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Lindab International

Earnings Release Feb 12, 2008

2938_10-k_2008-02-12_f1ec6f15-03ef-47a1-beb0-ed75a66320d8.pdf

Earnings Release

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lindab fourth quarter and full year 2007

Strong growth with high margins Fourth quarter 2007

  • Net sales increased by 15 % to SEK 2,485 m (2,152)
  • Operating profit (EBIT) increased by 31 % to SEK 370 m (282), excluding one-off items for 2006 1)
  • The operating margin (EBIT) increased to 14.9 % (13.1), excluding one-off items for 2006 1)
  • Diluted earnings per share amounted to SEK 3.14 (1.59)
  • Cash flow from operating activities amounted to SEK 575 m (267)

Full year 2007

  • Net sales increased by 22 % to SEK 9,280 m (7,609)
  • Operating profit (EBIT) amounted to SEK 1 309 m (933), an improvement of 40 %, excluding one-off items for 2006 2)
  • The operating margin (EBIT) increased to 14.1 % (12.3), excluding one-off items for 2006 2)
  • Diluted earnings per share amounted to SEK 11.45 (6.29)
  • Cash flow from operating activities amounted to SEK 875 m (778)
  • Proposed dividend, SEK 5.25, an increase of 62 % compared with 2007
  • Mandate request for a share buy-back of up to a maximum value of SEK 400 m

1) Restructuring costs of SEK 41 m and costs relating to flotation on the stock market of SEK 25 m

2) Restructuring costs of SEK 41 m and costs relating to flotation on the stock market of SEK 25 m as well as capital gains on property sales of SEK 27 m

®

Fourth quarter and full year 2007

Sales and market

Net sales during the fourth quarter amounted to SEK 2,485 m, which is an increase of 15 percent compared with the corresponding period the previous year. The increase in net sales, adjusted for currency effects and structure, amounted to 10 percent. The weakening of the Swedish Krona has increased net sales by 1 percentage point, while acquisitions contributed 4 percentage points to the increase in net sales. Price increases have been marginal during the quarter.

Sales in the Nordic region have grown by 13 percent during the quarter. The increase in net sales in Central and Eastern Europe and the CIS amounted to 13 percent. Excluding Hungary, which shows continued weak demand due to fiscal constraints, the increase in net sales amounts to 22 percent.

Sales in Western Europe continued to develop well and net sales rose by 26 percent. Excluding the acquisitions of CCL in the UK, Airbat in France and Aervent in Ireland, the increase was 9 percent.

Net sales for the full year 2007 amounted to SEK 9,280 m, which is an increase of 22 percent compared with the corresponding period the previous year. The increase in net sales for comparable units amounted to 14 percent. Fluctuations in the currency exchange rate have marginally affected net sales during the year.

Lindab's main market is non-residential construction, accounting for 80 percent of

sales while residential represents 20 percent of sales. This sales mix, together with Lindab's geographical sales distribution has led to continued strong demand in all regions during the quarter.

Profit

The operating profit (EBIT) for the fourth quarter amounted to SEK 370 m, which is an increase of 31 percent compared with the previous year's result of SEK 282 m (excluding one-off items). The fourth quarter of 2006 was affected by one-off costs amounting to SEK 66 m. Restructuring costs relating to the integration of the acquisition, CCL Veloduct Ltd, amounted to SEK 41 m, and costs relating to the stock market flotation amounted to SEK 25 m. The explanation for the improved profit is a strong growth in volumes combined with good cost control and the acquisition of CCL Veloduct Ltd.

Adjusted for one-off items, the operating margin (EBIT) during the period October-December improved by 1.8 percentage points to 14.9 percent.

Profit after financial items increased to SEK 333 m (186). The after-tax profit amounted to SEK 247 m (125).

Diluted earnings per share amounted to SEK 3.14 (1.59).

The operating profit (EBIT) for the full year amounted to SEK 1,309 m, which is an increase of 40 percent compared with the previous year's result of SEK 933 m, exclu-

Operating profit, (EBIT) SEK m

ding one-off items. The equivalent figure, including one-off items for 2006 amounted to SEK 894 m. One-off items for the full year of 2006, in addition to what was reported for the fourth quarter was a capital gain from the sale of properties during the third quarter of 2006, which amounted to SEK 27 m.

The operating margin (EBIT) for the full year amounted to 14.1 percent (12.3) excluding one-off items for 2006.

Profit after financial items for the full year improved to SEK 1,175 m (797). After tax profit totalled SEK 901 m (585).

Diluted earnings per share amounted to SEK 11.45 (6.29), an increase of 82 percent.

Investments

Net investments for the quarter including acquisitions and divestments amounted to SEK 118 m (348).

The net investment for the quarter includes the acquisition of Aervent Holdings Ltd. for SEK 41 m. In 2006 the acquisitions of CCL and Airbat for SEK 311 m were included. Adjusted for acquisitions and divestments, net investments amounted to SEK 77 m (37).

Net investments for the full year, including acquisitions and divestments, amounted to SEK 225 m (424). When adjusted for business acquisitions and divestments, the total was SEK 177 m (50). Adjusted for the divestment of properties, investments in 2006 amounted to SEK 125 m. The investment in the new production unit for Building Systems in Russia amounted to SEK 41 m for the period January-December. The unit is expected to be completed during the fourth quarter of 2008.

The final acquisition analyses for CCL Veloduct Ltd and Airbat S.A. (2006) were established during the second quarter. These led to an increased payout of SEK 5 m for CCL and thereby increased goodwill. For Airbat there was a reduction in the purchase price and goodwill by SEK 2 m. Furthermore, an additional SEK 4 m earnout payment was made for Lindab Building Systems Kft.

These adjustments are reported from the acquisition date, which means that the comparative figures as at 31 December 2006 have been adjusted by corresponding amounts.

Net sales, SEK m

Cash flow

Cash flow from operating activities amounted to SEK 575 m for the quarter compared with SEK 267 m for the same period the previous year. A higher operating profit contributed to the improved cash flow, while at the same time, tax payments during the quarter have been significantly lower in 2007 than 2006.

The working capital has decreased, compared to the end of September partly due to the activities initiated in order to reduce stock levels with a focus on the raw material stocks and partly due to a seasonal decrease in activity at the end of the period. The reduction in steel purchases has resulted in reduced trade creditors.

The cash flow from investing activities amounted to SEK –118 m (–348).

For the full year, cash flow from operating activities amounted to SEK 875 m (778). The cash flow from investing activities amounted to SEK –225 m (–424), SEK –177 m (–50) when adjusted for acquisitions and divestments. Financing activities amounted to SEK –487 m (–395). The single largest items were the dividend to shareholders of SEK 256 m (-), net amortization of SEK 231 m (net borrowing 707), and a share redemption the previous year of SEK 1,196 m.

Financial position

At 31 December 2007, the net debt was SEK 2,238 m (2,602).

At 31 December the equity ratio amounted to 39 percent (31) and the net debt/equity ratio 0.75 (1.19).

Net financial items for the quarter amounted to SEK –37 m (–30). For the twelve month period, net financial items amounted to SEK –134 m (–97). The weakened net financial items were due to higher indebtedness and higher interest rates.

Available funds including unused credit facilities totalled SEK 2,679 m (1,468).

During the fourth quarter, a new credit agreement of SEK 4,500 m was signed, with a 5 year term. The agreement has been entered into with two banks, Nordea and Handelsbanken and involves an improvement in conditions compared with previous agreements. It replaces the previous agreement for SEK 3,200 m.

Company acquisitions

On 2 October, Lindab acquired all the shares in the Irish ventilation company Aervent Holdings Ltd. The company is a leading ventilation supplier within non-residential construction in Ireland. The company has approximately thirty employees in Dublin and Cork. The deal means that Lindab has established itself within the Irish market. The purchase price was SEK 68 m (debt free). The costs directly attributable to the acquisition of Aervent amounted to SEK 2 m, giving a preliminary purchase price of SEK 70 m. The acquisition means that the net debt increased by SEK 69 m including SEK 28 m in debt taken over with the acquisition. The value of the acquired net debt is estimated to be SEK 3 m, giving a consolidated goodwill of SEK 44 m. The acquisition goodwill is attributable to the company's strong market position but also the synergy effects that are expected to arise following the acquisition. Aervent was consolidated on 1 October 2007. This resulted in a SEK 25 m increase in net sales during 2007 and a SEK 2 m reduction in the Group's aftertax profit. Had the acquisition been made on 1 January 2007, it has been calculated that net sales for the Group would have been SEK 107 m higher, corresponding to net sales of SEK 9,362 m. The after-tax profit would have been SEK 910 m, corresponding to an increase of SEK 7 m.

Depreciation/amortisation

Total depreciation and amortisation for the quarter totalled SEK 48 m (54), of which SEK 2 m (2) related to consolidated amortisation of surplus value on intangible assets.

Depreciation and amortisation for the full year amounted to SEK 203 m (209) of which SEK 9 m (9) related to consolidated amortisation of surplus value on intangible assets.

Tax

Tax expenses for the quarter amounted to SEK 86 m (61). The tax rate was 25.8 percent (32.8). Tax expenses for the full year amounted to SEK 274 m (212), corresponding to a tax rate of 23.3 percent (26.6). The main reason for the lower rate of tax is that the loss carry-forwards attributable to the previous year have been activated in the British and German operations. This is against a background of improved profitability and completed analyses.

Commitments and contingent liabilities

During the quarter a property loan has been repaid and a mortgage of SEK 122 m has thereby been released. Following this, remaining commitments amount to SEK 40 m.

The Parent Company

The Parent Company had no net sales during the quarter. The after-tax profit for the period amounted to SEK 893 m (272), which is mainly explained by Group contributions and dividends from subsidiaries. For the full year, the corresponding figures were SEK 842 m (241). Assets amounted to SEK 3,467 m and equity totalled SEK 2,034 m. During the year, a dividend was made to shareholders for the operating year 2006, which reduced equity by SEK 256 m.

Noteworthy risks and uncertainties

Lindab stated in its Annual Report for the operating year 2006 (note 3 pp 57-60) the general risks that exist or can be considered to exist for the parent company and the Group. During the period, no circumstances have emerged that lead to a changed assessment of the indicated risks. This assessment also applies to those disputes described in the aforementioned note as ongoing.

Proposed dividend to shareholders

As a result of Lindab's strong results, cash flow and positive future outlook, Lindab's Board proposes that the AGM on 7 May 2008 decides on a dividend of SEK 5.25 per share. This means a total dividend of SEK 413 m, which is a 62 % increase compared with 2007. 12 May is the proposed record date for the right to receive the dividend, which means that the dividend payment is expected to be made to shareholders on 15 May 2008. The dividend proposal is in line with the dividend policy decided by the Board previously. The proposed dividend corresponds to 46 percent of net profit.

Buy-back of own shares

It is the Board's intention to propose to the AGM to decide on giving Lindab's Board a mandate to buy back its own shares up to a maximum amount of SEK 400 m, however

the Company's maximum holding of its own shares may only amount to one tenth of the total number of shares in the Company. The buy-back shall be used to adjust the Company's capital structure. The repurchased shares shall be used to finance possible acquisitions and used in connection with delivery of shares in exchange for issued options within the framework of a possible incentive programme, or the shares shall be cancelled.

Annual General Meeting

The Board has decided that the AGM will be held at Lindab Ventilation in Grevie on 7 May 2008 at 2 p.m. Notice to attend the AGM will be sent out in due course.

Events subsequent to the reporting date

On 18 January, Lindab acquired the Finnish roof and wall cladding company, Koto Pelti Oy. The company has net sales of SEK 30 m and provides local production for the Building Components division, within the Profile Business Area, and a platform for developing sales to the Finnish market.

Market outlook for 2008

The estimate for 2008 from the independent analysis organisation, Euroconstruct, shows continued good growth. With consideration to Lindab's geographical mix and with emphasis on sales within non-residential construction, the market is estimated to grow by 5 percent which can be compared with just under 7 percent during 2007. Lindab's organic growth for the corresponding period amounted to 14 percent. During 2008, the CEE/CIS markets are estimated to continue to show the strongest market growth.

Lindab on the stock exchange

Lindab intends to examine the possibility of implementing an incentive programme. The offer to acquire options is aimed at holders of key positions within the Lindab Group.

Since 1 December 2006 Lindab has been listed on the Stockholm Stock Exchange under the ticker symbol "LIAB". Since 1 July, Lindab's shares have moved from the "Mid Cap" to the "Large Cap" list for large companies. Companies with a market capitalisation exceeding € 1000 m are listed under the

"Large Cap". Lindab's market capitalisation at 31 December amounted to SEK 11,590 m. The initial offer price on flotation was SEK 110 per share and the share price at the close of the final day's trading on 28 December was SEK 147.25. The highest price paid for Lindab shares during the period January-December was SEK 205, and the lowest was SEK 125. The average daily trading volume of Lindab shares was 197,000 shares per day during 2007.

Accounting policies

The Group applies International Financial Reporting Standards (IFRS). This interim report has been prepared for the Group in accordance with IAS 34, Interim Financial Reporting. The Group has applied the same accounting principles this year as during the previous year.

Unless otherwise specified in this Interim Report, all statements refer to the Group. Figures in parentheses indicate the outcome for the corresponding period in the previous year.

Definitions

  • 1) The operating profit (EBITDA) comprises results before planned depreciation and before consolidated amortisation of surplus value on intangible assets.
  • 2) The operating profit (EBITA) comprises results after planned depreciation, but before consolidated amortisation of surplus value on intangible assets.
  • 3) The operating profit (EBIT) comprises results before financial items and tax.
  • 4) The operating margin (EBITA) has been calculated as operating profit (EBITA) as a percentage of net sales during the period.
  • 5) The operating margin (EBIT) has been calculated as operating profit (EBIT) expressed as a percentage of sales during the period.
  • 6) Calculation of the dilution from warrants issued by the Company up to 14 November 2006 in accordance with IAS 33.
  • 7) Profit for the period in relation to the undiluted average number of outstanding shares.
  • 8) Profit for the period in relation to the diluted average number of outstanding shares.
  • 9) The net debt consists of interest bearing liabilities and assets, as well as cash and bank.

  • 10) The net debt/equity ratio is expressed as the net debt in relation to shareholders' equity

  • 11) Shareholders' equity in relation to the undiluted number of shares at the end of the period.
  • 12) Shareholders' equity in relation to the diluted number of shares at the end of the period.
  • 13) The equity ratio has been calculated as shareholders' equity as a percentage of total assets according to the balance sheet.
  • 14) Profit/loss after net financial items plus financial expenses in relation to financial costs
  • 15) Profit/loss for the period i.e. after-tax profit/loss as a percentage of the weighted average shareholders' equity, excluding minority interests.
  • 16) Profit loss after net financial items plus financial expenses as a percentage of average capital employed. Capital employed refers to total assets less non-interest-bearing provisions and liabilities.
  • 17) Operating profit (EBIT) as a percentage of average operating capital. Operating capital refers to the total net debt and shareholders' equity.

Lindab Group

Net sales per market

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
SEK m 2007 2006 2007 2006
Nordic region 1 015 902 3 680 3 222
Western Europe 652 516 2 637 1 854
CEE/CIS 739 655 2 616 2 139
Other markets 79 79 347 394
Total 2 485 2 152 9 280 7 609

Operating profit by Business Area (EBIT)

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
SEK m 2007 2006 2007 2006
Ventilation 107 93 485 354
Profile 265 195 886 632
Other activities –2 –6 –62 –53
One-off items - –66 - –39
Total 370 216 1 309 894

*From 1 October 2007, changes in the intra-group profit reserve have been distributed to each of the Business Areas. This was previously shown under other activities. The comparative figures for 2006 have been recalculated.

Key figures

SEK (millions) unless otherwise indicated Jan-Dec
2007
Jan-Dec
2006
Operating profit, (EBITDA) 1) 1 512 1 103
Operating profit, (EBITA) 2) 1 318 903
Operating profit, (EBIT)3) 1 309 894
Operating margin (EBITA), % 4) 14.2 11.9
Operating margin (EBIT), % 5) 14.1 11.7
Undiluted average number of shares 78 707 820 90 701 895
Diluted average number of shares 6) 78 707 820 93 061 875
Undiluted number of shares 78 707 820 78 707 820
Diluted number of shares 78 707 820 78 707 820
Undiluted earnings per share, SEK 7) 11.45 6.45
Diluted earnings per share, SEK 8) 11.45 6.29
Cash flow from operating activities 875 778
Net debt 9) 2 238 2 602
Net debt/equity ratio, times 10) 0.75 1.19
Equity 2 969 2 190
Undiluted equity per share, SEK 11) 37.72 27.82
Diluted equity per share, SEK 12) 37.72 27.82
Equity/assets ratio, % 13) 38.6 30.9
Interest coverage ratio, times 14) 8.63 8.38
Return on equity, % 15) 36.49 26.81
Return on capital employed, % 16) 25.09 18.19
Return on operating capital, % 17) 25.14 18.84
Number of employees at close of period 5 112 4 942
Definitions 1-17, see page 4

When calculating the number of shares for last year, the 15 for 1 stock split decided on 13 October 2006 at the Extraordinary General meeting was taken into account.

Net sales per market

Rolling 12 months, SEK m

Operating profit (EBIT)

Rolling 12 months, SEK m

Cash flow, from operating activities, SEK m

Ventilation business area

  • • Net sales during the quarter amounted to SEK 1,144 m (1,006), an increase of 14 percent, 5 percent for comparable units
  • • The operating profit (EBIT), excluding one-off items, improved by 15 percent and amounted to SEK 107 m (93)
  • • The launch of the new Lindab Safe Click duct system continues according to plan

Net sales per market Rolling 12 months, SEK m

Sales and market

Net sales during the fourth quarter rose by 14 percent to SEK 1,144 m (1,006). Adjusted for completed acquisitions, net sales rose by 5 percent. Currency effects during the period have marginally affected net sales.

The launch of Lindab Safe Click continued with a positive reception. During the first half of 2008, an extended range will also be introduced. The Comfort division reinforced its competitive strength through the introduction of an improved product programme.

During the full year net sales amounted to SEK 4,507m (3,568), which is an increase of 26 percent. Adjusted for acquisitions and currency, the increase amounted to 10 percent. Currency fluctuations reduced sales by 1 percentage point.

Profit

The operating profit (EBIT) for the fourth quarter, excluding one-off items rose to SEK 107 m, which is an increase of 15 percent compared with the previous year.

The acquisitions of CCL in the UK and of Airbat in France have continued to have a positive effect on the operating profit. During the third quarter there was some disruption to production due to the changeover of production to Lindab Safe Click and focus on core products, this has gradually diminished during the fourth quarter.

For the full year 2007, the operating profit (EBIT) amounted to SEK 485 m, which is an increase of 37 percent.

Key figures Ventilation

Oct-Dec
2007
Oct-Dec
2006
Jan-Dec
2007
Jan-Dec
2006
Net sales, SEK m 1 144 1 006 4 507 3 568
Operating profit (EBIT), SEK m 107 93 485 1) 354
Operating margin (EBIT), % 9.4 9.2 10.8 9.9
Number of employees 2 889 2 771

1) ) Excluding restructuring costs of SEK 41 million

Net sales per quarter, SEK m

Share of net sales by product area

Profile business area

  • • Net sales during the quarter amounted to SEK 1,324 m (1,139), an increase of 16 percent. When adjusted for currency effects net sales increased by 14 percent
  • • Operating profit (EBIT) rose by 36 percent to SEK 265 m (195)
  • • Positive reception of the new RdBX partition wall stud with click function

Sales and market

Net sales for the fourth quarter rose by 16 percent to SEK 1,324 m. Currency fluctuations increased net sales by 2 percentage points. The Building Systems division showed a strong growth in volumes. The Building Components division had slightly weaker growth in sales.

The newly unveiled RdBX partition wall stud has had a very positive reception when previewed by a number of key players in the market. The launch will take place during the first quarter of 2008, starting in Scandinavia. The launch in the CEE/CIS markets will take place during the second half of the year.

The construction of Building Systems' factory in Russia is going to plan and production is expected to start at the end of 2008.

Net sales for the full year increased to SEK 4,712 m (3,979), an increase of 18 percent. Currency effects increased net sales by 1 percentage point.

Profit

The operating profit (EBIT) for the period amounted to SEK 265 m (195). The operating margin improved by 2.9 percentage points to 20 percent. The volume increase has been made with good cost control. The quarter was very strong for the Building Systems division with good volume growth in all regions.

The operating profit (EBIT) for 2007 improved by 40 percent to SEK 886 m (632).

Key figures Profile

Oct-Dec
2007
Oct-Dec
2006
Jan-Dec
2007
Jan-Dec
2006
Net sales, SEK m 1 324 1 139 4 712 3 979
Operating profit (EBIT), SEK m 265 195 886 632
Operating margin (EBIT), % 20.0 17.1 18.8 15.9
Number of employees 2 062 2 013

Net sales per market Rolling 12 months, SEK m

Net sales per quarter, SEK m

Share of net sales by product area

Consolidated Income Statement

Group Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Amounts in SEK m 2007 2006 2007 2006
Net sales 2 485 2 152 9 280 7 609
Cost of goods sold –1 694 –1 462 –6 382 –5 251
Gross profit 791 690 2 898 2 358
Other operating income 23 25 79 77
Selling expenses –265 –249 –988 –857
Administration expenses –140 –162 –549 –525
R & D costs –12 –11 –47 –43
Other operating expenses –27 –77 –84 –116
Operating profit 370 216 1 309 894
Interest income 7 4 20 11
Interest expenses –40 –34 –149 –107
Other financial income and expenses –4 0 –5 –1
Profit after financial items 333 186 1 175 797
Tax on profit for the period –86 –61 –274 –212
Profit for the period 247 125 901 585
Attributable to
Parent company shareholders 247 125 901 585
Profit for the period 247 125 901 585
Undiluted earnings per share, SEK 3.14 1.61 11.45 6.45
Diluted earnings per share, SEK 3.14 1.59 11.45 6.29
Undiluted average number of shares 78 707 820 77 527 830 78 707 820 90 701 895
Diluted average number of shares 78 707 820 78 707 820 78 707 820 93 061 875
Undiluted number of shares 78 707 820 78 707 820 78 707 820 78 707 820
Diluted number of shares 78 707 820 78 707 820 78 707 820 78 707 820

When calculating the number of shares for last year, the 15 for 1 stock split decided on 13 October 2006 at the Extraordinary General meeting was taken into account.

Sales and growth 2007
Oct-Dec Jan-Dec
Net sales, SEK m 2 485 9 280
Change, SEK m 333 1 671
Change, % 15.5 22.0
Of which
Volumes and prices, % 10.1 14.0
Acquisitions/divestments, % 4.2 7.9
Currency effects, % 1.2 0.1

Consolidated Balance Sheet

Group 31 December 31 December
Amounts in SEK m 2007 2006
Assets
Goodwill 2 713 2 621
Other intangible fixed assets 66 74
Tangible fixed assets 1 425 1 391
Financial fixed assets 7 9
Financial fixed assets, interest bearing 6 6
Other long-term receivables 346 306
Total fixed assets 4 563 4 407
Stock 1 278 1 083
Other receivables 1 478 1 392
Other receivables, interest bearing 10 1
Cash and bank 371 199
Total current assets 3 137 2 675
TOTAL ASSETS 7 700 7 082
Shareholders' equity and liabilities
Shareholders' equity 2 969 2 190
Long-term liabilities
Interest-bearing provisions 109 106
Interest-bearing liabilities 2 398 2 239
Non-interest-bearing provisions 352 357
Non-interest-bearing liabilities 3 8
Total long-term liabilities 2 862 2 710
Current liabilities
Interest-bearing liabilities 118 463
Non-interest-bearing provisions 67 82
Non-interest-bearing liabilities 1 684 1 637
Total current liabilities 1 869 2 182
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 7 700 7 082

Consolidated Cash Flow Statement

Group
Amounts in SEK m
Oct-Dec
2007
Oct-Dec
2006
Jan-Dec
2007
Jan-Dec
2006
Operating activities
Operating profit 370 216 1 309 894
Reversal of depreciation/amortisation 48 53 203 209
Provisions, not affecting cash flow –3 56 –25 54
Adjustment for other items not affecting cash flow 10 7 20 –18
Total 425 332 1 507 1 139
Interest received 8 2 21 10
Interest paid –47 –54 –148 –125
Tax paid –1 –74 –288 –141
Cash flow from operating activities before change in
working capital 385 206 1 092 883
Change in working capital
Stock (increase – /decrease +) 212 –23 –161 –170
Operating receivables (increase – /decrease +) 346 182 –24 –154
Operating liabilities (increase + /decrease –) –368 –98 –32 220
Total change in working capital 190 61 –217 –104
Cash flow from operating activities 575 267 875 778
Investing activities
Acquisition of Group companies –41 –311 –48 –384
Divestment of Group companies - - - 10
Investments in intangible fixed assets –10 –17 –13 –15
Investments in tangible fixed assets –67 –46 –182 –131
Change in financial fixed assets –1 19 1 12
Sale/disposal of intangible fixed assets 0 - 0 -
Sale/disposal of tangible fixed assets 1 7 17 84
Cash flow from investing activities –118 –348 –225 –424
Financing activities
Increase +/decrease – in borrowing –344 –22 –231 707
Exercised options - - - 91
Redemption of shares - - - – 1 196
Issue of new shares - - - 0
Dividend - - –256 -
Option premiums - - 3
Cash flow from financing activities –344 –22 –487 –395
Cash flow for the period 113 –103 163 –41
Cash and cash equivalents at start of the period 251 302 199 244
Effect of exchange rate changes on cash and cash equivalents 7 0 9 –4
Cash and cash equivalents at end of the period 371 199 371 199

Consolidated Equity Capital

Change in Consolidated Equity

Group
Amounts in SEK m Oct-Dec 2007 Oct-Dec 2006 Full year 2007 Full year 2006
Opening balance 2 640 2 001 2 190 2 853
Premium for management options - - - 3
Issue of new shares - - - 0
Redemption of shares - - - –1 196
Exercised options - 91 - 91
Dividend - - –256 -
Translation differences 82 –27 134 –146
Profit for the period 247 125 901 585
Closing balance 2 969 2 190 2 969 2 190

Dividend to shareholders for 2006 activity

The Annual General Meeting on 25 April 2007 voted to make a dividend payment to shareholders. The dividend payment amounted to SEK 3.25 per share, totalling SEK 255,800,415, the remaining SEK 405,786,585 was to be carried forward.

Outstanding shares

The share capital on 30 September 2007 was SEK 78,707,820 split between 78,707,820 class A shares only. All shares have a face value of SEK 1.00 each.

Options

There are no outstanding options.

Parent Company

Income Statement

Parent Company
Amounts in SEK m Oct-Dec 2007 Oct-Dec 2006 Jan-Dec 2007 Jan-Dec 2006
Other operating income 1 - 4 -
Administration expenses –6 –27 –18 –28
Other operating expenses - - - -
Operating profit –5 –27 –14 –28
Profit from subsidiaries 1 003 425 1 003 425
Interest income, external 1 0 1 0
Interest expenses, external –11 –10 –39 –29
Interest expenses, internal –18 –10 –52 –33
Profit after financial items 970 378 899 335
Tax on profit for the period –77 –106 –57 –94
Profit for the period 893 272 842 241

Change in Parent Company Equity

Parent Company
Amounts in SEK m Oct-Dec 2007 Oct-Dec 2006 full year 2007 full year 2006
Opening balance 1 141 1 085 1 448 2 309
Premium for management options - - - 3
Issue of new shares - - - 0
Redemption of shares - - - –1 196
Exercised options - 91 - 91
Dividend - - –256 -
Profit for the period 893 272 842 241
Closing balance 2 034 1 448 2 034 1 448

Balance Sheet

Parent Company 31 December 31 December
Amounts in SEK m 2007 2006
Assets
Shares in Group companies 3 467 3 467
Total fixed assets 3 467 3 467
Other receivables 0 14
Cash and bank 0 0
Total current assets 0 14
TOTAL ASSETS 3 467 3 481
Shareholders' equity and liabilities
Shareholders' equity 2 034 1 448
Long-term liabilities
Interest-bearing liabilities - 792
Liabilities to Group companies 1 365 909
Total long-term liabilities 1 365 1 701
Current liabilities
Interest-bearing liabilities - 203
Non-interest-bearing liabilities 68 129
Total current liabilities 68 332
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 3 467 3 481

The Interim Report has been delivered by the Company's CEO Kjell Åkesson following authorization by the Board.

Båstad, Sweden 12 februari 2008

Kjell Åkesson CEO and President

Review statement

Introduction

We have conducted a review of the report that has been delivered by Lindab International AB for the year-end to 31 December 2007. The Board of Directors and the CEO are responsible for the preparation and presentation of this year-end report in accordance with IAS 34 and the Swedish Annual Accounts Act. It is our duty to express an opinion about this year-end report based upon our review.

The focus and scope of the review

We have conducted our review in accordance with the Standard for Review Engagements (SÖG) 2410 - Review of Interim Financial Information conducted by the Company's appointed independent Auditor. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical checks and other review procedures. A review has a different focus and a much narrower scope than an audit conducted in accordance with the Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to be absolutely certain that we are aware of all significant matters that might have been identified if an audit had been carried out. The conclusion that is expressed in a review does therefore not provide the same level of assurance as a conclusion that is based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that this year-end report has not, in all material respects, been prepared in accordance with IAS 34, and for the Parent Company, in accordance with the Annual Accounts Act.

Båstad, Sweden 12 februari 2008

Ingvar Ganestam Authorised Accountant

Staffan Landén Authorised Accountant

Lindab simplifies construction

This is Lindab

Lindab develops, manufactures, markets and distributes products and system solutions in sheet metal for simplified construction and improved indoor climate.

The Company is divided into two business areas, Ventilation and Profile, and its products can be distinguished by their high quality, ease of assembly, energy and environmentally-friendly design and are delivered with high levels of service. Altogether, this increases the value for customers.

The Group had net sales of SEK 9,280 m in 2007, is established in 30 countries and has approximately 5,000 employees.

The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of

sales. During 2007, the Nordic market accounted for 40 percent, the growth market Central and Eastern Europe for 28 percent, Western Europe for 28 percent and other markets for 4 percent of total sales.

The Ventilation Business Area focuses on the ventilation sector with components and system solutions. It conducts operations within two divisions, Air Duct Systems and Comfort.

The Profile Business Area operates in the construction sector with building systems and building components. It conducts operations within two divisions, Building Systems and Building Components.

The Lindab share is listed on the Stockholm Stock Exchange Nordic List, Large Cap, under the ticker symbol LIAB. The principal shareholders are Ratos, Sjätte AP-fonden and Skandia Liv.

Pre-engineered building systems Building components Duct systems for ventilation Products for improved indoor climate

Building Systems

The Building Systems division specialises in pre-engineered systems for the construction of steel buildings. These are marketed and sold by associated building contractors.

Building Components

The Building Components division comprises a highly advanced system of components for roof drainage, roof and wall cladding as well as for wall construction.

Duct Systems

The Air Duct Systems division focuses on complete duct systems for ventilation.

Indoor Climate Products

The Comfort division comprises components that help to distribute and treat ventilating air to create better indoor climates.

Financial reporting dates 2008

Annual Report March/April 2008 Annual General Meeting (AGM) 7 May 2008 Interim Report January-March, Q1 7 May 2008 Interim Report January-June, Q2 17 July 2008 Interim Report January-September, Q3 29 October 2008

The AGM will be held at Lindab Ventilation in Grevie on 7 May at 14.00.

For further information please contact:

Kjell Åkesson, CEO Nils-Johan Andersson, CFO Phone +46 (0) 431-850 00 Phone +46 (0) 431-850 00

e-mail [email protected] e-mail [email protected]

For additional information please visit www.lindab.com

Subscribe to our customer magazine (Lindab Direct), press releases, annual and interim reports.

The information here is that which Lindab International AB is required to disclose under the Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was released to the media for publication on 12 February 2008 at 07:30 (CET).

Lindab International AB 269 82 Båstad Visiting address: Järnvägsgatan 41, Grevie Corporate ID no. 556606-5446 Tel: +46 (0) 431 850 00 Fax +46 (0) 431 850 10 e-mail [email protected] www.lindab.com

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