Q3 INTERIM REPORT HEDIN BIL 1
Financial summery JULY - SEPTEMBER 2021 Net sales
in the third quarter decreased by 15 percent to MSEK 5,568 (MSEK 6,516). Sales to private lease and rental cars increased sharply in the quarter, especially as the volume brands KIA and MG are very strong in the private lease segment. As these vehicles are sold with a repurchase obligation, these are not reported in net sales according to IAS15. Including these vehicles, the invoicing has increased by approximately 15 percent compared with the previous year. Net sales Invoicing whereof sold vehicles with repurchase obligation Reported net sales 3rd quarter 2021 7,720,484 -2,152,348 5,568,136 2020 6,693,670 -177,687 6,515,983 Change. % 15% 2021 21,920,771 -15% -2,469,502 19,451,269 1 January - 30 September 2020 18,228,043 -526,234 17,701,809 10% Sales of new vehicles increased by 27 percent, and sales of used vehicles increased by 5 percent. In Sweden, the sales decreased by 18 percent but adjusted for an increase in vehicles with repurchase obligation, the invoicing increased by 31 percent. Sale of used vehicles increased by 4 percent. Sales in Norway decreased by 3 percent, after a strong third quarter last year. In Belgium, sales increased by 6 percent, both in new and used vehicles. Operational earnings decreased by MSEK 20 to MSEK 238 (MSEK 258). The margin of operational earnings increased to 4.3 percent (4.0 percent). The gross margin from sales of used cars continues to improve in all markets. The gross margin from sales of new vehicles is also developing positively. The margin of operational earnings in vehicle sales amounted to 3.0 percent (2.7 percent). The improvement is mainly driven by increased income from leased vehicles and increased profitability on used vehicles. Operational expenses in relation to net sales have been kept at a stable level. The margin of operational earnings in After-market amounted to 6.2 percent (8.8 percent). Net sales increased by 22 percent. The operational expenses have increased slightly again after the cost reduction that took place last year in connection with the pandemic. Net sales Vehicle sales After-market Segment reconciliation Total Operational earnings Vehicle sales After-market Segment reconciliation Total Margin Vehicle sales After-market Total 3rd quarter 2021 4,956,082 1,244,559 -632,505 5,568,136 3rd quarter 2021 148,711 76,769 12,880 238,360 3rd quarter 2021 3.0% 6.2% 4.3% 2020 5,846,066 1,022,316 -352,399 6,515,983 1 January - 30 September 2021 17,653,760 3,463,600 -1,666,091 19,451,269 Year 2020 15,609,264 3,143,325 -1,050,780 17,701,809 2020 156,338 90,049 12,025 258,412 1 January - 30 September 2021 487,606 228,046 35,446 751,098 2020 21,216,497 4,397,126 -1,549,709 24,063,914 Year 2020 260,266 224,203 30,989 515,458 2020 2.7% 8.8% 4.0% 1 January - 30 September 2021 2.8% 6.6% 3.9% 2020 438,068 326,477 40,192 804,737 Year 2020 1.7% 7.1% 2.9% 2020 2.1% 7.4% 3.3% Change. % 20% 8 INTERIM REPORT Q3 HEDIN BIL – 1 JULY – 30 SEPTEMBER