Henrik Perbeck, President and CEO Henrik Perbeck, President and CEO

Strong close despite continued global uncertainty

Group

The fourth quarter was characterized by a clear recovery and favorable demand in several industrial customer segments. The second wave of the COVID-19 pandemic has not had the same impact on our customers as it did during the spring. For Beijer Alma, order bookings and sales improved, returning to the previous year’s levels. Thanks to a lower cost base and a favorable product mix, the underlying operating margin was up year-on-year. Cash flow was strong. We have maintained a high level of preparedness in the event of further changes as the uncertainty regarding the future consequences of the pandemic remains.

Subsidiaries

In Lesjöfors, order bookings were higher than in the preceding year and production was fully restored in order to respond to this increase in demand. Acquisitions carried out in the Netherlands and the UK in recent years contributed to profitable growth. Demand in Chassis Springs has normalized, with the fourth quarter marking the company’s low season.

Habia Cable continued to experience weak demand in industry and telecom during the quarter, which could not be offset by project deliveries in offshore, nuclear power and defense. A lower cost level contributed to a positive earnings trend. At the same time, the company continued to invest in new unique technical solutions and products, with applications in areas such as sustainable transportation.

Beijer Tech, which operates in the Nordic region, noted a sharp increase in demand during the quarter, which impacted its order bookings both organically and among its acquired companies. The improvement was clearest in Sweden, while Finland and Denmark remained stable. Norway continued to be the market with the slowest recovery.

Strategy and sustainability

Beijer Alma’s ambition is to continue to pursue profitable growth through acquisitions, in both related and new areas. Following a period of uncertainty, the Group is investing in organic profitable and sustainable growth in its subsidiaries. During the quarter, two solar power facilities installed on factory roofs were put into operation, generating electricity that can be used directly in production.

After a strong finish to the year, we can confirm that 2020 was a highly challenging and remarkable year. The repercussions of the slowdown in the spring can clearly be seen in the Group’s development. This was also a year without in-person meetings, which we hope will be possible to have in 2021!

Henrik Perbeck, President and CEO

1,079

Net revenues increased to MSEK 1,079 (1,061).

188

Operating profit increased to MSEK 188 (123).

17.4%

Operating margin increased to 17.4 percent (11.7).

181

Profit after net financial items amounted to MSEK 181 (119).

3.00

The Board proposes a dividend of SEK 3.00 (2.50) per share.

1,133

Order bookings to MSEK 1,133 (1,073).

Invoicing (MSEK)

Profit after net financial items (MSEK)

Beijer Alma in brief

Order bookings increased 6 percent to MSEK 1,133 (1,073) during the quarter. In organic terms – that is, excluding acquisitions and fluctuations in exchange rates – order bookings increased 1 percent compared with the preceding year. Net revenues rose 2 percent to MSEK 1,079 (1,061). In organic terms, the increase was 1 percent.

The effect on order bookings, revenues and earnings as a result of the COVID-19 pandemic was less extensive in the fourth quarter compared with previous quarters. The second wave has not forced customers to implement production cutbacks to the same extent as during the spring. The use of furlough schemes for certain employee categories in a number of operating areas decreased or ceased in many places. Government grants and reductions in social security contributions during the quarter amounted to MSEK 13, of which MSEK 3 was in Sweden and MSEK 5 pertained to full-year contributions from US authorities. All government grants have been recognized as cost reductions. Operating profit also includes other income of MSEK 19 primarily attributable to the revaluation of additional purchase considerations that have been reduced due to the impact of the COVID-19 pandemic on the earnings of acquired companies.

Operating profit amounted to MSEK 188 (123) and profit after net financial items to MSEK 181 (119), corresponding to earnings per share of SEK 2.22 (1.54). At the end of the fourth quarter, the equity ratio was 53.4 percent (53) and the net debt/equity ratio was 22.9 percent (29.9).

Cash flow from operating activities totaled MSEK 224 (210). Cash flow after capital expenditures, excluding corporate acquisitions, amounted to MSEK 210 (201).

During the year, order bookings decreased 6 percent to MSEK 4,229 (4,494). In organic terms, the decrease was 10 percent. Net revenues declined 8 percent to MSEK 4,250 (4,622) and 12 percent decline in organic terms.

Government grants and reductions in social security contributions amounted to MSEK 65, of which MSEK 25 was in Sweden.

Operating profit amounted to MSEK 545 (583) and profit after net financial items to MSEK 515 (557), corresponding to earnings per share of SEK 6.59 (7.15). During the second quarter, earnings were charged with nonrecurring costs and impairment on a fixed asset totaling MSEK 22. The fourth quarter includes other income of MSEK 19 primarily attributable to the revaluation of additional purchase considerations.

Cash flow from operating activities totaled MSEK 721 (588). Cash flow after capital expenditures, excluding corporate acquisitions, amounted to MSEK 596 (386).

The number of employees declined to 2,585 (2,708).

Equity ratio

53.4%

Net debt/equity ratio

22.9%

Number of employees

2,585

Lesjöfors in brief

Order bookings rose to MSEK 680 (625) during the quarter, corresponding to an organic increase of 4 percent. Net revenues amounted to MSEK 624 (591), corresponding to an increase of 6 percent. In organic terms, the increase was 8 percent. Operating profit in the fourth quarter increased to MSEK 149 (106). Operating profit includes the full-year effect of government grants in the US of MSEK 5 and the positive effect of revaluated additional purchase considerations of MSEK 13.

The fourth quarter saw a return to more normal operations for Industry, despite some remaining restrictions due to the COVID-19 pandemic. Net revenues in Industry amounted to MSEK 493 (464), corresponding to an increase of 6 percent.

Chassis Springs reported a slowdown in its delayed high season from the previous quarter. The company’s operations are seasonally dependent and the fourth quarter is its low season. Net revenues amounted to MSEK 132 (127), corresponding to an increase of 4 percent.

Order bookings for the year totaled MSEK 2,476 (2,535), an organic decrease of 7 percent. Net revenues amounted to MSEK 2,449 (2,564), corresponding to an organic decline of 9 percent. Net revenues decreased to MSEK 1,840 (1,923) in Industry and to MSEK 609 (641) in Chassis Springs. Operating profit totaled MSEK 441 (441).

Read more about Lesjöfors

Operating profit, MSEK

149

Industry, net revenues, MSEK

493

Chassis Springs, net revenues, MSEK

132

Habia Cable in brief

Order bookings for Habia Cable decreased 20 percent in the quarter to MSEK 155 (193). Net revenues amounted to MSEK 177 (198), corresponding to a decrease of 11 percent. Excluding fluctuations in exchange rates, the decrease was 8 percent. Habia’s operating profit totaled MSEK 14 (6). During the quarter, final invoices were issued for a number of projects that had positive margin effects.

The trend of reduced demand for projects continued, particularly within offshore, although telecom and other industry were also impacted by reduced demand. The cost reduction measures decided on in the second quarter were fully implemented during the fourth quarter.

Order bookings for the year totaled MSEK 731 (882), corresponding to a decrease of 16 percent excluding fluctuations in exchange rates. Net revenues decreased 17 percent organically to MSEK 804 (978). Habia’s operating profit for the second quarter was charged with nonrecurring costs of MSEK 16, and operating profit for the year amounted to MSEK 54 (80).

Read more about Habia Cable

Net revenues, MSEK

177

Operating profit, MSEK

14

Beijer Tech in brief

Order bookings rose to MSEK 298 (255) during the quarter, corresponding to an organic increase of 6 percent. Net revenues increased to MSEK 278 (272), corresponding to an organic decline of 8 percent. Operating profit during the quarter totaled MSEK 30 (20). Operating profit includes the positive effect of other income, primarily from the revaluation of additional purchase considerations of MSEK 6.

Net revenues increased to MSEK 159 (154) for Industrial Products and amounted to MSEK 118 (118) for Fluid Technology. The negative effects of the COVID-19 pandemic subsided for both business areas.

Order bookings for the year totaled MSEK 1,023 (1,042) and net revenues amounted to MSEK 997 (1,080). In organic terms, order bookings decreased 14 percent and net revenues declined 16 percent. Net revenues amounted to MSEK 563 (599) for Industrial Products and MSEK 434 (482) for Fluid Technology. Operating profit totaled MSEK 70 (81). Operating profit for the second quarter was charged with MSEK 6 for the impairment of certain technical equipment, and operating profit for the fourth quarter includes other income of MSEK 6.

Read more about Beijer Tech

Net revenues, MSEK

278

Industrial Products, net revenues, MSEK

159

Fluid Technology net revenues, MSEK

118

Corporate acquisitions during 2020

During the first quarter, Lesjöfors acquired all of the shares in the UK-based company Metrol Springs Ltd and, during the same period, Beijer Tech acquired all of the shares in the Swedish company PA Ventiler AB. In the third quarter, Beijer Tech acquired the Swedish company INUInvest AB, including the operations of INUstyr AB and its sister companies. The acquisition was completed through a newly formed company, BeijerInu AB, with Beijer Tech acquiring 75 percent of the shares.

Q4 in summary

2020 Q4 2019 Q4 Change % 2019 full-year
Net revenues, MSEK 1,079.1 1,060.9 1.7 4,249.8
Operating profit, MSEK 187.7 123.4 52.1 544.8
Operating margin, % 17.4 11.7 – 12.8
Profit after net financial items, MSEK 180.5 118.5 52.3 515.2
Earnings per share, SEK 2.22 1.54 44.00 6.59
Order bookings, MSEK 1,133.3 1,073.2 5.6 4,229.1
Net liabilities, MSEK 572.6 720.9 –20.6 572.6
Net debt/equity ratio, % 22.9 29.9 –23.4 22.9
Cash flow after capital expenditures, excl aquisitions, MSEK 256.4 200.6 27.8 596.1

Net revenue per segment (subsidiaries) MSEK

2020 Q4 2019 Q4 Change % 2019 full-year
Lesjöfors 624.1 590.5 5.7 2,448.7
Habia Cable 177.4 198.3 –10.5 804.0
Beijer Tech 277.7 272.0 2.1 997.1
Parent company and intra-group –0.1 0.1 – –
Total Group 1,079.1 1,060.9 – 4,249.8

Operating profit per segment (subsidiaries) MSEK

2020 Q4 2019 Q4 Change % 2019 full-year
Lesjöfors 148.6 105.8 40.5 441.2
Habia Cable 13.8 6.1 126.2 53.7
Beijer Tech 30.3 15.0 102.0 69.7
Parent company and intra-group –5.0 –3.5 – –19.8
Total 187.7 123.4 – 544.8

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