Annual Report • Feb 22, 2017
Annual Report
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Earnings per share were SEK 1.26 (0.28)
Net sales increased by 4% to SEK 14,792 million (14,206)
*For further information, see Note 3
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 4,277 | 3,919 | 14,792 | 14,206 |
| Operating profit/loss | 353 | 275 | 944 | 782 |
| Operating margin, % | 8.3 | 7.0 | 6.4 | 5.5 |
| Adjusted operating profit/loss | 353 | 308 | 954 | 878 |
| Adjusted operating margin, % | 8.3 | 7.9 | 6.5 | 6.2 |
| Profit/loss after tax | 255 | 56 | 674 | 287 |
| Cash flow from operating activities | 415 | 694 | 428 | 841 |
| Operating cash flow | 449 | 658 | 594 | 988 |
| Interest coverage ratio | 21.6 | 4.3 | 15.5 | 2.5 |
| Cash conversion, % | 60 | 125 | 60 | 125 |
| Net debt/adjust. EBITDA, 12 m | 2.5 | 2.7 | 2.5 | 2.7 |
| Order intake | 4,313 | 3,886 | 15,990 | 14,249 |
| Order backlog | 8,644 | 7,092 | 8,644 | 7,092 |
During the period, net sales increased by 9 percent, 4 percent of which was organic. In Norway and Denmark growth was strong and Sweden once again showed growth in the quarter, which contributed to the Group's overall growth. Project selection resulted in lower net sales in Finland, but the operating margin improved in line with our focus on 'margin before volume'.
An important element in creating a national business in Finland was the acquisition of Asentaja in the Ostrobothnia region of the country. Asentaja has strengthened our platform and we can now progress in achieving a strong market position in Finland.
We are pleased with the development of the organic growth in the fourth quarter, but full-year growth for 2016 did not reach our financial target. To create even better conditions for growth and profitability we are reviewing how our security, sprinkler, cooling, technical facilities management and power businesses are organised.
Bravida's adjusted operating margin improved in the fourth quarter from 7.9 percent in 2015 to 8.3 percent. The improvement in the margin is the result of our initiatives to make improvements in productivity and purchasing, as well as careful project selection. Operating margins have improved in Sweden, Denmark and Finland. In Norway, the operating margin decreased from a high level, but it is still the highest in the Group.
Our order backlog, which only contains installation projects, continued to increase and it is now generating growth. In the fourth quarter, the order backlog rose by SEK 169 million, reaching a new record level of SEK 8,644 million.
Operations in south-west Norway posted a strong order intake in the quarter and in Stavanger Bravida received an order for SEK 290 million from the Norwegian Public Roads Administration.
Cash flow for the fourth quarter was reasonable but lower than the previous year, which was exceptionally strong. Our increase in service sales, which account for 47 percent of total sales, has a negative impact on cash flow as we bill customers in arrears. We did not achieve our cash conversion target for the full-year 2016, which places an even stronger focus on achieving this target in 2017.
We are seeing continued good demand for Bravida's services and there is positive potential for continued growth. Our focus on 'margin before volume' aims to balance resource shortages and pricing pressure against demand. A meticulous approach and correct pricing are key to continued healthy profitable growth.
We are well positioned for 2017 thanks to our strong order backlog and good demand.
Mattias Johansson, Stockholm, February 2017
Demand for technical installations and service is stable. There is healthy demand for projects relating to hospitals, care, retail, housing and infrastructure. The overall market is strong in Sweden, stable in Denmark and Norway, and has improved in Finland. Major construction firms in the Nordic region are reporting unchanged sales and rising order backlogs.
October–December
Net sales increased by 9 percent to SEK 4,277 million (3,919). Adjusted for currency fluctuations and acquisitions, net sales increased by 4 percent. Currency fluctuations had a marginal effect and acquisitions increased net sales by 5 percent.
In Sweden, net sales increased by 5 percent to SEK 2,480 million (2,352). In Norway, net sales rose by 20 percent to SEK 994 million (831). In Denmark, net sales increased by 16 percent to SEK 642 million (553). In Finland, net sales were SEK 185 million (187).
Order intake in the quarter totalled SEK 4,313 (3,886), an increase of 11 percent. The order backlog at 31 December was SEK 8,644 million (7,092), an increase of 22 percent and a new record level for Bravida.
Net sales increased by 4 percent to SEK 14,792 million (14,206). Adjusted for currency fluctuations and acquisitions, sales decreased by 1 percent. Currency fluctuations had a negative 1 percent effect on sales, while acquisitions contributed a 6 percent increase. Service
sales rose by 7 percent. The service initiative that was introduced at the start of 2016 is currently being implemented.
In Sweden, net sales were SEK 8,760 million (8,583), an increase of 2 percent. In Norway, net sales decreased by 2 percent to SEK 3,124 million (3,173). In local currency, sales increased by 1 percent. In Denmark, net sales increased by 8 percent to SEK 2,278 million (2,116). In Finland, net sales were SEK 662 million (358). Operations in Finland were established in June 2015.
Order intake increased by 12 percent to SEK 15,990 million (14,249).
Operating profit rose by 28 percent to SEK 353 million (275), resulting in an operating margin of 8.3 percent (7.0). Operating profit in Sweden increased by 31 percent to SEK 202 million (154). Operating profit in Norway rose by 5 percent to SEK 89 million (85). Operating profit in Denmark rose by 29 percent to SEK 44 million (34). In Finland, operating profit improved to SEK 7 million (6). Group-wide earnings were SEK 11 million (-4). Part of the reason for the earnings improvement is that the fourth quarter was not burdened with specific costs, SEK (33) million. Adjusted operating profit was SEK 353 million (308) and the adjusted operating margin was 8.3 percent (7.9). Establishment of the Finnish business resulted in a 0.2 percent (0.2) dilution of the operating margin during the quarter; accounting for this, the Group's operating margin was 8.5 percent (8.1).
Net financial items in the fourth quarter amounted to SEK -18 million (-46) and the impact on earnings from the market-based measurement of currency and interest rate hedges was SEK – million (-156).
In October 2015, the Group refinanced its debt by replacing bond financing with bank financing, with bonds and related currency and interest rate hedges being repaid. Profit after financial items was SEK 335 million (74). Profit after tax was SEK 255 million (56). Earnings per share for the fourth quarter were SEK 1.26 (0.28).
Operating profit rose by 21 percent to SEK 944 million (782), resulting in an operating margin of 6.4 percent (5.5). Operating profit in Sweden increased by 20 percent to SEK 574 million (480). Operating profit in Norway decreased by 12 percent to SEK 224 million (256). Operating profit in Denmark increased by 5 percent to SEK 114 million (108). In Finland, operating profit improved to SEK 7 million (0). Group-wide earnings were SEK 25 million (-62). Part of the reason for the earnings improvement was that specific costs decreased to SEK 10 million (96). Adjusted operating profit was SEK 954 million (878) and the adjusted operating margin was 6.5 percent (6.2). Specific costs in 2016 mainly related to costs for final negotiations in the dispute regarding Thule Air Base (see page 118 of the IPO prospectus) and acquisition costs. Our initiatives to make improvements in productivity and purchasing are continuing to contribute to the margin improvement. The establishment of the Finnish business during the period resulted in a dilution of the operating margin; accounting for
this, the adjusted operating margin was 6.6 percent (5.6).
Net financial items amounted to SEK -67 million (-227) and the impact on earnings from the market-based measurement of currency and interest rate hedges was SEK – million (-133). Profit after financial items was SEK 877 million (422). Profit after tax was SEK 674 million (287). Earnings per share for January to December were SEK 3.34 (1.42).
Depreciation and amortisation of machinery, equipment and intangible assets amounted to SEK 7 million (6) for the quarter. Depreciation and amortisation for January to December amounted to SEK 26 million (21).
The tax expense for the fourth quarter was SEK -80 million (-18). Profit before tax was SEK 335 million (74). The effective tax rate for the quarter was 24 (24) percent. The tax rate in Sweden is 22 percent, in Norway it is 25 percent, in Denmark 22 percent and in Finland 20 percent. The tax expense for the January–December period was SEK -203 million (-135). The tax expense for the previous year was impacted by SEK 22 million relating to a provision for a tax audit which has now been settled. The effective tax rate was 23 (32) percent. Profit before tax was SEK 877 million (422). Tax paid amounted to SEK 112 million (10).
Cash flow from operating activities in the fourth quarter was SEK 415 million (694). Cash flow from operating activities in the fourth quarter of the previous year was strong. Cash flow from investing activities was SEK -49 million (-58). Cash flow from financing activities was SEK -300 million (-431).
During the quarter, investments in machinery, equipment and non-current intangible assets amounted to SEK -14 million (-26) and acquisitions and divestments of subsidiaries and businesses totalled SEK -35 million (-34). Tax paid amounted to SEK 27 million (7).
Cash flow from operating activities for January to December was SEK 428 million (841) and cash flow from investing activities amounted to SEK -280 million (-262).
The deterioration in cash flow was due to higher trade receivables because of increased billing and higher accrued receivables relating to unbilled service sales. Net sales rose by 9 percent in the fourth quarter and service revenues increased by 7 percent. The percentage of overdue trade receivables is at the same level as the previous year.
Cash flow from financing activities was SEK -504 million (-767). During the period, investments in machinery, equipment and non-current intangible assets amounted to SEK -19 million (-34) and acquisitions and divestments of subsidiaries and businesses totalled SEK -262 million (-235). Tax paid amounted to SEK 112 million (10).
Bravida completed four acquisitions in the fourth quarter; one in Norway, one in Finland and two in Sweden. Bravida has acquired 100 percent of the shares in Moelven Elektro AS, which operates an electrical business in south-east Norway. Moelven has annual sales of approximately SEK 220 million and around 160 employees. Bravida has
acquired 100 percent of the shares in Asentaja Group Ab Oy, which has electrical, heating and plumbing and HVAC operations in the Ostrobothnia region of Finland. Asentaja has around 100 employees and annual sales of approximately SEK 130 million. The Swedish acquisitions have HVAC installation and service operations in Småland and electrical operations in Kristianstad, each with annual sales of around SEK 40 million.
In 2016, the Group acquired a total of nine businesses with estimated combined annual sales of SEK 909 million.
Bravida's net debt amounted to SEK 2,417 million (2,433) at 31 December. Cash conversion in 2016 was 60 percent, which is lower than Bravida's financial target of 100 percent. Lower installation sales and rising service sales had a negative effect on this key figure, and also cash flow in the fourth quarter of 2015 was exceptionally strong. Equity amounted to SEK 4,079 million (3,555) at the end of the period. The equity/assets ratio was 34.1 percent (31.2). Financial items in the fourth quarter amounted to SEK -18 million (-46).
The revaluation of currency and interest rate hedges amounted to SEK – million (-156); all currency and interest rate hedges were settled in conjunction with the refinancing carried out in October 2015. Financial items for the January– December period were SEK -67 million (-227). The revaluation of currency and interest rate hedges amounted to SEK – million (-133).
Consolidated cash and cash equivalents were SEK 286 million (573) at 31 December.
Interest-bearing liabilities amounted to SEK 2,703 million (3,005) at 31 Decem-
| NET SALES AND GROWTH | ||||
|---|---|---|---|---|
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
| Net sales | 4,277 | 3,919 | 14,792 | 14,206 |
| Change | 358 | 530 | 587 | 2,205 |
| Change, % | 9.1 | 15.6 | 4.1 | 18.4 |
| Of which | ||||
| Organic growth, % | 4 | 4 | -1 | 7 |
| Acquisitions, % | 5 | 13 | 6 | 12 |
| Currency effects, % | 0 | -1 | -1 | -1 |
ber. Bravida's total credit facilities amounted to SEK 4,003 million, of which SEK 1,300 million (1,215) was unused at 31 December 2016.
The average number of employees was 9,730 (9,359).
For the fourth quarter, revenues were SEK 22 million (41) and earnings before net financial items were SEK -11 million (26). For the January–December period, revenues were SEK 82 million (71) and earnings after net financial items were SEK -34 million (-143). The improvement in earnings was mainly due to improved net financial items as a result of new financing.
No events to report.
Bravida Holding AB was listed on Nasdaq Stockholm on 16 October 2015 at a price of SEK 40.0. At 30 December 2016, the share price was SEK 55.25 (55.50). The number of shareholders was 10,126 at 31 December 2016.
Share capital amounted to SEK 4 million divided among 202,766,598 shares, of which 201,566,598 are ordinary shares and 1,200,000 are class C shares. Ordinary shares entitle holders to one vote and a dividend payment, while class C shares entitle holders to onetenth of a vote and no dividend.
Bravissima Holding AB's (funds managed by Bain Capital) holding amounts to just over 30 percent and it is the only shareholder whose holding exceeds one-tenth of votes in the company for all shares in the company.
The shares have been quoted on Nasdaq Stockholm's Large Cap List since 2 January 2017.
The Board of Directors proposes a dividend of SEK 1,25 (1.00) per share for 2016. The proposal represents an increase of 25 percent and corresponds to 37 percent of net earnings per share, which is lower than Bravida's dividend policy as the acquisition pipeline continues to be good. The proposal corresponds to a total dividend of SEK 252 million (201).
Bravida has signed a credit agreement with SEK (Swedish Export Credit Corporation) for SEK 500 million with a maturity date of 21 October 2020.
The loan will be used to reduce existing long-term borrowing by SEK 500 million.
Changes in market conditions, financial turmoil and political decisions are the external factors that mainly affect demand for new construction of housing and commercial property, as well as investment from industry and the public sector. Demand for service and maintenance is less sensitive to economic fluctuations. Operating risks are related to day-to-day business operations such as tendering, price risks, capacity utilisation and revenue recognition. Management of these risks is part of Bravida's ongoing business process.
The percentage-of-completion method is applied and is based on the extent of completion of each project and the expected date of completion. A welldeveloped process for the monitoring of projects is essential in limiting the risk of incorrect revenue recognition. Bravida continually monitors the financial status of each project to ensure that individual project calculations are not exceeded. The Group is also exposed to impairment loss risks in fixed-price contracts and various types of financial risk such as currency, interest rate and credit risk. These material risks and uncertainties apply to both parent company and the consolidated Group.
No transactions with related parties outside the Group took place during the period.
The construction industry in Sweden remains stable. Confidence indicators for the construction industry are at historical highs. Bravida believes demand for technical installations and service is strong in metropolitan regions and university towns and healthy in the rest of Sweden.
Net sales in Sweden increased by 5 percent to SEK 2,480 million (2,352). Operations in Stockholm have stabilised and are reporting a smaller increase in net sales and an improvement in both order intake and backlog.
Operating profit rose by 31 percent to SEK 202 million (154), resulting in an operating margin of 8.2 percent (6.6). Earnings improvement is explained by a positive affect on the margin from the purchasing and productivity initiatives, but also from the fourth quarter of 2015 being weak.
Net sales in Sweden increased by 2 percent to SEK 8,760 million (8,583). Operating profit rose by 20 percent to SEK 574 million (480), resulting in an operating margin of 6.6 percent (5.6).
Order intake increased by 7 percent and the order backlog rose by 24 percent.
Bravida Sweden received a number of large orders concerning office, industrial and energy projects. The majority of order intake in the quarter, however, related to small and medium-sized installation projects and service.
Order intake increased by 8 percent and the order backlog rose by SEK 945 million to SEK 4,944 million.
Net sales by quarter, Sweden Rolling 12 months, Sweden
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 2,480 | 2,352 | 8,760 | 8,583 |
| Operating profit (EBIT) | 202 | 154 | 574 | 480 |
| Operating margin, % | 8.2 | 6.6 | 6.6 | 5.6 |
| Order intake | 2,687 | 2,515 | 9,566 | 8,886 |
| Order backlog | 4,944 | 3,999 | 4,944 | 3,999 |
| Average number of employees | 5,330 | 5,102 | 5,330 | 5,102 |
Lindbäcks Bygg is to supply around 5,000 prefabricated apartment modules and Bravida will provide both installation and service of electrical solutions. This is a framework agreement over three years and involves both installation during production at Lindbäcks Bygg's factory outside Piteå in northern Sweden and fitting when the buildings are assembled. Bravida will also be providing service of the completed apartments.
The Norwegian economy has stabilised after several years' economic downturn and the next few years are expected to show a gradual improvement. Increased investments in public-sector construction and infrastructure and housing, however, have resulted in a stable Norwegian construction sector. Construction starts for housing and commercial facilities have increased in 2016. Bravida believes demand for technical installations and service is strong around Oslo and in northern Norway and healthy in the rest of the Norway, except for the south-west of the country where overall demand remains weak.
Net sales increased by 20 percent to SEK 994 million (831). Net sales rose in all regions except south-west Norway. Operating profit was SEK 89 million (85), which equates to an operating margin of 8.9 percent (10.2). In the second half of 2015, final settlement was made for a number of large projects which contributed to a high operating margin. In addition, the operating margin in south-west Norway deteriorated in 2016.
Net sales decreased by 2 percent to SEK 3,124 million (3,173). In local currency, net sales rose by 1 percent. The lower sales are mainly due to lower activity in the southwest of Norway.
Operating profit was SEK 224 million (256), which represents an operating margin of 7.2 percent (8.1). The lower operating income was due to costs to adapt the organisation, lower sales in south-west Norway, the weaker Norwegian krone and final settlement of several large projects in the second half of 2015.
Order intake increased by 61 percent to SEK 1,031 million (641). The order backlog grew by 30 percent to SEK 1,677 million (1,295). During the quarter, Bravida Norway received a large order from the Norwegian Public Roads Administration for electrical installations in two newly built road tunnels in the Stavanger area for a value of SEK 290 million. Bravida also signed some additional large orders in south-west Norway. The majority of order intake in the quarter, however, related to small and medium-sized installation projects and service.
Order intake increased by 16 percent.
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 994 | 831 | 3,124 | 3,173 |
| Operating profit (EBIT) | 89 | 85 | 224 | 256 |
| Operating margin, % | 8.9 | 10.2 | 7.2 | 8.1 |
| Order intake | 1,031 | 641 | 3,507 | 3,018 |
| Order backlog | 1,677 | 1,295 | 1,677 | 1,295 |
| Average number of employees | 2,349 | 2,359 | 2,349 | 2,359 |
The Norwegian Public Roads Administration is building new tunnels in Stavanger and Bravida is providing all electrical installations in the Eiganes and Hundvåg Tunnels. Eiganes Tunnel will direct traffic outside Stavanger, while the Hundvåg Tunnel will be an undersea tunnel linked to the mainland. Bravida's work in Stavanger will include fitting 364,000 metres of cabling and installing 4,000 electrical fittings, 840 LED lights, 450 information displays and 240 surveillance cameras.
The Danish construction market is stable. The market is being driven by new-builds and renovation of public-sector buildings such as hospitals, universities and schools, as well as increased new-builds and renovation of housing. However, the confidence indicator for the Danish construction sector is still slightly below the normal level. Bravida believes demand for technical installations and service is healthy in major cities.
Net sales increased by 16 percent to SEK 642 million (553). The increased net sales is explained by a high activity in a number of large projects, and rising sevice sales.
Operating profit rose by 29 percent to SEK 44 million (34), resulting in an operating margin of 6.8 percent (6.1). Improvement in earnings is explained by increased margin in Region Infrastructure, which in the end of 2015 was affected by write-downs in a couple of projects.
Currency fluctuations had a marginal impact on net sales and operating profit.
Net sales increased by 8 percent to SEK 2,278 million (2,116). Operating profit was SEK 114 million (108), which represents an operating margin of 5.0 percent (5.1). Operating profit was negatively affected by two project write-downs in the first quarter of 2016.
Order intake amounted to SEK 493 million (571). Order intake in the quarter related to small and medium-sized installation projects and service. In the previous year, two large orders totalling SEK 165 million were recorded in the fourth quarter.
The order backlog at the end of the period increased by 18 percent to SEK 1,689 million (1,432).
Order intake increased by 20 percent to SEK 2,412 million (2,014). An order for SEK 390 million was signed in the third quarter for installation work on a newly built hospital.
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 642 | 553 | 2,278 | 2,116 |
| Operating profit (EBIT) | 44 | 34 | 114 | 108 |
| Operating margin, % | 6.8 | 6.1 | 5.0 | 5.1 |
| Order intake | 493 | 571 | 2,412 | 2,014 |
| Order backlog | 1,689 | 1,432 | 1,689 | 1,432 |
| Average number of employees | 1,602 | 1,446 | 1,602 | 1,446 |
Tulip Food Company has production and sales in a number of countries. Bravida is providing service and maintenance of HVAC facilities at its factory in Svenstrup, Denmark. In addition to the service agreement, Bravida provided energy optimisation services and refurbished two of the facilities in 2016. The work resulted in an improved indoor climate and total energy savings of 1,800 MWh a year.
The construction sector in Finland has gradually improved over the past year and building companies are reporting increased sales and better order levels. Confidence indicators for the Finnish construction industry are stable. Bravida believes demand for technical installations and service is growing.
Net sales amounted to SEK 185 million (187). Operating profit was SEK 7 million (6), which equates to an operating margin of 4.0 percent (3.0). Asentaja Group, which was acquired in December, contributed to an improvement in the operating profit. Currency fluctuations had a marginal impact on net sales and operating profit.
Net sales amounted to SEK 662 million (358). Bravida Finland was formed in 2015 through the acquisition of the installation and service divisions of Peko Group in June 2015 and Halmesvaara Oy in July 2015. During the year significant resources were allocated to optimising the organisational structure and implementing Bravida's corporate culture and procedures. This has resulted in careful project selection, which led to a reduction in net sales and an improvement in the operating margin.
Operating profit was SEK 7 million (0), which equates to an operating margin of 1.1 percent (0.0).
Order intake amounted to SEK 125 million (165). Order intake in the quarter related to small and medium-sized installation projects and service. The order backlog at the end of the quarter was SEK 334 million (367). Project selection has resulted in a lower order backlog.
Order intake amounted to SEK 538 million (355). The increase was due to the company being established in June 2015.
Net sales by quarter, Sweden Rolling 12 months, Sweden
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 185 | 187 | 662 | 358 |
| Operating profit (EBIT) | 7 | 6 | 7 | 0 |
| Operating margin, % | 4.0 | 3.0 | 1.1 | 0.0 |
| Order intake | 125 | 165 | 538 | 355 |
| Order backlog | 334 | 367 | 334 | 367 |
| Average number of employees | 380 | 387 | 380 | 387 |
Kurikan Kampus in Ostrobothnia is a combined college for both theoretical studies and practical vocational training. An existing part of the campus is now being both refurbished and extended with an entirely new building. Bravida is providing all electrical installations in both the old and new building, which together comprise an area of 16,000 square metres. The college is operating as normal alongside the installation project, which is estimated to be completed by December 2018.
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 4,277 | 3,919 | 14,792 | 14,206 |
| Production costs | -3,547 | -3,272 | -12,562 | -12,081 |
| Gross profit/loss | 730 | 647 | 2,230 | 2,124 |
| Selling and administrative expenses | -377 | -372 | -1,286 | -1,342 |
| Operating profit/loss | 353 | 275 | 944 | 782 |
| Net financial items | -18 | -46 | -67 | -227 |
| Revaluation of currency and interest hedges | – | -156 | – | -133 |
| Profit/loss before tax | 335 | 74 | 877 | 422 |
| Tax on profit/loss for the period | -80 | -18 | -203 | -135 |
| Profit/loss for the period | 255 | 56 | 674 | 287 |
| Other comprehensive income | ||||
| Items transferred or that can be transferred to profit or loss | ||||
| Translation differences for the period from the translation of foreign operations | -8 | -46 | 92 | -89 |
| Changes in the fair value of financial derivatives for the period | – | 156 | – | 171 |
| Tax attributable to the fair value of financial derivatives | – | -34 | – | -38 |
| Items that cannot be transferred to profit or loss | ||||
| Revaluation of defined-benefit pensions | 270 | 148 | -65 | 248 |
| Tax attributable to the revaluation of pensions | -59 | -33 | 14 | -54 |
| Other comprehensive income for the period | 202 | 191 | 42 | 238 |
| Comprehensive income for the period | 457 | 247 | 715 | 525 |
| Comprehensive income for the period attributable to: | ||||
| Equity holders of the parent | 456 | 246 | 714 | 519 |
| Non-controlling interests | 0 | 1 | 1 | 5 |
| Comprehensive income for the period | 457 | 247 | 715 | 525 |
| Earnings per share for the period, SEK | 1.26 | 0.28 | 3.34 | 1.42 |
| Number of shares in the parent company | 201,566,598 | 201,566,598 | 201,566,598 | 201,566,598 |
| Order | ||||
| Order intake | 4,313 | 3,886 | 15,990 | 14,249 |
| Order backlog | 8,644 | 7,092 | 8,644 | 7,092 |
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Operating profit/loss | 353 | 275 | 944 | 782 |
| Adjustments relating to specific costs * | – | 33 | 10 | 96 |
| Adjusted operating profit/loss | 353 | 308 | 954 | 878 |
* See note 3.
| SEK MIL. | 31 Dec 2016 | 31 Dec 2015 |
|---|---|---|
| Goodwill | 7,599 | 7,211 |
| Other non-current assets | 144 | 219 |
| Total non-current assets | 7,743 | 7,429 |
| Trade receivables | 2,544 | 2,165 |
| Income accrued but not invoiced | 875 | 813 |
| Other current assets | 514 | 415 |
| Cash and cash equivalents | 286 | 573 |
| Total current assets | 4,219 | 3,967 |
| Total assets | 11,962 | 11,396 |
| Equity attributable to holders of the parent | 4,067 | 3,543 |
| Equity attributable to non-controlling interests | 11 | 11 |
| Total equity | 4,079 | 3,555 |
| Other non-current liabilities | 2,945 | 2,877 |
| Total other non-current liabilities | 2,945 | 2,877 |
| Trade payables | 1,468 | 1,399 |
| Income invoiced but not accrued | 1,318 | 1,287 |
| Other current liabilities | 2,151 | 2,278 |
| Total current liabilities | 4,938 | 4,964 |
| Total liabilities | 7,883 | 7,842 |
| Total equity and liabilities | 11,962 | 11,396 |
| Of which interest-bearing liabilities | 2,703 | 3,005 |
| SEK MIL. | 31 Dec 2016 | 31 Dec 2015 |
|---|---|---|
| Consolidated equity | ||
| Opening balance | 3,555 | 3,306 |
| Comprehensive income for the period | 715 | 525 |
| Dividend | -202 | -277 |
| Cost shareholder programme | 10 | 1 |
| Closing balance | 4,079 | 3,555 |
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Profit/loss before tax | 335 | 74 | 877 | 422 |
| Adjustment for non-cash items | 54 | 309 | 50 | 278 |
| Income taxes paid | -27 | -7 | -112 | -10 |
| Changes in working capital | 53 | 319 | -387 | 150 |
| Cash flow from operating activities | 415 | 694 | 428 | 841 |
| Investing activities | ||||
| Acquisition of subsidiaries and businesses | -35 | -34 | -262 | -235 |
| Other | -14 | -24 | -18 | -27 |
| Cash flow from investing activities | -49 | -58 | -280 | -262 |
| Financing activities | ||||
| Loans to Group companies | – | 54 | – | – |
| Repayment of loan | -300 | -3,441 | -302 | -3,441 |
| New loan | – | 3,002 | – | 3,002 |
| Change in utilisation of overdraft facility | 0 | 0 | 0 | -6 |
| Payment in connection with refinancing | – | -46 | – | -46 |
| Dividend paid | – | – | -202 | -277 |
| Cash flow from financing activities | -300 | -431 | -504 | -767 |
| Cash flow for the period | 66 | 205 | -356 | -189 |
| Cash and cash equivalents at start of year | 220 | 408 | 573 | 828 |
| Translation difference in cash and cash equivalents | -1 | -41 | 69 | -66 |
| Cash and cash equivalents at end of period | 286 | 573 | 286 | 573 |
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Operating profit/loss | 353 | 275 | 944 | 782 |
| Depreciation and amortisation | 7 | 6 | 26 | 21 |
| Other adjustments for non-cash items | 49 | 83 | 28 | 62 |
| Capital expenditure | -14 | -24 | -18 | -27 |
| Changes in working capital | 53 | 319 | -387 | 150 |
| Operating cash flow | 449 | 658 | 594 | 988 |
| SEK MIL. | Oct–Dec 2016 |
Oct–Dec 2015 |
Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|---|---|
| Net sales | 22 | 41 | 82 | 71 |
| Selling and administrative expenses | -22 | -24 | -83 | -103 |
| Operating profit/loss | 0 | 17 | -1 | -32 |
| Net financial items | -12 | 9 | -34 | -111 |
| Profit/loss after financial items | -11 | 26 | -34 | -143 |
| Net Group contribution | 644 | 490 | 644 | 490 |
| Transfer to/from untaxed reserves | -153 | -78 | -153 | -78 |
| Profit/loss before tax | 479 | 438 | 456 | 269 |
| Tax | -101 | -61 | -99 | -81 |
| Profit/loss for the period | 378 | 377 | 357 | 188 |
| SEK MIL. | Jan–Dec 2016 |
Jan-Dec 2015 |
|---|---|---|
| Shares in subsidiaries | 7,341 | 7,341 |
| Total non-current assets | 7,341 | 7,341 |
| Receivables from Group companies | 1,755 | 1,897 |
| Current receivables | 51 | 45 |
| Total current receivables | 1,806 | 1,942 |
| Cash and bank balances | 184 | 456 |
| Total current assets | 1,990 | 2,397 |
| Total assets | 9,331 | 9,739 |
| Restricted equity | 4 | 4 |
| Non-restricted equity | 4,760 | 4,595 |
| Equity | 4,764 | 4,599 |
| Untaxed reserves | 231 | 78 |
| Liabilities to credit institutions | 2,700 | 2,700 |
| Total non-current liabilities | 2,700 | 2,700 |
| Short-term loans | – | 300 |
| Liabilities to Group companies | 1,496 | 1,920 |
| Other current liabilities | 140 | 142 |
| Total current liabilities | 1,636 | 2,362 |
| Total equity and liabilities | 9,331 | 9,739 |
| Of which interest-bearing liabilities | 2,700 | 3,000 |
| Number of shares | 201,566,598 | 201,566,598 |
| INCOME STATEMENT, SEK MIL. | Oct–Dec 2016 |
July–Sept 2016 |
Apr–Jun 2016 |
Jan–Mar 2016 |
Oct–Dec 2015 |
July–Sept 2015 |
Apr–Jun 2015 |
Jan–Mar 2015 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 4,277 | 3,289 | 3,800 | 3,427 | 3,919 | 3,302 | 3,660 | 3,325 |
| Production costs | -3,547 | -2,822 | -3,245 | -2,948 | -3,272 | -2,821 | -3,135 | -2,854 |
| Gross profit/loss | 730 | 466 | 555 | 479 | 647 | 481 | 525 | 471 |
| Selling and administrative expenses | -377 | -277 | -328 | -305 | -372 | -312 | -339 | -318 |
| Operating profit/loss | 353 | 189 | 227 | 175 | 275 | 168 | 187 | 152 |
| Adjustments relating to specific costs | – | 11 | – | – | 33 | 27 | 17 | 20 |
| Adjusted operating profit/loss | 353 | 200 | 227 | 175 | 308 | 195 | 203 | 172 |
| Net financial items including revaluation of hedges | -18 | -17 | -16 | -15 | -202 | -32 | -58 | -68 |
| Profit/Loss after financial items | 335 | 172 | 211 | 159 | 74 | 136 | 129 | 84 |
| Tax on profit/loss for the period | -80 | -39 | -48 | -36 | -18 | -28 | -68 | -22 |
| Profit/loss for the period | 255 | 133 | 163 | 123 | 56 | 109 | 61 | 62 |
| BALANCE SHEET, SEK MIL. | 31 Dec 2016 |
30 Sept 2016 |
30 Jun 2016 |
31 Mar 2016 |
31 Dec 2015 |
30 Sept 2015 |
30 Jun 2015 |
31 Mar 2015 |
|---|---|---|---|---|---|---|---|---|
| Goodwill | 7,599 | 7,508 | 7,276 | 7,239 | 7,211 | 7,185 | 7,120 | 7,016 |
| Other non-current assets | 144 | 204 | 175 | 141 | 219 | 313 | 342 | 367 |
| Current assets | 3,933 | 3,813 | 3,638 | 3,521 | 3,395 | 3,536 | 3,334 | 3,005 |
| Cash and cash equivalents | 286 | 220 | 226 | 390 | 573 | 408 | 715 | 991 |
| Total assets | 11,962 | 11,745 | 11,314 | 11,290 | 11,396 | 11,443 | 11,512 | 11,379 |
| Equity | 4,079 | 3,619 | 3,543 | 3,640 | 3,555 | 3,306 | 3,152 | 3,357 |
| Borrowings | 2,700 | 2,700 | 2,700 | 2,700 | 2,700 | 3,420 | 3,374 | 3,390 |
| Other non-current liabilities | 245 | 475 | 300 | 174 | 177 | 330 | 407 | 424 |
| Current liabilities | 4,938 | 4,951 | 4,771 | 4,776 | 4,964 | 4,387 | 4,579 | 4,209 |
| Total equity and liabilities | 11,962 | 11,745 | 11,314 | 11,290 | 11,396 | 11,443 | 11,512 | 11,379 |
| CASH FLOW, SEK MIL. | Oct–Dec 2016 |
July–Sept 2016 |
Apr–Jun 2016 |
Jan–Mar 2016 |
Oct–Dec 2015 |
July–Sept 2015 |
Apr–Jun 2015 |
Jan–Mar 2015 |
|---|---|---|---|---|---|---|---|---|
| Cash flow from operating activities | 415 | -57 | 57 | 13 | 694 | -201 | 59 | 289 |
| Cash flow from investing activities | -49 | -183 | -36 | -13 | -58 | -95 | -44 | -65 |
| Cash flow from financing activities | -300 | 200 | -204 | -200 | -431 | -1 | -279 | -57 |
| Cash flow for the period | 66 | -40 | -182 | -200 | 205 | -296 | -264 | 167 |
| TECHNICAL AREAS | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Service | Installation | Electrical | Heating & Plumbing |
HVAC | Specialist areas | ||||
| Sweden | 47% | 53% | 46% | 29% | 18% | 7% | |||
| Norway | 54% | 46% | 71% | 17% | 4% | 8% | |||
| Denmark | 46% | 54% | 56% | 25% | 19% | 0% | |||
| Finland | 22% | 78% | 29% | 34% | 24% | 13% | |||
| The Group | 47% | 53% | 52% | 26% | 16% | 6% |
| KEY FIGURES | Oct–Dec 2016 |
July–Sept 2016 |
Apr–Jun 2016 |
Jan–Mar 2016 |
Oct–Dec 2015 |
July–Sept 2015 |
Apr–Jun 2015 |
Jan–Mar 2015 |
|---|---|---|---|---|---|---|---|---|
| Operating margin, % | 8.3 | 5.8 | 6.0 | 5.1 | 7.0 | 5.1 | 5.1 | 4.6 |
| Adjusted operating margin, % | 8.3 | 6.1 | 6.0 | 5.1 | 7.9 | 5.9 | 5.6 | 5.2 |
| Profit margin, % | 7.8 | 5.2 | 5.5 | 4.6 | 1.9 | 4.1 | 3.5 | 2.5 |
| Return on equity,* % | 17.5 | 13.3 | 12.5 | 9.7 | 8.4 | 12.1 | 10.4 | 10.8 |
| Net debt | 2,417 | 2,783 | 2,577 | 2,416 | 2,433 | 2,972 | 2,675 | 2,441 |
| Net debt/adjust. EBITDA, 12 m | 2.5 | 3.0 | 2.8 | 2.7 | 2.7 | 3.4 | 3.2 | 3.0 |
| Cash conversion,* % | 60 | 91 | 77 | 85 | 125 | 113 | 124 | 128 |
| Interest coverage ratio | 21.6 | 12.5 | 15.6 | 11.7 | 4.3 | 2.7 | 2.3 | 1.9 |
| Equity/assets ratio, % | 34.1 | 30.8 | 31.3 | 32.2 | 31.2 | 28.9 | 27.4 | 29.5 |
| Order intake | 4,313 | 3,693 | 4,515 | 3,469 | 3,886 | 3,458 | 3,669 | 3,236 |
| Order backlog | 8,644 | 8,475 | 7,972 | 7,135 | 7,092 | 7,099 | 6,875 | 6,502 |
| Average no. of employees | 9,730 | 9,469 | 9,302 | 9,419 | 9,359 | 9,374 | 8,874 | 8,798 |
| Administration costs as % of sales | 8.8 | 8.4 | 8.6 | 8.9 | 9.5 | 9.5 | 9.3 | 9.6 |
| Working capital as % of sales | -5.8 | -4.9 | -6.3 | -7.2 | -7.9 | -5.7 | -8.5 | -8.6 |
| Earnings per share for the period, SEK** | 1.26 | 0.66 | 0.81 | 0.61 | 0.28 | 0.54 | 0.30 | 0.31 |
| Equity per share, SEK** | 20.24 | 17.96 | 17.58 | 18.06 | 17.64 | 16.40 | 15.64 | 16.65 |
| Cash flow from operating activities per share, SEK** | 2.06 | -0.28 | 0.28 | 0.06 | 3.44 | -1.00 | 0.29 | 1.43 |
| Share price at balance sheet date, SEK | 55.25 | 57.00 | 50.50 | 59.75 | 55.50 | – | – | – |
*Calculated on rolling 12-month earnings.
**In the third quarter of 2015, a reverse 1:2 split of the company's shares was carried out, following which there are 201,566,598 shares. Earnings per share from previous periods have been restated in this interim report.
The company presents certain financial measures in the interim report that are not defined under IFRS. The company believes these measures provide valuable additional information for investors and the company's management as they allow relevant trends to be assessed. Bravida's definitions of these measures may differ from other companies' definitions of the same terms. These financial measures should be regarded as complementary rather than replacing the measures defined under IFRS. Below are definitions of measures not defined under IFRS and not mentioned elsewhere in the interim report. These measures are reconciled in the tables below. Calculations do not always tally because amounts in the table below have been rounded to the nearest million Swedish kronor. For definitions of key figures, see page 20.
| RECONCILIATION OF KEY FIGURES, NOT DEFINED UNDER IFRS | okt–dec 2016 |
jul–sep 2016 |
apr–jun 2016 |
jan–mar 2016 |
okt–dec 2015 |
jul–sep 2015 |
apr–jun 2015 |
jan–mar 2015 |
|---|---|---|---|---|---|---|---|---|
| Net debt | ||||||||
| Interest-bearing liabilities | 2,703 | 3,003 | 2,803 | 2,805 | 3,005 | 3,380 | 3,390 | 3,432 |
| Cash and cash equivalents | -286 | -220 | -226 | -390 | -573 | -408 | -715 | -991 |
| Total net debt | 2,417 | 2,783 | 2,577 | 2,416 | 2,433 | 2,972 | 2,675 | 2,441 |
| EBITDA | ||||||||
| Operating profit/loss | 353 | 189 | 227 | 175 | 275 | 168 | 187 | 152 |
| Depreciation, amortisation and impairment losses | 7 | 6 | 6 | 6 | 6 | 5 | 5 | 5 |
| EBITDA | 360 | 196 | 233 | 181 | 281 | 174 | 192 | 157 |
| Working capital | ||||||||
| Current assets | 4,219 | 4,033 | 3,864 | 3,911 | 3,967 | 3,891 | 4,049 | 3,996 |
| Cash and cash equivalents | -286 | -220 | -226 | -390 | -573 | -408 | -715 | -991 |
| Current liabilities | -4,938 | -4,951 | -4,771 | -4,776 | -4,964 | -4,389 | -4,579 | -4,209 |
| Current loans | 3 | 303 | 103 | 105 | 305 | 3 | 3 | 7 |
| Provisions | 143 | 130 | 115 | 117 | 141 | 120 | 124 | 127 |
| Total working capital | -859 | -705 | -916 | -1,032 | -1,124 | -784 | -1,118 | -1,069 |
| Interest coverage ratio | ||||||||
| Profit/loss before tax | 335 | 172 | 211 | 159 | 74 | 136 | 129 | 84 |
| Interest expense | 16 | 15 | 14 | 15 | 22 | 81 | 96 | 89 |
| Total | 351 | 187 | 225 | 174 | 96 | 217 | 225 | 173 |
| Interest expense | 16 | 15 | 14 | 15 | 22 | 81 | 96 | 89 |
| Interest coverage ratio, x | 21.6 | 12.5 | 15.6 | 11.7 | 4.3 | 2.7 | 2.3 | 1.9 |
| Cash conversion | ||||||||
| Operating profit/loss before depreciation, amortisation and impairment | ||||||||
| losses, past 12 months | 970 | 891 | 868 | 827 | 803 | 775 | 766 | 729 |
| Non-cash provisions in working capital, last 12 months | -1 | 54 | 39 | 51 | 60 | 25 | 34 | 15 |
| Change in working capital, last 12 months | -379 | -122 | -226 | -158 | 150 | 86 | 141 | 184 |
| Investments in machinery and equipment, last 12 months | -21 | -32 | -31 | -32 | -34 | -11 | -15 | -16 |
| Total | 569 | 791 | 650 | 688 | 979 | 875 | 926 | 912 |
| Operating profit/loss, last 12 months | 948 | 869 | 847 | 806 | 783 | 774 | 749 | 714 |
| Cash conversion, last 12 months, % | 60 | 91 | 77 | 85 | 125 | 113 | 124 | 128 |
This interim report for the group has been prepared in accordance with IAS 34 Interim Reporting and appropriate sections of Chapter 9, Interim Reporting, of the Swedish Annual Accounts Act. The parts of the interim report that relate to the parent company have been prepared in accordance with Section 9, Interim Reporting, of the Swedish Annual Accounts Act.
This report has been prepared in accordance with the same accounting policies and calculation methods as the 2015 Annual Report. New and amended IFRS standards and interpretations from the IFRS Interpretations Committee that apply from 1 January 2016 have no significant effect on Bravida Holding AB's financial reporting.
Bravida's segments are countries, i.e.: Sweden, Norway, Denmark and Finland.
| SEK MIL. | Oct–Dec 2016 |
break down |
Oct–Dec 2015 |
break down |
Jan–Dec 2016 |
break down |
Jan–Dec 2015 |
break down |
|---|---|---|---|---|---|---|---|---|
| Sweden | 2,480 | 58% | 2,352 | 60% | 8,760 | 59% | 8,583 | 60% |
| Norway | 994 | 23% | 831 | 21% | 3,124 | 21% | 3,173 | 22% |
| Denmark | 642 | 15% | 553 | 14% | 2,278 | 15% | 2,116 | 15% |
| Finland* | 185 | 4% | 187 | 5% | 662 | 4% | 358 | 3% |
| Group-wide and eliminations | -24 | -5 | -32 | -24 | ||||
| Total | 4,277 | 3,919 | 14,792 | 14,206 |
| SEK MIL. | Oct–Dec 2016 |
margin | Oct–Dec 2015 |
margin | Jan–Dec 2016 |
margin | Jan–Dec 2015 |
margin |
|---|---|---|---|---|---|---|---|---|
| Sweden | 202 | 8.2% | 154 | 6.6% | 574 | 6.6% | 480 | 5,6% |
| Norway | 89 | 8.9% | 85 | 10.2% | 224 | 7.2% | 256 | 8,1% |
| Denmark | 44 | 6.8% | 34 | 6.1% | 114 | 5.0% | 108 | 5,1% |
| Finland* | 7 | 4.0% | 6 | 3.0% | 7 | 1.1% | 0 | 0,0% |
| Group and eliminations | 11 | -4 | 25 | -62 | ||||
| Total | 353 | 8.3% | 275 | 7.0% | 944 | 6.4% | 782 | 5,5% |
| Adjustments (specific costs)** | 0 | 33 | 10 | 96 | ||||
| Adjusted operating profit/loss | 353 | 8.2% | 308 | 7.9% | 954 | 6.5% | 878 | 6,2% |
| Net financial items | -18 | -46 | -67 | -227 | ||||
| Revaluation of currency and interest hedges | – | -156 | – | -133 | ||||
| Profit/loss before tax | 335 | 74 | 877 | 422 |
| AVERAGE NUMBER OF EMPLOYEES | Jan–Dec 2016 |
Jan–Dec 2015 |
|---|---|---|
| Sweden | 5,330 | 5,102 |
| Norway | 2,349 | 2,359 |
| Denmark | 1,602 | 1,446 |
| Finland* | 380 | 387 |
| Group and eliminations | 70 | 65 |
| Total | 9,730 | 9,359 |
*Finland only for part of 2015. **Specific costs have only had an effect on Group-wide operations, not the other segments.
Specific costs are costs that are limited in time and relate mainly to improvement programmes, acquisition costs, the IPO, and during the third quarter 2016 costs for final negotiation of dispute. For distribution of specific costs per period, see also chart on page 10.
Bravida made the following acquisitions during the period January to December 2016:
| Acquired unit | Country | Type | Month of acquisition |
Percentage of votes |
No. of employees |
Estimated annual sales in SEK MIL. |
|---|---|---|---|---|---|---|
| Heating and plumbing business, Oslo | Norway | Company | January | 100% | 35 | 69 |
| Electrical business, Jutland | Denmark | Assets and liabilities | March | 100% | 25 | 38 |
| Heating and plumbing business, Sandnes | Norway | Company | April | 25% | ||
| Electrical business, Sandnes | Norway | Company | April | 25% | ||
| Electrical business, Copenhagen | Denmark | Company | May | 100% | 52 | 70 |
| Specialist business, Ljungby | Sweden | Assets and liabilities | June | 100% | 8 | 12 |
| Heating and plumbing business, Stockholm | Sweden | Company | July | 100% | 179 | 290 |
| HVAC business, south Sweden | Sweden | Company | October | 100% | 18 | 40 |
| Electrical business, south Sweden | Sweden | Company | November | 100% | 35 | 40 |
| Electrical business, south Norway | Norway | Company | December | 100% | 160 | 220 |
| Electrical, heating and plumbing, HVAC business, Ostrobothnia | Finland | Company | December | 100% | 100 | 130 |
Acquisitions have the following effects on consolidated assets and liabilities
| Group fair value, SEK MIL. | |
|---|---|
| Intangible assets | 3 |
| Other non-current assets | 23 |
| Other current assets | 151 |
| Cash and cash equivalents | 18 |
| Provisions | -17 |
| Long-term liabilities | 0 |
| Current liabilities | -176 |
| Sum net identifiable assets and liabilities | 2 |
| Consolidated goodwill | 338 |
| Aquisition price | 339 |
| Cash and cash equivalents (acquired) | 18 |
| Net effect on cash and cash equivalents | 321 |
| Cash consideration paid | 239 |
|---|---|
| Consideration recognised as a liability | 101 |
| Aquisition price | 339 |
Currency and interest hedges have been valued by an external party using the cash flow model, which is based on observable data for the currency and fixedincome markets.
The fair value of interest rate hedges are calculated using market value on the basis of listed prices. Based on the input data used, valuation can be classified as follows:
− Level 1 refers to fully observable data, unadjusted listed prices on an active market for identical assets and liabilities to which the company has access at the time of valuation.
− Level 2 refers to observable data, other than the listed prices of level 1, which is directly or indirectly observable.
− Level 3 refers to non-observable data for assets or liabilities. An asset or liability is included in its entirety in one of the three levels, based on the lowest level of input data that is material to the valuation.
Currency and interest hedges of the Group and the parent company which were ended during 2015 belonged to level 2.
Bravida's business is affected by seasonal variations in the construction industry and employees' annual holiday. Bravida usually has a lower level of activity in the third quarter as it is the main holiday period. The fourth quarter normally has higher earnings which is explained by many projects being completed during this period.
Stockholm, 22 February 2017 Bravida Holding AB
Mattias Johansson CEO and Group President
This interim report has not been reviewed by Bravida's auditors. This information is information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on 22 February 2017.
Mattias Johansson, President and CEO E-mail: [email protected] Telephone: +46 8 695 20 00
Nils-Johan Andersson, CFO E-mail: [email protected] Telephone: +46 70 668 50 75
This report contains information and opinions on future prospects for Bravida's business activities. The information is based on Group management's current expectations and estimates. Actual future outcomes may vary considerably from the forward-looking statements in this report, partly because of changes in economic, market and competitive conditions.
| Interim report 1 | 10 May |
|---|---|
| Annual General Meeting | 10 May |
| Interim report 2 | 25 July |
| Interim report 3 | 10 November |
The Annual Report 2016 will be published during week 15.
The Annual General Meeting will be held on May 10 at 2 p.m. CET, at Bravida's office on Mikrofonvägen 28, Stockholm.
Calculated as the average number of employees during the year, taking account of the percentage of full-time employment.
Profit/loss after financial items less tax calculated according to the respective country's tax rate divided by taxable earnings as a percentage of average equity.
Operating profit/loss comprises total comprehensive income before net financial items and income tax.
Operating profit/loss before depreciation, amortisation and impairment losses.
Income tax as a percentage of earnings before tax.
Equity attributable to equity holders of the parent company divided by the number of shares outstanding at period end.
Total exchange differences on borrowing and cash and cash equivalents in foreign currency, other financial revenue and other finance costs.
Operating profit/loss excluding specific costs as a percentage of net sales.
LOSS Earnings before financial items and taxes adjusted for specific costs.
Cash flow from operating activities for the period, divided by the number of shares at period end.
12-month EBITDA (operating profit/loss plus depreciation and amortisation) +/ change in working capital and investment in machinery and equipment in relation to 12-month EBIT (operating profit/loss).
Net sales are recognised in accordance with the principle of percentage-ofcompletion method. These revenues are recognised in proportion to the degree of completion of projects.
Average net debt divided by EBITDA excluding specific costs, based on a rolling 12-month calculation.
Interest-bearing liabilities, excluding pension liabilities, less cash and cash equivalents.
The change in sales adjusted for currency effects, as well as acquisitions and disposals compared with the same period of the previous year.
Operating profit/loss adjusted for noncash items, investments in machinery and equipment and changes in working capital.
The value of projects received and changes to existing projects during the period in question.
The value of remaining, not yet accrued project revenues from orders on hand at the end of the period. Order backlog does not include service operations, only installation projects.
Earnings for the period in relation to the average number of shares in the period.
Profit/loss after financial items plus interest expense, divided by interest expense.
Profit/loss before tax plus interest expense divided by interest expense.
Total current assets, excluding cash and cash equivalents, minus current liabilities excluding current provisions and borrowing.
Operating profit/loss as a percentage of net sales.
Earnings before financial items and taxes.
Operating profit/loss before scheduled depreciation, amortisation and impairment losses.
Equity including non-controlling interests as a percentage of total assets.
Items not included in standard business transactions, and where respective amounts are significant and consequently have an effect on earnings and key figures, are classified as non-recurring items.
Profit/loss after financial items, as a percentage of net sales.
The installation and refurbishment of technical systems in properties, facilities and infrastructure.
The operation, maintenance and minor refurbishment of installations in properties, facilities and infrastructure.
Power supply, lighting, heating, control and surveillance systems. Telecom and other low-voltage installations. Fire and intruder alarm systems and products, access control systems, CCTV and integrated security systems.
Comfort ventilation and comfort cooling through air treatment, air conditioning and climate control. Commercial cooling in freezer and cold rooms. Process ventilation control systems. Energy audits and energy efficiency through heat recovery ventilation, heat pumps, etc.
Water, waste water, heating, sanitation, cooling and sprinkler systems. District heating and cooling. Industrial piping with expertise in all types of pipe welding. Energy saving through integrated energy systems.
Bravida is a leading multi-technical service provider for properties and facilities in the Nordics across three main technical areas: electrical, heating and plumbing and HVAC. We combine the resources of a large company with the flexibility and presence of a local company in around 140 locations.
With modern technology and innovative solutions, we bring buildings to life. Our installation and service contracts cover buildings' energy, heating, cooling, water and air. Through the installation of modern technical systems and regular service, we create the conditions for sustainable growth and development in society.
We offer installation and service of electrical, heating & plumbing and HVAC solutions.
Our skills and efficiency add value and benefit for our customers on a daily basis.
We combine local presence with the resources of a big company.
We aim to become the leading multitechnical service provider in the Nordics. Our comprehensive capabilities help boost our customers' competitiveness."
We manage our business according to a number of key goals that reflect our aims regarding growth, stability and leadership in the sector.
Bravida Holding AB 126 81 Stockholm Street address: Mikrofonvägen 28 Sweden Telephone: +46 8 695 20 00 www.bravida.se
NORWAY Bravida Norge AS Postboks 313 Økern 0511 Oslo Norway Street address: Østre Aker vei 90
Bravida Sverige AB Box 818 721 22 Västerås Street address: Betonggatan 1 Sweden Telephone: +46 21 15 48 00 www.bravida.se
Telephone: +47 2404 80 00
www.bravida.no
Bravida Sverige AB Box 40 431 21 Mölndal Street address: Alfagatan 8 Sweden Telephone: +46 31 709 51 00 www.bravida.se
Bravida Finland Oy Ajomiehentie 1 00390 Helsinki Finland Telephone: +358 9 751 6060 www.bravida.fi
Bravida Sverige AB 126 81 Stockholm Street address: Mikrofonvägen 28 Sweden Telephone: +46 8 695 20 00 www.bravida.se
Bravida Danmark A/S Park Allé 373 2605 Brøndby Denmark Telephone: +45 4322 1100 www.bravida.dk
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