Quarterly Report • Oct 26, 2022
Quarterly Report
Open in ViewerOpens in native device viewer
Experience a safer and more open world
Operating income
Earnings per share
| Third quarter | January-September | |||||
|---|---|---|---|---|---|---|
| 2021 | 2022 | Δ | 2021 | 2022 | Δ | |
| Sales, SEK M | 23,930 | 31,820 | 33% | 69,384 | 87,878 | 27% |
| Of which: | ||||||
| Organic growth | 1,576 | 3,741 | 14% | 6,661 | 10,351 | 14% |
| Acquisitions and divestments | 490 | 857 | 3% | 2,211 | 790 | 1% |
| Exchange-rate effects | –361 | 3,292 | 16% | –3,839 | 7,353 | 12% |
| Operating income (EBIT), SEK M | 3,392 | 4,973 | 47% | 10,168 | 13,380 | 32% |
| Operating margin (EBITA), % | 14.8% | 16.2% | 15.3% | 15.8% | ||
| Operating margin (EBIT), % | 14.2% | 15.6% | 14.7% | 15.2% | ||
| Income before tax, SEK M | 3,233 | 4,736 | 47% | 9,719 | 12,756 | 31% |
| Net income, SEK M | 2,392 | 3,552 | 48% | 7,858 | 9,567 | 22% |
| Operating cash flow, SEK M | 3,619 | 4,520 | 25% | 9,881 | 9,219 | –7% |
| Earnings per share, SEK | 2.15 | 3.20 | 48% | 7.07 | 8.61 | 22% |
Following a very strong sales development during the first half of 2022, the momentum continued during the third quarter with double-digit organic sales growth in most of our markets.
Our organic sales grew by 14%, complemented with 16% positive currency effects and 3% growth from M&A. Entrance Systems and Americas delivered very strong sales growth of 20% and 17% respectively, driven predominantly by a continued strong US market and price realization. Despite continued component shortages, Global Technologies achieved a very strong organic growth of 19% due to our launch of redesigned products and our continued recovery in the travel-related segments. EMEIA reported good organic growth of 4%, driven by very strong demand in Scandinavia and in most emerging markets. Although demand has improved in Southeast Asia and remained very strong in Pacific, organic sales in Asia Pacific were down by 2% as demand in China continued to be very weak.
Excluding an operating loss from divestments in 2021, our EBIT increased by 39% to SEK 4,973 M and the margin improved to 15.6% (15.0), driven by lower material headwind, continued operational efficiencies as well as a significant margin improvement in Global Technologies. Our operating cash flow in the quarter continued to improve, up 25% to SEK 4,520 M.
To accelerate our profitable growth, we are working with a number of strategic activities. One key activity is actively upgrading our installed base from mechanical to electromechanical solutions. We are leading this transition and are investing in new platforms and partner collaborations that, over time, will further strengthen our position in the industry. Our innovation efforts are paying off, and for the fourth consecutive quarter our sales of electromechanical products and solutions grew organically at double-digit rates and were up 16% in the quarter. This transition will also further improve the resilience of our business through more recurring sales and service, both of which achieved double-digit growth in the quarter.
We are continuing to execute our acquisition strategy, with six further acquisitions signed during the quarter, bringing the number of acquisitions closed this year to eleven by the end of September. In September, the U.S. Department of Justice (DoJ) announced that it will seek to block our proposed acquisition of the HHI division of Spectrum Brands. We strongly disagree with the DoJ's characterization of the acquisition and will vigorously contest in court this effort to oppose the transaction.
While growth-generating activities create value, focus on costs is critical. The demand remains strong in most markets, but due to weaker demand in some European markets in the quarter (mainly the UK, France and Benelux), some local organizations have initiated cost-reduction actions to protect their profitability. We have a strong track record of being agile, and we will continue to act in response to possible changes in market conditions.
Lastly, I would like to note that we will host our Capital Markets Day on 16 November 2022 in London, where we will provide an update on our strategy and will display exciting new products and solutions such as mobile credentials and connected doors.
Stockholm, 26 October 2022
Nico Delvaux President and CEO
Sales by quarter and last 12 months
Operating cash flow by quarter and last 12 months
The Group's sales increased by 33% to SEK 31,820 M (23,930). Organic growth amounted to 14% (7). Growth from acquisitions and divestments was 3% (2), of which 4% (4) were acquisitions and –1% (–1) were divestments. Exchangerates affected sales by 16% (–1).
The Group's operating income (EBIT) amounted to SEK 4,973 M (3,392), an increase of 47%. The corresponding operating margin was 15.6% (14.2). Excluding an operating loss of SEK 196 M for the CERTEGO divestment, the operating margin last year was 15.0%. Exchange-rates had an impact of SEK 538 M (–120) on EBIT. Operating income before amortizations from acquisitions (EBITA) amounted to SEK 5,139 M (3,539). The corresponding EBITA margin was 16.2% (14.8).
Net financial items amounted to SEK –237 M (–159). The Group's income before tax was SEK 4,736 M (3,233), an increase of 47% compared with last year. Exchange-rates had an impact of SEK 526 M (–109) on income before tax. The profit margin was 14.9% (13.5).
The estimated effective income tax rate on an annual basis and excluding items affecting comparability was 25% (26). Earnings per share amounted to SEK 3.20 (2.15), an increase of 48% compared with last year. Operating cash flow totaled SEK 4,520 M (3,619), which corresponds to a cash conversion of 0.95 (1.12). The net-debt/equity ratio at the end of the quarter was 0.35 (0.38).
The Group's sales for the first nine months of 2022 totaled SEK 87,878 M (69,384), representing an increase of 27%. Organic growth was 14% (11). Growth from acquisitions and divestments was 1% (4), of which 2% (5) came from acquisitions and –1% (–1) from divestments. Exchange-rates affected sales by 12% (–7).
The Group's operating income (EBIT) amounted to SEK 13,380 M (10,168), an increase of 32% compared with last year. The corresponding operating margin was 15.2% (14.7). Operating income before amortizations from acquisitions (EBITA) amounted to SEK 13,849 M (10,621). The corresponding EBITA margin was 15.8% (15.3).
Earnings per share amounted to SEK 8.61 (7.07), an increase of 22% compared with last year. Operating cash flow totaled SEK 9,219 M (9,881), which corresponds to a cash conversion of 0.72 (1.02).
A new manufacturing footprint program will be launched at the end of the first quarter of 2023. The closure of factories and offices in the restructuring program is expected to take place over a period of around two years.
Payments related to all restructuring programs amounted to SEK 81 M (130) during the quarter. The restructuring programs proceeded according to plan. At the end of the quarter provisions of SEK 469 M remained in the balance sheet for carrying out the programs.
Sales for the quarter in EMEIA totaled SEK 5,758 M (5,044), with organic growth of 4% (7). Sales growth was very strong in Scandinavia and Middle East/Africa/India, with strong growth in East Europe, good growth in DACH and stable development in Finland and South Europe. Sales declined in the UK, France and Benelux. Net sales growth from acquisitions and divestments was 5%. Operating income totaled SEK 825 M (572), which represents an operating margin (EBIT) of 14.3% (11.3). Excluding the operating loss of SEK 196 M for the CERTEGO divestment, the operating margin last year was 15.2%. Return on capital employed, on an annualized basis, amounted to 17.0% (15.2). Operating cash flow before non-cash items and interest paid totaled SEK 773 M (560).
Sales for the quarter in Americas totaled SEK 7,640 M (5,400), with organic growth of 17% (14). Sales growth was very strong in Access & High Security, Architectural Hardware, Electromechanical Solutions, Security Doors and US Residential and strong in US Smart Residential, Canada and Latin America. Sales growth from acquisitions was 0%. Operating income totaled SEK 1,600 M (1,112), which represents an operating margin (EBIT) of 20.9% (20.6). Return on capital employed, on an annualized basis, amounted to 32.1% (29.2). Operating cash flow before non-cash items and interest paid totaled SEK 1,612 M (997).
Sales for the quarter in Asia Pacific totaled SEK 2,918 M (2,271), with organic growth of –2% (–7). Sales growth was very strong in South East Asia, South Korea and Pacific, but declined significantly in China. Sales growth from acquisitions was 15%. Operating income totaled SEK 132 M (132), which represents an operating margin (EBIT) of 4.5% (5.8). Return on capital employed, on an annualized basis, amounted to 3.5% (7.2). Operating cash flow before non-cash items and interest paid totaled SEK 190 M (122).
Sales for the quarter in Global Technologies totaled SEK 5,142 M (3,705), with organic growth of 19% (7). Sales growth was very strong in Citizen ID, Identification Technology and Physical and Access Control, strong in Identity & Access Solutions and Extended Access and good in Secure Issuance. Sales growth in Global Solutions was very strong. Sales growth from acquisitions was 2%. Operating income totaled SEK 890 M (585), which represents an operating margin (EBIT) of 17.3% (15.8). Return on capital employed, on an annualized basis, amounted to 11.4% (10.1). Operating cash flow before non-cash items and interest paid totaled SEK 702 M (864).
Sales for the quarter in Entrance Systems totaled SEK 11,066 M (8,058), with organic growth of 20% (10). Sales growth was very strong in Residential, Industrial and Pedestrian and strong in Perimeter Security. Sales growth from acquisitions was 1%. Operating income totaled SEK 1,735 M (1,191), which represents an operating margin (EBIT) of 15.7% (14.8). Return on capital employed, on an annualized basis, amounted to 18.5% (15.0). Operating cash flow before non-cash items and interest paid totaled SEK 1,424 M (1,023).
Four acquisitions were consolidated during the quarter. The combined acquisition price for the businesses acquired during the year, including adjustments from prior-year acquisitions, amounted to SEK 4,085 M. The corresponding acquisition price on a cash and debt free basis totaled SEK 4,114 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amounted to SEK 2,799 M. Estimated deferred considerations for acquisitions made during the year amounted to SEK 363 M.
On September 15, 2022, it was announced by ASSA ABLOY that the US Department of Justice filed a complaint seeking to enjoin ASSA ABLOYs proposed acquisition of the HHI division of Spectrum Brands. ASSA ABLOY and Spectrum Brands strongly disagree with the US regulator's characterization of the proposed transaction and will vigorously contest in court this effort to oppose the transaction. As earlier announced, ASSA ABLOY and Spectrum Brands have agreed to extend their agreement for ASSA ABLOY to acquire the HHI division of Spectrum Brands to June 30, 2023.
On October 14, 2022, it was announced that ASSA ABLOY had formally filed its response to the U.S. Department of Justice´s ("DOJ") complaint to block the proposed acquisition of the Hardware and Home Improvement division ("HHI") of Spectrum Brands. In its formal response, the following can be noted: to fully resolve all the alleged competitive concerns surrounding the acquisition of HHI, ASSA ABLOY has initiated a sales process of Emtek and Smart Residential businesses in the U.S. and Canada. These businesses represented sales of about USD 350 M in 2021. Residential businesses outside the U.S. and Canada are not in scope to be divested. The proposed divestitures are dependent on our successful defense against the DOJ regarding the planned acquisition of HHI. ASSA ABLOY will remain fully committed to these excellent businesses during the process and all the businesses will continue to operate as normal.
On September 5, 2022, it was announced that ASSA ABLOY has signed an agreement to acquire Control iD, a leading developer of hardware and software solutions for access control and time & attendance in Brazil. Sales for 2021 amounted to about SEK 250 M. The acquisition is subject to regulatory approval and customary closing conditions and is expected to close during the fourth quarter of 2022.
On September 1, 2022, it was announced that ASSA ABLOY has signed an agreement to acquire VHS Plastik Metal, a leading manufacturer of hardware systems for windows and doors based in Turkey. Sales for 2021 amounted to about SEK 150 M. The acquisition was completed at the end of September.
On August 9, 2022, it was announced that ASSA ABLOY has acquired J Newton Enterprises Inc, a leading pedestrian door distributor and service company in Florida, USA. Sales for 2021 amounted to about SEK 150 M.
On August 3, 2022, it was announced that ASSA ABLOY has signed an agreement to acquire Alcea, a French provider of security supervision software and associated access control hardware that together with system partners provides total access management solutions. Sales for 2021 amounted to about SEK 200 M. The acquisition was completed in October.
ASSA ABLOY is accelerating efforts to reduce energy related carbon emissions. This complements our commitment to Science Based Targets, while also helping to mitigate the effects of surging energy prices. We are focusing on reducing energy consumption, as well as installing onsite-renewable energy generation.
We continue to focus on delivering our Sustainability Program running through to 2025. At our site in Salvador in Brazil, we have installed a new electroplating process with a focus on water efficiency. The installation saves over 36 million liters of water per year and reduces the site's water use by 78%.
Other operating income for the Parent company ASSA ABLOY AB totaled SEK 3,837 M (3,234) for the first nine months of the year. Operating income for the same period amounted to SEK –115 M (–30). Investments in tangible and intangible assets totaled SEK 10 M (4,220). Liquidity is good and the equity ratio is 41.0% (43.0).
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the last Annual Report have been applied. No new or amended standards with material impact on the Group´s financial reports have been applied for the first time in 2022.
This Report was prepared in accordance with IAS 34 'Interim Financial Reporting' and the Annual Accounts Act. The 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 18 of this Report. Information about how these measures have been calculated is available on the company's website www.assaabloy.com.
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 2021 appear on the company's website.
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.
ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY's operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group's financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest rate risk, credit risk, and risks associated with the Group's pension obligations.
Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general. The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group.
The Covid-19 pandemic has had a substantial business impact on ASSA ABLOY. The continued impact of the pandemic on the business is difficult to predict due to the uncertainty of market conditions, but the health and safety of our employees remains our first priority.
ASSA ABLOY has limited direct business exposure to Russia, Ukraine, and Belarus, but indirect business effects continue to be monitored closely.
For a more detailed description of particular risks and risk management, please see the 2021 Annual Report.
The guidance below relating to two key figures is provided to facilitate financial modeling but should not be viewed as forecasting market outlooks or ASSA ABLOY's business performance.
It is estimated that completed acquisitions and divestments, on a rolling 12 month basis at 30 September 2022, will have an effect of 3% on sales in the fourth quarter of 2022 versus the same period last year, while the effect on the operating margin is estimated to be dilutive in the fourth quarter of 2022.
On the basis of the currency rates on 30 September 2022, it is estimated that the weighted currency effects on sales in the fourth quarter of 2022 versus the same period last year will be 17%, while the effect on the operating margin is estimated to be accretive in the fourth quarter of 2022.
The Company's Auditors have not carried out any review of this Report for the third quarter of 2022.
Stockholm, 26 October 2022
Nico Delvaux President and CEO
A Capital Markets Day will be held on 16 November 2022 in London, UK.
The Year-end Report and Quarterly Report for the fourth quarter will be published on 3 February 2023.
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: [email protected]
ASSA ABLOY is holding a telephone and web conference at 09.30 on 26 October 2022
which can be followed online at www.assaabloy.com.
It is possible to submit questions by telephone on: 08–505 583 59, +44 333 300 9265 or +1 631 913 1422
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 26 October 2022.
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.21/2022
| CONDENSED INCOME STATEMENT | Q3 | Jan-Sep | ||
|---|---|---|---|---|
| SEK M | 2021 | 2022 | 2021 | 2022 |
| Sales | 23,930 | 31,820 | 69,384 | 87,878 |
| Cost of goods sold | -14,395 | -19,194 | -41,689 | -53,146 |
| Gross income | 9,535 | 12,626 | 27,695 | 34,732 |
| Selling, administrative and R&D costs | -6,143 | -7,657 | -17,532 | -21,366 |
| Share of earnings in associates | 0 | 4 | 5 | 14 |
| Operating income | 3,392 | 4,973 | 10,168 | 13,380 |
| Finance net | -159 | -237 | -449 | -624 |
| Income before tax | 3,233 | 4,736 | 9,719 | 12,756 |
| Tax on income | -841 | -1,184 | -1,862 | -3,189 |
| Net income for the period | 2,392 | 3,552 | 7,858 | 9,567 |
| Net income for the period attributable to: | ||||
| Parent company's shareholders | 2,393 | 3,551 | 7,858 | 9,563 |
| Non-controlling interests | 0 | 1 | 0 | 4 |
| Earnings per share | ||||
| Before and after dilution, SEK | 2.15 | 3.20 | 7.07 | 8.61 |
| Before and after dilution and excluding items affecting comparability, SEK | 2.15 | 3.20 | 7.07 | 8.61 |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOME | Q3 | Jan-Sep | ||
| SEK M | 2021 | 2022 | 2021 | 2022 |
| Net income for the period | 2,392 | 3,552 | 7,858 | 9,567 |
| Other comprehensive income: Items that will not be reclassified to profit or loss |
||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | 27 | 430 | 518 | 250 |
| Total | 27 | 430 | 518 | 250 |
| Items that may be reclassified subsequently to profit or loss | ||||
| Share of other comprehensive income of associates | 11 | 8 | -9 | -28 |
| Cashflow hedges and net investment hedges, net after tax | -5 | -15 | -15 | -6 |
| Exchange rate differences | 823 | 3,930 | 2,174 | 9,275 |
| Total | 830 | 3,924 | 2,151 | 9,242 |
| Total comprehensive income for the period | 3,250 | 7,905 | 10,527 | 19,059 |
| Total comprehensive income for the period attributable to: | ||||
| Parent company's shareholders | 3,250 | 7,904 | 10,526 | 19,054 |
| Non-controlling interests | 0 | 2 | 0 | 5 |
| CONDENSED BALANCE SHEET | 31 Dec | 30 Sep | |
|---|---|---|---|
| SEK M | 2021 | 2021 | 2022 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 76,336 | 74,524 | 88,314 |
| Property, plant and equipment | 8,753 | 8,325 | 10,079 |
| Right-of-use assets | 3,436 | 3,330 | 3,735 |
| Investments in associates | 652 | 636 | 652 |
| Other financial assets | 267 | 259 | 326 |
| Deferred tax assets | 1,264 | 1,363 | 1,200 |
| Total non-current assets | 90,707 | 88,438 104,305 | |
| Current assets | |||
| Inventories | 13,933 | 12,594 | 19,944 |
| Trade receivables | 15,844 | 15,163 | 21,009 |
| Other current receivables and investments | 5,165 | 5,074 | 6,523 |
| Cash and cash equivalents | 4,325 | 5,995 | 2,978 |
| Total current assets | 39,267 | 38,826 | 50,454 |
| TOTAL ASSETS | 129,975 | 127,264 154,759 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to Parent company's shareholders | 69,582 | 67,214 | 86,285 |
| Non-controlling interests | 9 | 8 | 13 |
| Total equity | 69,592 | 67,222 | 86,298 |
| Non-current liabilities | |||
| Long-term loans | 20,195 | 19,887 | 21,629 |
| Non-current lease liabilities | 2,433 | 2,320 | 2,631 |
| Deferred tax liabilities | 2,581 | 2,457 | 3,094 |
| Other non-current liabilities and provisions | 3,899 | 4,161 | 3,881 |
| Total non-current liabilities | 29,108 | 28,825 | 31,235 |
| Current liabilities | |||
| Short-term loans | 5,042 | 5,605 | 5,715 |
| Current lease liabilities | 1,082 | 1,081 | 1,209 |
| Trade payables | 9,527 | 8,547 | 10,582 |
| Other current liabilities and provisions | 15,625 | 15,985 | 19,721 |
| Total current liabilities | 31,276 | 31,217 | 37,226 |
| TOTAL EQUITY AND LIABILITIES | 129,975 | 127,264 154,759 | |
| CHANGES IN EQUITY | Equity attributable to: | ||
|---|---|---|---|
| Parent | Non | ||
| company's | controlling | Total | |
| SEK M | shareholders | interests | equity |
| Opening balance 1 January 2021 | 58,870 | 9 | 58,879 |
| Net income for the period | 7,858 | 0 | 7,858 |
| Other comprehensive income | 2,668 | 0 | 2,669 |
| Total comprehensive income | 10,526 | 0 | 10,527 |
| Dividend | -2,166 | -2 | -2,168 |
| Stock purchase plans | -16 | - | -16 |
| Total transactions with shareholders | -2,182 | -2 | -2,184 |
| Closing balance 30 September 2021 | 67,214 | 8 | 67,222 |
| Opening balance 1 January 2022 | 69,582 | 9 | 69,592 |
|---|---|---|---|
| Net income for the period | 9,563 | 4 | 9,567 |
| Other comprehensive income | 9,491 | 1 | 9,492 |
| Total comprehensive income | 19,054 | 5 | 19,059 |
| Dividend | -2,333 | -1 | -2,333 |
| Stock purchase plans | -18 | - | -18 |
| Total transactions with shareholders | -2,351 | -1 | -2,352 |
| Closing balance 30 September 2022 | 86,285 | 13 | 86,298 |
| CONDENSED STATEMENT OF CASH FLOWS | Q3 | Jan-Sep | ||
|---|---|---|---|---|
| SEK M | 2021 | 2022 | 2021 | 2022 |
| OPERATING ACTIVITIES | ||||
| Operating income | 3,392 | 4,973 | 10,168 | 13,380 |
| Depreciation and amortization | 980 | 1,041 | 2,872 | 2,942 |
| Other non-cash items | 233 | 44 | 137 | 109 |
| Restructuring payments | -130 | -81 | -397 | -233 |
| Cash flow before interest and tax | 4,476 | 5,977 | 12,781 | 16,197 |
| Interest paid and received | -110 | -217 | -407 | -607 |
| Tax paid on income | -805 | -1,038 | -2,157 | -2,914 |
| Cash flow before changes in working capital | 3,560 | 4,722 | 10,217 | 12,677 |
| Changes in working capital | -157 | -477 | -866 | -4,379 |
| Cash flow from operating activities | 3,404 | 4,245 | 9,350 | 8,298 |
| INVESTING ACTIVITIES | ||||
| Net investments in intangible assets and property, plant and equipment | -407 | -509 | -1,084 | -1,254 |
| Investments in subsidiaries | -434 | -674 | -1,158 | -3,733 |
| Divestments of subsidiaries | 648 | 1 | 694 | 6 |
| Other investments and disposals | 0 | 0 | -42 | -1 |
| Cash flow from investing activities | -192 | -1,182 | -1,590 | -4,982 |
| FINANCING ACTIVITIES | ||||
| Dividends | -1 | - | -2,168 | -2,333 |
| Acquisition of non-controlling interests | - | -55 | - | -55 |
| Amortization of lease liabilities | -313 | -335 | -939 | -970 |
| Net cash effect of changes in borrowings | -451 | -1,416 | -1,428 | -1,336 |
| Cash flow from financing activities | -764 | -1,806 | -4,535 | -4,696 |
| CASH FLOW FOR THE PERIOD | 2,447 | 1,257 | 3,226 | -1,380 |
| CASH AND CASH EQUIVALENTS | ||||
| Cash and cash equivalents at beginning of period | 3,544 | 1,707 | 2,756 | 4,325 |
| Cash flow for the period | 2,447 | 1,257 | 3,226 | -1,380 |
| Effect of exchange rate differences | 3 | 14 | 13 | 33 |
| Cash and cash equivalents at end of period | 5,995 | 2,978 | 5,995 | 2,978 |
| THE GROUP IN SUMMARY | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Jan-sep Jan-sep | Year | Last 12 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 months | |
| Sales | 22,225 | 23,298 | 21,805 | 23,648 | 23,930 | 25,623 | 26,591 | 29,466 | 31,820 | 69,384 | 87,878 | 95,007 | 113,501 |
| Organic growth Gross income1 |
-5% 9,026 |
-5% 9,278 |
4% 8,722 |
23% 9,438 |
7% 9,535 |
10% 10,082 |
14% 10,476 |
13% 11,630 |
14% 12,626 |
11% 27,695 |
14% 34,732 |
11% 37,777 |
- 44,814 |
| Gross margin 1 | 40.6% | 39.8% | 40.0% | 39.9% | 39.8% | 39.3% | 39.4% | 39.5% | 39.7% | 39.9% | 39.5% | 39.8% | 39.5% |
| EBITDA1 | 4,505 | 4,487 | 4,115 | 4,552 | 4,373 | 4,982 | 4,941 | 5,367 | 6,014 | 13,041 | 16,322 | 18,023 | 21,304 |
| EBITDA margin 1 | 20.3% | 19.3% | 18.9% | 19.3% | 18.3% | 19.4% | 18.6% | 18.2% | 18.9% | 18.8% | 18.6% | 19.0% | 18.8% |
| Depreciation, excl attrib. to business combinations | -771 | -853 | -774 | -812 | -833 | -821 | -788 | -810 | -875 | -2,420 | -2,472 | -3,241 | -3,293 |
| EBITA1 | 3,734 | 3,634 | 3,341 | 3,740 | 3,539 | 4,161 | 4,153 | 4,557 | 5,139 | 10,621 | 13,849 | 14,782 | 18,010 |
| EBITA margin 1 | 16.8% | 15.6% | 15.3% | 15.8% | 14.8% | 16.2% | 15.6% | 15.5% | 16.2% | 15.3% | 15.8% | 15.6% | 15.9% |
| Amortization attrib. to business combinations | -142 | -159 | -154 | -151 | -147 | -148 | -151 | -152 | -166 | -452 | -469 | -601 | -618 |
| Operating income (EBIT)1 | 3,593 16.2% |
3,475 14.9% |
3,187 14.6% |
3,589 15.2% |
3,392 14.2% |
4,013 15.7% |
4,001 15.0% |
4,406 15.0% |
4,973 15.6% |
10,168 14.7% |
13,380 15.2% |
14,181 14.9% |
17,393 15.3% |
| Operating margin (EBIT) 1 Items affecting comparability |
1 910 | -1 367 | - | - | - | - | - | - | - | - | - | - | - |
| Operating income (EBIT) | 5,502 | 2,108 | 3,187 | 3,589 | 3,392 | 4,013 | 4,001 | 4,406 | 4,973 | 10,168 | 13,380 | 14,181 | 17,393 |
| Operating margin (EBIT) | 24.8% | 9.0% | 14.6% | 15.2% | 14.2% | 15.7% | 15.0% | 15.0% | 15.6% | 14.7% | 15.2% | 14.9% | 15.3% |
| Net financial items | -176 | -169 | -142 | -148 | -159 | -194 | -190 | -198 | -237 | -449 | -624 | -643 | -818 |
| Income before tax | 5,326 | 1,938 | 3,045 | 3,441 | 3,233 | 3,819 | 3,811 | 4,208 | 4,736 | 9,719 | 12,756 | 13,538 | 16,574 |
| Profit margin | 24.0% | 8.3% | 14.0% | 14.6% | 13.5% | 14.9% | 14.3% | 14.3% | 14.9% | 14.0% | 14.5% | 14.2% | 14.6% |
| Tax on income | -888 | -469 | -792 | -229 | -841 | -776 | -953 | -1,052 | -1,184 | -1,862 | -3,189 | -2,638 | -3,965 |
| Net income for the period | 4,438 | 1,470 | 2,253 | 3,212 | 2,392 | 3,043 | 2,859 | 3,156 | 3,552 | 7,858 | 9,567 | 10,901 | 12,610 |
| Net income attributable to: | |||||||||||||
| Parent company's shareholders | 4,437 | 1,471 | 2,253 | 3,212 | 2,393 | 3,042 | 2,858 | 3,153 | 3,551 | 7,858 | 9,563 | 10,900 | 12,605 |
| Non-controlling interests | 1 | -1 | 0 | 0 | 0 | 1 | 0 | 3 | 1 | 0 | 4 | 1 | 5 |
| OPERATING CASH FLOW | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Jan-sep Jan-sep | Year | Last 12 | |
| SEK M | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 months | |
| Operating income (EBIT) | 5,502 | 2,108 | 3,187 | 3,589 | 3,392 | 4,013 | 4,001 | 4,406 | 4,973 | 10,168 | 13,380 | 14,181 | 17,393 |
| Reversal items affecting comparability | -1 910 912 |
1 367 1,012 |
- 929 |
- 963 |
- 980 |
- 969 |
- 939 |
- 961 |
- 1,041 |
- 2,872 |
- 2,942 |
- 3,841 |
- 3,911 |
| Depreciation and amortization Net capital expenditure |
-301 | -439 | -289 | -388 | -407 | -545 | -336 | -410 | -509 | -1,084 | -1,254 | -1,629 | -1,800 |
| Change in working capital | 820 | 1,811 | -701 | -9 | -157 | -629 | -3,261 | -641 | -477 | -866 | -4,379 | -1,496 | -5,008 |
| Interest paid and received | -90 | -189 | -122 | -175 | -110 | -162 | -133 | -257 | -217 | -407 | -607 | -569 | -769 |
| Repayment of lease liabilities | -308 | -319 | -311 | -315 | -313 | -303 | -312 | -324 | -335 | -939 | -970 | -1,242 | -1,273 |
| Non-cash items | -219 | 178 | -57 | -39 | 233 | 41 | 13 | 52 | 44 | 137 | 109 | 178 | 150 |
| Operating cash flow | 4,407 | 5,529 | 2,636 | 3,627 | 3,619 | 3,384 | 912 | 3,787 | 4,520 | 9,881 | 9,219 | 13,265 | 12,603 |
| Cash conversion | 1.29 | 1.67 | 0.87 | 1.05 | 1.12 | 0.89 | 0.24 | 0.90 | 0.95 | 1.02 | 0.72 | 0.98 | 0.76 |
| CHANGE IN NET DEBT SEK M |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 |
2021 | Jan-sep Jan-sep 2022 |
Year | Last 12 2021 months |
| Net debt at beginning of period | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | 27,617 | 32,565 | 29,755 | 27,071 | 29,755 | 25,732 |
| Operating cash flow | -4,407 | -5,529 | -2,636 | -3,627 | -3,619 | -3,384 | -912 | -3,787 | -4,520 | -9,881 | -9,219 | -13,265 | -12,603 |
| Restructuring payments | 155 | 337 | 138 | 129 | 130 | 166 | 68 | 84 | 81 | 397 | 233 | 563 | 399 |
| Tax paid on income | 1,104 | 648 | 532 | 820 | 805 | 960 | 597 | 1,278 | 1,038 | 2,157 | 2,914 | 3,117 | 3,874 |
| Acquisitions and divestments | 4,331 | -497 | 385 | 472 | -632 | 975 | 67 | 3,039 | 826 | 226 | 3,932 | 1,201 | 4,907 |
| Dividend | - | 2,055 | - | 2,167 | 1 | 2,166 | - | 2,333 | - | 2,168 | 2,333 | 4,333 | 4,499 |
| Actuarial gain/loss on post-employment benefit oblig. | 94 | -321 | -619 | -44 | -37 | -216 | 11 | 191 | -538 | -700 | -336 | -917 | -552 |
| Change to lease liabilities Exchange rate differences, etc. |
98 -428 |
-93 -1,904 |
-29 1,633 |
-97 -471 |
7 568 |
33 639 |
-76 791 |
-51 1,860 |
-53 1,219 |
-119 1,731 |
-180 3,870 |
-86 2,370 |
-147 4,509 |
| Net debt at end of period | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | 27,617 | 32,565 | 30,618 | 25,732 | 30,618 | 27,071 | 30,618 |
| Net debt/Equity | 0.56 | 0.51 | 0.46 | 0.45 | 0.38 | 0.39 | 0.38 | 0.42 | 0.35 | ||||
| NET DEBT | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| SEK M | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | ||||
| Interest-bearing assets | -47 | -205 | -189 | -176 | -177 | -177 | -177 | -199 | -207 | ||||
| Cash and cash equivalents | -4,906 -350 |
-2,756 -255 |
-3,610 83 |
-3,544 1 |
-5,995 62 |
-4,325 86 |
-4,113 283 |
-1,707 141 |
-2,978 231 |
||||
| Derivative financial instruments, net Pension provisions |
4,164 | 3,514 | 2,995 | 2,922 | 2,949 | 2,736 | 2,715 | 2,803 | 2,389 | ||||
| Lease liabilities | 3,818 | 3,562 | 3,678 | 3,530 | 3,401 | 3,515 | 3,534 | 3,697 | 3,840 | ||||
| Interest-bearing liabilities | 32,379 | 25,895 | 26,202 | 25,776 | 25,492 | 25,237 | 25,374 | 27,829 | 27,344 | ||||
| Total | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | 27,617 | 32,565 | 30,618 | ||||
| CAPITAL EMPLOYED AND FINANCING | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| SEK M | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | ||||
| Goodwill | 64,013 | 58,344 | 60,822 | 60,198 | 60,604 | 62,502 | 63,600 | 69,536 | 73,540 | ||||
| Other intangible assets Property, plant and equipment |
12,716 8,897 |
14,108 8,026 |
14,446 8,329 |
14,004 8,186 |
13,920 8,325 |
13,834 8,753 |
13,877 8,934 |
14,476 9,538 |
14,774 10,079 |
||||
| Right-of-use assets | 3,779 | 3,513 | 3,619 | 3,466 | 3,330 | 3,436 | 3,450 | 3,601 | 3,735 | ||||
| Other capital employed | 8,190 | 5,867 | 6,721 | 7,588 | 7,623 | 8,796 | 11,932 | 14,327 | 15,257 | ||||
| Restructuring reserve | -363 | -1,224 | -1,119 | -971 | -848 | -658 | -600 | -537 | -469 | ||||
| Capital employed | 97,232 | 88,634 | 92,818 | 92,471 | 92,954 | 96,663 | 101,193 | 110,941 | 116,916 | ||||
| Net debt | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | 27,617 | 32,565 | 30,618 | ||||
| Non-controlling interests Equity attributable to Parent company´s shareholders |
12 | 9 | 10 | 9 | 8 | 9 | 9 | 11 | 13 | ||||
| 62,161 | 58,870 | 63,649 | 63,953 | 67,214 | 69,582 | 73,568 | 78,365 | 86,285 | |||||
| OTHER KEY RATIOS ETC | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | |||||
| Earnings per share, SEK | 3,99 | 1,32 | 2,03 | 2,89 | 2,15 | 2,74 | 2,57 | 2,84 | 3,20 | ||||
| Earnings per share, excl IAC, SEK | 2,28 | 2,33 | 2,03 | 2,89 | 2,15 | 2,74 | 2,57 | 2,84 | 3,20 | ||||
| Shareholders' equity per share, SEK Return on capital employed |
55,96 13,1% |
53,00 12,5% |
57,30 13,1% |
57,57 14,9% |
60,51 14,6% |
62,64 15,2% |
66,23 15,7% |
70,55 16,0% |
77,68 16,8% |
||||
| Return on equity | 17,0% | 15,5% | 15,1% | 18,5% | 14,4% | 17,0% | 16,8% | 16,1% | 16,4% | ||||
| Net debt/EBITDA | 2,2 | 1,9 | 1,8 | 1,6 | 1,5 | 1,5 | 1,5 | 1,7 | 1,4 | ||||
| Average number of employees | 47,553 | 48,471 | 49,685 | 50,727 | 50,946 | 50,934 | 50,984 | 51,545 | 51,937 | ||||
| Average adjusted capital employed Average number of shares, thousands |
95,452 | 95,002 | 94,230 | 93,076 | 93,287 | 93,199 | 95,766 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 |
99,074 | 103,663 | ||||
Items affecting comparability, net of tax 1,910 -1,112 - - - - - - -
1) Excluding items affecting comparability (IAC)
| Q3 and 30 Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
| Sales, external | 4,908 | 5,603 | 5,363 | 7,598 | 1,947 | 2,481 | 3,678 | 5,101 | 8,033 | 11,037 | - | - | 23,930 | 31,820 |
| Sales, internal | 135 | 154 | 37 | 42 | 324 | 436 | 27 | 41 | 25 | 29 | -548 | -703 | - | - |
| Sales | 5,044 | 5,758 | 5,400 | 7,640 | 2,271 | 2,918 | 3,705 | 5,142 | 8,058 11,066 | -548 | -703 | 23,930 | 31,820 | |
| Organic growth | 7% | 4% | 14% | 17% | -7% | -2% | 7% | 19% | 10% | 20% | - | - | 7% | 14% |
| Acquisitions and divestments | -1% | 5% | 2% | 0% | -2% | 15% | 3% | 2% | 6% | 1% | - | - | 2% | 3% |
| Exchange-rate effects | -1% | 5% | -3% | 24% | 1% | 15% | -2% | 18% | -3% | 16% | - | - | -1% | 16% |
| Operating income (EBIT) | 572 | 825 | 1,112 | 1,600 | 132 | 132 | 585 | 890 | 1,191 | 1,735 | -201 | -210 | 3,392 | 4,973 |
| Operating margin (EBIT) | 11.3% 14.3% | 20.6% 20.9% | 5.8% | 4.5% | 15.8% 17.3% | 14.8% 15.7% | - | - | 14.2% | 15.6% | ||||
| OPERATING CASH FLOW | ||||||||||||||
| SEK M | ||||||||||||||
| Operating income (EBIT) | 572 | 825 | 1,112 | 1,600 | 132 | 132 | 585 | 890 | 1,191 | 1,735 | -201 | -210 | 3,392 | 4,973 |
| Depreciation and amortization | 277 | 211 | 116 | 174 | 77 | 96 | 232 | 254 | 271 | 298 | 8 | 9 | 980 | 1,041 |
| Net capital expenditure | -134 | -100 | -81 | -124 | -30 | -49 | -74 | -95 | -87 | -139 | -2 | -2 | -407 | -509 |
| Amortization of lease liabilities | -76 | -66 | -38 | -46 | -21 | -26 | -35 | -40 | -138 | -153 | -4 | -4 | -313 | -335 |
| Change in working capital | -80 | -97 | -112 | 8 | -37 | 37 | 157 | -307 | -214 | -317 | 128 | 198 | -157 | -477 |
| Operating cash flow by division | 560 | 773 | 997 | 1,612 | 122 | 190 | 864 | 702 | 1,023 | 1,424 | -69 | -8 | 3,496 | 4,693 |
| Non-cash items | 233 | 44 | 233 | 44 | ||||||||||
| Interest paid and received | -110 | -217 | -110 | -217 | ||||||||||
| Operating cash flow | 3,619 | 4,520 |
| Jan-Sep and 30 Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
| Sales, external | 14,990 | 16,207 | 14,869 20,801 | 5,481 | 6,056 | 10,563 13,499 | 23,481 31,315 | - | - | 69,384 | 87,878 | |||
| Sales, internal | 346 | 421 | 116 | 116 | 807 | 1,120 | 83 | 112 | 83 | 77 | -1,436 | -1,845 | - | - |
| Sales | 15,336 16,628 | 14,986 20,916 | 6,288 | 7,176 | 10,647 13,610 | 23,564 31,392 | -1,436 -1,845 | 69,384 | 87,878 | |||||
| Organic growth | 15% | 6% | 13% | 19% | 3% | -3% | 4% | 12% | 14% | 20% | - | - | 11% | 14% |
| Acquisitions and divestments | 0% | -2% | 1% | 1% | -2% | 6% | 3% | 2% | 10% | 1% | - | - | 4% | 1% |
| Exchange-rate effects | -3% | 4% | -10% | 20% | -3% | 11% | -7% | 14% | -8% | 12% | - | - | -7% | 12% |
| Operating income (EBIT) | 2,110 | 2,402 | 3,084 | 4,316 | 411 | 243 | 1,630 | 2,083 | 3,483 | 4,941 | -550 | -605 | 10,168 | 13,380 |
| Operating margin (EBIT) | 13.8% 14.4% | 20.6% 20.6% | 6.5% | 3.4% | 15.3% 15.3% | 14.8% 15.7% | - | - | 14.7% | 15.2% | ||||
| OPERATING CASH FLOW | ||||||||||||||
| SEK M | ||||||||||||||
| Operating income (EBIT) | 2,110 | 2,402 | 3,084 | 4,316 | 411 | 243 | 1,630 | 2,083 | 3,483 | 4,941 | -550 | -605 | 10,168 | 13,380 |
| Depreciation and amortization | 738 | 629 | 377 | 435 | 231 | 258 | 685 | 733 | 814 | 858 | 27 | 28 | 2,872 | 2,942 |
| Net capital expenditure | -339 | -314 | -249 | -311 | -95 | -101 | -165 | -180 | -234 | -336 | -2 | -13 | -1,084 | -1,254 |
| Amortization of lease liabilities | -245 | -193 | -109 | -132 | -68 | -79 | -107 | -116 | -401 | -438 | -10 | -13 | -939 | -970 |
| Change in working capital | -317 | -1,067 | 33 | -699 | -301 | -270 | 255 | -920 | -659 | -1,719 | 123 | 296 | -866 | -4,379 |
| Operating cash flow by division | 1,947 | 1,458 | 3,136 | 3,609 | 178 | 51 | 2,298 | 1,599 | 3,004 | 3,307 | -412 | -307 | 10,151 | 9,718 |
| Non-cash items | 137 | 109 | 137 | 109 | ||||||||||
| Interest paid and received | -407 | -607 | -407 | -607 | ||||||||||
| Operating cash flow | 9,881 | 9,219 | ||||||||||||
| CAPITAL EMPLOYED | ||||||||||||||
| SEK M | ||||||||||||||
| Goodwill | 10,491 | 12,390 | 11,407 14,435 | 3,881 | 5,660 | 15,758 18,811 | 19,068 22,245 | - | - | 60,604 | 73,540 | |||
| Other intangible assets | 1,216 | 1,029 | 1,223 | 1,477 | 976 | 1,233 | 3,942 | 3,912 | 6,524 | 7,085 | 39 | 39 | 13,920 | 14,774 |
| Property, plant and equipment | 2,229 | 2,711 | 1,659 | 2,182 | 1,392 | 1,508 | 1,129 | 1,381 | 1,870 | 2,248 | 47 | 49 | 8,325 | 10,079 |
| Right-of-use assets | 854 | 930 | 372 | 487 | 245 | 216 | 526 | 497 | 1,291 | 1,570 | 43 | 35 | 3,330 | 3,735 |
| Other capital employed | 2,583 | 4,130 | -255 | 1,046 | 1,952 | 1,971 | 686 | 2,726 | 3,187 | 6,317 | -530 | -933 | 7,623 | 15,257 |
| Adjusted capital employed | 17,372 21,191 | 14,405 19,626 | 8,445 10,587 | 22,041 27,326 | 31,939 39,464 | -401 | -810 | 93,802 117,385 | ||||||
| Restructuring reserve | -386 | -186 | -7 | -2 | -139 | -72 | -119 | -92 | -144 | -94 | -54 | -23 | -848 | -469 |
| Capital employed | 16,986 21,005 | 14,398 19,624 | 8,306 10,516 | 21,923 27,234 | 31,796 39,370 | -455 | -833 | 92,954 116,916 | ||||||
| Return on capital employed | 15.2% 17.0% | 29.2% 32.1% | 7.2% | 3.5% | 10.1% 11.4% | 15.0% 18.5% | - | - | 14.6% | 16.8% | ||||
| Average adjusted capital employed | 18,293 | 18,846 | 13,703 16,907 | 8,482 | 9,568 | 21,856 23,636 | 31,491 34,891 | - | - | 93,287 | 103,663 | |||
| Average number of employees | 12,185 | 11,922 | 9,257 | 9,454 | 8,328 | 7,888 | 6,439 | 7,022 | 14,375 | 15,224 | 363 | 427 | 50,946 | 51,937 |
| Jan-Dec and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Sales, external | 18,563 20,040 | 18,907 20,356 | 7,916 | 7,549 | 14,054 14,495 | 28,210 32,568 | - | - | 87,649 | 95,007 | ||||
| Sales, internal | 418 | 483 | 107 | 151 | 926 | 1,170 | 105 | 109 | 113 | 123 | -1,668 -2,036 | - | - | |
| Sales | 18,982 20,522 19,013 20,507 | 8,841 8,719 14,158 14,604 28,323 32,690 | -1,668 -2,036 | 87,649 95,007 | ||||||||||
| Organic growth | -8% | 13% | -7% | 14% | -16% | 2% | -15% | 5% | -2% | 14% | - | - | -8% | 11% |
| Acquisitions and divestments | -1% | -2% | -9% | 1% | 1% | -2% | 10% | 3% | 15% | 7% | - | - | 4% | 2% |
| Exchange-rate effects | -1% | -3% | -2% | -7% | -2% | -1% | -3% | -5% | -2% | -6% | - | - | -3% | -5% |
| Share of earnings in associates | - | - | - | - | 9 | 18 | 9 | 1 | 239 | -1 | - | - | 257 | 19 |
| EBIT, excl items affecting comparability | 2,263 2,916 | 3,698 4,200 | 396 | 499 | 2,023 2,253 | 4,083 4,988 | -547 | -675 | 11,916 14,181 | |||||
| EBIT margin, excl items affecting comparability | 11,9% 14,2% | 19,4% 20,5% | 4,5% | 5,7% | 14,3% 15,4% | 14,4% 15,3% | - | - | 13,6% | 14,9% | ||||
| Restructuring costs | -448 | - | -51 | - | -303 | - | -195 | - | -220 | - | -150 | - | -1,366 | - |
| Revaluation of associate shareholding | - | - | - | - | - | - | - | - | 1,909 | - | - | - | 1,909 | - |
| Operating income (EBIT) | 1,815 2,916 | 3,647 4,200 | 93 | 499 | 1,828 2,253 | 5,772 4,988 | -697 | -675 | 12,458 14,181 | |||||
| Operating margin (EBIT) | 9,6% 14,2% | 19,2% 20,5% | 1,1% | 5,7% | 12,9% 15,4% | 20,4% 15,3% | - | - | 14,2% | 14,9% | ||||
| Operating income (EBIT) | 1,815 | 2,916 | 3,647 | 4,200 | 93 | 499 | 1,828 | 2,253 | 5,772 | 4,988 | -697 | -675 | 12,458 | 14,181 |
| Revaluation of associate shareholding | 448 | - | 51 | - | 303 | - | 195 | - | -1,689 | - | 150 | - | -542 | - |
| Depreciation and amortization | 925 | 969 | 471 | 493 | 355 | 306 | 917 | 923 | 1,078 | 1,114 | 30 | 37 | 3,776 | 3,841 |
| Net capital expenditure | -407 | -475 | -267 | -351 | -192 | -182 | -430 | -250 | -330 | -361 | -47 | -10 | -1,674 | -1,629 |
| Amortization of lease liabilities | -318 | -306 | -132 | -148 | -108 | -92 | -144 | -144 | -559 | -537 | -14 | -15 | -1,275 | -1,242 |
| Change in working capital | 476 | -14 | 1,067 | -471 | 311 | -247 | 144 | 397 | 702 -1,233 | -94 | 73 | 2,606 | -1,496 | |
| Operating cash flow by division | 2,939 3,089 | 4,837 3,722 | 762 | 285 | 2,509 3,179 | 4,974 3,971 | -673 | -591 | 15,349 13,656 | |||||
| Non-cash items | -95 | 178 | -95 | 178 | ||||||||||
| Interest paid and received | -694 | -569 | -694 | -569 | ||||||||||
| Operating cash flow | 14,560 13,265 | |||||||||||||
| Capital employed | 16,849 17,063 | 13,201 15,908 | 8,191 | 8,653 | 21,044 22,326 | 30,231 32,787 | -883 | -74 | 88,634 | 96,663 | ||||
| - of which goodwill | 10,475 10,949 | 10,444 11,700 | 3,884 | 4,028 | 14,881 16,164 | 18,660 19,662 | - | - | 58,344 | 62,502 | ||||
| - of which other intangible assets and PPE | 3,485 | 3,516 | 2,713 | 2,977 | 2,375 | 2,483 | 5,100 | 5,059 | 8,362 | 8,461 | 99 | 90 | 22,134 | 22,587 |
| - of which right-of-use assets | 998 | 937 | 387 | 430 | 264 | 243 | 457 | 512 | 1,390 | 1,270 | 17 | 44 | 3,513 | 3,436 |
| - of which investments in associates | 1 | 1 | - | - | 589 | 602 | 28 | 32 | 20 | 17 | - | - | 637 | 652 |
| Return on capital employed | 11,9% 16,2% | 24,4% 30,0% | 4,4% | 5,9% | 8,9% 10,4% | 13,9% 15,8% | - | - | 12,5% | 15,2% | ||||
| Average adjusted capital employed | 19,050 17,991 | 15,186 13,986 | 8,910 | 8,498 | 22,757 21,751 | 29,352 31,525 | - | - | 95,002 | 93,199 | ||||
| Average number of employees | 10,281 11,848 | 8,787 | 9,298 | 9,892 | 8,259 | 6,374 | 6,556 | 12,883 14,604 | 254 | 369 | 48,471 | 50,934 |
| Sales by continent Q3 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
| Europe | 4,326 | 4,802 | 24 | 22 | 167 | 193 | 1,021 | 1,289 | 3,541 | 3,993 | -233 | -232 | 8,845 | 10,068 |
| North America | 105 | 157 | 4,830 | 6,944 | 265 | 826 | 1,771 | 2,502 | 4,010 | 6,414 | -205 | -341 | 10,778 | 16,503 |
| Central- and South America | 19 | 23 | 522 | 638 | 19 | 19 | 109 | 226 | 17 | 22 | -5 | -12 | 681 | 917 |
| Africa | 228 | 317 | 3 | 1 | 3 | 4 | 73 | 105 | 9 | 9 | -8 | -13 | 308 | 422 |
| Asia | 325 | 417 | 19 | 33 | 1,224 | 1,138 | 525 | 740 | 251 | 325 | -54 | -64 | 2,290 | 2,589 |
| Oceania | 41 | 41 | 2 | 2 | 594 | 738 | 206 | 280 | 230 | 303 | -44 | -41 | 1,028 | 1,323 |
| Total | 5,044 | 5,758 | 5,400 | 7,640 | 2,271 | 2,918 | 3,705 | 5,142 | 8,058 11,066 | -548 | -703 | 23,930 31,820 |
| Sales by continent Jan-Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
| Europe | 13,323 | 14,100 | 71 | 86 | 455 | 512 | 3,003 | 3,735 | 10,665 | 12,078 | -650 | -697 | 26,867 29,813 | |
| North America | 306 | 409 | 13,361 | 18,914 | 707 | 1,556 | 5,134 | 6,393 | 11,367 | 17,559 | -489 | -817 | 30,385 44,014 | |
| Central- and South America | 53 | 72 | 1,452 | 1,806 | 38 | 36 | 273 | 539 | 51 | 64 | -26 | -24 | 1,841 | 2,493 |
| Africa | 696 | 822 | 9 | 12 | 8 | 7 | 199 | 341 | 34 | 33 | -26 | -31 | 919 | 1,184 |
| Asia | 862 | 1,116 | 86 | 90 | 3,327 | 2,976 | 1,461 | 1,881 | 745 | 844 | -144 | -166 | 6,338 | 6,741 |
| Oceania | 95 | 109 | 6 | 7 | 1,753 | 2,089 | 578 | 722 | 702 | 814 | -101 | -111 | 3,033 | 3,631 |
| Total | 15,336 16,628 | 14,986 20,916 | 6,288 | 7,176 | 10,647 13,610 | 23,564 31,392 | -1,436 -1,845 | 69,384 87,878 |
| Sales by product group Q3 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
| Mechanical locks, lock systems and fittings | 2,418 | 2,732 | 2,238 | 2,939 | 1,085 | 1,565 | 73 | 99 | 2 | 2 | -187 | -216 | 5,628 | 7,121 |
| Electromechanical and electronic locks | 1,661 | 1,739 | 1,432 | 1,949 | 549 | 715 | 3,649 | 5,038 | 277 | 314 | -292 | -409 | 7,276 | 9,345 |
| Security doors and hardware | 824 | 1,142 | 1,718 | 2,732 | 610 | 592 | -17 | 4 | 754 | 1,003 | -39 | -40 | 3,851 | 5,433 |
| Entrance automation | 140 | 145 | 13 | 20 | 27 | 46 | - | - | 7,025 | 9,748 | -29 | -37 | 7,176 | 9,921 |
| Total | 5,044 | 5,758 | 5,400 | 7,640 | 2,271 | 2,918 | 3,705 | 5,142 | 8,058 11,066 | -548 | -703 | 23,930 31,820 |
| Sales by product group Jan-Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
| Mechanical locks, lock systems and fittings | 7,376 | 8,089 | 6,358 | 8,178 | 3,122 | 3,761 | 238 | 269 | 6 | 6 | -511 | -614 | 16,587 | 19,690 |
| Electromechanical and electronic locks | 5,019 | 5,076 | 3,810 | 5,412 | 1,438 | 1,744 | 10,389 | 13,330 | 778 | 884 | -738 | -1,029 | 20,695 25,416 | |
| Security doors and hardware | 2,510 | 3,069 | 4,790 | 7,271 | 1,662 | 1,529 | 20 | 10 | 2,153 | 3,001 | -90 | -109 | 11,046 | 14,771 |
| Entrance automation | 431 | 394 | 28 | 56 | 67 | 142 | - | - | 20,627 27,502 | -97 | -92 | 21,056 28,001 | ||
| Total | 15,336 16,628 | 14,986 20,916 | 6,288 | 7,176 | 10,647 13,610 | 23,564 31,392 | -1,436 -1,845 | 69,384 87,878 |
| Number of | Approx. | Month of | |||
|---|---|---|---|---|---|
| Acquisition | Division | Country | employees | sales in 2021 | consolidation |
| Keytechnik | Global Technologies | Belgium | <50 | <50 MSEK | 2022-03 |
| Jotec | Entrance Systems | Germany | 100 | 200 MSEK | 2022-04 |
| Vigil Health Solutions | Global Technologies | Canada | <50 | <50 MSEK | 2022-04 |
| Vizinex | Global Technologies | USA | <50 | <50 MSEK | 2022-05 |
| Arran Isle | EMEIA | United Kingdom | 556 | 1,450 MSEK | 2022-06 |
| Acura | Global Technologies | Brazil | 70 | 60 MSEK | 2022-06 |
| Caldwell | Asia Pacific/EMEIA | USA | 415 | 1,000 MSEK | 2022-06 |
| J. Newton Enterprises | Entrance Systems | USA | 60 | 150 MSEK | 2022-08 |
| ASA Fermetures | Entrance Systems | France | <50 | 120 MSEK | 2022-09 |
| Go Doors | Entrance Systems | Australia | <50 | <50 MSEK | 2022-09 |
| VHS | EMEIA | Turkey | 440 | 150 MSEK | 2022-09 |
| SEK M 2021 2022 2021 2022 Purchase prices Cash paid for acquisitions during the year 353 628 761 3,720 Holdbacks and deferred considerations for acquisitions during the year 39 223 113 363 Adjustment of purchase prices for acquisitions in prior years 0 -6 -6 2 Total 393 845 868 4,085 Acquired assets and liabilities at fair value Intangible assets 23 6 151 120 Property, plant and equipment and right-of-use assets 16 67 25 309 Other non-current assets -4 14 -1 42 58 85 122 844 Inventories Current receivables and investments 56 68 131 533 Cash and cash equivalents 30 -4 118 112 Non-current liabilities -2 -59 -21 -72 Current liabilities -60 -43 -233 -602 Total 118 134 292 1,285 Goodwill 275 711 576 2,799 Change in cash and cash equivalents due to acquisitions Cash paid for acquisitions during the year 353 628 761 3,720 Cash and cash equivalents in acquired subsidiaries -30 4 -118 -112 Paid considerations for acquisitions in prior years 110 42 515 125 |
Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| Total 434 674 1,158 3,733 |
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.
| 30 September 2022 | Financial instruments at fair value |
||||
|---|---|---|---|---|---|
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Financial assets at amortized cost | 24,261 | 24,261 | |||
| Financial assets at fair value through profit and loss | 66 | 66 | |||
| Derivatives - hedge accounting | 18 | 18 | 18 | ||
| Derivatives - held for trading | 598 | 598 | 598 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 37,926 | 36,780 | |||
| Financial liabilities at fair value through profit and loss | 600 | 600 | 600 | ||
| Lease liabilities | 3,840 | 3,840 | |||
| Derivatives - hedge accounting | 257 | 257 | 257 | ||
| Derivatives - held for trading | 590 | 590 | 590 | ||
| 31 December 2021 | Financial instruments at fair value |
||||
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Loans and other receivables | 20,393 | 20,393 | |||
| Financial assets at fair value through profit and loss | 52 | 52 | |||
| Available-for-sale financial assets | 85 | 85 | 85 | ||
| Derivative instruments - hedge accounting | |||||
| 177 | 177 | 177 | |||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 34,763 | 34,960 | |||
| Financial liabilities at fair value through profit and loss | 403 | 403 | 403 | ||
| Lease liabilities | 3,515 | 3,515 | |||
| Derivatives - hedge accounting | 3 | 3 | 3 |
Financial liabilities at fair value through profit and loss pertains to deferred considerations, Deferred considerations are initially measured on the day of acquisition based i.e. additional payments for acquired companies. The size of a deferred consideration is on management's best estimate regarding future outcomes and belong to usually linked to the earnings and sales performance in an acquired company during a level 3 in the hierarchy. specific period of time.
| CONDENSED INCOME STATEMENT | Jan-Sep Year |
||
|---|---|---|---|
| SEK M | 2021 | 2021 | 2022 |
| Operating income | 1,053 | -30 | -115 |
| Income before appropriations and tax | 6,721 | 2,775 | 730 |
| Net income for the period | 6,631 | 2,820 | 814 |
| CONDENSED BALANCE SHEET | 31 Dec | 30 Sep | |
|---|---|---|---|
| SEK M | 2021 | 2021 | 2022 |
| Non-current assets | 46,435 | 43,067 | 47,779 |
| Current assets | 18,231 | 19,312 | 17,895 |
| Total assets | 64,666 | 62,379 | 65,673 |
| Equity | 28,481 | 26,824 | 26,944 |
| Untaxed reserves | 1,606 | 1,125 | 1,606 |
| Non-current liabilities | 14,577 | 14,370 | 15,711 |
| Current liabilities | 20,002 | 20,060 | 21,413 |
| Total equity and liabilities | 64,666 | 62,379 | 65,673 |
Change in sales for comparable units after adjustments for Average capital employed excluding restructuring reserves acquisitions, divestments and exchange rate effects. for the last twelve months.
Operating income before depreciation and amortization as a Interest-bearing liabilities less interest-bearing assets. percentage of sales. See the table on net debt for detailed information.
Operating income before amortization of intangible assets Net debt at the end of the period in relation to EBITDA for recognized in business combinations, as a percentage of sales. the last twelve months.
Operating margin (EBIT) Net debt/Equity ratio Operating income as a percentage of sales. Net debt in relation to equity.
Profit margin (EBT) Equity ratio
Restructuring costs and significant non-recurring operating expenses Equity excluding non-controlling interests in relation to such as revaluation of previously owned shares in associates and number of outstanding shares after any potential dilution. goodwill impairment.
Cash Flow from operating activities excluding restructuring Comparability, for the last twelwe months as a percentage of payments and tax paid on income minus net capital expenditure average adjusted capital employed. and repayment of lease liabilities.
items affecting comparability. attributable to parent company's shareholders for the
Investments in, less disposals of, intangible assets and Earnings per share before and after dilution
Depreciation, amortization and impairment of intangible assets, are expected to result in significant dilution in the future. property, plant and equipment and right-of-use assets.
Total assets less interest-bearing assets and non-interest- Net income attributable to parent company's shareholders
Income before tax as a percentage of sales. Shareholders' equity as a percentage of total assets.
Items affecting comparability Shareholders' equity per share
Operating cash flow Operating Income (EBIT), excluding Items Affecting
Cash conversion Net income attributable to parent company's shareholders Operating cash flow in relation to income before tax excluding for the last twelve months as a percentage of average equity same period.
property, plant and equipment. Net income attributable to parent company's shareholders divided by weighted average number of outstanding shares. Depreciation and amortization None of the Group's outstanding long-term incentive programs
bearing liabilities including deferred tax liability. excluding items affecting comparability, net of tax, divided by weighted average number of outstanding shares. None of the Group's outstanding long-term incentive programs are expected to result in significant dilution in the future.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.