Quarterly Report • Oct 27, 2015
Quarterly Report
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The third quarter of the year was a different quarter compared to previous years. The quarter was off to a weak start in July, particularly in Sweden, but a hesitant market was also seen in several other countries. In Sweden, this was supported by the Swedish National Institute of Economic Research's confidence indicator for the Swedish construction sector which showed a clear but brief decline during the summer. However, during the second half of the quarter, growth was strong and in September record sales were achieved in Sweden, Ireland and Norway. Operating profit for Products & Solutions increased for the eighth consecutive quarter compared to the same quarter of the previous year, and growth was 11 percent. We also saw a gradual recovery of the gross margin towards the end of the quarter.
The buildings of the future will require efficient ventilation in order to meet higher energy efficiency requirements. Our strategy to offer complete solutions for this purpose requires both an efficient and well developed distribution. Our strategic focus area "Solutions" has seen an increase in sales of more than 30 percent during the past twelve months, a third of which is organic growth, with sales of just over SEK 1 bn over the past year. Sales and margins within our total ventilation and indoor climate business are now at the highest levels since 2008.
The newly acquired companies complete Lindab's offering. We are especially pleased that Lindab IMP Klima is already seeing positive effects with regard to sales in the form of project business and improved profits. However, the operating margin for Products & Solutions continues to be negatively affected by our acquisitions which will gradually change. When adjusted for acquisitions, the operating margin was in fact strengthened during the quarter.
Within Products & Solutions we are also seeing continued pressurised gross margins, primarily within building solutions, but also within different types of roof and wall cladding. In order to increase general profitability, we are working hard to improve the internal efficiency of our supply chain and develop the product portfolio as well as a number of other strategic activities. The Group's purchasing structure developed positively, and going forward we see a great potential within this area.
Building Systems reports a loss of SEK 4 m for the quarter and is still severely affected by the weak markets in Russia and other CIS countries. The focus on market diversification is paying off, notably in the form of two considerable orders in Africa to be delivered during 2016. The order intake for the quarter increased by 30 percent. Considering the development in Building Systems, it is positive that we are still able to deliver an improved after-tax result for the Group.
Anders Berg, Grevie, October 2015
Sales revenue during the third quarter improved to SEK 2,008 m (1,904), which is an increase of 5 percent compared with the third quarter of the previous year. Adjusted for currency and structure, the change was –1 percent. The acquisitions (structure) have contributed by 5 percent.
Sales revenue during the period January-September improved to SEK 5,609 m (5,167), which is an increase of 9 percent compared with the corresponding period of the previous year. Adjusted for currency and structure, the improvement was 2 percent.
Operating profit (EBIT) for the third quarter amounted to SEK 175 m (210), excluding one-off items of SEK 30 m (–5), see Note 7. The operating margin (EBIT), excluding one-off items, amounted to 8.7 percent (11.0).
The lower operating profit in the quarter compared with the corresponding period of the previous year is largely explained by a continued deterioration in the profit trend for Building Systems. Operating profit (EBIT), excluding one-off items, for Products & Solutions improved to SEK 186 m (174), while the operating profit (EBIT) for Building Systems fell to SEK –4 m (35).
The quarter includes one-off items of net SEK 30 m (–5), mainly consisting of negative goodwill amounting to SEK 34 m which is recognised under other operating income.
The after-tax result amounted to SEK 146 m (145), and earnings per share amounted to SEK 1.91 (1.90)
Operating profit (EBIT), excluding one-off items, for the period
January-September amounted to SEK 339 m, which is a decrease of 14 percent compared with the previous year's result of SEK 395 m. The operating margin (EBIT), excluding one-off items, for the same period amounted to 6.0 percent (7.6).
The after-tax result amounted to SEK 242 m (241), and earnings per share amounted to SEK 3.17 (3.16).
Lindab's business is affected by seasonal variations in the construction industry, and the greatest proportion of sales is normally seen during the second half of the year.
There is normally a deliberate stock build-up of mainly finished goods during the first six months, which gradually becomes a stock reduction during the second half of the year as a result of increased activity within the construction market.
The depreciation for the quarter is in line with the previous year and amounted to SEK 44 m (39), of which SEK 1 m (–) was amortisation of consolidated surplus value on intangible assets. The depreciation for the period January-September amounted to SEK 125 m (118), of which SEK 2 m was amortisation of consolidated surplus value on intangible assets.
Tax expenses for the quarter amounted to SEK 49 m (48). The pre-tax result amounted to SEK 195 m (193). The effective tax rate was 25 percent (25). The average tax rate was 20 percent (20).
Tax expenses for the period January-September amounted to SEK 98 m (82). The pre-tax result amounted to SEK 340 m (323). The effective tax rate was 29 percent (25). The average tax rate was 19 percent (20). The higher effective tax rate is mainly due to not being able to recognise tax loss carry-forwards in certain companies. At the same time, the effective tax rate was positively affected by the recognition of tax loss carry-forwards in Germany in the first quarter.
Cash flow from operating activities for the third quarter amounted to SEK 117 m compared with SEK 153 m in the same period the previous year.
The change in cash flow is primarily attributable to a lower cash flow from operating activities before change in working capital of SEK 155 m (207). Reversed items not affecting cash flow amount to SEK –11 m (31) and are mainly affected by recognised negative goodwill resulting from the acquisition of IMP Klima and capital gains concerning the divestment of Lindab Inc. Tax paid has also affected cash flow negatively by SEK –28 m compared
Nordic region Western Europe CEE/CIS Other market
with SEK –17 m for the corresponding period of the previous year.
The change in the cash flow from operating activities is also attributable to the development in working capital of SEK –38 m (–54). The change in stock improved to SEK 23 m (–53), which is attributable to activities to increase the stock turnover rate. The change in operating receivables amounted to SEK –127 m (–89) which primarily concerns accounts receivables resulting from increased sales. The change in operating liabilities amounted to SEK 66 m (88).
For the period January-September, cash flow from operating activities amounted to SEK 194 m (15).
Cash flow from investing activities is explained under the headings "Investments" and "Business combinations".
Financing activities for the quarter resulted in a cash flow of SEK –106 m (–143).
Financing activities for the period January-September resulted in a cash flow of SEK 64 m (192). The larger change in borrowing in the previous year is explained by the comparatively low cash flow from operating activities. In addition, cash flow for the year was affected by dividends paid of SEK –84 m (–).
Investments in intangible and tangible fixed assets amounted to SEK 44 m (30) for the quarter. The increase is mainly due to the acquisition of a property in Germany previously operationally leased. Disposals amounted to SEK 16 m (2). The change in financial fixed assets amounted to SEK –1 m (–). Net cash flow from investing activities amounted to SEK –27 m (–28), excluding business combinations.
For the period January-September, investments in fixed assets amounted to SEK –106 m (–228), while disposals amounted to SEK 23 m (3). The change is mainly due to the previous year's acquisition of a property in the Czech Republic previously operationally leased. The change in financial fixed assets amounted to SEK 1 m (–). Net cash flow from investing activities amounted to SEK –84 m (–225), excluding business combinations.
On 7 August, the US subsidiary Lindab Inc. was divested. The business covers production and sale of ventilation ducts and components, mainly in the eastern regions of the USA. The company, based in Portsmouth, Virginia, has operated as an independent unit on the US market and will continue to distribute Lindab's products. In 2014, the company had a turnover of just under SEK 150 m and 98 employees.
On 1 July, the assets of the French company Froid Partn'Air were
acquired. The business covers distribution of ventilation and indoor climate products in the region around Marseille in France. The company has annual revenue of around SEK 13 m and five employees. The acquisition strengthens Lindab's presence and distribution in this area which is the third most populous area in France.
On 3 June, the French company Nather S.A. was acquired. The business mainly covers products and solutions for residential ventilation. The company has annual sales of approximately SEK 45 m and 17 employees. The company's sales are mainly in France, and the acquisition is expected to produce synergies primarily within sales and purchasing. The acquisition strengthens Lindab's market position in the form of complete residential ventilation solutions in the French and nearby markets.
In May, an agreement was concluded on the acquisition of the Slovenian ventilation company IMP Klima which was completed on 1 July. The business comprises products and solutions for ventilation and indoor climate with cutting-edge expertise within air handling units and fans. IMP Klima has its registered office and main business in Godovic, Slovenia. The company has turnover of around SEK 230 m with an operating profit (EBIT) of approximately SEK 1 m for the past twelve months until June 2015 and about 360 employees. The acquisition is a strategic step for Lindab towards developing its position as a complete supplier of ventilation and indoor climate solutions.
The agreement on the acquisition of MP3, which was concluded in December 2014, was completed during the first quarter. MP3 is a leading manufacturer of indoor climate solutions, with specialist knowledge in smoke and fire protection. MP3 has its registered office in Padua in Northern Italy, has annual sales of approximately SEK 210 m, with an operating profit (EBIT) of around SEK 20 m, and 95 employees. MP3 is integrated into Lindab's business, which means synergy gains, mainly in sales, but also in terms of costs.
All the acquisitions are in line with Lindab's ambition to strengthen its position as a supplier of complete ventilation solutions and to increase its market coverage.
For more information, see Note 3.
Net debt amounted to SEK 1,922 m (1,883) on 30 September 2015. Currency fluctuations have only had a marginal impact on net debt since the beginning of the year. The equity/assets ratio amounted to 46 percent (45) and the net debt/equity ratio amounted to 0.5 (0.6). Financial items for the period improved to SEK –10 m (–12).
The current credit limit of SEK 1,600 m with Nordea/SEB was extended at the beginning of January 2015 and now runs until the first quarter of 2018. The credit limit of SEK 500 m with Svensk
Exportkredit remains unchanged and runs until the first quarter of 2019.
For the period January-September, financial items amounted to SEK –29 m (–63). This positive development is explained by better terms and a lower credit limit in the new credit agreement which was signed in February 2014. The corresponding period of the previous year was affected by previously accrued charges attributable to the previous credit agreement.
There have not been any significant changes to pledged assets and contingent liabilities in 2015.
Sales revenue for the quarter amounted to SEK 0 m (1). The after-tax result amounted to SEK –7 m (–8).
Sales revenue for the period January-September amounted to SEK 2 m (2). The after-tax result for the period amounted to SEK –19 m (–32).
There have been no significant changes to what was stated by Lindab in its Annual Report for 2014 under Risks and Risk Management (pages 57-60).
The number of employees at the end of the quarter, converted to equivalent full-time employees, was 5,109 (4,470). Adjusted for acquisitions and divestments, the net increase in the number of employees was 287 compared with the corresponding quarter of last year, which is mainly explained by higher production volumes.
Kristian Ackeby has been appointed new CFO and will take up the post on 1 December 2015.
The Board has decided that the Annual General Meeting will be held on 3 May 2016. Notice to attend the meeting will be sent out in due order.
The highest price paid for Lindab shares during the period January-September was SEK 78.35 on 17 April, and the lowest was SEK 55.95 on 24 August. The closing price on 30 September was SEK 62.05. The average daily trading volume of the Lindab share was 184,168 shares per day (264,695).
Lindab holds 2,375,838 treasury shares (2,375,838), equivalent to 3.0 percent (3.0) of the total number of Lindab shares. The number of outstanding shares totals 76,331,982 (76,331,982), while the total number of shares is 78,707,820 (78,707,820).
The largest shareholders at the end of the quarter in relation to the number of outstanding shares were Creades AB with 10.3 percent (10.3), Lannebo Fonder with 8.0 percent (8.7), Fjärde APfonden with 7.8 percent (*), AFA Försäkring with 6.3 percent (1.8) and Handelsbanken Fonder with 6.2 percent (6.3). The ten largest holdings constitute 59.4 percent (56.4) of the shares, excluding Lindab's own holding.
*Not among the 20 largest shareholders in the corresponding quarter 2014.
From the incentive programme LTIP 2012-2015 resolved by the Annual General Meeting, only matching shares consisting of one share for each share held at the end of May 2015 were allocated and the allocation is predicated on continued employment at that point in time. In total, 46,057 shares were allocated.
No performance shares were allocated, as the set targets were not met.
No events to report.
See Note 1.
Unless otherwise specified in this Interim Report, all statements refer to the Group. Figures in parentheses indicate the outcome for the corresponding period of the previous year. A compilation of key performance indicators can be found on pages 13-14.
One-off items are specified in Note 7.
Sales revenue for Products & Solutions increased by 11 percent during the third quarter compared with the corresponding period of the previous year, and improved to SEK 1,802 m (1,627). Adjusted for currency and structure, sales revenue increased by 2 percent. Acquisitions and divestments have contributed by 6 percent. For the eighth quarter in a row, organic sales increased compared with the corresponding quarter of the previous year.
Adjusted for currency and structure, the growth rate has declined somewhat. The Nordic region continues to show signs of good growth, while sales declined somewhat in Western Europe and were negative in CEE/CIS compared with the same quarter of the previous year.
In the Nordic region, which is the segment's largest region, all markets are showing strong growth, with Sweden, the largest market, recording the highest ever sales during the third quarter. In Western Europe, the UK, the largest market of the region, shows an unchanged sales development, while France continues to show a negative sales development. One of the markets in this region, Ireland, also recorded the highest ever sales during the third quarter. In CEE/CIS where the sales development has been negative, most of the decline is explained by a large export project in Azerbaijan during the comparable period of 2014.
All product areas show growth, except Rainwater & Building Products. Building Solutions showed a strong sales development during the quarter, and sales of Indoor Climate Solutions also continue to develop strongly.
Sales revenue for the period January-September increased by 12 percent to SEK 5,029 m (4,497), an increase of 3 percent when adjusted for currency and structure.
Nordic region Western Europe CEE/CIS Other market
The operating profit (EBIT) for Products & Solutions for the third quarter, excluding one-off items, improved to SEK 186 m (174). This was the eighth quarter in a row with increased operating profit. The operating margin (EBIT) amounted to 10.3 percent (10.7). Including one-off items, operating profit (EBIT) increased to SEK 229 m (169).
Adjusted for structural changes, Products & Solutions' operating margin increased compared to the corresponding period of the previous year. The improvement in operating profit in the quarter is explained by a higher volume and lower costs, while the gross margin was somewhat lower than in the previous year. Activities have been launched to improve the gross margins going forward.
Operating profit (EBIT) for the period January-September, excluding one-off items, improved to SEK 391 m (365).
The strategic focus on complete ventilation solutions is a success, but there is still work to be done in order to be a complete supplier in all markets. The new acquisitions with specialist expertise in air handling units, fire safety and residential ventilation strengthen Lindab's offering, and intense knowledge sharing is taking place to create a market-adapted offering and boost sales. Smoke and fire protection solutions from the Italian company MP3 are now being sold in eight markets.
The strategy is about choice and focus, and the divestment of Lindab Inc. within Products & Solutions during the quarter is part of this strategy. At the same time, the distribution was strengthened through the acquisition of a well-established branch in Marseille, France, and the opening of a new branch in Aberdeen, Scotland.
Developing the solutions of tomorrow requires long-term innovation. A strategic function focusing on energy efficiency has been established for cross-product area work. The newly acquired companies contribute to a strong platform for R&D within important areas of expertise, including cleanroom technology, smoke and fire safety.
Comprehensive actions to optimise the Group's product portfolio in order to improve profitability has been initiated. At the same time, the internal efficiency efforts have been strengthened with the introduction of lean processes in all production units and reduction of stock levels. During the quarter, a decision was made to invest in increased automation of the large production unit in Karlovarska, Czech Republic.
The internal review of fraudulent activities in the Hungarian business unit is still ongoing.
Sales revenue for Building Systems decreased by 26 percent to SEK 206 m (277) during the third quarter. Adjusted for currency and structure, sales decreased by 20 percent.
The negative sales trend, adjusted for currency is mainly explained by reduced sales to Russia which has now been surpassed by Germany as Building Systems' largest market. Sales also decreased in Western Europe, with Germany seeing somewhat reduced sales. However, the order intake in Germany increased during the quarter – the highest in the quarter since 2008. In CEE, sales increased due to strong growth in the third largest market, Poland. The total order intake grew during the quarter, and order volumes are higher than in the corresponding period of the previous year.
Sales revenue for the period January-September decreased by 13 percent to SEK 580 m (670), a decrease of 6 percent when adjusted for currency and structure.
Nordic Region Western Europe CEE/CIS Other Markets
The operating profit (EBIT) for Building Systems for the quarter, excluding one-off items, amounted to SEK –4 m (35). The operating margin (EBIT) amounted to –1.9 percent (12.6) during the quarter.
The lower sales during the quarter compared to the previous year, –26 percent, is the main explanation for the decline in operating profit. The market mix with a lower share of sales to Russia and CIS and a general price pressure have also negatively affected the gross margin and profit. For several years now, profitability for Building Systems has had a large exposure to Russia, and also to CIS. The continued uncertainty in these countries has a clearly negative impact on the profit.
Operating profit (EBIT) for the period January-September, excluding one-off items, amounted to SEK –12 m (48).
Four large orders have been received in Russia, Nigeria and the Ivory Coast, each to values exceeding SEK 10 m.
Market activities under the Astron brand continue in order to diversify exposure and have already yielded good results in both Western Europe and Africa. In Europe, targeted campaigns have been carried out for multi-storey car parks and sports facilities. The campaign for sports facilities was also carried out in Russia where a large order for a sports arena was received during the quarter.
| Jul-Sep Jul-Sep |
Jan-Sep | Jan-Sep | Jan-Dec | ||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2014 | |
| Sales revenue, SEK m | 2,008 | 1,904 | 5,609 | 5,167 | 7,003 |
| Change, SEK m | 104 | 151 | 442 | 430 | 480 |
| Change, % | 5 | 9 | 9 | 9 | 7 |
| Of w hich |
|||||
| Volumes and prices, % | - 1 |
5 | 2 | 6 | 5 |
| Acquisitions/divestments, % | 5 | 0 | 4 | 0 | 0 |
| Currency effects, % | 1 | 4 | 3 | 3 | 2 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2015 | % | 2014 | % | 2015 | % | 2014 | % | 2014 | % |
| Nordic region | 888 | 44 | 821 | 43 | 2,506 | 45 | 2,351 | 45 | 3,208 | 46 |
| Western Europe | 662 | 33 | 590 | 31 | 1,849 | 33 | 1,589 | 31 | 2,106 | 30 |
| CEE/CIS | 400 | 20 | 432 | 23 | 1,054 | 19 | 1,076 | 21 | 1,479 | 21 |
| Other markets | 58 | 3 | 61 | 3 | 200 | 3 | 151 | 3 | 210 | 3 |
| Total | 2,008 | 100 | 1,904 | 100 | 5,609 100 | 5,167 100 | 7,003 | 100 |
| Jul-Sep Jul-Sep Jan-Sep |
Jan-Sep | Jan-Dec | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2015 | % | 2014 | % | 2015 | % | 2014 | % | 2014 | % |
| Products & Solutions | 1,802 | 90 | 1,627 | 85 | 5,029 | 90 | 4,497 | 87 | 6,084 | 87 |
| Building Systems | 206 | 10 | 277 | 15 | 580 | 10 | 670 | 13 | 919 | 13 |
| Other operations | - | - | - | - | - | - | - | - | - | - |
| Total | 2,008 | 100 | 1,904 | 100 | 5,609 100 | 5,167 100 | 7,003 | 100 | ||
| Gross internal sales all segments | 0 | 0 | 0 | 0 | 1 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2015 | % | 2014 | % | 2015 | % | 2014 | % | 2014 | % |
| Products & Solutions | 186 10.3 | 174 10.7 | 391 | 7.8 | 365 | 8.1 | 471 | 7.7 | ||
| Building Systems | - 4 |
-1.9 | 35 12.6 | -12 -2.1 | 48 | 7.2 | 52 | 5.7 | ||
| Other operations | - 7 |
- | 1 | - | -40 | - | -18 | - | -26 | - |
| Total (EBIT), excluding one-off items | 175 | 8.7 | 210 11.0 | 339 | 6.0 | 395 | 7.6 | 497 | 7.1 | |
| One-off items* | 30 | - | - 5 |
- | 30 | - | - 9 |
- | -30 | - |
| Total (EBIT), including one-off items* | 205 10.2 | 205 10.8 | 369 | 6.6 | 386 | 7.5 | 467 | 6.7 | ||
| Net financial income | -10 | - | -12 | - | -29 | - | -63 | - | -81 | - |
| Result before tax (EBT) | 195 | - | 193 | - | 340 | - | 323 | - | 386 | - |
*) One-off items are described in Note 7.
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | |
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2014 | |
| Products & Solutions | 4,350 | 3,712 | 4,350 | 3,712 | 3,830 |
| Building Systems | 705 | 709 | 705 | 709 | 709 |
| Other operations | 54 | 49 | 54 | 49 | 48 |
| Total | 5,109 | 4,470 | 5,109 | 4,470 | 4,587 |
(Income statement)
| Rolling 12 M | Rolling 12 M | ||||||
|---|---|---|---|---|---|---|---|
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct 2014- | Oct 2013- | Jan-Dec | |
| Amounts in SEK m | 2015 | 2014 | 2015 | 2014 | Sep 2015 | Sep 2014 | 2014 |
| Sales revenue | 2,008 | 1,904 | 5,609 | 5,167 | 7,445 | 6,954 | 7,003 |
| Cost of goods sold | -1,449 | -1,343 | -4,083 | -3,693 | -5,420 | -4,961 | -5,030 |
| Gross profit | 559 | 561 | 1,526 | 1,474 | 2,025 | 1,993 | 1,973 |
| Other operating income | 60 | 18 | 105 | 45 | 123 | 100 | 63 |
| Selling expenses | -246 | -237 | -759 | -706 | -1,005 | -962 | -952 |
| Administrative expenses | -127 | -105 | -390 | -336 | -511 | -449 | -457 |
| R & D expenses | -15 | -11 | -41 | -37 | -55 | -49 | -51 |
| Other operating expenses | -26 | -21 | -72 | -54 | -127 | -93 | -109 |
| Total operating expenses | -354 | -356 | -1,157 | -1,088 | -1,575 | -1,453 | -1,506 |
| Operating profit (EBIT)* | 205 | 205 | 369 | 386 | 450 | 540 | 467 |
| Interest income | 4 | 2 | 13 | 5 | 15 | 10 | 7 |
| Interest expenses | -14 | -14 | -38 | -66 | -51 | -95 | -79 |
| Other financial income and expenses | 0 | 0 | - 4 |
- 2 |
-11 | - 6 |
- 9 |
| Net financial items | -10 | -12 | -29 | -63 | -47 | -91 | -81 |
| Result before tax (EBT) | 195 | 193 | 340 | 323 | 403 | 449 | 386 |
| Tax on profit for the period | -49 | -48 | -98 | -82 | -119 | -109 | -103 |
| Profit for the period | 146 | 145 | 242 | 241 | 284 | 340 | 283 |
| –attributable to the parent company's shareholders | 146 | 145 | 242 | 241 | 284 | 340 | 283 |
| –attributable to non-controlling interest | 0 | - | 0 | - | 0 | - | - |
| Other comprehensive income | |||||||
| Items that will not be reclassified to the income statement | |||||||
| Actuarial gains/losses, defined benefit plans | 0 | 0 | 0 | - 7 |
-22 | 11 | -29 |
| Deferred tax attributable to defined benefit plans | 0 | 0 | 0 | 1 | 5 | - 2 |
6 |
| 0 | 0 | 0 | - 6 |
-17 | 9 | -23 | |
| Items that can later be reclassified to the income statement | |||||||
| Translation differences, foreign operations | 7 | - 4 |
16 | 122 | 57 | 213 | 163 |
| Hedging of net investments | -16 | 1 | - 2 |
-30 | -45 | -48 | -73 |
| Tax attributable to hedging of net investments | 3 | 0 | 0 | 6 | 10 | 10 | 16 |
| - 6 |
- 3 |
14 | 98 | 22 | 175 | 106 | |
| Other comprehensive income, net of tax | - 6 |
- 3 |
14 | 92 | 5 | 184 | 83 |
| Total comprehensive income | 140 | 142 | 256 | 333 | 289 | 524 | 366 |
| –attributable to the parent company's shareholders | 140 | 142 | 256 | 333 | 289 | 524 | 366 |
| –attributable to non-controlling interest | 0 | - | 0 | - | 0 | - | - |
| Earnings per share, SEK** | |||||||
| Undiluted | 1.91 | 1.90 | 3.17 | 3.16 | 3.72 | 4.45 | 3.71 |
| Diluted | 1.91 | 1.90 | 3.17 | 3.16 | 3.72 | 4.45 | 3.71 |
*) One-off items, which are included in other operating income/other operating expenses, are described in Note 7.
**) Based on the number of outstanding shares, i.e excluding treasury shares.
(Indirect method)
| Rolling 12 M | Rolling 12 M | ||||||
|---|---|---|---|---|---|---|---|
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Oct 2014- | Oct 2013- | Jan-Dec | |
| Amounts in SEK m | 2015 | 2014 | 2015 | 2014 | Sep 2015 | Sep 2014 | 2014 |
| Operating activities | |||||||
| Operating profit | 205 | 205 | 369 | 386 | 450 | 540 | 467 |
| Reversal of depreciation/amortisation | 44 | 39 | 125 | 118 | 165 | 158 | 158 |
| Reversal of capital gains (–) / losses (+) reported in operating profit | -11 | 0 | -13 | 0 | -10 | 2 | 3 |
| Provisions, not affecting cash flow | 1 | -13 | -17 | -45 | -14 | -83 | -42 |
| Adjustment for other items not affecting cash flow | -45 | 5 | -28 | 1 | -49 | 14 | -20 |
| Total | 194 | 236 | 436 | 460 | 542 | 631 | 566 |
| Interest received | 3 | 2 | 13 | 5 | 15 | 10 | 7 |
| Interest paid | -14 | -14 | -37 | -50 | -49 | -74 | -62 |
| Tax paid | -28 | -17 | -78 | -68 | -82 | -88 | -72 |
| Cash flow from operating activities before | |||||||
| change in working capital | 155 | 207 | 334 | 347 | 426 | 479 | 439 |
| Change in working capital | |||||||
| Stock (increase – /decrease +) | 23 | -53 | 9 | -208 | 106 | -67 | -111 |
| Operating receivables (increase – /decrease +) | -127 | -89 | -348 | -318 | -106 | -69 | -76 |
| Operating liabilities (increase + /decrease –) | 66 | 88 | 199 | 194 | 31 | 127 | 26 |
| Total change in working capital | -38 | -54 | -140 | -332 | 31 | - 9 |
-161 |
| Cash flow from operating activities | 117 | 153 | 194 | 15 | 457 | 470 | 278 |
| Investing activities | |||||||
| Acquisition of Group companies | -109 | - 4 |
-261 | -20 | -271 | -26 | -30 |
| Divestment of Group companies | 88 | - | 88 | - | 88 | - | - |
| Investments in intangible fixed assets | - 7 |
- 6 |
-16 | -19 | -22 | -26 | -25 |
| Investments in tangible fixed assets | -37 | -24 | -90 | -209 | -129 | -231 | -248 |
| Change in financial fixed assets | 1 | 0 | - 1 |
0 | - 1 |
- 2 |
0 |
| Sale of intangible fixed assets | - 3 |
0 | 1 | 0 | 1 | 0 | 0 |
| Sale of tangible fixed assets | 19 | 2 | 22 | 3 | 30 | 5 | 11 |
| Cash flow from investing activities | -48 | -32 | -257 | -245 | -304 | -280 | -292 |
| Financing activities | |||||||
| Proceeds from borrow ings |
- | 1,764 | 150 | 2,101 | - | 2,101 | 1,885 |
| Repayment of borrow ings |
-106 | -1,907 | - | -1,907 | -66 | -2,219 | -1,907 |
| Sale of treasury shares | 0 | 0 | - 2 |
- 2 |
- 2 |
- 2 |
- 2 |
| Dividends to shareholders | - | - | -84 | - | -84 | - | - |
| Cash flow from financing activities | -106 | -143 | 64 | 192 | -152 | -120 | -24 |
| Cash flow for the period | -37 | -22 | 1 | -38 | 1 | 70 | -38 |
| Cash and cash equivalents at start of the period | 336 | 325 | 300 | 331 | 301 | 215 | 331 |
| Effect of exchange rate changes on cash and cash equivalents | 2 | - 2 |
0 | 8 | - 1 |
16 | 7 |
| Cash and cash equivalents at end of the period | 301 | 301 | 301 | 301 | 301 | 301 | 300 |
(Condensed Balance sheet)
| Amounts SEK m | 30 Sep 2015 30 Sep 2014 31 Dec 2014 | ||
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Goodw ill |
2,957 | 2,804 | 2,859 |
| Other intangible fixed assets | 131 | 62 | 64 |
| Tangible fixed assets | 1,353 | 1,264 | 1,240 |
| Financial fixed assets, interest bearing | 46 | 41 | 46 |
| Other financial fixed assets | 112 | 148 | 132 |
| Total fixed assets | 4,599 | 4,319 | 4,341 |
| Current assets | |||
| Stock | 1,150 | 1,196 | 1,107 |
| Accounts receivable | 1,467 | 1,276 | 1,064 |
| Other current assets | 212 | 207 | 147 |
| Other receivables, interest bearing | 12 | 2 | 2 |
| Cash and bank | 301 | 301 | 300 |
| Total current assets | 3,142 | 2,982 | 2,620 |
| TOTAL ASSETS | 7,741 | 7,301 | 6,961 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 3,539 | 3,311 | 3,344 |
| Long-term liabilities | |||
| Provisions, interest-bearing | 209 | 178 | 201 |
| Liabilities, interest-bearing | 1,889 | 1,948 | 1,765 |
| Provisions | 129 | 150 | 111 |
| Other long-term liabilities | 9 | 5 | 5 |
| Total long-term liabilities | 2,236 | 2,281 | 2,082 |
| Current liabilities | |||
| Other Liabilities, interest-bearing | 183 | 101 | 128 |
| Provisions | 29 | 36 | 52 |
| Accounts payable | 910 | 771 | 650 |
| Other short-term liabilities | 844 | 801 | 705 |
| Total current liabilities | 1,966 | 1,709 | 1,535 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 7,741 | 7,301 | 6,961 |
Equity relating to the parent company's shareholders
| Other | Foreign | Profit | Non | ||||
|---|---|---|---|---|---|---|---|
| Share | contribut | currency | brought | controlling | Total | ||
| Amounts in SEK m | Capital | ed capital | transl. adj. | forward | Total | interest | Equity |
| Opening balance, 1 January 2014 | 79 | 2,228 | -55 | 715 | 2,967 | - | 2,967 |
| Profit for the period | 241 | 241 | - | 241 | |||
| Other comprehensive income, net of tax | |||||||
| Actuarial gains/losses, defined benefit plans | - 6 |
- 6 |
- | - 6 |
|||
| Translation differences, foreign operations | 122 | 122 | - | 122 | |||
| Hedging of net investments | -24 | -24 | - | -24 | |||
| Total comprehensive income | - | - | 98 | 235 | 333 | - | 333 |
| Incentive programme1) | 0 | 0 | - | 0 | |||
| Maturity of futures contracts to acquire treasury | |||||||
| shares, incentive programme | 11 | 11 | - | 11 | |||
| Effect unused shares, incentive programme | 2 | 2 | - | 2 | |||
| Shares to be allocated, incentive programme | - 2 |
- 2 |
- | - 2 |
|||
| Closing balance, 30 September 2014 | 79 | 2,239 | 43 | 950 | 3,311 | - | 3,311 |
| Profit for the period | 42 | 42 | - | 42 | |||
| Other comprehensive income, net of tax | |||||||
| Actuarial gains/losses, defined benefit plans | -17 | -17 | - | -17 | |||
| Translation differences, foreign operations | 41 | 41 | - | 41 | |||
| Hedging of net investments | -33 | -33 | - | -33 | |||
| Total comprehensive income | - | - | 8 | 25 | 33 | - | 33 |
| Incentive programme1) | 0 | 0 | - | 0 | |||
| Maturity of futures contracts to acquire treasury shares, incentive programme |
0 | 0 | - | 0 | |||
| Effect unused shares, incentive programme | |||||||
| 0 | 0 | - | 0 | ||||
| Shares to be allocated, incentive programme | 0 | 0 | - | 0 | |||
| Closing balance, 31 December 2014 | 79 | 2,239 | 51 | 975 | 3,344 | - | 3,344 |
| Opening balance, 1 January 2015 | 79 | 2,239 | 51 | 975 | 3,344 | - | 3,344 |
| Profit for the period | 242 | 242 | - | 242 | |||
| Other comprehensive income, net of tax | |||||||
| Actuarial gains/losses, defined benefit plans | - | - | - | - | |||
| Translation differences, foreign operations | 16 | 16 | - | 16 | |||
| Hedging of net investments | - 2 |
- 2 |
- | - 2 |
|||
| Total comprehensive income | - | - | 14 | 242 | 256 | - | 256 |
| Incentive programme1) | 0 | 0 | - | 0 | |||
| Maturity of futures contracts to acquire treasury shares, incentive programme |
|||||||
| 17 | 17 | - | 17 | ||||
| Effect unused shares, incentive programme | 6 | 6 | - | 6 | |||
| Shares to be allocated, incentive programme | - 2 |
- 2 |
- | - 2 |
|||
| Dividends to shareholders | -84 | -84 | - | -84 | |||
| Acquisition of non-controlling interest | 2 | 2 | |||||
| Closing balance, 30 June 2015 | 79 | 2,260 | 65 | 1,133 | 3,537 | 2 | 3,539 |
1) The 2011 and 2012 Annual General Meetings decided to introduce a long-term Incentive programme for each year. To ensure that Lindab holds shares for the maximum allocation, futures contracts have been signed with third parties to acquire treasury shares, meaning that no dilution occurs. The incentive programme initiated during 2011 fell due in 2013 and was paid out during the second quarter of 2014. The incentive programme initiated during 2012 fell due in 2014 and was paid out in June 2015.
The share capital of SEK 78,707,820 is divided among 78,707,820 shares with a face value of SEK 1.00. Lindab International AB (publ) holds 2,375,838 (2,375,838) treasury shares, corresponding to 3.0 percent (3.0) of the total number of Lindab shares.
In accordance with the proposal of the Board of Directors, the Annual General Meeting on 27 April 2015 resolved that dividends of SEK 1.10 per share, corresponding to SEK 84 m, would be paid for the financial year. It was resolved that the remainder of the retained earnings, SEK 513 m, should be carried forward.
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | |
|---|---|---|---|---|---|
| Amounts SEK m | 2015 | 2014 | 2015 | 2014 | 2014 |
| Sales revenue* | 0 | 1 | 2 | 2 | 3 |
| Administrative expenses | 0 | - 1 |
- 2 |
- 3 |
- 4 |
| Other operating income/costs | 0 | 0 | 0 | 0 | 0 |
| Operating profit | 0 | 0 | 0 | - 1 |
- 1 |
| Profit from subsidiaries | - | - | - | - | 49 |
| Interest expenses, internal | - 8 |
-10 | -24 | -40 | -48 |
| Result before tax | - 8 |
-10 | -24 | -41 | 0 |
| Tax on profit for the period | 1 | 2 | 5 | 9 | 1 |
| Profit for the period** | - 7 |
- 8 |
-19 | -32 | 1 |
*) Other operating income has been reclassified to Sales revenue.
**) Comprehensive income corresponds to profit for all periods.
| Amounts SEK m | 30 Sep 2015 30 Sep 2014 31 Dec 2014 | ||
|---|---|---|---|
| Assets | |||
| Fixed assets | |||
| Shares in Group companies | 3,467 | 3,467 | 3,467 |
| Financial fixed assets, interest bearing | 7 | 7 | 7 |
| Other long-term receivables | 2 | 2 | 2 |
| Total fixed assets | 3,476 | 3,476 | 3,476 |
| Current assets | |||
| Other receivables | 6 | 10 | 52 |
| Cash and bank | 0 | 1 | 0 |
| Total current assets | 6 | 11 | 52 |
| TOTAL ASSETS | 3,482 | 3,487 | 3,528 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 1,281 | 1,353 | 1,384 |
| Provisions | |||
| Provisions, interest-bearing | 7 | 7 | 8 |
| Long-term liabilities | |||
| Liabilities to Group companies, interest-bearing | 2,158 | 2,125 | 2,134 |
| Total provisions and long-term liabilities | 2,165 | 2,132 | 2,142 |
| Current liabilities | |||
| Other liabilities | 36 | 2 | 2 |
| Total current liabilities | 36 | 2 | 2 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,482 | 3,487 | 3,528 |
| Quarterly periods | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | |
| Jul | Apr | Jan | Oct | Jul | Apr | Jan | Oct | Jul | Apr | Jan | |
| SEK m unless otherwise specified | Sep | Jun | Mar | Dec | Sep | Jun | Mar | Dec | Sep | Jun | Mar |
| Sales revenue | 2,008 | 1,907 | 1,694 | 1,836 | 1,904 | 1,757 | 1,506 | 1,786 | 1,753 | 1,643 | 1,341 |
| Operating profit, (EBITDA)1) | 248 | 151 | 9 5 |
121 | 244 | 164 | 9 7 |
194 | 206 | 164 | 4 5 |
| Operating profit, (EBITA)2) | 206 | 110 | 5 5 |
8 1 |
205 | 124 | 5 7 |
154 | 165 | 126 | 7 |
| Depreciation/amortisation and w rite-dow ns |
43 | 4 2 |
4 1 |
4 0 |
39 | 4 0 |
3 9 |
4 0 |
41 | 3 8 |
3 8 |
| Operating profit, (EBIT)3) | 205 | 110 | 5 4 |
8 1 |
205 | 124 | 5 7 |
154 | 165 | 126 | 7 |
| Operating profit, (EBIT), excluding one-off items | 175 | 110 | 5 4 |
102 | 210 | 125 | 6 0 |
158 | 195 | 132 | 13 |
| After tax result | 146 | 6 8 |
2 7 |
4 2 |
145 | 8 2 |
14 | 9 9 |
101 | 6 1 |
- 28 |
| Total comprehensive income | 140 | 17 | 9 8 |
3 3 |
142 | 204 | - 12 |
191 | 73 | 204 | - 185 |
| Operating margin, (EBITA),%4) | 10.3 | 5.8 | 3.2 | 4.4 | 10.8 | 7.1 | 3.8 | 8.6 | 9.4 | 7.7 | 0.5 |
| Operating margin, (EBIT),%5) | 10.2 | 5.8 | 3.2 | 4.4 | 10.8 | 7.1 | 3.8 | 8.6 | 9.4 | 7.7 | 0.5 |
| Operating margin (EBIT), excluding one-off items, % | 8.7 | 5.8 | 3.2 | 5.6 | 11.0 | 7.1 | 4.0 | 8.8 | 11.1 | 8.0 | 1.0 |
| Undiluted average number of shares, (000's) | 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 | ||||||||||
| Diluted average number of shares, (000's)6) | 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 | ||||||||||
| Undiluted number of shares, (000's) | 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 | ||||||||||
| Diluted number of shares, (000's)6) | 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 76,332 | ||||||||||
| Undiluted earnings per share, SEK7) | 1.91 | 0.89 | 0.35 | 0.55 | 1.90 | 1.07 | 0.18 | 1.30 | 1.32 | 0.80 | - 0.37 |
| Diluted earnings per share, SEK 8) | 1.91 | 0.89 | 0.35 | 0.55 | 1.90 | 1.07 | 0.18 | 1.30 | 1.32 | 0.80 | - 0.37 |
| Cash flow from operating activities |
117 | 160 | - 83 |
263 | 153 | 8 8 |
- 226 |
455 | 136 | 2 6 |
3 |
| from operating activities per share, SEK9) Cash flow |
1.53 | 2.10 | - 1.09 |
3.45 | 2.00 | 1.15 | - 2.96 |
5.96 | 1.78 | 0.34 | 0.04 |
| Total assets | 7,741 | 7,490 | 7,472 | 6,961 | 7,301 | 7,208 | 6,770 | 6,517 | 6,726 | 6,815 | 6,589 |
| Net debt10) | 1,922 | 1,957 | 1,999 | 1,746 | 1,883 | 1,998 | 2,038 | 1,612 | 2,020 | 2,139 | 2,140 |
| Net debt/equity ratio, times11) | 0.5 | 0.6 | 0.6 | 0.5 | 0.6 | 0.6 | 0.7 | 0.5 | 0.7 | 0.8 | 0.9 |
| Equity | 3,539 | 3,397 | 3,442 | 3,344 | 3,311 | 3,169 | 2,955 | 2,967 | 2,776 | 2,703 | 2,498 |
| Undiluted equity per share, SEK12) | 46.36 | 44.50 | 45.09 | 43.81 | 43.38 | 41.52 | 38.71 | 38.87 | 36.37 | 35.41 | 32.73 |
| Diluted equity per share, SEK13) | 46.36 | 44.50 | 45.09 | 43.81 | 43.38 | 41.52 | 38.71 | 38.87 | 36.37 | 35.41 | 32.73 |
| Equity/asset ratio, %14) | 45.7 | 45.4 | 46.1 | 48.0 | 45.3 | 44.0 | 43.6 | 45.5 | 41.3 | 39.7 | 37.9 |
| Return on equity, %15) | 8.3 | 8.5 | 9.1 | 9.0 | 11.2 | 10.2 | 9.9 | 8.5 | 5.1 | 5.5 | 5.4 |
| Return on capital employed, %16) | 8.2 | 8.2 | 8.6 | 8.9 | 10.4 | 9.8 | 10.0 | 9.1 | 6.7 | 7.0 | 7.0 |
| Return on operating capital, %17) | 8.5 | 8.6 | 9.0 | 9.3 | 10.9 | 10.3 | 10.5 | 9.6 | 7.1 | 7.4 | 7.3 |
| Return on operating capital, excluding one-off items, % | 8.3 | 9.1 | 9.5 | 9.9 | 11.2 | 11.0 | 11.4 | 10.5 | 9.3 | 9.2 | 9.3 |
| Return on total assets, %18) | 6.3 | 6.3 | 6.6 | 6.8 | 8.0 | 7.5 | 7.6 | 6.9 | 5.1 | 5.2 | 5.2 |
| Interest coverage ratio, times19) | 15.0 | 11.3 | 3.3 | 4.2 | 14.8 | 8.3 | 1.5 | 4.9 | 5.5 | 3.7 | 0.3 |
| Net debt to EBITDA, excluding one-off items 20) | 3.2 | 3.1 | 3.0 | 2.9 | 2.7 | 2.8 | 2.8 | 3.1 | 3.6 | 3.7 | 3.7 |
| No. of employees at close of period21) | 5,109 | 4,977 | 4,927 | 4,587 | 4,470 | 4,666 | 4,558 | 4,371 | 4,387 | 4,368 | 4,350 |
For Definitions, see page 20.
| Quarterly periods, cont. | Year-to-date Jan-Sep | Full-year periods | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2010 | ||||||||||||
| Jul | *Jul | *Jul | ||||||||||||
| SEK m unless otherwise specified | Sep | Sep | Sep 2015 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010 | |||||||||||
| Sales revenue | 1,773 | 1,891 | 1,881 | 5,609 | 5,167 | 4,737 | 4,989 | 5,023 | 4,830 | 7,003 | 6,523 | 6,656 | 6,878 | 6,527 |
| Operating profit, (EBITDA)1) | 219 | 211 | 247 | 494 | 504 | 415 | 406 | 400 | 453 | 625 | 609 | 490 | 511 | 565 |
| Operating profit, (EBITA)2) | 183 | 172 | 206 | 371 | 386 | 298 | 294 | 283 | 325 | 467 | 452 | 334 | 348 | 401 |
| Depreciation/amortisation and w rite-dow ns |
36 | 40 | 42 | 125 | 118 | 117 | 112 | 118 | 134 | 158 | 157 | 156 | 163 | 280 |
| Operating profit, (EBIT)3) | 183 | 172 | 205 | 369 | 386 | 298 | 294 | 283 | 319 | 467 | 452 | 334 | 348 | 284 |
| Operating profit, (EBIT), excluding one-off items | 190 | 172 | 212 | 339 | 395 | 340 | 355 | 300 | 272 | 497 | 498 | 460 | 407 | 347 |
| After tax result | 110 | 88 | 114 | 242 | 241 | 134 | 120 | 96 | 113 | 283 | 233 | 122 | 91 | 27 |
| Total comprehensive income | -10 | 86 | 13 | 256 | 333 | 92 | -26 | 164 | -170 | 366 | 283 | 36 | 36 | -298 |
| Operating margin, (EBITA),%4) | 10.3 | 9.1 | 11.0 | 6.6 | 7.5 | 6.3 | 5.9 | 5.6 | 6.7 | 6.7 | 6.9 | 5.0 | 5.1 | 6.1 |
| Operating margin, (EBIT),%5) | 10.3 | 9.1 | 10.9 | 6.6 | 7.5 | 6.3 | 5.9 | 5.6 | 6.6 | 6.7 | 6.9 | 5.0 | 5.1 | 4.4 |
| Operating margin (EBIT), excluding one-off items, % | 10.7 | 9.1 | 11.3 | 6.0 | 7.6 | 7.2 | 7.1 | 6.0 | 5.6 | 7.1 | 7.6 | 6.9 | 5.9 | 5.3 |
| Undiluted average number of shares, (000's) | 76,332 | 75,332 75,332 76,332 76,332 76,332 75,885 75,332 75,160 76,332 76,332 75,998 75,332 75,203 | ||||||||||||
| Diluted average number of shares, (000's)6) | 76,332 | 75,332 75,332 76,332 76,332 76,332 75,885 75,332 75,160 76,332 76,332 75,998 75,332 75,203 | ||||||||||||
| Undiluted number of shares, (000's) | 76,332 | 75,332 75,332 76,332 76,332 76,332 76,332 75,332 75,332 76,332 76,332 76,332 75,332 75,332 | ||||||||||||
| Diluted number of shares, (000's)6) | 76,332 | 75,332 75,332 76,332 76,332 76,332 76,332 75,332 75,332 76,332 76,332 76,332 75,332 75,332 | ||||||||||||
| Undiluted earnings per share, SEK7) | 1.44 | 1.17 | 1.51 | 3.17 | 3.16 | 1.76 | 1.58 | 1.28 | 1.50 | 3.71 | 3.05 | 1.61 | 1.21 | 0.36 |
| Diluted earnings per share, SEK 8) | 1.44 | 1.17 | 1.51 | 3.17 | 3.16 | 1.76 | 1.58 | 1.28 | 1.50 | 3.71 | 3.05 | 1.61 | 1.21 | 0.36 |
| Cash flow from operating activities |
23 | 115 | 172 | 194 | 15 | 165 | 30 | 93 | 67 | 278 | 620 | 222 | 345 | 391 |
| from operating activities per share, SEK9) Cash flow |
0.30 | 1.54 | 2.28 | 2.54 | 0.20 | 2.16 | 0.40 | 1.24 | 0.89 | 3.64 | 8.12 | 2.92 | 4.58 | 5.20 |
| Total assets | 7,031 | 7,207 | 7,275 | 7,741 | 7,301 | 6,726 | 7,031 | 7,207 | 7,275 | 6,961 | 6,517 | 6,623 | 6,479 | 6,570 |
| Net debt10) | 2,252 | 1,945 | 2,104 | 1,922 | 1,883 | 2,020 | 2,252 | 1,945 | 2,104 | 1,746 | 1,612 | 2,106 | 1,747 | 1,856 |
| Net debt/equity ratio, times11) | 0.9 | 0.7 | 0.7 | 0.5 | 0.6 | 0.7 | 0.9 | 0.7 | 0.7 | 0.5 | 0.5 | 0.8 | 0.6 | 0.7 |
| Equity | 2,621 | 2,827 | 2,882 | 3,539 | 3,311 | 2,776 | 2,621 | 2,827 | 2,882 | 3,344 | 2,967 | 2,683 | 2,699 | 2,755 |
| Undiluted equity per share, SEK12) | 34.34 | 37.53 | 38.26 | 46.36 | 43.38 | 36.37 | 34.34 | 37.53 | 38.26 | 43.81 | 38.87 | 35.15 | 35.83 | 36.57 |
| Diluted equity per share, SEK13) | 34.34 | 37.53 | 38.26 | 46.36 | 43.38 | 36.37 | 34.34 | 37.53 | 38.26 | 43.81 | 38.87 | 35.15 | 35.83 | 36.57 |
| Equity/asset ratio, %14) | 37.3 | 39.2 | 39.6 | 45.7 | 45.3 | 41.3 | 37.3 | 39.2 | 39.6 | 48.0 | 45.5 | 40.5 | 41.7 | 41.9 |
| Return on equity, %15) | 4.3 | 0.4 | 4.0 | 8.3 | 11.2 | 5.1 | 4.3 | 0.4 | 4.0 | 9.0 | 8.5 | 4.6 | 3.3 | 0.9 |
| Return on capital employed, %16) | 7.4 | 5.0 | 6.6 | 8.2 | 10.4 | 6.7 | 7.4 | 5.0 | 6.6 | 8.9 | 9.1 | 6.8 | 7.1 | 5.5 |
| Return on operating capital, %17) | 7.6 | 5.2 | 6.7 | 8.5 | 10.9 | 7.1 | 7.6 | 5.2 | 6.7 | 9.3 | 9.6 | 7.1 | 7.4 | 5.6 |
| Return on operating capital, excluding one-off items, % | 9.8 | 7.8 | 5.8 | 8.3 | 11.2 | 9.3 | 9.8 | 7.8 | 5.8 | 9.9 | 10.5 | 9.8 | 8.7 | 6.9 |
| Return on total assets, %18) | 5.4 | 3.6 | 4.9 | 6.3 | 8.0 | 5.1 | 5.4 | 3.6 | 4.9 | 6.8 | 6.9 | 5.0 | 5.2 | 4.1 |
| Interest coverage ratio, times19) | 4.1 | 4.1 | 4.4 | 9.1 | 5.8 | 3.0 | 2.4 | 2.4 | 2.4 | 5.4 | 3.5 | 2.1 | 2.1 | 1.6 |
| Net debt to EBITDA, excluding one-off items 20) | 3.6 | 4.0 | 4.3 | 3.2 | 2.7 | 3.6 | 3.6 | 4.0 | 4.3 | 2.9 | 3.1 | 3.5 | 3.6 | 4.3 |
| No. of employees at close of period21) | 4,438 | 4,446 | 4,485 | 5,109 | 4,470 | 4,387 | 4,438 | 4,446 | 4,485 | 4,587 | 4,371 | 4,363 | 4,347 | 4,381 |
* Not restated. Changes in IAS 19R are not reflected.
For Definitions, see page 20.
The consolidated accounts for the third quarter of 2015, as for the annual accounts for 2014, have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU, the Swedish Annual Accounts Act, and the Swedish Financial Reporting Board RFR 1, Supplementary Accounting Rules for Groups.
This quarterly report has been prepared in accordance with IAS 34. The Group has applied the same accounting policies as described in the Annual Report for 2014.
From 1 January 2015, Lindab will be applying the following new and amended accounting standards and interpretations:
None of the new or amended standards, interpretations and improvements adopted by the EU have had any significant effect on the Group.
The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and RFR 2, Accounting for legal entities, and according to the same accounting principles that were applied to the Annual Report for 2014.
Significant estimates and assumptions are described in Note 4 in the Annual Report for 2014.
There have not been any changes made to anything that could have a material impact on the interim report.
| Total Acquisitions | ||||||||
|---|---|---|---|---|---|---|---|---|
| 30 Sep 2015 | 30 Sep 2014 | |||||||
| Purchase price | 300 | 20 | ||||||
| Assets and liabilities | ||||||||
| included in acqusition | ||||||||
| Intangible fixed assets | 77 | - | ||||||
| Tangible fixed assets | 178 | 6 | ||||||
| Financial fixed assets | 17 | - | ||||||
| Stock | 58 | 12 | ||||||
| Current assets | 118 | 4 | ||||||
| Cash and cash equivalents | 39 | - | ||||||
| Long-term liabilities | -81 | - | ||||||
| Short-term liabilities | -168 | -4 | ||||||
| Fair value acquired net | ||||||||
| assets | 238 | 18 | ||||||
| Goodwill | 96 | 2 | ||||||
| Negative goodwill | -34 | - |
| Total divestments | ||
|---|---|---|
| 30 Sep 2015 | 30 Sep 2014 | |
| Sales price | 97 | - |
| Assets and liabilities | ||
| included in divestment | ||
| Intangible fixed assets | 2 | - |
| Tangible fixed assets | 40 | - |
| Financial fixed assets | 13 | - |
| Stock | 9 | - |
| Current assets | 26 | - |
| Cash and cash equivalents | 9 | - |
| Long-term liabilities | -2 | - |
| Short-term liabilities | -12 | |
| Fair value divested net | ||
| assets | 85 | - |
| - | ||
| Capital gain | 12 | - |
On 7 August, the US subsidiary Lindab Inc. was divested. The business covers production and sale of ventilation ducts and components, mainly in the eastern regions of the USA. Lindab Inc., which is based in Portsmouth, Virginia, has operated as an independent unit on the US market and will continue to distribute Lindab's products. In 2014, the company had a turnover of just under SEK 150 m and 98 employees. The divestment allows Lindab to further focus its resources on its core business and accelerate the strategic move towards profitable growth. The sales price amounted to SEK 97 m and included a capital gain of SEK 12 m. The capital gain after transaction costs amounted to SEK 2 m.
On 1 July, the assets of the French company Froid Partn'Air were acquired. The business covers distribution of ventilation and indoor climate products in the region around Marseille in France. The company has annual revenue of around SEK 13 m and five employees. The acquisition strengthens Lindab's presence and distribution in this area which is the third most populous area in France. The purchase price amounted to SEK 2 m, and the acquisition did not result in any consolidated goodwill. The direct costs related to the acquisition amounted to SEK 0 m.
On 3 June, the French company Nather S.A. was acquired whose business mainly covers products and solutions for residential ventilation. The company has annual sales of approximately SEK 45 m and 17 employees. The company's sales are mainly in France, and the acquisition is expected to produce synergies primarily within sales and purchasing. The acquisition strengthens Lindab's market position in the form of complete residential ventilation solutions in the French market and nearby markets. The purchase price amounted to SEK 11 m, and the acquisition resulted in consolidated goodwill of SEK 10 m. The direct costs related to the acquisition amounted to SEK 0 m.
In May an agreement was concluded on the acquisition of the Slovenian ventilation company IMP Klima which was completed on 1 July. The business comprises products and solutions for ventilation and indoor climate with cutting-edge expertise within air handling units and fans. IMP Klima has its registered office and main business in Godovic, Slovenia. The company has turnover of around SEK 230 m with an operating profit (EBIT) of approximately SEK 1 m for the past twelve months until June 2015 and about 360 employees. The acquisition is a strategic step for Lindab towards developing its position as a complete supplier of ventilation and indoor climate solutions. The purchase price amounted to EUR 1. The purchase agreement also included the repayment of loans of around SEK 146 m. Negative goodwill is recognised in other operating income and amounts to SEK 34 m. The direct costs related to the acquisition amounted to SEK 1 m.
The agreement on the acquisition of MP3, which was concluded in December 2014, was completed during the first quarter. MP3 is a leading manufacturer of indoor climate solutions, with specialist knowledge in smoke and fire protection. MP3 has its registered office in Padua in Northern Italy, has annual sales of approximately SEK 210 m, with an operating profit (EBIT) of around SEK 20 m, and 95 employees. MP3 is integrated into Lindab's business, which means synergy gains, mainly in sales, but also in terms of costs.
The purchase price amounted to SEK 141 m. The direct costs related to the acquisition amounted to SEK 2 m. The total cash flow effect of the acquisition amounted to SEK 143 m. Fair value of acquired identifiable intangible fixed assets of SEK 51 m, including brands, distribution networks and licences. The acquisition includes consolidated goodwill of SEK 86 m.
For all acquisitions the fair value of acquired assets and liabilities corresponds to their book value.
All purchase price analyses are preliminary pending the final valuation.
During the period January-September last year, Klimasystem AS, a former agent for the Lindab indoor climate systems, was acquired in Norway. The company had four employees and annual turnover of approximately SEK 15 m. The acquisition contributed additional expertise to the product range for indoor climate solutions. The purchase price amounted to SEK 4 m and affected Lindab's cash flow negatively by the corresponding amount. The direct costs related to the acquisition amounted to SEK 0 m. The fair value of acquired assets and liabilities corresponded to their book value.
During the period January-September last year, in addition to Klimasystem AS, the business activities of NovoClima were acquired through an acquisition of assets, which were placed in a newly formed company, Lindab Götene AB. The purchase price amounted to SEK 16 m and affected Lindab's cash flow negatively by the corresponding amount. The direct costs related to the acquisition amounted to SEK 0 m. The fair value of acquired assets and liabilities corresponded to their book value.
Lindab's business is based on a geographically distributed sales organisation supported by six product and system areas with central production and purchasing functions. The basis for the division into segments are the different products that each segment supplies. The Group's segments comprise Products & Solutions and Building Systems. The operating segment Other comprises parent company functions including treasury function.
Information about revenues from external customers and operating profit by operating segment, excluding one-off items, is shown in the tables on page 7.
Revenues from other segments contribute only small amounts and a breakdown of this sum by segment is therefore deemed irrelevant.
Inter-segment transfer pricing is determined on an arms-length basis i.e. between parties that are independent of one another, are well informed and have an interest in the implementation of the transaction. Assets and investments are reported wherever the asset is located.
Assets and liabilities per segment that have changed by more than 10 percent compared with the end of 2014 are shown below:
Lindab's related parties and the extent of transactions with its related parties are described in Note 29 of the Annual Report for 2014.
Other transactions described in the Annual Report 2014 have continued to the same extent during 2015. These have not had any significant impact on the company's position and profit.
| 30 Sep 2015 | 31 Dec 2014 | ||||
|---|---|---|---|---|---|
| Total | Total | ||||
| carrying | Fair | carrying | Fair | ||
| Financial assets | amount | value | amount | value | |
| Other investments held as fixed assets | 2 | - | 1 | - | |
| Other long-term receivables | 4 | - * |
3 | - * |
|
| Derivative receivables | 8 | 8 | 1 | 1 | |
| Accounts receivable | 1,467 | - * |
1,064 | - * |
|
| Other receivables | 8 | - * |
8 | - * |
|
| Accrued income | 5 | - * |
6 | - * |
|
| Cash and cash equivalents | 301 | - * |
300 | - * |
|
| Total financial assets | 1,795 | 8 | 1,383 | 1 | |
| Total | Total | ||||
| carrying | Fair | carrying | Fair | ||
| Financial liabilities | amount | value | amount | value | |
| Overdraft facilities | 154 | 154 | 99 | 99 | |
| Liabilities to credit institutions | 1,914 | 1,846 | 1,728 | 1,725 | |
| Derivative liabilities | 22 | 22 | 19 | 19 | |
| Accounts payable | 910 | - * |
650 | - * |
|
| Other liabilities | 18 | - * |
6 | - * |
|
| Accrued expenses | 191 | - * |
172 | - * |
|
Total financial liabilities 3,209 2,022 2,674 1,843
No information about fair value with respect to unlisted shares and participations is provided. Lindab considers that a fair value cannot be calculated in a reliable manner, and that the market for these holdings is limited.
Other long-term receivables consist of cash deposited as security for rent, which means that the carrying amount is considered to be a reasonable approximation of fair value.
The fair value of interest-bearing liabilities is provided for the purposes of disclosure and is calculated by discounting the future cash flows of principals and interest payments, discounted at current market interest rates.
Forward exchange contracts are valued at fair value by discounting the difference between the contracted forward rate and the rate that can be subscribed for on the balance sheet date for the remaining contract term.
For cash and cash equivalents, accounts receivable, other receivables, accrued income, accounts payable, overdraft facilities, other liabilities and accrued expenses with a remaining maturity of less than six months, the carrying amount is considered to reflect the fair value.
The derivative assets, derivative liabilities and interest-bearing liabilities that exist can all be found at Level 2 in the valuation hierarchy.
| Reporting period outcome | ||||||
|---|---|---|---|---|---|---|
| Quarter | Operating profit Operating profit | |||||
| Products & | Building | Other | (EBIT) incl. one | (EBIT) excl. one | ||
| Current year | Solutions | Systems | Operations | Total | off items | off items |
| 1/2015 | - | - | - | - | 54 | 54 |
| 2/2015 | - | - | - | - | 110 | 110 |
| 3/2015 | 43 | - | –13 | 30 | 205 | 175 |
| Total | 43 | - | –13 | 30 | 369 | 339 |
| Operating profit (EBIT) incl. | ||||||
| one-off items, acc. 2015 | 434 | –12 | –53 | 369 | ||
| Operating profit (EBIT) | ||||||
| excl. one-off items | 391 | –12 | –40 | 339 | ||
| The previous year, acc. reporting period |
||||||
| 1/2014 | –3 | - | - | –3 | 57 | 60 |
| 2/2014 | - | –1 | - | –1 | 124 | 125 |
| 3/2014 | –5 | –2 | 2 | –5 | 205 | 210 |
| 4/2014 | –13 | –8 | - | –21 | 81 | 102 |
| Total | –21 | –11 | 2 | –30 | 467 | 497 |
| Operating profit (EBIT) incl. | ||||||
| one-off items, acc. 2014 | 450 | 41 | –24 | 467 | ||
| Operating profit (EBIT) | ||||||
| excl. one-off items | 471 | 52 | –26 | 497 | ||
| Operating profit (EBIT) has been adjusted by the following one-off items per quarter: | ||||||
| 1/2015 | The quarter has not been affected by one-off items. | |||||
| 2/2015 | The quarter has not been affected by one-off items. |
|---|---|
| 3/2015 | The quarter has been affected by structure-related income and costs related to acquisition of MP3 and IMP |
| Klima and divestment of Lindab Inc of SEK 29 m. The quarter has also been affected by a capital gain of | |
| SEK 8 m related to sale of property in Finland and costs related to governance projects of SEK – 7 m. | |
| 1/2014 | SEK –3m relating to restructuring costs resulting from the reorganisation. |
| 2/2014 | SEK –1m relating to restructuring costs resulting from the reorganisation. |
| 3/2014 | SEK –5m relating to restructuring costs resulting from the reorganisation. |
| 4/2014 | SEK –21m relating to restructuring costs resulting from the reorganisation. |
This interim report for Lindab International AB (publ) has been submitted following approval by the Board of Directors.
Båstad, 26 October 2015
Anders Berg
President and CEO
We have reviewed the interim report for Lindab International AB (publ), org nr 556606-5446, as per 30 Septemer 2015 and the nine-moth peiod that ended on this date. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim financial report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim financial report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
Gothenburg, 26 October 2015
Deloitte AB
Hans Warén Authorised Public Accountant
1) Operating profit (EBITDA) comprises the results before planned depreciation and before consolidated amortisation of the surplus value in intangible assets.
2) Operating profit (EBITA) comprises the results after planned depreciation but before consolidated amortisation of the surplus value in intangible assets.
3) Operating profit (EBIT) comprises the results before financial items and tax.
4) Operating margin (EBITA) has been calculated as operating profit (EBITA) as a percentage of sales revenue during the period.
5) Operating margin (EBIT) has been calculated as operating profit (EBIT) expressed as a percentage of sales revenue during the period.
6) Average number of shares, after dilution Weighted average number of outstanding shares at the end of the period, as well as potential additional shares in accordance with IAS 33.
7) Undiluted earnings per share, SEK Profit for the period in relation to the undiluted average number of outstanding shares.
8) Diluted earnings per share, SEK Profit for the period in relation to the diluted average number of outstanding shares.
9) Cash flow from operating activities per share, SEK Cash flow from operating activities in relation to the undiluted average number of outstanding shares during the period.
10) Net debt The net debt consists of interest-bearing liabilities and assets, as well as cash and bank.
11) Net debt/equity ratio The net debt/equity ratio is expressed as the net debt in relation to shareholders' equity.
12) Undiluted equity per share, SEK Shareholders' equity in relation to the undiluted number of outstanding shares at the end of the period.
*) Average capital is based on the quarterly value.
**) Average net debt in the past twelve-month period.
13) Diluted equity per share, SEK Shareholders' equity in relation to the diluted number of outstanding shares at the end of the period.
14) Equity/asset ratio, % The equity ratio has been calculated as shareholders' equity as a percentage of total assets according to the balance sheet.
15) Return on shareholder's equity, % Return on shareholder's equity comprises the after-tax result for the period, rolling twelvemonth value, as a percentage of the average shareholder's equity* excluding shares without controlling interests.
16) Return on capital employed, % Return on capital employed comprises the pre-tax result (EBT) plus financial expenses, rolling twelve-month value, as a percentage of average capital employed*. Capital employed refers to total assets less noninterest-bearing provisions and liabilities.
17) Return on operating capital, % Return on operating capital comprises the operating profit (EBIT), rolling twelve-month value, as a percentage of average operating capital*. Operating capital refers to the total of net debt and shareholders' equity.
18) Return on total assets, % The return on total assets comprises the pre-tax result (EBT) plus financial expenses, rolling twelve-month value, as a percentage of average total assets*.
19) Interest coverage ratio The interest coverage ratio has been calculated as the profit after financial items plus financial expenses in relation to financial expenses.
20) Net debt in relation to EBITDA consists of average** net debt in relation to EBITDA, excluding one-off items, rolling twelvemonth value.
21) Number of employees at the end of the period The number of employees at the end of the period consists of the number of employees converted to full-time positions.
| Year-end report | 11 February 2016 |
|---|---|
| Annual Report | April 2016 |
| Interim Report January-March | 3 May 2016 |
| Annual General Meeting | 3 May 2016 |
| Anders Berg, President and CEO | E-mail: [email protected] |
|---|---|
| Linda Kjellgren, acting CFO | E-mail: [email protected] |
| Telephone +46 (0) 431 850 00 |
For more information, please also visit www.lindab.com
Subscribe to our customer magazine (Lindab Direct), press releases, Annual Reports and Interim Reports.
The Group had sales of SEK 7,003 m in 2014 and is established in 32 countries with approximately 4,600 employees.
The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2014, the Nordic market accounted for 46 percent, the CEE/CIS (Central and Eastern Europe plus other
former Soviet states) for 21 percent, Western Europe for 30 percent and other markets for 3 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm List, Mid Cap, under the ticker symbol LIAB.
Lindab develops, manufactures, markets and distributes products and system solutions for simplified construction and improved indoor climate.
Lindab's product and solution offering includes products and entire systems for ventilation, cooling and heating, as well as construction products and building solutions such as roof drainage in steel, roof and wall cladding, steel profiles for wall,
SE-269 82 Båstad, Sweden Visiting address: Järnvägsgatan 41, Grevie, Sweden Corporate identification number 556606-5446 Tel: +46 (0) 431 850 00 Fax: +46 (0) 431 850 10 E-mail [email protected] www.lindabgroup.com https://www.facebook.com/LindabGroup
roof and beam constructions and large span buildings. Lindab also offers complete, prefabricated steel construction systems under the Astron brand. These are complete building solutions comprising the outer shell with the main structure, wall, roof and accessories.
The products are characterised by their high quality, ease of assembly, energy efficiency and environmental design and are delivered with high levels of service.
Lindab's value chain is characterised by a good balance between centralised and decentralised functions. The distribution has been developed in order to be close to the customer. Sales are made through around 130 Lindab branches and just under 2,000 stockkeeping retailers, with the exception of Building Systems, which conducts sales through a network of nearly 300 building contractors.
The information provided here is what Lindab International AB has willingly chosen to make public, or is obliged to make public under the Swedish Securities Market Act and/or the Financial Instruments Trading Act. This information was made public on 27 October 2015 at 07.40 (CET).
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