Bilia — Interim / Quarterly Report 2013

Feb 4, 2014

Everything to do with our finances. And then some.

Year-end report 2013

Year-end report 2013

Full year 2013

• Net turnover amounted to SEK 17,656 M (17,662).
• Net profit for the year was SEK 290 M (156) and earnings per share SEK 11.70 (6.30).
• An ordinary dividend is proposed in the amount of SEK 9.00 (6.00).

Fourth quarter

• Net turnover amounted to SEK 4,878 M (4,534).
• Operating profit excluding items affecting comparability amounted to SEK 159 M (139).
• Net profit for the period was SEK 128 M (76) and earnings per share SEK 5.15 (3.10).
• Operating cash flow amounted to SEK -174 M (-20).

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

quarter of this year and the same quarter last year. Operations in Sweden and Norway developed favourably and Norway reported the best quarterly earnings in history. The Service Business continued to develop very positively and reported better earnings than last year. The Car Business reported earnings on a level with last year. The order backlog of new cars declined but is still high compared with last year, and the Group's financial position is strong. We project that demand for cars and service in the first quarter of 2014 will be slightly higher than compared with the first quarter

	Fourth quarter		Full year
Group	2013	2012	2013	2012
Net turnover, SEK M	4,878	4,534	17,656	17,662
Operating profit excl. items affecting
comparability, SEK M 1 )	159	139	395	331
Operating margin excl. items affecting
comparability, %	3.2	3.0	2.2	1.9
Operating profit, SEK M	157	112	368	270
Operating margin, %	3.2	2.5	2.1	1.5
Profit before tax excl. items affecting
comparability, SEK M 1 )	157	135	394	314
Profit before tax, SEK M	155	108	367	253
Net profit for the period / year, SEK M	128	76	290	156
Earnings per share, SEK 2)	5.15	3.10	11.70	6.30

1 ) Items affecting comparability are shown in the table on page 5.

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 operation has been included in Bilia since 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. All shares (456,493) were sold during the period September to November. The sale proceeds of SEK 68 M, which include a capital gain of SEK 28 M, have been posted to equity.
• On 16 August, Bilia concluded an agreement to sell the BMW operation in Uddevalla, Henån and Strömstad. 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.
• Bilia in Norway acquired Kverneland's operation in Drammen on 1 March; the purchase consideration was SEK 25 M. At the same time, Kverneland acquired Bilia's operation in Bryne; the purchase consideration was SEK 12 M.

Events after the balance sheet date

On 20 January 2014, Bilia concluded an agreement with Toyota Sweden Holding AB to acquire Toyota's operation in Malmö, Trelleborg and Lund. The date of possession will be 1 March 2014. The operation has an annual turnover of SEK 350 M and 81 employees. The purchase consideration amounts to about SEK 109 M, of which properties account for about SEK 61 M.

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

Fourth quarter 2013

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

Net turnover amounted to SEK 4,878 M (4,534). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 445 M or 10 per cent. The increase is attributable to sales of both cars and service.

Operating profit amounted to SEK 157 M (112). If items affecting comparability are excluded, the profit was SEK 159 M (139). The improvement is mainly attributable to the Service Business, which reported a profit that was SEK 20 M better than last year. The Car Business reported earnings on a level with last year. Underlying Group overheads increased by 5 per cent compared with last year. Overheads amounted to 12.9 per cent in relation to net turnover, which was 0.7 percentage point lower compared with last year. In view of the earnings level during the quarter, provision was made for employee bonuses of SEK 6 M (7).

Net financial items amounted to SEK -2 M (-4).

Tax for the period amounted to SEK -27 M (-32). No tax asset has been recognised on this quarter's and last year's deficits in Denmark.

Profit for the period was SEK 128 M (76) and earnings per share SEK 5.15 (3.10). Exchange rate changes reduced the profit by SEK 2 M.

Total assets increased by SEK 311 M to SEK 6,095 M. The increase is mainly attributable to higher trade receivables and more new and used cars in stock.

Equity increased by SEK 226 M, amounting to SEK 1,823 M. The equity/assets ratio amounted to 30 per cent (27).

Acquisition of non-current assets amounted to SEK 35 M (50). Replacement investments represented SEK 10 M (13), expansion investments SEK 16 M (16), environmental investments SEK 1 M (2) and investments in new construction and additions to properties SEK 7 M (18), while finance leases amounted to SEK 1 M (1).

Operating cash flow amounted to SEK -174 M (-20). After acquisition of operations and change in interest-bearing receivables, cash flow amounted to SEK -162 M (22). The negative cash flow is attributable to increased capital tied up in car stocks and trade receivables. Net debt increased by SEK 48 M during the quarter, amounting to SEK 409 M.

Liquidity remains good, and at the end of December a positive bank balance of SEK 49 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 900 M. In December, the company's credit agreements with the banks were extended until November 2016.

The number of employees increased by 31 during the quarter and amounts to 3,401 persons.

Full year 2013

Demand for cars was on a level with last year, while demand for service was slightly lower.

Net turnover amounted to SEK 17,656 M (17,662). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 125 M or 1 per cent.

Operating profit amounted to SEK 368 M (270). If items affecting comparability are excluded, the profit was SEK 395 M (331). The improvement is attributable to the Service Business, which reported much better earnings due mainly to higher turnover and slightly lower costs. The Car Business reported lower earnings due to higher relative costs in sales of new cars. Underlying Group overheads increased by 1 per cent compared with last year. In view of the earnings level during the year, provision was made for employee bonuses of SEK 16 M (12).

Net financial items amounted to SEK -1 M (-17). The improvement is attributable to higher earnings from associated companies, SEK 35 M (19). A change in the income tax rate in Sweden to 22 per cent accounts for about SEK 14 M of the improvement in earnings from associated companies.

Tax for the year amounted to SEK -77 M (-97). No tax asset has been recognised on this quarter's and last year's deficits in Denmark. Last year's tax was affected by the fact that the tax asset attributable to unutilised loss carryforwards was written down to SEK 0.

Net profit for the year was SEK 290 M (156) and earnings per share SEK 11.70 (6.30). Exchange rate changes reduced the profit by SEK 4 M.

Total assets increased by SEK 253 M to SEK 6,095 M. The increase is mainly attributable to more new cars in stock and to cash and cash equivalents.

Equity increased by SEK 237 M, amounting to SEK 1,823 M. Dividends were paid to shareholders in the amount of SEK 148 M.

Bilia's financial goals were met, according to the following. Operating margin 2.1 per cent (goal 2.2), return on capital employed 17.7 per cent (goal 14.0) and return on equity 17.0 per cent (goal 15.0).

Acquisition of non-current assets amounted to SEK 105 M (155). Replacement investments represented SEK 31 M (35), expansion investments SEK 43 M (47), environmental investments SEK 2 M (2) and investments in new construction and additions to properties SEK 20 M (65), while finance leases amounted to SEK 9 M (6).

Operating cash flow amounted to SEK 83 M (446). After acquisition of operations and change in interest-bearing receivables, cash flow amounted to SEK 118 M (253). Net debt decreased by SEK 161 M during the year, amounting to SEK 409 M.

The number of employees declined by 30 during the year, amounting to 3,401 persons.

Items affecting comparability

	Fourth quarter		Full year
Group, SEK M	2013	2012	2013	2012
Operating profit excl. items affecting
comparability	159	139	395	331
Items affecting comparability
- Gain from sale of operation, other	0	4	2	24
- Structural costs etc.	2	-31	-25	-85
- Impairment of land	-4	0	-4
Operating profit	157	112	368	270
Profit before tax excl. items affecting
comparability	157	135	394	314
Items affecting comparability
- Gain from sale of operation, other	0	4	2	24
- Structural costs etc.	2	-31	-25	-85
- Impairment of land	-4	0	-4
Profit before tax	155	108	367	253

The quarter's structural costs etc. pertain to reversal of previously made provisions in Denmark. Impairment of land pertains to recognition of impairment loss on two sites in Denmark.

Gain from sale of operation for the full year pertains to the sale of a property in Lillehammer, Norway. Structural costs etc. include SEK 18 M for measures to reduce future costs by about SEK 30 M per year, with full effect from 2014, and revaluation of last year's provision in Denmark by SEK 7 M.

Group

		Order backlog
No. of new		Fourth quarter Full year			31 Dec.
cars	2013	2012	2013	2012	2013	2012
Sweden Norway	7,018 2,537	6,427 1,919	24,273 7,796	23,729 7,610	4,348 1,245	3,473 1,077
Denmark	967	990	3,558	3,217	430	333
Total	10,522	9,336	35,627	34,556	6,023	4,883

Net turnover Full year Fourth quarter				Operating profit/loss excl. items affecting comparability, operating margin Full year Fourth quarter.
SEKM	2013	2012	2013	2012	2013	$\%$	2012	w	2013	$\%$	2012	$\mathbf{H}_{\mathrm{in}}$
Sweden	3,151	2,934	11,567	11.136	125	4.0	131	4.5	342	3.0	293	2.6
Norway	1,443	1,305	5,087	5,403	52	36	28	2.1	116	23	124	2.3
Denmark.	281	296	997	1,121	-5	$-2.1$		$-2.5$	$-20$	$-2.0$	-47	4.2
Total Cars	4,875	4,535	17,651	17,660	172	35			438	25	370	$^{2.1}$
Parent Company, other					$-13$		$-12$		-43		$-39$
Total	4,878	4,534	17,656	17,662	159	32	1.79	2.0	395	22	331	$-9$

• Strong earnings in Norway
• Higher order backlog

The market for new cars increased during the quarter by 11 per cent in Denmark and 8 per cent in Norway, while it remained unchanged in Sweden.

The Group reported an operating profit, excluding items affecting comparability, of SEK 159 M (139) during the quarter and an operating margin of 3.2 per cent (3.0). The earnings improvement is mainly attributable to higher turnover in the Service Business. The Car Business reported a profit that was SEK 2 M lower than last year. The order backlog declined during the quarter by 920 cars to 6,023 cars, but the order backlog is 1,140 cars higher compared with last year.

The operation in Sweden reported an operating profit of SEK 125 M (131), with an operating margin of 4.0 per cent (4.5). The Service Business developed very positively and reported earnings that were SEK 16 M better compared with last year. The improvement is attributable to higher sales and lower relative costs. The Car Business reported a profit that was SEK 24 M lower than last year. The decrease is mainly attributable to lower gross profit margin and higher relative costs in new car sales.

Operating profit in Bilia's Norwegian operation amounted to SEK 52 M (28) and the operating margin to 3.6 per cent (2.1). This was the best quarterly profit ever reported in the history of the company. The Car Business reported a profit that was SEK 20 M better than last year's. The improvement is mainly attributable to higher turnover and lower relative costs in new car sales. In addition to the order backlog of 1,245 cars, orders have been received for 300 BMW i3 electric cars, which are being handled according to a new sales model where Bilia is the agent for BMW and receives a sales commission at the time of delivery. Earnings in the Service Business improved by SEK 4 M, mainly due to an increase in underlying turnover by 7 per cent.

The Danish operation reported an operating loss of SEK 5 M (loss: 8). Earnings in the Service Business were slightly better than last year. Turnover declined by 12 per cent, while costs declined by 13 per cent. The Car Business also reported slightly better earnings than last year, mainly due to a higher gross profit margin in sales of new cars. Altogether, overheads in the Danish operation decreased by SEK 4 M or 7 per cent compared with last year.

Operations divided into Service, Car and Fuel businesses

Growth and good earnings in the Service Business

Lower gross profit margin in the Car Business

		Net turnover 1 )	Operating profit, operating margin
	Fourth quarter		Full year		Fourth quarter			Full year
SEK M	2013	2012	2013	2012	2013	2012	2013	2012
Service Business	1,131	1,076	4,050	3,960	139	119	351	268
- margin, %					12.3	11.1	8.7	6.8
Car Business	3,691	3,363	13,254	13,233	26	28	67	89
- margin, %					0.7	0.8	0.5	0.7
Fuel Business	256	284	1,067	1,185	7	4	20	13
- margin, %					2.5	1.4	1.9	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

	Fourth quarter				Full year
Per cent	Sweden		Norway Denmark	Total	Sweden		Norway Denmark	Total
Change previous year
Underlying turnover	8.0	7.2	-12.5	6.5	4.8	2.9	-14.9	2.8
Calendar effect	0.0	0.0	0.0	0.0	0.0	0.8	0.4	0.2
Adjusted turnover	8.0	7.2	-12.5	6.5	4.8	3.7	-14.5	3.0

The trend has been positive in the Service Business, and the year finished with very strong growth. Slightly improved demand, together with a focus on older cars, service agreements, add-on sales and more deliveries of new cars explain the increase in Sweden and Norway. The decline in turnover in Denmark is attributable to extensive structural measures carried out during 2012, when three of eight facilities were closed. The quarter contained the same number of working days in all countries as last year.

The Car Business's deliveries of new cars increased during the quarter for comparable operations by 11 per cent and deliveries of used cars by 8 per cent. Orders received for new cars increased by 8 per cent compared with last year. Earnings from sales of new cars were on a level with last year. Turnover was higher, while the gross profit margin was at a lower level than last year. More deliveries of new cars during the quarter resulted in more traded-in used cars and thereby higher stocks. Activities have been compared for the purpose of reducing stocks, which resulted in a loss being reported for sales of used cars during the quarter.

Stocks of used cars increased despite all efforts during the quarter, but are at acceptable levels, except in Norway. The turnover rate for used cars remained at a high level, however, amounted to 9.4 times per year.

The Fuel Business is concentrated to Sweden, and earnings amounted so SEK 7 M (4). 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

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.

fourth quarter amounted to SEK -13 M (loss: 13).

Dividend

The Board of Directors proposes a regular dividend of SEK 9.00 (6.00).

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 balance sheet date

On 20 January 2014, Bilia concluded an agreement with Toyota Sweden Holding AB to acquire Toyota's operation in Malmö, Trelleborg and Lund. The date of possession will be 1 March 2014.

Audit

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

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 will be pu 14 March 2014.

Next report

The interim report for the first quarter of 2014 will be published on 29 April 2014.

Gothenburg, 4 February 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

This report is being published by Bilia AB in compliance with the Securities Market Act. The information was submitted for publication on 4 February 2014 at 12:50 p.m..

	Full year

	Service			Car		Fuel		Total		Segment		Group
SEK M	2013	2012	2013	2012	2013	2012	2013	2012	2013	reconciliation 2012	2013	2012
Net turnover
External sales Internal sales	3,330 720	718		3,242 13,254 13,233	1,067		1,185 17,651 17,660 720	718	5 -720	-718	2 17,656 17,662
Total net turnover	4,050			3,960 13,254 13,233	1,067		1,185 18,371 18,378		-715		- -716 17,656 17,662	-
Depreciation/amortisation	-55	-72	-250	-276	-5	-5	-310	-353	-16	-15	-326	-368
Operating profit/loss	351	268	67	89	20	13	438	370	-70	-100	368	270
Interest income											34	11
Interest expenses											-70	-47
Shares in profits of associated companies			35	19			35	19			35	19
Profit before tax											367	253
Tax expense for the year											-77	-97
Net profit for the year											290	156
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	14	0	10			2	24			2	24
- Structural costs etc.	-19	-65	-6	-14		-3	-25	-82		-3	-25	-85
- Impairment of land	-2		-2				-4	0			-4	0
Items of non-recurring nature	-19	-51	-8	-4	-	-3	-27	-58	-	-3	-27	-61
Material items not affecting cash besides
depreciation/amortisation:
- Other	-31	-73	-40	-38	-1	-1	-72	-112	-2	-2	-74	-114
Total	-31	-73	-40	-38	-1	-1	-72	-112	-2	-2	-74	-114
Assets
Interests in associated companies			348	317			348	317			348	317
Deferred tax assets											66	81
Other assets											5,681	5,444
Total assets			348	317			348	317			6,095	5,842
Investments in non-current assets	57	75	715	537	2	3	774	615	31	28	805	643
Liabilities
Equity											1,823	1,586
Liabilities											4,272	4,256
Total liabilities and equity											6,095	5,842

	external customers	Revenue from	Non-current assets
SEK M	2013	2012	2013	2012
Geographical segments Sweden Norway Denmark Segment reconciliation	5,087 997 -2	11,574 11,142 5,403 1,121 -4	2,719 538 85 -716	2,717 580 72 -723
Total		17,656 17,662	2,626	2,646

Group's operating segments con'd.

		Full year
--	--	-----------

				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	2,299	2,194	810	783	221	265	8,212	7,803	4,266	4,574	776	856
Internal sales	439	369	212	270	69	79
Total net turnover	2,738	2,563	1,022	1,053	290	344	8,212	7,803	4,266	4,574	776	856
Depreciation/amortisation	-45	-58	-7	-8	-3	-6	-219	-248	-26	-23	-5	-5
Operating profit/loss	283	229	60	52	8	-13	38	52	57	71	-28	-34
Shares in profits of associated companies							35	19
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		2			0	8		2
- Structural costs etc.	-7	-7	-3	-4	-9	-54	-2	-3	-3	-3	-1	-8
- Impairment of land					-2						-2
Items of non-recurring nature	-7	-7	-1	8	-11	-52	-2	-3	-3	5	-3	-6
Material items not affecting cash besides
depreciation/amortisation:
- Other	-31	-31	-2	-1	2	-41	-23	-29	1	-4	-18	-5
Total	-31	-31	-2	-1	2	-41	-23	-29	1	-4	-18	-5
Assets
Interests in associated companies							348	317
Investments in non-current assets	37	39	16	33	4	3	621	432	5	42	89	63

Consolidated Statement of Comprehensive Income and Other Comprehensive Income

SEK M 2013 2012 2013 2012 Net turnover 4,878 4,534 17,656 17,662 Costs of goods sold -4,091 -3,782 -14,883 -14,949 Gross profit 787 752 2,773 Other operating income 8 2 11 Selling expenses -523 -505 -1,958 Administrative expenses -108 -110 -428 Other operating expenses -1 -33 -30 Operating profit 1) 368 157 112 Financial income 26 4 34 Financial expenses -34 -13 -70 Shares in profits of associated companies 6 5 35 Net financial items -2 -4 -1 Profit before tax 155 108 367 Tax -27 -32 -77 Net profit for the year 128 76 290 Other comprehensive income/loss Items that cannot be reclassified to profit or loss Revaluation of defined-benefit pension plans 75 7 75 Tax attributable to items that cannot be reclassified to profit or loss -17 -1 -17 58 6 58 Items that can be reclassified to profit or loss Translation differences attributable to foreign operations -5 7 -31 Tax attributable to items that have been or may be reclassified to profit or loss 0 0 0 -5 7 -31 Other comprehensive income after tax 53 13 27 Comprehensive income for the year 181 89 317 Net profit for the year attributable to: Parent Company's shareholders 128 76 290 Comprehensive income for the year attributable to: Parent Company's shareholders 181 89 317 Number of shares at end of period, '000: - before dilution 25,140 24,658 25,140 - after dilution 25,459 25,003 25,459 Basic earnings/loss per share, SEK 5.05 3.05 11.55 Diluted earnings/loss per share, SEK 4.95 3.05 11.40 Number of own shares at end of period, '000 0 456 0 Weighted average number of shares, '000: - before dilution 25,037 24,567 24,765 - after dilution 25,360 24,914 25,096 Basic earnings/loss per share, SEK 5.15 3.10 11.70 Diluted earnings/loss per share, SEK 5.10 3.05 11.55 Weighted average number of own shares, '000 99 545 363 1) Straight-line amortisation/depreciation by asset class: - Intellectual property -9 -9 -38 -37 - Land and buildings -9 -4 -17 -10 - Equipment, tools, fixtures and fittings -11 -17 -61 -72 - Leased vehicles -47 -68 -210 -249 Total -76 -98 -326 -368	Fourth quarter	Full year
2,713 32 -1,964 -422 -89 270 11 -47 19 -17 253 -97 156 7 -1 6 2
0 2 8 164 156 164 24,658 25,003 6.30 6.25 456 24,748 25,106 6.30 6.20 354

Consolidated Statement of Financial Position, Summary

SEK M	31/12 2013	31/12 2012
Assets
Non-current assets
Intangible assets
Intellectual property	190	214
Goodwill	259	281
	449	495
Property, plant and equipment
Land and buildings Construction in progress	94 8	119 2
Equipment, tools, fixtures and fittings	297	308
Leased vehicles 1)	1,389	1,339
	1,788	1,768
Long-term investments
Financial investments	362	331
Non-current receivables 2)	27	52
	389	383
Deferred tax assets	66	81
Total non-current assets	2,692	2,727
Current assets
Inventories, merchandise	2,268	2,084
Current receivables
Other receivables 1)	980	969
Cash and cash equivalents 2)	155	62
Total current assets	3,403	3,115
Total assets	6,095	5,842
Equity and liabilities
Equity
Share capital Other contributed capital	251 47	251 47
Reserves	-53	-22
Retained earnings including net profit for the year	1,578	1,310
Total equity	1,823	1,586
Non-current liabilities
Debenture loan 3)	28	28
Interest-bearing liabilities 3)	122	97
Other liabilities and provisions 4)	1,261	1,390
	1,411	1,515
Current liabilities
Interest-bearing liabilities 3)	162	199
Other liabilities and provisions	2,699 2,861	2,542 2,741
Total equity and liabilities	6,095	5,842
Assets
1) Of which interest-bearing	228	196
2) Interest-bearing	182	114
Liabilities
3) Interest-bearing	312	324
4) Of which interest-bearing	507	556

Statement of Changes in Group Equity, Summary

SEK M	31/12 2013	31/12 2012
Opening balance	1,586	1,813
Effect of change of accounting policy, IAS 19	-	-177
Adjusted opening balance	1,586	1,636
Cash dividend to shareholders	-148	-238
Exercised warrants	0	1
Acquisitions with own shares	-	73
Divestment of own shares	68	-
Buy-back of own shares	-	-50
Comprehensive income for the year	317	164
Closing balance	1,823	1,586

Consolidated Statement of Cash Flows

	Fourth quarter		Full year
SEK M	2013	2012	2013	2012
Operating activities
Profit before tax	155	108	367	253
Depreciation/amortisation and impairment losses	80	98	330	368
Other items not affecting cash	-26	28	-30	100
Tax paid	-31	-38	-65	-84
Change in inventories	-291	-244	-286	225
Change in operating receivables	-129	-61	-58	32
Change in operating liabilities	208	205	115	-178
Cash flow from operating activities	-34	96	373	716
Investing activities
Acquisition of non-current assets (intangible and property,
plant and equipment)	-35	-50	-105	-155
Disposal of non-current assets (intangible and property,
plant and equipment)	3 -175	19 -122	4 -700	26 -488
Acquisition of leased vehicles	67	37	511	347
Disposal of leased vehicles
Operating cash flow	-174	-20	83	446
Acquisition of financial assets	0	9	0	-8
Disposal of financial assets	16	5	27	7
Acquisition of subsidiary/operation, net	-2	-16	-27	-220
Disposal of subsidiary/operation, net	-2	0	35	28
Cash flow after net investments	-162	-22	118	253
Financing activities
Borrowings	0	0	0	375
Repayment of loans	0	0	0	-375
Change in overdraft facility	3	33	55	-78
Exercised warrants	0 0	1 10	0 0	1 73
Acquisitions with own shares Divestment of own shares	45	0	68	0
	0	0	0	-50
Buy-back of own shares Dividend paid to Parent Company's shareholders	0	0	-148	-238
Cash flow from financing activities	48	44	-25	-292
Change in cash and cash equivalents, excl. translation
differences	-114	22	93	-39
Exchange difference in cash and cash equivalents	0	-2	0	4
Change in cash and cash equivalents	-114	20	93	-35
Cash and cash equivalents at start of year	269	42	62	97
Cash and cash equivalents at year-end	155	62	155	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 and liabilities, valuation level 2, have per year-end been valuated to fair value. The fair value is marginal, as the currency derivatives do not represent a significant item. The valuation has affected the result 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	1/12	2/12	3/12	4/12	1/13	2/13	3/13	4/13
Net turnover, SEK M	4,562	4,742	3,824	4,534	4,048	4,575	4,155	4,878
Operating profit excl. items affecting
comparability, SEK M	77	62	53	139	45	95	96	159
Operating margin excl. items affecting
comparability, %	1.7	1.3	1.4	3.0	1.1	2.1	2.3	3.2
Operating profit, SEK M	77	59	22	112	45	90	76	157
Operating margin, %	1.7	1.3	0.6	2.5	1.1	2.0	1.8	3.2
Profit before tax, SEK M	73	54	18	108	54	85	73	155
Profit/loss for the period, SEK M	50	38	-8	76	44	64	54	128
Rate of capital turnover, times 1)	3.35	3.28	3.22	3.12	3.04	3.03	3.07	3.06
Return on capital employed, % 1)	19.4	16.5	13.9	12.3	11.6	13.0	15.3	17.7
Return on equity, % 1)	22.8	15.0	10.8	9.1	9.4	11.4	15.2	17.0
Net debt/equity, times	0.19	0.36	0.34	0.36	0.30	0.31	0.23	0.22
Equity/assets ratio, %	30	27	28	27	30	27	28	30
Interest coverage ratio, times 1)	9.1	8.1	6.8	6.4	5.9	6.6	7.5	6.3
Data per share (SEK)
Earnings/loss for the period	2.05 2 )	1.50 4 )	-0.35 6 )	3.10 8 )	1.80 10)	2.60 12)	2.15 14)	5.15 16)
Equity	70 3 )	61 5 )	61 7 )	64 9 )	65 11)	62 13)	64 15)	72 17)
Operating cash flow	14.35 2 )	3.20 4 )	1.25 6 )	-0.75 8 )	3.65 10)	5.55 12)	1.20 14)	-7.05 16)

1 ) Rolling 12 months.

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

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

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

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

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

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

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

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

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

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

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

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

14) Based on weighted average number of shares outstanding during third quarter, 24,684,972.

15) Based on number of shares outstanding at 30 September 2013, 24,841,194.

16) Based on weighted average number of shares outstanding during fourth quarter, 25,036,534.

17) Based on number of shares outstanding at 31 December 2013, 25,139,592.

Income Statement for Parent Company

	Fourth quarter		Full year
SEK M	2013	2012	2013	2012
Net turnover	103	88	401	381
Administrative expenses	-116	-101	-446	-422
Operating loss 1)	-13	-13	-45	-41
Result from financial items
Income from interests in Group companies	-41	-48	-41	-46
Interest income from Group companies	6	6	24	32
Other interest income and similar line items	24	2	29	5
Interest expenses to Group companies	0	0	0	-2
Interest expenses and similar line items	-27	-3	-40	-9
Loss after financial items	-51	-56	-73	-61
Appropriations	272	229	272	229
Profit before tax	221	173	199	168
Tax	-56	-57	-55	-57
Net profit for the year	165	116	144	111
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	-3	-4	-12	-12
- Equipment, tools, fixtures and fittings	0	0	-2	-1

Balance Sheet for Parent Company, Summary

SEK M	31/12 2013	31/12 2012
Assets
Non-current assets
Intangible assets
Intellectual property	46	43
	46	43
Property, plant and equipment	11	3
Buildings Construction in progress	8	2
Equipment, tools, fixtures and fittings	9	8
	28	13
Long-term investments
Interests in Group companies	716	724
Other securities held as non-current assets	0	0
Other non-current receivables	20	25
Deferred tax asset	24	20
	760	769
Total non-current assets	834	825
Current assets Current receivables
Receivables from Group companies	715	716
Other receivables	94	95
Cash and bank balances	83	0
Total current assets	892	811
Total assets	1,726	1,636
Equity and liabilities
Equity
Restricted equity
Share capital	251	251
Statutory reserve	47	47
	298	298
Non-restricted equity
Share premium reserve	47	47
Retained earnings including net profit for the year	829	765
	876 1,174	812 1,110
Total equity
Untaxed reserves	277	227
Provisions
Provisions for pensions and similar obligations	19	17
Deferred tax liability	1	0
	20	17
Non-current liabilities
Debenture loan	28	28
Other liabilities	5 33	5 33
Current liabilities
Liabilities to credit institutes	32	55
Liabilities to Group companies	24	29
Other liabilities	166	165
	222	249
Total equity and liabilities	1,726	1,636
Pledged assets and contingent liabilities for Parent Company
Pledged assets	534	447
Contingent liabilities	1,356	1,153