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Alimak Group Interim / Quarterly Report 2020
2997_ir_2020-07-23_b3e6c912-6f5d-4685-af24-b54c793005d8.pdf
Interim / Quarterly Report
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Alimak Group AB
ALIG, SE0007158910
ALIMAK GROUP
Interim Report
January – June 2020
Challenging quarter with focus on mitigation
- Q2 impacted by COVID-19 on all key performance indicators
- Solid cash following increased emphasis on balance sheet and cash management
- Forward focus on adapting the business to an uncertain market
SECOND QUARTER
- Order intake decreased by 16% to MSEK 962 (1,150) with an organic decrease of 15%
- Revenue decreased by 18% to MSEK 976 (1,193) with an organic decrease of 17%
- EBITA adj. decreased to MSEK 87 (172), margin 8.9% (14.4)
- Result for the period decreased to MSEK 51 (108)
- Earnings per share, basic and diluted, decreased to SEK 0.94 (2.00)
- Cash flow from operations increased to MSEK 123 (106)
JANUARY – JUNE
- Order intake decreased by 10% to MSEK 2,029 (2,251) with an organic decrease of 10%
- Revenue decreased by 20% to MSEK 1,892 (2,360) with an organic decrease of 20%
- EBITA adj. decreased to MSEK 166 (325), margin 8.8% (13.8)
- Result for the period decreased to MSEK 92 (207)
- Earnings per share, basic and diluted, decreased to SEK 1.70 (3.82)
- Cash flow from operations was MSEK 136 (142)
- Leverage (Net Debt/EBITDA) at June 30, 2020 was 1.71 (1.33 as of December 31, 2019)
| KEY FIGURES, GROUP | Q2 2020 | Q2 2019 | Δ | Jan-Jun 2020 | Jan-Jun 2019 | Δ |
|---|---|---|---|---|---|---|
| Order intake, MSEK | 962.4 | 1,150.0 | -16% | 2,029.2 | 2,250.7 | -10% |
| Revenue, MSEK | 975.7 | 1,193.5 | -18% | 1,891.5 | 2,360.0 | -20% |
| EBITA adj, MSEK¹ | 86.6 | 172.0 | -50% | 165.9 | 325.4 | -49% |
| EBITA margin adj, %¹ | 8.9% | 14.4% | 8.8% | 13.8% | ||
| EBITA, MSEK | 86.6 | 171.8 | -50% | 165.8 | 322.8 | -49% |
| EBITA margin, % | 8.9% | 14.4% | 8.8% | 13.7% | ||
| EBIT, MSEK | 74.1 | 161.5 | -54% | 141.7 | 301.4 | -53% |
| EBIT margin, % | 7.6% | 13.5% | 7.5% | 12.8% | ||
| Result for the period, MSEK | 50.6 | 108.2 | -53% | 92.0 | 206.7 | -55% |
| Earnings per share, SEK | 0.94 | 2.00 | -53% | 1.70 | 3.82 | -55% |
| Cash flow from operations, MSEK | 123.5 | 106.2 | 16% | 135.6 | 142.1 | -5% |
| Net debt/EBITDA, ratio | 1.71 | 1.90 | -10% | 1.71 | 1.90 | -10% |
¹ Before items affecting comparability
Alimak Group AB
Interim Report Q2 January – June 2020
Comments by the CEO
The effects of the COVID-19 pandemic continued to impact Alimak Group also in the second quarter of 2020. We saw further impact from restrictions on travel and customer site access, severely in the beginning of the quarter but improving in the latter part as more and more markets opened up. Several of our business areas are facing continued uncertainty in their end-markets as customers delay investment decisions in the current business climate.
We estimate that slightly more than half of the decrease in revenue is related to the global pandemic and thereby the rest from a lower order backlog.
To counter the significant drop in order intake and revenue, focus has been on reducing cost and managing our balance sheet to mitigate the impact on our results and cash flow. As a result of this, we have managed to deliver cash flow from operations of MSEK 123, above Q2 last year of MSEK 106.
On the cost side, our focus in the last months has mainly been on temporary savings, supported by governmental programmes. However, the world's economic development still remains uncertain, especially in the US which is an important market for the Group. We will ensure to be ready to act on as we see things develop further, including taking more permanent measures.
Critical for the future is also to ensure technology leadership in our industry and I am pleased to see that we have a solid pipeline of R&D projects which we continue to run at full speed also in these turbulent times.
I want to thank the Group's employees for their efforts during this challenging quarter. The number one priority has been the safety of people and all employees have demonstrated a great ability to adopt to this new reality and at the same time managing the business.
My first weeks as CEO
In addition to managing the immediate impact on the business, my first priority as new CEO of Alimak Group has been to get to know the Group, understand how it operates and meeting and talking to as many people as possible.
We have also kicked off a business review where I have four critical areas that is at the top of the agenda: Customer Focus, Technology Leadership, Delivering Shareholder Value and People & Culture. My ambition is to present the findings in a couple of months' time.
Alimak Group is a global player with leading brands, in a market where mega trends like urbanisation, digitalisation and safety regulation support an underlying growth. With the Group's solid position, we are well set to capitalise on this and build an even bigger and stronger Group for the future.
I am very happy and proud to have been given this opportunity to join the Group and its amazing people. I see a lot of potential to realise going forward.
Ole Kristian Jødahl, President and CEO
Order intake & Revenue R12M
EBITA adj. & EBITA margin adj. R12M
Alimak Group AB
Interim Report Q2 January – June 2020
Group Performance
Share of revenue
Industrial
■ Construction
■ Retail
■ After Sales
Share of EBITA adj.
Industrial
■ Retail
■ After Sales
SECOND QUARTER
Order intake in the quarter decreased by 16% to MSEK 962 (1,150) with an organic decrease of 15%. Rental increased its order intake while the other business areas decreased. Industrial Equipment accounted for MSEK 141 of the total decrease of MSEK 188.
Revenue decreased by 18% to MSEK 976 (1,193) with an organic decrease of 17%. All business areas reported lower revenues than the prior year. Construction Equipment's reduction in revenue was MSEK 134 in absolute terms, representing 61% of the Group's total decline. Both Construction Equipment and Industrial Equipment improved revenue sequentially from the first quarter this year.
EBITA adj. for the quarter was MSEK 87 (172), corresponding to a margin of 8.9% (14.4). A decline in gross margin as a result of lower revenues was the main reason for the decrease. Operating expenses were reduced. All business areas, except After Sales, improved the result from first quarter this year.
Non-recurring items amounted to MSEK 0 (0).
Amortisation in the quarter amounted to MSEK 13 (10) largely related to the acquired businesses. The increase is related to the ERP system for which amortisation started Q1 this year.
EBIT in the quarter amounted to MSEK 74 (161).
The financial net was MSEK -10 (-17). The interest net was MSEK -5 (-9), leases MSEK -2 (-1) and the remaining largely related to currency fluctuations.
Tax expense for the quarter was MSEK 14 (36), a tax rate of 21% (25).
Result for the period amounted to MSEK 51 (108) where the decrease came from the lower operating result. EPS thereby decreased to SEK 0.94 (2.00) for the quarter.
| ORDER INTAKE | Q2 | Jan-Jun | ||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Orders, MSEK | 962.4 | 1,150.0 | 2,029.2 | 2,250.7 |
| Change, MSEK | -187.7 | -32.4 | -221.5 | -52.4 |
| Change, % | -16.3% | -2.7% | -9.8% | -2.3% |
| Whereof: | ||||
| Volume & price, % | -15.0% | -6.8% | -10.3% | -7.5% |
| Exchange rate, % | -1.3% | 4.1% | 0.5% | 5.2% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| REVENUE | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| Revenue, MSEK | 975.7 | 1,193.5 | 1,891.5 | 2,360.0 |
| Change, MSEK | -217.8 | 81.9 | -468.5 | 288.8 |
| Change, % | -18.2% | 7.4% | -19.9% | 13.9% |
| Whereof: | ||||
| Volume & price, % | -17.4% | 3.0% | -20.3% | 7.9% |
| Exchange rate, % | -0.9% | 4.4% | 0.5% | 6.1% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| EBIT & EBITA adj.1 | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| EBIT, MSEK | 74.1 | 161.5 | 141.7 | 301.4 |
| EBIT margin, % | 7.6% | 13.5% | 7.5% | 12.8% |
| EBITA adj, MSEK | 86.6 | 172.0 | 165.9 | 325.4 |
| EBITA margin adj, % | 8.9% | 14.4% | 8.8% | 13.8% |
| Change, MSEK | -85.4 | 23.3 | -159.6 | 65.4 |
| Change, % | -49.7% | 15.6% | -49.0% | 25.1% |
| Whereof: | ||||
| Volume & price, % | -49.7% | 13.9% | -49.6% | 21.5% |
| Exchange rate, % | 0.0% | 1.8% | 0.6% | 3.7% |
| Acquisition & divestment, | 0.0% | 0.0% | 0.0% | 0.0% |
1 Before items affecting comparability
Alimak Group AB
Interim Report Q2 January – June 2020
Cash flow from operations in the quarter was MSEK 123 (106). The lower operating result was more than offset by further reduction in working capital of MSEK 23 (-59). The increase in operating receivables is a reflection of revenue heavily weighted to the latter part of the quarter.
Net investments in fixed assets in the quarter totalled MSEK 16 (31), of which MSEK 12 was related to additions to the rental fleet.
Capitalised investments in intangibles amounted to MSEK 3 (7), related to the new Field Service Management systems.
Net additions to borrowings amounted to MSEK 9 (164) used to finance the dividend paid of MSEK 94 (149).
JANUARY – JUNE
Order intake during the period decreased by 10% to MSEK 2,029 (2,251) with an organic decrease of 10%. Industrial Equipment represents MSEK 176 of the total contraction of MSEK 221. Construction Equipment and After Sales also had lower orders booked while Rental improved the intake by MSEK 23.
Revenue decreased by 20% to MSEK 1,892 (2,360) with an organic decrease of 20%. 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 166 (325), corresponding to a margin of 8.8% (13.8). Compared to last year, all business areas had lower result and margin.
Non-recurring items in the period amounted to MSEK 0 (-3).
Amortisation in the period amounted to MSEK 24 (21) largely related to acquired businesses. The increase in amortisation relates to capitalised investments for an ERP system.
EBIT for the period amounted to MSEK 142 (301).
The financial net was MSEK -24 (-27) whereas interest net was MSEK -10 (-17), the impact from IFRS 16 was MSEK -4 (-3) and the remaining largely derived from currency impact.
Tax expense for the period was MSEK 26 (68) and the tax rate was 22% (25%).
Result for the period amounted to MSEK 92 (207) where the decrease relates to the lower operating result. EPS decreased to SEK 1.70 (3.82).
Cash flow from operations in the period was MSEK 136 (142) subsequent decrease in working capital of MSEK 63 (-171).
Net investments in fixed assets in the period totalled MSEK 33 (44). The majority of investments relate to
additions in the rental fleet of MSEK 18 (23) 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 12 (11).
Net repayment of borrowings amounted to MSEK 65 (-111).
Dividend of MSEK 94 (149) was paid out in May.
FINANCIAL POSITION
As of June 30, 2020, net debt totalled MSEK 1,017 (1,007 as of December 31, 2019).
The equity ratio was 59.5% (57.4 as of December 31, 2019) and the leverage (net debt/EBITDA) was 1.71 (1.33 as of December 31, 2019).
EMPLOYEES
As of June 30, 2020, there were 2,136 (2,344) FTEs in the Group. The reduction mainly stems from production sites in China and Sweden.
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD JANUARY – JUNE 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 succeeds Tormod Gunleiksrud, who has 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 of Directors, 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 per share for the financial year 2019.
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
Alimak Group AB
Interim Report Q2 January – June 2020
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.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Nothing to report.
FINANCIAL TARGETS AND POLICIES
Please refer to the latest Annual Report and alimakgroup.com.
Alimak Group AB
Interim Report Q2 January – June 2020
Construction Equipment
Share of revenue
Share of EBITA adj.
Construction Equipment reported an order intake decrease of 15%, down 15% organically, to MSEK 140 (164). COVID-19 impacted the sector with increased uncertainty, leading many customers to delay investment decisions and preferring to rent instead of buying. Rental company customers are increasingly short term focused, investing in equipment only when projects are confirmed and their current fleet cannot cope with the demand.
Geographically, the quarter included a clear improvement in the Nordics and the UK, continuing the positive trend from Q1, while the US and APAC were most affected by the market uncertainty.
Revenue improved sequentially since Q1, but decreased by 49%, down 50% organically, to MSEK 137 (271) compared to the previous year. Q2 2019 recorded an all-time high number including large deliveries to the US. The decrease also relates to the low backlog following low order intake during the past few quarters.
EBITA adj. was MSEK 14 (50), corresponding to a margin of 10.1% (18.5). This was the result of the lower volumes and less favourable product mix though cost control countered some of the margin effect.
| ORDER INTAKE | Q2 | Jan-Jun | ||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Orders, MSEK | 139.8 | 164.3 | 319.1 | 376.2 |
| Change, MSEK | -24.5 | -61.6 | -57.1 | -48.7 |
| Change, % | -14.9% | -27.3% | -15.2% | -11.5% |
| Whereof: | ||||
| Volume & price, % | -14.8% | -30.4% | -16.5% | -16.6% |
| Exchange rate, % | -0.1% | 3.2% | 1.3% | 5.1% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| REVENUE | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| Revenue, MSEK | 137.1 | 270.9 | 261.1 | 478.7 |
| Change, MSEK | -133.9 | 86.2 | -217.6 | 117.2 |
| Change, % | -49.4% | 46.7% | -45.5% | 32.4% |
| Whereof: | ||||
| Volume & price, % | -49.9% | 39.5% | -46.6% | 24.1% |
| Exchange rate, % | 0.5% | 7.1% | 1.2% | 8.3% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| EBITA adj.1 | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| EBITA adj, MSEK | 13.9 | 50.2 | 25.9 | 80.4 |
| EBITA margin adj, % | 10.1% | 18.5% | 9.9% | 16.8% |
| Change, MSEK | -36.3 | 19.7 | -54.5 | 33.2 |
| Change, % | -72.3% | 64.7% | -67.8% | 70.2% |
| Whereof: | ||||
| Volume & price, % | -73.1% | 67.5% | -67.9% | 70.2% |
| Exchange rate, % | 0.8% | -2.9% | 0.1% | 0.0% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
1 Before items affecting comparability
Order intake & Revenue R12M
EBITA adj. & EBITA margin adj. R12M
Alimak Group AB
Interim Report Q2 January – June 2020
Rental
Share of revenue
Share of EBITA adj.
Strong bookings in Australia driven by shifts from buy to rent for larger projects and good momentum for Benelux in the quarter led to an order intake increase of 26%, up by 29% organically, to MSEK 112 (89).
Revenue decreased by 15%, down 14% organically, to MSEK 83 (99). The COVID-19 impact was noticed mainly in France and Australia with lower revenues following lock downs. Australia, Germany and France all faced restrictions from accessing machines during the quarter. The countries are now back in operation and France reported a strong June. No projects were cancelled, but the business area reported some delays.
EBITA adj. of MSEK 12 (15), corresponding to a margin of 13.7% (14.8), strong given the generally lower volumes and loss of service revenue in some markets.
| ORDER INTAKE | Q2 | Jan-Jun | ||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Orders, MSEK | 111.8 | 88.5 | 224.4 | 178.9 |
| Change, MSEK | 23.3 | -25.6 | 45.5 | -37.6 |
| Change, % | 26.3% | -22.4% | 25.4% | -17.4% |
| Whereof: | ||||
| Volume & price, % | 28.5% | -24.2% | 26.2% | -19.7% |
| Exchange rate, % | -2.2% | 1.7% | -0.7% | 2.4% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| REVENUE | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| Revenue, MSEK | 83.9 | 98.9 | 170.5 | 190.4 |
| Change, MSEK | -15.0 | 11.6 | -19.9 | 22.7 |
| Change, % | -15.2% | 13.3% | -10.4% | 13.5% |
| Whereof: | ||||
| Volume & price, % | -13.8% | 11.2% | -9.9% | 10.5% |
| Exchange rate, % | -1.4% | 2.1% | -0.5% | 3.0% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| EBITA adj.1 | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| EBITA adj, MSEK | 11.5 | 14.6 | 21.4 | 26.5 |
| EBITA margin adj, % | 13.7% | 14.8% | 12.6% | 13.9% |
| Change, MSEK | -3.1 | 2.4 | -5.1 | 5.0 |
| Change, % | -21.4% | 19.8% | -19.4% | 23.0% |
| Whereof: | ||||
| Volume & price, % | -20.7% | 22.8% | -18.6% | 23.0% |
| Exchange rate, % | -0.7% | -3.1% | -0.8% | 6 |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
1 Before items affecting comparability
Order intake & Revenue R12M
EBITA adj. & EBITA margin adj. R12M
Alimak Group AB
Interim Report Q2 January – June 2020
Industrial Equipment
Share of revenue
Share of EBITA adj.
Order intake decreased by 26%, down 24% organically, to MSEK 410 (551). All business units were impacted by COVID-19, especially in the US. The largest impact on order intake came from BMU which faced delayed project award dates from customers across most regions. Wind was the least affected and saw activity in China beginning to recover in April following a low Q1.
Revenue decrease of 3%, down 2% organically, to MSEK 479 (493). Stable development was recorded by all business units except BMU. The latter was due to backlog scheduling delays arising from construction site closures and a closed factory in the beginning of April.
EBITA adj. of MSEK 7 (17), corresponding to a margin of 1.5% (3.5), which was the result of lower volumes and factory underutilisation. In light of the lower volumes, temporary redundancy plans have been put in place in several factories. Furthermore, an increased focus on balance sheet management, led to a conservative view of inventory and projects which adversely impacted the business area's margins in the quarter.
| ORDER INTAKE | Q2 | Jan-Jun | ||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Orders, MSEK | 410.3 | 551.1 | 852.0 | 1,028.3 |
| Change, MSEK | -140.8 | 12.0 | -176.3 | -44.0 |
| Change, % | -25.5% | 2.2% | -17.1% | -4.1% |
| Whereof: | ||||
| Volume & price, % | -24.2% | -1.9% | -17.6% | -9.2% |
| Exchange rate, % | -1.3% | 4.1% | 0.4% | 5.1% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| REVENUE | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| Revenue, MSEK | 479.2 | 492.7 | 892.0 | 1,062.8 |
| Change, MSEK | -13.5 | -30.4 | -170.8 | 111.0 |
| Change, % | -2.7% | -5.8% | -16.1% | 11.7% |
| Whereof: | ||||
| Volume & price, % | -1.6% | -6.5% | -16.4% | 5.8% |
| Exchange rate, % | -1.1% | 0.7% | 0.4% | 5.8% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| EBITA adj.1 | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| EBITA adj, MSEK | 7.2 | 17.2 | 5.7 | 50.7 |
| EBITA margin adj, % | 1.5% | 3.5% | 0.6% | 4.8% |
| Change, MSEK | -10.0 | 3.3 | -45.0 | 25.9 |
| Change, % | -58.3% | 23.4% | -88.7% | 104.2% |
| Whereof: | ||||
| Volume & price, % | -57.7% | 28.0% | -92.2% | 100.3% |
| Exchange rate, % | -0.6% | -4.7% | 3.5% | 3.9% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
1 Before items affecting comparability
Order intake & Revenue R12M
EBITA adj. & EBITA margin adj. R12M
Alimak Group AB
Interim Report Q2 January – June 2020
After Sales
Share of revenue
Share of EBITA adj.
After Sales was the business area with the biggest impact from COVID-19 in Q2, particularly in April, as lockdowns restricted visits to customer sites.
Order intake decreased by 13%, down 12% organically, to MSEK 300 (346). Good order intake in Australia in the quarter while the US was weaker given the downturn to the overall economy and impact from widespread lockdowns.
Revenue decrease of 17%, down 16% organically, to MSEK 276 (331) following lockdowns. Conditions improved in May and June, especially in Europe as some markets started to open up but uncertainty remains, especially in the US.
EBITA adj. of MSEK 54 (90) corresponding to a margin of 19.6% (27.2). Furlough schemes have been utilised where possible to reduce cost, but the business area still reported underutilisation of resources. The margin was also an effect of mix, with a larger share of revenue coming from Wind and BMU customers than the prior year.
| ORDER INTAKE | Q2 | Jan-Jun | ||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Orders, MSEK | 300.4 | 346.1 | 633.8 | 667.3 |
| Change, MSEK | -45.7 | 42.8 | -33.5 | 77.8 |
| Change, % | -13.2% | 14.1% | -5.0% | 13.2% |
| Whereof: | ||||
| Volume & price, % | -11.8% | 8.5% | -5.6% | 6.7% |
| Exchange rate, % | -1.4% | 5.6% | 0.6% | 6.5% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| REVENUE | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| Revenue, MSEK | 275.6 | 331.0 | 567.9 | 628.2 |
| Change, MSEK | -55.4 | 14.6 | -60.3 | 37.9 |
| Change, % | -16.7% | 4.6% | -9.6% | 6.4% |
| Whereof: | ||||
| Volume & price, % | -15.9% | -0.2% | -10.3% | 0.4% |
| Exchange rate, % | -0.9% | 4.8% | 0.7% | 6.0% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| EBITA adj.1 | Q2 | Jan-Jun | ||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |
| EBITA adj. MSEK | 54.0 | 89.9 | 112.8 | 167.8 |
| EBITA margin adj, % | 19.6% | 27.2% | 19.9% | 26.7% |
| Change, MSEK | -35.9 | -2.0 | -54.9 | 1.4 |
| Change, % | -39.9% | -2.2% | -32.7% | 0.8% |
| Whereof: | ||||
| Volume & price, % | -40.1% | 2.4% | -33.5% | 0.8% |
| Exchange rate, % | 0.1% | -4.6% | 0.8% | 0.0% |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
1 Before items affecting comparability
Order intake & Revenue R12M
EBITA adj. & EBITA margin adj. R12M
Alimak Group AB
Interim Report Q2 January – June 2020
DECLARATION
The Board of Directors and 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, 22 July 2020
Alimak Group AB (publ) corporate identity number 556714-1857
| Johan Hjertonsson | Petra Einarsson | Helena Nordman-Knutson |
|---|---|---|
| Chairman of the Board | Board member | Board member |
| Tomas Carlsson | Christina Hallin | Sven Törnkvist |
| Board member | Board member | Board member |
| Örjan Fredriksson | Greger Larsson | |
| Employee representative | Employee representative | |
| 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 Q2 January – June 2020
11
Condensed statement of comprehensive income, Group
| Amounts in MSEK | Note | Q2 2020 | Q2 2019 | Jan-Jun 2020 | Jan-Jun 2019 |
|---|---|---|---|---|---|
| Revenue | 2 | 975.7 | 1,193.5 | 1,891.5 | 2,360.0 |
| Cost of sales | -662.4 | -781.7 | -1,287.0 | -1,573.6 | |
| Gross profit | 313.3 | 411.8 | 604.5 | 786.4 | |
| Operating expenses | -239.2 | -250.3 | -462.7 | -485.0 | |
| Operating profit (EBIT) | 74.1 | 161.5 | 141.7 | 301.4 | |
| Financial net | -9.8 | -16.9 | -23.8 | -26.5 | |
| Profit before tax (EBT) | 64.3 | 144.6 | 117.9 | 274.9 | |
| Income tax | -13.7 | -36.4 | -25.9 | -68.2 | |
| Result for the period | 50.6 | 108.2 | 92.0 | 206.7 | |
| Attributable to owners of the parent company | 50.6 | 108.2 | 92.0 | 206.7 | |
| Earnings per share, basic and diluted, SEK | 0.94 | 2.00 | 1.70 | 3.82 | |
| OTHER COMPREHENSIVE INCOME | |||||
| Items that will not be reclassified to net profit for the period | |||||
| Remeasurements of defined benefit pension plans | -3.0 | -7.8 | -12.4 | -23.0 | |
| Income tax relating to remeasurements of pension plans | 0.7 | 1.4 | 2.7 | 5.5 | |
| Total | -2.3 | -6.4 | -9.7 | -17.5 | |
| Items that may be reclassified to net profit for the period | |||||
| Forreign exchange translation differences | -173.8 | 24.0 | -24.9 | 82.5 | |
| Change in fair value of cash flow hedges | 0.6 | 13.5 | 4.1 | 2.0 | |
| Income tax relating to change in fair value of cash flow hedges | -0.1 | -3.5 | -1.0 | -0.4 | |
| Total | -173.3 | 34.0 | -21.8 | 84.1 | |
| Other comprehensive income | -175.6 | 27.6 | -31.5 | 66.6 | |
| Total comprehensive income | -125.0 | 135.8 | 60.5 | 273.3 | |
| Attributable to owners of the parent company | -125.0 | 135.8 | 60.5 | 273.3 |
Alimak Group AB
Interim Report Q2 January – June 2020
12
Condensed statement of financial position, Group
| Amounts in MSEK | Note | 30 Jun 2020 | 30 Jun 2019 | 31 Dec 2019 |
|---|---|---|---|---|
| ASSETS | ||||
| Goodwill and other Intangible assets | 2,969.4 | 3,007.1 | 2,988.4 | |
| Property, plant and and equipment | 369.1 | 371.1 | 368.9 | |
| Right-of-use assets | 3 | 231.0 | 326.3 | 262.9 |
| Financial and other non-current assets | 211.0 | 163.5 | 177.4 | |
| Total non-current assets | 3,780.5 | 3,868.0 | 3,797.6 | |
| Inventories | 602.6 | 639.5 | 613.3 | |
| Contract assets | 337.7 | 292.0 | 357.9 | |
| Trade receivables | 862.1 | 1,024.0 | 966.0 | |
| Other receivables and assets | 210.7 | 262.9 | 254.5 | |
| Prepaid expenses and accrued income | 77.3 | 84.2 | 57.8 | |
| Short term investments | 42.8 | 30.1 | 56.2 | |
| Cash and cash equivalents | 221.8 | 327.0 | 313.6 | |
| Total current assets | 2,355.0 | 2,659.7 | 2,619.3 | |
| TOTAL ASSETS | 6,135.5 | 6,527.7 | 6,416.9 | |
| EQUITY AND LIABILITIES | ||||
| Shareholders equity | 3,651.0 | 3,534.9 | 3,684.2 | |
| Long-term borrowings | 941.9 | 1,285.5 | 1,034.5 | |
| Lease liability | 178.4 | 294.9 | 202.9 | |
| Other long term liabilities | 374.8 | 374.6 | 350.6 | |
| Total non-current liabilities | 1,495.1 | 1,955.0 | 1,588.0 | |
| Short-term borrowings | 104.0 | 65.3 | 84.0 | |
| Lease liability | 58.8 | 31.9 | 64.1 | |
| Contract liabilities | 89.1 | 39.5 | 99.4 | |
| Trade payables | 303.5 | 346.6 | 336.7 | |
| Other current liabilities | 434.0 | 554.5 | 560.5 | |
| Total current liabilities | 989.4 | 1,037.8 | 1,144.7 | |
| TOTAL EQUITY AND LIABILITIES | 6,135.5 | 6,527.7 | 6,416.9 |
Alimak Group AB
Interim Report Q2 January – June 2020
13
Condensed statement of changes in equity, Group
| Amounts in MSEK | Share capital | Other paid-in capital | Translation reserve | Hedging reserve | Retained earnings and profit for the period | Total equity |
|---|---|---|---|---|---|---|
| Opening balance, 1 Jan 2019 | 1.1 | 2,938.7 | 161.9 | -2.0 | 310.0 | 3,409.7 |
| Result for the period | - | - | - | - | 206.7 | 206.7 |
| Changes of fair value | - | - | - | 2.0 | - | 2.0 |
| Revaluation of pension plans | - | - | - | - | -23.0 | -23.0 |
| Tax attributable to revaluations | - | - | - | -0.4 | 5.5 | 5.1 |
| Translation difference | - | - | 82.5 | - | - | 82.5 |
| Total comprehensive income | - | - | 82.5 | 1.6 | 189.2 | 273.3 |
| Dividend | - | - | - | - | -148.7 | -148.7 |
| Share based payments | - | 0.6 | - | - | - | 0.6 |
| Closing balance, 30 Jun 2019 | 1.1 | 2,939.3 | 244.4 | -0.4 | 350.5 | 3,534.9 |
| Result for the period | - | - | - | - | 187.3 | 187.3 |
| Changes of fair value | - | - | - | -3.5 | - | -3.5 |
| Revaluation of pension plans | - | - | - | - | 8.8 | 8.8 |
| Tax attributable to revaluations | - | - | - | 0.7 | -2.7 | -2.0 |
| Translation difference | - | - | -16.6 | - | - | -16.6 |
| Total comprehensive income | - | - | -16.6 | -2.8 | 193.4 | 174.0 |
| Repurchase of Treasury shares | - | -25.4 | - | - | - | -25.4 |
| Share based payments | - | 0.7 | - | - | - | 0.7 |
| 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 | - | - | - | - | 92.0 | 92.0 |
| Changes of fair value | - | - | - | 4.1 | - | 4.1 |
| Revaluation of pension plans | - | - | - | -1.0 | -12.4 | -13.4 |
| Tax attributable to revaluations | - | - | - | - | 2.7 | 2.7 |
| Translation difference | - | - | -24.8 | - | - | -24.8 |
| Total comprehensive income | - | - | -24.8 | 3.1 | 82.3 | 60.6 |
| Dividend | - | - | - | - | -94.3 | -94.3 |
| Share based payments | - | 0.5 | - | - | - | 0.5 |
| Closing balance, 30 Jun 2020 | 1.1 | 2,915.1 | 203.0 | -0.1 | 531.9 | 3,651.0 |
Alimak Group AB
Interim Report Q2 January – June 2020
Cash flow statement, Group
| Amounts in MSEK | Q2 2020 | Q2 2019 | Jan-Jun 2020 | Jan-Jun 2019 |
|---|---|---|---|---|
| Operating activities | ||||
| Profit before tax | 64.3 | 144.6 | 117.9 | 274.9 |
| Depreciation, amortisation and impairment losses | 44.7 | 49.1 | 92.6 | 100.1 |
| Other non-cash items | 7.1 | -4.1 | 3.6 | 1.6 |
| Income taxes paid | -15.6 | -24.8 | -141.5 | -63.8 |
| Cashflow before change in working capital | 100.5 | 164.8 | 72.6 | 312.8 |
| Change in working capital | ||||
| Change in inventory | 36.1 | 49.0 | -3.9 | 60.2 |
| Change in contract assets | -5.5 | 28.4 | 13.7 | -37.7 |
| Change in operating receivables | -65.2 | 40.3 | 71.3 | -13.1 |
| Change in operating liabilities | 57.6 | -176.3 | -18.1 | -180.1 |
| Cash flow from working capital | 23.0 | -58.6 | 63.0 | -170.7 |
| Cash flow from operating activities | 123.5 | 106.2 | 135.6 | 142.1 |
| Investing activities | ||||
| Purchase of subsidiaries net of cash acquired | - | -16.6 | - | -16.6 |
| Purchase of intangible fixed assets | -3.1 | -7.0 | -11.5 | -11.0 |
| Purchase of property, plant and equipment | -16.5 | -31.4 | -33.3 | -43.7 |
| Net change in short term financial investments | 18.1 | -4.0 | 18.2 | -23.8 |
| Cash flow from investing activities | -1.5 | -59.0 | -26.6 | -100.1 |
| Financing activities | ||||
| Proceeds from borrowings | 91.6 | 210.0 | 138.0 | 210.0 |
| Repayment of borrowings | -82.6 | -46.5 | -202.6 | -99.3 |
| Repayment of Lease liability | -16.9 | -22.9 | -36.7 | -45.5 |
| Dividends paid | -94.3 | -148.7 | -94.2 | -148.7 |
| Cash flow from financing activities | -102.2 | -6.1 | -195.5 | -83.5 |
| Net change in cash and cash equivalents | 19.8 | 39.1 | -86.5 | -41.5 |
| Cash & cash equivalents at beginning of period | 215.4 | 289.0 | 313.6 | 355.6 |
| Exchange rate differences in cash and cash equivalents | -13.4 | -1.1 | -5.3 | 12.9 |
| Cash & cash equivalents at end of period | 221.8 | 327.0 | 221.8 | 327.0 |
Alimak Group AB
Interim Report Q2 January – June 2020
15
Key figures
| Quarterly data | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Order intake, MSEK | 962.4 | 1,066.8 | 1,073.3 | 1,039.3 | 1,150.0 | 1,100.7 |
| Revenue, MSEK | 975.7 | 915.8 | 1,143.4 | 1,084.0 | 1,193.5 | 1,166.5 |
| EBITDA, MSEK | 118.8 | 115.5 | 172.4 | 188.6 | 210.6 | 190.9 |
| EBITA adj, MSEK | 86.6 | 79.3 | 151.5 | 152.0 | 172.0 | 153.4 |
| EBITA margin adj, % | 8.9% | 8.7% | 13.2% | 14.0% | 14.4% | 13.2% |
| EBITA, MSEK | 86.6 | 79.3 | 133.7 | 151.8 | 171.8 | 151.0 |
| EBITA margin, % | 8.9% | 8.7% | 11.7% | 14.0% | 14.4% | 12.9% |
| EBIT, MSEK | 74.1 | 67.6 | 122.9 | 140.8 | 161.5 | 139.9 |
| EBIT, % | 7.6% | 7.4% | 10.7% | 13.0% | 13.5% | 12.0% |
| Result for the period, MSEK | 50.6 | 41.4 | 87.8 | 99.5 | 108.2 | 98.5 |
| Total comprehensive income, MSEK | -125.0 | 185.5 | 6.9 | 167.1 | 135.8 | 137.5 |
| Cash flow from operations, MSEK | 123.5 | 12.1 | 225.7 | 134.2 | 106.2 | 35.9 |
| Cash flow for the period, MSEK | 19.8 | -106.3 | 75.5 | -89.5 | 39.1 | -80.7 |
| Cash flow from operations/EBITDA | 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 |
| Average number of shares, thousands | 54,157.9 | 54,157.9 | 54,157.9 | 54,157.9 | 54,157.9 | 54,157.9 |
| Earnings per share, SEK | 0.94 | 0.76 | 1.62 | 1.83 | 2.00 | 1.82 |
| Cash flow per share, SEK | 0.37 | -1.96 | 1.39 | -1.65 | 0.72 | -1.49 |
| Equity per share, SEK | 67.41 | 71.50 | 68.03 | 67.89 | 65.27 | 65.51 |
| Total assets, MSEK | 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 | 221.8 | 215.4 | 313.6 | 245.2 | 327.0 | 289.0 |
| Equity, MSEK | 3,651.0 | 3,870.2 | 3,684.2 | 3,676.9 | 3,534.9 | 3,547.7 |
| Capital employed, MSEK | 4,668.0 | 4,915.5 | 4,691.5 | 4,938.5 | 4,855.4 | 4,781.5 |
| Net debt, MSEK | 1,017.0 | 1,045.3 | 1,007.3 | 1,261.5 | 1,320.5 | 1,233.8 |
| Net debt excl. Lease liability (IFRS 16), MSEK | 779.8 | 785.4 | 740.3 | 929.9 | 993.7 | 871.3 |
| Equity ratio, % | 59.5% | 60.6% | 57.4% | 56.2% | 54.2% | 54.4% |
| Return on equity, % | 7.8% | 9.1% | 11.1% | 13.0% | 12.3% | 11.5% |
| Return on capital employed goodwill excluded, % | 16.9% | 20.0% | 26.4% | 25.7% | 23.6% | 25.1% |
| Return on capital employed, % | 8.5% | 10.2% | 12.6% | 12.5% | 11.7% | 11.7% |
| Interest coverage ratio, times | 7.98 | 6.99 | 9.31 | 13.79 | 13.43 | 12.35 |
| Net debt/EBITDA ratio | 1.71 | 1.52 | 1.33 | 1.68 | 1.90 | 1.94 |
| Net debt excl. Lease liability/EBITDA ratio | 1.31 | 1.14 | 0.97 | 1.24 | 1.43 | 1.37 |
| Number of employees | 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 Q2 January – June 2020
Key figures (cont)
| Rolling 4 Quarters | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Order intake, MSEK | 4,141.8 | 4,329.4 | 4,363.2 | 4,504.4 | 4,568.7 | 4,601.1 |
| Revenue, MSEK | 4,118.9 | 4,336.7 | 4,587.4 | 4,594.2 | 4,609.2 | 4,527.2 |
| EBITA adj, MSEK | 469.4 | 554.8 | 628.9 | 636.0 | 619.9 | 596.6 |
| EBITA margin adj, % | 11.4% | 12.8% | 13.7% | 13.8% | 13.4% | 13.2% |
| EBIT, MSEK | 405.4 | 492.8 | 565.1 | 575.9 | 540.0 | 499.2 |
| EBIT, % | 9.9% | 11.4% | 12.3% | 12.5% | 11.7% | 11.0% |
| Result for the period, MSEK | 279.3 | 336.9 | 394.0 | 449.9 | 418.9 | 389.7 |
| Total comprehensive income, MSEK | 234.5 | 495.3 | 447.3 | 593.3 | 441.4 | 343.7 |
| Cash flow from operations, MSEK | 495.5 | 478.4 | 502.1 | 424.2 | 402.8 | 305.8 |
| Cash flow for the period, MSEK | -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 | 2020 | 2019 | 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
| Order Intake | |||||||||
| Construction Equipment | 140 | 179 | 129 | 128 | 164 | 212 | 248 | 143 | 226 |
| Rental | 112 | 113 | 86 | 85 | 89 | 90 | 113 | 61 | 114 |
| Industrial Equipment | 410 | 442 | 559 | 523 | 551 | 477 | 600 | 585 | 539 |
| After Sales | 300 | 333 | 299 | 302 | 346 | 321 | 254 | 314 | 303 |
| Total | 962 | 1,067 | 1,073 | 1,039 | 1,150 | 1,101 | 1,214 | 1,104 | 1,182 |
| Revenue | |||||||||
| Construction Equipment | 137 | 124 | 204 | 131 | 271 | 208 | 176 | 176 | 185 |
| Rental | 84 | 87 | 107 | 100 | 99 | 91 | 91 | 95 | 87 |
| Industrial Equipment | 479 | 413 | 517 | 535 | 493 | 570 | 580 | 537 | 523 |
| After Sales | 276 | 292 | 316 | 319 | 331 | 297 | 303 | 290 | 316 |
| Total | 976 | 916 | 1,143 | 1,084 | 1,193 | 1,167 | 1,150 | 1,099 | 1,112 |
| EBITA adj. | |||||||||
| Construction Equipment | 14 | 12 | 31 | 19 | 50 | 30 | 34 | 27 | 31 |
| Rental | 12 | 10 | 16 | 15 | 15 | 12 | 14 | 15 | 12 |
| Industrial Equipment | 7 | -1 | 25 | 32 | 17 | 34 | 32 | 18 | 14 |
| After Sales | 54 | 59 | 79 | 85 | 90 | 78 | 78 | 76 | 92 |
| Total | 87 | 79 | 151 | 152 | 172 | 153 | 159 | 136 | 149 |
| EBITA | |||||||||
| Construction Equipment | 14 | 12 | 31 | 19 | 50 | 30 | 46 | 27 | 30 |
| Rental | 12 | 10 | 16 | 15 | 15 | 12 | 14 | 15 | 12 |
| Industrial Equipment | 7 | -1 | 7 | 32 | 17 | 32 | 11 | 6 | 4 |
| After Sales | 54 | 59 | 79 | 85 | 90 | 77 | 73 | 69 | 89 |
| Total | 87 | 79 | 134 | 152 | 172 | 151 | 144 | 117 | 135 |
Alimak Group AB
Interim Report Q2 January – June 2020
17
Bridge
| In MSEK | Q2 2020 | Q2 2019 | Jan-Jun 2020 | Jan-Jun 2019 |
|---|---|---|---|---|
| EBIT | 74.1 | 161.5 | 141.7 | 301.4 |
| Add back: | ||||
| Amortization | 12.5 | 10.3 | 24.2 | 21.4 |
| EBITA | 86.6 | 171.8 | 165.9 | 322.8 |
| Add back: | ||||
| Depreciation | 32.2 | 38.8 | 68.5 | 78.8 |
| EBITDA | 118.8 | 210.6 | 234.4 | 401.5 |
| EBITA | 86.6 | 171.8 | 165.8 | 322.8 |
| Add back: | ||||
| Items affecting comparability | 0.0 | 0.2 | 0.1 | 2.6 |
| EBITA adj, | 86.6 | 172.0 | 165.9 | 325.4 |
| In MSEK | 30 Jun 2020 | 30 Jun 2019 | 31 Dec 2019 | |
| --- | --- | --- | --- | |
| Non-current interest bearing debts | 941.9 | 1,285.5 | 1,034.5 | |
| Current interest bearing debts | 104.0 | 65.3 | 84.0 | |
| Non-current lease liability | 178.4 | 294.9 | 202.9 | |
| current lease liability | 58.8 | 31.9 | 64.1 | |
| Deduct: | ||||
| Long term interest bearing receivables | 1.5 | 8.4 | ||
| Short term interest bearing receivables | 42.8 | 30.1 | 56.2 | |
| Cash and cash equivalents | 221.8 | 327.0 | 313.6 | |
| Net debt | 1,017.0 | 1,320.5 | 1,007.3 | |
| Net debt | 1,017.0 | 1,320.5 | 1,007.3 | |
| Add: | ||||
| Shareholders equity | 3,651.0 | 3,534.9 | 3,684.2 | |
| Capital Employed | 4,668.0 | 4,855.4 | 4,691.5 |
Alimak Group AB
Interim Report Q2 January – June 2020
18
Condensed Income statement, parent company
| Amounts in MSEK | Q2 2020 | Q2 2019 | Jan-Jun 2020 | Jan-Jun 2019 |
|---|---|---|---|---|
| Revenue | 2.7 | 2.5 | 5.5 | 5.0 |
| Operating expenses | -9.0 | -8.0 | -18.2 | -15.0 |
| Operating profit/loss (EBIT) | -6.3 | -5.5 | -12.7 | -10.0 |
| Financial net | 6.0 | 4.0 | 12.3 | 8.4 |
| Profit/loss after financial items | -0.5 | -1.5 | -0.4 | -1.6 |
| Profit/loss before tax (EBT) | -0.5 | -1.5 | -0.4 | -1.6 |
| Income tax | 0.0 | 1.0 | 0.0 | 1.0 |
| Result for the period | -0.5 | -0.5 | -0.4 | -0.6 |
Condensed Balance sheet, parent company
| Amounts in MSEK | 30 Jun 2020 | 30 Jun 2019 | 31 Dec 2019 |
|---|---|---|---|
| Non-current assets | |||
| Shares in group companies | 1,898.4 | 1,898.4 | 1,898.4 |
| Other non-current assets | 2.4 | 2.0 | 2.4 |
| Total non-current assets | 1,900.8 | 1,900.4 | 1,900.8 |
| Current assets | |||
| Receivables from group companies | 1,474.2 | 1,528.5 | 1,622.4 |
| Other short term receivables | 22.5 | 4.3 | 1.6 |
| Cash and cash equivalents | 6.6 | 21.3 | 89.4 |
| Total current assets | 1,503.3 | 1,554.1 | 1,713.4 |
| TOTAL ASSETS | 3,404.1 | 3,454.5 | 3,614.2 |
| EQUITY AND LIABILITIES | |||
| Shareholders equity | 2,743.5 | 2,753.1 | 2,838.2 |
| Untaxed reserves | 47.3 | - | 47.3 |
| Non-current liabilities, interest bearing | 82.1 | 88.1 | 37.9 |
| Liabilities to group companies | 518.9 | 604.9 | 648.0 |
| Other current liabilities | 12.3 | 8.4 | 42.8 |
| TOTAL EQUITY AND LIABILITIES | 3,404.1 | 3,454.5 | 3,614.2 |
Alimak Group AB
Interim Report Q2 January – June 2020
19
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 file showing the bridge from IFRS measures into non-IFRS measures is found on page 17 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
| Amounts in MSEK | Q2 2020 | Q2 2019 | Jan-Jun 2020 | Jan-Jun 2019 |
|---|---|---|---|---|
| Europe | 349.5 | 450.1 | 666.3 | 806.3 |
| APAC | 347.7 | 384.5 | 690.4 | 823.6 |
| Americas | 269.3 | 343.9 | 517.1 | 701.3 |
| Other markets | 9.2 | 15.0 | 17.7 | 28.8 |
| Total | 975.7 | 1,193.5 | 1,891.5 | 2,360.0 |
| Over time | ||||
| Construction Equipment | - | - | - | - |
| Rental¹ | 48.3 | 55.2 | 97.4 | 98.8 |
| Industrial Equipment | 202.6 | 225.1 | 399.7 | 445.6 |
| After Sales | - | - | - | - |
| Total over time | 250.9 | 280.3 | 497.1 | 544.4 |
| Point in time | ||||
| Construction Equipment | 137.1 | 270.9 | 261.1 | 478.7 |
| Rental | 35.5 | 43.7 | 73.1 | 91.6 |
| Industrial Equipment | 276.6 | 267.8 | 492.3 | 617.1 |
| After Sales | 275.6 | 330.8 | 567.9 | 628.2 |
| Total point in time | 724.8 | 913.2 | 1,394.4 | 1,815.6 |
| Total | 975.7 | 1,193.5 | 1,891.5 | 2,360.0 |
¹) Part of business area Rental is accounted for applying IFRS 16, Leases.
Alimak Group AB
Interim Report Q2 January – June 2020
20
NOTE 3. RIGHT-OF-USE ASSETS
| Amounts in MSEK | 30 Jun 2020 | 30 Jun 2019 | 31 Dec 2019 |
|---|---|---|---|
| Right-of-use assets are split into the following categories | |||
| Premises | 187.1 | 274.4 | 207.3 |
| Vehicles | 34.0 | 32.4 | 40.3 |
| Equipment | 9.9 | 19.5 | 15.3 |
| Total | 231.0 | 326.3 | 262.9 |
The following amounts for Right-of-use assets and Lease liabilities are included in the Income statement.
| Amounts in MSEK | Q2 2020 | Q2 2019 | Jan-Jun 2020 | Jan-Jun 2019 |
|---|---|---|---|---|
| Depreciations are included in: | ||||
| Cost of sales | 10.7 | 16.9 | 25.0 | 35.7 |
| Operating expenses | 6.5 | 5.0 | 13.1 | 8.7 |
| 17.2 | 21.9 | 38.1 | 44.4 | |
| Included in Finance net: | ||||
| Interest expenses | 2.0 | 1.3 | 4.4 | 3.4 |
| 2.0 | 1.3 | 4.4 | 3.4 | |
| Total | 19.2 | 23.2 | 42.5 | 47.8 |
NOTE 4. FINANCIAL INSTRUMENTS
| Amounts in MSEK | Total carrying amount | ||
|---|---|---|---|
| 30 Jun 2020 | 30 Jun 2019 | 31 Dec 2019 | |
| FINANCIAL ASSETS | |||
| Derivative financial instruments | 4.4 | 0.8 | 4.5 |
| Other financial receivables | 1,135.3 | 1,282.3 | 1,262.3 |
| Cash and cash equivalents | 221.8 | 327.0 | 313.6 |
| Total | 1,361.5 | 1,610.1 | 1,580.4 |
| FINANCIAL LIABILITIES | |||
| Derivative financial instruments | 3.5 | 2.0 | 5.3 |
| Interest bearing debts | 1,046.3 | 1,350.8 | 1,118.5 |
| Other financial liabilities | 728.0 | 917.1 | 810.4 |
| Total | 1,777.8 | 2,269.9 | 1,934.2 |
Fair values are the same as carrying values for all financial assets and liabilities.
Alimak Group AB
Interim Report Q2 January – June 2020
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE
| 30 Jun 2020 | Level 2 |
|---|---|
| Financial assets | |
| Currency derivatives | 4.4 |
| Total | 4.4 |
| Financial liabilities | |
| Currency derivatives | 3.5 |
| Total | 3.5 |
| 30 Jun 2019 | Level 2 |
| Financial assets | |
| Currency derivatives | 0.8 |
| Total | 0.8 |
| Financial liabilities | |
| Currency derivatives | 2.0 |
| Total | 2.0 |
| 31 Dec 2019 | Level 2 |
| Financial assets | |
| Currency derivatives | 4.5 |
| Total | 4.5 |
| Financial liabilities | |
| Currency derivatives | 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 Q2 January – June 2020
NOTE 5. ACQUISITIONS
No acquisitions were made during the second quarter of 2020. In Q2 2019 Alimak Group made one minor acquisition, Dataline i Borås AB.
NOTE 6. ASSETS PLEDGED AND CONTINGENT LIABILITIES
As of June 30, 2020, the maximum potential future payments Alimak Group could be required to make under issued financial guarantees totalled MSEK 432.0 (June 30 2019 477.6, December 31 2019 477.6) of which MSEK 431.4 (June 30 2019 477.0, December 31 2019 477.0) refers to indemnity bonds for commitments to customers. Assets pledged totalled MSEK 18.2 (June 30 2019 15.0, December 31 2019 21.1).
Alimak Group AB
Interim Report Q2 January – June 2020
FINANCIAL CALENDAR
- The Interim Report for the third quarter of 2020 will be published on October 22, 2020.
- The Year-End report of 2020 will be published on February 11, 2021.
- The Annual Report for 2020 will be published on March 18, 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 CEST on Thursday July 23, 2020. CEO Ole Kristian Jødahl and CFO Tobias Lindquist 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: +46812410952
UK: +442037696819
US: +16467870157
PIN Code for all countries: 877963
Link to audiocast:
https://alimak.eventcdn.net/2020q2/
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
Tobias Lindquist, 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 CEST on July 23, 2020.
About Alimak Group
Alimak Group is a world-leading provider of vertical access solutions for professional use. With a global reach spanning more than 100 countries, the Group offers vertical access solutions adding customer value through greater safety, productivity and resource efficiency. Alimak Group's products and service solutions are sold under the brands Alimak, CoxGomyl, Manntech, Avanti and Alimak Service. The Group has an installed base of around 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 2,300 employees around the world. www.alimakgroup.com
ALIMAK GROUP