FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2023
===== SIDA 1 =====
Interim Report 1, 2023
› SALES totalled SEK 11,646 million (8,749) million
› PROFIT AFTER NET FINANCIAL ITEMS amounted to SEK 1,654 (906) million
› PROFIT AFTER TAX was SEK 1,274 (680) million
› EARNINGS per share before and after dilution, based on the average
number of shares outstanding during the period, were SEK 0.63 (SEK 0.33)
› ACQUISITION OF-65% of the shares in the Canadian stove company Miles Industries Ltd (2023)
===== SIDA 2 =====
2 NIBE · INTERIM REPORT 1, 2023
CEO Gerteric Lindquist’s report
Strong start to the year
Continued strong demand and clear improvement in supply chain situation.
In the first three months of the year, the Group’s sales grew by 33.1%
(28.1%), of which 27.8% (26.8%) was organic growth. The weak Swedish
krona had a positive effect on sales growth, as did the price increases
introduced in the past 12 months. In real terms, organic growth was well
above the target of 10%, however.
When comparing the first quarter of 2023 with the corresponding
period in the previous year, it is necessary to bear in mind that, relatively
strong growth notwithstanding, the first quarter of 2022 was charact -
erized by our sub -suppliers’ inability to supply requested quantities
while at the same time implementing frequent, as well as steep, price
increases.
The continued strong growth in demand is primarily due to the tran-
sition to a more sustainable society and volatile energy prices. With re-
gard to the difficulties relating to materials and components supply, our
sub-suppliers have for several quarters worked purposefully to adapt to
the much higher level of demand, and we are delighted to see a signifi-
cant improvement in both supply chain capacity and supply chain se-
curity. Unfortunately, this generally positive development has been
marred by the fact that a few strategic suppliers are still lagging behind
in their efforts to increase capacity. This means our supply chain prob-
lems continued in the quarter just ended. We expect to be able to grad-
ually return to a more normal supply chain situation from the st art of
the second half of the year.
The business area NIBE Climate Solutions continued to report very
strong growth in all targeted markets in Europe and the market is also
taking off in North America. To be able to achieve acceptable delivery
performance, significant efforts have been made to safeguard our sub-
suppliers’ delivery capacity both in the short term and from a long-term
perspective. We are delighted that we are now starting to see the ef-
fects of these painstaking efforts, although we are relu ctant to predict
a return to a more normal supply chain situation until the second half of
the year. Alongside this work, we are also implementing a very ambi-
tious investment programme to ensure that we are always at the fore-
front in terms of our development capacity, our production capacity and
our market presence.
The growth in sales enabled us to post a sharp increase in operating
profit. The gradual improvement in delivery capacity among our sub -
suppliers has also boosted our productivity as it has enabled production
to run more smoothly. Altogether, this resulted in a sharp improvement
in operating margin. However, this should be viewed against the back-
ground that operating profit in 2022 was burdened by write -downs of
SEK 114 million in respect of our Russian operations.
The business area NIBE Stoves also recorded continued strong
growth, particularly in the wood -fired products category in Europe. As
before, the supply chain situation remained challenging, due to a con-
tinued shortage of a few, absolu tely crucial, input goods. In this busi-
ness area too, supply chain capacity is not expected to return to some-
thing akin to normal until later this year.
Our own production capacity is gradually being expanded as a result
of an ambitious investment programme that also includes large invest-
ments in automation and robotics.
Our major focus on development of products with lower particle
emissions is starting to bear fruit and we have begun introducing this
product concept.
The strong growth in sales also boosted operating profits and com-
bined with better price balance and good cost control, the operating
margin also improved.
Calendar
May 16, 2023
08.00 (CEST) Interim Report 1, January – March 2023
11.00 (CEST) Teleconference (in English):
Presentation of Interim Report 1, 2023 and opportunity to ask
questions.
Registration on our website www.nibe.com is required in order to
access the presentation images and to obtain a code to be able to
ask questions.
17.00 (CEST) Annual General Meeting
August 17, 2023
Interim Report 2, January – June 2023
November 15, 2023
Interim Report 3, January – September 2023
===== SIDA 3 =====
NIBE · INTERIM REPORT 1, 2023 3
The business area NIBE Element reported mostly strong demand, par-
ticularly in product areas associated with sustainability. Pure consumer
goods performed less well, however. Demand in the semiconductor in-
dustry has also declined since the fourth quarter of 2022, when the USA
introduced restrictions on trade with China in respect of certain high
technology equipment. However, this is expected to be a temporary dip
as semiconductor production capacity is now being expanded in both
North America and Europe.
This business area too was unabl e to escape supply chain disrup-
tions, which have greatly tested the organization in terms of adaption
and unconventional solutions in order to maintain a decent level of sup-
ply chain security as far as possible. The assessment is that a return to
a more stable supply chain situation should hopefully take place in the
second half of the year.
The increase in sales together with good cost control and agility and
adaptability resulted in an improved operating profit, while the operat-
ing margin declined slightly, primarily as a result of a change in produc-
tivity.
Investments
Investments in our existing businesses amounted to SEK 639 million in
the first quarter, compared with SEK 478 million in the previous year.
Excluding leases, depreciation amounted to SEK 288 million, compared
with SEK 260 million in the first quarter of 2022. In view of the expected
continued good market conditions in all three business areas, together
with further automation, rationalizations and sustainable development,
the rate of investment in our existing businesses will remain high. In the
next three to four years alone, accumulated investments are expected
to amount to around SEK 10 billion, of which around half will comprise
increased production capacity.
Profit
Operating profit in the first quarter improved by 86.5% compared with
the corresponding period in the previous year and the operating margin
rose from 10.8% to 15.1%.
Profit after net financial items improved by 82.6% in the first quarter,
while the profit margin rose to 14.2% from 10.4% in the previous year.
Excluding the effect of one-off write-downs of SEK 114 million in re-
spect of our Russian operations in the first quarter of 2022, the operat-
ing margin in the first quarter of the previous year was 12.1% and the
profit margin was 11.7%.
Gerteric Lindquist
Managing Director and CEO
Outlook for 2023
⋅ Our corporate philosophy and our strong range of products, with
their focus on sustainability and energy efficiency, are in tune with
the times because the transition to a fossil-free society is
considered to be irrevocable.
⋅ We are well prepared to continue being proactive on acquisitions.
⋅ Our internal efforts to enhance efficiency, combined with our
rigorous cost control, will ensure consistently healthy margins.
⋅ All three business areas have a good geographical spread, which
makes us less vulnerable to local downturns in demand.
⋅ Our decentralised organisation, based on independent units, is well
proven and creates the conditions for greater motivation and
flexibility.
⋅ The pandemic effects are continuing to fade, which is a very
significant and positive factor.
⋅ The problems relating to sub-suppliers are expected to gradually
improve over the year.
⋅ The effects of the war in Ukraine, general political unrest, interest
rate developments and high energy prices are factors that are
difficult to predict, however.
⋅ However, as is our habit, and based on experience, we remain
cautiously optimistic about our full-year performance.
Markaryd, May 16, 2023
Gerteric Lindquist
Managing Director and CEO
===== SIDA 4 =====
4 NIBE · INTERIM REPORT 1, 2023
Sales
The Group’s net sales totalled SEK 11,646 million (SEK 8,749 million) . This
correspond to growth of 33.1%. Of the total increase in sales of SEK 2,897
million, acquired sales amounted to SEK 464 million, which means that
organic sales increased by 27.8%.
Profit
Profit for the year after net financial items amounted to SEK 1,654 million.
This corresponds to an 82.6% increase in earnings compared with 2022.
In the same period in the previous year, profit after net financial items
amounted to SEK 906 million. At the end of the period, net financial items
amounted to SEK -101 million, an increase of SEK 66 million compared
with the same period in the previous year. The increase in net financial
costs was due the general inter est rate situation because the Group’s
credit facilities mostly have variable interest rates. Profit for the year
was weighed down by acquisition costs of SEK 30 (3) million . Return on
equity, was 17.7% (15.6%).
Acquisitions
At the beginning of January 2023, we acquired 65% of the shares in the
Canadian stove company Miles Industries Ltd, which has sales of around
CAD 75 million. We have an agreement to acquire the outstanding sha-
res not later than in 2026. The company was consolidated into NIBE
Stoves as of January 2023. The acquisition balance sheet is still provis-
ional.
Investments
During the year, the Group invested a total of SEK 1,341 (492) million. A
total of SEK 702 (14) million of the investments related to acquisitions
of operations. The remaining SEK 639 (478) million mainly comprised in-
vestments in machinery and equipment and buildings in existing oper-
ations. The investment amount relating to acquisitions is based on both
initial considerations and an estimate of additional considerations to be
paid.
Cash flow and financial position
Cash flow from operating activities before changes in working capital
amounted to SEK 1,419 (939) million. Cash flow after changes in working
capital amounted to SEK 392 (-145) million. The increase in working ca-
pital was primarily due to stockbuilding ahead of peak season.
Interest-bearing liabilities at the end of the period amounted to SEK
11,701 million. At the start of the year, the corresponding figure was SEK
11,357 million. At the end of March, the Gr oup had cash and cash equi-
valents of SEK 4,543 million, as against SEK 5,441 million at the start of
the year. The equity/assets ratio at the end of the period was 52.3%,
compared with 51.8% at the start of the year and 50.3% at the corre-
sponding time in the previous year.
Parent
Parent activities comprise Group executive management functions,
certain shared Group functions and financing. Sales for the year totalled
SEK 15 (16) million and profit after financial items was SEK 12 ( -29)
million
NIBE Group
Key figures
Q1
2023
Q1
2022
Past 12
months
Full
year
2022
Net sales SEK m 11,646 8,749 42,968 40,071
Growth % 33.1 28.1 31.2 30.0
of which acquired % 5.3 1.3 4.4 3.5
Operating profit SEK m 1,755 941 6,677 5,863
Operating margin % 15.1 10.8 15.5 14.6
Profit after net financial items SEK m 1,654 906 6,423 5,675
Profit margin % 14.2 10.4 14.9 14.2
Equity/assets ratio % 52.3 50.3 52.3 51.8
Return on equity % 17.7 15.6 19.5 18.1
Group sales by geographical region
Net sales
Past nine quarters (in millions of SEK)
Profit after financial items
Past nine quarters (in millions of SEK)
===== SIDA 5 =====
NIBE · INTERIM REPORT 1, 2023 5
Business area trends
Quarterly data
Consolidated income statement 2023 2022 2021
(SEK million) Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net sales 11,646 8,749 9,656 9,999 11,667 6,831 7,790 7,823 8,388
Operating expenses -9,891 -7,808 -8,087 -8,534 -9,779 -5,966 -6,568 -6,621 -7,209
Operating profit 1,755 941 1,569 1,465 1,888 865 1,222 1,202 1,179
Net financial items -101 -35 -22 -14 -117 -32 -51 -31 -36
Profit after net financial items 1,654 906 1,547 1,451 1,771 833 1,171 1,171 1,143
Tax -380 -226 -310 -343 -401 -188 -259 -260 -233
Net profit 1,274 680 1,237 1,108 1,370 645 912 911 910
Net sales, business areas
NIBE Climate Solutions 7,736 5,583 6,367 6,344 7,782 4,310 5,199 5,142 5,476
NIBE Element 3,013 2,474 2,672 2,842 2,937 2,001 2,082 2,125 2,214
NIBE Stoves 1,250 900 830 1,042 1,239 705 696 746 904
Elimination of Group transactions -353 -208 -213 -229 -291 -185 -187 -190 -206
Group total 11,646 8,749 9,656 9,999 11,667 6,831 7,790 7,823 8,388
Operating profit, business areas
NIBE Climate Solutions 1,353 612 1,204 1,022 1,500 579 900 907 852
NIBE Element 280 250 299 325 249 216 223 213 224
NIBE Stoves 165 103 95 137 216 85 82 103 143
Elimination of Group transactions -43 -24 -29 -19 -77 -15 17 -21 -40
Group total 1,755 941 1,569 1,465 1,888 865 1,222 1,202 1,179
Sales per business area, last nine quarters (SEK million) Each business area’s share of total sales
(Q1, 2023)
Operating profit per business area, last nine quarters (SEK million) Each business area’s share of total profit
(Q1, 2023)
===== SIDA 6 =====
6 NIBE · INTERIM REPORT 1, 2023
Market
We see continued significant interest among end -consumers in both
saving energy and finding fossil-free alternatives to natural gas and oil.
This is driving the transition to a society that is less dependent on fossil
fuels. We have long been convinced that heat pump technology is the
best solution for energy-efficient and environmentally-friendly climate
control of both small and large properties. Now the International Energy
Agency (IEA) has confirmed this in a report stating that heat pumps are
the best option for reduced climate impact.
Heat pumps are now rapidly becoming established as the solution to re-
ducing energy consumption related to climate control of properties and to
reducing emissions of carbon dioxide throughout Europe. We are therefore
continuing to see very strong demand for all our heat pump solutions. The
North American market has also been influenced by the development in
Europe, and this is boosting demand for alternatives to current climate con-
trol products, which are primarily based on fossil fuels.
Although we have sharply increased our production capacity, our
delivery capability continues to be adversely affected by external cir-
cumstances such as shortages of a number of critical components. The
majority of our sub -suppliers have seen a substantial improvement in
delivery capability, however.
To solve the climate change issue, in which climate control of prop-
erties is a major factor, and speed up the transition to a more sustaina-
ble society, the clear objective in a growing number of countries is that
products that use fossil fuels such as oil and gas should be phased out
in the long term, which is something that benefits our sector both in the
short and long term.
All our targeted markets in Europe continue to show very good
growth. In the Netherlands, which has made a lot of progress in the
transition to fossil-free fuels, the market development for heat pumps
remains strong. The German market, which is important to us, is also
showing very strong growth. This is an effect both of fa vourable state
subsidies offered to encourage the replacement of existing oil and gas
boilers with energy-efficient and environmentally-friendly heat pumps,
and the urgent need to become less dependent on Russian oil and gas.
All the Nordic markets are also growing, which benefits us as the market
leader in all the Nordic countries.
All our units in Eastern Europe are also reporting strong expan-
sion. Several of these markets, where we are well represented both
through our own production of water heaters and sales of heat
pumps, are growing very rapidly as result of efforts to reduce de-
pendence on coal, gas and oil.
The rate of growth in the Swedish domestic market for heat pumps
increased slightly in the first quarter thanks to supply chain capacity in
the industry as regards heat pumps having improved. Underlying de-
mand remains strong in the replacement products market, while new
production of single -family houses has slowed down markedly. Our
market position in both segments remains strong, which means we are
well placed to adapt to changes in the market
Operations
We have remained fully focused on securing access to raw materials
and components while also increasing capacity in our production units,
which has resulted in significantly improved delivery capability. We have
also seen a positive change in North America, where low unemployment
has been a challenge when it comes to finding and retaining workers.
During the first few months of the year we carried out major mar-
keting initiatives. In February, we attended one of the world’s biggest
international trade fairs, AHR Expo in Atlanta, USA. In March, we partic-
ipated in the international trade fair ISH in Frankfurt in Germany, where
heat pumps and the R290 refrigerant were a recurring theme, really re-
inforcing the commitment to the ongoing transition to environmentally-
friendly and fossil -free climate control. Our participation boosts our
profile as a market leader in energy-efficient, environmentally sustain-
able and intelligent product soluti ons for indoor comfort based on re-
newable energy.
Demand is expected to continue to show strong growth and to meet
this we are carrying out large investments in capacity at several of our
European operations. At NIBE in Markaryd an additional new production
line for air/water heat pumps has come on stream, doubling our pro-
duction capacity in this rapidly growing segment in Europe. In Germany,
AIT has built a new heat pump plant to meet demand for heat pump
production capacity. Alongside this, we are also expanding our capacity
for production of pressure vessels, which are an important component
in heat pump installations.
We are continuously focusing major resources on product develop-
ment and the introduction of high-performance products in all applica-
tion areas. This is one of the basic requirements for continued expan-
sion. We have already launched the natural refrigerant R290 for two of
our three heat pump product families and are ahead of EU requirements
in this respect.
Our brand new innovation center in Markaryd has partially come on
stream, with more operations moving in gradually during the spring. The
center will enable us to safeguard the quality of our future product de-
velopment and attract new development engineers.
Operating profit improved shar ply as result of volume growth and
improved materials supply, together with a continued cautious ap-
proach to fixed costs. Exchange rates also had a positive impact, while
our own price increases have now taken almost full effect. In total, this
means the operating margin improved significantly.
Business area NIBE Climate Solutions
Key figures
Q1
2023
Q1
2022
Past 12
months
Full
year
2022
Net sales SEK m 7,736 5,583 28,228 26,076
Growth % 38.6 29.5 31.9 29.6
of which acquired % 3.5 1.2 4.2 3.7
Operating profit SEK m 1,353 612 5,079 4,338
Operating margin % 17.5 11.0 18.0 16.6
Assets SEK m 34,535 29,484 34,535 33,813
Liabilities SEK m 6,543 4,933 6,543 6,504
Investments in non-current
assets SEK m 453 320 1,569 1,436
Amortisation/Depreciation SEK m 229 210 893 875
Sales and profit
Sales for the period totalled SEK 7,736 million, com-
pared with SEK 5,583 million in the corresponding pe-
riod in the previous year. Of the increase in sales of SEK
2,153 million, acquired sales accounted for SEK 197
million, which means that organic growth was 35.1%.
Operating profit for the period totalled SEK 1,353
million, compared with SEK 612 million in the previous
year. This equates to an operating margin of 17.5%
compared with 11.0% for the previous year. The oper-
ating margin for the past 12 months is thus 18.0%.
===== SIDA 7 =====
NIBE · INTERIM REPORT 1, 2023 7
Large presence at international ISH fair
After four years, the large international trade fair ISH in Frankfurt returned in March. This time, the focus of the entire event was
the ongoing transition in Europe to a fossil-free society and climate control of properties, with particular focus on heat pumps and
natural refrigerants. NIBE Climate Solutions was well represented, with our companies showcasing energy-efficient and environ-
mentally friendly climate control solutions across a total of 1,300 square metres of exhibition space. We were also able to r eport
that NIBE started using R290 propane, the refrigerant everyone was talking about, as far back as 1997.
NIBE AB
CTC
Rhoss
Argoclima
AIT
Waterkotte
TIKI
DZD
===== SIDA 8 =====
8 NIBE · INTERIM REPORT 1, 2023
Market
The unprecedented growth in demand for wood-fired stove products in
Europe continued in the first quarter of the year. Although energy prices
have returned to more normal levels, the unsettled external environ-
ment has been a strong driver behind the trend to invest in an auxiliary
heat source to secure heat supply ahead of next winter too.
Underlying demand in Scandinavia remained very strong, but the
continued supply chain challenges throughout the industry resulted in
deliveries of products to customers not reaching the expected level,
although we were able to increase our production volumes. While there
is significant interest in investing in a stove product, new production of
single family houses is falling, which is having the opposite effect on
demand.
In Germany, one of the markets reporting the largest growth in 2022,
demand remains strong. It is clear that the dependence on gas needs to
be reduced, which means interest in alternative heat sources is grow-
ing. Demand is also driven by government requirements under which
use of older fireplaces that do not meet applicable Ecodesign require-
ments will not be permissible in future.
In the UK too, demand for wood-fired products remains strong, with
the high energy costs in 2022 providing an incentive to invest in mod-
ern, more efficient stoves. Demand for gas-fired and electric stoves was
weaker. In the same way, rising pellets prices in France resulted in de-
mand for pellets -fired stoves falling, at the same time as demand for
wood-fired products rose sharply.
In North America, demand for gas -fired products has declined and
the total market is now back to the more normal levels seen before the-
pandemic. Demand for wood-fired products remains good as these are
a reliable auxiliary heat source in case of malfunction of the ordinary
heating system in the home.
Operations
Extremely high inflow of orders for wood-fired products in the past few
years has resulted in unusually large backlogs of orders throughout the
industry, which in turn has resulted in long delivery times for new or-
ders. We are working very hard to further increase vol umes at our pro-
duction plants but the continued shortage of key components from a
small number of sub -suppliers is making it difficult to meet customer
demand in the short term. We expect to see a gradual improvement over
the year, however. In North America, production capacity for gas -fired
products has been adjusted to match prevailing market conditions.
The first large trade fair for stove products took place in April. It was
held in Germany and was very well received by visitors. Several of our
brands were represented at the fair to meet customers in person and
launch new products. Contura, our Swedish brand, presented its brand
new future concept, Contura Zero. This concept means that products
can have built-in cleaning equipment that significantly reduces particle
emissions without adversely impacting the design and flame visibility of
the products.
Shortly after the turn of the year, we acquired 65% of the shares in
Miles Industries of Canada, a family -owned company whose products
are sold under the well-known Valor brand. The company has built up a
strong network of retailers in both Canada and the USA over several
decades, resulting in a very strong and well-established market position
in North America. In total, we now have a very strong platform in North
America for continued profitable growth.
Both our operating profit and operating margin increased in the first
quarter of the year as a result to higher sales volumes together with
essential price increases, favorable exchange rates and a continued
cautious approach to fixed costs.
Business area NIBE Stoves
Key figures
Q1
2023
Q1
2022
Past 12
months
Full
year
2022
Net sales SEK m 1,250 900 4,362 4,011
Growth % 39.0 27.6 34.4 31.5
of which acquired % 21.5 0.0 11.1 5.4
Operating profit SEK m 165 103 613 551
Operating margin % 13.2 11.5 14.1 13.7
Assets SEK m 6,143 4,087 6,143 5,000
Liabilities SEK m 1,158 661 1,158 1,042
Investments in non-current
assets SEK m 53 16 160 123
Amortisation/Depreciation SEK m 44 32 162 150
Sales and profit
Sales for the period totalled SEK 1,250 million, com-
pared with SEK 900 million for the corresponding pe-
riod last year. Of the increase in sales of SEK 350 mil-
lion, acquired sales accounted for SEK 193 million,
which means that organic growth was 17.5%.
Operating profit for the period totalled SEK 165
million, compared with SEK 103 million in the previous
year. This equates to an operating margin of 13.2%
compared with 11.5% for the previous year. This
means that the operating margin for the past 12
months is 14.1%.
In April, CONTURA participated in the new trade fair – WORLD OF FIREPLACES -
in Leipzig in Germany, which attracted more than 200 exhibitors from our indus-
try. Contura, which represents a completely new trade fair concept, launched a
brand new product concept focusing on technology of the future. The trade fair
was well attended and there was a wonderful atmosphere in and around
Contura’s stand.
===== SIDA 9 =====
NIBE · INTERIM REPORT 1, 2023 9
Market
Demand in the majority of the business area’s market segments re-
mained strong in the first quarter of the year. However, both demand
and deliveries were still affected by the various disruptions in interna-
tional supply chains. Although this situation has improved compared
with the previous year, it still has a significant impact on us and requires
significant flexibility and preparedness, as well as gradual adaptation of
operations.
Besides the generally strong demand, we saw a strong increase in
several of our market segments, particularly products linked to sustain-
ability, renewable energy and energy -efficient solutions for climate
control, such as heat pumps. This applies both to products for private
and commercial use.
The ambition to reduce greenhouse gas emissions also means that
the number of industrial projects based on electric heating is growing
steadily. Demand for various kinds of energy storage solutions is also
growing. The majority of these solutions involve some form of electric
heating and control. Demand for produ cts for the wind power industry
declined as a result of a significant drop in the number of projects in
2023, largely due to delays in permitting processes. However, the
assessment is that this market will improve significantly next year.
Demand for produ cts in the consumer segment, such as domestic
appliances and direct electric heating, declined compared with the pre-
vious year. This was due to a combination of lower consumer demand
and inventory adjustments by our customers. The market for commer-
cial products, for example catering equipment and commercial coffee
machines, also reported continued strong demand.
Electrification of vehicles means new business opportunities for us,
both with regard to passenger cars and commercial vehicles.
Demand in the semiconductor industry has fallen since the USA in-
troduced trade restrictions in respect of exports of advanced technol-
ogy to China at the end of 2022, as the same time as demand in certain
product segments declined. Demand is expected to pick up in the long
term, however, a trend that will be further strengthened by future in-
vestments in expansion of the semiconductor industry in both North
America and Europe, in order to reduce dependence on Asia in this im-
portant technology area.
Operations
To meet increased demand, we have continued to increase production
capacity at our units both through recruitment and investments in ca-
pacity in the segments reporting strong organic growth. At the same
time, we are reducing production capacity in segments with falling de-
mand. In parallel with this, we have implemented additional investments
in robotics and automation as well as productivity improvement
measures in order to maintain competitiveness and keep the operating
margin at the target level of 10%.
Sharp increases in the price of materials, services and energy, as
well as rising freight costs, have also forced us to introduce successive
price rises of our own to compensate for this development. Overall, our
customers have been understanding and have accepted these price ad-
justments.
Exchange rates remain volatile, with a considerable effect on pricing
and competitiveness. In this situation, our international presence with
production units in different currency zones gives us a clear advantage.
In general, there are labor shortages in many of the countries where we
have production units.
Despite falling demand in certain key product segments, overall
growth has been strong and we have been able to increase our operat-
ing profit, thanks to good control of fixed costs and rapid adjustment of
each business area to the prevailing demand and delivery situation.
Business area NIBE Element
Key figures
Q1
2023
Q1
2022
Past
12
months
Full
year
2022
Net sales SEK m 3,013 2,474 11,464 10,925
Growth % 21.8 23.7 28.9 29.7
of which acquired % 3.0 1.7 2.2 1.9
Operating profit SEK m 280 250 1,153 1,123
Operating margin % 9.3 10.1 10.1 10.3
Assets SEK m 14,419 11,764 14,419 14,100
Liabilities SEK m 2,485 2,085 2,485 2,276
Investments in non-current
assets SEK m 131 143 597 609
Amortisation/Depreciation SEK m 118 103 474 459
Sales and profit
Sales for the period totalled SEK 3,013 million, com-
pared with SEK 2,474 million in the corresponding
period in the previous year. Of the increase in sales
of SEK 539 million, acquired sales accounted for
SEK 73 million, which means that organic sales in-
creased by 18.8%.
Operating profit for the period totalled SEK 280
million, compared with SEK 250 million in the previ-
ous year. This equates to an operating margin of
9.3% compared with 10.1% for the previous year.
This means that the operating margin for t he past
12 months is 10.1%.
We are seeing strong interest in electric heat solutions for industrial pro-
cesses. The demand is due to businesses wishing to make the transition from
fossil fuels to electric heating in order to reduce their CO2 emissions. The
heat solution shown above is a customized product by our Danish company
JEVI for drying of raw materials within the food industry.
===== SIDA 10 =====
10 NIBE · INTERIM REPORT 1, 2023
Condensed income statement
Group Parent
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Past 12
months
Full year
2022 Jan-Mar
2023
Jan-Mar
2022
Net sales 11,646 8,749 42,968 40,071 15 16
Cost of goods sold -7,748 -6,173 -29,037 -27,462 0 0
Gross profit 3,898 2,576 13,931 12,609 15 16
Selling expenses -1,505 -1,165 -5,261 -4,921 0 0
Administrative expenses -777 -594 -2,831 -2,648 -62 -35
Other operating income 139 124 838 823 0 0
Operating profit 1,755 941 6,677 5,863 -47 -19
Net financial items -101 -35 -254 -188 59 -10
Profit after net financial items 1,654 906 6,423 5,675 12 -29
Tax -380 -226 -1,434 -1,280 0 0
Net profit 1,274 680 4,989 4,395 12 -29
Net profit attributable to Parent
shareholders 1,270 662 4,959 4,351 12 -29
Net profit attributable to non-
controlling interest 4 18 30 44 0 0
Net profit 1,274 680 4,989 4,395 12 -29
Includes amortisation/depreciation
according to plan as follows 391 345 1,530 1,484 0 0
Net profit per share before and after
dilution, SEK 0.63 0.33 2.46 2.16 0 0
Statement of comprehensive income
Net profit 1,274 680 4,989 4,395 12 -29
Other comprehensive income
Items that will not be reclassified to
profit or loss
Actuarial gains and losses in retirement
benefit plans
0 0 160 160 0 0
Tax 0 0 -34 -34 0 0
0 0 126 126 0 0
Items that may be reclassified to profit
or loss
Cash flow hedges -1 18 -19 0 0 0
Hedging of net investments -21 -5 -107 -91 0 0
Exchange differences on translation of
foreign operations 92 436 2,779 3,123 0 0
Tax 18 -32 -122 -172 0 0
88 417 2,531 2,860 0 0
Total other comprehensive income 88 417 2,657 2,986 0 0
Total comprehensive income 1,362 1,097 7,646 7,381 12 -29
Comprehensive income attributable to
Parent shareholders
1,358 1,076 7,601 7,319 12 -29
Comprehensive income attributable to
non-controlling interest
4 21 45 62 0 0
Total comprehensive income 1,362 1,097 7,646 7,381 12 -29
===== SIDA 11 =====
NIBE · INTERIM REPORT 1, 2023 11
Condensed balance sheet
Group Parent
(SEK million) 31 Mar 2023 31 Mar 2022 31 Dec 2022 31 Mar 2023 31 Mar 2022 31 Dec 2022
Intangible assets 23,082 20,696 22,568 0 0 0
Property, plant and equipment 9,002 6,422 8,273 0 0 0
Financial assets 1,051 642 1,001 18,420 16,534 18,162
Total non-current assets 33,135 27,760 31,842 18,420 16,534 18,162
Inventories 11,334 7,435 10,191 0 0 0
Current receivables 7,546 5,886 7,144 120 96 379
Investments in securities, etc 191 164 190 0 0 0
Cash and bank balances 3,854 4,036 4,627 0 102 0
Total currents assets 22,925 17,521 22,152 120 198 379
Total assets 56,060 45,281 53,994 18,540 16,732 18,541
Equity 29,335 22,754 27,973 9,839 9,047 9,827
Non-current liabilities, non-interest
bearing 6,201 5,307 5,869 1,520 547 1,500
Non-current liabilities, interest bearing 7,091 7,662 6,399 4,251 5,500 4,250
Current liabilities, non-interest bearing 8,823 6,701 8,795 80 38 114
Current liabilities, interest bearing 4,610 2,857 4,958 2,850 1,600 2,850
Total equity and liabilities 56,060 45,281 53,994 18,540 16,732 18,541
Key figures
Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Growth % 33.1 28.1 30.0
Operating profit SEK m 1,755 941 5,863
Operating margin % 15.1 10.8 14.6
Profit margin % 14.2 10.4 14.2
Investments in non-current assets, including acquisitions SEK m 1,341 492 3,745
Available cash and equivalents SEK m 4,543 4,624 5,441
Working capital incl. cash and bank balances SEK m 14,102 10,820 13,357
as share of net sales % 32.8 33.0 33.3
Working capital excl. cash and bank balances SEK m 10,057 6,620 8,540
as share of net sales % 23.4 20.2 21.3
Interest-bearing liabilities/Equity % 39.9 46.2 40.6
Equity/assets ratio % 52.3 50.3 51.8
Return on capital employed % 17.7 14.2 17.7
Return on equity % 17.7 15.6 18.1
Net debt/EBITDA times 0.9 1.1 0.9
Interest coverage ratio times 10.9 11.7 10.1
Data per share
Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Net earnings per share (total 2,016,066,488 shares) SEK 0.63 0.33 2.16
Equity per share SEK 14.53 11.17 13.86
Closing day share price SEK 117.80 105.05 97.10
===== SIDA 12 =====
12 NIBE · INTERIM REPORT 1, 2023
Sales by geographical region
(SEK million) NIBE Climate
Solutions
NIBE
Element
NIBE
Stoves
Eliminations Total
Nordic region 2,074 517 276 -228 2,639
Europe (excl. Nordic region) 3,828 1,129 589 -119 5,427
North America 1,665 1,088 357 -6 3,104
Other countries 169 279 28 0 476
Total 7,736 3,013 1,250 -353 11,646
Time of accounting for sales
(SEK million) NIBE Climate
Solutions
NIBE
Element
NIBE
Stoves
Eliminations Total
Deliverables taken up as revenue once 7,573 3,013 1,250 -353 11,483
Deliverables taken up as revenue gradually 163 0 0 0 163
Total 7,736 3,013 1,250 -353 11,646
SERVICE CONTRACTS
For certain products in Climate Solutions, NIBE offers customers the opportunity to sign one-year service contracts, under which NIBE undertakes to perform
maintenance service and remedy certain defects that are not covered by the warranty provided. The sc ope of defects cannot be reliably predicted, so pricing
is based on experience. Payment is received from customers annually in advance, so deferred income will be taken up as revenue gradually over the coming 12-
month period.
EXTENDED WARRANTY PERIOD CONTRACTS
For certain products in Climate Solutions, NIBE offers customers the opportunity to sign contracts for warranty periods that exceed those provided as standard.
Standard warranty periods depend both on the type of product and the market in question. The longest contracts expire within six years. The scope of defects
cannot be reliably predicted, so pricing is based on experience. Payment is received from customers on delivery of goods. Deferred income will be taken up up
as revenue gradually over the coming six-year period.
Financial instrument measured at fair value
(SEK million) 31 Mar
2023
31 Mar
2022
31 Dec
2022
Current receivables
Currency futures 3 13 10
Commodity futures 0 7 3
Total 3 20 13
Current liabilities and provisions,
non-interest bearing
Currency futures 0 0 11
Commodity futures 2 0 0
Total 2 0 11
No instruments have been offset in the statement of financial position, so all
instruments are recognised at their gross value. For a detailed account of the
measurement process, see Note 29 in the Annual Report for 2022. For other
consolidated financial assets and liabilities, the carrying amounts represen t
a reasonable approximation of their fair value. A specification of the financial
assets and liabilities involved is given in Note 29 in the Annual Report for
2022.
Condensed cash flow statement
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Cash flow from operating activities 1,419 939 5,800
Change in working capital -1,027 -1,084 -3,186
Investing activities -1,066 -492 -2,778
Financing activities -105 34 -151
Exchange difference in cash and
equivalents 7 57 386
Change in cash and equivalents -772 -546 71
Change in equity – summaries
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Opening equity 27,973 21,657 21,657
Effect of applying IAS29* 0 0 186
Adjusted opening equity 27,973 21,657 21,843
Shareholders’ dividend 0 0 -1,008
Dividend to non-controlling interest 0 0 -1
Change in non-controlling interest 0 0 -242
Comprehensive income for the
period 1,362 1,097 7,381
Closing equity 29,335 22,754 27,973
*IAS 29 has been implemented - for more information , see Accounting
policies.
===== SIDA 13 =====
NIBE · INTERIM REPORT 1, 2023 13
Alternative performance
measures
Alternative performance measures are financial measures that
are used by the company’s management and by investors to
evaluate the Group’s profit and financial position using calcula-
tions that cannot be directly derived from the financial state-
ments. The alternative performance measures provided in this
report may be calculated using methods that differ from those
used to produce similar measures that are used by other com-
panies.
Net investments in non-current assets
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Acquisition of non-current
assets 1,350 498 3,767
Disposal of non-current
assets -9 -6 -22
Net investments in non-
current assets, including
acquisitions
1,341 492 3,745
Available cash and cash equivalents
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Cash and bank balances 3,854 4,036 4,627
Investments in securities,
etc. 191 164 190
Unutilised overdraft facilities 498 424 624
Available cash and cash
equivalents 4,543 4,624 5,441
Working capital, including cash and bank balances
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Total current assets 22,925 17,521 22,152
Current liablities and provi-
sions, non-interest bearing
-8,823 -6,701 -8,795
Working capital, including
cash and bank balances 14,102 10,820 13,357
Net sales, past 12 months 42,968 32,750 40,071
Working capital, including
cash and bank balances, in
relation to net sales, %
32.8 33.0 33.3
Working capital, excluding cash and bank balances
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Inventories 11,334 7,435 10,191
Current receivables 7,546 5,886 7,144
Current liablities and provisions, non-interest
bearing -8,823 -6,701 -8,795
Working capital, excluding cash and bank
balances
10,057 6,620 8,540
Net sales, past 12 months 42,968 32,750 40,071
Working capital, excluding cash and bank
balances, in relation to net sales, %
23.4 20.2 21.3
Return on capital employed
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Profit after net financial items, past 12
months 6,423 4,391 5,675
Financial expenses, past 12 months 708 238 626
Profit before financial expenses 7,131 4,629 6,301
Capital employed at start of period 39,330 31,977 31,977
Capital employed at end of period 41,037 33,273 39,330
Average capital employed 40,184 32,625 35,654
Return on capital employed, % 17.7 14.2 17.7
Return on equity
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Profit after net financial items, past 12
months 6,423 4,391 5,675
Standard tax rate, % 20.6 20.6 20.6
Profit after net financial items, after tax 5,100 3,486 4,506
Of which attributable to Parent shareholders 5,070 3,421 4,462
Equity at start of period 27,935 21,438 21,438
Equity at end of period 29,293 22,514 27,935
Average equity 28,614 21,976 24,687
Return on equity, % 17.7 15.6 18.1
===== SIDA 14 =====
14 NIBE · INTERIM REPORT 1, 2023
Net debt/EBITDA
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Non-current liabilities and provisions,
interest bearing 7,091 7,662 6,399
Current liabilities and provisions, interest
bearing 4,610 2,857 4,958
Cash and bank balances -3,854 -4,036 -4,627
Investments in securities, etc. -191 -164 -190
Net debt 7,656 6,319 6,540
Operating profit, past 12 months 6,677 4,544 5,863
Depreciation/amortisation and impairment,
past 12 months 1,561 1,427 1,597
EBITDA 8,238 5,971 7,460
Net debt/EBITDA excluding revaluation of
additional considerations, multiple 0.9 1.1 0.9
Interest coverage ratio
(SEK million) Jan-Mar
2023
Jan-Mar
2022
Full year
2022
Profit after net financial
items 1,654 906 5,675
Financial expenses 167 85 626
Profit before financial
expenses
1,821 991 6,301
Interest coverage ratio,
multiple 10.9 11.7 10.1
The information in this report has not been reviewed by the company’s auditors.
For further information on definitions, please refer to the company’s Annual Report for 2022.
The interim report provides a fair review of the business, financial position and results of the Parent and the Group and describes
the principal risks and uncertainties facing the Parent and companies in the Group.
Markaryd, Sweden, May 16, 2023
Hans Linnarson
Chairman of the Board
Georg Brunstam
Director
Eva Karlsson
Director
Jenny Larsson
Director
Gerteric Lindquist
Managing Director and CEO
Anders Pålsson
Director
Eva Thunholm
Director
Accounting policies
Risks and uncertainties
NIBE Industrier’s consolidated accounts are prepared in accordance with International
Financial Reporting Standards (IFRS). NIBE Industrier’s interim report for the first quarter
of 2023 has been prepared in accordance with IAS 34 Interim Financial Reporting Disclo-
sures in accordance with IAS 34 16A are presented in the financial statements and related
notes as well as in other parts of the interim report.
For the Group, the accounting policies applied in this report are the same as those de-
scribed on pages 100–139 of the Annual Report for 2022. The Group started to apply IAS
29 Financial Reporting in Hyperinflationary Economies in 2022 as a result of its operations
in Turkey. Application had an effect on opening balance equity in 2022 as comparative
figures are not restated.
Reporting for the Parent follows the Swedish Annual Accounts Act and the Swedish
Financial Accounting Standards Board’s recommendation RFR 2 Reporting for Legal Enti-
ties.
Related party transactions have taken place to the same extent as in the previous year
and the same accounting policies have been applied as those described on page 101 of
the company’s Annual Report for 2022.
NIBE Industrier is an international industrial
group that is represented in around 40
countries. As such, it is exposed to several
business and financial risks. Risk manage-
ment is, therefore, an important process rel-
ative to the goals that the company has set
up. Throughout the NIBE Group, efficient
risk management routines are an ongoing
process within the framework of the Group’s
operational management and a natural part
of the continual follow -up of activities. It is
our opinion that no significant risks or un-
certainties have arisen in addition to those
described in NIBE Industrier’s Annual Report
for 2022.
===== SIDA 15 =====
NIBE · INTERIM REPORT 1, 2023 15
Number of shares traded per trading day in thousands
NIBE Industrier AB is obliged by Swedish law (the Securities Market Act and/or the Financial Instruments Trading Act) to publish the informat ion in
this interim report. This information was made available to the media for publication at 08.00 (CEST) on May 16, 2023.
Please email any questions to:
Gerteric Lindquist, MD and Group CEO, gerteric.lindquist@nibe.se
Hans Backman, CFO, hans.backman@nibe.se
NIBE
shares
NIBE’s class B shares are listed on the NASDAQ Nordic Large Cap list in Stockholm, with
a secondary listing on the SIX Swiss Exchange in Zurich. The NIBE share’s closing price
on March 31, 2023 was SEK 117.80.
During the first three months of 2023, NIBE’s share price rose by 21.3%, from SEK
97.10 to SEK 117.80. In the same period, the OMX Stockholm PI (OMXSPI) increased by
7.8%.
At the end of March 2023, the market capitalization of NIBE, based on the latest price
paid, amounted to SEK 237,493 million.
A total of 199,344,086 NIBE shares were traded, which corresponds to a share turn-
over of 39.5% in the first quarter of 2023.
All figures were restated following the 4:1 splits implemented in 2003, 2006, 2016
and May 2021, and the dilution effect of the preferential rights issue in October 2016.
===== SIDA 16 =====
NIBE Group
– an international Group with companies and a
presence worldwide
NIBE Group is an international organization that contributes to a lower carbon footprint
and better utilization of energy. In our three business areas – Climate Solutions, Element
and Stoves – we develop, manufacture and market a wide range of environmentally-
friendly, energy-efficient solutions for indoor climate comfort in all types of properties,
plus components and solutions for intelligent heating and control in industry and infra-
structure.
Since its beginnings in the town of Markaryd in the province of Småland 70 years ago,
NIBE has grown into an international company with an average of 21,300 (20,400) em-
ployees and an international presence. From the very start, the company has been driven
by a strong culture of entrepreneurship and a passion for corporate responsibility. It’s
success factors are long-term investments in sustainable product development and
strategic acquisitions. Combined, these factors have brought about strong, targeted
growth, which generated sales of just over SEK 40 billion (SEK 30 billion) in 2022.
NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic
Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange since 2011.
NIBE Industrier AB (publ)
Box 14, 285 21 MARKARYD
Tel +46 433-27 30 00
www.nibe.com
Corporate ID no.: 55 63 74 – 8309
===== SIDA 17 =====