3 months 12 months Setra Group Group Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec.

Transcription

1 Year-End Report 28 SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 1 of 13

2 Year-End Report 28 Consolidated net sales for 28 amounted to SEK 4,88 million (6,59), which is 19% less than the previous year. The reduction is mainly the result of lower prices but also lower volumes. Net sales for the fourth quarter amounted to SEK 994 million (1,379). Operating loss for 28 amounted to SEK -377 million (771). The operating result includes the cost of closing down the Lövholmen sawmill in the amount of SEK 1 million, which was charged to the fourth quarter. The weaker result is mainly an effect of lower selling prices and sustained high raw material costs. The operating loss for the fourth quarter amounted to SEK -23 million (68). The loss after tax for the year was SEK -312 million (528). Earnings per share amounted to SEK (16.72). Cash flow from operating activities for 28 amounted to SEK 15 million (56). The cash flow was improved by a reduction in stock levels during the year by an amount equivalent to SEK 243 million. Cash flow for the fourth quarter amounted to SEK -7 million (-134). n 28 two strategic acquisitions were made to strengthen the company s market position in processed wood products and building systems made from wood: Barkevik Bruk and Plusshus. Production of sawn wood was reduced by 4, m 3 through various measures implemented in 28. This is equivalent to a reduction of the production level of around 2% compared to the previous year. Seskarö sawmill in Haparanda was closed during the second quarter. n November the company decided to enter into co-determination negotiations according to the Swedish Co-Determination Act (MBL) regarding closing down either the Lövholmen sawmill in Piteå or the Malå sawmill. After the end of the year, on 3 February 29, the company decided to conclude these negotiations with the intention to closing down the Lövholmen sawmill. A decision was also taken to enter into co-determination negotiations on the closure of Färila sawmill in Ljusdal. The two restructuring measures combined are estimated to improve the result by around SEK 1 million on an annual basis Setra Group Group Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Net sales, 994 1,379 4,88 6,59 Operating profit/loss, Operating margin, % Profit/loss after tax, Earnings per share, SEK (no dilution) Cash flow from operating activities, Return on operating capital, % (rolling 12 months) Debt/equity ratio, % SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 2 of 13

3 CEO s comments Setra is reporting an operating loss for 28 of SEK -277 million excluding the cost of closing down the Lövholmen sawmill. The negative result is mainly an effect of a deep and sharp fall in the price of sawn wood, which was not accompanied by reductions in the price of wood raw materials. Due to a sustained weak construction market and troubled financial markets, no clear margin improvements can be expected until 21. We therefore believe that 29 will be another tough year and results will be weak. The fall in sawn wood prices continued in the beginning of the new year. Setra has already implemented several comprehensive programmes of measures to improve efficiency and adjust the company s cost structure. The production level on an annual basis is today 25% lower than in autumn 27, when the downturn in the economy started. The adjustment of production levels to the new market conditions has unfortunately also involved around 4 of our employees losing their jobs. The additional restructuring measures we intend to implement the closure of the Lövholmen and Färila sawmills will increase our capacity utilisation and allow us to more effectively use our remaining production units. The measures we have decided upon, combined with those already implemented, will improve Setra s competitiveness and leave us well-equipped even if the recession is a long one. Currently, we do not see the need for further restructuring measures within Setra. Both in the short and the longer term, we still believe that wood as a renewable material will continue to increase its market share in the construction sector. Kent Torwald, President and CEO Market overview, wood products Setra s sales consist primarily of sawn and planed wood products. Most of these products are exported to markets such as Europe, North Africa, the Middle East and Japan. Most of the products Setra manufactures are used directly or indirectly for construction and homes. Developments in the construction market and general economic growth trends are therefore the main drivers of demand for Setra s products. As a consequence of the recession and the financial uncertainty, the wood products market in Europe, which is Setra s main market, continues to weaken. One exception is the markets in North Africa and the Middle East which, with their young and growing populations, continue to grow. The production cuts that have been implemented in the sawmill industry and that are increasingly being implemented in the large producer nations have proved to be insufficient and the stock situation in the fourth quarter worsened to some extent. The temporary stabilisation of prices that could be discerned in the third quarter has ceased, and the price of finished goods continued to fall in the fourth quarter. Net sales by geographic market 28 North Africa/ Middle East 13% Rest of Europe 12% Germany 5% Japan 4% Sweden 44% Model of a residential block called Ekorren in central Skellefteå where Setra has started constructing multi-storey homes and garages made from wood. Denmark 6% Norway 6% UK 1% SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 3 of 13

4 Growth in the European economies has continued to fall and is expected to continue in a negative direction in coming quarters or at best to reach a zero level. The weak construction markets, combined with negative development on the world s financial markets with the resulting reduced supply of working capital and postponed investments, under score the assessment that it will be a while before we see an upswing in the wood products market. The raw materials market Setra s raw materials consist of pine and spruce sawlogs from Swedish forests. Around two thirds consist of pine and one third of spruce. Setra s main raw material suppliers are Sveaskog and Mellanskog. Setra has its own small purchasing operation in the Norrbotten and Västerbotten regions. n the autumn of 28 Setra set up a local purchasing organisation in Vimmerby. The price of sawlogs in the fourth quarter fell cautiously and this trend is expected to continue. Falling price levels have also been noted for raw chips and pulpwood. The previously announced increase in the Russian export duties on roundwood has been delayed and continues to contribute to the uncertainty about the future supply of raw materials. During the year sawlog stocks, which at the beginning of the year were relatively large, gradually diminished and adjusted to a new, lower overall production level. Organisation Per Fredrikson has been appointed as Head of Building Systems and will join Setra s group management team on 1 March 29. The reinforcement of this division is based on the fact that Setra s investment in developing the Trälyftet industrial building system is now entering a commercial phase. n November a decision was taken to integrate Setra Byggprodukter AB with Setra Trävaror AB. The purpose of the integration of these divisions is to coordinate and improve efficiency in sales and distribution to the Swedish building materials trade. The operations of Setra Byggprodukter AB, which until December 28 were reported separately within the Board & Joinery division, will be reported as of 1 January 29 within the Wood Products division. Group net sales The Group s net sales for 28 amounted to SEK 4,88 million (6,59), a reduction of 19% compared to the previous year. The reduction is mainly the result of lower prices but also lower sales volumes. Net sales for the fourth quarter amounted to SEK 994 million (1,379). Setra s goal is to increase the percentage of processed products from 1% in 25 to at least 25% in 29. For 28 processed products made up 18% (17) of the total delivery volume. Group earnings The operating loss for 28 amounted to SEK -377 million (771), which is SEK 1,148 million less than the previous year. The decline is mainly an effect of lower prices and sustained high raw material costs. The operating result for 28 includes costs relating to the closure of the Lövholmen sawmill of SEK 1 million which was charged to the fourth quarter. The operating loss for the fourth quarter was SEK -23 million (68). The operating margin for 28 amounted to -7.7% (12.7). The operating margin for the fourth quarter amounted to SEK -2.4% (4.9). The loss after net financial items for 28 amounted to SEK -432 million (735). Net financial items amounted to SEK -55 million (-36). The loss after net financial items for the fourth quarter amounted to SEK -217 million (6). The loss after tax for 28 amounted to SEK -312 million (528). Tax income amounted to SEK 12 million (-27), which is equivalent to around 28% of the pre-tax profit. Starting in 29 the corporate tax in Sweden will change from 28 to 26.3%. Deferred tax assets and liabilities have been valued according to the new tax rate. Net sales and earnings by division Wood Products Wood Products is Setra s largest division. t produces and sells sawn wood and processed wood products to manufacturers and the building materials trade. Exports make up around 7% of sales. Net sales for 28 amounted to SEK 3,635 million (4,729) or 74% (78) of the Group s total net sales. The total Net sales by division 28 Net sales by by quarter Bioproducts 14% Board & Joinery 6% Building Systems 6% Wood Products 74% 2, 1,5 1, 5 V SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 4 of 13

5 volume of sawn and processed wood products delivered in 28 amounted to 1,885, m 3 (2,77,). Wood products sales continued to develop in a negative direction during the year in most markets in terms of both prices and volumes. The decline in sales has been particularly significant in the markets in the UK and Spain, which are important markets for Setra. Sales to the Middle Eastern and North African markets, on the other hand, have developed well. As part of the focus on the North African market, Setra opened a new sales office in Tunisia s capital Tunis at the beginning of 29. During the year Setra implemented several production reducing measures in order to reduce stock levels, lower costs and improve cash flow. The production of sawn wood has been reduced by just over 4, m 3 as a result of the various measures implemented. This is equivalent to a reduction in the production level of around 2% compared to the previous year. Seskarö sawmill in Haparanda was closed down during the second quarter. n November Setra decided to enter into co-determination negotiations according to the Swedish Co-Determination Act (MBL) on closing either the Lövholmen mill in Piteå or the Malå sawmill. After the end of the year, on 3 February 29, the company decided to conclude these co-determination negotiations with the intention to closing the Lövholmen sawmill. A decision was also taken to enter into co-determination negotiations on the closure of Färila sawmill in Ljusdal. The two restructuring measures combined are estimated to improve results by around SEK 1 million on an annual basis. The closure of the Lövholmen sawmill affects 7 employees and the closure of the Färila sawmill affects 7 employees. The operating loss for Wood Products including Bioproducts for 28 amounted to SEK -35 million (823). The operating result was negatively affected by lower prices and volumes for sawn wood products as well as by sustained high raw material costs. Much of the negative operating result is related to the operations in northern Sweden. The operating result includes the cost of closing down the sawmill in Lövholmen in the amount of SEK 1 million and this amount was charged to the fourth quarter. The operating loss for Wood Products including Bioproducts for the fourth quarter amounted to SEK -19 million (81). Bioproducts The Bioproducts division is responsible for the sale of chips, sawdust, bark and other products generated in connection with sawing and processing. The customers are found in the pulp and paper industry, the energy sector, animal bedding distributors and to some extent horticulture. Net sales for 28 amounted to SEK 69 million (747) or 14% (12) of the Group s net sales. Raw chips, which are sold to the pulp and paper industry, are the most important products in terms of volume and value. Sawdust and bark are mainly sold to the energy sector. The price trend for sawdust and bark for energy use has developed well, although the rate of the price increase has slowed somewhat compared to the last two years. Overall the prices in 28 for bioproducts have increased, but with a lower total production volume of sawn wood, the sales volume of bioproducts has been reduced. The operating result for Bioproducts is reported within the Wood Products division. Board & Joinery The Board & Joinery division buys, sells and distributes board and joinery products to the Swedish building materials trade. November Setra decided to integrate this division, which is operated within Setra Byggprodukter AB, with Setra Trävaror in order to further coordinate and improve efficiency in Setra s sales and distribution to the Swedish building materials trade. The Board & Joinery division will therefore be reported within the Wood Products division from 1 January 29. Net sales for Board & Joinery in 28 amounted to SEK 279 million (45) or 6% (7) of the Group s total net sales. Sales growth for Board & Joinery was weak in the fourth quarter compared to the same period the previous year. Sales were negatively affected by the decline in the construction market. A significant slowdown in demand was noted at the end of the fourth quarter, mainly from building materials Operating profit/ loss by quarter Operating margin by quarter V % V SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 5 of 13

6 customers whose main target group is do-it-yourself customers. The sales volume was also negatively affected by the strategic initiatives that have been under way during the year to streamline the product range and increase the percentage of products imported by Setra. The division s storage and logistics activities have been rendered more efficient during the year and moved to Katrineholm where they have been coordinated with Setra s other distribution to the Swedish building materials trade. The operating loss for Board & Joinery for 28 amounted to SEK -2 million (-4). This includes a capital gain of SEK 1 million relating to a supplementary payment from the sale of Ceos ndustriprodukter in 26. t also includes a net effect of SEK 5 million in the third quarter for the sale of property in Katrineholm and the cost of closing down the storage unit in Skärholmen. The previous year includes costs for the closure of a distribution centre in the amount of SEK -9 million. The operating loss for the fourth quarter amounted to SEK -4 million (5). Building Systems Building Systems is responsible for Setra s construction offering. This comprises construction solutions made from glulam, the Trälyftet building system and industrial production of construction units and modules at Setra s Plusshus factories. Setra Plusshus results are being reported within this division as of January 28. Net sales for 28 amounted to SEK 276 million (133) or 6% (2) of the Group s total net sales. The main markets for glulam are Sweden, Germany and Japan. Sales in the Swedish market have continued to grow to the building materials trade as well as to industry and construction project customers. Exports of glulam were weak during the period from a volume perspective. Due to the downturn on the construction market, there was a sharp decline in deliveries from Setra Plusshus in the fourth quarter. The market launch of Trälyftet, Setra s building system for multi-storey buildings made from wood, is continuing according to plan. n central Skellefteå Setra is constructing homes and garages made from wood in a residential block called Ekorren. The operating profit for Building Systems for 28 amounted to SEK 8 million (-1). The operating loss for the fourth quarter amounted to SEK -1 million (-3). Earnings per share Earnings per share for 28 amounted to SEK (16.72). Earnings per share for the fourth quarter amounted to SEK (1.35). There is no dilution since there are no convertible loans or warrants. nvestments nvestments in property, plant and equipment for 28 amounted to SEK 224 million (129). Larger investments are log sorting in Skinnskatteberg, a new band saw line in Nyby, a paint shop in Kvarnåsen and modernisation of a saw line in Hasselfors. n view of the weak market, the company has decided to postpone the start of the investment in an integrated planing line in Hasselfors. Acquisitions Plusshus n January Setra increased its ownership of the industrial building manufacturer, Plusshus, from 15% to 51%. Plusshus manufactures and sells prefabricated construction units and modules from its own factories in Arvidsjaur and Kristinehamn. The company had annual sales 28 of around SEK 13 million. Setra and Plusshus have had a close and successful partnership for a number of years. This has now been intensified as part of the process of commercialising Trälyftet, Setra s industrial building system for multi-storey buildings made from wood. The subsidiary, renamed Setra Plusshus AB, is part of Setra s Building Systems division. The purchase price paid including a new share issue, amounted to SEK 27 million. The net of identifiable assets and liabilities amounted to SEK 11 million, and goodwill of SEK 16 million is being reported. nvestments by quarter V SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 6 of 13

7 Barkevik Mill n April, following approval by the Norwegian competition authorities, the acquisition of all shares in the Norwegian moulding specialist, Barkevik Bruk AS was concluded. The company, which is one of Norway s leading manufacturers of pine and oak mouldings, has 45 employees. Barkevik s annual sales have doubled over the past three years and amount to SEK 125 million. The company s operations are located in Helgeroa about 15 kilometres south of Oslo. This acquisition strengthens Setra s position on the Norwegian market and expands the offering to the Norwegian building materials trade, both in terms of products and logistics. Setra was already an important supplier for Barkevik before the acquisition, providing high quality pine raw materials for mouldings. The company will continue to be operated by its current management under the new name, Setra Barkevik. The net of identifiable assets and liabilities in the company amounted to SEK 32 million and goodwill of SEK 21 million is being reported. Cash flow, financial position and liquidity The cash flow from operating activities for 28 amounted to SEK 15 million (56) and was positively affected by reduced stock levels. n 28 stock levels were reduced by the equivalent of SEK 243 million. The cash flow for the fourth quarter amounted to SEK -7 million (-134). nterest-bearing net debt on 31 December 28 amounted to SEK 1,94 million (818). The debt/equity ratio on 31 December 28 was 128% (59). The equity ratio on 31 December was 29% (44). As of 31 December 28 the utilised portion of the overdraft facility amounted to SEK 254 million. At the beginning of the year the utilised portion of the overdraft facility was SEK 75 million. The Group s overdraft facility has a limit of SEK 7 million. Personnel The average number of employees for 28 was 1,4 (1,449). The figure for 28 includes around 125 employees from the recently acquired subsidiaries Setra Plusshus and Setra Barkevik. The production cuts and restructuring measures implemented in 28 will have their full effect on the number of employees in 29. Parent Company The Parent Company is mainly involved in group-wide management and administration. The Parent Company s loss after financial items for 28 amounted to SEK -25 million (-16). The Parent Company has not made any investments in intangible assets or property, plant and equipment. The utilised portion of the overdraft facility as of 31 December amounted to SEK 291 million. At the beginning of the year SEK 18 million of the overdraft facility had been utilised. Material risks and uncertainties Due to the nature of its operations, the Group is exposed to both operating and financial risk. The Group s profitability and financial position are mainly affected by development in the construction sector and trends in sawn and planed wood products prices. As a consequence of the high level of stocks among producers and a weak construction market, the wood products market is currently characterised by price pressure and weak profitability. Setra s raw material costs account for around 5% of the operating expenses. The raw material price trends can therefore have a significant impact on earnings. The Group s main financial risk is currency risk, since a significant portion of revenues is invoiced in foreign currencies, mainly EUR and GBP. Currency risk is managed by anticipated flows being hedged through forward contracts. As of 31 December around 71% of Setra s transaction exposure for the subsequent 12-month period was hedged. The Parent Company s risk is primarily of a financial nature and mainly related to management of the Group s currency risk. For a complete account of identified risks and the company s risk management, please refer to the 27 Annual Report. Cash flow from operating activities by quarter Capital structure as of 31 December nterestbearing net debt 56% Shareholders equity 44% -1-2 V SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 7 of 13

8 Related party transactions Apart from transactions with its subsidiaries, the Parent Company has had no transactions with related parties. The Group s significant related party transactions have consisted of transactions with the principal shareholders, Sveaskog and Mellanskog. Most of the Group s sawlog purchases, amounting to around 5% of operating expenses and sales of bioproducts, have taken place through Sveaskog and Mellanskog. Future prospects Due to the sustained weak construction market and troubled financial markets, no clear improvements can be expected to margins before 21. t is therefore our opinion that 29 will be another tough year with weak results. Events after the end of the year After the end of the year, on 3 February 29, the company decided to conclude co-determination negotiations with the intention to closing Lövholmen sawmill. A decision was also taken to enter into co-determination negotiations on the closure of Färila sawmill in Ljusdal. The two restructuring measures combined are estimated to improve results by around SEK 1 million on an annual basis. The cost of closing down the Lövholmen sawmill has been charged to the 28 operating profit in the amount of SEK 1 million. The cost of closing down the Färila sawmill will be charged to the 29 operating profit in the amount of around SEK 75 million. Annual General Meeting 29 The Annual General Meeting will be held on 27 April 29 in Solna. Dividend The Board of Directors proposes no dividend for 28. Accounting principles This interim report for the Group has been prepared in accordance with AS 34 nterim Financial Reporting and for the Parent Company in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board s recommendation RFR 2.1. Accounting for Legal Entities. The accounting principles applied for the Group and the Parent Company are the same as those used in the preparation of the most recent Annual Report. Solna, 3 February 29 The Board of Directors for Setra Group AB (publ), corp. reg. no Hans Karlander Almar Burvall Lars Gabrielsson Chairman of the Board Board member Board member Eva-Britt Gustafsson Lars Holmgren Anna-Greta Lundh Board member Board member Board member Gunnar Olofsson Kenneth Fendinge Karin Pedersen Board member Board member Employee representative Board member Employee representative Gösta Utterström Board member Employee representative Kent Torwald President and CEO This year-end report has not been reviewed by the company s auditors. Contact details Kent Torwald, President and CEO Stefan Lundin, CFO Telephone: Telephone: Mobile: Mobile: kent.torwald@setragroup.se stefan.lundin@setragroup.se Financial calendar 27 April 29 nterim report January March 17 July 29 Half-year report January June 19 October 29 nterim report January September 27 January 21 Year-end report SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 8 of 13

9 Consolidated income statement Oct.-Dec Oct.-Dec Jan.-Dec. Jan.-Dec. Net sales 994 1,379 4,88 6,59 Other operating income ,25 1,391 4,944 6,99 Change in inventories of products in progress and finished products Raw material and consumables Goods for resale Other external costs Personnel costs Depreciation according to plan mpairment Other operating expenses Operating profit/loss Net financial items Profit/loss after financial items Tax Profit/loss for the period Profit/loss attributable to: Equity holders of the Parent Company Minority interests Earnings per share, SEK (no dilution) Net sales and operating profit/loss by division Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Net sales Wood Products 76 1,43 3,635 4,729 Bioproducts Board & Joinery Building Systems ,379 4,88 6, Oct.-Dec. Oct.-Dec. Jan.-Dec. Jan.-Dec. Operating profit/loss Wood Products incl. Bioproducts Board & Joinery Building Systems Shared and Group eliminations Non-recurring items are included in Board & Joinery in the amount of SEK 15 million in the January December 28 period, and in the amount of SEK -9 million in the January December 27 period. n Wood Products incl. Bioproducts, non-recurring items amount to SEK -1 million in the October December 28 and January December 28 periods, and in the amount of SEK -55 million in the October December 27 and January December 27 periods. and annual sales of approximately SEK 5 billion, of which exports to Europe, North Africa, the Middle East and Japan account for about 55% SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 9 of 13

10 Consolidated balance sheet and changes in equity Dec. 31 Dec. Non-current assets Goodwill Other intangible non-current assets 6 9 Property, plant and equipment 1,6 999 Financial assets 5 1 Deferred tax assets Current assets 1,374 1,197 nventories 983 1,194 Trade receivables Other current assets Cash and cash equivalents 14-1,538 1,935 Total assets 2,912 3,132 Equity 857 1,39 Non-current liabilities nterest-bearing liabilities nterest-bearing provisions Deferred tax liability Current liabilities nterest-bearing liabilities Trade payables Other non-interest-bearing liabilities Non-interest-bearing provisions , Total equity and liabilities 2,912 3,132 Pledged assets Contingent liabilities 6 5 Statement of changes in equity Jan.-Dec. Jan.-Dec. Opening equity 1, Changes in hedging reserve Translation differences in equity etc Profit/loss for the period Dividend Acquisition of minority 15-1 Closing equity 857 1,39 The number of shares on 31 December 28 was 31,76,672. The average number of shares corresponds to the number of shares. SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 1 of 13

11 Consolidated cash flow statement Oct.-Dec Oct.-Dec Jan.-Dec. Jan.-Dec. Operating activities Profit/loss after financial items Adjustment for non-cash items, etc Paid tax Cash flow from operating activities before change in working capital Cash flow from change in working capital Change in inventories Change in operating receivables Change in operating liabilities Cash flow from operating activities nvestment activity Acquisition of subsidiaries, net effect on liquidity Purchase of property, plant and equipment and intangible non-current assets Sale of property, plant and equipment Change in financial assets Cash flow from investment activities Financing activities Change in financing liabilities Dividend Cash flow from financing activities Cash flow for the period (Change in cash and cash equivalents) Cash and cash equivalents at beginning of period Exchange difference in cash and cash equivalents Cash and cash equivalents at end of period Change in financial net debt Oct.-Dec Oct.-Dec Jan.-Dec. Jan.-Dec. Opening financial net debt Cash flow Operating activities before change in working capital Change in working capital nvestment activity Dividend Financial net debt in acquired subsidiaries Closing financial net debt -1, , and annual sales of approximately SEK 5 billion, of which exports to Europe, North Africa, the Middle East and Japan account for about 55% SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 11 of 13

12 Quarterly data and key figures for the Group Full year V Full year V Net sales 4, ,124 1,445 1,317 6,59 1,379 1,355 1,76 1,565 Other operating income ,944 1,25 1,137 1,45 1,332 6,99 1,391 1,365 1,767 1,576 Operating costs -5,11-1,12-1,197-1,494-1,29-5,156-1,262-1,19-1,47-1,378 Depreciation and impairment Operating profit/loss Net financial items Profit/loss after financial items Tax Profit/loss for the period Earnings per share, SEK (no dilution) Full year V Full year V Operating margin, % Return on net operating assets, % (rolling 12 months) Return on equity, % (rolling 12 months) Equity ratio, % Debt/equity ratio, % nterest cover, times Neg. Neg. Neg. Neg Operating profit/loss rolling 12 months Operating margin rolling 12 months 1, V V V % V V V Cash flow from operating activities rolling 12 months V V V nvestments rolling 12 months V V V SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 12 of 13

13 Parent Company income statement Oct.-Dec Oct.-Dec Jan.-Dec. Jan.-Dec. Other operating income Other external costs Employee benefit costs Operating profit/loss Net financial items Profit/loss after financial items Tax Profit/loss for the period Parent Company balance sheet Dec. 31 Dec. Non-current assets ntangible non-current assets 2 2 Property, plant and equipment Financial assets Deferred tax assets Current assets Current receivables 1,675 1,73 1,675 1,73 Total assets 1,97 1,755 Equity Provisions Long-term liabilities nterest-bearing liabilities 7 6 Current liabilities nterest-bearing liabilities Other non-interest-bearing liabilities Total equity and liabilities 1,97 1,755 Pledged assets - - Contingent liabilities and annual sales of approximately SEK 5 billion, of which exports to Europe, North Africa, the Middle East and Japan account for about 55% SETRA GROUP AB (publ), Box 327, Solna, Sweden, tel , corp. reg. no Page 13 of 13