interim report january– september 2015 - sveaskog · 2018. 3. 7. · interim report january–...
TRANSCRIPT
1 July – 30 September 2015• Netsalesdecreasedby2%toSEK1,284million(1,309).Deliveryvolumeswereunchangedwhiletheaveragepricewas1%lower.
• Operatingprofitfromcontinuingoperationsincreasedby34%toSEK295million(220).DeliveryvolumesfromSveaskog’sownforestsincreasedby1%withonaverageunchangedprices.EarningsincludeacapitalgainofSEK47millionrelatedtothesaleofdevelopmentland.
• ChangeinvalueofforestassetswasSEK83million(120).• Profitforthequarterrose15%toSEK260million(227).
1 January – 30 September 2015• Netsalesdecreasedby1%toSEK4,532million(4,591).Deliveryvolumeswereunchangedwhiletheaveragepricewas1%lower.
• Operatingprofitfromcontinuingoperationsincreasedby8%toSEK918million(852).DeliveryvolumesfromSveaskog’sownforestsincreasedby2%whileaveragepriceswereunchanged.
• ChangeinvalueofforestassetswasSEK515million(312).• Profitfortheperiodrose30%toSEK1,065million(821).
Q3Interim report January – September 2015
Photo: Shutterstock
Sawlog deliveries rose 3% compared with the corresponding period in the previous year.
3months 9months 12months
July–Sept Jan–Sept Oct2014– FullyearSEKm 2015 2014 % 2015 2014 % Sept2015 2014 %
Netsales 1,284 1,309 –2 4,532 4,591 –1 6,173 6,232 –1
Operatingprofitfromcontinuingoperations 295 220 34 918 852 8 1,320 1,254 5
Changeinvalueofforestassets 83 120 –31 515 312 65 1,235 1,032 20
Operatingprofit 382 353 8 1,515 1,233 23 2,700 2,418 12
Profitbeforetax 335 290 16 1,358 1,035 31 2,480 2,157 15
Profitfortheperiod 260 227 15 1,065 821 30 1,935 1,691 14
Cashflowfromoperatingactivities 214 192 11 837 702 19 904 769 18
1)Rolling12months.2)Operatingprofitbeforechangeinvalueofforestassetsminuscapitalgains onpropertysalesplusfinancialincomedividedbyfinancialexpenses.
SveaskogisSweden’sleadingforestcompanyandsellssawlogs,pulpwood,biofuel,forestseedlingsandsilviculturalservices.Sveaskogalsoworkswithlandtransactionsanddevelopstheforestasavenueforhunting,fishingandothernature-basedexperiences.TheforestanditsassetsareSveaskog’scorebusinessandsustainabledevelopmentpermeateseveryaspectofSveaskog’sactivities.SveaskogisaffiliatedwithFSC.
Jan–Sept Jan–Sept Oct2014– Fullyear 2015 2014 Sept2015 2014
Yield,%1) (targetatleast4.5%) 5.1 4.7 5.1 5.0
Netdebt/equityratio,multiple (target0.3–0.6) 0.44 0.47 0.44 0.44
Returnonoperatingcapital,%1) 10.2 9.1 10.2 9.2
Returnonequity,%1) 10.6 9.3 10.6 9.4
Interestcover,multiple1,2) 5.9 4.3 5.9 4.8
Equityratio,% 49 48 49 50
Interest-bearingnetdebt,SEKm 8,174 8,279 8,174 8,207
Averagenumberofemployees 814 836 814 877
Totaldeliveryvolume,thousandm3sub 7,947 7,948 10,838 10,838
Key figures, Group
Continued good earnings trendSveaskog’soperatingprofitfromcontinuingoperationsfortheperiodJanuary–September2015amountedtoSEK918million(852),anincreaseof8%.Deliveriesfromownforestsincreasedby2%whilepricesonaveragewereunchanged.EarningsincludeaSEK47millioncapitalgainonthesaleofdevelopmentland.Yieldamountedto5.1%(4.7).NetsalestotalledSEK4,532million(4,591).Sveaskog’stotalsalesofwoodrawmaterialamountedto7.9(7.9)millioncubicmetres(m3sub).Sawlogsalesincreasedby3%,salesofpulpwoodandchipswereunchangedwhilesalesofbiofuel
decreasedby11%.Despitethefactthatearningsincludesomenon-recur-ringitems,profitabilityincontinuingoperationsisgood,whichisgratifying.
Mixed signals in the marketDemandforsawnwoodproductswasgoodbutthereissomeoversupply.Swedishsawmillsexpectslightlyhigherproductionbutlowerexportpricesinthenextquarter.Thesawmillswerewellsuppliedwithsawlogs.Stockswererelativelyhighbutarenowshowingsignsofdecreasing.Sawlogpriceschangedmarginally. ExportlevelsforSwedishpaperpulparestable.Aspreviouslydemandforandpricesofcartonboardproductsarerisingwhiledemandforgraphicpaperproductsisfalling.TheperiodwascharacterisedbygoodavailabilityofpulpwoodandcellulosechipsinSweden.Earlierpricereductionsforpulpwoodhavelevelledout. InvestmentsintheSwedishandFinnishforestindustriesareincreasing.Metsä’sannouncedinvestmentsinÄänekoskiincentralFinland,Södra’sinvestmentsinVäröandmostrecentlySCA’sannouncedinvestmentinÖstrandindicateabeliefinthefutureandingrowthintheforestindustry.ThiswillresultinhigherdemandforwoodrawmaterialwhichispositiveforSveaskogasamajorsupplier.
National forest programme important for the industryThisautumn,workwiththeSwedishnationalforestprogrammewillstartinearnest.Thehopeisthatthiswillresultinconstructiveandassertiveguide-linesforSwedishforests.AsfarasSveaskogisconcerned,weregarditasimportantthattheprogrammeencouragestheuseofwoodinconstruction,providesgreaterclarityrelatingtoenergyandbiofuelandfacilitatesresearchintobioeconomics.
More salmon in Swedish rivers create more jobs in rural areasInSeptember,SveaskogarrangedaseminarinMörrumongrowthpotentialforsalmonfishinginSweden.H.M.KingCarlXVIGustavandtheMinisterofRuralAffairs,Sven-ErikBucht,participated.TheconclusionfromtheseminarwasthatinaninternationalperspectiveSwedenhasthepotentialtocreatemajorvaluesinthehospitalitysectorbybuildingupsalmonstocks.Thiswillcontributetogoodgrowthandprovidemorejobopportunitiesinruralareas.
Sveaskog’s employees more motivatedThisyear’semployeesurveyshowssignificantimprovementswhichishighlygratifying.Oneoftheindicators,theEmployeeMotivationIndex(MMI),increasedcomparedwithlastyearbysixpointsto70andtheLeadershipIndexrosebyeightpointsto73.ThesurveyalsoindicatesincreasedprideinworkingatSveaskogandagreaterwillingnesstorecommendotherstoapplyforjobsatSveaskog.
Per-OlofWedin,PresidentandCEO
Target4.5
0
1
2
3
4
5
Oct 2012–Sept 2013
4.75.1
Oct 2013–Sept 2014
Oct 2014–Sept 2015
3.8
Yield, %, rolling 12 months
Target0.3-0.6
0.0
0.1
0.2
0.3
0.4
0.5
0.6
Sept 2013 Sept 2015Sept 2014
0.53
0.440.47
Net debt/equity ratio, multiple, at 30 September
Product breakdown by % of sales, rolling 12 months
Sawlogs 48%Pulpwood and chips 40%Biofuel 4%Other 8% (forest seedlings, leases, etc.)
CEO’s comments
INterIM report JaNuarY – SepteMber 2015
Theme – Sustainability
ValueTarget metric 2013 2014 2015
Employee Motivation Index (MMI)* 64 70Leadership Index 70 65 73
* New metrics from 2014.
One of Sveaskog’s targets for sustainable business is to be the preferred choice for employees and contractors. We measure this using employee and contractor surveys and we make active efforts to increase the proportion of women and employees from a non-Swedish background.
– 2 –
1 JuLY–30 SepteMber 2015
Net salesNetsalesdecreasedby2%toSEK1,284million(1,309).Totaldeliveryvolumeswereunchangedcomparedwiththecorrespondingperiodlastyearwhileaveragesellingpriceswere1%lower.Salesofwoodrawmaterialtotalled2.3(2.3)millioncubicmetres(m3sub).
earnings
Operatingprofitfromcontinuingoperationsincreasedby34%toSEK295million(220).Deliveryvolumesfromownforestsincreasedby1%whilepricesonaveragewereunchanged.EarningsincludeacapitalgainofSEK47millionrelatingtothesaleofalargeagriculturalproperty. GainsfrompropertysalesrelatedtoforestlandandstandingtimberamountedtoSEK9million(7).ShareofprofitsoftheassociateSetraGroupamountedtoSEK–5million(6).OperatingprofitbeforechangeinvalueofforestassetsamountedtoSEK299million(233).ChangeinvalueforthethirdquarterwasSEK83million(120).Theincreaseisattributabletohigherpriceeffectsinthevaluationmodel.Afterchangeinvalueofforestassets,operatingprofitamountedtoSEK382million(353). NetfinancialitemsinthequarteramountedtoSEK–47million(–63).Profitbeforetaxincreasedby16%toSEK335million(290).TaxfortheperiodamountedtoSEK–75million(–63).Profitforthequarterrose15%toSEK260million(227).
1 JaNuarY–30 SepteMber 2015
Net salesNetsalesdecreasedby1%toSEK4,532million(4,591).Salesvolumeswereunchangedbuttimberpriceswereonaverage1%lower.Salesofwoodrawmaterialtotalled7.9(7.9)millioncubicmetres(m3sub).
earnings
Operatingprofitfromcontinuingoperationsincreasedby8%toSEK918million(852).Deliveriesfromownforestswere2%higherandpriceswerelargelyunchanged.EarningsincludeaVATremissionofSEK36millionattributabletoatransferofoperationsatthebeginningofthe2000saswellasacapitalgainofSEK47millionrelatingtothesaleofalargeagriculturalproperty. GainsfrompropertysalesrelatingtoforestlandandstandingtimberamountedtoSEK55million(5). ShareofprofitsoftheassociateSetraGroupamountedtoSEK27million(64). OperatingprofitbeforechangeinvalueofforestassetsamountedtoSEK1,000million(921).ChangeinvalueofforestassetswasSEK515million(312).Theincreaseisattributabletohigherpriceeffectsinthevaluationmodelandslightlylowerfellingvolumes.Afterchangeinvalueofforestassets,operatingprofitamountedtoSEK1,515million(1,233). NetfinancialitemsamountedtoSEK–157million(–198).Profitbeforetaxincreasedby31%toSEK1,358million(1,035).TaxfortheperiodamountedtoSEK–293million(–214).Profitfortheperiodincreasedby30%toSEK1,065million(821).
– 3 –
Group performance
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1,284
Q1-13 -14 -15
201320142015
Q2-13 -14 -15
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Net sales, SEKm
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295
201320142015
Q1-13 -14 -15
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Operating profit from continuing operations, SEKm
Change, net sales, SEKm
Operating profit, SEKm
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1,200
382
Q1-13 -14 -15
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201320142015
July–Sept Jan–Sept
2014 1,309 4,591Price, wood raw material –19 –43Delivery volume, wood raw material 1 –1Other –7 –15 Total –25 –592015 1,284 4,532
INterIM report JaNuarY – SepteMber 2015
– 4 –
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100
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214
Q1-13 -14 -15
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Q4-13 -14 -15
201320142015
Cash flow from operating activities, per quarter, SEKm
Cash flow, investments and financial position
CashflowfromoperatingactivitiesamountedtoSEK837million(702).Theincreaseismainlyduetoapositivechangeinworkingcapital.Investmentsinproperty,plantandequipmentamountedtoSEK258million(82)andinvestmentsinsharesamountedtoSEK1million(1).Salesofproperty,plantandequipment,primarilyforestproperties,amountedtoSEK181million(45).CashflowincludesadividendfromtheassociatecompanySetraGroupABofSEK32million. Sveaskog’sinterest-bearingnetdebtat30SeptemberamountedtoSEK8,174million(8,279).Attheendoftheperiod,theloanportfoliomostlycomprisedloansissuedunderSveaskog’sMTNprogrammeaswellasaSwedishcommercialpaperprogramme.Approximately4%oftheportfolioconsistsofbankfinancing.TheloanvolumeunderthecommercialpaperprogrammeamountedtoSEK2,721million(2,520)andisrefinancedregularly.UndertheMTNprogrammetheoutstandingvolumeat30SeptemberwasSEK4,890million(5,190).Thelowestaveragefixedinterestperiodduringthenine-monthperiodwasapproximately30months. Thenetdebt/equityratioamountedto0.44(0.47). Interestcoverfortheperiodamountedto5.7(4,3)andthegrossborrowingcostwas2.00%(2.65).
parent Company
SveaskogAB(publ.),100%ownedbytheSwedishstate,ownsandmanagesforestpropertiesandsharesinsubsidiariesandisresponsibleforGroup-widefinancing.OperatingincomeforSveaskogAB(publ.)inthefirstninemonthsoftheyearamountedtoSEK11million(10).LossafternetfinancialitemswasSEK182million(–261).TheParentCompany’scostsmainlycompriseinterestexpenses.Thecompanyhasnoemployees.
Setra Group ab
Sveaskogowns50%ofthesharesinthewoodproductscompanySetraGroupABwhichisreportedasanassociate.Shareofprofitsofassociatesisrecognisedintheconsolidatedincomestatement.NetsalesfortheperiodJanuary–SeptemberamountedtoSEK3,232million(3,162).OperatingprofitamountedtoSEK78million(192).TheearningstrendisaresultofalessfavourablemarketsituationwhichwascounteractedbyaweakerSwedishkronaandcompletedefficiencyimprovements.EarningsincludediscontinuationcostsofSEK21millionfortheplaningmillinValbo.Sveaskog’sshareofthecompany’sprofits,adjustedforintra-groupprofits,decreasedby58%forthefirstninemonthsof2015toSEK27million(64).
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4,000
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8,174
Q1-13 -14 -15
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201320142015
Interest-bearing net debt, SEKm
Market situation and timber deliveriesSveaskogconductstradinginwoodrawmaterialinSwedenandmorethanhalfofthematerialistakenfromthecompany’sownforests.Themainproductrangeissawlogs,pulpwoodandchips,andbiofuel.MostofSveaskog’scustomersareinSwedenbuttheyexportalargeproportionoftheirproductsworldwide. TheSwedishforestindustry’slargestmarketforpaperpulp,paperandsawnwoodproductsisEuropeincludingSweden.EconomicgrowthinEuropeisincreasingwhiletherateofincreasehasslowed.GrowthanddemandremainweakinseveralEuropeancountries.TheWorldTradeOrganization(WTO)recentlylowereditsworldtradeforecastwhichithasdoneonseveralpreviousoccasions.OutsideEuropethereisuncertaintyaboutChina’seconomicsituation.Theearlierhighgrowthfigureshavebeenloweredandthereliabilityofstatisticsquestioned.IntheUS,theeconomicrecoveryhasimprovedbutataslowerratethanexpected.TheSwedisheconomyisstrengthening.
Change, operating profit from continuing operations July–Sept Jan–Sept
2014 220 852Price, own wood raw material –3 0Delivery volume, own wood raw material 4 27Change in stocks 9 –97VAT remission 0 36Capital gain development land 47 47Other 18 53 Total 75 662015 295 918
INterIM report JaNuarY – SepteMber 2015
– 5 –
Oilpricesareatverylowlevelswhichshouldaffectcontinuedgrowth.ThedollarremainsstrongbuttheSwedishkronaisstrengtheningsteadily.Therehavebeenconsiderablefluctuationsinexchangerates.
SaWMILLS
ConstructioninEuropeisatastablebutstillrelativelylowlevel.IntheUS,constructionisrisingbutthechangemainlyappliestoapartmentblocks.ExportsofsawnwoodproductstotheUSfromEuropeandSwedenarerisingbutCanadaisstillbyfarthebiggestexporter.ImportsfromEastAsia,excludingChinaandJapan,havefallensomewhatfollowinganearlierrise.WoodproductpricesarefallinginChinaandEgypt.Takenoverall,thereisstillasurplusofsawnproducts. InSwedenproductionofsawnwoodproductsisatahighlevelandstockshaverisen. Swedishdemandwashighandexportshaverisen.DemandhasalsobeensurprisinglyhighinNorthAfricaandtheMiddleEastagainsttheback-groundofthepoliticaluncertaintyintheregion.TheUKisstillSweden’slargestsingleexportcountrywithgooddemandthusfar.ExportstoChinaincreasedearlieratanaverageevenratebutarenowfallingduetolowerdemandandsharplyfallingprices. Thesawmillswerewellsuppliedwithsawlogs.Rawmaterialstockshavebeenrelativelyhighbutarenowshowingsignsofdecreasing.Sawlogpriceschangedmarginally.Sveaskog’s deliveries
Sveaskogdelivered977(949)thousandm3subofsawlogsinthethirdquarterwhichis3%higherthaninthecorrespondingperiodlastyear.
puLp aND paper INDuStrY
Globally,deliveriesofpaperpulpareincreasing.Stocklevelshaverisenatproducers,inportsandatbuyers.Almost80%ofSwedishexportsgotoEuropewhereeconomicgrowthhasimprovedbutataslowrate.Thepriceoflong-fibresulphatepulphasfallensteadily.Swedishexportlevelsarelargelyunchanged. Demandforgraphicpaperproductscontinuestofall.Ontheotherhandanimprovementcanbeseenformanyotherproductssuchascartonboardforpackagingandpackagingpaper.Swedishproductionhereisatahighlevel.Intotal,theexportvolumeiscomparablewiththepreviousyear’slevel.Theperiodwascharacterisedbygoodavailabilityforpulpwoodandcellulosechips.Significantvolumesarealsoimported.Earlierpricereductionsforpulpwoodhavelevelledout.
Sveaskog’s deliveries
Sveaskogdelivered1,201(1,209)thousandm3subofpulpwoodandchipsinthethirdquarterwhichis1%lowerthaninthecorrespondingperiodlastyear.
bIoFueL MarKet
Thecontinentalpelletsmarketischaracterisedbyoversupplyandfallingprices. InSweden,energyproductionbasedonbiofuelisregionalorlocal.Demandforwood-basedbiofuelhasbeenweak.Themainreasonsareothercompetingfuelssuchaswaste,moreefficientproductionanddistributionofenergyaswellaslowelectricityprices.Productionoffellingresidues(branchesandtops)isfalling.
Sveaskog’s deliveries
Sveaskogdelivered103(122)thousandm3subofbiofuelinthethirdquarterwhichis16%lessthaninthecorrespondingperiodlastyear.
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104
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201320142015
Delivery volume biofuel, thousand m3sub
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1,202
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201320142015
Delivery volume, pulpwood and chips, thousand m3sub
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977
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201320142015
Delivery volume sawlogs, thousand m3sub
INterIM report JaNuarY – SepteMber 2015
– 6 –
Group
Condensed income statement
3months 9months 12months
July–Sept July–Sept Jan–Sept Jan–Sept oct 2014– FullyearSEKm 2015 2014 2015 2014 Sept 2015 2014
Netsales 1,284 1,309 4,532 4,591 6,173 6,232
Otheroperatingincome 51 6 60 27 88 55
Rawmaterialsandconsumables –326 –367 –1,188 –1,320 –1,632 –1,764
Changeininventories 41 37 –148 –23 –43 82
Otherexternalcosts –619 –623 –1,885 –1,963 –2,655 –2,733
Employeebenefitexpenses –117 –118 –385 –388 –519 –522
Depreciation –19 –24 –68 –72 –92 –96
operating profit from continuing operations 295 220 918 852 1,320 1,254
Capitalgainsfrompropertysales 9 7 55 5 118 68
Shareofprofitsofassociates –5 6 27 64 27 64
operating profit before change in value of forest assets 299 233 1,000 921 1,465 1,386
Changeinvalueofforestassets(Note1,2) 83 120 515 312 1,235 1,032
operating profit 382 353 1,515 1,233 2,700 2,418
Financialitems –47 –63 –157 –198 –220 –261
profit before tax 335 290 1,3581,035 2,480 2,157
Tax –75 –63–293 –214 –545 –466
profit for the period/year 260 227 1,065 821 1,935 1,691
Earningspershare,SEK,beforeandafterdilution 2.20 1.92 8.99 6.93 16.34 14.28
-calculatedontheaveragenumberofshares,million 118.4 118.4 118.4 118.4 118.4 118.4
Statement of comprehensive income
3months 9months 12months
July–Sept July–Sept Jan–Sept Jan–Sept oct 2014– FullyearSEKm 2015 2014 2015 2014 Sept 2015 2014
profit for the period/year 260 227 1,065 821 1,935 1,691
other comprehensive income
Componentsthatwillnotbereversedinprofitorloss
Actuarialgains/lossesonpensions* – – – – –108 –108
Taxonactuarialgains/losses* – – – – 24 24
Componentsthatcanbereversedinprofitorloss
Exchangedifferences 0 0 0 0 0 0
Cashflowhedges –4 –20 10 –85 –21 –116
Taxattributabletocashflowhedges 1 5 –2 19 5 26
total other comprehensive income for the period/year net after tax –3 –15 8 –66 –100 –174
total comprehensive income for the period/year 257 212 1,073 755 1,835 1,517
*Actuarialcalculationsareonlyperformedperfullyear.
INterIM report JaNuarY – SepteMber 2015
– 7 –
Group
Condensed balance sheet
SEKm 30 Sept 2015 30Sept2014 31Dec2014
aSSetS (Note3)
Non-current assets
Intangibleassets 1 3 2
Property,plantandequipment
Forestland(Note1,2) 2,322 2,168 2,174
Otherproperty,plantandequipment 527 525 534
Biologicalassets–standingtimber(Note1,2) 30,843 29,672 30,344
Financialassets 499 498 503
total non-current assets 34,192 32,866 33,557
Current assets
Inventories 573 630 740
Currentreceivables,etc.,non-interestbearing 1,620 1,482 1,561
Cashandcashequivalents 1,815 1,680 1,345
total current assets 4,008 3,792 3,646
totaL aSSetS 38,200 36,658 37,203
eQuItY aND LIabILItIeS
equity 18,736 17,701 18,463
Non-current liabilities (Note3)
Interest-bearingliabilitiesandprovisions 5,794 6,543 6,536
Otherliabilitiesandprovisions 7,987 7,685 7,898
total non-current liabilities 13,781 14,228 14,434
Current liabilities (Note3)
Interest-bearingliabilities 4,195 3,417 3,016
Otherliabilities 1,488 1,312 1,290
total current liabilities 5,683 4,729 4,306
totaL LIabILItIeS 19,464 18,957 18,740
totaL eQuItY aND LIabILItIeS 38,200 36,658 37,203
Condensed statement of changes in equity
SEKm Jan–Sept 2015 Jan–Sept2014 Fullyear2014
opening equity, 1 January 18,463 17,397 17,397
Totalcomprehensiveincome 1,073 755 1,517
DividendpaidinaccordancewithAGMdecision –800 –450 –450
Closing equity at the end of the period/year 18,736 17,701 18,463
INterIM report JaNuarY – SepteMber 2015
Group
Condensed statement of cash flows
SEKm Jan–Sept 2015 Jan–Sept2014 Fullyear2014
operating activities
Operatingprofit 1,515 1,233 2,418
Adjustmentfornon-cashitems,etc. –614 –376 –1,236
Interestreceived 10 20 21
Interestpaid –167 –218 –267
Paidtax –179 –109 –120
Cash flow from operating activities before change in working capital 565 550 816
Changeinworkingcapital 272 152 –47
Cash flow from operating activities 837 702 769
Investing activities
Investmentsinproperty,plantandequipment –258 –82 –132
Investmentsinshares –1 –1 –1
Dividendfromassociate 32 – –
Saleofproperty,plantandequipment 181 45 194
Cash flow from investing activities –46 –38 61
Financing activities
Dividendpaid –800 –450 –450
Changeinfinancialliabilities 479 311 –190
Cash flow from financing activities –321 –139 –640
Cash flow for the period/year 470 525 190
Cash and cash equivalents, opening balance 1,345 1,155 1,155
Cash and cash equivalents, closing balance 1,815 1,680 1,345
– 8 –
INterIM report JaNuarY – SepteMber 2015
Parent Company
Condensed income statement
3months 9months 12months
July–Sept July–Sept Jan–Sept Jan–Sept oct 2014– FullyearSEKm 2015 2014 2015 2014 Sept 2015 2014
Operatingincome 4 4 11 10 17 16
Operatingexpenses –1 6 –2 –9 2 –5
operating profit 3 10 9 1 19 11
Financialitems –63 –80 –191 –262 57 –14
profit/loss before tax –60 –70 –182 –261 76 –3
Tax 13 15 40 57 –17 0
profit/loss for the period/year * –47 –55 –142 –204 59 –3
*SameasTotalcomprehensiveincomefortheperiod/year.
Condensed balance sheet
SEKm 30 Sept 2015 30Sept2014 31Dec2014
aSSetS Non-current assets Property,plantandequipment 56 56 56total property, plant and equipment 56 56 56
Financial assets
Sharesandparticipations 24,934 24,934 24,934
Receivablesfromgroupcompanies,interest-bearing 2,410 2,310 2,410
total financial assets 27,344 27,244 27,344total non-current assets 27,400 27,300 27,400
Current assets Currentreceivables,etc.,non-interestbearing 174 86 354Receivablesfromgroupcompanies,interest-bearing 276 43 0
Cashandcashequivalents 0 0 0total current assets 450 129 354totaL aSSetS 27,850 27,429 27,754
eQuItY aND LIabILItIeS
equity 9,920 10,661 10,862
Non-current liabilities
Interest-bearingnon-currentliabilities 5,186 5,987 5,886
Otherprovisions 1 3 1total non-current liabilities 5,187 5,990 5,887
Current liabilities
Interest-bearingliabilitiesandprovisions 12,686 10,712 10,938
Otherliabilitiesandprovisions 57 66 67total current liabilities 12,743 10,778 11,005totaL eQuItY aND LIabILItIeS 27,850 27,429 27,754
– 9 –
INterIM report JaNuarY – SepteMber 2015
Parent Company
Condensed statement of cash flows
SEKm Jan–Sept 2015 Jan–Sept2014 Fullyear2014
Cash flow from operating activities –250 163 130
Cash flow from investing activities 1 –105 –197
Cash flow from financing activities 249 –58 67
total cash flow 0 0 0
Cash and cash equivalents, opening balance 0 0 0
Cash and cash equivalents, closing balance 0 0 0
– 10 –
Condensed statement of changes in equity
SEKm Jan–Sept 2015 Jan–Sept2014 Fullyear2014
opening equity, 1 January 10,862 11,315 11,315
DividendpaidinaccordancewithAGMdecision –800 –450 –450
Profit/lossfortheperiod/year –142 –204 –3
Closing equity at the end of the period/year 9,920 10,661 10,862
aCCouNtING prINCIpLeS
TheinterimreportfortheGroupispreparedinaccordancewithIAS34InterimFinancialReportingandtheSwedishAnnualAccountsAct.FortheParentCompanytheinterimreportispreparedinaccordancewiththeAnnualAccountsAct,whichisinaccordancewiththeregulationsinRFR2AccountingforLegalEntities.TheaccountingprinciplesandcalculationprinciplesappliedinthisreportfortheParentCompanyandtheGroupareunchangedcomparedwiththemostrecentlypublishedannualreport.NeworrevisedIFRSsandinterpretationsfromIFRIChavenothadanyeffectontheearningsorfinancialpositionoftheGrouportheParentCompany. AmountsarestatedinSEKmillionunlessotherwiseindicated.Figuresinparenthesesrefertothecorrespondingperiodinthepreviousyear.
Note 1 – CHaNGe IN VaLue oF ForeSt aSSetS
Themarket-relatedvalueofSveaskog’sforestassetsat30September2015hasbeencalculatedatSEK33,165million(31,840),ofwhichSEK30,843million(29,672)comprisesthefairvalueofstandingtimberandSEK2,322million(2,168)anidentifiedcostofland.Thechangeinthebalancesheetsinceyear-end2014amountstoSEK647million(309)andisspecifiedinNote2.Theassumptionsappliedwhencalculatingthemarketvalueofstandingtimberareunchangedandupdatedatyear-end.
Note 2 – bIoLoGICaL aSSetS, StaNDING tIMber aND ForeSt LaND Standing timberSEKm CostOpeningvalue,1January2014 29,375Acquisitionofstandingtimber 4Salesofstandingtimber 16Changesduetofelling –1,029Changesinfairvalue 1,341Reclassification –35Closingvalue,30September2014 29,672
Openingvalue,1January2015 30,344Acquisitionofstandingtimber 29Salesofstandingtimber –45Changesduetofelling –1,077Changesinfairvalue 1,592Closingvalue,30September2015 30,843
Forest landSEKm Openingvalue,1January2014 2,156Acquisitionofforestland 12Salesofforestland 0Closingvalue,30September2014 2,168 Openingvalue,1January2015 2,174Acquisitionofforestland 151Salesofforestland –3Closingvalue,30September2015 2,322
INterIM report JaNuarY – SepteMber 2015
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Note 3 – MeaSureMeNt at FaIr VaLueThe table below shows the Group’s assets, liabilities and derivatives measured at fair value:
Level1 Level2 Level3 Jan–Sept Jan–Sept Jan–Sept Jan–Sept Jan–Sept Jan–SeptSEKm 2015 2014 2015 2014 2015 2014
Assets
Standingtimber 0 0 0 0 30,843 29,672Totalassets 0 0 0 0 30,843 29,672
Liabilities Non-currentliabilities 0 0 5,228 6,040 0 0Currentliabilities 0 0 4,883 3,319 0 0Derivativeinstruments 0 0 187 170 0 0Totalliabilities 0 0 9,497 9,529 0 0
Measurement techniques for level 2 fair valueLiabilitiesaremeasuredatamortisedcost.Derivativesinlevel2consistofinterestrateswapsandarerecognisedatmarketvalueorashedgeaccounting.Measurementatfairvalueofinterestrateswapsisbasedonswapratesobtainedfromafinancialinformationsystemandconvertedtoazerocouponcurveformeasurement. Comparedwith2014,noreclassificationshavetakenplacebetweendifferentlevelsinthehierarchyandnosignificantchangeshavebeenmadewithregardtomeasurementmethods,dataorassumptionsapplied.
otHer INForMatIoN
risks and uncertainties
Adescriptionofrisks,uncertaintiesandriskmanagementisprovidedinSveaskog’s2014AnnualReport(inSwedish)onpages19–21.Noothersignificantchanges,inadditiontothosementionedinthisinterimreport,haveoccurredsincepublicationoftheannualreport.
Important events after the closing date
Noimportanteventshavetakenplaceaftertheclosingdate.
related-party transactions
Nosignificantchangeshaveoccurredinrelationsortransactionswithrelatedpartiescomparedwithwhatisdescribedinthe2014AnnualReport.AdividendofSEK800millionhasbeenpaidtotheownerfollowingadecisionattheAnnualGeneralMeeting.
TheBoardofDirectorsandtheCEOherebyconfirmthatthisinterimreportprovidesatrueandfairoverviewoftheParentCompany’sandtheGroup’soperations,theirfinancialpositionandperformance,anddescribesmaterialrisksanduncertainties
facingtheParentCompanyandothercompaniesintheGroup.
Stockholm,19October2015SveaskogAB(publ.)(556558-0031)
HeleneBiström EvaFärnstrand ThomasHahn Chairman BoardMember BoardMember
JohanHallberg BirgittaJohansson-Hedberg Anna-StinaNordmarkNilsson BoardMember BoardMember BoardMember
SofiaGilliusson SturePersson EmployeeRepresentative EmployeeRepresentative Per-OlofWedin PresidentandCEO
INterIM report JaNuarY – SepteMber 2015
– 12 –
For FurtHer INForMatIoN, pLeaSe CoNtaCt
Per-OlofWedin,PresidentandCEO,tel+4686559174,+46761304201PerMatses,DeputyCEOandCFO,tel+4686559290,+46706559820
www.sveaskog.se
FINaNCIaL CaLeNDarYear-endreport2015 29January2016AnnualReport2015 March2016InterimreportJanuary–March2016 26April2016
Sveaskog ab, Stockholm Torsgatan4,SE-10522Stockholm
Sveaskog ab, Kalix Torggatan4,Box315,SE-95223Kalix
telephone switchboard+47771787000TocontactSveaskog’semployees
telephone customer service+46771787100forquestionsaboutSveaskog’soperations
Capital turnover rateNetsalesdividedbyaverageoperatingcapital.
Equity ratioEquitydividedbytotalassets,allcalculatedattheendoftheperiod/year.
Interest-bearing net debtInterest-bearingliabilitiesminusinterest-bearingassets,allcalculatedattheendoftheperiod/year.
Interest coverOperatingprofitbeforechangeinvalueofforestassetsexcl.capitalgainsonpropertysalesplusfinancialincomedividedbyfinancialexpenses.
Net debt/equity ratioInterest-bearingnetdebtdividedbyequity.
Net earnings per shareProfitfortheperiod/yearaftertaxdividedbyaveragenumberofsharesduringtheperiod/year.
Definitions
Operating capitalTotalassetsexcludinginterest-bearingassets,taxassetsandassetsheldforsaleminusnon-interestbearingliabilitiesanddeferredtaxliabilities,allcalculatedattheendoftheperiod/year.
Operating marginOperatingprofitexpressedasapercentageofnetsales.
Operating profit from continuing operationsOperatingprofitbeforechangeinvalueofforestassets,shareofprofitsofassociatesandcapitalgainsfrompropertysales.
Return on equityProfitaftertaxexpressedasapercentageofaverageequity.
Return on operating capitalOperatingprofitdividedbyaverageoperatingcapital,excludingdeferredtax.
YieldOperatingprofitbeforechangeinvalueofforestassetsexcludingcapitalgainsonpropertysales,dividedbyaverageoperatingcapital,excludingdeferredtax.
Introduction
WehavereviewedtheinterimreportofSveaskogAB(publ)asof30September2015andthenine-monthperiodthenended.TheBoardofDirectorsandthePresidentareresponsibleforthepreparationandpresentationofthisinterimreportinaccordancewithIAS34andtheAnnualAccountsAct.Ourresponsibilityistoexpressaconclusiononthisinterimreportbasedonourreview.
Scope of review
WeconductedourreviewinaccordancewiththeInternationalStandardonReviewEngagements(ISRE)2410–ReviewofInterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity.Areviewofinterimfinancialinformationconsistsofmakinginquiries,primarilytopersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.AreviewhasadifferentfocusandissubstantiallylessinscopethananauditconductedinaccordancewithInternationalStandards
Auditor’s review
onAuditingandothergenerallyacceptedauditingpractices.Theproceduresperformedinareviewdonotenableustoobtainassurancethatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Therefore,theconclusionexpressedonthebasisofareviewdoesnotgivethesamelevelofassuranceasaconclusionexpressedonthebasisofanaudit.
Conclusion
Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheinterimreportisnotprepared,inallmaterialrespects,fortheGroupinaccordancewithIAS34andtheAnnualAccountsAct,andfortheParentCompanyinaccordancewiththeAnnualAccountsAct.
Stockholm,19October2015
DeloitteABHansWarén,AuthorisedPublicAccountant
INterIM report JaNuarY – SepteMber 2015