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VBG GROUPINTERIM REPORTJANUARY–MARCH 2019
13.7%Operating margin for the first quarter
was 13.7% (12.9).
SEK 990 MConsolidated sales increased to SEK
989.6 M (817.7) in the first quarter.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
1
• Consolidated sales increased by 21.0% to SEK 989.6 M (817.7).
• Operating profit rose to SEK 135.5 M (105.2).
• Operating margin increased to 13.7% (12.9).
• Profit after financial items increased to SEK 121.7 M (85.6).
• Restating in accordance with IFRS 16 had a positive impact on operating profit of SEK 0.4 M and a negative impact on profit after tax of SEK 1.2 M. The equity/assets ratio decreased 2.2 percentage points and the balance sheet total increased by SEK 166.8 M.
INTERIM REPORTJANUARY–MARCH 2019
KEY FIGURES
Group, SEK M Q1 2019 Q1 2018 Full-year 2018
Net sales 989.6 817.7 3,492.4
Operating profit before depreciation/amortization (EBITDA) 163.0 124.4 497.4
Operating profit before amortization (EBITA) 143.6 113.0 449.3
Operating profit (EBIT) 135.5 105.2 417.6
Operating profit after financial items (EBT) 121.7 85.6 373.1
Profit after tax 89.0 63.5 273.0
Earnings per share, SEK 3.56 2.54 10.92
Cash flow from operating activities 100.1 73.0 253.6
ROE (cumulative), % 15.6 12.3 12.8
ROCE (cumulative), % 15.7 13.5 13.2
Equity/assets ratio, % 54.2 54.1 56.7
Interest-bearing net debt/EBITDA 1.40 1.60 1.30
Average number of employees 1,635 1,485 1,561
Average number of shares during the period (‘000) 25,004 25,004 25,004
Number of shares outstanding (‘000) 25,004 25,004 25,004
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
2
1,661 EMPLOYEES
31WHOLLY OWNED
COMPANIES
18COUNTRIES
THIS IS THE VBG GROUP
VBG Group AB (publ), domiciled in Vänersborg, is the Parent
Company of an international industrial 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 intro-
duced 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 shareholders will
be offered attractive value growth.
Goals
• > 10% in average annual sales growth over a five-year
period, of which 5% attributable to actual organic growth
and 5% to structural growth.
• > 12% in average operating margin (EBIT) 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
set up by the Group’s founder, Herman Krefting. This owner-
ship 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
The VBG Group has 31 wholly owned companies in 18 countries and more than 1,600 employees in 18 countries worldwide.
Own companiesImporters/Agents
VBG Truck EquipmentEdscha Trailer SystemsMobile Climate ControlRingfeder Power Transmission
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
3
SALES BY DIVISION SALES BY MARKET
Sweden, 8%
Other Nordic countries, 6%
Germany, 13%
Other European countries, 17%
North America, 47%
Brazil, 2%
Australia/New Zealand, 2%
China, 1%
Rest of world, 3%
VBG Truck Equipment, 27%
Edscha Trailer Systems, 8%
Mobile Climate Control, 52%
Ringfeder Power Transmission, 13%
This is the VBG Group, cont.
DIVISIONS BRANDS
Our 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. The division accounts for more than 50% of the global market via the Ringfeder and VBG brands. The division also has Onspot — automatic tire 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 sliding roofs to tarpaulin-covered trailers and tipper vehicles, as well as sliding bow roofs for rail-way wagons. The division accounts for approximately 40% of the global market for sliding roofs via the Edscha Trailer Sys-tems and Sesam brands.
RINGFEDER POWER TRANSMISSION
By virtue of its own strong brands, the division is a recognized 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 defense vehicles.
VBG Group’s markets remain, as a whole, strong and earnings
for the first quarter of the year have exceeded even my own
expectations. Historically, this quarter is usually the Group’s
best, but the business structure we have in place after the
acquisition of Mobile Climate Control has enabled us to report
more uniform sales and profit throughout the year, as this
division normally has its highest sales in the second and third
quarters. However, this year Mobile Climate Control reported
strong sales and profitability from the very outset of the year,
meaning we can report our best quarter ever, with both record
sales and operating profit. We therefore almost exceeded the
SEK 1 billion mark in sales already in the first quarter.
One important event for VBG Group during the quarter was
the acquisition by VBG Truck Equipment of BPW’s drawbar
assemblies business for commercial vehicles. This was a minor
acquisition financially, but very important from a strategic
perspective. Over the past number of years, VBG Truck
Equipment has endeavoured to adjust its business model to
the European market to correspond to the model we are
already successfully using in the Nordic region. The business
model is based on offering systems solutions to customers
rather than individual products. The acquisition gives us access
to products that make the division’s system offering complete
and further reinforces our position in the European market.
However, I do not expect to see a noticeable financial impact
until the end of 2019 or early next year, given that VBG Truck
Equipment will gradually take over the operations over the
course of the year and its immediate focus is on product and
knowledge transfer.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
4
OUR BEST QUARTEREVER
We almost exceeded the SEK 1 billion mark in sales already in the first quarter.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
5
VBG Truck Equipment — achieves milestone in Brazil
During the quarter, VBG Truck Equipment reported higher sales
and largely unchanged margins compared with the year-earlier
period. The venture in Brazil is still at an early stage, but the
division has completed its first customer deliveries during the
quarter, which is highly positive. When Ringfeder Power
Transmission acquired the Brazilian company Henfel in 2015,
we viewed our move into the Brazilian market as a long-term
strategic investment for the entire VBG Group and the fact
that VBG Truck Equipment is now delivering products to this
market is a milestone.
Edscha Trailer Systems — margins remain healthy
Compared with last year’s first quarter, Edscha Trailer Systems
has reported a decrease in sales. This is partly because the
division has not had any deliveries to customers in the railway
segment during the quarter, and weaker demand from the
division’s two main trailer customers. The division has, on the
other hand, noted excellent and profitable sales to its other
customers, which has contributed to favorable margins. I am
pleased to observe that Edscha Trailer Systems is continuing to
demonstrate stability.
Mobile Climate Control — good work improves profitability
Mobile Climate Control’s North American market remains
strong, in both the buses and off-road vehicle segments. This
has contributed to sustained high growth and in the past six
months, the division’s operations worked intensely to expand
capacity to meet rising demand from customers. We can
already see the results of this hard work, in the form of a clear
improvement in profitability.
It is worth mentioning that the division’s operations in India,
that were established in September last year, have performed
positively. From relatively small sales volumes in the early
months to a growing number of orders and customers during
this and previous quarters.
Ringfeder Power Transmission — stability and profitability
Ringfeder Power Transmission reported favourable sales
during the quarter and a slightly improvement in profitability.
We can now see that the division has a much more stable
delivery process following the restructuring that has taken
place in recent years. In addition to greater customer satisfac-
tion, this has reduced costs in the division’s supply chain.
VBG Group — agreements that offer the potential for growth
The three-year financing agreement we signed in conjunction
with the acquisition of Mobile Climate Control will expire at
the end of the current year. Negotiations about a new long-
term agreement are in progress and are expected to be com-
pleted during the second quarter of 2019. The new agreement
will offer us the right conditions to create both organic and
structural growth.
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
6
GROUP TREND
Sales and earnings
Sales of SEK 989.6 M (817.7) were 21.0% higher compared
with the first quarter of 2018. Adjusted for currency effects,
the actual organic growth was 14.7%.
The Group’s operating profit increased to SEK 135.5 M (105.2),
with an operating margin of 13.7% (12.9). Sales and earnings of
the individual divisions are presented on pages 8–15.
Group-wide overheads in the Parent Company that have
not been allocated to the divisions totaled SEK 3.7 M (2.9).
Net interest expense was SEK 9.7 M (expense: 8.7) and the
quarter’s currency effect on the Parent Company’s financial
liabilities’ in foreign currency resulted in a negative currency
effect of SEK 4.1 M (neg: 10.9). Accordingly, profit after finan-
cial items amounted to SEK 121.7 M (85.6), and profit after
tax to SEK 89.1 M (63.5). Earnings per share rose to SEK 3.56
(2.54), calculated on the average number of outstanding
shares for the period, 25,004,048 (25,004,048).
Capital expenditures
The Group’s new capital expenditures for the year amounted
to SEK 15.3 M (8.5), of which SEK 1.0 M pertains to purchases
in accordance with IFRS 16.
NET SALES, SEK M PROFIT AFTER FINANCIAL ITEMS, SEK M
0
150
75
225
300
375
450
0
60
40
20
100
80
120
20192016 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
Quarterly figures Rolling 4 quarters
0
800
1,600
2,400
4,000
3,200
2019Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
2016 2017
Quarterly figures Rolling 4 quarters
0
400
200
600
800
1,000
2018
Group, SEK MQ1
2019Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Net sales 989.6 3 492.4 868.8 874.8 931.2 817.7 3,002.0 737.0 719.2 777.2 768.6
Operating profit before deprecia-tion/amortization (EBITDA) 163.0 497.4 108.3 127.4 137.3 124.4 428.3 88.1 100.7 117.6 121.9
Operating profit before amortization (EBITA) 143.6 449.3 95.8 115.2 125.3 113.0 382.8 76.1 89.6 106.4 110.6
Operating profit (EBIT) 135.5 417.6 87.9 107.3 117.3 105.2 351.1 68.2 81.7 98.5 102.7
Operating margin (EBIT), % 13.7 12.0 10.1 12.3 12.6 12.9 11.7 9.2 11.4 12.7 13.4
Operating profit after financial items (EBT) 121.7 373.1 81.1 100.9 105.6 85.6 315.6 52.7 75.1 93.6 94.2
Profit after tax 89.0 273.0 60.5 71.2 77.8 63.5 220.5 30.6 53.2 70.1 66.6
Earnings per share, SEK 3.56 10.92 2.42 2.85 3.11 2.54 9.62 1.23 2.13 2.80 3.80
Cash flow from operating activities 100.1 253.6 46.6 97.0 37.0 73.0 243.7 87.5 43.4 38.5 74.3
ROE (cumulative), % 15.6 12.8 12.8 13.4 13.4 12.3 12.3 12.3 14.0 15.8 17.6
ROCE (cumulative), % 15.7 13.2 13.2 14.0 14.1 13.5 10.7 10.7 11.0 11.0 13.7
Equity/assets ratio, % 54.2 56.7 56.7 54.9 53.9 54.1 54.7 54.7 53.0 51.7 51.0
EBITDA, effect of IFRS 16 8.1
EBITA, effect of IFRS 16 0.4
EBIT, effect of IFRS 16 0.4
Profit after tax, effect of IFRS 16 –1.2
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
7
Financial position
Profit after tax for the period amounted to SEK 89.0 M (63.5)
and other comprehensive income to SEK 34.9 M (51.9), which
resulted in comprehensive income of SEK 123.9 M (115.4).
Accordingly, consolidated equity increased to SEK 2,350.3 M
during the period (2,226.5 at year-end).
The equity/assets ratio declined slightly during the period to
54.2% (56.7 at year-end) of which 2.2 percentage points was
a result of IFRS 16. Cash and cash equivalents increased by
SEK 85.5 M during the period to SEK 456.9 M at the end of
the period (371.4 at year-end). In addition, there were unuti-
lized overdraft facilities of SEK 100.0 M, which means the
Group at the end of March had available liquidity of SEK 556.9 M
(471.4 at year-end).
The Group’s interest-bearing net debt (including pension
liability) grew by SEK 102.8 M during the period, where the
reason for the increase is due to the additional lease liability,
to SEK 750.7 M at the end of the period (647.9 at year-end).
The ratio of interest-bearing net debt to equity was 0.32 at
March 31, 2019 (0.29 at December 31, 2018) and the ratio of
net debt to consolidated operating profit before depreciation/
amortization and impairment (EBITDA on a rolling four-quar-
ter basis) was 1.09 (1.30 at year-end).
The Group’s goodwill at the end of the first quarter amounted
to SEK 1,136.4 M (1,128.6 at year-end), which in relation to
equity amounted to a ratio of 0.48 (0.51 at year-end).
Cash flow
Cash flow from operating activities increased during the first
quarter to SEK 100.1 M (73.0). Paid capital expenditures during
the period amounted to SEK 13.2 M (14.9). The Group’s total
borrowings and current financial liability decreased during the
quarter by a net of SEK 5.2 M (increase: 3.6). Consequently,
net cash flow for the year was SEK 81.3 M (61.7).
Personnel
At March 31, 2019, there were 1,661 employees in the VBG
Group (1,573 at year-end), of which 217 (213) in Sweden.
During the first quarter of 2019, the Group employed an aver-
age of 1,635 persons (1,485 during the year-earlier period).
Of these, 217 (207) were active in Sweden. The cost of sala-
ries and social security contributions in the quarter was SEK
217.5 M (189.6).
IFRS 16
The effect of IFRS 16 in the quarter consisted of an increase in
the balance sheet of SEK 166.8 M, a positive impact on EBIT
of SEK 0.4 M and an adverse impact on profit after tax of SEK
1.2 M. As a consequence, a number of key figures were also
impacted. The largest share of the change in the balance
sheet, SEK 166.8 M, is attributable to properties, SEK 148.3 M,
of which SEK 112.0 M relates to Mobile Climate Control. SEK
0.8 M of the adverse impact on profit after tax of SEK 1.2 M is
attributable to Mobile Climate Control. The effect on EBITDA
was a positive SEK 8.1 M, as lease costs from an IFRS 16 per-
spective become amortization of the right-of-use relating to
the lease assets. Total amortization regarding IFRS 16 assets
was SEK 7.7 M in the quarter. Overall, IFRS 16 has a minor
impact on the Group as a whole. See page 24 for more com-
parisons of the impact of IFRS 16.
Per share data
Earnings per share increased to SEK 3.56 (2.54).
At March 31, 2019, equity per share (total outstanding
shares at the end of the period) was SEK 94.0, compared with
SEK 89.04 at year-end and SEK 84.80 at the end of March in
the preceding year.
At the end of the quarter, the share price was SEK 138.60,
which corresponds to a market capitalization of SEK 3,466 M,
compared a share price of SEK 126.80 and market capitaliza-
tion of SEK 3,170 M at year-end. The number of shareholders
increased by 12 during the first quarter to 4,296 (4,308 at
year-end).
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
8
VBG TRUCK EQUIPMENT
SALES/EARNINGS
SEK MQ1
2019
Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018
Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Net sales 266.5 921.0 244.7 205.1 231.8 239.4 836.7 223.1 185.5 202.3 225.8
EBITDA 68.7 191.4 51.0 36.9 42.0 61.5 184.6 50.4 37.4 39.8 57.0
EBITA 63.1 175.5 47.0 32.9 38.0 57.5 170.8 46.7 34.1 36.3 53.6
EBITA margin, % 23.7 19.0 19.2 16.1 16.4 24.0 20.4 20.9 18.4 18.1 23.7
Operating profit (EBIT) 63.0 175.2 46.9 32.9 37.9 57.5 169.8 46.5 33.9 36.1 53.3
Operating margin (EBIT), % 23.6 19.0 19.2 16.0 16.4 24.0 20.3 20.8 18.3 17.8 23.6
EBITDA, effect of IFRS 16 1.8
EBITA, effect of IFRS 16 0.0
EBIT, effect of IFRS 16 0.0
SALES BY MARKET
SEK MQ1
2019
Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018
Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Sweden 70.8 234.6 58.7 48.9 62.1 64.9 199.0 48.7 44.0 50.3 56.0
Other Nordic countries 43.2 151.8 36.8 38.4 38.2 38.3 135.9 32.6 28.0 34.3 41.0
Germany 35.8 127.5 29.4 25.9 35.4 36.8 118.8 29.8 28.6 27.2 33.2
Other European countries 66.9 212.8 52.8 49.7 56.5 53.6 196.5 47.0 44.7 50.3 54.5
North America 25.3 99.4 35.9 24.0 19.2 20.3 92.0 28.6 20.5 18.8 24.1
Australia/New Zealand 16.2 61.5 16.0 13.1 10.0 22.4 67.7 22.9 16.3 15.1 13.4
China 3.3 14.4 8.0 3.1 2.8 0.6 1.6 1.6 0.0 0.0 0.0
Rest of world 5.0 19.1 7.1 2.0 7.6 2.5 25.2 12.0 3.4 6.3 3.6
VBG Truck Equipment 266.5 921.0 244.7 205.1 231.8 239.4 836.7 223.1 185.5 202.3 225.8
FIRST QUARTER 2019
• Sales rose 11.3% to SEK 266.5 M (239.4).
• EBITA increased to SEK 63.1 M (57.5), with an EBITA margin of 23.7% (24.0).
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
9
Sales and earnings
VBG Truck Equipment continued to perform very strongly and
the first quarter of the year was the best ever in terms of sales
and EBITA. Sales for the quarter grew 11.3% year-on-year to
SEK 266.5 M (239.4). Adjusted for exchange rate changes,
where the average USD rate between the quarters strength-
ened 13.2% and the EUR, which is a more important currency
for the division, strengthened 4.6%, the actual organic growth
was 7.4%.
EBITA, operating profit excluding amortization of intangible
assets, for VBG Truck Equipment rose year-on-year to SEK 63.1 M
(57.5) with the EBITA margin remaining high at 23.7% (24.0).
During the period, the division’s working capital increased
SEK 12.5 M to SEK 226.3 M (213.8) and, in addition to prop-
erty, plant and equipment of SEK 106.9 M, of which SEK 20.7 M
in increased assets in accordance with IFRS 16, operating capi-
tal amounted to SEK 333.2 M (300.7 at year-end) at the end
of March.
The division’s return on operating capital (ROOC), where
EBITDA on a rolling four-quarter basis is put in relation to
average operating capital for the same period, was 65.8%
(64.5% full-year 2018).
Investments and depreciation/amortization
VBG Truck Equipment’s investments during the first quarter
amounted to SEK 2.8 M (2.1), of which SEK 0.3 M pertains to
purchases in accordance with IFRS 16. Depreciation/amortiza-
tion during the quarter totaled SEK 5.6 M (4.0), of which SEK
1.8 M pertains to depreciation/amortization in accordance
with IFRS 16.
Personnel
During the first quarter, VBG Truck Equipment employed an
average of 277 persons (267 during the year-earlier period).
At March 31, 2019, 279 persons were employed in the division
(278 on March 31, 2018), compared with 278 employees at
year-end. Personnel costs for the quarter amounted to SEK
54.3 M (51.8), resulting in a cost per employee of SEK 196.0
thousand (194.0).
0
400
200
600
800
1,000
0
60
120
180
240
300
20192016 2017 2018
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
Quarterly figures Rolling 4 quarters
0
50
100
200
150
0
40
20
80
60
20192016 2017 2018
0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
Quarterly figures Rolling 4 quarters
NET SALES, SEK M EBITA, SEK M
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
10
EDSCHA TRAILER SYSTEMS
SALES/EARNINGS
SEK MQ1
2019
Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018
Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Net sales 76.0 322.1 71.5 73.3 88.6 88.7 259.7 63.4 57.5 69.3 69.5
EBITDA 13.2 48.9 9.9 8.8 15.9 14.2 24.2 –0.1 3.4 10.2 10.7
EBITA 11.2 43.5 8.5 7.4 14.6 13.0 18.8 –1.5 2.0 8.8 9.4
EBITA margin, % 14.7 13.5 11.9 10.1 16.4 14.6 7.2 –2.4 3.5 12.8 13.5
Operating profit/loss (EBIT) 9.9 38.4 7.3 6.1 13.3 11.7 13.6 –2.8 0.7 7.6 8.2
Operating margin (EBIT), % 13.0 11.9 10.1 8.4 15.0 13.2 5.3 –4.5 1.2 10.9 11.8
EBITDA, effect of IFRS 16 0.7
EBITA, effect of IFRS 16 0.0
EBIT, effect of IFRS 16 0.0
SALES BY MARKET
SEK MQ1
2019
Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018
Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Sweden 0.0 0.2 0.1 0.0 0.1 0.1 0.2 0.0 0.1 0.0 0.1
Other Nordic countries 0.1 0.9 0.1 0.1 0.3 0.3 1.3 0.2 0.5 0.4 0.3
Germany 40.5 172.8 42.6 42.8 43.4 44.4 147.0 36.4 31.9 37.1 41.4
Other European countries 34.6 146.3 28.3 29.6 44.5 43.9 110.3 26.5 25.0 31.1 27.6
Rest of world 0.8 1.9 0.5 0.8 0.3 0.0 0.9 0.2 0.0 0.7 0.1
Edscha Trailer Systems 76.0 322.1 71.5 73.3 88.6 88.7 259.7 63.4 57.5 69.3 69.5
FIRST QUARTER 2019
• Sales decreased 14.3% to SEK 76.0 M (88.7).
• EBITA amounted to SEK 11.2 M (13.0), with an EBITA margin of 14.7% (14.6).
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
11
Sales and earnings
Edscha Trailer Systems reported a weaker quarter in terms of
sales compared with the very strong first quarter in 2018. The
division’s sales decreased 14.3% to SEK 76.0 M (88.7).
Adjusted for exchange rate effects, the actual organic growth
was a negative 18.0%. EBITA for the quarter decreased to SEK
11.2 M (13.0), but with a continuing positive EBITA margin of
14.7% (14.6).
During the period, the division’s working capital increased
by SEK 11.3 M to SEK 74.7 M (63.4 at year-end). With the
addition of property, plant and equipment of SEK 58.8 M, of
which SEK 15.8 M in increased assets in accordance with IFRS
16, operating capital amounted to SEK 133.5 M (105.2 at
year-end) at the end of March.
The division’s return on operating capital (ROOC), where
EBITDA on a rolling four-quarter basis is put in relation to
average operating capital for the same period, was 40.4%
(41.7% full-year 2018).
Investments and depreciation/amortization
Edscha Trailer Systems’ investments during the first quarter
amounted to SEK 2.2 M (0.2), of which SEK 0.2 M pertains to
purchases in accordance with IFRS 16. Depreciation/amortiza-
tion during the quarter totaled SEK 3.3 M (2.5), of which SEK
0.6 M pertains to depreciation/amortization in accordance
with IFRS 16.
Personnel
During the first quarter, Edscha Trailer Systems employed an
average of 87 persons (88 during the year-earlier period). At
March 31, 2019, 83 persons were employed in the division (90
on March 31, 2018), compared with 84 employees at year-
end. Personnel costs for the quarter amounted to SEK 9.0 M
(9.8), resulting in a cost per employee of SEK 103.5 thousand
(111.4).
0
80
160
240
400
320
0
20
40
60
100
80
20192016 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
Quarterly figures Rolling 4 quarters
0
20
10
30
50
40
0
4
16
12
8
20
20192016 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q1 Q2
Quarterly figures Rolling 4 quarters
Q4
NET SALES, SEK M EBITA, SEK M
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
12
SALES/EARNINGS
SEK MQ1
2019Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Net sales 514.1 1,727.3 421.8 460.4 476.8 368.3 1,426.7 338.6 357.4 383.2 347.5
EBITDA 61.4 187.3 33.9 57.0 64.7 31.7 160.8 28.6 42.8 52.4 37.0
EBITA 53.9 173.9 30.3 53.4 61.4 28.8 149.0 25.6 39.9 49.5 34.1
EBITA margin, % 10.5 10.1 7.2 11.6 12.9 7.8 10.4 7.6 11.2 12.9 9.8
Operating profit (EBIT) 48.4 152.4 25.0 48.0 56.0 23.4 127.9 20.3 34.6 44.2 28.8
Operating margin (EBIT), % 9.4 8.8 5.9 10.4 11.8 6.3 9.0 6.0 9.7 11.5 8.3
EBITDA, effect of IFRS 16 4.6
EBITA, effect of IFRS 16 0.5
EBIT, effect of IFRS 16 0.5
SALES BY MARKET
SEK MQ1
2019Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Sweden 10.1 36.7 9.0 8.3 10.1 9.4 37.3 8.0 8.2 9.2 11.9
Other Nordic countries 10.2 36.8 9.5 9.1 9.8 8.3 28.6 7.9 8.3 6.8 5.6
Germany 8.3 30.6 7.3 7.8 7.7 7.8 24.1 6.3 7.0 5.7 5.2
Other European countries 46.3 153.2 36.0 38.2 39.6 39.3 152.8 37.3 38.2 39.0 38.4
North America 428.0 1,429.9 348.2 386.0 398.7 297.0 1,155.7 273.6 288.2 314.4 279.5
China 3.6 14.4 3.1 4.4 4.9 2.0 9.3 2.1 2.7 1.9 2.7
Rest of world 7.7 25.8 8.7 6.6 6.0 4.5 18.8 3.6 4.8 6.2 4.3
Mobile Climate Control 514.1 1,727.3 421.8 460.4 476.8 368.3 1,426.7 338.6 357.4 383.2 347.5
FIRST QUARTER 2019
• Sales rose 39.6% to SEK 514.1 M (368.3).
• EBITA increased to SEK 53.9 M (28.8), with an EBITA margin of 10.5% (7.8).
MOBILE CLIMATE CONTROL
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
13
Sales and earnings
Mobile Climate Control reported a very strong quarter with
record sales in excess of SEK 0.5 billion. Sales for the quarter
grew 39.6% year-on-year to SEK 514.1 M (368.3), with a very
robust performance noted in the North American market.
Adjusted for exchange rate changes, where the average USD
rate strengthened by 13.2% year-on-year, the actual organic
growth was 30.7%. EBITA for Mobile Climate Control
increased year-on-year to SEK 53.9 M (28.8) with the EBITA
margin rising to 10.5% (7.8).
During the period, the division’s working capital increased
SEK 71.7 M to SEK 496.2 M (424.5) and, in addition to prop-
erty, plant and equipment of SEK 232.2 M, of which SEK
118.9 M in increased assets in accordance with IFRS 16, oper-
ating capital amounted to SEK 728.4 M (535.4 at year-end) at
the end of March.
The division’s return on operating capital (ROOC) for the
period, where EBITDA on a rolling four-quarter basis is put in
relation to average operating capital for the same period, was
40.3% (38.6% full-year 2018).
Investments and depreciation/amortization
Mobile Climate Control’s investments during the first quarter
amounted to SEK 5.8 M (4.5), of which SEK 0.2 M pertains to
purchases in accordance with IFRS 16. Depreciation/amortiza-
tion during the quarter totaled SEK 13.0 M (8.3), of which SEK
4.0 M pertains to depreciation/amortization in accordance
with IFRS 16.
Personnel
During the first quarter, Mobile Climate Control employed an
average of 942 persons (807 during the year-earlier period). At
March 31, 2019, 944 persons were employed in the division
(822 on March 31, 2018), compared with 870 employees at
year-end. Personnel costs for the quarter amounted to SEK
118.2 M (86.3), resulting in a cost per employee of SEK 125.5
thousand (106.9).
0
400
800
1,200
2,000
1,600
0
100
200
300
600
500
400
Quarterly figures Rolling 4 quarters
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019
0
80
40
120
200
160
0
20
10
30
40
60
50
2017 2018 2019
Quarterly figures Rolling 4 quarters
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
NET SALES, SEK M EBITA, SEK M
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
14
RINGFEDER POWER TRANSMISSION
SALES/EARNINGS
SEK MQ1
2019
Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018
Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Net sales 133.0 522.0 130.5 136.2 134.0 121.4 479.1 112.0 118.8 122.4 125.8
EBITDA 23.0 87.2 19.8 26.8 21.0 19.6 76.7 15.6 19.5 20.6 21.0
EBITA 19.1 74.2 16.5 23.6 17.7 16.5 64.3 12.5 16.5 17.6 17.8
EBITA margin, % 14.3 14.2 12.6 17.3 13.2 13.6 13.4 11.2 13.9 14.4 14.1
Operating profit (EBIT) 17.9 69.9 15.4 22.5 16.6 15.4 60.3 11.5 15.5 16.6 16.7
Operating margin (EBIT), % 13.5 13.4 11.8 16.5 12.4 12.7 12.6 10.3 13.0 13.5 13.3
EBITDA, effect of IFRS 16 0.9
EBITA, effect of IFRS 16 –0.1
EBIT, effect of IFRS 16 –0.1
SALES BY MARKET
SEK MQ1
2019
Full-year
2018Q4
2018Q3
2018Q2
2018Q1
2018
Full-year
2017Q4
2017Q3
2017Q2
2017Q1
2017
Sweden 1.3 4.5 1.4 0.9 1.2 1.0 4.6 1.3 1.1 0.7 1.5
Other Nordic countries 1.4 5.3 1.1 0.9 1.7 1.6 4.0 0.9 1.1 0.9 1.0
Germany 46.8 183.8 41.9 48.9 47.5 46.0 170.3 37.7 43.1 43.5 46.0
Other European countries 16.9 64.0 16.4 16.6 17.8 13.3 62.2 14.6 15.3 15.7 16.6
North America 25.8 119.1 29.9 31.8 31.1 26.4 101.1 24.3 24.2 26.0 26.6
Brazil 16.0 57.1 14.4 14.8 12.7 15.2 66.7 16.0 16.2 18.9 15.6
Australia/New Zealand 5.4 11.3 2.8 2.9 2.9 2.6 11.5 1.9 2.5 2.5 4.6
China 2.5 16.8 3.9 4.9 4.6 3.4 15.9 3.7 4.5 7.7 1.6
Rest of world 16.9 60.2 18.7 14.4 14.6 11.9 42.8 11.6 10.8 6.5 12.3
FIRST QUARTER 2019
• Sales rose 9.6% to SEK 133.0 M (121.4).
• EBITA increased to SEK 19.1 M (16.5), with an EBITA margin of 14.3% (13.6).
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
15
Sales and earnings
Ringfeder Power Transmission began the year by reporting a
stable performance with improved year-on-year sales and
earnings in the first quarter. Sales for the quarter rose 9.6% to
SEK 133.0 M (121.4) and adjusted for exchange rate changes,
where the average USD rate strengthened 13.2%, the BRL
weakened 2.5% and the EUR strengthened 4.6%, the actual
organic growth was 4.2%. EBITA for Ringfeder Power Trans-
mission increased year-on-year to SEK 19.1 M (16.5) with an
EBITA margin of 14.3% (13.6).
During the period, the division’s working capital increased by
SEK 1.5 M to SEK 216.7 M (215.2). With the addition of prop-
erty, plant and equipment of SEK 121.1 M, of which SEK 10.1
M in increased assets in accordance with IFRS 16, operating
capital amounted to SEK 337.9 M (322.8) at the end of March.
The division’s return on operating capital (ROOC) for the
period, where EBITDA is put in relation to average operating
capital for the same period, was 28.2% (27.9% full-year 2018).
Investments and depreciation/amortization
Ringfeder Power Transmission’s investments during the first
quarter amounted to SEK 4.5 M (1.6), of which SEK 0.2 M
pertains to purchases in accordance with IFRS 16. Deprecia-
tion/amortization during the quarter totaled SEK 5.0 M (4.2),
of which SEK 0.9 M pertains to depreciation/amortization in
accordance with IFRS 16.
Personnel
During the first quarter, Ringfeder Power Transmission employed
an average of 320 persons (317 during the year-earlier period).
At March 31, 2019, 346 persons were employed in the division
(349 on March 31, 2018), compared with 335 employees at year-
end. Personnel costs for the quarter amounted to SEK 38.2 M
(35.2), resulting in a cost per employee of SEK 119.4 thousand
(100.9).
0
120
240
360
600
480
Quarterly figures Rolling 4 quarters
0
30
60
90
150
120
2019Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
2016 2017 2018
0
20
40
60
80
100
0
5
15
10
25
20
2019Q42016 2017 2018
Quarterly figures Rolling 4 quarters
Q1 Q2 Q3 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2
NET SALES, SEK M EBITA, SEK M
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
16
Parent Company
VBG Group AB’s operations are focused on managing, devel-
oping and coordinating the Group. The assets in the Parent
Company consist primarily of shares in subsidiaries and
brands. The objective is that the Group’s key intellectual prop-
erty in the form of brands and other rights should be gathered
in the Parent Company. VBG Group AB focuses on maintaining
and securing all the Group’s trademarks and rights.
The Parent Company’s net sales pertain primarily to intra-
Group services and license revenues and amounted to SEK 2.9
M (2.6) during the period. The operating loss for the period was
SEK 8.5 M (loss: 8.6). After dividends from Group companies
totaling SEK 2.1 M (1.3), exchange rate differences of SEK 2.3 M
(neg: 8.6) and net interest expenses totaling SEK 3.0 M (expense:
3.6), loss before tax amounted to SEK 7.1 M (loss: 19.5).
Accounting policies
The VBG Group applies the EU-endorsed IFRS standards and
interpretations thereof (IFRIC). This interim report for the Group
has been prepared in accordance with the Annual Accounts Act
and IAS 34 Interim Financial Reporting, and for the Parent
Company, in accordance with the Annual Accounts Act and
recommendation RFR 2, Accounting for Legal Entities. The
same accounting policies and calculation methods were applied
as in the most recent annual report, with the exception of IFRS
16, which the Group applies from January 1, 2019.
IFRS 16 Leases took effect on January 1, 2019. IFRS 16 spec-
ifies the recognition of leases for both the lessor and lessee.
The implementation of the standard means almost all leases
will be recognized in the lessee’s balance sheet, as no distinc-
tion is now made between operating and finance leases. In
accordance with the new standard, an asset (the right to use
a leased asset) and a financial liability pertaining to the obliga-
tion to make lease payments are recognized in the balance
sheet and that amortization of leased assets, separate from the
interest expense of the lease, is recognized in profit or loss.
VBG Group has, when transitioning to IFRS 16 on January 1,
2019, used a modified retrospective approach, which means the
2018 fiscal year is not restated. Lease liability is the total present
value of all future fees until the lease has expired. The simplified
rule was applied during the transition, meaning the right-of-use
(before adjustments for any advance payment) corresponds to
the lease liability. The discount rate is VBG Group’s incremental
borrowing rate for each currency. Exemptions to not recognize
short-term leases and assets of low value were also applied.
This report may contain rounding differences.
New accounting policy for leases
As of January 1, 2019, VBG Group applies the recognition of
leases in accordance with IFRS 16 using the following account-
ing policy. All leases are recognized in the balance sheet, on
the starting date, as a right-of-use and a lease liability. An
agreement is considered, or includes a lease, if the agreement
transfers the right to determine the use of an identified asset
over a specified period in exchange for remuneration. A right-
of-use and lease liability are recognized for all leases with a
lease term of more than twelve months, with the exception of
assets of low value. After the starting date, right-of-use is
measured in accordance with provisions for property, plant
and equipment. A lease liability is discounted by using the
implicit interest in the lease, if this interest rate is readily iden-
tifiable. If the interest rate is not readily identifiable, the incre-
mental borrowing rate can be used. The incremental borrow-
ing rate is determined based on currency and financing terms
for the Group. The lease term is determined as the non-can-
cellable period together with both periods covered by a poten-
tial extension to the lease if the lessee is reasonably confident
that this alternative will be used, and periods covered by an
opportunity to end the lease if the lessee is reasonably confi-
dent that this alternative will be used. VBG Group has also
applied the simplified rule for fixed, non-lease components
and instead recognizes these together with the lease compo-
nent in the contract. Moreover, future modified leases will not
be recognized as a separate lease, but rather as a remeasure-
ment of the lease liability and an adjustment of right-of-use.
Risks and uncertainty factors
The Group’s and the Parent Company’s significant risks and
uncertainty factors include operational risks in the form of
commodity risks, product risks, development risks, intellectual
property risks, environmental risks, political risks, business
interruption and property risks, cyclical risks, IT security risks
and legal risks. To these can be added financial risks such as
financing risks, liquidity risks, interest rate risks, currency risks
and credit and counterparty risks as well as sustainability risks.
For a more detailed description of the Group’s risks and risk
management, see Note 2 of VBG Group AB’s annual report for
2018.
Outlook for 2019
The company makes no forecast.
Financial information 2019/2020
Interim report, six months 2019 August 20, 2019
Interim report, nine months 2019 October 22, 2019
Year-end report 2019 February 20, 2020
Interim report, three months 2020 April 28, 2020
Annual General Meeting 2020 April 28, 2020
Interim report, six months 2020 August 20, 2020
Interim report, nine months 2020 October 22, 2020
Related party transactions
There have been no related party transactions in 2019 that
have significantly affected the company’s financial position
and results. Related party transactions during 2018 are dis-
closed in Note 6 in the annual report for 2018.
Auditor’s review
This interim report is unaudited.
Events after the close of the reporting period
No significant events occurred after the close of the period.
OTHER INFORMATION
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
17
For further information, please contact:
Anders Birgersson, President and CEO
Telephone: +46 521 27 77 67, +46 702 27 77 78
E-mail: anders.birgersson@vbggroup.com
Note
The information in this report is of the type that VBG Group
AB is obligated to disclose in accordance with the Swedish
Securities Exchange and Clearing Operations Act and/or the
Financial Instruments Trading Act. The information was sub-
mitted for publication at 3:00 p.m. on April 24, 2019.
Press releases issued in the first quarter of 2019
VBG Group AB (publ)
publishes Annual Report for 2018 March 26, 2019
Notice to attend the Annual General Meeting March 23, 2019
VBG Group acquires BPW’s
drawbar assemblies business March 15, 2019
Year-end report 2018 February 19, 2019
Vänersborg, April 24, 2019
VBG Group AB (publ)
Anders Birgersson
President and CEO
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
18
Consolidated Income Statement and Statement of other comprehensive income — Highlights
SEK MQ1
Jan–Mar 2019Q1
Jan–Mar 2018Full-year
2018
Net sales 989.6 817.7 3,492.4
Cost of goods sold –647.6 –529.1 –2,301.6
Gross profit 342.0 288.6 1,190.9
Selling expenses –97.5 –93.5 –381.7
Administrative expenses –66.5 –61.8 –265.0
Research and development costs –35.4 –29.5 –136.4
Other operating income and expenses –7.0 1.3 9.8
–206.5 –183.4 –773.3
Operating profit 135.5 105.2 417.6
Exchange rate effects, net –4.1 –10.9 –10.7
Interest income 0.7 0.3 2.2
Interest expenses –7.0 –6.8 –27.8
Other financial expenses –3.4 –2.1 –8.3
Total financial items –13.8 –19.6 –44.5
Profit after financial items 121.7 85.6 373.1
Tax –32.8 –22.1 –100.1
Profit for the period 89.0 63.5 273.0
Profit for the period attributable to Parent Company shareholders 89.0 63.5 273.0
Other comprehensive income
Profit for the period 89.0 63.5 273.0
Items that will not be reversed in the Income Statement
Effect of translation of defined-benefit pension plans, net after tax — — –4.4
Items that may later be reversed in the Income Statement
Translation differences pertaining to foreign operations 34.2 52.8 34.4
Translation differences pertaining to hedge accounting for net investments in foreign operations 0.7 –0.9 –2.0
Other comprehensive income, net after tax 34.9 51.9 28.0
Comprehensive income for the period 123.9 115.4 301.0
Comprehensive income for the period attributable to Parent Company shareholders 123.9 115.4 301.0
Earnings per share, basic and diluted, SEK 3.56 2.54 10.92
Number of outstanding shares at end of period (‘000) 25,004 25,004 25,004
Average number of shares during the period (‘000) 25,004 25,004 25,004
Number of own shares at end of period (‘000) 1,192 1,192 1,192
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
19
Sales and earnings by segment
SEK M
VBG Truck
Equipment
Edscha Trailer
Systems
Mobile Climate Control
Ringfeder Power
Transmission Group-wide Group
2019
Q1 Jan–Mar Net sales 266.5 76.0 514.1 133.0 989.6
Operating profit/loss 63.0 9.9 48.4 17.9 –3.7 135.5
Operating margin, % 23.6 13.0 9.4 13.5 13.7
Net financial items –13.8 –13.8
Profit after financial items 121.7
2018
Q1 Jan–Mar Net sales 239.4 88.7 368.3 121.4 817.7
Operating profit/loss 57.5 11.7 23.4 15.4 –2.9 105.2
Operating margin, % 24.0 13.2 6.3 12.7 12.9
Net financial items –19.6 –19.6
Profit after financial items 85.6
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
20
Consolidated Balance SheetSEK M Mar. 31, 2019 Mar. 31, 2018 Dec. 31, 2018
AssetsNon-current assetsIntangible assetsBrands, customer relationships and other intangible assets 798.7 822.7 798.9Goodwill 1,136.4 1,130.3 1,128.6
1,935.1 1,953.0 1,927.5Property, plant and equipmentLand and buildings 187.9 183.8 186.2Plant and machinery 105.1 100.7 100.7Equipment, tools, fixtures and fittings 49.6 56.0 51.3Construction in progress 12.1 10.8 10.3Right-of-use 167.1 — —
521.8 351.3 348.5
Deferred tax asset 67.2 49.8 63.8
Total non-current assets 2,524.1 2,354.0 2,339.9
Current assetsInventoriesRaw materials and consumables 336.1 298.4 322.2Work in progress 87.2 82.6 85.1Finished products and merchandise 228.9 173.6 227.6
652.2 554.6 634.9Current receivablesTrade receivables 616.2 506.0 491.2Current tax assets 23.5 36.3 25.5Other receivables 38.3 54.0 41.4Prepaid expenses and accrued income 22.1 24.3 19.7
700.1 620.5 577.6Cash and cash equivalentsCash on hand and demand deposits 456.9 386.9 371.4Total current assets 1,809.3 1,562.0 1,583.9
Total assets 4,333.4 3,916.0 3,923.8
Equity and liabilitiesEquityShare capital 65.5 65.5 65.5Other contributed capital 779.4 779.4 779.4Reserves 71.5 43.2 118.4Retained earnings, incl. net profit for the year 1,433.9 1,232.1 1,263.1Total equity 2,350.3 2,120.2 2,226.5
Non-current liabilitiesProvisions for pensions and similar obligations 197.6 189.6 196.9Deferred tax liability 225.8 207.5 224.6Other provisions 25.3 29.4 49.0Lease liability 142.5 — —Liabilities to credit institutions 0.6 812.6 0.9Total non-current liabilities 591.8 1,239.1 471.3
Current liabilitiesLiabilities to credit institutions 842.5 76.1 821.5Trade payables 257.1 247.4 212.7Current tax liabilities 28.0 24.6 36.7Other liabilities 47.1 32.9 30.4Lease liability 24.3 — —Accrued expenses and deferred income 192.1 176.1 151.3Total current liabilities 1,391.2 557.1 1,252.6
Total equity and liabilities 4,333.4 3,916.0 3,923.8
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
21
Changes in Consolidated Equity
SEK M Q1 2019 Q1 2018 Full-year 2018
Opening equity according to balance sheet at December 31 2,226.5 2,004.9 2,004.9
Total comprehensive income for the period 123.9 115.4 301.0
Contributed capital, new share issue, net — — 1.9
Dividend 0.0 0.0 –81.3
Equity at end of period 2,350.3 2,120.2 2,226.5
Consolidated Cash Flow Statement
SEK M Q1 2019 Q1 2018 Full-year 2018
Operating activities
Operating profit before financial items 135.5 105.2 417.6
Depreciation/amortization 27.5 19.2 79.8
Other items not affecting liquidity 5.1 17.8 24.8
Interest received, etc. 1.0 0.4 3.0
Interest paid, etc. –9.2 –9.1 –36.8
Tax paid –41.1 –31.6 –80.7
Cash flow before change in working capital 118.9 101.9 407.7
Decrease/increase (–) in inventories –0.4 –49.9 –130.9
Decrease/increase (–) in trade receivables –107.4 –75.5 –61.7
Decrease/increase (–) in other current receivables 1.9 –14.3 –0.3
Increase/decrease (–) in trade payables 32.8 64.0 29.9
Increase/decrease (–) in other current liabilities 54.3 46.7 8.9
Cash flow from operating activities 100.1 73.0 253.6
Investing activities
Investments in intangible assets –2.4 –1.1 –2.2
Investments in property, plant and equipment –10.9 –13.8 –45.0
Cash flow from investing activities –13.2 –14.9 –47.2
Financing activities
Repayment of loans — — –80.0
Loans raised and changes to existing loans –5.2 3.6 0.6
New share issue — — 1.9
Dividend paid — — –81.3
Cash flow from financing activities –5.2 3.6 –158.9
Cash flow for the year 81.3 61.7 47.5
Cash and cash equivalents at start of year 371.4 321.4 321.4
Translation difference, cash and cash equivalents 4.3 3.7 2.4
Cash and cash equivalents at end of period 456.9 386.9 371.4
Unutilized overdraft facilities 100.0 100.0 100.0
Total cash and cash equivalents available 556.9 486.9 471.4
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
22
Key figures for Group SEK M Q1 2019 Q1 2018 Full-year 2018
Operating margin (EBIT), % 13.7 12.9 12.0
Profit margin (ROS), % 12.3 10.5 10.7
Return on equity (ROE), % 15.6 12.3 12.8
Return on capital employed (ROCE), % 15.7 13.5 13.2
Equity/assets ratio, % 54.2 54.1 56.7
Equity per outstanding share at end of period, SEK 94.0 84.80 89.04
Cash flow from operating activities, per average outstanding share, SEK 4.00 2.92 10.14
Profit per average outstanding share during the period, SEK 3.56 2.54 10.92
Share price at end of period, SEK 138.60 134.00 127.00
Number of employees, average 1,635 1,485 1,561
Number of outstanding shares at end of period (‘000) 25,004 25,004 25,004
Number of own shares at end of period (‘000) 1,192 1,192 1,192
Average number of outstanding shares during the period (‘000) 25,004 25,004 25,004
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
23
Parent Company Balance Sheet
SEK M Mar. 31, 2019 Mar. 31, 2018 Dec. 31, 2018
Other intangible assets 0.7 2.6 0.8
Property, plant and equipment 1.1 1.1 1.2
Long-term investments 2,352.0 1,987.5 2,341.3
Total non-current assets 2,353.8 1,991.2 2,343.3
Receivables 65.4 420.8 113.8
Cash on hand, demand deposits and short-term investments 380.0 221.4 232.4
Total current assets 445.4 642.2 346.2
Total assets 2,799.2 2,633.4 2,689.5
Equity 1,420.4 1,260.0 1,425.6
Untaxed reserves 5.5 4.8 5.5
Provisions 13.1 15.7 13.1
Non-current liabilities 0.0 801.4 0.0
Current liabilities 1,360.2 551.5 1,245.3
Total equity and liabilities 2,799.2 2,633.4 2,689.5
Parent Company Income Statement
SEK MQ1
Jan–Mar 2019Q1
Jan–Mar 2018 Full-year 2018
Net sales 2.9 2.6 42.6
Operating expenses –11.4 –11.2 –53.7
Operating loss –8.5 –8.6 –11.1
Net financial items 1.4 –10.9 205.0
Loss after financial items –7.1 –19.5 193.9
Appropriations — — 30.2
Tax — — –2.0
Loss for the period –7.1 –19.5 222.1
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
24
The interim report at March 31 was prepared in accordance with the new IFRS 16 standard, which means assets and liabilities in
the balance sheet have increased with right-of-use assets and lease liabilities. Changes have also taken place in the income state-
ment as lease costs are reclassified to amortization and interest expense in accordance with the new standard. The following is a
list of the effects on the balance sheet and income statement as well as on key figures resulting from the transition to the new
standard. See page 16 for more information about IFRS 16.
CONSOLIDATED INCOME STATEMENT – HIGHLIGHTS
SEK MQ1 19 excl.
IFRS 16Effect of IFRS 16
Q1 19 incl. IFRS 16
Net sales 989.6 989.6
Operating expenses –834.7 8.1 –826.6
Depreciation/amortization –19.9 –7.7 –27.5
Operating profit 135.1 0.4 135.5
Net financial items –12.2 –1.5 –13.8
Profit/loss after financial items 122.8 –1.1 121.7
Tax –32.6 –0.1 –32.8
Profit/loss for the period 90.2 –1.2 89.0
CONSOLIDATED BALANCE SHEET – HIGHLIGHTS
SEK MQ1 19 excl.
IFRS 16Effect of IFRS 16
Q1 19 incl. IFRS 16
Assets
Total non-current assets 2,357.1 167.1 2,524.2
Total current assets 1,811.0 –1.8 1,809.2
Total assets 4,168.1 165.3 4,333.4
Liabilities
Equity 2,352.0 –1.6 2,350.3
Total non-current liabilities 449.3 142.5 591.8
Total current liabilities 1,366.9 24.3 1,391.2
Total equity and liabilities 4,168.1 165.3 4,333.4
THE GROUP’S KEY FIGURES
SEK MQ1 19 excl.
IFRS 16 Effect of
IFRS 16Q1 19 incl.
IFRS 16
EBITDA 154.9 8.1 163.0
EBITA 143.2 0.4 143.6
Equity/assets ratio, % 56.4 –2.2 54.2
Interest-bearing net debt 583.9 166.8 750.7
Interest-bearing net debt/EBITDA 1.09 0.31 1.40
ROCE 16.5 –0.8 15.7
Earnings per share, SEK 3.61 –0.05 3.56
Effects of transition to IFRS 16
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
25
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 ana-
lyze 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.
ACTUAL ORGANIC GROWTH
Growth in net sales excluding effects of structural changes, meaning acquired or divested operations, and excluding currency effects.
SEK M Q1 2019 Q1 2018 Full-year 2018
Group
Net sales 989.6 817.7 3,492.4
Acquired volume (incl. full-year effect from preceding year)
Currency effect –51.9 10.7 –100.5
Net sales excluding acquisitions and currencies 937.7 828.4 3,391.9
Actual organic growth 120.0 59.8 389.9
Organic growth, % 14.7 7.8 13.0
VBG Truck Equipment
Net sales 266.5 239.4 921.0
Acquired volume (incl. full-year effect from preceding year)
Currency effect –9.4 –2.6 –30.6
Net sales excluding acquisitions and currencies 257.1 236.8 890.4
Actual organic growth 17.7 10.9 53.7
Organic growth, % 7.4 4.8 6.4
Edscha Trailer Systems
Net sales 76.0 88.7 322.1
Acquired volume (incl. full-year effect from preceding year)
Currency effect –3.3 –4.3 –19.6
Net sales excluding acquisitions and currencies 72.7 84.4 302.5
Actual organic growth –16.0 14.9 42.8
Organic growth, % –18.0 21.5 16.5
Mobile Climate Control
Net sales 514.1 368.3 1,727.3
Acquired volume (incl. full-year effect from preceding year)
Currency effect –32.6 15.7 –36.3
Net sales excluding acquisitions and currencies 481.5 384.0 1,691.0
Actual organic growth 113.2 36.5 264.3
Organic growth, % 30.7 10.5 18.5
Ringfeder Power Transmission
Net sales 133.0 121.4 522.0
Acquired volume (incl. full-year effect from preceding year)
Currency effect –6.6 1.9 –13.9
Net sales excluding acquisitions and currencies 126.4 123.3 508.1
Actual organic growth 5.1 –2.5 29.1
Organic growth, % 4.2 –2.0 6.1
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
26
EBITDA
Operating profit before depreciation and impairment on property, plant and equipment.Group, SEK M Q1 2019 Q1 2018 Full-year 2018
Operating profit 135.5 105.2 417.6
Depreciation/amortization 27.5 19.2 79.8
EBITDA 163.0 124.4 497.4
EBITA
Operating profit before amortization and impairment of intangible assets.Group, SEK M Q1 2019 Q1 2018 Full-year 2018
Operating profit 135.5 105.2 417.6
Amortization of intangible assets 8.1 7.9 31.7
EBITA 143.6 113.0 449.3
PROFIT MARGIN
Profit after financial items as a percentage of net sales.Group, SEK M Q1 2019 Q1 2018 Full-year 2018
Net sales 989.6 817.7 3,492.4
Profit after financial items 121.7 85.6 373.1
Profit margin, % 12.3 10.5 10.7
INTEREST-BEARING NET DEBT
Interest-bearing provisions and loan liabilities less cash and cash equivalents.Group, SEK M Q1 2019 Q1 2018 Full-year 2018
Provisions for pensions 197.6 189.6 196.9
Overdraft facilities — — —
Loans 843.2 888.7 822.4
Lease liability 166.8 — —
Bank balances –456.9 –386.9 –371.4
Interest-bearing net debt 750.7 691.4 647.9
INTEREST-BEARING NET DEBT/EBITDA, ROLLING FOUR QUARTER
Interest-bearing net debt in proportion to operating profit before depreciation/amortization and impairment.Group, SEK M Q1 2019 Q1 2018 Full-year 2018
Interest-bearing net debt 750.7 691.4 647.9
EBITDA, rolling four quarter 536.0 430.8 497.4
Interest-bearing net debt/EBITDA 1.40 1.60 1.30
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
27
ROOC
EBITDA as a percentage of operating capital as below.
Group, SEK M Q1 2019 Q1 2018 Full-year 2018
VBG Truck Equipment
Inventories 119.9 118.2 117.7
Trade receivables 167.8 152.2 138.9
Trade payables –61.4 –46.6 –42.8
Working capital 226.3 223.8 213.8
Property, plant and equipment 106.9 88.1 87.0
Operating capital 333.2 311.9 300.7
EBITDA, rolling four quarter 198.6 189.1 191.4
Average operating capital four quarter 301.7 272.1 296.9
ROOC, % 65.8 69.5 64.5
Edscha Trailer Systems
Inventories 47.4 53.7 51.6
Trade receivables 40.3 43.2 27.7
Trade payables –13.1 –25.0 –15.9
Working capital 74.7 71.9 63.4
Property, plant and equipment 58.8 45.0 41.8
Operating capital 133.5 116.9 105.2
EBITDA, rolling four quarter 47.9 27.7 48.9
Average operating capital four quarter 118.6 112.9 117.1
ROOC, % 40.4 24.6 41.7
Mobile Climate Control
Inventories 346.6 260.0 328.4
Trade receivables 316.0 225.0 237.0
Trade payables –166.5 –155.9 –140.8
Working capital 496.2 329.1 424.5
Property, plant and equipment 232.2 104.3 110.9
Operating capital 728.4 433.4 535.4
EBITDA, rolling four quarter 217.0 155.5 187.3
Average operating capital four quarter 538.8 409.7 485.1
ROOC, % 40.3 37.9 38.6
Ringfeder Power Transmission
Inventories 138.3 124.5 139.0
Trade receivables 92.1 85.7 87.7
Trade payables –13.6 –17.6 –11.4
Working capital 216.7 192.6 215.2
Property, plant and equipment 121.1 112.7 107.6
Operating capital 337.9 305.2 322.8
EBITDA, rolling four quarter 90.5 75.3 87.2
Average operating capital four quarter 320.9 291.0 312.9
ROOC, % 28.2 25.9 27.9
VBG GROUP INTERIM REPORT JANUARY–MARCH 2019
28
IndiaMOBILE CLIMATE CONTROL THERMAL INDIA PVT. LTD.Plot No. 4BRoad No.2, Phase-IKIADB Industrial Area NarasapuraKolar – 56313, Karnataka
BrazilMCC DO BRASIL LTDARua Silverio Finamore, 920-Gp 3Louveira- SP, 13.290-000Tel +55 19 3878 2058
RINGFEDER POWER TRANSMISSION
GermanyRINGFEDER POWER TRANSMISSION GMBHWerner-Heisenberg-Straße 18 DE-64823 Groß-UmstadtTel +49 6078 9385-0
RINGFEDER POWER TRANSMISSION TSCHAN GMBHPostfach 2166DE-66521 NeunkirchenTel +49 6821 866 0
Czech RepublicRINGFEDER POWER TRANSMISSION S.R.O. Oty Kovala 1172CZ-33441 DobranyTel +420 377 201 511
USARINGFEDER POWER TRANSMISSION USA CORPORATION165 Carver AvenueWestwood, N.J. 07675Tel +1 201 666 3320
IndiaRINGFEDER POWER TRANSMISSION INDIA PRIVATE LTD.Plot No. 4, Door No. 220Mount Poonamallee High RoadKattuppakkamChennai-600056Tel +91 44 2679 1411
ChinaKUNSHAN RINGFEDER POWER TRANSMISSION CO., LTD.No. 406, Jiande RoadZhangpu 215321Kunshan, Jiangsu ProvinceTel +86 512 5745 3960
BrazilHENFEL INDÚSTRIA METALÚRGICA LTDA.Major Hilario Tavares Pinheiro, 3447 Cep 14871 - 300Jaboticabal, SPTel +55 16 3209 3422
VBG TRUCK EQUIPMENT
Sweden VBG GROUP TRUCK EQUIPMENT AB Box 1216SE-462 28 VänersborgTel +46 521 27 77 00
GermanyVBG GROUP TRUCK EQUIPMENT GMBHPostfach 13 06 55DE-47758 KrefeldTel +49 2151 835-0
DenmarkVBG GROUP SALES A/SIndustribuen 20–22DK-5592 EjbyTel +45 64 46 19 19
NorwayVBG GROUP SALES ASPostboks 94 LeirdalNO-1009 OsloTel +47 23 14 16 60
UKVBG GROUP SALES LIMITEDUnit 9, Willow CourtWest Quay Road, Winwick QuayWarrington, Cheshire WA2 8UFTel +44 1925 23 41 11
BelgiumVBG GROUP TRUCK EQUIPMENT NVIndustrie Zuid Zone 2.2Lochtemanweg 50BE-3580 BeringenTel +32 11 60 90 90
USAONSPOT OF NORTH AMERICA, INC.P.O. Box 1077North Vernon, IN 47265-5077Tel +1 800 224 2467
Branch:555 Lordship BlvdStratford, CT 06615-7124Tel +1 800 766 7768
FranceONSPOT E.U.R.L14 Route de SarrebruckFR-57645 Montoy-FlanvilleTel +33 387 763 080
EDSCHA TRAILER SYSTEMS
Germany EUROPEAN TRAILER SYSTEMS GMBHIm Moerser Feld 1fDE-47441 MoersTel +49 2841 6070 700
Czech RepublicEUROPEAN TRAILER SYSTEMS S.R.O.Ke Gabrielce 786CZ-39470 Kamenice nad LipouTel +420 565 422 402
VBG GROUP
SwedenVBG GROUP AB (PUBL) Kungsgatan 57SE-461 34 TrollhättanTel +46 521 27 77 00www.vbggroup.com
MOBILE CLIMATE CONTROL
SwedenMOBILE CLIMATE CONTROL GROUP HOLDING ABKungsgatan 57SE-461 34 TrollhättanTel +46 521 27 77 00
MOBILE CLIMATE CONTROL SVERIGE ABSikvägen 9SE-761 21 NorrtäljeTel +46 8 402 21 40
GermanyMOBILE CLIMATE CONTROL GMBH Jägerstraße 33DE-712 72 RenningenTel +49 715 993 087–0
CanadaMOBILE CLIMATE CONTROL INC.7540 Jane St.Vaughan, OntarioL4K 0A6Tel +1 905 482 2750
MOBILE CLIMATE CONTROL INC.6659 Ordan DriveMississauga, OntarioL5T 1K6Tel +1 905 482 2750
USAMOBILE CLIMATE CONTROL CORP.P.O. Box 803Goshen, Indiana 46527Tel +1 574 534 1516
MOBILE CLIMATE CONTROL CORP.3189 Farmtrail RoadYork, PA 17406Tel +1 717 767 6531
MOBILE CLIMATE CONTROL CORP.27 Corporate Circle Suite 1East Syracuse, NY 13057Tel +1 315 434 1851
PolandMOBILE CLIMATE CONTROL S.P.Z.OOUl. Szwedzka 155-200 OławaTel +48 71 3013 701
ChinaNINGBO MOBILE CLIMATE CONTROL MANUFACTURING/TRADING CO., LTDNo.7 Jinxi RoadZhenhai, Ningbo, 315221Tel +86 574 863 085 77
South AfricaMCC AFRICA PTY (LTD)Unit 7B, Rinaldo Industrial Park50 Moreland Drive, Red Hill4071 DurbanTel +27 31 569 3971
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