Quarterly Report • May 7, 2014
Quarterly Report
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Sweco is the Nordic region's leading consultancy for sustainable urban development. Our 9,000 engineers, architects and environmental experts develop value-creating solutions for our clients and for society. Sweco is among the ten largest consulting engineering companies in Europe and annually conducts projects in 80 countries throughout the world. The company has yearly sales of approximately SEK 9 billion and is listed on Nasdaq OMX Stockholm AB.
Net sales increased 21 per cent to SEK 2,321.7 million (1,917.6), due chiefly to the acquisition of Vectura.
Operating profit totalled SEK 211.6 million (134.0). Calendar effects had a positive year-on-year impact of 10 working hours, contributing approximately SEK 43 million to profit improvement. Increased order volumes in Finland and the acquisition of Vectura in Sweden also contributed to the improvement.
The billing ratio for the group was up 1.0 percentage point year-on-year. Finland and Central Europe in particular saw significantly improved order volumes. Order volumes in Norway were essentially unchanged, while volumes in Sweden decreased slightly.
The billing ratio was somewhat lower as compared with the final quarter of 2013. This is due to normal seasonal variations as well as the cautious start to the year.
Amortisation of acquisition-related intangible assets totalled SEK 13.8 million (10.1). Operating profit before amortisation and impairments of acquisitionrelated intangible assets (EBITA) totalled SEK 225.4 million (144.1).
Integration costs for Vectura totalled SEK 8.5 million and were charged to the Group-wide segment.
Profit was charged with costs for acquisition-related activities totalling SEK 1.5 million (0.1).
The start of the year was cautious and the market in general was unchanged. There are no clear signs of significant improvement.
The variations between markets have decreased. Demand remains stable in Sweden. The Norwegian market shows signs of weakening. The market for building-related services remains satisfactory in Finland. Markets in Central Europe remain weak.
Demand for Sweco's services is stable overall and largely follows the general economic trend in Sweco's submarkets, with some degree of lag.
| Key ratios | Jan-Mar 2014 | Jan-Mar 2013 | Apr 2013 – Mar 2014 |
Full-year 2013 |
|---|---|---|---|---|
| Net sales, SEK M | 2,321.7 | 1,917.6 | 8,569.1 | 8,165.0 |
| Organic growth, % | 4 | -2 | 1 | |
| Acquisition-driven growth, % | 18 | 4 | 9 | |
| EBITA, SEK M | 225.4 | 144.1 | 735.2 | 653.9 |
| Margin, % | 9.7 | 7.5 | 8.6 | 8.0 |
| Operating profit (EBIT), SEK M | 211.6 | 134.0 | 635.9 | 558.3 |
| Margin, % | 9.1 | 7.0 | 7.4 | 6.8 |
| Profit after tax, SEK M | 143.9 | 102.2 | 421.3 | 379.6 |
| Earnings per share, SEK | 1.57 | 1.11 | 4.58 | 4.11 |
| Billing ratio, % | 74.0 | 73.0 | 74.4 | 74.2 |
| Number of normal working hours | 494 | 484 | 1,977 | 1,967 |
| Number of employees | 8,450 | 7,550 | 8,139 | 7,917 |
The acquisition of Tocoman Services OY, with 26 employees, was finalised in Finland. Tocoman specialises in cost and volume calculations.
Alfakonsult AB, with 21 employees, was acquired in Sweden. Alfakonsult is a consultancy in the logistics area.
The divestment of subsidiary Lenvodokanalproekt, with 98 employees, was completed in Russia.
The acquisition of Metro Arkitekter, with 30 employees, was finalised after the end of the reporting period.
The Finnish company Savon Controlteam OY, with 23 employees, was acquired in April.
Operations in the Vectura Traffic Measuring unit, with 22 employees, were sold to Sensebit AB in April. The sale had no impact on profit.
Group cash flow from operating activities totalled SEK 144.3 million (65.8) during the first quarter.
Interest-bearing net debt totalled SEK 1,218.6 million (378.7). The net debt/equity ratio was 68.1 per cent (22.0) and the net debt/EBITDA ratio was 1.4 times (0.5).
In conjunction with the divestment of Lenvodokanalproekt in Russia, historical translation differences on foreign operations totalling SEK 8.0 million were transferred and charged to Financial Items. This item is not part of operating activities. The transfer has no effect on comprehensive income, equity or cash flow.
As of 14 February Sweco Group's executive team is comprised of the CEO, CFO, business area presidents and the heads of group staffs for HR, legal and communication.
Sweco International is a group-wide function as of 1 January 2014 and reports directly to the CEO. The function is headed by Kaj Möller and is responsible for co-ordinating export operations for the entire group.
In June 2013 Sweco signed an agreement with the Swedish government to acquire Vectura, which has 1,200 employees. The transaction was finalised on 31 July and Vectura has been consolidated into Sweco since 1 August.
Realised synergies contributed approximately SEK 20 million to profit during the quarter (EBITA). The previous assessment of synergies totalling SEK 70 million for full-year 2014 are therefore expected to be achieved. The assessment remains in place for synergies totalling SEK 90 million as of 2015.
Integration costs totalled SEK 8.5 million during the quarter. Aggregate integration costs total SEK 61.5 million. The previous assessment remains in place for total integration costs of SEK 65 million.
Vectura is fully integrated with Sweco Sweden as of 1 January 2014. The business is run under Sweco's brand and in a new organisation along with corresponding units from Sweco Sweden. Due to the new organisation Vectura's sales cannot be reported separately.
Sales increased 32 per cent to SEK 1,465.8 million, due primarily to the acquisition of Vectura.
Operating profit totalled SEK 153.0 million (112.1). A calendar effect of +4 hours impacted profit by SEK 8 million.
The market situation is by and large unchanged from the previous quarter. Demand remains strong in the mining sector, and the market for construction and real estate is positive. The market for energyrelated services is cautious. Demand within the industry-related sector is weak but showed signs of improvement towards the end of the period.
The National Transport Plan guarantees good medium-term growth for the infrastructure market, while project delays have slowed activity in the short term.
Sweco was named Sweden's fourth most attractive employer among engineering students in Universum's Company Barometer, and the industry leader among consulting engineering companies.
Alfakonsult AB, with 21 employees, was acquired during the quarter. Alfakonsult AB is one of Scandinavia's leading logistics consulting companies.
Sweco signed an agreement to acquire Metro Arkitekter AB, with 30 employees. Metro focuses mainly on infrastructure. The takeover was concluded after the end of the period.
An agreement was signed with Sensebit AB for the sale of the Traffic Measuring unit, with 22 employees. The divestment was concluded in April.
Sweco was commissioned by Siemens during the quarter to modernise the Oskarshamn 2 nuclear facility to extend its useful life from 40 to 60 years. Sweco is responsible for measurement technology and project management.
Sweco will analyse prospects for a new locomotive shop for LKAB. The project covers structural and construction engineering, building service systems, fire, tracks and electrical engineering.
Sweco's architects will design a new office park of top international standard in the Chinese city of Jinan. The office park will be comprised of 800,000 sq. metres of offices, hotels and premises.
Sweco has been engaged for planning, inspection and advisory services for the Söderås Line, which will improve the reliability and capacity of the freight line through Skåne.
| Net sales and profit |
Jan-Mar 2014 |
Jan-Mar 2013 |
|---|---|---|
| Net sales, SEK M | 1,465.8 | 1,114.0 |
| Organic growth, % |
1 | 2 |
| Acquisition- driven growth, % |
31 | 0 |
| Operating profit, SEK M |
153.0 | 112.1 |
| Operating margin, % |
10.4 | 10.1 |
| Number of full-time employees |
4,608 | 3,509 |
Sweco Sweden is the country's leading consulting engineering company and the Group's largest business area, with close to 5,000 employees in approximately 50 locations. Operations include architecture, structural and construction engineering, building service systems, infrastructure, water and environment, industrial engineering, project management, energy systems, IT for urban development and societal analysis and strategy.
Sweco Norway had sales of SEK 487.4 million (457.0) and operating profit of SEK 54.8 million (27.6).
The operating profit improvement and organic growth were mainly attributable to the greater number of hours worked as a result of Easter falling in the second quarter this year, as opposed to the first quarter in 2013. The year-on-year calendar effect of +40 hours had a positive impact on income and profit of approximately SEK 35 million.
Growth in the Norwegian economy was subdued during the final quarter of 2013. Sweco's house construction and energy submarkets in particular experienced a slowdown, resulting in a year-on-year decrease in the billing ratio during the first quarter of 2014.
The infrastructure market is characterised by largescale investment plans in roads and railways during the next few years. Several new road projects were started during the quarter and additional projects will be commenced during the year. Meanwhile, following the change of government in Norway, planned projects will be delayed in the short term due to new priorities in the infrastructure plan.
In the energy market, major investments are being made in electricity transmission and distribution, while investments in electricity production continue to decline due to low electricity prices.
Sweco Norway's new assignments during the first quarter include a commission to design three bridges on the E6 motorway between Brattåsen and Lien. The project includes a feasibility study for the construction plan.
Sweco will design an upper secondary school with an environmental profile in Voss, and will conduct a concept study to evaluate various alternatives for traversing the Oslo fjord for the Norwegian Road Authority.
Sweco was also made responsible for HVAC and electronics for two 8,000 sq. m. buildings being constructed in the Byfjord office park in Stavanger.
| Net sales and profit |
Jan-Mar 2014 |
Jan-Mar 2013 |
|---|---|---|
| Net sales, SEK M | 487.4 | 457.0 |
| Organic growth, % |
14 | -6 |
| Acquisition driven growth, % |
0 | 2 |
| Operating profit, SEK M |
54.8 | 27.6 |
| Operating' margin, % |
11.2 | 6.0 |
| Number of full-time employees |
1,214 | 1,182 |
Sweco is one of Norway's leading engineering consultancies, with more than 1,200 employees. The Norwegian business area offers services primarily in the areas of energy, structural and construction engineering, building service systems, infrastructure, water and environment and industrial engineering.
Sweco Finland's sales increased to SEK 355.5 million (316.4), representing growth of 12 per cent. The growth was mainly organic.
Operating profit improved to SEK 27.0 M (16.3). The increase was chiefly attributable to an improved billing ratio within industrial engineering operations following capacity adjustments. Other operations also reported improved order volumes. There were no calendar effects during the quarter.
The Finnish economy has shifted from a long drawn-out recession to weak growth. A year-on-year improvement in demand for Sweco's services was also seen at the start of the year.
Demand for construction- and property-related services remains satisfactory and essentially unchanged from the previous quarter.
There were more inquiries for industrial consulting services during the quarter, while some concrete investment decisions have been delayed and price competition is fierce. The markets for infrastructure, energy and environment/water services remain challenging.
Savon Controlteam Oy, with 23 employees, was acquired after the end of the period. The company specialises in consulting services for the finishing and renovation of existing buildings.
Approximately 20 employees were temporality laid off during the first quarter. This represents a reduction of 15 employees as compared to the previous quarter.
Assignments won by Sweco during the first quarter include responsibility for the preliminary design of the Balthasar project, an area of approximately 25,000 sq. m. in Lauttasaari, outside Helsinki. The project includes the construction of four new residential properties and an underground garage.
In Helsinki, an old office building is being rebuilt as a completely new, 37,000 sq. m. hotel. Sweco is responsible for site supervision, HVAC planning and structural and construction engineering.
| Net sales and profit |
Jan-Mar 2014 |
Jan-Mar 2013 |
|---|---|---|
| Net sales, SEK M | 355.5 | 316.4 |
| Organic growth, % |
7 | 0 |
| Acquisition driven growth, % |
2 | 24 |
| Operating profit, SEK M |
27.0 | 16.3 |
| Operating margin, % |
7.6 | 5.1 |
| Number of full-time employees |
1,804 | 1,826 |
Sweco Finland is one of the country's largest consulting engineering companies, with around 1,900 employees. The business area chiefly provides services focused on structural and construction engineering, building service systems, energy, environment, industrial engineering and project management.
Sales for Sweco Central Europe fell to SEK 57.9 million (70.4). The decrease was mainly due to the restructuring of the Russian and Polish operations and the sale of the Russian operation.
Operating profit totalled SEK 0.2 million (-6.8), with the improvement primarily attributable to Poland and Russia.
The Central European market is still impacted by the effects of the 2008 financial crisis. Investment levels are very low in most of the countries in the business area and, accordingly, demand for Sweco's services is weak. Demand is decreasing in Estonia and Russia, and the geopolitical conflict in Ukraine is creating additional uncertainty.
Despite this, there are early signs of improved demand in the Czech Republic, Poland and Lithuania, Sweco's largest markets in the region. Preparations have also commenced for projects financed by the EU's structural funds for 2014-2020, although the tendering processes for these projects are not expected to begin on a large scale before the end of the year.
The Russian subsidiary Sweco Lenvodokanalproekt, with 98 employees and 2013 annual sales of SEK 26.4 million, was sold in January.
Measures are proceeding in Poland to further optimise operations and reduce administrative costs.
In the Czech Republic, Sweco has begun work on the extensive modernisation project of the waste water treatment plant in Prague.
| Net sales and profit |
Jan-Mar 2014 |
Jan-Mar 2013 |
|---|---|---|
| Net sales, SEK M | 57.9 | 70.4 |
| Organic growth, % |
-8 | -24 |
| Acquisition driven growth, % |
-8 | 0 |
| Operating profit, SEK M |
0.2 | -6.8 |
| Operating margin, % |
0.4 | -9.7 |
| Number of full-time employees |
807 | 1,017 |
Sweco Central Europe has approximately 800 employees and operates in Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Russia and Bulgaria.
Investments in equipment totalled SEK 20.0 million (21.6) and were primarily attributable to computers and other IT investments. Depreciation of equipment totalled SEK 32.7 million (24.8) and amortisation of intangible assets totalled SEK 14.2 million (12.3).
Purchase consideration paid to acquire companies totalled SEK 46.1 million (19.7) and had an impact of SEK -36.1 million (-8.9) on Group cash and cash equivalents.
Purchase consideration for divestment companies totalled SEK 24.3 million (-) and had a positive impact of SEK 22.0 million (-) on Group cash and cash equivalents.
Dividends totalling SEK 295.8 million (296.2) were distributed to Sweco AB shareholders after the end of the reporting period.
Parent Company net sales totalled SEK 79.3 million (59.9) and were attributable to intra-group services. The Parent Company posted a loss after net financial items of SEK 14.1 million (loss: 7.7). Investments in equipment totalled SEK 4.0 million (3.8) and cash and cash equivalents at the end of the period totalled SEK 0.0 million (46.0).
Sweco is listed on NASDAQ OMX Stockholm. The share price of the Sweco B share was SEK 108.25 at the end of the period, a 2 per cent year-on-year increase. The OMX Stockholm General Index rose by 2 per cent over the same period.
In accordance with the request of the shareholders, 4,200 A shares were converted into B shares as stipulated by the conversion provision in Sweco's Articles of Association.
Sweco repurchased 88,083 shares during the year for a total of SEK 9.2 million, corresponding to SEK 104.51 per share. Sweco thus holds 492,048 B shares as of 31 March.
The total number of shares at the end of the period was 91,516,847: 9,368,164 A shares and 82,148,683 B shares. After the allowance for Treasury shares, the total number of outstanding shares at year-end was 91,024,799: 9,368,164 A shares and 81,656,635 B shares.
Share savings programme 2014 – Pursuant to the Board's proposal, the 2014 AGM resolved to introduce a long-term share savings scheme for up to 80 senior executives and other key people in the Sweco Group.
Share bonus programme 2014 – Pursuant to the Board's proposal, the 2014 AGM resolved to introduce a share bonus programme geared toward employees in Sweden. The share bonus programme will replace the current cash bonus programme for employees in Sweden.
During the quarter, the definition of "billing ratio" was harmonised throughout the Group. Consequently, the billing ratio will be nominally higher than in the past. The comparative figures in this report are stated in accordance with the new, harmonised definition.
Sweco complies with the International Financial Reporting Standards (IFRS) and interpretive statements from the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the EU. This interim report was prepared in accordance with IAS 34, Interim Reporting; the Swedish Annual Accounts Act; and the Swedish Financial Reporting Board's RFR 2, Reporting for Legal Entities. As of 1 January 2014, Sweco applies IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities.
The accounting-related amendment is that the Group's joint venture, Sweco Soyuz Engineering, applies the equity method since the formerly applied proportional method is no longer a valid accounting option. Accordingly, the comparative periods have been adjusted by transferring the company's earnings of SEK 1.9 million for the full-year and SEK 1.0 million for the quarter to Net Financial Items, and transferring the company's net assets of SEK 4.1 million for the full-year and SEK 3.3 million for the quarter to Financial Assets. The Group's comprehensive income and equity were thus not affected by the amended accounting principles. Cash flow was adjusted marginally.
In all other respects, the Group applied the same accounting and valuation principles as those described in Note 1 of the 2013 annual report. In this interim report, amounts in brackets refer to the corresponding period of the previous year.
Significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks associated with the general economic trend and investment spending in various markets, the capacity to attract and retain skilled personnel and the effects of political decisions. The Group is also exposed to various types of financial risks, such as foreign currency, interest rate and credit risks. No significant risks are deemed to have arisen apart from the risks detailed in Sweco's 2013 annual report (page 82, Risk Management).
The number of normal working hours in 2014, based on the 12-month volume-weighted business mix as of Q3 2013 (pro forma acquisitions) is broken down as follows:
| Quarter 1: | 494 (484) | +10 |
|---|---|---|
| Quarter 2: | 461 (477) | -16 |
| Quarter 3: | 525 (523) | +2 |
| Quarter 4: | 483 (483) | 0 |
| Total 2014: | 1,963 (1,967) | -4 |
Interim report January-June 18 July 2014 Interim report January-September 23 October 2014 Year-end report 2014 12 February 2015
Stockholm, 7 May 2014
Tomas Carlsson President and CEO
This report has not been audited.
Tomas Carlsson, President and CEO Phone: +46 8 695 66 60 / +46 70 552 92 75 [email protected]
Jonas Dahlberg, CFO Phone: +46 8 695 63 32 / +46 70 347 23 83 [email protected]
Bo Jansson, Senior Vice President, Head of IR Phone: +46 8 695 66 06 / +46 73 412 66 06 [email protected]
SWECO AB (publ) Corp. Reg. No. 556542-9841 Gjörwellsgatan 22, PO box 34044 SE-100 26 Stockholm, Sweden Phone: +46 8 695 60 00, Fax +46 8 695 66 10 E-mail: [email protected] www.swecogroup.com
| Key ratios1) | Jan-Mar 2014 | Jan-Mar 2013 | Apr 2013 - Mar 2014 |
Full-year 2013 |
|---|---|---|---|---|
| Profitability | ||||
| EBITA margin, % | 9.7 | 7.5 | 8.6 | 8.0 |
| Operating margin (EBIT), % | 9.1 | 7.0 | 7.4 | 6.8 |
| Profit margin, % | 8.2 | 7.0 | 6.8 | 6.4 |
| Revenue growth | ||||
| Organic growth, % | 4 | -2 | 1 | |
| Acquisition-driven growth, % | 18 | 4 | 9 | |
| Currency effects, % | -1 | -1 | -1 | |
| Total growth, % | 21 | 1 | 9 | |
| Operational key ratios | ||||
| Billing ratio, % | 74.0 | 73.0 | 74.4 | 74.2 |
| Normal working hours | 494 | 484 | 1,977 | 1,967 |
| Average number of full-time employees | 8,450 | 7,550 | 8,139 | 7,917 |
| Debt | ||||
| Net debt, SEK M | 1,218.6 | 378.7 | 1,323.6 | |
| Interest-bearing debt, SEK M | 1,403.6 | 703.5 | 1,642.3 | |
| Financial strength | ||||
| Net debt/Equity, % | 68.1 | 22.0 | 81.1 | |
| Net debt/EBITDA, x | 1.4 | 0.5 | 1.7 | |
| Equity/Assets ratio, % | 29.0 | 34.9 | 27.2 | |
| Available cash and cash equivalents, SEK M2) | 1,128.5 | 918.9 | 1,022.5 | |
| Return | ||||
| Return on equity, % | 24.1 | 25.3 | 22.9 | |
| Return on capital employed, % | 22.7 | 25.1 | 19.7 | |
| Share data | ||||
| Earnings per share, SEK | 1.57 | 1.11 | 4.58 | 4.11 |
| Equity per share, attributable to the sharehold ers of the parent company, SEK M |
19.48 | 18.61 | 17.75 | |
| Number of outstanding shares end of period | 91,024,799 | 91,135,382 | 91,112,882 | |
| Number of class B treasury shares | 492,048 | 381,465 | 403,965 |
1) Key ratio definitions can be found on Sweco's website and in Sweco's 2013 annual report. 2) Including unutilised credit.
| Income statement SEK M |
Jan-Mar 2014 | Jan-Mar 2013 | Apr 2013 – Mar 2014 |
Full-year 2013 |
|---|---|---|---|---|
| Net sales | 2,321.7 | 1,917.6 | 8,569.1 | 8,165.0 |
| Other operating income | 0.4 | - | 1.9 | 1.5 |
| Other external expenses | -504.7 | -417.7 | -2,031.2 | -1,944.2 |
| Personnel costs | -1,557.0 | -1,328.4 | -5,661.9 | -5,433.3 |
| EBITDA | 260.4 | 171.5 | 877.9 | 789.0 |
| Amortisation/depreciation and impairments | -35.0 | -27.4 | -142.7 | -135.1 |
| EBITA | 225.4 | 144.1 | 735.2 | 653.9 |
| Amortisation and impairment of acquisition related intangible assets |
-13.8 | -10.1 | -99.3 | -95.6 |
| Operating profit (EBIT) | 211.6 | 134.0 | 635.9 | 558.3 |
| Net financial items | -20.8 | 0.0 | -52.8 | -32.0 |
| Profit before tax | 190.8 | 134.0 | 583.1 | 526.3 |
| Income tax | -46.9 | -31.8 | -161.8 | -146.7 |
| PROFIT FOR THE PERIOD | 143.9 | 102.2 | 421.3 | 379.6 |
| Attributable to: | ||||
| Parent company shareholders, SEK M | 143.3 | 101.0 | 417.2 | 374.9 |
| Non-controlling interests, SEK M | 0.6 | 1.2 | 4.1 | 4.7 |
| Earnings per share attributable to parent com pany shareholders, SEK |
1.57 | 1.11 | 4.58 | 4.11 |
| Average number of shares before and after dilution |
91,046,054 | 91,135,382 | 91,111,175 | 91,133,507 |
| Dividend per share, SEK | - | - | - | 3.25 |
| Consolidated income statement and other | Apr 2013 – | |||
|---|---|---|---|---|
| comprehensive income, SEK M | Jan-Mar 2014 | Jan-Mar 2013 | Mar 2014 | Full-year 2013 |
| Profit for the period | 143.9 | 102.2 | 421.3 | 379.6 |
| Items that will not be reversed in the income statement |
||||
| Revaluation of defined benefit pension, net after tax1) |
- | - | -53.0 | -53.0 |
| Items that may subsequently be reversed in the income statement |
||||
| Translation differences | 12.5 | -50.8 | 24.6 | -38.7 |
| Translation differences transferred to profit for the year |
8.0 | - | 8.0 | - |
| COMPREHENSIVE INCOME FOR THE PERIOD |
164.4 | 51.4 | 400.9 | 287.9 |
| Profit for the period attributable to: | ||||
| Parent company shareholders, SEK M | 163.9 | 50.9 | 395.4 | 282.4 |
| Non-controlling interests, SEK M | 0.5 | 0.5 | 5.5 | 5.5 |
| 1) Tax on revaluation of defined benefit pen sions, SEK M |
- | - | 18.8 | 18.8 |
| Cash flow statement SEK M |
Jan-Mar 2014 | Jan-Mar 2013 | Apr 2013 – Mar 2014 |
Full-year 2013 |
|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital and tax paid |
248.6 | 156.1 | 832.8 | 740.3 |
| Tax paid | -116.2 | -71.8 | -271.5 | -227.1 |
| Changes in working capital | 11.9 | -18.5 | 13.1 | -17.3 |
| Cash flow from operating activities | 144.3 | 65.8 | 574.4 | 495.9 |
| Cash flow from investing activities | -34.2 | -30.3 | -1,001.5 | -997.6 |
| Cash flow from financing activities | -253.1 | -51.1 | 270.0 | 472.0 |
| CASH FLOW FOR THE PERIOD | -143.0 | -15.6 | -157.1 | -29.7 |
| Balance sheet SEK M |
2014-03-31 | 2013-03-31 | 2013-12-31 |
|---|---|---|---|
| Goodwill | 2,115.8 | 1,384.2 | 2,088.4 |
| Other intangible assets | 147.8 | 131.1 | 150.6 |
| Property, plant and equipment | 388.4 | 282.7 | 394.7 |
| Financial assets | 56.8 | 43.0 | 55.9 |
| Current assets excl. cash and cash equivalents | 3,284.4 | 2,757.0 | 2,994.5 |
| Cash and cash equivalents excl. short-term investments | 185.0 | 324.8 | 318.7 |
| TOTAL ASSETS | 6,178.2 | 4,922.8 | 6,002.8 |
| Equity attributable to parent company shareholders | 1,773.1 | 1,696.1 | 1,617.5 |
| Non-controlling interests | 15.6 | 22.3 | 15.1 |
| Total equity | 1,788.7 | 1,718.4 | 1,632.6 |
| Non-current liabilities | 1,528.2 | 808.2 | 1,638.4 |
| Current liabilities | 2,861.3 | 2,396.2 | 2,731.8 |
| TOTAL EQUITY AND LIABILITIES | 6,178.2 | 4,922.8 | 6,002.8 |
| Pledged assets | - | 1.8 | - |
| Contingent liabilities | 197.5 | 180.7 | 188.9 |
| Changes in equity SEK M |
Jan–Mar 2014 | Jan–Mar 2013 | ||||
|---|---|---|---|---|---|---|
| Equity attributable to parent company share holders |
Non controlling interests |
Total equity |
Equity attributable to parent company share holders |
Non controlling interests |
Total equity |
|
| Equity, opening balance | 1,617.5 | 15.1 | 1,632.6 | 1,651.7 | 22.3 | 1,674.0 |
| Comprehensive income for the period | 163.9 | 0.5 | 164.4 | 50.9 | 0.5 | 51.4 |
| Transfer to shareholders | - | -0.1 | -0.1 | - | -0.5 | -0.5 |
| Divestment of non-controlling interests | - | 0.1 | 0.1 | - | - | - |
| Buy-back of treasury shares | -9.2 | - | -9.2 | -7.1 | - | -7.1 |
| Share savings schemes | 0.9 | - | 0.9 | 0.6 | - | 0.6 |
| EQUITY, CLOSING BALANCE | 1,773.1 | 15.6 | 1,788.7 | 1,696.1 | 22.3 | 1,718.4 |
During the period, Sweco acquired Tocoman Services Oy and Alfakonsult AB. The acquired businesses have an aggregated total of 47 employees. Purchase consideration paid totalled SEK 46.1 million and had a negative impact of SEK 36.1 million on Group cash and cash equivalents. The acquisitions impacted the consolidated balance sheet as detailed in the table below. During the period the acquired companies contributed SEK 10.4 million in sales and SEK 1.3 million in operating profit (EBIT). If all of the companies had been owned as of 1 January 2014 they would have contributed approximately SEK 17 million in sales and about SEK 2 million in operating profit. Transaction costs for the acquisitions are recognised in operating profit and totalled SEK 0.6 million. Aggregated transaction costs for these acquisitions during this and previous periods total SEK 0.6 million.
| Acquisitions, SEK M | |
|---|---|
| Intangible assets | 43.7 |
| Property, plant and equipment | 0.7 |
| Current assets | 17.1 |
| Deferred tax | -1.9 |
| Other current liabilities | -13.5 |
| Total purchase consideration | 46.1 |
| Outstanding purchase price commitments | -4.4 |
| Purchase price paid for acquisitions in previous years | 1.8 |
| Cash and cash equivalents in acquired companies | -7.4 |
| DECREASE ON GROUP CASH AND CASH EQUIVALENTS | 36.1 |
During the period Sweco sold Sweco Lenvodokanalproekt, which has 98 employees, and UAB FMC Probalt, which has 13 employees. The companies contributed SEK 0.3 million in sales and an operating loss of SEK 0.1 million. The sales generated capital gains of SEK 0.4 million and had a positive impact on the Group's cash and cash equivalents of SEK 22.0 million. The divestment impacted the consolidated balance sheet as detailed in the table below.
| Divestments, SEK M | |
|---|---|
| Intangible assets | 14.7 |
| Property, plant and equipment | 0.3 |
| Current assets | 18.9 |
| Other current liabilities | -10.1 |
| Non-controlling interests | 0.1 |
| Capital gain recognised on divestiture | 0.4 |
| Total purchase consideration | 24.3 |
| Cash and cash equivalents in acquired companies | -2.3 |
| INCREASE ON GROUP CASH AND CASH EQUIVALENTS | 22.0 |
The Group's financial assets measured at fair value totalled SEK 12.4 million (17.3). The derivative instruments are forward currency contracts, the fair values of which are determined based on listed prices for forward currency contracts on the balance sheet date (Level 2). The fair value of unlisted financial assets is determined through market valuation techniques (observable market inputs) such as recent transactions, listed prices of similar instruments and discounted cash flows. In the event that no reliable inputs are available for determining fair value, financial assets are reported at acquisition value (Level 3). There were no transfers between levels during the period.
| Quarterly summary | 2014 Q1 |
2013 Q41) |
2013 Q31) |
2013 Q21) |
2013 Q11) |
2012 Q41) |
2012 Q31) |
2012 Q21) |
2012 Q11) |
|---|---|---|---|---|---|---|---|---|---|
| Net sales, SEK M | |||||||||
| Sweco Sweden | 1,465.8 | 1,537.8 | 1,103.0 | 1,139.1 | 1,114.0 | 1,191.9 | 866.4 | 1,071.6 | 1,090.2 |
| Sweco Norway | 487.4 | 486.6 | 377.6 | 493.3 | 457.0 | 466.0 | 356.2 | 448.7 | 482.3 |
| Sweco Finland | 355.5 | 346.2 | 293.1 | 336.6 | 316.4 | 344.8 | 282.9 | 357.5 | 263.9 |
| Sweco Central Europe | 57.9 | 91.6 | 71.4 | 68.0 | 70.4 | 113.4 | 68.4 | 95.3 | 98.9 |
| Group-wide, eliminations, etc. |
-44.9 | -26.2 | -35.4 | -35.3 | -40.2 | -30.2 | -25.0 | -37.8 | -25.7 |
| TOTAL GROUP | 2,321.7 | 2,436.0 | 1,809.7 | 2,001.7 | 1,917.6 | 2,085.9 | 1,548.9 | 1,935.3 | 1,909.6 |
| Operating profit, SEK M | |||||||||
| Sweco Sweden | 153.0 | 172.8 | 79.1 | 132.0 | 112.1 | 144.0 | 51.7 | 101.5 | 147.6 |
| Sweco Norway | 54.8 | 60.6 | 34.9 | 64.0 | 27.6 | 97.5 | 29.8 | 24.1 | 71.7 |
| Sweco Finland | 27.0 | 9.2 | 26.1 | 17.9 | 16.3 | 25.3 | 36.8 | 40.5 | 33.6 |
| Sweco Central Europe | 0.2 | -1.9 | -5.9 | 1.5 | -6.8 | -1.1 | -6.1 | 0.3 | 2.2 |
| Group-wide, eliminations, etc. |
-9.6 | -49.6 | -16.0 | -14.9 | -5.1 | -24.2 | -1.1 | -5.6 | -12.4 |
| EBITA | 225.4 | 191.1 | 118.2 | 200.5 | 144.1 | 241.5 | 111.1 | 160.8 | 242.7 |
| Acquisition-related amorti sation/depreciation and impairments |
-13.8 | -63.4 | -12.2 | -9.9 | -10.1 | -41.1 | -11.7 | -11.9 | -10.7 |
| TOTAL GROUP (EBIT) | 211.6 | 127.7 | 106.0 | 190.6 | 134.0 | 200.4 | 99.4 | 148.9 | 232.0 |
| Operating margin, % | |||||||||
| Sweco Sweden | 10.4 | 11.2 | 7.2 | 11.6 | 10.1 | 12.1 | 6.0 | 9.5 | 13.5 |
| Sweco Norway | 11.2 | 12.4 | 9.2 | 13.0 | 6.0 | 20.9 | 8.4 | 5.4 | 14.9 |
| Sweco Finland | 7.6 | 2.7 | 8.9 | 5.4 | 5.1 | 7.4 | 13.0 | 11.3 | 12.7 |
| Sweco Central Europe | 0.4 | -2.0 | -8.2 | 2.2 | -9.7 | -1.0 | -8.9 | 0.3 | 2.3 |
| EBITA | 9.7 | 7.8 | 6.5 | 10.0 | 7.5 | 11.6 | 7.2 | 8.3 | 12.7 |
| Acquisition-related amorti sation/depreciation and impairments |
-0.6 | -2.6 | -0.7 | -0.5 | -0.5 | -2.0 | -0.8 | -0.6 | -0.6 |
| TOTAL GROUP (EBIT) | 9.1 | 5.2 | 5.9 | 9.5 | 7.0 | 9.6 | 6.4 | 7.7 | 12.1 |
1) All quarters in 2012 and 2013 have been restated due to changed accounting principles.
| January-March | Net sales SEK M |
Operating profit SEK M |
Operating margin % |
Number of full-time employees |
|||||
|---|---|---|---|---|---|---|---|---|---|
| Business area | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
| Sweco Sweden | 1,465.8 | 1,114.0 | 153.0 | 112.1 | 10.4 | 10.1 | 4,608 | 3,509 | |
| Sweco Norway | 487.4 | 457.0 | 54.8 | 27.6 | 11.2 | 6.0 | 1,214 | 1,182 | |
| Sweco Finland | 355.5 | 316.4 | 27.0 | 16.3 | 7.6 | 5.1 | 1,804 | 1,826 | |
| Sweco Central Europe | 57.9 | 70.4 | 0.2 | -6.8 | 0.4 | -9.7 | 807 | 1,017 | |
| Group-wide, eliminations, etc.1) | -44.9 | -40.2 | -9.6 | -5.1 | - | - | 17 | 16 | |
| Acquisition-related amortisa tion/depreciation and impair ments |
- | - | -13.8 | -10.1 | - | - | - | - | |
| TOTAL GROUP | 2,321.7 | 1,917.6 | 211.6 | 134.0 | 9.1 | 7.0 | 8,450 | 7,550 |
1) Operating profit for Group-wide is chiefly comprised of the Parent Company loss of SEK -4.7 million (-6.6) and integration costs associated with the Vectura acquisition of SEK -8.5 million (-).
| Parent Company income statement, SEK M | Jan-Mar 2014 | Jan-Mar 2013 | Full-year 2013 |
|---|---|---|---|
| Net sales | 79.3 | 59.9 | 271.4 |
| Operating expenses | -84.0 | -66.5 | -301.0 |
| Operating loss | -4.7 | -6.6 | -29.6 |
| Net financial items | -9.4 | -1.1 | 493.8 |
| Profit/loss after net financial items | -14.1 | -7.7 | 464.2 |
| Appropriations | - | - | 86.7 |
| Profit/loss before tax | -14.1 | -7.7 | 550.9 |
| Tax | - | - | -74.0 |
| PROFIT/LOSS AFTER TAX | -14.1 | -7.7 | 476.9 |
| Parent Company balance sheet, SEK M | Jan-Mar 2014 | Full-year 2013 |
|---|---|---|
| Intangible assets | 4.8 | 5.2 |
| Property. plant and equipment | 29.6 | 28.9 |
| Financial assets | 2,030.9 | 2,031.3 |
| Current assets | 667.9 | 1,624.9 |
| TOTAL ASSETS | 2,733.2 | 3,690.3 |
| Equity | 1,422.2 | 1,445.0 |
| Untaxed reserves | 1.3 | 1.3 |
| Non-current liabilities | 1,219.0 | 1,320.9 |
| Current liabilities | 90.7 | 923.1 |
| TOTAL EQUITY AND LIABILITIES | 2,733.2 | 3,690.3 |
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