Everything to do with our finances. And then some.

Report for the first six months of 2015

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Notable events during 2015

Second quarter

During the month of June, Bilia reached an agreement to acquire Kaiser Bil AB, a Lexus dealer. The business is run from four facilities in Stockholm and Malmö and accounts for about 45 per cent of Lexus's total sales in Sweden. The date of possession will be 1 October 2015. The Kaiser Group's turnover in 2014 amounted to SEK 260 M and operating profit was SEK 9 M. The Kaiser Group's capital employed, plus agreed-on surplus values, amounts to about SEK 100 M.
Bilia concluded agreements on the sale of the operation in Denmark with several different buyers. At the end of the second quarter the buyers had taken possession of the operation in four of the facilities. The date of possession of the remaining operation in Nærum is 1 August 2015. The total cost of selling the Danish operation is estimated at about SEK 101 M after tax.
Bilia accepted an offer from Alecta to redeem the Swedish pension liability for ITP 2 as per 1 May 2015. As a result of the deal, the profit for the period was improved during the second quarter by SEK 154 M (operating profit SEK +197 M and tax SEK -43 M). The deal also had a net effect on other comprehensive income of SEK +21 M. The total effect on comprehensive income for the period was an increase of SEK 175 M, while net debt decreased by about SEK 180 M.
The 2015 Annual General Meeting passed a resolution to divide the company's outstanding shares so that each existing share is split into 2 new shares. The record date for the stock split was 28 May 2015. Due to the stock split, the calculation of basic and diluted earnings per share has been adjusted retroactively for the reported periods.

First quarter

Bilia's Board of Directors decided in March that the operation in Denmark was to be sold or shut down.
In January, Bilia concluded an agreement to acquire all the shares in Toyota Hell Bil AS and Toyota Horten Tønsberg AS. The business is run from seven rented facilities and is concentrated to Trondheim and Tønsberg outside Oslo. Annual turnover is about SEK 1.0 bn, and for the past 4 years the business has reported an operating profit of about SEK 25 M. The official date of possession was 2 March 2015.

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

The decision to sell or shut down Bilia's Danish operation is being handled in the accounts as from 2015 as a discontinued operation. The operation's operating profit and an estimated loss on disposal are recognised as an item in the Income Statement under "Discontinued operation". The Group's comparison figures have been adjusted, whereby Bilia's Danish operation has been adjusted from all line items and only net profit/loss from the operation has been recognised on the line "Profit/loss from discontinued operation, net after tax".

Second quarter 2015

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

Net turnover amounted to SEK 5,381 M (4,819). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 370 M or 8 per cent. The increase is attributable to sales of both cars and service.

Operating profit amounted to SEK 384 M (126). If items affecting comparability are excluded, the profit was SEK 187 M (126). The improvement is mainly attributable to the Service Business and sales of used cars. Underlying Group overheads increased by about 4 per cent compared with last year. Overheads amounted to 12.4 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 (5).

Net financial items amounted to SEK-1 M (-4). The improvement compared with last year is mainly attributable to lower net debt during the quarter.

Tax for the period amounted to SEK-87 M (-23), which is equivalent to a tax rate of 23 per cent.

Net profit for the period for continuing operations amounted to SEK 296 M (99) and earnings per share to SEK 5.85 (1.95). Exchange rate changes affected the profit marginally.

Profit from discontinued operation, net after tax, amounted to SEK 1 M (loss: 12). The profit stems partly from the operation's earnings during the quarter and partly from adjustment of the provision that was estimated in the first-quarter accounts. Agreements have been reached with four different buyers on sale of the operations in all five facilities. The date of possession for the operations in four of the facilities was 1 June 2015, while the date of possession for the remaining facility will be 1 August 2015.

Profit for the period was SEK 297 M (87) and earnings per share SEK 5.90 (1.70). Exchange rate changes reduced the profit by SEK 1 M.

Total assets decreased by SEK 351 M, amounting to SEK 6,970 M. The decrease is mainly attributable to cash and cash equivalents.

Equity increased by SEK 5 M, amounting to SEK 1,765 M. Dividends of SEK 302 M were paid to the shareholders. The equity/assets ratio amounted to 25 per cent (28).

Acquisition of non-current assets amounted to SEK 38 M (33). Replacement investments represented SEK 12 M (10), expansion investments SEK 8 M (12), environmental investments SEK 2 M (0) and investments in new construction and additions to properties SEK 16 M (6), while finance leases amounted to SEK 0 M (5).

Operating cash flow amounted to SEK 198 M (118). After acquisitions and disposals of operations and change in interest-bearing receivables, cash flow amounted to SEK 204 M (104). Net debt decreased by SEK 17 M during the quarter, amounting to SEK 75 M. Net debt was reduced by SEK 302 M by the dividend payment and increased by about SEK 180 M by redemption of the pension liability.

Liquidity remains good, and at the end of June a debt to the banks of SEK 306 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 900 M.

The number of employees declined by 115 during the quarter to 3,591 persons. The change is attributable to Denmark, where the number of employees decreased by 147 during the quarter.

First six months 2015

Net turnover amounted to SEK 10,096 M (9,110). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 690 M or 8 per cent. The increase is attributable to sales of both cars and service.

Operating profit amounted to SEK 541 M (227). If items affecting comparability are excluded. the profit was SEK 340 M (227). The improvement is attributable to both the Car and Service Businesses. Underlying Group overheads increased by about 4 per cent compared with last year. Overheads amounted to 12.7 per cent in relation to net turnover, which was 0.3 percentage point lower compared with last year. In view of the earnings level during the first six months, provision was made for employee bonuses of SEK 13 M (9).

Net financial items amounted to SEK -4 M (-9). The improvement compared with last year is mainly attributable to lower net debt.

Tax for the period amounted to SEK-116 M (-37), which is equivalent to a tax rate of 22 per cent.

Net profit for the period for continuing operations amounted to SEK 421 M (181) and earnings per share to SEK 8.35 (3.60). Exchange rate changes affected the profit marginally.

Loss from discontinued operation, net after tax, amounted to SEK 101 M (loss: 20). The loss stems partly from the operation's loss during the first six months and partly from an estimated loss on disposal. Most of the operation has been disposed of, but the estimated loss on disposal may be adjusted during the second half of 2015.

Profit for the period was SEK 320 M (161) and earnings per share SEK 6.35 (3.20). Exchange rate changes reduced the profit by SEK 7 M.

Acquisition of non-current assets amounted to SEK 76 M (125). Replacement investments represented SEK 24 M (26), expansion investments SEK 12 M (22), environmental investments SEK 3 M (0) and investments in new construction and additions to properties SEK 35 M (71), while finance leases amounted to SEK 2 M (6).

Operating cash flow amounted to SEK 319 M (142). After acquisitions and disposals of operations and change in interest-bearing receivables, cash flow amounted to SEK 178 M (103). Net debt increased by SEK 145 M during the first six months, amounting to SEK 75 M.

Items affecting comparability

	Second quarter		First six months		July 14 -	Full year
Continuing operations, SEK M	2015	2014	2015	2014	June 15	2014
Operating profit excl. items affecting comparability Items affecting comparability	187	126	340	227	666	553
- Gain from sale of operation, other	0		4		17	13
- Redemption of PRI liability	197		197		197
- Impairment	O		Ω		-4	-4
Operating profit	384	126	541	227	876	562
Profit before tax excl. items affecting comparability Items affecting comparability	186	122	336	218	664	546
- Gain from sale of operation, other	0		4		17	13
- Redemption of PRI liability	197		197		197
- Impairment	o		O		$-4$
Profit before tax	383	122	537	218	874	555

"Redemption of PRI liability" of SEK 197 M pertains to the earnings effect before tax of the transfer of the Swedish pension liability to Alecta. "Gain from sale of operation" pertains to the sale of Bilia's operation in S

		Order backlog
No. of new	Second quarter		First six months			Full year July $14 -$		30 June
cars	2015	2014	2015	2014	June $15$	2014	2015	2014
Sweden	8,776	8,666	16,167	14,829	30,801	29,463	5,967	5,045
Norway ¹⁾	2.389	2,255	3.911	3,968	8,224	8,281	1,518	1,389
Total	11.165	10,921	20,078	18,797	39,025	37,744	7.485	6,434

Continuing operations (The Bilia Group excluding Denmark)

¹⁾ Toyota is included in deliveries during the quarter with 465 (-) and during the first six months with 647 (-) and in order backlog with 235 (-).

			Net turnover					Operating profit/loss excl. items affecting comparability, operating margin
	Second quarter		First six months		July $14 -$	Full year	Second quarter			First six months				Full year July 14 -
SEKM	2015	2014	2015	2014	June 15	2014	2015	$\%$	2014	%	2015	$\%$	2014	$\frac{9}{6}$	June 15	2014	$\frac{9}{6}$
Sweden	3.729	3.505	.194	6,538	13,766	13,110	144	3.9	107	3.0	283	3.9	188	2.9	553	458	3.5
Norway	1,636	1,315	2.884	2.573	5.635	5.324	54		32	2.5	84	2.9	64	2.5	167	147	2.8
Total Cars	5,365	4.820	10.078	9.111.	19.401	18.434	198		139	2.9	367	3.6	252	2.6	720	605	3.3
Parent Company, other	16		18		31		-11		$-13$		$-27$		$-25$		$-54$	$-52$
Total	5,381	4.819	10,096	9.110	19.432	18.446	187		126	2.6	340	3.4	227	2.5	666	553	3.0

Strong earnings in both Sweden and Norway
Higher closing order backlog

The market for new cars increased during the quarter by 10 per cent in Sweden and 9 per cent Norway.

The Group reported an operating profit, excluding items affecting comparability, of SEK 187 M (126) and an operating margin of 3.5 per cent (2.6). The Service Business reported a profit that was SEK 27 M better, and the Car Business reported a profit that was SEK 29 M better, compared with last year. The order backlog declined during the quarter, but was still 1,051 cars higher at the end of the period compared with last year.

The operation in Sweden reported an operating profit of SEK 144 M (107), with an operating margin of 3.9 per cent (3.0). The Car Business reported a profit that was SEK 24 M better than last year. Sales of used cars developed very positively and the profit improved by SEK 19 M, due to higher turnover, a higher gross profit margin and lower relative costs. Deliveries of new cars increased by only 1 per cent, due mainly to the fact that Bilia's deliveries of Volvo cars were at a very high level during the second quarter of last year. The Service Business reported a profit that was SEK 10 M better than last year. The improvement is mainly attributable to higher turnover.

The operating profit in Bilia's Norwegian operation amounted to SEK 54 M (32) and the operating margin to 3.3 per cent (2.5). The improvement is mainly attributable to the Service Business, which reported a profit that was SEK 17 M better than last year. The implementation of the Personal Service Technician concept, which was introduced in 2012, has developed positively with both higher customer satisfaction and improved earnings. The operating margin improved during the quarter, amounting to 9.6 per cent, due mainly to higher turnover and lower relative costs. The Car Business reported a profit that was SEK 5 M better than last year. The improvement is attributable to used cars sales, which reported strong earnings during the quarter, due mainly to increased turnover and a higher gross profit margin. Stocks of used cars remained unchanged during the quarter and are at a good level. The integration of the Toyota operation, which is included in the Group as from March 2015, developed very positively during the second quarter.

Continuing operations – divided into Service, Car and Fuel Businesses

			Net turnover ¹⁾				Operating profit, operating margin
	Second quarter		First six months		July 14 -	Full year	Second quarter		First six months		July 14 -	Full year
SEKM	2015	2014	2015	2014	June 15	2014	2015	2014	2015	2014	June 15	2014
Service Business	1.124	1,008	2.172	1,981	4,172	3,981	103	76	205	168	439	402
- margin, %							9.1	7.5	9.4	8.5	10.5	10.1
Car Business	4.139	3,726	7.776	6.971	14,937	14,132	89	60	148	76	257	185
- margin, %							2.2	1.6	1.9	1.1	1.7	1.3
Fuel Business	279	284	506	527	1,030	1,051	b		14		24	18
- margin, %							2.3	1.31	2.9	1.6	2.31	1.71

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

		Second quarter		First six months
Per cent	Norway Sweden		Total	Sweden	Norway	Total
Change from last year
Underlying turnover	6.1	6.3	6.1	6.4	4.4	5.9
Calendar effect	$-1.7$	0.0	$-1.3$	$-0.8$	0.0	$-0.6$
Adjusted turnover	4.4	6.3	4.8	5.6	4.4	5.3

• Improved earnings in both Car and Service businesses

• Strong growth in the Service Business

The Service Business reported a profit that was SEK 27 M better than last year. The improvement is mainly attributable to higher sales and lower relative costs. The operation in Norway developed positively and reported an adjusted turnover increase of 6 per cent, while Sweden reported an increase of 4 per cent. The number of working days was unchanged in Norway, while it was one day more in Sweden compared with the same quarter last year.

The Car Business's deliveries of new cars increased during the quarter by 2 per cent and deliveries of used cars by 5 per cent for comparable operations. Orders received for new cars increased by 2 per cent compared with last year. Earnings from sales of new cars improved by SEK 5 M, due mainly to higher turnover and a slightly higher gross profit margin. Earnings from sales of used cars improved by SEK 24 M, amounting to SEK 43 M. The improvement is mainly attributable to higher turnover and a higher gross profit margin.

Stocks of used cars decreased slightly during the quarter and are at good levels. The turnover rate for used cars increased, amounting to 10.8 times per year.

The Fuel Business is concentrated to Sweden, and earnings amounted to SEK 6 M (3). The improvement is attributable to a higher gross profit margin.

All values in the above graphs pertain to isolated quarters.

Discontinued operation

Cars Denmark

Bilia decided in March 2015 to discontinue its entire operation in Denmark. The comparison figures for the Consolidated Statement of Income and Other Comprehensive Income have been restated for 2014 to report the discontinued operation separately from the continuing operations. The criteria for presentation as a discontinued operation or for non-current assets held for sale were not fulfilled at 31 December 2014.

As per 30 June 2015, four of five facilities have been disposed of. An agreement on the sale of the operation in the remaining facility in Nærum was signed on 30 June 2015, with a date of possession of 1 August 2015. The operation in Nærum is recognised as an asset/liability held for sale and in the income statement as a discontinued operation.

Loss from discontinued operation

	First six months		Full year
SEK M	2015	2014	2014
Revenues	450	514	1,027
Expenses	$-661$	$-534$	$-1,094$
Loss before tax	$-211$	$-20$	$-67$
Tax	110
Loss after tax from dicontinued operation	-101	$-20$	$-67$

Discontinued operation
Basic earnings/loss per share, SEK	$-2.00$	$-0.40$	$-1.35$
Diluted earnings/loss per share, SEK	$-1.95$	$-0.35$	$-1.30$

Assets classified as held for sale

SEKM	30/6 2015
Property, plant and equipment	28
Inventories	37
Trade receivables and other receivables	93
Cash and cash equivalents	180
Total assets	338

Liabilities classified as held for sale

SFK M	30/6 2015
Trade payables and other liabilities	382
Deferred tax liability
Total liabilities	382

Net cash flows from discontinued operation

SEK M	First six months 2015

Cash flows from operating activities	-681
Cash flows from investing activities	57
Cash flows from financing activities	198
Net cash flows from discontinued operation

Acquisition of operation 2015

Toyota Hell Bil AS and Toyota Horten-Tønsberg AS

On 2 March 2015, Bilia acquired all the shares in Toyota Hell Bil AS and Toyota Horten-Tønsberg AS. The business is run from seven facilities and is concentrated to Trondheim and Tønsberg outside Oslo. Annual turnover is about SEK 1.0 bn, and for the past four years the operation has reported an operating profit of about SEK 25 M. The purchase consideration amounted to SEK 196 M. The entire purchase consideration was paid in cash. There is no contingent purchase consideration.

The acquisition enables Bilia to expand its offering with the Toyota and Lexus brands in Norway. Toyota, along with Volkswagen, is the market leader in Norway.

The business has about 225 employees and will continue to be operated from the present-day facilities.

Acquisition-related expenses amount to SEK 0.4 M and consist of fees to consultants for due diligence and have been recognized as "Other operating expenses".

Effects of the acquisition

Below is the final acquisition analysis, and the difference between the final acquisition analysis and the preliminary version that was presented during the first quarter of 2015 is shown in a separate column. 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
	Toyota Hell Bil AS	IFair	Fair value	Difference versus
	and Toyota Horten- value			recognised in preliminary acquisi-
SEK M	Tønsberg AS	adjustment	Group	tion analysis
Intangible assets		84	84
Property, plant and equipment	37	267	304
Long-term investments
Deferred tax asset
Inventories	80		80
Trade receivables and other receivables	33		33	-5
Cash and cash equivalents
Trade payables and other liabilities	102	301	403
Net identifiable assets and liabilities	51	50	101
Consolidated goodwill			95	-1
Purchase consideration paid, cash			196	-5
Less: Cash and cash equivalents in aquired operation
Net effect on cash and cash equivalents			195	-61

Acquired customer relations totalling SEK 62 M are recognised as intangible assets. Customer relations will be amortised over 10 years.

Acquired distribution rights totalling SEK 22 M are recognised as intangible assets. Distribution rights will be amortised 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 first quarter amounted to SEK 24 M (loss: 12). The profit has been charged with SEK 13 M pertaining to redemption of PRI liability.

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 quaranteed 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 2014 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.

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than from continuing use. An asset (or disposal group) is classified as held for sale if it is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable. These assets (or disposal groups) are recognised on a separate line as current assets or current liabilities in the Statement of Financial Position. On initial classification as held for sale, non-current assets (and disposal groups) are recognised at the lower of carrying amount and fair value less costs to sell. A discontinued operation is a component of the Group's business that represents a separate business segment or major line of business within a geographical area of operations or a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or, if earlier, when the operation meets the criteria to be classified as held for sale.

Profit or loss after tax from a discontinued operation is reported on a separate line in the Statement of Income and Other Comprehensive Income. When an operation is classified as discontinued, the presentation of the Consolidated Statement of Income and Other Comprehensive Income for the comparative year is changed so that the discontinued operation is recognised as if it had been discontinued at the start of the comparative year. The presentation of the Statement of Financial Position for the current and preceding year is not changed in a corresponding manner.

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 2015 will be published on 23 October 2015.

This interim report provides a true and fair summary of the Group's and the Parent Company's 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, 23 July 2015

Mats Qviberg Chairman

Jan Pettersson Deputy chairman Ingrid Jonasson Blank Board member

Jack Forsgren Board member

Mats Holgerson Board member

Svante Paulsson Board member

Jon Risfelt Board member Anna Engebretsen Board member

Gustav Lindner Board member

Patrik Nordvall Board member appointed by employee organisation

Tommy Strandhäll Board member appointed by employee organisation

Per Avander Managing Director, CEO and Board member

Gothenburg, 23 July 2015 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 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 23 July 2015 at 08:30 a.m..

Group's operating segments

First six months

	Service Car			Fuel Less: discontinued			Total		Segment reconciliation		Continuing operations
SEK M	2015	2014	2015	2014	2015	2014	operation 2015	2014	Cars 2015	2014	2015	2014	2015	2014
Net turnover
External sales	1,796	1,720	7,776	7,378	506	527		$-514$	10,078	9,111	18	$-1$	10,096	9,110
Internal sales	376	396						$-29$ $-543$	376	367	$-376$	$-367$ $-368$	10,096	9,110
Total net turnover	2,172	2,116	7,776	7,378	506	527			10,454	9,478	$-358$
Depreciation/amortisation	$-31$	$-27$	$-137$	$-125$	$-2$	$-2$		$\overline{5}$	$-170$	$-149$	$-13$	$-12$	$-183$	$-161$
Operating profit/loss	205	171	148	60	14	8		13	367	252	174	$-25$	541	227
Interest income Interest expenses													$-14$	4 $-24$
Shares in profits of associated companies			8	11					8	11			8	11
Profit before tax													537	218
Tax expense for the period													-116	$-37$
Profit for the period from continuing operations													421	181
Loss from discontinued operation, net after tax													$-101$	$-20$
Net profit for the period													320	161

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	2		2						4
- Redemption of PRI liability	13		52						65		132		197
- Structural costs etc.		$-5$		-1
Items of non-recurring nature	$\overline{15}$	$-5$	54	$\overline{1}$					69		132		201
Material items not affecting cash besides
depreciation/amortisation:
- Other	$-21$	$-26$	$-10$	$-14$	$\mathbf 0$	$\circ$			$-31$ $-31$	$-34$ $-34$	$-58$	38 38	-89
Total	$-21$	$-26$	$-10$	$-14$	$\Omega$	0					$-58$		$-89$	4
Assets
Interests in associated companies			355	355					355	355			355	355
Deferred tax assets Other assets													70 6,207	88 5,831
Assets held for sale													338
Total assets			355	355					355	355			6,970	6,274

Investments in non-current assets	33	70	538	575	$\mathbf{I}$	$\overline{c}$		$-72$	572	575	16	85	588	660
Liabilities
Equity													1,765	1,740
Liabilities													4,823	4,534
Liabilities attributable to assets held for sale													382 6,970	6,274
Total liabilities and equity

	Revenue from		Non-current
	external customers		assets
SEKM	2015	2014	2015	2014

Geographical segments
Sweden	7,212	6,540	3,048	3,031
Norway	2,884	2,573	854	500
Denmark, discontinued operation				83
Segment reconciliation	O		$-679$	$-750$
Total	10.096	9.110	3.223	2864

Denmark is recognised as from 2015 as a discontinued operation.

Group's operating segments con'd.

First six months
			Service						Car
	Sweden			Norway	Denmark		Sweden		Norway		De
SEKM	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	201

Net turnover
External sales	1,282	1,198	514	415		107	5,414	4,813	2,362	2,158
Internal sales	272	247	104	120		29
Total net turnover	1,554	1,445	618	535		136	5,414	4,813	2,362	2,158
Depreciation/amortisation	$-21$	$-20$	$-10$	$-5$		$-2$	$-126$	$-111$	$-11$	$-11$
Operating profit/loss	152	132	53	36		$\overline{\mathbf{3}}$	117	48	31	28
Shares in profits of associated companies							8	11

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			2						2
- Redemption of PRI liability	13						52
- Structural costs etc.						$-5$
Items of non-recurring nature	13		$\overline{c}$			$-5$	52		$\overline{c}$

Material items not affecting cash besides
depreciation/amortisation:
- Other	$-20$	$-22$	$-1$	$-1$		$^{\rm -3}$	$-11$	$-12$		ı
Total	$-20$	$-22$	$-1$	Ē1		$-3$	$-11$	$-12$
Assets
							355
Interests in associated companies								355
Invoctments in non-cussomt assorts	וח ד		22			п.	171	100	LЛ	7A

iark

$407$ 407

$-3$
-16

Consolidated Statement of Income and Other Comprehensive Income

	Second quarter		First six months		July 14 -	Full year
SEKM	2015	2014	2015	2014	June 15	2014
Continuing operations
Net turnover Costs of goods sold	5,381 $-4,531$	4,819	10,096	9,110	19,432	18,446
Gross profit	850	$-4,079$ 740	$-8,481$ 1,615	$-7,700$ 1,410	$-16,314$ 3,118	$-15,533$ 2,913
Other operating income	199	$\overline{c}$	204	3	221	20
Selling expenses	$-549$	$-504$	$-1,044$	$-965$	$-2,008$	$-1,929$
Administrative expenses	-116	$-111$	$-233$	$-220$	$-446$	$-433$
Other operating expenses	0	-1	-1	-1	-9	-9
Operating profit ¹⁾	384	126	541	227	876	562
Financial income	ı	$\overline{c}$	$\overline{2}$	$\overline{4}$	$\overline{4}$	6
Financial expenses	$-5$	$-12$	$-14$	$-24$	$-29$	$-39$
Shares in profits of associated companies Net financial items	3 $-1$	6 $-4$	8 $-4$	11 $-9$	23 $-2$	26 $-7$
Profit before tax	383	122	537	218	874	555
Tax	-87	$-23$	-116	$-37$	$-182$	$-103$
Profit for the period from continuing operations	296	99	421	181	692	452
Discontinued operation
Loss from discontinued operation,
net after tax	ı	-12	$-101$	$-20$	$-148$	$-67$
Net profit for the period	297	87	320	161	544	385
Other comprehensive income/loss
Items that cannot be reclassified to profit or loss
Revaluation of defined-benefit pension plans	26	-44	$-125$	$-44$	$-253$	$-172$
Tax attributable to items that cannot be reclassified
to profit or loss	-5	10	28	10	57	39
	21	$-34$	$-97$	$-34$	$-196$	$-133$
Items that can be reclassified to profit or loss
Translation differences attributable to foreign operations
Tax attributable to items that have been or may be	-11	8	-5	16	$-22$	-1
reclassified to profit or loss	0	0	0	0	O
	-11	8	$-5$	16	$-22$	-1
Other comprehensive income/loss after tax	10	$-26$	$-102$	$-18$	$-218$	$-134$

Comprehensive income for the period	307	61	218	143	326	251
Net profit for the period attributable to:
Parent Company's shareholders	297	87	320	161	544	385

Comprehensive income for the period
attributable to:
Parent Company's shareholders	307	61	218	143	326	251

Weighted average number of shares, '000: - before dilution	50,406	50,302	50,386	50,292	50,356	50,310
- after dilution	50,919	50,919	50,919	50,919	50,919	50,919
Basic earnings/loss per share, SEK	5.90	1.70	6.35	3.20	10.80	7.65
Diluted earnings/loss per share, SEK	5.85	1.75	6.30	3.20	10.70	7.60
Continuing operations
Basic earnings/loss per share, SEK	5.85	1.95	8.35	3.60	13.75	9.00
Diluted earnings/loss per share, SEK	5.80	1.95	8.25	3.55	13.60	8.90
¹⁾ Straight-line amortisation/depreciation by asset class:
- Intellectual property	$-13$	$-10$	$-24$	$-20$	-44	$-40$
- Land and buildings	$-4$	$-4$	$-7$	$-7$	$-22$	$-22$
- Equipment, tools, fixtures and fittings	$-18$	$-17$	$-36$	$-32$	$-61$	$-57$
- Leased vehicles	$-59$	$-51$	-116	$-102$	$-225$	$-211$
Total	$-94$	$-82$	$-183$	$-161$	$-352$	$-330$

Consolidated Statement of Financial Position, Summary

SEKM	30/6 2015	31/12 2014	30/6 2014
Assets
Non-current assets
Intangible assets
Intellectual property	241	177	191
Goodwill	331	259	264
	572	436	455
Property, plant and equipment
Land and buildings	111	100	157
Construction in progress	7
Equipment, tools, fixtures and fittings	321	321	316
Leased vehicles ¹⁾	1,847	1,637	1,534
	2,286	2,065	2,009
Long-term investments
Financial investments ¹⁾	362	381	369
Long-term receivables ²⁾	3	25	31
	365	406	400
Deferred tax assets	70	118	88
Total non-current assets	3,293	3,025	2,952

Current assets
Inventories, merchandise	2,126	2,250	2,123
Current receivables
Other receivables ¹⁾	1,032	1,064	1,084
Cash and cash equivalents ²⁾	181	616	115
Assets held for sale ¹⁾	338
Total current assets	3,677	3,930	3,322
Total assets	6,970	6,955	6,274

Equity and liabilities
Equity
Share capital	252	252	251
Other contributed capital	47	47	47
Reserves	$-59$	$-54$	$-37$
Retained earnings including net profit for the year	1,525	1,604	1,479
Total equity	1,765	1,849	1,740

Non-current liabilities
Debenture loan ³⁾	28	28	28
Interest-bearing liabilities ³⁾	56	64	80
Other liabilities and provisions ⁴⁾	1,411	1,864	1,472
	1,495	1,956	1,580
Current liabilities
Interest-bearing liabilities ³⁾	471	188	268
Other liabilities and provisions	2,857	2,962	2,686
Liabilities attributable to assets held for sale 4)	382
	3,710	3,150	2,954
Total equity and liabilities	6,970	6,955	6,274

Assets
¹⁾ Of which interest-bearing	537	377	383
²⁾ Interest-bearing	184	641	146
Liabilities
³⁾ Interest-bearing	555	280	376
⁴⁾ Of which interest-bearing	241	668	566

Statement of Changes in Group Equity, Summary

SEK M	30/6 2015	31/12 2014	30/6 2014
Opening balance	1,849	1,823	1,823
Cash dividend to shareholders	$-302$	$-226$	$-226$
Exercised warrants			$\overline{0}$
Comprehensive income for the period	218	251	143I
Closing balance	1,765	1,849	1,740

Consolidated Statement of Cash Flows

	Second quarter		First six months		July 14 -	Full year
SEKM	2015	2014	2015	2014	June 15	2014
Operating activities
Profit before tax from continuing operations	382	122	536	218	873	555
Loss before tax from discontinued operation	$-109$	$-12$	$-211$	$-20$	$-258$	$-67$
Depreciation and impairment losses from continuing operations	94	82	183	161	362	340
Depreciation and impairment losses from discontinued operation	$\Omega$	$\overline{c}$	2	4	7	9

Other items not affecting cash	-185	10	-89	4	-83	10
Tax paid	$-2$	$-37$	-36	$-91$	$-51$	$-106$

Change in inventories	111	121	129	213	$-14$	70
Change in operating receivables	30	$-129$	58	$-68$	59	$-67$
Change in operating liabilities	27	174	-113	50	392	555
Cash flow from operating activities	348	333	459	471	1,287	1,299

Investing activities
Acquisition of non-current assets (intangible and tangible)	-38	$-33$	-76	$-125$	$-146$	-195
Disposal of non-current assets (intangible and tangible)	23	$\overline{a}$	34	$\overline{a}$	108	78
Acquisition of leased vehicles	$-337$	$-384$	$-512$	$-535$	$-1,082$	$-1,105$
Disposal of leased vehicles	202	198	414	327	758	671

Operating cash flow	198	118	319	142	925	748

Investment in financial assets	$-22$	$-5$	$-23$	-5	$-25$	$-7$
Disposal of financial assets	22	$-4$	22	$\circ$	30	8
Acquisition of subsidiary/operation, net	6	$-13$	$-195$	$-42$	$-195$	$-42$
Disposal of subsidiary/operation, net	0	8	55	8	55	8

Cash flow after net investments	204	104	178	103	790	715

Financing activities
Borrowings	400	300	400	400	400	400
Repayment of loans	0	$-200$	0	$-300$	$-100$	$-400$
Change in overdraft facility	$-490$	33	-521	-17	$-533$	$-29$
Exercised warrants	0	$\Omega$	0	$\Omega$	ı	L.
Dividend paid to Parent Company's shareholders	$-302$	$-226$	$-302$	$-226$	$-302$	$-226$

Cash flow from financing activities	$-392$	-93	-423	$-143$	$-534$	$-254$
Change in cash and cash equivalents, excl. translation
differences	$-188$	11	$-245$	$-40$	256	461
Cash and cash equivalents recognised in assets held for sale	$-179$	$\circ$	$-180$	$\mathbf 0$	$-180$	$\mathbf 0$
	$-10$	$\mathbf 0$	$-10$
Exchange difference in cash and cash equivalents Change in cash and cash equivalents	$-377$	11	$-435$	$\circ$ $-40$	$-10$ 66	$\circ$ 461
Cash and cash equivalents at start of period	558	104	616	155	115	155
Cash and cash equivalents at end of period	181	115	181	115	181	616

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

	3/13	4/13	1/14	2/14	3/14	4/14	1/15	2/15
Continuing operations
Net turnover, SEK M	4,155	4,878	4,291	4,819	4,299	5,037	4,715	5,381
Operating profit excl. items affecting
comparability, SEK M	96	159	101	126	124	202	153	187
Operating margin excl. items affecting
comparability, %	2.3	3.2	2.3	2.6	2.9	4.0	3.2	3.5
Operating profit, SEK M	76	157	101	126	137	198	157	384
Operating margin, %	1.8	3.2	2.3	2.6	3.2	3.9	3.3	7.1
Profit before tax, SEK M	73	155	96	122	133	204	154	383
Interest coverage ratio, times ¹⁾	7.5	6.3	6.9	7.4	8.3	15.0	17.8	30.9
The Bilia Group
Profit/loss for the period, SEK M	54	128	74	87	105	119	23	297
Rate of capital turnover, times ¹⁾	3.07	3.06	3.12	3.12	3.10	3.06	2.99	2.99
Return on capital employed, % ¹⁾	15.3	17.7	18.7	19.4	21.0	19.8	21.8	31.7
Return on equity, $\%$ ¹⁾	15.2	17.0	18.9	20.0	22.2	21.0	18.5	30.5
Net debt/equity, times	0.14	0.14	0.13	0.23	$-0.09$	$-0.04$	0.05	0.04
Equity/assets ratio, %	28	30	31	28	28	27	24	25
Data per share (SEK)
Earnings/loss for the period	2) 1.05	$2.60$ ⁴⁾	6) 1.50	8) 1.70	$2.10^{10}$	$2.35$ ¹²⁾	$0.45$ ¹⁴⁾	5.90 $16$
Equity	3) 32	$36^{5}$	$38-7$	9) 35	$36^{11}$	$37^{13}$	$35^{15}$	$35^{17}$
Operating cash flow	2) 0.60	4) $-3.50$	6) 0.45	8) 2.35	$11.90$ ¹⁰⁾	$0.15$ ¹²⁾	$2.40^{14}$	$3.90^{16}$

For continuing operations, Bilia's Danish operation has been excluded for year 2014.

$1)$ Rolling 12 months.
$2)$ Based on weighted average number of shares outstanding during third quarter, 49,369,944.
$3)$ Based on number of shares outstanding at 30 September 2013, 49,682,388.
4) Based on weighted average number of shares outstanding during fourth quarter, 50,073,069.
$5)$ Based on number of shares outstanding at 31 December 2013, 50,279,184.
$^{6)}$ Based on weighted average number of shares outstanding during first quarter, 50,282,769.
$7$ Based on number of shares outstanding at 31 March 2014, 50,290,102.
8) Based on weighted average number of shares outstanding during second quarter, 50,301,686.
9) Based on number of shares outstanding at 30 June 2014, 50, 312, 326.
10) Based on weighted average number of shares outstanding during third quarter, 50,318,925.
$\bf{11)}$ Based on number of shares outstanding at 30 September 2014, 50, 330, 722.
$12)$ Based on weighted average number of shares outstanding during fourth quarter, 50,334,058.
$13)$ Based on number of shares outstanding at 31 December 2014, 50,348,066.
$14)$ Based on weighted average number of shares outstanding during first quarter, 50,366,845.
$15)$ Based on number of shares outstanding at 31 March 2015, 50, 393, 016.
$16)$ Based on weighted average number of shares outstanding during second quarter, 50,405,884.
$17)$ Based on number of shares outstanding at 30 June 2015, 50,418,122.

Income Statement for Parent Company

	Second quarter		First six months		July $14 -$	Full year
SEKM	2015	2014	2015	2014	June 15	2014
Net turnover	116	105	232	217	459	444
Administrative expenses	-140	$-117$	$-272$	$-241$	$-525$	$-494$
Operating loss ¹⁾	$-24$	$-12$	-40	$-24$	$-66$	$-50$

Result from financial items
Income from interests in Group companies	0	55	$\Omega$	55	$-100$	$-45$
Interest income from Group companies	5		10	15	17	22
Other interest income and similar line items					2
Interest expenses to Group companies	O	O	0	$\Omega$	$\Omega$	$\Omega$
Interest expenses and similar line items	$-3$	$-3$	$-5$	-6	$-9$	$-10$
Loss after financial items	$-22$	48	$-34$	42	$-156$	$-80$

Appropriations	$\Omega$	$\Omega$	0	$\Omega$	341	341
Profit before tax	$-22$	48	$-34$	42	185	261
Tax	0		5	6	$-62$	$-61$
Net profit for the period	$-22$	49	$-29$	48	123	200

¹⁾ Straight-line amortisation/depreciation by asset class:
- Intellectual property	-5	$-4$	-9	$-7$	$-17$	$-15$
- Buildings	0	$-1$	$-1$	$-1$	$-1$	$-1$
- Equipment, tools, fixtures and fittings	-1	$\Omega$	$-2$	$-1$	$-4$	$-3$
Total	$-6$	$-5$	$-12$	$-9$	$-22$	$-19$

$\circ$ $\circ$ archid

Balance Sheet for Parent Company, Summary

SEKM	30/6 2015	31/12 2014	30/6 2014
Assets
Non-current assets
Intangible assets
Intellectual property	49	47	45
	49	47	45
Property, plant and equipment
Buildings	23 6	23	20
Construction in progress Equipment, tools, fixtures and fittings	12	6 11	$\overline{c}$ 9
	41	40	31
Long-term investments
Interests in Group companies	679	679	750
Other securities held as non-current assets	0	0	0
Other non-current receivables		20	25
Deferred tax asset	38	33	29
	717	732	804
Total non-current assets	807	819	880
Current assets
Current receivables
Receivables from Group companies	40	493	24
Other receivables	108	298	123
Cash on hand and accrued deposits	861	351	546
Total current assets	1,009	1,142	693
Total assets	1,816	1,961	1,573
Equity and liabilities
Equity
Restricted equity
Share capital	252	252	251
Statutory reserve	47	47	47
	299	299	298
Non-restricted equity
Share premium reserve	47	47	47
Retained earnings including net profit for the year	472	803	651
	519	850	698
Total equity	818	1,149	996

Untaxed reserves	386	386	277

Provisions
Provisions for pensions and similar obligations Deferred tax liability	$\overline{\mathbf{c}}$	22 $\overline{c}$	21 1
	$\overline{2}$	24	22
Non-current liabilities
Debenture loan	28	28	28
Other liabilities	5	5	5
	33	33	33
Current liabilities
Liabilities to credit institutes	400		100
Liabilities to Group companies		204
Other liabilities	177	165	145
	577	369	245
Total equity and liabilities	1,816	1,961	1,573

Pledged assets and contingent liabilities for Parent Company Pledged assets	586		552
Contingent liabilities	945	567 1,597
			1,249