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Interim Financial Report

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January – December 2020

Despite the significant challenges related to Covid-19, including a revenue drop of nearly 45% experienced in Q2, our second half revenue rebounded to pre pandemic levels. Solid recovery in Commercial Vehicle markets and maturation of key Passenger Car programs spearheaded the improvement. Q4 revenue coming in at 463.3 MSEK was particularly encouraging. 2020 Full year performance improved by 160 basis points in adjusted EBITDA margin coming in at 8.2% versus 6.8% adjusted EBITDA margin in 2019. This improvement comes despite Q2 2020 margin at (-0.4%) versus 6.7% in Q2 2019. This performance exemplifies a strong focus on cost control, flexibility, and our ability to react quickly and convert favourably when volumes rebounded.

Major investment projects in 2020 were mainly focused on meeting capacity requirements for our new Passenger Car business, growth in Commercial Vehicle markets and new business awards. Passenger car programs have transitioned from project phase to full production mode. Investment pace will slow slightly in 2021 but again be mostly directed to meeting demand from our customer base, reducing cost and supporting new business awards.

Short-term orders remain strong despite some challenges within the global supply chain. Pent up demand from the Covid-19 decline and underlying demand related to recovering markets has impacted availability of certain commodities which is having a minor effect on our customer base. Flexibility, outstanding service, and strong execution remains in focus as our business continues to improve.

Summary of the fourth quarter of 2020

  • Net Sales amounted to SEK 463.3 million (361.0)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 58.6 million (25.9)
  • Earnings before tax (EBT) decreased to SEK -13.4 million (-12.8)
  • Profit margin before tax (EBT%) amounted to -2.9% (-3.5%)
  • Cash flow from operating activities decreased to SEK 65.6 million (66.6)
  • Net income for the period increased to SEK -4.8 million (-6.3)

Summary of 2020

  • Net Sales amounted to SEK 1,462.9 million (1,739.7)
  • Adjusted operating profit before depreciation (Adjusted EBITDA) amounted to SEK 122.3 million (118.2)
  • Earnings before taxes (EBT) decreased to SEK -55.0 million (-17.9)
  • Profit margin before tax (EBT%) amounted to -3.8% (-1.0%)
  • Cash flow from operating activities decreased to SEK 143.1 million (152.7)
  • Net income for the period decreased to SEK -40.5 million (-14.2)

Tony Nicol, Group President 
Telephone: +44 (0)755 728 67 67
E-mail: tony.nicol@leax.com
 

This information is information that LEAX Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on February 26, 2021 at 08:30 CEST

About LEAX:
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The company is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger cars, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group have a turnover of more than SEK 1,8 billion on a yearly basis.

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