2020
We are paving the way for
connecting the world by excellent
fiber optic technology
ANNUAL AND SUSTAINAB ILIT Y REPOR T
Content
THE BUSINESS
The year in brief | 4 |
Comments by the CEO | 6 |
Offering and business model | 8 |
The Group's offering | 10 |
SUSTAINABILITY REPORT
Six prioritised sustainability areas | 28 |
Governance for increased sustainability | 28 |
How we contribute to Agenda 2030 | 29 |
Strong business ethics | 30 |
Sustainable supply chain | 31 |
Low climate impact | 32 |
The market | 12 |
Acquisitions | 19 |
The Hexatronic share and shareholders | 24 |
Good health, safety and working | |
environment | 34 |
Diversity and gender equality | 35 |
Social involvement | 35 |
Goals and results indicators | 36 |
Auditor's statement | 37 |
BOARD OF DIRECTORS' REPORT
Financial development | 38 | Board of directors | 48 | |
Risks and risk management | 44 | Executive management | 50 | |
CORPORATE GOVERNANCE REPORT 52
FINANCIAL INFORMATION
The Group | 58 | IFRS and key figures | 102 | |
The Parent Company | 63 | Assurance of the board of directors | 103 | |
Notes | 68 | Auditor's report | 104 | |
INFORMATION TO SHAREHOLDERS
Annual General Meeting 2021 | 108 | Financial calendar | 109 |
6.
COMMENTS FROM THE CEO
We look back on 2020 as a year of stronger profitability and growth during the ongoing COVID-19 pandemic. It was also a year of several strategic acquisitions.
15.
THE MARKET
Various reports and national forecasts indicate continued strong demand for FTTH on Hexatronic's strategic growth markets up to 2025-2030.
24. 26.
SHARE AND SHAREHOLDERS
During the financial year, the share price has fluctuated between a minimum of SEK
33.60 on 23 March 2020 and a maximum of SEK 76.40 on 30 December 2020.
SUSTAINABILITY REPORT
A roadmap was drafted during 2020 for the Group's sustainability work up to 2030. It includes objectives for the short and long term, and main activities to focus on for each sustainability area.
38.
FINANCIAL DEVELOPMENT
Net sales during the financial year amounted to MSEK 2,080.8 (1,842.3). Sales increased by 13% for the Group compared to the previous financial year.
108.
ANNUAL GENERAL MEETING
In light of the extraordinary situation that prevails, the Annual General Meeting 2021 will be conducted by mandatory advance voting (postal voting) on the basis of temporary statutory rules.
annual report 2020 | he x atronic | 3 |
THE YEAR IN BRIEF
Hexatronic Companies
Strategic acquisitions and improved profitability
We have had strong profitability and revenue growth this year, and we believe that our efforts and focus have created a good basis for continued growth.
Financial summary | 2020 | 2019 | 2018 | 2017 | 2016 |
Net sales | 2,080.8 | 1,842.3 | 1,597.8 | 1,299.4 | 1,032.3 |
Earnings after depreciation of tangible assets (EBITA) | 204.8 | 135.9 | 114.9 | 133.4 | 97.0 |
EBITA margin | 9.8% | 7.4% | 7.2% | 10.3% | 9.4% |
Operating result (EBIT) | 177.3 | 106.4 | 92.5 | 122.3 | 88.8 |
Net earnings | 126.5 | 67.1 | 59.3 | 90.4 | 54.1 |
Total assets | 1,953.3 | 1,497.9 | 1,303.1 | 777.1 | 657.3 |
Cash flow from operating activities | 249.8 | 173.9 | 15.6 | 133.4 | 33.1 |
Earnings per share after dilution, SEK | 3.37 | 1.80 | 1.62 | 2.38 | 1.50 |
4 | annual report 2020 | he x atronic |
THE YEAR IN BRIEF
The year in brief
- Hexatronic acquires the UK-bases fiber optic company Tech Optics Ltd.
- Hexatronic acquries The Light Brigade Inc., an US-based training company.
- Hexatronic acquires the fiber optic companies Baltronic Group OÜ, based in Estonia and the Canadian company Toronics Inc.
- Hexatronic acquires 90 percent of the shares in Qubix S.pA., an Italian supplier of structured cabling.
- Hexatronic wins new submarine cable orders totalling approximately MSEK 155.
- Hexatronic signs a strategic supply agreement with KCOM in the UK worth up to MSEK 40.
- Hexatronic enters a global settlement agreement with Emtelle UK Ltd., ending their patent litigation in the UK.
- Lennart Sparud announces that he is leaving his position as CFO in Hexatronic Group, and Magnus Angermund is appointed as Head of Northern Europe.
Events since the end of the period
- Hexatronic signs a 3-year exclusive agreement with Centric Fiber in USA, to a value of MUSD 10.
- Hexatronic acquires 75 percent of the shares in the German engineering company TK-KONTOR-FREITAG GmbH.
- Hexatronic wins new submarine cable orders totalling approximately MSEK 60.
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
OPERATING MARGIN
9,8%
NET SALES MSEK
2 081
NUMBER OF EMPLOYEES
789
Net sales, MSEK
2,081 | ||||
1,842 | ||||
1,598 | ||||
1,299 | ||||
1,032 | ||||
2016 | 2017 | 2018 | 2019 | 2020 |
- Hexatronic signs a strategic supply agreement with Vocus in Australia.
EBITA (MSEK and percent)
• The board adjusts the profitability target | 225 | EBITA | EBITA-margin | 14% | |||
200 | 205 | ||||||
to 10 percent EBITA (earnings before | 12% | ||||||
175 | 10,3% | ||||||
amortisation of intangible assets) on | 9,8% | 10% | |||||
150 | |||||||
rolling 12 months basis (from 9 percent). | 9,4% | 133 | 136 | ||||
125 | 8% | ||||||
115 | |||||||
• Pernilla Lindén is appointed CFO and member | 97 | ||||||
100 | 7,2% | 7,4% | 6% | ||||
of the Group Management Team at Hexatronic | |||||||
75 | 4% | ||||||
Group and will take office August 9, 2021. | 50 | ||||||
The current CFO, Lennart Sparud, left his | 25 | 2% | |||||
position March 31, 2021. In the meanwhile, | 0 | 2016 | 2017 | 2018 | 2019 | 2020 | 0% |
Svante Godén stepped in as acting CFO. | |||||||
annual report 2020 | he x atronic | 5 |
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Hexatronic Group AB published this content on 14 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2021 13:11:07 UTC.