Year-end report 2020 I.A. 1
Total 289,279 Margin Vehicle sales After market T
otal 154,185 804,737 YEAR-END REPORT 2020 | I.A. HEDIN BIL AB | OCTOBER 1ST - DECEMBER 31ST4th quarter 2020 3.2% 8.2% 4.5% 2019 1.3% 6.5% 2.6% 427,679 1 January - 31 December 2020 2.1% 7.4% 3.3% 2019 1.0% 4.6% 1.9% The margin of operational earnings in vehicles sales amounted to 3.2 percent (1.3 percent). The sales of new cars in comparable business increased by 2 percent during the quarter, while sales of used cars increased by 14 percent. Gross margin in both new and used vehicles increased compared to the same quarter last year. The margin of operational earnings in after sales was 8.2 percent (6.5 percent). Earnings have improved through efficiency improvements and cost reductions. Net sales Sweden Norway Belgium Segment reconciliation Total Operat ional earnings Sweden Norway Belgium Segment reconciliation Total Margin Sweden Norway Belgium Total 4th quarter 2020 3,951,957 1,242,986 1,134,062 33,100 6,362,105 2019 3,917,516 933,790 939,341 128,141 5,918,788 4th quarter 2020 158,838 82,443 41,463 6,535 289,279 4th quarter 2020 4.0% 6.6% 3.7% 4.5% 1 January - 31 December 2020 14,982,030 4,465,292 3,852,581 764,011 24,063,914 2019 15,637,644 3,249,092 3,070,758 343,888 22,301,382 2019 91,841 43,246 8,020 11,078 154,185 1 January - 31 December 2020 415,910 281,031 67,327 40,469 804,737 2019 252,463 97,835 39,111 38,270 427,679 2019 2.3% 4.6% 0.9% 2.6% 1 January - 31 December 2020 2.8% 6.3% 1.7% 3.3% 2019 1.6% 3.0% 1.3% 1.9% The operational earnings in Sweden increased by MSEK 67 in the fourth quarter compared to last year. The sale of new vehicles is lower than last year. The sale of used vehicles continues to be strong and are increasing compared to last year. The profitability improves due to improved margins as well as efficiency improvements in both vehicle sales and aftermarket. Operating earnings in Norway increased by MSEK 39 compared to last year through higher sales of both new and used vehicles. Efficiency improvements in after sales have also contributed to the increased profit. In Belgium the business was partly closed during the autumn due to Covid-19. Despite this, the year ends with high sales and the operational earnings improves by MSEK 33. Financial net amounted to MSEK -38 (MSEK -48), which was affected by exchange rate differences of MSEK +7 (+3). The operational earnings in Sweden increased by MSEK 67 in the fourth quarter compared to last year. The sale of new vehicles is lower than last year. The sale of used vehicles continues to be strong and are increasing compared to last year. The profitability improves due to improved margins as well as efficiency improvements in both vehicle sales and aftermarket. Operating earnings in Norway increased by MSEK 39 compared to last year through higher sales of both new and used vehicles. Efficiency improvements in after sales have also contributed to the increased profit. In Belgium the business was partly closed during the autumn due to Covid-19. Despite this, the year ends with high sales and the operational earnings improves by MSEK 33. Financial net amounted to MSEK -33 (MSEK -48), which was affected by exchange rate differences of MSEK +7 (+3). Cash flow from operating activities amounted to MSEK 63 (MSEK 357). Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 71 (MSEK 71). Available cash including unused overdraft facility amounted to MSEK 843 as of December 31. Cash flow from operating activities amounted to MSEK 63 (MSEK 357). Investments in intangible and tangible fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 71 (MSEK 71). Available cash including unused overdraft facility amounted to MSEK 843 as of December 31. JANUARY - DECEMBER 2020 Net sales increased 8 percent to MSEK 24,064 (MSEK 22,301). Net sales adjusted for acquired businesses and other changes increased by 6 percent for comparable businesses. Operating profit increased by MSEK 368 to MSEK 729 (MSEK 360). Operating margin increased to 3.0 percent (1.6 percent). From the beginning of March, several cost-saving actions have been taken to minimize the economic effects of Covid-19, which together with previous actions have improved the result. Actions include temporary and permanent staff reductions, and a freeze on recruitments, purchases and travels. Where possible, we have used financial support packages for furloughing. In Belgium, the state took over most of the personnel cost when the business was shut, which decreased cost by MSEK 32. We have also used government support in Sweden and 9