Alimak Group - Interim / Quarterly Report 2021

Alimak Group AB ALIG, SE0007158910

Interim Report January – December 2020

Q4

Improved underlying profitability

⎯ Continued impact from COVID-19 and currency translation effects put pressure on reported order intake and revenue
⎯ Cost savings programme on track and further strengthening underlying margin improvements
⎯ Non-recurring expenses of MSEK 42 taken in the quarter
⎯ New organisation in place as of January 1, 2021, now set for next phase of the New Heights programme
⎯ Proposed dividend of SEK 2.00 per share, and an extra dividend of SEK 1.00 per share

FOURTH QUARTER

⎯ Order intake decreased by 21% to MSEK 844 (1,073) with an organic decrease of 14%
⎯ Revenue decreased by 18% to MSEK 933 (1,143) with an organic decrease of 11%
⎯ EBITA adj. amounted to MSEK 128 (151), margin 13.7% (13.2)
⎯ Result for the period decreased to MSEK 50 (88)
⎯ Earnings per share, basic and diluted, decreased to SEK 0.92 (1.62)
⎯ Cash flow from operations amounted to MSEK 164 (226)

JANUARY – DECEMBER

⎯ Order intake decreased by 14% to MSEK 3,761 (4,363) with an organic decrease of 11%
⎯ Revenue decreased by 18% to MSEK 3,740 (4,587) with an organic decrease of 15%
⎯ EBITA adj. amounted to MSEK 396 (629), margin 10.6% (13.7)
⎯ Result for the period decreased to MSEK 183 (394)
⎯ Earnings per share, basic and diluted, decreased to SEK 3.37 (7.28)
⎯ Cash flow from operations was MSEK 505 (502)
⎯ Leverage (Net Debt/EBITDA) at December 31, 2020 was 1.50 (1.33 as of December 31, 2019)
⎯ The Board of Directors propose a dividend of SEK 2.00 per share (1.75). In addition, the Board proposes an extra dividend of SEK 1.00.

KEY FIGURES, GROUP	Q4 2020	Q4 2019	∆	Jan-Dec 2020	Jan-Dec 2019	∆
Order intake, MSEK	844.5	1,073.3	-21%	3,761.3	4,363.2	-14%
Revenue, MSEK	933.3	1,143.4	-18%	3,740.3	4,587.4	-18%
EBITA adj, MSEK¹	127.6	151.5	-16%	396.2	628.9	-37%
EBITA margin adj, %¹	13.7%	13.2%		10.6%	13.7%
EBITA, MSEK	85.9	133.7	-36%	318.9	608.2	-48%
EBITA margin, %	9.2%	11.7%		8.5%	13.3%
EBIT, MSEK	77.2	122.9	-37%	277.5	565.1	-51%
EBIT margin, %	8.3%	10.7%		7.4%	12.3%
Result for the period, MSEK	49.8	87.8	-43%	182.7	394.0	-54%
Earnings per share, SEK	0.92	1.62	-43%	3.37	7.28	-54%
Cash flow from operations, MSEK	163.7	225.7	-27%	505.1	502.1	1%
Net debt/EBITDA, ratio	1.50	1.33	13%	1.50	1.33	13%

¹ Before non-recurring items

Alimak Group AB

Interim Report Q4 January – December 2020

Comments by the CEO

During the fourth quarter, market demand and customer investment activity continued to be impacted by the COVID-19 pandemic. While we saw good development within Alimak Group in October, the renewed lockdowns in November and December put pressure on order intake and revenue. Organic order intake was down by 14%, driven down by the continuing delay in investment decisions within our General Industry and BMU business. However, the underlying sales pipeline remains fairly strong and we continue to see very few project cancellations. Positive in the quarter was that Construction Equipment and After Sales both showed organic growth in order intake, with 8% and 6% respectively. Group revenue in the quarter was down by 11% organically, driven down by the lower order intake earlier in the year and some delays in project execution stemming from effects of the pandemic, with lower revenue in all business areas year on year.

With the continued challenging market situation during the fourth quarter, we have kept our focus on measures to safeguard profitability. I am pleased to see that the efficiency measures we have executed so far have further strengthened our underlying profitability and that we were able to deliver an adjusted EBITA-margin of 13.7% for the quarter as well as strong cash flow. The cost reductions we announced in October have been implemented as planned and we are well on track to deliver on the MSEK 60 targeted annual savings with full effect as of H2 2021.

Establishing the base for profitable growth

As of January 1, our new decentralised, customer focused organisation is in place and forms the base of efficient execution of our three-step New Heights programme and we are in the midst of developing the divisional strategies. An example of our accelerated efforts in R&D and digitalisation as well as in productand service development is the recently launched a new construction hoist for the Chinese market designed for

use inside elevator shafts. Further, our BIM Gallery has reached more than 1,000 downloads, proving the market’s need of digital representations of our product offering to improve the planning process of construction projects.

Set for margin improvements during 2021

We expect to see an improved business climate in the coming year, though the first half of 2021 will most likely continue to be challenging but we are prepared to manage different scenarios. We have completed step one in our New Heights programme, establishing the base, and will continue according to plan with step two; to secure margin improvements. 2021 will be a year where our main focus will be on delivering on our profit commitments while at the same time preparing the Group for phase three of the New Heights program; sustainable profitable growth in the years to come.

I want to take this opportunity to thank each and every one of our employees for adapting to the challenges during the year, for their commitment and for taking ownership to minimise the spread of the virus as well as the impact on each other, our customers and business. I am very happy and proud to have been given this opportunity to lead the Group and its amazing people. I see a lot of potential to realise going forward.

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Ole Kristian Jødahl, President and CEO

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

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MSEK
4,500 4,363 4,329 4,142 3,990
3,761
3,000
1,500
4,587 4,337 4,119 3,950 3,740
0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Revenue R-12 Order intake R-12
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MSEK %
800 20
13.7
600 12.8 15
11.4
10.6 10.6
400 10
200 5
629 555 469 420 396
0 0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
EBITA adj. R-12 EBITA adj. % R-12
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Alimak Group AB

Interim Report Q4 January – December 2020

Group Performance

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Share of revenue Share of EBITA adj.
Construction Rental Construction Rental
Industrial After Sales Industrial After Sales
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FOURTH QUARTER

Order intake in the quarter decreased by 21% to MSEK 844 (1,073) with an organic decrease of 14%. Construction Equipment and After Sales improved order intake organically while Industrial Equipment represented the majority of the drop. Rental reported a softer fourth quarter, but a strong full year.

Revenue decreased by 18% to MSEK 933 (1,143) with an organic decrease of 11%. The decrease in Industrial Equipment was MSEK 131 and Construction Equipment reported a decrease of MSEK 77.

EBITA adj. for the quarter was MSEK 128 (151) corresponding to a margin of 13.7% (13.2). The lower result was due to the decrease in volumes while the margin improved by 0.5 percentage points for the Group and was the highest for the entire year 2020, driven by the cost savings.

ORDER INTAKE	2020 Q4	2019	2020 2019 Jan-Dec	2020 2019 Jan-Dec
Orders, MSEK	844.5	1,073.3	3,761.3	4,363.2
Change, MSEK	-228.8	-141.2	-601.9	-257.9
Change, %	-21.3%	-11.6%	-13.8%	-5.6%
Whereof:
Volume & price, %	-13.8%	-15.7%	-10.9%	-10.1%
Exchange rate, %	-7.7%	4.1%	-2.9%	4.5%
Acquisition & divestment, %	0.2%	0.0%	0.0%	0.0%

REVENUE	2020 Q4	2019	2020 2019 Jan-Dec	2020 2019 Jan-Dec
Revenue, MSEK	933.3	1,143.4	3,740.3	4,587.4
Change, MSEK	-210.2	-6.8	-847.1	267.0
Change, %	-18.4%	-0.6%	-18.5%	6.2%
Whereof:
Volume & price, %	-11.4%	-4.6%	-15.4%	1.6%
Exchange rate, %	-7.4%	4.0%	-3.2%	4.6%
Acquisition & divestment, %	0.4%	0.0%	0.1%	0.0%

EBIT & EBITA adj.¹	2020 Q4	2019	2020 2019 Jan-Dec	2020 2019 Jan-Dec
EBIT, MSEK	77.2	122.9	277.5	565.1
EBIT margin, % EBITA adj, MSEK	8.3% 127.6	10.7% 151.5	7.4% 396.2	12.3% 628.9
EBITA margin adj, %	13.7%	13.2%	10.6%	13.7%
Change, MSEK	-23.7	-7.1	-232.6	74.4
Change, %	-15.7%	-4.5%	-37.0%	13.4%
Whereof:
Volume & price, %	-11.8%	-4.8%	-35.0%	11.1%
Exchange rate, %	-3.9%	0.3%	-2.0%	2.3%
Acquisition & divestment,	0.0%	0.0%	0.0%	0.0%

¹ Before non-recurring items

Non-recurring expenses amounted to MSEK 42 (18) of which MSEK 26 relating to the cost savings programme announced in October and the remaining MSEK 16 to reservations for customer claims following delays in project deliveries as well as provisions for inventories and customer receivables.

Amortisation in the quarter amounted to MSEK 9 (11) largely related to the acquired businesses and the decrease relates to some intangibles which are fully amortised.

EBIT in the quarter amounted to MSEK 77 (123).

The financial net was MSEK -7 (-18). The interest net was MSEK -6 (-7), leases MSEK -2 (-4) and the remaining portion largely related to currency fluctuations.

Tax expense for the quarter was MSEK 21 (17), a tax rate of 29% (16).

Interim Report Q4 January – December 2020

Alimak Group AB

Result for the period amounted to MSEK 50 (88) where the decrease came from the lower operating result and non-recurring expenses. EPS thereby decreased to SEK 0.92 (1.62) for the quarter.

Cash flow from operations in the quarter was MSEK 164 (226). The lower operating result was somewhat offset by further reductions in working capital of MSEK 55 (85) mainly through reduction of inventory.

Net investments in fixed assets in the quarter totalled MSEK 5 (12).

Capitalised investments in intangibles amounted to MSEK 3 (10).

Net repayment of borrowings amounted to MSEK 153 (64).

JANUARY – DECEMBER

Order intake during the period decreased by 14% to MSEK 3,761 (4,363) with an organic decrease of 11%. Industrial Equipment represented MSEK 475 of the total contraction of MSEK 602. Rental was the only business area reporting higher orders booked.

Investments related to acquired businesses amounted to MSEK 15 (17) and is fully related to the asset purchase of Verta Corporation.

Net investments in fixed assets in the period totalled MSEK 62 (65). The majority of investments relate to additions in the rental fleet of MSEK 38 (34) and investment in a production facility in Spain of MSEK 7.

The capitalised investments in intangibles for ERP and Field Service Management Systems amounted to MSEK 15 (22).

Net repayment of borrowings amounted to MSEK 351 (128).

Dividend of MSEK 94 (149) was paid out in May.

FINANCIAL POSITION

As of December 31, 2020, net debt totalled MSEK 680 (1,007 as of December 31, 2019).

The equity ratio was 62.8% (57.4 as of December 31, 2019) and the leverage (net debt/EBITDA) was 1.50 (1.33 as of December 31, 2019).

EMPLOYEES

Revenue decreased by 18% to MSEK 3,740 (4,587) with an organic decrease of 15%. All business areas recorded a decline in revenue with the main decrease within Construction Equipment and Industrial Equipment.

EBITA adj. for the period was MSEK 396 (629), corresponding to a margin of 10.6% (13.7). Compared to last year, all business areas reported lower results and margins.

Non-recurring expenses in the period amounted to MSEK 77 (64) of which the amount for this year largely relate to the restructuring and reorganisation measures put in place.

Amortisation in the period amounted to MSEK 41 (51) largely related to acquired businesses. The increase in amortisation for an ERP system is offset by fully amortised assets relating to customer contracts.

EBIT for the period amounted to MSEK 277 (565).

The financial net was MSEK -37 (-56) whereas the interest net was MSEK -22 (-29), the impact from IFRS 16 was MSEK -8 (-11) as well as positive currency impact.

Tax expense for the period was MSEK 58 (115) and the tax rate was 24% (23%).

Result for the period amounted to MSEK 183 (394) where the decrease relates to the lower operating result and non-recurring expenses. EPS decreased to SEK 3.37 (7.28).

As of December 31, 2020, there were 2,049 (2,286) FTEs in the Group.

SIGNIFICANT EVENTS DURING THE REPORTING PERIOD JANUARY – DECEMBER 2020

Management changes

On January 15, Alimak Group communicated that Tormod Gunleiksrud had informed Alimak Group’s Board of Directors that he wished to leave his position as President and CEO during 2020.

New CEO appointed

On March 20, the Board of Directors of Alimak Group appointed Ole Kristian Jødahl as President and CEO of Alimak Group, effective as of June 1, 2020. Ole Kristian Jødahl succeeded Tormod Gunleiksrud, who left the company after 8 years as President and CEO.

Ole Kristian Jødahl joined Alimak Group from the assignment as CEO of Hultafors Group. He has previously worked with operations management and held operational positions within SKF Group, most recently as Director, Sales & Marketing, Industrial Market, SKF Group.

Dividend for 2019

On April 1, the Board, due to the prevailing market uncertainty caused by COVID-19, proposed a decreased dividend for the financial year 2019 of SEK 1.75 per share which was approved by the Annual General Meeting held on May 7, 2020. The previous proposal of the Board of Directors of Alimak Group was a dividend of SEK 3.25.

Cash flow from operations in the period was MSEK 505 (502) following the decrease in working capital of MSEK 221 (-95).

Interim Report Q4 January – December 2020

Alimak Group AB

Changes to the Board

On May 7, Alimak Group held its Annual General Meeting. In accordance with the Nomination Committee’s proposal, Helena Nordman-Knutson, Tomas Carlsson, Christina Hallin and Sven Törnkvist were re-elected as Directors. Johan Hjertonsson, Petra Einarsson and Ole Kristian Jødahl were elected as new Directors of the Board. Jan Svensson and Anders Jonsson decided to resign as Directors. Johan Hjertonsson was elected Chair of the Board.

Verta acquisition

On August 27, Alimak Group announced the acquisition of Verta Corporation, an American service provider with a large share of the portfolio consisting of Manntech units. Closing took place on September 30, 2020.

Launch of the New Heights Programme

On October 7 and 8, Alimak Group launched the New Heights programme, consisting of three steps 1. Establish the base, 2. Secure margin improvements and 3. Profitable growth.

Part of the programme is a reorganisation. The Group will be organised into four, customer centric divisions: Construction, Industrial, BMU and Wind. The new organisation, and subsequent reporting structure, came into effect as of January 1, 2021.

The reorganisation, which in combination with restructuring, will result in targeted annual savings of around MSEK 60, with full effect by end of H1 2021. This will lead to non-recurring costs of approximately MSEK 60, of which MSEK 35 was taken in Q3 2020 and the balance of MSEK 25 was taken in Q4 2020.

Nomination committee appointed

On October 9, the Nomination Committee for the 2021 AGM was appointed according to the instructions adapted in 2016 and comprises the following members:

Anders Mörck, Latour, Chair of the Nomination Committee
Francisco de Juan, Alantra EQMC Asset Management
Johan Lannebo, Lannebo Fonder
Ulrik Grönvall, Swedbank Robur Fonder
Johan Hjertonsson, Alimak Group’s Chair of the Board

The Nomination Committee shall prepare proposals for the 2021 annual general meeting regarding the Chair of

the annual general meeting, number of Directors of the Board, fees to be paid to each of the Directors of the Board, election of Directors of the Board and Chair of the Board, remuneration to the auditor and election of auditor and, if necessary, proposal for changes in the instruction for the Nomination Committee.

Shareholders who wish to present proposals to the Nomination Committee for the 2021 annual general meeting can submit them by post: Alimak Group AB, att: Nomination Committee, Blekholmstorget 30, SE-111 64 Stockholm, Sweden or via e-mail: [email protected].

Management changes

On November 25, Tobias Lindquist decided to leave his role as CFO of Alimak Group. As of November 26, Bernt Ingman assumed the role of Interim CFO.

On November 26, Alimak Group appointed Annika Haaker as Chief People & Culture Officer.

Annika Haaker is currently Group HR Director of HL Display. She has 20+ years' experience from leading HR in international listed companies including Global Director of Talent & Development for Nobia and Nasdaq.

Annika will be a part of the Group Leadership Team and will start by mid-May 2021 at the latest.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

Dividend for 2020

For the financial year 2020, The Board of Directors propose a dividend of SEK 2.00 (1.75) per share based on existing number of shares. In addition, the Board proposes an extra dividend of SEK 1.00.

CFO appointed

On February 9, 2021, Alimak Group appointed Thomas Hendel as CFO, effective as of May 17, 2021.

Thomas Hendel will join Alimak Group from the role as Deputy Chief Financial Officer of Saab Group, a position he has held since 2016. He has 30 years of experience from different financial and general management roles within Saab and ABB, including as Interim Chief Financial Officer at Saab between May and September 2020.

FINANCIAL TARGETS AND POLICIES

Please refer to the latest Annual Report and alimakgroup.com.

Alimak Group AB

Interim Report Q4 January – December 2020

Construction Equipment

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Share of revenue
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Share of EBITA adj.
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Order intake remained flat at MSEK 130 (129) but increased 8% organically and was an improvement from Q3. Customers still show hesitation for capex investments and make decisions based on current project activity and confidence in the market especially in Americas. One exception was the large order from Morrow Equipment in the US for 36 construction hoists in December.

Revenue decreased by 38%, down 32% organically, to MSEK 126 (204), which still represents a sequential improvement from Q3 2020. The decrease primarily comes from the low backlog.

EBITA adj. was MSEK 14 (31), corresponding to a margin of 10.8% (15.4). The decrease was the result of the lower volumes and low factory utilisation as well as unfavourable geographical mix with lower deliveries to Americas. This was somewhat mitigated by cost reductions.

ORDER INTAKE	2020 Q4	2019	2020 2019 Jan-Dec	2020 2019 Jan-Dec
Orders, MSEK	129.8	129.0	558.0	633.6
Change, MSEK	0.8	-119.5	-75.5	-182.6
Change, %	0.6%	-48.1%	-11.9%	-22.4%
Whereof:
Volume & price, %	7.9%	-53.0%	-9.8%	-27.4%
Exchange rate, %	-7.3%	4.9%	-2.2%	5.0%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%
REVENUE	2020 Q4	2019	2020 2019 Jan-Dec
Revenue, MSEK	126.3	203.8	497.3	813.2
Change, MSEK	-77.4	27.3	-315.9	98.8
Change, %	-38.0%	15.5%	-38.9%	13.8%
Whereof:
Volume & price, %	-32.5%	10.9%	-36.8%	8.6%
Exchange rate, %	-5.5%	4.6%	-2.0%	5.3%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%
EBITA adj.¹	2020 Q4	2019	2020 2019 Jan-Dec
EBITA adj, MSEK	13.6	31.4	47.3	131.0
EBITA margin adj, %	10.8%	15.4%	9.5%	16.1%
Change, MSEK	-17.8	-3.0	-83.7	22.6
Change, %	-56.8%	-8.7%	-63.9%	20.9%
Whereof:
Volume & price, %	-58.1%	-11.4%	-64.8%	19.1%
Exchange rate, %	1.3%	2.7%	0.9%	1.8%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%

¹ Before non-recurring items

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

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MSEK
1,000
800 634 601 576
557 558
600
400
200
813 729 596 575 497
0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Revenue Order intake
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MSEK %
150 20
16.1 15.5
120 16
12.8
11.3
90 9.5 12
60 8
30 4
131 113 76 65 47
0 0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
EBITA adj. EBITA adj. %
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Alimak Group AB

Interim Report Q4 January – December 2020

Rental

Share of revenue

Share of EBITA adj.

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Order intake decreased by 9%, down 5% organically, to MSEK 78 (86) but showed good development for the full year. France reported strong order intake, while Germany and Benelux were softer in the quarter. The Australian market is improving after lifted lockdown measures and shows a promising pipeline.

Revenue decreased by 14%, down 11% organically, and amounted to MSEK 91 (107), primarily driven down by Australia. Strong deliveries to Europe, especially in France where utilisation rates are high which has enabled investments to expand the fleet.

EBITA adj. was MSEK 10 (16), corresponding to a margin of 11.5% (15.3), the result of the lower volumes and additional costs related to temporary staffing.

Order intake & Revenue R12M

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MSEK
500
400 351 373 396 384 376
300
200
100
397 392 377 376 361
0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Revenue Order intake
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Q4 Jan-Dec
ORDER INTAKE
2020 2019 2020 2019
Orders, MSEK 78.3 86.2 376.4 350.6
Change, MSEK -7.9 -26.4 25.8 -39.9
Change, % -9.2% -23.4% 7.4% -10.2%
Whereof:
Volume & price, % -4.8% -25.9% 9.4% -12.7%
Exchange rate, % -4.4% 2.5% -2.1% 2.5%
Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0%
Q4 Jan-Dec
REVENUE
2020 2019 2020 2019
Revenue, MSEK 91.2 106.7 360.8 396.6
Change, MSEK -15.4 15.4 -35.8 42.5
Change, % -14.5% 16.8% -9.0% 12.0%
Whereof:
Volume & price, % -10.7% 14.5% -7.1% 9.7%
Exchange rate, % -3.8% 2.3% -2.0% 2.3%
Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0%
Q4 Jan-Dec
EBITA adj.¹
2020 2019 2020 2019
EBITA adj, MSEK 10.5 16.4 50.5 58.3
EBITA margin adj, % 11.5% 15.3% 14.0% 14.7%
Change, MSEK -5.9 1.9 -7.8 7.2
Change, % -36.0% 13.0% -13.4% 14.1%
Whereof:
Volume & price, % -31.6% 10.8% -11.3% 12.0%
Exchange rate, % -4.4% 2.2% -2.1% 2.2%
Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0%
¹ Before non-recurring items
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EBITA adj. & EBITA margin adj. R12M

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MSEK %
70 18
14.7 14.4 14.1 15.0
60 14.0 15
50
12
40
9
30
6
20
10 3
58 56 53 56 51
0 0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
EBITA adj. EBITA adj. %
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Alimak Group AB

Interim Report Q4 January – December 2020

Industrial Equipment

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Share of revenue
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Share of EBITA adj.
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Order intake decreased by 38%, down 31% organically, to MSEK 345 (559). The biggest drop came from the BMU business unit, with delays in contract signing though stable sequentially compared to previous quarters in 2020. Order intake for Wind was down in the quarter, the result of the continued step out of the low profit tower internals business in China but reported a good full year. General industry continued to experience delayed customer decisions, especially towards the end of the quarter.

Revenue decreased by 18%, down 10% organically, to MSEK 422 (517), the result of delayed shipments for General Industry, delayed project starts for BMU and lower backlog for Wind.

ORDER INTAKE	2020 Q4	2019	2020 2019 Jan-Dec	2020 2019 Jan-Dec
Orders, MSEK	344.5	558.8	1,636.0	2,110.5
Change, MSEK	-214.2	-40.9	-474.5	-146.4
Change, %	-38.3%	-6.8%	-22.5%	-6.5%
Whereof:
Volume & price, %	-30.5%	-11.1%	-19.6%	-11.0%
Exchange rate, %	-7.8%	4.2%	-2.9%	4.5%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%
REVENUE	2020 Q4	2019	2020 2019 Jan-Dec
Revenue, MSEK	422.0	517.5	1,742.9	2,115.1
Change, MSEK	-95.5	-62.2	-372.2	46.3
Change, %	-18.5%	-10.7%	-17.6%	2.2%
Whereof: Volume & price, %	-10.0%	-14.8%	-14.0%	-2.4%
Exchange rate, %	-8.4%	4.1%	-3.6%	4.6%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%
EBITA adj.¹	2020 Q4	2019	2020 2019 Jan-Dec
EBITA adj, MSEK	28.2	24.6	34.4	107.6
EBITA margin adj, %	6.7%	4.8%	2.0%	5.1%
Change, MSEK	3.6	-7.4	-73.3	32.6
Change, %	14.5%	-23.1%	-68.1%	43.5%
Whereof:
Volume & price, %	16.3%	-31.4%	-66.8%	40.0%
Exchange rate, %	-1.8%	8.3%	-1.3%	3.5%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%

¹ Before non-recurring items

EBITA adj. increased to MSEK 28 (25), corresponding to a margin of 6.7% (4.8). Despite the lower volumes, the business area managed to improve profitability and margins both sequentially and compared to last year. All business units improved profitability, with the main improvement in BMU that reported improved gross margins as well as lower costs.

Order intake & Revenue R12M

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MSEK
2,500
2,110 2,075
1,934 1,850
2,000 1,636
1,500
1,000
500
2,115 1,958 1,944 1,838 1,743
0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Revenue Order intake
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EBITA adj. & EBITA margin adj. R12M

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MSEK %
120 6
5.1
100 5
80 3.7 4
3.2
60 3
2.0
40 1.7 2
20 1
108 73 63 31 34
0 0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
EBITA adj. EBITA adj. %
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Alimak Group AB

Interim Report Q4 January – December 2020

After Sales

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Share of revenue
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Share of EBITA adj.
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Order intake decreased by 2%, but increased 6% organically, to MSEK 292 (299). Regionally, Europe showed a strong development. Services to BMU customers were up compared to the same quarter the previous year.

Revenue decreased by 7%, flat organically, and amounted to MSEK 294 (316). While COVID-19 restrictions are increasing, the impact on daily service business is relatively limited as safety measures are in place from previous lockdowns. Increase of refurbishment revenue in the quarter. Continued good development for training revenues, delivered digitally, albeit it still represents a small portion of the business.

ORDER INTAKE	2020 Q4	2019	2020 2019 Jan-Dec	2020 2019 Jan-Dec
Orders, MSEK	291.8	299.2	1,191.0	1,268.7
Change, MSEK	-7.4	45.5	-77.7	111.1
Change, %	-2.5%	18.0%	-6.1%	9.6%
Whereof:
Volume & price, %	5.7%	14.2%	-2.8%	4.9%
Exchange rate, %	-8.7%	3.8%	-3.5%	4.7%
Acquisition & divestment, %	0.5%	0.0%	0.1%	0.0%
REVENUE	2020 Q4	2019	2020 2019 Jan-Dec
Revenue, MSEK	293.8	315.5	1,139.4	1,262.6
Change, MSEK	-21.8	12.7	-123.2	79.4
Change, %	-6.9%	4.2%	-9.8%	6.7%
Whereof:
Volume & price, %	-0.2%	0.3%	-6.8%	2.0%
Exchange rate, %	-8.0%	3.9%	-3.3%	4.7%
Acquisition & divestment, %	1.3%	0.0%	0.3%	0.0%
EBITA adj.¹	2020 Q4	2019	2020 2019 Jan-Dec
EBITA adj, MSEK	75.2	79.1	264.0	332.0
EBITA margin adj, %	25.6%	25.1%	23.2%	26.3%
Change, MSEK	-3.7	1.3	-67.8	11.8
Change, %	-4.7%	1.7%	-20.4%	3.7%
Whereof:
Volume & price, %	0.9%	5.2%	-17.8%	1.6%
Exchange rate, %	-5.6%	-3.5%	-2.7%	2.1%
Acquisition & divestment, %	0.0%	0.0%	0.0%	0.0%
¹ Before non-recurring items

EBITA adj. was MSEK 75 (79) corresponding to a margin of 25.6% (25.1), with stable gross margins compared to last year.

Order intake & Revenue R12M

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MSEK
1,600
1,269 1,281 1,235 1,198 1,191
1,200
800
400
1,263 1,258 1,202 1,161 1,139
0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Revenue Order intake
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EBITA adj. & EBITA margin adj. R12M

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MSEK %
400 40
26.3 24.9
23.0 23.1 23.2
300 30
200 20
100 10
332 313 277 268 264
0 0
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
EBITA adj. EBITA adj. %
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Alimak Group AB

Interim Report Q4 January – December 2020

DECLARATION

The CEO declares that the interim report presents a true and fair view of the operations, financial position and results of the Parent Company and Group, and describes the significant risks and uncertainties facing the Parent Company and the companies forming part of the Group.

Stockholm, February 11, 2021

Alimak Group AB (publ) corporate identity number 556714-1857

Ole Kristian Jødahl Board Member President and CEO

This interim report has not been reviewed by the company's auditors.

Alimak Group AB

Interim Report Q4 January – December 2020

Condensed statement of comprehensive income, Group

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Jan-Dec Jan-Dec
Amounts in MSEK Note Q4 2020 Q4 2019
2020 2019
Revenue 2 933.3 1,143.4 3,740.3 4,587.4
Cost of sales -636.0 -741.4 -2,550.7 -3,042.7
Gross profit 297.3 402.0 1,189.6 1,544.7
Operating expenses -220.1 -279.1 -912.1 -979.6
Operating profit (EBIT) 77.2 122.9 277.5 565.1
Financial net -6.7 -18.0 -36.9 -56.5
Profit before tax (EBT) 70.5 104.9 240.6 508.6
Income tax -20.7 -17.1 -57.9 -114.6
Result for the period 49.8 87.8 182.7 394.0
Attributable to owners of the parent company 49.8 87.8 182.7 394.0
Earnings per share, basic and dilluted, SEK 0.92 1.62 3.37 7.28
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to net profit for the period
Remeasurements of defined benefit pension plans -9.5 15.8 -23.7 -14.2
Income tax relating to remeasurements of pension plans 0.9 -3.9 4.1 2.8
Total -8.6 11.9 -19.6 -11.4
Items that may be reclassified to net profit for the period
Forreign exchange translation differences -163.9 -97.4 -223.2 65.9
Change in fair value of cash flow hedges -4.8 5.9 -2.7 -1.5
Income tax relating to change in fair value of cash flow hedges 0.9 -1.3 0.3 0.3
Total -167.9 -92.8 -225.6 64.7
Other comprehensive income -176.4 -80.9 -245.2 53.3
Total comprehensive income -126.6 6.9 -62.5 447.3
Attributable to owners of the parent company -126.6 6.9 -62.5 447.3
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Alimak Group AB

Interim Report Q4 January – December 2020

Condensed statement of financial position, Group

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Amounts in MSEK Note 31 Dec 2020 31 Dec 2019
ASSETS
Goodwill and other Intangible assets 2,831.8 2,988.4
Property, plant and and equipment 351.4 368.9
Right-of-use assets 3 207.9 262.9
Financial and other non-current assets 215.1 177.4
Total non-current assets 3,606.2 3,797.6
Inventories 439.0 613.3
Contract assets 291.5 357.9
Trade receivables 769.2 966.0
Other receivables and assets 199.4 254.5
Prepaid expenses and accrued income 64.3 57.8
Short term investments 24.1 56.2
Cash and cash equivalents 225.6 313.6
Total current assets 2,013.2 2,619.3
TOTAL ASSETS 5,619.4 6,416.9
EQUITY AND LIABILITIES
Shareholders equity 3,527.9 3,684.2
Long-term borrowings 666.8 1,034.5
Lease liability 158.1 202.9
Other long term liabilities 382.9 350.6
Total non-current liabilities 1,207.8 1,588.0
Short-term borrowings 48.7 84.0
Lease liability 56.5 64.1
Contract liabilities 75.8 99.4
Trade payables 246.1 336.7
Other current liabilities 456.6 560.5
Total current liabilities 883.7 1,144.7
TOTAL EQUITY AND LIABILITIES 5,619.4 6,416.9
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Alimak Group AB

Interim Report Q4 January – December 2020

Condensed statement of changes in equity, Group

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Retained
earnings and
Share Other paid-in Translation Hedging profit for the Total
Amounts in MSEK capital capital reserve reserve period equity
Opening balance, 1 Jan 2019 1.1 2,938.7 161.9 -2.0 310.0 3,409.7
Result for the period - - - - 394.0 394.0
Changes of fair value - - - -1.5 - -1.5
Revaluation of pension plans - - - - -14.2 -14.2
Tax attributable to revaluations - - - 0.3 2.8 3.1
Translation difference - - 65.9 - - 65.9
Total comprehensive income - - 65.9 -1.2 382.6 447.3
Dividend - - - - -148.7 -148.7
Repurchase of Treasury shares - -25.4 - - - -25.4
Share based payments - 1.3 - - - 1.3
Closing balance, 31 Dec 2019 1.1 2,914.6 227.8 -3.2 543.9 3,684.2
Opening balance, 1 Jan 2020 1.1 2,914.6 227.8 -3.2 543.9 3,684.2
Result for the period - - - - 182.7 182.7
Changes of fair value - - - -2.7 - -2.7
Revaluation of pension plans - - - - -23.7 -23.7
Tax attributable to revaluations - - - 0.3 4.1 4.4
Translation difference - - -223.2 - - -223.2
Total comprehensive income - - -223.2 -2.4 163.1 -62.5
Dividend - - - - -94.3 -94.3
Share based payments - 0.5 - - - 0.5
Closing balance, 31 Dec 2020 1.1 2,915.1 4.6 -5.6 612.7 3,527.9
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Alimak Group AB

Interim Report Q4 January – December 2020

Cash flow statement, Group

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Amounts in MSEK Q4 2020 Q4 2019 Jan-Dec 2020 Jan-Dec 2019
Operating activities
Profit before tax 70.5 104.9 240.6 508.6
Depreciation, amortisation and impairment losses 43.9 49.6 178.9 197.1
Other non-cash items -14.6 -10.8 19.3 -13.5
Income taxes paid 9.3 -2.6 -155.0 -95.1
Cashflow before change in working capital 109.1 141.1 283.8 597.1
Change in working capital
Change in inventory 97.8 17.2 136.1 87.3
Change in contract assets 1.0 -43.2 31.8 -102.8
Change in operating receivables 8.5 43.3 111.8 81.2
Change in operating liabilities -52.7 67.3 -58.4 -160.7
Cash flow from working capital 54.6 84.6 221.3 -95.0
Cash flow from operating activities 163.7 225.7 505.1 502.1
Investing activities
Purchase of subsidiaries net of cash acquired - - -14.9 -16.5
Purchase of intangible fixed assets -3.0 -10.0 -14.5 -22.3
Purchase of property, plant and equipment -4.9 -11.5 -61.5 -64.8
Net change in short term financial investments 20.3 -41.7 35.4 -64.0
Cash flow from investing activities 12.4 -63.2 -55.5 -167.6
Financing activities
Proceeds from borrowings 0.6 51.7 179.4 262.0
Repayment of borrowings -153.2 -115.7 -530.0 -389.8
Repayment of Lease liability -15.6 -23.0 -70.6 -88.1
Repurchase of treasury shares - - - -25.4
Dividends paid - - -94.3 -148.7
Cash flow from financing activities -168.2 -87.0 -515.5 -390.0
Net change in cash and cash equivalents 7.9 75.5 -65.9 -55.5
Cash & cash equivalents at beginning of period 229.3 245.2 313.6 355.6
Exchange rate differences in cash and cash equivalents -11.6 -7.1 -22.1 13.5
Cash & cash equivalents at end of period 225.6 313.6 225.6 313.6
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Alimak Group AB

Interim Report Q4 January – December 2020

Key figures

Key figures
Quarterly data	Q4	Q3 Q2 2020		Q1	Q4	Q3 Q2 2019		Q1
Order intake, MSEK	844.5	887.7	962.4	1,066.8	1,073.3	1,039.3	1,150.0	1,100.7
Revenue, MSEK	933.3	915.5	975.7	915.8	1,143.4	1,084.0	1,193.5	1,166.5
EBITDA, MSEK	121.1	100.9	118.8	115.5	172.4	188.3	210.6	190.9
EBITA adj, MSEK	127.6	102.7	86.6	79.3	151.5	152.0	172.0	153.4
EBITA margin adj, %	13.7%	11.2%	8.9%	8.7%	13.2%	14.0%	14.4%	13.2%
EBITA, MSEK	85.9	67.2	86.6	79.3	133.7	151.8	171.8	151.0
EBITA margin, %	9.2%	7.3%	8.9%	8.7%	11.7%	14.0%	14.4%	12.9%
EBIT, MSEK	77.2	58.6	74.1	67.6	122.9	140.8	161.5	139.9
EBIT, %	8.3%	6.4%	7.6%	7.4%	10.7%	13.0%	13.5%	12.0%
Result for the period, MSEK	49.8	40.9	50.6	41.4	87.8	99.5	108.2	98.5
Total comprehensive income, MSEK	-126.6	3.7	-125.0	185.5	6.9	167.1	135.8	137.5
Cash flow from operations, MSEK	163.7	205.8	123.5	12.1	225.7	134.2	106.2	35.9
Cash flow for the period, MSEK	7.9	12.6	19.8	-106.3	75.5	-89.5	39.1	-80.7
Cash flow from operations/EBITDA	1.4	2.0	1.0	0.1	1.3	0.7	0.5	0.2
Number of shares, thousands¹	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9
Average number of shares, thousands	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9	54,157.9
Earnings per share, SEK	0.92	0.75	0.94	0.76	1.62	1.83	2.00	1.82
Cash flow per share, SEK	0.15	0.23	0.37	-1.96	1.39	-1.65	0.72	-1.49
Equity per share, SEK	65.14	67.48	67.41	71.50	68.03	67.89	65.27	65.51
Total assets, MSEK	5,619.4	6,021.8	6,135.5	6,382.3	6,416.9	6,541.3	6,527.7	6,523.5
Cash and cash equivalents end of period, MSEK	225.6	229.3	221.8	215.4	313.6	245.2	327.0	289.0
Equity, MSEK	3,527.9	3,654.6	3,651.0	3,870.2	3,684.2	3,676.9	3,534.9	3,547.7
Capital employed, MSEK	4,208.3	4,508.1	4,668.0	4,915.5	4,691.5	4,938.5	4,855.4	4,781.5
Net debt, MSEK	680.4	853.5	1,017.0	1,045.3	1,007.3	1,261.6	1,320.5	1,233.8
Net debt excl. Lease liability (IFRS 16), MSEK	465.8	624.0	779.8	785.4	740.3	929.9	993.7	871.3
Equity ratio, %	62.8%	60.7%	59.5%	60.6%	57.4%	56.2%	54.2%	54.4%
Return on equity, %	5.0%	6.0%	7.8%	9.1%	11.1%	13.0%	12.3%	11.5%
Return on capital employed goodwill excluded, %	15.1%	13.8%	16.9%	20.0%	26.4%	25.7%	23.6%	25.1%
Return on capital employed, %	6.2%	6.8%	8.5%	10.2%	12.6%	12.5%	11.7%	11.7%
Interest coverage ratio, times	13.83	6.35	7.98	6.99	9.31	13.79	13.43	12.35
Net debt/EBITDA ratio	1.50	1.68	1.71	1.52	1.33	1.68	1.90	1.94
Net debt excl. Lease liability/EBITDA ratio	1.03	1.23	1.31	1.14	0.97	1.24	1.43	1.37
Number of employees	2,049	2,087	2,136	2,200	2,286	2,386	2,344	2,361

¹ There are no financial instrument or other contract that may entitle its holder to potential shares, thus there is no potential dilution

Alimak Group AB

Interim Report Q4 January – December 2020

Key figures (cont)

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2020 2019
Rolling 4 Quarters
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
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Rolling 4 Quarters	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Order intake, MSEK	3,761.3	3,990.2	4,141.8	4,329.4	4,363.2	4,504.4	4,568.7	4,601.1
Revenue, MSEK	3,740.3	3,950.4	4,118.9	4,336.7	4,587.4	4,594.2	4,609.2	4,527.2
EBITA adj, MSEK	396.2	420.1	469.4	554.8	628.9	636.0	619.9	596.6
EBITA margin adj, %	10.6%	10.6%	11.4%	12.8%	13.7%	13.8%	13.4%	13.2%
EBIT, MSEK	277.5	323.2	405.4	492.8	565.1	575.9	540.0	499.2
EBIT, %	7.4%	8.2%	9.9%	11.4%	12.3%	12.5%	11.7%	11.0%
Result for the period, MSEK	182.8	220.7	279.3	336.9	394.0	449.9	418.9	389.7
Total comprehensive income, MSEK	-62.5	321.1	234.5	495.3	447.3	593.3	441.4	343.7
Cash flow from operations, MSEK	505.1	567.1	495.5	478.4	502.1	424.2	402.8	305.8
Cash flow for the period, MSEK	-65.9	1.6	-100.5	-81.2	-55.5	-99.0	34.3	-12.2

For definitions of Key figures please visit: https://www.alimakgroup.com/English/investor-relations/financials/definitions/

Historical quarterly data 2018 – 2020

Amounts in MSEK	Q4	Q3	Q2	2020 Q1	Q4	Q3 Q2 2019	Q3 Q2 2019	Q1	Q4	Q3 Q2 2018	Q3 Q2 2018	Q1
Order Intake
Construction Equipment	130	109	140	179	129	128	164	212	248	143	226	199
Rental	78	74	112	113	86	85	89	90	113	61	114	102
Industrial Equipment	345	439	410	442	559	523	551	477	600	585	539	533
After Sales	292	265	300	333	299	302	346	321	254	314	303	286
Total	844	888	962	1,067	1,073	1,039	1,150	1,101	1,214	1,104	1,182	1,121
Revenue
Construction Equipment	126	110	137	124	204	131	271	208	176	176	185	177
Rental	91	99	84	87	107	100	99	91	91	95	87	80
Industrial Equipment	422	429	479	413	517	535	493	570	580	537	523	429
After Sales	294	278	276	292	316	319	331	297	303	290	316	274
Total	933	916	976	916	1,143	1,084	1,193	1,167	1,150	1,099	1,112	960
EBITA adj.
Construction Equipment	14	8	14	12	31	19	50	30	34	27	31	17
Rental	10	19	12	10	16	15	15	12	14	15	12	9
Industrial Equipment	28	0	7	-1	25	32	17	34	32	18	14	11
After Sales	75	76	54	59	79	85	90	78	78	76	92	74
Total	128	103	87	79	151	152	172	153	159	136	149	111
EBITA
Construction Equipment	7	5	14	12	31	19	50	30	46	27	30	17
Rental	7	15	12	10	16	15	15	12	14	15	12	9
Industrial Equipment	1	-15	7	-1	7	32	17	32	11	6	4	-1
After Sales	70	63	54	59	79	85	90	77	73	69	89	70
Total	86	67	87	79	134	152	172	151	144	117	135	95

Alimak Group AB

Interim Report Q4 January – December 2020

Bridge

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In MSEK Q4 2020 Q4 2019 Jan-Dec 2020 Jan-Dec 2019
EBIT 77.2 122.9 277.5 439.4
Add back:
Amortization 8.7 10.8 41.4 51.1
EBITA 85.8 133.7 318.9 490.5
Add back:
Depreciation 35.0 38.7 137.5 67.0
EBITDA 120.8 172.4 456.4 557.5
EBITA 85,8 133.7 318.9 490.5
Add back:
Items affecting comparability 41.8 17.8 77.3 64.1
EBITA adj. 127.6 151.5 396.2 554.6
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In MSEK 31 Dec 2020 31 Dec 2019
Non-current interest bearing debts 666.8 1,034.5
Current interest bearing debts 48.7 84.0
Non-current lease liability 158.0 202.9
current lease liability 56.6 64.1
Deduct:
Long term interest bearing receivables 0.1 8.4
Short term interest bearing receivables 24.0 56.2
Cash and cash equivalents 225.6 313.6
Net debt 680.4 1,007.3
Net debt 680.4 1,007.3
Add:
Shareholders equity 3,527.9 3,684.2
Capital Employed 4,208.3 4,691.5
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Alimak Group AB

Interim Report Q4 January – December 2020

Condensed Income statement, parent company

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Amounts in MSEK Q4 2020 Q4 2019 Jan-Dec 2020 Jan-Dec 2019
Revenue 12.6 4.3 20.9 12.1
Operating expenses -13.4 -7.9 -48.3 -33.4
Operating profit/loss (EBIT) -0.8 -3.6 -27.4 -21.3
Financial net 1.7 4.7 267.5 17.5
Profit/loss after financial items 0.9 1.1 240.1 -3.8
Change in untaxed reserves -15.9 -47.3 -15.9 -47.3
Group contribution 75.0 190.0 75.0 190.0
Profit/loss before tax (EBT) 60.0 143.8 299.2 138.9
Income tax -13.1 -30.7 -10.8 -29.0
Result for the period 46.9 113.1 288.4 109.9
Other comprehensive income - - - -
Total comprehensive income 46.9 113.1 288.4 109.9
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Condensed Balance sheet, parent company

company
Amounts in MSEK	31 Dec 2020	31 Dec 2019
Non-current assets
Shares in group companies	1,898.4	1,898.4
Other non-current assets	10.0	2.4
Total non-current assets	1,908.4	1,900.8
Current assets
Receivables from group companies	1,617.0	1,622.4
Other short term receivables	28.1	1.6
Cash and cash equivalents	11.0	89.4
Total current assets	1,656.1	1,713.4
TOTAL ASSETS	3,564.5	3,614.2
EQUITY AND LIABILITIES
Shareholders equity	3,032.3	2,838.2
Untaxed reserves	63.2	47.3
Non-current liabilities, interest bearing	-	37.9
Liabilities to group companies	438.3	648.0
Other current liabilities	30.7	42.8
TOTAL EQUITY AND LIABILITIES	3,564.5	3,614.2

Alimak Group AB

Interim Report Q4 January – December 2020

Notes

NOTE 1. ACCOUNTING POLICIES

This Interim Report was prepared in accordance with IFRS, applying IAS 34, Interim Financial Reporting. The same accounting and valuation policies were applied as in the most recent annual report except for new and revised standards and interpretations effective from January 1, 2020. Non-IFRS measures are also presented in the report since they are considered to be important supplemental measures of the Alimak Group’s performance. The definition of these can be found on the Group’s homepage and a bridge from IFRS measures into non-IFRS measures is found on page 18 of this report.

Alimak Group AB is the Parent Company of Alimak Group. The Interim Report for the parent company has been prepared in accordance with the Annual Accounts Act and with the standard RFR 2 Reporting by a legal entity, issued by the Swedish Financial Reporting Board. The same accounting principles and methods of computation are followed in the interim financial statements as compared with the most recent annual report. Alimak Group AB is applying the exception from IFRS 16 allowed under RFR 2. Right-of-use assets or lease liabilities are not recognised.

NOTE 2. REVENUE SPLIT

NOTE 2.REVENUE SPLIT
Amounts in MSEK	Q4 2020	Q4 2019	Jan-Dec 2020	Jan-Dec 2019
Europe	337.9	401.3	1,333.5	1,600.7
APAC	352.4	411.1	1,413.5	1,594.2
Americas	236.6	324.0	964.6	1,346.3
Other markets	6.4	7.0	28.7	46.2
Total	933.3	1,143.4	3,740.3	4,587.4
Over time
Construction Equipment	-	-	-	-
Rental¹	42.1	60.7	194.3	216.7
Industrial Equipment	167.7	213.7	736.4	870.0
After Sales	-	-	-	-
Total over time	209.8	274.4	930.7	1,086.7
Point in time
Construction Equipment	126.4	203.8	497.3	813.2
Rental	49.2	46.0	166.5	179.9
Industrial Equipment	254.1	303.8	1,006.4	1,245.1
After Sales	293.8	315.8	1,139.4	1,262.5
Totalpoint in time	723.5	869.4	2,809.6	3,500.7
Total	933.3	1,143.8	3,740.3	4,587.4

¹) Part of business area Rental is accounted for applying IFRS 16, Leases.

Alimak Group AB

Interim Report Q4 January – December 2020

NOTE 3. RIGHT-OF-USE ASSETS

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Amounts in MSEK 31 Dec 2020 31 Dec 2019
Right-of-use assets are split into the following categories
Premises 168.9 207.5
Vehicles 31.5 40.1
Equipment 7.5 15.3
Total 207.9 262.9
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The following amounts for Right-of-use assets and Lease liabilities are included in the Income statement.

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Amounts in MSEK Q4 2020 Q4 2019 Jan-Dec 2020 Jan-Dec 2019
Depreciations are included in:
Cost of sales 12.4 10.3 49.6 61.9
Operating expenses 4.8 15.6 24.7 29.1
17.2 25.9 74.3 91.0
Included in Finance net:
Interest expenses 1.6 3.9 8.0 10.5
1.6 3.9 8.0 10.5
Total 18.8 29.8 82.3 101.5
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NOTE 4. FINANCIAL INSTRUMENTS

Amounts in MSEK	Total carrying amount	Total carrying amount
FINANCIAL ASSETS	31 Dec 2020	31 Dec 2019
Derivative financial instruments	6.2	4.5
Other financial receivables	1,010.1	1,262.3
Cash and cash equivalents	225.6	313.6
Total	1,241.9	1,580.4
FINANCIAL LIABILITIES
Derivative financial instruments	5.0	5.3
Interest bearing debts	716.5	1,118.5
Other financial liabilities	653.7	810.4
Total	1,375.2	1,934.2

Fair values are the same as carrying values for all financial assets and liabilities.

Alimak Group AB

Interim Report Q4 January – December 2020

FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE

31 Dec 2020	Level 2
Financial assets
Currencyderivatives	6.2
Total	6.2
Financial liabilities
Currencyderivatives	5.0
Total	5.0
31 Dec 2019	Level 2
Financial assets
Currencyderivatives	4.5
Total	4.5
Financial liabilities
Currencyderivatives	5.3
Total	5.3

Level 1 - quoted prices in active markets for identical financial instruments

Level 2 - inputs other than quoted prices included in level 1 that are observable for the financial instrument, either directly (i.e. as prices) or indirect (i.e. derived from prices).

Level 3 – inputs for the financial instrument that are not based on observable market data (unobservable inputs)

Currency derivatives are valued at fair value by discounting the difference between the contracted forward rate and the rate that can be subscribed for on the balance sheet date for the remaining contract term.

Alimak Group AB

Interim Report Q4 January – December 2020

NOTE 5. ACQUISITIONS

On September 30 Alimak Group acquired the assets of Verta Corporation, an American service provider with a large share of the portfolio consisting of Manntech units. Verta Corporation provides maintenance, parts, inspections and project consultation for BMUs in USA and Canada. The revenue in 2019 amounted to MUSD 3.1 The purchase price is not material relative to Alimak Group’s market capitalization.

In 2019 Alimak Group made one minor acquisition, Dataline i Borås AB.

NOTE 6. ASSETS PLEDGED AND CONTINGENT LIABILITIES

As of December 31, 2020, the maximum potential future payments Alimak Group could be required to make under issued financial guarantees totalled MSEK 361.6 (December 31 2019 477.6) of which MSEK 361.0 (December 31 2019 477.0) refers to indemnity bonds for commitments to customers. Assets pledged totalled MSEK 24.5 (December 31, 2019 21.1).

Interim Report Q4 January – December 2020

Alimak Group AB

FINANCIAL CALENDAR

⎯ The Annual Report for 2020 will be published on March 18, 2021.
⎯ The Interim Report for the first quarter of 2021 will be published April 22, 2021.
⎯ The Annual General Meeting will be held on May 6, 2021 in Stockholm.
⎯ The Interim Report for the second quarter of 2021 will be published July 20, 2021.
⎯ The Interim Report for the third quarter of 2021 will be published October 21, 2021.

Alimak Group's financial calendar is available at www.alimakgroup.com

TELEPHONE CONFERENCE/PRESENTATION

A telephone conference for investors, analysts and financial media will be held at 10.00 CET on Thursday February 11, 2021. CEO Ole Kristian Jødahl and Interim CFO Bernt Ingman will present and comment on the report. The presentation, held in English, can also be followed via audiocast.

To participate by phone – please call: SE: +46 850558359 UK: +44 3333009273 US: +1 8335268395

Link to audiocast:

https://streams.eventcdn.net/alimak/2020q4/

DEFINITIONS

Alimak Group presents certain financial measures that are not defined in the interim report in accordance with IFRS. Alimak Group believes that these measures provide useful supplemental information to investors and the company’s management when they allow evaluation of trends and the company’s performance. As not all companies calculate the financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not be seen as a substitute for measures defined under IFRS. For definitions of key figures that Alimak Group uses, please visit https://www.alimakgroup.com/English/investor-relations/financials/definitions/

For further information, contact:

Mathilda Eriksson, Investor Relations and Group Communications Manager, Phone: +46 (0)8 402 14 41

Bernt Ingman, Interim CFO, Phone +46 (0)8 402 14 40

[email protected]

This information is information that Alimak Group 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 CET on February 11, 2021.

About Alimak Group

Alimak Group is a world-leading provider of vertical access solutions for professional use. Through a global reach covering more than 100 countries, the Group provides products and unmatched service and support solutions leading to improved safety, productivity, resource efficiency, under the brands Alimak, CoxGomyl, Manntech, Avanti and Alimak Service. The Group has an installed base of more than 70,000 elevators, hoists, platforms, service lifts and building maintenance units around the world. Founded in Sweden 1948, the Group has its headquarters in Stockholm, 11 production and assembly facilities in 8 countries and 2,000 employees around the world. www.alimakgroup.com

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Alimak Group — Interim / Quarterly Report 2021

2997_10-k_2021-02-11_87e184cc-d655-4917-9d01-ab1430cff5ab.pdf

Interim Report January – December 2020

Q4

Improved underlying profitability

FOURTH QUARTER

JANUARY – DECEMBER

Comments by the CEO

Establishing the base for profitable growth

Set for margin improvements during 2021

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

Group Performance

FOURTH QUARTER

Alimak Group AB

JANUARY – DECEMBER

FINANCIAL POSITION

EMPLOYEES

SIGNIFICANT EVENTS DURING THE REPORTING PERIOD JANUARY – DECEMBER 2020

Management changes

New CEO appointed

Dividend for 2019

Alimak Group AB

Changes to the Board

Verta acquisition

Launch of the New Heights Programme

Nomination committee appointed

Management changes

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

Dividend for 2020

CFO appointed

FINANCIAL TARGETS AND POLICIES

Construction Equipment

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

Rental

Share of revenue

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

Industrial Equipment

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

After Sales

Order intake & Revenue R12M

EBITA adj. & EBITA margin adj. R12M

DECLARATION

Condensed statement of comprehensive income, Group

Condensed statement of financial position, Group

Condensed statement of changes in equity, Group

Cash flow statement, Group

Key figures

Key figures (cont)

Historical quarterly data 2018 – 2020

Bridge

Condensed Income statement, parent company

Condensed Balance sheet, parent company

Notes

NOTE 1. ACCOUNTING POLICIES

NOTE 2. REVENUE SPLIT

NOTE 3. RIGHT-OF-USE ASSETS

NOTE 4. FINANCIAL INSTRUMENTS

FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE

NOTE 5. ACQUISITIONS

NOTE 6. ASSETS PLEDGED AND CONTINGENT LIABILITIES

Alimak Group AB

FINANCIAL CALENDAR

TELEPHONE CONFERENCE/PRESENTATION

Link to audiocast:

DEFINITIONS

For further information, contact:

About Alimak Group

More from Alimak Group

Alimak Group Interim / Quarterly Report 2021