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ASSA ABLOY
Annual Report • Feb 4, 2022
2882_10-k_2022-02-04_781f05fb-a169-471e-a070-7ae119ff9a59.pdf
Annual Report
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Quarterly Report Q4 2021
Full-year summary 2021
4 February 2022 Experience a safer and more open world
Very strong sales growth and margin improvement
Fourth quarter
Sales and income
- Net sales increased by 10% to SEK 25,623 M (23,298), with organic growth of 10% (–5) and acquired net growth of –1% (5)
- Very strong organic sales growth in Americas and Entrance Systems and strong organic sales growth in Global Technologies and EMEIA, while organic sales were stable in Asia Pacific
- Three acquisitions with combined annual sales of about SEK 300 M were signed in the quarter
- Operating income (EBIT1 2) was SEK 4,013 M (3,475), corresponding to an operating margin of 15.7% (14.9)
- Net income1 2 amounted to SEK 3,043 M (2,582)
- Earnings per share1 2 increased to SEK 2.74 (2.33)
- Operating cash flow amounted to SEK 3,384 M (5,529)
- The Board of Directors proposes a dividend of SEK 4.20 (3.90) per share for 2021, to be distributed in two equal installments.
Fourth quarter January-December 2020 2021 Δ 2020 2021 Δ Sales, SEK M 23,298 25,623 10% 87,649 95,007 8% Of which: Organic growth –1,150 2,239 10% –7,150 8,900 11% Acquisitions and divestments 1,211 –236 –1% 3,328 1,975 2% Exchange-rate effects –1,709 322 1% –2,558 –3,517 –5% Operating income (EBIT)1 2 , SEK M 3,475 4,013 15% 11,916 14,181 19% Operating margin (EBITA)1 2 , % 15.6% 16.2% 14.3% 15.6% Operating margin (EBIT)1 2, % 14.9% 15.7% 13.6% 14.9% Income before tax1 2 , SEK M 3,306 3,819 16% 11,133 13,538 22% Net income1 2 , SEK M 2,582 3,043 18% 8,375 10,901 30% Operating cash flow, SEK M 5,529 3,384 –39% 14,560 13,265 –9% Earnings per share1 2, SEK 2.33 2.74 18% 7.54 9.81 30%
Organic growth
10%
Operating income1 2
15%
Earnings per share1 2
18%
1 Excluding costs before income tax for restructuring programs in fourth quarter 2020, totalling SEK –1,366 M. The corresponding cost after tax was SEK –1,112 M
2 Excluding non-cash operating income in third quarter 2020 from revaluation at fair value of 39%
ownership in agta record, totaling SEK 1,909 M for the year. The operating income had no tax impact.
Comments by the President and CEO
Very strong sales growth and margin improvement
We can look back at another year that was influenced to a large degree by the pandemic. As many restrictions were phased out, the activity level improved and for 2021 we report an organic sales growth of 11% and an operating margin of 14.9%.
Despite continued supply-chain challenges and reintroduced restrictions, during the fourth quarter our organic sales growth was very strong at 10%. This was also supported by strong price realization and good operational execution. In EMEIA, the organic sales growth was strong, driven by the Nordic region. Americas division reports very strong organic sales growth of 17% driven by high demand in the nonresidential segment in the US, Latin America and continued solid residential sales. Due to the Covid-related lockdowns and continued unfavorable market conditions in China, sales in Asia Pacific division were stable. Global Technologies reported strong organic growth of 7% driven by strong development in Global Solutions, but semiconductor shortages continued to impact our sales. Entrance Systems posted another very strong quarter with organic growth of 14%, driven by the Perimeter Security, Residential and Industrial segments.
Operating income increased by 15% to SEK 4,013 M and the operating margin was 15.7%. Adjusted for bad-debt provisions of SEK 100 M in China, we reached our margin target in the quarter. Thanks to strong operational execution our operating leverage was 23%, despite record-high raw material costs as well as logistic challenges and component shortages. Operating cash flow was strong and reached SEK 3,384 M.
Accelerating growth
During the year, we have turned more of our focus to growth-initiating activities. The transition to electromechanical products continues to be at the core of these initiatives. Our underlying sales in electromechanical products grew by more than 15% in our three regional divisions during the quarter, enabled by our continued investments in products and solutions. We also announced the enhancement of our current Mobile Access solution to include Room Key in Apple Wallet on iPhone and Apple Watch, as launched by Hyatt in December. We are still at the beginning of the transformation to smarter and even more user-friendly access solutions and there are almost unlimited opportunities.
We continue to execute on our acquisition strategy, and we have a strong pipeline. During 2021 we signed 15 acquisitions with annual sales of about SEK 16 billion, including the acquisition of HHI, which we now expect to close during 2022.
Finally, I would like to thank you for your continued trust in ASSA ABLOY and look forward to a new year where I am confident that we will continue to deliver great shareholder value.
Stockholm, 4 February 2022
Nico Delvaux President and CEO
Operating cash flow by quarter and last 12 months
Operating cash flow, 12 months
Fourth quarter
The Group's sales increased by 10% to SEK 25,623 M (23,298). Organic growth amounted to 10% (–5). Growth from acquisitions and divestments was –1% (5), of which 1% (6) were acquisitions and –2% (–1) were divestments. Exchangerates affected sales by 1% (–7).
The Group's operating income3 4 (EBIT) amounted to SEK 4,013 M (3,475), an increase of 15%. The corresponding operating margin was 15.7% (14.9). Increased bad debt provisions of SEK 100 M in China negatively impacted the operating result. Last year, Gardesa, a residential door business in Italy, was divested with a capital loss and exit costs amounting to SEK 185 M. Exchangerates had an impact of SEK 9 M (–321) on EBIT. Operating income before amortizations from acquisitions3 4 (EBITA) amounted to SEK 4,161 M (3,634). The corresponding EBITA margin was 16.2% (15.6).
Net financial items amounted to SEK –194 M (–169). The Group's income before tax3 4 was SEK 3,819 M (3,306), an increase of 16% compared with last year. Exchange-rates had an impact of SEK 18 M (–317) on income before tax. The profit margin3 4 was 14.9% (14.2).
Earnings per share3 4 amounted to SEK 2.74 (2.33), an increase of 18% compared with last year. Operating cash flow totaled SEK 3,384 M (5,529), which corresponds to a cash conversion of 0.89 (1.67).
Full year
The Group's sales for the full year 2021 totaled SEK 95,007 M (87,649), representing an increase of 8%. Organic growth was 11% (–8). Growth from acquisitions and divestments was 2% (4), of which 4% (4) were acquisitions and –1% (0) were divestments. Exchange-rate effects affected sales by –5% (–3).
The Group's operating income3 4 (EBIT) in 2021 amounted to SEK 14,181 M (11,916), an increase of 19% compared with last year. The corresponding operating margin was 14.9% (13.6). Operating income before amortizations from acquisitions3 4 (EBITA) in 2021 amounted to SEK 14,782 M (12,490). The corresponding EBITA margin was 15.6% (14.3).
The effective income tax rate3 4 was 19.5% (24.8). The reduced tax rate was due to a positive one-time tax effect from an intra-Group transfer of a trademark. The effective income tax rate excluding the one-time tax effect was 24.4% for the year. Earnings per share3 4 in 2021 amounted to SEK 9.81 (7.54), an increase of 30% compared with last year. Operating cash flow totaled SEK 13,265 M (14,560), which corresponds to a cash conversion of 0.98 (1.31).
Restructuring measures
Payments related to all restructuring programs amounted to SEK 166 M (337) during the quarter. The restructuring programs proceeded according to plan and led to a personnel reduction of 286 Full-Time Equivalents for the quarter and 1,124 for the full year. At the end of the quarter provisions of SEK 658 M remained in the balance sheet for carrying out the programs.
Earnings per share by quarter and
3 Excluding costs before income tax for restructuring programs in fourth quarter 2020, totalling SEK –1,366 M. The corresponding cost after tax was SEK –1,112 M
4 Excluding non-cash operating income in third quarter 2020 from revaluation at fair value of 39% ownership in agta record, totaling SEK 1,909 M for the year. The operating income had no tax impact.
Quarterly comments by division
Opening Solutions EMEIA
Sales for the quarter in EMEIA totaled SEK 5,186 M (5,242), with organic growth of 6% (–1). Sales growth was very strong in Scandinavia, Finland, Middle-East/ Africa/India and Eastern Europe, good in DACH, and stable in the UK and France. Sales declined in South Europe and Benelux. Net sales growth from acquisitions, divestments and internal segment transfers was –6%. Operating income excluding items affecting comparability totaled SEK 806 M (670), which represents an operating margin (EBIT) of 15.5% (12.8). Gardesa, a residential door business in Italy, was divested last year with a capital loss and exit costs amounting to SEK 185 M. Return on capital employed, on an annualized basis, amounted to 16.2% (11.9). Operating cash flow before non-cash items and interest paid totaled SEK 1,142 M (1,368).
Opening Solutions Americas
Sales for the quarter in Americas totaled SEK 5,522 M (4,567), with organic growth of 17% (–4). Sales growth was very strong in US Smart Residential, Electromechanical Solutions, Security Doors, Latin America and Architectural Hardware. In US Residential, Access & High Security and Canada sales growth was strong. Sales growth from acquisitions was 1%. Operating income excluding items affecting comparability totaled SEK 1,116 M (915), which represents an operating margin (EBIT) of 20.2% (20.0). Return on capital employed, on an annualized basis, amounted to 30.0% (24.4). Operating cash flow before noncash items and interest paid totaled SEK 586 M (1,578).
Opening Solutions Asia Pacific
Sales for the quarter in Asia Pacific totaled SEK 2,431 M (2,418), with organic growth of 0% (–5). Sales growth was very strong in Pacific and Southeast Asia, stable in South Korea and declined significantly in China. Net sales growth from acquisitions and internal segment transfers was –2%. Operating income excluding items affecting comparability totaled SEK 88 M (199), which represents an operating margin (EBIT) of 3.6% (8.2). Return on capital employed, on an annualized basis, amounted to 5.9% (4.4). Operating cash flow before non-cash items and interest paid totaled SEK 107 M (307).
Global Technologies
Sales for the quarter in Global Technologies totaled SEK 3,958 M (3,545), with organic growth of 7% (–17). Sales growth was very strong in Extended Access, Identification Technology and Secure Issuance, but declined significantly in Physical Access Control, Identity & Access Solutions and Citizen ID. Sales growth in Global Solutions was very strong. Net sales growth from acquisitions and internal segment transfers was 3%. Operating income excluding items affecting comparability totaled SEK 623 M (582), which represents an operating margin (EBIT) of 15.7% (16.4). Return on capital employed, on an annualized basis, amounted to 10.4% (8.9). Operating cash flow before non-cash items and interest paid totaled SEK 882 M (1,069).
Entrance Systems
Sales for the quarter in Entrance Systems totaled SEK 9,127 M (7,927), with organic growth of 14% (–1). Sales growth was very strong in Perimeter Security, Residential and Industrial and stable in Pedestrian. Net sales growth from acquisitions and divestments was 0%. Operating income excluding items affecting comparability totaled SEK 1,505 M (1,251), which represents an operating margin (EBIT) of 16.5% (15.8). Return on capital employed, on an
annualized basis, amounted to 15.8% (13.9). Operating cash flow before noncash items and interest paid totaled SEK 967 M (1,350).
Acquisitions and divestments
Four acquisitions were consolidated during the quarter. The combined acquisition price for the businesses acquired during the year, including adjustments from prior-year acquisitions, amounted to SEK 1,887 M. The corresponding acquisition price on a cash and debt free basis totaled SEK 1,830 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amount to SEK 1,276 M. Estimated deferred considerations for acquisitions made during the year amounted to SEK 150 M.
On December 23 it was announced that ASSA ABLOY has acquired Małkowski-Martech, a Polish producer of fire-rated curtains and gates, listed on the Warsaw Stock Exchange. The business has some 150 employees, with its head office in Czołowo, Poland. Sales for 2020 amounted to about SEK 110 M.
On December 15 it was announced that ASSA ABLOY has acquired B&B Roadway and Security Solutions, a manufacturer of roadway safety, traffic control and perimeter security solutions in the US. The business has some 60 employees, with its head office in Texas, USA. Sales for 2020 amounted to about SEK 120 M.
On September 8, 2021, ASSA ABLOY announced it had signed a definitive agreement to acquire the HHI division of Spectrum Brands (NYSE: SPB) for a purchase price of USD 4,300 M on a cash and debt free basis. The regulatory process, which was initially expected to be finalized during the fourth quarter 2021, is still ongoing and it is now expected that the transaction will close during 2022. ASSA ABLOY has agreed to pay a termination fee of USD 350 M in certain circumstances if the transaction agreement is terminated and required regulatory approvals have not been obtained.
Sustainable development
In November 2021, ASSA ABLOY became a member of the Dow Jones Sustainability Index Europe. The index tracks the performance of the top 20% of the 600 largest European companies in the S&P Global Broad Market IndexSM that lead the field in terms of sustainability. This is recognition of our progress to date and our ambition for the future.
In 2021, we continued to drive efficiency initiatives to reduce our emissions, generation of waste and consumption of water in order to achieve our 2025 targets.
The Sustainability Report for 2021, with results of the Group's progress towards our 2025 program and detailed information about our sustainable development, will be available from 7 March 2022 on the company's website, www.assaabloy.com.
Parent company
Other operating income for the Parent company ASSA ABLOY AB totaled SEK 5,384 M (4,580) for the full year 2021. Operating income for the same period amounted to SEK 1,053 M (868). Investments in tangible and intangible assets totaled SEK 4,231 M (164). Liquidity is good and the equity ratio is 44.0% (43.6).
Dividend and Annual General meeting
A second dividend payment of SEK 1.95 per share for the financial year 2020 was distributed on 26 November 2021.
The Board of Directors proposes a dividend of SEK 4.20 (3.90) per share for the 2021 financial year, an increase with 8% compared with last year. In order to facilitate a more efficient cash management, it is proposed to pay the dividend in two equal installments, the first with record date 29 April 2022 and the second with record date 22 November 2022. If the proposal is adopted by the Annual General Meeting, the first installment is expected to be paid on 4 May 2022 and the second installment on 25 November 2022.
The Annual General Meeting 2022 will be held on 27 April 2022. The Annual Report for 2021 will be available from 7 March 2022 on the company's website, www.assaabloy.com.
Accounting principles
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the previous Annual Report have been applied. No new or amended standards with material impact on the Group´s financial reports have been applied for the first time in 2021.
This Report was prepared in accordance with IAS 34 'Interim Financial Reporting' and the Annual Accounts Act. The Report for the Parent company was prepared in accordance with the Annual Accounts Act and RFR 2 'Reporting by a Legal Entity'.
ASSA ABLOY makes use of a number of financial performance measures that are not defined in the reporting rules that the company uses – so-called 'alternative performance measures'. For definitions of financial performance measures, refer to Page 18 of this Report. Information about how these measures have been calculated is available on the company's website www.assaabloy.com.
As from 2021 ASSA ABLOY has changed its definition of the financial performance measure "Return on capital employed". The measure is now calculated as a rolling Operating income (EBIT), excluding Items Affecting Comparability, for the last twelve months as a percentage of average capital employed excluding restructuring provisions for the same period.
The calculation of the performance measure "Return on equity" has also been adjusted from 2021. The new definition takes a rolling Net income attributable to the parent company´s shareholders for the last twelve months as a percentage of average parent company´s shareholders equity for the same period.
All comparative numbers for both performance measures have been recalculated in the Interim Report.
To check how the financial measurements have been calculated for current and earlier periods, refer to the tabulated figures in this Quarterly Report and to the company's Annual Report. The Annual Reports for the years 1994 to 2020 appear on the company's website.
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source and rounding differences may therefore arise.
Transactions with related parties
No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties.
Risks and uncertainty factors
ASSA ABLOY is an international Group with a wide geographical spread, involving exposure to various forms of strategic, operational and financial risks. Strategic risks refer to changes in the business environment with potentially significant effects on ASSA ABLOY's operations and business objectives. Operational risks comprise risks directly attributable to business operations, entailing a potential impact on the Group's financial position and performance. Financial risks mainly comprise financing risk, currency risk, interest rate risk, credit risk, and risks associated with the Group's pension obligations.
Risk-taking in itself provides opportunities for continued economic growth, but naturally the risks may also have a negative impact on business operations and company goals. It is therefore essential to have a systematic and efficient risk assessment process and an effective risk management program in general. The purpose of risk management at ASSA ABLOY is not to avoid risks, but to take a controlled approach to identifying, managing and minimizing the effects of these risks. This work is based on an assessment of the probability of the risks and their potential impact on the Group.
The Covid-19 pandemic has had a substantial business impact on ASSA ABLOY. The continued impact of the pandemic on the business is difficult to predict due to the uncertainty of market conditions, but the health and safety of our employees remains our first priority.
For a more detailed description of particular risks and risk management, please see the 2020 Annual Report.
M&A and FX guidance
The guidance below relating to two key figures is provided to facilitate financial modeling but should not be viewed as forecasting market outlooks or ASSA ABLOY's business performance.
Acquisitions and divestments
It is estimated that completed acquisitions and divestments, on a rolling 12 month basis at 31 December 2021, will have an effect of –1% on sales in the first quarter of 2022 versus the same period last year, while the effect on the operating margin is estimated to be neutral in the first quarter of 2022.
Exchange-rate effects
On the basis of the currency rates on 31 December 2021, it is estimated that the weighted currency effects on sales in the first quarter of 2022 versus the same period last year will be 5%, while the effect on the operating margin is estimated to be dilutive in the first quarter of 2022.
Review
The Company's Auditors have not carried out any review of this Report for the fourth quarter of 2021.
Stockholm, 4 February 2022
Nico Delvaux President and CEO
Financial information
The Annual Report for 2021 will be published on 7 March 2022.
The Quarterly Report for the first quarter of 2022 will be published on 27 April 2022.
The Annual General Meeting 2022 will be held on 27 April 2022.
Further information can be obtained from:
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, Executive Vice President and CFO, tel.no: +46 8 506 485 72
ASSA ABLOY is holding a telephone and web conference at 09.30 on 4 February 2022
which can be followed online at www.assaabloy.com.
It is possible to submit questions by telephone on: 08–505 583 59, +44 333 300 9265 or +1 631 913 1422
This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on 4 February 2022.
ASSA ABLOY AB (publ) Box 703 40 107 23 Stockholm Visiting address Klarabergsviadukten 90, Stockholm, Sweden Tel +46 (0)8 506 485 00 Fax +46 (0)8 506 485 85 www.assaabloy.com Corporate identity number: 556059-3575 No.02/2022
Financial information – Group
| CONDENSED INCOME STATEMENT | Q4 | ||||
|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Sales | 23,298 | 25,623 | 87,649 | 95,007 | |
| Cost of goods sold | -14,633 | -15,542 | -53,336 | -57,231 | |
| Gross income | 8,665 | 10,082 | 34,313 | 37,777 | |
| Selling, administrative and R&D costs | -6,564 | -6,083 | -24,021 | -23,614 | |
| Share of earnings in associates | 8 | 13 | 257 | 19 | |
| Revaluation previously owned shares in associates | -1 | - | 1,909 | - | |
| Operating income | 2,108 | 4,013 | 12,458 | 14,181 | |
| Finance net | -169 | -194 | -782 | -643 | |
| Income before tax | 1,938 | 3,819 | 11,676 | 13,538 | |
| Tax on income | -469 | -776 | -2,504 | -2,638 | |
| Net income for the period | 1,470 | 3,043 | 9,172 | 10,901 | |
| Net income for the period attributable to: | |||||
| Parent company's shareholders | 1,471 | 3,042 | 9,171 | 10,900 | |
| Non-controlling interests | -1 | 1 | 1 | 1 | |
| Earnings per share | |||||
| Before and after dilution, SEK | 1.32 | 2.74 | 8.26 | 9.81 | |
| Before and after dilution and excluding items affecting comparability, SEK | 2.33 | 2.74 | 7.54 | 9.81 | |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOME | Q4 | Jan-dec | |||
| SEK M Net income for the period |
2020 1,470 |
2021 3,043 |
2020 9,172 |
2021 10,901 |
|
| Other comprehensive income: | |||||
| Items that will not be reclassified to profit or loss | |||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | 222 | 187 | -262 | 705 | |
| Total | 222 | 187 | -262 | 705 | |
| Items that may be reclassified subsequently to profit or loss | |||||
| Share of other comprehensive income of associates | -37 | 2 | -70 | -6 | |
| Cashflow hedges and net investment hedges, net after tax | 14 | -2 | 13 | -17 | |
| Exchange rate differences reclassified to profit or loss | -72 | - | -318 | - | |
| Exchange rate differences | -2,847 | 1,294 | -4,560 | 3,468 | |
| Total | -2,942 | 1,294 | -4,935 | 3,444 | |
| Total comprehensive income for the period | -1,251 | 4,524 | 3,975 | 15,050 | |
| Total comprehensive income for the period attributable to: | |||||
| Parent company's shareholders | -1,249 | 4,522 | 3,975 | 15,049 | |
| Non-controlling interests | -2 | 1 | 0 | 1 |
Financial information – Group
| CONDENSED BALANCE SHEET 31 Dec |
31 Dec | |
|---|---|---|
| SEK M 2020 |
2020 | 2021 |
| ASSETS | ||
| Non-current assets | ||
| 72,452 Intangible assets |
72,452 | 76,336 |
| 8,026 Property, plant and equipment |
8,026 | 8,753 |
| 3,513 Right-of-use assets |
3,513 | 3,436 |
| 637 Investments in associates |
637 | 652 |
| 212 Other financial assets |
212 | 267 |
| 1,338 Deferred tax assets |
1,338 | 1,264 |
| 86,178 Total non-current assets |
86,178 | 90,707 |
| Current assets | ||
| 10,079 Inventories |
10,079 | 13,933 |
| 13,665 Trade receivables |
13,665 | 15,844 |
| 4,750 Other current receivables and investments |
4,750 | 5,165 |
| 2,756 Cash and cash equivalents |
2,756 | 4,325 |
| 31,250 Total current assets |
31,250 | 39,267 |
| 117,428 TOTAL ASSETS |
117,428 129,975 | |
| EQUITY AND LIABILITIES Equity 58,870 Equity attributable to Parent company's shareholders |
58,870 | 69,582 |
| 9 Non-controlling interests |
9 | 9 |
| 58,879 Total equity |
58,879 | 69,592 |
| Non-current liabilities | ||
| 22,381 Long-term loans |
22,381 | 20,195 |
| Non-current lease liabilities 2,477 |
2,477 | 2,433 |
| 2,868 Deferred tax liabilities |
2,868 | 2,581 |
| 4,958 Other non-current liabilities and provisions |
4,958 | 3,899 |
| 32,683 Total non-current liabilities |
32,683 | 29,108 |
| Current liabilities | ||
| 3,514 Short-term loans |
3,514 | 5,042 |
| 1,085 Current lease liabilities |
1,085 | 1,082 |
| 7,027 Trade payables |
7,027 | 9,527 |
| 14,238 Other current liabilities and provisions |
14,238 | 15,625 |
| 25,865 Total current liabilities |
25,865 | 31,276 |
| 117,428 TOTAL EQUITY AND LIABILITIES |
117,428 129,975 |
| CHANGES IN EQUITY | Equity attributable to: | |||||
|---|---|---|---|---|---|---|
| Parent | Non | |||||
| company's | controlling | Total | ||||
| SEK M | shareholders | interests | equity | |||
| Opening balance 1 January 2020 | 59,143 | 11 | 59,154 | |||
| Net income for the period | 9,171 | 1 | 9,172 | |||
| Other comprehensive income | -5,196 | -1 | -5,197 | |||
| Total comprehensive income | 3,975 | 0 | 3,975 | |||
| Dividend | -4,276 | -1 | -4,277 | |||
| Stock purchase plans | 28 | - | 28 | |||
| Change in non-controlling interest | 1 | -1 | 0 | |||
| Total transactions with shareholders | -4,248 | -2 | -4,249 | |||
| Closing balance 31 December 2020 | 58,870 | 9 | 58,879 |
| Opening balance 1 January 2021 | 58,870 | 9 | 58,879 |
|---|---|---|---|
| Net income for the period | 10,900 | 1 | 10,901 |
| Other comprehensive income | 4,149 | 1 | 4,150 |
| Total comprehensive income | 15,049 | 1 | 15,050 |
| Dividend | -4,332 | -2 | -4,333 |
| Stock purchase plans | -5 | - | -5 |
| Total transactions with shareholders | -4,337 | -2 | -4,338 |
| Closing balance 31 December 2021 | 69,582 | 9 | 69,592 |
Financial information – Group
| CONDENSED STATEMENT OF CASH FLOWS | Q4 | Jan-dec | ||
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 | |
| OPERATING ACTIVITIES | 2020 | |||
| Operating income | 2,108 | 4,013 | 12,458 | 14,181 |
| Depreciation and amortization | 1,012 | 969 | 3,776 | 3,841 |
| Revaluation previously owned shares in associates | 1 | - | -1,909 | - |
| Restructuring costs | 1,366 | - | 1,366 | - |
| Other non-cash items | 178 | 41 | -95 | 178 |
| Restructuring payments | -337 | -166 | -747 | -563 |
| Cash flow before interest and tax | 4,328 | 4,857 | 14,850 | 17,638 |
| Interest paid and received | -189 | -162 | -694 | -569 |
| Tax paid on income | -648 | -960 | -3,104 | -3,117 |
| Cash flow before changes in working capital | 3,492 | 3,735 | 11,052 | 13,952 |
| Changes in working capital | 1,811 | -629 | 2,606 | -1,496 |
| Cash flow from operating activities | 5,303 | 3,106 | 13,658 | 12,456 |
| INVESTING ACTIVITIES | ||||
| Net investments in intangible assets and property, plant and equipment | -439 | -545 | -1,674 | -1,629 |
| Investments in subsidiaries | -454 | -963 | -6,238 | -2,121 |
| Divestments of subsidiaries | 698 | 5 | 1,170 | 699 |
| Other investments and disposals | 0 | -1 | 0 | -43 |
| Cash flow from investing activities | -195 | -1,504 | -6,741 | -3,094 |
| FINANCING ACTIVITIES | ||||
| Dividends | -2,055 | -2,166 | -4,277 | -4,333 |
| Acquisition of non-controlling interests | -16 - | -16 | - | |
| Amortization of lease liabilities | -319 | -303 | -1,275 | -1,242 |
| Net cash effect of changes in borrowings | -4,845 | -810 | 1,011 | -2,238 |
| Cash flow from financing activities | -7,234 | -3,279 | -4,558 | -7,813 |
| CASH FLOW FOR THE PERIOD | -2,127 | -1,677 | 2,359 | 1,549 |
| CASH AND CASH EQUIVALENTS | ||||
| Cash and cash equivalents at beginning of period | 4,906 | 5,995 | 442 | 2,756 |
| Cash flow for the period | -2,127 | -1,677 | 2,359 | 1,549 |
| Effect of exchange rate differences | -23 | 7 | -45 | 20 |
| Cash and cash equivalents at end of period | 2,756 | 4,325 | 2,756 | 4,325 |
Quarterly information – Group
| THE GROUP IN SUMMARY SEK M |
Q4 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
2020 | Jan-Dec Jan-Dec 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 24,946 | 22,173 | 19,953 | 22,225 | 23,298 | 21,805 | 23,648 | 23,930 | 25,623 | 87,649 | 95,007 |
| Organic growth | 1% | -3% | -18% | -5% | -5% | 4% | 23% | 7% | 10% | -8% | 11% |
| Gross income1 | 9,979 | 8,973 | 7,648 | 9,026 | 9,278 | 8,722 | 9,438 | 9,535 | 10,082 | 34,925 | 37,777 |
| Gross margin 1 | 40.0% | 40.5% | 38.3% | 40.6% | 39.8% | 40.0% | 39.9% | 39.8% | 39.3% | 39.8% | 39.8% |
| EBITDA1 | 4,969 | 3,676 | 3,024 | 4,505 | 4,487 | 4,115 | 4,552 | 4,373 | 4,982 | 15,692 | 18,023 |
| EBITDA margin 1 | 19.9% -781 |
16.6% -792 |
15.2% -787 |
20.3% -771 |
19.3% -853 |
18.9% -774 |
19.3% -812 |
18.3% -833 |
19.4% -821 |
17.9% -3,202 |
19.0% -3,241 |
| Depreciation, excl attrib. to business combinations EBITA1 |
4,188 | 2,884 | 2,237 | 3,734 | 3,634 | 3,341 | 3,740 | 3,539 | 4,161 | 12,490 | 14,782 |
| EBITA margin 1 | 16.8% | 13.0% | 11.2% | 16.8% | 15.6% | 15.3% | 15.8% | 14.8% | 16.2% | 14.3% | 15.6% |
| Amortization attrib. to business combinations | -141 | -133 | -141 | -142 | -159 | -154 | -151 | -147 | -148 | -574 | -601 |
| Operating income (EBIT)1 | 4,047 | 2,751 | 2,097 | 3,593 | 3,475 | 3,187 | 3,589 | 3,392 | 4,013 | 11,916 | 14,181 |
| Operating margin (EBIT) 1 | 16.2% | 12.4% | 10.5% | 16.2% | 14.9% | 14.6% | 15.2% | 14.2% | 15.7% | 13.6% | 14.9% |
| Items affecting comparability | -312 | - | - | 1 910 | -1 367 | - | - | - | - | 542 | - |
| Operating income (EBIT) | 3,735 | 2,751 | 2,097 | 5,502 | 2,108 | 3,187 | 3,589 | 3,392 | 4,013 | 12,458 | 14,181 |
| Operating margin (EBIT) | 15.0% | 12.4% | 10.5% | 24.8% | 9.0% | 14.6% | 15.2% | 14.2% | 15.7% | 14.2% | 14.9% |
| Net financial items | -268 | -232 | -205 | -176 | -169 | -142 | -148 | -159 | -194 | -782 | -643 |
| Income before tax | 3,467 | 2,519 | 1,892 | 5,326 | 1,938 | 3,045 | 3,441 | 3,233 | 3,819 | 11,676 | 13,538 |
| Profit margin | 13.9% | 11.4% | 9.5% | 24.0% | 8.3% | 14.0% | 14.6% | 13.5% | 14.9% | 13.3% | 14.2% |
| Tax on income | -947 | -655 | -492 | -888 | -469 | -792 | -229 | -841 | -776 | -2,504 | -2,638 |
| Net income for the period | 2,520 | 1,864 | 1,400 | 4,438 | 1,470 | 2,253 | 3,212 | 2,392 | 3,043 | 9,172 | 10,901 |
| Net income attributable to: Parent company's shareholders |
2,517 | 1,864 | 1,399 | 4,437 | 1,471 | 2,253 | 3,212 | 2,393 | 3,042 | 9,171 | 10,900 |
| Non-controlling interests | 3 | 1 | 1 | 1 | -1 | 0 | 0 | 0 | 1 | 1 | 1 |
| OPERATING CASH FLOW | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Jan-Dec Jan-Dec | |
| SEK M | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2020 | 2021 |
| Operating income (EBIT) | 3,735 | 2,751 | 2,097 | 5,502 | 2,108 | 3,187 | 3,589 | 3,392 | 4,013 | 12,458 | 14,181 |
| Reversal items affecting comparability | 312 | - | - | -1 910 | 1,367 | - | - | - | - | -542 | - |
| Depreciation and amortization Net capital expenditure |
922 -525 |
925 -491 |
927 -442 |
912 -301 |
1,012 -439 |
929 -289 |
963 -388 |
980 -407 |
969 -545 |
3,776 -1,674 |
3,841 -1,629 |
| Change in working capital | 1,364 | -1,485 | 1,460 | 820 | 1,811 | -701 | -9 | -157 | -629 | 2,606 | -1,496 |
| Interest paid and received | -233 | -172 | -244 | -90 | -189 | -122 | -175 | -110 | -162 | -694 | -569 |
| Repayment of lease liabilities | -316 | -326 | -322 | -308 | -319 | -311 | -315 | -313 | -303 | -1,275 | -1,242 |
| Non-cash items | -24 | 4 | -58 | -219 | 178 | -57 | -39 | 233 | 41 | -95 | 178 |
| Operating cash flow | 5,235 | 1,206 | 3,418 | 4,407 | 5,529 | 2,636 | 3,627 | 3,619 | 3,384 | 14,560 | 13,265 |
| Cash conversion | 1.39 | 0.48 | 1.81 | 1.29 | 1.67 | 0.87 | 1.05 | 1.12 | 0.89 | 1.31 | 0.98 |
| CHANGE IN NET DEBT SEK M |
Q4 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
Q4 2021 |
2020 | Jan-Dec Jan-Dec 2021 |
| Net debt at beginning of period | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 33,050 | 29,755 |
| Operating cash flow | -5,235 | -1,206 | -3,418 | -4,407 | -5,529 | -2,636 | -3,627 | -3,619 | -3,384 | -14,560 | -13,265 |
| Restructuring payments | 261 | 83 | 173 | 155 | 337 | 138 | 129 | 130 | 166 | 747 | 563 |
| Tax paid on income | 1,651 | 878 | 474 | 1,104 | 648 | 532 | 820 | 805 | 960 | 3,104 | 3,117 |
| Acquisitions and divestments | 1,018 | 1,584 | 86 | 4,331 | -497 | 385 | 472 | -632 | 975 | 5,504 | 1,201 |
| Dividend | - | - | 2,222 | - | 2,055 | - | 2,167 | 1 | 2,166 | 4,277 | 4,333 |
| Actuarial gain/loss on post-employment benefit oblig. | -316 | 139 | 407 | 94 | -321 | -619 | -44 | -37 | -216 | 319 | -917 |
| Change to lease liabilities | 47 | -1 | -110 | 98 | -93 | -29 | -97 | 7 | 33 | -106 | -86 |
| Exchange rate differences, etc. | -1,218 | 1,845 | -2,093 | -428 | -1,904 | 1,633 | -471 | 568 | 639 | -2,580 | 2,370 |
| Net debt at end of period | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | 29,755 | 27,071 |
| Net debt/Equity | 0.56 | 0.58 | 0.58 | 0.56 | 0.51 | 0.46 | 0.45 | 0.38 | 0.39 | ||
| NET DEBT | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| SEK M | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | ||
| Interest-bearing assets | -100 | -108 | -76 | -47 | -205 | -189 | -176 | -177 | -177 | ||
| Cash and cash equivalents | -442 | -1,676 | -3,726 | -4,906 | -2,756 | -3,610 | -3,544 | -5,995 | -4,325 | ||
| Derivative financial instruments, net | -53 | -469 | -441 | -350 | -255 | 83 | 1 | 62 | 86 | ||
| Pension provisions | 3,346 | 3,642 | 3,887 | 4,164 | 3,514 | 2,995 | 2,922 | 2,949 | 2,736 | ||
| Lease liabilities | 3,739 | 3,924 | 3,614 | 3,818 | 3,562 | 3,678 | 3,530 | 3,401 | 3,515 | ||
| Interest-bearing liabilities | 26,560 | 31,059 | 30,853 | 32,379 | 25,895 | 26,202 | 25,776 | 25,492 | 25,237 | ||
| Total | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | ||
| CAPITAL EMPLOYED AND FINANCING | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| SEK M | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | ||
| Capital employed | 92,204 | 99,428 | 93,103 | 97,232 | 88,634 | 92,818 | 92,471 | 92,954 | 96,663 | ||
| - of which goodwill | 57,662 | 61,573 | 58,243 | 64,013 | 58,344 | 60,822 | 60,198 | 60,604 | 62,502 | ||
| - of which other intangible assets and PPE | 21,191 | 22,189 | 21,064 | 21,613 | 22,134 | 22,775 | 22,190 | 22,246 | 22,587 | ||
| - of which right-of-use assets | 3,731 | 3,909 | 3,592 | 3,779 | 3,513 | 3,619 | 3,466 | 3,330 | 3,436 | ||
| - of which investments in associates | 2,595 | 2,772 | 2,665 | 685 | 637 | 638 | 626 | 636 | 652 | ||
| Net debt | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 27,071 | ||
| Non-controlling interests | 11 | 13 | 12 | 12 | 9 | 10 | 9 | 8 | 9 | ||
| Equity attributable to Parent company´s shareholders | 59,143 | 63,044 | 58,980 | 62,161 | 58,870 | 63,649 | 63,953 | 67,214 | 69,582 | ||
| OTHER KEY RATIOS ETC | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | |||
| Earnings per share, SEK | 2,27 | 1,68 | 1,26 | 3,99 | 1,32 | 2,03 | 2,89 | 2,15 | 2,74 | ||
| Earnings per share, excl IAC, SEK Shareholders' equity per share, SEK |
2,49 53,25 |
1,68 56,76 |
1,26 53,10 |
2,28 55,96 |
2,33 53,00 |
2,03 57,30 |
2,89 57,57 |
2,15 60,51 |
2,74 62,64 |
||
| Return on capital employed | 16,2% | 15,2% | 13,4% | 13,1% | 12,5% | 13,1% | 14,9% | 14,6% | 15,2% | ||
| Return on equity | 18,0% | 16,3% | 15,0% | 17,0% | 15,5% | 15,1% | 18,5% | 14,4% | 17,0% | ||
| Net debt/EBITDA | 1,8 | 2,0 | 2,1 | 2,2 | 1,9 | 1,8 | 1,6 | 1,5 | 1,5 | ||
| Average number of employees | 48,992 | 48,801 | 46,979 | 47,553 | 48,471 | 49,685 | 50,727 | 50,946 | 50,934 | ||
| Average adjusted capital employed | 92,093 | 94,636 | 95,340 | 95,452 | 95,002 | 94,230 | 93,076 | 93,287 | 93,199 | ||
| Average number of shares, thousands | 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 1,110,776 | ||||||||||
| Items affecting comparability, net of tax | -246 | - | - | 1,910 | -1,112 | - | - | - | - |
1) Excluding items affecting comparability (IAC) consisting of restructuring costs and revaluation of previously owned shares in associates.
Reporting by division
| Q4 and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Sales, external | 5,159 | 5,049 | 4,530 | 5,487 | 2,199 | 2,069 | 3,515 | 3,932 | 7,894 | 9,087 | - | - | 23,298 25,623 | |
| Sales, internal | 83 | 137 | 36 | 35 | 219 | 363 | 30 | 26 | 33 | 40 | -400 | -600 | - | - |
| Sales | 5,242 5,186 | 4,567 5,522 | 2,418 2,431 | 3,545 3,958 | 7,927 9,127 | -400 | -600 | 23,298 25,623 | ||||||
| Organic growth | -1% | 6% | -4% | 17% | -5% | 0% | -17% | 7% | -1% | 14% | - | - | -5% | 10% |
| Acquisitions and divestments | 0% | -6% | -10% | 1% | 1% | -2% | 5% | 3% | 23% | 0% | - | - | 5% | -1% |
| Exchange-rate effects | -4% | -1% | -9% | 3% | -6% | 3% | -7% | 2% | -7% | 1% | - | - | -7% | 1% |
| Share of earnings in associates | - | - | - - |
-5 | 10 | 9 | 1 | 3 | 2 | - - |
8 | 13 | ||
| EBIT, excl items affecting comparability | 670 | 806 | 915 1,116 | 199 | 88 | 582 | 623 | 1,251 1,505 | -142 | -125 | 3,475 | 4,013 | ||
| EBIT margin, excl items affecting comparability | 12.8% 15.5% | 20.0% 20.2% | 8.2% | 3.6% | 16.4% 15.7% | 15.8% 16.5% | - | - | 14.9% | 15.7% | ||||
| Restructuring costs | -448 | - | -51 | - | -303 | - | -195 | - | -220 | - | -150 | - | -1,366 | - |
| Revaluation of associate shareholding | - | - | - | - | - | - | - | - | -1 | - | - | - | -1 | - |
| Operating income (EBIT) | 223 | 806 | 864 1,116 | -104 | 88 | 387 | 623 | 1,030 1,505 | -292 | -125 | 2,108 | 4,013 | ||
| Operating margin (EBIT) | 4.2% 15.5% | 18.9% 20.2% | -4.3% | 3.6% | 10.9% 15.7% | 13.0% 16.5% | - | - | 9.0% | 15.7% | ||||
| Operating income (EBIT) | 223 | 806 | 864 | 1,116 | -104 | 88 | 387 | 623 | 1,030 | 1,505 | -292 | -125 | 2,108 | 4,013 |
| Revaluation of associate shareholding | 448 | - | 51 | - | 303 | - | 195 | - | 221 | - | 150 | - | 1,367 | - |
| Depreciation and amortization | 235 | 231 | 110 | 115 | 86 | 75 | 238 | 238 | 334 | 300 | 9 | 10 | 1,012 | 969 |
| Net capital expenditure | -109 | -136 | -47 | -102 | -45 | -87 | -77 | -85 | -117 | -127 | -44 | -8 | -439 | -545 |
| Amortization of lease liabilities | -78 | -62 | -34 | -39 | -29 | -23 | -35 | -37 | -140 | -136 | -3 | -5 | -319 | -303 |
| Change in working capital | 650 | 303 | 634 | -504 | 96 | 54 | 361 | 143 | 22 | -574 | 47 | -50 | 1,811 | -629 |
| Operating cash flow by division | 1,368 1,142 | 1,578 | 586 | 307 | 107 | 1,069 | 882 | 1,350 | 967 | -134 | -179 | 5,540 | 3,505 | |
| Non-cash items | 178 | 41 | 178 | 41 | ||||||||||
| Interest paid and received | -189 | -162 | -189 | -162 | ||||||||||
| Operating cash flow | 5,529 | 3,384 |
| Jan-Dec and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 2021 | |
| Sales, external | 18,563 20,040 | 18,907 20,356 | 7,916 | 7,549 | 14,054 14,495 | 28,210 32,568 | - | - | 87,649 95,007 | |||||
| Sales, internal | 418 | 483 | 107 | 151 | 926 | 1,170 | 105 | 109 | 113 | 123 | -1,668 -2,036 | - | - | |
| Sales | 18,982 20,522 19,013 20,507 | 8,841 8,719 14,158 14,604 28,323 32,690 | -1,668 -2,036 | 87,649 95,007 | ||||||||||
| Organic growth | -8% | 13% | -7% | 14% | -16% | 2% | -15% | 5% | -2% | 14% | - | - | -8% | 11% |
| Acquisitions and divestments | -1% | -2% | -9% | 1% | 1% | -2% | 10% | 3% | 15% | 7% | - | - | 4% | 2% |
| Exchange-rate effects | -1% | -3% | -2% | -7% | -2% | -1% | -3% | -5% | -2% | -6% | - | - | -3% | -5% |
| Share of earnings in associates | - | - | - | - | 9 | 18 | 9 | 1 | 239 | -1 | - | - | 257 | 19 |
| EBIT, excl items affecting comparability | 2,263 2,916 | 3,698 4,200 | 396 | 499 | 2,023 2,253 | 4,083 4,988 | -547 | -675 | 11,916 14,181 | |||||
| EBIT margin, excl items affecting comparability | 11.9% 14.2% | 19.4% 20.5% | 4.5% | 5.7% | 14.3% 15.4% | 14.4% 15.3% | - | - | 13.6% | 14.9% | ||||
| Restructuring costs | -448 | - | -51 | - | -303 | - | -195 | - | -220 | - | -150 | - | -1,366 | - |
| Revaluation of associate shareholding | - | - | - | - | - | - | - | - | 1 909 | - | - | - | 1,909 | - |
| Operating income (EBIT) | 1,815 2,916 | 3,647 4,200 | 93 | 499 | 1,828 2,253 | 5,772 4,988 | -697 | -675 | 12,458 14,181 | |||||
| Operating margin (EBIT) | 9.6% 14.2% | 19.2% 20.5% | 1.1% | 5.7% | 12.9% 15.4% | 20.4% 15.3% | - | - | 14.2% | 14.9% | ||||
| Operating income (EBIT) | 1,815 | 2,916 | 3,647 | 4,200 | 93 | 499 | 1,828 | 2,253 | 5,772 | 4,988 | -697 | -675 | 12,458 14,181 | |
| Revaluation of associate shareholding | 448 | - | 51 | - | 303 | - | 195 | - | -1,689 | - | 150 | - | -542 | - |
| Depreciation and amortization | 925 | 969 | 471 | 493 | 355 | 306 | 917 | 923 | 1,078 | 1,114 | 30 | 37 | 3,776 | 3,841 |
| Net capital expenditure | -407 | -475 | -267 | -351 | -192 | -182 | -430 | -250 | -330 | -361 | -47 | -10 | -1,674 | -1,629 |
| Amortization of lease liabilities | -318 | -306 | -132 | -148 | -108 | -92 | -144 | -144 | -559 | -537 | -14 | -15 | -1,275 | -1,242 |
| Change in working capital | 476 | -14 | 1,067 | -471 | 311 | -247 | 144 | 397 | 702 -1,233 | -94 | 73 | 2,606 | -1,496 | |
| Operating cash flow by division | 2,939 3,089 | 4,837 3,722 | 762 | 285 | 2,509 3,179 | 4,974 3,971 | -673 | -591 | 15,349 13,656 | |||||
| Non-cash items | -95 | 178 | -95 | 178 | ||||||||||
| Interest paid and received | -694 | -569 | -694 | -569 | ||||||||||
| Operating cash flow | 14,560 13,265 | |||||||||||||
| Capital employed | 16,849 17,063 | 13,201 15,908 | 8,191 | 8,653 | 21,044 22,326 | 30,231 32,787 | -883 | -74 | 88,634 96,663 | |||||
| - of which goodwill | 10,475 10,949 | 10,444 11,700 | 3,884 | 4,028 | 14,881 16,164 | 18,660 19,662 | - | - | 58,344 62,502 | |||||
| - of which other intangible assets and PPE | 3,485 | 3,516 | 2,713 | 2,977 | 2,375 | 2,483 | 5,100 | 5,059 | 8,362 | 8,461 | 99 | 90 | 22,134 22,587 | |
| - of which right-of-use assets | 998 | 937 | 387 | 430 | 264 | 243 | 457 | 512 | 1,390 | 1,270 | 17 | 44 | 3,513 | 3,436 |
| - of which investments in associates | 1 | 1 | - | - | 589 | 602 | 28 | 32 | 20 | 17 | - | - | 637 | 652 |
| Return on capital employed | 11.9% 16.2% | 24.4% 30.0% | 4.4% | 5.9% | 8.9% 10.4% | 13.9% 15.8% | - | - | 12.5% | 15.2% | ||||
| Average adjusted capital employed | 19,050 17,991 | 15,186 13,986 | 8,910 | 8,498 | 22,757 21,751 | 29,352 31,525 | - | - | 95,002 93,199 | |||||
| Average number of employees | 10,281 11,848 | 8,787 | 9,298 | 9,892 | 8,259 | 6,374 | 6,556 | 12,883 14,604 | 254 | 369 | 48,471 50,934 | |||
Financial information - Notes
NOTE 1 DISAGGREGATION OF REVENUE
| Sales by continent Q4 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Europe | 4,697 | 4,436 | 20 | 20 | 118 | 170 | 1,026 | 1,245 | 3,841 | 4,086 | -188 | -237 | 9,514 | 9,719 |
| North America | 96 | 128 | 4,112 | 4,927 | 213 | 365 | 1,658 | 1,656 | 3,477 | 4,436 | -141 | -245 | 9,415 11,268 | |
| Central- and South America | 18 | 22 | 406 | 542 | 13 | 25 | 150 | 157 | 16 | 19 | -11 | -9 | 592 | 755 |
| Africa | 196 | 213 | 8 | 3 | 4 | 3 | 95 | 89 | 17 | 14 | -5 | -8 | 315 | 314 |
| Asia | 216 | 351 | 19 | 28 | 1,471 | 1,176 | 427 | 609 | 333 | 323 | -36 | -57 | 2,429 | 2,429 |
| Oceania | 19 | 36 | 2 | 2 | 599 | 693 | 190 | 201 | 245 | 249 | -20 | -44 | 1,034 | 1,137 |
| Total | 5,242 | 5,186 | 4,567 | 5,522 | 2,418 | 2,431 | 3,545 | 3,958 | 7,927 | 9,127 | -400 | -600 | 23,298 25,623 | |
| Sales by continent Jan-Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Europe | 16,881 17,760 | 64 | 92 | 506 | 624 | 3,759 | 4,247 | 12,126 14,750 | -751 | -887 | 32,584 36,587 | |||
| North America | 426 | 434 | 17,354 18,288 | 797 | 1,073 | 6,795 | 6,790 | 14,160 15,803 | -593 | -734 | 38,939 41,653 | |||
| Central- and South America | 64 | 75 | 1,436 | 1,994 | 43 | 63 | 424 | 430 | 60 | 70 | -41 | -35 | 1,986 | 2,597 |
| Africa | 665 | 909 | 40 | 12 | 15 | 11 | 386 | 288 | 56 | 49 | -23 | -34 | 1,139 | 1,234 |
| Asia | 835 | 1,213 | 109 | 114 | 5,155 | 4,503 | 2,070 | 2,070 | 1,126 | 1,068 | -146 | -201 | 9,149 | 8,767 |
| Oceania | 111 | 131 | 10 | 8 | 2,326 | 2,445 | 724 | 779 | 794 | 951 | -113 | -144 | 3,852 | 4,170 |
| Total | 18,982 20,522 | 19,013 20,507 | 8,841 | 8,719 | 14,158 14,604 | 28,323 32,690 | -1,668 -2,036 | 87,649 95,007 |
| Sales by product group Q4 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Mechanical locks, lock systems and fittings | 2,488 | 2,438 | 1,929 | 2,205 | 1,161 | 1,167 | 65 | 57 | 2 | 2 | -132 | -191 | 5,512 | 5,677 |
| Electromechanical and electronic locks | 1,767 | 1,739 | 1,200 | 1,537 | 580 | 640 | 3,471 | 3,894 | 195 | 238 | -211 | -328 | 7,002 | 7,720 |
| Security doors and hardware | 844 | 882 | 1,430 | 1,770 | 657 | 578 | 8 | 7 | 566 | 777 | -21 | -37 | 3,484 | 3,977 |
| Entrance automation | 143 | 128 | 8 | 11 | 20 | 46 | - | - | 7,164 | 8,110 | -36 | -44 | 7,299 | 8,250 |
| Total | 5,242 | 5,186 | 4,567 | 5,522 | 2,418 | 2,431 | 3,545 | 3,958 | 7,927 | 9,127 | -400 | -600 | 23,298 25,623 |
| Sales by product group Jan-Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 |
| Mechanical locks, lock systems and fittings | 9,012 | 9,814 | 7,892 | 8,562 | 4,357 | 4,289 | 291 | 294 | 7 | 8 | -638 | -703 | 20,921 22,264 | |
| Electromechanical and electronic locks | 6,335 | 6,757 | 4,860 | 5,347 | 1,916 | 2,077 | 13,844 14,283 | 738 | 1,016 | -800 | -1,065 | 26,892 28,415 | ||
| Security doors and hardware | 3,131 | 3,392 | 6,224 | 6,560 | 2,497 | 2,240 | 24 | 27 | 2,364 | 2,930 | -101 | -127 | 14,139 15,023 | |
| Entrance automation | 504 | 559 | 38 | 39 | 70 | 113 | - | - | 25,214 28,737 | -129 | -141 | 25,697 29,306 | ||
| Total | 18,982 20,522 | 19,013 20,507 | 8,841 | 8,719 | 14,158 14,604 | 28,323 32,690 | -1,668 -2,036 | 87,649 95,007 |
NOTE 2 BUSINESS COMBINATIONS
Consolidated acquisitions 2021
| Number of | Approx. | Month of | ||||
|---|---|---|---|---|---|---|
| Acquisition | Division | Country | employees | sales in 2020 | consolidation | |
| Traka Iberia | Global Technologies | Spain | <50 | <50 SEK M | 2021-02 | |
| Technology Solutions | Global Technologies | United Kingdom | 25 | 30 SEK M | 2021-02 | |
| Invengo Textile Services | Global Technologies | France | 45 | 110 SEK M | 2021-03 | |
| Prosystech/SimpleK | Americas | Canada | <50 | <50 SEK M | 2021-04 | |
| Sure-Loc | Americas | USA | 45 | 120 SEK M | 2021-05 | |
| Pucon | Americas | Peru | <50 | <50 SEK M | 2021-06 | |
| New Zealand Fire Door | Asia Pacific | New Zealand | 53 | 66 SEK M | 2021-08 | |
| Capitol Door Service | Entrance Systems | USA | 50 | 150 SEK M | 2021-08 | |
| Omni-ID | Global Technologies | USA | 170 | 110 SEK M | 2021-08 | |
| MR Group | EMEIA | Portugal | 380 | 230 SEK M | 2021-10 | |
| B&B Roadway and Security S. Entrance Systems | USA | 60 | 120 SEK M | 2021-12 | ||
| Malkowski-Martech | EMEIA | Poland | 150 | 110 SEK M | 2021-12 | |
| InvoTech Systems | Global Technologies | USA | <50 | <50 SEK M | 2021-12 |
| Q4 | Jan-Dec | |||
|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 |
| Purchase prices | ||||
| Cash paid for acquisitions during the year | 516 | 982 | 8,058 | 1,743 |
| Holdbacks and deferred considerations for acquisitions during the year | -219 | 37 | 318 | 150 |
| Fair value of previously owned shares in associates | 0 | - | 3,752 | - |
| Adjustment of purchase prices for acquisitions in prior years | -21 | 0 | 5 | -6 |
| Total | 276 | 1,019 | 12,134 | 1,887 |
| Acquired assets and liabilities at fair value | ||||
| Intangible assets | 2486 | 0 | 3,281 | 151 |
| Property, plant and equipment and right-of-use assets | 48 | 92 | 929 | 118 |
| Other non-current assets | 44 | 5 | 135 | 3 |
| Inventories | -28 | 110 | 646 | 233 |
| Current receivables and investments | 76 | 201 | 1,062 | 332 |
| Cash and cash equivalents | 66 | 61 | 2,239 | 180 |
| Non-current liabilities | -525 | -21 | -1,357 | -43 |
| Current liabilities | -152 | -130 | -1,223 | -363 |
| Total | 2,015 | 319 | 5,713 | 611 |
| Goodwill | -1,739 | 700 | 6,421 | 1,276 |
| Change in cash and cash equivalents due to acquisitions | ||||
| Cash paid for acquisitions during the year | 516 | 982 | 8,058 | 1,743 |
| Cash and cash equivalents in acquired subsidiaries | -66 | -61 | -2,239 | -180 |
| Paid considerations for acquisitions in prior years | 4 | 42 | 418 | 557 |
| Total | 454 | 963 | 6,238 | 2,121 |
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.
Financial information - Notes
NOTE 3 FAIR VALUE AND CARRYING AMOUNT ON FINANCIAL ASSETS AND LIABILITIES
| 31 December 2021 | Financial instruments at fair value |
||||
|---|---|---|---|---|---|
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Financial assets at amortized cost | 20,393 | 20,393 | |||
| Financial assets at fair value through profit and loss | 52 | 52 | |||
| Derivatives - hedge accounting | 85 | 85 | 85 | ||
| Derivatives - held for trading | 177 | 177 | 177 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 34,763 | 34,960 | |||
| Financial liabilities at fair value through profit and loss | 403 | 403 | 403 | ||
| Lease liabilities | 3,515 | 3,515 | |||
| Derivatives - hedge accounting | 3 | 3 | 3 | ||
| Derivatives - held for trading | 344 | 344 | 344 | ||
| 31 December 2020 | Financial instruments at fair value |
||||
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 Level 3 | |
| Financial assets | |||||
| Loans and other receivables | 16,674 | 16,674 | |||
| Financial assets at fair value through profit and loss | 6 | 6 | |||
| Available-for-sale financial assets | 187 | 187 | 187 | ||
| Derivative instruments - hedge accounting | 240 | 240 | 240 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 32,922 | 33,480 | |||
| Financial liabilities at fair value through profit and loss | 944 | 944 | 944 | ||
| Lease liabilities | 3,562 | 3,562 | |||
| Derivatives - hedge accounting | 0 | 0 | 0 | ||
| Derivatives - held for trading | 171 | 171 | 171 |
Financial liabilities at fair value through profit and loss pertains to deferred considerations, Deferred considerations are initially measured on the day of acquisition based i.e. additional payments for acquired companies. The size of a deferred consideration is on management's best estimate regarding future outcomes and belong to usually linked to the earnings and sales performance in an acquired company during a level 3 in the hierarchy. specific period of time.
Financial information – Parent company
| CONDENSED INCOME STATEMENT Year |
Jan-Dec | ||
|---|---|---|---|
| 2020 SEK M |
2020 | 2021 | |
| 868 Operating income |
868 | 1,053 | |
| 5,363 Income before appropriations and tax |
5,363 | 6,721 | |
| 5,552 Net income for the period |
5,552 | 6,631 |
| CONDENSED BALANCE SHEET 31 Dec |
31 Dec | ||
|---|---|---|---|
| SEK M | 2020 2020 |
2021 | |
| Non-current assets | 38,961 38,961 |
46,435 | |
| Current assets | 21,069 21,069 |
18,231 | |
| Total assets | 60,030 60,030 |
64,666 | |
| Equity | 26,186 26,186 |
28,481 | |
| Untaxed reserves | 1,125 1,125 |
1,606 | |
| Non-current liabilities | 15,677 15,677 |
14,577 | |
| Current liabilities | 17,042 17,042 |
20,002 | |
| Total equity and liabilities | 60,030 60,030 |
64,666 |
Definitions of financial performance measures
acquisitions, divestments and exchange rate effects. for the last twelve months.
Operating margin (EBITDA) Net debt
Operating income before depreciation and amortization as a Interest-bearing liabilities less interest-bearing assets. percentage of sales. See the table on net debt for detailed information.
Operating margin (EBITA) Net debt/EBITDA
Operating income before amortization of intangible assets Net debt at the end of the period in relation to EBITDA for recognized in business combinations, as a percentage of sales. the last twelve months.
Operating margin (EBIT) Net debt/Equity ratio
Operating income as a percentage of sales. Net debt in relation to equity.
Profit margin (EBT) Equity ratio
Restructuring costs and significant non-recurring operating expenses Equity excluding non-controlling interests in relation to such as revaluation of previously owned shares in associates and number of outstanding shares after any potential dilution. goodwill impairment.
payments and tax paid on income minus net capital expenditure average adjusted capital employed. and repayment of lease liabilities.
items affecting comparability. company's shareholders equity for the same period.
Investments in, less disposals of, intangible assets and Net income attributable to parent company's shareholders
Depreciation, amortization and impairment of intangible assets,
Organic growth Average adjusted capital employed
Change in sales for comparable units after adjustments for Average capital employed excluding restructuring reserves
Income before tax as a percentage of sales. Shareholders' equity as a percentage of total assets.
Items affecting comparability Shareholders' equity per share
Return on capital employed
Operating cash flow Operating Income (EBIT), excluding Items Affecting Cash Flow from operating activities excluding restructuring Comparability, for the last twelwe months as a percentage of
Return on equity
Cash conversion Net income attributable to parent company's shareholders Operating cash flow in relation to income before tax excluding for the last twelve months as a percentage of average parent
Net capital expenditure Earnings per share before and after dilution
property, plant and equipment. divided by weighted average number of outstanding shares. None of the Group's outstanding long-term incentive programs Depreciation and amortization are expected to result in significant dilution in the future.
property, plant and equipment and right-of-use assets. Earnings per share before and after dilution and excluding items affecting comparability
Capital employed Net income attributable to parent company's shareholders Total assets less interest-bearing assets and non-interest- excluding items affecting comparability, net of tax, divided by bearing liabilities including deferred tax liability. weighted average number of outstanding shares. None of the Group's outstanding long-term incentive programs are expected to result in significant dilution in the future.