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Alimak Group Interim / Quarterly Report 2020
2997_10-q_2020-10-22_75882970-2f80-4aa0-95cd-6f69d7654b48.pdf
Interim / Quarterly Report
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Interim Report
January – September 2020
Q3
Continuing efforts to safeguard profit margins
- ⎯ Still significant impacts from COVID-19, but sequentially improved operational result and cash flow
- ⎯ Orders and revenue affected by negative currency effects organic decrease lower than in H1
- ⎯ New Heights programme launched non-recurring costs of MSEK 35 taken in the quarter
THIRD QUARTER
- ⎯ Order intake decreased by 15% to MSEK 888 (1,039) with an organic decrease of 9%
- ⎯ Revenue decreased by 16% to MSEK 916 (1,084) with an organic decrease of 9%
- ⎯ EBITA adj. decreased to MSEK 103 (152), margin 11.2% (14.0)
- ⎯ Result for the period decreased to MSEK 41 (100)
- ⎯ Earnings per share, basic and diluted, decreased to SEK 0.75 (1.83)
- ⎯ Cash flow from operations increased to MSEK 206 (134)
JANUARY – SEPTEMBER
- ⎯ Order intake decreased by 11% to MSEK 2,917 (3,290) with an organic decrease of 10%
- ⎯ Revenue decreased by 18% to MSEK 2,807 (3,444) with an organic decrease of 17%
- ⎯ EBITA adj. decreased to MSEK 269 (477), margin 9.6% (13.9)
- ⎯ Result for the period decreased to MSEK 133 (306)
- ⎯ Earnings per share, basic and diluted, decreased to SEK 2.45 (5.65)
- ⎯ Cash flow from operations was MSEK 341 (276)
- ⎯ Leverage (Net Debt/EBITDA) at September 30, 2020 was 1.68 (1.33 as of December 31, 2019)
| KEY FIGURES, GROUP | Q3 2020 | Q3 2019 ∆ |
Jan-Sep 2020 Jan-Sep 2019 | ∆ | ||
|---|---|---|---|---|---|---|
| Order intake, MSEK | 887,7 | 1 039,3 | -15% | 2 916,8 | 3 290,0 | -11% |
| Revenue, MSEK | 915,5 | 1 084,0 | -16% | 2 807,0 | 3 444,0 | -18% |
| EBITA adj, MSEK¹ | 102,7 | 152,0 | -32% | 268,5 | 477,4 | -44% |
| EBITA margin adj, %¹ | 11,2% | 14,0% | 9,6% | 13,9% | ||
| EBITA, MSEK | 67,2 | 151,8 | -56% | 233,0 | 474,5 | -51% |
| EBITA margin, % | 7,3% | 14,0% | 8,3% | 13,8% | ||
| EBIT, MSEK | 58,6 | 140,8 | -58% | 200,3 | 442,2 | -55% |
| EBIT margin, % | 6,4% | 13,0% | 7,1% | 12,8% | ||
| Result for the period, MSEK | 40,9 | 99,5 | -59% | 132,9 | 306,3 | -57% |
| Earnings per share, SEK | 0,75 | 1,83 | -59% | 2,45 | 5,65 | -57% |
| Cash flow from operations, MSEK | 205,8 | 134,2 | 53% | 341,4 | 276,3 | 24% |
| Net debt/EBITDA, ratio | 1,68 | 1,68 | 0% | 1,68 | 1,68 | 0% |
¹ Before items affecting comparability
Comments by the CEO
After a challenging first half of 2020, Alimak Group continued to face the effects caused by COVID-19 also in the third quarter. The organic decrease in orders and revenue is less than in Q2, but we now also have negative currency effects working against us. Customers continue to delay investment decisions and we are still facing travel restrictions and limitations on customer site access. Positive is that we do not see a lot of cancellations, so the pipeline remains. The Wind business is holding up well with only limited impact from the pandemic and the Rental business is to some extent benefitting from an increased preference of renting over buying in these turbulent times.
We see the effects from the pandemic in all parts of the world, and especially our US operations were affected while Europe and APAC held up somewhat better. With increased restrictions in Europe, we still see market uncertainty going forward.
We continue our efforts to safeguard our profit margins, something I note we managed to improve from Q2. We are now also implementing permanent measures as announced two weeks ago.
Cash flow from operations amounted to MSEK 206 (134). This was an effect of lower working capital following lower revenue but also more efficient collection of receivables. I am pleased to see that we have managed to improve the operating profit and cash management despite the continuing challenges.
At the same time, we continue to increase our investments in R&D and digitalisation. We are convinced our products will be fully connected and digitalised in the future, so this work is ongoing. As an example, all BMUs sold from early 2021 and onwards will have remote monitoring capabilities built in.
We also start exploring opportunities to help provide value to our customers in the bigger eco-systems around
our products. Something that should open up new opportunities going forward.
End of September, we closed the acquisition of Verta Corporation, an American service provider with a large share of the portfolio consisting of Manntech units. This acquisition is in line with our continued ambition to grow our After Sales business and expand our coverage, especially towards BMU customers.
Towards New Heights
Following the business review I initiated this summer, Alimak Group has launched the New Heights programme consisting of three steps: 1. Establish the base, 2. Secure margin improvements and 3. Profitable growth. An important part was the reorganisation into four divisions, which will be effective as of January 1, 2021.
The reorganisation, in combination with restructuring, will result in a net reduction of approximately 120 employees with targeted annual savings of around MSEK 60, with full effect by end of H1 2021.
Our short-term focus will be to implement this organisational change, safeguarding that the savings from the permanent measures taken are materialising and preparing for sustainable profitable growth.
Ole Kristian Jødahl, President and CEO
Group Performance
THIRD QUARTER
Order intake in the quarter decreased by 15% to MSEK 888 (1,039) with an organic decrease of 9% and a negative translation effect of exchange rates of 6% (MSEK 54). All business areas recorded lower orders compared to last year. The decline was largest in Americas and APAC while the order intake in Europe improved compared to last year.
Revenue decreased by 16% to MSEK 916 (1,084) with an organic decrease of 9% and a negative translation effect of exchange rates of 6% (MSEK 58). The reduction in Industrial Equipment was MSEK 106, representing 63% of the Group's total decline. Rental and After Sales both reported sequential improvements from the second quarter of 2020.
EBITA adjusted for the quarter was MSEK 103 (152) corresponding to a margin of 11.2% (14.0). The lower result and margin are largely volume related, though represents a significant sequential improvement. The gross margin was stable and operating expenses were reduced. Rental and After Sales both improved the result and margin from previous quarters this year.
Non-recurring expenses amounted to MSEK 35 (0) of which MSEK 12 relating to provisions for inventory and the remaining MSEK 23 costs for restructuring and reorganisation.
Amortisation in the quarter amounted to MSEK 9 (11) largely related to the acquired business and the decrease relates to some intangibles which are fully amortised.
EBIT in the quarter amounted to MSEK 59 (141).
The financial net was MSEK -6 (-12). The interest net was MSEK -6 (-5), leases MSEK -2 (-3) and the remaining portion largely related to currency fluctuations.
Tax expense for the quarter was MSEK 11 (29), a tax rate of 22% (23).
| ORDER INTAKE | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Orders, MSEK | 887.7 | 1,039.3 | 2,916.8 | 3,290.0 | |
| Change, MSEK | -151.6 | -64.3 | -373.2 | -116.7 | |
| Change, % | -14.6% | -5.8% | -11.3% | -3.4% | |
| Whereof: | |||||
| Volume & price, % | -8.6% | -8.9% | -9.8% | -8.1% | |
| Exchange rate, % | -6.0% | 3.1% | -1.5% | 4.6% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| REVENUE | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Revenue, MSEK | 915.5 | 1,084.0 | 2,807.0 | 3,444.0 | |
| Change, MSEK | -168.5 | -15.0 | -637.0 | 273.8 | |
| Change, % | -15.5% | -1.4% | -18.5% | 8.6% | |
| Whereof: | |||||
| Volume & price, % | -9.2% | -4.8% | -16.8% | 3.9% | |
| Exchange rate, % | -6.3% | 3.4% | -1.7% | 4.7% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% |
| EBIT & EBITA adj.¹ | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| EBIT, MSEK | 58.6 | 140.8 | 200.3 | 442.2 | |
| EBIT margin, % | 6.4% | 13.0% | 7.1% | 12.8% | |
| EBITA adj, MSEK | 102.7 | 152.0 | 268.5 | 477.4 | |
| EBITA margin adj, % | 11.2% | 14.0% | 9.6% | 13.9% | |
| Change, MSEK | -49.3 | 16.1 | -208.9 | 81.4 | |
| Change, % | -32.4% | 11.8% | -43.7% | 20.6% | |
| Whereof: | |||||
| Volume & price, % | -28.5% | 10.2% | -42.6% | 17.7% | |
| Exchange rate, % | -3.9% | 1.6% | -1.1% | 2.9% | |
| Acquisition & divestment, | 0.0% | 0.0% | 0.0% | 0.0% | |
¹ Before items affecting comparability
Result for the period amounted to MSEK 41 (100) where the decrease came from the lower operating result and non-recurring expenses. EPS thereby decreased to SEK 0.75 (1.83) for the quarter.
Cash flow from operations in the quarter was MSEK 206 (134). The lower operating result was more than offset by further reductions in working capital of MSEK 104 (-9) following improvements in receivables as well as inventories.
Investments relating to the acquisition of assets in Verta Corporation amounts to MSEK 15 (0).
Net investments in fixed assets in the quarter totalled MSEK 23 (10), of which MSEK 19 (3) was related to additions to the rental fleet.
Capitalised investments in intangibles amounted to MSEK 0 (1).
Net repayment of borrowings amounted to MSEK 134 (174).
JANUARY – SEPTEMBER
Order intake during the period decreased by 11% to MSEK 2,917 (3,290) with an organic decrease of 10%. Industrial Equipment represented MSEK 260 of the total contraction of MSEK 373. Construction Equipment and After Sales also had lower orders booked while Rental improved the order intake by MSEK 34.
Revenue decreased by 18% to MSEK 2,807 (3,444) with an organic decrease of 17%. 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 269 (477), corresponding to a margin of 9.6% (13.9). Compared to last year, all business areas reported lower result. Rental is the only business area improving its margin.
Non-recurring expenses in the period amounted to MSEK 35 (3) 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 33 (32) 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 200 (442).
The financial net was MSEK -30 (-39) whereas the interest net was MSEK -16 (-22), the impact from IFRS 16 was MSEK -6 (-7) and the remaining largely derived from currency impact.
Tax expense for the period was MSEK 37 (97) and the tax rate was 22% (24%).
Result for the period amounted to MSEK 133 (306) where the decrease relates to the lower operating result and non-recurring expenses. EPS decreased to SEK 2.45 (5.65).
Cash flow from operations in the period was MSEK 341 (276) following the decrease in working capital of MSEK 167 (-180).
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 57 (54). The majority of investments relate to additions in the rental fleet of MSEK 38 (26) 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 (12).
Net repayment of borrowings amounted to MSEK 198 (64).
Dividend of MSEK 94 (149) was paid out in May.
FINANCIAL POSITION
As of September 30, 2020, net debt totalled MSEK 854 (1,007 as of December 31, 2019).
The equity ratio was 60.7% (57.4 as of December 31, 2019) and the leverage (net debt/EBITDA) was 1.68 (1.33 as of December 31, 2019).
EMPLOYEES
As of September 30, 2020, there were 2,087 (2,386) FTEs in the Group.
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD JANUARY – SEPTEMBER 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.
Interim Report Q3 January – September 2020
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 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 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.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
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, will be effective 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 will be taken in Q4 2020.
The reorganisation includes changes to the Group Leadership Team:
- Henrik Teiwik, Head of Business Areas Construction Equipment and Rental will leave the Group. David Batson, today Country Manager Australia was appointed EVP Construction Division.
-
Fredrik Betts, Head of Business Unit General industry and Oil & Gas will leave the Leadership Team and assume the position of Global Head of Sales Industrial Division. The recruitment
-
Mark Casey, today Head of Business Unit BMU, was appointed EVP BMU Division.
- José Maria Nevot, today Head of Business Unit Wind, was appointed EVP Wind Division.
- Patrik Sundqvist, today Interim Head of Business Area After Sales was appointed Chief Service Delivery Officer (CSDO). Patrik Sundqvist will also assume the role of interim EVP Industrial Division.
- Recruitment is ongoing for the new Chief People & Culture Officer (CPCO). Cecilia Westerholm Beer will assume the role of interim CPCO.
- Matilda Wernhoff was appointed Chief Strategy Officer (CSO), a new function in the Group Leadership Team.
- Tobias Lindquist and Charlotte Brogren will remain in their current positions as Chief Financial Officer and Chief Technology Officer.
- Chief Operational Officer Stefan Rinaldo will as previously announced leave the Group and will not be replaced.
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].
FINANCIAL TARGETS AND POLICIES
Please refer to the latest Annual Report and alimakgroup.com.
Construction Equipment
Order intake decreased by 15%, down 9% organically, to MSEK 109 (128).
Revenue decreased by 16%, down 10% organically, to MSEK 110 (131).
The drop in order intake and revenue primarily came from the Americas and was largely COVID-19 related. Key customers continued to delay investments as well as delivery schedules, a result of the current market uncertainty. At the same time, Europe and APAC came in largely in line with last year for both orders and revenue.
EBITA adj. was MSEK 8 (19), corresponding to a margin of 7.1% (14.6). This was the result of the lower volumes, unfavourable mix with lower deliveries to Americas, which usually carry higher profitability, and somewhat increased operational expenses related to R&D.
| ORDER INTAKE | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Orders, MSEK | 109.1 | 128.4 | 428.2 | 504.5 | |
| Change, MSEK | -19.2 | -14.5 | -76.3 | -63.2 | |
| Change, % | -15.0% | -10.1% | -15.1% | -11.1% | |
| Whereof: | |||||
| Volume & price, % | -8.8% | -13.1% | -14.5% | -16.2% | |
| Exchange rate, % | -6.2% | 3.0% | -0.6% | 5.1% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| Q3 | Jan-Sep | ||||
| REVENUE | 2020 | 2019 | 2020 | 2019 | |
| Revenue, MSEK | 109.8 | 130.7 | 370.9 | 609.4 | |
| Change, MSEK | -20.9 | -45.7 | -238.5 | 71.5 | |
| Change, % | -16.0% | -25.9% | -39.1% | 13.3% | |
| Whereof: | |||||
| Volume & price, % | -10.3% | -28.5% | -38.3% | 7.8% | |
| Exchange rate, % | -5.7% | 2.6% | -0.8% | 5.5% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| EBITA adj.¹ | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| EBITA adj, MSEK | 7.8 | 19.1 | 33.7 | 99.5 | |
| EBITA margin adj, % | 7.1% | 14.6% | 9.1% | 16.3% | |
| Change, MSEK | -11.3 | -7.6 | -65.8 | 25.6 | |
| Change, % | -59.0% | -28.3% | -66.1% | 34.6% | |
| Whereof: | |||||
| Volume & price, % | -61.7% | -23.7% | -66.8% | 33.1% | |
| Exchange rate, % | 2.7% | -4.6% | 0.7% | 1.5% |
Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0% ¹ Before items affecting comparability
Rental
Order intake decreased by 14%, down 10% organically, to MSEK 74 (85), mostly relating to the timing of when larger orders are booked. Despite the low order intake in the quarter, the business area is reporting a strong increase year-to-date, up 14% organically year-over-year.
Revenue was flat, up 2% organically, and amounted to MSEK 99 (100), with improvements in Europe while Australia had a softer quarter impacted by renewed COVID-19 lockdowns.
EBITA adj. was MSEK 19 (15), corresponding to a margin of 18.8% (15.5). The strong result was mainly the effect of favourable product mix improving gross margins.
| ORDER INTAKE | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Orders, MSEK | 73.7 | 85.4 | 298.1 | 264.3 | |
| Change, MSEK | -11.7 | 24.0 | 33.8 | -13.6 | |
| Change, % | -13.7% | 39.1% | 12.8% | -4.9% | |
| Whereof: | |||||
| Volume & price, % | -10.1% | 37.5% | 14.3% | -7.4% | |
| Exchange rate, % | -3.6% | 1.6% | -1.5% | 2.5% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| REVENUE | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| Revenue, MSEK | 99.0 | 99.6 | 269.5 | 289.9 | |
| Change, MSEK | -0.5 | 4.5 | -20.4 | 27.2 | |
| Change, % | -0.5% | 4.7% | -7.0% | 10.3% | |
| Whereof: | |||||
| Volume & price, % | 2.3% | 3.1% | -5.6% | 8.1% | |
| Exchange rate, % | -2.8% | 1.6% | -1.4% | 2.3% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| EBITA adj.¹ | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| EBITA adj, MSEK | 18.7 | 15.4 | 40.1 | 42.0 | |
| EBITA margin adj, % | 18.8% | 15.5% | 14.9% | 14.5% | |
| Change, MSEK | 3.2 | 0.4 | -1.9 | 5.3 | |
| Change, % | 21.0% | 2.6% | -4.5% | 14.6% | |
| Whereof: | |||||
| Volume & price, % | 23.3% | 0.6% | -3.0% | 12.5% |
Exchange rate, % -2.4% 2.0% -1.5% 2.1% Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0%
¹ Before items affecting comparability
380 397 392 377 376 377 351 373 396 384 100 200 300 400 500 MSEK
Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Revenue Order intake
Industrial Equipment
Industrial Equipment had the largest impact on the drop in Group orders and revenue, representing 55% and 63% of the decline, respectively.
Order intake decreased by 16%, down 10% organically, to MSEK 439 (523).
Revenue decreased by 19%, down 12% organically, to MSEK 429 (535).
The BMU business unit was severely impacted by COVID-19 in the quarter, across all regions. The general market uncertainty and continued lockdowns affects customers' investment decisions as well as deliveries and installations.
Business unit General Industry was largely unaffected, however the business unit faced strong comparables from last year. The Wind business unit reported a solid quarter, with especially good development in China.
EBITA adj. of MSEK 0 (32), corresponding to a margin of 0.1% (6.0) was the result of the lower volumes and a conservative approach to risks and relating provisions of around MSEK 10.
| ORDER INTAKE | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Orders, MSEK | 439.5 | 523.4 | 1,291.4 | 1,551.7 | |
| Change, MSEK | -83.9 | -61.5 | -260.3 | -105.5 | |
| Change, % | -16.0% | -10.5% | -16.8% | -6.4% | |
| Whereof: | |||||
| Volume & price, % | -10.5% | -13.8% | -15.2% | -11.0% | |
| Exchange rate, % | -5.5% | 3.3% | -1.6% | 4.7% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| REVENUE | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| Revenue, MSEK | 429.0 | 534.9 | 1,321.0 | 1,597.6 | |
| Change, MSEK | -105.9 | -2.5 | -276.6 | 108.5 | |
| Change, % | -19.8% | -0.5% | -17.3% | 7.3% | |
| Whereof: | |||||
| Volume & price, % | -12.8% | -4.3% | -15.2% | 2.5% | |
| Exchange rate, % | -7.0% | 3.8% | -2.1% | 4.8% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| EBITA adj.¹ | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| EBITA adj, MSEK | 0.4 | 32.3 | 6.2 | 83.0 | |
| EBITA margin adj, % | 0.1% | 6.0% | 0.5% | 5.2% | |
| Change, MSEK | -31.9 | 14.2 | -76.9 | 40.0 | |
| Change, % | -98.7% | 78.1% | -92.6% | 93.2% | |
| Whereof: |
Volume & price, % -69.0% 75.9% -93.7% 91.1% Exchange rate, % -29.6% 2.2% 1.1% 2.0%
Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0% ¹ Before items affecting comparability
2,151 2,110 2,075 1,934 1,850 1,000 1,500 2,000 2,500 MSEK
0 500
2,177 2,115 1,958 1,944 1,838
Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Revenue Order intake
After Sales
Order intake decreased by 12%, down 5% organically, to MSEK 265 (302). The low order intake was spread across several markets in APAC and Europe.
Revenue decrease of 13%, down 6% organically, to MSEK 278 (319). The business is still affected by renewed COVID-19 lockdowns restricting travel and access to customer sites, especially in the Americas. Revenue was also negatively impacted by lack of larger refurbishment orders in previous periods.
EBITA adj. was MSEK 76 (85) corresponding to a strong margin of 27.3% (26.7). The margin improvement was the result of favourable product mix with larger share of parts in the revenue, supporting the gross margin. We have also, already in Q3, seen some effects of permanent measures taken in reduction of staff.
| ORDER INTAKE | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||
| Orders, MSEK | 265.4 | 302.1 | 899.1 | 969.4 | |
| Change, MSEK | -36.8 | -12.3 | -70.3 | 65.6 | |
| Change, % | -12.2% | -3.9% | -7.3% | 7.3% | |
| Whereof: | |||||
| Volume & price, % | -4.7% | -7.2% | -5.5% | 2.3% | |
| Exchange rate, % | -7.5% | 3.3% | -1.8% | 5.0% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| REVENUE | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| Revenue, MSEK | 277.6 | 318.8 | 845.6 | 947.0 | |
| Change, MSEK | -41.2 | 28.8 | -101.5 | 66.7 | |
| Change, % | -12.9% | 9.9% | -10.7% | 7.6% | |
| Whereof: | |||||
| Volume & price, % | -6.3% | 6.2% | -9.0% | 2.6% | |
| Exchange rate, % | -6.6% | 3.7% | -1.7% | 5.0% | |
| Acquisition & divestment, % | 0.0% | 0.0% | 0.0% | 0.0% | |
| EBITA adj.¹ | Q3 | Jan-Sep | |||
| 2020 | 2019 | 2020 | 2019 | ||
| EBITA adj, MSEK | 75.9 | 85.1 | 188.8 | 252.9 | |
| EBITA margin adj, % | 27.3% | 26.7% | 22.3% | 26.7% | |
| Change, MSEK | -9.2 | 9.1 | -64.1 | 10.5 | |
| Change, % | -10.8% | 11.9% | -25.4% | 4.3% | |
| Whereof: | |||||
| Volume & price, % | -6.0% | 9.2% | -23.9% | 0.5% | |
| Exchange rate, % | -4.8% | 2.7% | -1.5% | 3.8% |
Acquisition & divestment, % 0.0% 0.0% 0.0% 0.0% ¹ Before items affecting comparability
1,600 MSEK
Interim Report Q3 January – September 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, October 22, 2020
Alimak Group AB (publ) corporate identity number 556714-1857
Ole Kristian Jødahl Board Member President and CEO
Interim Report Q3 January – September 2020
Review report
Alimak Group AB, corporate identity number 556714-1857
Introduction
We have reviewed the condensed interim report for Alimak Group AB as at September 30, 2020 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm, October 22, 2020
Ernst & Young AB
Henrik Jonzén Authorized Public Accountant
Condensed statement of comprehensive income, Group
| Amounts in MSEK | Note | Q3 2020 | Q3 2019 | Jan-Sep 2020 |
Jan-Sep 2019 |
|---|---|---|---|---|---|
| Revenue | 2 | 915.5 | 1,084.0 | 2,807.0 | 3,444.0 |
| Cost of sales | -627.7 | -727.8 | -1,914.7 | -2,301.3 | |
| Gross profit | 287.8 | 356.2 | 892.3 | 1,142.7 | |
| Operating expenses | -229.2 | -215.4 | -692.0 | -700.5 | |
| Operating profit (EBIT) | 58.6 | 140.8 | 200.3 | 442.2 | |
| Financial net | -6.3 | -12.1 | -30.2 | -38.6 | |
| Profit before tax (EBT) | 52.3 | 128.7 | 170.1 | 403.6 | |
| Income tax | -11.4 | -29.2 | -37.2 | -97.3 | |
| Result for the period | 40.9 | 99.5 | 132.9 | 306.3 | |
| Attributable to owners of the parent company | 40.9 | 99.5 | 132.9 | 306.3 | |
| Earnings per share, basic and dilluted, SEK | 0.75 | 1.83 | 2.45 | 5.65 | |
| OTHER COMPREHENSIVE INCOME | |||||
| Items that will not be reclassified to net profit for the period | |||||
| Remeasurements of defined benefit pension plans | -1.8 | -7.1 | -14.2 | -30.1 | |
| Income tax relating to remeasurements of pension plans | 0.4 | 1.2 | 3.2 | 6.7 | |
| Total | -1.4 | -5.9 | -11.0 | -23.4 | |
| Items that may be reclassified to net profit for the period | |||||
| Forreign exchange translation differences | -34.4 | 80.9 | -59.3 | 163.4 | |
| Change in fair value of cash flow hedges | -1.8 | -9.4 | 2.2 | -7.4 | |
| Income tax relating to change in fair value of cash flow hedges | 0.4 | 2.0 | -0.6 | 1.6 | |
| Total | -35.8 | 73.5 | -57.7 | 157.6 | |
| Other comprehensive income | -37.2 | 67.6 | -68.7 | 134.2 | |
| Total comprehensive income | 3.7 | 167.1 | 64.2 | 440.5 | |
| Attributable to owners of the parent company | 3.7 | 167.1 | 64.2 | 440.5 |
Condensed statement of financial position, Group
| Amounts in MSEK | Note | 30 Sep 2020 | 30 Sep 2019 | 31 Dec 2019 |
|---|---|---|---|---|
| ASSETS | ||||
| Goodwill and other Intangible assets | 2,954.1 | 3,061.2 | 2,988.4 | |
| Property, plant and and equipment | 378.3 | 370.1 | 368.9 | |
| Right-of-use assets | 3 | 222.0 | 327.7 | 262.9 |
| Financial and other non-current assets | 211.3 | 169.9 | 177.4 | |
| Total non-current assets | 3,765.7 | 3,928.9 | 3,797.6 | |
| Inventories | 554.5 | 644.7 | 613.3 | |
| Contract assets | 312.9 | 324.6 | 357.9 | |
| Trade receivables | 810.2 | 1,026.4 | 966.0 | |
| Other receivables and assets | 229.3 | 254.7 | 254.5 | |
| Prepaid expenses and accrued income | 73.7 | 93.4 | 57.8 | |
| Short term investments | 46.2 | 23.4 | 56.2 | |
| Cash and cash equivalents | 229.3 | 245.2 | 313.6 | |
| Total current assets | 2,256.1 | 2,612.4 | 2,619.3 | |
| TOTAL ASSETS | 6,021.8 | 6,541.3 | 6,416.9 | |
| EQUITY AND LIABILITIES | ||||
| Shareholders equity | 3,654.6 | 3,676.9 | 3,684.2 | |
| Long-term borrowings | 816.7 | 1,164.4 | 1,034.5 | |
| Lease liability | 170.2 | 302.5 | 202.9 | |
| Other long term liabilities | 401.0 | 398.2 | 350.6 | |
| Total non-current liabilities | 1,387.9 | 1,865.1 | 1,588.0 | |
| Short-term borrowings | 83.5 | 33.8 | 84.0 | |
| Lease liability | 59.3 | 29.4 | 64.1 | |
| Contract liabilities | 89.9 | 30.8 | 99.4 | |
| Trade payables | 292.1 | 319.7 | 336.7 | |
| Other current liabilities | 454.5 | 585.6 | 560.5 | |
| Total current liabilities | 979.3 | 999.3 | 1,144.7 | |
| TOTAL EQUITY AND LIABILITIES | 6,021.8 | 6,541.3 | 6,416.9 |
Condensed statement of changes in equity, Group
| Retained | ||||||
|---|---|---|---|---|---|---|
| Share | Other paid-in | Translation | Hedging | earnings and 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 | - | - | - | - | 306.3 | 306.3 |
| Changes of fair value | - | - | - | -7.4 | - | -7.4 |
| Revaluation of pension plans | - | - | - | - | -30.1 | -30.1 |
| Tax attributable to revaluations | - | - | - | 1.6 | 6.7 | 8.3 |
| Translation difference | - | - | 163.4 | - | - | 163.4 |
| Total comprehensive income | - | - | 163.4 | -5.8 | 282.9 | 440.5 |
| Dividend | - | - | - | - | -148.7 | -148.7 |
| Repurchase of Treasury shares | - | -25.4 | - | - | - | -25.4 |
| Share based payments | - | 0.8 | - | - | - | 0.8 |
| Closing balance, 30 Sep 2019 | 1.1 | 2,914.1 | 325.3 | -7.8 | 444.2 | 3,676.9 |
| Result for the period | - | - | - | - | 87.7 | 87.7 |
| Changes of fair value | - | - | - | 5.9 | - | 5.9 |
| Revaluation of pension plans | - | - | - | - | 15.9 | 15.9 |
| Tax attributable to revaluations | - | - | - | -1.3 | -3.9 | -5.2 |
| Translation difference | - | - | -97.5 | - | - | -97.5 |
| Total comprehensive income | - | - | -97.5 | 4.6 | 99.7 | 6.8 |
| Repurchase of Treasury shares | - | - | - | - | - | 0.0 |
| Share based payments | - | 0.5 | - | - | - | 0.5 |
| 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 | - | - | - | - | 132.9 | 132.9 |
| Changes of fair value | - | - | - | 2.2 | - | 2.2 |
| Revaluation of pension plans | - | - | - | - | -14.2 | -14.2 |
| Tax attributable to revaluations | - | - | - | -0.6 | 3.2 | 2.6 |
| Translation difference | - | - | -59.3 | - | - | -59.3 |
| Total comprehensive income | - | - | -59.3 | 1.6 | 121.9 | 64.2 |
| Dividend | - | - | - | - | -94.3 | -94.3 |
| Share based payments | - | 0.5 | - | - | - | 0.5 |
| Closing balance, 30 Sep 2020 | 1.1 | 2,915.1 | 168.5 | -1.6 | 571.5 | 3,654.6 |
Interim Report Q3 January – September 2020
Cash flow statement, Group
| Amounts in MSEK | Q3 2020 | Q3 2019 | Jan-Sep 2020 | Jan-Sep 2019 |
|---|---|---|---|---|
| Operating activities | ||||
| Profit before tax | 52.2 | 128.8 | 170.1 | 403.7 |
| Depreciation, amortisation and impairment losses | 42.3 | 47.5 | 135.0 | 147.6 |
| Other non-cash items | 30.4 | -4.5 | 33.9 | -2.9 |
| Income taxes paid | -22.9 | -28.7 | -164.3 | -92.5 |
| Cashflow before change in working capital | 102.0 | 143.1 | 174.7 | 455.9 |
| Change in working capital | ||||
| Change in inventory | 42.2 | 9.8 | 38.3 | 70.0 |
| Change in contract assets | 17.1 | -21.9 | 30.8 | -59.5 |
| Change in operating receivables | 32.1 | 51.0 | 103.4 | 37.9 |
| Change in operating liabilities | 12.4 | -47.8 | -5.8 | -228.0 |
| Cash flow from working capital | 103.8 | -8.9 | 166.7 | -179.6 |
| Cash flow from operating activities | 205.8 | 134.2 | 341.4 | 276.3 |
| Investing activities | ||||
| Purchase of subsidiaries net of cash acquired | -14.9 | - | -14.9 | -16.6 |
| Purchase of intangible fixed assets | - | -1.3 | -11.5 | -12.3 |
| Purchase of property, plant and equipment | -23.3 | -9.7 | -56.6 | -53.3 |
| Net change in short term financial investments | -3.2 | 6.6 | 15.0 | -22.3 |
| Cash flow from investing activities | -41.4 | -4.4 | -68.0 | -104.5 |
| Financing activities | ||||
| Proceeds from borrowings | 40.9 | - | 178.9 | 210.4 |
| Repayment of borrowings | -174.4 | -174.3 | -376.8 | -274.1 |
| Repayment of Lease liability | -18.3 | -19.6 | -55.0 | -65.0 |
| Repurchase of treasury shares | - | -25.4 | - | -25.4 |
| Dividends paid | - | - | -94.3 | -148.7 |
| Cash flow from financing activities | -151.8 | -219.3 | -347.2 | -302.8 |
| Net change in cash and cash equivalents | 12.6 | -89.5 | -73.8 | -131.0 |
| Cash & cash equivalents at beginning of period | 221.8 | 327.0 | 313.6 | 355.6 |
| Exchange rate differences in cash and cash equivalents | -5.1 | 7.7 | -10.5 | 20.6 |
| Cash & cash equivalents at end of period | 229.3 | 245.2 | 229.3 | 245.2 |
Interim Report Q3 January – September 2020
Key figures
| 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| Quarterly data | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Order intake, MSEK | 887.7 | 962.4 | 1,066.8 | 1,073.3 | 1,039.3 | 1,150.0 | 1,100.7 | |
| Revenue, MSEK | 915.5 | 975.7 | 915.8 | 1,143.4 | 1,084.0 | 1,193.5 | 1,166.5 | |
| EBITDA, MSEK | 100.9 | 118.8 | 115.5 | 172.4 | 188.3 | 210.6 | 190.9 | |
| EBITA adj, MSEK | 102.7 | 86.6 | 79.3 | 151.5 | 152.0 | 172.0 | 153.4 | |
| EBITA margin adj, % | 11.2% | 8.9% | 8.7% | 13.2% | 14.0% | 14.4% | 13.2% | |
| EBITA, MSEK | 67.2 | 86.6 | 79.3 | 133.7 | 151.8 | 171.8 | 151.0 | |
| EBITA margin, % | 7.3% | 8.9% | 8.7% | 11.7% | 14.0% | 14.4% | 12.9% | |
| EBIT, MSEK | 58.6 | 74.1 | 67.6 | 122.9 | 140.8 | 161.5 | 139.9 | |
| EBIT, % | 6.4% | 7.6% | 7.4% | 10.7% | 13.0% | 13.5% | 12.0% | |
| Result for the period, MSEK | 40.9 | 50.6 | 41.4 | 87.8 | 99.5 | 108.2 | 98.5 | |
| Total comprehensive income, MSEK | 3.7 | -125.0 | 185.5 | 6.9 | 167.1 | 135.8 | 137.5 | |
| Cash flow from operations, MSEK | 205.8 | 123.5 | 12.1 | 225.7 | 134.2 | 106.2 | 35.9 | |
| Cash flow for the period, MSEK | 12.6 | 19.8 | -106.3 | 75.5 | -89.5 | 39.1 | -80.7 | |
| Cash flow from operations/EBITDA | 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 | |
| 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 | |
| Earnings per share, SEK | 0.75 | 0.94 | 0.76 | 1.62 | 1.83 | 2.00 | 1.82 | |
| Cash flow per share, SEK | 0.23 | 0.37 | -1.96 | 1.39 | -1.65 | 0.72 | -1.49 | |
| Equity per share, SEK | 67.48 | 67.41 | 71.50 | 68.03 | 67.89 | 65.27 | 65.51 | |
| Total assets, MSEK | 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 | 229.3 | 221.8 | 215.4 | 313.6 | 245.2 | 327.0 | 289.0 | |
| Equity, MSEK | 3,654.6 | 3,651.0 | 3,870.2 | 3,684.2 | 3,676.9 | 3,534.9 | 3,547.7 | |
| Capital employed, MSEK | 4,508.1 | 4,668.0 | 4,915.5 | 4,691.5 | 4,938.5 | 4,855.4 | 4,781.5 | |
| Net debt, MSEK | 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 | 624.0 | 779.8 | 785.4 | 740.3 | 929.9 | 993.7 | 871.3 | |
| Equity ratio, % | 60.7% | 59.5% | 60.6% | 57.4% | 56.2% | 54.2% | 54.4% | |
| Return on equity, % | 6.0% | 7.8% | 9.1% | 11.1% | 13.0% | 12.3% | 11.5% | |
| Return on capital employed goodwill excluded, % | 13.8% | 16.9% | 20.0% | 26.4% | 25.7% | 23.6% | 25.1% | |
| Return on capital employed, % | 6.8% | 8.5% | 10.2% | 12.6% | 12.5% | 11.7% | 11.7% | |
| Interest coverage ratio, times | 6.35 | 7.98 | 6.99 | 9.31 | 13.79 | 13.43 | 12.35 | |
| Net debt/EBITDA ratio | 1.68 | 1.71 | 1.52 | 1.33 | 1.68 | 1.90 | 1.94 | |
| Net debt excl. Lease liability/EBITDA ratio | 1.23 | 1.31 | 1.14 | 0.97 | 1.24 | 1.43 | 1.37 | |
| Number of employees | 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
Interim Report Q3 January – September 2020
Key figures (cont)
| 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| Rolling 4 Quarters | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Order intake, MSEK | 3,990.2 | 4,141.8 | 4,329.4 | 4,363.2 | 4,504.4 | 4,568.7 | 4,601.1 | |
| Revenue, MSEK | 3,950.4 | 4,118.9 | 4,336.7 | 4,587.4 | 4,594.2 | 4,609.2 | 4,527.2 | |
| EBITA adj, MSEK | 420.1 | 469.4 | 554.8 | 628.9 | 636.0 | 619.9 | 596.6 | |
| EBITA margin adj, % | 10.6% | 11.4% | 12.8% | 13.7% | 13.8% | 13.4% | 13.2% | |
| EBIT, MSEK | 323.2 | 405.4 | 492.8 | 565.1 | 575.9 | 540.0 | 499.2 | |
| EBIT, % | 8.2% | 9.9% | 11.4% | 12.3% | 12.5% | 11.7% | 11.0% | |
| Result for the period, MSEK | 220.7 | 279.3 | 336.9 | 394.0 | 449.9 | 418.9 | 389.7 | |
| Total comprehensive income, MSEK | 321.1 | 234.5 | 495.3 | 447.3 | 593.3 | 441.4 | 343.7 | |
| Cash flow from operations, MSEK | 567.1 | 495.5 | 478.4 | 502.1 | 424.2 | 402.8 | 305.8 | |
| Cash flow for the period, MSEK | 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 | 2020 | 2019 | 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Order Intake | |||||||||||
| Construction Equipment | 109 | 140 | 179 | 129 | 128 | 164 | 212 | 248 | 143 | 226 | 199 |
| Rental | 74 | 112 | 113 | 86 | 85 | 89 | 90 | 113 | 61 | 114 | 102 |
| Industrial Equipment | 439 | 410 | 442 | 559 | 523 | 551 | 477 | 600 | 585 | 539 | 533 |
| After Sales | 265 | 300 | 333 | 299 | 302 | 346 | 321 | 254 | 314 | 303 | 286 |
| Total | 888 | 962 | 1,067 | 1,073 | 1,039 | 1,150 | 1,101 | 1,214 | 1,104 | 1,182 | 1,121 |
| Revenue | |||||||||||
| Construction Equipment | 110 | 137 | 124 | 204 | 131 | 271 | 208 | 176 | 176 | 185 | 177 |
| Rental | 99 | 84 | 87 | 107 | 100 | 99 | 91 | 91 | 95 | 87 | 80 |
| Industrial Equipment | 429 | 479 | 413 | 517 | 535 | 493 | 570 | 580 | 537 | 523 | 429 |
| After Sales | 278 | 276 | 292 | 316 | 319 | 331 | 297 | 303 | 290 | 316 | 274 |
| Total | 916 | 976 | 916 | 1,143 | 1,084 | 1,193 | 1,167 | 1,150 | 1,099 | 1,112 | 960 |
| EBITA adj. | |||||||||||
| Construction Equipment | 8 | 14 | 12 | 31 | 19 | 50 | 30 | 34 | 27 | 31 | 17 |
| Rental | 19 | 12 | 10 | 16 | 15 | 15 | 12 | 14 | 15 | 12 | 9 |
| Industrial Equipment | 0 | 7 | -1 | 25 | 32 | 17 | 34 | 32 | 18 | 14 | 11 |
| After Sales | 76 | 54 | 59 | 79 | 85 | 90 | 78 | 78 | 76 | 92 | 74 |
| Total | 103 | 87 | 79 | 151 | 152 | 172 | 153 | 159 | 136 | 149 | 111 |
| EBITA | |||||||||||
| Construction Equipment | 5 | 14 | 12 | 31 | 19 | 50 | 30 | 46 | 27 | 30 | 17 |
| Rental | 15 | 12 | 10 | 16 | 15 | 15 | 12 | 14 | 15 | 12 | 9 |
| Industrial Equipment | -15 | 7 | -1 | 7 | 32 | 17 | 32 | 11 | 6 | 4 | -1 |
| After Sales | 63 | 54 | 59 | 79 | 85 | 90 | 77 | 73 | 69 | 89 | 70 |
| Total | 67 | 87 | 79 | 134 | 152 | 172 | 151 | 144 | 117 | 135 | 95 |
Interim Report Q3 January – September 2020
Bridge
| In MSEK | Q3 2020 | Q3 2019 | Jan-Sep 2020 | Jan-Sep 2019 |
|---|---|---|---|---|
| EBIT | 58.6 | 140.8 | 200.3 | 442.2 |
| Add back: | ||||
| Amortization | 8.6 | 11.0 | 32.8 | 32.3 |
| EBITA | 67.2 | 151.8 | 233.0 | 474.5 |
| Add back: | ||||
| Depreciation | 33.7 | 36.5 | 102.2 | 115.3 |
| EBITDA | 100.9 | 188.3 | 335.2 | 589.8 |
| EBITA | 67.2 | 151.8 | 233.0 | 474.5 |
| Add back: | ||||
| Items affecting comparability | 35.5 | 0.2 | 35.5 | 2.9 |
| EBITA adj, | 102.7 | 152.0 | 268.5 | 477.4 |
| In MSEK | 30 Sep 2020 | 30 Sep 2019 | 31 Dec 2019 |
|---|---|---|---|
| Non-current interest bearing debts | 816.7 | 1,164.4 | 1,034.5 |
| Current interest bearing debts | 83.5 | 33.8 | 84.0 |
| Non-current lease liability | 170.2 | 302.6 | 202.9 |
| current lease liability | 59.3 | 29.4 | 64.1 |
| Deduct: | |||
| Long term interest bearing receivables | 0.7 | - | 8.4 |
| Short term interest bearing receivables | 46.2 | 23.4 | 56.2 |
| Cash and cash equivalents | 229.3 | 245.2 | 313.6 |
| Net debt | 853.5 | 1,261.6 | 1,007.3 |
| Net debt | 853.5 | 1,261.6 | 1,007.3 |
| Add: | |||
| Shareholders equity | 3,654.6 | 3,676.9 | 3,684.2 |
| Capital Employed | 4,508.1 | 4,938.5 | 4,691.5 |
Condensed Income statement, parent company
| Amounts in MSEK | Q3 2020 | Q3 2019 | Jan-Sep 2020 | Jan-Sep 2019 |
|---|---|---|---|---|
| Revenue | 2.8 | 2.8 | 8.3 | 7.8 |
| Operating expenses | -16.8 | -10.7 | -34.9 | -25.5 |
| Operating profit/loss (EBIT) | -14.0 | -7.9 | -26.6 | -17.7 |
| Financial net | 253.5 | 4.5 | 265.8 | 12.8 |
| Profit/loss after financial items | 239.5 | -3.4 | 239.2 | -4.9 |
| Profit/loss before tax (EBT) | 239.5 | -3.4 | 239.2 | -4.9 |
| Income tax | 2.4 | 0.8 | 2.3 | 1.7 |
| Result for the period | 241.9 | -2.6 | 241.5 | -3.2 |
Condensed Balance sheet, parent company
| Amounts in MSEK | 30 Sep 2020 | 30 Sep 2019 | 31 Dec 2019 |
|---|---|---|---|
| Non-current assets | |||
| Shares in group companies | 1,898.4 | 1,898.4 | 1,898.4 |
| Other non-current assets | 10.0 | 2.1 | 2.4 |
| Total non-current assets | 1,908.4 | 1,900.5 | 1,900.8 |
| Current assets | |||
| Receivables from group companies | 1,591.5 | 1,615.9 | 1,622.4 |
| Other short term receivables | 29.1 | 5.5 | 1.6 |
| Cash and cash equivalents | 0.4 | 0.0 | 89.4 |
| Total current assets | 1,621.0 | 1,621.4 | 1,713.4 |
| TOTAL ASSETS | 3,529.4 | 3,521.9 | 3,614.2 |
| EQUITY AND LIABILITIES | |||
| Shareholders equity | 2,985.4 | 2,725.1 | 2,838.2 |
| Untaxed reserves | 47.3 | - | 47.3 |
| Non-current liabilities, interest bearing | - | 36.9 | 37.9 |
| Liabilities to group companies | 483.2 | 748.1 | 648.0 |
| Other current liabilities | 13.5 | 11.8 | 42.8 |
| TOTAL EQUITY AND LIABILITIES | 3,529.4 | 3,521.9 | 3,614.2 |
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
| Amounts in MSEK | Q3 2020 | Q3 2019 | Jan-Sep 2020 | Jan-Sep 2019 |
|---|---|---|---|---|
| Europe | 329.3 | 393.0 | 995.6 | 1,199.4 |
| APAC | 370.7 | 359.5 | 1,061.1 | 1,183.1 |
| Americas | 210.9 | 321.0 | 728.0 | 1,022.3 |
| Other markets | 4.6 | 10.5 | 22.3 | 39.2 |
| Total | 915.5 | 1,084.0 | 2,807.0 | 3,444.0 |
| Over time | ||||
| Construction Equipment | - | - | - | - |
| Rental¹ | 54.8 | 57.3 | 152.2 | 156.1 |
| Industrial Equipment | 169.1 | 210.7 | 568.7 | 656.3 |
| After Sales | - | - | - | - |
| Total over time | 223.9 | 268.0 | 720.9 | 812.4 |
| Point in time | ||||
| Construction Equipment | 109.8 | 130.7 | 370.9 | 609.4 |
| Rental | 44.3 | 42.2 | 117.3 | 133.8 |
| Industrial Equipment | 260.0 | 324.2 | 752.3 | 941.4 |
| After Sales | 277.5 | 318.9 | 845.6 | 947.0 |
| Total point in time | 691.6 | 816.0 | 2,086.1 | 2,631.6 |
| Total | 915.5 | 1,084.0 | 2,807.0 | 3,444.0 |
¹) Part of business area Rental is accounted for applying IFRS 16, Leases.
Interim Report Q3 January – September 2020
NOTE 3. RIGHT-OF-USE ASSETS
| Amounts in MSEK | 30 Sep 2020 | 30 Sep 2019 | 31 Dec 2019 |
|---|---|---|---|
| Right-of-use assets are split into the following categories | |||
| Premises | 180.9 | 278.0 | 207.5 |
| Vehicles | 33.5 | 31.6 | 40.1 |
| Equipment | 7.6 | 18.1 | 15.3 |
| Total | 222.0 | 327.7 | 262.9 |
The following amounts for Right-of-use assets and Lease liabilities are included in the Income statement.
| Amounts in MSEK | Q3 2020 | Q3 2019 | Jan-Sep 2020 | Jan-Sep 2019 |
|---|---|---|---|---|
| Depreciations are included in: | ||||
| Cost of sales | 12.2 | 15.9 | 37.2 | 51.6 |
| Operating expenses | 6.8 | 4.8 | 19.9 | 13.5 |
| 19.0 | 20.7 | 57.1 | 65.1 | |
| Included in Finance net: | ||||
| Interest expenses | 2.1 | 3.2 | 6.4 | 6.6 |
| 2.1 | 3.2 | 6.4 | 6.6 | |
| Total | 21.1 | 23.9 | 63.5 | 71.7 |
NOTE 4. FINANCIAL INSTRUMENTS
| Amounts in MSEK | Total carrying amount | ||||
|---|---|---|---|---|---|
| 30 Sep 2020 | 30 Sep 2019 | 31 Dec 2019 | |||
| FINANCIAL ASSETS | |||||
| Derivative financial instruments | 1.7 | 2.5 | 4.5 | ||
| Other financial receivables | 1,089.6 | 1,233.0 | 1,262.3 | ||
| Cash and cash equivalents | 229.3 | 245.2 | 313.6 | ||
| Total | 1,320.6 | 1,480.7 | 1,580.4 | ||
| FINANCIAL LIABILITIES | |||||
| Derivative financial instruments | 3.1 | 13.1 | 5.3 | ||
| Interest bearing debts | 900.6 | 1,198.3 | 1,118.5 | ||
| Other financial liabilities | 741.2 | 890.2 | 810.4 | ||
| Total | 1,644.9 | 2,101.6 | 1,934.2 |
Fair values are the same as carrying values for all financial assets and liabilities.
Interim Report Q3 January – September 2020
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE
| 30 Sep 2020 | Level 2 |
|---|---|
| Financial assets | |
| Currency derivatives | 1.7 |
| Total | 1.7 |
| Financial liabilities | |
| Currency derivatives | 3.1 |
| Total | 3.1 |
| 30 Sep 2019 | Level 2 |
| Financial assets | |
| Currency derivatives | 2.5 |
| Total | 2.5 |
| Financial liabilities | |
| Currency derivatives | 13.1 |
| Total | 13.1 |
| 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.
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 September 30, 2020, the maximum potential future payments Alimak Group could be required to make under issued financial guarantees totalled MSEK 406.5 (Sept 30 2019 480.8, December 31 2019 477.6) of which MSEK 405.9 (September 30 2019 478.9, December 31 2019 477.0) refers to indemnity bonds for commitments to customers. Assets pledged totalled MSEK 13.2 (September 30, 2019 19.8, December 31, 2019 21.1).
FINANCIAL CALENDAR
- ⎯ 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.
- ⎯ 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 CEST on Thursday October 22, 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: +46850558354 US: +18335268397 UK: +44 3333000804 PIN: 92107187#
Link to audiocast:
https://streams.eventcdn.net/alimak/2020q3
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 October 22, 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