Interim report January September 2009 November 10, 2009
Summary January September 2009 Financial Revenues in Q3 increased 23 per cent to 808 MSEK (658) and for the nine months period 20 per cent to 2,391 (1,999) MSEK EBIT for Q3 increased 27 per cent to 100 MSEK (79) and for the nine months period 19 per cent to 244 (205) MSEK Profit after financial items for Q3 increased 20 per cent to 97 MSEK (81) and for the nine months period 13 per cent to 240 MSEK (212) Earnings per share amounted to 2.16 SEK (1.79) for Q3 and 5.33 (4.71) SEK for the nine months period Cash flow from operating activities was further strengthened 2
Development of the Scandinavian aftermarket Market development The Scandinavian aftermarket vs Mekonomen, YoY per quarter (value) 25% 22% 20% 15% 18% 16% 10% 8% 5% 0% 3% 2% 1% 5% 0% 0% 2% -5% -2% -3% -2% 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 Scandinavian aftermarket Mekonomen
Benchmark against top 10 Europe 2008 Mekonomen new # 1 Median top 10 * Mekonomen Gross margin 47,9% 51,1% EBIT margin 4,8% 9,3% Personnel expenses in % of net sales 22,0% 23,5% Inventories (days) 125 167 Receivables (days) 26 29 Payables (days) 69 74 Net debt / equity ratio, multiple 1,05 neg. Sales growth 5,1% 5,5% * Top 10 consists of: Mekonomen, Feu Vert, Euro Car Parts, Sørensen&Balchen, Kwik-Fit, Trost, Wessels + Müller, T.Hansen, Inter Cars and ATU.
Workshops Number of workshops 1 200 1 100 1 000 900 800 700 600 500 400 300 200 100 0 886 768 764 778 852 199 899 283 2004 2005 2006 2007 2008 Q3 2009 Mekonomen Bilverkstad Mekopartner 5
Stores Number of stores 215 190 165 189 192 193 192 194 206 215 140 115 90 65 40 15-10 2003 2004 2005 2006 2007 2008 Q3 2009 Total Own 6
Launch of new Medium and Mega units 1 2 4 3 7 5 1. Katrineholm 6 2. Täby 3. Interior Akalla 4. Akalla 5. Södertälje 6. Elverum, Norway 7. Opening of Akalla
Launch of Mekonomen branded products
Meko Mekonomen s eco-labelled products
Fleet 100 workshops one phone number: 0771-72 00 00 Companies 100 workshops one price the same price for the same job Services and repairs all brands Mekonomen has entered agreements with 32 fleet customers, with a total potential of 98 000 cars
Continued success!
Summary January September 2009 Operational Strengthened market position and revenues on a rolling 12-month basis now exceeds SEK 3,000 M The launch of the Mekonomen Mega and Medium units, with adjoining stores and workshops, is progressing according to plan and, as of 10 November 2009, we have 47 units of which 10 have been added since June 30 New affiliated service centres continue to increase and the number currently stands at 1,197, which is an increase with 146 this year Mekonomen Fleet, our corporate offering, is developing further with more customers and we currently have 32 client agreements with a potential of a total of 98,000 vehicles Mekonomen Direkt +46 (0)771-72 00 00 has been a continued success Denmark is showing a positive sales development in a weak market The first facilities in partnership with Svenska Bil were officially opened in Södertälje, Täby, Sisjön and Akalla. Also the first facility in partnership with the Volvo distributor EPS Group was opened in Kiruna. The launch of Mekonomen branded products has surpassed the salesgoals 12
Financials 13
Earnings trend SUMMARY OF THE GROUP S EARNINGS TREND Revenues, SEK M EBIT, SEK M Profit after financial items, SEK M Profit after tax, SEK M Earnings per share, SEK EBIT margin, % July September January September 12 months Full-year 2009 2008 % 2009 2008 % Oct Sept 2008 808 658 23 2,391 1,999 20 3,084 2,691 100 79 27 244 205 19 289 251 97 81 20 240 212 13 289 261 70 58 21 175 153 14 211 189 2.16 1.79 20 5.33 4.71 13 6.46 5.84 12 12 10 10 9 9 EBIT Strong marketing activities combined with excellent cost control had a positive impact on EBIT during the nine months period The project costs for achieving 60 Mekonomen Medium and Mega units amounted to 6 MSEK for the third quarter and to 22 MSEK for the nine months period. The investments amounted to 7 MSEK for the third quarter and 19 MSEK for the nine months period. Stable underlying EBIT margin 14
Sweden EARNINGS TREND July September January September 12 months Fullyear 49% Percentage of sales for the period 2009 2008 % 2009 2008 % Oct-Sept 2008 Net sales (external), SEK M 398 316 26 1,141 957 19 1,481 1,297 EBIT, SEK M 74 60 23 187 157 19 241 211 EBIT margin, % 18 18-16 16-16 16 Number of stores/of which wholly owned 129/104 115/95 - - 123/103 Number of Mekonomen Service Centres 391 349 - - 363 Number of MekoPartner 112 60 - - 75 EBIT EBIT is affected by market investments Stable underlying EBIT margin despite market investments Substantial increase in market shares 15
Norway EARNINGS TREND July September January September 12 months Fullyear 24% Percentage of sales for the period Net sales (external), SEK M EBIT, SEK M EBIT margin, % Number of stores/of which wholly owned Number of Mekonomen Service Centres Number of MekoPartner 2009 2008 % 2009 2008 % Oct-Sept 2008 184 156 18 549 475 16 704 630 33 22 50 88 63 40 101 76 18 14 16 13 14 12 46/31 44/28 - - 44/29 333 321 - - 320 50 35 - - 38 EBIT EBIT is affected by market investments Improved underlying EBIT margin despite market investments Strengthened market position 16
Denmark EARNINGS TREND July September January September 12 months Fullyear 27% Percentage of sales for the period Net sales (external), SEK M EBIT, SEK M EBIT margin, % Number of stores/of which wholly owned Number of Mekonomen Service Centres Number of MekoPartner 2009 2008 % 2009 2008 % Oct-Sept 2009 196 162 21 623 523 19 804 704 3 3 0 5 5 0-2 -2 2 2 1 1 0 0 40/40 39/39 - - 39/39 175 155 - - 169 121 67 - - 86 Underlying net sales for the third quarter increased with 10 per cent and for the nine months period with 5 per cent EBIT EBIT is affected by market investments Stable EBIT margin despite investments in new store concepts 17
Strong cash-flow CONDENSED CASH-FLOW STATEMENT (SEK M) Cash flow from operating activities before changes in working capital Cash flow from changes in working capital CASH FLOW FROM OPERATING ACTIVITIES Cash flow from investing activities Cash flow from financing activities CASH FLOW FOR THE PERIOD July September January September 12 months Full-year 2009 2008 2009 2008 Oct - Sept 2008 89 94 198 151 247 200-30 -59 2-78 89 9 59 35 200 73 336 209-15 -13-70 -45-115 -90-104 -31-188 -266-243 -321-60 -9-58 -238-22 -202 18
Appendix 19
Quarterly data QUARTERLY DATA 2009 2008 2007 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Q 4 Q 3 Q 2 Q 1 Total revenues, SEK M 808 839 744 693 658 715 626 653 626 666 606 EBIT, SEK M 100 86 57 45 79 79 48 43 78 76 53 Profit after financial items, SEK M 97 89 54 49 81 78 53 68 216 73 61 Net profit for the period, SEK M 70 65 39 36 58 56 39 65 187 52 44 EBIT margin, % 12 10 8 7 12 11 8 7 13 11 9 Earnings per share, SEK 2.16 1.98 1.20 1.13 1.79 1.72 1.20 2.13 8.90 1.62 1.34 20
Income statement CONDENSED INCOME STATEMENT (SEK M) July September January September 12 months Fullyear 2009 2008 % 2009 2008 % Oct-Sept 2008 Net sales 780 637 22 2 333 1 966 19 3 013 2 646 Other operating revenue 28 21 33 58 33 76 71 45 TOTAL REVENUES 808 658 23 2 391 1 999 20 3 084 2 691 OPERATING EXPENSES Goods for resale -374-309 21-1 145-982 17-1 480-1 317 Other external costs -139-118 18-419 -326 29-549 -456 Personnel expenses -184-146 26-553 -461 20-724 -633 Depreciation of fixed assets -11-7 57-31 -24 29-41 -34 EBIT 100 79 27 244 205 19 289 251 Interest income 1 4-75 4 10-60 7 12 Interest expense -1-3 -67-4 -6-33 -6-8 Other financial items -3 1-400 -3 3-200 0 7 PROFIT AFTER FINANCIAL ITEMS 97 81 20 240 212 13 289 261 Tax -26-23 13-66 -59 12-78 -72 NET PROFIT FOR THE PERIOD 70 58 21 175 153 14 211 189 21
Balance sheet CONDENSED BALANCE SHEET (SEK M) ASSETS 30 September 2009 30 September 2008 31 December 2008 Intangible assets 271 232 254 Tangible fixed assets 142 104 119 Financial fixed assets 24 10 26 Deferred tax assets 3 1 3 Inventories 631 591 602 Current receivables 398 379 326 Cash and cash equivalents and short-term investments 27 51 85 Properties held for sale 3 8 7 TOTAL ASSETS 1,499 1,376 1,423 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity 828 805 851 Long-term liabilities 40 44 42 Current liabilities 631 527 530 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 1,499 1,376 1,423 22
Largest shareholders 2009-09-30 % of capital and votes Axel Johnson AB with affiliated companies 29,0 AFA Försäkring 9,3 Fraim-Påhlman Eva 6,6 Swedbank Robur fonder 4,0 Lannebo fonder 3,8 SEB fonder 3,7 Fraim-Sefastsson Ing-Marie 3,2 Fjärde AP-fonden 3,0 Nordea fonder 2,9 Other 34,5 Total 100,0 23