9.30 CET via the following link: https://ir.financialhearings.com/indutrade-q4-2022
To participate in the conference call and ask questions, please register yourself via the link below. Once you have registered, you will be given the telephone number and a conference ID to login to the conference call.
https://conference.financialhearings.com/teleconference/?i d=5004898
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 7,228 | 5,726 | 27,016 | 21,715 |
| Cost of goods sold | -4,708 | -3,673 | -17,654 | -14,106 |
| Gross profit | 2,520 | 2,053 | 9,362 | 7,609 |
| Development costs | -98 | -71 | -334 | -258 |
| Selling costs | -1,087 | -904 | -3,975 | -3,279 |
| Administrative expenses | -423 | -319 | -1,560 | -1,231 |
| Other operating income and expenses | 39 | -24 | 127 | -16 |
| Operating profit | 951 | 735 | 3,620 | 2,825 |
| Net financial items | -66 | -22 | -180 | -100 |
| Profit before taxes | 885 | 713 | 3,440 | 2,725 |
| Income Tax | -208 | -189 | -759 | -628 |
| Net profit for the period | 677 | 524 | 2,681 | 2,097 |
| Net profit, attributable to: | ||||
| Equity holders of the parent company | 679 | 523 | 2,682 | 2,095 |
| Non-controlling interests | -2 | 1 | -1 | 2 |
| 677 | 524 | 2,681 | 2,097 | |
| EBITA | 1,081 | 836 | 4,098 | 3,202 |
| Operating profit includes: | ||||
| Amortisation of intangible assets 1) | -143 | -113 | -524 | -419 |
| of which attributable to acquisitions | -130 | -101 | -478 | -377 |
| Depreciation of property, plant and equipment | -197 | -160 | -734 | -639 |
| Earnings per share before dilution, SEK | 1.86 | 1.44 | 7.36 | 5.76 |
| Earnings per share after dilution, SEK | 1.86 | 1.44 | 7.36 | 5.75 |
| 1) Excluding impairment losses |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net profit for the period | 677 | 524 | 2,681 | 2,097 |
| Other comprehensive income | ||||
| Items that can be reversed into income statement | ||||
| Fair value adjustment of hedge instruments | 8 | 0 | 4 | 1 |
| Tax attributable to fair value adjustments | -2 | 0 | -1 | 0 |
| Exchange rate differences | 134 | 65 | 516 | 203 |
| Items that cannot be reversed into income statement | ||||
| Actuarial gains/losses | 82 | 54 | 137 | 54 |
| Tax on actuarial gains/losses | -18 | -11 | -29 | -11 |
| Other comprehensive income for the period, net of tax | 204 | 108 | 627 | 247 |
| Total comprehensive income for the period | 881 | 632 | 3,308 | 2,344 |
| Total comprehensive income, attributable to: | ||||
| Equity holders of the parent company | 883 | 631 | 3,309 | 2,342 |
| Non-controlling interests | -2 | 1 | -1 | 2 |
| 2022 | 2021 | |
|---|---|---|
| SEK million | 31-Dec | 31-Dec |
| Goodwill | 7,649 | 5,439 |
| Other intangible assets | 4,408 | 3,331 |
| Property, plant and equipment | 4,045 | 3,385 |
| Financial assets | 160 | 204 |
| Inventories | 5,605 | 4,010 |
| Trade receivables | 4,452 | 3,458 |
| Other receivables | 954 | 713 |
| Cash and cash equivalents | 1,589 | 1,460 |
| Total assets | 28,862 | 22,000 |
| Equity | 12,773 | 10,303 |
| Non-current interest-bearing liabilities and pension liabilities | 7,903 | 5,536 |
| Other non-current liabilities and provisions | 1,300 | 976 |
| Current interest-bearing liabilities | 2,266 | 1,413 |
| Trade payables | 1,870 | 1,597 |
| Other current liabilities | 2,750 | 2,175 |
| Total equity and liabilities | 28,862 | 22,000 |
| Attributable to equity holders of the parent company SEK million |
2022 31-Dec |
2021 31-Dec |
|---|---|---|
| Opening equity | 10,292 | 8,624 |
| Total comprehensive income for the period | 3,309 | 2,342 |
| New issues | 11 | 48 |
| Dividend 1) | -837 | -655 |
| Hedging of incentive programme | -44 | -80 |
| Share-based payments | 32 | 13 |
| Acquisition of non-controlling interests | -4 | - |
| Closing equity | 12,759 | 10,292 |
1) Dividend per share for 2021 (2020) was SEK 2,30 (1,80).
| Equity, attributable to: | ||
|---|---|---|
| Equity holders of the parent company | 12,759 | 10,292 |
| Non-controlling interests | 14 | 11 |
| 12,773 | 10,303 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Operating profit | 951 | 735 | 3,620 | 2,825 |
| Non-cash items | 313 | 305 | 1,220 | 1,080 |
| Interests and other financial items, net | -67 | -11 | -146 | -72 |
| Paid tax | -193 | -180 | -764 | -638 |
| Change in working capital | -154 | 52 | -1,558 | -342 |
| Cash flow from operating activities | 850 | 901 | 2,372 | 2,853 |
| Net capital expenditures in non-current assets | -161 | -129 | -498 | -357 |
| Company acquisitions and divestments | -1,506 | -948 | -2,826 | -1,660 |
| Change in other financial assets | 1 | -3 | 7 | 17 |
| Cash flow from investing activities | -1,666 | -1,080 | -3,317 | -2,000 |
| Debt/repayment of debt, net | 1,370 | 685 | 1,817 | 407 |
| Dividend paid out | - | - | -837 | -655 |
| New issues | - | 8 | 11 | 48 |
| Cash flow from financing activities | 1,370 | 693 | 991 | -200 |
| Cash flow for the period | 554 | 514 | 46 | 653 |
| Cash and cash equivalents at start of period | 1,024 | 930 | 1,460 | 758 |
| Exchange rate differences | 11 | 16 | 83 | 49 |
| Cash and cash equivalents at end of period | 1,589 | 1,460 | 1,589 | 1,460 |
| 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|
| Moving 12 mos | 31-Dec | 31-Dec | 31-Dec | 31-Dec |
| Net sales, SEK million | 27,016 | 21,715 | 19,217 | 18,411 |
| Sales growth, % | 24 | 13 | 4 | 9 |
| EBITA, SEK million | 4,098 | 3,202 | 2,615 | 2,330 |
| EBITA margin, % | 15.2 | 14.7 | 13.6 | 12.7 |
| Capital employed at end of period, SEK million | 21,353 | 15,792 | 13,512 | 13,300 |
| Capital employed, average, SEK million | 18,111 | 14,516 | 13,541 | 12,416 |
| Return on capital employed, % 1) | 23 | 22 | 19 | 19 |
| Equity, average, SEK million | 11,272 | 9,297 | 7,899 | 6,715 |
| Return on equity, % 1) | 24 | 23 | 21 | 22 |
| Interest-bearing net debt at end of period, SEK million | 8,580 | 5,489 | 4,878 | 6,130 |
| Net debt/equity ratio, % | 67 | 53 | 56 | 85 |
| Net debt/EBITDA, times | 1.8 | 1.4 | 1.5 | 2.1 |
| Equity ratio, % | 44 | 47 | 48 | 41 |
| Average number of employees | 8,483 | 7,715 | 7,349 | 7,167 |
| Number of employees at end of period | 9,128 | 8,185 | 7,270 | 7,357 |
| Attributable to equity holders of the parent company | ||||
| Key ratios per share | ||||
| Earnings per share before dilution, SEK | 7.36 | 5.76 | 4.60 | 4.09 |
| Earnings per share after dilution, SEK | 7.36 | 5.75 | 4.59 | 4.09 |
| Equity per share, SEK | 35.02 | 28.26 | 23.72 | 19.74 |
| Cash flow from operating activities per share, SEK | 6.51 | 7.84 | 7.66 | 5.30 |
| Average number of shares before dilution, '000 | 364,270 | 363,921 | 362,721 | 362,565 |
| Average number of shares after dilution, '000 | 364,303 | 364,180 | 363,320 | 362,754 |
| Number of shares at the end of the period, '000 | 364,323 | 364,188 | 363,615 | 362,565 |
1) Calculated on average capital and equity.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| Net sales, SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Benelux | 1,153 | 843 | 4,084 | 3,331 |
| DACH | 534 | 457 | 2,111 | 1,661 |
| Finland | 605 | 525 | 2,220 | 1,826 |
| Flow Technology | 1,370 | 1,109 | 5,407 | 4,301 |
| Fluids & Mechanical Solutions | 781 | 643 | 2,970 | 2,367 |
| Industrial Components | 1,514 | 1,192 | 5,396 | 4,473 |
| Measurement & Sensor Technology | 821 | 622 | 2,949 | 2,372 |
| UK | 480 | 360 | 1,994 | 1,467 |
| Parent company and Group items | -30 | -25 | -115 | -83 |
| Total | 7,228 | 5,726 | 27,016 | 21,715 |
| 2022 | 2021 | 2022 | 2021 | |
| EBITA, SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Benelux | 167 | 127 | 599 | 464 |
| DACH | 80 | 69 | 316 | 236 |
| Finland | 96 | 81 | 370 | 283 |
| Flow Technology | 222 | 168 | 882 | 668 |
| Fluids & Mechanical Solutions | 116 | 108 | 453 | 382 |
| Industrial Components | 227 | 184 | 867 | 733 |
| Measurement & Sensor Technology | 142 | 112 | 535 | 428 |
| UK | 51 | 32 | 231 | 158 |
| Parent company and Group items | -20 | -45 | -155 | -150 |
| Total | 1,081 | 836 | 4,098 | 3,202 |
| 2022 | 2021 | 2022 | 2021 | |
| EBITA margin, % | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Benelux | 14.5 | 15.1 | 14.7 | 13.9 |
| DACH | 15.0 | 15.1 | 15.0 | 14.2 |
| Finland | 15.9 | 15.4 | 16.7 | 15.5 |
| Flow Technology | 16.2 | 15.1 | 16.3 | 15.5 |
| Fluids & Mechanical Solutions | 14.9 | 16.8 | 15.3 | 16.1 |
| Industrial Components | 15.0 | 15.4 | 16.1 | 16.4 |
| Measurement & Sensor Technology | 17.3 | 18.0 | 18.1 | 18.0 |
| UK | 10.6 | 8.9 | 11.6 | 10.8 |
| 15.0 | 14.6 | 15.2 | 14.7 |
| 2022 | 2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| Net sales, SEK million | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Benelux | 1,153 | 1,012 | 970 | 949 | 843 | 823 | 864 | 801 |
| DACH | 534 | 552 | 521 | 504 | 457 | 424 | 409 | 371 |
| Finland | 605 | 565 | 545 | 505 | 525 | 462 | 453 | 386 |
| Flow Technology | 1,370 | 1,387 | 1,385 | 1,265 | 1,109 | 1,045 | 1,144 | 1,003 |
| Fluids & Mechanical Solutions | 781 | 714 | 753 | 722 | 643 | 596 | 603 | 525 |
| Industrial Components | 1,514 | 1,270 | 1,342 | 1,270 | 1,192 | 1,015 | 1,113 | 1,153 |
| Measurement & Sensor Technology | 821 | 749 | 692 | 687 | 622 | 570 | 610 | 570 |
| UK | 480 | 490 | 504 | 520 | 360 | 377 | 375 | 355 |
| Parent company and Group items | -30 | -32 | -29 | -24 | -25 | -22 | -19 | -17 |
| Total | 7,228 | 6,707 | 6,683 | 6,398 | 5,726 | 5,290 | 5,552 | 5,147 |
| 2022 | 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| EBITA, SEK million | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Benelux | 167 | 139 | 155 | 138 | 127 | 100 | 122 | 115 |
| DACH | 80 | 88 | 78 | 70 | 69 | 63 | 59 | 45 |
| Finland | 96 | 105 | 96 | 73 | 81 | 81 | 76 | 45 |
| Flow Technology | 222 | 224 | 236 | 200 | 168 | 175 | 185 | 140 |
| Fluids & Mechanical Solutions | 116 | 108 | 116 | 113 | 108 | 105 | 96 | 73 |
| Industrial Components | 227 | 204 | 218 | 218 | 184 | 167 | 196 | 186 |
| Measurement & Sensor Technology | 142 | 134 | 128 | 131 | 112 | 104 | 113 | 99 |
| UK | 51 | 53 | 59 | 68 | 32 | 43 | 45 | 38 |
| Parent company and Group items | -20 | -20 | -63 | -52 | -45 | -28 | -49 | -28 |
| Total | 1,081 | 1,035 | 1,023 | 959 | 836 | 810 | 843 | 713 |
| 2022 | 2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| EBITA margin, % | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar |
| Benelux | 14.5 | 13.7 | 16.0 | 14.5 | 15.1 | 12.2 | 14.1 | 14.4 |
| DACH | 15.0 | 15.9 | 15.0 | 13.9 | 15.1 | 14.9 | 14.4 | 12.1 |
| Finland | 15.9 | 18.6 | 17.6 | 14.5 | 15.4 | 17.5 | 16.8 | 11.7 |
| Flow Technology | 16.2 | 16.1 | 17.0 | 15.8 | 15.1 | 16.7 | 16.2 | 14.0 |
| Fluids & Mechanical Solutions | 14.9 | 15.1 | 15.4 | 15.7 | 16.8 | 17.6 | 15.9 | 13.9 |
| Industrial Components | 15.0 | 16.1 | 16.2 | 17.2 | 15.4 | 16.5 | 17.6 | 16.1 |
| Measurement & Sensor Technology | 17.3 | 17.9 | 18.5 | 19.1 | 18.0 | 18.2 | 18.5 | 17.4 |
| UK | 10.6 | 10.8 | 11.7 | 13.1 | 8.9 | 11.4 | 12.0 | 10.7 |
| 15.0 | 15.4 | 15.3 | 15.0 | 14.6 | 15.3 | 15.2 | 13.9 |
| 2022 | 2021 | ||||||
|---|---|---|---|---|---|---|---|
| 15.0 | 15.4 | 15.3 | 15.0 | 14.6 | 15.3 | 15.2 | 13.9 |
| 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Oct-Dec, SEK million | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 61 | 4 | 535 | 775 | 581 | 1,326 | 154 | 29 | -13 | 3,452 |
| Other Europe | 923 | 512 | 38 | 485 | 168 | 171 | 258 | 399 | -12 | 2,942 |
| Americas | 74 | 13 | 15 | 13 | 23 | 11 | 213 | 29 | -2 | 389 |
| Asia | 75 | 5 | 17 | 88 | 5 | 6 | 123 | 17 | -2 | 334 |
| Other | 20 | 0 | 0 | 9 | 4 | 0 | 73 | 6 | -1 | 111 |
| 1,153 | 534 | 605 | 1,370 | 781 | 1,514 | 821 | 480 | -30 | 7,228 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Over time | 13 | 64 | 0 | 0 | 83 | 0 | 66 | 0 | -1 | 225 |
| Point in time | 1,140 | 470 | 605 | 1,370 | 698 | 1,514 | 755 | 480 | -29 | 7,003 |
| 1,153 | 534 | 605 | 1,370 | 781 | 1,514 | 821 | 480 | -30 | 7,228 | |
| 2021 | ||||||||||
| Oct-Dec, SEK million | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 20 | 4 | 469 | 655 | 459 | 1,012 | 146 | 33 | -10 | 2,788 |
| Other Europe | 682 | 432 | 29 | 342 | 149 | 158 | 211 | 283 | -10 | 2,276 |
| Americas | 55 | 14 | 7 | 7 | 24 | 14 | 171 | 21 | -3 | 310 |
| Asia | 58 | 4 | 16 | 71 | 9 | 7 | 80 | 16 | -1 | 260 |
| Other | 28 | 3 | 4 | 34 | 2 | 1 | 14 | 7 | -1 | 92 |
| 843 | 457 | 525 | 1,109 | 643 | 1,192 | 622 | 360 | -25 | 5,726 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Over time | 13 | 78 | 0 | 0 | 26 | 9 | 30 | 0 | 0 | 156 |
| Point in time | 360 | -25 | 5,570 | |||||||
| 830 | 379 | 525 | 1,109 | 617 | 1,183 | 592 |
1) Parent company & Group items
FT - Flow Technology FM - Fluids & Mechanical Solutions
IC - Industrial Components MST - Measurement & Sensor Technology
| 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Jan-Dec, SEK million | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 131 | 17 | 1,940 | 2,947 | 2,227 | 4,732 | 569 | 118 | -47 | 12,634 |
| Other Europe | 3,394 | 2,016 | 151 | 1,930 | 612 | 586 | 994 | 1,649 | -39 | 11,293 |
| Americas | 212 | 49 | 31 | 49 | 95 | 54 | 820 | 106 | -15 | 1,401 |
| Asia | 286 | 27 | 56 | 443 | 27 | 22 | 425 | 102 | -10 | 1,378 |
| Other | 61 | 2 | 42 | 38 | 9 | 2 | 141 | 19 | -4 | 310 |
| 4,084 | 2,111 | 2,220 | 5,407 | 2,970 | 5,396 | 2,949 | 1,994 | -115 | 27,016 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Over time | 52 | 269 | 0 | 0 | 249 | 23 | 223 | 0 | -4 | 812 |
| Point in time | 4,032 | 1,842 | 2,220 | 5,407 | 2,721 | 5,373 | 2,726 | 1,994 | -111 | 26,204 |
| 4,084 | 2,111 | 2,220 | 5,407 | 2,970 | 5,396 | 2,949 | 1,994 | -115 | 27,016 | |
| 2021 | ||||||||||
| Jan-Dec, SEK million | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Nordic countries | 77 | 12 | 1,656 | 2,408 | 1,680 | 3,762 | 556 | 125 | -36 | 10,240 |
| Other Europe | 2,765 | 1,568 | 121 | 1,539 | 561 | 644 | 754 | 1,178 | -33 | 9,097 |
| Americas | 207 | 48 | 20 | 26 | 88 | 37 | 714 | 73 | -9 | 1,204 |
| Asia | 227 | 28 | 24 | 259 | 31 | 22 | 292 | 70 | -3 | 950 |
| Other | 55 | 5 | 5 | 69 | 7 | 8 | 56 | 21 | -2 | 224 |
| 3,331 | 1,661 | 1,826 | 4,301 | 2,367 | 4,473 | 2,372 | 1,467 | -83 | 21,715 | |
| Timing of revenue recognition | Benelux | DACH | Finland | FT | FM | IC | MST | UK | Elim.1) | Total |
| Over time | 37 | 284 | 0 | 0 | 69 | 30 | 152 | 0 | -1 | 571 |
| Point in time | 3,294 | 1,377 | 1,826 | 4,301 | 2,298 | 4,443 | 2,220 | 1,467 | -82 | 21,144 |
1) Parent company & Group items
FT - Flow Technology FM - Fluids & Mechanical Solutions
IC - Industrial Components MST - Measurement & Sensor Technology
All of the shares were acquired in Autoroll UK Ltd (UK), NTi Audio AG (Liechtenstein), Stabalux GmbH (Germany), PMH International AB (Sweden), acti-Chem A/S (Denmark), Prodia AB (Sweden), Oscar Medtec AB (Sweden), Beck Sensortechnik GmbH (Germany), Primed Fysio och Rehab AB (Sweden), OCI B.V. (Netherlands), Tebra Messen Industrie B.V. (Netherlands), CaTec B.V. (Netherlands), Ingenjörsfirman Geotech AB (Sweden), Bramming Plast-Industri A/S (Denmark), Palas GmbH (Germany) and Armaturen Aichhorn GmbH (Austria).
On 13 July, OCI B.V. (Netherlands) was acquired, with annual sales of SEK 110 million. OCI offers solutions for connecting energy and water grids from the main network to domestic homes, office buildings and industrial sites.
On 11 August, Tebra Messen Industrie B.V. (Netherlands) was acquired, with annual sales of SEK 52 million. Tebra offers domestic and international clients machine knives used in a range of different sectors and industries such as food processing, rubber, recycling, packaging and hygiene.
On 8 September, CaTec B.V. (Netherlands) was acquired, with annual sales of SEK 100 million. The company is a specialist in climate measurement technology, offering measuring instruments and sensors to customers in the Benelux region.
On 1 December, Armaturen Aichhorn GmbH (Austria) was acquired, with annual sales of SEK 65 million. Aichhorn is a technical trading company offering valves for industrial and infrastructure applications.
On 24 May, acti-Chem A/S (Denmark) was acquired, with annual sales of SEK 50 million. The company delivers sustainable water treatment solutions, managing and optimising quality of complex industrial process water.
On 1 April, Stabalux GmbH (Germany) was acquired, with annual sales of SEK 40 million. Stabalux is a manufacturer of profile systems for curtain wall facades. The customer offering includes modular systems with profiles made of steel, aluminium, timber, or bamboo.
On 17 November, the acquisition of Bramming Plast-Industri A/S (Denmark) was completed, with annual sales of SEK 500 million. BPI manufactures customer specific and technology-based engineered foam solutions.
On 7 April, PMH International AB (Sweden) was acquired, with annual sales of SEK 140 million. PMH is a specialised technical trading company operating in the market segments lifting and material handling equipment as well as industrial/storage halls.
On 31 May, Prodia AB (Sweden) was acquired, with annual sales of SEK 50 million. Prodia is a provider of drug tests and offers a wide range of rapid tests and laboratory analyses.
On 13 June, Oscar Medtec AB (Sweden) was acquired, with annual sales of SEK 70 million. Oscar Medtec is a supplier of medical refrigerators and examination furniture, such as examination tables, testing chairs and storage solutions.
On 7 July, Primed Fysio och Rehab AB (Sweden) was acquired, with annual sales of SEK 30 million. Primed is a Swedish supplier of professional physiotherapy equipment. The products are used for physiotherapy aimed at patients with a comprehensive rehabilitation need.
On 31 October, Ingenjörsfirman Geotech AB (Sweden) was acquired, with annual sales of SEK 100 million. Geotech develops, manufactures and sells equipment for geotechnical investigations.
On 17 February, NTi Audio AG (Liechtenstein) was acquired, with annual sales of SEK 90 million. The company manufactures test and measurement equipment for acoustics, audio and vibration applications.
On 6 July, Beck Sensortechnik GmbH (Germany) was acquired, with annual sales of SEK 130 million. The company develops, manufactures and sells pressure switches and pressure transmitters to OEM customers, operating in the fields of HVAC, water and wastewater, medical technology and other industrial applications.
On 24 November, Palas GmbH (Germany) was acquired, with annual sales of SEK 270 million. Palas develops, manufactures and sells high precision equipment for generation, measurement and analysis of particles in the air.
On 4 January, Autoroll UK Ltd (UK) was acquired, with annual sales of SEK 67 million. The company manufactures and supplies steel industrial doors and aluminium roller garage doors.
Preliminary purchase price allocations
| SEK million | |||
|---|---|---|---|
| Purchase price, incl. contingent earn-out | |||
| payment totalling SEK 659 million | 3,445 | ||
| Acquired assets and | Book | Fair value | Fair |
| liabilities | value | adjustment | value |
| Goodwill | 38 | 1,892 | 1,930 |
| Agencies, trademarks, | |||
| customer relations, | |||
| licences, etc. | 4 | 1,335 | 1,339 |
| Property, plant and | |||
| equipment | 203 | 203 | |
| Financial assets | 1 | 1 | |
| Inventories | 320 | 320 | |
| Other current assets 1) | 272 | 272 | |
| Cash and cash | |||
| equivalents | 242 | 242 | |
| Deferred tax liability | -11 | -321 | -332 |
| Provisions including | |||
| pension liabilities | 0 | 0 | |
| Other operating | |||
| liabilities | -530 | -530 | |
| Non-controlling | |||
| interests | 0 | 0 | |
| 539 | 2,906 | 3,445 | |
1) Mainly trade receivables
Agencies, customer relationships, licences, etc. will be amortised over a period of 5–20 years, while trademarks are assumed to have indefinite useful life. Trademarks are included at a value of SEK 76 million (29).
Indutrade typically uses an acquisition structure entailing a base level of consideration plus a contingent earn-out payment. Initially, the contingent earn-out payment is valued at the present value of the likely outcome, which for the acquisitions made during the year amounts to SEK 659 (403) million. The contingent earnout payments fall due for payment within three years and can amount to a maximum of SEK 737 million (449). If the conditions are not met, the outcome can be in the range of SEK 0-737 million.
Transaction costs during the year totalled SEK 15 million (21) and are included in Other income and expenses in the income statement. Contingent earn-out payments were restated in the amount of SEK 142 million (64). The effect is reported under Other income and expenses in the amount of SEK 138 million (62) and under Net financial items in the amount of SEK 4 million (2).
The acquisition calculations for Alflow Scandinavia A/S, SILROC CZ, a.s, Italprotec Industries S.r.l., Dewaco Oy, Klay Instruments B.V., Svenssons i Tenhult AB and North West Metal Sections Ltd that were acquired during the fourth quarter of 2021 have now been finalised. No significant adjustments have been made to the calculations. For other acquisitions, the acquisition calculations are preliminary. Indutrade regards the calculations as preliminary during the time that uncertainty exists with respect to, for example, the outcome of guarantees in the acquisition agreements concerning inventories and trade receivables.
SEK million
| Purchase price, incl. contingent earn-out payments | 3,445 |
|---|---|
| Purchase price not paid out | -662 |
| Cash and cash equivalents in acquired companies | -242 |
| Payments pertaining to previous years´acquisitions | 287 |
| Total cash flow impact | 2,828 |
| SEK million | Net sales | EBITA | |||
|---|---|---|---|---|---|
| Business area | Oct-Dec | Jan-Dec | Oct-Dec | Jan-Dec | |
| Benelux | 58 | 147 | 16 | 34 | |
| DACH | 15 | 128 | 2 | 22 | |
| Finland | 14 | 120 | 1 | 21 | |
| Flow Technology | 12 | 148 | 4 | 21 | |
| Fluids & Mechanical | |||||
| Solutions | 48 | 249 | 6 | 47 | |
| Industrial | |||||
| Components | 107 | 264 | 16 | 48 | |
| Measurement & | |||||
| Sensor Technology | 80 | 227 | 6 | 32 | |
| UK | 67 | 360 | 6 | 51 | |
| Effect on Group | 401 | 1,643 | 57 | 276 | |
| Acquisitions carried | |||||
| out in 2021 | 100 | 997 | 16 | 177 | |
| Acquisitions carried | |||||
| out in 2022 | 301 | 646 | 41 | 99 | |
| Effect on Group | 401 | 1,643 | 57 | 276 |
If all acquired units had been consolidated as from 1 January 2022, net sales for the year would have amounted to SEK 28,176 million, and EBITA would have totalled SEK 4,270 million.
On 3 January, Sax Lift A/S was acquired, with annual sales of SEK 130 million. Sax Lift manufactures standard and custom-made scissor lift tables.
On 10 January, Hobe GmbH was acquired, with annual sales of SEK 80 million. Hobe is a niche manufacturer of micro precision tools for the shaping of interior profiles in very small bores.
On 19 January, Siersema Komponenten Service B.V was acquired, with annual sales of SEK 390 million. SKS is a specialised technical trading company offering high-quality, innovative and durable flow technology components to the food and pharmaceutical industries.
| Number of shares at the beginning of the year | 364,188,000 |
|---|---|
| Number of newly subscribed shares 1) | 135,000 |
| Total number of shares outstanding after new issues | 364,323,000 |
1) Attributable to LTI 2017. The programme has ended.
The 2021 and 2022 AGMs resolved on new incentive programmes. LTIP 2021 covers around 235 employees and is aimed at senior executives and other key employees. It requires own investment and it consists of performance shares. The scope of the programme is, at most, 650,000 shares in Indutrade, which corresponds to approximately 0.18% of all shares and votes.
LTIP 2022 covers around 265 employees and is aimed at senior executives and other key employees. LTIP 2022 requires own investment and it consists of performance shares. The scope of the programme is, at most, 425,000 shares in Indutrade, which corresponds to approximately 0.12% of all shares and votes.
For both programmes, the participant shall receive performance shares provided that the employment is not terminated, the investment shares have been retained and the performance targets have been fulfilled. Performance targets are based on the development of earnings per share during the performance period.
During the year, SEK 32 million (13) (excluding social security contributions) were expensed as a result of the programme.
| Outstanding programme |
Number of investment shares |
Corresponding maximum number of performance shares |
Proportion of total shares |
Vesting period |
|---|---|---|---|---|
| LTIP 2021 | 116,735 | 373,234 | 0.1% | Programme launch June 2021 – interim report publication first quarter 2024 |
| LTIP 2022 | 57,500 | 186,915 | 0.1% | Programme launch May 2022 – interim report publication first quarter 2025 |
| 31 Dec 2022, SEK million | Interest rate swaps and currency forward contracts in hedge accounting |
Amortised cost |
Holdings of shares and participation in unlisted companies |
Contingent earn-out payments |
Financial liabilities measured at amortised cost |
Total carrying amount |
Fair value |
|---|---|---|---|---|---|---|---|
| Valuation classification | Level 2 | Level 3 | Level 3 | ||||
| Other shares and participations | - | - | 13 | - | - | 13 | 13 |
| Trade receivables | - | 4,452 | - | - | - | 4,452 | 4,452 |
| Other receivables | 5 | 24 | - | - | - | 29 | 29 |
| Cash and cash equivalents | - | 1,589 | - | - | - | 1,589 | 1,589 |
| Total | 5 | 6,065 | 13 | - | - | 6,083 | 6,083 |
| Non-current interest-bearing | |||||||
| liabilities | - | - | - | 979 | 6,681 | 7,660 | 7,626 |
| Current interest-bearing liabilities | - | - | - | 241 | 2,025 | 2,266 | 2,266 |
| Trade payables | - | - | - | - | 1,870 | 1,870 | 1,870 |
| Other liabilities | 2 | - | - | - | - | 2 | 2 |
| Total | 2 | - | - | 1,220 | 10,576 | 11,798 | 11,764 |
| 31 Dec 2021, SEK million | Interest rate swaps and currency forward contracts in hedge accounting |
Amortised cost |
Holdings of shares and participation in unlisted companies |
Contingent earn-out payments |
Financial liabilities measured at amortised cost |
Total carrying amount |
Fair value |
|---|---|---|---|---|---|---|---|
| Valuation classification | Level 2 | Level 3 | Level 3 | ||||
| Other shares and participations | - | - | 14 | - | - | 14 | 14 |
| Trade receivables | - | 3,458 | - | - | - | 3,458 | 3,458 |
| Other receivables | 3 | 26 | - | - | - | 29 | 29 |
| Cash and cash equivalents | - | 1,460 | - | - | - | 1460 | 1,460 |
| Total | 3 | 4,944 | 14 | - | - | 4,961 | 4,961 |
| Non-current interest-bearing | |||||||
| liabilities | - | - | - | 600 | 4,586 | 5,186 | 5,199 |
| Current interest-bearing liabilities | - | - | - | 261 | 1,152 | 1,413 | 1,413 |
| Trade payables | - | - | - | - | 1,597 | 1,597 | 1,597 |
| Other liabilities | 5 | - | - | - | - | 5 | 5 |
| Total | 5 | - | - | 861 | 7,335 | 8,201 | 8,214 |
Financial instruments are measured at fair value, based on the classification of the fair value hierarchy: other observable data for assets and liabilities than quoted prices [level 2], non-observable market data [level 3].
No transfers were made between levels 2 and 3 during the period. Contingent earn-out payments have been discounted to present value using an interest rate that is judged to be in line with the market rate at the time of acquisition. Adjustments are not made on a regular basis for changes in the market interest rate, since the effects of these are judged to be negligible.
| Contingent earn-out payments | 2022 | 2021 |
|---|---|---|
| SEK million | 31-Dec | 31-Dec |
| Opening book value | 861 | 549 |
| Acquisitions during the year | 659 | 418 |
| Consideration paid | -235 | -73 |
| Reclassified via income statement | -139 | -62 |
| Interest expenses | 14 | 9 |
| Exchange rate differences | 60 | 20 |
| Closing book value | 1,220 | 861 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 11 | 9 | 11 | 9 |
| Gross profit | 11 | 9 | 11 | 9 |
| Administrative expenses | -43 | -37 | -146 | -132 |
| Operating profit | -32 | -28 | -135 | -123 |
| Financial income/expenses | 25 | 21 | 91 | 74 |
| Profit from participation in Group companies | 39 | 0 | 1,927 | 1,288 |
| Profit after financial items | 32 | -7 | 1,883 | 1,239 |
| Appropriations | 850 | 761 | 850 | 761 |
| Income Tax | -175 | -157 | -168 | -149 |
| Net profit for the period | 707 | 597 | 2,565 | 1,851 |
| Amortisation/depreciation of intangible assets and property, plant and equipment | 0 | 0 | -1 | 0 |
| 2022 | 2021 | |
|---|---|---|
| SEK million | 31-Dec | 31-Dec |
| Intangible assets | 1 | 0 |
| Property, plant and equipment | 2 | 1 |
| Financial assets | 9,785 | 6,971 |
| Current receivables | 10,939 | 8,746 |
| Cash and cash equivalents | 592 | 489 |
| Total assets | 21,319 | 16,207 |
| Equity | 9,956 | 8,254 |
| Untaxed reserves | 867 | 755 |
| Non-current interest-bearing liabilities and pension liabilities | 6,386 | 3,925 |
| Other non-current liabilities and provisions | 4 | 0 |
| Current interest-bearing liabilities | 3,710 | 3,037 |
| Current non-interest-bearing liabilities | 396 | 236 |
| Total equity and liabilities | 21,319 | 16,207 |
In this interim and Year-End report Indutrade presents Alternative Performance Measures (APMs) that complement the key financial ratios defined in IFRS. The company believes that these APMs provide valuable information to stakeholders, as they contribute to assessment of the company's performance, trends, ability to repay debt and invest in new business opportunities, and they reflect the Group's acquisition-intensive business model.
Since not all companies calculate their financial key ratios in the same way, they are not always comparable. They should therefore not be regarded as a substitute for the key ratios defined in IFRS. Following are definitions of Indutrade's key ratios, of which most are APMs.
Shareholders' equity plus interest-bearing net debt.
Net profit for the period attributable to owners of the parent divided by the average number of shares outstanding. Definition according to IFRS.
Net profit for the period attributable to owners of the parent divided by the average number of shares outstanding after dilution.
Operating profit before amortisation of intangible noncurrent assets arising in connection with company acquisitions (Earnings Before Interest, Tax and Amortisation). EBITA is the principal measure of the Group's earnings.
EBITA divided by net sales.
Operating profit before depreciation and amortisation (Earnings Before Interest, Tax, Depreciation and Amortisation).
Shareholders' equity attributable to owners of the parent divided by the number of shares outstanding.
Shareholders' equity divided by total assets.
Gross profit divided by net sales.
Interest-bearing liabilities including pension liability and estimated earn-outs for acquisitions, less cash and cash equivalents.
Purchases less sales of intangible non-current assets and of property, plant and equipment, excluding those included in acquisitions and divestments of subsidiaries and operations.
Interest-bearing net debt divided by shareholders' equity.
Interest-bearing net debt at the end of the period divided by EBITDA on a moving 12-month basis.
Net profit for the period on a moving 12-month basis divided by average shareholders' equity per month.
EBITA calculated on a moving 12-month basis divided by average capital employed per month.
Indutrade is an international technology and industrial business group that today consists of approximately 200 companies in some 30 countries, mainly in Europe. In a decentralised way, we work to provide sustainable profitable growth by developing and acquiring successful companies managed by passionate entrepreneurs. Our companies develop, manufacture, and sell components, systems and services with significant technical content in selected niches. Our value-based culture, where people make the difference, has been the foundation of our success since the start in 1978.
Customers can be found in a wide range of industries, including infrastructure, medical technology/pharmaceuticals, engineering, energy, water/wastewater and food.
The Group is structured into eight business areas: Benelux, DACH, Finland, Flow Technology, Fluids & Mechanical Solutions, Industrial Components, Measurement & Sensor Technology and UK.
• Average sales growth shall amount to a minimum of 10% per year over a business cycle. Growth is to be achieved organically as well as through acquisitions.
• The EBITA margin shall amount to a minimum of 14% (the previous goal was 12%) per year over a business cycle.
• The return on capital employed shall be a minimum of 20% per year on average over a business cycle.
Net debt/equity ratio
• The net debt/equity ratio should normally not exceed 100%.
Dividend payout ratio
• The dividend payout ratio shall range from 30% to 50% of net profit.
1)Financial year 2022
This is an unofficial translation of the original Swedish text. In the event of any discrepancy between the English translation and the Swedish original, the Swedish version shall govern.
Reg.no. 556017-9367. Box 6044, SE-164 06 Kista. Visiting address: Raseborgsgatan 9. Tel: +46 8 703 03 00 www.indutrade.com
Climate issues and reducing carbon dioxide emissions is a high priority for Indutrade. By joining the Science Based Targets initiative (SBTi), Indutrade has now formally committed to developing targets and lowering emissions in line with climate science.
Already today, Indutrade has set the overall target of being carbon neutral in Scope 1 & 2 by 2030. Living up to the requirements of SBTi involves calibrating the existing targets for Scope 1 & 2, defining targets for Scope 3 and developing a roadmap for having net zero emissions no later than 2050, which contributes to limiting global warming to under 1.5 degrees Celsius.
On 8 November, Indutrade announced that its Board of Directors had, in conjunction with its annual strategic review, decided to increase the target for EBITA margin for the Group to a minimum of 14% (the prior target was 12%) per year over a business cycle.
President and CEO Bo Annvik comments: "Indutrade has a strong platform for continued sustainable profitable growth. Our financial targets are ambitious and the increased EBITA margin target is assessed to have a good balance between profitability ambitions and ability to invest in growth initiatives. We will continue to deliver long-term and competitive value creation for our shareholders through organic improvements and profitable acquisitions."
The Capital Markets Day was held in Stockholm on 8 November 2022. During the Capital Markets Day, President and CEO Bo Annvik, along with members from the management team and other members of the Group, provided an update on Indutrade's strategy and priorities for continued sustainable profitable growth.
Presentations also included our sustainability work, acquisition strategy and review of some of our companies.
For more information and presentations, please visit: https://www.indutrade.com/investors--media/reports- presentations/capital-markets-day-2022/
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