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Bilia — Interim / Quarterly Report 2014
Oct 24, 2014
2892_10-q_2014-10-24_78d2862f-94cf-449b-ba85-819787b27667.pdf
Interim / Quarterly Report
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Everything to do with our finances. And then some.
Report for the third quarter of 2014
| 2) | |||
|---|---|---|---|
1 )
2 )
Notable events during 2014
- On 30 September 2014, Bilia concluded an agreement with Fastighets AB Balder on the sale of the property company that was included in the acquisition of the Toyota operation, see below. The purchase consideration amounted to SEK 48 M and the capital gain after tax was just under SEK 13 M. Bilia's net debt declined by SEK 72 M.
- On 20 January 2014, Bilia concluded an agreement with Toyota Sweden Holding AB on the acquisition of a property company and Toyota's operation in Malmö, Trelleborg and Lund. The date of possession was 1 March 2014. The purchase consideration totalled SEK 77 M, of which the dealership operation accounted for SEK 43 M and the property company SEK 34 M. An interest-bearing loan in the property company of SEK 27 M was settled when Bilia took possession, which means that the Bilia Group's capital employed and net debt increased by SEK 104 M as an effect of the acquisition.
Further information on the above events and other press information is available at www.bilia.com.
Third quarter 2014
Demand for cars and service was on a level with the second quarter of 2014. Demand for cars was slightly better than for the same quarter last year, while demand for service was on a level with last vear.
Net turnover amounted to SEK 4,531 M (4,155). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 270 M or 7 per cent. The increase is mainly attributable to car sales.
Operating profit amounted to SEK 132 M (76). If items affecting comparability are excluded, the profit was SEK 119 M (96). The improvement is entirely attributable to the Car Business, which reported a profit that was SEK 12 M better than last year. The Service Business reported a profit that was SEK 10 M better than last year. Underlying Group overheads increased by about 2 per cent compared with last year. Overheads amounted to 12.8 per cent in relation to net turnover, which was 0.4 percentage point lower compared with last year. In view of the earnings level during the quarter, provision was made for employee bonuses of SEK 5 M (6).
Net financial items amounted to SEK-5 M (-3). The negative trend compared with last year is mainly attributable to the fact that the pension liability in Sweden carries interest that is charged to net financial items at a rate of 5.8 per cent (4.1).
Tax for the period amounted to SEK-22 M (-19). The tax corresponds to a tax rate of 21 per cent (29) if the tax-free portion of the earnings of the associated companies and the gain from property sales are excluded.
Net profit for the period was SEK 105 M (54) and earnings per share SEK 4.15 (2.15). Exchange rate changes affected the profit marginally.
Total assets increased by SEK 185 M during the quarter, amounting to SEK 6,459 M. The increase was attributable to cash and cash equivalents, which increased by SEK 522 M. Stocks of cars were at a very low level at the end of the quarter and are expected to increase during the fourth quarter of 2014.
Equity increased by SEK 65 M, amounting to SEK 1,805 M. Equity has been charged with a revaluation of defined-benefit pension plans by SEK 48 M. The revaluation of the pension liability is recognised under "Other comprehensive income/loss". The equity/assets ratio amounted to 28 per cent (28).
Acquisition of non-current assets amounted to SEK 28 M (15). Replacement investments represented SEK 6 M (2), expansion investments SEK 11 M (8), environmental investments SEK 1 M (1) and investments in new construction and additions to properties SEK 8 M (2), while finance leases amounted to SEK 2 M (2).
Operating cash flow amounted to SEK 597 M (29). After acquisitions and disposals of operations and change in interest-bearing receivables, cash flow amounted to SEK 605 M (54). Property sales increased cash flow by SEK 72 M. Net debt decreased by SEK 562 M during the quarter, amounting to SEK 9 M.
Liquidity remains good, and at the end of September a positive bank balance of SEK 590 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 900 M.
The number of employees declined by 27 during the quarter to 3,505 persons.
Items affecting comparability
| Third quarter | Nine months | Oct. 13 - | Full year | |||
|---|---|---|---|---|---|---|
| Group, SEK M | 2014 | 2013 | 2014 | 2013 | Sept. $14$ | 2013 |
| Operating profit excl. items affecting | ||||||
| comparability | 119 | 96 | 334 | 236 | 493 | 395 |
| Items affecting comparability | ||||||
| - Gain from sale of operation, other | 13 | 0 | 13 | 13 | ||
| - Structural costs etc. | 0 | $-20$ | -6 | $-27$ | -4 | -25 |
| - Impairment of land | 0 | 0 | 0 | -4 | ||
| Operating profit | 132 | 76 | 341 | 211 | 498 | 368 |
| Profit before tax excl. items affecting | ||||||
| comparability | 114 | 93 | 318 | 237 | 475 | 394 |
| Items affecting comparability | ||||||
| - Gain from sale of operation, other | 13 | $\Omega$ | 13 | 13 | ||
| - Structural costs etc. | 0 | $-20$ | -6 | $-27$ | -4 | $-25$ |
| - Impairment of land | 0 | -4 | ||||
| Profit before tax | 127 | 73 | 325 | 212 | 480 | 367 |
The quarter's gain from sale of operation pertains to the sale of the property company included in the acquisition of the Toyota operation in Malmö, Trelleborg and Lund, which took place in early 2014.
Structural costs during the first nine months of the year pertain to measures to reduce future costs in Denmark by about SEK 13 M per year.
Group
| Order backlog | ||||||||
|---|---|---|---|---|---|---|---|---|
| No. of new | Third quarter | Nine months | Oct. 13 - | Full year | 30 Sept. | |||
| cars | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 | 2014 | 2013 |
| Sweden 1) | 6,392 | 5,864 | 21,221 | 17,255 | 28,239 | 24,273 | 5,856 | 4,913 |
| Norway | 1,701 | 1,756 | 5,669 | 5,259 | 8,206 | 7,796 | 1,346 | 1,373 |
| Denmark | 861 | 862 | 2,622 | 2,591 | 3,589 | 3,558 | 442 | 657 |
| Total | 8,954 | 8,482 | 29,512 | 25,105 | 40,034 | 35,627 | 7,644 | 6,943 |
$1)$ Toyota is included in deliveries during the quarter with 220 (-) and during the first nine months with 539 (-), and in order backlog with 143 (-).
| Net turnover | Operating profit/loss excl. items affecting comparability, operating margin | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Third quarter | Nine months | Oct. $13 -$ | Full year | Third quarter | Nine months | $Oct. 13 -$ | Full year | ||||||||||
| SEKM | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 | 2014 | % | 2013 | % | 2014 | $\%$ | 2013 | $\%$ | Sept. 14 | 2013 | $\%$ |
| Sweden | 3.044 | 2,725 | 9.582 | 8,416 | 12.733 | 11,567 | 108 | 3.5 | 86 | 3.1 | 296 | 3.1 | 217 | 2.6 | 421 | 342 | 3.0 |
| Norway | 1.255 | 1,192 | 3.828 | 3,644 | 5,271 | 5,087 | 21 | 1.7 | 1.8 1 | 85 | 2.2 | 64 | 1.8 | 137 | 116 | 2.3 | |
| Denmark | 232 | 237 | 746 | 716 | ,027 | 997 | -4 | $-1.9$ | -5 | $\sim$ | $-17$ | $-2.3$ | $-15$ | $-2.0$ | $-22$ | $-20$ | $-2.0$ |
| Total Cars | 4.531 | 4,154 | 14.156 | 12,776 | 19,031 | 17,651 | 125 | 2.7 | 102 | 2.5 | 364 | 2.6 | 266 | 2.1 | 536 | 438 | 2.5 |
| Parent Company, other | $-30$ | $-30$ | $-43$ | $-43$ | |||||||||||||
| Total | 4.531 | 4,155 | 14.155 | 12,778 | 19,033 | 17.656 | 119 | 2.6 | 96 | 2.3 | 334 | 2.4 | 236 | 1.9 | 493 | 395 | 2.2 |
• Strong earnings in Sweden
• Higher order backlog
During the quarter, the market for new cars increased by 10 per cent in Sweden, decreased by 1 per cent in Norway and was unchanged in Denmark.
The Group reported an operating profit, excluding items affecting comparability, of SEK 119 M (96) and an operating margin of 2.6 per cent (2.3) during the third quarter. The Service Business reported a profit that was SEK 10 M better, while the Car Business reported a profit that was SEK 12 M better, compared with last year. The order backlog increased by 748 cars during the quarter to 7,644 cars.
The operation in Sweden reported an operating profit of SEK 108 M (86), with an operating margin of 3.5 per cent (3.1). The Car Business reported a profit that was SEK 14 M better than last year. The improvement is mainly attributable to higher sales of both new and used cars and to a slightly higher gross profit margin. The Service Business reported a profit that was SEK 7 M better than last year. The improvement is mainly attributable to higher turnover.
Operating profit in Bilia's Norwegian operation amounted to SEK 21 M (21) and the operating margin to 1.7 per cent (1.8). The Service Business reported a profit that was SEK 1 M higher than last year, while the Car Business reported a profit that was SEK 1 M lower. Earnings from sales of new cars declined by SEK 2 M, while earnings from sales of used cars increased by SEK 1 M. The stock of used cars was on a good level.
The Danish operation reported an operating loss of SEK 4 M (loss: 5). The improvement compared with last vear is attributable to the Service Business, Lower turnover in the Service Business was offset by lower costs. Competition from other dealers in the Copenhagen area who represent the same brands as Bilia continues to increase, squeezing gross profit margins and earnings in both the Car and Service Businesses.
Operations – divided into Service, Car and Fuel Businesses
- Improved earnings in both Car and Service Businesses
- Increased deliveries of new and used cars
| Net turnover 1) | Operating profit/loss, operating margin | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Third quarter | Nine months | Oct. $13 -$ | Full year | Third quarter | Nine months | Oct. $13 -$ | Full year | |||||
| SEKM | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 |
| Service Business | 942 | 898 | 3.058 | 2.919 | 4,189 | 4,050 | 83 | 73 | 254 | 212 | 393 | 351 |
| $-$ margin, % | 8.8 | 8.1 | 8.3 | 7.31 | 9.4 | 8.7 | ||||||
| Car Business | 3,470 | 3.135 | 10.848 | 9.563 | 14,539 | 13,254 | 37 | 25 | 97 | 41 | 123 | 67 |
| $-$ margin, % | 1.1 | 0.81 | 0.9 | 0.41 | 0.8 | 0.5 | ||||||
| Fuel Business | 274 | 272 | 801 | 811l | 1.057 | 1.067 | Δ | 13 | 13 | 20 | 20 | |
| $-$ margin $\%$ | 16 | $\mathcal{R}$ | 16 | 1 9 I | 1 Q |
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 from last year | ||||||||||
| Underlying turnover | 3.0 | 0.4 | $-13.3$ | 1.2 l | 4.0 | 3.9 | $-10.8$ | 3.1 | ||
| Calendar effect | 0.0 | 0.0 | 0.0 | 0.0 | 0.5 | $-0.5$ | $-0.5$ | 0.2I | ||
| Adjusted turnover | 3.0 | 0.4 | $-13.3$ | 1.2 | 4.5 | 3.4 | -11.3 | 3.3 |
The Service Business reported a profit that was SEK 10 M better than last year. The improvement was mainly attributable to higher turnover and a slightly higher gross profit margin. The Swedish operation developed in a positive direction during the quarter, reporting an adjusted turnover increase of 3 per cent, while Norway reported unchanged turnover. The decline in turnover in Denmark is mainly attributable to increased competition in the Copenhagen area. The number of working days was unchanged during the quarter compared with the same quarter last year.
The Car Business's deliveries of new cars increased during the quarter for comparable operations by 3 per cent and deliveries of used cars by 6 per cent. Orders received for new cars increased by 5 per cent compared with last year. Earnings from sales of new cars improved by SEK 4 M, due mainly to higher turnover. Earnings from sales of used cars improved by SEK 8 M and amounted to SEK 30 M. The improvement is mainly attributable to higher turnover and a slightly higher gross profit margin.
Stocks of used cars declined during the quarter and are at historically very low levels. The turnover rate for used cars increased, amounting to 9.8 times per year.
The Fuel Business is concentrated to Sweden, and earnings amounted to SEK 5 M (4).
All values in the above graphs pertain to isolated quarters.
Acquisition of operation 2014
Toyota's dealership operation in Malmö, Trelleborg and Lund
On 1 March 2014, Bilia acquired Toyota's dealership operation in Malmö, Trelleborg and Lund. The business generates an annual turnover of about SEK 350 M a year, with an average operating margin of 1.1 per cent. The purchase consideration amounted to SEK 43 M. The entire purchase consideration was paid in cash. There is no contingent purchase consideration.
Through the acquisition Bilia can enlarge its offer with the Toyota brand, belonging to one of the world's most successful automakers. It is further hoped that the acquisition will create opportunities for Bilia to grow with Toyota in the countries where Bilia does business.
The acquisition is expected to give rise to synergies valued at about SEK 3 M per year, with full effect from 2015. The business has 77 employees and will continue to be operated from the present-day facilities.
There are no external transaction costs or acquisition-related expenses attributable to the acquisition.
Effects of the acquisitions
The acquisition has the following effects on the Group's assets and liabilities.
The acquired operation's net assets at the acquisition date:
| Carrying amounts in Fair | Fair value | ||
|---|---|---|---|
| Toyota's dealer- | value | recognised in | |
| SEK M | ship operation | ladjustment | Group |
| Intangible assets | 13 | 13 | |
| Property, plant and equipment | 11 | 27 | 38 |
| Long-term investments | 0 | ||
| Deferred tax asset | 0 | ||
| Inventories | 39 | 39 | |
| Trade receivables and other receivables | 11 | 11 | |
| Cash and cash equivalents | |||
| Trade payables and other liabilities | 32 | 27 | 59 |
| Net identifiable assets and liabilities | 43 | 43 | |
| Consolidated goodwill | $\Omega$ | ||
| Purchase consideration paid, cash | 43 | ||
| Less: Cash and cash equivalents in aquired operation | |||
| Net effect on cash and cash equivalents | 42 |
Acquired customer relations totalling SEK 13 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.
The Parent Company's operating loss for the third quarter amounted to SEK-6 M (loss: 6).
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 2013 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. New IFRS's that became effective during the year have not had any significant effect on the Group's or the Parent Company's financial reports.
Annual General Meeting 2015
The Annual General Meeting will be held on 14 April 2015 at Bilia's facility at Haga Norra, Frösundaleden 4, in Stockholm. Shareholders who wish to have a matter on the agenda at the AGM should contact Bilia no later than 24 February 2015 in order for the matter to be included in the notice of the meeting.
The annual report for 2014 will be published on Bilia's website on 18 March 2015.
Events after the end of the report period
No significant events have occurred after the end of the report period.
Next report
The year-end report for 2014 will be published on 6 February 2015.
Gothenburg, 24 October 2014 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
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 2014 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 International Standard on Review Engagements ISRE 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, 24 October 2014
KPMGAB
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 24 October 2014 at 08:30 a.m..
Group's operating segments
| Nine months | |||||
|---|---|---|---|---|---|
| Service | Car | Fu | |||
| SEKM | 2014 | 2013 | 2014 | 2013 | 2014 |
| Net turnover | |||||
| External sales | 2,507 | 2,402 | 10,848 | 9,563 | 801 |
| Internal sales | 551 | 517 | |||
| Total net turnover | 3,058 | 2,919 | 10,848 | 9,563 | 801 |
| Depreciation/amortisation | 39 | 50 | 192 | 185 | |
| Operating profit/loss | 254 | 212 | 97 | 41 | 13 |
| Interest income | |||||
| Interest expenses | |||||
| Shares in profits of associated companies | 18 | 29 | |||
| Profit before tax | |||||
| Tax expense for the period | |||||
| Net profit for the period | |||||
| Material items of income and expense of a non-re- curring nature recognised in the Statement of |
|||||
| Depreciation/amortisation Operating profit/loss Interest income |
39 254 |
50 212 |
192 97 |
185 41 |
4 13 |
3 13 |
235 364 |
238 266 |
16 $-23$ |
12 $-55$ |
251 341 5 |
250 211 8 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expenses Shares in profits of associated companies Profit before tax |
18 | 29 | 18 | 29 | $-39$ 18 325 |
$-36$ 29 212 |
||||||
| Tax expense for the period | $-59$ | $-50$ | ||||||||||
| Net profit for the period | 266 | 162 | ||||||||||
| Material items of income and expense of a non-re- curring nature recognised in the Statement of Income and Other Comprehensive Income: Items affecting comparability |
||||||||||||
| - Profit from sale of operation, other | $\overline{c}$ | 6 | $\mathbf 0$ | 13 | 13 | $\overline{c}$ | ||||||
| - Structural costs etc. Items of non-recurring nature |
-5 っ |
$-18$ $-16$ |
-1 5 |
-9 $-9$ |
$-6$ | $-27$ $-25$ |
$-6$ $\overline{7}$ |
$-27$ $-25$ |
||||
| Material items not affecting cash besides depreciation/amortisation: - Other |
$-42$ | $-39$ | $-25$ | $-48$ | $-3$ | -1 | $-70$ | $-88$ | $-3$ | $-1$ | $-73$ | $-89$ |
| Total | $-42$ | $-39$ | $-25$ | $-48$ | $\overline{\phantom{a}}$ | $-1$ | $-70$ | $-88$ | $-3$ | $-1$ | $-73$ | $-89$ |
| Assets Interests in associated companies Deferred tax assets Other assets |
362 | 342 | 362 | 342 | 362 102 5,995 |
342 85 5,357 |
||||||
| Total assets | 362 | 342 | 362 | 342 | 6,459 | 5,784 | ||||||
| Investments in non-current assets | 88 | 35 | 799 | 536 | 3 | 890 | 572 | 19 | 23 | 909 | 595 | |
| Liabilities | ||||||||||||
| Equity | 1,805 | 1,597 | ||||||||||
| Liabilities | 4,654 | 4,187 | ||||||||||
| Total liabilities and equity | 6,459 | 5,784 |
Fuel
2013
$811$
$\overline{811}$
Segment
reconciliation
2014 201
1-
551-
552-
2013
$\overline{c}$
$-517$
$-515$
Group
14,155 12,778
14,155 12,778
2013
$2014$
$\operatorname{\mathsf{Total}}$
2013
$12,776$
$\frac{517}{13,293}$
$\frac{\text{Cars}}{2014}$
14,156
$\frac{551}{14,707}$
| Revenue from external customers |
assets | Non-current | ||
|---|---|---|---|---|
| SEKM | 2014 | 2013 | 2014 | 2013 |
| Geographical segments | ||||
| Sweden | 9,586 | 8,420 | 2,974 | 2,638 |
| Norway | 3,828 | 3,644 | 477 | 579 |
| Denmark | 746 | 716 | 113 | 79 |
| Segment reconciliation | -5 | $-2$ | -716 | $-724$ |
| Total | 14.155 | 12.778 | 2,848 | 2.572 |
Group's operating segments con'd.
Nine months
| Service | Car | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sweden | Norway | Denmark | Sweden | Norway | Denmark | |||||||
| SEKM | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Net turnover | ||||||||||||
| External sales | 1,739 | 1,657 | 611 | 581 | 157 | 164 | 7,042 | 5,959 | 3,217 | 3,052 | 589 | 552 |
| Internal sales | 337 | 302 | 171 | 166 | 43 | 49 | ||||||
| Total net turnover | 2,076 | 1,959 | 782 | 747 | 200 | 213 | 7,042 | 5,959 | 3,217 | 3,052 | 589 | 552 |
| Depreciation/amortisation | 29 | 41 | 6 | 3 | 170 | 164 | 18 | 18 | 4 | 3 | ||
| Operating profit/loss | 198 | 167 | 49 | 40 | 85 | 36 | 36 | 25 | $-24$ | $-20$ | ||
| Shares in profits of associated companies | 18 | 29 | ||||||||||
| Material items of income and expense of a non-re- curring nature recognised in the Statement of Income and Other Comprehensive Income: Items affecting comparability |
||||||||||||
| - Profit from sale of operation, other | $\overline{c}$ | 6 | ||||||||||
| - Structural costs etc. | $-7$ | $-3$ | $-5$ | -8 | -3 | -1 | ||||||
| Items of non-recurring nature | $\overline{z}$ | -1 | $-5$ | -8 | 6 | $-2$ | -3 | -1 | $-4$ | |||
| Material items not affecting cash besides depreciation/amortisation: |
||||||||||||
| - Other | $-35$ | $-35$ | -1 | $-2$ | -6 | $-2$ | $-18$ | $-34$ | 0 | $-7$ | $-14$ | |
| Total | $-35$ | $-35$ | $-1$ | $-2$ | -6 | $-2$ | $-18$ | $-34$ | -7 | $-14$ | ||
| Assets | ||||||||||||
| Interests in associated companies | 362 | 342 | ||||||||||
| Investments in non-current assets | 75 | 22 | 12 | 10 | 3 | 688 | 459 | 17 | 94 | 70 |
Consolidated Statement of Income and Other Comprehensive Income
| Third quarter | Nine months | Oct. 13 - | Full year | |||
|---|---|---|---|---|---|---|
| SEKM | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 |
| Net turnover | 4,531 | 4,155 | 14,155 | 12,778 | 19,033 | 17,656 |
| Costs of goods sold | $-3,832$ | $-3,511$ | $-11,979$ | $-10,792$ | $-16,070$ | $-14,883$ |
| Gross profit | 699 | 644 | 2,176 | 1,986 | 2,963 | 2,773 |
| Other operating income | 15 | $\overline{2}$ | 19 | 9 | 21 | 11 |
| Selling expenses | $-478$ | $-448$ | $-1,512$ | $-1,435$ | $-2,035$ | $-1,958$ |
| Administrative expenses | $-104$ | $-101$ | $-335$ | $-320$ | $-443$ | $-428$ |
| Other operating expenses | 0 | $-21$ | $-7$ | $-29$ | -8 | $-30$ |
| Operating profit 1) | 132 | 76 | 341 | 211 | 498 | 368 |
| Financial income | ı | 3 | 5 | 8 | 31 | 34 |
| Financial expenses | $-13$ | $-12$ | $-39$ | $-36$ | $-73$ | $-70$ |
| Shares in profits of associated companies | 7 | 6 | 18 | 29 | 24 | 35 |
| Net financial items | $-5$ | $-3$ | $-16$ | $\mathbf 1$ | $-18$ | $\textnormal{\textbf{-1}}$ |
| Profit before tax | 127 | 73 | 325 | 212 | 480 | 367 |
| Tax | $-22$ | $-19$ | $-59$ | $-50$ | -86 | $-77$ |
| Net profit for the period | 105 | 54 | 266 | 162 | 394 | 290 |
| Other comprehensive income/loss | ||||||
| Items that cannot be reclassified to profit or loss | ||||||
| Revaluation of defined-benefit pension plans | -61 | 0 | $-105$ | 0 | $-30$ | 75 |
| Tax attributable to items that cannot be reclassified | ||||||
| to profit or loss | 13 | 0 | 23 | 0 | 6 | -17 |
| $-48$ | $\mathbf 0$ | $-82$ | $\Omega$ | $-24$ | 58 | |
| Items that can be reclassified to profit or loss | ||||||
| Translation differences attributable to foreign | ||||||
| operations | 8 | $-12$ | 24 | $-26$ | 19 | -31 |
| Tax attributable to items that have been or may be | ||||||
| reclassified to profit or loss | 0 | $\mathbf 0$ | 0 | $\mathbf 0$ | $\mathbf 0$ | |
| 8 | $-12$ | 24 | $-26$ | 19 | $-31$ | |
| Other comprehensive income/loss after tax | $-40$ | $-12$ | $-58$ | $-26$ | $-5$ | 27 |
| Comprehensive income for the period | 65 | 42 | 208 | 136 | 389 | 317 |
| Net profit for the period attributable to: Parent Company's shareholders |
105 | 54 | 266 | 162 | 394 | 290 |
| Comprehensive income for the period | ||||||
| attributable to: | ||||||
| Parent Company's shareholders | 65 | 42 | 208 | 136 | 389 | 317 |
| Weighted average number of shares, '000: | ||||||
| - before dilution | 25,159 | 24,685 | 25,151 | 24,673 | 25,122 | 24,765 |
| - after dilution | 25,459 | 25,015 | 25,459 | 25,007 | 25,434 | 25,096 |
| Basic earnings/loss per share, SEK | 4.15 | 2.15 | 10.55 | 6.55 | 15.70 | 11.70 |
| Diluted earnings/loss per share, SEK | 4.10 | 2.10 | 10.45 | 6.45 | 15.55 | 11.55 |
| Weighted average number of own shares, '000 | 456 | 452 | 25 | 363 | ||
| 1) Straight-line amortisation/depreciation by asset class: | ||||||
| - Intellectual property | $-10$ | -9 | $-30$ | $-29$ | $-39$ | $-38$ |
| - Land and buildings | $-4$ | $-3$ | $-11$ | -8 | $-20$ | $-17$ |
| - Equipment, tools, fixtures and fittings | $-17$ | $-16$ | $-51$ | $-50$ | $-62$ | $-61$ |
| - Leased vehicles | $-55$ | $-49$ | $-159$ | $-163$ | $-206$ | $-210$ |
| Total | $-86$ | $-77$ | $-251$ | $-250$ | $-327$ | $-326$ |
Consolidated Statement of Financial Position, Summary
| SEK M | 30/9 2014 | 31/12 2013 | 30/9 2013 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | |||
| Intellectual property | 186 | 190 | 198 |
| Goodwill | 267 | 259 | 260 |
| 453 | 449 | 458 | |
| Property, plant and equipment | |||
| Land and buildings | 96 | 94 | 95 |
| Construction in progress | 3 | 8 | 8 |
| Equipment, tools, fixtures and fittings | 321 | 297 | 290 |
| Leased vehicles 1) | 1,574 | 1,389 | 1,325 |
| 1,994 | 1,788 | 1,718 | |
| Long-term investments | |||
| Financial investments | 377 | 362 | 356 |
| Long-term receivables 2) | 24 | 27 | 40 |
| 401 | 389 | 396 | |
| Deferred tax assets | 102 | 66 | 85 |
| Total non-current assets | 2,950 | 2,692 | 2,657 |
| Current assets | |||
| Inventories, merchandise Current receivables |
1,939 | 2,268 | 1,993 |
| Other receivables 1) | 933 | 980 | 865 |
| Cash and cash equivalents 2) | 637 | 155 | 269 |
| Total current assets | 3,509 | 3,403 | 3,127 |
| Total assets | 6,459 | 6,095 | 5,784 |
| Equity and liabilities Equity |
|||
| Share capital | 251 | 251 | 251 |
| Other contributed capital | 47 | 47 | 47 |
| Reserves | $-29$ | $-53$ | $-48$ |
| Retained earnings including net profit for the year | 1,536 | 1,578 | 1,347 |
| Total equity | 1,805 | 1,823 | 1,597 |
| Non-current liabilities | |||
| Debenture loan 3) | 28 | 28 | 28 |
| Interest-bearing liabilities 3) | 59 | 122 | 133 |
| Other liabilities and provisions 4) | 1,603 | 1,261 | 1,422 |
| 1,690 | 1,411 | 1,583 | |
| Current liabilities | |||
| Interest-bearing liabilities 3) | 195 | 162 | 154 |
| Other liabilities and provisions | 2,769 | 2,699 | 2,450 |
| 2,964 | 2,861 | 2,604 | |
| Total equity and liabilities | 6,459 | 6,095 | 5,784 |
| Assets | |||
| 1) Of which interest-bearing | 224 | 228 | 211 |
| 2) Interest-bearing | 661 | 182 | 309 |
| Liabilities | |||
| 3) Interest-bearing | 282 | 312 | 315 |
| 4) Of which interest-bearing | 612 | 507 | 566 |
Statement of Changes in Group Equity, Summary
| SEK M | 30/9 2014 | 31/12 2013 | 30/9 2013 |
|---|---|---|---|
| Opening balance | 1,823 | 1,586 | 1,586 |
| Cash dividend to shareholders | $-226$ | $-148$ | $-148$ |
| Exercised warrants | 01 | ||
| Disposal of own shares | 68 | 23 | |
| Comprehensive income for the year | 208 | 317 | 136 |
| Closing balance | 1,805 | 1,823 | 1,597 |
Consolidated Statement of Cash Flows
| Third quarter | Nine months | Oct. 13 | Full year | |||
|---|---|---|---|---|---|---|
| SEKM | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 |
| Operating activities | ||||||
| Profit before tax | 127 | 73 | 325 | 212 | 480 | 367 |
| Depreciation/amortisation and impairment losses | 86 | 77 | 251 | 250 | 331 | 330 |
| Other items not affecting cash | $-22$ | 44 | -18 | $-4$ | -44 | $-30$ |
| Tax paid | $-22$ | $-20$ | $-113$ | $-34$ | $-144$ | $-65$ |
| Change in inventories | 195 | $-111$ | 408 | 5 | 117 | $-286$ |
| Change in operating receivables | 156 | $-16$ | 88 | 71 | $-41$ | $-58$ |
| Change in operating liabilities | 126 | $-15$ | 176 | $-93$ | 384 | 115 |
| Cash flow from operating activities | 646 | 32 | $\overline{1,117}$ | 407 | 1,083 | 373 |
| Investing activities | ||||||
| Acquisition of non-current assets (intangible and tangible) | $-28$ | $-15$ | $-153$ | $-70$ | $-188$ | $-105$ |
| Disposal of non-current assets (intangible and tangible) | 72 | 1 | 76 | 1 | 79 | |
| Acquisition of leased vehicles | $-221$ | $-175$ | $-756$ | $-525$ | $-931$ | $-700$ |
| Disposal of leased vehicles | 128 | 186 | 455 | 444 | 522 | 511 |
| Operating cash flow | 597 | 29 | 739 | 257 | 565 | 83 |
| Investment in financial assets | 0 | $\mathbf 0$ | -5 | 0 | -5 | $\overline{O}$ |
| Disposal of financial assets | 8 | $-2$ | 8 | 11 | 24 | 27 |
| Acquisition of subsidiary/operation, net | 0 | $\mathbf 0$ | -42 | $-25$ | $-44$ | $-27$ |
| Disposal of subsidiary/operation, net | 0 | 27 | 8 | 37 | 6 | 35 |
| Cash flow after net investments | 605 | 54 | 708 | 280 | 546 | 118 |
| Financing activities Borrowings |
0 | $\Omega$ | 400 | $\Omega$ | 400 | $\mathbf 0$ |
| Repayment of loans | $-100$ | 0 | $-400$ | 0 | $-400$ | 0 |
| Change in overdraft facility | 14 | 55 | $-3$ | 52 | $\Omega$ | 55 |
| Exercised warrants | 0 | $\mathbf 0$ | 0 | $\mathbf 0$ | 0 | $\mathbf 0$ |
| Disposal of own shares | 0 | 23 | 0 | 23 | 45 | 68 |
| Dividend paid to Parent Company's shareholders | 0 | $\mathbf 0$ | $-226$ | $-148$ | $-226$ | $-148$ |
| Cash flow from financing activities | $-86$ | 78 | $-229$ | $-73$ | $-181$ | $-25$ |
| Change in cash and cash equivalents, excl. translation | ||||||
| differences | 519 | 132 | 479 | 207 | 365 | 93 |
| Exchange difference in cash and cash equivalents | 3 | 2 | 3 | $\Omega$ | 3 | $\Omega$ |
| Change in cash and cash equivalents | 522 | 134 | 482 | 207 | 368 | 93 |
| Cash and cash equivalents at start of period | 115 | 135 | 155 | 62 | 269 | 62 |
| Cash and cash equivalents at end of period | 637 | 269 | 637 | 269 | 637 | 155 |
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 28 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 and liabilities, valuation level 2, have per year-end been valuated to fair value. The value of the currency derivatives is not material and does not constitute an significant item. Fair value measurement has reduced earnings by SEK 0 M.
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 | 4/12 | 1/13 | 2/13 | 3/13 | 4/13 | 1/14 | 2/14 | 3/14 |
|---|---|---|---|---|---|---|---|---|
| Net turnover, SEK M | 4,534 | 4,048 | 4,575 | 4,155 | 4,878 | 4,547 | 5,077 | 4,531 |
| Operating profit excl. items affecting | ||||||||
| comparability, SEK M | 139 | 45 | 95 | 96 | 159 | 94 | 121 | 119 |
| Operating margin excl. items affecting | ||||||||
| comparability, % | 3.0 | 1.1 | 2.1 | 2.3 | 3.2 | 2.1 | 2.4 | 2.6 |
| Operating profit, SEK M | 112 | 45 | 90 | 76 | 157 | 94 | 115 | 132 |
| Operating margin, % | 2.5 | 1.1 | 2.0 | 1.8 | 3.2 | 2.1 | 2.3 | 2.9 |
| Profit before tax, SEK M | 108 | 54 | 85 | 73 | 155 | 88 | 110 | 127 |
| Profit/loss for the period, SEK M | 76 | 44 | 64 | 54 | 128 | 74 | 87 | 105 |
| Rate of capital turnover, times 1) | 3.12 | 3.04 | 3.03 | 3.07 | 3.06 | 3.12 | 3.12 | 3.10 |
| Return on capital employed, $%$ 1) | 12.3 | 11.6 | 13.0 | 15.3 | 17.7 | 18.7 | 19.4 | 21.0 |
| Return on equity, $% ^{1}$ | 9.1 | 9.4 | 11.4 | 15.2 | 17.0 | 18.9 | 20.0 | 22.2 |
| Net debt/equity, times | 0.36 | 0.30 | 0.31 | 0.23 | 0.22 | 0.21 | 0.32 | 0.01 |
| Equity/assets ratio, % | 27 | 30 | 27 | 28 | 30 | 31 | 28 | 28 |
| Interest coverage ratio, times 1) | 6.4 | 5.9 | 6.6 | 7.5 | 6.3 | 6.7 | 6.9 | 7.6 |
| Data per share (SEK) | ||||||||
| Earnings/loss for the period | 2) 3.10 |
4) 1.80 |
6) 2.60 |
$2.15$ $8)$ | $5.15$ 10) | $2.95$ 12) | $3.45^{14}$ | 4.15 $^{16)}$ |
| Equity | 3) 64 |
$65^{5}$ | $62^{7}$ | $64^{9}$ | $72^{111}$ | $76^{13}$ | $69^{15}$ | $72^{17}$ |
| Operating cash flow | 2) $-0.75$ |
4) 3.65 |
$5.55^{6}$ | 8) 1.20 |
$-7.05$ 10) | $0.95$ 12) | $4.70^{14}$ | $23.75$ 16) |
$1)$ Rolling 12 months.
$2)$ Based on weighted average number of shares outstanding during fourth quarter, 24,566,868.
$3)$ Based on number of shares outstanding at 31 December 2012, 24,657,606.
$4)$ Based on weighted average number of shares outstanding during first quarter, 24,662,698.
$5)$ Based on number of shares outstanding at 31 March 2013, 24,667,096.
$6)$ Based on weighted average number of shares outstanding during second quarter, 24,670,763.
7) Based on number of shares outstanding at 30 June 2013, 24,671,552.
$8)$ Based on weighted average number of shares outstanding during third quarter, 24,684,972.
$9)$ Based on number of shares outstanding at 30 September 2013, 24,841,194.
$10)$ Based on weighted average number of shares outstanding during fourth quarter, 25,036,534.
$\bar{1}\bar{1})$ Based on number of shares outstanding at 31 December 2013, 25,139,592.
$12)$ Based on weighted average number of shares outstanding during first quarter, 25,141,384.
$13)$ Based on number of shares outstanding at 31 March 2014, 25,145,051.
$14)$ Based on weighted average number of shares outstanding during second quarter, 25,150,843.
$15)$ Based on number of shares outstanding at 30 June 2014, 25,156,163.
$16$ ) Based on weighted average number of shares outstanding during third quarter, 25,159,462.
$17$ ) Based on number of shares outstanding at 30 September 2014, 25, 165, 361.
Income Statement for Parent Company
| Third quarter | Nine months | Oct. 13 - | Full year | |||
|---|---|---|---|---|---|---|
| SEKM | 2014 | 2013 | 2014 | 2013 | Sept. 14 | 2013 |
| Net turnover | 111 | 101 | 328 | 298 | 431 | 401 |
| Administrative expenses | $-117$ | $-107$ | $-358$ | $-330$ | $-474$ | $-446$ |
| Operating loss 1) | -6 | -6 | $-30$ | $-32$ | $-43$ | $-45$ |
| Result from financial items | ||||||
| Income from interests in Group companies | 15 | 0 | 70 | $\Omega$ | 29 | $-41$ |
| Interest income from Group companies | 5 | 19 | 18 | 25 | 24 | |
| Other interest income and similar line items | 2 | 3 | 27 | 29 | ||
| Interest expenses to Group companies | 0 | 0 | 0 | $\Omega$ | $\mathbf{O}$ | |
| Interest expenses and similar line items | -3 | $-4$ | $-9$ | $-13$ | $-36$ | $-40$ |
| Loss after financial items | 11 | $-3$ | 53 | $-22$ | $\mathcal{P}$ | $-73$ |
| Appropriations | 0 | O | 0 | $\Omega$ | 272 | 272 |
| Profit/loss before tax | 11 | $-3$ | 53 | $-22$ | 274 | 199 |
| Tax | 0 | $-1$ | 6 | $-50$ | $-55$ | |
| Net profit/loss for the period | 11 | $-4$ | 59 | $-21$ | 224 | 144 |
| 1) Straight-line amortisation/depreciation by asset class: | ||||||
| - Intellectual property | $-4$ | $-2$ | $-11$ | $-9$ | $-14$ | $-12$ |
| - Buildings | $\Omega$ | $\Omega$ | -1 | $^{-1}$ | $\mathbf{0}$ | |
| - Equipment, tools, fixtures and fittings | -1 | $-1$ | $-2$ | $-2$ | $-2$ | $-2$ |
| Total | $-5$ | $-3$ | $-14$ | $-11$ | $-17$ | $-14$ |
Balance Sheet for Parent Company, Summary
| SEKM | 30/9 2014 | 31/12 2013 | 30/9 2013 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | |||
| Intellectual property | 44 | 46 | 47 |
| 44 | 46 | 47 | |
| Property, plant and equipment | |||
| Buildings | 20 | 11 | 8 |
| Construction in progress | 3 | 8 | $\overline{4}$ |
| Equipment, tools, fixtures and fittings | 9 | 9 | 8 |
| 32 | 28 | 20 | |
| Long-term investments | |||
| Interests in Group companies Other securities held as non-current assets |
716 0 |
716 | 724 |
| Other non-current receivables | 20 | 0 20 |
0 25 |
| Deferred tax asset | 30 | 24 | 24 |
| 766 | 760 | 773 | |
| Total non-current assets | 842 | 834 | 840 |
| Current assets | |||
| Current receivables | |||
| Receivables from Group companies | 36 | 715 | 17 |
| Other receivables | 381 | 94 | 106 |
| Cash on hand and accrued deposits | 221 | 83 | 416 |
| Total current assets | 638 | 892 | 539 |
| Total assets | 1,480 | 1,726 | 1,379 |
| 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 | 47 |
| Retained earnings including net profit for the year | 662 | 829 | 620 |
| 709 | 876 | 667 | |
| Total equity | 1,007 | 1,174 | 965 |
| Untaxed reserves | 277 | 277 | 227 |
| Provisions | |||
| Provisions for pensions and similar obligations | 22 | 19 | 19 |
| Deferred tax liability | ı | 0 | |
| 23 | 20 | 19 | |
| Non-current liabilities Debenture loan |
28 | 28 | 28 |
| Other liabilities | 5 | 5 | 5 |
| 33 | 33 | 33 | |
| Current liabilities | |||
| Liabilities to credit institutes | 32 | ||
| Liabilities to Group companies | 0 | 24 | |
| Other liabilities | 140 | 166 | 135 |
| 140 | 222 | 135 | |
| Total equity and liabilities | 1,480 | 1,726 | 1,379 |
| Pledged assets and contingent liabilities for Parent Company | |||
| Pledged assets | 552 | 534 | 447 |
| Contingent liabilities | 1,197 | 1,356 | 1,191 |