Our staff welcomed the challenge of internationalisation and has shown genuine enthusiasm towards building something new.

Transcription

1 ANNUAL REPORT

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3 ,, Our staff welcomed the challenge of internationalisation and has shown genuine enthusiasm towards building something new. BROMAN GROUP REVIEW BY THE CHAIRMAN OF THE BOARD OF DIRECTORS p. 4 MOTONET MANAGING DIRECTOR S REVIEW p. 7 VARAOSAMAAILMA MANAGING DIRECTOR S REVIEW p. 8 BG VARASTO MANAGING DIRECTOR S REVIEW p. 9 INTERNATIONALISATION THE GROUP STARTED OPERATIONS IN ESTONIA p. 10 FINANCIAL STATEMENTS BUSINESS INDICATORS The Group p. 14 PROFIT AND LOSS ACCOUNT The Group p. 15 BALANCE SHEET The Group p. 16 BROMAN GROUP THE BOARD OF DIRECTORS p. 18 GROUP ORGANISATION CHART AND OUTLETS p. 19

4 EERO BROMAN BROMAN GROUP Review by the Chairman of the Board of Directors Strong investment for the future and a good result Over the past year, we made the largest investments in the history of our company. We built new business premises and expanded our operations at a high speed. We invested a good 60 million euros in total in the investments and the inventories in the new business premises. Over the period under review, we opened the first Motonet outlet in Tallinn, Estonia. Our staff increased by 192 people. The result of the past financial period remained somewhat lower than last year, but it was still at a good level. Our turnover grew by 16.0 % to million euros. Our operating profit remained at the same level as last year, being 36.0 million euros, and our equity ratio was 70.8 %. We expanded abroad and will tighten up cooperation Over the period under review, we opened the first Motonet outlet in Tallinn, Estonia. To accomplish the project, many Motonet staff members had to learn new skills and work hard to open the new shop. I believe that the experience we gained will help us in many ways in the future. We increased cooperation between AD VaraosaMaailma and Motonet, and the combined outlet concept, in particular, proved to be viable. Over the upcoming period, the cooperation will be even tighter, and the best qualities of both business chains will be strengthened. We would also like to tighten up cooperation with the Motonet repair shops run by private entrepreneurs operating in connection with Motonet shops. During the period under review, four new Motonet repair shops were opened. Over the upcoming period, the number of repair shops will continue to increase. New Managing Director to head the business chains A significant change took place in the management of business operations of the Broman Group as of 1 October 2016, when Antti Tiitola started as the manager of Motonet, Varaosamaailma and BG Varasto. I am happy about our decision and I am sure that we will achieve a great deal together in the future. Antti is a true business professional, and he is off to a good start in his work. I wish Antti success in his new job. I will continue to work for the good of the company as a full-time Chairman of the Board of Directors of the Group, so we will see each other regularly in the future, as well. Changes also took place in the Group s Board of Directors in early Sanna Suvanto-Harsaae and Peter Ahlström started as new members. The meetings of the Board of Directors have been inspiring, and we have achieved plenty of good decisions. I am proud of each positive customer feedback that I receive in various connections. A warm thank you to our staff for their excellent work contribution. I would also like to extend my thanks to our partners for their excellent cooperation over the past year. Let s continue the good work for the benefit of our customers. 4

5 ,, I am proud of each positive customer feedback that I receive in various connections. EERO BROMAN BROMAN GROUP the Chairman of the Board of Directors 5

6 ,, It has been great to join a dynamic family company. We have an excellent opportunity to develop and grow our operations, both in Finland and abroad. ANTTI TIITOLA MOTONET, AD VARAOSAMAAILMA, BG VARASTO Managing Director 6

7 A year of strong growth for Motonet MOTONET OY Managing Director s Review We expanded our operations heavily during the past year. We opened five entirely new outlets in Finland and one in Tallinn, Estonia. In addition, we moved to new premises in Joensuu and Lahti. We have continued to develop both our product range and services. We want to continue to introduce new product combinations and the services linked to them to our customers. Our extensive product range, Finnish ownership base, and good price-quality ratio are the cornerstones for our success. The year was challenging for our organisation, but with good planning and cooperation, we succeeded very well in implementing our growth strategy. We have continued to gain new customers, and the number of loyal customers has increased to over a million. Our strong growth continued The year under review was a year of strong growth. Our turnover increased by 17.6 %, being million euros. Our operating profit increased by 3.7 % to 35.2 million euros. Our profitability is excellent. We have continued to gain new customers, and the number of loyal customers has increased to over a million. Our investments in versatile marketing have supported our growth strategy. More services for our customers We continued to develop our Motomaatti testing and service station. Our customers have been very happy to get help for small check-ups and fitting jobs. The awareness of the Motomaatti service has clearly increased during the period under review. This is also evident in the number of customers using the service. We have placed more emphasis on the marketing of the service and the service itself. We also began to test car wash services in four localities. We would like to gain more experience about this for the future. Year 2017 full of challenges On the first day of the current financial period, 1 October 2016, we opened a new department store in Mikkeli. In addition, we will open a new department store in Kokkola and move to new premises in Hämeenlinna and Lappeenranta. The active development of our network will also continue with the renewal of Motomaatti stations, the opening of new Motonet repair shops, and the development of car wash services. The development of services in outlets and support services, such as online shopping and telephone service, will be our key development areas in Our success is based on our staff, whom I wish to thank for their excellent work contribution. Let s continue the joint development efforts in the year to come. 7

8 VARAOSAMAAILMA OY Managing Director s Review The car spare parts trade took a turn for the better The almost three-year decline in sales turned into growth. The national sales in the business sector grew by over 7 %. The extremely cold weather in early January 2016, in particular, boosted the sales of several product groups for the entire year. The turnover of Varaosamaailma Oy for the financial period grew by 4.0%, being 33.3 million euros. The operating profit continued to grow, being 1.5 million euros ( mill. euros). Our combined outlet concept continued to expand During the period under review, our Savonlinna and Kajaani outlets moved to the same premises with a Motonet and focused on wholesale operations only. In addition, we opened a new outlet in Tornio, in the same building as a Motonet outlet. At the very beginning of the new financial period, we also moved the wholesale operations of our Mikkeli outlet into the same premises as a Motonet. Our chain of shops now comprises 22 outlets, of which 14 are MotVom combined outlets. Year 2017 We will continue to renew our outlet network in Joensuu and Lappeenranta, for example. We will place special emphasis on the development of our network and services in the Helsinki region. We will also continue to focus on the training and improvement of the professional skills of our staff. I would also like to take the opportunity to thank the entire staff of AD VaraosaMaailma for a job well done. We will place special emphasis on the development of our network and services in the Helsinki region. We will also continue to focus on the training and improvement of the professional skills of our staff. 8

9 Efficient logistics for our customers needs BG VARASTO OY Managing Director s Review We inaugurated the new extension of our logistics centre on 1 February This square metre extension enables even better logistics services for our own outlets and our partners. The extension has enabled a better organisation of our logistics processes, which again has had a significant effect on the overall efficiency of the logistics. Significant growth in volume The turnover of BG Varasto increased by 26.5 %, being 91.4 million euros. Our operating profit was 2.9 million euros. The average number of personnel during the period reviewed was 78. In 2017, we will once again extend our logistics centre by 10,000 square metres. We have started to plan the extension. The building work will begin in early spring, and the new extension will be completed by the end of the year. The services of BG Varasto are produced by a committed staff, whom I wish to thank for their excellent work contribution. SOME OF THE BRANDS WE REPRESENT LOGISTICS CENTRE surface area sq. m volume cu. m pallet spaces shelves for 36 km small items in addition, a storage room for flammable liquids 9

10 ,, we employ an average of twenty people in our Estonia outlet. 10

11 The Group started operations in Estonia Over two years ago, the Board of Directors of Broman Group Oy decided to start business operations in Estonia. After the decision, a great deal of work has been carried out to implement the project. Motonet Estonia OÜ (a subsidiary owned 100 % by Motonet Oy) opened its first outlet in the Lasnamäki district of Tallinn on 4 May 2016 in the past financial period. Several years ago already, the Internet introduced international competition to Finnish retail traders. Online sales have been growing for us, as well as other traders, lately. At the same time, the transparency of prices has increased. All of this means lower prices for the consumers. In Estonia, the price level of products, in general, is lower than in Finland. By starting business operations in a market where the consumer prices are lower, we are forced to take a critical look at all of our operations. Starting operations in a new market area naturally requires learning and doing new things. Our staff welcomed the challenge of internationalisation and has shown genuine enthusiasm towards building something new. Department Store Manager Tomi Ranta is in charge of the operations in Estonia, and we employ an average of twenty people in our Estonia outlet. The outlet is situated in an excellent spot (between Prisma and Bauhaus) in premises measuring about 3,500 square metres. Naturally, Motonet is not as well known in Estonia as it is in Finland, but it is becoming better and better recognised. Our customer loyalty programme is in use in our Tallinn outlet, as well. The launching of business operations in Estonia has required heavy investments, but we are certain that the experience gained has strengthened us and has also prepared our Group for facing the ever-tightening competition in Finland, too. Starting operations in a new market area naturally requires learning and doing new things. 11

12 ,, Our operating profit remained at the same level as last year, being 36.0 million euros, and our equity ratio was 70.8 %. EERO BROMAN BROMAN GROUP the Chairman of the Board of Directors 12

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14 Business indicators TURNOVER / M NUMBER OF PERSONNEL OPERATING PROFIT / M EQUITY RATIO / %

15 Consolidated profit and loss account CONSOLIDATED PROFIT AND LOSS ACCOUNT TURNOVER Other operating income Materials and services Materials, supplies and consumables Purchases during the financial period Change in inventories Materials and services Personnel expenses Wages, salaries and fees Social security expenses Pension expenses Other social security expenses Social security expenses Personnel expenses Depreciation and reduction in value Other operating expenses OPERATING PROFIT Financial income and expenses Income from other investments in non-current assets Other interest and financial income Interest and other financial expenses Financial income and expenses PROFIT BEFORE APPROPRIATIONS AND TAXES Income taxes Taxes for the financial year and previous financial years Imputed taxes RESULT OF THE FINANCIAL PERIOD

16 Consolidated balance sheet CONSOLIDATED BALANCE SHEET ASSETS NON-CURRENT ASSETS Intangible assets Intangible rights Business value Other long-term expenses Intangible assets in total Tangible assets Land and water areas Buildings and constructions Machinery and equipment Other tangible assets Prepayments and purchases in progress Tangible assets in total Investments Holdings in Group companies Other shares and participations Other investments Investments in total NON-CURRENT ASSETS IN TOTAL CURRENT ASSETS Inventories Goods Inventories Receivables Non-current Receivables from Group companies Loans receivable Other receivables Current Trade receivables Receivables from Group companies Loans receivable Other receivables Prepayments and accrued income Total receivables Marketable securities included in current assets Other shares and participations Cash in hand and at banks CURRENT ASSETS IN TOTAL ASSETS IN TOTAL

17 Consolidated balance sheet CONSOLIDATED BALANCE SHEET LIABILITIES SHAREHOLDER S EQUITY Share capital Retained profit/loss Net profit for the financial year SHAREHOLDER S EQUITY IN TOTAL LIABILITIES Non-current Loans from credit institutions Pension loans Advances received Imputed tax liability Non-current liabilities in total Current Loans from credit institutions Pension loans Trade payables Other liabilities Accruals and deferred income Current liabilities in total LIABILITIES IN TOTAL LIABILITIES IN TOTAL

18 Board of Directors FROM LEFT HARRI BROMAN, SANNA SUVANTO-HARSAAE, ANTTI TIITOLA, EERO BROMAN, VÄINÖ H. BROMAN, PETER AHLSTRÖM,, The meetings of the Board of Directors have been inspiring, and we have achieved plenty of good decisions. EERO BROMAN BROMAN GROUP the Chairman of the Board of Directors 18

19 Group Organisation Chart BROMAN GROUP OY KOY Joensuun Jukolankatu 20 MOTONET OY VARAOSA- MAAILMA OY BG VARASTO OY KOY Joensuun Teollisuus-Kansa BG-liikekiinteistöt Oy KOY Helsingin Putkitie 3 MOTONET OÜ (Estonia) AD FIN OY (share of ownership 51. 5%) KOY Kouvolan Tommolankatu 18 Outlets Our network now includes 51 outlets: 29 Motonet and 22 AD VaraosaMaailma outlets, as well as a Motonet online shop. MOTONET 29 OUTLETS AD VARAOSAMAAILMA 22 OUTLETS LOGISTICS CENTRE BROMAN GROUP HEADQUARTERS MOTONET HEADQUARTERS

20 BROMAN GROUP OY POSTAL ADDRESS: P.O. BOX 169, FI JOENSUU VISITING ADDRESS: TULLIPORTINKATU 55, FI JOENSUU TEL: , FAX: