1 7 Q 4 VBG Group AB (publ) in Vänersborg is the Parent Company of an international engi- neering Group with wholly owned companies in Europe, North America, Brazil, South Africa, Australia, India and China. The Group’s operations are divided into four divi- sions — 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 3,002 M Consolidated sales almost doubled to SEK 3,002.0 M (1,543.9) in the full-year 2017. SEK 351 M Operating profit increased to SEK 351.1 M (184.0) in the full-year 2017. VBG GROUP YEAR-END REPORT 2017
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VBG GROUP YEAR-END REPORT 2017 · VBG GROUP INTERIM REPORT YEAR-END REPORT 2017 1 Fourth quarter of 2017: • The Group’s net sales increased by 58.6 per cent to SEK 737.0 M (464.7)
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17Q4VBG Group AB (publ) in Vänersborg is the Parent Company of an international engi-neering Group with wholly owned companies in Europe, North America, Brazil, South Africa, Australia, India and China. The Group’s operations are divided into four divi-sions — 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 3,002 MConsolidated sales almost doubled to SEK 3,002.0 M (1,543.9) in the full-year 2017.
SEK 351MOperating profit increased to SEK 351.1 M (184.0) in the full-year 2017.
VBG GROUPYEAR-END REPORT2017
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
1
Fourth quarter of 2017:• The Group’s net sales increased by 58.6 per cent to SEK 737.0 M (464.7)• Adjusted operating profit increased to SEK 75.7 M (45.3).• Items affecting comparability during the quarter amounted to a negative
SEK 7.5 M (neg: 12.7) relating to reorganisation costs in Edscha Trailer Systems.• Reported operating profit increased to SEK 68.2 M (32.6).• Profit after financial items amounted to SEK 52.7 M (21.7).• The acquisition balance pertaining to Mobile Climate Control was adjusted
and adopted as final.
Full-year 2017:• The Group’s annual sales increased by 94.4 per cent to SEK 3,002.0 M (1,543.9).• Adjusted operating profit increased to SEK 358.6 M (196.7).• Items affecting comparability for the year amounted to a net expense of SEK 7.5 M
(expense: 12.7) relating to reorganisation costs in Edscha Trailer Systems.• Reported operating profit increased to SEK 351.1 M (184.0).• Profit after financial items amounted to SEK 315.6 M (168.2).• The Group’s profit after tax amounted to SEK 220.5 M (120.8).• Earnings per average number of outstanding shares amounted to SEK 9.62 (9.66). • The Board of Directors proposes an increased dividend to SEK 81.3 M (43.8), which after the
implemented new share issue in 2017 is equivalent to SEK 3.25 per outstanding share (1.75).• Fully subscribed preferential share issue 1:1 was completed in the first quarter, doubling the
number of outstanding shares and contributed SEK 779 M net in equity to the company, after deductions for issue expenses.
Profit after financial items 52.7 21.7 315.6 168.2
Profit margin, % 7.1 4.7 10.5 10.9
Profit after tax 30.7 9.6 220.5 120.8
Earnings per share, SEK 1.34 0.76 9.62 9.66
Return on capital employed (ROCE), % 10.7 12.7
Return on equity (ROE), % 12.3 12.7
Equity/assets ratio, % 54.7 28.7 54.7 28.7
Average number of outstanding shares during the period (‘000) 25,004 12,502 22,920 12,502
Number of outstanding shares 25,004 12,502 25,004 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 an action programme to increase profitability in Ringfeder Power Transmission.
2 Negative SEK 7.5 M pertaining to costs in connection with the reorganisation relating to Edscha Trailer System.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
2
THIS IS THE VBG GROUP
VBG Group AB (publ), domiciled 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 operations are divided into four divisions — VBG Truck
Equipment, Edscha Trailer Systems, Mobile Climate Control and
Ringfeder Power Transmission — with products that are mar-
keted 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 seg-
ments, acquire, own and develop industrial companies in busi-
ness-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.
Goals
• > 10 per cent in average annual sales 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, which entails
the approval and follow-up of divisional targets and strategies,
providing support in the form of industrial expertise and iden-
tifying and conducting strategic 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 Kreft-
ing. This ownership structure has historically provided a high
degree of financial 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 31 wholly owned companies in 16 countries and more than 1,500 employees in 18 countries worldwide.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
3
SALES BY DIVISION SALES BY MARKET
Sweden, 8%
Other Nordic countries, 6%
Germany, 16%
Other European countries, 17%
North America, 45%
Brazil, 2%
Australia/New Zealand, 3%
Rest of world, 3%
VBG Truck Equipment, 28%
Edscha Trailer Systems, 9%
Mobile Climate Control, 47%
Ringfeder Power Transmission, 16%
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 and energy and shock absorption. The division’s brands are Ringfeder, Tschan, Henfel and Gerwah. The custom-ers are found in such widely disparate industrial markets as con-struction, machinery, power and mining.
MOBILE CLIMATE CONTROL
By virtue of its own strong brand, the division is an indus-try-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.
Overall, 2017 was a strong year for the VBG Group. One mile-
stone is that we reported more than SEK 3 billion in sales. This
is naturally due to the inclusion of Mobile Climate Control in
the Group for the entire financial year, but another key con-
tributing factor was the highly favourable underlying eco-
nomic trend in several of the segments where we operate,
both in Europe and the USA. One example is the growth in
both freight and passenger transport by road and thereby
an increase in the number of bus and heavy truck registra-
tions, which is positive for our vehicle-related operations.
Ringfeder Power Transmission, our supplier of compo-
nents for power transmission and shock absorption, also
experienced a healthy economic trend during the year,
and increased both sales and profit.
VBG Truck Equipment – another record year
With an operating margin of 20.8 per cent for the
fourth quarter, VBG Truck Equipment continued to
perform at the same high level as earlier in the
year. The division reported its highest sales and
operating profit ever and has achieved another
record year. This is noteworthy, given that VBG
Truck Equipment is continuing to invest
resources in developing the business and
establishing operations in new markets.
The new organisa-tional structure will create the conditions to continue to develop both the business and long-term strategies.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
4
AN INTENSE YEARWITH POSITIVE RESULTS
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
5
I am positive to the divisional management team’s decision –
in a period of strong economic growth it is important to have
the courage to invest and accept the cost in order to build for
the future.
Edscha Trailer Systems – creating good conditions for
improved profitability
Edscha Trailer Systems had a slower end to the year, and a
slightly weaker quarter compared with the year-earlier period.
The division’s earnings were also charged with a nonrecurring
cost that arose in conjunction with the appointment of a new
divisional management team. However, I take a positive view
of the future, as the division has now overcome its earlier sup-
plier problems and the division management team also worked
hard and successfully to streamline operations and cut costs in
recent years. Together with rising demand from several of the
division’s largest customers, this means Edscha Trailer Systems
is developing the right conditions to achieve better profitability
moving forward.
Mobile Climate Control – positive sales and continued
investments in the future
Mobile Climate Control reported stable sales in the fourth
quarter. During the year, the division has seen consistently
strong markets and a healthy economy and has used the
favourable situation to invest in product development and
sales and established operations in both new customer seg-
ments and in new geographic markets, which is in line with
our plans, though it does have a short-term impact on profit.
In Mobile Climate Control’s North American market, the seg-
ment for buses stands out with a continued positive perfor-
mance. The division has secured important contracts and also
market shares in this segment during the year. In Europe,
Mobile Climate Control’s business in the off-road vehicles seg-
ment noted the strongest development during the quarter,
and again we can see rising demand.
Ringfeder Power Transmission – strong fourth quarter
Ringfeder Power Transmission noted strong earnings and profit-
ability growth during the year, which was largely a result of the
favourable performance of the German export industry. The
fourth quarter followed a similar line as earlier quarters during
the year, and was therefore one of the strongest fourth quarters
for the division. The past year was characterised by intensive
work with restructuring of operations to increase profitability.
This work has taken longer than we had anticipated, but I
expect us to complete the final restructuring measures during
the first half of the year. During 2017, there were also a number
of nonrecurring costs associated with restructuring work, but
following the action programme, Ringfeder Power Transmission
is set for higher profitability moving forward.
VBG Group — focus on profitability and growth
During the year’s fourth quarter, we conducted a reorganisa-
tion and established a new Group management. The new
Group Management has begun working and I am convinced
that this organisational structure will create good conditions to
continue to develop both the business and the Group’s long-
term strategies, to achieve our targets for financial growth and
profitability.
The full-year 2017 was marked by a healthy economic trend
in almost all of the Group’s markets and overall we also have
high capacity utilisation in our factories, which is positive,
though we must also then handle the typical consequences, in
the form of rising pressure, higher raw material prices and lon-
ger delivery times from suppliers. There is no indication of any
changes in the economic outlook for 2018 and considering the
risk spread in the Group today, in terms of both geography
and customers, we are probably less sensitive to cyclical fluc-
tuations than in previous years.
2017 was also an intense year when we worked to “solidify
the Group financially” following the acquisition of Mobile Cli-
mate Control and we now have the financial situation we had
planned for. In 2018, we will continue to develop the business,
focusing on profitability and growth.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
6
GROUP TREND
Sales and earnings, fourth quarter of 2017
Sales of SEK 737.0 M (464.7) were 58.6 per cent higher com-
pared with the fourth quarter of 2016. Excluding the annual
effect of the acquired volume of SEK 221.1 M with respect to
Mobile Climate Control, volume change was 11.0 per cent.
After exchange rate changes, actual organic growth was 11.9
per cent (12.3).
The Group’s adjusted operating profit rose to SEK 75.7 M
(45.3), with an adjusted operating margin of 10.3 per cent
(9.7). The quarter was charged with an item affecting compa-
rability in the form of a reorganisation cost of SEK 7.5 M relat-
ing to Edscha Trailer Systems (cost of SEK 12.7 M for the
year-earlier period).
Accordingly, the Group’s reported operating profit for the
quarter amounted to SEK 68.2 M (32.6), with an operating
margin of 9.2 per cent (7.0). Sales and operating profit of the
individual divisions are presented on pages 9–15.
Group-wide overheads in the Parent Company that have
not been allocated to the divisions totalled SEK 7.3 M (14.5).
Net interest expense for the quarter was SEK 8.3 M
(expense: 6.9) and the fourth-quarter currency effect on the
Swedish companies’ foreign-currency denominated credits
resulted in a negative currency effect of SEK 7.1 M (neg: 3.8).
Taken together, this resulted in a net financial expense of SEK
15.5 M (expense: 10.7). The reason for the increased financial
expenses was the loans taken in conjunction with the acquisi-
tion of Mobile Climate Control. Profit after financial items
amounted to SEK 52.7 M (21.7). Profit after tax totalled SEK
30.7 M (9.6) and earnings per share amounted to 1.34 (0.76).
NET SALES, SEK M PROFIT/LOSS AFTER FINANCIAL ITEMS, SEK M
Average number of outstanding shares 22,920 25,004 25,004 25,004 17,503 12,502 12,502 12,502 12,502 12,502
Number of outstanding shares 25,004 25,004 25,004 25,004 25,004 12,502 12,502 12,502 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 an action programme to increase profitability.
2 Negative SEK 7.5 M in connection with reorganisation costs relating to Edscha Trailer Systems.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
7
Sales and earnings, full-year 2017
Consolidated sales for the full year increased 94.4 per cent to
SEK 3,002.0 M (1,543.9). Excluding the annual effect of the
acquired volumes amounting to SEK 1,309.2 M pertaining to
Mobile Climate Control, the change in volume was 9.6 per
cent. Adjusted for currency effects, the actual organic growth
was 8.4 per cent (5.4).
The Group’s adjusted operating profit rose to SEK 358.6 M
(196.7), with an operating margin of 11.9 per cent (12.7). The
Group was impacted by an item affecting comparability of a
negative SEK 7.5 M (neg: 12.7) in connection with reorganisa-
tion costs for Edscha Trailer Systems. Accordingly, the reported
full-year operating profit amounted to SEK 351.1 M (184.0),
with a margin of 11.7 per cent (11.9).
The acquired company Mobile Climate Control contributed
SEK 127.9 M (5.0) to the operating profit.
The consolidated operating profit included Group-wide
overheads of SEK 20.5 M (22.5) that were not allocated
among the various divisions.
Net interest expense for the full-year amounted to SEK 40.1
M (expense: 10.8) and the Swedish companies’ foreign-cur-
rency denominated credits were impacted positively by a cur-
rency effect of SEK 4.7 M (neg: 5.0). Taken together, this
resulted in a net financial expense of SEK 35.5 M (expense:
15.8), where increased costs were the result of loans taken in
conjunction with the acquisition of Mobile Climate Control.
Accordingly, profit after financial items amounted to SEK
315.6 M (168.2), with a margin of 10.5 per cent (10.9).
Profit after tax totalled SEK 220.5 M (120.8), corresponding
to earnings per average number of outstanding shares of SEK
9.62 (9.66).
Return on capital employed declined to 10.7 per cent (12.7),
while return on equity was 12.3 per cent (12.7). The Group’s
equity/assets ratio increased from the end of last year to 54.7
per cent (28.7).
Tax expense
The tax expense for the year was SEK 95.1 M (47.4), of which
current tax accounted for SEK 77.4 M (50.9) and deferred tax
for a positive SEK 17.7 M (neg: 3.5). The tax expense for the
year corresponds to a tax rate for the Group of 30.1 per cent
(28.2). Part of the cost for deferred tax is the result of the
reduction in corporate taxation in the USA in 2018, meaning
the value of the Group’s deferred tax assets in the USA were
impaired by SEK 3.8 M.
Capital expenditures
The Group’s new capital expenditures for the year amounted
to SEK 54.5 M (SEK 45.9 M excluding acquired subsidiaries).
Financial position
Profit after tax for the full-year amounted to SEK 220.5 M
(120.8) and other comprehensive income to SEK 24.2 M
(73.7), which comprises exchange rate changes and the impact
of the translation of defined-benefit pension plans, the com-
bined effect of which resulted in comprehensive income of
SEK 244.7 M (194.5). The new share issue carried out gener-
ated SEK 778.6 M, net. After the payment of dividends total-
ling SEK 43.8 M (40.6) to the shareholders, consolidated
equity increased to SEK 2,004.9 M (1,025.3).
The equity/assets ratio increased during the year to 54.7 per
cent (28.7).
Cash and cash equivalents increased by SEK 45.0 M (132.5)
during the year to SEK 321.4 M (276.4) at year end. In addi-
tion, there were unutilised overdraft facilities of SEK 100.0 M
(0.0), giving the Group an available liquidity of SEK 421.4 M
(276.4) at year-end.
The Group’s interest-bearing net debt (including pension lia-
bility) declined by SEK 950.2 M during the year to SEK 742.3
M (1,692.4) at year-end. The reason for the reduction is the
result of new share issue that contributed SEK 778.6 M in new
capital to the Group, net, which was used to pay off the
bridge loan of SEK 800 M taken during the acquisition of
Mobile Climate Control in November 2016.
The ratio of interest-bearing net debt to equity was 0.37 at
31 December 2017 (1.65 at 31 December 2016) and the ratio
of net debt to consolidated operating profit before deprecia-
tion/amortisation and impairment (EBITDA) was 1.73 (7.31).
The acquisition of Mobile Climate Control resulted in pre-
liminary goodwill of SEK 1,446.7 M in 2016. In the first quar-
ter of 2017, the preliminary acquisition balance was updated,
which is described in the interim report for January-March
2017. The acquisition balance was preliminary pending the
completion of the process to identify and determine the fair
value of intangible assets separate from goodwill. During the
fourth quarter, the final acquisition balance was confirmed,
meaning the Mobile Climate Control brand with indefinite
useful life was set at SEK 400 M and customer relationships
with an expected useful life of 20 years was valued at SEK
396.9 M. Taken together, the final acquisition balance means
the goodwill value attributable to Mobile Climate Control has
been reduced by SEK 681.8 M to SEK 764.9 M on the acquisi-
tion date. The final acquisition plan is recognised retroactively
on the acquisition date, meaning the Group’s balance sheet
and key figures at 31 December 2016 and subsequent periods
have been updated. The final acquisition balance has not
affected the value of amortisation on acquisition-related
intangible assets recognised for earlier periods in 2016 and
2017.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
8
The Group’s remaining goodwill declined SEK 3.4 M due to
exchange rate changes. The net effect of this was the Group’s
goodwill at the end of the year amounted to SEK 1,118.9 M
(1,122.3), which in relation to equity amounted to a ratio of
0.56 (1.09).
Cash flow
Cash flow from operating activities declined to SEK 243.7 M
(251.0). Paid capital expenditures during the year amounted to
SEK 60.3 M (SEK 1,295.2 M, where SEK 1,263.9 M pertained
to the acquisition of Mobile Climate Control Group Holding
AB in 2016). During the year, the Group’s total borrowings
and current financial liability declined SEK 873.9 M (increase
of SEK 1,203.3 M), net, with a dividend payment to the share-
holders of SEK 43.8 M (40.6). The new share issue carried out
contributed SEK 778.7 M in new capital, which overall resulted
in a negative cash flow from financing activities of SEK 139.0
M (pos: 1,162.6). Consequently, net cash flow for the year was
SEK 44.4 M (118.4).
Outlook for 2018
The Group makes no forecast.
Personnel
At 31 December 2017, there were 1,502 employees in the VBG
Group (1,401), of which 785 (688) in Mobile Climate Control.
Of the total number of employees, 211 were in Sweden (201).
The Group employed an average of 1,446 persons (764) in
2017, representing an increase of 89.0 per cent. Of these, 207
(205) were active in Sweden. During 2017, the cost of salaries
and social security contributions increased 72.6 per cent, of
which the acquired company Mobile Climate Control
accounted for 70.2 per cent, to SEK 717.1 M (415.5).
Per share data
In the first quarter, an oversubscribed new share issue was
completed, 1:1 of outstanding Series A shares (1,220,000
shares) and Series B shares (11,282,024 shares) with preferen-
tial rights for existing shareholders, whereby VBG Group
received SEK 778.6 M net after issue expenses. The total num-
ber of outstanding shares (Series A and Series B) increased
accordingly from 12,502,024 shares to 25,004,048 shares. The
issue price was set at SEK 64 per share for both Series A and
Series B shares.
For the full-year 2017, the average number of outstanding
shares is estimated at 22,920,377 shares (12,502,024 for the
year-earlier period) and the number of outstanding shares at
the end of the year was 25,004,048 shares (12,502,024). This
has consequently impacted the key figures for the year.
Earnings per share for the year (average number) amounted
to SEK 9.62 (9.66). At 31 December 2017, equity per share
(total outstanding) was SEK 80.18, compared with SEK 82.01
one year earlier.
At the end of the year, the share price was SEK 132.00,
which corresponds to a market capitalisation of SEK 3,301 M,
compared to a share price of SEK 160.50 and market capital-
isation of SEK 2,006 M one year earlier.
The number of shareholders declined by 110 in the fourth
quarter, while the number increased by 75 for the full-year,
and amounted to 4,670 at 31 December 2017 (4,595).
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
9
VBG TRUCK EQUIPMENT
Full-year 2017:• Sales rose 10.5 per cent to SEK 836.7 M (757.3).• Reported operating profit increased to SEK 169.8 M
Research and development costs –27.9 –17.9 –106.4 –46.8
Other operating income and expenses –0.8 1.9 –24.9 2.7
Operating profit 68.2 32.4 351.1 184.0
Net financial items –15.5 –10.7 –35.5 –15.8
Profit after financial items 52.7 21.7 315.6 168.2
Tax –22.0 –12.2 –95.1 –47.4
Profit for the period 30.7 9.5 220.5 120.8
Profit for the period attributable to Parent Company shareholders 30.7 9.5 220.5 120.8
Depreciation and amortisation charged to profit –20.0 –14.7 –77.2 –47.6
Other comprehensive income
Profit for the period 30.7 9.5 220.5 120.8
Items that will not be reversed in the Income Statement
Effect of translation of defined-benefit pension plans, net after tax –5.8 –2.1 –5.8 –2.1
Other items
Items that may later be reversed in the Income Statement
Translation differences pertaining to foreign operations 86.1 12.0 28.8 70.7
Translation differences pertaining to hedge accounting for net investments in foreign operations 1.2 4.7 1.2 5.1
Other comprehensive income, net after tax 81.5 14.6 24.2 73.7
Comprehensive income for the period 112.2 24.1 244.7 194.5
Comprehensive income for the period attributable to Parent Com-pany shareholders 112.2 24.1 244.7 194.5
Earnings per share, basic and diluted, SEK 1.23 0.76 9.62 9.66
Number of outstanding shares at end of period (‘000) 25,004 12,502 25,004 12,502
Average number of shares during the period 25,004 12,502 22,920 12,502
Number of own shares at end of period 1,192 1,192 1,192 1,192
1 Includes acquisition-related costs attributable to the acquisition of Mobile Climate Control of a negative SEK 7.9 M, and a negative SEK 4.8 M pertaining to an action programme at Ringfeder Power Transmission to increase profitability.
2 Negative SEK 7.5 M in connection with reorganisation costs relating to Edscha Trailer System.
1 Negative SEK 7.9 M pertaining to acquisition-related costs attributable to the acquisition of Mobile Climate Control. 2 Negative SEK 4.8 M pertaining to an action programme to increase profitability. 3 Negative SEK 7.5 M in connection with reorganisation costs relating to Edscha Trailer System.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
20
Changes in consolidated equity SEK M Full-year 2017 Full-year 2016
Opening equity according to balance sheet at 31 December 1,025.3 871.5
Total comprehensive income for the period 244.7 194.5
Contributed capital, new share issue, net 778.6 —
Dividend –43.8 –40.6
Equity at end of period 2,004.9 1,025.3
Cash Flow Statement – HighlightsSEK M Full-year 2017 Full-year 2016
Cash flow from operating activities before changes in working capital 274.3 221.0
Change in working capital –30.5 30.0
Cash flow from operating activities 243.7 251.0
Cash flow from investing activities –60.3 –1,295.2
Cash flow from financing activities –139.0 1,162.6
Cash flow for the period 44.4 118.4
Cash and cash equivalents at start of year 276.4 143.9
Translation difference, cash and cash equivalents 0.6 14.0
Cash and cash equivalents at end of period 321.4 276.4
Unutilised overdraft facilities 100.0 —
Available cash and cash equivalents 421.4 276.4
Key figures for Group SEK M Full-year 2017 Full-year 2016
Profit margin (ROS), % 10.5 10.9
Return on equity (ROE), % 12.3 12.7
Return on capital employed (ROCE), % 10.7 12.7
Equity/assets ratio, % 54.7 28.7
Equity per outstanding share at end of period, SEK 80.18 82.01
Cash flow from operating activities, per average outstanding share, SEK 10.64 20.08
Profit per average outstanding share during the period, SEK 9.62 9.66
Share price at end of period, SEK 132.00 160.50
Number of employees, average 1,446 764
Number of outstanding shares at end of period (‘000) 25,004 12,502
Number of own shares at end of period (‘000) 1,192 1,192
Average number of outstanding shares during the period (‘000) 22,920 12,502
Consolidated Balance Sheet – HighlightsSEK M
31 December 2017
31 December 20161
Goodwill 1,118.9 1,122.3
Other intangible assets 827.9 858.0
Property, plant and equipment 346.5 326.2
Long-term investments 48.3 67.9
Total non-current assets 2,341.5 2,374.4
Inventories 496.0 479.7
Receivables 504.6 446.4
Cash on hand, demand deposits and short-term investments 321.4 276.4
Total current assets 1,322.0 1,202.5
TOTAL ASSETS 3,663.6 3,576.9
Equity 2,004.9 1,025.3
Non-current liabilities 1,219.3 1,346.9
Current liabilities 439.4 1,204.6
TOTAL EQUITY AND LIABILITIES 3,663.6 3,576.9
1 The balance sheet as per 31 December 2016 was adjusted after the acquisition balance relating to the acquisition of Mobile Climate Control. The changes have not influenced the Group’s equity. Refer to page 16 for more information about the reclassifications that followed the final acquisition plan.
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
21
Parent Company Balance Sheet
SEK M Full-year 2017 Full-year 2016
Other intangible assets 3.0 5.0
Property, plant and equipment 1.1 5.8
Long-term investments 1,992.6 2,042.5
Total non-current assets 1,996.7 2,053.3
Receivables 471.1 562.7
Cash on hand, demand deposits and short-term investments 119.4 91.7
Total current assets 590.5 654.4
TOTAL ASSETS 2,587.2 2,707.7
Equity 1,282.8 532.8
Untaxed reserves 4.8 7.8
Provisions 12.7 12.8
Non-current liabilities 795.7 904.0
Current liabilities 491.3 1,250.3
TOTAL EQUITY AND LIABILITIES 2,587.2 2,707.7
Parent Company Income Statement
SEK M Full-year 2017 Full-year 2016
Net sales 29.2 26.9
Operating expenses –45.9 –39.8
Operating profit –16.7 –12.9
Net financial items –19.1 49.2
Profit/loss after financial items –35.8 36.3
Appropriations 51.8 30.2
Tax –0.8 –3.5
Profit for the period 15.2 63.0
VBG GROUP INTERIM REPORT YEAR-END REPORT 2017
22
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