Earnings Release • Feb 12, 2021
Earnings Release
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• 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.
1 The calculation of the net asset value on 11 February was based on the value of the investment portfolio at 1 p.m. on 11 February and the same values as at 31 December were used for the unlisted portfolio.
Investment AB Latour is a mixed investment company consisting primarily of wholly-owned industrial operations and an investment portfolio of listed holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of nine substantial holdings that had a market value of SEK 68 billion as at 31 December 2020. 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 15 billion.
"Despite the second wave of the pandemic hitting with full force and impacting Latour's business to varying degrees, the wholly-owned industrial operations grew organically in the fourth quarter. Our fourth-quarter performance was very strong. Although we are coming through the crisis relatively unscathed, we expect the uncertainty created by the pandemic to continue until it is over. Our operations are fully prepared to take additional measures, if and when necessary.
The fourth-quarter order intake was up 3 per cent and invoiced sales 6 per cent when adjusted for acquisitions and exchange rate movements. Operating profit increased by 37 per cent in the quarter to SEK 593 m (434 m) with a strong operating margin of 14.8 (12.1) per cent. When adjusted for acquisitions and exchange rate movements, we outperformed the previous year's operating profit by 28 per cent.
The whole year was marked by the pandemic and its effect on the global economy. Net sales rose 9 per cent to SEK 14,783 m (13,516 m) and the operating profit increased by 16 per cent to SEK 2,117 m (1,827 m) with an operating margin of 14.3 (13.5) per cent. These figures are very pleasing and confirm that we own sustainable and well-managed companies.
Our business areas have been giving the highest priority to the health and safety of employees while at the same time managing their operations to respond to the challenges that have arisen throughout the year in the best way possible. They have taken significant actions to mitigate the impact of the virus, above all by adopting a rigorous approach to cost control. The operations have benefited from government support schemes where appropriate, but only to a relatively small extent and primarily in the regions hit hardest by lockdown measures. Such government funding received in the fourth quarter was much less than in the third quarter and the second quarter in particular, and the impact on earnings in the quarter was marginal. As in the previous quarter, we have observed various trends and impacts depending on which market and segment one looks at. Generally, it can be said that the countries of northern Europe have been less affected than the rest of Europe. The operations in Asia and North America have experienced relatively positive growth. We have a diversified portfolio of holdings that are exposed to different geographic markets, customers and product segments, which has alleviated the negative impact of the crisis. Moreover, the majority of our companies are well-positioned in markets that are showing good growth potential which promotes positive development. One example of this is Caljan, whose customers are benefitting from the increase in online shopping.
The level of acquisition activity during the quarter has been high. Swegon has acquired SLT Schanze Lufttechnik. Furthermore, we have signed agreements for three more acquisitions: Vega for Latour Industries, Fristads AB, Kansas A/S, Kansas GmbH and Leijona Group Oy for Hultafors Group and Elsys for Bemsiq. The acquisitions of Vega and Elsys were finalised in early January 2021 and the acquisition of the Fristads companies is expected to be completed in February. Read more about our acquisitions on page 4.
Pandemic or not, we're looking ahead and investing in the future to maintain our competitive edge and grow our market share. Latour enjoys a strong financial position and is continuously investing in various projects across product development, sales and marketing. We remain committed to our focus on sustainability and digitalisation, which are key to underpinning future growth. In the fourth quarter, we established Latour Future Solutions, an investment area targeting sustainability-focused growth companies. Latour will enter as a minority shareholder in companies, where we can support them with our industrial expertise to accelerate the transition to a more sustainable society. We have begun by investing in Gaia Biomaterials, a company that develops and manufactures biodegradable biomaterials from renewable sources to replace fossil-based plastics.
Since the beginning of the year, the investment portfolio has increased by 9.1 per cent when adjusted for portfolio changes and dividends, while the benchmark index (SIXRX) increased by 14.8 per cent. The underlying growth in earnings of the companies has, with a few exceptions, also been good considering the pandemic. Most of the companies have been hit by a fall in organic sales, but have demonstrated considerable resilience and are posting good operating profits. The net asset value in Latour increased by 13.7 per cent to SEK 153 per share for the full year.
The Board of Directors proposes that the dividend be increased to SEK 3.00 per share, which is 9 per cent above the original dividend proposal in 2020. Last year's dividend was later reduced to SEK 1.25 per share for precautionary reasons."
Johan Hjertonsson President and Chief Executive Officer
In the fourth quarter, order intake grew by 7 per cent to SEK 3,903 m (3,632 m), with organic growth accounting for 3 per cent of this. Invoiced sales rose 11 per cent to SEK 3,989 m (3,591 m), which represents a 6 per cent increase for comparable entities and when adjusted for foreign exchange effects. Operating profit in the wholly-owned industrial operations increased by 37 per cent in the quarter to SEK 593 m (434 m). The operating margin was 14.8 (12.1) per cent.
Full-year order intake increased by 9 per cent to SEK 14,857 m (13,660 m), of which minus 3 per cent was organic. Invoiced sales rose 9 per cent to SEK 14,783 m (13,516 m), of which minus 2 per cent was organic. In the wholly-owned industrial operations, full-year operating profit increased by 16 per cent to SEK 2,117 m (1,827 m). The operating margin was 14.3 (13.5) per cent.
The above figures only include subsidiaries of the whollyowned business areas. See the separate report on page 5.
On 2 November, Swegon acquired the entire shareholding of SLT Schanze Lufttechnik (SLT), a supplier of diffusers in Germany with the engineering capability to provide complex and customised solutions for its customers. The acquisition strengthens Swegon's portfolio within Room Unit products and increases Swegon's position as one of the leading companies for indoor environment solutions. The company employs 70 people and its head office and production site are in Lingen, Germany. In 2019, the acquired operation reported net sales of EUR 10 m.
On 18 November, Latour Industries signed an agreement to acquire the entire shareholding of VEGA S.R.L. (VEGA), a company based in the Marche region in Italy. The transaction was completed on 12 January 2021. Vega is a leading designer and manufacturer of passenger interface systems and electronic systems for elevators and platform lifts. The company has 200 employees and is headquartered in Italy, with subsidiaries in the USA, Brazil, Albania and China. It generates net sales of over EUR 20 m with a strong operating margin.
On 11 December, Hultafors Group signed an agreement to acquire the entire shareholdings of Fristads AB, Kansas A/S, Kansas GmbH and Leijona Group Oy from Fristads Kansas AB. The companies are leading brands in professional workwear for a variety of end-use segments and have strong footholds in their respective key markets Sweden, Denmark, Germany and Finland. Net sales totalled approximately EUR 120 m in 2020 and the companies employ more than 600 people altogether. The acquisition is part of Hultafors Group's strategy to grow and develop leading brands in the Personal Protective Equipment segment in Europe and North America.
On 18 December, Latour Industries, through its subsidiary Bemsiq, signed an agreement to acquire 70 per cent of the shares of Elektroniksystem i Umeå AB ("Elsys"). The transaction was completed on 5 January 2021. Elsys is an internationally leading manufacturer and seller of LoRaWAN® sensors for applications for smart buildings and cities. The company has 7 employees and its head office and production site are in Umeå, Sweden. In 2020, it generated net sales of approximately SEK 50 m.
Four transactions took place earlier on in the year. The acquisition of the entire shareholding of S+S Regeltechnik in Germany for Bemsiq AB within Latour Industries was finalised on 22 January. The company is a pan-European leader in advanced sensor technology for measurement and control within building automation and mechanical engineering. The acquisition further strengthens Bemsiq's offering to the building automation segment and broadens the Group's geographical reach with a strong base in Germany. The company has 65 employees and generates sales of approximately EUR 16 m with good profitability.
On 28 January, MS Group, within Latour Industries, acquired the entire shareholding of the Spanish company Batec Mobility, which generates annual sales of EUR 4.8 m and has 41 employees. The company's products offer manual wheelchair users greater freedom of movement. An electric-powered addon motor allows users to travel more quickly over longer distances, even where there are steep slopes and rough ground.
On 30 January, Hultafors Group AB acquired 80 per cent of the shares in Daan Holding B.V., which in turn owns EMMA Safety Footwear B.V. ("EMMA") based in Kerkrade, the Netherlands. Leading up to the first quarter of 2023, Hultafors Group will successively acquire 100 per cent of the shares in Daan Holding B.V. EMMA has a strong presence in central Europe with a focus on the Benelux countries. In 2019, net sales totalled EUR 23 m with a level of profitability in line with Hultafors Group. The company has some 140 employees and recently set up a state-of-the-art facility in Kerkrade, the Netherlands, for the production of safety footwear. This acquisition is part of Hultafors Group's strategy to strengthen its position in personal protective equipment in Europe and North America. It is expected that the acquisition will further expand the company's sales and marketing capabilities in Europe and will also strengthen the supply chain with a footwear production facility and other resources.
On 11 March, Swegon acquired the entire shareholding of the UK company Waterloo Air Products, a leading manufacturer of air terminal devices. This acquisition enhances Swegon's offering, which now comprises a full range of high-quality indoor climate products. The company employs 140 people and its head office and production site are in Aylesford. In 2019, the acquired operation reported net sales of GBP 12 m.
In addition to the industrial operations' acquisitions, Latour has established a new investment area in the fourth quarter – Latour Future Solutions. The investment area targets sustainability-focused growth companies that Latour can support with industrial expertise to accelerate the development of solutions to build a long-term sustainable society. In connection with the establishment, Latour has made its first investment in Gaia BioMaterials AB. Latour has come in as a minority shareholder. Gaia BioMaterials develops and manufactures biodegradable biomaterials from renewable sources to replace fossil-based plastics.
| Net sales | Operating profit | Operating margin % | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||
| SEK m | Q4 | Q4 Full Year Full Year | Q4 | Q4 Full Year Full Year | Q4 | Q4 Full Year Full Year | |||||||
| Caljan¹ | 424 | 113 | 1,176 | 113 | 93 | 20 | 207 | 20 | 21.8 | 17.4 | 17.6 | 17.2 | |
| Hultafors Group | 1,041 | 866 | 3,641 | 2,896 | 182 | 138 | 561 | 412 | 17.5 | 15.9 | 15.4 | 14.2 | |
| Latour Industries | 855 | 810 | 3,081 | 3,076 | 105 | 60 | 312 | 267 | 12.3 | 7.4 | 10.1 | 8.7 | |
| Nord-Lock Group | 294 | 330 | 1,275 | 1,448 | 52 | 71 | 316 | 411 | 17.7 | 21.6 | 24.8 | 28.4 | |
| Swegon | 1,376 | 1,473 | 5,614 | 5,986 | 160 | 145 | 721 | 717 | 11.6 | 9.9 | 12.8 | 12.0 | |
| Eliminations | -1 | -1 | -4 | -3 | 1 | - | - | - | - | - | - | - | |
| 3,989 | 3,591 | 14,783 | 13,516 | 593 | 434 | 2,117 | 1,827 | 14.8 | 12.1 | 14.3 | 13.5 | ||
| Part-owned subsidiaries | 64 | 56 | 245 | 219 | 7 | 2 | 11 | 5 | 11.5 | 3.5 | 4.5 | 2.6 | |
| 4,053 | 3,647 | 15,028 | 13,735 | 600 | 436 | 2,128 | 1,832 | 14.8 | 11.9 | 14.2 | 13.3 | ||
| Gain/loss from sale/purchase of | |||||||||||||
| businesses | - | - | - | - | -12 | -63 | -38 | 29 | |||||
| Other companies and items | - | - | - | 3 | -15 | -8 | -38 | -43 | |||||
| 4,053 | 3,647 | 15,028 | 13,738 | 573 | 365 | 2,052 | 1,818 | ||||||
| Effect IFRS 16 | - | - | - | - | 2 | -1 | 5 | 1 | |||||
| 4,053 | 3,647 | 15,028 | 13,738 | 575 | 364 | 2,057 | 1,819 | ||||||
| Operating capital ² | Return on operating capital % | Growth in net sales, 2020 % | |||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| SEK m | Trailing 12 | Trailing 12 | Trailing 12 | Trailing 12 | Total | Organic | Currency | Acquisitions | |||||
| Caljan¹ | 2,706 | 441 | 7.6 | 4.4 | - | 22.5 | -1.5 | - | |||||
| Hultafors Group | 3,853 | 2,746 | 14.6 | 15.0 | 25.7 | 7.3 | -1.8 | 19.3 | |||||
| Latour Industries | 3,540 | 3,043 | 8.8 | 8.8 | 0.2 | -7.9 | -1.6 | 10.6 | |||||
| Nord-Lock Group | 1,207 | 1,106 | 26.2 | 37.1 | -12.0 | -10.1 | -2.1 | - |
¹ The figures for the previous year and trailing 12 months refer to the time from the acquisition date on 1 December 2019.
² 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.
Swegon 3,239 3,284 22.3 21.8 -6.2 -7.0 -2.1 3.0 Total 14,545 10,620 14.6 17.2 9.4 -2.4 -1.9 14.2
| 2020 2019* | 2020 | 2019* | ||
|---|---|---|---|---|
| (MEUR) | Q4 | Q4 | Full Year | Full Year |
| Net sales | 40.9 | 23.8 | 112.1 | 92.2 |
| EBITDA | 9.2 | 3.7 | 21.3 | 14.1 |
| EBITDA¹ | 9.1 | 3.6 | 21.0 | 14.0 |
| EBITA¹ | 8.9 | 3.4 | 20.3 | 13.1 |
| EBIT¹ | 8.8 | 3.3 | 19.7 | 13.1 |
| EBITA %¹ | 22.0 | 14.2 | 18.1 | 14.2 |
| EBIT %¹ | 21.8 | 14.0 | 17.6 | 14.2 |
| Total growth % | 69.4 | 21.6 | ||
| Organic % | 74.4 | 22.3 | ||
| Exchange effects % | -2.8 | -0.6 | ||
| Acquisitions % | - | - | ||
| Average number of employees | 502 | 465 | 493 | 465 |
¹ Excl. IFRS 16.
| 2020 2019* | 2020 | 2019* | ||
|---|---|---|---|---|
| (MEUR) | Q4 | Q4 | Full Year | Full Year |
| Telescopics | 15.3 | 12.7 | 59.5 | 56.2 |
| Document Handling & Labelling | 5.5 | 1.8 | 10.0 | 8.8 |
| Depot Automation Solutions | 10.6 | 3.3 | 18.2 | 5.5 |
| Aftermarket | 9.5 | 6.0 | 24.4 | 21.8 |
| 40.9 | 23.8 | 112.1 | 92.2 |
*Pro forma
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| Net sales | 1,041 | 866 | 3,641 | 2,896 |
| EBITDA | 202 | 150 | 628 | 462 |
| EBITDA¹ | 194 | 144 | 602 | 435 |
| EBITA¹ | 187 | 139 | 573 | 416 |
| EBIT¹ | 182 | 138 | 561 | 412 |
| EBITA %¹ | 17.9 | 16.0 | 15.7 | 14.4 |
| EBIT %¹ | 17.5 | 15.9 | 15.4 | 14.2 |
| Total growth % | 20.2 | 20.9 | 25.7 | 20.3 |
| Organic % | 16.2 | -0.3 | 7.3 | 3.2 |
| Exchange effects % | -4.6 | 3.2 | -1.8 | 3.2 |
| Acquisitions % | 8.4 | 17.5 | 19.3 | 13.1 |
| Average number of employees | 981 | 929 | 977 | 885 |
| ¹ Excl. IFRS 16. |
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| PPE/Workwear | 625 | 529 | 2,066 | 1,757 |
| Hardware | 416 | 337 | 1,575 | 1,139 |
| 1,041 | 866 | 3,641 | 2,896 | |
| Pro forma adjustment¹ | - | |||
| Trailing 12 month pro forma | 3,641 |
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, Dunderdon, CLC, Kuny's Leather, Solid Gear, Toe Guard, Hultafors, Wibe Ladders, Johnson Level, Hellberg Safety and EMMA. Hultafors Group is also a distributor for the German manufacturing company Fein in the Swedish market.
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| Net sales | 855 | 810 | 3,081 | 3,076 |
| EBITDA | 135 | 90 | 425 | 379 |
| EBITDA¹ | 122 | 77 | 379 | 327 |
| EBITA¹ | 110 | 65 | 333 | 285 |
| EBIT¹ | 105 | 60 | 312 | 267 |
| EBITA %¹ | 12.8 | 8.0 | 10.8 | 9.3 |
| EBIT %¹ | 12.3 | 7.4 | 10.1 | 8.7 |
| Total growth % | 5.6 | 8.5 | 0.2 | 12.4 |
| Organic % | 0.0 | -1.0 | -7.9 | 3.8 |
| Exchange effects % | -3.1 | 1.7 | -1.6 | 1.7 |
| Acquisitions % | 8.9 | 7.8 | 10.6 | 6.5 |
| Average number of employees | 1,442 | 1,482 | 1,532 | 1,465 |
¹ Excl. IFRS 16.
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| Bemsiq | 188 | 136 | 725 | 497 |
| Aritco Group | 244 | 224 | 843 | 792 |
| Vimec | 147 | 159 | 450 | 541 |
| MS Group | 115 | 118 | 470 | 529 |
| LSAB | 119 | 128 | 445 | 534 |
| Densiq | 44 | 48 | 159 | 193 |
| Elimination | -3 | -3 | -11 | -10 |
| 855 | 810 | 3,081 | 3,076 | |
| Pro forma adjustment¹ | 2 | |||
| Trailing 12 month pro forma | 3,083 |
¹ Pro forma for completed acquisitions.
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| Net sales | 294 | 330 | 1,275 | 1,448 |
| EBITDA | 70 | 87 | 380 | 471 |
| EBITDA¹ | 63 | 80 | 353 | 446 |
| EBITA¹ | 54 | 74 | 326 | 420 |
| EBIT¹ | 52 | 71 | 316 | 411 |
| EBITA %¹ | 18.5 | 22.3 | 25.5 | 29.0 |
| EBIT %¹ | 17.7 | 21.6 | 24.8 | 28.4 |
| Total growth % | -11.1 | -0.8 | -12.0 | 10.7 |
| Organic % | -4.8 | -5.9 | -10.1 | 4.4 |
| Exchange effects % | -6.6 | 5.4 | -2.1 | 5.4 |
| Acquisitions % | - | - | - | 0.5 |
| Average number of employees | 563 | 612 | 566 | 594 |
| ¹ Excl. IFRS 16. |
Highlights
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| EMEA | 132 | 141 | 564 | 652 |
| Americas | 72 | 101 | 331 | 394 |
| Asia Pacific | 90 | 88 | 379 | 402 |
| 294 | 330 | 1,275 | 1,448 | |
| Pro forma adjustment¹ | - | |||
| Trailing 12 month pro forma | 1,275 |
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.
Latour Industries consists of a number of operating areas, each with its own business concept and business model. Our ambition is to develop independent entities within the business area, so that they are eventually able to become established as separate business areas within Latour.
| (SEK m) | 2020 Q4 |
2019 Q4 |
2020 Full Year |
2019 Full Year |
|---|---|---|---|---|
| Net sales | 1,376 | 1,473 | 5,614 | 5,986 |
| EBITDA | 195 | 183 | 864 | 875 |
| EBITDA¹ | 181 | 164 | 806 | 804 |
| EBITA¹ | 164 | 149 | 736 | 733 |
| EBIT¹ | 160 | 145 | 721 | 717 |
| EBITA %¹ | 11.9 | 10.1 | 13.1 | 12.2 |
| EBIT %¹ | 11.6 | 9.9 | 12.8 | 12.0 |
| Total growth % | -6.6 | 3.7 | -6.2 | 16.5 |
| Organic % | -5.5 | -2.0 | -7.0 | 8.0 |
| Exchange effects % | -4.4 | 2.4 | -2.1 | 2.5 |
| Acquisitions % | 3.5 | 3.3 | 3.0 | 5.3 |
| Average number of employees | 2,803 | 2,401 | 2,625 | 2,454 |
¹ Excl. IFRS 16.
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
| Sweden | 291 | 290 | 1,178 | 1,188 |
| Rest of Nordic region | 248 | 257 | 1,085 | 1,046 |
| Rest of world | 837 | 926 | 3,351 | 3,752 |
| 1,376 | 1,473 | 5,614 | 5,986 | |
| Pro forma adjustment¹ | 108 | |||
| Trailing 12 month pro forma | 5,722 | |||
| ¹ Pro forma for completed acquisitions. | ||||
| 2020 | 2019 | 2020 | 2019 |
| (SEK m) | Q4 | Q4 | Full Year | Full Year |
|---|---|---|---|---|
| Commercial Ventilation | 1,046 | 1,177 | 4,319 | 4,778 |
| Residential | 140 | 115 | 544 | 476 |
| North America | 76 | 89 | 322 | 342 |
| UK | 166 | 152 | 664 | 662 |
| Eliminations | -52 | -60 | -235 | -272 |
| 1,376 | 1,473 | 5,614 | 5,986 |
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. These multiples have been calculated by comparing valuations of listed companies in comparable industries. Since there are variations in the listed companies' valuations these are reflected in the tables by valuing each business area in a range. Deductions are then made for the Group's net debt. The evaluation of comparable companies is based on the share price on the balance sheet date. Any price changes after the balance sheet date have not been taken into consideration. A more detailed description can be found on page 25 of Latour's Annual Report for 2019.
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 153 per share from SEK 136 at the start of the year. The net asset value thus increased by 13.7 per cent, compared against SIXRX which rose 14.8 per cent.
Developments in the stock market during the year have meant that most of the companies in the industrial operations' listed peer group have increased considerably in value, with the business areas' valuation multiples following suit. Latour values the holdings with a cautious approach and the increases in value of comparable companies are therefore not fully reflected in the industrial operations' valuation range.
| Valuation² | ||||||||
|---|---|---|---|---|---|---|---|---|
| Valuation² | Valuation² | SEK/share³ | ||||||
| SEK m | Net sales¹ | EBIT¹ | EBIT multiple | Range | Average | Range | ||
| Caljan | 1,176 | 207 | 17 – 21 | 3,519 – 4,347 |
3,933 | 6 | – | 7 |
| Hultafors Group | 3,641 | 561 | 12 – 16 | 6,732 – 8,976 |
7,854 | 11 | – | 14 |
| Latour Industries | 3,083 | 311 | 14 – 18 | 4,353 – 5,597 |
4,975 | 7 | – | 9 |
| Nord-Lock Group | 1,275 | 316 | 15 – 19 | 4,739 – 6,002 |
5,371 | 7 | – | 9 |
| Swegon | 5,722 | 727 | 15 – 19 | 10,906 – 13,815 | 12,360 | 17 | – | 22 |
| 14,897 | 2,122 | 30,249 – 38,737 | 47 | – | 61 | |||
| Industrial operations valuation, average | 34,493 | 54 | ||||||
| Listed shares (see table on page 10 for breakdown) | 68,065 | 106 | ||||||
| Latour Future Solutions | 40 | 0 | ||||||
| Unlisted part-owned holdings | ||||||||
| Neuffer⁴, 66.1 % | 149 | 0 | ||||||
| Oxeon⁴, 31.3 % | 18 | 0 | ||||||
| Other assets | ||||||||
| Short trading portfolio | 0 | 0 | ||||||
| Dilution effect of option programme | -128 | 0 | ||||||
| Consolidated net debt (excl IFRS 16) | -4,613 | -7 | ||||||
| Estimated value | 98,024 | 153 | ||||||
| (93 781 | – 102 268) | (147 – | 160) |
¹ Trailing 12 months for current company structure (proforma). EBIT is, as appropriate, reported before restructuring costs.
² EBIT and EV/sales recalculated taking into consideration the listed share price on 31 of December 2020 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 year, the value of the investment portfolio increased by 9.1 per cent when adjusted for portfolio changes and dividends, while the benchmark index (SIXRX) increased by 14.8 per cent. During the year, 2,590,000 shares in Fagerhult were acquired, giving Latour a 47.8 per cent stake in the share capital.
In May, 7.8 million shares in Tomra were sold for a consideration of SEK 2.5 billion. After the sale, Latour holds 21.1 per cent of outstanding shares in the company and remains its principal owner. The shareholding in Alimak has increased during the year to 29.6 per cent following acquisition of 210,000 shares.
| 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 | 131 | 2,098 | 29.7 | 29.6 |
| Assa Abloy ³ | 105,495,729 | 1,697 | 203 | 21,363 | 29.5 | 9.5 |
| Fagerhult | 84,708,480 | 1,899 | 46 | 3,854 | 48.1 | 47.8 |
| HMS Networks | 12,109,288 | 250 | 260 | 3,148 | 25.9 | 25.9 |
| Nederman | 10,538,487 | 306 | 141 | 1,486 | 30.0 | 30.0 |
| Securitas ³ | 39,732,600 | 1,081 | 133 | 5,275 | 29.6 | 10.9 |
| Sweco ³ ⁴ | 97,867,440 | 479 | 151 | 14,778 | 21.0 | 26.9 |
| Tomra ⁵ | 31,200,000 | 1,600 | 423 NOK | 12,592 | 21.1 | 21.1 |
| Troax | 18,060,000 | 397 | 192 | 3,471 | 30.2 | 30.1 |
| Total | 9,843 | 68,065 |
¹ All holdings are reported as associated companies in the balance sheet.
² The last price paid is used as the 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. 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
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 422,60 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 5,753 m (5,725 m). Profit after tax was SEK 5,324 m (5,310 m), which is equivalent to SEK 8.32 (8.33) per share. A write-down of the holding in Alimak negatively impacted the income statement by SEK -108 m, and capital gains from the sale of shares in Tomra had a positive impact of SEK 1,964 m. The business areas have availed themselves of different government COVID-19 support schemes, where this is applicable, but only to a relatively small extent. Latour has received a total of SEK 64 m, of which SEK 11 m in Sweden.
The Group's cash in hand and liquid investments reached SEK 4,033 m (1,029 m). Interest-bearing debt, excluding pension liabilities and lease liabilities, totalled SEK 8,778 m (8,433 m). The Group's net debt was SEK 5,273 m (8,095 m). Net debt, excluding lease liabilities, was SEK 4,613 m (7,478 m). The equity ratio was 86 (85) 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 10 billion at the Swedish Financial Supervisory Authority. In March, Latour issued two new bonds with a total value of SEK 2.5 billion. All in all, Latour has six outstanding bonds with a total value of SEK 6.4 billion.
In December, Fitch Ratings assigned Latour an "A" rating with a Stable Outlook.
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 604 m (251 m) was invested in property, plant and equipment, of which SEK 310 m (174 m) was machinery and equipment, SEK 13 m (17 m) was vehicles, and SEK 281 m (60 m) was buildings. Fixed assets in newly acquired companies account for SEK 127 m (77 m) of investments for the year.
The parent company's profit after financial items was SEK 3,328 m (1,376 m). The parent company's equity ratio was 66 (57) 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 at 31 December 2020 amounted to 639,379,500. At the end of the period, Latour holds 460,500 repurchased class B shares.
The total number of issued call options is 2,122,900, which give the right to purchase the same amount of shares.
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. In addition, the acquisitions of Vega S.R.L. for Latour Industries and Elsys for Bemsiq were completed in 2021.
The Board of Directors proposes an increased regular dividend of SEK 3.00 (1.25) per share. In absolute terms, this corresponds to a dividend payout of SEK 1,918 m.
The main risk to which the Group and the parent company are exposed is the risk attributable to adverse changes in the values of financial instruments, including a general decline in the stock market or in the value of an individual holding. This includes uncertainties relating to changes in exchange rates and interest rates. Latour has a well-diversified holding of shares, spread across 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 35 of Latour's 2019 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 2020 have not had any impact on the Group's or parent company's accounting as of 31 December 2020.
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 19 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 1986 to 2019 are available for viewing on Latour's website www.latour.se.
The Nomination Committee for the Annual General Meeting on 10 May 2021 comprises the following members:
Jan Svensson, Chairman (Förvaltnings AB Wasatornet including related entities), Eric Douglas (Wasatornet Holding AB including related entities), Fredrik Palmstierna (own holding including related entities) and Johan Nordström (Skirner AB).
The Nomination Committee can be contacted through Latour's website www.latour.se under Corporate Governance, Nomination Committee.
Gothenburg, 12 February 2021 Johan Hjertonsson President and CEO
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| SEK m | Q4 | Q4 | Full Year | Full Year |
| Net sales | 4,053 | 3,647 | 15,028 | 13,738 |
| Cost of goods sold | -2,472 | -2,219 | -9,151 | -8,301 |
| Gross profit | 1,581 | 1,428 | 5,877 | 5,437 |
| Sales costs | -567 | -612 | -2,254 | -2,269 |
| Administrative costs | -314 | -297 | -1,189 | -1,078 |
| Research and development costs | -112 | -88 | -406 | -329 |
| Other operating income | 39 | 26 | 134 | 184 |
| Other operating expenses | -52 | -93 | -105 | -126 |
| Operating profit | 575 | 364 | 2,057 | 1,819 |
| Income from interests in associates | 999 | 872 | 3,977 | 3,771 |
| Income from portfolio management | - | 164 | -8 | 218 |
| Management costs | -8 | -7 | -28 | -24 |
| Profit before financial items | 1,566 | 1,393 | 5,998 | 5,784 |
| Finance income | 22 | -33 | 31 | 38 |
| Finance expense | -142 | -34 | -276 | -97 |
| Profit after financial items | 1,446 | 1,326 | 5,753 | 5,725 |
| Taxes | -157 | -79 | -429 | -415 |
| Profit for the period | 1,289 | 1,247 | 5,324 | 5,310 |
| Attributable to: | ||||
| Parent company shareholders | 1,286 | 1,265 | 5,320 | 5,327 |
| Non-controlling interests | 3 | -18 | 4 | -17 |
| Earnings per share regarding profit attributable to parent company shareholders | ||||
| Basic share, SEK | 2.01 | 1.98 | 8.32 | 8.33 |
| Diluted share, SEK | 2.00 | 1.97 | 8.29 | 8.31 |
| Average number of basic shares outstanding | 639,379,500 | 639,282,500 | 639,338,951 | 639,213,788 |
| Average number of diluted shares outstanding | 641,502,400 | 641,613,000 | 641,434,414 | 641,357,640 |
| Number of outstanding shares | 639,379,500 | 639,282,500 | 639,379,500 | 639,282,500 |
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| SEK m | Q4 | Q4 | Full Year | Full Year |
| Profit for the period | 1,289 | 1,247 | 5,324 | 5,310 |
| Other comprehensive income: | ||||
| Items that will not be recycled to the income statement | ||||
| Restatement of net pension obligations | 3 | -15 | 3 | -15 |
| 3 | -15 | 3 | -15 | |
| Items that may subsequently be recycled to the income statement | ||||
| Change in translation reserve for the period | -531 | -203 | -571 | 77 |
| Change in fair value reserve for the period | - | -145 | - | -134 |
| Change in hedging reserve for the period | 167 | 68 | 125 | 69 |
| Change in associated companies' equity | -234 | 257 | -994 | 528 |
| -598 | -23 | -1,440 | 540 | |
| Other comprehensive income, net after tax | -595 | -38 | -1,437 | 525 |
| Comprehensive income for the period | 694 | 1,209 | 3,887 | 5,835 |
| Attributable to: | ||||
| Parent company shareholders | 694 | 1,225 | 3,886 | 5,850 |
| Non-controlling interests | - | -16 | 1 | -15 |
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| SEK m | Q4 | Q4 | Full Year | Full Year |
| Operating cash flows before movements in working capital | 591 | 494 | 2,120 | 1,864 |
| Movements in working capital | 379 | 201 | 215 | -57 |
| Operating cash flows | 970 | 695 | 2,335 | 1,807 |
| Acquisitions of subsidaries | -20 | -2,684 | -692 | -3,852 |
| Sale of subsidaries | - | - | - | - |
| Other investments | -146 | -95 | -530 | -228 |
| Portfolio management | 528 | -96 | 3,224 | 1,372 |
| Cash flow after investments | 1,332 | -2,180 | 4,337 | -901 |
| Financial payments | -795 | 2,349 | -1,235 | 1,150 |
| Cash flow for the period | 537 | 169 | 3,102 | 249 |
| SEK m | 2020/12/31 | 2019/12/31 |
|---|---|---|
| ASSETS | ||
| Goodwill | 10,063 | 9,913 |
| Other intangible assets | 241 | 272 |
| Property, plant and equipment | 2,072 | 1,669 |
| Financial assets | 20,440 | 20,466 |
| Inventories etc. | 2,127 | 2,111 |
| Current receivables | 3,110 | 3,142 |
| Cash and bank | 4,033 | 1,029 |
| Total assets | 42,086 | 38,602 |
| EQUITY AND LIABILITIES | ||
| Capital and reserves attributable to parent company shareholders | 29,067 | 26,010 |
| Non-controlling interests | 81 | 80 |
| Total equity | 29,148 | 26,090 |
| Inerest-bearing long-term liabilities | 7,509 | 7,977 |
| Non-interest-bearing long-term liabilities | 587 | 517 |
| Interest-bearing current liabilities | 2,016 | 1,195 |
| Non-interest-bearing current liabilities | 2,826 | 2,823 |
| Equity and liabilities | 42,086 | 38,602 |
| Share | Repurchased | Other | Profit brought | Non-controlling | ||
|---|---|---|---|---|---|---|
| SEK m | capital | treasury shares | reserves | forward | interests | Total |
| Opening balance 1 Jan 2019 | 133 | -60 | 432 | 21,263 | 95 | 21,863 |
| Total comprehensive income for the period | 10 | 5,840 | -15 | 5,835 | ||
| Issued call options | 8 | 8 | ||||
| Exercise of call options | 49 | -11 | 38 | |||
| Own shares repurchase | -56 | -56 | ||||
| Dividends | -1,598 | -1,598 | ||||
| Closing balance 31 December 2019 | 133 | -67 | 442 | 25,502 | 80 | 26,090 |
| Opening balance 1 Jan 2020 | 133 | -67 | 442 | 25,502 | 80 | 26,090 |
| Total comprehensive income for the period | -443 | 4,329 | 1 | 3,887 | ||
| Issued call options | 11 | 11 | ||||
| Exercise of call options | 79 | -25 | 54 | |||
| Own shares repurchase | -95 | -95 | ||||
| Dividends | -799 | -799 | ||||
| Closing balance 31 December 2020 | 133 | -83 | -1 | 29,018 | 81 | 29,148 |
| 2020/12/31 | 2019/12/31 | |
|---|---|---|
| Return on equity (%) | 19 | 22 |
| Return on total capital (%) | 15 | 17 |
| Equity ratio, incl IFRS 16 (%) | 69 | 68 |
| Equity ratio, excl IFRS 16 (%) | 70 | 69 |
| Adjusted equity ratio, incl IFRS 16 ¹ (%) | 86 | 85 |
| Adjusted equity ratio, excl IFRS 16 ¹ (%) | 86 | 86 |
| Adjusted equity ¹ (SEK m) | 77,245 | 71,398 |
| Surplus value in associated companies² (SEK m) | 48,097 | 45,308 |
| Net debt/equity ratio 1 (%) ³ | 7.1 | 11.3 |
| Net debt/equity ratio 2 (%) ⁴ | 5.3 | 9.4 |
| Listed share price (SEK) | 200 | 153 |
| Repurchased shares | 460,500 | 557,500 |
| Average number of repurchased shares | 501,049 | 626,212 |
| Average number of employees | 6,251 | 5,882 |
| Issued call options corresponds to number of shares | 2,122,900 | 2,330,500 |
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.
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| SEK m | Q4 | Q4 | Full Year | Full Year |
| Income from interests i Group companies | - | - | 499 | 440 |
| Income from interest in associates companies | 449 | - | 2,842 | 953 |
| Income from portfolio management | - | - | - | - |
| Management costs | -6 | -6 | -22 | -19 |
| Profit before financial items | 443 | -6 | 3,319 | 1,374 |
| Interest income and similar items | 10 | 10 | 44 | 21 |
| Interest expense and similar items | -16 | -6 | -35 | -19 |
| Profit after financial items | 437 | -2 | 3,328 | 1,376 |
| Taxes | - | - | - | - |
| Profit for the period | 437 | -2 | 3,328 | 1,376 |
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| SEK m | Q4 | Q4 | Full Year | Full Year |
| Profit for the period | 437 | -2 | 3,328 | 1,376 |
| Change in fair value reserve for the period | - | - | - | - |
| Total other comprehensive income | 0 | 0 | 0 | 0 |
| Comprehensive income for the period | 437 | -2 | 3,328 | 1,376 |
| SEK m | 2020/12/31 | 2019/12/31 |
|---|---|---|
| ASSETS | ||
| Financial assets | 12,385 | 11,157 |
| Long-term receivables from Group companies | 5,650 | 6,000 |
| Current receivables from Group companies | 16 | - |
| Other current liabilities | 12 | 13 |
| Cash and bank | 706 | - |
| Total assets | 18,769 | 17,170 |
| EQUITY AND LIABILITIES | ||
| Equity | 12,348 | 9,849 |
| Interese-bearing long-term lilabilities | 6,400 | 6,000 |
| Non-interest-bearing long-term liabilities | - | - |
| Interese-bearing current liabilities | - | 1,307 |
| Non-interest-bearing current liabilities | 21 | 14 |
| Equity and liabilities | 18,769 | 17,170 |
| SEK m | 2020/12/31 | 2019/12/31 |
|---|---|---|
| Amount at beginning of year | 9,849 | 10,081 |
| Total comprehensive income for the period | 3,328 | 1,376 |
| Issued call options | 11 | 8 |
| Exercise of call options | 54 | 39 |
| Repurchased treasury shares | -95 | -57 |
| Dividends | -799 | -1,598 |
| Amount at end of year | 12,348 | 9,849 |
| Industrial operations | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hultafors | Latour | Nord-Lock | Portfolio | |||||
| SEK m | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | ||||||||
| External sales | 1,176 | 3,641 | 3,078 | 1,275 | 5,613 | 245 | 15,028 | |
| Internal sales | 2 | 1 | 3 | |||||
| RESULT | ||||||||
| Operating profit | 207 | 561 | 312 | 316 | 721 | -60 | 2,057 | |
| Income from portfolio management | 3,941 | 3,941 | ||||||
| Finance income | 31 | |||||||
| Finance expense | -276 | |||||||
| Taxes | -429 | |||||||
| Profit for the period | 5,324 | |||||||
| OTHER DISCLOSURES | ||||||||
| Investments in: | ||||||||
| property, plant and equipment | 177 | 139 | 51 | 151 | 73 | 13 | 604 | |
| intangible assets | 6 | 313 | 502 | 1 | 81 | 5 | 908 | |
| Depreciation/amortisation | 13 | 41 | 62 | 37 | 86 | 185 | 424 |
| Industrial operations | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hultafors | Latour | Nord-Lock | Portfolio | |||||
| SEK m | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | ||||||||
| External sales | 113 | 2,895 | 3,074 | 1,448 | 5,986 | 222 | 13,738 | |
| Internal sales | 1 | 2 | 3 | |||||
| RESULTS | ||||||||
| Operating result | 20 | 412 | 267 | 411 | 717 | -8 | 1,819 | |
| Income from portfolio management | 3,957 | 3,957 | ||||||
| Finance income | 38 | |||||||
| Finance expense | -89 | |||||||
| Taxes | -415 | |||||||
| Profit for the period | 5,310 | |||||||
| OTHER DISCLOSURES | ||||||||
| Investments in: | ||||||||
| property, plant and equipment | 71 | 27 | 40 | 21 | 75 | 17 | 251 | |
| intangible assets | 2,369 | 879 | 143 | 2 | 57 | 3,450 | ||
| Depreciation/amortisation | 1 | 22 | 60 | 36 | 87 | 202 | 408 |
| SEK m | 2019/12/31 | Change in cash | Change in loans | Other changes | 2020/12/31 |
|---|---|---|---|---|---|
| Interest-bearing receivables | 48 | -26 | 22 | ||
| Swap | 0 | 200 | 200 | ||
| Cash | 1,029 | 2,952 | 52 | 4,033 | |
| Pensions provisions | -122 | 31 | -91 | ||
| Long-term liabilities | -7,855 | 744 | -309 | -7,420 | |
| Utilised bank overdraft facilities | -160 | 75 | -85 | ||
| Interest-bearing current liabilities | -1,035 | -911 | 14 | -1,932 | |
| Interest-bearing net debt | -8,095 | 2,952 | -92 | -38 | -5,273 |
| SEK m | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Net sales, SEK m | 15,028 | 13,738 | 11,785 | 9,930 | 8,344 |
| Operating profit, SEK m | 2,057 | 1,819 | 1,397 | 1,125 | 1,021 |
| Income from interest in associated companies, SEK m | 3,977 | 3,955 | 1,278 | 2,006 | 2,676 |
| Income from portfolio management, SEK m | -36 | 194 | 2 | -8 | 101 |
| Profit after finance items, SEK m | 5,753 | 5,725 | 2,646 | 3,069 | 3,754 |
| Earnings per share, SEK ¹ | 8.32 | 8.33 | 3.66 | 4.37 | 5.75 |
| Return on equity, % | 19 | 22 | 11 | 14 | 21 |
| Return on total capital, % | 15 | 17 | 9 | 13 | 17 |
| Adjusted equity ratio, % | 86 | 86 | 86 | 88 | 91 |
| Net debt/equity ratio, % | 7.1 | 11.3 | 9.2 | 7.9 | 3.0 |
¹ Comparative years recalculated with regard to the 4:1 share split carried out in June 2017.
| Contributed | ||||||||
|---|---|---|---|---|---|---|---|---|
| Transfer date | Country | Business area | Share | Revenues | EBITmber of employees | |||
| 22 January 2020 | S+S Regeltechnik GmbH | Germany | Latour Industries | 100% | 141 | 43 | 65 | |
| 28 January 2020 | Batec Mobility, S.L. | Spain | Latour Industries | 100% | 31 | -1 | 41 | |
| 30 January 2020 | Emma Safety Footwear B.V. | Netherlands | Hultafors Group | 80% | 126 | 8 | 140 | |
| 11 March 2020 | Waterloo Air Products | UK | Swegon | 100% | 70 | 4 | 140 | |
| 2 November 2020 | SLT Schanze Lufttechnik GmbH Germany | Swegon | 100% | 14 | -1 | 70 |
| Consolidated carrying amount | |
|---|---|
| Intangible assets | 36 |
| Property, plant and equipment | 124 |
| Inventories | 117 |
| Account receivable | 108 |
| Other receivable | 25 |
| Cash | 52 |
| Long-term liabilities | -252 |
| Current liabilities | -154 |
| Net indentifiable assets and liabilities | 59 |
| Group goodwill | 845 |
| Total purchase price | 904 |
| Additional purchase price | -159 |
| Cash settlement purchase price | 745 |
| Acquisition of non-cash items | -1 |
| Acquired cash | -52 |
| Effect of Group cash | 692 |
Emma Safety Footwear BV 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 22 m. Estimated additional purchase prices amounting to SEK 27 m for the acquisition of S+S, SEK 126 m for the acquisition of Emma, and SEK 13 m for the acquisition of Batec have been booked.
THE GROUP 31 Dec 2020
| 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 | 43² | 43 | ||
| Other long-term receivables | 27³ | 27 | ||
| Listed shares, trading | 0¹ | 0 | ||
| Unrealised gains, currency derivatives | 201² | 201 | ||
| Other current receivables | 2 618³ | 2,618 | ||
| Cash | 4 033³ | 4,033 | ||
| Total | 244 | 0 | 6,678 | 6,922 |
| FINANCIAL LIABILITIES | ||||
| Long-term loans | 6 905³ | 6,905 | ||
| Bank overdraft facilities | 86³ | 86 | ||
| Current loans | 1 787³ | 1,787 | ||
| Other liabilities | 1 650³ | 1,650 | ||
| Unrealised gains, currency derivatives | 1² | 1 | ||
| Total | 1 | 0 | 10,428 | 10,429 |
¹ Level 1 – valued at fair value based on quoted prices on an active market for identical assets.
² Level 2 – valued at fair value based on other observable inputs for assets and liabilities than quoted price included in level 1.
³ Level 3 – valued at fair value based on inputs for assets and liabilities unobservable to the market.
The basis of fair value for listed financial assets is the quoted market price at the balance sheet date. The basis of fair value for unlisted financial assets is determined using valuation techniques, such as recent transactions, the price of comparable instruments or discounted cash flows.
Hedging instruments consist of forward exchange contracts and interest rate and currency swaps and are included in level 2. Valuation at fair value of forward exchange contracts is based on levels established by the bank on an active market.
The fair value of accounts receivable and other receivables, current receivables, cash and other liquid funds, accounts payable and other liabilities as well as long-term liabilities are estimated to have the same value as their carrying amount. Market interest is not believed to materially deviate from the discount rate for interest-bearing long-term liabilities and therefore the carrying amount is considered in essence equal to the fair value.
The Group's valuation process is carried out by the Group finance and treasury department where a team works with valuation of the financial assets and liabilities held by the Group.
THE GROUP 31 Dec 2020
| 2020 | 2019 | |
|---|---|---|
| SEK m | Full Year | Full Year |
| Renenue from goods | 14,161 | 12,287 |
| Renenue from services | 867 | 1,451 |
| 15,028 | 13,738 | |
| Fix-price contract | 11,672 | 10,286 |
| Time-and-materials contracts | 3,356 | 3,452 |
| 15,028 | 13,738 | |
| Sweden | 2,552 | 2,613 |
| Nordics, excl. Sweden | 2,343 | 2,249 |
| Europe, excl. Nordics | 7,215 | 6,281 |
| Other markets | 2,918 | 2,595 |
| 15,028 | 13,738 |
Latour's revenues are derived from a variety of operations that are conducted in more than a hundred subsidiaries.
| 2020 | 2019 | 2018 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 |
| INCOME STATEMENT | |||||||||||||||
| Net sales | 15,028 | 4,053 | 3,692 | 3,605 | 3,678 | 13,738 | 3,647 | 3,339 | 3,567 | 3,185 | 11,785 | 3,268 | 2,903 | 3,024 | 2,590 |
| Cost of goods sold | -9,151 | -2,472 | -2,236 | -2,209 | -2,234 | -8,301 | -2,219 | -2,041 | -2,137 | -1,904 | -7,073 | -1,984 | -1,743 | -1,802 | -1,544 |
| Gross profit | 5,877 | 1,581 | 1,456 | 1,396 | 1,444 | 5,437 | 1,428 | 1,298 | 1,430 | 1,281 | 4,712 | 1,284 | 1,160 | 1,222 | 1,046 |
| Costs etc. for the operation | -3,820 | -1,006 | -860 | -935 | -1,019 | -3,618 | -1,064 | -855 | -831 | -868 | -3,315 | -899 | -786 | -851 | -779 |
| Operating profit | 2,057 | 575 | 596 | 461 | 425 | 1,819 | 364 | 443 | 599 | 413 | 1,397 | 385 | 374 | 371 | 267 |
| Total portfolio management | 3,941 | 991 | 836 | 2,469 | -355 | 3,965 | 1,029 | 350 | 1,209 | 1,377 | 1,280 | 321 | 473 | 106 | 380 |
| Profit before financial items | 5,998 | 1,566 | 1,432 | 2,930 | 70 | 5,784 | 1,393 | 793 | 1,808 | 1,790 | 2,677 | 706 | 847 | 477 | 647 |
| Net financial items | -245 | -120 | -40 | -121 | 46 | -59 | -67 | 31 | -24 | 1 | -31 | -12 | -14 | -14 | 9 |
| Profit after financial items | 5,753 | 1,446 | 1,382 | 2,809 | 116 | 5,725 | 1,326 | 824 | 1,784 | 1,791 | 2,646 | 694 | 833 | 463 | 656 |
| Taxes | -429 | -157 | 93 | -67 | -112 | -415 | -79 | -133 | -113 | -90 | -322 | -67 | -90 | -95 | -70 |
| Profit for the period | 5,324 | 1,289 | 1,289 | 2,742 | 4 | 5,310 | 1,247 | 691 | 1,671 | 1,701 | 2,324 | 627 | 743 | 368 | 586 |
| KEY RATIOS | |||||||||||||||
| Earnings per share, SEK | 8.32 | 2.01 | 2.02 | 4.29 | 0.01 | 8.33 | 1.98 | 1.08 | 2.61 | 2.66 | 3.66 | 1.00 | 1.16 | 0.58 | 0.92 |
| Cash flow for the period | 3,102 | 537 | 483 | 2,053 | 1,606 | 249 | 169 | 122 | -1,171 | 1,129 | 67 | 73 | 22 | 25 | -53 |
| Adjusted equity ratio, % | 86 | 86 | 85 | 82 | 80 | 86 | 86 | 87 | 88 | 87 | 86 | 86 | 87 | 87 | 88 |
| Adjusted equity | 77,245 | 77,245 | 77,112 | 67,933 | 59,626 | 71,398 | 71,398 | 65,229 | 66,481 | 62,720 | 52,395 | 52,395 | 58,490 | 56,880 | 54,105 |
| Net asset value | 98,024 | 98,024 | 94,584 | 81,418 | 72,863 | 86,974 | 86,974 | 81,027 | 81,276 | 76,054 | 63,980 | 63,980 | 69,105 | 66,841 | 63,016 |
| Net asset value per share, SEK | 153 | 153 | 148 | 127 | 114 | 136 | 136 | 127 | 127 | 119 | 100 | 100 | 108 | 105 | 99 |
| Listed share price, SEK | 200 | 200 | 211 | 169 | 142 | 153 | 153 | 130 | 137 | 125 | 112 | 112 | 111 | 97 | 95 |
| NET SALES | |||||||||||||||
| Caljan | 1,176 | 424 | 311 | 219 | 222 | 113 | 113 | - | - | - | - | - | - | - | - |
| Hultafors Group | 3,641 | 1,041 | 915 | 839 | 846 | 2,896 | 866 | 693 | 689 | 648 | 2,407 | 716 | 618 | 596 | 477 |
| Latour Industries | 3,081 | 855 | 725 | 689 | 812 | 3,079 | 810 | 739 | 790 | 740 | 2,758 | 747 | 660 | 700 | 652 |
| Nord-Lock Group | 1,275 | 294 | 300 | 324 | 357 | 1,448 | 330 | 340 | 395 | 384 | 1,309 | 333 | 332 | 341 | 303 |
| Swegon | 5,614 | 1,376 | 1,372 | 1,472 | 1,394 | 5,986 | 1,473 | 1,505 | 1,639 | 1,370 | 5,137 | 1,421 | 1,248 | 1,347 | 1,121 |
| 14,783 | 3,989 | 3,622 | 3,542 | 3,631 | 13,519 | 3,591 | 3,276 | 3,512 | 3,142 | 11,611 | 3,217 | 2,858 | 2,984 | 2,553 | |
| Other companies and eliminations | 245 | 64 | 70 | 63 | 47 | 219 | 56 | 63 | 55 | 43 | 174 | 51 | 45 | 40 | 37 |
| 15,028 | 4,053 | 3,692 | 3,605 | 3,678 | 13,738 | 3,647 | 3,339 | 3,567 | 3,185 | 11,785 | 3,268 | 2,903 | 3,024 | 2,590 | |
| OPERATING PROFIT | |||||||||||||||
| Caljan | 207 | 93 | 58 | 27 | 30 | 20 | 20 | - | - | - | - | - | - | - | - |
| Hultafors Group | 561 | 182 | 157 | 114 | 108 | 412 | 138 | 97 | 90 | 88 | 375 | 119 | 93 | 98 | 65 |
| Latour Industries | 312 | 105 | 87 | 48 | 71 | 257 | 60 | 74 | 67 | 56 | 191 | 55 | 57 | 48 | 31 |
| Nord-Lock Group | 316 | 52 | 83 | 84 | 97 | 411 | 71 | 94 | 124 | 121 | 397 | 89 | 106 | 108 | 94 |
| Swegon | 721 | 160 | 217 | 201 | 143 | 717 | 145 | 199 | 226 | 147 | 514 | 138 | 144 | 143 | 89 |
| 2,117 | 593 | 602 | 474 | 449 | 1,817 | 434 | 464 | 507 | 412 | 1,477 | 401 | 399 | 397 | 279 | |
| Gain/loss from sale/purchase of busi | -38 | -12 | 1 | -10 | -17 | 29 | -63 | -15 | 108 | -1 | -38 | -17 | -10 | -10 | -1 |
| Other companies and items | -22 | -6 | -4 | -7 | -8 | -27 | -7 | -6 | -17 | 2 | -42 | 1 | -15 | -16 | -11 |
| 2,057 | 575 | 599 | 457 | 424 | 1,819 | 364 | 443 | 598 | 413 | 1,397 | 385 | 374 | 371 | 267 | |
| OPERATING MARGIN (%) | |||||||||||||||
| Caljan | 17.6 | 21.8 | 18.7 | 12.2 | 13.3 | 17.4 | 17.4 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Hultafors Group | 15.4 | 17.5 | 17.1 | 13.6 | 12.8 | 14.2 | 15.9 | 13.9 | 13.3 | 13.6 | 15.6 | 16.6 | 15.1 | 13.6 | 13.6 |
| Latour Industries | 10.1 | 12.3 | 12.0 | 7.0 | 8.8 | 8.3 | 7.4 | 10.0 | 7.7 | 7.6 | 6.9 | 7.3 | 8.6 | 4.7 | 4.7 |
| Nord-Lock Group | 24.8 | 17.7 | 27.6 | 25.8 | 27.3 | 28.4 | 21.6 | 27.8 | 40.8 | 31.4 | 30.3 | 26.8 | 31.9 | 30.9 | 30.9 |
| Swegon | 12.8 | 11.6 | 15.8 | 13.7 | 10.2 | 12.0 | 9.9 | 13.2 | 10.7 | 10.7 | 10.0 | 9.7 | 11.5 | 8.0 | 8.0 |
| 14.3 | 14.8 | 16.6 | 13.4 | 12.4 | 13.4 | 12.1 | 14.2 | 13.1 | 13.1 | 12.7 | 12.5 | 14.0 | 10.9 | 10.9 |
Change in sales in comparable entities after adjustment for acquisitions and foreign exchange effects.
Earnings before interest, tax, depreciation of property, plant and equipment and amortisation of acquisition-related intangible assets, acquisition-related costs and income, and items impacting comparability.
Earnings before interest, tax, amortisation of acquisitionrelated intangible assets, acquisition-related costs and income, and items impacting comparability.
Earnings before interest, tax, amortisation of acquisitionrelated intangible assets, acquisition-related costs and income, and items impacting comparability, as a percentage of net sales.
Earnings before interest and tax.
Operating profit divided by net sales.
Total assets less cash and cash equivalents, other interestbearing assets and non-interest-bearing liabilities. Calculated on the average for the past 12 months.
Increase in revenue for the period as a percentage of the previous year's revenue.
Increase in revenue due to currency changes for the period as a percentage of the previous year's revenue.
Increase in revenue for the period, adjusted for acquisitions/disposals and exchange rate changes, as a percentage of the previous year's revenue adjusted for acquisitions and disposals.
Profit for the period divided by the number of outstanding shares in the period. Calculations: Jan-Dec 2020: 5,324/639,338,951 x 1000' = 8.32 Jan-Dec 2019: 5,310/639,213,788 x 1000' = 8.33
Calculations:
Jan-Dec 2020: 5,324/641,434,414 x 1000' = 8.29 Jan-Dec 2019: 5,310/641,357,640 x 1000' = 8.31
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 today at 10.00.
The number to call is +46 (0)8 505 583 68. The conference will be broadcast on the Internet. To follow the presentation, please visit our website, www.latour.se.
The interim report for the period January – March 2021 will be published on 29 April 2021 The Annual General Meeting will be held on 10 May 2021 The interim report for the period January – June 2021 will be published on 23 August 2021 The interim report for the period January – September 2021 will be published on 9 November 2021
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 12 February 2021 at 08.30 CET.
Investment AB Latour (publ) Corporate ID no. 556026–3237 J A Wettergrens gata 7, Box 336, SE-401 25 Gothenburg, Sweden Tel +46 (0)31 89 17 90 [email protected], www.latour.se
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