Interim / Quarterly Report • Aug 23, 2021
Interim / Quarterly Report
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• During the first half of the year, the value of the investment portfolio increased by 22.2 per cent adjusted for changes in the portfolio. The benchmark index (SIXRX) rose 22.4 per cent.
• On 5 July, Swegon signed an agreement to acquire a majority shareholding of the Finnish software company 720° (Seven Twenty degrees). And on 9 July, Aritco, within Latour Industries, signed an agreement to acquire the entire shareholding of the Swedish company Motala Hissar.
1 The calculation of the net asset value on 20 August was based on the value of the investment portfolio at 1.00 p.m. on 20 August, and the same values as at 30 June 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 nine substantial holdings that had a market value of SEK 82 billion as at 30 June 2021. The wholly-owned industrial operations are grouped into five business areas: Caljan, Hultafors Group, Latour Industries, Nord-Lock Group and Swegon. They generate annual sales amounting to approximately SEK 16 billion.
"The development seen during the second quarter was very favourable for Latour. Industrial operations delivered record earnings with good organic growth. Although the pandemic is not over, the negative effects of measures such as restrictions and lockdowns gradually eased during the quarter. Should we encounter any further setbacks, we are well prepared to quickly adapt to new conditions as they arise. During the quarter, challenges regarding the supply of goods were significant. Component shortages, supply chain disruptions and increased raw material prices have affected our companies to varying extents. Product prices have been increased to compensate for rising raw material prices, not least that of steel.
Order intake for the quarter was up 51 per cent and invoiced sales 26 per cent when adjusted for acquisitions and foreign exchange effects. Prior-year comparatives have been negatively affected by the pandemic, although growth has been significant even compared to 2019. Our operations are well positioned in markets with good growth potential, as reflected in the reported strong growth.
Operating profit increased by 59 per cent in the quarter to SEK 753 m (473 m) with a strong operating margin of 15.9 (13.4) per cent. In absolute terms, this is our best quarter to date. This strong performance is driven to some extent by continued strict cost management but mostly by increased volumes.
We are maintaining our high investment rate and continuing to invest in product development, sales and marketing to retain our competitiveness and increase our market shares. The increasing volumes resulting from the strong growth of our industrial operations also require investments in production and logistics as well as the workforce, and several of our business areas are recruiting many new employees, which is pleasing.
Sustainability and digitalisation remain, as always, important focus areas for Latour. We have made great progress, but as owners we want to push for even greater progress. During the quarter, we began implementing TCFD (Task Force on Climate Related Financial Disclosures) at ownership level as well as across our business areas. TCFD aims to identify and analyse risks and opportunities linked to climate change, in both the short term and the long term. Following the extreme weather seen in various parts of the world this summer, the relevance has increased further for this work. We plan to publish the outcome of our analyses in our sustainability report for 2021.
The level of acquisition activity remains high. Produal, part of Latour Industries, acquired the Finnish company HK Instruments in May while Latour Future Solutions made an investment in Aqua Robur Technologies AB in June. After the second quarter came to an end, Swegon made an investment in the software company 720° to strengthen its digital services offering while Aritco signed an agreement to acquire Motala Hissar. Read more about our acquisitions on page 4.
Since the beginning of the year, the investment portfolio has increased by 22.2 per cent when adjusted for portfolio changes, while the benchmark index (SIXRX) increased by 22.4 per cent. Essentially all of our listed holdings have submitted their reports, showing favourable growth in order intake, invoicing and earnings, again confirming that we have quality companies in our portfolio. Acquisition activities are fervent here too, with, for example, ASSA ABLOY announcing four acquisitions during the quarter and Sweco three. The net asset value in Latour increased during the first half of the year by 25.4 per cent to SEK 188 per share.
All things considered, a very strong first half of the year, and we are pleased with how we have handled the pandemic thus far, in terms of both employee health and protecting and developing our holdings."
Johan Hjertonsson President and Chief Executive Officer
During the second quarter, order intake grew by 61 per cent to SEK 5,676 m (3,527 m), with organic growth accounting for 51 per cent of this. Invoiced sales rose 34 per cent to SEK 4,748 m (3,542 m), which represents a 26 per cent increase for comparable entities and when adjusted for foreign exchange effects. Operating profit in the wholly-owned industrial operations increased by 59 per cent during the quarter to SEK 753 m (474 m). The operating margin was 15.9 (13.4) per cent.
The above figures only include subsidiaries of the whollyowned business areas. See the separate report on page 5.
On 27 May, Produal, within Latour Industries, 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 offers 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 Aqua 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.
Earlier in the year, four acquisitions were finalised within our wholly-owned industrial operations. On 8 January, Densiq, within Latour Industries, 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.
In January, Latour Industries finalised the acquisition of the Italian company VEGA S.R.L. (VEGA) while Bemsiq, within Latour Industries, finalised the acquisition of the Swedish company Elsys. On 1 March, Hultafors Group finalised the acquisitions of Fristads AB, Kansas A/S, Kansas GmbH and Leijona Group Oy.
On 5 July, Swegon signed an agreement to acquire a majority shareholding of the Finnish software company 720° (Seven Twenty degrees). 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.
On 9 July, Aritco, within Latour Industries, signed an agreement to acquire the entire shareholding of the Swedish company Motala Hissar, a well-established and leading platform lift manufacturer. 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.
| Net sales | Operating profit | Operating margin % | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| SEK m | Q2 | Q2 | 6 mths | 6 mths | Q2 | Q2 | 6 mths | 6 mths | Q2 | Q2 | 6 mths | 6 mths |
| Caljan | 361 | 219 | 570 | 441 | 61 | 27 | 80 | 56 | 17.0 | 12.8 | 14.1 | 12.8 |
| Hultafors Group | 1,473 | 839 | 2,586 | 1,684 | 266 | 114 | 449 | 222 | 18.0 | 13.6 | 17.4 | 13.2 |
| Latour Industries | 974 | 689 | 1,861 | 1,501 | 102 | 48 | 214 | 119 | 10.4 | 7.0 | 11.5 | 7.9 |
| Nord-Lock Group | 376 | 324 | 729 | 681 | 97 | 84 | 196 | 181 | 26.0 | 25.8 | 26.9 | 26.6 |
| Swegon | 1,566 | 1,472 | 2,927 | 2,866 | 227 | 201 | 383 | 344 | 14.5 | 13.7 | 13.1 | 12.0 |
| Eliminations | - | -1 | -1 | -1 | - | - | - | - | - | - | - | - |
| 4,748 | 3,542 | 8,672 | 7,172 | 753 | 474 | 1,322 | 922 | 15.9 | 13.4 | 15.2 | 12.9 | |
| Part-owned subsidiaries | 75 | 63 | 138 | 111 | 4 | 2 | 5 | 2 | 5.0 | 3.5 | 3.5 | 1.7 |
| 4,823 | 3,605 | 8,810 | 7,283 | 757 | 476 | 1,327 | 924 | 15.7 | 13.2 | 15.1 | 12.7 | |
| Gain/loss from sale/purchase of | ||||||||||||
| businesses | - | - | - | - | -4 | -10 | -18 | -27 | ||||
| Other companies and items | - | - | - | - | -12 | -9 | -22 | -17 | ||||
| 4,823 | 3,605 | 8,810 | 7,283 | 741 | 457 | 1,287 | 880 | |||||
| Effect IFRS 16 | - | - | - | - | - | 4 | 1 | 6 | ||||
| 4,823 | 3,605 | 8,810 | 7,283 | 741 | 461 | 1,288 | 886 |
| Operating capital ¹ | Return on operating capital % | Growth in net sales, 2021 % | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||||||
| SEK m | Trailing 12 | Trailing 12 | Trailing 12 | Trailing 12 | Total | Organic | Currency | Acquisitions | |
| Caljan | 2,581 | 1,806 | 8.9 | 4.2 | 29.2 | 37.8 | -6.3 | - | |
| Hultafors Group | 4,063 | 3,532 | 19.4 | 12.9 | 53.5 | 30.0 | -5.2 | 24.6 | |
| Latour Industries | 3,827 | 3,350 | 11.1 | 7.6 | 24.0 | 18.2 | -3.0 | 8.2 | |
| Nord-Lock Group | 1,194 | 1,167 | 27.7 | 29.7 | 7.1 | 15.3 | -7.2 | - | |
| Swegon | 3,196 | 3,301 | 23.8 | 20.8 | 2.1 | 3.2 | -3.4 | 2.5 | |
| Total | 14,861 | 13,156 | 17.1 | 13.8 | 20.9 | 16.6 | -4.4 | 8.5 |
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 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (MEUR) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Net sales | 35.6 | 20.5 | 56.3 | 41.4 | 112.1 | 127.0 |
| EBITDA | 6.6 | 2.9 | 9.0 | 6.1 | 21.3 | 24.3 |
| EBITDA¹ | 6.6 | 2.8 | 8.9 | 5.9 | 21.0 | 24.0 |
| EBITA¹ | 6.2 | 2.7 | 8.2 | 5.6 | 20.3 | 22.9 |
| EBIT¹ | 6.1 | 2.5 | 7.9 | 5.3 | 19.7 | 22.4 |
| EBITA %¹ | 17.4 | 13.0 | 14.6 | 13.6 | 18.1 | 18.0 |
| EBIT %¹ | 17.0 | 12.2 | 14.1 | 12.8 | 17.6 | 17.6 |
| Total growth % | 73.3 | - | 35.9 | - | 21.6 | |
| Organic % | 75.4 | -22.9 | 37.8 | -9.1 | 22.3 | |
| Exchange effects % | -1.2 | 0.1 | -1.4 | 0.3 | -0.6 | |
| Acquisitions % | - | - | - | - | - | |
| Average number of employees | 568 | 487 | 547 | 484 | 493 | |
| ¹ Excl. IFRS 16. |
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (MEUR) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Telescopics | 22.9 | 13.4 | 32.0 | 28.3 | 59.5 | 64.0 |
| Document Handling & Labelling | 0.9 | 1.5 | 2.2 | 2.4 | 10.0 | 9.8 |
| Depot Automation Solutions | 4.3 | 1.1 | 7.9 | 1.5 | 18.2 | 24.6 |
| Aftermarket | 7.5 | 4.5 | 14.2 | 9.3 | 24.4 | 28.6 |
| 35.6 | 20.5 | 56.3 | 41.4 | 112.1 | 127.0 |
| (SEK m) | 2021 Q2 |
2020 Q2 |
2021 6 mths |
2020 6 mths |
2020 Full Year |
Trailing 12 mths |
|---|---|---|---|---|---|---|
| Net sales | 1,473 | 839 | 2,586 | 1,684 | 3,641 | 4,543 |
| EBITDA | 297 | 130 | 500 | 254 | 628 | 874 |
| EBITDA¹ | 286 | 123 | 481 | 241 | 602 | 842 |
| EBITA¹ | 272 | 116 | 458 | 227 | 573 | 804 |
| EBIT¹ | 266 | 114 | 449 | 222 | 561 | 788 |
| EBITA %¹ | 18.5 | 13.9 | 17.7 | 13.5 | 15.7 | 17.7 |
| EBIT %¹ | 18.0 | 13.6 | 17.4 | 13.2 | 15.4 | 17.3 |
| Total growth % | 75.6 | 21.7 | 53.5 | 26.0 | 25.7 | |
| Organic % | 36.9 | -3.1 | 30.0 | -1.1 | 7.3 | |
| Exchange effects % | -4.8 | -0.1 | -5.2 | 1.1 | -1.8 | |
| Acquisitions % | 34.7 | 25.8 | 24.6 | 26.0 | 19.3 | |
| Average number of employees | 1,676 | 978 | 1,667 | 980 | 977 | |
| ¹ Excl. IFRS 16. |
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| PPE/Workwear | 985 | 462 | 1,691 | 938 | 2,066 | 2,819 |
| Hardware | 488 | 376 | 895 | 746 | 1,575 | 1,724 |
| 1,473 | 839 | 2,586 | 1,684 | 3,641 | 4,543 | |
| Pro forma adjustment¹ | 807 | |||||
| Trailing 12 month pro forma | 5,350 |
¹ Pro forma for completed acquisitions.
Caljan is a global supplier of automation technology for parcel handling in the logistics and e-commerce sectors. Caljan'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.
Hultafors Group offers products in the Personal Protective Equipment/Workwear and Hardware segments. 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.
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Net sales | 974 | 689 | 1,861 | 1,501 | 3,081 | 3,441 |
| EBITDA | 129 | 77 | 269 | 176 | 425 | 520 |
| EBITDA¹ | 117 | 63 | 245 | 150 | 374 | 469 |
| EBITA¹ | 105 | 52 | 221 | 127 | 328 | 422 |
| EBIT¹ | 102 | 48 | 214 | 119 | 312 | 407 |
| EBITA %¹ | 10.8 | 7.6 | 11.9 | 8.5 | 10.7 | 12.3 |
| EBIT %¹ | 10.4 | 7.0 | 11.5 | 7.9 | 10.1 | 11.8 |
| Total growth % | 41.3 | -12.6 | 24.0 | -1.7 | 0.2 | |
| Organic % | 31.3 | -19.8 | 18.2 | -11.5 | -8.0 | |
| Exchange effects % | -2.6 | -1.4 | -3.0 | -0.1 | -1.6 | |
| Acquisitions % | 10.5 | 10.4 | 8.2 | 11.1 | 10.6 | |
| Average number of employees | 1,780 | 1,545 | 1,768 | 1,539 | 1,547 |
¹ Excl. IFRS 16.
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Bemsiq | 210 | 173 | 417 | 370 | 725 | 771 |
| Aritco Group | 258 | 183 | 505 | 405 | 843 | 942 |
| Vimec | 125 | 84 | 226 | 185 | 450 | 492 |
| VEGA | 64 | - | 121 | - | - | 121 |
| MS Group | 135 | 109 | 251 | 237 | 470 | 484 |
| LSAB | 140 | 105 | 268 | 236 | 445 | 478 |
| Densiq | 48 | 37 | 86 | 72 | 159 | 173 |
| Elimination | -7 | -2 | -13 | -3 | -11 | -20 |
| 974 | 689 | 1,861 | 1,501 | 3,081 | 3,441 | |
| Pro forma adjustment¹ | 272 |
Trailing 12 month pro forma 3,713
¹ Pro forma for completed acquisitions.
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Net sales | 376 | 324 | 729 | 681 | 1,275 | 1,323 |
| EBITDA | 117 | 99 | 234 | 212 | 380 | 402 |
| EBITDA¹ | 109 | 92 | 218 | 199 | 353 | 372 |
| EBITA¹ | 100 | 86 | 200 | 186 | 326 | 340 |
| EBIT¹ | 97 | 84 | 196 | 181 | 316 | 331 |
| EBITA %¹ | 26.5 | 26.5 | 27.4 | 27.3 | 25.5 | 25.7 |
| EBIT %¹ | 26.0 | 25.8 | 26.9 | 26.6 | 24.8 | 25.0 |
| Total growth % | 15.8 | -17.8 | 7.1 | -12.5 | -12.0 | |
| Organic % | 24.4 | -18.2 | 15.3 | -14.1 | -10.1 | |
| Exchange effects % | -6.9 | 0.4 | -7.2 | 1.9 | -2.1 | |
| Acquisitions % | - | - | - | - | - | |
| Average number of employees | 614 | 562 | 599 | 576 | 566 | |
| ¹ Excl. IFRS 16. |
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| EMEA | 174 | 123 | 339 | 302 | 564 | 601 |
| Americas | 93 | 79 | 180 | 179 | 331 | 332 |
| Asia Pacific | 109 | 122 | 210 | 200 | 379 | 390 |
| 376 | 324 | 729 | 681 | 1,275 | 1,323 | |
| Pro forma adjustment¹ | - | |||||
| Trailing 12 month pro forma | 1,323 |
¹ Pro forma for completed acquisitions.
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.
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Net sales | 1,566 | 1,472 | 2,927 | 2,866 | 5,614 | 5,675 |
| EBITDA | 264 | 239 | 456 | 418 | 867 | 905 |
| EBITDA¹ | 250 | 223 | 428 | 387 | 806 | 847 |
| EBITA¹ | 230 | 205 | 390 | 352 | 736 | 774 |
| EBIT¹ | 227 | 201 | 383 | 344 | 721 | 760 |
| EBITA %¹ | 14.7 | 13.9 | 13.3 | 12.3 | 13.1 | 13.6 |
| EBIT %¹ | 14.5 | 13.7 | 13.1 | 12.0 | 12.8 | 13.4 |
| Total growth % | 6.4 | -10.2 | 2.1 | -4.7 | -6.2 | |
| Organic % | 7.5 | -11.9 | 3.2 | -7.2 | -7.0 | |
| Exchange effects % | -2.7 | -1.4 | -3.4 | -0.1 | -2.1 | |
| Acquisitions % | 1.7 | 3.4 | 2.5 | 2.7 | 3.0 | |
| Average number of employees | 2,509 | 2,634 | 2,637 | 2,614 | 2,625 |
Highlights
¹ Excl. IFRS 16.
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Sweden | 351 | 328 | 658 | 634 | 1,178 | 1,201 |
| Rest of Nordic region | 284 | 292 | 553 | 566 | 1,085 | 1,072 |
| Rest of world | 931 | 852 | 1,716 | 1,666 | 3,351 | 3,402 |
| 1,566 | 1,472 | 2,927 | 2,866 | 5,614 | 5,675 | |
| Pro forma adjustment¹ | 36 | |||||
| Trailing 12 month pro forma | 5,711 |
¹ Pro forma for completed acquisitions.
| 2021 | 2020 | 2021 | 2020 | 2020 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q2 | Q2 | 6 mths | 6 mths | Full Year | 12 mths |
| Air Handling Unit | 449 | 399 | 833 | 811 | 1,548 | 1,570 |
| Cooling Heating | 341 | 342 | 596 | 608 | 1,194 | 1,182 |
| Room Unit | 332 | 344 | 618 | 658 | 1,269 | 1,229 |
| Services | 110 | 96 | 217 | 192 | 410 | 435 |
| Residential | 145 | 141 | 300 | 276 | 544 | 568 |
| North America | 84 | 82 | 158 | 158 | 322 | 322 |
| UK | 193 | 153 | 371 | 328 | 664 | 707 |
| Eliminations | -88 | -85 | -167 | -165 | -337 | -339 |
| 1,566 | 1,472 | 2,927 | 2,866 | 5,614 | 5,675 |
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 188 per share from SEK 153 at the start of the year. The net asset value thus increased by 25.4 per cent, which can be compared against the SIXRX which increased by 22.4 per cent.
For some time, Latour's guideline 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 281 at 30 June 2021, to be compared with the indicated net asset value of SEK 188. As stated above, Latour does not claim that the valuation of the wholly-owned industrial operation is anything other than a cautious indication. A net asset value can be calculated from different starting points. For example, the entire industrial operations could be compared with other established listed industrial groups with mixed industrial holdings and a distinct growth agenda, where the EV/EBIT multiple for these companies is significantly higher.
| SEK m | Net sales¹ | EBIT¹ | EBIT multiple | Valuation² Range |
Valuation² Average |
Valuation² SEK/share³ Range |
|||
|---|---|---|---|---|---|---|---|---|---|
| Caljan | 1,304 | 231 | 19 – 23 | 4,389 – 5,313 |
4,851 | 7 | – | 8 | |
| Hultafors Group | 5,350 | 845 | 13 – 17 | 10,985 – 14,365 | 12,675 | 17 | – | 23 | |
| Latour Industries | 3,703 | 455 | 16 – 20 | 7,281 – 9,101 |
8,191 | 11 | – | 14 | |
| Nord-Lock Group | 1,323 | 331 | 15 – 19 | 4,965 – 6,289 |
5,627 | 8 | – | 10 | |
| Swegon | 5,711 | 763 | 16 – 20 | 12,208 – 15,260 | 13,734 | 19 | – | 24 | |
| 17,391 | 2,625 | 39,828 – 50,328 | 62 | – | 79 | ||||
| Industrial operations valuation, average | 45,078 | 71 | |||||||
| Listed shares (see table on page 10 for breakdown) | 82,155 | 129 | |||||||
| Latour Future Solutions | 46 | 0 | |||||||
| Unlisted part-owned holdings Neuffer⁴, 66.1 % Oxeon⁴, 31.3 % |
149 18 |
0 0 |
|||||||
| Other assets Short trading portfolio Dilution effect of option programme |
2 -195 |
0 0 |
|||||||
| Consolidated net debt (excl IFRS 16) | -6,748 | -11 | |||||||
| Estimated value | 120,505 | 188 | |||||||
| (115 255 – 125 756) | (180 – | 197) |
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 30 of June 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.
During the first half of the year, the value of the investment portfolio increased by 22.2 per cent, adjusted for changes in the portfolio, while the benchmark index (SIXRX) increased by 22.4 per cent.
| 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 | 140 | 2,236 | 29.7 | 29.6 |
| Assa Abloy ³ | 105,495,729 | 1,697 | 258 | 27,197 | 29.5 | 9.5 |
| Fagerhult | 84,708,480 | 1,899 | 69 | 5,811 | 48.1 | 47.8 |
| HMS Networks | 12,109,288 | 250 | 362 | 4,383 | 26.0 | 25.9 |
| Nederman | 10,538,487 | 306 | 170 | 1,786 | 30.0 | 30.0 |
| Securitas ³ | 39,732,600 | 1,081 | 135 | 5,368 | 29.6 | 10.9 |
| Sweco ³ ⁴ | 97,867,440 | 479 | 156 | 15,238 | 21.0 | 26.9 |
| Tomra ⁵ | 31,200,000 | 1,600 | 487 NOK | 15,088 | 21.1 | 21.1 |
| Troax | 18,060,000 | 397 | 280 | 5,048 | 30.2 | 30.1 |
| Total | 9,843 | 82,155 |
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 486,50 which has been translated to SEK at the exchange rate on the balance sheet date.
Movements in investment portfolio values (SEK billion). These figures include acquired and divested shares but not dividends.
The Group's profit after financial items was SEK 2,659 m (2,925 m). Profit after tax was SEK 2,390 m (2,746 m), which is equivalent to SEK 3.74 (4.29) per share. A revaluation of the holding in Alimak has had a positive impact on the income statement in the amount of SEK 189 m.
The Group's cash in hand and liquid investments reached SEK 1,765 m (4,673 m). Interest-bearing debt, excluding pension liabilities and lease liabilities, totalled SEK 8,450 m (10,862 m). The Group's net debt was SEK 7,532 m (6,843 m). Net debt, excluding lease liabilities, was SEK 6,748 m (6,267 m). The equity ratio was 87 (82) 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. As of 30 June 2021, the MTN programme had an outstanding balance of SEK 7,416 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 282 m (282 m) was invested in property, plant and equipment, of which SEK 263 m (128 m) was machinery and equipment, SEK 0 m (12 m) was vehicles, and SEK 19 m (142 m) was buildings. Fixed assets in newly acquired companies account for SEK 114 m (129 m) of investments for the year.
The parent company's profit/loss after financial items was SEK 1,672 m (2,875 m). The parent company's equity ratio was 62 (63) per cent.
The number of class A shares issued is 47,635,048 and the number of class B shares is 592,204,952. Not including repurchased shares, the number of outstanding shares on 30 June 2021 amounted to 639,472,800. At the end of the period, Latour holds 367,200 repurchased class B shares.
The total number of issued call options is 1,594,900, which give the right to purchase the same number of shares.
On 5 July, Swegon signed an agreement to acquire a majority shareholding of the Finnish software company 720° (Seven Twenty degrees). And on 9 July, Aritco, within Latour Industries, signed an agreement to acquire the entire shareholding of the Swedish company Motala Hissar.
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 nine 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.
New accounting standard requirements that came into effect on 1 January 2021 have not had any impact on the Group's or parent company's accounting as of 30 June 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.
Gothenburg, 23 August 2021 Johan Hjertonsson President and CEO
The Board of Directors and the Chief Executive Officer declare that the statements for the six-month period give a true and fair view of the company's and the Group's operations, financial positions and performance, and describe the principal risks and uncertainties faced by the company and the Group's companies.
Gothenburg, 23 August 2021 Investment AB Latour
Mariana Burenstam Linder Board member
Olle Nordström Chairman
Anders Böös Board member
Carl Douglas Board member
Johan Hjertonsson Board member and Chief Executive Officer Eric Douglas Board member
Lena Olving Board member Ulrika Kolsrud Board member
Joakim Rosengren Board member
| 2021 | 2020 | 2021 | 2020 | 12 mths Jul-Jun | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q2 | Q2 | 6 mths | 6 mths | 2020/2021 | 2020 |
| Net sales | 4,823 | 3,605 | 8,810 | 7,283 | 16,555 | 15,028 |
| Cost of goods sold | -2,924 | -2,209 | -5,347 | -4,443 | -10,055 | -9,151 |
| Gross profit | 1,899 | 1,396 | 3,463 | 2,840 | 6,500 | 5,877 |
| Sales costs | -705 | -545 | -1,321 | -1,152 | -2,423 | -2,254 |
| Administrative costs | -333 | -305 | -638 | -615 | -1,212 | -1,189 |
| Research and development costs | -120 | -102 | -230 | -205 | -431 | -406 |
| Other operating income | 30 | 45 | 64 | 70 | 128 | 134 |
| Other operating expenses | -30 | -28 | -50 | -52 | -103 | -105 |
| Operating profit | 741 | 461 | 1,288 | 886 | 2,459 | 2,057 |
| Income from interests in associates | 621 | 2,475 | 1,343 | 2,134 | 3,186 | 3,977 |
| Income from portfolio management | 1 | - | 1 | -7 | - | -8 |
| Management costs | -6 | -6 | -13 | -13 | -28 | -28 |
| Profit before financial items | 1,357 | 2,930 | 2,619 | 3,000 | 5,617 | 5,998 |
| Finance income | -26 | -95 | 86 | 14 | 103 | 31 |
| Finance expense | -16 | -26 | -46 | -89 | -233 | -276 |
| Profit after financial items | 1,315 | 2,809 | 2,659 | 2,925 | 5,487 | 5,753 |
| Taxes | -136 | -67 | -269 | -179 | -519 | -429 |
| Profit for the period | 1,179 | 2,742 | 2,390 | 2,746 | 4,968 | 5,324 |
| Attributable to: | ||||||
| Parent company shareholders | 1,178 | 2,741 | 2,389 | 2,745 | 4,964 | 5,320 |
| Non-controlling interests | 1 | 1 | 1 | 1 | 4 | 4 |
| Earnings per share regarding profit attributable to parent company shareholders |
||||||
| Basic share, SEK | 1.84 | 4.29 | 3.74 | 4.29 | 7.76 | 8.32 |
| Diluted share, SEK | 1.84 | 4.27 | 3.72 | 4.28 | 7.74 | 8.29 |
| Average number of basic shares outstanding | 639,409,233 | 639,313,412 | 639,394,449 | 639,297,956 | 639,389,913 | 639,338,951 |
| Average number of diluted shares outstanding | 641,391,122 | 641,432,945 | 641,446,454 | 641,522,973 | 641,396,226 | 641,434,414 |
| Number of outstanding shares | 639,472,800 | 639,379,500 | 639,472,800 | 639,379,500 | 639,472,800 | 639,379,500 |
| 2021 | 2020 | 2021 | 2020 | 12 mths Jul-Jun | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q2 | Q2 | 6 mths | 6 mths | 2020/2021 | 2020 |
| Profit for the period | 1,179 | 2,742 | 2,390 | 2,746 | 4,968 | 5,324 |
| Other comprehensive income: | ||||||
| Items that will not be recycled to the income statement | ||||||
| Restatement of net pension obligations | - | - | - | - | 3 | 3 |
| 0 | 0 | 0 | 0 | 3 | 3 | |
| Items that may subsequently be recycled to the income statement | ||||||
| Change in translation reserve for the period | -137 | -580 | 165 | -32 | -374 | -571 |
| Change in fair value reserve for the period | - | - | - | - | - | - |
| Change in hedging reserve for the period | 34 | 161 | -45 | -10 | 90 | 125 |
| Change in associated companies' equity | 678 | 586 | -79 | 6 | -1,079 | -994 |
| 575 | 167 | 41 | -36 | -1,363 | -1,440 | |
| Other comprehensive income, net after tax | 575 | 167 | 41 | -36 | -1,360 | -1,437 |
| Comprehensive income for the period | 1,754 | 2,909 | 2,431 | 2,710 | 3,608 | 3,887 |
| Attributable to: | ||||||
| Parent company shareholders | 1,754 | 2,908 | 2,431 | 2,709 | 3,608 | 3,886 |
| Non-controlling interests | - | 1 | - | 1 | - | 1 |
| 2021 | 2020 | 2021 | 2020 | 12 mths Jul-Jun | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q2 | Q2 | 6 mths | 6 mths | 2020/2021 | 2020 |
| Operating cash flows before movements in working capital | 779 | 529 | 1,314 | 904 | 2,530 | 2,120 |
| Movements in working capital | -255 | 190 | -553 | -92 | -246 | 215 |
| Operating cash flows | 524 | 719 | 761 | 812 | 2,284 | 2,335 |
| Acquisitions of subsidaries | -105 | -41 | -1,077 | -797 | -972 | -692 |
| Other investments | -87 | -94 | -170 | -182 | -518 | -530 |
| Portfolio management | 837 | 2,798 | 807 | 2,734 | 1,297 | 3,224 |
| Cash flow after investments | 1,169 | 3,382 | 321 | 2,567 | 2,091 | 4,337 |
| Financial payments | -1,044 | -1,329 | -2,622 | 1,092 | -4,949 | -1,235 |
| Cash flow for the period | 125 | 2,053 | -2,301 | 3,659 | -2,858 | 3,102 |
| SEK m | 2021/06/30 | 2020/06/30 | 2020/12/31 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 11,081 | 10,704 | 10,063 |
| Other intangible assets | 329 | 260 | 241 |
| Property, plant and equipment | 2,365 | 1,903 | 2,072 |
| Financial assets | 20,923 | 19,879 | 20,440 |
| Inventories etc. | 2,899 | 2,378 | 2,127 |
| Current receivables | 4,366 | 3,439 | 3,110 |
| Cash and bank | 1,765 | 4,673 | 4,033 |
| Total assets | 43,728 | 43,236 | 42,086 |
| EQUITY AND LIABILITIES | |||
| Capital and reserves attributable to parent company shareholders | 29,506 | 27,886 | 29,067 |
| Non-controlling interests | 83 | 80 | 81 |
| Total equity | 29,589 | 27,966 | 29,148 |
| Inerest-bearing long-term liabilities | 8,932 | 9,100 | 7,509 |
| Non-interest-bearing long-term liabilities | 635 | 526 | 587 |
| Interest-bearing current liabilities | 536 | 2,435 | 2,016 |
| Non-interest-bearing current liabilities | 4,036 | 3,209 | 2,826 |
| Equity and liabilities | 43,728 | 43,236 | 42,086 |
| Share | Repurchased | Other | 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 | -43 | 2,752 | 0 | 2,709 | ||
| Exercise of call options | 79 | -18 | 61 | |||
| Own shares repurchase | -95 | -95 | ||||
| Dividends | -799 | -799 | ||||
| Closing balance 30 June 2020 | 133 | -83 | 399 | 27,437 | 80 | 27,966 |
| Opening balance 1 July 2020 | 133 | -83 | 399 | 27,437 | 80 | 27,966 |
| Total comprehensive income for the period | -400 | 1,577 | 1 | 1,178 | ||
| Issued call options | 11 | 11 | ||||
| Exercise of call options | -7 | -7 | ||||
| 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 | 119 | 2,310 | 2 | 2,431 | ||
| Issued call options | 1 | 1 | ||||
| Exercise of call options | 102 | -42 | 60 | |||
| Own shares repurchase | -133 | -133 | ||||
| Dividends | -1,918 | -1,918 | ||||
| Closing balance 30 June 2021 | 133 | -83 | 88 | 29,368 | 83 | 29,589 |
| 2021/06/30 | 2020/06/30 | 2020/12/31 | |
|---|---|---|---|
| Return on equity (%) | 16 | 20 | 19 |
| Return on total capital (%) | 13 | 15 | 15 |
| Equity ratio, incl IFRS 16 (%) | 68 | 65 | 69 |
| Equity ratio, excl IFRS 16 (%) | 69 | 66 | 70 |
| Adjusted equity ratio, incl IFRS 16 ¹ (%) | 87 | 82 | 86 |
| Adjusted equity ratio, excl IFRS 16 ¹ (%) | 87 | 82 | 86 |
| Adjusted equity ¹ (SEK m) | 91,363 | 67,933 | 77,245 |
| Surplus value in associated companies² (SEK m) | 61,754 | 39,967 | 48,097 |
| Net debt/equity ratio 1 (%) ³ | 8.4 | 10.1 | 7.1 |
| Net debt/equity ratio 2 (%) ⁴ | 6.0 | 7.8 | 5.3 |
| Listed share price (SEK) | 281 | 169 | 200 |
| Repurchased shares | 367,200 | 460,500 | 460,500 |
| Average number of repurchased shares | 445,551 | 542,044 | 501,049 |
| Average number of employees | 7,278 | 6,253 | 6,251 |
| Issued call options corresponds to number of shares | 1,594,900 | 1,668,500 | 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.
⁴ The ratio of net debt to the market vaule of total assets.
| 2021 | 2020 | 2021 | 2020 | 12 mths Jul-Jun | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q2 | Q2 | 6 mths | 6 mths | 2020/2021 | 2020 |
| Income from interests i Group companies | 970 | 440 | 970 | 440 | 1,029 | 499 |
| Income from interest in associates companies | 709 | 2,440 | 709 | 2,440 | 1,111 | 2,842 |
| Income from portfolio management | - | - | - | - | - | - |
| Management costs | -5 | -5 | -10 | -10 | -22 | -22 |
| Profit before financial items | 1,674 | 2,875 | 1,669 | 2,870 | 2,118 | 3,319 |
| Interest income and similar items | 10 | 20 | 19 | 36 | 27 | 44 |
| Interest expense and similar items | -8 | 69 | -16 | -31 | -20 | -35 |
| Profit after financial items | 1,676 | 2,964 | 1,672 | 2,875 | 2,125 | 3,328 |
| Taxes | - | - | - | - | - | - |
| Profit for the period | 1,676 | 2,964 | 1,672 | 2,875 | 2,125 | 3,328 |
| SEK m | 2021 Q2 |
2020 Q2 |
2021 6 mths |
2020 6 mths |
12 mths Jul-Jun 2020/2021 |
Full Year 2020 |
|---|---|---|---|---|---|---|
| Profit for the period | 1,676 | 2,964 | 1,672 | 2,875 | 2,125 | 3,328 |
| Change in fair value reserve for the period | - | - | - | - | - | - |
| Total other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
| Comprehensive income for the period | 1,676 | 2,964 | 1,672 | 2,875 | 2,125 | 3,328 |
| SEK m | 2021/06/30 | 2020/06/30 | 2020/12/31 |
|---|---|---|---|
| ASSETS | |||
| Financial assets | 12,386 | 10,840 | 12,385 |
| Long-term receivables from Group companies | 6,666 | 6,250 | 5,650 |
| Current receivables from Group companies | 396 | 1,781 | 16 |
| Other current liabilities | 23 | 24 | 12 |
| Cash and bank | - | 12 | 706 |
| Total assets | 19,471 | 18,907 | 18,769 |
| EQUITY AND LIABILITIES | |||
| Equity | 12,030 | 11,891 | 12,348 |
| Interese-bearing long-term lilabilities | 7,416 | 7,000 | 6,400 |
| Non-interest-bearing long-term liabilities | - | - | - |
| Interese-bearing current liabilities | - | - | - |
| Non-interest-bearing current liabilities | 25 | 16 | 21 |
| Equity and liabilities | 19,471 | 18,907 | 18,769 |
| SEK m | 2021/06/30 | 2020/06/30 | 2020/12/31 |
|---|---|---|---|
| Amount at beginning of year | 12,348 | 9,849 | 9,849 |
| Total comprehensive income for the period | 1,672 | 2,875 | 3,328 |
| Issued call options | 1 | - | 11 |
| Exercise of call options | -42 | -18 | 54 |
| Repurchased treasury shares | -31 | -16 | -95 |
| Dividends | -1,918 | -799 | -799 |
| Amount at end of year | 12,030 | 11,891 | 12,348 |
| Industrial operations | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hultafors | Latour | Nord-Lock | Portfolio | |||||
| SEK m | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | ||||||||
| External sales | 570 | 2,586 | 1,860 | 729 | 2,927 | 138 | 8,810 | |
| Internal sales | 1 | 1 | ||||||
| RESULT | ||||||||
| Operating profit | 80 | 449 | 214 | 196 | 383 | -34 | 1,288 | |
| Income from portfolio management | 1,331 | 1,331 | ||||||
| Finance income | 86 | |||||||
| Finance expense | -46 | |||||||
| Taxes | -269 | |||||||
| Profit for the period | 2,390 | |||||||
| OTHER DISCLOSURES | ||||||||
| Investments in: | ||||||||
| property, plant and equipment | 9 | 169 | 37 | 10 | 57 | - | - | 282 |
| intangible assets | 2 | 398 | 584 | - | 2 | - | - | 986 |
| Depreciation/amortisation | 10 | 32 | 31 | 22 | 45 | 98 | - | 238 |
| Industrial operations | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hultafors | Latour | Nord-Lock | Portfolio | |||||
| SEK m | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | ||||||||
| External sales | 441 | 1,684 | 1,500 | 681 | 2,866 | 111 | 7,283 | |
| Internal sales | 1 | 1 | ||||||
| RESULTS | ||||||||
| Operating result | 56 | 222 | 119 | 181 | 344 | -36 | 886 | |
| Income from portfolio management | 2,114 | 2,114 | ||||||
| Finance income | 14 | |||||||
| Finance expense | -89 | |||||||
| Taxes | -179 | |||||||
| Profit for the period | 2,746 | |||||||
| OTHER DISCLOSURES | ||||||||
| Investments in: | ||||||||
| property, plant and equipment | 98 | 108 | 33 | 4 | 27 | 12 | - | 282 |
| intangible assets | - | 304 | 502 | 1 | 67 | - | - | 874 |
| Depreciation/amortisation | 7 | 19 | 30 | 17 | 43 | 94 | - | 210 |
| SEK m | 2020/12/31 | Change in cash | Change in loans | Other changes | 2021/06/30 |
|---|---|---|---|---|---|
| Interest-bearing receivables | 22 | -1 | 21 | ||
| Swap | 200 | -50 | 150 | ||
| Cash | 4,033 | -2,403 | 135 | 1,765 | |
| Pensions provisions | -91 | -143 | -234 | ||
| Long-term liabilities | -7,420 | -828 | -450 | -8,698 | |
| Utilised bank overdraft facilities | -85 | 22 | -63 | ||
| Interest-bearing current liabilities | -1,932 | 1,521 | -62 | -473 | |
| Interest-bearing net debt | -5,273 | -2,403 | 715 | -571 | -7,532 |
| SEK m | Jul-Jun 2020/2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| Net sales, SEK m | 16,555 | 15,028 | 13,738 | 11,785 | 9,930 |
| Operating profit, SEK m | 2,459 | 2,057 | 1,819 | 1,397 | 1,125 |
| Income from interest in associated companies, SEK m | 3,166 | 3,977 | 3,955 | 1,278 | 2,006 |
| Income from portfolio management, SEK m | -28 | -36 | 194 | 2 | -8 |
| Profit after finance items, SEK m | 5,487 | 5,753 | 5,725 | 2,646 | 3,069 |
| Earnings per share, SEK | 7.76 | 8.32 | 8.33 | 3.66 | 4.37 |
| Return on equity, % | 17.3 | 19.0 | 22.0 | 11.0 | 14.2 |
| Return on total capital, % | 13.1 | 15.0 | 17.0 | 9.0 | 12.6 |
| Adjusted equity ratio, % | 87 | 86 | 86 | 86 | 88 |
| Net debt/equity ratio, % | 8.4 | 7.1 | 11.3 | 9.2 | 7.9 |
Specification of acquisitions
| Contributed | ||||||||
|---|---|---|---|---|---|---|---|---|
| Transfer date | Country | Business area | Share | Revenues | EBIT mber of employees | |||
| 11 January 2021 | Vega Srl | Italy | Latour Industries | 100% | 57 | 13 | 203 | |
| 8 January 2021 | VM Kompensator A/S | Denmark | Latour Industries | 100% | 4 | 1 | 17 | |
| 20 January 2021 | Elsys AB | Sweden | Latour Industries | 70% | 12 | 5 | 6 | |
| 28 February 2021 | Fristads AB, Kansas AS | Sweden | Hultafors Group | 100% | 455 | 35 | 640 | |
| Kansas GmbH, Leijona Group OY | ||||||||
| 1 June 2021 | HK Instruments Oy | Finland | Latour Industries | 100% | 9 | 2 | 47 | |
Assets and liabilities in acquisitions
| Consolidated carrying amount | |
|---|---|
| Intangible assets | 126 |
| Property, plant and equipment | 126 |
| Inventories | 398 |
| Account receivable | 275 |
| Other receivable | 24 |
| Cash | 83 |
| Long-term liabilities | -604 |
| Current liabilities | -319 |
| Net indentifiable assets and liabilities | 606 |
| Group goodwill | 827 |
| Total purchase price | 1,433 |
| Additional purchase price | -245 |
| Cash settlement purchase price | 1,188 |
| Acquisition of non-cash items | -28 |
| Acquired cash | -68 |
| Effect of Group cash | 1,092 |
Elsys AB will be fully consolidated into the Group when an agreement on the acquisition of outstanding shares is in place.
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 14 m. Estimated additional purchase prices amounting to SEK 27 m for the acquisition of VM Kompensator, SEK 116 m for the acquisition of Vega, SEK 90 m for the acquisition of Fristads and SEK 12 m for the acquisition of HK Instruments have been booked.
THE GROUP 30 JUNE 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 | 0¹ | 0 | ||
| Other long-term securities holdings | 54² | 54 | ||
| Other long-term receivables | 27³ | 26 | ||
| Listed shares, trading | 2¹ | 2 | ||
| Unrealised gains, currency derivatives | 153² | 153 | ||
| Other current receivables | 3 714³ | 3,714 | ||
| Cash | 1 765³ | 1,765 | ||
| Total | 207 | 2 | 5,505 | 5,714 |
| FINANCIAL LIABILITIES | ||||
| Long-term loans | 8 091³ | 8,091 | ||
| Bank overdraft facilities | 63³ | 63 | ||
| Current loans | 306³ | 306 | ||
| Other liabilities | 2 419³ | 2,419 | ||
| Unrealised gains, currency derivatives | 1² | 1 | ||
| Total | 1 | 0 | 10,879 | 10,880 |
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 30 JUNE 2021
| 2021 | 2020 | |
|---|---|---|
| SEK m | 6 mths | 6 mths |
| Renenue from goods | 8,323 | 6,895 |
| Renenue from services | 487 | 388 |
| 8,810 | 7,283 | |
| Fix-price contract | 7,213 | 5,590 |
| Time-and-materials contracts | 1,597 | 1,693 |
| 8,810 | 7,283 | |
| Sweden | 1,669 | 1,325 |
| Nordics, excl. Sweden | 1,328 | 1,311 |
| Europe, excl. Nordics | 4,082 | 3,330 |
| Other markets | 1,731 | 1,317 |
| 8,810 | 7,283 |
Latour's revenues are derived from a variety of operations that are conducted in more than a hundred subsidiaries.
| 2021 2020 |
2019 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 |
| INCOME STATEMENT | ||||||||||||
| Net sales | 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 | -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 | 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 | -1,158 | -1,017 | -3,820 | -1,006 | -860 | -935 | -1,019 | -3,618 | -1,064 | -855 | -831 | -868 |
| Operating profit | 741 | 547 | 2,057 | 575 | 596 | 461 | 425 | 1,819 | 364 | 443 | 599 | 413 |
| Total portfolio management | 616 | 715 | 3,941 | 991 | 836 | 2,469 | -355 | 3,965 | 1,029 | 350 | 1,209 | 1,377 |
| Profit before financial items | 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 | -42 | 82 | -245 | -120 | -40 | -121 | 46 | -59 | -67 | 31 | -24 | 1 |
| Profit after financial items | 1,315 | 1,344 | 5,753 | 1,446 | 1,382 | 2,809 | 116 | 5,725 | 1,326 | 824 | 1,784 | 1,791 |
| Taxes | -136 | -133 | -429 | -157 | 93 | -67 | -112 | -415 | -79 | -133 | -113 | -90 |
| Profit for the period | 1,179 | 1,211 | 5,324 | 1,289 | 1,289 | 2,742 | 4 | 5,310 | 1,247 | 691 | 1,671 | 1,701 |
| KEY RATIOS | ||||||||||||
| Earnings per share, SEK | 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 | 125 | -2426 | 3102 | 537 | 483 | 2053 | 1606 | 249 | 169 | 122 | -1171 | 1129 |
| Adjusted equity ratio, % | 87 | 88 | 86 | 86 | 85 | 82 | 80 | 86 | 86 | 87 | 88 | 87 |
| Adjusted equity | 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 | 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 | 166 | 153 | 153 | 148 | 127 | 114 | 136 | 136 | 127 | 127 | 119 |
| Listed share price, SEK | 281 | 226 | 200 | 200 | 211 | 169 | 142 | 153 | 153 | 130 | 137 | 125 |
| NET SALES | ||||||||||||
| Caljan | 859 | 209 | 1,176 | 424 | 311 | 219 | 222 | 113 | 113 | 0 | 0 | 0 |
| Hultafors Group | 1,353 | 1,113 | 3,641 | 1,041 | 915 | 839 | 846 | 2,896 | 866 | 693 | 689 | 648 |
| Latour Industries | 1,083 | 887 | 3,081 | 855 | 725 | 689 | 812 | 3,079 | 810 | 739 | 790 | 740 |
| Nord-Lock Group | 402 | 354 | 1,275 | 294 | 300 | 324 | 357 | 1,448 | 330 | 340 | 395 | 384 |
| Swegon | 1,796 | 1,361 | 5,614 | 1,376 | 1,372 | 1,472 | 1,394 | 5,986 | 1,473 | 1,505 | 1,639 | 1,370 |
| 5,675 | 3,924 | 14,783 | 3,989 | 3,622 | 3,542 | 3,631 | 13,519 | 3,591 | 3,276 | 3,512 | 3,142 | |
| Other companies and eliminations | 87 | 63 | 245 | 64 | 70 | 63 | 47 | 219 | 56 | 63 | 55 | 43 |
| 5,762 | 3,987 | 15,028 | 4,053 | 3,692 | 3,605 | 3,678 | 13,738 | 3,647 | 3,339 | 3,567 | 3,185 | |
| OPERATING PROFIT | ||||||||||||
| Caljan | 61 | 19 | 207 | 93 | 58 | 27 | 30 | 20 | 20 | 0 | 0 | 0 |
| Hultafors Group | 266 | 183 | 561 | 182 | 157 | 114 | 108 | 412 | 138 | 97 | 90 | 88 |
| Latour Industries | 102 | 112 | 312 | 105 | 87 | 48 | 71 | 257 | 60 | 74 | 67 | 56 |
| Nord-Lock Group | 97 | 99 | 316 | 52 | 83 | 84 | 97 | 411 | 71 | 94 | 124 | 121 |
| Swegon | 227 | 156 | 721 | 160 | 217 | 201 | 143 | 717 | 145 | 199 | 226 | 147 |
| 753 | 569 | 2,117 | 593 | 602 | 474 | 449 | 1,817 | 434 | 464 | 507 | 412 | |
| Gain/loss from sale/purchase of | -4 | -14 | -38 | -12 | 1 | -10 | -17 | 29 | -63 | -15 | 108 | -1 |
| Other companies and items | -8 | -9 | -22 | -6 | -4 | -7 | -8 | -27 | -7 | -6 | -17 | 2 |
| 741 | 546 | 2,057 | 575 | 599 | 457 | 424 | 1,819 | 364 | 443 | 598 | 413 | |
| OPERATING MARGIN (%) | ||||||||||||
| Caljan | 17.0 | 9.1 | 17.6 | 21.8 | 18.7 | 12.2 | 13.3 | 17.4 | 17.4 | 0.0 | 0.0 | 0.0 |
| Hultafors Group | 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 | 10.4 | 12.6 | 10.1 | 12.3 | 12.0 | 7.0 | 8.8 | 8.3 | 7.4 | 10.0 | 7.7 | 7.6 |
| Nord-Lock Group | 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 | 14.5 | 11.5 | 12.8 | 11.6 | 15.8 | 13.7 | 10.2 | 12.0 | 9.9 | 13.2 | 10.7 | 10.7 |
| 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-June 2021: 2,390/639,394,449 x 1000=3.74
Jan-June 2020: 2,746/639,297,956 x 1000=4.29
Calculations: Jan-June 2021: 2,390/641,446,454 x 1000=3.72 Jan-June 2020: 2,746/641,522,973 x 1000=4.28
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)8 505 583 75. 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 – September 2021 will be published on 9 November 2021 The 2021 Year-End Report will be published on 11 February 2022 The interim report for the period January – March 2022 will be published on 29 April 2022 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 8 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 23 August 2021 at 8.30 a.m. CEST.
Investment AB Latour (publ) Corporate ID no. 556026–3237 J A Wettergrens gata 7, Box 336, SE-401 25 Gothenburg, Sweden Tel +46 (0)31 89 17 90 [email protected], www.latour.se
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