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ASSA ABLOY
Earnings Release • Jul 19, 2021
2882_ir_2021-07-19_8b9fc5b0-b9ae-42af-91f5-01833254bc78.pdf
Earnings Release
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- Net sales increased by 19% to SEK 23,648 M (19,953), with strong organic growth of 23% (–18) and acquired net growth of 5% (3). Currency effects amounted to –9% (0)
- Very strong organic sales growth was reported by EMEIA, Americas, Entrance Systems and Global Technologies. The organic sales growth for Asia Pacific was stable
- Four acquisitions with combined annual sales of about SEK 400 M were signed
- Operating income (EBIT) increased by 71% and amounted to SEK 3,589 M (2,097), corresponding to an operating margin of 15.2% (10.5)
- Net income amounted to SEK 3,212 M (1,400)
- Earnings per share amounted to SEK 2.89 (1.26)
- Operating cash flow increased by 6% to SEK 3,627 M (3,418).
| Second quarter | First half-year | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | Δ | 2020 | 2021 | Δ | ||
| Sales, SEK M | 19,953 | 23,648 | 19% | 42,126 | 45,454 | 8% | |
| Of which: | |||||||
| Organic growth | –4,198 | 4,258 | 23% | –4,957 | 5,085 | 13% | |
| Acquisitions and divestments | 654 | 856 | 5% | 1,302 | 1,721 | 4% | |
| Exchange-rate effects | –48 | –1,418 | –9% | 733 | –3,478 | –9% | |
| Operating income (EBIT), SEK M | 2,097 | 3,589 | 71% | 4,848 | 6,776 | 40% | |
| Operating margin (EBITA), % | 11.2% | 15.8% | 12.2% | 15.6% | |||
| Operating margin (EBIT), % | 10.5% | 15.2% | 11.5% | 14.9% | |||
| Income before tax, SEK M | 1,892 | 3,441 | 82% | 4,411 | 6,486 | 47% | |
| Net income, SEK M | 1,400 | 3,212 | 129% | 3,264 | 5,465 | 67% | |
| Operating cash flow, SEK M | 3,418 | 3,627 | 6% | 4,624 | 6,262 | 35% | |
| Earnings per share, SEK | 1.26 | 2.89 | 130% | 2.94 | 4.92 | 68% |
Significant sales growth and margin recovery
During the last few months, we have seen positive signs that more markets are opening up again in parallel with the vaccine roll-out. This has resulted in increased mobility and activity level in most of our core markets. In combination with the sharp drop in activity level last year, this has led to a record organic sales growth of 23% in the second quarter. EMEIA, which was most affected by the lockdowns last year, reports an organic sales growth of 39% with all regions growing strongly. Americas was up 26% and Entrance Systems grew by 21% as all their markets and product areas grew strongly. Global Technologies also reports a strong organic sales growth of 17%, but volumes in the travel related segments remain lower than before the pandemic. In Asia Pacific, the recovery is slower due to continued restrictions and lockdowns in many markets and the organic sales growth was flat.
Operating income increased by 71% to SEK 3,589 M and the operating margin was 15.2%, up 4.7 percentage points on last year. Despite significantly higher raw material and logistical costs, we achieved an operating leverage of 40%. Operating cash flow was strong and totaled SEK 3,627 M.
Accelerating growth
Demand in many markets has gradually improved and sales, adjusted for currency, are now back to or above pre-Covid levels in EMEIA, Americas and Entrance Systems. We are therefore shifting our focus so as to accelerate our profitable growth – something we discussed in more detail at our Capital Markets Day in May. One important driver for growth is upgrading the installed base to incorporate electromechanical products and solutions and the pandemic is accelerating this transition. This also provides opportunities to accelerate our recurring revenue from licenses and software. The shift to more sustainable solutions is another important driver of growth. Product innovation will continue to be a key enabler for both of these initiatives.
Our acquisition strategy will also continue to boost our topline and we signed four acquisitions in the quarter. Two of these, Sure-Lock in the US and MR Group in Portugal, strengthen our position in the mature markets with products and solutions that complement our core mechanical business. We have also recently announced the divestment of our locksmith business CERTEGO in the Nordic market. This will streamline EMEIA's channels to the market in the Nordic region and the transaction will be accretive for our operating margin.
Since raw material costs have continued to increase during the second quarter we have continued to implement numerous price increases that largely offset the cost impact. During the quarter we have also worked hard to address the shortage of some components. Thanks to excellent operational execution, we were able to manage the different component shortages and logistical constraints in an efficient way, while maintaining our customer service at a high level.
As we look forward, we expect mobility to increase and demand in many markets and segments to normalize, apart from the travel-related verticals where restrictions are still delaying our recovery. I now look forward to working together with my colleagues on our long-term growth plans to accelerate our profitable growth.
Stockholm, 19 July 2021
Nico Delvaux President and CEO
Sales by quarter and last 12 months
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 0 1,000 2,000 3,000 4,000 5,000 6,000 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 SEK M Operating cash flow by quarter and last 12 months
The Group's sales increased by 19% to SEK 23,648 M (19,953). Organic growth amounted to 23% (–18). Growth from acquisitions and divestments was 5% (3), of which 6% (3) came from acquisitions and –1% (–) from divestments. Exchange-rates affected sales by –9% (0).
The Group's operating income (EBIT) amounted to SEK 3,589 M (2,097), an increase of 71%. The corresponding operating margin was 15.2% (10.5). Exchange-rates had an impact of SEK –213 M (3) on EBIT. Operating income before amortizations from acquisitions (EBITA) amounted to SEK 3,740 M (2,237). The corresponding EBITA margin was 15.8% (11.2).
Net financial items amounted to SEK –148 M (–205). The Group's income before tax was SEK 3,441 M (1,892), an increase of 82% compared to last year. Exchange-rates had an impact of SEK –200 M (–1) on income before tax. The profit margin was 14.6% (9.5).
The effective income tax rate for the quarter was 7% (26). The year-on year change was due to a positive non-recurring tax effect from an intra-Group transfer of a trademark. The estimated effective income tax rate, on an annual basis and excluding items affecting comparability, is stable at 26% (25% for full year 2020).
Earnings per share amounted to SEK 2.89 (1.26), an increase of 130% compared with last year. Operating cash flow totaled SEK 3,627 M (3,418), an increase of 6% compared with last year. The cash conversion was good and amounted to 1.05 (1.81). The net-debt/equity ratio at the end of the quarter was 0.45 (0.58).
The Group's sales for the first half of 2021 totaled SEK 45,454 M (42,126), representing an increase of 8%. Organic growth was 13% (–11). Growth from acquisitions and divestments was 4% (3), of which 6% (3) came from acquisitions and –1% (–) from divestments. Exchange-rates affected sales by –9% (2).
The Group's operating income (EBIT) amounted to SEK 6,776 M (4,848), an increase of 40% compared with last year. The corresponding operating margin was 14.9% (11.5). Operating income before amortizations from acquisitions (EBITA) amounted to SEK 7,082 M (5,122). The corresponding EBITA margin was 15.6% (12.2).
Earnings per share for the first half-year amounted to SEK 4.92 (2.94), an increase of 68% compared with last year. Operating cash flow totaled SEK 6,262 M (4,624), an increase of 35% compared with last year.
On July 5 it was announced that ASSA ABLOY has signed an agreement to sell its Nordic locksmith business CERTEGO to Nalka Invest, which invests in smalland medium-sized businesses primarily in the Nordic region. The sale of CERTEGO will allow the EMEIA division to reinforce its strategic focus on its core security solutions business.
CERTEGO is a market-leading locksmith and security solutions installation business in the Nordic area. It provides planning, installation and management of mechanical, electro-mechanical and electronic security solutions for customers in verticals of every kind. CERTEGO has a network of over 70 locations with some 1,200 employees in Sweden, Finland, Norway and Denmark. The impact of the divestment on ASSA ABLOY's external sales will be around SEK 1.5 bn.
The transaction will have a positive effect on ASSA ABLOY´s operating margin going forward. The divestment will result in a capital loss and exit costs amounting to approximately SEK 200 M.
The acquisition is subject to regulatory approval and customary closing conditions and is expected to close during the third quarter of 2021.
Massimo Grassi has been appointed Executive Vice President and Head of Entrance Systems division from October 1, 2021. Massimo, who has previous experience from various senior positions at Stanley Black & Decker and other multi-national companies, holds a Mechanical Engineering degree from the University of Florence in Italy. He succeeds Christopher Norbye, who has decided to leave ASSA ABLOY for a CEO position outside the Group.
Christophe Sut, Executive Vice President and Head of the Global Solutions business unit in Global Technologies division, has decided to leave ASSA ABLOY for a new position outside the Group. Recruitment of his successor has started.
Mogens Jensen, Executive Vice President and Head of the Residential business segment in Entrance Systems division, retired from his position at the end of June 2021.
Payments related to all restructuring programs amounted to SEK 129 M (173) in the quarter. The restructuring programs proceeded according to plan and led to a reduction in personnel of 57 Full-Time Equivalents during the quarter. At the end of the quarter provisions of SEK 971 M remained in the balance sheet for carrying out the programs.
Sales for the quarter in EMEIA totaled SEK 5,235 M (3,871), with organic growth of 39% (–25). Sales growth was strong in Scandinavia and very strong in the other market regions. Net sales growth from acquisitions, divestments and internal segment transfers was 0%. Operating income totaled SEK 782 M (220), which represents an operating margin of 14.9% (5.7). Return on capital employed, on an annualized basis, amounted to 16.1% (12.8). Operating cash flow before non-cash items and interest paid totaled SEK 801 M (585).
Sales for the quarter in Americas totaled SEK 4,981 M (4,396), with organic growth of 26% (–18). Sales growth was very strong in all business areas and market regions. Sales growth from acquisitions was 1%. Operating income totaled SEK 1,017 M (769), which represents an operating margin of 20.4% (17.5). Return on capital employed, on an annualized basis, amounted to 28.1% (23.4). Operating cash flow before non-cash items and interest paid totaled SEK 1,412 M (1,244).
Sales for the quarter in Asia Pacific totaled SEK 2,244 M (2,357), with organic growth of 0% (–17). Sales growth was good in Pacific and stable in South Korea, but sales declined in South East Asia and China. Sales growth from internal segment transfers was –1%. Operating income totaled SEK 202 M (167), which represents an operating margin of 9.0% (7.1). Return on capital employed, on an annualized basis, amounted to 7.8% (5.5). Operating cash flow before noncash items and interest paid totaled SEK 151 M (307).
Sales for the quarter in Global Technologies totaled SEK 3,641 M (3,253), with organic growth of 17% (–25). Sales growth was very strong in Secure Issuance, Physical Access Control and IDT and stable in Extended Access, but declined in IAM Solutions and Citizen ID. Sales growth in Global Solutions was very strong. Net sales growth from acquisitions and internal segment transfers was 4%. Operating income totaled SEK 573 M (328), which represents an operating margin of 15.7% (10.1). Return on capital employed, on an annualized basis, amounted to 9.9% (10.9). Operating cash flow before non-cash items and interest paid totaled SEK 804 M (564).
Sales for the quarter in Entrance Systems totaled SEK 8,007 M (6,552), with organic growth of 21% (–8). Sales growth was very strong in all business segments. Net sales growth from acquisitions and divestments was 12%. Operating income totaled SEK 1,196 M (745), which represents an operating margin of 14.9% (11.4). Return on capital employed, on an annualized basis, amounted to 15.5% (13.8). Operating cash flow before non-cash items and interest paid totaled SEK 923 M (1,159).
Three acquisitions were consolidated during the quarter. The combined acquisition price for the businesses acquired during the year, including adjustments from prior-year acquisitions, amounted to SEK 475 M. The acquisition price on a cash and debt free basis totaled SEK 491 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amount to SEK 301 M. Estimated deferred considerations for acquisitions made during the year amounted to SEK 74 M.
On May 21 it was announced that ASSA ABLOY has acquired Sure-Loc, a leading supplier of residential locks and associated hardware in the US. The business has some 45 employees with its head office located in Salt Lake City, USA. Sales for 2020 amounted to around SEK 120 M.
On June 2 it was announced that ASSA ABLOY has signed an agreement to acquire MR Group´s hardware division, a leading hardware supplier in Portugal. The business has about 380 employees with its head office located in Águeda, Portugal. Sales for 2020 amounted to about SEK 230 M. The acquisition is subject to regulatory approval and customary closing conditions and is expected to close during the third quarter of 2021.
ASSA ABLOY continuously strives to reduce its carbon emissions. By sourcing energy from clean, renewable resources such as hydropower, wind power, and photovoltaic solar energy, the Group can lower the environmental impact compared to fossil fuels such as oil, coal, and natural gas.
During the last year, 11 key sites in the EMEIA division were able to increase substantially the amount of energy procured from renewable resources. This means that in Q1 2021, 85% of the electricity purchased came from renewable resources, compared to 47% in Q1 2020. Over the same period, the ASSA ABLOY Group increased the percentage of renewable electricity from 28% to 40%.
In tandem, we continue to focus on increasing the energy efficiency of all our sites, through our Green Teams and by applying the Lean Kaizen methodology to reduce energy waste.
Other operating income for the Parent company ASSA ABLOY AB totaled SEK 2,492 M (2,399) for the first half-year of 2021. Operating income for the same period amounted to SEK 497 M (494). Investments in tangible and intangible assets totaled SEK 4,201 M (10). Liquidity is good and the equity ratio is 42.0% (39.6).
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the latest Annual Report have been applied. No new or amended standards with material impact on the Group´s financial reports have been applied for the first time in 2021.
This Report was prepared in accordance with IAS 34 'Interim Financial Reporting' and the Annual Accounts Act. The Report for the Parent company was prepared in accordance with the Annual Accounts Act and RFR 2 'Reporting by a Legal Entity'.
ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules that the company uses – so-called 'alternative performance measures'. For definitions of financial performance measures, refer to Page 20 of this Report and to the company's latest Annual Report.
As from 2021 ASSA ABLOY has changed its definition of the financial performance measure "Return on capital employed". The measure is now calculated as a rolling Operating income (EBIT), excluding Items Affecting Comparability, for the last twelve months as a percentage of average capital employed excluding restructuring provisions for the same period.
The calculation of the performance measure "Return on equity" has also been adjusted from 2021. The new definition takes a rolling Net income attributable to the parent company´s shareholders for the last twelve months as a percentage of average parent company´s shareholders equity for the same period.
All comparative numbers for both performance measures have been recalculated in the interim report.
To check how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2020 appear on the company's website www.assaabloy.com.
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise.
No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties.
ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY's operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group's financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest rate risk, credit risk, and risks associated with the Group's pension obligations.
Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general. The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group.
The Covid-19 pandemic has had a substantial business impact on ASSA ABLOY. The continued impact of the pandemic on the business is difficult to predict due to the uncertainty of market conditions, but the health and safety of our employees remains our first priority.
For a more detailed description of particular risks and risk management, please see the 2020 Annual Report.
The guidance below relating to two key figures is provided to facilitate financial modeling but should not be viewed as forecasting market outlooks or ASSA ABLOY's business performance.
Acquisitions and divestments
It is estimated that completed acquisitions and divestments, on a rolling 12 month basis at 30 June 2021, will have an effect of 3% on sales in the third quarter of 2021 versus the same period last year, while the effect on the operating margin is estimated to be strongly dilutive in the third quarter of 2021.
Exchange-rate effects
On the basis of the currency rates on 30 June 2021, it is estimated that the weighted currency effects on sales in the third quarter of 2021 versus the same period last year will be –3%, while the effect on the operating margin is estimated to be dilutive in the third quarter of 2021.
The Board of Directors and the President and CEO declare that this half-year report gives an accurate picture of the Parent Company's and the Group's operations, position and income and describes significant risks and uncertainty factors faced by the Parent Company and the companies making up the Group.
Stockholm, 19 July 2021
| Lars Renström | Carl Douglas | Nico Delvaux |
|---|---|---|
| Chairman | Vice Chairman | President and CEO |
| Johan Hjertonsson | Eva Karlsson | Lena Olving |
|---|---|---|
| Board member | Board member | Board member |
| Susanne Pahlén Åklundh | Sofia Schörling Högberg | Joakim Weidemanis |
|---|---|---|
| Board member | Board member | Board member |
| Rune Hjälm | Mats Persson |
|---|---|
| Employee representative | Employee representative |
We have reviewed the condensed interim report for ASSA ABLOY AB as at June 30, 2021 and for the six months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm, 19 July 2021 Ernst & Young AB
Hamish Mabon Authorized Public Accountant
The Quarterly Report for the third quarter of 2021 will be published on 27 October 2021.
The Year-end Report and Quarterly Report for the fourth quarter will be published on 4 February 2022.
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72
ASSA ABLOY is holding a telephone and web conference at 09.30 on 19 July 2021
which can be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on: +46 8 566 427 05, +44 333 300 9269 or +1 646 722 4903
This is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on 19 July 2021.
© ASSA ABLOY – Quarterly Report Q2 2021 11 (20) 11 (20) 11 (20)
| CONDENSED INCOME STATEMENT | Q2 | Jan-Jun | |||
|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Sales | 19,953 | 23,648 | 42,126 | 45,454 | |
| Cost of goods sold | -12,305 | -14,210 | -25,505 | -27,294 | |
| Gross income | 7,648 | 9,438 | 16,621 | 18,159 | |
| Selling, administrative and R&D costs | -5,593 | -5,851 | -11,859 | -11,388 | |
| Share of earnings in associates | 42 | 3 | 86 | 5 | |
| Operating income | 2,097 | 3,589 | 4,848 | 6,776 | |
| Finance net | -205 | -148 | -437 | -290 | |
| Income before tax | 1,892 | 3,441 | 4,411 | 6,486 | |
| Tax on income | -492 | -229 | -1,147 | -1,021 | |
| Net income for the period | 1,400 | 3,212 | 3,264 | 5,465 | |
| Net income for the period attributable to: | |||||
| Parent company's shareholders | 1,399 | 3,212 | 3,263 | 5,465 | |
| Non-controlling interests | 1 | 0 | 2 | 0 | |
| Earnings per share | |||||
| Before and after dilution, SEK | 1.26 | 2.89 | 2.94 | 4.92 | |
| Before and after dilution and excluding items affecting comparability, SEK | 1.26 | 2.89 | 2.94 | 4.92 | |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOME | Q2 | Jan-Jun | |||
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Net income for the period | 1,400 | 3,212 | 3,264 | 5,465 | |
| Other comprehensive income: Items that will not be reclassified to profit or loss |
|||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | -301 | 33 | -403 | 491 | |
| Total | -301 | 33 | -403 | 491 | |
| Items that may be reclassified subsequently to profit or loss | |||||
| Share of other comprehensive income of associates | -101 | -9 | 18 | -20 | |
| Cashflow hedges and net investment hedges, net after tax | 23 | 3 | -2 | -10 | |
| Exchange rate differences | -2,877 | -782 | -821 | 1,351 | |
| Total | -2,955 | -788 | -805 | 1,321 | |
| Total comprehensive income for the period | -1,857 | 2,456 | 2,055 | 7,277 | |
| Total comprehensive income for the period attributable to: | |||||
| Parent company's shareholders | -1,857 | 2,457 | 2,054 | 7,277 | |
| Non-controlling interests | 0 | 0 | 2 | 0 |
| CONDENSED BALANCE SHEET | 31 Dec | 30 Jun | |||
|---|---|---|---|---|---|
| SEK M | 2020 | 2020 | 2021 | ||
| ASSETS | |||||
| Non-current assets | |||||
| Intangible assets | 72,452 | 70,745 | 74,201 | ||
| Property, plant and equipment | 8,026 | 8,562 | 8,186 | ||
| Right-of-use assets | 3,513 | 3,592 | 3,466 | ||
| Investments in associates | 637 | 2,665 | 626 | ||
| Other financial assets | 212 | 109 | 259 | ||
| Deferred tax assets | 1,338 | 1,381 | 1,494 | ||
| Total non-current assets | 86,178 | 87,054 | 88,232 | ||
| Current assets | |||||
| Inventories | 10,079 | 11,520 | 11,381 | ||
| Trade receivables | 13,665 | 13,718 | 15,091 | ||
| Other current receivables and investments | 4,750 | 5,293 | 4,594 | ||
| Cash and cash equivalents | 2,756 | 3,726 | 3,544 | ||
| Total current assets | 31,250 | 34,257 | 34,611 | ||
| TOTAL ASSETS | 117,428 | 121,311 122,843 | |||
| EQUITY AND LIABILITIES | |||||
| Equity | |||||
| Equity attributable to Parent company's shareholders | 58,870 | 58,980 | 63,953 | ||
| Non-controlling interests | 9 | 12 | 9 | ||
| Total equity | 58,879 | 58,992 | 63,962 | ||
| Non-current liabilities | |||||
| Long-term loans | 22,381 | 24,384 | 20,900 | ||
| Non-current lease liabilities | 2,477 | 2,513 | 2,197 | ||
| Deferred tax liabilities | 2,868 | 2,434 | 2,430 | ||
| Other non-current liabilities and provisions | 4,958 | 5,300 | 4,224 | ||
| Total non-current liabilities | 32,683 | 34,632 | 29,750 | ||
| Current liabilities | |||||
| Short-term loans | 3,514 | 6,469 | 4,876 | ||
| Current lease liabilities | 1,085 | 1,101 | 1,333 | ||
| Trade payables | 7,027 | 6,581 | 8,035 | ||
| Other current liabilities and provisions | 14,238 | 13,537 | 14,886 | ||
| Total current liabilities | 25,865 | 27,688 | 29,131 | ||
| TOTAL EQUITY AND LIABILITIES | 117,428 | 121,311 122,843 | |||
| CHANGES IN EQUITY | Equity attributable to: | ||
|---|---|---|---|
| Parent | Non | ||
| company's | controlling | Total | |
| SEK M | shareholders | interests | equity |
| Opening balance 1 January 2020 | 59,143 | 11 | 59,154 |
| Net income for the period | 3,263 | 2 | 3,264 |
| Other comprehensive income | -1,209 | 0 | -1,209 |
| Total comprehensive income | 2,054 | 2 | 2,055 |
| Dividend | -2,222 | -1 | -2,222 |
| Stock purchase plans | 4 | - | 4 |
| Total transactions with shareholders | -2,218 | -1 | -2,218 |
| Closing balance 30 June 2020 | 58,980 | 12 | 58,992 |
| Opening balance 1 January 2021 | 58,870 | 9 | 58,879 |
|---|---|---|---|
| Net income for the period | 5,465 | 0 | 5,465 |
| Other comprehensive income | 1,811 | 0 | 1,812 |
| Total comprehensive income | 7,277 | 0 | 7,277 |
| Dividend | -2,166 | -1 | -2,167 |
| Stock purchase plans | -28 | - | -28 |
| Total transactions with shareholders | -2,194 | -1 | -2,195 |
| Closing balance 30 June 2021 | 63,953 | 9 | 63,962 |
| CONDENSED STATEMENT OF CASH FLOWS | Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | ||
| OPERATING ACTIVITIES | ||||||
| Operating income | 2,097 | 3,589 | 4,848 | 6,776 | ||
| Depreciation and amortization | 927 | 963 | 1,852 | 1,892 | ||
| Restructuring payments | -173 | -129 | -255 | -267 | ||
| Other non-cash items | -58 | -39 | -54 | -95 | ||
| Cash flow before interest and tax | 2,794 | 4,385 | 6,391 | 8,305 | ||
| Interest paid and received | -244 | -175 | -416 | -297 | ||
| Tax paid on income | -474 | -820 | -1,352 | -1,352 | ||
| Cash flow before changes in working capital | 2,076 | 3,390 | 4,623 | 6,656 | ||
| Changes in working capital | 1,460 | -9 | -25 | -710 | ||
| Cash flow from operating activities | 3,536 | 3,381 | 4,599 | 5,947 | ||
| INVESTING ACTIVITIES | ||||||
| Net investments in intangible assets and property, plant and equipment | -442 | -388 | -933 | -677 | ||
| Investments in subsidiaries | -84 | -429 | -1,555 | -724 | ||
| Divestments of subsidiaries | 27 | 12 | 27 | 46 | ||
| Other investments and disposals | 0 | -42 | 0 | -42 | ||
| Cash flow from investing activities | -500 | -847 | -2,461 | -1,398 | ||
| FINANCING ACTIVITIES | ||||||
| Dividends | -2,222 | -2,167 | -2,222 | -2,167 | ||
| Amortization of lease liabilities | -322 | -315 | -649 | -627 | ||
| Net cash effect of changes in borrowings | 1,572 | -115 | 4,027 | -977 | ||
| Cash flow from financing activities | -972 | -2,597 | 1,156 | -3,770 | ||
| CASH FLOW FOR THE PERIOD | 2,064 | -62 | 3,294 | 779 | ||
| CASH AND CASH EQUIVALENTS | ||||||
| Cash and cash equivalents at beginning of period | 1,676 | 3,610 | 442 | 2,756 | ||
| Cash flow for the period | 2,064 | -62 | 3,294 | 779 | ||
| Effect of exchange rate differences | -14 | -3 | -10 | 9 | ||
| Cash and cash equivalents at end of period | 3,726 | 3,544 | 3,726 | 3,544 |
| THE GROUP IN SUMMARY | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Jan-Jun Jan-Jun | Year | Last 12 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | 2020 months | |
| Sales | 23,544 | 24,034 | 24,946 | 22,173 | 19,953 | 22,225 | 23,298 | 21,805 | 23,648 | 42,126 | 45,454 | 87,649 | 90,976 |
| Organic growth | 3% | 4% | 1% | -3% | -18% | -5% | -5% | 4% | 23% | -11% | 13% | -8% | - |
| Gross income1 | 9,500 | 9,625 | 9,979 | 8,973 | 7,648 | 9,026 | 9,278 | 8,722 | 9,438 | 16,621 | 18,159 | 34,925 | 36,463 |
| Gross margin 1 | 40.4% | 40.0% | 40.0% | 40.5% | 38.3% | 40.6% | 39.8% | 40.0% | 39.9% | 39.5% | 40.0% | 39.8% | 40.1% |
| EBITDA1 | 4,568 | 4,736 | 4,969 | 3,676 | 3,024 | 4,505 | 4,487 | 4,115 | 4,552 | 6,700 | 8,668 | 15,692 | 17,660 |
| EBITDA margin 1 | 19.4% | 19.7% | 19.9% | 16.6% | 15.2% | 20.3% | 19.3% | 18.9% | 19.3% | 15.9% | 19.1% | 17.9% | 19.4% |
| Depreciation, excl attrib. to business combinations | -716 | -726 | -781 | -792 | -787 | -771 | -853 | -774 | -812 | -1,579 | -1,586 | -3,202 | -3,210 |
| EBITA1 | 3,852 | 4,010 | 4,188 | 2,884 | 2,237 | 3,734 | 3,634 | 3,341 | 3,740 | 5,122 | 7,082 | 12,490 | 14,450 |
| EBITA margin 1 | 16.4% | 16.7% | 16.8% | 13.0% | 11.2% | 16.8% | 15.6% | 15.3% | 15.8% | 12.2% | 15.6% | 14.3% | 15.9% |
| Amortization attrib. to business combinations | -120 | -115 | -141 | -133 | -141 | -142 | -159 | -154 | -151 | -274 | -305 | -574 | -606 |
| Operating income (EBIT)1 | 3,733 | 3,894 | 4,047 | 2,751 | 2,097 | 3,593 | 3,475 | 3,187 | 3,589 | 4,848 | 6,776 | 11,916 | 13,844 |
| Operating margin (EBIT) 1 | 15.9% | 16.2% | 16.2% | 12.4% | 10.5% | 16.2% | 14.9% | 14.6% | 15.2% | 11.5% | 14.9% | 13.6% | 15.2% |
| Items affecting comparability | - | - | -312 | - | - | 1 910 | -1,367 | - | - | - | - | 542 | 542 |
| Operating income (EBIT) | 3,733 | 3,894 | 3,735 | 2,751 | 2,097 | 5,502 | 2,108 | 3,187 | 3,589 | 4,848 | 6,776 | 12,458 | 14,386 |
| Operating margin (EBIT) | 15.9% | 16.2% | 15.0% | 12.4% | 10.5% | 24.8% | 9.0% | 14.6% | 15.2% | 11.5% | 14.9% | 14.2% | 15.8% |
| Net financial items | -271 | -250 | -268 | -232 | -205 | -176 | -169 | -142 | -148 | -437 | -290 | -782 | -635 |
| Income before tax | 3,462 | 3,645 | 3,467 | 2,519 | 1,892 | 5,326 | 1,938 | 3,045 | 3,441 | 4,411 | 6,486 | 11,676 | 13,751 |
| Profit margin | 14.7% | 15.2% | 13.9% | 11.4% | 9.5% | 24.0% | 8.3% | 14.0% | 14.6% | 10.5% | 14.3% | 13.3% | 15.1% |
| Tax on income | -900 | -948 | -947 | -655 | -492 | -888 | -469 | -792 | -229 | -1,147 | -1,021 | -2,504 | -2,378 |
| Net income for the period | 2,562 | 2,697 | 2,520 | 1,864 | 1,400 | 4,438 | 1,470 | 2,253 | 3,212 | 3,264 | 5,465 | 9,172 | 11,373 |
| Net income attributable to: | |||||||||||||
| Parent company's shareholders | 2,561 | 2,696 | 2,517 | 1,864 | 1,399 | 4,437 | 1,471 | 2,253 | 3,212 | 3,263 | 5,465 | 9,171 | 11,374 |
| Non-controlling interests | 0 | 1 | 3 | 1 | 1 | 1 | -1 | 0 | 0 | 2 | 0 | 1 | -1 |
| OPERATING CASH FLOW | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Jan-Jun Jan-Jun | Year | Last 12 | |
| SEK M | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2020 | 2021 | 2020 months | |
| Operating income (EBIT) | 3,733 | 3,894 | 3,735 | 2,751 | 2,097 | 5,502 | 2,108 | 3,187 | 3,589 | 4,848 | 6,776 | 12,458 | 14,386 |
| Reversal items affecting comparability | - | - | 312 | - | - | -1,910 | 1,367 - | - | 0 | - | -542 | -542 | |
| Depreciation and amortization | 835 | 842 | 922 | 925 | 927 | 912 | 1,012 | 929 | 963 | 1,852 | 1,892 | 3,776 | 3,816 |
| Net capital expenditure | -406 | -410 | -525 | -491 | -442 | -301 | -439 | -289 | -388 | -933 | -677 | -1,674 | -1,417 |
| Change in working capital | 242 | 591 | 1,364 | -1,485 | 1,460 | 820 | 1,811 | -701 | -9 | -25 | -710 | 2,606 | 1,921 |
| Interest paid and received | -277 | -179 | -233 | -172 | -244 | -90 | -189 | -122 | -175 | -416 | -297 | -694 | -575 |
| Repayment of lease liabilities | -281 | -300 | -316 | -326 | -322 | -308 | -319 | -311 | -315 | -649 | -627 | -1,275 | -1,253 |
| Non-cash items | -210 | -37 | -24 | 4 | -58 | -219 | 178 | -57 | -39 | -54 | -95 | -95 | -137 |
| Operating cash flow | 3,636 | 4,401 | 5,235 | 1,206 | 3,418 | 4,407 | 5,529 | 2,636 | 3,627 | 4,624 | 6,262 | 14,560 | 16,198 |
| Cash conversion | 1.05 | 1.21 | 1.39 | 0.48 | 1.81 | 1.29 | 1.67 | 0.87 | 1.05 | 1.05 | 0.97 | 1.31 | 1.23 |
| CHANGE IN NET DEBT SEK M |
Q2 2019 |
Q3 2019 |
Q4 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
2020 | Jan-Jun Jan-Jun 2021 |
Year | Last 12 2020 months |
| Net debt at beginning of period | 35,100 | 37,620 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 33,050 | 29,755 | 33,050 | 34,112 |
| Operating cash flow | -3,636 | -4,401 | -5,235 | -1,206 | -3,418 | -4,407 | -5,529 | -2,636 | -3,627 | -4,624 | -6,262 | -14,560 | -16,198 |
| Restructuring payments | 123 | 181 | 261 | 83 | 173 | 155 | 337 | 138 | 129 | 255 | 267 | 747 | 759 |
| Tax paid on income | 942 | 577 | 1,651 | 878 | 474 | 1,104 | 648 | 532 | 820 | 1,352 | 1,352 | 3,104 | 3,104 |
| Acquisitions and divestments | 964 | 1,425 | 1,018 | 1,584 | 86 | 4,331 | -497 | 385 | 472 | 1,670 | 858 | 5,504 | 4,691 |
| Dividend | 3,888 | - | - | - | 2,222 | - | 2,055 | - | 2,167 | 2,222 | 2,167 | 4,277 | 4,221 |
| Actuarial gain/loss on post-employment benefit oblig. | 210 | 289 | -316 | 139 | 407 | 94 | -321 | -619 | -44 | 546 | -663 | 319 | -891 |
| Change to lease liabilities | -111 | -51 | 47 | -1 | -110 | 98 | -93 | -29 | -97 | -111 | -126 | -106 | -121 |
| Exchange rate differences, etc. | 140 | 1,203 | -1,218 | 1,845 | -2,093 | -428 | -1,904 | 1,633 | -471 | -248 | 1,163 | -2,580 | -1,169 |
| Net debt at end of period | 37,620 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 34,112 | 28,509 | 29,755 | 28,509 |
| Net debt/Equity | 0.70 | 0.64 | 0.56 | 0.58 | 0.58 | 0.56 | 0.51 | 0.46 | 0.45 | ||||
| NET DEBT | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||
| SEK M | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | ||||
| Interest-bearing assets | -144 | -113 | -100 | -108 | -76 | -47 | -205 | -189 | -176 | ||||
| Cash and cash equivalents | -355 | -459 | -442 | -1,676 | -3,726 | -4,906 | -2,756 | -3,610 | -3,544 | ||||
| Derivative financial instruments, net | -127 | 8 | -53 | -469 | -441 | -350 | -255 | 83 | 1 | ||||
| Pension provisions | 3,324 | 3,717 | 3,346 | 3,642 | 3,887 | 4,164 | 3,514 | 2,995 | 2,922 | ||||
| Lease liabilities | 3,694 | 3,746 | 3,739 | 3,924 | 3,614 | 3,818 | 3,562 | 3,678 | 3,530 | ||||
| Interest-bearing liabilities | 31,228 | 29,944 | 26,560 | 31,059 | 30,853 | 32,379 | 25,895 | 26,202 | 25,776 | ||||
| Total | 37,620 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | ||||
| CAPITAL EMPLOYED AND FINANCING | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||
| SEK M | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | ||||
| Capital employed | 91,334 | 94,796 | 92,204 | 99,428 | 93,103 | 97,232 | 88,634 | 92,818 | 92,471 | ||||
| - of which goodwill | 56,179 | 59,134 | 57,662 | 61,573 | 58,243 | 64,013 | 58,344 | 60,822 | 60,198 | ||||
| - of which other intangible assets and PPE | 20,386 | 21,296 | 21,191 | 22,189 | 21,064 | 21,613 | 22,134 | 22,775 | 22,190 | ||||
| - of which right-of-use assets | 3,705 | 3,746 | 3,731 | 3,909 | 3,592 | 3,779 | 3,513 | 3,619 | 3,466 | ||||
| - of which investments in associates | 2,534 | 2,643 | 2,595 | 2,772 | 2,665 | 685 | 637 | 638 | 626 | ||||
| Net debt | 37,620 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | ||||
| Non-controlling interests | 6 | 8 | 11 | 13 | 12 | 12 | 9 | 10 | 9 | ||||
| Equity attributable to Parent company´s shareholders | 53,708 | 57,946 | 59,143 | 63,044 | 58,980 | 62,161 | 58,870 | 63,649 | 63,953 | ||||
| OTHER KEYRATIOS | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||
| Earnings per share, SEK | 2019 2,31 |
2019 2,43 |
2019 2,27 |
2020 1,68 |
2020 1,26 |
2020 3,99 |
2020 1,32 |
2021 2,03 |
2021 2,89 |
||||
| Earnings per share, excl IAC, SEK 1 | 2,31 | 2,43 | 2,49 | 1,68 | 1,26 | 2,28 | 2,33 | 2,03 | 2,89 | ||||
| Shareholders' equity per share, SEK | 48,35 | 52,17 | 53,25 | 56,76 | 53,10 | 55,96 | 53,00 | 57,30 | 57,57 | ||||
| Return on capital employed | 16,4% | 16,3% | 16,2% | 15,2% | 13,4% | 13,1% | 12,5% | 13,1% | 14,9% | ||||
| Return on equity | 17,2% | 16,9% | 18,0% | 16,3% | 15,0% | 17,0% | 15,5% | 15,1% | 18,5% | ||||
| Net debt/EBITDA | 2,2 | 2,1 | 1,8 | 2,0 | 2,1 | 2,2 | 1,9 | 1,8 | 1,6 | ||||
| Average number of employees | 49,218 | 49,136 | 48,992 | 48,801 | 46,979 | 47,553 | 48,471 | 49,685 | 50,727 | ||||
| Average number of shares, thousands | 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 |
1) Excluding items affecting comparability (IAC) consisting of restructuring costs and revaluation of previously owned shares in associates.
| Q2 and 30 Jun | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Sales, external | 3,752 | 5,126 | 4,379 | 4,947 | 2,067 | 1,989 | 3,232 | 3,610 | 6,523 | 7,976 | - | - | 19,953 23,648 | |
| Sales, internal | 120 | 109 | 17 | 34 | 290 | 254 | 20 | 31 | 29 | 31 | -477 | -458 | - | - |
| Sales | 3,871 5,235 | 4,396 4,981 | 2,357 2,244 | 3,253 3,641 | 6,552 8,007 | -477 | -458 19,953 23,648 | |||||||
| Organic growth | -25% | 39% | -18% | 26% | -17% | 0% | -25% | 17% | -8% | 21% | - | - | -18% | 23% |
| Acquisitions and divestments | -1% | 0% | -9% | 1% | -1% | -1% | 13% | 4% | 12% | 12% | - | - | 3% | 5% |
| Exchange-rate effects | -1% | -4% | 2% | -14% | -1% | -4% | 0% | -9% | 0% | -11% | - | - | 0% | -9% |
| Share of earnings in associates | - | - | - | - | 5 | 3 | - - |
37 | - | - | - | 42 | 3 | |
| Operating income (EBIT) | 220 | 782 | 769 1,017 | 167 | 202 | 328 | 573 | 745 1,196 | -132 | -181 | 2,097 3,589 | |||
| Operating margin (EBIT) | 5.7% 14.9% | 17.5% 20.4% | 7.1% | 9.0% | 10.1% 15.7% | 11.4% 14.9% | - | - | 10.5% 15.2% | |||||
| Operating income (EBIT) | 220 | 782 | 769 | 1,017 | 167 | 202 | 328 | 573 | 745 | 1,196 | -132 | -181 | 2,097 | 3,589 |
| Depreciation and amortization | 234 | 230 | 121 | 149 | 92 | 76 | 228 | 226 | 246 | 273 | 7 | 9 | 927 | 963 |
| Net capital expenditure | -110 | -123 | -74 | -101 | -64 | -25 | -130 | -54 | -63 | -85 | -1 | 0 | -442 | -388 |
| Amortization of lease liabilities | -79 | -87 | -32 | -37 | -25 | -24 | -36 | -35 | -146 | -128 | -3 | -4 | -322 | -315 |
| Change in working capital | 321 | -1 | 459 | 383 | 138 | -77 | 175 | 94 | 377 | -333 | -10 | -75 | 1,460 | -9 |
| Operating cash flow by division | 585 | 801 | 1,244 1,412 | 307 | 151 | 564 | 804 | 1,159 | 923 | -140 | -251 | 3,719 3,840 | ||
| Non-cash items | -58 | -39 | -58 | -39 | ||||||||||
| Interest paid and received | -244 | -175 | -244 | -175 | ||||||||||
| Operating cash flow | 3,418 3,627 |
Jan-Jun and 30 Jun SEK M 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Sales, external 8,680 10,082 9,628 9,506 3,461 3,533 7,135 6,885 13,222 15,448 - - 42,126 45,454 Sales, internal 236 210 40 79 484 483 51 57 57 58 -867 -888 - - Sales 8,916 10,292 9,668 9,585 3,945 4,017 7,186 6,942 13,279 15,506 -867 -888 42,126 45,454 Organic growth -14% 20% -8% 12% -25% 9% -13% 3% -4% 16% - - -11% 13% Acquisitions and divestments -1% 1% -8% 1% 1% -2% 13% 3% 11% 12% - - 3% 4% Exchange-rate effects 0% -6% 3% -14% 0% -5% 2% -9% 2% -11% - - 2% -9% Share of earnings in associates - - - - 9 5 - - 77 - - - 86 5 Operating income (EBIT) 827 1,537 1,817 1,971 14 280 891 1,045 1,567 2,292 -268 -349 4,848 6,776 Operating margin (EBIT) 9.3% 14.9% 18.8% 20.6% 0.4% 7.0% 12.4% 15.1% 11.8% 14.8% - - 11.5% 14.9% Operating income (EBIT) 827 1,537 1,817 1,971 14 280 891 1,045 1,567 2,292 -268 -349 4,848 6,776 Depreciation and amortization 462 461 246 261 183 154 453 453 493 544 14 19 1,852 1,892 Net capital expenditure -225 -205 -193 -167 -107 -65 -255 -92 -151 -147 -3 -1 -933 -677 Amortization of lease liabilities -162 -168 -65 -71 -54 -48 -74 -71 -287 -262 -7 -6 -649 -627 Change in working capital -186 -237 19 144 -23 -264 -89 98 391 -445 -138 -6 -25 -710 Operating cash flow by division 717 1,388 1,824 2,139 14 57 927 1,434 2,014 1,981 -402 -344 5,094 6,655 Non-cash items -54 -95 -54 -95 Interest paid and received -416 -297 -416 -297 Operating cash flow 4,624 6,262 Capital employed 18,873 18,104 14,934 14,171 8,492 8,000 22,780 21,609 27,772 31,039 251 -452 93,103 92,471 - of which goodwill 10,907 11,168 11,559 11,133 4,079 3,811 15,679 15,370 16,018 18,716 - - 58,243 60,198 - of which other intangible assets and PPE 3,949 3,516 3,149 2,804 2,471 2,351 5,691 5,073 5,740 8,355 64 90 21,064 22,190 - of which right-of-use assets 939 947 415 389 203 255 514 516 1,509 1,311 12 47 3,592 3,466 - of which investments in associates 1 1 - - 650 577 23 28 1,992 20 - - 2,665 626 Return on capital employed 12.8% 16.1% 23.4% 28.1% 5.5% 7.8% 10.9% 9.9% 13.8% 15.5% - - 13.4% 14.9% Average number of employees 10,049 12,235 8,492 8,963 9,816 8,419 6,454 6,438 11,802 14,413 366 260 46,979 50,727 Total Global Entrance EMEIA Americas Asia Pacific Technologies Systems Other
| Q1-Q4 and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 2020 | |
| Sales, external | 20,707 18,563 | 23,082 18,907 | 9,477 | 7,916 | 15,321 14,054 | 25,442 28,210 | - | - | 94,029 87,649 | |||||
| Sales, internal | 438 | 418 | 90 | 107 | 1,213 | 926 | 102 | 105 | 110 | 113 | -1,953 -1,668 | - | - | |
| Sales | 21,144 18,982 23,172 19,013 10,689 8,841 15,423 14,158 25,553 28,323 | -1,953 -1,668 94,029 87,649 | ||||||||||||
| Organic growth | 2% | -8% | 7% | -7% | -1% | -16% | 5% | -15% | 2% | -2% | - | - | 3% | -8% |
| Acquisitions and divestments | 0% | -1% | 2% | -9% | 5% | 1% | 16% | 10% | 1% | 15% | - | - | 3% | 4% |
| Exchange-rate effects | 3% | -1% | 8% | -2% | 3% | -2% | 8% | -3% | 5% | -2% | - | - | 6% | -3% |
| Share of earnings in associates | - | - | - | - | 17 | 9 | 5 | 9 | 124 | 239 | - | - | 147 | 257 |
| EBIT, excl IAC | 3,396 2,263 | 4,673 3,698 | 879 | 396 | 2,890 2,023 | 3,652 4,083 | -570 | -547 14,920 11,916 | ||||||
| EBIT margin, excl. IAC | 16.1% 11.9% | 20.2% 19.4% | 8.2% | 4.5% | 18.7% 14.3% | 14.3% 14.4% | - | - | 15.9% 13.6% | |||||
| Restructuring costs | -185 | -448 | - | -51 | -6 | -303 | -4 | -195 | -116 | -220 | - | -150 | -312 -1,366 | |
| Revaluation previously owned shares in associates | - | - | - | - | - | - | - | - | - | 1,909 | - | - | - | 1,909 |
| Operating income (EBIT) | 3,211 1,815 | 4,673 3,647 | 873 | 93 | 2,885 1,828 | 3,535 5,772 | -570 | -697 14,608 12,458 | ||||||
| Operating margin (EBIT) | 15.2% | 9.6% | 20.2% 19.2% | 8.2% | 1.1% | 18.7% 12.9% | 13.8% 20.4% | - | - | 15.5% 14.2% | ||||
| Capital employed | 18,659 16,849 | 19,678 13,201 | 9,053 | 8,191 | 22,329 21,044 | 23,024 30,231 | -539 | -883 | 92,204 88,634 | |||||
| - of which goodwill | 11,121 10,475 | 14,105 10,444 | 4,168 | 3,884 | 15,459 14,881 | 12,809 18,660 | - | - | 57,662 58,344 | |||||
| - of which other intangible assets and PPE | 4,092 | 3,485 | 4,423 | 2,713 | 2,469 | 2,375 | 5,632 | 5,100 | 4,451 | 8,362 | 124 | 99 | 21,191 22,134 | |
| - of which right-of-use assets | 990 | 998 | 499 | 387 | 260 | 264 | 463 | 457 | 1,499 | 1,390 | 19 | 17 | 3,731 | 3,513 |
| - of which investments in associates | 1 | 1 | - | - | 637 | 589 | 23 | 28 | 1,935 | 20 | - | - | 2,595 | 637 |
| Return on capital employed | 17.2% 11.9% 23.3% 24.4% 10.0% 4.4% 13.5% 8.9% 15.8% 13.9% | - | - | 16.2% 12.5% | ||||||||||
| Operating income (EBIT) | 3,211 | 1,815 | 4,673 | 3,647 | 873 | 93 | 2,885 | 1,828 | 3,535 | 5,772 | -570 | -697 | 14,608 12,458 | |
| Restructuring costs | 185 | 448 | - 51 |
6 | 303 | 4 | 195 | 116 | 220 | - | 150 | 312 | 1,366 | |
| Revaluation previously owned shares in associates | - - |
- - |
- | - | - - |
- -1,909 | - | - | - -1,909 | |||||
| Depreciation and amortization | 813 | 925 | 569 | 471 | 381 | 355 | 793 | 917 | 794 | 1,078 | 36 | 30 | 3,387 | 3,776 |
| Net capital expenditure | -454 | -407 | -348 | -267 | -220 | -192 | -366 | -430 | -276 | -330 | 3 | -47 | -1,662 -1,674 | |
| Amortization of lease liabilities | -295 | -318 | -149 | -132 | -100 | -108 | -129 | -144 | -477 | -559 | -9 | -14 | -1,159 -1,275 | |
| Change in working capital | 53 | 476 | 517 | 1,067 | -319 | 311 | -5 | 144 | -38 | 702 | -61 | -94 | 148 | 2,606 |
| Operating cash flow by division | 3,515 2,939 | 5,263 4,837 | 622 | 762 | 3,183 2,509 | 3,655 4,974 | -602 | -673 15,635 15,349 | ||||||
| Non-cash items | -324 | -95 | -324 | -95 | ||||||||||
| Interest paid and received | -869 | -694 | -869 | -694 | ||||||||||
| Operating cash flow | 14,442 14,560 | |||||||||||||
| Average number of employees | 11,373 10,281 | 9,360 | 8,787 | 11,016 | 9,892 | 5,594 | 6,374 | 11,313 12,883 | 336 | 254 | 48,992 48,471 |
NOTE 1 DISAGGREGATION OF REVENUE
| Sales by continent Q2 | EMEIA | Americas | Asia Pacific | Global Technologies |
Entrance Systems |
Other | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Europe | 3,414 | 4,542 | 8 | 19 | 148 | 144 | 840 | 1,033 | 2,474 | 3,614 | -209 | -203 | 6,675 | 9,150 |
| North America | 105 | 110 | 4,113 | 4,433 | 215 | 243 | 1,521 | 1,747 | 3,567 | 3,860 | -178 | -156 | 9,342 10,238 | |
| Central- and South America | 15 | 19 | 255 | 489 | 10 | 8 | 80 | 89 | 24 | 18 | -13 | -12 | 371 | 611 |
| Africa | 110 | 272 | 1 | 3 | 5 | 4 | 105 | 60 | 15 | 8 | -7 | -9 | 230 | 337 |
| Asia | 194 | 263 | 18 | 35 | 1,430 | 1,235 | 511 | 507 | 290 | 256 | -37 | -49 | 2,405 | 2,247 |
| Oceania | 34 | 29 | 1 | 2 | 549 | 609 | 196 | 204 | 182 | 251 | -33 | -30 | 929 | 1,065 |
| Total | 3,871 | 5,235 | 4,396 | 4,981 | 2,357 | 2,244 | 3,253 | 3,641 | 6,552 | 8,007 | -477 | -458 | 19,953 23,648 | |
| Sales by continent Jan-Jun | EMEIA | Americas | Asia Pacific | Global Technologies |
Entrance Systems |
Other | Total | |||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Europe | 7,892 | 8,998 | 19 | 48 | 250 | 288 | 1,895 | 1,982 | 5,325 | 7,124 | -370 | -417 | 15,011 18,022 | |
| North America | 224 | 201 | 8,973 | 8,531 | 398 | 442 | 3,465 | 3,362 | 7,030 | 7,357 | -318 | -285 | 19,772 19,608 | |
| Central- and South America | ||||||||||||||
| 33 | 34 | 628 | 930 | 24 | 19 | 198 | 164 | 38 | 34 | -25 | -22 | 895 | 1,160 | |
| Africa | 279 | 468 | 5 | 5 | 9 | 5 | 217 | 125 | 31 | 25 | -13 | -18 | 528 | 611 |
| Asia Oceania |
425 64 |
537 54 |
40 3 |
67 4 |
2,162 1,102 |
2,104 1,159 |
1,039 372 |
936 372 |
514 341 |
494 472 |
-77 -64 |
-90 -57 |
4,103 1,817 |
4,048 2,005 |
| Sales by product group Q2 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Mechanical locks, lock systems and fittings | 1,786 | 2,515 | 1,790 | 2,146 | 1,133 | 1,120 | 70 | 87 | 1 | 2 | -185 | -162 | 4,595 | 5,707 |
| Electromechanical and electronic locks | 1,321 | 1,692 | 1,102 | 1,242 | 550 | 505 | 3,130 | 3,529 | 147 | 230 | -233 | -235 | 6,017 | 6,962 |
| Security doors and hardware | 654 | 866 | 1,496 | 1,584 | 658 | 596 | 52 | 25 | 610 | 709 | -26 | -26 | 3,444 | 3,755 |
| Entrance automation | 109 | 161 | 9 | 8 | 17 | 23 | - | - | 5,793 | 7,066 | -32 | -35 | 5,896 | 7,223 |
| Total | 3,871 | 5,235 | 4,396 | 4,981 | 2,357 | 2,244 | 3,253 | 3,641 | 6,552 | 8,007 | -477 | -458 | 19,953 23,648 | |
| Sales by product group Jan-Jun | EMEIA | Americas | Asia Pacific | Global Technologies |
Entrance Systems |
Other | Total | |||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mechanical locks, lock systems and fittings | 4,224 | 4,958 | 3,998 | 4,120 | 2,026 | 2,037 | 155 | 165 | 3 | 4 | -350 | -324 | 10,056 10,959 | |
| Electromechanical and electronic locks | 2,982 | 3,357 | 2,404 | 2,378 | 812 | 888 | 6,912 | 6,740 | 352 | 501 | -407 | -445 | 13,055 13,419 | |
| Security doors and hardware | 1,475 | 1,686 | 3,248 | 3,072 | 1,079 | 1,052 | 119 | 37 | 1,186 | 1,399 | -47 | -51 | 7,061 | 7,195 |
| Entrance automation | 235 | 291 | 17 | 15 | 28 | 40 | - | - | 11,738 13,602 | -64 | -67 | 11,954 13,880 | ||
| Total | 8,916 10,292 | 9,668 | 9,585 | 3,945 | 4,017 | 7,186 | 6,942 | 13,279 15,506 | -867 | -888 | 42,126 45,454 |
NOTE 2 BUSINESS COMBINATIONS
Consolidated acquisitions 2021
| Number of | Approx. | Month of | |||
|---|---|---|---|---|---|
| Acquisition | Division | Country | employees | sales in 2020 | consolidation |
| Traka Iberia | Global Technologies | Spain | <50 | <50 SEK M | 2021-02 |
| Technology Solutions | Global Technologies | UK | 25 | 30 SEK M | 2021-02 |
| Invengo Textile Services | Global Technologies | France | 45 | 110 SEK M | 2021-03 |
| Prosystech/SimpleK | Americas | Canada | <50 | <50 SEK M | 2021-04 |
| Sure-Loc | Americas | USA | 45 | 120 SEK M | 2021-05 |
| Pucon | Americas | Peru | <50 | <50 SEK M | 2021-06 |
| Q2 | Jan-Jun | ||||
|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Purchase prices | |||||
| Cash paid for acquisitions during the year | -12 | 258 | 1,268 | 408 | |
| Holdbacks and deferred considerations for acquisitions during the year | -94 | 21 | 180 | 74 | |
| Adjustment of purchase prices for acquisitions in prior years | 30 | 0 | 27 | -7 | |
| Total | -76 | 279 | 1,474 | 475 | |
| Acquired assets and liabilities at fair value | |||||
| Intangible assets | 83 | -5 | 169 | 128 | |
| Property, plant and equipment and right-of-use assets | 72 | 1 | 196 | 9 | |
| Other non-current assets | 4 | 1 | 4 | 2 | |
| Inventories | 3 | 36 | 81 | 64 | |
| Current receivables and investments | -25 | 22 | 78 | 75 | |
| Cash and cash equivalents | 4 | 8 | 36 | 88 | |
| Non-current liabilities | -19 | 96 | -132 | -20 | |
| Current liabilities | -12 | -111 | -213 | -173 | |
| Total | 108 | 48 | 219 | 174 | |
| Goodwill | -184 | 231 | 1,255 | 301 | |
| Change in cash and cash equivalents due to acquisitions | |||||
| Cash paid for acquisitions during the year | -12 | 258 | 1,268 | 408 | |
| Cash and cash equivalents in acquired subsidiaries | -4 | -8 | -36 | -88 | |
| Paid considerations for acquisitions in prior years | 100 | 178 | 323 | 405 | |
| Total | 84 | 429 | 1,555 | 724 |
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.
NOTE 3 FAIR VALUE AND CARRYING AMOUNT ON FINANCIAL ASSETS AND LIABILITIES
| 30 June 2021 | Financial instruments at fair value |
||||
|---|---|---|---|---|---|
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Financial assets at amortized cost | 18,862 | 18,862 | |||
| Financial assets at fair value through profit and loss | 48 | 48 | |||
| Derivatives - hedge accounting | 118 | 118 | 118 | ||
| Derivatives - held for trading | 63 | 63 | 63 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 33,811 | 34,162 | |||
| Financial liabilities at fair value through profit and loss | 465 | 465 | 465 | ||
| Lease liabilities | 3,530 | 3,530 | |||
| Derivatives - hedge accounting | 0 | 0 | 0 | ||
| Derivatives - held for trading | 182 | 182 | 182 | ||
| Financial instruments at fair value |
|||||
| 31 December 2020 | Carrying | Fair | |||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Loans and other receivables | 16,674 | 16,674 | |||
| Financial assets at fair value through profit and loss | 6 | 6 | |||
| Available-for-sale financial assets | 187 | 187 | 187 | ||
| Derivative instruments - hedge accounting | 240 | 240 | 240 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 32,922 | 33,480 | |||
| Financial liabilities at fair value through profit and loss | 944 | 944 | 944 | ||
| Lease liabilities | 3,562 | 3,562 | |||
| Derivatives - hedge accounting | 0 | 0 | 0 | ||
| Derivatives - held for trading | 171 | 171 | 171 |
Financial liabilities at fair value through profit and loss pertains to deferred considerations, Deferred considerations are initially measured on the day of acquisition based i.e. additional payments for acquired companies. The size of a deferred consideration is on management's best estimate regarding future outcomes and belong to usually linked to the earnings and sales performance in an acquired company during a level 3 in the hierarchy. specific period of time.
| CONDENSED INCOME STATEMENT | Year | Jan-Jun | |
|---|---|---|---|
| SEK M | 2020 | 2020 | 2021 |
| Operating income | 868 | 494 | 497 |
| Income before appropriations and tax | 5,363 | 1,742 | 3,068 |
| Net income for the period | 5,552 | 1,662 | 2,979 |
| CONDENSED BALANCE SHEET | 31 Dec | 30 Jun | |
|---|---|---|---|
| SEK M | 2020 | 2020 | 2021 |
| Non-current assets | 38,961 | 38,314 | 43,437 |
| Current assets | 21,069 | 23,110 | 20,832 |
| Total assets | 60,030 | 61,424 | 64,269 |
| Equity | 26,186 | 24,328 | 26,971 |
| Untaxed reserves | 1,125 | 911 | 1,125 |
| Non-current liabilities | 15,677 | 17,484 | 14,192 |
| Current liabilities | 17,042 | 18,701 | 21,980 |
| Total equity and liabilities | 60,030 | 61,424 | 64,269 |
Organic growth Net debt
Change in sales for comparable units after adjustments for Interest-bearing liabilities less interest-bearing assets. acquisitions, divestments and exchange rate effects. See the table on net debt for detailed information.
Operating margin (EBITDA) Capital employed
Operating income before depreciation and amortization as a Total assets less interest-bearing assets and non-interestpercentage of sales. bearing liabilities including deferred tax liability.
Operating margin (EBITA) Net debt/Equity ratio
Operating income before amortization of intangible assets Net debt in relation to equity. recognized in business combinations, as a percentage of sales.
Operating income as a percentage of sales.
Income before tax as a percentage of sales. the last twelve months.
payments and tax paid on income minus net capital expenditure Comparability, for the last twelwe months as a percentage of
Cash conversion
Operating cash flow in relation to income before tax excluding Return on equity
Investments in, less disposals of, intangible assets and property, plant and equipment. Earnings per share after tax and dilution
Depreciation, amortization and impairment of intangible assets, potential dilution. property, plant and equipment and right-of-use assets.
Equity ratio
Operating margin (EBIT) Shareholders' equity as a percentage of total assets.
Net debt/EBITDA
Profit margin (EBT) Net debt at the end of the period in relation to EBITDA for
Operating cash flow Return on capital employed
Cash Flow from operating activities excluding restructuring Operating Income (EBIT), excluding Items Affecting and repayment of lease liabilities. average capital employed excluding restructuring provisions for the same period.
items affecting comparability. Net income attributable to parent company's shareholders for the last twelve months as a percentage of average parent Net capital expenditure company's shareholders equity for the same period.
Net income excluding non-controlling interests divided by Depreciation and amortization weighted average number of outstanding shares after any
Shareholders' equity per share after dilution
Equity excluding non-controlling interests in relation to number of outstanding shares after any potential dilution.