Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company, Group eliminations and also parts of the Group’s operations undergoing restructuring; BE Group Czech Republic, BE Group Slovakia, BE Group Produktion Eskilstuna and RTS Estonia.

The restructuring of these operations, approved by the Board of BE Group partly in the first quarter of 2016 and in the second quarter of 2017, are completed. The exit from remaining business in Prerov, Czech Republic, is in all material aspects completed. In total, the operations under restructuring had sales of SEK 0 M (15) in the first quarter with an underlying operating result of SEK 0 M (-1).

The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been distributed to the two business areas.

Sales for the first quarter for the Parent Company, BE Group AB (publ), amounted to SEK 27 M (26) during the period and derived from intra-Group services. These intra-Group services mainly include licensing fees regarding the subsidiaries’ use of the BE Group brand and central expenses for IT, Finance and Purchasing, etc. These expenses are distributed and invoiced to all subsidiaries in the Group. In the result follow-up of the business areas, these intra-group expenses have been eliminated. Out of the total costs for the Parent Company, of SEK 14 M (14), SEK 11 M (11) was distributed to the subsidiaries. Operating result amounted to SEK 13 M (13).

Net financial items for the quarter amounted to SEK -11 M (-18). Profit before tax increased to SEK 2 M (-5) and profit after tax amounted to SEK 0 M (-4). Investments in the Parent Company amounted to SEK 0 M (0). At the end of the period, cash and equivalents in the Parent Company increased to SEK 127 M (5).

Group

Net financial items and tax

The Group´s consolidated net financial items in the first quarter amounted to SEK -6 M (-4), of which net interest accounted for SEK -6 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-)

Taxes for the first quarter amounted to SEK -8 M (-12). Profit after tax amounted to SEK 20 M (39).

Cash flow

The Group´s consolidated working capital amounted to SEK 568 M (554) at the end of the period and the average working capital tied-up for the first quarter was 11.8 percent (10.7). Cash flow from operating activities increased to SEK 62 M (-1), of which SEK 20 M is an effect of the implementation of IFRS 16. Cash flow from investing activities was SEK -15 M (-6). Cash flow after investments therefore amounted to SEK 47 M (-7).

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 237 M (139) and the interest-bearing net debt excl. IFRS 16 was SEK 418 M (504). Equity amounted to SEK 922 M (852) at the end of the period.

Organization, structure and employees

The number of employees amounted to 661 compared with 675 at the same time last year. The average number of employees during the quarter amounted to 664 (670).

The Group´s cash flow from operating activities, SEK M