Year-end report 2017 Bilia AB (publ) 1 (20)

Transcription

1

2 Net turnover amounted to SEK 27,492 M (23,306). Operational earnings amounted to SEK 1,006 M (887). Net profit for the year was SEK 691 M (636) and earnings per share SEK 6.75 (6.20). Operating cash flow amounted to SEK 355 M (464). The Board of Directors proposes a regular dividend of SEK 4.50 (4.00). Net turnover amounted to SEK 7,186 M (6,297). Operational earnings amounted to SEK 278 M (265). Net profit for the period was SEK 184 M (173) and earnings per share SEK 1.80 (1.65). Operating cash flow amounted to SEK 53 M (-267). In a comment on the fourth quarter, Bilia s Managing Director Per Avander says: "Demand for service was slightly better and demand for cars was on a level with last year. Once again, we reported better earnings compared with last year. The improvement was attributable to the Service Business, which showed continued rapid growth and an improved margin. The Car Business reported a lower profit, which was attributable to sales of used cars. The order backlog of new cars remains at a good level. Operating cash flow was strong for a fourth quarter and our financial situation is good. We expect that demand for cars will be slightly lower during the first quarter of 2018, while demand for service will be slightly better compared with the same quarter last year. Fourth quarter Full year Continuing operations Net turnover, SEK M 7,186 6,297 27,492 23,906 Operational earnings, SEK M 1) , Operational margin, % Operating profit, SEK M Operating margin, % Profit before tax, SEK M Net profit for the period/year, SEK M Earnings per share, SEK 2) The Bilia Group Loss from discontinued operation, net after tax (Denmark) Net profit for the period/year, SEK M Earnings per share, SEK 2) ) For reconciliation of operational earnings with operating profit, see the table on page 5. 2) The number of shares used in the calculation is shown in the table on page 13. See "Definitions and performance measures" on page 19. Year-end report 2017 Bilia AB (publ) 1 (20)

3 Events after the end of the report period No significant events have occurred after the end of the report period. Fourth quarter Bilia s Board of Directors resolved to buy back the company s own shares. The maximum number of shares was 625,000 and the share buy-backs began on 2 November The buy-backs were concluded during the fourth quarter. 625,000 shares were repurchased at an average price of SEK Events earlier during the year In January, Bilia issued unsecured bonds worth SEK 250 M. The bond issue carries a floating interest rate of STIBOR (3 months) plus 140 basis points and has a final maturity date in March On 7 March 2017, Bilia acquired an auto salvage business, Allbildelar Försäljning i Huddinge AB, plus a property company that owns the building in which the business is conducted. The 2017 Annual General Meeting resolved to split the company s outstanding shares. Due to the stock split, the calculation of basic and diluted earnings per share has been adjusted retroactively for the reported periods. On 1 June 2017, Bilia acquired Wölkes Bil AB, which operates a service and repair business for BMW and MINI cars in Gothenburg. Kristina Franzén was appointed the new CFO of Bilia and assumed office on 1 August Eva Cederbalk decided to leave her seat on Bilia s Board of Directors before the end of her term to accept a position at a bank. Bilia s Board of Directors resolved to buy back the company s own shares. The maximum number of shares was 1,250,000 and the share buy-backs began on 8 August The buy-backs were concluded during the third quarter. 1,224,000 shares were repurchased at an average price of SEK 82. Departing CFO Gunnar Blomkvist was elected as a member of Bilia s Board of Directors at the extraordinary shareholders meeting of 4 September Bilia signed a new lease agreement with Fabege for a new, ultramodern full-service facility to house its operation at Haga Norra, Solna, just north of Stockholm. The lease agreement covers a term of 20 years, with an option for Bilia to terminate after 15 years. Bilia concluded an agreement to acquire Bilsalongen AS, a BMW and MINI dealer in Norway. The planned date of possession is 1 January Bilsalongen s turnover in 2016 amounted to about SEK 340 M, with an operating margin of 2.3 per cent. Bilsalongen s capital employed, plus agreed-on surplus values, amounts to about SEK 55 M. Further information on the above events and other press information is available at bilia.com. Demand for cars was on a par with the same quarter last year, while demand for service was slightly better. Net turnover amounted to SEK 7,186 M (6,297). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 785 M or about 12 per cent. Year-end report 2017 Bilia AB (publ) 2 (20)

4 Operating profit amounted to SEK 258 M (252). Adjusted for revenue and costs that affect comparability, operational earnings amounted to SEK 278 M (265). The improvement was attributable to the Service Business, which increased its operational earnings by SEK 24 M despite one less working day during the quarter compared with last year. The Car Business reported lower earnings compared with last year, which was attributable to sales of used cars. Underlying Group overheads increased by about 5 per cent compared with last year. Overheads amounted to 13.0 per cent in relation to net turnover, which was 0.7 percentage point lower compared with last year. In recognition of the earnings level and customer satisfaction during the quarter, provision was made for employee bonuses in Sweden of SEK 3 M (4). Net financial items amounted to SEK -6 M (-5). The decrease is attributable to higher net debt and a higher average interest rate. Tax for the period amounted to SEK -68 M (-53), and the effective tax rate was 27 per cent (21). Net profit for the period amounted to SEK 184 M (173) and earnings per share to SEK 1.80 (1.65). Exchange rate changes did not have any significant effect on earnings. Total assets increased by SEK 431 M during the quarter, amounted to SEK 10,958 M. Equity increased by SEK 134 M during the quarter, amounted to SEK 2,620 M. 625,000 Bilia shares were repurchased during the quarter at an average price of SEK per share, amounted to a total purchase consideration of SEK 47 M. The equity/assets ratio amounted to 24 per cent (25). Acquisition of non-current assets amounted to SEK 80 M (66). Replacement investments represented SEK 14 M (5), expansion investments SEK 25 M (14), environmental investments SEK 2 M (0) and investments in new construction and additions to properties SEK 30 M (38), while finance leases amounted to SEK 9 M (9). Operating cash flow amounted to SEK 53 M (-267). After acquisitions and disposals of operations and change in financial assets, cash flow amounted to SEK 53 M (-269). Net debt decreased by SEK 16 M during the quarter, amounted to SEK 1,282 M. Specification of interest-bearing net debt/receivable SEK M 31/ / Current interest-bearing liabilities Non-current interest-bearing liabilities 1, Pension liabilities - 3 Cash and cash equivalents Interest-bearing assets 0-1 Interests in associated companies Non-current leased assets 0 0 Net debt(+) / receivable(-) at end of year / period 1, Ratio of net debt to EBITDA SEK M 31/ / Operational earnings 1, Total depreciation/amortisation amortisation of surplus values depreciation of leased vehicles with repurchase agreements Depreciation/amortisation added back EBITDA 1,228 1,070 The ratio of net debt to EBITDA rolling 12 months, times See "Definitions and performance measures" on page 19. Year-end report 2017 Bilia AB (publ) 3 (20)

5 Liquidity remains good, and at the end of December a positive bank balance (in Nordea and DNB) of SEK 107 M was reported. Repurchases of own shares during the fourth quarter amounted to SEK 47 M. Bilia s combined credit limit with Nordea and DNB amounts to SEK 1,500 M. The number of employees increased by 155 during the quarter and amounted to 4,708 persons. Demand for cars and service was slightly better than last year. Net turnover amounted to SEK 27,492 M (23,906). For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 1,825 M or 8 per cent. Operating profit amounted to SEK 923 M (841). Adjusted for revenue and costs that affect comparability, operational earnings amounted to SEK 1,006 M (887). The improvement was mainly attributable to the Service Business, which boosted operational earnings by SEK 104 M. The Car Business reported a profit that was SEK 9 M higher than last year. Sales of new cars showed improved earnings, while sales of used cars reported lower earnings. Underlying Group overheads increased by just under 4 per cent compared with last year. Overheads amounted to 12.4 per cent in relation to net turnover, which was 0.2 percentage point lower compared with last year. In recognition of the earnings level and customer satisfaction during the year, provision was made for employee bonuses in Sweden of SEK 20 M (19). Net financial items amounted to SEK -27 M (-8). The decrease is attributable to higher net debt and a higher average interest rate. Tax for the year amounted to SEK -205 M (-176), and the effective tax rate was 23 per cent (21). Net profit for the year was SEK 691 M (636) and earnings per share SEK 6.75 (6.20). Exchange rate changes did not have any significant effect on earnings. Total assets increased by SEK 826 M during the year, amounted to SEK 10,958 M. Equity increased by SEK 109 M during the year, amounted to SEK 2,620 M. 1,849,000 Bilia shares were repurchased during the year at an average price of SEK per share, amounted to a total purchase consideration of SEK 147 M. The equity/assets ratio amounted to 24 per cent (25). Bilia s financial goals were fulfilled as follows: Operating margin 3.4 per cent (goal 2.5) Return on capital employed 23.4 per cent (goal 17.0) Return on equity 27.0 per cent (goal 18.0) Ratio of net debt to EBITDA 1.0 times (goal not over 2.0) Growth 15.0 per cent (goal 5-10) Acquisition of non-current assets amounted to SEK 331 M (268). Replacement investments represented SEK 56 M (75), expansion investments SEK 85 M (50), environmental investments SEK 4 M (2) and investments in new construction and additions to properties SEK 151 M (112), while finance leases amounted to SEK 35 M (29). Operating cash flow amounted to SEK 355 M (464). After acquisitions and disposals of operations and change in financial assets, cash flow amounted to SEK 74 M (317). Net debt increased by SEK 507 M during the first six months, amounted to SEK 1,282 M. The number of employees increased by 381 during the quarter, amounted to 4,708 persons. Acquisitions of operations have increased the number of employees by 185. Year-end report 2017 Bilia AB (publ) 4 (20)

6 Fourth quarter Full year Group, SEK M Operational earnings , Gain from sale of operation Redemption of pension liability Structural costs etc Acquisition-related costs and value adjustments Amortisation of surplus values Operating profit See "Definitions and performance measures" on page 19. Gain from sale of operation during 2017 pertains to the sale of the Ford operation in Stockholm. Structural costs during 2017 pertain mainly to the estimated cost of winding up the remaining Ford operation in Sweden and Norway. Acquisition-related costs and value adjustments pertain to costs for the acquisition of operations and properties in Sweden. Year-end report 2017 Bilia AB (publ) 5 (20)

7 Deliveries Order backlog No. of new cars per region Fourth quarter Full year Dec Sweden 1) 8,980 9,176 36,853 34,896 7,715 8,032 Norway 2,802 2,605 9,940 9,097 2,792 2,278 Western Europe 2) 1,535 1,510 6,103 3, ,017 Total 13,317 13,291 52,896 47,992 11,495 11,327 1) MW Group is included in deliveries during the quarter with 629 (-) and during the year with 2,611 (-) and with 227 (-) in order backlog. 2) Schäfer, Germany is included in deliveries during the year with 690 (355). Luxembourg is included in deliveries during the year with 2,711 (1,926). Belgium is included in deliveries during the year with 1,770 (822). Net turnover Operational earnings, margin Fourth quarter Full year Fourth quarter Full year Regions, SEK M % 2016 % 2017 % 2016 % Sweden 4,423 4,015 17,235 15, Norway 2,051 1,645 7,324 6, Western Europe ,923 1, Total 7,182 6,294 27,482 23, , Parent Company, other Total 7,186 6,297 27,492 23, , See "Definitions and performance measures" on page 19. Strong earnings in all regions Margins exceeded our financial goal in all regions The market for new cars decreased during the fourth quarter by 1 per cent in Sweden, while it increased by 9 per cent in Norway and 3 per cent in Western Europe. The Group reported operational earnings of SEK 278 M (265) and an operational margin of 3.9 per cent (4.2). There was one less working day in the fourth quarter compared with last year, which mainly affected the Service Business, which nevertheless reported SEK 24 M more in earnings. Earnings for the Car Business decreased by SEK 10 M, while they increased by SEK 1 M for the Fuel Business compared with last year. The order backlog increased by 54 cars during the quarter, amounted to 11,495 cars. The operation in Sweden reported earnings of SEK 213 M (223), with a margin of 4.8 per cent (5.6). Underlying turnover in the Service Business increased by 6.1 per cent and earnings improved by SEK 27 M compared with last year. The number of mechanics increased also during the fourth quarter, but we still need to hire more mechanics. The Car Business reported lower earnings compared with last year, which was above all attributable to sales of used cars. Sales of used cars reported a loss of SEK 14 M (profit: 7). The poorer result was mainly attributable to the valuation of the car stocks. The turnover rate for used cars remains at a high level. Earnings in Bilia s Norwegian operation amounted to SEK 67 M (51), with a margin of 3.3 per cent (3.1). The Car Business reported earnings that were SEK 26 M better than last year, attributable to sales of new cars. Sales of used cars showed a loss of SEK 5 M (profit: 5). The poorer result was mainly attributable to the valuation of the car stocks. Stocks of used cars increased compared with the previous quarter. The Service Business reported lower earnings, due to the fact that there was one less working day in the fourth quarter compared with last year. The operation in Western Europe reported a profit of SEK 24 M (15), with a margin of 3.3 per cent (2.4). Both the Car and Service Businesses reported improved earnings compared with last year. Profit in the Car Business was SEK 6 M (4) for the quarter, and the Service Business showed a profit of SEK 18 M (11). The operations in Luxembourg and Belgium continued to develop positively, while Germany faces a challenge in downward price pressure on new cars in the market. Year-end report 2017 Bilia AB (publ) 6 (20)

8 Net turnover 1) Operational earnings, margin Fourth quarter Full year Fourth quarter Full year SEK M Service Business 1,695 1,564 5,998 5, margin, % Car Business 5,575 4,783 21,607 18, margin, % Fuel Business ,141 1, margin, % Service includes workshop services, spare parts and accessories. The Car Business includes sales of new and used cars and customer financing. 1) Net turnover does not include eliminations for internal sales. Growth in the Service Business Fourth quarter Full year Per cent Sweden Norway Total Sweden Norway Total Change from last year Underlying turnover Calendar effect Adjusted turnover See "Definitions and performance measures" on page 19. Continued strong growth and earnings in the Service Business Strong earnings from sales of new cars The Service Business reported a profit during the fourth quarter that was SEK 24 M better compared with last year, with a further improved margin of 13.9 per cent (13.5). Demand was very good, and we are still looking for mechanics, especially in Sweden. Sweden s adjusted turnover increased by 7.7 per cent and Norway s by 5.6 per cent year compared with last year. There was one less working day in all countries compared with the same quarter last year. Deliveries of new cars in the Car Business decreased by 2 per cent for comparable operations, and deliveries of used cars decreased by 4 per cent compared with last year. Underlying orders received for new cars during the quarter increased by 4 per cent compared with last year. Earnings from sales of new cars improved by SEK 22 M, due mainly to higher turnover. The increase is attributable to a higher average selling price, due to the fact that the proportion of expensive cars increased considerably. Sales of used cars during the quarter showed a loss of SEK 23 M, compared with a profit of SEK 5 M last year. The poorer result was mainly attributable to the valuation of the car stocks. The stocks increased slightly during the quarter, but the turnover rate remained at a high level, about 10 times per year. The Fuel Business is concentrated to Sweden, and earnings amounted to SEK 7 M (6). All values in the above graphs pertain to isolated quarters. Year-end report 2017 Bilia AB (publ) 7 (20)

9 On 3 January 2017, Bilia acquired the Toyota dealer MW Gruppen Stockholm AB plus three property companies, which together are deemed to constitute a business acquisition. The business is run from five facilities: three just south of Stockholm in Nacka, Haninge and Kungens Kurva, one in Södertälje and one in Eskilstuna. The operation has an annual turnover of around SEK 700 M and has reported an average operating profit of around SEK 28 M for the past two years. The purchase consideration was SEK 297 M. The entire purchase consideration was paid in cash. There is no contingent purchase consideration. The acquisition provides opportunities for synergies with Bilia s other Toyota operation in Sweden. The businesses have about 115 employees and will continue to be operated from the present-day facilities. Acquisition-related expenses amounting to SEK 0.5 M consist of fees to consultants for due diligence and have been recognized as Other operating expenses. Effects of the acquisition Below is the final acquisition analysis, and the difference between the final acquisition analysis and the preliminary version that was presented during the fourth quarter of 2016 is shown in a separate column. The acquisition has the following effect on the Group s assets and liabilities. Carrying amounts in Fair Fair value Difference versus MW Gruppen value recognised in preliminary acquisi- MSEK Stockholm adjustment Group tion analysis Intangible assets Property, plant and equipment Long-term investments Deferred tax asset Inventories Trade receivables and other receivables Cash and cash equivalents Interest-bearing liabilities Trade payables and other liabilities Deferred tax liability Net identifiable assets and liabilities Consolidated goodwill 61 0 Purchase consideration paid Less: Cash and cash equivalents in aquired operation 17 0 Net effect on cash and cash equivalents Acquired customer relations totalling SEK 88 M are recognised as intangible assets. Customer relations will be amortised over 10 years. The goodwill item is attributable in its entirety to synergies made available by the acquisition. The acquisitions of Allbildelar Försäljning i Huddinge AB, a property company and a BMW- and MINIworkshop in 2017 do not have any essential impact on the Group, so the acquisition analysis is not presented. Year-end report 2017 Bilia AB (publ) 8 (20)

10 Bilia AB is responsible for the Group s management, strategic planning, purchasing, public relations, business development, marketing, HR, real estate activities, accounting and financing. The Parent Company s operating loss for the fourth quarter amounted to SEK -24 M (loss: 20). As a result of its operations, the Bilia Group is exposed to both operating risks and financial risks. The operating risks include: Market trend for new cars, new technology and alternative sales channels. 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 2016 Annual Report. This interim report has been prepared in accordance with International Financial Accounting Standards (IFRSs) IAS 34 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. New IFRSs have not had any significant effect on the Group s or the Parent Company s financial reports during the year. A number of new or revised IFRSs will enter into effect until during the coming financial year. Starting in 2018, IFRS 15 Revenue from Contracts with Customers will replace existing IFRS standards related to revenue recognition, such as IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. IFRS 15 is based on recognising revenue when control over a good or service is transferred to the customer, which differs from the existing principle of revenue recognition based on transfer of risks and rewards. An evaluation has been made of the effects of the application of IFRSs on Bilia's accounts, whereby it was found that they have no significant effect on the financial statements. IFRS 9 Financial Instruments is not judged to have any significant effect on the financial statements. Disclosures in accordance with IAS 34, paragraph 16, are made not only in the financial statements and notes, but also in other parts of the interim report. The Annual General Meeting will be held on 10 April 2018 at IVA Konferenscenter, Grev Turegatan 16, in Stockholm. Shareholders who wish to have a matter on the agenda at the AGM should contact Bilia no later than 20 February 2018 in order for the matter to be included in the notice of the meeting. The annual report for 2017 will be published on Bilia s website on 20 March Year-end report 2017 Bilia AB (publ) 9 (20)

11 On 2 January 2018, Bilia acquired the BMW and MINI dealer in Norway Bilsalongen AS. The business is run from one facility in Skien. Effects of the acquisition The acquisition has the following effects on the Group s assets and liabilities. The following figures for acquired net assets and purchase consideration are preliminary. MSEK Intangible assets 22 Property, plant and equipment 3 Long-term investments 0 Deferred tax asset 0 Inventories 49 Trade receivables and other receivables 19 Cash and cash equivalents 0 Interest-bearing liabilities 11 Trade payables and other liabilities 36 Deferred tax liability 5 Net identifiable assets and liabilities 41 Consolidated goodwill 15 Purchase consideration paid 56 Less: Cash and cash equivalents in aquired operation 0 Net effect on cash and cash equivalents 56 This year-end report has not been subjected to special examination by the auditors. The interim report for the first quarter of 2018 will be published on 27 April Gothenburg, 9 February 2018 Bilia AB (publ) Board of Directors For further information, please contact Per Avander, Managing Director and CEO, or Kristina Franzén, CFO, telephone Bilia AB (publ) Box 9003, SE Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: bilia.com Corporate ID No.: This is information that Bilia AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 9 February 2018, at 1 p.m. CET. Year-end report 2017 Bilia AB (publ) 10 (20)

12 Full year Service Car Fuel Total Segment Group reconciliation SEK M Net turnover External sales 4,734 4,303 21,607 18,565 1,141 1,031 27,482 23, ,492 23,906 Internal sales 1,264 1,016 1,264 1,016-1,264-1, Total net turnover 5,998 5,319 21,607 18,565 1,141 1,031 28,746 24,915-1,254-1,009 27,492 23,906 Depreciation/amortisation Operational earnings/operating profit/loss , Interest income Interest expenses Shares in profits of associated companies Profit before tax Tax expense for the period Profit for the year from continuing operations Loss from discontinued operation, net after tax Net profit for the period Revenue and cost items that affect the comparability of the Group's operating profit: - Profit from sale of operation, other Redemption of pension liability Structural costs etc Acquisition-related costs and value adjustments Amortisation of surplus values Total Other items not affecting cash besides depreciation/amortisation Assets Interests in associated companies Deferred tax assets Other assets 10,471 9,667 Total assets 10,958 10,132 Investments in non-current assets ,684 1, ,830 1, ,908 1,948 Liabilities Equity 2,620 2,511 Liabilities 8,338 7,621 Total liabilities and equity 10,958 10,132 Revenue from Non-current external customers assets SEK M Geographical segments Sweden 17,248 15,772 5,518 4,457 Norway 7,324 6, Germany 1, Luxembourg 1, Belgium Segment reconciliation ,602-1,370 Total 27,492 23,906 5,768 5,021 Year-end report 2017 Bilia AB (publ) 11 (20)

13 Full year Service Car Sweden Norway Western Europé 1) Sweden Norway Western Europé 1) SEK M Net turnover External sales 3,184 2,889 1,060 1, ,916 11,849 6,258 5,230 2,433 1,486 Internal sales Total net turnover 3,964 3,504 1,480 1, ,916 11,849 6,258 5,230 2,433 1,486 Depreciation/amortisation Operational earnings/operating profit/loss Shares in profits of associated companies Revenue and cost items that affect the comparability of the Group's operating profit: - Profit from sale of operation, other Redemption of pension liability Structural costs etc Acquisition-related costs and value adjustments Amortisation of surplus values Total Other items not affecting cash besides depreciation/amortisation Assets Interests in associated companies Investments in non-current assets ,429 1, ) Schäfer, Germany is included as from 1 August Luxembourg is included as from 1 April Belgium is included as from 1 July Year-end report 2017 Bilia AB (publ) 12 (20)

14 Fourth quarter Full year SEK M Continuing operations Net turnover 7,186 6,297 27,492 23,906 Costs of goods sold -5,995-5,188-23,169-20,069 Gross profit 1,191 1,109 4,323 3,837 Other operating income Selling expenses ,762-2,451 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 Profit for the period from continuing operations Discontinued operation Loss from discontinued operation, net after tax Net profit for the period Other comprehensive income/loss Items that can be reclassified to profit or loss Translation differences attributable to foreign operations Translation differences transferred to the net profit for the year 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 period attributable to: Parent Company's shareholders Comprehensive income for the period attributable to: Parent Company's shareholders Weighted average number of shares, '000: - before dilution 101, , , ,261 - after dilution 101, , , ,296 Basic earnings/loss per share, SEK Diluted earnings/loss per share, SEK Weighted average number of own shares, ' Continuing operations Basic earnings/loss per share, SEK Diluted earnings/loss per share, SEK ) Straight-line amortisation/depreciation by asset class: - Intellectual property Land and buildings Equipment, tools, fixtures and fittings Leased vehicles Total Year-end report 2017 Bilia AB (publ) 13 (20)

15 SEK M 31/ / Assets Non-current assets Intangible assets Intellectual property Goodwill ,306 1,207 Property, plant and equipment Land and buildings Construction in progress Equipment, tools, fixtures and fittings Leased vehicles 1) 2,966 2,744 4,047 3,425 Long-term investments Financial investments 1) Long-term receivables 2) Deferred tax assets Total non-current assets 5,847 5,105 Current assets Inventories, merchandise 3,408 3,451 Current receivables Other receivables 1) 1,501 1,472 Cash and cash equivalents 2) Total current assets 5,111 5,027 Total assets 10,958 10,132 Equity and liabilities Equity Share capital Other contributed capital Reserves Retained earnings including net profit for the year 2,234 2,111 Total equity 2,620 2,511 Non-current liabilities Bond issue 3) 1, Interest-bearing liabilities 4) Other liabilities and provisions 3) 2,246 2,077 3,415 3,002 Current liabilities Interest-bearing liabilities 4) Other liabilities and provisions 4,194 4,285 4,923 4,619 Total equity and liabilities 10,958 10,132 Assets 1) Of which interest-bearing ) Interest-bearing Liabilities 3) Of which interest-bearing 1, ) Interest-bearing Year-end report 2017 Bilia AB (publ) 14 (20)

16 SEK M 31/ / Opening balance 2,511 2,056 Cash dividend to shareholders Exercised warrants/debenture loan - 2 Sold warrants - 1 New share issue Discount/issue at discounted price - 6 Buy-back of own shares Revaluation of put option -9 - Comprehensive income for the year Closing balance 2,620 2,511 Fourth quarter Full year SEK M Operating activities Profit before tax from continuing operations Loss before tax from discontinued operation Depreciation and impairment losses from continuing operations Depreciation and impairment losses from discontinued operation Other items not affecting cash Tax paid Change in inventories Change in operating receivables Change in operating liabilities Cash flow from operating activities ,293 1,654 Investing activities Acquisition of non-current assets (intangible and tangible) Disposal of non-current assets (intangible and tangible) Acquisition of leased vehicles ,577-1,680 Disposal of leased vehicles Operating cash flow Investment in financial assets Disposal of financial assets Acquisition of subsidiary/operation, net Disposal of subsidiary/operation, net Cash flow from investing activities ,219-1,337 Cash flow after net investments Financing activities Borrowings Repayment of loans Repayment of lease liabilities Exercised warrants/debenture loan Sold warrants Buy-back of own shares Revaluation of put option Dividend paid to the 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 Year-end report 2017 Bilia AB (publ) 15 (20)

17 Derivative instruments such as interest rate swaps and forward exchange contracts are used to control Bilia's interest rate risk. They may only be to meet the requirements on minimising risk in a cost-effective manner as prescribed by the finance policy. The carrying amount of financial instruments is a reasonable approximation of fair value. 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 and liabilities, valuation level 2, have been valuated to fair value. The value of the currency derivatives is not material and does not constitute a significant item in the Consolidated Statement of Financial Position. Measurement of the currency derivatives at fair value has resulted in cost of SEK 1 M that is matched by a revaluation of assets in foreign currencies. The effect on the Group's profit is SEK 0 M. 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. 1/16 2/16 3/16 4/16 1/17 2/17 3/17 4/17 Continuing operations Net turnover, SEK M 5,433 6,433 5,743 6,297 6,815 7,189 6,302 7,186 Operational earnings, SEK M Operational margin, % Operating profit, SEK M Operating margin, % Profit before tax, SEK M The ratio of net debt to EBITDA, times 1) The Bilia Group Profit/loss for the period, SEK M Return on capital employed, % 1) Return on equity, % 1) Equity/assets ratio, % Data per share (SEK) 2) Earnings/loss for the period ) ) ) ) Equity 22 4) ) 26 9) See "Definitions and performance measures" on page 19. 1) 2) 3) 4) 5) 6) 7) 8) 9) Rolling 12 months. Based on number of shares outstanding, 102,799,952. Based on weighted average number of shares outstanding during first quarter, 101,325,845. Based on number of shares outstanding at 31 March 2016, 101,401,468. Based on weighted average number of shares outstanding during second quarter, 102,108,394. Based on weighted average number of shares outstanding during third quarter, 102,326,267. Based on number of shares outstanding at 30 September 2017, 101,575,952. Based on weighted average number of shares outstanding during fourth quarter, 101,221,876. Based on number of shares outstanding at 31 December 2017, 100,950,952. Year-end report 2017 Bilia AB (publ) 16 (20)

18 Fourth quarter Full year SEK M 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 Loss after financial items Appropriations Profit before tax Tax Net profit for the year ) Straight-line amortisation/depreciation by asset class: - Intellectual property Buildings Equipment, tools, fixtures and fittings Total Year-end report 2017 Bilia AB (publ) 17 (20)

19 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 1,348 1,122 Other securities held as non-current assets 0 0 Deferred tax asset ,393 1,168 Total non-current assets 1,497 1,230 Current assets Current receivables Receivables from Group companies 1,489 1,486 Other receivables Cash on hand and accrued deposits Total current assets 1,688 1,709 Total assets 3,185 2,939 Equity and liabilities Equity Restricted equity Share capital Statutory reserve Non-restricted equity Share premium reserve Retained earnings including net profit for the year ,098 Total equity 1,272 1,402 Untaxed reserves Provisions Deferred tax liability Non-current liabilities Bond issue 1, Other liabilities 5 5 1, Current liabilities Liabilities to Group companies Other liabilities Total equity and liabilities 3,185 2,939 Year-end report 2017 Bilia AB (publ) 18 (20)

20 Bilia applies the new guidelines from ESMA (European Securities and Markets Authority) concerning alternative performance measures (APMs). Even though these performance measures are not defined or specified by IFRSs, Bilia believes that they provide valuable information to investors and Bilia s management as a complement to IFRSs for assessing Bilia s performance. Return on equity Net profit for the year in relation to average equity. Return on capital employed Operating profit plus interest expense included in the business and financial income in relation to average capital employed. Amortisation of surplus values Occurs in connection with acquisitions of operations and is recognised under intangible assets. Normally these surplus values are amortised over a 10-year period. EBITDA Operational earnings plus total depreciation/amortisation less amortisation of surplus values and depreciation of leased vehicles with repurchase agreements. Acquisition-related costs and value adjustments Pertains to costs for legal consultants and other external costs associated directly with an acquisition, and value adjustments regarding acquired inventory assets, which are depreciated over the turnover rate of the asset. Adjusted turnover Net turnover is adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is also made for exchange rate differences and for calendar effect. Comparable operations Financial information and number of units that are adjusted for operations that have been acquired or disposed of during one of the periods. Deliveries Cars that have been physically turned over to the customer and invoiced and are included in reported net turnover. Liquidity Unutilised credit with Nordea and DNB and cash and cash equivalents. Net debt Net debt consists of interest-bearing liabilities less cash and cash equivalents, interestbearing current and long-term receivables, interests in associated companies and leased vehicles, long-term. The ratio of net debt to EBITDA Net debt in relation to EBITDA. Operating cash flow Cash flow from operating activities plus investments in and disposals of intangible assets and property, plant and equipment. Operational margin Operational earnings in relation to net turnover. Operational earnings Operating profit, excluding revenues and costs that affect comparability between accounting periods and/or operating segments. They include, but are not limited to, acquisition-related expenses, value adjustments, restructurings and amortisation of surplus values. Order backlog New cars ordered by the customer but not yet delivered. Gain from sale of operation Difference between purchase consideration and the operation s consolidated carrying amount, less selling costs. Operating margin Operating profit in relation to net turnover. Equity/assets ratio Equity in relation to balance sheet total. Year-end report 2017 Bilia AB (publ) 19 (20)

21 Structual costs Costs that significantly alter the thrust and/or scope of the operation. Examples of structural costs may be costs for reducing the number of employees and costs for vacating a leased facility before the expiration of the lease. Capital employed Balance sheet total less non-interest-bearing current liabilities and provisions as well as deferred tax liabilities. Growth Increase or decrease of net turnover in relation to the preceding year. Underlying values Values that are adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is made for exchange rate differences, where applicable. Reconciliation of performance measures can be found at bilia.com/en//finances/finances/performancemeasures/. Year-end report 2017 Bilia AB (publ) 20 (20)