Bilia — Interim / Quarterly Report 2013

Jul 25, 2013

Everything to do with our finances. And then some.

Report for the first six months of 2013

Report for the first six months of 2013

First six months

• Net turnover amounted to SEK 8,623 M (9,304).
• Net profit for the period was SEK 108 M (88) and earnings per share SEK 4.40 (3.55).

Second quarter

• Net turnover amounted to SEK 4,575 M (4,742).
• Operating profit excluding items affecting profitability amounted to SEK 95 M (62).
• Net profit for the period was SEK 64 M (38) and earnings per share SEK 2.60 (1.50).
• Operating cash flow amounted to SEK 138 M (81).

In a comment on the second says:

Demand for cars and service was on a level with the first quarter, but slightly better compared with last year. The Service Business developed positively and reported earnings that were considerably better compared with last year. Fewer deliveries of new cars were offset by strong earnings from sales of used cars. Orders received for new cars were, however, higher than last year, and the order backlog remained at a high level. We reported a good cash flow, and the Group s financial position is still 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 third quarter of 2013 will be slightly better compared with the same quarter last year.

	Second quarter		First six months		July 12 -	Full year
Group	2013	2012	2013	2012	June 13	2012
Net turnover, SEK M	4,575	4,742	8,623	9,304	16,981	17,662
Operating profit excl. items affecting
comparability, SEK M 1 )	95	62	140	139	332	331
Operating margin excl. items affecting
comparability, %	2.1	1.3	1.6	1.5	2.0	1.9
Operating profit, SEK M	90	59	135	136	269	270
Operating margin, %	2.0	1.3	1.6	1.5	1.6	1.5
Profit before tax excl. items affecting
comparability, SEK M 1 )	90	57	144	130	328	314
Profit before tax, SEK M	85	54	139	127	265	253
Net profit for the period / year, SEK M	64	38	108	88	176	156
Earnings/loss per share, SEK 2)	2.60	1.50	4.40	3.55	7.15	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

• Bilia in Norway acquired Kverneland s operation in Drammen. At the same time, Kverneland acquired Bilia s operation in Bryne. The net purchase consideration amounted to around SEK 15 M. Kverneland s operation in Drammen reported a turnover of about SEK 225 M in 2012, while turnover in Bilia s operation in Bryne amounted to about SEK 115 M. The operation was acquired on the 1st of April.
• During the year up to and including the 30th of June, 13,946 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 June was 331,210.

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

Second quarter 2013

Demand for cars and service was slightly better compared with the same quarter last year and on a level with the first quarter of this year.

Net turnover amounted to SEK 4,575 M (4,742). For comparable operations and adjusted for exchange rate changes, net turnover decreased by about SEK 120 M or 3 per cent. The decrease is attributable to lower sales of new cars.

Operating profit amounted to SEK 90 M (59). If items affecting comparability are excluded, the profit was SEK 95 M (62). The improvement is attributable to the Service Business, which reported much better earnings due to higher turnover and lower costs. Fewer deliveries of new cars was offset by strong earnings from sales of used cars. Underlying overheads decreased by 1 per cent compared with last year and amounted to 13.4 per cent of net turnover, which was 0.2 percentage points higher compared with last year.

Net financial items amounted to SEK -5 M (-5).

Tax for the period amounted to SEK -21 M (-16). The tax corresponds to a tax rate of 26 per cent (33) if the tax-free portion of the earnings of the associated companies is excluded. No tax asset has been recognised for the deficits in Denmark.

Net profit for the period was SEK 64 M (38) and earnings per share SEK 2.60 (1.50). Exchange rate changes reduced the profit by SEK 1 M.

Total assets increased during the quarter by SEK 281 M to SEK 5,713 M. The increase is mainly attributable to new and used cars in stock, cash and cash equivalents and the acquisition of Kverneland s operation in Drammen.

Equity decreased during the quarter by SEK 83 M, amounting to SEK 1,532 M. Dividends amounting to SEK 148 M were paid to shareholders. The equity/assets ratio amounted to 27 per cent (27).

Acquisition of non-current assets amounted to SEK 22 M (30). Replacement investments represented SEK 7 M (5), expansion investments SEK 13 M (15), environmental investments SEK 0 M (0), investments in new construction and additions to properties SEK 0 M (10), and finance leases SEK 2 M (0).

Operating cash flow amounted to SEK 138 M (81). After acquisition of operations and change in interest-bearing receivables, cash flow amounted to SEK 127 M (60). Net debt decreased by SEK 7 M during the quarter, amounting to SEK 475 M.

Liquidity remains good, and at the end of June a positive bank balance of SEK 65 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 900 M.

The number of employees increased by 14 during the quarter and amounted to 3,428 persons. Acquisitions of operations have increased the number of employees by 20.

First six months of 2013

Net turnover amounted to SEK 8,623 M (9,304). For comparable operations and adjusted for exchange rate changes, net turnover decreased by about SEK 600 M or 7 per cent. The decrease is mainly attributable to lower sales of new cars.

Operating profit amounted to SEK 135 M (136). If items affecting comparability are excluded, the profit was SEK 140 M (139). Earnings in the Service Business improved by SEK 38 M, mainly due to lower costs. Earnings in the Car Business declined by SEK 36 M, mainly due to fewer deliveries of new cars. Underlying overheads decreased by 2 per cent compared with last year and amounted to 14.0 per cent of net turnover, which was 0.7 percentage points higher compared with last year.

Net financial items amounted to SEK 4 M (-9). The improvement is attributable to higher earnings from associated companies, SEK 23 M (10). A change in the Swedish income tax rate to 22 per cent explains the higher earnings from associated companies.

Tax for the period amounted to SEK -31 M (-39). The tax corresponds to a tax rate of 27 per cent (33) if the tax-free portion of the earnings of the associated companies is excluded. No tax asset has been recognised for the deficits in Denmark.

Net profit for the period was SEK 108 M (88) and earnings per share SEK 4.40 (3.55). Exchange rate changes reduced the profit by SEK 1 M.

Acquisition of non-current assets amounted to SEK 55 M (76). Replacement investments represented SEK 19 M (16), expansion investments SEK 19 M (19), environmental investments SEK 0 M (0), investments in new construction and additions to properties SEK 11 M (39), and finance leases SEK 6 M (2).

Operating cash flow amounted to SEK 228 M (436). After acquisition of operations and change in interest-bearing receivables, cash flow amounted to SEK 226 M (219). Net debt decreased by SEK 95 M during the first six months, amounting to SEK 475 M.

Items affecting comparability

	Second quarter		First six months		July 12 -	Full year
Group, SEK M	2013	2012	2013	2012	June 13	2012
Operating profit excl. items affecting
comparability	95	62	140	139	332	331
Items affecting comparability
- Gain from sale of operation, other	2	20	2	20	6	24
- Structural costs etc.	-7	-23	-7	-23	-69	-85
Operating profit	90	59	135	136	269	270
Profit before tax excl. items affecting
comparability	90	57	144	130	328	314
Items affecting comparability
- Gain from sale of operation, other	2	20	2	20	6	24
- Structural costs etc.	-7	-23	-7	-23	-69	-85
Profit before tax	85	54	139	127	265	253

Gain from sale of operation pertains to the sale of a property in Lillehammer, Norway.

Structural costs pertain to measures to reduce future costs in Sweden and Denmark by about SEK 10 M per year, with full effect from 2014.

Group

			Order backlog
No. of new	Second quarter		First six months		July 12 -		30 June
cars	2013	2012	2013	2012	June 13	Full year 2012	2013	2012
Sweden Norway	6,182 1,976	6,515 2,085	11,391 3,503	12,505 4,095	22,615 7,018	23,729 7,610	4,477 1,335	2,937 1,092
Denmark	1,024	816	1,729	1,524	3,422	3,217	603	524
Total	9,182	9,416	16,623	18,124	33,055	34,556	6,415	4,553

		Net turnover					Operating profit/loss excl. items affecting comparability , operating margin
	Second quarter		First six months			July 12 - Full year		Second quarter				First six months			July 12 -	Full year
SEK M	2013	2012	2013		2012 June 13	2012	2013	%	2012	%	2013	%	2012	%	June 13	2012	%
Sweden	3,008	2,965	5,691		5,778 11,049 11,136		79	2.6	47	1.6	131	2.3	109	1.9	315	293	2.6
Norway	1,281	1,462	2,452	2,918	4,937	5,403	29	2.3	35	2.4	43	1.8	74	2.5	93	124	2.3
Denmark	286	313	479	605	995	1,121	-2	-1.1	-11	-3.3	-10	-2.2	-25	-4.1	-32	-47	-4.2
Total Cars	4,575	4,740	8,622		9,301 16,981 17,660		106	2.3	71	1.5	164	1.9	158	1.7	376	370	2.1
Parent Company, other	0	2	1		3 0	2	-11	-	-9	-	-24	-	-19	-	-44	-39	-
Total	4,575	4,742	8,623		9,304 16,981 17,662		95	2.1	62	1.3	140	1.6	139	1.5	332	331	1.9

• Strong earnings in Sweden
• Big order backlog

The market for new cars increased during the quarter by 7 per cent in Norway and by 12 per cent in Denmark, while it decreased in Sweden by 2 per cent.

The Group reported an operating profit, excluding items affecting comparability, of SEK 95 M (62) and an operating margin of 2.1 per cent (1.3) during the quarter. The improvement is attributable to higher turnover and lower costs in the Service Business. The order backlog is 1,862 cars higher compared with last year.

The operation in Sweden reported an operating profit of SEK 79 M (47), with an operating margin of 2.6 per cent (1.6). The Car Business reported a profit that was SEK 9 M better than last year s. The improvement is attributable to higher turnover and a higher gross profit margin on sales of used cars. The Service Business developed very positively and reported earnings that were considerably better compared with last year. Turnover in the Service Business increased by 9 per cent, 6 per cent adjusted for acquisitions, while costs were on a par with last year.

Operating profit in Bilia s Norwegian operation amounted to SEK 29 M (35). The Car Business reported a profit that was SEK 14 M lower than last year. The decrease is attributable to fewer deliveries of cars and a slightly lower gross profit margin. The Service Business reported a profit that was SEK 9 M better than last year s. The highly successful concept of personal service technicians in Sweden was introduced last year, leading initially to both higher costs and lower efficiency. The Service Business developed positively during the quarter, and the cost level and efficiency improved.

The Danish operation reported an operating loss of SEK 2 M (loss: 11). The improvement compared with last year is attributable to the Service Business. Demand for workshop services improved slightly compared with the first quarter of the year. Turnover nevertheless declined by 13 per cent due to the extensive structural measures that were implemented last year, when three of eight facilities were closed. The Car Business reported slightly better earnings compared with last year. Altogether, overheads in the Danish operation decreased by SEK 10 M or 20 per cent compared with last year.

			Net turnover	1 )			Operating profit, operating margin
	Second quarter		First six months			July 12 - Full year	Second quarter		First six months			July 12 - Full year
SEK M	2013	2012	2013	2012	June 13	2012	2013	2012	2013	2012	June 13	2012
Service Business	1,037	997	2,021	2,027	3,954	3,960	74	37	139	101	306	268
- margin, %							7.1	3.7	6.9	5.0	7.7	6.8
Car Business	3,449	3,610	6,428	7,045	12,616	13,233	29	32	16	52	53	89
- margin, %							0.8	0.9	0.3	0.7	0.4	0.7
Fuel Business	274	312	539	600	1,124	1,185	3	2	9	5	17	13
- margin, %							0.9	0.5	1.6	0.8	1.5	1.1

Cars divided into Service, Car and Fuel Businesses

Service includes workshop services, spare parts and accessories in the car operation.

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

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

• Earnings in the Service Business doubled
• Better earnings in the used car business

The Service Business s sales for comparable operations and adjusted for exchange rate changes increased by 4 per cent. Sweden s sales increased by 6 per cent and Norway s by 6 per cent, while Denmark s decreased by 13 per cent. The quarter included one more working day in Sweden and Norway and two more working days in Denmark. This calendar effect accounts for an increase in turnover of about 2 per cent. Adjusted for this effect, the Group s turnover increased by just over 2 per cent.

The Car Business s deliveries of new cars declined during the quarter by 4 per cent for comparable operations, while deliveries of used cars increased by 7 per cent. Orders received for new cars increased by 9 per cent compared with last year. The order backlog decreased by 152 cars during the quarter, amounting to 6,415 cars at the end of June (4,553). The used car business developed positively and reported a higher profit than last year.

Stocks of new unsold cars and used cars increased slightly during the quarter but are still at good levels. The turnover rate for used cars remained at a high level, amounting to nearly 10 times per year.

The Fuel Business is concentrated to Sweden, and earnings improved by SEK 1 M to SEK 3 M. The improvement is attributable to a higher gross profit margin.

All values in the above graphs pertain to isolated quarters.

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

public relations and business development. Furthermore, Bilia AB conducts training, real estate and IT activities, mainly for companies in the Group.

second quarter amounted to SEK 11 M (loss: 10).

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.

Events after the end of the report period

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

Audit

This interim report has not been subjected to special examination by the auditors.

Next report

The interim report for the third quarter of 2013 will be published on 25 October 2013 at 8:30 a.m..

This interim pa activities, financial position and results of operations while describing significant risks and uncertainties faced by the Parent Company and the companies included in the Group.

Gothenburg, 25 July 2013

Mats Qviberg Chairman

Jan Pettersson Ingrid Jonasson Blank Anna Engebretsen Deputy chairman Board member Board member

Jack Forsgren Fredrik Grevelius Mats Holgerson Board member Board member Board member

Svante Paulsson Jon Risfelt Patrik Nordvall Board member Board member Board member appointed by employee organisation

Tommy Strandhäll Per Avander

Board member appointed Managing Director, CEO by employee organisation and Board member

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

For further information, please contact Per Avander, Managing Director and 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

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

	First six months

	Service		Car		Fuel		Total		Segment		Group
								Cars		reconciliation
SEK M	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012	2013	2012
Net turnover
External sales	1,655	1,656	6,428	7,045	539	600	8,622	9,301	1	3	8,623	9,304
Internal sales	366	371	0	0			366	371	-366	-371	-	-
Total net turnover	2,021	2,027	6,428	7,045	539	600	8,988	9,672	-365	-368	8,623	9,304
Depreciation/amortisation	35	34	126	136	3	3	164	173	9	7	173	180
Operating profit/loss	139	101	16	52	9	5	164	158	-29	-22	135	136
Interest income											5	5
Interest expenses											24	24
Shares in profits of associated companies			23	10			23	10			23	10
Profit before tax											139	127
Tax expense for the period											-31	-39
Net profit for the period											108	88
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		8			2	20			2	20
- Structural costs etc.	-6	-14	-1	-7			-7	-21		-2	-7	-23
Items of non-recurring nature	-4	-2	-1	1	-	-	-5	-1	-	-2	-5	-3
Material items not affecting cash besides depreciation/amortisation:
- Other	-18	-7	-36	-5	0	0	-54	-12	-1	-1	-55	-13
Total	-18	-7	-36	-5	0	0	-54	-12	-1	-1	-55	-13
Assets
Interests in associated companies			336	318			336	318			336	318
Deferred tax assets											84	113
Other assets											5,293	5,227
Total assets			336	318			336	318			5,713	5,658
Investments in non-current assets	26	29	100	46	0	1	126	76	21	14	147	90
Liabilities
Equity											1,532	1,518
Liabilities											4,181	4,140
Total liabilities and equity											5,713	5,658

	external customers	Revenue from		Non-current assets
SEK M	2013	2012	2013	2012
Geographical segments Sweden Norway Denmark	5,693 2,452 479	5,781 2,918 605	2,698 629 87	2,700 576 90
Segment reconciliation	-1	0	-724	-742
Total	8,623	9,304	2,690	2,624

Group's operating segments con'd.

First six 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	1,142	1,113	401	406	112	137	4,021	4,089	2,040	2,488	367	468
Internal sales	223	180	112	146	31	45
Total net turnover	1,365	1,293	513	552	143	182	4,021	4,089	2,040	2,488	367	468
Depreciation/amortisation	29	27	4	4	2	3	112	121	12	12	2	3
Operating profit/loss	108	85	28	25	3	-9	14	19	15	49	-13	-16
Shares in profits of associated companies							23	10
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 - Structural costs etc.	-5	-9	2	12 -4	-1	-1	-1	-4	0	8 -3	0	0
Items of non-recurring nature	-5	-9	2	8	-1	-1	-1	-4	0	5	0	0
Material items not affecting cash besides depreciation/amortisation: - Other	-16	-6	-1	-1	-1	0	-15	-4	-1	0	-20	-1
Total	-16	-6	-1	-1	-1	0	-15	-4	-1	0	-20	-1
Assets Interests in associated companies							336	318
Investments in non-current assets	13	10	12	18	1	1	112	4	1	26	-13	16

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

	Second quarter		First six months		July 12 -	Full year
SEK M	2013	2012	2013	2012	June 13	2012
Net turnover	4,575	4,742	8,623	9,304	16,981	17,662
	3,868	4,055	7,281	7,929	14,301	14,949
Costs of goods sold Gross profit	707	687	1,342	1,375	2,680	2,713
Other operating income	3	21	7	23	16	32
Selling expenses	505	516	987	1,024	1,927	1,964
Administrative expenses	108	109	219	212	429	422
	7	24	8	26	71	89
Other operating expenses
Operating profit 1)	90	59	135	136	269	270
Financial income	2	2	5	5	11	11
Financial expenses	11	12	24	24	47	47
Shares in profits of associated companies	4	5	23	10	32	19
Net financial items	-5	-5	4	-9	-4	-17
Profit before tax	85	54	139	127	265	253
Tax	-21	-16	-31	-39	-89	-97
Net profit for the period	64	38	108	88	176	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	1	-1	-14	1	-13	2
Tax attributable to items that have been or may be
reclassified to profit or loss	0	0	0	0	0	0
	1	-1	-14	1	-13	2
Other comprehensive income/loss after tax	1	-1	-14	1	-7	8
Comprehensive income for the period	65	37	94	89	169	164
Net profit for the year attributable to:
Parent Company's shareholders	64	38	108	88	176	156
Comprehensive income for the year
attributable to:
Parent Company's shareholders	65	37	94	89	169	164
Number of shares at end of period, '000:
- before dilution	24,672	24,753	24,672	24,753	24,672	24,658
- after dilution	25,003	25,106	25,003	25,106	25,003	25,003
Basic earnings/loss per share, SEK	2.60	1.50	4.40	3.55	7.15	6.30
Diluted earnings/loss per share, SEK	2.55	1.50	4.35	3.50	7.10	6.25
Number of own shares at end of period, '000	456	353	456	353	456	456
Weighted average number of shares, '000:
- before dilution	24,671	25,014	24,667	24,882	24,641	24,748
- after dilution	25,003	25,372	25,003	25,249	24,983	25,106
Basic earnings/loss per share, SEK	2.60	1.50	4.40	3.55	7.15	6.30
Diluted earnings/loss per share, SEK	2.55	1.45	4.35	3.50	7.05	6.20
Weighted average number of own shares, '000	456	88	456	211	476	354
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	1 0	1 0	2 0	1 9	3 8	3 7
- Land and buildings	3	2	5	4	1 1	1 0
- Equipment, tools, fixtures and fittings	1 7	1 9	3 4	3 8	6 8	7 2
- Leased vehicles	5 9	5 6	114	119	244	249
Total	8 9	8 7	173	180	361	368

Consolidated Statement of Financial Position, Summary

SEK M	30/6 2013	31/12 2012	30/6 2012
Assets
Non-current assets
Intangible assets
Intellectual property	220	214	206
Goodwill	275	281	269
	495	495	475
Property, plant and equipment
Land and buildings	97	119	124
Construction in progress	6	2	0
Equipment, tools, fixtures and fittings	304	308	284
Leased vehicles 1)	1,395	1,339	1,340
	1,802	1,768	1,748
Long-term investments
Financial investments	350	331	331
Non-current receivables 2)	43	52	70
Deferred tax assets	393	383	401
Total non-current assets	84 2,774	81 2,727	113 2,737
Current assets
Inventories, merchandise	1,938	2,084	1,940
Current receivables
Other receivables 1)	866	969	927
Cash and cash equivalents 2)	135	62	54
Total current assets	2,939	3,115	2,921
Total assets	5,713	5,842	5,658
Equity and liabilities
Equity
Share capital	251	251	251
Other contributed capital	47	47	46
Reserves	-36	-22	-23
Retained earnings including net profit for the year	1,270	1,310	1,244
Total equity	1,532	1,586	1,518
Non-current liabilities
Debenture loan 3)	28	28	28
Interest-bearing liabilities 3)	113	97	84
Other liabilities and provisions 4)	1,425	1,390	1,514
	1,566	1,515	1,626
Current liabilities
Interest-bearing liabilities 3)	144	199	198
Other liabilities and provisions	2,471	2,542	2,316
	2,615	2,741	2,514
Total equity and liabilities	5,713	5,842	5,658
Assets
1) Of which interest-bearing	192	196	197
2) Interest-bearing	178	114	124
Liabilities
3) Interest-bearing	285	324	310
4) Of which interest-bearing	560	556	562

Statement of Changes in Group Equity, Summary

SEK M	30/6 2013	31/12 2012	30/6 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
Buy-back of own shares	-	-50	-32
Comprehensive income for the period	94	164	89
Closing balance	1,532	1,586	1,518

Consolidated Statement of Cash Flows

	Second quarter		First six months		July 12 -	Full year
SEK M	2013	2012	2013	2012	June 13	2012
Operating activities
Profit before tax	85	54	139	127	265	253
Depreciation/amortisation and impairment losses	89	87	173	180	361	368
Other items not affecting cash	-15	20	-48	10	42	100
Tax paid	-24	-18	-14	-24	-74	-84
	-88	140	116	316	25	225
Change in inventories Change in operating receivables	-19	-42	87	67	52	32
Change in operating liabilities	223	-89	-78	-153	-103	-178
Cash flow from operating activities	251	152	375	523	568	716
Investing activities
Acquisitions of non-current assets (intangible and property,
plant and equipment)	-22	-30	-55	-76	-134	-155
Disposal of non-current assets (intangible and property,
plant and equipment)	0	2	0	3	23	26
Acquisitions and disposals of leased vehicles	-91	-43	-92	-14	-219	-141
Operating cash flow	138	81	228	436	238	446
Acquisition of financial assets	0	-21	0	-21	13	-8
Disposal of financial assets	4	0	13	2	18	7
Acquisition of subsidiary/operation, net	-25	0	-25	-198	-47	-220
Disposal of subsidiary/operation, net	10	0	10	0	38	28
Cash flow after net investments	127	60	226	219	260	253
Financing activities
Borrowings	0	225	0	225	150	375
Repayment of loans	0	-225	0	-225	-150	-375
Change in overdraft facility	65	81	-3	-60	-21	-78
Exercised warrants	0	0	0	0	1	1
Acquisitions with own shares	0	0	0	63	10	73
Buy-back of own shares	0	-32	0	-32	-18	-50
Dividend paid to Parent Company's shareholders	-148	-238	-148	-238	-148	-238
Cash flow from financing activities	-83	-189	-151	-267	-176	-292
Change in cash and cash equivalents, excl. translation differences	44	-129	75	-48	84	-39
Exchange difference in cash and cash equivalents	-1	0	-2	5	-3	4
Change in cash and cash equivalents	43	-129	73	-43	81	-35
Cash and cash equivalents at start of period	92	183	62	97	54	97
Cash and cash equivalents at end of period	135	54	135	54	135	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	3/11	4/11	1/12	2/12	3/12	4/12	1/13	2/13
Net turnover, SEK M	4,179	4,780	4,562	4,742	3,824	4,534	4,048	4,575
Operating profit excl. items affecting
comparability, SEK M	105	154	77	62	54	138	45	95
Operating margin excl. items affecting
comparability, %	2.5	3.2	1.7	1.3	1.4	3.0	1.1	2.1
Operating profit, SEK M	96	154	77	59	23	111	45	90
Operating margin, %	2.3	3.2	1.7	1.3	0.6	2.5	1.1	2.0
Profit before tax, SEK M	91	146	73	54	18	108	54	85
Profit/loss for the period, SEK M	68	99	50	38	-8	76	44	64
Rate of capital turnover, times 1)	3.49	3.41	3.35	3.28	3.22	3.12	3.04	3.03
Return on capital employed, % 1)	21.8	20.3	19.4	16.5	13.9	12.3	11.6	13.0
Return on equity, % 1)	29.1	23.6	22.8	15.0	10.8	9.1	9.4	11.4
Net debt/equity, times	0.19	0.18	0.19	0.36	0.34	0.36	0.30	0.31
Equity/assets ratio, %	32	33	30	27	28	27	30	27
Interest coverage ratio, times 1)	10.9	9.4	9.1	8.1	6.8	6.4	5.9	6.6
Data per share (SEK)
Earnings/loss for the period	2.75 2 )	4.00 4 )	2.05 6 )	1.50 8 )	-0.35 10)	3.10 12)	1.80 14)	2.60 16)
Equity	70 3 )	74 5 )	70 7 )	61 9 )	61 11)	64 13)	65 15)	62 17)
Operating cash flow	10.90 2 )	0.95 4 )	14.35 6 )	3.20 8 )	1.25 10)	-0.75 12)	3.65 14)	5.55 16)

1 ) Rolling 12 months.

2 ) Based on weighted average number of shares outstanding during third quarter, 24,924,440.

3 ) Based on number of shares outstanding at 30 September 2011, 24,559,147.

4 ) Based on weighted average number of shares outstanding during fourth quarter, 24,563,301.

5 ) Based on number of shares outstanding at 31 December 2011, 24,565,028.

6 ) Based on weighted average number of shares outstanding during first quarter, 24,749,835.

7 ) Based on number of shares outstanding at 31 March 2012, 25,089,165.

8 ) Based on weighted average number of shares outstanding during second quarter, 25,013,960.

9 ) Based on number of shares outstanding at 30 June 2012, 24,752,901.

10) Based on weighted average number of shares outstanding during third quarter, 24,663,161.

11) Based on number of shares outstanding at 30 September 2012, 24,546,644.

12) Based on weighted average number of shares outstanding during fourth quarter, 24,566,868.

13) Based on number of shares outstanding at 31 December 2012, 24,657,606.

14) Based on weighted average number of shares outstanding during first quarter, 24,662,698.

15) Based on number of shares outstanding at 31 March 2013, 24,667,096.

16) Based on weighted average number of shares outstanding during second quarter, 24,670,763.

17) Based on number of shares outstanding at 30 June 2013, 24,671,552.

Income Statement for Parent Company

	Second quarter		First six month		July 12 -	Full year
SEK M	2013	2012	2013	2012	June 13	2012
Net turnover	98	98	197	197	381	381
Administrative expenses	109	108	223	217	428	422
Operating loss 1)	-11	-10	-26	-20	-47	-41
Result from financial items
Income from interests in Group companies	0	0	0	0	231	231
Interest income from Group companies	6	9	13	19	26	32
Other interest income and similar line items	1	1	3	2	6	5
Interest expenses to Group companies	0	0	0	2	0	2
Interest expenses and similar line items	4	2	9	4	14	9
Profit after financial items	-8	-2	-19	-5	202	216
Appropriations	0	0	0	0	-48	-48
Profit before tax	-8	-2	-19	-5	154	168
Tax	0	0	2	0	-55	-57
Net profit for the period	-8	-2	-17	-5	99	111
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	3	3	7	6	1 3	1 2
- Equipment, tools, fixtures and fittings	1	0	1	0	2	1

Balance Sheet for Parent Company, Summary

SEK M	30/6 2013	31/12 2012	30/6 2012
Assets
Non-current assets
Intangible assets
Intellectual property	46	43	44
	46	43	44
Property, plant and equipment
Buildings	8	3	2
Construction in progress	3	2	-
Equipment, tools, fixtures and fittings	9	8	6
	20	13	8
Long-term investments Interests in Group companies	724	724	743
Other securities held as non-current assets	0	0	0
Other non-current receivables	29	25	33
Deferred tax asset	22	20	22
	775	769	798
Total non-current assets	841	825	850
Current assets
Current receivables
Receivables from Group companies	19	716	66
Other receivables Cash and bank balances	96 404	95 0	99 344
Total current assets	519	811	509
Total assets	1,360	1,636	1,359
Equity and liabilities
Equity
Restricted equity
Share capital	251	251	251
Statutory reserve	47	47	47
	298	298	298
Non-restricted equity	47	47	46
Share premium reserve Retained earnings including net profit for the year	601	765	657
	648	812	703
Total equity	946	1,110	1,001
Untaxed reserves	227	227	179
Provisions
Provisions for pensions and similar obligations	18	17	16
Deferred tax liability	0	0	0
	18	17	16
Non-current liabilities
Debenture loan	28	28	28
Other liabilities	5 33	5 33	5 33
Current liabilities
Liabilities to credit institutes	-	55	-
Liabilities to Group companies	-	29	-
Other liabilities	136	165	130
	136	249	130
Total equity and liabilities	1,360	1,636	1,359
Pledged assets and contingent liabilities for Parent Company
Pledged assets	447	447	447
Contingent liabilities	1,252	1,153	1,094