Bilia — Interim / Quarterly Report 2013

Oct 25, 2013

Everything to do with our finances. And then some.

Report for the third quarter of 2013

Report for the third quarter of 2013

Nine months

• Net turnover amounted to SEK 12,778 M (13,128).
• Net profit for the period was SEK 162 M (80) and earnings per share SEK 6.55 (3.20).

Third quarter

• Net turnover amounted to SEK 4,155 M (3,824).
• Operating profit excluding items affecting profitability amounted to SEK 96 M (53).
• Net profit for the period was SEK 54 M (loss: 8) and earnings per share SEK 2.15 (LPS: 0.35).
• Operating cash flow amounted to SEK 29 M (30).

In a comment on the third says:

Demand for cars and service was slightly better compared with both the second quarter of this year and the same quarter last year. The Service Business continued to develop very positively and reported considerably better earnings than last year. The Car Business also reported better earnings compared with last year, mainly due to strong earnings in sales of used cars and more new car deliveries. The order backlog of new cars

increased, and the Group s financial position continues to be strong. Cost reductions are a focus area, and further steps were taken during the quarter. We believe that demand for cars and service during the fourth quarter of 2013 will be on a level with the situation during the third quarter of the year.

	Third quarter		Nine months		Oct. 12 -	Full year
Group	2013	2012	2013	2012	Sept. 13	2012
Net turnover, SEK M	4,155	3,824	12,778	13,128	17,312	17,662
Operating profit excl. items affecting
comparability, SEK M 1 )	96	53	236	192	375	331
Operating margin excl. items affecting
comparability, %	2.3	1.4	1.9	1.5	2.2	1.9
Operating profit, SEK M	76	22	211	158	323	270
Operating margin, %	1.8	0.6	1.7	1.2	1.9	1.5
Profit before tax excl. items affecting
comparability, SEK M 1 )	93	49	237	179	372	314
Profit before tax, SEK M	73	18	212	145	320	253
Net profit/loss for the period / year, SEK M	54	-8	162	80	238	156
Earnings/loss per share, SEK 2)	2.15	-0.35	6.55	3.20	9.65	6.30

1 ) Items affecting comparability are shown in the table on page 4.

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

Notable events during 2013

• On 3 October, Bilia in Norway concluded an agreement to acquire a workshop business for BMW in Tønsberg, Norway. The number of employees amounts to 16 persons, and annual turnover is SEK 30 M. The purchase consideration amounts to SEK 2 M, and the date of possession is 1 November 2013.
• On 24 September, Bilia s Board of Directors resolved to exercise the AGM s mandate to sell the company s own shares. After the sale of 165,628 shares, 290,865 own shares remain. The sales proceeds of SEK 23 M, which include a profit of SEK 8 M, have been posted to equity.
• On 16 August, Bilia concluded an agreement to sell the BMW operation in Uddevalla, Henån and Strömstad. The buyer was ANA Trollhättan AB, which concluded an agreement earlier this year with the Swedish BMW importer to start up sales of BMW in Trollhättan as well. The purchase consideration was SEK 21 M and the date of possession was 1 September 2013. The gain from the sale amounted to SEK 0 M, and the Bilia Group s capital employed and net debt are expected to decrease by about SEK 40 M as an effect of the sale.
• During the year up to and including the 30th of September, 17,960 warrants were exercised to subscribe for new shares, resulting in a new issue of SEK 0.3 M. The number of outstanding warrants at 30 September was 327,196.

Events reported during previous quarters

Bilia in Norway acquired Kverneland s operation in Drammen, purchase consideration SEK 25 M. At the same time, Kverneland acquired Bilia s operation in Bryne, purchase consideration SEK 12 M.

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

Third quarter 2013

Demand for cars and service was slightly better compared with both the second quarter of this year and the same quarter last year.

Net turnover amounted to SEK 4,155 M (3,824). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 285 M or 8 per cent. The increase is attributable to sales of both cars and service.

Operating profit amounted to SEK 76 M (22). If items affecting comparability are excluded, the profit was SEK 96 M (53). The improvement is mainly attributable to the Service Business, which reported much better earnings due to higher turnover and slightly lower costs. The Car Business also reported better earnings due to strong earnings in sales of used cars and more new car deliveries. Underlying overheads increased by 1 per cent compared with last year. Overheads amounted to 13.2 per cent in relation to net turnover, which was 0.8 percentage point lower compared with last year. As a result of the earnings level during the quarter, provision was made for employee bonuses of SEK 6 M (1).

Net financial items amounted to SEK -3 M (-4).

Tax for the period amounted to SEK -19 M (-26). No tax asset has been recognised on this quarter s and last year s deficits in Denmark. The unutilised loss carryforwards in Denmark were also written down to SEK 0 last year.

Profit for the period was SEK 54 M (loss: 8) and earnings per share SEK 2.15 (LPS: 0.35). Exchange rate changes reduced the profit by SEK 1 M.

Total assets increased by SEK 71 M to SEK 5,784 M. The increase is mainly attributable to cash and cash equivalents.

Equity increased by SEK 65 M, amounting to SEK 1,597 M. The equity/assets ratio amounted to 28 per cent (28).

Acquisition of non-current assets amounted to SEK 15 M (29). Replacement investments represented SEK 2 M (6), expansion investments SEK 8 M (12), environmental investments SEK 1 M (0) and investments in new construction and additions to properties SEK 2 M (8), while finance leases amounted to SEK 2 M (3).

Operating cash flow amounted to SEK 29 M (30). After acquisition of operations and change in interest-bearing receivables, cash flow amounted to SEK 54 M (56). Net debt decreased by SEK 114 M during the quarter, amounting to SEK 361 M.

Liquidity remains good, and at the end of September a positive bank balance of SEK 209 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 900 M.

The number of employees declined by 58 during the quarter to 3,370 persons.

Items affecting comparability

	Third quarter		Nine months		Oct. 12 -	Full year
Group, SEK M	2013	2012	2013	2012	Sept. 13	2012
Operating profit excl. items affecting comparability Items affecting comparability	96	53	236	192	375	331
- Gain from sale of operation, other	0	0	2	20	6	24
- Structural costs etc.	-20	-31	-27	-54	-58	-85
Operating profit	76	22	211	158	323	270
Profit before tax excl. items affecting comparability Items affecting comparability - Gain from sale of operation, other - Structural costs etc.	93 0 -20	49 0 -31	237 2 -27	179 20 -54	372 6 -58	314 24 -85
Profit before tax	73	18	212	145	320	253

The quarter s structural costs etc. are primarily attributable to Denmark, SEK 11 M, and pertain to staff reductions and revaluation of last year s provision for closure of 3 facilities. The remaining costs are attributable to Sweden and Norway and primarily pertain to staff reductions.

Gain from sale of operation during the first nine months of the year pertains to the sale of a property in Lillehammer, Norway. Structural costs etc., SEK 18 M (excluding revaluation of last year s provision in Denmark by SEK 9 M), pertains to measures to reduce future costs by about SEK 30 M per year, with full effect from 2014.

Group

			Order backlog
No. of new	Third quarter		Nine months		Oct. 12 -	Full year	30 Sept.
cars	2013	2012	2013	2012	Sept. 13	2012	2013	2012
Sweden	5,864	4,797	17,255	17,302	23,682	23,729	4,913	3,852
Norway	1,756	1,596	5,259	5,691	7,178	7,610	1,373	1,119
Denmark	862	703	2,591	2,227	3,581	3,217	657	496
Total	8,482	7,096	25,105	25,220	34,441	34,556	6,943	5,467

		Net turnover					Operating profit/loss excl. items affecting comparability , operating margin
	Third quarter		Nine months			Oct. 12 - Full year		Third quarter				Nine months			Oct. 12 -	Full year
SEK M	2013	2012	2013		2012 Sept. 13	2012	2013	%	2012	%	2013	%	2012	%	Sept. 13	2012	%
Sweden	2,725	2,424	8,416		8,202 11,350 11,136		86	3.1	53	2.2	217	2.6	162	2.0	348	293	2.6
Norway	1,192	1,180	3,644	4,098	4,949	5,403	21	1.8	22	1.9	64	1.8	96	2.3	92	124	2.3
Denmark	237	220	716	825	1,012	1,121	-5	-1.7	-14	-6.5	-15	-2.0	-39	-4.8	-23	-47	-4.2
Total Cars	4,154		3,824 12,776 13,125 17,311 17,660				102	2.5	61	1.6	266	2.1	219	1.7	417	370	2.1
Parent Company, other	1	0	2	3	1	2	-6	-	-8	-	-30	-	-27	-	-42	-39	-
Total	4,155		3,824 12,778 13,128 17,312 17,662				96	2.3	53	1.4	236	1.9	192	1.5	375	331	1.9

Continued strong earnings in Sweden

Order backlog increased during the quarter

The market for new cars increased during the quarter by 5 per cent in Sweden and 1 per cent in Norway, while it decreased by 2 per cent in Denmark.

The Group reported an operating profit, excluding items affecting comparability, of SEK 96 M (53) and an operating margin of 2.3 per cent (1.4) during the quarter. The earnings improvement is mainly attributable to higher turnover in the Service Business. The Car Business also reported improved earnings due to a strong profit in sales of used cars and more new car deliveries. The order backlog increased during the quarter and is 1,476 cars higher compared with last year.

The operation in Sweden reported an operating profit of SEK 86 M (53), with an operating margin of 3.1 per cent (2.2). The Car Business reported a profit that was SEK 15 M better than last year s. The improvement is attributable to higher turnover and a higher gross profit margin on sales of used cars, as well as more new car deliveries. The Service Business developed very positively and reported earnings that were SEK 17 M better compared with last year.

Operating profit in Bilia s Norwegian operation amounted to SEK 21 M (22). The Car Business reported a profit that was SEK 2 M worse than last year. The decrease is mainly attributable to slightly higher costs in new car sales. Sales of used cars continued to develop positively, and earnings were slightly better compared with last year. Earnings in the Service Business improved by SEK 1 M, underlying turnover increased by 5 per cent, while the gross profit margin decreased slightly. BMW s new electric car, i3, has attracted great interest and Bilia has so far received more than 600 customer reservations. The car will be launched in the middle of November.

The Danish operation reported an operating loss of SEK 5 M (loss: 14). The improvement compared with last year is attributable to the Service Business. Turnover declined by 11 per cent due to the extensive structural measures that were implemented last year, when three of eight facilities were closed. However, costs declined considerably more in the Service Business, which reported a profit that was SEK 7 M better compared with last year. The Car Business reported a profit that was SEK 2 M better than last year s, primarily due to higher turnover and a higher gross profit margin in car sales. Altogether, overheads in the Danish operation decreased by SEK 12 M or 23 per cent compared with last year.

The operation divided into Service, Car and Fuel Businesses

• Growth and good earnings in the Service Business
• Strong earnings in the used car business

			Net turnover	1 )			Operating profit, operating margin
	Third quarter		Nine months			Oct. 12 - Full year	Third quarter		Nine months			Oct. 12 - Full year
SEK M	2013	2012	2013		2012 Sept. 13	2012	2013	2012	2013		2012 Sept. 13	2012
Service Business	898	857	2,919	2,884	3,995	3,960	73	48	212	149	331	268
- margin, %							8.1	5.6	7.3	5.2	8.3	6.8
Car Business	3,135	2,825	9,563	9,870	12,926	13,233	25	9	41	61	69	89
- margin, %							0.8	0.3	0.4	0.6	0.5	0.7
Fuel Business	272	301	811	901	1,095	1,185	4	4	13	9	17	13
- margin, %							1.8	1.5	1.7	1.0	1.6	1.1

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

			Third quarter		Nine months
Per cent	Sweden		Norway Denmark	Total	Sweden		Norway Denmark	Total
Change previous year
Underlying turnover	6.2	4.7	-11.3	4.5	3.5	1.3	-15.8	1.5
Calendar effect	-1.5	-1.5	-1.5	-1.5	0.0	1.1	0.5	0.3
Adjusted turnover	4.7	3.2	-12.8	3.0	3.5	2.4	-15.3	1.8

Slightly improved demand, together with initiatives on behalf of older cars, service agreements and add-on sales, resulted in increased turnover in the Service Business during the quarter. The quarter contained one more working day in all countries compared with last year.

The Car Business s deliveries of new cars increased during the quarter for comparable operations by 16 per cent and deliveries of used cars by 4 per cent. Orders received for new cars increased by 10 per cent compared with last year. The order backlog increased by 528 cars during the quarter, amounting to 6,943 cars at the end of September (5,467). The used car business developed very positively and reported a profit that was SEK 14 M better than last year.

Car stocks increased slightly during the quarter, but are still at good levels. The turnover rate for used cars remained at a high level, amounting to 9.5 times per year.

The Fuel Business is concentrated to Sweden, and earnings amounted to SEK 4 M (4).

Acquisition of operation 2013

Operation in Kverneland Bil Drammen AS

On 1 April 2013, Bilia acquired the operation in Kverneland Bil Drammen AS. The operation which Bilia acquired represents Volvo and Ford and has an annual turnover of about SEK 225 M. The number of cars sold annually is around 800. The purchase consideration was SEK 25 M. There is no contingent purchase consideration.

The plan is to move the acquired operation to Bilia s existing facility in Drammen. The merger is expected to generate considerable economies of scale, with full effect from 2014.

Acquisition-related expenses amount to SEK 0.3 M and consist of fees to consultants for due diligence. These expenses have been recognized as administrative expenses in the Statement of Comprehensive Income and Other Comprehensive Income.

Effects of the acquisitions

The acquisition has the following effects on the Group s assets and liabilities.

:

	Carrying amounts in Fair		Fair value
	Kverneland's dealer- value		recognised in
SEK M	ship operation	adjustment	Group
Intangible assets	-	17	17
Property, plant and equipment	1	90	91
Deferred tax asset	-	1	1
Inventories	13	0	13
Cash and cash equivalents	-	-	-
Trade payables and other liabilities	2	94	96
Deferred tax liability	-	1	1
Net identifiable assets and liabilities	12	13	25
Consolidated goodwill			-
Purchase consideration paid, cash			25
Less: Cash and cash equivalents in aquired operation			-
Net effect on cash and cash equivalents			25

Acquired customer relations totalling SEK 17 M are recognized as intangible assets. These customer relations will be amortized over 10 years.

Parent Company

Bilia AB is responsible for the Group s management, strategic planning, purchasing, public relations, business development, accounting and financing. Furthermore, Bilia AB conducts real estate and IT activities, mainly for companies in the Group.

third quarter amounted to SEK 6 M (loss: 8).

Risks and uncertainties

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

The operating risks include:

• Development of the market for new cars.
• 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 2012 Annual Report.

Accounting principles

This interim report in summary for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting 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, with the following exceptions.

The revised IAS 19 Employee benefits applies as from 1 January 2013. As a result of the change, the corridor method is no longer applied. Actuarial gains and losses are recognised in Other comprehensive income with cumulative effect in equity. Return on plan assets is based on the discount rate used to calculate the pension liability and is included in the net profit for the year. The difference between real and calculated return on plan assets is recognised in other comprehensive income. This change entailed a change in accounting policy for Bilia. Changes in accounting policies are applied retrospectively, which means that the 2012 figures have been recalculated in the report for the first quarter of 2013.

Interest-bearing liabilities for the full year 2012 have increased by SEK 175 M, and the effect on equity of previously unrecognised actuarial losses, after special payroll tax and deferred tax have been taken into account, amounts to SEK 167 M, consisting of a reduction in the opening value as of 1 January 2012 by SEK 177 M and a positive earnings effect of SEK 10 M.

Annual General Meeting 2014

The Annual General Meeting will be held on 10 April 2014 Sisjön, Norra Långebergsgatan 3, in Gothenburg. Shareholders who wish to have a matter on the agenda at the AGM should contact Bilia no later than 20 February 2014 in order for the matter to be included in the notice of the meeting.

The annual report for 2013 14 March 2014.

Events after the end of the report period

On 3 October, Bilia in Norway concluded an agreement to acquire a workshop business for BMW in Tønsberg, Norway.

Next report

The year-end report for 2013 will be published on 4 February 2014.

Gothenburg, 25 October 2013 Bilia AB (publ) Board of Directors

For further information, please contact Per Avander, CEO, or Gunnar Blomkvist, CFO, telephone +46 31 709 55 00.

Bilia AB (publ) Box 9003, SE-400 91 Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: +46 31 709 55 00 www.bilia.com Corporate ID No.: 556112-5690

Review report

To the Board of Directors of Bilia AB (publ), Corp. ID no. 556112-5690

Introduction

We have reviewed the interim financial information in summary (the interim report) for Bilia AB (publ) as per 30 September 2013 and the nine-month period that ended on this date. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion regarding this interim financial information based on our review.

Aim and scope of review

We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information 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 aim and is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS 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 matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information has not, in all material respects, been prepared in accordance with IAS 34 and the Annual Reports Act with regard to the Group and in accordance with the Annual Reports Act with regard to the Parent Company.

Gothenburg, 25 October 2013

KPMG AB

Jan Malm Authorised Public Accountant

This report is being published by Bilia AB in compliance with the Securities Market Act. The information was submitted for publication on 25 October 2013 at 08:30 a.m..

Nine months

	Service			Car		Fuel		Total		Segment		Group
										reconciliation
SEK M	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Net turnover
External sales	2,402	2,354	9,563	9,870	811		901 12,776 13,125		2		3 12,778 13,128
Internal sales	517	530					517	530	-517	-530	-	-
Total net turnover	2,919	2,884	9,563	9,870	811		901 13,293 13,655		-515		-527 12,778 13,128
Depreciation/amortisation	50	51	185	204	3	4	238	259	12	11	250	270
Operating profit/loss	212	149	41	61	13	9	266	219	-55	-61	211	158
Interest income											8	7
Interest expenses											36	34
Shares in profits of associated companies			29	14			29	14			29	14
Profit before tax											212	145
Tax expense for the period											-50	-65
Net profit for the period											162	80
Material items of income and expense of a non-re
curring nature recognised in the Income Statement:
Items affecting comparability
- Profit from sale of operation, other	2	12	0	8			2	20			2	20
- Structural costs etc.	-18	-44	-9	-8			-27	-52		-2	-27	-54
Items of non-recurring nature	-16	-32	-9	0	-	-	-25	-32	-	-2	-25	-34
Material items not affecting cash besides
depreciation/amortisation:
- Other	-39	-39	-48	-9	-1	0	-88	-48	-1	-2	-89	-50
Total	-39	-39	-48	-9	-1	0	-88	-48	-1	-2	-89	-50
Assets
Interests in associated companies			342	322			342	322			342	322
Deferred tax assets											85	102
Other assets											5,357	4,960
Total assets			342	322			342	322			5,784	5,384
Investments in non-current assets	35	47	92	96	1	1	128	144	23	17	151	161
Liabilities
Equity											1,597	1,486
Liabilities											4,187	3,898
Total liabilities and equity											5,784	5,384

	external customers	Revenue from		Non-current assets
SEK M	2013	2012	2013	2012
Geographical segments
Sweden	8,420	8,206	2,638	2,689
Norway	3,644	4,098	579	565
Denmark	716	825	79	83
Segment reconciliation	-2	-1	-724	-742
Total		12,778 13,128	2,572	2,595

Group's operating segments con'd.

Nine months
			Service							Car
	Sweden			Norway	Denmark		Sweden			Norway	Denmark
SEK M	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Net turnover
External sales	1,657	1,580	581	578	164	196	5,959	5,756	3,052	3,485	552	629
Internal sales	302	265	166	204	49	61
Total net turnover	1,959	1,845	747	782	213	257	5,959	5,756	3,052	3,485	552	629
Depreciation/amortisation	41	41	6	6	3	4	164	183	18	17	3	4
Operating profit/loss	167	127	40	36	5	-14	36	26	25	60	-20	-25
Shares in profits of associated companies							29	14
Material items of income and expense of a non-re curring nature recognised in the Income Statement: Items affecting comparability
			2	12					0	8
- Profit from sale of operation, other - Structural costs etc.	-7	-9	-3	-4	-8	-31	-2	-4	-3	-3	-4	-1
Items of non-recurring nature	-7	-9	-1	8	-8	-31	-2	-4	-3	5	-4	-1
Material items not affecting cash besides depreciation/amortisation:
- Other	-35	-12	-2	0	-2	-27	-34	-5	0	-1	-14	-3
Total	-35	-12	-2	0	-2	-27	-34	-5	0	-1	-14	-3
Assets
Interests in associated companies							342	322
Investments in non-current assets	22	23	10	23	3	1	77	46	21	33	-6	17

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

	Third quarter		Nine months		Oct. 12 -	Full year
SEK M	2013	2012	2013	2012	Sept. 13	2012
Net turnover	4,155	3,824	12,778	13,128	17,312	17,662
Costs of goods sold	3,511	3,238	10,792	11,167	14,574	14,949
Gross profit	644	586	1,986	1,961	2,738	2,713
Other operating income	2	1	9	24	17	32
Selling expenses	448	435	1,435	1,459	1,940	1,964
Administrative expenses	101	100	320	312	430	422
Other operating expenses	21	30	29	56	62	89
Operating profit 1)	76	22	211	158	323	270
Financial income	3	2	8	7	12	11
Financial expenses	12	10	36	34	49	47
Shares in profits of associated companies	6	4	29	14	34	19
Net financial items	-3	-4	1	-13	-3	-17
Profit before tax	73	18	212	145	320	253
Tax	-19	-26	-50	-65	-82	-97
Net profit/loss for the period	54	-8	162	80	238	156
Other comprehensive income/loss
Items that cannot be reclassified to profit or loss
Revaluation of defined-benefit pension plans	0	0	0	0	7	7
Tax attributable to items that cannot be reclassified
to profit or loss	0	0	0	0	-1	-1
	0	0	0	0	6	6
Items that can be reclassified to profit or loss
Translation differences attributable to foreign
operations	-12	-6	-26	-5	-19	2
Tax attributable to items that have been or may be
reclassified to profit or loss	0	0	0	0	0	0
Other comprehensive income/loss after tax	-12 -12	-6 -6	-26 -26	-5 -5	-19 -13	2 8
Comprehensive income/loss for the period	42	-14	136	75	225	164
Net profit/loss for the year attributable to:
Parent Company's shareholders	54	-8	162	80	238	156
Comprehensive income/loss for the year
attributable to:
Parent Company's shareholders	42	-14	136	75	225	164
Number of shares at end of period, '000:
- before dilution	24,841	24,547	24,841	24,547	24,841	24,658
- after dilution	25,168	24,897	25,168	24,897	25,168	25,003
Basic earnings/loss per share, SEK	2.10	-0.30	6.50	3.25	9.55	6.30
Diluted earnings/loss per share, SEK	2.10	-0.30	6.45	3.20	9.50	6.25
Number of own shares at end of period, '000	291	562	291	562	291	456
Weighted average number of shares, '000:
- before dilution	24,685	24,663	24,673	24,808	24,646	24,748
- after dilution	25,015	25,015	25,007	25,170	24,984	25,106
Basic earnings/loss per share, SEK	2.15	-0.35	6.55	3.20	9.65	6.30
Diluted earnings/loss per share, SEK	2.10	-0.35	6.45	3.15	9.50	6.20
Weighted average number of own shares, '000	444	444	452	289	476	354
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	9	9	2 9	2 8	3 8	3 7
- Land and buildings	3	2	8	6	1 2	1 0
- Equipment, tools, fixtures and fittings - Leased vehicles	1 6 4 9	1 7 6 2	5 0 163	5 5 181	6 7 231	7 2 249
Total	7 7	9 0	250	270	348	368

Consolidated Statement of Financial Position, Summary

SEK M	30/9 2013	31/12 2012	30/9 2012
Assets
Non-current assets
Intangible assets
Intellectual property	198	214	202
Goodwill	260	281	267
	458	495	469
Property, plant and equipment
Land and buildings Construction in progress	95 8	119 2	122 0
Equipment, tools, fixtures and fittings	290	308	288
Leased vehicles 1)	1,325	1,339	1,316
	1,718	1,768	1,726
Long-term investments
Financial investments	356	331	335
Non-current receivables 2)	40	52	65
	396	383	400
Deferred tax assets	85	81	102
Total non-current assets	2,657	2,727	2,697
Current assets
Inventories, merchandise	1,993	2,084	1,770
Current receivables
Other receivables 1)	865	969	875
Cash and cash equivalents 2)	269	62	42
Total current assets	3,127	3,115	2,687
Total assets	5,784	5,842	5,384
Equity and liabilities
Equity
Share capital	251	251	251
Other contributed capital	47	47	46
Reserves	-48 1,347	-22 1,310	-29 1,218
Retained earnings including net profit for the year Total equity	1,597	1,586	1,486
Non-current liabilities
Debenture loan 3)	28	28	28
Interest-bearing liabilities 3)	133	97	91
Other liabilities and provisions 4)	1,422	1,390	1,481
	1,583	1,515	1,600
Current liabilities
Interest-bearing liabilities 3)	154	199	135
Other liabilities and provisions	2,450	2,542	2,163
	2,604	2,741	2,298
Total equity and liabilities	5,784	5,842	5,384
Assets
1) Of which interest-bearing	211	196	210
2) Interest-bearing	309	114	107
Liabilities
3) Interest-bearing	315	324	254
4) Of which interest-bearing	566	556	568

Statement of Changes in Group Equity, Summary

Statement of Changes in Group Equity, Summary

SEK M	30/9 2013	31/12 2012	30/9 2012
Opening balance	1,586	1,813	1,813
Effect of change of accounting policy, IAS 19	-	-177	-177
Adjusted opening balance	1,586	1,636	1,636
Cash dividend to shareholders	-148	-238	-238
Exercised warrants	0	1	0
Acquisitions with own shares	-	73	63
Divestment of own shares	23	-	-
Buy-back of own shares	-	-50	-50
Comprehensive income for the period	136	164	75

Consolidated Statement of Cash Flows

	Third quarter		Nine months		Oct. 12 -	Full year
SEK M	2013	2012	2013	2012	Sept. 13	2012
Operating activities
Profit before tax	73	18	212	145	320	253
Depreciation/amortisation and impairment losses	77	90	250	270	348	368
Other items not affecting cash	44	62	-4	72	24	100
Tax paid	-20	-22	-34	-46	-72	-84
Change in inventories	-111	153	5	469	-239	225
Change in operating receivables	-16	26	71	93	10	32
Change in operating liabilities	-15	-230	-93	-383	112	-178
Cash flow from operating activities	32	97	407	620	503	716
Investing activities
Acquisitions of non-current assets (intangible and property,
plant and equipment)	-15	-29	-70	-105	-120	-155
Disposal of non-current assets (intangible and property,
plant and equipment)	1	4	1	7	20	26
Acquisitions and disposals of leased vehicles	11	-42	-81	-56	-166	-141
Operating cash flow	29	30	257	466	237	446
Acquisition of financial assets	0	4	0	-17	9	-8
Disposal of financial assets	-2	0	11	2	16	7
Acquisition of subsidiary/operation, net	0	-6	-25	-204	-41	-220
Disposal of subsidiary/operation, net	27	28	37	28	37	28
Cash flow after net investments	54	56	280	275	258	253
Financing activities
Borrowings	0	150	0	375	0	375
Repayment of loans	0	-150	0	-375	0	-375
Change in overdraft facility	55	-51	52	-111	85	-78
Exercised warrants	0	0	0	0	1	1
Acquisitions with own shares	0	0	0	63	10	73
Divestment of own shares	23	0	23	0	23	0
Buy-back of own shares	0	-18	0	-50	0	-50
Dividend paid to Parent Company's shareholders	0	0	-148	-238	-148	-238
Cash flow from financing activities	78	-69	-73	-336	-29	-292
Change in cash and cash equivalents, excl. translation
differences	132	-13	207	-61	229	-39
Exchange difference in cash and cash equivalents	2	1	0	6	-2	4
Change in cash and cash equivalents	134	-12	207	-55	227	-35
Cash and cash equivalents at start of period	135	54	62	97	42	97
Cash and cash equivalents at end of period	269	42	269	42	269	62

Fair value of financial instruments

The carrying amount of financial instruments corresponds to the fair value, with the exception of debenture loans. The fair value of debenture loans amounts to SEK 29 M.

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 measured at fair value through profit or loss amounting to SEK 0 M, and those that belong to financial liabilities measured at fair value through profit or loss amounting to SEK 1 M, belong to valuation level 2.

Calculation of fair value

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.

Quarterly review

Group	4/11	1/12	2/12	3/12	4/12	1/13	2/13	3/13
Net turnover, SEK M	4,780	4,562	4,742	3,824	4,534	4,048	4,575	4,155
Operating profit excl. items affecting
comparability, SEK M	154	77	62	53	139	45	95	96
Operating margin excl. items affecting
comparability, %	3.2	1.7	1.3	1.4	3.0	1.1	2.1	2.3
Operating profit, SEK M	154	77	59	22	112	45	90	76
Operating margin, %	3.2	1.7	1.3	0.6	2.5	1.1	2.0	1.8
Profit before tax, SEK M	146	73	54	18	108	54	85	73
Profit/loss for the period, SEK M	99	50	38	-8	76	44	64	54
Rate of capital turnover, times 1)	3.41	3.35	3.28	3.22	3.12	3.04	3.03	3.07
Return on capital employed, % 1)	20.3	19.4	16.5	13.9	12.3	11.6	13.0	15.3
Return on equity, % 1)	23.6	22.8	15.0	10.8	9.1	9.4	11.4	15.2
Net debt/equity, times	0.18	0.19	0.36	0.34	0.36	0.30	0.31	0.23
Equity/assets ratio, %	33	30	27	28	27	30	27	28
Interest coverage ratio, times 1)	9.4	9.1	8.1	6.8	6.4	5.9	6.6	7.5
Data per share (SEK)
Earnings/loss for the period	4.00 2 )	2.05 4 )	1.50 6 )	-0.35 8 )	3.10 10)	1.80 12)	2.60 14)	2.15 16)
Equity	74 3 )	70 5 )	61 7 )	61 9 )	64 11)	65 13)	62 15)	64 17)
Operating cash flow	0.95 2 )	14.35 4 )	3.20 6 )	1.25 8 )	-0.75 10)	3.65 12)	5.55 14)	1.20 16)

1 ) Rolling 12 months.

• 2 ) Based on weighted average number of shares outstanding during fourth quarter, 24,563,301.
• 3 ) Based on number of shares outstanding at 31 December 2011, 24,565,028.
• 4 ) Based on weighted average number of shares outstanding during first quarter, 24,749,835.
• 5 ) Based on number of shares outstanding at 31 March 2012, 25,089,165.
• 6 ) Based on weighted average number of shares outstanding during second quarter, 25,013,960.
• 7 ) Based on number of shares outstanding at 30 June 2012, 24,752,901.
• 8 ) Based on weighted average number of shares outstanding during third quarter, 24,663,161.
• 9 ) Based on number of shares outstanding at 30 September 2012, 24,546,644.
• 10) Based on weighted average number of shares outstanding during fourth quarter, 24,566,868.
• 11) Based on number of shares outstanding at 31 December 2012, 24,657,606.
• 12) Based on weighted average number of shares outstanding during first quarter, 24,662,698.
• 13) Based on number of shares outstanding at 31 March 2013, 24,667,096.
• 14) Based on weighted average number of shares outstanding during second quarter, 24,670,763.
• 15) Based on number of shares outstanding at 30 June 2013, 24,671,552.
• 16) Based on weighted average number of shares outstanding during third quarter, 24,684,972.
• 17) Based on number of shares outstanding at 30 September 2013, 24,841,194.

Income Statement for Parent Company

	Third quarter		Nine month		Oct. 12 -	Full year
SEK M	2013	2012	2013	2012	Sept. 13	2012
Net turnover	101	96	298	293	386	381
Administrative expenses	107	104	330	321	431	422
Operating loss 1)	-6	-8	-32	-28	-45	-41
Result from financial items
Income from interests in Group companies	0	2	0	2	229	231
Interest income from Group companies	5	7	18	26	24	32
Other interest income and similar line items	2	1	5	3	7	5
Interest expenses to Group companies	0	0	0	2	0	2
Interest expenses and similar line items	4	2	13	6	16	9
Profit/loss after financial items	-3	0	-22	-5	199	216
Appropriations	0	0	0	0	-48	-48
Profit/loss before tax	-3	0	-22	-5	151	168
Tax	-1	0	1	0	-56	-57
Net profit/loss for the period	-4	0	-21	-5	95	111
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	2	2	9	8	1 3	1 2
- Equipment, tools, fixtures and fittings	1	1	2	1	2	1

Balance Sheet for Parent Company, Summary

SEK M	30/9 2013	31/12 2012	30/9 2012
Assets
Non-current assets
Intangible assets
Intellectual property	47	43	43
	47	43	43
Property, plant and equipment
Buildings	8	3	3
Construction in progress	4	2	-
Equipment, tools, fixtures and fittings	8	8	7
	20	13	10
Long-term investments
Interests in Group companies	724	724	743
Other securities held as non-current assets	0	0	0
Other non-current receivables	25	25	29
Deferred tax asset	24	20	22
	773	769	794
Total non-current assets	840	825	847
Current assets Current receivables
Receivables from Group companies	17	716	50
Other receivables	106	95	115
Cash and bank balances	416	0	333
Total current assets	539	811	498
Total assets	1,379	1,636	1,345
Equity and liabilities Equity Restricted equity
Share capital	251	251	251
Statutory reserve	47	47	47
	298	298	298
Non-restricted equity
Share premium reserve	47	47	46
Retained earnings including net profit for the year	620	765	639
	667	812	685
Total equity	965	1,110	983
Untaxed reserves	227	227	179
Provisions
Provisions for pensions and similar obligations	19	17	17
Deferred tax liability	0	0	0
	19	17	17
Non-current liabilities
Debenture loan	28	28	28
Other liabilities	5	5	5
	33	33	33
Current liabilities
Liabilities to credit institutes	-	55	-
Liabilities to Group companies	-	29	0
Other liabilities	135	165	133
	135	249	133
Total equity and liabilities	1,379	1,636	1,345
Pledged assets and contingent liabilities for Parent Company
Pledged assets	447	447	447
Contingent liabilities	1,191	1,153	930