View Annual Report

Lindab Annual Report 2015 Lindab’s innovative solutions create ultimate comfort in the buildings of the future During the year, several important steps were taken towards changing the work methods and offering that support the vision for Lindab’s development www.lindab.com The Lindab website provides extensive information about the Group. You will also find contact details and addresses there for all our companies worldwide. Contents Interview with the CEO 2 Lindab 2015 4 Offering 8 Availability 10 Value chain 12 Market 14 An energy-efficient future 18 Strategy 20 Sustainability 41 The Lindab share 42 Risk management 44 Five-year overview 45 Corporate Governance Report 47 Financial statements 58–114 with Directors’ Report, notes and Auditors’ Report Glossar y 115 Information to shareholders 116 Lindab delivered 23 modular AHUs for the indoor climate solution in connection with the extensive renovation and refurbishment of parts of the large university campus Campus de Jus- This document is a translation of the original, published in Swedish. In cases of any discrepancies sieu in Paris. All the units are adapted to spe- between the Swedish and English versions, or in any other context, the Swedish original cific needs with filter sections, supply and ex- shall have precedence. haust fans, heating and cooling units, heat re- covery and dehumidifiers. The cover shows the large renovated atrium in one of the main buildings on the campus. Lindab reports on its sustainability work as an integral part of the Annual Report and on the website. Lindab has applied the Global Reporting Initiative (GRI) guidelines for reporting of sustainability information since 2009, this year for the first time according to GRI G4 Core. A GRI index with references to where GRI information can be found can be downloaded at www.lindab.com. lindab | introduction Progress Lindab continued the roll-out of its new strategy in 2015. Ambitions are high, and in the different strategic focus areas throughout the company targeted efforts are being made to ensure that Lindab can strengthen its market positions and achieve its financial targets. Developing innovative solutions that simplify construction and continuing to put future issues such as ventilation and indoor climate high on the agenda are key to this work. Read more about the activities in Lindab’s strategy on pages 24–40 1 lindab | interview with the CEO A talk with Anders Berg, President and CEO “The transformation of Lindab is going according to plan” Lindab’s vision is to create ultimate comfort in the living and working environments of the future. 2 lindab | interview with the CEO “Today we are an organisation that embraces an integrated approach, and we view every new project from an increasingly holistic perspective.” A lot has happened at Lindab in 2015. Is there anything in particular you would like to highlight? Apart from the fact that the organisation is increasingly working as One Lindab, I would like to highlight our acquisitions. The acquisitions of MP3, IMP Klima, Nather and Froid Partn’Air are a result of our analysis of what we need to be able to offer the customers leading and complete ventilation solutions. Integrating several new companies with over 400 employees is of course a challenge, but it has been a great success. We have begun to roll out our fire protection and air handling offerings in almost all our markets, and in 2016 we have to further expand our ex- pertise in order to sell even more complete solutions. 2015 was also a year of challenges; I’m mainly thinking about the difficult market situation in Russia. In terms of strategy, what are the big differences compared to how Lindab worked previously and what is the time frame for delivering on the strategy? Anders Berg, President and CEO The work on the strategy we launched at the end of 2014 is in full swing, and we’re working in a completely different way than we used to. Now we are concentrating all our efforts on identifying the solutions that are best for the customers, not what we produce and need to sell, and You have now been with Lindab for three years. ensuring that everyone at Lindab is involved and commit- How do you view the company’s transformation ted to developing these solutions. We’re quite simply an during this period? organisation that embraces a more integrated approach It has been three eventful and important years. By focus- and views every new project from an increasingly holistic ing on what Lindab has always done best, making things perspective. And despite challenging markets we have to simpler for the customers and offering energy-efficient deliver on our strategy. To do this, however, requires hard construction and ventilation solutions, and with a more ef- work and that we really translate the strategy into action ficient organisation and new work methods we have begun which is always a great challenge, but an enjoyable one. a comprehensive development and transformation of the company. This work is going according to plan. Lindab’s segments went in different directions in 2015. Why is that and how do you see the future? What activities will you first and foremost have Much of what I’ve mentioned cannot yet be seen on the to pursue further? How important is innovation, bottom line. In Products & Solutions we’ve incurred costs for example? relating to the integration of acquisitions and increased mar- We are operating on a market with ever-increasing compe- ket investments, which have affected the margin. Sales, on tition. All parts of the company therefore have to undergo the other hand, grew by double digits for the second con- continuous development. At the same time, innovation is secutive year, and with an even better product mix we’ll also crucial to our ability to maintain and strengthen our mar- be able to increase profitability in future. In Building Sys- ket positions in the long term. There are profound entre- tems we have increased exposure in Western Europe and preneurial and innovative capabilities within the Group, but Africa, among other places, which has reduced the nega- we have to be even better at translating these capabilities tive effects of the continued weak development in Russia. into new and innovative customer offerings. That’s why this Towards the end of the year, we saw some improvement area is a top priority for us. in the order intake, but it’s much too early to talk about a changed trend. Despite the challenges we delivered our I understand that the changes are necessary best full-year EBIT including one-off items in many years. given the challenges that the construction industry is facing. Is Lindab ready for them? One final question: what are your expectations We are starting to be. Our focus on developing and offering for 2016? complete solutions within our already strong areas of ventila- In a rapidly changing world, we have only one focus: to con- tion and indoor climate is part of these efforts. Among other tinue to deliver on our strategy and do everything we can to things, we also have a strong focus on nearly zero-energy ensure that our customers can develop successfully. Today buildings, solutions which will have a major impact on the we have more than 5,000 employees in 32 countries with property industry’s contribution to the transition towards a clear vision – to make things simpler for our customers a fossil-free society. and create ultimate comfort in the buildings of the future. 3 lindab | lindab 2015 Lindab is a leading supplier of customised solutions for simplified construction and improved indoor climate. Through close dialogue with its customers, Lindab develops energy-efficient solutions which combined with service, support and high availability offer increased customer value and lower environmental impact. The Group is established in 32 countries with just over 5,000 employees. Renovation and new non-residential construction account for around 80 percent of sales, while residential construction accounts for the remaining share of sales. Lindab 2015 • Sales increased by 8.4 percent to SEK 7,589 m • Strong increase in sales in Products & Solutions • Increased market diversification, but lower sales and profitability in Building Systems At Lindab, our focus has always been on effective distribution and solutions which • Acquisition of the companies MP3*, IMP Klima, Nather simplify all aspects of the construction process. This is reflected in, for example, and Froid Partn’Air with a focus on ventilation and the delivery of comprehensive ventilation indoor climate systems for large construction projects in Malmö, Istanbul and Bergen as well as the • Divestment of Lindab Inc, USA award-winning Quadrio project in Prague. • Establishment of distribution centre begun in the Nordic region • The Board of Directors proposes dividend of SEK 1.25 (1.10) *An acquisition agreement was concluded in December 2014, and the acquisition was completed in 2015. Net sales Operating margin (EBIT) Sales, operating margin 2011–2015 SEK m % 8,000 10.0 6,000 7.5 SEK billion 4,000 5.0 7.6 6.1% 2,000 2.5 Sales increased by 8.4% to SEK 7,589 m (7,003). The operating margin, excluding one-off items, 0 0.0 2011 2012 2013 2014 2015 Adjusted for currency and structure, the increase fell to 6.1% (7.1). Sales Operating margin (EBIT) was 2%. Operating profit (EBIT) Cash flow Earnings per share SEK 463 m SEK 460 m SEK 3.9 9 Excluding one-off items of SEK 6 m (–30), Cash flow from operating activities increased to Earnings per share increased by 7.5% to the operating profit fell to SEK 463 m (497).

Load more