Reporting period January - December
- Net sales increased 23.3 per cent to
SEK 21,552 (17,480) million. Organically, net sales grew 11.3 per cent. -
EBITA increased 25.7 per cent to
SEK 4,662 (3,709) million. - The EBITA margin improved 0.4 percentage points to 21.6 (21.2) per cent.
-
Earnings before tax grew 25.1 per cent to
SEK 3,842 (3,070) million. -
Net profit for the period grew 16.4 per cent to
SEK 2,828 (2,429) million. -
Earnings per share increased 16.5 per cent to
SEK 6.13 (5.26). -
Cash flow from operating activities increased 4.5 per cent to
SEK 3,069 (2,938) million. -
Twelve new businesses were consolidated during the year with assessed total annual net sales of about
SEK 1,475 million at the time they were acquired. -
Dividend per share is proposed at
SEK 1.80 (1.50) per share, corresponding toSEK 817.6 (681.3) million.
Reporting period October - December
- Net sales increased 21.2 per cent to
SEK 6,002 (4,952) million. Organically, net sales grew 9.5 per cent. -
EBITA increased 30.5 per cent to
SEK 1,322 (1,013) million. - The EBITA margin improved 1.5 percentage points to 22.0 (20.5) per cent.
-
Profit before tax grew 28.2 per cent to
SEK 1,082 (844) million. -
Net profit for the period amounted to
SEK 758 (760) million. -
Cash flow from operating activities increased 50.3 per cent to
SEK 1,538 (1,023) million.
Summary of financial performance
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Net sales | 21,552 | 17,480 | 23.3% | 6,002 | 4,952 | 21.2% |
EBITA | 4,662 | 3,709 | 25.7% | 1,322 | 1,013 | 30.5% |
EBITA margin | 21.6% | 21.2% | 0.4 | 22.0% | 20.5% | 1.5 |
Profit before tax | 3,842 | 3,070 | 25.1% | 1,082 | 844 | 28.2% |
Net profit for the period | 2,828 | 2,429 | 16.4% | 758 | 760 | -0.3% |
Earnings per share | 6.13 | 5.26 | 16.5% | 1.65 | 1.64 | 0.6% |
Return on capital employed | 22.6% | 22.5% | 0.1 | 22.6% | 22.5% | 0.1 |
Return on capital employed excl. goodwill | 135% | 162% | -27 | 135% | 162% | -27 |
COMMENTS FROM THE CEO
Lifco's primary goal is to increase its earnings every year through organic growth as well as acquisitions. Net sales increased by 23.3 per cent to
During the year, EBITA increased by 25.7 per cent to
Earnings per share during the year increased 16.5 per cent till
Cash flow from operating activities amounted to
In 2022, Lifco consolidated twelve acquisitions, of which four in the Dental business area, three in Demolition & Tools and five in Systems Solutions. The acquisitions consist of one Danish, one Finnish, two Italian, one Dutch, two Norwegian, three British and two German companies. Many of the companies are market leaders in their respective niches. The acquisitions had a positive impact on Lifco's results and financial position during the year.
In August, Lifco updated its MTN programme, increasing the framework amount from
Per Waldemarson
President and CEO
GROUP PERFORMANCE IN JANUARY - DECEMBER
Sales increased 23.3 per cent to
Twelve new businesses were consolidated during the year with assessed total annual net sales of about
EBITA increased by 25.7 per cent to
Net financial items were
Earnings before tax grew 25.1 per cent to
Average capital employed excluding goodwill increased by
The Group's net debt increased by
On
The net debt/equity ratio at
Cash flow from operating activities increased 4.5 per cent to
GROUP PERFORMANCE IN THE FOURTH QUARTER
Sales increased by 21.2 per cent to
EBITA increased by 30.5 per cent to
Net financial items were
Profit before tax grew by 28.2 per cent to
Average capital employed excluding goodwill increased by
From
Cash flow from operating activities increased 50.3 per cent to
-645 (-895) million, which was mainly attributable to acquisitions.
FINANCIAL PERFORMANCE - BUSINESS AREAS
Dental
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Net sales | 5,295 | 5,123 | 3.4% | 1,433 | 1,301 | 10.1% |
EBITA | 1,017 | 1,080 | -5.8% | 271 | 241 | 12.4% |
EBITA margin | 19.2% | 21.1% | -1.9 | 18.9% | 18.5% | 0.4 |
The companies in Lifco's Dental business area are leading suppliers of consumables, equipment and technical service to dentists across
Net sales in Dental increased by 3.4 per cent to
EBITA declined by 5.8 per cent to
In
Demolition & Tools
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Net sales | 6,285 | 4,701 | 33.7% | 1,767 | 1,329 | 33.0% |
EBITA | 1,607 | 1,261 | 27.4% | 445 | 361 | 23.3% |
EBITA margin | 25.6% | 26.8% | -1.2 | 25.2% | 27.2% | -2.0 |
The Demolition & Tools business area develops, manufactures and sells equipment for the infrastructure, demolition and construction industries. The Group is the world's leading supplier of demolition robots and crane attachments. The Group is also one of the leading global suppliers of excavator attachments. The business area's EBITA margin may fluctuate between quarters due to single, major special orders and changes to the product mix.
Net sales increased by 33.7 per cent to
During the year, EBITA increased by 27.4 per cent to
The majority of shares of the Italian company Cormidi were consolidated as of
Systems Solutions
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Net sales | 9,972 | 7,656 | 30.3% | 2,802 | 2,322 | 20.7% |
EBITA | 2,184 | 1,494 | 46.2% | 641 | 446 | 43.7% |
EBITA margin | 21.9% | 19.5% | 2.4 | 22.9% | 19.2% | 3.7 |
Through its operating units, the Systems Solutions business area operates in industries offering systems solutions. Systems Solutions is divided into five divisions: Construction Materials, Contract Manufacturing, Environmental Technology, Service and Distribution, and Forest.
Net sales in Systems Solutions increased by 30.3 per cent to
EBITA increased by 46.2 per cent in 2022, to
Construction Materials reported a healthy sales trend for the year with stable profitability, positively impacted by organic growth and acquisitions.
Contract Manufacturing reported a healthy sales trend for 2022 with improved profitability, positively impacted by organic growth and acquisitions.
Environmental Technology reported healthy sales and profitability growth for the year.
Service and Distribution reported a healthy sales trend for the year with improved profitability, positively impacted by acquisitions.
The remaining operations within the Forest division after the divestment of Hekotek had a somewhat weaker sales trend, with stable year-on-year profitability. For more information about the divestment of Hekotek in
In the Construction Materials division, the majority of shares of the Norwegian company Cenec Tavlebygg AS, which manufactures low-voltage electrical supplies, were consolidated as of
ACQUISITIONS
Lifco made the following consolidations during the year:
Consolidated from month | Acquisitions | Business area | Net sales | Employees |
January | Zenith Dental | Dental | - | |
January | Cenec Tavlebygg | Systems Solutions | 8 | |
March | Cormidi | Demolition & Tools | 45 | |
March | Specialist Alarm Services | Dental | 27 | |
May | BCC Solutions | Systems Solutions | 9 | |
July | Demolition & Tools | 105 | ||
July | Oslo Dental | Dental | 5 | |
September | Systems Solutions | 40 | ||
September | Systems Solutions | 80 | ||
November | Systems Solutions | 44 | ||
November | Medtec Medizintechnik | Dental | 20 | |
December | Prolec | Demolition & Tools | 15 | |
1 Refers to net sales in 2020. |
Further information on the acquisitions is provided on page 17. The figures for net sales and number of employees refer to estimated annual net sales and the number of employees at the acquisition date.
Taken together, the acquisitions had a positive impact on Lifco's results and financial position in 2022.
DIVESTMENT
All of the shares in the Estonian company Hekotek, which sells sawmill equipment primarily in
OTHER FINANCIAL INFORMATION
Employees
The average number of employees was 6,495 (5,995) during the year. At the end of the period, the number of employees was 6,512 (6,265). Acquisitions added about 400 employees.
Events after the end of the reporting period
Lifco announced on
Lifco announced on
Proposed dividend
The Board of Directors and Chief Executive Officer propose that the Annual General Meeting authorise the payment of a dividend of
Related party transactions
No significant transactions with related parties took place during the period.
Risks and uncertainties
The risk factors which have the biggest impact for Lifco are global macroeconomic factors, the competitive situation, structural changes in the market and general level of economic activity. Lifco is also exposed to financial risks, including currency risks, interest rate risks, credit and counterparty risks.
Lifco is monitoring developments in the conflict in
Lifco works actively to monitor and continuously evaluate sustainability-related risks and their impact on the Group's operations and results. The Group has established a governance structure that involves both Group Management and the Board and works to constantly improve the company's sustainability activities and minimize related risks. As part of this management, Group Management reviews all subsidiaries' compliance with, for example, the code of conduct, occupational injuries, IT security and legal disputes on a quarterly basis.
Accounting policies
The Group's year-end report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. In respect of the Parent Company, the report has been prepared in accordance with the Annual Accounts Act and Recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies have been applied in accordance with those which are presented in the 2021 Annual Report and should be read in conjunction with these.
The new standards or interpretations that become effective for the 2022 financial year did not otherwise have any material impact on the financial reporting.
This report has not been examined by the company's auditors.
DECLARATION OF THE BOARD OF DIRECTORS
The Board of Directors and Chief Executive Officer warrant and declare that this year-end report gives a true and fair view of the Parent Company's and Group's operations, financial positions and results, and that it describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group.
Enköping,
Ulrika DellbyDirector | ||
Director | ||
Caroline af UgglasDirector | ||
Per WaldemarsonPresident and CEO, Director |
FINANCIAL CALENDAR
The annual report for 2022 will be published in the week starting
The report for the first quarter 2023 will be published on 28 April.
The report for the second quarter 2023 will be published on 14 July.
The report for the third quarter 2023 will be published on 20 October.
ANNUAL GENERAL MEETING 2023
The Annual General Meeting of
FURTHER INFORMATION
Media and investor relations: Åse Lindskog, ir@lifco.se, telephone: +46 730 24 48 72.
ONLINE PRESENTATION
An online presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Friday,
Time: Friday, 3 February at
Link to the presentation: https://ir.financialhearings.com/lifco-q4-2022
If you wish to ask questions verbally at the telephone conference, you can register using the link below. Following registration, you will receive a telephone number and a conference ID to log in to the conference.
Link to register for the telephone conference: https://conference.financialhearings.com/teleconference/?id=5003521
LIFCO IN BRIEF
Lifco offers a safe haven for small and medium-sized businesses. Lifco's business concept is to acquire and develop market-leading niche businesses with the potential to deliver sustainable earnings growth and robust cash flows. Lifco is guided by a clear philosophy centred on long-term growth, a focus on profitability and a strongly decentralised organisation. The Group has three business areas: Dental, Demolition & Tools and Systems Solutions. At year-end, the
This information constitutes information that |
CONDENSED CONSOLIDATED INCOME STATEMENT
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Net sales | 21,552 | 17,480 | 23.3% | 6,002 | 4,952 | 21.2% |
Cost of goods sold | -12,544 | -10,150 | 23.6% | -3,440 | -2,905 | 18.4% |
Gross profit | 9,008 | 7,330 | 22.9% | 2,562 | 2,047 | 25.2% |
Selling expenses | -2,256 | -1,788 | 26.2% | -624 | -499 | 25.1% |
Administrative expenses | -2,651 | -2,249 | 17.9% | -775 | -666 | 16.4% |
Development costs | -163 | -140 | 16.4% | -47 | -38 | 23.7% |
Other income and expenses | 15 | -12 | -225% | 14 | 19 | -26.3% |
Operating profit | 3,953 | 3,141 | 25.9% | 1,130 | 863 | 30.9% |
Net financial items | -111 | -71 | 56.3% | -48 | -19 | 153% |
Profit before tax | 3,842 | 3,070 | 25.1% | 1,082 | 844 | 28.2% |
Tax | -1,014 | -641 | 58.2% | -324 | -84 | 286% |
Net profit for the period | 2,828 | 2,429 | 16.4% | 758 | 760 | -0.3% |
Profit attributable to: | ||||||
Parent Company shareholders | 2,784 | 2,390 | 16.5% | 751 | 746 | 0.7% |
Non-controlling interests | 44 | 39 | 12.8% | 7 | 14 | -50.0% |
Earnings per share before and after dilution for the period, attributable to Parent Company shareholders | 6.13 | 5.26 | 16.5% | 1.65 | 1.64 | 0.6% |
EBITA | 4,662 | 3,709 | 25.7% | 1,322 | 1,013 | 30.5% |
Depreciation of tangible assets | 454 | 393 | 15.5% | 130 | 101 | 28.7% |
Amortisation of intangible assets | 24 | 20 | 20.0% | 9 | 8 | 12.5% |
Amortisation of intangible assets arising from acquisitions | 673 | 526 | 27.9% | 179 | 142 | 26.1% |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Net profit for the period | 2,828 | 2,429 | 16.4% | 758 | 760 | -0.3% |
Other comprehensive income | ||||||
Items which can later be reclassified to profit or loss: | ||||||
Hedge of net investment | -79 | -53 | 49.1% | -20 | -18 | 11.1% |
Translation differences | 856 | 426 | 100% | 134 | 137 | -2.2% |
Tax related to other comprehensive income | 16 | 12 | 33.3% | 4 | 4 | - |
Total comprehensive income for the period | 3,621 | 2,814 | 28.7% | 876 | 883 | -0.8% |
Comprehensive income attributable to: | ||||||
Parent Company shareholders | 3,569 | 2,770 | 28.8% | 868 | 867 | 0.1% |
Non-controlling interests | 52 | 44 | 18.2% | 8 | 16 | -50.0% |
3,621 | 2,814 | 28.7% | 876 | 883 | -1.0% |
SEGMENT OVERVIEW
Lifco's operations are monitored and evaluated by the CEO and resources are allocated based on information from the three operating segments Dental, Demolition & Tools and Systems Solutions. The defined quantitative limits have been exceeded only by Dental and Demolition & Tools. One further operating segment, Systems Solutions, is presented. This operating segment consists of a merger of those divisions which have similar economic characteristics and which do not individually meet the defined quantitative limits. These divisions are Construction Materials, Contract Manufacturing, Environmental Technology, Service and Distribution and Forest.
NET SALES TO EXTERNAL CUSTOMERS
No sales are made between the segments.
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Dental | 5,295 | 5,123 | 3.4% | 1,433 | 1,301 | 10.1% |
Demolition & Tools | 6,285 | 4,701 | 33.7% | 1,767 | 1,329 | 33.0% |
Systems Solutions | 9,972 | 7,656 | 30.3% | 2,802 | 2,322 | 20.7% |
Group | 21,552 | 17,480 | 23.3% | 6,002 | 4,952 | 21.2% |
Net sales by type of income:
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Dental products | 5,295 | 5,123 | 3.4% | 1,433 | 1,301 | 10.1% |
Machinery and tools | 6,285 | 4,701 | 33.7% | 1,767 | 1,329 | 33.0% |
Construction Materials | 1,604 | 1,267 | 26.6% | 483 | 373 | 29.5% |
Contract Manufacturing | 2,034 | 1,526 | 33.3% | 614 | 502 | 22.3% |
Environmental Technology | 2,903 | 2,075 | 39.9% | 865 | 594 | 45.6% |
Service and Distribution | 2,873 | 2,023 | 42.0% | 754 | 594 | 26.9% |
Forest | 558 | 765 | -27.1% | 86 | 259 | -66.8% |
Group | 21,552 | 17,480 | 23.3% | 6,002 | 4,952 | 21.2% |
EBITA
A breakdown of results by segment is made up to and including EBITA. EBITA is reconciled to profit before tax in accordance with the following table:
TWELVE MONTHS | FOURTH QUARTER | |||||
SEK million | 2022 | 2021 | change | 2022 | 2021 | change |
Dental | 1,017 | 1,080 | -5.8% | 271 | 241 | 12.4% |
Demolition & Tools | 1,607 | 1,261 | 27.4% | 445 | 361 | 23.3% |
Systems Solutions | 2,184 | 1,494 | 46.2% | 641 | 446 | 43.7% |
-146 | -126 | 15.9% | -35 | -35 | - | |
EBITA before acquisition costs | 4,662 | 3,709 | 25.7% | 1,322 | 1,013 | 30.5% |
Acquisition costs | -36 | -42 | -14.3% | -13 | -8 | 62.5% |
EBITA | 4,626 | 3,667 | 26.2% | 1,309 | 1,005 | 30.2% |
Amortisation of intangibleassets arising from acquisitions | -673 | -526 | 27.9% | -179 | -142 | 26.1% |
Net financial items | -111 | -71 | 56.3% | -48 | -19 | 153% |
Profit before tax | 3,842 | 3,070 | 25.1% | 1,082 | 844 | 28.2% |
CONDENSED CONSOLIDATED BALANCE SHEET
SEK million | ||
ASSETS | ||
Intangible assets | 18,286 | 15,497 |
Tangible assets | 2,364 | 2,052 |
Financial assets | 365 | 320 |
Inventories | 3,682 | 2,821 |
Accounts receivable - trade | 2,853 | 2,257 |
Current receivables | 518 | 420 |
Cash and cash equivalents | 1,703 | 1,509 |
TOTAL ASSETS | 29,771 | 24,876 |
EQUITY AND LIABILITIES | ||
Equity | 13,339 | 10,756 |
Non-current interest-bearing liabilities incl. pension provisions | 1,725 | 3,228 |
Other non-current liabilities and provisions | 4,053 | 3,144 |
Current interest-bearing liabilities | 6,608 | 3,737 |
Accounts payable - trade | 1,449 | 1,294 |
Other current liabilities | 2,597 | 2,717 |
TOTAL EQUITY AND LIABILITIES | 29,771 | 24,876 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to Parent Company shareholders |
SEK million | ||
Opening equity | 10,645 | 8,614 |
Comprehensive income for the period | 3,569 | 2,770 |
Change in value, owner transactions | -295 | -194 |
Dividend | -681 | -545 |
Closing equity | 13,238 | 10,645 |
Equity attributable to: | ||
Parent Company shareholders | 13,238 | 10,645 |
Non-controlling interests | 101 | 111 |
13,339 | 10,756 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
TWELVE MONTHS | FOURTH QUARTER | |||
SEK million | 2022 | 2021 | 2022 | 2021 |
Operating activities | ||||
Operating profit | 3,953 | 3,141 | 1,130 | 863 |
Depreciation of right-of-use assets | 211 | 173 | 59 | 46 |
Other non-cash items | 940 | 766 | 259 | 205 |
Interest and financial items, net | -111 | -71 | -48 | -19 |
Tax paid | -911 | -684 | -265 | -146 |
Cash flow before changes in working capital | 4,082 | 3,325 | 1,135 | 949 |
Changes in working capital | ||||
Inventories | -737 | -627 | 290 | -89 |
Current receivables | -429 | -463 | 135 | -61 |
Current liabilities | 153 | 703 | -22 | 224 |
Cash flow from operating activities | 3,069 | 2,938 | 1,538 | 1,023 |
Business acquisitions and sales, net | -2,399 | -2,990 | -524 | -799 |
Net investment in tangible assets | -249 | -266 | -73 | -82 |
Net investment in intangible assets | -69 | -31 | -48 | -13 |
Cash flow from investing activities | -2,717 | -3,287 | -645 | -894 |
Borrowings/repayment of borrowings, net | 540 | 1,216 | -481 | -104 |
Dividends paid | -681 | -545 | - | - |
Dividends paid to non-controlling interests | -167 | -98 | -54 | -14 |
Cash flow from financing activities | -308 | 573 | -535 | -118 |
Cash flow for the period | 44 | 224 | 358 | 10 |
Cash and cash equivalents at beginning of period | 1,509 | 1,170 | 1,368 | 1,450 |
Translation differences | 150 | 115 | -23 | 49 |
Cash and cash equivalents at end of period | 1,703 | 1,509 | 1,703 | 1,509 |
ACQUISITIONS IN 2022
Twelve businesses were consolidated in 2022. The acquisition pertains to the assets of the Danish company Zenith Dental as well as the majority of the shares in the Finnish company BCC Solutions, the two Norwegian companies Cenec Tavlebygg and Oslo Dental, the two Italian companies Cormidi and
The purchase price allocation includes all acquisitions consolidated in 2022.
Acquisition-related expenses of
Acquired net assets | |||
Net assets, SEK million | Carrying amount | Value adjustment | Fair value |
Trademarks, customer relationships, licences | 14 | 1,294 | 1,308 |
Tangible assets | 84 | - | 84 |
Inventories, accounts receivable and other receivables | 610 | -19 | 591 |
Accounts payable and other liabilities | -420 | -337 | -757 |
Cash and cash equivalents | 191 | - | 191 |
Total net assets | 479 | 938 | 1,417 |
- | 1,021 | 1,021 | |
Total net assets | 479 | 1,959 | 2,438 |
Effect on cash flow, SEK million | |||
Consideration | 2,438 | ||
Considerations not paid | -273 | ||
Cash and cash equivalents in acquired companies | -191 | ||
Consideration paid relating to acquisitions from previous years | 321 | ||
Total cash flow effect | 2,295 | ||
FINANCIAL INSTRUMENTS
SEK million | ||
Financial assets at amortised cost | ||
Accounts receivable - trade | 2,853 | 2,257 |
Other non-current financial receivables | 15 | 13 |
Cash and cash equivalents | 1,703 | 1,509 |
Total | 4,571 | 3,779 |
Liabilities at fair value | ||
Other liabilities1 | 1,946 | 1,657 |
Financial liabilities at amortised cost | ||
Interest-bearing borrowings | 8,263 | 6,908 |
Accounts payable - trade | 1,449 | 1,294 |
Total | 11,658 | 9,859 |
1 Other liabilities classified as financial instruments refer to mandatory put/call options related to non-controlling interests.
The carrying amount is the same as the fair value. Financial instruments at fair value are classified into different levels depending on how fair value is determined. All financial instruments at fair value in the
KEY PERFORMANCE INDICATORS
ROLLING TWELVE MONTHS TO | 202231 DEC | 202131 DEC |
Net sales, SEK million | 21,552 | 17,480 |
Change in net sales, % | 23.3 | 26.8 |
EBITA, SEK million | 4,662 | 3,709 |
EBITA margin, % | 21.6 | 21.2 |
EBITDA, SEK million | 5,140 | 4,122 |
EBITDA margin, % | 23.8 | 23.6 |
Capital employed, SEK million | 20,668 | 16,447 |
Capital employed excl. goodwill and other intangible assets, SEK million | 3,444 | 2,294 |
Return on capital employed, % | 22.6 | 22.5 |
Return on capital employed excl. goodwill, % | 135 | 162 |
Return on equity, % | 23.1 | 24.6 |
Net debt, SEK million | 8,576 | 7,113 |
Net debt/equity ratio, times | 0.6 | 0.7 |
Net debt/EBITDA, times | 1.7 | 1.7 |
Interest-bearing net debt, SEK million | 5,590 | 4,603 |
Interest-bearing net debt/EBITDA, times | 1.1 | 1.1 |
Equity/assets ratio, % | 44.8 | 43.2 |
Number of shares, thousand | 454,216 | 454,216 |
Average number of employees | 6,495 | 5,995 |
CONDENSED PARENT COMPANY INCOME STATEMENT
TWELVE MONTHS | FOURTH QUARTER | |||
SEK million | 2022 | 2021 | 2022 | 2021 |
Administrative expenses | -120 | -119 | -29 | -33 |
Other operating income1 | 63 | 170 | 63 | 170 |
Operating profit/loss | -57 | 51 | 34 | 137 |
Net financial items2 | 501 | 711 | 3 | 22 |
Profit after financial items | 444 | 762 | 37 | 159 |
Appropriations | -8 | -54 | -8 | -54 |
Tax | 8 | -8 | -6 | -12 |
Net profit for the period | 444 | 700 | 23 | 93 |
1 Invoicing of Group-wide services.
2 Net financial items include
CONDENSED PARENT COMPANY BALANCE SHEET
SEK million | ||
ASSETS | ||
Financial assets | 6,892 | 5,946 |
Current receivables | 8,618 | 8,333 |
Cash and cash equivalents | 587 | 584 |
TOTAL ASSETS | 16,097 | 14,863 |
EQUITY AND LIABILITIES | ||
Equity | 3,649 | 3,886 |
Untaxed reserves | 114 | 122 |
Provisions | - | 2 |
Non-current interest-bearing liabilities | 750 | 2,363 |
Current interest-bearing liabilities | 6,302 | 3,522 |
Current non-interest-bearing liabilities | 5,282 | 4,968 |
TOTAL EQUITY AND LIABILITIES | 16,097 | 14,863 |
DEFINITIONS AND OBJECTIVES
Return on equity | Net profit for the period divided by average equity. |
Return on capital employed | EBITA before acquisition costs divided by capital employed. |
Return on capital employed excluding goodwill and other intangible assets | EBITA before acquisition costs divided by capital employed excluding goodwill and other intangible assets. |
EBITA | EBITA is a measure which Lifco considers relevant for investors who wish to understand the earnings generated after investments in tangible and intangible assets requiring reinvestment but before investments in intangible assets attributable to acquisitions. Lifco defines earnings before interest, tax and amortisation (EBITA) as operating profit before amortisation and impairment of intangible assets arising from acquisitions excluding acquisition costs. |
EBITA margin | EBITA divided by net sales. |
EBITDA | EBITDA is a measure which Lifco considers relevant for investors who wish to understand the earnings generated before investments in non-current assets. Lifco defines earnings before interest, tax, depreciation and amortisation (EBITDA) as operating profit before depreciation, amortisation and impairment of tangible and intangible assets excluding acquisition costs. |
EBITDA margin | EBITDA divided by net sales. |
Net debt/equity ratio | Net debt divided by equity. |
Net debt | Lifco uses the alternative KPI net debt. Lifco considers that this is a useful additional KPI which allows users of the financial reports to assess the Group's ability to pay dividends, make strategic investments and meet its financial obligations. Lifco defines the KPI as follows: current and non-current liabilities to credit institutions, bonds, interest-bearing pension provisions, liabilities related to put/call options relating to acquisitions as well as lease liabilities less cash and cash equivalents. |
Earnings per share |
Profit after tax attributable to |
Interest-bearing net debt | Lifco uses the alternative KPI interest-bearing net debt. Lifco considers that this is a useful additional KPI which allows users of the financial reports to assess the Group's ability to pay dividends, make strategic investments and meet its financial obligations. Lifco defines the KPI as follows: current and non-current liabilities to credit institutions, bonds as well as interest-bearing pension provisions less cash and cash equivalents. |
Equity/assets ratio | Equity divided by total assets (balance sheet total). |
Capital employed | Capital employed is a measure which Lifco uses for calculating the return on capital employed and for measuring how efficient the Group is. Lifco considers that capital employed is useful in helping users of the financial reports to understand how the Group finances itself. Lifco defines capital employed as total assets less cash and cash equivalents, interest-bearing pension provisions and non-interest-bearing liabilities with the exception of liabilities related to put/call options relating to acquisitions, calculated as the average of the last four quarters. |
Capital employed excluding goodwill and other intangible assets | Capital employed excluding goodwill and other intangible assets is a measure which Lifco uses for calculating the return on capital employed and for measuring how efficient the Group is. Lifco considers that capital employed excluding goodwill and other intangible assets is useful in helping users of the financial reports to understand the impact of goodwill and other intangible assets on that capital which requires a return. Lifco defines capital employed excluding goodwill and other intangible assets as total assets less cash and cash equivalents, interest-bearing pension provisions, non-interest-bearing liabilities with the exception of liabilities related to put/call options relating to acquisitions, goodwill and other intangible assets, calculated as the average of the last four quarters. |
RECONCILIATION OF ALTERNATIVE KEY PERFORMANCE INDICATORS
The interim report presents alternative key performance indicators for assessing the Group's performance. The primary alternative KPIs presented in this interim report are EBITA, EBITDA, net debt and capital employed. Definitions of the alternative KPIs are presented on pages 20-21.
EBITA compared with financial statements in accordance with IFRS
SEK million | TWELVE MONTHS2022 | TWELVE MONTHS2021 |
3,953 | ||
Operating profit | 3,141 | |
Amortisation of intangible assets arising from acquisitions | 673 | 526 |
EBITA | 4,626 | 3,667 |
Acquisition costs | 36 | 42 |
EBITA before acquisition costs | 4,662 | 3,709 |
EBITDA compared with financial statements in accordance with IFRS
SEK million | TWELVE MONTHS2022 | TWELVE MONTHS2021 |
3,953 | ||
Operating profit | 3,141 | |
Depreciation of tangible assets | 454 | 393 |
Amortisation of intangible assets | 24 | 20 |
Amortisation of intangible assets arising from acquisitions | 673 | 526 |
EBITDA | 5,104 | 4,080 |
Acquisition costs | 36 | 42 |
EBITDA before acquisition costs | 5,140 | 4,122 |
Net debt compared with financial statements in accordance with IFRS
SEK million | ||
Non-current interest-bearing liabilities including pension provisions | 920 | 2,554 |
Current interest-bearing liabilities | 6,373 | 3,558 |
Cash and cash equivalents | -1,703 | -1,509 |
Interest-bearing net debt | 5,590 | 4,603 |
Put/call options | 1,946 | 1,657 |
Lease liability | 1,040 | 853 |
Net debt | 8,576 | 7,113 |
Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS
SEK million | ||||
Total assets | 29,771 | 29,243 | 27,296 | 26,712 |
Cash and cash equivalents | -1,703 | -1,368 | -1,255 | -1,474 |
Interest-bearing pension provisions | -70 | -65 | -61 | -57 |
Non-interest-bearing liabilities | -6,153 | -6,151 | -5,934 | -6,059 |
Capital employed | 21,845 | 21,659 | 20,046 | 19,122 |
Goodwill and other intangible assets | -18,286 | -17,753 | -16,624 | -16,234 |
Capital employed excluding goodwill and other intangible assets | 3,559 | 3,906 | 3,422 | 2,888 |
Capital employed and capital employed excluding goodwill and other intangible assets calculated as the average of the last four quarters compared with financial statements in accordance with IFRS
SEK million | Average | Q42022 | Q32022 | Q2 2022 | Q12022 | |
Capital employed | 20,668 | 21,845 | 21,659 | 20,046 | 19,122 | |
Capital employed excluding goodwill and other intangible assets | 3,444 | 3,559 | 3,906 | 3,422 | 2,888 | |
Total | ||||||
EBITA | 4,662 | 1,322 | 1,103 | 1,221 | 1,016 | |
Return on capital employed | 22.6% | |||||
Return on capital employed excluding goodwill and other intangible assets | 135% |
https://news.cision.com/lifco-ab/r/year-end-report-2022,c3708368
https://mb.cision.com/Main/5431/3708368/1824053.pdf
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