Q Gunnebo Industrier Holding AB Unaudited consolidated financial report

Transcription

1 2017 Q Unaudited first 9 months and third quarter results Gunnebo Industrier Holding AB Unaudited consolidated financial report

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3 Key Highlights The strong growth in order intake continued in Q3 with positive customer sentiment in a majority of the key markets 12,0% growth in order intake January to September Net sales increased 8,7% to MSEK 654 (601) in January to September Operating profit increased 16,4% to MSEK 47 (40) in January to September Q Order intake (MSEK): Net sales (MSEK): EBITDA (MSEK): Operating profit (MSEK): Operating margin: 204 (178) 201 (180) 16 (15) 9 (7) 4,5% (3,8%) 3

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5 Markets and order intake January to September 2017 Group order intake increased by 12,0% to 654 MSEK (584). Components, chain and shackles The positive order intake trend continued across many markets. The order intake increased by 18,7% to MSEK 545 (459). The customer demand in Q3 remained on a relatively high level in a majority of the key geographies. Continued growth in order intake in Scandinavia and Western Europe as a result of growth activities as well as improving market demand. The growth came primarily from construction, general industry, fish farming/aquaculture and trawl fishing. The positive order intake trend in the US continued in Q3 as a direct result of implemented growth initiatives. The global market demand from the Oil & Gas industry is still on a relatively low level, but new business from this industry has contributed to growth in comparison to last year. Blocks and sheaves Sales of Crane blocks to mobile crane manufacturers and sheaves to the Oil & Gas industry continued to suffer from weak underlying demand during Q3. The increase in rig count (US land-based) over the past 12 months has not yet improved the demand for sheaves. The order intake was MSEK 108 (124). Income Statement January to September 2017 Net sales increased 8,7% to MSEK 654 (601) following the strong order intake during the period. Net sales within components, chain and shackles 1 increased 15,4% to MSEK 546 (473). Net sales within blocks and sheaves decreased by 16,0% to MSEK 108 (128). Gross profit increased to MSEK 229 (211). Higher revenue contributed positively, however the increase in steel prices during 2017 had a negative effect on gross profit. The operating profit increased 16,4% to MSEK 47 (40) corresponding to a margin of 7,2% (6,7%). The operating profit was negatively affected by exchange rate differences on operating assets/liabilities of MSEK -5,3 (2,9) and by items affecting comparability of MSEK -4,4 (-9,5). Net financial items were MSEK -106 (-63). Net financial items was negatively affected by MSEK -27 (-2,2) of currency effects on financial items arising from the groups intra loan structure and by MSEK -25 (-22) non-cash interest expense on the shareholder loans. In addition, net financial items were negatively affected by the noncash write-off of the arrangement fee of MSEK -15 connected to the bank loan that was repaid in May. 1 Components, chain and shackles together with blocks and sheaves are reported as one business segment in the annual report for 2016 in note 1 (referred to as Lifting/Blocks ). No new business segments have yet been defined following the divestment of GBO Fastening Systems AB in January

6 Profit after financial items was MSEK -59 (-23). Net profit for the period was MSEK -66 (-5,2). July to September 2017 Net sales increased 11,4% to MSEK 201 (180) following the strong order intake during the period. Net sales within components, chain and shackles increased 13,9% to MSEK 165 (145). Net sales within blocks and sheaves increased by 1,1% to MSEK 36 (35). Gross profit increased to MSEK 66 (58). Higher revenue contributed positively, however the steel prices continued to increase during Q3 with a negative effect on the gross profit compared to the previous year. The operating profit was MSEK 9,0 (6,9), corresponding to a margin of 4,5% (3,8%). The operating profit was negatively affected by exchange rate differences on operating assets and liabilities of MSEK -1,3 (0,3) and by items affecting comparability of MSEK -0,4 (-2,7). Net financial items were MSEK -27 (-18). Net financial items was negatively affected by MSEK -8,7 (0,3) of currency effects on financial items arising from the groups intra loan structure and by MSEK -8,5 (-7,4) non-cash interest expense on the shareholder loans. Profit after financial items was MSEK -18 (-11). Net profit for the period was MSEK -21 (-3,1). Group consolidated financials Summary Jan-Sep Jan-Sep Full year Net sales MSEK Gross profit MSEK EBITDA MSEK EBITDA-margin % 10,6% 10,9% 10,4% Operating profit MSEK Operating profit margin % 7,2% 6,7% 6,2% Equity to assets ratio % 27% 41% 27% Number of full time employees, end of period #

7 Balance sheet, cash flow and funding January to September 2017 A senior secured bond issue of MSEK 600 at STIBOR 3 months + 500bps was successfully placed in the Nordic bond market in May The term for the bond is three years with the possibility of a subsequent issue of MSEK 300 before maturity. Net proceeds from the bond issue were used to refinance existing bank loans and to finance general corporate purposes. An application has been made for the bonds to be listed on NASDAQ Stockholm. A revolving credit facility (RCF) of MSEK 60 was signed in connection with the bond issue. The terms and conditions for the bond allows for an RCF of maximum MSEK 100. Total liquid funds were MSEK 65 (35) including MSEK 10 drawn from the RCF. The equity to total asset ratio was 27% (41%). Total equity was MSEK 418 (897). The divestment of GBO Fastening Systems AB had a negative impact on total equity. The shareholder loans were MSEK 250 (218). The interest on these loans is accrued as payment in kind, i.e. no effect on cash flow until they fall due. The cash flow from operating activities before changes in working capital was MSEK 31 (45). Investments in tangible assets were MSEK -6,1 (-9,3). No material investments in intangible assets were made in Parent company January to September 2017 Profit /Loss after financial items amounted to MSEK -85 (-6,0). Cash assets amounted to MSEK 1,5 (0,0) at the end of the period. Undistributed earnings in the parent company amounted to MSEK (1 109). 7

8 Notes: Employees The number of employees by the end of September 2017 was 487 (477). Risk factors Gunnebo Industries is exposed to several operational and financial risk factors including, but not limited to, commodity prices, property damage, IT, interest rates, exchange rates and financing availability. For further information please refer to the annual report for 2016 note 28 and 29. Subsequent events No major subsequent events have occurred after closing of September Seasonality Gunnebo Industries is not exposed to any material seasonality in its operations. Discontinued operations Gbo Fastening Systems Group and Telesteps AB was sold in early January with a positive cash flow of MSEK 61. The sold companies had in 2016 net sales MSEK 420 and an operating profit of MSEK 7. Related party transactions The shareholder loan has terms based on arm s length principles. Shareholder loan is reported on a separate row in Consolidated Income Statement and Consolidated Balance Sheet. No other related transactions that significantly affect the Gunnebo Industries result or financial statements have been made during the period. No significant related party transactions have been done in the parent company apart from the intercompany interest charges. Accounting principles This interim report has been prepared in accordance with IAS 34, Interim financial reporting and the Swedish Annual Accounts Act. The financial statement of the parent company has been prepared in accordance with the Swedish Annual Accounts Act, chapter 9 and the Swedish Financial Reporting Board s standard RFR 2 Accounting for Legal Entities. The accounting policies adopted are consistent with those presented in the Annual Report of Financial calendar The financial interim reports for subsequent reporting periods will be made available on Gunnebo Industries website at: Q4 2017: 28 February 2018 Q1 2018: 31 May 2018 Q2 2018: 31 August 2018 Q3 2018: 30 November 2018 The audited 2017 annual report will be made available on Gunnebo Industries website on 30 April Contact person for investor relations is Group CFO Kristian Gylling. Review of this report This report has not been audited. 8

9 KPIs and Alternative Performance Measures (APMs) We are using the following APMs. EBITDA: defined as operating profit before depreciation and before amortization. EBITDA margin: defined as EBITDA in relation to net sales. Operating profit margin: defined as operating profit in relation to net sales. Equity to assets ratio: defined as total equity in relation to total assets. We are using these APMs because we believe that they serve as proper indicators for Gunnebo Industries financial performance as well as financial strength. 9

10 The Board and the Group CEO confirm to the best of our knowledge that the consolidated set of financial statements for Gunnebo Industries as well as the financial statements for Gunnebo Industries parent company, for the period 1 January 2017 to 30 September 2017, has been prepared in accordance with applicable accounting standards, and that it gives a true and fair view of the group s operations, assets, liabilities, financial position and result for the period as well as a fair view of material risk facing the company. Stockholm, 30 November 2017 Jörgen Centerman Chairman Sebastian Ehrnrooth Board member Carl-Gustaf Bergström Board member Fredrik Wiking Group CEO 10

11 Consolidated Income Statement, condensed Q3 Q3 Jan-Sep Jan-Sep Full year MSEK Net sales 200,7 180,2 653,7 601,2 795,8 Costs for goods sold -134,6-121,9-424,6-390,6-518,2 Gross profit 66,1 58,3 229,1 210,6 277,6 Selling and administrative expenses -55,5-49,6-173,2-165,8-222,4 Other operating income and expenses 1) -1,6-1,8-9,1-4,6-6,1 Operating profit 2) 9,0 6,9 46,8 40,2 49,1 Operating margin 4,5% 3,8% 7,2% 6,7% 6,2% Financial income and expences Currency effects on financial items -8,7 0,3-27,3-2,2 25,1 Interest expenses, shareholder loan -8,5-7,4-25,2-22,0-29,3 Other financial items, net -10,2-10,7-53,2-38,7-48,0 Profit/loss after financial items -18,4-10,9-58,9-22,7-3,1 Tax on profit/loss for the period -2,8 3,5-4,3 21,1 6,9 Profit/loss for the period on continued operations -21,2-7,4-63,2-1,6 3,8 Loss from discontinued operations 0 4,3-2,5-3,6-407,8 Profit/loss for the period -21,2-3,1-65,7-5,2-404,0 No non-controlling interest exist Adjusted profit/loss for the period 3) -3,6 2,4 8,7 32,1 21,5 1) Of w hich items affecting comparability: -0,4-2,7-4,4-9,5-13,5 (Cost for changing structure regarding companies, personnel and organisation.) 2) Operating profit include: Depreciation -5,0-6,1-16,0-18,6-24,6 Amortization -2,1-2,2-6,4-6,7-8,8 3) "Adjusted profit/loss for the period" is defined as "Profit/loss for the period" before "Loss from discontinued operations", before "items affecting comparability", before "Interest expense on shareholder loan", before "Financial currency differences", and before the w rite-off of MSEK 15 of the arrangement fee connected to the bank loan that w as repaid in May Further, no tax effect is assumed on these adjustments since the vast majority of them is accounted for in the Sw edish legal entities w here there are deferred tax assets that could be utilized to fully offset any incremental tax costs. Consolidated Comprehensive Income Statement, condensed Q3 Q3 Jan-Sep Jan-Sep Full year MSEK Profit/loss for the period -21,2-3,1-65,7-5,2-404,0 Items that may be reclassified to income statement -0,3-1,2 15,8-3,4-36,4 Items that will not be reclassified to income statement 0,0 0,0 0,0 0,0 3,1 Other comprehensive income for the period -0,3-1,2 15,8-3,4-33,3 Total comprehensive income for the period -21,5-4,3-49,9-8,6-437,3 11

12 Consolidated Balance Sheet, condensed 30 Sep 30 Sep Full year MSEK Assets Non-current assets Intangible assets 877,9 886,9 884,8 Tangible assets 133,7 151,5 148,0 Financial assets 70,2 72,0 69,5 Total non-current assets 1 081, , ,3 Current assets Inventories 215,5 228,1 230,8 Current receivables 177,1 162,2 153,2 Liquid assets 64,6 35,3 51,0 Assets classified as held for sale - 637,8 227,8 Total current assets 457, ,4 662,8 Total assets 1 539, , ,1 Equity and liabilities Total equity 418,4 897,0 468,3 Non-current liabilities Shareholder loan 250,0 217,5 224,8 Other long-term liabilities 740,3 783,9 789,1 Total non-current liabilities 990, , ,9 Current liabilities Other current liabilities 130,3 131,8 145,6 Liabilities directly associated with assets classified as held for sale - 143,6 137,3 Total current liabilities 130,3 275,4 282,9 Total equity and liabilities 1 539, , ,1 The group has derivatives valued to -0,1MSEK(30 Sep 2017), +0,1MSEK(30 Sep 2016) and +0,1MSEK(31 Dec 2016). Change in Equity, condensed 30 Sep 30 Sep Full year MSEK Equity has been changed during the period: At the start of the period 468,3 905,6 905,6 Other comprehensive income for the period 15,8-3,4-33,3 Profit/Loss for the period -65,7-5,2-404,0 Total comprehensive income for the period -49,9-8,6-437,3 At the end of the period 418,4 897,0 468,3 12

13 Cash Flow Analysis, condensed Q3 Q3 1) Jan-Sep Jan-Sep 1) Full year 1) MSEK Cash flow from operations Cash flow from operating activities before change in working capital 1,3 14,4 31,1 44,5 46,2 Total change in working capital 7,8 59,3-32,5 39,8 41,3 Cash flow from operations 9,1 73,7-1,4 84,3 87,5 Investments Net investments -1,8-4,4-6,1-9,3-11,1 Acquisition/Divestment of companies and operations 0,0 0,0 61,1 0,0 0,0 Cash flow from investments -1,8-4,4 55,0-9,3-11,1 Financing Changes in long-term receivables and liabilities -0,1-6,7-81,5-40,4-50,5 Dividends to shareholders 0,0 0,0 0,0 0,0 0,0 Cash flow from financing -0,1-6,7-81,5-40,4-50,5 Total cash flow 7,2 62,6-27,9 34,6 25,9 Liquid assets at beginning of the period 57,7 38,6 94,5 64,6 64,6 Translation differences on liquid assets -0,3 0,4-2,0 2,4 4,0 Liquid assets at the end of the period 64,6 101,6 64,6 101,6 94,5 Operating Cash Flow Q3 Q3 1) Jan-Sep Jan-Sep 1) Full year 1) MSEK Cash flow from operating activities 9,1 73,7-1,4 84,3 87,5 Reversal of tax paid and net financial items affecting cash flow 11,8 8,7 22,8 31,2 39,8 Net investments -1,8-4,4-6,1-9,3-11,1 Operating cash flow 19,1 78,0 15,3 106,2 116,2 1) Please note that all periods in 2016 includes GBO Fastening Systems AB in accordance w ith IFRS 5. 13

14 Parent Company Income Statement, condensed Q3 Q3 Jan-Sep Jan-Sep Full year MSEK Net sales 0,0 0,0 0,0 0,0 0,0 Operating profit/loss 0,0-0,1-0,1-1,3-0,1 Financial income and expenses -32,9 2,4-84,5-4,7 58,1 Profit/loss after financial items -32,9 2,3-84,6-6,0 58,0 Pre-tax profit/loss -32,9 2,3-84,6-6,0 58,0 Tax on profit/loss 0,0 0,0 0,0 6,5-16,0 Profit/loss for the year -32,9 2,3-84,6 0,5 42,0 Parent Company Balance Sheet, condensed 30 Sep 30 Sep Full year MSEK Financial assets 2 405, , ,4 Total non-current assets 2 405, , ,4 Current receivables 23,0 5,8 107,2 Liquid assets 1,5 0,0 0,0 Total current assets 24,5 5,8 107,2 Total assets 2 429, , ,6 Equity 1 075, , ,3 Non-current liabilities and provisions 850,0 767,4 438,7 Current liabilities 504,3 204,5 489,6 Total equity and liabilities 2 429, , ,6 14

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