VBG GROUP INTERIM REPORT JANUARY–MARCH 2017 Q 1 VBG Group AB (publ) in Vänersborg is the Parent Company of an international engineering Group with wholly owned companies in Europe, North America, Brazil, South Africa, Australia, India and China. The Group’s operations are divided into four divisions – VBG Truck Equipment, Edscha Trailer Systems, Mobile Climate Control and Ringfeder Power Transmission – with products that are marketed under strong, well-known brands. VBG Group AB’s Series B share was introduced on the stock exchange in 1987 and is listed today on the Nasdaq Stockholm Mid Cap list. SEK 769 M Consolidated turnover more than doubled to SEK 768.6 M (371.6) in the first quarter. 13.4 % Operating margin for the first quarter was 13.4 per cent (13.7).
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VBG GROUPINTERIM REPORTJANUARY–MARCH 2017
Q1VBG Group AB (publ) in Vänersborg is the Parent Company of an international engineering Group with wholly owned companies in Europe, North America, Brazil, South Africa, Australia, India and China. The Group’s operations are divided into four divisions – VBG Truck Equipment, Edscha Trailer Systems, Mobile Climate Control and Ringfeder Power Transmission – with products that are marketed under strong, well-known brands. VBG Group AB’s Series B share was introduced on the stock exchange in 1987 and is listed today on the Nasdaq Stockholm Mid Cap list.
SEK 769 MConsolidated turnover more than doubled to SEK 768.6 M (371.6) in the first quarter.
13.4%Operating margin for the first quarter was 13.4 per cent (13.7).
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
1
• Consolidated turnover more than doubled to SEK 768.6 M (371.6), where the
acquired division Mobile Climate Control accounted for SEK 347.5 M of the increase.
• Operating profit rose to SEK 102.7 M (51.1), of which SEK 28.8 M was from
Mobile Climate Control.
• Operating margin was 13.4 per cent (13.7).
• Profit after financial items increased to SEK 94.2 M (48.9).
• The new share issue 1:1 was completed, doubling the number of outstanding
shares and contributed SEK 779 M net in equity to the company, after deductions
for issue expenses.
KEY FIGURES
SEK M Q1 2017 Q1 2016 Full-year 2016
Net turnover 768.6 371.6 1,543.9
Operating profit before items affecting comparability 102.7 51.1 196.7
Operating margin, % 13.4 13.7 12.7
Items affecting comparability — — –12.71
Reported operating profit 102.7 51.1 184.0
Reported operating margin, % 13.4 13.7 11.9
Profit after financial items 94.2 48.9 168.2
Profit margin, % 12.3 13.1 10.9
Profit after tax 66.6 34.9 120.8
Return on capital employed (ROCE), % 13.7 19.0 12.7
Return on equity (ROE), % 17.6 15.6 12.7
Equity/assets ratio, % 51.0 68.5 29.12
Earnings per share, basic and diluted, SEK 3.80 2.79 9.66
Average number of outstanding shares during the period (thousands) 17,503 12,502 12,502
1 Negative SEK 7.9 M pertaining to acquisition-related costs attributable to the acquisition of Mobile Climate Control, and negative SEK 4.8 M pertaining to costs for an action programme to increase profitability in Ringfeder Power Transmission.
2 The acquisition balance pertaining to Mobile Climate Control was updated during the first quarter 2017, meaning the consolidated Balance Sheet at 31 December 2016 was also updated.
INTERIM REPORTJANUARY – MARCH 2017
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
2
THIS IS THE VBG GROUP
VBG Group AB (publ) in Vänersborg is the Parent Company
of an international engineering Group with wholly owned
companies in the USA, Canada, India, Brazil, China, Australia,
South Africa and nine countries in Europe. The Group’s opera-
tions are divided into four divisions – VBG Truck Equipment,
Edscha Trailer Systems, Mobile Climate Control and Ringfeder
Power Transmission – with products that are marketed under
strong, well-known brands. VBG Group AB’s Series B share
was introduced on the stock exchange in 1987 and is listed
today on the Nasdaq Stockholm Mid Cap list.
Vision
We are number one or two globally in the industrial niches in
which we are active. We make a difference by creating the
products and services of the future.
Business concept
The VBG Group will, within selected product and market
segments, acquire, own and develop industrial companies in
business-to-business commerce with strong brands and good
growth potential. Based on a long-term commitment and with
a focus on growth and profitability, the VBG Group’s share-
holders will be offered attractive value growth.
Financial goals
• > 10 per cent in average annual turnover growth over a
five-year period, of which 5 per cent attributable to actual
organic growth and 5 per cent to structural growth.
• > 12 per cent in average operating margin rolling five years.
Strategies
The Parent Company, VBG Group AB, is responsible for the
strategic governance of the Group as a whole. This entails the
approval and follow-up of divisional targets and strategies,
providing support in the form of industrial expertise and iden-
tifying and conducting acquisitions.
Furthermore, the Parent Company is responsible for allocating
capital, strategic HR and IT work and the operation of all
shared IT systems.
Strategies for the divisions:
• Strong brands and leading market positions in
selected niches.
• High customer value in the products.
• Diversified customer base.
• International expansion.
Stable ownership situation
The VBG Group’s principal owners comprise three foundations
that were established by the Group’s founder, Herman Krefting.
This structure has historically provided a high degree of finan-
cial stability, which in turn has resulted in solid total returns for
shareholders.
VBG GROUP IN THE WORLD
Own companies Importers/Agents
The VBG Group has 25 wholly owned companies in 16 countries and some 1,400 employees in 18 countries worldwide.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
3
SALES BY DIVISION SALES BY MARKET
Sweden, 9.0%
Other Nordic countries, 6.2%
Germany, 16.4%
Rest of Europe, 17.8%
North America, 43.0%
Brazil, 2.0%
Australia/New Zealand, 2.3%
Rest of the world, 3.2%
VBG Truck Equipment, 29.4%
Edscha Trailer Systems, 9.0%
Mobile Climate Control, 45.2%
Ringfeder Power Transmission, 16.4%
This is the VBG Group, cont.
DIVISIONS
VBG TRUCK EQUIPMENT
By virtue of its own strong brands, the division is an interna-tionally leading supplier of coupling equipment for trucks with heavy trailers, where the division accounts for more than 50 per cent of the global market via the Ringfeder and VBG brands. The division also has Onspot – automatic tyre chains with a world-leading position in its niche.
EDSCHA TRAILER SYSTEMS
By virtue of its own strong brands, the division is an interna-tionally leading supplier of equipment for trailers. The division accounts for more than 40 per cent of the global market for sliding roofs via the Edscha Trailer Systems and Sesam brands.
BRANDS
Our divisions
RINGFEDER POWER TRANSMISSION
By virtue of its own strong brands, the division is a recognised global market leader in selected niches within mechanical power transmission as well as energy and shock absorption. The division’s brands are Ringfeder, Tschan, Henfel and Gerwah. The customers are found in such widely disparate industrial markets as construc-tion, machinery, power and mining.
MOBILE CLIMATE CONTROL
By virtue of its own strong brand, the division is an industry-leading supplier of complete climate control systems (HVAC systems) to commercial motor vehicles, primarily in North America and Europe. The customers are mainly found in four market segments: buses, off-road vehicles, utility vehicles and defence vehicles.
VBG Group doubled its operating profit compared with the corresponding quarter of the preceding year.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2016
4
VBG Group’s European markets remain strong. This is evident
at all four divisions, but is most obvious for VBG Truck Equip-
ment and Mobile Climate Control. VBG Truck Equipment has
again reported excellent earnings and Mobile Climate Control
is delivering fully in line with expectations. The positive market
performance in Europe is reflected in VBG Group’s results.
Compared with the corresponding quarter of the preceding
year, the Group has doubled its operating profit. It is even
slightly better than I had expected, though we are of
course delivering at a higher level following the acquisi-
tion of Mobile Climate Control.
If we look outside Europe, we see that Henfel, our
company in Brazil, has noted a rise in order bookings
for several products, but as both the political and eco-
nomic situation in the country remains unstable, I
prefer not to draw premature conclusions, but con-
fine myself to stating that there are signs that the
economic situation in Brazil is slowly beginning to
turn around. In the North American market, where
A GOOD START TO 2017FOR THE NEW VBG GROUP
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
5
above all Mobile Climate Control has a large share of its busi-
ness, the situation is stable at a healthy level. We also see signs
here of a further rise in demand and Mobile Climate Control is
very hopeful of future success in competing for several new
contracts in the USA.
VBG Truck Equipment – strong start
With an increase in sales of almost 17 per cent, VBG Truck
Equipment reported a very strong first quarter in terms of
profitability. This is a result of the healthy economy and the
strength of the division’s markets, in combination with an
efficient operating structure. The first quarter is almost always
VBG Truck Equipment’s strongest quarter of the year.
Mobile Climate Control – gradual increase in demand
Mobile Climate Control noted favourable demand in almost
all markets in the first quarter. The clearest growth was in the
school bus segment in North America, which is the division’s
largest segment in its bus operations, but we can also note
stronger demand in the off-road vehicles segment in Europe.
This is confirmed by the gradual increase in order bookings for
Mobile Climate Control in the first quarter. Unlike VBG Truck
Equipment, the second and third quarters are usually Mobile
Climate Control’s strongest periods of the year. Therefore, it
will be particularly exciting to follow developments for the
division over the coming half year.
Edscha Trailer Systems – favourable sales in Germany provide
stable results
Edscha Trailer Systems continued to deliver at the same stable
level as in 2016, due to continuing favourable sales in Germany.
This compensates for the division’s Turkish market, which is
not surprisingly much weaker at present.
Ringfeder Power Transmission – results exceed expectations
Work to improve profitability for Ringfeder Power Transmission
is well underway and will continue for the rest of the year. The
division reported a better result than expected, partly due to
the cost-savings implemented in conjunction with the action
programme, but also because a shift took place during the
quarter in the division’s sales toward more profitable products.
Ringfeder Power Transmission also noticed to some extent
increased demand in the European market. We do not expect
rapid improvement, but all estimates indicate that we can
expect a better economic climate for heavy industry.
VBG Group – a good start with the new Group
As we now leave the first quarter behind us, I can state that
we are following our plans, to the letter. We completed the
new share issue, repaid the bridge financing taken in conjunc-
tion with the acquisition and focus has therefore shifted back
to our business. The new VBG Group is, in terms of sales and
earnings, at the level expected by myself and the Board of
Directors and, I believe, also as expected by the market. We
are now aiming to continue to deliver in line with the business
Cost of acquisition, Henfel1 Negative SEK 7.6 M in acquisition-related costs for Henfel Ltda, Brazil, of which negative SEK 6.9 M in the third quarter,
negative SEK 0.7 M in the fourth quarter and negative SEK 7.6 M pertaining to an increased provision for inventory obsolescence due to a changed valuation model in the fourth quarter.
2 Negative SEK 7.9 M pertaining to acquisition-related costs attributable to the acquisition of Mobile Climate Control, and negative SEK –4.8 M pertaining to costs for an action programme to increase profitability in Ringfeder Power Transmission.
3 The acquisition balance pertaining to Mobile Climate Control was updated during the first quarter 2017, meaning the consolidated Balance Sheet at 31 December 2016 was also updated.
GROUP
Turnover and earnings
The turnover of SEK 768.6 M (371.6) was 107.0 per cent
higher compared with the first quarter 2016 and excluding the
acquired volume of SEK 347.5 M pertaining to Mobile Climate
Control Group Holding AB, organic growth was 13.0 per cent.
Adjusted for currency effects, the actual organic growth was
10.2 per cent.
Consolidated operating profit doubled to SEK 102.7 M
(51.1), with an operating margin of 13.4 per cent (13.7). Turn-
over and operating profit of the individual divisions are pre-
sented on pages 8–11.
Group-wide overheads in the Parent Company that have
not been allocated to the divisions totalled SEK 4.5 M (3.0).
Net interest expense was SEK 12.5 M (expense: 1.3) and
the quarter’s currency effect on the Swedish companies’ for-
eign-currency denominated credits resulted in a positive cur-
rency effect of SEK 4.0 M (neg: 0.9). Taken together, this
resulted in a net financial expense of SEK 8.5 M (expense: 2.2).
The reason for the increased cost was the acquisition loan and
bridge loan raised in November in conjunction with the acqui-
sition of Mobile Climate Control. Accordingly, profit after
financial items amounted to SEK 94.2 M (48.9), and profit
NET TURNOVER, SEK M PROFIT AFTER FINANCIAL ITEMS*, SEK M
0
100
50
150
200
250
0
60
40
20
80
100
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4
2015 2016
Quarterly figures Rolling 4 quarters
2017
0
400
800
1,200
2,000
1,600
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4
2015 2016
Quarterly figures Rolling 4 quarters
0
400
200
600
800
1,000
2017
* Excluding items affecting comparability.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
7
after tax to SEK 66.6 M (34.9). Earnings per share amounted
to SEK 3.80 (2.79), calculated on the average number of out-
standing shares for the period, which following the new share
issue was 17.5 million, compared with 12.5 million in the pre-
ceding year.
Capital expenditures
The Group’s new capital expenditures for the year, excluding
acquired subsidiaries, amounted to SEK 7.3 M (13.2).
Financial position
Profit after tax for the period amounted to SEK 66.6 M (34.9)
and other comprehensive income to a loss of SEK 3.6 M
(income: 5.7), which resulted in comprehensive income of SEK
63.0 M (40.6). The fully-subscribed new share issue, which
was completed at the end of February, generated SEK 778.8
M net in equity for the company. Consolidated equity
increased, accordingly, to SEK 1,867.1 M during the period
(1,025.3 at year-end).
At the end of the year, the equity/assets ratio was unusually
low due to a temporarily high debt ratio related to the bridge
financing of SEK 800 M for the acquisition of Mobile Climate
Control. The equity/assets ratio was restored during the period
following the new share issue and was at 51.0 per cent 31
March (29.1 at year-end).
Cash and cash equivalents increased by SEK 18.9 M during
the period to SEK 295.2 M (276.3) at the end of the period. In
addition, there were unutilised overdraft facilities of SEK 100.0
M (at year-end there were no overdraft facilities), which means
the Group at the end of March had available liquidity of SEK
395.2 M (276.4).
The Group’s interest-bearing net debt (including pension
liability) declined by SEK 823.5 M during the period to SEK
868.9 M (1,692.4) at the end of the period.
The ratio of interest-bearing net debt to equity was 0.47 at
31 March 2017 (1.65 at 31 December 2016) and the ratio of
net debt to consolidated operating profit before depreciation/
amortisation and impairment (EBITDA) was 2.87 (7.31).
The acquisition of Mobile Climate Control resulted in prelimi-
nary goodwill of SEK 1,446.7 M in 2016. During the first quar-
ter 2017, the acquisition balance was updated, which meant
SEK 300 M was reallocated to trademarks with an amortisa-
tion period of 15 years. At the same time, this resulted in a
deferred tax liability of SEK 66.0 M and thereby a reduction in
previous goodwill value by SEK 234.0 M. This updated acquisi-
tion balance meant we also updated the consolidated balance
sheet at 31 December 2016, and the key figures influenced by
the changes. The Group’s remaining goodwill declined SEK 7.5
M due to exchange rate changes. The net effect of this was
the Group’s goodwill at the end of the first quarter amounted
to SEK 1,562.6 M (1,570.1 at year-end), which in relation to
equity amounted to a ratio of 0.84 (1.53).
Cash flow
Cash flow from operating activities increased to SEK 74.3 M
(54.7). Paid capital expenditures during the period amounted
to SEK 7.3 M (28.5). During the quarter, the Group’s total
borrowings and current financial liability declined SEK 826.9 M
(4.6), net, and the new share issue generated SEK 778.8 M
net. Combined, this resulted in a negative cash flow from
financing activities of SEK 48.1 M (neg: 4.6). Accordingly, net
cash flow for the year amounted to SEK 118.4 M (neg: 51.0).
Outlook for 2017
The Group makes no forecast.
Personnel
At 31 March 2017, there were 1,438 employees in the VBG
Group (1,401 at year-end), of which 207 (201) in Sweden.
During the first quarter 2017, the Group employed an aver-
age of 1,396 persons (735 during the year-earlier period). Of
these, 212 (188) were active in Sweden. The cost of salaries
and social security contributions in the quarter was SEK 186.1
M (98.9).
Per share data
In February, an oversubscribed new share issue was com-
pleted, 1:1 of outstanding Series A shares (1,220,000 shares)
and Series B shares (11,282,024 shares) with preferential rights
for existing shareholders, whereby VBG Group received SEK
778.8 M net after issue expenses. The total number of out-
standing shares (Series A and Series B) increased accordingly
from 12,502,024 shares to 25,004,048 shares. VBG Group AB
holds 1,191,976 own Series B shares. The issue price was set at
SEK 64 per share for both Series A and Series B shares.
During the first quarter, the average number of outstanding
shares is estimated at 17,502,800 shares and the number of
outstanding shares at the end of the period was 25,004,048
shares. This has consequently impacted the share-based key
figures for the first quarter.
Earnings per share (average number for the period) for the
quarter increased to SEK 3.80 (2.79). Equity per share (total
outstanding shares at the end of the period) was SEK 74.67 at
31 March 2017, compared with SEK 82.01 at year-end and
SEK 72.95 at the end of March in the preceding year.
At the end of the quarter, the share price was SEK 112.75,
which corresponds to a market capitalisation of SEK 2,819 M,
compared a share price of SEK 160.50 and market capitalisa-
tion of SEK 2,006 M at year-end.
The number of shareholders increased by 448 during the
first quarter to 5,043 (4,595 at year-end).
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
8
First quarter 2017
• Turnover rose 16.8 per cent to SEK 225.8 M (193.4).• Operating profit increased to SEK 53.3 M (37.1),
with an operating margin of 23.6 per cent (19.2).
VBG TRUCK EQUIPMENT
VBG Truck Equipment reported its strongest quarter on record
in terms of turnover, operating profit and operating margin.
Turnover for the first quarter increased 16.8 per cent year-on-
year to SEK 225.8 M (193.4). Adjusted for exchange rate
changes of 2.0 per cent, the actual organic growth was 14.8
per cent. Turnover increased in all markets compared with the
year-earlier period.
Operations have been highly stable for the past four years
(17 quarters) with an average operating margin of 18 per cent.
In the first quarter 2017, the division achieved an all-time-high
with an operating profit of SEK 53.3 M (37.1) and record mar-
1 Negative SEK 0.9 M pertaining to an increased provision for inventory obsolescence due to changed valuation model to impairment of consolidated goodwill in Edscha Trailer Systems .
TURNOVER BY MARKET
SEK M Q1 2017Full-year
2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016Full-year
2015 Q4 2015 Q3 2015 Q2 2015
Sweden 0.1 0.3 0.1 0.0 0.1 0.1 0.3 0.1 0.0 0.1
Other Nordic countries 0.3 0.9 0.1 0.2 0.3 0.3 0.9 0.1 0.2 0.3
Reported operating margin, % 13.3 5.4 -4.9 11.7 7.0 7.5 5.5 -8.6 6.2 7.7 1 Negative SEK 7.6 M in acquisition-related costs for Henfel Ltda, Brazil, of which negative SEK 6.9 M in the third quarter, negative SEK 0.7 M in the fourth quarter and
negative SEK 5.0 M pertaining to an increased provision for inventory obsolescence due to a changed valuation model in the fourth quarter. 2 A negative SEK 4.8 M in costs pertaining to an action programme to increase profitability.
TURNOVER BY MARKET
SEK M Q1 2017Full-year
2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016Full-year
2015 Q4 2015 Q3 2015 Q2 2015
Sweden 1.5 4.2 0.9 1.3 0.8 1.2 4.4 0.7 1.2 1.4
Other Nordic countries 1.0 5.1 1.3 1.1 1.4 1.3 6.0 1.3 1.9 1.4
Profit after financial items 168.2 1 Negative SEK 7.9 M pertaining to acquisition-related costs attributable to the acquisition of Mobile Climate Control,
and negative SEK 4.8 M pertaining to costs for an action programme to increase profitability in Ringfeder Power Transmission.
Consolidated Balance Sheet – Highlights
SEK M 31 Mar. 2017 31 Mar. 2016 31 Dec. 2016*
Goodwill 1,562.6 327.3 1,570.1
Other intangible assets 353.6 60.3 361.2
Property, plant and equipment 322.8 217.4 326.2
Long-term investments 68.2 17.8 67.9
Total non-current assets 2,307.2 622.8 2,325.4
Inventories 495.0 256.7 481.2
Receivables 566.6 287.0 446.4
Cash on hand, demand deposits and short-term investments 295.2 165.3 276.3
Total current assets 1,356.8 709.0 1,203.9
TOTAL ASSETS 3,664.0 1,331.8 3,529.3
Equity 1,867.1 912.1 1,025.3
Non-current liabilities 1,295.7 233.9 1,299.4
Current liabilities 501.2 185.8 1,204.6
TOTAL EQUITY AND LIABILITIES 3,664.0 1,331.8 3,529.3
*Balance sheet from 31 December 2016 is adjusted with an updated acquisition balance. The changes have not influenced the Group’s equity. Refer to page 12 for more information about the reclassifications that followed the updated acquisition plan.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
16
Changes in consolidated equity
SEK M 3 mon 2017 3 mon 2016 Full-year 2016
Opening equity according to balance sheet at 31 December 1,025.3 871.5 871.5
Total comprehensive income for the period 63.0 40.6 194.5
Contributed capital, new share issue, net 778.8 — —
Dividend — — –40.6
Equity at end of period 1,867.1 912.1 1,025.3
Cash Flow Statement – Highlights
SEK M 3 mon 2017 3 mon 2016 Full-year 2016
Cash flow from operating activities before changes in working capital 123.4 77.4 221.0
Change in working capital –49.1 –22.7 30.0
Cash flow from operating activities 74.3 54.7 251.0
Cash flow from investing activities –7.3 –28.5 –1,295.2
Cash flow from financing activities –48.1 –4.6 1,162.6
Cash flow for the year 18.9 21.6 118.4
Cash and cash equivalents at start of year 276.4 144.0 143.9
Translation difference, cash and cash equivalents –0.1 –0.3 14.0
Cash and cash equivalents at end of period 295.2 165.3 276.4
Unutilised overdraft facilities 100.0 194.5 —
Available cash and cash equivalents 395.2 359.8 276.4
Key figures for Group
SEK M 3 mon 2017 3 mon 2016 Full-year 2016
Profit margin (ROS), % 12.3 13.1 10.9
Return on equity (ROE), % 17.6 15.6 12.7
Return on capital employed (ROCE), % 13.7 19.0 12.7
Equity/assets ratio, % 51.0 68.5 29.11
Equity per outstanding share at end of period, SEK 74.68 72.95 82.01
Cash flow from operating activities, per average outstanding share, SEK 4.25 4.38 20.07
Profit per average outstanding share during the period, SEK 3.80 2.79 9.66
Share price at end of period, SEK 112.75 114.50 160.50
Number of employees, average 1,396 735 764
Number of outstanding shares at end of period (‘000) 25,004 12,502 12,502
Number of own shares at end of period (‘000) 1,192 1,192 1,192
Average number of outstanding shares during the period (‘000) 17,503 12,502 12,502
1 The acquisition balance pertaining to Mobile Climate Control was updated during the first quarter 2017, meaning the consolidated Balance Sheet at 31 December 2016 was also updated.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
17
Parent Company Balance Sheet
SEK M 31 Mar. 2017 31 Mar. 2016 31 Dec. 2016
Other intangible assets 4.4 6.0 5.0
Property, plant and equipment 5.4 7.3 5.8
Long-term investments 2,042.6 661.8 2,042.6
Total non-current assets 2,052.4 675.1 2,053.4
Receivables 505.4 50.0 559.2
Cash on hand, demand deposits and short-term investments 127.3 113.5 91.6
Total current assets 632.7 163.5 650.8
TOTAL ASSETS 2,685.1 838.6 2,704.2
Equity 1,300.3 509.0 532.8
Untaxed reserves 7.8 13.1 7.8
Provisions 12.8 12.7 12.8
Non-current liabilities 898.4 6.1 904.0
Current liabilities 465.8 297.7 1,246.8
TOTAL EQUITY AND LIABILITIES 2,685.1 838.6 2,704.2
Parent Company Income Statement
SEK M 3 mon 2017 3 mon 2016 Full-year 2016
Net turnover 5.6 5.1 26.9
Operating expenses –9.9 –9.8 –39.9
Operating loss –4.3 –4.7 –13.0
Net financial items –7.0 2.2 49.3
Profit/loss after financial items –11.3 –2.5 36.3
Appropriations — — 30.3
Tax — — –3.5
Profit/loss after tax for the period and comprehensive income/loss for the period –11.3 –2.5 63.1
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
18
Alternative performance measuresReconciliation between IFRS and performance measures used
Certain information in this report that is used by company management and analysts to assess the Group’s performance has not
been prepared in accordance with IFRS. Company management believes that this information makes it easier for investors to
analyse the Group’s earnings performance and financial structure. Investors should view this information as a supplement rather
than a replacement of financial reporting in accordance with IFRS.
OPERATING PROFIT AND OPERATING MARGIN BEFORE ITEMS AFFECTING COMPARABILITY
Items affecting comparability refer to material income or expense items that are recognised separately due to the significance of
their character or amount.
Group, SEK M Q1 2017 Q1 2016 Full-year 2016
Net turnover 768.6 371.6 1,543.9
Reported operating profit 102.7 51.1 184.0
Reported operating margin, % 13.4 13.8 11.9
Items affecting comparability –12.7
Operating profit before items affecting comparability 102.7 51.1 196.7
Operating margin before items affecting comparability, % 13.4 13.8 12.7
VBG Truck Equipment
Net turnover 225.8 193.4 757.3
Reported operating profit 53.3 37.1 147.2
Reported operating margin, % 23.6 19.2 19.4
Items affecting comparability — — —
Operating profit before items affecting comparability 53.3 37.1 147.2
Operating margin before items affecting comparability, % 23.6 19.2 19.4
Edscha Trailer Systems
Net turnover 69.5 68.5 270.5
Reported operating profit 11.8 8.8 30.0
Reported operating margin, % 17.0 12.8 11.1
Items affecting comparability — — —
Operating profit before items affecting comparability 11.8 8.8 30.0
Operating margin before items affecting comparability, % 17.0 12.8 11.1
Mobile Climate Control
Net turnover 347.5 — 101.4
Reported operating profit 28.8 — 5.0
Reported operating margin, % 8.3 — 4.9
Items affecting comparability — — —
Operating profit before items affecting comparability 28.8 — 5.0
Operating margin before items affecting comparability, % 8.3 — 5.0
Ringfeder Power Transmission
Net turnover 125.8 109.6 414.7
Reported operating profit 16.7 8.2 24.2
Reported operating margin, % 13.3 7.5 5.8
Items affecting comparability — — –4.8
Operating profit before items affecting comparability 16.7 8.2 29.0
Operating margin before items affecting comparability, % 13.3 7.5 7.0
VBG GROUP INTERIM REPORT JANUARY–MARCH 2017
19
ACTUAL ORGANIC GROWTH
Growth in net turnover excluding effects of structural changes, meaning acquired or divested operations, and excluding currency