Annual Report • Feb 9, 2021
Annual Report
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Helsingborg, 9 February 2021
| Amounts in SEKm unless otherwise stated | Q4 2020 | Q4 2019 | Change | 12M 2020 | 12M 2019 | Change |
|---|---|---|---|---|---|---|
| Net sales | 769 | 763 | 1% | 3 303 | 3 122 | 6% |
| Gross profit | 207 | 200 | 3% | 929 | 814 | 14% |
| Gross margin % | 26,9% | 26,2% | 0,7pp | 28,1% | 26,1% | 2,1pp |
| EBITDA | 93 | 91 | 2% | 455 | 371 | 23% |
| EBITDA margin, % | 12,1% | 12,0% | 0,2pp | 13,8% | 11,9% | 1,9pp |
| EBIT | 65 | 62 | 4% | 337 | 260 | 29% |
| EBIT margin, % | 8,4% | 8,2% | 0,3pp | 10,2% | 8,3% | 1,9pp |
| Return on capital employed, % | n/a | n/a | n/a | 15,6% | 12,9% | n/a |
| Net profit | 56 | 61 | -9% | 253 | 196 | 29% |
| Cash flow from operating activities | 183 | 154 | 19% | 462 | 312 | 48% |
| Net debt | 274 | 665 | -59% | 274 | 665 | -59% |
| Earnings per share before dilution, SEK | 2,32 | 2,56 | -9% | 10,60 | 8,19 | 30% |
| Earnings per share after dilution, SEK | 2,30 | 2,54 | -9% | 10,52 | 8,13 | 29% |
A conference call for investors, analysts and media will be held today, 9 February 2021, at 10:00 a.m. CET and can be joined online at www.nordicwaterproofing.com. Presentation materials for the call will be available on the website one hour before the call.
To participate, please dial:
| From the United Kingdom: | +44 33 3300 9271 |
|---|---|
| From Denmark: | +45 82 33 31 94 |
| From Sweden: | +46 8 505 583 54 |
Unless otherwise stated, figures within parentheses refer to the preceding year or the corresponding period in the preceding year in respect of income statement and/or cash flow items and the end of the preceding year or the corresponding period in the preceding year in respect of balance sheet items. For definitions and reconciliations of financial and alternative key performance indicators, please see page 22 - 23
The Group ends a strong 2020 with another good quarter of organic growth and strong cash flow. Consolidated net sales in the fourth quarter increased by 1 percent compared with the previous year, from SEK 763 million to SEK 769 million. Organic growth was 5 percent and the currency translation effects were -4 percent.
EBIT for the fourth quarter amounted to SEK 65 million, compared with SEK 62 million for the corresponding period last year, an increase of 4 percent. The positive development of the operating result is mainly due to increased volumes and good cost control. We also had a strong cash flow during the quarter, which was mainly due to reductions in working capital.
I am happy to report that thanks to a proactive and highly responsible approach and behaviour among our colleagues, fortunately we have seen few cases of Covid-19 among our staff and we have had a limited impact on our business.
During the quarter we completed the work to migrate the parent company from Denmark to Sweden. The new Swedish parent company Nordic Waterproofing Holding AB has been listed on Nasdaq Stockholm since 30 November.
Our renewed focus on an active acquisition strategy has already yielded two transactions after the end of the quarter, Byggpartner in Norway, a company that performs installation and maintenance of waterproofing products, and Gauris in the Netherlands, a distributor of products for dams and EPDM sealing materials. We welcome our new colleagues in both Norway and the Netherlands to Nordic Waterproofing. We expect additional transactions during the remainder of the year.
The increase in net sales of 1 percent in the fourth quarter is mainly explained by good sales in the Products & Solutions operating segment, which organically grew 6 percent, while the Installation Services business segment declined organically by 11 percent compared to a strong quarter last year.
In the Products & Solutions segment, the bitumen-based business showed good growth. In particular growth was strong in Norway and Finland. Sweden also had good growth while Denmark was on level with the fourth quarter of the previous year. We expect that we have continued to increase our market share in the Nordic region.
Our rubber membrane business in SealEco had a strong fourth quarter, again with double-digit growth rates. Distri Pond, which was acquired in February 2019, had another strong quarter with sales growth of over 40 percent and for the whole of 2020 growth was 35 percent.
Our prefabricated elements business grew by 20 percent compared to a strong fourth quarter last year. As previously communicated, a profit improvement program is underway within the Taasinge Group. In the fourth quarter, operating profit showed a clear improvement over the previous year but is still not at a satisfactory level. In both Denmark and Norway we have strong orderbooks at the end of the year.
In the Installation Services segment, where sales are mainly generated in Finland, market developments continue to vary by region. We see better market development in the Helsinki area while the market is weaker in areas outside
Martin Ellis, President and CEO
Net sales: SEK 3,303m (3,122)
EBITDA: SEK 455 m (371) 13.8% (11.9%)
EBIT: SEK 337 m (260) 10.2% (8.3%)
ROCE (R12): 15.6% (12.9%)
the major urban areas. Net sales decreased by 11 percent, of which 8 percent organically, compared with the strong fourth quarter (+17 percent) the previous year. Most of the operations had negative growth rates with the exception of roof maintenance companies, which showed good growth in both Sweden and Finland.
Our Danish franchise companies continue to experience a strong and stable market and performed well in the fourth quarter with an EBIT contribution over the corresponding period last year and ended the year with order books at a slightly lower level than the previous year.
Given the short- and long-term uncertainty regarding the effects of the Covid-19 pandemic, we have continued a strong focus on monitoring order intake, cost and customer credit control. We also have continued measures to protect the availability of input materials to ensure our delivery capacity to our customers. Going forward, we continue to closely monitor the potential impact of the Covid-19 outbreak. We will continue to prioritize protecting the health of our employees and taking responsibility for our communities and for our customers.
We continue to focus on organic growth, profitability and selective acquisitions. Our balance sheet is strong and we continue to have the capacity to carry out acquisitions. We have a strategic focus to promote sustainable building solutions and enhance our service and product portfolio.
Last but not least, I would like to thank all colleagues in the Group for the efforts made during this year, which has given us many new and unexpected challenges to deal with. We can look back on a strong and successful year, confirming the strength of our decentralized business model where all business units can act quickly and flexibly. Our employees' commitment, enthusiasm and creativity are crucial factors in making Nordic Waterproofing a strong company and a fantastic workplace.
Helsingborg, 9 February 2021
Martin Ellis, President and CEO
The AGM of Nordic Waterproofing Holding AB will be held on 29 April 2021.
The Board of Directors will propose the Annual General Meeting to resolve to pay a cash dividend of SEK 5.50 per share, totaling SEK 131 m. This represents ca 51 percent of the net profit in 2020. No dividend was distributed during 2020 and therefore will the Board of Directors also propose the Annual General Meeting to resolve to pay an extra cash dividend of SEK 4.50 per share, totaling SEK 108 m corresponding to 55% of the net profit for 2019. In total, SEK 10.00 per share and SEK 239 m.
Information about the nomination committee is published on the Group's website: www.nordicwaterproofing.com/en/nomination-committee.
The 2020 Annual Report will be available on Nordic Waterproofing's website and at the company's headquarters from 6 April 2021.
Consolidated net sales for the fourth quarter increased by 1 percent to SEK 769 m (763). Organic growth was 5 percent and currency translation effects were negatively affecting net sales by -4 percent. Net sales for the period January–December increased by 6 percent to SEK 3 303 m (3 122). Organic growth was 7 percent, sales in acquired companies contributed by 1 percent and currency translation effects were negatively affecting net sales by - 2 percent.
| Q4 2020 | Q4 2020 | 12M 2020 | 12M 2020 | |
|---|---|---|---|---|
| Analysis of net sales | (%) | SEK m) | (%) | (SEKm) |
| Previous period | 763 | 3 122 | ||
| Organic growth | 5% | 37 | 7% | 224 |
| Structural effects | 0% | 0 | 1% | 24 |
| Currency effects | -4% | -31 | -2% | -66 |
| Current period | 1% | 769 | 6% | 3 303 |
Sales in Finland decreased organically by -11 percent in the fourth quarter compared with the corresponding period in the preceding year. In Denmark sales increased organically by 9 percent in the quarter, while sales in Sweden increased by 3 percent. Sales in Norway increased by 12 percent with the bitumen-based business showing a strong growth and the prefabricated element business a small decline. The development in SEK in Norway was 1 percent with a currency effect of -11 percent. Sales in other countries in Europe increased by 10 percent in the quarter.
EBITDA for the fourth quarter increased to SEK 93 m (91) and the EBITDA margin increased to 12.1 percent (12.0), mainly driven by improved margins.
EBITDA for the period January - December increased to SEK 455 m (371) and the EBITDA margin increased to 13.8 percent (11.9).
Operating profit (EBIT) for the fourth quarter increased to SEK 65 m (62) and the EBIT margin increased to 8.4 percent (8.2). Earnings were negatively affected by amortizations of customer relations in the acquired companies of SEK -5 m (-5).
Operating profit (EBIT) for the period January - December increased to SEK 337 m (260) and the EBIT margin increased to 10.2 percent (8.3). Earnings were negatively affected by amortizations of customer relations in the acquired companies of SEK -20 m (-19).
Return on capital employed (ROCE) on a rolling 12 months basis was 15.6 percent (12.9) after the fourth quarter, exceeding our long-term financial target of 13.0 percent. The increase is mainly explained by the improved profitability.
Net financial items for the fourth quarter of 2020 amounted to SEK 8 m (1). The difference is mainly explained by updates on valuations for the options to buy outstanding shares in not wholly-owned subsidiaries. Net financial items for the period January - December amounted to SEK -16 m (-28). The difference is mainly explained by positive exchange rate differences and lower interest costs.
The profit before tax for the fourth quarter amounted to SEK 72 m (64) and profit after tax amounted to SEK 56 m (61). The profit before tax for the period January - December amounted to SEK 321 m (233) and profit after tax amounted to SEK 253 m (196). The higher effective tax rate in 2020 (21.0 percent) compared to previous year (15.9 percent) is primarily explained by no tax cost in Finland previous year due to tax-loss carry-forwards.
The Group has not recorded any major negative impact on our operations from Brexit, neither are any expected.
Nordic Waterproofing has been affected to varying degrees by the Covid-19 pandemic.
In the Nordic countries the impact has been low on the business and our supply chains and delivery to customers have continued to work well. Whenever possible our employees have worked from home and meetings have to largest possible extent been held electronically. The business units in the UK and in Belgium were forced to close at the end of the first quarter following governmental decisions. During the fourth quarter the operations have been running on ordinary level, focused on the safety of our employees and serving our customers in the best possible way.
Good cost control and some cost avoidance due to reduced travelling during the pandemic have had a positive impact on margins and cost level also during the fourth quarter. It is hard to predict if this trend will continue because of the uncertain situation with how the pandemic will develop.
Governmental subsidies related to the Covid-19 pandemic amounted to below SEK 1 m for the fourth quarter and are booked as a cost reduction.
Deferrals of taxes and social security costs related to the Covid-19 pandemic totaled SEK 7 m at the end of the fourth quarter and are booked as non-interest-bearing liabilities.
Cash flow from operating activities during the fourth quarter was SEK 183 m (154). The positive development in working capital led to the strong cash flow in the quarter.
Cash flow from investing activities during the fourth quarter was SEK -23 m (-18). Both years the investments were only for the ordinary operations.
Cash flow from financing activities during the fourth quarter was SEK -28 m (-68). During the quarter has the full EUR 75 m term loan facility been utilized.
No dividend has been paid so far during 2020. The AGM on 15 June decided to give the Board of Directors a mandate to distribute up to a maximum of SEK 107 m (4.50 per share) until the AGM 2021. This dividend has not been distributed.
Gross investments excluding acquisitions during the fourth quarter of 2020 amounted to SEK 23 m (8), while depreciation amounted to SEK -13 m (-12). Right-of-use depreciations relating to IFRS 16 amounts to SEK -13 m (-12). Amortizations of intangible assets amounted to SEK -5 m (-5), primarily consisting of amortizations of customer relations in the acquired companies.
Nordic Waterproofing's principal external financing agreement was renewed during the second quarter and has now final maturity date in June 2023 with a 1+1 year extension option. It contains a EUR 75.0 m (73.0) term loan facility and a EUR 40.0 m (26.5) revolving loan facility, of which EUR 14.4 m is allocated to the Group cash pool overdraft facility. The loan and credit facilities bear variable interest and run without requiring repayment in instalments. The financing agreement contains financial covenants that are monitored and followed up on a quarterly basis. At the end of the fourth quarter Nordic Waterproofing is in compliance with the covenants as per the facility agreement.
The consolidated interest-bearing net debt amounted to SEK 238 m at the end of the period, compared with SEK 610 m at the end of 2019. The reduction in net debt of SEK 372 m compared to same period previous year is mainly explained by cash flow from ordinary operations, no significant investments or acquisitions done last twelve months and no dividend being distributed.
Consolidated cash and cash equivalents amounted to SEK 604 m (197) at the end of the period. Since no portion, SEK 0 m (0), of the Group's total overdraft facility of SEK 141 m (150) was utilized at the end of the quarter, the total cash and cash equivalents available amounted to SEK 745 m (347) at the end of the quarter.
Indebtedness calculated as net interest-bearing debt/EBITDA during the most recent twelve-month period was 0.5x (1.6x) at the end of the period, and the net debt/equity ratio was 0.2x (0.5x).
There were no significant changes during the period.
The average number of employees during the fourth quarter of 2020 (expressed as full-time equivalents) was 1,153 compared with 1,096 during the same period in the preceding year. The average number of employees in the parent company has been 0 (0).
In November, the former Danish parent company Nordic Waterproofing Holding A/S merged with the wholly owned Swedish subsidiary Nordic Waterproofing Holding AB and with the latter as a surviving entity. The merger was made with an exchange of shares 1:1, which means that the shareholders' acquisition values remain unchanged.
As a consequence, the Danish company was delisted from Nasdaq Stockholm on 26 November, whereupon the new Swedish parent company was listed on November 30, also on Nasdaq Stockholm mid cap.
Nordic Waterproofing's target for the return on capital employed (ROCE) is at least 13 percent. The outcome after 2020 was 15.6 percent.
The interest-bearing net debt/EBITDA-ratio shall not exceed 3.0 times. The outcome after 2020 was 0.5 times. The sales growth target to exceed the growth in the Group's current markets through organic growth, in addition to expected growth through selective acquisitions. It is the opinion of the Group that we have outperformed the market growth on our most relevant markets.
The parent Company, Nordic Waterproofing Holding AB, is a holding company that does not conduct any business. The parent company's earnings primarily reflect the net revenues for joint Group services and deductions for salaries, other remuneration and compensation, and similar expenses. For information about the effects of the merger, see note 9.
The Company has established three incentive programs ("LTIP 2018", "LTIP 2019" and "LTIP 2020"). The total cost, including social security charges, is estimated to be at most ca SEK 10 m for each program, during the period of the program, under the assumption of an average annual growth of operating profit (EBIT) before items affecting comparability of 10-12 percent. No new shares will be issued in the Company due to the programs. However, the Company will acquire treasury shares in order to secure the provision of shares and to secure and cover social security charges. The costs for the programs are expected to have a marginal effect on Nordic Waterproofing Group's key ratios. The maximum number of shares that can be granted under the LTIP 2018, LTIP 2019 and LTIP 2020 are 96,161, 102,342 and 108,993 respectively, considering persons having left the Company. As of 31 December 2020, the Company has acquired and owns 175,737 (200,000) treasury shares.
As per 31 December 2020, the share capital amounted to SEK 24,084 thousand and the total number of issued shares were 24,083,935. The Company has one (1) class of shares. Each share entitles the holder to one vote at general meetings.
As per 31 December 2020, Nordic Waterproofing Holding AB had more than 5,500 shareholders and owns itself 175,737 treasury shares (0.7 percent of the total number of issued shares) following the share buyback program in connection with the long-term incentive programs.
There have not been any changes in shares and share capital during the fourth quarter of 2020.
The number of shareholders has during the quarter increased with ca 1.000, from ca 4.490 to ca 5.470. The largest shareholders in Nordic Waterproofing Holding AB, as per 30 December 2020, are stated below.
| Number of | |||
|---|---|---|---|
| Owner | shares | Capital, % | Votes, % |
| Svolder | 3 169 197 | 13,2% | 13,3% |
| Swedbank Robur Funds | 2 117 589 | 8,8% | 8,9% |
| Mawer Investment Management | 1 999 470 | 8,3% | 8,4% |
| Carnegie Funds | 1 634 528 | 6,8% | 6,8% |
| Handelsbanken Funds | 1 562 159 | 6,5% | 6,5% |
| Länsförsäkringar Funds | 1 402 255 | 5,8% | 5,9% |
| Alcur Funds | 1 281 667 | 5,3% | 5,4% |
| Third AP-fund | 1 138 707 | 4,7% | 4,8% |
| Prior & Nilsson Funds | 790 227 | 3,3% | 3,3% |
| Canaccord Genuity Wealth Management | 497 643 | 2,1% | 2,1% |
| Total 10 largest shareholders | 15 593 442 | 64,7% | 65,2% |
| Other shareholders | 8 314 756 | 34,5% | 34,8% |
| Total number of votes | 23 908 198 | 99,3% | 100,0% |
| Treasury shares | 175 737 | 0,7% | n/a |
| Total number of shares | 24 083 935 | 100,0% | n/a |
Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority. Holdings with depositories are reported as "other shareholders".
Net sales for the fourth quarter of 2020 increased by 6 percent compared with the corresponding period in the preceding year, amounting to SEK 584 m (554). Organic growth was 10 percent and the currency effects were negative with -4 percent.
Sales in Denmark increased by 9 percent in the quarter from the corresponding period in the preceding year, whereof 12 percent organic and a negative currency effect of -4 percent. External sales in Finland increased by 30 percent in the fourth quarter, including a negative currency effect of -5 percent. Sales in Sweden decreased by -1 percent while sales in Norway increased by 1 percent. The organic sales development in Norway in local currency was 12 percent, the development in Norway is explained by an increase from sales in the Builders Merchant and Flatroofing segments respectively. Sales in other countries in Europe increased by 9 percent in the quarter.
| Q4 2020 | Q4 2020 | 12M 2020 | 12M 2020 | |
|---|---|---|---|---|
| Analysis of net sales, Product & Solutions | (%) | SEK m) | (%) | (SEKm) |
| Previous period | 554 | 2 358 | ||
| Organic growth | 10% | 54 | 10% | 243 |
| Structural effects | 0% | 0 | 1% | 24 |
| Currency effects | -4% | -23 | -2% | -55 |
| Current period | 6% | 584 | 9% | 2 570 |
EBITDA amounted to SEK 73 m (75) and the EBITDA margin was 12.4 percent (13.6) in the fourth quarter. Operating profit (EBIT) for Products & Solutions for the fourth quarter 2020 decreased slightly and amounted to SEK 50 m (51), mainly driven by increased volumes, improved margins and good cost control. The EBIT margin was 8.5 percent (9.2).
Business in this operating segment is primarily conducted in Finland and through the non-consolidated franchise companies in Denmark. Net sales for the fourth quarter of 2020 decreased by -11 percent compared with the corresponding period in the preceding year, amounting to SEK 205 m (231). Organic development was -8 percent and the currency effects were negative with -3 percent. The market development is fragmented. We see good market development in the Helsinki area while the market is weaker in the more rural areas of Finland.
| Q4 2020 | Q4 2020 | 12M 2020 | 12M 2020 | |
|---|---|---|---|---|
| Analysis of net sales, Installation Services | (%) | SEK m) | (%) | (SEKm) |
| Previous period | 231 | 866 | ||
| Organic growth | -8% | -19 | -3% | -22 |
| Structural effects | 0% | 0 | 0% | 0 |
| Currency effects | -3% | -8 | -1% | -11 |
| Current period | -11% | 205 | -4% | 833 |
EBITDA amounted to SEK 24 m (25) and the EBITDA margin was 11.7 percent (10.7) in the fourth quarter. Operating profit (EBIT) for Installation Services for the fourth quarter amounted to SEK 19 m (21). The EBIT margin was 9.3 percent (9.1) in the quarter.
Note: both EBITDA and EBITDA %-age include the share of profit in associated companies
| Key figures (SEKm) | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 769 | 916 | 949 | 670 | 763 | 901 | 889 | 569 |
| EBITDA | 93 | 164 | 166 | 32 | 91 | 137 | 124 | 18 |
| EBITDA margin, % | 12,1% | 17,9% | 17,4% | 4,8% | 12,0% | 15,3% | 13,9% | 3,1% |
| Operating profit (EBIT) | 65 | 133 | 137 | 2 | 62 | 109 | 95 | -7 |
| EBIT margin, % | 8,4% | 14,6% | 14,4% | 0,4% | 8,2% | 12,1% | 10,7% | -1,2% |
| ROCE (R12), % | 15,6% | 15,9% | 15,1% | 13,2% | 12,9% | 12,7% | 12,1% | 11,9% |
| Net profit | 56 | 98 | 109 | -9 | 61 | 78 | 67 | -10 |
| Cash flow from operating activities | 183 | 250 | 114 | -86 | 154 | 142 | 78 | -61 |
| Cashflow from operating activities (R12) | 462 | 433 | 324 | 288 | 312 | 248 | 230 | 192 |
| Operating cash conversion (R12), % | 103% | 96% | 76% | 75% | 84% | 73% | 75% | 70% |
| Interest-bearing net debt | 238 | 383 | 619 | 736 | 610 | 745 | 870 | 783 |
| Net debt | 274 | 431 | 665 | 793 | 665 | 799 | 925 | 830 |
| Earnings per share before dilution, SEK | 2,32 | 4,10 | 4,55 | -0,37 | 2,56 | 3,28 | 2,79 | -0,44 |
| Net sales by segment (SEKm) | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
| Products & Solutions | 584 | 694 | 753 | 539 | 554 | 671 | 688 | 445 |
| Installation Services | 205 | 249 | 228 | 151 | 232 | 262 | 234 | 138 |
| Group Items & Eliminations | -21 | -28 | -32 | -20 | -22 | -33 | -34 | -14 |
| Total | 769 | 916 | 949 | 670 | 763 | 901 | 889 | 569 |
| Net sales by country (SEKm) | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
| Sweden | 128 | 169 | 189 | 105 | 124 | 164 | 171 | 75 |
| Norway | 101 | 109 | 102 | 85 | 99 | 111 | 122 | 79 |
| Denmark | 206 | 210 | 216 | 179 | 190 | 193 | 175 | 142 |
| Finland | 221 | 277 | 268 | 174 | 247 | 302 | 271 | 158 |
| Europe | 111 | 148 | 171 | 125 | 101 | 129 | 148 | 114 |
| Rest of world | 2 | 2 | 2 | 2 | 1 | 2 | 3 | 1 |
| Total | 769 | 916 | 949 | 670 | 763 | 901 | 889 | 569 |
| EBITDA by segment (SEKm) | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
| Products & Solutions | 73 | 145 | 148 | 46 | 75 | 114 | 112 | 31 |
| Installation Services | 24 | 38 | 28 | -4 | 25 | 32 | 23 | -5 |
| Group Items & Eliminations | -3 | -19 | -11 | -10 | -9 | -8 | -11 | -8 |
| Total | 93 | 164 | 166 | 32 | 91 | 137 | 124 | 18 |
| EBIT by segment (SEKm) | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
| Products & Solutions | 50 | 119 | 125 | 22 | 51 | 90 | 87 | 10 |
| Installation Services | 19 | 34 | 24 | -8 | 21 | 27 | 19 | -8 |
| Group Items & Eliminations | -4 | -20 | -12 | -11 | -10 | -9 | -12 | -8 |
Today, the Group's Board of Directors and CEO have discussed and approved the year-end report of Nordic Waterproofing Holding AB for the period January–December 2020.
The year-end report is presented in accordance with IAS 34 "Interim Financial Reporting" as approved by the EU and additional Swedish requirements relating to the disclosure of information for interim reports of listed companies.
In our opinion, the year-end report gives a true and fair presentation of the Group's assets, shareholders' equity and liabilities, and financial position as at 31 December 2020, as well as of the results of the Group's activities and cash flow for the period January-December 2020.
Furthermore, in our opinion, the review by management provides a true and fair statement of the development of the Group's activities, financial position and profit or loss for the period, and describes the most significant risks and uncertainties faced by the Group.
Helsingborg, 9 February 2021
CEO
Martin Ellis President & CEO
Mats O. Paulsson Leena Arimo Steffen Baungaard Chairman Allan Jørgensen Riitta Palomäki Hannu Saastamoinen Kristina Willgård
This year-end report has not been reviewed by the company's auditor.
| Amounts in SEKm | ||||
|---|---|---|---|---|
| unless otherwise stated | Q4 2020 | Q4 2019 | 12M 2020 | 12M 2019 |
| Net sales | 769 | 763 | 3 303 | 3 122 |
| Gross profit | 207 | 200 | 929 | 814 |
| EBITDA | 93 | 91 | 455 | 371 |
| Operating profit (EBIT) | 65 | 62 | 337 | 260 |
| Net profit | 56 | 61 | 253 | 196 |
| Gross margin, % | 26,9% | 26,2% | 28,1% | 26,1% |
| EBITDA margin, % | 12,1% | 12,0% | 13,8% | 11,9% |
| EBIT margin, % | 8,4% | 8,2% | 10,2% | 8,3% |
| Cash flow from operating activities | 183 | 154 | 462 | 312 |
| Operating cash conversion, % | n/a | n/a | 102% | 84% |
| Investments in tangible & intangible assets | -20 | -12 | -81 | -65 |
| Total assets | 2 864 | 2 536 | 2 864 | 2 536 |
| Capital employed | 2 261 | 2 016 | 2 261 | 2 016 |
| Equity | 1 418 | 1 210 | 1 418 | 1 210 |
| Interest-bearing net debt | 238 | 610 | 238 | 610 |
| Interest-bearing net debt/EBITDA, multiple | n/a | n/a | 0,5x | 1,6x |
| Net debt | 274 | 665 | 274 | 665 |
| Net debt/EBITDA, multiple | n/a | n/a | 0,6x | 1,8x |
| Interest coverage ratio, multiple | 15,2x | 10,8x | 15,0x | 10,4x |
| Equity/assets ratio, % | 49,5% | 47,7% | 49,5% | 47,7% |
| Net debt/equity ratio, multiple | 0,2x | 0,5x | 0,2x | 0,5x |
| Return on shareholders' equity, % | n/a | n/a | 19,6% | 17,3% |
| Return on capital employed, % | n/a | n/a | 15,6% | 12,9% |
| Return on capital employed excluding goodwill, % | n/a | n/a | 27,8% | 24,5% |
| Average number of shares before dilution | 23 908 198 | 23 883 935 | 23 894 198 | 23 906 145 |
| Average number of shares after dilution | 24 083 935 | 24 083 935 | 24 083 935 | 24 083 935 |
| Earnings per share before dilution, SEK | 2,32 | 2,56 | 10,60 | 8,19 |
| Earnings per share after dilution, SEK | 2,30 | 2,54 | 10,52 | 8,13 |
| Shareholders equity per share before dilution, SEK | 59,31 | 50,65 | 59,35 | 50,60 |
| Shareholders equity per share after dilution, SEK | 58,88 | 50,23 | 58,88 | 50,23 |
| Cash flow from operating activities per share before dilution, SEK | 7,67 | 6,45 | 19,34 | 13,07 |
| Cash flow from operating activities per share after dilution, SEK | 7,62 | 6,40 | 19,20 | 12,96 |
| Number of shares before dilution | 23 908 198 | 23 883 935 | 23 908 198 | 23 883 935 |
| Number of shares after dilution | 24 083 935 | 24 083 935 | 24 083 935 | 24 083 935 |
| Amounts in SEKm | ||||
|---|---|---|---|---|
| unless otherwise stated | Q4 2020 | Q4 2019 | 12M 2020 | 12M 2019 |
| Net sales Cost of goods sold |
768,7 -561,9 |
762,7 -563,1 |
3 302,8 -2 373,6 |
3 121,6 -2 308,3 |
| Gross profit/loss | 206,8 | 199,6 | 929,2 | 813,3 |
| Selling expenses | -103,0 | -99,3 | -403,6 | -391,6 |
| Administrative expenses | -52,4 | -46,5 | -220,6 | -185,6 |
| Research and development expenses | -0,7 | -1,5 | -4,3 | -5,6 |
| Other operating income | 2,2 | 2,9 | 10,0 | 10,5 |
| Other operating expenses | -1,4 | -1,8 | -4,8 | -4,5 |
| Share of profit in associated companies | 13,3 | 8,9 | 31,2 | 23,8 |
| Operating profit/loss (EBIT) | 64,8 | 62,3 | 337,1 | 260,3 |
| Net finance items | 7,5 | 1,2 | -16,3 | -27,7 |
| Profit/loss before tax | 72,3 | 63,5 | 320,8 | 232,6 |
| Tax | -16,7 | -2,3 | -67,5 | -36,9 |
| Profit/loss after tax | 55,5 | 61,2 | 253,3 | 195,8 |
| Other comprehensive income | ||||
| Items that are or may be reclassified to profit/loss for the year | ||||
| Translation differences for the year in translation of foreign | ||||
| operations | ||||
| Gains/losses on hedging of currency risk in foreign operations | -50,6 0,0 |
-29,9 0,0 |
-48,1 0,0 |
13,2 -2,3 |
| Gains/losses on raw material hedging | 12,1 | 4,3 | -5,0 | 0,1 |
| Tax on gains/losses on comprehensive income | -2,6 | -0,9 | 1,1 | 0,5 |
| Total other comprehensive income after tax | -41,2 | -26,5 | -52,0 | 11,4 |
| Total comprehensive income after tax | 14,3 | 34,7 | 201,3 | 207,2 |
| Profit/loss for the year, attributable to: | ||||
| Owners of the company | 55,7 | 62,3 | 255,6 | 197,9 |
| Non-controlling interests | -0,2 | -1,1 | -2,3 | -2,1 |
| Total comprehensive income for the year, attributable to: Owners of the company |
14,9 | 36,2 | 204,2 | 209,0 |
| Non-controlling interests | -0,6 | -1,5 | -2,9 | -1,8 |
| Average number of shares before dilution | 23 908 198 | 23 883 935 | 23 894 198 | 23 906 145 |
| Average number of shares after dilution | 24 083 935 | 24 083 935 | 24 083 935 | 24 083 935 |
| Earnings per share before dilution, SEK | 2,32 | 2,56 | 10,60 | 8,19 |
| Earnings per share after dilution, SEK | 2,30 | 2,54 | 10,52 | 8,13 |
| Amounts in SEKm | 31 Dec | 31 Dec |
|---|---|---|
| unless otherwise stated | 2020 | 2019 |
| ASSETS | ||
| Intangible assets | 1 027,1 | 1 085,0 |
| Tangible assets | 378,9 | 388,9 |
| Financial assets | 110,4 | 102,3 |
| Deferred tax assets | 6,5 | 0,8 |
| Other non-current assets | 15,7 | 21,4 |
| Total non-current assets | 1 538,6 | 1 598,4 |
| Inventories | 392,4 | 382,5 |
| Trade receivables | 268,8 | 273,5 |
| Receivables for on-going construction contracts | 21,4 | 51,5 |
| Tax assets | 5,4 | 1,5 |
| Other receivables | 32,7 | 32,0 |
| Cash and cash equivalents | 604,3 | 196,9 |
| Total current assets | 1 325,0 | 937,9 |
| TOTAL ASSETS | 2 863,6 | 2 536,2 |
| EQUITY AND LIABILITIES | ||
| Share capital | 24,1 | 30,0 |
| Treasury shares | - | -15,6 |
| Reserves | 10,5 | 61,9 |
| Retained earnings including profit for the year | 1 372,2 | 1 119,2 |
| Equity attributable to owners of the Company | 1 406,8 | 1 195,5 |
| Non-controlling interests | 11,2 | 14,1 |
| Total equity | 1 418,0 | 1 209,6 |
| Non-current interest-bearing liabilities | 801,3 | 762,7 |
| Other non-current liabilities | 32,9 | 43,2 |
| Provisions | 5,3 | 5,8 |
| Deferred tax liabilities | 102,4 | 91,1 |
| Total non-current liabilities | 943,6 | 902,8 |
| Current interest-bearing liabilities | 41,3 | 44,2 |
| Trade payable | 151,9 | 130,1 |
| Payables for on-going construction contracts | 19,1 | 20,3 |
| Tax liabilities | 19,9 | 5,7 |
| Other current liabilities | 271,6 | 223,4 |
| Total current liabilites | 501,9 | 423,8 |
| TOTAL EQUITY AND LIABILITES | 2 863,6 | 2 536,2 |
| Specification of changes in equity (SEKm) | 12M 2020 | 12M 2019 |
|---|---|---|
| Equity attributable to owners of the Company | ||
| Opening balance | 1 195,5 | 1 090,0 |
| Total comprehensive income | 204,2 | 209,0 |
| Transactions with non-controlling interest | 0,0 | 0,0 |
| Dividend | 0,0 | -95,5 |
| Repurchase of treasury shares | 0,0 | -14,8 |
| Provision for long-term incentive programs | 7,5 | 6,9 |
| Organizational changes | -0,4 | 0,0 |
| Closing balance | 1 406,8 | 1 195,5 |
| Equity attributable to non-controlling interest | ||
| Opening balance | 14,1 | 15,6 |
| Total comprehensive income | -2,9 | -1,8 |
| Acquisitions | 0,0 | 0,3 |
| Dividend | 0,0 | -0,7 |
| Shareholder contribution | 0,0 | 0,6 |
| Transactions with the Group's owners | 0,0 | 0,0 |
| Closing balance | 11,2 | 14,1 |
| SUM TOTAL EQUITY, CLOSING BALANCE | 1 418,0 | 1 209,6 |
| Amounts in SEKm | ||||
|---|---|---|---|---|
| unless otherwise stated | Q4 2020 | Q4 2019 | 12 2020 | 12M 2019 |
| Operating activities | ||||
| Operating profit (EBIT) | 64,8 | 62,3 | 337,1 | 260,3 |
| Adjustment for non-cash items etc | 34,8 | 32,7 | 88,5 | 89,7 |
| Interest received | 2,0 | 0,1 | 2,6 | 0,8 |
| Interest paid | -4,6 | -6,0 | -19,1 | -22,4 |
| Dividends received | -0,8 | 0,9 | 23,4 | 18,9 |
| Income tax paid/received | -27,8 | -12,0 | -48,8 | -40,5 |
| Cash flow from operating activities | ||||
| before changes in working capital | 68,3 | 78,0 | 383,6 | 306,8 |
| Changes in working capital | ||||
| Increase (-)/Decrease (+) in inventories | -1,7 | -13,4 | -21,7 | -4,9 |
| Increase (-)/Decrease (+) in operating receivables | 239,3 | 252,1 | 23,7 | 11,3 |
| Increase (+)/Decrease (-) in operating liabilities | -122,5 | -162,6 | 76,7 | -1,0 |
| Cash flow from operating activities | 183,4 | 154,2 | 462,3 | 312,2 |
| Investing activities | ||||
| Acquisition of intangible fixed assets | 0,0 | -14,5 | -0,1 | -19,5 |
| Acquisition of tangible fixed assets | -19,8 | -7,9 | -55,0 | -45,3 |
| Divestments of tangible fixed assets | 0,0 | 0,2 | 0,0 | 1,6 |
| Acquisition of business, net cash impact | 0,0 | 0,0 | 0,0 | -48,6 |
| Acquisition of participations in associated companies | -0,5 | 2,8 | -4,7 | -31,2 |
| Divestments of participations in associated companies | 0,0 | 1,0 | 0,0 | 1,0 |
| Change in other financial assets | -2,3 | 0,0 | 4,5 | 0,0 |
| Cash flow from investing activities | -22,7 | -18,3 | -55,3 | -142,0 |
| Financing activities | ||||
| Amortization of loans | -28,4 | -72,7 | -66,5 | -340,2 |
| Proceeds from loans | 0,0 | 3,6 | 75,0 | 370,5 |
| Purchase of own shares | 0,0 | 0,0 | 0,0 | -14,8 |
| Dividend | 0,0 | 0,0 | 0,0 | -95,5 |
| Dividend paid to non-controlling interests | 0,0 | 0,0 | 0,0 | -0,7 |
| Cash flow from financing activities | -28,4 | -68,5 | 8,5 | -80,0 |
| Cash flow for the period | 132,3 | 67,3 | 415,4 | 90,1 |
| Cash and cash equivalents at the beginning of the period | 476,4 | 131,7 | 196,9 | 105,6 |
| Exchange-rate differences in cash and cash equivalents | -4,4 | -2,1 | -8,0 | 1,1 |
| Cash and cash equivalents at the end of the period | 604,3 | 196,9 | 604,3 | 196,9 |
| Amounts in SEKm | ||||
|---|---|---|---|---|
| unless otherwise stated | Q4 2020 | Q4 2019 | 12M 2020 | 12M 2019 |
| Net sales | 6,5 | 0,0 | 6,5 | 0,0 |
| Gross profit/loss | 6,5 | 0,0 | 6,5 | 0,0 |
| Administrative expenses | -27,0 | 0,0 | -31,5 | -0,3 |
| Operating profit/loss (EBIT) | -20,6 | -0,1 | -25,1 | -0,5 |
| Result from financial items | ||||
| Result from shares in subsidiaries | 0,0 | 0,0 | 0,0 | 35,0 |
| Other financial items | 9,3 | 4,5 | 3,7 | -8,2 |
| Net finance items | 9,3 | 4,5 | 3,7 | 26,8 |
| Result after financial items | -11,3 | 4,5 | -21,4 | 26,3 |
| Appropriations | 20,4 | 83,2 | 20,4 | 83,2 |
| Profit before tax | 9,1 | 87,7 | -1,0 | 109,5 |
| Tax | -1,9 | -18,8 | 0,1 | -16,0 |
| Profit/loss after tax | 7,2 | 68,8 | -0,9 | 93,4 |
| Other comprehensive income | 0,0 | 0,0 | 0,0 | 0,0 |
| Comprehensive income for the period | 7,2 | 68,8 | -0,9 | 93,4 |
| Amounts in SEKm | 31 Dec | 31 Dec |
|---|---|---|
| unless otherwise stated | 2020 | 2019 |
| ASSETS | ||
| Shares in subsidiaries | 889,0 | 889,0 |
| Total non-current assets | 889,0 | 889,0 |
| Other current receivables from Group companies | 148,4 | 246,6 |
| Current tax assets | 21,6 | 0,0 |
| Other short-term receivables | 2,1 | 2,6 |
| Cash and cash equivalents | 530,7 | 129,3 |
| Total current assets | 703,0 | 378,5 |
| TOTAL ASSETS | 1 591,9 | 1 267,4 |
| EQUITY AND LIABILITIES | ||
| Share capital | 24,1 | 0,1 |
| Retained earnings including profit for the year | 641,2 | 644,4 |
| Total equity | 665,3 | 644,5 |
| Untaxed reserves | 91,0 | 104,8 |
| Long-term liabilities to credit institue | 365,7 | 297,1 |
| Total non-current liabilities | 365,7 | 297,1 |
| Trade payable | 0,3 | 0,0 |
| Short-term liabilities to Group companies | 459,9 | 218,3 |
| Tax liabilities | 1,0 | 0,8 |
| Other current liabilities | 8,5 | 2,0 |
| Total current liabilites | 469,9 | 221,0 |
| TOTAL EQUITY AND LIABILITES | 1 591,9 | 1 267,4 |
The year-end report is presented in accordance with IAS 34 "Interim Financial Reporting", which has been approved by the EU. Since the merger, the group has applied the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Board's recommendation RFR 1 Supplementary Accounting Rules for Corporate Groups. Upon the merger, the Danish parent company was merged into a Swedish subsidiary, which is now the parent company in the group. The merger had no effect on the Group's financial position or profit and loss.
The Group applies IFRS (International Financial Reporting Standards), which have been adopted by the EU. In addition to the financial statements, disclosures in accordance with IAS 34.16A are also presented in other parts of the year-end report. The accounting policies applied by the Group correspond to the accounting policies applied in the preparation of the most recent annual report. Complete accounting principles will be presented for the parent company in the forthcoming annual report.
The financial statements are presented in SEK, rounded off to the nearest hundred thousand, unless otherwise stated. This rounding off process may mean that the total sum of the sub-items in one or more rows or columns does not match the total sum for the row or column.
The Group presents certain financial measures in the year-end report which are not defined according to IFRS. The Group considers these measures to provide valuable supplementary information for investors and the Company's management as they enable the assessment of relevant trends. Nordic Waterproofing'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 year-end report are presented in the section "Definitions; Key performance indicators not defined according to IFRS".
Nordic Waterproofing's business is significantly affected by seasonal variations in the construction industry, where almost 60 percent of annual sales generally occur during the second and third quarters. The weakest period is the first quarter of the year, which, due to the winter, has accounted for approximately one-fifth of annual sales for the past three financial years. There is generally a planned inventory build-up, primarily of finished products, during the first six months of the year, which translates into a stock reduction during the third and fourth quarters as a result of increased activity in the market during the autumn. Veg Tech is the most weather dependent and also the most seasonal business, as deliveries and installation rarely take place during the winter months.
Nordic Waterproofing's business is subject to various risks, which can be divided into operating, financial and external risks. Operating risks include liability under warranties and product liability, key employees, disruptions in production, IT systems, intellectual property rights, product development, restructuring, acquisitions and integration, insurance, and corporate governance. Financial risks primarily include changes in exchange rates and interest rates, and risks relating to losses in respect of accounts receivable, liquidity risk, the capacity to raise capital, financial credit risk and risks relating to goodwill. External risks include risks relating to market trends, competition, prices of raw materials, political decisions, legal disputes, tax risks, environmental risks and weather conditions. Apart from these risks, the recent development with the Covid-19 pandemic having an impact on the economies in our markets, our customers and the construction business is a risk and an uncertainty for the development of our business.
The management of risk at Nordic Waterproofing is based on a structured process for continually identifying and assessing risks, their likelihood and their potential impact on the Group. The focus is on identifying controllable risks and managing the risks to reduce the overall risk level for the business. The risks are described in the Group's 2019 Annual Report.
Other than these risks and uncertainties, no significant additional risks or uncertainties have arisen.
The Group's intangible assets have primarily arisen in connection with business acquisitions. Other intangible assets primarily include capitalized expenses for software and R&D-projects.
| Intangible assets, carrying amounts | Customer | |||
|---|---|---|---|---|
| SEKm, unless otherwise stated | Goodwill | relations | Other | Total |
| Opening balance, 1 January 2020 | 952 | 92 | 41 | 1085 |
| Investments | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 |
| Reclassification | 0 | 0 | 1 | 1 |
| Amortization | 0 | -20 | -10 | -30 |
| Exchange-rate differences | -25 | -2 | -1 | -29 |
| Closing balance, 31 December 2020 | 926 | 70 | 31 | 1 027 |
Financial instruments measured at fair value in the balance sheet consist of financial derivatives used to hedge the price risk arising from highly probable future purchases of bitumen products. These are recognized in the balance sheet items "Other receivables" and "Other liabilities", and hedge accounting is applied. The fair value of these commodity derivatives has been established through a discount of the difference between the agreed price and future prices at the reporting date for the remaining contract period. As of 31 Decemberr 2020, hedges were in place for Q1– Q2 2021. The expected purchases of bitumen for delivery during January 2021 to June 2021 were hedged by means of derivatives, equivalent to 19,000 tons or approximately 46 percent of the expected annual purchasing volume 2021. At the corresponding period the preceding year, the expected purchases of bitumen for delivery during January to March and October to December 2020 were hedged by means of derivatives, equivalent to 15,400 tons or approximately 39 percent of the expected annual purchasing volume. The fair value measurements belong to level 2 in the fair value hierarchy in IFRS 13.
| Carrying amount | Fair value | ||||
|---|---|---|---|---|---|
| Financial instruments | 30 Dec | 30 Dec | 30 Dec | 30 Dec | |
| SEKm, unless otherwise stated | 2020 | 2019 | 2020 | 2019 | |
| Measurement level 2: | |||||
| Assets at fair value | 0 | 3 | 0 | 3 | |
| Assets at amortized cost | 331 | 370 | 331 | 370 | |
| Liabilities at fair value | 2 | 0 | 2 | 0 | |
| Liabilities at amortized cost | 1 068 | 891 | 1 068 | 891 | |
| Measurement level 3: | |||||
| Liabilities at amortized cost | 3 | 15 | 3 | 15 | |
| Liabilities at fair value | 31 | 34 | 31 | 34 |
Nordic Waterproofing's business and the basis for division into segments are the various products or services delivered by each segment. The Group's operating segments consist of Products & Solutions and Installation Services. Products & Solutions relates to sales of both internally produced and externally purchased products and related services, and Installation Services comprises the Group's wholly owned and partly-owned contracting operations within roofing. Group Items and Eliminations comprises parent company functions, including the treasury function, as well as the elimination of intra-group sales from Products & Solutions to Installation Services.
Information regarding net sales from external customers, EBITDA and operating profit (EBIT) broken down by segment is set out in the tables on pages 9 - 10.
Inter-segment transfer pricing is determined on an arm's length basis, i.e. between parties that are independent of one another, are well informed and have an interest in the implementation of the transaction. Assets and investments are reported based on where the assets are located.
| Products & Solutions | Installation Services | Group Items and Eliminations |
Nordic Waterproofing Group |
|||||
|---|---|---|---|---|---|---|---|---|
| Amounts in SEKm | ||||||||
| unless stated otherwise | 12M 2020 12M 2019 12M 2020 12M 2019 12M 2020 12M 2019 12M 2020 12M 2019 | |||||||
| Revenues from external customers | 2 470 | 2 255 | 833 | 866 | 0 | 0 | 3 303 | 3 122 |
| Revenues from other segments | 101 | 103 | 0 | 0 | -101 | -103 | 0 | 0 |
| Revenues, total | 2 570 | 2 358 | 833 | 866 | -101 | -103 | 3 303 | 3 122 |
| EBITDA | 412 | 332 | 86 | 74 | -44 | -36 | 455 | 371 |
| Depreciation & Amortisation | -97 | -93 | -16 | -15 | -4 | -3 | -118 | -110 |
| Operating profit (EBIT) | 315 | 239 | 70 | 60 | -48 | -38 | 337 | 260 |
| Net finance items | -16 | -28 | ||||||
| Profit/loss after finance items but before tax (EBT) | 321 | 233 | ||||||
| Tax | -68 | -37 | ||||||
| Profit/loss for the year | 253 | 196 | ||||||
| Assets | ||||||||
| Intangible assets (goodwill & customer relations) | 898 | 940 | 123 | 128 | 7 | 17 | 1 027 | 1 085 |
| Property, plant and equipment | 345 | 355 | 30 | 29 | 4 | 5 | 379 | 389 |
| Participations in associated companies | 0 | 0 | 99 | 91 | 0 | 0 | 99 | 91 |
| Inventory | 384 | 377 | 8 | 6 | 0 | 0 | 392 | 383 |
| Other assets | 288 | 309 | 97 | 98 | -46 | -28 | 339 | 378 |
| Non-allocated assets | 627 | 210 | 627 | 210 | ||||
| Total assets | 1 914 | 1 981 | 357 | 353 | 593 | 204 | 2 864 | 2 536 |
| Liabilities and Equity | ||||||||
| Equity | 1 418 | 1 210 | 1 418 | 1 210 | ||||
| Other liabilities | 380 | 329 | 100 | 89 | -31 | -38 | 448 | 380 |
| Non-allocated liabilities | 998 | 947 | 998 | 947 | ||||
| Total liabilities and equity | 380 | 329 | 100 | 89 | 2 385 | 2 118 | 2 864 | 2 536 |
| Investments in tangible & intangible assets | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
The Group has related party relationships with the associated companies as stated in Note 16 of the 2019 Annual Report. Transactions with related parties are priced on market terms. No transactions have taken place between Nordic Waterproofing and related parties that have materially affected the Group's financial position and results in the fourth quarter of 2020. As also stated in Note 16 of the 2019 Annual Report, the Group has transactions with key persons in management positions. These transactions comprise salaries, benefits and pension commitments, as well as participation in the Group's incentive programs.
During the year, the parent company Nordic Waterproofing A/S, Corporate ID No 33395361, has been merged with the subsidiary Nordic Waterproofing Holding AB, Corporate ID No 556839-3168, which is now the parent company in the Group. The downstream merger is reported according to the group value method. Income statement and balance sheet in the previous parent company are included as per 2020-12-31 in Nordic Waterproofing Holding AB's income statement and balance sheet. The income statement and balance sheet of the previous parent company Nordic Waterproofing Holding A/S as of the merger date on 27th of November 2020 are shown below.
| Amounts in SEKm | 2020-11-27 |
|---|---|
| Net sales | 5,8 |
| Administrative expenses | -10,7 |
| Operating profit/loss (EBIT) | -4,9 |
| Profit/loss before tax | -4,9 |
| Tax | 0,0 |
| Profit/loss after tax | -4,9 |
| Other comprehensive income | 0,0 |
| Comprehensive income for the period | -4,9 |
| Shares in subsidiaries | 472,8 |
|---|---|
| Total non-current assets | 472,8 |
| Other current receivables from Group companies | 12,1 |
| Current tax assets | 5,4 |
| Total current assets | 17,5 |
| TOTAL ASSETS | 490,3 |
| EQUITY AND LIABILITIES | |
| Equity including profit/loss for the year | 490,1 |
| Total equity | 490,1 |
| Other current liabilities | 0,2 |
| Total current liabilities | 0,2 |
| TOTAL EQUITY AND LIABILITIES | 490,3 |
Earnings per share Profit after tax for the period attributable to parent company shareholders divided by the average number of outstanding shares for the period
| Capital employed | Total assets less non-interest-bearing provisions and liabilities |
|---|---|
| EBIT | Operating profit |
| EBIT margin | EBIT as a percentage of net sales |
| EBITDA | Operating profit before depreciation, amortization and impairment of tangible and intangible assets |
| EBITDA margin | Operating profit before depreciation, amortization and impairment of tangible and intangible assets as a percentage of net sales |
| Equity/assets ratio | Shareholders' equity, including non-controlling interests, as a percentage of total assets |
| Gross margin | Gross profit as a percentage of net sales |
| Interest cover ratio | Profit after net financial items plus interest expenses in relation to interest expenses |
| Interest-bearing net debt* | Interest-bearing liabilities less cash and cash equivalents |
| Interest-bearing net debt/EBITDA* | Net interest-bearing debt in relation to EBITDA |
| Net debt* | Interest-bearing and non-interest-bearing liabilities less cash and cash equivalents |
| Net debt/EBITDA | Net debt in relation to EBITDA |
| Net debt/equity ratio | Net debt in relation to shareholders' equity |
| Operating cash conversion* | Cash flow from operating activities as a percentage of EBITDA |
| Organic growth | Net sales growth adjusted for enterprises acquired and sold off and any exchange rate changes. No adjustments have been made for number of working days |
| R12 | The most recent twelve months/rolling twelve-month period |
| R4Q/4 | Average value of the latest four quarter's closing balance |
| Return on capital employed* | EBIT as a percentage of average capital employed, calculated as the average of the last four quarter's closing balances |
| Return on capital employed excluding goodwill* |
Operating profit (EBIT) as a percentage of average capital employed, excluding goodwill, calculated as the average of the latest four quarter's closing balances |
| Return on shareholders' equity | Profit after tax attributable to parent company shareholders as a percentage of average shareholders' equity, excluding non-controlling interests |
* Key performance indicators marked with * are either new or has a changed definition compared to the Full Year report 2019 and Annual report 2019
| Q4 2020 | Q4 2019 | 12M 2020 | 12M 2019 | |
|---|---|---|---|---|
| Capital employed | ||||
| Total assets | 2 864 | 2 536 | 2 864 | 2 536 |
| Other non-current liabilities | -33 | -43 | -33 | -43 |
| Provisions | -5 | -6 | -5 | -6 |
| Deferred tax liabilities | -102 | -91 | -102 | -91 |
| Trade payable | -152 | -130 | -152 | -130 |
| Payables for on-going construction contracts | -19 | -20 | -19 | -20 |
| Tax liabilities | -20 | -6 | -20 | -6 |
| Other current liabilities | -272 | -223 | -272 | -223 |
| Capital employed | 2 261 | 2 016 | 2 261 | 2 016 |
| EBITDA | ||||
| EBIT | 65 | 62 | 337 | 260 |
| Depreciation | 24 | 24 | 97 | 91 |
| Amortization | 5 | 5 | 21 | 19 |
| Impairment | - | - | - | - |
| EBITDA | 93 | 91 | 455 | 371 |
| Interest cover ratio | ||||
| Profit/loss before tax | 72 | 64 | 321 | 233 |
| Interest expenses | 5 | 6 | 23 | 25 |
| Total | 77 | 70 | 344 | 257 |
| Interest expenses | 5 | 6 | 23 | 25 |
| Interest cover ratio, multiple | 15,2x | 10,8x | 15,0x | 10,4x |
| Interest-bearing net debt | ||||
| Non-current interest-bearing liabilities | 803 | 763 | 803 | 763 |
| Current interest-bearing liabilities | 39 | 44 | 39 | 44 |
| Minus: Cash and cash equivalents | -604 | -197 | -604 | -197 |
| Interest-bearing net debt | 238 | 610 | 238 | 610 |
| Net debt | ||||
| Non-current interest-bearing liabilities | 803 | 763 | 803 | 763 |
| Non-current non-interest-bearing liabilities | 33 | 43 | 33 | 43 |
| Current interest-bearing liabilities | 39 | 44 | 39 | 44 |
| Current non-interest-bearing liabilities | 3 | 12 | 3 | 12 |
| Minus: Cash and cash equivalents | -604 | -197 | -604 | -197 |
| Net debt | 274 | 665 | 274 | 665 |
| Return on capital employed (ROCE) | ||||
| EBIT (R12) | 337 | 260 | ||
| Average capital employed (R4Q/4) | 2 168 | 2 020 | ||
| Return on capital employed (ROCE), % | n/a | n/a | 15,6% | 12,9% |
| Return on capital employed (ROCE) excl goodwill | ||||
| EBIT (R12) | 337 | 260 | ||
| Average capital employed (R4Q/4) | 2 168 | 2 020 | ||
| Goodwill (R4Q/4) | 954 | 960 | ||
| Return on capital employed (ROCE) excl goodwill, % | n/a | n/a | 27,8% | 24,5% |
| Return on shareholders' equity | ||||
| Profit after tax attribuatble to parent company shareholders (R12) | 256 | 198 | ||
| Average shareholders' equity ((OB+CB)/2) | 1 301 | 1 143 | ||
| Return on shareholders' equity, % | n/a | n/a | 19,6% | 17,3% |
Nordic Waterproofing is one of the leading providers in the waterproofing market in northern Europe. The Company provides high-quality products and solutions for waterproofing in Sweden, Finland, Denmark, Norway, Belgium, the Netherlands, Poland, the United Kingdom and Germany. Nordic Waterproofing also provides installation services through wholly owned subsidiaries In Finland and through part-owned franchise companies in Denmark. The Company markets its products and solutions under several brands, all with an extensive heritage, most of which are among the most established and well-recognized brands in waterproofing in their respective markets, such as Mataki, Trebolit, Phønix Tag Materialer, Kerabit, Nortett, SealEco, Distri Pond, SPT-Painting, Taasinge Elementer, RVT and Veg Tech. Nordic Waterproofing Holding AB is listed in the Mid Cap segment on Nasdaq Stockholm with the stock ticker NWG.
Nordic Waterproofing develops, manufactures and distributes a full range of products and solutions for the protection of buildings and infrastructure.
Our products are characterized by high-quality design adapted to local climate conditions and building standards. Ease of installation, energy and environmental optimization are key components of our offer.
Our excellence in customer service builds on smart logistics, understanding our customers' present and future needs, and the exceptional responsiveness delivered by our team of highly motivated employees.
| Annual report | 6 April 2021 |
|---|---|
| Interim report, January-March 2021 | 27 April 2021 |
| Annual General Meeting | 29 April 2021 |
| Interim report, January-June 2021 | 20 July 2021 |
| Interim report, January-September 2021 | 2 November 2021 |
| Martin Ellis, President and CEO | phone: +45 31 21 36 69 |
|---|---|
| Per-Olof Schrewelius, CFO & Investor Relations | phone: +46 707 82 79 58 |
This information is information that Nordic Waterproofing Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 9 February 2021, 08:00 a.m. CET.
This report contains forward-looking statements which are based on the current expectations of the management of Nordic Waterproofing. Even though management believes that the expectations reflected in these forwardlooking statements are reasonable, no assurances can be given that these expectations will be realized. Therefore, the financial results may differ significantly from those indicated in the forward-looking statements due to, among other things, changes in economic, market-related and competition-related conditions, changes to rules and regulations and other governmental measures, exchange rate fluctuations and other factors.
The English version is a translation of the Swedish original. In the event of any differences, the Swedish version applies.
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