Reporting period January – March
· Net sales increased by 17.3 per cent to SEK 2,051 (1,748) million. Net sales
grew organically by 8.9 per cent
· EBITA increased by 13.3 per cent to SEK 274 (242) million
· The EBITA margin increased to 13.4 (13.8) per cent
· Profit before tax grew by 8.8 per cent to SEK 243 (223) million
· Net profit increased by 10.3 per cent to SEK 182 (165) million
· Earnings per share increased by 9.6 per cent to SEK 1.99 (1.81)
· Cash flow from operating activities was continuously strong and increased by
25.6%
to SEK 144 (115) million
· During the quarter seven operations were acquired with total sales of
approximately SEK 870 million
Summary of financial performance
QUARTER Rolling FULL
1 12 YEAR
months
SEK million 2016 2015 change 2016 change 2015
Net sales 2,051 1,748 17.3% 8,204 3.8% 7,901
EBITA 274 242 13.3% 1 218 2.7% 1,186
EBITA margin 13.4% 13.8% -0.4 14.8% -0.2 15.0%
Profit before tax 243 223 8.8% 1 102 1.8% 1,082
Net profit 182 165 10.3% 842 2.1% 825
Earnings per 1.99 1.81 9.6% 9.09 2.0% 8.91
share[1] (http://file:///C:/U
sers/Admin/Documents/Klienter
/Lifco/Rapporter/Q116/Interim
%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn1)
Return on capital 19.6% 17.8% 1.8 19.6% -0.3 19.9%
employed[2] (http://file:///C
:/Users/Admin/Documents/Klien
ter/Lifco/Rapporter/Q116/Inte
rim%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn2)
Return on capital employed, 128% 112% 16,0 128% 5,0 123%
excl.
goodwill[3] (http://file:///C
:/Users/Admin/Documents/Klien
ter/Lifco/Rapporter/Q116/Inte
rim%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn3)
COMMENTS FROM THE CEO
Sales increased by 17.3 per cent to SEK 2,051 (1,748) million in the first
quarter, driven by both organic growth and acquisitions. The organic growth
amounted to 8.9 per cent. Sales increased in the Demolition & Tools and Systems
Solutions business areas, while the Dental business area was somewhat affected
by Easter falling in the first quarter this year. The market situation continued
to be generally good for all business areas.
EBITA increased by 13.3 per cent to SEK 274 (242) million and the EBITA margin
was 13.4 (13.8) per cent. Earnings per share increased by 9.6 per cent during
the quarter and amounted to SEK 1.99 (1.81).
The Dental business area had a somewhat weaker first quarter in terms of profit,
mainly due to Easter falling during the period. Profitability in the Demolition
& Tools and Systems Solutions business areas increased significantly during the
quarter.
Cash flow from operating activities was continuously strong and increased by
25.6 per cent during the period to SEK 144 (115) million.
We have continued to deliver our strategy of investing in market-leading niche
businesses with the potential to deliver sustainable profit growth and robust
cash flows. During the first quarter Lifco has consolidated seven new operations
with total sales of approximately SEK 870 million. For more information, see
pages 7 and 14. Together the acquisitions will have a positive impact on Lifco's
profit and financial position during the current year. Even after these
acquisitions, we have significant financial scope for new acquisitions as net
debt in relation to EBITDA is at the lower end of the range of our objective,
which is a net debt of two to three times EBITDA.
Fredrik Karlsson
CEO
DEVELOPMENT OF THE GROUP JANUARY – MARCH
Sales increased by 17.3 per cent to SEK 2,051 (1,748) million, driven by organic
growth and acquisitions. Acquisitions accounted for 9.8 per cent, organic growth
for 8.9 per cent and changes in exchange rates had a negative impact of 1.4 per
cent. Organic growth was strong in the Demolition & Tools and Systems Solutions
business areas. During the quarter seven new operations were consolidated.
EBITA increased by 13.3 per cent to SEK 274 (242) million and the EBITA margin
was 13.4 (13.8) per cent. EBITA was positively impacted by organic growth and
acquisitions. Changes in exchange rates had a slightly negative impact on the
EBITA margin of 1.3 percentage points. During the quarter, 40 per cent of the
EBITA was generated in EUR, 26 per cent in SEK, 10 per cent in NOK, 9 per cent
in DKK, 6 per cent in GBP, 3 per cent in USD and 6 per cent in other currencies.
Net financial items were SEK -8 (2) million.
Profit before tax increased by 8.8 per cent to SEK 243 (223) million. Net profit
increased by 10.3 per cent to SEK 182 (165) million
Average capital employed excluding goodwill decreased by SEK 14 million from 31
December 2015 to SEK 952 (966) million. EBITA in relation to average capital
employed excluding goodwill increased to 128 (123) per cent at the end of the
quarter. The improvement was due chiefly to higher profits and good control of
capital employed.
The Group’s net interest-bearing debt increased by SEK 413 million from 31 March
2015 to SEK
2,779 (2,366) million. The net debt/equity ratio was 0.7 (0.7) at the end of the
quarter, and the ratio of net debt to EBITDA was 2.1 (2.2).
Cash flow from operating activities improved to SEK 144 (115) million. The
continuously strong cash flow was due chiefly to higher profits and good control
of capital employed. Cash flow from investing activities was SEK -971 (-433)
million, which is mainly attributable to acquisitions.
FINANCIAL PERFORMANCE – BUSINESS AREAS
Dental
QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2016 2015 change 2016 change 2015
Net sales 868 894 -2.9% 3,410 -0.7% 3,435
EBITA 155 170 -8.6% 600 -2.4% 614
EBITA margin 17.9% 19.0% -1.1 17.6% -0.3 17.9%
The companies in the Dental business area are leading suppliers of consumables,
equipment and technical services for dentists across Europe. Lifco sells dental
technology to dentists in the Nordic countries and Germany, and develops and
sells medical record systems in Denmark and Sweden. A number of smaller
manufacturing companies are also included in the business area, which produce
such items as disinfectant fluids, saliva ejectors and endodontic products.
Dental's sales decreased by 2.9 per cent to SEK 868 (894) million during the
quarter. The change was due to Easter falling earlier in 2016 than in 2015, and
because NetDental was sold in the second quarter of 2015. Sales were boosted in
the quarter by the acquisitions in 2015 of Top Dental,
J.H. Orsing, Smilodent and Preventum Partner.
EBITA amounted to SEK 155 (170) million during the quarter and the EBITA margin
was 17.9 (19.0) per cent.
The dental market is generally stable. The results for individual companies in
Lifco’s Dental business may, in any individual quarter, be influenced by
significant fluctuations in exchange rates, calendar effects (such as Easter),
won or lost consumables contracts in procurements for the public sector or major
private sector customers, as well as fluctuations in the delivery of equipment.
During the quarter, the fact that Easter was early in 2016 had a certain
negative impact on sales and profits.
Lifco announced two acquisitions within Dental during the first quarter: the
German dental technology laboratory Dens Esthetix and the German dental company
Praezimed. Dens Esthetix had sales of approximately EUR 1.4 million in 2015 and
has 14 employees. Praezimed conducts servicing and repairs dental instruments
used by dentists and dental laboratories in Germany. Praezimed had sales of
approximately EUR 2.5 million in 2015 and has 15 employees. Both operations were
consolidated in February. The acquisition of endodontic products which was
announced in December 2015 was consolidated in January. Endodontic products had
sales of approximately SEK 10 million in 2015.
Demolition & Tools
QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2015 2015 change 2016 change 2015
Net sales 384 329 16.6% 1,628 3.5% 1,574
EBITA 79 66 18.9% 408 3.2% 396
EBITA margin 20.6% 20.2% 0.4 25.1% 0.0 25.1%
Demolition & Tools develops, manufactures and sells equipment for the
construction and demolition industry. Lifco is the world’s leading supplier of
demolition robots and crane attachments. The Company is also one of the leading
global suppliers of excavator attachments. The operations are divided into two
divisions – Demolition Robots and Crane & Excavator Attachments – which are of
roughly equal size in terms of sales.
Net profit increased by 16.6 per cent to SEK 384 (329) million during the
quarter due to strong organic growth. The market situation was generally good
and sales increased in the majority of markets. Germany and China experienced
the most substantial growth among the Company’s major markets.
EBITA increased by 18.9 per cent to SEK 79 (66) million during the quarter. The
EBITA margin improved by 0.4 percentage points, to 20.6 (20.2) per cent. Lifco
works continuously to improve its product portfolios, strengthen its
distribution systems and improve productivity in the Group’s companies. The
impact of such measures on profit will fluctuate from one quarter to the next,
however.
Systems Solutions
QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2015 2015 change 2016 change 2015
Net sales 799 525 52.2% 3,166 9.5% 2,892
EBITA 64 27 134% 300 13.8% 263
EBITA margin 8.0% 5.2% 2.8 9.5% 0.4 9.1%
Through its operating entities, Systems Solutions is active in industries
offering systems solutions. Systems Solutions is divided into five divisions:
Interiors for Service Vehicles, Contract Manufacturing, Environmental
Technology, Sawmill Equipment and Construction Materials. The divisions are
leading players in their geographic markets. Following the acquisition of Cenika
in January 2016, Relining changed its name to Construction Materials.
Sales in Systems Solutions increased by 52.2 per cent to SEK 799 (525) million
during the quarter due to organic growth and acquisitions. All divisions saw
increased sales during the period.
EBITA increased by 134 per cent to SEK 64 (27) million during the quarter. All
of the divisions improved profit during the period and the EBITA margin
increased to 8.0 (5.2) per cent. Lifco works continuously to improve its product
portfolios, strengthen its distribution systems and improve productivity in the
Group’s companies. The impact of such measures on profit will fluctuate from one
quarter to the next, however.
Interiors for Service Vehicles grew both in terms of sales and profitability
during the quarter thanks to increased sales activities and an improved product
range. The EBITA margin is not yet completely satisfactory, however.
Contract Manufacturing had a positive start to the year with a stable market
situation. The division’s customers include world-leading manufacturers of
equipment for the pharmaceutical industry as well as manufacturers of railway
equipment, which require a high standard of quality as regards delivery
flexibility and documentation. At the end of December, Lifco announced the
acquisition of the Norwegian company Auto-Maskin, a leading supplier of marine
diesel engine control units. Auto-Maskin had sales of approximately NOK 130
million in 2015 and has 65 employees. The operations were consolidated in
January 2016.
Environmental Technology had a good start to the year. In January Redoma
Recycling, which is a Swedish company specialising in the development and
manufacture of recycling machinery for small and medium-sized cables, was
consolidated. Redoma Recycling's sales amounted to approximately SEK 25 million
in 2015, and the company has eight employees. In February, the acquisition of
the Norwegian company TMC/Nessco, a world leading supplier of marine compressors
and spare parts, was announced. The company had sales of approximately NOK 525
million in 2015 and TMC/Nessco has more than 90 employees. The operations were
consolidated in March.
Sawmill Equipment achieved good sales and profit growth during the quarter.
Sales of pellet systems were particularly strong and the division has attained a
leading position in the Nordic, Baltic and Russian markets.
Construction Materials (formerly Relining) had satisfactory growth in sales and
profit during the quarter following the acquisition of a majority interest in
the Norwegian company Cenika. Cenika, which was consolidated in February, is a
leading supplier of low voltage electrical equipment. The company had sales of
approximately NOK 160 million in 2015 and Cenika has around 30 employees.
Lifco owns 70 per cent of shares in the Icelandic subsidiary Proline Iceland EFT
and 70 per cent of shares in the Spanish subsidiary Proline Relining SL which
are part of the Construction Materials division. In 2015, the two companies
together generated 0.04 per cent of the Group’s total sales. In light of the
unsatisfactory development of both companies Lifco has reached an agreement
regarding the transfer of Lifco's shares in the companies to minority
shareholders in Proline Iceland EFT and Proline Relining SL. The minority
shareholders are employees of the respective companies. In conjunction with the
transfer of Lifco's shares in Proline Iceland EFT and Proline Relining SL, the
purchasers accept full responsibility for each company's net debt. The transfer
is not expected to give rise to any capital loss or capital gain for Lifco. The
Board of Directors considers that the purchase prices and transfer conditions in
general are fair from a financial perspective for Lifco's shareholders. The
Board of Directors considers that the transfer of the shares in Proline Iceland
EFT and Proline Relining SL is of marginal importance for Lifco. The transfer of
the shares in Proline Iceland EFT and Proline Relining SL is dependent on the
Lifco Annual General Meeting approving the transfer in accordance with the
provisions of Chapter 16 of the Swedish Companies Act.
ACQUISITIONS
During the first quarter of 2016, Lifco has consolidated the following
acquisitions:
+------------------------+-------------------+-----------------+--------+-------
--+
|Consolidated as of month|Acquisitions |Business area |Sales
|Employees|
+------------------------+-------------------+-----------------+--------+-------
--+
|January |Auto-Maskin |Systems Solutions|NOK 130m|65
|
+------------------------+-------------------+-----------------+--------+-------
--+
|January |Endodontic products|Dental |SEK 10m |-
|
+------------------------+-------------------+-----------------+--------+-------
--+
|January |Redoma Recycling |Systems Solutions|SEK 25m |8
|
+------------------------+-------------------+-----------------+--------+-------
--+
|February |Cenika |Systems Solutions|NOK 160m|30
|
+------------------------+-------------------+-----------------+--------+-------
--+
|February |Dens Esthetix |Dental |EUR 1.4m|14
|
+------------------------+-------------------+-----------------+--------+-------
--+
|February |Praezimed |Dental |EUR 2.5m|15
|
+------------------------+-------------------+-----------------+--------+-------
--+
|March |TMC/Nessco |Systems Solutions|NOK 525m|90
|
+------------------------+-------------------+-----------------+--------+-------
--+
Further information on the acquisitions is provided on page 14 of the interim
report. The figures presented for sales and number of employees refer to the
estimated annual sales and the number of employees at the acquisition date.
Together the acquisitions will have a positive impact on Lifco's profit and
financial position during the current year.
OTHER FINANCIAL INFORMATION
Employees
The average number of employees was 3,561 (3,302) in the first quarter. At the
end of the period, there were 3,571 (3,320) employees. During the period,
approximately 220 employees were gained through acquisitions.
Events after the end of the reporting period
No significant events for the Group have occurred since the end of the reporting
period.
Related-party transactions
No significant transactions with related parties took place during the period.
Risks and uncertainties
The risk factors of the greatest significance to Lifco are the competitive
landscape, structural changes in the market and the general economic
development. Lifco is also exposed to financial risks such as currency risk,
interest rate risk, credit risk and counterparty risk.
The Parent Company is affected by the aforementioned risks and uncertainties
through its function as owner of the subsidiaries.
For more information on Lifco's risks and risk management please refer to the
2015 annual report.
Accounting principles
This Interim Report has been prepared in accordance with IAS 34 Interim
Financial Reporting and the Swedish Annual Accounts Act. The Parent Company
applies the Annual Accounts Act and RFR 2. The accounting policies adopted are
consistent with those applied for the 2015 Annual Report and should be read in
conjunction with that Annual Report.
The report has not been reviewed by the company's auditors.
BOARD OF DIRECTORS AFFIRMATION
The Board of Directors and Chief Executive Officer certify that the Interim
Report provides a true and fair view of the Parent Company’s and Group’s
operations, financial positions and results and that it describes the
significant risks and uncertainties to which the Parent Company and companies
included in the Group are exposed.
Enköping, 12 May 2016
Carl BennetChairman of
the Board
Gabriel Ulrika DellbyBoard Erik Gabrielson
DanielssonBoard member Board Member
member
Ulf Fredrik Annika NorlundDirector,
GrunanderBoard KarlssonPresident and Employee Representative
member CEO, Board Member
Johan Axel WachtmeisterBoard Peter WibergDeputy
SternDeputy member director,Employee
Chairman Representative
FINANCIAL CALENDAR
The report for the second quarter of 2016 will be published on 15 July 2016 at
07:30 am.
The report for the third quarter of 2016 will be published on 25 October 2016.
The year-end report for 2016 will be published on 15 February 2017.
FURTHER INFORMATION
Media and investor relations: Åse Lindskog, ir@lifco.se, tel: +46 (0) 730 24 48
72
TELECONFERENCE
Media representatives and analysts are welcome to join a teleconference in which
CEO Fredrik Karlsson, CFO Therése Hoffman and Head of Business Area Dental Per
Waldemarson will present the Interim Report. The presentation is expected to
last approximately 20 minutes, after which there will be the opportunity to ask
questions.
Time and date: 12 May at 1 pm
Link to the presentation:
http://cloud.magneetto.com/wonderland/2016_0512_Lifco_Q1_Report/view (https://we
b
mail.lifco.se/owa/redir.aspx?REF=EwF6P_eINtNvNo4Z2vtCjkDswWd
-8FYwjmYtmisOO9DQmSUsBmnTCAFodHRwOi8vY2xvdWQubWFnbmVldHRvLmNvbS93b25kZXJsYW5kLzI
w
MTZfMDUxMl9MaWZjb19RMV9SZXBvcnQvdmlldw..)
Telephone number:
Sweden +46 8 566 426 90
US: +1 855 753 2236
UK: +44 203 008 9801
LIFCO IN BRIEF
Lifco acquires and develops market-leading niche businesses with the potential
to deliver sustainable profit growth and robust cash flows. The Group has three
business areas: Dental, Demolition & Tools and Systems Solutions. Lifco is
guided by a clear philosophy centred on long-term growth, a focus on
profitability and a strongly decentralised organisation. The Lifco Group
comprises 133 companies in 28 countries. In 2015 the Group reported EBITA of SEK
1,186 million on sales of around SEK 7.9 billion, with an EBITA margin of 15.0
per cent. Read more at www.lifco.se
+----------------------------------------------------------------------------+
|This information was made public at 11:00 am on Monday, 12 May in accordance|
|with the Swedish Securities Market Act, the Swedish Financial Instruments |
|Trading Act and/or the regulations of Nasdaq Stockholm. |
+----------------------------------------------------------------------------+
CONDENSED CONSOLIDATED INCOME STATEMENT
QUARTER 1 FULL YEAR
SEK million 2016 2015 change 2015
Net sales 2,051 1,748 17.3% 7,901
Cost of goods sold -1,262 - 1,074 17.5% -4,865
Gross profit 789 674 17.1% 3,036
Selling expenses -183 -139 31.5% -625
Administrative expenses -342 -294 16.2% -1,205
Development expenses -21 -15 38.1% -73
Other income and expenses 8 -5 -263% -26
Operating profit/loss 252 221 13.8% 1,107
Net financial items -8 2 -464% -25
Profit before tax 243 223 8.8% 1,082
Tax -61 -58 4.7% -257
Net profit 182 165 10.3% 825
Profit attributable to:
Shareholders in the Parent Company 180 165 9.6% 810
Non-controlling interests 2 1 188% 15
Earnings per share for the period, 1.99 1.81 9.6% 8.91
attributable to shareholders in the Parent
Company
EBITA 274 242 13.3% 1,186
Depreciation of tangible assets 22 18 20.6% 81
Amortisation of intangible assets 26 15 66.8% 76
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
QUARTER 1 FULL YEAR
SEK million 2016 2015 change 2015
Net profit 182 165 10.3% 825
Other comprehensive income
Items that can later be reversed in profit or 1814 --39 --137% --92
loss:Hedging of net investmentTranslation
differences
Tax related to other comprehensive income -4 - - -
Total comprehensive income for the period 210 127 66.2% 733
Comprehensive income attributable to:
Shareholders in the Parent Company 208 126 65.3% 720
Non-controlling interests 2 1 258% 13
210 127 66.2% 733
SEGMENT OVERVIEW
Lifco’s operations are monitored and evaluated by the CEO and resources are
allocated based on information from the three operating segments: Dental,
Demolition & Tools and Systems Solutions. The defined quantitative limits are
exceeded only by Dental and Demolition & Tools. One further operating segment,
designated Systems Solutions, is presented. This operating segment consists of a
merger of those divisions which have similar economic characteristics and which
do not individually meet the defined quantitative limits. These divisions are
Interiors for Service Vehicles, Contract Manufacturing, Environmental
Technology, Sawmill Equipment and Construction Materials (formerly Relining).
NET SALES TO EXTERNAL CUSTOMERS
No sales are made between the segments.
QUARTER 1 Rolling 12 months FULL YEAR
SEK million 2016 2015 change 2016 change 2015
Dental 868 894 -2.9% 3,410 -0.7% 3,435
Demolition & Tools 384 329 16.6% 1,628 3.5% 1,574
Systems Solutions 799 525 52.2% 3,166 9.5% 2,892
Group 2,051 1,748 17.3% 8,204 3.8% 7,901
EBITA
A breakdown of results by segment is made up to and including EBITA. EBITA is
reconciled against profit before tax in accordance with the following table:
QUARTER Rolling FULL
1 12 YEAR
months
SEK million 2015 2015 change 2016 change 2015
Dental 155 170 -8.6% 600 -2.4% 614
Demolition & Tools 79 66 18.9% 408 3.2% 396
Systems Solutions 64 27 134% 300 13.8% 263
Central Group functions -24 -22 10.6% -90 2.6% -87
EBITA 274 242 13.3% 1,218 2.7% 1,186
Amortisation of intangible assets -23 -13 75.5% -76 15.2% -66
arising in conjunction with
acquisitions
Restructuring, integration and - -8 -5 -63.8% -13
acquisition costs -108%
Net financial items -8 2 -464% -35 42.8% -25
Profit before tax 243 223 8.8% 1,102 1.8% 1,082
CONDENSED CONSOLIDATED BALANCE SHEET
SEK million 31/03/2016 31/03/2015 31/12/2015
ASSETS
Intangible assets 5,983 4,972 5,010
Tangible assets 437 414 417
Financial fixed assets 88 55 87
Inventories 1,135 1,026 960
Accounts receivable – trade 1,026 900 863
Current receivables 266 246 257
Cash and cash equivalents 438 624 464
TOTAL ASSETS 9,373 8,237 8,058
EQUITY AND LIABILITIES
Equity 4,174 3,602 3,964
Non-current interest-bearing 1,084 91 1,103
liabilities incl. pension
provisions
Other non-current liabilities 489 316 371
and provisions
Current interest-bearing 2,150 2,946 1,341
liabilities
Accounts payable – trade 549 436 370
Other current liabilities 927 846 909
TOTAL EQUITY AND LIABILITIES 9,373 8,237 8,058
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to shareholders in the Parent Company
SEK million 31/03/2016 31/03/2015 31/12/2015
Opening equity 3,939 3,455 3,455
Comprehensive income for the period 208 126 720
Dividend - - -236
Closing equity 4,147 3,581 3,939
Equity attributable to:
Shareholders in the Parent Company 4,147 3,581 3,939
Non-controlling interests 27 20 25
4,174 3,602 3,964
CONDENSED CASH FLOW STATEMENT
QUARTER 1 FULL YEAR
SEK million 2016 2015 2015
Operating activities
Operating profit/loss 251 221 1,107
Non-cash items 35 34 157
Interest and financial items, net -8 2 -25
Tax paid -88 -78 -239
Cash flow before changes in working capital 190 178 1,000
Changes in working capital
Inventories -62 -87 -59
Current receivables 18 -112 -113
Current liabilities -2 135 120
Cash flow from operating activities 144 115 948
Business combinations and divestments, net -948 -364 -573
Net investments in property, plant and equipment -22 -14 -82
Net investments in intangible assets -1 -55 -9
Cash flow from investing activities -971 -433 -664
Borrowings/repayment of borrowings, net 797 411 -88
Anticipated/paid dividend -3 -9 -252
Cash flow from financing activities 794 402 -340
Cash flow for the period -33 84 -56
Cash and cash equivalents at the beginning of the period 464 536 536
Translation differences 7 3 -16
Cash and cash equivalents at the end of the period 438 624 464
++
||
++
ACQUISITIONS IN 2016
In the first quarter seven new operations were consolidated which are included
in the preliminary acquisitions purchase price allocation. The acquisitions
include all of the shares in Auto-Maskin, Praezimed and TMC/Nessco and a
majority shareholding in Cenika. The acquisitions of Redoma Recycling, Dens
Esthetix and endodontic products referred to the assets and liabilities of the
company.
The preliminary purchase price allocation covers all acquisitions made during
the year.
Costs related to the acquisition of SEK 12 million are included in the
administrative expenses in the Group's consolidated income statement for the
first quarter of 2016. If the operations had been consolidated from 1 January
2016 the Group's net sales would have been positively impacted by approximately
SEK 95 million. The effect of the acquisitions on profit would have been
positive if the companies had been consolidated from 1 January 2016.
Acquired net assets
Net assets, SEK million Reported value Value Fair
adjustment value
Trademarks, customer relationships, licences 1 550 551
Tangible assets 19 - 19
Accounts receivable and other receivables 275 -1 274
Accounts payable and other liabilities -195 -122 -317
Cash and cash equivalents 111 - 111
Net assets 211 427 638
Goodwill 420 420
Total net assets 211 847 1,058
Effect on cash flow, SEK million
Purchase consideration 1,058
Cash and cash equivalents in the acquired -111
companies
Consideration paid relating to acquisitions from 1
previous years
Total effect on cash 948
flow
FINANCIAL INSTRUMENTS
CARRYING AMOUNT FAIR VALUE
SEK million 31/03/2016 31/03/2015 31/03/2016 31/03/2015
Loans and receivables
Accounts receivable – 1,026 900 1,026 900
trade
Other non-current 3 3 3 3
financial receivables
Cash and cash 438 624 438 624
equivalents
Total 1,467 1,527 1,467 1,527
Liabilities at fair
value through profit or
loss
Other liabilities 16 30 16 30
Other financial
liabilities
Interest-bearing 3,178 2,950 3,178 2,950
borrowings
Accounts payable – trade 549 436 549 436
Other liabilities - 18 - 18
Total 3,743 3,433 3,743 3,433
Financial instruments at fair value are classified into different levels
depending on how fair value has been determined. All financial instruments at
fair value in the Lifco Group have been classified as level 3, i.e. non
-observable input data. The fair value of short-term borrowings is equal to the
carrying amount, as the discount effect is insignificant. Other liabilities
classified as financial instruments refer to mandatory call/put options relating
to non-controlling interests. Changes in financial liabilities attributable to
mandatory call/put options are recognised in equity.
KEY PERFORMANCE INDICATORS
+++++++---------------------------+
||||||| |
+++++++---------------------------+
|ROLLING TWELVE MONTHS TO201631 |
|MARCH201531 DEC201531 MARCHNet |
|sales, SEK |
|million8,2047,9017,012Change in |
|sales, %3.816.23.1EBITA, SEK |
|million1,2181,186994EBITA margin,|
|%14.815.014.2EBITDA, SEK |
|million1,3131,2771,073EBITDA |
|margin, %16.016.215.3Capital |
|employed, SEK |
|million6,2035,9655,593Capital |
|employed excl. goodwill and other|
|intangible assets, SEK |
|million952966891Return on capital|
|employed, %19.619.917.8Return on |
|capital employed, excl. goodwill,|
|%128123112Return on equity, |
|%21.722.118.1Net interest-bearing|
|debt, SEK |
|million2,7791,9502,366Net |
|debt/equity ratio0.70.50.7Net |
|debt/EBITDA2.11.52.2Equity/assets|
|ratio, %44.549.243.7Number of |
|shares, |
|thousand90,84390,84390,843Average|
|number of employees |
|3,5613,3693,302 |
+++++++---------------------------+
CONDENSED PARENT COMPANY INCOME STATEMENT
QUARTER 1 FULL YEAR
SEK million 2016 2015 2015
Administrative expenses -27 -25 -104
Other operating income - - 84
Operating profit/loss -27 -25 -20
Net financial 12 219 307
items[4] (http://file:///C:/Users/Admin/Documents/Klient
er/Lifco/Rapporter/Q116/Interim%20Report%20Jan
-Mar%202016_FINAL.docx#_ftn4)
Profit after financial items -15 194 287
Appropriations - - -12
Tax 5 1 -8
Net profit for the period -10 195 267
CONDENSED PARENT COMPANY BALANCE SHEET
SEK million 31/03/2016 31/12/2015
ASSETS
Tangible fixed assets 0 0
Financial fixed assets 3,385 3,369
Current receivables 2,946 2,223
Cash and cash equivalents 186 307
TOTAL ASSETS 6,517 5,899
EQUITY AND LIABILITIES
Equity 2,176 2,186
Untaxed reservesProvisions 322 324
Non-current interest-bearing liabilities 1,042 1,031
Current interest-bearing liabilities 2,124 1,330
Current non-interest-bearing liabilities 1,141 1,316
TOTAL EQUITY AND LIABILITIES 6,517 5,899
Pledged assets - -
Contingent liabilities 131 92
DEFINITIONS
Return on equity Net profit attributable to shareholders in
the Parent Company and non-controlling
interests divided by average equity
Return on capital employed EBITA divided by average capital employed
Return on capital employed excl. EBITA divided by average capital employed
goodwill and other intangible excluding goodwill and other intangible
assets assets
EBIT Operating profit/Profit before financial
items and taxes
EBITA Operating profit before amortisation of
intangible assets arising in conjunction
with acquisitions, and restructuring,
integration and acquisition costs
EBITA margin EBITA divided by net sales
EBITDA Operating profit before depreciation,
amortisation and restructuring,
integration and acquisition costs
EBITDA margin EBITDA divided by net sales
Net debt/equity ratio Net interest-bearing debt divided by
equity
Earnings per share Net profit attributable to shareholders in
the Parent Company divided by the average
number of outstanding shares
Net interest-bearing debt Liabilities to credit institutions
including interest-bearing pension
provisions less cash and cash equivalents
Equity ratio, % Equity divided by total assets (balance
sheet total)
Capital employed Total assets less cash and cash
equivalents, interest-bearing pension
provisions and non-interest-bearing
liabilities, calculated on a rolling
twelve-month basis
Capital employed excl. goodwill Total assets less cash and cash
and other intangible assets equivalents, interest-bearing pension
provisions, non-interest-bearing
liabilities, goodwill and other intangible
assets, calculated on a rolling twelve
-month basis
----------------------------------------------------------------------
[1] (http://file:///C:/Users/Admin/Documents/Klienter/Lifco/Rapporter/Q116/Inter
i
m%20Report%20Jan-Mar%202016_FINAL.docx#_ftnref1) Attributable to shareholders in
the Parent Company
[2] (http://file:///C:/Users/Admin/Documents/Klienter/Lifco/Rapporter/Q116/Inter
i
m%20Report%20Jan-Mar%202016_FINAL.docx#_ftnref2) Rolling twelve months
[3] (http://file:///C:/Users/Admin/Documents/Klienter/Lifco/Rapporter/Q116/Inter
i
m%20Report%20Jan-Mar%202016_FINAL.docx#_ftnref3) Rolling twelve months
[4] (http://file:///C:/Users/Admin/Documents/Klienter/Lifco/Rapporter/Q116/Inter
i
m%20Report%20Jan-Mar%202016_FINAL.docx#_ftnref4) Net financial items for the
first quarter 2015 include dividends from subsidiaries which in 2016 are
expected to be paid during the second quarter.
++
||
++
INTERIM REPORT JANUARY - MARCH 2016
| Source: Lifco AB
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