Interim report January – March 2022

NET ASSET VALUE AND THE LATOUR SHARE

• The net asset value fell to SEK 186 per share, compared with SEK 216 per share at the start of the year. This is a decrease of 13.6 per cent, adjusted for dividends. By comparison, the Stockholm Stock Exchange’s Total Return Index (SIXRX) decreased by 14.0 per cent. The net asset value was SEK 181 per share at 28 April.¹
• The total return on the Latour share was -18.8 per cent during the period measured against the SIXRX, which fell 14.0 per cent.

INDUSTRIAL OPERATIONS

• The industrial operations’ order intake rose 30 per cent to SEK 5,840 m (4,500 m), a 12 per cent increase for comparable entities adjusted for foreign exchange effects.
• The industrial operations’ net sales rose 28 per cent to SEK 5,019 m (3,924 m), which represents a 10 per cent increase for comparable entities adjusted for foreign exchange effects.
• The industrial operations’ operating profit increased by 18 per cent to SEK 669 m (569 m), which equates to an operating margin of 13.3 (14.5) per cent for continuing operations.
• Hultafors Group acquired the Swedish company Telesteps AB, Bemsiq acquired the German company Consens GmbH, Latour Industries acquired the Italian company Esse-Ti S.r.l. and Caljan acquired the Austrian company PHS Logistiktechnik GmbH. The sale of Neuffer Fenster + Türen GmbH was completed in January.

THE GROUP

• Consolidated net sales totalled SEK 5,019 m (3,987 m), and profit after financial items was SEK 1,264 m (1,344 m).
• A SEK -176 m impairment charge related to Alimak was recognised in the period’s income statement. Items impacting comparability had a favourable SEK 189 m impact on the income statement of last year’s corresponding period.
• Consolidated profit after tax was SEK 1,131 m (1,211 m), which is equivalent to SEK 1.77 (1.89) per share.
• The Group reported net debt of SEK 9,840 m (6,705 m). Net debt, excluding lease liabilities recognised under IFRS 16, was SEK 8,610 m (5,874 m) and is equivalent to 7 (5) per cent of the market value of total assets.

INVESTMENT PORTFOLIO

• The value of the investment portfolio fell by 19.5 per cent in the first quarter. The benchmark index (SIXRX) decreased by 14.0 per cent. 

EVENTS AFTER THE REPORTING PERIOD

• There were no material events subsequent to the end of the reporting period.

¹The calculation of the net asset value on 28 April was based on the value of the investment portfolio at 1 p.m. on 28 April and the same values as at 31 March were used for the unlisted portfolio.

Comments from the CEO
“It is a turbulent outside world that we need to adopt an approach to at the moment. However, despite the concerns arising from Russia’s invasion of Ukraine and the after effects of the pandemic, we are able to report a quarter that we are very happy with. Underlying demand is strong, with both order intake and net sales increasing organically.

Shortages in components, disruptions to global logistics chains and general cost inflation are placing high demands on our organisations. In addition, the year began with high sickness absence levels due to Omicron. Maintaining a high level of service for our customers is of the utmost importance and a high priority, not least in order for us to remain competitive. Despite all the challenges, our companies have done well, although at a higher cost than normal. Price increases have been implemented in various rounds and will also continue to be introduced in order to meet the further cost increases we are now witnessing.

In total, order intake has improved by 30 per cent and net sales by 28 per cent. Adjusted for acquisitions and foreign exchange effects, order intake grew by 12 per cent and invoiced sales by 10 per cent during the quarter. Profit increased to SEK 699 m (569 m) with an operating margin of 13.3 (14.5) per cent.

Russia’s invasion of Ukraine is affecting us all greatly. Latour’s exposure is not particularly great in relation to Russia, Belarus or Ukraine, and the financial impact is very modest. Hultafors Group has a factory in Ukraine with just over 270 employees, who we are supporting in any way we can – the health and safety of our employees is our absolute highest priority. We are also providing financial support to bodies such as Save the Children in Ukraine, in order to make a positive contribution.

Latour’s financial position is strong. We are a long-term and active owner that makes forward-looking investments in our companies and aims to achieve growth, regardless of short-term economic downturns or other uncertainties that may exist. However, we are following developments in the outside world closely. Our sustainability initiatives are continuing and we are working actively to contribute to a more sustainable world through the products we offer, at the same time as reducing the footprint of our own businesses.

The level of acquisition activity is high and we have completed four acquisitions during the first quarter. Hultafors Group has acquired the Swedish company Telesteps, S+S Regeltechnik within Bemsiq has acquired the German company Consens, Latour Industries has acquired the Italian company Esse-Ti and Caljan has acquired the Austrian company PHS Logistiktechnik. Read more about our acquisitions on page 4.

The geopolitical situation has had a negative impact on the stock market, which has fallen back across a broad front during the first quarter. Since the start of the year, Latour’s net asset value has fallen by 13.6 per cent to SEK 186 per share, and Latour’s investment portfolio has decreased by 19.5 per cent. By comparison, the benchmark index SIXRX has fallen by 14.0 per cent. Our listed companies that have reported to date have shown a similar trend to that of our wholly-owned industrial operations, with continued high demand yet with challenges linked to component shortages and the supply of goods. Russia’s invasion of Ukraine is affecting most of the companies, although to varying degrees. However, the highest priority for all those that have operations in Ukraine is the safety of their employees.

The AGM season is now in full swing, and the work of the nominating committee for this year has consequently been completed. As the principal owner of ten listed companies, we are proud of how well the recruitment processes have progressed and that we have been able to recruit several new, skilled Board members with relevant experience to the companies. The issue of an even gender ratio is high on the agenda, and we are very satisfied with the outcome in most of the companies, which is pleasing.”

Johan Hjertonsson
President and CEO

For further information please contact:
Johan Hjertonsson, President and CEO, Tel. +46 702-29 77 93 or
Anders Mörck, CFO, Tel. +46 706-46 52 110

Conference call
President and CEO Johan Hjertonsson and CFO Anders Mörck present the report and answers to questions by telephone today at 10.00 AM (CEST). The conference call will be held in English.

To follow the meeting, please call +46 (0)8 566 427 07.
To follow the webcast please visit our webpage, www.latour.se, or use the link:
https://onlinexperiences.com/Launch/QReg/ShowUUID=9CEFD040-0529-46E9-AB7D-F208F9F6EC42