Earnings Release • Feb 7, 2024
Earnings Release
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Full-year summary 2023
February 7, 2024 Experience a safer and more open world
| Fourth quarter | January-December | |||||
|---|---|---|---|---|---|---|
| 2022 | 2023 | Δ | 2022 | 2023 | Δ | |
| Sales, SEK M | 32,915 | 36,970 | 12% | 120,793 | 140,716 | 16% |
| Of which: | ||||||
| Organic growth | 2,656 | 133 | 0% | 13,007 | 3,393 | 3% |
| Acquisitions and divestments | 1,336 | 3,572 | 11% | 2,126 | 10,651 | 8% |
| Exchange-rate effects | 3,300 | 349 | 1% | 10,653 | 5,879 | 5% |
| Operating income (EBIT)1, SEK M | 5,152 | 5,722 | 11% | 18,532 | 22,185 | 20% |
| Operating margin (EBITA)1, % | 16.2% | 16.2% | 15.9% | 16.5% | ||
| Operating margin (EBIT)1, % | 15.7% | 15.5% | 15.3% | 15.8% | ||
| Income before tax1, SEK M | 4,766 | 4,879 | 2% | 17,521 | 19,654 | 12% |
| Net income1, SEK M | 3,729 | 3,969 | 6% | 13,296 | 15,049 | 13% |
| Operating cash flow, SEK M | 6,588 | 7,315 | 11% | 15,808 | 25,232 | 60% |
| Earnings per share1, SEK | 3.36 | 3.56 | 6% | 11.97 | 13.54 | 13% |
1 Adjusted for items affecting comparability. Please see the section "Items affecting comparability" in the report for further details about the financial effects.
Organic growth
Operating income1 +11%
Earnings per share1
I am proud to report that 2023 was once again a successful year for ASSA ABLOY with record financial results in a year with slower economic growth. Our organic sales grew 3%, complemented by net growth from acquisitions of 8%, and the operating margin improved to 15.8%.
In the fourth quarter, and despite lower volumes, we delivered an operating margin, excluding the HHI transaction, of 16.8%, within our target range. This underlines the agility and resilience of our business model and good cost control with more than SEK 0.5 bn in cost savings in the quarter.
Sales increased 12% with a positive organic growth of 0.4%, acquired net growth of 11% and currency effects of 1%. Americas and Entrance Systems delivered good organic sales growth of 5% and 3% respectively. Americas growth was primarily driven by continued good demand within the US non-residential business and Entrance Systems had strong growth in all business areas except for the Residential segment. Asia Pacific, EMEIA and Global Technologies reported negative organic growth. Lower intra-group sales and weak export business continued to affect Asia Pacific. EMEIA's negative sales development was driven by weakness in the Nordics again this quarter, while Global Technologies had very high comparable sales figures last year mainly due to catching up with the backlog in PACS.
The operating profit excluding items affecting comparability increased by 11% to SEK 5,722 M, and the operating margin was 16.8% excluding the HHI transaction. The operating leverage was again very strong, driven by lower direct material costs, cost-savings as well as price realization. The operating cash flow also grew strongly in the quarter by 11% to a record SEK 7,315 M with a cash conversion of 150%.
Going into 2024, we will continue to execute on our strategy to accelerate our longterm profitable growth. A key activity is to lead the transition to electromechanical and digital products and solutions. While penetration rates are mostly low, we see a steadily growing demand for these solutions. During the year, electromechanical products and solutions were our fastest growing product group with an organic growth of above 10%. Another important priority for 2024 is the integration and realization of synergies in HHI.
We completed six acquisitions in the fourth quarter. This means that 24 acquisitions were completed in 2023, adding sales of approximately SEK 10 bn during the year. The integration of HHI proceeds according to plan. Going forward, acquisitions remain one of the key growth areas and the pipeline remains solid.
The macroeconomic environment continues to be uncertain. We therefore remain dedicated to mitigating any impact from potentially negative changes in demand, through local agility and focus on cost-control. To further optimize our operational footprint, we have also started to work on our next manufacturing footprint program, with a launch target towards the end of 2024.
Lastly, I would like to thank you for your continued trust and look forward to another exciting year with great opportunities for ASSA ABLOY.
Stockholm, February 7, 2024
Nico Delvaux President and CEO
Sales by quarter and last 12 months
Operating cash flow by quarter and last 12 months
The Group's sales increased by 12% to SEK 36,970 M (32,915). Organic growth amounted to 0% (9). Growth from acquisitions and divestments was 11% (5), of which 14% (5) were acquisitions and –3% (0) were divestments. Exchange rates affected sales by 1% (14).
The Group's operating income2 (EBIT) amounted to SEK 5,722 M (5,152), an increase of 11%. The corresponding operating margin was 15.5% (15.7). Exchange-rates had an impact of SEK 29 M (581) on EBIT. Operating income before amortizations from acquisitions2 (EBITA) amounted to SEK 6,008 M (5,338). The corresponding EBITA margin was 16.2% (16.2).
Net financial items amounted to SEK –843 M (–387). The Group's income before tax2 was SEK 4,879 M (4,766), an increase of 2% compared with last year. Exchange-rates had an impact of SEK –5 M (566) on income before tax2. The corresponding profit margin was 13.2% (14.5).
Earnings per share before and after dilution2 amounted to SEK 3.56 (3.36), an increase of 6% compared with last year. Operating cash flow totaled SEK 7,315 M (6,588), which corresponds to a cash conversion2 of 1.50 (1.38).
The net-debt/equity ratio amounted to 0.70 (0.37) at year-end. Financial net debt totaled SEK 64,109 M (31,732). New bonds were issued during the quarter to a total value of SEK 2,500 M while SEK 3,054 M in maturing long-term loans were repaid. The Group's long-term borrowing totaled SEK 49,917 M (20,523) while the short-term borrowing totaled SEK 9,833 M (9,304).
The Group's sales for the full year 2023 totaled SEK 140,716 M (120,793), representing an increase of 16%. Organic growth was 3% (12). Growth from acquisitions and divestments was 8% (2), of which 10% (3) came from acquisitions and –2% (–1) from divestments. Exchange-rates affected sales by 5% (13).
The Group's operating income (EBIT)2 amounted to SEK 22,185 M (18,532), an increase of 20% compared with last year. The corresponding operating margin was 15.8% (15.3). Operating income before amortizations from acquisitions2 (EBITA) amounted to SEK 23,261 M (19,187). The corresponding EBITA margin was 16.5% (15.9). The operating margin2 excluding the acquisition of HHI and divestment of the Emtek/U.S. Smart Residential business was 16.8%.
Net financial items amounted to SEK –2,531 M (–1,011), primarily due to increased interest rates and debt during the year. The effective income tax rate excluding items affecting comparability was 23.4% (24.1). The effective income tax rate including items affecting comparability was 29.2%.
Earnings per share before and after dilution2 amounted to SEK 13.54 (11.97), an increase of 13% compared with last year. Operating cash flow totaled SEK 25,232 M (15,808), an increase of 60% versus last year. The cash conversion2 for the year was 1.28 (0.90).
2 Adjusted for items affecting comparability. Please see the section "Items affecting comparability" in the report for further details about the financial effects.
The acquired inventory in HHI was revalued at fair market value, as part of the purchase price analysis. The one-time revaluation of inventory totaled SEK 466 M before taxes and has been expensed in full during the year. The corresponding cost after tax was SEK 350 M.
Impairment of goodwill and other intangible assets in the second quarter totaled SEK 2,271 M for the year, primarily related to the Citizen ID business in the Global Technologies division. The corresponding cost after tax was SEK 2,129 M.
The Emtek and Smart Residential business in the U.S. and Canada was divested in June 2023. The divestment gain, net of exit costs, totaled SEK 3,588 M for the year. The corresponding gain after tax was SEK 2,066 M.
A new Manufacturing Footprint Program (MFP) was launched in the first quarter of 2023. The restructuring cost for the year totaled SEK 1,250 M. The corresponding cost after tax was SEK 997 M.
Restructuring payments totaled SEK 613 M (404) and 190 M (171) for the full year and fourth quarter respectively. The programs proceeded according to plan. At the end of the year provisions of SEK 767 M remained in the balance sheet for carrying out these programs.
Sales for the quarter in EMEIA totaled SEK 6,339 M (6,231), with organic growth of –2% (2). Organic sales growth was strong in Middle East/Africa/India, good in South Europe, stable in Central Europe, but declined in UK/Ireland and in the Nordics. Net sales growth from acquisitions was 2%. Operating income excluding items affecting comparability totaled SEK 915 M (933), which represents an operating margin (EBIT) of 14.4% (15.0). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 14.8% (16.8). Operating cash flow before non-cash items and interest paid totaled SEK 1,836 M (1,326).
Sales for the quarter in the Americas totaled SEK 10,508 M (7,427), with organic growth of 5% (11). Organic sales growth was good in North America's non-residential segment and in the Latin America segment, but declined in the US residential segment. Net sales growth from acquisitions was 38%. Operating income excluding items affecting comparability totaled SEK 1,854 M (1,583), which represents an operating margin (EBIT) of 17.6% (21.3). The corresponding operating margin excluding the acquisition of HHI and divestment of the Emtek/U.S. Smart Residential business was 23.8%. Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 16.3% (32.1). Operating cash flow before non-cash items and interest paid totaled SEK 2,120 M (1,910).
Sales for the quarter in Asia Pacific totaled SEK 2,468 M (2,648), with organic growth of –1% (–10). Organic sales growth was very strong in South-East Asia, stable in China, but declined in South Korea and Pacific. Net sales growth from acquisitions was –6%. Operating income excluding items affecting comparability totaled SEK 107 M (–125), which represents an operating margin (EBIT) of 4.3% (–4.7). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 5.8% (1.2). Operating cash flow before non-cash items and interest paid totaled SEK 605 M (237).
Sales for the quarter in Global Technologies totaled SEK 5,885 M (5,734), with organic growth of –7% (24). Organic sales growth was very strong in Citizen ID, good in Identity & Access Solutions and Extended Access, but declined in Secure Issuance and Identification Technology and declined significantly in Physical Access Control. Sales growth in Global Solutions was strong. Net sales growth from acquisitions was 9%. Operating income excluding items affecting comparability totaled SEK 910 M (982), which represents an operating margin (EBIT) of 15.5% (17.1). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 15.2% (12.4). Operating cash flow before non-cash items and interest paid totaled SEK 1,191 M (1,375).
Sales for the quarter in Entrance Systems totaled SEK 12,189 M (11,535), with organic growth of 3% (10). Organic sales growth was very strong in Perimeter Security, growth was strong in Industrial and Pedestrian, but declined in Residential. Net sales growth from acquisitions was 1%. Operating income excluding items affecting comparability totaled SEK 2,126 M (1,906), which represents an operating margin (EBIT) of 17.4% (16.5). Return on capital employed, on an annualized basis and excluding items affecting comparability, amounted to 20.3% (18.8). Operating cash flow before non-cash items and interest paid totaled SEK 2,601 M (2,129).
24 acquisitions were completed during the year. The combined acquisition price for the businesses acquired during the year, including adjustments from prioryear acquisitions, amounted to SEK 54,810 M. The corresponding acquisition price on a cash- and debt- free basis totaled SEK 55,503 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amounted to SEK 42,549 M. Estimated deferred considerations for acquisitions made during the year amounted to SEK 508 M.
On December 7, 2023, it was announced that ASSA ABLOY had acquired Ghost Controls, a US supplier of automated residential gate openers. Sales for 2022 amounted to about SEK 300 M.
On December 5, 2023, it was announced that ASSA ABLOY had acquired Leone Fence, a Canadian manufacturer, distributor and installer of fencing products for commercial and residential applications. Sales for 2022 amounted to about SEK 300 M.
On October 4, 2023, it was announced that ASSA ABLOY had acquired Securitech, a manufacturer of high-security mechanical and electronic door hardware products in the U.S. Sales for 2022 amounted to about SEK 160 M.
In December 2023, ASSA ABLOY was named as a constituent of the Dow Jones Sustainability Index Europe for the third year in a row. 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 sustainability. This is a positive recognition of our ambition level and our progress to date on our sustainability program.
During the year we continued to make good progress towards our sustainability targets, especially water efficiency. Our door factories in Changsha and Chengdu in China have implemented several water efficiency projects, which allow process water to be reused multiple times. This has resulted in an annual water saving of over 19,000 m3 and reduces the ASSA ABLOY Group's water footprint by 2%.
The Sustainability Report for 2023, with results of the Group's progress towards our 2025 program and science-based targets, will be available from 11 March 2024 on the company's website, www.assaabloy.com.
Other operating income for the parent company ASSA ABLOY AB totaled SEK 8,488 M (7,294) for the full year 2023. Operating income for the same period amounted to SEK 2,951 M (1,965). Investments in tangible and intangible assets totaled SEK 8 M (21). Liquidity is good and the equity ratio is 26.9% (40.7). The decrease in equity ratio is largely attributable to financing the acquisition of HHI.
A second dividend payment of SEK 2.40 per share for the financial year 2022 was distributed on 16 November 2023.
The Board of Directors proposes a dividend of SEK 5.40 (4.80) per share for the 2023 financial year, an increase of 13% compared with last year. It is proposed to pay the dividend in two equal installments, the first with record date 26 April 2024 and the second with record date 11 November 2024. If the proposal is adopted by the Annual General Meeting, the first installment is expected to be paid on 2 May 2024 and the second installment on 14 November 2024.
The 2024 Annual General Meeting will be held on 24 April 2024. The Annual Report for 2023 will be available from 11 March 2024 on the company's website, www.assaabloy.com.
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles have been applied as in the last Annual Report. No new or amended standards with material impact on the Group's financial reports have been applied for the first time in 2023, except for the adoption of IAS 29 "Financial Reporting in Hyperinflationary Economies" for the ASSA ABLOY operations in Türkiye.
From 2023, the income statement and non-monetary items in the balance sheet for all Turkish subsidiaries have therefore been adjusted for the impact of hyperinflation. The index used by ASSA ABLOY for the hyperinflation adjustment of the income statements and non-monetary items in the balance sheet is the consumer price index with base period 2005 from the Turkish statistical institute.
The income statements for all Turkish subsidiaries have been recalculated. The net monetary result is recognized in the income statement within financial items. The hyperinflation adjustment related to periods prior to 2023 is recognized in the translation reserve within equity. The hyperinflation impact has been excluded from the statement of cash flows.
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 – described as "alternative performance measures". For definitions of financial performance measures, refer to Page 17 of this Report. Information about how these measures have been calculated is available on the company's website www.assaabloy.com.
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 2022 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.
No transactions that significantly affected the company's position and income have taken place between ASSA ABLOY and related parties.
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 war in Ukraine and the conflict in the Middle East may have a negative business impact on ASSA ABLOY both shortand long-term, but the direct business effects are currently seen as limited.
For a more detailed description of particular risks and risk management, please see the 2022 Annual Report.
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.
It is estimated that completed acquisitions and divestments, on a rolling 12 month basis as at December 31, 2023, will have an effect of 11% on sales in the first quarter of 2024 versus the same period last year, while the effect on the operating margin is estimated to be dilutive in the first quarter of 2024.
On the basis of the currency rates on December 31, 2023, it is estimated that the weighted currency effects on sales in the first quarter of 2024 versus the same period last year will be –3%, while the effect on the operating margin is estimated to be neutral in the first quarter of 2024.
The Company's Auditors have not carried out any review of this Report for the fourth quarter of 2023.
Stockholm, February 7, 2024
Nico Delvaux President and CEO
The Annual Report for 2023 will be published on 11 March 2024.
The Quarterly Report for the first quarter of 2024 will be published on 24 April 2024.
The Annual General Meeting 2024 will be held on 24 April 2024.
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
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: [email protected]
ASSA ABLOY is holding a telephone and web conference at 09.30 on February 7, 2024
which can be followed online at assaabloy.com/investors.
It is possible to submit questions by telephone on: 08–505 100 31, +44 207 107 0613 or +1 631 570 5613
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 February 7, 2024.
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.04/2024
| CONDENSED INCOME STATEMENT | Q4 | Jan-Dec | ||
|---|---|---|---|---|
| SEK M | 2022 | 2023 | 2022 | 2023 |
| Sales | 32,915 | 36,970 | 120,793 | 140,716 |
| Cost of goods sold | -19,716 | -22,061 | -72,862 | -84,212 |
| Gross income | 13,199 | 14,909 | 47,931 | 56,504 |
| -8,059 | -9,307 | -29,425 | -36,054 | |
| Selling, administrative and R&D costs and other operating income & expenses | - | -69 | - | 3,588 |
| Capital gain from divestment of subsidiaries, incl. exit costs Impairment of goodwill and other intangible assets from business combinations |
- | 1 | - | -2,271 |
| Share of earnings in associates | 12 | 5 | 26 | 18 |
| Operating income | 5,152 | 5,539 | 18,532 | 21,785 |
| Finance net | -387 | -843 | -1,011 | -2,531 |
| Income before tax | 4,766 | 4,696 | 17,521 | 19,254 |
| Tax on income | -1,036 | -717 | -4,225 | -5,615 |
| Net income for the period | 3,729 | 3,979 | 13,296 | 13,639 |
| Net income for the period attributable to: | ||||
| Parent company's shareholders | 3,728 | 3,959 | 13,291 | 13,633 |
| Non-controlling interests | 1 | 20 | 5 | 7 |
| Earnings per share | ||||
| Before and after dilution, SEK | 3.36 | 3.56 | 11.97 | 12.27 |
| Before and after dilution and excluding items affecting comparability, SEK | 3.36 | 3.56 | 11.97 | 13.54 |
| Q4 | Jan-Dec | ||||
|---|---|---|---|---|---|
| 2023 | |||||
| 3,729 | 3,979 | 13,296 | 13,639 | ||
| 663 | -4 | 914 | -1 | ||
| 663 | -4 | 914 | -1 | ||
| 17 | -5 | -11 | -63 | ||
| -5 | -148 | -10 | -66 | ||
| - | -23 | - | -23 | ||
| -2,358 | -5,702 | 6,916 | -2,532 | ||
| -2,347 | -5,877 | 6,895 | -2,684 | ||
| -1,683 | -5,881 | 7,809 | -2,685 | ||
| 2,046 | -1,902 | 21,105 | 10,954 | ||
| 10,953 | |||||
| 2 | |||||
| 2022 2,047 -1 |
2023 -1,921 19 |
2022 21,101 4 |
| CONDENSED BALANCE SHEET 31 Dec |
31 Dec | |
|---|---|---|
| SEK M 2022 |
2022 | 2023 |
| ASSETS | ||
| Non-current assets | ||
| 90,897 Intangible assets |
90,897 | 127,704 |
| 10,106 Property, plant and equipment |
10,106 | 11,460 |
| 3,804 Right-of-use assets |
3,804 | 5,296 |
| 676 Investments in associates |
676 | 622 |
| 373 Other financial assets |
373 | 412 |
| 1,313 Deferred tax assets |
1,313 | 1,863 |
| 107,170 Total non-current assets |
107,170 | 147,357 |
| Current assets | ||
| 19,217 Inventories |
19,217 | 18,603 |
| 19,760 Trade receivables |
19,760 | 20,934 |
| 5,000 Other current receivables and investments |
5,000 | 7,991 |
| 3,417 Cash and cash equivalents |
3,417 | 1,466 |
| 47,394 Total current assets |
47,394 | 48,994 |
| 154,564 TOTAL ASSETS |
154,564 | 196,351 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| 86,014 Equity attributable to Parent company's shareholders |
86,014 | 91,629 |
| 12 Non-controlling interests |
12 | 16 |
| 86,026 Total equity |
86,026 | 91,644 |
| Non-current liabilities | ||
| 20,523 Long-term loans |
20,523 | 49,917 |
| 2,624 Non-current lease liabilities |
2,624 | 4,001 |
| 2,785 Deferred tax liabilities |
2,785 | 2,991 |
| 3,005 Other non-current liabilities and provisions |
3,005 | 3,222 |
| 28,936 Total non-current liabilities |
28,936 | 60,131 |
| Current liabilities | ||
| 9,304 Short-term loans |
9,304 | 9,833 |
| 1,284 Current lease liabilities |
1,284 | 1,443 |
| 10,469 Trade payables |
10,469 | 11,320 |
| 18,545 Other current liabilities and provisions |
18,545 | 21,980 |
| 39,602 Total current liabilities |
39,602 | 44,576 |
| 154,564 TOTAL EQUITY AND LIABILITIES |
154,564 | 196,351 |
| CHANGES IN EQUITY | Equity attributable to: | ||
|---|---|---|---|
| Parent | Non | ||
| company's | controlling | Total | |
| SEK M | shareholders | interests | equity |
| Opening balance 1 January 2022 | 69,582 | 9 | 69,592 |
| Net income for the period | 13,291 | 5 | 13,296 |
| Other comprehensive income | 7,810 | -1 | 7,809 |
| Total comprehensive income | 21,101 | 4 | 21,105 |
| Dividend | -4,665 | -1 | -4,666 |
| Stock purchase plans | -4 | - | -4 |
| Total transactions with shareholders | -4,669 | -1 | -4,670 |
| Closing balance 31 December 2022 | 86,014 | 12 | 86,026 |
| Opening balance 1 January 2023 | 86,014 | 12 | 86,026 |
|---|---|---|---|
| Net income for the period | 13,633 | 7 | 13,639 |
| Other comprehensive income | -2,680 | -5 | -2,685 |
| Total comprehensive income | 10,953 | 2 | 10,954 |
| Dividend | -5,332 | - | -5,332 |
| Stock purchase plans | -7 | - | -7 |
| Change in non-controlling interest | 0 | 2 | 2 |
| Total transactions with shareholders | -5,338 | 2 | -5,336 |
| Closing balance 31 December 2023 | 91,629 | 16 | 91,644 |
| CONDENSED STATEMENT OF CASH FLOWS | Q4 | Jan-Dec | |||
|---|---|---|---|---|---|
| SEK M | 2022 | 2023 | 2022 | 2023 | |
| OPERATING ACTIVITIES | |||||
| Operating income | 5,152 | 5,539 | 18,532 | 21,785 | |
| Add back of | |||||
| Depreciation/amortization | 1,146 | 1,590 | 4,088 | 5,174 | |
| Items affecting comparability | - | 183 | - | 400 | |
| Other non-cash items | 29 | 0 | 137 | 123 | |
| Restructuring payments | -171 | -190 | -404 | -613 | |
| Cash flow before interest and tax | 6,155 | 7,122 | 22,353 | 26,868 | |
| -192 | -778 | -799 | -2,122 | ||
| Interest paid and received Tax paid on income |
-1,452 | -1,825 | -4,366 | -7,289 | |
| Cash flow before changes in working capital | 4,511 | 4,519 | 17,188 | 17,458 | |
| Changes in working capital | 1,548 | 1,927 | -2,831 | 3,836 | |
| Cash flow from operating activities | 6,059 | 6,446 | 14,357 | 21,294 | |
| INVESTING ACTIVITIES Net investments in intangible assets and property, plant and equipment |
-735 | -727 | -1,990 | -2,419 | |
| Investments in subsidiaries | -4,850 | -1,553 | -8,583 | -53,566 | |
| Divestments of subsidiaries | 31 | - | 37 | 8,114 | |
| Other investments and disposals | -25 | -26 | -26 | -27 | |
| Cash flow from investing activities | -5,579 | -2,307 | -10,561 | -47,899 | |
| FINANCING ACTIVITIES | -2,333 | -2,666 | -4,666 | -5,332 | |
| Dividends | - | -38 | -55 | -38 | |
| Acquisition of non-controlling interests Amortization of lease liabilities |
-360 | -420 | -1,330 | -1,543 | |
| Net cash effect of changes in borrowings | 2,689 | -1,167 | 1,352 | 31,638 | |
| Cash flow from financing activities | -4 | -4,291 | -4,699 | 24,726 | |
| CASH FLOW FOR THE PERIOD | 477 | -152 | -904 | -1,880 | |
| CASH AND CASH EQUIVALENTS | |||||
| Cash and cash equivalents at beginning of period | 2,978 | 1,688 | 4,325 | 3,417 | |
| Cash flow for the period | 477 | -152 | -904 | -1,880 | |
| Effect of exchange rate differences | -38 | -71 | -5 | -71 | |
| Cash and cash equivalents at end of period | 3,417 | 1,466 | 3,417 | 1,466 |
| THE GROUP IN SUMMARY SEK M |
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Jan-Dec 2022 |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 25,623 | 26,591 | 29,466 | 31,820 | 32,915 | 32,391 | 34,474 | 36,881 | 36,970 | 120,793 | 140,716 |
| Organic growth | 10% | 14% | 13% | 14% | 9% | 8% | 3% | 1% | 0% | 12% | 3% |
| Gross income1 | 10,082 | 10,476 | 11,630 | 12,626 | 13,199 | 13,393 | 14,231 | 15,123 | 15,024 | 47,931 | 57,771 |
| Gross margin 1 | 39.3% | 39.4% | 39.5% | 39.7% | 40.1% | 41.3% | 41.3% | 41.0% | 40.6% | 39.7% | 41.1% |
| EBITDA1 EBITDA margin 1 |
4,982 19.4% |
4,941 18.6% |
5,367 18.2% |
6,014 18.9% |
6,298 19.1% |
6,241 19.3% |
6,658 19.3% |
7,148 19.4% |
7,312 19.8% |
22,620 18.7% |
27,358 19.4% |
| Depreciation, excl attrib. to business combinations | -821 | -788 | -810 | -875 | -961 | -862 | -936 | -995 | -1,304 | -3,433 | -4,098 |
| EBITA1 | 4,161 | 4,153 | 4,557 | 5,139 | 5,338 | 5,379 | 5,722 | 6,152 | 6,008 | 19,187 | 23,261 |
| EBITA margin 1 | 16.2% | 15.6% | 15.5% | 16.2% | 16.2% | 16.6% | 16.6% | 16.7% | 16.2% | 15.9% | 16.5% |
| Amortization attrib. to business combinations | -148 | -151 | -152 | -166 | -185 | -193 | -222 | -376 | -285 | -655 | -1,076 |
| Operating income (EBIT)1 | 4,013 | 4,001 | 4,406 | 4,973 | 5,152 | 5,186 | 5,500 | 5,777 | 5,722 | 18,532 | 22,185 |
| Operating margin (EBIT) 1 Items affecting comparability1 |
15.7% - |
15.0% - |
15.0% - |
15.6% - |
15.7% - |
16.0% -1 225 |
16.0% 1,376 |
15.7% -367 |
15.5% -183 |
15.3% - |
15.8% -400 |
| Operating income (EBIT) | 4,013 | 4,001 | 4,406 | 4,973 | 5,152 | 3,961 | 6,875 | 5,409 | 5,539 | 18,532 | 21,785 |
| Operating margin (EBIT) | 15.7% | 15.0% | 15.0% | 15.6% | 15.7% | 12.2% | 19.9% | 14.7% | 15.0% | 15.3% | 15.5% |
| Net financial items | -194 | -190 | -198 | -237 | -387 | -343 | -445 | -900 | -843 | -1,011 | -2,531 |
| Income before tax | 3,819 | 3,811 | 4,208 | 4,736 | 4,766 | 3,619 | 6,430 | 4,509 | 4,696 | 17,521 | 19,254 |
| Profit margin | 14.9% | 14.3% | 14.3% | 14.9% | 14.5% | 11.2% | 18.7% | 12.2% | 12.7% | 14.5% | 13.7% |
| Tax on income Net income for the period |
-776 3,043 |
-953 2,859 |
-1,052 3,156 |
-1,184 3,552 |
-1,036 3,729 |
-905 2,714 |
-2,854 3,576 |
-1,139 3,371 |
-717 3,979 |
-4,225 13,296 |
-5,615 13,639 |
| Net income attributable to: | |||||||||||
| Parent company's shareholders | 3,042 | 2,858 | 3,153 | 3,551 | 3,728 | 2,713 | 3,574 | 3,386 | 3,959 | 13,291 | 13,633 |
| Non-controlling interests | 1 | 0 | 3 | 1 | 1 | 1 | 1 | -15 | 20 | 5 | 7 |
| OPERATING CASH FLOW | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Jan-Dec | Jan-Dec |
| SEK M | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 |
| Operating income (EBIT) | 4,013 | 4,001 | 4,406 | 4,973 | 5,152 | 3,961 | 6,875 | 5,409 | 5,539 | 18,532 | 21,785 |
| Reversal items affecting comparability Depreciation and amortization |
- 969 |
- 939 |
- 961 |
- 1,041 |
- 1,146 |
1,225 1,055 |
-1,376 1,158 |
367 1,371 |
183 1,590 |
- 4,088 |
400 5,174 |
| Net capital expenditure | -545 | -336 | -410 | -509 | -735 | -516 | -572 | -604 | -727 | -1,990 | -2,419 |
| Change in working capital | -629 | -3,261 | -641 | -477 | 1,548 | -1,111 | 1,267 | 1,754 | 1,927 | -2,831 | 3,836 |
| Interest paid and received | -162 | -133 | -257 | -217 | -192 | -242 | -364 | -738 | -778 | -799 | -2,122 |
| Repayment of lease liabilities | -303 | -312 | -324 | -335 | -360 | -352 | -363 | -409 | -420 | -1,330 | -1,543 |
| Other non-cash items | 41 | 13 | 52 | 44 | 29 | 50 | 45 | 27 | 0 | 137 | 123 |
| Operating cash flow | 3,384 | 912 | 3,787 | 4,520 | 6,588 | 4,069 | 6,671 | 7,177 | 7,315 | 15,808 | 25,232 |
| Cash conversion | 0.89 | 0.24 | 0.90 | 0.95 | 1.38 | 0.84 | 1.32 | 1.47 | 1.50 | 0.90 | 1.28 |
| CHANGE IN NET DEBT | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Jan-Dec | Jan-Dec |
| SEK M | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 |
| Net debt at beginning of period | 25,732 | 27,071 | 27,617 | 32,565 | 30,618 | 31,732 | 29,336 | 69,851 | 68,736 | 27,071 | 31,732 |
| Operating cash flow | -3,384 166 |
-912 68 |
-3,787 84 |
-4,520 81 |
-6,588 171 |
-4,069 109 |
-6,671 146 |
-7,177 167 |
-7,315 190 |
-15,808 404 |
-25,232 613 |
| Restructuring payments Tax paid on income |
960 | 597 | 1,278 | 1,038 | 1,452 | 726 | 2,281 | 2,456 | 1,825 | 4,366 | 7,289 |
| Acquisitions and divestments | 975 | 67 | 3,039 | 826 | 5,080 | 367 | 40,773 | 3,783 | 1,903 | 9,012 | 46,826 |
| Dividend | 2,166 | - | 2,333 | - | 2,333 | - | 2,666 | - | 2,666 | 4,666 | 5,332 |
| Actuarial gain/loss on post-employment benefit oblig. | -216 | 11 | 191 | -538 | -906 | 47 | -92 | 41 | 12 | -1,241 | 8 |
| Change to lease liabilities | 33 | -76 | -51 | -53 | 62 | 254 | 138 | 111 | 125 | -119 | 628 |
| Exchange rate differences, etc. | 639 | 791 | 1,860 | 1,219 | -490 | 171 | 1,274 | -496 | -4,033 | 3,380 | -3,085 |
| Net debt at end of period Net debt/Equity |
27,071 0.39 |
27,617 0.38 |
32,565 0.42 |
30,618 0.35 |
31,732 0.37 |
29,336 0.33 |
69,851 0.75 |
68,736 0.71 |
64,109 0.70 |
31,732 | 64,109 |
| NET DEBT | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| SEK M | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | ||
| Interest-bearing assets | -177 | -177 | -199 | -207 | -224 | -221 | -484 | -495 | -459 | ||
| Cash and cash equivalents | -4,325 | -4,113 | -1,707 | -2,978 | -3,417 | -2,811 | -6,665 | -1,688 | -1,466 | ||
| Derivative financial instruments, net | 86 | 283 | 141 | 231 | 288 | 306 | 15 | 284 | -595 | ||
| Pension provisions | 2,736 | 2,715 | 2,803 | 2,389 | 1,351 | 1,379 | 1,415 | 1,471 | 1,435 | ||
| Lease liabilities | 3,515 | 3,534 | 3,697 | 3,840 | 3,907 | 4,182 | 5,607 | 5,641 | 5,443 | ||
| Interest-bearing liabilities Total |
25,237 27,071 |
25,374 27,617 |
27,829 32,565 |
27,344 30,618 |
29,826 31,732 |
26,500 29,336 |
69,965 69,851 |
63,523 68,736 |
59,751 64,109 |
||
| CAPITAL EMPLOYED AND FINANCING | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| SEK M | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | ||
| Goodwill | 62,502 | 63,600 | 69,536 | 73,540 | 75,873 | 75,075 | 117,142 | 119,006 | 92,873 | ||
| Other intangible assets | 13,834 | 13,877 | 14,476 | 14,774 | 15,024 | 15,539 | 15,918 | 15,333 | 34,831 | ||
| Property, plant and equipment | 8,753 | 8,934 | 9,538 | 10,079 | 10,106 | 10,178 | 11,885 | 12,111 | 11,460 | ||
| Right-of-use assets | 3,436 | 3,450 | 3,601 | 3,735 | 3,804 | 4,075 | 5,476 | 5,501 | 5,296 | ||
| Other capital employed | 8,796 | 11,932 | 14,327 | 15,257 | 13,244 | 14,206 | 14,277 | 13,958 | 12,060 | ||
| Restructuring reserve | -658 | -600 | -537 | -469 | -294 | -1,229 | -1,140 | -941 | -767 | ||
| Capital employed Net debt |
96,663 27,071 |
101,193 27,617 |
110,941 32,565 |
116,916 30,618 |
117,758 31,732 |
117,844 29,336 |
163,558 69,851 |
164,969 68,736 |
155,753 64,109 |
||
| Non-controlling interests | 9 | 9 | 11 | 13 | 12 | 12 | 10 | 36 | 16 | ||
| Equity attributable to Parent company´s shareholders | 69,582 | 73,568 | 78,365 | 86,285 | 86,014 | 88,496 | 93,696 | 96,197 | 91,629 | ||
| OTHER KEY RATIOS ETC | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | |||
| Earnings per share, SEK | 2,74 | 2,57 | 2,84 | 3,20 | 3,36 | 2,44 | 3,22 | 3,05 | 3,56 | ||
| Earnings per share, excl IAC, SEK Shareholders' equity per share, SEK |
2,74 62,64 |
2,57 66,23 |
2,84 70,55 |
3,20 77,68 |
3,36 77,44 |
3,32 79,67 |
3,36 84,35 |
3,31 86,60 |
3,56 82,49 |
||
| Return on capital employed | 15,2% | 15,7% | 16,0% | 16,8% | 16,9% | 17,4% | 17,2% | 16,3% | 15,6% | ||
| Return on equity | 17,0% | 16,8% | 16,1% | 16,4% | 17,1% | 16,2% | 15,8% | 14,7% | 15,3% | ||
| Net debt/EBITDA | 1,5 | 1,5 | 1,7 | 1,4 | 1,4 | 1,2 | 2,8 | 2,6 | 2,3 | ||
| Average number of employees | 50,934 | 50,984 | 51,545 | 51,937 | 52,463 | 52,960 | 53,824 | 56,289 | 56,845 | ||
| Average adjusted capital employed | 93,199 | 95,766 | 99,074 | 103,663 | 109,372 | 113,480 | 120,917 | 132,788 | 142,611 | ||
| Average number of shares, thousands Items affecting comparability, net of tax |
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 - |
- | - | - | - | -978 | -156 | -285 | 10 |
1) Excluding items affecting comparability (IAC). Please see the section 'Items affecting comparability' on page 4 of this report for further details about the financial effects.
| Q4 and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
| Sales, external | 6,079 | 6,197 | 7,391 | 10,486 | 2,246 | 2,273 | 5,687 | 5,852 | 11,512 | 12,160 | - | - | 32,915 | 36,970 |
| Sales, internal | 152 | 141 | 37 | 22 | 402 | 194 | 47 | 33 | 23 | 28 | -660 | -419 | - | - |
| Sales | 6,231 | 6,339 | 7,427 10,508 | 2,648 | 2,468 | 5,734 | 5,885 | 11,535 12,189 | -660 | -419 | 32,915 | 36,970 | ||
| Organic growth | 2% | -2% | 11% | 5% | -10% | -1% | 24% | -7% | 10% | 3% | - | - | 9% | 0% |
| Acquisitions and divestments | 11% | 2% | 1% | 38% | 10% | -6% | 4% | 9% | 2% | 1% | - | - | 5% | 11% |
| Exchange-rate effects | 7% | 2% | 23% | -2% | 9% | 0% | 17% | 1% | 14% | 2% | - | - | 14% | 1% |
| Share of earnings in associates | - | - | - | - | 9 | -6 | 3 | 11 | 0 | - | - | - | 12 | 5 |
| EBIT, excl items affecting | ||||||||||||||
| comparability | 933 | 915 | 1,583 | 1,854 | -125 | 107 | 982 | 910 | 1,906 | 2,126 | -127 | -190 | 5,152 | 5,722 |
| EBIT margin, excl items affecting | 15.0% | 14.4% | 21.3% | 17.6% | -4.7% | 4.3% | 17.1% | 15.5% | 16.5% | 17.4% | - | - | 15.7% | 15.5% |
| comparability | ||||||||||||||
| Items affecting comparability1 | - | -22 | - | -124 | - | -38 | - | 1 | - | 0 | - | - | - | -183 |
| Operating income (EBIT) | 933 | 893 | 1,583 | 1,729 | -125 | 70 | 982 | 911 | 1,906 | 2,126 | -127 | -190 | 5,152 | 5,539 |
| Operating margin (EBIT) | 15.0% | 14.1% | 21.3% | 16.5% | -4.7% | 2.8% | 17.1% | 15.5% | 16.5% | 17.4% | - | - | 15.7% | 15.0% |
| OPERATING CASH FLOW | ||||||||||||||
| SEK M | ||||||||||||||
| Operating income (EBIT) | 933 | 893 | 1,583 | 1,729 | -125 | 70 | 982 | 911 | 1,906 | 2,126 | -127 | -190 | 5,152 | 5,539 |
| Items affecting comparability1 | - | 22 | - | 124 | - | 38 | - | -1 | - | 0 | - | - | - | 183 |
| Depreciation and amortization | 235 | 352 | 198 | 328 | 105 | 124 | 279 | 271 | 318 | 503 | 10 | 12 | 1,146 | 1,590 |
| Net capital expenditure | -129 | -143 | -125 | -200 | -188 | -46 | -122 | -151 | -158 | -182 | -13 | -5 | -735 | -727 |
| Amortization of lease liabilities | -73 | -72 | -46 | -83 | -32 | -35 | -42 | -48 | -162 | -177 | -4 | -5 | -360 | -420 |
| Change in working capital | 360 | 783 | 300 | 221 | 477 | 455 | 278 | 209 | 225 | 331 | -91 | -73 | 1,548 | 1,927 |
| Operating cash flow by division | 1,326 | 1,836 | 1,910 | 2,120 | 237 | 605 | 1,375 | 1,191 | 2,129 | 2,601 | -227 | -261 | 6,752 | 8,092 |
| Other non-cash items | 29 | 0 | 29 | 0 | ||||||||||
| Interest paid and received | -192 | -778 | -192 | -778 | ||||||||||
| Operating cash flow | 6,588 | 7,315 |
| Jan-Dec and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
| Sales, external | 22,286 | 24,214 | 28,191 | 37,867 | 8,302 | 9,133 | 19,186 | 22,930 | 42,827 | 46,570 | - | - | 120,793 | 140,716 |
| Sales, internal | 572 | 617 | 152 | 141 | 1,522 | 1,151 | 158 | 169 | 100 | 95 | -2,505 | -2,173 | - | - |
| Sales | 22,858 24,831 | 28,344 38,009 | 9,824 10,284 | 19,344 23,099 | 42,928 46,665 | -2,505 | -2,173 | 120,793 140,716 | ||||||
| Organic growth | 5% | -2% | 17% | 6% | -5% | -2% | 15% | 9% | 17% | 1% | - | - | 12% | 3% |
| Acquisitions and divestments | 1% | 6% | 1% | 22% | 7% | 5% | 2% | 5% | 2% | 2% | - | - | 2% | 8% |
| Exchange-rate effects | 5% | 5% | 20% | 6% | 11% | 2% | 15% | 5% | 12% | 6% | - | - | 13% | 5% |
| Share of earnings in associates | - | - | - | - | 22 | 7 | 3 | 11 | 1 | - | - | - | 26 | 18 |
| EBIT, excl items affecting | ||||||||||||||
| comparability EBIT margin, excl items affecting |
3,335 | 3,388 | 5,899 | 7,186 | 119 | 662 | 3,065 | 3,996 | 6,847 | 7,807 | -732 | -854 | 18,532 | 22,185 |
| comparability | 14.6% | 13.6% | 20.8% | 18.9% | 1.2% | 6.4% | 15.8% | 17.3% | 15.9% | 16.7% | - | - | 15.3% | 15.8% |
| Items affecting comparability1 | - | -551 | - | 2,908 | - | -27 | - | -2,492 | - | -133 | - | -104 | - | -400 |
| Operating income (EBIT) | 3,335 | 2,837 | 5,899 10,094 | 119 | 635 | 3,065 | 1,504 | 6,847 | 7,673 | -732 | -958 | 18,532 | 21,785 | |
| Operating margin (EBIT) | 14.6% | 11.4% | 20.8% | 26.6% | 1.2% | 6.2% | 15.8% | 6.5% | 15.9% | 16.4% | - | - | 15.3% | 15.5% |
| OPERATING CASH FLOW SEK M |
||||||||||||||
| Operating income (EBIT) | 3,335 | 2,837 | 5,899 | 10,094 | 119 | 635 | 3,065 | 1,504 | 6,847 | 7,673 | -732 | -958 | 18,532 | 21,785 |
| Items affecting comparability1 | - | 551 | - | -2,908 | - | 27 | - | 2,492 | - | 133 | - | 104 | - | 400 |
| Depreciation and amortization | 865 | 1,055 | 634 | 1,154 | 363 | 424 | 1,012 | 1,013 | 1,176 | 1,484 | 38 | 44 | 4,088 | 5,174 |
| Net capital expenditure | -443 | -627 | -436 | -631 | -289 | -202 | -301 | -378 | -495 | -576 | -26 | -6 | -1,990 | -2,419 |
| Amortization of lease liabilities | -266 | -276 | -178 | -255 | -111 | -129 | -158 | -188 | -599 | -675 | -18 | -21 | -1,330 | -1,543 |
| Change in working capital | -707 | 643 | -400 | 726 | 207 | 457 | -642 | -298 | -1,494 | 2,352 | 205 | -44 | -2,831 | 3,836 |
| Operating cash flow by division | 2,785 | 4,183 | 5,520 | 8,181 | 288 | 1,213 | 2,974 | 4,145 | 5,436 10,391 | -534 | -881 | 16,470 | 27,232 | |
| Other non-cash items | 137 | 123 | 137 | 123 | ||||||||||
| Interest paid and received | -799 | -2,122 | -799 | -2,122 | ||||||||||
| Operating cash flow | 15,808 | 25,232 | ||||||||||||
| CAPITAL EMPLOYED | ||||||||||||||
| SEK M | ||||||||||||||
| Goodwill | 12,957 | 13,232 | 15,416 | 32,382 | 6,058 | 5,379 | 19,041 | 18,989 | 22,401 | 22,891 | - | - | 75,873 | 92,873 |
| Other intangible assets | 1,223 | 1,366 | 1,375 | 21,652 | 1,637 | 1,937 | 3,691 | 2,968 | 7,056 | 6,876 | 42 | 32 | 15,024 | 34,831 |
| Property, plant and equipment | 2,745 | 3,166 | 2,079 | 3,037 | 1,591 | 1,398 | 1,421 | 1,556 | 2,215 | 2,260 | 55 | 43 | 10,106 | 11,460 |
| Right-of-use assets | 914 | 976 | 482 | 1,598 | 234 | 295 | 540 | 553 | 1,603 | 1,858 | 31 | 17 | 3,804 | 5,296 |
| Other capital employed | 4,034 | 2,120 | 1,536 | 2,875 | 1,692 | 1,324 | 1,604 | 1,827 | 5,141 | 3,830 | -764 | 84 | 13,244 | 12,060 |
| Adjusted capital employed | 21,874 20,860 | 20,889 61,544 | 11,211 10,332 | 26,297 25,891 | 38,418 37,715 | -636 | 177 | 118,052 156,520 | ||||||
| Restructuring reserve | -97 | -298 | 12 | -150 | -49 | -43 | -60 | -89 | -76 | -182 | -23 | -5 | -294 | -767 |
| Capital employed | 21,777 20,562 | 20,900 61,395 | 11,161 10,289 | 26,237 25,802 | 38,342 37,533 | -659 | 172 | 117,758 155,753 | ||||||
| Return on capital employed | 16.8% | 14.8% | 32.1% | 16.3% | 1.2% | 5.8% | 12.4% | 15.2% | 18.8% | 20.3% | - | - | 16.9% | 15.6% |
| Average adjusted capital employed | 19,861 | 22,872 | 18,369 | 44,025 | 10,167 | 11,396 | 24,745 | 26,295 | 36,447 | 38,502 | - | - | 109,372 | 142,611 |
| Average number of employees | 11,943 | 12,188 | 9,435 | 13,358 | 7,914 | 7,099 | 7,278 | 7,895 | 15,621 | 16,028 | 271 | 276 | 52,463 | 56,845 |
1 Please see the section 'Items affecting comparability' on page 4 of this report for further details about the financial effects.
| Sales by continent Q4 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
| Europe | 5,333 | 5,481 | 15 | 18 | 118 | 151 | 1,509 | 1,946 | 4,628 | 4,938 | -209 | -219 | 11,394 | 12,315 |
| North America | 157 | 154 | 6,690 | 9,461 | 646 | 458 | 2,963 | 2,439 | 6,176 | 6,377 | -324 | -101 | 16,309 | 18,788 |
| Central- and South America | 24 | 27 | 685 | 935 | 13 | 12 | 175 | 256 | 26 | 53 | -10 | -10 | 913 | 1,273 |
| Africa | 278 | 233 | 2 | 2 | 2 | 2 | 87 | 208 | 10 | 12 | -16 | -9 | 363 | 448 |
| Asia | 399 | 411 | 34 | 88 | 1,114 | 1,139 | 727 | 710 | 376 | 449 | -65 | -48 | 2,585 | 2,750 |
| Oceania | 38 | 33 | 2 | 4 | 756 | 706 | 274 | 325 | 319 | 360 | -37 | -32 | 1,351 | 1,396 |
| Total | 6,231 | 6,339 | 7,427 10,508 | 2,648 | 2,468 | 5,735 | 5,885 | 11,535 | 12,189 | -661 | -419 | 32,915 | 36,970 | |
| Sales by continent Jan-Dec | EMEIA | Americas | Global | Entrance | ||||||||||
| Asia Pacific | Technologies | Systems | Other | Total | ||||||||||
| SEK M | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
| Europe | 19,433 | 21,211 | 101 | 85 | 630 | 568 | 5,227 | 6,243 | 16,706 | 18,395 | -907 | -841 | 41,191 | 45,661 |
| North America | 566 | 691 | 25,605 | 34,201 | 2,202 | 2,436 | 9,378 | 11,089 | 23,735 | 25,136 | -1,140 | -871 | 60,346 | 72,682 |
| Central- and South America | 97 | 99 | 2,491 | 3,448 | 49 | 48 | 714 | 900 | 90 | 159 | -33 | -37 | 3,406 | 4,617 |
| Africa | 1,100 | 973 | 14 | 10 | 9 | 14 | 417 | 662 | 43 | 68 | -47 | -36 | 1,537 | 1,691 |
| Asia | 1,515 | 1,689 | 124 | 249 | 4,089 | 4,284 | 2,612 | 2,894 | 1,220 | 1,509 | -231 | -226 | 9,330 | 10,399 |
| Oceania | 147 | 168 | 9 | 17 | 2,845 | 2,934 | 996 | 1,310 | 1,133 | 1,399 | -148 | -162 | 4,983 | 5,666 |
| Sales by product group Q4 | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
| Mechanical locks, lock systems and fittings | 2,846 | 2,865 | 2,806 | 4,437 | 1,244 | 1,325 | 102 | 107 | 2 | 2 | -175 | -178 | 6,825 | 8,559 |
| Electromechanical and electronic locks | 2,022 | 2,135 | 2,020 | 2,472 | 752 | 487 | 5,628 | 5,733 | 295 | 349 | -423 | -169 | 10,293 | 11,007 |
| Security doors and hardware | 1,215 | 1,227 | 2,580 | 3,581 | 618 | 598 | 4 | 46 | 849 | 969 | -36 | -40 | 5,231 | 6,381 |
| Entrance automation | 148 | 111 | 21 | 18 | 34 | 57 | - | - | 10,389 | 10,868 | -26 | -31 | 10,566 | 11,023 |
| Total | 6,231 | 6,339 | 7,427 10,508 | 2,648 | 2,468 | 5,734 | 5,885 | 11,535 | 12,189 | -660 | -419 | 32,915 | 36,970 | |
| Sales by product group Jan-Dec | Global | Entrance | ||||||||||||
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
| Mechanical locks, lock systems and fittings | 10,934 | 11,653 | 10,984 | 15,691 | 5,005 | 5,286 | 372 | 416 | 8 | 9 | -789 | -780 | 26,515 | 32,275 |
| Electromechanical and electronic locks | 7,098 | 8,002 | 7,432 | 9,281 | 2,496 | 2,193 | 18,958 | 22,510 | 1,179 | 1,304 | -1,453 | -1,128 | 35,709 | 42,161 |
| Security doors and hardware | 4,284 | 4,722 | 9,852 | 12,953 | 2,147 | 2,606 | 15 | 173 | 3,850 | 3,984 | -145 | -150 | 20,002 | 24,288 |
| Entrance automation | 542 | 454 | 76 | 84 | 176 | 200 | - | - | 37,891 | 41,369 | -118 | -114 | 38,567 | 41,992 |
| whereof | |||||
|---|---|---|---|---|---|
| Q4 | Jan-Dec | HHI | |||
| Amounts recognized in the group, SEK M | 2022 | 2023 | 2022 | 2023 | 2023 |
| Purchase prices | |||||
| Cash paid for acquisitions during the year | 5,225 | 1 587 | 8,945 | 54,292 | 47,742 |
| Holdbacks and deferred considerations for acquisitions during the year | 502 | 181 | 864 | 508 | 43 |
| Adjustment of purchase prices for acquisitions in prior years | 0 | 1 | 2 | 10 | - |
| Total | 5,727 | 1,769 | 9,812 54,810 | 47,785 | |
| Acquired assets and liabilities at fair value | |||||
| Intangible assets | 683 | 22,491 | 803 | 24,422 | 22,401 |
| Property, plant and equipment and right-of-use assets | 167 | -115 | 477 | 2,647 | 2,054 |
| Other non-current assets | 60 | 253 | 102 | 494 | 464 |
| Inventories | 468 | 69 | 1,312 | 4,098 | 3,377 |
| Current receivables and investments | 415 | -157 | 948 | 2,305 | 1,599 |
| Cash and cash equivalents | 422 | 148 | 533 | 1,175 | 584 |
| Non-current liabilities | -184 | -526 | -256 | -2,445 | -1,807 |
| Current liabilities | -695 | -178 | -1,297 | -3,350 | -2,676 |
| Total | 1,336 | 21,984 | 2,621 29,346 | 25,997 | |
| Goodwill | 4,391 -20,215 | 7,190 25,464 | 21,789 | ||
| Change in cash and cash equivalents due to acquisitions | |||||
| Cash paid for acquisitions during the year | 5,225 | 1,587 | 8,945 | 54,292 | 47,742 |
| Cash and cash equivalents in acquired subsidiaries | -422 | -148 | -533 | -1,175 | -584 |
| Paid considerations for acquisitions in prior years | 46 | 114 | 171 | 449 | - |
| Total | 4,850 | 1,553 | 8,583 53,566 | 47,158 |
The acquisition analyses for acquisitions made during the year are preliminary and will be concluded within one year of the acquisition date.
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table. During the year, some of the analyzes of acquisitions closed during 2022 have been completed, whereby the resulting goodwill in these acquisitions has decreased.
| Number of | Approx. | Month of | |||
|---|---|---|---|---|---|
| Acquisition | Division | Country | employees | sales in 2022 | consolidation |
| GuardRFID | Global technologies | Canada | <50 | 60 | 2023-02 |
| Crewsight | Global technologies | USA | <50 | <50 | 2023-02 |
| Connexient | Global technologies | USA | <50 | <50 | 2023-03 |
| Alexander & Wilks | EMEIA | United Kingdom | <50 | <50 | 2023-04 |
| Mottura Serrature | EMEIA | Italy | 120 | 300 | 2023-05 |
| Southwest Entrances | Entrance systems | USA | <50 | 70 | 2023-05 |
| Iberon | Global technologies | USA | <50 | <50 | 2023-06 |
| Hardware and Home Improvement (HHI) | Americas | USA | 7 000 | 16 600 | 2023-06 |
| Kinetron | EMEIA | Netherlands | <50 | <50 | 2023-07 |
| Sunray Engineering | EMEIA | United Kingdom | 70 | 150 | 2023-07 |
| Cleveland Door Controls | Entrance systems | USA | <50 | <50 | 2023-07 |
| Atlas Security | Entrance systems | USA | <50 | <50 | 2023-09 |
| Access Technology | Global technologies | Denmark | <50 | <50 | 2023-09 |
| Enkoa | Global technologies | Spain | <50 | <50 | 2023-09 |
| Lawrence Hardware and Gallery Specialty | Americas | Canada | 50 | 200 | 2023-09 |
| Evolis | Global technologies | France | 380 | 1 200 | 2023-09 |
| Inovadoor | Entrance systems | Brazil | 100 | 100 | 2023-09 |
| Forte | Americas | Peru | 340 | 200 | 2023-09 |
| Securitech Group Inc. | Americas | USA | 50 | 160 | 2023-10 |
| Char | Global technologies | Spain | <50 | <50 | 2023-10 |
| DS Security | Global technologies | UK | <50 | 60 | 2023-11 |
| Ghost control | Entrance systems | USA | <50 | 300 | 2023-12 |
| Leone Fence | Entrance systems | Canada | 60 | 300 | 2023-12 |
| ZeroSSL | Global technologies | Austria | <50 | <50 | 2023-12 |
| 31 December 2023 | Financial instruments at fair value |
||||
|---|---|---|---|---|---|
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 | Level 3 |
| Financial assets | |||||
| Financial assets at amortized cost | 22,934 | 22,934 | |||
| Financial assets at fair value through profit and loss | 115 | 115 | |||
| Derivatives - hedge accounting | 633 | 633 | 633 | ||
| Derivatives - held for trading | 293 | 293 | 293 | ||
| Total financial assets | 23,975 | 23,975 | - | 926 | - |
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 71,071 | 70,310 | |||
| Financial liabilities at fair value through profit and loss | 1,045 | 1,045 | 1,045 | ||
| Lease liabilities | 5,443 | 5,443 | |||
| Derivatives - hedge accounting | 161 | 161 | 161 | ||
| Derivatives - held for trading | 170 | 170 | 170 | ||
| Total financial liabilities | 77,890 | 77,129 | - | 331 | 1,045 |
| 31 December 2022 | Financial instruments at fair value |
||||
| Carrying | Fair | ||||
| SEK M | amount | value | Level 1 | Level 2 | Level 3 |
| Financial assets | |||||
| Financial assets at amortized cost | 23,458 | 23,458 | |||
| Financial assets at fair value through profit and loss | 93 | 93 | |||
| Derivatives - hedge accounting | 5 | 5 | 5 | ||
| Derivative instruments - hedge accounting | 135 | 135 | 135 |
Financial liabilities at fair value through profit and loss pertains to deferred Deferred considerations are initially measured on the day of acquisition based considerations, i.e. additional payments for acquired companies. The size of a on management's best estimate regarding future outcomes and belong to deferred consideration is usually linked to the earnings and sales performance level 3 in the hierarchy. in an acquired company during a specific period of time.
| EXTRACT FROM INCOME STATEMENT Year |
Jan-Dec | ||
|---|---|---|---|
| SEK M 2022 |
2022 | 2023 | |
| 1,965 Operating income |
1,965 | 2,951 | |
| 3,411 Income before appropriations and tax |
3,411 | 2,809 | |
| 3,292 Net income for the period |
3,292 | 3,365 | |
| EXTRACT FROM BALANCE SHEET | 31 Dec 31 Dec |
|
|---|---|---|
| SEK M | 2022 2022 |
2023 |
| Non-current assets | 47,860 47,860 |
52,722 |
| Current assets | 18,809 18,809 |
40,730 |
| Total assets | 66,669 66,669 |
93,452 |
| Equity | 27,104 27,104 |
25,130 |
| Untaxed reserves | 1,265 1,265 |
1,021 |
| Non-current liabilities | 15,119 15,119 |
35,550 |
| Current liabilities | 23,182 23,182 |
31,751 |
| Total equity and liabilities | 66,669 66,669 |
93,452 |
Change in sales for comparable units after adjustments for Average capital employed excluding restructuring reserves acquisitions, divestments and exchange rate effects. for the last twelve months.
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 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, number of outstanding shares after any potential dilution. revaluation of inventory in business combinations and goodwill impairment.
Cash Flow from operating activities excluding restructuring Comparability, for the last twelve months as a percentage of payments and tax paid on income minus net capital expenditure average adjusted capital employed. and repayment of lease liabilities.
Operating cash flow in relation to income before tax excluding for the last twelve months as a percentage of average equity items affecting comparability. attributable to parent company's shareholders for the
Investments in, less disposals of, intangible assets and Earnings per share before and after dilution
Depreciation, amortization and impairment of intangible assets, are expected to result in significant dilution in the future. property, plant and equipment and right-of-use assets.
Income before tax as a percentage of sales. Shareholders' equity as a percentage of total assets.
Items affecting comparability Shareholders' equity per share
Operating cash flow Operating Income (EBIT), excluding Items Affecting
Cash conversion Net income attributable to parent company's shareholders same period.
property, plant and equipment. Net income attributable to parent company's shareholders divided by weighted average number of outstanding shares. Depreciation and amortization None of the Group's outstanding long-term incentive programs
Total assets less interest-bearing assets and non-interest- Net income attributable to parent company's shareholders bearing liabilities including deferred tax liability. excluding items affecting comparability, net of tax, divided by 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.
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 2022 appear on the company's website.
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