Earnings Release • Feb 14, 2013
Earnings Release
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14 February 2013
"2012 was a record year for Sweco. We grew by 25 per cent and improved our operating profit by SEK 128 million. At the same time, we maintained an operating margin of close to 9 per cent. The topperforming business area was Sweco Finland with an operating margin of 11.7 per cent.
"Through the acquisition of FMC Group we created a leading player in Finland and since then we have further strengthened our position in the Finnish market. The acquisition was a key factor behind Sweco's successes in 2012.
"The fourth quarter saw falling demand for services in the housing sector and in certain industrial segments. However, most areas of operation are continuing to enjoy healthy demand.
"Earnings, growth and cash flow for 2012 show that Sweco stands strong even in an economic downturn, which gives us excellent potential to capitalise on the opportunities available in the market. Our growth strategy is unchanged – we will continue our trajectory of profitable growth, both organically and through acquisitions."
The Sweco Group's net sales rose by 25 per cent to SEK 7,503.5 million (5,987.6). Organic growth was 8 per cent and acquisition-driven growth was 17 per cent.
| Profit summary, SEK M |
Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Sweco Sweden | 134.4 | 139.2 | 413.2 | 412.3 |
| Sweco Norway | 76.7 | 45.2 | 190.0 | 125.9 |
| Sweco Finland | 26.7 | 0.3 | 104.8 | 7.3 |
| Sweco Central & Eastern Europe |
0.7 | 5.3 | 6.6 | 1.6 |
| Sweco Russia | -21.2 | 5.9 | -36.0 | 10.3 |
| Sweco Industry | -10.6 | 14.0 | 24.0 | 24.9 |
| Group-wide, etc. | -24.2 | -18.3 | -43.3 | -51.0 |
| Operating profit | 182.5 | 191.6 | 659.3 | 531.3 |
| Consolidated net financial items |
-11.3 | -0.2 | -28.5 | -4.5 |
| Profit before tax | 171.2 | 191.4 | 630.8 | 526.8 |
Operating profit was up by 24 per cent to SEK 659.3 million (531.3). The increase of SEK 128.0 million is explained mainly by the acquisition of FMC Group and higher earnings in Sweco Norway.
Net sales for Sweco Sweden rose by 11 per cent to SEK 3,995.9 million. Essentially all growth was organic. Operating profit was SEK 413.2 million (412.3) and operating margin was 10.3 per cent (11.5).
Net sales for Sweco Norway increased by 22 per cent. Sweco Norway also showed a strong improvement in operating profit, which amounted to SEK 190.0 million (125.9). Operating margin was 11.1 per cent (9.0). The rise in earnings is mainly due to changes in the Norwegian pension plans. The changes contributed SEK 48 million, of which SEK 27 million is estimated to be annually recurring.
Sweco Finland reported an operating profit of SEK 104.8 million (7.3) and an operating margin of 11.7 per cent (7.9). FMC Group, which is part of the business area since 1 February 2012, contributed net sales of SEK 783.4 million, an operating profit of SEK 94.7 million and an operating margin of 12.1 per cent.
The negative earnings development in Russia is explained by a continued weak market in the infrastructure segment. Additional measures are being taken to adapt operations to the current market conditions. Profit for the year includes a net amount of SEK -15.3 million consisting of restructuring charges,
goodwill impairment and reversal of unpaid contingent consideration.
Sweco Industry has shown a solid improvement in profit from operating activities compared to the previous year, mainly owing to higher demand in Finland. Profit for the year includes an amount of SEK -11.5 million pertaining to goodwill impairment.
Employee bonuses were charged to the Sweco Group's earnings in a total amount of SEK 185.5 million (–126.6) including social security expenses and pension costs.
Consolidated profit was negatively affected by acquisition-related costs of SEK 12.8 million (11.5) and amortisation of acquisition-related intangible assets of SEK 45.9 million (22.9) and the abovementioned impairment of goodwill in Sweco Russia and Sweco Industry amounting to SEK 29.5 million (–).
Operating profit before amortisation of acquisitionrelated intangible assets and impairment of goodwill (EBITA) was SEK 734.7 million (554.2) and the margin was 9.8 per cent (9.3).
The billing ratio, including all administrative personnel, was 74.2 per cent (73.9).
The number of normal working hours during 2012 was 1,979 (1,996).
Profit before tax was SEK 630.8 million (526.8). The Group's net financial items amounted to SEK –28.5 million (–4.5), and included foreign exchange effects of SEK –2.6 million (–1.6).
Profit after tax was SEK 459.8 million (374.8).
Return on equity was 28.5 per cent (25.6) and return on capital employed was 32.6 per cent (34.2).
No significant transactions with related parties took place during the year.
Earnings per share amounted to SEK 4.97 (4.11) before dilution and SEK 4.97 (4.11) after dilution.
Investments in equipment totalled SEK 151.0 million (115.7) and referred mainly to office furniture, computers and other IT investments. Depreciation of equipment amounted to SEK 90.8 million (76.6) and amortisation of intangible assets to SEK 55.9 million (31.3).
Purchase consideration paid for the acquisition of companies amounted to SEK 785.7 million (278.6) and had an effect of SEK –539.6 million (–221.3) on the Group's cash and cash equivalents.
The Group's cash flow from operating activities was SEK 414.8 million (513.0).
Cash and cash equivalents amounted to SEK 366.8 million (219.6). Disposable cash and cash equivalents including unutilised bank overdraft facilities at the end of the reporting period totalled SEK 916.5 million (687.8). Interest-bearing debt is reported at SEK 776.1 million (78.7). The net interest-bearing liability was SEK 409.3 million (net receivable of SEK 140.9 million).
During the year, dividends were paid to Sweco AB's shareholders in a total amount of SEK 274.0 million (272.8).
The net debt/equity ratio was 23.9 per cent (–9.4). The equity/assets ratio was 36.6 per cent (46.2).
Starting in 2013, the revised accounting standard IAS 19 will be applied. All in all, changed accounting standards, changed principles for discount rates in Norway and changed pension plans in Norway are expected to have an effect on consolidated equity of SEK -60 million.
Tomas Carlsson took over as the new President and CEO of Sweco on 1 December 2012. He succeeded Mats Wäppling, who left Sweco after six years as President and CEO and nearly ten years as a member of Sweco's Board of Directors. Tomas Carlsson comes most recently from a position as President of NCC Construction Sweden and has worked in the NCC group since 1991. He was born in 1965 and holds a M.Sc.Eng. in Civil Engineering and an Executive MBA.
The number of employees at 31 December 2012 was 7,768 (6,324). The average number of employees in the Group during the year was 7,336 (5,772). In 2012, the Sweco Group gained 1,189 employees through acquisitions. Another 255 employees were added through organic growth during the year.
Net sales rose by 17 per cent to SEK 2,093.5 million (1,786.1). Organic growth was 2 per cent and acquisition-driven growth was 16 per cent. Foreign exchange effects accounted for –1 per cent.
Operating profit reached SEK 182.5 million (191.6) and operating margin was 8.7 per cent (10.7).
The figures for the quarter include changes in the Norwegian pension plans that affected profit in an amount of SEK 48 million, of which SEK 7 million is expected to be quarterly recurring.
Consolidated profit was negatively affected by acquisition-related costs of SEK 0.3 million (7.2), amortisation of acquisition-related intangible assets of SEK 11.6 million (7.5) and impairment of goodwill of SEK 29.5 million (–) pertaining to Sweco Russia and Sweco Industry.
Operating profit before amortisation of acquisitionrelated intangible assets and impairment of goodwill (EBITA) was SEK 223.8 million (199.3) and the operating margin was 10.7 per cent (11.1).
The billing ratio was 74.0 per cent (74.8).
The number of normal working hours in the fourth quarter was 490 (496).
Profit before tax was SEK 171.2 million (191.4). Profit after tax amounted to SEK 114.3 million (129.0).
Cash flow from operating activities was SEK 294.6 million (324.2).
The Parent Company recorded net sales of SEK 214.4 million (80.3), all of which refers to intra-group services. Profit after net financial items was SEK 389.5 million (411.2). Investments in equipment amounted to SEK 10.1 million (1.4) and cash and cash equivalents at the end of the period totalled SEK 0.5 million (60.7).
Sweco is listed on NASDAQ OMX Stockholm. The closing bid price for the Sweco B share at 31 December 2012 was SEK 73, an increase of 27 per cent during the year. The OMX Stockholm General Index rose by 12 per cent over the same period.
At the request of shareholders, 4,012 class A shares were converted to class B shares during the year with the support of the conversion clause in the Articles of Association. The total number of votes thereafter amounts to 17,595,182.3, of which the A shares correspond to 9,381,664 votes and the B shares to 8,213,518.3 votes.
The total number of shares at the end of the year was 91,516,847, of which 9,381,664 were of class A and 82,135,183 were of class B. After deduction of treasury shares, the number of shares outstanding at 31 December 2012 was 91,233,682, of which 9,381,664 were of class A and 81,852,018 were of class B.
The 2012 Annual General Meeting resolved to implement a long-term share savings scheme directed to senior executives in the Sweco Group. Through the share savings scheme, 32 senior executives have acquired some 36,000 shares. In accordance with IFRS 2, the cost of the 2012 Share Savings Scheme is estimated at approximately SEK 5.6 million (including social security expenses) and will be expensed on a straight-line basis over the lock-up period.
In 2011 the Annual General Meeting resolved on a corresponding programme in which more than 31,000 shares were acquired. Under the two share savings schemes, a total of 230,000 shares will be issued if the established goals are met.
During the year Sweco repurchased 281,145 shares for a total of SEK 19.5 million, which is equal to SEK 69.41 per share. Sweco thus held 283,165 class B treasury shares at 31 December 2012. The treasury shares correspond to 0.3 per cent of the total number of shares and 0.2 per cent of the votes.
The engineers, architects and environmental experts at Sweco are working together to contribute to the development of a sustainable society. With around 7,800 employees in 13 countries, the Sweco Group is one of the largest players in Europe. Every year, Sweco carries out projects in some 80 countries worldwide.
Operations are conducted in six business areas: Sweco Sweden, Sweco Norway, Sweco Finland, Sweco Central & Eastern Europe, Sweco Russia and Sweco Industry.
Sweco is well positioned for profitable growth. The Group has market-leading positions in Sweden, Norway and Finland and solid niche positions in several countries in Central and Eastern Europe. Sweco's home markets have generally higher GDP growth and healthier public finances than the European average. With a profitability and financial strength at the top of the industry, Sweco has capacity to grow faster than the market average, both organically and through acquisitions.
Demand for Sweco's services was generally good in the fourth quarter. Towards the end of the period, demand in certain segments was affected by the general economic conditions. A slowdown was noted for building-related services with an emphasis on housing, but also for services in certain industrial segments. Continued positive development is anticipated in the majority of Sweco's service segments, such as the infrastructure, energy and water supply areas.
There are powerful drivers that are boosting long-term demand for consulting engineering services. These are related to urbanisation and rising living standards, which are contributing to a need for infrastructure, industrial production, energy production and construction. At the same time, there are increasingly stringent requirements for sustainable development of society and adaptation to climate change. This is stimulating demand for services in areas like energy efficiency, environmental impact assessments, renewable energy solutions, effective traffic planning,
water supply, wastewater treatment and soil/site remediation.
| Net sales and profit | Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Net sales, SEK M | 1,130.3 | 1,053.2 | 3,995.9 | 3,596.7 |
| Operating profit, SEK M | 134.4 | 139.2 | 413.2 | 412.3 |
| Operating margin, % No. of employees at end |
11.9 | 13.2 | 10.3 | 11.5 |
| of period | 3,395 | 3,202 |
Sweco Sweden is the country's leading provider of consulting engineering services and the Group's largest business area, with around 3,400 employees in some 50 locations. Services are offered in the areas of Architecture, Structural Engineering, Building Service Systems, Infrastructure, Water & Environment, Project Management, Energy Systems, Geographical IT and Institutional Services. Sweco Sweden has extensive project exports to countries in Eastern Europe, Africa, Asia, the Middle East and Latin America.
Market development in the fourth quarter was characterised by a slight weakening, mainly for services in the housing sector. However, demand remains s in most service segments, such as the infrastructure, water supply, energy and geographical IT areas. Interest in Sweco's wide service offering in sustainable urban development has continued to grow and strong long-term demand is anticipated.
In the fourth quarter Sweco won a contract to plan an 11-storey laboratory facility with best possible environmental performance at the New Karolinska Hospital in Solna, Sweden. Sweco was also chosen to modernise the electric power systems at the Ringhals nuclear power plant as part of a safety improvement initiative. In connection with work on the Western Link, the city of Gothenburg's largest railway project of modern time, Sweco and a consortium were awarded a large-scale coordination and specialist contract by the Swedish Transport Administration. In the Chinese city of Jinan, Sweco's architects will design a new business incubation centre and an entrance area for a wetlands park.
| Net sales and profit | Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Net sales, SEK M | 456.3 | 405.7 | 1,716.3 | 1,401.8 |
| Operating profit, SEK M | 76.7 | 45.2 | 190.0 | 125.9 |
| Operating margin, % No. of employees at end |
16.8 | 11.1 | 11.1 | 9.0 |
| of period | 1,144 | 1,060 |
Sweco is one of Norway's largest engineering consultancies, with more than 1,100 employees. The Norwegian business area is organised in five divisions: Energy, Building & Construction, Building Service Systems, Vest and Water, Planning & Transportation.
The Norwegian market is showing continued positive development. Extensive investments in the road and railway network are creating favourable long-term demand for Sweco. The energy area is also showing healthy demand, above all with regard to electric power production. Investments in commercial properties are rising and demand in the housing sector remains strong. However, certain parts of the industrial sector noted a downturn in the latter half of the year, above all in the export industries.
In the fourth quarter Sweco's Norwegian consultants were commissioned among other things to plan a major expansion of the LTR system in Oslo, together with upgrading of the adjacent road network. Sweco also signed a framework agreement with Statkraft Energi that covers some 30 projects in Norway and Sweden. Additional assignments include planning and design of passing tracks along the Ofotbanan between Narvik, Norway, and the Swedish border.
| Net sales and profit | Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Net sales, SEK M | 263.8 | 27.0 | 893.5 | 92.4 |
| Operating profit, SEK M | 26.7 | 0.3 | 104.8 | 7.3 |
| Operating margin, % | 10.2 | 1.0 | 11.7 | 7.9 |
| No. of employees at end of period |
1,341 | 70 |
As of 1 February 2012, FMC Group is part of Sweco Finland. FMC had more than 1,200 employees at year-end 2012 and offers services mainly in the areas of structural engineering, building service systems, industrial engineering, energy and environment. FMC Group is among other things the Finnish market-leader in structural engineering. The business area also includes Sweco PM with 100 employees, which primarily offers project management services to clients
in the infrastructure, construction and industrial sectors.
Demand for Sweco's building-related services in Finland was stable in the fourth quarter, although declining demand is being noted for services in the housing sector. Long-term demand is awaited for public facilities such as schools and hospitals. Development is also positive in the renovation, rebuilding and expansion sector. Demand in the infrastructure area remains weak.
Notable new assignments include the construction of a 26-storey hotel with a total area of 25,000 square meters in Tampere, Finland. The assignment also includes renovation of a 100-year-old water tower. Other assignments involve project management in connection with the renovation and expansion of healthcare centres in Kangasala and Vatiala.
| Net sales and profit | Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Net sales, SEK M | 85.4 | 86.5 | 281.6 | 256.5 |
| Operating profit, SEK M | 0.7 | 5.3 | 6.6 | 1.6 |
| Operating margin, % No. of employees at end |
0.8 | 6.1 | 2.4 | 0.6 |
| of period | 863 | 917 |
Sweco Central & Eastern Europe has close to 900 employees and is active in Estonia, Lithuania, Poland, the Czech Republic, Slovakia and Bulgaria.
The market situation in the business area improved somewhat in the fourth quarter, but from significantly lower levels than normal.
The markets in the Baltic countries and Bulgaria, in particular, are showing signs of recovery, primarily in the energy and environmental areas.
Poland is seeing continued weak demand for infrastructure and architectural services, while the market situation in the Czech Republic remains stable. Ongoing use of the EU structural funds 2014-2020 to support less developed regions in the European Union is expected to stimulate long-term demand for the business area's services.
New assignments in the fourth quarter included planning of a unloading facility for rail-bound traffic at the port of Sillamäe in Estonia. In Poland, Sweco has been chosen to plan flood protection solutions along the Wisla River and in Slovakia, Sweco has been given responsibility for planning of a wastewater treatment plant at Volkswagen's production plant in Bratislava. In the city of Brno in the Czech Republic,
Sweco has been commissioned to upgrade parts of the municipal water and wastewater system.
| Net sales and profit | Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Net sales, SEK M | 28.0 | 44.4 | 94.4 | 109.7 |
| Operating profit/loss, SEK M |
-21.2 | 5.9 | -36.0 | 10.3 |
| Operating margin, % | -75.8 | 13.5 | -38.2 | 9.4 |
| No. of employees at end of period |
298 | 366 |
Sweco Russia has around 300 employees and offers services in Infrastructure and Water & Environment. Sweco Russia is also responsible for coordination of project exports from the other business areas to Russia.
In the wake of the Russian presidential election, a large number of projects have been postponed pending new decisions. This has primarily affected Sweco NIPI and Sweco IKTP, which are active in state-financed infrastructure projects to a large extent. This trend has resulted in very weak capacity utilisation for Sweco, also in the fourth quarter. In response to this, additional measures have been taken to adapt operations to the current market conditions. A slight recovery in demand was noted at the end of the quarter, although the level is still comparatively low.
In the fourth quarter Sweco's Russian consultants won a contract to prepare for construction of a ring road around Kazakhstan's largest city of Almaty. In the assignment, Sweco will perform a financial assessment and modelling of the project to serve as a decision-making basis for potential financiers.
| Net sales and profit t | Oct Dec 2012 |
Oct Dec 2011 |
Jan Dec 2012 |
Jan Dec 2011 |
|---|---|---|---|---|
| Net sales, SEK M | 179.9 | 210.0 | 707.5 | 649.4 |
| Operating profit/loss, SEK M |
-10.6 | 14.0 | 24.0 | 24.9 |
| Operating margin, % | -5.9 | 6.7 | 3.4 | 3.8 |
| No. of employees at end of period |
712 | 694 |
Sweco Industry is the Group's resource for qualified industrial consulting services. The business area's capabilities include studies, planning, engineering and project management services for expansion and development of industrial facilities. With some 450 employees in Finland, 230 in Sweden and 20 in Norway, Sweco Industry is one of the Nordic region's
largest industrial engineering consultancies. Sweco Industry also has operations in Russia, Eastern Europe and South America. The business area works with a focus on the energy, chemical and petrochemical, pulp and paper, mining and mineral industries, as well as offshore projects.
The market situation for Sweco's industrial consultants worsened somewhat in the fourth quarter. Above all, demand for energy and mining-related services in Finland has been weakened by project postponements. At the end of the period, an increased volume of inquiries was noted across all segments, which is expected to lead to stabilisation of the Finnish market. The Swedish market is stable and is among other things showing continued healthy demand in the mining industry. New investments in the pulp and paper industry have been announced in Asia, South America and Russia, which will benefit demand for Sweco's industry-related services.
In the fourth quarter Sweco was awarded several new energy contracts related to district heating production for clients like Göteborg Energi and Borås Energi och Miljö. During the period, Sweco was also chosen to perform new feasibility studies on behalf of LKAB in Kiruna and Gällivare, Sweden. In addition, Sweco signed new contracts with Metso, Neste Jacobs, Outotec and others.
Acquisitions during 2012 have increased the number of employees in the Sweco Group by 1,189.
During the year, Sweco acquired the Finnish architectural firm of Arkkitehtitoimisto Brunow & Maunula Oy with 18 employees. Brunow & Maunula is one of Finland's leading residential architects.
In 2012 Sweco acquired the project and construction management company Pyramide AS in Norway with 13 employees.
Sweco has acquired the Finnish engineering consultancy FMC Group (whose parent company is Finnmap Consulting Oy) with 1,149 employees on the date of acquisition.
During the year, Sweco acquired the operations of the Finnish project management consultancy Lahden Projektiimi with nine employees.
Sweco complies with the International Financial Accounting Standards (IFRS) and interpretations of these (IFRIC) that have been endorsed by the European Commission for application in the EU. This interim report is presented in accordance with IAS 34, Interim Financial Reporting, the Swedish Annual
Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The accounting and valuation standards applied by the Group are the same as those described in Note 1 of the annual report for 2011.
After the end of the year, Sweco acquired the Norwegian consulting engineering firm of Planstyring AS with 28 employees.
Sweco has also acquired the Norwegian building service systems company MEC Consult AS with six employees.
The significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks tied to the general economic trend and investment spending in different markets, the ability to attract and retain competent personnel and the effects of political decisions. The Group is also exposed to different types of financial risk, such as foreign exchange risk, interest rate risk and credit risk. No significant risks are assessed to have arisen aside from those presented on page 82 of Sweco's annual report for 2011, "Risk management".
The Board proposes a dividend of SEK 3.25 (3.00) per share, amounting to a maximum capital distribution of SEK 297.4 million (274.0).
The Board has decided to propose that the 2013 Annual General Meeting authorise the Board to decide on the repurchase of treasury shares. This mandate would enable the Board, during the period before the next Annual General Meeting, to decide on the repurchase of Sweco shares when deemed appropriate. The repurchased shares may amount to no more than 10 per cent of the outstanding share volume, in accordance with the applicable legislation. The repurchase may be carried out over the stock exchange or through an offer to the shareholders. The Board's authorisation is also proposed to include the right to sell the repurchased shares.
The Board has furthermore decided to propose that the 2013 Annual General Meeting approve the implementation of a long-term share savings scheme for up to 80 senior executives and other key staff in the Sweco Group.
The Annual General Meeting will be held on Wednesday, 17 April 2013, at Näringslivets Hus, Storgatan 19, in Stockholm, Sweden. Sweco's annual report will be available to shareholders at the head
office, Gjörwellsgatan 22 in Stockholm, and on the corporate website www.swecogroup.com around three weeks prior to the Annual General Meeting.
The number of normal working hours in 2013, based on the year's volume-weighted operating mix, can be broken down a follows:
Quarter 1: 481 (505), -24 Quarter 2: 476 (461), +15 Quarter 3: 522 (515), +7 Quarter 4: 484 (487), -3 Total in 2013: 1,963 (1,968), -5
Interim report January–March 8 May 2013 Interim report January–June 18 July 2013 Interim report January–September 5 November 2013 Year-end report 2013 14 February 2014
The market for consulting engineering and architectural services is generally good, although a downturn has been noted in areas such as the housing sector and certain industrial segments. Despite this, continued positive development is awaited in most service segments. Sweco's ambition is to achieve sustained profitable growth by strengthening its market positions in the Nordic region and in Central and Eastern Europe. Sweco's healthy finances, leading market positions in several important growth areas and wide offering of services provide a solid platform for stable long-term development.
Stockholm, 14 February 2013
Tomas Carlsson President & CEO
This report has not been examined by the company's auditors.
For additional information contact:
Tomas Carlsson, President & CEO Telephone +46 8 695 66 60 / +46 70 552 92 75 [email protected]
Jonas Dahlberg, CFO Telephone +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. ID no. 556542-9841 Gjörwellsgatan 22, Box 34044, SE-100 26 Stockholm, Sweden Telephone +46 8 695 60 00, Fax +46 8 695 66 10 E-mail: [email protected] www.swecogroup.com
Sweco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.The information was submitted for publication on 14 February 2013, 13:30 CET.
| Income statement, SEK M | Oct-Dec 2012 | Oct-Dec 2011 | Full year 2012 |
Full year 2011 |
|---|---|---|---|---|
| Net sales | 2,093.5 | 1,786.1 | 7,503.5 | 5,987.6 |
| Other operating income | 6.7 | - | 12.5 | - |
| Other external expenses | -531.4 | -481.3 | -1,817.4 | -1,505.1 |
| Personnel costs | -1,317.1 | -1,081.9 | -4,861.6 | -3,841.6 |
| Amortisation/depreciation and impairment |
-69.2 | -31.3 | -177.7 | -109.6 |
| Operating profit | 182.5 | 191.6 | 659.3 | 531.3 |
| Net financial items | -11.3 | -0.2 | -28.5 | -4.5 |
| Profit before tax | 171.2 | 191.4 | 630.8 | 526.8 |
| Income tax expense | -56.9 | -62.4 | -171.0 | -152.0 |
| PROFIT FOR THE PERIOD | 114.3 | 129.0 | 459.8 | 374.8 |
| Profit for the period attributable to: | ||||
| Owners of the Parent Company | 112.3 | 128.3 | 454.3 | 373.5 |
| Non-controlling interests | 2.0 | 0.7 | 5.5 | 1.3 |
| Earnings per share attributable to owners of the Parent Company, SEK |
||||
| - Basic | 1.23 | 1.41 | 4.97 | 4.11 |
| - Diluted | 1.23 | 1.41 | 4.97 | 4.11 |
| Average number of shares | 91,301,525 | 90,719,827 | 91,354,385 | 90,858,246 |
| Average number of shares after dilution | 91,301,525 | 90,719,827 | 91,354,385 | 90,861,102 |
| Dividend per share, SEK (proposed for 2012) |
- | - | 3.25 | 3.00 |
| Statement of comprehensive income, SEK M | Oct-Dec 2012 |
Oct-Dec 2011 |
Full year 2012 |
Full year 2011 |
|---|---|---|---|---|
| Profit for the period | 114.3 | 129.0 | 459.8 | 374.8 |
| Translation differences | 25.9 | -30.1 | -10.6 | -13.6 |
| COMPREHENSIVE INCOME FOR THE PERIOD | 140.2 | 98.9 | 449.2 | 361.2 |
| Comprehensive income attributable to: | ||||
| Owners of the Parent Company | 137.7 | 98.6 | 444.3 | 360.0 |
| Non-controlling interests | 2.5 | 0.3 | 4.9 | 1.2 |
| Cash flow statement, SEK M | Oct-Dec 2012 |
Oct-Dec 2011 |
Full year 2012 |
Full year 2011 |
|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital and paid tax |
194.8 | 244.5 | 763.2 | 657.7 |
| Paid tax | -17.0 | -41.2 | -197.7 | -138.6 |
| Changes in working capital | 116.8 | 120.9 | -150.7 | -6.1 |
| Cash flow from operating activities | 294.6 | 324.2 | 414.8 | 513.0 |
| Cash flow from investing activities | -51.9 | -157.6 | -655.5 | -312.9 |
| Cash flow from financing activities | -208.4 | -73.6 | 393.2 | -355.9 |
| CASH FLOW FOR THE PERIOD | 34.3 | 93.0 | 152.5 | -155.8 |
| Balance sheet, SEK M | 31 Dec 2012 | 31 Dec 2011 |
|---|---|---|
| Goodwill | 1,418.1 | 907.5 |
| Other intangible assets | 144.6 | 88.3 |
| Property, plant and equipment | 288.5 | 230.8 |
| Financial assets | 71.2 | 34.5 |
| Current assets excl. cash and cash equivalents | 2,400.3 | 1,776.1 |
| Cash and cash equivalents incl. short-term investments | 366.8 | 219.6 |
| TOTAL ASSETS | 4,689.5 | 3,256.8 |
| Equity attributable to owners of the Parent Company | 1,692.2 | 1,493.2 |
| Non-controlling interests | 22.3 | 10.5 |
| Total equity | 1,714.5 | 1,503.7 |
| Non-current liabilities | 835.3 | 192.3 |
| Current liabilities | 2,139.7 | 1,560.8 |
| TOTAL EQUITY AND LIABILITIES | 4,689.5 | 3,256.8 |
| Pledged assets | 1.8 | - |
| Contingent liabilities | 194.3 | 207.7 |
| Changes in equity, SEK M | Jan-Dec 2012 | Jan-Dec 2011 | ||||
|---|---|---|---|---|---|---|
| Equity attributable to owners of the Parent Company |
Non controlling interests |
Total equity |
Equity attributable to owners of the Parent Company |
Non controlling interests |
Total equity |
|
| Equity, opening balance | 1,493.2 | 10.5 | 1,503.7 | 1,419.6 | 10.0 | 1,429.6 |
| Comprehensive income for the period | 444.3 | 4.9 | 449.2 | 360.0 | 1.2 | 361.2 |
| Distribution to the shareholders | -274.0 | -0.8 | -274.8 | -272.8 | -1.0 | -273.8 |
| Holdings of non-controlling interests in acquired companies | - | 7.9 | 7.9 | - | 0.2 | 0.2 |
| Acquisition of non-controlling interests | 0.1 | -0.2 | -0.1 | - | -0.1 | -0.1 |
| Change in holding of non-controlling interests | - | - | - | -0.2 | 0.2 | - |
| Issue of treasury shares | 46.9 | - | 46.9 | - | - | - |
| Repurchase of treasury shares | -19.5 | - | -19.5 | -13.6 | - | -13.6 |
| Share savings schemes | 1.2 | - | 1.2 | 0.2 | - | 0.2 |
| EQUITY, CLOSING BALANCE | 1,692.2 | 22.3 | 1,714.5 | 1,493.2 | 10.5 | 1,503.7 |
| Key ratios1) | Full year 2012 | Full year 2011 |
|---|---|---|
| Operating margin, % | 8.8 | 8.9 |
| Profit margin, % | 8.4 | 8.8 |
| Billing ratio, % | 74.2 | 73.9 |
| Return on equity, % | 28.5 | 25.6 |
| Return on capital employed, % | 32.6 | 34.2 |
| Net debt/equity ratio, % | 23.9 | -9.4 |
| Equity/assets ratio, % | 36.6 | 46.2 |
| Earnings per share, SEK | ||
| - Basic | 4.97 | 4.11 |
| - Diluted | 4.97 | 4.11 |
| Equity per share for profit attributable to owners of the Parent Company, SEK |
||
| - Basic | 18.55 | 16.46 |
| - Diluted | 18.55 | 16.46 |
| Interest-bearing liabilities, SEK M | 776.1 | 78.7 |
| Of which, liabilities to credit institutions | 776.1 | 71.8 |
| Average number of employees | 7,336 | 5,772 |
| Number of shares on closing date | 91,233,682 | 90,719,827 |
| Number of shares after dilution on closing date | 91,233,682 | 90,719,827 |
| Number of shares after full dilution on closing date | 91,233,682 | 90,719,827 |
| Number of class B treasury shares | 283,165 | 797,020 |
1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2011.
| Business area | Net sales SEK M |
Operating profit SEK M |
Operating margin % |
Average no. of employees |
||||
|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| Sweco Sweden | 3,995.9 | 3,596.7 | 413.2 | 412.3 | 10.3 | 11.5 | 3,169 | 2,907 |
| Sweco Norway | 1,716.3 | 1,401.8 | 190.0 | 125.9 | 11.1 | 9.0 | 1,141 | 994 |
| Sweco Finland | 893.5 | 92.4 | 104.8 | 7.3 | 11.7 | 7.9 | 1,149 | 73 |
| Sweco Central & Eastern Europe | 281.6 | 256.5 | 6.6 | 1.6 | 2.4 | 0.6 | 815 | 823 |
| Sweco Russia | 94.4 | 109.7 | -36.0 | 10.3 | -38.2 | 9.4 | 315 | 306 |
| Sweco Industry | 707.5 | 649.4 | 24.0 | 24.9 | 3.4 | 3.8 | 733 | 653 |
| Group-wide, eliminations, etc. | -185.7 | -118.9 | -43.3 | -51.0 | - | - | 14 | 16 |
| Total Group | 7,503.5 | 5,987.6 | 659.3 | 531.3 | 8.8 | 8.9 | 7,336 | 5,772 |
Operating profit for group-wide consists mainly of the Parent Company's loss of SEK –44.0 million (–53.1).
In the period under review Sweco acquired Pyramide AS, Finnmap Consulting Oy, Karasharju Oy, Arkkitehtitoimisto Brunow & Maunula Oy and the operations of Lahden Projektiimi with a total of 1,189 employees. During the period Sweco also acquired minority shares in Sweco Projekt. Based on the preliminary purchase price allocations, these acquisitions have affected the Group's balance sheet and cash and cash equivalents as shown in the table below. During the period the acquired companies have contributed net sales of SEK 830.6 million and operating profit of SEK 101.6 million. If all of the companies had been acquired at 1 January 2012, the contribution would have been around SEK 912 million to net sales and around SEK 111 million to operating profit. The period's transaction costs for the acquisitions are recognised in operating profit and amounted to SEK 12.5 million, of which SEK 12.0 million consists of transaction tax. Total transaction costs for these acquisitions in this period and earlier periods amount to SEK 20.9 million.
| Acquisitions, SEK M | FMC Group | Other acquisitions |
|---|---|---|
| Intangible assets | 629.8 | 32.0 |
| Property, plant and equipment | 7.1 | 0.4 |
| Financial assets | 19.4 | 0.0 |
| Current assets | 575.8 | 19.7 |
| Non-current liabilities | -7.9 | - |
| Deferred tax | -47.5 | -3.0 |
| Other current liabilities | -420.5 | -11.7 |
| Non-controlling interests | -8.0 | 0.2 |
| Equity attributable to owners of the Parent Company | - | -0.1 |
| Total consideration | 748.2 | 37.5 |
| Unsettled purchase price commitments | - | -5.1 |
| Settled purchase price commitments for acquisitions in earlier years | - | 10.2 |
| Consideration paid in shares | -46.9 | - |
| Cash and cash equivalents in acquired companies | -193.9 | -10.4 |
| EFFECT ON THE GROUP'S CASH AND CASH EQUIVALENTS | 507.4 | 32.2 |
During the period under review, Sweco sold Hydroprojekt Slovakia s.r.o with 4 employees. The company has contributed net sales of SEK 0.3 million and operating profit of SEK –0.3 million. The sale generated a capital loss on the SEK 0.4 million and had an impact on SEK –0.5 million on consolidated cash and cash equivalents.
| Parent Company income statement, SEK M | Full year 2012 | Full year 2011 |
|---|---|---|
| Net sales | 214.4 | 80.3 |
| Other external expenses | -202.1 | -92.2 |
| Personnel costs | -45.6 | -37.3 |
| Amortisation/depreciation and impairment | -10.7 | -3.9 |
| Operating loss | -44.0 | -53.1 |
| Net financial items | 433.5 | 464.3 |
| Profit after net financial items | 389.5 | 411.2 |
| Appropriations | -86.8 | -1.1 |
| Profit before tax | 302.7 | 410.1 |
| Income tax expense | -70.1 | -93.7 |
| PROFIT AFTER TAX | 232.6 | 316.4 |
| Parent Company balance sheet, SEK M | 31 Dec 2012 | 31 Dec 2011 |
|---|---|---|
| Intangible assets | 6.9 | 9.7 |
| Property, plant and equipment | 14.3 | 12.0 |
| Financial assets | 1,111.9 | 371.2 |
| Current assets | 1,662.8 | 1,624.8 |
| TOTAL ASSETS | 2,795.9 | 2,017.7 |
| Equity | 1,270.8 | 1,283.7 |
| Untaxed reserves | 88.0 | 1.2 |
| Non-current liabilities | 670.6 | - |
| Current liabilities | 765.5 | 732.8 |
| TOTAL EQUITY AND LIABILITIES | 2,795.9 | 2,017.7 |
| Five-year overview1) | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||
| 7,503.5 | 5,987.6 | 5,272.4 | 5,338.7 | 5,522.8 | ||||
| 659.3 | 531.3 | 432.7 | 443.6 | 596.3 | ||||
| 630.8 | 526.8 | 423.7 | 443.6 | 588.2 | ||||
| 8.8 | 8.9 | 8.2 | 8.3 | 10.8 | ||||
| 74.2 | 73.9 | 73.4 | 73.6 | 75.6 | ||||
| 28.5 | 25.6 | 19.9 | 19.6 | 34.6 | ||||
| 32.6 | 34.2 | 26.5 | 27.5 | 44.4 | ||||
| 23.9 | -9.4 | -16.8 | -26.2 | -11.3 | ||||
| 36.6 | 46.2 | 47.8 | 50.6 | 47.0 | ||||
| 4.97 | 4.11 | 3.31 | 3.31 | 4.68 | ||||
| 4.97 | 4.11 | 3.28 | 3.28 | 4.65 | ||||
| 3.25 | 3.00 | 3.00 | 2.00 | 2.00 | ||||
| - | - | - | 2.00 | - | ||||
| 7,336 | 5,772 | 4,986 | 5,082 | 5,453 | ||||
1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2011.
| Business area | 2012 Q4 |
2012 Q3 |
2012 Q2 |
2012 Q1 |
2011 Q4 |
2011 Q3 |
2011 Q2 |
2011 Q1 |
2010 Q4 |
2010 Q3 |
2010 Q2 |
2010 Q1 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales, SEK M | ||||||||||||
| Sweco Sweden | 1,130.3 | 820.9 | 1,013.8 | 1,030.9 | 1,053.2 | 750.5 | 923.3 | 869.7 | 902.1 | 626.1 | 803.0 | 772.7 |
| Sweco Norway | 456.3 | 349.3 | 438.2 | 472.5 | 405.7 | 307.2 | 339.5 | 349.4 | 324.3 | 276.1 | 345.6 | 350.6 |
| Sweco Finland | 263.8 | 214.4 | 259.3 | 156.0 | 27.0 | 21.4 | 23.9 | 20.1 | 24.6 | 18.4 | 19.3 | 19.6 |
| Sweco Central & Eastern Europe |
85.4 | 61.7 | 68.1 | 66.4 | 86.5 | 54.3 | 60.8 | 54.9 | 85.1 | 64.5 | 64.2 | 64.4 |
| Sweco Russia | 28.0 | 6.7 | 27.2 | 32.5 | 44.4 | 33.1 | 27.1 | 5.1 | 7.1 | 7.7 | 7.3 | 6.4 |
| Sweco Industry | 179.9 | 142.9 | 191.9 | 192.8 | 210.0 | 137.6 | 157.3 | 144.5 | 143.0 | 114.1 | 129.4 | 150.1 |
| Group-wide, eliminations, etc. |
-50.2 | -38.6 | -55.4 | -41.5 | -40.7 | -30.0 | -25.2 | -23.0 | -7.2 | -18.0 | -3.3 | -24.8 |
| Total Group | 2,093.5 | 1,557.3 | 1,943.1 | 1,909.6 | 1,786.1 | 1,274.1 | 1,506.7 | 1,420.7 | 1,479.0 | 1,088.9 | 1,365.5 1,339.0 | |
| Operating profit/loss, SEK M |
||||||||||||
| Sweco Sweden | 134.4 | 45.6 | 94.7 | 138.5 | 139.2 | 53.4 | 113.6 | 106.1 | 106.2 | 44.1 | 98.1 | 85.8 |
| Sweco Norway | 76.7 | 24.7 | 20.2 | 68.4 | 45.2 | 26.7 | 16.4 | 37.6 | 30.0 | 25.4 | 36.2 | 39.2 |
| Sweco Finland | 26.7 | 32.8 | 29.5 | 15.8 | 0.3 | 2.2 | 2.9 | 1.9 | 1.3 | 2.6 | 2.1 | 1.2 |
| Sweco Central & Eastern Europe |
0.7 | 1.6 | 1.7 | 2.6 | 5.3 | -1.1 | 0.6 | -3.2 | 3.5 | -0.6 | 3.4 | 1.0 |
| Sweco Russia | -21.2 | -9.0 | -3.0 | -2.8 | 5.9 | 3.0 | 1.7 | -0.3 | 1.0 | 1.4 | 0.5 | 0.5 |
| Sweco Industry | -10.6 | 1.3 | 12.1 | 21.2 | 14.0 | 4.1 | 3.8 | 3.0 | 2.5 | -3.3 | 0.7 | 1.6 |
| Group-wide, eliminations, etc. |
-24.2 | -1.1 | -5.6 | -12.4 | -18.3 | -13.2 | -11.0 | -8.5 | -16.0 | 0.0 | -28.8 | -6.9 |
| Total Group | 182.5 | 95.9 | 149.6 | 231.3 | 191.6 | 75.1 | 128.0 | 136.6 | 128.5 | 69.6 | 112.2 | 122.4 |
| Operating margin, % | ||||||||||||
| Sweco Sweden | 11.9 | 5.6 | 9.3 | 13.4 | 13.2 | 7.1 | 12.3 | 12.2 | 11.8 | 7.0 | 12.2 | 11.1 |
| Sweco Norway | 16.8 | 7.1 | 4.6 | 14.5 | 11.1 | 8.7 | 4.8 | 10.8 | 9.3 | 9.2 | 10.5 | 11.2 |
| Sweco Finland | 10.2 | 15.3 | 11.4 | 10.1 | 1.0 | 10.5 | 12.0 | 9.5 | 5.3 | 14.1 | 10.7 | 6.3 |
| Sweco Central & Eastern Europe |
0.8 | 2.7 | 2.4 | 3.9 | 6.1 | -2.1 | 1.1 | -5.9 | 4.1 | -0.9 | 5.3 | 1.6 |
| Sweco Russia | -75.8 | -135.5 | -11.1 | -8.5 | 13.5 | 8.9 | 6.2 | -5.1 | 14.1 | 18.2 | 6.6 | 7.8 |
| Sweco Industry | -5.9 | 0.9 | 6.3 | 11.0 | 6.7 | 3.0 | 2.4 | 2.1 | 1.7 | -2.9 | 0.5 | 1.1 |
| Total Group | 8.7 | 6.2 | 7.7 | 12.1 | 10.7 | 5.9 | 8.5 | 9.6 | 8.7 | 6.4 | 8.2 | 9.1 |
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