Bilia — Interim / Quarterly Report 2016

Apr 27, 2016

• Net turnover amounted to SEK 5,433 M (4,715).
• Operating profit excluding items affecting comparability amounted to SEK 185 M (153).
• The Group's net profit for the period was SEK 143 M (23) and earnings per share SEK 2,80 (0.45).
• Operating cash flow amounted to SEK 110 M (121).

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

"Demand for both cars and service was better compared with last year, and we reported strong earnings. The earnings improvement is mainly attributable to the Service Business, which boosted underlying turnover by more than 8 per cent and operating profit by SEK 28 M. The Car Business reported good earnings that were on a level with last year. The order backlog of new cars increased during the quarter. The financial position of the Group remains strong, and the company has issued bonds worth SEK 500 M. We believe that demand for cars and service during the second quarter of 2016 will be slightly better compared with the corresponding quarter last year."

	First quarter		April 15 -	Full year
	2016	2015	March 16	2015
Continuing operations
Net turnover, SEK M	5,433	4,715	21,161	20,443
Operating profit excl. items affecting
comparability, SEK M 1)	185	153	763	731
Operating margin excl. items affecting
comparability, %	3.4	3.2	3.6	3.6
Operating profit, SEK M	185	157	957	929
Operating margin, %	3.4	3.3	4.5	4.5
Profit before tax excl. items affecting
comparability, SEK M 1)	183	150	768	735
Profit before tax, SEK M	183	154	962	933
Net profit for the period / year, SEK M	143	125	749	731
Earnings per share, SEK 2)	2.80	2.50	14.80	14.50
The Bilia Group
Net profit for the period / year, SEK M	143	23	767	647
Earnings per share, SEK 2)	2.80	0.45	15.20	12.85

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

2) The number of shares used in the calculation is shown in the table on page 14.

The Bilia Group's earnings in 2015 were charged with closure costs for the Danish operation, see page 9.

• On 28 January 2016, Bilia concluded an agreement to acquire three car dealerships that conduct BMW, MINI and Toyota operations in Sweden. The companies have a combined annual turnover of about SEK 750 M, with a combined operating profit of about SEK 14 M per year. The date of possession was 1 March 2016.
• Bilia issued unsecured bonds worth a total of SEK 500 M with a term to maturity of five years. The bond issue carries a floating interest rate of STIBOR (3 months) plus 220 basis points and has a final maturity date in March 2021.
• On 11 March 2016, Bilia concluded an agreement to sell its Ford operations in Gothenburg, Kungsbacka and Stockholm to Hedin Bil. The agreement is contingent upon the approval of the Swedish Competition Authority. The planned date of possession for the operations in Gothenburg and Kungsbacka is 1 May 2016, and for the Stockholm operation not later than 31 December 2017.

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

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

Net turnover amounted to SEK 5,433 M (4,715). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 400 M or 9 per cent. The increase is attributable to both car sales and service.

Operating profit amounted to SEK 185 M (157). If items affecting comparability are excluded, the profit was SEK 185 M (153). The improvement is attributable to the Service Business, which boosted underlying turnover by nearly 8 per cent. The Car Business reported strong earnings on a level with last year. Underlying Group overheads increased by about 3 per cent compared with last year. Overheads amounted to 12.6 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 (8).

Net financial items amounted to SEK -2 M (-3).

Tax for the period amounted to SEK -40 M (-29), and the effective tax rate was 22 per cent (19).

Net profit for the period was SEK 143 M (23) and earnings per share SEK 2.80 (0.45). Exchange rate changes reduced the profit by SEK 3 M.

Total assets increased by SEK 1,099 M during the quarter, amounting to SEK 8,528 M. The increase is mainly attributable to acquisitions of operations in Sweden and in Luxembourg.

Equity increased by SEK 155 M during the quarter, amounting to SEK 2,211 M. The equity/assets ratio amounted to 26 per cent (24).

Acquisition of non-current assets amounted to SEK 60 M (38). Replacement investments represented SEK 11 M (12), expansion investments SEK 8 M (4), environmental investments SEK 0 M (1) and investments in new construction and additions to properties SEK 36 M (19), while finance leases amounted to SEK 5 M (2).

Operating cash flow amounted to SEK 110 M (121). After acquisitions and disposals of operations and change in interest-bearing receivables, cash flow amounted to SEK -143 M (-26). Net debt increased by SEK 412 M during the quarter, amounting to SEK 735 M. The increase is attributable to acquisitions of operations.

Liquidity remains good, and at the end of March a debt to the banks of SEK 309 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 1,500 M.

The number of employees increased by 347, amounting to 3,960 persons. Acquisitions of operations increased the number of employees by 277 during the quarter.

	First quarter		April 15 -	Full year
Group, SEK M	2016	2015	March 16	2015
Operating profit excl. items affecting
comparability	185	153	763	731
Items affecting comparability
- Gain from sale of operation, other	0	4	2	6
- Redemption of PRI liability	0	0	197	197
- Structural costs etc.	0	0	-5	-5
Operating profit	185	157	957	929
Profit before tax excl. items affecting
comparability	183	150	768	735
Items affecting comparability
- Gain from sale of operation, other	0	4	2	6
- Redemption of PRI liability	0	0	197	197
- Structural costs etc.	0	0	-5	-5
Profit before tax	183	154	962	933

Last year's gain from sale of operation during the quarter pertains to the sale of Bilia's operation in Stavanger.

		Deliveries	Order backlog
No. of new	First quarter		April 15 -	Full year	31 March
cars	2016	2015	March 16	2015	2016	2015
Sweden 1)	8,208	7,391	33,363	32,546	7,942	6,959
Norway	2,045	1,522	8,834	8,311	2,400	1,708
Western Europe 2)	231	0	476	245	1,029	-
Total	10,484	8,913	42,673	41,102	11,371	8,667

1) Kaiser Bil is included in deliveries during the quarter with 125 (-) and with 181 (-) in order backlog.

BMW-, MINI- and Toyota acquisitions is included in deliveries during the quarter with 89 (-) and with 202 (-) in order backlog. 2) Tyskland is included in deliveries during the quarter with 231 (-) and with 137 (-) in order backlog.

Luxembourg is included with 892 (-) in order backlog.

			Net turnover		Operating profit/loss excl. items affecting comparability , operating margin
	First quarter		April 15 -	Full year		First quarter			April 15 -	Full year
SEK M	2016		2015 March 16	2015	2016	%	2015	%	March 16	2015	%
Sweden	3,853	3,465	14,901	14,513	155	4.0	139	4.0	645	629	4.3
Norway	1,441	1,248	5,931	5,738	40	2.8	30	2.4	169	159	2.8
Western Europe	137	0	310	173	1	0.6	0	-	2	1	0.4
Total Cars	5,431	4,713	21,142	20,424	196	3.6	169	3.6	816	789	3.9
Parent Company, other	2	2	19	19	-11	-	-16	-	-53	-58	-
Total	5,433	4,715	21,161	20,443	185	3.4	153	3.2	763	731	3.6

Strong earnings in Sweden

Higher closing order backlog

The market for new cars increased during the quarter by 10 per cent in Sweden, 5 per cent in Norway and 5 per cent in our markets in Western Europe.

The Group reported an operating profit, excluding items affecting comparability, of SEK 185 M (153) and an operating margin of 3.4 per cent (3.2). The Service Business reported a profit that was SEK 28 M greater, while the Car Business reported a profit that was SEK 1 M less, compared with last year. The order backlog increased by 2,067 cars during the quarter (1,094 of which are attributable to acquired operations), amounting to 11,371 cars at the end of the quarter.

The operation in Sweden reported an operating profit of SEK 155 M (139), with an operating margin of 4.0 per cent (4.0). The Service Business reported a profit that was SEK 16 M better than last year. The improvement is mainly attributable to higher turnover. The Car Business reported unchanged earnings compared with last year. Earnings from sales of both new and used cars were on a level with last year. Stocks of used cars remained at a good level.

The operating profit in Bilia's Norwegian operation amounted to SEK 40 M (30) and the operating margin to 2.8 per cent (2.4). The Service Business developed well and reported SEK 11 M more in earnings than last year. The improvement is mainly attributable to higher turnover and a slightly higher gross profit margin. Deliveries of new cars increased during the quarter, and the profit improved by SEK 4 M. Earnings from sales of used cars decreased by SEK 5 M, amounting to SEK 4 M, mainly due to a lower gross profit margin. Stocks of used cars declined during the quarter, but were slightly too high at the end of the quarter.

The operations in Western Europe reported earnings of SEK 1 M attributable to the Service Business. Germany reported a profit of SEK 2 M, while acquisition costs of SEK 1 M were charged to Bilia's holding company that acquired the BMW and MINI operation in Luxembourg as per 31 March 2016.

		Net turnover 1)				Operating profit, operating margin
	First quarter		April 15 -	Full year	First quarter		April 15 -	Full year
SEK M	2016	2015	March 16	2015	2016	2015	March 16	2015
Service Business	1,223	1,048	4,666	4,491	130	102	507	479
- margin, %					10.6	9.7	10.9	10.7
Car Business	4,219	3,637	16,276	15,694	58	59	285	286
- margin, %					1.4	1.6	1.8	1.8
Fuel Business	224	227	1,018	1,021	8	8	24	24
- margin, %					3.6	3.6	2.4	2.4

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

	First quarter
Per cent	Sweden	Norway
Change from last year
Underlying turnover	6.3	11.2	7.6
Calendar effect	1.6	3.2	2.0
Adjusted turnover	7.9	14.4	9.6

Better earnings and strong growth in the Service Business

Unchanged earnings for the Car Business

The Service Business reported a profit that was SEK 28 M higher 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 14 per cent, while Sweden reported an increase of 8 per cent. There was one less working day in Sweden and two less in Norway compared with the same quarter last year.

The Car Business's deliveries of new cars increased for comparable operations during the quarter by 10 per cent and deliveries of used cars were unchanged compared with last year. Orders received for new cars increased by 1 per cent compared with last year. Earnings from sales of new cars improved by SEK 2 M, due mainly to higher turnover and lower relative costs. Earnings from sales of used cars declined by SEK 3 M, mainly due to a lower gross profit margin, amounting to SEK 21 M. Stocks of used cars decreased slightly for comparable operations during the quarter and are at good levels overall. The turnover rate for used cars decreased marginally, amounting to 10.7 times per year.

The Fuel Business is concentrated to Sweden, and earnings amounted to SEK 8 M (8).

All values in the above graphs pertain to isolated quarters.

On 1 March 2016, Bilia acquired three car dealerships that conduct BMW, MINI and Toyota operations in Sweden. The dealerships are located in the following towns:

BMW – Trollhättan, Uddevalla and Strömstad

MINI – Trollhättan

Toyota – Kristianstad, Västerås, Enköping, Borlänge, Falun and Ludvika

The companies have a combined annual turnover of about SEK 750 M with an operating profit of SEK 14 M per year. The purchase consideration was SEK 58 M. The entire purchase consideration was paid in cash. There is no contingent purchase consideration.

Synergies can be found in a higher inventory turnover rate, which is expected to reduce capital employed by about SEK 30 M in 2016.

The businesses have about 115 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 acquisitions have the following effects on the Group's assets and liabilities. Since the parties have not yet approved the final accounts as per 29 February 2016, the acquired net assets and purchase consideration specified below are preliminary.

	Carrying amounts in BMW, MINI, Toyota	Fair value	Fair value recognised in
SEK M	dealership operations	adjustment	Group
Intangible assets	2	9	11
Property, plant and equipment	7	28	35
Deferred tax asset	0		0
Inventories	152	2	154
Trade receivables and other receivables	24		24
Cash and cash equivalents	4		4
Interest-bearing liabilities	103		103
Trade payables and other liabilities	78	30	108
Deferred tax liability		2	2
Net identifiable assets and liabilities	8	7	15
Consolidated goodwill			43
Purchase consideration paid, cash			58
Less: Cash and cash equivalents in aquired operations			4
Net effect on cash and cash equivalents			54

Acquired customer relations totalling SEK 9 M are recognised as intangible assets. Customer relations will be amortised over 10 years.

On 31 March 2016, Bilia took possession of Arnold Kontz's BMW and MINI operation in Luxembourg. The operation, which is centrally located in Luxembourg, accounts for about 50 per cent of total BMW sales in Luxembourg. The operation has an annual turnover of about SEK 1.1 bn with an operating profit of about SEK 45 M per year. The purchase consideration was SEK 314 M. Of the total purchase consideration, SEK 198 M was paid in cash and the remaining SEK 116 M will be paid with newly issued Bilia shares. Payment with the new shares is effected by offsetting of the debt to the seller. There is no contingent purchase consideration.

The acquisition gives Bilia a good platform for increasing the Group's presence in the region.

The business has about 145 employees and will continue to be operated from the presentday facilities.

There are, as per 31 March 2016, no external transaction costs or acquisition-related expenses attributable to the acquisition.

Effects of the acquisition

The acquisition has the following effects on the Group's assets and liabilities. Since the parties have not yet approved the final accounts as per 31 March 2016, the acquired net assets and purchase consideration specified below are preliminary.

SEK M	Carrying amounts in Arnold Kontz dealer- ship operation	Fair value adjustment	Fair value recognised in Group
Intangible assets		188	188
Property, plant and equipment	41		41
Inventories	132	3	135
Trade receivables and other receivables	65		65
Cash and cash equivalents	10		10
Interest-bearing liabilities	55		55
Trade payables and other liabilities	138		138
Deferred tax liability		57	57
Net identifiable assets and liabilities	55	134	189
Consolidated goodwill			125
Purchase consideration paid, cash			314
Less: Debt to the seller			116
Less: Cash and cash equivalents in aquired operation			10
Net effect on cash and cash equivalents			188

Acquired customer relations totalling SEK 188 M are recognised as intangible assets. Customer relations will be amortised over 10 years.

Bilia decided in March 2015 to discontinue its entire operation in Denmark. As per 31 December 2015, all five facilities have been disposed of.

	First quarter		Full year
SEK M	2016	2015	2015
Revenues	-	257	468
Expenses	-	-359	-609
Loss before tax	-	-102	-141
Tax	-	-	57
Loss after tax from dicontinued operation	-	-102	-84
Discontinued operation
Basic earnings/loss per share, SEK	-	-2.05	-1.65
Diluted earnings/loss per share, SEK	-	-2.00	-1.65

SEK M	31/3 2016	31/3 2015	31/12 2015
Property, plant and equipment	-	76	-
Inventories	-	157	-
Trade receivables and other receivables	-	57	-
Cash and cash equivalents	-	2	-
Total assets	-	292	-

SEK M	31/3 2016	31/3 2015	31/12 2015
Trade payables and other liabilities Deferred tax liability	- -	337 -	- -
Total liabilities	-	337	-

	First quarter		Full year
SEK M	2016	2015	2015
Cash flows from operating activities	-	-22	-137
Cash flows from investing activities	-	6	146
Cash flows from financing activities	-	16	-4
Net cash flows from discontinued operation	-	0	5

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 9 M (loss: 16). The improvement is mainly attributable to the fact that last year's earnings were charged with SEK 5 M in special payroll tax attributable to value increases on endowment policies.

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 2015 Annual Report.

The 2016 Annual General Meeting resolved to authorise the Board of Directors to increase the company's share capital and to issue new shares to be transferred to Société de Participations Financiéres Groupe Arnold Kontz (the company). The background is an agreement where Bilia acquires Arnold Kontz's BMW and MINI operation in Luxembourg, for which partial payment will be made with shares in Bilia. Payment will be made for the new shares by offsetting of the debt to the company of EUR 12,500,000. The debt will be converted to SEK and the exercise price will be set at 95 per cent of the average price of the Bilia share during the period 18-22 April 2016.

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.

Disclosures in accordance with IAS 34, paragraph 16, are made not only in the financial statements and notes, but also in other parts of the interim report.

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

The interim report for the second quarter of 2016 will be published on 27 July 2016.

Gothenburg, 27 April 2016 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 27 April 2016 at 08:30 a.m..

First quarter

	Service			Car		Fuel	Total			Segment		Group
								Cars		reconciliation
SEK M	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
Net turnover
External sales	988	849	4,219	3,637	224	227	5,431	4,713	2	2	5,433	4,715
Internal sales	235	199					235	199	-235	-199	-	-
Total net turnover	1,223	1,048	4,219	3,637	224	227	5,666	4,912	-233	-197	5,433	4,715
Depreciation/amortisation	-15	-13	-87	-68	-1	-1	-103	-82	-8	-7	-111	-89
Operating profit/loss	130	102	58	59	8	8	196	169	-11	-12	185	157
Interest income											7	1
Interest expenses											-14	-9
Shares in profits of associated companies			5	5			5	5			5	5
Profit before tax											183	154
Tax expense for the period											-40	-29
Profit for the year from continuing operations											143	125
Loss from discontinued operation,
net after tax											-	-102
Net profit for the period											143	23
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			-	4
Items of non-recurring nature	-	2	-	2	-	-	-	4	-	-	-	4
Material items not affecting cash besides
depreciation/amortisation:
- Other	-21	-15	-11	-8	0	0	-32	-23	32	119	0	96
Total	-21	-15	-11	-8	0	0	-32	-23	32	119	0	96
Assets
Interests in associated companies			382	375			382	375			382	375
Deferred tax assets											130	127
Other assets											8,016	6,527
Assets held for sale											-	292
Total assets			382	375			382	375			8,528	7,321
Investments in non-current assets	29	22	303	185	1	0	333	207	12	6	345	213
Liabilities
Equity											2,211	1,760
Liabilities											6,317	5,224
Liabilities attributable to assets held for sale											-	337
Total liabilities and equity											8,528	7,321

		Revenue from	Non-current
		external customers	assets
SEK M	2016	2015	2016	2015
Geographical segments
Sweden	3,855	3,467	3,723	2,984
Norway	1,441	1,248	816	879
Germany	137	-	409	-
Segment reconciliation	0	0	-848	-679
Total	5,433	4,715	4,100	3,184

	Service			Car
		Sweden		Norway		Western Europe		Sweden		Norway	Western Europe
SEK M	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
Net turnover
External sales	701	622	246	227	41		2,929	2,616	1,194	1,021	96
Internal sales	150	148	82	51	3
Total net turnover	851	770	328	278	44		2,929	2,616	1,194	1,021	96
Depreciation/amortisation	-11	-10	-3	-3	-1		-80	-62	-7	-6	0
Operating profit/loss	98	82	31	20	1		49	49	9	10	0
Shares in profits of associated companies							5	5
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
Items of non-recurring nature	-	-	-	2	-		-	-	-	2	-
Material items not affecting cash besides depreciation/amortisation: - Other	-20	-14	-1	-1	0		-13	-10	2	2	0
Total	-20	-14	-1	-1	0		-13	-10	2	2	0
Assets Interests in associated companies							382	375
Investments in non-current assets	21	5	8	17	0		272	179	31	6	0

	First quarter		April 15 -	Full year
SEK M	2016	2015	March 16	2015
Continuing operations
Net turnover	5,433	4,715	21,161	20,443
Costs of goods sold	-4,567	-3,950	-17,693	-17,076
Gross profit	866	765	3,468	3,367
Other operating income	1	5	213	217
Selling expenses	-559	-495	-2,208	-2,144
Administrative expenses	-120	-117	-496	-493
Other operating expenses	-3	-1	-20	-18
Operating profit 1)	185	157	957	929
Financial income	7	1	10	4
Financial expenses	-14	-9	-35	-30
Shares in profits of associated companies	5	5	30	30
Net financial items	-2	-3	5	4
Profit before tax	183	154	962	933
Tax	-40	-29	-213	-202
Profit for the period from continuing operations	143	125	749	731
Discontinued operation
Loss from discontinued operation,
net after tax	0	-102	18	-84
Net profit for the period	143	23	767	647
Other comprehensive income/loss
Items that cannot be reclassified to profit or loss
Revaluation of defined-benefit pension plans	0	-151	31	-120
Tax attributable to items that cannot be reclassified
to profit or loss	0	33	-7	26
	0	-118	24	-94
Items that can be reclassified to profit or loss
Translation differences attributable to foreign
operations	10	6	-41	-45
Tax attributable to items that have been or may be
reclassified to profit or loss	0	0	0	0
	10	6	-41	-45
Other comprehensive income/loss after tax	10	-112	-17	-139
Comprehensive income for the period	153	-89	750	508
Net profit for the period attributable to:
Parent Company's shareholders	143	23	767	647
Comprehensive income for the period attributable to:
Parent Company's shareholders	153	-89	750	508
Weighted average number of shares, '000:
- before dilution	50,663	50,367	50,479	50,406
- after dilution	50,732	50,919	50,872	50,919
Basic earnings/loss per share, SEK	2.80	0.45	15.20	12.85
Diluted earnings/loss per share, SEK	2.80	0.45	15.10	12.75
Continuing operations
Basic earnings/loss per share, SEK	2.80	2.50	14.80	14.50
Diluted earnings/loss per share, SEK	2.80	2.45	14.75	14.40
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	-13	-11	-50	-48
- Land and buildings - Equipment, tools, fixtures and fittings	-4 -20	-3 -18	-25 -68	-24 -66
- Leased vehicles	-74	-57	-271	-254
Total	-111	-89	-414	-392

SEK M	31/3 2016	31/12 2015	31/3 2015
Assets
Non-current assets
Intangible assets
Intellectual property	475	271	250
Goodwill	542	368	336
	1,017	639	586
Property, plant and equipment
Land and buildings	154	131	102
Construction in progress	11	8	6
Equipment, tools, fixtures and fittings	363	331	327
Leased vehicles 1)	2,162	2,048	1,755
Long-term investments	2,690	2,518	2,190
Financial investments 1)	390	384	382
Long-term receivables 2)	3	0	26
	393	384	408
Deferred tax assets	130	128	127
Total non-current assets	4,230	3,669	3,311
Current assets
Inventories, merchandise	2,977	2,564	2,134
Current receivables
Other receivables 1)	1,148	1,097	1,026
Cash and cash equivalents 2)	173	99	558
Assets held for sale 1)	-	-	292
Total current assets	4,298	3,760	4,010
Total assets	8,528	7,429	7,321
Equity and liabilities
Equity
Share capital	253	252	252
Other contributed capital	49	48	47
Reserves	-89	-99	-48
Retained earnings including net profit for the year	1,998	1,855	1,509
Total equity	2,211	2,056	1,760
Non-current liabilities
Debenture loan 3)	-	-	28
Bond issue 3)	496	-	-
Interest-bearing liabilities 3)	93	75	58
Other liabilities and provisions 4)	1,604	1,438	2,108
	2,193	1,513	2,194
Current liabilities
Debenture loan 3)	-	28	-
Interest-bearing liabilities 3)	691	688	121
Other liabilities and provisions	3,433	3,144	2,909
Liabilities attributable to assets held for sale 4)	-	-	337
	4,124	3,860	3,367
Total equity and liabilities	8,528	7,429	7,321
Assets
1) Of which interest-bearing	382	377	380
2) Interest-bearing	176	9 9	584
Liabilities 3) Interest-bearing
4) Of which interest-bearing	1,280	791	207
	1 3	8	849

SEK M	31/3 2016	31/12 2015	31/3 2015
Opening balance	2,056	1,849	1,849
Cash dividend to shareholders	-	-302	-
Exercised warrants	2	1	0
Comprehensive income for the period	153	508	-89
Closing balance	2,211	2,056	1,760

	First quarter		April 15 -	Full year
SEK M	2016	2015	March 16	2015
Operating activities
Profit before tax from continuing operations	183	154	962	933
Loss before tax from discontinued operation	0	-102	-39	-141
Depreciation and impairment losses from continuing operations	111	89	426	404
Depreciation and impairment losses from discontinued operation	0	2	0	2
Other items not affecting cash	0	96	-154	-58
Tax paid	-51	-34	-76	-59
Change in inventories	-101	18	-615	-496
Change in operating receivables	29	28	-8	-9
Change in operating liabilities	130	-140	529	259
Cash flow from operating activities	301	111	1,025	835
Investing activities
Acquisition of non-current assets (intangible and tangible)	-60	-38	-186	-164
Disposal of non-current assets (intangible and tangible)	0	11	33	44
Acquisition of leased vehicles	-285	-175	-1,266	-1,156
Disposal of leased vehicles	154	212	595	653
Operating cash flow	110	121	201	212
Investment in financial assets	-4	-1	-29	-26
Disposal of financial assets	0	0	27	27
Acquisition of subsidiary/operation, net	-249	-201	-332	-284
Disposal of subsidiary/operation, net	0	55	0	55
Disposal of discontinued operation, net	0	0	5	5
Cash flow after net investments	-143	-26	-128	-11
Financing activities
Borrowings	1,116	0	2,116	1,000
Repayment of loans	-650	0	-1,550	-900
Change in overdraft facility	-251	-31	-524	-304
Exercised warrants	2	0	3	1
Dividend paid to Parent Company's shareholders	0	0	-302	-302
Cash flow from financing activities	217	-31	-257	-505
Change in cash and cash equivalents, excl. translation
differences	74	-57	-385	-516
Cash and cash equivalents recognised in assets held for sale	0	-1	1	0
Exchange difference in cash and cash equivalents	0	0	-1	-1
Change in cash and cash equivalents	74	-58	-385	-517
Cash and cash equivalents at start of period	99	616	558	616
Cash and cash equivalents at end of period	173	558	173	99

The carrying amount of financial instruments is a reasonable approximation of fair value.

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 been valuated to fair value. The value of the currency derivatives is not material and does not constitute a significant item. Fair value measurement has affected earnings by SEK 0 M.

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.

	2/14	3/14	4/14	1/15	2/15	3/15	4/15	1/16
Continuing operations
Net turnover, SEK M	4,819	4,299	5,037	4,715	5,381	4,597	5,750	5,433
Operating profit excl. items affecting
comparability, SEK M	126	124	202	153	187	154	237	185
Operating margin excl. items affecting
comparability, %	2.6	2.9	4.0	3.2	3.5	3.4	4.1	3.4
Operating profit, SEK M	126	137	198	157	384	154	234	185
Operating margin, %	2.6	3.2	3.9	3.3	7.1	3.4	4.1	3.4
Profit before tax, SEK M	122	133	204	154	383	162	234	183
Interest coverage ratio, times 1)	7.4	8.3	15.0	17.8	30.9	41.3	32.9	28.6
The Bilia Group
Profit/loss for the period, SEK M	87	105	119	23	297	131	196	143
Rate of capital turnover, times 1)	3.12	3.10	3.06	2.99	2.99	2.98	2.96	2.93
Return on capital employed, % 1)	19.4	21.0	19.8	21.8	31.7	33.8	36.2	35.6
Return on equity, % 1)	20.0	22.2	21.0	18.5	30.5	31.6	33.2	39.7
Net debt/equity, times	0.23	-0.09	-0.04	0.05	0.04	-0.05	0.16	0.33
Equity/assets ratio, %	28	28	27	24	25	29	28	26
Data per share (SEK)
Earnings/loss for the period	1.70 2)	2.10 4)	2.35 6)	0.45 8)	5.90 10)	2.60 12)	3.90 14)	2.80 16)
Equity	35 3)		36 5)	37 7) 35 9)		35 11) 37 13)	41 15)	44 17)
Operating cash flow	2.35 2)	11.90 4)	0.15 6)	2.40 8)	3.90 10)	2.45 12)	-4.55 14)	2.15 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 second quarter, 50,301,686.
• 3) Based on number of shares outstanding at 30 June 2014, 50,312,326.
• 4) Based on weighted average number of shares outstanding during third quarter, 50,318,925.
• 5) Based on number of shares outstanding at 30 September 2014, 50,330,722.
• 6) Based on weighted average number of shares outstanding during fourth quarter, 50,334,058.
• 7) Based on number of shares outstanding at 31 December 2014, 50,348,066.
• 8) Based on weighted average number of shares outstanding during first quarter, 50,366,845.
• 9) Based on number of shares outstanding at 31 March 2015, 50,393,016.
• 10) Based on weighted average number of shares outstanding during second quarter, 50,405,884.
• 11) Based on number of shares outstanding at 30 June 2015, 50,418,122.
• 12) Based on weighted average number of shares outstanding during third quarter, 50,419,599.
• 13) Based on number of shares outstanding at 30 September 2015, 50,424,016.
• 14) Based on weighted average number of shares outstanding during fourth quarter, 50,430,765.
• 15) Based on number of shares outstanding at 31 December 2015, 50,436,052.
• 16) Based on weighted average number of shares outstanding during first quarter, 50,662,922.
• 17) Based on number of shares outstanding at 31 March 2016, 50,700,734.

	First quarter		April 15 -	Full year
SEK M	2016	2015	March 16	2015
Net turnover	122	116	445	439
Administrative expenses	-131	-132	-507	-508
Operating loss 1)	-9	-16	-62	-69
Result from financial items
Income from interests in Group companies	-74	0	-97	-23
Interest income from Group companies	9	5	26	22
Other interest income and similar line items	7	1	8	2
Interest expenses to Group companies	0	0	0	0
Interest expenses and similar line items	-11	-2	-22	-13
Loss after financial items	-78	-12	-147	-81
Appropriations	0	0	345	345
Profit before tax	-78	-12	198	264
Tax	0	5	-5	0
Net profit for the period	-78	-7	193	264
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	-5	-4	-17	-16
- Buildings	-1	-1	-4	-4
- Equipment, tools, fixtures and fittings	-1	-1	-3	-3
Total	-7	-6	-24	-23

SEK M	31/3 2016	31/12 2015	31/3 2015
Assets
Non-current assets
Intangible assets
Intellectual property	57	54	47
Property, plant and equipment	57	54	47
Buildings	32	33	23
Construction in progress	11	8	6
Equipment, tools, fixtures and fittings	13	14	10
	56	55	39
Long-term investments
Interests in Group companies	856	793	679
Other securities held as non-current assets	0	0	0
Other non-current receivables	-	-	20
Deferred tax asset	99	99	38
	955	892	737
Total non-current assets Current assets	1,068	1,001	823
Current receivables
Receivables from Group companies	372	1,179	39
Other receivables	137	117	103
Cash on hand and accrued deposits	708	1	766
Total current assets	1,217	1,297	908
Total assets	2,285	2,298	1,731
Equity and liabilities Equity
Restricted equity
Share capital	253	252	252
Statutory reserve	47	47	47
	300	299	299
Non-restricted equity
Share premium reserve	49	48	47
Retained earnings including net profit for the year	687	765	796
	736	813	843
Total equity	1,036	1,112	1,142
Untaxed reserves	468	468	386
Provisions
Provisions for pensions and similar obligations	-	-	23
Deferred tax liability	3	3	2
Non-current liabilities	3	3	25
Debenture loan	-	-	28
Bond issue	496	-	-
Other liabilities	5	5	5
	501	5	33
Current liabilities
Debenture loan	-	28	-
Liabilities to Group companies	-	52	-
Other loans	116	-	-
Other liabilities	161	630	145
Total equity and liabilities	277 2,285	710 2,298	145 1,731
Pledged assets and contingent liabilities for Parent Company
Pledged assets	598	601	585
Contingent liabilities	917	986	1,343