Broström is one of the leading logistics companies for the oil and chemical industry, focusing on industrial product and chemical tanker shipping and marine services. Broström is based worldwide and operates within two areas: Shipping and Marine & Logistics Services. Broström’s head office is located in Göteborg, Sweden.
Press Release INTERIM REPORT 1 JANUARY–31 MARCH 2006 Broström AB (publ) – Reg. no. 556005-1467
•
Strong start to 2006 -
•
Profit after net financial items for the first quarter SEK 310 m (162) -
•
Net sales SEK 953 m (760, of which 106 pertains to the sold subsidiary Nordic Bulkers AB). Profit after tax SEK 256 m (136). Earnings per share SEK 7.74 (4.17). Return on capital employed 20.3% (16.6%).
Cash flow and disposable liquidity -
•
2006 started out with a strong freight market, followed in the later part of the quarter by a downturn in the market, primarily for large tonnage. Cold weather in northern Europe affected Broström, with its large fleet of ice-classed vessels, favourably. Implemented acquisitions and new partnerships entered into in 2005 are contributing to greater capacity utilisation of Broström’s fleet and are having a steadily greater impact on Broström’s earnings.
Cash flow per share SEK 7.99 (5.79). Disposable liquidity amounted to SEK 1,512 m (1,295 on 31 December 2005).
Change in transport capacity during the first quarter -
The BRO STELLA was sold and delivered. The BRO PROMOTION (formerly the IVER EXAMPLE) and the BRO PREMIUM (formerly the IVER EXACT) were acquired. Broadened partnership with Dünya will be adding six newly built vessels (17,000 dwt, ice class 1A) to Broström’s fleet within two years.
Outlook for 2006 The start of the second quarter of 2006 has been characterised by a seasonal downturn of the spot market in Broström’s market segments. Warmer weather is lowering demand for fuel oil, and depots are being emptied to create room for fuel that is more suitable for summer use. In addition, the customary build-up of gasoline stocks has been delayed because more refineries than usual have been shut down for scheduled maintenance this year. Structural changes in the market and widening regional imbalances are giving rise to a continued greater need for transport in Broström’s segment. The outlook for 2006 as a whole continues to be favourable.
1
First quarter
Full year
SEK m
2006
2005
2005
Net sales
952.9
760.4
3,818.1
Operating profit (EBIT)
351.0
183.0
812.4
Profit after net financial items
310.1
161.6
720.1
Profit for the period
256.0
136.3
622.9
Investments
683.1
147.6
1,620.0
Cash flow from operating activities
260.6
185.5
619.3
1,511.8
1,034.1
1,294.9
Return on capital employed, %
Disposable liquidity
20.3
16.6
15.9
Equity/assets ratio II, %
37.1
40.3
37.2
Profit before tax per share, SEK
9.51
5.04
22.26
Net profit per share, SEK
7.74
4.17
18.89
Net profit per share after dilution, SEK
7.69
4.09
18.76
7.99 32,622,842
5.79 32,046,143
19.15 32,346,920
Cash flow from operating activities per share, SEK Average number of shares
that damaged refineries in the USA. Since there is currently no refinery overcapacity, this production shortfall could not be compensated from other locations; instead, stocks were built up gradually in late 2005/early 2006 to enable these maintenance shutdowns. This was one of the underlying factors to the favourable freight market during these periods.
ACTIVITIES Shipping Market overview The year started out with a strong freight market, however, as a result of the warm weather in the US for this time of year, combined with higher stock levels, imports decreased at the same time that an unusually large number of refineries in Asia have been shut down for scheduled maintenance, which had a negative impact on activity. Altogether this resulted in a weak freight market towards the end of the period, especially for large tanker tonnage. The European market has been more stable, largely due to the relatively cold winter, which has stimulated the import of oil products from Russia. In addition, ice conditions in the Baltic Sea have been favourable for ice-classed tonnage.
Supply and demand in the oil energy sector is largely in balance, entailing that small disruptions in the production and distribution chain have a rapid impact on the freight market. As a result, spot market prices for shipments will fluctuate sharply in the coming years, and they will increasingly be made over longer distances. This will have a favourable effect on the transport sector and lead to a greater need for vessels. In this market scenario, the ability to swiftly adapt to market changes and at the same time offer reliable transports will be increasingly significant. Critical mass and geographic presence will be increasingly important competitive advantages in a market in which the number of transported tonne-miles is increasing.
In the late first quarter/early second quarter of 2006, several refineries have closed for scheduled maintenance, which is resulting in a lower volume of refined oil products reaching the market. Several refineries were granted dispensation for several months from maintenance shutdowns that were scheduled for autumn 2005 due to the repercussions of the hurricanes
The shipyards’ orderbooks remain well-filled, and newbuilding prices continue to be high, even though a slight levelling out has been
2
The BRO DELIVERER (14,500 dwt) was delivered in early April from the shipyard in China. This vessel is wholly owned by Broström and will be employed in Broström’s European traffic together with other vessels in the same size segment. An additional three sister vessels remain to be delivered from the Chinese shipyard to Broström. Delivery of two of the vessels is scheduled for 2006 and of one in 2007.
noted. The price trend for second-hand quality tonnage is following the same pattern. Development for Broström During the period, Broström continued to strengthen its positions in product and chemical tanker shipping, and an additional two vessels were taken over. The BRO STELLA was sold and delivered in early March to the buyer. The first quarter started out with a strong freight market in Broström’s segment, but was followed during the later part of the quarter by a downturn in the market, mainly for large tonnage. The cold weather in northern Europe affected Broström, with its large fleet of iceclassed vessels, favourably. The ice situation is such that ice conditions will remain during a longer period in 2006 than a year ago.
In mid-March, the partnership with Dünya Shipping was expanded to also include six product and chemical tankers that are currently being built in Turkey. The vessels are of 17,000 dwt, ice class 1A, and Broström and Dünya will each own three. The vessels will be employed in Broström’s European traffic, and deliveries will take place successively starting in autumn 2006 through early 2008.
Broström’s focus on contracts of affreightment, where such business volume accounts for 50%-60% of total capacity, has enabled the company to maintain steady and high capacity utilisation during the period. The acquisitions made and new partnerships entered into in 2005 are now steadily contributing to higher fleet employment and improved capacity utilisation of Broström’s fleet, which is gradually having a greater impact on Broström’s earnings.
In early March the BRO STELLA (69,930 dwt, built in 1995) was delivered to her buyers. The sale generated a capital gain of SEK 89.7 m and a liquidity contribution of SEK 226.5 m. Tonnage tax Starting in 2004, Broström’s entire French operation is affiliated with the tonnage tax system, in accordance with the EU’s shipping policy. In Sweden a proposal on the introduction of a tonnage tax has now been submitted. This proposal entails that Sweden will also adopt the EU’s maritime policies and thereby achieve competitive neutrality with respect to other maritime nations within the EU. The proposal, which is expected to be adopted by Sweden’s Parliament in 2006, is proposed to apply for the 2005 tax year. Since a formal decision has not been made as of this report’s publication, this report has been prepared in accordance with the old system of traditional taxation. However, as soon as a formal decision has been made, Broström intends to apply for affiliation to the tonnage tax system, provided that the pending proposal is approved in its entirety.
Broström’s commercial fleet currently comprises approximately 80 vessels. After the newbuildings on order have been delivered to Broström within the next two years, the commercial fleet will amount to approximately 100 vessels. Broström intends in the future to continue taking advantage of possible consolidation opportunities in the segments in which the company is active. Changes in the fleet In February the BRO PROMOTION (formerly the IVER EXAMPLE,) and the BRO PREMIUM (formerly the IVER EXACT) – both of 45,700 dwt – were taken over. These vessels were already part of Broström’s commercial fleet but were owned by the Dutch company Vroon. Broström now owns 100% of both vessels.
Of the total deferred tax in the balance sheet as per 31 March 2006, amounting to SEK 514.4 m, SEK 459.3 m is attributable to the Swedish shipping operations.
3
Sales and profit Q1 2006 Net sales for the Shipping operations area amounted to SEK 850.0 m (564.4) for the first quarter of 2006. The increase reflects the growth that Broström has achieved through successive acquisitions in 2005 and 2006.
October 2005. Sales in 2005 excluding Nordic Bulkers AB totalled SEK 89.8 m. Operating profit was SEK 2.9 m (4.3), which is satisfactory. Marine & Logistics Services First quarter
Operating profit was SEK 354.1 m (168.2). Development and profit during the first quarter were satisfactory.
Full year
SEK m
2006
2005
2005
Net sales
101.8
195.9
743.3
2.9
4.3
22.7
Operating profit
Shipping First quarter
Full year
SEK m
2006
2005
2005
Net sales
850.0
564.4
3,073.0
Operating profit
354.1
168.2
807.3
EXCHANGE RATE MOVEMENTS Broström is affected by exchange rate movements primarily of the USD rate to SEK. See the section “Financial position and liquidity”.
Marine & Logistics Services
GROUP FINANCIAL RESULTS
Market overview The business travel market showed growth during the period. Marine travel experienced strong growth in volume as a result of the positive trend in the shipping industry.
Net sales of the Group for the period amounted to SEK 952.9 m (760.4). Sales in 2005 excluding Nordic Bulkers AB totalled SEK 654.3 m, entailing volume growth of 45.6% for existing operations.
Development for Broström Broströms Resebyrå noted a rise in sales and significant earnings improvement compared with a year ago. Business travel is following the favourable trend in the market. Online bookings have also risen through the launch of a new self-booking system. Marine travel is showing continued favourable growth in volume, partly derived from existing customers but mostly through new customers. The office in Manila, which opened in late 2005 and specialises in marine travel, is contributing to this increase.
The share in associated companies’ profit was SEK 0.6 m (1.4). Operating profit was SEK 351.0 m (183.0). Net interest expense amounted to SEK -39.6 m (-22.6). The USD Libor (6 months) interest rate changed during the period, from 4.7% on 31 December 2005 to 5.1% on 31 March 2006. Net financial items amounted to SEK -40.9 m (-21.4), which resulted in a profit of SEK 310.1 m (161.6) after net financial items. The return on capital employed was 20.3% (16.6%).
Activity has been high at most ports at which Broström Ship Agency Network is represented. This applies in particular to ports at which Broström is involved in tanker clearing. The earnings trend has remained favourable for the business area.
Tax expenses during the period amounted to SEK -54.1 m (-25.3), corresponding to 17.4% (15.7%) of profit before tax. Paid tax amounted to SEK -1.9 m (-0.4). The figures for the period include capital gains of SEK 89.7 m (48.7) on sales of vessels and operations.
Sales and profit Q1 2006 Net sales for the Marine & Logistics Services operations area for the first quarter amounted to SEK 101.8 m (195.9). The decrease is attributable to the sale of Nordic Bulkers AB in
4
Breakdown by operational areas First quarter SEK m
2006
refinery capacity will fall short of the growing demand in the years ahead. Shipments are being made over ever-greater distances, and regional imbalances are expected to continue rising. The rapidly growing Chinese economy, US oil needs and Russian exports of oil over the Baltic Sea are also contributing to high demand for the transportation of oil and chemical products.
Full year
2005
2005
Net sales Shipping
850.0
564.4
3,073.0
M & L Services
101.8
195.9
743.3
Other
1.1
0.1
1.8
952.9
760.4
3,818.1
354.1
168.2
807.3
2.9
4.3
22.7
- 6.0
10.5
- 17.6
351.0
183.0
812.4
Operating profit Shipping M & L Services Other and joint expenses for the Group
The increasingly stringent requirements being made by authorities and customers with respect to quality, safety and the environment are putting higher demands on the overall organisation that is involved in the logistics chain. Together these factors point to a continued favourable development for Broström, and the outlook for 2006 as a whole remains favourable. Completed acquisitions and established partnerships are expected to gradually contribute to improved earnings in pace with the addition of vessels to Broström’s fleet.
MAJOR DEVELOPMENTS AFTER THE PERIOD The BRO DELIVERER (14,500 dwt) was delivered in early April from the shipyard in China. The vessel is wholly owned by Broström and has been employed in Broström’s European operations.
The shipyards’ orderbooks are at historically high levels in Broström’s vessel segments, and a large number of vessels will be delivered in the years immediately ahead. In Broström’s view, however, this addition of tonnage will be offset to a large degree by the major need for replacement and structural changes in the market.
Broström has in April together with Erik Thun AB signed an agreement to build a further two product tankers at the shipyard Ferus Smit B.V. in the Netherlands. The vessels, of 7,500 dwt, ice class 1A, will be owned by Broström and Thun on a 50/50 basis and they will join Broström’s service on the North European market. The vessels will be delivered in March and in July 2009.
The value of the US dollar relative to the Swedish krona is an uncertainty factor to note. All else equal, a weakening of the US dollar would have a negative impact on Broström’s sales, earnings and shareholders’ equity, while a strengthening would have a positive effect.
OUTLOOK The spot market has during the start of the second quarter of 2006 been characterised by a seasonal downturn in Broström’s markets segment, which is customary for the spring. Warmer weather lowers demand for fuel oil, and depots are emptying their tanks of wintergrade products to make room for fuel that is more suitable for summer use. In addition, the customary build-up of gasoline stocks has been pushed back because more refineries than usual have been shut down for scheduled maintenance shut this year. In pace with the completion of this maintenance, market activity is expected to rise again.
INVESTMENTS AND DIVESTMENTS Total investments within the Group during the period amounted to SEK 683.1 m (147.6). Divestments totalled SEK 315.5 m (184.9). Of total investments, SEK 682.2 m (87.6) pertained to vessels and newbuilding contracts. During the first quarter the BRO STELLA (69,930 dwt, built in 1995) was delivered to her buyer. The sale generated a pre-tax gain of SEK 89.7 m and a cash contribution of SEK 226.5 m.
The oil energy market today is essentially in balance, and it appears that the expansion of
5
Broström’s financial position is strong and enables continued participation in possible structural changes in the industry.
Following delivery of the BRO DELIVERER to Broström in April 2006, Broström is currently involved in investments in six newbuildings. Additional vessels and newbuildings will be added to the fleet under various partnerships.
PLEDGED ASSETS AND CONTINGENT LIABILITIES
Newbuildings on order Name
Delivery
Dwt
Ownership
NB JLZ 508
2006
14,500
100%
NB JLZ 509
2006
14,500
100%
NB JLZ510
2007
14,500
100%
NB Dünya
2007
17,000
100%
NB Dünya
2007
17,000
100%
NB Dünya
2007
17,000
100%
Pledged assets increased by SEK 312.4 m and amount to SEK 5,794.6 m (5,482.1 on 31 December 2005). Contingent liabilities decreased by SEK 7.1 m since the start of the year and amount to SEK 106.8 m (113.9 on 31 December 2005).
Partner
WARRANT PROGRAMMES As per 31 March 2006 Broström has two warrant programmes in effect, of which one was introduced in 2003 and the other in 2005. The programmes have been offered to all permanent employees of the Group and to employees of partly owned companies in which Broström’s ownership is more than 50%.
Broström’s updated fleet list can be found at www.brostrom.se.
CASH FLOW Cash flow from operating activities before the shareholder dividend amounted to SEK 260.6 m (185.5), or SEK 7.99 (5.79) per share.
The warrant programme from 2003 consists of two warrant series with exercise dates in September 2005 and September 2006, respectively. Each employee was entitled to 2,000 warrants. If the programme was not fully subscribed, an additional maximum of 100,000 warrants could be subscribed. The price of each warrant was SEK 3.80 in series 2003/1 and SEK 4.35 in series 2003/2. An offer was also made in autumn 2004 to all new employees. The price then was SEK 34.00 per warrant in both series. Each warrant entitles its bearer to subscribe for one share at the exercise price of SEK 58.40. In September 2005, 275,750 warrants were redeemed. The total number of exercised warrants on 31 March 2006 was 275,750.
FINANCIAL POSITION AND LIQUIDITY The Group’s disposable liquidity on the balance sheet date amounted to SEK 1,511.8 m (1,294.9 on 31 December 2005). This amount includes unutilised overdraft facilities totalling SEK 52.5 m (52.5). Net debt increased during the period from SEK 2,577.5 m to SEK 2,612.9 m, mainly due to investments in vessels. Shareholders’ equity on the balance sheet date, according to the new accounting standards, amounted to SEK 2,899.0 m (2,709.5 on 31 December 2005), and the equity/assets ratio I was 34.5% (34.2%). The equity/assets ratio II was 37.1 % (37.2%), which is above Broström’s target of 30%.
There were no outstanding warrants on the balance sheet date. The warrant programme entails increases of 0.8% and 0.5%, respectively, in the number of shares and votes. The dilutive effect in terms of value was 0.6% on the balance sheet date.
It should be noted that in connection with the implementation of IFRS, the company has decided not to restate the book value of its vessels. With today’s market values of the Broström fleet it can be asserted that a substantial overvalue exists compared to booked values.
The warrant programme from 2005 consists of two warrant series with exercise dates in September 2007 and September 2008, respectively. Each employee was entitled to 1,250 warrants. If the programme was not fully sub-
6
First quarter
scribed, an additional maximum of 98,750 warrants could be subscribed. The price of each warrant was SEK 6.25 in series 2005/1 and SEK 8.50 in series 2005/2. Each warrant entitles its bearer to subscribe for one share at the exercise price of SEK 157.20. The total number of exercised warrants on 31 March 2006 was 366,550. The remaining number of warrants was 33,450.
SEK m
2006
2005
2005
8.3
7.2
29.2
-12.2
4.4
429.6
-
-
436.5
Fixed assets
1,975.4
1,921.3
1,976.3
Current assets
2,186.5
899.4
1,956.2
Total assets
4,161.9
2,820.7
3,932.5
Shareholders’ equity
1,757.6
1,422.3
1,766.3
Net sales Profit before allocations and tax Of which, dividends from subsidiaries and associated companies
Exercised warrants in the programme entail increases of 1.2% and 0.8%, respectively, in the number of shares and votes.
Untaxed reserves
The dilutive effect in terms of value was 0.2% on the balance sheet date.
STAFF The number of employees has not changed significantly.
Full year
3.4
-
3.4
Long-term liabilities
1,071.8
192.0
1,077.1
Short-term liabilities
1,329.1
1,206.4
1,085.7
Total liabilities and shareholders’ equity
4,161.9
2,820.7
3,932.5
Investments
0.5
0.6
92.4
Divestments
-
17.9
68.8
1,335.3
832.1
1,092.0
52.5
37.3
52.5
PARENT COMPANY
Disposable liquidity
The activities of the parent company, Broström AB, consist mainly of Group management and administration of joint activities for the Group. The assets consist mainly of shares in subsidiaries and short-term financial investments.
Of which, unutilised overdraft facilities
ACCOUNTING PRINCIPLES This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles of the parent company have been prepared in accordance with RR 32 and the Swedish Annual Accounts Act. Starting on 1 January 2005 the Broström Group applies the International Financial Reporting Standards (IFRS) approved by the EU, along with the additional rules stipulated by recommendation RR30 of the Swedish Financial Accounting Standards Council. The Group applies the same accounting principles and calculation methods in the interim report as in the most recent annual report. The Group has analysed the IFRSs and interpretations that took effect on 1 January 2006. These have not affected the Group’s reporting.
7
pact on Broström’s earnings or financial position.
The Group has also analysed the IFRSs and interpretations that have not yet taken effect nor which have been applied in the 2005 Annual Report. Only IFRS 7 Financial Instruments: Disclosures, which takes effect in 2007, is expected to apply for the Group. This new standard pertains to the scope and content in the disclosure of financial instruments and risks in the Annual Report, and upon application it is not expected to have any material im-
FUTURE REPORTS Broström will release financial reports on the following dates in 2006: 25 31
August October
Interim report six months 2006 Interim report nine months 2006
Göteborg, 3 May 2006 BROSTRÖM AB (publ) On behalf of the Board Lennart Simonsson Managing Director
Broström AB 403 30 Göteborg Sweden Tel +46 31 61 61 00 Reg. no. 556005-1467 This report has not been reviewed by Broström’s auditors. More information about Broström and press releases can be found at www.brostrom.se.
8
INCOME STATEMENTS First quarter
Full year
SEK m
2006
2005
2005
Net sales
952.9
760.4
3,818.1
Capitalised work for own account Other income, including sales of vessels
4.4
2.2
14.1
101.4
55.7
149.6
0.6
1.4
12.5
External expenses
-504.3
- 465.8
- 2,403.1
Personnel costs
-123.4
- 118.0
- 521.2
Depreciations
-80.6
- 52.9
- 257.6
Operating profit (EBIT)
351.0
183.0
812.4
Share in associated companies’ profit after tax
6.5
19.2
61.2
Financial expenses
-47.4
- 40.6
- 153.5
Net financial items
- 40.9
- 21.4
- 92.3
Profit after net financial items
310.1
161.6
720.1
Tax on profit for the period
- 54.1
- 25.3
- 97.2
Profit for the period
256.0
136.3
622.9
252.6
133.6
611.1
3.4
2.7
11.8
Financial income
The profit for the period attributable to Equity holders of the parent Minority interest Earnings per share, SEK
7.74
4.17
18.89
Earnings per share after dilution, SEK
7.69
4.09
18.76
Average exchange rate SEK/USD
7.78
6.92
7.48
Average exchange rate SEK/EUR
9.35
9.07
9.28
9
BALANCE SHEETS Group, SEK m
31 March 2006
31 December 2005
138.9
141.1
ASSETS Fixed assets Goodwill Other intangible fixed assets Tangible fixed assets Financial fixed assets, interest-bearing Financial fixed assets, non-interest-bearing Total fixed assets
3.6
3.7
5,807.8
5,549.7
27.5
27.9
65.0
64.8
6,042.8
5,787.2
Current assets Inventories
60.3
59.1
Short-term receivables
609.0
582.4
Derivative instruments
4.5
5.4
Short-term investments
237.4
260.6
Liquid assets
1,459.7
1,219.9
Total current assets
2,370.9
2,127.4
Total assets
8,413.7
7,914.6
SHAREHOLDERS’ EQUITY AND LIABILITIES 1) Shareholders’ equity
2,899.0
2,709.5
Equalisation reserve
192.1
205.3
Deferred tax
514.4
473.1
Long-term liabilities
Other long-term liabilities, non-interest-bearing
26.5
26.5
4,029.9
3,805.1
4,762.9
4,510.0
Current liabilities, interest-bearing 2 )
310.7
283.6
Current liabilities, non-interest-bearing
441.1
411.5
Total short-term liabilities
751.8
695.1
Total liabilities and shareholders’ equity
8,413.7
7,914.6
Pledged assets
5,794.6
5,482.1
106.8
113.9
Closing date exchange rate SEK/USD
7.75
7.95
Closing date exchange rate SEK/EUR
9.40
9.43
Long-term liabilities, interest-bearing
2)
Total long-term liabilities Short-term liabilities
Contingent liabilities
1)
Of which minority interest
38.0
34.8
2)
Of which financial leasing
862.4
938.2
CHANGES IN SHAREHOLDERS’ EQUITY Group, SEK m According to balance sheet, most recent year-end closing Exchange rate difference Derivative instruments, cash flow hedges after tax Profit for the period Dividend to shareholders and minority holders New issue Amount at the end of the period
2006 2,709.5 - 65.6 - 0.9 256.0 2,899.0
3 months 2005 1,799.5 144.6 136.3 90.5 2,170.9
Full year 2005 1,799.5 346.7 5.2 622.9 - 172.8 108.0 2,709.5
The exchange rate difference for the period is mainly due to changes in the USD exchange rate, which is the reporting currency for the subsidiaries and associated companies Broström Holding BV (incl. the subsidiary Broström Tankers SAS), Broström Tankers AB and Broström Tankers Ltd, respectively.
10
CASH FLOW STATEMENTS 2006
3 months 2005
Full year 2005
OPERATING ACTIVITIES Operating profit
351.0
183.0
812.4
Adjustments for items not included in the cash flow, etc.
- 46.0
- 4.3
47.1
Financial items
- 27.5
- 18.9
- 65.4
- 1.9
- 0.4
- 17.6
Change in working capital
- 15.0
26.1
- 157.2
Cash flow from operating activities
260.6
185.5
619.3
- 728.0
- 54.3
- 1,016.7
315.5
184.9
543.8
Group, SEK m
Paid tax
INVESTING ACTIVITIES Investments in fixed assets Sale of fixed assets Investment in subsidiaries
-
-
- 58.2
Sale of subsidiaries
-
-
37.1
Change in other financial fixed assets
0.6
- 21.6
2.7
Cash flow from investing activities
- 411.9
- 109.0
- 491.3
FINANCING ACTIVITIES Dividend to shareholders
-
-
- 161.7
Dividend to minority owners
-
-
- 11.1
New share issue
-
-
17.7
New loans
510.8
133.9
1,099.6
- 118.3
- 196.0
- 660.1
Cash flow from financing activities
392.5
- 62.1
284.4
Cash flow for the period
241.2
232.4
412.4
1,480.5
954.9
954.9
Cash flow for the period
241.2
232.4
412.4
Exchange rate difference
- 24.6
- 9.5
113.2
1,697.1
1,177.8
1,480.5
Repayment of loans
Liquid assets and short-term investments At start of the year
Liquid assets and short-term investments, closing balance
11
SHARE DATA 3 months
Full year
Full year
Per-share data
2006
2005
2005
2004
Earnings, SEK
7.74
4.17
18.89
16.33
Earnings after dilution, SEK
7.69
4.09
18.76
15.10
Shareholders’ equity, SEK
87.70
67.11
82.69
56.30
Shareholders’ equity after dilution, SEK
87.04
66.41
82.13
55.79
Cash flow from operating activities, SEK
7.99
5.79
19.15
14.65
Cash flow, net, excluding dividend, SEK
7.39
6.71
13.09
3.83
Cash flow, net, including dividend, SEK
7.39 172.50
6.71
12.75
- 0.67
119.00
160.00
98.75
Number of shares, closing date
32,622,842
32,347,092
32,622,842
31,394,806
Average number of shares
32,622,842
32,046,143
32,346,920
29,287,217
675,750
648,500
675,750
648,500
Share price on balance sheet date
Number of shares
Number of outstanding options
247,632
342,642
218,771
283,583
Number of shares after full dilution at end of period
Number of dilution shares
32,870,474
32,689,734
32,841,613
31,678,389
Average shares after full dilution at end of period
32,870,474
32,388,785
32,565,691
29,570,800
3 months
Full year
Full year
KEY RATIOS 2006
2005
2005
2004
Return on capital employed, %
20.3
16.6
15.9
9.9
Return on shareholders’ equity, %
36.5
26.9
27.1
30.0
Debt/equity ratio, multiple
0.9
0.7
1.0
0.9
Interest cover ratio, multiple
7.5
5.0
5.7
4.2
Equity/assets ratio I, %
34.5
35.4
34.2
32.5
Equity/assets ratio II, %
37.1
40.3
37.2
38.0
Share of risk-bearing capital, %
43.2
46.6
43.2
44.2
For definitions, please see 2005 Annual Report.
12