Financial position

Assets and capital employed

The Group’s total assets increased 5% compared with the preceding year, amounting to SEK 154,266m (147,016). Non-current assets increased SEK 5,023m compared with the preceding year to SEK 112,121m (107,098), of which property, plant and equipment amounted to SEK 51,673m (48,482) and intangible assets to SEK 55,028m (53,121). Current and strategic capital expenditures in non-current assets amounted to SEK 6,781m. Total depreciation and amortization for the year was SEK 6,175m, of which amortization of acquisition-related intangible assets amounted to SEK 732m.

Current assets increased SEK 2,227m to SEK 42,145m (39,918). Working capital amounted to SEK 7,568m (5,901). Capital employed was 7% higher and totaled SEK 109,303m (102,037). The distribution of capital employed per currency is shown in the table below.

The value denominated in SEK of the Group’s foreign net assets amounted to SEK 65,679m at year-end. In 2017, the Group’s foreign net assets totaled SEK 65,389m.

Equity

The Group’s equity increased by SEK 5,329m during the period, to SEK 54,899m (49,570). Net profit for the period increased equity by SEK 8,552m. Equity decreased by SEK 4,435m on account of the dividend to shareholders. Equity decreased net after tax by SEK 861m as a result of fair value measurement of pension assets and updated assumptions and assessments that affect the valuation of the pension liability. Fair value measurement of financial instruments increased equity by SEK 77m after tax. Exchange rate movements, including the effect of hedges of net foreign investments, after tax, increased equity by SEK 1,976m. Other items increased equity by SEK 20m.

Financing

The Group’s interest-bearing gross debt amounted to SEK 54,326m (54,838) at year-end. The maturity period was 3.5 (4.3) years.

Net debt increased by SEK 1,937m compared with the same point in time last year and amounted to SEK 54,404m. Excluding pension liabilities, net debt amounted to SEK 50,263m. Net cash flow reduced net debt by SEK 1,307m. Fair value measurement of pension assets and updated assumptions and assessments that affect measurement of the net pension liability, together with fair value measurement of financial instruments, increased net debt by SEK 1,042m. Exchange rate movements increased net debt by SEK 2,202m.

Key figures

The debt/equity ratio was 0.99 (1.06). Excluding pension liabilities, the debt/equity ratio was 0.92 (0.99). The visible equity/assets ratio was 31% (29). The adjusted return on capital employed was 12.0% (14.9). The adjusted return on equity was 18.0% (21.3). The capital turnover rate was 1.1 (1.2). At year-end, working capital amounted to 6% (5) of net sales.

Consolidated capital employed by currency, SEKm

 

2018

%

2017

%

2016

%

EUR

43,678

40

40,937

40

25,016

33

USD

20,304

19

18,020

18

14,419

19

CNY

16,865

15

15,550

15

13,402

18

MXN

5,505

5

4,621

5

4,309

6

GBP

5,325

5

5,119

5

4,306

6

Other

17,626

16

17,790

17

13,301

18

Total

109,303

100

102,037

100

74,753

100

Consolidated balance sheet

SEKm

2018

2017

2016

Intangible assets

55,028

53,121

26,918

Property, plant and equipment

51,673

48,482

47,494

Other non-current assets

5,420

5,495

3,878

Total non-current assets

112,121

107,098

78,290

Current assets

42,145

39,918

35,994

Total assets

154,266

147,016

114,284

Equity

54,899

49,570

39,580

Non-current liabilities

57,795

60,828

41,971

Current liabilities

41,572

36,618

32,733

Total equity and liabilities

154,266

147,016

114,284

Working capital

7,568

5,901

4,143

Capital employed

109,303

102,037

74,753

Net debt

54,404

52,467

35,173

Net debt and debt payment capacity

Net debt and debt payment capacity (bar chart)

Adjusted return on capital employed and equity1)

Adjusted return on capital employed and equity (line chart)

1) Excluding items affecting comparability.

Capital employed, share of Group

Capital employed, share of Group (pie chart)