interim report january– september 2015 - sveaskog · 2018. 3. 7. · interim report january–...

1 July – 30 September 2015• Netsalesdecreasedby2%toSEK1,284million(1,309).Deliveryvolumeswereunchangedwhiletheaveragepricewas1%lower.

• Operatingprofitfromcontinuingoperationsincreasedby34%toSEK295million(220).DeliveryvolumesfromSveaskog’sownforestsincreasedby1%withonaverageunchangedprices.EarningsincludeacapitalgainofSEK47millionrelatedtothesaleofdevelopmentland.

• ChangeinvalueofforestassetswasSEK83million(120).• Profitforthequarterrose15%toSEK260million(227).

1 January – 30 September 2015• Netsalesdecreasedby1%toSEK4,532million(4,591).Deliveryvolumeswereunchangedwhiletheaveragepricewas1%lower.

• Operatingprofitfromcontinuingoperationsincreasedby8%toSEK918million(852).DeliveryvolumesfromSveaskog’sownforestsincreasedby2%whileaveragepriceswereunchanged.

• ChangeinvalueofforestassetswasSEK515million(312).• Profitfortheperiodrose30%toSEK1,065million(821).

Q3Interim report January – September 2015

Photo: Shutterstock

Sawlog deliveries rose 3% compared with the corresponding period in the previous year.

3months 9months 12months

July–Sept Jan–Sept Oct2014– FullyearSEKm 2015 2014 % 2015 2014 % Sept2015 2014 %

Netsales 1,284 1,309 –2 4,532 4,591 –1 6,173 6,232 –1

Operatingprofitfromcontinuingoperations 295 220 34 918 852 8 1,320 1,254 5

Changeinvalueofforestassets 83 120 –31 515 312 65 1,235 1,032 20

Operatingprofit 382 353 8 1,515 1,233 23 2,700 2,418 12

Profitbeforetax 335 290 16 1,358 1,035 31 2,480 2,157 15

Profitfortheperiod 260 227 15 1,065 821 30 1,935 1,691 14

Cashflowfromoperatingactivities 214 192 11 837 702 19 904 769 18

1)Rolling12months.2)Operatingprofitbeforechangeinvalueofforestassetsminuscapitalgains onpropertysalesplusfinancialincomedividedbyfinancialexpenses.

SveaskogisSweden’sleadingforestcompanyandsellssawlogs,pulpwood,biofuel,forestseedlingsandsilviculturalservices.Sveaskogalsoworkswithlandtransactionsanddevelopstheforestasavenueforhunting,fishingandothernature-basedexperiences.TheforestanditsassetsareSveaskog’scorebusinessandsustainabledevelopmentpermeateseveryaspectofSveaskog’sactivities.SveaskogisaffiliatedwithFSC.

Jan–Sept Jan–Sept Oct2014– Fullyear 2015 2014 Sept2015 2014

Yield,%1) (targetatleast4.5%) 5.1 4.7 5.1 5.0

Netdebt/equityratio,multiple (target0.3–0.6) 0.44 0.47 0.44 0.44

Returnonoperatingcapital,%1) 10.2 9.1 10.2 9.2

Returnonequity,%1) 10.6 9.3 10.6 9.4

Interestcover,multiple1,2) 5.9 4.3 5.9 4.8

Equityratio,% 49 48 49 50

Interest-bearingnetdebt,SEKm 8,174 8,279 8,174 8,207

Averagenumberofemployees 814 836 814 877

Totaldeliveryvolume,thousandm3sub 7,947 7,948 10,838 10,838

Key figures, Group

Continued good earnings trendSveaskog’soperatingprofitfromcontinuingoperationsfortheperiodJanuary–September2015amountedtoSEK918million(852),anincreaseof8%.Deliveriesfromownforestsincreasedby2%whilepricesonaveragewereunchanged.EarningsincludeaSEK47millioncapitalgainonthesaleofdevelopmentland.Yieldamountedto5.1%(4.7).NetsalestotalledSEK4,532million(4,591).Sveaskog’stotalsalesofwoodrawmaterialamountedto7.9(7.9)millioncubicmetres(m3sub).Sawlogsalesincreasedby3%,salesofpulpwoodandchipswereunchangedwhilesalesofbiofuel

decreasedby11%.Despitethefactthatearningsincludesomenon-recur-ringitems,profitabilityincontinuingoperationsisgood,whichisgratifying.

Mixed signals in the marketDemandforsawnwoodproductswasgoodbutthereissomeoversupply.Swedishsawmillsexpectslightlyhigherproductionbutlowerexportpricesinthenextquarter.Thesawmillswerewellsuppliedwithsawlogs.Stockswererelativelyhighbutarenowshowingsignsofdecreasing.Sawlogpriceschangedmarginally. ExportlevelsforSwedishpaperpulparestable.Aspreviouslydemandforandpricesofcartonboardproductsarerisingwhiledemandforgraphicpaperproductsisfalling.TheperiodwascharacterisedbygoodavailabilityofpulpwoodandcellulosechipsinSweden.Earlierpricereductionsforpulpwoodhavelevelledout. InvestmentsintheSwedishandFinnishforestindustriesareincreasing.Metsä’sannouncedinvestmentsinÄänekoskiincentralFinland,Södra’sinvestmentsinVäröandmostrecentlySCA’sannouncedinvestmentinÖstrandindicateabeliefinthefutureandingrowthintheforestindustry.ThiswillresultinhigherdemandforwoodrawmaterialwhichispositiveforSveaskogasamajorsupplier.

National forest programme important for the industryThisautumn,workwiththeSwedishnationalforestprogrammewillstartinearnest.Thehopeisthatthiswillresultinconstructiveandassertiveguide-linesforSwedishforests.AsfarasSveaskogisconcerned,weregarditasimportantthattheprogrammeencouragestheuseofwoodinconstruction,providesgreaterclarityrelatingtoenergyandbiofuelandfacilitatesresearchintobioeconomics.

More salmon in Swedish rivers create more jobs in rural areasInSeptember,SveaskogarrangedaseminarinMörrumongrowthpotentialforsalmonfishinginSweden.H.M.KingCarlXVIGustavandtheMinisterofRuralAffairs,Sven-ErikBucht,participated.TheconclusionfromtheseminarwasthatinaninternationalperspectiveSwedenhasthepotentialtocreatemajorvaluesinthehospitalitysectorbybuildingupsalmonstocks.Thiswillcontributetogoodgrowthandprovidemorejobopportunitiesinruralareas.

Sveaskog’s employees more motivatedThisyear’semployeesurveyshowssignificantimprovementswhichishighlygratifying.Oneoftheindicators,theEmployeeMotivationIndex(MMI),increasedcomparedwithlastyearbysixpointsto70andtheLeadershipIndexrosebyeightpointsto73.ThesurveyalsoindicatesincreasedprideinworkingatSveaskogandagreaterwillingnesstorecommendotherstoapplyforjobsatSveaskog.

Per-OlofWedin,PresidentandCEO

Target4.5

0

1

2

3

4

5

Oct 2012–Sept 2013

4.75.1

Oct 2013–Sept 2014

Oct 2014–Sept 2015

3.8

Yield, %, rolling 12 months

Target0.3-0.6

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Sept 2013 Sept 2015Sept 2014

0.53

0.440.47

Net debt/equity ratio, multiple, at 30 September

Product breakdown by % of sales, rolling 12 months

Sawlogs 48%Pulpwood and chips 40%Biofuel 4%Other 8% (forest seedlings, leases, etc.)

CEO’s comments

INterIM report JaNuarY – SepteMber 2015

Theme – Sustainability

ValueTarget metric 2013 2014 2015

Employee Motivation Index (MMI)* 64 70Leadership Index 70 65 73

* New metrics from 2014.

One of Sveaskog’s targets for sustainable business is to be the preferred choice for employees and contractors. We measure this using employee and contractor surveys and we make active efforts to increase the proportion of women and employees from a non-Swedish background.

– 2 –

1 JuLY–30 SepteMber 2015

Net salesNetsalesdecreasedby2%toSEK1,284million(1,309).Totaldeliveryvolumeswereunchangedcomparedwiththecorrespondingperiodlastyearwhileaveragesellingpriceswere1%lower.Salesofwoodrawmaterialtotalled2.3(2.3)millioncubicmetres(m3sub).

earnings

Operatingprofitfromcontinuingoperationsincreasedby34%toSEK295million(220).Deliveryvolumesfromownforestsincreasedby1%whilepricesonaveragewereunchanged.EarningsincludeacapitalgainofSEK47millionrelatingtothesaleofalargeagriculturalproperty. GainsfrompropertysalesrelatedtoforestlandandstandingtimberamountedtoSEK9million(7).ShareofprofitsoftheassociateSetraGroupamountedtoSEK–5million(6).OperatingprofitbeforechangeinvalueofforestassetsamountedtoSEK299million(233).ChangeinvalueforthethirdquarterwasSEK83million(120).Theincreaseisattributabletohigherpriceeffectsinthevaluationmodel.Afterchangeinvalueofforestassets,operatingprofitamountedtoSEK382million(353). NetfinancialitemsinthequarteramountedtoSEK–47million(–63).Profitbeforetaxincreasedby16%toSEK335million(290).TaxfortheperiodamountedtoSEK–75million(–63).Profitforthequarterrose15%toSEK260million(227).

1 JaNuarY–30 SepteMber 2015

Net salesNetsalesdecreasedby1%toSEK4,532million(4,591).Salesvolumeswereunchangedbuttimberpriceswereonaverage1%lower.Salesofwoodrawmaterialtotalled7.9(7.9)millioncubicmetres(m3sub).

earnings

Operatingprofitfromcontinuingoperationsincreasedby8%toSEK918million(852).Deliveriesfromownforestswere2%higherandpriceswerelargelyunchanged.EarningsincludeaVATremissionofSEK36millionattributabletoatransferofoperationsatthebeginningofthe2000saswellasacapitalgainofSEK47millionrelatingtothesaleofalargeagriculturalproperty. GainsfrompropertysalesrelatingtoforestlandandstandingtimberamountedtoSEK55million(5). ShareofprofitsoftheassociateSetraGroupamountedtoSEK27million(64). OperatingprofitbeforechangeinvalueofforestassetsamountedtoSEK1,000million(921).ChangeinvalueofforestassetswasSEK515million(312).Theincreaseisattributabletohigherpriceeffectsinthevaluationmodelandslightlylowerfellingvolumes.Afterchangeinvalueofforestassets,operatingprofitamountedtoSEK1,515million(1,233). NetfinancialitemsamountedtoSEK–157million(–198).Profitbeforetaxincreasedby31%toSEK1,358million(1,035).TaxfortheperiodamountedtoSEK–293million(–214).Profitfortheperiodincreasedby30%toSEK1,065million(821).

– 3 –

Group performance

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5,00

1,000

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1,284

Q1-13 -14 -15

201320142015

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Net sales, SEKm

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200

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500

295

201320142015

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Operating profit from continuing operations, SEKm

Change, net sales, SEKm

Operating profit, SEKm

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200

400

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1,000

1,200

382

Q1-13 -14 -15

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201320142015

July–Sept Jan–Sept

2014 1,309 4,591Price, wood raw material –19 –43Delivery volume, wood raw material 1 –1Other –7 –15 Total –25 –592015 1,284 4,532


– 4 –

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100

200

300

400

214

Q1-13 -14 -15

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Q4-13 -14 -15

201320142015

Cash flow from operating activities, per quarter, SEKm

Cash flow, investments and financial position

CashflowfromoperatingactivitiesamountedtoSEK837million(702).Theincreaseismainlyduetoapositivechangeinworkingcapital.Investmentsinproperty,plantandequipmentamountedtoSEK258million(82)andinvestmentsinsharesamountedtoSEK1million(1).Salesofproperty,plantandequipment,primarilyforestproperties,amountedtoSEK181million(45).CashflowincludesadividendfromtheassociatecompanySetraGroupABofSEK32million. Sveaskog’sinterest-bearingnetdebtat30SeptemberamountedtoSEK8,174million(8,279).Attheendoftheperiod,theloanportfoliomostlycomprisedloansissuedunderSveaskog’sMTNprogrammeaswellasaSwedishcommercialpaperprogramme.Approximately4%oftheportfolioconsistsofbankfinancing.TheloanvolumeunderthecommercialpaperprogrammeamountedtoSEK2,721million(2,520)andisrefinancedregularly.UndertheMTNprogrammetheoutstandingvolumeat30SeptemberwasSEK4,890million(5,190).Thelowestaveragefixedinterestperiodduringthenine-monthperiodwasapproximately30months. Thenetdebt/equityratioamountedto0.44(0.47). Interestcoverfortheperiodamountedto5.7(4,3)andthegrossborrowingcostwas2.00%(2.65).

parent Company

SveaskogAB(publ.),100%ownedbytheSwedishstate,ownsandmanagesforestpropertiesandsharesinsubsidiariesandisresponsibleforGroup-widefinancing.OperatingincomeforSveaskogAB(publ.)inthefirstninemonthsoftheyearamountedtoSEK11million(10).LossafternetfinancialitemswasSEK182million(–261).TheParentCompany’scostsmainlycompriseinterestexpenses.Thecompanyhasnoemployees.

Setra Group ab

Sveaskogowns50%ofthesharesinthewoodproductscompanySetraGroupABwhichisreportedasanassociate.Shareofprofitsofassociatesisrecognisedintheconsolidatedincomestatement.NetsalesfortheperiodJanuary–SeptemberamountedtoSEK3,232million(3,162).OperatingprofitamountedtoSEK78million(192).TheearningstrendisaresultofalessfavourablemarketsituationwhichwascounteractedbyaweakerSwedishkronaandcompletedefficiencyimprovements.EarningsincludediscontinuationcostsofSEK21millionfortheplaningmillinValbo.Sveaskog’sshareofthecompany’sprofits,adjustedforintra-groupprofits,decreasedby58%forthefirstninemonthsof2015toSEK27million(64).

0

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4,000

6,000

8,000

10,000

8,174

Q1-13 -14 -15

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201320142015

Interest-bearing net debt, SEKm

Market situation and timber deliveriesSveaskogconductstradinginwoodrawmaterialinSwedenandmorethanhalfofthematerialistakenfromthecompany’sownforests.Themainproductrangeissawlogs,pulpwoodandchips,andbiofuel.MostofSveaskog’scustomersareinSwedenbuttheyexportalargeproportionoftheirproductsworldwide. TheSwedishforestindustry’slargestmarketforpaperpulp,paperandsawnwoodproductsisEuropeincludingSweden.EconomicgrowthinEuropeisincreasingwhiletherateofincreasehasslowed.GrowthanddemandremainweakinseveralEuropeancountries.TheWorldTradeOrganization(WTO)recentlylowereditsworldtradeforecastwhichithasdoneonseveralpreviousoccasions.OutsideEuropethereisuncertaintyaboutChina’seconomicsituation.Theearlierhighgrowthfigureshavebeenloweredandthereliabilityofstatisticsquestioned.IntheUS,theeconomicrecoveryhasimprovedbutataslowerratethanexpected.TheSwedisheconomyisstrengthening.

Change, operating profit from continuing operations July–Sept Jan–Sept

2014 220 852Price, own wood raw material –3 0Delivery volume, own wood raw material 4 27Change in stocks 9 –97VAT remission 0 36Capital gain development land 47 47Other 18 53 Total 75 662015 295 918


– 5 –

Oilpricesareatverylowlevelswhichshouldaffectcontinuedgrowth.ThedollarremainsstrongbuttheSwedishkronaisstrengtheningsteadily.Therehavebeenconsiderablefluctuationsinexchangerates.

SaWMILLS

ConstructioninEuropeisatastablebutstillrelativelylowlevel.IntheUS,constructionisrisingbutthechangemainlyappliestoapartmentblocks.ExportsofsawnwoodproductstotheUSfromEuropeandSwedenarerisingbutCanadaisstillbyfarthebiggestexporter.ImportsfromEastAsia,excludingChinaandJapan,havefallensomewhatfollowinganearlierrise.WoodproductpricesarefallinginChinaandEgypt.Takenoverall,thereisstillasurplusofsawnproducts. InSwedenproductionofsawnwoodproductsisatahighlevelandstockshaverisen. Swedishdemandwashighandexportshaverisen.DemandhasalsobeensurprisinglyhighinNorthAfricaandtheMiddleEastagainsttheback-groundofthepoliticaluncertaintyintheregion.TheUKisstillSweden’slargestsingleexportcountrywithgooddemandthusfar.ExportstoChinaincreasedearlieratanaverageevenratebutarenowfallingduetolowerdemandandsharplyfallingprices. Thesawmillswerewellsuppliedwithsawlogs.Rawmaterialstockshavebeenrelativelyhighbutarenowshowingsignsofdecreasing.Sawlogpriceschangedmarginally.Sveaskog’s deliveries

Sveaskogdelivered977(949)thousandm3subofsawlogsinthethirdquarterwhichis3%higherthaninthecorrespondingperiodlastyear.

puLp aND paper INDuStrY

Globally,deliveriesofpaperpulpareincreasing.Stocklevelshaverisenatproducers,inportsandatbuyers.Almost80%ofSwedishexportsgotoEuropewhereeconomicgrowthhasimprovedbutataslowrate.Thepriceoflong-fibresulphatepulphasfallensteadily.Swedishexportlevelsarelargelyunchanged. Demandforgraphicpaperproductscontinuestofall.Ontheotherhandanimprovementcanbeseenformanyotherproductssuchascartonboardforpackagingandpackagingpaper.Swedishproductionhereisatahighlevel.Intotal,theexportvolumeiscomparablewiththepreviousyear’slevel.Theperiodwascharacterisedbygoodavailabilityforpulpwoodandcellulosechips.Significantvolumesarealsoimported.Earlierpricereductionsforpulpwoodhavelevelledout.

Sveaskog’s deliveries

Sveaskogdelivered1,201(1,209)thousandm3subofpulpwoodandchipsinthethirdquarterwhichis1%lowerthaninthecorrespondingperiodlastyear.

bIoFueL MarKet

Thecontinentalpelletsmarketischaracterisedbyoversupplyandfallingprices. InSweden,energyproductionbasedonbiofuelisregionalorlocal.Demandforwood-basedbiofuelhasbeenweak.Themainreasonsareothercompetingfuelssuchaswaste,moreefficientproductionanddistributionofenergyaswellaslowelectricityprices.Productionoffellingresidues(branchesandtops)isfalling.

Sveaskog’s deliveries

Sveaskogdelivered103(122)thousandm3subofbiofuelinthethirdquarterwhichis16%lessthaninthecorrespondingperiodlastyear.

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104

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201320142015

Delivery volume biofuel, thousand m3sub

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1,200

1,600

1,202

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201320142015

Delivery volume, pulpwood and chips, thousand m3sub

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977

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201320142015

Delivery volume sawlogs, thousand m3sub


– 6 –

Group

Condensed income statement


July–Sept July–Sept Jan–Sept Jan–Sept oct 2014– FullyearSEKm 2015 2014 2015 2014 Sept 2015 2014

Netsales 1,284 1,309 4,532 4,591 6,173 6,232

Otheroperatingincome 51 6 60 27 88 55

Rawmaterialsandconsumables –326 –367 –1,188 –1,320 –1,632 –1,764

Changeininventories 41 37 –148 –23 –43 82

Otherexternalcosts –619 –623 –1,885 –1,963 –2,655 –2,733

Employeebenefitexpenses –117 –118 –385 –388 –519 –522

Depreciation –19 –24 –68 –72 –92 –96

operating profit from continuing operations 295 220 918 852 1,320 1,254

Capitalgainsfrompropertysales 9 7 55 5 118 68

Shareofprofitsofassociates –5 6 27 64 27 64

operating profit before change in value of forest assets 299 233 1,000 921 1,465 1,386

Changeinvalueofforestassets(Note1,2) 83 120 515 312 1,235 1,032

operating profit 382 353 1,515 1,233 2,700 2,418

Financialitems –47 –63 –157 –198 –220 –261

profit before tax 335 290 1,3581,035 2,480 2,157

Tax –75 –63–293 –214 –545 –466

profit for the period/year 260 227 1,065 821 1,935 1,691

Earningspershare,SEK,beforeandafterdilution 2.20 1.92 8.99 6.93 16.34 14.28

-calculatedontheaveragenumberofshares,million 118.4 118.4 118.4 118.4 118.4 118.4

Statement of comprehensive income



profit for the period/year 260 227 1,065 821 1,935 1,691

other comprehensive income

Componentsthatwillnotbereversedinprofitorloss

Actuarialgains/lossesonpensions* – – – – –108 –108

Taxonactuarialgains/losses* – – – – 24 24

Componentsthatcanbereversedinprofitorloss

Exchangedifferences 0 0 0 0 0 0

Cashflowhedges –4 –20 10 –85 –21 –116

Taxattributabletocashflowhedges 1 5 –2 19 5 26

total other comprehensive income for the period/year net after tax –3 –15 8 –66 –100 –174

total comprehensive income for the period/year 257 212 1,073 755 1,835 1,517

*Actuarialcalculationsareonlyperformedperfullyear.


– 7 –

Group

Condensed balance sheet

SEKm 30 Sept 2015 30Sept2014 31Dec2014

aSSetS (Note3)

Non-current assets

Intangibleassets 1 3 2

Property,plantandequipment

Forestland(Note1,2) 2,322 2,168 2,174

Otherproperty,plantandequipment 527 525 534

Biologicalassets–standingtimber(Note1,2) 30,843 29,672 30,344

Financialassets 499 498 503

total non-current assets 34,192 32,866 33,557

Current assets

Inventories 573 630 740

Currentreceivables,etc.,non-interestbearing 1,620 1,482 1,561

Cashandcashequivalents 1,815 1,680 1,345

total current assets 4,008 3,792 3,646

totaL aSSetS 38,200 36,658 37,203

eQuItY aND LIabILItIeS

equity 18,736 17,701 18,463

Non-current liabilities (Note3)

Interest-bearingliabilitiesandprovisions 5,794 6,543 6,536

Otherliabilitiesandprovisions 7,987 7,685 7,898

total non-current liabilities 13,781 14,228 14,434

Current liabilities (Note3)

Interest-bearingliabilities 4,195 3,417 3,016

Otherliabilities 1,488 1,312 1,290

total current liabilities 5,683 4,729 4,306

totaL LIabILItIeS 19,464 18,957 18,740

totaL eQuItY aND LIabILItIeS 38,200 36,658 37,203

Condensed statement of changes in equity

SEKm Jan–Sept 2015 Jan–Sept2014 Fullyear2014

opening equity, 1 January 18,463 17,397 17,397

Totalcomprehensiveincome 1,073 755 1,517

DividendpaidinaccordancewithAGMdecision –800 –450 –450

Closing equity at the end of the period/year 18,736 17,701 18,463


Group

Condensed statement of cash flows


operating activities

Operatingprofit 1,515 1,233 2,418

Adjustmentfornon-cashitems,etc. –614 –376 –1,236

Interestreceived 10 20 21

Interestpaid –167 –218 –267

Paidtax –179 –109 –120

Cash flow from operating activities before change in working capital 565 550 816

Changeinworkingcapital 272 152 –47

Cash flow from operating activities 837 702 769

Investing activities

Investmentsinproperty,plantandequipment –258 –82 –132

Investmentsinshares –1 –1 –1

Dividendfromassociate 32 – –

Saleofproperty,plantandequipment 181 45 194

Cash flow from investing activities –46 –38 61

Financing activities

Dividendpaid –800 –450 –450

Changeinfinancialliabilities 479 311 –190

Cash flow from financing activities –321 –139 –640

Cash flow for the period/year 470 525 190

Cash and cash equivalents, opening balance 1,345 1,155 1,155

Cash and cash equivalents, closing balance 1,815 1,680 1,345

– 8 –


Parent Company

Condensed income statement



Operatingincome 4 4 11 10 17 16

Operatingexpenses –1 6 –2 –9 2 –5

operating profit 3 10 9 1 19 11

Financialitems –63 –80 –191 –262 57 –14

profit/loss before tax –60 –70 –182 –261 76 –3

Tax 13 15 40 57 –17 0

profit/loss for the period/year * –47 –55 –142 –204 59 –3

*SameasTotalcomprehensiveincomefortheperiod/year.

Condensed balance sheet

SEKm 30 Sept 2015 30Sept2014 31Dec2014

aSSetS Non-current assets Property,plantandequipment 56 56 56total property, plant and equipment 56 56 56

Financial assets

Sharesandparticipations 24,934 24,934 24,934

Receivablesfromgroupcompanies,interest-bearing 2,410 2,310 2,410

total financial assets 27,344 27,244 27,344total non-current assets 27,400 27,300 27,400

Current assets Currentreceivables,etc.,non-interestbearing 174 86 354Receivablesfromgroupcompanies,interest-bearing 276 43 0

Cashandcashequivalents 0 0 0total current assets 450 129 354totaL aSSetS 27,850 27,429 27,754

eQuItY aND LIabILItIeS

equity 9,920 10,661 10,862

Non-current liabilities

Interest-bearingnon-currentliabilities 5,186 5,987 5,886

Otherprovisions 1 3 1total non-current liabilities 5,187 5,990 5,887

Current liabilities

Interest-bearingliabilitiesandprovisions 12,686 10,712 10,938

Otherliabilitiesandprovisions 57 66 67total current liabilities 12,743 10,778 11,005totaL eQuItY aND LIabILItIeS 27,850 27,429 27,754

– 9 –


Parent Company

Condensed statement of cash flows


Cash flow from operating activities –250 163 130

Cash flow from investing activities 1 –105 –197

Cash flow from financing activities 249 –58 67

total cash flow 0 0 0

Cash and cash equivalents, opening balance 0 0 0

Cash and cash equivalents, closing balance 0 0 0

– 10 –

Condensed statement of changes in equity


opening equity, 1 January 10,862 11,315 11,315

DividendpaidinaccordancewithAGMdecision –800 –450 –450

Profit/lossfortheperiod/year –142 –204 –3

Closing equity at the end of the period/year 9,920 10,661 10,862

aCCouNtING prINCIpLeS

TheinterimreportfortheGroupispreparedinaccordancewithIAS34InterimFinancialReportingandtheSwedishAnnualAccountsAct.FortheParentCompanytheinterimreportispreparedinaccordancewiththeAnnualAccountsAct,whichisinaccordancewiththeregulationsinRFR2AccountingforLegalEntities.TheaccountingprinciplesandcalculationprinciplesappliedinthisreportfortheParentCompanyandtheGroupareunchangedcomparedwiththemostrecentlypublishedannualreport.NeworrevisedIFRSsandinterpretationsfromIFRIChavenothadanyeffectontheearningsorfinancialpositionoftheGrouportheParentCompany. AmountsarestatedinSEKmillionunlessotherwiseindicated.Figuresinparenthesesrefertothecorrespondingperiodinthepreviousyear.

Note 1 – CHaNGe IN VaLue oF ForeSt aSSetS

Themarket-relatedvalueofSveaskog’sforestassetsat30September2015hasbeencalculatedatSEK33,165million(31,840),ofwhichSEK30,843million(29,672)comprisesthefairvalueofstandingtimberandSEK2,322million(2,168)anidentifiedcostofland.Thechangeinthebalancesheetsinceyear-end2014amountstoSEK647million(309)andisspecifiedinNote2.Theassumptionsappliedwhencalculatingthemarketvalueofstandingtimberareunchangedandupdatedatyear-end.

Note 2 – bIoLoGICaL aSSetS, StaNDING tIMber aND ForeSt LaND Standing timberSEKm CostOpeningvalue,1January2014 29,375Acquisitionofstandingtimber 4Salesofstandingtimber 16Changesduetofelling –1,029Changesinfairvalue 1,341Reclassification –35Closingvalue,30September2014 29,672

Openingvalue,1January2015 30,344Acquisitionofstandingtimber 29Salesofstandingtimber –45Changesduetofelling –1,077Changesinfairvalue 1,592Closingvalue,30September2015 30,843

Forest landSEKm Openingvalue,1January2014 2,156Acquisitionofforestland 12Salesofforestland 0Closingvalue,30September2014 2,168 Openingvalue,1January2015 2,174Acquisitionofforestland 151Salesofforestland –3Closingvalue,30September2015 2,322


– 11 –

Note 3 – MeaSureMeNt at FaIr VaLueThe table below shows the Group’s assets, liabilities and derivatives measured at fair value:

Level1 Level2 Level3 Jan–Sept Jan–Sept Jan–Sept Jan–Sept Jan–Sept Jan–SeptSEKm 2015 2014 2015 2014 2015 2014

Assets

Standingtimber 0 0 0 0 30,843 29,672Totalassets 0 0 0 0 30,843 29,672

Liabilities Non-currentliabilities 0 0 5,228 6,040 0 0Currentliabilities 0 0 4,883 3,319 0 0Derivativeinstruments 0 0 187 170 0 0Totalliabilities 0 0 9,497 9,529 0 0

Measurement techniques for level 2 fair valueLiabilitiesaremeasuredatamortisedcost.Derivativesinlevel2consistofinterestrateswapsandarerecognisedatmarketvalueorashedgeaccounting.Measurementatfairvalueofinterestrateswapsisbasedonswapratesobtainedfromafinancialinformationsystemandconvertedtoazerocouponcurveformeasurement. Comparedwith2014,noreclassificationshavetakenplacebetweendifferentlevelsinthehierarchyandnosignificantchangeshavebeenmadewithregardtomeasurementmethods,dataorassumptionsapplied.

otHer INForMatIoN

risks and uncertainties

Adescriptionofrisks,uncertaintiesandriskmanagementisprovidedinSveaskog’s2014AnnualReport(inSwedish)onpages19–21.Noothersignificantchanges,inadditiontothosementionedinthisinterimreport,haveoccurredsincepublicationoftheannualreport.

Important events after the closing date

Noimportanteventshavetakenplaceaftertheclosingdate.

related-party transactions

Nosignificantchangeshaveoccurredinrelationsortransactionswithrelatedpartiescomparedwithwhatisdescribedinthe2014AnnualReport.AdividendofSEK800millionhasbeenpaidtotheownerfollowingadecisionattheAnnualGeneralMeeting.

TheBoardofDirectorsandtheCEOherebyconfirmthatthisinterimreportprovidesatrueandfairoverviewoftheParentCompany’sandtheGroup’soperations,theirfinancialpositionandperformance,anddescribesmaterialrisksanduncertainties

facingtheParentCompanyandothercompaniesintheGroup.

Stockholm,19October2015SveaskogAB(publ.)(556558-0031)

HeleneBiström EvaFärnstrand ThomasHahn Chairman BoardMember BoardMember

JohanHallberg BirgittaJohansson-Hedberg Anna-StinaNordmarkNilsson BoardMember BoardMember BoardMember

SofiaGilliusson SturePersson EmployeeRepresentative EmployeeRepresentative Per-OlofWedin PresidentandCEO


– 12 –

For FurtHer INForMatIoN, pLeaSe CoNtaCt

Per-OlofWedin,PresidentandCEO,tel+4686559174,+46761304201PerMatses,DeputyCEOandCFO,tel+4686559290,+46706559820

www.sveaskog.se

FINaNCIaL CaLeNDarYear-endreport2015 29January2016AnnualReport2015 March2016InterimreportJanuary–March2016 26April2016

Sveaskog ab, Stockholm Torsgatan4,SE-10522Stockholm

Sveaskog ab, Kalix Torggatan4,Box315,SE-95223Kalix

[email protected]

telephone switchboard+47771787000TocontactSveaskog’semployees

telephone customer service+46771787100forquestionsaboutSveaskog’soperations

Capital turnover rateNetsalesdividedbyaverageoperatingcapital.

Equity ratioEquitydividedbytotalassets,allcalculatedattheendoftheperiod/year.

Interest-bearing net debtInterest-bearingliabilitiesminusinterest-bearingassets,allcalculatedattheendoftheperiod/year.

Interest coverOperatingprofitbeforechangeinvalueofforestassetsexcl.capitalgainsonpropertysalesplusfinancialincomedividedbyfinancialexpenses.

Net debt/equity ratioInterest-bearingnetdebtdividedbyequity.

Net earnings per shareProfitfortheperiod/yearaftertaxdividedbyaveragenumberofsharesduringtheperiod/year.

Definitions

Operating capitalTotalassetsexcludinginterest-bearingassets,taxassetsandassetsheldforsaleminusnon-interestbearingliabilitiesanddeferredtaxliabilities,allcalculatedattheendoftheperiod/year.

Operating marginOperatingprofitexpressedasapercentageofnetsales.

Operating profit from continuing operationsOperatingprofitbeforechangeinvalueofforestassets,shareofprofitsofassociatesandcapitalgainsfrompropertysales.

Return on equityProfitaftertaxexpressedasapercentageofaverageequity.

Return on operating capitalOperatingprofitdividedbyaverageoperatingcapital,excludingdeferredtax.

YieldOperatingprofitbeforechangeinvalueofforestassetsexcludingcapitalgainsonpropertysales,dividedbyaverageoperatingcapital,excludingdeferredtax.

Introduction

WehavereviewedtheinterimreportofSveaskogAB(publ)asof30September2015andthenine-monthperiodthenended.TheBoardofDirectorsandthePresidentareresponsibleforthepreparationandpresentationofthisinterimreportinaccordancewithIAS34andtheAnnualAccountsAct.Ourresponsibilityistoexpressaconclusiononthisinterimreportbasedonourreview.

Scope of review

WeconductedourreviewinaccordancewiththeInternationalStandardonReviewEngagements(ISRE)2410–ReviewofInterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity.Areviewofinterimfinancialinformationconsistsofmakinginquiries,primarilytopersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.AreviewhasadifferentfocusandissubstantiallylessinscopethananauditconductedinaccordancewithInternationalStandards

Auditor’s review

onAuditingandothergenerallyacceptedauditingpractices.Theproceduresperformedinareviewdonotenableustoobtainassurancethatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Therefore,theconclusionexpressedonthebasisofareviewdoesnotgivethesamelevelofassuranceasaconclusionexpressedonthebasisofanaudit.

Conclusion

Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheinterimreportisnotprepared,inallmaterialrespects,fortheGroupinaccordancewithIAS34andtheAnnualAccountsAct,andfortheParentCompanyinaccordancewiththeAnnualAccountsAct.

Stockholm,19October2015

DeloitteABHansWarén,AuthorisedPublicAccountant


interim report january– september 2015 - sveaskog · 2018. 3. 7. · interim report january–...

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