Quarterly Report • Nov 5, 2020
Quarterly Report
Open in ViewerOpens in native device viewer
INTERIM REPORT JANUARY – SEPTEMBER
On 2 November, Swegon acquired 100 per cent of the shares in the German company SLT Schanze Lufttechnik, which in 2019 generated net sales of EUR 10 m and had 70 employees.
1 The calculation of the net asset value on 4 November was based on the value of the investment portfolio at 1 p.m. on 4 November, and the same values as at 30 September 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 30 September 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 ongoing pandemic, we can report a strong set of results for the wholly-owned industrial operations. This is very gratifying and confirms that we own sustainable and well-managed companies. During the summer months, the markets have opened up to varying degrees and demand has gradually increased. Sales in the industrial operations grew organically towards the end of the quarter. We can now state that we are in a second wave, and there is a high risk of new shutdowns and thus restrictions on the economy. What is more, we have probably not seen the long-term consequences of the pandemic with regard to changes in behaviour and investment decisions. It may bring threats as well as opportunities.
In the third quarter, order intake fell 2 per cent when adjusted for acquisitions and foreign exchange effects, and invoiced sales were slightly below last year's level. Operating profit increased by 29 per cent in the quarter to SEK 602 m (466 m) with a strong operating margin of 16.6 (14.2) per cent. Adjusted for acquisitions and exchange rate movements, we outperformed the previous year's quarter by 12 per cent. Given the current situation, we are extremely pleased with the performance, much of which was due to our operations' keen cost awareness and ability to steer their organisations.
Our business areas have introduced significant measures to help mitigate the impact of Covid-19 and have taken advantage of the available government support, where appropriate, although to a relatively little extent and far less than in the previous quarter. The operations have been gradually resuming normal activities, but the pandemic is far from over and the companies are ready to adjust and adapt again to new conditions if necessary. We have observed various trends and impacts during the period, depending on which market and segment one looks at. Generally, it can be said that, as in the previous quarter, 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.
We stepped up our acquisition activities again during the quarter and are looking forward to what will hopefully be a busier fourth quarter in terms of transactions. Swegon's announcement that it had acquired SLT Schanze Lufttechnik in Germany earlier in the week was good news.
We are also maintaining our relentless focus on positioning ourselves for the future by investing continuously in various aspects of product development, sales and marketing. Furthermore, we currently have a high rate of investment in our factories. We remain committed to our focus on sustainability and digitalisation which is key to underpinning future growth. During the quarter, we launched several different initiatives to support the companies' within these areas and also implemented additional central sustainability targets that apply to all of the wholly-owned holdings.
The stock market has had a strong development during the quarter and this is reflected in our investment portfolio. Since the beginning of the year, the investment portfolio has increased by 9.0 per cent when adjusted for portfolio changes and dividends, while the benchmark index (SIXRX) increased by 8.2 per cent. The underlying growth in earnings of the companies has also been good considering the pandemic. Several companies have been hit by a sharp fall in organic sales, but have demonstrated considerable resilience and are posting strong operating profits. The net asset value in Latour increased in the same period by 9.8 per cent to SEK 148 per share."
Johan Hjertonsson President and Chief Executive Officer
In the third quarter, order intake grew by 10 per cent to SEK 3,431 m (3,133 m), with organic growth accounting for minus 2 per cent of this. Invoiced sales rose 11 per cent to SEK 3,622 m (3,275 m), which represents a 1 per cent decrease for comparable entities and when adjusted for foreign exchange effects. Operating profit in the wholly-owned industrial operations increased by 29 per cent in the quarter to SEK 602 m (466 m). The operating margin was 16.6 (14.2) per cent.
Order intake grew by 9 per cent in the 9-month period to SEK 10,954 m (10,028 m), of which organic growth was minus 5 per cent. Invoiced sales rose 9 per cent to SEK 10,794 m (9,924 m), of which organic growth was minus 5 per cent. Operating profit in the wholly-owned industrial operations increased by 9 per cent in the 9-month period to SEK 1,525 m (1,393 m). The operating margin was 14.1 (14.0) per cent.
The above figures only include subsidiaries of the whollyowned business areas. See the separate report on page 5.
There were no business acquisitions or sales in the whollyowned industrial operations in the third quarter.
Four transactions took place earlier on in the year. The acquisition of 100 per cent of the shares in 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 100 per cent of the shares in 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 electricpowered add-on 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's goal. 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 100 per cent of the shares in 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.
| Net sales | Operating profit | Operating margin % | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| SEK m | Q3 | Q3 | 9 mths | 9 mths | Q3 | Q3 | 9 mths | 9 mths | Q3 | Q3 | 9 mths | 9 mths |
| Caljan¹ | 311 | - | 752 | - | 58 | - | 114 | - | 18.7 | - | 15.2 | - |
| Hultafors Group | 915 | 693 | 2,600 | 2,030 | 157 | 97 | 379 | 275 | 17.1 | 13.9 | 14.6 | 13.5 |
| Latour Industries | 725 | 738 | 2,226 | 2,265 | 87 | 76 | 206 | 207 | 12.0 | 10.3 | 9.3 | 9.2 |
| Nord-Lock Group | 300 | 340 | 981 | 1,118 | 83 | 94 | 264 | 340 | 27.6 | 27.8 | 26.9 | 30.4 |
| Swegon | 1,372 | 1,505 | 4,238 | 4,513 | 217 | 199 | 561 | 571 | 15.8 | 13.2 | 13.2 | 12.7 |
| Eliminations | -1 | -1 | -3 | -2 | - | - | - | - | - | - | - | - |
| 3,622 | 3,275 | 10,794 | 9,924 | 602 | 466 | 1,524 | 1,393 | 16.6 | 14.2 | 14.1 | 14.0 | |
| Part-owned subsidiaries | 70 | 63 | 181 | 163 | 2 | 2 | 4 | 4 | 2.4 | 3.3 | 2.0 | 2.3 |
| 3,692 | 3,338 | 10,975 | 10,087 | 604 | 468 | 1,528 | 1,397 | 16.3 | 14.0 | 13.9 | 13.8 | |
| Gain/loss from sale/purchase of | ||||||||||||
| businesses | - | - | - | - | 1 | -15 | -26 | 92 | ||||
| Other companies and items | - | 1 | - | 4 | -6 | -10 | -23 | -36 | ||||
| 3,692 | 3,339 | 10,975 | 10,091 | 599 | 443 | 1,479 | 1,453 | |||||
| Effect IFRS 16 | - | - | - | - | -3 | - | 3 | 2 | ||||
| 3,692 | 3,339 | 10,975 | 10,091 | 596 | 443 | 1,482 | 1,455 |
| 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 | 2,487 | - | 5.4 | - | - | 3.9 | -0.1 | - | |
| Hultafors Group | 3,784 | 2,456 | 13.7 | 16.0 | 28.1 | 4.0 | -0.7 | 24.0 | |
| Latour Industries | 3,431 | 3,035 | 7.8 | 8.6 | -1.7 | -10.7 | -1.0 | 11.2 | |
| Nord-Lock Group | 1,193 | 1,092 | 28.1 | 39.3 | -12.3 | -11.7 | -0.6 | - | |
| Swegon | 3,271 | 3,262 | 21.6 | 21.7 | -6.1 | -7.4 | -1.3 | 2.8 | |
| Total | 14,166 | 9,845 | 13.8 | 18.2 | 8.8 | -5.4 | -0.9 | 16.0 |
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.
| 2020 2019* | 2020 | 2019 | 2019 Trailing | |||
|---|---|---|---|---|---|---|
| (MEUR) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Net sales | 29.8 | 23.1 | 71.2 | 68.5 | 92.2 | 94.9 |
| EBITDA | 5.8 | 3.9 | 12.0 | 10.4 | 14.1 | 15.6 |
| EBITDA¹ | 5.8 | 3.9 | 11.8 | 10.4 | 14.0 | 15.4 |
| EBITA¹ | 5.7 | 3.6 | 11.3 | 9.7 | 13.1 | 14.7 |
| EBIT¹ | 5.7 | 3.6 | 11.0 | 9.7 | 13.1 | 14.3 |
| EBITA %¹ | 19.2 | 15.5 | 15.9 | 14.2 | 14.2 | 15.5 |
| EBIT %¹ | 19.2 | 15.5 | 15.5 | 14.2 | 14.2 | 15.1 |
| Total growth % | 26.0 | 4.0 | ||||
| Organic % | 29.1 | 3.9 | ||||
| Exchange effects % | -2.5 | -0.1 | ||||
| Acquisitions % | - | - | ||||
| Average number of employees | 496 | 468 | 488 | 467 | 465 | |
| ¹ Excl. IFRS 16. |
* Pro forma
| 2020 2019* | 2020 | 2019 | 2019 Trailing | |||
|---|---|---|---|---|---|---|
| (MEUR) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Telescopics | 16.4 | 12.8 | 44.2 | 43.5 | 56.0 | 56.9 |
| Document Handling & Labelling | 2.1 | 4.6 | 4.5 | 7.1 | 9.0 | 6.2 |
| Depot Automation Solutions | 6.1 | 0.3 | 7.6 | 2.2 | 5.0 | 11.0 |
| Aftermarket | 4.9 | 4.9 | 15.0 | 15.0 | 22.0 | 21.0 |
| 29.5 | 22.6 | 71.3 | 67.7 | 92.0 | 95.0 |
*Pro forma
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Net sales | 915 | 693 | 2,600 | 2,030 | 2,896 | 3,466 |
| EBITDA | 172 | 109 | 426 | 311 | 462 | 576 |
| EBITDA¹ | 166 | 102 | 408 | 291 | 435 | 551 |
| EBITA¹ | 159 | 97 | 386 | 277 | 416 | 525 |
| EBIT¹ | 157 | 97 | 379 | 275 | 412 | 517 |
| EBITA %¹ | 17.4 | 14.1 | 14.9 | 13.7 | 14.4 | 15.2 |
| EBIT %¹ | 17.1 | 13.9 | 14.6 | 13.5 | 14.2 | 14.9 |
| Total growth % | 32.2 | 12.1 | 28.1 | 20.1 | 20.3 | |
| Organic % | 14.4 | 9.0 | 4.0 | 6.6 | 3.2 | |
| Exchange effects % | -3.7 | 2.5 | -0.7 | 3.1 | 3.2 | |
| Acquisitions % | 20.1 | 0.4 | 24.0 | 9.2 | 13.1 | |
| Average number of employees | 964 | 874 | 975 | 859 | 885 | |
| ¹ Excl. IFRS 16. |
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| PPE/Workwear | 502 | 382 | 1,441 | 1,151 | 1,660 | 1,957 |
| Hardware | 413 | 311 | 1,159 | 879 | 1,236 | 1,509 |
| 915 | 693 | 2,600 | 2,030 | 2,896 | 3,466 | |
| Pro forma adjustment¹ | 73 |
Trailing 12 month pro forma 3,539
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 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Net sales | 725 | 738 | 2,226 | 2,265 | 3,075 | 3,036 |
| EBITDA | 115 | 103 | 290 | 289 | 379 | 380 |
| EBITDA¹ | 102 | 91 | 252 | 250 | 327 | 329 |
| EBITA¹ | 91 | 80 | 219 | 220 | 285 | 283 |
| EBIT¹ | 87 | 76 | 206 | 207 | 267 | 266 |
| EBITA %¹ | 12.6 | 10.9 | 9.8 | 9.7 | 9.3 | 9.3 |
| EBIT %¹ | 12.0 | 10.3 | 9.3 | 9.2 | 8.7 | 8.8 |
| Total growth % | -1.8 | 11.9 | -1.7 | 13.8 | 12.4 | |
| Organic % | -9.3 | 3.8 | -10.7 | 5.6 | 3.8 | |
| Exchange effects % | -2.7 | 1.4 | -1.0 | 1.7 | 1.7 | |
| Acquisitions % | 11.2 | 6.3 | 11.2 | 6.0 | 6.5 | |
| Average number of employees | 1,607 | 1,448 | 1,562 | 1,459 | 1,465 | |
| ¹ Excl. IFRS 16. |
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Bemsiq | 166 | 114 | 537 | 361 | 497 | 673 |
| Aritco Group | 193 | 201 | 599 | 568 | 792 | 823 |
| Vimec | 118 | 136 | 303 | 382 | 541 | 462 |
| MS Group | 118 | 128 | 355 | 411 | 529 | 473 |
| LSAB | 90 | 114 | 326 | 406 | 533 | 454 |
| Densiq | 43 | 48 | 115 | 145 | 193 | 163 |
| Elimination | -5 | -2 | -8 | -7 | -10 | -11 |
| 725 | 738 | 2,226 | 2,265 | 3,075 | 3,036 | |
| Pro forma adjustment¹ | 74 | |||||
| Trailing 12 month pro forma | 3,110 |
¹ Pro forma for completed acquisitions.
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Net sales | 300 | 340 | 981 | 1,118 | 1,448 | 1,311 |
| EBITDA | 97 | 110 | 308 | 384 | 471 | 395 |
| EBITDA¹ | 92 | 103 | 290 | 366 | 446 | 371 |
| EBITA¹ | 85 | 97 | 271 | 347 | 420 | 345 |
| EBIT¹ | 83 | 94 | 264 | 340 | 411 | 335 |
| EBITA %¹ | 28.4 | 28.5 | 27.6 | 31.0 | 29.0 | 26.3 |
| EBIT %¹ | 27.6 | 27.8 | 26.9 | 30.4 | 28.4 | 25.6 |
| Total growth % | -11.8 | 2.6 | -12.3 | 14.6 | 10.7 | |
| Organic % | -6.3 | -1.6 | -11.7 | 7.9 | 4.4 | |
| Exchange effects % | -5.9 | 4.1 | -0.6 | 5.5 | 5.4 | |
| Acquisitions % | - | 0.3 | - | 0.7 | 0.5 | |
| Average number of employees | 537 | 568 | 563 | 588 | 594 | |
| ¹ Excl. IFRS 16. |
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| EMEA | 130 | 167 | 432 | 512 | 652 | 572 |
| Americas | 80 | 89 | 259 | 292 | 394 | 361 |
| Asia Pacific | 90 | 84 | 290 | 314 | 402 | 378 |
| 300 | 340 | 981 | 1,118 | 1,448 | 1,311 | |
| Pro forma adjustment¹ | - | |||||
| Trailing 12 month pro forma | 1,311 |
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.
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Net sales | 1,372 | 1,505 | 4,238 | 4,513 | 5,986 | 5,711 |
| EBITDA | 251 | 241 | 669 | 692 | 875 | 851 |
| EBITDA¹ | 238 | 222 | 625 | 640 | 804 | 790 |
| EBITA¹ | 221 | 203 | 572 | 584 | 733 | 721 |
| EBIT¹ | 217 | 199 | 561 | 571 | 717 | 706 |
| EBITA %¹ | 16.1 | 13.5 | 13.5 | 12.9 | 12.2 | 12.6 |
| EBIT %¹ | 15.8 | 13.2 | 13.2 | 12.7 | 12.0 | 12.4 |
| Total growth % | -8.8 | 20.6 | -6.1 | 21.5 | 16.5 | |
| Organic % | -8.0 | 9.8 | -7.4 | 11.7 | 8.0 | |
| Exchange effects % | -3.8 | 2.0 | -1.3 | 2.5 | 2.5 | |
| Acquisitions % | 2.9 | 7.6 | 2.8 | 6.1 | 5.3 | |
| Average number of employees | 2,467 | 2,473 | 2,565 | 2,472 | 2,454 | |
| ¹ Excl. IFRS 16. |
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
|---|---|---|---|---|---|---|
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Sweden | 253 | 266 | 887 | 899 | 1,188 | 1,176 |
| Rest of Nordic region | 272 | 255 | 837 | 790 | 1,046 | 1,094 |
| Rest of world | 847 | 984 | 2,514 | 2,824 | 3,752 | 3,441 |
| 1,372 | 1,505 | 4,238 | 4,513 | 5,986 | 5,711 | |
| Pro forma adjustment¹ | 61 | |||||
| Trailing 12 month pro forma | 5,772 | |||||
| ¹ Pro forma for completed acquisitions. | ||||||
| 2020 | 2019 | 2020 | 2019 | 2019 | Trailing | |
| (SEK m) | Q3 | Q3 | 9 mths | 9 mths Full Year | 12 mths | |
| Commercial Ventilation | 1,052 | 1,197 | 3,274 | 3,602 | 4,778 | 4,450 |
| Residential | 127 | 118 | 404 | 361 | 476 | 519 |
| North America | 88 | 84 | 245 | 253 | 342 | 334 |
| UK | 171 | 175 | 498 | 510 | 662 | 650 |
Eliminations -66 -69 -183 -213 -272 -242
1,372 1,505 4,238 4,513 5,986 5,711
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.
The net asset value increased in the 9-month period to SEK 148 per share from SEK 136 at the start of the year. The net asset value thus increased by 9.8 per cent, while the SIXRX benchmark increased by 8.2 per cent.
The stock market development in the last quarter 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 value 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.
| SEK m | Net sales¹ | EBIT¹ | EBIT multiple | Valuation² Range |
Valuation² Average |
Valuation² SEK/share³ Range |
||
|---|---|---|---|---|---|---|---|---|
| Caljan | 1,004 | 150 | 17 – 21 | 2,548 – 3,147 |
2,847 | 4 | – | 5 |
| Hultafors Group | 3,539 | 528 | 12 – 16 | 6,336 – 8,448 |
7,392 | 10 | – | 13 |
| Latour Industries | 3,110 | 281 | 14 – 18 | 3,930 – 5,053 |
4,492 | 6 | – | 8 |
| Nord-Lock Group | 1,311 | 335 | 14 – 18 | 4,692 – 6,032 |
5,362 | 7 | – | 9 |
| Swegon | 5,772 | 708 | 15 – 19 | 10,626 – 13,460 | 12,043 | 17 | – | 21 |
| 14,736 | 2,002 | 28,132 – 36,140 | 44 | – | 56 | |||
| Industrial operations valuation, average | 32,136 | 50 | ||||||
| Listed shares (see table on page 10 for breakdown) | 68,424 | 107 | ||||||
| Unlisted part-owned holdings Neuffer⁴, 66.1 % Oxeon⁴, 31.3 % |
149 18 |
0 0 |
||||||
| Other assets Short trading portfolio Dilution effect of option programme |
0 -143 |
0 0 |
||||||
| Consolidated net debt (excl IFRS 16) | -5,999 | -9 | ||||||
| Estimated value | 94,585 | 148 | ||||||
| (90 580 – 98 589) |
(142 – | 154) |
¹ Trailing 12 months for current company structure (proforma). EBIT is, as appropriate, reported before restructuring costs.
² EBIT and EV/sales recalculated taking into consideration the listed share price on 30 of September 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.
The value of the investment portfolio increased by 9.0 per cent in the 9-month period when adjusted for portfolio changes and dividends, while the benchmark index (SIXRX) increased by 8.2 per cent. In the third quarter, 1,000,000 shares in Fagerhult were acquired. Earlier this year, 2,560,000 shares in Fagerhult were acquired. The resulting ownership stake at the end of the period is 47.8 per cent.
In the second quarter, 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 increased earlier in 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 | 122 | 1,954 | 29.7 | 29.6 |
| Assa Abloy ³ | 105,495,729 | 1,697 | 210 | 22,165 | 29.5 | 9.5 |
| Fagerhult | 84,708,480 | 1,899 | 44 | 3,693 | 48.1 | 47.8 |
| HMS Networks | 12,109,288 | 250 | 206 | 2,488 | 25.9 | 25.9 |
| Nederman | 10,538,487 | 306 | 138 | 1,449 | 30.0 | 30.0 |
| Securitas ³ | 39,732,600 | 1,081 | 137 | 5,455 | 29.6 | 10.9 |
| Sweco ³ ⁴ | 32,622,480 | 445 | 498 | 16,239 | 21.3 | 26.9 |
| Tomra ⁵ | 31,200,000 | 1,600 | 402 NOK | 11,931 | 21.1 | 21.1 |
| Troax | 18,060,000 | 397 | 169 | 3,049 | 30.2 | 30.1 |
| Total | 9,809 | 68,423 |
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 402,10 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 4,307 m (4,399 m). Profit after tax was SEK 4,035 m (4,063 m), which is equivalent to SEK 6.31 (6.35) per share. The income statement has been impacted negatively by SEK -243 m due to a write-down of the value of the holding in Alimak, and positively by a capital gain from the sale of shares in Tomra of SEK 1,976 m. The business areas have availed themselves of government support, due to Covid-19, where applicable, but only to a relatively small extent. Latour have received a total of SEK 69 m, of which SEK 12 m in Sweden.
The Group's cash in hand and liquid investments reached SEK 3,575 m (1,029 m). Interest-bearing debt, excluding pension liabilities and lease liabilities, totalled SEK 9,959 m (5,913 m). The Group's net debt was SEK 6,461 m (5,913 m). Net debt, excluding lease liabilities, was SEK 5,999 m (5,268 m). The equity ratio was 85 (86) per cent calculated on reported equity in relation to total assets, including undisclosed surpluses in associated companies.
In the first quarter, Latour updated the base prospectus for its existing MTN programme and, at the same time, increased the framework amount to SEK 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 seven outstanding bonds with a total value of SEK 7 billion.
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 385 m (98 m) was invested in property, plant and equipment, of which SEK 189 m (79 m) was machinery and equipment, SEK 13 m (13 m) was vehicles, and SEK 183 m (6 m) was buildings. Fixed assets in newly acquired companies account for SEK 129 m (9 m) of investments for the year.
The parent company's profit after financial items was SEK 2,891 m (1,378 m). The parent company's equity ratio was 63 (66) per cent.
The number of class A shares issued is 47,641,048 and the number of class B shares is 592,198,952. Not including repurchased shares, the number of outstanding shares at 30 September 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 2 November, Swegon acquired 100 per cent of the shares in the German company SLT Schanze Lufttechnik.
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 30 September 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 20 of this report and in Latour's latest Annual Report. For an explanation of how the financial performance measures have been calculated for the current and prior periods, please see the table in this report and Latour's latest Annual Report.
The Annual Reports for 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, 5 November 2020 Johan Hjertonsson President and CEO
Investmentaktiebolaget Latour, Corporate ID no. 556026-3237
We have conducted a review of the condensed financial statements for the interim period (interim report) for Investmentaktiebolaget Latour as at 30 September 2020 and the nine-month period ending on that date. The Board of Directors and the Chief Executive Officer 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 Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing practice.
The review procedures that are undertaken 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, for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and for the parent company in accordance with the Swedish Annual Accounts Act.
Gothenburg, 5 November 2020
Ernst & Young AB
Staffan Landén Authorised Public Accountant
| 2020 | 2019 | 2020 | 2019 | 12 mths Oct-Sep | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q3 | Q3 | 9 mths | 9 mths | 2019/2020 | 2019 |
| Net sales | 3,692 | 3,339 | 10,975 | 10,091 | 14,622 | 13,738 |
| Cost of goods sold | -2,236 | -2,041 | -6,679 | -6,082 | -8,898 | -8,301 |
| Gross profit | 1,456 | 1,298 | 4,296 | 4,009 | 5,724 | 5,437 |
| Sales costs | -535 | -535 | -1,687 | -1,657 | -2,299 | -2,269 |
| Administrative costs | -260 | -247 | -875 | -781 | -1,172 | -1,078 |
| Research and development costs | -89 | -70 | -294 | -241 | -382 | -329 |
| Other operating income | 25 | 17 | 95 | 158 | 121 | 184 |
| Other operating expenses | -1 | -20 | -53 | -33 | -146 | -126 |
| Operating profit | 596 | 443 | 1,482 | 1,455 | 1,846 | 1,819 |
| Income from interests in associates | 844 | 357 | 2,978 | 2,925 | 3,824 | 3,771 |
| Income from portfolio management | -1 | -2 | -8 | 28 | 182 | 218 |
| Management costs | -7 | -5 | -20 | -17 | -27 | -24 |
| Profit before financial items | 1,432 | 793 | 4,432 | 4,391 | 5,825 | 5,784 |
| Finance income | -5 | 48 | 9 | 71 | -24 | 38 |
| Finance expense | -45 | -17 | -134 | -63 | -168 | -97 |
| Profit after financial items | 1,382 | 824 | 4,307 | 4,399 | 5,633 | 5,725 |
| Taxes | -93 | -133 | -272 | -336 | -351 | -415 |
| Profit for the period | 1,289 | 691 | 4,035 | 4,063 | 5,282 | 5,310 |
| Attributable to: | ||||||
| Parent company shareholders | 1,289 | 691 | 4,034 | 4,062 | 5,299 | 5,327 |
| Non-controlling interests | - | - | 1 | 1 | -17 | -17 |
| Earnings per share regarding profit attributable to parent company | ||||||
| shareholders | ||||||
| Basic share, SEK | 2.02 | 1.08 | 6.31 | 6.35 | 8.29 | 8.33 |
| Diluted share, SEK | 2.01 | 1.08 | 6.29 | 6.33 | 8.26 | 8.31 |
| Average number of basic shares outstanding | 639,379,500 | 639,282,500 | 639,325,336 | 639,190,632 | 639,314,568 | 639,213,788 |
| Average number of diluted shares outstanding | 641,462,215 | 641,030,500 | 641,411,586 | 641,271,584 | 641,462,215 | 641,357,640 |
| Number of outstanding shares | 639,379,500 | 639,282,500 | 639,379,500 | 639,282,500 | 639,379,500 | 639,282,500 |
| 2020 | 2019 | 2020 | 2019 | 12 mths Oct-Sep | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q3 | Q3 | 9 mths | 9 mths | 2019/2020 | 2019 |
| Profit for the period | 1,289 | 691 | 4,035 | 4,063 | 5,282 | 5,310 |
| Other comprehensive income: | ||||||
| Items that will not be recycled to the income statement | ||||||
| Restatement of net pension obligations | - | - | - | - | -15 | -15 |
| 0 | 0 | 0 | 0 | -15 | -15 | |
| Items that may subsequently be recycled to the income statement | ||||||
| Change in translation reserve for the period | -8 | 117 | -40 | 280 | -243 | 77 |
| Change in fair value reserve for the period | - | -12 | - | 11 | -145 | -134 |
| Change in hedging reserve for the period | -32 | 2 | -42 | 1 | 26 | 69 |
| Change in associated companies' equity | -766 | -1 | -760 | 271 | -503 | 528 |
| -806 | 106 | -842 | 563 | -865 | 540 | |
| Other comprehensive income, net after tax | -806 | 106 | -842 | 563 | -880 | 525 |
| Comprehensive income for the period | 483 | 797 | 3,193 | 4,626 | 4,402 | 5,835 |
| Attributable to: | ||||||
| Parent company shareholders | 483 | 797 | 3,192 | 4,625 | 4,417 | 5,850 |
| Non-controlling interests | - | - | 1 | 1 | -15 | -15 |
| 2020 | 2019 | 2020 | 2019 | 12 mths Oct-Sep | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q3 | Q3 | 9 mths | 9 mths | 2019/2020 | 2019 |
| Operating cash flows before movements in working capital | 625 | 430 | 1,529 | 1,370 | 2,023 | 1,864 |
| Movements in working capital | -72 | 35 | -164 | -258 | 37 | -57 |
| Operating cash flows | 553 | 465 | 1,365 | 1,112 | 2,060 | 1,807 |
| Acquisitions of subsidaries | 125 | -1,106 | -672 | -1,168 | -3,356 | -3,852 |
| Other investments | -202 | -44 | -384 | -133 | -479 | -228 |
| Portfolio management | -38 | 38 | 2,696 | 1,468 | 2,600 | 1,372 |
| Cash flow after investments | 438 | -647 | 3,005 | 1,279 | 825 | -901 |
| Financial payments | -1,532 | 769 | -440 | -1,199 | 1,909 | 1,150 |
| Cash flow for the period | -1,094 | 122 | 2,565 | 80 | 2,734 | 249 |
| SEK m | 2020/09/30 | 2019/09/30 | 2019/12/31 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 10,726 | 7,810 | 9,913 |
| Other intangible assets | 247 | 222 | 272 |
| Property, plant and equipment¹ | 1,845 | 1,633 | 1,669 |
| Financial assets | 20,021 | 19,325 | 20,466 |
| Inventories etc. | 2,347 | 2,105 | 2,111 |
| Current receivables | 3,503 | 2,988 | 3,142 |
| Cash and bank | 3,575 | 891 | 1,029 |
| Total assets | 42,264 | 34,974 | 38,602 |
| EQUITY AND LIABILITIES | |||
| Capital and reserves attributable to parent company shareholders | 28,372 | 24,781 | 26,010 |
| Non-controlling interests | 82 | 100 | 80 |
| Total equity | 28,454 | 24,881 | 26,090 |
| Inerest-bearing long-term liabilities | 7,987 | 6,064 | 7,977 |
| Non-interest-bearing long-term liabilities | 524 | 433 | 517 |
| Interest-bearing current liabilities | 2,069 | 774 | 1,195 |
| Non-interest-bearing current liabilities | 3,230 | 2,822 | 2,823 |
| Equity and liabilities | 42,264 | 34,974 | 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 | -83 | 3,274 | 2 | 3,193 | ||
| Exercise of call options | 79 | -25 | 54 | |||
| Own shares repurchase | -95 | -95 | ||||
| Dividends | -799 | -799 | ||||
| Closing balance 30 September 2020 | 133 | -83 | 359 | 27,963 | 82 | 28,454 |
| 2020/09/30 | 2019/09/30 | 2019/12/31 | |
|---|---|---|---|
| Return on equity (%) | 20 | 23 | 22 |
| Return on total capital (%) | 15 | 18 | 15 |
| Equity ratio, incl IFRS 16 (%) | 67 | 71 | 68 |
| Equity ratio, excl IFRS 16 (%) | 68 | 72 | 69 |
| Adjusted equity ratio, incl IFRS 16 ¹ (%) | 85 | 87 | 85 |
| Adjusted equity ratio, excl IFRS 16 ¹ (%) | 85 | 87 | 86 |
| Adjusted equity ¹ (SEK m) | 77,130 | 65,229 | 71,398 |
| Surplus value in associated companies² (SEK m) | 48,658 | 40,348 | 45,308 |
| Net debt/equity ratio 1 (%) ³ | 8.4 | 9.1 | 11.3 |
| Net debt/equity ratio 2 (%) ⁴ | 6.4 | 6.9 | 9.4 |
| Listed share price (SEK) | 211 | 130 | 153 |
| Repurchased shares | 460,500 | 557,500 | 557,500 |
| Average number of repurchased shares | 514,664 | 649,368 | 626,212 |
| Average number of employees | 6,209 | 5,441 | 5,882 |
| Issued call options corresponds to number of shares | 2,122,900 | 2,330,500 | 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 | 12 mths Oct-Sep | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q3 | Q3 | 9 mths | 9 mths | 2019/2020 | 2019 |
| Income from interests i Group companies | - | - | 499 | 440 | 499 | 440 |
| Income from interest in associates companies | 12 | - | 2,393 | 953 | 2,393 | 953 |
| Income from portfolio management | - | - | - | - | - | - |
| Management costs | -6 | -5 | -16 | -13 | -22 | -19 |
| Profit before financial items | 6 | -5 | 2,876 | 1,380 | 2,870 | 1,374 |
| Interest income and similar items | 11 | 4 | 34 | 11 | 44 | 21 |
| Interest expense and similar items | -1 | -6 | -19 | -13 | -25 | -19 |
| Profit after financial items | 16 | -7 | 2,891 | 1,378 | 2,889 | 1,376 |
| Taxes | - | - | - | - | - | - |
| Profit for the period | 16 | -7 | 2,891 | 1,378 | 2,889 | 1,376 |
| 2020 | 2019 | 2020 | 2019 | 12 mths Oct-Sep | Full Year | |
|---|---|---|---|---|---|---|
| SEK m | Q3 | Q3 | 9 mths | 9 mths | 2019/2020 | 2019 |
| Profit for the period | 16 | -7 | 2,891 | 1,378 | 2,889 | 1,376 |
| Change in fair value reserve for the period | - | - | - | - | - | - |
| Total other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 |
| Comprehensive income for the period | 16 | -7 | 2,891 | 1,378 | 2,889 | 1,376 |
| SEK m | 2020/09/30 | 2019/09/30 | 2019/12/31 |
|---|---|---|---|
| ASSETS | |||
| Financial assets | 10,886 | 10,937 | 11,157 |
| Long-term receivables from Group companies | 6,250 | 4,000 | 6,000 |
| Current receivables from Group companies | 1,760 | - | - |
| Other current liabilities | 19 | 8 | 13 |
| Cash and bank | 6 | - | - |
| Total assets | 18,921 | 14,945 | 17,170 |
| EQUITY AND LIABILITIES | |||
| Equity | 11,911 | 9,851 | 9,849 |
| Interese-bearing long-term lilabilities | 7,000 | 4,003 | 6,000 |
| Non-interest-bearing long-term liabilities | - | - | - |
| Interese-bearing current liabilities | - | 1,082 | 1,307 |
| Non-interest-bearing current liabilities | 10 | 9 | 14 |
| Equity and liabilities | 18,921 | 14,945 | 17,170 |
| SEK m | 2020/09/30 | 2019/09/30 | 2019/12/31 |
|---|---|---|---|
| Amount at beginning of year | 9,849 | 10,081 | 10,081 |
| Total comprehensive income for the period | 2,891 | 1,378 | 1,376 |
| Issued call options | 11 | 8 | 8 |
| Exercise of call options | 54 | 39 | 39 |
| Repurchased treasury shares | -95 | -57 | -57 |
| Dividends | -799 | -1,598 | -1,598 |
| Amount at end of year | 11,911 | 9,851 | 9,849 |
| Industrial operations | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hultafors | Latour | Nord-Lock | Portfolio | |||||
| SEK m | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | ||||||||
| External sales | 752 | 2,600 | 2,224 | 981 | 4,237 | 181 | 10,975 | |
| Internal sales | 2 | 1 | 3 | |||||
| RESULT | ||||||||
| Operating profit | 114 | 379 | 206 | 264 | 561 | -42 | 1,482 | |
| Income from portfolio management | 2,950 | 2,950 | ||||||
| Finance income | 9 | |||||||
| Finance expense | -134 | |||||||
| Taxes | -272 | |||||||
| Profit for the period | 4,035 | |||||||
| OTHER DISCLOSURES | ||||||||
| Investments in: | ||||||||
| property, plant and equipment | 144 | 114 | 36 | 35 | 42 | 14 | 385 | |
| intangible assets | 8 | 303 | 508 | 1 | 69 | 889 | ||
| Depreciation/amortisation | 10 | 29 | 45 | 26 | 64 | 135 | 309 |
| Industrial operations | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hultafors | Latour | Nord-Lock | Portfolio | |||||
| SEK m | Caljan | Group | Industries | Group | Swegon | Other | management | Total |
| INCOME | ||||||||
| External sales | - | 2,030 | 2,263 | 1,118 | 4,513 | 167 | 10,091 | |
| Internal sales | 2 | 2 | ||||||
| RESULTS | ||||||||
| Operating result | - | 274 | 207 | 340 | 571 | 63 | 1,455 | |
| Income from portfolio management | 2,936 | 2,936 | ||||||
| Finance income | 71 | |||||||
| Finance expense | -63 | |||||||
| Taxes | -336 | |||||||
| Profit for the period | 4,063 | |||||||
| OTHER DISCLOSURES | ||||||||
| Investments in: | ||||||||
| property, plant and equipment | - | 12 | 34 | 14 | 25 | 13 | 98 | |
| intangible assets | - | 874 | 95 | 1 | 52 | 1,022 | ||
| Depreciation/amortisation | - | 17 | 43 | 26 | 68 | 16 | 170 |
| SEK m | 2019/12/31 | Change in cash | Change in loans | Other changes | 2020/09/30 |
|---|---|---|---|---|---|
| Interest-bearing receivables | 48 | -28 | 20 | ||
| Cash | 1,029 | 2,503 | 43 | 3,575 | |
| Pensions provisions | -122 | 25 | -97 | ||
| Long-term liabilities | -7,855 | 387 | -422 | -7,890 | |
| Utilised bank overdraft facilities | -160 | 51 | -109 | ||
| Interest-bearing current liabilities | -1,035 | -925 | -1,960 | ||
| Interest-bearing net debt | -8,095 | 2,503 | -487 | -382 | -6,461 |
| SEK m | Oct-Sep 2019/2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Net sales, SEK m | 14,622 | 13,738 | 11,785 | 9,930 | 8,344 |
| Operating profit, SEK m | 1,846 | 1,819 | 1,397 | 1,125 | 1,021 |
| Income from interest in associated companies, SEK m | 3,824 | 3,955 | 1,278 | 2,006 | 2,676 |
| Income from portfolio management, SEK m | 155 | 194 | 2 | -8 | 101 |
| Profit after finance items, SEK m | 5,652 | 5,725 | 2,646 | 3,069 | 3,754 |
| Earnings per share, SEK ¹ | 8 | 8 | 4 | 4 | 6 |
| Return on equity, % | 19 | 22 | 11 | 14 | 21 |
| Return on total capital, % | 15 | 17 | 9 | 13 | 17 |
| Adjusted equity ratio, % | 84 | 86 | 86 | 88 | 91 |
| Net debt/equity ratio, % | 9 | 11 | 9 | 8 | 3 |
| Listed share price, SEK ¹ | 211 | 153 | 112 | 101 | 86 |
¹ Comparative years recalculated with regard to the 4:1 share split carried out in June 2017.
Specification of acquisitions
| 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 | Swegon | 100% | 31 | -1 | 41 | |
| 30 January 2020 | Emma Safety Footwear B.V. | Netherlands | Latour Industries | 80% | 126 | 8 | 140 | |
| 11 March 2020 | Waterloo Air Products | UK | Hultafors Group | 100% | 70 | 4 | 140 |
Assets and liabilities in acquisitions
| Consolidated carrying amount | |
|---|---|
| Intangible assets | 36 |
| Property, plant and equipment | 122 |
| Inventories | 107 |
| Account receivable | 97 |
| Other receivable | 24 |
| Cash | 43 |
| Long-term liabilities | -168 |
| Current liabilities | -136 |
| Net indentifiable assets and liabilities | 211 |
| Group goodwill | 842 |
| Total purchase price | 1,053 |
| Additional purchase price | -254 |
| Cash settlement purchase price | 799 |
| Acquisition of non-cash items | -84 |
| Acquired cash | -43 |
| Effect of Group cash | 672 |
Emma Safety Footwear BV will be fully consolidated into the Group as there is an agreement on the acquisition of the remaining outstanding shares.
All acquisitions have been made to strengthen and develop existing operations within the Latour Group. 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 20 m. Estimated additional purchase prices have been booked for the acquisitions of S+S with SEK 27 m, Emma with SEK 126 m and Batec with SEK 13 m.
THE GROUP 30 Sept 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 | 3² | 3 | ||
| Other long-term receivables | 23³ | 23 | ||
| Listed shares, trading | 0¹ | 0 | ||
| Unrealised gains, currency derivatives | 32² | 32 | ||
| Other current receivables | 3 041³ | 3,041 | ||
| Cash | 3 575³ | 3,575 | ||
| Total | 35 | 0 | 6,639 | 6,674 |
| FINANCIAL LIABILITIES | ||||
| Long-term loans | 7 543³ | 7,543 | ||
| Bank overdraft facilities | 109³ | 109 | ||
| Current loans | 1 827³ | 1,827 | ||
| Other liabilities | 1 890³ | 1,890 | ||
| Unrealised gains, currency derivatives | 5² | 5 | ||
| Total | 5 | 0 | 11,369 | 11,374 |
¹ Level 1 – valued at fair value based on quoted prices on an active market for identical assets.
² Level 2 – valued at fair value based on other observable inputs for assets and liabilities than quoted price included in level 1.
³ Level 3 – valued at fair value based on inputs for assets and liabilities unobservable to the market.
The basis of fair value for listed financial assets is the quoted market price at the balance sheet date. The basis of fair value for unlisted financial assets is determined using valuation techniques, such as recent transactions, the price of comparable instruments or discounted cash flows.
Hedging instruments consist of forward exchange contracts and interest rate and currency swaps and are included in level 2. Valuation at fair value of forward exchange contracts is based on levels established by the bank on an active market.
The fair value of accounts receivable and other receivables, current receivables, cash and other liquid funds, accounts payable and other liabilities as well as long-term liabilities are estimated to have the same value as their carrying amount. Market interest is not believed to materially deviate from the discount rate for interest-bearing long-term liabilities and therefore the carrying amount is considered in essence equal to the fair value.
The Group's valuation process is carried out by the Group finance and treasury department where a team works with valuation of the financial assets and liabilities held by the Group.
THE GROUP 30 Sept 2020
| 2020 | 2019 | 2019 | |
|---|---|---|---|
| SEK m | Q3 | Q3 | Full Year |
| Renenue from goods | 10,294 | 9,509 | 12,287 |
| Renenue from services | 681 | 582 | 1,451 |
| 10,975 | 10,091 | 13,738 | |
| Fix-price contract | 8,687 | 7,279 | 10,286 |
| Time-and-materials contracts | 2,288 | 2,812 | 3,452 |
| 10,975 | 10,091 | 13,738 | |
| Sold directly to consumers | 5,610 | 5,341 | 7,248 |
| Sold through intermediaries | 5,365 | 4,750 | 6,490 |
| 10,975 | 10,091 | 13,738 |
Latour's revenues are derived from a variety of operations that are conducted in about a hundred subsidiaries.
| 2020 | 2019 | 2018 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | Q4 | Q3 | Q2 | Q1 |
| INCOME STATEMENT | |||||||||||||
| Net sales | 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 | -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 | 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 | -860 | -935 | -1,019 | -3,618 | -1,064 | -855 | -831 | -868 | -3,315 | -899 | -786 | -851 | -779 |
| Operating profit | 596 | 461 | 425 | 1,819 | 364 | 443 | 599 | 413 | 1,397 | 385 | 374 | 371 | 267 |
| Total portfolio management | 836 | 2,469 | -355 | 3,965 | 1,029 | 350 | 1,209 | 1,377 | 1,280 | 321 | 473 | 106 | 380 |
| Profit before financial items | 1,432 | 2,930 | 70 | 5,784 | 1,393 | 793 | 1,808 | 1,790 | 2,677 | 706 | 847 | 477 | 647 |
| Net financial items | -40 | -121 | 46 | -59 | -67 | 31 | -24 | 1 | -31 | -12 | -14 | -14 | 9 |
| Profit after financial items | 1,382 | 2,809 | 116 | 5,725 | 1,326 | 824 | 1,784 | 1,791 | 2,646 | 694 | 833 | 463 | 656 |
| Taxes | 93 | -67 | -112 | -415 | -79 | -133 | -113 | -90 | -322 | -67 | -90 | -95 | -70 |
| Profit for the period | 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 | 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 | 483 | 2053 | 1606 | 249 | 169 | 122 | -1171 | 1129 | 67 | 73 | 22 | 25 | -53 |
| Adjusted equity ratio, % Adjusted equity |
85 77,112 |
82 67,933 |
80 59,626 |
86 71,398 |
86 71,398 |
87 65,229 |
88 66,481 |
87 62,720 |
86 52,395 |
86 52,395 |
87 58,490 |
87 56,880 |
88 54,105 |
| Net asset value | 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 | 148 | 127 | 114 | 136 | 136 | 127 | 127 | 119 | 100 | 100 | 108 | 105 | 99 |
| Listed share price, SEK | 211 | 169 | 142 | 153 | 153 | 130 | 137 | 125 | 112 | 112 | 111 | 97 | 95 |
| NET SALES | |||||||||||||
| Caljan | 311 | 219 | 222 | 113 | 113 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hultafors Group Latour Industries |
915 725 |
839 689 |
846 812 |
2,896 3,079 |
866 810 |
693 739 |
689 790 |
648 740 |
2,407 2,758 |
716 747 |
618 660 |
596 700 |
477 652 |
| Nord-Lock Group | 300 | 324 | 357 | 1,448 | 330 | 340 | 395 | 384 | 1,309 | 333 | 332 | 341 | 303 |
| Swegon | 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 |
| 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 | 70 | 63 | 47 | 219 | 56 | 63 | 55 | 43 | 174 | 51 | 45 | 40 | 37 |
| 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 | 58 | 27 | 30 | 20 | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hultafors Group | 157 | 114 | 108 | 412 | 138 | 97 | 90 | 88 | 375 | 119 | 93 | 98 | 65 |
| Latour Industries | 87 | 48 | 71 | 257 | 60 | 74 | 67 | 56 | 191 | 55 | 57 | 48 | 31 |
| Nord-Lock Group | 83 | 84 | 97 | 411 | 71 | 94 | 124 | 121 | 397 | 89 | 106 | 108 | 94 |
| Swegon | 217 | 201 | 143 | 717 | 145 | 199 | 226 | 147 | 514 | 138 | 144 | 143 | 89 |
| 602 | 474 | 449 | 1,817 | 434 | 464 | 507 | 412 | 1,477 | 401 | 399 | 397 | 279 | |
| Gain/loss from sale/purchase of | 1 | -10 | -17 | 29 | -63 | -15 | 108 | -1 | -38 | -17 | -10 | -10 | -1 |
| Other companies and items | -4 599 |
-7 457 |
-8 424 |
-27 1,819 |
-7 364 |
-6 443 |
-17 598 |
2 413 |
-42 1,397 |
1 385 |
-15 374 |
-16 371 |
-11 267 |
| OPERATING MARGIN (%) | |||||||||||||
| Caljan | 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 | 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 | 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 | 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 | 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 |
| 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–Sept 2020: 4,035/639,325,336 x 1,000=6.31 Jan–Sept 2019: 4,063/639,190,632 x 1,000=6.35
Calculations: Jan–Sept 2020: 4,035/641,411,586 x 1,000=6.29 Jan–Sept 2019: 4,063/641,271,584 x 1,000=6.33
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 55. The conference will be broadcast on the Internet. To follow the presentation, please visit our website, www.latour.se.
The 2020 Year-End Report will be published on 12 February 2021 The interim report for the period January – March 2021 will be published on 29 April 2021 The AGM will be held on 10 May 2021 at the Swedish Exhibition & Congress Centre (Svenska Mässan) in Gothenburg 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 5 November 2020, 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
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.