Quarterly Report • Nov 9, 2009
Quarterly Report
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Comments from CEO Mats Wäppling:
"Sweco posted robust earnings for the first nine months of 2009 in spite of a weak economy. Adjusted for the calendar effect with a lower number of billable hours and Alecta's premium rebate for 2008, operating profit is essentially on par with the previous year.
"Market development is difficult to assess. Parts of our industrial services are still struggling with weak demand and the market for certain building-related services has deteriorated. In the Baltic countries we are seeing increased activity and an improved order intake. All markets are showing sustained demand for services in environment, energy and infrastructure, and in Norway and Sweden we are continuing to recruit key competencies in these areas. In general, the market is starting to stabilise.
"Sweco won several major orders in the third quarter, including a SEK 130 million contract in connection with a Jordanian initiative to improve access to drinking water in the country's capital city of Amman and two large-scale energy contracts in Russia worth a total of SEK 80 million in which Sweco will supervise and monitor the construction of new CHP plants in Moscow and Sochi.
"Our growth strategy stands firm. Sweco's strong financial position provides a platform for continued profitable growth and a high level of preparedness to seize new opportunities. Our aim now is to grow through acquisitions in both existing and new markets in Europe."
| Profit summary, SEK M | 2009, 9 mths | 2008, 9 mths |
|---|---|---|
| Sweco Sweden | 229.5 | 288.9 |
| Sweco Norway | 95.0 | 87.9 |
| Sweco Finland | 7.0 | 13.0 |
| Sweco Central & Eastern Europe | 0.0 | 7.0 |
| Sweco Russia | 1.2 | -4.9 |
| Sweco Industry | 20.4 | 72.9 |
| Group-wide, etc. | -4.6 | -28.2 |
| Operating profit | 348.5 | 436.6 |
| Consolidated net financial items | 2.1 | -7.7 |
| Profit before tax | 350.6 | 428.9 |
The Sweco Group reported net sales of SEK 3,909.6 million (3,962.8).
Operating profit amounted to SEK 348.5 million (436.6). The number of billable hours in the first nine months of 2009 was 25 fewer than in the corresponding period of 2008. Based on the current billing ratio and hourly rate, this is equal to a negative year-onyear impact of around SEK 60 million on net sales and profit for the period. In a comparison with 2008, it should also be noted that earnings for the year-earlier period were positively affected by lower pension expenses due to a temporary premium rebate of approximately SEK 30 million.
Sweden and Norway delivered strong results. The improvement in profit for Norway compared to the previous year is mainly attributable to acquired units.
Profit in Sweco Central & Eastern Europe continues to reflect the effects of a steep economic downturn, particularly in the Baltic countries. Resource adaptations gave rise to costs of approximately SEK 6 million that were charged to earnings for the period.
Sweco Industry remains under pressure from significant slowing in the industrial sector. The sale of operating units had a positive earnings impact of around SEK 12 million.
The Group's overall operating margin was 8.9 per cent (11.0). The billing ratio, including all administrative personnel, was 73.8 per cent (76.0).
Profit before tax amounted to SEK 350.6 million (428.9). The Group's net financial items totalled SEK 2.1 million (-7.7).
Profit after tax was SEK 248.6 million (306.5) of which SEK 247.0 million (305.8) is attributable to equity holders of the Parent Company.
Return on equity was 25.3 per cent (39.3) and return on capital employed was 33.1 per cent (43.7).
No significant transactions with related parties took place during the period.
Earnings per share were SEK 2.80 (3.56) before dilution and SEK 2.78 (3.54) after dilution.
Net expenditure on equipment totalled SEK 44.8 million (58.4) and referred mainly to computers and other IT investments. Depreciation of equipment amounted to SEK 57.0 million (53.7) and amortisation of intangible assets was SEK 22.4 million (17.0).
Purchase consideration paid for the acquisition of companies amounted to SEK 26.5 million (257.4) and purchase consideration received on the sale of operations totalled SEK 16.6 million (40.3). The total effect on consolidated cash and cash equivalents including payment of purchase consideration from acquisitions in prior years was SEK -12.5 million (-156.7).
The Group's cash flow from operating activities was SEK 280.0 million (298.6).
Cash and cash equivalents and short-term investments amounted to SEK 334.4 million (205.0). Disposable cash and cash equivalents including unutilised bank overdraft facilities at the end of the period totalled SEK 888.7 million (621.4). Interest-bearing debt is reported at SEK 144.7 million (263.1). The net interest-bearing receivable was thus SEK 189.7 million (net debt of SEK 58.1 million).
During the period, dividends were paid to the company's shareholders in a total amount of SEK 174.3 million (170.6).
The equity/assets ratio was 51.4 per cent (43.0).
The number of employees at 30 September 2009 was 5,207 (5,496). The average number of employees in the Group during the period was 5,173 (5,410).
The third quarter was marked by the effects of a weak economy.
Net sales reached SEK 1,062.8 million (1,159.1). Operating profit amounted to SEK 64.8 million (101.6) and operating margin was 6.1 per cent (8.8). Earnings for the quarter were affected by a capital gain of SEK 6 million on the sale of operations in Sweco Industry and costs of SEK 2 million for resource adaptations in the Baltic countries. In a comparison with the previous year's operating profit, it should also be noted that the difference is partly due to a calendar effect and the 2008 premium rebate from Alecta, which together amounted to around SEK 19 million,. The billing ratio was 72.7 per cent (74.0). The somewhat lower billing ratio is mainly attributable to industrial operations in Finland and certain building-related operations in Sweden.
The Parent Company recorded net sales of SEK 46.6 million (51.2), all of which refers to intra-group services. Profit after net financial items was SEK -4.4 million (-19.0). Capital expenditure on equipment amounted to SEK 0.0 million (0.0) and cash and cash equivalents at the end of the period totalled SEK 186.6 million (95.7).
Sweco is listed on NASDAQ OMX Stockholm. The bid price for the Sweco B share at the end of the period was SEK 58, representing an increase of 66 cent since the beginning of the year. The OMX Stockholm General Index rose by 37 per cent over the same period.
The total number of shares is 92,002,110, of which 9,389,075 are of class A, 80,113,035 are of class B and 2,500,000 are of class C. After deduction of treasury shares, the number of shares outstanding at 30 September 2009 was 88,943,037, of which 9,389,075 were of class A and 79,553,962 were of class B.
A total of 1,300,000 warrants have been subscribed for in the warrant series 2008/2011, equal to a dilutive effect of 1.4 per cent on the share capital and 0.7 per cent on the votes. In addition, 400,000 subscription warrants have been retained for possible award to future senior executives. The warrants may be exercised for subscription to shares during the period from 30 May 2011 to 30 November 2011 at an exercise price of SEK 65 per share.
Sweco holds a total of 3,059,073 treasury shares, of which 559,073 are of class B and 2,500,000 are of class C. The treasury shares correspond to 3.3 per cent of the total number of shares and 1.7 per cent of the votes. The class B treasury shares can be used as consideration in corporate acquisitions. The shares were purchased at average price of SEK 22.10, equal to a total of SEK 12.4 million. The market value at the end of the period was SEK 32.4 million.
The engineers, architects and environmental experts at Sweco are working together to contribute to the development of a sustainable society. With around 5,200 employees, the Sweco Group is one of the largest players in Europe and a market-leader in several segments of the Nordic, Baltic, Czech and northwestern Russian markets. Sweco has a local presence in ten countries and projects currently under way 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.
Demand for industrial services remains low in Finland, particularly in the pulp and paper and electronics industries. The effects of the economic downturn are also starting to become visible in Sweco's other areas of operation, for example in declining demand for Sweco's architectural services. In the Baltic region, however, Sweco is noting higher activity and an improved order intake.
Measures to adjust to the new market conditions consist mainly of intensified marketing activities, resource adaptations and a review of costs and investments. In the third quarter, the number of employees was reduced by around 80. At the end of the period some 165 employees had been given notice of temporary redundancy, mainly in Finland and the Baltic countries.
At the same time, Sweco is seeing sustained strong demand for its services in environment, energy and infrastructure and is continuing to recruit key competencies in these areas in Sweden and Norway.
The fundamental drivers behind demand for Sweco's services are population growth and urbanisation, a growing awareness of environmental and climate issues and modernisation of the new EU member states. These trends are creating new business opportunities and stimulating demand for services that contribute to sustainable development. Sweco's strong market positions in environment, energy and infrastructure vouch for positive long-term development.
The growth strategy stands firm. Sweco's strong financial position provides a platform for continued profitable growth and a high level of preparedness to seize new opportunities. The aim now is to grow through acquisitions in both existing and new markets in Europe.
Sweco Sweden is the country's leading provider of consulting engineering services and the Group's largest business area, with more than 2,600 employees in 49 locations. Services are offered in the areas of Architecture, Structural Engineering, Building Service Systems, Infrastructure, Water & Environment, Project Management, Energy Systems and Geographic IT. Sweco Sweden also has extensive project exports to countries in Eastern Europe, Africa, Asia, the Middle East and Latin America.
Net sales amounted to SEK 2,148.0 million (2,181.1). Operating profit was SEK 229.5 million (288.9) and operating margin was 10.7 per cent (13.2).
Development in the Swedish market has been stable in the majority of Sweco's service segments. The outlook is positive in the infrastructure segment and long-term growth is anticipated in the energy area, with a focus on wind and hydroelectric power. The market for geographical IT is expanding with a steadily rising number of applications. Demand for water and environment services is holding firm, particularly in the area of water supply (treatment, distribution, storm water management, etc.) where demand is increasing dramatically both in Sweden and internationally. The market for buildingrelated services for the industrial sector and private construction and real estate companies remains weak and there is uncertainty about future investments. Above all, demand for architectural services has deteriorated.
Notable new contracts during the period included a record order in connection with a Jordanian initiative to improve access to drinking water in the country's capital city of Amman. The order, worth SEK 130 million, is one of Sweco's largest environmental contracts ever. The assignment will be carried out directly for the Jordanian government. In addition, Sweco was recently selected to develop a technical solution for a new dam on an industrial site for LKAB's mining operations in Kiruna. The contract is worth around SEK 10 million. In another major assignment, Sweco will
investigate the condition of some 50 lakes and waterways throughout Sweden by measuring and evaluating the presence of chemicals.
Sweco is one of Norway's largest engineering consultancies, with around 840 employees. The Norwegian business area, which also has some export operations, is organised in six divisions: Energy, Water & Environment, Building & Construction, Infrastructure, Building Service Systems and Vest.
Net sales grew by 15 per cent to SEK 943.5 million (824.0). Operating profit amounted to SEK 95.0 million (87.9), an increase of 8 per cent. Operating margin was 10.1 per cent (10.7).
The general economy in Norway improved in the third quarter. Better access to capital and rising consumption have contributed to a growing sense of optimism.
In the construction sector, development of commercial and office space remains weak, while increased activity is being noted in other building-related segments. Investments in the industrial sector are still low but there are increasingly clear signals of a recovery in the coming year. In addition, an urgent need to modernise the country's water and wastewater treatment facilities indicates good long-term demand potential for water and environmental services. In the road and transport sector, several previously postponed projects have now been started and demand for consulting engineering services has risen. There is a high level of activity in the energy area, among other things with regard to small-scale hydropower, bioenergy and district heating.
New orders during the period include contracts for preconstruction planning of a new water park in Fosnavåg in western Norway and planning of building service systems for a new solar cell factory in Germany on behalf of Innotech Solar. Sweco has also been given responsibility for preconstruction planning of a new water treatment plant for the Municipality of Ullensaker and preparation of construction plans for three tunnels with a total length of 1.8 km on the new section of the E6 motorway in Alta.
The business area has around 70 employees in the subsidiary Sweco PM, which provides project management services to clients in the infrastructure, construction and industrial sectors.
Net sales reached SEK 69.5 million (94.4). Operating profit was SEK 7.0 million (13.0) and operating margin was 10.0 per cent (13.8).
Demand has fallen in all segments, although stabilisation is awaited in the infrastructure area. At present, there are no signs of a turnaround and market development is very difficult to assess.
New projects during the period include additional orders connected to expansion of the new Western Metro subway line in Helsinki, as well as construction management for a new student housing project in central Helsinki.
Sweco Central & Eastern Europe has around 720 employees and is active in Estonia, Lithuania, the Czech Republic, Slovakia and Bulgaria. The units in these markets also have project exports to the neighbouring countries and to Iraq and Africa.
Net sales are reported at SEK 212.7 million (207.4). Operating profit was SEK 0.0 million (7.0) and operating margin was 0.0 per cent (3.4).
Growth in Central and Eastern Europe has stagnated. The assessment is that the ongoing adaptation to EU standards will continue, but at a more moderate pace.
Sweco's operations in Central and Eastern Europe are concentrated in the water, environment and energy areas. Sustained strong demand for these services indicates potential for positive long-term development. Economic slowing is having a tangible impact in Estonia and Lithuania, although improved demand for Sweco's services was noted during the period. In the Czech Republic and Bulgaria, the market situation remains stable.
Sweco won several new contracts in Central and Eastern Europe during the period. Among other things, Sweco's Estonian consultants have been chosen to plan an oil terminal in Angola and a 15 km motorway extension in Estonia. In Lithuania, Sweco has been selected to plan a gas combined-cycle power plant outside Vilnius and a sludge separation facility in the city of Siauliai. In Bulgaria, Sweco will plan and supervise the construction of five hydropower plants. In the Czech Republic, Sweco has been commissioned to design flood protectors for the city of Děčín on the Elbe River, near the German border.
Sweco Russia conducts operations mainly through the subsidiary Lenvodokanalproekt with offices in St. Petersburg and Saratov and a total of around 150 employees. Lenvodokanalproekt is one of the country's leading water and environment consultancies. Sweco Russia also coordinates project exports from Sweden, Norway, Finland and the Czech Republic to the Russia market, primarily in the areas of water and environment, infrastructure, industry and architecture.
Net sales amounted to SEK 24.0 million (14.2). Operating profit was SEK 1.2 million (-4.9) and operating margin was 5.1 per cent (-34.7).
There is an urgent need for modernisation of the country's water and sewage systems and a number of regional development programmes are planned. Russia's public finances remain strong and investments in this area are expected to rise. At the same time, demand for privately-funded water and environmental services, primarily in the industrial sector, has fallen sharply.
During the period, Sweco was commissioned for several major publicly-funded water and wastewater treatment assignments, among other things in connection with the construction of a new water treatment plant in Kaliningrad. A shortage of consulting engineering expertise in the former Soviet states is opening opportunities for Sweco in countries like Ukraine, Tajikistan and Kazakhstan. Sweco was recently awarded a major contract for renovation of a hydropower plant in the city of Dushanbe in Tajikistan.
Sweco Industry is the Group's resource for qualified industrial consulting services. The business area's capabilities include consulting, planning, engineering, and project management services for product development, production optimisation and plant investment. With more than 550 employees in Finland, 200 in Sweden and 20 in Norway, Sweco Industry is one of the Nordic region's largest industrial engineering consultancies. Sweco Industry also has extensive international operations in the rest of Europe, Asia and South America.
The business area works with a focus on the chemical and petrochemical industry, the pulp and paper industry, the offshore industry, energy and product development.
Net sales for the period totalled SEK 587.0 million (734.5). Operating profit amounted to 20.4 million (72.9) and operating margin was 3.5 per cent (9.9).
Demand for industrial consultants in Finland has been severely dampened by economic slowing. The market downturn and postponed investments have primarily affected the Finnish electronics and pulp and paper industries, but have so far not had an appreciable impact on demand for industrial services in Sweden and Norway. In the chemical and energy areas, the market is relatively good in Finland, Russia and Eastern Europe.
Among other things, Sweco's industrial consultants have been awarded two major energy contracts in Russia worth a total of SEK 80 million to supervise and monitor the construction of new CHP plants in Moscow and Sochi. Other contracts received during the period include assignments connected to the construction of CHP plants in Poland and France. In Finland, Sweco's industrial consultants were commissioned to provide additional services for the modernisation of UPM's paper mill in Kajana.
In the third quarter Sweco acquired the energy consulting company EME Analys AB in Stockholm, with six employees. EME Analys works mainly with market analyses and forecast models in the energy sector and assists commercial energy buyers with knowledge and experience.
In the third quarter Sweco has sold the Finnish industrial operation's unit for the shipbuilding industry, with 64 employees, to the Korean company STX Europe.
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 Companies Act and the Swedish Financial Reporting Board's recommendation RFR 2.2, Accounting for Legal Entities. As of 1 January 2009 Sweco applies IFRS 8, Operating Segments, and IAS 1, Presentation of Financial Statements. The application of IFRS 8 has not led to any changes in the reported segments. IAS 1 has resulted in a new structure for the statement of changes in equity and Sweco has chosen to present a separate statement of comprehensive income. In other respects, the accounting and valuation standards applied in this year-end report are the same as those described in Note 1 of the annual report for 2008.
The significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks tied to the general economic trend and investment propensity 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 44 of Sweco's 2008 annual report, "Risk Management".
The Annual General Meeting will be held on Thursday, 29 April 2010, at Hotel Rival, Mariatorget 3, in Stockholm.
| Year-end report 2009 | 12 February |
|---|---|
| Interim report January-March | 29 April |
| Interim report January-June | 20 July |
| Interim report January-September | 2 November |
The market situation for building-related and industrial services remains weak. In general, however, the market is starting to stabilise.
Sweco's ambition is to achieve sustained profitable growth by strengthening its market positions in the Nordic region and Central and Eastern Europe. Sweco's healthy finances and leading market positions in several important growth areas such as environment, infrastructure and energy, provide a platform for stable long-term development.
Stockholm, 9 November 2009 SWECO AB (publ)
Mats Wäppling President and CEO
We have reviewed this report for the period 1 January 2009 to 30 September 2009 for SWECO AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm, 9 November 2009 PricewaterhouseCoopers AB
Lennart Danielsson Authorised Public Accountant Auditor in charge
Mats Wäppling, President & CEO of SWECO AB (publ) Telephone: +46 8 695 66 07 / Mobile: +46 70 645 03 21 [email protected]
Bo Jansson, Vice President & CFO of SWECO AB (publ) Telephone: +46 8 695 66 06 / Mobile: +46 73 412 66 06 [email protected]
SWECO AB (publ) Corporate identity number 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
The information contained herein may be subject to the disclosure requirements of Sweco pursuant to the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 9 November 2009, 12:10 CET.
| Income statement, SEK M | July-Sept | July-Sept | Jan-Sept | Jan-Sept | Oct 2008- | Full year |
|---|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | Sept 2009 | 2008 | |
| Net sales | 1,062.8 | 1,159.1 | 3,909.6 | 3,962.8 | 5,469.6 | 5,522.8 |
| Other operating income | 5.6 | 8.8 | 11.6 | 8.8 | 15.6 | 12.8 |
| Other external expenses | -296.3 | -332.9 | -1,016.6 | -1,039.0 | -1,473.7 | -1,496.1 |
| Personnel costs | -681.0 | -708.6 | -2,476.2 | -2,424.7 | -3,383.0 | -3,331.5 |
| Amortisation/depreciation and impairment | -26.3 | -24.8 | -79.9 | -71.3 | -120.3 | -111.7 |
| Operating profit | 64.8 | 101.6 | 348.5 | 436.6 | 508.2 | 596.3 |
| Net financial items | -4.1 | -1.8 | 2.1 | -7.7 | 1.7 | -8.1 |
| Profit before tax | 60.7 | 99.8 | 350.6 | 428.9 | 509.9 | 588.2 |
| Income tax expense | -19.2 | -29.6 | -102.0 | -122.4 | -164.9 | -185.3 |
| Profit for the period | 41.5 | 70.2 | 248.6 | 306.5 | 345.0 | 402.9 |
| Profit for the period attributable to: | ||||||
| Equity holders of the Parent Company | 40.9 | 69.9 | 247.0 | 305.8 | 344.8 | 403.6 |
| Minority interests | 0.6 | 0.3 | 1.6 | 0.7 | 0.2 | -0.7 |
| Earnings per share for profit attributable to equity holders in the Parent Company, SEK |
||||||
| - Basic EPS | 0.46 | 0.80 | 2.80 | 3.56 | 3.92 | 4.68 |
| - Diluted EPS | 0.46 | 0.80 | 2.78 | 3.54 | 3.89 | 4.65 |
| Dividend per share, SEK | - | - | - | - | - | 2.00 |
| Statement of comprehensive income, | July-Sept | July-Sept | Jan-Sept | Jan-Sept | Oct 2008- | Full year |
| SEK M | 2009 | 2008 | 2009 | 2008 | Sept 2009 | 2008 |
| Profit for the period | 41.5 | 70.2 | 248.6 | 306.5 | 345.0 | 402.9 |
| Translation differences | -32.4 | 16.0 | -18.7 | 22.2 | 24.5 | 65.4 |
| Comprehensive income for the period | 9.1 | 86.2 | 229.9 | 328.7 | 369.5 | 468.3 |
| Comprehensive income attributable to: | ||||||
| Equity holders of the Parent Company | 9.1 | 85.3 | 228.8 | 327.4 | 367.6 | 466.2 |
| Minority interests | 0.0 | 0.9 | 1.1 | 1.3 | 1.9 | 2.1 |
| Cash flow statement, SEK M | July-Sept | July-Sept | Jan-Sept | Jan-Sept | Oct 2008- | Full year |
|---|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | Sept 2009 | 2008 | |
| Cash flow from operating activities before changes in working capital and paid tax |
101.4 | 135.0 | 459.9 | 550.4 | 696.9 | 787.4 |
| Paid tax | - | -14.1 | -116.0 | -114.8 | -143.4 | -144.2 |
| Changes in working capital | -36.1 | -3.0 | -63.9 | -137.0 | -19.4 | -86.1 |
| Cash flow from operating activities | 65.3 | 117.9 | 280.0 | 298.6 | 534.1 | 557.1 |
| Cash flow from investing activities | -69.0 | 32.0 | -119.7 | -232.4 | -156.0 | -273.1 |
| Cash flow from financing activities | -84.2 | -105.5 | -189.5 | -66.0 | -300.0 | -176.5 |
| Cash flow for the period | -87.9 | 44.4 | -29.2 | 0.2 | 78.1 | 107.5 |
| Balance sheet, SEK M | 30 Sept 2009 | 30 Sept 2008 | 31 Dec 2008 |
|---|---|---|---|
| Goodwill | 782.4 | 763.1 | 771.7 |
| Other intangible assets | 60.5 | 61.5 | 69.6 |
| Tangible assets | 180.0 | 176.8 | 191.2 |
| Financial assets | 59.1 | 83.4 | 59.0 |
| Current assets excl. cash and cash equivalents Cash and cash equivalents incl. short-term investments |
1,517.4 334.4 |
1,608.8 205.0 |
1,599.7 321.3 |
| Total assets | 2,933.8 | 2,898.6 | 3,012.5 |
| Equity attributable to equity holders of the Parent Company Minority interests |
1,497.5 10.4 |
1,226.0 19.4 |
1,401.9 12.9 |
| Total equity | 1,507.9 | 1,245.4 | 1,414.8 |
| Non-current liabilities | 139.2 | 102.0 | 134.1 |
| Current liabilities | 1,286.7 | 1,551.2 | 1,463.6 |
| Total equity and liabilities | 2,933.8 | 2,898.6 | 3,012.5 |
| Pledged assets | - | - | 0.4 |
| Contingent liabilities | 152.5 | 102.5 | 121.3 |
| Changes in equity, SEK M | Jan-Sept 2009 | Jan-Sept 2008 | ||||
|---|---|---|---|---|---|---|
| Equity attributable to equity holders of the Parent Company |
Minority interests |
Total equity |
Equity attributable to equity holders of the Parent Company |
Minority interests |
Total equity |
|
| Equity, opening balance | 1,401.9 | 12.9 | 1,414.8 | 931.9 | 18.4 | 950.3 |
| Comprehensive income for the period | 228.8 | 1.1 | 229.9 | 327.4 | 1.3 | 328.7 |
| Capital distribution to the shareholders | -174.3 | -0.8 | -175.1 | -170.6 | -0.8 | -171.4 |
| Minority interests in acquired companies | - | - | - | - | 1.0 | 1.0 |
| Purchase of minority interests | - | -2.8 | -2.8 | - | -1.5 | -1.5 |
| Issue of treasury shares | - | - | - | 27.3 | - | 27.3 |
| Issue of shares – warrant programme | - | - | - | 42.4 | 1.0 | 43.4 |
| Issue of warrants | 0.1 | - | 0.1 | 8.0 | - | 8.0 |
| 2007 share bonus programme | - | - | - | -5.4 | - | -5.4 |
| 2008 share bonus programme | -11.3 | - | -11.3 | 65.0 | - | 65.0 |
| 2009 share bonus programme | 52.3 | - | 52.3 | - | - | - |
| Equity, closing balance | 1,497.5 | 10.4 | 1,507.9 | 1,226.0 | 19.4 | 1,245.4 |
| Key ratios1) | Jan-Sept 2009 |
Jan- Sept 2008 |
Full year 2008 |
|---|---|---|---|
| Operating margin, % | 8.9 | 11.0 | 10.8 |
| Profit margin, % | 9.0 | 10.8 | 10.6 |
| Return on equity, % | 25.3 | 39.3 | 34.6 |
| Return on capital employed, % | 33.1 | 43.7 | 44.4 |
| Equity/assets ratio, % Equity per share for profit attributable to equity holders of the Parent Company, SEK |
51.4 | 43.0 | 47.0 |
| - Basic equity | 16.84 | 14.09 | 16.09 |
| - Diluted equity | 16.84 | 14.09 | 15.72 |
| Interest-bearing liabilities, SEK M | 144.7 | 263.1 | 161.2 |
| Of which, liabilities to credit institutions | 137.9 | 261.3 | 154.6 |
| Average number of employees | 5,173 | 5,410 | 5,453 |
| Average number of shares | 88,143,573 | 85,934,063 | 86,228,335 |
| Average diluted number of shares | 88,944,394 | 86,408,275 | 86,753,004 |
| Number of shares on closing date | 88,943,037 | 87,044,963 | 87,144,243 |
| Number of shares on closing date after dilution | 88,943,037 | 87,044,963 | 89,172,369 |
| Number of shares on closing date after full dilution | 90,243,037 | 88,296,963 | 90,424,369 |
| Number of class B and C treasury shares | 3,059,073 | 2,357,867 | 2,357,867 |
1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2008.
| Net sales, operating profit, operating margin and average number of employees for the period January-September | |
|---|---|
| ---------------------------------------------------------------------------------------------------------------- | -- |
| Business area | Net sales SEK M |
Operating profit Operating margin SEK M % |
Average no. of employees |
|||||
|---|---|---|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |
| Sweco Sweden | 2,148.0 | 2,181.1 | 229.5 | 288.9 | 10.7 | 13.2 | 2,526 | 2,448 |
| Sweco Norway | 943.5 | 824.0 | 95.0 | 87.9 | 10.1 | 10.7 | 845 | 803 |
| Sweco Finland Sweco Central & |
69.5 | 94.4 | 7.0 | 13.0 | 10.0 | 13.8 | 71 | 89 |
| Eastern Europe | 212.7 | 207.4 | 0.0 | 7.0 | 0.0 | 3.4 | 724 | 794 |
| Sweco Russia | 24.0 | 14.2 | 1.2 | -4.9 | 5.1 | -34.7 | 148 | 113 |
| Sweco Industry Group-wide, |
587.0 | 734.5 | 20.4 | 72.9 | 3.5 | 9.9 | 845 | 1,149 |
| eliminations, etc. | -75.1 | -92.8 | -4.6 | -28.2 | - | - | 14 | 14 |
| Total Group | 3,909.6 | 3,962.8 | 348.5 | 436.6 | 8.9 | 11.0 | 5,173 | 5,410 |
Operating profit for group-wide consists mainly of the Parent Company's loss of SEK -14.2 million (-21.2).
In the period under review, Sweco acquired EME Analys AB and operations in EL design AS and H Nilsson Byggkonsult AB. During the year Sweco has also acquired minority interests in Sweco Projekt and adjusted and settled the additional purchase consideration regarding Hidroprojektas, B&B VVS Konsult AB, Sweco Paatela Architects Oy and Sweco EuroFutures AB. Based on a preliminary purchase price allocation, these acquisitions have affected the Group's balance sheet and cash and cash equivalents as shown in the table below. Since the beginning of the year, the acquired companies have contributed net sales of SEK 5.1 million and operating profit of SEK 0.8 million. If all of the companies had been acquired at 1 January 2009, the Sweco Group's net sales would have increased by an additional amount of approximately SEK 3.4 million and operating profit would have improved by approximately SEK 0.3 million.
| Acquisitions | Divestitures | |
|---|---|---|
| SEK M | ||
| Assets in acquired and divested companies | 9.6 | 5.0 |
| Liabilities in acquired and divested companies | -5.4 | - |
| Minority interest recognised on acquisition | 2.8 | - |
| Surplus values | ||
| Goodwill, customer relationships, order book, etc. | 19.9 | - |
| Deferred tax | -0.4 | - |
| Capital gain recognised on divestiture | - | 11.6 |
| Total purchase price | 26.5 | 16.6 |
| Unsettled purchase price commitments | -7.1 | -4.0 |
| Settled purchase price commitments for acquisitions in earlier years |
10.8 | - |
| Cash and cash equivalents in acquired companies | -5.1 | |
| Effect on the Group's cash and cash equivalents1) | 25.1 | 12.6 |
During the period, Sweco sold the Finnish industrial operation's units for industrial electronics, industrial design and the shipbuilding industry. The units have 38, 31 and 63 employees, respectively, and contributed net sales of SEK 36.4 million and operating profit of SEK 2.8 million during the period. The sale of these units provided a capital gain of SEK 11.6 million. No subsidiaries have been divested.
1) Acquisitions have decreased the Group's cash and cash equivalents by SEK 25.1 million and divestitures have improved the Group's cash and cash equivalents by SEK 12.6 million. The net effect on the Group's cash and cash equivalents is SEK –12.5 million.
| Five-year overview1) | Oct 2008- | ||||
|---|---|---|---|---|---|
| Sept 2009 | 2008 | 2007 | 2006 | 2005 | |
| Net sales, SEK M | 5,469.6 | 5,522.8 | 4,569.5 | 3,894.7 | 3,372.2 |
| Operating profit, SEK M | 508.2 | 596.3 | 432.5 | 361.9 | 271.6 |
| Profit before tax, SEK M | 509.9 | 588.2 | 425.7 | 364.4 | 351.2 |
| Operating margin, % | 9.3 | 10.8 | 9.5 | 9.3 | 8.1 |
| Billing ratio, % | 74.0 | 75.6 | 76.1 | 75.3 | 74.2 |
| Return on equity, % | 25.3 | 34.6 | 33.8 | 29.9 | 35.3 |
| Return on capital employed, % | 33.1 | 44.4 | 41.7 | 38.2 | 38.1 |
| Equity/assets ratio, % | 51.4 | 47.0 | 39.0 | 40.8 | 43.2 |
| Earnings per share, SEK | |||||
| - Basic EPS | 3.92 | 4.68 | 3.53 | 3.00 | 3.18 |
| - Diluted EPS | 3.89 | 4.65 | 3.46 | 2.99 | 3.17 |
| Dividend per share, SEK | - | 2.00 | 2.00 | 1.50 | 1.10 |
| Redemption amount per share, SEK | - | - | - | 1.70 | 2.00 |
| Average number of employees | 5,277 | 5,453 | 4,699 | 3,986 | 3,626 |
1) The definitions of key ratios are unchanged and can be found in Sweco's annual report for 2008.
| Parent Company income statement, | Jan-Sept | Jan-Sept | Full year |
|---|---|---|---|
| SEK M | 2009 | 2008 | 2008 |
| Net sales | 46.6 | 51.2 | 67.9 |
| Other external expenses | -38.3 | -45.3 | -59.1 |
| Personnel costs | -22.3 | -26.8 | -31.7 |
| Amortisation/depreciation and impairment | -0.2 | -0.3 | -0.4 |
| Operating loss | -14.2 | -21.2 | -23.3 |
| Net financial items | 9.8 | 2.2 | 443.3 |
| Profit after financial items | -4.4 | -19.0 | 420.0 |
| Appropriations | - | - | -104.0 |
| Profit before tax | -4.4 | -19.0 | 316.0 |
| Income tax expense | - | - | -87.3 |
| Profit after tax | -4.4 | -19.0 | 228.7 |
| Parent Company balance sheet, SEK M | 30 Sept 2009 | 30 Sept 2008 | 31 Dec 2008 |
|---|---|---|---|
| Tangible assets | 0.8 | 1.0 | 1.0 |
| Financial assets | 376.9 | 474.0 | 431.1 |
| Current assets | 1,089.8 | 779.4 | 1,713.8 |
| Total assets | 1,467.5 | 1,254.4 | 2,145.9 |
| Equity | 1,150.1 | 1,013.1 | 1,295.4 |
| Untaxed reserves | 104.0 | - | 104.0 |
| Current liabilities | 213.4 | 241.3 | 746.5 |
| Total equity and liabilities | 1,467.5 | 1,254.4 | 2,145.9 |
The decrease in financial assets between years is explained mainly by the change in non-current receivables from subsidiaries.
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