Fagerhult

Quarterly Report • Aug 20, 2015

Interim Report January - June 2015

• The order intake was MSEK 2,066.7 (1,951.8), which is an increase of 1 per cent after adjusting for currency effects and acquired units.
• Net sales were MSEK 1,864.5 (1,829.8), which is a decrease of 5 per cent after adjusting for currency effects and acquired units.
• The operating profit was MSEK 160.9 (169.6), representing an operating margin of 8.6 (9.3) per cent
• The profit after tax was MSEK 111.9 (114.0).
• Earnings per share were SEK 2.96 (3.01).
• Cash flow from operating activities was MSEK 129.6 (113.6).

Comments by CEO Johan Hjertonsson:

• A very good order intake of MSEK 1,091 (969) in the second quarter, an increase by 13 %, which makes this quarter the best yet for the Group.
• Our strong offering to the healthcare sector is yielding fruit, as shown by our strong order intake from large hospitals in Australia, the UK and other countries.
• The order backlog at the end of the first quarter was MSEK 160 higher than at the same date in 2014.
• A stable quarter in which we achieved sales and earnings at the same high level as in the second quarter of 2014.
• Through the agreement to acquire the assets of Lighting Innovations in South Africa we are establishing a presence in the dynamic Sub-Saharan Africa region, which has great growth potential. We expect to finalise the acquisition in the second half of the year.
• The LED lighting share of net sales continues to expand.
• Market growth over the period remained brisk in the UK and was stable in Scandinavia but lower in parts of the eurozone.

THE GROUP

JANUARY- JUNE

The growth rate of the market for lighting solutions is deemed to have remained unchanged compared with the first quarter of 2015. Market growth varies geographically, with the UK being the fastest growing among the Group's major markets.

The total order intake in the Group was MSEK 2,066.7 (1,951.8), which is an increase of 6 per cent. Adjusted for currency and acquisition effects, the order intake grew by 1 per cent.The comparative period included an order intake of MSEK 110 relating to two very large projects in the UK involving a transition to energy-smart LED solutions. The order backlog at the end of the first quarter was MSEK 160 higher than at the same date in 2014.

Net sales were MSEK 1,864.5 (1,829.8), which was an increase of 2 per cent. Adjusted for currency and acquisition effects, net sales decreased by 5 per cent. This was due to the aforementioned projects, which added around MSEK 100 to net sales in the comparative period.

The share of LED products continues to grow. Our focus is partly on stepping up the pace of product development and partly on phasing out light fixtures for traditional light sources. By investing in product development and developing our sales organisation, we continue to strengthen our product offering and our brands.

Our underlying business has performed well in most of our main markets, including Sweden, the UK and Germany, while growth in France, Turkey and the Netherlands was more modest in the first half of 2015.

The operating profit was MSEK 160.9 (169.6). The change was largely an effect of a slight decrease in sales.The operating margin was 8.6 (9.3) per cent. Changes in exchange rates and acquired units together added MSEK 11 to the operating profit compared with the previous year. The stronger British pound had a positive impact while the strengthening of the Chinese yuan hit earnings through higher production costs at the Group's production plant in China.

Financial items were MSEK -10.4 (-15.4). The improvement was principally due to a lower interest expense as a result of a reduced net debt and lower interest rates.

The tax expense for the period was MSEK -38.6 (-40.2), which resulted in a slightly lower tax rate than in the previous year. Earnings per share in the first six months were SEK 2.96 (3.01).

Net sales in Indoor Lighting declined by 4 per cent year on year while net sales in Retail Lighting were down by 10 per cent. A number of big projects of a non-recurring nature in the comparative period affected Indoor Lighting as well as Retail Lighting.Retail Lighting also had lower sales in France and Australia than in the previous year.Outdoor Lighting grew by 13 per cent on the back of a strong sales performance for the new Vialume and Evolume products in the Nordic region.New outdoor products under the Fagerhult brand are launched continuously, and this is expected to ensure continued robust growth in Outdoor Lighting. The above percentage changes for the product areas have been adjusted for acquisitions and currency effects.

Net sales per product area
		Q 2		Q 1-2
	2015	2014	2015	2014
Indoor Lighting	640,7	625,0	1 263,7	1 214,3
Retail Lighting	245,9	259,0	482,8	514,2
Outdoor Lighting	72,4	60,3	118,0	101,3
	959,0	944,3	1 864,5	1 829,8

THE SECOND QUARTER

The order intake in the second quarter was MSEK 1,090.6 (968.5), which is an increase of 13 per cent. Excluding acquisitions and currency effects, the increase was 7 per cent.With new orders worth over SEK 1 billion in the three-month period, we achieved a new milestone, registering our highest ever quarterly order intake. The order intake was good in most of our main markets and particularly strong in Scandinavia, Australia and the UK.

Net sales for the second quarter were MSEK 959.0 (944.3), which represents a decrease of 5 per cent after adjusting for acquisitions and currency effects.The decrease refers primarily to the UK, where the underlying business is performing well and where the comparative period included MSEK 70 in invoicing for major projects of a non-recurring nature.

The operating profit in the quarter was MSEK 88.2 (94.3), representing an operating margin of 9.2 (10.0) per cent.

BUSINESS AREAS

NET SALES AND OPERATING PROFIT PER BUSINESS AREA
	Net sales					Operating profit		Operating margin,%
	Q 2		Q 1-2		Q 2		Q 1-2		Q 2		Q 1-2
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
Northern Europe	461.4	455.7	894.1	933.3	28.9	33.5	55.2	65.1	6.3	7.4	6.2	7.0
UK and Ireland	288.1	319.4	545.6	556.9	42.7	48.7	63.6	75.0	14.8	15.2	11.7	13.5
Other Europe	177.5	167.8	368.4	365.8	15.4	7.5	35.5	23.4	8.7	4.5	9.6	6.4
Middle East, Asia and the Pacific	121.1	103.0	236.8	185.7	13.3	13.3	26.3	20.7	11.0	12.9	11.1	11.1
Other					-12.1	-8.7	-19.7	-14.6	-	-	-	-
Elimination	-89.1	101.6	-180.4	-211.9	-	-	-	-	-	-	-	-
Total	959.0	944.3	1 864.5	1 829.8	88.2	94.3	160.9	169.6	9.2	10.0	8.6	9.3
Financial unallocated items					-6.5	-7.0	-10.4	-15.4
Profit before tax					81.7	87.3	150.5	154.2

NORTHERN EUROPE

The business area comprises the Group's units and companies in the Nordic and Baltic countries and Russia. The Group's plant in China, including manufacturing and purchasing, is also part of the business area. In Sweden and Finland the Group conducts development, manufacturing and sales activities while operations in other markets, with the exception of China, refer only to sales.

Net sales in the first half of the year were MSEK 894.1, compared with MSEK 933.3 in the year-before period. Adjusted for currency effects, this was a decrease of 4 per cent on the previous year.The operating profit for the same period was MSEK 55.2 (65.1) and the operating margin 6.3 (7.4) per cent. The lower operating profit was an effect of lower sales and higher production costs in China as a result of a stronger Chinese yuan.

Northern Europe
	Q 2			Q 1-2
	2015	2014	2015	2014
Net Sales	461.4	455.7	894.1	933.3
(of which to group companies)	(66.0)	(87.0)	(132.6)	(187.9)
Operating profit	28.9	33.5	55.2	65.1
Operating margin, %	6.3	7.4	6.2	7.0
Sales growth, %	1.3	16.3	-4.2	18.8
Sales growth, adjusted for exchange rate differences , %	0.2	16.2	-4.9	19.1
Growth in Operating profit, %	-13.7	81.1	-15.2	157.3

UK AND IRELAND

The business area comprises our companies in the United Kingdom and Ireland. The dominant unit is Whitecroft Lighting, which develops, manufactures and sells lighting systems.

Net sales in the first six months were MSEK 545.6, compared with MSEK 556.9 in 2014. Adjusted for currency effects, this represented a decrease of 16 per cent. The lower level of sales was due to two major energy efficiency projects worth a total of MSEK 110 that were invoiced in the first half of 2014. No equivalent projects were invoiced in the first half of 2015. Sales in the underlying business, excluding currency effects and one-off projects, grew by 4 per cent.

The operating profit for the quarter was MSEK 63.6 (75.0) and the operating margin was 11.7 (13.5) per cent.

UK and Ireland
	Q 2			Q 1-2
	2015	2014	2015	2014
Net Sales	288.1	319.4	545.6	556.9
(of which to group companies)	(8.5)	(10.3)	(22.8)	(16.7)
Operating profit	42.7	48.7	63.6	75.0
Operating margin, %	14.8	15.2	11.7	13.5
Sales growth, %	-9.8	59.3	-2.0	54.6
Sales growth, adjusted for exchange rate differences , %	-22.3	44.9	-16.2	42.2
Growth in Operating profit, %	-12.3	131.9	-15.2	147.5

OTHER EUROPE

The business area comprises our operations in Germany, the Netherlands, France, Spain, Slovakia and Poland. The largest operation is LTS Licht & Leuchten GmbH in Germany, which develops, manufactures and sells lighting systems.

Net sales for the first six months were MSEK 368.4, compared with MSEK 365.8 in the prior year. This is a decrease of 3 per cent after adjusting for currency effects. Sales grew at a strong pace in Germany and Poland but declined in France, the Netherlands and Spain, mainly in Retail Lighting.The operating profit for the same period was MSEK 35.5 (23.4). The increased operating profit was due to a changed market mix.

Other Europe
	Q 2			Q 1-2
	2015	2014	2015	2014
Net Sales	177.5	167.8	368.4	365.8
(of which to group companies)	(3.8)	(4.3)	(8.5)	(7.4)
Operating profit	15.4	7.5	35.5	23.4
Operating margin, %	8.7	4.5	9.6	6.4
Sales growth, %	5.8	5.9	0.7	12.9
Sales growth, adjusted for exchange rate differences , %	2.9	0.0	-3.5	7.5
Growth in Operating profit, %	105.3	-37.0	51.7	-24.3

MIDDLE EAST, ASIA AND THE PACIFIC

The business area comprises our operations in Turkey, the United Arab Emirates, Australia and New Zealand. Arlight, which has its registered office in Ankara, Turkey, was consolidated in the segment in 2014. The Australian and Turkish operations develop, manufacture and sell lighting systems while the operation in the UAE and New Zealand refers to sales.

Net sales in the first half of the year were MSEK 236.8, up from MSEK 185.7 in the prior year, which represented an increase of 14 per cent after adjusting for currency effects and acquired units. The increase was due to improved sales in all markets. The operating profit was MSEK 26.3 (20.7) and the operating margin 11.1 (11.1) per cent. The segment had a very good order intake, including an order for a major hospital project in Queensland, Australia, with deliveries this year and next.

Middle East, Asia and the Pacific
	Q 2			Q 1-2
	2015	2014	2015	2014
Net Sales	121.1	103.0	236.8	185.7
(of which to group companies)	(10.9)	(0.0)	(16.6)	(0.0)
Operating profit	13.3	13.3	26.3	20.7
Operating margin, %	11.0	12.9	11.1	11.1
Sales growth, %	17.6	64.5	27.5	54.6
Sales growth, adjusted for exchange rate differences , %	9.0	67.9	14.0	62.6
Growth in Operating profit, %	0.0	129.3	27.1	102.9

OTHER

This business area is mainly comprised of corporate functions and the Parent Company, AB Fagerhult.

FINANCIAL POSITION

The Group's equity/assets ratio at the end of the quarter was 38 (32) per cent. Cash and bank balances at the end of the period were MSEK 271 (273) and consolidated equity was MSEK 1,328 (1,119).Net debt was MSEK 1,088 (1,206). During the quarter the dividend of MSEK 113.5 adopted at the Annual General Meeting was paid.

Cash flow from operating activities was MSEK 130 (114). The MSEK 16 improvement was an effect of a favourable change in working capital. Tax paid has increased, however, as a result of a strong result in the previous year.

Pledged assets and contingent liabilities were MSEK 7.3 (7.1) and MSEK 1.7 (1.7), respectively.

INVESTMENTS

The Group's gross investments in non-current assets were MSEK 88 (52). The figure does not include investments in subsidiaries, which were MSEK 0 (259).

EVENTS AFTER THE REPORTING PERIOD

Acquisition of Lighting Innovations

With the aim of establishing a presence for the Fagerhult Group in the South African market and in Sub-Saharan Africa, Fagerhult has concluded an agreement to acquire the assets of Lighting Innovations, which has its registered office in Port Elizabeth, South Africa, along with the assets of the subsidiary

companies Beacon Lighting and Arrow Lighting. The acquisition will have a positive impact on earnings per share as of 2016.

The companies, which have 210 employees, manufacture light fixtures and lighting systems for principally indoor applications such as offices, shopping centres, hospitals and schools. The companies had combined sales of around MEUR 13 for the financial year ended June 2015.

Fagerhult is paying MEUR 8.6 (cash and debt-free) for the assets of the three companies. The deal is expected to be finalised in the second half of 2015.Additional considerations may be payable until 2018 depending on financial performance. The transaction is being funded through new credit facilities.

Lighting Innovations will be consolidated in the Africa, Asia and Australia segment (which will change name from Middle East, Asia and Australia).

PERSONNEL

The average number of employees during the period was 2,425 (2,326).

PARENT COMPANY

AB Fagerhult's operations comprise corporate management, financing and coordination of marketing, production and business development activities. The profit after financial items was MSEK 48.2 (10.8).

The number of employees during the period was 6 (6).

ACCOUNTING PRINCIPLES

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

The Parent Company's interim report has been prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 of the Swedish Financial Reporting Board. The applied accounting principles have not changed since the previous year.

For more information on the applied accounting principles, see the "Financial information" section on AB Fagerhult's website.

RISKS AND UNCERTAINTIES

The Group's significant risks and uncertainties mainly consist of commercial risks and financial risks relating to currencies and interest rates. Through the Company's international operations the Fagerhult Group has financial exposure to currency fluctuations. The most significant are currency risks in connection with export sales and imports of raw materials and components. This exposure is reduced through hedging of flows in sensitive currencies, subject to individual assessments. Currency risks also arise upon translation of the net assets and results of foreign operations. Further information on the Company's risks is provided in the annual report for 2014. Other than the risks described in the annual report, no further significant risks are deemed to have arisen.

OUTLOOK FOR 2015

Over the past year the Group has seen strong sales and earnings growth through acquisitions as well as organic growth. By developing its brands and product portfolio, the Group has established a strong position in all its principal markets and succeeded in increasing its market shares.

The lighting market has been in a recovery since late 2013, and management expects a continued recovery through 2015.

The outlook varies across the geographic markets in which the Group operates. Market growth is good in the UK and stable in Scandinavia – two markets which together account for more than half of consolidated net sales. Market growth has been somewhat lower in large parts of the eurozone.

The Group intends to continue to invest significant resources in product development and marketing, and in increased internationalisation. Management's ambition is to continue to strengthen the Group's market shares.

DECLARATION

The Board of Directors and Chief Executive Officer warrant that the interim report gives a true and fair picture of the company's and Group's operations, financial position and results, and describes all significant risks and uncertainties faced by the Group.

Habo, 20 August 2015

AB Fagerhult (publ)

Jan Svensson Cecilia Fasth Chairman Board Member

Björn Karlsson Eric Douglas Board Member Board Member

Board Member Board Member

Johan Hjertonsson Director and Chief Executive Officer

Magnus Nell Lars-Åke Johansson

Catherina Fored Fredrik Palmstierna

Employee Representative Employee Representatitive

The report has not been the subject of a special examination by the Company's auditors.

The Interim Report for the third quarter 2015 will be presented on 22 October 2015.

Further information can be obtained from Johan Hjertonsson, CEO or Håkan Gabrielsson, CFO, tel 036-10 85 00.

AB Fagerhult (publ)

Corporate Identity Number 556110-6203 SE-566 80 Habo Tel +46(0) 36-10 85 00 headoffice@fagerhult.se www.fagerhultgroup.com

THE GROUP

INCOME STATEMENT	2015	2014	2015	2014	2014/15	2014
	Apr-Jun	Apr-Jun	Jan - Jun	Jan - Jun	Jul - Jun	Jan- Dec
	3 months	3 months	6 months	6 months	12 months	12 months
Net sales	959.0	944.3	1 864.5	1 829.8	3 770.5	3 735.8
(of which outside Sweden)	(733.1)	(744.5)	(1 430.5)	(1 417.5)	(2 943.1)	(2 930.1)
Cost of goods sold	-652.0	-643.9	-1263.9	-1248.2	-2540.1	-2524.4
Gross profit	307.0	300.4	600.6	581.6	1230.4	1211.4
Selling expenses	-173.1	-159.1	-340.1	-317.4	-659.2	-636.5
Administrative expenses	-50.8	-50.8	-111.2	-103.9	-227.0	-219.7
Other operating income	5.1	3.8	11.6	9.3	25.8	23.5
Operating profit	88.2	94.3	160.9	169.6	370.0	378.7
Financial items	-6.5	-7.0	-10.4	-15.4	-25.7	-30.7
Profit after financial items	81.7	87.3	150.5	154.2	344.3	348.0
Tax	-21.4	-22.8	-38.6	-40.2	85.2	-86.8
Net profit for the period	60.3	64.5	111.9	114.0	259.1	261.2
Profit attributed to owners of the parent company	60.3	64.5	111.9	114.0	259.1	261.2
Earnings per share, calculated on profit attributed to owners of the parent company:
Earnings per share before dilution, SEK	1.59	1.70	2.96	3.01	6.85	6.90
Earnings per share after dilution, SEK	1.59	1.70	2.96	3.01	6.85	6.90
Average no. of outstanding shares before dilution	37 850	37 836	37 850	37 836	37 839	37 836
Average no. of outstanding shares after dilution	37 850	37 836	37 850	37 836	37 839	37 836
No. of outstanding shares, thousands	37 863	37 836	37 863	37 836	37 863	37 836
Profit and other comprehensive income for the period
Net profit for the period	60.3	64.5	111.9	114.0	259.1	261.2
Other comprehensive income
Items which are not reversed in the income statement:
Revaluation of pension plans	-	-0.2	-	-0.4	3.3	2.9
Items which may be reversed in the income statement:
Exchange differences on translation foreign operations	-31.7	52.5	-1.2	65.7	56.9	123.8
Other comprehensive income for the period, net of tax	-31.7	52.3	-1.2	65.3	60.2	126.7
Total comprehensive profit for the period	28.6	116.8	110.7	179.3	319.3	387.9
Total comprehensive profit for the period attributed to owners of the Parent Company	28.6	116.8	110.7	179.3	319.3	387.9

BALANCE SHEET	30 Jun 2015	30 Jun 2014	31 Dec 2014
Intangible assets 1)	1432.2	1360.3	1 447.3
Tangible fixed assets	388.3	353.7	387.0
Financial assets 1)	23.6	46.8	26.2
Inventories. etc.	605.8	594.1	574.3
Accounts receivable - trade	715.9	727.3	676.4
Other non interest-bearing current assets	89.0	93.2	67.4
Liquid funds	270.9	272.8	353.1
Total assets	3 525.7	3 448.2	3 531.7
Equity	1 327.5	1 118.6	1 329.2
Long-term interest-bearing liabilities	1 267.6	1 374.3	1 333.0
Long-term non interest-bearing liabilities	86.0	100.3	101.5
Short-term interest-bearing liabilities	91.6	104.7	60.4
Short-term non interest-bearing liabilities	753.0	750.3	707.6
Total equity and liabilities	3 525.7	3 448.2	3 531.7

1) The acquired net assets of Arlight have been remeasured, resulting in an increase in goodwill of MSEK 22.3. The value of financial assets has been decreased by the same amount. The comparative figures have been adjusted. The change has no impact on the income statement..

CASH FLOW STATEMENT	2015	2014	2015	2014	2014/15	2014
	Apr-Jun	Apr-Jun	Jan - Jun	Jan - Jun	Jul - Jun	Jan- Dec
	3 months	3 months	6 months	6 months	12 months	12 months
Operating profit	88.2	94.3	160.9	169.6	370.0	378.7
Adjustment for items not included in the cash flow	18.9	25.2	64.6	47.4	131.4	114.2
Financial items	-5.2	-5.0	-9.5	-14.0	-25.4	-29.9
Paid tax	-33.1	-16.4	-63.6	-34.5	-90.0	-60.9
Cash flow generated by operations	68.8	98.1	152.4	168.5	386.0	402.1
Changes in working capital	4.3	-2.0	-22.8	-54.9	21.0	-11.1
Cash flow from continuing operations	73.1	96.1	129.6	113.6	407.0	391.0
Cash flow from investing activities	-44.0	-51.7	-63.6	-330.6	-161.3	-428.3
Cash flow from financing activities	-89.5	-9.0	-152.4	229.1	-262.1	119.4
Cash flow for the period	-60.4	35.4	-86.4	12.1	-16.4	82.1
Liquid funds at the beginning of the period	335.1	227.3	353.1	248.6	272.8	248.6
Translation differences in liquid funds	-3.8	10.1	4.2	12.1	14.5	22.4
Liquid funds at the end of the period	270.9	272.8	270.9	272.8	270.9	353.1

KEY RATIOS AND DATA PER SHARE	2015	2014	2015	2014	2014/15	2014
	Apr-Jun	Apr-Jun	Jan - Jun	Jan - Jun	Jul - Jun	Jan- Dec
	3 months	3 months	6 months	6 months	12 months	12 months
Sales growth, %	1.6	27.5	1.9	27.9	0.9	20.7
Growth in operating profit, %	-6.5	85.3	-5.1	98.8	-2.3	36.5
Growth in profit after financial items, %	-6.4	88.1	-2.4	104.2	-1.1	40.9
Operating margin, %	9.2	10.0	8.6	9.3	9.8	10.1
Profit margin, %	8.5	9.2	8.1	8.4	9.1	9.3
Liquid ratio, %	32	32	32	32	32	46
Net debt/equity ratio, %	82	108	82	108	82	78
Equity/assets ratio, %	38	32	38	32	38	38
Capital employed, MSEK	2 687	2 598	2 687	2 598	2 687	2 723
Return on capital employed, %	13.5	14.6	12.1	14.3	14.2	15.6
Return on equity, %	18.2	23.1	16.8	21.2	21.2	22.1
Net debt, MSEK	1088	1206	1088	1206	1088	1040
Gross investments in fixed assets, MSEK	46.5	23.1	88.4	52.1	146.5	110.2
Net investments in fixed assets, MSEK	46.5	23.1	88.4	52.1	146.5	110.2
Depreciation of fixed assets, MSEK	28.7	22.5	55.8	46.8	104.1	95.1
Number of employees	2 410	2 307	2 425	2 326	2 377	2 370
Equity per share, SEK	35.06	29.56	35.06	29.56	35.06	35.13
No. of outstanding shares, thousands	37 863	37 836	37 863	37 836	37 863	37 836

CHANGE IN EQUITY	Attributable to the owners of the parent company
	Share capital	Other contributed capital	Difference on translation	Profit carried forward	Total equity
Equity as per 1 January 2014	65.5	159.4	-86.6	891.5	1 029.8
Net profit for the period				114.0	114.0
Other comprehensive income for the period			65.7	-0.4	65.3
Total comprehensive profit for the period			65.7	113.6	179.3
Performance share program				0.9	0.9
Dividend paid, SEK 2.42 per share				-91.4	-91.4
Equity as per 30 June 2014	65.5	159.4	-20.9	914.6	1 118.6
Equity as per 1 January 2015	65.5	159.4	37.2	1 067.1	1.329.2
Net profit for the period				111.9	111.9
Other comprehensive income for the period			-1.2		-1.2
Total comprehensive profit for the period			-1.2	111.9	110.7
Performance share program				1.1	1.1
Dividend paid, SEK 3.00 per share				-113.5	-113.5
Equity as per 30 June 2015	65.5	159.4	36.0	1 066.6	1 327.5

PARENT COMPANY

INCOME STATEMENT	2015	2014	2015	2014	2014/15	2014
	Apr-Jun	Apr-Jun	Jan - Jun	Jan - Jun	Jul - Jun	Jan- Dec
	3 months	3 months	6 months	6 months	12 months	12 months
Net sales	0.7	0.8	1.5	1.8	16.1	16.4
Selling expenses	-0.7	-1.4	-1.5	-2.4	-3.4	-4.3
Administrative expenses	-5.7	-8.0	-13.4	-14.0	-41.3	-41.9
Operating profit	-5.7	-8.6	-13.4	-14.6	-28.6	-29.8
Income from shares in subsidiaries	-	-	49.5	26.5	169.5	146.5
Financial items	1.2	-1.2	12.1	-1.1	8.8	-4.4
Profit after financial items	-4.5	-9.8	48.2	10.8	149.7	112.3
Tax allocation reserve	-	-	-	-	21.4	21.4
Group contributions received	-	-	-	-	120.0	120.0
Tax	2.4	-	-	-	-24.0	-24.0
Net profit	-2.1	-9.8	48.2	10.8	267.1	229.7

BALANCE SHEET	30 Jun 2015	30 Jun 2014	31 Dec 2014
Financial fixed assets	1 963.1	1 754.3	2 028.6
Other non interest-bearing current assets	19.9	4.4	14.6
Cash and bank balances	0.1	41.2	23.7
Total assets	1 983.1	1 799.9	2 066.9
Equity	489.1	333.7	554.6
Untaxed reserves	8.6	30.0	8.6
Long-term interest-bearing liabilities	1 173.1	1 292.3	1 246.7
Long-term non interest-bearing liabilities	1.7	1.7	1.7
Short-term interest-bearing liabilities	288.0	128.5	213.7
Short-term non interest-bearing liabilities	22.6	13.7	41.6
Total equity and liabilities	1 983.1	1 799.9	2 066.9

CHANGE IN EQUITY	Share capital	Statutory reserve	Profit carried forward	Total equity
Equity as at 1 January 2014	65.5	159.4	188.5	413.4
Performance share program			2.9	2.9
Net profit for the period			229.7	229.7
Dividend paid, SEK 2.42 per share			-91.4	-91.4
Equity as at 31 December 2014	65.5	159.4	329.7	554.6
Performance share program			-0.2	-0.2
Net profit for the period			48.2	48.2
Dividend paid, SEK 3.00 per share			-113.5	-113.5
Equity as at 30 June 2015	65.5	159.4	264.2	489.1

Earnings per share

KEY RATIOS AND DATA PER SHARE

					2014/15 Jul-Jun
	2011	2012	2013	2014	12 months
Net sales. MSEK	3 023	3 085	3 095	3 736	3 771
Operating profit, MSEK	318	252	278	379	370
Profit after financial items, MSEK	286	214	247	348	344
Earnings per share, SEK	5.51	4.20	4.83	6.90	6.85
Sales growth, %	20.6	2.1	0.3	20.7	0.9
Growth in operating profit, %	107.7	-20.8	10.3	36.5	-2.3
Growth in profit after financial items, %	112.8	-25.3	15.5	40.9	-1.1
Operating margin, %	10.5	8.2	9.0	10.1	9.8
Net debt/equity ratio, %	113	94	86	78	82
Equity/assets ratio, %	31	35	37	38	38
Capital employed, MSEK	2 145	2 058	2 163	2 723	2 687
Return on capital employed, %	16.2	12.2	13.3	15.6	14.2
Return on equity, %	26.6	17.8	18.7	22.1	21.2
Net debt, MSEK	975	874	885	1 040	1 088
Net investments in fixed assets, MSEK	66	92	65	110	147
Depreciation of fixed assets, MSEK	89	85	89	95	104
Number of employees	2 228	2 192	2 204	2 370	2 377