ANNUAL- AND SUSTAINABILITY REPORT
2017
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.
C O N T E N TS Statement by the CEO ........................................................................................ 5 Sustainability Report .................................................................................... 7-20 Administration Report.................................................................................. 22-23 Group Operations ........................................................................................ 25-27 Financial Overview....................................................................................... 28-30 Income Statement ............................................................................................... 31 Balance Sheet................................................................................................. 32-33 Cash Flow Statement ........................................................................................ 34 Accounting Principles and Notes to the Financial Statements .... 35 Notes................................................................................................................... 36-43 Audit Report ................................................................................................... 44-45 Board of Directors ............................................................................................... 46 Management Group .......................................................................................... 47
WIBAX • 3
WIBAX IN BRIEF
EST.
1986
Wibax is a wholly-owned family company
TURNOVER 2017
847
THIS IS WHERE WE ARE
MILLION SEK TANKER TRUCKS
1 week
Piteå
Skellefteå Pietarsaari Örnsköldsvik FINLAND
Härnösand
NORGE
SVERIGE
Vaasa Sundsvall
Tampere Rauma Kotka
z
Gävle
Herre
OWNS THE ENTIRE CHAIN
Stockholm
Uddevalla
Wibax is the only chemicals distributor in Sweden with its own fleet of vehicles.
Norrköping
Kungälv
> 350,000 m3
Viborg DANMARK Malmö
Wibax’s total storage capacity in the cistern parks
Veijle
21% women
179
TERMINALS OFFICES
79% men
>162,000 tonnes
Average number of permanent employees in 2017
>1,100,000 tonnes
The fossil CO2 reduction gained in 2017 by Wibax customers when they converted from heating with fossil fuel to bio-oil
The total volume of chemicals and bio-oils handled each year
FOR CONSTANT IMPROVEMENT ISCC CERTIFICATE ISO 9001 + ISO 14001
=
43%
Percentage of renewable fuel driven by lorries in 2017
STATEMENT BY THE CEO 2017 was a year of continued strategic investments that have a significant impact for the Wibax Group, helping us to achieve expansion and the targets we have set. In terms of logistics, we have added further terminals, and we have now established an additional site in Jakobstad in Finland. This terminal was a good investment right from the start, with excellent potential for growth and, importantly, major strategic value in Wibax’s future development. During the year we have also achieved improved sustainability and a significant decrease in our CO2 emissions, which reduces our environmental impact. We have improved sustainability by converting the heating in the majority of our terminals to sustainable fuels instead of fossil fuels and by increasing the use of green fuels to almost 50% across the entire logistics. We are also particularly proud of having the expertise and the ability to help others to move towards eliminating their use of fossil fuels. One of our major strengths lies in the ability to combine the sale of bio-oils with our expertise in converting facilities using fossil fuels to new and better alternatives. In 2016 we celebrated 30 years and during the last year a new company logo was launched since our business has grown and evolved over the years. You will still recognize us but we have refreshed our logo to reflect who we are today and to symbolize our mission to contribute to a sustainable growth development – that is Good Chemistry for us. Jonas Wiklund
WIBAX • 5
6 • WIBAX
SUSTAINABILITY REPORT
WIBAX • 7
PRODUCTS
PRODUCTION
SERVICING/MAINTENANCE
L
CUSTOMER STORAGE/LOGISTICS DEVELOPMENT/KNOWLEDGE
SUSTANINABILITY
Control of the entire supply chain from producer to end customer, focusing on the customer! WIBAX's winning strategy comprises control of the entire supply chain from the producer to the end customer: from transport at sea and on land and tanker terminals to production, sales and customer care. Working alongside our customers, we are constantly developing new solutions with the focus on delivering more efficient processes for the customer, better overall economy and the lowest possible impact on the environment.
8 • WIBAX
OUR APPROACH TO SUSTAINABILITY Our goal of sustainable development means using resources as efficiently as we can and reducing our environmental impact as much as we can. Working sustainably has a positive impact for everyone. The impact is positive for employees, for owners, for customers, and for society in general - sustainable development means that society can develop by meeting our needs today without sacrificing the ability of future generations to meet their needs.
Wibax has identified the company’s key sustainability challenges where climate is the area we have the greatest opportunity to have an impact:
SOCIETY PERSISTENT
ENVIRONMENT
SUSTAINABLE DEVELOPMENT
FAIR
VIABLE
ECONOMY
• Emissions into the air from our transport and terminals • Risk of chemical emissions due to comprehensive chemical handling • Consumption of energy and resources • Handling waste products In addition, we also see the following sustainability challenges: • Equality within the company • Unhealthy competition within the transport industry • Control of the global purchasing chain
SUSTAINABILITY GOALS Wibax has related the company’s sustainability challenges to the UN’s 2030 Agenda for Sustainable Development, it will review the needs of the changed sustainable development goals in 2018.
41%
59%
In 2017 we had the following sustainability goals: • The Group will increase its share of renewable energy and increase its energy efficiency • The company will reduce emissions to air and water
Green energy Other energy
On 25 September 2015 the UN’s General Assembly formally adopted the historic resolution 2030 Agenda for Sustainable Development. The Agenda means that all 193 UN member countries have made a commitment to work to achieve a socially, environmentally and financially sustainable world by the year 2030. The Agenda contains 17 objectives which aim to eradicate poverty and hunger, realise human rights for all, achieve equality and empowerment for all women and girls and ensure lasting protection for the planet and its natural resources. The global objectives are integrated and indivisible, and balance the three dimensions of sustainable development: financial, social and environmental. This sustainability report describes how we are contributing to the global objectives for sustainable development. WIBAX • 9
DIALOGUE WITH INTERESTED PARTIES AND CERTIFICATIONS A sustainable society is created by committed employees acting responsibly to meet expectations and desires from society around them, which is a key condition for sustainable business that creates value. Our sustainability work is affected by our partners’ priorities so we communicate regularly with customers, employees, licensing authorities and other interested parties. Producing this first sustainability report has demonstrated that there is more potential to develop communication about sustainability with our partners, and we see opportunities for more integrated sustainability work. We currently have ongoing dialogue with our partners in the form of regular customer interviews, daily meetings for chemical deliveries and continual contact with other interested parties.
Importance for interested parties
In conjunction with producing this sustainability report, we carried out a sustainability survey with our customers. They graded each of the parameters between 1–9, which enabled us to identity the most important sustainability parameters to maintain a continued business partnership with those customers. In order to determine the parameters we should prioritise, we have compiled information from the surveys, together with a
grading of the options we have to influence each parameter. The results are shown in the figure below, with the sustainability aspects we will give priority circled.
CERTIFICATIONS Wibax AB and Wibax Logistics AB are certified in accordance with the ISO 9001 quality management system and the ISO 14001 environmental management system. WIBAX has conducted an independent review in order to ensure that we are meeting the sustainability criteria for biofuels and liquid biofuels. The review was conducted on Wibax's initiative in order to ensure that the fuels we sell are sustainable and not liable to any tax.
ISCC CERTIFICATES Wibax Biofuels AB is ISCC-certified for sustainably produced biofuels. In addition to Wibax’s current sustainability decision, the certification will confirm that our products meet the requirements of the EU Directive on the promotion of the use of energy from renewable sources (RED). The certification is issued by DNV GL. As ISCC is a global certification body, it probably opens more doors to business outside Sweden.
9 8.8 8.6 8.4 8.2 8 7.8 7.6 4 5 6 7 8 9 10 WHAT WIBAX CAN INFLUENCE
10 • WIBAX
Use of natural resources
Work on energy efficiency
Healthy employees
Reducing the amount of waste
Minimising land transport
Safe chemical handling
Minimising water usage
Equality & diversity
Secure transport
Reducing contaminants in the sea
Sales of bio-oil
Sustainable solutions & transport
CUSTOMER SOLUTIONS TO CREATE VALUE
EFFICIENT LOGISTICS FLOWS WITH LOW ENVIRONMENTAL IMPACT
Renewable share, %
We want to be as close to our customers as possible to reduce land transport and environmental impact in the form of air emissions. Today, Wibax has eight strategically located sea terminals throughout Sweden, and one in Jakobstad in Finland where we store our products. Good planning and combinations of various modes of transport, storage and return flows, enable us to minimise environmental impact and create effective logistics flows to our customers. Since 2007, Wibax's drivers have reduced their fuel consumption by more than 10% by using their skills and environmental awareness.
In 2016, we worked together with Michelin to prepare a tyre policy to streamline operations and help us to take a further step towards sustainable transport and reduced environmental impact. Our tyre policy enables us to have clear guidelines for changing tyres, re-treading, pattern cutting and checking air pressure. It increases safety for our transport, with a lower number of stoppages and reduced environmental impact, as raw materials are saved when re-treaded tyres are fitted and when tyres are pattern cut instead of being replaced for new ones. Pattern cut tyres provide on average 25% more miles and also just over 25% reduced rolling resistance, which in turn gives reduced fuel usage and thereby fewer emissions.
FOSSIL REDUCED TRANSPORT Since 2015, the goal of our work has been to increase the number of renewable fuels in our more than 40 tankers, as a result, in 2017 we achieved our highest level ever of 43% renewables in the total fuel usage. The drivers try to choose strategically located fuel stations that can supply fuels with high levels of renewables and Wibax has also agreed with one fuel supplier to swap their fuel to 100% HVO.
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
Carbon dioxide per transported tonne (kg)
Wibax is working to achieve sustainable development, optimum use of resources, minimal environmental impact and the best options for the environment. A large part of the business is focused on different sustainable customer solutions, where one of our subsidiaries converts incineration facilities from fossil to bio-oil, while another subsidiary sells bio-oil for incineration. A third subsidiary currently offers effective transport solutions with low environmental impact to distribute chemicals and bio-oils to customers.
2017
Share of renewable fuels in our transport Fossil carbon dioxide (kg) per transported tonne
1
Carbon dioxide emissions are calculated based on the fuel’s content of fossil carbon.
WIBAX • 11
HEALTHY AND RESPONSIBLE TRANSPORT In a partly unhealthy competition, with undercutting prices and an over-established market, we have taken a stand for a safe, clean and responsible haulage sector by being part of Fair Transport. This means that we drive safely, think in a climate smart way and offer good working conditions. We also have new tyres and alcohol interlocks, as well as following driving times and rest periods. Our drivers are trained in safety and the environment.
INCREASED LADEN MASS In 2016, Wibax Logistics operated a vehicle to transport up to 74 tonnes as part of a project to demonstrate the opportunities of using heavier and longer road trains for more efficient tank transportation. Being able to load more goods in each trip reduces emissions and leads to fewer HGVs on the roads, which is good for safety. The test was successful and in July 2017 a new weight classification was introduced, allowing trucks of up to 74 tonnes on all roads with sufficient bearing capacity. A limited road network for BK4 will be permitted in summer 2018 and the network will then be gradually increased in consultation with the business world in order to obtain as much benefit to society as possible. Wibax is waiting for the Swedish Transport Administration’s approval for the road network before a decision can be made on further investments in new 74-tonne vehicles.
FOSSIL-FREE HEATING FOR STORAGE IN CISTERNS In 2017 Wibax analysed its energy usage, this clearly shows that cistern heating for products that need to kept warm makes up just over a third of Wibax Group’s energy usage. Previously, this heating was created by burning fossil oil and electricity. The cisterns are insulated to reduce the need for heating, but it is important for Wibax to reduce the climate impact even further.
In 2016, Wibax received a grant from Klimatklivet to convert from fossil heating to burning bio-oils. The conversion at the terminal in Skelleftehamn began in 2016 and was completed at the beginning of 2017. In autumn 2017, the conversion of the facility in Norrköping was also completed. Our plan is to also convert a third facility in 2018. Wibax Logistics partly stores its own chemicals, but also rents out storage capacity and can therefore offer fossil-free heating for cistern storage, at a number of locations.
FOSSIL-FREE HEATING OF CUSTOMERS’ FACILITIES Wibax Biofuels is a subsidiary that sells bio-oil for heating. For customers this means that they go from fossil CO2 emissions to CO2-neutral emissions. Part of the sales work is to motivate customers who currently heat their facilities with fuel oil to convert their facilities. Wibax Industrial has the expertise to design and implement conversion for the customers. This way, the customers can choose the same partner for both the conversion and purchase of bio-oil, as well as more environmentally-friendly transportation of the oil. Wibax is unique in the industry in this respect because we own the entire logistics chain. Experience from the completed conversion shows that at the same time of the conversion, there is also optimisation, which means a reduction in oil usage despite the same heating needs. Based on bio-oil sales for the most recent year, customers have reduced their fossil CO2 emissions by around 162,000 tonnes. Based on truck transportation of chemicals, customers (and Wibax Logistics) have, over the last year, reduced their fossil CO2 emissions by a total of 2,690 tonnes. 2 The reduction in carbon dioxide is calculated based on the levels of fossil carbon in the fuel, with the difference if the fuel had been 100% fossil.
2
FAIR TRANSPORT
The Swedish Association of Road Transport Companies, the Swedish haulage sector's trade organisation, is working to achieve the healthy and profitable development of our sector. The organisation operates transport and socio-political issues concerning haulage companies, with the aim of strengthening Swedish competitiveness and improving the conditions for running a haulage company. The Swedish Association of Road Transport Companies was founded in 1917 and has over 6,000 members. 12 • WIBAX
GENERAL GOALS • A profitable attractive industry • Strong competitive power • Efficient transport • Traffic safety
CUSTOMER-TAILORED SUSTAINABLE PRODUCTS Wibax Industrial carries out chemical system cleaning – CIP (Cleaning In Place), which is an alternative to mechanical cleaning, where we minimise the risk of mechanical damage, create an improved working environment and reduce expensive downtime. Wibax’s in-house range of cleaning products, WiCLEAN, is used for cleaning of inorganic and organic coatings in all kinds of industry. They may be continuous processes or processes that are cleaned frequently or during maintenance stoppages. Wibax analyses which cleaning product is best suited for the cleaning assignment.
DUST BINDING Dust is a major problem within the mining industry and others, affecting both the working environment and safety. In addition to dust particles having an adverse effect on breathing, the resulting poor visibility and deposits can also increase the risk of accidents. High dust levels can also generate a risk of explosions. By minimising dust, we can reduce maintenance work and protect materials. Wibax has dust binding materials for different purposes such as ore mounds and depots, or for loading, unloading and transport. Wibax’s experienced team works closely with the customer to find the right products and technical solutions. With close follow-up and optimisation, environ-
mental benefits are made possible, such as water and energy savings. In addition, operating costs are minimised, availability increases and equipment lifespans are maximised.
WATER TREATMENT Through the cooperation with Suez, Wibax is able to provide a comprehensive product programme for water and process treatments in industry. We work in close collaboration with our customers in order to optimise treatments based on a cost and environmental perspective for sustainable development. Our expertise is in corrosion, deposits and microbiology, which are common problems in membrane facilities, boilers and cooling towers. By ensuring a well-functioning treatment, we can minimise the use of water, energy and chemicals, and contribute to a sustainable society. Wibax also has specific solutions for example for the steel, mining and petrochemical industries, where these issues also exist. Wibax coagulants and flocculants improve water quality and minimise sludge handling in the treatment of raw water and sewage. Wibax is actively working to meet challenges such as future emissions requirements. We have special products developed to maximise the separation of metals and handle foaming.
Relevant sustainability goals in accordance with Agenda 2030/Relevant Swedish environmental goals.
Limited environmental impact, Fresh air
WIBAX • 13
SUSTAINABLE BUSINESS 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 manufacturers. Wibax has around a hundred suppliers across over 10 different countries, the majority are from the EU. Purchasing includes raw materials, chemicals for distribution, transport, storage, plus other goods and services. In order to be a potential supplier to Wibax, the supplier must follow our code of conduct based on international conventions, policies and principles regarding conditions of work and employment, the environment and anti-corruption. We expect our suppliers to share our responsibilities in these areas and to work in accordance with sound, honest business principles. Before a contract is signed with new suppliers, the supplier is assessed based on a self-declaration, which is repeated at least every other year for existing suppliers. Suppliers are also followed up on-site. In 2017 there was a total of 65 supplier assessments made.
The focus for 2018 is to develop our supplier assessments with on-site audits where suppliers are prioritised based on a risk perspective and evaluated at least every other year. Wibax has a policy to not accept or offer to customers, prospective customers, government agencies or other business partners any form of compensation or reward that violates laws and good business practices. Our code of conduct is available to all employees and is also included in the introductory programme for new starters.
CUSTOMER SATISFACTION Wibax has a strategic goal of 98% of customers questioned to consider they have received what they expected or better from Wibax as a supplier - which was achieved during 2017. We have close dialogue with our customers, where we listen to specific requirements and needs in order to give customers what they expect, as well as conducting regular customer interviews. While preparing this sustainability report, we identified the need to develop the interview documentation that has previously been used, and we therefore created a new template.
Relevant sustainability goals in accordance with Agenda 2030/Relevant Swedish environmental goals
Limited environmental impact, Fresh air, Only natural acidification
14 • WIBAX
WIBAX AND SOCIETY
SPONSORSHIP Wibax wants to act as a positive force in society and happily supports local events at our main town of Piteå. This includes, for example, trade and industry, sport, culture or training and research within our field of expertise. Our target groups are young people, decision makers in society, and customers. Sponsoring must be gender neutral, support Wibax’s values on ethics and morals, consider environmental aspects and must not be offensive to or discriminate against individuals or communities. In 2017, Wibax sponsored a number of teams, including Wibax Patriots IBK, Barncancerfonden and Piteå IF ladies’ football.
Gender division sponsoring, number of sponsors
32%
41%
27%
Female Male Neutral
STUDENTS In 2017, Wibax offered student placements for both process operators and drivers. We took part in the LARV trade fair at Luleå Technical University, which is a platform for contact between students and companies.
We had a student from the university who took their exams, had two classes on study visits, one from secondary school and one from vocational college. Over summer, we had around 30 summer temps who helped within the group.
WIBAX • 15
EMPLOYEES ATTRACTIVE EMPLOYER WIBAX’s values constitute the powerful base we need to develop a strong and long-term shared culture that supports the business and motivates our employees. Wibax wants to be a workplace where everyone feels a sense of belonging, appreciation and pride, and where each employee is part of a team working towards a common goal. Our employees should have the same conditions, rights and development opportunities, and Wibax should make use of each employee’s specific competences to increase efficiency and productivity. Wibax should be an attractive employer and actively work on key activities within the Employee area to attract, retain and develop our committed employees. Wibax employees are safe in the knowledge that we follow the collective agreements appropriate for the industry and that the business is run in accordance with applicable legislation.
EMPLOYEE SURVEY In order to continue developing and improving as an organisation and employer, our employees’ viewpoints are very important to us. Every other year, we carry out an employee survey to gain our employees’ experiences on team efficiency, leadership, involvement and the psycho-social and organisational working environment. To measure the company’s attractiveness and the employees’ loyalty, we begin with the question; “How likely are you to recommend Wibax as a workplace to a friend?”
Very likely
Not at all likely
10 9 8 7 6 5 4 3 2 1 0 Ambassadors 10-9
Ambassadors
Passive 8-7
= Critics Score
Critics 6-0
NPS
DIAGRAM COMMITMENT
Net Promoter
(Max: +100 Min: -100)
23% COMMITTED Employees who love their job and do it excellently.
Wibax Employee index, NPS, is at 27 for 2017, compared to the benchmark that is at 8. Wibax is still considered to be an attractive employer.
Committed employees are hugely significant in achieving satisfied customers, which in turn creates profitability. We follow this through our Commitment Index, which for 2017 ended up at 79, where the benchmark is 77.
ENERGY
The result also shows that there is a high level of trust in how Wibax is managed, as well as that the employees are proud of working at Wibax. Based on the results of the employee survey, Wibax is within the Top 10 list in the category Construction & Manufacturing.
12%
UNFOCUSSED Employees who love doing things, but don’t know what they should do.
10% BORED Employees who don’t know what should be done and don’t care.
48%
SATISFIED Employees who know what they need to do and do it.
7% PASSENGERS Employees who know what should be done but don’t care enough to do it.
CLARITY 16 • WIBAX
HEALTHCARE We have an active healthcare programme to promote good health and enjoyment in the workplace. We offer both healthcare subsidies and hold communal healthcare activities focusing on habits and lifestyle. Wibax’s individual healthcare contribution is SEK 2000 per year per employee. A total of 44% of employees have used all or part of the healthcare contribution in 2017, with an average amount of SEK 1500 per person. During 2017, the healthcare programme also included themed activities, the Hälsolön project, and a step counting contest. The themed activities were spread out across the year, and all employees had the chance to test different types of exercise, such as mindfulness, spinning, aikido, kettlebells and circuit training.
The Hälsolön project took place over three months and consisted of a test group of ten people, who were offered a bonus for each exercise session completed. Those in the test group experienced positive improvements to their health during the test period, such as fewer headaches, better sleep and feeling more alert. In the autumn we held a step counting contest in which all employees were divided into teams and together they counted all their steps to take their team through Wibax’s business locations on an interactive map, from Kotka in Finland to Uddevalla in Sweden. The level of participation and involvement in the step counting contest was huge, and the employees felt it was a positive experience.
EMPLOYEES • Total permanent employees 179 • 21% women at Wibax
The percentage of women in the group is 21% (19%)
• Staff turnover; Percentage that left of their own accord 7%
43 yrs
Average age of employees
EQUALITY Wibax should be free from discrimination, harassment or reprisals related to any grounds of discrimination, such as gender, gender identity or expression, ethnicity, religion, disability, sexual orientation and age.
There must be action at all levels and the approach should be characterised by equality and diversity as well as respect and value for the individual and their integrity. In 2017, discrimination risks were analysed for the first time. The action plan is included in the Working Environment Plan for 2018.
WIBAX • 17
WORKING ENVIRONMENT AND SAFETY CULTURE Wibax will remain a safe place to work in which we work with issues related to the working environment in a systematic way. Using a range of measures such as risk assessments, safety rounds and working environment committee meetings, we regularly investigate, implement and follow-up working practices.
LTIF (LOST TIME INJURY FREQUENCY) In 2017, Wibax experienced 13 accidents, of which three required sickness absence. In 2018 our objective is to reduce the number of accidents compared with 2017 and to not have any sickness absence at all as a consequence of accidents in the workplace.
The aim is to prevent ill health and accidents in our workplace, and as a result create a satisfactory working environment for all employees. In 2017, we employed a working environment coordinator in order to assure continued safe working methods in line with our growth. We implement training to ensure that all employees know about the products, materials and equipment they need for their work.
LTIF is calculated based on the relationship between the number of accidents that led to at least one day of absence during the accounting period and the total work time. The relationship is calculated in relation to a million working hours.
LTI TRENDS IN THE LAST 3 YEARS 12
Accidents LTI value
10 8 6 4 2 0
2015 2016 2017
Accidents 1
1
3
LTI value 5.7
6.1
10.3
Relevant sustainability goals in accordance with Agenda 2030
18 • WIBAX
RISKS AND RISK MANAGEMENT In 2017, we carried out a comprehensive socio-economic analysis in the group and this enabled us to identify several risks associated with our business. These risks were drawn up in order to increase awareness of busi-
ness risks for the group as a whole. The management group is responsible for monitoring the company’s strategic and operational risks, as well as risks within sustainable business.
STRATEGIC RISKS RISK
RISK MANAGEMENT
ENVIRONMENTAL PERMIT RISKS Wibax operates a business that requires permits in accordance with the Environmental Code at all its locations. Insufficient permits and lengthy administration times impact the flexibility of storage and handling. Breaches of applicable environmental laws could lead to criminal penalties and enforcement actions. It may also affect any applicable permits.
It is extremely important for Wibax’s business to comply with environmental requirements. Without environmental permits, we would not be able to carry out our current operations. Wibax tries to work with foresight and long term planning in order for the permits to meet the business needs both in terms of scope and flexibility.
CUSTOMER DEPENDENCE Powerful economic fluctuations could increase the risk of reduced sales volumes.
Close and long-term customer relationships, technical cooperation and a flexible product portfolio as well as a broadened logistics system mean that Wibax is better equipped for potential economic fluctuations. Wibax also endeavours to offer customers high quality products and reliability of delivery, with the aim of being competitive.
POLITICAL RISKS The introduction of a mileage tax would have a considerable impact for our business operations. Changes in tax legislation related to sustainable choices could firstly impact the economic opportunities to drive vehicles with renewable fuel, and secondly impact the opportunity for the sale of bio-oils. Changes in regulations regarding haulage weights on transportation could impact the business and entail greater costs and a higher environmental impact when transporting chemicals to customers. Business risk could arise as a consequence of political decisions or changes to legislation and regulations that apply in the various countries where Wibax does business.
Our terminals are strategically located close to the customer in order to reduce the need for road transport. Wibax maintains an active socio-economic awareness to deal with political risks and cooperate with both national and international industry organisations to react to these risks.
VALUE CHAIN RISK PURCHASING That we trade with suppliers which do not meet the criteria we place on our suppliers, as the current system for checking and auditing is insufficient.
In 2018 we will develop supplier assessments and intensify our on-site visits to the highest risk suppliers.
WIBAX • 19
OPERATING RISKS RISK
RISK MANAGEMENT
RISKS OF ACCIDENTS AND INJURY Wibax employees and contractors are periodically subjected to high-risk situations that could entail a risk of accidents and/or injury.
Wibax actively works with working environment issues, and there are clear procedures for when and how risk assessments should be carried out. Training ensures that all employees are aware of the products, materials and equipment that are relevant to their work, which reduces the risk of accidents.
RISK OF ENVIRONMENTAL IMPACT DUE TO EMISSION OF CHEMICALS Emissions to air and water through accidents could have a negative impact on the ground and environment where the emission originates, consequently on Wibax’s trust and thus the ability to continue to run the business.
Trained drivers, good tyres and a conscious method of driving minimise the risks of traffic accidents and as a consequence reduce potential emissions of chemicals. Several of Wibax’s cistern parks already have embankments, and there are plans for further embankments for more cistern parks. We will prioritise the terminals housing particularly hazardous chemicals. The terminals are constantly risk assessed and any potential environmental emission points identified are remedied.
RISK OF INSUFFICIENT COMPETENCE The ability to retain existing employees and attract new ones with the right level of competence is a very important requirement for Wibax’s continued development.
Wibax aims to be an attractive employer. Wibax collaborates with secondary schools, vocational colleges and universities to take on trainees in order to create a relationship and find future employees.
RISK OF FAILURES IN THE SUPPLY CHAIN Failures in the supply chain could affect our ability to provide our customers with the promised product, which would damage us both financially and affect our brand.
We work with multiple suppliers of the same product in order to avoid interruptions in supply.
RISK OF FAILURE OF RENEWABLE FUEL Our drivers try to choose strategically located fuel stations which can provide fuel with a high level of renewable content, and a failure in availability would risk us needing to drive using more fossil fuel than we want to. 20 • WIBAX
Wibax maintains a socio-economic awareness and ensures close dialogue with fuel suppliers.
ANNUAL ACCOUNTS
WIBAX • 21
WIBAX AB 556262-9674
The Board of Directors and the CEO hereby submit these annual accounts and group accounts for the financial year 01/01/2017 - 31/12/2017.
ADMINISTRATION REPORT WIBAX GROUP
WIBAX
WIBAX
WIBAX
WIBAX
WIBAX
WIBAX
WIBAX
LOGISTICS
INDUSTRIAL
BIOFUELS
PERFORMANCE CHEMICALS
WIBAX OY
WIBAX AS
WIBAX APS
NATURE AND FOCUS OF OPERATIONS The WIBAX Group's core operations are the sale, import, production and distribution of chemicals, particularly liquid products in bulk. The Group will continue to strengthen its market positions with its existing operations.
OWNERSHIP STRUCTURE The Wibax group is 100 per cent owned by Bo Wiklund, Jonas Wiklund, Andreas Wiklund and David Wiklund.
WIBAX AB The parent company was registered in 1986, and the company headquarters are located in company-owned property in Piteå. The properties include offices, production premises, warehouses, workshops and wash halls. The parent company is responsible for purchasing, production, stockholding, sales, administration, quality and the environment, as well as safety and protection.
WIBAX LOGISTICS AB WIBAX Logistics is a wholly-owned subsidiary of WIBAX AB, with the primary task of coordinating the Group's land transport requirements, but also a number of external logistics tasks. The company’s vehicles are of a particularly high standard and quality and the personnel are experienced and competent.
22 • WIBAX
The company is one of the most comprehensive tanker transport companies in Sweden, with the capacity to transport most of the frequent chemicals to the processing industry. Wibax Logistics AB is also responsible for the operation and maintenance of the Group’s terminals.
WIBAX INDUSTRIAL AB Wibax Industrial is a wholly-owned subsidiary of Wibax AB and complements Wibax’s other operations. Its main mission is to add value to Group sales by offering complete solutions for system cleaning and other cleaning operations. In addition, the company operates as a mechanical and technical partner for our production and terminals with sound knowledge of mechanics, concrete and surface protection. Wibax Industrial carries out service and maintenance assignments within a wide range of areas in industrial environments and with the aid of high-tech products it can prevent, renovate and protect equipment made from metal and concrete.
WIBAX PERFORMANCE CHEMICALS AB Wibax Performance Chemicals AB is a wholly-owned subsidiary of Wibax AB. The company offers a broad spectrum of special and performance chemicals. The company is also responsible for development and market support for the entire Group.
They are at the forefront of the Group, providing support for new commercial products and technology. The development of new applications is a priority area that enables significant growth for the Group. The company also supports customers with product implementation and equipment for optimising their processes. The focus is on products for industrial water and process treatment, primarily in the fields of corrosion, deposition and microbiology control as well as self-produced anti-foaming and chemical cleaning products. This is possible in part thanks to our cooperation agreement with SUEZ, as well as through products we have developed ourselves. In the autumn of 2017, GE Power and Water sold its chemical section to SUEZ, which means that Wibax Performance Chemicals AB is now distributor of SUEZ chemicals in Sweden, Norway and Denmark. Through our cooperation agreement with SUEZ, we can offer our customers a wide range of speciality and performance chemicals.
WIBAX OY Wibax OY is a wholly-owned subsidiary of Wibax AB and is a sales company that works mostly with the pulp and paper industry, mining and metal industry, as well as with products for water treatment and road maintenance in Finland.
WIBAX AS Wibax AS is a wholly-owned subsidiary of Wibax AB. The company focuses on products for industrial water and process treatment, primarily in the fields of corrosion, deposition and microbiology controls.
WIBAX APS Wibax ApS is a wholly-owned subsidiary of Wibax AB. The company focuses on products for industrial water and process treatment, primarily in the fields of corrosion, deposition and microbiology controls.
WIBAX BIOFUELS AB Wibax Biofuels AB is a wholly-owned subsidiary of Wibax AB, offering bio-oils mainly for incineration, technical skills for implementation as well as optimisation.
WIBAX • 23
24 • WIBAX
GROUP OPERATIONS Wibax terminal operations have continued to grow and at the beginning of the year Wibax invested in another terminal located in Jakobstad in Finland. The Jakobstad terminal is a strategically important investment for Wibax, as well as a significant step in the continued development in Finland. We are witnessing a significant growth in bio-oils and several industries are choosing to convert to greener heating. Wibax has built its reputation based on competence and service; we assist our customers to convert incineration facilities and we also sell bio-oils. In combination with the storage and transportation of the oils, this makes Wibax a single-source supplier for green transformation.
seeing continued investments for increased production volumes. The financial year 2017 has been a stable year. We have noticed increased customer demand throughout Sweden, mostly thanks to our strategically placed terminals. At the Skutskär terminal we began storing caustic soda and sulphuric acid during the year, which is beneficial in terms of proximity to customers. Our investment in the Malmö terminal means that we have further strengthened our competitiveness for customers in southern Sweden. As in previous years, our supply of raw materials has worked well, and our delivery reliability is still good. We are seeing an increased demand in our products made in-house.
In production, we have carried out investments that have contributed to higher capacity, increased operational reliability and improved working environment. This allows us to produce greater volumes and take the next step for growth in products created in-house.
A general increase in prices has affected us, as well as the fact that one of our major products, caustic soda, has significantly increased in price over the year. This affects both Wibax and our customers.
At the end of 2017, Fredrik Nyberg started as the new marketing manager at Wibax. Over the last eight years, Fredrik has held senior positions in the ABB group, most recently as the Marketing and Sales Manager at ABB Composite in Öjebyn. He also has extensive experience in international sales, having also lived and worked abroad.
Sustainable transportation is generating increased interest, this is an area where Wibax and its fleet of vehicles has a competitive advantage as we have a considerable head start in terms of the sustainability. The expectations for 2018 are optimistic, we predict that demand will rise and match Wibax’s product portfolio.
INVESTMENTS
EXPECTED FUTURE DEVELOPMENT
Wibax terminal operations have continued to grow and during the year Wibax invested in an additional terminal located in Jakobstad, Finland; a terminal with major potential for Wibax’s continued development. In addition, we have completed two major projects in Skutskär and Norrköping, where we made investments which contributed to both increased customer satisfaction and safety. We have also started work on a large project in Uddevalla, which includes the creation of an embankment around the entire area.
Permits for our operations, particularly in relation to terminals, play a significant role in our continued development. Acquiring the environmental permit for the Malmö terminal has been a extended process, but it is now complete and will come into force at the beginning of 2018. This means that we will be able to store bio-oils and other products in the Malmö terminal, which is strategically located close to customers in southern Sweden and Europe.
PRODUCTION Over the past year, we have continued to invest in production of in-house products to further increase production capacity, primarily production of sulphate based and packaged products. These investments have primarily contributed to higher levels of product quality, increased delivery reliability and a better working environment for our operators. Many of the production processes are associated with an exothermic reaction, creating an excess of energy in the form of heat. We are therefore reviewing our options for reusing this energy - yet another contribution to Good Chemistry!
MARKET Sweden is experiencing an economic boom, and it shows - demand in the industry is generally good. In paper and pulp, our largest customer segment, we are
The demand of fossil-free heating is coming from an increasing number of industries, this means that the number of conversions and the need for bio-oil is expected to increase.
QUALITY, SAFETY AND ENVIRONMENT Permit issues and communication with the authorities for several of Wibax’s terminals have been an important and significant part of our work in 2017 and will continue to be so during 2018. Just before Christmas, we were granted an environmental permit for the Malmö terminal for the storage and handling of chemical products, and we are now beginning to make plans before starting the required rebuilding work. For the production operations in Piteå we plan to increase the production of sulphate salts. Therefore, in autumn, we submitted a permit application for existing and expanded operations in line with the Environmental Code to the Land and Environment Court of Appeal. WIBAX • 25
Wibax actively works with safety issues and we have strengthened the organisation over the year with a working environment coordinator. Our safety officer continues to train our customers in safe chemical handling.
OPERATING PERMITS Wibax is engaged in the production and storage of chemicals that require permits. The production unit in Piteå is an A-plant and has a permit to manufacture and store of chemicals. Our depots in Skellefteå, Örnsköldsvik, Härnösand, Skutskär, Norrköping and Uddevalla are class B facilities where we have permits to handle and store chemicals. Our depot on Haraholmen, Piteå, is a class C facility where we operate under a reporting requirement. Four of the facilities are Seveso operations where we currently operate storage in line with Seveso’s lower requirements. In Skelleftehamn we have permits for Seveso’s higher requirements. Our permits are of the utmost importance in enabling us to pursue the type of operations that we do.
PERFORMANCE CHEMICALS Wibax Performance Chemicals is responsible for the sales of special chemicals and development and market support for the entire Group. In the autumn of 2017, GE Power and Water sold its chemical arm to SUEZ, which means that Wibax Performance Chemicals AB is now distributor of SUEZ chemicals in Sweden, Norway and Denmark. Through our cooperation agreement with SUEZ, we can offer our customers a wide range of speciality and performance chemicals. Over the year, sales of both SUEZ products and in-house produced chemicals increased by more than 25%. With a focus on growth, we are also working on new commercial products and we are seeing increased interest in most of our in-house produced products
BIOFUELS Wibax Biofuels continued to grow during the year. This was the case despite profitability challenges, primarily due to the market price development for bio-oils. Currency fluctuations have also had a negative impact on pricing. Over the year we have expanded the product portfolio with more bio-oils in order to meet the market demand. We have also increased our
26 • WIBAX
storage capacity for bio-oils in Skutskär. In addition, we have widened our purchasing organisation in order to meet the increased demand on the Nordic market. We can see continued demand to replace fossil oils with bio-oils, primarily in the industrial and transport sectors. These sectors are increasingly discussing the need to be green and reduce their own environmental impact. We are also seeing a general increase in environmental awareness and an interest in what can be done to help care for our climate. We are pleased to report that Wibax has been nominated by the North Sweden Energy Agency as the year’s “Climate Champion from the North”, in the transformation category.
WIBAX INDUSTRIAL AB Wibax Industrial offers complete solutions for service and maintenance, repairs and cleaning. System cleaning operations are performed quickly and effectively in piping systems and plate and tube heat exchangers. The cleaning products are created and tested together with our customers. Together with Wibax Biofuels, we offer a complete solution converting furnaces from fossil fuel to biofuel. We also help with installation, start-up, optimisation and evaluations. We also provide project managers for external assignments. During the year we carried out a number of major maintenance operations, installation work and mechanical maintenance work in the pulp and paper industry.
WIBAX OY Wibax OY primarily works in the pulp and paper industry; other focus areas include mining and metal industries, as well as energy production and road maintenance. Through our cooperation with Suez Water Technologies & Solutions, we are working with deposition control and corrosion protection for, among others, the metal and chemical industries, where our services are highly valued. We are continuing to expand the business and we have also broadened our customer base by offering a wider product range. During the year we employed a new Account Manager based in Tammerfors. Wibax’s new terminal in Jakobstad means that we can offer the group’s expertise in storage, logistics and customer service allowing us to achieve quicker growth.
WIBAX LOGISTICS AB
Investments in vehicles continued according to plan and in accordance with our ambition to have a modern vehicle fleet that is well adapted for our activities and offers high efficiency, reliable delivery and the lowest environmental impact possible. Adapting the vehicle fleet to the new regulatory framework for higher gross weight has been an important element of this work, this conversion work will continue in 2018. We have also continued to increase the proportion of fossil-free fuel reaching a level where over half our transportation uses entirely renewable fuels.
investment in several terminals for the storage of liquid products. The terminals are an important strategic investment that are essential to achieve the group’s growth objective. This is primarily highlighted through the acquisition of our first terminal outside Sweden. At the beginning of the year we acquired the terminal in Jakobstad, Finland, which is Wibax’s ninth consecutive acquisition. The terminal is already in operation and is a base for the Group’s growth in Finland. The second terminal project that has been carried out is the completion of the Skutskär terminal, which is now fully operational. Storage capacity has been increased at the Norrköping terminal, and work has started at the Uddevalla terminal to increase capacity and create embankments, we expect this work to be complete in the second half of 2018.
During the year we have continued our work on rail transport. We use leased carriages and containers for transportation and we have also increased our own container capacity. Work is continuing to use the railway as an alternative form of transport for Wibax Logistics.
Our strength lies in the combination of transportation and storage. A business model that we have developed over the years and which has contributed to our strong position in the market. This makes Wibax Logistics a unique company in the sector, with the range, expertise, flexibility and strength to continue to grow.
2017 has been a year marked by continued growth and development. Continued investment in new terminals to create a base for the group’s continued growth is of particular significance.
Our position as one of Sweden’s largest bulk suppliers has been strengthened further through continued WIBAX • 27
FINANCIAL OVERVIEW
WIBAX GROUP Operating income - Operating profit/loss 1,000,000 900,000
50,000
1993-2017
45,000
800,000
40,000
700,000
35,000
600,000
30,000
500,000
25,000
400,000
20,000
300,000
15,000
200,000
10,000
100,000
5,000
0 2017
2016
2015
2013
2014
2012
2011
2008 2009
2010
2007 2008
2009
2006 2007
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
0 1993
KSEK
Operating income Operating profit/loss (EBIT)
WIBAX GROUP Key figures 45.0
1995-2017
40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0
Profit/loss after financial items as % of turnover Equity/assets ratio,% Return on capital employed
28 • WIBAX
2017
2016
2015
2014
2013
2012
2011
2010
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0.0
KSEK
WIBAX AB Operating income - Operating profit/loss 800,000 700,000
35,000
2000-2017
30,000
600,000
25,000
500,000
20,000
400,000 15,000
300,000
10,000
200,000
5,000
100,000 0 2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0 2000
KSEK
KSEK
Operating income Operating profit/loss (EBIT)
WIBAX LOGISTICS AB Operating income - Operating profit/loss 220,000 200,000
22,000
2000-2017
20,000
2017
2016
2015
2014
2013
2012
2011
KSEK
2010
2,000
0
2009
4,000
20,000 2008
6,000
40,000
2007
8,000
60,000
2006
80,000
2005
10,000
2004
12,000
100,000
2003
14,000
120,000
2002
16,000
140,000
2001
18,000
160,000
2000
180,000
0 KSEK
Operating income Operating profit/loss (EBIT)
WIBAX AB Investments 90,000 80,000
2000-2017
70,000 60,000 50,000 40,000 30,000 20,000
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
KSEK
2001
0
2000
10,000
WIBAX • 29
FINANCIAL OVERVIEW MULTI-YEAR COMPARISON, GROUP, KSEK
2017 2016 2015 2014 2013 Operating income 847,234 769,963 709,427 628,548 618,473 Operating profit/loss (EBIT) 45,575 50,510 47,139 46,118 39,909 Operating profit/loss before depreciation (EBITDA) 74,142 77,531 70,574 68,690 62,676 Profit/loss after financial items 39,121 44,681 39,256 41,295 32,636 Profit/loss as % of net sales 4.6 6.1 5.7 6.8 5.4 Balance sheet total 677,711 534,064 469,879 430,474 367,415 Equity/assets ratio, % 32.3 39.0 39.4 38.2 38.3 Return on capital employed, % 6.8 9.5 9.5 11.4 10.9 Average number of employees 179 175 154 162 148
MULTI-YEAR COMPARISON, PARENT COMPANY, KSEK
2017 2016 2015 2014 2013 Operating income 448,540 426,412 435,810 406,761 419,813 Operating profit/loss (EBIT) 27,655 22,178 20,558 29,692 13,788 Operating profit/loss before depreciation (EBITDA) 41,307 35,057 30,911 39,717 24,401 Profit/loss after financial items 37,160 37,021 13,530 25,016 7,709 Profit/loss as % of net sales 8.3 9.2 3.2 6.4 1.9 Balance sheet total 491,434 434,354 363,514 342,928 294,897 Equity/assets ratio, % 34.2 34.8 31.9 29 31 Return on capital employed, % 8.8 9.7 5.1 8.9 5.1 Average number of employees 50 48 43 39 40
PROPOSAL FOR APPROPRIATION OF EARNINGS The Board of Directors and CEO propose that the available remaining profit, KSEK 62,182, be allocated as follows: To be carried forward 62,182 TOTAL 62,182 As regards the company's profit/loss and financial position in general, please refer to the following income statement and balance sheet with the attached supplementary disclosures and notes to the financial statements. All amounts are in KSEK unless otherwise stated.
EQUITY GROUP Share capital Restricted Unrestricted reserves reserves Closing balance according to the previous years' balance sheet 1,200 118,680 Adjustment between restricted and unrestricted reserves 20,688 Dividend Profit/loss for the year Foreign currency translation differences at foreign companies At end of year
1,200
139,368
88,332 -20,688 -20,000 30,181 321 78,146
PARENT COMPANY Share capital Statutory Unrestricted reserve equity Closing balance according to the previous years' balance sheet 1,200 240 Dividend Profit/loss for the year At end of year 1,200 240
30 • WIBAX
63,715 -20,000 18,467 62,182
INCOME STATEMENT GROUP
PARENT COMPANY
Note 2017 2016 2017 2016 OPERATING INCOME Net sales 1 797,938 735,092 423,365 402,927 Capitalised work for own account 6,853 6,870 Other operating income 2 42,443 28,001 25,175 23,485 847,234 769,963 448,540 426,412 OPERATING EXPENSES Raw materials and consumables -575,634 -519,843 -339,215 -326,334 Other external expenses 3.4 -60,272 -42,188 -27,431 -24,820 Personnel expenses 5 -119,592 -115,406 -33,587 -32,150 Depreciation of tangible and intangible assets 6 -28,567 -27,021 -13,652 -12,879 Other operating expenses 7 -17,594 -14,995 -7,000 -8,052 Operating profit/loss 8 45,575 50,510 27,655 22,177 PROFIT/LOSS FROM FINANCIAL ITEMS Dividends from shares in associates 6 - Profit/loss from shares in subsidiaries 15,458 19,764 Interest income 9 450 266 140 123 Interest expense and similar profit/loss items 10 -6,910 -6,095 -6,093 -5,044 Profit/loss after financial items 39,121 44,681 37,160 37,020 Appropriations 11 -17,632 8,197 Profit/loss before tax 39,121 44,681 19,528 45,217 Tax on profit/loss for the year 12 -8,940 -10,151 -1,061 -5,789 Profit/loss for the year 30,181 34,530 18,467 39,428
WIBAX • 31
BALANCE SHEET GROUP PARENT COMPANY
Note 31/12/2017 31/12/2016 31/12/2017 31/12/2016 FIXED ASSETS INTANGIBLE ASSETS Expenditure on software 13 2,559 2,112 2,167 1,770 Concessions, patents, licences, trademarks and similar rights 14 381 571 Goodwill 15 100 230 Advances intangible assets 111 55 3,151 2,968 2,167 1,770 TANGIBLE ASSETS Buildings and land 16 80,312 76,808 80,312 76,808 Plant and machinery 17 221,981 139,567 184,121 103,398 Equipment, tools, fixtures and fittings 18 33,030 34,086 1,111 1,223 New construction in progress 19 46,301 63,932 45,088 63,245 381,624 314,393 310,632 244,674 FINANCIAL ASSETS Shares in group companies 20 14,842 14,842 Shares in associates 100 100 100 100 14,842 14,842 Total fixed assets 384,875 317,461 327,641 261,286 CURRENT ASSETS INVENTORIES, ETC. Raw materials and consumables 67,019 33,253 65,017 32,593 Finished products and goods for resale 56,229 33,012 Capitalised work for third-party account 66 349 Advances to suppliers 323 303 123,637 66,917 65,017 32,593 CURRENT RECEIVABLES Trade receivables 161,961 143,235 86,369 76,174 Receivables from Group companies 9,199 63,008 Tax receivables 4,451 2,584 2,265 Other receivables 177 303 - 15 Prepaid expenses and accrued income 21 2,610 3,564 943 1,278 169,199 149,686 98,776 140,475 Total current assets 292,836 216,603 163,793 173,068 TOTAL ASSETS 677,711 534,064 491,434 434,354
ASSETS
32 • WIBAX
GROUP PARENT COMPANY
Note
31/12/2017
31/12/2016
31/12/2017 31/12/2016
EQUITY AND LIABILITIES RESTRICTED EQUITY Share capital (12,000 shares) 1,200 1,200 1,200 1,200 Restricted reserves 139,368 118,680 Statutory reserve 240 240 140,568 119,880 1,440 1,440 UNRESTRICTED EQUITY Profit/loss brought forward 43,715 24,286 Unrestricted reserves 47,965 53,802 Profit/loss for the year 30,181 34,530 18,467 39,428 78,146 88,332 62,182 63,714 Total equity 218,714 208,212 63,622 65,154 UNTAXED RESERVES 23 Accumulated additional depreciation 105,880 83,086 Tax allocation reserves 27,845 26,907 133,725 109,993 PROVISIONS Provisions for deferred tax 41,027 35,111 1,864 1,759 41,027 35,111 1,864 1,759 NON-CURRENT LIABILITIES Bank overdraft facilities 24 65,489 12,605 66,886 88,656 Other liabilities to credit institutions 25 168,766 130,040 130,829 91,040 234,255 142,645 197,715 179,696 CURRENT LIABILITIES Liabilities to credit institutions 25 26,924 20,157 22,960 16,260 Advance payments from customers - 101 Trade payables 111,544 82,767 57,865 46,650 Current tax liabilities - 3,064 Other current liabilities 18,883 17,504 6,739 4,307 Accrued expenses and prepaid income 26 26,364 27,567 6,944 7,471 183,715 148,096 94,508 77,752 TOTAL EQUITY AND LIABILITIES 677,711 534,064 491,434 434,354
WIBAX • 33
CASH FLOW STATEMENT GROUP PARENT COMPANY
31/12/2017
31/12/2016
31/12/2017 31/12/2016
OPERATING ACTIVITIES Operating profit/loss 45,575 50,510 27,655 Adjustments for items not included in the cash flow 28,811 27,207 13,652 Interest received 450 266 140 Interest paid -6,910 -6,095 -6,093 Tax paid -2,941 -8,148 -956 Cash flow from operating activities before changes 64,985 63,740 34,398 in working capital CASH FLOW FROM CHANGES IN WORKING CAPITAL Increase (-)/Decrease (+) in inventories -56,720 -13,654 -32,424 Increase (-)/Decrease (+) in operating assets -19,513 -16,603 41,699 Increase (-)/Decrease (+) in operating liabilities 35,619 66,274 16,756 Cash flow from operating activities 24,371 99,757 60,429 INVESTING ACTIVITIES Acquisition of subsidiaries -1,700 Acquisition of intangible assets -1,294 -1,619 -1,062 Acquisition of buildings and land -5,013 -5,012 Acquisition of tangible assets -89,674 -60,059 -73,932 Acquisition of financial assets 738 Cash flow from investing activities -95,981 -62,640 -80,006 FINANCING ACTIVITIES Other liabilities to credit institutions 39,789 Loans and repayments (net) 38,726 28,302 Bank overdraft facilities 52,884 -55,419 -21,770 Dividend paid -20,000 -10,000 -20,000 Dividends from subsidiaries 15,458 Group contribution received (+)/made (-) 6,100 Cash flow from financing activities 71,610 -37,117 19,577 Cash flow for the year 0 0 0 Cash and cash equivalents at beginning of year 0 0 0 Cash and cash equivalents at end of year 0 0 0
34 • WIBAX
22,178 12,879 123 -5,044 -5,690 24,446
-747 -42,374 31,661 12,986 -1,787 -1,127 -37,693 -40,607 19,240 -16,792 -10,000 19,764 15,400 27,612 -9 9 0
ACCOUNTING PRINCIPLES AND NOTES TO THE FINANCIAL STATEMENTS GENERAL ACCOUNTING PRINCIPLES The annual accounts have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Accounting Standards Board 2012:1 (K3). CLASSIFICATION Fixed assets, long-term liabilities and provisions essentially only consist of amounts that are expected to be received or paid after twelve months, calculated from the balance sheet date. Current assets and current liabilities essentially only consist of amounts that are expected to be received or paid within twelve months, calculated from the balance sheet date. VALUATION PRINCIPLES ETC. Assets, provisions and liabilities have been valued at their acquisition value, unless otherwise stated below. DEFINITION OF KPIS Return on capital employed Profit/loss after financial items plus interest expenses as a percentage of the balance sheet total.
Equity/assets ratio Equity and untaxed reserves, net of deferred tax (22%), as a percentage of the balance sheet total. LEASING The Swedish Accounting Standards Board's advice on the accounting of leasing agreements is applied. In the Group, assets that are leased through a finance leasing agreement are recognised as an item of property, plant and equipment, while future lease payments are recognised as a liability. On initial recognition, the asset and liability are recognised at the amount of the future minimum lease payments. In the parent company, all leasing agreements, both financial and operating, are recognised as operating leases. INTANGIBLE AND TANGIBLE ASSETS Tangible assets are reported at their acquisition value less accumulated depreciation and possible write-downs. Land does not depreciate. Straight line depreciation takes place on depreciable amounts (the acquisition value less the calculated remaining amount) during the lifetime of the asset, according to the following: Product rights Buildings and land Plant and machinery Equipment, tools, fixtures and fittings
5 years 20-70 years 5-20 years 3-7 years
The difference between depreciation according to plan and reported depreciation is recognised as appropriations.
RECEIVABLES Receivables are reported at the lesser of either the nominal value or the amount at which they are estimated to be received. RECEIVABLES AND LIABILITIES IN FOREIGN CURRENCY Receivables and liabilities in foreign currency have been calculated using the exchange rate as at the balance sheet date. LIQUID FUNDS Liquid funds include cash and bank balances. GROUP ACCOUNTS The consolidated income statement and balance sheet include all companies in which the parent company directly or indirectly holds more than half of the shares' number of votes, as well as companies in which the Group has a controlling influence in other ways, and a more significant portion of the profit from operations. ACQUISITION ACCOUNTING The consolidated accounts have been prepared in accordance with the Swedish Financial Accounting Standards Council's recommendations for consolidated accounts. All company acquisitions have been reported in line with acquisition accounting. Untaxed reserves are reported in the individual group companies, divided in the group balance sheet into a capital portion and a tax portion. The capital portion has been supplied to restricted reserves. The tax portion is reported as provisions under the heading Deferred Tax Liability. RENTAL INCOME Rental income for buildings held for investment purposes is reported on a linear basis in accordance with the conditions stated in the applicable rental agreement. INCOME Income is reported to the extent that it is likely that the financial advantages will be credited to the company and the income can be calculated in a reliable manner. EMPLOYEE BENEFITS Employee benefits refer to all kinds of benefits the company provides to its employees. The company’s benefits include salaries, paid holiday, paid absence, bonuses and benefits once employment has ended (pensions). These are reported as they are earned. Employee benefits once employment has ended refer to defined contribution or defined benefit pension plans. Defined contribution plans are those plans where set contributions are paid and there are no legal or constructive obligations to make any other payment over and above these contributions. Other plans are classified as defined benefit pension plans. The company provides no other long-term benefits to employees.
INVENTORIES The inventory is entered at either the acquisition value or the actual value, whichever is the lowest, according to the first in first out principle. As a result, the risk of obsolescence has been taken into account.
WIBAX • 35
NOTES NOTE 1 NET SALES
2017 2016 GROUP Net sales 797,938 735,092 - Of which transport allowance 15,799 15,816 PARENT COMPANY Net sales 423,365 402,927 - Of which transport allowance 15,799 15,816
NOTE 2 OTHER OPERATING INCOME
2017 2016 GROUP Exchange gains 17,424 -16,321 Rental income 24,327 9,586 Other 692 2,094 Total 42,443 28,001 PARENT COMPANY Exchange gains 7,425 9,770 Rental income 17,568 13,577 Other 182 138 Total 25,175 23,485
NOTE 3 FEES AND EXPENSES REMUNERATION TO AUDITORS
2017 2016 GROUP Ernst & Young Audit assignment 408 404 Tax consultancy services 21 51 Other services 248 70 Total 677 525 PARENT COMPANY Ernst & Young Audit assignment 187 179 Tax consultancy services 21 51 Other assignments 248 13 Total 456 243
NOTE 4 LEASING AGREEMENTS
2017 2016 PARENT COMPANY Assets held through operational leasing agreements During the year, the company's leasing expenses amounted to 788 839 Fees due - within one year 487 754 - later than one year but within five years 210 1,483
36 • WIBAX
NOTE 5 EMPLOYEES AND PERSONNEL EXPENSES
2017 2016
AVERAGE NUMBER OF EMPLOYEES
PARENT COMPANY Men 27 28 Women 23 20 Total in parent company 50 48 SUBSIDIARIES SWEDEN Men 111 108 Women 13 14 FINLAND Men 1 2 Women 1 NORWAY Men 1 1 Women DENMARK Men 2 2 Women Total at subsidiaries 129 127 Group total 179 175 GENDER DISTRIBUTION IN SENIOR MANAGEMENT Ratio women Ratio women as % as % PARENT COMPANY Board of Directors 20 20 Other senior executives 17 17 SALARIES, OTHER REMUNERATION AND PAYROLL OVERHEAD COSTS PARENT COMPANY Board of Directors and CEO 2,380 1,959 Other employees 20,124 19,236 Total, 1) 22,504 21,195 Payroll overhead costs 10,083 9,251 (of which pension costs) 2) 2,590 2,190 SUBSIDIARIES Board of Directors and Managing Director 1,715 1,451 Other employees 57,976 56,346 Total 59,691 57,797 Payroll overhead costs 23,369 22,352 (of which pension costs) 3,998 3,665 GROUP Board of Directors and CEO 4,095 3,411 Other employees 78,100 75,582 Total 82,195 78,993 Payroll overhead costs 33,452 31,602 (of which pension costs) 3) 6,588 5,855 1) Personnel expenses have decreased with the receipt of government support 0 (0). 2) Of the parent company's pension costs, 314 (prev. yr. 334) refers to company Board of Directors and Managing Director in respect of 2 (2) people. 3) Of the Group's pension costs, 314 (prev. yr. 334) refers to company management in respect of 2 (2) people.
WIBAX • 37
NOTE 6 DEPRECIATION OF TANGIBLE AND INTANGIBLE ASSETS
2017 2016 GROUP Intangible 1,101 902 Buildings 1,509 1,439 Machinery 5,738 15,439 Inventories 10,219 9,241 28,567 27,021 PARENT COMPANY Intangible 665 440 Buildings 1,509 1,439 Machinery 10,788 10,233 Inventories 690 767 13,652 12,879
NOTE 7 OTHER OPERATING INCOME
2017 2016 GROUP Exchange losses 17,518 14,294 Other 76 701 Total 17,594 14,995 PARENT COMPANY Exchange losses 7,000 8,052 Total 7,000 8,052
NOTE 8 PURCHASES AND SALES BETWEEN GROUP COMPANIES
2017 2016 GROUP Parent company sales in respect of Group companies 42,915 33,164 Parent company purchases in respect of Group companies 63,414 64,393
NOTE 9 OTHER INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS
2017 2016 GROUP Interest income 456 266 Foreign exchange differences -4 Other -2 Total 450 266 PARENT COMPANY Interest income 146 123 Foreign exchange differences -4 Other -2 Total 140 123
NOTE 10 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS
2017 2016 GROUP Interest expenses 6,292 5,600 Other 618 495 Total 6,910 6,095 PARENT COMPANY Interest expenses 5,521 4,672 Other 572 372 Total 6,093 5,044
38 • WIBAX
NOTE 11 APPROPRIATIONS
2017 2016 Group contributions received 14,100 50,262 Group contribution paid -8,000 -34,862 Changes in additional depreciation -22,794 1,376 Tax allocation reserve, annual provision -1,438 -8,579 Tax allocation reserve, annual cancellation 500 Total -17,632 8,197
NOTE 12 TAX ON PROFIT/LOSS FOR THE YEAR
2017 2016 GROUPcurrent tax expenses -8,940 -10,151 Of which deferred tax -146 RECONCILIATION OF EFFECTIVE TAX: Profit/loss reported before tax 39,121 44,681 Tax on profit/loss for the year according to applicable tax rate -8,607 -9,830 TAX EFFECT OF: - Other non-deductible expenses/non-taxable income -333 -321 Effective tax reported -8,940 -10,151 Effective tax rate 22.9% 22.7% PARENT COMPANYcurrent tax expenses -1,061 -5,789 Of which deferred tax -107 RECONCILIATION OF EFFECTIVE TAX: Profit/loss reported before tax 19,528 45,218 Tax on profit/loss for the year according to applicable tax rate (22%) -4,296 -9,948 TAX EFFECT OF: - Other non-deductible expenses/non-taxable income 3,235 4,159 Effective tax reported -1,061 -5,789 Effective tax rate 5.4% 12.8%
NOTE 13 CAPITALISED EXPENDITURE ON DEVELOPMENT WORK AND SIMILAR WORK
2017 2016 GROUP Accumulated acquisition value: -At beginning of year 3,807 2,896 -New acquisitions 1,250 1,478 -Disposals -33 -567 5,024 3,807 Accumulated depreciation according to plan: -At beginning of year -1,695 -1,313 -Disposals 11 161 -Annual depreciation according to plan -781 -543 -2,465 -1,695 Reported value at end of year 2,559 2,112 PARENT COMPANY Accumulated acquisition value: -At beginning of year 3,456 2,330 -New acquisitions 1,062 1,126 4,518 3,456 Accumulated depreciation according to plan: -At beginning of year -1,686 -1,246 -Annual depreciation according to plan -665 -440 -2,351 -1,686 Reported value at end of year 2,167 1,770
WIBAX • 39
NOTE 14 CONCESSIONS, PATENTS, LICENCES, TRADEMARKS
2017 2016 GROUP Accumulated acquisition value: -At beginning of year 825 825 825 825 Accumulated depreciation according to plan: -At beginning of year -254 -64 -Annual depreciation according to plan -190 -190 -444 -254 Reported value at end of year 381 571
NOTE 15 GOODWILL
2017 2016 GROUP Accumulated acquisition value: -At beginning of year 809 721 -New acquisitions 88 809 809 Accumulated depreciation according to plan: -At beginning of year -579 -409 -Annual depreciation according to plan -130 -170 -709 -579 Reported value at end of year 100 230
NOTE 16 BUILDINGS AND LAND
2017 2016 GROUP Accumulated acquisition value: -At beginning of year 92,873 92,873 -New acquisitions 5,013 97,886 92,873 Accumulated depreciation according to plan: -At beginning of year -16,065 -14,626 -Annual depreciation according to plan -1,509 -1,439 -17,574 -16,065 Reported value at end of year 80,312 76,808 PARENT COMPANY Accumulated acquisition value: -At beginning of year 92,873 92,873 -New acquisitions 5,013 97,886 92,873 Accumulated depreciation according to plan: -At beginning of year -16,065 -14,626 -Annual depreciation according to plan -1,509 -1,439 -17,574 -16,065 Reported value at end of year 80,312 76,808
NOTE 17 PLANT AND MACHINERY
2017 2016 GROUP Accumulated acquisition value: -At beginning of year 246,277 236,084 -New acquisitions 8,017 8,390 -Disposals -496 -2,928 -Reclassifications 90,424 4,731 344,222 246,277 Accumulated depreciation according to plan: -At beginning of year -106,710 -92,108 -Disposals 204 854 -Write-downs -2,805 -Annual depreciation according to plan -15,735 -12,651 -122,241 -106,710 Reported value at end of year 221,981 139,567
40 • WIBAX
PARENT COMPANY Accumulated acquisition value: -At beginning of year 177,428 -172,060 -New acquisitions 946 637 -Reclassifications 90,565 4,731 268,939 177,428 Accumulated depreciation according to plan: -At beginning of year -74,030 -63,798 -Write-downs -2,000 -Annual depreciation according to plan -10,788 -8,232 -84,818 -74,030 Reported value at end of year 184,121 103,398
NOTE 18 EQUIPMENT, TOOLS, FIXTURES AND FITTINGS
2017 2016 GROUP Accumulated acquisition value: -At beginning of year 59,404 51,418 -New acquisitions 11,961 19,709 -Disposals -10,367 -11,723 60,998 59,404 Accumulated depreciation according to plan: -At beginning of year -25,318 -25,281 -Disposals 7,569 9,136 -Annual depreciation according to plan -10,219 -9,173 -27,968 -25,318 Reported value at end of year 33,030 34,086 PARENT COMPANY Accumulated acquisition value: -At beginning of year 6,709 6,585 -New acquisitions 578 295 -Disposals -171 7,287 6,709 Accumulated depreciation according to plan: -At beginning of year -5,486 -4,764 -Disposals 45 -Annual depreciation according to plan -690 -767 -6,176 -5,486 Reported value at end of year 1,111 1,223
NOTE 19 CONSTRUCTION IN PROGRESS
2017 2016 GROUP At beginning of year 63,932 31,679 Reclassifications -90,565 -4,731 New acquisitions 72,934 36 984 Reported value at end of year 46,301 63,932 PARENT COMPANY At beginning of year 63,245 31,090 Reclassifications -90,565 -4,731 New acquisitions 72,408 36,886 Reported value at end of year 45,088 63,245
WIBAX • 41
NOTE 20 SHARES IN GROUP COMPANIES
2017 2016 Accumulated acquisition value: -At beginning of year 14,842 13,055 -Purchases 1,787 Reported value at end of year 14,842 14,842 Specification of parent company's shareholdings in Group companies This refers to the participating interest in the capital, which is also in agreement with the number of votes for the total number of shares. Subsidiaries / Corp. Id. No / Reg. Office / Number of shares Equity Profit/loss for the year as % of Reported value Wibax Logistics AB, 556375-5080, Piteå, 2,000 shares 4,701 164 100 220 Wibax utv AB, 556499-9257, Piteå, 1,000 shares 120 - 100 143 Wibax Perf. Chem. AB, 556547-9705, Piteå, 1,000 shares 1,375 61 100 228 Wibax Industrial AB, 556346-1747, Piteå, 1,000 shares 1,654 34 100 104 Wibax Biofuels AB, 556729-0894, Piteå, 1,000 shares 20,523 5,920 100 11,274 Wibax OY, 2546247-1, Kotka (Finland), 1,000 shares 1,842 250 100 2,644 Wibax AS, 913456300, Skien (Norway), 100 shares 231 24 100 109 Wibax ApS, 35842489, Karlslunde (Denmark), 1,000 shares 280 21 100 120 14,842
NOTE 21 PREPAID EXPENSES AND ACCRUED INCOME 2017 2016 GROUP Insurance premiums 130 303 Advance payments customers/suppliers 1,627 Other items 2,480 1,634 Total 2,610 3,564 PARENT COMPANY Insurance premiums 125 48 Advance payments customers/suppliers 447 Other items 818 783 Total 943 1,278
NOTE 22 CASH AND BANK BALANCES Available balances at banks and other credit institutions Total
2017 2016 - 0 0
NOTE 23 UNTAXED RESERVES
2017 2016
Accumulated additional depreciation: 105,880 83,086 Tax allocation reserves: -Provision for tax in 2012 500 -Provision for tax in 2013 3,666 3,666 -Provision for tax year 2013 2,636 2,636 -Provision for tax year 2014 2,368 2,368 -Provision for tax year 2015 9,158 9,158 -Provision for tax year 2016 8,579 8,579 -Provision for tax year 2017 1,438 Total 133,725 109,993
NOTE 24 CREDIT GRANTED Bank overdraft facilities The granted amount of bank overdraft facilities in the Group amounts to SEK 100 million (SEK 100 million), and in the parent company to SEK 100 million (SEK 100 million).
NOTE 25 OTHER LIABILITIES TO CREDIT INSTITUTIONS
2017 2016 GROUP Due date within one year from the balance sheet date 26,924 20,157 Due date one to five years from the balance sheet date 129,777 104,040 Due date more than five years from the balance sheet date 38,989 26,000 195,690 150,197 PARENT COMPANY Due date within one year from the balance sheet date 22,960 16,260 Due date one to five years from the balance sheet date 91,840 65,040 Due date more than five years from the balance sheet date 38,989 26,000 153,789 107,300 42 • WIBAX
NOTE 26 ACCRUED EXPENSES AND PREPAID INCOME
2017 2016 GROUP Personnel-related liabilities 19,200 18,997 Other items 7,164 8,570 Total 26,364 27,567 PARENT COMPANY Personnel-related liabilities 4,786 4,707 Other items 2,158 2,763 Total 6,944 7,470
NOTE 27 PROPOSED APPROPRIATION OF THE COMPANY’S PROFIT OR LOSS The Board of Directors and CEO propose that the available remaining profit, 62,182 (KSEK), be allocated as follows: Amount To be carried forward 62,182 Total 62,182
NOTE 28 PLEDGED ASSETS
2017 2016 GROUP Real estate mortgages 92,940 67,240 Chattel mortgages 179,057 156,557 Assets with reservation of title 48,399 49,112 Total 320,396 272,909 PARENT COMPANY Real estate mortgages 92,940 67,240 Chattel mortgages 130,512 130,512 Total 223,452 197,752
NOTE 29 CONTINGENT LIABILITIES
2017 2016 GROUP Contingent liabilities Contingent liability Norway 1,362 1,362 PARENT COMPANY Contingent liabilities None None
NOTE 30 NUMBER OF SHARES 2017 2016 PARENT COMPANY Number of shares 12,000 12,000 Par value (SEK) 100 100
Piteå, 10/04/2018
Anders Snell Chairman of the Board
Bo Wiklund, Board Member
Rolf Back, Board Member
Lars-Erik Aaro, Board Member
Stina Blombäck, Board Member
David Wiklund, Board Member
Jonas Wiklund Managing Director
Carina Sandström Employee Representative
My audit report was submitted on 09/05/2018 Andreas Wiklund, Board Member Mats Lundin Authorised Public Accountant
WIBAX • 43
AUDIT REPORT To the annual general meeting of
WIBAX AB Corporate Identity Number 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 01/01/2017 31/12/2017. 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 2017 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 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. Responsibilities of the Board of Directors and the Chief Executive Officer The Board of Directors and the Chief Executive Officer are responsible for the preparation of the annual accounts and consolidated accounts and 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 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. The going concern basis of accounting is however 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 conduct-
44 • WIBAX
ed 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 in 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. • Conclude on 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 01/01/2017 – 31/12/2017 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.
Uppsala, 9 May 2018
Mats Lundin Authorised Public Accountant
WIBAX • 45
BOARD OF DIRECTORS FOR WIBAX GROUP BO WIKLUND Board Member Engineer Founder and Owner. 55% shareholding in WIBAX Group.
ANDERS SNELL Chairman of the Board since 2011. MSc Engineering in Chemistry from the Swedish Royal Institute of Technology Senior consultant Anders Snell Business consultant Other directorships: Board Member Teknikkonsulten ÅF, Executive Board Member ÅForsk Foundation Previous employment: Senior Vice-President BillerudKorsnäs, Senior Vice-President Assi Domän, CEO Grycksbo Finpappersbruk, CEO Norrsundet Bruks AB
JONAS WIKLUND Board Member 15% shareholding in WIBAX Group.
STINA BLOMBÄCK Board Member since 2015. MSc Engineering in Chemistry from the Swedish Royal Institute of Technology. CEO, Senior Consultant for Brännbacken Projekt AB. Other directorships, including at Luleå Energi AB and Part Construction AB. Previous employment: Sustainability and Energy Director, Billerud-Korsnäs AB, CEO Billerud Karlsborg AB.
DAVID WIKLUND Board Member 15% shareholding in WIBAX Group
ROLF BACK Board Member since 1995. Doctor of Economics at Stockholm School of Economics. Has held a number of posts as CEO at companies of varying size in different industries and also several directorships. Has been Research Manager at GI – IHR at Stockholm University and Professor at Luleå University of Technology. Member of The Royal Swedish Academy of Engineering Sciences (IVA) and member of Norrbottensakademien.
ANDREAS WIKLUND Board Member 15% shareholding in WIBAX Group
LARS-ERIC AARO Board Member since 2016. MSc Mining Engineering from Luleå University of Technology. Previous employment: Sales Director of the ÅF Group and member of the group management, CEO and Group President of LKAB, senior executive positions at Secoroc, Boliden and AssiDomän. Member of the Royal Swedish Academy of Engineering Sciences (IVA) and honorary doctorate from LTU.
CARINA SANDSTRÖM Employee Representative
46 • WIBAX
MANAGEMENT TEAM
JONAS WIKLUND CEO Wibax Group
DAVID WIKLUND MD Biofuels
ANNICA PETTERSSON Chief of HR
CAROLINE HÄGGSTRÖM Chief of QSE
FREDRIK NORDSTRÖM COO Industrial
URBAN HAUGEN COO WPC
KRISTOFFER ÖVERHEM CFO
MIKAEL KVIST MD Wibax OY
ANDREAS WIKLUND COO Production
HANS HENRIKSSON CPO
MAGNUS SUNDSTRÖM MD Logistics
production/graphic design: mawix art · photos: magnus sundström and others
HEAD OFFICE: Batterigatan 12, 941 47 Piteå · Tel switchboard +46 911 250 200 www.wibax.com