Everything to do with our finances. And then some. Report for the first quarter of 2013

Transcription

1 Everything to do with our finances. And then some. Report for the first quarter of 2013

2 Report for the first quarter of 2013 First quarter Net turnover amounted to SEK 4,048 M (4,562). Operating profit amounted to SEK 45 M (77). Net profit for the period was SEK 44 M (50) and earnings per share SEK 1.80 (2.05). Operating cash flow amounted to SEK 90 M (355). The order backlog increased by 34 per cent during the quarter. In a comment on the first says: Demand for new cars and service was on a level with the situation during the fourth quarter. The lower profit compared with last year is attributable to the Car Business and fewer vehicle deliveries. Orders received was, however, on a level with last year, and the order backlog increased during the quarter. The Service Business showed strength by reporting earnings that were slightly better than last year, despite fewer working days during the quarter. We reported a good cash flow, and the Group s financial position is still strong. We believe that demand for cars during the second quarter of 2013 will be on a par with, or slightly better than, the level during the same quarter last year. Demand for service is expected to be better than last year. First quarter April 12 - Full year Group March Net turnover, SEK M 4,048 4,562 17,148 17,662 Operating profit excl. items affecting comparability, SEK M 1) Operating margin excl. items affecting comparability, % Operating profit, SEK M Operating margin, % Profit before tax excl. items affecting comparability, SEK M 1) Profit before tax, SEK M Net profit for the period / year, SEK M Earnings/loss per share, SEK 2) ) Items affecting comparability are shown in the table on page 3. 2) The number of shares used in the calculation is shown in the table on page 10. Interim report Bilia AB 1 January 31 March (16)

3 Notable events during 2013 During the year up to and including the 30th of April, 12,970 warrants were exercised to subscribe for new shares, resulting in a new issue of SEK 0.3 M. The number of outstanding warrants at 30 April was 332,186. Bilia in Norway acquired Kverneland s operation in Drammen. At the same time, Kverneland acquired Bilia s operation in Bryne. The net purchase consideration amounted to around SEK 15 M. Kverneland s operation in Drammen reported a turnover of about SEK 225 M in 2012, while the turnover in Bilia s operation in Bryne amounted to about SEK 115 M. The deal was consummated on the 1st of April. Further information on the above events and other press information is available at First quarter 2013 Demand for cars and service was on a level with both the same quarter last year and with the fourth quarter. Net turnover amounted to SEK 4,048 (4,562). For comparable operations and adjusted for exchange rate changes, net turnover decreased by about SEK 480 M or 11 per cent. The decrease is mainly attributable to lower sales of new cars. Operating profit amounted to SEK 45 M (77). The decrease is mainly attributable to fewer deliveries of new cars. Orders received for new cars was on a par with last year and higher compared with deliveries, resulting in an increase in the order backlog during the quarter. The Service Business reported slightly better earnings compared with last year, despite the fact that the quarter contained fewer working days. Underlying overheads decreased by 2 per cent compared with last year and amounted to 14.7 per cent of net turnover, which was 1.3 percentage points higher compared with last year. Net financial items amounted to SEK 9 M (-4). The improvement is attributable to higher earnings from associated companies, SEK 19 M (5). A change in the Swedish income tax rate to 22 per cent explains the higher earnings from associated companies. Tax for the period amounted to SEK -10 M (-23). The tax corresponds to a tax rate of 29 per cent (34) if the tax-free portion of the earnings of the associated companies is excluded. No tax asset has been recognised for the year s deficit in Denmark. Profit for the period was SEK 44 M (50) and earnings per share SEK 1.80 (2.05). Exchange rate changes affected the profit marginally. Total assets decreased during the quarter by SEK 410 M to SEK 5,432 M. The decrease is mainly attributable to lower stocks of new and used cars and lower trade receivables. Equity increased during the quarter by SEK 29 M, amounting to SEK 1,615 M. Translation differences attributable to foreign operations reduced equity by SEK 15 M (increase: 2). The equity/assets ratio amounted to 30 per cent (30). Acquisition of non-current assets amounted to SEK 33 M (46). Replacement investments represented SEK 12 M (11), expansion investments SEK 6 M (4), environmental investments SEK 0 M (0) and investments in new construction and additions to properties SEK 11 M (29), while finance leases amounted to SEK 4 M (2). Operating cash flow amounted to SEK 90 M (355). After acquisition of operations and change in interest-bearing receivables, cash flow amounted to SEK 99 M (159). Net debt decreased by SEK 88 M during the quarter, amounting to SEK 482 M. Interim report Bilia AB 1 January 31 March (16)

4 Liquidity remains good, and at the end of March a positive bank balance of SEK 34 M was reported. The combined credit limit with Nordea and DNB amounts to SEK 900 M. The number of employees declined by 17 during the quarter to 3,414 persons. Items affecting comparability First quarter April 12 - Full year Group, SEK M March Operating profit excl. items affecting comparability Items affecting comparability - Gain from sale of operation, other Structural costs etc Operating profit Profit before tax excl. items affecting comparability Items affecting comparability - Gain from sale of operation, other Structural costs etc Profit before tax Interim report Bilia AB 1 January 31 March (16)

5 Group Deliveries Order backlog No. of new First quarter April 12 - Full year 31 March cars March Sweden 5,209 5,990 22,948 23,729 4,460 3,933 Norway 1,527 2,010 7,127 7,610 1,439 1,421 Denmark ,214 3, Total 7,441 8,708 33,289 34,556 6,567 5,891 Net turnover Operating profit/loss excl. items affecting comparability, operating margin First quarter April 12 - Full year First quarter April 12 - Full year SEK M March % 2012 % March % Sweden 2,683 2,813 11,006 11, Norway 1,171 1,456 5,118 5, Denmark ,022 1, Total Cars 4,047 4,561 17,146 17, Parent Company, other Total 4,048 4,562 17,148 17, Weak earnings in Norway Order backlog increased during the quarter The market for new cars shrank during the quarter by 18 per cent in Sweden and 3 per cent in Norway, while it increased by 6 per cent in Denmark. The Group reported an operating profit, excluding items affecting comparability, of SEK 45 M (77) and an operating margin of 1.1 percent (1.7). The earnings decrease is attributable to fewer deliveries of new cars. The Car Business reported a loss of SEK 13 M, which was SEK 33 M worse than last year. The order backlog increased by 1,684 cars during the quarter, amounting to 6,567 cars at the end of March. The operation in Sweden reported an operating profit of SEK 52 M (62). The Car Business reported a profit that was SEK 13 M worse than last year. The poorer profit is attributable to fewer deliveries of new cars. The Service Business reported unchanged earnings compared with last year, despite the fact that the quarter contained two fewer working days than the same quarter last year. Operating profit in Bilia s Norwegian operation amounted to SEK 14 M (39). The Car Business reported a profit that was SEK 20 M worse than last year. The poorer profit is attributable to fewer deliveries of new cars, and turnover declined by all of 33 per cent compared with last year. The Service Business reported a profit that was SEK 5 M worse than last year, due to the fact that the quarter contained fewer working days. The Danish operation reported an operating loss of SEK 8 M (loss: 14). The improvement compared with last year is attributable to the Service Business. Demands for workshop services continued to be weak, and turnover declined by 23 per cent while overheads were reduced by 33 per cent. The Car Business reported unchanged earnings compared with last year. Altogether, overheads in the Danish operation decreased by SEK 15 M or 24 per cent compared with last year. Interim report Bilia AB 1 January 31 March (16)

6 Cars divided into Service, Car and Fuel Businesses Net turnover 1) Operating profit, operating margin First quarter April 12 - Full year First quarter April 12 - Full year SEK M March March Service Business 984 1,030 3,914 3, margin, % Car Business 2,979 3,435 12,777 13, margin, % Fuel Business ,162 1, margin, % Service includes workshop services, spare parts and accessories in the car operation. The Car Business includes sales of new and used cars and customer financing. 1) Net turnover does not include eliminations for internal sales. Better earnings in the Service Business Fewer deliveries affected the Car Business The Service Business s sales for comparable operations and adjusted for exchange rate changes decreased by about 4 per cent. Sales in Norway declined by 6 per cent and in Denmark by 23 per cent, while turnover in Sweden was unchanged. The quarter contained two fewer working days in Sweden and four fewer in Norway and Denmark. This calendar effect accounts for a decline in turnover of about 4 per cent. Adjusted for this, the Group s turnover was unchanged compared with last year. Despite the lower turnover, the profit was slightly better compared with last year due to lower overheads. The Car Business s deliveries of new cars declined during the quarter for comparable operations by 15 per cent and deliveries of used cars by 3 per cent. Orders received for new cars was also at a slightly lower level than last year, -1 per cent, but considerably higher compared with the quarter s deliveries. The order backlog increased by 1,684 cars during the quarter, amounting to 6,567 cars at the end of March (5,891). The used car business reported a profit for the quarter that was marginally better compared with last year. Stocks of new unsold cars and used cars decreased during the quarter and are at good levels. The turnover rate for used cars remains at a high level, nearly 10 times per year. The Fuel Business is concentrated to Sweden, and earnings improved by SEK 3 M to SEK 6 M. The improvement is attributable to a higher gross profit margin. Service Business: Operating profit Car Business: Operating profit SEK M Operating profit, SEK M Operating margin, % % SEK M Operating profit, SEK M Operating margin, % % Q 2 Q 3 Q 4 Q1 Q 2 Q 3 Q 4 Q Q 2 Q 3 Q 4 Q1 Q 2 Q 3 Q 4 Q All values in the above graphs pertain to isolated quarters. Interim report Bilia AB 1 January 31 March (16)

7 Parent Company public relations and business development. Furthermore, Bilia AB conducts training, real estate and IT activities, mainly for companies in the Group. first quarter amounted to SEK 15 M (loss: 10). The increase in loss is mainly attributable to higher provisions for special payroll tax linked to value increases on endowment policies. The figure also includes a cost of SEK 1 M attributable to the sale of the Danish properties in No cost arose in the Group, since the amount had been set aside. Risks and uncertainties As a result of its operations, the Bilia Group is exposed to both operating risks and financial risks. The operating risks include: Development of the market for new cars. The economic turbulence in the world may reduce demand for new cars. Diminished demand for cars can also affect the value of stock in hand and guaranteed residual values. Reduced demand for service and repairs. Increased competition in the markets where Bilia is active. The ability of suppliers to offer competitive products. Automotive suppliers become insolvent or terminate retailer agreements with Bilia. Regulatory decisions that lead to changes in taxes and charges on the products Bilia sells can influence both demand for and the valuation of cars in stock and cars sold with guaranteed residual values. The financial risks include liquidity risks, interest rate risks, credit risks and currency risks. Bilia works continuously with risk identification and risk assessment. For further information about the risks that affect the Group, please refer to the 2012 Annual Report. Accounting principles This interim report in summary for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, Interim Reports. The same accounting policies and calculation methods have been applied for the Group and the Parent Company as in the most recent annual report, with the following exceptions. The revised IAS 19 Employee benefits applies as from 1 January As a result of the change, the corridor method is no longer applied. Actuarial gains and losses are recognised in Other comprehensive income with cumulative effect in equity. Return on plan assets is based on the discount rate used to calculate the pension liability and is included in the net profit for the year. The difference between real and calculated return on plan assets is recognised in other comprehensive income. This change entails a change in accounting policy for Bilia. Changes in accounting policies are applied retrospectively, which means that the 2012 figures have been recalculated in the report for the first quarter of Interim report Bilia AB 1 January 31 March (16)

8 Interest-bearing liabilities for the full year 2012 have increased by SEK 175 M, and the effect on equity of previously unrecognised actuarial losses, after special payroll tax and deferred tax have been taken into account, amounts to SEK 167 M, consisting of a reduction in the opening value as of 1 January 2012 by SEK 177 M and a positive earnings effect of SEK 10 M. Events after the end of the report period No significant events have occurred after the end of the report period. Audit This interim report has not been subjected to special examination by the auditors. Next report The interim report for the second quarter of 2013 will be published on 25 July 2013 at 8:30 a.m.. Gothenburg, 3 May 2013 Bilia AB (publ) Board of Directors For further information, please contact Per Avander, Managing Director and CEO, or Gunnar Blomkvist, CFO, telephone Bilia AB (publ) Box 9003, SE Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: Corporate ID No.: This report is being published by Bilia AB in compliance with the Securities Market Act. The information was submitted for publication on 3 May 2013 at 11:00. Interim report Bilia AB 1 January 31 March (16)

9 First quarter Service Car Fuel Total Segment Group Cars reconciliation SEK M Net turnover External sales ,979 3, ,047 4, ,048 4,562 Internal sales Total net turnover 984 1,030 2,979 3, ,228 4, ,048 4,562 Depreciation/amortisation Operating profit/loss Interest income 3 3 Interest expenses Shares in profits of associated companies Profit before tax Tax expense for the period Net profit for the period Material items of income and expense of a non-recurring nature recognised in the Income Statement: Items affecting comparability Items of non-recurring nature Material items not affecting cash besides depreciation/amortisation: - Other Total Assets Interests in associated companies Deferred tax assets Other assets 5,022 5,426 Total assets ,432 5,876 Investments in non-current assets Liabilities Equity 1,615 1,751 Liabilities 3,817 4,125 Total liabilities and equity 5,432 5,876 Revenue from Non-current external customers assets SEK M Geographical segments Sweden 2,684 2,814 2,681 2,715 Norway 1,171 1, Denmark Segment reconciliation Total 4,048 4,562 2,581 2,620 Interim report Bilia AB 1 January 31 March (16)

10 Group's operating segments con'd. First quarter Service Car Sweden Norway Denmark Sweden Norway Denmark SEK M Net turnover External sales ,872 1, , Internal sales Total net turnover ,872 1, , Depreciation/amortisation Operating profit/loss Shares in profits of associated companies 19 5 Material items of income and expense of a non-recurring nature recognised in the Income Statement: Items affecting comparability Items of non-recurring nature Material items not affecting cash besides depreciation/amortisation: - Other Total Assets Interests in associated companies Investments in non-current assets Interim report Bilia AB 1 January 31 March (16)

11 Consolidated Statement of Comprehensive Income and Other Comprehensive Income First quarter April 12 - Full year SEK M March Net turnover 4,048 4,562 17,148 17,662 Costs of goods sold 3,413 3,874 14,488 14,949 Gross profit ,660 2,713 Other operating income Selling expenses ,938 1,964 Administrative expenses Other operating expenses Operating profit 1) Financial income Financial expenses Shares in profits of associated companies Net financial items Profit before tax Tax Net profit for the period Other comprehensive income/loss Items that cannot be reclassified to profit or loss Revaluation of defined-benefit pension plans Tax attributable to items that cannot be reclassified to profit or loss Items that can be reclassified to profit or loss Translation differences attributable to foreign operations Tax attributable to items that have been or may be reclassified to profit or loss Other comprehensive income/loss after tax Comprehensive income for the period Net profit for the year attributable to: Parent Company's shareholders Comprehensive income for the year attributable to: Parent Company's shareholders Number of shares at end of period, '000: - before dilution 24,667 25,089 24,667 24,658 - after dilution 25,003 25,459 25,003 25,003 Basic earnings/loss per share, SEK Diluted earnings/loss per share, SEK Number of own shares at end of period, ' Weighted average number of shares, '000: - before dilution 24,663 24,750 24,726 24,748 - after dilution 25,003 25,125 25,075 25,106 Basic earnings/loss per share, SEK Diluted earnings/loss per share, SEK Weighted average number of own shares, ' ) Straight-line amortisation/depreciation by asset class: - Intellectual property Land and buildings Equipment, tools, fixtures and fittings Leased vehicles Total Interim report Bilia AB 1 January 31 March (16)

12 Consolidated Statement of Financial Position, Summary SEK M 31/ / / Assets Non-current assets Intangible assets Intellectual property Goodwill Property, plant and equipment Land and buildings Construction in progress Equipment, tools, fixtures and fittings Leased vehicles 1) 1,275 1,339 1,353 1,706 1,768 1,764 Long-term investments Financial investments Non-current receivables 2) Deferred tax assets Total non-current assets 2,655 2,727 2,753 Current assets Inventories, merchandise 1,844 2,084 2,109 Current receivables Other receivables 1) Cash and cash equivalents 2) Total current assets 2,777 3,115 3,123 Total assets 5,432 5,842 5,876 Equity and liabilities Equity Share capital Other contributed capital Reserves Retained earnings including net profit for the year 1,354 1,310 1,476 Total equity 1,615 1,586 1,751 Non-current liabilities Debenture loan 3) Interest-bearing liabilities 3) Other liabilities and provisions 4) 1,365 1,390 1,513 1,474 1,515 1,649 Current liabilities Interest-bearing liabilities 3) Other liabilities and provisions 2,213 2,542 2,383 2,343 2,741 2,476 Total equity and liabilities 5,432 5,842 5,876 Assets 1) Of which interest-bearing ) Interest-bearing Liabilities 3) Interest-bearing ) Of which interest-bearing Interim report Bilia AB 1 January 31 March (16)

13 Statement of Changes in Group Equity, Summary SEK M 31/ / / Opening balance 1,586 1,813 1,813 Effect of change of accounting policy, IAS Adjusted opening balance 1,586 1,636 1,636 Cash dividend to shareholders Exercised warrants Acquisitions with own shares Buy-back of own shares Comprehensive income for the period Closing balance 1,615 1,586 1,751 Consolidated Statement of Cash Flows First quarter April 12 - Full year SEK M March Operating activities Profit before tax Depreciation/amortisation and impairment losses Other items not affecting cash Tax paid Change in inventories Change in operating receivables Change in operating liabilities Cash flow from operating activities Investing activities Acquisitions of non-current assets (intangible and property, plant and equipment) Disposal of non-current assets (intangible and property, plant and equipment) Acquisitions and disposals of leased vehicles Operating cash flow Acquisition of financial assets Disposal of financial assets Acquisition of subsidiary/operation, net Disposal of subsidiary/operation, net Cash flow after net investments Financing activities Borrowings Repayment of loans Change in overdraft facility Exercised warrants Acquisitions with own shares Buy-back of own shares Dividend paid to Parent Company's shareholders Cash flow from financing activities Change in cash and cash equivalents, excl. translation differences Exchange difference in cash and cash equivalents Change in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period Interim report Bilia AB 1 January 31 March (16)

14 Fair value of financial instruments The carrying amount of financial instruments corresponds to the fair value, with the exception of debenture loans. The fair value of debenture loans amounts to SEK 29 M. Fair value is determined on the basis of the following three levels: Level 1: according to prices quoted on an active market for the same instrument. Level 2: based on directly or indirectly observable market inputs other than those included in level 1. Level 3: according to inputs not based on observable market data. Currency derivatives that belong to financial assets measured at fair value through profit or loss amounting to SEK 3 M, and those that belong to financial liabilities measured at fair value through profit or loss amounting to SEK 1 M, belong to valuation level 2. Calculation of fair value The fair value of currency derivatives is determined on the basis of market rates. If such rates are not available, the fair value is calculated by discounting the difference between the contracted forward rate and the forward rate that can be obtained on the balance sheet date for the remaining contract period. Interim report Bilia AB 1 January 31 March (16)

15 Quarterly review Group 2/11 3/11 4/11 1/12 2/12 3/12 3/12 1/13 Net turnover, SEK M 4,857 4,179 4,780 4,562 4,742 3,824 4,534 4,048 Operating profit excl. items affecting comparability, SEK M Operating margin excl. items affecting comparability, % Operating profit, SEK M Operating margin, % Profit before tax, SEK M Profit/loss for the period, SEK M Rate of capital turnover, times 1) Return on capital employed, % 1) Return on equity, % 1) Net debt/equity, times Equity/assets ratio, % Interest coverage ratio, times 1) Data per share (SEK) Earnings/loss for the period ) ) ) ) ) ) ) ) Equity 68 3) 70 5) 74 7) 70 9) 61 11) 61 13) 64 15) 65 17) Operating cash flow ) ) ) ) ) ) ) ) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) Rolling 12 months. Based on weighted average number of shares outstanding during second quarter, 25,057,224. Based on number of shares outstanding at 30 June 2011, 25,067,346. Based on weighted average number of shares outstanding during third quarter, 24,924,440. Based on number of shares outstanding at 30 September 2011, 24,559,147. Based on weighted average number of shares outstanding during fourth quarter, 24,563,301. Based on number of shares outstanding at 31 December 2011, 24,565,028. Based on weighted average number of shares outstanding during first quarter, 24,749,835. Based on number of shares outstanding at 31 March 2012, 25,089,165. Based on weighted average number of shares outstanding during second quarter, 25,013,960. Based on number of shares outstanding at 30 June 2012, 24,752,901. Based on weighted average number of shares outstanding during third quarter, 24,663,161. Based on number of shares outstanding at 30 September 2012, 24,546,644. Based on weighted average number of shares outstanding during fourth quarter, 24,566,868. Based on number of shares outstanding at 31 December 2012, 24,657,606. Based on weighted average number of shares outstanding during first quarter, 24,662,698. Based on number of shares outstanding at 31 March 2013, 24,667,096. Interim report Bilia AB 1 January 31 March (16)

16 Income Statement for Parent Company First quarter April 12 - Full year SEK M March Net turnover Administrative expenses Operating loss 1) Result from financial items Income from interests in Group companies Interest income from Group companies Other interest income and similar line items Interest expenses to Group companies Interest expenses and similar line items Profit after financial items Appropriations Profit before tax Tax Net profit for the period ) Straight-line amortisation/depreciation by asset class: - Intellectual property Equipment, tools, fixtures and fittings Total Interim report Bilia AB 1 January 31 March (16)

17 Balance Sheet for Parent Company, Summary SEK M 31/ / / Assets Non-current assets Intangible assets Intellectual property Property, plant and equipment Buildings Construction in progress Equipment, tools, fixtures and fittings Long-term investments Interests in Group companies Other securities held as non-current assets Other non-current receivables Deferred tax asset Total non-current assets Current assets Current receivables Receivables from Group companies Other receivables Cash and bank balances Total current assets Total assets 1,506 1,636 1,623 Equity and liabilities Equity Restricted equity Share capital Statutory reserve Non-restricted equity Share premium reserve Retained earnings including net profit for the year Total equity 1,101 1,110 1,274 Untaxed reserves Provisions Provisions for pensions and similar obligations Deferred tax liability Non-current liabilities Debenture loan Other liabilities Current liabilities Liabilities to credit institutes Liabilities to Group companies Other liabilities Total equity and liabilities 1,506 1,636 1,623 Pledged assets and contingent liabilities for Parent Company Pledged assets Contingent liabilities 1,051 1,153 1,019 Interim report Bilia AB 1 January 31 March (16)