VBG GROUP INTERIM REPORT JANUARY–MARCH 2019 · which we are active. We make a difference by...

VBG GROUPINTERIM REPORTJANUARY–MARCH 2019

13.7%Operating margin for the first quarter

was 13.7% (12.9).

SEK 990 MConsolidated sales increased to SEK

989.6 M (817.7) in the first quarter.

VBG GROUP INTERIM REPORT JANUARY–MARCH 2019

1

• Consolidated sales increased by 21.0% to SEK 989.6 M (817.7).

• Operating profit rose to SEK 135.5 M (105.2).

• Operating margin increased to 13.7% (12.9).

• Profit after financial items increased to SEK 121.7 M (85.6).

• Restating in accordance with IFRS 16 had a positive impact on operating profit of SEK 0.4 M and a negative impact on profit after tax of SEK 1.2 M. The equity/assets ratio decreased 2.2 percentage points and the balance sheet total increased by SEK 166.8 M.

INTERIM REPORTJANUARY–MARCH 2019

KEY FIGURES

Group, SEK M Q1 2019 Q1 2018 Full-year 2018

Net sales 989.6 817.7 3,492.4

Operating profit before depreciation/amortization (EBITDA) 163.0 124.4 497.4

Operating profit before amortization (EBITA) 143.6 113.0 449.3

Operating profit (EBIT) 135.5 105.2 417.6

Operating profit after financial items (EBT) 121.7 85.6 373.1

Profit after tax 89.0 63.5 273.0

Earnings per share, SEK 3.56 2.54 10.92

Cash flow from operating activities 100.1 73.0 253.6

ROE (cumulative), % 15.6 12.3 12.8

ROCE (cumulative), % 15.7 13.5 13.2

Equity/assets ratio, % 54.2 54.1 56.7

Interest-bearing net debt/EBITDA 1.40 1.60 1.30

Average number of employees 1,635 1,485 1,561

Average number of shares during the period (‘000) 25,004 25,004 25,004

Number of shares outstanding (‘000) 25,004 25,004 25,004


2

1,661 EMPLOYEES

31WHOLLY OWNED

COMPANIES

18COUNTRIES

THIS IS THE VBG GROUP

VBG Group AB (publ), domiciled in Vänersborg, is the Parent

Company of an international industrial Group with wholly owned

companies in the USA, Canada, India, Brazil, China, Australia,

South Africa and nine countries in Europe. The Group’s opera-

tions are divided into four divisions: VBG Truck Equipment, Edscha

Trailer Systems, Mobile Climate Control and Ringfeder Power

Transmission — with products that are marketed under strong,

well-known brands. VBG Group AB’s Series B share was intro-

duced on the stock exchange in 1987 and is listed today on the

Nasdaq Stockholm Mid Cap list.

Vision

We are number one or two globally in the industrial niches in

which we are active. We make a difference by creating the

products and services of the future.

Business concept

The VBG Group will, within selected product and market seg-

ments, acquire, own and develop industrial companies in busi-

ness-to-business commerce with strong brands and good growth

potential. Based on a long-term commitment and with a focus

on growth and profitability, the VBG Group’s shareholders will

be offered attractive value growth.

Goals

• > 10% in average annual sales growth over a five-year

period, of which 5% attributable to actual organic growth

and 5% to structural growth.

• > 12% in average operating margin (EBIT) rolling five years.

Strategies

The Parent Company, VBG Group AB, is responsible for the

strategic governance of the Group as a whole, which entails

the approval and follow-up of divisional targets and strategies,

providing support in the form of industrial expertise and iden-

tifying and conducting strategic acquisitions. Furthermore, the

Parent Company is responsible for allocating capital, strategic

HR and IT work and the operation of all shared IT systems.

Strategies for the divisions:

• Strong brands and leading market positions

in selected niches

• High customer value in the products

• Diversified customer base

• International expansion

Stable ownership situation

The VBG Group’s principal owners comprise three foundations

set up by the Group’s founder, Herman Krefting. This owner-

ship structure has historically provided a high degree of finan-

cial stability, which in turn has resulted in solid total returns for

shareholders.

VBG GROUP IN THE WORLD

The VBG Group has 31 wholly owned companies in 18 countries and more than 1,600 employees in 18 countries worldwide.

Own companiesImporters/Agents

VBG Truck EquipmentEdscha Trailer SystemsMobile Climate ControlRingfeder Power Transmission


3

SALES BY DIVISION SALES BY MARKET

Sweden, 8%

Other Nordic countries, 6%

Germany, 13%

Other European countries, 17%

North America, 47%

Brazil, 2%

Australia/New Zealand, 2%

China, 1%

Rest of world, 3%

VBG Truck Equipment, 27%

Edscha Trailer Systems, 8%

Mobile Climate Control, 52%

Ringfeder Power Transmission, 13%

This is the VBG Group, cont.

DIVISIONS BRANDS

Our divisions

VBG TRUCK EQUIPMENT

By virtue of its own strong brands, the division is an interna-tionally leading supplier of coupling equipment for trucks with heavy trailers. The division accounts for more than 50% of the global market via the Ringfeder and VBG brands. The division also has Onspot — automatic tire chains with a world-leading position in its niche.

EDSCHA TRAILER SYSTEMS

By virtue of its own strong brands, the division is an interna-tionally leading supplier of sliding roofs to tarpaulin-covered trailers and tipper vehicles, as well as sliding bow roofs for rail-way wagons. The division accounts for approximately 40% of the global market for sliding roofs via the Edscha Trailer Sys-tems and Sesam brands.

RINGFEDER POWER TRANSMISSION

By virtue of its own strong brands, the division is a recognized global market leader in selected niches within mechanical power transmission and energy and shock absorption. The division’s brands are Ringfeder, Tschan, Henfel and Gerwah. The custom-ers are found in such widely disparate industrial markets as con-struction, machinery, power and mining.

MOBILE CLIMATE CONTROL

By virtue of its own strong brand, the division is an indus-try-leading supplier of complete climate control systems (HVAC systems) to commercial motor vehicles, primarily in North America and Europe. The customers are mainly found in four market segments: buses, off-road vehicles, utility vehicles and defense vehicles.

VBG Group’s markets remain, as a whole, strong and earnings

for the first quarter of the year have exceeded even my own

expectations. Historically, this quarter is usually the Group’s

best, but the business structure we have in place after the

acquisition of Mobile Climate Control has enabled us to report

more uniform sales and profit throughout the year, as this

division normally has its highest sales in the second and third

quarters. However, this year Mobile Climate Control reported

strong sales and profitability from the very outset of the year,

meaning we can report our best quarter ever, with both record

sales and operating profit. We therefore almost exceeded the

SEK 1 billion mark in sales already in the first quarter.

One important event for VBG Group during the quarter was

the acquisition by VBG Truck Equipment of BPW’s drawbar

assemblies business for commercial vehicles. This was a minor

acquisition financially, but very important from a strategic

perspective. Over the past number of years, VBG Truck

Equipment has endeavoured to adjust its business model to

the European market to correspond to the model we are

already successfully using in the Nordic region. The business

model is based on offering systems solutions to customers

rather than individual products. The acquisition gives us access

to products that make the division’s system offering complete

and further reinforces our position in the European market.

However, I do not expect to see a noticeable financial impact

until the end of 2019 or early next year, given that VBG Truck

Equipment will gradually take over the operations over the

course of the year and its immediate focus is on product and

knowledge transfer.


4

OUR BEST QUARTEREVER

We almost exceeded the SEK 1 billion mark in sales already in the first quarter.


5

VBG Truck Equipment — achieves milestone in Brazil

During the quarter, VBG Truck Equipment reported higher sales

and largely unchanged margins compared with the year-earlier

period. The venture in Brazil is still at an early stage, but the

division has completed its first customer deliveries during the

quarter, which is highly positive. When Ringfeder Power

Transmission acquired the Brazilian company Henfel in 2015,

we viewed our move into the Brazilian market as a long-term

strategic investment for the entire VBG Group and the fact

that VBG Truck Equipment is now delivering products to this

market is a milestone.

Edscha Trailer Systems — margins remain healthy

Compared with last year’s first quarter, Edscha Trailer Systems

has reported a decrease in sales. This is partly because the

division has not had any deliveries to customers in the railway

segment during the quarter, and weaker demand from the

division’s two main trailer customers. The division has, on the

other hand, noted excellent and profitable sales to its other

customers, which has contributed to favorable margins. I am

pleased to observe that Edscha Trailer Systems is continuing to

demonstrate stability.

Mobile Climate Control — good work improves profitability

Mobile Climate Control’s North American market remains

strong, in both the buses and off-road vehicle segments. This

has contributed to sustained high growth and in the past six

months, the division’s operations worked intensely to expand

capacity to meet rising demand from customers. We can

already see the results of this hard work, in the form of a clear

improvement in profitability.

It is worth mentioning that the division’s operations in India,

that were established in September last year, have performed

positively. From relatively small sales volumes in the early

months to a growing number of orders and customers during

this and previous quarters.

Ringfeder Power Transmission — stability and profitability

Ringfeder Power Transmission reported favourable sales

during the quarter and a slightly improvement in profitability.

We can now see that the division has a much more stable

delivery process following the restructuring that has taken

place in recent years. In addition to greater customer satisfac-

tion, this has reduced costs in the division’s supply chain.

VBG Group — agreements that offer the potential for growth

The three-year financing agreement we signed in conjunction

with the acquisition of Mobile Climate Control will expire at

the end of the current year. Negotiations about a new long-

term agreement are in progress and are expected to be com-

pleted during the second quarter of 2019. The new agreement

will offer us the right conditions to create both organic and

structural growth.


6

GROUP TREND

Sales and earnings

Sales of SEK 989.6 M (817.7) were 21.0% higher compared

with the first quarter of 2018. Adjusted for currency effects,

the actual organic growth was 14.7%.

The Group’s operating profit increased to SEK 135.5 M (105.2),

with an operating margin of 13.7% (12.9). Sales and earnings of

the individual divisions are presented on pages 8–15.

Group-wide overheads in the Parent Company that have

not been allocated to the divisions totaled SEK 3.7 M (2.9).

Net interest expense was SEK 9.7 M (expense: 8.7) and the

quarter’s currency effect on the Parent Company’s financial

liabilities’ in foreign currency resulted in a negative currency

effect of SEK 4.1 M (neg: 10.9). Accordingly, profit after finan-

cial items amounted to SEK 121.7 M (85.6), and profit after

tax to SEK 89.1 M (63.5). Earnings per share rose to SEK 3.56

(2.54), calculated on the average number of outstanding

shares for the period, 25,004,048 (25,004,048).

Capital expenditures

The Group’s new capital expenditures for the year amounted

to SEK 15.3 M (8.5), of which SEK 1.0 M pertains to purchases

in accordance with IFRS 16.

NET SALES, SEK M PROFIT AFTER FINANCIAL ITEMS, SEK M

0

150

75

225

300

375

450

0

60

40

20

100

80

120

20192016 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2

Quarterly figures Rolling 4 quarters

0

800

1,600

2,400

4,000

3,200

2019Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2

2016 2017


0

400

200

600

800

1,000

2018

Group, SEK MQ1

2019Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Net sales 989.6 3 492.4 868.8 874.8 931.2 817.7 3,002.0 737.0 719.2 777.2 768.6

Operating profit before deprecia-tion/amortization (EBITDA) 163.0 497.4 108.3 127.4 137.3 124.4 428.3 88.1 100.7 117.6 121.9

Operating profit before amortization (EBITA) 143.6 449.3 95.8 115.2 125.3 113.0 382.8 76.1 89.6 106.4 110.6

Operating profit (EBIT) 135.5 417.6 87.9 107.3 117.3 105.2 351.1 68.2 81.7 98.5 102.7

Operating margin (EBIT), % 13.7 12.0 10.1 12.3 12.6 12.9 11.7 9.2 11.4 12.7 13.4

Operating profit after financial items (EBT) 121.7 373.1 81.1 100.9 105.6 85.6 315.6 52.7 75.1 93.6 94.2

Profit after tax 89.0 273.0 60.5 71.2 77.8 63.5 220.5 30.6 53.2 70.1 66.6

Earnings per share, SEK 3.56 10.92 2.42 2.85 3.11 2.54 9.62 1.23 2.13 2.80 3.80

Cash flow from operating activities 100.1 253.6 46.6 97.0 37.0 73.0 243.7 87.5 43.4 38.5 74.3

ROE (cumulative), % 15.6 12.8 12.8 13.4 13.4 12.3 12.3 12.3 14.0 15.8 17.6

ROCE (cumulative), % 15.7 13.2 13.2 14.0 14.1 13.5 10.7 10.7 11.0 11.0 13.7

Equity/assets ratio, % 54.2 56.7 56.7 54.9 53.9 54.1 54.7 54.7 53.0 51.7 51.0

EBITDA, effect of IFRS 16 8.1

EBITA, effect of IFRS 16 0.4

EBIT, effect of IFRS 16 0.4

Profit after tax, effect of IFRS 16 –1.2


7

Financial position

Profit after tax for the period amounted to SEK 89.0 M (63.5)

and other comprehensive income to SEK 34.9 M (51.9), which

resulted in comprehensive income of SEK 123.9 M (115.4).

Accordingly, consolidated equity increased to SEK 2,350.3 M

during the period (2,226.5 at year-end).

The equity/assets ratio declined slightly during the period to

54.2% (56.7 at year-end) of which 2.2 percentage points was

a result of IFRS 16. Cash and cash equivalents increased by

SEK 85.5 M during the period to SEK 456.9 M at the end of

the period (371.4 at year-end). In addition, there were unuti-

lized overdraft facilities of SEK 100.0 M, which means the

Group at the end of March had available liquidity of SEK 556.9 M

(471.4 at year-end).

The Group’s interest-bearing net debt (including pension

liability) grew by SEK 102.8 M during the period, where the

reason for the increase is due to the additional lease liability,

to SEK 750.7 M at the end of the period (647.9 at year-end).

The ratio of interest-bearing net debt to equity was 0.32 at

March 31, 2019 (0.29 at December 31, 2018) and the ratio of

net debt to consolidated operating profit before depreciation/

amortization and impairment (EBITDA on a rolling four-quar-

ter basis) was 1.09 (1.30 at year-end).

The Group’s goodwill at the end of the first quarter amounted

to SEK 1,136.4 M (1,128.6 at year-end), which in relation to

equity amounted to a ratio of 0.48 (0.51 at year-end).

Cash flow

Cash flow from operating activities increased during the first

quarter to SEK 100.1 M (73.0). Paid capital expenditures during

the period amounted to SEK 13.2 M (14.9). The Group’s total

borrowings and current financial liability decreased during the

quarter by a net of SEK 5.2 M (increase: 3.6). Consequently,

net cash flow for the year was SEK 81.3 M (61.7).

Personnel

At March 31, 2019, there were 1,661 employees in the VBG

Group (1,573 at year-end), of which 217 (213) in Sweden.

During the first quarter of 2019, the Group employed an aver-

age of 1,635 persons (1,485 during the year-earlier period).

Of these, 217 (207) were active in Sweden. The cost of sala-

ries and social security contributions in the quarter was SEK

217.5 M (189.6).

IFRS 16

The effect of IFRS 16 in the quarter consisted of an increase in

the balance sheet of SEK 166.8 M, a positive impact on EBIT

of SEK 0.4 M and an adverse impact on profit after tax of SEK

1.2 M. As a consequence, a number of key figures were also

impacted. The largest share of the change in the balance

sheet, SEK 166.8 M, is attributable to properties, SEK 148.3 M,

of which SEK 112.0 M relates to Mobile Climate Control. SEK

0.8 M of the adverse impact on profit after tax of SEK 1.2 M is

attributable to Mobile Climate Control. The effect on EBITDA

was a positive SEK 8.1 M, as lease costs from an IFRS 16 per-

spective become amortization of the right-of-use relating to

the lease assets. Total amortization regarding IFRS 16 assets

was SEK 7.7 M in the quarter. Overall, IFRS 16 has a minor

impact on the Group as a whole. See page 24 for more com-

parisons of the impact of IFRS 16.

Per share data

Earnings per share increased to SEK 3.56 (2.54).

At March 31, 2019, equity per share (total outstanding

shares at the end of the period) was SEK 94.0, compared with

SEK 89.04 at year-end and SEK 84.80 at the end of March in

the preceding year.

At the end of the quarter, the share price was SEK 138.60,

which corresponds to a market capitalization of SEK 3,466 M,

compared a share price of SEK 126.80 and market capitaliza-

tion of SEK 3,170 M at year-end. The number of shareholders

increased by 12 during the first quarter to 4,296 (4,308 at

year-end).


8

VBG TRUCK EQUIPMENT

SALES/EARNINGS

SEK MQ1

2019

Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018

Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Net sales 266.5 921.0 244.7 205.1 231.8 239.4 836.7 223.1 185.5 202.3 225.8

EBITDA 68.7 191.4 51.0 36.9 42.0 61.5 184.6 50.4 37.4 39.8 57.0

EBITA 63.1 175.5 47.0 32.9 38.0 57.5 170.8 46.7 34.1 36.3 53.6

EBITA margin, % 23.7 19.0 19.2 16.1 16.4 24.0 20.4 20.9 18.4 18.1 23.7






SALES BY MARKET

SEK MQ1

2019

Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018

Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Sweden 70.8 234.6 58.7 48.9 62.1 64.9 199.0 48.7 44.0 50.3 56.0

Other Nordic countries 43.2 151.8 36.8 38.4 38.2 38.3 135.9 32.6 28.0 34.3 41.0

Germany 35.8 127.5 29.4 25.9 35.4 36.8 118.8 29.8 28.6 27.2 33.2

Other European countries 66.9 212.8 52.8 49.7 56.5 53.6 196.5 47.0 44.7 50.3 54.5

North America 25.3 99.4 35.9 24.0 19.2 20.3 92.0 28.6 20.5 18.8 24.1

Australia/New Zealand 16.2 61.5 16.0 13.1 10.0 22.4 67.7 22.9 16.3 15.1 13.4

China 3.3 14.4 8.0 3.1 2.8 0.6 1.6 1.6 0.0 0.0 0.0

Rest of world 5.0 19.1 7.1 2.0 7.6 2.5 25.2 12.0 3.4 6.3 3.6

VBG Truck Equipment 266.5 921.0 244.7 205.1 231.8 239.4 836.7 223.1 185.5 202.3 225.8

FIRST QUARTER 2019

• Sales rose 11.3% to SEK 266.5 M (239.4).

• EBITA increased to SEK 63.1 M (57.5), with an EBITA margin of 23.7% (24.0).


9

Sales and earnings

VBG Truck Equipment continued to perform very strongly and

the first quarter of the year was the best ever in terms of sales

and EBITA. Sales for the quarter grew 11.3% year-on-year to

SEK 266.5 M (239.4). Adjusted for exchange rate changes,

where the average USD rate between the quarters strength-

ened 13.2% and the EUR, which is a more important currency

for the division, strengthened 4.6%, the actual organic growth

was 7.4%.

EBITA, operating profit excluding amortization of intangible

assets, for VBG Truck Equipment rose year-on-year to SEK 63.1 M

(57.5) with the EBITA margin remaining high at 23.7% (24.0).

During the period, the division’s working capital increased

SEK 12.5 M to SEK 226.3 M (213.8) and, in addition to prop-

erty, plant and equipment of SEK 106.9 M, of which SEK 20.7 M

in increased assets in accordance with IFRS 16, operating capi-

tal amounted to SEK 333.2 M (300.7 at year-end) at the end

of March.

The division’s return on operating capital (ROOC), where

EBITDA on a rolling four-quarter basis is put in relation to

average operating capital for the same period, was 65.8%

(64.5% full-year 2018).

Investments and depreciation/amortization

VBG Truck Equipment’s investments during the first quarter

amounted to SEK 2.8 M (2.1), of which SEK 0.3 M pertains to

purchases in accordance with IFRS 16. Depreciation/amortiza-

tion during the quarter totaled SEK 5.6 M (4.0), of which SEK

1.8 M pertains to depreciation/amortization in accordance

with IFRS 16.

Personnel

During the first quarter, VBG Truck Equipment employed an

average of 277 persons (267 during the year-earlier period).

At March 31, 2019, 279 persons were employed in the division

(278 on March 31, 2018), compared with 278 employees at

year-end. Personnel costs for the quarter amounted to SEK

54.3 M (51.8), resulting in a cost per employee of SEK 196.0

thousand (194.0).

0

400

200

600

800

1,000

0

60

120

180

240

300

20192016 2017 2018

0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2


0

50

100

200

150

0

40

20

80

60

20192016 2017 2018

0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2


NET SALES, SEK M EBITA, SEK M


10


SALES/EARNINGS

SEK MQ1

2019

Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018

Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Net sales 76.0 322.1 71.5 73.3 88.6 88.7 259.7 63.4 57.5 69.3 69.5

EBITDA 13.2 48.9 9.9 8.8 15.9 14.2 24.2 –0.1 3.4 10.2 10.7

EBITA 11.2 43.5 8.5 7.4 14.6 13.0 18.8 –1.5 2.0 8.8 9.4

EBITA margin, % 14.7 13.5 11.9 10.1 16.4 14.6 7.2 –2.4 3.5 12.8 13.5

Operating profit/loss (EBIT) 9.9 38.4 7.3 6.1 13.3 11.7 13.6 –2.8 0.7 7.6 8.2

Operating margin (EBIT), % 13.0 11.9 10.1 8.4 15.0 13.2 5.3 –4.5 1.2 10.9 11.8




SALES BY MARKET

SEK MQ1

2019

Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018

Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Sweden 0.0 0.2 0.1 0.0 0.1 0.1 0.2 0.0 0.1 0.0 0.1


Germany 40.5 172.8 42.6 42.8 43.4 44.4 147.0 36.4 31.9 37.1 41.4


Rest of world 0.8 1.9 0.5 0.8 0.3 0.0 0.9 0.2 0.0 0.7 0.1

Edscha Trailer Systems 76.0 322.1 71.5 73.3 88.6 88.7 259.7 63.4 57.5 69.3 69.5

FIRST QUARTER 2019

• Sales decreased 14.3% to SEK 76.0 M (88.7).

• EBITA amounted to SEK 11.2 M (13.0), with an EBITA margin of 14.7% (14.6).


11

Sales and earnings

Edscha Trailer Systems reported a weaker quarter in terms of

sales compared with the very strong first quarter in 2018. The

division’s sales decreased 14.3% to SEK 76.0 M (88.7).

Adjusted for exchange rate effects, the actual organic growth

was a negative 18.0%. EBITA for the quarter decreased to SEK

11.2 M (13.0), but with a continuing positive EBITA margin of

14.7% (14.6).


by SEK 11.3 M to SEK 74.7 M (63.4 at year-end). With the

addition of property, plant and equipment of SEK 58.8 M, of

which SEK 15.8 M in increased assets in accordance with IFRS

16, operating capital amounted to SEK 133.5 M (105.2 at

year-end) at the end of March.

The division’s return on operating capital (ROOC), where

EBITDA on a rolling four-quarter basis is put in relation to

average operating capital for the same period, was 40.4%

(41.7% full-year 2018).


Edscha Trailer Systems’ investments during the first quarter





with IFRS 16.

Personnel

During the first quarter, Edscha Trailer Systems employed an

average of 87 persons (88 during the year-earlier period). At

March 31, 2019, 83 persons were employed in the division (90

on March 31, 2018), compared with 84 employees at year-

end. Personnel costs for the quarter amounted to SEK 9.0 M

(9.8), resulting in a cost per employee of SEK 103.5 thousand

(111.4).

0

80

160

240

400

320

0

20

40

60

100

80

20192016 2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2


0

20

10

30

50

40

0

4

16

12

8

20

20192016 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q1 Q2


Q4



12

SALES/EARNINGS

SEK MQ1

2019Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Net sales 514.1 1,727.3 421.8 460.4 476.8 368.3 1,426.7 338.6 357.4 383.2 347.5

EBITDA 61.4 187.3 33.9 57.0 64.7 31.7 160.8 28.6 42.8 52.4 37.0

EBITA 53.9 173.9 30.3 53.4 61.4 28.8 149.0 25.6 39.9 49.5 34.1

EBITA margin, % 10.5 10.1 7.2 11.6 12.9 7.8 10.4 7.6 11.2 12.9 9.8






SALES BY MARKET

SEK MQ1

2019Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Sweden 10.1 36.7 9.0 8.3 10.1 9.4 37.3 8.0 8.2 9.2 11.9


Germany 8.3 30.6 7.3 7.8 7.7 7.8 24.1 6.3 7.0 5.7 5.2


North America 428.0 1,429.9 348.2 386.0 398.7 297.0 1,155.7 273.6 288.2 314.4 279.5

China 3.6 14.4 3.1 4.4 4.9 2.0 9.3 2.1 2.7 1.9 2.7

Rest of world 7.7 25.8 8.7 6.6 6.0 4.5 18.8 3.6 4.8 6.2 4.3

Mobile Climate Control 514.1 1,727.3 421.8 460.4 476.8 368.3 1,426.7 338.6 357.4 383.2 347.5

FIRST QUARTER 2019





13

Sales and earnings

Mobile Climate Control reported a very strong quarter with

record sales in excess of SEK 0.5 billion. Sales for the quarter

grew 39.6% year-on-year to SEK 514.1 M (368.3), with a very

robust performance noted in the North American market.

Adjusted for exchange rate changes, where the average USD

rate strengthened by 13.2% year-on-year, the actual organic

growth was 30.7%. EBITA for Mobile Climate Control

increased year-on-year to SEK 53.9 M (28.8) with the EBITA

margin rising to 10.5% (7.8).


SEK 71.7 M to SEK 496.2 M (424.5) and, in addition to prop-

erty, plant and equipment of SEK 232.2 M, of which SEK

118.9 M in increased assets in accordance with IFRS 16, oper-

ating capital amounted to SEK 728.4 M (535.4 at year-end) at

the end of March.

The division’s return on operating capital (ROOC) for the

period, where EBITDA on a rolling four-quarter basis is put in

relation to average operating capital for the same period, was

40.3% (38.6% full-year 2018).


Mobile Climate Control’s investments during the first quarter





with IFRS 16.

Personnel

During the first quarter, Mobile Climate Control employed an

average of 942 persons (807 during the year-earlier period). At

March 31, 2019, 944 persons were employed in the division

(822 on March 31, 2018), compared with 870 employees at

year-end. Personnel costs for the quarter amounted to SEK

118.2 M (86.3), resulting in a cost per employee of SEK 125.5

thousand (106.9).

0

400

800

1,200

2,000

1,600

0

100

200

300

600

500

400


Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2017 2018 2019

0

80

40

120

200

160

0

20

10

30

40

60

50

2017 2018 2019


Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1



14


SALES/EARNINGS

SEK MQ1

2019

Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018

Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Net sales 133.0 522.0 130.5 136.2 134.0 121.4 479.1 112.0 118.8 122.4 125.8

EBITDA 23.0 87.2 19.8 26.8 21.0 19.6 76.7 15.6 19.5 20.6 21.0

EBITA 19.1 74.2 16.5 23.6 17.7 16.5 64.3 12.5 16.5 17.6 17.8

EBITA margin, % 14.3 14.2 12.6 17.3 13.2 13.6 13.4 11.2 13.9 14.4 14.1




EBITA, effect of IFRS 16 –0.1

EBIT, effect of IFRS 16 –0.1

SALES BY MARKET

SEK MQ1

2019

Full-year

2018Q4

2018Q3

2018Q2

2018Q1

2018

Full-year

2017Q4

2017Q3

2017Q2

2017Q1

2017

Sweden 1.3 4.5 1.4 0.9 1.2 1.0 4.6 1.3 1.1 0.7 1.5


Germany 46.8 183.8 41.9 48.9 47.5 46.0 170.3 37.7 43.1 43.5 46.0


North America 25.8 119.1 29.9 31.8 31.1 26.4 101.1 24.3 24.2 26.0 26.6

Brazil 16.0 57.1 14.4 14.8 12.7 15.2 66.7 16.0 16.2 18.9 15.6

Australia/New Zealand 5.4 11.3 2.8 2.9 2.9 2.6 11.5 1.9 2.5 2.5 4.6

China 2.5 16.8 3.9 4.9 4.6 3.4 15.9 3.7 4.5 7.7 1.6

Rest of world 16.9 60.2 18.7 14.4 14.6 11.9 42.8 11.6 10.8 6.5 12.3

FIRST QUARTER 2019




15

Sales and earnings

Ringfeder Power Transmission began the year by reporting a

stable performance with improved year-on-year sales and

earnings in the first quarter. Sales for the quarter rose 9.6% to

SEK 133.0 M (121.4) and adjusted for exchange rate changes,

where the average USD rate strengthened 13.2%, the BRL

weakened 2.5% and the EUR strengthened 4.6%, the actual

organic growth was 4.2%. EBITA for Ringfeder Power Trans-

mission increased year-on-year to SEK 19.1 M (16.5) with an

EBITA margin of 14.3% (13.6).

During the period, the division’s working capital increased by

SEK 1.5 M to SEK 216.7 M (215.2). With the addition of prop-

erty, plant and equipment of SEK 121.1 M, of which SEK 10.1

M in increased assets in accordance with IFRS 16, operating

capital amounted to SEK 337.9 M (322.8) at the end of March.

The division’s return on operating capital (ROOC) for the

period, where EBITDA is put in relation to average operating

capital for the same period, was 28.2% (27.9% full-year 2018).


Ringfeder Power Transmission’s investments during the first

quarter amounted to SEK 4.5 M (1.6), of which SEK 0.2 M

pertains to purchases in accordance with IFRS 16. Deprecia-

tion/amortization during the quarter totaled SEK 5.0 M (4.2),

of which SEK 0.9 M pertains to depreciation/amortization in

accordance with IFRS 16.

Personnel

During the first quarter, Ringfeder Power Transmission employed

an average of 320 persons (317 during the year-earlier period).

At March 31, 2019, 346 persons were employed in the division

(349 on March 31, 2018), compared with 335 employees at year-

end. Personnel costs for the quarter amounted to SEK 38.2 M

(35.2), resulting in a cost per employee of SEK 119.4 thousand

(100.9).

0

120

240

360

600

480


0

30

60

90

150

120

2019Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2

2016 2017 2018

0

20

40

60

80

100

0

5

15

10

25

20

2019Q42016 2017 2018


Q1 Q2 Q3 Q1 Q2 Q3 Q1Q4Q3 Q4 Q1 Q2



16

Parent Company

VBG Group AB’s operations are focused on managing, devel-

oping and coordinating the Group. The assets in the Parent

Company consist primarily of shares in subsidiaries and

brands. The objective is that the Group’s key intellectual prop-

erty in the form of brands and other rights should be gathered

in the Parent Company. VBG Group AB focuses on maintaining

and securing all the Group’s trademarks and rights.

The Parent Company’s net sales pertain primarily to intra-

Group services and license revenues and amounted to SEK 2.9

M (2.6) during the period. The operating loss for the period was

SEK 8.5 M (loss: 8.6). After dividends from Group companies

totaling SEK 2.1 M (1.3), exchange rate differences of SEK 2.3 M

(neg: 8.6) and net interest expenses totaling SEK 3.0 M (expense:

3.6), loss before tax amounted to SEK 7.1 M (loss: 19.5).

Accounting policies

The VBG Group applies the EU-endorsed IFRS standards and

interpretations thereof (IFRIC). This interim report for the Group

has been prepared in accordance with the Annual Accounts Act

and IAS 34 Interim Financial Reporting, and for the Parent

Company, in accordance with the Annual Accounts Act and

recommendation RFR 2, Accounting for Legal Entities. The

same accounting policies and calculation methods were applied

as in the most recent annual report, with the exception of IFRS

16, which the Group applies from January 1, 2019.

IFRS 16 Leases took effect on January 1, 2019. IFRS 16 spec-

ifies the recognition of leases for both the lessor and lessee.

The implementation of the standard means almost all leases

will be recognized in the lessee’s balance sheet, as no distinc-

tion is now made between operating and finance leases. In

accordance with the new standard, an asset (the right to use

a leased asset) and a financial liability pertaining to the obliga-

tion to make lease payments are recognized in the balance

sheet and that amortization of leased assets, separate from the

interest expense of the lease, is recognized in profit or loss.

VBG Group has, when transitioning to IFRS 16 on January 1,

2019, used a modified retrospective approach, which means the

2018 fiscal year is not restated. Lease liability is the total present

value of all future fees until the lease has expired. The simplified

rule was applied during the transition, meaning the right-of-use

(before adjustments for any advance payment) corresponds to

the lease liability. The discount rate is VBG Group’s incremental

borrowing rate for each currency. Exemptions to not recognize

short-term leases and assets of low value were also applied.

This report may contain rounding differences.

New accounting policy for leases

As of January 1, 2019, VBG Group applies the recognition of

leases in accordance with IFRS 16 using the following account-

ing policy. All leases are recognized in the balance sheet, on

the starting date, as a right-of-use and a lease liability. An

agreement is considered, or includes a lease, if the agreement

transfers the right to determine the use of an identified asset

over a specified period in exchange for remuneration. A right-

of-use and lease liability are recognized for all leases with a

lease term of more than twelve months, with the exception of

assets of low value. After the starting date, right-of-use is

measured in accordance with provisions for property, plant

and equipment. A lease liability is discounted by using the

implicit interest in the lease, if this interest rate is readily iden-

tifiable. If the interest rate is not readily identifiable, the incre-

mental borrowing rate can be used. The incremental borrow-

ing rate is determined based on currency and financing terms

for the Group. The lease term is determined as the non-can-

cellable period together with both periods covered by a poten-

tial extension to the lease if the lessee is reasonably confident

that this alternative will be used, and periods covered by an

opportunity to end the lease if the lessee is reasonably confi-

dent that this alternative will be used. VBG Group has also

applied the simplified rule for fixed, non-lease components

and instead recognizes these together with the lease compo-

nent in the contract. Moreover, future modified leases will not

be recognized as a separate lease, but rather as a remeasure-

ment of the lease liability and an adjustment of right-of-use.

Risks and uncertainty factors

The Group’s and the Parent Company’s significant risks and

uncertainty factors include operational risks in the form of

commodity risks, product risks, development risks, intellectual

property risks, environmental risks, political risks, business

interruption and property risks, cyclical risks, IT security risks

and legal risks. To these can be added financial risks such as

financing risks, liquidity risks, interest rate risks, currency risks

and credit and counterparty risks as well as sustainability risks.

For a more detailed description of the Group’s risks and risk

management, see Note 2 of VBG Group AB’s annual report for

2018.

Outlook for 2019

The company makes no forecast.

Financial information 2019/2020

Interim report, six months 2019 August 20, 2019

Interim report, nine months 2019 October 22, 2019

Year-end report 2019 February 20, 2020

Interim report, three months 2020 April 28, 2020

Annual General Meeting 2020 April 28, 2020

Interim report, six months 2020 August 20, 2020

Interim report, nine months 2020 October 22, 2020

Related party transactions

There have been no related party transactions in 2019 that

have significantly affected the company’s financial position

and results. Related party transactions during 2018 are dis-

closed in Note 6 in the annual report for 2018.

Auditor’s review

This interim report is unaudited.

Events after the close of the reporting period

No significant events occurred after the close of the period.

OTHER INFORMATION


17

For further information, please contact:

Anders Birgersson, President and CEO

Telephone: +46 521 27 77 67, +46 702 27 77 78

E-mail: [email protected]

Note

The information in this report is of the type that VBG Group

AB is obligated to disclose in accordance with the Swedish

Securities Exchange and Clearing Operations Act and/or the

Financial Instruments Trading Act. The information was sub-

mitted for publication at 3:00 p.m. on April 24, 2019.

Press releases issued in the first quarter of 2019

VBG Group AB (publ)

publishes Annual Report for 2018 March 26, 2019

Notice to attend the Annual General Meeting March 23, 2019

VBG Group acquires BPW’s

drawbar assemblies business March 15, 2019

Year-end report 2018 February 19, 2019

Vänersborg, April 24, 2019

VBG Group AB (publ)

Anders Birgersson

President and CEO


18

Consolidated Income Statement and Statement of other comprehensive income — Highlights

SEK MQ1

Jan–Mar 2019Q1

Jan–Mar 2018Full-year

2018

Net sales 989.6 817.7 3,492.4

Cost of goods sold –647.6 –529.1 –2,301.6

Gross profit 342.0 288.6 1,190.9

Selling expenses –97.5 –93.5 –381.7

Administrative expenses –66.5 –61.8 –265.0

Research and development costs –35.4 –29.5 –136.4

Other operating income and expenses –7.0 1.3 9.8

–206.5 –183.4 –773.3

Operating profit 135.5 105.2 417.6

Exchange rate effects, net –4.1 –10.9 –10.7

Interest income 0.7 0.3 2.2

Interest expenses –7.0 –6.8 –27.8

Other financial expenses –3.4 –2.1 –8.3

Total financial items –13.8 –19.6 –44.5

Profit after financial items 121.7 85.6 373.1

Tax –32.8 –22.1 –100.1

Profit for the period 89.0 63.5 273.0

Profit for the period attributable to Parent Company shareholders 89.0 63.5 273.0

Other comprehensive income

Profit for the period 89.0 63.5 273.0

Items that will not be reversed in the Income Statement

Effect of translation of defined-benefit pension plans, net after tax — — –4.4

Items that may later be reversed in the Income Statement

Translation differences pertaining to foreign operations 34.2 52.8 34.4

Translation differences pertaining to hedge accounting for net investments in foreign operations 0.7 –0.9 –2.0

Other comprehensive income, net after tax 34.9 51.9 28.0

Comprehensive income for the period 123.9 115.4 301.0

Comprehensive income for the period attributable to Parent Company shareholders 123.9 115.4 301.0

Earnings per share, basic and diluted, SEK 3.56 2.54 10.92

Number of outstanding shares at end of period (‘000) 25,004 25,004 25,004

Average number of shares during the period (‘000) 25,004 25,004 25,004

Number of own shares at end of period (‘000) 1,192 1,192 1,192


19

Sales and earnings by segment

SEK M

VBG Truck

Equipment

Edscha Trailer

Systems

Mobile Climate Control

Ringfeder Power

Transmission Group-wide Group

2019

Q1 Jan–Mar Net sales 266.5 76.0 514.1 133.0 989.6

Operating profit/loss 63.0 9.9 48.4 17.9 –3.7 135.5

Operating margin, % 23.6 13.0 9.4 13.5 13.7

Net financial items –13.8 –13.8

Profit after financial items 121.7

2018

Q1 Jan–Mar Net sales 239.4 88.7 368.3 121.4 817.7

Operating profit/loss 57.5 11.7 23.4 15.4 –2.9 105.2

Operating margin, % 24.0 13.2 6.3 12.7 12.9

Net financial items –19.6 –19.6

Profit after financial items 85.6


20

Consolidated Balance SheetSEK M Mar. 31, 2019 Mar. 31, 2018 Dec. 31, 2018

AssetsNon-current assetsIntangible assetsBrands, customer relationships and other intangible assets 798.7 822.7 798.9Goodwill 1,136.4 1,130.3 1,128.6

1,935.1 1,953.0 1,927.5Property, plant and equipmentLand and buildings 187.9 183.8 186.2Plant and machinery 105.1 100.7 100.7Equipment, tools, fixtures and fittings 49.6 56.0 51.3Construction in progress 12.1 10.8 10.3Right-of-use 167.1 — —

521.8 351.3 348.5

Deferred tax asset 67.2 49.8 63.8

Total non-current assets 2,524.1 2,354.0 2,339.9

Current assetsInventoriesRaw materials and consumables 336.1 298.4 322.2Work in progress 87.2 82.6 85.1Finished products and merchandise 228.9 173.6 227.6

652.2 554.6 634.9Current receivablesTrade receivables 616.2 506.0 491.2Current tax assets 23.5 36.3 25.5Other receivables 38.3 54.0 41.4Prepaid expenses and accrued income 22.1 24.3 19.7

700.1 620.5 577.6Cash and cash equivalentsCash on hand and demand deposits 456.9 386.9 371.4Total current assets 1,809.3 1,562.0 1,583.9

Total assets 4,333.4 3,916.0 3,923.8

Equity and liabilitiesEquityShare capital 65.5 65.5 65.5Other contributed capital 779.4 779.4 779.4Reserves 71.5 43.2 118.4Retained earnings, incl. net profit for the year 1,433.9 1,232.1 1,263.1Total equity 2,350.3 2,120.2 2,226.5

Non-current liabilitiesProvisions for pensions and similar obligations 197.6 189.6 196.9Deferred tax liability 225.8 207.5 224.6Other provisions 25.3 29.4 49.0Lease liability 142.5 — —Liabilities to credit institutions 0.6 812.6 0.9Total non-current liabilities 591.8 1,239.1 471.3

Current liabilitiesLiabilities to credit institutions 842.5 76.1 821.5Trade payables 257.1 247.4 212.7Current tax liabilities 28.0 24.6 36.7Other liabilities 47.1 32.9 30.4Lease liability 24.3 — —Accrued expenses and deferred income 192.1 176.1 151.3Total current liabilities 1,391.2 557.1 1,252.6

Total equity and liabilities 4,333.4 3,916.0 3,923.8


21

Changes in Consolidated Equity

SEK M Q1 2019 Q1 2018 Full-year 2018

Opening equity according to balance sheet at December 31 2,226.5 2,004.9 2,004.9

Total comprehensive income for the period 123.9 115.4 301.0

Contributed capital, new share issue, net — — 1.9

Dividend 0.0 0.0 –81.3

Equity at end of period 2,350.3 2,120.2 2,226.5

Consolidated Cash Flow Statement

SEK M Q1 2019 Q1 2018 Full-year 2018

Operating activities

Operating profit before financial items 135.5 105.2 417.6

Depreciation/amortization 27.5 19.2 79.8

Other items not affecting liquidity 5.1 17.8 24.8

Interest received, etc. 1.0 0.4 3.0

Interest paid, etc. –9.2 –9.1 –36.8

Tax paid –41.1 –31.6 –80.7

Cash flow before change in working capital 118.9 101.9 407.7

Decrease/increase (–) in inventories –0.4 –49.9 –130.9

Decrease/increase (–) in trade receivables –107.4 –75.5 –61.7

Decrease/increase (–) in other current receivables 1.9 –14.3 –0.3

Increase/decrease (–) in trade payables 32.8 64.0 29.9

Increase/decrease (–) in other current liabilities 54.3 46.7 8.9

Cash flow from operating activities 100.1 73.0 253.6

Investing activities

Investments in intangible assets –2.4 –1.1 –2.2

Investments in property, plant and equipment –10.9 –13.8 –45.0

Cash flow from investing activities –13.2 –14.9 –47.2

Financing activities

Repayment of loans — — –80.0

Loans raised and changes to existing loans –5.2 3.6 0.6

New share issue — — 1.9

Dividend paid — — –81.3

Cash flow from financing activities –5.2 3.6 –158.9

Cash flow for the year 81.3 61.7 47.5

Cash and cash equivalents at start of year 371.4 321.4 321.4

Translation difference, cash and cash equivalents 4.3 3.7 2.4

Cash and cash equivalents at end of period 456.9 386.9 371.4

Unutilized overdraft facilities 100.0 100.0 100.0

Total cash and cash equivalents available 556.9 486.9 471.4


22

Key figures for Group SEK M Q1 2019 Q1 2018 Full-year 2018

Operating margin (EBIT), % 13.7 12.9 12.0

Profit margin (ROS), % 12.3 10.5 10.7

Return on equity (ROE), % 15.6 12.3 12.8

Return on capital employed (ROCE), % 15.7 13.5 13.2

Equity/assets ratio, % 54.2 54.1 56.7

Equity per outstanding share at end of period, SEK 94.0 84.80 89.04

Cash flow from operating activities, per average outstanding share, SEK 4.00 2.92 10.14

Profit per average outstanding share during the period, SEK 3.56 2.54 10.92

Share price at end of period, SEK 138.60 134.00 127.00

Number of employees, average 1,635 1,485 1,561

Number of outstanding shares at end of period (‘000) 25,004 25,004 25,004

Number of own shares at end of period (‘000) 1,192 1,192 1,192

Average number of outstanding shares during the period (‘000) 25,004 25,004 25,004


23

Parent Company Balance Sheet

SEK M Mar. 31, 2019 Mar. 31, 2018 Dec. 31, 2018

Other intangible assets 0.7 2.6 0.8

Property, plant and equipment 1.1 1.1 1.2

Long-term investments 2,352.0 1,987.5 2,341.3

Total non-current assets 2,353.8 1,991.2 2,343.3

Receivables 65.4 420.8 113.8

Cash on hand, demand deposits and short-term investments 380.0 221.4 232.4

Total current assets 445.4 642.2 346.2

Total assets 2,799.2 2,633.4 2,689.5

Equity 1,420.4 1,260.0 1,425.6

Untaxed reserves 5.5 4.8 5.5

Provisions 13.1 15.7 13.1

Non-current liabilities 0.0 801.4 0.0

Current liabilities 1,360.2 551.5 1,245.3

Total equity and liabilities 2,799.2 2,633.4 2,689.5

Parent Company Income Statement

SEK MQ1

Jan–Mar 2019Q1

Jan–Mar 2018 Full-year 2018

Net sales 2.9 2.6 42.6

Operating expenses –11.4 –11.2 –53.7

Operating loss –8.5 –8.6 –11.1

Net financial items 1.4 –10.9 205.0

Loss after financial items –7.1 –19.5 193.9

Appropriations — — 30.2

Tax — — –2.0

Loss for the period –7.1 –19.5 222.1


24

The interim report at March 31 was prepared in accordance with the new IFRS 16 standard, which means assets and liabilities in

the balance sheet have increased with right-of-use assets and lease liabilities. Changes have also taken place in the income state-

ment as lease costs are reclassified to amortization and interest expense in accordance with the new standard. The following is a

list of the effects on the balance sheet and income statement as well as on key figures resulting from the transition to the new

standard. See page 16 for more information about IFRS 16.

CONSOLIDATED INCOME STATEMENT – HIGHLIGHTS

SEK MQ1 19 excl.

IFRS 16Effect of IFRS 16

Q1 19 incl. IFRS 16

Net sales 989.6 989.6

Operating expenses –834.7 8.1 –826.6

Depreciation/amortization –19.9 –7.7 –27.5


Net financial items –12.2 –1.5 –13.8

Profit/loss after financial items 122.8 –1.1 121.7

Tax –32.6 –0.1 –32.8

Profit/loss for the period 90.2 –1.2 89.0

CONSOLIDATED BALANCE SHEET – HIGHLIGHTS

SEK MQ1 19 excl.

IFRS 16Effect of IFRS 16

Q1 19 incl. IFRS 16

Assets

Total non-current assets 2,357.1 167.1 2,524.2

Total current assets 1,811.0 –1.8 1,809.2

Total assets 4,168.1 165.3 4,333.4

Liabilities

Equity 2,352.0 –1.6 2,350.3

Total non-current liabilities 449.3 142.5 591.8

Total current liabilities 1,366.9 24.3 1,391.2

Total equity and liabilities 4,168.1 165.3 4,333.4

THE GROUP’S KEY FIGURES

SEK MQ1 19 excl.

IFRS 16 Effect of

IFRS 16Q1 19 incl.

IFRS 16

EBITDA 154.9 8.1 163.0

EBITA 143.2 0.4 143.6

Equity/assets ratio, % 56.4 –2.2 54.2

Interest-bearing net debt 583.9 166.8 750.7


ROCE 16.5 –0.8 15.7

Earnings per share, SEK 3.61 –0.05 3.56

Effects of transition to IFRS 16


25

Alternative performance measuresReconciliation between IFRS and performance measures used

Certain information in this report that is used by company management and analysts to assess the Group’s performance has not

been prepared in accordance with IFRS. Company management believes that this information makes it easier for investors to ana-

lyze the Group’s earnings performance and financial structure. Investors should view this information as a supplement rather than

a replacement of financial reporting in accordance with IFRS.

ACTUAL ORGANIC GROWTH

Growth in net sales excluding effects of structural changes, meaning acquired or divested operations, and excluding currency effects.

SEK M Q1 2019 Q1 2018 Full-year 2018

Group

Net sales 989.6 817.7 3,492.4

Acquired volume (incl. full-year effect from preceding year)

Currency effect –51.9 10.7 –100.5

Net sales excluding acquisitions and currencies 937.7 828.4 3,391.9

Actual organic growth 120.0 59.8 389.9

Organic growth, % 14.7 7.8 13.0

VBG Truck Equipment

Net sales 266.5 239.4 921.0


Currency effect –9.4 –2.6 –30.6

Net sales excluding acquisitions and currencies 257.1 236.8 890.4



Edscha Trailer Systems

Net sales 76.0 88.7 322.1


Currency effect –3.3 –4.3 –19.6


Actual organic growth –16.0 14.9 42.8

Organic growth, % –18.0 21.5 16.5


Net sales 514.1 368.3 1,727.3



Net sales excluding acquisitions and currencies 481.5 384.0 1,691.0



Ringfeder Power Transmission

Net sales 133.0 121.4 522.0




Actual organic growth 5.1 –2.5 29.1

Organic growth, % 4.2 –2.0 6.1


26

EBITDA

Operating profit before depreciation and impairment on property, plant and equipment.Group, SEK M Q1 2019 Q1 2018 Full-year 2018


Depreciation/amortization 27.5 19.2 79.8

EBITDA 163.0 124.4 497.4

EBITA

Operating profit before amortization and impairment of intangible assets.Group, SEK M Q1 2019 Q1 2018 Full-year 2018


Amortization of intangible assets 8.1 7.9 31.7

EBITA 143.6 113.0 449.3

PROFIT MARGIN

Profit after financial items as a percentage of net sales.Group, SEK M Q1 2019 Q1 2018 Full-year 2018

Net sales 989.6 817.7 3,492.4

Profit after financial items 121.7 85.6 373.1

Profit margin, % 12.3 10.5 10.7

INTEREST-BEARING NET DEBT

Interest-bearing provisions and loan liabilities less cash and cash equivalents.Group, SEK M Q1 2019 Q1 2018 Full-year 2018

Provisions for pensions 197.6 189.6 196.9

Overdraft facilities — — —

Loans 843.2 888.7 822.4

Lease liability 166.8 — —

Bank balances –456.9 –386.9 –371.4


INTEREST-BEARING NET DEBT/EBITDA, ROLLING FOUR QUARTER

Interest-bearing net debt in proportion to operating profit before depreciation/amortization and impairment.Group, SEK M Q1 2019 Q1 2018 Full-year 2018


EBITDA, rolling four quarter 536.0 430.8 497.4



27

ROOC

EBITDA as a percentage of operating capital as below.

Group, SEK M Q1 2019 Q1 2018 Full-year 2018

VBG Truck Equipment

Inventories 119.9 118.2 117.7

Trade receivables 167.8 152.2 138.9

Trade payables –61.4 –46.6 –42.8

Working capital 226.3 223.8 213.8


Operating capital 333.2 311.9 300.7


Average operating capital four quarter 301.7 272.1 296.9

ROOC, % 65.8 69.5 64.5

Edscha Trailer Systems

Inventories 47.4 53.7 51.6








ROOC, % 40.4 24.6 41.7


Inventories 346.6 260.0 328.4


Trade payables –166.5 –155.9 –140.8






ROOC, % 40.3 37.9 38.6

Ringfeder Power Transmission

Inventories 138.3 124.5 139.0








ROOC, % 28.2 25.9 27.9


28

IndiaMOBILE CLIMATE CONTROL THERMAL INDIA PVT. LTD.Plot No. 4BRoad No.2, Phase-IKIADB Industrial Area NarasapuraKolar – 56313, Karnataka

BrazilMCC DO BRASIL LTDARua Silverio Finamore, 920-Gp 3Louveira- SP, 13.290-000Tel +55 19 3878 2058


GermanyRINGFEDER POWER TRANSMISSION GMBHWerner-Heisenberg-Straße 18 DE-64823 Groß-UmstadtTel +49 6078 9385-0

RINGFEDER POWER TRANSMISSION TSCHAN GMBHPostfach 2166DE-66521 NeunkirchenTel +49 6821 866 0

Czech RepublicRINGFEDER POWER TRANSMISSION S.R.O. Oty Kovala 1172CZ-33441 DobranyTel +420 377 201 511

USARINGFEDER POWER TRANSMISSION USA CORPORATION165 Carver AvenueWestwood, N.J. 07675Tel +1 201 666 3320

IndiaRINGFEDER POWER TRANSMISSION INDIA PRIVATE LTD.Plot No. 4, Door No. 220Mount Poonamallee High RoadKattuppakkamChennai-600056Tel +91 44 2679 1411

ChinaKUNSHAN RINGFEDER POWER TRANSMISSION CO., LTD.No. 406, Jiande RoadZhangpu 215321Kunshan, Jiangsu ProvinceTel +86 512 5745 3960

BrazilHENFEL INDÚSTRIA METALÚRGICA LTDA.Major Hilario Tavares Pinheiro, 3447 Cep 14871 - 300Jaboticabal, SPTel +55 16 3209 3422

VBG TRUCK EQUIPMENT

Sweden VBG GROUP TRUCK EQUIPMENT AB Box 1216SE-462 28 VänersborgTel +46 521 27 77 00

GermanyVBG GROUP TRUCK EQUIPMENT GMBHPostfach 13 06 55DE-47758 KrefeldTel +49 2151 835-0

DenmarkVBG GROUP SALES A/SIndustribuen 20–22DK-5592 EjbyTel +45 64 46 19 19

NorwayVBG GROUP SALES ASPostboks 94 LeirdalNO-1009 OsloTel +47 23 14 16 60

UKVBG GROUP SALES LIMITEDUnit 9, Willow CourtWest Quay Road, Winwick QuayWarrington, Cheshire WA2 8UFTel +44 1925 23 41 11

BelgiumVBG GROUP TRUCK EQUIPMENT NVIndustrie Zuid Zone 2.2Lochtemanweg 50BE-3580 BeringenTel +32 11 60 90 90

USAONSPOT OF NORTH AMERICA, INC.P.O. Box 1077North Vernon, IN 47265-5077Tel +1 800 224 2467

Branch:555 Lordship BlvdStratford, CT 06615-7124Tel +1 800 766 7768

FranceONSPOT E.U.R.L14 Route de SarrebruckFR-57645 Montoy-FlanvilleTel +33 387 763 080


Germany EUROPEAN TRAILER SYSTEMS GMBHIm Moerser Feld 1fDE-47441 MoersTel +49 2841 6070 700

Czech RepublicEUROPEAN TRAILER SYSTEMS S.R.O.Ke Gabrielce 786CZ-39470 Kamenice nad LipouTel +420 565 422 402

VBG GROUP

SwedenVBG GROUP AB (PUBL) Kungsgatan 57SE-461 34 TrollhättanTel +46 521 27 77 00www.vbggroup.com


SwedenMOBILE CLIMATE CONTROL GROUP HOLDING ABKungsgatan 57SE-461 34 TrollhättanTel +46 521 27 77 00

MOBILE CLIMATE CONTROL SVERIGE ABSikvägen 9SE-761 21 NorrtäljeTel +46 8 402 21 40

GermanyMOBILE CLIMATE CONTROL GMBH Jägerstraße 33DE-712 72 RenningenTel +49 715 993 087–0

CanadaMOBILE CLIMATE CONTROL INC.7540 Jane St.Vaughan, OntarioL4K 0A6Tel +1 905 482 2750

MOBILE CLIMATE CONTROL INC.6659 Ordan DriveMississauga, OntarioL5T 1K6Tel +1 905 482 2750

USAMOBILE CLIMATE CONTROL CORP.P.O. Box 803Goshen, Indiana 46527Tel +1 574 534 1516

MOBILE CLIMATE CONTROL CORP.3189 Farmtrail RoadYork, PA 17406Tel +1 717 767 6531

MOBILE CLIMATE CONTROL CORP.27 Corporate Circle Suite 1East Syracuse, NY 13057Tel +1 315 434 1851

PolandMOBILE CLIMATE CONTROL S.P.Z.OOUl. Szwedzka 155-200 OławaTel +48 71 3013 701

ChinaNINGBO MOBILE CLIMATE CONTROL MANUFACTURING/TRADING CO., LTDNo.7 Jinxi RoadZhenhai, Ningbo, 315221Tel +86 574 863 085 77

South AfricaMCC AFRICA PTY (LTD)Unit 7B, Rinaldo Industrial Park50 Moreland Drive, Red Hill4071 DurbanTel +27 31 569 3971

VBG GROUP INTERIM REPORT JANUARY–MARCH 2019 · which we are active. We make a difference by...

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