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Per Aarsleff Holding Interim / Quarterly Report 2015
3412_rns_2016-02-25_6261066c-5c32-4674-a1ba-85cc47e6699f.pdf
Interim / Quarterly Report
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NASDAQ COPENHAGEN A/S
1/13
Nasdaq Copenhagen A/S
P.O. Box 1040
1007 København K
25 February 2016
Ref.: JSZ/tms
Interim report for the period 1 October-31 December 2015
Today, the Board of Directors of Per Aarsleff A/S has discussed and approved the interim report for the first quarter of the financial year 2015/2016. The interim report has not been audited or reviewed by the company's auditor.
First quarter results
- Profit before tax came to DKK 119 million compared to DKK 123 million in the same quarter of last financial year.
- Consolidated revenue came to DKK 2,555 million, on a par with the first quarter of last financial year.
- Construction generated profit before interest of DKK 78 million.
- Pipe Technologies generated profit before interest of DKK 31 million.
- Ground Engineering generated profit before interest of DKK 14 million.
- The Group's net interest-bearing deposit came to DKK 435 million as at 31 December 2015.
- The equity ratio was 43.1% as at 31 December 2015.
Outlook for the financial year 2015/2016
- For the financial year 2015/2016, profit before tax of DKK 430 million is anticipated and a slightly increased level of activity compared with the financial year 2014/2015.
- On 7 January 2016, the Danish competition authorities approved the acquisition of Hansson & Knudsen A/S, and the company was thus included from January 2016.
Andreas Lundby
Chairman of the Board
Ebbe Malte Iversen
General Manager
Further information:
General Manager Ebbe Malte Iversen, Per Aarsleff A/S, tel. +45 8744 2222.
Per Aarsleff A/S
Main office
Lokesvej 15
DK-8230 Aabyhoej
Denmark
Tel +45 8744 2222
Fax +45 8744 2249
Copenhagen office
Industriholmen 2
DK-2650 Hvidovre
Denmark
Tel +45 3679 3333
Fax +45 3679 3300
CVR no. 24257797
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
2/13
AARSLEFF
Highlights for the Group
| Amounts in DKK million | First quarter | Financial year | |
|---|---|---|---|
| 2015/2016 | 2014/2015 | 2014/2015 | |
| Income statement | |||
| Revenue | 2,555 | 2,545 | 10,254 |
| Of this figure, work performed abroad | 673 | 861 | 3,145 |
| Operating profit | 123 | 133 | 487 |
| Profit before interest | 123 | 131 | 484 |
| Net financials | -4 | -8 | -29 |
| Profit before tax | 119 | 123 | 455 |
| Profit after tax | 90 | 94 | 366 |
| Balance sheet | |||
| Non-current assets | 2,012 | 1,743 | 1,939 |
| Current assets | 3,445 | 2,984 | 4,051 |
| Total assets | 5,457 | 4,727 | 5,990 |
| Equity | 2,353 | 2,019 | 2,265 |
| Non-current liabilities | 725 | 592 | 725 |
| Current liabilities | 2,379 | 2,116 | 3,000 |
| Total equity and liabilities | 5,457 | 4,727 | 5,990 |
| Net interest-bearing debt | -435 | -91 | -373 |
| Invested capital (IC) | 1,907 | 1,915 | 1,880 |
| Cash flow statement | |||
| Cash flows from operating activities | 201 | 395 | 1,124 |
| Cash flows from investing activities | -138 | -91 | -626 |
| Of this figure, investment in property, plant and equipment, net | -138 | -74 | -377 |
| Cash flows from financing activities | -1 | 2 | -91 |
| Change in liquidity for the period | 62 | 306 | 407 |
| Financial ratios | |||
| Gross margin ratio, % | 12.7 | 12.3 | 11.9 |
| Profit margin (EBIT margin), % | 4.8 | 5.1 | 4.8 |
| Net profit ratio (pre-tax margin), % | 4.7 | 4.8 | 4.4 |
| Return on invested capital (ROIC), % * | 6.5 | 6.6 | 24.2 |
| Return on invested capital after tax (ROIC), % * | 4.9 | 5.0 | 19.5 |
| Return on equity (ROE), % * | 3.9 | 4.8 | 17.4 |
| Equity ratio, % | 43.1 | 42.7 | 37.8 |
| Earnings per share (EPS), DKK | 4.41 | 4.61 | 17.98 |
| Number of employees | 5,364 | 4,726 | 4,932 |
Please see page 56 of the 2014/2015 annual report for financial ratio definitions.
*Not translated into full year figures.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
3/13
AARSLEFF
Management's review concerning the first quarter of the financial year 2015/2016
Financial development of the Aarsleff Group
Income statement
In the first quarter of the financial year 2015/2016, consolidated revenue came to DKK 2,555 million, on a par with last financial year. The Danish operations reported a revenue increase of 12%, while the foreign operations reported a revenue decrease of 22%.
Administrative expenses and selling costs amounted to 7.9% of revenue compared to 7.1% in the first quarter of last financial year.
Operating profit came to DKK 122.8 million against DKK 133.2 million in the same quarter of last financial year.
Net financials were negative at DKK 3.8 million against a negative amount of DKK 7.8 million last financial year.
Profit before tax reached DKK 118.8 million in the first quarter of the financial year against a profit of DKK 123.3 million in the same quarter of last financial year.
Consolidated profit after tax was DKK 90.0 million in the first quarter of the financial year against a profit of DKK 94.0 million last financial year.
Balance sheet
The consolidated balance sheet total came to DKK 5,457 million at 31 December 2015. This corresponds to a decrease of DKK 533 million compared to the balance sheet total of DKK 5,990 million at the end of last financial year.
Consolidated interest-bearing liabilities less interest-bearing assets constituted a net deposit of DKK 435 million against a net deposit of DKK 373 million at 30 September 2015.
Equity amounted to DKK 2,353 million against DKK 2,265 million at the end of last financial year or 43.1% of the balance sheet total compared with 37.8% at the beginning of the financial year.
Cash flow statement
Cash flows from operating activities amounted to DKK 201 million against DKK 395 million in the same quarter of last financial year.
Cash flows from investing activities were negative at DKK 138 million against a negative amount of DKK 91 million in the same quarter of last financial year.
Cash flows from financing activities amounted to a negative amount of DKK 1 million against DKK 2 million in the same quarter of last financial year.
Thus, the change in liquidity for the period was positive at DKK 62 million.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
4/13
AARSLEFF
Segment results
| Amounts in DKK million | Construction | Pipe Technologies | Ground Engineering | Total | ||||
|---|---|---|---|---|---|---|---|---|
| First quarter | First quarter | First quarter | First quarter | |||||
| 2015/2016 | 2014/2015 | 2015/2016 | 2014/2015 | 2015/2016 | 2014/2015 | 2015/2016 | 2014/2015 | |
| Segment revenue | 1,793 | 1,736 | 412 | 437 | 372 | 397 | 2,577 | 2,570 |
| Internal revenue | -15 | -10 | -3 | -7 | -4 | -8 | -22 | -25 |
| Revenue | 1,778 | 1,726 | 409 | 430 | 368 | 389 | 2,555 | 2,545 |
| Of this figure, work performed abroad | 207 | 318 | 254 | 307 | 212 | 236 | 673 | 861 |
| Operating profit | 78 | 69 | 31 | 36 | 14 | 28 | 123 | 133 |
| Profit/loss in associates and joint ventures | 0 | 0 | 0 | -2 | 0 | 0 | 0 | -2 |
| Profit before interest | 78 | 69 | 31 | 34 | 14 | 28 | 123 | 131 |
| Net financials | -4 | -8 | ||||||
| Profit before tax | 119 | 123 | ||||||
| EBIT margin, % | 4.4 | 4.0 | 7.6 | 7.9 | 3.8 | 7.2 | 4.8 | 5.1 |
| Number of employees | 3,682 | 3,159 | 802 | 807 | 880 | 760 | 5,364 | 4,726 |
Construction – results were slightly above expectations
First quarter revenue came to DKK 1,778 million against DKK 1,726 million in the same period of last financial year. Revenue generated by the Danish operations increased by 12% to DKK 1,571 million. Revenue generated by the foreign operations decreased by 35% to DKK 207 million; the first quarter of last financial year was characterised by a high level of activity on the new Värtahamnen in Stockholm. First quarter revenue in Istak hf. came to DKK 79 million. The company was included from 15 May 2015 and thus not included in the first quarter of the financial year 2014/2015.
Profit before interest was DKK 78 million against DKK 69 million last financial year. Results were slightly above expectations at the beginning of the financial year.
Overall, the results of Construction's subsidiaries met the expectations at the beginning of the financial year.
On 7 January 2016, the Danish competition authorities approved the acquisition of Hansson & Knudsen A/S, and the company was thus included in the segment from January 2016.
Our expectations for the full financial year 2015/2016 remain unchanged, corresponding to a profit before interest of approx. 4% of revenue and a slightly increased level of activity compared with last financial year.
Pipe Technologies – results on a par with expectations at the beginning of the year
First quarter revenue came to DKK 409 million or 5% lower than last financial year. Revenue generated by the Danish operations increased by 26% to DKK 155 million. Revenue generated by the foreign operations decreased by 17% to DKK 254 million.
Profit before interest was DKK 31 million compared to DKK 34 million last financial year, on a par with expectations at the beginning of the financial year.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
5/13
AARSLEFF
In Denmark, the level of activity of the municipal utility companies and the housing and industry segments exceeded expectations and therefore, the contribution to the results was higher. The quarter included the execution of two major, specialised pipe renewal projects for utility companies.
The level of activity and the performance of export projects within drinking water and wastewater supply and pipe renewal were significantly influenced by the difficult market conditions in Russia, Ukraine and the Baltic countries.
Total results of the subsidiaries were slightly above expectations at the beginning of the financial year. There was a positive development of activities in the companies in Sweden, Finland and Germany.
The outlook for the full financial year 2015/2016 remains unchanged. Pipe Technologies expects revenue to be on a par with last financial year and profit before interest of approx. 4% of revenue.
Ground Engineering – results fell short of expectations
First quarter revenue came to DKK 368 million or 5% lower than the same period of last financial year. Revenue generated by the Danish operations came to DKK 156 million, on a par with last financial year. Revenue generated by the foreign operations decreased by 10% to DKK 212 million.
Profit before interest was DKK 14 million compared to DKK 28 million last financial year and is below expectations at the beginning of the financial year.
The performance of the Danish activities was slightly below expectations. Total results of the subsidiaries fell short of expectations, mainly due to the performance of the companies in Poland and the UK.
For the full financial year, we maintain our expectations for an increasing level of activity and a profit before interest of approx. 6% of revenue.
Outlook for the financial year 2015/2016
For the financial year 2015/2016, profit before tax of DKK 430 million is anticipated and a slightly increased level of activity compared with the financial year 2014/2015.
The expectations concerning the future financial performance are subject to uncertainties and risks that may cause the performance to differ from the expectations. Significant commercial risks are described in Assessment of commercial risks of the annual report of 2014/2015 and note 2 on Estimation uncertainty. Significant risks and uncertainties remain unchanged compared with the description in the annual report.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
6/13
AARSLEFF
Accounting policies
The interim report covering the first quarter of the financial year 2015/2016 has been prepared in accordance with IAS 34 "Interim Financial Reporting" and additional Danish disclosure requirements for interim reports of listed companies.
No interim report has been prepared for the parent company.
The accounting policies of the interim report remain unchanged from the 2014/2015 Annual Report which has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of listed companies. Please refer to the 2014/2015 Annual Report for a further description of the accounting policies.
Certain new or changed standards or interpretations have become effective for the financial year 2015/2016. It is the Management's view that these standards and interpretations will have no significant effect on the annual report.
The interim report is presented in Danish kroner (DKK) which is the parent company's functional currency.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
7/13
AARSLEFF
Management's statement
Today, the Board of Directors and Executive Management have discussed and approved the interim report of Per Aarsleff A/S for the period 1 October-31 December 2015.
The interim report has been prepared in accordance with IAS 34 "Interim Financial Reporting" and additional Danish disclosure requirements for interim reports of listed companies.
The interim report has not been audited or reviewed by the company's auditor.
We consider the accounting policies used to be appropriate. Accordingly, the interim report gives a true and fair view of the financial position at 31 December 2015 of the Group as well as of the results of the Group's operations and cash flows in the period 1 October-31 December 2015.
In our opinion, Management's review includes a true and fair account of the development in the operations and financial circumstances of the Group, of the results for the period and of the financial position of the Group as well as a description of the most significant risks and elements of uncertainty facing the Group.
Åbyhøj, 25 February 2016
Executive Management
Ebbe Malte Iversen
General Manager
Lars M. Carlsen
Board of directors
Andreas Lundby
Chairman of the Board
Jens Bjerg Sørensen
Deputy Chairman
Carsten Fode
Peter Arndrup Poulsen
Britta Hoier
Staff-elected
Søren Kristensen
Staff-elected
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
8/13
AARSLEFF
Consolidated income statement
Amounts in tDKK
| First quarter | ||
|---|---|---|
| 2015/2016 | 2014/2015 | |
| Revenue | 2,555,107 | 2,544,833 |
| Production costs | -2,229,748 | -2,231,747 |
| Gross profit | 325,359 | 313,086 |
| Administrative expenses and selling costs | -202,423 | -179,973 |
| Other operating income and expenses | -123 | 49 |
| Operating profit | 122,813 | 133,162 |
| Profit/loss in associates and joint ventures | -194 | -2,000 |
| Profit before interest | 122,619 | 131,162 |
| Net financials | -3,796 | -7,843 |
| Profit before tax | 118,823 | 123,319 |
| Tax on profit for the period | -28,794 | -29,324 |
| Profit after tax | 90,029 | 93,995 |
| Earnings per share (DKK) | 4.41 | 4.61 |
Statement of comprehensive income
Amounts in tDKK
| First quarter | ||
|---|---|---|
| 2015/2016 | 2014/2015 | |
| Profit after tax | 90,029 | 93,995 |
| Items which may become reclassified to the income statement | ||
| Exchange rate adjustments relating to foreign entities | 2,058 | -23,424 |
| Fair value adjustments of derivative financial instruments, net | -5,589 | -3,120 |
| Tax on other comprehensive income | 1,230 | 0 |
| Other comprehensive income recognised directly in equity | -2,301 | -26,544 |
| Total comprehensive income | 87,728 | 67,451 |
| Total comprehensive income accrues to | ||
| Shareholders of Per Aarsleff A/S | 87,528 | 67,531 |
| Minority shareholders | 200 | -80 |
| Total | 87,728 | 67,451 |
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
9/13
AARSLEFF
Consolidated balance sheet
Amounts in tDKK
| 31/12 2015 | 30/9 2015 | 31/12 2014 | |
|---|---|---|---|
| Total assets | |||
| Intangible assets | 176,906 | 178,144 | 172,108 |
| Property, plant and equipment | 1,817,788 | 1,743,406 | 1,556,338 |
| Other non-current assets | 17,560 | 17,798 | 14,472 |
| Non-current assets | 2,012,254 | 1,939,348 | 1,742,918 |
| Inventories | 219,366 | 210,726 | 195,686 |
| Contracting debtors | 1,700,213 | 2,154,706 | 1,879,694 |
| Work in progress | 524,829 | 530,874 | 348,134 |
| Other receivables | 78,256 | 92,467 | 99,973 |
| Securities | 196,236 | 196,457 | 0 |
| Cash | 726,047 | 865,568 | 460,207 |
| Current assets | 3,444,947 | 4,050,798 | 2,983,694 |
| Total assets | 5,457,201 | 5,990,146 | 4,726,612 |
Equity and liabilities
| Equity | 2,352,831 | 2,265,103 | 2,018,910 |
|---|---|---|---|
| Mortgage debt and credit institutions | 185,244 | 184,008 | 198,115 |
| Other debt and provisions | 131,280 | 138,746 | 92,919 |
| Deferred tax | 408,268 | 402,416 | 300,541 |
| Non-current liabilities | 724,792 | 725,170 | 591,575 |
| Mortgage debt and credit institutions | 246,534 | 448,411 | 127,400 |
| Work in progress | 623,275 | 626,308 | 530,024 |
| Trade payables | 894,204 | 1,312,437 | 945,488 |
| Other payables | 615,565 | 612,717 | 513,215 |
| Current liabilities | 2,379,578 | 2,999,873 | 2,116,127 |
| Total liabilities | 3,104,370 | 3,725,043 | 2,707,702 |
| Total equity and liabilities | 5,457,201 | 5,990,146 | 4,726,612 |
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
10/13
AARSLEFF
Consolidated cash flow statement
Amounts in tDKK
| First quarter | ||
|---|---|---|
| 2015/2016 | 2014/2015 | |
| Cash flow from operating activities | ||
| Profit before interest | 122,619 | 131,162 |
| Depreciation, amortisation and impairment losses | 71,591 | 69,977 |
| Other adjustments | 10,492 | 194,718 |
| Net financials | -3,796 | -7,843 |
| Corporation tax paid | -401 | 6,918 |
| Cash flows from operating activities | 200,505 | 394,932 |
| Cash flow from investing activities | ||
| Net investment in property, plant and equipment and intangible assets | -138,497 | -74,355 |
| Net investment in subsidiaries | 0 | -16,289 |
| Net investment in associates and joint ventures | 930 | 0 |
| Cash flows from investing activities | -137,567 | -90,644 |
| Cash flow from financing activities | -864 | 2,313 |
| Cash flows from financing activities | -864 | 2,313 |
| Change in liquidity for the period | 62,074 | 306,601 |
| Opening liquidity | 435,678 | 30,095 |
| Change in liquidity for the period | 62,074 | 306,601 |
| Closing liquidity | 497,752 | 336,696 |
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
11/13
AARSLEFF
Statement of changes in equity, Group
Amounts in tDKK
| Reserve for exchange rate | Hedging reserve | Retained earnings | Proposed dividend | Total share-holders of Per Aarsleff A/S | Minority shareholders | Total | ||
|---|---|---|---|---|---|---|---|---|
| Share capital | adjustments | |||||||
| Equity at 1 October 2014 | 45,300 | -33,961 | 4,517 | 1,894,893 | 33,975 | 1,944,724 | 7,584 | 1,952,308 |
| Total comprehensive income | ||||||||
| Profit for the year | 94,075 | 94,075 | -80 | 93,995 | ||||
| Other total comprehensive income | ||||||||
| Exchange rate adjustments of foreign companies | -23,424 | -23,424 | -23,424 | |||||
| Fair value adjustments of derivative financial instruments | -3,120 | -3,120 | -3,120 | |||||
| Other total comprehensive income | 0 | -23,424 | -3,120 | 0 | 0 | -26,544 | 0 | -26,544 |
| Total comprehensive income | 0 | -23,424 | -3,120 | 94,075 | 0 | 67,531 | -80 | 67,451 |
| Equity at 31 December 2014 | 45,300 | -57,385 | 1,397 | 1,988,968 | 33,975 | 2,012,255 | 6,655 | 2,018,910 |
| Equity at 1 October 2015 | 45,300 | -52,494 | 850 | 2,196,912 | 67,950 | 2,258,518 | 6,585 | 2,265,103 |
| Total comprehensive income | ||||||||
| Profit for the year | 89,829 | 89,829 | 200 | 90,029 | ||||
| Other total comprehensive income | ||||||||
| Exchange rate adjustments of foreign companies | 2,058 | 2,058 | 2,058 | |||||
| Fair value adjustments of derivative financial instruments | -5,589 | -5,589 | -5,589 | |||||
| Tax on derivative financial instruments | 1,230 | 1,230 | 1,230 | |||||
| Other total comprehensive income | 0 | 2,058 | -4,359 | 0 | 0 | -2,301 | 0 | -2,301 |
| Total comprehensive income | 0 | 2,058 | -4,359 | 89,829 | 0 | 87,528 | 200 | 87,728 |
| Equity at 31 December 2015 | 45,300 | -50,436 | -3,509 | 2,286,741 | 67,950 | 2,346,046 | 6,785 | 2,352,831 |
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
12/13
AARSLEFF
Company announcements published this current financial year
12 October 2015 Aarsleff signs conditional agreement for acquisition of the shares in Hansson & Knudsen A/S
12 November 2015 Aarsleff involved in preliminary collaboration on the development of the central post office area in Copenhagen
21 December 2015 Preliminary announcement of financial statements for the financial year 2014/2015
21 December 2015 Stock split to enhance the liquidity of the Aarsleff share
06 January 2016 Notice convening the Annual General Meeting of Per Aarsleff A/S
07 January 2016 Aarsleff's acquisition of the shares in Hansson & Knudsen A/S has been approved
18 January 2016 Notification pursuant to section 55 of the Danish Companies Act and section 29 of the Danish law on securities trading etc.
21 January 2016 Establishment of a holding company structure in the Aarsleff Group
29 January 2016 Annual General Meeting of Per Aarsleff A/S
22 February 2016 Extraordinary General Meeting in Per Aarsleff A/S
See www.aarsleff.com for further information.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com
13/13
AARSLEFF
This interim report is a translation of Per Aarsleff A/S's official Danish interim report. The original Danish text shall take precedence and in case of discrepancy, the Danish wording shall prevail.
Interim report for the period 1 October-31 December 2015
Company announcement no. 10 / 25.2.2016
www.aarsleff.com