Quarterly Report • Nov 13, 2019
Quarterly Report
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BTS is a global professional services firm headquartered in Stockholm, Sweden, with over 800 professionals in 35 offices located on six continents. We focus on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For more than 30 years, we've been designing fun, powerful experiences™ that have a profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It's strategy made personal.
The global leader in turning
strategy into action.
1 | BTS INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2019 BTS INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2019 | 1 We serve a wide range of client needs, including: Strategy execution, Leadership development programs, Assessment, Developing business acumen, Transforming sales organizations, Coaching, and Digital solutions, events and services. We partner with nearly 450 organizations, including over 30 of the world's 100 largest global corporations. Our major clients are e.g.: ABB, Chevron, Coca-Cola, Ericsson, EY, HP, Mercado Libre, Salesforce.com, SAP, and Tencent. BTS is a public company listed on the Nasdaq Stockholm exchange and trades under the symbol BTS B. For more information, please visit www.bts.com.
Q3
The year's third quarter was healthy; revenue increased by 16 percent and earnings by 27 percent.
Our increase in profit has been stable over time. Earnings have now improved every quarter for the past thirteen quarters. For some people thirteen is an unlucky number, but not for us. Our goal is to continue to deliver new record-breaking quarters in the future.
BTS Europe had a very strong quarter, with 40 percent growth and a considerable earnings increase. BTS North America reported a strong quarter, with 21 percent growth and earnings that increased at the same rate. In BTS Other markets, growth was only 4 percent, which had a negative impact on the margin. We noted a weak performance in Mexico and Argentina, two markets where political changes led to significant uncertainty among companies.
The operating margin increased 0.8 percentage points in the third quarter, and 0.5 percentage points in the first nine months. The positive trend in the EBITA margin that began in the fourth quarter of 2016 is continuing.
These improvements were due to a higher share of licensing revenue, more efficient resource utilization and economies of scale – revenue growing more rapidly than overall costs. We will continue our efforts to raise the margin, with a target EBITA margin of 15 percent.
The market for BTS's services is continuing to expand. The rate of change in the global business sector is high, which is favorable for demand. BTS holds a strong competitive position through our global organization, our digital services and our track record on creating earnings for our customers. We can see an increase in inquiries into major projects and an increased win ratio for BTS.
One trend in the market is that major international companies prefer to work with fewer partners and are looking for more strategic and long-term collaborations. BTS is well positioned here, and we are winning several global, long-term agreements with broader content services.
The acquisitions made in 2016 and 2017 in Italy, Germany and by BTS Coach have been integrated well and are presenting favorable results. There are solid opportunities for further acquisitions that offer appealing synergies and growth potential.
The acquisition of SwissVBS in July has generated synergies; we have already won several joint projects in the market. During the third quarter, SwissVBS demonstrated slightly positive results, and our goal is to improve these in the next quarter.
In 2019, we expect profit before tax that is considerably better than in the preceding year.
Stockholm, November 13, 2019
Henrik Ekelund President and CEO of BTS Group AB (publ)
BTS's net sales for the nine-month period amounted to MSEK 1,313 (1,104). Adjusted for changes in foreign exchange rates, growth was 12 percent, of which 11 percent was organic.
Growth varied between the units: BTS Europe 19 percent, BTS North America 15 percent, BTS Other markets 9 percent and APG –12 percent (growth measured in local currency).
Operating profit (EBITA) for the nine-month period increased by 24 percent to MSEK 156 (126). The operating margin (EBITA margin) was 11.9 (11.4) percent. IFRS 16 had a positive effect of MSEK 3.4 on EBITA. If IFRS 16 had not been applied, EBITA would have increased by MSEK 153 (126).
Operating profit (EBIT) for the nine-month period increased by 27 percent to MSEK 142 (112). The operating margin (EBIT margin) was 10.8 percent (10.2). Operating profit (EBIT) for the nine-month period was charged with MSEK 14.3 (14.1) for amortization of intangible assets attributable to acquisitions.
The Group's profit before tax increased by 24 percent to MSEK 136 (110). IFRS 16 resulted in a higher interest expense of MSEK 5.4. If IFRS 16 had not been applied, the Group's profit before tax would have increased by MSEK 138 (110).
The Group's profitability was positively affected by improved profit in BTS North America and BTS Europe, while weaker earnings in BTS Other Markets and APG had a negative effect.
BTS's third-quarter net sales amounted to MSEK 460 (377). Adjusted for changes in foreign exchange rates, growth was 16 percent, of which 15 percent was organic. Operating profit (EBITA) increased by 31 percent in the third quarter to MSEK 54 (42). The operating margin (EBITA margin) was 11.8 (11.0) percent. IFRS 16 had a positive effect of MSEK 1.3 on EBITA. If IFRS 16 Leases had not been applied, EBITA would have increased by MSEK 53 (42).
Operating profit (EBIT) increased by 32 percent to MSEK 49 (37). The operating margin (EBIT margin) was 10.7 percent (9.8). Operating profit for the third quarter was charged with MSEK 5.4 (4.4) for amortization of intangible assets attributable to acquisitions.
Profit before tax for the third quarter increased by 27 percent to MSEK 46 (37). IFRS 16 resulted in a higher interest expense of MSEK 2.3. If IFRS 16 had not been applied, the Group's profit before tax would have increased by MSEK 47 (37).
The Group's profitability was positively affected by improved profit in BTS North America and BTS Europe, while weaker earnings in BTS Other markets and APG had a negative effect.
The market for BTS services continued to trend positively during the nine-month period.
The effects of IFRS 16 are not included in the BTS Operating units reporting. These effects are recognized as Group adjustments and presented in a separate table.
BTS North America consists of BTS's operations in North America, excluding APG but including SwissVBS with its operations in Canada and Switzerland.
BTS Europe consists of operations in France, Germany, the Netherlands, the UK and Sweden.
BTS Other markets consists of operations in Argentina, Australia, Brazil, China, Costa Rica, India, Italy, Japan, Mexico, Singapore, South Africa, South Korea, Spain, Taiwan, Thailand and the United Arab Emirates.
APG consists of operations in Advantage Performance Group in North America.
| MSEK | July–Sep 2019 |
July–Sep 2018 |
Jan–Sep 2019 |
Jan–Sep 2018 |
Oct–Sep 2018/19 |
Jan–Dec 2018 |
|---|---|---|---|---|---|---|
| BTS North America | 224 | 173 | 633 | 504 | 844 | 714 |
| BTS Europe | 95 | 67 | 257 | 211 | 362 | 316 |
| BTS Other markets | 116 | 109 | 341 | 305 | 496 | 460 |
| APG | 24 | 28 | 82 | 84 | 106 | 109 |
| Total | 460 | 377 | 1,313 | 1,104 | 1,807 | 1,598 |
| MSEK | July–Sep 2019 |
July–Sep 2018 |
Jan–Sep 2019 |
Jan–Sep 2018 |
Oct–Sep 2018/19 |
Jan–Dec 2018 |
|---|---|---|---|---|---|---|
| BTS North America | 29.3 | 22.4 | 86.3 | 68.9 | 110.9 | 93.4 |
| BTS Europe | 14.2 | 2.1 | 33.4 | 18.1 | 60.3 | 44.9 |
| BTS Other markets | 9.8 | 16.5 | 33.3 | 38.7 | 57.4 | 62.8 |
| APG | –0.3 | 0.5 | 0.0 | 0.5 | 0.5 | 0.9 |
| Total | 53.0 | 41.6 | 153.1 | 126.2 | 229.0 | 202.1 |
Net sales for BTS's operations in North America amounted to MSEK 633 (504) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue grew by 15 percent. Operating profit (EBITA) for the nine-month period totaled MSEK 86.3 (68.9). The operating margin (EBITA margin) was 13.6 (13.7) percent.
Net sales for the third quarter amounted to MSEK 224 (173). Adjusted for changes in foreign exchange rates, revenue grew by 21 percent. Operating profit (EBITA) amounted to MSEK 29.3 (22.4) in the third quarter. The operating margin (EBITA margin) was 13.1 (13.0) percent.
It was a strong third quarter for BTS North America. The market remains strong, where BTS has a good position and continues to gain market shares.
The acquired SwissVBS was consolidated in BTS North America in the third quarter. Excluding SwissVBS, the currency adjusted growth was 18 percent and the EBITA margin higher.
Net sales for BTS Europe amounted to MSEK 257 (211) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue grew by 19 percent. Operating profit (EBITA) amounted to MSEK 33.4 (18.1) for the ninemonth period. The operating margin (EBITA margin) was 13.0 (8.6) percent.
Net sales for the third quarter amounted to MSEK 95 (67). Adjusted for changes in foreign exchange rates, revenue grew by 40 percent. Operating profit (EBITA) amounted to MSEK 14.2 (2.1) in the third quarter. The operating margin (EBITA margin) was 14.9 (3.1) percent.
BTS Europe achieved a very strong third quarter. Considerable growth in Germany played a part.
Net sales for BTS Other markets amounted to MSEK 341 (305) for the nine-month period. Adjusted for changes in foreign exchange rates, revenue grew by 9 percent. Operating profit (EBITA) amounted to MSEK 33.3 (38.7) for the nine-month period. The operating margin (EBITA margin) was 9.8 (12.7) percent.
Net sales for the third quarter amounted to MSEK 116 (109). Adjusted for changes in foreign exchange rates, revenue grew by 4 percent. Operating profit (EBITA) amounted to MSEK 9.8 (16.5) in the third quarter. The operating margin (EBITA margin) was 8.4 (15.1) percent.
We have invested in growth in BTS Other markets, but have not achieved this, so the effect on the operating margin is significant.
Developments in Mexico and Argentina are weak, due to political uncertainty companies are cautious with their investments.
Net sales for APG amounted to MSEK 82 (84) in the ninemonth period. Adjusted for changes in foreign exchange rates, revenue declined by 12 percent. Operating profit (EBITA) amounted to MSEK 0.0 (0.5) for the nine-month period. The operating margin (EBITA margin) was 0.0 (0.6) percent.
Net sales for the third quarter amounted to MSEK 24 (28). Adjusted for changes in foreign exchange rates, revenue declined by 21 percent. Operating profit (EBITA) amounted to MSEK –0.3 (0.5) in the third quarter. The operating margin (EBITA margin) was –1.4 (1.8) percent.
We had weaker growth than expected for APG this year. A review of the business is in progress.
BTS's cash flow from operating activities for the ninemonth period amounted to MSEK 88.9 (61.1). IFRS 16 had a positive effect of MSEK 34.7 on the cash flow from operating activities. The weaker cash flow, excluding the IFRS effect during the year-earlier nine-month period, pertains exclusively to a reduction in current liabilities.
Available cash and cash equivalents amounted to MSEK 271 (231) at the end of the period. The company's interestbearing loans attributable to previously implemented acquisitions amounted to MSEK 93 (135) at the end of the period.
BTS's equity ratio was 47 percent (48) at the end of the period. If IFRS 16 had not been applied, the equity ratio would have increased by 52 percent.
The company had no outstanding conversion loans at the balance sheet date.
At September 30, the number of employees at BTS was 825 (682).
The average number of employees for the nine-month period was 765 (630).
The Parent Company's net sales amounted to MSEK 2.3 (2.3) and profit before tax totaled MSEK 26.5 (20.8). Cash and cash equivalents amounted to MSEK 0.0 (1.0).
Profit before tax is expected to be considerably better than the previous year.
On July 15, 2019, BTS acquired the shares of SwissVBS, as previously communicated in a press release on the same date, whereby 100 percent of the voting rights have now been acquired. The acquisition encompasses all operations including talent, technology, intellectual property, customer relations, brands and equipment.
Of the initial purchase price, approximately 10 percent was paid in new BTS shares. An additional payment will be paid out in 2021 provided the business meets specific targets 2019-2021 based on the entire measurement period.
SwissVBS provides high impact digital learning solutions for the modern corporate learner. It operates primarily in the European and North American markets, bringing thought leadership and creative solutions to clients through digital journeys as well as learning reinforcement methods. The SwissVBS team will bring world class expertise in digital learning and performance support. This means that BTS can offer clients a wider range of solutions and become even more competitive as an end-to-end talent partner. SwissVBS will also bring clients with whom the company has developed strong relationships and won awards, making BTS stronger in the Canadian and German-speaking markets.
SwissVBS was established in St. Gallen in 2001 as an offspring of the University of St. Gallen. Since then it has successfully grown into a respected provider of customized digital learning to some of the world's largest corporations.
Acquisition calculation at the date of acquisition translated at the exchange rate prevailing on the balance sheet date of September 30, 2019:
| MSEK | |
|---|---|
| Tangible assets | 0.1 |
| Intangible assets | 16.6 |
| Financial assets | 0.1 |
| Accounts receivable | 5.7 |
| Cash and cash equivalents | 0.1 |
| Current liabilities | –5.3 |
| Non-current liabilities | –7.4 |
| Identifiable assets | 9.9 |
| Goodwill | 49.3 |
| Total purchase prices | 59.3 |
| Fair value of issued shares | –0.7 |
| Provision for conditional purchase prices | –51.4 |
| Cash paid purchase prices for | |
| 2019 acquisitions | 7.2 |
Goodwill consists of expected future synergy effects in the form of an expanded product range and services. Alongside synergy effects, the addition of qualified employees and future profitability components are included in the goodwill item.
As previously communicated in a press release, the companies Polaris Assessment Systems and Samsari AB were acquired during the year. Through the acquisition of Polaris, BTS gains two business advantages: new industryleading services that give access to a new market segment worth approximately USD 2 billion globally, and secondly, bringing on board three influential thought leaders in this market segment. The acquisition of Samsari provides BTS with several years of experience in change management, transformation projects and communication and contributes to broadening its customer base in the Nordic market.
A complete analysis of the year's acquisitions will be presented in the 2019 year-end report.
No significant events occurred after the close of the period.
The Group's material risks and uncertainties include market and business risks, operational risks and financial risks. Business and market risks may relate to greater customer exposure for specific sectors and companies as well as sensitivity to market conditions. Operational risks include dependence on individuals, skills supply and intellectual property as well as BTS meeting the high quality demands of its clients. Financial risks mainly relate to foreign exchange and credit risks.
The management of risks and uncertainties is described in the 2018 Annual Report. BTS is considered to have a good spread of risks across companies and sectors, and operational risks are handled in a structured manner through well-established processes. Day-to-day exposure to currency fluctuations is limited since revenue and costs are mainly in the same currency in each market, and credit risk is limited since BTS only accepts creditworthy counterparties. No new material risks or uncertainties are deemed to have arisen during 2019.
In order to prepare the financial statements in conformity with IFRS, Corporate Management is required to make estimates and assumptions that affect the application of accounting principles and the recognized amounts of assets, liabilities, revenue and costs. Estimates and assumptions are based on historical experience and a number of other factors that are regarded as reasonable under prevailing conditions. Actual outcomes can deviate from these estimates and assumptions. Estimates and assumptions are reviewed regularly.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU, RFR 1 Supplementary Accounting Rules for Groups, and the Swedish Annual Accounts Act. The Parent Company's statements have been prepared in accordance with RFR 2 Accounting for Legal Entities and the Annual Accounts Act.
BTS applies IFRS 16 Leases as of January 1, 2019. IFRS 16 is applied retrospectively without restating comparative figures. Accordingly, the opening balance for 2019 has been restated in accordance with the new standard. The standard has impacted BTS's accounting of the Group's operating leases, which mostly comprise premises.
The Group recognizes a right-of-use asset in the balance sheet and a lease liability at the present value of future lease payments, adjusted for any prepaid or accrued payments attributable to the lease. The leased asset is depreciated straight-line over the lease term or over the useful life of the underlying asset if it is deemed to be probable that the Group will take over ownership at the end of the lease term. The lease expense is recognized as depreciation in EBITA and interest expenses in net financial items.
The implementation of the new lease standard results in increased assets and interest-bearing liabilities in the balance sheet, which thus impact the net financial position. The implementation also had a positive impact on EBITA in profit or loss based on a portion of the lease expenses being recognized as interest expenses in net financial items. In the cash flow statement, lease payments are distributed between interest paid in the operating cash flow and repayment of lease liabilities in the financing activities. Since the main payment is recognized in financing activities, cash flow from financing activities is reduced by the corresponding increase in cash flow from operating activities.
The average interest rate for the transition calculation was 4 percent. The Group applies the modified retrospective approach, meaning that the asset is recognized at the same amount as the lease liability, and for this reason no transition effect is presented in equity. Accordingly, comparative information continues to be recognized in accordance with IAS 17 Leases.
The opening effect on the consolidated balance sheet on January 1, 2019 was a reported lease asset (right-of-use asset) of MSEK 170 and a lease liability of MSEK 167 were added, of which MSEK 3 was reclassified from prepaid rent. The implementation effects are summarized in the table "Comparison between IAS 17 and IFRS 16." More details about the implementation, restated financial information and a description of new accounting principles are presented in BTS's 2018 Annual Report.
IFRIC 23 is a new interpretation that clarifies the accounting for uncertainty in income taxes under the framework of IAS 12 Income Taxes. For BTS, this entails a change to the classification of identified income-tax related risks that were previously recognized as a provision for tax expenses that are probable for setting the commitment. The uncertainty in the treatment of income taxes is recognized as a tax liability going forward.
IFRIC 23 is applied retrospectively without restating comparative figures. Accordingly, the opening balance for 2019 has been restated in accordance with the new interpretation. Income-tax related risks that were previously recognized as short and long-term provisions are reclassified to tax liabilities at an amount totaling MSEK 48 on January 1, 2019. Accordingly, no transition effect is presented in equity.
As previously announced, a Nomination Committee has been appointed. In consultation with Chairman of the Board Reinhold Geijer, BTS's three largest shareholders have appointed the following individuals to serve on the Nomination Committee:
Anders Dahl has been appointed Chairman of the Nomination Committee.
The task of the Committee is to put forward proposals prior to the 2020 Annual General Meeting for chairman of the annual meeting, the Board, the Chairman of the Board, and auditors, proposals of fees for Board member and the auditors, and principles for the composition of the Nomination Committee.
Shareholders in BTS Group AB are welcome to submit proposals to the Chairman of the Nomination Committee at the following address: [email protected] or by mail to: BTS Group AB, Nomination Committee, Grevgatan 34, SE-114 53 Stockholm, Sweden.
The proposed composition of the Board of the Directors will be announced in the notice convening the next Annual General Meeting.
Year-end report 2019 February 18, 2020 Interim report Jan–March 2020 May 14, 2020 Interim report Jan–June 2020 August 18, 2020 Interim report Jan–Sep 2020 November 11, 2020
Stockholm, November 13, 2019
Henrik Ekelund President and CEO
This report has not been reviewed by BTS's auditors.
| Henrik Ekelund CEO | Tel: +46 8 587 070 00 | |
|---|---|---|
| Stefan Brown | CFO | Tel: +46 8 587 070 62 |
| Michael Wallin Head of Investor | Tel: +46 8 587 070 02 | |
| Relations | Mobile: +46 70 878 80 19 |
For further information, visit our website www.bts.com
BTS Group AB (publ) Grevgatan 34 SE-114 53 Stockholm SWEDEN
Tel. +46 8 587 070 00 Fax. +46 8 587 070 01 Company registration number: 556566-7119
| KSEK | July–Sep 2019 |
July–Sep 2018 |
Jan–Sep 2019 |
Jan–Sep 2018 |
Oct–Sep 2018/19 |
Jan–Dec 2018 |
|---|---|---|---|---|---|---|
| Net sales | 459,739 | 377,403 | 1,312,994 | 1,103,973 | 1,807,420 | 1,598,399 |
| Operating expenses | –387,927 | –333,563 | –1,109,688 | –970,046 | –1,524,092 | –1,384,450 |
| Depreciation of property, plant, and equipment |
–17,448 | –2,277 | –46,862 | –7,703 | –50,993 | –11,835 |
| Amortization of intangible assets | –5,380 | –4,424 | –14,254 | –14,069 | –18,898 | –18,713 |
| Operating profit | 48,984 | 37,139 | 142,191 | 112,155 | 213,437 | 183,401 |
| Net financial items | –2,686 | –854 | –6,691 | –2,347 | –7,474 | –3,130 |
| Associated company, profit after tax | –37 | 243 | 708 | 256 | –25 | –477 |
| Profit before tax | 46,261 | 36,529 | 136,208 | 110,064 | 205,937 | 179,794 |
| Estimated tax | –14,006 | –11,071 | –40,646 | –32,852 | –61,454 | –53,660 |
| Profit for the period | 32,255 | 25,458 | 95,562 | 77,212 | 144,483 | 126,134 |
| attributable to the shareholders of the parent company |
32,255 | 25,458 | 95,562 | 77,212 | 144,483 | 126,134 |
| Earnings per share, before dilution of shares, SEK |
1.67 | 1.35 | 4.98 | 4.09 | 7.55 | 6.67 |
| Number of shares at end of the period | 19,318,292 | 18,887,051 | 19,318,292 | 18,887,051 | 19,318,292 | 19,013,916 |
| Average number of shares before dilution | 19,311,340 | 18,887,051 | 19,188,893 | 18,887,051 | 19,139,005 | 18,905,124 |
| Earnings per share, after dilution of shares, SEK |
1.67 | 1.32 | 4.98 | 4.00 | 7.55 | 6.56 |
| Average number of shares after dilution | 19,311,340 | 19,284,748 | 19,188,893 | 19,284,748 | 19,139,005 | 19,232,346 |
| Dividend per share, SEK | 3.60 |
| KSEK | July–Sep 2019 |
July–Sep 2018 |
Jan–Sep 2019 |
Jan–Sep 2018 |
Oct–Sep 2018/19 |
Jan–Dec 2018 |
|---|---|---|---|---|---|---|
| Profit for the period | 32,255 | 25,458 | 95,562 | 77,212 | 144,483 | 126,134 |
| Items that will not be reclassified to profit or loss |
– | – | – | – | – | – |
| – | – | – | – | – | – | |
| Items that may be reclassified to profit or loss |
||||||
| Translation differences in equity | 32,224 | –10,964 | 60,960 | 34,425 | 66,283 | 39,747 |
| Other comprehensive income for the period, net of tax |
32,224 | –10,964 | 60,960 | 34,425 | 66,283 | 39,747 |
| Total comprehensive income for the period | 64,478 | 14,493 | 156,522 | 111,637 | 210,766 | 165,881 |
| attributable to the shareholders of the parent company |
64,478 | 14,493 | 156,522 | 111,637 | 210,766 | 165,881 |
| KSEK | Sep 30 2019 |
Sep 30 2018 |
Dec 31 2018 |
|---|---|---|---|
| Assets | |||
| Goodwill | 543,572 | 444,476 | 455,268 |
| Other intangible assets | 82,712 | 77,182 | 72,026 |
| Tangible assets | 220,8431 | 36,908 | 38,803 |
| Financial assets | 13,736 | 13,336 | 15,082 |
| Total non-current assets | 860,863 | 571,901 | 581,179 |
| Trade receivables | 432,603 | 368,428 | 512,468 |
| Other current assets | 246,728 | 229,265 | 172,006 |
| Cash and cash equivalents | 270,541 | 230,600 | 262,357 |
| Total current assets | 949,872 | 828,292 | 946,831 |
| TOTAL ASSETS | 1,810,735 | 1,400,194 | 1,528,010 |
| Equity and liabilities | |||
| Equity | 854,204 | 666,408 | 704,203 |
| Provisions | 233,9062 | 220,455 | 220,608 |
| Non-current liabilities | 228,4221 | 81,190 | 62,893 |
| Current liabilities | 494,2021 | 432,141 | 540,307 |
| Total liabilities | 956,530 | 733,786 | 823,807 |
| TOTAL EQUITY AND LIABILITIES | 1,810,735 | 1,400,194 | 1,528,010 |
The IFRS effect for the period January to September 2019 appears in a separate table on page 13.
MSEK 49.1 has been reclassified from provisions to long-term and short-term tax liabilities.
| KSEK | Jan–Sep 2019 |
Jan–Sep 2018 |
Jan–Dec 2018 |
|---|---|---|---|
| Cash flow before changes in working capital | 150,652 | 104,369 | 160,097 |
| Cash flow from changes in working capital | –61,718 | –43,229 | –1,934 |
| Cash flow from operating activities | 88,934 | 61,140 | 158,163 |
| Acquisition related | –11,618 | – | –15,055 |
| Other1 | –20,074 | –25,274 | –22,266 |
| Cash flow from investing activities | –31,691 | –25,274 | –37,321 |
| Dividend | –34,458 | –26,442 | –53,010 |
| New issue | 22,899 | – | 5,800 |
| Other2 | –52,583 | 8,823 | –23,366 |
| Cash flow from financing activities | –64,142 | –17,619 | –70,576 |
| Cash flow for the period | –6,899 | 18,246 | 50,266 |
| Cash and cash equivalents, opening balance | 262,357 | 199,876 | 199,876 |
| Translation differences in cash and cash equivalents | 15,082 | 12,478 | 12,215 |
| Cash and cash equivalents, closing balance | 270,541 | 230,600 | 262,357 |
Acquisition of assets.
The IFRS effect for the period January to September 2019 appears in a separate table on page 13; the remainder relates to changes in loans. .
| KSEK | Total equity Sep 30, 2019 |
Total equity Sep 30, 2018 |
Total equity Dec 31, 2018 |
|---|---|---|---|
| Opening balance | 704,203 | 580,555 | 580,555 |
| Dividend to shareholders | –34,458 | –26,442 | –53,010 |
| New issue | 26,657 | – | 10,943 |
| Other | 1,281 | 658 | –166 |
| Total comprehensive income for the period | 156,522 | 111,637 | 165,881 |
| Closing balance | 854,204 | 666,408 | 704,203 |
| KSEK | July–Sep 2019 |
July–Sep 2018 |
Jan–Sep 2019 |
Jan–Sep 2018 |
Oct–Sep 2018/19 |
Jan–Dec 2018 |
|---|---|---|---|---|---|---|
| Net sales | 545 | 625 | 2,315 | 2,325 | 2,945 | 2,955 |
| Operating expenses | 561 | –1,261 | 328 | –500 | –928 | –1,756 |
| Operating profit | 1,106 | –636 | 2,643 | 1,825 | 2,017 | 1,199 |
| Net financial items | 2,279 | –594 | 23,886 | 19,012 | 72,614 | 67,739 |
| Profit before tax | 3,385 | –1,230 | 26,529 | 20,837 | 74,631 | 68,939 |
| Estimated tax | – | – | – | – | –827 | –827 |
| Profit for the period | 3,385 | –1,230 | 26,529 | 20,837 | 73,804 | 68,112 |
| KSEK | Sep 30, 2019 | Sep 30, 2018 | Dec 31, 2018 |
|---|---|---|---|
| Assets | |||
| Financial assets | 302,981 | 302,026 | 301,983 |
| Other current assets | 53,430 | 50,680 | 41,517 |
| Cash and cash equivalents | 9 | 1,002 | 4,509 |
| Total assets | 356,420 | 353,707 | 348,010 |
| Equity and liabilities | |||
| Equity | 175,608 | 125,231 | 156,881 |
| Non-current liabilities | 147,802 | 167,802 | 147,802 |
| Current liabilities | 33,010 | 60,675 | 43,327 |
| Total equity and liabilities | 356,420 | 353,707 | 348,010 |
| KSEK | July–Sep 2019 |
July–Sep 2018 |
Jan–Sep 2019 |
Jan–Sep 2018 |
Oct–Sep 2018/19 |
Jan–Dec 2018 |
|---|---|---|---|---|---|---|
| Net sales | 459,739 | 377,403 | 1,312,994 | 1,103,973 | 1,807,420 | 1,598,399 |
| Operating profit (EBITA) | 54,364 | 41,564 | 156,445 | 126,224 | 232,335 | 202,114 |
| Operating margin (EBITA margin), % | 11.8 | 11.0 | 11.9 | 11.4 | 12.9 | 12.6 |
| Operating profit (EBIT) | 48,984 | 37,139 | 142,191 | 112,155 | 213,437 | 183,401 |
| Operating margin (EBIT margin), % | 10.7 | 9.8 | 10.8 | 10.2 | 11.8 | 11.5 |
| Profit margin, % | 7.0 | 6.7 | 7.3 | 7.0 | 8.0 | 7.9 |
| Operating capital1 | 676,413 | 544,686 | ||||
| Return on operating capital, % | 35 | 35 | ||||
| Return on equity, % | 19 | 20 | ||||
| Equity ratio, at end of the period, % | 47 | 48 | 47 | 48 | 47 | 46 |
| Cash flow | 60,462 | 68,011 | –6,899 | 18,246 | 25,121 | 50,266 |
| Cash and cash equivalents, at end of the period |
270,541 | 230,600 | 270,541 | 230,600 | 270,541 | 262,357 |
| Average number of employees | 809 | 657 | 765 | 630 | 748 | 645 |
| Number of employees at end of the period | 825 | 682 | 825 | 682 | 825 | 701 |
| Revenues for the year per employee | 2,417 | 2,478 |
1 The calculation included the item of non-interest-bearing liabilities amounting to KSEK 863,781 (598,235).
| IFRS 16 | IAS 17 | |||
|---|---|---|---|---|
| KSEK | Jan–Sep, 2019 |
Change | Jan–Sep, 2019 |
Jan–Sep, 2018 |
| EBITDA | 203,307 | 39,100 | 164,207 | 133,927 |
| Depreciation of property, plant, and equipment | –46,862 | –35,717 | –11,145 | –7,703 |
| EBITA | 156,445 | 3,384 | 153,061 | 126,224 |
| Amortization of intangible assets | –14,254 | – | –14,254 | –14,069 |
| EBIT | 142,191 | 3,384 | 138,807 | 112,155 |
| Net financial items | –6,691 | –5,360 | –1,331 | –2,347 |
| Associated company, profit after tax | 708 | – | 708 | 256 |
| EBT | 136,208 | –1,977 | 138,185 | 110,064 |
| Estimated tax | –40,646 | 585 | –41,232 | –32,852 |
| Profit for the period | 95,562 | –1,391 | 96,953 | 77,212 |
| IFRS 16 | IAS 17 | |||
|---|---|---|---|---|
| KSEK | Sep 30, 2019 |
Change | Sep 30, 2019 |
Sep 30, 2018 |
| ASSETS | ||||
| Goodwill | 543,572 | – | 543,572 | 444,476 |
| Other intangible assets | 82,712 | – | 82,712 | 77,182 |
| Tangible assets | 220,843 | 167,165 | 53,678 | 36,908 |
| Financial assets | 13,736 | – | 13,736 | 13,336 |
| Total non-current assets | 860,863 | 167,165 | 693,698 | 571,901 |
| Trade receivables | 432,603 | – | 432,603 | 368,428 |
| Other current assets | 246,728 | –3,718 | 250,446 | 229,265 |
| Cash and cash equivalents | 270,541 | – | 270,541 | 230,600 |
| Total current assets | 949,872 | –3,718 | 953,590 | 828,292 |
| TOTAL ASSETS | 1,810,735 | 163,447 | 1,647,287 | 1,400,194 |
| EQUITY AND LIABILITIES | ||||
| Equity | 854,204 | –1,460 | 855,664 | 666,408 |
| Provisions | 233,906 | – | 233,906 | 220,455 |
| Non-current liabilities | 228,422 | 120,610 | 107,813 | 81,190 |
| Current liabilities | 494,202 | 44,297 | 449,905 | 432,141 |
| Total liabilities | 956,530 | 164,907 | 791,623 | 733,786 |
| TOTAL EQUITY AND LIABILITIES | 1,810,735 | 163,447 | 1,647,287 | 1,400,194 |
| IFRS 16 | IAS 17 | ||||
|---|---|---|---|---|---|
| KSEK | Jan–Sep 2019 |
Change | Jan–Sep 2019 |
Jan–Sep 2018 |
|
| Cash flow before changes in working capital | 150,652 | 33,740 | 116,912 | 104,369 | |
| Cash flow from changes in working capital | –61,718 | 941 | –62,659 | –43,229 | |
| Cash flow from operating activities | 88,934 | 34,681 | 54,253 | 61,140 | |
| Cash flow from investing activities | –31,691 | – | –31,691 | –25,274 | |
| Cash flow from financing activities | –64,142 | –34,681 | –29,461 | –17,619 | |
| Cash flow for the period | –6,899 | – | –6,899 | 18,246 | |
| Cash and cash equivalents, opening balance | 262,357 | – | 262,357 | 199,876 | |
| Translation differences in cash and cash equivalents | 15,082 | – | 15,082 | 12,478 | |
| Cash and cash equivalents, closing balance | 270,541 | – | 270,541 | 230,600 |
| Jan–Sep 2019 | Jan–Sep 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| MSEK | BTS North America |
BTS Europe |
BTS Other markets |
APG | Total | BTS North America |
BTS Europe |
BTS Other markets |
APG | Total |
| Programs | 343 | 148 | 255 | 68 | 814 | 285 | 130 | 231 | 69 | 716 |
| Development | 194 | 81 | 59 | 0 | 333 | 147 | 68 | 48 | 0 | 263 |
| Licenses | 50 | 17 | 13 | 14 | 93 | 37 | 2 | 12 | 15 | 66 |
| Other revenue | 42 | 17 | 14 | 0 | 72 | 35 | 10 | 13 | 0 | 59 |
| TOTAL | 628 | 262 | 341 | 82 | 1,313 | 504 | 211 | 305 | 84 | 1,104 |
BTS applies IFRS 15 Revenue from contracts with customers from 2018. For more information, see Note 2 Significant accounting policies and Note 9 Segment reporting in the Annual Report 2018.
Earnings attributable to the parent company's shareholders divided by number of shares before dilution.
Operating profit before interest, tax and amortization as a percentage of net sales.
Operating profit after depreciation as a percentage of net sales.
Profit for the period as a percentage of net sales.
Total balance sheet reduced by liquid funds and other interest-bearing assets and reduced by non-interest bearing liabilities.
Operating profit (EBIT) as a percentage of average operating capital.
Profit after tax as a percentage of average equity.
Equity as a percentage of total balance sheet.
BTS focuses on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For more than 30 years, we've been designing fun, powerful experiences™ that have a profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It's strategy made personal.
The global leader in turning strategy into action.
We inspire and equip people to do the best work of their lives, creating better businesses and a better world.
We make strategy personal and drive great execution. Our unforgettable experiences create levels of alignment, mindset, and capability that deliver better results, faster.
BTS's financial goals over time are to reach:
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