Earnings Release • Jul 18, 2018
Earnings Release
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| Q2 | Q2 | H1 | H1 | LTM | FY | |
|---|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| Net sales | 5,260 | 3,949 | 9,703 | 7,393 | 16,354 | 14,044 |
| EBITDA | 1,048 | 729 | 1,809 | 1,224 | 2,813 | 2,228 |
| % of net sales | 19.9% | 18.5% | 18.6% | 16.6% | 17.2% | 15.9% |
| Operating profit (EBIT) | 919 | 650 | 1,557 | 1,067 | 2,396 | 1,907 |
| % of net sales | 17.5% | 16.5% | 16.0% | 14.4% | 14.7% | 13.6% |
| Operating profit (EBIT) before items affecting comparability | 919 | 650 | 1,557 | 1,067 | 2,349 | 1,860 |
| % of net sales | 17.5% | 16.5% | 16.0% | 14.4% | 14.4% | 13.2% |
| Profit for the period | 629 | 474 | 1,004 | 770 | 1,729 | 1,495 |
| Earnings per share, SEK | 2.13 | 1.60 | 3.39 | 2.60 | 5.84 | 5.05 |
| Cash flow for the period | 3 | -29 | -113 | -412 | -118 | -417 |
| Operating cash flow⁽¹⁾ | 943 | 570 | 916 | 526 | 2,117 | 1,727 |
| Core working capital | 4,633 | 3,304 | 4,633 | 3,304 | 4,633 | 3,376 |
| Capital expenditure in fixed assets | -127 | -71 | -205 | -134 | -377 | -306 |
| RoOC | 32.1% | 32.4% | 32.1% | 32.4% | 32.1% | 33.0% |
⁽¹⁾Net cash flow from operations after investments in fixed assets and excluding income tax paid.
Operating profit (EBIT) before i.a.c
I am pleased to conclude a second quarter in which we performed well in capturing underlying market growth and improved EBIT margin in all regions. Total sales grew by 33 percent of which 9 percent was organic, with growth in RV still on high levels and good development for CPV and Aftermarket. The EBIT-margin improved by 1.0 percentage points, despite headwinds from raw material prices.
Americas reported organic growth of 11 percent. The EBIT margin improved by 1.2 percentage points. The underlying margin was negatively impacted by commodity prices and business mix due to high growth in RV OEM of 15 percent. Our efforts to establish dedicated, local organizations for Mobile Cooling and CPV are generating traction through increased market presence and focus. During the quarter, we saw some increased cost releated to further acceleration of these initiatives. SeaStar performed well in the quarter, especially in the Aftermarket.
EMEA reported organic growth of 6 percent and an EBIT margin improvement of 1.1 percentage points. The region reported good OEM performance for RV, CPV and Marine. Despite a cold spring, we also saw a good recovery in the Aftermarket sales especially in the RV AM and CPV AM with 7-8 percent respectively. The activities from our profitability program are yielding results, as a consequence of improved efficiencies and better pricing discipline.
APAC reported organic growth of 7 percent. The EBIT margin improved by 0.3 percentage points, to 23.6%. Aftermarket grew by 9 percent, mainly driven by RV, Retail and CPV.
Operating cash flow increased by 65 percent compared with the same quarter last year. Leverage was at 3.4x at the end of the quarter, and was negatively affected by exchange rate movements. In constant currency, leverage was 3.2x. We expect to see a quick deleveraging in the second half of the year.
Dometic has seen a solid first half of 2018, with organic growth of 9 percent and the EBIT margin has improved by 1.6 percentage points to 16 percent. Total sales were close to SEK 10 billion and EBIT was over SEK 1.5 billion, making us a more robust company. Pricing initiatives have been successfully implemented, the EMEA region has done well in executing the profitability program activities and SeaStar has delivered according to expectations.
A new Head of Group Operations was appointed in May, a key position to improve process ownership and increase efficiency throughout our global operations. I am also pleased to see that the R&D organization is starting to formalize clear strategic measures and long-term plans to build a truly global innovation platform.
The outlook for our combined businesses remains unchanged with an estimated organic growth in line with our target of 5 percent. With the acquisition of SeaStar, combined with continued efficiency improvements, we are aiming at reaching our target of 15 percent EBIT margin during 2018. Leverage is expected to be around 2.5x by the end of 2018.
Juan Vargues, President and CEO
Net sales was SEK 5,260 m (3,949), an increase of 33% compared with the same quarter last year. This comprised 9% organic growth, 3% currency translation and 21% M&A.
Operating profit (EBIT) was SEK 919 m (650), an increase of 41% compared with the same quarter last year. The EBIT margin was 17.5% (16.5%). Excluding SeaStar, the EBIT margin was 16.5%.
Financial items totaled a net amount of SEK -72 m (-32), including SEK -103 m in interest on external bank loans (-25) and SEK 19 m for the revaluation of unrealized exchange gains on cash (-7). Other FX revaluations and other items amounted to SEK 11 m (-1) and financial income to SEK 1 m (1).
Taxes totaled SEK -218 m (-144), corresponding to 26% (23%) of profit before tax. Current tax amounted to SEK -105 m (-44) and deferred tax to SEK -113 m (-100). Paid tax of 16% is higher compared with the same quarter last year, mainly due to the Group's tax paying position in the U.S. and Canada.
Profit for the quarter was SEK 629 m (474).
Earnings per share was SEK 2.13 (1.60).
Operating cash flow was SEK 943 m (570). The improvement was due to a stronger operating profit.
Cash flow for the quarter was SEK 3 m (-29).
Financial position. Leverage was 3.4x (1.7) at the end of the second quarter of 2018.
Net sales was SEK 9,703 m (7,393), an increase of 31% compared with the same period last year. This comprised 9% organic growth, 1% currency translation and 21% M&A.
Operating profit (EBIT) was SEK 1,557 m (1,067), an increase of 46% compared with same period last year. The EBIT margin was 16.0% (14.4%). Excluding SeaStar, the EBIT margin was 15.3%.
Items affecting comparability totaled SEK 0 m (0).
Financial items totaled a net amount of SEK -199 m (-63), including SEK -199 m in interest on external bank loans (-51) and SEK -15 m for the revaluation of unrealized exchange gains on cash (0). Other FX revaluations and other items amounted to SEK 11 m (-14) and financial income to SEK 4 m (1).
Taxes totaled SEK -354 m (-234), corresponding to 26% (23%) of profit before tax. Current tax amounted to SEK -171 m (-95) and deferred tax to SEK -183 m (-139).
Profit for the period was SEK 1,004 m (770).
Earnings per share was SEK 3.39 (2.60).
Operating cash flow was SEK 916 m (526).
Cash flow for the period was SEK -113 m (-412).
Significant events after the quarter. There were no significant events after the quarter.
| Q2 | Q2 | Change (%) | H1 | H1 | Change (%) | LTM | FY | |||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | Rep. Adj.⁽¹⁾ | 2018 | 2017 | Rep. Adj.⁽¹⁾ | 2018 | 2017 | ||
| Americas ⁽³⁾ | 2,736 | 1,692 | 62% | 62% | 5,024 | 3,198 | 57% | 62% | 8,154 | 6,329 |
| EMEA | 2,064 | 1,833 | 13% | 6% | 3,760 | 3,360 | 12% | 7% | 6,362 | 5,962 |
| Asia Pacific | 460 | 424 | 9% | 7% | 919 | 835 | 10% | 12% | 1,838 | 1,753 |
| Net sales | 5,260 | 3,949 | 33% | 30% | 9,703 | 7,393 | 31% | 30% | 16,354 | 14,044 |
| Americas ⁽³⁾ | 475 | 274 | 73% | 74% | 809 | 438 | 85% | 91% | 1,256 | 885 |
| EMEA | 335 | 277 | 21% | 14% | 544 | 439 | 24% | 18% | 723 | 618 |
| Asia Pacific | 109 | 99 | 10% | 8% | 204 | 190 | 7% | 8% | 370 | 357 |
| Operating profit (EBIT) bef. i.a.c.⁽²⁾ | 919 | 650 | 41% | 37% | 1,557 | 1,067 | 46% | 45% | 2,349 | 1,860 |
| Americas ⁽³⁾ | 17.4% | 16.2% | 16.1% | 13.7% | 15.4% | 14.0% | ||||
| EMEA | 16.2% | 15.1% | 14.5% | 13.1% | 11.4% | 10.4% | ||||
| Asia Pacific | 23.6% | 23.3% | 22.2% | 22.8% | 20.2% | 20.4% | ||||
| Operating profit % bef. i.a.c.⁽²⁾ | 17.5% | 16.5% | 16.0% | 14.4% | 14.4% | 13.2% |
⁽¹⁾Represents change in comparable currency. ⁽²⁾Before items affecting comparability. ⁽³⁾Including SeaStar Solutions.
Sales split AM/OEM
OPERATING MARGIN (EBIT%)¹
Second quarter 2018
Americas reported net sales of SEK 2,736 m (1,692), representing 52% of Group sales. Total growth was 62%, of which 11% was organic growth, 1% currency translation and 50% M&A.
Operating profit (EBIT) was SEK 475 m (274); an increase of 73% compared with the same quarter last year. The EBIT margin was 17.4% (16.2%).
Items affecting comparability totaled SEK 0 m (0).
For the rolling three-month period March – May 2018, US RV shipments increased by 6% to 144,119 units compared with the same period last year. For the January – May period 2018, RV shipments increased by 10% to 229,598 units.
Sales of US power boats increased by 3% for the rolling 12-month period from June 2017 – May 2018.
Total OEM sales growth was 59%, of which growth in constant currency adjusted for the acquisition of SeaStar was 15%.
Total Aftermarket sales growth was 68%, of which growth in constant currency adjusted for the acquisition of SeaStar was 6%.
RV OEM reported strong sales growth and demand remain solid.
Marine OEM excluding SeaStar reported good sales growth. SeaStar performed well with good sales growth and profitability.
CPV OEM reported strong sales growth. Efforts to establish a dedicated team continue and yield good results.
Aftermarket, excluding SeaStar, reported good sales growth mainly driven by very strong Retail and good RV AM sales.
Proceedings related to the putative class action complaints continue; After the court in California granted Dometic's requests to transfer the cases pending in California to the Southern District of Florida, the proceedings in California are closed.
All cases have now been consolidated in front of the same judge who previously granted summary judgment in favor of Dometic.
We remain firm in our position that the allegations in the cases are without merit.
Q2
(15.1%)
Second quarter 2018
EMEA reported net sales of SEK 2,064 m (1,833), representing 39% of Group sales. Total growth was 13%, of which 6% was organic growth, 7% currency translation and 0% M&A.
Operating profit (EBIT) was SEK 335 m (277); an increase of 21% compared with the same quarter last year. The EBIT margin was 16.2% (15.1%). The EMEA profitability improvement program is progressing according to plan.
Items affecting comparability totaled SEK 0 m (0).
For the rolling three-month period March – May 2018, RV registrations in the largest European markets, excluding the UK and Spain, increased by 3% to 52,585 units. For the January – May period 2018, RV registrations increased by 8% to 67,073 units.
Heavy truck registrations increased by 0% in the rolling three-month period March – May 2018, compared with the same period last year.
Total OEM sales growth was 15%, of which growth in constant currency was 8%. Total Aftermarket sales growth was 11%, of which growth in constant currency was 5%.
RV OEM reported good sales growth. Demand remained positive on key European markets.
Marine OEM reported high sales growth.
CPV OEM reported strong sales growth. There was high demand in the passenger vehicle segment and a solid performance in the commercial vehicle segment.
Aftermarket reported good sales growth and margin improvement, mainly driven by RV AM and CPV AM.
Q2
NET SALES 460 SEK MILLION (424)
OPERATING PROFIT (EBIT)¹ 109
SEK MILLION (99)
OPERATING MARGIN (EBIT%)¹
¹ Before i.a.c.
Second quarter 2018
APAC reported net sales of SEK 460 m (424), representing 9% of Group sales. Total growth was 9%, of which 7% was organic growth, 2% currency translation and 0% M&A.
Operating profit (EBIT) was SEK 109 m (99), an increase of 10% compared with the same quarter last year. The EBIT margin was 23.6% (23.3%).
Items affecting comparability totaled SEK 0 m (0).
For the rolling three-month period March – May 2018, Australian domestic RV production decreased by -4% to 5,819 units. For the January – May period 2018 RV production increased by 1% to 8,946 units.
Total OEM sales growth was 7%, of which growth in constant currency was 6%. Total Aftermarket sales growth was 11%, of which growth in constant currency was 9%.
RV OEM reported strong sales growth, with double-digit growth in Asia. Good performance in Australia and New Zeeland.
Marine OEM reported good development. Strong sales growth in Pacific, whilst somewhat weaker in Asia.
CPV OEM reported good performance. Profitability was positively affected by the termination of inverter sales in China.
Aftermarket reported high sales growth. Sales was mainly driven by the Retail, RV and CPV business areas.
Second quarter
The Parent Company Dometic Group AB (publ) comprises the functions of the Group's head office, such as Group-wide management and administration. The Parent Company invoices its costs to Group Companies.
For the second quarter of 2018, the Parent Company had an operating profit of SEK -5 m (5), including administrative expenses of SEK -54 m (-32) and other operating income of SEK 49 m (37), of which the full amount relates to income from Group subsidiaries.
Profit (loss) from financial items totaled SEK -312 m (113), including interest income from Group subsidiaries of SEK 61 m (4), interest expenses to Group subsidiaries of SEK 0 m (0) and other financial income and expenses of SEK -373 m (109).
Profit (loss) for the quarter amounted to SEK -2 m (-15).
For the first six months of 2018, the Parent Company had an operating profit (loss) of SEK -6 m (2), including administrative expenses of SEK -92 m (-68) and other operating income of SEK 86 m (70), of which the full amount relates to income from Group subsidiaries.
Profit (loss) from financial items totaled SEK -519 m (128), including interest income from Group subsidiaries of SEK 117 m (28), interest expenses to Group subsidiaries of SEK 0 m (0) and other financial income and expenses of SEK -636 m (100).
Profit (loss) for the first six months amounted to SEK -5 m (-3).
For further information, please refer to the Parent Company's condensed financial statements on page 11.
The Board of Directors and the President and CEO certify that the Interim Report gives a true and fair overview of the Parent Company's operations, their financial position and results of operations, and describes the significant risks and uncertainties facing the Parent Company and other companies in the Group.
Solna, July 18, 2018
Fredrik Cappelen Chairman of the Board
Rainer E. Schmückle Board member
Heléne Vibbleus Board member
Jacqueline Hoogerbrugge Board member
Magnus Yngen Board member
Erik Olsson Board member
Peter Sjölander Board member
Juan Vargues President and CEO
This interim report has not been subject to special review by the Dometic Group AB (publ)'s external auditor.
| Q2 | Q2 | H1 | H1 | FY | |
|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2017 |
| Net sales | 5,260 | 3,949 | 9,703 | 7,393 | 14,044 |
| Cost of goods sold | -3,503 | -2,637 | -6,567 | -4,996 | -9,599 |
| Gross Profit | 1,757 | 1,312 | 3,136 | 2,397 | 4,445 |
| Sales expenses | -591 | -458 | -1,117 | -909 | -1,791 |
| Administrative expenses | -226 | -170 | -417 | -359 | -667 |
| Other operating income and expenses | 32 | -17 | 62 | -27 | -52 |
| Items affecting comparability | 0 | 0 | 0 | 0 | 47 |
| Amortization of acquisition related intangible assets | -54 | -17 | -105 | -35 | -76 |
| Operating profit | 919 | 650 | 1,557 | 1,067 | 1,907 |
| Financial income | 1 | 1 | 4 | 1 | 6 |
| Financial expenses | -73 | -33 | -203 | -64 | -212 |
| Loss from financial items | -72 | -32 | -199 | -63 | -206 |
| Profit before tax | 847 | 618 | 1,358 | 1,004 | 1,700 |
| Taxes | -218 | -144 | -354 | -234 | -206 |
| Profit for the period | 629 | 474 | 1,004 | 770 | 1,495 |
| Profit for the period attributable to owners of the Parent Company | 629 | 474 | 1,004 | 770 | 1,495 |
| Earnings per share before and after dilution effects, SEK - Owners of the Parent Company |
2.13 | 1.60 | 3.39 | 2.60 | 5.05 |
| Number of shares, million | 295.8 | 295.8 | 295.8 | 295.8 | 295.8 |
| Q2 | Q2 | H1 | H1 | FY | |
|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2017 |
| Profit for the period | 629 | 474 | 1,004 | 770 | 1,495 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to profit or loss: | |||||
| Remeasurements of defined benefit pension plans, net of tax | 9 | -1 | 30 | -3 | 0 |
| 9 | -1 | 30 | -3 | 0 | |
| Items that may be reclassified subsequently to profit or loss: | |||||
| Cash flow hedges, net of tax | -21 | -11 | 12 | -7 | 25 |
| Gains/losses from hedges of net investments in foreign operations, | |||||
| net of tax | -19 | 57 | -84 | 41 | 66 |
| Exchange rate differences on translation of foreign operations | 650 | -440 | 954 | -405 | -502 |
| 610 | -394 | 882 | -371 | -411 | |
| Other comprehensive income for the period | 619 | -395 | 912 | -374 | -411 |
| Total comprehensive income for the period | 1,248 | 79 | 1,916 | 396 | 1,084 |
| Total comprehensive income for the period attributable to owners of the | |||||
| Parent Company | 1,248 | 79 | 1,916 | 396 | 1,084 |
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK m | 2018 | 2017 | 2017 |
| ASSETS | |||
| Non-current assets | |||
| Goodwill and trademarks | 18,193 | 12,486 | 17,016 |
| Other intangible assets | 4,455 | 975 | 4,260 |
| Tangible assets | 2,107 | 1,575 | 1,952 |
| Deferred tax assets | 732 | 1,062 | 897 |
| Derivatives, long-term | 11 | 3 | 1 |
| Other non-current assets | 73 | 56 | 65 |
| Total non-current assets | 25,571 | 16,157 | 24,191 |
| Current assets | |||
| Inventories | 3,707 | 2,697 | 3,350 |
| Trade receivables | 2,520 | 1,915 | 1,485 |
| Current tax assets | 226 | 53 | 180 |
| Derivatives, short-term | 110 | 37 | 90 |
| Other current assets | 577 | 286 | 418 |
| Prepaid expenses and accrued income | 126 | 99 | 132 |
| Cash and cash equivalents | 1,089 | 1,169 | 1,159 |
| Total current assets | 8,355 | 6,256 | 6,814 |
| TOTAL ASSETS | 33,926 | 22,413 | 31,005 |
| EQUITY AND LIABILITIES EQUITY |
15,824 | 13,826 | 14,514 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Liabilities to credit institutions, long-term | 10,457 | 4,205 | 9,810 |
| Deferred tax liabilities | 2,016 | 593 | 1,901 |
| Other non-current liabilities | 44 | 16 | – |
| Provisions for pensions | 697 | 534 | 687 |
| Other provisions, long-term | 152 | 124 | 131 |
| Total non-current liabilities | 13,366 | 5,472 | 12,529 |
| Current liabilities | |||
| Liabilities to credit institutions, short-term | 1,141 | 339 | 733 |
| Trade payables | 1,595 | 1,308 | 1,459 |
| Current tax liabilities | 337 | 336 | 371 |
| Advance payments from customers | 38 | 20 | 23 |
| Derivatives, short-term | 68 | 38 | 45 |
| Other provisions, short-term | 307 | 206 | 289 |
| Other current liabilities | 361 | 211 | 264 |
| Accrued expenses and prepaid income | 889 | 657 | 778 |
| Total current liabilities | 4,736 | 3,115 | 3,962 |
| TOTAL LIABILITIES | 18,102 | 8,587 | 16,491 |
| TOTAL EQUITY AND LIABILITIES | 33,926 | 22,413 | 31,005 |
| H1 | H1 | FY | |
|---|---|---|---|
| SEK m | 2018 | 2017 | 2017 |
| Opening balance of the period | 14,514 | 13,977 | 13,977 |
| Profit for the period | 1,004 | 770 | 1,495 |
| Other comprehensive income for the period | 912 | -374 | -411 |
| Total comprehensive income for the period | 1,916 | 396 | 1,084 |
| Transactions with owners | |||
| Dividend to shareholders of the Parent Company | -606 | -547 | -547 |
| Total transactions with owners | -606 | -547 | -547 |
| Closing balance of the period | 15,824 | 13,826 | 14,514 |
| Q2 | Q2 | H1 | H1 | FY | |
|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2017 |
| Cash flow from operations | |||||
| Operating profit | 919 | 650 | 1,557 | 1,067 | 1,907 |
| Adjustment for other non-cash items | |||||
| Depreciation and amortization | 129 | 79 | 252 | 157 | 321 |
| Adjustments for other non-cash items | 97 | -2 | 69 | -2 | -99 |
| Changes in working capital | |||||
| Changes in inventories | 157 | 14 | -97 | -117 | -361 |
| Changes in trade receivables | -286 | -255 | -910 | -893 | -151 |
| Changes in trade payables | -20 | 100 | 32 | 323 | 296 |
| Changes in other working capital | 74 | 55 | 218 | 125 | 120 |
| Income tax paid | -139 | -44 | -236 | -39 | -105 |
| Net cash flow from operations | 931 | 597 | 885 | 621 | 1,928 |
| Cash flow from investments | |||||
| Acquisition of operations | 16 | – | 16 | -187 | -7,482 |
| Investments in fixed assets | -127 | -71 | -205 | -134 | -306 |
| Proceeds from sale of fixed assets | 2 | 1 | 67 | 1 | 139 |
| Deposit | 0 | – | -233 | – | – |
| Other investing activities | -2 | -1 | -3 | -2 | -4 |
| Net cash flow from investments | -111 | -71 | -358 | -322 | -7,653 |
| Cash flow from financing | |||||
| Borrowings from credit institutions | -104 | 36 | 438 | 36 | 6,301 |
| Repayment of loans to credit institutions | – | -5 | -233 | -117 | -229 |
| Paid interest | -100 | -25 | -187 | -51 | -99 |
| Received interest | 1 | 1 | 2 | 1 | 5 |
| Other financing activities | -7 | -15 | -53 | -33 | -122 |
| Dividend paid out to shareholders of the Parent Company | -606 | -547 | -606 | -547 | -547 |
| Net cash flow from financing | -817 | -555 | -639 | -711 | 5,308 |
| Cash flow for the period | 3 | -29 | -113 | -412 | -417 |
| Cash and cash equivalents at beginning of period | 1,066 | 1,213 | 1,159 | 1,599 | 1,599 |
| Exchange differences on cash and cash equivalents | 20 | -15 | 43 | -18 | -23 |
| Cash and cash equivalents at end of period | 1,089 | 1,169 | 1,089 | 1,169 | 1,159 |
| Q2 | Q2 | H1 | H1 | FY | |
|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2017 |
| Administrative expenses | -54 | -32 | -92 | -68 | -133 |
| Other operating income | 49 | 37 | 86 | 70 | 130 |
| Operating profit | -5 | 5 | -6 | 2 | -3 |
| Interest income subsidiaries | 61 | 4 | 117 | 28 | 50 |
| Interest expenses subsidiaries | 0 | 0 | 0 | 0 | – |
| Other financial income and expenses | -373 | 109 | -636 | 100 | -77 |
| Profit (loss) from financial items | -312 | 113 | -519 | 128 | -28 |
| Group contributions | 315 | -133 | 520 | -133 | -157 |
| Profit (loss) before tax | -2 | -15 | -5 | -3 | -188 |
| Taxes | 0 | 0 | 0 | 0 | 2 |
| Profit (loss) for the period | -2 | -15 | -5 | -3 | -186 |
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK m | 2018 | 2017 | 2017 |
| ASSETS | |||
| Shares in subsidiaries | 16,622 | 13,563 | 16,622 |
| Other non-current assets | 5,575 | 16 | 5,116 |
| Total non-current assets | 22,197 | 13,579 | 21,738 |
| Current assets | 758 | 2,070 | 893 |
| TOTAL ASSETS | 22,955 | 15,649 | 22,631 |
| EQUITY | 10,234 | 11,028 | 10,845 |
| PROVISIONS | |||
| Provisions | 34 | 14 | 27 |
| Total provisions | 34 | 14 | 27 |
| LIABILITIES | |||
| Non-current liabilities | 10,457 | 4,205 | 9,810 |
| Total non-current liabilities | 10,457 | 4,205 | 9,810 |
| Current liabilities | 2,230 | 402 | 1,949 |
| Total current liabilities | 2,230 | 402 | 1,949 |
| TOTAL EQUITY AND LIABILITIES | 22,955 | 15,649 | 22,631 |
Dometic Group AB (publ) ("Dometic") applies International Financial Reporting Standards (IFRS), as adopted by the EU. This consolidated Interim Financial Report has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities, issued by the Swedish Financial Reporting Board, have been applied for the Parent Company. The interim report comprises pages 1-19 and pages 1-7 are thus an integral part of this financial report (IAS 34.16A).
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is for each line item to correspond to its source, and rounding differences may therefore arise.
The Group has adopted IFRS 15 Revenue from Contracts with Customers. This supersedes all current revenue recognition requirements under IFRS. The Group has chosen to use the full retrospective transition method. The standard came into effect as of January 1, 2018. The Group concluded that comparative figures for the 2017 financial year do not need to be restated since the impact is immaterial, which is why there is no effect in the first half year 2018. Consequently, no transition provision was required to be disclosed at the end of December 2017. The accounting policies for the Group's main type of revenue are described below.
The standard IFRS 9 Financial instruments is also adopted and came into effect as of January 1, 2018.
As described above, the accounting principles applied correspond to those described in the 2017 Annual Report, with the exception of IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, for which there are changes to Dometic's accounting and valuation principles compared with the principles described in Notes 2 and 4 of the 2017 Annual Report.
The detailed description of the accounting and valuation principles applied by the Group in this interim report are to be read in addition to descriptions found in Notes 1, 2 and 4 of the 2017 Annual Report, available at www.dometic.com.
The following information should be considered in addition to the description of the new accounting standards and related activities provided in the 2017 Annual Report, Note 2.
Dometic is currently assessing the impact of the new standard. Ongoing activities include further analysis of lease terms in agreements. Indications so far in the investigation phase, during which contracts have been compiled and analyzed at a high level, are that some impact is expected on financial reporting as of 2019. Note 8 in the Annual Report discloses the future cash flows for current operating leases. These cash flows, discounted to present value, may provide an indication of the increase in assets and liabilities that the Group will see in the balance sheet.
The Group is not able to quantify the impact on its consolidated financial statements at this stage of the project.
For the IFRS 16 transition, Dometic has decided to use the modified retrospective approach.
The standard is effective as of January 1, 2019. Dometic will not adopt earlier application.
Accounting principles to be read in addition to the descriptions in Notes 1, 2 and 4 of the 2017 Annual Report
Revenue recognition in Dometic Group is based on IFRS 15 – Revenue from Contracts with Customers. This standard specifies the requirements for recognizing revenue from all contracts with customers, except for contracts that are within the scope of the Standards on leasing, insurance contracts and financial instruments.
Dometic is in the business of manufacturing and selling a diverse range of products within Climate, Hygiene & Sanitation, Food & Beverage, Power & Control and Safety & Security. These products are primarily for use in Recreational Vehicles, pleasure boats, work boats, trucks and premium cars.
Products in the area of Mobile living are sold via the two sales channels Original Equipment Manufacturer (OEM) and Aftermarket (AM).
The new revenue model is made up of a series of steps required to help entities determine when and how much revenue to recognize.
In the first step of the revenue model, the Group identifies the contract with a customer. This is then followed by the second step, in which the various goods and services that need to be accounted for separately, or distinct performance obligations, are identified. In the third step, the Group determines the transaction price, which is the total amount to which the Group expects to be entitled, and then in the fourth step the transaction price is allocated to the distinct performance obligations. Finally, the amount of revenue allocated to each distinct performance obligation is recognized either at a point in time or over a period of time, depending on when the customer acquires control over the promised goods or services in that performance obligation.
Purchase orders from the customer, which is the most common way of ordering goods, qualify as an IFRS 15 contract, including all enforceable rights and obligations required.
The promises are all distinct, since the customer can benefit from the goods on their own and the service (if included in a contract) together with the readily available goods. Each promise (performance obligation) is accounted for separately.
In the rare cases where the Group offers installation services, revenue for that performance obligation is recognized over the
contract period during which the service is provided. At present, the service part of the Group's revenue is immaterial, which is why revenue over time is not separately presented in the disclosures.
Sales are recorded based on the price specified in the customer agreements, net of the estimated discounts and returns at the time of sale. Accumulated experience is used to estimate and provide for the discounts and returns. If the consideration includes a variable amount, the transaction price includes an estimate of what the entity will be entitled to receive. Estimated discounts are accounted for at the time of the sale and simultaneously reduce external revenue. The amount is estimated by using either the expected value or the most likely amount.
The revenue estimate is included in the transaction price only if it is highly probable that there will not be a significant reversal in the amount of cumulative revenue recognized.
Revenue is recognized when the Group has fulfilled its performance obligation, which means the Group has transferred the promised good or service to the customer. The goods or service are regarded as transferred when the customer has obtained control of the good or service. Revenue from the sale of goods and services is recognized in a pattern that reflects the transfer of control of the promised goods or service to the customer, and this takes place when the customer has obtained the ability to direct the use of the goods and obtained substantially all remaining benefits from the asset.
Control either transfers to the customer over time or at a point in time, and this is determined at contract inception. The assessment of whether control transfers over time or at a point in time is critical to the timing of revenue recognition, since revenue is recorded when or as control transfers.
The Group has a limited number of arrangements where the performance obligations are satisfied over time, including some services but also a small volume of customized goods constructed for customers. To achieve valid revenue timing, progress toward satisfaction of a performance obligation must be measured.
Indicators for the transfer of control at a point in time for goods are if the Group has a right to payment for the goods or if the customer has legal title to the goods. Other indicators which the Group considers are if the Group has transferred physical possession of the goods and if the customer has the significant risks and rewards related to the ownership of the goods.
Additionally, the Group considers whether the customer has accepted the goods in accordance with the customer acceptance clause.
International commercial terms are important as a checkpoint, to determine when control transfers to a customer. The Group must use judgement to determine whether all relevant IFRS control factors collectively indicate that the customer has obtained control before recognizing revenue.
If the timing of the payment of the consideration is in advance or deferred and the timing provides a significant financing benefit, the payments are adjusted for the time value of money. However, since sales are normally made with a credit term of 30- 60 days, which is consistent with market practice, no element of financing is considered to exist.
Revenue is not recognized for products expected to be returned in cases where the customer has a contractual right of return. A liability for the refund (refund accrual) and an asset plus a corresponding adjustment to cost of goods sold for the right to recover products from customers on settling the refund accrual is recorded.
Dometic offers a standard warranty, normally of between two and three years. In some cases, an extended warranty may be offered to the customer. The standard warranty is recorded as a provision and a warranty cost in the income statement, whereas the extended warranty is a separate performance obligation. The portion of the transaction price in the contract that is allocated to the extended warranty is accounted for as revenue over the term of the warranty period.
IFRS 9 Financial instruments addresses the classification, recognition, measurement and impairment of financial instruments and hedge accounting. The standard replaces the earlier IAS 39 standard and is effective from January 1, 2018, although early adoption is permitted.
Dometic will apply the new standards effective from January 1, 2018, with no comparative historical adjustments as permitted by the standard.
Dometic has reviewed the standard during latter 2016 and 2017 with the conclusion presented in the Annual report 2017 that the new rules regarding classification and valuation have an immaterial impact on Dometic Group. As a result of this, no material transition effects have been identified and no transition effect is recorded in the group financial statements on December 31, 2017.
Dometic determined that all existing hedge relationships that are currently designated in effective hedging relationships will continue to qualify for hedge accounting under IFRS 9.
Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit and loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement. Financial assets are derecognized when the rights to receive cash flows from the investments have expired and substantially all risks and rewards of ownership are transferred. Regular way purchases and sales of financial assets are recognized on tradedate, the date on which the Group commits to purchase or sell the asset.
Dometic classifies and measures its financial assets in the following categories: Amortized cost and fair value through profit and loss.
a) Amortized costs: The Group's financial assets at amortized cost comprise trade receivables and other receivables as well as cash and cash equivalents in the balance sheet. The objective of holding these financial assets is to collect the contractual cash flows, thus the "hold to collect" business model. The cash flows from these assets are solely payment of principal and interest, and are therefore measured at amortized cost. Selling or trading these financial assets are not part of the business model. If a sale would occur, it would be incidental and low frequent.
Trade receivables within this category are amounts due from customers in the ordinary course of
business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
b) Fair value through profit and loss: Financial derivatives that are not subject to hedge accounting are always recognized at fair value through profit and loss. Valuation of financial derivatives at fair value is done at the most recent updated market prices. Gains or losses arising from changes in the fair value of the "financial assets at fair value through profit or loss" category is presented in the operating result or financial net in the income statement depending on the nature of the economic relationship with the underlying asset.
Assets are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current. Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities later than 12 months after the balance sheet date.
The Group has revised its impairment methodology for financial assets subject to IFRS 9's impairment model for financial assets leading to a so called expected credit loss model. With start on January 1, 2018, Dometic recognizes expected credit losses over the expected life of the trade receivables. Historical information by legal entity is used regarding credit loss experience and ageing to forecast future credit losses. In addition, current and forward-looking information by legal entity is used to reflect current and expected future losses. To support and harmonize the organization, a calculation matrix for calculating expected credit losses has been developed by headquarters and distributed to the relevant functions throughout the Group.
Dometic applies the simplified approach to measure life time expected credit losses for trade receivables to provide for losses each closing. The new model changed the loss allowance immaterially.
Financial liabilities are recognized initially at fair value, net of transaction costs incurred. Liabilities to credit institutions are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates. Liabilities to credit institutions are classified as current liabilities unless the Group has the right to defer settlement of the liability for at least 12 months after the balance sheet date. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
Financial assets and liabilities are offset and the net amount reported in the balance sheet, when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability.
Derivative financial instruments and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The derivatives in Dometic hedge a particular risk associated with a recognized asset or liability or a highly probable forecast transaction (cash flow hedge).
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income, and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in the income statement. Amounts accumulated in equity are accounted for in the income statement in the periods when the hedged item affects profit or loss. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings are recognized in the financial net. The gain or loss relating to the ineffective portion is also recognized in the financial net. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the income statement.
Dometic applies hedge accounting for net investment in foreign operations. Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in other comprehensive income and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss within other income or other expenses. Gains and losses accumulated in equity are reclassified to profit or loss when the foreign operation is sold.
As all businesses, Dometic is exposed to a number of risks that could have a material impact on the Group. These risks are factors that impact Dometic's ability to achieve established Group targets. This applies to both financial targets and targets in other areas outlined in Dometic's business strategy. Dometic performs an annual risk analysis by assessing each defined risk's likelihood and impact in a risk register, resulting in global and regional risk maps presented to Group management and the Board of Directors and used as a foundation for the control activities within Dometic. The risks that Dometic is exposed to are classified into four main categories (business and market risks, operational risks, compliance and regulatory risks and financial risks) where each category has underlying risks. These risks can be both internal and external. Internal risks are mainly managed and controlled by Dometic whereas external risk factors are not caused nor can be controlled by Dometic but the effects can be limited by an effective risk management.
Dometic is subject to transaction risks at the time of purchasing and selling, as well as when conducting financial transactions. Transaction exposure is primarily related to the currencies EUR, USD and AUD. As the majority of the Group's profit is generated
outside Sweden, the Group is also exposed to translational risks in all the major currencies.
Efficient risk management is a continual process conducted within the framework of business control, and is part of the ongoing review of operations and forward-looking assessment of operations. In the preparation of financial reports, the Board of Directors and Group management are required to make estimates and judgments. These estimates and judgments impact the income statement and balance sheet, as well as the disclosures. The actual outcome may differ from these estimates and judgments under different circumstances and conditions. Dometic's future risk exposure is assumed not to deviate from the inherent exposure associated with Dometic's ongoing business operations. For a more in-depth analysis of risks and risk management, please refer to Dometic's 2017 Annual Report.
Dometic uses interest rate swaps to hedge senior facility term loans to move from a floating interest rate to a fixed interest rate. The Group also uses currency forward agreements to hedge part of its cash flow exposure.
The fair value of Dometic's derivative asset and liabilities were SEK 121 m (Q2 2017: SEK 40 m) and SEK 68 m, (Q2 2017: SEK 38 m). The value of derivatives is based on published prices in an active market. No transfers between levels of the fair value hierarchy have occurred during the period.
For financial assets and liabilities other than derivatives, fair value is assumed to be equal to the carrying amount.
| Jun 30, 2018 | Balance sheet carrying amount |
Financial instruments at amortized cost |
Financial instruments at fair value |
Derivatives used for hedging |
|---|---|---|---|---|
| Per category | ||||
| Derivatives | 121 | – | 17 | 104 |
| Financial assets | 4,260 | 4,260 | – | – |
| Total financial assets | 4,381 | 4,260 | 17 | 104 |
| Derivatives | 68 | – | 23 | 45 |
| Financial liabilities | 13,554 | 13,554 | – | – |
| Total financial liabilities | 13,622 | 13,554 | 23 | 45 |
| Q2 | Q2 | H1 | H1 | FY | |
|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2017 |
| Net sales, external | |||||
| Americas ⁽¹⁾ | |||||
| OEM | 1,811 | 1,140 | 3,542 | 2,270 | 4,576 |
| Aftermarket | 925 | 552 | 1,482 | 928 | 1,753 |
| Americas net sales, external | 2,736 | 1,692 | 5,024 | 3,198 | 6,329 |
| RV | 1,620 | 1,436 | 2,990 | 2,718 | 5,341 |
| Marine | 1,012 | 155 | 1,850 | 301 | 651 |
| CPV | 58 | 56 | 109 | 108 | 208 |
| Other (Lodging and Retail) | 46 | 45 | 75 | 70 | 128 |
| Americas net sales, external | 2,736 | 1,692 | 5,024 | 3,198 | 6,329 |
| EMEA | |||||
| OEM | 955 | 832 | 1,879 | 1,664 | 3,154 |
| Aftermarket | 1,108 | 1,002 | 1,881 | 1,696 | 2,808 |
| EMEA net sales, external | 2,064 | 1,833 | 3,760 | 3,360 | 5,962 |
| RV | 900 | 797 | 1,756 | 1,575 | 2,821 |
| Marine | 224 | 204 | 415 | 385 | 725 |
| CPV | 555 | 475 | 963 | 857 | 1,553 |
| Other (Lodging and Retail) | 385 | 358 | 625 | 544 | 863 |
| EMEA net sales, external | 2,064 | 1,833 | 3,760 | 3,360 | 5,962 |
| APAC | |||||
| OEM | 233 | 219 | 448 | 407 | 847 |
| Aftermarket | 227 | 205 | 471 | 428 | 907 |
| APAC net sales, external | 460 | 424 | 919 | 835 | 1,753 |
| RV | 258 | 239 | 479 | 448 | 921 |
| Marine | 24 | 26 | 57 | 54 | 109 |
| CPV | 44 | 40 | 89 | 78 | 160 |
| Other (Lodging and Retail) | 134 | 119 | 294 | 254 | 563 |
| APAC net sales, external | 460 | 424 | 919 | 835 | 1,753 |
| Net sales, external | |||||
| Americas ⁽¹⁾ | 2,736 | 1,692 | 5,024 | 3,198 | 6,329 |
| EMEA | 2,064 | 1,833 | 3,760 | 3,360 | 5,962 |
| APAC | 460 | 424 | 919 | 835 | 1,753 |
| Total net sales, external | 5,260 | 3,949 | 9,703 | 7,393 | 14,044 |
| Operating profit (EBIT) before i a c | |||||
| Americas ⁽¹⁾ | 475 | 274 | 809 | 438 | 885 |
| EMEA | 335 | 277 | 544 | 439 | 618 |
| APAC | 109 | 99 | 204 | 190 | 357 |
| Total Operating profit before i a c | 919 | 650 | 1,557 | 1,067 | 1,860 |
| Items affecting comparability | |||||
| Americas ⁽¹⁾ | – | – | – | – | -58 |
| EMEA | – | – | – | – | -61 |
| APAC | – | – | – | – | 166 |
| Total i a c | – | – | – | – | 47 |
| Operating profit (EBIT) | |||||
| Americas ⁽¹⁾ | 475 | 274 | 809 | 438 | 827 |
| EMEA | 335 | 277 | 544 | 439 | 557 |
| APAC | 109 | 99 | 204 | 190 | 523 |
| Total operating profit (EBIT) | 919 | 650 | 1,557 | 1,067 | 1,907 |
| Financial income | 1 | 1 | 4 | 1 | 6 |
| Financial expenses | -73 | -33 | -203 | -64 | -212 |
| Taxes | -218 | -144 | -354 | -234 | -206 |
| Profit for the period | 629 | 474 | 1,004 | 770 | 1,495 |
⁽¹⁾Including SeaStar Solutions.
Segment performance is primarily assessed based on sales and operating profit. Information regarding income for each region is based on where customers are located. Management follow-up
is based on the integrated result in each segment. For further information, please refer to Note 5 of the 2017 Annual Report.
| Q2 | Q2 | H1 | H1 | FY | |
|---|---|---|---|---|---|
| SEK m | 2018 | 2017 | 2018 | 2017 | 2017 |
| Relocation China | – | – | – | – | 166 |
| Acquistion-related costs SeaStar Solutions | – | – | – | – | -58 |
| EMEA profitability improvement program | – | – | – | – | -61 |
| Total | – | – | – | – | 47 |
No transactions between Dometic and related parties that have significantly affected the company's position and earnings took place during 2018.
During Q1 2018 the goodwill in the preliminary purchase price allocation has been adjusted with SEK +13 m. In Q2 2018 a repayment of the purchase price consideration held in escrow of SEK 16 m was received and adjusted against goodwill (reducing goodwill with SEK -16 m).
The purchase price allocation of IPV and Oceanair Marine Limited are considered as final. No changes have been made.
On November 22, 2017, Dometic announced the acquisition of SeaStar Solutions, leading provider of vessel control, fuel and system integration systems to the leisure marine industry. SeaStar Solutions is based in North America and employs 1,250 people. The transaction was closed on December 15, 2017 after all approvals from relevant competition authorities was obtained, and Dometic has consolidated the company as of that date. The total cash purchase price amounted to USD 868 m (SEK 7,286 m). The summary of value adjustments recognized as a result of the preliminary purchase price allocation of SeaStar Solutions amounts in total to SEK 7,361 m, including goodwill of SEK 3,361 m, trademarks and tradenames SEK 1,376 m, other intangible assets SEK 3,365 m, tangible assets SEK 347 m, other non-current assets SEK 1 m, cash SEK 1 m, net operating assets and liabilities SEK 686 m and provisions and other noncurrent liabilities of SEK -1,777 m.
Goodwill is justified by new potential customers and new future technologies with SeaStar Solution's leading position in vessel control, fuel systems and system integration and strong relationships with manufacturers. Acquisition-related costs amount to SEK 58 m, reported as items affecting comparability in Q4 2017. Sales and cost synergies of USD 20 m per annum will be fully realized within 3 years. The acquisition has affected consolidated net sales from the date of the acquisition by SEK 108 m and operating profit by SEK 5 m, including step-up costs
for fair value revaluation of inventory of SEK 9 m. If the acquisition had been consolidated as of January 1, 2017, the effect on pro forma net sales would have been USD 320 m and EBITDA of USD 85 m.
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, the purchase price allocation for acquisition is preliminary for up to 12 months after the acquisition date and is subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes available.
On December 22, 2016, Dometic announced the acquisition of the assets of IPV, a Germany-based aftermarket provider of coolers and other outdoor products. The acquisition strengthens Dometic's position in the EMEA market for mobile coolers. The purchase price was EUR 3.5 m, and the transaction was closed on January 3, 2017. On February 7, 2017, Dometic acquired Oceanair Marine Limited, a UK-based market-leading manufacturer of marine blinds, screens and soft furnishings for the Leisure Marine and Super Yacht segments. The acquisition strengthens Dometic's presence in the marine market and broadens the product portfolio. The company reported revenues of GBP 11.4 m for the 2015/2016 fiscal year. The initial purchase price was GBP 14.0 m in cash, with an additional earn-out consideration of a maximum of GBP 2.5 m subject to the achievement of certain performance-related targets over the next 16 months.
The summary of value adjustments recognized as a result of the acquisition of Oceanair amounts in total to SEK 160 m, including goodwill of SEK 80 m, other intangible assets (trademarks and customer relationships) of SEK 100 m, and a deferred tax liability of SEK 20 m. Acquisition-related costs expensed in the consolidated income statement Q1 2017 amounts SEK 2.5 m.
The total purchase price consideration in cash for the transactions (IPV, Oceanair), less cash and cash equivalents, amounts to SEK 197 m, including earn-out paid in the third quarter 2017. The acquisitions did not have any significant impact on operating profit during 2017.
There were no significant events after the quarter.
Dometic presents some financial measures in this interim report, which are not defined by IFRS. The company believes that these measures provide valuable additional information to investors and management for evaluating the company's financial performance, financial position and trends in our operations. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. These non-IFRS measures should not be considered as substitutes for financial reporting measures prepared in accordance with IFRS. See Dometic's website www. dometic.com for the detailed reconciliation.
Consists of inventories and trade receivables less trade payables.
Operating profit (EBIT) before Depreciation and Amortization.
EBITDA divided by net sales.
Net debt excluding pensions and accrued interest in relation to EBITDA.
Total borrowings including pensions and accrued interest less cash and cash equivalents.
EBITDA +/- change in working capital excluding paid tax, after capital expenditure.
Sales growth excluding acquisitions/divestments and currency translation effects. Quarters calculated at comparable currency, applying latest period average rate.
Operating profit (EBIT) divided by operating capital. Based on the operating profit (EBIT) for the four previous quarters, divided by the average operating capital for the previous four quarters, excluding goodwill and trademarks for the previous quarter.
Aftermarket.
Expenses related to the purchase of tangible and intangible assets.
Commercial and Passenger Vehicles.
Net profit for the period divided by average number of shares.
Financial Year ended December 31, 2017.
Items affecting comparability are events or transactions with significant financial effects, which are relevant for understanding the financial performance when comparing profit for the current period with previous periods. Items included are for example restructuring programs, expenses related to major revaluations, gains and losses from acquisitions or disposals of subsidiaries.
Liabilities to credit institutions plus liabilities to related parties plus provisions for pensions.
Profit (loss) for the period
Other comprehensive income.
Original Equipment Manufacturers.
Interest-bearing debt plus equity less cash and cash equivalents, excluding goodwill and trademarks.
Earnings before financial items and taxes.
Operating profit (EBIT) divided by net sales.
Recreational Vehicles.
April to June 2018 for Income Statement.
April to June 2017 for Income Statement.
Core working capital plus other current assets less other current liabilities and provisions relating to operations.
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST), July 18, 2018, during which President and CEO, Juan Vargues and CFO, Per-Arne Blomquist, will present the report and answer questions. To participate in the webcast/telephone conference, please dial in five minutes prior to the start of the conference call:
| Sweden: | +46 8 566 426 69 |
|---|---|
| UK: | +44 20 3008 9802 |
| US: | +1 855 831 5944 |
Webcast URL and presentation are available at www.dometic.com
Hemvärnsgatan 15 SE-171 54 Solna, Sweden Phone: +46 8 501 025 00 www.dometic.com Corporate registration number 556829-4390
Dometic is a global market leader in branded solutions for mobile living in the areas of Climate, Hygiene & Sanitation, Food & Beverage, Power & Control and Safety & Security. Dometic operates in the Americas, EMEA and Asia Pacific, providing products for use in recreational vehicles, trucks and premium cars, pleasure and workboats, and for a variety of other uses. Dometic offers products and solutions that enrich people's experiences away from home, whether in a motorhome, caravan, boat or truck. Our motivation is to create smart and reliable products with outstanding design. We operate 28 manufacturing and assembly sites in eleven countries and sell our products in approximately 100 countries. We have a global distribution and dealer network in place to serve the aftermarket. Dometic employs approximately 8,800 people worldwide, had net sales of SEK 14.0 billion in 2017 and is headquartered in Solna, Sweden.
Johan Lundin Head of Investor Relations and Communications Phone: +46 8 501 025 46 E-mail: [email protected]
This information is information that Dometic Group AB (publ) 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 above, at 08:00 CEST on July 18, 2018.
This document is a translation of the Swedish version of the interim report. In the event of any discrepancy, the Swedish wording shall prevail.
OCTOBER 25, 2018: Interim report for the third quarter 2018. FEBRUARY 8, 2019: Year-end report 2018
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