Interim Report
January – September 2016
Orio AB
Q3
3rd Quarter of 2016
Net sales for the third quarter of 2016 amounted to MSEK 198 (232), a decrease by
15 percent compared with the corresponding quarter of the previous year.
Operating profit for the quarter amounted to MSEK 12 (28). Operating margin was
6 percent (12).
Result for the period during the quarter amounted to MSEK 10 (21), which
corresponds to earnings per share of MSEK 0.05 (0.11).
Cash flow from operating activities during the quarter amounted to MSEK 26 (21).
January – September 2016
Net sales for the period January – September 2016 amounted to MSEK 627 (716),
a decrease by 12 percent compared with the corresponding period of the previous
year.
Operating profit for the period amounted to MSEK 30 (70). Operating margin was
5 percent (10).
Result for the period amounted to MSEK 25 (55), which corresponds to earnings
per share of MSEK 0.13 (0.28).
Cash flow from operating activities during the period amounted to MSEK 48 (44).
MSEK
Net sales
Q 3 2016
Q 3 2015 Changes %
Q 1-3
2016
Q 1-3
2015 Changes %
Full year
2015
Last 12
months
198
232
-15%
627
716
-12%
935
846
82
82
0%
242
282
-14%
356
316
41%
35%
-
39%
39%
-
38%
37%
12
28
-57%
30
70
-57%
-88
-128
6%
12%
-
5%
10%
-
-9%
-15%
10
21
-52%
25
55
-55%
-82
-112
Result per share
0,05
0,11
-55%
0,13
0,28
-54%
-0,41
-0,56
Equity/assets ratio (%)
Gross profit
Gross profit (%)
Operating profit/loss
Operating profit/loss (%)
Result for the period
81%
82%
-
81%
82%
-
78%
81%
Cash flow from operating
activities
26
21
24%
48
44
9%
58
62
Average no. of empolyees
268
317
-15%
270
329
-18%
321
300
1
Interim Report
January – September 2016
Orio AB
Q3
A WORD FROM THE CEO
Decreased net sales but improved gross margin
The change in net sales during the third quarter of 2016 compared with the
corresponding quarter of 2015 could not confirm the trend shift in sales performance,
which I mentioned in the previous interim report. Net sales for the Group decreased
by 15 percent compared to the corresponding quarter of the previous year. At the
same time, we saw improved gross margins in all market segments except Great
Britain, which shows the importance of having a balanced product mix in order to
achieve good profitability in sales. Measures for improving gross margin, which have
been initiated during the year, have contributed to an improved gross margin for the
Group as a whole.
The launch of Orio Parts, our range of service and wear-and-tear parts for 26 car
makes, have been initiated in Germany and will continue in Sweden and in other
selected markets within the next few months.
Market trends and results
Net sales for the third quarter of 2016 amounted to MSEK 198, which is a decrease
by 15 percent compared to the corresponding quarter of the previous year. Adjusted
for currency exchange rate effects, the decrease was 13 percent.
Gross profit for the third quarter of 2016 was MSEK 82, which is unchanged compared
to the corresponding quarter of the previous year. Gross margin during the quarter
was 41 percent, compared with 35 percent during the corresponding quarter of 2015.
For the third quarter of 2016, Orio reports an operating result of MSEK 12, and a net
result of MSEK 10. During the quarter, cash flow from operating activities was MSEK
26, largely affected by improved working capital. The financial position continues to
be strong, with an equity ratio of 81 percent.
The business and our strategy
The group’s strategy is to expand product and service range within spare parts as
well as within logistics, in parallel with broadening the customer base. From the outset
of Orio’s existing structural capital, we have recently taken several important
development steps in order to execute on the strategy and strengthen our
competitiveness. Examples of these are the establishment of the two parts distribution
centres in Europe, structural changes in the USA, the launch of a broader product
range, the expansion of the dealership network and smarter customer solutions in
digital platforms. During the year, we have continued with this development work,
aiming at creating new values for existing and newly acceding customers of our
network, while alongside moving forward with restructuring our base of operating
expenses.
Stockholm, 27 October 2016
Jonas Tegström
CEO
2
Interim Report
January – September 2016
Orio AB
Q3
Financial development
Net sales
MSEK
MSEK
300
1 200
250
1 000
200
800
150
600
100
400
50
200
Q1 Q2 Q3 Q4 Q1 Q2 Q3
201 5 201 5 201 5 201 5 201 6 201 6 201 6
Qua rte r
July – September 2016
The Group's net sales for the third quarter of 2016 amounted to MSEK 198 (232),
which is a decrease by 15 percent compared with the corresponding quarter of the
previous year. The Group’s net sales are exposed to effects from exchange rate
changes for foreign currencies, primarily the American Dollar and the British Pound,
in relation to the Swedish Krona. At unchanged foreign currency exchange rates,
compared with the corresponding quarter last year, the Group would have reported
net sales of MSEK 201, which would have been a decrease by 13 percent.
January – September 2016
The Group's net sales for the period January - September 2016 amounted to MSEK
627 (716), which is a decrease by 12 percent compared with the corresponding period
of the previous year. At unchanged foreign currency exchange rates, compared with
the corresponding period last year, the Group would have reported net sales of MSEK
637, which would have been a decrease by 11 percent.
3
Interim Report
January – September 2016
Orio AB
Q3
Gross profit
MSEK
MSEK
150
600
125
500
100
400
75
300
50
200
25
100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
201 5 201 5 201 5 201 5 201 6 201 6 201 6
Qua rte r
R12
July – September 2016
The Group’s gross profit for the third quarter of 2016 amounted to MSEK 82 (82),
which is unchanged compared with the corresponding quarter of the previous year.
Gross margin for the quarter was 41 percent (35).
January – September 2016
The Group’s gross profit for the period January – September 2016 amounted to MSEK
242 (282), a decrease by 14 percent compared with the corresponding period of the
previous year. Gross margin for the period was 39 percent (39).
Operating profit/loss
MSEK
40
- 40
Q1 Q2 Q3 Q4 Q1 Q2 Q3
201 5 201 5 201 5 201 5 201 6 201 6 201 6
- 80
- 120
- 160
*The operating result for Q4 2015 included
Qua rte r
items affecting comparability of MSEK 145.
July – September 2016
The Group's operating profit for the third quarter of 2016 amounted to MSEK 12 (28).
The operating margin for the quarter was 6 percent (12).
January – September 2016
The Group's operating profit for the period January – September of 2016 amounted
to MSEK 30 (70). The operating margin for the period was 5 percent (10).
4
Interim Report
January – September 2016
Orio AB
Q3
Result for period
July – September 2016
The Group’s result for the third quarter of 2016 amounted to MSEK 10 (21), which
corresponds to earnings per share of MSEK 0.05 (0.11).
The result for the third quarter of 2016 includes financial items in the amount of
MSEK 2 (-1), and income tax expenses amounting to MSEK -4 (-6).
January – September 2016
The Group’s result for the period January – September 2016 amounted to MSEK 25
(55), which corresponds to earnings per share of MSEK 0.13 (0.28).
The result for the period includes financial items in the amount of MSEK 3 (0), and
income tax expenses amounting to MSEK -8 (-14).
Cash flow and investments
The Group’s cash flow from operating activities for the period January – September
2016 amounted to MSEK 48 (44).
The Group’s cash flow from investing activities for the period January – September
2016 amounted to MSEK -5 (-7).
The Group’s cash flow from financing activities for the period January – September
2016 amounted to MSEK -15 (-35), which comprised of dividend paid to the
shareholder.
The Group’s cash flow for the period January – September 2016 amounted to MSEK
28 (2).
Financial Position
The Group’s liquid assets on September 30, 2016 amounted to MSEK 260 (2015-1231: 230).
The equity ratio in the Group on September 30, 2016 was 81 percent (2015-12-31:
78).
Personnel
The average number of employees in the Group during the period January –
September 2016 amounted to 270 (329). The number of employees at 30 September
2016 was 254 (2015-12-31:278).
During the quarter, Orio has appointed Mikael Brate as the new CFO of the Group.
Mikael, who most recently has had a position as CFO of Motala Verkstad Group and
before that as CFO of CTT Systems AB (publ), took office on October 10, 2016.
5
Interim Report
January – September 2016
Orio AB
Q3
Segment information
NORDIC COUNTRIES
MSEK
Q 3 2016
Q 3 2015 Changes %
Q 1-32016
Q 1-3
2015 Changes %
Full year
2015
Last 12
months
Net sales
55
67
-18%
179
203
-12%
265
241
Gross profit
30
36
-17%
98
116
-16%
148
130
55%
54%
55%
57%
56%
54%
Gross profit (%)
Net sales for the market segment Nordic countries decreased by 18 percent in the
third quarter of 2016 compared with the corresponding quarter of the previous year
and amounted to MSEK 55 (67). The change in net sales for the quarter was not
significantly affected by currency exchange rate changes.
The gross profit for the third quarter of 2016 decreased by 17 percent compared with
the corresponding quarter of the previous year and amounted to MSEK 30 (36). The
gross margin was 55 percent (54).
AMERICA
MSEK
Q 3 2016
Q 3 2015 Changes %
Q 1-32016
Q 1-3
2015 Changes %
Full year
2015
Last 12
months
Net sales
55
60
-8%
165
177
-7%
236
224
Gross profit
20
13
54%
51
51
0%
67
68
36%
22%
31%
29%
28%
30%
Gross profit (%)
Net sales for the market segment America for the third quarter of 2016 decreased by
8 percent compared with the corresponding quarter of the previous year and
amounted to MSEK 55 (60). Adjusted for currency exchange rate effects, net sales
decreased by 9 percent.
The gross profit for the third quarter of 2016 increased by 54 percent compared with
the corresponding quarter of the previous year and amounted to MSEK 20 (13). The
gross margin was 36 percent (22).
GREAT BRITAIN
MSEK
Net sales
Gross profit
Gross profit (%)
Q 3 2016
28
7
25%
Q 3 2015 Changes %
26
7
27%
8%
0%
Q 1-32016
81
21
26%
Q 1-3
2015 Changes %
83
24
29%
-2%
-13%
Full year
2015
Last 12
months
107
31
29%
105
27
26%
Net sales for the market segment Great Britain increased by 8 percent in the third
quarter of 2016 compared with the corresponding quarter of the previous year and
amounted to MSEK 28 (26). Adjusted for currency exchange effects, net sales
increased by 22 percent.
The gross profit for the third quarter of 2016 was unchanged compared with the
corresponding quarter of the previous year and amounted to MSEK 7 (7). The gross
margin was 25 percent (27).
6
Interim Report
January – September 2016
Orio AB
Q3
OTHER MARKETS
MSEK
Q 3 2016
Q 3 2015 Changes %
Q 1-32016
Q 1-3
2015 Changes %
Full year
2015
Last 12
months
Net sales
60
79
-24%
202
253
-20%
327
276
Gross profit
25
26
-4%
72
91
-21%
110
91
42%
33%
36%
36%
34%
33%
Gross profit (%)
Net sales for the market segment Other markets decreased by 24 percent in the third
quarter of 2016 compared with the corresponding quarter of the previous year and
amounted to MSEK 60 (79). The change in net sales for the third quarter was not
significantly affected by currency exchange rate changes.
The gross profit for the third quarter of 2016 decreased by 4 percent compared with
the corresponding quarter of the previous year and amounted to MSEK 25 (26). The
gross margin was 42 percent (33).
Parent company
The Parent company’s net sales for the period January – September 2016 amounted
to MSEK 484 (597). The gross result for the period amounted to MSEK 177 (232) and
the gross margin was 37 percent (39).
The Parent company’s operating profit for the period January – September 2016
amounted to MSEK 36 (68), and the profit margin was 7 percent (11).
The Parent company’s profit for the period January – September 2016 amounted to
MSEK 31 (53) and cash flow for the period was MSEK 14 (0).
At 30 September 2016, liquid assets in the Parent company were MSEK 187 (201512-31: 171) and the equity ratio was 86 percent (2015-12-31:84). The Parent
company has a commercial credit and security element of MSEK 50. The credit was
unused at 30 September 2016.
The average number of employees in the Parent during the period January –
September 2016 was 215 (276).
Other significant information
Events during the quarter
There have been no significant events taking place during the quarter.
Events after the end of the quarter
At an Extra General Meeting held on October 27, 2016, Erik Tranaeus was elected
new Board Member. He replaced Michael Thorén, who resigned for the Board.
Significant Risks and Factors of Uncertainty
Detailed information about the Group's risks, uncertainties and other factors can be
read in Orio's annual report for 2015.
7
Q3
Interim Report
January – September 2016
Orio AB
There have not been any significant changes in the Group's risks, uncertainties and
other factors during the period January – September 2016.
Financial objectives and outlook
The group's objective is to create growth of an average of 6 percent per year.
Transactions with related parties
Transactions with related parties are stated in Note 32 of Orio's annual report for 2015.
No significant changes have occurred in relationships or transactions with related
parties compared with those described in the annual report for 2015.
Upcoming financial information
Year-end report January – December 2016:
Annual report 2016:
8 February 2017
31 March 2017
If you have any questions regarding Orio's interim report, please contact:
Jonas Tegström, CEO, Tel. +46 (0)155-24 40 09
Mikael Brate, CFO, Tel +46 (0)155-24 41 20
8
Interim Report
January – September 2016
Orio AB
Q3
The Board of Directors and the CEO hereby confirm that this interim report provides
a true and fair overview of the Parent Company’s and the Group’s operations, their
financial position and performance, and describes material risks and uncertainties
facing the Parent Company and other companies in the Group.
Stockholm, October 27, 2016
_____________________
Håkan Erixon
Chairman
_____________________
Charlotte Hansson
Member
____________________
Catrina Ingelstam
Member
_____________________
Jan Jakobsen
Employee representative
____________________
Hans Krondahl
Member
_____________________
Monica Lingegård
Member
____________________
Ingemar Sandberg
Employee representative
_____________________
Erik Tranaeus
Member
____________________
Jonas Tegström
CEO
9
Interim Report
January – September 2016
Orio AB
Q3
Auditor’s review report of interim financial information
prepared in accordance with IAS 34 and Ch. 9 of the
Swedish Annual Accounts Act.
Introduction
We have reviewed the interim report of Orio AB as of 30 September 2016 and the ninemonth period then ended. The Board of Directors and the CEO are responsible for the
preparation and presentation of this interim report in accordance with IAS 34 and the
Annual Accounts Act. Our responsibility is to express a conclusion on this interim report
based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review
Engagements (ISRE) 2410 – Review of Interim Financial Information Performed by the
Independent Auditor of the Entity. A review of interim financial information consists of
making inquiries, primarily to persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review has a different focus and is
substantially less in scope than an audit conducted in accordance with International
Standards on Auditing and other generally accepted auditing practices. The procedures
performed in a review do not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Therefore, the conclusion
expressed on the basis of a review does not give the same level of assurance as a conclusion
expressed on the basis of an audit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
interim report is not prepared, in all material respects, for the Group in accordance with IAS
34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual
Accounts Act.
Stockholm, 27 October 2016
PricewaterhouseCoopers AB
Martin Johansson
Authorised Public Accountant
10
Interim Report
January – September 2016
Orio AB
Q3
Group’s statement of comprehensive income
MSEK
Q 3 2016 Q 3 2015
Q 1-3
2016
Q 1-3
2015
Full year
2015
Last 12
months
198
232
627
716
935
846
-116
-150
-385
-434
-579
-530
Gross profit
82
82
242
282
356
316
Sales costs
-57
-42
-176
-172
-240
-244
Administration costs
-14
-15
-41
-42
-57
-56
1
3
5
2
-147
-144
12
28
30
70
-88
-128
2
-1
3
0
-5
-2
Net sales
Cost of goods sold
Other operating income and
expenses
Operating profit/loss
Financial items
-
-
-
-1
-1
-
Result after financial items
14
27
33
69
-94
-130
Income tax expense
-4
-6
-8
-14
12
18
Result for the period
10
21
25
55
-82
-112
-1
3
-2
6
8
-
Deferred taxes referred to cash flow hedges
-
-1
-
-1
-2
-
Currency exchange rate difference for the year
-
1
-1
2
0
-3
Comprehensive income for the period
9
24
22
62
-76
-115
Parent company shareholders
9
24
22
62
-76
-115
Total result related to Parent
shareholders
9
24
22
62
-76
-115
0,05
0,11
0,13
0,28
-0,41
-0,56
Result from associates
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Cash flow hedges
Result for the year relates to:
Result per share based on net profit attributable to
parent company shareholders during the year:
11
Interim Report
January – September 2016
Orio AB
Q3
Group’s balance sheet
2016-09-30
2015-09-30
2015-12-31
Intangible non-current assets
42
58
40
Tangible non-current assets
68
79
76
-
1
-
58
44
66
1
2
2
Total non-current assets
169
184
184
Inventories
218
381
269
Accounts receivable
88
111
84
Current tax receivables
17
-
11
1
-
1
Other current receivables
14
12
16
Prepaid expense and accrued income
13
16
7
Cash and bank
260
221
230
Total current assets
611
741
618
TOTAL ASSETS
780
925
802
632
762
625
6
6
5
Provisions
25
24
35
Non-current liabilities
12
13
12
Accounts payable
40
52
40
1
-5
1
3
3
0
Other current liabilities
13
18
24
Accrued expence and prepaid income
48
52
60
780
925
802
50
50
50
8
18
17
MSEK
Note
ASSETS
Investments in associates
Deferred tax receivables
Other non-current receivables
Derivatives
2
EQUITY AND LIABILITIES
Equity
Deferred Tax Liabilities
Current tax liabilities
Derivatives
TOTAL EQUITY AND LIABILITIES
Assets pledged
Contingent liabilities
2
12
Interim Report
January – September 2016
Orio AB
Q3
Group’s report on changes in equity
MSEK
Balance at 01-01-2015
Additional
Share capital paid in capital
Reserves
Total equity
attributable to
the
shareholder
Retaind
of parent
earnings
company
0,2
-
4,1
730,9
735,2
Result for the period
-
-
-
54,9
54,9
Other comprehensive income
-
-
6,7
-
6,7
Total comprehensive income
-
-
6,7
54,9
61,6
Dividend to shareholder
-
-
-
-35,0
-35,0
Balance at 30-09-2015
0,2
-
10,8
750,8
761,8
Balance at 01-01-2015
0,2
-
4,1
730,9
735,2
-81,5
-81,5
Result for the period
Other comprehensive income
-
-
6,3
-
6,3
Total comprehensive income
-
-
6,3
-81,5
-75,2
Dividend to shareholder
-
-
-
-35,0
-35,0
Balance at 31-12-2015
0,2
-
10,4
614,4
625,0
Balance at 01-01-2016
0,2
-
10,4
614,4
625,0
Result for the period
-
-
-
24,6
24,6
Other comprehensive income
-
-
-2,5
-
-2,5
Total comprehensive income
-
-
-2,5
24,6
22,1
Dividend to shareholder
-
-
-
-15,0
-15,0
Balance at 30-09-2016
0,2
-
7,9
624,0
632,1
13
Interim Report
January – September 2016
Orio AB
Q3
Group’s statement on cash flows
MSEK
Q 3 2016
Q 3 2015
Q 1-3
2016
Q 1-3
2015
Full year
2015
OPERATING ACTIVITIES
Result after financial items
14
27
33
69
-93
Non-cash items, etc.
9
-6
3
12
193
Change in provisions
-1
-9
-10
-21
-24
2
-6
-6
-21
-23
Cash flow from operating activities before change in
working capital
24
6
20
39
53
Change in inventories
15
17
53
18
-6
4
-1
-3
-17
9
Change in current liabilities
-17
-1
-22
4
2
Cash flow from operating activities
26
21
48
44
58
-
-
-
-
-
Acquisitions of intangible non-current assets
-2
-1
-4
-6
-8
Investments in tangible non-current assets
-0
-0
-1
-1
-1
-
-
-
0
0
-2
-1
-5
-7
-9
Borrowings
-
-
-
-
-
Dividend to shareholder
-
-
-15
-35
-35
Cash flow from financing activities
-
-
-15
-35
-35
24
20
28
2
14
235
202
230
217
217
1
-1
2
2
-1
260
221
260
221
230
Income tax paid
Change in current receivables
INVESTING ACTIVITIES
Acquisitions of subsidiaries and other business units
Change in other non-current receivables and investments
Cash flow from investment activities
FINANCING ACTIVITIES
CASH FLOW FOR THE PERIOD
Liquid assets at beginning of the period
Currency exchange effect in liquid assets
Liquid assets at end of period
14
Interim Report
January – September 2016
Orio AB
Q3
Group key ratios
MSEK
Gross profit (%)
Operating profit/loss (%)
EBITDA (MSEK)
Equity
Q 3 2016 Q 3 2015
Q 1-3
2016
Q 1-3
2015
Full year
2015
Last 12
months
41%
35%
39%
39%
38%
37%
6%
12%
5%
10%
-9%
-15%
16
32
42
82
-73
-112
632
762
632
762
625
632
Return on equity (%)
-
-
-
-
-12%
-16%
Return on average capital employed (%)
-
-
-
-
-13%
-18%
81%
82%
81%
82%
78%
81%
26
21
48
44
58
62
-
-
-
-
1,71
1,77
Equity/assets ratio (%)
Cash flow from operating activities
Rate of inventory turnover (times)
Definitions
Gross margin (%)
Operating margin (%)
EBITDA
Return on equity (%)
Average adjusted equity
Return on average capital employed
(%)
Capital employed
Equity/assets ratio (%)
Cash flow from operating activities
Inventory turnover rate (times)
Gross profit/loss as a percentage of net sales
Operating profit/loss as a percentage of net sales
Operating profit/loss before financial income and expense,
taxes, write-offs and any write-downs of tangible and
intangible fixed assets
Profit/loss after tax as a percentage of average adjusted equity
Average reported shareholders' equity plus untaxed reserves
after deduction for deferred tax at the current rate of tax.
Profit/loss after financial items plus financial expenses as a
percentage of the average capital employed
Total assets less non-interest bearing liabilities and noninterest bearing provisions, including deferred tax liabilities
Adjusted equity as a percentage of total assets
Result after financial items, adjusted for non cash flow items,
changes in provisions, income taxes paid, and changes in
working capital
Cost of sold inventory divided by average inventory
15
Interim Report
January – September 2016
Orio AB
Q3
Reconciliation of group key ratios
Return on equity (%)
Q3 2016
Q3 2015
Q1-3 2016
Q1-3 2015
Full year
2015
Last 12
months
10
21
25
55
-82
-112
Opening equity
623
738
625
735
735
762
Closing equity
632
762
632
762
625
632
Average equity
628
750
629
749
680
697
-
-
-
-
-12%
-16%
Q3 2016
Q3 2015
Q1-3 2016
Q1-3 2015
Full year
2015
Last 12
months
14
27
33
69
-94
-130
0
-1
-1
-2
-5
-4
Opening total assets
787
923
802
930
930
925
Opening provisions
30
43
40
57
57
30
Opening accounts payable and other
payables
122
129
125
134
134
120
Closing total assets
780
925
780
925
802
780
Closing provisions
31
30
31
30
40
31
Closing accounts payable and other
payables
105
120
105
120
125
105
Average capital employed
640
763
640
757
688
710
-
-
-
-
-13%
-18%
Q3 2016
Q3 2015
Q1-3 2016
Q1-3 2015
Full year
2015
Last 12
months
Equity
632
762
632
762
625
632
Total assets
780
925
780
925
802
780
81%
82%
81%
82%
78%
81%
Q3 2016
Q3 2015
Q1-3 2016
Q1-3 2015
Full year
2015
Last 12
months
Cost of sold goods
116
150
385
434
579
530
Opening inventory
241
395
269
409
409
381
Closing inventory
218
381
218
381
269
218
Average inventory
230
388
244
395
339
300
-
-
-
-
1,71
1,77
MSEK
Result for the period
Return on equity (%)
Return on average capital employed (%)
MSEK
Result after financial items
Financial expenses
Return on average capital employed
(%)
Equity/assets ratio (%)
MSEK
Equity/assets ratio (%)
Inventory turnover rate, times
MSEK
Inventory turnover rate, times
16
Interim Report
January – September 2016
Orio AB
Q3
Parent company’s income statement
MSEK
Q 3 2016
Q 3 2015 Q 1-3 2016 Q 1-3 2015
Full year
2015
Last 12
months
Net sales
160
190
484
597
772
659
Costs of goods sold
-96
-122
-307
-365
-483
-425
Gross profit
64
68
177
232
289
234
Sales costs
-35
-19
-109
-112
-150
-147
Administration costs
-14
-15
-41
-42
-57
-56
5
-3
9
-10
-124
-105
20
31
36
68
-42
-74
3
-
3
2
-30
-29
23
31
39
70
-72
-103
Other operating income and expenses
Operating profit/loss
Financial items
Result after financial items
Change in untaxed reserves
-
-
-
-
3
3
Income tax expense
-4
-7
-8
-17
19
28
Result for the period
19
24
31
53
-50
-72
Comprehensive result for the period
19
24
31
53
-50
-72
There are no other items that must be reported in comprehensive income. This means that the profit for
the period coincides with this comprehensive result for the period.
17
Interim Report
January – September 2016
Orio AB
Q3
Parent company’s balance sheet
MSEK
2016-09-30
2015-09-30
2015-12-31
Intangible non-current assets
18
16
16
Tangible non-current assets
58
67
65
Participation in group companies
3
34
3
Investments in associates
-
1
-
52
24
59
1
1
1
Total non-current assets
132
143
144
Inventories
179
318
216
40
50
38
178
158
158
14
-
3
Other current receivables
4
1
2
Prepaid expense and accrued income
7
11
6
ASSETS
Deferred tax receivables
Other non-current receivables
Accounts receivable
Receivables from group companies
Current tax receivables
Cash and bank
187
156
171
Total current assets
609
694
594
TOTAL ASSETS
741
837
738
616
703
600
Untaxed reserves
24
27
24
Provisions
23
20
28
Accounts payable
32
40
35
Liabilities to group companies
2
2
1
Current tax liabilities
-
-2
-
Other current liabilities
6
5
7
38
42
43
741
837
738
50
50
50
6
18
16
EQUITY AND LIABILITIES
Equity
Accrued expence and prepaid income
TOTAL EQUITY AND LIABILITIES
Assets pledged
Contingent liabilities
18
Interim Report
January – September 2016
Orio AB
Q3
Parent company’s report on changes in equity
MSEK
Balance at 01-01-2015
Share capital*
Additional paid
in capital
Reserves
Retaind
earnings
Total equity
0,2
0,0
392,5
291,9
684,6
Result for the period
-
-
-
53,0
53,0
Dividend to shareholder
-
-
-
-35,0
-35,0
Balance at 30-09-2015
0,2
0,0
392,5
309,9
702,6
Balance at 01-01-2015
0,2
0,0
392,5
291,9
684,6
Result for the period
-
-
-
-49,9
-49,9
Dividend to shareholder
-
-
-
-35,0
-35,0
Balance at 31-12-2015
0,2
0,0
392,5
207,0
599,7
Balance at 01-01-2016
0,2
0,0
392,5
207,0
599,7
Result for the period
-
-
-
31,2
31,2
Dividend to shareholder
-
-
-
-15,0
-15,0
Balance at 30-09-2016
0,2
-
392,5
223,2
615,9
* Number of shares is 200.
19
Interim Report
January – September 2016
Orio AB
Q3
Parent company’s cash flow statement
MSEK
Q 3 2016 Q 3 2015
Q 1-3
2016
Q 1-3
2015
Full year
2015
OPERATING ACTIVIITES
Result after financial items
23
30
39
70
-72
Non-cash items, etc
3
-7
8
8
182
Change in provisions
-1
-9
-7
-21
-24
Income tax paid
-4
-5
-12
-17
-15
Cash flow from operating activities before change in
working capital
21
9
28
40
71
Change in inventories
20
18
35
32
15
Change in current receivables
-4
-6
-17
-32
-23
Change in current liabilities
-17
-8
-9
-2
-3
Cash flow from operating activities
20
17
37
42
60
-
-
-3
-
-
-2
-1
-5
-6
-8
INVESTING ACTIVITIES
Acquisition of shares in subsidiaries
Investments in intangible non-current assets
Investments in tangible non-current assets
-
-
-0
-1
-0
Change in other non-current receivables and investments
-
0
-
0
0
-2
-1
-8
-7
-8
Borrowings
-
-
-
-
-
Dividend to shareholder
-
-
-15
-35
-35
Cash flow from financing activities
-
-
-15
-35
-35
18
16
14
0
17
168
141
171
155
155
1
-1
2
1
-1
187
156
187
156
171
Cash flow from investing activities
FINANCING ACTIVITIES
CASH FLOW FOR THE PERIOD
Liquid assets at beginning of the period
Currency exchange effect in liquid assets
Liquid assets at end of period
20
Interim Report
January – September 2016
Orio AB
Q3
Notes and accounting principles
Note 1 Accounting principles
This interim report has been prepared in accordance with the Annual Accounts Act
and IAS 34 – Interim reporting. The Group’s consolidated accounts have been
prepared in accordance with the Annual Accounts Act, RFR 2 Supplementary
accounting standards for Groups, and International Financial Reporting Standards
(IFRS) as adopted by the EU. The Parent company’s accounts have been prepared
in accordance with RFR 2, Accounting for legal entities and the Annual Accounts Act.
The interim report for the parent company has been prepared in accordance with the
Annual Accounts Act, Chapter 9, Interim report. The accounting principles applied are
the same as applied in the preparation of the latest Annual report, if not otherwise
stated below. These have been published on the Company’s web site, www.orio.com.
New IFRS standards effective from 1 January 2016 have not had any significant
impact on the Group’s financial reports.
Note 2 Valuation at fair value
The Group’s financial instruments are recognized at cost, except for derivative
financial instruments, which are recognized at fair value. The Group uses various
methods to determine the fair value financial instruments depending on the degree of
observable market data in the valuation and the activity in the market. The methods
are divided in three different levels:
• Level 1: Unadjusted, quoted price of identical assets and liabilities on an active
market
• Level 2: Adjusted, quoted price or valuation model with valuation parameters derived
from an active market
• Level 3: Valuation model where a majority of valuation parameters are nonobservable and based on internal assumptions.
The table below shows the Group's financial instruments valued at fair value on 30
September 2016 and 31 December 2015. Financial assets at fair value through profit
or loss comprise short term investments which in the Group’s and the Parent
company’s balance sheet are recognized in liquid assets.
21
Interim Report
January – September 2016
Orio AB
Q3
Level 1
MSEK
Level 2
Level 3
2016-09-30 2015-12-31 2016-09-30 2015-12-31 2016-09-30 2015-12-31
Assets
Derivative instruments
-
-
1,2
0,7
-
-
Financial assets
99,6
71,1
-
-
-
-
Total assets
99,6
71,1
1,2
0,7
-
-
Derivative instruments
-
-
2,7
0,2
-
-
Total liabilities
-
-
2,7
0,2
-
-
Liabilities
22