ANNUAL- AND SUSTAINABILITY REPORT
2018
OUR BUSINESS IS
GOOD CHEMISTRY
BUSINESS CONCEPT Our business concept is to sell, purchase, process and distribute chemical products to the base industries in Europe.
STRATEGY We have specialised expertise and resources in the field of liquid chemical products. Imports take place directly from the producer for our own production of directly-customised products, or to centrally located tanker terminals with our own logistics solution for the end customer. The company’s strategy is also to implement and optimise utilisation of the product with the end customer.
CONTENTS Statement by the CEO...............................................................................................5 Sustainability Report ........................................................................................ 7-26 Annual Report....................................................................................................... 27-29 Group Operations ........................................................................................... 30-33 Financial Overview........................................................................................... 34-36 Income Statement ................................................................................................... 37 Balance Sheet..................................................................................................... 38-39 Cash Flow Statement ............................................................................................ 40 Accounting Principles & Notes to the Financial Statements ...... 41-42 Notes......................................................................................................................... 43-51 Audit report............................................................................................................52-53 Board of Directors ....................................................................................................54 Management Team ................................................................................................ 55
WIBAX • 3
WIBAX IN BRIEF
EST.
1986
Wibax is a wholly owned family business.
OUR BRANCHES
TURNOVER 2018
1,174 MSEK TANKER TRUCKS
1 week
Piteå
Skellefteå Pietarsaari Örnsköldsvik FINLAND
Härnösand
NORGE
Vaasa Sundsvall
SVERIGE
Tampere Rauma Kotka
Gävle
Herre
OWN SUPPLY CHAIN
Stockholm
Uddevalla
Wibax Is Sweden’s only chemical supplier with its own tanker fleet.
Norrköping
Kungälv
> 350,000 m3
Viborg DANMARK
Wibax’s total storage capacity in cistern parks.
Malmö Veijle
21% women 79% men
184
TERMINALS
> 198,000 tonnes
Average number of permanent employees in 2018.
OFFICES
> 1,100,000 tonnes
The fossil CO2 reduction attained by Wibax customers in 2018 when switching from fossil fuel heating to bio-oil.
The total volume of chemicals and bio-oils handled each year.
FOR CONSTANT IMPROVEMENT ISO 9001 ISO 14001
+
=
40% The share of renewable fuel that powered our trucks in 2018.
STATEMENT BY THE CEO 2018 was one of the best years in Wibax history and marks also the year when the company finally reached its long outstanding goal of achieving one billion Swedish crown sales turn over. We reached the billion mark as early as November 2018 and we even closed the year above the 5% profitability target we had. Last year was indeed a milestone for all of us in Wibax. I am extremely proud of all our competent employees who have worked hard for many years in the company to achieve this. Last year’s result provides us with a solid foundation that will enable us to continue major strategic investments in the future. Current market demand for Wibax products is good. This goes for the volume generating key products in our portfolio but primarily the company’s own produced products which has significant increase in sales turn-over last year. In order to meet the challenges that are involve with the increasing demand of our products, the company have invested more in our own production facilities, with the aim to increase production volume as well as to further improve existing high level of quality in our production. Our own logistic company, Wibax Logistics plays also a significant role in Wibax success in the market by distributing our products effectively, both cost-wise and with less environmental impact. The demand for biooils, as well as the service solutions Wibax offers side by side with the sale of the products such as conversion and planning, are significantly growing each year. Together, this part of our business constituted the biggest turn over increase in 2018. High demand for bio oil conversion extends planning well into 2019. We are also investing in more terminals and bigger storage capacity in order to deliver even better service to our customers. As we have exceeded already our target of one billion Swedish crown, we are setting new goals and challenges ahead of us, where growth is the primary driving force. Our company focuses on growth and development, as to phase-out is never an option for us.
Jonas Wiklund
WIBAX • 5
6 • WIBAX
SUSTAINABILITY REPORT
WIBAX • 7
PRODUCTS
PRODUCTION
SERVICING/MAINTENANCE
L
CUSTOMER STORAGE/LOGISTICS DEVELOPMENT/KNOWLEDGE
SUSTAINABILITY
Control of the entire supply chain from producer to end user – centred on the customer! WIBAX’s winning strategy is to retain control of the entire supply chain, from producer to end user; from maritime and inland transport as well as tanker terminals to production, sales and customer care. In partnership with our customers, we constantly develop new solutions, striving to streamline customer processes, improve the overall finances and ensure we have the smallest possible environmental impact.
8 • WIBAX
OUR VIEW OF SUSTAINABILITY
We feel that sustainable entrepreneurship involves constantly working towards satisfying the needs of owners, employees, customers and stakeholders, without compromising the ability of future generations to do the same. In addition, sustainability is about constantly striving to create a healthy and thriving organisation and to economise on resources in order to yield maximum return in the long-term. The company’s keywords; enterprise, participation, quality and customer focus remain firmly rooted in our values and are described as Good Chemistry. Wibax strives to ensure that everything we do is steeped in Good Chemistry, for the company as well as for the world. Sustainability is generally divided into three aspects; economic, social and environmental sustainability.
OUR SUSTAINABILITY PROCESS Wibax works with the management team, using objectives to ensure constant development and continuous improvement efforts on all levels within our operations. Our management by objectives is based on internal as well as external analyses to ensure that we do not spend time or resources on activities or areas that do not create value for the stakeholder or our own organisation. To us, sustainability is not a separate activity, but something that imbues every aspect of our business, and all focus areas can be classified in accordance with the three sustainability aspects below. In addition, all our focus areas and sustainability efforts are derived from the 2030 Agenda and the 8 goals where we actively contribute to more sustainable development, and this report aims to describe our contribution to the 2030 Agenda and our work towards Good Chemistry, from governance to practical implementation.
L SUSTAINABIL CIA ITY SO
EN V I R ON ME
ECONOMIC SUSTAINABILITY involves economic development that does not jeopardise environmental or social sustainability.
ECONOMIC S US TA
SOCIAL SUSTAINABILITY involves striving towards a world where fundamental human rights are fulfilled, and ensuring that that we do not satisfy our needs at the expense of someone else’s rights.
TAINABILITY SUS L A NT
ENVIRONMENTAL SUSTAINABILITY involves economising on natural resources and having a long-term environmental approach.
Y ILIT AB IN
Sustainability is an important aspect for Wibax and for us, it involves constantly promoting sustainable development, optimum use of resources and having less environmental impact as possible.
The UN has drawn up an agenda for a sustainable society - the 2030 Agenda for Sustainable Development. The Agenda means that all 193 UN member states have undertaken to work towards a socially, environmentally and economically sustainable world by 2030. The Agenda contains 17 goals that aim to eradicate poverty and hunger, implement human rights for all, achieve equality and empowerment for all women and girls, as well as to ensure lasting protection for the planet and its natural resources.
WIBAX • 9
SUSTAINABILITY PROCESS BUSINESS INTELLIGENCE AND RISK MANAGEMENT Business intelligence aims to gather and analyse events around the world which relate to the company and decide how to handle them. Wibax conducts annual SWOT analyses to identify strengths, opportunities, weaknesses and threats relating to the company. Based on these analyses, a number of risks have been identified that are essential to our business. All risks have been included in our management by objectives plan, which ensures that we continuously work with the identified risks.
S
W
O
T
Below, we list the principal risks to our business that we have identified for 2018.
STRATEGIC RISKS
RISK MANAGEMENT
RISKS CONCERNING ENVIRONMENTAL PERMITS Wibax operates under licence in accordance with the Environmental Code on all our sites. Insufficient permits and long turnaround times impact storing and management flexibility. Any breach of applicable environmental laws may lead to criminal charges and enforcement actions.
Compliance with environmental requirements is of great importance to Wibax’s operations. Without environmental permits, our current operations would cease. Wibax is trying to work predictively with a long-term horizon to ensure that the permits correspond to the needs of our operations, in terms of both scope and flexibility.
CUSTOMER DEPENDENCY Strong economic fluctuations may increase the risk of a reduction in sales volume.
Through close and lasting customer relations, technical partnerships, a flexible product portfolio, as well as a comprehensive logistics system, Wibax is better equipped for any cyclical fluctuations. In addition, Wibax strives to offer customers high quality in terms of products and reliability of supply, with the aim of strengthening our competitiveness.
POLITICAL RISK The introduction of a kilometre charge on heavy vehicles would have considerable impact on our business.
Our terminals are strategically located near our customers in order to reduce the need for road transport.
Changes to tax legislation concerning sustainable choices may impact both the financial viability of running the vehicles on renewables, and the opportunities for selling bio-oils.
Wibax has an active business intelligence section for managing political risk and collaborates with both national and international trade associations in order to manage this risk.
Business risk may arise as a consequence of political decisions or changes to the legislation and regulations that apply in countries with which Wibax conducts business.
RISKS CONCERNING THE PROCUREMENT VALUE CHAIN There is a risk that we trade with suppliers that do not comply with the requirements we have on our suppliers, as the current system of control and auditing is insufficient. 10 • WIBAX
In 2019, our auditing methods will be developed further.
OPERATIONAL RISK
RISK MANAGEMENT
RISK OF ACCIDENTS AND ILL HEALTH Wibax’s employees and contractors are sometimes subjected to hazardous situations that may involve risks of accidents and/or ill health.
Wibax is working actively with health and safety, and there are clear procedures in place for when risk assessments must be conducted and how. All employees receive training on the products, material and equipment relevant to their work, which reduces the risk of accidents.
RISK OF ENVIRONMENTAL IMPACT DUE TO CHEMICAL DISCHARGE Accidental discharge into the air and water may have a negative impact on the local land and environment, and thereby on the public trust in Wibax and consequently our opportunity to continue operations.
With well-trained drivers and relevant equipment, the risk of traffic accidents and subsequent potential discharge of chemicals is reduced. To prevent discharges at depots, most of the cistern parks today have bunding, and plans are in place for installing bunding at more terminals. Terminals where particularly hazardous chemicals are stored take priority. The terminals are continuously risk assessed and any identified potential discharge points are rectified.
RISK OF INSUFFICIENT SKILL SUPPLY Being able to retain existing employees and attract new talent with the right skill sets is an essential component of Wibax’s continued development.
Wibax’s goal is to be the most attractive employer in the industry. Wibax has partnered with a process operator programme and takes in interns in order to build a relationship with them.
RISK OF SUPPLY CHAIN FAILURES Supply chain failures could affect our ability to supply our customers with the promised product, which may impact us financially and hurt our brand.
We work with several suppliers of the same product in order to ensure no supply shortages.
RISK OF RENEWABLE FUEL SHORTAGES Wibax’s goal is to run the tanker transports on a minimum of 50% renewable fuel, and a lack of availability would risk us having to use more fossil fuel than we would like.
Wibax analyses business intelligence concerning fuel supply options, as well as technical developments, in order to find other alternatives for reducing our carbon footprint.
WIBAX • 11
STAKEHOLDER DIALOGUE Stakeholders are individuals or groups that are affected by or interested in our operations, and it is thanks to them that we exist at all. A stakeholder dialogue involves having a continuous dialogue with customers, employees, licensing authorities and other stakeholders, in order to subsequently map the requirements for and expectations on our business.
CUSTOMERS AUTHORITIES
OWNERS
SOCIETY
EMPLOYEES
12 • WIBAX
SUPPLIERS
The stakeholder dialogue is mainly conducted through regular customer interviews, daily meetings at delivery of chemicals, supplier evaluations and continuous contact with other stakeholders.
MATERIALITY ANALYSIS The self assessment was then conducted in order to identify the areas that we think we have the greatest ability to affect, and this was then compiled together with the information from the customer survey.
The customer survey involved our customers grading different sustainability parameters from 1-9, where 9 represents the parameter that they consider the most important for continuing using Wibax as their supplier.
The result is presented in the figure below, where we have chosen to prioritise the circled sustainability aspects, based on the result of the materiality analysis, but also on the risks identified in our risk assessment:
Importance to the stakeholder
In order to identify the sustainability parameters that we are able to, and should, focus on, we have conducted a materiality analysis that consists of a customer survey and a self assessment.
9 8,8 8,6 8,4 8,2 8 7,8 7,6 4 5 6 7 8 9 10 WHAT WIBAX CAN AFFECT Use of natural resources
Minimising inland transports
Safe chemical handling
Reducing waste
Equality & diversity
Sales of bio-oil
Minimising water utilisation
Healthy employees
Secure transport
Reducing marine pollution
Work on energy efficiency
Sustainable solutions & transports
CERTIFICATES AND REVIEWS Both Wibax AB and Wibax Logistics AB are certified in accordance with the ISO 9001 quality management system as well as the ISO 14001 environmental management system. In addition to the fact that these management systems help Wibax organise, streamline and quality assure its operations, while maintaining a clear focus on the environment, they are also a way to respond to demands from customers and suppliers. The Swedish Energy Agency has previously awarded Wibax Biofuels AB and Wibax Logistics AB with a sustainability decision.
Review of a Swedish sustainability decision is conducted continuously at the request of the Energy Agency, or when the occasion arises as a consequence of a report about a major deviation or about material changes. In the spring of 2018, a review of the sustainability decision was conducted by having an independent reviewer auditing the control system. Upon assessment, the Energy Authority found that the control system was adequate and that it continues to be valid.
WIBAX • 13
FOCUS AREAS Based on the risks and the prioritised sustainability aspects that we have identified, as well as the requirements from authorities and certificates that we must comply with, Wibax has formulated focus areas within the different sustainability aspects as follows;
SUSTAINABILITY ASPECTS ECONOMIC SUSTAINABILITY
FOCUS AREAS
In order to reach the growth target and be a competitive alternative on the market, we need to develop our product portfolio as well as being a cost-effective group. Another part of our efforts to promote economic sustainability is to continuously work on value-creating customer solutions in which we analyse the customer’s needs and adapt our operations accordingly, through flexible development of the product portfolio and adaptation of our logistics systems.
SOCIAL SUSTAINABILITY
Wibax strives to be an attractive employer and provide a safe workplace for our employees. By working actively with sustainability we contribute to a better society and become a more attractive supplier and employer. Sustainable business is an important aspect and by controlling the entire supply chain, we ensure quality and reliability of supply without compromising human rights. It is about ensuring that Wibax’s business is ethically correct and does not have a negative impact on the world around us, as well as about safeguarding our employees and society in terms of well-being and equal treatment.
ENVIRONMENTAL SUSTAINABILITY
Wibax will continuously actively promote environmental efforts, based on our environmental policy. Everything we do shall be imbued with Good Chemistry and we will continue to reduce our carbon footprint. This sustainability aspect constitutes a major part of our sustainability efforts, as we both have a product portfolio that greatly enables our customers to reduce their fossil emissions, but also as we have a logistics system that can affect our own emissions in various ways.
CONTRIBUTES TO SUSTAINABILITY GOAL:
We are working on a number of activities within each aspect and focus area, and this report aims to present our sustainability efforts and the results thereof over the past year.
WIBAX • 15
In 2018 40% of our fleet of trucks ran on renewable fuel.
ENVIRONMENTAL SUSTAINABILITY = ECONOMIC SUSTAINABILITY Earth’s resources are finite and all life on earth depends on chemical processes. As stakeholders in the chemical industry, our ambition is to minimise our impact on the environment and the climate, as well as to optimise resource utilisation. For us, economic sustainability means constant flexibility vis-a-vis customer needs and rapid adaptation in a constantly changing world. Wibax focuses on valuecreating customer solutions based on customer needs, and a subsequent adaptation of our operations by developing our product portfolio and logistics system. Environmental sustainability constitutes a considerable part of our business concept, where we provide customers with environmentally better alternatives with the aim of reducing their carbon footprint. This is achieved through process optimisations, smart logistics solutions and environmentally friendly products with everything from conversion of combustion plants, from fossil oil to bio-oil, to the sale of bio-oil for combustion. At the same time, we are able to offer eco-efficient transport solutions for both storing and distributing chemicals and oils to customers. For that reason, our economic sustainability also involves environmental sustainability, for our own business as well as for society in general. 16 • WIBAX
EFFECTIVE LOGISTICS FLOWS WITH A LOW ENVIRONMENTAL IMPACT Wibax currently has 8 strategically located port terminals around Sweden, as well as one in Jakobstad in Finland, where we store our products. The aim is to be located in close proximity to our customers in order to reduce inland transports and thus our environmental impact. We do this by creating effective logistics flows through good planning, combinations of different modes of transport, storage and return flows. Wibax’s transports will be carried out at the highest level of quality possible, with as low an environmental impact as possible. To reduce our carbon footprint and minimise our energy application, we focus on effective resource utilisation. By that, we mean that we continuously analyse and evaluate our resources such as employees, fuel, vehicles and technical equipment to ensure the greatest possible environmental benefit, and we are working comprehensively to minimise our CO2 emissions per transported tonne. Over the past two years, a major part of this has been to run our fleet of vehicles on as large a share of renewable fuel as possible. However, in mid-2018 the Carbon Emissions Reduction Obligation entered into force, which means that fuel
companies, by law, must live up to a certain quota of renewable fuel. This entails less availability of renewable fuel for the individual business and therefore, it impacts our bottom line in a way that we unfortunately have not been able to influence. The target for this in 2018 was 50%, but because of the Carbon Emissions Reduction Obligation we only achieved 40%. Wibax will continue to look for renewable alternatives to fossil fuel and in 2018, Klimatklivet (The Climate Leap) gave us a grant for investing in a number of vehicles powered by biogas.
Wibax’s transports will have the highest level of quality possible with as low an environmental impact as possible.
We are also actively working to implement rail transport in our logistics portfolio and we are already providing a large number of container transports by rail.
SOUND AND RESPONSIBLE TRANSPORT
50
10
45
9
40
8
35
7
30
6
25
5
20
4
15
3
10
2
5
1
0
0 2014
2015
2016
2017
Carbon dioxide per transported tonne (kg)
Share of renewables, %
Unfortunately, the transport sector operates in an unsound competitive situation with price dumping on an over-crowded market, which is why we have chosen to support a safe, clean and responsible haulage industry by being part of Fair Transport. This means that we drive safely, consider the climate and provide good working conditions. We also have new tyres and alcohol interlock devices on our vehicles, we comply with driving and resting regulations and continuously train our drivers on safety and the environment.
2018
Share of renewable fuel in our transports Fossil carbon dioxide (kg) per transported tonne
WIBAX • 17
FAIR TRANSPORT The Swedish Association for Road Transport Companies is the industry’s trade association and they promote sound and profitable development of the haulage industry. The organisation pursues matters of transport policy as well as social and political matters that concern haulage companies with the aim of strengthening the Swedish haulage industry’s competitiveness and improving conditions for the operation of haulage companies.
FUEL EFFICIENT TRANSPORTS In addition to using renewable fuel and promoting responsible hauling, in 2018 we also worked actively on reducing our fuel consumption by; • TRAINING our drivers in how to drive their vehicles as resource efficiently as possible. This is done through a support system that measures the drivers’ driving style and provides recommendations on how to improve it. • OPTIMISING the fill rate of the truck fleet is conducted by continuously analysing flows and planning return transports, as well as by maximising laden weight. A high laden weight results in lower CO2 emissions per transported tonne, as it entails fewer trips and thus enhances public benefits. The previous laden weight on the public road network has been increased from 60 to 64 tonnes. For that reason, in 2018 we started to rearrange our fleet of vehicles in order to increase the laden weight.
In 2019, we increased our fleet with an additional 4 vehicles with a load capacity of 74 tonnes.
In addition, since 2016 we have used one vehicle under an exemption that has a capacity of 74 tonnes with very positive results. In 2018, the Swedish Transport Administration decided to increase the available road network for 74-tonne vehicles and Wibax consequently decided to invest in an additional four vehicles of this class. • USING our tyres optimally, making them last longer but also enabling them to roll more easily. Our tyre policy provides guidelines for changing tyres, retreading, regrooving and controlling air pressure. Regrooved tyres enable an average of 25% more kilometres and entail a little over 25% lower rolling resistance, which results in lower fuel consumption and therefore lower emissions.
Our focus on eco-friendly transports, in combination with Wibax’s overall sustainability efforts, made us one of the finalists in the transport companies’ sustainability award in 2018!
18 • WIBAX
FOSSIL-FREE HEATING FOR CISTERN STORING
All terminal depots in Sweden are powered by fossil-free energy.
Wibax stocks a number of different products, some of which for various reasons require a certain temperature. In a survey in 2017, it turned out that this heating of products represents a little over a third of the Wibax group’s energy consumption. The cisterns used for products that require an elevated temperature are insulated to minimise heat loss, but in order to further reduce our climate impact we have also reviewed our choice of energy source. Previously, the products were kept at an elevated temperature using fossil oil, but Wibax have worked over the past three years to convert plants to renewable alternatives. In 2017, two facilities were converted, one in the Port of Skellefteå and one in Norrköping, and in 2018 they were followed by a plant in Uddevalla. This means that all terminal depots in Sweden use fossil-free energy and in addition to the fact that the group stores the company’s own chemicals, we also lease storage capacity. We are therefore able to offer customers fossilfree heating for cistern storage at several locations.
FOSSIL-FREE HEATING OF CUSTOMERS’ FACILITIES Wibax Biofuels is a subsidiary that is tasked with selling bio-oil for combustion, which gives customers CO2-neutral emissions.
eco-friendly transports. The fact that we own the entire logistics chain also makes us unique within the industry.
Part of the sales efforts involve motivating customers, who currently heat their plants using heating oil, to convert their plants. Wibax Industrial has the expertise for planning and implementing the conversions. This enables the customer to choose the same partner for conversion, purchase of bio-oil and
In 2018, we helped convert 4 customer facilities and our project managers have helped customers with administrative matters by applying to “Klimatklivet” as well as through practical adaptation and reconstruction. Using new, more modern equipment and fuelefficient burners has reduced op-
erating costs and increased production capacity, leading a more eco-friendly process. In terms of the sales of bio-oil over the past year, we have contributed to our customers reducing their fossil CO2 emissions by 238,000 tonnes.1 1)
The reduction in carbon dioxide is calculated based on the fossil carbon content of the fuels, with the difference if the fuel had been 100% fossil fuel.
We have contributed to our customers being able to reduce their CO2 emissions by around 238,000 tonnes. WIBAX • 19
20 • WIBAX
FOSSIL-FREE ENERGY SUPPLY In addition to fossil-free heating of cistern parks and the conversion and sale of fossil-free alternatives, we are also working with Good Chemistry in mind, to use as large a share as possible of renewable energy throughout our operations. This is a work in progress, which we are constantly developing and improving.
DISTRIBUTION OF TOTAL ENERGY CONSUMPTION FOR THE WIBAX GROUP (SWEDEN)
In 2018, we converted to green electricity at our facilities in Skutskär, Malmö and Härnösand, and also signed an agreement with our local energy supplier about switching to green electricity from 2019 at our offices in Piteå, the Port of Skellefteå, Örnsköldsvik, Norrköping and Uddevalla.
39%
Green energy
61%
Other energy
DUST BINDING In the mining industry, but also in many other industry segments, dust is a major problem, affecting both health & safety and security. The traditional method to control dust is to use water. The problem is that the effect is fairly short-term, once the water has dried up you are back where you started. Using dust-binding agents enables better and longer lasting effects.
There are several adverse effects from dust that can be avoided or minimised with the correct treatment: HEALTH & SAFETY
EXTERIOR ENVIRONMENT
FINANCES
• Better air quality reduces the risk of respiratory problems and irritation to the eyes and nose.
• Reduced risk of dust spreading to the plant’s surroundings.
• Reduced wear and tear on equipment means longer life, reduced maintenance and fewer unplanned stoppages.
• Better health & safety due to better visibility, which reduces the risk of accidents.
• Reduced levels of particulates in the air in order to be able to comply with ever stricter limit values.
• Minimised loss of valuable material through reduced dusting.
• Reduced risk of dust-induced explosions.
WATER TREATMENT Wibax is able to provide a comprehensive product programme for water and process management within the industry. Wibax works proactively to comply with future stricter limits on emissions, and through close collaboration with our customers we are working to optimise management from a cost and environmental perspective to promote sustainable development. Having well-functioning water and process management makes it possible to minimise the use of water, energy and chemicals, and to contribute to a sustainable society. Wibax also has specific solutions for steel, mining and petrochemical industries where these issues arise as well.
WIBAX • 21
SOCIAL SUSTAINABILITY Wibax’s social sustainability efforts focus on always striving to bring about an equal and fair society based on the equal value of all individuals, in situations of minor as well as major significance. Wibax works actively to ensure that the suppliers whose services we use comply with laws, conventions and good business practices. We also focus our attention on local communities and how we can contribute to making society better for the people in our immediate surroundings. Furthermore, our employees play a central role in Wibax's sustainability efforts, as healthy, committed and motivated staff are what makes the company successful. Our aim is for Wibax to be an attractive employer where employees feel involved, appreciated, motivated and secure, as well as a partner that represents good quality at all levels.
SUSTAINABLE PURCHASING As a distributor, efficient purchasing with good longterm supplier relationships is of the utmost importance. We have a large network of purchasing channels and we purchase from global producers. Wibax has around one hundred suppliers located in more than 10 different countries, with the majority of these suppliers being located in the European Union. Purchases include raw materials, chemicals for distribution, transportation, storage and other goods and services. In order to be a potential supplier of Wibax, the supplier must comply with our Code of Conduct. Wibax CoC is based on the ten principles of the United Nations Global Compact, which focuses on areas such as human rights, labour law, the environment, business ethics and anti-corruption. We expect that all suppliers that Wibax engages follow this Code of Conduct and support these 10 principles. Furthermore, these
99%
of our customers felt that Wibax had fulfilled or exceeded their expectations as a supplier.
22 • WIBAX
requirements shall also apply to subcontractors who fall under the scope of our suppliers’ influence. Wibax's policy is that no one may receive or offer customers, potential customers, authorities or other business partners any form of compensation or reward that is in violation of laws and good business practice. Our Code of Conduct is available to all our employees and is also included in the induction programme for new employees. Before an agreement is signed with a new supplier, an assessment of the supplier is carried out based on a declaration of intent, which is repeated at least every two years for existing suppliers, and for major suppliers, site visits are also performed. In 2018, 15 supplier assessments were carried out, which together with last year's 65 assessments means that we have assessed 87.5% of our suppliers during the period stipulated. The plan for 2018 was to develop the assessments to include an audit component, which means that each supplier over a two-year period must undergo a supplier assessment and the suppliers who have a significant impact on Wibax's quality shall be followed up at a later stage by an audit to ensure compliance with the stated requirements in the assessment and the Code of Conduct. In 2018, an audit structure and an audit schedule were established and the first audits were conducted to test the structure. The suppliers were approved and we will continue to develop the audit plan in 2019 to optimise the process.
CUSTOMER SATISFACTION At Wibax, customers are our main focus and customer satisfaction is therefore central to our organisation. We believe that it is important to be responsive and flexible to the needs of our customers and therefore we engage in frequent dialogue with our customers to ascertain specific requirements and needs in order to be able to meet the expectations of our customers. With this in mind, our strategic goal is that 98% of customers when asked should consider that they have received what they expected or more from Wibax as a supplier. The measuring tool for follow-up is frequent customer surveys in the form of phone interviews where the customer can grade Wibax on various issues. However, we experienced some shortcomings in the customer survey that was previously used and have therefore redesigned the survey in 2018. With the new version of the customer survey, we performed 70 surveys, and in 2018 the result was 99%, which means that we reached our goal.
WIBAX AND SOCIETY
SPONSORSHIP Wibax strives to be a positive force in society and is happy to support local activities in our main town of Piteå. This includes associations, sport, culture or education and research within our area of interest. Our target groups are young people, decision makers in society and customers. The sponsorship should be gender neutral, support Wibax's ethical and moral values, take environmental aspects into consideration and must not violate or discriminate against individuals or ethnic groups. In 2018, Wibax has, among other things, sponsored Wibax Piteå IBK, Piteå Elit, Barncancerfonden and the women's football team Piteå IF.
STUDENTS In 2018, Wibax offered traineeships to process operators, drivers, economists and purchasing officers. We participated in the LARV exhibition at Luleå University of Technology, which is a platform for contact between students and businesses. We also participated in the homecoming meeting “P.S. Saknar Dig” in Stockholm and the Load-Up North exhibition in Boden in order to showcase who we are as a company and attract future employees. In 2018, Wibax also visited
secondary-school classes to talk about Wibax and to give pupils the opportunity to ask questions about Wibax as an employer. We have had a student from the university who completed their dissertation, as well as three classes on field visits, one from a primary school and two from vocational schools. During the summer, there were about 30 temporary employees who helped within the Group. WIBAX • 23
EMPLOYEES
ATTRACTIVE EMPLOYER WIBAX values are based on the work force we need to develop a shared, robust and long-term culture that supports the business as well as motivates our employees. Wibax wants to be a workplace where everyone feels a sense of solidarity, appreciation and pride, and where every employee is part of a team that works towards a common goal. Every employee must have an equal set of conditions, rights and opportunities for development, and Wibax must take advantage of all our employees' skills and thereby increase efficiency and productivity. A sustainable business is built by committed employees who act responsibly to live up to expectations and needs in the world around us, which is an important prerequisite for a business that is sustainable and value-creating. Wibax shall be an attractive employer and work actively with key activities within the Employee area to attract, retain, and develop our committed employees. The fact that Wibax complies with collective agreements that are applicable to the industry, and that the business is conducted in accordance with applicable legislation, provides security for our employees.
EMPLOYEE SURVEY In order to continue to develop and improve as an organisation and employer, our employees' views are very important to us. Every two years, we conduct an employee survey to ascertain our employees’ opinions in relation to team efficiency, leadership, commitment as well as the psychosocial and organisational working environment. The aim is to measure the company’s attractiveness and employee loyalty based on the question; “How likely is it that you would recommend Wibax as an employer to a friend?”
Ambassadors 46%
Passive 35%
Critics 19%
EMPLOYEE INDEX
Ambassadors
= Critics
NPS = 27 Net Promoter Score (Maximum: +100 Minimum: (-100) (Benchmark = 9)
POWERED BY PEOPLE Wibax is one of the top 10 in Powered by People! Powered by People is an award that Brilliant instituted in 2017 to reward companies that have worked hard on the results of their employee surveys. The award is based entirely on the results of the 2017 employee survey, which means that it is not subjective criteria that dictate who wins the prestigious award. Powered by People consists of three categories; Greatest Change Journey, Best Construction and Manufacturing Company and Best Service Company. Wibax was one of the top 10 best companies in the category ‘Best Construction and Manufacturing Company’.
24 • WIBAX
HEALTHCARE In order to promote good health and well-being in the workplace, we have an active healthcare programme where we offer both healthcare grants and carry out joint healthcare activities with a focus on a healthy lifestyle. In 2018, the healthcare year consisted of themed activities where employees had the opportunity to try out different types of exercise and activities; Health Bingo, Workout (lunch-time exercise classes), outdoor activities for the whole family and the WiStep company challenge. WiStep is a step competition that took place during the autumn as a company challenge, where Wibax competed against another company in Piteå. All employees were divided into teams and together they would amass steps in order to take their team via an interactive map from Piteå to Sydney, Australia. There was a high level of employee participation and involvement in the step competition (66%), and employees felt that it was a positive concept.
EMPLOYEES • Total number of permanent employees 184 • 23% of our employees are women
DRIVERS The graph shows the breakdown of male and female drivers at Wibax at locations where we have terminals.
2018
Women
Men
35 30 25 20 15 10 5 0 %
PITEÅ
SKELLEFTEÅ
Ö-VIK
HÄRNÖSAND SKUTSKÄR NORRKÖPING UDDEVALLA
Parental leave
46%
54%
The number of days parental leave taken out by both women and men has decreased over the past two years. The distribution of the total number of hours parental leave taken in 2018 was 54% for women and 46% for men.
44
years of age
Average age of employees
Women Men WIBAX • 25
EQUAL TREATMENT Wibax shall be free from discrimination, harassment or reprisals that are in any way associated with discrimination based on gender, transgender identity or expression, ethnicity, religion, disability, sexual orientation and age. The work must be conducted at all levels and our approach shall be characterised by equal treatment and diversity, as well as respect and dignity for the individual and their integrity. A review of discrimination risks has been carried out and is updated on a regular basis. An action plan is included as part of the Health and Safety Plan.
HEALTH AND SAFETY AND THE SAFETY CULTURE Wibax will continue to be a safe workplace, where we systematically work with health and safety issues. We regularly investigate, implement and monitor the business through risk assessments, health and safety inspections and health and safety committee meetings. We do this in order to prevent ill health and accidents at work, thereby bringing about a satisfactory working environment for all employees. Through training, all employees gain knowledge of the products, materials and equipment that are relevant to the work of each employee.
LTIF (LOST TIME INJURY FREQUENCY) In 2018, 19 accidents occurred at Wibax, two of which resulted in sick leave. The goal is to reduce the number of accidents in 2019 compared with 2018 and not to have any sick leave whatsoever as a result of workplace accidents.
The LTIF is based on the ratio between the number of accidents leading to at least one day of absence and the total working hours during the financial period. The ratio is calculated in relation to one million working hours.
THE LTI TREND OVER THE PAST 4 YEARS 12
Accidents LTIF value
10 8 6 4 2 0
26 • WIBAX
2015
2016
2017 2018
Accidents 1
1
3
LTIF values 5,7
6,1
10,3
2 6,6
ANNUAL REPORT
WIBAX AB 556262-9674
The Board of Directors and Chief Executive Officer hereby present the annual report and the consolidated annual report for the financial year 01 January 2018 to 31 December 2018.
ADMINISTRATION REPORT WIBAX GROUP
WIBAX
WIBAX
WIBAX
WIBAX
WIBAX
WIBAX
WIBAX
LOGISTICS
INDUSTRIAL
BIOFUELS
PERFORMANCE CHEMICALS
WIBAX OY
WIBAX AS
WIBAX APS
NATURE AND PURPOSE OF THE BUSINESS The Wibax Group's core business is the sale, importation, production and distribution of biooils and chemicals with a particular focus on liquid products in bulk. The Group will continue to strengthen its market position within existing operations.
has experienced and competent staff. The company is one of the most comprehensive tanker transport companies in Sweden with the capacity to transport the most frequently used chemicals to the processing industry. Wibax Logistics AB is also responsible for the operation and maintenance of the Group's terminals.
OWNERSHIP INFORMATION
WIBAX INDUSTRIAL AB
The Wibax Group is wholly owned by Bo Wiklund, Jonas Wiklund, Andreas Wiklund and David Wiklund.
WIBAX AB The parent company was registered in 1986 and the head office is located in a company-owned property in PiteĂĽ. The premises contain offices, production facilities, warehouses, workshops and laundry facilities. The parent company is responsible for purchasing, production, storage, sales, administration, quality and the environment, as well as security and protection.
WIBAX LOGISTICS AB Wibax Logistics is a wholly owned subsidiary of Wibax AB, whose primary task is to fulfil the Group's needs for land transportation but also to carry out some external logistics assignments. The company vehicles are of a very high standard and quality, and the company 28 • WIBAX
Wibax Industrial is a wholly owned subsidiary of Wibax AB and complements Wibax's other operations. The main function of the company is to add value to the Group's sales through complete solutions in service and maintenance, as well as repairs and cleaning. The company carries out service and maintenance contracts in a number of areas in industrial environments. The company also provides a complete solution for converting boilers from fossil fuels to biofuels and helps with the design, installation, commissioning, optimisation and evaluation. In addition, the company is a mechanical and technical partner to Wibax's production and terminals.
WIBAX PERFORMANCE CHEMICALS AB Wibax Performance Chemicals AB is a wholly owned subsidiary of Wibax AB. The company offers a broad range of speciality and performance chemicals and is also responsible for development and market sup-
port for the entire Group. They are the spearhead of the Group and provide support for new commercial products and technology. The development of new applications is a priority area that enables strong expansion for the Group. The company also supports customers with the implementation of products, and equipment for the optimisation of their processes. We offer our customers a wide range of speciality and performance chemicals.
WIBAX OY
Our focus is on products within industrial water and process treatment, primarily in corrosion, deposits and microbiological control, as well as proprietary products in the field of defoaming and chemical cleaning.
Wibax AS is a wholly owned subsidiary of Wibax AB. The company focuses on products within industrial water and process treatment, primarily in corrosion, deposits and microbiological control.
WIBAX BIOFUELS AB
WIBAX APS
Wibax Biofuels AB is a wholly owned subsidiary of Wibax AB, which supplies bio-oils mainly for combustion, as well as technical expertise for implementation and optimisation.
Wibax OY is a wholly owned subsidiary of Wibax AB and is a sales company that mainly works with products for the pulp and paper industry, the mining and metal industry, as well as with products for water treatment and road maintenance in Finland.
WIBAX AS
Wibax ApS is a wholly owned subsidiary of Wibax AB. The company focuses on products within industrial water and process treatment, primarily with regard to corrosion, sedimentation and microbiological control.
WIBAX • 29
30 • WIBAX
THE GROUP'S OPERATIONS In 2018, the Group continued to develop and we had already passed our sales target of reaching SEK one billion in turnover in November. We have noticed significant economies of scale through our growth, which has contributed to a positive result and cash flow trend. Above all, it is our bulk products that are growing, within the chemical and biofuel sectors. We have further strengthened our vertical integration through investments in both production, terminals and vehicles, but also through increased knowledge and experience. Thanks to rapid market development, we have filled the vacant space in the head office and have therefore begun an investigation into expansion. Our intention is to increase the number of offices to accommodate more new employees, but also to improve the laboratory and canteens, for example. With the planned expansion, we hope to be able to manage the next 5-10 years. We have greatly increased our proprietary products in 2018, where we have seen a large increase in demand for our sulphates. Investments have been made to increase volumes and strengthen our already high level of quality and reliability of supply. The bio-oil business area of the Group continues to experience strong growth, which is exciting and fully in line with our other operations. During the year, volumes have increased across all products and we have experienced strong growth sales. We are also continuing to develop in the technical field to convert our customers from using fossil fuel oils to our biological alternatives. We currently have considerable demand for our services, so the future looks positive.
MARKET The market for commodity chemicals in 2018 was characterised by a high level of customer demand. Many of them in our largest segment, paper and pulp, have made major investments over the past few years to increase production volume. We are seeing this beginning to affect our order intake. A gratifying trend is that we are increasing the number of strategic partnerships, largely thanks to Wibax’s terminals, which today cover all of Sweden. Wibax has traditionally been strong along the north-east coast, but now we are establishing contact with customers all over Sweden and will continue to grow our business in southern Sweden.
ANTICIPATED FUTURE PERFORMANCE The market for our products remains good and our bio-oils and proprietary chemicals are in particular demand. We believe in further development, and are preparing for expansion by increasing our production capacity and investing in our terminals. We have a situation where we have limited number of office spaces and last year we started work to extend the head office.
QUALITY, SAFETY & THE ENVIRONMENT
During the year, the terminal in Uddevalla was completed for an external tenant who began to use the cistern during the summer. Otherwise, we invested in a number of vehicles during the year, but also in a number of smaller projects connected to our other terminals.
Issues related to licences and communication with authorities have been an important and significant part of the work for several of Wibax’s terminals in 2018, just as in previous years. In the spring, negotiations were held for an increase in production in Piteå, and the new licence was granted in April. The company has carried out upgrade audits for ISO 9001 and ISO 14001, and our department has performed internal audits in accordance with an updated process. Wibax continues to work actively with safety issues and during the autumn, risk inventories were initiated at all unloading bays at customer sites to ensure the safety of our drivers. Our Safety Manager continues to train our customers in the safe handling of chemicals and has also held refresher courses for our drivers.
PRODUCTION
OPERATING LICENCE
In the past year, we have continued to invest in our production of proprietary products in order to further increase production capacity and improve the health and safety, mainly for the production of sulphate-based and packaged products. We have also carried out a reorganisation that included a new production manager, a production engineer and a senior operator for each shift. With these measures, we will be able to satisfy increased demand for our proprietary products.
Wibax’s business operations involve the production and storage of chemicals that are under licence. The production unit in Piteå is an A-facility and is licenced for the manufacture and storage of chemicals. Our terminals in Skellefteå, Örnsköldsvik, Härnösand, Skutskär, Norrköping, Uddevalla and Malmö are B-facilities where we are licenced to handle and store chemicals. Our terminals at Haraholmen in Piteå is a C-facility where operations are conducted under an obligation of notification. Four of the facilities are
INVESTMENTS
WIBAX • 31
Seveso businesses where we currently provide storage in accordance with Seveso’s lower requirement level in three of the facilities. In the Port of Skellefteå, we are licenced for Seveso’s higher requirement level. Our licences are of the utmost importance for enabling us to conduct our type of business.
PERFORMANCE CHEMICALS Wibax Performance Chemicals is responsible for the sale of speciality chemicals as well as product development and market support for the entire Group. The company is a distributor of speciality chemicals in Sweden, Norway and Denmark and offers a wide range of speciality and performance chemicals. Sales have increased, particularly for water treatment products, cleaning chemicals, dust binders and defoamers. These product areas are of interest to the market and we anticipate continued growth. The fastest growth rate in 2018 has been for defoamers and boiler water treatment chemicals. Wibax's proprietary defoamer for pulp production meets the requirements of BfR, FDA and the Chinese standard GB9685, and is a completely unclassified product. Our focus is still on products within industrial water treatment and process treatment, as well as in defoaming and cleaning. We continue to develop new commercial proprietary products and see growing interest in most of these, such as in reducing deposit problems in process systems.
BIOFUELS Wibax Biofuels has continued to grow during the year and its profitability has also improved. In addition, March 2018 was a cold month, which contributed to increased sales. We have also increased our share of sales of bio-oils to industries that use the products throughout the year. We see continued demand for replacing fossil oils with bio-oils, primarily in the industrial and transport sectors. These sectors are increasingly talking about the importance of being green and reducing their own climate impact. We have also
32 • WIBAX
noticed an increased environmental awareness generally and an interest in what people can do to protect our environment. During the year, Wibax Industrial helped many customers convert their plants from fossil oil to bio-oil.
WIBAX INDUSTRIAL AB Wibax Industrial provides complete solutions within service and maintenance, repairs and cleaning. We also provide a turnkey solution where we convert boilers from fossil fuel to biofuel. We assist with design, installation, commissioning, optimisation and evaluation. Over the course of the past year, we have carried out a number of major conversion projects, as well as doing installation work and mechanical maintenance around the country. The conversion projects constitute a focus area for us and we see a continued need for the industrial and district heating sector to replace fossil oils with bio-oils. There is a great deal of interest and increased environmental awareness in the industry concerning reducing their climate footprint. We have adapted the organisation and now have a project team focusing on bio-oil conversions. In doing so, we hope to meet the needs of the market and work to bring about a more sustainable future.
WIBAX OY Wibax OY works mainly with the pulp and paper industry, other focus areas are the mining and metal industry as well as energy production and road maintenance. We work with deposit control and corrosion protection in the metal and chemical industry, where our services are highly valued. Our efforts to expand the business continue and during the year, preparations have been made to enable us to offer sustainable biofuels and thereby broaden our customer base. The upgrade of the Wibax terminal in Jakobstad means that in the future, we can better utilise the Group's expertise in storage, logistics and customer service, thereby achieving faster growth.
WIBAX LOGISTICS AB 2018 has been characterised by continued growth and development within the company. Of significance is our continued focus on the development of our terminals, with the aim of creating a foundation for the Group's continued growth. Investments in vehicles have proceeded according to plan and in accordance with our ambition to have a modern and effective vehicle fleet with high levels of efficiency and reliability, and with as low an environmental impact as possible. One prominent aspect of this work has been our investment in new tanker trucks in order to adapt our vehicle fleet to the new regulations for increased laden weight, a project that will continue in 2019. Up until the reduction obligation was introduced in the middle of the year, we have also been able to increase the proportion of fossil-free fuel. Our drivers, through their own efforts and new system support, have developed a more efficient and sustainable way of driving. During the year, the haulage business was reorganised, resulting in a division of the managerial roles for operations and support functions in order to achieve increased efficiency. During the year, we continued our work on container transport by rail. The work on implementing rail as
an alternative mode of transport for Wibax Logistics continues. Our position as one of Sweden's largest bulk suppliers has been further strengthened through continued investments in our terminals for storage of liquid products. The terminals are an important strategic initiative, fundamental for achieving the Group's goals. What stands out most is the work on the bunding and expansion of the capacity of the terminal in Uddevalla, which was completed at the end of the year. Other terminal projects that have been implemented are adaptations enabling us to receive new customers and take on maintenance work. During the year, the company was nominated as one of three finalists in the Swedish Confederation of Transport Enterprises’ Sustainability Prize. Our strength lies in our combination of transport and storage. This is a business model that we have developed over the years and which contributes to our strong position in the market. This makes Wibax Logistics a unique company in the industry with the range, expertise, flexibility and the strength to develop further.
WIBAX • 33
FINANCIAL OVERVIEW
THE WIBAX GROUP Operating income Operating profit/loss 90,000
1,400,000
1993-2018
80,000
1,200,000
70,000 1,000,000 60,000 800,000
50,000
600,000
40,000 30,000
400,000 20,000 200,000
10,000 0 2016
2017 2017
2018
2015
2016
2014
2015
2012
2013
2011
2010
2009
2008
2007
2006
2005 2006
2003
2004 2005
2002
2001
2000
1999
1997
1998
1996
1995
1994
1993
0 KSEK
Operating income Earnings before interest and tax (EBIT)
THE WIBAX GROUP Key ratios 45.0
1995-2018
40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0
Profit/loss after financial items Equity ratio Return on capital employed
34 • WIBAX
2018
2014
2013
2012
2011
2010
2009
2008
2007
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0.0 Percent %
KSEK
WIBAX AB Operating income Operating profit/loss 700,000
50,000
2000-2018
45,000
600,000
40,000
500,000
35,000 30,000
400,000
25,000 300,000
20,000 15,000
200,000
10,000 100,000
5,000 0 2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0 KSEK
KSEK
Operating income Earnings before interest and tax (EBIT)
WIBAX LOGISTICS AB Operating income – EBIT 20,000
300,000
2000-2018
18,000
250,000
16,000 14,000
200,000
12,000 10,000
150,000
8,000 100,000
6,000 4,000
50,000
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
KSEK
2000
2,000 0
0 KSEK
Operating income Earnings before interest and tax (EBIT)
WIBAX BIOFUELS Operating income – EBIT 500,000 450,000
20,000
2010-2018
18,000
400,000
16,000
350,000
14,000
300,000
12,000
250,000
10,000
200,000
8,000
150,000
6,000
100,000
4,000
50,000
2,000 2018
2017
2016
2015
2014
2013
2012
2011
KSEK
2010
0
Operating income Earnings before interest and tax (EBIT)
0 KSEK
WIBAX • 35
FINANCIAL OVERVIEW MULTI-YEAR COMPARISON, GROUP KSEK 2018 2017 2016 2015 2014 Operating income 1,174,643 847,234 769,963 709,427 628,548 EBIT 78,855 45,575 50,510 47,139 46,118 EBITDA 113,683 74,142 77,531 70,574 68,690 Profit/loss after financial items 72,657 39,121 44,681 39,256 41,295 Profit margin 6.5 4.9 6.1 5.7 6.8 Balance sheet total 748,638 677,711 534,064 469,879 430,474 Equity ratio, % 35.4 32.3 39.0 39.4 38.2 Return on capital employed, % 10.7 6.8 9.5 9.5 11.4 Average no. of employees 184 179 175 154 162
MULTI-YEAR COMPARISON, PARENT COMPANY KSEK Operating income EBIT EBITDA Profit/loss after financial items Profit margin Balance sheet total Equity ratio, % Return on capital employed, % Average no. of employees
2018 2017 2016 2015 2014 593,922 448,540 426,412 435,810 406,761 43,636 27,655 22,178 20,558 29,692 62,889 41,307 35,057 30,911 39,717 38,027 37,160 37,021 13,530 25,016 6.8 8.8 9.2 3.2 6.4 488,761 491,434 434,354 363,514 342,928 37.6 34.2 34.8 31.9 29 9 8.8 9.7 5.1 8.9 52 50 48 43 39
EQUITY Restricted GROUP Share capital reserves Closing balance according to last year's balance sheet 1,200 139,368 Adjustment between restricted and non-restricted reserves 27,893 Dividend Profit for the year Translation differences, foreign companies At year-end 1,200 167,261
Unrestricted reserves 78,146 -27,893 -10,000 56,358 204 96,815
nonPARENT COMPANY Share capital Reserve restricted equity Closing balance according to previous year's balance sheet 1,200 240 Dividend Profit for the year At year-end 1,200 240
62,182 -10,000 5,076 57,258
PROPOSAL FOR THE APPROPRIATION OF EARNINGS The Board and the CEO propose that the available earnings, 57,258 (KSEK), be appropriated as follows Carried forward 57,258 TOTAL 57,258 As regards the Company's results and financial position in general, please refer to the following financial statements with supplementary information and notes to the financial statements..
36 • WIBAX
INCOME STATEMENT
GROUP
PARENT COMPANY
Note 2018 2017 2018 2017 OPERATING INCOME Net sales 1 1,123,614 797,938 562,321 423,365 Work performed by the Company for its own use and capitalised 3,105 6,853 Other operating income 2 47,924 42,443 31,601 25,175 1,174,643 847,234 593,922 448,540 OPERATING EXPENSES Raw materials and consumables -854,031 -575,634 -454,522 -339,215 Other external expenses 3,4 -60,698 -60,272 -31,797 -27,431 Personnel costs 5 -128,523 -119,592 -37,656 -33,587 Depreciation of tangible and intangible fixed assets 6 -34,828 -28,567 -19,253 -13,652 Other operating expenses 7 -17,708 -17,594 -7,058 -7,000 Operating profit/loss 8 78,855 45,575 43,636 27,655 FINANCIAL STATEMENTS. FROM FINANCIAL ITEMS Distribution of shares in associated companies 6 6 Profit/loss from participations in Group companies 9 Interest income 10 1,207 450 Interest expenses and similar items 11 -7,411 -6,910 Profit/loss after financial items 72,657 39,121
- 448 -6,057 38,027
15 458 140 -6,093 37,160
Appropriations 12 -31,410 -17,632 Profit/loss before tax 72,657 39,121 6,617 19,528 Tax on the profit/loss for the year 13 -16,299 -8,940 Profit/loss for the year 56,358 30,181
-1,541 5,076
-1,061 18,467
WIBAX • 37
BALANCE SHEET
Note
GROUP 31/12/2018
PARENT COMPANY 31/12/2017
31/12/2018 31/12/2017
ASSETS FIXED ASSETS INTANGIBLE ASSETS Software expenses 14 2,935 2,559 Concessions, patents, licences, trademarks and similar rights 15 190 381 Goodwill 16 50 100 Advances, intangible fixed assets 111 111 3,286 3,151 TANGIBLE FIXED ASSETS Land and buildings 17 78,733 Plant and machinery 18 284,765 Equipment, tools, fixtures and fittings 19 37,67 Fixed assets under construction 20 5,414 406,579
2,526
2,167
2,526
2,167
80,312 78,733 80,312 221,981 235, 741 184,121 33,030 1,407 1,111 46,301 4,856 45,088 381,624 320,737 310,632
FINANCIAL ASSETS Shares in Group companies 21 14,945 14,842 Shares in associated companies 100 100 100 100 14 945 14 842 Total fixed assets CURRENT ASSETS
409,965
384,875
338,208
327,641
STOCK, ETC. Raw materials and consumables 43,241 67,019 42,486 65,017 Finished goods and goods for resale 46,283 56,229 Work in progress 218 66 Advance payments to suppliers 225 323 89,967 123,637 42,486 65,017 CURRENT RECEIVABLES Accounts receivable 222,641 161,961 99,851 86,369 Receivables from Group companies 2,671 9,199 Tax receivables 32 4,451 4,368 2,265 Other receivables 892 177 4 Prepaid expenses and accrued income 22 13,570 2,610 1,173 943 237,135 169,199 108,067 98,776 Cash and bank balances
23
11,571
-
Total current assets
338,673
292,836
150,553
163,793
TOTAL ASSETS
748,638
677,711
488,761
491,434
38 • WIBAX
Note
GROUP 31/12/2018
PARENT COMPANY 31/12/2017
31/12/2018 31/12/2017
EQUITY AND LIABILITIES RESTRICTED EQUITY Share capital (12,000 shares) 1,200 1,200 1,200 Restricted reserves 167,261 139,368 Statutory reserve 240 168,461 140,568 1,440 NON-RESTRICTED EQUITY Profit/loss brought forward 52,182 Non-restricted reserves 40,457 47,965 Profit/loss for the year 56,358 30,181 5,076 96,815 78,146 57,258
18,467 62,182
Total equity
265,276
1,200 240 1,440 43,715
218,714
58,698
63,622
UNTAXED RESERVES 24 Accumulated depreciation in excess of plan Tax allocation reserves
133,696 26,490 160 186
105,880 27,845 133 725
PROVISIONS Provisions for deferred tax 48,951 41,027 1,849 1,864 48,951 41,027 1,849 1,864 NON-CURRENT LIABILITIES Bank overdraft facilities 25 - 65,489 48,446 66,886 Other liabilities to credit institutions 26 173,847 168,766 125,619 130,829 173,847 234,255 174,065 197,715 CURRENT LIABILITIES Liabilities to credit institutions 26 31,045 Trade creditors 157,364 Other current liabilities 34,822 Accrued expenses and deferred income 27 37 333 260,564
26,924 24,460 22,960 111,544 51,454 57,865 18,883 9,789 6,739 26,364 8,260 6,944 183,715 93,963 94,508
TOTAL EQUITY & LIABILITIES
677,711
748,638
488,761
491,434
WIBAX • 39
CASH FLOW STATEMENT
GROUP
31/12/2018
PARENT COMPANY 31/12/2017
31/12/2018 31/12/2017
OPERATING ACTIVITIES EBIT 78,855 45,575 43,636 27,655 Adjustment for items not included in cash flow, etc. 34,637 28,811 19,183 13,652 Interest received 1,207 450 448 140 Interest paid -7,411 -6,910 -6,057 -6,093 Tax paid -8,427 -2,941 -1,555 -956 Cash flow from operating activities before 98,861 64,985 55,655 34,398 changes in working capital CASH FLOW FROM CHANGES TO WORKING CAPITAL Increase (-)/Decrease (+) in stock Increase (-)/Decrease (+) in operating receivables Increase (+)/ Decrease (-) in operating liabilities Cash flow from operating activities
33,670 -67,936 76,849 141,444
-56,720 -19,513 35,619 24,371
22,531 -9,291 -545 68,350
INVESTMENT ACTIVITIES Acquisition of subsidiary Acquisition of intangible fixed assets -1,470 -1,294 Acquisition of land and building - -5 013 Acquisition of tangible fixed assets -58,164 -89,674 Sale of tangible fixed assets 169 Cash flow from investment activities -59,465 -95,981
-103 -1,324 - -28,492 169 -29,750
-32,424 41,699 16,756 60,429
-1,062 -5 012 -73,932 -80,006
FINANCING ACTIVITIES Other Liabilities to credit institutions -5,210 39,789 Borrowings and amortisations (net) 5,081 38,726 Bank overdraft facilities -65,489 52,884 -18,440 -21,770 Dividends paid -10,000 -20,000 -10,000 -20,000 Dividend from subsidiaries 15,458 Group contributions received/paid -4,950 6,100 Cash flow from financing activities -70,408 71,610 -38,600 19,577 Cash flow for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at year-end
40 • WIBAX
11,571 0 11,571
0 0 0
0 0 0
0 0 0
ACCOUNTING PRINCIPLES & NOTES TO THE FINANCIAL STATEMENTS GENERAL ACCOUNTING PRINCIPLES The annual report has been prepared in accordance with the Annual Accounts Act and the general guidelines from the Swedish Accounting Standards Board 2012:1 (K3). CLASSIFICATION Fixed assets, non-current liabilities and provisions essentially consist of amounts expected to be recovered or paid more than twelve months after the balance sheet date. Current assets and current liabilities essentially consist of amounts expected to be recovered or paid within twelve months from the balance sheet date. VALUATION PRINCIPLES, ETC. Assets, provisions and liabilities have been entered at historical cost, unless otherwise stated below. DEFINITION OF KEY RATIOS Return on capital employed Profit/loss after financial items plus interest expenses as a percentage of the balance sheet total. Equity ratio Equity and untaxed reserves less deductions for deferred tax (22%) in relation to the balance sheet total. LEASING The Swedish Accounting Standards Board general guidelines on accounting for leases apply. The Group recognises assets leased under a financial lease as tangible assets, while future lease payments are recognised as liabilities. At initial recognition, the asset and the liability are recognised at the sum of future minimum lease payments. The parent company recognises all leases, both financial and operating, as operating leases. INTANGIBLE AND TANGIBLE FIXED ASSETS Tangible fixed assets are recognised at their acquisition cost net accumulated depreciation and any impairment. Component depreciation is applied to buildings. Land is not depreciated Straight-line depreciation is applied to the depreciable amount (acquisition cost less deductions for estimated residual value) over the asset's useful life as follows: Intangible Land and buildings Plant and machinery Equipment, tools, fixtures and fittings
4-5 years 20-70 years 5-20 years 3-7 years
The difference between depreciation according to plan and recorded depreciation is reported as balance sheet appropriations. FINANCIAL INSTRUMENTS Financial instruments are valued on the basis of their acquisition value. The instruments are recognised in the balance sheet when the company becomes a party to the contractual conditions for the instrument. Financial assets are
removed from the balance sheet when the right to receive cash flows from the instrument has expired or has been transferred, and the company has substantially transferred all risks and rewards associated with ownership. Financial liabilities are removed from the balance sheet when the obligations have been settled or have otherwise ceased. STOCK Stock is entered at the lower of the acquisition value according to the first-in first-out principle and the fair value. The risk of obsolescence has thus been taken into account. RECEIVABLES Receivables are stated at the lower of the nominal value and the amount at which they are expected to be received. RECEIVABLES AND LIABILITIES IN FOREIGN CURRENCY Receivables and liabilities in foreign currency were translated at the rate on the balance sheet date. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash and bank balance. CONSOLIDATED ACCOUNTS The consolidated income statements and balance sheets include all the companies in which the parent company, directly or indirectly, control more than 50% of the shares, as well as companies over which the group has a controlling influence through other means and a significant share of the results from their operations. ACQUISITION METHOD The consolidated accounts have been drawn up in accordance with the Swedish Financial Accounting Standards Council’s recommendation on consolidated accounts. All acquisitions of companies have been recognised in accordance with the acquisition method. Untaxed reserves recognised in the individual group companies are divided into two parts in the consolidated balance sheet, capital and tax. The capital part has been recorded as restricted reserves. The tax part has been recorded as provisions under deferred tax liability. RENTAL INCOME Rental income from the investment properties is recorded linearly in accordance with the terms and conditions of current lease agreements. REVENUE Revenue has been recognised at the fair value of amounts received or receivable and is reported if the Company is likely to benefit from the financial advantages and the income can be reliably estimated. Remuneration in the form of interest, royalty or dividend is recognised as revenue when it is probable that the company will enjoy the financial benefits that are associated with the transaction and when the income can be reliably estimated. Interest is recognised as revenue according to the so-called effective interest method. Royalty is allocated in accordance with the financial significance of the agreement in question. Dividend is recognised as revenue when the company’s right to payment is ensured.
WIBAX • 41
INCOME TAXES Total tax consists of current tax and deferred tax. Taxes are recognised in the income statement except when an underlying transaction is reported directly in equity, when associated tax effects are reported in equity. Current tax Current tax refers to income tax for the current financial year and the part of the income tax for previous financial years that has not yet been recognised. Current tax is calculated at the tax rates applying at the balance sheet date. Deferred tax Deferred tax is the income tax that relates to future financial years as a result of previous events. It is recognised using the balance sheet method. According to this method, deferred tax liabilities and deferred tax assets are recognised on temporary differences arising between the book value of assets and liabilities and their value for tax purposes and for other tax deductions or deficits. Deferred tax receivables are recognised net against deferred tax liabilities only if they can be settled by a net amount. Deferred tax is calculated on the basis of the current tax rate at the balance sheet date. Effects of changes to current tax rates are recognised in the period when the change was entered into law. Deferred tax receivables are recognised as a financial fixed asset and deferred tax liabilities are recognised as a provision. Deferred tax receivables regarding loss carry forwards or other future tax deductions are recognised to the extent it is likely that the deduction can be offset against future tax surpluses. Due to the relationship between accounting and taxation, the deferred tax liability on untaxed reserves is not recognised separately. PROVISIONS Provisions are recognised as obligations to third parties that are attributable to the financial year or previous financial years, and which on the balance sheet date are either ensured or probable but whose amounts or payment dates are uncertain.
42 • WIBAX
PAYMENTS TO EMPLOYEES Remuneration to employees refers to all types of payments made by the company to its employees. The company's remuneration includes salaries, paid holidays, paid leave of absence, bonuses and remuneration after termination of employment (pensions). This remuneration is recognised as it is earned. Remuneration to employees after termination of employment refers to defined-contribution or defined-benefit pension plans. Plans where fixed fees are paid and there is no obligation, neither legal nor constructive, to pay any amount over and above these fees are classified as defined-contribution plans. Other plans are classified as defined-benefit pension plans. The company makes no other long-term payments to employees. ESTIMATES AND ASSESSMENTS The preparation of financial statements and application of accounting principles is often based on management’s estimates, assessments and assumptions, which are deemed as being reasonable at the time when they were made. Estimates and assessments are based on experience and various other factors, which under current circumstances seem reasonable. The result of these is then used to assess the recognised values of assets and liabilities that are not readily apparent from other sources. The actual outcome may differ from these estimates and assessments. Estimates and assumptions are regularly revised. No significant sources of uncertainty in estimates and assumptions at the balance sheet date are deemed to entail a significant risk of substantial adjustment in the recognised amounts for assets and liabilities in the next financial year. GROUP CONTRIBUTIONS Group contributions received and paid are recognised as appropriations.
NOTES
NOTE 1 NET SALES GROUP Net sales - Of which transport allowance
2018 2017 1,123,614 16,812
797,938 15,799
PARENT COMPANY Net sales - Of which transport allowance
562,321 16,812
423,365 15,799
NOTE 2 OTHER OPERATING INCOME GROUP Exchange gains Rental income Other Total
2018 2017 17,085 30,066 773 47,924
17,424 24,327 692 42,443
PARENT COMPANY Exchange gains Rental income Other Total
6,879 24,499 223 31,601
7,425 17,568 182 25,175
NOTE 3 FEES AND REIMBURSEMENT OF EXPENSES TO AUDITORS GROUP Ernst & Young Audit assignments Tax advice Other services Total PARENT COMPANY Ernst & Young Audit assignments Tax advice Other assignments Total
2018 2017
419 18 111 548
408 21 248 677
178 18 14 210
187 21 248 456
NOTE 4 LEASING AGREEMENTS
2018 2017 PARENT COMPANY Assets held through operating leases For the year, the companies costs for leasing amounted to 743 788 Fees falling due - within a year 495 487 - later than one year but within five years 413 210
43 • WIBAX WIBAX • 43
NOTE 5 EMPLOYEES AND PERSONNEL EXPENSES
2018 2017
AVERAGE NUMBER OF EMPLOYEES PARENT COMPANY Male Female Total in parent company
26 27 26 23 52 50
SUBSIDIARIES SWEDEN Male Female
110 16
111 13
FINLAND Male Female
2 1
1 1
NORWAY Male Female
1 -
1 -
2 - 132 184
2 129 179
Percentage of women
Percentage of women
22 18
20 17
DENMARK Male Female Total in parent company Group total GENDER BREAKDOWN IN MANAGEMENT PARENT COMPANY Board of Directors Other senior executives
SALARIES, OTHER REMUNERATIONS AND SOCIAL INSURANCE CONTRIBUTIONS PARENT COMPANY Board of Directors & CEO Other employees Total, 1) Social contributions (of which pension costs) 2)
2,381 22,579 24,960 11,426 2,943
2,380 20,124 22,504 10,083 2,590
SUBSIDIARIES Board of Directors & CEO Other employees Total Social contributions (of which pension costs)
3,348 57,014 60,362 24,325 5,036
1,715 57,976 59,691 23,369 3,998
GROUP Board of Directors & CEO Other employees Total Social contributions (of which pension costs) 3)
5,729 79,593 85,322 35,751 7,979
4,095 78,100 82,195 33,452 6,588
1) Personnel costs have been reduced with the amount received in state aid 0 (0). 2) The parent company’s pensions costs include 529 (314) for the Board of Directors and the CEO concerning 2 (2) people. 3) The group’s pensions costs include 698 (314) for the company management concerning 3 (2) people.
44 • WIBAX
NOTE 6 DEPRECIATION OF TANGIBLE AND INTANGIBLE FIXED ASSETS GROUP Intangible Buildings Machinery Plant and equipment Total
2018 2017 1,335 1,579 21,392 10,522 34,828
1,101 1,509 15,738 10,219 28,567
PARENT COMPANY Intangible Buildings Machinery Plant and equipment Total
966 1,579 16,101 607 19,253
665 1,509 10,788 690 13,652
NOTE 7 OTHER OPERATING EXPENSES GROUP Exchange losses Other Total PARENT COMPANY Exchange losses Total
2018 2017 17,351 357 17,708
17,518 76 17,594
7,058 7,058
7,000 7,000
NOTE 8 PURCHASES AND SALES BETWEEN GROUP COMPANIES GROUP Parent company sales concerning group companies Parent company sales concerning group companies
2018 2017 73,392 75,003
42,915 63,414
NOTE 9 PROFIT/LOSS FROM PARTICIPATIONS IN GROUP COMPANIES
2018 2017
Dividend Total -
15,458 - 15,458
NOTE 10 OTHER INTEREST INCOME AND SIMILAR ITEMS GROUP Interest income Exchange rate differences Other Total
2018 2017 1,207 -9 9 1,207
PARENT COMPANY Interest income 448 Exchange rate differences -4 Other Total 448
456 -4 -2 450
146 -2 140
NOTE 11 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS GROUP Interest expenses Other Total PARENT COMPANY Interest expenses Other Total
2018 2017 7,116 295 7,411
6,292 618 6,910
5,798 259 6,057
5,521 572 6,093
WIBAX • 45
NOTE 12 APPROPRIATIONS Group contribution received Group contribution paid Accumulated depreciation in excess of plan Tax allocation reserve, provision for the year Tax allocation reserve, reversal for the year Total
2018 2017 10,700 -15,650 -27,815 -2,311 3,666 -31,410
14,100 -8,000 -22,794 -1,438 500 -17,632
NOTE 13 TAX ON THE PROFIT/LOSS FOR THE YEAR GROUP current tax expenses Of which deferred tax RECONCILIATION OF EFFECTIVE TAX: Recognised profit/loss before tax Tax on profit/loss for the year in accordance with current tax rate TAX EFFECT OF: - Other non-deductible costs/non-taxable revenue Recognised effective tax
2018 2017 -16,299 -7,910
-8,940 -146
72,657 -15,985
39,121 -8,607
-314 -16,299
-333 -8,940
Effective tax rate
22.4%
22.9%
PARENT COMPANY, current tax expenses Of which deferred tax RECONCILIATION OF EFFECTIVE TAX: Recognised profit/loss before tax Tax on profit/loss for the year in accordance with current tax rate (22%) TAX EFFECT OF: - Other non-deductible costs/non-taxable revenue Recognised effective tax
-1,541 14
-1,061 0
6,617 -1,456
19,528 -4,296
-85 -1,541
3,235 -1,061
Effective tax rate
23.3%
5.4%
NOTE 14 CAPITALISED EXPENSES FOR DEVELOPMENT AND SIMILAR WORK 2018 2017 GROUP Accumulated acquisition costs: - At the beginning of the year 5,024 3,807 - New acquisitions 1,471 1,250 - Divestments and retirements -33 6,495 5,024 Scheduled accumulated depreciation - At the beginning of the year -2,465 -1,695 - Divestments and retirements 11 - Scheduled depreciation -1,095 -781 -3,560 -2,465 Recorded value at year-end 2,935 2,559 PARENT COMPANY Accumulated acquisition cost: - At the beginning of the year - New acquisitions Scheduled accumulated depreciation - At the beginning of the year - Scheduled depreciation Recorded value at year-end
46 • WIBAX
4,518 3,456 1,325 1,062 5,843 4,518 -2,351 -1,686 -966 -665 -3,317 -2,351 2,526 2,167
NOTE 15 CONCESSIONS, PATENTS, LICENCES, TRADEMARKS GROUP Accumulated acquisition cost: - At the beginning of the year Scheduled accumulated depreciation - At the beginning of the year - Scheduled depreciation Recorded value at year-end
2018 2017
825 825 825 825 -444 -254 -191 -190 -635 -444 190 381
NOTE 16 GOODWILL GROUP Accumulated acquisition cost: - At the beginning of the year Scheduled accumulated depreciation - At the beginning of the year - Scheduled depreciation Recorded value at year-end
2018 2017 809 809 809 809 -709 -579 -50 -130 -759 -709 50 100
NOTE 17 LAND AND BUILDINGS 2018 2017 GROUP Accumulated acquisition cost: - At the beginning of the year 97,886 92,873 - New acquisitions 5,013 97,886 97,886 Scheduled accumulated depreciation - At the beginning of the year -17,574 -16,065 - Scheduled depreciation -1,579 -1,509 -19,153 -17,574 Recorded value at year-end 78,733 80,312 PARENT COMPANY Accumulated acquisition cost: - At the beginning of the year 97,886 92,873 - New acquisitions 5,013 97,886 97,886 Scheduled accumulated depreciation - At the beginning of the year -17,574 -16,065 - Scheduled depreciation -1,579 -1,509 -19,153 -17,574 Recorded value at year-end 78,733 80,312
NOTE 18 PLANT AND MACHINERY GROUP Accumulated acquisition cost: - At the beginning of the year - New acquisitions - Divestments and retirements - Reclassifications Scheduled accumulated depreciation - At the beginning of the year - Divestments and retirements - Scheduled depreciation Recorded value at year-end
2018 2017
344,222 18,646 -2,258 66,383 426,993
246,277 8,017 -496 90,424 344,222
-122,241 1,327 -21,314 -142,228 284,765
-106,710 204 -15,735 -122,241 221,981
WIBAX • 47
2018 2017 PARENT COMPANY Accumulated acquisition cost: - At the beginning of the year 268,939 177,428 - New acquisitions 1,338 946 - Divestments and retirements 90,565 - Reclassifications 66,383 336,660 268,939 Scheduled accumulated depreciation - At the beginning of the year -84,818 -74,030 - Impairment -10 788 - Scheduled depreciation -16,101 -100,919 -84,818 Recorded value at year-end 235,741 184,121
NOTE 19 FIXTURES AND FITTINGS, TOOLS AND INSTALLATIONS GROUP Accumulated acquisition cost: - At the beginning of the year - New acquisitions - Divestments and retirements - Reclassifications Scheduled accumulated depreciation - At the beginning of the year - Divestments and retirements - Scheduled depreciation Recorded value at year-end PARENT COMPANY Accumulated acquisition cost: - At the beginning of the year - New acquisitions - Divestments and retirements - Reclassifications Scheduled accumulated depreciation - At the beginning of the year - Divestments and retirements - Scheduled depreciation Recorded value at year-end
2018 2017
60,998 16,387 -5,860 259 71,784
59,404 11,961 -10,367
-27,968 4,452 -10,601 -34,117 37,667
-25,318 7,569 -10,219 -27,968 33,030
7,287 745 -133 259 8,158
6,709 578
-6,176 33 -608 -6,751 1,407
-5,486
60,998
7,287
-690 -6,176 1,111
NOTE 20, NEW CONSTRUCTIONS IN PROGRESS GROUP At the beginning of the year Reclassifications New acquisitions Recorded value at year-end
46,301 -67,297 26,410 5,414
63,932 -90,565 72,934 46,301
PARENT COMPANY At the beginning of the year Reclassifications New acquisitions Recorded value at year-end
45,088 -66,642 26,410 4,856
63,245 -90,565 72,408 45,088
48 • WIBAX
2018 2017
NOTE 21 SHARES IN GROUP COMPANIES Accumulated acquisition cost: - At the beginning of the year - Purchases Recorded value at year-end
2018 2017 14,842 103 14,945
14,842 14,842
Specification of the parent company’s holdings in group companies Referring to the holding share of the capital, which also correlates with the share of votes for the total number of shares. Recognised Equity Year’s profit/loss in % value Subsidiary / Corporate ID no. / HQ / No. of shares Wibax Logistics AB, 556375-5080, Piteå, 2,000 8,326 3,514 100 220 Wibax utv AB, 556499-9257, Piteå, 1,000 120 - 100 143 Wibax Perf. Chem. AB, 556547-9705, Piteå, 1,000 1,441 66 100 228 Wibax Industrial AB, 556346-1747, Piteå, 1,000 1,808 154 100 104 Wibax Biofuels AB, 556729-0894, Piteå, 1,000 39,842 19,319 100 11,274 Wibax OY, 2546247-1, Kotka (FIN), 1,000 2,255 269 100 2,644 Wibax Log. OY, 2957318-7, Jakobstad (FIN), 1,000 103 - 100 103 Wibax AS, 913456300, Skien (NOR), 100 270 35 100 109 Wibax ApS, 35842489, Karlslunde (DEN), 1,000 316 25 100 120 14,945
NOTE 22 PREPAID EXPENSES AND ACCRUED INCOME GROUP Insurance premiums Other items Total
2018 2017 5 13,565 13,570
130 2,480 2,610
PARENT COMPANY Insurance premiums Other items 1,173 Total 1,173
125 818 943
NOTE 23 CASH AND BANK BALANCES Balances available at banks and other credit institutions Total
2018 2017 11,571 11,571
0
NOTE 24 UNTAXED RESERVES
2018 2017
Accumulated depreciation in excess of schedule: 133,696 Tax allocation reserves: - Reserved in tax 2013 - Reserved in tax year 2013 2,636 - Reserved in tax year 2014 2,368 - Reserved in tax year 2015 9,158 - Reserved in tax year 2016 8,579 - Reserved in tax year 2017 1,438 - Reserved in tax year 2018 2,311 Total 160,186
105,880 3,666 2,636 2,368 9,158 8,579 1,438 133,725
NOTE 25 CREDIT GRANTED Bank overdraft facilities Granted amount on bank overdraft facilities for the group is MSEK 130 (MSEK 100) and in the parent company MSEK 130 (MSEK 100).
WIBAX • 49
NOTE 26 OTHER LIABILITIES TO CREDIT INSTITUTIONS GROUP Maturity within one year from the balance sheet date Maturity one to five years from the balance sheet date Maturity more than five years after the balance sheet date PARENT COMPANY Maturity within one year from the balance sheet date Maturity, one to five years from the balance sheet date Maturity more than five years after the balance sheet date
2018 2017 31,045 146,068 27,779 204,892
26,924 129,777 38,989 195,690
24,460 97,840 27,779 150,079
22,960 91,840 38,989 153,789
NOTE 27 ACCRUED EXPENSES AND PREPAID INCOME GROUP Liabilities related to personnel Other items Total
2018 2017 21,440 15,893 37,333
19,200 7,164 26,364
PARENT COMPANY Liabilities related to personnel Other items Total
5,765 2,495 8,260
4,786 2,158 6,944
NOTE 28 PROPOSED APPROPRIATION OF THE COMPANY'S PROFIT OR LOSS The Board and the CEO propose that the available earnings, 57,258 (KSEK), be appropriated as follows Amount Carried forward 57,258 Total 57,258
NOTE 29 PLEDGED ASSETS GROUP Property mortgages Floating charges Assets with retention of title Total
2018 2017 101,940 204,057 62,749 368,746
92,940 179,057 48,399 320,396
PARENT COMPANY Property mortgages Floating charges Total
101,940 145,512 247,452
92,940 130,512 223,452
NOTE 30 CONTINGENT LIABILITIES GROUP Contingent liabilities Contingent liability Norway PARENT COMPANY Contingent liabilities
2018 2017
1,362
1,362
None
None
NOTE 31 NUMBER OF SHARES PARENT COMPANY Number of shares Quota value (SEK)
50 • WIBAX
2018 2017 12,000 100
12,000 100
NOTE 32, CASH FLOW ANALYSIS – ADJUSTMENTS FOR ITEMS NOT INCLUDED IN THE CASH FLOW GROUP Depreciation Capital result Translations differences, etc. Total
2018 2017
PARENT COMPANY Depreciation Capital result Total
34,828 -279 88 34,637
28,567 234 10 28,811
19,253 - 19,183
13,652 70 13,652
Piteå 25 April 2019
Bo Wikund Director of the Board
Stina Blombäck Director of the Board
Rolf Back Director of the Board
Lars-Erik Aaro Director of the Board
David Wiklund Director of the Board
Andreas Wiklund Director of the Board
Jonas Wiklund Chief Executive Officer
Carina Sandström Employee representative
Anders Snell Chairman of the Board
My audit report was presented on 27 May 2019 Mats Lundin Authorised Public Accountant
WIBAX • 51
AUDIT REPORT To the Annual General Meeting of
WIBAX AB corporate ID no. 556262-9674 REPORT ON THE ANNUAL ACCOUNTS AND THE CONSOLIDATED ACCOUNTS Opinions I have audited the annual accounts and consolidated accounts of Wibax AB for the financial year 2018·01·01 · 2018·12·31. In my opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the Group as of 31 December 2018 and their financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. I therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the Group. Basis for Opinions I have conducted my audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. My responsibilities under these standards are further described in the Auditor’s responsibilities section. I am independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled my ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions. Information Not Pertaining to the Annual Accounts This document also contains information not pertaining to the annual accounts, on pages 3-9. The Board of Directors and the Chief Executive Officer are responsible for this information. My statement regarding the annual accounts does not consider this information and I make no statements regarding the validity of this additional information. In the process of auditing the annual accounts, it is my responsibility to read the information identified above and consider whether this information is, in any material respect, incompatible with the annual accounts. When reviewing this information, I also take into account other information that I have obtained during my audit process and assess whether this additional information appears to contain any material error. If I, based on the review that I have performed pertaining to this information, come to the conclusion that this additional information contains any material error, I am obligated to report it. I have nothing to report on this matter. Responsibilities of the Board of Directors and the Chief Executive Officer It is the responsibility of The Board of Directors and the Chief Executive Officer to prepare the annual accounts and consolidated accounts and to ensure that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Chief Executive Officer are also responsible for such internal control as they determine is necessary to
52 • WIBAX
enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, the Board of Directors and the Chief Executive Officer are responsible for the assessment of the company’s and the Group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. However, the going concern basis of accounting not applied if the Board of Directors and the Chief Executive Officer intend to liquidate the company, to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities My objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts. As part of an audit in accordance with ISAs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of the company’s internal control relevant to my audit in order to design audit procedures that are appropriate under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Chief Executive Officer. • Draw a conclusion regarding the appropriateness of the Board of Directors’ and the Chief Executive Officer’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. I also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the Group’s
ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify my opinion about the annual accounts and consolidated accounts. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation. •Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated accounts. I am responsible for the direction, supervision and performance of the Group audit. I remain solely responsible for my opinions. I must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. I must also inform of significant audit findings during my audit, including any significant deficiencies in internal control that I identified. REPORT ON OTHER STATUTORY AND REGULATORY REQUIREMENTS Opinions In addition to my audit of the annual accounts and consolidated accounts, I have also audited the administration of the Board of Directors and the Chief Executive Officer of Wibax AB for the financial year 2018-01-01 – 2018-12-31 and the proposed appropriations of the company’s profit or loss. I recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Chief Executive Officer be discharged from liability for the financial year. Basis for Opinions I have carried out the audit in accordance with generally accepted auditing standards in Sweden. My responsibilities under those standards are further described in the “Auditor’s responsibilities” section. I am independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled my ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions. Responsibilities of the Board of Directors and the Chief Executive Officer The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the Group’s type of operations, size and risks place on the size of the parent company’s and the Group’s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organisation and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the Group’s financial situation and ensuring that the company’s organisation is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Chief Executive Officer shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are
necessary to fulfil the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s Responsibilities My objective concerning the audit of the administration, and thereby my opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Chief Executive Officer in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. My objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby my opinion about this, is to assess with a reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, I exercise professional judgement and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on my professional judgement with a starting point in risk and materiality. This means that I focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. I examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to my opinion concerning discharge from liability. As a basis for my opinion concerning the Board of Directors’ proposed appropriations of the company’s profit or loss, I examined whether the proposal is in accordance with the Companies Act. Auditor’s Opinion on the Statutory Sustainability Report The Board of Directors and the Chief Executive Officer are responsible for the sustainability report on pages 3-9 and for ensuring that it has been prepared in accordance with the Annual Accounts Act. I have conducted my review in accordance with the FAR recommendation RevR 12 Auditor’s Opinion on the Statutory Sustainability Report. This means that my review of the sustainability report is different from and substantially smaller in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. I believe that this review provides sufficient basis for my opinion. A sustainability report has been prepared.
Uppsala, 27 May 2019
Mats Lundin Authorised Public Accountant
WIBAX • 53
BOARD OF DIRECTORS FOR WIBAX GROUP BO WIKLUND Director of the Board Engineer Founder and Owner. Holds 55% of the shares in the WIBAX group.
ANDERS SNELL Chairman of the Board since 2011. M.Sc. in Chemical Engineering from the Royal institute of Technology. Senior Consultant Anders Snell Business Consultant Other board commitments: Director of the Board of ÅF, Executive member of the ÅForsk foundation Previous employments: Senior Vice President BillerudKorsnäs, Senior Vice President Assi Domän, CEO Grycksbo Finpappersbruk, CEO Norrsundet Bruks AB
JONAS WIKLUND Director of the Board Holds 15% of the shares in the WIBAX group.
STINA BLOMBÄCK Director since 2015. M.Sc. in Chemical Engineering from the Royal institute of Technology CEO, Senior Consultant for Brännbacken Projekt AB. Other board commitments include Luleå Energi AB and Part Construction AB. Previous employments: Sustainability and Energy Director BillerudKorsnäs AB, CEO Billerud Karlsborg AB.
DAVID WIKLUND Director of the Board Holds 15% of the shares in the WIBAX group.
ROLF BACK Director of the Board since 1995. Doctor of Economics from the Stockholm School of Economics. He has held a number of CEO positions in companies of different sizes and in different industries, as well as a number of board commitments. He was the Head of Research at GI-IHR, Stockholm University and Professor at Luleå University of Technology. Member of the Royal Swedish Academy of Engineering Sciences and Norrbottensakademien
ANDREAS WIKLUND Director of the Board Holds 15 % of the shares in the WIBAX group.
LARS-ERIC AARO Director of the Board since 2016. Mining Engineer (M.Sc.) from Luleå University of Technology. Previous employments: Sales Director for the ÅF group and part of the group management, CEO and Group CEO of LKAB, senior positions at Secoroc, Boliden and AssiDomän. Member of the Royal Swedish Academy of Engineering Sciences as well as Honorary Doctor at Luleå University of Technology.
CARINA SANDSTRÖM Employee representative
54 • WIBAX
MANAGEMENT TEAM
JONAS WIKLUND CEO Wibax Group
DAVID WIKLUND MD Biofuels
ANDREAS WIKLUND Chief of House Property
MAGNUS SUNDSTRÖM MD Logistics
ANNICA PETTERSSON Chief of HR
ANNA BERGVALL Chief of QSE
FREDRIK NORDSTRÖM MD Industrial
HANS HENRIKSSON CPO
URBAN HAUGEN COO WPC
MICHAEL BODIN COO Production
MIKAEL KVIST MD Wibax OY
KRISTOFFER ÖVERHEM CFO
FREDRIK NYBERG CCO
WIBAX • 55
production/graphic design: mawix art · print: ågrenshuset · photos: birgitta holmström and otherS
OUR BUSINESS IS GOOD CHEMISTRY HEAD OFFICE: Batterigatan 12, 941 47 Piteå · Tel switchboard +46 911 250 200 www.wibax.com