Annual Report • Feb 11, 2022
Annual Report
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Hultafors Group acquired Telesteps AB on 1 February. Bemsiq signed an agreement for the acquisition of Consens GmbH on 7 February. Latour Industries acquired Esse-Ti S.r.l. on 9 February.
1 The calculation of the net asset value on 10 February was based on the value of the investment portfolio at 1 p.m. on 10 February and the same values as at 31 December were used for the unlisted portfolio.
Investment AB Latour is a mixed investment company consisting primarily of wholly-owned industrial operations and an investment portfolio of listed holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of ten substantial holdings that had a market value of SEK 98 billion as at 31 December 2021. The wholly-owned industrial operations are grouped into six business areas: Bemsiq, Caljan, Hultafors Group, Latour Industries, Nord-Lock Group and Swegon. They generate annual sales amounting to approximately SEK 18 billion.
"The strong underlying demand that we have experienced throughout the year continued into the fourth quarter, and Latour's industrial operations ended the year on a very positive note. The challenges caused by supply chain disruptions continue to put considerable pressure on us. It is important that all our businesses maintain a high level of customer service and we have generally succeeded well with this, albeit at a higher cost than normal, which leads to a short-term negative impact on our gross margins. Adjusted for acquisitions and foreign exchange effects, order intake grew by 17 per cent and sales by 13 per cent during the quarter. Sales are not growing in the same pace as order intake, partly due to disruptions in production and delays in supplies. However, we are also seeing a clear trend of orders being placed increasingly earlier, which results in a difference between order intake and invoicing. Operating profit in the quarter rose 22 per cent to SEK 723 m (592 m) with a strong operating margin of 13.8 (14.8) per cent. Our best fourth quarter to date.
The year as a whole has been marked by the pandemic and its effects, such as the steep rise in raw material prices, component shortages and disruptions to logistics. Our operations have handled the challenges well and developed positively while keeping employee safety a top priority. Net sales rose 24 per cent to SEK 18,280 m (14,783 m) and operating profit rose 26 per cent to SEK 2,663 m (2,117 m), giving an operating margin of 14.6 (14.3) per cent. A record year in several respects and confirmation that we own highquality companies.
As we reported in the previous interim report, Bemsiq is reported as a separate business area as of the fourth quarter. Bemsiq has grown strongly in recent years, both organic and through acquisitions, and has now formed our sixth business area, which we are very happy about.
Latour has a strong financial position and we are investing in the future to maintain our competitive edge and increase market share. The pace of investment has been high throughout the year and we have established several new production units and expanded existing ones in our industrial operations. In all areas of the business, we are committed to a constant focus on sustainability and digitalisation, which are key components of future growth and long-term profitability. In the fourth quarter, Latour Future Solutions became a minority shareholder in its third holding, Swedish Hydro Solutions AB, which provides sustainable water treatment solutions. This is another exciting acquisition for a portfolio whose goal is to consist of holdings that play a role in building a more sustainable society.
Hultafors Group acquired the Danish company Scangrip A/S in the fourth quarter. In addition, an agreement was signed to divest all our shares in the part-owned holding Neuffer Fenster + Türen GmbH. The agreement was concluded in January 2022. Read more about our acquisitions on page 4.
The stock market in general has had very strong growth during the year. Since the start of the year, Latour's investment portfolio has increased by 44.6 per cent when adjusted for portfolio changes, while the benchmark index (SIXRX) increased by 39.3 per cent. During the year, we added a tenth holding, CTEK, to our listed investment portfolio. CTEK is a leading global supplier of premium battery chargers and also specialises in chargers and charging accessories for electric vehicles.
To date, half of our ten listed holdings have published fullyear results. We are therefore unable to draw any general conclusions about the underlying earnings performance. Earlier in the year, however, the performance was generally similar to our wholly-owned operations, with increasing order intake, slightly weaker sales and order books at a record high. Acquisition activities are high in the listed holdings. In the fourth quarter, Securitas signed an agreement to acquire Stanley Black and Decker Security, which entails a new share issue where we have committed our pro rata share of almost USD 100 m, and a further USD 122 m should full subscription to the new share issue not be obtained.
During the year, the net asset value in Latour has increased to SEK 216 per share. Supported by the strong performance of our investment portfolio and industrial operations, we can once again propose an increased dividend. The Board of Directors proposes an increased dividend of SEK 3.30 (3.00) per share."
Johan Hjertonsson President and Chief Executive Officer
In the fourth quarter, order intake grew by 37 per cent to SEK 5,348 m (3,903 m), with organic growth accounting for 17 per cent of this. Invoiced sales rose 32 per cent to SEK 5,252 m (3,989 m), which represents a 13 per cent increase for comparable entities and when adjusted for foreign exchange effects. Operating profit in the wholly-owned industrial operations increased by 22 per cent during the quarter to SEK 723 m (593 m). The operating margin was 13.8 $(14.8)$ per cent.
The above figures only include subsidiaries of the whollyowned business areas. See the separate report on page 6.
On 19 October, Hultafors Group signed an agreement to acquire the entire shareholding of the Danish company Scangrip A/S. The agreement was concluded on 29 October. Scangrip is a leading manufacturer of innovative LED work lights (e.g. floodlights, hand-held lamps, headlamps and torches) for professionals. The company is based in Svendborg, Denmark, with the majority of sales in Europe and North America. The company's net sales for 2021 are expected to be in the region of DKK 220 m with a profitability well in line with Hultafors Group's other operations. The company has about 50 employees.
On 9 December, Latour-Gruppen AB signed an agreement to sell its shares in Neuffer Fenster + Türen GmbH. The sale was concluded in January 2022. Latour acquired 66 per cent of the shares in Neuffer in 2015 in order to expand its expertise and knowledge in the area of e-commerce. Now that this initiative had been completed, Latour conducted a strategic review and decided to divest its ownership in Neuffer in order for Neuffer to continue its development with IFN-Holding AG as the new majority owner.
Earlier in the year, nine acquisitions were concluded in the wholly-owned industrial operations. On 1 March, Hultafors Group finalised the acquisition of Fristads AB, Kansas A/S, Kansas GmbH and Leijona Group Oy. The companies are leading brands in professional workwear for several end-user sectors and have strong footholds in their respective key markets of Sweden, Denmark, Germany and Finland. Net sales totalled approximately EUR 120 m in 2020 and the companies employ more than 600 people altogether. The acquisition is part of Hultafors Group's strategy to grow and develop leading brands in personal protective equipment markets in Europe and North America.
Within Latour Industries, four acquisitions were made during the year. On 12 January, Latour Industries completed its acquisition of the entire shareholding of the Italian company VEGA S.R.L. VEGA is a leading designer and manufacturer of passenger interface systems and electronic systems for elevators and platform lifts. The company has 200 employees and is headquartered in Italy, with subsidiaries in the USA, Brazil, Albania and China. It generates net sales of over EUR 20 m with a strong operating margin. On 8 January, Densiq
acquired the entire shareholding of the Danish company VM Kompensator A/S, which in 2020 generated net sales of DKK 23 m. The company is a leading Danish designer and manufacturer of compensators for use in industrial applications. On 30 September, Densiq acquired DEPAC Anstalt based in Liechtenstein, a leading designer and manufacturer of mechanical seals used in industrial applications. The company is headquartered in Liechtenstein and has a subsidiary in Austria. It reported sales of EUR 8 m in 2020, with a strong operating margin and robust growth. On 9 July, Aritco signed an agreement to acquire the entire shareholding of the Swedish company Motala Hissar. The agreement was concluded in August. Motala Hissar is a well-established and leading manufacturer of platform lifts. The company has its head office, development operations and production facilities in Motala while sales are handled primarily by distributors spread across much of Europe. Net sales for 2020 totalled some SEK 200 m, with the majority being export sales. The company has about 50 employees.
Swegon made one acquisition during the year. On 5 July, an agreement was signed to acquire a majority shareholding of the Finnish software company 720° (Seven Twenty degrees). The agreement was concluded in August. The company offers software that can analyse, measure and visualise the indoor environments of buildings. 720° has eight employees and generated sales of EUR 0.5 m in 2020. This investment will speed Swegon's expansion within digital indoor environment services and strengthen its position as a leading supplier of products and services for indoor environments. The services offered by 720° are currently used in more than 200 buildings, primarily in Finland.
Three acquisitions were made within Bemsig during the year. On 18 December 2020, an agreement was signed to acquire 70 per cent of the shares of Elsys. This transaction was concluded on 5 January 2021. Elsys is an internationally leading manufacturer and seller of LoRaWAN® sensors for applications for smart buildings and cities. The company has 7 employees and its head office and manufacturing unit are in Umeå, Sweden. In 2020, it generated net sales of approximately SEK 50 m. On 29 September, the entire shareholding of the Canadian company Greystone Energy System Inc. was acquired. The company has over 30 years of experience in designing, manufacturing and supplying HVAC sensors and transmitters for the building automation industry. The company's head office and manufacturing facilities are in Moncton, Canada, and it has over 120 employees globally, with sales offices in Canada, USA, Dubai, India, Singapore and Malaysia. In 2020, the company reported total sales of CAD 22 m and a profit level well above Latour's financial targets. Bemsiq has a strong position within the building automation field device market in Europe, and the acquisition of Greystone further strengthens Bemsiq's geographical reach with a strong base in North America. On 27 May, Produal, within Bemsiq, acquired the entire shareholding of the Finnish company HK Instruments Oy, which generates net sales of EUR 8 m and has 50 employees. HK Instruments has its head office and manufacturing operations in Muurame,
Finland, and is a supplier of advanced measuring devices for building automation. The company specialises in technologically advanced measuring instruments for applications within heating, ventilation and air conditioning, encompassing various pressure transmitters, switches, liquid meters and gas detectors.
On 11 June, Latour Future Solutions made an investment in Agua Robur Technologies AB by means of a directed new issue of shares, making Latour Future Solutions a minority shareholder. Aqua Robur designs and manufactures IoT devices, sensors, energy-harvesting products and software for the water industry. The company offers water utilities complete solutions for digitalising their water networks by collecting data from all types of water pipes to enable them to secure safe and efficient water supply systems for the future.
On 18 October, Latour Future Solutions invested in Swedish Hydro Solutions AB by means of a directed new share issue, making Latour Future Solutions a minority shareholder. Swedish Hydro Solutions offers sustainable solutions for water treatment via mobile and stationary treatment systems for bilge and stormwater, process water and remediation of polluted areas. The company's offering includes analysis support, patented bio-based products and adapted equipment for efficient purification of very large volumes of water. The increased efficiency enables decision-makers and regulatory authorities to set higher requirements for water treatment.
Hultafors Group acquired 100 per cent of the shares of Telesteps AB on 1 February. Telesteps is a leading manufacturer of telescopic ladders for professional end users. The company is located in Tranås, Sweden and has worldwide sales. Telesteps' net sales amounted to approximately SEK 87 m in 2021, with profitability in line with Hultafors Group's other operations.
Bemsiq signed an agreement for the acquisition of Consens GmbH on 7 February. Consens is a developer of devices, sensors, components, testing technology and systems for humidity, temperature, and air quality. The company was founded in 1998 and has 13 employees with head office and manufacturing in Thüringen, Germany. Net sales are estimated at 2.9 MEUR in 2021 with a profit level well above Latour's financial target.
Latour Industries acquired Esse-Ti S.r.l. on 9 February. Esse-Ti is an Italian leading manufacturer of alarm systems for elevators. The company develops, manufactures and sells wired and wireless auto-dialers, gateways, and fire-fighting systems to elevator operators, specialized resellers and OEMs. Esse-Ti has 33 employees and net sales amount to about 10 MEUR.
| Net sales | Operating profit | Operating margin % | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| SEK m | Q 4 | 04 | Full Year Full Year | Q 4 | 04 | Full Year Full Year | Q 4 | Q4 | Full Year Full Year | |||
| Bemsig | 291 | 188 | 927 | 725 | 45 | 47 | 198 | 165 | 15.5 | 24.9 | 21.4 | 22.7 |
| Caljan | 554 | 424 | 1,527 | 1,176 | 118 | 93 | 276 | 207 | 21.4 | 21.8 | 18.1 | 17.6 |
| Hultafors Group | 1,648 | 1,041 | 5,544 | 3,641 | 241 | 182 | 860 | 561 | 14.6 | 17.5 | 15.5 | 15.4 |
| Latour Industries | 884 | 667 | 3,022 | 2,356 | 68 | 58 | 244 | 147 | 7.7 | 8.8 | 8.1 | 6.3 |
| Nord-Lock Group | 353 | 294 | 1,439 | 1,275 | 74 | 52 | 367 | 316 | 20.8 | 17.7 | 25.5 | 24.8 |
| Swegon | 1,523 | 1,376 | 5,824 | 5,614 | 177 | 160 | 718 | 721 | 11.6 | 11.6 | 12.3 | 12.8 |
| Eliminations | $-1$ | $-1$ | $-3$ | $-4$ | ۰ | 1 | ||||||
| 5,252 | 3,989 | 18,280 | 14,783 | 723 | 593 | 2,663 | 2,117 | 13.8 | 14.8 | 14.6 | 14.3 | |
| Part-owned subsidiaries | 71 | 64 | 287 | 245 | -6 | 7 | 3 | 11 | $-8.9$ | 11.5 | 1.0 | 4.5 |
| 5,323 | 4,053 | 18,567 | 15,028 | 717 | 600 | 2,666 | 2,128 | 13.5 | 14.8 | 14.4 | 14.2 | |
| Gain/loss from sale/purchase of | ||||||||||||
| businesses | -8 | $-12$ | $-51$ | $-38$ | ||||||||
| Other companies and items | $-18$ | $-15$ | $-53$ | $-38$ | ||||||||
| 5,323 | 4,053 | 18,567 | 15,028 | 691 | 573 | 2,562 | 2,052 | |||||
| Effect IFRS 16 | $\overline{a}$ | -8 | $\overline{c}$ | -6 | 5 | |||||||
| 5,323 | 4,053 | 18,567 | 15,028 | 683 | 575 | 2,556 | 2,057 |
| Operating capital 1 | Return on operating capital % | Growth in net sales, 2021 % | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2021 Trailing 12 |
2020 Trailing 12 |
2021 Trailing 12 |
2020 Trailing 12 |
Total | Organic | Currency | Acquisitions | |
| Bemsig | 1,711 | 1,346 | 11.6 | 12.2 | 27.9 | 8.7 | $-1.9$ | 19.8 | |
| Caljan | 2,551 | 2,706 | 10.8 | 7.6 | 29.9 | 33.9 | $-3.0$ | ||
| Hultafors Group | 4,763 | 3,853 | 18.1 | 14.6 | 52.3 | 20.7 | $-2.6$ | 29.5 | |
| Latour Industries | 2,765 | 2,233 | 8.8 | 6.6 | 28.3 | 14.0 | $-1.7$ | 14.5 | |
| Nord-Lock Group | 1,199 | 1,207 | 30.6 | 26.2 | 12.9 | 17.2 | $-3.6$ | ||
| Swegon | 3,265 | 3,239 | 22.0 | 22.3 | 3.7 | 3.4 | $-1.6$ | 2.0 | |
| Total | 16,254 | 14,584 | 15.2 | 13.4 | 23.7 | 13.6 | $-2.2$ | 11.3 |
1 Calculated as total assets less cash and other interest-bearing assets and less non-interest-bearing liabilities. Calculated on the average for the past 12 months.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| Net sales | 291 | 188 | 927 | 725 |
| EBITDA | 55 | 51 | 217 | 178 |
| EBITDA 1 | 48 | 49 | 207 | 171 |
| EBITA 1 | 45 | 47 | 199 | 166 |
| EBIT 1 | 45 | 47 | 198 | 165 |
| EBITA $\%$ 1 | 15.6 | 25.0 | 21.5 | 22.9 |
| EBIT % 1 | 15.5 | 24.9 | 21.4 | 22.7 |
| Total growth % | 54.3 | 38.4 | 27.9 | 46.0 |
| Organic % | 6.9 | 8.3 | 8.7 | 4.2 |
| Exchange effects % | $-0.7$ | $-2.1$ | $-1.9$ | $-0.3$ |
| Acquisitions % | 45.4 | 30.6 | 19.8 | 40.6 |
| Average number of employees | 482 | 246 | 475 | 266 |
| 1 Excl. IFRS 16. |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK \, m)$ | Q4 | Q 4 | Full Year | Full Year |
| Elvaco | 49 | 38 | 166 | 148 |
| Bastec | 16 | 16 | 61 | 65 |
| Produal | 94 | 71 | 335 | 267 |
| Sensortec | 11 | 11 | 48 | 55 |
| S+S Regeltechnik | 57 | 53 | 217 | 193 |
| Elsys | 16 | 55 | ||
| Greystone Energy Systems | 50 | 50 | ||
| Elimination | -2 | -1 | -4 | $-2$ |
| 291 | 188 | 927 | 725 | |
| Pro forma adjustment 1 | 168 | |||
| Trailing 12 month pro forma | 1,095 |
1 Pro forma for completed acquisitions.
Bemsiq is a group of innovative and fast-growing companies providing products in building automation and energy metering. Bemsiq's mission is to accelerate the journey towards SMART and GREEN commercial buildings by being a leading global supplier of sensor, control and connectivity technologies and products.
| (MEUR) | 2021 Q4 |
2020 04 |
2021 Full Year |
2020 Full Year |
|---|---|---|---|---|
| Net sales | 54.6 | 40.9 | 150.6 | 112.1 |
| EBITDA | 12.3 | 9.2 | 29.6 | 21.3 |
| EBITDA 1 | 12.2 | 9.1 | 29.3 | 21.0 |
| EBITA 1 | 11.8 | 8.9 | 27.8 | 20.3 |
| EBIT 1 | 11.7 | 8.8 | 27.2 | 19.7 |
| EBITA % 1 | 21.6 | 22.0 | 18.4 | 18.1 |
| EBIT % 1 | 21.4 | 21.8 | 18.1 | 17.6 |
| Total growth % | 30.7 | 69.4 | 29.9 | 21.6 |
| Organic % | 31.3 | 74.4 | 33.9 | 22.3 |
| Exchange effects % | $-0.5$ | $-2.8$ | $-3.0$ | $-0.6$ |
| Acquisitions % | ||||
| Average number of employees | 623 | 502 | 580 | 493 |
| $1.7 - 1.7700AC$ |
$1$ Excl. IFRS 16.
| (MEUR) | 2021 04 |
2020 04 |
2021 Full Year |
2020 Full Year |
|---|---|---|---|---|
| Telescopics | 23.4 | 15.3 | 75.6 | 60.3 |
| Document Handling & Labelling | 8.7 | 5.5 | 17.7 | 10.0 |
| Automated Solutions | 9.6 | 10.6 | 21.9 | 18.2 |
| Aftermarket | 12.9 | 9.5 | 35.4 | 23.7 |
| 54.6 | 40.9 | 150.6 | 112.1 |
Caljan is a global supplier of automation technology for parcel handling in the logistics and e-commerce sectors. Calian's products help packing companies, distributors and manufacturers around the world to optimise their supply chains. Flows are increased, costs are reduced and working environments are made safer and more ergonomic. Caljan has its head office in Aarhus, Denmark, and subsidiaries in the USA and several European countries.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK \, m)$ | Q4 | Q4 | Full Year | Full Year |
| Net sales | 1,648 | 1,041 | 5,544 | 3,641 |
| EBITDA | 280 | 202 | 981 | 628 |
| EBITDA 1 | 265 | 194 | 935 | 602 |
| EBITA 1 | 248 | 187 | 881 | 573 |
| EBIT 1 | 241 | 182 | 860 | 561 |
| EBITA % 1 | 15.0 | 17.9 | 15.9 | 15.7 |
| EBIT $\%$ 1 | 14.6 | 17.5 | 15.5 | 15.4 |
| Total growth % | 58.3 | 20.2 | 52.3 | 25.7 |
| Organic % | 13.8 | 16.2 | 20.7 | 7.3 |
| Exchange effects % | 0.1 | $-4.6$ | $-2.6$ | $-1.8$ |
| Acquisitions % | 38.9 | 8.4 | 29.5 | 19.3 |
| Average number of employees | 1,768 | 981 | 1,686 | 977 |
1 Excl. IFRS 16.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK \, m)$ | 04 | 04 | Full Year | Full Year |
| PPE/Workwear | 1,139 | 625 | 3,701 | 2,066 |
| Hardware | 509 | 416 | 1,843 | 1,575 |
| 1.648 | 1.041 | 5.544 | 3,641 | |
| Pro forma adjustment 1 | 449 | |||
| Trailing 12 month pro forma | 5,993 | |||
| _ _ _ _ _ |
1 Pro forma for completed acquisitions.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK_m)$ | Q4 | 04 | Full Year | Full Year |
| Net sales | 884 | 667 | 3,022 | 2,356 |
| EBITDA | 147 | 85 | 397 | 254 |
| EBITDA 1 | 83 | 73 | 299 | 207 |
| EBITA 1 | 71 | 63 | 257 | 167 |
| EBIT 1 | 68 | 58 | 244 | 147 |
| EBITA % 1 | 8.0 | 9.4 | 8.5 | 6.9 |
| EBIT % 1 | 7.7 | 8.8 | 8.1 | 6.3 |
| Total growth % | 32.6 | $-1.1$ | 28.3 | $-8.6$ |
| Organic % | 7.4 | $-2.1$ | 14.0 | $-11.1$ |
| Exchange effects % | $-0.4$ | $-3.4$ | $-1.7$ | $-1.9$ |
| Acquisitions % | 23.9 | 4.5 | 14.5 | 4.8 |
| Average number of employees | 1,817 | 1,257 | 1,606 | 1,281 |
$1$ Excl. IFRS 16.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK_m)$ | 04 | 04 | Full Year | Full Year |
| Aritco Group | 326 | 244 | 1,068 | 843 |
| Vimec | 143 | 147 | 490 | 450 |
| VEGA | 70 | 245 | ||
| MS Group | 136 | 115 | 511 | 470 |
| LSAB | 138 | 119 | 524 | 445 |
| Densig | 75 | 44 | 206 | 159 |
| Elimination | -4 | -3 | $-22$ | $-11$ |
| 884 | 667 | 3,022 | 2,356 | |
| Pro forma adjustment 1 | 207 | |||
| Trailing 12 month pro forma | 3,229 |
1 Pro forma for completed acquisitions.
Hultafors Group offers products in the Personal Protective Equipment/Workwear and Hardware sectors. The products are marketed under brands with strong positions in their respective markets: Snickers Workwear, Hultafors, Solid Gear, EMMA Safety Footwear, Toe Guard, Hellberg Safety, Wibe Ladders, CLC Work Gear, Johnson Level & Tool, EripioWear, Kuny's, Fristads, Kansas and Leijona. Hultafors Group is also a distributor for the German manufacturing company Fein in the Swedish market.
Latour Industries consists of a number of operating areas, each with its own business concept and business model. Our ambition is to develop independent entities within the business area, so that they are eventually able to become established as separate business areas within Latour.
| $(SEK_m)$ | 2021 04 |
2020 04 |
2021 Full Year |
2020 Full Year |
|---|---|---|---|---|
| Net sales | 353 | 294 | 1,439 | 1,275 |
| EBITDA | 93 | 70 | 443 | 380 |
| EBITDA 1 | 85 | 63 | 412 | 353 |
| EBITA 1 | 76 | 54 | 375 | 326 |
| EBIT 1 | 74 | 52 | 367 | 316 |
| $EBITA$ % 1 EBIT % 1 |
21.4 20.8 |
18.5 17.7 |
26.1 25.5 |
25.5 24.8 |
| Total growth % | 20.3 | $-11.1$ | 12.9 | $-12.0$ |
| Organic % | 18.9 | $-4.8$ | 17.2 | $-10.1$ |
| Exchange effects % | 1.2 | $-6.6$ | $-3.6$ | $-2.1$ |
| Acquisitions % | ||||
| Average number of employees | 638 | 575 | 617 | 566 |
$1$ Excl. IFRS $16$ .
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| (SEK m) | 04 | 04 | Full Year | Full Year |
| EMEA | 153 | 132 | 649 | 564 |
| Americas | 110 | 72 | 396 | 331 |
| Asia Pacific | 90 | 90 | 394 | 379 |
| 353 | 294 | 1.439 | 1,275 | |
| Pro forma adjustment 1 | - |
$1,439$
Trailing 12 month pro forma
1 Pro forma for completed acquisitions.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK_m)$ | Q4 | Q4 | Full Year | Full Year |
| Net sales | 1,523 | 1,376 | 5,824 | 5,614 |
| EBITDA | 221 | 195 | 871 | 867 |
| EBITDA 1 | 199 | 181 | 807 | 806 |
| EBITA 1 | 181 | 164 | 733 | 736 |
| EBIT 1 | 177 | 160 | 718 | 721 |
| EBITA % 1 | 11.9 | 11.9 | 12.6 | 13.1 |
| EBIT $\%$ 1 | 11.6 | 11.6 | 12.3 | 12.8 |
| Total growth % | 10.7 | $-6.6$ | 3.7 | $-6.2$ |
| Organic % | 9.1 | $-5.5$ | 3.4 | $-7.0$ |
| Exchange effects % | 0.7 | $-4.4$ | $-1.6$ | $-2.1$ |
| Acquisitions % | 0.8 | 3.5 | 2.0 | 3.0 |
| Average number of employees | 2,673 | 2,803 | 2,655 | 2,625 |
$1$ Excl. IFRS $16$
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK_m)$ | 04 | 04 | Full Year | Full Year |
| Sweden | 338 | 291 | 1,268 | 1,178 |
| Rest of Nordic region | 255 | 248 | 1,073 | 1,085 |
| Rest of world | 930 | 837 | 3,483 | 3,351 |
| 1.523 | 1.376 | 5,824 | 5,614 | |
| Pro forma adjustment 1 | 4 | |||
| Trailing 12 month pro forma | 5,828 |
1 Pro forma for completed acquisitions.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| $(SEK_m)$ | 04 | 04 | Full Year | Full Year |
| Air Handling Unit | 452 | 377 | 1,638 | 1,548 |
| Cooling Heating | 278 | 277 | 1,158 | 1,194 |
| Room Unit | 353 | 311 | 1,270 | 1,269 |
| Services | 116 | 111 | 439 | 410 |
| Residential | 145 | 140 | 575 | 544 |
| North America | 84 | 76 | 329 | 322 |
| UK | 185 | 166 | 756 | 664 |
| Eliminations | -90 | -82 | $-341$ | -335 |
| 1.523 | 1.376 | 5.824 | 5.614 |
Nord-Lock Group is a world leader in secure bolting solutions. The Group offers a wide range of innovative technologies including Nord-Lock wedge-locking, Superbolt multi-jackbolt tensioning, Boltight hydraulic tensioning and Expander System pivot technology. With a global sales organization and international partners the customers benefit from bolting expertise and the optimum solution for any bolting challenge.
Swegon provides components and innovative system solutions that create a good indoor climate and contribute to significant energy savings in all types of buildings. Swegon's products constitute a turnkey solution for the perfect indoor climate.
In order to facilitate the evaluation of Latour's net asset value, Latour provides an estimated range of the value (Enterprise Value) for each business area based on EBIT multiples. A detailed description can be found on page 31 of Latour's Annual Report for 2020.
In some cases, the valuation multiples for comparable companies span over a very big range. For this reason, the multiples may be adjusted in order to avoid unreasonable values. The indicative value stated below is not a complete market valuation of Latour's holdings.
During the period, the net asset value increased to SEK 216 per share from SEK 153 at the start of the year. The net asset value consequently increased by 43.4 per cent, adjusted for dividends, measured against SIXRX which increased by 39.3 per cent.
For some time, Latour's quideline for the net asset value has been considerably lower than the value that the stock market assigns to Latour's listed share. The share price was SEK 369 at 31 December 2021, compared with the indicated net asset value of SEK 216. As stated above, Latour does not claim that the valuation of the wholly-owned industrial operations is anything other than a cautious indication. A net asset value can be calculated on a number of different bases. For example, the industrial operations as a whole could be measured against other established listed industrial groups with mixed industrial holdings and a clear growth agenda where the EV/EBIT multiple for these companies is significantly higher.
| SEK m | Net sales 1 | EBIT | EBIT multiple | Valuation 2 Range |
Valuation 2 Average |
vatuation- SEK/share 3 Range |
||
|---|---|---|---|---|---|---|---|---|
| Bemsig | 1,095 | 221 | $18 -$ -22 |
4,865 $3,981 -$ |
4,423 | 6 | ۳ | 8 |
| Caljan | 1,527 | 276 | 20 24 $\overline{\phantom{a}}$ |
$5,520 -$ 6,624 |
6,072 | 9 | $\overline{\phantom{0}}$ | 10 |
| Hultafors Group | 5,993 | 906 | 13 17 $\overline{\phantom{a}}$ |
$11,778 -$ 15,402 |
13,590 | 18 | $\overline{\phantom{0}}$ | 24 |
| Latour Industries | 3,229 | 263 | 16 20 $\overline{\phantom{a}}$ |
$4,208 -$ 5,260 |
4,734 | 6 | $\overline{\phantom{0}}$ | 8 |
| Nord-Lock Group | 1,439 | 367 | 15 19 $\overline{\phantom{a}}$ |
6,973 $5,505 -$ |
6,239 | 9 | $\overline{\phantom{a}}$ | 11 |
| Swegon | 5,828 | 717 | $16 -$ 20 |
$11,472 -$ 14,340 |
12,906 | 18 | - | 22 |
| 19,111 | 2,750 | $42,464 -$ 53,464 |
66 | $\overline{\phantom{a}}$ | 84 | |||
| Industrial operations valuation, average | 47,964 | 75 | ||||||
| Listed shares (see table on page 11 for breakdown) | 98,438 | 154 | ||||||
| Latour Future Solutions | 68 | 0 | ||||||
| Unlisted part-owned holdings Neuffer 4 , 66.1 % 0xeon 4 , 31.3 % |
149 18 |
0 0 |
||||||
| Other assets Short trading portfolio |
-4 | 0 | ||||||
| Dilution effect of option programme | $-345$ | 0 | ||||||
| Consolidated net debt (excl IFRS 16) | $-8,443$ | $-13$ | ||||||
| Estimated value | 137,845 | 216 | ||||||
| $(132 345 - 143 346)$ | (207 | $\overline{\phantom{a}}$ | 224) |
1 Trailing 12 months for current company structure (proforma). EBIT is, as appropriate, reported before restructuring costs.
2 EBIT and EV/sales recalculated taking into consideration the listed share price on 31 of December 2021 for comparable companies in each business area.
3 Calculated on the basis of the number of outstanding shares.
4 Valued according to the book value.
Net asset discount/premium
$\sim$ $\sim$ $\sim$
During the year, the value of the investment portfolio increased by 44.6 per cent when adjusted for portfolio changes and dividends, while the benchmark index (SIXRX) increased by 39.3 per cent.
31.0 per cent of the shares in CTEK AB were acquired in the third quarter when the company began trading on the Nasdaq Stockholm market. CTEK is a leading global supplier of premium battery chargers.
| Cost | Listed share price 2 | Market value | Share of votes | Share of equity | ||
|---|---|---|---|---|---|---|
| Share 1 | Number | SEK m | SEK | SEK m | $\%$ | $\%$ |
| Alimak Group | 16,016,809 | 2,134 | 114 | 1,832 | 29.7 | 29.6 |
| Assa Abloy 3 | 105,495,729 | 1,697 | 276 | 29,138 | 29.5 | 9.5 |
| CTEK | 15,280,810 | 1,054 | 202 | 3,088 | 31.0 | 31.0 |
| Fagerhult | 84,708,480 | 1,899 | 61 | 5,159 | 48.1 | 47.8 |
| HMS Networks | 12,109,288 | 250 | 558 | 6,757 | 26.0 | 25.9 |
| Nederman | 10,538,487 | 306 | 218 | 2,297 | 30.0 | 30.0 |
| Securitas 3 | 39,732,600 | 1,081 | 125 | 4,953 | 29.6 | 10.9 |
| Sweco 34 | 97,867,440 | 479 | 170 | 16,657 | 21.2 | 26.9 |
| Tomra 5 | 31,210,000 | 1,605 | 631 NOK | 20,186 | 21.1 | 21.1 |
| Troax | 18,060,000 | 397 | 464 | 8,371 | 30.2 | 30.1 |
| Total | 10,903 | 98,438 |
1 All holdings are reported as associated companies in the balance sheet.
2 The last price paid is used as the listed share price.
3 Due to the limited trading in class A shares in Sweco, and the fact that the class A shares in Assa Abloy and Securitas are unlisted, they have been given the same listed share price as the companies' class B shares. Holdings consisting of both class A and B shares are reported in the table as unit.
4 The cost of the class B shares are SEK 34 m higher than in the parent company through the exercise of call options.
5 At the end of the report period, the listed share price was NOK 631 which has been translated to SEK at the exchange rate on the balance sheet date.
Movements in investment portfolio values (SEK billion). The figures include acquired and divested shares but not dividends.
* Refers to acquisition in CTEK.
The Group's profit after financial items was SEK 4,985 m (5,753 m). Profit after tax was SEK 4,381 m (5,324 m), which is equivalent to SEK 6.85 (8.32) per share. A revaluation of the holding in Alimak has adversely impacted the income statement by SEK -282 m.
The Group's cash in hand and liquid investments reached SEK 1,516 m (4,033 m). Interest-bearing debt, excluding pension liabilities and lease liabilities, totalled SEK 9,866 m (8,778 m). The Group's net debt was SEK 9,513 m (5,273 m). Net debt, excluding lease liabilities, was SEK 8,443 m (4,613 m). The equity ratio was 88 (86) per cent calculated on reported equity in relation to total assets, including undisclosed surpluses in associated companies.
In the first quarter, Latour updated the base prospectus for its existing MTN programme and, at the same time, increased the framework amount to SEK 12 billion at the Swedish Financial Supervisory Authority. Four new bond loans totalling SEK 2.200 m were issued in June. Another bond loan of SEK 1,000 m was issued in September and in November two bond loans were issued totalling SEK 1,200 m. As at 31 December 2021, the MTN programme had an outstanding balance of SEK 9,050 m.
There have been no transactions with related parties that have had a material effect on the results or financial position of the Group.
During the period, SEK 835 m (604 m) was invested in property, plant and equipment, of which SEK 417 m (310 m) was machinery and equipment, SEK 0 m (13 m) was vehicles, and SEK 418 m (281 m) was buildings. Fixed assets in newly acquired companies account for SEK 467 m (127 m) of investments for the year.
The parent company's profit after financial items was SEK 1,823 m (3,328 m). The parent company's equity ratio was 57 (66) per cent.
The number of class A shares issued is 47,629,848 and the number of class B shares is 592,210,152. Not including repurchased shares, the number of outstanding shares at 31 December 2021 amounted to 639,322,800. At the end of the period, Latour holds 517,200 repurchased class B shares.
The total number of issued call options is 2,269,200, which give the right to purchase the same number of shares.
Hultafors Group acquired Telesteps AB on 1 February. Bemsiq signed an agreement for the acquisition of Consens GmbH on 7 February. Latour Industries acquired Esse-Ti S.r.l. on 9 February.
The Board of Directors proposes an increased regular dividend of SEK 3.30 (3.00) per share. In absolute terms, this corresponds to a dividend payout of SEK 2,110 m.
The main risk to which the Group and the parent company are exposed is the risk attributable to adverse changes in the values of financial instruments, including a general decline in the stock market or in the value of an individual holding. This includes uncertainties relating to changes in exchange rates and interest rates. Latour has a well-diversified holding of shares, spread across ten listed holdings and five wholly-owned business areas. This means that the development and performance of an individual holding will not have a drastic impact on the portfolio as a whole. As the wholly-owned industrial operations have increased in size, Latour as a whole is influenced to a higher degree by changes attributable to these operations. On the whole, Latour is deemed to have a good risk diversification in its portfolio, which covers several industries, with a certain emphasis on sectors linked to the construction industry. Construction can also be divided into several dimensions, such as new builds or government-subsidised repair, conversion or extension work, locally or globally, and housing, office and industrial premises or infrastructure projects. No material risks are deemed to have arisen other than those described in Note 34 of Latour's 2020 Annual Report, except for the possible consequences of the coronavirus pandemic which have been commented on in other sections of this report.
This interim report has been prepared in accordance with the Swedish Annual Accounts Act and IAS 34 Interim Reporting in respect of the Group, and in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board in respect of the parent company.
Changes to accounting standard requirements that came into effect on 1 January 2021 have not had any impact on the Group's or the parent company's accounting as at 30 December 2021.
The Latour Group uses a number of economic indicators that are not defined in the set of accounting rules used by the Group, so-called alternative performance measures. Definitions of the economic indicators can be found on page 20 of this report and in Latour's latest Annual Report. For an explanation of how the financial performance measures have been calculated for the current and prior periods, please see the table in this report and Latour's latest Annual Report.
The Annual Reports for 1984 to 2020 are available for viewing on Latour's website www.latour.se.
The Nomination Committee for the Annual General Meeting on 10 May 2022 comprises the following members:
Jan Svensson, Chairman (Förvaltnings AB Wasatornet including related entities), Eric Douglas (Wasatornet Holding AB including related entities), Fredrik Palmstierna (own holding including related entities) and Johan Nordström (Skirner AB).
The Nomination Committee can be contacted through Latour's website www.latour.se under Corporate Governance, Nomination Committee.
Gothenburg, 11 February 2022 Johan Hjertonsson President and CEO
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK m | 04 | Q 4 | Full Year | Full Year |
| Net sales | 5,324 | 4,053 | 18,567 | 15,028 |
| Cost of goods sold | $-3,344$ | $-2,472$ | $-11,479$ | $-9,151$ |
| Gross profit | 1,980 | 1,581 | 7,088 | 5,877 |
| Sales costs | $-818$ | $-567$ | $-2,807$ | $-2,254$ |
| Administrative costs | $-380$ | $-314$ | $-1,327$ | $-1,189$ |
| Research and development costs | $-143$ | $-112$ | $-476$ | $-406$ |
| Other operating income | 68 | 39 | 190 | 134 |
| Other operating expenses | $-24$ | $-52$ | $-112$ | $-105$ |
| Operating profit | 683 | 575 | 2,556 | 2,057 |
| Income from interests in associates | 409 | 999 | 2,379 | 3,977 |
| Income from portfolio management | 11 | 12 | $-8$ | |
| Management costs | -8 | -8 | $-28$ | $-28$ |
| Profit before financial items | 1,095 | 1,566 | 4,919 | 5,998 |
| Finance income | 48 | 22 | 186 | 31 |
| Finance expense | $-39$ | $-142$ | $-120$ | $-276$ |
| Profit after financial items | 1,104 | 1,446 | 4,985 | 5,753 |
| Taxes | $-171$ | $-157$ | $-604$ | $-429$ |
| Profit for the period | 933 | 1,289 | 4,381 | 5,324 |
| Attributable to: | ||||
| Parent company shareholders | 932 | 1,286 | 4,377 | 5,320 |
| Non-controlling interests | 1 | 3 | 4 | 4 |
| Earnings per share regarding profit attributable to parent company shareholders | ||||
| Basic share, SEK | 1.46 | 2.01 | 6.85 | 8.32 |
| Diluted share, SEK | 1.45 | 2.00 | 6.82 | 8.29 |
| Average number of basic shares outstanding | 639,374,974 | 639,379,500 | 639,409,289 | 639,338,951 |
| Average number of diluted shares outstanding | 641,644,174 | 641,502,400 | 641,454,398 | 641,434,414 |
| Number of outstanding shares | 639,322,800 | 639,379,500 | 639,322,800 | 639,379,500 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK m | Q 4 | Q 4 | Full Year | Full Year |
| Profit for the period | 933 | 1,289 | 4,381 | 5,324 |
| Other comprehensive income: | ||||
| Items that will not be recycled to the income statement | ||||
| Restatement of net pension obligations | 8 | 3 | 8 | 3 |
| 8 | 3 | 8 | 3 | |
| Items that may subsequently be recycled to the income statement | ||||
| Change in translation reserve for the period | 140 | $-531$ | 418 | $-571$ |
| Change in hedging reserve for the period | $-12$ | 167 | $-58$ | 125 |
| Change in associated companies' equity | 102 | $-234$ | $-239$ | -994 |
| 230 | $-598$ | 121 | $-1,440$ | |
| Other comprehensive income, net after tax | 238 | $-595$ | 129 | $-1,437$ |
| Comprehensive income for the period | 1,171 | 694 | 4,510 | 3,887 |
| Attributable to: | ||||
| Parent company shareholders | 1,167 | 691 | 4,506 | 3,883 |
| Non-controlling interests | 4 | 3 | 4 | 4 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK m | Q 4 | Q4 | Full Year | Full Year |
| Operating cash flows before movements in working capital | 759 | 591 | 2,681 | 2,120 |
| Movements in working capital | $-74$ | 379 | $-909$ | 215 |
| Operating cash flows | 685 | 970 | 1,772 | 2,335 |
| Acquisitions of subsidaries | $-785$ | $-20$ | $-2,289$ | $-692$ |
| Sale of subsidaries | ||||
| Other investments | -66 | $-146$ | $-282$ | $-530$ |
| Portfolio management | 198 | 528 | -86 | 3,224 |
| Cash flow after investments | 32 | 1,332 | $-885$ | 4,337 |
| Financial payments | 534 | $-795$ | $-1,701$ | $-1,235$ |
| Cash flow for the period | 566 | 537 | $-2,586$ | 3,102 |
| SEK m | 2021/12/31 | 2020/12/31 |
|---|---|---|
| ASSETS | ||
| Goodwill | 12,266 | 10,063 |
| Other intangible assets | 329 | 241 |
| Property, plant and equipment | 3,020 | 2,072 |
| Financial assets | 22,723 | 20,440 |
| Inventories etc. | 3,796 | 2,127 |
| Current receivables | 4,287 | 3,110 |
| Cash and bank | 1,516 | 4,033 |
| Total assets | 47,937 | 42,086 |
| EQUITY AND LIABILITIES | ||
| Capital and reserves attributable to parent company shareholders | 31,553 | 29,067 |
| Non-controlling interests | 133 | 81 |
| Total equity | 31,686 | 29,148 |
| Inerest-bearing long-term liabilities | 10,502 | 7,509 |
| Non-interest-bearing long-term liabilities | 725 | 587 |
| Interest-bearing current liabilities | 661 | 2,016 |
| Non-interest-bearing current liabilities | 4,363 | 2,826 |
| Equity and liabilities | 47,937 | 42,086 |
| Share | Repurchased | 0ther | Profit brought | Non-controlling | ||
|---|---|---|---|---|---|---|
| SEK m | capital | treasury shares | reserves | forward | interests | Total |
| Opening balance 1 Jan 2020 | 133 | $-67$ | 442 | 25,502 | 80 | 26,090 |
| Total comprehensive income for the period | $-443$ | 4,329 | 1 | 3,887 | ||
| Issued call options | 11 | 11 | ||||
| Exercise of call options | 79 | $-25$ | 54 | |||
| Own shares repurchase | $-95$ | $-95$ | ||||
| Dividends | -799 | -799 | ||||
| Closing balance 31 December 2020 | 133 | $-83$ | $-1$ | 29,018 | 81 | 29,148 |
| Opening balance 1 Jan 2021 | 133 | $-83$ | $-1$ | 29,018 | 81 | 29,148 |
| Total comprehensive income for the period | 358 | 4,147 | 5 | 4,510 | ||
| Issued call options | 22 | 22 | ||||
| Exercise of call options | 102 | $-42$ | 60 | |||
| Own shares repurchase | $-183$ | $-183$ | ||||
| Dividends | $-1,918$ | $-1,918$ | ||||
| Closing balance 31 December 2021 | 133 | $-164$ | 357 | 31,227 | 133 | 31,686 |
| 2021/12/31 | 2020/12/31 | |
|---|---|---|
| Return on equity $(\% )$ | 14 | 19 |
| Return on total capital (%) | 11 | 15 |
| Equity ratio, incl IFRS 16 (%) | 66 | 69 |
| Equity ratio, excl IFRS 16 (%) | 68 | 70 |
| Adjusted equity ratio, incl IFRS $161$ (%) | 87 | 86 |
| Adjusted equity ratio, excl IFRS $161$ (%) | 88 | 86 |
| Adjusted equity 1 (SEK m) | 108,004 | 77,245 |
| Surplus value in associated companies 2 (SEK m) | 76,318 | 48,097 |
| Net debt/equity ratio 1 $(\%)$ 3 | 8.9 | 7.1 |
| Net debt/equity ratio 2 $(\%)$ 4 | 6.8 | 5.3 |
| Listed share price (SEK) | 369 | 200 |
| Repurchased shares | 517,200 | 460,500 |
| Average number of repurchased shares | 430,711 | 501,049 |
| Average number of employees | 7,684 | 6,251 |
| Issued call options corresponds to number of shares | 2,269,200 | 2,122,900 |
1 Incl. fair value gain in associated companies.
2 The difference between the carrying amount and market value.
3 The ratio of net debt to adjusted equity.
$^{\mathrm{4}}$ The ratio of net debt to the market vaule of total assets.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK m | Q 4 | Q 4 | Full Year | Full Year |
| Income from interests i Group companies | 970 | 499 | ||
| Income from interest in associates companies | 151 | 449 | 871 | 2,842 |
| Income from portfolio management | ||||
| Management costs | -6 | -6 | -22 | $-22$ |
| Profit before financial items | 145 | 443 | 1,819 | 3,319 |
| Interest income and similar items | 10 | 10 | 41 | 44 |
| Interest expense and similar items | $-10$ | $-16$ | $-37$ | $-35$ |
| Profit after financial items | 145 | 437 | 1,823 | 3,328 |
| Taxes | $\overline{\phantom{a}}$ | |||
| Profit for the period | 145 | 437 | 1,823 | 3,328 |
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK m | Q 4 | Q 4 | Full Year | Full Year |
| Profit for the period | 145 | 437 | 1,823 | 3,328 |
| Change in fair value reserve for the period | ۰. | $\overline{\phantom{a}}$ | ||
| Total other comprehensive income | ||||
| Comprehensive income for the period | 145 | 437 | 823,، | 3,328 |
| SEK m | 2021/12/31 | 2020/12/31 |
|---|---|---|
| ASSETS | ||
| Financial assets | 13,440 | 12,385 |
| Long-term receivables from Group companies | 7,300 | 5,650 |
| Current receivables from Group companies | 75 | 16 |
| Other current liabilities | 21 | 12 |
| Cash and bank | 390 | 706 |
| Total assets | 21,226 | 18,769 |
| EQUITY AND LIABILITIES | ||
| Equity | 12,152 | 12,348 |
| Interese-bearing long-term lilabilities | 9,050 | 6,400 |
| Non-interest-bearing long-term liabilities | ||
| Interese-bearing current liabilities | ||
| Non-interest-bearing current liabilities | 24 | 21 |
| Equity and liabilities | 21,226 | 18,769 |
| SEK m | 2021/12/31 | 2020/12/31 |
|---|---|---|
| Amount at beginning of year | 12,348 | 9,849 |
| Total comprehensive income for the period | 1,823 | 3,328 |
| Issued call options | 22 | 11 |
| Exercise of call options | -42 | 54 |
| Repurchased treasury shares | $-81$ | $-95$ |
| Dividends | $-1,918$ | -799 |
| Amount at end of year | 12,152 | 12,348 |
| $D$ evelopment by business area I Jan $2021 - 31$ bet $2021$ | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Industrial operations | |||||||||
| Hultafors | Latour | Nord-Lock | Portfolio | ||||||
| SEK m | Bemsiq | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | |||||||||
| External sales | 925 | 1,527 | 5,543 | 3,022 | 1,439 | 5,824 | 287 | 18,567 | |
| Internal sales | $\overline{c}$ | 1 | 3 | ||||||
| RESULT | |||||||||
| Operating profit | 198 | 276 | 860 | 244 | 367 | 718 | $-107$ | 2,556 | |
| Income from portfolio management | 2,363 | 2,363 | |||||||
| Finance income | 186 | ||||||||
| Finance expense | $-120$ | ||||||||
| Taxes | $-604$ | ||||||||
| Profit for the period | 4,381 | ||||||||
| OTHER DISCLOSURES | |||||||||
| Investments in: | |||||||||
| property, plant and equipment | 46 | 63 | 486 | 59 | 55 | 124 | $\overline{c}$ | $\sim$ | 835 |
| intangible assets | 538 | $\overline{c}$ | 908 | 611 | 39 | $\sim$ | 2,098 | ||
| Depreciation/amortisation | 9 | 21 | 75 | 55 | 45 | 89 | 279 | $\sim$ | 573 |
| Hultafors | Latour | Nord-Lock | Portfolio | ||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Bemsiq | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | |||||||||
| External sales | 723 | 1,176 | 3,641 | 2,356 | 1,274 | 5,613 | 245 | 15,028 | |
| Internal sales | $\overline{c}$ | 1 | 4 | ||||||
| RESULTS | |||||||||
| Operating result | 165 | 207 | 561 | 147 | 316 | 721 | $-60$ | 2,057 | |
| Income from portfolio management | 3,941 | 3,941 | |||||||
| Finance income | 31 | ||||||||
| Finance expense | $-276$ | ||||||||
| Taxes | $-429$ | ||||||||
| Profit for the period | 5,324 | ||||||||
| OTHER DISCLOSURES | |||||||||
| Investments in: | |||||||||
| property, plant and equipment | 18 | 177 | 139 | 33 | 151 | 73 | 13 | ٠ | 604 |
| intangible assets | 474 | 6 | 313 | 28 | 81 | 5 | ٠ | 908 | |
| Depreciation/amortisation | ٠ | 13 | 41 | 55 | 37 | 86 | 185 | × | 424 |
| SEK m | 2020/12/31 | Change in cash | Change in loans | Other changes | 2021/12/31 |
|---|---|---|---|---|---|
| Interest-bearing receivables | 22 | 23 | |||
| Swap | 200 | -89 | 111 | ||
| Cash | 4,033 | $-2,643$ | 126 | 1,516 | |
| Pensions provisions | $-91$ | $-137$ | $-228$ | ||
| Long-term liabilities | $-7,420$ | $-1,865$ | $-989$ | $-10,274$ | |
| Utilised bank overdraft facilities | -85 | $-29$ | $-114$ | ||
| Interest-bearing current liabilities | $-1,932$ | 1,385 | $-547$ | ||
| Interest-bearing net debt | $-5.273$ | $-2.643$ | $-509$ | $-1.088$ | $-9.513$ |
| SEK m | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| Net sales, SEK m | 18,567 | 15,028 | 13.738 | 11,785 | 9,930 |
| Operating profit, SEK m | 2,556 | 2.057 | 1,819 | 1,397 | 1,125 |
| Income from interest in associated companies, SEK m | 2,379 | 3,977 | 3,955 | 1,278 | 2,006 |
| Income from portfolio management, SEK m | $-16$ | $-36$ | 194 | -8 | |
| Profit after finance items, SEK m | 4,985 | 5.753 | 5,725 | 2,646 | 3,069 |
| Earnings per share, SEK | 6.85 | 8.32 | 8.33 | 3.66 | 4.37 |
| Return on equity, % | 14 | 19 | 22 | 11 | 14 |
| Return on total capital, % | 11 | 15 | 17 | 9 | 13 |
| Adjusted equity ratio, % | 88 | 86 | 86 | 86 | 88 |
| Net debt/equity ratio, % | 8.9 | 7.1 | 11.3 | 9.2 | 7.9 |
Specification of acquisitions
| Contributed | ||||||||
|---|---|---|---|---|---|---|---|---|
| Transfer date | Country | Business area | Share | Revenues | EBIT aber of employees | |||
| 11 January 2021 | Vega Srl | Italy | Latour Industries | 100% | 245 | 44 | 200 | |
| 8 January 2021 | VM Kompensator A/S | Denmark | Latour Industries | 100% | 24 | 17 | ||
| 20 January 2021 | Elsys AB | Sweden | Bemsig | 70% | 55 | 20 | 8 | |
| 28 February 2021 | Fristads AB, Kansas AS | Sweden | Hultafors Group | 100% | 1,154 | 105 | 640 | |
| Kansas GmbH, Leijona Group OY | ||||||||
| 1 June 2021 | HK Instruments Ov | Finland | Bemsig | 100% | 54 | 12 | 53 | |
| 31 August 2021 | 720 Ov | Finland | Swegon | 100% | $-2$ | 8 | ||
| 31 August 2021 | Motala Hissar AB | Sweden | Latour Industries | 100% | 18 | 71 | ||
| 30 September 2021 | Greystone Energy System Inc. | Canada | Bemsig | 100% | 50 | 10 | 120 | |
| 29 September 2021 | Depac Anstalt | Lichtenstein | Latour Industries | 100% | 23 | 30 | ||
| 30 October 2021 | Scangrip A/S | Denmark | Hultafors Group | 100% | 52 | 8 | 50 |
Assets and liabilities in acquisitions
| Consolidated carrying amount | |
|---|---|
| Intangible assets | 441 |
| Property, plant and equipment | 472 |
| Inventories | 548 |
| Account receivable | 399 |
| Other receivable | 55 |
| Cash | 126 |
| Long-term liabilities | $-963$ |
| Current liabilities | -490 |
| Net indentifiable assets and liabilities | 1,139 |
| Group goodwill | 1,536 |
| Total purchase price | 2,675 |
| Additional purchase price | $-180$ |
| Cash settlement purchase price | 2,495 |
| Acquisition of non-cash items | -80 |
| Acquired cash | $-126$ |
| Effect of Group cash | 2,289 |
All acquisitions have been made with the aim of strengthening and developing the Latour Group's existing operations. The acquisition cost calculations are preliminary and may change if new information becomes available.
Transaction costs for acquisitions made during the period amount to SEK 47 m. Estimated additional purchase prices amounting to SEK 27 m for the acquisition of VM Kompensator, SEK 65 m for the acquisition of Vega, SEK 12 m for the acquisition of HK Instruments and SEK 76 m for the acquisition of Depac have been booked.
THE GROUP 31 DEC 2021
| Financial assets | Derivatives | |||
|---|---|---|---|---|
| Available-for-sales | values at fair value | used for | Total carrying | |
| financial assets | via profit and loss | hedging purposes | amount | |
| FINANCIAL ASSETS | ||||
| Listed shares, management | 0 1 | $\Omega$ | ||
| Other long-term securities holdings | 542 | 54 | ||
| Other long-term receivables | 31 3 | 31 | ||
| Listed shares, trading | 0 1 | $\mathbf 0$ | ||
| Unrealised gains, currency derivatives | 130 2 | 130 | ||
| Other current receivables | 4 0 4 2 3 | 4,042 | ||
| Cash | 1 5 1 6 3 | 1,516 | ||
| Total | 184 | $\mathbf 0$ | 5,589 | 5,773 |
| FINANCIAL LIABILITIES | ||||
| Long-term loans | 9 4 2 9 3 | 9,429 | ||
| Bank overdraft facilities | 114 3 | 114 | ||
| Current loans | 3233 | 323 | ||
| Other liabilities | 2 7483 | 2,748 | ||
| Unrealised gains, currency derivatives | 2 2 | 2 | ||
| Total | $\overline{c}$ | $\mathbf 0$ | 12,614 | 12,616 |
1 Level 1 - valued at fair value based on quoted prices on an active market for identical assets.
2 Level 2 - valued at fair value based on other observable inputs for assets and liabilities than quoted price included in level 1.
3 Level 3 - valued at fair value based on inputs for assets and liabilities unobservable to the market.
The basis of fair value for listed financial assets is the quoted market price at the balance sheet date. The basis of fair value for unlisted financial assets is determined using valuation techniques, such as recent transactions, the price of comparable instruments or discounted cash flows.
Hedging instruments consist of forward exchange contracts and interest rate and currency swaps and are included in level 2. Valuation at fair value of forward exchange contracts is based on levels established by the bank on an active market.
The fair value of accounts receivable and other receivables, current receivables, cash and other liquid funds, accounts payable and other liabilities as well as long-term liabilities are estimated to have the same value as their carrying amount. Market interest is not believed to materially deviate from the discount rate for interest-bearing long-term liabilities and therefore the carrying amount is considered in essence equal to the fair value.
The Group's valuation process is carried out by the Group finance and treasury department where a team works with valuation of the financial assets and liabilities held by the Group.
THE GROUP 31 DEC 2021
| 2021 | 2020 | |
|---|---|---|
| SEK m | Full Year | Full Year |
| Renenue from goods | 17,551 | 14,161 |
| Renenue from services | 1,016 | 867 |
| 18,567 | 15,028 | |
| Fix-price contract | 14,598 | 11,672 |
| Time-and-materials contracts | 3,969 | 3,356 |
| 18,567 | 15,028 | |
| Sweden | 3,331 | 2,552 |
| Nordics, excl. Sweden | 2,733 | 2,343 |
| Europe, excl. Nordics | 8,707 | 7,215 |
| Other markets | 3,796 | 2,918 |
| 18,567 | 15,028 |
Latour's revenues are derived from a variety of operations that are conducted in more than a hundred subsidiaries.
| 2021 | 2020 | 2019 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q 1 |
| INCOME STATEMENT | |||||||||||||||
| Net sales | 18,567 | 5,324 | 4,433 | 4,823 | 3,987 | 15,028 | 4,053 | 3,692 | 3,605 | 3,678 | 13,738 | 3,647 | 3,339 | 3,567 | 3,185 |
| Cost of goods sold | 11,479 | -3,344 | $-2,788$ | -2,924 | $-2,423$ | $-9,151$ | $-2,472$ | -2,236 | -2,209 | $-2,234$ | $-8,301$ | $-2,219$ | -2,041 | -2,137 | -1,904 |
| Gross profit | 7,088 | 1,980 | 1,645 | 1,899 | 1,564 | 5,877 | 1,581 | 1,456 | 1,396 | 1,444 | 5,437 | 1,428 | 1,298 | 1,430 | 1,281 |
| Costs etc. for the operation | $-4,532$ | $-1,297$ | $-1,060$ | $-1,158$ | $-1,017$ | $-3,820$ | $-1,006$ | -860 | -935 | $-1,019$ | $-3,618$ | $-1,064$ | -855 | -831 | $-868$ |
| Operating profit | 2,556 | 683 | 585 | 741 | 547 | 2,057 | 575 | 596 | 461 | 425 | 1,819 | 364 | 443 | 599 | 413 |
| Total portfolio management | 2,363 | 412 | 620 | 616 | 715 | 3,941 | 991 | 836 | 2,469 | -355 | 3,965 | 1,029 | 350 | 1,209 | 1,377 |
| Profit before financial items | 4,919 | 1,095 | 1,205 | 1,357 | 1,262 | 5,998 | 1,566 | 1,432 | 2,930 | 70 | 5,784 | 1,393 | 793 | 1,808 | 1,790 |
| Net financial items | 66 | 9 | 17 | $-42$ | 82 | $-245$ | $-120$ | $-40$ | $-121$ | 46 | $-59$ | $-67$ | 31 | $-24$ | $\mathbf{1}$ |
| Profit after financial items | 4,985 | 1,104 | 1,222 | 1,315 | 1,344 | 5,753 | 1,446 | 1,382 | 2,809 | 116 | 5,725 | 1,326 | 824 | 1,784 | 1,791 |
| Taxes | $-604$ | $-171$ | $-164$ | $-136$ | $-133$ | $-429$ | $-157$ | 93 | $-67$ | $-112$ | $-415$ | $-79$ | $-133$ | $-113$ | $-90$ |
| Profit for the period | 4,381 | 933 | 1,058 | 1,179 | 1,211 | 5,324 | 1,289 | 1,289 | 2,742 | $\overline{4}$ | 5,310 | 1,247 | 691 | 1,671 | 1,701 |
| KEY RATIOS | |||||||||||||||
| Earnings per share, SEK | 6.85 | 1.46 | 1.65 | 1.84 | 1.89 | 8.32 | 2.01 | 2.02 | 4.29 | 0.01 | 8.33 | 1.98 | 1.08 | 2.61 | 2.66 |
| Cash flow for the period | $-2,586$ | 566 | $-851$ | 125 | $-2,426$ | 3,102 | 537 | 483 | 2,053 | 1,606 | 249 | 169 | 122 | $-1,171$ | 1,129 |
| Adjusted equity ratio, % | 88 | 88 | 86 | 87 | 88 | 86 | 86 | 85 | 82 | 80 | 86 | 86 | 87 | 88 | 87 |
| Adjusted equity | 108,004 108,004 | 91,673 | 91,363 | 83,820 | 77,245 | 77,245 | 77,112 | 67,933 | 59,626 | 71,398 | 71,398 | 65,229 | 66,481 | 62,720 | |
| Net asset value | 137,845 137,845 120,046 120,505 | 106,003 | 98,024 | 98,024 | 94,584 | 81,418 | 72,863 | 86,974 | 86,974 | 81,027 | 81,276 | 76,054 | |||
| Net asset value per share, SEK | 188 | 188 | 148 | 127 | 127 | 127 | 119 | ||||||||
| Listed share price, SEK | 216 369 |
216 369 |
272 | 281 | 166 226 |
153 200 |
153 200 |
211 | 169 | 114 142 |
136 153 |
136 153 |
130 | 137 | 125 |
| NET SALES | |||||||||||||||
| Bemsig | 927 | 291 | 220 | 210 | 206 | 725 | 188 | 166 | 173 | 197 | 497 | 136 | 114 | 122 | 125 |
| Caljan | 1,527 | 554 | 403 | 859 | 209 | 1,176 | 424 | 311 | 219 | 222 | 113 | 113 | $\mathbf 0$ | $\bf 0$ | $\mathbf 0$ |
| Hultafors Group | 5,546 | 1,648 | 1,310 | 1,353 | 1,113 | 3,641 | 1,041 | 915 | 839 | 846 | 2,896 | 866 | 693 | 689 | 648 |
| Latour Industries | 3,022 | 884 | 693 | 873 | 681 | 2,356 | 667 | 559 | 516 | 615 | 2,582 | 674 | 625 | 668 | 615 |
| Nord-Lock Group | 1,439 | 353 | 357 | 402 | 354 | 1,274 | 294 | 300 | 324 | 357 | 1,448 | 330 | 340 | 395 | 384 |
| Swegon | 5,824 | 1,523 | 1,374 | 1,796 | 1,361 | 5,614 | 1,376 | 1,372 | 1,472 | 1,394 | 5,986 | 1,473 | 1,505 | 1,639 | 1,370 |
| 18,280 | 5,252 | 4,356 | 5,675 | 3,924 | 14,783 | 3,990 | 3,622 | 3,542 | 3,631 | 13,519 | 3,591 | 3,276 | 3,512 | 3,142 | |
| Other companies and eliminations | 287 | 71 | 77 | 87 | 63 | 245 | 64 | 70 | 63 | 47 | 219 | 56 | 63 | 55 | 43 |
| 18,567 | 5,323 | 4,433 | 5,762 | 3,987 | 15,028 | 4,054 | 3,692 | 3,605 | 3,678 | 13,738 | 3,647 | 3,339 | 3,567 | 3,185 | |
| OPERATING PROFIT | |||||||||||||||
| Bemsiq | 198 | 45 | 58 | 45 | 50 | 165 | 47 | 41 | 35 | 42 | 84 | 21 | 21 | 21 | 20 |
| Caljan | 276 | 118 | 77 | 61 | 19 | 207 | 93 | 58 | 27 | 30 | 20 | 20 | $\mathbf 0$ | $\bf 0$ | 0 |
| Hultafors Group | 860 | 241 | 170 | 266 | 183 | 561 | 182 | 157 | 114 | 108 | 412 | 138 | 97 | 90 | 88 |
| Latour Industries | 244 | 68 | 57 | 57 | 62 | 147 | 58 | 46 | 13 | 29 | 173 | 39 | 53 | 46 | 36 |
| Nord-Lock Group | 367 | 74 | 98 | 97 | 99 | 316 | 52 | 83 | 84 | 97 | 411 | 71 | 94 | 124 | 121 |
| Swegon | 718 | 177 723 |
158 | 227 | 156 | 721 | 160 | 217 602 |
201 | 143 449 |
717 | 145 434 |
199 464 |
226 | 147 |
| 2,663 | 618 | 753 | 569 | 2,117 | 593 | 474 | 1,817 | 507 | 412 | ||||||
| Gain/loss from sale/purchase of busi Other companies and items |
-51 | -8 | -25 | -4 | -14 | -38 | -12 | 1 | -10 | -17 | 29 | -63 | -15 | 108 | $-1$ |
| -56 2,556 |
$-32$ 683 |
-9 584 |
-8 741 |
-9 546 |
$-22$ 2,057 |
-6 575 |
-4 599 |
$-7$ 457 |
-8 424 |
$-27$ 1,819 |
$-7$ 364 |
-6 443 |
$-17$ 598 |
$\overline{\mathbf{c}}$ 413 |
|
| OPERATING MARGIN (%) | |||||||||||||||
| Bemsiq | 21.4 | 15.5 | 26.2 | 21.4 | 24.4 | 22.7 | 24.9 | 25.0 | 20.0 | 21.1 | 16.9 | 15.7 | 18.5 | 17.4 | 16.1 |
| Caljan | 18.1 | 21.4 | 19.2 | 17.0 | 9.1 | 17.6 | 17.6 | 18.7 | 12.2 | 13.3 | 17.4 | 17.4 | 0.0 | $0.0\,$ | 0.0 |
| Hultafors Group | 15.5 | 14.6 | 13.0 | 18.0 | 16.5 | 15.4 | 17.5 | 17.1 | 13.6 | 12.8 | 14.2 | 15.9 | 13.9 | 13.3 | 13.6 |
| Latour Industries | 8.1 | 7.7 | 8.3 | 7.4 | 9.1 | 6.3 | 8.8 | 8.2 | 2.6 | 4.8 | 7.1 | 5.7 | 8.8 | 7.6 | 6.5 |
| Nord-Lock Group | 25.5 | 20.8 | 27.3 | 26.0 | 27.8 | 24.8 | 17.7 | 27.6 | 25.8 | 27.3 | 28.4 | 21.6 | 27.8 | 40.8 | 31.4 |
| Swegon | 12.3 | 11.6 | 11.5 | 14.5 | 11.5 | 12.8 | 11.6 | 15.8 | 13.7 | 10.2 | 12.0 | 9.9 | 13.2 | 10.7 | 10.7 |
| 14.6 | 13.8 | 14.2 | 15.9 | 14.5 | 14.3 | 14.8 | 16.6 | 13.4 | 12.4 | 13.4 | 12.1 | 14.2 | 13.1 | 13.1 |
Change in sales in comparable entities after adjustment for acquisitions and foreign exchange effects.
Earnings before interest, tax, depreciation of property, plant and equipment and amortisation of acquisition-related intangible assets, acquisition-related costs and income, and items impacting comparability.
Earnings before interest, tax, amortisation of acquisitionrelated intangible assets, acquisition-related costs and income, and items impacting comparability.
Earnings before interest, tax, amortisation of acquisitionrelated intangible assets, acquisition-related costs and income, and items impacting comparability, as a percentage of net sales.
Earnings before interest and tax.
Operating profit divided by net sales.
Total assets less cash and cash equivalents, other interestbearing assets and non-interest-bearing liabilities. Calculated on the average for the past 12 months.
Increase in revenue for the period as a percentage of the previous year's revenue.
Increase in revenue due to currency changes for the period as a percentage of the previous year's revenue.
Increase in revenue for the period, adjusted for acquisitions/disposals and exchange rate changes, as a percentage of the previous year's revenue adjusted for acquisitions and disposals.
Profit for the period divided by the number of outstanding shares in the period. Calculations: Jan-Dec 2021: 4,381/639,409,289 x 1000 = 6.85 Jan-Dec 2020: 5,324/639,338,951 x 1000 = 8.32
Jan-Dec 2021: $4,381/641,454,398 \times 1000 = 6.82$ Jan-Dec 2020: 5,324/641,434,414 x 1000 = 8.29
The ratio of shareholder equity to total assets.
The ratio of shareholder equity plus gains in associated companies to total assets including gains in associated companies.
Interest-bearing liabilities less cash and cash equivalents and interest-bearing receivables.
The ratio of net borrowings to either adjusted equity or the market value of total assets.
The ratio of net income booked in the income statement to average equity.
The ratio of profit/loss after financial items plus finance expense to average total assets.
The ratio of operating profit to average operating capital.
Dividends as a percentage of the share purchase price.
The ratio of operating profit to market value adjusted for net debt.
The difference between the company's assets and liabilities, when the investment portfolio (incl. associated companies) is recognised at market value and operative subsidiaries that are owned at the end of the period are recognised in an interval based on EBIT multiples for comparable listed companies in each business area.
Share of voting rights is calculated after deduction for repurchased shares.
Share of equity is calculated on total number of issued shares.
The amounts in tables and other charts have each been rounded off. There may therefore be minor differences in the totals due to rounding-off.
Johan Hjertonsson, President and CEO, tel. +46 (0)702-29 77 93. Anders Mörck, Chief Financial Officer, tel. +46 (0)706 46 52 11 or +46 (0)31 89 17 90.
Investment AB Latour invites you to participate in a conference call with Johan Hjertonsson and Anders Mörck commencing at 10 a.m. today.
The number to call is +46 (0)8 566 427 04. The conference will be broadcast on the Internet. To follow the presentation, please visit our website, www.latour.se.
The interim report for the period January - March 2022 will be published on 29 April 2022 The Annual General Meeting will be held on 10 May 2022 at Radisson Blu Scandinavia in Gothenburg The interim report for the period January - June 2022 will be published on 23 August 2022 The interim report for the period January - September 2022 will be published on $\delta$ November 2022
The information contained in this report constitutes information which Investment AB Latour (publ) is required to disclose under the EU Market Abuse Regulation. The information was provided by the above contact persons for publication on 11 February 2022, at 08.30 CET.
Investment AB Latour (publ) Corporate ID no. 556026-3237 J A Wettergrens gata 7, Box 336, SE-401 25 Gothenburg, Sweden Tel +46 31 89 17 90 [email protected], www.latour.se
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