AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Byggmax Group

Earnings Release Jan 26, 2012

3014_10-k_2012-01-26_5bc6a8dc-935f-4168-8c4e-bf1decd3fe7d.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Year-end report January - December 2011

During the fourth quarter, Byggmax increased operating income by 12.6

percent and profit before tax by 43.3 percent.

October 1 - December 31

  • Net sales amounted to SEK 618.3 (549.1) M up 12.6 percent
  • Gross margin was 31.6 (29.7) percent
  • EBIT totaled SEK 50.3 (37.9) M
  • EBIT margin was 8.1 (6.9) percent
  • Profit after tax amounted to SEK 33.4 (20.1) M
  • Earnings per share totaled SEK 0.6 (0.3)

Significant events during the quarter

• The Group's two distribution hubs were merged into one hub located in Lysekil in October.

• In 2012, the target number of store openings is 10-15 stores.

January 1 - December 31

  • Net sales totaled SEK 2,987.1 (2,773.0) M, up 7.7 percent
  • Gross margin was 30.1 (29.7) percent
  • EBIT amounted to SEK 277.5 (274.8) M
  • EBIT margin was 9.3 (9.9) percent
  • Profit after tax amounted to SEK 182.2 (172.2) M
  • Earnings per share totaled SEK 3.0 (2.8)

Significant events January - December 2011 (Excluding significant events during the fourth quarter).

• 13 (12) new stores were opened during the period, six in Sweden, three in Norway and four in Finland.

• During the second quarter, a number of key individuals subscribed for warrants pursuant to the incentive program adopted by the Annual general Meeting.

• In the third quarter, Byggmax Fastighetsutveckling 5 AB (comprising a property in Norrtälje, Sweden) was sold. This transaction had no impact on earnings.

• An expanded product range, which may only be ordered via the website, was launched in April.

• Byggmax has announced that the target number of stores to be opened in existing markets has been raised from 110-130 to 155.

• The Board of Directors proposes a dividend of SEK 1.8 per share for 2011.

Earnings overview October - December January - December
2011 2010 2011 2010
Net sales, SEK M 618.3 549.1 2,987.1 2,773.0
Gross margin, percent 31.6 29.7 30.1 29.7
EBIT, SEK M 50.3 37.9 277.5 274.8 (291.51
)
EBIT margin, percent 8.1 6.9 9.3 9.9 (10.51
)
Profit after tax, SEK M 33.4 20.1 182.2 172.2 (182.71
)
Earnings per share, SEK2 0.6 0.3 3.0 2.8 (3.01
)
Return on equity, percent 4.0 2.7 22.9 31.7
Cash flow operating activities per share2
, SEK
-3.6 -2.4 1.5 3.4
Shareholders´equity per share2
,SEK
13.9 12.3 13.9 12.3
Numbers of stores at the en of the period 86 73 86 73
New stores opened during the period 0 0 13 12

1 Earnings overview excluding listing costs 2 Comparative figures have been adjusted for the share split 1:3 carried out on June 2, 2010.

President's comments on results

Overall sales rose by close to 13 percent during the quarter compared to the year-earlier period. The establishment of new stores made a positive impact on growth in parallel with increased sales from existing stores. In addition, the milder than normal weather for part of the quarter had a positive impact on sales.

The gross margin for the quarter was higher than for the yearearlier period. The gross margin has been strengthened by a positive product mix and by early payment of suppliers by Byggmax in return for discounted prices for a longer period in the fourth quarter compared with the preceding year. Byggmax ceased discounted early payments to suppliers at the end of December and expects accounts payable to be at a more normal level at the end of the first quarter. Operating costs increased during the quarter, primarily due to an increase in the number of stores.

Strategic business decisions

Byggmax opened no stores in the fourth quarter of 2011. This means that the total number of store openings in 2011 was 13, six in Sweden, three in Norway and four in Finland. Byggmax plans to open an additional 10-15 stores in 2012.

Byggmax joins the Bricoalliance from January 2012. The Bricoalliance is a joint purchasing collaboration comprising nine major commercial enterprises in Europe that operate a total of 547 stores with sales of SEK 16 billion. Byggmax is joining this partnership to further strengthen its competitive purchasing operations.

Outlook

The uncertainty regarding trends in the economies of Byggmax's markets continues. Historically, Byggmax has strengthened its market position during a weaker economy due to its low-price concept. Sales growth was slightly lower than the goal for the fourth quarter, although higher than in the previous two quarters. We are convinced of the strength of the Byggmax concept, which is confirmed by the Board of Directors' proposed increase in the dividend from SEK 1.50 to 1.80 per share.

An expanded store network is enabling us to reach an increasing number of consumers in Sweden, Norway and Finland and with our high degree of cost awareness, we remain on the side of our customers by offering an attractive range at very low prices.

Magnus Agervald

Number of stores

Business concept

Byggmax's business concept is to sell high-quality building supplies at the lowest price possible.

Business model and key factors for success

Byggmax offers inexpensive high-quality products for the most common maintenance and DIY projects, ever since the company was founded in 1993, the operations have been conducted in accordance with the Byggmax concept, which has been essential to the company's development. The concept is based on a focused product range, a resource-efficient organization, a strong corporate culture and consistent pricing strategy, as well as the characteristic design of the stores.

Goals and strategies

Byggmax has determined it's long term goals for the Group as follows:

  • organic growth to exceed 15 percent per year in net sales through expansion of the chain of stores and increased sales in comparable stores, and
  • maintenance of an EBIT margin in relation to net sales that exceeds 11 percent.

Byggmax's strategy for achieving its financial goals is to expand the chain of stores in existing markets, to improve operating activities and to maintain continuous focus on business development.

During 2011, Byggmax opened 13 new stores, six in Sweden, three in Norway and four in Finland. The diagram illustrates the expansion of the chain of stores since Byggmax was founded in 1993.

Consolidated sales and earnings

October 1 - December 31

Revenues

The operation's net sales totaled SEK 618.3 M (549.1), up 12.6 percent. Operating revenue was SEK 619.4 M (550.1), up 12.6 percent. Net sales for comparable stores3 rose 2.3 percent in local currency. Net sales amounted to SEK 444.7 M (419.9) in Sweden and SEK 173.6 M (129.2) in the other Nordic markets.

The sales increase of 12,6 percent was divided according to
the following:
Comparable stores, local currency, percent 2.3
Non-comparable units, percent 9.7
Exchange rate effects, percent 0.6
Total, percent 12.6

The Group opened zero (zero) new stores during the quarter. Accordingly, the total number of stores in the Group at December 31, 2011 was 86 (73).

EBIT

EBIT amounted to SEK 50.3 M (37.9). The EBIT margin was 8.1 percent (6.9). The gross margin amounted to 31.6 percent, compared with 29.7 percent for the year-earlier period.

Personnel and other external costs increased by a total SEK 17.5 M. This was primarily due to costs of SEK 14.4 M incurred for new stores opened in 2011.

Profit before tax

Profit before tax amounted to SEK 45.7 M (31.9). Net financial items amounted to an expense of SEK 4.6 M (expense: 5.9). Net financial items were impacted by exchange-rate differences.

January 1 - December 31

Revenues

The operation's net sales totaled SEK 2,987.1 M (2,773.0), up 7.7 percent. Operating revenue was SEK 2,992.1 M (2,776.1), up 7.8 percent. Net sales for comparable stores3 declined 1.9 percent in local currency. Net sales amounted to SEK 2,269.0 M (2,202.3) in Sweden and SEK 718.0 M (570.7) in the other Nordic markets.

The sales increase of 7.8 percent was divided according to the
following:
Comparable stores, local currency, percent -1.9
Non-comparable units, percent 10.3
Exchange rate effects, percent -0.6
Total, percent 7.8

The Group opened 13 (12) new stores during the period. Accordingly, the total number of stores in the Group at December 31, 2011 was 86 (73)

EBIT

EBIT amounted to SEK 277.5 M (274.8). The EBIT margin was 9.3 percent (9.9). The gross margin amounted to 30.1 percent, compared with 29.7 percent for the corresponding period of the preceding year.

Personnel and other external costs have increased by a total of SEK 67.2 M. This was primarily due to costs of SEK 69.2 M incurred for new stores that were not opened in the corresponding period in 2010. The first half of 2010 was charged with costs arising from the stock exchange listing of SEK 16.7 M. Marketing costs for the period were SEK 10.4 M higher than for the yearearlier period, which was primarily explained by costs associated with television commercials in Finland and the production of advertising commercials.

Profix before tax

Profit before tax amounted to SEK 251.9 M (237.4). Net financial items amounted to an expense of SEK 25.8 M (expense: 37.4). The improvement in net financial items was attributable to lower interest expenses subsequent to the conversion of half of the Group's shareholder loan to equity in June 2010. Net financial items were impacted by exchange-rate differences.

Cash flow and financial position

Cash flow from operating activities for the October to December period amounted to negative SEK 221.5 M (148.7), a decline of SEK 72.8 M compared with the year-earlier period. This is primarily attributable to an increase in accounts payable arising from a greater degree of cash payments made by the Group compared with the year-earlier period. Tax paid rose by SEK 40.2 M compared with the preceding year. This was attributable to increased preliminary tax during the year. At the end of the period, inventory amounted to SEK 424.9 M (350.5). Compared with the end of the year-earlier period, 13 new stores were added and inventory associated with these amounted to SEK 56.4 M. Stock for distribution was SEK 26.1 M higher year-on-year due to an increasing amount of stock being distributed via the distribution hub.

At December 31, 2011, consolidated shareholders' equity amounted to SEK 844.4 M (748.5). The Group's net indebtedness amounted to SEK 487.5 M (445.1), an increase of SEK 42.4 M compared with the year-earlier period. The equity/assets ratio was 47.8 (45.0) percent. Unutilized credits totaled SEK 70.2 M (175.3).

Investments (excluding financial leasing) during the fourth quarter amounted to SEK 8.7 M (1.8), of which SEK 1.2 M (0.2) comprised investments in new stores and SEK 4.3 M (1.7) in IT equipment. Investments (excluding financial leasing) for the year amounted to SEK 36.2 M (29.1), of which SEK 11.7 M (14.8) comprised investments in new stores and SEK 13.3 M (6.2) in IT equipment.

Acquisitions and establishments

Thirteen new stores were opened during the period January to December 2011: Ängelholm, Avesta, Enköping, Bollnäs, Lidköping and Norrtälje (Sweden). Lillehammer, Arendal and Tiller/ Trondheim (Norway). Borgå, Björneborg, Reso and Vanda (Finland). In the third quarter of 2011, the property investment company Byggmax Fastighetsutveckling 5 AB was sold.

The Byggmax workforce

The number of employees (converted to full-time equivalents) rose to 527 (434) at the end of the year, due to an increase in the number of stores.

Value drivers – short-term

• Weather – Byggmax sells many items for outdoor use and these sales are seasonal and, additionally, the majority of Byggmax's sales occur in the spring, summer and early autumn. The beginning and end of winter, as well as the weather during the peak season impact sales.

• Trends in cost prices – cost prices impact Byggmax's margins. Historically, the market has passed on adjustments in cost prices to the end consumer.

• Competitors' pricing – Byggmax prices products based on the prices of the competition with the objective of always being the cheapest. Therefore, the pricing of competitors affects margins. • Short-term trends in the DIY market – Byggmax operates in the DIY market and, accordingly, its trends impact the company.

• Availability of attractive store locations – The establishment of new stores is a key element of Byggmax's strategy in both the long and the short-term, thus making attractive store locations of key importance.

Value drivers – long-term

• The ability to maintain the strong corporate culture – The Byggmax culture plays a key role in the company's success and its retention is a key factor for continued success.

• The ability to execute the Group's strategy and business concept – Maintaining stringency levels in the product range and pricing as well as continuing to trim the organization through continuous improvements comprise a few of the key elements for success.

• The ability to renew the concept and strategies when needed – The Byggmax concept has remained much the same since it was founded in 1993. However, the concept has developed over time and new ideas have been tested and incorporated or discarded. • Long-term development of the DIY market – Byggmax operates in the DIY market and its long-term trend is important.

• Trends in the attractiveness of the low-price segment in the DIY market – Byggmax's strategy is to become the largest operator in the low-price segment in the Nordic region. Long-term trends are therefore important.

• The competition's strategies and their execution – Byggmax operates in a competitive market and the actions of the competition affect the Group.

Seasonal fluctutations

The company´s operations are affected by strong seasonal variations controlled by consumer demand for basic building supplies. Due to the weather´s impact on demand, Byggmax's sales and cash flow are generally higher in the second and third quarters, when about two thirds of the company´s sales are generated, while these usually decline in the fourth and first quarters. Although seasonal variations do not normally affect Byggmax's earnings and cash flow from year to year, earnings and cash flow may be impacted during the year by unusually harsh or mild weather conditions, or by excessive or insufficient precipitation. Byggmax endeavors to balance the seasonal effects by launching new products that are not as susceptible to seasonal variations.

Risks and uncertainties

A number of factors can impact Byggmax's earnings and operations. Most of these factors can be managed through internal procedures, while certain factors are largely governed by external circumstances. For a more detailed description of the Group's risks and risk management, refer to the Annual Report for 2010. Byggmax has updated its currency policy and now hedges currency positions greater than SEK 100 M on an annual basis (previously SEK 10 M). Apart from the risks described in the Annual Report, no material risks arose during the period.

Parent Company

The Parent Company is a holding company. Parent Company sales amounted to SEK 0.1 M (0.1) during the fourth quarter and SEK 0.3 M (0.3) for the full fiscal year. The Parent Company reported a profit after financial items of SEK 7.0 M (loss: 24.8) for the fourth quarter of 2011 and a loss of SEK 3.8 M (profit: 6.9) for the fiscal year. The company's earnings for 2010 were charged with expenses of SEK 16.7 M related to the IPO process. Net financial items improved significantly subsequent to the conversion of half of the Group's shareholder loan to equity in June 2010.

Proposed dividend

The Board of Directors proposes a dividend of SEK 1.8 per share for 2011.

Events after the close of the reporting period

No significant events have occurred since the end of the reporting period.

Accounting policies

Byggmax Group AB (publ) applies International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplementary Accounting Rules for Groups.

The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The same accounting policies were applied for the Parent Company as for the Group, except in the cases stated under Parent Company accounting policies in Note 2.2 of the Annual Report for 2010.

The following amendments of standards became obligatory for the first time for the fiscal year that commenced on January 1, 2011. The Group's and Parent Company's assessments of the impact of these new standards and interpretations are specified below.

Revised IAS 24 Related Party Disclosures issued in November 2009 replaced IAS 24 Related Party Disclosures issued in 2003. The Group applies the revised standard as of January 1, 2011.

For a more detailed description of the accounting policies applied for the Group and the Parent Company in this interim report, refer to Notes 1-4 of the Annual Report for the 2010 fiscal year.

All of the figures listed above and below in parentheses refer to the corresponding period or date in the preceding year.

Stockholm January 25, 2012

Magnus Agervald President of Byggmax Group AB (publ)

This report is unaudited.

Financial calender

First quarter interim report 2012 April 20, 2012 Second quarter interim report 2012 July 18, 2012 Third quarter interim report 2012 October 26, 2012

Annual General Meeting

The Annual General Meeting for 2011 will be held on April 20, 2012, in Stockholm, Sweden.

Contacts

For further information, please contact the following individuals by telephone at + 46-8-514 930 60 or by calling the direct numbers listed below:

Magnus Agervald, President

Tel: +46-76-11 90 020 E-mail: [email protected]

Pernilla Valfridsson, CFO Tel: +46 (0)76 11 90 040 E-mail: [email protected]

Background information about Byggmax and press photos are available at www.byggmax.com

Byggmax Group AB (publ) Box 6063, SE-171 06 Solna Sweden Visiting address: Armégatan 40 Tel: +46 (0)8 514 930 60, fax: +46 (0)8 514 930 79, e-mail: info@ byggmax.se Corporate Registration Number: 556656-3531 Registered office: Solna

Consolidated summary of comprehensive income

Amount in SEK M Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Note 2011 2010 2011 2010
Operating income
Net Sales
1
618.3 549.1 2,987.1 2,773.0
Other operating income 1.1 1.0 5.0 3.1
Operating income 619.4 550.1 2,992.1 2,776.1
Operating expenses
Goods for sale -423.1 -385.9 -2,088.0 -1,948.2
Other external and operating expenses -71.3 -60.5 -333.9 -299.1
Personnel costs -61.9 -55.1 -247.1 -214.7
Depreciation and ammortization of tangible and
intangible fixed assets -12.7 -10.7 -45.6 -39.2
Total operating expenses -569.1 -512.2 -2,714.6 -2,501.3
EBIT 50.3 37.9 277.5 274.8
Loss from financial items -4.6 -5.9 -25.8 -37.4
Profit before tax 45.7 31.9 251.6 237.4
Income tax -12.3 -11.8 -69.5 -65.2
Profit for the period 33.4 20.1 182.2 172.2
Other comprehensive income for the period
Translation differences 0.1 0.0 0.9 -3.2
Total other comprehensive income for the period 0.1 0.0 0.9 -3.2
Total comprehensive income for the period 33.5 20.1 183.1 169.0
Earnings per share before dilution, SEK2 0.6 0.3 3.0 2.8
Earnings per share after dilution, SEK2 0.6 0.3 3.0 2.8
Average number of share, 000s2 60,737 60,737 60,737 58,458
Number of shares at the end of the period2 60,737 60,737 60,737 60,737

2 Comparative figures have been adjusted for the share split 1:3 carried out on June 2, 2010.

Amounts in SEK M
Note
Dec 2011 Dec 2010
ASSETS
Fixed assets
Intangible fixed assets 1,072.6 1,064.2
Tangible fixed assets 140.5 126.0
Financial fixed assets 5.1 17.2
Total fixed assets 1,218.2 1,207.4
Current assets
Inventories 424.9 350.5
Derivatives 0.6 3.5
Current receivables 99.1 66.5
Cash and cash equivalents 22.8 34.1
Total current assets 547.5 454.6
TOTAL ASSETS 1,765.8 1,662.0
Amounts in SEK M
Note
Dec 2011 Dec 2010
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 844.4 748.5
LIABILITIES
Borrowing from credit institutions 166.3 239.3
Deferred tax liabilities 64.5 53.6
Long-term liabilities 230.8 292.9
Borrowing from credit institutions 344.0 240.0
Accounts payable 268.9 268.9
Current tax liabilites 4.5 42.4
Derivative instruments 0.0 4.9
Other liabilities 12.6 8.3
Accrued expenses and prepaid income 60.6 56.1
Current liabilities 690.6 620.6
TOTAL SHAREHOLDERS' EQUITY AND LIABILITES 1,765.8 1,662.0
Pledge assets - Shares in subsidiaries 845.6 658.7
Pledge assets - Chattel mortgages 120.0 120.0
Pledge assets - Blocked funds 12.3 13.2

Consolidated summary of statement of financial position

Consolidated statement of changes in shareholders' equity

Amounts in SEK M Note Dec 2011 Dec 2010
Opening balance at the beginning of the period 748.5 337.8
Comprehensive income
Translation differences 0.9 -3.2
Profit for the period 182.2 172.2
Total comprehensive income 183.1 169.0
Transactions with new shareholders
Dividend to shareholders -91.1 0,0
New share issue/share premium reserve 3.8 1.5
Offset issue, including reversal of discounting 0.0 231.0
Non-cash issue 0.0 9.0
Total transactions with shareholders -87.3 241.5
Shareholders' equity at the end of the period 844.4 748.5

Consolidated cash flow statement

Amounts in SEK M Oct - Dec Oct - Dec Jan - Dec Jan - Dec
2011 2010 2011 2010
Cash flow from operating activities
Operating activities 50.3 37.8 277.5 274.8
Non-cash items
- Depreciation/amortization of tangible and intangible
fixed assets 12.7 10.5 45.6 38.9
- Other non-cash items 0.9 0.6 2.3 -1.8
Interest received 1.0 0.3 6.0 6.8
Interest paid -8.3 -5.4 -33.7 -32.3
Tax paid -10.9 -30.8 -84.5 -44.8
Cash flow from operating activities before changes in
working capital 45.8 13.0 213.1 241.6
Changes in working capital
Increase/decrease in inventories and work in process -5.4 13.3 -93.0 -53.8
Increase/decrease in other current receivables -13.7 25.9 -43.4 34.0
Increase/decrease in other current payables -248.3 -200.8 15.8 -13.4
Cash flow from operating activities -221.5 -148.7 92.5 208.4
Cash flow from investing activities
Investment in intangible fixed assets -4.3 -2.8 -13.7 -7.0
Investment in tangible fixed assets -4.4 -1.4 -23.0 -24.5
Divestment of tangible fixed assets 0.0 0.0 -0.1 0.9
Investment in other financial fixed assets -8.5 0.1 0.9 -10.4
Investment in subsidiaries -0.2 0.0 -0.2 6.2
Proceeds from sale of subsidiaries 0.0 0.0 26.8 0.0
Cash flow from investing activities -17.3 -4.1 -9.2 -34.7
Cash flow from financing activities
New share issue/share premium reserve 0.0 0.0 3.8 0.0
Change in overdraft facilities 220.2 150.9 99.1 174.2
Borrowings 0.0 0.0 0.0 249.7
Dividend to shareholders 0.0 0.0 -91.1 0.0
Amortization of loans -6.7 -5.8 -105.5 -605.0
Cash flow from financing activities 213.5 145.0 -93.7 -181.1
Cash flow for the period -25.3 -7.7 -10.4 -7.4
Cash and cash equivalents at the beginning of the period4 35.8 28.6 20.9 28.2
Cash and cash equivalents at the end of the period4 10.5 20.9 10.5 20.9

4 Note that cash and cash equivalents in the cash flow are adjusted for restricted bank funds

Parent Company income statement

Amounts in SEK M Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Note 2011 2010 2011 2010
Operating income
Operating income 0.1 0.1 0.3 0.3
Total operating income 0.1 0.1 0.3 0.3
Operating expenses
Other external expenses -1.0 -0.9 -4.1 -18.9
Personnel costs -0.1 -0.1 -0.4 -0.3
Total operating expenses -1.1 -1.0 -4.5 -19.2
EBIT -1.0 -0.9 -4.2 -18.8
Profit from financial items 8.1 25.7 0.4 7.0
Profit/loss before tax 7.0 24.8 -3.8 6.9
Tax on profit/loss 0.9 10.0 3.8 10.5
Profit for the period 8.0 34.8 0.4 17.4

The profit for the period corresponds with the comprehensive income for the period

Parent Company balance sheet

Amounts in SEK M
Note
Dec 2011 Dec 2010
ASSETS
Fixed assets
Financial fixed assets 712.1 712.1
Total fixed assets 712.1 712.1
Current assets
Total current assets 15.3 13.5
TOTAL ASSETS 727.3 725.6
Amounts in SEK M
Note
Dec 2011 Dec 2010
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 356.8 447.9
Provisions 0.0 0.0
Total long-term liabilities 130.0 210.0
Current liabilities 240.5 67.7
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 727.3 725.6
Pledge assets 358.0 358.0
Contingent liabilities None None

Notes to the interim report

Note 1 Segments

Amounts in SEK M Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Net sales 2011 2010 2011 2010
Nordic region 618.3 549.1 2,987.1 2,773.0

The Group has only one identified operating segment, which is the Nordic segment.

Note 2 Disclosures about transactions with related parties

Related parties to Byggmax comprise Senzum AB and Dustin Financial Services AB. Transactions carried out during the period did not amount to any significant amounts. The transactions were conducted on market-based terms.

The Annual General Meeting 2011 resolved to adopt an incentive program encompassing approximately 20 senior executives and other key employees of Byggmax. The expiry date for the warrants will be in 3.5 years and the warrants will be exercisable in the last six months of this period. In total, 565,000 warrants have been subscribed for, entailing dilution of slightly more than 1 percent. The price of the warrants corresponded to market price (SEK 6.77 per warrant) and the valuation was conducted by an independent party. Each warrant will entitle the holder to subscribe for one share in the company at an exercise price of SEK 63.90. Participants in the warrants program have signed a pre-emption agreement.

Note 3 Disclosure on the acquisition of Svea Distribution AB

During the first quarter of 2010, an acquisition was made of Svea Distribution AB. The acquisition was completed in March 2011 and an additional purchase price of SEK 0.5 M (the acquisition valuation method includes this amount) was paid.

Note 4 Income per quarter

Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4
Amounts in SEK M 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011
Net Sales, SEK M 299.8 733.1 896.5 514.1 324.5 856.2 1,043.2 549.1 369.5 899.3 1,100.0 618.4
Gross margin, percent 27.9 29.9 30.2 29.9 29.7 29.1 30.3 29.7 29.1 29.1 30.4 31.6
EBIT, SEK M 0.6 88.7 145.6 37.8 -11.1 82.6 165.4 37.9 -13.1 83.7 156.6 50.3
EBIT margin, percent 0.2 12.1 16.2 7.4 -3.4 9.6 15.9 6.9 -3.5 9.3 14.2 8.1
Working capital, SEK M -7.1 -186.4 -167.9 21.5 66.1 -200.7 -148.9 41.1 87.7 -192.7 -112.5 177.4
Return on equity, percent -2.5 28.0 33.4 5.3 -4.3 11.7 16.5 2.7 -2.0 7.3 14.8 4.0
Cashflow from operating
activities per share, SEK
-0.9 4.8 1.7 -2.6 -0.8 5.5 1.1 -2.4 -1.0 5.6 0.6 -3.6
Shareholders' equity per
share5
, SEK
3.1 4.2 5.8 6.1 6.0 10.2 12.0 12.3 12.1 11.5 13.4 13.9
Number of stores 54 55 60 61 63 68 73 73 76 81 86 86

5 Comparative figures have been adjusted for the share split 1:3 carried out on June 2, 2010.

Definition of key ratios and figures

• Shareholders' equity per share: Shareholders' equity divided by the number of shares on the balance-sheet date

• Cash flow from operating activities per share: cash flow from operations divided by the number of shares at the balance-sheet date

• Earnings per share: profit after tax/number of shares outstanding at the end of the accounting period

• Return on equity: earnings after tax divided by average equity

• Working capital: working capital assets (inventories, current receivables) – working capital liabilities (accounts payable, current tax liabilities, other liabilities, accrued expenses and deferred income)

  • EBIT margin: EBIT/net sales
  • Shareholders' equity ratio: shareholders' equity/total assets

Definition of market specific ratios and figures

• Gross margin: (Net sales – goods for sale)/net sales

• Comparable stores: a store is classified as comparable as of the second year-end after the store was opened. Stores that are relocated to new premises in existing locations are handled in the same manner.

The information contained in this interim report is disclosed by Byggmax in compliance with the Swedish Securities Market Act (2007:528). The information was released for publication at 8.00 (CET) on January 26, 2012.

Talk to a Data Expert

Have a question? We'll get back to you promptly.