Earnings Release • May 11, 2017
Earnings Release
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Sweco started the year with the strongest quarter to date. EBITA increased by SEK 266 million to SEK 494 million, primarily driven by strong calendar tail wind. Positive effects from the Grontmij acquisition also contributed.
Our main priority is continued operational improvements. We remain focused on our customers, internal efficiency and having the best people in our business, in line with Sweco's operating model.
Backed by a strong financial position and as the market-leading architecture and engineering consultancy in Europe, Sweco is well-positioned for continued value-creating growth. Our strategy for the future is to repeat our history. We will continue to strengthen our Northern European footprint, through acquisitions and organic growth.
Overall, the market for Sweco's services is good. The Swedish market remains strong. The markets in Norway, Denmark, Western Europe and Central Europe are generally good. The markets in the Netherlands and Finland are improving.
Net sales increased 10 per cent to SEK 4,408 million (4,018). Organic growth was 7 per cent, of which 5 percentage points were due to calendar effects. Acquired growth contributed 1 per cent, while currency effects contributed 2 per cent to growth.
EBITA amounted to SEK 494 million (228), an improvement of SEK 266 million.
Since the Easter holiday fell in the second quarter of 2017, as opposed to the first quarter in 2016, there were 28 more working hours in this period compared to last year. This had a positive impact year-on-year impact on sales and EBITA of approximately SEK 202 million.
The absence of extraordinary items related to the Grontmij acquisition contributed to the improvement of EBITA by SEK 36 million.
The remaining improvement of approximately SEK 28 million was mainly due to synergies from the Grontmij acquisition.
The billing ratio was essentially stable at 74.4 per cent $(74.5)$ .
Amortisation of acquisition-related intangible assets amounted to SEK 17 million (23). EBIT amounted to SEK 477 million (205).
Net financial items amounted to SEK-12 million (-11). Profit before tax increased to SEK 465 million (194).
Income tax amounted to SEK-105 million (-46). Income tax last year was negatively impacted by non-deductible costs related to the Grontmij acquisition.
Profit after tax increased to SEK 360 million (148).
Earnings per share increased to SEK 3.01 per share $(1.24).$
| Key ratios, Actual | Actual Jan-Mar 2017 |
Actual Jan-Mar 2016 |
Actual Apr 2016-Mar 2017 |
Actual Full-year 2016 |
|---|---|---|---|---|
| Net sales, SEK M | 4,408 | 4.018 | 16,922 | 16.531 |
| Acquisition-related growth, % | 64 | 42 | ||
| Organic growth, % | 3 | |||
| EBITA, excl. extraordinary items, SEK M | 494 | 263 | 1,712 | 1,482 |
| Marain, % | 11.2 | 6.6 | 10.1 | 9.0 |
| EBITA, SEK M | 494 | 228 | 1.602 | 1,336 |
| Margin, % | 11.2 | 5.7 | 9.5 | 8.1 |
| Profit after tax, SEK M | 360 | 148 | 1.143 | 931 |
| Earnings per share, SEK | 3.01 | 1.24 | 9.55 | 7.78 |
| Number of full-time employees | 14,412 | 14,302 | 14,389 | 14,365 |
| Billing ratio | 74.4% | 74.5% | 74.9% | 74.9% |
| Normal working hours | 506 | 478 | 2.007 | 1,979 |
| Net debt/EBITDA | 0.8 | 2.1 | 1.0 |
Net sales by quarter and rolling 12 months
In Poland, Sweco signed new consultant service agreements for the Odra-Vistula Flood Management project. These represent Sweco's third and fourth contracts under the scheme and have an aggregate value of approximately SEK 53 million. The projects are being co-financed by the World Bank and is designed to improve flood protection for the area's residents. Sweco's main contribution concerns planning, design and supervision.
In the UK, Sweco has partnered with BAM Nuttall, and the two have jointly been appointed by the British Antarctic Survey (BAS) to provide design and construction services for the modernisation of research facilities in the Antarctic region. The programme was commissioned by the Natural Environment Research Council and will be carried out over the coming ten years. It will enable British scientists to continue vital research into major issues facing the planet.
In Germany, Sweco was commissioned to provide design services for a new building at Klinikum Stuttgart. The building will house the latest cancer therapy and nuclear medicine technologies. The project includes planning services, structural design, fire protection, technical equipment and thermal building physics. The building comprises a total of 6,350 m2. The project commenced in January 2017 and the new building will open to patients in late 2020.
Overall, the market for Sweco's services is good.
The Swedish market remains strong. The markets in Norway, Denmark, Western Europe and Central Europe are generally good. The markets in Finland and the Netherlands are improving.
Demand for Sweco's services predominantly follows the general macro economic trend in Sweco's markets, with some time lag.
The Northern European GDP development is solid and the development is stable. Political uncertainty, the global macro-economic situation and financial market events are risks to the development.
EBITA by quarter and rolling 12 months SEK million Actual
EVENTS DURING THE QUARTER
On 11 January Dariush Rezai was named the new president of Sweco Denmark. He began his role on 1 April.
On 6 February Sweco announced the acquisition of the Finnish company Karves Yhtiöt Ltd and the total share capital of its subsidiaries Karves Suunnittelu Ltd and Karves Energia & Valvonta Ltd. The companies have more than 50 employees. This further strengthens Sweco's offering and presence in the Finnish market.
After the end of the reporting period, dividends totalling SEK 513 million (418) were distributed to Sweco AB shareholders.
CASH FLOW AND FINANCIAL POSITION Group cash flow from operating activities totalled SEK 190 million (-244). Net debt decreased to SEK 1,536 million (2,033).
The net debt/EBITDA ratio was 0.8 times (2.1).
Available cash and cash equivalents, including unutilised credit lines, totalled SEK 2,157 million (1,672) at the end of the reporting period.
Investments in equipment totalled SEK 63 million (50) and were primarily attributable to IT investments. Depreciation of equipment totalled SEK 56 million (55) and amortisation of intangible assets totalled SEK 27 million (34).
Purchase consideration paid to acquire companies and operations totalled SEK 41 million (10) and had an impact of SEK-36 million (-5) on Group cash and cash equivalents. No divestments were made. Last year, divestments generated purchase consideration of SEK 9 million which had an impact on group cash of SEK 9 million. Repurchases of Sweco shares totalled SEK 71 million and had the same effect on Group cash and cash equivalents.
EBITA increased by 48 per cent to SEK 251 million and the EBITA margin improved 3.7 percentage points to 13.5 per cent. The improvement in EBITA was mainly due to a positive calendar effect and an increase in hourly fees.
Organic growth was 7 per cent during the quarter. The calendar effect of +28 hours had a positive year-on-year impact of approximately SEK 82 million on net sales and EBITA.
The Swedish market remains strong. There is strong demand in the construction and real estate sector, particularly in the larger cities. The infrastructure market is also strong, supported by major public investments. The industrial market is stable and the market for IT-related services is developing positively. The market for power transmission services is strong, while the energy generation market is weak.
| Actual | Actual | |
|---|---|---|
| Net sales and profit | Jan-Mar 2017 | Jan-Mar 2016 |
| Net sales, SEK M | 1.854 | 1,736 |
| Organic growth, % | ||
| Currency, % | Ŋ | |
| EBITA, SEK M | 251 | 170 |
| EBITA marain, % | 13.5 | 9.8 |
| Number of full-time employees | 5,506 | 5.469 |
EBITA improved by SEK 59 million. Organic growth was 9 per cent during the quarter. The improvement in EBITA and organic growth were mainly attributable to the greater number of working hours as a result of Easter falling in the second quarter of this year, as opposed to the first quarter in 2016. The year-on-year calendar effect of +56 hours had a positive impact of approximately SEK 50 million on net sales and EBITA.
EBITA was also positively affected by lower project adjustments and an increase in fees.
The Norwegian market is good, but demand is unevenly distributed. Markets in the greater Oslo region are strong within public infrastructure, private and public commercial construction and residential construction. The markets in southern and western Norway are still challenging, while the northern areas are experiencing moderate growth.
| IN BRIFF | ||
|---|---|---|
| Net sales and profit | Actual Jan-Mar 2017 |
Actual Jan-Mar 2016 |
| Net sales, SEK M | 590 | 499 |
| Organic growth, % | 9 | 2 |
| Currency, % | 8 | -9 |
| EBITA, SEK M | 88 | 29 |
| EBITA marain, % | 14.9 | 5.8 |
| Number of full-time employees | 1,327 | 1,353 |
Net sales increased to SEK 487 million (425). EBITA increased by SEK 40 million and the margin improved 7.8 percentage points to 12.6 per cent. The sales and profit improvement were mainly attributable to the positive calendar effect and lower project adjustments. Calendar effects of +29 hours had a positive year-on-year impact of approximately SEK 26 million on net sales and EBITA.
The Finnish economy has basically had zero GDP growth since 2011, but has gradually improved during the last year. The demand for Sweco's services is stable and developing positively, primarily in the building market in the Helsinki region. Demand for industry, construction and real estate-related services is improving, while the infrastructure market remains challenging.
| Actual | Actual | |
|---|---|---|
| Net sales and profit | Jan-Mar 2017 | Jan-Mar 2016 |
| Net sales, SEK M | 487 | 425 |
| Organic growth, % | 10 | 11 |
| Acquisition-related growth, % | 3 | |
| Currency, % | $\mathfrak{p}$ | $-1$ |
| EBITA, SEK M | 61 | 21 |
| EBITA marain, % | 12.6 | 4.8 |
| Number of full-time employees | 2.010 | 1.972 |
EBITA increased to SEK 30 million (4) and the EBITA margin improved 6.4 percentage points to 7.6 per cent. The profit improvement was primarily due to higher average fees and a positive calendar effect.
Organic growth was 15 per cent. The revenue increase was mainly attributable to increased subconsultant revenue of a one-off nature and a positive calendar effect. Calendar effects of +29 hours had a positive year-on-year impact of approximately SEK 18 million on net sales and EBITA.
The market in Denmark is generally good and developing positively. The construction and real estate sector is developing well and is particularly strong in the larger cities. The infrastructure market is stable except for a weaker demand in road construction. Demand in the water and energy sector is stable.
| Net sales and profit | Actual Jan-Mar 2017 |
Actual Jan-Mar 2016 |
|---|---|---|
| Net sales, SEK M | 389 | 330 |
| Organic growth, % | 15 | |
| Currency, % | $\overline{\phantom{a}}$ | -1 |
| EBITA, SEK M | 30 | 4 |
| EBITA marain, % | 7.6 | 1.2 |
| Number of full-time employees | 1.023 | 1.118 |
EBITA increased by SEK 10 million and the margin improved 1.9 percentage points to 6.3 per cent. The profit improvement was mainly attributable to an improved billing ratio and a positive calendar effect.
Sales increased to SEK 440 million (423). A calendar effect of +16 hours had a positive year-on-year impact of approximately SEK 11 million on net sales and EBITA.
The market in the Netherlands has been challenging for several years due to the country's real estate and financial crisis. The market is improving, particularly within private building construction. Sweco Netherlands delivers services primarily in the areas of public infrastructure, energy, water and public sector buildings. These markets typically lag behind the private construction market.
Sweco Netherlands is continuing on its journey to sustainably improve operational performance. The implementation of a new customer-focused organisational model and staff reductions were completed in 2016. Sweco Netherlands is now taking the next step with a cultural change program focused on collaboration and leadership, aimed at implementing Sweco's operating model.
| Net sales and profit | Actual Jan-Mar 2017 |
Actual Jan-Mar 2016 |
|---|---|---|
| Net sales, SEK M | 440 | 423 |
| Organic growth, % | 3 | $-9$ |
| Acquisition-related growth, % | $-1$ | |
| Currency, % | $\overline{\phantom{a}}$ | -1 |
| EBITA, SEK M | 28 | 18 |
| EBITA marain, % | 6.3 | 4.4 |
| Number of full-time employees | 1,392 | 1.491 |
EBITA increased to SEK 28 million (23) and the margin improved 1.1 percentage points to 7.0 per cent, mainly due to a positive calendar effect.
Net sales increased by SEK 2 million. Net sales were affected by a positive calendar effect as well as negative currency effect. Calendar effects of +11 hours had a positive year-on-year impact of approximately SEK 8 million on net sales and EBITA.
Demand for Sweco's services in the UK remained good throughout the quarter. The infrastructure and the water markets are good. The energy and building markets are stable. Although there are no tangible signs of a slowdown, there is uncertainty about market development following the EU referendum ("Brexit").
The market in Belgium is generally stable within all market segments. The private and public building markets are improving. The industry market and the public infrastructure markets are good.
| Net sales and profit | Actual Jan-Mar 2017 |
Actual Jan-Mar 2016 |
|---|---|---|
| Net sales, SEK M | 400 | 398 |
| Organic growth, % | 4 | 6 |
| Currency, % | -3 | -3 |
| EBITA, SEK M | 28 | 23 |
| EBITA marain, % | 7.0 | 5.9 |
| Number of full-time employees | 1,556 | 1.493 |
Sales increased to SEK 285 million (221) due to both double-digit organic and acquisition-related growth in Germany. A calendar effect of +22 hours had a positive year-on-year impact of approximately SEK 9 million on net sales and EBITA.
EBITA increased to SEK 13 million (3) and the EBITA margin improved 3.4 percentage points to 4.5 per cent. The main contributions to improved profits came from the existing German business and the acquisitions of Ludes and Jo. Franzke.
The German market is good overall and is developing positively. The health care and commercial markets are good. Demand is strong in the transport and environmental sector due to public investments, while the energy market remains challenging.
The Lithuanian market is experiencing weak development due to delayed EU investments in public infrastructure, water and environment. The new rounds of EU investments were initiated in the third quarter of 2016 and are expected to gradually increase. The Czech market remains challenging, although there is solid demand for Sweco's services. The Polish market is developing positively with good investments in energy, transportation and water.
Parent Company net sales totalled SEK 134 million (128) and were attributable to intra-group services. Profit after net financial items totalled SEK-9 million (-46). Investments in equipment totalled SEK 1 million (5). Cash and cash equivalents at the end of the period totalled SEK 275 million (16).
Sweco complies with the International Financial Reporting Standards (IFRS) and interpretive statements from the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the EU. This interim report was prepared in accordance with IAS 34, Interim Reporting; the Swedish Annual Accounts Act; and the Swedish Financial Reporting Board's RFR 2, Reporting for Legal Entities.
To align internal and external reporting, Sweco has as of 1 January 2017 changed the definition of Net Sales. EBITA and Number of full-time employees as below.
The definition of Acquisition-related items and therefore also the definition of EBITA, has been adjusted. The profit on the divestment of buildings and land has been moved from Net Sales to Acquisition-related items, and the loss on the divestment of buildings and land has been moved from Other expenses to Acquisition-related items. The definition of Acquisition-related items has thus been changed to "Amortisation and impairment of goodwill and acquisition-related intangible assets, revaluation of additional purchase price, profit and loss on the divestment of companies and operations, and profit and loss on the divestment of buildings and land". Historic figures have been restated, but the change has no impact on reported figures.
The definition of Net sales has been adjusted to exclude internal revenues concerning internal administrative services. This change only affects Net sales of the business areas. Net sales for previous periods has been restated. This change has no impact on consolidated group sales and no impact on reported EBITA of the group or of the business areas.
As of 1 January 2017, the accounting treatment of socalled agency staff has been aligned across the group. This means that agency staff that were previously reported as employees by former Grontmij entities will now be reported as subconsultants. Historical financial figures have not been restated due to this change in accounting treatment, however, the Number of full-time employees has been restated for previous periods.
In all other respects, the Group applies the same accounting and valuation principles as those described in Note 1 of the 2016 annual report. In this interim report, amounts in brackets refer to the corresponding period of the previous year. Because table items are individually
rounded off, table figures do not always tally. The interim report comprises pages 1 - 15; interim financial information presented on pages 1 - 15 is therefore part of this financial report.
As of third quarter of 2016 Sweco follows the guidelines from ESMA (European Securities and Markets Authority) regarding APMs (Alternative Performance Measures). In brief, these are measures of historical or ongoing operating results and financial performance that are not specified or defined in IFRS. The presentation of non-IFRS financial measures is limited as an analytical tool and should not be used as a substitute for key ratios pursuant to IFRS. Sweco believes that the APMs will enhance the investor's evaluation of our ongoing operating results, aid in forecasting future periods and facilitate meaningful comparison of results between periods. The non-IFRS financial measures presented in this report may differ from similarly titled measures used by other companies. A complete list of all Sweco's definitions can be found on our website: http://www.sweco.se/en/IR/definitions/.
Key ratio calculations that cannot be obtained directly from the income statement and balance sheet can be found on page 15 (revenue growth) and page 14 (EBITA excluding extraordinary items).
The Sweco share is listed on Nasdag Stockholm. The share price of the Sweco Class B share was SEK 204.20 at the end of the period, representing a 13 per cent increase during the quarter. The Nasdag Stockholm General Index increased by 5 per cent over the same period.
The total number of shares at the end of the period was 121,983,819: 10,533,731 Class A shares, 110,550,088 Class B shares and 900,000 Class C shares. The total number of outstanding shares was 119.298.701: 10,533,731 Class A shares and 108,764,970 Class B shares.
RESOLUTIONS AT THE 2017 ANNUAL GENERAL MEETING 2017 share savings scheme: Pursuant to the Board's proposal, the 2017 AGM resolved to implement a longterm share savings scheme for up to 100 Sweco Group senior executives and other key employees.
2017 share-based incentive scheme: Pursuant to the Board's proposal, the 2017 AGM resolved to implement a share-based incentive scheme for employees in Sweden.
Pursuant to the Nomination Committee's proposal, the 2017 AGM resolved that the Board of Directors consist of eight members. Pursuant to the Nomination Committee's proposal, Elaine Weidman Grunewald was choosen as a new member. Anders G Carlberg, Tomas Carlsson, Gunnel Duveblad, Johan Hjertonsson, Eva Lindqvist, Johan Nordström and Christine Wolff were re-elected. Further,
Johan Nordström was re-elected as Chairman of the Board of Directors. Carola Teir-Lehtinen declined reelection.
Significant risks and uncertainties affecting the Sweco Group and the Parent Company include business risks associated with the general economic trend and investment level in various markets, the capacity to attract and retain skilled personnel and the effects of political decisions. The Group is also exposed to various types of financial risks, such as foreign currency, interest rate and credit risks. No significant risks are deemed to have arisen apart from the risks detailed in Sweco's 2016 annual report (page 94, Risks and Risk Management).
The number of normal working hours in 2017, based on the 12-month sales-weighted business mix as of September 2016, is broken down as follows:
| 2017 | 2016 | ||
|---|---|---|---|
| Quarter 1: | 506 | 478 | $+28$ |
| Quarter 2: | 464 | 490 | -26 |
| Quarter 3: | 511 | 518 | -7 |
| Quarter 4: | 490 | 493 | -3 |
| Total: | 1.971 | 1.979 | -8 |
ACQUISITION-RELATED INTANGIBLE ASSETS Acquisition-related intangible assets will be amortised pursuant to the following schedule, based on acquisitions to date:
| SEK-92 million |
|---|
| SEK-65 million |
| SEK-55 million |
| SFK-29 million |
FORTHCOMING FINANCIAL INFORMATION 20 July 2017 Interim report January-June Interim report January-September 27 October 2017 Year-end report 2017 13 February 2018
Stockholm, 11 May 2017
Tomas Carlsson President and CEO. Member of the Board of Directors
FOR FURTHER INFORMATION. PLEASE CONTACT: Tomas Carlsson, President and CEO Phone +46 8 695 66 60 / +46 70 552 92 75 [email protected]
Jonas Dahlberg, CFO Phone +46 8 695 63 32 / +46 70 347 23 83 [email protected]
SWECO AB (publ) Org. nr. 556542-9841 Gjörwellsgatan 22, Box 34044, 100 26 Stockholm, Phone: +46 8 695 60 00 Email: [email protected] www.swecogroup.com
This report has not been audited.
| Key ratios 1) | Jan-Mar 2017 | Jan-Mar 2016 | Apr 2016-Mar 2017 | Full-year 2016 |
|---|---|---|---|---|
| Profitability | ||||
| EBITA margin, % | 11.2 10.8 |
5.7 5.1 |
9.5 9.0 |
8.1 7.6 |
| Operating margin (EBIT), % | 10.5 | 4.8 | 8.8 | 7.4 |
| Profit margin, % | ||||
| Revenue growth 2) | ||||
| Organic growth, % | $\overline{7}$ | $\mathbf{1}$ | 3 | |
| Acquisition-related growth, % | $\mathbf{1}$ | 64 | 42 | |
| Currency, % | $\overline{c}$ | $-2$ | $\mathcal{O}$ | |
| Total growth, % | 10 | 63 | 45 | |
| Debt | ||||
| Net debt, SEK M | 1,536 | 2,033 | 1,558 | |
| Interest-bearing debt, SEK M | 2,042 | 2,378 | 2.451 | |
| Financial strength | ||||
| Net debt/Equity, % | 26.9 | 40.5 | 28.7 | |
| Net debt/EBITDA, x | 0.8 | 2.1 | 1.0 | |
| Equity/Assets ratio, % | 40.7 | 39.1 | 39.3 | |
| Available cash and cash equivalents, SEK M | 2.157 | 1.672 | 2.138 | |
| -of which unutilised credit, SEK M | 1.651 | 1.327 | 1.245 | |
| Return | ||||
| Return on equity, % | 21.3 | 12.1 | 18.0 | |
| Return on capital employed, % | 20.5 | 12.5 | 16.8 | |
| Share data | ||||
| Earnings per share, SEK | 3.01 | 1.24 | 9.55 | 7.78 |
| Diluted earnings per share, SEK | 2.95 | 1.22 | 9.37 | 7.65 |
| Equity per share, SEK3) | 47.82 | 41.90 | 45.37 | |
| Diluted equity per share, SEK 3) | 46.77 | 41.39 | 44.47 | |
| Number of outstanding shares at reporting date |
119,298,701 | 119,485,136 | 119,554,270 | |
| Number of repurchased Class B and Class C shares |
2,685,118 | 1.609.694 | 2,429,549 |
$^{\rm 1)}$ Key ratio definitions are available on Sweco's website.
2) See page 15 for details on Sweco's calculation of revenue growth.
3) Refers to portion attributable to Parent Company shareholders.
| Income Statement | ||||
|---|---|---|---|---|
| SEK M | Jan-Mar 2017 | Jan-Mar 2016 | Apr 2016-Mar 2017 | Full-year 2016 |
| Net sales | 4,408 | 4,018 | 16,922 | 16,531 |
| Other income | O | n | n | |
| Other external expenses | $-1,036$ | $-952$ | $-4,135$ | $-4.052$ |
| Personnel expenses | $-2,811$ | $-2,769$ | $-10,917$ | $-10,875$ |
| EBITDA | 562 | 296 | 1,870 | 1,605 |
| Amortisation/depreciation and impairments |
$-67$ | $-69$ | $-267$ | $-269$ |
| EBITA | 494 | 228 | 1,602 | 1,336 |
| Acquisition-related items 1) | $-17$ | $-23$ | $-81$ | $-87$ |
| Operating profit (EBIT) | 477 | 205 | 1,522 | 1,249 |
| Net financial items | $-12$ | $-11$ | $-35$ | -33 |
| Profit before tax | 465 | 194 | 1,486 | 1,216 |
| Income tax | $-105$ | -46 | $-343$ | -285 |
| PROFIT FOR THE PERIOD | 360 | 148 | 1,143 | 931 |
| Attributable to: | ||||
| Parent Company shareholders | 359 | 148 | 1,142 | 930 |
| Non-controlling interests | 0 | 0 | 1 | 1 |
| Earnings per share attributable to Parent Company shareholders, SEK |
3.01 | 1.24 | 9.55 | 7.78 |
| Average number of shares Dividend per share, SEK |
119,499,224 | 119,475,201 | 119,604,825 | 119,598,820 4.30 |
$^{\text{1)}}$ Acquisition-related items are defined as amortisation and impairment of goodwill and acquisition-related intangible assets, revaluation of additional purchase price, and
profit and loss on the divestment of comp
| Consolidated income statement and other comprehensive | ||||
|---|---|---|---|---|
| income, SEK M | Jan-Mar 2017 | Jan-Mar 2016 | Apr 2016-Mar 2017 | Full-year 2016 |
| Profit for the period | 360 | 148 | 1.143 | 931 |
| Items that will not be reversed in the income statement | ||||
| Revaluation of defined benefit pensions, net after tax 1,2 | $-1$ | $-21$ | $-10$ | $-30$ |
| Items that may subsequently be reversed in the income state- ment |
||||
| Translation differences, net after tax | $-9$ | $-28$ | 58 | 38 |
| Translation differences transferred to profit for the period | $\overline{\phantom{0}}$ | |||
| COMPREHENSIVE INCOME FOR THE PERIOD | 350 | 99 | 1,192 | 940 |
| Attributable to: | ||||
| Parent Company shareholders | 350 | 99 | 1.190 | 939 |
| Non-controlling interests | 0 | 0 | ||
| $1)$ Tax on revaluation of defined benefit pensions | Ω | $-2$ | 5 |
$2$ Revalued annually. Reviewed quarterly in the event of material changes to actuarial assumptions.
| Cash flow statement | ||||
|---|---|---|---|---|
| SEK M | Jan-Mar 2017 | Jan-Mar 2016 | Apr 2016-Mar 2017 | Full-year 2016 |
| Cash flow from operating activities before | 552 | 274 | 1.955 | 1.677 |
| changes in working capital and tax paid | ||||
| Tax paid | $-83$ | $-81$ | $-198$ | $-196$ |
| Changes in working capital | $-279$ | $-437$ | $-158$ | $-316$ |
| Cash flow from operating activities | 190 | $-244$ | 1,599 | 1,165 |
| Cash flow from investing activities | $-103$ | $-56$ | $-448$ | $-401$ |
| Cash flow from financing activities | $-474$ | 110 | $-1.012$ | $-428$ |
| CASH FLOW FOR THE PERIOD | $-387$ | $-190$ | 139 | 336 |
| Balance sheet | |||
|---|---|---|---|
| SEKM | 31 Mar 2017 | 31 Mar 2016 | 31 Dec 2016 |
| Goodwill | 6,116 | 5.757 | 6.098 |
| Other intangible assets | 333 | 390 | 346 |
| Property, plant and equipment | 629 | 637 | 616 |
| Financial assets | 215 | 167 | 219 |
| Current assets excl. cash and cash equivalents | 6.235 | 5,528 | 5,650 |
| Cash and cash equivalents incl. short-term investments | 506 | 345 | 892 |
| TOTAL ASSETS | 14,033 | 12,825 | 13,820 |
| Equity attributable to Parent Company shareholders | 5,705 | 5.007 | 5,424 |
| Non-controlling interests | 11 | 10 | |
| Total equity | 5,715 | 5,015 | 5,435 |
| Non-current interest-bearing liabilities | 1,093 | 1.878 | 1.515 |
| Other non-current liabilities | 846 | 737 | 833 |
| Current interest-bearing liabilities | 949 | 500 | 936 |
| Other current liabilities | 5.430 | 4.694 | 5,102 |
| TOTAL EQUITY AND LIABILITIES | 14,033 | 12,825 | 13,820 |
| Pledged assets | 21 | 22 | |
| Contingent liabilities | 696 | 646 | 706 |
| Changes in equity SEKM |
Jan-Mar 2017 | Jan-Mar 2016 | |||||
|---|---|---|---|---|---|---|---|
| Equity at- tributable to Parent Company shareholders |
Non- controlling interests |
Total equity | Equity at- tributable to Parent Company shareholders |
Non- controlling interests |
Total equity | ||
| Equity, opening balance | 5,424 | 10 | 5,435 | 4,899 | 9 | 4,907 | |
| Comprehensive income for the period | 350 | 0 | 350 | 99 | 0 | 99 | |
| Preferential rights issue | 0 | $\overline{\phantom{a}}$ | 0 | - | $\overline{\phantom{0}}$ | ||
| Buy-back of treasury shares | $-71$ | 1 | $-71$ | $-20$ | $\overline{\phantom{a}}$ | -20 | |
| Sales of treasury shares | $\overline{\phantom{a}}$ | 3 | $\overline{\phantom{0}}$ | ||||
| Share-based incentive schemes | 0 | $\overline{\phantom{a}}$ | 0 | 25 | ٠ | 25 | |
| Share savings schemes | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | |||||
| EQUITY, CLOSING BALANCE | 5,705 | 11 | 5,715 | 5,007 | 9 | 5,015 |
During the period Sweco acquired the Finnish operations of Karves Yhtiöt Ltd and the total share capital of its subsidiaries Karves Suunnittelu Ltd and Karves Energia & Valvonta Ltd. The acquired businesses have an aggregate total of 54 employees. Purchase consideration totalled SEK 41 million and had a negative impact on cash and cash equivalents of SEK 36 million. The acquisitions impacted the consolidated balance sheet as detailed in the table below. Of the unsettled purchase price commitment of SEK 3 million, SEK 3 million refers to conditional contingent consideration. During the period the acquired companies contributed SEK 9 million in sales and SEK 2 million in operating profit (EBIT). If all of the companies had been owned as of 1 January 2017 they would have contributed approximately SEK 14 million in sales and about SEK 2 million in operating profit.
| Acquisitions, SEK M | |
|---|---|
| Intangible assets | 39 |
| Property, plant and equipment | |
| Financial assets | 0 |
| Current assets | 12 |
| Non-current liabilities | $-3$ |
| Deferred tax | $-2$ |
| Other current liabilities | -6 |
| Total purchase consideration | 41 |
| Unsettled purchase price commitment | $-3$ |
| Cash and cash equivalents | -2 |
| DECREASE IN GROUP CASH AND CASH EQUIVALENTS | 36 |
| Acquisition-related items SEKM |
Jan-Mar 2017 | Jan-Mar 2016 | Apr 2016-Mar 2017 | Full-year 2016 |
|---|---|---|---|---|
| Amortisation of acquisition-related intangible assets |
$-17$ | $-23$ | -86 | -92 |
| Revaluation of additional purchase price | $\overline{\phantom{a}}$ | |||
| Profit/loss on divestment of companies and operations |
||||
| ACQUISITION-RELATED ITEMS | $-17$ | $-23$ | -81 | -87 |
The Group's financial assets measured at fair value totalled SEK 15 million (14). The derivative instruments are forward currency contracts, the fair value of which are determined based on listed prices for forward currency contracts on the balance sheet date (Level 2). The fair value of unlisted financial assets is determined through market valuation techniques (observable market inputs) such as recent transactions, listed prices of similar instruments and discounted cash flows. In the event no reliable inputs are available for determining fair value, financial assets are reported at acquisition value (Level 3). There were no transfers between levels during the period.
Sweco has restated historical figures for Q1-Q3 2015 to reflect the new Sweco Group organisational structure, effective as of 1 October 2015. Grontmij is included pro forma as if the acquisition had taken place on 31 December 20141). Further, the figures of 2015 and 2016 have been restated to reflect the new definition of Net Sales. EBITA and Number of full-time employees as described on page 8.
| Quarterly summary 2) | Actual 201701 |
Actual 2016 04 |
Actual 2016 03 |
Actual 2016 02 |
Actual 2016 01 |
Actual 2015 04 |
Pro forma 2015 03 |
Pro forma 2015 02 |
Pro forma 2015 01 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales, SEK M | |||||||||
| Sweco Sweden | 1,854 | 1.951 | 1,465 | 1,913 | 1,736 | 1,900 | 1,372 | 1,775 | 1,713 |
| Sweco Norway | 590 | 530 | 457 | 568 | 499 | 508 | 401 | 551 | 531 |
| Sweco Finland | 487 | 462 | 402 | 471 | 425 | 483 | 372 | 400 | 386 |
| Sweco Denmark | 389 | 351 | 334 | 361 | 330 | 365 | 320 | 331 | 334 |
| Sweco Netherlands | 440 | 434 | 434 | 455 | 423 | 450 | 445 | 465 | 471 |
| Sweco Western Europe | 400 | 420 | 365 | 395 | 398 | 428 | 389 | 393 | 384 |
| Sweco Central Europe | 285 | 297 | 289 | 243 | 221 | 261 | 218 | 244 | 223 |
| Group-wide, Eliminations, etc. | $-36$ | $-24$ | $-22$ | $-36$ | $-15$ | $-46$ | $-12$ | $-39$ | $-19$ |
| TOTAL GROUP | 4,408 | 4,421 | 3,723 | 4,370 | 4,018 | 4,350 | 3,504 | 4,120 | 4,024 |
| EBITA, SEK M | |||||||||
| Sweco Sweden | 251 | 273 | 129 | 280 | 170 | 211 | 91 | 186 | 184 |
| Sweco Norway | 88 | 58 | 40 | 68 | 29 | 52 | 24 | 44 | 40 |
| Sweco Finland | 61 | 41 | 35 | 42 | 21 | 35 | 27 | 10 | 17 |
| Sweco Denmark | 30 | 44 | 27 | 23 | $\overline{4}$ | 28 | 18 | -8 | $\mathbf 0$ |
| Sweco Netherlands | 28 | $\mathbf 0$ | $-4$ | 12 | 18 | $-1$ | 12 | 0 | 14 |
| Sweco Western Europe | 28 | 30 | 18 | 33 | 23 | 25 | 22 | 23 | 13 |
| Sweco Central Europe | 13 | 26 | 18 | 11 | 3 | 19 | 7 | 11 | 12 |
| Group-wide, Eliminations, etc. | $-4$ | $-77$ | $-12$ | $-9$ | $-40$ | $-170$ | $-63$ | $-79$ | $-23$ |
| EBITA | 494 | 395 | 252 | 462 | 228 | 200 | 138 | 187 | 257 |
| Extraordinary items 3) | $\overline{\phantom{a}}$ | 83 | 15 | 12 | 36 | 190 | 59 | 70 | 1 |
| EBITA excl. extraordinary items | 494 | 478 | 266 | 474 | 263 | 390 | 197 | 257 | 258 |
| EBITA margin, % | |||||||||
| Sweco Sweden | 13.5 | 14.0 | 8.8 | 14.6 | 9.8 | 11.1 | 6.6 | 10.5 | 10.7 |
| Sweco Norway | 14.9 | 11.0 | 8.8 | 12.0 | 5.8 | 10.2 | 6.1 | 8.0 | 7.5 |
| Sweco Finland | 12.6 | 8.8 | 8.7 | 8.9 | 4.8 | 7.2 | 7.4 | 2.6 | 4.3 |
| Sweco Denmark | 7.6 | 12.6 | 8.0 | 6.5 | 1.2 | 7.7 | 5.6 | $-2.3$ | 0.1 |
| Sweco Netherlands | 6.3 | $-0.1$ | $-0.8$ | 2.7 | 4.4 | $-0.3$ | 2.6 | 0.1 | 2.9 |
| Sweco Western Europe | 7.0 | 7.1 | 5.0 | 8.4 | 5.9 | 5.9 | 5.7 | 5.8 | 3.4 |
| Sweco Central Europe | 4.5 | 8.9 | 6.2 | 4.7 | 1.1 | 7.2 | 3.0 | 4.5 | 5.4 |
| EBITA margin | 11.2 | 8.9 | 6.8 | 10.6 | 5.7 | 4.6 | 3.9 | 4.5 | 6.4 |
| Extraordinary items 3 ) | 1.9 | 0.4 | 0.2 | 0.9 | 4.4 | $1.7\,$ | 1.7 | 0.0 | |
| EBITA margin excl. extraordinary | 11.2 | 10.8 | 7.2 | 10.8 | 6.6 | 9.0 | 5.6 | 6.2 | 6.4 |
| items | |||||||||
| Billing ratio, % | 74.4% | 75.3% | 74.6% | 75.1% | 74.5% | 74.7% | 74.1% | 74.8% | 73.2% |
| Number of normal working hours | 506 | 493 | 518 | 490 | 478 | 492 | 519 | 469 | 488 |
| Number of full-time employees | 14,412 | 14,482 | 14,172 | 14,507 | 14,302 | 14,344 | 14,049 | 14.436 | 14,290 |
1)Pro forma information is based on the consolidated income statements for the first three quarters of 2015 for Sweco and Grontmij, respectively. Sweco and Grontmij both apply IFRS. Financial pro forma information has been compiled and presented in accordance with Sweco's accounting
policies as described in Sweco's 2015 annual report. Grontmij's financials have been presentation. Pro forma information is only intended to describe a hypothetical situation and has been prepared solely for illustrative purposes.
2)Pro forma information excludes Grontmij's French activities which were d Group-wide, Eliminations, etc. includes Group functions, the operations in China, and Grontmii's real estate operations. 3) Extraordinary items include Sweco's and Grontmij's extraordinary items to the extent they are part of Sweco's definition of EBITA. All extraordinary items are included in Group-wide.
| Number of full-time | ||||||||
|---|---|---|---|---|---|---|---|---|
| January-March | Net sales, SEK M | EBITA, SEK M | EBITA margin,% | employees | ||||
| Business area | Actual 2017 |
Actual $2016^{2}$ |
Actual 2017 |
Actual $2016^{2}$ |
Actual 2017 |
Actual $2016^{2}$ |
Actual 2017 |
Actual $2016^{2}$ |
| Sweco Sweden | 1.854 | 1.736 | 251 | 170 | 13.5 | 9.8 | 5,506 | 5,469 |
| Sweco Norway | 590 | 499 | 88 | 29 | 14.9 | 5.8 | 1,327 | 1,353 |
| Sweco Finland | 487 | 425 | 61 | 21 | 12.6 | 4.8 | 2,010 | 1,972 |
| Sweco Denmark | 389 | 330 | 30 | 4 | 7.6 | 1.2 | 1,023 | 1,118 |
| Sweco Netherlands | 440 | 423 | 28 | 18 | 6.3 | 4.4 | 1.392 | 1.491 |
| Sweco Western Europe | 400 | 398 | 28 | 23 | 7.0 | 5.9 | 1,556 | 1,493 |
| Sweco Central Europe | 285 | 221 | 13 | 3 | 4.5 | 1.1 | 1.512 | 1.321 |
| Group-wide, Eliminations, etc. 1) | -36 | $-15$ | -4 | $-40$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 85 | 85 |
| TOTAL GROUP | 4,408 | 4,018 | 494 | 228 | 11.2 | 5.7 | 14,412 | 14,302 |
$^{10}$ Group-wide, Eliminations, etc. includes Group functions, the operations in China, and Grontmij's real estate operations. All extraordinary items are included in Group-wide.
② 2016 restated to reflect the new definit
| Revenue growth, actual | Actual 2017 Jan-Mar |
Actual 2016 Jan-Mar |
Growth,% Jan-Mar |
|---|---|---|---|
| Net sales | 4,408 | 4,018 | 10% |
| Currency effects | 58 | 2% | |
| Net sales currency-adjusted | 4,408 | 4,075 | 8% |
| Acquisitions/divestments | $-19$ | 21 | 1% |
| Comparable net sales currency-adjusted | 4.389 | 4.096 | 7% |
| Parent Company income statement, SEK M | Jan-Mar 2017 | Jan-Mar 2016 | Full-year 2016 |
|---|---|---|---|
| Net sales | 134 | 128 | 538 |
| Operating expenses | $-138$ | $-166$ | $-600$ |
| Operating loss | -5 | $-39$ | $-63$ |
| Net financial items | -4 | Ξ. | 551 |
| Profit/loss after net financial items | -9 | -46 | 488 |
| Appropriations | 10 | ||
| Profit/loss before tax | -9 | -46 | 499 |
| Tax | -86 | ||
| PROFIT/LOSS AFTER TAX | -9 | -46 | 413 |
| Parent Company balance sheet, SEK M | 31 Mar 2017 | 31 Dec 2016 |
|---|---|---|
| Intangible assets | 71 | 75 |
| Property, plant and equipment | 49 | 54 |
| Financial assets | 6,346 | 6.346 |
| Current assets | 1,929 | 2,572 |
| TOTAL ASSETS | 8,395 | 9,047 |
| Equity | 4,548 | 4.626 |
| Untaxed reserves | 12 | 12 |
| Non-current liabilities | 961 | 1,379 |
| Current liabilities | 2.874 | 3,030 |
| TOTAL EQUITY AND LIABILITIES | 8.395 | 9,047 |
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