Q4 INTERIM REPORT HEDIN MOBILITY GROUP 1
Words from our CEO We became Hedin Mobility Group
• • • • Order backlog at all time high Restructuring of the Group New partner Another year has passed and when we look back, we can see that it has been one of the most eventful years in the Group’s history. The year started when we became the Swedish importer of Ford. During the spring, we launched a new brand on the Swedish market, the Chinese electric car brand MG, both as an importer and retailer. In October, we started the next chapter in the Group’s history, through a directed share issue of SEK 3.57 billion, where Erik Selin enters as the new owner of 25% of the shares in the company. Erik Selin knows the company well through his involvement with the company’s Board of Directors in recent years. In connection with the new share issue, we also carried out a restructuring of the companies in the Hedin Group and have now consolidated all automotive related operations within the Hedin Mobility Group. The automotive industry in Europe is changing and through the new structure we have laid a solid foundation for continuing our development both in Sweden and Europe and being part of this change. To better reflect the group’s entire operations and mark the transition to a new phase in the Group’s history, we have also changed our name to Hedin Mobility Group. Retail Demand continued to be strong during the fourth quarter, which, however, has been characterized by delivery problems at most car brands. The supply problems are due to the global shortage of semiconductors, and we expect it to continue in 2022. This has contributed to our order backlog increasing further to a record level of 21,900 vehicles. The market in Sweden has decreased during the autumn, but as the spring was strong compared to 2020, the year ended at a total of +3.1% for passenger cars, while our sales increased by 10%. There has been a shift to rechargeable cars which amounts to 45% of the market compared to 32% the previous year. There is also a shift towards finance car purchases through private leasing, where over half of all cars sold to private customers during 2021 were private leased. The market in Norway ended +25% for the full year, while our sales increased 17%. Rechargeable cars are increasing further, amounting to 85% of sales, of which 65% are full electric cars. In Belgium, the market decreased by 11%, while we increased by 15%. Rechargeable cars are increasing and correspond to about 25% of registered vehicles, mostly plug-in hybrids. The operations in Switzerland was transferred to the group in the restructuring in October. The total market has increased by 0.7% compared to 2020. Also in Switzerland, there is a shift towards rechargeable vehicles corresponding to 22% of all registered vehicles. Distribution Distribution consists of imports and wholesale operations of vehicles, tires and spare parts. Most of the business was created by the restructuring that took place in October. We have been an importer of Ford since January 4, when we took over operations from Ford Inc. Our ambition is to increase the market share of Ford and to grow into one of the major brands in the Swedish market. The development this year has been very positive, and the fourth quarter made Ford its best quarter in ten years in terms of market share, for both passenger cars and vans. A total of 15,986 vehicles were registered, which is an increase of 43% compared to 2020. In the fourth quarter, 5,141 vehicles were registered, which is an increase of 86% compared to the same period last year. MG was launched in April, where we operate both as importer and retailer. During the second half of the year, retailers were gradually added to the network, and MG is now present in 43 locations, of which 30 are within Hedin Mobility Group. The start was very successful and received a lot of interest from the market. A total of 4,508 vehicles were registered from the start in June to the end of the year. We are now entering the new year with a good order backlog for the new models for 2022. KW Automotive, which imports Dodge and RAM into Europe and homologates the vehicles at its facility in Bremerhaven, has had a very positive year. However, sales have suffered from a shortage of cars at the end of the year due to the lack of semiconductors in the factories. Here we also note a record order backlog as we enter the new year. Other We have always worked long-term and we continue to develop and improve the business. We have a substantial order backlog going into 2022, and we do what we can to find solutions so that customers don’t have to wait for their vehicles. There is a lot of work behind the great result that we are delivering, and I would like to thank everyone who contributed to this. We continue to focus an retain both earnings and liquidity in order to maintain our long-term focus. Anders Hedin 9 YEAR-END REPORT 2021 | HEDIN MOBILITY GROUP AB (PUBL) | JANUARY–DECEMBER