Interim Report - T2 2021 - Lantmannen
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Interim Report – T2 2021
The Period in Short –
Important Events
2 Interim Report - T2 2021
The Period in Short
• The coronavirus pandemic is hopefully
starting to come to an end
• Lantmännen’s result is slightly higher than
the previous year – and several businesses
are once again showing healthy growth
• The harvest is lower than the five-year
average, and the quality is generally lower
than normal
• Sharply increasing raw material prices and
very strained supply chains – shortage of
components and inputs
• Despite this, we are well positioned in
virtually all businesses
Agriculture: Difficult and
Protracted Harvest
• A warm and dry summer, followed by
heavy rainfall
• Increasing raw material prices and
lower grain volumes impact the result
• The Finnish agricultural operations are
developing well – but this year’s
harvest is the worst in a long time
• Lantmännen Maskin has increased its
result and demand in the market is
strong – however, big delivery
problems from main suppliers
4 Interim Report - T2 2021
Energy: Higher Raw
Material Prices and Rising
Ethanol Price Ethanol price (€ / 1 000 litres)
850
• Higher grain prices impact 750
Lantmännen Biorefineries’ result
650
strongly
550
• The average ethanol price up until
August has been lower than the two 450
previous years
350
• Production is running well in all Jan, 2017 Jan, 2018 Jan, 2019 Jan, 2020 Jan, 2021
businesses Ethanol Yearly average
• Strategic investments in heat-
treated oats and gluten continue
5 Interim Report - T2 2021
Food: Markets Are
Starting to Open Again
• Continued impact from the
pandemic, mainly in foodservice
• As restrictions are being lifted,
demand is once again rising
• The market remains difficult to
assess
• Sharp price increases are necessary
due to rising grain prices
6 Interim Report - T2 2021
Swecon: High Pressure but
Lack of Machinery
• Volvo has been hit hard by
component shortages, which leads
to reduced supply of machines
• Underlying demand remains strong
• The strategic improvement work
continues – for example through
investments in brand, safety, and
digitalization
7 Interim Report - T2 2021
Other Important Events
• ThermoSeed has won the ”European Award
for Cooperative Innovations”
• It has been decided to build a new cold storage
in Örebro, and a new bakery line in
Lappeenranta, Finland
• Investments in Unibake in Poland, the UK,
Russia and Australia continue as planned
• Agroetanol has signed a long-term deal with
Eon for delivery of process steam
• Lantmännen has signed a deal to acquire the
Finnish food group Myllyn Paras
8 Interim Report - T2 2021
The Development in
Our Businesses
9 Interim Report - T2 2021
Lantmännen’s result, after net financial items and
MSEK adjusted for items affecting comparability
Slightly higher result 2 000 8%
than last year 1 500
1 058 1 090
1 320 1 358 6%
1 000 4%
500 2%
0 0%
Jan-Aug 2018 Jan-Aug 2019 Jan-Aug 2020 Jan-Aug 2021
Result Operating margin
Jan-Aug Jan-Aug
MSEK
2020 2021
Operating profit, adjusted for items
Reported operating profit 1 443 1 457 MSEK affecting comparability
Items affecting comparability - 9 800
590
Net financial items -123 -90 600 504
Result after net financial items, adjusted for 380
1 320 1 358 400 339
items affecting comparability 292
246 262 234
191
200 149
0
Agriculture Sector Energy Sector Food Sector Swecon Business Real Estate
Area Business Area
(excl. capital gains)
Jan-Aug 2020 Jan-Aug 2021
10 Interim Report - T2 2021Several business once again MSEK
Lantmännen’s net sales
showing healthy growth 50 000
46 100
45 000
40 000
Net sales increased by 0,3 percent – 35 000
of which 2,1 percent organically and 30 000
-1,8 currency effects 2014 2015 2016 2017 2018 2019 2020 2021
(R12)
Organic growth for the second four- MSEK Organic growth per business
month period was 6,9 percent 16 000
+3,3%
14 000
+4,0%
12 000
All businesses except Swecon show 10 000
organically growing net sales 8 000
6 000
-2,1%
+2,9%
4 000
2 000
Focus on price compensation for cost 0
increases Agriculture Sector Energy Sector Food Sector Swecon Business
Area
Jan-Aug 2020 Jan-Aug 2021
11 Interim Report - T2 2021Stable Margin and Return Development
Operating margin
3 000 4,8% 6%
2 000 4%
1 000 2%
0 0%
2015 2016 2017 2018 2019 2020 2021
(R12)
EBIT adjusted for items affecting comparability
Operating margin
Return on operating capital Return on equity
8,2%
30 000 9% 20 000 9,9% 12%
15 000 9%
20 000 6%
10 000 6%
10 000 3%
5 000 3%
0 0% 0 0%
2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021
(R12) (R12)
Operating capital Return on operating capital Equity Return on equity
12 Interim Report - T2 2021Sales Growth and Higher Raw Material
Prices Weakened the Cash Flow
Per tertial Cash flow from operating activities after net investments * R12
2 000 4 000
1 500 3 000
• Increased working capital led to a
1 000 2 000
1,3 billion SEK weaker cash flow
500 1 000 than the previous year
0 0 • Growing business and higher raw
material prices
-500 -1 000
• Increased rate of investments
-1 000 -2 000
following lower investments during
-1 500 -3 000 the pandemic – investment cash
T1 2019 T2 T3 T1 2020 T2 T3 T1 2021 T2 flow -0,3 billion SEK lower
Net investments
Change in working capital
Cash adjusted result after taxes paid
Cash flow from operating activities after net investments
13 Interim Report - T2 2021 *) Cash flow before investment activities, excluding acquisitions, divestments, and change in financial investmentsStable Development of Financial Key Figures
Equity ratio
IFRS16
50%
43,7%
45%
(incl. IFRS 16)
40%
35%
30%
Net debt * Net debt / EBITDA *
IFRS16 IFRS16
14 000 5
12 000
4
10 000
8 099 3
8 000
(incl. IFRS 16)
6 000 2 1,7
(incl. IFRS 16)
4 000 1
* Bank definition
14 Interim Report - T2 2021Lantmännen Lantbruk Sweden
MSEK Lantmännen Lantbruk Sweden
200 400
156
150 300
88 92 86
100 73 200
• A warm and dry summer followed by 50
42
100
17
repeated and heavy rainfall in several 0 0
areas has led to a difficult harvest, lower -6
-50 -100
grain volumes and lower quality than the T1 T2 T3 T1 T2 T3 T1 T2
2019 2020 2021
average for the last five years
EBIT EBIT (Rolling 12 months)
• Continued good demand for feed: poultry
production has recovered following the
avian influenza
15 Interim Report - T2 2021Lantmännen Maskin Sweden
MSEK Lantmännen Maskin Sweden
30 27 30
23
20 20
11
10 10
• Positive development and higher result 0 0
than the previous year -10 -7 -8
-10
-11 -10
-14
• Valtra and Fendt have increased their -20
T1 T2 T3 T1 T2 T3 T1 T2
-20
market shares 2019 2020 2021
EBIT EBIT (Rolling 12 months)
• Supply of machines has decreased during
the pandemic, but underlying demand is
good
16 Interim Report - T2 2021Agriculture Sector
MSEK Agriculture Sector
250 235 500
200 185 400
150 132 300
106 104 100 107
100 200
50 100
0 0
-50 -28 -100
T1 T2 T3 T1 T2 T3 T1 T2
2019 2020 2021
EBIT EBIT (Rolling 12 months)
17 Interim Report - T2 2021Energy Sector
MSEK Energy Sector
350 700
300 600
• Higher raw material prices has had a 250
246
500
significant impact on Lantmännen 200
188
150 154
400
134
Biorefineries’ result 150 115
92
300
100 200
52
• Production is running well in all businesses 50 100
0 0
• Aspen has increased its sales significantly T1
2019
T2 T3 T1
2020
T2 T3 T1
2021
T2
• Agroetanol has signed a long-term deal EBIT EBIT (Rolling 12 months)
with Eon for continued delivery of process
steam
• First ground broken for the investment in
gluten production in Norrköping
18 Interim Report - T2 2021Food Sector
MSEK Food Sector
600 1 200
• Demand has begun to increase in several
500 443 1 000
countries, as restrictions are being lifted 413
400 336 800
314
282
• Rising raw material prices will mean price 300 239 600
190 177
increases towards customers 200 400
100 200
• A new cold storage to be built in Örebro, to 0 0
make the supply chain more efficient and T1
2019
T2 T3 T1
2020
T2 T3 T1
2021
T2
sustainable
EBIT EBIT (Rolling 12 months)
• A new production line for local and
sustainable products to be built in
Lappeenranta, Finland
• Very successful launch of rye snacks from
Finn Crisp in Sweden, Finland, and Germany
19 Interim Report - T2 2021Swecon Business Area
MSEK Swecon Business Area
300 600
237 243
• Continued high activity in the market and 200
139 138 139
153
400
strong demand for machinery 123
100 81 200
• Supply of new machines has decreased
during the pandemic, due to component 0 0
T1 T2 T3 T1 T2 T3 T1 T2
shortage 2019 2020 2021
• Ongoing initiatives to strengthen the brand EBIT EBIT (Rolling 12 months)
towards both customers and employees
• Ongoing projects in digitalization, for
example in customer service and support
20 Interim Report - T2 2021Real Estate Business Area
MSEK Real Estate Business Area
150 300
• Higher operating result and higher profit 100
1
200
18 8 4 5
shares from partly-owned companies
50 101 90 100
77 74 75 74 74
• A deal has been signed to sell buildings 71
rights in Örebro 0 0
T1 T2 T3 T1 T2 T3 T1 T2
• Construction of Lantmännen’s new office, 2019 2020 2021
EBIT Capital gains EBIT (Rolling 12 months)
housing and a retirement home in Malmö
continues as planned
• Parly-owned Lanthem has broken first
ground in a project in Tygelsjö, Malmö
21 Interim Report - T2 2021Tillbaka till tillväxt
Coronapandemin börjar förhoppningsvis närma sig sitt slut
– våra övergripande prioriteringar kvarstår: att skydda våra
medarbetare, skydda våra affärer och ta vårt samhällsansvar.
Våra affärer är väl förberedda: ökad tillväxt märks redan
inom vissa områden, och övriga verksamheter står redo att
växla upp.
Vi är väl positionerade inom alla affärsområden – våra
medarbetare har hanterat de senaste årens utmaningar på
ett föredömligt sätt.
Vi har solida planer för framtiden och målsättningen är att
fortsätta utveckla ett företag och ett svenskt lantbruk i
världsklass.
22 Interim Report - T2 2021Tack! Tillsammans tar vi ansvar från jord till bord lantmannen.se
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