Quarterly Report • May 5, 2021
Quarterly Report
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During the first quarter, operating profit and operating margin continued to improve. Sales were in line with the previous year, adjusted for currency. The two largest business areas, Ventilation Systems and Profile Systems, showed organic sales growth. It is a sign of strength considering that the first quarter of last year was relatively unaffected by the pandemic. Cash flow from operating activities continues to improve.
| Key Figures | 2021 Jan-Mar |
2020 Jan-Mar |
Change, % |
2020 Jan-Dec |
|---|---|---|---|---|
| Net sales, SEK m | 2,248 | 2,332 | -4 | 9,166 |
| Adjusted1) operating profit, SEK m | 193 | 184 | 5 | 916 |
| Operating profit, SEK m | 193 | 184 | 5 | 846 |
| Adjusted1) operating margin, % | 8.6 | 7.9 | - | 10.0 |
| Operating margin, % | 8.6 | 7.9 | - | 9.2 |
| Profit for the period, SEK m | 140 | 136 | 3 | 596 |
| Earnings per share, before and after dilution, SEK | 1.83 | 1.78 | 3 | 7.80 |
| Cash flow from operating activities, SEK m | 60 | 26 | 131 | 1,129 |
1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs. See 'Reconciliations' page 19.
Photo: Mette Ottosson
Lindab starts the year in a strong way. The positive trends from the end of previous year continued into the beginning of 2021. The two largest business areas, Ventilation Systems and Profile Systems, showed organic growth. The operating margin continued to improve compared with the corresponding period last year and was record high for a first quarter.
During the first quarter of this year, construction activity continued to recover, especially in Western and Southern Europe. Lindab has the Nordic region as its largest market and construction activity in this region has been stable for a long time. In Eastern Europe, on the other hand, construction activity is still significantly affected by the pandemic. During the first quarter of last year, Lindab's sales were relatively unaffected. It is therefore a sign of strength that Lindab is showing organic growth in two of three business areas compared with the first quarter last year.
One of Lindab's major competitive advantages is high availability and delivery performance. It has been even more important in these uncertain times. Our robust supply chain has helped us keep our promises to customers even when countries shut down.
The operating margin was record high for the first quarter. During the last twelve months, the adjusted operating margin was 10.2 percent. Good cost control with decentralised decision-making is one important reason.
During the first quarter, Lindab did not complete any acquisitions. There are still several discussions ongoing and the strategy of acquiring profitable, well-managed companies remains unchanged. As the companies have good profitability and skilled management at the time of the acquisition, they can quickly contribute to Lindab. In the first quarter, the acquisitions made during the previous year had a positive impact on earnings.
At the end of 2020, we intensified our sustainability work. Under the concept "Lindab - For a better climate", we focus on activities aiming at creating healthy indoor environments, as we spend as much as 90 percent of our time indoors. "For a better climate" is also about reducing the environmental impact from customers by offering smart products of the highest quality. Buildings account for a large part of Europe's CO2 emissions and we can have a direct impact by offering energy-efficient solutions that, for example, adapt the ventilation to how the premises are used. In addition, we must conduct sustainable business ourselves, in terms of climate impact and working environment as two examples. In our internal sustainability work, the ongoing investment program plays a major role. It is the largest investment program in Lindab's history. We can already see effects in the form of safer and more efficient production environments. During the first quarter, we started a couple of large investment projects where we expand and modernise existing production and logistics in our home area on the Bjäre Peninsula in Skåne, Sweden.
"The operating margin was record high for the first quarter. Good cost control with decentralised decision-making is one important reason."
For the remainder of 2021, we believe in increased construction activity as societies reopen. High steel prices will bring challenges, but Lindab's organisation has routines for dealing with ups and downs in commodity prices. We have been quick to adjust prices towards customers and we have long-term purchasing agreements, creating strategic room for manoeuvre.
The long-term demand for Lindab's ventilation products benefits from an increased interest in solutions that create healthy indoor environments and reduce energy consumption. Thanks to Lindab's product portfolio and strong presence throughout Europe, we are well positioned to continue to develop the business in a positive direction in both the short and long term.
Grevie, May 2021
Ola Ringdahl President and CEO
Lindab has the construction industry as its primary target segment and sales are concentrated in Europe with less than two percent of sales outside of Europe. Sales are affected by activity in the European construction industry, with emphasis on the countries in Northern Europe.
Lindab's goal is to keep factories, distribution centres and sales channels open as far as possible. Lindab customers value high availability and delivery precision. By ensuring that critical deliveries can be made, Lindab strengthens its competitiveness and increases customer loyalty. During the first quarter, operations were open in all countries, with reduced opening hours and staffing in the countries with the lowest construction activity.
Lindab has good possibilities to secure deliveries to customers thanks to over 30 production facilities around Europe. Local stock levels have increased to further reduce the risks. Lindab has limited dependency on raw materials and components from countries outside Europe, which reduces the risk of transport disruptions. Alternative suppliers have been used when deemed necessary and this has thus reduced the dependency on individual suppliers.
Lindab's facilities, have clear routines to prevent the spread of infections and to increase the safety of employees. For confirmed covid-19 cases among Lindab's employees, measures have been taken to prevent further spread of the infection.
Protective equipment has been put on stock to secure future availability.
Lindab's assessment is that covid-19 will affect sales negatively also during the coming quarters. Construction projects are delayed or postponed, and it is unclear how long and to what extent restrictions will last.
Lindab has in 2020 reduced the costs to adapt the business to a lower demand. During the first quarter 2021, support measures and short-term work were utilised to a limited extent in a few countries.
Lindab has a strong financial position. Efficiency measures have resulted in a solid balance sheet and a strong profit. The development of the pandemic is closely monitored and Lindab continuously evaluates different scenarios to be able to adapt operations to prevailing circumstances.
1) Growth excluding currency effects.
2) Rolling 12 months (R 12M).
3) Excluding the effect of implemented new accounting standard IFRS 16 Leases, operating margin amounted to 9.9 percent in 2021, 9.7 percent in 2020 and 9.0
percent in 2019. 4) Excluding the effect of implemented new accounting standard IFRS 16 Leases, net debt to EBITDA amounted to 0.7 in 2021, 0.8 in 2020 and 1.0 in 2019.
Net sales during the quarter amounted to SEK 2,248 m (2,332), a decrease of 4 percent. Organic growth was unchanged at 0 percent while currency effects had a negative impact on growth of 5 percent. Structural changes, related to Lindab's completed acquisitions and divestments, contributed positively by 1 percent.
The uncertainty related to covid-19 has continued to impact the quarter. The comparison period was affected to a lesser extent by restrictions. During the quarter, the construction activity continued to recover in most of the European markets, as restrictions have started to ease. Covid-19 has also highlighted the importance of healthy indoor climate, which is expected to increase the longterm demand for Lindab's products.
Organic sales growth in Ventilation Systems was positive, primarily due to continued good sales recovery in Western Europe. Profile Systems reported strong organic growth related to increased sales of industrial projects, but also increased sales of rainwater products and building components. Building Systems' sales decreased during the quarter. That is mainly explained by a general market slowdown related to covid-19, where several major investment decisions have been postponed.
The price of steel, which is Lindab's most important raw material, has risen sharply as a result of a general unbalance between supply and demand, caused by the pandemic. During the quarter, price increases to customers were announced to compensate for the historically high raw material prices.
Adjusted operating profit for the quarter increased to SEK 193 m (184). No one-off items or restructuring costs were reported during the quarter or in the corresponding period previous year. Adjusted operating margin increased to 8.6 percent (7.9).
Ventilation Systems' adjusted operating profit increased to SEK 163 m (151) and Profile Systems increased to SEK 58 m (44). The adjusted operating profit for Building Systems amounted to SEK -15 m (2).
The Group's improved adjusted operating profit is mainly explained by structural changes, as a result of completed acquisitions and divestments, but also by organic sales growth in Ventilation Systems and Profile Systems.
Profit for the quarter increased to SEK 140 m (136) and earnings per share increased to SEK 1.83 (1.78).
Lindab's business is affected by seasonal variations in the construction industry, and the highest proportion of net sales is normally seen during the second half of the year. The largest seasonal variations can be found in the segments Profile Systems and Building Systems. Ventilation products are mainly installed indoors which is why the Ventilation Systems segment is less dependent on season or weather conditions.
There is normally a deliberate stock build-up of mainly finished goods during the first six months, which gradually becomes a stock reduction during the second half of the year, as a result of increased activity within the construction market.
Depreciation and amortisation for the quarter amounted to SEK 102 m (98), of which SEK 8 m (7) was related to intangible assets and SEK 57 m (57) was related to the right of use assets attributable to rental and leasing agreements. Impairment losses in the period amounted to SEK 2 m (-).
Earnings before tax increased to SEK 183 m (176) in the quarter and tax on profit amounted to SEK 43 m (40). The effective tax rate amounted to 23 percent (23). The average tax rate was 19 percent (19). The higher effective tax rate compared to the average tax rate was mainly explained by the fact that Lindab was not able to fully recognise the carry-forward tax losses generated in the quarter in order to reduce the total tax on profit. Also the effect from non-deductible costs/non-taxable income has to some extent contributed to the slightly higher effective tax rate compared with the average tax rate.
Cash flow from operating activities increased to SEK 60 m (26). The improvement was primarily related to the quarter's change in working capital, which amounted to SEK -156 m (-201). The development of working capital was mainly related to an improved liquidity effect from accounts payable and cash advances from customers within Building Systems. The positive effects were to some extent offset by increased capital tied up in stock and operating receivables compared to the same period last year. Operating profit for the quarter increased to SEK 193 m (184) and cash flow before change in working capital amounted to SEK 216 m (227).
Cash flow from financing activities reported a positive cash flow of SEK 20 m (33) for the quarter. This included a cash outflow impact of SEK -57 m (-57) related to lease liabilities. Other changes within the financing activities were related to changes in borrowings and the utilisation of credit limits.
Cash flow from investing activities is explained under the headings 'Investments'.
The quarter's investments in intangible assets and tangible fixed assets amounted to SEK 107 m (133), of which SEK 3 m (7) was related to investments in intangible assets. The investments in tangible fixed assets is mainly a part of the Group's investment program for efficiency and capacity increases in production facilities.
Cash flow from investing activities amounted to net SEK -105 m (-133). The cash flow included a positive effect from the divestment of tangible fixed assets amounting to SEK 2 m (0).
There have been no acquisitions or divestments during the current quarter or the corresponding period previous year.
Net debt amounted to SEK 1,759 m (2,093) on 31 March 2021. Currency effects increased net debt by SEK 24 m (143) during the quarter.
The equity/assets ratio was 54 percent (52) and the net debt/ equity ratio was 0.3 (0.4). Financial items for the quarter amounted to SEK -10 m (-8). The change is mainly explained by lower interest income.
The current credit limits of SEK 1,400 m with Nordea and Danske Bank and EUR 50 m from Raiffeisen Bank International are valid until third quarter 2022. The agreements contain covenants, which are monitored quarterly. Lindab fulfilled all the conditions as per 31 March 2021.
No significant changes have been made in pledged collateral and contingent liabilities during the first quarter 2021.
Lindab International AB (publ), corporate identification number 556606-5446, is a registered limited liability company with its domicile in Båstad, Sweden. Lindab's shares are listed on Nasdaq Stockholm, Mid Cap.
Net sales for the quarter amounted to SEK 1 m (1). Loss for the period amounted to SEK 1 m (1).
There have been no significant changes in relation to what was stated by Lindab in its Annual Report for 2020 under Risks and Risk Management (pages 62-65).
The number of employees at the end of the quarter, calculated as full-time equivalent employees, was 5,098 (5,162). Adjusted for acquisitions and divestment, the net decrease was 25 employees compared with the same period previous year.
The Board has decided that the Annual General Meeting will be held on May 5, 2021. Due to covid-19 the Annual General Meeting will be held without any physical presence by the shareholders and postal voting will take place before the Annual General Meeting. Notice to the meeting has been given via press release.
Lindab's Board of Directors proposes that the Annual General Meeting on May 5, 2021 approves a dividend of SEK 3.40 per share. This is in accordance with the dividend policy of a dividend of minimum 40 percent of Lindab's net profit. The proposed dividend corresponds to a total transfer of SEK 260 m. The dividend is proposed to be split and paid out in two equal portions of SEK 1.70 per share and occasion. The preliminary record dates are May 7, 2021 and November 5, 2021 with payment expected on May 12, 2021 and on November 10, 2021, respectively.
In March, Jonas Arkestad was appointed new CFO at Lindab. He will start his new position no later than September 2021.
During the quarter the trend of increased steel prices has continued. Lindab strives to adjusts its prices to compensate for this.
There are no other significant events during the reporting period to report.
There are no other significant events after the reporting period to report.
Unless otherwise indicated in this interim report, all statements refer to the Group. Figures in parentheses indicate the result for the corresponding period of the previous year. Unless otherwise indicated, amounts are in SEK m.
The report has not been subject to audit.
This is a translation of the Swedish original report. In case of differences between the English translation and the Swedish original, the Swedish text shall prevail.
| Key performance indicators | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|---|---|---|---|
| Net sales, SEK m | 1,469 | 1,510 | 5,654 |
| Net sales growth, % | -3 | 0 | -6 |
| Adjusted1) operating profit, SEK m | 163 | 151 | 586 |
| Adjusted1) operating margin, % | 11.1 | 10.0 | 10.4 |
| Number of employees by end of period | 3,505 | 3,543 | 3,476 |
1) No one-off items or restructuring costs have been reported in the first quarter 2021 or 2020. For the period January-December 2020, adjusted operating profit is excluding one-off items and restructuring costs of SEK -70 m. See 'Reconciliations' page 19.
Net sales during the quarter for Ventilation Systems amounted to SEK 1,469 m (1,510), a decrease of 3 percent. Organic growth was 1 percent, while currency effects had a negative impact on growth of 5 percent. Structural changes, related to Lindab's completed acquisitions and divestments, contributed positively by 1 percent.
The organic sales growth in Ventilation Systems was positive during the quarter, despite a number of markets being affected by the uncertainty related to covid-19. During the quarter, sales continued to recover as restrictions have been eased. This is particularly evident in Western Europe, which reported good organic growth. Both the Nordic region and the CEE1)/CIS2) region have had stable sales volumes and the organic sales growth only declined slightly.
Western Europe reported a clear continued sales recovery during the quarter, with good growth in most markets. Sales growth was particularly strong in the UK and France, which both had extensive restrictions during the latter part of March previous year. The UK was also positively affected during the quarter by the country's effective vaccination campaign, compared with other markets in Europe. Sales in the Nordic region decreased, except in Norway, which reported good organic growth. Lindabs operations in the Nordic countries have generally been the first to announce price increases to customers to compensate for the historically high raw material prices. This has affected the sales volumes during the quarter, where profitability was prioritised before volume. The
sales development in the CEE/CIS region continued to vary, with positive growth in the region's two largest markets, Poland and Hungary. The slightly smaller markets Czech Republic and Estonia had negative sales development, as a result of covid-19.
Ventilation Systems' adjusted operating profit during the quarter increased to SEK 163 m (151). Adjusted operating margin increased to 11.1 percent (10.0). The improved adjusted operating profit, which is the highest ever for a first quarter, is mainly explained by structural changes, as a result of completed acquisitions and divestments. Operating profit was also positively affected by organic sales growth and a stronger gross margin.
During the quarter, Lindab began deliveries to one of the most important public construction projects in Italy, the Fréjus tunnel. The tunnel will connect Italy with France with a new road tunnel under the Alps. Lindab will, among other things, supply duct systems, fire dampers and accessories. The project has an order value of approximately SEK 8 m.
1) CEE - Central and Eastern Europe 2) CIS - Commonwealth of Independent States
| Key performance indicators | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|---|---|---|---|
| Net sales, SEK m | 630 | 587 | 2,566 |
| Net sales growth, % | 7 | 12 | 3 |
| Adjusted1) operating profit, SEK m | 58 | 44 | 318 |
| Adjusted1) operating margin, % | 9.2 | 7.5 | 12.4 |
| Number of employees by end of period | 857 | 857 | 860 |
1) No one-off items or restructuring costs have been reported in 2021 or 2020.
Net sales for Profile Systems increased by 7 percent to SEK 630 m (587) during the quarter. Organic growth was 10 percent, while currency effects had a negative impact of 3 percent.
Sales within Profile Systems increased during the quarter, with good organic growth in most markets. The first quarter of the year is usually the most volatile in terms of sales volumes and profitability, where current weather conditions in combination with the delivery of larger individual industrial projects have a major impact on the segment.
The largest region in terms of sales, the Nordic region, reported good organic growth in the three largest markets, Sweden, Norway and Denmark. Particularly good growth was reported on products that are generally installed outdoors, such as rainwater products and building components. During the quarter, significant deliveries were also made to a major industrial project on the Swedish market. This has resulted in sales of larger individual industrial buildings being on a par with the previous year's high levels. Sweden has also benefited from a "stay at home" effect, driven by, among other things, increased demand from the consumer market. The segment as a whole is significantly affected by the development in the Swedish market, as it accounts for about half of Profile Systems' sales.
The sales development in the CEE/CIS region increased during the quarter due to good demand in these markets. Particularly strong organic growth was reported in Hungary and Romania.
Western Europe reported continued positive sales growth, but the impact on the business area was marginal as the region represents only a small part of Profile Systems' total sales.
Profile Systems' adjusted operating profit during the quarter increased to SEK 58 m (44). Adjusted operating margin increased to 9.2 percent (7.5). The improved adjusted operating profit, despite high comparative figures, is mainly explained by strong organic sales growth and lower operating costs.
During the quarter, the Swedish steel company, SSAB, appointed Lindab as GreenCoat® Partner, which means that Lindab is certified to use and sell GreenCoat®, a trademark registered by SSAB. GreenCoat® from SSAB offers sustainable steel solutions for roofs, facades and water drainage. SSAB selects the companies that meet their criterias to become a partner, where an active sustainability work is an important factor.
| Key performance indicators | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|---|---|---|---|
| Net sales, SEK m | 149 | 235 | 946 |
| Net sales growth, % | -37 | -15 | -30 |
| Adjusted1) operating profit, SEK m | -15 | 2 | 56 |
| Adjusted1) operating margin, % | -10.1 | 0.9 | 5.9 |
| Number of employees by end of period | 685 | 715 | 692 |
1) No one-off items or restructuring costs have been reported in 2021 or 2020.
Net sales during the quarter for Building Systems amounted to SEK 149 m (235), a decrease of 37 percent. Sales decreased organically by 28 percent and currency effects had a negative impact of 9 percent, mainly related to a weaker Russian rouble.
Sales decreased in most markets during the quarter due to the general slowdown caused by covid-19, where several major investment decisions have been postponed.
In Western Europe, sales as a whole decreased due to lower sales especially in Germany, France, Luxembourg and Austria. Italy, on the other hand, reported strong growth. The organic sales development in CEE was strong, which is mainly explained by increased sales in Romania and Lithuania, while sales to the region's largest market, Poland, decreased. Sales to CIS decreased due to lower activity in both Belarus and Russia.
The order intake decreased during the quarter. The order backlog at the end of the quarter was lower than the corresponding period previous year, primarily for CEE and CIS.
Building Systems' adjusted operating profit amounted to SEK -15 m (2) during the quarter. Adjusted operating margin was -10.1 percent (0.9).
The adjusted operating profit was affected by a clearly reduced sales volume and thereby low capacity utilisation. This was partly offset by a stronger gross margin.
During the quarter, Building Systems signed agreements on two major orders, each worth more than SEK 10 m; a production building in Belarus and a parking garage in Belgium.
During the quarter, Building Systems launched a new concept for the architectural finish of industrial buildings, TopFitTM. TopFitTM technology provides innovative building components that are easy to install and at the same time provide good performance. Installation is simpler and more flexible and therefore faster.
| SEK m | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|
|---|---|---|---|---|
| Net sales | 2,248 | 2,332 | 9,166 | |
| Change | -84 | 17 | -706 | |
| Change, % | -4 | 1 | -7 | |
| Of which | ||||
| Organic, % | 0 | -1 | -6 | |
| Acquisitions/divestments, % | 1 | 0 | 1 | |
| Currency effects, % | -5 | 2 | -2 |
| 2021 | 2020 | 2020 | ||||
|---|---|---|---|---|---|---|
| SEK m | Jan-Mar | % | Jan-Mar | % | Jan-Dec | % |
| Nordic region | 1,151 | 51 | 1,093 | 47 | 4,403 | 48 |
| Western Europe | 721 | 32 | 780 | 33 | 2,973 | 32 |
| CEE/CIS | 341 | 15 | 415 | 18 | 1,642 | 18 |
| Other markets | 35 | 2 | 44 | 2 | 148 | 2 |
| Total | 2,248 | 100 | 2,332 | 100 | 9,166 | 100 |
| SEK m | 2021 Jan-Mar |
% | 2020 Jan-Mar |
% | 2020 Jan-Dec |
% |
|---|---|---|---|---|---|---|
| Ventilation Systems | 1,469 | 65 | 1,510 | 65 | 5,654 | 62 |
| Profile Systems | 630 | 28 | 587 | 25 | 2,566 | 28 |
| Building Systems | 149 | 7 | 235 | 10 | 946 | 10 |
| Total | 2,248 | 100 | 2,332 | 100 | 9,166 | 100 |
| Gross internal sales all segments | 9 | 10 | 43 |
| SEK m | 2021 Jan-Mar |
% | 2020 Jan-Mar |
% | 2020 Jan-Dec |
% |
|---|---|---|---|---|---|---|
| Ventilation Systems | 163 | 11.1 | 151 | 10.0 | 586 | 10.4 |
| Profile Systems | 58 | 9.2 | 44 | 7.5 | 318 | 12.4 |
| Building Systems | -15 | -10.1 | 2 | 0.9 | 56 | 5.9 |
| Other operations | -13 | - | -13 | - | -44 | - |
| Adjusted operating profit | 193 | 8.6 | 184 | 7.9 | 916 | 10.0 |
| One-off items and restructuring costs1) | - | - | - | - | -70 | - |
| Operating profit | 193 | 8.6 | 184 | 7.9 | 846 | 9.2 |
| Net financial items | -10 | - | -8 | - | -35 | - |
| Earnings before tax | 183 | 8.1 | 176 | 7.5 | 811 | 8.8 |
1) One-off items and restructuring costs are described in 'Reconciliations' page 19.
| 2021 2020 |
2020 | |||||
|---|---|---|---|---|---|---|
| Jan-Mar | % | Jan-Mar | % | Jan-Dec | % | |
| Ventilation Systems | 3,505 | 69 | 3,543 | 69 | 3,476 | 68 |
| Profile Systems | 857 | 17 | 857 | 16 | 860 | 17 |
| Building Systems | 685 | 13 | 715 | 14 | 692 | 14 |
| Other operations | 51 | 1 | 47 | 1 | 50 | 1 |
| Total | 5,098 | 100 | 5,162 | 100 | 5,078 | 100 |
| SEK m | 2021 Jan-Mar |
2020 Jan-Mar |
R 12M 2020 Apr 2021 Mar |
R 12M 2019 Apr 2020 Mar |
2020 Jan-Dec |
|---|---|---|---|---|---|
| Net sales | 2,248 | 2,332 | 9,082 | 9,889 | 9,166 |
| Cost of goods sold | -1,609 | -1,679 | -6,473 | -7,140 | -6,543 |
| Gross profit | 639 | 653 | 2,609 | 2,749 | 2,623 |
| Other operating income | 14 | 22 | 80 | 68 | 88 |
| Selling expenses | -292 | -302 | -1,092 | -1,201 | -1,102 |
| Administrative expenses | -140 | -139 | -519 | -554 | -518 |
| R&D expenses | -16 | -16 | -64 | -65 | -64 |
| Other operating expenses | -12 | -34 | -159 | -90 | -181 |
| Total operating expenses | -446 | -469 | -1,754 | -1,842 | -1,777 |
| Operating profit1) | 193 | 184 | 855 | 907 | 846 |
| Interest income | 2 | 6 | 10 | 24 | 14 |
| Interest expenses | -11 | -12 | -44 | -50 | -45 |
| Other financial income and expenses | -1 | -2 | -3 | -6 | -4 |
| Financial items | -10 | -8 | -37 | -32 | -35 |
| Earnings before tax | 183 | 176 | 818 | 875 | 811 |
| Tax on profit for the period | -43 | -40 | -218 | -203 | -215 |
| Profit for the period | 140 | 136 | 600 | 672 | 596 |
| –attributable to the Parent company's shareholders | 140 | 136 | 600 | 672 | 596 |
| –attributable to non-controlling interests | 0 | - | 0 | - | 0 |
| Earnings per share, SEK2) | 1.83 | 1.78 | 7.85 | 8.80 | 7.80 |
1) One-off items and restructuring costs, which are included in operating profit, are described in 'Reconciliations' on page 19.
2) Based on the number of outstanding shares, i.e. excluding treasury shares. Earnings per share is before and after dilution.
| SEK m | 2021 Jan-Mar |
2020 Jan-Mar |
R 12M 2020 Apr 2021 Mar |
R 12M 2019 Apr 2020 Mar |
2020 Jan-Dec |
|---|---|---|---|---|---|
| Profit for the period | 140 | 136 | 600 | 672 | 596 |
| Items that will not be reclassified to the statement of profit or loss | |||||
| Actuarial gains/losses, defined benefit plans | 11 | -5 | 21 | -56 | 5 |
| Deferred tax attributable to defined benefit plans | -2 | 1 | -4 | 11 | -1 |
| Total | 9 | -4 | 17 | -45 | 4 |
| Items that will later be reclassified to the statement of profit or loss | |||||
| Translation differences, foreign operations | 113 | 90 | -333 | 119 | -356 |
| Hedges of net investments | -21 | -85 | 111 | -92 | 47 |
| Tax attributable to hedges of net investments | 4 | 18 | -24 | 19 | -10 |
| Total | 96 | 23 | -246 | 46 | -319 |
| Other comprehensive income, net of tax | 105 | 19 | -229 | 1 | -315 |
| Total comprehensive income | 245 | 155 | 371 | 673 | 281 |
| –attributable to the Parent company's shareholders | 245 | 155 | 371 | 673 | 281 |
| –attributable to non-controlling interests | 0 | - | 0 | - | 0 |
| SEK m | 2021 Jan-Mar |
2020 Jan-Mar |
R 12M 2020 Apr 2021 Mar |
R 12M 2019 Apr 2020 Mar |
2020 Jan-Dec |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Operating profit | 193 | 184 | 855 | 907 | 846 |
| Reversal of depreciation/amortisation and impairment losses | 104 | 98 | 444 | 403 | 438 |
| Reversal of capital gains (-)/losses (+) reported in operating profit | -1 | 0 | -4 | 2 | -3 |
| Provisions, not affecting cash flow | -2 | -3 | 37 | -3 | 36 |
| Adjustment for other items not affecting cash flow | -2 | -1 | -5 | -6 | -4 |
| Total | 292 | 278 | 1,327 | 1,303 | 1,313 |
| Interest received | 2 | 5 | 10 | 23 | 13 |
| Interest paid | -9 | -12 | -44 | -48 | -47 |
| Tax paid | -69 | -44 | -211 | -170 | -186 |
| Cash flow from operating activities before change in working capital | 216 | 227 | 1,082 | 1,108 | 1,093 |
| Change in working capital | |||||
| Stock (increase -/decrease +) | -131 | -84 | -44 | -45 | 3 |
| Operating receivables (increase -/decrease +) | -337 | -258 | -35 | -21 | 44 |
| Operating liabilities (increase +/decrease -) | 312 | 141 | 160 | -78 | -11 |
| Total change in working capital | -156 | -201 | 81 | -144 | 36 |
| Cash flow from operating activities | 60 | 26 | 1,163 | 964 | 1,129 |
| INVESTING ACTIVITIES | |||||
| Acquisition of Group-/associated companies | - | - | -310 | -36 | -310 |
| Divestment of Group companies | - | - | 67 | 2 | 67 |
| Investments in intangible assets | -3 | -7 | -23 | -18 | -27 |
| Investments in tangible fixed assets | -104 | -126 | -376 | -348 | -398 |
| Change in financial fixed assets | - | 0 | 0 | 0 | 0 |
| Disposal of intangible assets | - | - | - | - | - |
| Disposal of tangible fixed assets | 2 | 0 | 7 | 11 | 5 |
| Cash flow from investing activities | -105 | -133 | -635 | -389 | -663 |
| FINANCING ACTIVITIES | |||||
| Proceeds from borrowings | 77 | 90 | 77 | 227 | 90 |
| Repayment of borrowings | - | - | -133 | -374 | -133 |
| Repayment of leasing-related liabilities | -57 | -57 | -222 | -218 | -222 |
| Issue/repurchase of share options/shares | - | - | 4 | - | 4 |
| Dividends to shareholders | - | - | -134 | -134 | -134 |
| Cash flow from financing activities | 20 | 33 | -408 | -499 | -395 |
| Cash flow for the period | -25 | -74 | 120 | 76 | 71 |
| Cash and cash equivalents at start of the period | 541 | 536 | 450 | 380 | 536 |
| Effect of exchange rate changes on cash and cash equivalents | 15 | -12 | -39 | -6 | -66 |
| Cash and cash equivalents at end of the period | 531 | 450 | 531 | 450 | 541 |
| SEK m | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 3,299 | 3,312 | 3,239 |
| Other intangible assets | 110 | 103 | 112 |
| Tangible fixed assets | 1,601 | 1,496 | 1,513 |
| Right of use assets | 961 | 985 | 953 |
| Financial interest-bearing fixed assets | 30 | 34 | 30 |
| Other financial fixed assets | 26 | 8 | 26 |
| Deferred tax assets | 91 | 117 | 76 |
| Total non-current assets | 6,118 | 6,055 | 5,949 |
| Current assets | |||
| Stock | 1,578 | 1,574 | 1,425 |
| Accounts receivable | 1,575 | 1,584 | 1,278 |
| Other current assets | 263 | 285 | 182 |
| Other interest-bearing receivables | 7 | 12 | 30 |
| Cash and cash equivalents | 531 | 450 | 541 |
| Total current assets | 3,954 | 3,905 | 3,456 |
| TOTAL ASSETS | 10,072 | 9,960 | 9,405 |
| SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity attributable to Parent company shareholders |
5,423 | 5,182 | 5,178 |
| Non-controlling interest | 0 | - | 0 |
| Total shareholders' equity | 5,423 | 5,182 | 5,178 |
| Non-current liabilities | |||
| Interest-bearing provisions for pensions and similar obligations | 273 | 295 | 279 |
| Liabilities to credit institutions | 1,042 | 1,117 | 976 |
| Lease liabilities | 725 | 779 | 745 |
| Deferred tax liabilities | 111 | 109 | 92 |
| Provisions | 22 | 22 | 24 |
| Other non-current liabilities | 8 | 9 | 8 |
| Total non-current liabilities | 2,181 | 2,331 | 2,124 |
| Current liabilities | |||
| Other interest-bearing liabilities | 25 | 161 | 9 |
| Lease liabilities | 262 | 237 | 232 |
| Provisions | 24 | 23 | 27 |
| Accounts payable | 1,025 | 936 | 712 |
| Other current liabilities | 1,132 | 1,090 | 1,123 |
| Total current liabilities | 2,468 | 2,447 | 2,103 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 10,072 | 9,960 | 9,405 |
| SEK m | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 | |||
|---|---|---|---|---|---|---|
| Disclosures regarding the fair value by class | Carrying amount |
Fair value |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
| Financial assets | ||||||
| Derivative receivables | 5 | 5 | 11 | 11 | 30 | 30 |
| Financial liabilities | ||||||
| Liabilities to credit institutions | 1,047 | 1,048 | 1,120 | 1,122 | 981 | 982 |
| Derivative liabilities | 7 | 7 | 39 | 39 | 4 | 4 |
Derivatives relate to forward exchange contracts which are valued at fair value by discounting the difference between the contracted forward rate and the forward rate that can be subscribed for on the balance sheet date for the remaining contract term. The fair value of interest-bearing liabilities to credit institutions is provided for the purpose of disclosure and is calculated by discounting the future cash flows of principal and interest payments, discounted at current market interest rate.
The derivative assets, derivative liabilities and interest-bearing liabilities to credit institutions that exist can all be found at Level 2 of the valuation hierarchy.
For other financial assets and liabilities, the carrying amount is deemed to be a reasonable approximation of fair value. The Group holdings of unlisted shares, the fair value of which cannot be estimated reliably, are recognised at acquisition cost. The carrying amount is SEK 4 m (4).
| Shareholders' equity attributable to Parent company | |
|---|---|
| shareholders |
| Foreign | Profit brought |
||||||
|---|---|---|---|---|---|---|---|
| Other | currency | forward | Non | Total | |||
| SEK m | Share capital |
contributed capital |
translation reserve |
incl. profit for the year |
Total | controlling interests |
sharehol ders' equity |
| Closing balance, 31 December 2019 | 79 | 2,260 | 322 | 2,366 | 5,027 | - | 5,027 |
| Profit for the period | 136 | 136 | - | 136 | |||
| Other comprehensive income, net of tax | |||||||
| Actuarial gains/losses, defined benefit plans | -4 | -4 | - | -4 | |||
| Translation differences, foreign operations | 90 | 90 | - | 90 | |||
| Hedges of net investments | -67 | -67 | - | -67 | |||
| Total comprehensive income | - | - | 23 | 132 | 155 | - | 155 |
| Closing balance, 31 March 2020 | 79 | 2,260 | 345 | 2,498 | 5,182 | - | 5,182 |
| Profit for the period | 460 | 460 | 0 | 460 | |||
| Other comprehensive income, net of tax | |||||||
| Actuarial gains/losses, defined benefit plans | 8 | 8 | - | 8 | |||
| Translation differences, foreign operations | -446 | -446 | 0 | -446 | |||
| Hedges of net investments | 104 | 104 | - | 104 | |||
| Total comprehensive income | - | - | -342 | 468 | 126 | 0 | 126 |
| Issuance of shares | 0 | 2 | 2 | - | 2 | ||
| Dividends to shareholders | -134 | -134 | - | -134 | |||
| Issuance of share options | 2 | 2 | - | 2 | |||
| Transactions with shareholders | 0 | 2 | - | -132 | -130 | - | -130 |
| Closing balance, 31 December 2020 | 79 | 2,262 | 3 | 2,834 | 5,178 | 0 | 5,178 |
| Profit for the period | 140 | 140 | 0 | 140 | |||
| Other comprehensive income, net of tax | |||||||
| Actuarial gains/losses, defined benefit plans | 9 | 9 | - | 9 | |||
| Translation differences, foreign operations | 113 | 113 | 0 | 113 | |||
| Hedges of net investments | -17 | -17 | - | -17 | |||
| Total comprehensive income | - | - | 96 | 149 | 245 | 0 | 245 |
| Closing balance, 31 March 2021 | 79 | 2,262 | 99 | 2,983 | 5,423 | 0 | 5,423 |
At March 31, 2021, the share capital equalled SEK 78,732,820 (78,707,820) divided among 78,732,820 (78,707,820) shares with a face value of SEK 1.00. Lindab International AB (publ) holds 2,375,838 (2,375,838) treasury shares, corresponding to 3.0 percent (3.0) of the total number of Lindab shares. The number of outstanding shares totals 76,356,982 (76,331,982).
Lindab's Board of Directors proposes the Annual General Meeting on May 5, 2021, to approve a dividend distribution of SEK 3.40 (1.75) per share, distributed on two occasions, and the remaining retained earnings to be carried forward.
| SEK m | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|---|---|---|---|
| Net sales | 1 | 1 | 5 |
| Administrative expenses | -1 | -2 | -7 |
| Operating profit | 0 | -1 | -2 |
| Profit from subsidiaries | - | - | 20 |
| Interest expenses, internal | -1 | 0 | -4 |
| Earnings before tax | -1 | -1 | 14 |
| Tax on profit for the period | 0 | 0 | -3 |
| Profit or loss for the period1) | -1 | -1 | 11 |
1) Comprehensive income corresponds to profit for all periods.
| SEK m | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Financial fixed assets | |||
| Shares in Group companies | 3,467 | 3,467 | 3,467 |
| Financial interest-bearing fixed assets | 5 | 5 | 4 |
| Deferred tax assets | 1 | 1 | 1 |
| Total non-current assets | 3,473 | 3,473 | 3,472 |
| Current assets | |||
| Receivables from Group companies | 1 | 1 | 21 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total current assets | 1 | 1 | 21 |
| TOTAL ASSETS | 3,474 | 3,474 | 3,493 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted shareholders' equity | |||
| Share capital | 79 | 79 | 79 |
| Statutory reserve | 708 | 708 | 708 |
| Unrestricted shareholders' equity | |||
| Share premium reserve | 90 | 90 | 90 |
| Profit brought forward | 2,233 | 2,352 | 2,222 |
| Profit/Loss for the period | -1 | -1 | 11 |
| Total shareholders' equity | 3,109 | 3,228 | 3,110 |
| Provisions | |||
| Interest-bearing provisions | 4 | 5 | 4 |
| Total provisions | 4 | 5 | 4 |
| Current liabilities | |||
| Liabilities to Group companies | 357 | 238 | 373 |
| Accounts payable | 0 | 0 | 0 |
| Current tax liability | 2 | 1 | 4 |
| Accrued expenses and deferred income | 2 | 2 | 2 |
| Total current liabilities | 361 | 241 | 379 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,474 | 3,474 | 3,493 |
| 2021 | 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Jan-Mar | Oct-Dec Jul-Sep Apr-Jun Jan-Mar | Oct-Dec Jul-Sep Apr-Jun Jan-Mar | ||||||
| Net sales | 2,248 | 2,314 | 2,302 | 2,218 | 2,332 | 2,526 | 2,462 | 2,569 | 2,315 |
| Growth, % | -4 | -8 | -6 | -14 | 1 | 6 | 3 | 7 | 8 |
| of which organic | 0 | -4 | -4 | -12 | -1 | 3 | 1 | 5 | 5 |
| of which acquisitions/divestments | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | - |
| of which currency effects | -5 | -5 | -3 | -2 | 2 | 3 | 2 | 2 | 3 |
| Operating profit before depreciation/amortisation and impairment losses |
297 | 350 | 363 | 289 | 282 | 309 | 380 | 339 | 287 |
| Operating profit | 193 | 248 | 266 | 148 | 184 | 212 | 273 | 238 | 192 |
| Adjusted operating profit | 193 | 248 | 262 | 222 | 184 | 212 | 273 | 238 | 192 |
| Earnings before tax | 183 | 239 | 257 | 139 | 176 | 204 | 267 | 228 | 182 |
| Profit for the period | 140 | 186 | 198 | 76 | 136 | 143 | 212 | 181 | 142 |
| Operating margin, % | 8.6 | 10.7 | 11.6 | 6.7 | 7.9 | 8.4 | 11.1 | 9.3 | 8.3 |
| Adjusted operating margin, % | 8.6 | 10.7 | 11.4 | 10.0 | 7.9 | 8.4 | 11.1 | 9.3 | 8.3 |
| Profit margin before tax, % | 8.1 | 10.3 | 11.1 | 6.3 | 7.5 | 8.1 | 10.8 | 8.9 | 7.8 |
| Cash flow from operating activities | 60 | 356 | 452 | 295 | 26 | 366 | 395 | 177 | 79 |
| Cash flow from operating activities per share, SEK | 0.79 | 4.66 | 5.92 | 3.87 | 0.34 | 4.79 | 5.18 | 2.32 | 1.03 |
| Free cash flow | -45 | 107 | 276 | 190 | -107 | 271 | 347 | 64 | 35 |
| Adjusted free cash flow | -45 | 241 | 346 | 229 | -107 | 274 | 345 | 97 | 35 |
| Cash flow, investments in intangible assets/tangible fixed assets | 107 | 115 | 110 | 67 | 133 | 100 | 51 | 82 | 45 |
| Number of shares outstanding, thousands | 76,357 | 76,357 | 76,357 | 76,332 | 76,332 | 76,332 | 76,332 | 76,332 | 76,332 |
| Average number of shares outstanding, thousands | 76,347 | 76,357 | 76,334 | 76,332 | 76,332 | 76,332 | 76,332 | 76,332 | 76,332 |
| Earnings per share, SEK1) | 1.83 | 2.43 | 2.59 | 1.00 | 1.78 | 1.88 | 2.78 | 2.38 | 1.85 |
| Shareholders' equity attributable to Parent company shareholders | 5,423 | 5,178 | 5,127 | 4,976 | 5,182 | 5,027 | 4,947 | 4,708 | 4,643 |
| Shareholders' equity attributable to non-controlling interests | 0 | 0 | 0 | 0 | - | - | - | - | - |
| Shareholders' equity per share, SEK | 71.02 | 67.82 | 67.15 | 66.06 | 67.89 | 65.86 | 64.80 | 61.68 | 60.83 |
| Net debt | 1,759 | 1,640 | 1,740 | 1,859 | 2,093 | 1,771 | 1,996 | 2,262 | 2,130 |
| Adjusted net debt | 772 | 663 | 671 | 894 | 1,077 | 732 | 1,003 | 1,265 | 1,096 |
| Net debt/equity ratio, times | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.4 | 0.5 | 0.5 |
| Equity/asset ratio, % | 53.8 | 55.1 | 52.2 | 52.0 | 52.0 | 53.3 | 50.6 | 49.2 | 49.2 |
| Return on equity, % | 11.5 | 11.6 | 10.9 | 11.4 | 13.7 | 14.3 | 13.8 | 12.9 | 11.1 |
| Return on capital employed, % | 11.4 | 11.5 | 11.0 | 11.1 | 12.5 | 13.6 | 12.8 | 12.6 | 10.9 |
| Interest coverage ratio, times | 18.4 | 23.2 | 24.9 | 12.8 | 15.9 | 16.5 | 22.9 | 20.0 | 15.8 |
| Net debt/EBITDA, excl. one-off items and restructuring costs | 1.3 | 1.4 | 1.5 | 1.5 | 1.5 | 1.6 | 1.5 | 1.5 | 1.6 |
| Number of employees by end of period | 5,098 | 5,078 | 4,955 | 4,981 | 5,162 | 5,196 | 5,148 | 5,277 | 5,148 |
| 2020 | 2019 | 20182) | |
|---|---|---|---|
| SEK m | Jan-Dec | Jan-Dec | Jan-Dec |
| Net sales | 9,166 | 9,872 | 9,326 |
| Growth, % | -7 | 6 | 13 |
| of which organic | -6 | 3 | 8 |
| of which acquisitions/divestments | 1 | 0 | 1 |
| of which currency effects | -2 | 3 | 4 |
| Operating profit before depreciation/amortisation and impairment losses | 1,284 | 1,315 | 715 |
| Operating profit | 846 | 915 | 547 |
| Adjusted operating profit | 916 | 915 | 634 |
| Earnings before tax | 811 | 881 | 531 |
| Profit for the period | 596 | 678 | 394 |
| Operating margin, % | 9.2 | 9.3 | 5.9 |
| Adjusted operating margin, % | 10.0 | 9.3 | 6.8 |
| Profit margin before tax, % | 8.8 | 8.9 | 5.7 |
| Cash flow from operating activities | 1,129 | 1,017 | 593 |
| Cash flow from operating activities per share, SEK | 14.79 | 13.32 | 7.77 |
| Free cash flow | 466 | 717 | 488 |
| Adjusted free cash flow | 709 | 751 | 488 |
| Cash flow to investments in intangible assets and tangible fixed assets | 425 | 278 | 120 |
| Number of shares outstanding, thousands | 76,357 | 76,332 | 76,332 |
| Average number of shares outstanding, thousands | 76,340 | 76,332 | 76,332 |
| Earnings per share, SEK1) | 7.80 | 8.89 | 5.16 |
| Dividend per share, SEK | 3.403) | 1.75 | 1.75 |
| Shareholders' equity attributable to Parent company shareholders | 5,178 | 5,027 | 4,464 |
| Shareholders' equity attributable to non-controlling interests | 0 | - | 0 |
| Shareholders' equity per share, SEK | 67.82 | 65.86 | 58.49 |
| Net debt | 1,640 | 1,771 | 1,052 |
| Adjusted net debt | 663 | 732 | 1,052 |
| Net debt/equity ratio, times | 0.3 | 0.4 | 0.2 |
| Equity/asset ratio, % | 55.1 | 53.3 | 57.2 |
| Return on equity, % | 11.6 | 14.3 | 9.1 |
| Return on capital employed, % | 11.5 | 13.6 | 9.4 |
| Interest coverage ratio, times | 19.0 | 18.8 | 21.4 |
| Net debt/EBITDA, excl. one-off items and restructuring costs | 1.4 | 1.6 | 1.6 |
| Number of employees end of period | 5,078 | 5,196 | 5,071 |
1) Earnings per share is before and after dilution.
2) In 2019, Lindab implemented IFRS 16 Leases. By applying relief rules comparative figures from previous periods have not been restated, i.e. there is no full comparability to reported figures for 2018.
3) Proposed dividend for 2020, distributed on two occasions.
The consolidated accounts for the interim report have been prepared in line with the annual consolidated accounts for 2020, in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board RFR 1, Supplementary Accounting Rules for Groups.
This interim report has been prepared in accordance with IAS 34. The Group has applied the same accounting policies as described in the Annual Report for 2020. None of the new or amended standards, interpretations or improvements adopted by the EU have had any significant impact on the Group.
Information in terms of IAS 34 Interim financial reporting has been disclosed in notes to the financial statements as well as in other pages of the interim report.
The financial statements for the Parent company are prepared according to the Swedish Annual Accounts Act and RFR 2, Accounting for legal entities and according to the same accounting policies as were applied in the Annual Report for 2020.
Significant estimates and judgements are described in Note 4 in the Annual Report for 2020. No essential changes have been made to these estimates or judgements which could have a material impact on the interim report. It should be noted that as a consequence of covid-19, Lindab has carefully reassessed the need for changed estimates and judgements in connection with preparation of the interim report. This reassessment has, like for 2020, resulted in some adjustments of applied calculation rates in the valuation of expected credit losses for accounts receivable. The changed estimate of expected bad debt losses of those receivables has impacted all valuation categories, from accounts receivable that are not yet due to receivables that are overdue by more than 360 days.
Government grants are recognised in the financial statements when there is a reasonable assurance that Lindab complies with the conditions attached to the grants and when the grants will be received. Government grants compensating for specific costs are recognised as cost reductions in the consolidated statement of profit or loss and thus classified within the same category as the underlying cost. Government grants in the nature of more general allowances are recognised as other operating income. If government grants are received as a consequence of investment in fixed assets, the acquisition value of the acquired asset is reduced by the value of the recognised grant. Due to covid-19, Lindab has recognised government grants corresponding to SEK 6 m (-) for the period. The grants received primarily regarded to compensation for employee related costs and has thus been classified as cost reductions per category of cost in the profit or loss statement. In addition to the government grants, the Group has also recognised lower costs through reductions of employee related
social security contributions corresponding to SEK 1 m (-) as a result of covid-19.
No business combinations have been made during first quarter of 2021. No business combinations were made during the corresponding period in 2020.
The Group's segments comprise Ventilation Systems, Profile Systems and Building Systems. The basis for segmental reporting is the various customer offers provided by each business area. The customer offers within each segment are as follows:
Both Ventilation Systems' and Profile Systems' operations are managed based on geographically divided sales organisations, which are supported by a number of product and system areas with joint production and purchasing functions for each business area. Building Systems consists of a separate integrated project organisation. What is reported under Other includes the Parent company and other common functions.
Information on income from external customers and adjusted operating profit per operating segment is presented in the tables on page 11. Internal prices between the Group's segments are set based on the principle of arm's length, that is, between parties that are independent of each other, well-informed and have an interest in the transaction being carried out. Assets and investments are reported where the asset exists.
Lindab's related parties and the extent of transactions with its related parties are described in Note 33 of the Annual Report for 2020.
During the period, there have been no transactions between Lindab and related parties which have had a significant impact on the company's position and profit.
This interim report for Lindab International AB (publ) has been submitted following approval by the Board of Directors.
Båstad, May 5, 2021
Ola Ringdahl President and CEO
The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary information for investors and the company's management as they enable the assessment of relevant trends. Lindab's definitions of these measures may differ from other companies' definitions of the same terms. These financial measures should therefore be seen as a
supplement rather than as a replacement for measures defined according to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are presented below. Reconciliation of these measures is shown in the tables below. As the amounts in the tables below have been rounded off to SEK m, the calculations do not always add up due to round-off.
Amounts in SEK m unless otherwise indicated.
| Return on shareholders' equity | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
|---|---|---|---|
| Profit for the period, rolling twelve months | 600 | 672 | 596 |
| Average shareholders' equity | 5,204 | 4,901 | 5,125 |
| Return on shareholders' equity, % | 11.5 | 13.7 | 11.6 |
| Return on capital employed | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
| Total assets | 10,072 | 9,960 | 9,405 |
| Provisions and deferred tax liabilities | 133 | 131 | 116 |
| Other non-current liabilities | 8 | 9 | 8 |
| Total non-current liabilities | 141 | 140 | 124 |
| Provisions | 24 | 23 | 27 |
| Accounts payable | 1,025 | 936 | 712 |
| Other current liabilities | 1,132 | 1,090 | 1,123 |
| Total current liabilities | 2,181 | 2,049 | 1,862 |
| Capital employed | 7,750 | 7,771 | 7,419 |
| Earnings before tax, rolling twelve months | 818 | 875 | 811 |
| Financial expenses, rolling twelve months | 48 | 56 | 49 |
| Total | 866 | 931 | 860 |
| Average capital employed | 7,595 | 7,462 | 7,522 |
| Return on capital employed, % | 11.4 | 12.5 | 11.5 |
| 2021 | 2020 | 2020 | |
| One-off items and restructuring costs | Jan-Mar | Jan-Mar | Jan-Dec |
| Operating profit | 193 | 184 | 846 |
| Ventilation Systems | - | - | -70 |
| Profile Systems | - | - | - |
| Building Systems | - | - | - |
| Other operations | - | - | - |
| Adjusted operating profit | 193 | 184 | 916 |
| No one-off items or restructuring costs during the first quarter 2021 respectively 2020. For the period January-December 2020, operating profit includes one-off items and restructuring costs of SEK -70 m, related to Lindab's closure and divestment of IMP Klima Group. |
|||
| 2021 | 2020 | 2020 | |
| Free cash flow | Jan-Mar | Jan-Mar | Jan-Dec |
| Cash flow from operating activities | 60 | 26 | 1,129 |
| Cash flow from investing activities | -105 | ||
| -133 | -663 | ||
| Free cash flow | -45 | -107 | 466 |
| Cash flow related to divestments and acquisitions | - | - | -243 |
| Adjusted free cash flow | -45 | -107 | 709 |
| Net debt | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
| Non-current interest-bearing provisions for pensions and similar obligations | 273 | 295 | 279 |
| Non-current liabilities to credit institutions | 1,042 | 1,117 | 976 |
| Non-current lease liabilities | 725 | 779 | 745 |
| Current interest-bearing liabilities | 287 | 398 | 241 |
| Total liabilities | 2,327 | 2,589 | 2,241 |
| Financial interest-bearing fixed assets | 30 | 34 | 30 |
| Other interest-bearing receivables | 7 | 12 | 30 |
| Cash and cash equivalents | 531 | 450 | 541 |
| Total assets | 568 | 496 | 601 |
| Net debt | 1,759 | 2,093 | 1,640 |
| Adjusted net debt | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
| Net debt | 1,759 | 2,093 | 1,640 |
| Liabilities related to leasing | -987 | -1,016 | -977 |
| Adjusted net debt | 772 | 1,077 | 663 |
| Net debt/EBITDA | 31 Mar 2021 | 31 Mar 2020 | 31 Dec 2020 |
| Average net debt | 1,774 | 2,005 | 1,824 |
| Adjusted operating profit, rolling twelve months | 925 | 907 | 916 |
| Depreciation/amortisation and impairment losses, rolling twelve months, exclu ding one-off items and restructuring costs |
404 | 403 | 398 |
| EBITDA, rolling twelve months | 1,329 | 1,310 | 1,314 |
| Net debt/EBITDA, times | 1.3 | 1.5 | 1.4 |
Lindab International AB (publ), Corporate identification number 556606-5446, www.lindabgroup.com 19
| Organic growth | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|---|---|---|---|
| Change Net sales | -84 | 17 | -706 |
| Of which | |||
| Organic | 9 | -22 | -550 |
| Acquisitions/divestments | 21 | 3 | 35 |
| Currency effects | -114 | 36 | -191 |
| Interest coverage ratio | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
|---|---|---|---|
| Earnings before tax | 183 | 176 | 811 |
| Interest expenses | 11 | 12 | 45 |
| Total | 194 | 188 | 856 |
| Interest expenses | 11 | 12 | 45 |
| Interest coverage ratio, times | 18.4 | 15.9 | 19.0 |
| Operating profit before depreciation/amortisation-EBITDA | 2021 Jan-Mar |
2020 Jan-Mar |
2020 Jan-Dec |
| Operating profit | 193 | 184 | 846 |
Depreciation/amortisation and impairment losses 104 98 438 Of which one-off items and restructuring costs - - 40 Operating profit before depreciation/amortisation-EBITDA 297 282 1,284
| I ۰. |
|
|---|---|
| ٦ × ۰. |
Earnings per share, SEK: Profit for the period attributable to Parent company shareholders to average number of shares outstanding, based on a rolling twelve-month calculation.
Adjusted Free Cash Flow: Cash flow from operations and cash flow from investments, excluding company acquisitions/divestments.
Adjusted Net debt: Net debt excluding liabilities related to leasing.
Adjusted operating margin: Adjusted operating profit expressed as a percentage of net sales.
Adjusted operating profit: Operating profit adjusted for one-off items and restructuring costs when the amount is significant in size.
Cash flow from operating activities per share, SEK: Cash flow from operating activities to number of shares outstanding at the end of the period.
Equity/asset ratio: Shareholders' equity including non-controlling interests, expressed as a percentage of total assets.
Free Cash Flow: Cash flow from operations and cash flow from investments.
Interest coverage ratio, times: Earnings before tax plus interest expense to interest expense
Investments in intangible assets and tangible fixed assets: Investments excluding acquisitions and divestments of companies.
Net debt: Interest-bearing provisions and liabilities less interest-bearing assets and cash and cash equivalents.
NET debt/EBITDA: Average net debt in relation to EBITDA, excluding one-off items and restructuring costs, based on a rolling twelve-month calculation.
Net debt/equity ratio: Net debt to shareholders' equity including non-controlling interests.
One-off items and restructuring costs: Items not included in the ordinary business transactions and when each amount is significant in size and therefore has an effect on the profit or loss and key performance indicators, are classified as one-off items and restructuring costs.
Operating margin: Operating profit expressed as a percentage of net sales.
Operating profit: Profit before financial items and tax.
Operating profit before depreciation/amortisation - EBITDA: Operating profit before planned depreciation/amortisation.
Organic growth: Change in sales adjusted for currency effects as well as acquisitions and divestments compared with the same period of the previous year.
Profit margin: Earnings before tax expressed as a percentage of net sales.
Return on capital employed: Earnings before tax after adding back financial expenses based on a rolling twelve-month calculation, expressed as a percentage of average capital employed1). Capital employed refers to total assets less non-interest-bearing provisions and liabilities.
Return on shareholders' equity: Profit for the period attributable to Parent company shareholders based on a rolling twelve-month calculation, expressed as a percentage of average shareholders' equity1) attributable to Parent company shareholders.
Shareholders' equity per share, SEK: Shareholders' equity attributable to Parent company shareholders to number of shares 1) Average capital is based on the quarterly value. outstanding at the end of the period.
The Group had sales of SEK 9,166 m in 2020 and is established in 24 countries with approximately 5,000 employees.
The main market is non-residential construction, which accounts for 80 percent of sales, while residential construction accounts for 20 percent of sales. During 2020, the Nordic region accounted for 48 percent, Western Europe for 32 percent, CEE/CIS (Central and Eastern Europe) for 18 percent and Other markets for 2 percent of total sales.
The share is listed on the Nasdaq Stockholm, Mid Cap, under the ticker symbol LIAB.
Lindab develops, manufactures, markets and distributes products and system solutions for simplified construction and improved indoor climate.
Lindab's product and solution offering includes products and entire systems for ventilation, cooling and heating, as well as construction products and building solutions such as steel rainwater
systems, roofing and wall cladding, steel profiles for wall, roof and beam constructions and large span buildings. Lindab also offers complete, pre-engineered steel construction systems under the Astron brand. These are complete building solutions comprising the outer shell with the main structure, wall, roof and accessories.
Lindab's products are characterised by high quality, ease of assembly, energy efficiency and environmentally friendly design and are delivered with high levels of service. Altogether, this provides greater customer value.
Lindab's value chain is characterised by a good balance between centralised and decentralised functions. The distribution has been developed in order to be close to the customer. Sales are made through around 130 Lindab branches and approximately 3,000 retailers, with the exception of Building Systems, which conducts sales through a network of approximately 300 building contractors.
| Share price performance: | +4% |
|---|---|
| Average share turnover/day: | 210,697 |
| Highest price paid (February 9): | 206.00 SEK |
| Lowest price paid (January 4): | 168.30 SEK |
| Closing price March 31: | 176.50 SEK |
| Market cap March 31: | SEK 13,477 m |
| Total no. of shares: | 78,732,820 |
| - whereof treasury shares: | 2,375,838 |
| - whereof outstanding shares: | 76,356,982 |
A live audiocast will be held at 1:00 pm (CEST) on May 5, 2021. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Madeleine Hjelmberg, Acting CFO.
To access the audiocast, please call:
Phone +46 (0) 8 566 427 03 Alternatively phone +44 333 300 9268
The audiocast and presentation can be followed live via Lindab's homepage.
For more information see www.lindabgroup.com.
| Annual General Meeting | May 5, 2021 |
|---|---|
| Interim Report January - June | July 20, 2021 |
| Interim Report January - September | October 29, 2021 |
| Year-End Report | February 11, 2022 |
| All financial reports will be published at www.lindabgroup.com. |
This is information that Lindab International AB (publ) 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 below, at 07:40 am (CEST) on May 5, 2021.
Ola Ringdahl, President and CEO | E-mail: [email protected] Madeleine Hjelmberg, Acting CFO | E-mail: [email protected] Catharina Paulcén, corporate communication | E-mail: [email protected]
Telephone +46 (0) 431 850 00 For more information, please visit www.lindabgroup.com.
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