Earnings Release • Feb 13, 2019
Earnings Release
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In general, Beijer Alma's operations in the Nordic region, Europe, USA and Asia continued to experience strong demand with the exception of Germany and China, where a slowdown was noted. Cost adjustments are therefore being made in the relevant units.
Order bookings increased 3 percent during the quarter, net revenues 7 percent and earnings just over 2 percent. Order bookings from industrial customers in the Nordic region, which impact all of our subsidiaries, were strong. The defense industry performed particularly well during the quarter. Cash flow declined as a result of a high rate of investment intended to boost the capacity for expansion throughout the Group.
Overall, demand was more varied than usual during the fourth quarter. In total, the full year 2018 marked a period of profitable growth for Beijer Alma. Profit before tax increased 18 percent to MSEK 609 (517).
Within Lesjöfors, the trend in Industrial Springs remained strong and invoicing grew 8 percent. Excluding the specific effect of the automotive industry in Germany, growth amounted to 14 percent. On a positive note, a large share of new sales was reported in certain countries, including China and the UK. For Chassis Springs, the fourth quarter is a low period.
Within Habia, order bookings remained strong in Other Industry, while Telecom experienced a calmer quarter, as expected. The preparations for and start-up of offshore cable production was a key focus at the plant in Söderfors.
Within Beijer Tech, Fluid Technology displayed particularly favorable growth, partly due to the manufacturing units Svebab and Packningar & Plast.
In December, the Group announced the acquisition of Uudenmaan Murskaus, a small business that will provide an excellent complement to Beijer Tech's Finnish operations. Takeover occurred in January.
Henrik Perbeck, President and CEO
| 2018 | 2017 | 2018 | 2017 | ||
|---|---|---|---|---|---|
| Q4 | Q4 | Change, % | Full-year | Full-year | |
| Net revenues, MSEK | 1,042.9 | 968.4 | 7.7 | 4,408.8 | 3,971.5 |
| Operating profit, MSEK | 128.8 | 124.9 | 3.1 | 622.8 | 528.4 |
| Operating margin, % | 12.4 | 12.9 | – | 14.1 | 13.3 |
| Profit after net financial items, MSEK | 125.8 | 123.0 | 2.3 | 609.2 | 517.4 |
| Earnings per share, SEK | 1.72 | 1.53 | 12.4 | 7.78 | 6.45 |
| Cash flow after capital expenditures, MSEK | 55.4 | 105.8 | -47.6 | 229.3 | 186.5 |
| Net revenues per segment (subsidiary), MSEK | |||||
| Lesjöfors | 582.7 | 550.8 | 5.8 | 2,624.9 | 2,351.2 |
| Habia Cable | 209.8 | 184.6 | 13.7 | 870.4 | 808.5 |
| Beijer Tech | 250.3 | 232.9 | 7.5 | 913.1 | 811.5 |
| Parent Company and intra-Group | 0.1 | 0.1 | – | 0.4 | 0.3 |
| Total Group | 1,042.9 | 968.4 | 7.7 | 4,408.8 | 3,971.5 |
| Operating profit per segment (subsidiary), MSEK | |||||
| Lesjöfors | 105.3 | 103.0 | 2.2 | 530.6 | 477.4 |
| Habia Cable | 8.7 | 6.7 | 29.9 | 57.3 | 42.2 |
| Beijer Tech | 18.2 | 16.2 | 12.3 | 60.5 | 47.2 |
| Parent Company and intra-Group | -3.4 | -1.0 | 240.0 | -25.6 | -38.4 |
| Total Group | 128.8 | 124.9 | – | 622.8 | 528.4 |
| Net financial items | -3.0 | -1.9 | – | -13.6 | -11.0 |
| Profit before tax | 125.8 | 123.0 | 2.3 | 609.2 | 517.4 |
The industrial economy remained strong. However, sales to the German automotive industry were weak during the quarter. This was primarily due to delivery problems in the German automotive industry as a result of new certification requirements. Demand from other customer groups that are dependent on the general economic trend remained favorable across most geographic regions.
Order bookings during the quarter amounted to MSEK 1,036 (1,007), up 3 percent. Excluding corporate acquisitions and fluctuations in exchange rates, order bookings were unchanged. Invoicing increased 8 percent to MSEK 1,043 (968). Excluding corporate acquisitions and fluctuations in exchange rates, the increase was 3 percent. All of the subsidiaries increased their order bookings and invoicing. This increase was far-reaching and included most industries and geographic markets. One exception was the German automotive industry.
Operating profit totaled MSEK 129 (125) and profit after net financial items amounted to MSEK 126 (123). Earnings per share totaled SEK 1.72 (1.53). Cash flow after capital expenditures amounted to MSEK 55 (68).
Order bookings for the full year totaled MSEK 4,615 (4,031), up 14 percent. Excluding corporate acquisitions and fluctuations in exchange rates, the increase was 11 percent. Invoicing rose 11 percent to MSEK 4,409 (3,971). Excluding corporate acquisitions and fluctuations in exchange rates, the increase was 7 percent.
Operating profit for 2018 totaled MSEK 623 (528) and profit after net financial items amounted to MSEK 609 (517). Signed forward agreements and fluctuations in exchange rates had a positive net impact of approximately MSEK 13 on earnings, most of which was attributable to Lesjöfors. Earnings per share totaled SEK 7.78 (6.45). Cash flow after capital expenditures amounted to MSEK 229 (186). Cash flow for the year was charged with corporate acquisition payments of MSEK 4 (84).
Lesjöfors is a full-range supplier of standard and specially produced industrial springs as well as wire and flat strip components. The company is a dominant player in the Nordic region and one of the largest companies in its industry in Europe. Lesjöfors has manufacturing operations in Sweden, Denmark, Finland, Germany, Latvia, the UK, Slovakia, the US, Mexico, Singapore, Thailand and China.
Lesjöfors conducts its operations in two areas: Industry and Chassis Springs. Industry experienced high demand and favorable growth in most customer groups and geographic markets, excluding the German automotive industry. Chassis Springs is currently in its low season and deliveries were in line with the year-earlier period. Overall, order bookings for Lesjöfors amounted to MSEK 581 (579). Invoicing totaled MSEK 583 (551), up 6 percent. Operating profit amounted to MSEK 105 (103).
Industry continued to experience a strong economic trend and demand from most of customer groups and geographic markets was favorable. Invoicing increased 8 percent to MSEK 460 (426). In the markets outside Germany, invoicing rose 14 percent during the quarter.
Chassis Springs is seasonal in nature, with low activity during the fourth quarter. Invoicing amounted to MSEK 123 (125).
Order bookings for the full year 2018 amounted to MSEK 2,616 (2,408), up 9 percent. Invoicing rose 12 percent to MSEK 2,625 (2,351). Invoicing amounted to MSEK 1,864 (1,676) in the Industry business area and MSEK 761 (675) in Chassis Springs. Operating profit totaled MSEK 531 (477).
Habia Cable is one of Europe's largest manufacturers of custom-designed cables for customers in the telecom, transport, nuclear power, defense, offshore and other industries. The operations are conducted in the areas of Telecom and Other Industry. The company has manufacturing operations in Sweden, Germany, China and Poland, and conducts sales worldwide.
Order bookings improved 7 percent during the quarter to MSEK 209 (196) and invoicing rose 14 percent to MSEK 210 (185). Telecom reported a relatively weak trend due to the fact that no major projects are currently being rolled out. Invoicing totaled MSEK 58 (63). Other Industry reported a favorable trend, driven by the strong economic climate. Invoicing in Other Industry totaled MSEK 152 (122). Habia's operating profit for the quarter amounted to MSEK 9 (7).
During the full year, order bookings rose 29 percent to MSEK 1,044 (812). One key factor underlying this increase was heating cables for the offshore industry, for which Habia signed orders valued at approximately MSEK 160. Invoicing increased 8 percent to MSEK 874 (809). Invoicing amounted to MSEK 313 (337) in Telecom and MSEK 558 (472) in Other Industry. Habia's operating profit totaled MSEK 57 (42).
Beijer Tech specializes in industrial trading and manufacturing. The company sells consumables, components and machinery to Nordic industrial companies, and represents several of the world's leading manufacturers. The company's operations are conducted in two areas: Industrial Products and Fluid Technology.
While sales volumes in Fluid Technology increased during the quarter, deliveries within Industrial Products were unchanged. Order bookings totaled MSEK 246 (233) for the quarter, up 6 percent. Invoicing increased 7 percent to MSEK 250 (233). Invoicing amounted to MSEK 135 (136) in Industrial Products and MSEK 115 (96) in Fluid Technology. Operating profit totaled MSEK 18 (16).
Order bookings for the full year rose 18 percent to MSEK 955 (811). Invoicing amounted to MSEK 913 (811), up 13 percent. Invoicing amounted to MSEK 498 (452) in Industrial Products and MSEK 415 (359) in Fluid Technology. Operating profit totaled MSEK 60 (47).
The Parent Company, Beijer Alma AB, a holding company that does not conduct its own external invoicing, reported an operating loss of MSEK 3 (loss: 1) for the quarter and a loss of MSEK 26 (loss: 38) for the full year. Net profit, which also includes Group contributions and dividends from subsidiaries, amounted to MSEK 296 (325) for the full year.
Net revenues MSEK 2018 2018 2018 2018 2017 2017 2017 2017 2018 2017 2016 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Full-year Full-year Full-year Lesjöfors 582.7 614.1 738.4 689.7 550.8 527.6 648.0 624.8 2,624.9 2,351.2 2,009.4 Habia Cable 209.8 191.0 242.0 227.6 184.6 168.3 208.1 247.5 870.4 808.5 786.8 Beijer Tech 250.3 210.7 235.5 216.6 232.9 183.8 207.8 187.0 913.1 811.5 731.1 Parent Company and intra-Group 0.1 0.1 0.1 0.1 0.1 – 0.1 0.1 0.4 0.3 0.2 Total 1,042.9 1,015.9 1,216.0 1,134.0 968.4 879.7 1,064.0 1,059.4 4,408.8 3,971.5 3,527.5 Operating profit MSEK 2018 2018 2018 2018 2017 2017 2017 2017 2018 2017 2016 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Full-year Full-year Full-year Lesjöfors 105.3 121.2 163.0 141.1 103.0 102.5 141.7 130.2 530.6 477.4 380.2 Habia Cable 8.7 14.0 20.8 13.8 6.7 4.6 6.4 24.5 57.3 42.2 97.0 Beijer Tech 18.2 16.2 14.0 12.1 16.2 10.3 12.1 8.6 60.5 47.2 7.9 Parent Company and intra-Group -3.4 -3.2 -11.1 -7.9 -1.0 -4.6 -10.0 -22.8 -25.6 -38.4 -29.9 Total operating profit 128.8 148.2 186.7 159.1 124.9 112.8 150.2 140.5 622.8 528.4 455.2 Net financial items -3.0 -2.8 -3.8 -4.0 -1.9 -3.2 -3.2 -2.7 -13.6 -11.0 -8.2 Profit after net financial items 125.8 145.4 182.9 155.1 123.0 109.6 147.0 137.8 609.2 517.4 447.0
No sales are conducted between subsidiaries.
The Board proposes that the Annual General Meeting approve a dividend of SEK 5.10 (4.75) per share.
The Annual General Meeting will be held on Thursday, March 28, 2019 at 6:00 p.m. in the Main Hall (Stora Salen) of the Uppsala Concert and Conference Hall (Uppsala Koncert & Kongress), Vaksala torg 1, Uppsala. The Annual Report will be available at the company's office no later than three weeks prior to the Annual General Meeting and will be sent to shareholders around March 20, 2019.
Corporate acquisitions
Beijer Tech has acquired Packningar och Plast, which supplies gaskets, seals and plastics to Swedish industry. The company conducts manufacturing in Norsborg, Stockholm, and has annual revenues of slightly more than MSEK 20 with favorable profitability.
| Preliminary acquisition calculation | |
|---|---|
| MSEK | |
| Purchase consideration | 17.5 |
| Net assets measured at fair value | 11.3 |
| Goodwill | 6.2 |
MSEK 12.3 of the purchase consideration was paid in cash and MSEK 5.2 will be paid at the end of 2019.
| Net assets measured at fair value comprise: | |||
|---|---|---|---|
| MSEK | |
|---|---|
| Machinery | 0.6 |
| Inventories | 1.5 |
| Receivables | 4.6 |
| Cash funds | 8.7 |
| Current liabilities | -4.1 |
| Total | 11.3 |
The receivables guaranteed by the seller are expected to be transferred at fair value. Takeover occurred in April. Since then the company has contributed MSEK 20 in net revenues and MSEK 3.5 in operating profit. Transaction costs of MSEK 0.3 were expensed.
In January 2019, Beijer Tech conducted a minor acquisition of assets and liabilities by acquiring the assets of the Finnish company Uudenmaan Murskaus. The purchase consideration totaled MSEK 13.
The Group's material risks and uncertainties include business and financial risks. Business risks may include major customer exposures to individual industries or companies. Financial risks primarily pertain to foreign currency risks that arise because more than 95 and 85 percent of sales for Habia and Lesjöfors, respectively, are conducted outside Sweden, while approximately 65 percent of production takes place outside Sweden. Beijer Tech does not have a corresponding foreign currency risk since 71 percent of its sales are conducted in Sweden.
Management of the Group's financial risks is described in Note 31 of the 2018 Annual Report. The Group is deemed to have a favorable risk spread across industries and companies and the assessment is that the risk situation has remained unchanged during the year.
Group
| MSEK | 2018 | 2017 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|
| Q4 | Q4 | Full-year | Full-year | Full-year | |
| Net revenues | 1,042.9 | 968.4 | 4,408.8 | 3,971.5 | 3,527.5 |
| Cost of goods sold | -719.6 | -654.7 | -3,032.4 | -2,706.9 | -2,381.7 |
| Gross profit | 323.3 | 313.7 | 1,376.4 | 1,264.6 | 1,145.8 |
| Selling expenses | -106.5 | -96.5 | -408.5 | -376.1 | -368.7 |
| Administrative expenses | -89.2 | -96.0 | -346.3 | -347.7 | -324.3 |
| Items affecting comparability | – | – | – | -16.1 | – |
| Other income | – | 2.9 | – | 2.9 | – |
| Profit from participations in associated companies | 1.2 | 0.8 | 1.2 | 0.8 | 2.4 |
| Operating profit | 128.8 | 124.9 | 622.8 | 528.4 | 455.2 |
| Interest income | 0.6 | 1.2 | 2.1 | 1.5 | 1.2 |
| Interest expenses | -3.6 | -3.1 | -15.7 | -12.5 | -9.4 |
| Profit after net financial items | 125.8 | 123.0 | 609.2 | 517.4 | 447.0 |
| Tax on profit for the period | -22.0 | -30.5 | -140.4 | -129.1 | -119.4 |
| Net profit attributable to Parent Company shareholders | 103.8 | 92.5 | 468.8 | 388.3 | 327.6 |
| Other comprehensive income | |||||
| Items that may be reclassified to profit or loss | |||||
| Cash-flow hedges | 5.6 | -4.5 | 7.7 | -5.6 | -5.7 |
| Translation differences | 12.3 | 20.7 | 44.8 | -6.9 | 30.6 |
| Total other comprehensive income after tax | 17.9 | 16.2 | 52.5 | -12.5 | 24.9 |
| Total comprehensive income attributable to Parent Company | |||||
| shareholders | 121.7 | 108.7 | 521.3 | 375.8 | 352.5 |
| Other comprehensive income pertains in its entirety to items that may be reclassified to profit or loss. |
|||||
| Net earnings per share | |||||
| before and after dilution, SEK | 1.72 | 1.53 | 7.78 | 6.45 | 5.43 |
| Dividend per share, SEK | – | – | 5.101) | 4.75 | 4.75 |
| Includes amortization and depreciation in the amount of, MSEK | 35.2 | 34.9 | 138.5 | 130.5 | 117.3 |
| Parent Company | |||||
| MSEK | 2018 | 2017 | 2018 | 2017 | 2016 |
| Q4 | Q4 | Full-year | Full-year | Full-year | |
| Administrative expenses | -7.2 | -8.5 | -43.8 | -43.4 | -48.0 |
| Items affecting comparability | – | – | – | -16.1 | – |
| Other operating income | 4.5 | 7.4 | 18.2 | 21.1 | 18.2 |
| Operating loss | -2.7 | -1.1 | -25.6 | -38.4 | -29.8 |
| Group contributions | 58.1 | 60.1 | 58.1 | 60.1 | 52.1 |
| Income from participations in Group companies | 272.0 | 309.0 | 272.0 | 309.0 | 260.0 |
| Interest income and similar revenues | 0.2 | 0.2 | 0.6 | 0.8 | 0.7 |
| Interest expenses and similar expenses | -0.3 | -0.3 | -1.1 | -1.1 | -0.7 |
| Profit after net financial items | 327.3 | 367.9 | 304.0 | 330.4 | 282.3 |
| Tax on profit for the period | -12.1 | -12.6 | -7.6 | -4.9 | -5.8 |
| Net profit | 315.2 | 355.3 | 296.4 | 325.5 | 276.5 |
No items are attributable to other comprehensive income.
1) Proposed dividend by the Board.
| Group | |||
|---|---|---|---|
| MSEK | 2018 | 2017 | 2016 |
| Dec 31 | Dec 31 | Dec 31 | |
| Assets | |||
| Fixed assets | |||
| Intangible assets | 628.2 | 607.4 | 550.6 |
| Tangible assets | 987.9 | 892.0 | 904.8 |
| Deferred tax assets | 27.7 | 15.8 | 19.1 |
| Financial assets | 33.0 | 36.3 | 30.3 |
| Total fixed assets | 1,676.8 | 1,551.5 | 1,504.8 |
| Current assets | |||
| Inventories | 951.7 | 824.6 | 717.9 |
| Receivables | 808.9 | 731.1 | 654.9 |
| Cash and bank balances | 291.3 | 328.1 | 273.6 |
| Total current assets | 2,051.9 | 1,883.8 | 1,646.4 |
| Total assets | 3,728.7 | 3,435.3 | 3,151.2 |
| 2018 | 2017 | 2016 | |
| Dec 31 | Dec 31 | Dec 31 | |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | |||
| Share capital | 125.5 | 125.5 | 125.5 |
| Other contributed capital | 444.4 | 444.4 | 444.4 |
| Reserves | 90.5 | 38.1 | 50.6 |
| Retained earnings, including net profit for the period | 1,571.4 | 1,383.1 | 1,281.0 |
| Shareholders' equity attributable to Parent Company shareholders | 2,231.8 | 1,991.1 | 1,901.5 |
| Non-controlling interests | 4.1 | 3.9 | 3.8 |
| Total shareholders' equity | 2,235.9 | 1,995.0 | 1,905.3 |
| Non-current liabilities to credit institutions | 189.8 | 144.7 | 242.8 |
| Other non-current liabilities | 80.6 | 75.0 | 66.2 |
| Current liabilities to credit institutions | 541.1 | 592.1 | 343.9 |
| Current non-interest-bearing liabilities | 681.3 | 628.5 | 593.0 |
| Total liabilities | 1,492.8 | 1,440.3 | 1,245.9 |
| Total shareholders' equity and liabilities | 3,728.7 | 3,435.3 | 3,151.2 |
| MSEK | 2018 | 2017 | 2016 |
|---|---|---|---|
| Dec 31 | Dec 31 | Dec 31 | |
| Assets | |||
| Fixed assets | |||
| Tangible assets | 1.1 | 1.2 | 1.2 |
| Deferred tax assets | 5.9 | 5.7 | – |
| Participations in Group companies | 532.0 | 532.0 | 532.2 |
| Total fixed assets | 539.0 | 538.9 | 533.4 |
| Current assets | |||
| Receivables | 439.9 | 440.2 | 362.8 |
| Cash and cash equivalents | 58.2 | 59.7 | 3.1 |
| Total current assets | 498.1 | 499.9 | 365.9 |
| Total assets | 1,037.1 | 1,038.8 | 899.3 |
| MSEK | 2018 | 2017 | 2016 |
| Dec 31 | Dec 31 | Dec 31 | |
| Shareholders' equity and liabilities | |||
| Share capital | 125.5 | 125.5 | 125.5 |
| Statutory reserve | 444.4 | 444.4 | 444.4 |
| Retained earnings | 48.1 | 8.8 | 12.8 |
| Net profit for the period | 296.4 | 325.5 | 276.5 |
| Total shareholders' equity | 914.4 | 904.2 | 859.2 |
| Current liabilities to credit institutions | 100.3 | 100.3 | 14.7 |
| Current non-interest-bearing liabilities | 22.4 | 34.3 | 25.4 |
| Total shareholders' equity and liabilities | 1,037.1 | 1,038.8 | 899.3 |
| Group | |||||
|---|---|---|---|---|---|
| MSEK | 2018 | 2017 | 2018 | 2017 | 2016 |
| Q4 | Q4 | Full-year | Full-year | Full-year | |
| Cash flow from operating activities before change in working capital and capital expenditures |
136.0 | 128.9 | 612.6 | 520.2 | 436.5 |
| Change in working capital, increase (–) decrease (+) | 32.4 | -23.1 | -155.3 | -132.1 | 28.5 |
| Cash flow from operating activities | 168.4 | 105.8 | 457.3 | 388.1 | 465.0 |
| Investing activities | -112.5 | -37.5 | -224.4 | -118.0 | -213.3 |
| Acquired companies less cash and cash equivalents | -0.5 | – | -3.6 | -83.6 | -78.1 |
| Cash flow after capital expenditures | 55.4 | 68.3 | 229.3 | 186.5 | 173.6 |
| Financing activities | -122.3 | 8.9 | -274.4 | -130.1 | -157.4 |
| Change in cash and cash equivalents | -66.9 | 77.2 | -45.1 | 56.4 | 16.2 |
| Cash and cash equivalents at beginning of period | 351.9 | 252.6 | 328.1 | 273.6 | 252.2 |
| Exchange-rate fluctuations in cash and cash equivalents | 6.3 | -1.7 | 8.3 | -1.9 | 5.2 |
| Cash and cash equivalents at end of period | 291.3 | 328.1 | 291.3 | 328.1 | 273.6 |
| Approved but not utilized committed credit facilities | 565.9 | 566.2 | 565.9 | 566.2 | 694.3 |
| Available liquidity | 857.2 | 894.3 | 857.2 | 894.3 | 967.9 |
| MSEK | 2018 | 2017 | 2016 |
|---|---|---|---|
| Full-year | Full-year | Full-year | |
| Opening shareholders' equity attributable to Parent Company shareholders | 1,996.7 | 1,907.1 | 1,840.9 |
| Comprehensive income for the period | 521.3 | 375.8 | 352.4 |
| Dividend paid | -286.2 | -286.2 | -286.2 |
| Closing shareholders' equity attributable to Parent Company shareholders | 2,231.8 | 1,996.7 | 1,907.1 |
| Non-controlling interests | 4.1 | 3.9 | 3.8 |
| Total closing shareholders' equity | 2,235.9 | 2,000.6 | 1,910.9 |
| MSEK | Share capital |
Other contributed capital | Reserves | Retained earnings, including net profit for the period |
Total |
|---|---|---|---|---|---|
| Dec 31, 2017 Dividend paid Comprehensive income |
125.5 | 444.4 | 38.1 | 1,388.7 -286.2 |
1,996.7 -286.2 |
| for the period | 52.4 | 468.9 | 521.3 | ||
| Dec 31, 2018 | 125.5 | 444.4 | 90.5 | 1,571.4 | 2,231.8 |
| Number of shares | |||
|---|---|---|---|
| 2018 | 2017 | 2016 | |
| Dec 31 | Dec 31 | Dec 31 | |
| Number of shares outstanding | 60,262,200 | 30,131,100 | 30,131,100 |
| Total number of shares, after full dilution | 60,262,200 | 30,131,100 | 30,131,100 |
| Average number of shares, after full dilution | 60,262,200 | 30,131,100 | 30,131,100 |
Of the total number of shares outstanding, 6,605,000 are Class A shares and the remaining shares are Class B shares. The Annual General Meeting on March 22, 2018 resolved on a 2:1 share split, which entails that the number of shares after the split will amount to 60,262,000, of which 6,605,000 are Class A shares and the remaining shares are Class B shares. The split was carried out in May.
This interim report was prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union (EU). The presentation of the interim report complies with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.
No new or revised IFRS that took effect in 2018 had a significant impact on the Group. Accounting policies and terms of calculation are unchanged compared with those applied in the 2017 Annual Report. Significant accounting and valuation policies are found on pages 52–55 of the 2017 Annual Report.
IFRS 9 Financial Instruments applies as of January 1, 2018 and the Group's application of the standard is presented in Note 41 of the 2017 Annual Report. Beijer Alma has applied IFRS 9 since January 2018. IFRS 9 has not had any impact on the Group's earnings or financial position.
IFRS 15 Revenue from Contracts with Customers applies as of January 1, 2018 and the Group's application of the standard is presented in Note 41 of the 2017 Annual Report. Beijer Alma has applied IFRS 15 since January 1, 2018. The transition to IFRS 15 has not had any impact on the Group's earnings or financial position. In 2018, expenses of related to signing and carrying out agreements with customers in the offshore industry were capitalized in an amount of MSEK 7.9, which will be recognized as an intangible asset. The standard has resulted in additional disclosure requirements.
The fair value of financial assets and liabilities is deemed to correspond to the carrying amount.
IFRS 16 Leases was published by the IASB in January 2016 and adopted by the EU in October 2017. IFRS 16 replaces IAS 17 Leases. The standard requires that assets and liabilities attributable to all leases, with a few exceptions, be recognized in the balance sheet. Upon initial application of IFRS 16, the company can choose either to apply the standard with full retrospective effect or to apply a modified approach with relief rules. However, advance application is not permitted for companies applying IFRS 15. Beijer Alma's assessment is that IFRS 16 will impact the consolidated financial statements. The transition rule chosen is the exemption rule for simplified calculation on the transition date of January 1, 2019. The leases that had been entered into as of January 1, 2019 will increase the Group's total assets by approximately MSEK 223. These leases will have a negative impact of about MSEK 3 on profit before tax for 2019.
Beijer Alma applies the European Securities and Markets Authority's (ESMA) new Guidelines on Alternative Performance Measures. In short, an alternative performance measure is a financial measure of historical or future financial performance, financial performance or cash flows that is not defined or specified in IFRS. Definitions of the performance measures used in this interim report are available on the company's website.
The Parent Company, Beijer Alma AB, applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. With the exception of what is stated above regarding IFRS 9 and IFRS 15, these accounting policies correspond with the preceding year and with the consolidated accounting policies where applicable.
The interim report comprises pages 1–13, and pages 1–5 are thus an integrated part of this financial report.
| 2018 | 2017 | 2018 | 2017 | |
|---|---|---|---|---|
| Q4 | Q4 | Full-year | Full-year | |
| Lesjöfors | ||||
| of which, Industry | 460 | 426 | 1,864 | 1,676 |
| of which, Chassis Springs | 123 | 125 | 761 | 675 |
| Habia | ||||
| of which, Other Industry | 152 | 122 | 558 | 472 |
| of which, Telecom | 58 | 63 | 313 | 337 |
| Beijer Tech | ||||
| of which, Industrial Products | 135 | 136 | 498 | 452 |
| of which, Fluid Technology | 115 | 96 | 415 | 359 |
| Total Group | 1,043 | 968 | 4,409 | 3,971 |
| 2018 | 2017 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|
| Q4 | Q4 | Full-year | Full-year | Full-year | |
| Number of shares 1) | 60,262,200 | 60,262,200 | 60,262,200 | 60,262,200 | 60,262,200 |
| Net revenues, MSEK | 1,042.9 | 968.4 | 4,408.8 | 3,971.5 | 3,527.5 |
| Operating profit, MSEK | 128.8 | 124.9 | 622.8 | 528.4 | 455.2 |
| Profit before tax, MSEK | 125.8 | 123.0 | 609.2 | 517.4 | 447.0 |
| Earnings per share after tax, SEK 1) | 1.72 | 1.53 | 7.78 | 6.45 | 5.44 |
| Earnings per share after 22.0% standard tax, SEK 1) | 1.63 | 1.59 | 7.89 | 6.70 | 5.79 |
| Cash flow after capital expenditures, excluding acquisitions | |||||
| per share, SEK 1) | 0.92 | 1.14 | 3.87 | 4.48 | 3.68 |
| Return on shareholders' equity, % | 18.1 | 19.8 | 22.5 | 20.7 | 18.7 |
| Return on capital employed, % | 17.4 | 18.9 | 22.0 | 20.8 | 19.1 |
| Shareholders' equity per share, SEK 1) | 37.04 | 33.04 | 37.04 | 33.04 | 31.55 |
| Equity ratio, % | 59.9 | 58.0 | 59.9 | 58.0 | 60.3 |
| Net debt/equity ratio, % | 19.7 | 20.5 | 19.7 | 20.5 | 16.5 |
| Cash and cash equivalents, including unutilized credit | |||||
| facilities, MSEK | 857.2 | 894.3 | 857.2 | 894.3 | 967.9 |
| Investments in tangible assets, MSEK | 106.2 | 36.8 | 205.3 | 125.9 | 203.6 |
| Interest-coverage ratio, multiple | 36.5 | 41.0 | 39.9 | 42.5 | 48.8 |
| Number of employees at end of period | 2,622 | 2,546 | 2,622 | 2,546 | 2,341 |
1) recalculated after 2:1 split
It is our opinion that the year-end report for 2018 provides a true and fair overview of the Parent Company's and the Group's operations, financial position and earnings and describes the material risks and uncertainties to which the Parent Company and the companies included in the Group are exposed.
Uppsala, February 13, 2019
Beijer Alma AB (publ)
Johan Wall Johnny Alvarsson Carina Andersson Chairman of the Board Director Director
Anders G. Carlberg Caroline af Ugglas Anders Ullberg Director Director Director
Cecilia Wikström Henrik Perbeck Director President and CEO
We have reviewed the condensed interim financial information (interim report) of Beijer Alma AB (publ) as of December 31, 2018 and the 12-month period then ended. The Board of Directors and the President are responsible for the preparation and presentation of the interim financial information 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 International Standard on Review Engagements ISRE 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 has a different focus and a substantially more limited scope compared with the focus and scope of an audit conducted in accordance with the International Standards of Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant circumstances that might be identified in an audit. Therefore, the conclusion expressed on the basis of a review does not provide the same level of assurance as a conclusion expressed on the basis of an audit.
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.
Uppsala, February 13, 2019
Öhrlings PricewaterhouseCoopers AB
Leonard Daun Authorized Public Accountant
If you have any questions, please contact: Henrik Perbeck, President and CEO, tel: +46 18 15 71 60, [email protected] Jan Blomén, Chief Financial Officer, tel: +46 18 15 71 60, [email protected]
This information is information that Beijer Alma AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 12:30 p.m. on February 13.
______________________________________________________________________________________
Read more at: www.beijeralma.se
Visit our subsidiaries: www.lesjoforsab.com www.habia.com www.beijertech.se
Next report date: Interim report on May 6, 2019.
Beijer Alma AB (publ) Dragarbrunnsgatan 45, Box 1747, SE-751 47 Uppsala, Sweden. Tel: +46 18 15 71 60. Registered office: Uppsala. Corp. Reg. No. 556229-7480. www.beijeralma.se
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