Quarterly Report • Oct 21, 2020
Quarterly Report
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–8%
| Third quarter | January-September | |||||
|---|---|---|---|---|---|---|
| 2019 | 2020 | Δ | 2019 | 2020 | Δ | |
| Sales, SEK M | 24,034 | 22,225 | –8% | 69,082 | 64,351 | –7% |
| Of which: | ||||||
| Organic growth | 807 | –1,043 | –5% | 2,505 | –6,001 | –9% |
| Acquisitions and divestments | 825 | 816 | 4% | 2,303 | 2,118 | 3% |
| Exchange-rate effects | 1,211 | –1,581 | –7% | 3,393 | –849 | –1% |
| Operating income (EBIT)1, SEK M | 3,894 | 3,593 | –8% | 10,873 | 8,441 | –22% |
| Operating margin (EBITA)1, % | 16.7% | 16.8% | 16.2% | 13.8% | ||
| Operating margin (EBIT)1, % | 16.2% | 16.2% | 15.7% | 13.1% | ||
| Income before tax1, SEK M | 3,645 | 3,417 | –6% | 10,104 | 7,828 | –23% |
| Net income1, SEK M | 2,697 | 2,528 | –6% | 7,477 | 5,792 | –23% |
| Operating cash flow, SEK M | 4,401 | 4,407 | 0% | 9,208 | 9,031 | –2% |
| Earnings per share1, SEK | 2.43 | 2.28 | –6% | 6.73 | 5.21 | –23% |
1 Excluding non-cash operating income in Q3 2020 from revaluation at fair value of 39% ownership in agta record (a shareholding in associates), totaling SEK 1,910 M. The operating income has no tax impact.
The outbreak of Covid-19 has impacted our lives and how we do business. I am pleased that all our efforts have resulted in a significantly improved result compared to the previous quarter. Compared to the same quarter last year, our organic growth declined by 5%, currency effects were negative at –7%, while acquired growth was positive at 4%. Total sales declined by 8%. But the quarter has seen a strong recovery in all divisions (especially in EMEA), with the slowest recovery in Global Technologies which continues to be affected by Covid-19 in its main customer segments.
Operating income, including divestment gains of SEK 252 M, was SEK 3,593 M and the corresponding margin recovered strongly in the quarter to 16.2%. Significant cost-saving measures have been implemented, partly offsetting the lower volumes. We continued to generate a very strong operating cash flow of SEK 4,407 M and the cash conversion in the quarter was at 129% (121). As a result of the improved financial performance, the Board of Directors has decided to propose a second dividend of SEK 1.85 making the total dividend SEK 3.85 as originally proposed at the beginning of the year before the outbreak of Covid-19.
The quarter continued to be impacted by Covid-19, but most of our important markets showed good recovery. In particular, the markets in Europe recovered faster than in the US, as lockdowns were eased and distributors started to restock. In Asia, China continued to improve, but South Korea and South Asia remained weak. Some customer segments are still impacted by lower mobility and this has negatively affected several business areas in Global Technologies. Entrance Systems continued to improve its performance and reported positive organic growth while we also welcomed agta record into the ASSA ABLOY family.
We have continued to implement significant cost-saving measures with a focus on long-term cost reductions. This unfortunately means we had to reduce the number of employees in the Group and we are cutting costs in all areas except product development and strategic growth areas. In total, these actions have reduced our SG&A and conversion expenditures by around SEK 0.6 billion net during the quarter. In addition, we will be launching another restructuring program, MFP8, in the fourth quarter. The program will have a payback period of about two years, will include the closure of 9 factories and more than 30 offices and will generate annual savings of close to SEK 0.9 billion in 2023.
Covid-19 is continuing to impact our business negatively and we will therefore continue to focus on cost measures, while also investing in growth initiatives that can compensate for the sales declines caused by Covid-19.
Finally, I would like to announce that we are launching a new sustainability program with ambitious targets for 2025 and that we are committing to the science-based targets climate initiative, which aligns us with the Paris Agreement. This demonstrates our desire to lead our industry towards a more sustainable future, and will further improve our competitiveness through sustainable products, solutions and operations.
Stockholm, 21 October 2020
Nico Delvaux President and CEO
Sales by quarter and last 12 months
Operating cash flow, quarter Operating cash flow, 12 months
The Group's sales decreased by 8% to SEK 22,225 M (24,034). Organic growth amounted to –5% (4). Growth from acquisitions and divestments was 4% (4), of which 4% (4) were acquisitions and 0% (0) divestments. Exchange-rates affected sales by –7% (5).
The Group's operating income (EBIT)2 amounted to SEK 3,593 M (3,894), a decrease of 8%. The corresponding operating margin was 16.2% (16.2). Divestments of certain agta record and ASSA ABLOY businesses generated nonrecurring operating income of SEK 252 M. Exchange-rates had an impact of SEK –264 M (192). Operating income before amortizations from acquisitions (EBITA)2 amounted to SEK 3,734 M (4,010). The corresponding EBITA margin was 16.8% (16.7).
Net financial items amounted to SEK –176 M (–250). The Group's income before tax2 was SEK 3,417 M (3,645), a decrease of 6% compared with last year. Exchange-rates had an impact of SEK –262 M (180) on income before tax2. The corresponding profit margin was 15.4% (15.2).
The estimated effective tax rate2 on an annual basis was 26% (26). Earnings per share2 amounted to SEK 2.28 (2.43), a decrease of 6% compared with last year. Operating cash flow amounted to SEK 4,407 M (4,401).
The Group's sales for the first nine months of 2020 totaled SEK 64,351 M (69,082), representing a decrease of 7%. Organic growth was –9% (4). Acquisitions and divestments were 3% (4), of which 3% (4) were acquisitions and 0% (0) were divestments. Exchange-rate effects affected sales by –1% (5).
The Group's operating income (EBIT)2 amounted to SEK 8,441 M (10,873), a decrease of 22% compared with last year. The corresponding operating margin was 13.1% (15.7). Operating income before amortizations from acquisitions (EBITA)2 amounted to SEK 8,856 M (11,213). The corresponding EBITA margin was 13.8% (16.2).
Earnings per share2 amounted to SEK 5.21 (6.73), a decrease of 23% compared with last year. Operating cash flow totaled SEK 9,031 M (9,208), a decrease of 2% compared with last year.
A new manufacturing footprint program will be launched at year-end 2020. The closure of 9 factories and more than 30 offices are expected to take place over a period of two years. The estimated cost of the manufacturing footprint program is close to SEK 1,300 M, with an expected payback time (inclusive of investments) of around two years.
Payments related to all restructuring programs amounted to SEK 155 M (181) during the quarter. The restructuring programs proceeded according to plan and led to a personnel reduction of 460 Full-Time Equivalents for the quarter and
2 Excluding non-cash operating income in Q3 2020 from revaluation at fair value of 39% ownership in agta record (a shareholding in associates), totaling SEK 1,910 M. The operating income has no tax impact.
1,427 for the year to date. At the end of the quarter provisions of SEK 363 M remained in the balance sheet for carrying out the programs.
Sales for the quarter in EMEA totaled SEK 4,824 M (5,120), with organic growth of –2% (3). Sales growth was good in the UK and was stable in Scandinavia and Germany. Sales declined in Benelux, Eastern Europe, France, Middle East/Africa and in South Europe. Acquired growth net was 0%. Operating income totaled SEK 765 M (822), which represents an operating margin (EBIT) of 15.9% (16.1). Return on capital employed amounted to 16.1% (15.9). Operating cash flow before non-cash items and interest paid totaled SEK 854 M (838).
Sales for the quarter in Americas totaled SEK 4,779 M (6,099), with organic growth of –5% (6). Sales growth was very strong in US Smart Residential and Latin America, and strong in US Residential. Sales declined for Architectural Hardware, Electromechanical Solutions and Security Doors, and declined significantly in Access & High Security. Acquired growth net was –9%. Operating income totaled SEK 966 M (1,249), which represents an operating margin (EBIT) of 20.2% (20.5). Return on capital employed amounted to 27.4% (24.1). Operating cash flow before non-cash items and interest paid totaled SEK 1,435 M (1,854).
Sales for the quarter in Asia Pacific totaled SEK 2,479 M (2,874), with organic growth of –8% (–1). Sales declined in Pacific and China, and were significantly down in all other regions. Acquired growth net was 0%. Operating income totaled SEK 183 M (274), which represents an operating margin (EBIT) of 7.4% (9.5). Return on capital employed amounted to 8.4% (11.6). Operating cash flow before non-cash items and interest paid totaled SEK 441 M (337).
Sales for the quarter in Global Technologies totaled SEK 3,428 M (3,991), with organic growth of –17% (6). Sales growth was stable in Secure Issuance, but declined in Identity and Access Management Solutions. Sales in all other business areas declined significantly, including Global Solutions. Acquired growth net was 9%. Operating income totaled SEK 550 M (810), which represents an operating margin (EBIT) of 16.0% (20.3). Return on capital employed amounted to 9.6% (14.7). Operating cash flow before non-cash items and interest paid totaled SEK 513 M (775).
Sales for the quarter in Entrance Systems totaled SEK 7,116 M (6,427), with organic growth of 1% (3). Sales growth was good in Perimeter Security, showed growth in Residential and Industrial, but declined in Pedestrian. Acquired growth net was 17%. Operating income2 totaled SEK 1,266 M (873), which represents an operating margin (EBIT) of 17.8% (13.6). Divestments of certain agta record and ASSA ABLOY businesses generated non-recurring operating income of SEK 252 M. Return on capital employed2 amounted to 16.7% (14.3). Operating cash flow before non-cash items and interest paid totaled SEK 1,610 M (949).
Four acquisitions were consolidated during the quarter. The combined acquisition price for the businesses acquired during the year, including adjustments from prior year acquisitions, amounted to SEK 11,858 M. The acquisition price on a cash and debt free basis totaled SEK 10,330 M. In the purchase price is included SEK 3,752 M of a non-cash revaluation at fair value of previously held shares in associated companies. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amounted to SEK 8,410 M. Estimated deferred considerations for acquisitions during the year amounted to SEK 537 M.
On August 20 2020, it was announced that ASSA ABLOY, previously a 39% shareholder in the Swiss company agta record, had completed the indirect acquisition of a 54% shareholding in agta record from the shareholders of Agta Finance. agta record is a well-established manufacturer and service organization for entrance automation. The main office is located in Fehraltorf, Switzerland. Sales in 2019, excluding divestments, amounted to around SEK 3,700 M.
ASSA ABLOY subsequently launched a public tender offer to purchase the remaining outstanding shares of agta record at a price of EUR 70.58 per agta record share. Following the closing of the tender offer on 30 September 2020, ASSA ABLOY holds 98% of the shares and votes in agta record. On October 9 the agta record shares were formally delisted from the Euronext Paris stock exchange.
agta record was fully consolidated into ASSA ABLOY on August 31, 2020.
On October 2 2020, it was announced that ASSA ABLOY had acquired Olimpia Hardware, a leading brand in glass hardware and accessories in Latin America and the Caribbean. Sales in 2019 amounted to around SEK 125 M.
On September 1 2020, it was announced that ASSA ABLOY had closed the sale of certain agta record and ASSA ABLOY businesses to the Italy-based FAAC Group, as part of its commitments to address the competition concerns of the EU Commission in connection with the acquisition of agta record. The divested businesses included the agta record operations in the Netherlands, Austria, Hungary and Slovenia, as well as ASSA ABLOY's automatic pedestrian door businesses in France and the UK. Agta record´s high-speed door business located mainly in France was also included. The divestiture was de-consolidated from ASSA ABLOY on August 31, 2020.
The divested business had sales in 2019 of approximately SEK 1,000 M. The selling price for the divestiture was approximately SEK 1,000 M in total and generated non-recurring operating income of SEK 252 M for ASSA ABLOY.
On September 7 2020, it was announced that ASSA ABLOY had signed an agreement to sell its sensor technology business CEDES in Switzerland to capiton AG. CEDES is a leading sensor technology company in the elevator and door industry. Sales in 2019 amounted to about SEK 525 M. The transaction will have a neutral effect on ASSA ABLOY´s operating margin. The divestiture is subject to customary closing conditions and is expected to close during the fourth quarter of 2020.
ASSA ABLOY has committed to the science-based targets initiative to further substantially reduce greenhouse gas emissions across the entire value chain. The Group will set targets that are aligned with the Paris Agreement, will contribute to limiting global temperature rise to 1.5°C, by halving emissions by 2030 and reaching net-zero by 2050. Sustainability will be vital to economic and industrial development in the coming decades. Our long-term commitment to science-based targets demonstrates our desire to lead our industry towards a more sustainable future, and will further improve our competitiveness with sustainable products, solutions and operations.
The Group is also launching a new ambitious sustainability program with targets for 2025. The new program builds on the momentum and progress from ASSA ABLOY's successive 5-year sustainability programs since 2010. The program focuses on improving employees' health and safety, reducing energy, carbon and water consumption, increasing materials efficiency and reducing waste generated.
Other operating income for the Parent company ASSA ABLOY AB totaled SEK 3,048 M (3,197) for the first nine months of the year. Operating income for the same period amounted to SEK 230 M (540). Investments in tangible and intangible assets totaled SEK 28 M (33). Liquidity is good and the equity ratio is 39.2% (36.0).
The Board of Directors, as a precautionary measure due to the Covid-19 pandemic, proposed that a first dividend of SEK 2.00 per share for the financial year 2019 should be voted on at the Annual General Meeting in April 2020. The proposal was adopted by the General Meeting.
The Board has now assessed the market situation and the financial position of the Group and concluded that it allows for a second dividend of SEK 1.85 per share for the financial year 2019 to be voted on at an Extraordinary General Meeting on 24 November 2020.
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the latest Annual Report have been applied. This Report was prepared in accordance with IAS 34 'Interim Financial Reporting' and the Annual Accounts Act. The Report for the Parent company was prepared in accordance with the Annual Accounts Act and RFR 2 'Reporting by a Legal Entity'.
ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules that the company uses – so-called 'alternative performance measures'. For definitions of financial performance measures, refer to Page 20 of this Report and to the company's latest Annual Report.
To check how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2019 appear on the company's website www.assaabloy.com.
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise.
No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties.
ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY's operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group's financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest rate risk, credit risk, and risks associated with the Group's pension obligations.
Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general. The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group.
The Covid-19 pandemic has had a substantial business impact on ASSA ABLOY during 2020. The continued impact of the pandemic on the business is difficult to predict due to the uncertainty of market conditions but the health and safety of our employees remain our first priority.
For a more detailed description of particular risks and risk management, see the 2019 Annual Report.
The guidance below relating to two key figures is provided to facilitate financial modelling but should not be viewed as market outlooks or business performance forecasts.
It is estimated that completed acquisitions and divestments, on a rolling 12 month basis as per 30 September 2020, will have an effect of 5% on sales in the fourth quarter of 2020 versus the same period last year, while the effect on the operating margin is estimated to be dilutive in the fourth quarter of 2020.
On the basis of the currency rates on 30 September 2020, it is estimated that the weighted currency effects on sales in the fourth quarter of 2020 versus the same period last year will be –4%, while the effect on the operating margin is estimated to be neutral in the fourth quarter of 2020.
The Company's Auditors have not carried out any review of this Report for the third quarter of 2020.
Stockholm, 21 October 2020
Nico Delvaux President and CEO
The Year-end Report and Quarterly Report for the fourth quarter will be published on 5 February 2021.
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72
ASSA ABLOY is holding a telephone and web conference at 09.30 on 21 October 2020
which can be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on: +46 8–505 583 54, +44 333 300 9034 or +1 646 722 4957
This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on 21 October 2020.
ASSA ABLOY AB (publ) Box 703 40 107 23 Stockholm Visiting address Klarabergsviadukten 90, Stockholm, Sweden Tel +46 (0)8 506 485 00 Fax +46 (0)8 506 485 85 www.assaabloy.com Corporate identity number: 556059-3575 No.26/2020
| CONDENSED INCOME STATEMENT | Q3 | Q1-Q3 | |||
|---|---|---|---|---|---|
| SEK M | 2019 | 2020 | 2019 | 2020 | |
| Sales | 24,034 | 22,225 | 69,082 | 64,351 | |
| Cost of goods sold | -14,408 | -13,199 | -41,361 | -38,703 | |
| Gross income | 9,625 | 9,026 | 27,721 | 25,647 | |
| Selling, administrative and R&D costs | -5,774 | -5,597 | -16,951 | -17,456 | |
| Share of earnings in associates | 43 | 163 | 103 | 249 | |
| Revaluation previously owned shares in associates | - | 1,910 | - | 1,910 | |
| Operating income | 3,894 | 5,502 | 10,873 | 10,350 | |
| Finance net | -250 | -176 | -769 | -613 | |
| Income before tax | 3,645 | 5,326 | 10,104 | 9,737 | |
| Tax on income | -948 | -888 | -2,627 | -2,035 | |
| Net income for the period | 2,697 | 4,438 | 7,477 | 7,702 | |
| Net income for the period attributable to: | |||||
| Parent company's shareholders | 2,696 | 4,437 | 7,476 | 7,700 | |
| Non-controlling interests | 1 | 1 | 0 | 2 | |
| Earnings per share | |||||
| Before and after dilution, SEK | 2.43 | 3.99 | 6.73 | 6.93 | |
| Before and after dilution and excluding items affecting comparability, SEK | 2.43 | 2.28 | 6.73 | 5.21 | |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOME | Q3 | Q1-Q3 | |||
| SEK M | 2019 | 2020 | 2019 | 2020 | |
| Net income for the period | 2,697 | 4,438 | 7,477 | 7,702 | |
| Other comprehensive income: | |||||
| Items that will not be reclassified to profit or loss | |||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | -214 | -81 | -502 | -484 | |
| Total | -214 | -81 | -502 | -484 | |
| Items that may be reclassified subsequently to profit or loss | |||||
| Share of other comprehensive income of associates | 64 | -51 | 166 | -33 | |
| Cashflow hedges and net investment hedges, net after tax | -11 | 1 | -28 | -1 | |
| Reclassification exchange rate differences previously owned shares in associates | - | -246 | - | -246 | |
| Exchange rate differences | 1,686 | -891 | 3,047 | -1,712 | |
| Total | 1,739 | -1,187 | 3,185 | -1,992 | |
| Total comprehensive income for the period | 4,222 | 3,170 | 10,160 | 5,225 | |
| Total comprehensive income for the period attributable to: | |||||
| Parent company's shareholders | 4,221 | 3,170 | 10,158 | 5,224 | |
| Non-controlling interests | 1 | 0 | 2 | 2 |
| CONDENSED BALANCE SHEET | 31 Dec | 30 Sep | ||
|---|---|---|---|---|
| SEK M | 2019 | 2019 | 2020 | |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 70,355 | 71,773 | 76,729 | |
| Property, plant and equipment | 8,498 | 8,657 | 8,897 | |
| Right-of-use assets | 3,731 | 3,746 | 3,779 | |
| Investments in associates | 2,595 | 2,643 | 685 | |
| Other financial assets | 104 | 104 | 105 | |
| Deferred tax assets | 1,205 | 1,498 | 1,422 | |
| Total non-current assets | 86,487 | 88,421 | 91,617 | |
| Current assets | ||||
| Inventories | 11,276 | 12,592 | 11,485 | |
| Trade receivables | 15,701 | 16,115 | 14,913 | |
| Other current receivables and investments | 4,144 | 4,719 | 5,478 | |
| Cash and cash equivalents | 442 | 459 | 4,906 | |
| Total current assets | 31,563 | 33,885 | 36,782 | |
| TOTAL ASSETS | 118,050 | 122,306 | 128,399 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Equity attributable to Parent company's shareholders | 59,143 | 57,946 | 62,161 | |
| Non-controlling interests | 11 | 8 | 12 | |
| Total equity | 59,154 | 57,954 | 62,174 | |
| Non-current liabilities | ||||
| Long-term loans | 21,100 | 21,179 | 25,353 | |
| Non-current lease liabilities | 2,588 | 2,732 | 2,722 | |
| Deferred tax liabilities | 2,368 | 2,199 | 2,584 | |
| Other non-current liabilities and provisions | 5,071 | 5,603 | 5,418 | |
| Total non-current liabilities | 31,127 | 31,713 | 36,078 | |
| Current liabilities | ||||
| Short-term loans | 5,460 | 8,764 | 7,026 | |
| Current lease liabilities | 1,151 | 1,014 | 1,096 | |
| Trade payables | 7,908 | 7,866 | 7,017 | |
| Other current liabilities and provisions | 13,250 | 14,995 | 15,009 | |
| Total current liabilities | 27,769 | 32,639 | 30,148 | |
| TOTAL EQUITY AND LIABILITIES | 118,050 | 122,306 | 128,399 |
| CHANGES IN EQUITY | Equity attributable to: | ||
|---|---|---|---|
| Parent | Non | ||
| company's | controlling | Total | |
| SEK M | shareholders | interests | equity |
| Opening balance 1 January 2019 according to adopted Annual Report | 51,890 | 10 | 51,900 |
| Change in accounting policies | -234 | - | -234 |
| New opening balance 1 January 2019 | 51,656 | 10 | 51,666 |
| Net income for the period | 7,476 | 0 | 7,477 |
| Other comprehensive income | 2,682 | 1 | 2,683 |
| Total comprehensive income | 10,158 | 2 | 10,160 |
| Dividend | -3,888 | - | -3,888 |
| Stock purchase plans | 15 | - | 15 |
| Change in non-controlling interest | 5 | -4 | 1 |
| Total transactions with shareholders | -3,868 | -4 | -3,872 |
| Closing balance 30 September 2019 | 57,946 | 8 | 57,954 |
| Opening balance 1 January 2020 | 59,143 | 11 | 59,154 |
|---|---|---|---|
| Net income for the period | 7,700 | 2 | 7,702 |
| Other comprehensive income | -2,476 | 0 | -2,477 |
| Total comprehensive income | 5,224 | 2 | 5,225 |
| Dividend | -2,222 | -1 | -2,222 |
| Stock purchase plans | 16 | - | 16 |
| Total transactions with shareholders | -2,206 | -1 | -2,206 |
| Closing balance 30 September 2020 | 62,161 | 12 | 62,174 |
| CONDENSED STATEMENT OF CASH FLOWS | Q3 | Q1-Q3 | |||
|---|---|---|---|---|---|
| SEK M | 2019 | 2020 | 2019 | 2020 | |
| OPERATING ACTIVITIES | |||||
| Operating income | 3,894 | 5,502 | 10,873 | 10,350 | |
| Depreciation and amortization | 842 | 912 | 2,465 | 2,764 | |
| Revaluation previously owned shares in associates | - | -1,910 | - | -1,910 | |
| Restructuring payments | -181 | -155 | -465 | -411 | |
| Other non-cash items | -37 | -219 | -300 | -273 | |
| Cash flow before interest and tax | 4,518 | 4,130 | 12,573 | 10,521 | |
| Interest paid and received | -179 | -90 | -636 | -506 | |
| Tax paid on income | -577 | -1,104 | -2,222 | -2,456 | |
| Cash flow before changes in working capital | 3,761 | 2,937 | 9,716 | 7,560 | |
| Changes in working capital | 591 | 820 | -1,215 | 795 | |
| Cash flow from operating activities | 4,353 | 3,756 | 8,500 | 8,355 | |
| INVESTING ACTIVITIES | |||||
| Net investments in intangible assets and property, plant and equipment | -410 | -301 | -1,136 | -1,234 | |
| Investments in subsidiaries | -1,049 | -4,229 | -2,979 | -5,784 | |
| Divestments of subsidiaries | 38 | 446 | 75 | 472 | |
| Investments in and disposals of associates | 0 | - | 16 | - | |
| Other investments and disposals | 0 | 0 | 0 | 0 | |
| Cash flow from investing activities | -1,421 | -4,084 | -4,025 | -6,546 | |
| FINANCING ACTIVITIES | |||||
| Dividends | - | - | -3,888 | -2,222 | |
| Acquisition of non-controlling interests | -14 | - | -19 | - | |
| Amortization of lease liabilities | -300 | -308 | -843 | -956 | |
| Net cash effect of changes in borrowings | -2,521 | 1,828 | 183 | 5,855 | |
| Cash flow from financing activities | -2,835 | 1,520 | -4,567 | 2,677 | |
| CASH FLOW FOR THE PERIOD | 97 | 1,192 | -92 | 4,486 | |
| CASH AND CASH EQUIVALENTS | |||||
| Cash and cash equivalents at beginning of period | 355 | 3,726 | 538 | 442 | |
| Cash flow for the period | 97 | 1,192 | -92 | 4,486 | |
| Effect of exchange rate differences | 7 | -12 | 13 | -22 | |
| Cash and cash equivalents at end of period | 459 | 4,906 | 459 | 4,906 | |
| KEY RATIOS | Year | Q1-Q3 |
| 2019 | 2019 | 2020 | |
|---|---|---|---|
| Return on capital employed, % | 16.6 | 16.2 | 13.8 |
| Return on capital employed excluding items affecting comparability, % | 17.0 | 16.2 | 11.8 |
| Return on shareholders' equity, % | 18.0 | 18.2 | 15.9 |
| Equity ratio, % | 50.1 | 47.4 | 48.4 |
| Interest coverage ratio, times | 14.9 | 14.8 | 17.5 |
| Total number of shares, thousands | 1,112,576 | 1,112,576 1,112,576 | |
| Number of shares outstanding, thousands | 1,110,776 | 1,110,776 1,110,776 | |
| Weighted average number of outstanding shares before and after dilution, thousands | 1,110,776 | 1,110,776 1,110,776 | |
| Average number of employees | 48,992 | 49,136 | 47,553 |
| CONDENSED INCOME STATEMENT | Year | Q1-Q3 | ||
|---|---|---|---|---|
| SEK M | 2019 | 2019 | 2020 | |
| Operating income | 1,523 | 540 | 230 | |
| Income before appropriations and tax | 4,962 | 1,504 | 1,777 | |
| Net income for the period | 5,134 | 1,479 | 1,777 |
| CONDENSED BALANCE SHEET | 30 Sep | ||
|---|---|---|---|
| SEK M | 2019 | 2019 | 2020 |
| Non-current assets | 39,443 | 39,785 | 38,143 |
| Current assets | 19,722 | 19,098 | 24,301 |
| Total assets | 59,165 | 58,883 | 62,444 |
| Equity | 24,883 | 21,215 | 24,455 |
| Untaxed reserves | 911 | 678 | 911 |
| Non-current liabilities | 16,877 | 16,083 | 17,252 |
| Current liabilities | 16,494 | 20,907 | 19,827 |
| Total equity and liabilities | 59,165 | 58,883 | 62,444 |
| THE GROUP IN SUMMARY | Q1 | Q2 | Q3 | Q4 | Q1-Q3 | Year | Q1 | Q2 | Q3 | Q1-Q3 Last 12 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2019 | 2019 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 months | |
| Sales | 21,505 | 23,544 | 24,034 | 24,946 | 69,082 | 94,029 | 22,173 | 19,953 | 22,225 | 64,351 | 89,297 |
| Organic growth | 5% | 3% | 4% | 1% | 4% | 3% | -3% | -18% | -5% | -9% | |
| Gross income excluding items affecting comparability |
8,596 | 9,500 | 9,625 | 9,979 | 27,721 | 37,700 | 8,973 | 7,648 | 9,026 | 25,647 | 35,627 |
| Gross margin excluding items affecting comparability | 40.0% | 40.4% | 40.0% | 40.0% | 40.1% | 40.1% | 40.5% | 38.3% | 40.6% | 39.9% | 39.9% |
| Operating income before depr. & amort. (EBITDA) | |||||||||||
| excluding items affecting comparability | 4,034 | 4,568 | 4,736 | 4,969 | 13,338 | 18,307 | 3,676 | 3,024 | 4,505 | 11,205 | 16,174 |
| Operating margin (EBITDA) | 18.8% | 19.4% | 19.7% | 19.9% | 19.3% | 19.5% | 16.6% | 15.2% | 20.3% | 17.4% | 18.1% |
| Depreciation and amortization excl. amortization | |||||||||||
| attributable to business combinations | -682 | -716 | -726 | -781 | -2,125 | -2,905 | -792 | -787 | -771 | -2,349 | -3,130 |
| Operating income before amortization (EBITA) excluding items affecting comparability |
3,352 | 3,852 | 4,010 | 4,188 | 11,213 | 15,402 | 2,884 | 2,237 | 3,734 | 8,856 | 13,044 |
| Operating margin (EBITA) | 15.6% | 16.4% | 16.7% | 16.8% | 16.2% | 16.4% | 13.0% | 11.2% | 16.8% | 13.8% | 14.6% |
| Amortization attributable to business combinations | -106 | -120 | -115 | -141 | -341 | -482 | -133 | -141 | -142 | -415 | -556 |
| Operating income (EBIT) | |||||||||||
| excluding items affecting comparability | 3,246 | 3,733 | 3,894 | 4,047 | 10,873 | 14,920 | 2,751 | 2,097 | 3,593 | 8,441 | 12,488 |
| Operating margin (EBIT) | 15.1% | 15.9% | 16.2% | 16.2% | 15.7% | 15.9% | 12.4% | 10.5% | 16.2% | 13.1% | 14.0% |
| Items affecting comparability1) | - | - | - | -312 | - | -312 | - | - | 1,910 | 1,910 | 1,598 |
| Operating income (EBIT) | 3,246 | 3,733 | 3,894 | 3,735 | 10,873 | 14,608 | 2,751 | 2,097 | 5,502 | 10,350 | 14,086 |
| Operating margin (EBIT) Net financial items |
15.1% -248 |
15.9% -271 |
16.2% -250 |
15.0% -268 |
15.7% -769 |
15.5% -1,037 |
12.4% -232 |
10.5% -205 |
24.8% -176 |
16.1% -613 |
15.8% -881 |
| Income before tax (EBT) | 2,997 | 3,462 | 3,645 | 3,467 | 10,104 | 13,571 | 2,519 | 1,892 | 5,326 | 9,737 | 13,204 |
| Profit margin (EBT) | 13.9% | 14.7% | 15.2% | 13.9% | 14.6% | 14.4% | 11.4% | 9.5% | 24.0% | 15.1% | 14.8% |
| Tax on income | -779 | -900 | -948 | -947 | -2,627 | -3,574 | -655 | -492 | -888 | -2,035 | -2,982 |
| Net income for the period | 2,218 | 2,562 | 2,697 | 2,520 | 7,477 | 9,997 | 1,864 | 1,400 | 4,438 | 7,702 | 10,222 |
| Net income attributable to: | |||||||||||
| Parent company's shareholders | 2,219 | 2,561 | 2,696 | 2,517 | 7,476 | 9,993 | 1,864 | 1,399 | 4,437 | 7,700 | 10,217 |
| Non-controlling interests | -1 | 0 | 1 | 3 | 0 | 4 | 1 | 1 | 1 | 2 | 5 |
| OPERATING CASH FLOW | Q1 | Q2 | Q3 | Q4 | Q1-Q3 | Year | Q1 | Q2 | Q3 | Q1-Q3 Last 12 | |
| SEK M | 2019 | 2019 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 months | |
| Operating income (EBIT) | 3,246 | 3,733 | 3,894 | 3,735 | 10,873 | 14,608 | 2,751 | 2,097 | 5,502 | 10,350 | 14,086 |
| Restructuring costs Revaluation previously owned shares in associates |
- - |
- - |
- - |
312 - |
- - |
312 - |
- - |
- - |
- -1,910 |
- -1,910 |
312 -1,910 |
| Depreciation and amortization | 788 | 835 | 842 | 922 | 2,465 | 3,387 | 925 | 927 | 912 | 2,764 | 3,686 |
| Net capital expenditure | -321 | -406 | -410 | -525 | -1,136 | -1,662 | -491 | -442 | -301 | -1,234 | -1,760 |
| Change in working capital | -2,048 | 242 | 591 | 1,364 | -1,215 | 148 | -1,485 | 1,460 | 820 | 795 | 2,159 |
| Interest paid and received | -179 | -277 | -179 | -233 | -636 | -869 | -172 | -244 | -90 | -506 | -739 |
| Repayment of lease liabilities | -262 | -281 | -300 | -316 | -843 | -1,159 | -326 | -322 | -308 | -956 | -1,272 |
| Non-cash items | -53 | -210 | -37 | -24 | -300 | -324 | 4 | -58 | -219 | -273 | -297 |
| Operating cash flow Operating Cash flow/Income before tax excluding |
1,171 | 3,636 | 4,401 | 5,235 | 9,208 | 14,442 | 1,206 | 3,418 | 4,407 | 9,031 | 14,266 |
| items affecting comparability | 0.39 | 1.05 | 1.21 | 1.39 | 0.91 | 1.04 | 0.48 | 1.81 | 1.29 | 1.15 | 1.23 |
| CHANGE IN NET DEBT SEK M |
Q1 2019 |
Q2 2019 |
Q3 2019 |
Q4 2019 |
Q1-Q3 2019 |
Year 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q1-Q3 2020 |
|
| Net debt at beginning of period | 29,246 | 35,100 | 37,620 | 36,843 | 29,246 | 29,246 | 33,050 | 36,371 | 34,112 | 33,050 | |
| Impact from transition to IFRS 16 | 3,711 | - | - | - | 3,711 | 3,711 | - | - | - | - | |
| Operating cash flow | -1,171 | -3,636 | -4,401 | -5,235 | -9,208 -14,442 | -1,206 | -3,418 | -4,407 | -9,031 | ||
| Restructuring payments | 161 | 123 | 181 | 261 | 465 | 726 | 83 | 173 | 155 | 411 | |
| Tax paid on income | 703 | 942 | 577 | 1,651 | 2,222 | 3,872 | 878 | 474 | 1,104 | 2,456 | |
| Acquisitions and divestments | 1,357 | 964 | 1,425 | 1,018 | 3,746 | 4,764 | 1,584 | 86 | 4,331 | 6,001 | |
| Dividend | - | 3,888 | - | - | 3,888 | 3,888 | - | 2,222 | - | 2,222 | |
| Actuarial gain/loss on post-employment benefit obligations Change to lease liabilities |
179 -127 |
210 -111 |
289 -51 |
-316 47 |
678 -288 |
362 -242 |
139 -1 |
407 -110 |
94 98 |
640 -14 |
|
| Exchange rate differences, etc. | 1,039 | 140 | 1,203 | -1,218 | 2,383 | 1,165 | 1,845 | -2,093 | -428 | -676 | |
| Net debt at end of period | 35,100 | 37,620 | 36,843 | 33,050 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 35,059 | |
| Net debt/Equity | 0.64 | 0.70 | 0.64 | 0.56 | 0.64 | 0.56 | 0.58 | 0.58 | 0.56 | 0.56 | |
| NET DEBT | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| SEK M | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | 2020 | ||||
| Interest-bearing assets | -168 | -144 | -113 | -100 | -108 | -76 | -47 | ||||
| Cash and cash equivalents | -414 | -355 | -459 | -442 | -1,676 | -3,726 | -4,906 | ||||
| Derivative financial instruments, net | 43 | -127 | 8 | -53 | -469 | -441 | -350 | ||||
| Pension provisions | 3,105 | 3,324 | 3,717 | 3,346 | 3,642 | 3,887 | 4,164 | ||||
| Lease liabilities | 3,776 | 3,694 | 3,746 | 3,739 | 3,924 | 3,614 | 3,818 | ||||
| Interest-bearing liabilities Total |
28,758 35,100 |
31,228 37,620 |
29,944 36,843 |
26,560 33,050 |
31,059 36,371 |
30,853 34,112 |
32,379 35,059 |
||||
| CAPITAL EMPLOYED AND FINANCING SEK M |
Q1 2019 |
Q2 2019 |
Q3 2019 |
Q4 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
||||
| Capital employed | 90,227 | 91,334 | 94,796 | 92,204 | 99,428 | 93,103 | 97,232 | ||||
| - of which goodwill | 55,731 | 56,179 | 59,134 | 57,662 | 61,573 | 58,243 | 64,013 | ||||
| - of which other intangible assets and PPE | 19,911 | 20,386 | 21,296 | 21,191 | 22,189 | 21,064 | 21,613 | ||||
| - of which right-of-use assets | 3,805 | 3,705 | 3,746 | 3,731 | 3,909 | 3,592 | 3,779 | ||||
| - of which investments in associates | 2,510 | 2,534 | 2,643 | 2,595 | 2,772 | 2,665 | 685 | ||||
| Net debt | 35,100 | 37,620 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | ||||
| Non-controlling interests | 10 | 6 | 8 | 11 | 13 | 12 | 12 | ||||
| Equity attributable to the Parent company´s shareholders | 55,117 | 53,708 | 57,946 | 59,143 | 63,044 | 58,980 | 62,161 | ||||
| DATA PER SHARE | Q1 | Q2 | Q3 | Q4 | Q1-Q3 | Year | Q1 | Q2 | Q3 | Q1-Q3 | |
| SEK Earnings per share before and after dilution |
2019 2.00 |
2019 2.31 |
2019 2.43 |
2019 2.27 |
2019 6.73 |
2019 9.00 |
2020 1.68 |
2020 1.26 |
2020 3.99 |
2020 6.93 |
|
| Earnings per share before and after dilution and | |||||||||||
| excluding items affecting comparability | 2.00 | 2.31 | 2.43 | 2.49 | 6.73 | 9.22 | 1.68 | 1.26 | 2.28 | 5.21 | |
| Shareholders' equity per share after dilution | 49.62 | 48.35 | 52.17 | 53.25 | 52.17 | 53.25 | 56.76 | 53.10 | 55.96 | 55.96 |
1) Items affecting comparability consist of restructuring costs and revaluation of previously owned shares in associates.
| Q3 and 30 Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Sales, external | 5,004 | 4,724 | 6,073 | 4,748 | 2,584 | 2,255 | 3,966 | 3,404 | 6,407 | 7,093 | - | - | 24,034 22,225 | |
| Sales, internal | 117 | 99 | 26 | 31 | 289 | 223 | 25 | 24 | 20 | 23 | -478 | -401 | - | - |
| Sales | 5,120 | 4,824 | 6,099 | 4,779 | 2,874 | 2,479 | 3,991 | 3,428 | 6,427 | 7,116 | -478 | -401 | 24,034 22,225 | |
| Organic growth | 3% | -2% | 6% | -5% | -1% | -8% | 6% | -17% | 3% | 1% | - | - | 4% | -5% |
| Acquisitions and divestments | -1% | 0% | 2% | -9% | 6% | 0% | 18% | 9% | 0% | 17% | - | - | 4% | 4% |
| Exchange-rate effects | 3% | -4% | 9% | -8% | 4% | -6% | 9% | -6% | 6% | -7% | - | - | 5% | -7% |
| Share of earnings in associates | - | - | - - |
5 | 4 | - - |
37 | 159 | - | - | 43 | 163 | ||
| Operating income (EBIT) excl. | ||||||||||||||
| items affecting comparability | 822 | 765 | 1,249 | 966 | 274 | 183 | 810 | 550 | 873 | 1,266 | -134 | -137 | 3,894 | 3,593 |
| Operating margin (EBIT) excl. | ||||||||||||||
| items affecting comparability1) | 16.1% 15.9% | 20.5% 20.2% | 9.5% | 7.4% | 20.3% 16.0% | 13.6% 17.8% | - | - | 16.2% 16.2% | |||||
| Revaluation previously owned shares in associates | - - |
- - |
- - |
- - |
- | 1,910 | - | - | - | 1,910 | ||||
| Operating income (EBIT) | 822 | 765 | 1,249 | 966 | 274 | 183 | 810 | 550 | 873 | 3,175 | -134 | -137 | 3,894 | 5,502 |
| Operating margin (EBIT) | 16.1% 15.9% | 20.5% 20.2% | 9.5% | 7.4% | 20.3% 16.0% | 13.6% 44.6% | - | - | 16.2% 24.8% | |||||
| Capital employed | 20,114 18,929 | 20,431 14,046 | 9,154 | 8,703 | 22,494 22,878 | 23,762 32,938 | -1,159 | -260 | 94,796 97,232 | |||||
| - of which goodwill | 11,267 10,948 | 14,982 11,107 | 4,349 | 4,055 | 15,646 15,810 | 12,890 22,094 | - | - | 59,134 64,013 | |||||
| - of which other intangible assets and | ||||||||||||||
| property, plant and equipment | 4,163 | 3 876 | 4,441 | 2 981 | 2,473 | 2,567 | 5,566 | 5,530 | 4,499 | 6,599 | 154 | 60 | 21,296 21,613 | |
| - of which right-of-use assets | 1,017 | 1 053 | 518 | 440 | 276 | 238 | 374 | 489 | 1,540 | 1,550 | 21 | 9 | 3,746 | 3,779 |
| - of which investments in associates | 0 | 1 | - | - | 672 | 641 | 19 | 23 | 1,952 | 21 | - | - | 2,643 | 685 |
| Return on capital employed | ||||||||||||||
| excluding items affecting comparability | 15.9% 16.1% | 24.1% 27.4% | 11.6% | 8.4% | 14.7% | 9.6% | 14.3% 16.7% | - | - | 16.5% 15.0% | ||||
| Operating income (EBIT) | 822 | 765 | 1,249 | 966 | 274 | 183 | 810 | 550 | 873 | 3,175 | -134 | -137 | 3,894 | 5,502 |
| Revaluation previously owned shares in associates | - - |
- - |
- - |
- - |
- -1,910 | - | - | - -1,910 | ||||||
| Depreciation and amortization | 199 | 228 | 144 | 115 | 96 | 86 | 189 | 226 | 205 | 251 | 9 | 7 | 842 | 912 |
| Net capital expenditure | -63 | -72 | -89 | -27 | -61 | -40 | -104 | -99 | -76 | -63 | -16 | 0 | -410 | -301 |
| Amortization of lease liabilities | -74 | -78 | -40 | -33 | -25 | -26 | -32 | -35 | -125 | -132 | -3 | -3 | -300 | -308 |
| Change in working capital | -46 | 12 | 591 | 414 | 53 | 238 | -88 | -129 | 72 | 288 | 9 | -4 | 591 | 820 |
| Operating cash flow by division | 838 | 854 | 1,854 | 1,435 | 337 | 441 | 775 | 513 | 949 | 1,610 | -135 | -137 | 4,617 | 4,716 |
| Non-cash items | -37 | -219 | -37 | -219 | ||||||||||
| Interest paid and received | -179 | -90 | -179 | -90 | ||||||||||
| Operating cash flow | 4,401 | 4,407 |
| Q1-Q3 and 30 Sep | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 2020 | |
| Sales, external | 15,303 13,404 | 17,205 14,376 | 7,027 | 5,717 | 10,971 10,539 | 18,576 20,315 | - | - | 69,082 64,351 | |||||
| Sales, internal | 317 | 335 | 68 | 71 | 986 | 707 | 74 | 75 | 84 | 80 | -1,528 -1,268 | - | - | |
| Sales | 15,620 13,739 | 17,272 14,447 | 8,013 | 6,424 | 11,045 10,614 | 18,660 20,395 | -1,528 -1,268 | 69,082 64,351 | ||||||
| Organic growth | 3% | -10% | 7% | -7% | 2% | -19% | 7% | -14% | 2% | -2% | - | - | 4% | -9% |
| Acquisitions and divestments | 1% | -1% | 1% | -8% | 5% | 1% | 17% | 12% | 1% | 13% | - | - | 4% | 3% |
| Exchange-rate effects | 2% | -1% | 10% | -1% | 4% | -2% | 8% | -2% | 6% | -2% | - | - | 5% | -1% |
| Share of earnings in associates | - | - | - | - | 15 | 14 | - | - | 88 | 236 | - | - | 103 | 249 |
| Operating income (EBIT) excl. | ||||||||||||||
| items affecting comparability | 2,513 | 1,593 | 3,491 | 2,783 | 659 | 197 | 2,090 | 1,441 | 2,526 | 2,832 | -407 | -405 | 10,873 | 8,441 |
| Operating margin (EBIT) excl. | ||||||||||||||
| items affecting comparability1) | 16.1% 11.6% | 20.2% 19.3% | 8.2% | 3.1% | 18.9% 13.6% | 13.5% 13.9% | - | - | 15.7% 13.1% | |||||
| Revaluation previously owned shares in associates | - - |
- - |
- - |
- - |
- | 1,910 | - | - | - | 1,910 | ||||
| Operating income (EBIT) | 2,513 | 1,593 | 3,491 | 2,783 | 659 | 197 | 2,090 | 1,441 | 2,526 | 4,742 | -407 | -405 | 10,873 10,350 | |
| Operating margin (EBIT) | 16.1% 11.6% | 20.2% 19.3% | 8.2% | 3.1% | 18.9% 13.6% | 13.5% 23.3% | - | - | 15.7% 16.1% | |||||
| Capital employed | 20,114 18,929 | 20,431 14,046 | 9,154 | 8,703 | 22,494 22,878 | 23,762 32,938 | -1,159 | -260 | 94,796 97,232 | |||||
| - of which goodwill | 11,267 10,948 | 14,982 11,107 | 4,349 | 4,055 | 15,646 15,810 | 12,890 22,094 | - | - | 59,134 64,013 | |||||
| - of which other intangible assets and | ||||||||||||||
| property, plant and equipment | 4,163 | 3,876 | 4,441 | 2,981 | 2,473 | 2,567 | 5,566 | 5,530 | 4,499 | 6,599 | 154 | 60 | 21,296 21,613 | |
| - of which right-of-use assets | 1,017 | 1,053 | 518 | 440 | 276 | 238 | 374 | 489 | 1,540 | 1,550 | 21 | 9 | 3,746 | 3,779 |
| - of which investments in associates | - | 1 | - | - | 672 | 641 | 19 | 23 | 1,952 | 21 | - | - | 2,643 | 685 |
| Return on capital employed | ||||||||||||||
| excluding items affecting comparability | 17.6% 11.1% | 23.8% 21.5% | 10.2% | 2.9% | 13.5% | 8.5% | 14.9% 13.4% | - | - | 16.2% 11.8% | ||||
| Operating income (EBIT) | 2,513 | 1,593 | 3,491 | 2,783 | 659 | 197 | 2,090 | 1,441 | 2,526 | 4,742 | -407 | -405 | 10,873 10,350 | |
| Revaluation previously owned shares in associates | - - |
- - |
- - |
- - |
- -1,910 | - | - | - -1,910 | ||||||
| Depreciation and amortization | 594 | 690 | 418 | 361 | 285 | 269 | 557 | 679 | 585 | 744 | 27 | 21 | 2,465 | 2,764 |
| Net capital expenditure | -309 | -297 | -261 | -220 | -147 | -147 | -237 | -354 | -164 | -213 | -19 | -3 | -1,136 -1,234 | |
| Amortization of lease liabilities | -218 | -240 | -106 | -98 | -73 | -79 | -92 | -109 | -348 | -419 | -5 | -10 | -843 | -956 |
| Change in working capital | -794 | -174 | 109 | 433 | -249 | 215 | -219 | -218 | -31 | 680 | -31 | -141 | -1,215 | 795 |
| Operating cash flow by division | 1,786 | 1,571 | 3,651 | 3,258 | 475 | 455 | 2,099 | 1,440 | 2,569 | 3,624 | -436 | -539 | 10,143 | 9,809 |
| Non-cash items | -300 | -273 | -300 | -273 | ||||||||||
| Interest paid and received | -636 | -506 | -636 | -506 | ||||||||||
| Operating cash flow | 9,208 | 9,031 | ||||||||||||
| Average number of employees | 11,594 10,665 | 9,255 | 8,701 | 11,064 | 9,726 | 5,421 | 6,443 | 11,477 11,763 | 325 | 255 | 49,136 47,553 |
1) Items affecting comparability consist of revaluation previously owned shares in associates.
Q1-Q4 and 31 Dec
| Global | Entrance | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 |
| Sales, external | 19,908 20,707 | 19,737 23,082 | 8,875 | 9,477 | 11,864 15,321 | 23,665 25,442 | 0 | - | 84,048 | 94,029 | ||||
| Sales, internal | 293 | 438 | 79 | 90 | 1,074 | 1,213 | 87 | 102 | 97 | 110 | -1,631 -1,953 | - | - | |
| Sales | 20,201 21,144 | 19,817 23,172 | 9,949 10,689 | 11,951 15,423 | 23,762 25,553 | -1,630 -1,953 | 84,048 | 94,029 | ||||||
| Organic growth | 2% | 2% | 9% | 7% | 4% | -1% | 8% | 5% | 4% | 2% | - | - | 5% | 3% |
| Acquisitions and disposals | 5% | 0% | 1% | 2% | 1% | 5% | 4% | 16% | 1% | 1% | - | - | 2% | 3% |
| Exchange-rate effects | 5% | 3% | 0% | 8% | 3% | 3% | 3% | 8% | 4% | 5% | - | - | 3% | 6% |
| Share of earnings in associates | - | - | - - |
17 | 17 | 3 5 |
147 | 124 | - - |
167 | 147 | |||
| Operating income (EBIT) excl. | ||||||||||||||
| items affecting comparability | 3,256 | 3,396 | 3,941 | 4,673 | 492 | 879 | 2,387 | 2,890 | 3,358 | 3,652 | -525 | -570 | 12,909 | 14,920 |
| Operating margin (EBIT) excl. | ||||||||||||||
| items affecting comparability | 16.1% 16.1% | 19.9% 20.2% | 4.9% | 8.2% | 20.0% 18.7% | 14.1% 14.3% | - - |
15.4% | 15.9% | |||||
| Restructuring costs | -438 | -185 | -225 | - | -130 | -6 | -218 | -4 | -108 | -116 | -100 | - | -1,218 | -312 |
| Impairment of goodwill etc | - | - | - | - | -5,595 | - | - | - | - | - | - | - | -5,595 | - |
| Operating income (EBIT) | 2,818 | 3,211 | 3,716 | 4,673 | -5,233 | 873 | 2,170 | 2,885 | 3,250 | 3,535 | -625 | -570 | 6,096 | 14,608 |
| Operating margin (EBIT) | 13.9% 15.2% | 18.8% 20.2% | -52.6% | 8.2% | 18.2% 18.7% | 13.7% 13.8% | - | - | 7.3% | 15.5% | ||||
| Capital employed | 16,883 18,659 | 18,506 19,678 | 7,455 | 9,053 | 18,511 22,329 | 20,742 23,024 | -951 | -539 | 81,146 | 92,204 | ||||
| - of which goodwill | 10,709 11,121 | 13,327 14,105 | 3,892 | 4,168 | 13,245 15,459 | 12,240 12,809 | - | - | 53,413 | 57,662 | ||||
| - of which other intangible assets and | ||||||||||||||
| property, plant and equipment | 3,971 | 4,092 | 3,813 | 4,423 | 2,340 | 2,469 | 4,866 | 5,632 | 4,378 | 4,451 | 151 | 124 | 19,518 | 21,191 |
| - of which right-of-use assets | 70 | 990 | - | 499 | 5 | 260 | - | 463 | 44 | 1,499 | - | 19 | 119 | 3,731 |
| - of which investments in associates | 9 | 1 | - | - | 587 | 637 | 19 | 23 | 1,819 | 1,935 | - | - | 2,434 | 2,595 |
| Return on capital employed | ||||||||||||||
| excluding items affecting comparability | 20.1% 18.4% | 22.5% 23.6% | 4.8% 10.3% | 14.0% 14.0% | 16.9% 16.2% | - | - | 16.2% | 17.0% | |||||
| Operating income (EBIT) | 2,818 | 3,211 | 3,716 | 4,673 | -5,233 | 873 | 2,170 | 2,885 | 3,250 | 3,535 | -625 | -570 | 6,096 | 14,608 |
| Restructuring costs | 438 | 185 | 225 | - | 130 | 6 | 218 | 4 | 108 | 116 | 100 | - | 1,218 | 312 |
| Impairment of intangible assets | - | - | - | - | 5,595 | - | - | - | - | - | - | - | 5,595 | - |
| Depreciation and amortization | 464 | 813 | 367 | 569 | 292 | 381 | 522 | 793 | 294 | 794 | 24 | 36 | 1,963 | 3,387 |
| Net capital expenditure | -500 | -454 | -327 | -348 | -6 | -220 | -281 | -366 | -170 | -276 | -36 | 3 | -1,319 | -1,662 |
| Amortization of lease liabilities | - | -295 | - | -149 | - | -100 | - | -129 | - | -477 | - | -9 | - | -1,159 |
| Change in working capital | -401 | 53 | -78 | 517 | 33 | -319 | -165 | -5 | -709 | -38 | 244 | -61 | -1,076 | 148 |
| Operating cash flow by division | 2,819 | 3,515 | 3,903 | 5,263 | 811 | 622 | 2,463 | 3,183 | 2,772 | 3,655 | -293 | -602 | 12,477 | 15,635 |
| Non-cash items | -458 | -324 | -458 | -324 | ||||||||||
| Interest paid and received | -662 | -869 | -662 | -869 | ||||||||||
| Operating cash flow | 11,357 | 14,442 | ||||||||||||
| Average number of employees | 11,717 11,373 | 8,768 | 9,360 | 11,492 11,016 | 4,624 | 5,594 | 11,463 11,313 | 288 | 336 | 48,353 | 48,992 |
| Sales by continent Q3 | Opening Solutions | Global | Entrance | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Europe | 4,427 | 4,291 | 9 | 24 | 133 | 138 | 900 | 839 | 2,810 | 2,960 | -177 | -194 | 8,103 | 8,059 |
| North America | 150 | 105 | 5,641 | 4,269 | 260 | 186 | 2,070 | 1,672 | 3,096 | 3,653 | -201 | -134 | 11,015 | 9,752 |
| Central- and South America | 29 | 14 | 420 | 403 | 12 | 5 | 155 | 76 | 28 | 6 | -8 | -5 | 635 | 498 |
| Africa | 220 | 190 | 5 | 27 | 6 | 3 | 96 | 74 | 14 | 9 | -7 | -6 | 333 | 297 |
| Asia | 261 | 194 | 24 | 50 | 1,821 | 1,521 | 676 | 605 | 339 | 279 | -51 | -33 | 3,069 | 2,617 |
| Oceania | 34 | 29 | 2 | 5 | 642 | 626 | 95 | 163 | 139 | 209 | -33 | -30 | 879 | 1,001 |
| Total | 5,120 | 4,824 | 6,099 | 4,779 | 2,874 | 2,479 | 3,991 | 3,428 | 6,427 | 7,116 | -478 | -401 | 24,034 22,225 |
| Sales by continent Q1-Q3 | Opening Solutions | Global | Entrance | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Europe | 13,611 12,183 | 33 | 43 | 438 | 388 | 2,826 | 2,733 | 8,598 | 8,285 | -568 | -563 | 24,937 | 23,070 | |
| North America | 437 | 329 | 15,941 13,242 | 861 | 584 | 5,559 | 5,137 | 8,632 | 10,683 | -683 | -453 | 30,748 | 29,524 | |
| Central- and South America | 74 | 47 | 1,195 | 1,030 | 32 | 29 | 350 | 274 | 66 | 44 | -23 | -30 | 1,695 | 1,394 |
| Africa | 607 | 469 | 18 | 32 | 11 | 11 | 281 | 291 | 41 | 40 | -16 | -18 | 942 | 825 |
| Asia | 783 | 619 | 81 | 90 | 4,908 | 3,684 | 1,773 | 1,644 | 955 | 793 | -131 | -110 | 8,368 | 6,720 |
| Oceania | 108 | 93 | 4 | 8 | 1,763 | 1,727 | 256 | 535 | 368 | 549 | -107 | -94 | 2,393 | 2,818 |
| Total | 15,620 13,739 | 17,272 14,447 | 8,013 | 6,424 | 11,045 10,614 | 18,660 20,395 | -1,528 -1,268 | 69,082 64,351 |
| Sales by product group Q3 | Opening Solutions | Global | Entrance | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Mechanical locks, lock systems and fittings | 2,483 | 2,300 | 2,307 | 1,966 | 1,329 | 1,171 | 66 | 71 | 2 | 3 | -187 | -157 | 6,000 | 5,353 |
| Electromechanical and electronic locks | 1,544 | 1,586 | 1,333 | 1,255 | 612 | 524 | 3,843 | 3,461 | 184 | 190 | -241 | -182 | 7,275 | 6,835 |
| Security doors and hardware | 942 | 812 | 2,425 | 1,546 | 925 | 762 | 82 | -104 | - | 611 | -26 | -33 | 4,348 | 3,593 |
| Entrance automation | 152 | 126 | 34 | 12 | 7 | 22 | - | - | 6,242 | 6,313 | -24 | -29 | 6,411 | 6,444 |
| Total | 5,120 | 4,824 | 6,099 | 4,779 | 2,874 | 2,479 | 3,991 | 3,428 | 6,427 | 7,116 | -478 | -401 | 24,034 22,225 | |
| Sales by product group Q1-Q3 | Opening Solutions | Global | Entrance | |||||||||||
| EMEA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 |
| Mechanical locks, lock systems and fittings | 7,643 | 6,524 | 6,543 | 5,964 | 3,741 | 3,197 | 102 | 226 | 6 | 6 | -538 | -507 | 17,496 | 15,408 |
Electromechanical and electronic locks 4,913 4,568 3,925 3,660 1,906 1,336 10,850 10,373 548 542 -818 -589 21,324 19,890 Security doors and hardware 2,706 2,287 6,736 4,794 2,351 1,841 94 15 - 1,797 -79 -80 11,809 10,655 Entrance automation 358 361 69 29 14 50 - - 18,106 18,050 -93 -93 18,454 18,398 Total 15,620 13,739 17,272 14,447 8,013 6,424 11,045 10,614 18,660 20,395 -1,528 -1,268 69,082 64,351
| NOTE 2 BUSINESS COMBINATIONS | ||||
|---|---|---|---|---|
| Q3 | ||||
| SEK M | 2019 | 2020 | 2019 | 2020 |
| Purchase prices | ||||
| Cash paid for acquisitions during the year | 1,083 | 6,275 | 2,620 | 7,543 |
| Holdbacks and deferred considerations for acquisitions during the year | 155 | 357 | 191 | 537 |
| Fair value of previously owned shares in associates | - | 3,752 | - | 3,752 |
| Adjustment of purchase prices for acquisitions in prior years | -2 | 0 | -6 | 27 |
| Total | 1,237 10,384 | 2,805 11,858 | ||
| Acquired assets and liabilities at fair value | ||||
| Intangible assets | 294 | 626 | 852 | 795 |
| Property, plant and equipment and right-of-use assets | 88 | 685 | 208 | 881 |
| Other non-current assets | 0 | 87 | 81 | 91 |
| Inventories | 38 | 594 | 152 | 675 |
| Current receivables and investments | 168 | 908 | 353 | 985 |
| Cash and cash equivalents | 67 | 2,137 | 62 | 2,173 |
| Non-current liabilities | 2 | -701 | -384 | -833 |
| Current liabilities | -523 | -858 | -940 | -1,071 |
| Total | 135 | 3,478 | 385 | 3,698 |
| Goodwill | 1,102 | 6,906 | 2,420 | 8,161 |
| Change in cash and cash equivalents due to acquisitions | ||||
| Cash paid for acquisitions during the year | 1,083 | 6,275 | 2,620 | 7,543 |
| Cash and cash equivalents in acquired subsidiaries | -67 -2,137 | -62 | -2,173 | |
| Paid considerations for acquisitions in prior years | 32 | 91 | 422 | 414 |
| Total | 1,049 | 4,229 | 2,979 | 5,784 |
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.
| 30 September 2020 | Financial instruments | at fair value | |||
|---|---|---|---|---|---|
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Financial assets at amortized cost | 19,918 | 19,918 | |||
| Financial assets at fair value through profit and loss | 6 | 6 | |||
| Derivatives - hedge accounting | 237 | 237 | 237 | ||
| Derivatives - held for trading | 187 | 187 | 187 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 39,396 | 40,015 | |||
| Financial liabilities at fair value through profit and loss | 1,378 | 1,378 | 1,378 | ||
| Lease liabilities | 3,818 | 3,818 | |||
| Derivatives - hedge accounting | 0 | 0 | 0 | ||
| Derivatives - held for trading | 74 | 74 | 74 | ||
| Financial instruments | |||||
| 31 December 2019 | at fair value | ||||
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Loans and other receivables | 16,296 | 16,296 | |||
| Financial assets at fair value through profit and loss | 6 | 6 | |||
| Available-for-sale financial assets | 94 | 94 | 94 | ||
| Derivative instruments - hedge accounting | 108 | 108 | 108 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 34,468 | 34,722 | |||
| Financial liabilities at fair value through profit and loss | 1,366 | 1,366 | 1,366 | ||
| Lease liabilities | 3,739 | 3,739 | |||
| Derivatives - hedge accounting | 6 | 6 | 6 |
Change in sales for comparable units after adjustments for Interest-bearing liabilities less interest-bearing assets. acquisitions and exchange rate effects. See the table on net debt for detailed information.
Operating income before depreciation and amortization as a Total assets less interest-bearing assets and non-interestpercentage of sales. bearing liabilities including deferred tax liability.
Operating income before amortization of intangible assets Shareholders' equity as a percentage of total assets. recognized in business combinations, as a percentage of sales.
Operating income as a percentage of sales.
Cash Flow from operating activities excluding restructuring Return on capital employed payments and tax paid on income minus net capital expenditure Income before tax plus net interest as a percentage of and repayment of lease liabilities. average capital employed excluding restructuring reserves.
Depreciation and amortization of intangible assets, property, plant and equipment and right-of-use assets.
Operating margin (EBIT) Income before tax plus net interest divided by net interest.
Profit margin (EBT) Net income attributable to parent company's shareholders Income before tax as a percentage of sales. as a percentage of average parent company's shareholders equity.
Investments in, less disposals of, intangible assets and Net income excluding non-controlling interests divided by property, plant and equipment. weighted average number of outstanding shares after any potential dilution.
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