ANNUAL AND SUSTAINABILITY REPORT
2019
OUR BUSINESS IS GOOD CHEMISTRY BUSINESS IDEA Our business idea is to sell, purchase, process and distribute chemical products to primary industry throughout Europe.
STRATEGY Our knowledge and resources are primarily focused on liquid chemical products. We import directly from producers, for our own production of products tailored to customer needs, or to tanker terminals in central locations, using logistics solutions of our own to reach the end customer. Our strategy also includes implementing and optimising products together with the end customer.
CONTENTS CEO Statement .......................................................................................... 5 Sustainability Report.......................................................................... 7-26 - Sustainability Process .............................................................................. 10 - Environmental Sustainability = Financial Sustainability....................16 - Social Sustainability..................................................................................22 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 & Financial Statement Notes ...... 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 familyowned company
WIBAX LOCATIONS
TURNOVER IN 2019
1335 MSEK TANKERS
Piteå
Pietarsaari Jakobstad
Örnsköldsvik Härnösand
NORGE
1 week
Skellefteå
Vaasa
FINLAND
SVERIGE Gävle Skutskär
TOTAL CONTROL
Stockholm
Herre
Uddevalla
Wibax is Sweden’s only chemicals distributor with a vehicle fleet of its own.
Norrköping
> 365 000 m3
Helsingborg DANMARK
Malmö
Wibax’ total storage capacity
24 % women 76 % men
214
TERMINALS
Average no. of permanent employees, 2019
OFFICES
> 1 100 000 tons
> 268 000 tons The reduction in fossil CO2 achieved by Wibax customers in 2019, thanks to transitions from fossil fuel to bio oil.
The total volume of chemicals and bio oils managed each year
CONSTANT IMPROVEMENT ISO 9001 ISO 14001
+
=
34%
The ratio of renewable fuel usage by our tanker fleet in 2019
CEO STATEMENT Wibax left the 2010’s in a position of strength, with good growth and satisfactory results, wholly in line with our goals. We have continued to grow and now look back at our second year as a company with a turnover exceeding 1 billion SEK, reaching and exceeding the previous year’s record figures. I am proud to conclude that our competent staff has also grown, so much so that we are expanding our office facilities. We go the extra mile to create a great workplace, by offering large break spaces, creative office environments and gym facilities, amongst many other things. Investment for our staff will aways be important. Our different divisions have continued to develop, especially when it comes to green products and our competencies in that field. Our chemicals division is also growing, and we believe in a bright future for this product segment, both for trading and production of our own. We have added an additional terminal, in Gävle, to our total capacity, and we have more vehicles in our fleet, all enabling us to provide our customers with an even higher level of service. 2019 has also been shaped by new goals, perhaps most importantly, the development of a plan to reach said goals. This target-focused process, a major effort, means that we now have a strategy for development in the years leading up to 2025, and on which areas to focus. The plan has been developed with a great attention to detail by the organisation, and rests on a strong foundation. We now continue the work by communicating and implementing it in our management plan, so that we can all help develop the group in the right direction. I look forward with excitement – and I must confess, some degree of impatience – to seeing our future development.
Jonas Wiklund
WIBAX • 5
6 • WIBAX
SUSTAINABILITY REPORT
WIBAX • 7
PRODUCTS
PRODUCTION
SERVICING/MAINTENANCE
L
CUSTOMER STORAGE/LOGISTICS DEVELOPMENT/KNOWLEDGE
SUSTAINABILITY
Controlling the supply chain from producer to end customer – with the customer in focus
WIBAX’ success strategy is to control the supply chain from producer to end customer, from transport and storage to production, sales and customer care. In collaboration with our customers, we constantly develop new solutions, geared towards increased efficiency for our customers, improved total economy and minimal environmental impact.
8 • WIBAX
SUSTAINABILITY ACCORDING TO US
L SUSTAINABIL CIA ITY O S
TAINABILITY SUS L A NT
Through technological know-how and problem-solving in close collaboration with our customers, we generate greater benefits and more efficient industrial processes. This can, in turn, create growth opportunities and improve total economy for our customers, all while optimising the use of resources.
These principles are summarised in our core value – Good Chemistry. At Wibax, we want Good Chemistry to be the common thread in everything we do, both for our company and for the world around us. This report aims to describe our contribution to the goals of the UN Agenda 2030, and our work with Good Chemistry, from management to practical implementation.
ECONOMIC S US TA
Good chemistry is our way of summarising the values, knowledge and market role of Wibax, and highlighting the highest possible standards of safety, quality and environmental sustainability. Good chemistry means that we promise our customers and communities to always strive for sustainable development, optimal use of resources, minimal environmental impact, and to always make the best choices for the environment.
The guiding principles of our sustainability work are forward-thinking, participation, quality and customer focus.
EN V I R ON ME
Sustainability is a matter of always striving to create a sound, thriving organisation, whilst economising its resources to allow them to generate maximum possible value in the long term. We work to create a world where fundamental human rights are respected, and our needs can be met without infringing on the rights of others. We must also create economic develop-
ment without compromising environmental or social sustainability.
Y ILIT AB IN
For us at Wibax, sustainable enterprise means always working to create sustainable development, optimal use of resources and minimal environmental impact. This is important to fulfil the needs of owners, employees, customers and stakeholders, without jeopardising the ability of future generations to do the same.
Efficient logistics means fewer empty return trips, reduced fuel usage and a lower impact on the climate and the environment compared with the alternatives. Reliability, experience, a high level of service and knowledge, gives customers the best possible solution, in terms of environmental friendliness, a high level of safety and good total economy. Earth’s resources are finite, and all life on the planet depends on chemical resources. We who work with chemistry must strive to impact on nature and the climate as little as possible, whilst also optimising the use of resources. Smart application of high-tech knowledge will often meet both these needs, whilst also creating good total economy and sustainable development. That is what Good Chemistry means to us.
WIBAX • 9
OUR SUSTAINABILITY PROCESS Wibax works with target management by objectives to ensure constant development and continous improvement at all levels of our operations. Our target management process is based on internal and external analyses, to ensure that time and resources are to ensure that time and resources ar not spent on activities or areas that do not generate value, neither for the stakeholders or the organisation
itself. For us, sustainability is not a separate activity, but a common thread uniting all parts of our operations.
this connection with the help of SDG Compass. The goals identified are those which our operations can play an important part in fulfilling.
Sustainability work is generally divided into three dimensions; economic, social and environmental sustainability.
This report is designed to give the reader insight into our sustainability work, our work with target management, our operations, their inidividual activities, and results of our work over the past year.
Our sustainability work is connected to 11 of the goals of the UN Agenda 2030. We have developed
ENVIRONMENTAL SUSTAINABILITY means economising natural resources and implementing long-term environmental strategies.
SUSTAINABILITY GOALS At Wibax, we wish to work towards sustainable development, and for 2019 we had the following main goals for sustainability:
SOCIAL SUSTAINABILITY means working towards a world where fundamental human rights are respected, and needs are met without infringing upon the rights of others. ECONOMIC SUSTAINABILITY means having economic development without compromising environmental or social sustainability.
A REDUCTION IN FOSSIL CO2 /TRANSPORTED TON
SUSTAINABLE PURCHASES
KEY EVENTS THROUGHOUT THE YEAR 100% RENEWABLE ELECTRICITY
PRODUCTION EXPANSION
A new energy contract for all of the group’s operations in Sweden
Our production facilities were expanded to increase capacity and further improve the work environment
WIBAX REMODELLING
INCREASED LOAD CAPACITIES
Remodelling of the head office commenced and continued throughout the year
Two vehicles were remodeled to increase their load capacities by a total of 16 tons
MANAGEMENT SYSTEM
IMPROVEMENTS IN MALMÖ
Implementation of a new management system with integrated deviation management, for improved handling and accessibility
New bundings, loading docks and heating systems were completed in Malmö
LOGISTICS SUPPORT SYSTEM A new logistics support system and new methods for evaluation and planning of transport
ADDITIONAL 74 TON VEHICLES Our vehicle fleet was expanded with five new 74 ton vehicles
DOUBLE-SKIN CISTERN A double-skin cistern for sulfuric acid was completed in Norrköping
BIO OIL STORAGE CAPACITY Increased bio oil storage capacity in Malmö, Norrköping and Finland
VISION Stakeholders in primary industry must see Wibax as a natural choice amongst current suppliers. Skill, quality and attentiveness must define Wibax’ operations
KEY ACTIVITIES
GOOD CHEMISTRY IS OUR BUSINESS
FORWARD THINKING QUALITY IN EVERY STEP
SAFETY
EMPLOYEES
SUSTAINABILITY
GROWTH
BRAND
LOGISTICS
STRATEGIC GOALS
SUCCESS RESULTS
CUSTOMER FOCUS PARTICIPATION
MANAGEMENT BY OBJECTIVES Wibax’ model for management by objectives is based on our core values, which are meant to guide both our daily operations and our strategic management work. The tank at the centre of the management process rests on six focus
areas, all deemed equally important. Each area then contains one or more strategic objectives, designating our targets, and these lead up to a number of key activities which indicate in which direction we must move to reach the goals.
In order to foster participation and forward-thinking, we believe it’s important for the entire group to participate in this strategic work, so that every employee knows how they themselves can contribute.
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 under-
taken 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 • 11
MATERIALITY ANALYSIS Our materiality analysis is based on several different parameters: a stakeholder survey, an analysis of external factors and a self assessment. Our continuous stakeholder dialogue, maintained through customer interviews, daily meetings when chemicals are delivered, supplier evaluations, and our stakeholder survey, gives us insight into what our stakeholders’ expect and demand of us as a supplier. Stakeholder surveys are updated
and conducted every third year, thus, the analysis for 2019 is based on the 2017 customer survey. The customer survey has our customers grade various sustainability parameters from 1-9, 9 being the parameter most important for them to want continued cooperation with Wibax. Additional external factors (p. 1415) are considered, such as laws and regulations, global and national sustainability goals and in-
ternational guidelines on environmental care, human rights, working conditions and business ethics. Based on the expectations and demands of our stakeholders, as well as our analyses of external factors, we have performed a self assessment to identify the sustainbility aspects we believe that we can influence to the greatest possible extent. These are described in the figure below.
SUSTAINABILITY ASPECTS THAT OUR CUSTOMERS RANKED THE HIGHEST AND THAT WIBAX CAN INFLUENCE
CUSTOMERS AUTHORITIES
• Work with energy efficiency • Sustainable solutions and transportation OWNERS
SOCIETY
• Satisfied staff • Safe transport • Safe handling of chemicals
EMPLOYEES
SUPPLIERS
CERTIFICATIONS 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 assure the quality of its operations, whilst maintaining a clear focus on the environment, they are also a way to
12 • WIBAX
respond to demands from customers and suppliers.
sary due to a reported major deviation or material changes.
The Swedish Energy Agency has previously awarded a statement of sustainability to Wibax Biofuels AB and Wibax Logistics AB.
In spring of 2018, a review of the sustainability statement was conducted through an audit of the control system by an independent reviewer. Upon review, the Energy Agency found that the control system was adequate and that the sustainability statement remains valid.
Reviews of Swedish sustainability statements are conducted continuously at the request of the Energy Agency, or when deemed neces-
A TRUSTED SUPPLIER
PAPER & PULP
ENERGY - BIO OIL
ROAD
TRANSPORT
STORAGE
MINING
CHEMICAL INDUSTRY
PUBLIC SECTOR
PHARMACEUTICAL INDUSTRY
FOOD
More efficient processes Better total economy OTHER INDUSTRIES
REFINERY & PETRO– CHEMICAL INDUSTRY
STEEL & METAL
Minimal environmental impact
WIBAX • 13
ANALYSIS OF EXTERNAL FACTORS AND RISK MANAGEMENT ANALYSIS OF EXTERNAL FACTORS AND RISK MANAGEMENT Our analysis of external factors aims to collect data on and analyse events in the world around us and decide how to manage these. Wibax carries out annual SWOT analyses to identify strengths, weaknesses, opportunities and threats which may impact the company. Based on these analyses, we have identified a number of risks that are of considerable importance to our operations. All these risks are covered in our strategic management work, thus ensuring that we continously work to manage the risks identified.
S
W
O
T
Below you will find the primary risks to our operations that we have identified for 2019.
STRATEGIC RISKS
RISK MANAGEMENT
RISKS RELATED TO ENVIRONMENTAL PERMITS At all its locations, Wibax has operations which require permits under the Swedish Environmental Code. Limited permits and slow application processes impact the flexibility of storage and handling. Violations of applicable environmental law may lead to criminal charges and coercive action.
Compliance with environmental regulations is immensely important in Wibax’ operations. Without environmental permits, current operations cannot continue. Wibax tries to work proactively and implement long term plans so that permits match the needs of our operations, both in terms of scope and flexibility.
CUSTOMER DEPENDENCY Strong macroeconomic fluctuations and changes in customer requirements may increase the risk for a decline in sales. Warmer winters can lead to decreased sales of certain bio oils.
By maintaining close and long-term customer relations, technical collaborations, a flexible product portfolio and an extensive logistics system, Wibax is well prepared for any macroeconomic fluctuations. Additionally Wibax aims to offer customers a high level of product quality and delivery reliability, with the goal of being strongly competitive.
POLITICAL RISKS The implementation of a kilometre tax would have a considerable impact on our operations. Changes to tax legislation regarding sustainable choices may affect both the financial viability of renewable vehicle fuels, and the demand for bio oils. Business risks may arise from political decisions or changes to the legislation and regulations that apply in the various countries in which Wibax does business.
Our terminals are found in strategic locations, close to our customers, to minimise the need for road transport. Wibax actively monitors external factors to manage political risks and collaborates with both national and international industry organisations to deal with these risks.
RISKS RELATED TO THE PURCHASING VALUE CHAIN There is a risk of trading with suppliers who violate the requirements we place upon our suppliers, due to flaws in the current system for audit and control.
14 • WIBAX
In 2019, Wibax developed an updated supplier assessment methods. Assessments and audits will begin in 2020.
OPERATIVE RISKS
RISK MANAGEMENT
ACCIDENT AND HEALTH RISKS Wibax employees and contractors are sometimes subjected to hazardous situations that may place them at risk of an accident, or place their health at risk.
Wibax is working actively with health and safety issues, and there are clear procedures in place for when and how risk assessments must be conducted. All employees receive training on the products, materials and equipment relevant to their work, which reduces the risk of accidents. In 2019, a new deviation management system was implemented and procedures for deviation management and root cause investigations have been improved.
RISK OF ENVIRONMENTAL IMPACT DUE TO EMISSION OF CHEMICALS Accidental emission into air and water may negatively impact the local environment, thereby affecting public trust in Wibax and consequently our ability to continue operations.
With well-trained drivers and relevant equipment, the risk of traffic accidents and potential emission of chemicals is reduced. To prevent emission at depots, most of the cistern parks today have bunding, and plans are in place to install bunding at more terminals. Terminals where particularly hazardous chemicals are stored take priority. Terminals undergo continuous risk assessment and any identified potential emission points are addressed.
RISK OF SKILLS SUPPLY SHORTAGE Being able to retain existing employees and attract new talent with the right skill sets is an essential part of Wibax’ continued development.
Wibax aims to be the most attractive employer in the industry. Wibax has partnered with a process operator training programme and offers internships in order to build a relationship with potential future employees.
RISK OF SUPPLY CHAIN FAILURE Supply chain failures could affect our ability to supply our customers with products as contracted, which may both impact us financially and damage our brand.
We work with several suppliers of the same product in order to ensure that there are no supply shortages.
RISK OF RENEWABLE FUEL SHORTAGE Wibax had a target to use at least 50% renewable fuel in our tanker fleet in 2018, but suspected a negative impact from the reduction duty, and therefore abandoned the goal for 2019. The goal for 2020 has been changed to a more general one; a reduction in CO2 impact, which includes other measures in addition to the fuel mix.
Because of the reduction duty, availability of renewable fuels has decreased, as renewable fuels are now widely utilised as part of the fuel mix. Wibax monitors external factors, with regard to both fuel supply options and technological developments, to find other ways of minimising our fossil fuel impact.
WIBAX • 15
ENVIRONMENTAL SUSTAINABILITY = FINANCIAL SUSTAINABILITY Our daily lives are dependent upon chemical processes, and as a chemicals supplier, we feel that we have a great responsibility to minimise our environmental impact and optimise our use of resources, to ensure that life as we know it can continue for generations to come. Environmental sustainability is a fundamental part of our business strategy, where we, in addition to offering our customers options that are better for the environment, also tailor the products and services we offer to meet the needs of the market. Through process optimisation, smart logistics solutions with environmentally efficient transport and storage, more environmentally friendly products, conversion of combustion facilities from fossil fuel to bio oil, and bio oil sales, and many other actions, we actively help our customers reduce their fossil fuel footprint. This is closely connected to what financial sustainability means for us – always being flexible to meet customer needs, and to adapt quickly in an ever-changing world. When we focus on value-generating customer solutions based on customer needs and environmental requirements, we can work actively with adapting
16 • WIBAX
our operations to develop an up-to-date, sustainable product portfolio and logistics system.
ENVIRONMENTAL SUSTAINABILITY Wibax must engage in constant, active environmental efforts, based on our environmental policy. Everything we do is to be defined by good chemistry and we must always work to reduce our carbon footprint. This aspect of sustainability is an important part of our efforts, partly because we have a product portfolio that helps customers considerably reduce their fossil emissions, partly thanks to our logistics division, whose emissions into the atmosphere we can control.
FINANCIAL SUSTAINABILITY In order to meet our growth target and be a competitive market player, we need to develop our product portfolio and be a cost-efficient group. Another part of our work with financial sustainability is consistent focus on value-generating customer solutions where we adapt our operations, engage in flexible development of our product portfolio and tailor our logistics solutions to meet customer needs.
LOGISTICS WITH A FOCUS ON THE ENVIRONMENT Wibax has 9 maritime terminals and depots in strategic locations throughout Sweden, where we store our products as close to our customers as possible. These locations, coupled with good planning, combinations of various types of transport, storage and return flows, help create efficient logistics schemes with a low environmental impact. The goal of Wibax’ transport and logistics schemes is maximum quality with minimal environmental impact. Efficient use of resources is our way of reaching the goal to decrease our carbon footprint and minimise our use of energy. When it comes to logistics and transport, we continuously analyse and evalute the resources at our disposal, in the form of staff, fuel, vehicles and technical equipment, to maximise environmental usability. Our vehicle fleet was expanded in 2019, with five new 74 ton vehicles entering service. We have also remodeled two vehicles to increase their carrying capacity by 16 tons in total. Greater carrying capacity yields lower CO2 emissions per ton transported, as it leads to fewer journeys and greater utility.
In 2019, an additional five trucks with 74 tons of carrying capacity were added to our vehicle fleet.
Throughout the year, we have monitored the global market for new technology relating both to the electrification of vehicles, and alternative fuels. The goal of this work is to have at least two electric, heavy-duty vehicles by 2022. Availability of renewable fuels has declined since the introduction of the reduction duty, and this has affected the percentage of renewable fuel used in our logistics operations. We also work actively to implement railroad transport in our logistics offer, and we already offer a large number of container deliveries by rail. We have also continued to offer our customers shipments using renewable fuel, throughout 2019.
REDUCTION IN FOSSIL FUEL USE
Renewable fuel, % 50 40 30 20 10
27%
2014
Emissions /ton transported (kg CO2) 10 8 6
0
2016 2017 2018 2019 Wibax transport Swedish transport Forecast share Sweden, current trend
77,4
4 2 0
2014 2015 2016 2017 2018 2019
ECODRIVINGSCORE
WIBAX • 17
FAIR TRANSPORT The Swedish Association of Road Transport Companies promotes sound, sustainable development of the road transport industry. The organisation works with matters of transport and public policy that affect the road transport companies, with the goal of strengthening the competitiveness of Swedish road transport companies and improving their conditions
SOUND, RESPONSIBLE TRANSPORT Unfortunately, the transport industry is heavily affected by unfair competition, with dumped prices on an overestablished market. That is why we are making a stand for a safe, clean and responsible transport industry, by participating in Fair Transport. It means that we drive safely, use climate smart solutions and offer good working conditions. Our vehicles use new tyres and breathalysers, we follow the mandated periods of driving and rest, and we continuously train our drivers on issues of safety and environmental care.
FUEL EFFICIENT TRANSPORT We actively work to reduce our use of fuel by;
Wibax’ logistics maximise quality and minimise environmental impact
TRAINING HOURS/DRIVER
+
=
26
DRIVERS ON PERMANENT CONTRACTS
}85 TANKER TRUCKS
50 18 • WIBAX
• TRAINING our drivers to drive as efficiently as possible. This is done with the help of a new support system that evaluates the drivers’ driving style, offering concrete tips and ways to improve. As a way to further improve this training, a coach has been designated to train both new and existing drivers on matters of eco driving, vehicle maintenance and tyre policy. • OPTIMISING the rate of occupancy of the vehicle fleet, through continuous analysis of logistics flows and planning of return transport, as well as by maximising the carrying capacity. The bearing capacity of public roads has been increased and expansion of the Class 4 (BK4) road network continues. In 2019, we therefore not only acquired new vehicles with a 74 ton load capacity, but also upgraded a number of vehicles to support a greater load capacity. • A NEW SUPPORT SYSTEM and new operating procedures are in place to improve data collection, enabling us to evaluate and plan our transportation even better. • MAKING OPTIMAL USE OF our tyres, partly to make them last longer, but also to let them roll more smoothly. Our tyre policy specifies guidelines for tyre changes, retreading, regrooving and air pressure control. Regrooved tyres provide, on average, 25% more miles and a 25% reduction in rolling resistance, which translates to lower fuel consumption and consequently lower emissions.
FOSSIL FREE HEATING OF CISTERN STORAGE Wibax stores a range of products, some of which for various reasons require heated storage. In 2019, heating and circulation of cisterns accounted for more than two thirds of the total energy use of Wibax Group (excluding fuel consumption). The cisterns that are used for products in need of heating are insulated to minimise loss of heat. In order to further reduce our climate impact, we have made adjustments to our choice of energy. In the past, heating was done using fossil fuel or electricity, in the facilities where it was required. Over a three year period, these facilities have been converted to use bio oil instead. Now, bio oil is stored at three additional facilities, one of which has its cistern park heated using bio oil. Yet another facility is planned to undergo bio oil conversion in the near future.
CONVERSION AND HEATING
Fossil free heating of facilities and cisterns
In addition to storing our own chemicals, Wibax Group also offers rental storage capacity, meaning that customers can benefit from fossil free heating of their cistern storage in several locations throughout the country.
→
↓
=
FOSSIL FREE HEATING OF CUSTOMER FACILITIES Wibax Biofuels is a subsidiary responsible for sales of bio oil for combustion purposes, helping customers achieve CO2 neutral emissions. Part of our sales initiative involves motivating customers who currently heat their facilities using fuel oil, to convert them to use bio oil. Wibax Industrial has the skills needed to plan and execute conversion projects. Through them, the customer can rely on a single partner for conversion, bio oil purchases and environmentally
friendly transport. The fact that we own the entire logistics chain makes us unique in the business. In 2019, a number of conversions and projects to increase storage at our customers’ facilities were completed, and our project managers have helped customers both with administrative issues such as applications for the Klimatklivet climate subsidy, but also with matters of practical adaptation and remodelling. With the help of new, more modern equipment
and fuel-efficient burners, operating costs have decreased and production capacity has increased, resulting in a more environmentally friendly process. Based on 2019 bio oil sales, we have helped customers reduce their CO2 emissions by approx. 268 000 tons.1 1) The CO2 reduction is calculated based on the fuel’s fossil carbon content, with the difference being calculated against a 100% fossil fuel. The impact of fuel transport is included in the calculation.
TOTAL CO2 EMISSION REDUCTIONS
Based on bio oil sales figures1) 300 000 250 000 200 000 150 000 100 000 50 000 0 ton
2015 2016 2017 2018 2019 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. In 2019, we transitioned to 100% renewable energy for the entire group in Sweden, with the help of our local energy supplier, and a renewable energy contract was signed for the Jakobstad terminal as well. This resulted in the total share of renewable energy used by our operations rising to 85%. The remaining 15% is primarily fuel oil for heating of cisterns which are yet to be converted.
CARBON FOOTPRINT A summary of the group’s estimated/preliminary CO2 footprint in 2019 showed that the majority of emissions related to our main operations come from goods transport between terminals and customers. This is one the reasons why our main focus regarding greenhouse gas emissions will be to continue improving the efficiency of our road transport. Parts of this improvement work are described on pages 17-19. Through our continued work to transition to renewable energy, for both electricity and cistern heating, these items contribute a smaller share of total emissions than in previous years. In 2020, our goal is to perform a more extensive review of our emissions, in accordance with the Greenhouse Gas Protocol, to improve our work to reduce emissions and climate impact.
DISTRIBUTION OF TOTAL ENERGY CONSUMPTION FOR WIBAX GROUP 100% 80% 60% 40% 20% 0% 2016
2017
Green energy
2018
2019
Other energy
DISTRIBUTION OF THE GROUP’S CO2 EMISSIONS
Heating 7.9 % Wibax deliveries 74.9 % External deliveries 15.7 % Official travel 1.5 % Distr. heating & electricity 0.01 %
EMISSIONS INTO AIR, GROUND AND WATER The number of environmental deviations where there was a risk of emissions into the ground has decreased over the years. In 2019, approx. 20 deviations and incidents resulting in spillage, leakage or overflushing were reported. The extent of the emissions varied, but most were minor, local emissions inside mechanical barriers. In the events where emissions have occurred outside such barriers, cleanup has been performed
immediately upon detection. This means that the local emissions arising from deviations and incidents throughout the year have not reached the ground or the water. Root cause investigations are carried out, action plans are developed and action results are followed up whenever there is a deviation, to avoid and minimise the risk of recurrence, to the greatest possible extent.
WIBAX • 21
SOCIAL SUSTAINABILITY Wibax must be an attractive employer, and we must offer our employees a safe place to work. Through active sustainability efforts, we contribute to a better community, and become a more attractive supplier and employer.
ness ethics and anti-corruption efforts. We expect all suppliers contracted by Wibax to follow this Code of Conduct and support these 10 principles. Furthermore, these requirements shall also apply to subcontractors who fall under the scope of our suppliers’ influence.
Sustainable business is a key part of this, and through controlling our supply chain, we ensure quality and reliable deliveries without infringing on human rights. This is a matter of ensuring that Wibax’ business is ethically sound and does not have a negative impact on surrounding communities, as well as of safeguarding the well-being of our employees and their surrounding communities in matters of health and equal treatment.
Wibax’ 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.
Wibax’ work with social sustainability focuses on always working towards a fair, equal society based on the fundamental principle of equal worth of all people, in matters both small and large.
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 carried out.
We look to the communities closest to us, to see how we can contribute. Our employees play a central part in our sustainability work, as healthy, satisfied, wellmotivated staff with a strong sense of participation are key to the company’s success. Our aim is for Wibax to be an attractive employer where employees feel involved, important, motivated and safe, and a partner characterised by a high level of quality in all aspects.
In 2019, our chemicals suppliers participated in an updated self-assessment survey. A new, updated assessment plan was finished by the end of the year and our improvement work regarding audits continues to develop. In order to maximise the results of the activity, test audits have been planned for Q2 2020, based on the improvement work undertaken in 2019. The results of these test audits will be used to optimise future, planned audits.
SUSTAINABLE PURCHASING
CUSTOMER SATISFACTION
Wibax works actively to ensure that the suppliers whose services we use comply with laws, conventions and good business practices. As we are a distributor, efficient purchasing based on good, long-term supplier relations are of crucial importance. We have an extensive network of purchasing channels and our purchases are made from global producers. Wibax has about a hundred suppliers, throughout more than 10 different countries, with a majority within the EU. The purchases consist of raw materials, chemicals for distribution, transportation, storage as well as other goods and services.
At Wibax, the customer is in focus, and customer satisfaction is an integral part of our organisation.
In order to become a potential Wibax supplier, the supplier must comply with our Code of Conduct. Wibax’ CoC is based on the fundamental principles of the United Nations Global Compact, on issues such as human rights, labour law, the environment, busi-
22 • WIBAX
We believe that it is important to be flexible and attentive to the needs of our customers and therefore we engage in frequent dialogue with our customers to determine 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 feel that they have received what they expected, or more than that, from Wibax as a supplier. The evaluation tool is based on frequent customer surveys in the form of phone interviews where customers are asked to rate the performance of Wibax as a company on various issues. In 2019, 100 such interviews were held, and we are happy to report that we met our strategic goal.
WIBAX AND THE COMMUNITY SPONSORSHIPS Wibax wishes to be a positive force in the community, and are proud supporters of local initiatives in our home town of Piteå. These include associations, charities, education and research in our fields of interest. Our target groups are young people, local decision makers and customers. In 2019, Wibax continued to sponsor Wibax Piteå IBK, Piteå Elit, the Child Cancer Fund and Piteå IF Women’s Football, amongst others. A new sponsorship deal was made with Young Achievement Norrbotten, where Wibax helps support young entrepreneurs.
A NEW WIBAX TRAINEE PROGRAMME GEARED TOWARDS IMMIGRANTS We work to create an inclusive workplace, and diversity is key to development. As part of this work, we started Wibax Academy – good chemistry for more of us, which is a trainee programme initially geared
towards immigrants. The project will be carried out in collaboration with Piteå Council and Arbetsförmedlingen, the Swedish Public Employment Service, and allow twelve candidates to experience working at Wibax, under mentorship, in everything from finance and sales to logistics and transportation, in the spring of 2020.
ject, in May 2020, we hope to be able to offer some of the trainees temporary contracts over summer. We also hope that all participants, candidates, managers, supervisors and employees, get something out of the project. Furthermore, we hope that the project can be repeated, either in its current form or with a similar structure.
At Wibax, we want to contribute to the community. This is an initiative to keep employees in Piteå, whilst also taking social responsibility. As our company grows, we need skills in several different fields and we see many benefits to establishing a better contact with the target group. At the conclusion of the pro-
In December, we held a successful initial recruitment day. Candidates were given a presentation of the company, a tour of our facilities, and participated in quick interviews. Now, we look forward to the progress of the trainee programme, running from January to May, 2020.
students of the Industrial Engineering Programme.
Furthermore, we attended Logistics Summit North in Luleå, a day of seminars geared towards the logistics industry.
STUDENTS In 2019, Wibax offered internships for drivers at various locations, as well as for work in finance, marketing, purchasing and tech. We participated in the LARV Expo at Luleå University of Technology, a platform to facilitate contact between students and companies. We also participated at the Umeå University Alumni meeting for
Wibax has also participated in recruitment expos such as ”PS Saknar dig” and ”Hemlängtan” in Stockholm as well as ”Load-up North” in Umeå, with the goal of showing our presence and attracting future employees.
In 2019, we also had study visits from vocational schools, primary education guidance counsellors, ninth graders as well as a retiree association.
WIBAX • 23
EMPLOYEES ATTRACTIVE EMPLOYER WIBAX’ values are based on doing what we need to develop a shared, robust and sustainable culture that supports our operations and motivates our employees. Wibax wants to be a workplace where everyone feels a sense of togetherness, 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 make the best possible use of all our employees’ skills, thereby increasing efficiency and productivity. A sustainable business is built by committed employees who act responsibly to live up to the expectations and needs of our surrounding community, which is key in maintaining sustainable and value-generating business. Wibax will be an attractive employer and work actively with key activities focused on our employees to attract, retain, and develop a committed staff. Wibax’ compliance with collective agreements applicable to the industry, and the fact that our 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. We measure the attractivenesss of the company and the loyalty of our employees by asking the question: ”How likely are you to recommend Wibax as an employer, to a friend?”
Ambassadors 43 %
Passive 33 %
Critics 24 %
EMPLOYEE INDEX
Ambassadors
= Critics
NPS = 18
Net Promotor Score (Max: +100 Min: -100) (Benchmark = 9)
We exceed the benchmark number, 9, and are thus considered an attractive employer.
HEALTH PROGRAMME In order to promote health and workplace enjoyment, Wibax has an active health programme, through which we both offer subsidies for activities promoting healthy living, and organise activities for our employees, focused on healthy living and lifestyle choices. In 2019, our health programme included activities where employees had the opportunity to try various types of exercise and activity such as a health bingo, group workouts, a running school, a lecture on healthy diets, a summer activity challenge, a health challenge, yoga, and, at the end of the year, a health-themed advent calendar. Wibax offers an individual health subsidy of 2,000 SEK per year and employee. 44% of employees used all or part of their subsidy in 2019, with an average expenditure of 1,600 SEK per person.
24 • WIBAX
EMPLOYEES • Average number of employees 190 (vs 164 in 2018) • 24 % women • The average age of our employees is 43 years
MANAGERS The graph below shows the development of the ratio of women amongst Wibax managers.
RATIO OF WOMEN MANAGERS 30 20 10 0 %
2016
2017
2018
2019
DRIVERS The graph below shows the distrubution of men and women amongst drivers employed by Wibax, in locations where we have terminals.
2019 100 80 Women
60
Men
40 20 0 %
PITEÅ
SKELLEFTEÅ
Ö-VIK
HÄRNÖSAND SKUTSKÄR NORRKÖPING UDDEVALLA
Parental leave Both men and women have taken fewer hours of parental leave over the last two years.
47 %
53 %
The distribution of total hours of parental leave in 2019 shows that women have taken 53% and men 47 %.
43
Average age of our employees
Women Men WIBAX • 25
EQUAL TREATMENT
WORK ENVIRONMENT AND SAFETY CULTURE
Wibax shall have no incidents of discrimination, harassment or reprisals that are in any way associated with discrimination based on gender, gender nonconforming identity or expression, ethnicity, religion, disability, sexual orientation or age.
In 2019, we implemented new management and deviation management systems, partly for the purpose of improving actions taken as part of our systematic work environment management. In doing so, we are able to become more attentive to suggestions for improvement, and perhaps most importantly, risk observations, to keep reducing the risk of accidents over time.
The work must be conducted at all levels and we shall foster attitudes 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 our workplace safety plan.
In 2019, our target was to have 100 risk observations reported, and the result was 87 risk observations reported. We also use data from our employee survey to see if we have a well-functioning social and organisational work environment. Results show a good psychosocial work environment, and it has improved since the last survey.
PSYCHOSOCIAL WORK ENVIRONMENT INDEX (PWI) The psychosocial work environment index is used to evaluate the psychosocial work environment with the goal of detecting early warning signals for factors in the psychosocial work environment which may lead to ill health.
RISK OBSERVATIONS, target 100
13
74
WIBAX TOTAL
73 87
WIBAX TOTAL
EXTERNAL BENCHMARK
PWI BENCHMARK
Risk observations reported
Many areas function well Improvement is needed Most areas function well
LTIF TREND PAST 5 YEARS 12 10
LTIF (LOST TIME INJURY FREQUENCY)
8 6
In 2019, Wibax had 24 accidents reported,
4
4 of which resulted in lost time.
2 0 % 2015 26 • WIBAX
2016
2017
2018
2019
ANNUAL REPORT
WIBAX • 27
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 2019-01-01-2019-12-31.
MANAGEMENT REPORT FOR 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
WIBAX LOGISTICS AB
The Wibax Group’s core business is the sale, import, production and distribution of bio oils and chemicals with a particular focus on liquid products in bulk. The Group will continue to strengthen its market position within the scope of existing operations.
Wibax Logistics is a wholly owned subsidiary of Wibax AB, whose primary task is to fulfil the Group’s needs for road transport but also to carry out certain external logistics assignments. The company vehicles are of a very high standard and quality, and its staff are experienced and competent. The company offers some of the most comprehensive tanker transport solutions 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 STRUCTURE 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 on company-owned property in Piteå. The premises contain offices, production facilities, warehouses, workshops and cleaning facilities. The parent company is responsible for purchasing, production, storage, sales, administration, quality and environmental issues, as well as safety and security.
28 • WIBAX
WIBAX INDUSTRIAL AB Wibax Industrial is a wholly owned subsidiary of Wibax AB and supports Wibax’ other operations. Its main function is to add value to the goup’s sales through total solutions for 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
total solution for converting boilers from fossil fuels to biofuels and assists in construction, installation, commissioning, optimisation and evaluation. Additionally, the company acts as a mechanical and technical partner for Wibax production and terminals.
WIBAX BIOFUELS AB Wibax Biofuels AB is a wholly owned subsidiary of Wibax AB, providing bio oils, primarily for combustion purposes, as well as technical competencies for implementation and optimisation.
WIBAX PERFORMANCE CHEMICALS AB Wibax Performance Chemicals AB is a wholly owned subsidiary of Wibax AB. The company offers a wide range of specialist and functional chemicals and is also responsible for providing training and market support to the entire group. They form the group’s leading edge and support infrastructure with regard to new commercial products and technology. The development of new applications is a prioritised area, offering strong expansion opportunities for the group. The company also supports customers in implementation of products and equipment, for optimisation in their processes.
WIBAX OY Wibax OY is a Finnish wholly owned subsidiary of Wibax AB and is a sales company working primarily with products for the pulp and paper industry. Other areas of focus are found in the mining and metal industries as well as in energy production and road maintenance.
WIBAX AS Wibax AS is a Norwegian wholly owned subsidiary of Wibax AB. The company focuses on products for industrial water and process treatment, primarily for issues related to corrosion, deposits and microbiological control.
WIBAX APS Wibax ApS s a Danish wholly owned subsidiary of Wibax AB. The company focuses on products for industrial water and process treatment, primarily for issues related to corrosion, deposits and microbiological control.
WIBAX • 29
30 • WIBAX
GROUP OPERATIONS 2019 has been a year of continued growth, with our turnover exceeding last year’s record. As the group has grown, we have also seen the need for new skills and developed our organisation. In 2019, we hired, amongst others, a business lawyer, a logistics manager as well as an IT manager. We are still highly interested in Wibax’ total solutions concept for bio oils, including conversion and adaptation of facilities to enable combustion of bio oil, amongst other things. Naturally, we also believe in a bright future for the products of our chemical division, both in terms of trading and production of our own. Through the growth plan developed in 2019, we ensure that the entire group is moving in the same direction, working towards the shared goals set for 2025. We have an exciting year ahead, and in 2020, we look forward to moving into our new head office facilities.
INVESTMENTS In the past year, our head office has undergone expansion and remodelling, and is expected to be finished by summer 2020. Amongst other things, we have built 36 new offices, large staff spaces, a gym, a new, larger lab as well as a creative office environment. We have continued to invest in our terminals, to maintain a high standard and level of service. Significant investments have been made in the Malmö terminal, including in bunding and a new heating system, amongst other things. The Norrköping terminal has been expanded with a new cistern for sulfuric acid and we have invested in six new tanker trucks, five of which are 74 ton vehicles.
PRODUCTION 2019 has been an intense, exciting year. We started it off by adding a storage manager to our staff, and we also hired and trained three operators. All employees have received 5S training and we have started work with systematic orderliness in the workplace. Wibax’ construction of additional offices and break rooms is being done above our production facilities, and this has had a fairly significant impact on the production facility. Even so, we have been able to remain in full production throughout the entire year, thanks to good cooperation between all involved. We have continued to invest in products of our own production, to further increase our production capacity, and in spring, a third filter line was completed in our magnesium facility. We also focused on new products, which we have tested at our production facility.
MARKET In 2019, we saw strong demand for basic chemicals. Even though some industries, such as the steel industry, have experienced a macroeconomic downturn, this has not impacted Wibax in 2019. In our largest segment, paper and pulp, customers continued investing to reach volume increases, which has had a positive effect on Wibax. Throughout the year, we have succeeded in several strategically important projects where we offer our total solutions including products, storage and logistics solutions. We have also increased our presence in southern Sweden and see great opportunities for continued growth in the region. We work to increase the share of products of our own production, and in 2019 we conducted customer surveys to determine which products to invest in.
EXPECTED FUTURE DEVELOPMENT The demand for green products and products of our own production continues to grow, and we are immensely optimistic about the future, both in these areas and for our chemicals division. Our carefully designed strategic plan for 2025 means that we have a clear, structured plan for how to develop the group in the right direction. We plan for continued expansion of our logistics network, in order to offer our customers even more financially and environmentally sustainable storage and transport solutions. We have paid close attention to how the effects of the covid-19 outbreak may affect the future development of the group. We have concluded that its current impact on the group is limited. Future impact on the group is difficult to estimate today. Past experience tells us that Wibax Group has handled crises and macroeconomic downturns well, but every situation is unique. The group management team monitors both internal and external developments and is ready to act if negative effects are observed.
QUALITY, SAFETY & ENVIRONMENT Permit applications and communication with local authorities has formed a considerable and important part of our work in 2019, as in previous years. Throughout the year, the implementation of a new management system with intergrated deviation management has been in focus. Wibax continues to work actively with safety initiatives and in the autumn, we have improved procedures for deviation management in connection with implementation of the new system. Our Safety Manager continues to train our custom-
WIBAX • 31
ers in safe chemicals management and has also held refresher courses for our drivers. The company has carried out annual external audits for ISO 9001 and ISO 14001 and our QSE department has conducted internal audits of our entire operations. An additional quality and environment coordinator, experienced in auditing, has joined the department.
OPERATING PERMITS Wibax’ production and storage of chemicals requires permits. The Piteå production unit is a Grade A facility, permitted to produce and store chemicals. Our depots in Skellefteå, Örnsköldsvik, Härnösand, Skutskär, Norrköping, Uddevalla and Malmö are Grade B facilities, where we are permitted to store and handle chemicals. At our depot in Haraholmen, Piteå, we run two different operations requiring Grade C Permits. In Jakobstad, Finland, Wibax runs a storage operation under permission both from the ELY Center and TUKES. Three of our Swedish facilities are Seveso operations, and we currently run storage operations according to the lower of Seveso requirements at two of these. In Skelleftehamn, we have a permit covering higher Seveso requirements. Our permits are crucial for our ability to continue operations as normal.
WIBAX PERFORMANCE CHEMICALS AB Wibax Performance Chemicals is responsible for sales of speciality chemicals as well as for product development and market support for the entire group. The company distributes speciality chemicals in Sweden, Norway and Denmark and offers a wide range of speciality and performance chemicals. In 2019, there was primarily an increase in sales of water treatment products, dust binding products as well as products for petrochemical industry. In the field of water treatment, boiler water and wastewater products have seen the greatest increase. We continue to focus on products for industrial water and process treatment, as well as for defoaming and cleaning. We also work to develop new, commerical products of our own production.
32 • WIBAX
WIBAX BIOFUELS AB Wibax Biofuels has continued to experience strong growth in 2019. We have expanded storage capacity with new storage locations in Jakobstad, Finland, as well as in Malmö. There is strong demand for our products and we see that many of our customers have benefited from a strong economic climate, increasing their willingness to invest in conversion from fossil fuel to bio oil. The Klimatklivet subsidy was dropped from the 2019 state budget, which meant fewer organisations could apply for grants to cover green energy conversions.
WIBAX INDUSTRIAL AB Wibax Industrial offers total solutions where we convert boilers from fossil fuel to bio fuel, and help with preparatory studies, project development, construction, installation, commissioning, optimisation and evaluation. Over the past year, we have conducted a number of major conversions, installation works and mechanical maintenance work throughout the country. We focus especially on conversion assignments and we see a continued need for industries and district heating plants to replace fossil fuels with bio oils. There is major interest and many industries have objectives to reduce their climate footprint. We also offer total solutions for systems cleaning, repairs, as well as service and maintenance. Systems cleaning in the industry yields financial benefit for customers as mechanical work is reduced. We see a growing demand for this service.
WIBAX OY Wibax’ Finnish company is geared primarily towards the paper and pulp industry, also focusing on the mining and metal industry, as well as energy production and road maintenance. Work to expand operations continues and over the past years, actions have been taken to offer sustainable biofuels, thereby broadening the customer base. The upgrade of Wibax’ Jakobstad terminal means that, going forward, we can make better use of the group’s competencies in storage, logistics and customer service, thus yielding faster growth.
WIBAX LOGISTICS AB 2019 has been characterised by continued, major growth in our logistics company. Notable is the continued investment in the development of our terminals, to build a foundation for the group’s continued growth, in order to meet the 2025 target. Investments in vehicles have continued according to plan, and according to our ambition to have a modern, efficient vehicle fleet, offering a high level of safety and low environmental impact. A prominent part of this work has been the investment in new tanker trucks, to adapt the vehicle fleet to the new rules for increased total weight, a restructuring effort which will continue throughout 2020. With the help of active initiatives and a new support systems, our drivers have developed driving methods which reduce their environmental impact. Our position as one of Sweden’s most comprehensive bulk suppliers has been further strengthened by additional investment in our terminals for storage of liquid products. The terminals are important strategic investments, and play a fundamental part in the group reaching its growth targets. The most significant events of the year have been the work to adapt, develop and install bunding for the Malmö terminal, as well as the construction of a new double-skin cistern
for sulfuric acid at the Norrköping terminal. Other projects completed include adjustments for increased safety, new customers and maintenance work. Throughout the year, we have continued our work with container transport by rail. Our efforts to implement rail as an alternative mode of transport for Wibax Logistics, continue. In the past year, company management has been expanded, with a COO assuming overall responsibility for operative management of the road transport and terminal organisations, as well as an account manager, responsible for sales of logistics services. Our strength lies in our ability to offer a combination of transport and storage of liquid products, all with resources of our own. This is a business model we have developed over the years, and it contributes to our strong position in the market. It makes Wibax Logistics a unique company in the industry, distinguished by its high safety standards, its breadth, competencies, flexibility and high level of delivery reliability.
WIBAX • 33
FINANCIAL OVERVIEW
WIBAX GROUP Operating income – EBIT 1,600,000
90,000
1995-2019
80,000
1,400,000
70,000
1,200,000
60,000
1,000,000
50,000 800,000 40,000 600,000
30,000
400,000
20,000
200,000
10,000
0 2019
2018
2017
2016
2015
2014
2011 2011
2013
2010
2012
2009
2010
2012
2008
2009
2013
2007 2007
2008
2006
2005
2003
2004
2002
2001
2000
1999
1998
1997
1996
0 1995
kSEK
Operating income Earnings before interest and taxes (EBIT)
WIBAX GROUP Key ratios 45,0 40,0
1995-2019
35,0 30,0 25,0 20,0 15,0 10,0 5,0
Equity ratio Return on capital employed
34 • WIBAX
2019
2017
2018
2016
2015
2014
2006
2005
2004
2002
Results after financial items
2003
2001
2000
1999
1997
1998
1996
1995
0,0
kSEK
WIBAX AB Operating income – EBIT 700,000
50,000
2000-2019
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 2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2000
2001
0 kSEK
kSEK
Operating income Operating profit/loss (EBIT)
WIBAX LOGISTICS AB Operating income – EBIT 20,000
300,000
2000-2019
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
2019
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 Operating profit/loss (EBIT)
600,000
WIBAX BIOFUELS AB Operating income – EBIT 2010-2019
30,000
0 kSEK
2019
5,000
2018
100,000
2017
10,000
2016
200,000
2015
15,000
2014
300,000
2013
20,000
2012
400,000
2011
25,000
2010
500,000
Operating income Operating profit/loss (EBIT)
0 kSEK
WIBAX • 35
FINANCIAL OVERVIEW
MULTI-YEAR COMPARISON FOR THE GROUP, kSEK 2019 2018 2017 2016 2015 Operating income 1,334,779 1,174,643 847,234 769,963 709,427 EBITDA 112,286 113,683 74,142 77,531 70,574 EBIT 72,825 78,855 45,575 50,510 47,139 Profit/loss after financial items 66,444 72,657 39,121 44,681 39,256 Profit margin, % 5,2 6,5 4,9 6,1 5,7 Balance sheet total 834,282 748,638 677,711 534,064 469,879 Equity ratio, % 35,7 35,4 32,3 39,0 39,4 Return on capital employed, % 8,8 10,7 6,8 9,5 9,5 Average no. of employees 214 184 179 175 154
MULTI-YEAR COMPARISON FOR THE 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
2019 2018 2017 2016 2015 593,194 593,922 448,540 426,412 435,810 28,747 43,636 27,655 22,178 20,558 50,083 62,889 41,307 35,057 30,911 23,596 38,027 37,160 37,021 13,530 4,2 6,8 8,8 9,2 3,2 545,162 488,761 491,434 434,354 363,514 37,2 37,6 34,2 34,8 31,9 5,3 9,0 8,8 9,7 5,1 62 52 50 48 43
PROPOSAL FOR THE APPROPRIATION OF EARNINGS The Board and the CEO propose that the available earnings, 55 143 (KSEK), be appropriated as follows: Carried forward 55,143 TOTAL 55,143 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
Not 2019 2018 2019 2018 OPERATING INCOME Net sales 1 1,275,732 1,123,614 556,908 562,321 Capitalised work for own account 3,574 3,105 Other operating income 2 55,473 47,924 36,286 31,601 1,334,779 1,174,643 593,194 593,922 OPERATING EXPENSES Raw materials and consumables -990,556 -854,031 -451,755 -454,522 Other external costs 3,4 -62,534 -60,698 -37,754 -31,797 Personnel expenses 5 -153,545 -128,523 -46,865 -37,656 Depreciation of tangible and intangible fixed assets 6 -39,461 -34,828 -21,336 -19,253 Other operating expenses 7 -15,858 -17,708 -6,737 -7,058 Operating profit/loss 8 72,825 78,855 28,747 43,636 RESULTS FROM FINANCIAL ITEMS Dividends from associates Interest received 9 Interest paid and similar items 10 Results after financial items
5 897 -7,283 66,444
6 1,207 -7,411 72,657
377 -5,528 23,596
448 -6,057 38,027
Appropriations 11 Profit before tax 66,444 72,657
-634 22,962
-31,410 6,617
Tax on the result for the year 12 -14,404 -16,299 Result for the year 52,040 56,358
-5,077 17,885
-1,541 5,076
WIBAX • 37
BALANCE SHEET
GROUP
2019-12-31
Not e
PARENT COMPANY 2018-12-31
2019-12-31 2018-12-31
ASSETS FIXED ASSETS INTANGIBLE ASSETS Software expenses Concessions, patents, licences, trademarks and similar rights Goodwill Advances, intangible fixed assets
13
1,975
2,935
1,480
2,526
14 15 16
- - 126 2,101
190 50 111 3,286
1,480
2,526
TANGIBLE FIXED ASSETS Land and buildings 17 77,153 78,733 77,153 78,733 Plant and machinery 18 298,608 284,765 245,542 235,741 Equipment, tools, fixtures and fittings 19 42,967 37 3,562 1,407 Fixed assets under construction 20 63,387 5,414 56,471 4,856 482,115 406,579 382,728 320,737 FINANCIAL ASSETS Investments in equity securities 21 100 100 100 100 Shares in group companies 22 14,945 14,945 14,945 14,945 Total fixed assets
484,316
409,965
399,153
338,208
CURRENT ASSETS STOCK ETC. Raw materials and consumables 52,988 43,241 52,112 42,486 Finished goods and goods for resale 92,253 46,283 Work in progress 38 218 Advance payments to suppliers 225 225 145,504 89,967 52,112 42,486 CURRENT RECEIVABLES Accounts receivable 183,423 222,641 86,014 99,851 Receivables from group companies - 2,671 Tax receivables - 32 889 4,368 Other receivables 111 892 - 4 Prepaid expenses and accrued income 23 20,928 13,570 6,994 1,173 204,462 237,135 93,897 108,067 24
-
11,571
Total current assets
349,966
338,673
146,009
150,553
TOTAL ASSETS
834,282
748,638
545,162
488,761
Cash and bank balances
38 • WIBAX
Note
GROUP 2019-12-31
PARENT COMPANY 2018-12-31
2019-12-31 2018-12-31
EQUITY AND LIABILITIES
EQUITY 25 Share capital (12,000 shares) 1,200 1,200 1,200 Other equity including the profit for the year 296,995 264,076 55,383 Total equity 298,195 265,276 56,583
58,698
UNTAXED RESERVES 26 Accumulated depreciation in excess of plan 154,416 Tax allocation reserves 31,553 185,969
133,696 26,490 160,186
PROVISIONS Provisions for deferred tax 27
54,033 54,033
48,951 48,951
1,954 1,954
1,200 57,498
1,849 1,849
NON-CURRENT LIABILITIES Bank overdraft facilities 28 7,737 - 45,794 48,446 Other liabilities to credit institutions 29 193,373 173,847 142,378 125,619 Other non-current liabilities 28 25,000 226,110 173,847 142,378 125,619 CURRENT LIABILITIES Liabilities to credit institutions 29 44,107 31,045 30,373 Advances from customers 285 Accounts payable 142,554 157,364 59,127 Current tax liabilities 5,783 Liabilities to group companies 9,448 Other current liabilities 22,838 34,822 5,382 Accrued expenses and deferred income 30 40,377 37,333 8,154 158,278
9,789 8,260 142,409
TOTAL EQUITY AND LIABILITIES
488,761
834,282
748,638
545,162
24,460 51,454
WIBAX • 39
CASH FLOW STATEMENT
GROUP
2019-12-31
PARENT COMPANY 2018-12-31
2019-12-31 2018-12-31
OPERATING ACTIVITIES EBIT 72,825 78,855 28,747 43,636 Adjustment for items not included in the cash flow, etc. 40,200 34,637 22,234 19,183 Interest received 902 1,207 377 448 Interest paid -7,283 -7,411 -5,528 -6,057 Tax paid -7,995 -8,427 -4,973 -1,555 Cash flow from operating activities before 98,649 98,861 40,857 55,655 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
-55,537 32,673 -4,620 71,165
33,670 -67,936 76,849 141,444
-9,626 14,170 18,521 63,922
22,531 -9,291 -545 68,350
INVESTMENT ACTIVITIES Acquisition of subsidiary Acquisition of intangible fixed assets -260 -1,470 Acquisition of tangible fixed assets -116,208 -58,164 Sale of tangible fixed assets 1,469 169 Cash flow from investment activities -114,999 -59,465
- - -83,179 - -83,179
-103 -1,324 -28,492 169 -29,750
16,759
-5,210
-2,652 -20,000 25,150 19,257
-18,440 -10,000 -4,950 -38,600
0 0 0
0 0 0
FINANCING ACTIVITIES Other liabilities to credit institutions Borrowings and amortisations (net) 44,526 5,081 Bank overdraft facilities 7,737 -65,489 Dividends paid -20,000 -10,000 Group contributions received/paid Cash flow from financing activities 32,263 -70,408 Cash flow for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at year-end
40 • WIBAX
-11,571 11,571 0
11,571 0 11,571
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 Assets, provisions and liabilities have been entered at historical cost, unless otherwise stated below.
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. INVENTORY The inventory is stated at the lowest acquisition value according to the first in- first out- principle (FIFO) or fair value respectively. Thus, obsolescence risk has been taken into consideration. RECEIVABLES Receivables are stated at the lower of the nominal value and the amount at which they are expected to be received.
DEFINITION OF KEY RATIOS Return on capital employed Profit/loss after financial items plus interest expenses as a percentage of the balance sheet total.
RECEIVABLES AND LIABILITIES IN FOREIGN CURRENCY Receivables and liabilities in foreign currency were translated at the rate on the balance sheet date.
Equity ratio Equity and untaxed reserves less deductions for deferred tax (21.4%) in relation to the balance sheet total.
CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash and bank balance.
LEASING The Swedish Accounting Standards Board general guidelines on accounting for leases apply.
CONSOLIDATED ACCOUNTS Subsidiary companies are companies in which the parent company directly or indirectly holds more than 50% of the votes, or otherwise has a controlling influence over its operative and financial management. Accounting for subsidiaries is normally based on the acquisition accounting method. This method means that the acquisition of a subsidiary company is viewed as a transaction whereby the parent company indirectly acquires the subsidiary’s assets and assumes its debts. From the moment of acquisition, the acquired company’s revenues and costs, identifiable assets and debts, as well as any goodwill or negative goodwill, is included in the consolidated accounts.
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
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, whereby 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 which apply 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
CASH FLOW ANALYSIS The cash flow analysis is made according to the indirect method. The reported cash flow only includes transactions that have involved incoming or outgoing payments. Cash and cash equivalents also include disposable deposits with banks and other financial institutions as well as short term investments listed on a public market, with a maturity date less than three months from the date of acquisition. REMUNERATION 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 estimates, assessments and assumptions by management, 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 2019 2018 GROUP Net sales 1,275,732 1,123,614 - Of which transport allowance 23,109 16,812 PARENT COMPANY Net sales - Of which transport allowance
556,908 23,109
562,321 16,812
NOTE 2 OTHER OPERATING INCOME GROUP Exchange gains Rental income Other Total
2019 2018 16,297 36,889 2,287 55,473
17,085 30,066 773 47,924
PARENT COMPANY Exchange gains Rental income Other Total
6,148 29,668 469 36,285
6,879 24,499 223 31,601
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
2019 2018
653 9 8 670
419 18 111 548
294 8 8 310
178 18 14 210
NOTE 4 LEASING AGREEMENTS 2019 2018 PARENT COMPANY Assets held through operating leases For the year, the company’s costs for leasing amounted to 813 743 Fees due - within one year 936 495 - later than in one year but within five years 1,665 413
WIBAX • 43
NOTE 5 EMPLOYEES AND PERSONNEL EXPENSES AVERAGE NUMBER OF EMPLOYEES PARENT COMPANY Male Female Total in PARENT COMPANY
2019 2018
33 29 62
26 26 52
123 21
110 16
FINLAND Male Female
4 1
2 1
NORWAY Male Female
1 -
1 -
2 - 152 214
2 132 184
Percentage women as %
Percentage women as %
12.5 21
22 18
SUBSIDIARIES SWEDEN Male Female
DENMARK Male Female Total in subsidiaries Group total GENDER BREAKDOWN IN MANAGEMENT PARENT COMPANY Board of Directors & CEO Other senior executives
SALARIES, OTHER REMUNERATIONS AND SOCIAL INSURANCE CONTRIBUTIONS PARENT COMPANY Board of Directors & CEO Other employees Total, 1) Social costs (of which pension costs) 2)
2,434 26,223 28,657 13,482 4,477
2,381 22,579 24,960 11,426 2,943
SUBSIDIARIES Board of Directors & CEO Other employees Total Social costs (of which pension costs)
3,835 70,534 74,369 30,431 6,958
3,348 57,014 60,362 24,325 5,036
GROUP Board of Directors & CEO Other employees Total Social costs (of which pension costs) 3)
6,269 96,757 103,026 43,913 11,435
5,729 79,593 85,322 35,751 7,979
1) Personnel costs have been reduced with the amount received in state aid 0 (0). 2) The parent company’s pensions costs include 538 (529) for the Board of Directors and the CEO concerning (2) people. 3) The group’s pension costs include 754 (698) for the Board of Directors and the CEO, concerning 3 (3) people. There are no material terms concerning severance payments or similar arrangements for board members or other members of the respective senior management teams.
44 • WIBAX
NOTE 6 DEPRECIATION OF TANGIBLE AND INTANGIBLE FIXED ASSETS GROUP Intangible Building Machinery Plant and equipment PARENT COMPANY Intangible Building Machinery Plant and equipment Total
2019 2018 1,444 1,579 24,210 12,229 39,462
1,335 1,579 21,392 10,522 34,828
1,046 1,579 17,992 719 21,336
966 1,579 16,101 607 19,253
NOTE 7 OTHER OPERATING EXPENSES GROUP Exchange losses Other Total
2019 2018 14,846 1,012 15,858
17,351 357 17,708
PARENT COMPANY Exchange losses Other Total
5,840 898 6,738
7,058 7,058
NOTE 8 PURCHASES AND SALES BETWEEN GROUP COMPANIES GROUP Parent company sales concerning group companies Parent company purchases concerning group companies
2019 2018 71,727 89,405
73,392 75,003
NOTE 9 OTHER INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS 2019 2018 GROUP Interest income 897 1,207 Exchange rate differences -9 Other 9 Total 897 1,207 PARENT COMPANY Interest income Total
377 377
448 448
NOTE 10 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS GROUP Interest expenses OTHER Total
2019 2018 -6,602 -682 -7,284
-7,116 -295 -7,411
PARENT COMPANY Interest expenses Other Total
-4,898 -630 -5,528
-5,798 -259 -6,057
WIBAX • 45
NOTE 11 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
2019 2018 28,150 -3,000 -20,720 -7,700 2,636 -634
10,700 -15,650 -27,815 -2,311 3,666 -31 410
NOTE 12 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 Effective tax rate 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 21,4 % (22%) TAX EFFECT OF: -Other non-deductible costs/non-taxable revenue Recognised effective tax Effective tax rate
2019 2018 -14,404 -6,409
-16,299 -7,910
66,444 -14,219
72,657 -15,985
-185 -14,404
-314 -16,299
21,7%
22,4%
-5,077 -104
-1 541 0
22,963 -4 914
6,617 -1,456
-163 -5,077
-85 -1,541
22,1%
23,3%
NOTE 13 CAPITALISED EXPENSES FOR DEVELOPMENT AND SIMILAR WORK GROUP 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
2019 2018
6,495 245 6,740
5,024 1,471 6,495
-3,560 -1,204 -4,764 1,976
-2,465 -1,095 -3,560 2,935
PARENT COMPANY Accumulated acquisition cost: 5,843 -At the beginning of the year 5,843 Scheduled accumulated depreciation: -At the beginning of the year -3,317 -Scheduled depreciation -1,046 -4,363 Recorded value at year-end 1,480
4,518 1,325 5,843 -2,351 -966 -3,317 2,526
NOTE 14 CONCESSIONS, PATENTS, LICENCES, TRADEMARKS GROUP Accumulated acquisition cost: -At the beginning of the year
46 • WIBAX
2019 2018
825 825
825 825
Scheduled accumulated depreciation: -At the beginning of the year -Scheduled depreciation Recorded value at year-end
-635 -190 -825 -
-444 -191 -635 190
NOTE 15 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
2019 2018
809 809
809 809
-759 -50 -809 -
-709 -50 -759 50
NOTE 16 ADVANCES RELATED TO INTANGIBLE FIXED ASSETS Group Parent company At the beginning of the year 111 New acquisitions 15 Recorded value at year-end 126 -
NOTE 17 LAND AND BUILDINGS 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 PARENT COMPANY 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
2019 2018
97,886 97,886
97,886 97,886
-19,153 -1,579 -20,732 77,154
-17,574 -1,579 -19,153 78,733
97,886 97,886
97,886 97,886
-19,153 -1,579 -20,732 77,154
-17,574 -1,579 -19,153 78,733
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 -Impairment -Scheduled depreciation Recorded value at year-end
2019 2018
426,993 12,320 -7,480 28,613 460,446
344,222 18,646 -2,258 66,383 426,993
-142,228 4,600 -1,115 -23,095 -161,838 298,608
-122,241 1,327 -21,314 -142,228 284,765
WIBAX • 47
PARENT COMPANY Accumulated acquisition cost: -At the beginning of the year -New acquisitions -Divestments and retirements -Reclassifications
336,660 222 -1,258 28,613 364,237
Scheduled accumulated depreciation: -At the beginning of the year -Divestments and retirements -Impairment -Scheduled depreciation Recorded value at year-end
-100,919 216 -1,115 -16,877 -118,695 245,542
268,939 1,338 66,383 336,660
-84,818
-16,101 -100,919 235,741
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 investments -Divestments and retirements -Reclassifications Scheduled accumulated depreciation: -At the beginning of the year -Divestments and retirements -Scheduled depreciation Recorded value at year-end
2019 2018
71,784 18,642 -9,968 1,772 82,230
60,998 16,387 -5,860 259 71,784
-34,117 7,084 -12,230 -39,263 42,967
-27,968 4,452 -10,601 -34,117 37,667
8,158 1,239 -728 1,772 10,441
7,287 745 -133 259 8,158
-6,751 590 -719 -6,880 3,561
-6,176 33 -608 -6,751 1,407
NOTE 20 NEW CONSTRUCTIONS IN PROGRESS GROUP At the beginning of the year Reclassifications New acquisitions Recorded value at year-end
2019 2018 5,414 -30,385 88,358 63,387
46,301 -67,297 26,410 5,414
PARENT COMPANY At the beginning of the year Reclassifications New acquisitions Recorded value at year-end
4,856 -30,385 82,000 56,471
45,088 -66,642 26,410 4,856
NOTE 21 INVESTMENTS IN EQUITY SECURITIES Accumulated acquisition cost: -At the beginning of the year Recorded value at year-end
48 • WIBAX
2019 2018 100 100
100 100
NOTE 22 SHARES IN GROUP COMPANIES 2019 2018 Accumulated acquisition cost: -At the beginning of the year 14,945 14,842 -Purchases 103 Recorded value at year-end 14,945 14,945 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 Subsidiary / Corporate ID no. / HQ / No. of shares Equity Year’s profit/loss in% value Wibax Logistics AB, 556375-5080, Piteå, 2 000 18,052 10,229 100 220 Wibax utv AB, 556499-9257, Piteå, 1 000 120 - 100 143 Wibax Perf. Chem. AB, 556547-9705, Piteå, 1 000 1,536 94 100 228 Wibax Industrial AB, 556346-1747, Piteå, 1 000 1,894 86 100 104 Wibax Biofuels AB, 556729-0894, Piteå, 1 000 39,970 129 100 11,274 Wibax OY, 2546247-1, Kotka (FIN), 1 000 2,933 582 100 2,644 Wibax Log. OY, 2957318-7, Jakobstad (FIN), 1 000 137 32 100 103 Wibax AS, 913456300, Skien (NOR), 100 310 30 100 109 Wibax ApS, 35842489, Karlslunde (DNK), 1 000 357 37 100 120 100 14,945
NOTE 23 PREPAID EXPENSES AND ACCRUED INCOME GROUP Insurance premiums Customer/supplier prepayments Other items Total
179 88 20,660 20,927
13,565 13,570
PARENT COMPANY Other items Total
6,994 6,994
1,173 1,173
2019 2018 5
NOTE 24 CASH AND BANK BALANCES
2019 2018
Balances available at banks and other credit institutions Total 0
11,571 11,571
NOTE 25 EQUITY
Share capital Share capital consists of 12 000 shares with a 100 SEK quota value
NOTE 26 UNTAXED RESERVES
2019 2018
Accumulated depreciation in excess of schedule: 154,416 Tax allocation reserves: -Reserved in tax year 2013 -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 -Reserved in tax year 2019 7,700 Total 185,970
133,696 2,636 2,368 9,158 8,579 1,438 2,311 160,186
WIBAX • 49
NOTE 27 DEFERRED TAX LIABILITIES Deferred tax liabilities
2019 2018
GROUP Buildings and land Untaxed reserves Total
1,954 52,079 54,033
1,849 47,102 48,951
PARENT COMPANY Buildings and land Total
1,954 1,954
1,849 1,849
NOTE 28 CREDIT GRANTED
Bank overdraft facilities Granted amount on bank overdraft facilities for the group is MSEK 130 (MSEK 130) and for the parent company MSEK 130 (MSEK 130).
NOTE 29 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
2019 2018 44,107 198,916 19,458 262,481
31,045 146,068 27,779 204,892
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
30,373 122,920 19,458 172,751
24,460 97,840 27,779 150,079
NOTE 30 ACCRUED EXPENSES AND PREPAID INCOME GROUP Liabilities related to personnel Other items Total
2019 2018 23,649 16,728 40,377
21,440 15,893 37,333
PARENT COMPANY Liabilities related to personnel Other items Total
6,314 1,840 8,154
5,765 2,495 8,260
NOTE 31 PROPOSED APPROPRIATION OF THE COMPANY’S PROFIT OR LOSS
The Board and the CEO propose that the available earnings, 55,143 (KSEK), be appropriated as follows: Amount Carried forward 55,143 TOTAL 55,143
NOTE 32 PLEDGED ASSETS GROUP Property mortgages Floating charges Assets with retention of title Total
50 • WIBAX
2019 2018 111,940 224,057 77,144 413,141
101,940 204,057 62,749 368,746
PARENT COMPANY Property mortgages Floating charges Assets with retention of title Total
111,940 165,512 37 277,489
101,940 145,512 34 247,486
NOTE 33 CONTINGENT LIABILITIES GROUP Contingent liabilities Contingent liability Norway
2019 2018
PARENT COMPANY Contingent liabilities NOTE 34 NUMBER OF SHARES PARENT COMPANY Number of shares Quota value (SEK)
1,362
1,362
None
None
2019 2018 12,000 100
12,000 100
NOTE 35, CASH FLOW ANALYSIS – ADJUSTMENTS FOR ITEMS NOT INCLUDED IN THE CASH FLOW 2019 2018 GROUP Depreciation 39,461 34,828 Capital results 739 -279 Translation differences, etc. 88 Total 40,200 34,637 PARENT COMPANY Depreciation Capital result Total
21,336 898 22,234
19,253 -70 19,183
Piteå 2020-05-26
Anders Snell Chairman of the Board
Rolf Back, Member of the Board
Andreas Wiklund, Member of the Board
Bo Wikund, Member of the Board
Stina Blombäck, Member of the Board
Lars-Erik Aaro, Member of the Board
David Wiklund, Styrelseledamot
Jonas Wiklund Chief Executive Officer
My audit report was delivered on 2020-06-08
Magnus Holmgren Chartered 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 We have audited the annual accounts and consolidated accounts of Wibax AB for the financial year 2019·01·01 · 2019·12·31. The company’s annual accounts and consolidated accounts are included on pages 27-55 of this document. In our 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 2019 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. We 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 We have conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under these standards are further described in the Auditor’s responsibilities section. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Information not pertaining to the annual accounts This document also contains information not pertaining to the annual accounts, on pages 3-26. The Board of Directors and the CEO are responsible for this information. Our statement regarding the annual accounts does not consider this information and we make no statements regarding the validity of this additional information. During our audit of the annual accounts, we are required 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, we also take into account other information that we have obtained during our audit process and assess whether this additional information appears to contain any material error. If we, based on the review that we have performed pertaining to this information, come to the conclusion that this additional information contains any material error, we are obligated to report it. We have nothing to report on this matter. Responsibilities of the Board of Directors and the CEO 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 nec-
52 • WIBAX
essary 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. However, the going concern basis of accounting is 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 Our 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 our 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, we exercise professional judgement and maintain professional scepticism throughout the audit. We 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 our 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 overriding of internal control. • Obtain an understanding of the company’s internal control relevant to our 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. We 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 we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts.
Our conclusions are based on the audit evidence obtained up to the date of our 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. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified. REPORT ON OTHER STATUTORY AND REGULATORY REQUIREMENTS Opinions In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Chief Executive Officer of Wibax AB for the financial year 2019-01-01 – 2019-12-31 and the proposed appropriations of the company’s profit or loss. We 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 We have carried out the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the section “Auditor’s responsibilities”. We are independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the CEO 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 Our objective concerning the audit of the administration, and thereby our 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. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our 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, we 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 our professional judgement with a starting point in risk and materiality. This means that we 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. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion concerning the Board of Directors’ proposed appropriations of the company’s profit or loss, we 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 CEO are responsible for the sustainability report on pages 8-26 and for ensuring its preparation in accordance with the Annual Accounts Act. We have conducted our review in accordance with the FAR recommendation RevR 12 Auditor’s Opinion on the Statutory Sustainability Report. This means that our 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. We believe that this review provides sufficient basis for our opinion. A sustainability report has been prepared. Piteå 8 June 2020 Ernst & Young AB
Magnus Holmgren Chartered accountant
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BOARD OF DIRECTORS FOR WIBAX GROUP
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BO WIKLUND Board member Engineer Founder and owner. Holds 55 % of WIBAX Group shares.
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: Member of the Board of ÅF, Executive member of the ÅForsk Foundation Previous employment: Senior Vice President BillerudKorsnäs, Senior Vice President Assi Domän, CEO Grycksbo Finpappersbruk, CEO Norrsundet Bruks AB
JONAS WIKLUND Member of the board Holds 15 % of WIBAX Group shares.
STINA BLOMBÄCK Member of the board 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 employment: Sustainability and Energy Director BillerudKorsnäs AB, CEO Billerud Karlsborg AB.
DAVID WIKLUND Member of the board Holds 15 % of WIBAX Group shares.
ROLF BACK Member 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 Member of the board Holds 15 % of WIBAX Group shares.
LARS-ERIC AARO Member of the Board since 2016. Mining Engineer (M.Sc.) from Luleå University of Technology. Employment history: Independent industrial advisor and member/chairman of eight different boards in total. Previously worked as CEO and Group CEO of LKAB, Division Manager at Boliden, and in various senior positions at what is now Billerud and Epiroc Secoroc. Member of the Royal Academy of Engineering Sciences and recipient of an honorary doctorate from LTU (Ph. D. h.c.).
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
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OUR BUSINESS IS GOOD CHEMISTRY HEAD OFFICE: Batterigatan 12, 941 47 Piteå · Phone switchboard +46(0)911-250 200 www.wibax.com
