Interim Report January - September 2022
Reporting period January – September
- Net sales increased 24.1 per cent to SEK 15,550 (12,528) million. Organically, net sales grew by 12.0 per cent.
- EBITA increased 23.9 per cent to SEK 3,340 (2,696) million.
- The EBITA margin was 21.5 (21.5) per cent.
- Profit before tax grew 24.0 per cent to SEK 2,760 (2,226) million.
- Net profit for the period grew 24.0 per cent to SEK 2,070 (1,669) million.
- Earnings per share increased 23.8 per cent till SEK 4.48 (3.62).
- Cash flow from operating activities amounted to SEK 1,531 (1,915) million.
- Nine new businesses were consolidated during the period with total annual net sales of about SEK 1,130 million.
Reporting period July – September
- Net sales increased 20.7 per cent to SEK 5,020 (4,158) million. Organically, net sales grew by 10.2 per cent.
- EBITA increased 28.0 per cent to SEK 1,103 (862) million.
- The EBITA margin increased to 22.0 (20.7) per cent.
- Profit before tax grew 29.3 per cent to SEK 895 (692) million.
- Net profit for the period grew 29.5 per cent to SEK 671 (518) million.
- Cash flow from operating activities amounted to SEK 584 (736) million.
Summary of financial performance
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Net sales | 15,550 | 12,528 | 24.1% | 5,020 | 4,158 | 20.7% | 20,502 | 17.3% | 17,480 |
| EBITA | 3,340 | 2,696 | 23.9% | 1,103 | 862 | 28.0% | 4,353 | 17.4% | 3,709 |
| EBITA margin | 21.5% | 21.5% | - | 22.0% | 20.7% | 1.3 | 21.2% | - | 21.2% |
| Profit before tax | 2,760 | 2,226 | 24.0% | 895 | 692 | 29.3% | 3,604 | 17.4% | 3,070 |
| Net profit for the period | 2,070 | 1,669 | 24.0% | 671 | 518 | 29.5% | 2,830 | 16.5% | 2,429 |
| Earnings per share | 4.48 | 3.62 | 23.8% | 1.46 | 1.12 | 30.4% | 6.12 | 16.3% | 5.26 |
| Return on capital employed | 22.1% | 22.7% | -0.6 | 22.1% | 22.7% | -0.6 | 22.1% | -0.4 | 22.5% |
| Return on capital employed excl. goodwill | 139% | 161% | -22 | 139% | 161% | -22 | 139% | -23 | 162% |
COMMENTS FROM THE CEO
Net sales increased by 24.1 per cent to SEK 15,550 (12,528) million in the first nine months of the year, driven by organic growth, acquisitions and positive exchange rate effects. The generally favourable market environment in Demolition & Tools and Systems Solutions was a strong contributing factor to organic growth of 12.0 per cent. Net sales were positively impacted by cross-compensation for higher costs in most parts of the business.
During the nine-month period, EBITA increased by 23.9 per cent to SEK 3,340 (2,696) million and the EBITA margin amounted to 21.5 (21.5) per cent. Acquisitions, organic growth and exchange rate effects contributed to the increased EBITA.
Earnings per share increased by 23.8% till SEK 4.48 (3.62) during the first nine months of the year. Cash flow from operating activities amounted to SEK 1,531 (1,915) million. The lower cash flow was due primarily to increased inventory build-up as the result of high demand for a longer period and disruptions to the global supply chain that led to requirements for greater safety stock.
During the year, Lifco consolidated nine acquisitions, of which three in the Dental business area, two in Demolition & Tools and four in Systems Solutions. The acquisitions in Dental pertain to Zenith Dental, which distributes dental products in Denmark; Oslo Dental, which does the same with a focus on Norwegian dentists; and Specialist Alarm Services in the UK that develops and manufactures staff attack alarms and nurse call systems for the healthcare sector. Operations in Demolition & Tools have expanded with two Italian companies: Cormidi, which manufactures mini loaders and mini dumpers, and Trevi Benne, which manufactures excavator tools and attachments. The Construction Materials division in the Systems Solutions business area was strengthened with the Norwegian company Cenec Tavlebygg, which manufactures low-voltage electrical supplies, and the Finnish company BCC Solutions, whose products include optical transceivers and fibre cabling. The British company Condale Plastics, a specialist manufacturer of bespoke plastic extrusions, was consolidated in Contract Manufacturing division and the Dutch company EFKA Holding, which manufactures customised aluminium frames for textiles, was consolidated in Service and Distribution division. Taken together, the acquisitions will have a positive impact on Lifco’s results and financial position in the current year.
In August, Lifco updated its MTN programme, increasing the framework amount from SEK 5 billion to SEK 6 billion, and issued two unsecured bonds totalling SEK 750 million. Lifco thereby has bonds outstanding totalling SEK 3,100 million. Lifco’s financial position remains solid and interest-bearing net debt amounted to 1.3 times EBITDA at 30 September 2022, which is well in line with our target of interest-bearing net debt of a maximum of three times EBITDA and means that Lifco continues to possess significant financial scope to make additional acquisitions.
Per Waldemarson
President and CEO
GROUP PERFORMANCE IN JANUARY – SEPTEMBER
Sales increased 24.1 per cent to SEK 15,550 (12,528) million. Organic growth was 12.0 per cent, acquisitions contributed 8.7 per cent while changes in exchange rates had a positive impact of 4.6 per cent. Net sales were positively impacted by cross-compensation for higher costs in most parts of the business. The divestment of the Estonian company Hekotek, which mainly sells sawmill equipment to Russia, impacted net sales negatively by 1.2 per cent.
During the period, assets were consolidated of the Danish company Zenith Dental as well as the majority of the Finnish company BCC Solutions, the two Norwegian companies Cenec Tavlebygg and Oslo Dental, the two Italian companies Cormidi and Trevi Benne, and the British company Specialist Alarm Services. All shares in the British company Condale Plastics and the Dutch company EFKA Holding were also consolidated.
EBITA increased 23.9 per cent to SEK 3,340 (2,696) million and the EBITA margin was 21.5 (21.5) per cent. Acquisitions and organic growth contributed to the increased EBITA. Foreign exchange gains added 4.0 per cent to EBITA. During the period, 42 (41) per cent of EBITA was generated in EUR, 23 (24) per cent in SEK, 12 (12) per cent in NOK, 8 (7) per cent in GBP, 6 (5) per cent in DKK, 5 (5) per cent in USD and 4 (6) per cent in other currencies.
Net financial items were SEK -63 (-52) million.
Profit before tax grew by 24.0 per cent to SEK 2,760 (2,226) million and net profit for the period increased by 24.0 per cent to SEK 2,070 (1,669) million.
Average capital employed excluding goodwill increased by SEK 839 million during the period, to SEK 3,133 million at 30 September 2022, compared with SEK 2,294 million at 31 December 2021. EBITA in relation to average capital employed excluding goodwill declined during the period to 139 per cent from 162 per cent at year-end.
The Group’s net debt increased by SEK 2,046 million from 31 December 2021 to SEK 9,159 million at 30 September 2022, of which liabilities related to put/call options and additional considerations for acquisitions increased SEK 274 million since year-end to SEK 1,931 million. Interest-bearing net debt increased by SEK 1,672 million since year-end and amounted to SEK 6,275 million at 30 September 2022.
On 2 August 2022, Lifco updated its MTN programme, increasing the framework amount from SEK 5 billion to SEK 6 billion The MTN programme allows Lifco to issue bonds in the Swedish market. On 23 August 2022, Lifco issued two unsecured bonds totalling SEK 750 million, and thereby has bonds outstanding totalling SEK 3,100 million. In addition to bonds outstanding, Lifco has standard short-term credit facilities.
The net debt/equity ratio at 30 September 2022 was 0.7 and was unchanged since year-end. Net debt/EBITDA increased to 1.9 times from 1.7 times at 31 December 2021. Interest-bearing net debt/EBITDA increased to 1.3 times from 1.1 times at year-end. At period-end, 57 (50) per cent of the Group’s interest-bearing liabilities were denominated in EUR.
Cash flow from operating activities amounted to SEK 1,531 (1,915) million in the period, and was impacted negatively by higher inventory build-up and increased accounts receivable as a result of the organic growth. Cash flow from investing activities was SEK -2,072 (-2,392) million, which was mainly attributable to acquisitions.
GROUP PERFORMANCE IN THE THIRD QUARTER
Sales increased 20.7 per cent to SEK 5,020 (4,158) million in the third quarter. Organic growth contributed 10.2 per cent and acquisitions 7.4 per cent, while exchange rate effects had a positive impact of 5.6 per cent. Net sales were positively impacted by cross-compensation for higher costs in most parts of the business. The divestment of the Estonian company Hekotek, which mainly sells sawmill equipment to Russia, impacted net sales negatively by 2.5 per cent.
EBITA increased 28.0 per cent to SEK 1,103 (862) million as the result of organic growth, acquisitions and exchange rate effects. The EBITA margin increased to 22.0 (20.7) per cent, positively impacted by acquisitions and cross-compensation for higher costs in most parts of the business. Foreign exchange gains added 5.3 per cent to EBITA. During the third quarter, 45 (46) per cent of EBITA was generated in EUR, 19 (22) per cent in SEK, 11 (11) per cent in NOK, 8 (7) per cent in GBP, 6 (4) per cent in USD, 4 (4) per cent in DKK and 7 (6) per cent in other currencies.
Net financial items were SEK -24 (-18) million.
Profit before tax grew by 29.3 per cent to SEK 895 (692) million. Net profit for the period grew 29.5 per cent to SEK 671 (518) million.
Average capital employed excluding goodwill increased by SEK 408 million to SEK 3,133 million at 30 September 2022, compared with SEK 2,725 million at 30 June 2022. EBITA relative to average capital employed excluding goodwill decreased from 151 per cent at 30 June 2022 to 139 percent at 30 September 2022.
From 30 June 2022, the Group’s net debt increased by SEK 730 million to SEK 9,159 million.
Cash flow from operating activities amounted to SEK 584 (736) million, primarily as a result of higher inventory build-up and increased accounts receivable as a result of the organic growth. Cash flow from investing activities was SEK -1,000 (-721) million, which was mainly attributable to acquisitions and investments.
FINANCIAL PERFORMANCE – BUSINESS AREAS
Dental
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Net sales | 3,862 | 3,822 | 1.0% | 1,213 | 1,166 | 4.0% | 5,163 | 0.8% | 5,123 |
| EBITA | 746 | 839 | -11.1% | 225 | 239 | -5.9% | 987 | -8.6% | 1,080 |
| EBITA margin | 19.3% | 22.0% | -2.7 | 18.5% | 20.5% | -2.0 | 19.1% | -2.0 | 21.1% |
The companies in Lifco’s Dental business area are leading suppliers of consumables, equipment and technical service to dentists across Europe, and the business area also has operations in the US. Lifco sells dental technology to dentists in the Nordic countries and Germany, and develops and sells medical record systems in Denmark, Sweden and Germany. The business area also includes a number of manufacturers which produce fitting products for dentures, disinfectants, saliva ejectors, bite registration and dental impression materials, bonding agents and other consumables that are sold to dentists through distributors around the world.
Net sales in Dental increased by 1.0 per cent to SEK 3,862 (3,822) million during the first nine months of the year. Production of dental prosthetics in China was impacted by the pandemic in the first quarter. This affected net sales negatively throughout the entire year, since customers increasingly decided to purchase locally-produced dental technology even after production disruptions were addressed.
EBITA declined by 11.1 per cent during the nine-month period to SEK 746 (839) million and the EBITA margin was 19.3 (22.0) per cent. Profitability was negatively affected by the lower demand for dental prosthetics from China and increased sales and marketing activities after pandemic restrictions were eased.
In January 2022, the assets of the Danish company Zenith Dental were consolidated. The company is a niche distributor of dental products in Denmark and generated net sales of around DKK 21 million in 2020. In March 2022, the majority of the shares of the British company Specialist Alarm Services Ltd were consolidated. The company develops and manufactures staff attack alarms and nurse call systems for the healthcare sector. Specialist Alarm Services had a turnover of around GBP 3.9 million in 2021 and has 27 employees. In July 2022, a majority of the shares in the Norwegian company Oslo Dental were consolidated. Oslo Dental sells equipment and services to dentists in Norway. The company reported net sales of about NOK 27 million in 2021 and has five employees.
Demolition & Tools
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Net sales | 4,518 | 3,372 | 34.0% | 1,529 | 1,146 | 33.4% | 5,847 | 24.4% | 4,701 |
| EBITA | 1,162 | 900 | 29.1% | 393 | 299 | 31.4% | 1,523 | 20.8% | 1,261 |
| EBITA margin | 25.7% | 26.7% | -1.0 | 25.7% | 26.1% | -0.4 | 26.0% | -0.8 | 26.8% |
The Demolition & Tools business area develops, manufactures and sells equipment for the infrastructure, construction and demolition 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 34.0 per cent to SEK 4,518 (3,372) million in the first nine months of the year, driven by organic growth, acquisitions and exchange rate effects. The market environment was generally good for the period. Net sales were also positively impacted by cross-compensation for higher costs in operations.
EBITA increased 29.1 per cent to SEK 1,162 (900) million during the nine-month period, positively affected by organic growth, acquisitions and exchange rate effects. The product mix had a negative effect on the EBITA margin, amounting to 25.7 per cent (26.7).
The majority of shares of the Italian company Cormidi were consolidated as of March 2022, a leading manufacturer of mini dumpers and mini loaders. The company had a turnover of around EUR 13 million in 2020 and has 45 employees. In July 2022, a majority of the shares were consolidated in the Italian company Trevi Benne, which manufactures excavator tools and attachments. The company had a turnover of around EUR 37 million in 2021 and has 105 employees.
Systems Solutions
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Net sales | 7,170 | 5,334 | 34.4% | 2,278 | 1,846 | 23.4% | 9,492 | 24.0% | 7,656 |
| EBITA | 1,543 | 1,048 | 47.2% | 520 | 353 | 47.3% | 1,989 | 33.1% | 1,494 |
| EBITA margin | 21.5% | 19.6% | 1.9 | 22.8% | 19.1% | 3.7 | 21.0% | 1.5 | 19.5% |
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 34.4 per cent to SEK 7,170 (5,334) million during the first nine months of the year, mainly on the back of organic growth in all divisions, acquisitions and positive exchange rate effects. The market for Systems Solutions was healthy overall during the first nine months of the year and net sales were also positively affected by cross-compensation for higher costs in most parts of the business.
EBITA increased by 47.2 per cent in the period to SEK 1,543 (1,048) million and the EBITA margin expanded by 1.9 percentage points to 21.5 (19.6) per cent. Organic growth, acquisitions and exchange rate effects contributed to the increased EBITA and improvement in the margin.
Construction Materials reported a healthy sales trend for the first nine months of the year with improved profitability, positively affected by acquisitions.
Contract Manufacturing reported a healthy sales trend for the nine-month period with improved profitability.
Environmental Technology reported a healthy performance in sales and profitability in the first nine months of the year.
Service and Distribution reported a healthy sales trend in the nine-month period with improved profitability, positively impacted by acquisitions.
The remaining operations within the Forest division after the divestment of Hekotek had a stable sales trend, with healthy year-on-year profitability. For more information about the divestment of Hekotek in May 2022, refer to the section “Divestment” below.
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 January 2022. The company had net sales of about NOK 17 million in 2020 and has eight employees. In the Construction Materials division, the majority of shares of the Finnish company BCC Solutions, a supplier of optical transceivers, fibre cabling, multiplexers, media converters, test and measurement instruments, for the Finnish fibre market, were consolidated as of May 2022. The company had net sales of about EUR 11 million in 2021 and has nine employees. In September 2022, all shares in the Dutch company EFKA Holding, which manufactures customized aluminium frames for textiles, were consolidated in the Service and Distribution division. The company reported net sales of MEUR 11.6 in 2021 and has about 40 employees. All shares in the British company Condale Plastics, a specialist manufacturer of bespoke plastic extrusions, were consolidated in the Contract Manufacturing division as of September 2022. The company reported sales of approximately GBP 18 million in 2021 and has about 80 employees.
ACQUISITIONS
Lifco made the following consolidations in the nine-month period:
| Consolidated from month | Acquisitions | Business area | Net sales | Employees |
| January | Zenith Dental | Dental | DKK 21m1 | - |
| January | Cenec Tavlebygg | Systems Solutions | NOK 17m1 | 8 |
| March | Cormidi | Demolition & Tools | EUR 13m1 | 45 |
| March | Specialist Alarm Services | Dental | GBP 3.9m | 27 |
| May | BCC Solutions | Systems Solutions | EUR 11m | 9 |
| July | Trevi Benne | Demolition & Tools | EUR 37m | 105 |
| July | Dental | Dental | NOK 27m | 5 |
| September | EFKA Holding | Systems Solutions | EUR 11.6m | 40 |
| September | Condale Plastics | Systems Solutions | GBP 18m | 80 |
| 1 Refers to net sales in 2020. | ||||
Further information on the acquisitions is provided on page 18. 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 will have a positive impact on Lifco’s results and financial position in the current year.
DIVESTMENT
All of the shares in the Estonian company Hekotek, which sells sawmill equipment primarily in Russia, were divested in May 2022. Hekotek had 130 employees and sales in 2021 were approximately EUR 40 million. The company was consolidated in the Systems Solutions business area, Forest division. The buyers are management of the company, who owned 17.5 per cent of the shares before the transaction. The divestment was not significant for the Group’s or the Forest division’s financial position and did not have a significant impact on Lifco’s earnings or financial position during the year.
OTHER INFORMATION
Employees
The average number of employees was 6,347 (5,912) during the nine-month period. At the end of the period, the number of employees was 6,415 (6,171). Over 320 employees joined the company through acquisitions in the nine-month period.
Events after the end of the reporting period
No significant events occurred after the end of the reporting period.
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 Ukraine and currently finds it difficult to assess the effect of sanctions against Russia and the implications that the conflict could have on the economic situation in Europe. Following the divestment of Hekotek in May 2022, Lifco has only marginal exposure to Russia. Excluding Hekotek, sales to Russia in 2021 amounted to SEK 131 million or 0.7 per cent of the Group’s sales. The Group’s sales to Ukraine in 2021 amounted to SEK 0.3 million.
The Parent Company is affected by the above risks and uncertainties in its capacity as owner of the subsidiary companies. For further information on Lifco’s risks and risk management, see the 2021 Annual Report.
Accounting policies
The Group’s interim 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.
DECLARATION OF THE BOARD OF DIRECTORS
The Board of Directors and Chief Executive Officer warrant and declare that this nine-month 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, 21 October 2022
|
Carl Bennet Chairman of the Board |
Ulrika Dellby Director |
Dan Frohm Director |
|
Erik Gabrielson Director |
Ulf Grunander Director |
Annika Espander Director |
|
Tobias Nordin Director, employee representative |
Johan Stern Vice Chairman |
Caroline af Ugglas Director |
|
Axel Wachtmeister Director |
Per Waldemarson President and CEO, Director |
Peter Wiberg Director,employee representative |
AUDITOR’S REPORT
Lifco AB (publ) Corp. Reg. No. 556465-3185
Introduction
We have reviewed the condensed interim financial information (interim report) of Lifco AB as of 30 September 2022 and the nine-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed on the basis of a review does not provide the same level of assurance as a conclusion expressed on the basis of an audit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Enköping, 21 October 2022
PricewaterhouseCoopers AB
Cecilia Andrén Dorselius Vicky Johansson
Authorised Public Accountant Authorised Public Accountant
Auditor in Charge
FINANCIAL CALENDAR
The 2022 year-end report and the report for the fourth quarter will be published on 3 February 2023.
The annual report for 2022 will be published in the week starting 27 March 2023.
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 Lifco AB will be held on Friday, 28 April 2023, at 11 a.m. CEST, at Bonnierhuset, Torsgatan 21, Stockholm. Shareholders wishing to raise an issue for discussion at the AGM may do so by submitting their proposal to the Chairman of Lifco by e-mail: [email protected] or by post to: Lifco AB, Attn: Bolagsstämmoärenden, Verkmästaregatan 1, SE-745 85 Enköping, Sweden. To ensure their inclusion in the notice and thus on the agenda for the AGM, proposals must be received by the Company no later than 10 March 2023.
THE NOMINATION COMMITTEE
Prior to the Annual General Meeting 2023, the Nomination Committee consists of Carl Bennet, Carl Bennet AB, Jannis Kitsakis, the Fourth Swedish National Pension Fund (AP4), Frank Larsson, SHB Fonder & Liv, Javiera Ragnartz, SEB Fonder & Liv and Jörgen Wärmlöv, Spiltan Fonder. Carl Bennet is Chairman of the Nomination Committee.
Shareholders wishing to submit proposals to the Nomination Committee for the 2023 AGM may do so by sending an e-mail to [email protected] or writing to: Lifco, Attn: Valberedningen, Verkmästaregatan 1, SE-745 85 Enköping, Sweden.
FURTHER INFORMATION
Media and investor relations: Åse Lindskog, [email protected], telephone: +46 730 24 48 72.
WEBCASTED PRESENTATION
A webcasted presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Friday, 21 October at 9.00 a.m. CEST. The presentation can be listened to online or by calling one of the telephone numbers below. The presentation will be followed by a question-and-answer session.
Link to the presentation: https://ir.financialhearings.com/lifco-q3-2022
Telephone numbers:
Sweden +46 8 505 583 57
UK +44 3333 00 90 31
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 Lifco Group consisted of 198 operating companies in 31 countries. In 2021, Lifco reported EBITA of SEK 3.7 billion on net sales of SEK 17.5 billion. The EBITA margin was 21.2 per cent. Read more at www.lifco.se.
| This information constitutes information that Lifco AB is required to publish under the EU’s Market Abuse Regulation. The information was submitted for publication through the aforementioned contact person on 21 October 2022, at 7.30 a.m. CEST. |
CONDENSED CONSOLIDATED INCOME STATEMENT
| NINE MONTHS | THIRD QUARTER | FULL YEAR | |||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | 2021 |
| Net sales | 15,550 | 12,528 | 24.1% | 5,020 | 4,158 | 20.7% | 17,480 |
| Cost of goods sold | -9,104 | -7,245 | 25.7% | -2,898 | -2,431 | 19.2% | -10,150 |
| Gross profit | 6,446 | 5,283 | 22.0% | 2,122 | 1,727 | 22.9% | 7,330 |
| Selling expenses | -1,632 | -1,289 | 26.6% | -547 | -444 | 23.2% | -1,788 |
| Administrative expenses | -1,876 | -1,583 | 18.5% | -622 | -525 | 18.5% | -2,249 |
| Development costs | -116 | -102 | 13.7% | -36 | -31 | 16.1% | -140 |
| Other income and expenses | 1 | -31 | -103% | 2 | -17 | -112% | -12 |
| Operating profit | 2,823 | 2,278 | 23.9% | 919 | 710 | 29.4% | 3,141 |
| Net financial items | -63 | -52 | 21.2% | -24 | -18 | 33.3% | -71 |
| Profit before tax | 2,760 | 2,226 | 24.0% | 895 | 692 | 29.3% | 3,070 |
| Tax | -690 | -557 | 23.9% | -224 | -174 | 28.7% | -641 |
| Net profit for the period | 2,070 | 1,669 | 24.0% | 671 | 518 | 29.5% | 2,429 |
| Profit attributable to: | |||||||
| Parent Company shareholders | 2,033 | 1,644 | 23.7% | 657 | 507 | 29.6% | 2,390 |
| Non-controlling interests | 37 | 25 | 48.0% | 14 | 11 | 27.3% | 39 |
| Earnings per share before and after dilution for the period, attributable to Parent Company shareholders | 4.48 | 3.62 | 23.8% | 1.46 | 1.12 | 30.4% | 5.26 |
| EBITA | 3,340 | 2,696 | 23.9% | 1,103 | 862 | 28.0% | 3,709 |
| Depreciation of tangible assets | 324 | 292 | 11.0% | 113 | 102 | 10.8% | 393 |
| Amortisation of intangible assets | 15 | 12 | 25.0% | 5 | 4 | 25.0% | 20 |
| Amortisation of intangible assets arising from acquisitions | 494 | 384 | 28.6% | 173 | 141 | 22.7% | 526 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| NINE MONTHS | THIRD QUARTER | FULL YEAR2021 | |||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | |
| Net profit for the period | 2,070 | 1,669 | 24.0% | 671 | 518 | 29.5% | 2,429 |
| Other comprehensive income | |||||||
| Items which can later be reclassified to profit or loss: | |||||||
| Hedge of net investment | -59 | -35 | 68.6% | -30 | -2 | -1,400% | -53 |
| Translation differences | 722 | 289 | 150% | 281 | 80 | 251% | 426 |
| Tax related to other comprehensive income | 12 | 8 | 50.0% | 6 | 1 | 500% | 12 |
| Total comprehensive income for the period | 2,745 | 1,931 | 42.2% | 928 | 597 | 55.4% | 2,814 |
| Comprehensive income attributable to: | |||||||
| Parent Company shareholders | 2,701 | 1,903 | 41.9% | 912 | 585 | 55.9% | 2,770 |
| Non-controlling interests | 44 | 28 | 57.1% | 16 | 12 | 33.3% | 44 |
| 2,745 | 1,931 | 42.2% | 928 | 597 | 55.4% | 2,814 | |
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.
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Dental | 3,862 | 3,822 | 1.0% | 1,213 | 1,166 | 4.0% | 5,163 | 0.8% | 5,123 |
| Demolition & Tools | 4,518 | 3,372 | 34.0% | 1,529 | 1,146 | 33.4% | 5,847 | 24.4% | 4,701 |
| Systems Solutions | 7,170 | 5,334 | 34.4% | 2,278 | 1,846 | 23.4% | 9,492 | 24.0% | 7,656 |
| Group | 15,550 | 12,528 | 24.1% | 5,020 | 4,158 | 20.7% | 20,502 | 17.3% | 17,480 |
Net sales by type of income:
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Dental products | 3,862 | 3,822 | 1.0% | 1,213 | 1,166 | 4.0% | 5,163 | 0.8% | 5,123 |
| Machinery and tools | 4,518 | 3,372 | 34.0% | 1,529 | 1,146 | 33.4% | 5,847 | 24.4% | 4,701 |
| Construction Materials | 1,121 | 894 | 25.4% | 364 | 291 | 25.1% | 1,494 | 17.9% | 1,267 |
| Contract Manufacturing | 1,419 | 1,024 | 38.6% | 466 | 337 | 38.3% | 1,921 | 25.9% | 1,526 |
| Environmental Techno-logy | 2,039 | 1,481 | 37.7% | 684 | 481 | 42.2% | 2,633 | 26.9% | 2,075 |
| Service and Distribution | 2,119 | 1,429 | 48.3% | 692 | 541 | 27.9% | 2,713 | 34.1% | 2,023 |
| Forest | 472 | 506 | -6.7% | 72 | 196 | -63.3% | 731 | -4.4% | 765 |
| Group | 15,550 | 12,528 | 24.1% | 5,020 | 4,158 | 20.7% | 20,502 | 17.3% | 17,480 |
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:
| NINE MONTHS | THIRD QUARTER | Rolling 12 months | FULL YEAR | ||||||
| SEK million | 2022 | 2021 | change | 2022 | 2021 | change | change | 2021 | |
| Dental | 746 | 839 | -11.1% | 225 | 239 | -5.9% | 987 | -8.6% | 1,080 |
| Demolition & Tools | 1,162 | 900 | 29.1% | 393 | 299 | 31.4% | 1,523 | 20.8% | 1,261 |
| Systems Solutions | 1,543 | 1,048 | 47.2% | 520 | 353 | 47.3% | 1,989 | 33.1% | 1,494 |
| Central Group functions | -111 | -91 | 22.0% | -35 | -29 | 20.7% | -146 | 15.9% | -126 |
| EBITA before acquisition costs | 3,340 | 2,696 | 23.9% | 1,103 | 862 | 28.0% | 4,353 | 17.4% | 3,709 |
| Acquisition costs | -23 | -34 | -32.4% | -11 | -11 | - | -31 | -26.2% | -42 |
| 2,662 | 851 | ||||||||
| EBITA | 3,317 | 2,662 | 24.6% | 1,092 | 851 | 28.3% | 4,322 | 17.9% | 3,667 |
| Amortisation of intangible assets arising from acquisitions | -494 | -384 | 28.6% | -173 | -141 | 22.7% | -636 | 20.9% | -526 |
| Net financial items | -63 | -52 | 21.2% | -24 | -18 | 33.3% | -82 | 15.5% | -71 |
| Profit before tax | 2,760 | 2,226 | 24.0% | 895 | 692 | 29.3% | 3,604 | 17.4% | 3,070 |
CONDENSED CONSOLIDATED BALANCE SHEET
| SEK million | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| ASSETS | |||
| Intangible assets | 17,753 | 14,513 | 15,497 |
| Tangible assets | 2,235 | 1,878 | 2,052 |
| Financial assets | 376 | 245 | 320 |
| Inventories | 3,890 | 2,700 | 2,821 |
| Accounts receivable - trade | 2,934 | 2,238 | 2,257 |
| Current receivables | 687 | 519 | 420 |
| Cash and cash equivalents | 1,368 | 1,450 | 1,509 |
| TOTAL ASSETS | 29,243 | 23,543 | 24,876 |
| EQUITY AND LIABILITIES | |||
| Equity | 12,564 | 9,932 | 10,756 |
| Non-current interest-bearing liabilities incl. pension provisions | 3,303 | 2,080 | 3,228 |
| Other non-current liabilities and provisions | 3,840 | 2,828 | 3,144 |
| Current interest-bearing liabilities | 5,293 | 4,765 | 3,737 |
| Accounts payable - trade | 1,602 | 1,236 | 1,294 |
| Other current liabilities | 2,641 | 2,702 | 2,717 |
| TOTAL EQUITY AND LIABILITIES | 29,243 | 23,543 | 24,876 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Attributable to Parent Company shareholders |
| SEK million | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| Opening equity | 10,645 | 8,614 | 8,614 |
| Comprehensive income for the period | 2,701 | 1,903 | 2,770 |
| Change in value, owner transactions | -201 | -137 | -194 |
| Dividend | -681 | -545 | -545 |
| Closing equity | 12,464 | 9,835 | 10,645 |
| Equity attributable to: | |||
| Parent Company shareholders | 12,464 | 9,835 | 10,645 |
| Non-controlling interests | 100 | 97 | 111 |
| 12,564 | 9,932 | 10,756 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
| NINE MONTHS | THIRD QUARTER | FULL YEAR | |||
| SEK million | 2022 | 2021 | 2022 | 2021 | 2021 |
| Operating activities | |||||
| Operating profit | 2,823 | 2,278 | 919 | 710 | 3,141 |
| Depreciation of right-of-use assets | 152 | 127 | 54 | 44 | 173 |
| Other non-cash items | 681 | 561 | 237 | 203 | 766 |
| Interest and financial items, net | -63 | -52 | -24 | -18 | -71 |
| Tax paid | -646 | -538 | -169 | -176 | -684 |
| Cash flow before changes in working capital | 2,947 | 2,376 | 1,017 | 763 | 3,325 |
| Changes in working capital | |||||
| Inventories | -1,027 | -538 | -226 | -195 | -627 |
| Current receivables | -564 | -402 | 37 | 34 | -463 |
| Current liabilities | 175 | 479 | -244 | 134 | 703 |
| Cash flow from operating activities | 1,531 | 1,915 | 584 | 736 | 2,938 |
| Business acquisitions and sales, net | -1,875 | -2,191 | -927 | -648 | -2,990 |
| Net investment in tangible assets | -176 | -184 | -64 | -69 | -266 |
| Net investment in intangible assets | -21 | -17 | -9 | -4 | -31 |
| Cash flow from investing activities | -2,072 | -2,392 | -1,000 | -721 | -3,287 |
| Borrowings/repayment of borrowings, net | 1,021 | 1,320 | 445 | 238 | 1,216 |
| Dividends paid | -681 | -545 | - | - | -545 |
| Dividends paid to non-controlling interests | -113 | -84 | - | -4 | -98 |
| Cash flow from financing activities | 227 | 691 | 445 | 234 | 573 |
| Cash flow for the period | -314 | 214 | 29 | 249 | 224 |
| Cash and cash equivalents at beginning of period | 1,509 | 1,170 | 1,255 | 1,178 | 1,170 |
| Translation differences | 173 | 66 | 84 | 23 | 115 |
| Cash and cash equivalents at end of period | 1,368 | 1,450 | 1,368 | 1,450 | 1,509 |
ACQUISITIONS IN 2022
Nine businesses were consolidated in the first nine months of the year. The acquisition pertains to the assets of the Danish company Zenith Dental as well as the majority of the Finnish company BCC Solutions, the two Norwegian companies Cenec Tavlebygg and Oslo Dental, the two Italian companies Cormidi and Trevi Benne, and the British company Specialist Alarm Services. Additionally, all shares in the British company Condale Plastics and the Dutch company EFKA Holding were consolidated during the nine-month period.
The purchase price allocation includes all acquisitions consolidated during the first nine months of the year.
Acquisition-related expenses of SEK 23 million are included in administrative expenses in the consolidated income statement for the first nine months of the year. Since the respective consolidation dates, the acquired companies have added SEK 353 million to consolidated net sales and SEK 79 million to EBITA. If the businesses had been consolidated as of 1 January 2022, net sales for the year would have increased by a further SEK 565 million and EBITA would have increased by a further SEK 118 million.
| Acquired net assets | |||
| Net assets, SEK million | Carrying amount | Value adjustment | Fair value |
| Trademarks, customer relationships, licences | 12 | 1,058 | 1,070 |
| Tangible assets | 67 | - | 67 |
| Inventories, accounts receivable and other receivables | 449 | -9 | 440 |
| Accounts payable and other liabilities | -359 | -252 | -611 |
| Cash and cash equivalents | 148 | - | 148 |
| Total net assets | 317 | 797 | 1,114 |
| Goodwill | - | 813 | 813 |
| Total net assets | 317 | 1,610 | 1,927 |
| Effect on cash flow, SEK million | |||
| Consideration | 1,927 | ||
| Considerations not paid | -271 | ||
| Cash and cash equivalents in acquired companies | -148 | ||
| Consideration paid relating to acquisitions from previous years | 263 | ||
| Total cash flow effect | 1,771 | ||
FINANCIAL INSTRUMENTS
| SEK million | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| Financial assets at amortised cost | |||
| Accounts receivable - trade | 2,934 | 2,238 | 2,257 |
| Other non-current financial receivables | 13 | 12 | 13 |
| Cash and cash equivalents | 1,368 | 1,450 | 1,509 |
| Total | 4,315 | 3,700 | 3,779 |
| Liabilities at fair value | |||
| Other liabilities1 | 1,931 | 1,518 | 1,657 |
| Financial liabilities at amortised cost | |||
| Interest-bearing borrowings | 8,531 | 6,788 | 6,908 |
| Accounts payable - trade | 1,602 | 1,236 | 1,294 |
| Total | 12,064 | 9,542 | 9,859 |
1 Other liabilities classified as financial instruments refer to mandatory put/call options related to non-controlling interests and additional considerations.
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 Lifco Group have been classified as level 3, i.e. non-observable inputs. The fair value of short-term borrowings is equal to the carrying amount, as the discount effect is insignificant.
KEY PERFORMANCE INDICATORS
| ROLLING TWELVE MONTHS TO | 202230 SEP | 202131 DEC | 202130 SEP |
| Net sales, SEK million | 20,502 | 17,480 | 16,279 |
| Change in net sales, % | 17.3 | 26.8 | 18.1 |
| EBITA, SEK million | 4,353 | 3,709 | 3,478 |
| EBITA margin, % | 21.2 | 21.2 | 21.4 |
| EBITDA, SEK million | 4,801 | 4,122 | 3,864 |
| EBITDA margin, % | 23.4 | 23.6 | 23.7 |
| Capital employed, SEK million | 19,660 | 16,447 | 15,346 |
| Capital employed excl. goodwill and other intangible assets, SEK million | 3,133 | 2,294 | 2,165 |
| Return on capital employed, % | 22.1 | 22.5 | 22.7 |
| Return on capital employed excl. goodwill, % | 139 | 162 | 161 |
| Return on equity, % | 24.4 | 24.6 | 23.4 |
| Net debt, SEK million | 9,159 | 7,113 | 6,913 |
| Net debt/equity ratio, times | 0.7 | 0.7 | 0.7 |
| Net debt/EBITDA, times | 1.9 | 1.7 | 1.8 |
| Interest-bearing net debt, SEK million | 6,275 | 4,603 | 4,678 |
| Interest-bearing net debt/EBITDA, times | 1.3 | 1.1 | 1.2 |
| Equity/assets ratio, % | 43.0 | 43.2 | 42.2 |
| Number of shares, thousand | 454,216 | 454,216 | 454,216 |
| Average number of employees | 6,347 | 5,995 | 5,912 |
CONDENSED PARENT COMPANY INCOME STATEMENT
| NINE MONTHS | THIRD QUARTER | FULL YEAR | |||
| SEK million | 2022 | 2021 | 2022 | 2021 | 2021 |
| Administrative expenses | -91 | -86 | -32 | -27 | -119 |
| Other operating income1 | - | - | - | - | 170 |
| Operating profit/loss | -91 | -86 | -32 | -27 | 51 |
| Net financial items2 | 498 | 689 | -3 | 31 | 711 |
| Profit after financial items | 407 | 603 | -35 | 4 | 762 |
| Appropriations | - | - | - | - | -54 |
| Tax | 14 | 4 | 7 | -1 | -8 |
| Net profit for the period | 421 | 607 | -28 | 3 | 700 |
1 Invoicing of Group-wide services.
2 Net financial items include SEK 476 (623) million in dividends received during the nine-month period.
CONDENSED PARENT COMPANY BALANCE SHEET
| SEK million | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| ASSETS | |||
| Financial assets | 6,747 | 5,973 | 5,946 |
| Current receivables | 8,760 | 7,668 | 8,333 |
| Cash and cash equivalents | 339 | 394 | 584 |
| TOTAL ASSETS | 15,846 | 14,035 | 14,863 |
| EQUITY AND LIABILITIES | |||
| Equity | 3,626 | 3,793 | 3,886 |
| Untaxed reserves | 122 | 75 | 122 |
| Provisions | - | 11 | 2 |
| Non-current interest-bearing liabilities | 2,394 | 1,343 | 2,363 |
| Current interest-bearing liabilities | 4,996 | 4,561 | 3,522 |
| Current non-interest-bearing liabilities | 4,708 | 4,252 | 4,968 |
| TOTAL EQUITY AND LIABILITIES | 15,846 | 14,035 | 14,863 |
| Pledged assets | - | - | - |
| Contingent liabilities | 206 | 241 | 241 |
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 and additional considerations relating to acquisitions as well as lease liabilities less cash and cash equivalents. |
| Earnings per share | Profit after tax attributable to Parent Company shareholders, divided by the average number of shares outstanding. |
| 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 and additional considerations 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 and additional considerations 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 21-22.
EBITA compared with financial statements in accordance with IFRS
| SEK million | NINE MONTHS2022 | NINE MONTHS2021 | FULL YEAR2021 |
| 2,823 | |||
| Operating profit | 2,278 | 3,141 | |
| Amortisation of intangible assets arising from acquisitions | 494 | 384 | 526 |
| EBITA | 3,317 | 2,662 | 3,667 |
| Acquisition costs | 23 | 34 | 42 |
| EBITA before acquisition costs | 3,340 | 2,696 | 3,709 |
EBITDA compared with financial statements in accordance with IFRS
| SEK million | NINE MONTHS2022 | NINE MONTHS2021 | FULL YEAR2021 |
| 2,823 | |||
| Operating profit | 2,278 | 3,141 | |
| Depreciation of tangible assets | 324 | 292 | 393 |
| Amortisation of intangible assets | 15 | 12 | 20 |
| Amortisation of intangible assets arising from acquisitions | 494 | 384 | 526 |
| EBITDA | 3,656 | 2,966 | 4,080 |
| Acquisition costs | 23 | 34 | 42 |
| EBITDA before acquisition costs | 3,679 | 3,000 | 4,122 |
Net debt compared with financial statements in accordance with IFRS
| SEK million | 30 Sep 2022 | 30 Sep 2021 | 31 Dec 2021 |
| Non-current interest-bearing liabilities including pension provisions | 2,566 | 1,522 | 2,554 |
| Current interest-bearing liabilities | 5,077 | 4,606 | 3,558 |
| Cash and cash equivalents | -1,368 | -1,450 | -1,509 |
| Interest-bearing net debt | 6,275 | 4,678 | 4,603 |
| Put/call options, additional considerations | 1,931 | 1,518 | 1,657 |
| Lease liability | 953 | 717 | 853 |
| Net debt | 9,159 | 6,913 | 7,113 |
Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS
| SEK million | 30 Sep 2022 | 30 Jun 2022 | 31 Mar 2022 | 31 Dec 2021 |
| Total assets | 29,243 | 27,296 | 26,712 | 24,876 |
| Cash and cash equivalents | -1,368 | -1,255 | -1,474 | -1,509 |
| Interest-bearing pension provisions | -65 | -61 | -57 | -57 |
| Non-interest-bearing liabilities | -6,151 | -5,934 | -6,059 | -5,497 |
| Capital employed | 21,659 | 20,046 | 19,122 | 17,813 |
| Goodwill and other intangible assets | -17,753 | -16,624 | -16,234 | -15,497 |
| Capital employed excluding goodwill and other intangible assets | 3,906 | 3,422 | 2,888 | 2,316 |
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 | Q3 2022 | Q22022 | Q12022 | Q42021 | |
| Capital employed | 19,660 | 21,659 | 20,046 | 19,122 | 17,813 | |
| Capital employed excluding goodwill and other intangible assets | 3,133 | 3,906 | 3,422 | 2,888 | 2,316 | |
| Total | ||||||
| EBITA | 4,353 | 1,103 | 1,221 | 1,016 | 1,013 | |
| Return on capital employed | 22.1% | |||||
| Return on capital employed excluding goodwill and other intangible assets | 139% |