Earnings Release • Feb 12, 2019
Earnings Release
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| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| SEK million unless otherwise specified | 2018 | 2017 | 2018* | 2017 |
| Net sales | 1,781 | 1,926 | 8,102 | 6,720 |
| 1) Operating profit (EBITDA) |
275 | 286 | 1,189 | 980 |
| 2) Operating profit (EBITA) |
214 | 230 | 949 | 763 |
| EBITA margin, % | 12.0 | 11.9 | 11.7 | 11.4 |
| 3) Operating profit (EBIT) |
213 | 227 | 941 | 749 |
| Profit after financial income and expense | 210 | 225 | 921 | 731 |
| Profit after tax | 158 | 180 | 722 | 572 |
| Basic earnings per share, SEK | 6.01 | 6.84 | 27.44 | 21.74 |
| Diluted earnings per share, SEK | 5.98 | 6.84 | 27.37 | 21.74 |
| 4) Basic adjusted earnings per share, SEK |
6.01 | 6.92 | 27.67 | 22.16 |
| 4) Diluted adjusted earnings per share, SEK |
5.98 | 6.91 | 27.59 | 22.15 |
| Cash fl. after investments, excl. acquisitions and disposals | 122 | 157 | 593 | 496 |
| Net investments affecting cash fl., excl. acq. and dispos. | 116 | 65 | 452 | 277 |
| Cash conversion, %5) | — | — | 60 | 66 |
| Return on capital employed, % | 29.7 | 26.6 | 29.7 | 26.6 |
| Return on shareholders' equity, % | 30.4 | 29.4 | 30.4 | 29.4 |
| Equity/assets ratio, % | 50 | 45 | 50 | 45 |
| Net financial assets (+) / liabilities (–) | 159 | – 153 | 159 | – 153 |
Group highlights
* Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million.
1) Operating profit (EBITDA): Earnings before financial income and expense, taxes and depreciation/amortisation.
2) Operating profit (EBITA): Earnings before financial income and expense, taxes and amortisation of intangible assets arising from acquisitions.
3) Operating profit (EBIT): Earnings before financial income and expense and taxes.
4) Adjusted earnings per share: Profit after tax, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares.
5) Cash conversion: Cash flow after investments, excl. acquisitions and disposals, divided by operating profit (EBIT). Cash flow and operating profit have been adjusted by non-recurring items, if any.
This document is a translation from Swedish. In the event of any difference between this version and the Swedish original, the latter shall prevail.
Consolidated sales totalled SEK 1,781 million (1,926). Adjusted for currency and Group structure, sales decreased by 12%.
Medical Solutions sales rose to SEK 580 million (511); adjusted for currency, sales grew by a strong 8%. Sales increased in both Medical Devices and Pharma Packaging, and most product areas experienced positive growth.
Integrated Solutions sales decreased to SEK 703 million (900); adjusted for currency, sales decreased by 27%. As announced, Vaporiser Heating Products (VHP) were negatively affected by inventory adjustments in Heating Devices. Nolato assesses that volumes will be at a markedly lower level for the first six months of 2019 (compared with the rate in the fourth quarter of 2018) pending the launch of new models. Nolato has received orders for the new models and retains a strong position with the customer. Mobile phone volumes were weak in the quarter, whereas the EMC area demonstrated good growth.
Industrial Solutions sales decreased to SEK 505 million (518); adjusted for currency and Group structure, sales decreased by 4%. Production volumes were at a similar level as the previous year taken over the entire quarter, while invoicing of development work and production equipment was slightly lower.
The Group's operating profit (EBITA) was SEK 214 million (230).
Operating profit (EBITA) increased to SEK 77 million (68) for Medical Solutions, but it decreased to SEK 99 million (116) for Integrated Solutions and it decreased to SEK 39 million (52) for Industrial Solutions.
The EBITA margin for Medical Solutions was 13.3% (13.3). For Integrated Solutions, the EBITA margin was a very strong 14.1% (12.9). The margin was boosted by 2.0 percentage points as a result of the business area receiving compensation from Chinese authorities. The underlying margin was kept at a high level as a result of a consistent rate of production and a high margin in invoicing of development work and production equipment for the quarter. The EBITA margin for Industrial Solutions was 7.7% (10.0). The weak margin was due to continued unsatisfactory efficiency in automotive and low volumes prior to the Christmas break.
Overall, the consolidated EBITA margin was 12.0% (11.9), with a 0.8 percentage point boost from compensation received in China.
Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018
| Sales | Sales | Op. Profit | Op. Profit | EBITA margin | EBITA margin | |
|---|---|---|---|---|---|---|
| SEK million | Q4/2018 | Q4/2017 | EBITA Q4/2018 | EBITA Q4/2017 | Q4/2018 | Q4/2017 |
| Medical Solutions | 580 | 511 | 77 | 68 | 13.3% | 13.3% |
| Integrated Solutions | 703 | 900 | 99 | 116 | 14.1% | 12.9% |
| Industrial Solutions | 505 | 518 | 39 | 52 | 7.7% | 10.0% |
| Intra-Group adj., Parent Co | – 7 | – 3 | – 1 | – 6 | — | — |
| Group total | 1,781 | 1,926 | 214 | 230 | 12.0% | 11.9% |
Operating profit (EBITA): Earnings before financial income and expense, taxes and amortisation of intangible assets arising from acquisitions.
Operating profit (EBIT) was SEK 213 million (227).
Profit after net financial income/expense was SEK 210 million (225).
Profit after tax was SEK 158 million (180). Basic earnings per share were
SEK 6.01 (6.84). Adjusted basic earnings per share excluding amortisation of
intangible assets arising from acquisitions were SEK 6.01 (6.92).
Consolidated sales rose by 21% to SEK 8,102 million (6,720) in 2018, which was the highest level of sales ever in Nolato's history. Adjusted for currency and Group structure, sales rose by an exceptionally strong 17%. Volumes showed very positive performance, particularly in the first half of the year.
Sales for Medical Solutions rose by 16% to SEK 2,270 million (1,955), for Integrated Solutions by 32% to SEK 3,720 million (2,810) and for Industrial Solutions by 8% to SEK 2,119 million (1,968).
The Group's operating profit (EBITA) increased sharply to SEK 949 million (763). Excluding non-recurring items, profit amounted to SEK 946 million (763). In the first quarter, a distribution from the previous bankruptcy of a customer in 2006 was recognised, boosting earnings by SEK 20 million (0) and being recognised under other operating income. In the third quarter, a capital loss was recognised on the sale of a subsidiary, reducing earnings by SEK –17 million (0) and recognised under other operating expenses. These non-recurring items were recognised at Group level and have consequently not affected the profit of the business areas. The EBITA margin was a strong 11.7% (11.4). Operating profit (EBIT) was SEK 941 million (749).
Profit after net financial income/expense rose to SEK 921 million (731). Profit after tax rose to SEK 722 million (572). Basic earnings per share increased to SEK 27.44 (21.74). Excluding non-recurring items, basic earnings per share amounted to SEK 27.18 (21.74). Adjusted basic earnings per share excluding amortisation of intangible assets arising from acquisitions were SEK 27.67 (22.16). The effective tax rate was 21.6% (21.8). Excluding non-recurring items and adjustment to a lower tax rate in Sweden, the tax rate was 22.1% (21.8).
The return on capital employed was 29.7% (26.6). Return on equity was 30.4% (29.4). Cash conversion was 60% (66). Cash conversion was negatively affected by continued high investments principally due to continued expansion efforts.
| Sales and profit full year (SEK million) | 2018 | 2017 |
|---|---|---|
| Sales | 2,270 | 1,955 |
| Operating profit (EBITA) | 295 | 257 |
| EBITA margin (%) | 13.0 | 13.1 |
| Operating profit (EBIT) | 291 | 247 |
Medical Solutions sales rose to SEK 2,270 million (1,955); adjusted for currency, sales grew by a strong 12%. Volumes increased in both the Medical Devices and Pharma Packaging sectors, but especially in Medical Devices in which the ramp-up of new customer projects made a positive contribution. Activity remains high in Nolato's market, with project activity primarily in autoinjectors for biological medication, insulin products and incontinence products.
Operating profit (EBITA) rose to SEK 295 million (257) and the EBITA margin was 13.0% (13.1).
Strong growth has meant that, as per previously communicated decisions, Nolato expanded production capacity in Hungary, Sweden and Switzerland. The expansion work has been completed according to plan. The business area is also expanding production capacity in the US, which is expected to be complete in spring 2019.
| Sales and profit full year (SEK million) | 2018 | 2017 |
|---|---|---|
| Sales | 3,720 | 2,810 |
| Operating profit (EBITA) | 473 | 332 |
| EBITA margin (%) | 12.7 | 11.8 |
| Operating profit (EBIT) | 473 | 332 |
Integrated Solutions sales rose by 32% to SEK 3,720 million (2,810); adjusted for currency, sales increased by an exceptionally strong 28%. Very high volumes were delivered by the Vaporiser Heating Products (VHP) product area. Heating Devices in particular enjoyed high launch volumes and inventory build-up over the first nine months of the year. Announced inventory adjustments of Heating Device products had a negative impact in the fourth quarter. Nolato assesses that volumes will be at a markedly lower level for the first six months of the year (compared with the rate in the fourth quarter of 2018) pending the launch of new models. Nolato has received orders for the new models and retains a strong position with the customer. Mobile phone volumes remained relatively weak, while the EMC area showed growth.
Operating profit (EBITA) rose sharply to SEK 473 million (332). The EBITA margin was a strong 12.7% (11.8).
The business area started to launch production in Suzhou in the second half of the year in order to transfer parts of production from Beijing. The new establishment will broaden our geographical presence, and help the company gain greater flexibility and diversification. The business area's unit in Shenzhen, southern China, where we have had a sales/technology office, has also been expanded with production capacity for consumer electronics.
2017 2018 2018 2018 2018 Q4 Q1 Q2 Q3 Q4
| Sales and profit full year (SEK million) | 2018 | 2017 |
|---|---|---|
| Sales | 2,119 | 1,968 |
| Operating profit (EBITA) | 186 | 195 |
| EBITA margin (%) | 8.8 | 9.9 |
| Operating profit (EBIT) | 182 | 191 |
Industrial Solutions sales amounted to SEK 2,119 million (1,968); adjusted for currency and Group structure, growth was a healthy 6%. There was positive development of volumes in almost all product areas, particularly automotive and hygiene. Advanced market positions contributed to the strong growth. The rate of growth decreased in the second half of the year, but volumes were stable in most product areas.
Operating profit (EBITA) totalled SEK 186 million (195), with an EBITA margin of 8.8% (9.9). The lower margin was affected by uneven capacity utilisation and unsatisfactory efficiency in the second half of the year within automotive. Efficiency measures have been taken to increase profitability.
The business area will begin production in the US in the first half of 2019. Production will take place in cooperation with our Medical Solutions unit in Wisconsin.
Cash flow after investments in the fourth quarter amounted to SEK 122 million (157). The change in working capital for the quarter was neutral.
Net investments affecting cash flow rose to SEK 116 million (65). Ongoing expansion of production facilities and investments in capacity in response to strong growth are resulting in increased investment.
For the full year 2018 cash flow after investments grew to SEK 647 million (496) as a result of increased profit and lower working capital needs. Higher investment had a negative impact on cash flow. Excluding the divestment, cash flow was SEK 593 million (496). On an accumulated basis, net investment affecting cash flow totalled SEK 452 million (277), excluding the divestment.
A dividend totalling SEK 329 million (276) was paid to shareholders in the second quarter. Cash conversion for 2018 was 60% (66) and was negatively affected by the high level of investment.
Excluding acquisitions and disposals
Nolato's financial position remains good and debt decreased during the year as a result of the strong performance and positive cash flow. Interest-bearing assets increased to SEK 953 million (669), while interest-bearing liabilities and provisions declined to SEK 794 million (822). Net financial assets consequently totalled SEK 159 million (net financial liability of SEK –153 million). The strong cash flow of the last 12 months has eliminated the previous net debt. Shareholders' equity rose to SEK 2,592 million (2,159). The equity/assets ratio was 50% (45).
Nolato has long-term credit agreements totalling approximately SEK 1.1 billion. Short-term financial credit facilities of just over SEK 100 million are also available.
| Q4 | Q4 | Full year | Full year | ||
|---|---|---|---|---|---|
| SEK million | Note | 2018 | 2017 | 2018 | 2017 |
| Net sales | 1 | 1,781 | 1,926 | 8,102 | 6,720 |
| Gross profit excl. depreciation/amortisation | 347 | 366 | 1,493 | 1,291 | |
| As a percentage of net sales | 19.5 | 19.0 | 18.4 | 19.2 | |
| Costs | – 72 | – 80 | – 304 | – 311 | |
| As a percentage of net sales | 4.0 | 4.2 | 3.8 | 4.6 | |
| Operating profit (EBITDA) | 275 | 286 | 1,189 | 980 | |
| As a percentage of net sales | 15.4 | 14.8 | 14.7 | 14.6 | |
| Depreciation and amortisation | – 61 | – 56 | – 240 | – 217 | |
| Operating profit (EBITA) | 214 | 230 | 949 | 763 | |
| As a percentage of net sales | 12.0 | 11.9 | 11.7 | 11.4 | |
| Amortisation of intangible assets arising from acquisitions | – 1 | – 3 | – 8 | – 14 | |
| Operating profit (EBIT) | 2 | 213 | 227 | 941 | 749 |
| Financial income and expense | 2 | – 3 | – 2 | – 20 | – 18 |
| Profit after financial income and expense | 2 | 210 | 225 | 921 | 731 |
| Tax | – 52 | – 45 | – 199 | – 159 | |
| As a percentage of profit after financial income and expense | 24.8 | 20.0 | 21.6 | 21.8 | |
| Profit after tax | 158 | 180 | 722 | 572 | |
| SEK million | 31/12/2018 | 31/12/2017 |
|---|---|---|
| Interest-bearing liabilities, credit institutions | – 612 | – 638 |
| Interest-bearing pension liabilities | – 182 | – 184 |
| Total borrowings | – 794 | – 822 |
| Cash and bank | 953 | 669 |
| Net financial assets (+) / liabilities (–) | 159 | – 153 |
| Working capital | 228 | 390 |
| As a percentage of sales (avg.) (%) | 3.8 | 5.3 |
| Capital employed | 3,387 | 2,980 |
| Return on capital employed (avg.) (%) | 29.7 | 26.6 |
| Shareholders' equity | 2,592 | 2,159 |
| Return on shareholders' equity (avg.) (%) | 30.4 | 29.4 |
The average number of employees during the year was 6,449 people (7,249). The decrease in the number of employees in the year is primarily attributable to Integrated Solutions's operations in China.
The business risks and risk management of the Group and the Parent Company, along with the management of financial risks, are described in the 2017 Annual Report on pages 52 – 53, and in Note 28 on pages 75 – 77.
No significant events have occurred during the period that would significantly affect or change these descriptions of the Group's and the Parent Company's risks or the management thereof.
Nolato does not experience any significant seasonal variations. However, in the third quarter sales within Industrial Solutions, and to a certain degree Medical Solutions, can be negatively affected by the fact that the holiday period falls in this quarter both for Nolato and its customers.
No significant events have occurred since the end of the period.
At the Annual General Meeting, the Board of Directors and the President and CEO will propose that the dividend be increased to SEK 14.00 per share (SEK 12.50), which corresponds to SEK 368 million (329). The pay-out ratio is 51% (57). The dividend yield was 3.8% in relation to the listed share price at 31 December 2018. Nolato's dividend policy is to propose a dividend that exceeds 50% of profit after tax, taking account of Nolato's long-term development opportunities, financial position and investment needs.
Nolato AB (publ), with Swedish corporate identity number 556080-4592, is the Parent Company of the Nolato Group.
Nolato's Class B shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.
There were 12,052 shareholders at 31 December. The largest shareholders are the Jorlén family with 10%, the Boström family with 9%, the Hamrin family with 8%, Capital Group with 5%, Lannebo Funds with 5% and Didner & Gerge Funds with 3%, of the capital.
For the parent company, which has no operating activities, sales amounted to SEK 63 million (50). Profit after financial income and expense increased to SEK 414 million (275), owing mainly to higher earnings from investments in group companies. Contingent liabilities amounted to 145 MSEK (116).
In connection with the yearend report, Nolato will hold a webcast conference call in English at 3.30 p.m. CET. Nolato will be represented by President and CEO Christer Wahlquist and CFO Per-Ola Holmström, who will present the year-end report and answer questions. Information regarding telephone numbers and website is available at https://financialhearings.com/ event/11871. The presentation will be available at www.nolato.com/ir after publication of the year-end report. The webcast will be available at the same address after the live broadcast.
This information is information that Nolato AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2:30 p.m. CET on 12 February 2019.
This report has not been audited by the Company's auditors.
Nolato's consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU.
The consolidated year-end report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the applicable provisions of the Swedish Annual Accounts Act. The Swedish Securities Market Act has been applied in relation to publication of this interim report.
The consolidated accounts have been prepared in accordance with the same principles as those applied in the most recent Annual Report, which are described in the 2017 Annual Report.
The new or revised IFRS standards or IFRIC interpretations, which came into effect on 1 January 2018, have not had any material effect on the consolidated income statement or balance sheet.
The interim report for the Parent Company was prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act.
The greatest impact of IFRS 16 will be on the consolidated balance sheet, with gross recognition of right-of-use assets and lease liabilities. Under the new standard, the lease expense will be replaced by amortisation and interest expense, which will affect consolidated operating profit and net financial income/expense. Total cash flow in the cash flow statement will be unchanged, but there will be a reclassification between cash flow from operating activities and cash flow from financing activities.
In transitioning to IFRS 16 on 1 January 2019 the Group has used a modified retrospective method, meaning that the 2018 financial year is not recalculated. The lease liability is the sum of the net present value of all future lease payments. The simplification rule, that a right-of-use asset (prior to adjustments for any advance payments) should correspond to the lease liability, was applied at transition. All components, with the exception of property tax in Sweden, have been deemed to be a lease component. Exemptions to not recognise short-term leases and low-value assets have also been applied.
The discount rate is based on high-quality mortgage bond yields in Sweden, with reference to the term of leases, which for foreign companies are then adjusted for differences between 10-year government bond yields of Sweden and foreign countries.
The largest asset class for leases is property, such as production plants and offices.
The following figures and key performance indicators are Nolato's preliminary estimates of the impact of the introduction of IFRS 16 on the full year 2019 and on the balance sheet at the start of 2019.
| Consolidated income statement (summary) | Full year |
|---|---|
| SEK million | 2019 |
| Cost of goods sold (decrease of cost) | −75 to −85 |
| EBITDA (increase of performance measure) | +75 to +85 |
| Depreciation in cost of goods sold (increase of cost) | +70 to +80 |
| EBITA/EBIT (increase of performance measure) | 0 to +10 |
| Interest expenses (increase of cost) | +8 to +12 |
| Profit after financial income and expense (decrease of | 0 to −10 |
| performance measure) | |
| Tax (decrease of cost) | 0 to −5 |
| Profit after tax (decrease of performance measure) | 0 to −5 |
| Effect on basic earnings per share (SEK) | 0.00 to −0.20 |
| SEK million | 01/01/2019 |
|---|---|
| Property plant & equipment (increase of balance sheet item) | +350 to +370 |
| Long-term lease liability (increase of balance sheet item) | +285 to +295 |
| Short-term lease liability (increase of balance sheet item) | +65 to +75 |
| Consolidated cash flow statement (summary) | Full year |
|---|---|
| SEK million | 2019 |
| EBIT (increase of performance measure) | 0 to +10 |
| Adjustment for depreciation (increase of cash flow item) | +70 to +80 |
| Interest paid (increase of cash flow item) | +8 to +12 |
| Cash flow from operating activities before changes in | |
| working capital (increase of cash flow item) | +65 to +75 |
| Cash flow from financing activities (decrease of cash flow item) | −65 to −75 |
| Cash flow for the year | — |
Nolato makes the following estimates regarding certain selected key performance indicators that will be affected by the introduction of IFRS 16. These are preliminary estimates based on the above estimated impact in 2019 on income statements and balance sheets, but in relation to key performance indicator outcomes for the 2018 financial year. The impact (change) has been assessed as follows: Equity/assets ratio: −2 to −4 percentage points, return on capital employed: −2 to −4 percentage points, return on equity: 0 to −1 percentage point.
The Annual General Meeting will be held at 4 p.m. on 8 May 2019 in Grevie, Sweden. Shareholders who would like to submit proposals to the nomination committee can contact the Chairman of the nomination committee, Henrik Jorlén by email at [email protected] or by post at Kommendörsgatan 4, 269 77 Torekov, Sweden.
Torekov, 12 February 2019 Nolato AB (publ) The Board of Directors
Nolato develops and manufactures products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive and other selected industrial sectors.
Operations encompass everything from individual components, which the customer assembles in its own product, to complete products that are ready for delivery to a customer's client.
Nolato also develops and manufactures its own products, such as pharmaceutical packaging.
Nolato's business model is based on close, long-term, innovative collaboration with our customers. By being part of their process at an early stage and providing support during both the development and production phases, Nolato helps its customers create a product that is as competitive as possible.
Nolato creates added value for its customers and owners through progressive, leading technology, extensive expertise in development and design, advanced project management and highly efficient production.
| Q4 | Q4 | Full year | Full year | ||
|---|---|---|---|---|---|
| SEK million | Note | 2018 | 2017 | 2018 | 2017 |
| Net sales | 1 | 1,781 | 1,926 | 8,102 | 6,720 |
| Cost of goods sold | – 1,494 | – 1,616 | – 6,845 | – 5,642 | |
| Gross profit | 287 | 310 | 1,257 | 1,078 | |
| Other operating income | 10 | 4 | 37 | 12 | |
| Selling expenses | – 29 | – 29 | – 119 | – 116 | |
| Administrative expenses | – 55 | – 53 | – 217 | – 205 | |
| Other operating expenses | — | – 5 | – 17 | – 20 | |
| – 74 | – 83 | – 316 | – 329 | ||
| Operating profit | 2 | 213 | 227 | 941 | 749 |
| Financial income and expense | 2 | – 3 | – 2 | – 20 | – 18 |
| Profit after financial income and expense | 2 | 210 | 225 | 921 | 731 |
| Tax | – 52 | – 45 | – 199 | – 159 | |
| Profit after tax | 158 | 180 | 722 | 572 | |
| All earnings are attrib. to the Parent Co.'s shareholders | |||||
| Depreciation/amortisation | 62 | 59 | 248 | 231 | |
| Basic earnings per share, SEK* | 3 | 6.01 | 6.84 | 27.44 | 21.74 |
| Diluted earnings per share, SEK* | 3 | 5.98 | 6.84 | 27.37 | 21.74 |
| Number of shares at the end of the period, before dilution* | 26,307,408 | 26,307,408 | 26,307,408 | 26,307,408 | |
| Number of shares at the end of the period, after dilution* | 26,427,262 | 26,342,651 | 26,427,262 | 26,342,651 | |
| Average number of shares, before dilution* | 26,307,408 | 26,307,408 | 26,307,408 | 26,307,408 | |
| Average number of shares, after dilution* | 26,410,507 | 26,328,203 | 26,384,021 | 26,315,844 |
* At the end of the period the Group had three share warrant programmes, Series 1, Series 2 and Series 3. Series 1 has redemptions from 01/05/2019 to 15/12/2019, Series 2 from 01/05/2020 to 15/12/2020 and Series 3 from 01/05/2021 to 15/12/2021. The subscription price is SEK 296.30 for Series 1, SEK 485.10 for Series 2 and SEK 502.00 for Series 3. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 630,200 new class B shares.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| SEK million | 2018 | 2017 | 2018 | 2017 |
| Profit after tax | 158 | 180 | 722 | 572 |
| Other comprehensive income | ||||
| Items that cannot be transferred to profit for the period | ||||
| Revaluations of defined benefit pension plans | 3 | – 1 | 3 | 16 |
| Tax attributable to items that cannot be transferred to | ||||
| profit for the period | – 1 | 1 | – 1 | – 2 |
| 2 | — | 2 | 14 | |
| Items that have been converted or can be converted into | ||||
| profit for the period | ||||
| Translation differences for the period on transl. of foreign oper. | 6 | 27 | 36 | – 6 |
| Changes in the fair val. of cash flow hedges for the period * | 2 | – 1 | – 1 | 3 |
| Tax attr. to changes in the fair value of cash flow hedges * | – 1 | — | — | – 1 |
| 7 | 26 | 35 | – 4 | |
| Other comprehensive income, net of tax | 9 | 26 | 37 | 10 |
| Total comp. income for the period attributable to the | 167 | 206 | 759 | 582 |
| Parent Co.'s shareholders |
* Financial instruments are measured at fair value in the statement of financial position, pursuant to measurement hierarchy Level 2.
| SEK million | 31/12/2018 | 31/12/2017 |
|---|---|---|
| Assets | ||
| Non-current assets | ||
| Intangible non-current assets | 780 | 813 |
| Property, plant and equipment | 1,518 | 1,243 |
| Non-current financial assets | 2 | 2 |
| Other non-current receivables | 1 | 1 |
| Deferred tax assets | 111 | 52 |
| Total fixed assets | 2,412 | 2,111 |
| Current assets | ||
| Inventories | 566 | 530 |
| Accounts receivable | 949 | 1,128 |
| Other current assets* 2) | 276 | 314 |
| Cash and bank | 953 | 669 |
| Total current assets | 2,744 | 2,641 |
| Total assets | 5,156 | 4,752 |
| Shareholders' equity and liabilities | ||
| Shareholders' equity | 2,592 | 2,159 |
| 1) Long-term liabilities and provisions |
795 | 757 |
| Deferred tax liabilities1) | 116 | 103 |
| Current liabilities and provisions* 1) 3) | 1,653 | 1,733 |
| Total liabilities and provisions | 2,564 | 2,593 |
| Total shareholders' equity and liabilities | 5,156 | 4,752 |
| 1) Interest-bearing/non-interest-bearing liabilities and provisions: | ||
| 794 | 822 | |
| Interest-bearing liabilities and provisions | 1,770 | 1,771 |
| Non-interest-bearing liabilities and provisions Total liabilities and provisions |
2,564 | 2,593 |
| * Financial instruments are measured at fair value in the statement of financial position, pursuant to measurement hierarchy Level 2. |
||
| 2) Derivative assets are included in other current assets at | 5 | 8 |
| 3) Derivative liabilities are included in current liabilities and provisions at | 4 | — |
3) Derivative liabilities are included in current liabilities and provisions at
| Full year | Full year | |
|---|---|---|
| SEK million | 2018 | 2017 |
| Shareholders' equity at the beginning of the period | 2,159 | 1,850 |
| Total comprehensive income for the period | 759 | 582 |
| Dividends | – 329 | – 276 |
| Share warrants included in incentive programmes | 3 | 3 |
| Shareholders' equity at the end of period attrib. to Parent Co's shareholders | 2,592 | 2,159 |
In 2018, a dividend totalling SEK 329 million was paid to the Parent Company's shareholders, corresponding to a dividend of SEK 12.50 per share. At the end of the period the Group had three share warrant programmes, Series 1, Series 2 and Series 3. Series 1 has redemptions from 01/05/2019 to 15/12/2019, Series 2 from 01/05/2020 to 15/12/2020 and Series 3 from 01/05/2021 to 15/12/2021. The subscription price is SEK 296.30 for Series 1, SEK 485.10 for Series 2 and SEK 502.00 for Series 3. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 630,200 new class B shares.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| SEK million | 2018 | 2017 | 2018 | 2017 |
| Cash flow from op. activities bef. changes in working capital | 238 | 310 | 960 | 899 |
| Changes in working capital | — | – 88 | 85 | – 126 |
| Cash flow from operating activities | 238 | 222 | 1,045 | 773 |
| Cash flow from investment activities | – 116 | – 65 | – 398 | – 277 |
| Cash flow before financing activities | 122 | 157 | 647 | 496 |
| Cash flow from financing activities | 2 | – 68 | – 393 | – 222 |
| Cash flow for the period | 124 | 89 | 254 | 274 |
| Cash and cash equivalents at the beginning of the period | 818 | 561 | 669 | 411 |
| Exchange rate difference in liquid assets | 11 | 19 | 30 | – 16 |
| Cash and cash equivalents at the end of the period | 953 | 669 | 953 | 669 |
| Full year - 2017 | |||||||
|---|---|---|---|---|---|---|---|
| Medical | Integr. | Indust. | Medical | Integr. | Indust. | ||
| Sum | Sum | Sol. | |||||
| 1,189 | 140 | 51 | 998 | 1,235 | 167 | 122 | 946 |
| 2,889 | 1,492 | 473 | 924 | 2,297 | 1,288 | 164 | 845 |
| 716 | 544 | 41 | 131 | 613 | 429 | 66 | 118 |
| 3,315 | 94 | 3,155 | 66 | 2,588 | 71 | 2,458 | 59 |
| – 7 | – 13 | ||||||
| 8,102 | 2,270 | 3,720 | 2,119 | 6,720 | 1,955 | 2,810 | 1,968 |
| Sol. | Full year - 2018 Sol. |
Sol. | Sol. | Sol. |
The above table essentially covers products transferred at a specific date.
For the full year 2018, the Group recognised increased provision of previously impaired trade receivables and contract assets of SEK 10 million (4). Impairment losses are recognised in the cost of goods sold.
| Full year | Full year |
|---|---|
| 2018 | 2017 |
| 291 | 247 |
| 473 | 332 |
| 182 | 191 |
| – 5 | – 21 |
| 941 | 749 |
| – 20 | – 18 |
| 921 | 731 |
* Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million.
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| SEK million | 2018 | 2017 | 2018 | 2017 |
| Profit after tax | 158 | 180 | 722 | 572 |
| Average number of shares, before dilution | 26,307,408 | 26,307,408 | 26,307,408 | 26,307,408 |
| Basic earnings per share (SEK) | 6.01 | 6.84 | 27.44 | 21.74 |
| Non-recurring items | — | — | – 7 | — |
| Profit after tax excl. non-recurring items | 158 | 180 | 715 | 572 |
| Basic earnings per share excl. non-recurring items (SEK) | 6.01 | 6.84 | 27.18 | 21.74 |
| Dilutive shares from Series 1 incentive programme with | ||||
| exercise price SEK 296.30 per share; total 240,500 warrants | 103,099 | 20,795 | 76,613 | 8,436 |
| Dilutive shares from Series 2 incentive programme with | ||||
| exercise price SEK 485.10 per share; total 196,200 warrants | — | — | — | — |
| Dilutive shares from Series 3 incentive programme with | ||||
| exercise price SEK 502.00 per share; total 193,500 warrants | — | — | — | — |
| Average number of shares, after dilution | 26,410,507 | 26,328,203 | 26,384,021 | 26,315,844 |
| Diluted earnings per share (SEK) | 5.98 | 6.84 | 27.37 | 21.74 |
| Diluted earnings per share excl. non-recurring items (SEK) | 5.98 | 6.84 | 27.10 | 21.74 |
| Number of shares at the end of the period, before dilution | 26,307,408 | 26,307,408 | 26,307,408 | 26,307,408 |
| Number of shares at the end of the period, after dilution | 26,427,262 | 26,342,651 | 26,427,262 | 26,342,651 |
* At the end of the period the Group had three share warrant programmes, Series 1, Series 2 and Series 3. Series 1 has redemptions from 01/05/2019 to 15/12/2019, Series 2 from 01/05/2020 to 15/12/2020 and Series 3 from 01/05/2021 to 15/12/2021. The subscription price is SEK 296.30 for Series 1, SEK 485.10 for Series 2 and SEK 502.00 for Series 3. The programmes have been taken into account in calculating the number of shares after dilution. Upon full subscription, the programmes provide a maximum of 630,200 new class B shares.
| Full year | |||
|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 |
| 158 | 180 | 722 | 572 |
| 1 | 3 | 8 | 14 |
| – 1 | – 1 | – 2 | – 3 |
| 158 | 182 | 728 | 583 |
| 26,307,408 | 26,307,408 | 26,307,408 | 26,307,408 |
| 6.01 | 6.92 | 27.67 | 22.16 |
| — | — | – 7 | — |
| 158 | 182 | 721 | 583 |
| 6.01 | 6.92 | 27.41 | 22.16 |
| 26,410,507 | 26,328,203 | 26,384,021 | 26,315,844 |
| 5.98 | 6.91 | 27.59 | 22.15 |
| 5.98 | 6.91 | 27.33 | 22.15 |
| Q4 | Q4 | Full year |
| IFRS measures | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|
| Operating profit (EBIT) (SEK million) | 941 | 749 | 443 | 556 | 454 |
| Basic earnings per share, (SEK) * | 27.44 | 21.74 | 12.77 | 15.97 | 13.84 |
| Diluted earnings per share, (SEK) * | 27.37 | 21.74 | 12.77 | 15.97 | 13.84 |
| Alternative performance measures | |||||
| Net sales (SEK million) | 8,102 | 6,720 | 4,447 | 4,726 | 4,234 |
| Operating profit (EBITA) (SEK million) | 949 | 763 | 457 | 570 | 470 |
| EBITA margin (%) | 11.7 | 11.4 | 10.3 | 12.1 | 11.1 |
| Profit after financial income and expense (SEK million) | 921 | 731 | 438 | 555 | 462 |
| Profit after tax (SEK million) | 722 | 572 | 336 | 420 | 364 |
| Cash flow after investments, excl. acq. and disposals (SEK million) | 593 | 496 | 245 | 288 | 127 |
| Cash conversion (%) | 60 | 66 | 55 | 52 | 28 |
| Return on capital employed (%) | 29.7 | 26.6 | 20.6 | 29.6 | 28.4 |
| Return on shareholders' equity (%) | 30.4 | 29.4 | 19.0 | 25.3 | 25.0 |
| Net financial assets (+) liabilities (–) (SEK million) | 159 | – 153 | – 408 | 122 | 59 |
| Equity/assets ratio (%) | 50 | 45 | 47 | 54 | 54 |
| Adjusted basic earnings per share (SEK) | 27.67 | 22.16 | 13.19 | 16.35 | 14.29 |
| Adjusted diluted earnings per share (SEK) | 27.59 | 22.15 | 13.19 | 16.35 | 14.29 |
| Dividend per share (2018 proposal) (SEK) | 14.00 | 12.50 | 10.50 | 10.00 | 8.50 |
| Average number of employees | 6,449 | 7,249 | 6,418 | 7,759 | 8,020 |
Including any non-recurring items.
| IFRS measures | Note | Q1* | Q2 | Q3* | Q4 | Full year | |
|---|---|---|---|---|---|---|---|
| Operating profit (EBIT) (SEK million) | 2 | 2018 | 261 | 264 | 203 | 213 | 941 |
| 2 | 2017 | 142 | 174 | 206 | 227 | 749 | |
| 2016 | 110 | 106 | 101 | 126 | 443 | ||
| Basic earnings per share (SEK) | 3 | 2018 | 7.83 | 7.75 | 5.85 | 6.01 | 27.44 |
| 3 | 2017 | 4.11 | 4.98 | 5.82 | 6.84 | 21.74 | |
| 2016 | 3.16 | 3.00 | 3.00 | 3.61 | 12.77 | ||
| Diluted earnings per share (SEK) | 3 | 2018 | 7.80 | 7.70 | 5.81 | 5.98 | 27.30 |
| 3 | 2017 | 4.11 | 4.98 | 5.82 | 6.84 | 21.74 | |
| 2016 | 3.16 | 3.00 | 3.00 | 3.61 | 12.77 | ||
| Alternative performance measures | |||||||
| Net sales (SEK million) | 1 | 2018 | 2,039 | 2,302 | 1,980 | 1,781 | 8,102 |
| 1 | 2017 | 1,370 | 1,675 | 1,749 | 1,926 | 6,720 | |
| 2016 | 1,022 | 1,037 | 1,036 | 1,352 | 4,447 | ||
| Operating profit (EBITDA) (SEK million) | 2018 | 322 | 325 | 267 | 275 | 1,189 | |
| 2017 | 199 | 232 | 263 | 286 | 980 | ||
| 2016 | 155 | 152 | 149 | 180 | 636 | ||
| Operating profit (EBITA) (SEK million) | 2018 | 264 | 266 | 205 | 214 | 949 | |
| 2017 | 146 | 178 | 209 | 230 | 763 | ||
| 2016 | 113 | 110 | 104 | 130 | 457 | ||
| EBITA margin (%) | 2018 | 12.9 | 11.6 | 10.4 | 12.0 | 11.7 | |
| 2017 2016 |
10.7 11.1 |
10.6 10.6 |
11.9 10.0 |
11.9 9.6 |
11.4 10.3 |
||
| Profit after financial income and expense (SEK million) | 2 | 2018 | 256 | 257 | 198 | 210 | 921 |
| 2 | 2017 | 138 | 170 | 198 | 225 | 731 | |
| 2016 | 109 | 103 | 101 | 125 | 438 | ||
| Profit after tax (SEK million) | 2018 | 206 | 204 | 154 | 158 | 722 | |
| 2017 | 108 | 131 | 153 | 180 | 572 | ||
| 2016 | 83 | 79 | 79 | 95 | 336 | ||
| Cash flow from operating activities (SEK million) | 2018 | 296 | 472 | 39 | 238 | 1,045 | |
| 2017 | 67 | 103 | 381 | 222 | 773 | ||
| 2016 | 93 | 113 | 70 | 190 | 466 | ||
| Cash flow from operations per share before dilution (SEK) | 2018 | 11.25 | 17.94 | 1.48 | 9.05 | 39.72 | |
| 2017 | 2.55 | 3.92 | 14.48 | 8.44 | 29.38 | ||
| 2016 | 3.54 | 4.30 | 2.66 | 7.22 | 17.71 | ||
| Cash flow after investments, excl. acq. and disp. (SEK million) | 2018 | 187 | 352 | – 68 | 122 | 593 | |
| 2017 | 3 | 28 | 308 | 157 | 496 | ||
| 2016 | 30 | 61 | 19 | 135 | 245 | ||
| Cash fl. aft. inv., excl. acq. and disp. per sh. bef. dilut. (SEK) | 2018 | 7.11 | 13.38 | – 2.58 | 4.64 | 22.54 | |
| 2017 | 0.11 | 1.06 | 11.71 | 5.97 | 18.85 | ||
| 2016 | 1.14 | 2.32 | 0.72 | 5.13 | 9.31 | ||
| Adjusted basic earnings per share (SEK) | 3 | 2018 | 7.91 | 7.83 | 5.93 | 6.01 | 27.67 |
| 3 | 2017 | 4.22 | 5.09 | 5.93 | 6.92 | 22.16 | |
| 2016 | 3.23 | 3.12 | 3.12 | 3.72 | 13.19 | ||
| Shareholders' equity per share, before dilution (SEK) | 2018 2017 |
92 74 |
87 69 |
92 74 |
99 82 |
99 82 |
|
| 2016 | 70 | 63 | 66 | 70 | 70 | ||
| Return on total capital (%) | 2018 | 18.8 | 19.6 | 19.1 | 18.4 | 18.4 | |
| 2017 | 14.0 | 14.8 | 16.1 | 17.1 | 17.1 | ||
| 2016 | 17.8 | 16.0 | 14.7 | 13.7 | 13.7 | ||
| Return on capital employed (%) | 2018 | 29.8 | 32.0 | 31.2 | 29.7 | 29.7 | |
| 2017 | 20.8 | 22.3 | 24.7 | 26.6 | 26.6 | ||
| 2016 | 27.2 | 24.8 | 22.4 | 20.6 | 20.6 | ||
| Return on operating capital (%) | 2018 | 36.8 | 41.1 | 41.1 | 40.0 | 40.0 | |
| 2017 | 24.3 | 25.7 | 29.1 | 32.1 | 32.1 | ||
| 2016 | 34.2 | 28.9 | 26.1 | 24.4 | 24.4 | ||
| Return on shareholders' equity (%) | 2018 | 32.6 | 34.9 | 33.1 | 30.4 | 30.4 | |
| 2017 | 20.0 | 22.9 | 26.2 | 29.4 | 29.4 | ||
| 2016 | 23.2 | 22.5 | 19.7 | 19.0 | 19.0 | ||
| Closing share price Nolato B (Nasdaq Stockholm) | 2018 | 609.00 | 723.00 | 548.00 | 366.50 | 366.50 | |
| 2017 | 267.00 | 316.50 | 393.00 | 539.00 | 539.00 | ||
| 2016 | 227.50 | 221.50 | 263.00 | 263.00 | 263.00 |
* Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million.
| Net sales (SEK million) | Note | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|---|
| Medical Solutions | 1 | 2018 | 532 | 562 | 596 | 580 | 2,270 |
| 1 | 2017 | 487 | 498 | 459 | 511 | 1,955 | |
| 2016 | 390 | 397 | 395 | 463 | 1,645 | ||
| Integrated Solutions | 1 | 2018 | 939 | 1,186 | 892 | 703 | 3,720 |
| 1 | 2017 | 399 | 692 | 819 | 900 | 2,810 | |
| 2016 | 300 | 311 | 343 | 448 | 1,402 | ||
| Industrial Solutions | 1 | 2018 | 568 | 554 | 492 | 505 | 2,119 |
| 1 | 2017 | 488 | 489 | 473 | 518 | 1,968 | |
| 2016 | 334 | 331 | 301 | 443 | 1,409 | ||
| Group adjustments, Parent Company | 1 | 2018 | — | — | — | – 7 | – 7 |
| 1 | 2017 | – 4 | – 4 | – 2 | – 3 | – 13 | |
| 2016 | – 2 | – 2 | – 3 | – 2 | – 9 | ||
| Group total | 1 | 2018 | 2,039 | 2,302 | 1,980 | 1,781 | 8,102 |
| 1 | 2017 | 1,370 | 1,675 | 1,749 | 1,926 | 6,720 | |
| 2016 | 1,022 | 1,037 | 1,036 | 1,352 | 4,447 | ||
| Operating profit (EBITA) (SEK million) | Q1 | Q2 | Q3 | Q4 | Full year | ||
| Medical Solutions | 2018 | 69 | 73 | 76 | 77 | 295 | |
| EBITA margin (%) | 13.0 | 13.0 | 12.8 | 13.3 | 13.0 | ||
| 2017 | 65 | 64 | 60 | 68 | 257 | ||
| EBITA margin (%) | 13.3 | 12.9 | 13.1 | 13.3 | 13.1 | ||
| 2016 | 52 | 53 | 52 | 59 | 216 | ||
| EBITA margin (%) | 13.3 | 13.4 | 13.2 | 12.7 | 13.1 | ||
| Integrated Solutions | 2018 | 120 | 140 | 114 | 99 | 473 | |
| EBITA margin (%) | 12.8 | 11.8 | 12.8 | 14.1 | 12.7 | ||
| 2017 | 38 | 73 | 105 | 116 | 332 | ||
| EBITA margin (%) | 9.5 | 10.5 | 12.8 | 12.9 | 11.8 | ||
| 2016 | 33 | 28 | 29 | 41 | 131 | ||
| EBITA margin (%) | 11.0 | 9.0 | 8.5 | 9.2 | 9.3 | ||
| Industrial Solutions | 2018 | 57 | 55 | 35 | 39 | 186 | |
| EBITA margin (%) | 10.0 | 9.9 | 7.1 | 7.7 | 8.8 | ||
| 2017 | 48 | 48 | 47 | 52 | 195 | ||
| EBITA margin (%) | 9.8 | 9.8 | 9.9 | 10.0 | 9.9 | ||
| 2016 | 34 | 34 | 30 | 36 | 134 | ||
| EBITA margin (%) | 10.2 | 10.3 | 10.0 | 8.1 | 9.5 | ||
| Group adjustments, Parent Company* | 2018 | 18 | – 2 | – 20 | – 1 | – 5 | |
| 2017 | – 5 | – 7 | – 3 | – 6 | – 21 | ||
| 2016 | – 6 | – 5 | – 7 | – 6 | – 24 | ||
| Group total | 2018 | 264 | 266 | 205 | 214 | 949 | |
| EBITA margin (%) | 12.9 | 11.6 | 10.4 | 12.0 | 11.7 | ||
| 2017 | 146 | 178 | 209 | 230 | 763 | ||
| EBITA margin (%) | 10.7 | 10.6 | 11.9 | 11.9 | 11.4 | ||
| 2016 | 113 | 110 | 104 | 130 | 457 | ||
| EBITA margin (%) | 11.1 | 10.6 | 10.0 | 9.6 | 10.3 | ||
* Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million.
| Depreciation/amortisation (SEK million) |
Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|
| Medical Solutions | 2018 | 28 | 28 | 28 | 28 | 112 |
| 2017 | 27 | 27 | 27 | 27 | 108 | |
| 2016 | 22 | 22 | 23 | 25 | 92 | |
| Integrated Solutions | 2018 | 8 | 8 | 8 | 7 | 31 |
| 2017 | 9 | 8 | 8 | 8 | 33 | |
| 2016 | 9 | 9 | 9 | 9 | 36 | |
| Industrial Solutions | 2018 | 25 | 25 | 28 | 26 | 104 |
| 2017 | 21 | 22 | 23 | 24 | 90 | |
| 2016 | 14 | 15 | 16 | 20 | 65 | |
| Parent company | 2018 | — | — | — | 1 | 1 |
| 2017 | — | — | — | — | — | |
| 2016 | — | — | — | — | — | |
| Group total | 2018 | 61 | 61 | 64 | 62 | 248 |
| 2017 | 57 | 57 | 58 | 59 | 231 | |
| 2016 | 45 | 46 | 48 | 54 | 193 |
| Q4 | Q4 | Full year | Full year | ||
|---|---|---|---|---|---|
| IFRS measures | Note | 2018 | 2017 | 2018* | 2017 |
| Basic earnings per share (SEK) | 3 | 6.01 | 6.84 | 27.44 | 21.74 |
| Diluted earnings per share (SEK) | 3 | 5.98 | 6.84 | 27.37 | 21.74 |
| Alternative performance measures | |||||
| Net sales (SEK million) | 1 | 1,781 | 1,926 | 8,102 | 6,720 |
| Sales growth (%) | – 8 | 42 | 21 | 51 | |
| Percentage of sales outside Sweden (%) | 84 | 83 | 86 | 82 | |
| Operating profit (EBITDA) (SEK million) | 275 | 286 | 1,189 | 980 | |
| 1) Operating profit (EBITA) (SEK million) |
214 | 230 | 949 | 763 | |
| 1) EBITA margin (%) |
12.0 | 11.9 | 11.7 | 11.4 | |
| Profit after financial income and expense (SEK million) | 2 | 210 | 225 | 921 | 731 |
| 1) Profit margin (%) |
11.8 | 11.7 | 11.4 | 10.9 | |
| Profit after tax (SEK million) | 158 | 180 | 722 | 572 | |
| 1) Return on total capital (%) |
18.4 | 17.1 | 18.4 | 17.1 | |
| 1) Return on capital employed (%) |
29.7 | 26.6 | 29.7 | 26.6 | |
| 1) Return on operating capital (%) |
40.0 | 32.1 | 40.0 | 32.1 | |
| 1) Return on shareholders' equity (%) |
30.4 | 29.4 | 30.4 | 29.4 | |
| Equity/assets ratio (%) | 50 | 45 | 50 | 45 | |
| Debt/equity (%) | 31 | 38 | 31 | 38 | |
| Interest coverage ratio (times) | 47 | 54 | 40 | 56 | |
| Net investm. affecting cash fl., excl. acq. and disposals (SEK million | 116 | 65 | 452 | 277 | |
| Cash flow after investments, excl. acq. and disposals (SEK million) | 122 | 157 | 593 | 496 | |
| 1) Cash conversion (%) |
— | — | 60 | 66 | |
| Net financial assets (+) / liabilities (–) (SEK million) | 159 | – 153 | 159 | – 153 | |
| Adjusted basic earnings per share (SEK) | 3 | 6.01 | 6.92 | 27.67 | 22.16 |
| Adjusted diluted earnings per share (SEK) | 3 | 5.98 | 6.91 | 27.59 | 22.15 |
| Cash flow from operations per share, before dilution (SEK) | 9.05 | 8.44 | 39.72 | 29.38 | |
| Cash flow from operations per share, after dilution (SEK) | 9.01 | 8.43 | 39.52 | 29.37 | |
| Cash flow after investments per share, excl. acquisitions | 4.64 | 5.97 | 22.54 | 18.85 | |
| and disposals, before dilution (SEK) | |||||
| Cash flow after investments per share, excl. acquisitions | 4.62 | 5.96 | 22.43 | 18.85 | |
| and disposals, after dilution (SEK) | |||||
| Shareholders' equity per share, before dilution (SEK) | — | — | 99 | 82 | |
| Shareholders' equity per share, after dilution (SEK) | — | — | 98 | 82 | |
| Average number of employees | — | — | 6,449 | 7,249 | |
* Including non-recurring items of SEK +20 million in Q1 2018 and SEK –17 million in Q3 2018, which affected operating profit by a net amount of SEK +3 million.
1) KPIs calculated as specified on page 22.
Earnings for the period that are attributable to the parent company's owners divided by the average number of outstanding shares.
Earnings per share Operating profit (EBIT)
Earnings before financial income and expense and taxes.
Nolato presents certain financial measures in this report that are not defined according to IFRS. Nolato considers that these measures provide valuable supplementary information for investors and company management, as they enable an assessment of trends and the company's performance. Since not all companies calculate financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not therefore be regarded as substitutes for measures defined according to IFRS.
Profit after financial income and expense, plus financial expenses as a percentage of average total capital in the balance sheet.
Profit after financial income and expense, plus financial expenses as a percentage of average capital employed. Capital employed consists of total capital less non-interest-bearing liabilities and provisions.
Operating profit as a percentage of average operating capital. Operating capital consists of total capital less non-interest-bearing liabilities and provisions, less interest-bearing assets.
Profit after tax as a percentage of average shareholders' equity.
Operating profit (EBITA) as a percentage of net sales. amortisation.
The average basic number of shares comprises the parent company's weighted average number of outstanding shares during the period. After dilution, a weighted average of the shares that may be issued under the ongoing share warrant programme is added, if they are in-the-money, but only insofar as the average listed share price for the period exceeds the subscription price of the warrants.
Profit after tax, excluding amortisation of intangible assets arising from acquisitions, divided by the average number of shares.
Cash flow from operating activities, divided by the average number of shares.
Cash flow before financing activities, divided by the average number of shares.
Cash flow after investments, excl. acquisitions and disposals, divided by operating profit (EBIT). Cash flow and operating profit have been adjusted by non-recurring items, if any.
Interest-bearing liabilities and provisions less interest-bearing assets.
Profit after financial income and expense, plus financial expenses, divided by financial expenses.
Earnings before financial income and expense, taxes and depreciation/
Earnings before financial income and expense, taxes and amortisation of intangible assets arising from acquisitions.
Equity/assets ratio Interest-bearing liabilities and provisions divided by shareholders' equity.
Shareholders' equity as a percentage of total capital in the balance sheet.
Some of the items reported relate to future events and actual outcomes may differ materially. In addition to those factors explicitly commented on, other factors may also materially affect the actual outcome, such as economic conditions, exchange rates and interest rate levels, political risks, competition and pricing, product development, commercialisation and technical difficulties, supply problems and customer credit losses.
| Q4 | Q4 | Full year | Full year | ||
|---|---|---|---|---|---|
| SEK million unless otherwise specified | Note | 2018 | 2017 | 2018 | 2017 |
| Operating profit (EBITDA) | 275 | 286 | 1,189 | 980 | |
| Non-recurring items | — | — | – 3 | — | |
| Adjusted operating profit (EBITDA) | 275 | 286 | 1,186 | 980 | |
| Operating profit (EBIT) | 2 | 213 | 227 | 941 | 749 |
| Reversal of amortisation of intangible assets arising | |||||
| in connection with acquisitions | 1 | 3 | 8 | 14 | |
| Operating profit (EBITA) | 214 | 230 | 949 | 763 | |
| Non-recurring items | — | — | – 3 | — | |
| Adjusted operating profit (EBITA) | 214 | 230 | 946 | 763 | |
| EBITA margin (%) | 12.0 | 11.9 | 11.7 | 11.4 | |
| Adjusted EBITA margin (%) | 12.0 | 11.9 | 11.7 | 11.4 | |
| Profit after financial income and expense | 2 | 210 | 225 | 921 | 731 |
| Non-recurring items | — | — | – 3 | — | |
| Adjusted profit after financial income and expense | 210 | 225 | 918 | 731 | |
| Profit margin (%) | 11.8 | 11.7 | 11.4 | 10.9 | |
| Adjusted profit margin (%) | 11.8 | 11.7 | 11.3 | 10.9 | |
| Profit after tax | 158 | 180 | 722 | 572 | |
| Non-recurring items | — | — | – 3 | — | |
| Tax on non-recurring items | — | — | – 4 | — | |
| Adjusted profit after tax | 158 | 180 | 715 | 572 | |
| Cash fl. after investm., excl. acquis. and disposals | — | — | 593 | 496 | |
| Non-recurring items (affecting cash flow) | — | — | – 29 | — | |
| Adj. cash fl. after investm., excl. acquis. and disposals | — | — | 564 | 496 | |
| Operating profit (EBIT) | 2 | — | — | 941 | 749 |
| Non-recurring items | — | — | – 3 | — | |
| Adjusted operating profit (EBIT) | — | — | 938 | 749 | |
| Cash conversion (%) | — | — | 60 | 66 |
Non-recurring items consist of a distribution from the previous bankruptcy of a customer in 2006 and a capital loss on a divested business. The dividend in Q1 2018 had a positive effect on operating profit of SEK +20 million (0) within other operating income and the capital loss in Q3 2018 had a negative impact on operating profit of SEK –17 million (0) within other operating expenses. These nonrecurring items have been recognised at Group level and have consequently not affected the profit of the business areas.
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK million unless otherwise specified | 2018 | 2018 | 2018 | 2018 | 2017 | 2017 | 2017 | 2017 | 2016 |
| Profit after financial income and expense, rolling 12 months | 921 | 936 | 936 | 849 | 731 | ||||
| Financial expense, rolling 12 months | 24 | 23 | 21 | 16 | 13 | ||||
| Adjusted profit after financial income and exp., rolling 12 months | 945 | 959 | 957 | 865 | 744 | ||||
| Total capital, at the end of period | 5,156 | 5,229 | 5,381 | 5,148 | 4,752 | 4,612 | 4,487 | 3,967 | 3,924 |
| Average total capital, last 5 quarters | 5,133 | 5,024 | 4,876 | 4,593 | 4,348 | ||||
| Return on total capital (%) | 18.4 | 19.1 | 19.6 | 18.8 | 17.1 | ||||
| Adjusted profit after financial income and exp., rolling 12 months | 945 | 959 | 957 | 865 | 744 | ||||
| Capital employed, at the end of period | 3,387 | 3,225 | 3,131 | 3,188 | 2,980 | 2,836 | 2,836 | 2,676 | 2,668 |
| Average capital employed, last 5 quarters | 3,182 | 3,072 | 2,994 | 2,903 | 2,799 | ||||
| Return on capital employed (%) | 29.7 | 31.2 | 32.0 | 29.8 | 26.6 | ||||
| Operating profit (EBIT), rolling 12 months | 941 | 955 | 958 | 868 | 749 | ||||
| Capital employed, at the end of period | 3,387 | 3,225 | 3,131 | 3,188 | 2,980 | 2,836 | 2,836 | 2,676 | 2,668 |
| Cash and bank, at the end of period | – 953 | – 818 | – 891 | – 817 | – 669 | – 561 | – 380 | – 311 | – 411 |
| Operating capital, at the end of period | 2,434 | 2,407 | 2,240 | 2,371 | 2,311 | 2,275 | 2,456 | 2,365 | 2,257 |
| Average operating capital, latest 5 quarters | 2,353 | 2,321 | 2,331 | 2,356 | 2,333 | ||||
| Return on operating capital (%) | 40.0 | 41.1 | 41.1 | 36.8 | 32.1 | ||||
| Profit after tax, rolling 12 months | 722 | 744 | 743 | 670 | 572 | ||||
| Shareholders' equity, at the end of period | 2,592 | 2,422 | 2,301 | 2,412 | 2,159 | 1,950 | 1,815 | 1,955 | 1,850 |
| Average shareholders' equity, latest 5 quarters | 2,377 | 2,249 | 2,127 | 2,058 | 1,946 | ||||
| Return on shareholders' equity (%) | 30.4 | 33.1 | 34.9 | 32.6 | 29.4 |
On 5 July 2018, the Nolato Group divested the subsidiary Nolato Hertila AB to Essentra International Limited, which is part of Essentra Plc. The sale price was SEK 58 million.
Nolato Hertila is focused on the production and sale of standard products that provide protection during painting, assembly and transportation, and it was the only company of this kind in the Group. The divestment is part of the Industrial Solutions business area's focus on developing and manufacturing customer-specific products for the automotive sector and general industry.
Nolato Hertila had 25 employees in Åstorp and annual sales of approximately SEK 40 million.
| Net assets | Balance sheet | ||||
|---|---|---|---|---|---|
| at time of sale SEK million | |||||
| Intangible non-current assets | 63 | ||||
| Property, plant and equipment | 6 | ||||
| Current assets | 11 | ||||
| Cash and cash equivalents | 1 | ||||
| Non-current liabilities | – 9 | ||||
| Net assets sold | 72 |
| Consolidated capital gains/losses | SEK million |
|---|---|
| Cash received, sales proceeds | 58 |
| Less selling expenses | – 3 |
| Less net assets sold | – 72 |
| Capital loss | – 17 |
| Effects on consolidated cash flow | SEK million |
|---|---|
| Cash received, sales proceeds | 58 |
| Less selling expenses | – 3 |
| Less cash and cash equivalents sold | – 1 |
| Net cash flow from the sale | 54 |
| Q4 | Q4 | Full year | Full year | |
|---|---|---|---|---|
| SEK million | 2018 | 2017 | 2018 | 2017 |
| Net sales | 14 | 10 | 63 | 50 |
| Selling expenses | – 2 | – 1 | – 7 | – 6 |
| Administrative expenses | – 13 | – 12 | – 49 | – 51 |
| Other operating income | 1 | 2 | 5 | 6 |
| Other operating expenses | – 12 | – 7 | – 47 | – 25 |
| Operating profit | – 12 | – 8 | – 35 | – 26 |
| Profit from participations in Group companies | 344 | 183 | 495 | 260 |
| Financial income | 4 | 25 | 14 | 46 |
| Financial expenses | – 23 | – 1 | – 60 | – 5 |
| Profit after financial income and expense | 313 | 199 | 414 | 275 |
| Appropriations | 252 | 244 | 252 | 244 |
| Tax | – 54 | – 66 | – 55 | – 66 |
| Profit after tax | 511 | 377 | 611 | 453 |
| Depreciation/amortisation | 1 | — | 1 | — |
| SEK million | 31/12/2018 | 31/12/2017 |
|---|---|---|
| Assets | ||
| Intangible fixed assets | 1 | 3 |
| Property, plant and equipment | 1 | 1 |
| Financial assets | 1,675 | 1,625 |
| Deferred tax assets | — | 5 |
| Total fixed assets | 1,677 | 1,634 |
| Other receivables | 903 | 705 |
| Cash and bank | 59 | 73 |
| Total current assets | 962 | 778 |
| Total assets | 2,639 | 2,412 |
| Shareholders' equity and liabilities | ||
| Shareholders' equity | 1,577 | 1,295 |
| Untaxed reserves | 199 | 200 |
| Deferred tax liabilities | 6 | — |
| Other provisions | 12 | 13 |
| Long-term liabilities | 556 | 519 |
| Current liabilities | 289 | 385 |
| Total shareholders' equity and liabilities | 2,639 | 2,412 |
| SEK million | Period | Services | Services | Interest | Interest | Res. from shares | Rec. fr. rel. part. | Liab. to rel. part. |
|---|---|---|---|---|---|---|---|---|
| Related party | sold | bought | income | expenses | in Group comp. | on bal. sh. date | on bal. sh. date | |
| Subsidiary | Full year 2018 | 63 | – 6 | 14 | — | 495 | 1,312 | 313 |
| Subsidiary | Full year 2017 | 50 | – 5 | 20 | — | 260 | 1,086 | 346 |
None of the company's Board members or senior executives currently have, or have previously had, any direct or indirect involvement in any business transaction with the company which is, or was, of an unusual character in terms of its conditions. Nor has the Group issued any loans, pledged any guarantees or entered into any surety arrangements for any of the company's Board members or senior executives.
Nolato AB, SE-269 04 Torekov, Sweden • Tel. +46 431 442290 • Fax +46 431 442291 Corp. id. number 556080-4592 • E-mail [email protected] • Website www.nolato.com
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