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Alimak Group Interim / Quarterly Report 2021
2997_10-q_2021-04-22_9f2715b8-8b2b-412e-84d9-fe413046df71.pdf
Interim / Quarterly Report
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Alimak Group AB
ALIG, SE0007158910
ALIMAK GROUP
Interim Report
January – March 2021
Margin improvements
- Currency translation effects had negative impact on reported order intake, revenue and earnings
- Organic order intake growth of 7%
- Revenue flat organically as expected due to incoming order backlog and continued effects of the COVID-19 pandemic
- Margin improvements in all divisions and cost savings programme on track
- Strong Cash Flow and further strengthened financial position
FIRST QUARTER
- Order intake increased by 1% to MSEK 1,073 (1,067) with an organic increase of 7%
- Revenue decreased by 8% to MSEK 846 (916) with an organic decrease of 1%
- EBITA increased by 20% to MSEK 95 (79), corresponding to a margin of 11.2% (8.7)
- Result for the period increased to MSEK 63 (41)
- Earnings per share, basic and diluted, increased by 51% to SEK 1.15 (0.76)
| KEY FIGURES, GROUP | Q1 2021 | Q1 2020 | Δ |
|---|---|---|---|
| Order intake, MSEK | 1,073 | 1,067 | 0.6% |
| Revenue, MSEK | 846 | 916 | -7.7% |
| EBITA, MSEK | 95 | 79 | 19.7% |
| EBITA margin, % | 11.2% | 8.7% | |
| EBIT, MSEK | 86 | 68 | 27.8% |
| EBIT margin, % | 10.2% | 7.4% | |
| Result for the period, MSEK | 63 | 41 | 51.0% |
| Earnings per share, basic and diluted, SEK | 1.15 | 0.76 | 51.3% |
| Cash flow from operations, MSEK | 112 | 12 | 823.1% |
| Net debt/EBITDA, ratio | 1.29 | 1.52 | -15.1% |
Alimak Group AB
Interim Report Q1 January – March 2021
Comments by the CEO
During the first quarter, currency translation effects continued to impact reported order intake, revenue and earnings negatively. The underlying market demand and customer investment activity showed improvement in most of our businesses.
Organic order intake for the Group was up by 7%, with strong order development in BMU and Construction and also Industrial delivered a solid quarter. However, we saw a significant decline in Wind where we now only take orders for tower internals which meet our margin requirements. Other parts of the Wind business showed good development with increased order intake in northern Europe, particularly regarding equipment in Denmark and Services in the UK.
Revenue in the quarter was as expected more or less in line with last year organically, which we see as positive given the current circumstances. Industrial showed some organic growth but was offset by slightly lower organic revenue in BMU, Construction and Wind.
The efficiency measures we implemented during 2020 as part of the New Heights programme have delivered cost savings in line with plan and we are on track to deliver on the MSEK 60 targeted annual savings with full effect as of H2 2021. I am pleased to see a solid step forward in improving profitability in the quarter with a 20% increase in EBITA and a margin increase of 2.5 percentage points year-on-year. Industrial and Construction both delivered solid margin improvements in the quarter. On a less positive note, BMU reported negative earnings and margins, impacted by low volumes in January and February and project mix. Reporting losses is a main concern. We have a plan to solve it, and this should be our last quarter with losses. We believe the EBITA margin in this business should be double digit, but it will take some time to get there, also considering the long lead times in this business.
Set for margin improvements during 2021
At the start of the year, our new customer centric organisation was implemented. We now have a new and diverse leadership team in place, highly committed to lead the Group forward. Driving our new vision with a clear roadmap based on our strategic wheel. From our
operations in China, we have launched two new products adopted to the specific needs of the Asian market. A new industrial elevator specialized on the requirements for the growing industrial sector in Asia and a construction machine to be used inside lift shafts during the construction phase of tall residential buildings. During the quarter we were also piloting various digital services with selected customers with very good feedback. As part of our increased focus on sustainability, we have signed up as a partner to REES a strategic R&D in circular economy led by Linköping University.
Our main priority for the year is to deliver on our profit commitments while at the same time preparing the Group for sustainable profitable growth in the years to come. We are in the final stages of completing the divisional strategies and we look forward to presenting the findings of this work at the upcoming Capital Markets Day on 17 June.
Gradually improved business climate
The pandemic is still very much around us but as an organisation we are now managing the challenges in a good way, including cautionary measures to keep our employees and customers safe. I want to thank our employees for their dedication and hard work adapting to the continued challenges in the quarter. We expect to see a gradually improved business climate during 2021. The second quarter will most likely continue to be challenging but we are prepared to manage different scenarios.
Ole Kristian Jødahl, President and CEO
Alimak Group AB
Interim Report Q1 January – March 2021
Group Performance
Share of EBITA
Share of revenue
FIRST QUARTER
Currency translation effects had a negative impact on reported order intake, revenue and earnings in the quarter.
Order intake increased by 1% to MSEK 1,073 (1,067) with an organic increase of 7%. BMU and Construction both showed strong organic growth while Wind had a significant drop vs. last year, mainly driven by our profit before growth focus. Our aftermarket business is now part of each division, but as a Group, order intake for the aftermarket increased 10% in the quarter, up 19% organically.
Revenue decreased by 8% to MSEK 846 (916) with an organic decrease of 1%. Construction, BMU and Wind reported negative organic growth due to low order backlog entering 2021, whereas Industrial reported an organic increase of 3 percent. As a Group, aftermarket revenue decreased 4% in the quarter, but increased by 4% organically.
EBITA for the quarter was MSEK 95 (79) corresponding to a margin of 11.2% (8.7). The higher result was mainly driven by cost savings as well as good and disciplined price management.
Amortisation in the quarter amounted to MSEK 9 (12) largely related to the acquired businesses and the decrease relates to some intangibles which are fully amortised.
EBIT in the quarter amounted to MSEK 86 (68).
The financial net was MSEK -4 (-14). The interest net was MSEK -5 (-7), leases MSEK -1 (-2) and the remaining portion largely related to currency fluctuations.
Tax expense for the quarter was MSEK 20 (12), a tax rate of 25% (23).
| ORDER INTAKE | Q1 | |
|---|---|---|
| 2021 | 2020 | |
| Orders, MSEK | 1,073 | 1,067 |
| Change, MSEK | 7 | -34 |
| Change, % | 0.6% | -3.1% |
| Whereof: | ||
| Volume & price, % | 7.3% | -5.1% |
| Exchange rate, % | -7.3% | 2.1% |
| Acquisition & divestment, % | 0.7% | 0.0% |
| REVENUE | Q1 | |
| --- | --- | --- |
| 2021 | 2020 | |
| Revenue, MSEK | 846 | 916 |
| Change, MSEK | -70 | -251 |
| Change, % | -7.7% | -21.5% |
| Whereof: | ||
| Volume & price, % | -1.0% | -23.4% |
| Exchange rate, % | -7.1% | 1.9% |
| Acquisition & divestment, % | 0.5% | 0.0% |
| EBITA | Q1 | |
| --- | --- | --- |
| 2021 | 2020 | |
| EBITA, MSEK | 95 | 79 |
| Change, MSEK | 16 | -72 |
| Change, % | 19.7% | -47.5% |
| Whereof: | ||
| Volume & price, % | 24.3% | -48.6% |
| Exchange rate, % | -4.6% | 1.1% |
| Acquisition & divestment, % | 0.0% | 0.0% |
Share of order intake
Share of revenue
Cash flow from Operations by quarter
Alimak Group AB
Interim Report Q1 January – March 2021
Result for the period amounted to MSEK 63 (41) where the increase came from the higher operating result. EPS increased to SEK 1.15 (0.76) for the quarter.
Cash flow from operations in the quarter was MSEK 112 (12). The higher operating result in combination with further reductions in working capital of MSEK 16 (40) was achieved through lower trade receivables and contract assets.
Net investments in fixed assets in the quarter totalled MSEK 16 (17).
Capitalised investments in intangibles amounted to MSEK 3 (8).
Net repayment of borrowings amounted to MSEK 117 (74).
FINANCIAL POSITION
As of March 31, 2021, net debt totalled MSEK 603 (1,045 as of March 31, 2020).
The equity ratio was 65.7% (60.6 as of March 31, 2020) and the leverage (net debt/EBITDA) was 1.29 (1.52 as of March 31, 2020).
EMPLOYEES
As of March 31, 2021, there were 2,033 (2,200) FTEs in the Group.
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD JANUARY – MARCH 2021
Next step in the New Heights Programme
In October 2020, Alimak Group launched the New Heights programme, consisting of three steps 1. Establish the base, 2. Secure margin improvements and 3. Profitable growth. The first step of the programme is completed, and the Group has now entered the second step; Securing margin improvements.
As of January 1, 2021 a new organisation and subsequent reporting structure came into effect with four, customer centric divisions: BMU, Construction, Industrial, and Wind. As a consequence of this the reporting segments are changed compared to the Annual report 2020. A detailed description of the New Heights programme and the new organisation is found in the Annual Report 2020. The reorganisation in combination with restructuring will result in targeted annual savings of around MSEK 60, with full effect as of H2 2021.
Management changes
On February 9, 2021, Alimak Group appointed Thomas Hendel as CFO, effective as of May 17, 2021. Thomas Hendel will join Alimak Group from the role as Deputy Chief Financial Officer of Saab Group, a position he has held since 2016. He has 30 years of experience from different financial and general management roles within Saab and ABB, including as Interim Chief Financial Officer at Saab between May and September 2020.
On March 12, 2021, Alimak Group appointed Salomeh Tafazoli as EVP Industrial division, effective as of June 1, 2021. Salomeh Tafazoli is currently Vice President Sales and Marketing EMEA at Snap-on Equipment, an American based company listed on NYSE. She has extensive experience from the automotive industry, working with both products and services, and has previously held various strategic and commercial roles within Volvo Group and Car-O-Liner Group.
Dividend for 2020
For the financial year 2020, The Board of Directors propose a dividend of SEK 2.00 (1.75) per share based on existing number of shares. In addition, the Board proposes an extra dividend of SEK 1.00.
FINANCIAL TARGETS AND POLICIES
Please refer to the latest Annual Report and alimakgroup.com.
Alimak Group AB
Interim Report Q1 January – March 2021
BMU
Share of order intake
Equipment
= Service
Share of revenue
Equipment
= Service
Order intake increased by 15%, up 22% organically, to MSEK 289 (252). The growth was achieved through a significant increase in service order intake in Europe and Asia. Equipment sales also increased, however, uncertainty in the US market remains with project award delays as well as intense price competition in the Middle East and Asia.
Revenue decreased by 9%, down 2% organically, to MSEK 228 (251). Decrease due to incoming order backlog and continued impact from COVID-19.
EBITA was MSEK -6 (-8), corresponding to a margin of -2.5% (-3.1). Profitability was negatively impacted by low volumes in January and February and project mix. A plan to improve earnings and margins is in place, and this should be the last quarter with losses in BMU.
| ORDER INTAKE | Q1 | |
|---|---|---|
| 2021 | 2020 | |
| Orders, MSEK | 289 | 252 |
| Change, MSEK | 38 | 21 |
| Change, % | 15.0% | 8.9% |
| Whereof: | ||
| Volume & price, % | 22.3% | 5.7% |
| Exchange rate, % | -9.8% | 3.2% |
| Acquisition & divestment, % | 2.5% | 0.0% |
| REVENUE | Q1 | |
| --- | --- | --- |
| 2021 | 2020 | |
| Revenue, MSEK | 228 | 251 |
| Change, MSEK | -22 | -5 |
| Change, % | -8.9% | -2.1% |
| Whereof: | ||
| Volume & price, % | -2.1% | -5.6% |
| Exchange rate, % | -8.5% | 3.5% |
| Acquisition & divestment, % | 1.7% | 0.0% |
| EBITA | Q1 | |
| --- | --- | --- |
| 2021 | 2020 | |
| EBITA, MSEK | -6 | -8 |
| Change, MSEK | 2 | -19 |
| Change, % | 28.6% | -170.4% |
| Whereof: | ||
| Volume & price, % | 25.6% | -165.6% |
| Exchange rate, % | -4.2% | -4.8% |
| Acquisition & divestment, % | 7.2% | 0.0% |
Orderintake and revenues by Quarters
EBITA % & EBITA By Quarters
Alimak Group AB
Interim Report Q1 January – March 2021
Construction
Share of order intake
Share of revenue
Equipment Service
Order intake increased by 11% to MSEK 374 (337) up 17% organically. Customers in US have increased capex investment in the quarter due to improved equipment utilization and higher level of project activity. We also saw improvements in the Nordics, Latin America, India as well as the Pacific, particularly in Australia. Parts and Service orders overall was a significant contributor.
Revenue decreased by 7%, down 2% organically to MSEK 234 (251). The decrease primarily comes from the low backlog entering into 2021.
EBITA was MSEK 35 (33), corresponding to a margin of 15% (13%). The increase was the result of better factory utilization, lower operating expenses, favourable geographical sales mix coupled with overall impact of cost reduction measures implemented in 2020.
| ORDER INTAKE | Q1 | |
|---|---|---|
| 2021 | 2020 | |
| Orders, MSEK | 374 | 337 |
| Change, MSEK | 38 | -9 |
| Change, % | 11.2% | -2.6% |
| Whereof: | ||
| Volume & price, % | 16.9% | -4.5% |
| Exchange rate, % | -5.8% | 1.9% |
| Acquisition & divestment, % | 0.0% | 0.0% |
| REVENUE | Q1 | |
| --- | --- | --- |
| 2021 | 2020 | |
| Revenue, MSEK | 234 | 251 |
| Change, MSEK | -17 | -92 |
| Change, % | -6.9% | -26.9% |
| Whereof: | ||
| Volume & price, % | -2.4% | -28.2% |
| Exchange rate, % | -4.5% | 1.3% |
| Acquisition & divestment, % | 0.0% | 0.0% |
| EBITA | Q1 | |
| --- | --- | --- |
| 2021 | 2020 | |
| EBITA, MSEK | 35 | 33 |
| Change, MSEK | 2 | -26 |
| Change, % | 6.9% | -44.7% |
| Whereof: | ||
| Volume & price, % | 7.9% | -44.5% |
| Exchange rate, % | -1.1% | -0.2% |
| Acquisition & divestment, % | 0.0% | 0.0% |
Orderintake and revenues by Quarters
EBITA % & EBITA By Quarters
Alimak Group AB
Interim Report Q1 January – March 2021
Industrial
Share of order intake
Share of revenue
Order intake decreased by 3% to MSEK 246 (255) with an organic growth of 4%. The organic increase was driven by a combination of released capex investment from predominately Americas and the focus on emerging markets delivering a solid order intake. All regions delivered improved spare parts order intake as a result of increased activities in most industry segments.
Revenue decreased by 4% to MSEK 212 (221) with an organic increase of 3%. Revenue was impacted by the low backlog of refurbishment and upgrade projects due to earlier limitation on travel due to COVID-19. However, we saw an improvement, especially in Americas, with increased completion of customer projects.
EBITA increased to MSEK 50 (38), corresponding to a margin of 24% (17%). The increase was the result of better factory utilization, improved field services utilization and a result of the overall impact of cost reduction measures implemented in 2020.
| ORDER INTAKE | Q1 | |
|---|---|---|
| 2021 | 2020 | |
| Orders, MSEK | 246 | 255 |
| Change, MSEK | -9 | -43 |
| Change, % | -3.4% | -14.4% |
| Whereof: | ||
| Volume & price, % | 3.8% | -16.1% |
| Exchange rate, % | -7.2% | 1.7% |
| Acquisition & divestment, % | 0.0% | 0.0% |
| REVENUE | Q1 | |
| 2021 | 2020 | |
| Revenue, MSEK | 212 | 221 |
| Change, MSEK | -9 | -70 |
| Change, % | -4.0% | -24.0% |
| Whereof: | ||
| Volume & price, % | 2.6% | -25.5% |
| Exchange rate, % | -6.6% | 1.5% |
| Acquisition & divestment, % | 0.0% | 0.0% |
| EBITA | Q1 | |
| 2021 | 2020 | |
| EBITA, MSEK | 50 | 38 |
| Change, MSEK | 12 | -17 |
| Change, % | 31.7% | -30.4% |
| Whereof: | ||
| Volume & price, % | 35.8% | -30.3% |
| Exchange rate, % | -4.1% | -0.1% |
| Acquisition & divestment, % | 0.0% | 0.0% |
Orderintake and revenues by Quarters
EBITA % & EBITA By Quarters
Alimak Group AB
Interim Report Q1 January – March 2021
Wind
Share of order intake
Equipment Service
Share of revenue
Equipment Service
Order intake decreased by 27% to MSEK 164 (224), down 20% organically. The decrease is mainly driven down by our profit before growth focus and the decision to only take orders for tower internals which meet our margin requirements. The main impact of this was in China, but also in the US. Investment decisions where delayed in some European and Brazilian lift projects in the quarter. Order intake was good in northern Europe, particularly regarding equipment in Denmark and Services in the UK.
Revenue decreased by 11% to MSEK 172 (194), down 2% organically. The decrease was due to low order backlog entering 2021 with a slow start of the year in most markets.
The tower internal business has been an issue since 2019 where the business saw a major drop in order intake and revenue. Throughout the year 2021, we believe order intake related to tower internals will be 60 MSEK lower than last year and revenues down 100 MSEK. We should then be at a sustainable level for 2022 and onwards.
EBITA was MSEK 15 (16), corresponding to a margin of 9% (8,4%). The increased margin is the result of the overall impact of cost reduction measures implemented in 2020.
Orderintake and revenues by Quarters
| ORDER INTAKE | Q1 | |
|---|---|---|
| 2021 | 2020 | |
| Orders, MSEK | 164 | 224 |
| Change, MSEK | -60 | -2 |
| Change, % | -26.7% | -1.0% |
| Whereof: | ||
| Volume & price, % | -20.2% | -2.7% |
| Exchange rate, % | -6.6% | 1.7% |
| Acquisition & divestment, % | 0.0% | 0.0% |
| REVENUE | Q1 | |
| 2021 | 2020 | |
| Revenue, MSEK | 172 | 194 |
| Change, MSEK | -22 | -84 |
| Change, % | -11.2% | -30.1% |
| Whereof: | ||
| Volume & price, % | -1.9% | -31.3% |
| Exchange rate, % | -9.4% | 1.2% |
| Acquisition & divestment, % | 0.0% | 0.0% |
| EBITA | Q1 | |
| 2021 | 2020 | |
| EBITA, MSEK | 15 | 16 |
| Change, MSEK | -1 | -10 |
| Change, % | -5.0% | -37.3% |
| Whereof: | ||
| Volume & price, % | 0.8% | -40.8% |
| Exchange rate, % | -5.9% | 3.5% |
| Acquisition & divestment, % | 0.0% | 0.0% |
EBITA % & EBITA By Quarters
Alimak Group AB
Interim Report Q1 January – March 2021
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, April 21, 2021
Alimak Group AB (publ) corporate identity number 556714-1857
Ole Kristian Jødahl
Board Member
President and CEO
This interim report has not been reviewed by the company's auditors.
Alimak Group AB
Interim Report Q1 January – March 2021
Condensed statement of comprehensive income, Group
| Amounts in MSEK | Note | Q1 2021 | Q1 2020 |
|---|---|---|---|
| Revenue | 2 | 845.6 | 915.8 |
| Cost of sales | -567.6 | -624.6 | |
| Gross profit | 278.0 | 291.2 | |
| Operating expenses | -191.6 | -223.6 | |
| Operating profit (EBIT) | 86.4 | 67.6 | |
| Financial net | -3.5 | -14.1 | |
| Profit before tax (EBT) | 82.9 | 53.5 | |
| Income tax | -20.4 | -12.1 | |
| Result for the period | 62.5 | 41.4 | |
| Attributable to owners of the parent company | 62.5 | 41.4 | |
| Earnings per share, basic and diluted, SEK | 1.15 | 0.76 | |
| OTHER COMPREHENSIVE INCOME | |||
| Items that will not be reclassified to net profit for the period | |||
| Remeasurements of defined benefit pension plans | 22.4 | -9.4 | |
| Income tax relating to remeasurements of pension plans | -4.6 | 2.0 | |
| Total | 17.8 | -7.4 | |
| Items that may be reclassified to net profit for the period | |||
| Forreign exchange translation differences | 126.5 | 148.9 | |
| Change in fair value of cash flow hedges | -9.2 | 3.5 | |
| Income tax relating to change in fair value of cash flow hedges | 2.8 | -0.9 | |
| Total | 120.1 | 151.5 | |
| Other comprehensive income | 137.9 | 144.1 | |
| Total comprehensive income | 200.4 | 185.5 | |
| Attributable to owners of the parent company | 200.4 | 185.5 |
Alimak Group AB
Interim Report Q1 January – March 2021
Condensed statement of financial position, Group
| Amounts in MSEK | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
|---|---|---|---|
| ASSETS | |||
| Goodwill and other Intangible assets | 2,914.4 | 3,086.4 | 2,831.8 |
| Property, plant and and equipment | 359.3 | 381.8 | 351.4 |
| Right-of-use assets | 201.4 | 254.5 | 207.9 |
| Financial and other non-current assets | 267.4 | 162.4 | 215.1 |
| Total non-current assets | 3,742.5 | 3,885.1 | 3,606.2 |
| Inventories | 470.9 | 670.5 | 439.0 |
| Contract assets | 254.9 | 349.6 | 291.5 |
| Trade receivables | 752.5 | 935.5 | 769.2 |
| Other receivables and assets | 164.5 | 183.6 | 199.4 |
| Prepaid expenses and accrued income | 67.6 | 81.3 | 64.3 |
| Short term investments | 27.7 | 61.3 | 24.1 |
| Cash and cash equivalents | 192.7 | 215.4 | 225.6 |
| Total current assets | 1,930.9 | 2,497.2 | 2,013.2 |
| TOTAL ASSETS | 5,673.4 | 6,382.3 | 5,619.4 |
| EQUITY AND LIABILITIES | |||
| Shareholders equity | 3,728.3 | 3,870.2 | 3,527.9 |
| Long-term borrowings | 555.5 | 943.7 | 666.8 |
| Lease liability | 152.1 | 196.9 | 158.1 |
| Other long term liabilities | 382.0 | 371.3 | 382.9 |
| Total non-current liabilities | 1,089.6 | 1,511.9 | 1,207.8 |
| Short-term borrowings | 58.3 | 122.8 | 48.7 |
| Lease liability | 57.2 | 63.0 | 56.5 |
| Contract liabilities | 53.8 | 94.9 | 75.8 |
| Trade payables | 235.1 | 253.6 | 246.1 |
| Other current liabilities | 451.1 | 465.9 | 456.6 |
| Total current liabilities | 855.5 | 1,000.2 | 883.7 |
| TOTAL EQUITY AND LIABILITIES | 5,673.4 | 6,382.3 | 5,619.4 |
Alimak Group AB
Interim Report Q1 January – March 2021
12
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 2020 | 1.1 | 2,914.6 | 227.8 | -3.2 | 543.9 | 3,684.2 |
| Result for the period | - | - | - | - | 41.4 | 41.4 |
| Changes of fair value | - | - | - | 3.5 | - | 3.5 |
| Revaluation of pension plans | - | - | - | - | -9.4 | -9.4 |
| Tax attributable to revaluations | - | - | - | -0.9 | 2.0 | 1.1 |
| Translation difference | - | - | 148.9 | - | - | 148.9 |
| Total comprehensive income | - | - | 148.9 | 2.6 | 34.0 | 185.5 |
| Share based payments | - | 0.5 | - | - | - | 0.5 |
| Closing balance, 31 Mar 2020 | 1.1 | 2,915.1 | 376.7 | -0.6 | 577.9 | 3,870.2 |
| Result for the period | - | - | - | - | 141.3 | 141.3 |
| Changes of fair value | - | - | - | -6.2 | - | -6.2 |
| Revaluation of pension plans | - | - | - | - | -14.3 | -14.3 |
| Tax attributable to revaluations | - | - | - | 1.2 | 2.1 | 3.3 |
| Translation difference | - | - | -372.1 | - | - | -372.1 |
| Total comprehensive income | - | - | -372.1 | -5.0 | 129.1 | -248.0 |
| Dividend | - | - | - | - | -94.3 | -94.3 |
| Closing balance, 31 Dec 2020 | 1.1 | 2,915.1 | 4.6 | -5.6 | 612.7 | 3,527.9 |
| Opening balance, 1 Jan 2021 | 1.1 | 2,915.1 | 4.6 | -5.6 | 612.7 | 3,527.9 |
| Result for the period | - | - | - | - | 62.5 | 62.5 |
| Changes of fair value | - | - | - | -9.2 | - | -9.2 |
| Revaluation of pension plans | - | - | - | - | 22.4 | 22.4 |
| Tax attributable to revaluations | - | - | - | 2.8 | -4.6 | -1.8 |
| Translation difference | - | - | 126.5 | - | - | 126.5 |
| Total comprehensive income | - | - | 126.5 | -6.4 | 80.3 | 200.4 |
| Closing balance, 31 Mar 2021 | 1.1 | 2,915.1 | 131.1 | -12.0 | 693.0 | 3,728.3 |
Alimak Group AB
Interim Report Q1 January – March 2021
13
Cash flow statement, Group
| Amounts in MSEK | Q1 2021 | Q1 2020 |
|---|---|---|
| Operating activities | ||
| Profit before tax | 82.9 | 53.5 |
| Depreciation, amortisation and impairment losses | 39.5 | 47.9 |
| Other non-cash items | -4.1 | -3.4 |
| Income taxes paid | -22.9 | -125.8 |
| Cashflow before change in working capital | 95.4 | -27.8 |
| Change in working capital | ||
| Change in inventory | -12.7 | -40.0 |
| Change in contract assets | 53.1 | 19.2 |
| Change in operating receivables | 33.0 | 136.6 |
| Change in operating liabilities | -57.1 | -75.9 |
| Cash flow from working capital | 16.3 | 39.9 |
| Cash flow from operating activities | 111.7 | 12.1 |
| Investing activities | ||
| Purchase of intangible fixed assets | -3.4 | -8.4 |
| Purchase of property, plant and equipment | -16.0 | -16.8 |
| Net change in short term financial investments | -2.2 | 0.1 |
| Cash flow from investing activities | -21.6 | -25.1 |
| Financing activities | ||
| Proceeds from borrowings | 11.7 | 46.4 |
| Repayment of borrowings | -129.5 | -120.0 |
| Repayment of Lease liability | -14.8 | -19.7 |
| Cash flow from financing activities | -132.6 | -93.3 |
| Net change in cash and cash equivalents | -42.5 | -106.3 |
| Cash & cash equivalents at beginning of period | 225.6 | 313.6 |
| Exchange rate differences in cash and cash equivalents | 9.6 | 8.1 |
| Cash & cash equivalents at end of period | 192.7 | 215.4 |
Alimak Group AB
Interim Report Q1 January – March 2021
14
Key figures
| KEY FIGURES | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | |
| INCOME STATEMENT ITEMS (MSEK) | |||||
| Revenue | 846 | 933 | 916 | 976 | 916 |
| EBITDA | 126 | 121 | 101 | 119 | 116 |
| EBITA | 95 | 86 | 67 | 87 | 79 |
| EBIT | 86 | 77 | 59 | 74 | 68 |
| Result for the period | 63 | 50 | 41 | 51 | 41 |
| Total comprehensive income, MSEK | 200 | -127 | 4 | -125 | 186 |
| BALANCE SHEET ITEMS (MSEK) | |||||
| Total assets | 5,673 | 5,619 | 6,022 | 6,136 | 6,382 |
| Capital employed | 4,331 | 4,208 | 4,508 | 4,668 | 4,916 |
| Equity | 3,728 | 3,528 | 3,655 | 3,651 | 3,870 |
| Net debt | 603 | 680 | 854 | 1,017 | 1,045 |
| Goodwill and other intangible assets | 2,914 | 2,832 | 2,954 | 2,969 | 3,086 |
| Capital employed, excluding goodwill | 2,003 | 1,948 | 2,163 | 2,307 | 2,477 |
| Working capital | 1,088 | 1,050 | 1,178 | 1,320 | 1,414 |
| Cash and cash equivalents | 193 | 226 | 229 | 222 | 215 |
| CASH FLOW ITEMS (MSEK) | |||||
| Cash flow from working capital | 16 | 55 | 104 | 23 | 40 |
| Cash flow from operating activities | 112 | 164 | 206 | 123 | 12 |
| Cash flow for the period | -42 | 8 | 13 | 20 | -106 |
| Depreciations | -31 | -35 | -34 | -32 | -36 |
| Amortizations | -9 | -9 | -9 | -13 | -12 |
| Purchase of intangible fixed assets | -3 | -3 | 0 | -3 | -8 |
| Purchase of property, plant and equipment | -16 | -5 | -23 | -16 | -17 |
| Rolling 12 Months | |||||
| Order intake | 3,768 | 3,761 | 3,990 | 4,142 | 4,329 |
| EBITDA | 467 | 456 | 508 | 595 | 687 |
| EBITA | 335 | 319 | 367 | 451 | 537 |
| EBIT | 296 | 278 | 323 | 405 | 493 |
| Result for the period | 204 | 183 | 221 | 279 | 337 |
| Total comprehensive income, MSEK | -48 | -62 | 71 | 235 | 495 |
| Cash flow from operating activities | 605 | 505 | 567 | 496 | 478 |
| Cash flow for the period | -2 | -66 | 2 | -101 | -81 |
Alimak Group AB
Interim Report Q1 January – March 2021
15
Key figures (cont)
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | |
| GROWTH (Year-Over-Year) | |||||
| Order intake, total % | 0.6 | -21.3 | -14.6 | -16.3 | -3.1 |
| Order intake, organic % | 7.3 | -13.8 | -8.6 | -15.0 | -5.1 |
| Order intake, acquisitions % | 0.7 | 0.2 | 0.0 | 0.0 | 0.0 |
| Revenue, total % | -7.7 | -18.4 | -16.0 | -18.2 | -21.5 |
| Revenue, organic % | -2.1 | -11.4 | -10.3 | -17.4 | -23.4 |
| Revenue, acquisitions % | 1.7 | 0.4 | 0.0 | 0.0 | 0.0 |
| FINANCIAL RATIOS | |||||
| Gross margin % | 32.9 | 31.9 | 31.4 | 32.1 | 31.8 |
| EBITDA margin % | 14.9 | 13.0 | 11.0 | 12.2 | 12.6 |
| EBITA margin % | 11.2 | 9.2 | 7.3 | 8.9 | 8.7 |
| Operating expenses % of revenue | 22.7 | 23.6 | 25.0 | 24.5 | 24.4 |
| Depreciation and amortization % of revenue | 4.7 | 4.6 | 4.7 | 4.6 | 5.2 |
| Investments % of revenue | 2.3 | 0.9 | 2.5 | 2.0 | 2.7 |
| Equity ratio % | 65.7 | 62.8 | 60.7 | 59.5 | 60.6 |
| Return on equity % | 5.5 | 5.0 | 6.0 | 7.8 | 9.1 |
| Return on capital employed % | 6.8 | 6.2 | 6.8 | 8.5 | 10.2 |
| Return in capital employed, excluding goodwill % | 14.8 | 15.1 | 13.5 | 16.9 | 20.0 |
| Net debt/EBITDA, ratio | 1.29 | 1.50 | 1.68 | 1.71 | 1.52 |
| Interest coverage ratio, times | -17.7 | 13.8 | 6.4 | 8.0 | 7.0 |
| SHARE RATIOS (SEK) | |||||
| Number of shares, thousands | 54,158 | 54,158 | 54,158 | 54,158 | 54,158 |
| Earnings per share | 1.15 | 0.92 | 0.75 | 0.94 | 0.76 |
| Equity per share | 68.84 | 65.14 | 67.48 | 67.41 | 71.50 |
| Cash flow per share | -0.78 | 0.15 | 0.23 | 0.37 | -1.96 |
| OTHER | |||||
| Number of Employees - Full Time Equivalent | 2,033 | 2,049 | 2,087 | 2,136 | 2,200 |
Alimak Group AB
Interim Report Q1 January – March 2021
16
Historical quarterly data 2019 – 2021
| Amounts in MSEK | 2021 | 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Order Intake | ||||||||||
| BMU | 289 | 262 | 225 | 237 | 252 | 327 | 304 | 384 | 231 | |
| Construction | 374 | 245 | 216 | 291 | 337 | 255 | 254 | 300 | 346 | |
| Industrial | 246 | 187 | 217 | 209 | 255 | 256 | 231 | 272 | 298 | |
| Wind | 164 | 152 | 230 | 225 | 224 | 235 | 252 | 195 | 226 | |
| Total | 1,073 | 845 | 888 | 962 | 1,067 | 1,073 | 1,039 | 1,150 | 1,101 | |
| Revenue | ||||||||||
| BMU | 228 | 247 | 227 | 238 | 251 | 300 | 288 | 322 | 256 | |
| Construction | 234 | 255 | 246 | 256 | 251 | 350 | 273 | 419 | 343 | |
| Industrial | 212 | 245 | 203 | 248 | 221 | 269 | 312 | 269 | 290 | |
| Wind | 172 | 186 | 240 | 234 | 194 | 224 | 211 | 184 | 277 | |
| Total | 846 | 933 | 916 | 976 | 916 | 1,143 | 1,084 | 1,193 | 1,167 | |
| EBITA | ||||||||||
| BMU | -6 | -2 | -21 | -3 | -8 | 14 | 14 | 15 | 11 | |
| Construction | 35 | 25 | 30 | 33 | 33 | 61 | 48 | 76 | 59 | |
| Industrial | 50 | 42 | 32 | 38 | 38 | 53 | 64 | 53 | 55 | |
| Wind | 15 | 21 | 26 | 19 | 16 | 6 | 25 | 28 | 26 | |
| Total | 95 | 86 | 67 | 87 | 79 | 134 | 152 | 172 | 151 | |
| EBIT | ||||||||||
| BMU | -7 | -4 | -22 | -9 | -13 | 10 | 9 | 11 | 6 | |
| Construction | 34 | 25 | 30 | 33 | 32 | 60 | 48 | 75 | 59 | |
| Industrial | 50 | 41 | 31 | 37 | 38 | 53 | 64 | 53 | 55 | |
| Wind | 10 | 15 | 20 | 13 | 10 | 0 | 20 | 22 | 20 | |
| Total | 86 | 77 | 59 | 74 | 68 | 123 | 141 | 161 | 140 |
Following the reorganisation that forms the base of the New Heights programme, the Group is since January 1, 2021 organised into four, customer centric divisions: Construction, Industrial, BMU and Wind. The subsequent reporting structure is also effective as of January 1, 2021 and is reported for first time in the interim report for the first quarter 2021. Numbers for periods before Q1 2021 are restated according to the new organisation.
Alimak Group AB
Interim Report Q1 January – March 2021
Bridge
| In MSEK | Q1 2021 | Q1 2020 |
|---|---|---|
| EBIT | 86.4 | 67.6 |
| Add back: | ||
| Amortization | 8.5 | 11.7 |
| EBITA | 94.9 | 79.3 |
| Add back: | ||
| Depreciation | 31.0 | 36.2 |
| EBITDA | 125.9 | 115.5 |
| In MSEK | 31 Mar 2021 | 31 Mar 2020 |
| --- | --- | --- |
| Non-current interest bearing debts | 555.5 | 943.7 |
| Current interest bearing debts | 58.3 | 122.8 |
| Non-current lease liability | 152.1 | 196.9 |
| current lease liability | 57.2 | 63.0 |
| Deduct: | ||
| Long term interest bearing receivables | 0.1 | 4.4 |
| Short term interest bearing receivables | 27.7 | 61.3 |
| Cash and cash equivalents | 192.7 | 215.4 |
| Net debt | 602.5 | 1,045.3 |
| Net debt | 602.5 | 1,045.3 |
| Add: | ||
| Shareholders equity | 3,728.3 | 3,870.2 |
| Capital Employed | 4,330.8 | 4,915.5 |
Alimak Group AB
Interim Report Q1 January – March 2021
18
Condensed Income statement, parent company
| Amounts in MSEK | Q1 2021 | Q1 2020 |
|---|---|---|
| Revenue | - | 2.8 |
| Operating expenses | -7.0 | -9.2 |
| Operating profit/loss (EBIT) | -7.0 | -6.4 |
| Financial net | 5.7 | 6.3 |
| Profit/loss after financial items | -1.3 | -0.1 |
| Profit/loss before tax (EBT) | -1.3 | -0.1 |
| Income tax | 0.4 | 0.0 |
| Result for the period | -0.9 | -0.1 |
| Other comprehensive income | - | - |
| Total comprehensive income | -0.9 | -0.1 |
Condensed Balance sheet, parent company
| Amounts in MSEK | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
|---|---|---|---|
| Non-current assets | |||
| Shares in group companies | 1,898.4 | 1,898.4 | 1,898.4 |
| Other non-current assets | 9.6 | 2.5 | 10.0 |
| Total non-current assets | 1,908.0 | 1,900.9 | 1,908.4 |
| Current assets | |||
| Receivables from group companies | 1,676.0 | 1,638.5 | 1,617.0 |
| Other short term receivables | 17.4 | 2.7 | 28.1 |
| Cash and cash equivalents | - | - | 11.0 |
| Total current assets | 1,693.4 | 1,641.2 | 1,656.1 |
| TOTAL ASSETS | 3,601.4 | 3,542.1 | 3,564.5 |
| EQUITY AND LIABILITIES | |||
| Shareholders equity | 3,031.4 | 2,838.1 | 3,032.3 |
| Untaxed reserves | 63.2 | 47.3 | 63.2 |
| Non-current liabilities, interest bearing | - | 38.6 | - |
| Current liabilities, interest bearing | 16.0 | 30.6 | - |
| Liabilities to group companies | 466.7 | 572.6 | 438.3 |
| Other current liabilities | 24.1 | 14.9 | 30.7 |
| TOTAL EQUITY AND LIABILITIES | 3,601.4 | 3,542.1 | 3,564.5 |
Alimak Group AB
Interim Report Q1 January – March 2021
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, 2021. 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.
A detailed description of the Groups risks and uncertainties can be found in the Annual report 2020. There are no significant changes in risks in Q1 2021.
NOTE 2. REVENUE SPLIT
| Amounts in MSEK | Q1 2021 | Q1 2020 |
|---|---|---|
| Europe | 317.7 | 316.8 |
| APAC | 320.7 | 342.7 |
| Americas | 202.7 | 247.8 |
| Other markets | 4.5 | 8.5 |
| Total | 845.6 | 915.8 |
| Over time | ||
| BMU | 157.3 | 185.3 |
| Construction 1) | 45.1 | 49.1 |
| Industrial | 3.1 | 11.8 |
| Wind | - | - |
| Total over time | 205.5 | 246.2 |
| Point in time | ||
| BMU | 71.0 | 65.3 |
| Construction | 188.4 | 204.9 |
| Industrial | 208.8 | 205.8 |
| Wind | 171.9 | 193.6 |
| Total point in time | 640.1 | 669.6 |
| Total | 845.6 | 915.8 |
1) Part of business area Construction is accounted for applying IFRS 16, Leases.
Alimak Group AB
Interim Report Q1 January – March 2021
20
NOTE 3. FINANCIAL INSTRUMENTS
| Amounts in MSEK | Total carrying amount | ||
|---|---|---|---|
| 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 | |
| FINANCIAL ASSETS | |||
| Derivative financial instruments | - | 1.6 | 6.2 |
| Other financial receivables | 1,030.6 | 1,168.8 | 1,010.1 |
| Cash and cash equivalents | 192.7 | 215.4 | 225.6 |
| Total | 1,223.3 | 1,385.8 | 1,241.9 |
| FINANCIAL LIABILITIES | |||
| Derivative financial instruments | 23.7 | 4.5 | 5.0 |
| Interest bearing debts | 614.2 | 1,066.9 | 716.5 |
| Other financial liabilities | 622.0 | 732.6 | 653.7 |
| Total | 1,259.9 | 1,804.0 | 1,375.2 |
Fair values are the same as carrying values for all financial assets and liabilities.
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE
| 31 Mar 2021 | Level 2 |
|---|---|
| Financial assets | |
| Currency derivatives | - |
| Total | - |
| Financial liabilities | |
| Currency derivatives | 23.7 |
| Total | 23.7 |
| 31 Mar 2020 | Level 2 |
| Financial assets | |
| Currency derivatives | 1.6 |
| Total | 1.6 |
| Financial liabilities | |
| Currency derivatives | 4.5 |
| Total | 4.5 |
| 31 Dec 2020 | Level 2 |
| Financial assets | |
| Currency derivatives | 6.2 |
| Total | 6.2 |
| Financial liabilities | |
| Currency derivatives | 5.0 |
| Total | 5.0 |
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 Q1 January – March 2021
NOTE 4. ACQUISITIONS
No acquisitions are made in Q1 2021.
In 2020 (Q2) Alimak Group made one minor acquisition, the assets of Verta Corporation, an American service provider with a large share of the portfolio consisting of Manntech units.
NOTE 5. ASSETS PLEDGED AND CONTINGENT LIABILITIES
As of March 31, 2021, the maximum potential future payments Alimak Group could be required to make under issued financial guarantees totalled MSEK 417.1 (March 31 2020, 477.9, December 31 2020 361.6) of which MSEK 416.4 (March 31 477.3, December 31 2020 361.0) refers to indemnity bonds for commitments to customers. Assets pledged totalled MSEK 23.8 (March 31 2020 21.0, December 31, 2020 24.5).
Alimak Group AB
Interim Report Q1 January – March 2021
FINANCIAL CALENDAR.
- The Annual General Meeting will be held on May 6, 2021 in Stockholm.
- A Capital Markets Day will be held on June 17, 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 April 22, 2021. CEO Ole Kristian Jødahl and Interim CFO Bernt Ingman will present and comment on the report. The presentation, held in English, can also be followed via audiocast.
To participate by phone – please call:
SE: +46 850558358
UK: +44 3333009270
US: +1 8332498404
Link to audiocast:
https://streams.eventcdn.net/alimak/q1-2021/
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:
Bernt Ingman, Interim CFO, Phone +46 (0)8 402 14 40
[email protected]
This information is information that Alimak Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on April 22, 2021.
About Alimak Group
Alimak Group is a world-leading provider of vertical access solutions for professional use. Through a global reach covering more than 100 countries, the Group provides products and unmatched service and support solutions leading to improved safety, productivity, resource efficiency, under the brands Alimak, CoxGomyl, Manntech, Avanti and Alimak Service. The Group has an installed base of more than 70,000 elevators, hoists, platforms, service lifts and building maintenance units around the world. Founded in Sweden 1948, the Group has its headquarters in Stockholm, 11 production and assembly facilities in 8 countries and 2,000 employees around the world. www.alimakgroup.com
ALIMAK GROUP