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

Strong recovery and strict cost control

Increased profitable growth thanks to strong recovery and strict cost control.

Group

Demand was favorable in most of the Group’s customer segments and geographic regions during the first quarter. Order bookings and sales increased both sequentially compared with the fourth quarter and compared with the year-earlier period. The operating margin improved significantly thanks to a competitive cost base and a favorable product and segment mix. Combined, this led to the strongest results in the Group’s history. Our cash flow was also stronger than in previous first quarters and was positively impacted by our continued strict control of working capital.

Although the pandemic did not have a significant impact on our customers or on demand levels for the Group during the quarter, it did affect our way of working as our employees continued to work from home and travel remained limited, which also contributed to lower overheads. We are prepared to take action should we face any indirect effects of the pandemic, such as rising raw material and freight costs or component shortages among customers.

Subsidiaries

Lesjöfors increased both its order bookings and sales during the quarter, and production was in full swing in order to meet demand. The largest increase was reported in the Chassis Springs business area, driven by higher demand among end customers and a build-up of inventory among customers after a colder winter. Order bookings also increased in most geographic regions in the Industry business area, with Asia accounting for the largest increase.

Habia Cable’s order bookings and sales recovered compared with the preceding quarter, mainly among industrial customers. Combined with lower costs, a positive product mix in project sales and telecom resulted in a significantly improved operating margin during the quarter.

Beijer Tech also noted favorable demand in most customer segments during the quarter, and both order bookings and sales increased organically, mainly in the Fluid Technology business area and in Norway. Acquisitions also contributed to profitable growth.

Acquisitions

During the quarter, we continued our efforts to identify suitable new acquisitions in order to pursue profitable growth. Two new companies were acquired by Beijer Tech in early April: Noxon, which strengthens Beijer Tech’s offering in fluid technology and water treatment, and Novosystems, which complements the INU group geographically and will enable growth in building automation.

Although the pandemic is still not over, some of the uncertainty that dominated many of our markets has subsided, and we noted continued favorable demand early in the second quarter.

Henrik Perbeck, President and CEO

1,283

Net revenues increased to MSEK 1,283 (1,217).

215

Operating profit rose to MSEK 215 (147).

16.7%

Operating margin rose to 16.7 percent (12.0).

208

Profit after net financial items increased to MSEK 208 (136).

2.73

Earnings per share rose to SEK 2.73 (1.78).

1,330

Order bookings rose to MSEK 1,330 (1,184).

Invoicing (MSEK)

Profit after net financial items (MSEK)

Beijer Alma in brief

Order bookings rose 12 percent to MSEK 1,329 (1,184) during the quarter. The increase comprised 16 percent organic growth and 2 percent growth from acquisitions minus 6 percent due to negative currency effects. Net revenues increased 5 percent to MSEK 1,283 (1,217). The increase comprised 8 percent organic growth and 2 percent growth from acquisitions minus 5 percent due to negative currency effects.

Operating profit amounted to MSEK 215 (146) and profit after net financial items to MSEK 208 (136). Government grants and reductions in social security contributions were only utilized to a limited extent – a total of approximately MSEK 2 – outside Sweden. Earnings per share increased to SEK 2.73 (1.78). At the end of the first quarter, the equity ratio was 51.3 percent (47.6) and the net debt/equity ratio was 28.1 percent (38).

Cash flow from operating activities amounted to MSEK 80 (58), which meant that the increase in working capital was more than adequately offset by the higher cash flow from operating activities. Cash flow after capital expenditures, excluding corporate acquisitions, amounted to MSEK 51 (6). A dividend of SEK 3 per share, totaling MSEK 180.7, was paid to the shareholders during the quarter, while the dividend of SEK 2.50 per share for the preceding year, totaling MSEK 151, was paid in the second quarter of 2020.

The number of employees during the period amounted to 2,685 (2,702).

Equity ratio

51.3%

Net debt/equity ratio

28.1%

Number of employees

2,685

Lesjöfors in brief

Order bookings rose to MSEK 818 (673) during the quarter, corresponding to an increase of 21 percent. The increase comprised 29 percent organic growth minus 8 percent due to negative currency effects. Net revenues amounted to MSEK 778 (726), corresponding to an increase of 7 percent. In organic terms, adjusted for negative currency effects of 7 percent, the increase was 14 percent. Operating profit in the first quarter rose to MSEK 172 (123).

Net revenues for Industry amounted to MSEK 554 (538) during the quarter, corresponding to an increase of 3 percent. Demand was favorable in most markets, with the largest increase noted in Asia. The company’s production capacity has increased and its staffing returned to a normal level.

For Chassis Springs, a normal seasonal effect combined with a build-up of inventory after a colder winter than in the preceding year contributed to an increase in both net revenues and order bookings in the first quarter. In addition to higher demand directly from end customers, Lesjöfors was impacted by a build-up of inventory among wholesalers to meet this demand. Net revenues amounted to MSEK 224 (187) during the quarter, corresponding to an increase of 19 percent.

Read more about Lesjöfors

Operating profit, MSEK

172

Industry, net revenues, MSEK

554

Chassis Springs, net revenues, MSEK

224

Habia Cable in brief

Habia’s order bookings declined to MSEK 198 (239) during the quarter, corresponding to a decrease of 17 percent. In organic terms, adjusted for negative currency effects of 5 percent, the decrease was 11 percent. However, order bookings increased compared with the fourth quarter of 2020. This increased was most noticeable among industrial customers, while demand in the offshore sector remained low.

Net revenues amounted to MSEK 204 (228), corresponding to a decrease of 11 percent. The decrease comprised 6 percent organic growth and 5 percent due to negative currency effects

Habia’s operating profit increased to MSEK 26 (16) during the quarter. The earnings improvement in the first quarter was attributable to cost savings and a favorable mix of various product categories.

Read more about Habia Cable

Net revenues, MSEK

204

Operating profit, MSEK

26

Beijer Tech in brief

Order bookings rose to MSEK 314 (271) during the quarter, corresponding to an increase of 16 percent. The increase comprised 8 percent organic growth and 9 percent growth from acquisitions minus 1 percent due to negative currency effects. Net revenues rose to MSEK 301 (263) during the quarter, corresponding to an increase of 15 percent. The increase comprised 5 percent organic growth and 11 percent growth from acquisitions minus 1 percent due to negative currency effects. Operating profit during the first quarter totaled MSEK 23 (13).

Net revenues for Industrial Products rose to MSEK 182 (150). Although this increase was largely acquisition-driven, the existing operations also contributed, especially the operations in Norway.

Net revenues in Fluid Technology rose to MSEK 119 (113) due to continued favorable demand in both Sweden and Norway.

Read more about Beijer Tech

Net revenues, MSEK

301

Industrial Products, net revenues, MSEK

182

Fluid Technology net revenues, MSEK

119

Q1 in summary

2021 KV 1 2020 KV 1 Change % 2020 full-year
Net revenues, MSEK 1,282.6 1,217.1 5.4 4,249.8
Operating profit, MSEK 214.5 146.5 46.4 544.8
Operating margin, % 16.7 12.0 – 12.8
Profit after net financial items, MSEK 208.4 136.4 52.8 515.2
Earnings per share, SEK 2.73 1.78 44.00 6.58
Order bookings, MSEK 1,329.6 1,184.1 12.3 4,229.0
Net liabilities, MSEK 709.7 910.7 –22.1 572.6
Net debt/equity ratio, % 28.1 38.1 –26.2 22.9
Cash flow after capital expenditures, excl aquisitions, MSEK 51.1 –127.7 –140.0 596.1

Net revenue per segment (subsidiaries) MSEK

2021 KV 1 2020 KV 1 Change % 2020 full-year
Lesjöfors 777.9 725.8 7.2 2,448.7
Habia Cable 203.6 228.4 –10.9 804.0
Beijer Tech 301.0 262.8 14.5 997.1
Parent company and intra-group 0.1 0.1 – –
Total Group 1,282.6 1,217.1 – 4,249.8

Operating profit per segment (subsidiaries) MSEK

2021 KV 1 2020 KV 1 Change % 2020 full-year
Lesjöfors 171.8 122.6 40.1 441.2
Habia Cable 25.6 15.9 61.0 53.7
Beijer Tech 22.8 13.2 72.7 69.7
Parent company and intra-group –5.7 –5.3 – –19.9
Total 214.5 146.4 – 544.7

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