Bilia — Earnings Release 2017

Feb 9, 2018

• Net turnover amounted to SEK 27,492 M (23,306).
• Operational earnings amounted to SEK 1,006 M (887).
• Net profit for the year was SEK 691 M (636) and earnings per share SEK 6.75 (6.20).
• Operating cash flow amounted to SEK 355 M (464).

• The Board of Directors proposes a regular dividend of SEK 4.50 (4.00).

• Net turnover amounted to SEK 7,186 M (6,297).

• Operational earnings amounted to SEK 278 M (265).
• Net profit for the period was SEK 184 M (173) and earnings per share SEK 1.80 (1.65).
• Operating cash flow amounted to SEK 53 M (-267).

In a comment on the fourth quarter, Bilia's Managing Director Per Avander says:

"Demand for service was slightly better and demand for cars was on a level with last year. Once again, we reported better earnings compared with last year. The improvement was attributable to the Service Business, which showed continued rapid growth and an improved margin. The Car Business reported a lower profit, which was attributable to sales of used cars. The order backlog of new cars remains at a good level. Operating cash flow was strong for a fourth quarter and our financial situation is good. We expect that demand for cars will be slightly lower during the first quarter of 2018, while demand for service will be slightly better compared with the same quarter last year."

	Fourth quarter		Full year
	2017	2016	2017	2016
Continuing operations
Net turnover, SEK M	7,186	6,297	27,492	23,906
Operational earnings, SEK M 1)	278	265	1,006	887
Operational margin, %	3.9	4.2	3.7	3.7
Operating profit, SEK M	258	252	923	841
Operating margin, %	3.6	4.0	3.4	3.5
Profit before tax, SEK M	252	247	896	833
Net profit for the period/year, SEK M	184	194	691	657
Earnings per share, SEK 2)	1.80	1.85	6.75	6.40
The Bilia Group
Loss from discontinued operation, net after tax (Denmark)	0	-21	0	-21
Net profit for the period/year, SEK M	184	173	691	636
Earnings per share, SEK 2)	1.80	1.65	6.75	6.20

1) For reconciliation of operational earnings with operating profit, see the table on page 5.

2) The number of shares used in the calculation is shown in the table on page 13.

See "Definitions and performance measures" on page 19.

Events after the end of the report period

No significant events have occurred after the end of the report period.

Fourth quarter

Bilia's Board of Directors resolved to buy back the company's own shares. The maximum number of shares was 625,000 and the share buy-backs began on 2 November 2017. The buy-backs were concluded during the fourth quarter. 625,000 shares were repurchased at an average price of SEK 75.50.

Events earlier during the year

• In January, Bilia issued unsecured bonds worth SEK 250 M. The bond issue carries a floating interest rate of STIBOR (3 months) plus 140 basis points and has a final maturity date in March 2021.
• On 7 March 2017, Bilia acquired an auto salvage business, Allbildelar Försäljning i Huddinge AB, plus a property company that owns the building in which the business is conducted.
• The 2017 Annual General Meeting resolved to split the company's outstanding shares. Due to the stock split, the calculation of basic and diluted earnings per share has been adjusted retroactively for the reported periods.
• On 1 June 2017, Bilia acquired Wölkes Bil AB, which operates a service and repair business for BMW and MINI cars in Gothenburg.
• Kristina Franzén was appointed the new CFO of Bilia and assumed office on 1 August 2017.
• Eva Cederbalk decided to leave her seat on Bilia's Board of Directors before the end of her term to accept a position at a bank.
• Bilia's Board of Directors resolved to buy back the company's own shares. The maximum number of shares was 1,250,000 and the share buy-backs began on 8 August 2017. The buy-backs were concluded during the third quarter. 1,224,000 shares were repurchased at an average price of SEK 82.
• Departing CFO Gunnar Blomkvist was elected as a member of Bilia's Board of Directors at the extraordinary shareholders meeting of 4 September 2017.
• Bilia signed a new lease agreement with Fabege for a new, ultramodern full-service facility to house its operation at Haga Norra, Solna, just north of Stockholm. The lease agreement covers a term of 20 years, with an option for Bilia to terminate after 15 years.
• Bilia concluded an agreement to acquire Bilsalongen AS, a BMW and MINI dealer in Norway. The planned date of possession is 1 January 2018. Bilsalongen's turnover in 2016 amounted to about SEK 340 M, with an operating margin of 2.3 per cent. Bilsalongen's capital employed, plus agreed-on surplus values, amounts to about SEK 55 M.

Further information on the above events and other press information is available at bilia.com.

Demand for cars was on a par with the same quarter last year, while demand for service was slightly better.

Net turnover amounted to SEK 7,186 M (6,297). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 785 M or about 12 per cent.

Operating profit amounted to SEK 258 M (252). Adjusted for revenue and costs that affect comparability, operational earnings amounted to SEK 278 M (265). The improvement was attributable to the Service Business, which increased its operational earnings by SEK 24 M despite one less working day during the quarter compared with last year. The Car Business reported lower earnings compared with last year, which was attributable to sales of used cars. Underlying Group overheads increased by about 5 per cent compared with last year. Overheads amounted to 13.0 per cent in relation to net turnover, which was 0.7 percentage point lower compared with last year. In recognition of the earnings level and customer satisfaction during the quarter, provision was made for employee bonuses in Sweden of SEK 3 M (4).

Net financial items amounted to SEK -6 M (-5). The decrease is attributable to higher net debt and a higher average interest rate.

Tax for the period amounted to SEK -68 M (-53), and the effective tax rate was 27 per cent (21).

Net profit for the period amounted to SEK 184 M (173) and earnings per share to SEK 1.80 (1.65). Exchange rate changes did not have any significant effect on earnings.

Total assets increased by SEK 431 M during the quarter, amounted to SEK 10,958 M.

Equity increased by SEK 134 M during the quarter, amounted to SEK 2,620 M. 625,000 Bilia shares were repurchased during the quarter at an average price of SEK 75.50 per share, amounted to a total purchase consideration of SEK 47 M. The equity/assets ratio amounted to 24 per cent (25).

Acquisition of non-current assets amounted to SEK 80 M (66). Replacement investments represented SEK 14 M (5), expansion investments SEK 25 M (14), environmental investments SEK 2 M (0) and investments in new construction and additions to properties SEK 30 M (38), while finance leases amounted to SEK 9 M (9).

Operating cash flow amounted to SEK 53 M (-267). After acquisitions and disposals of operations and change in financial assets, cash flow amounted to SEK 53 M (-269). Net debt decreased by SEK 16 M during the quarter, amounted to SEK 1,282 M.

Specification of interest-bearing net debt/receivable

SEK M	31/12 2017	31/12 2016
Current interest-bearing liabilities	729	334
Non-current interest-bearing liabilities	1,163	924
Pension liabilities	-	3
Cash and cash equivalents	-202	-104
Interest-bearing assets	0	-1
Interests in associated companies	-408	-381
Non-current leased assets	0	0
Net debt(+) / receivable(-) at end of year / period	1,282	775

Ratio of net debt to EBITDA

SEK M	31/12 2017	31/12 2016
Operational earnings	1,006	887
Total depreciation/amortisation	647	520
-amortisation of surplus values	-71	-55
-depreciation of leased vehicles with repurchase agreements	-354	-282
Depreciation/amortisation added back	222	183
EBITDA	1,228	1,070
The ratio of net debt to EBITDA rolling 12 months, times	1.0	0.7

See "Definitions and performance measures" on page 19.

Liquidity remains good, and at the end of December a positive bank balance (in Nordea and DNB) of SEK 107 M was reported. Repurchases of own shares during the fourth quarter amounted to SEK 47 M. Bilia's combined credit limit with Nordea and DNB amounts to SEK 1,500 M.

The number of employees increased by 155 during the quarter and amounted to 4,708 persons.

Demand for cars and service was slightly better than last year.

Net turnover amounted to SEK 27,492 M (23,906). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 1,825 M or 8 per cent.

Operating profit amounted to SEK 923 M (841). Adjusted for revenue and costs that affect comparability, operational earnings amounted to SEK 1,006 M (887). The improvement was mainly attributable to the Service Business, which boosted operational earnings by SEK 104 M. The Car Business reported a profit that was SEK 9 M higher than last year. Sales of new cars showed improved earnings, while sales of used cars reported lower earnings. Underlying Group overheads increased by just under 4 per cent compared with last year. Overheads amounted to 12.4 per cent in relation to net turnover, which was 0.2 percentage point lower compared with last year. In recognition of the earnings level and customer satisfaction during the year, provision was made for employee bonuses in Sweden of SEK 20 M (19).

Net financial items amounted to SEK -27 M (-8). The decrease is attributable to higher net debt and a higher average interest rate.

Tax for the year amounted to SEK -205 M (-176), and the effective tax rate was 23 per cent (21).

Net profit for the year was SEK 691 M (636) and earnings per share SEK 6.75 (6.20). Exchange rate changes did not have any significant effect on earnings.

Total assets increased by SEK 826 M during the year, amounted to SEK 10,958 M.

Equity increased by SEK 109 M during the year, amounted to SEK 2,620 M. 1,849,000 Bilia shares were repurchased during the year at an average price of SEK 79.50 per share, amounted to a total purchase consideration of SEK 147 M. The equity/assets ratio amounted to 24 per cent (25).

Bilia's financial goals were fulfilled as follows:

• Operating margin 3.4 per cent (goal 2.5)
• Return on capital employed 23.4 per cent (goal 17.0)
• Return on equity 27.0 per cent (goal 18.0)
• Ratio of net debt to EBITDA 1.0 times (goal not over 2.0)
• Growth 15.0 per cent (goal 5-10)

Acquisition of non-current assets amounted to SEK 331 M (268). Replacement investments represented SEK 56 M (75), expansion investments SEK 85 M (50), environmental investments SEK 4 M (2) and investments in new construction and additions to properties SEK 151 M (112), while finance leases amounted to SEK 35 M (29).

Operating cash flow amounted to SEK 355 M (464). After acquisitions and disposals of operations and change in financial assets, cash flow amounted to SEK 74 M (317). Net debt increased by SEK 507 M during the first six months, amounted to SEK 1,282 M.

The number of employees increased by 381 during the quarter, amounted to 4,708 persons. Acquisitions of operations have increased the number of employees by 185.

	Fourth quarter		Full year
Group, SEK M	2017	2016	2017	2016
Operational earnings	278	265	1,006	887
- Gain from sale of operation	0	0	8	21
- Redemption of pension liability	0	6	0	6
- Structural costs etc.	-3	0	-17	-7
- Acquisition-related costs and value adjustments	0	-3	-3	-11
- Amortisation of surplus values	-17	-16	-71	-55
Operating profit	258	252	923	841

See "Definitions and performance measures" on page 19.

"Gain from sale of operation" during 2017 pertains to the sale of the Ford operation in Stockholm. "Structural costs" during 2017 pertain mainly to the estimated cost of winding up the remaining Ford operation in Sweden and Norway.

"Acquisition-related costs and value adjustments" pertain to costs for the acquisition of operations and properties in Sweden.

		Deliveries			Order backlog
No. of new		Fourth quarter Full year			31 Dec.
cars per region	2017	2016	2017	2016	2017	2016
Sweden 1)	8,980	9,176	36,853	34,896	7,715	8,032
Norway	2,802	2,605	9,940	9,097	2,792	2,278
Western Europe 2)	1,535	1,510	6,103	3,999	988	1,017
Total	13,317	13,291	52,896	47,992	11,495	11,327

1) MW Group is included in deliveries during the quarter with 629 (-) and during the year with 2,611 (-) and with 227 (-) in order backlog. 2) Schäfer, Germany is included in deliveries during the year with 690 (355).

Luxembourg is included in deliveries during the year with 2,711 (1,926).

Belgium is included in deliveries during the year with 1,770 (822).

		Net turnover				Operational earnings, margin
	Fourth quarter		Full year			Fourth quarter			Full year
Regions, SEK M	2017	2016	2017	2016	2017	%	2016	%	2017	%	2016	%
Sweden	4,423	4,015	17,235	15,763	213	4.8	223	5.6	773	4.5	719	4.6
Norway	2,051	1,645	7,324	6,278	67	3.3	51	3.1	243	3.3	200	3.2
Western Europe	708	634	2,923	1,858	24	3.3	15	2.4	53	1.8	30	1.6
Total	7,182	6,294	27,482	23,899	304	4.2	289	4.6	1,069	3.9	949	4.0
Parent Company, other	4	3	10	7	-26	-	-24	-	-63	-	-62	-
Total	7,186	6,297	27,492	23,906	278	3.9	265	4.2	1,006	3.7	887	3.7

See "Definitions and performance measures" on page 19.

Strong earnings in all regions

Margins exceeded our financial goal in all regions

The market for new cars decreased during the fourth quarter by 1 per cent in Sweden, while it increased by 9 per cent in Norway and 3 per cent in Western Europe.

The Group reported operational earnings of SEK 278 M (265) and an operational margin of 3.9 per cent (4.2). There was one less working day in the fourth quarter compared with last year, which mainly affected the Service Business, which nevertheless reported SEK 24 M more in earnings. Earnings for the Car Business decreased by SEK 10 M, while they increased by SEK 1 M for the Fuel Business compared with last year. The order backlog increased by 54 cars during the quarter, amounted to 11,495 cars.

The operation in Sweden reported earnings of SEK 213 M (223), with a margin of 4.8 per cent (5.6). Underlying turnover in the Service Business increased by 6.1 per cent and earnings improved by SEK 27 M compared with last year. The number of mechanics increased also during the fourth quarter, but we still need to hire more mechanics. The Car Business reported lower earnings compared with last year, which was above all attributable to sales of used cars. Sales of used cars reported a loss of SEK 14 M (profit: 7). The poorer result was mainly attributable to the valuation of the car stocks. The turnover rate for used cars remains at a high level.

Earnings in Bilia's Norwegian operation amounted to SEK 67 M (51), with a margin of 3.3 per cent (3.1). The Car Business reported earnings that were SEK 26 M better than last year, attributable to sales of new cars. Sales of used cars showed a loss of SEK 5 M (profit: 5). The poorer result was mainly attributable to the valuation of the car stocks. Stocks of used cars increased compared with the previous quarter. The Service Business reported lower earnings, due to the fact that there was one less working day in the fourth quarter compared with last year.

The operation in Western Europe reported a profit of SEK 24 M (15), with a margin of 3.3 per cent (2.4). Both the Car and Service Businesses reported improved earnings compared with last year. Profit in the Car Business was SEK 6 M (4) for the quarter, and the Service Business showed a profit of SEK 18 M (11). The operations in Luxembourg and Belgium continued to develop positively, while Germany faces a challenge in downward price pressure on new cars in the market.

	Net turnover 1)			Operational earnings, margin
	Fourth quarter		Full year		Fourth quarter		Full year
SEK M	2017	2016	2017	2016	2017	2016	2017	2016
Service Business	1,695	1,564	5,998	5,319	235	211	704	600
- margin, %					13.9	13.5	11.7	11.3
Car Business	5,575	4,783	21,607	18,565	62	72	333	324
- margin, %					1.1	1.5	1.5	1.7
Fuel Business	293	271	1,141	1,031	7	6	32	25
- margin, %					2.3	2.3	2.8	2.4

Service includes workshop services, spare parts and accessories.

The Car Business includes sales of new and used cars and customer financing.

1) Net turnover does not include eliminations for internal sales.

Growth in the Service Business

		Fourth quarter
Per cent	Sweden	Norway	Total	Sweden	Full year Norway	Total
Change from last year
Underlying turnover	6.1	4.0	5.5	7.5	4.3	6.6
Calendar effect	1.6	1.6	1.6	0.8	0.8	0.8
Adjusted turnover	7.7	5.6	7.1	8.3	5.1	7.4

See "Definitions and performance measures" on page 19.

Continued strong growth and earnings in the Service Business

Strong earnings from sales of new cars

The Service Business reported a profit during the fourth quarter that was SEK 24 M better compared with last year, with a further improved margin of 13.9 per cent (13.5). Demand was very good, and we are still looking for mechanics, especially in Sweden. Sweden's adjusted turnover increased by 7.7 per cent and Norway's by 5.6 per cent year compared with last year. There was one less working day in all countries compared with the same quarter last year.

Deliveries of new cars in the Car Business decreased by 2 per cent for comparable operations, and deliveries of used cars decreased by 4 per cent compared with last year. Underlying orders received for new cars during the quarter increased by 4 per cent compared with last year. Earnings from sales of new cars improved by SEK 22 M, due mainly to higher turnover. The increase is attributable to a higher average selling price, due to the fact that the proportion of expensive cars increased considerably. Sales of used cars during the quarter showed a loss of SEK 23 M, compared with a profit of SEK 5 M last year. The poorer result was mainly attributable to the valuation of the car stocks. The stocks increased slightly during the quarter, but the turnover rate remained at a high level, about 10 times per year.

The Fuel Business is concentrated to Sweden, and earnings amounted to SEK 7 M (6).

All values in the above graphs pertain to isolated quarters.

On 3 January 2017, Bilia acquired the Toyota dealer MW Gruppen Stockholm AB plus three property companies, which together are deemed to constitute a business acquisition. The business is run from five facilities: three just south of Stockholm in Nacka, Haninge and Kungens Kurva, one in Södertälje and one in Eskilstuna. The operation has an annual turnover of around SEK 700 M and has reported an average operating profit of around SEK 28 M for the past two years. The purchase consideration was SEK 297 M. The entire purchase consideration was paid in cash. There is no contingent purchase consideration.

The acquisition provides opportunities for synergies with Bilia's other Toyota operation in Sweden.

The businesses have about 115 employees and will continue to be operated from the present-day facilities.

Acquisition-related expenses amounting to SEK 0.5 M consist of fees to consultants for due diligence and have been recognized as "Other operating expenses".

Effects of the acquisition

Below is the final acquisition analysis, and the difference between the final acquisition analysis and the preliminary version that was presented during the fourth quarter of 2016 is shown in a separate column. The acquisition has the following effect on the Group's assets and liabilities.

	Carrying amounts in MW Gruppen	Fair value	Fair value recognised in	Difference versus preliminary acquisi
MSEK	Stockholm	adjustment	Group	tion analysis
Intangible assets	0	88	88	0
Property, plant and equipment	164	95	259	2
Long-term investments	8		8	0
Deferred tax asset	1		1	0
Inventories	77	1	78	0
Trade receivables and other receivables	42		42	0
Cash and cash equivalents	17		17	0
Interest-bearing liabilities	44		44	-1
Trade payables and other liabilities	167		167	-7
Deferred tax liability	5	41	46	0
Net identifiable assets and liabilities	93	143	236	10
Consolidated goodwill			61	0
Purchase consideration paid			297	10
Less: Cash and cash equivalents in aquired operation			17	0
Net effect on cash and cash equivalents			280	10

Acquired customer relations totalling SEK 88 M are recognised as intangible assets. Customer relations will be amortised over 10 years.

The goodwill item is attributable in its entirety to synergies made available by the acquisition.

The acquisitions of Allbildelar Försäljning i Huddinge AB, a property company and a BMW- and MINIworkshop in 2017 do not have any essential impact on the Group, so the acquisition analysis is not presented.

Bilia AB is responsible for the Group's management, strategic planning, purchasing, public relations, business development, marketing, HR, real estate activities, accounting and financing.

The Parent Company's operating loss for the fourth quarter amounted to SEK -24 M (loss: 20).

As a result of its operations, the Bilia Group is exposed to both operating risks and financial risks.

The operating risks include:

• Market trend for new cars, new technology and alternative sales channels.
• Diminished demand for cars can also affect the value of stock in hand and guaranteed residual values.
• Reduced demand for service and repairs.
• Increased competition in the markets where Bilia is active.
• The ability of suppliers to offer competitive products.
• Automotive suppliers become insolvent or terminate retailer agreements with Bilia.
• Regulatory decisions that lead to changes in taxes and charges on the products Bilia sells can influence both demand for and the valuation of cars in stock and cars sold with guaranteed residual values.

The financial risks include liquidity risks, interest rate risks, credit risks and currency risks.

Bilia works continuously with risk identification and risk assessment. For further information about the risks that affect the Group, please refer to the 2016 Annual Report.

This interim report has been prepared in accordance with International Financial Accounting Standards (IFRSs) IAS 34 and applicable provisions of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, "Interim Reports". The same accounting policies and calculation methods have been applied for the Group and the Parent Company as in the most recent annual report.

New IFRSs have not had any significant effect on the Group's or the Parent Company's financial reports during the year. A number of new or revised IFRSs will enter into effect until during the coming financial year. Starting in 2018, IFRS 15 Revenue from Contracts with Customers will replace existing IFRS standards related to revenue recognition, such as IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. IFRS 15 is based on recognising revenue when control over a good or service is transferred to the customer, which differs from the existing principle of revenue recognition based on transfer of risks and rewards. An evaluation has been made of the effects of the application of IFRSs on Bilia's accounts, whereby it was found that they have no significant effect on the financial statements. IFRS 9 Financial Instruments is not judged to have any significant effect on the financial statements.

Disclosures in accordance with IAS 34, paragraph 16, are made not only in the financial statements and notes, but also in other parts of the interim report.

The Annual General Meeting will be held on 10 April 2018 at IVA Konferenscenter, Grev Turegatan 16, in Stockholm. Shareholders who wish to have a matter on the agenda at the AGM should contact Bilia no later than 20 February 2018 in order for the matter to be included in the notice of the meeting.

The annual report for 2017 will be published on Bilia's website on 20 March 2018.

On 2 January 2018, Bilia acquired the BMW and MINI dealer in Norway Bilsalongen AS. The business is run from one facility in Skien.

Effects of the acquisition

The acquisition has the following effects on the Group's assets and liabilities. The following figures for acquired net assets and purchase consideration are preliminary.

MSEK
Intangible assets	22
Property, plant and equipment	3
Long-term investments	0
Deferred tax asset	0
Inventories	49
Trade receivables and other receivables	19
Cash and cash equivalents	0
Interest-bearing liabilities	11
Trade payables and other liabilities	36
Deferred tax liability	5
Net identifiable assets and liabilities	41
Consolidated goodwill	15
Purchase consideration paid	56
Less: Cash and cash equivalents in aquired operation	0
Net effect on cash and cash equivalents	56

This year-end report has not been subjected to special examination by the auditors.

The interim report for the first quarter of 2018 will be published on 27 April 2018.

Gothenburg, 9 February 2018 Bilia AB (publ) Board of Directors

For further information, please contact Per Avander, Managing Director and CEO, or Kristina Franzén, CFO, telephone +46 10 497 70 00.

Bilia AB (publ) Box 9003, SE-400 91 Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: +46 10 497 70 00 bilia.com Corporate ID No.: 556112-5690

This is information that Bilia AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 9 February 2018, at 1 p.m. CET.

		Service		Car		Fuel	Total			Segment	Group
										reconciliation
SEK M	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
Net turnover
External sales	4,734	4,303	21,607	18,565	1,141	1,031	27,482	23,899	10	7	27,492	23,906
Internal sales	1,264	1,016					1,264	1,016	-1,264	-1,016	-	-
Total net turnover	5,998	5,319	21,607	18,565	1,141	1,031	28,746	24,915	-1,254	-1,009	27,492	23,906
Depreciation/amortisation	-105	-83	-498	-402	-5	-4	-608	-489	-39	-31	-647	-520
Operational earnings/Operating profit/loss	704	600	333	324	32	25	1,069	949	-146	-108	923	841
Interest income											26	28
Interest expenses											-85	-66
Shares in profits of associated companies			32	30			32	30			32	30
Profit before tax											896	833
Tax expense for the period											-205	-176
Profit for the year from continuing operations											691	657
Loss from discontinued operation,
net after tax											-	-21
Net profit for the period											691	636
Revenue and cost items that affect the comparability
of the Group's operating profit:
- Profit from sale of operation, other	6	15	2	6			8	21			8	21
- Redemption of pension liability	0	2	0	4			0	6			0	6
- Structural costs etc.	-10	-1	-7	-6			-17	-7			-17	-7
- Acquisition-related costs and value adjustments	-2	-6	-1	-5			-3	-11			-3	-11
- Amortisation of surplus values	-35	-26	-36	-29			-71	-55			-71	-55
Total	-41	-16	-42	-30	-	-	-83	-46	-	-	-83	-46
Other items not affecting cash besides depreciation/amortisation	-46	-51	-33	-6	0	0	-79	-57	12	59	-67	2
Assets
Interests in associated companies			408	381			408	381			408	381
Deferred tax assets											79	84
Other assets											10,471	9,667
Total assets											10,958	10,132
Investments in non-current assets	139	103	1,684	1,765	7	13	1,830	1,881	78	67	1,908	1,948
Liabilities
Equity											2,620	2,511
Liabilities											8,338	7,621
Total liabilities and equity											10,958	10,132

		Revenue from	Non-current
		external customers		assets
SEK M	2017	2016	2017	2016
Geographical segments
Sweden	17,248	15,772	5,518	4,457
Norway	7,324	6,278	901	985
Germany	1,039	819	80	63
Luxembourg	1,138	730	604	615
Belgium	746 309		267	271
Segment reconciliation	-3 -2 -1,602			-1,370
Total	27,492	23,906	5,768	5,021

Full year

	Service				Car
		Sweden		Norway		Western Europé 1)		Sweden		Norway		Western Europé 1)
SEK M	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
Net turnover
External sales	3,184	2,889	1,060	1,042	490	372	12,916	11,849	6,258	5,230	2,433	1,486
Internal sales	780	615	420	358	64	43
Total net turnover	3,964	3,504	1,480	1,400	554	415	12,916	11,849	6,258	5,230	2,433	1,486
Depreciation/amortisation	-64	-51	-15	-13	-26	-19	-436	-350	-35	-32	-27	-20
Operational earnings/Operating profit/loss	503	422	167	153	34	25	238	272	76	47	19	5
Shares in profits of associated companies							32	30
Revenue and cost items that affect the comparability
of the Group's operating profit:
- Profit from sale of operation, other	6	15					2	6
- Redemption of pension liability				2						4
- Structural costs etc.	-8	1	-2	-2			-6	-2		-4	-1
- Acquisition-related costs and value adjustments	-2	-1				-5	-1	-1				-4
- Amortisation of surplus values	-12	-9	-8	-8	-15	-9	-13	-9	-8	-8	-15	-12
Total	-16	6	-10	-8	-15	-14	-18	-6	-8	-8	-16	-16
Other items not affecting cash besides depreciation/amortisation	-42	-48	-4	-3	0	0	-41	-11	8	5	0	0
Assets
Interests in associated companies							408	381
Investments in non-current assets	95	62	19	37	25	4	1,429	1,471	206	242	49	52

1) Schäfer, Germany is included as from 1 August 2016. Luxembourg is included as from 1 April 2016. Belgium is included as from 1 July 2016.

	Fourth quarter		Full year
SEK M	2017	2016	2017	2016
Continuing operations
Net turnover	7,186	6,297	27,492	23,906
Costs of goods sold	-5,995	-5,188	-23,169	-20,069
Gross profit	1,191	1,109	4,323	3,837
Other operating income	5	12	17	38
Selling expenses	-758	-698	-2,762	-2,451
Administrative expenses	-173	-162	-631	-556
Other operating expenses	-7	-9	-24	-27
Operating profit 1)	258	252	923	841
Financial income	7	-11	26	28
Financial expenses	-22	-2	-85	-66
Shares in profits of associated companies	9	8	32	30
Net financial items	-6	-5	-27	-8
Profit before tax	252	247	896	833
Tax	-68	-53	-205	-176
Profit for the period from continuing operations	184	194	691	657
Discontinued operation
Loss from discontinued operation,
net after tax	0	-21	0	-21
Net profit for the period	184	173	691	636
Other comprehensive income/loss
Items that can be reclassified to profit or loss
Translation differences attributable to foreign
operations	4	-9	-14	55
Translation differences transferred to the net profit for the year	0	20	0	20
Tax attributable to items that have been or may be
reclassified to profit or loss	0	0	0	0
	4	11	-14	75
Other comprehensive income/loss after tax	4	11	-14	75
Comprehensive income for the period	188	184	677	711
Net profit for the period attributable to:
Parent Company's shareholders	184	173	691	636
Comprehensive income for the period
attributable to:
Parent Company's shareholders	188	184	677	711
Weighted average number of shares, '000:
- before dilution	101,222	102,800	102,283	102,261
- after dilution	101,222	102,800	102,283	102,296
Basic earnings/loss per share, SEK	1.80	1.65	6.75	6.20
Diluted earnings/loss per share, SEK	1.80	1.65	6.75	6.20
Weighted average number of own shares, '000	870	-	339	-
Continuing operations
Basic earnings/loss per share, SEK	1.80	1.85	6.75	6.40
Diluted earnings/loss per share, SEK	1.80	1.85	6.75	6.40
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	-22	-21	-93	-73
- Land and buildings	-25	-15	-50	-30
- Equipment, tools, fixtures and fittings	-13	-15	-89	-80
- Leased vehicles	-111	-95	-415	-337
Total	-171	-146	-647	-520

SEK M	31/12 2017	31/12 2016
Assets
Non-current assets
Intangible assets
Intellectual property	583	550
Goodwill	723	657
	1,306	1,207
Property, plant and equipment
Land and buildings	599	235
Construction in progress	29	19
Equipment, tools, fixtures and fittings	453	427
Leased vehicles 1)	2,966	2,744
	4,047	3,425
Long-term investments
Financial investments 1)	415	388
Long-term receivables 2)	0	1
	415	389
Deferred tax assets	79	84
Total non-current assets	5,847	5,105
Current assets
Inventories, merchandise	3,408	3,451
Current receivables
Other receivables 1)	1,501	1,472
Cash and cash equivalents 2)	202	104
Total current assets	5,111	5,027
Total assets	10,958	10,132
Equity and liabilities
Equity
Share capital	257	257
Other contributed capital	167	167
Reserves	-38	-24
Retained earnings including net profit for the year	2,234	2,111
Total equity	2,620	2,511
Non-current liabilities
Bond issue 3)	1,006	751
Interest-bearing liabilities 4)	163	174
Other liabilities and provisions 3)	2,246	2,077
	3,415	3,002
Current liabilities
Interest-bearing liabilities 4)	729	334
Other liabilities and provisions	4,194	4,285
	4,923	4,619
Total equity and liabilities	10,958	10,132
Assets
1) Of which interest-bearing	408	381
2) Interest-bearing	202	105
Liabilities
3) Of which interest-bearing	1,000	753
4) Interest-bearing	892	508

SEK M	31/12 2017	31/12 2016
Opening balance	2,511	2,056
Cash dividend to shareholders	-412	-380
Exercised warrants/debenture loan	-	2
Sold warrants	-	1
New share issue	-	115
Discount/issue at discounted price	-	6
Buy-back of own shares	-147	-
Revaluation of put option	-9	-
Comprehensive income for the year	677	711
Closing balance	2,620	2,511

	Fourth quarter		Full year
SEK M	2017	2016	2017	2016
Operating activities
Profit before tax from continuing operations	252	247	896	833
Loss before tax from discontinued operation	0	-21	0	-21
Depreciation and impairment losses from continuing operations	225	148	701	522
Depreciation and impairment losses from discontinued operation	0	0	0	0
Other items not affecting cash	-27	-8	-67	2
Tax paid	-53	-50	-203	-153
Change in inventories	-186	-510	29	-311
Change in operating receivables	-252	-57	-40	-9
Change in operating liabilities	242	330	-23	791
Cash flow from operating activities	201	79	1,293	1,654
Investing activities
Acquisition of non-current assets (intangible and tangible)	-80	-66	-331	-268
Disposal of non-current assets (intangible and tangible)	3	4	7	19
Acquisition of leased vehicles	-446	-612	-1,577	-1,680
Disposal of leased vehicles	375	328	963	739
Operating cash flow	53	-267	355	464
Investment in financial assets	-1	-2	-4	-9
Disposal of financial assets	1	2	13	65
Acquisition of subsidiary/operation, net	0	-7	-344	-250
Disposal of subsidiary/operation, net	0	5	54	47
Cash flow from investing activities	-148	-348	-1,219	-1,337
Cash flow after net investments	53	-269	74	317
Financing activities
Borrowings	269	231	917	976
Repayment of loans	-181	0	-281	-866
Repayment of lease liabilities	-14	-13	-54	-48
Exercised warrants/debenture loan	0	0	0	2
Sold warrants	0	0	0	1
Buy-back of own shares	-47	0	-147	0
Revaluation of put option	-7	0	-9	0
Dividend paid to the company's shareholders	0	0	-412	-380
Cash flow from financing activities	20	218	14	-315
Change in cash and cash equivalents, excl. translation
differences	73	-51	88	2
Exchange difference in cash and cash equivalents	12	-2	10	3
Change in cash and cash equivalents	85	-53	98	5
Cash and cash equivalents at start of period	117	157	104	99
Cash and cash equivalents at end of period	202	104	202	104

Derivative instruments such as interest rate swaps and forward exchange contracts are used to control Bilia's interest rate risk. They may only be to meet the requirements on minimising risk in a cost-effective manner as prescribed by the finance policy.

The carrying amount of financial instruments is a reasonable approximation of fair value.

Fair value is determined on the basis of the following three levels:

Level 1: according to prices quoted on an active market for the same instrument.

Level 2: based on directly or indirectly observable market inputs other than those included in level 1. Level 3: according to inputs not based on observable market data.

Currency derivatives that belong to financial assets and liabilities, valuation level 2, have been valuated to fair value. The value of the currency derivatives is not material and does not constitute a significant item in the Consolidated Statement of Financial Position. Measurement of the currency derivatives at fair value has resulted in cost of SEK 1 M that is matched by a revaluation of assets in foreign currencies. The effect on the Group's profit is SEK 0 M.

The fair value of currency derivatives is determined on the basis of market rates. If such rates are not available, the fair value is calculated by discounting the difference between the contracted forward rate and the forward rate that can be obtained on the balance sheet date for the remaining contract period.

	1/16	2/16	3/16	4/16	1/17	2/17	3/17	4/17
Continuing operations
Net turnover, SEK M	5,433	6,433	5,743	6,297	6,815	7,189	6,302	7,186
Operational earnings, SEK M	195	240	187	265	267	261	200	278
Operational margin, %	3.6	3.7	3.3	4.2	3.9	3.6	3.2	3.9
Operating profit, SEK M	185	241	163	252	244	240	181	258
Operating margin, %	3.4	3.7	2.8	4.0	3.6	3.3	2.9	3.6
Profit before tax, SEK M	183	241	162	247	234	234	176	252
The ratio of net debt to EBITDA, times 1)	0.8	0.7	0.5	0.7	0.7	1.1	1.1	1.0
The Bilia Group
Profit/loss for the period, SEK M	143	193	127	173	181	183	143	184
Return on capital employed, % 1)	35.6	29.7	28.8	26.4	26.1	25.2	24.1	23.4
Return on equity, % 1)	39.7	32.9	31.0	27.9	28.3	27.4	27.3	27.0
Equity/assets ratio, %	26	24	25	25	25	23	24	24
Data per share (SEK) 2)
Earnings/loss for the period	1.40 3)	1.90 5)	1.25	1.65	1.75	1.80	1.40 6)	1.80 8)
Equity	22 4)	21	23	24	26	24	24 7)	26 9)

See "Definitions and performance measures" on page 19.

1) Rolling 12 months.

2) Based on number of shares outstanding, 102,799,952.

3) Based on weighted average number of shares outstanding during first quarter, 101,325,845.

4) Based on number of shares outstanding at 31 March 2016, 101,401,468.

5) Based on weighted average number of shares outstanding during second quarter, 102,108,394.

6) Based on weighted average number of shares outstanding during third quarter, 102,326,267.

7) Based on number of shares outstanding at 30 September 2017, 101,575,952.

8) Based on weighted average number of shares outstanding during fourth quarter, 101,221,876.

9) Based on number of shares outstanding at 31 December 2017, 100,950,952.

	Fourth quarter		Full year
SEK M	2017	2016	2017	2016
Net turnover	108	88	423	385
Administrative expenses	-132	-108	-491	-445
Operating loss 1)	-24	-20	-68	-60
Result from financial items
Income from interests in Group companies	-24	6	89	41
Interest income from Group companies	8	7	41	33
Other interest income and similar line items	8	-12	25	25
Interest expenses to Group companies	0	0	0	0
Interest expenses and similar line items	-14	7	-54	-43
Loss after financial items	-46	-12	33	-4
Appropriations	482	683	482	683
Profit before tax	436	671	515	679
Tax	-87	-138	-87	-133
Net profit for the year	349	533	428	546
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	0	-1	-1	-6
- Buildings	-2	-1	-8	-4
- Equipment, tools, fixtures and fittings	0	0	0	-2
Total	-2	-2	-9	-12

SEK M	31/12 2017	31/12 2016
Assets
Non-current assets
Intangible assets
Intellectual property	1	2
Property, plant and equipment	1	2
Buildings	73	43
Construction in progress	28	15
Equipment, tools, fixtures and fittings	2	2
	103	60
Long-term investments
Interests in Group companies	1,348	1,122
Other securities held as non-current assets	0	0
Deferred tax asset	45	46
	1,393	1,168
Total non-current assets	1,497	1,230
Current assets
Current receivables
Receivables from Group companies	1,489	1,486
Other receivables	92	196
Cash on hand and accrued deposits	107	27
Total current assets	1,688	1,709
Total assets	3,185	2,939
Equity and liabilities
Equity
Restricted equity
Share capital	257	257
Statutory reserve	47	47
	304	304
Non-restricted equity
Share premium reserve	167	167
Retained earnings including net profit for the year	801	931
	968	1,098
Total equity	1,272	1,402
Untaxed reserves	622	495
Provisions
Deferred tax liability	5	3
	5	3
Non-current liabilities
Bond issue	1,006	751
Other liabilities	5	5
	1,011	756
Current liabilities
Liabilities to Group companies	88	21
Other liabilities	187 275	262 283
Total equity and liabilities	3,185	2,939

Bilia applies the new guidelines from ESMA (European Securities and Markets Authority) concerning alternative performance measures (APMs). Even though these performance measures are not defined or specified by IFRSs, Bilia believes that they provide valuable information to investors and Bilia's management as a complement to IFRSs for assessing Bilia's performance.

Return on equity Net profit for the year in relation to average equity.

Return on capital employed Operating profit plus interest expense included in the business and financial income in relation to average capital employed.

Amortisation of surplus values Occurs in connection with acquisitions of operations and is recognised under intangible assets. Normally these surplus values are amortised over a 10-year period.

EBITDA Operational earnings plus total depreciation/amortisation less amortisation of surplus values and depreciation of leased vehicles with repurchase agreements.

Acquisition-related costs and value adjustments Pertains to costs for legal consultants and other external costs associated directly with an acquisition, and value adjustments regarding acquired inventory assets, which are depreciated over the turnover rate of the asset.

Adjusted turnover Net turnover is adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is also made for exchange rate differences and for calendar effect.

Comparable operations Financial information and number of units that are adjusted for operations that have been acquired or disposed of during one of the periods.

Deliveries Cars that have been physically turned over to the customer and invoiced and are included in reported net turnover.

Liquidity Unutilised credit with Nordea and DNB and cash and cash equivalents.

Net debt Net debt consists of interest-bearing liabilities less cash and cash equivalents, interestbearing current and long-term receivables, interests in associated companies and leased vehicles, long-term.

The ratio of net debt to EBITDA Net debt in relation to EBITDA.

Operating cash flow Cash flow from operating activities plus investments in and disposals of intangible assets and property, plant and equipment.

Operational margin Operational earnings in relation to net turnover.

Operational earnings Operating profit, excluding revenues and costs that affect comparability between accounting periods and/or operating segments. They include, but are not limited to, acquisition-related expenses, value adjustments, restructurings and amortisation of surplus values.

Order backlog New cars ordered by the customer but not yet delivered.

Gain from sale of operation Difference between purchase consideration and the operation's consolidated carrying amount, less selling costs.

Operating margin Operating profit in relation to net turnover.

Equity/assets ratio Equity in relation to balance sheet total.

Structual costs Costs that significantly alter the thrust and/or scope of the operation. Examples of structural costs may be costs for reducing the number of employees and costs for vacating a leased facility before the expiration of the lease.

Capital employed Balance sheet total less non-interest-bearing current liabilities and provisions as well as deferred tax liabilities.

Growth Increase or decrease of net turnover in relation to the preceding year.

Underlying values Values that are adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is made for exchange rate differences, where applicable.

Reconciliation of performance measures can be found at bilia.com/en//finances/finances/performancemeasures/.