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INVISIO Interim / Quarterly Report 2023
3065_ir_2023-07-21_4f41e44a-ae4d-44ad-8dc7-3f5e0b57cf19.pdf
Interim / Quarterly Report
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Protection at work, a better life at home
INVISIO®
Continued strong order intake and a well-filled order book
The strong trend continues. The order intake was just over SEK 400 million, which is a record for an individual quarter. The current trend with high order intake and an order book of almost SEK 800 million, as well as a generally active market, means that we stand by previous statements concerning continued strong sales, order intake and profitability in 2023.
Lars Højgård Hansen, CEO
Important events during the quarter
- For the first time the order intake exceeded SEK 400 million in an individual quarter and rolling twelve month sales SEK 1 billion.
- INVISIO received its largest order ever, worth SEK 130 million, from the US Department of Defense.
- The company received an order worth SEK 90 million from a European NATO country.
- INVISIO launched a new generation of the V60 control unit, which enables data traffic, giving enhanced user functionality and flexibility.
Important events after the quarter
- There are no important events after the quarter to report.
| SEK million | Q2 | Jan-June | Full year | ||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Δ % | 2023 | 2022 | Δ % | 2022 | |
| Revenue | 269.8 | 153.7 | 76 | 581.2 | 291.1 | 100 | 775.5 |
| Gross profit | 163.3 | 88.4 | 85 | 357.9 | 170.4 | 110 | 449.7 |
| Gross margin, % | 60.5 | 57.5 | 61.6 | 58.5 | 58.0 | ||
| EBITDA | 60.5 | 3.4 | 1,703 | 157.1 | 11.2 | 1,307 | 113.0 |
| EBITDA margin, % | 22.4 | 2.2 | 27.0 | 3.8 | 14.6 | ||
| Operating profit | 45.4 | -8.3 | 129.3 | -12.1 | 65.2 | ||
| Operating margin, % | 16.8 | -5.4 | 22.2 | -4.2 | 8.4 | ||
| Profit/loss for the period | 27.3 | -7.3 | 87.3 | -11.7 | 44.5 | ||
| Earnings per share for the period, SEK | 0.60 | -0.16 | 1.92 | -0.26 | 0.99 | ||
| Cash flow from operating activities | 85.9 | 8.1 | 957 | 166.2 | 11.5 | 1,348 | 41.7 |
| Order intake | 402.0 | 157.7 | 155 | 717.2 | 554.2 | 29 | 1,141.6 |
| Order book | 790.3 | 481.7 | 64 | 790.4 | 481.7 | 64 | 624.7 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
CEO's comments
Continued strong order intake and a well-filled order book
The strong trend also continued in the second quarter of 2023. The order intake was just over SEK 400 million, which is a record for an individual quarter. Sales were about SEK 270 million and the total order book value at the end of the period was almost SEK 800 million.
For the first half year the order intake was just over SEK 700 million and sales just over SEK 580 million, which is double the figure for the first half year of 2022.
Behind this positive development lies a strong market with high underlying demand for our products and systems – but also consistently implemented strategic initiatives as part of the offer and organization that mean we can now draw the full advantage from the increasingly high activity level.
High delivery capacity
In our close partnership with customers we always endeavor to deliver in line with their needs and wishes. This means that sales in a single quarter not always follow the order intake development. The company's development should therefore be assessed in a longer perspective.
Our higher inventory level at the close of the quarter reflects our readiness to deliver in coming quarters.
R12 sales exceeded SEK 1 billion
In terms of rolling twelve months, for the first time sales exceed SEK 1 billion – a very gratifying milestone in INVISIO's history.
Two orders together worth SEK 220 million
During the quarter INVISIO received two large orders for systems under the Racal Acoustics brand, for use in heavy vehicles.
In early June the US Department of Defense submitted an order worth about SEK 130 million, which is the largest order to date in INVISIO's history. Most of the systems, which include the new RA4000 Magna headset, will be delivered in the current year.
The second order was received earlier in the quarter and was worth about SEK 90 million. It was for the same type of system and the customer is a European NATO country. Here too, most of the deliveries will be made in the current year.
Successful integration of Racal Acoustics
We can note that the acquisition of Racal Acoustics in early 2021 has turned out very well. The work of integration has progressed according to plan.
By combining Racal Acoustics' solid product portfolio with INVISIO's global sales organization we have broadened both the offer and customer base.
In all, this gives us greater potential to strengthen our position in an increasingly intensive vehicle market. We see this not least in the USA, one of the single largest and most important markets for us.
The acquisition was partly financed through a loan, which was redeemed in the second quarter. INVISIO is thereby again debt-free.
Demand will continue to be strong for a long time to come
Defense spending in Europe is now at its highest level since the 1990s and it is our firm conviction that it will continue to be high for a long time to come. Behind this is of course the war in Ukraine and generally increased geopolitical uncertainty.
Continued positive expectations for 2023
The forward-looking investments in combination with a strong order book and a generally active market, mean that we stand by previous statements concerning continued strong sales, order intake and profitability in 2023.
Lars Højgård Hansen, CEO
SEK 402 million SEK 790 million
Order intake, Q2 2023 Order book, Q2 2023
SEK 270 million 17%
Revenue, Q2 2023 Operating margin, Q2 2023
82% 19%
Sales growth, R12 Operating margin, R12
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Order intake, sales and profit
Second quarter 2023
The order intake in the quarter amounted to SEK 402.0 million (157.7). The order book at the end of the quarter contained orders to the value of SEK 790.3 million (481.7), most of which are to be delivered this year.
Revenue in the quarter amounted to SEK 269.8 million (153.7), which is an increase of 76 per cent compared with the corresponding period in the previous year. In comparable currencies sales increased by 63 per cent.
Gross profit was SEK 163.3 million (88.4) and the gross margin was 60.5 per cent (57.5). The most important factors for the gross margin are the proportion of direct sales versus sales via distribution partners and the product mix during the reporting period.
Operating expenses including depreciation/amortization amounted to SEK 117.9 million (96.7) in the quarter, which is an increase of 22.0 per cent compared with the corresponding period in the previous year.
Revenue by geographical area during the quarter (%)
Europe incl Sweden 47 %
North America 30 %
Rest of the world 23 %
For more information, please see Note 2.
The cost increase compared with the previous quarter was 6.5 per cent. This is in line with the plan and the trend in recent quarters. The increase in operating expenses derives mainly from forward-looking investments in the offer and organization.
EBITDA was SEK 60.5 million (3.4), which resulted in a margin of 22.4 per cent (2.2). The earnings growth is mainly explained by increased sales and demonstrates the scalability of INVISIO's business model.
During the quarter development costs of SEK 9.4 million (5.7) were capitalized.
Depreciation/amortization in the quarter amounted to SEK 15.1 million (11.6). Depreciation on completed development projects amounted to SEK 6.1 million (5.0). Of the remaining SEK 9.0 million (6.6), SEK 3.3 million (3.3) refers to amortization of other intangible assets. Amortization of rights of use (leases) of SEK 3.7 million (2.1) is also included, as well as depreciation of property, plant and equipment of SEK 2.0 million (1.2). For more information, please see Note 3.
The operating profit (EBIT) was SEK 45.4 million (-8.3). The operating margin was 16.8 per cent (-5.4)
Net financial income was SEK -7.9 million (0.3). The main reason for the negative net financial income is the weakened Swedish krona and stronger sterling against the dollar.
Profit/loss before tax amounted to SEK 37.6 million (-8.0) and profit/loss for the period was SEK 27.3 million (-7.3).
Earnings per share were SEK 0.60 (-0.16).
Order intake in the quarter and R12 (SEK million)
Revenues in the quarter and R12 (SEK million)
Gross margin in the quarter and R12 (%)
Order book in the quarter and R12 (SEK million)
Operating expenses in the quarter and R12 (SEK million)
Operating margin in the quarter and R12 and EBITDA margin R12 (%)
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Order intake, sales and profit (cont.)
First half year 2023
Sales for the first half of 2023 were SEK 581.2 million (291.1). That is an increase of 100 per cent compared to the corresponding quarter in the previous year. In comparable currencies sales increased by 89 per cent.
For the first time rolling twelve month sales (R12) exceeded SEK 1 billion.
Gross profit was SEK 357.9 million (170.4) and the gross margin was 61.6 per cent (58.5).
Operating expenses including depreciation for the first half of 2023 were SEK 228.6 million (182.5). The increase is according to plan and enables INVISIO to take advantage of the business opportunities in a more active market.
During the period development costs of SEK 18 million (10.8) were capitalized.
Operating expenses include depreciation of SEK 27.8 million (23.3).
EBITDA was SEK 157.1 million (11.2), which resulted in a margin of 27.0 per cent (3.8).
Operating profit for the period was SEK 129.3 million (-12.1) and the operating margin was 22.2 per cent (-4.2).
Net financial income was SEK -8.1 million (0.1), which mainly derives from exchange rate changes.
Profit/loss before tax amounted to SEK 121.2 million (-12.0) and profit/loss for the period was SEK 87.3 million (-11.7).
Earnings per share were SEK 1.92 (-0.26).
Cash flow, investments and financial position
Cash flow and investments
The Group's cash flow for the first half of 2023 was SEK 95.8 million (-13.8), of which cash flow from operating activities was SEK 166.2 million (11.5). The stronger cash flow level, compared with the corresponding period in the previous year, is mainly due to increased sales.
The inventory value amounted to SEK 196.7 million (141.6) at the close of the period. The increase in inventories is mainly due to impending deliveries.
Cash flow from investing activities in the first half year amounted to SEK -48.5 million (-12.8). Acquisition of property, plant and equipment, which amounted to SEK -29.7 million (-2.0), including new and existing rental agreements (IFRS 16), which were extended.
Cash flow from financing activities was SEK -21.8 million (-12.5). The decrease can be mainly attributed to amortization of the acquisition loan, but also to dividend in the second quarter.
Cash and cash equivalents and financial position
INVISIO is again debt-free, after redeeming the acquisition loan during the quarter. The Group's cash and cash equivalents at the close of the quarter amounted to SEK 232.3 million (125.5).
Equity on the same date amounted to SEK 672.0 million (432.9), which gave an equity/assets ratio of 71 per cent (63).
INTERIM REPORT JANUARY-JUNE 2023
INTERIM REPORT JANUARY-JUNE 2023
The first step in INVISIO's strategy in a new market is normally to establish a customer relationship with the special forces in defense and law enforcement. Their very high standards for equipment make them an important reference when addressing broader and larger user categories.
Other information
Parent company
Net sales for the parent company for the first half year amounted to SEK 0.0 million (0.0). The operating profit was SEK -6.6 million (-6.7). Net financial income amounted to SEK 49.9 million (-1.4), of which dividend from subsidiaries was SEK 52.5 million.
At the close of the period the Parent Company's cash and bank balances amounted to SEK 43.2 million (42.2). Equity amounted to SEK 356.5 million (244.2), which gave an equity/assets ratio of 99 per cent (70). The number of employees of the parent company was 1 person (1).
Employees
The number of employees in the Group, restated as full time positions, was 234 (195) at the close of the period. Of the employees, 191 were men (162) and 43 women (33).
Material risks and uncertainties
INVISIO's business and earnings are affected by a number of external and internal factors. There is a continuous ongoing process to identify all existing risks and to assess how each respective risk is to be managed. The risks can be divided into market-related, operational, sustainability and climate-related, as well as financial risks. For a more detailed description of these risks, please refer to INVISIO's annual report for 2022.
Financial Instruments
The fair value of the Group's financial assets and liabilities is estimated to be equal to the book value.
Review
This interim report has not been reviewed by the company's auditors.
Stockholm, July 21 2023
Lars Højgård Hansen
President/CEO
INVISIO®
INVISIO in brief
The core of INVISIO's business is to develop and market, on the basis of good customer understanding and innovative capacity, advanced communication systems that help professionals in noisy and mission critical environments to work more safely and effectively while protecting their hearing.
The personal system and Intercom solution
INVISIO's offer consists of both personal communication systems for use in the field and in vehicles, and an Intercom system for use in various forms of transport.
The personal equipment reduces high noise levels and enables disruption-free communication in noisy and mission-critical environments.
The Intercom system makes it possible for users of the personal equipment to communicate within the group and with others while on the move.
The products are marketed under the INVISIO and Racal Acoustics brands.
A structurally growing niche market
INVISIO mainly addresses customers in defense as well as law enforcement and security, in the USA and Europe and selected countries in Asia. The company estimates that the annual value of the total addressable market for personal equipment and the Intercom system amounts to about SEK 14 billion.
At present about 85 per cent of revenue comes from European and American defense customers. However, the company sees steadily increasing business opportunities in the law enforcement and security market as well as new geographical markets.
Sales primarily through own channels
Sales are from the headquarters in Copenhagen and via own sales offices in the USA, France, Italy, the United Kingdom and Thailand. Sales are also via a global network of partners and resellers.
Major business transactions are normally via procurements, which are often time-consuming due to extensive customer tests and administrative processes and.
INVISIO has long-term framework agreements with customers in the USA, Canada, the United Kingdom, Australia, Sweden and Denmark, among others.
Uneven order flow and sales and varying delivery times
Order intake and sales can fluctuate between quarters and the company's development should therefore be evaluated in a longer time perspective than an individual quarter or year.
For products under the INVISIO brand deliveries are usually within 2-6 months, while for solutions under Racal Acoustics it is not unusual for an initial part-delivery to be made within six months and the remaining deliveries to be made only after 1-3 years, in line with the customers' roll-out plans and vehicle deliveries.
An organizational structure focused on core business
INVISIO focuses on development and sales, while European contract manufacturers are responsible for most of the manufacturing. Outsourcing this to external partners ensures the flexibility to be able to manage variations in order volumes.
High growth with sound profitability
INVISIO is a distinct growth company whose financial targets are an average sales growth of 20 per cent per year and an operating margin that exceeds 15 per cent over time.
In the five-year period 2018-2022 average annual sales growth was approximately 16 per cent and the average operating margin was approximately 14 per cent.
The share is listed on Nasdaq Stockholm and is in the Mid Cap segment.
> “By enabling safe communication and hearing protection in critical situations INVISIO creates value for both individuals and society as a whole.”
Users
- Safer work environment
- Increased operational capacity
- Prevents lifelong hearing loss and related problems
Society
- Higher efficiency
- Lower costs for rehabilitation and compensation for hearing loss
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Condensed consolidated income statement and consolidated statement of comprehensive income
Data per share
| SEK million | Note | Q2 | Jan-June | Full year | ||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | ||
| Revenue | 2 | 269.8 | 153.7 | 581.2 | 291.1 | 775.5 |
| Cost of goods sold | -106.5 | -65.3 | -223.3 | -120.7 | -325.7 | |
| Gross profit | 163.3 | 88.4 | 357.9 | 170.4 | 449.7 | |
| Operating expenses* | 3 | -117.9 | -96.7 | -228.6 | -182.5 | -384.5 |
| Operating profit | 45.4 | -8.3 | 129.3 | -12.1 | 65.2 | |
| Net financial items | -7.9 | 0.3 | -8.1 | 0.1 | -2.7 | |
| Profit/loss before tax | 37.6 | -8.0 | 121.2 | -12.0 | 62.5 | |
| Income tax | 4 | -10.3 | 0.6 | -33.9 | 0.4 | -18.0 |
| Profit/loss for the period | 27.3 | -7.3 | 87.3 | -11.7 | 44.5 | |
| OTHER COMPREHENSIVE INCOME | ||||||
| Items that may subsequently be reclassified to profit or loss | ||||||
| Translation differences from foreign operations for the period | 35.8 | 17.9 | 43.4 | 21.8 | 38.7 | |
| Comprehensive income for the period | 63.1 | 10.6 | 130.8 | 10.1 | 83.2 | |
| (Attributable to parent company shareholders) | ||||||
| * Operating expenses include depreciation of | 3 | -15.1 | -11.6 | -27.8 | -23.3 | -47.8 |
| Q2 | Jan-June | Full year | ||||
| --- | --- | --- | --- | --- | --- | |
| 2023 | 2022 | 2023 | 2022 | 2022 | ||
| Earnings per share for the period, SEK | 0.60 | -0.16 | 1.92 | -0.26 | 0.99 | |
| Earnings per share after dilution for the period, SEK | 0.60 | -0.16 | 1.91 | -0.26 | 0.99 | |
| Equity per share, SEK | 14.74 | 9.61 | 14.74 | 9.61 | 11.32 | |
| Equity per share after dilution, SEK | 14.30 | 9.61 | 14.30 | 9.61 | 11.32 | |
| Equity/assets ratio, % | 71 | 63 | 71 | 63 | 64 | |
| Number of shares, thousands | 45,590 | 45,049 | 45,590 | 45,049 | 45,049 | |
| Average number of shares outstanding, thousands | 45,227 | 44,625 | 45,138 | 44,625 | 44,838 | |
| Average number of outstanding shares after dilution, thousands | 46,761 | 45,049 | 46,269 | 45,049 | 45,049 | |
| Share price at close of period, SEK | 230.00 | 147.60 | 230.00 | 147.60 | 164.60 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Condensed consolidated statement of financial position
| SEK million | Note | June 30, 2023 | June 30, 2022 | December 31, 2022 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 61.3 | 55.5 | 56.2 | |
| Capitalized development costs | 3 | 115.9 | 97.3 | 103.5 |
| Other intangible assets | 3 | 79.6 | 84.4 | 79.2 |
| Property, plant and equipment | 3 | 29.7 | 15.9 | 20.8 |
| Rights of use, leases | 3 | 37.0 | 27.0 | 22.8 |
| Long-term deposits for rent | 3.7 | 2.5 | 2.7 | |
| Deferred tax assets | 4 | 6.3 | 3.1 | 3.6 |
| Total non-current assets | 333.5 | 285.7 | 288.9 | |
| Current assets | ||||
| Inventories | 196.7 | 141.6 | 144.4 | |
| Trade receivables | 142.0 | 111.5 | 194.5 | |
| Other current receivables | 41.9 | 26.6 | 45.0 | |
| Cash and cash equivalents | 232.3 | 125.5 | 127.1 | |
| Total current assets | 612.8 | 405.2 | 511.0 | |
| TOTAL ASSETS | 946.3 | 690.9 | 799.9 | |
| SEK million | Note | June 30, 2023 | June 30, 2022 | December 31, 2022 |
| --- | --- | --- | --- | --- |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||
| Shareholders' equity | 672.0 | 432.9 | 510.0 | |
| Non-current liabilities | ||||
| Liabilities to credit institutions | — | 55.0 | 45.0 | |
| Lease liabilities | 32.9 | 19.9 | 16.1 | |
| Deferred tax liabilities | 4 | 41.1 | 35.3 | 34.6 |
| Total long-term liabilities | 74.0 | 110.2 | 95.6 | |
| Current liabilities | ||||
| Liabilities to credit institutions | — | 20.0 | 20.0 | |
| Trade payables | 87.8 | 51.6 | 63.7 | |
| Lease liabilities | 8.5 | 8.6 | 8.7 | |
| Other current liabilities | 104.1 | 67.5 | 101.9 | |
| Total current liabilities | 200.3 | 147.8 | 194.3 | |
| TOTAL EQUITY AND LIABILITIES | 946.3 | 690.9 | 799.9 | |
| SEK million | Note | June 30, 2023 | June 30, 2022 | December 31, 2022 |
| --- | --- | --- | --- | --- |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||
| Opening balance | 510.0 | 417.5 | 417.5 | |
| New issue through exercising employee stock options | 58.6 | 34.7 | 36.0 | |
| Employee Stock Option Program | 4.2 | 1.8 | 4.5 | |
| Dividend | -31.5 | -31.2 | -31.2 | |
| Comprehensive income | 130.8 | 10.1 | 83.2 | |
| Closing balance | 672.0 | 432.9 | 510.0 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Condensed consolidated statement of cash flow
| SEK million | Q2 | Jan-June | Full year | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Operating activities | |||||
| Profit/loss before tax | 37.6 | -8.0 | 121.2 | -12.0 | 62.5 |
| Adjustments for non-cash items | 20.4 | 11.6 | 36.9 | 28.0 | 57.4 |
| Income tax paid | -3.3 | -7.4 | -10.7 | -8.8 | -19.0 |
| Cash flow from operating activities before changes in working capital | 54.7 | -3.8 | 147.4 | 7.1 | 100.9 |
| Changes in inventories | -39.2 | -14.9 | -40.8 | -16.0 | -13.9 |
| Changes in operating receivables | 70.7 | 10.4 | 53.2 | 15.1 | -81.9 |
| Changes in operating liabilities | -0.2 | 16.4 | 6.3 | 5.3 | 36.6 |
| Cash flow from changes in working capital | 31.3 | 11.9 | 18.7 | 4.4 | -59.2 |
| Cash flow from operating activities | 85.9 | 8.1 | 166.2 | 11.5 | 41.7 |
| Investing activities | |||||
| Capitalization of development costs | -9.4 | -5.7 | -18.0 | -10.8 | -23.9 |
| Purchases of property, plant, and equipment | -19.9 | -0.5 | -29.7 | -2.0 | -9.6 |
| Acquisition of financial assets | 0.0 | 0.0 | -0.8 | 0.0 | -0.1 |
| Cash flow from investing activities | -29.3 | -6.3 | -48.5 | -12.8 | -33.5 |
| SEK million | Q2 | Jan-June | Full year | ||
| --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Financing activities | |||||
| New issue through exercising employee stock options | 58.6 | 34.7 | 58.6 | 34.7 | 36.0 |
| Raising / Amortization of loans | -60.0 | -5.0 | -65.0 | -10.0 | -20.0 |
| Changes in lease liabilities | 10.2 | -1.4 | 16.1 | -6.0 | -9.9 |
| Dividend paid | -31.5 | -31.2 | -31.5 | -31.2 | -31.2 |
| Cash flow from financing activities | -22.7 | -2.9 | -21.8 | -12.5 | -25.1 |
| CASH FLOW FOR THE PERIOD | 33.9 | -1.1 | 95.8 | -13.8 | -17.0 |
| Cash and cash equivalents at start of period | 190.3 | 123.3 | 127.1 | 134.8 | 134.8 |
| Translation differences in cash and cash equivalents | 8.0 | 3.4 | 9.4 | 4.5 | 9.2 |
| Cash and cash equivalents at end of period | 232.3 | 125.5 | 232.3 | 125.5 | 127.1 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Condensed parent company income statement
| SEK million | Q2 | Jan–June | Full year | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Revenue | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
| Operating expenses | -4.0 | -3.7 | -6.6 | -6.8 | -11.7 |
| Operating profit | -4.0 | -3.7 | -6.6 | -6.7 | -11.6 |
| Net financial items* | 50.6 | -1.2 | 49.9 | -1.4 | 37.0 |
| Profit/loss before tax | 46.6 | -4.9 | 43.3 | -8.2 | 25.4 |
| Income tax | — | — | — | — | — |
| Profit/loss for the period | 46.6 | -4.9 | 43.3 | -8.2 | 25.4 |
| * Of which dividend from subsidiaries | 52.5 | — | 52.5 | — | 40.0 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Condensed parent company balance sheet
| SEK million | June 30, 2023 | June 30, 2022 | December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Participations in Group companies | 312.7 | 305.7 | 308.5 |
| Total non-current assets | 312.7 | 305.7 | 308.5 |
| Current assets | |||
| Receivables from Group companies | 3.9 | — | 38.3 |
| Other current receivables | 0.9 | 0.6 | 0.4 |
| Cash and bank balances | 43.2 | 42.2 | 5.0 |
| Total current assets | 48.0 | 42.8 | 43.7 |
| TOTAL ASSETS | 360.7 | 348.6 | 352.2 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted equity | 67.2 | 66.6 | 66.6 |
| Non-restricted equity | 289.3 | 177.8 | 215.3 |
| Total shareholders' equity | 356.5 | 244.4 | 281.9 |
| Non-current liabilities | |||
| Liabilities to credit institutions | — | 55.0 | 45.0 |
| Total long-term liabilities | — | 55.0 | 45.0 |
| Current liabilities | |||
| Liabilities to credit institutions | — | 20.0 | 20.0 |
| Trade payables | 0.5 | 0.5 | 0.3 |
| Liabilities to Group companies | 2.5 | 27.2 | 2.6 |
| Other current liabilities | 1.2 | 1.5 | 2.4 |
| Total current liabilities | 4.2 | 49.2 | 25.3 |
| TOTAL EQUITY AND LIABILITIES | 360.7 | 348.6 | 352.2 |
| SEK million | June 30, 2023 | June 30, 2022 | December 31, 2022 |
| --- | --- | --- | --- |
| PARENT COMPANY STATEMENT OF CHANGES IN EQUITY | |||
| Opening balance | 281.9 | 247.2 | 247.2 |
| New issue through exercising employee stock options | 58.6 | 34.7 | 36.0 |
| Employee Stock Option Program | 4.2 | 1.8 | 4.5 |
| Dividend | -31.5 | -31.2 | -31.2 |
| Profit/loss for the period* | 43.3 | -8.2 | 25.4 |
| Closing balance | 356.5 | 244.4 | 281.9 |
| * Of which dividends from subsidiaries | 52.5 | — | 40.0 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Notes
Note 1 / Accounting policies and valuation principles
The interim report for the Group was prepared in accordance with IAS 34, the Swedish Financial Reporting Board's Recommendation RFR 1, Supplementary Accounting Rules for Groups, and the Annual Accounts Act. The Parent Company's accounts were prepared in accordance with RFR 2, Accounting for legal entities and the Annual Accounts Act. The accounting policies applied are consistent with the policies described in INVISIO's annual report for 2022.
New standards
None of the new standards and amendments of interpretations and existing standards which are effective for financial years starting on or after January 1, 2023 are expected to have any significant impact on the Group's financial statements.
Note 2 / Revenue by geographical area
| SEK million | Q2 | Jan–June | Full year | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Sweden | 2.3 | 7.8 | 5.6 | 14.7 | 26.0 |
| Europe | 124.6 | 55.5 | 332.4 | 141.2 | 425.4 |
| North America | 81.7 | 74.7 | 178.0 | 111.6 | 247.8 |
| Rest of the world | 61.3 | 15.6 | 65.2 | 23.7 | 76.3 |
| Total | 269.8 | 153.7 | 581.2 | 291.1 | 775.5 |
Note 3 / Depreciation/amortization
| SEK million | Q2 | Jan–June | Full year | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | |
| Amortization of Capitalized development costs | 6.1 | 5.0 | 12.1 | 10.1 | 21.0 |
| Amortization of Other intangible assets* | 3.3 | 3.3 | 6.4 | 6.6 | 12.9 |
| Amortization of Rights of use (leases) | 3.7 | 2.1 | 5.7 | 3.9 | 8.4 |
| Depreciation of Property, plant and equipment | 2.0 | 1.2 | 3.6 | 2.7 | 5.5 |
| Total | 15.1 | 11.6 | 27.8 | 23.3 | 47.8 |
- Other intangible assets refer to the values allocated to intangible non-current assets, such as customer relations, technology and trade marks, in connection with the acquisition of Racol Acoustics.
Note 4 / Tax
Deferred tax assets referring to tax loss carry forwards are recognized to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. An individual assessment is made of each subsidiary with reference to historical performance and possibilities of utilizing the loss carry-forwards.
The Group's total loss carry-forwards as at June 30, 2023 were SEK 159.4 million (143.7), of which none are capitalized. Unutilized loss carry-forwards refer mainly to the Parent Company and cannot be capitalized at present. All loss carry-forwards have an unlimited life.
| SEK million | June 30, 2023 | June 30, 2022 |
|---|---|---|
| Deferred tax assets | ||
| Tax asset attributable to other temporary differences | 6.3 | 3.1 |
| Closing balance | 6.3 | 3.1 |
| Deferred tax liabilities | ||
| Tax liability attributable to capitalized development costs in Denmark | -22.8 | -20.5 |
| Tax liability attributable to temporary differences in other intangible assets | -19.0 | -15.1 |
| Tax asset attributable to other temporary differences in Denmark | 0.7 | 0.3 |
| Closing balance | -41.1 | -35.3 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Financial key figures, alternative performance measures and other definitions
INVISIO's financial statements include financial key figures that are specified in current financial reporting rules, alternative performance measures in accordance with ESMA's definition and other key figures related to the business. The alternative performance measures are regarded as relevant for an investor who wants to understand the company's results and financial position better. Definitions and reconciliation of the alternative performance measures that are not directly reconcilable with the financial statements can be found below. Reconciliation is against the closest comparable IFRS financial measure.
Gross margin
Gross profit as a percentage of total income.
Operating margin
Operating profit as a percentage of total revenue.
Profit margin
Profit for the period as a percentage of total revenue.
EBITDA
Operating profit before depreciation and impairment losses.
EBIT (Operating profit)
Operating profit after depreciation and impairment losses. INVISIO defines EBIT (earnings before interest and tax) in the same way as operating profit.
Operating expenses
Selling and marketing costs, Administrative expenses and Development costs.
Net financial items
Financial income less Financial expenses.
Equity/assets ratio
Equity divided by total assets (balance sheet total).
Number of shares
Number of outstanding shares at the close of the period.
Number of shares after dilution
Number of outstanding shares at the close of the period plus the number of shares that would be added if all potential dilutive shares were converted to shares.
Only the option programs whose issue price is less than the average market price of the shares during the period can lead to a dilutive effect.
Average number of outstanding shares
Weighted average of the number of outstanding shares during the period.
Average number of outstanding shares after dilution
Weighted average of the number of outstanding shares during the period plus a weighted number of shares that would be added if all dilutive potential shares were converted to shares. Only the option programs whose issue price is less than the average market price of the shares during the period can lead to a dilutive effect.
Earnings per share
Profit for the year divided by the average number of outstanding shares.
Earnings per share after dilution
Profit for the year in relation to the number of shares outstanding after dilution.
Equity per share
Equity divided by the number of outstanding shares adjusted for non-registered issues.
Shareholders' equity per share after dilution
Shareholders' equity divided by the number of outstanding shares after dilution.
Number of employees at close of period
The number of employees on the date of the last salary payment for the period.
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Reconciliation of alternative performance measures
| SEK million | Q2 | Jan-June | Full year | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022 | ||
| Gross profit | A | 163.3 | 88.4 | 357.9 | 170.4 | 449.7 |
| Operating expenses | B | 117.9 | 96.7 | 228.6 | 182.5 | 384.5 |
| EBIT (Operating profit) | A-B | 45.4 | -8.3 | 129.3 | -12.1 | 65.2 |
| SEK million | Q2 | Jan-June | Full year | |||
| --- | --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | 2023 | 2022 | 2022 | ||
| EBIT (Operating profit) | A | 45.4 | -8.3 | 129.3 | -12.1 | 65.2 |
| Depreciation/amortization and impairment, intangible assets and property, plant and equipment | B | 15.1 | 11.6 | 27.8 | 23.3 | 47.8 |
| EBITDA | A+B | 60.5 | 3.4 | 157.1 | 11.2 | 113.0 |
| SEK million | June 30, 2022 | June 30, 2022 | December 31, 2022 | |||
| --- | --- | --- | --- | --- | ||
| 672.0 | 432.9 | 510.0 | ||||
| Shareholders' equity | A | 45,590 | 45,049 | 45,049 | ||
| Equity per share, SEK | A/B | 14.74 | 9.61 | 11.32 | ||
| SEK million | June 30, 2022 | June 30, 2022 | December 31, 2022 | |||
| --- | --- | --- | --- | --- | ||
| Shareholders' equity | A | 672.0 | 432.9 | 510.0 | ||
| Number of shares after dilution, thousands, SEK million | B | 47,003 | 45,049 | 45,049 | ||
| Equity per share after dilution, SEK | A/B | 14.30 | 9.61 | 11.32 |
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Overview – last nine quarters
| 2021 | 2022 | 2023 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
| Revenue | 154.3 | 142.7 | 152.2 | 137.4 | 153.7 | 195.1 | 289.2 | 311.3 | 269.8 |
| Cost of goods sold | -64.8 | -60.3 | -66.4 | -55.4 | -65.3 | -81.8 | -123.2 | -116.8 | -106.5 |
| Gross profit | 89.6 | 82.4 | 85.8 | 82.1 | 88.4 | 113.3 | 166.0 | 194.6 | 163.3 |
| Operating expenses | -75.4 | -85.7 | -84.5 | -85.9 | -96.7 | -95.8 | -106.2 | -110.7 | -117.9 |
| Operating profit | 14.2 | -3.4 | 1.3 | -3.8 | -8.3 | 17.5 | 59.8 | 83.9 | 45.4 |
| Net financial items | -1.1 | 1.0 | 0.8 | -0.2 | 0.3 | 1.5 | -4.3 | -0.2 | -7.9 |
| Profit/loss before tax | 13.0 | -2.3 | 2.1 | -4.0 | -8.0 | 19.0 | 55.5 | 83.6 | 37.6 |
| Income tax on profit for the period | -3.7 | -0.5 | -0.9 | -0.3 | 0.6 | -5.6 | -12.8 | -23.6 | -10.3 |
| Profit/loss for the period | 9.4 | -2.8 | 1.3 | -4.3 | -7.3 | 13.5 | 42.7 | 60.0 | 27.3 |
| Cash flow from operating activities | 25.4 | 8.5 | 23.1 | 3.3 | 8.1 | 4.1 | 26,1 | 80.2 | 85.9 |
| Order intake | 167.3 | 164.9 | 160.0 | 396.8 | 157.7 | 291.0 | 296.4 | 315.2 | 402.0 |
| Order book | 191.7 | 210.4 | 224.7 | 481.7 | 481.7 | 615.5 | 624.7 | 626.7 | 790.3 |
| Gross margin, % | 58.0 | 57.7 | 56.4 | 59.7 | 57.5 | 58.1 | 57.4 | 62.5 | 60.5 |
| Operating margin, % | 9.2 | -2.4 | 0.9 | -2.8 | -5.4 | 9.0 | 20.7 | 26.9 | 16.8 |
| Profit margin, % | 6.1 | -2.0 | 0.8 | -3.1 | -4.8 | 6.9 | 14.8 | 19.3 | 10.1 |
| Equity/assets ratio, % | 59 | 58 | 61 | 63 | 63 | 61 | 64 | 65 | 71 |
| Earnings per share for the period, SEK* | 0.21 | -0.06 | 0.03 | -0.10 | -0.16 | 0.30 | 0.95 | 1.33 | 0.60 |
| Equity per share, SEK* | 9.08 | 9.13 | 9.37 | 9.38 | 9.61 | 10.24 | 11.32 | 12.86 | 14.74 |
- Before dilution
INTERIM REPORT JANUARY-JUNE 2023
INVISIO®
Invitation to conference call July 21, at 10:00
INVISIO invites the media, investors and analysts to a conference call on Friday, July 21, at 10:00 CEST, when the President and CEO Lars Højgård Hansen will present INVISIO's report for the first half of 2023. The conference call will be held in English, starting with a brief presentation followed by a question-and-answer session.
A link will be published on INVISIO's website to a recording and the presentation shown, about an hour after the end of the conference call.
Registration
Pre-registration is required in order to participate and put questions at the conference call. After registration a telephone number and conference ID will be provided. Please complete registration 5-10 minutes prior to the scheduled starting time to facilitate a timely start to the conference call.
Registration link
https://events.inderes.se/teleconference/?id=100368
Audiocast
To follow the presentation online, please use the link below: https://invisio.videosync.fi/2023-07-21-q2-2023
Financial calendar
Interim report January–September 2023 October 25, 2023
Year-end report 2023 February 13, 2024
Interim reports and annual reports are available at www.invisio.com.
Public disclosure
This information is information that INVISIO AB (publ) is obliged to disclose under the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the President/CEO, on July 21, 2023, at 08:30 CEST.
For further information, please contact
Lars Højgård Hansen, CEO
+45 5372 7722 | [email protected]
Thomas Larsson, CFO
+45 5372 7735 | [email protected]
Michael Peterson, Director Investor Relations and Corporate Communications
+45 5372 7733 | [email protected]
Postal address
INVISIO AB | PO Box 151 | SE 201 21 Malmö
INVISIO AB is a Swedish limited company listed on Nasdaq Stockholm. The company's share is traded under the ticker name IVSO and the ISIN code is SE0001200015.
You can find INVISIO at www.invisio.com
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in YouTube
INTERIM REPORT JANUARY-JUNE 2023