Earnings Release • Feb 15, 2019
Earnings Release
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| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales | 5,521 | 4,927 | 19,305 | 17,293 |
| Operating profit/loss (EBIT) | 436 | 389 | 1,207 | 1,072 |
| Operating margin (EBIT), % | 7.9 | 7.9 | 6.3 | 6.2 |
| EBITA | 438 | 390 | 1,211 | 1,078 |
| EBITA margin, % | 7.9 | 7.9 | 6.3 | 6.2 |
| Adjusted EBITA | 438 | 390 | 1,211 | 1,086 |
| Adjusted EBITA margin, % | 7.9 | 7.9 | 6.3 | 6.3 |
| Profit/loss after tax | 375 | 320 | 956 | 820 |
| Cash flow from operating activities | 807 | 650 | 1 052 | 1 038 |
| Operating cash flow | 821 | 679 | 1 273 | 1 171 |
| Interest coverage ratio | 58.2 | 30.0 | 38.6 | 22.9 |
| Cash conversion, % | 102 | 106 | 102 | 106 |
| Net debt/adjust. EBITDA, 12 m | 1.1 | 1.7 | 1.1 | 1.7 |
| Order intake | 6,629 | 4,620 | 20,652 | 17,972 |
| Order backlog | 11,992 | 10,271 | 11,992 | 10,271 |
The leading end-to-end service and installation provider in the Nordics
The fourth quarter of 2018 was another record quarter for Bravida. We are reporting our best earnings ever, with high growth and lots of good acquisitions, but we are still not satisfied. We have a business model that works, and our organisation retains significant potential.
We are seeing continued good demand and growth in the fourth quarter was strong. Growth was well in line with our financial target of 12 percent, and organic growth was 4 percent. The order backlog rose by 17 percent. In Denmark and Finland growth was good, owing to high production in Denmark and acquisitions completed in Finland. Growth was also good in Sweden and Norway.
EBITA rose by 12 percent and the EBITA margin was unchanged at 7.9 percent.
The acquisitions we have made in Finland have meant we are close to achieving critical mass and have increased the quality of our operations, resulting in significantly improved profitability.
In Denmark we improved the EBITA margin through more efficient operations and administration.
The EBITA margin remains at a high level in Sweden. However, the margin was slightly lower than in the previous year owing to a positive non-recurring effect in the fourth quarter of 2017.
The level of production in Oras' old projects remained high in the quarter, which had a negative impact on the EBITA margin. My assessment is that the unprofitable projects that Oras had when it was acquired in May 2017 will be completed in the first quarter of 2019.
Cash flow for the fourth quarter reduced our net liabilities to SEK -1,365 million. Our cash conversion was 102 percent, which is above our financial target. The Board proposes that the dividend be raised by 29 percent SEK 2.00 per share. Since our IPO in 2015 we have raised the dividend by an average of 26 percent a year. For me, this proves we have a business model that generates cash flow through profitable growth.
Bravida has signed two agreements with the Swedish Transport Administration as part of the Stockholm Bypass Project. These agreements relate to the contracts awarded to Bravida in the third quarter of 2018. One contract for SEK 1,597 million has been recorded in the order backlog for the fourth quarter. The second contract, for SEK 1,144 million, will be recorded in the order backlog in the first quarter of 2019.
The period 2019–2020 will cover project design and planning, which will generate some income. The bulk of production operations will be carried out during 2021–2023, after which Bravida will be responsible for maintenance and service for another two years.
The Stockholm Bypass Project is an important project that we are proud to be involved in. Bravida has extensive experience from previous infrastructure projects and we have the scale and capabilities to manage large and complex projects. We have been working on preparations relating to the Stockholm Bypass Project for the past few years and we're now focusing on establishing a strong delivery organisation.
Over the course of the year we completed 12 acquisitions and signed agreements for another three acquisitions, which were completed in January 2019. The acquisitions made in 2018/19 increase annual sales by around SEK 900 million. These acquisitions strengthen our local market position and expand our customer offering.
During the autumn we strengthened the acquisition team to ensure a continued high pace of acquisitions and good integration of future acquisitions. We see a continued good pipeline of potential acquisitions and are pursuing a number of interesting acquisition discussions.
Bravida has a well-balanced level of risk as a result of being based in around 160 locations in the Nordic region and having over 55,000 customers across different segments. Our geographical diversification, our broad offering and our solid and differentiated customer base provides us with low exposure to individual markets and customers.
2018 was our best ever year but there is still lots we can improve on, including in operations, purchasing and on costs. Demand for service and installation is good in our markets and I look forward with confidence to 2019.
Mattias Johansson, Stockholm, February 2019
Net sales increased by 12 percent to SEK 5,521 million (4,927). Adjusted for currency fluctuations and acquisitions, net sales increased by 4 percent. Currency fluctuations had a positive 2 percent impact on net sales, while acquisitions increased net sales by 6 percent. Net sales rose in all countries; in Sweden by 5 percent, in Norway by 13 percent, in Denmark by 23 percent and in Finland by 63 percent. The high growth in Denmark and Norway was largely due to organic growth. The growth in Finland was mainly due to the acquisitions of Adison Oy in January 2018 and Hangö Elektriska Oy in October 2018. Compared with the fourth quarter of 2017, service business increased by 4 percent and installation business by 20 percent. The service business accounted for 46 percent (50) of total net sales. The increase in net sales in the installation business was due to the good growth in the order backlog reported in recent years. Service growth was negatively affected by extended holiday leave at the end of the quarter.
Order intake amounted to SEK 6,629 million (4,620), a rise of 43 percent. Order intake increased in Sweden and Finland, but was lower in Denmark and Norway. The order backlog at 31 December was 17 percent higher than at the same point in the previous year and amounted to SEK 11,992 million (10,271). During the quarter the order backlog rose by SEK 1,247 million. The increase was attributable to business operations in Sweden and Finland. In Sweden, the first of two orders from the Swedish Transport Administration for the Stockholm Bypass Project was recorded for SEK 1,597 million. The second order from the Swedish Transport Administration, for SEK 1,144 million, will be recorded in the order backlog for the first quarter of 2019. In Norway, the continued completion of Oras' old projects and a high level of production in a large infrastructure project resulted in a reduction in the order backlog. In Denmark, two large projects are under production, which reduced the order backlog. The order backlog only includes installation projects; order intake for the service business is recognised at invoicing.
Net sales increased by 12 percent to SEK 19,305 million (17,293). Adjusted for currency fluctuations and acquisitions, the increase was 4 percent. Currency fluctuations had a positive 2 percent impact, while acquisitions increased net sales by 6 percent. Sales increased in all countries; in Sweden by 4 percent, in Norway by 14 percent, in Denmark by 24 percent and in Finland by 50 percent. In Norway the high growth was due to the acquisition of Oras and organic growth. The high growth in Denmark was due to organic growth, while in Finland it was due to the acquisition of Adison Oy in January 2018 and Hangö Elektriska Oy in October 2018.
Compared with the same period of 2017, net service sales increased by 9 percent and net installation sales by 14 percent. The service business accounted for 46 percent (47) of total net sales.
The increase in net sales in the installation business was mainly due to good growth in the order backlog reported since 2016. The growth in service business is the result of the Group's initiatives to boost service sales.
Order intake amounted to SEK 20,652 million (17,972), an increase of 15 percent.
Operating profit was SEK 436 million (389). EBITA increased by 12 percent to SEK 438 million (390), resulting in an EBITA margin of 7.9 percent (7.9).
EBITA increased in all countries. The EBITA margin improved in Denmark and Finland, while in Sweden and Norway it was slightly lower. Group-wide profit was SEK 11 million (6).
Net financial items totalled SEK 10 million (-15). The positive figure for net financial items was due to exchange rate effects. Profit after financial items was SEK 446 million (373). Profit after tax was SEK 375 million (320). Basic earnings per share increased by 17 percent to SEK 1.85 (1.59). Diluted earnings per share were SEK 1.85 (1.58).
Operating profit was SEK 1,207 million (1,072). EBITA increased by 12 percent to SEK 1,211 million (1,078), resulting in an EBITA margin of 6.3 percent (6.2). EBITA increased in all countries. The EBITA margin improved in Denmark and Finland, while it was unchanged in Sweden and slightly lower in Norway. Group-wide profit was SEK 27 million (18).
Specific costs were SEK – million (8). Adjusted EBITA was SEK 1,211 million (1,086) and the adjusted EBITA margin was 6.3 per-
cent (6.3). Net financial items totalled SEK -16 million (-54), with the improvement due to lower debt, lower financing expenses and positive exchange rate effects. Profit after financial items was SEK 1,191 million (1,019). Profit after tax was SEK 956 million (820). Basic earnings per share increased by 16 percent to SEK 4.73 (4.07). Diluted earnings per share were SEK 4.72 (4.06).
Depreciation and amortisation amounted to SEK 10 million (9) for the quarter and SEK 33 million (34) for January to December.
The tax expense for the quarter was SEK -71 million (-53). Profit before tax was SEK 446 million (373). Effective tax was 16 percent (14). Tax paid amounted to SEK 30 million (20).
The tax expense for January to December was SEK -235 million (-199). Profit before tax was SEK 1,191 million (1,019). The effective tax rate was 20 percent (20), which includes the use of loss carry-forwards. Tax paid amounted to SEK 219 million (95).
The tax rate in Sweden is 22 percent, in Norway it is 23 percent, in Denmark 22 percent and in Finland 20 percent. The Swedish and Norwegian deferred tax positions have been revalued as a result of reduced corporation tax.
Cash flow from operating activities was SEK 807 million (650) The improvement in cash flow was due to higher operating profit and a reduction of SEK 292 million (265) in working capital. Payment of tax increased to SEK -30 million (-20). Cash flow from investing activities was SEK -109 million (-12), of which acquisitions of subsidiaries and businesses totalled SEK -105 million (-6). Cash flow from financing activities was SEK -400 million (-201) and related to the repayment of loans. 12-month cash conversion was 102 percent (106).
Cash flow from operating activities was SEK 1,052 million (1,038). The higher cash flow was due to improved operating profit, which was impacted by increased working capital, SEK -25 million (63), and higher tax payments. The payment of tax increased to SEK -219 million (-95), owing to the settlement of tax liabilities from previous financial years and higher preliminary tax. Cash flow from investing activities was SEK -249 million (-231), while acquisitions of subsidiaries and businesses totalled SEK -237 million (-215). Cash flow from financing activities, relating to the repayment of loans, a dividend and the net reduction of utilised overdraft facilities, amounted to SEK -914 million (-254).
During the quarter, three acquisitions were completed in Sweden, adding a total of SEK 260 million in annual sales. The acquired companies are heating and plumbing, and electrical businesses. In Finland, an acquisition was completed that adds sales of SEK 160 million; the company operates in the electrical, heating and plumbing, and HVAC segments.
A total of twelve acquisitions were completed in 2018; seven in Sweden, two in Finland, two in Denmark and one in Norway. The acquired companies add annual sales totalling approximately SEK 800 million.
Bravida's net debt at 31 December was SEK -1,365 million (-1,862), which corresponds to a capital structure (net debt/adjusted EBITDA) ratio of 1.1 (1.7). Consolidated cash and cash equivalents were SEK 735 million (839) at 31 December. Interest-bearing liabilities amounted to SEK 2,100 million (2,701) at 31 December, SEK 800 million (1,000) of which was commercial paper. Bravida's total credit facilities amounted to SEK 2,900 million (3,703), of which SEK 1,568 million (1,800) was unused at 31 December. At the end of the period, equity totalled SEK 5,238 million (4,662). The equity/assets ratio was 36.6 percent (34.9).
The average number of employees at 31 December was 11,475 (10,643), an increase of 8 percent.
Revenues for the quarter were SEK 50 million (45) and profit after net financial items was SEK 24 million (2). Revenues for the January–December period were SEK 173 million (151) and earnings after net financial items were SEK 57 million (-9).
Bravida Holding AB's ordinary shares are listed on the Nasdaq Stockholm Large Cap list. At 31 December Bravida had 9,587 shareholders, according to Euroclear. At 31 December the largest shareholders were Capital Group funds, Mawer Investment Management funds, Swedbank Robur funds, Lannebo funds and Fourth National Pension Insurance Fund (AP4). Bravida has no shareholders that hold shares exceeding 10 percent of voting
| SEK MIL. | Oct– Dec 2018 |
Oct– Dec 2017 |
Jan– Dec 2018 |
Jan– Dec 2017 |
|---|---|---|---|---|
| Net sales | 5,521 | 4,927 | 19,305 | 17,293 |
| Change | 594 | 650 | 2,012 | 2,501 |
| Change, % | 12.1 | 15.2 | 11.6 | 16.9 |
| Of which | ||||
| Organic growth, % | 4 | 6 | 4 | 6 |
| Acquisitions, % | 6 | 10 | 6 | 10 |
| Currency effects, % | 2 | -1 | 2 | 1 |
rights. Just over 55 percent of the shares are held by foreign shareholders.
The listed price for Bravida's ordinary shares at 28 December 2018 was SEK 61.30 (54.85), which equates to a market capitalisation of SEK 12,393 million. Total shareholder return, including dividends, over the past 12 months was 14.6 percent.
Share capital amounts to SEK 4 million divided among 203,316,598 shares, of which 202,166,598 are ordinary shares and 1,150,000 are class C shares. Ordinary shares entitle holders to one vote and a dividend payment, while C shares entitle holders to one-tenth of a vote and no dividend.
The Board of Directors proposes a dividend of SEK 2.00 (1.55) per share for 2018. The proposal represents an increase of 29 percent and corresponds to 42 percent (38) of net earnings per share. The proposed dividend totals SEK 404 million (312).
Bravida has appointed Åsa Neving as new CFO for the Bravida Group and as a member of Group management. She will take up the role in spring 2019. Åsa Neving holds an MSc in Economics and Business, and previously held a range of management positions at the Vattenfall Group. She joins Bravida from Svevia AB, where she was CFO.
The IFRS 16 Leasing accounting standard will be applied from 1 January 2019. The standard will mean the recognition of Bravida's leases in the balance sheet, resulting in an increase in liabilities and total assets. The standard will have an effect on a number of key performance indicators such as the capital structure target and the EBITA margin. According to current estimates, there will be a negative effect of 0.4x on the capital structure target of net debt/adjusted EBITDA and a positive effect of 0.1 percentage points on the EBITA margin. It is assessed that current financial targets do not need to be adjusted. A description of the effects of opening balances is provided in Note 1 on page 16.
Changes in market conditions, financial turmoil and political decisions are the external factors that mainly affect demand for new construction of housing and commercial property, as well as investment from industry and the public sector. Demand for service and maintenance is less sensitive to economic fluctuations. Operating risks are related to day-to-day business operations such as tendering, price risks, capacity utilisation and revenue recognition. Management of these risks is part of Bravida's ongoing business process.
The percentage-of-completion method is applied and is based on the extent of completion of each project and the expected date of completion. A well-developed process for the monitoring of projects is essential in limiting the risk of incorrect revenue recognition. Bravida continually monitors the financial status of each project to ensure that individual project calculations are not exceeded. The Group is also exposed to impairment loss risks in fixed-price contracts and various types of financial risk such as currency, interest rate and credit risk. These material risks and uncertainties apply to both parent company and the consolidated Group.
No transactions with related parties outside the Group took place during the period.
On 1 January 2019 Bravida acquired three companies. Insight Building Automation in Denmark with sales of SEK 35 million; Carrier Refrigeration Sweden in Sweden with sales of SEK 50 million; and Elbolaget Glödlampan in Sweden with sales of SEK 20 million.
In January 2019 Lars Täuber became Head of Division Stockholm and becomes a member of Bravida's Group management.
rolling 12 months
Demand for service and installation is good. Important drivers include new-builds and the renovation of public-sector buildings and offices, as well as investment in infrastructure and energy efficiency measures. Confidence indicators for the construction industry are at a normal level. We expect a gradual reduction in demand for technical installations in new-build housing. This is being replaced, however, by the upgrade of housing and increased demand for other types of installation work.
lation business. EBITA increased by 3 percent to SEK 246 million (239), resulting in an EBITA margin of 8.5 percent (8.7). Earnings for the fourth quarter 2017 were boosted by a non-recurring item regarding the repayment of pension funds, which is the main reason why the EBITA margin for the fourth quarter of 2018 was slightly lower in comparison.
Net sales increased by 4 percent to SEK 10,279 million (9,847). Net sales growth was due to good growth in service business.
EBITA increased by 5 percent to SEK 692 million (661), resulting in an EBITA margin of 6.7 percent (6.7).
Order intake was 91 percent higher than for the same period of the previous year, and amounted to SEK 4,742 million (2,481). One of two orders for the Stockholm Bypass Project was recorded for SEK 1,597 million during the quarter. The second order will be recorded in the first quarter of 2019 at an order value of SEK 1,144 million. In other respects, order intake was generally better than in the same quarter in 2017 and all divisions reported increased order intake. Order intake mainly related to small and medium-sized installation projects and service assignments.
The order backlog at the end of the quarter was 32 percent higher than at the same point of the previous year and amounted to SEK 7,094 million (5,372); the order backlog increased by SEK 1,880 million (-274) over the quarter. The rise in the order backlog excluding the Stockholm Bypass Project was SEK 283 million and all divisions reported an increased order backlog for the fourth quarter.
Order intake was 17 percent higher than for the same period for the previous year, and amounted to SEK 11,978 million (10,275). Excluding the large order for the Stockholm Bypass Project, order intake rose by 1 percent.
Net sales by quarter, Sweden Net sales rolling 12 months, Sweden
SEK MIL. Oct–Dec 2018 Oct–Dec 2017 Jan–Dec 2018 Jan–Dec 2017 Net sales 2,885 2,755 10,279 9,847 EBITA 246 239 692 661 EBITA margin, % 8.5 8.7 6.7 6.7 Order intake 4,742 2,481 11,978 10,275 Order backlog 7,094 5,372 7,094 5,372 Average number of employees 5,971 5,553 5,971 5,553
Umeå is home to the Nordic region's most modern climbing centre. Construction of the new centre set high standards for lighting, fire safety and ventilation. Bravida met these requirements using the latest technical solutions in electrical systems, heating and plumbing, HVAC and sprinklers. The centre, which has facilities for both rope-based climbing and bouldering, opened in 2018 and is part of the IKSU sports association.
The service and installation market is healthy. New public investment in and maintenance of road and transport infrastructure and health care are important drivers. There is also good demand for investments relating to the shift towards greener sources of energy such as wind power, solar energy and electric car charging.
Net sales increased by 13 percent to SEK 1,393 million (1,228). The growth was mainly attributable to the installation business. The increase in net sales was due to organic growth and a 5 percent positive effect from currency translation.
EBITA rose by 6 percent to SEK 92 million (87), resulting in an EBITA margin of 6.6 percent (7.1). The lower EBITA margin was due to the continued completion of Oras' old projects with weak profitability. Oras was acquired in May 2017, and its project portfolio included a number of projects with weak profitability. The acquired Oras projects are expected to be completed in the first quarter of 2019.
Net sales increased by 14 percent to SEK 4,777 million (4,185). This growth was due to the acquisition of Oras in May 2017, organic growth and a positive currency translation effect of 3 percent.
Growth is attributable to both service and installation business. EBITA increased by 13 percent to SEK 285 million (254), resulting in an EBITA margin of 6.0 percent (6.1).
Order intake decreased by 29 percent to SEK 853 million (1,195). No large projects were reported in the order intake for the period.
The order backlog at the end of the quarter was 9 percent lower than at the same point in the previous year and amounted to SEK 2,552 million (2,804), while the order backlog decreased by SEK -541 million (-91) over the quarter. The lower order backlog was due to the continued completion of Oras projects with weak profitability and a high level of production in a large road tunnel project. Over the last 12 months, 75 percent of the acquired order backlog from Oras has been completed. The order backlog remains at a good level.
Order intake increased by 3 percent to SEK 4,525 million (4,406).
Net sales by quarter, Norway Net sales rolling 12 months, Norway
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales | 1,393 | 1,228 | 4,777 | 4,185 |
| EBITA | 92 | 87 | 285 | 254 |
| EBITA margin, % | 6.6 | 7.1 | 6.0 | 6.1 |
| Order intake | 853 | 1,195 | 4,525 | 4,406 |
| Order backlog | 2,552 | 2,804 | 2,552 | 2,804 |
| Average number of employees | 2,994 | 2,718 | 2,994 | 2,718 |
Europe's largest land-based wind farm is being constructed in Central Norway. Once fully operational, the facility will supply 170,000 households with electricity. Bravida has been contracted to supply seven electrical substations that will collect 33 kV from the wind turbines and transform up to 132kV for the central grid. The facility is due to enter service in 2020.
The service and installation market is healthy. The housing market is growing, which is contributing to increased demand for technical installations in housing new-builds and upgrades. New-builds and the upgrade of public-sector buildings are contributing to a stable market. Demand from the business sector has grown for premises and the installation of new technical solutions for automation and energy optimisation. Confidence indicators for the construction industry are at a normal level.
Net sales increased by 23 percent to SEK 902 million (733). The increase in net sales was mainly attributable to the installation business, with two large hospital projects currently underway. Currency translation had a positive 5 percent impact on net sales.
EBITA increased by 40 percent to SEK 69 million (49), resulting in an EBITA margin of 7.7 percent (6.7).
Net sales increased by 24 percent to SEK 3,171 million (2,547). The growth in sales was mainly due to increased operations in the installation business. Currency translation had a positive 6 percent impact on net sales.
EBITA increased by 41 percent to SEK 185 million (131), resulting in an EBITA margin of 5.8 percent (5.1).
Order intake was 5 percent lower than for the same period of the previous year, and amounted to SEK 697 million (737). Order intake mainly related to small and medium-sized installation projects and service assignments.
The order backlog at the end of the quarter was 2 percent higher than for the same period of the previous year and amounted to SEK 1,787 million (1,752). The order backlog decreased by SEK -163 million (5) in the quarter, owing to a high level of production in two large projects.
Order intake increased by 23 percent to SEK 3,164 million (2,567).
| NET SALES (SEK MIL.) | ||
|---|---|---|
| ---------------------- | -- | -- |
Net sales by quarter, Denmark Net sales rolling 12 months, Denmark
SEK MIL. Oct–Dec 2018 Oct–Dec 2017 Jan–Dec 2018 Jan–Dec 2017 Net sales 902 733 3,171 2,547 EBITA 69 49 185 131 EBITA margin, % 7.7 6.7 5.8 5.1 Order intake 697 737 3,164 2,567 Order backlog 1,787 1,752 1,787 1,752 Average number of employees 1,830 1,803 1,830 1,803
Hvidovre Hospital in Copenhagen is being extended with a new wing and new indoor parking. The new wing will house the hospital's accident and emergency, cardiology, paediatrics and maternity departments. Bravida is carrying out all heating and plumbing installation work in both the wing and indoor parking facility, which together comprise almost 40,000 square metres. Bravida is also providing installation work in an ongoing cooling and heating project in the existing hospital building.
Bravida believes demand for technical service and installation is stable. The construction industry has improved over the past few years and building firms are reporting increased sales, which is contributing to stable demand for technical installations. Confidence indicators for the construction industry are at a normal level.
Net sales increased by 63 percent to SEK 345 million (212). The acquisition of Adison Oy in January 2018 and Hangö Elektriska Oy was the main reason for the strong growth in net sales. Growth is attributable to both service and installation business. Currency translation had a positive 5 percent impact on net sales.
EBITA increased by 132 percent to SEK 19 million (8), resulting in an EBITA margin of 5.5 percent (3.9).
Net sales increased by 50 percent to SEK 1,114 million (745). Growth is attributable to both service and installation business. The significant growth was mainly due to acquisitions completed. Currency translation had a positive 6 percent impact on net sales.
EBITA was SEK 22 million (15), resulting in an EBITA margin of 2.0 percent (2.0).
Net sales by quarter, Finland
Net sales 12 months, Finland
EBITA by quarter, Finland
EBITA, rolling 12 months, Finland
Order intake was 65 percent higher than for the same period of the previous year, and amounted to SEK 343 million (208). Order intake mainly related to small and medium-sized installation projects and service assignments.
The order backlog at the end of the quarter was 62 percent higher than for the same period of the previous year, which was due in part to acquisitions completed in 2018. The order backlog was SEK 559 million (344), with a SEK 71 million (-4) increase in the order backlog over the quarter.
Order intake was 35 percent higher than for the same period of the previous year, and amounted to SEK 1,022 million (755).
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales | 345 | 212 | 1,114 | 745 |
| EBITA | 19 | 8 | 22 | 15 |
| EBITA margin, % | 5.5 | 3.9 | 2.0 | 2.0 |
| Order intake | 343 | 208 | 1,022 | 755 |
| Order backlog | 559 | 344 | 559 | 344 |
| Average number of employees | 599 | 496 | 599 | 496 |
When Helsinki's Pohjansäde apartment block, constructed in 1913, was due for refurbishment, Bravida's plumbing replacement department in Helsinki upgraded piping and electrical and heating systems. The building, which was in very poor condition, underwent complete refurbishment, including the replacement of bathrooms and kitchens. Over a period of four months Bravida upgraded all technical systems in the building and its 127 apartments.
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales | 5,521 | 4,927 | 19,305 | 17,293 |
| Production costs | -4,577 | -4,113 | -16,502 | -14,718 |
| Gross profit/loss | 944 | 815 | 2,803 | 2,575 |
| Selling and administrative expenses | -508 | -426 | -1,596 | -1 502 |
| Operating profit/loss | 436 | 389 | 1,207 | 1,072 |
| Net financial items | 10 | -15 | -16 | -54 |
| Profit/loss before tax | 446 | 373 | 1,191 | 1,019 |
| Tax on profit/loss for the period | -71 | -53 | -235 | -199 |
| Profit/loss for the period | 375 | 320 | 956 | 820 |
| Profit/loss for the period attributable to: | ||||
| Equity holders of the parent | 372 | 319 | 951 | 818 |
| Non-controlling interests | 2 | 1 | 5 | 2 |
| Profit/loss for the period | 375 | 320 | 956 | 820 |
| Basic earnings per share, SEK | 1.85 | 1.59 | 4.73 | 4.07 |
| Diluted earnings per share, SEK | 1.85 | 1.58 | 4.72 | 4.06 |
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Profit/loss for the period | 375 | 320 | 956 | 820 |
| Other comprehensive income | ||||
| Items transferred or that can be transferred to profit or loss | ||||
| Translation differences for the period from the translation of foreign operations | -56 | 1 | 44 | -26 |
| Items that cannot be transferred to profit or loss | ||||
| Revaluation of defined-benefit pensions | -98 | 60 | -172 | 23 |
| Tax attributable to the revaluation of pensions | 21 | -13 | 37 | -5 |
| Other comprehensive income for the period | -133 | 47 | -91 | -8 |
| Comprehensive income for the period | 242 | 367 | 865 | 812 |
| Comprehensive income for the period attributable to: | ||||
| Equity holders of the parent | 239 | 366 | 860 | 811 |
| Non-controlling interests | 2 | 1 | 5 | 2 |
| Comprehensive income for the period | 242 | 367 | 865 | 812 |
| SEK MIL. | 31/12/18 | 31/12/17 |
|---|---|---|
| Goodwill | 8,210 | 7,844 |
| Other non-current assets | 168 | 154 |
| Total non-current assets | 8,378 | 7,998 |
| Trade receivables | 3,378 | 3,030 |
| Income accrued but not invoiced | 1,235 | 1,004 |
| Other current assets | 598 | 489 |
| Cash and cash equivalents | 735 | 839 |
| Total current assets | 5,946 | 5,362 |
| Total assets | 14,324 | 13,360 |
| Equity attributable to holders of the parent | 5,223 | 4,652 |
| Equity attributable to non-controlling interests | 15 | 10 |
| Total equity | 5,238 | 4,662 |
| Other non-current liabilities | 1,967 | 2,056 |
| Total other non-current liabilities | 1,967 | 2,056 |
| Trade payables | 2,058 | 1,866 |
| Income invoiced but not accrued | 1,803 | 1,519 |
| Other current liabilities | 3,259 | 3,257 |
| Total current liabilities | 7,120 | 6,642 |
| Total liabilities | 9,086 | 8,698 |
| Total equity and liabilities | 14,324 | 13,360 |
| Of which interest-bearing liabilities | 2,100 | 2,701 |
| SEK MIL. | Jan–Dec 2018 | Jan–Dec 2017 |
|---|---|---|
| Consolidated equity | ||
| Opening balance | 4,662 | 4,079 |
| Comprehensive income for the period | 865 | 812 |
| Dividend | -312 | -252 |
| Cost long-term incentive programme | 23 | 23 |
| Closing balance | 5,238 | 4,662 |
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Profit/loss before tax | 446 | 373 | 1,191 | 1,019 |
| Adjustment for non-cash items | 99 | 32 | 105 | 51 |
| Income taxes paid | -30 | -20 | -219 | -95 |
| Changes in working capital | 292 | 265 | -25 | 63 |
| Cash flow from operating activities | 807 | 650 | 1,052 | 1,038 |
| Investing activities | ||||
| Acquisition of subsidiaries and businesses | -105 | -6 | -237 | -215 |
| Other | -4 | -7 | -12 | -16 |
| Cash flow from investing activities | -109 | -12 | -249 | -231 |
| Financing activities | ||||
| Repayment of loan | -400 | -200 | -600 | -1,700 |
| New loan | – | – | – | 1,700 |
| Change in utilisation of overdraft facility | 0 | -1 | -1 | -2 |
| Dividend paid | – | – | -312 | -252 |
| Cash flow from financing activities | -400 | -201 | -914 | -254 |
| Cash flow for the period | 298 | 437 | -111 | 553 |
| Cash and cash equivalents at start of year | 438 | 388 | 839 | 286 |
| Translation difference in cash and cash equivalents | -1 | 15 | 7 | 0 |
| Cash and cash equivalents at end of period | 735 | 839 | 735 | 839 |
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Operating profit/loss | 436 | 389 | 1,207 | 1,072 |
| Depreciation and amortisation | 10 | 9 | 33 | 34 |
| Other adjustments for non-cash items | 87 | 24 | 70 | 17 |
| Capital expenditure | -4 | -7 | -12 | -16 |
| Changes in working capital | 292 | 265 | -25 | 63 |
| Operating cash flow | 821 | 679 | 1,273 | 1,171 |
| SEK MIL. | Oct–Dec 2018 |
Oct–Dec 2017 |
Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales | 50 | 45 | 173 | 151 |
| Selling and administrative expenses | -35 | -34 | -111 | -126 |
| Operating profit/loss | 16 | 11 | 63 | 25 |
| Net financial items | 9 | -9 | -5 | -34 |
| Profit/loss after financial items | 24 | 2 | 57 | -9 |
| Net group contribution | 276 | 644 | 275 | 644 |
| Transfer to/from untaxed reserves | -84 | -160 | -84 | -160 |
| Profit/loss before tax | 217 | 487 | 248 | 475 |
| Tax | -55 | -105 | -55 | -105 |
| Profit/loss for the period | 161 | 382 | 193 | 370 |
| SEK MIL. | 31/12/18 | 31/12/17 |
|---|---|---|
| Shares in subsidiaries | 7,341 | 7,341 |
| Total non-current assets | 7,341 | 7,341 |
| Receivables from Group companies | 1,608 | 1,562 |
| Current receivables | 61 | 33 |
| Total current receivables | 1,668 | 1,595 |
| Cash and bank balances | 624 | 644 |
| Total current assets | 2,292 | 2,240 |
| Total assets | 9,634 | 9,581 |
| Restricted equity | 4 | 4 |
| Non-restricted equity | 4,804 | 4,901 |
| Equity | 4,809 | 4,905 |
| Untaxed reserves | 474 | 390 |
| Liabilities to credit institutions | 1,300 | 1,700 |
| Provisions | 1 | 0 |
| Total non-current liabilities | 1,301 | 1,700 |
| Short-term loans | 800 | 1,000 |
| Liabilities to Group companies | 2,212 | 1,429 |
| Other current liabilities | 39 | 157 |
| Total current liabilities | 3,051 | 2,585 |
| Total equity and liabilities | 9,634 | 9,581 |
| Of which interest-bearing liabilities | 2,100 | 2,700 |
| INCOME STATEMENT, SEK MIL. | Oct–Dec 2018 |
Jul–Sep 2018 |
Apr–Jun 2018 |
Jan–Mar 2018 |
Oct–Dec 2017 |
Jul–Sep 2017 |
Apr–Jun 2017 |
Jan–Mar 2017 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 5,521 | 4,437 | 4,790 | 4,557 | 4,927 | 3,926 | 4,325 | 4,115 |
| Production costs | -4,577 | -3,823 | -4,131 | -3,972 | -4,113 | -3,372 | -3,675 | -3,558 |
| Gross profit/loss | 944 | 615 | 659 | 585 | 815 | 554 | 649 | 557 |
| Selling and administrative expenses | -508 | -348 | -380 | -360 | -426 | -332 | -396 | -348 |
| Operating profit/loss | 436 | 267 | 279 | 225 | 389 | 222 | 253 | 209 |
| Net financial items | 10 | -10 | -7 | -9 | -15 | -11 | -13 | -14 |
| Profit/Loss after financial items | 446 | 256 | 273 | 216 | 373 | 211 | 239 | 194 |
| Tax on profit/loss for the period | -71 | -55 | -61 | -48 | -53 | -48 | -54 | -44 |
| Profit/loss for the period | 375 | 202 | 212 | 168 | 320 | 164 | 186 | 151 |
| BALANCE SHEET, SEK MIL. | 31/12/18 | 30/09/18 | 30/06/18 | 31/03/18 | 31/12/17 | 30/09/17 | 30/06/17 | 31/03/17 |
|---|---|---|---|---|---|---|---|---|
| Goodwill | 8,210 | 8,153 | 8,150 | 8,002 | 7,844 | 7,796 | 7,780 | 7,593 |
| Other non-current assets | 168 | 152 | 157 | 154 | 154 | 150 | 153 | 145 |
| Current assets | 5,211 | 5,363 | 5,154 | 4,684 | 4,523 | 4,463 | 4,439 | 3,890 |
| Cash and cash equivalents | 735 | 438 | 604 | 660 | 839 | 388 | 360 | 645 |
| Total assets | 14,324 | 14,107 | 14,065 | 13,500 | 13,360 | 12,796 | 12,732 | 12,272 |
| Equity | 5,238 | 4,988 | 4,804 | 4,921 | 4,662 | 4,286 | 4,116 | 4,221 |
| Non-current borrowings | 1,300 | 1,500 | 1,500 | 1,500 | 1,700 | 1,700 | 2,700 | 2,700 |
| Other non-current liabilities | 667 | 539 | 515 | 395 | 356 | 353 | 336 | 258 |
| Current liabilities | 7,120 | 7,081 | 7,246 | 6,684 | 6,642 | 6,458 | 5,581 | 5,093 |
| Total equity and liabilities | 14,324 | 14,107 | 14,065 | 13,500 | 13,360 | 12,796 | 12,732 | 12,272 |
| CASH FLOW, SEK MIL. | Oct–Dec 2018 |
Jul–Sep 2018 |
Apr–Jun 2018 |
Jan–Mar 2018 |
Oct–Dec 2017 |
Jul–Sep 2017 |
Apr–Jun 2017 |
Jan–Mar 2017 |
|---|---|---|---|---|---|---|---|---|
| Cash flow from operating activities | 807 | -132 | 319 | 58 | 650 | -144 | 150 | 381 |
| Cash flow from investing activities | -109 | -29 | -66 | -45 | -12 | -31 | -174 | -14 |
| Cash flow from financing activities | -400 | 0 | -313 | -201 | -201 | 200 | -252 | 0 |
| Cash flow for the period | 298 | -161 | -60 | -188 | 437 | 25 | -276 | 367 |
| KEY FIGURES | Oct–Dec 2018 |
Jul–Sep 2018 |
Apr–Jun 2018 |
Jan–Mar 2018 |
Oct–Dec 2017 |
Jul–Sep 2017 |
Apr–Jun 2017 |
Jan–Mar 2017 |
|---|---|---|---|---|---|---|---|---|
| Operating margin % (EBIT) | 7.9 | 6.0 | 5.8 | 4.9 | 7.9 | 5.7 | 5.8 | 5.1 |
| EBITA margin, % | 7.9 | 6.0 | 5.9 | 5.0 | 7.9 | 5.7 | 5.9 | 5.1 |
| Adjusted EBITA margin, % | 7.9 | 6.0 | 5.9 | 5.0 | 7.9 | 5.7 | 6.1 | 5.1 |
| Return on equity,* % | 18.7 | 18.4 | 17.8 | 17.5 | 18.3 | 18.0 | 17.4 | 16.9 |
| Net debt | -1,365 | -2,062 | -1,896 | -1,841 | -1,862 | -2,515 | -2,343 | -2,058 |
| Net debt/adjust. EBITDA* | 1.1 | 1.7 | 1.7 | 1.6 | 1.7 | 2.3 | 2.2 | 2.0 |
| Cash conversion,* % | 102 | 93 | 94 | 75 | 106 | 88 | 104 | 98 |
| Interest coverage ratio | 58.2 | 34.3 | 30.0 | 32.7 | 30.0 | 19.8 | 26.6 | 15.9 |
| Equity/assets ratio, % | 36.6 | 35.4 | 34.2 | 36.5 | 34.9 | 33.5 | 32.3 | 34.4 |
| Order intake | 6,629 | 4,046 | 5,102 | 4,875 | 4,620 | 4,059 | 4,821 | 4,471 |
| Order backlog | 11,992 | 10,746 | 11,139 | 10,825 | 10,271 | 10,635 | 10,493 | 9,000 |
| Average no. of employees | 11,475 | 11,180 | 10,893 | 10,709 | 10,643 | 10,452 | 10,089 | 9,835 |
| Administration costs as % of sales | 9.2 | 7.8 | 7.9 | 7.9 | 8.6 | 8.5 | 9.2 | 8.5 |
| Working capital as % of sales** | -4.9 | -3.1 | -5.2 | -4.7 | -5.5 | -3.9 | -6.2 | -6.9 |
| Basic earnings per share, SEK*** | 1.85 | 1.00 | 1.05 | 0.83 | 1.59 | 0.81 | 0.92 | 0.75 |
| Diluted earnings per share, SEK | 1.85 | 1.00 | 1.05 | 0.83 | 1.58 | 0.81 | 0.92 | 0.75 |
| Equity per share, SEK*** | 25.91 | 24.67 | 23.76 | 24.41 | 23.13 | 21.26 | 20.42 | 20.94 |
| Cash flow from operating activities per share, SEK*** | 3.99 | -0.65 | 1.58 | 0.29 | 3.23 | -0.71 | 0.74 | 1.89 |
| Share price at balance sheet date, SEK | 61.30 | 72.90 | 71.15 | 59.70 | 54.85 | 59.65 | 61.55 | 58.10 |
*Calculated on rolling 12-month earnings **Calculated on rolling 12-month sales ***Calculated on the company's outstanding ordinary shares
The company presents certain financial measures in the interim report that are not defined under IFRS. The company believes these measures provide valuable additional information for investors and the company's management as they allow relevant trends to be assessed. Bravida's definitions of these measures may differ from other companies' definitions of the same terms. These financial measures should be regarded as complementary rather than replacing the measures defined under IFRS. Below are definitions of measures not defined under IFRS and not mentioned elsewhere in the interim report. These measures are reconciled in the tables below. Calculations do not always tally because amounts in the table below have been rounded to the nearest million Swedish kronor. For definitions of key figures, see page 20.
| RECONCILIATION OF KEY FIGURES, NOT DEFINED UNDER IFRS | Oct–Dec 2018 |
Jul–Sep 2018 |
Apr–Jun 2018 |
Jan–Mar 2018 |
Oct–Dec 2017 |
Jul–Sep 2017 |
Apr–Jun 2017 |
Jan–Mar 2017 |
|---|---|---|---|---|---|---|---|---|
| Net debt | ||||||||
| Interest-bearing liabilities | -2,100 | -2,500 | -2,500 | -2,500 | -2,701 | -2,903 | -2,703 | -2,703 |
| Cash and cash equivalents | 735 | 438 | 604 | 660 | 839 | 388 | 360 | 645 |
| Total net debt | -1,365 | -2,062 | -1,896 | -1,841 | -1,862 | -2,515 | -2,343 | -2,058 |
| EBITA/Adjusted EBITA | ||||||||
| Operating profit/loss (EBIT) | 436 | 267 | 279 | 225 | 389 | 222 | 253 | 209 |
| Depreciation, amortisation and impairment losses | 2 | 1 | 1 | 1 | 1 | 1 | 2 | 2 |
| EBITA | 438 | 267 | 280 | 226 | 390 | 223 | 255 | 211 |
| Adjustment relating to specific cost* | – | – | – | – | – | – | 8 | 0 |
| Adjusted EBITA | 438 | 267 | 280 | 226 | 390 | 223 | 263 | 211 |
| EBITDA /Adjusted EBITDA | ||||||||
| Operating profit/loss (EBIT) | 436 | 267 | 279 | 225 | 389 | 222 | 253 | 209 |
| Depreciation, amortisation and impairment losses EBITDA |
10 446 |
8 274 |
8 287 |
8 233 |
9 397 |
8 231 |
9 262 |
8 217 |
| Adjustment relating to specific costs* | – | – | – | – | – | – | 8 | 0 |
| Adjusted EBITDA | 446 | 274 | 287 | 233 | 397 | 231 | 270 | 217 |
| Working capital | ||||||||
| Current assets | 5,946 | 5,802 | 5,758 | 5,344 | 5,362 | 4,851 | 4,799 | 4,534 |
| Cash and cash equivalents | -735 | -438 | -604 | -660 | -839 | -388 | -360 | -645 |
| Current liabilities | -7,120 | -7,081 | -7,246 | -6,684 | -6,642 | -6,458 | -5,581 | -5,093 |
| Current loans | 800 | 1,000 | 1,000 | 1,000 | 1,001 | 1,203 | 3 | 3 |
| Provisions | 169 | 135 | 153 | 162 | 172 | 137 | 143 | 137 |
| Total working capital | -940 | -583 | -939 | -837 | -946 | -655 | -996 | -1,064 |
| Interest coverage ratio | ||||||||
| Profit/loss before tax | 446 | 256 | 273 | 216 | 373 | 211 | 239 | 194 |
| Interest expense | 8 | 8 | 9 | 7 | 13 | 11 | 9 | 13 |
| Total | 454 | 264 | 282 | 223 | 386 | 223 | 249 | 207 |
| Interest expense | 8 | 8 | 9 | 7 | 13 | 11 | 9 | 13 |
| Interest coverage ratio | 58.2 | 34.3 | 30.0 | 32.7 | 30.0 | 19.8 | 26.6 | 15.9 |
| Cash conversion | ||||||||
| Operating profit/loss before depreciation, amortisation and | ||||||||
| impairment losses, past 12 months | 1,241 | 1,192 | 1,148 | 1,123 | 1,107 | 1,070 | 1,035 | 1,006 |
| Non-cash provisions in working capital, last 12 months | 24 | -45 | -44 | -21 | -14 | 22 | 55 | 28 |
| Change in working capital, last 12 months | -25 | -49 | -35 | -260 | 63 | -148 | -18 | -54 |
| Investments in machinery and equipment, last 12 months | -12 | -15 | -17 | -20 | -21 | -28 | -27 | -22 |
| Total | 1,228 | 1,083 | 1,052 | 822 | 1,135 | 916 | 1,045 | 958 |
| Operating profit/loss, last 12 months | 1,207 | 1,160 | 1,116 | 1,089 | 1,072 | 1,037 | 1,004 | 978 |
| Cash conversion, last 12 months, % | 102 | 93 | 94 | 75 | 106 | 88 | 104 | 98 |
*See note 6
This is a translation of the Swedish Interim Report of Bravida Holding AB. In the event of inconsistency between the English and the Swedish versions, the Swedish version shall prevail. This interim report for the group has been prepared in accordance with IAS 34 Interim Reporting and appropriate sections of Chapter 9, Interim Reporting, of the Swedish Annual Accounts Act. The parts of the interim report that relate to the parent company have been prepared in accordance with Chapter 9, Interim Reporting, of the Swedish Annual Accounts Act.
Since 1 January 2018, Bravida has applied IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers.
For Bravida, the introduction of IFRS 9 will mean that credit losses will be recognised earlier than under IAS 39. The Group has historically had very low recorded bad debts and this is not expected to change going forward, so the impact of the impairment model on expected credit losses is immaterial. As the effects are immaterial, the transfer to the opening balance for 2018 is not affected.
IFRS 15 is replacing existing standards for revenue recognition. Initial assessment of the IFRS 15 criteria for recognition over time or at a particular date indicate that in most of these cases the goods are deemed to be controlled by the customer as they are installed, whereupon they will also be recognised over time rather than at the date when installation is completed. This implies no difference in revenue recognition compared with the current situation. The effects of this new accounting standard are immaterial for the Group. So the transition to IFRS 15 does not affect the opening balance for 2018.
IFRS 15 contains increased disclosure requirements on revenue. Information about the distribution of revenues is provided in Note 2 of the interim report.
Since the effects of IFRS 9 and IFRS 15 are immaterial, this report has essentially been prepared according to the same accounting policies and calculation methods as used for the 2017 annual accounts.
IFRS 16 replaces the existing standard for recognising leases and requires the recognition of essentially all leases in the balance sheet, and the depreciation/amortisation of right-of-use assets the be distinguished from interest on lease liabilities in the income statement. Bravida has opted to apply the new standard at transition using the modified retrospective approach, which means the comparative periods will not be recalculated. Application of the standard will be recognised at 1 January 2019. Bravida has also chosen to allow right-of-use assets to correspond to liabilities at transition, adjusted for any prepaid lease expenses. Bravida will also apply the practical exceptions for exempting shortterm leases and leases of low-value assets.
Bravida's lease portfolio mainly comprises rented premises and leased vehicles. Bravida's initial estimate is that an additional SEK 1,038 million in rightof-use assets and lease liabilities will be recognised in the balance sheet at transition, in addition to which prepaid rent of SEK 27 million will be reclassified from prepaid to right-of-use assets. Total assets and net debt will increase at transition. It is assessed that net debt will rise by SEK 1,038 million and the equity/assets ratio will decrease to 34 percent at the transition date. According to current calculations, the transition will have a marginal positive effect on EBITA compared with previous accounting policies.
The transition to IFRS 16 will have the following preliminary impact on the Group's balance sheet at the transition date on 1 January 2019.
| MSEK | 1 Jan 2019 |
|---|---|
| Right of use | 1,065 |
| Prepayments | -27 |
| Transition effect – assets | 1,038 |
| Non-current lease liabilities | 704 |
| Current lease liabilities | 334 |
| Transition effect – liabilities | 1,038 |
Amounts in the Group's financial reporting are in millions of Swedish kronor (SEK MIL.) unless stated otherwise. Rounding differences may occur.
Geographic markets constitute Bravida's operating segments. The Group's geographic markets comprise the countries; Sweden, Norway, Denmark and Finland.
| SEK MIL. | Oct–Dec 2018 |
Break down |
Oct–Dec 2017 |
Break down |
Jan–Dec 2018 |
Break down |
Jan–Dec 2017 |
Break down |
|---|---|---|---|---|---|---|---|---|
| Sweden | 2,885 | 52% | 2,755 | 56% | 10,279 | 53% | 9,847 | 57% |
| Norway | 1,393 | 25% | 1,228 | 25% | 4,777 | 25% | 4,185 | 24% |
| Denmark | 902 | 16% | 733 | 15% | 3,171 | 16% | 2,547 | 15% |
| Finland | 345 | 6% | 212 | 4% | 1,114 | 6% | 745 | 4% |
| Group-wide and eliminations | -5 | 0 | -36 | -31 | ||||
| Total | 5,521 | 4,927 | 19,305 | 17,293 |
| SEK MIL. | Oct–Dec 2018 |
EBITA Margin |
Oct–Dec 2017 |
EBITA Margin |
Jan–Dec 2018 |
EBITA Margin |
Jan–Dec 2017 |
EBITA Margin |
|---|---|---|---|---|---|---|---|---|
| Sweden | 246 | 8.5% | 239 | 8.7% | 692 | 6.7% | 661 | 6.7% |
| Norway | 92 | 6.6% | 87 | 7.1% | 285 | 6.0% | 254 | 6.1% |
| Denmark | 69 | 7.7% | 49 | 6.7% | 185 | 5.8% | 131 | 5.1% |
| Finland | 19 | 5.5% | 8 | 3.9% | 22 | 2.0% | 15 | 2.0% |
| Group and eliminations | 11 | 6 | 27 | 18 | ||||
| Total | 438 | 7.9% | 390 | 7.9% | 1,211 | 6.3% | 1,078 | 6.2% |
| Adjustments (specific costs)* | – | – | – | 8 | ||||
| Adjusted operating profit/loss | 438 | 7.9% | 390 | 7.9% | 1,211 | 6.3% | 1,086 | 6.3% |
| Amortisation of intangible assets | -2 | -1 | -4 | -6 | ||||
| Net financial items | 10 | -15 | -16 | -54 | ||||
| Profit/loss before tax | 446 | 373 | 1,191 | 1,018 |
*Specific costs have only had an effect on Group-wide operations, not the other segments
| DISTRIBUTION OF NET SALES | Oct–Dec 2018 | Oct–Dec 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NET SALES PER CATEGORY | Service | Installation | Total | Service | Installation | Total | ||||
| Sweden | 1,430 | 1,456 | 2,885 | 1,380 | 1,375 | 2,755 | ||||
| Norway | 672 | 721 | 1,393 | 717 | 511 | 1,228 | ||||
| Denmark | 362 | 541 | 902 | 304 | 429 | 733 | ||||
| Finland | 75 | 270 | 345 | 49 | 163 | 212 | ||||
| Eliminations | 9 | -15 | -5 | 10 | -11 | 0 | ||||
| The Group | 2,548 | 2,973 | 5,521 | 2,459 | 2,468 | 4,927 |
| Jan–Dec 2018 | Jan–Dec 2017 | |||||
|---|---|---|---|---|---|---|
| Service | Installation | Total | Service | Installation | Total | |
| Sweden | 5,032 | 5,247 | 10,279 | 4,642 | 5,205 | 9,847 |
| Norway | 2,330 | 2,447 | 4,777 | 2,199 | 1,986 | 4,185 |
| Denmark | 1,241 | 1,931 | 3,171 | 1,110 | 1,438 | 2,547 |
| Finland | 207 | 907 | 1,114 | 157 | 588 | 745 |
| Eliminations | 6 | -43 | -36 | 8 | -39 | -31 |
| The Group | 8,816 | 10,490 | 19,305 | 8,114 | 9,179 | 17,293 |
| AVERAGE NUMBER OF EMPLOYEES | Jan–Dec 2018 |
Jan–Dec 2017 |
|---|---|---|
| Sweden | 5,971 | 5,553 |
| Norway | 2,994 | 2,718 |
| Denmark | 1,830 | 1,803 |
| Finland | 599 | 496 |
| Group functions | 81 | 73 |
| Total | 11,475 | 10,643 |
Bravida completed the following acquisitions during the period January to December:
| Acquired unit | Country | Type | Month of acquisition |
Percentage of votes |
No. of employees |
Estimated annual sales in SEK MIL. |
|||
|---|---|---|---|---|---|---|---|---|---|
| Electrical business, Viborg | Denmark | Company | January | 100% | 30 | 26 | |||
| Electrical business, Enköping | Sweden | Company | January | 100% | 10 | 16 | |||
| Electrical, heating & plumbing, HVAC business, Helsinki region | Finland | Company | January | 100% | 70 | 190 | |||
| Cooling business, Stockholm | Sweden | Company | April | 100% | 12 | 30 | |||
| Electrical business, Sala | Sweden | Company | May | 100% | 18 | 20 | |||
| Fire and safety business, Västerås | Sweden | Company | May | 100% | 14 | 18 | |||
| Electrical business, Orkdal | Norway | Assets and liabilities | July | – | 10 | 11 | |||
| Heating & plumbing-, HVAC business, Skandenborg | Denmark | Company | July | 100% | 28 | 75 | |||
| Electrical business, Skåneregionen | Sweden | Company | October | 100% | 137 | 200 | |||
| Electrical, heating & plumbing, HVAC business, Hangö | Finland | Company | October | 100% | 90 | 160 | |||
| Electrical business, Skellefteå | Sweden | Company | November | 100% | 27 | 40 | |||
| Heating & plumbing business, Karlshamn | Sweden | Company | November | 100% | 12 | 20 |
Bravida normally uses an acquisition structure with a fixed purchase price and contingent consideration. The conditional purchase price is initially valued at the likely final amount, which for the year's acquisitions is SEK 55 million. The conditional purchase price are due for payment within three years. The acquisition analyses of acquired companies in 2018 are preliminary.
| Assets and liabilities included in acquisition | Fair value recognised in the Group, SEK MIL. |
|---|---|
| Intangible assets | 0 |
| Property, plant and equipment | 30 |
| Trade receivables* | 100 |
| Income accrued but not invoiced | 8 |
| Other current assets | 46 |
| Cash and cash equivalents | 89 |
| Long-term liabilities | -22 |
| Trade payables | -46 |
| Income invoiced but not accrued | -5 |
| Other current liabilities | -74 |
| Sum net identifiable assets and liabilities | 126 |
| Consolidated goodwill | 227 |
| Aquisition price | 380 |
| Cash and cash equivalents (acquired) | 89 |
| Net effect on cash and cash equivalents | 292 |
| Purchase price paid in cash | 292 |
| Consideration recognised as a liability** | 88 |
| Aquisition price | 380 |
*No significant write-downs of trade receivables exist **Of total debited purchase price, SEK 55 million consists of conditional purchase price
Bravida has completed three acquisitions since the end of the reporting period. In January, in Sweden Bravida acquired Carrier Refrigeration Sweden's service business with 37 employees and sales of approximately SEK 50 million and Elbolaget Glödlampan AB with 18 employees and sales of around SEK 20 million. In Denmark, Bravida acquired Insight Building Automation AS with 22 employees and sales of approximately SEK 35 million.
Bravida's business is affected by seasonal variations in the construction industry and employees' annual holiday. Bravida usually has a lower level of activity in the third quarter as it is the main holiday period. The fourth quarter normally has the highest earnings because many projects are completed during this period.
The fair value of the Group's financial assets and liabilities is not materially different from carrying amounts. No items other than the above mentioned conditional purchase price, in Note 3, are recognised at fair value in the balance sheet at level 3.
In the second quarter of 2017 these related to acquisition costs for Oras AS.
Stockholm, 15 February 2019 Bravida Holding AB
Mattias Johansson CEO and Group President
This interim report has not been reviewed by Bravida's auditors.
This information is information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on 15 February 2019.
Mattias Johansson, CEO & Group President E-mail: [email protected] Telephone: +46 8 695 20 00
This report contains information and opinions on future prospects for Bravida's business activities. The information is based on Group management's current expectations and estimates. Actual future outcomes may vary considerably from the forward-looking statements in this report, partly because of changes in economic, market and competitive conditions.
| Annual Report 2018 | Week 13 |
|---|---|
| Interim Report January–March | 7 May |
| Interim Report April–June | 19 July |
| Interim Report July–September | 6 November |
Annual General Meeting will be held on 26 April 2019.
Calculated as the average number of employees during the year, taking account of the percentage of full-time employment.
12-month rolling net profit/loss as a percentage of average equity.
Operating profit excluding depreciation, amortisation and impairment of noncurrent intangible assets. EBITA is the key figure and performance measure that is used for operational internal monitoring. EBITA provides an overall view of profit generated by operating activities.
EBITA as a percentage of net sales.
Earnings before interest, taxes, depreciation, and amortisation. EBITDA is a measure that the Group regards as relevant for investors who want to understand earnings generation before investments in non-current assets.
Recognised tax expense as a percentage of profit/loss before tax.
Equity attributable to equity holders of the parent company divided by the number of ordinary shares outstanding at period end.
Total exchange differences on borrowing and cash and cash equivalents in foreign currency, other financial revenue and other finance costs.
EBITA adjusted for specific costs Adjusted EBITA improves the ability to make comparisons over time by excluding items that are irregular in frequency or size.
EBITA excluding specific costs as a percentage of net sales. The adjusted EBITA margin excludes the effect of specific costs, which improves the ability to make comparisons over time by excluding items that are irregular in frequency or size.
Earnings before interest, taxes, depreciation, and amortisation, adjusted for specific costs. Improves the ability to make comparisons over time by excluding items that are irregular in frequency or size.
Average net debt divided by EBITDA excluding specific costs, based on a rolling 12-month calculation.
Cash flow from operating activities for the period, divided by the number of shares at period end.
12-month EBITDA +/- change in working capital and investment in machinery and equipment in relation to 12-month EBIT (operating profit/loss). This key figure measures the percentage of profit that is converted into cash flow. The purpose is to analyse what percentage of earnings can be converted into cash and cash equivalents and, in the longer term, the opportunity for investments, acquisitions and dividends, with the exception of interest-related cash flows.
Net sales are recognised in accordance with the principle of percentage-ofcompletion method. These revenues are recognised in proportion to the degree of completion of projects.
Average net debt divided by EBITDA excluding specific costs, based on a rolling 12-month calculation.
Interest-bearing liabilities, excluding pension liabilities, less cash and cash equivalents. This key figure is a measure to show the Group's total interest-bearing debt.
The change in sales adjusted for currency effects, as well as acquisitions and disposals compared with the same period last year.
Operating profit/loss adjusted for noncash items, investments in machinery and equipment and changes in working capital.
The value of new projects and contracts received, and changes in existing projects and contracts over the period in question. Includes both installation and service business.
The value of remaining, not yet accrued project revenues from orders on hand at the end of the period. Order backlog does not include service operations, only installation projects.
Profit/loss for the period attributable to owners of the parent company divided by the average number of outstanding ordinary shares after dilution.
Profit/loss for the period attributable to owners of the parent company divided by the average number of outstanding ordinary shares.
Profit/loss after financial items plus interest expense, divided by interest expense. This key figure is a measure of how much earnings may fall by without interest payments being jeopardised or how much interest on borrowing may increase without operating profit turning negative.
Total current assets, excluding cash and cash equivalents, minus current liabilities excluding current provisions and borrowing. This measure shows how much working capital is tied up in the business and may be set in relation to sales to understand how efficiently tied-up working capital is being used.
Operating profit/loss as a percentage of net sales.
Earnings before financial items and taxes.
Equity including non-controlling interests as a percentage of total assets.
Transactions and items that are irregular in occurrence and size and consequently have an impact on earnings and key figures.
*See page 15 for reconciliation of 'alternative performance measures' used by Bravida. As of 1 January 2018, Bravida has opted to report and monitor EBITA and EBITA margin, as well as adjusted EBITA and adjusted EBITA margin. It has done so to reflect internal monitoring. These key figures consequently replace operating margin, and adjusted operating profit and adjusted operating margin.
The installation and refurbishment of technical systems in properties, facilities and infrastructure.
Operation and maintenance, as well as minor refurbishment of installations in buildings and facilities.
Power supply, lighting, heating, automatic control and surveillance systems. Telecom and other lowvoltage installations. Fire and intruder alarm products and systems, access control systems, CCTV and integrated security systems.
Comfort ventilation and comfort cooling through air treatment, air conditioning and climate control. Commercial cooling in freezer and cold rooms. Process ventilation control systems. Energy audits and energy efficiency through heat recovery ventilation, heat pumps, etc.
Water, waste water, heating, sanitation, cooling and sprinkler systems. District heating and cooling. Industrial piping with expertise in all types of pipe welding. Energy saving through integrated energy systems.
Principally relates to other areas of technology such as security, cooling, sprinklers, technical service management and power.
Bravida brings buildings to life – 24 hours a day, 365 days a year. We work primarily with electricity, heating & plumbing, and HVAC, and we offer services in security, sprinklers, cooling, power, lifts, project management and technical service management. After every service or installation assignment we want properties and systems to work a little better and be more energy-efficient and for those people that live or work there to feel safe and healthy. In other words, we bring buildings to life.
We offer technical end-to-end solutions over the life of a property, from consulting and design to installation and service.
We are a large company with a local presence across the Nordics. We meet customers locally and take long-term responsibility for our work.
Our employees are our most important resource. With shared values, working methods and tools, together we create a sustainable and profitable business for us and our customers.
Bravida is the best in the Nordics at providing sustainable service and installation of the functions that bring buildings to life. We are the first choice for customers and the most attractive employer in the industry.
We manage our business according to a number of key goals that reflect our aims regarding growth, stability and leadership in the sector.
Our corporate culture and way of working make us unique in the market
Our approach is based on an important principle: each local branch is responsible for its own earnings. Branch managers are responsible for creating, together with their employees, a successful business with stable profitability, growth and good local market relations. It's the combined commitment of the branches and employees that drive Bravida forward.
Together, the branches create economies of scale, supported by Bravida's shared tools and working methods. Employees are responsible for continually making use of these. Regular follow-ups together help us create the stable profitability that is distinctive for our organisation. The business is supported by central Group departments.
We have established shared best-practice working methods. We aim to constantly improve and simplify the way we operate. Our working model, which is designed to create constant improvement, helps local branches continually share experiences and learn from each other.
Bravida's objective is to be the largest or second-largest player in all the locations where we choose to operate. We aim to grow both organically and via acquisitions in our various key geographical markets. To ensure long-term stable growth, we are increasing our focus on service and proactive sales.
Focus on growth in service and proactive sales
Focus on end-to-end solutions and packaged solutions
Greater cooperation between branches
Maintaining good financial stability is essential to Bravida. Margin always takes precedence over volume in our operations, cost-effectiveness is a cornerstone of our business and we continually endeavour to maintain stable cash flow.
Long-term efforts to maintain strong cash flow and a healthy capital structure.
Continual monitoring Continual monitoring of cash flow at all levels of the company.
Acquisitions should contribute at least one of the following:
Growth, but not at any price. We only take on assignments with a healthy margin and calculable risks.
Continual financial monitoring at all levels of the company.
Bravida aims to operate a responsible business and manage its own and others' resources efficiently. We take focused measures to achieve clear results in our sustainability work.
Greater efficiency in our own operations and resource usage.
Cooperation with customers to reduce energy and resource consumption in their properties and facilities.
Sustainability impact assessment of installation products.
Active health and safety work Employee safety, and physical and mental health.
Focus on leadership
Internal culture Active measures to maintain a healthy corporate culture with good values.
Suppliers
Continual sustainability assessment of suppliers.
Bravida Holding AB 126 81 Stockholm Sweden Street address: Mikrofonvägen 28 Telephone: +46 8 695 20 00 www.bravida.se
Bravida Norge AS Postboks 313 Økern 0511 Oslo Norway Street address: Østre Aker vei 90 Telephone: +47 2404 80 00 www.bravida.no
Bravida Danmark A/S Park Allé 373 2605 Brøndby Denmark Telephone: +45 4322 1100 www.bravida.dk
Bravida Finland Oy Ajomiehentie 1 00390 Helsinki Finland Telephone: +358 10 238 8000 www.bravida.fi
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