Interim Report T1 2021 - Lantmännen

Interim Report – T1 2021

The first four months in short –important events

Interim Report - T1 20212

The first fourmonths in short

• Lantmännen shows a stable development, despite continued impact from the coronavirus pandemic

• The result is in line with the previous year

• Thorough work with cost reductions, production adaptations, and new business offerings

• Increased rate of strategic investments – both in Sweden and abroad

Good development in the Agriculture Sector

• Virtually all of the sector’s businesses are developing positively

• Varying conditions for this year’s harvest

• The Future Farm of Bjertorp, where innovative solutions for the farming of the future are being tested, has been inaugurated


350

450

550

650

750

850

Jan, 2017 Jan, 2018 Jan, 2019 Jan, 2020 Jan, 2021

Ethanol price (€ / 1 000 litres)

Ethanol Yearly average


Lower result in theEnergy Sector

• Higher grain prices impact the result in Lantmännen Biorefineries

• The ethanol price remains very volatile

• A strategic investment in gluten production is being made in Norrköping

• Lantmännen Aspen is expanding according to plan in the US

The pandemic is impacting the Food Sector

• Continued strong pressure on the foodservice business in several markets

• Production adaptations and development of new business offerings

• Investments being made in several of Unibake’s production facilities

• Rising interest in the cultivation concept ’Climate and Nature’

• Expanded cooperation with Svenskmärkning



Stable development in Business Area Swecon

• Decreasing total market and lower supply of machines during the pandemic

• Continued strong aftermarket: increased demand for used machines, service, and spare parts

• Fierce competition for technicians in the labor market

Other important events

• Jenny Bengtsson was elected as board member at Lantmännen’s Annual General Meeting

• Lantmännen has launched a green bond of 1 Billion SEK on the Nasdaq stock market

• Växa Sverige has become a co-owner of Tillväxtbolaget

• Lantmännen has been named ’Talent Company of the Year’ for the second consecutive year

• Group President and CEO Per Olof Nyman has announced his intention to retire during 2022


The development in our businesses



MSEK

293335

447 480

0%

2%

4%

6%

0

200

400

600

T1 2018 T1 2019 T1 2020 T1 2021

Result Operating margin

104

134

190

123

80

10792

177

153

100

0

50

100

150

200

AgricultureSector

Energy Sector Food Sector Swecon BusinessArea

Real EstateBusiness Area

T1 2020 T1 2021

Lantmännen’s result, after net financial items and adjusted for items affecting comparability

MSEK Operating profit, adjusted for items affecting comparability

Stable developmentfor Lantmännen

MSEK T1 2020 T1 2021

Reported result 500 543

Items affecting comparability - 9

Net financial items -53 -54

Result after net financial items, adjusted for items affecting comparability

447 480

Taxes paid -71 -73

Net result 376 416


46 000 45 200

30 000

35 000

40 000

45 000

50 000

2014 2015 2016 2017 2018 2019 2020 2021(R12)

Net sales decreased by 5,1 percent –of which 2,9 percent currency effects

and 2,1 organic

Continued large impact on foodservice in the Food Sector

The pandemic is stillimpacting sales

-2 000

0

2 000

4 000

6 000

8 000

10 000

AgricultureSector

Energy Sector Food Sector SweconBusiness Area

Other, incl.Eliminations

T1 2020 T1 2021

Net sales per business

MSEK

MSEK

Lantmännen’s net sales

-5,1%

+0,2%

-8,0%

-0,5%

* XXX

+0,5%

Stable margin and return development


5,0%

0%

2%

4%

6%

0

1 000

2 000

3 000

2015 2016 2017 2018 2019 2020 2021(R12)

Operating margin

EBIT adjusted for items affecting comparability

Operating margin

8,4%

0%

3%

6%

9%

0

10 000

20 000

30 000

2015 2016 2017 2018 2019 2020 2021(R12)

Return on operating capital

Operating capital Return on operating capital

10,3%

0%

3%

6%

9%

12%

0

5 000

10 000

15 000

20 000

2015 2016 2017 2018 2019 2020 2021(R12)

Return on equity

Equity Return on equity

• Cash flow from operating activites remains strong, the positive effects of lower working capital slightly lower than the previous year

• The cash flow in 2018 was negatively impacted by quickly rising working capital due to the drought


4 236

-1 000

0

1 000

2 000

3 000

4 000

5 000

-500

0

500

1 000

1 500

2 000

2 500

T12018

T2 T3 T12019

T2 T3 T12020

T2 T3 T12021

Cash flow per four-month period Cash flow, rolling 12 months

IFRS16Per tertial R12

Cash flow from operating activities

Continued strong cash flow for the first four months

IFRS16

IFRS16

30%

35%

40%

45%

50%

Equity ratio

Stable development of our financial key figures


* Bank definition

IFRS16

4 000

6 000

8 000

10 000

12 000

14 000

Net debt *

44,5%(incl. IFRS 16)

1,6(incl. IFRS 16)

7 815(incl. IFRS 16)

1

2

3

4

5

Nettolåneskuld / EBITDA *

• Virtually all of the sector’s businesses deliver results in line with, or higher than, the previous year

• The Finnish operations continue to develop positively – good conditions for the coming harvest

• Lower result from the international interest holdings

Agriculture Sector


MSEK

-28

132106 104

235

100 107

-100

0

100

200

300

400

500

-50

0

50

100

150

200

250

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Agriculture Sector

EBIT EBIT (rolling 12 months)

• Varying conditions for this year’s harvest –heavy rainfall and winter crop losses in some places

• Continued strong demand for feed, and stable settlement prices for all production categories

• A new ThermoSeed facility in Skänninge has begun production

• The Future Farm of Bjertorp has been inaugurated

Lantmännen Lantbruk Sweden


MSEK

-6

2

7388

156

17

92

-100

0

100

200

300

400

-50

0

50

100

150

200

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Lantmännen Lantbruk Sweden


• Strong order intake in the first four months

• Decreasing total market for tractors, due to delivery problems from several manufacturers

• Increased demand for used machines, service, and spare parts

• The positive underlying result development is hampered by the current lack of machine supply

• Lantmännen has handed over distribution responsibilities for Massey Ferguson to AGCO

Lantmännen Maskin Swede


MSEK

-11

27

-7-10

11

-8

-14 -20

-10

0

10

20

30

-20

-10

0

10

20

30

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Lantmännen Maskin Sweden


• Higher grain prices have impacted the result of Lantmännen Biorefineries

• Production running generally well in all businesses

• Lower than normal demand for ethanol during the first four months

• Technical spirit from Reppe has been approved for sale as hand sanitizer

• Strategic investment in gluten production in Norrköping

• Aspen shows a continued strong growth and expands in the US

Energy Sector


MSEK

52

115

188

134

246

150

92

0

100

200

300

400

500

600

700

0

50

100

150

200

250

300

350

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Energy Sector


• Lower foodservice sales in mainly Lantmännen Unibake

• Thorough work with cost reductions and production adaptations

• Investments in production facilities, for example in Denmark, the UK, and Poland

• Last year’s result in Cerealia was affected by hoarding of basic products

• Viking Malt’s result is slightly lower than the previous year

Food Sector


MSEK

239

443

336

190

314282

177

0

200

400

600

800

1 000

1 200

0

100

200

300

400

500

600

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Food Sector


• The higher result is driven by a growing aftermarket (used machines, spare parts and service), as well as lower costs

• Lack of components has led to a reduced supply of machines

• High activity in the Swedish market

• The coronavirus pandemic has led to greater uncertainty in Germany

Swecon Business Area


MSEK

139 138

237

123139

243

153

0

200

400

600

0

100

200

300

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Swecon Business Area


• Improved underlying result

• Partly-owned Lanthem is developing positively

• Lantmännen Agrovärme’s result is higher than the previous year

• A property in Ystad has been divested to the municipality of Ystad, which intends to develop housing there

• The overview of strategically important properties continues

• The energy mapping of Lantmännen’s properties will be updated

Real Estate Business Area


MSEK

71 77 74 75 74 74101

18 8 4 5

0

100

200

300

0

50

100

150

T1 2019 T2 T3 T1 2020 T2 T3 T1 2021

Real Estate Business Area

EBIT Capital gains EBIT (rolling 12 months)


We are ready when the tide turns

We still aren’t through the pandemic, and our main priorities remain: protecting our people, protecting our businesses – and taking our social responsibility.

As more people get vaccinated, we move closer to a more normal situation, and when the global economy recovers, we need to take advantage of the opportunities that exist.

We’re investing for future profitable growth – both in Sweden and abroad – to develop Swedish farming and the entire grain value chain.

Together we take responsibility from field to forklantmannen.com

Thank You!

Documents

Interim Report T1 2021 - Lantmännen