Interim report for the first quarter of 1999 April 30, 1999 1, 300499 Result, Q 1 1999
Group Highlights High level of activity and a good result for Construction and Contracting. A good quarter for Interior Layout with increased activity in Sweden as for postponed projects in Norway. The restructuring of the Laminated Timber division has given results, but is not The international price level for timber is not satisfactory, especially not for pine. 2, 300499 Result, Q 1 1999
Group Profit and Loss Account NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 811,8 576,3 3027,3 Operating costs 793,9 570,3 2974,6 Operating profit 17,9 6,0 52,7 Profit, associated comp. 0,2 2,9 3,7 Financial items, net -11,9-8,4-33,6 Pre-tax profit 6,2 0,5 22,8 Provision for taxes 1,5 0,0 3,9 Net profit 5,1 0,5 19,1 3, 300499 Result, Q 1 1999
Group Balance Sheet NOK mill. Jan-Mar Year 1999 1998 1998 Assets: Fixed assets 950,2 575,0 932,1 Current assets 1098,3 755,0 964,8 Equity and liabilities: Equity 643,9 443,1 629,8 Interest bearing debt 836,6 480,2 711,6 Interest free debt 568,0 406,7 555,5 Total 2048,5 1330,0 1896,9 4, 300499 Result, Q 1 1999
Group Cash Flow Statement NOK mill. Jan-Mar Year 1999 1998 1998 Net cash flow from: Operations -89,1-108,6 78,8 Investment -9,0-13,3-105,1 Financing 76,7 124,5 49,9 Net cash flow for the period -21,4 2,6 23,6 Liquid funds 14,6 15,0 36,2 Unutilized drawing rights 257,6 160,0 345,0 Available liquid funds 272,2 175,0 381,2 5, 300499 Result, Q 1 1999
Group Key Figures Jan-Mar Year 1999 1998 1998 Net operating margin, % 2,2 1,0 1,7 Gross operating margin, % 5,6 4,3 4,8 Earnings per share, NOK 0,06 0,01 0,22 Cash flow per share, NOK 0,36 0,27 1,31 Capital employed, MNOK 1466 908 1261 Return on capital employed, % 6,0 2,7 4,1 Equity ratio, % 31,5 33,3 33,2 Investments, fixed assets, MNOK *) Additional investments as a result of acquisitions amounts to MNOK 342. 6, 300499 Result, Q 1 1999
Main shareholders Den norske Bank ASA 37,1 % Peder Chr. Løvenskiold 9,4 % Atle AB 6,1 % SND Invest AS 5,2 % Vestviken Skogeierforening 4,7 % AB Westergyllen 2,6 % Glommen Fond AS 1,5 % Tine Pensjonskasse 1,4 % Västra Skogsägarna 1,3 % Nedre Glommen Skogeierforening 1,2 % Storebrand Livsforsikring 1,0 % 7, 300499 Result, Q 1 1999
Business areas Industrier ASA Other businesses EuroTimber AS EuroWood AS Interior Layout Division Laminated Timber Division Construction and Contracting Mjøsbruket AS Kværnum Bruk AS Eidsvoll AS List AB Nordia AS Regional offices MOCON AS 66 % Div. Moelv Div. Splitkon Div. Agder Hako AS Byggsystem AB Dalaträ AB * Eidsvold Værk AS * Valåsen AB Notnäs AB * Knappåssågen AB Norsälven AB Ransbysågen AB Treinteriør AS * Eidsvold Værk AS * Valåsen AB Notnäs AB * Värmlands Trä AB Component AB *) involved in both sawmills and processing Eurowand AB Regional offices Töreboda Limträ AB 66 % Holzleimbau GmbH 66 % Laminated Timber Structures Ltd 57 % Limtræ Danmark AS 40 % Div. Lilleheden Div. LNJ Div. Øresø Hako Nord AS 70 % Elektro AS Engineering AS UJ-Trading AB 8, 300499 Result, Q 1 1999
Consolidation - time structure LNJ Limtræ AS Øresø Limtræ AS Limtræ Danmark AS (40 %) Notnäs AB and Westwood AB Rosén & Co AB AS and Agder Limtre AS Byggsystem AS 9, 300499 Result, Q 1 1999
Business Areas Operating revenues Jan-Mar Year NOK mill 1999 1998 *1998 Timber 401,6 220,5 1309,0 Wood 138,0 94,5 547,4 Interior Layout 118,4 112,5 476,9 Laminated Timber 101,4 83,0 434,6 Construction and contracting 152,2 115,6 557,2 Other businesses 15,5 10,7 79,2 -elimination -115,3-60,5-377,0 Group total 811,8 576,3 3027,3 *) Including Westwood AB (Group) and Notnäs AB from May 1st. 10, 300499 Result, Q 1 1999
Business Areas Operating profit Jan-Mar Year NOK mill 1999 1998 *1998 Timber 1,0 2,8 4,5 Wood 2,0 2,7 15,0 Interior Layout 9,9 7,3 42,1 Laminated Timber -1,3-6,0-0,4 Construction and contracting 13,9 6,6 19,2 Other businesses -7,6-7,4-27,7 Group total 17,9 6,0 52,7 *) Including Westwood AB (Group) and Notnäs AB from May 1st. 11, 300499 Result, Q 1 1999
Business Areas Cash flow from operations Jan-Mar Year NOK mill 1999 1998 1998* Timber 13,8 9,9 46,5 Wood 5,3 5,1 29,0 Interior Layout 11,1 8,0 45,6 Laminated Timber 3,5-1,5 15,3 Construction and contracting 15,1 8,3 24,9 Other businesses -4,9-5,9-15,7 Group total 43,9 23,9 145,6 *) Including Westwood AB (Group) and Notnäs AB from May 1st. 12, 300499 Result, Q 1 1999
Pro-forma Operating revenue and income Operating revenues Operating profit Jan-Mar Year Jan-Mar Year NOK mill 1999 *1998 *1998 1999 *1998 *1998 Timber 402 353 1519 1-17 -14 Wood 138 151 652 2 4 17 Other areas 272 307 1170 15 0 23 Group total 812 811 3341 18-13 26 *) Pro-forma, as if Westwood and Notnäs had belonged to the Group for the entire period. 13, 300499 Result, Q 1 1999
Timber Highlights Considerable improvement within the companies acquired during 1998. Operating profit at 1998 level for the rest of the Division. Very weak international prices for 14, 300499 Resultat, Result, 1. Q tertial 1 1999 1998
Timber Key Figures NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 401,6 220,5 1309,0 Operating profit 1,0 2,8 4,5 Depreciation 12,8 7,1 42,0 Cash flow 13,8 9,9 46,5 Gross operating margin, % 3,4 4,5 3,6 Investments 6,1 6,8 48,5 Number of employees 686 440 690 15, 300499 Result, Q 1 1999
mnok 35 30 25 20 15 10 5 0 Timber Operating profit per quarter -5 95 96 97 98 99 16, 300499 Result, Q 1 1999
1000 m 3 1300 1200 1100 1000 900 800 700 600 500 Timber Inventory levels 90 92 94 96 98 99 Inventory, spruce Inventory, pine 17, 300499 Result, Q 1 1999
Timber Margin development SEK 1000 800 600 400 200 0 90 92 94 96 98 99 Spruce, margin Pine, margin 18, 300499 Result, Q 1 1999
Wood Highlights Moderate demand due to seasonal High level of production. Focus on improved service concepts rather than development of production 19, 300499 Resultat, Result, 1. Q tertial 1 1999 1998
Wood Key Figures NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 138,0 94,5 547,4 Operating profit 2,0 2,7 15,0 Depreciation 3,3 2,4 14,0 Cash flow 5,3 5,1 29,0 Gross operating margin, % 3,8 5,4 5,3 Investments 0,2 2,3 16,1 Number of employees 288 160 300 20, 300499 Result, Q 1 1999
mnok 10 Wood Operating profit per quarter 5 0 97 98 99-5 21, 300499 Result, Q 1 1999
Interior Layout Highlights Increased deliveries to the Swedish Some major projects in the Norwegian market has been postponed. Profit of NOK 3 mill resulting from sale Order backlog slightly higher than one 22, 300499 Resultat, Result, 1. Q tertial 1 1999 1998
Interior Layout Key Figures NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 118,4 112,5 476,9 Operating profit 9,9 7,3 42,1 Depreciation 1,2 0,7 3,5 Cash flow 11,1 8,0 45,6 Gross operating margin, % 9,4 7,1 9,6 Investments 0,0 0,3 17,9 Number of employees 457 425 464 23, 300499 Result, Q 1 1999
mnok 20 Interior Layout Operating profit per quarter 15 10 5 0-5 97 98 99 24, 300499 Result, Q 1 1999
NOK billion 55 50 45 40 35 30 25 20 15 10 Investment Commercial buildings 88 89 90 91 92 93 94 95 96 97 p- 98 p- 99 New buildings, N Refurbishment, N New buildings, S Refurbishment, S p- 00 25, 300499 Result, Q 1 1999
Laminated Timber Highlights Improved results through structural changes, but profit still not at satisfactory level. Increased operating revenue results from 100 % consolidation of Increased demand for laminated 26, 300499 Resultat, Result, 1. Q tertial 1 1999 1998
Laminated Timber Key Figures NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 101,4 83,0 434,6 Operating profit -1,3-6,0-0,4 Depreciation 4,8 4,5 15,7 Cash flow 3,5-1,5 15,3 Gross operating margin, % 3,5-1,8 3,5 Investments 1,9 1,8 8,8 Number of employees 350 341 326 27, 300499 Result, Q 1 1999
mnok 5 Laminated Timber Operating profit per quarter 0 97 98 99-5 28, 300499 Result, Q 1 1999
Construction and Contracting Highlights High level of activity within most areas. Changes in Byggsystem AB have given effect. The spin off of Byggsystem AS increases focus on module based systems. Continued growth for electrical Satisfactory order backlog with exception 29, 300499 Resultat, Result, 1. Q tertial 1 1999 1998
Construction and Contracting Key Figures NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 152,2 115,6 557,2 Operating profit 13,9 6,6 19,2 Depreciation 1,2 1,7 5,7 Cash flow 15,1 8,3 24,9 Gross operating margin, % 9,9 7,2 4,5 Investments 1,1 2,8 6,6 Number of employees 398 370 459 30, 300499 Result, Q 1 1999
Construction and Contracting Operating profit per quarter mnok 15 10 5 0 97 98 99-5 31, 300499 Result, Q 1 1999
Other businesses Key Figures NOK mill. Jan-Mar Year 1999 1998 1998 Operating revenues 15,5 10,7 79,2 Operating profit -7,6-7,4-27,7 Depreciation 2,7 1,5 12,0 Cash flow -4,9-5,9-15,7 Investments 2,5 0,3 5,8 Number of employees 47 40 59 32, 300499 Result, Q 1 1999