Interim report January – March 2025

NET ASSET VALUE AND THE LATOUR SHARE

• The net asset value was SEK 213 per share at the end of the period compared with SEK 215 per share at the start of the year. This is a decrease of 1.2 per cent. By comparison, the Stockholm Stock Exchange’s Total Return Index (SIXRX) decreased by 0.2 per cent. The net asset value was SEK 209 per share at 28 April.¹
• The total return on the Latour share was -1.3 per cent compared with the SIXRX, which decreased 0.2 per cent.

INDUSTRIAL OPERATIONS

• At the start of the year, adjusted operating profit was introduced as a metric in the industrial operations, which is equivalent to the reported operating profit adjusted for acquisition-related amortisations and larger restructuring costs (see page 22 for definition). This metric will more accurately reflect the underlying earnings performance of the industrial operations. See page 5 for the derivation.
• The industrial operations’ order intake increased by 21 per cent to SEK 7,563 m (6,264 m). Adjusted for exchange rate effects, this equates to growth of 10 per cent for comparable entities.
• The industrial operations’ net sales increased by 13 per cent to SEK 6,884 m (6,122 m). Adjusted for exchange rate effects, this equates to growth of 1 per cent for comparable entities.
• The industrial operations’ adjusted operating profit increased by 4 per cent to SEK 899 m (868 m), which equates to an operating margin of 13.1 (14.2) per cent.
• The acquisitions of the Turkish company Arkel for Innovalift, the German company Howatherm for Swegon and the German company HDS Group for LSAB within Latour Industries were finalised in January. On 7 January, Hultafors Group acquired the Danish company Lyngsøe Rainwear ApS. On 14 February, Swegon acquired the US company American Geothermal.

THE GROUP

• Consolidated net sales totalled SEK 6,884 m (6,122 m), and profit after financial items was SEK 946 m (2,154 m). The net impact of impairments and reversals of impairments of shares in associates on the income statement in the period was SEK -532 m (583 m).
• Consolidated profit after tax was SEK 812 m (1,994 m), which is equivalent to SEK 1.25 (3.11) per share.
• The Group reported net debt of SEK 17,080 m (11,783 m). Net debt, excluding lease liabilities recognised under IFRS 16, was SEK 15,384 m (10,298 m) and is equivalent to 10 (8) per cent of the market value of total assets.

INVESTMENT PORTFOLIO

• During the first quarter, the value of the investment portfolio decreased by 2.7 per cent adjusted for changes in the portfolio. The benchmark index (SIXRX) decreased by 0.2 per cent.
• During the quarter, Latour increased its holding in CTEK by 1,275,000 shares.

EVENTS AFTER THE REPORTING PERIOD

• On 3 April, Innovalift acquired the UK company Syntium Lifts. More details can be found on page 4.

¹The calculation of the net asset value on 28 April was based on the value of the investment portfolio at 17.30 on 28 April and the same values as on 31 March were used for the unlisted portfolio.

Comments from the CEO
“Latour’s industrial operations are developing positively even in the face of the geopolitical and economic uncertainties. Demand is relatively good, although there are variations across regions and sectors. Positive market signs at the start of this year gave way to a more cautious tone towards the end of the quarter, due the considerable uncertainty surrounding trade war, inflation and interest rates. However, we remain confident that our operations are in a good position to manage the current challenges and, as in the past, we are well prepared for any changes in the demand environment.

The impact of the US tariffs will affect our business areas to different degrees. 11 per cent of the industrial operations’ total sales are in the US. Caljan, Hultafors Group, REAC within Latour Industries and Nord-Lock Group have slightly more exposure to the US. We have local production to some extent, but the figures also include exports to the US that will be affected. The tariffs had no material impact on the first quarter financial statements. We will try to pass any additional costs incurred because of tariffs to the customer to the extent possible. If there are situations that cannot be addressed through pricing, we will implement other preventive measures to minimise the impact going forward.

During the first quarter, total order intake grew by 21 per cent and net sales by 13 per cent. Completed acquisitions boosted order intake by 10 per cent and net sales by 11 per cent. By the end of the quarter, the order book had increased to SEK 6,675 m, which ensures a good invoicing trend in the coming quarters.  The adjusted operating profit increased to SEK 899 m (868 m) with an operating margin of 13.1 (14.2) per cent. We are maintaining good cost control, but significant fluctuations in exchange rates are adversely affecting the gross margin in some parts of the operations. Cash flow was slightly weak at the beginning of the year, which largely follows normal seasonal patterns but is also a consequence of increased net sales. Cash flow from operating activities reached SEK 436 m (630 m).

We are continuing to make long-term and forward-looking investments in both existing and new businesses. Despite the current economic slowdown, Latour’s financial strength allows us to invest in growth opportunities, but always in a prudent and responsible manner. The level of acquisition activity have been high during the first months of the year. We completed five acquisitions during the quarter and another one in early April. These acquisitions add almost SEK 1.6 billion in annual revenue growth. More information about our acquisitions can be found on page 4.

The stock market was characterised by subdued activity in the first quarter. During the quarter, the net asset value of Latour decreased by 1.2 per cent and the value of our portfolio of listed holdings decreased by 2.7 per cent. By comparison, the benchmark index SIXRX has fallen by 0.2 per cent. Most of our listed holdings have reported their first quarter results and the picture is relatively consistent. Given the global situation, the development looks fairly good, and the majority are reporting relatively stable results.”

Johan Hjertonsson
President and CEO

For further information please contact:
Johan Hjertonsson, President and CEO, Tel. +46 702-29 77 93 or
Anders Mörck, CFO, Tel. +46 706-46 52 110

Conference call
President and CEO Johan Hjertonsson and CFO Anders Mörck present the report and answers to questions in a webcasted teleconference today at 10.00 AM (CEST). The conference call will be held in English.

Webcast
Via the webcast you are able to ask written questions.
If you wish to participate via webcast, please use the link: https://latour.events.inderes.com/q1-report-2025

Teleconference
You can ask questions verbally via the teleconference.
If you wish to participate via teleconference, please register on the link below.
After registration you will be provided phone numbers and a conference ID to access the conference.
https://conference.inderes.com/teleconference/?id=50051326

The information contained in this report constitutes information which Investment AB Latour (publ) is required to disclose under the EU Market Abuse Regulation. The information was provided by the above contact persons for publication on 29 April 2025 at 08.30 CEST.