Quarterly Report • Oct 27, 2021
Quarterly Report
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| Third quarter | January-September | |||||
|---|---|---|---|---|---|---|
| 2020 | 2021 | Δ | 2020 | 2021 | Δ | |
| Sales, SEK M | 22,225 | 23,930 | 8% | 64,351 | 69,384 | 8% |
| Of which: | ||||||
| Organic growth | –1,043 | 1,576 | 7% | –6,001 | 6,661 | 11% |
| Acquisitions and divestments | 816 | 490 | 2% | 2,118 | 2,211 | 4% |
| Exchange-rate effects | –1,581 | –361 | –1% | –849 | –3,839 | –7% |
| Operating income (EBIT)1 , SEK M |
3,593 | 3,392 | –6% | 8,441 | 10,168 | 20% |
| Operating margin (EBITA)1 , % |
16.8% | 14.8% | 13.8% | 15.3% | ||
| Operating margin (EBIT)1 , % |
16.2% | 14.2% | 13.1% | 14.7% | ||
| Income before tax1 , SEK M |
3,417 | 3,233 | –5% | 7,828 | 9,719 | 24% |
| Net income1 , SEK M |
2,528 | 2,392 | –5% | 5,792 | 7,858 | 36% |
| Operating cash flow, SEK M | 4,407 | 3,619 | –18% | 9,031 | 9,881 | 9% |
| Earnings per share1 , SEK |
2.28 | 2.15 | –5% | 5.21 | 7.07 | 36% |
1 Excluding non-cash operating income in Q3 2020 from revaluation at fair value of 39% ownership in agta record, totaling SEK 1,910 M. The operating income had no tax impact.
Organic growth
7%
Earnings per share1
–5%
The reopening of society continued in most of our core markets during the quarter. This contributed to a strong organic sales growth of 7% for the Group in the third quarter. Organic sales growth of 7% in EMEIA and 14% in Americas reflected increased mobility, improved commercial performance and continued strong residential demand in our core markets despite high comparatives versus last year. Asia Pacific's organic sales declined by 7%, due to new lockdowns in core markets and a slow-down in China. Organic growth in Global Technologies was 7%, driven by higher demand for our office-access solutions and strong growth in non-travelrelated verticals. However, component shortages affected the growth negatively and our travel-related business is recovering only slowly. Entrance Systems continued to show very strong organic growth of 10%. Sales for all divisions were affected positively by price adjustments to offset the higher material costs.
Operating income, excluding one-time items in both 2020 and 2021, increased by 7% and the adjusted operating margin was 15.0%, the same level as last year on a comparable basis. Thanks to several price adjustments and operational improvements we achieved an operating leverage of 22%, despite the significantly higher material costs, higher logistical costs, and operational challenges linked to component shortages. Operating cash flow was strong and reached SEK 3,619 M with a conversion rate of 112%.
As society normalizes, we are seeing increased activity levels in the upgrading and renovation of buildings and premises. There is also a strong positive trend in environmentally adapted construction, another area where we lead the industry and where we are continuing to invest in product innovation. Underlying megatrends including digitalization, urbanization and demand for convenient security solutions in the global markets remain solid, and we are seeing a further acceleration towards electromechanical solutions (where sales in fixed currencies grew by 8% during the third quarter).
Acquisitions remain an important pillar of our growth. During the quarter we signed five acquisitions with combined annual sales of about SEK 15 billion. These include, subject to regulatory approval, the Home and Hardware Improvement (HHI) division of Spectrum Brands, which is the largest acquisition in our history. HHI is a great addition to the Group and constitutes an important strategic step in developing our residential business in North America. We look forward to welcoming the HHI employees into the Group and to working together to develop new and exciting residential products that will accelerate our underlying growth.
Looking ahead, we expect the growth in the European and American markets to normalize, while the recovery in the travel-related verticals and in Asia will be slower. We also assume material shortages, logistic challenges and cost inflation to continue to impact our markets during the rest of the year.
Thank you for your continued support and trust in ASSA ABLOY.
Stockholm, 27 October 2021
Nico Delvaux President and CEO
Sales by quarter and last 12 months
The Group's sales increased by 8% to SEK 23,930 M (22,225). Organic growth amounted to 7% (–5). Growth from acquisitions and divestments was 2% (4), of which 4% (4) were acquisitions and –1% (0) divestments. Exchange-rates affected sales by –1% (–7).
The Group's operating income (EBIT) 2 amounted to SEK 3,392 M (3,593), a decrease of 6%. The corresponding operating margin was 14.2% (16.2). Excluding an operating loss of SEK 196 M for the CERTEGO divestment in the quarter and a one-time operating gain of SEK 252 M in 2020, the operating margin2 was 15.0% (15.0). Exchange-rates had an EBIT impact of SEK –120 M (–264). Operating income before amortizations from acquisitions (EBITA) 2 amounted to SEK 3,539 M (3,734). The corresponding EBITA margin was 14.8% (16.8).
Net financial items amounted to SEK –159 M (–176). The Group's income before tax2 was SEK 3,233 M (3,417), a decrease of 5% compared with last year. Exchange-rates had an impact of SEK –109 M (–262) on income before tax2 . The corresponding profit margin was 13.5% (15.4).
The estimated effective income tax rate, on an annual basis and excluding items affecting comparability, was 26% (26). Earnings per share2 amounted to SEK 2.15 (2.28), a decrease of 5% compared with last year. Operating cash flow amounted to SEK 3,619 M (4,407), a decrease of 18% compared with last year. The cash conversion was strong and amounted to 1.12 (1.29). The net debt / equity ratio at the end of the quarter was 0.38 (0.56).
The Group's sales for the first nine months of 2021 totaled SEK 69,384 M (64,351), representing an increase of 8%. Organic growth was 11% (–9). Growth from acquisitions and divestments was 4% (3), of which 5% (3) were acquisitions and –1% (0) were divestments. Exchange-rate effects affected sales by –7% (–1).
The Group's operating income (EBIT) 2 amounted to SEK 10,168 M (8,441), an increase of 20% compared with last year. The corresponding operating margin was 14.7% (13.1). Excluding an operating loss of SEK 196 M for CERTEGO divestment in 2021 and a one-time operating gain of SEK 252 M in 2020, the operating margin2 was 14.9% (13.5). Operating income before amortizations from acquisitions (EBITA) 2 amounted to SEK 10,621 M (8,856). The corresponding EBITA margin was 15.3% (13.8).
Earnings per share2 amounted to SEK 7.07 (5.21), an increase of 36% compared with last year. Operating cash flow totaled SEK 9,881 M (9,031), an increase of 9% compared with last year.
Stephanie Ordan has been appointed Executive Vice President and Head of the Global Solutions business unit in the Global Technologies division from September 13, 2021. Stephanie has held a senior position in Opening Solutions
2 Excluding non-cash operating income in Q3 2020 from revaluation at fair value of 39% ownership in agta record (a shareholding in associates), totaling SEK 1,910 M. The operating income had no tax impact.
EMEIA division since joining ASSA ABLOY in 2018. She has previous experience from various senior positions in both the USA and Europe, and she holds a Masters degree in Business administration from the University of Madrid in Spain.
Maria Romberg Ewerth, Executive Vice President and Chief Human Resources manager, has decided to leave ASSA ABLOY for a new position outside the Group. Recruitment of a successor has started.
Payments related to all restructuring programs amounted to SEK 130 M (155) during the quarter. The restructuring programs proceeded according to plan and led to a personnel reduction of 409 Full-Time Equivalents for the quarter and 838 for the year to date. At the end of the quarter provisions of SEK 848 M remained in the balance sheet for carrying out the programs.
Sales for the quarter in EMEIA totaled SEK 5,044 M (4,824), with organic growth of 7% (–2). Sales growth was very strong in Finland, France and Middle East/ Africa/India, strong in Benelux, DACH, Eastern Europe and the UK, and stable in Scandinavia and South Europe. Net sales growth from divestments and internal segment transfers was –1%. Operating income totaled SEK 572 M (765), which represents an operating margin (EBIT) of 11.3% (15.9). Excluding the operating loss of SEK 196 M for the CERTEGO divestment, the operating margin in the current quarter was 15.2%. Return on capital employed, on an annualized basis, amounted to 15.2% (12.7). Operating cash flow before non-cash items and interest paid totaled SEK 560 M (854).
Sales for the quarter in Americas totaled SEK 5,400 M (4,779), with organic growth of 14% (–5). Sales growth was very strong in Access & High Security, Architectural Hardware, Electromechanical Solutions, Latin America, Security Doors, US Residential and US Smart Residential. In Canada sales growth was strong. Sales growth from acquisitions was 2%. Operating income totaled SEK 1,112 M (966), which represents an operating margin (EBIT) of 20.6% (20.2). Return on capital employed, on an annualized basis, amounted to 29.2% (23.7). Operating cash flow before non-cash items and interest paid totaled SEK 997 M (1,435).
Sales for the quarter in Asia Pacific totaled SEK 2,271 M (2,479), with organic growth of –7% (–8). Sales growth was stable in South Korea, declined in Pacific and declined significantly in South East Asia and China. Net sales growth from acquisitions and internal segment transfers was –2%. Operating income totaled SEK 132 M (183), which represents an operating margin (EBIT) of 5.8% (7.4). Return on capital employed, on an annualized basis, amounted to 7.2% (4.6). Operating cash flow before non-cash items and interest paid totaled SEK 122 M (441).
Sales for the quarter in Global Technologies totaled SEK 3,705 M (3,428), with organic growth of 7% (–17). Sales growth was very strong in Identification Technology and Extended Access, strong in Physical Access Control and Secure Issuance, but declined in Identity & Access Solutions and Citizen ID. Sales growth in Global Solutions was strong. Net sales growth from acquisitions and internal segment transfers was 3%. Operating income totaled SEK 585 M (550), which represents an operating margin (EBIT) of 15.8% (16.0). Return on capital employed, on an annualized basis, amounted to 10.1% (9.8). Operating cash flow before non-cash items and interest paid totaled SEK 864 M (513).
Sales for the quarter in Entrance Systems totaled SEK 8,058 M (7,116), with organic growth of 10% (1). Sales growth was very strong in Residential and Perimeter Security and strong in Pedestrian and Industrial. Net sales growth from acquisitions and divestments was 6%. Operating income2 totaled SEK 1,191 M (1,266), which represents an operating margin (EBIT) of 14.8% (17.8). Excluding a one-time gain of SEK 252 M, the operating margin last year was 14.2%. Return on capital employed2 , on an annualized basis, amounted to 15.0% (14.4). Operating cash flow before non-cash items and interest paid totaled SEK 1,023 M (1,610).
Three 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 868 M. The acquisition price on a cash and debt free basis totaled SEK 861 M. Preliminary acquisition analyses indicate that goodwill and other intangible assets with indefinite useful life amount to SEK 576 M. Estimated deferred considerations for acquisitions made during the year amounted to SEK 113 M.
On September 8 it was announced that ASSA ABLOY has signed an agreement to acquire the Hardware and Home Improvement ("HHI") division of Spectrum Brands. HHI is a leading provider of security, plumbing, and builders' hardware products to the North American residential segment with a diversified product offering of locksets, faucets, and builders´ hardware. Key brands include Kwikset, Baldwin, Weiser, Pfister and National Hardware.
HHI is headquartered in California, USA with some 7,500 employees worldwide and has manufacturing facilities in the United States, Mexico, Taiwan, China, and the Philippines.
HHI will become part of the Opening Solutions Americas Division.
The total consideration for the acquisition of HHI amounts to USD 4,300 M on a cash and debt free basis. The transaction will be fully funded by existing cash and new debt.
For the fiscal year ending September 2020, HHI's net sales were USD 1,342 M with adjusted EBITDA margin of around 19%. Based on publicly available financial information for 2020 for both HHI and ASSA ABLOY, the acquisition of HHI will add around 14% to ASSA ABLOY´s consolidated sales. The initial effect on ASSA ABLOY's operating margin will be dilutive. The acquisition will be accretive to EPS from the start.
The transaction is conditional upon regulatory approval and customary closing conditions and is expected to close during the fourth quarter of 2021.
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.
On September 27 it was announced that ASSA ABLOY had signed a definitive agreement to acquire Arran Isle, a leading designer, manufacturer and distributor of door and window hardware in the UK and Ireland. The business has some 560 employees and has manufacturing and distribution sites in the UK, Ireland, Europe and China. Sales in 2020 amounted to about SEK 1,200 M. The acquisition is subject to regulatory approval and customary closing conditions and is expected to close during the fourth quarter of 2021.
On August 18 it was announced that ASSA ABLOY has acquired Omni-ID, a leading US manufacturer of RFID tags and industrial IoT hardware devices for passive and active tagging, tracking, monitoring and alerting applications. The business has some 170 employees, with its head office in Rochester, USA. Sales in 2020 amounted to about SEK 110 M.
On August 11 it was announced that ASSA ABLOY has acquired Capitol Door Service, a leading pedestrian-door distributor and service company in the US. The business has some 50 employees with its head office in Sacramento, USA. Sales in 2020 amounted to about SEK 150 M.
On July 5 it was announced that ASSA ABLOY had signed an agreement to sell its Nordic locksmith business CERTEGO to Nalka Invest, which invests in smalland medium-sized businesses primarily in the Nordic region. The sale of CERTEGO will allow the EMEIA division to reinforce its strategic focus on its core security solutions business.
CERTEGO is a market-leading locksmith and security solutions installation business in the Nordic area. It provides planning, installation and management of mechanical, electro-mechanical and electronic security solutions for customers in verticals of every kind. CERTEGO has a network of over 70 locations with some 1,200 employees in Sweden, Finland, Norway and Denmark. The annualized impact of the divestment on ASSA ABLOY's external sales will be around SEK 1.5 bn. It will have a positive effect on ASSA ABLOY´s operating margin going forward.
The CERTEGO divestment was completed in September 2021.
ASSA ABLOY has committed to set science-based targets and is in the process of developing the targets. In parallel, major carbon reduction projects have been initiated, focusing on our top 20 most energy- and carbon intensive sites responsible for emitting more than 60% of the Group's total carbon emissions.
One such site is the original ASSA factory in Eskilstuna, Sweden which has undergone a major refurbishment. Today, it is the main production facility for cylinders in Scandinavia. Sustainability has been a key part of the site's regeneration and overhaul. The factory now has a solar park on the roof generating over 600 MWh of electricity per year which provides 50% of the site's electricity needs. New building-efficiency measures include new compressors,
LED lighting and low-energy ventilation. The site windows and roof insulation have been upgraded, optimizing natural light and thermal comfort. Electric-car charging stations have been installed for employees and visitors. The project will reduce onsite energy consumption by more than 50%.
Other operating income for the Parent company ASSA ABLOY AB totaled SEK 3,234 M (3,048) for the first nine months of the year. Operating income for the same period amounted to SEK –30 M (230). Investments in tangible and intangible assets totaled SEK 4,220 M (28). Liquidity is good and the equity ratio is 43.0% (39.2).
ASSA ABLOY applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The same accounting and valuation principles as in the latest 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 19 of this Report and to the company's latest Annual Report.
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 www.assaabloy.com.
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 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.
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 at 30 September 2021, will have an effect of –1% on sales in the fourth quarter of 2021 versus the same period last year, while the effect on the operating margin is estimated to be accretive in the fourth quarter of 2021.
On the basis of the currency rates on 30 September 2021, it is estimated that the weighted currency effects on sales in the fourth quarter of 2021 versus the same period last year will be 1%, while the effect on the operating margin is estimated to be slightly dilutive in the fourth quarter of 2021.
The Company's Auditors have not carried out any review of this Report for the third quarter of 2021.
Stockholm, 27 October 2021
Nico Delvaux President and CEO
The Year-end Report and Quarterly Report for the fourth quarter will be published on 4 February 2022.
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 27 October 2021 which can be followed online at www.assaabloy.com.
It is possible to submit questions by telephone on: +46 8 566 426 93, +44 333 300 9031 or +1 833 526 8380
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 CEST on 27 October 2021.
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.20/2021
© ASSA ABLOY – Quarterly Report Q3 2021 10 (19) 10 (19)
| CONDENSED INCOME STATEMENT | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Sales | 22,225 | 23,930 | 64,351 | 69,384 | |
| Cost of goods sold | -13,199 | -14,395 | -38,703 | -41,689 | |
| Gross income | 9,026 | 9,535 | 25,647 | 27,695 | |
| Selling, administrative and R&D costs | -5,597 | -6,143 | -17,456 | -17,532 | |
| Share of earnings in associates | 163 | 0 | 249 | 5 | |
| Revaluation previously owned shares in associates | 1,910 | - | 1,910 | - | |
| Operating income | 5,502 | 3,392 | 10,350 | 10,168 | |
| Finance net | -176 | -159 | -613 | -449 | |
| Income before tax | 5,326 | 3,233 | 9,737 | 9,719 | |
| Tax on income | -888 | -841 | -2,035 | -1,862 | |
| Net income for the period | 4,438 | 2,392 | 7,702 | 7,858 | |
| Net income for the period attributable to: | |||||
| Parent company's shareholders | 4,437 | 2,393 | 7,700 | 7,858 | |
| Non-controlling interests | 1 | 0 | 2 | 0 | |
| Earnings per share | |||||
| Before and after dilution, SEK | 3.99 | 2.15 | 6.93 | 7.07 | |
| Before and after dilution and excluding items affecting comparability, SEK | 2.28 | 2.15 | 5.21 | 7.07 | |
| CONDENSED STATEMENT OF COMPREHENSIVE INCOME | Q3 | Jan-Sep | |||
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Net income for the period | 4,438 | 2,392 | 7,702 | 7,858 | |
| Other comprehensive income: Items that will not be reclassified to profit or loss |
|||||
| Actuarial gain/loss on post-employment benefit obligations, net after tax | -81 | 27 | -484 | 518 | |
| Total | -81 | 27 | -484 | 518 | |
| Items that may be reclassified subsequently to profit or loss | |||||
| Share of other comprehensive income of associates | -51 | 11 | -33 | -9 | |
| Cashflow hedges and net investment hedges, net after tax | 1 | -5 | -1 | -15 | |
| Exchange rate differences reclassified to profit or loss | -246 | - | -246 | - | |
| Exchange rate differences | -891 | 823 | -1,712 | 2,174 | |
| Total | -1,187 | 830 | -1,992 | 2,151 | |
| Total comprehensive income for the period | 3,170 | 3,250 | 5,225 | 10,527 | |
| Total comprehensive income for the period attributable to: | |||||
| Parent company's shareholders | 3,170 | 3,250 | 5,224 | 10,526 | |
| Non-controlling interests | 0 | 0 | 2 | 0 |
| SEK M 2020 2020 2021 ASSETS Non-current assets 72,452 76,729 74,524 Intangible assets 8,026 8,897 8,325 Property, plant and equipment 3,513 3,779 3,330 Right-of-use assets 637 685 636 Investments in associates 212 105 259 Other financial assets 1,338 1,422 1,363 Deferred tax assets 86,178 91,617 88,438 Total non-current assets Current assets 10,079 11,485 12,594 Inventories 13,665 14,913 15,163 Trade receivables 4,750 5,478 5,074 Other current receivables and investments 2,756 4,906 5,995 Cash and cash equivalents 31,250 36,782 38,826 Total current assets 117,428 128,399 127,264 TOTAL ASSETS EQUITY AND LIABILITIES Equity 58,870 62,161 67,214 Equity attributable to Parent company's shareholders 9 12 8 Non-controlling interests Total equity 58,879 62,174 67,222 Non-current liabilities 22,381 25,353 19,887 Long-term loans 2,477 2,722 2,320 Non-current lease liabilities 2,868 2,584 2,457 Deferred tax liabilities 4,958 5,418 4,161 Other non-current liabilities and provisions 32,683 36,078 28,825 Total non-current liabilities Current liabilities 3,514 7,026 5,605 Short-term loans 1,085 1,096 1,081 Current lease liabilities 7,027 7,017 8,547 Trade payables Other current liabilities and provisions 14,238 15,009 15,985 25,865 30,148 31,217 Total current liabilities 117,428 128,399 127,264 TOTAL EQUITY AND LIABILITIES |
CONDENSED BALANCE SHEET | 31 Dec | 30 Sep | |
|---|---|---|---|---|
| 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 | 7,700 | 2 | 7,702 |
| Other comprehensive income | -2,476 | 0 | -2,477 |
| Total comprehensive income | 5,224 | 2 | 5,225 |
| Dividend | -2,222 | -1 | -2,222 |
| Stock purchase plans | 16 | - | 16 |
| Total transactions with shareholders | -2,206 | -1 | -2,206 |
| Closing balance 30 September 2020 | 62,161 | 12 | 62,174 |
| Opening balance 1 January 2021 | 58,870 | 9 | 58,879 |
|---|---|---|---|
| Net income for the period | 7,858 | 0 | 7,858 |
| Other comprehensive income | 2,668 | 0 | 2,669 |
| Total comprehensive income | 10,526 | 0 | 10,527 |
| Dividend | -2,166 | -2 | -2,168 |
| Stock purchase plans | -16 | - | -16 |
| Total transactions with shareholders | -2,182 | -2 | -2,184 |
| Closing balance 30 September 2021 | 67,214 | 8 | 67,222 |
| CONDENSED STATEMENT OF CASH FLOWS | Q3 | Jan-Sep | |||
|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| OPERATING ACTIVITIES | |||||
| Operating income | 5,502 | 3,392 | 10,350 | 10,168 | |
| Depreciation and amortization | 912 | 980 | 2,764 | 2,872 | |
| Revaluation previously owned shares in associates | -1,910 | - | -1,910 | - | |
| Restructuring payments | -155 | -130 | -411 | -397 | |
| Other non-cash items | -219 | 233 | -273 | 137 | |
| Cash flow before interest and tax | 4,130 | 4,476 | 10,521 | 12,781 | |
| Interest paid and received | -90 | -110 | -506 | -407 | |
| Tax paid on income | -1,104 | -805 | -2,456 | -2,157 | |
| Cash flow before changes in working capital | 2,937 | 3,560 | 7,560 | 10,217 | |
| Changes in working capital | 820 | -157 | 795 | -866 | |
| Cash flow from operating activities | 3,756 | 3,404 | 8,355 | 9,350 | |
| INVESTING ACTIVITIES | |||||
| Net investments in intangible assets and property, plant and equipment | -301 | -407 | -1,234 | -1,084 | |
| Investments in subsidiaries | -4,229 | -434 | -5,784 | -1,158 | |
| Divestments of subsidiaries | 446 | 648 | 472 | 694 | |
| Other investments and disposals | 0 | 0 | 0 | -42 | |
| Cash flow from investing activities | -4,084 | -192 | -6,546 | -1,590 | |
| FINANCING ACTIVITIES | |||||
| Dividends | - | -1 | -2,222 | -2,168 | |
| Amortization of lease liabilities | -308 | -313 | -956 | -939 | |
| Net cash effect of changes in borrowings | 1,828 | -451 | 5,855 | -1,428 | |
| Cash flow from financing activities | 1,520 | -764 | 2,677 | -4,535 | |
| CASH FLOW FOR THE PERIOD | 1,192 | 2,447 | 4,486 | 3,226 | |
| CASH AND CASH EQUIVALENTS | |||||
| Cash and cash equivalents at beginning of period | 3,726 | 3,544 | 442 | 2,756 | |
| Cash flow for the period | 1,192 | 2,447 | 4,486 | 3,226 | |
| Effect of exchange rate differences | -12 | 3 | -22 | 13 | |
| Cash and cash equivalents at end of period | 4,906 | 5,995 | 4,906 | 5,995 |
| THE GROUP IN SUMMARY SEK M |
Q3 2019 |
Q4 2019 |
Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
2021 | Jan-Sep Jan-Sep 2021 |
Year | Last 12 2020 months |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 24,034 | 24,946 | 22,173 | 19,953 | 22,225 | 23,298 | 21,805 | 23,648 | 23,930 | 64,351 | 69,384 | 87,649 | 92,682 |
| Organic growth | 4% | 1% | -3% | -18% | -5% | -5% | 4% | 23% | 7% | -9% | 11% | -8% | - |
| Gross income1 | 9,625 | 9,979 | 8,973 | 7,648 | 9,026 | 9,278 | 8,722 | 9,438 | 9,535 | 25,647 | 27,695 | 34,925 | 36,972 |
| Gross margin 1 | 40.0% | 40.0% | 40.5% | 38.3% | 40.6% | 39.8% | 40.0% | 39.9% | 39.8% | 39.9% | 39.9% | 39.8% | 39.9% |
| EBITDA1 | 4,736 | 4,969 | 3,676 | 3,024 | 4,505 | 4,487 | 4,115 | 4,552 | 4,373 | 11,205 | 13,041 | 15,692 | 17,528 |
| EBITDA margin 1 | 19.7% | 19.9% | 16.6% | 15.2% | 20.3% | 19.3% | 18.9% | 19.3% | 18.3% | 17.4% | 18.8% | 17.9% | 18.9% |
| Depreciation, excl attrib. to business combinations EBITA1 |
-726 4,010 |
-781 4,188 |
-792 2,884 |
-787 2,237 |
-771 3,734 |
-853 3,634 |
-774 3,341 |
-812 3,740 |
-833 3,539 |
-2,349 8,856 |
-2,420 10,621 |
-3,202 12,490 |
-3,272 14,255 |
| EBITA margin 1 | 16.7% | 16.8% | 13.0% | 11.2% | 16.8% | 15.6% | 15.3% | 15.8% | 14.8% | 13.8% | 15.3% | 14.3% | 15.4% |
| Amortization attrib. to business combinations | -115 | -141 | -133 | -141 | -142 | -159 | -154 | -151 | -147 | -415 | -452 | -574 | -612 |
| Operating income (EBIT)1 | 3,894 | 4,047 | 2,751 | 2,097 | 3,593 | 3,475 | 3,187 | 3,589 | 3,392 | 8,441 | 10,168 | 11,916 | 13,643 |
| Operating margin (EBIT) 1 | 16.2% | 16.2% | 12.4% | 10.5% | 16.2% | 14.9% | 14.6% | 15.2% | 14.2% | 13.1% | 14.7% | 13.6% | 14.7% |
| Items affecting comparability | - | -312 | - | - | 1 910 | -1 367 | - | - | - | 1,910 | - | 542 | -1,367 |
| Operating income (EBIT) | 3,894 | 3,735 | 2,751 | 2,097 | 5,502 | 2,108 | 3,187 | 3,589 | 3,392 | 10,350 | 10,168 | 12,458 | 12,276 |
| Operating margin (EBIT) | 16.2% | 15.0% | 12.4% | 10.5% | 24.8% | 9.0% | 14.6% | 15.2% | 14.2% | 16.1% | 14.7% | 14.2% | 13.2% |
| Net financial items | -250 | -268 | -232 | -205 | -176 | -169 | -142 | -148 | -159 | -613 | -449 | -782 | -619 |
| Income before tax | 3,645 | 3,467 | 2,519 | 1,892 | 5,326 | 1,938 | 3,045 | 3,441 | 3,233 | 9,737 | 9,719 | 11,676 | 11,658 |
| Profit margin | 15.2% | 13.9% | 11.4% | 9.5% | 24.0% | 8.3% | 14.0% | 14.6% | 13.5% | 15.1% | 14.0% | 13.3% | 12.6% |
| Tax on income Net income for the period |
-948 2,697 |
-947 2,520 |
-655 1,864 |
-492 1,400 |
-888 4,438 |
-469 1,470 |
-792 2,253 |
-229 3,212 |
-841 2,392 |
-2,035 7,702 |
-1,862 7,858 |
-2,504 9,172 |
-2,330 9,327 |
| Net income attributable to: | |||||||||||||
| Parent company's shareholders | 2,696 | 2,517 | 1,864 | 1,399 | 4,437 | 1,471 | 2,253 | 3,212 | 2,393 | 7,700 | 7,858 | 9,171 | 9,329 |
| Non-controlling interests | 1 | 3 | 1 | 1 | 1 | -1 | 0 | 0 | 0 | 2 | 0 | 1 | -1 |
| OPERATING CASH FLOW | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Jan-Sep Jan-Sep | Year | Last 12 | |
| SEK M | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2020 months | |
| Operating income (EBIT) | 3,894 | 3,735 | 2,751 | 2,097 | 5,502 | 2,108 | 3,187 | 3,589 | 3,392 | 10,350 | 10,168 | 12,458 | 12,276 |
| Reversal items affecting comparability | - | 312 | - | - | -1,910 | 1,367 | - | - | - | -1,910 | - | -542 | 1,367 |
| Depreciation and amortization | 842 | 922 | 925 | 927 | 912 | 1,012 | 929 | 963 | 980 | 2,764 | 2,872 | 3,776 | 3,884 |
| Net capital expenditure | -410 | -525 | -491 | -442 | -301 | -439 | -289 | -388 | -407 | -1,234 | -1,084 | -1,674 | -1,523 |
| Change in working capital | 591 | 1,364 | -1,485 | 1,460 | 820 | 1,811 | -701 | -9 | -157 | 795 | -866 | 2,606 | 944 |
| Interest paid and received | -179 | -233 | -172 | -244 | -90 | -189 | -122 | -175 | -110 | -506 | -407 | -694 | -596 |
| Repayment of lease liabilities | -300 | -316 | -326 | -322 | -308 | -319 | -311 | -315 | -313 | -956 | -939 | -1,275 | -1,259 |
| Non-cash items | -37 | -24 | 4 | -58 | -219 | 178 | -57 | -39 | 233 | -273 | 137 | -95 | 315 |
| Operating cash flow Cash conversion |
4,401 1.21 |
5,235 1.39 |
1,206 0.48 |
3,418 1.81 |
4,407 1.29 |
5,529 1.67 |
2,636 0.87 |
3,627 1.05 |
3,619 1.12 |
9,031 1.15 |
9,881 1.02 |
14,560 1.31 |
15,410 1.18 |
| CHANGE IN NET DEBT | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Jan-Sep Jan-Sep | Year | Last 12 | |
| SEK M | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2020 months | |
| Net debt at beginning of period | 37,620 | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 33,050 | 29,755 | 33,050 | 35,059 |
| Operating cash flow | -4,401 | -5,235 | -1,206 | -3,418 | -4,407 | -5,529 | -2,636 | -3,627 | -3,619 | -9,031 | -9,881 | -14,560 | -15,410 |
| Restructuring payments | 181 | 261 | 83 | 173 | 155 | 337 | 138 | 129 | 130 | 411 | 397 | 747 | 734 |
| Tax paid on income | 577 | 1,651 | 878 | 474 | 1,104 | 648 | 532 | 820 | 805 | 2,456 | 2,157 | 3,104 | 2,805 |
| Acquisitions and divestments | 1,425 | 1,018 | 1,584 | 86 | 4,331 | -497 | 385 | 472 | -632 | 6,001 | 226 | 5,504 | -271 |
| Dividend | - | - | - | 2,222 | - | 2,055 | - | 2,167 | 1 | 2,222 | 2,168 | 4,277 | 4,223 |
| Actuarial gain/loss on post-employment benefit oblig. | 289 | -316 | 139 | 407 | 94 | -321 | -619 | -44 | -37 | 640 | -700 | 319 | -1,021 |
| Change to lease liabilities | -51 | 47 | -1 | -110 | 98 | -93 | -29 | -97 | 7 | -14 | -119 | -106 | -212 |
| Exchange rate differences, etc. | 1,203 | -1,218 | 1,845 | -2,093 | -428 | -1,904 | 1,633 | -471 | 568 | -676 | 1,731 | -2,580 | -173 |
| Net debt at end of period | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | 35,059 | 25,732 | 29,755 | 25,732 |
| Net debt/Equity | 0.64 | 0.56 | 0.58 | 0.58 | 0.56 | 0.51 | 0.46 | 0.45 | 0.38 | ||||
| NET DEBT | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| SEK M | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | ||||
| Interest-bearing assets | -113 | -100 | -108 | -76 | -47 | -205 | -189 | -176 | -177 | ||||
| Cash and cash equivalents | -459 | -442 | -1,676 | -3,726 | -4,906 | -2,756 | -3,610 | -3,544 | -5,995 | ||||
| Derivative financial instruments, net | 8 | -53 | -469 | -441 | -350 | -255 | 83 | 1 | 62 | ||||
| Pension provisions | 3,717 | 3,346 | 3,642 | 3,887 | 4,164 | 3,514 | 2,995 | 2,922 | 2,949 | ||||
| Lease liabilities | 3,746 | 3,739 | 3,924 | 3,614 | 3,818 | 3,562 | 3,678 | 3,530 | 3,401 | ||||
| Interest-bearing liabilities | 29,944 | 26,560 | 31,059 | 30,853 | 32,379 | 25,895 | 26,202 | 25,776 | 25,492 | ||||
| Total | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | ||||
| CAPITAL EMPLOYED AND FINANCING | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| SEK M | 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | ||||
| Capital employed | 94,796 | 92,204 | 99,428 | 93,103 | 97,232 | 88,634 | 92,818 | 92,471 | 92,954 | ||||
| - of which goodwill | 59,134 | 57,662 | 61,573 | 58,243 | 64,013 | 58,344 | 60,822 | 60,198 | 60,604 | ||||
| - of which other intangible assets and PPE | 21,296 | 21,191 | 22,189 | 21,064 | 21,613 | 22,134 | 22,775 | 22,190 | 22,246 | ||||
| - of which right-of-use assets | 3,746 | 3,731 | 3,909 | 3,592 | 3,779 | 3,513 | 3,619 | 3,466 | 3,330 | ||||
| - of which investments in associates | 2,643 | 2,595 | 2,772 | 2,665 | 685 | 637 | 638 | 626 | 636 | ||||
| Net debt | 36,843 | 33,050 | 36,371 | 34,112 | 35,059 | 29,755 | 29,160 | 28,509 | 25,732 | ||||
| Non-controlling interests Equity attributable to Parent company´s shareholders |
8 57,946 |
11 59,143 |
13 63,044 |
12 58,980 |
12 62,161 |
9 58,870 |
10 63,649 |
9 63,953 |
8 67,214 |
||||
| OTHER KEYRATIOS | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||
| 2019 | 2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | |||||
| Earnings per share, SEK Earnings per share, excl IAC, SEK 1 |
2,43 2,43 |
2,27 2,49 |
1,68 1,68 |
1,26 1,26 |
3,99 2,28 |
1,32 2,33 |
2,03 2,03 |
2,89 2,89 |
2,15 2,15 |
||||
| Shareholders' equity per share, SEK | 52,17 | 53,25 | 56,76 | 53,10 | 55,96 | 53,00 | 57,30 | 57,57 | 60,51 | ||||
| Return on capital employed | 16,3% | 16,2% | 15,2% | 13,4% | 13,1% | 12,5% | 13,1% | 14,9% | 14,6% | ||||
| Return on equity | 16,9% | 18,0% | 16,3% | 15,0% | 17,0% | 15,5% | 15,1% | 18,5% | 14,4% | ||||
| Net debt/EBITDA | 2,1 | 1,8 | 2,0 | 2,1 | 2,2 | 1,9 | 1,8 | 1,6 | 1,5 | ||||
| Average number of employees | 49,136 | 48,992 | 48,801 | 46,979 | 47,553 | 48,471 | 49,685 | 50,727 | 50,946 |
1) Excluding items affecting comparability (IAC) consisting of restructuring costs and revaluation of previously owned shares in associates.
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
| Q3 and 30 Sep | 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 | 4,724 | 4,908 | 4,748 | 5,363 | 2,255 | 1,947 | 3,404 | 3,678 | 7,093 | 8,033 | - | - | 22,225 23,930 | |
| Sales, internal | 99 | 135 | 31 | 37 | 223 | 324 | 24 | 27 | 23 | 25 | -401 | -548 | - | - |
| Sales | 4,824 5,044 | 4,779 5,400 | 2,479 2,271 | 3,428 3,705 | 7,116 8,058 | -401 | -548 | 22,225 23,930 | ||||||
| Organic growth | -2% | 7% | -5% | 14% | -8% | -7% | -17% | 7% | 1% | 10% | - | - | -5% | 7% |
| Acquisitions and divestments | 0% | -1% | -9% | 2% | 0% | -2% | 9% | 3% | 17% | 6% | - | - | 4% | 2% |
| Exchange-rate effects | -4% | -1% | -8% | -3% | -6% | 1% | -6% | -2% | -7% | -3% | - | - | -7% | -1% |
| Share of earnings in associates | - | - | - - |
4 | 3 | - - |
159 | -2 | - - |
163 | 0 | |||
| EBIT, excl items affecting comparability | 765 | 572 | 966 1,112 | 183 | 132 | 550 | 585 | 1,266 1,191 | -137 | -201 | 3,593 | 3,392 | ||
| EBIT margin, excl items affecting comparability | 15.9% 11.3% | 20.2% 20.6% | 7.4% | 5.8% | 16.0% 15.8% | 17.8% 14.8% | - | - | 16.2% | 14.2% | ||||
| Revaluation previously owned shares in associates | - | - | - | - | - | - | - | - | 1,910 | - | - | - | 1,910 | - |
| Operating income (EBIT) | 765 | 572 | 966 1,112 | 183 | 132 | 550 | 585 | 3,175 1,191 | -137 | -201 | 5,502 | 3,392 | ||
| Operating margin (EBIT) | 15.9% 11.3% | 20.2% 20.6% | 7.4% | 5.8% | 16.0% 15.8% | 44.6% 14.8% | - | - | 24.8% | 14.2% | ||||
| Operating income (EBIT) | 765 | 572 | 966 | 1,112 | 183 | 132 | 550 | 585 | 3,175 | 1,191 | -137 | -201 | 5,502 | 3,392 |
| Revaluation of associate shareholding | - | - | - | - | - | - | - | - | -1,910 | - | - | - | -1,910 | - |
| Depreciation and amortization | 228 | 277 | 115 | 116 | 86 | 77 | 226 | 232 | 251 | 271 | 7 | 8 | 912 | 980 |
| Net capital expenditure | -72 | -134 | -27 | -81 | -40 | -30 | -99 | -74 | -63 | -87 | 0 | -2 | -301 | -407 |
| Amortization of lease liabilities | -78 | -76 | -33 | -38 | -26 | -21 | -35 | -35 | -132 | -138 | -3 | -4 | -308 | -313 |
| Change in working capital | 12 | -80 | 414 | -112 | 238 | -37 | -129 | 157 | 288 | -214 | -4 | 128 | 820 | -157 |
| Operating cash flow by division | 854 | 560 | 1,435 | 997 | 441 | 122 | 513 | 864 | 1,610 1,023 | -137 | -69 | 4,716 | 3,496 | |
| Non-cash items | -219 | 233 | -219 | 233 | ||||||||||
| Interest paid and received | -90 | -110 | -90 | -110 | ||||||||||
| Operating cash flow | 4,407 | 3,619 |
| Jan-Sep and 30 Sep | 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 | 13,404 14,990 | 14,376 14,869 | 5,717 | 5,481 | 10,539 10,563 | 20,315 23,481 | - | - | 64,351 69,384 | |||||
| Sales, internal | 335 | 346 | 71 | 116 | 707 | 807 | 75 | 83 | 80 | 83 | -1,268 -1,436 | - | - | |
| Sales | 13,739 15,336 14,447 14,986 | 6,424 6,288 10,614 10,647 20,395 23,564 | -1,268 -1,436 | 64,351 69,384 | ||||||||||
| Organic growth | -10% | 15% | -7% | 13% | -19% | 3% | -14% | 4% | -2% | 14% | - | - | -9% | 11% |
| Acquisitions and divestments | -1% | 0% | -8% | 1% | 1% | -2% | 12% | 3% | 13% | 10% | - | - | 3% | 4% |
| Exchange-rate effects | -1% | -3% | -1% | -10% | -2% | -3% | -2% | -7% | -2% | -8% | - | - | -1% | -7% |
| Share of earnings in associates | - | - | - | - | 14 | 8 | - | - | 236 | -2 | - | - | 249 | 5 |
| EBIT, excl items affecting comparability | 1,593 2,110 | 2,783 3,084 | 197 | 411 | 1,441 1,630 | 2,832 3,483 | -405 | -550 | 8,441 10,168 | |||||
| EBIT margin, excl items affecting comparability | 11.6% 13.8% | 19.3% 20.6% | 3.1% | 6.5% | 13.6% 15.3% | 13.9% 14.8% | - | - | 13.1% | 14.7% | ||||
| Revaluation previously owned shares in associates | - | - | - | - | - | - | - | - | 1 910 | - | - | - | 1,910 | - |
| Operating income (EBIT) | 1,593 2,110 | 2,783 3,084 | 197 | 411 | 1,441 1,630 | 4,742 3,483 | -405 | -550 | 10,350 10,168 | |||||
| Operating margin (EBIT) | 11.6% 13.8% | 19.3% 20.6% | 3.1% | 6.5% | 13.6% 15.3% | 23.3% 14.8% | - | - | 16.1% | 14.7% | ||||
| Operating income (EBIT) | 1,593 | 2,110 | 2,783 | 3,084 | 197 | 411 | 1,441 | 1,630 | 4,742 | 3,483 | -405 | -550 | 10,350 10,168 | |
| Revaluation of associate shareholding | - | - | - | - | - | - | - | - | -1,910 | - | - | - | -1,910 | - |
| Depreciation and amortization | 690 | 738 | 361 | 377 | 269 | 231 | 679 | 685 | 744 | 814 | 21 | 27 | 2,764 | 2,872 |
| Net capital expenditure | -297 | -339 | -220 | -249 | -147 | -95 | -354 | -165 | -213 | -234 | -3 | -2 | -1,234 | -1,084 |
| Amortization of lease liabilities | -240 | -245 | -98 | -109 | -79 | -68 | -109 | -107 | -419 | -401 | -10 | -10 | -956 | -939 |
| Change in working capital | -174 | -317 | 433 | 33 | 215 | -301 | -218 | 255 | 680 | -659 | -141 | 123 | 795 | -866 |
| Operating cash flow by division | 1,571 1,947 | 3,258 3,136 | 455 | 178 | 1,440 2,298 | 3,624 3,004 | -539 | -412 | 9,809 10,151 | |||||
| Non-cash items | -273 | 137 | -273 | 137 | ||||||||||
| Interest paid and received | -506 | -407 | -506 | -407 | ||||||||||
| Operating cash flow | 9,031 | 9,881 | ||||||||||||
| Capital employed | 18,929 16,986 | 14,046 14,398 | 8,703 | 8,306 | 22,878 21,923 | 32,938 31,796 | -260 | -455 | 97,232 92,954 | |||||
| - of which goodwill | 3,876 | 10,948 10,491 3,444 |
2,981 | 11,107 11,407 2,882 |
4,055 2,567 |
3,881 2,368 |
5,530 | 15,810 15,758 5,071 |
6,599 | 22,094 19,068 8,394 |
- 60 |
- 87 |
64,013 60,604 21,613 22,246 |
|
| - of which other intangible assets and PPE | 1,053 | 854 | 440 | 372 | 238 | 245 | 489 | 526 | 1,550 | 1,291 | 9 | 43 | 3,779 | 3,330 |
| - of which right-of-use assets - of which investments in associates |
1 | 1 | - | - | 641 | 590 | 23 | 28 | 21 | 18 | - | - | 685 | 636 |
| Return on capital employed | 12.7% 15.2% | 23.7% 29.2% | 4.6% | 7.2% | 9.8% 10.1% | 14.4% 15.0% | - | - | 13.1% | 14.6% | ||||
| Average number of employees | 10,665 12,185 | 8,701 | 9,257 | 9,726 | 8,328 | 6,443 | 6,439 | 11,763 14,375 | 255 | 363 | 47,553 50,946 | |||
| Q1-Q4 and 31 Dec | Global | Entrance | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EMEIA | Americas | Asia Pacific | Technologies | Systems | Other | Total | ||||||||
| SEK M | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 2020 | |
| Sales, external | 20,707 18,563 | 23,082 18,907 | 9,477 | 7,916 | 15,321 14,054 | 25,442 28,210 | - | - | 94,029 87,649 | |||||
| Sales, internal | 438 | 418 | 90 | 107 | 1,213 | 926 | 102 | 105 | 110 | 113 | -1,953 -1,668 | - | - | |
| Sales | 21,144 18,982 23,172 19,013 10,689 8,841 15,423 14,158 25,553 28,323 | -1,953 -1,668 94,029 87,649 | ||||||||||||
| Organic growth | 2% | -8% | 7% | -7% | -1% | -16% | 5% | -15% | 2% | -2% | - | - | 3% | -8% |
| Acquisitions and divestments | 0% | -1% | 2% | -9% | 5% | 1% | 16% | 10% | 1% | 15% | - | - | 3% | 4% |
| Exchange-rate effects | 3% | -1% | 8% | -2% | 3% | -2% | 8% | -3% | 5% | -2% | - | - | 6% | -3% |
| Share of earnings in associates | - | - | - | - | 17 | 9 | 5 | 9 | 124 | 239 | - | - | 147 | 257 |
| EBIT, excl IAC | 3,396 2,263 | 4,673 3,698 | 879 | 396 | 2,890 2,023 | 3,652 4,083 | -570 | -547 14,920 11,916 | ||||||
| EBIT margin, excl. IAC | 16.1% 11.9% | 20.2% 19.4% | 8.2% | 4.5% | 18.7% 14.3% | 14.3% 14.4% | - | - | 15.9% 13.6% | |||||
| Restructuring costs | -185 | -448 | - | -51 | -6 | -303 | -4 | -195 | -116 | -220 | - | -150 | -312 -1,366 | |
| Revaluation previously owned shares in associates | - | - | - | - | - | - | - | - | - | 1,909 | - | - | - | 1,909 |
| Operating income (EBIT) | 3,211 1,815 | 4,673 3,647 | 873 | 93 | 2,885 1,828 | 3,535 5,772 | -570 | -697 14,608 12,458 | ||||||
| Operating margin (EBIT) | 15.2% | 9.6% | 20.2% 19.2% | 8.2% | 1.1% | 18.7% 12.9% | 13.8% 20.4% | - | - | 15.5% 14.2% | ||||
| Capital employed | 18,659 16,849 | 19,678 13,201 | 9,053 | 8,191 | 22,329 21,044 | 23,024 30,231 | -539 | -883 | 92,204 88,634 | |||||
| - of which goodwill | 11,121 10,475 | 14,105 10,444 | 4,168 | 3,884 | 15,459 14,881 | 12,809 18,660 | - | - | 57,662 58,344 | |||||
| - of which other intangible assets and PPE | 4,092 | 3,485 | 4,423 | 2,713 | 2,469 | 2,375 | 5,632 | 5,100 | 4,451 | 8,362 | 124 | 99 | 21,191 22,134 | |
| - of which right-of-use assets | 990 | 998 | 499 | 387 | 260 | 264 | 463 | 457 | 1,499 | 1,390 | 19 | 17 | 3,731 | 3,513 |
| - of which investments in associates | 1 | 1 | - | - | 637 | 589 | 23 | 28 | 1,935 | 20 | - | - | 2,595 | 637 |
| Return on capital employed | 17.2% 11.9% 23.3% 24.4% 10.0% 4.4% 13.5% 8.9% 15.8% 13.9% | - | - | 16.2% 12.5% | ||||||||||
| Operating income (EBIT) | 3,211 | 1,815 | 4,673 | 3,647 | 873 | 93 | 2,885 | 1,828 | 3,535 | 5,772 | -570 | -697 | 14,608 12,458 | |
| Restructuring costs | 185 | 448 | - | 51 | 6 | 303 | 4 | 195 | 116 | 220 | - | 150 | 312 | 1,366 |
| Revaluation previously owned shares in associates | - | - | - | - | - | - | - | - | - -1,909 | - | - | - -1,909 | ||
| Depreciation and amortization | 813 | 925 | 569 | 471 | 381 | 355 | 793 | 917 | 794 | 1,078 | 36 | 30 | 3,387 | 3,776 |
| Net capital expenditure | -454 | -407 | -348 | -267 | -220 | -192 | -366 | -430 | -276 | -330 | 3 | -47 | -1,662 -1,674 | |
| Amortization of lease liabilities | -295 | -318 | -149 | -132 | -100 | -108 | -129 | -144 | -477 | -559 | -9 | -14 | -1,159 -1,275 | |
| Change in working capital | 53 | 476 | 517 | 1,067 | -319 | 311 | -5 | 144 | -38 | 702 | -61 | -94 | 148 | 2,606 |
| Operating cash flow by division | 3,515 2,939 | 5,263 4,837 | 622 | 762 | 3,183 2,509 | 3,655 4,974 | -602 | -673 15,635 15,349 | ||||||
| Non-cash items | -324 | -95 | -324 | -95 | ||||||||||
| Interest paid and received | -869 | -694 | -869 | -694 | ||||||||||
| Operating cash flow | 14,442 14,560 | |||||||||||||
| Average number of employees | 11,373 10,281 | 9,360 | 8,787 | 11,016 | 9,892 | 5,594 | 6,374 | 11,313 12,883 | 336 | 254 | 48,992 48,471 |
| Sales by continent Q3 | 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 | 4,291 | 4,326 | 24 | 24 | 138 | 167 | 839 | 1,021 | 2,960 | 3,541 | -194 | -233 | 8,059 | 8,845 |
| North America | 105 | 105 | 4,269 | 4,830 | 186 | 265 | 1,672 | 1,771 | 3,653 | 4,010 | -134 | -205 | 9,752 10,778 | |
| Central- and South America | 14 | 19 | 403 | 522 | 5 | 19 | 76 | 109 | 6 | 17 | -5 | -5 | 498 | 681 |
| Africa | 190 | 228 | 27 | 3 | 3 | 3 | 74 | 73 | 9 | 9 | -6 | -8 | 297 | 308 |
| Asia | 194 | 325 | 50 | 19 | 1,521 | 1,224 | 605 | 525 | 279 | 251 | -33 | -54 | 2,617 | 2,290 |
| Oceania | 29 | 41 | 5 | 2 | 626 | 594 | 163 | 206 | 209 | 230 | -30 | -44 | 1,001 | 1,028 |
| Total | 4,824 | 5,044 | 4,779 | 5,400 | 2,479 | 2,271 | 3,428 | 3,705 | 7,116 | 8,058 | -401 | -548 | 22,225 23,930 | |
| Sales by continent Jan-Sep | 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 | 12,183 13,323 | 43 | 71 | 388 | 455 | 2,733 | 3,003 | 8,285 10,665 | -563 | -650 | 23,070 26,867 | |||
| North America | 329 | 306 | 13,242 13,361 | 584 | 707 | 5,137 | 5,134 | 10,683 11,367 | -453 | -489 | 29,524 30,385 | |||
| Central- and South America | 47 | 53 | 1,030 | 1,452 | 29 | 38 | 274 | 273 | 44 | 51 | -30 | -26 | 1,394 | 1,841 |
| Africa | 469 | 696 | 32 | 9 | 11 | 8 | 291 | 199 | 40 | 34 | -18 | -26 | 825 | 919 |
| Asia | 619 | 862 | 90 | 86 | 3,684 | 3,327 | 1,644 | 1,461 | 793 | 745 | -110 | -144 | 6,720 | 6,338 |
| Oceania | 93 | 95 | 8 | 6 | 1,727 | 1,753 | 535 | 578 | 549 | 702 | -94 | -101 | 2,818 | 3,033 |
| Sales by product group Q3 | 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 | 2,300 | 2,418 | 1,966 | 2,238 | 1,171 | 1,085 | 71 | 73 | 3 | 2 | -157 | -187 | 5,353 | 5,628 |
| Electromechanical and electronic locks | 1,586 | 1,661 | 1,255 | 1,432 | 524 | 549 | 3,461 | 3,649 | 190 | 277 | -182 | -292 | 6,835 | 7,276 |
| Security doors and hardware | 812 | 824 | 1,546 | 1,718 | 762 | 610 | -104 | -17 | 611 | 754 | -33 | -39 | 3,593 | 3,851 |
| Entrance automation | 126 | 140 | 12 | 13 | 22 | 27 | - | - | 6,313 | 7,025 | -29 | -29 | 6,444 | 7,176 |
| Total | 4,824 | 5,044 | 4,779 | 5,400 | 2,479 | 2,271 | 3,428 | 3,705 | 7,116 | 8,058 | -401 | -548 | 22,225 23,930 |
Total 13,739 15,336 14,447 14,986 6,424 6,288 10,614 10,647 20,395 23,564 -1,268 -1,436 64,351 69,384
| Sales by product group Jan-Sep | 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 | 6,524 | 7,376 | 5,964 | 6,358 | 3,197 | 3,122 | 226 | 238 | 6 | 6 | -507 | -511 | 15,408 16,587 | |
| Electromechanical and electronic locks | 4,568 | 5,019 | 3,660 | 3,810 | 1,336 | 1,438 | 10,373 10,389 | 542 | 778 | -589 | -738 | 19,890 20,695 | ||
| Security doors and hardware | 2,287 | 2,510 | 4,794 | 4,790 | 1,841 | 1,662 | 15 | 20 | 1,797 | 2,153 | -80 | -90 | 10,655 11,046 | |
| Entrance automation | 361 | 431 | 29 | 28 | 50 | 67 | - | - | 18,050 20,627 | -93 | -97 | 18,398 21,056 | ||
| Total | 13,739 15,336 | 14,447 14,986 | 6,424 | 6,288 | 10,614 10,647 | 20,395 23,564 | -1,268 -1,436 | 64,351 69,384 |
| 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 | UK | 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 |
| Q3 | Jan-Sep | ||||
|---|---|---|---|---|---|
| SEK M | 2020 | 2021 | 2020 | 2021 | |
| Purchase prices | |||||
| Cash paid for acquisitions during the year | 6,275 | 353 | 7,543 | 761 | |
| Holdbacks and contingent considerations for acquisitions during the year | 357 | 39 | 537 | 113 | |
| Fair value of previously owned shares in associates | 3,752 | - | 3,752 | - | |
| Adjustment of purchase prices for acquisitions in prior years | 0 | 0 | 27 | -6 | |
| Total | 10,384 | 393 | 11,858 | 868 | |
| Acquired assets and liabilities at fair value | |||||
| Intangible assets | 626 | 23 | 795 | 151 | |
| Property, plant and equipment and right-of-use assets | 685 | 16 | 881 | 25 | |
| Other non-current assets | 87 | -4 | 91 | -1 | |
| Inventories | 594 | 58 | 675 | 122 | |
| Current receivables and investments | 908 | 56 | 985 | 131 | |
| Cash and cash equivalents | 2,137 | 30 | 2,173 | 118 | |
| Non-current liabilities | -701 | -2 | -833 | -21 | |
| Current liabilities | -858 | -60 | -1,071 | -233 | |
| Total | 3,478 | 118 | 3,698 | 292 | |
| Goodwill | 6,906 | 275 | 8,161 | 576 | |
| Change in cash and cash equivalents due to acquisitions | |||||
| Cash paid for acquisitions during the year | 6,275 | 353 | 7,543 | 761 | |
| Cash and cash equivalents in acquired subsidiaries | -2,137 | -30 | -2,173 | -118 | |
| Paid considerations for acquisitions in prior years | 91 | 110 | 414 | 515 | |
| Total | 4,229 | 434 | 5,784 | 1,158 |
Fair value adjustments of acquired net assets from acquisitions made in previous periods are included in the above table.
| 30 September 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 | 21,381 | 21,381 | |||
| Financial assets at fair value through profit and loss | 49 | 49 | |||
| Derivatives - hedge accounting | 131 | 131 | 131 | ||
| Derivatives - held for trading | 145 | 145 | 145 | ||
| Financial liabilities | |||||
| Financial liabilities at amortized cost | 34,039 | 34,351 | |||
| Financial liabilities at fair value through profit and loss | 398 | 398 | 398 | ||
| Lease liabilities | 3,401 | 3,401 | |||
| Derivatives - hedge accounting | 0 | 0 | 0 | ||
| Derivatives - held for trading | 337 | 337 | 337 | ||
| Financial instruments | |||||
| 31 December 2020 | 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 Derivative instruments - hedge accounting |
187 240 |
187 240 |
187 240 |
||
| Financial liabilities | |||||
| 32,922 | 33,480 | ||||
| Financial liabilities at amortized cost 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.
| CONDENSED INCOME STATEMENT | Year Jan-Sep |
||
|---|---|---|---|
| SEK M | 2020 | 2020 | 2021 |
| Operating income | 868 | 230 | -30 |
| Income before appropriations and tax | 5,363 | 1,777 | 2,775 |
| Net income for the period | 5,552 | 1,777 | 2,820 |
| CONDENSED BALANCE SHEET | 31 Dec 30 Sep |
|||
|---|---|---|---|---|
| SEK M | 2020 | 2020 | 2021 | |
| Non-current assets | 38,961 | 38,143 | 43,067 | |
| Current assets | 21,069 | 24,301 | 19,312 | |
| Total assets | 60,030 | 62,444 | 62,379 | |
| Equity | 26,186 | 24,455 | 26,824 | |
| Untaxed reserves | 1,125 | 911 | 1,125 | |
| Non-current liabilities | 15,677 | 17,252 | 14,370 | |
| Current liabilities | 17,042 | 19,827 | 20,060 | |
| Total equity and liabilities | 60,030 | 62,444 | 62,379 |
Change in sales for comparable units after adjustments for Interest-bearing liabilities less interest-bearing assets. acquisitions, divestments and exchange rate effects. See the table on net debt for detailed information.
Operating income before depreciation and amortization as a Total assets less interest-bearing assets and non-interestpercentage of sales. bearing liabilities including deferred tax liability.
Operating income before amortization of intangible assets Net debt in relation to equity. recognized in business combinations, as a percentage of sales.
Operating income as a percentage of sales.
Income before tax as a percentage of sales. the last twelve months.
Cash Flow from operating activities excluding restructuring Operating Income (EBIT), excluding Items Affecting payments and tax paid on income minus net capital expenditure Comparability, for the last twelwe months as a percentage of and repayment of lease liabilities. average capital employed excluding restructuring provisions
Operating cash flow in relation to income before tax excluding Return on equity items affecting comparability. Net income attributable to parent company's shareholders
Investments in, less disposals of, intangible assets and property, plant and equipment. Earnings per share after tax and dilution
Depreciation, amortization and impairment of intangible assets, potential dilution. property, plant and equipment and right-of-use assets.
Operating margin (EBIT) Shareholders' equity as a percentage of total assets.
Profit margin (EBT) Net debt at the end of the period in relation to EBITDA for
for the same period.
for the last twelve months as a percentage of average parent Net capital expenditure company's shareholders equity for the same period.
Net income excluding non-controlling interests divided by Depreciation and amortization weighted average number of outstanding shares after any
Equity excluding non-controlling interests in relation to number of outstanding shares after any potential dilution.
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