Year end report 2000 HL Display AB (publ)

Year end report of 2000 HL Display AB (publ) * Consolidated sales rose by 13.7 per cent to SEK 873.9 m (768.5). * Profit before tax totalled SEK 44.1 m (47.1). * Proposed dividend SEK 1.40 (1.30) per share. Year end report of 2000 Sales and earnings The Group's net sales amounted to SEK 873.9 m (768.5), an increase of 13.7 per cent compared to 1999. Of HL Display's total sales, 84 per cent consists of exports. During the fourth quarter, sales amounted to SEK 231.4 m (200.5). The December sales developed very weakly, amounting to SEK 12 m below expectations. As a consequence, the forecast published in October, of net sales of SEK 880 m and profit before tax of around SEK 50 m for year 2000, could not be reached. The full year 2000 profit before tax was SEK 44.1 m (47.1). The fourth quarter profit was SEK 8.1 m (5.7). The funds allocated to the Group from the pension insurance company SPP, were reported in full according to the notice from SPP. This has increased the Group's accumulated profit by a total of SEK 4.5 m. Earnings were negatively affected by SEK 8.6 m by the sharp rise in prices for the Group's primary raw material, PVC, relative to 1999. Compared to 1999, exchange rate effects increased profit before tax by SEK 2.5 m. Market The European market is undergoing a consolidation process through mergers and acquisitions, in many cases across national borders. In the resulting large chains that are emerging, profiling and display purchasing decisions are moved higher up in the organisations. Through HL Display's new Key Account Management-organisation, along with TM the newly launched Merchandising concept Optishop , the demands of these customers can be met. These actions have been taken to position HL Display as the market leader within the merchandising sector in Europe. TM The introduction of this organisation and the marketing of Optishop has, despite a positive growth in sales, taken longer than expected, and is not yet finished. There is a large future sales potential within the area of merchandising as HL Display is breaking new ground in Europe. Acquisitions and sales No new acquisitions or sales of companies were made during the year. New subsidiaries have been founded in Singapore and Ukraine. The Asian market will be approached from Singapore. Investments The year's net investments in fixed assets amounted to SEK 58.1m (67.9), out of which SEK 0 m (8.5) is attributable to acquisitions. Investments include capitalised lease contracts of SEK 1.1 m (12.1). Depreciation according to plan during the year amounted to SEK 40.2m (31.3). Financial position Liquid funds increased during the year as a result of increased borrowing and amounted to SEK 31.2m (22.9) on December 31. The equity/assets ratio was 47.6 per cent, compared with 51.6 per cent at year-end 1999. Prospects for 2001 The change process that the company is pursuing has taken longer than expected. Nevertheless the long term goals for growth and profitability over time remain. HL Display should increase sales by at least 20 per cent per year on average over a business cycle, with an average net margin of 10-15 per cent. For 2001 higher profits can be expected, although not in line with the long-term goal. Share data Earnings per share after full tax amounted to SEK 3.48 (4.20). Shareholders' equity per share at the end of the year was SEK 31.07 (28.89). The total number of shares outstanding is 7,688,872. Personnel The average number of employees during the year was 773 (706), and the number of employees on December 31 was 805 (713) Dividend, AGM and Annual Report The Board proposes a dividend for 2000 of SEK 1.40 (1.30) per share. th The Annual General Meeting will be held the 19 of March. at 4:00 p.m., at Industrihuset, Storgatan 19, Stockholm. The annual report for 2000 will be distributed during week 7. Key figures for the Group SEK (000s) Jan - Dec Jan - Change in Jan -Dec 2000 Dec per cent 1998 1999 Net sales 873 921 768 451 + 13.7 646 646 Operating profit 47 731 55 401 -13.8 69 042 Profit before tax 44 095 47 125 -6.4 70 969 Profit margin % 5.0 6.1 -18.0 11.0 Equity/asset ratio, % 47.6 51.6 -7.8 52.0 Investments, SEK m 58.1 67.9 -14.4 63.6 Return on capital, % 11.0 12.9 -14.7 21.9 Return on shareholders' 11.6 15.3 -24.2 24.5 equity, % Shareholders' equity per 31.07 28.89 + 7.5 26.00 share, SEK Earnings per share after 4.13 4.41 -6.3 6.65 standard tax, SEK Earnings per share after 3.48 4.20 -17.1 5.81 full tax, SEK Summary of consolidated income statement Jan - Dec Jan - Dec Change in Jan - Dec SEK (000s) 2000 1999 percent 1998 Net sales 873 921 768 451 + 13.7% 646 646 Cost of goods sold -494 366 -415 643 + 18.9% -317 326 Gross profit 379 555 352 808 + 7.6% 329 320 Selling expenses -196 190 -167 185 + 17.3% -147 669 Administrative expenses -113 752 -105 641 + 7.7% -91 412 Development expenses -26 902 -24 581 + 9.4% -21 197 Other income/cost 5 020 - - - Operating profit 47 731 55 401 -13.8% 69 042 Financial income and expenses -3 636 -8 276 - 1 927 2) Profit before tax 44 095 47 125 -6.4% 70 969 3) Tax -17 348 -14 848 16.8% -26 325 Net profit 26 747 32 277 -17.1% 44 644 Summary of consolidated balance sheet SEK (000s) December 31,December 31, 1999 December 31, 1998 2000 Fixed assets 186 099 168 241 131 584 Current assets 315 701 262 131 253 053 Total assets 501 800 430 372 384 637 Shareholders' equity 238 919 222 168 199 887 Provisions 16 997 14 051 18 167 Long-term liabilities 93 727 71 207 56 391 Current liabilities 152 157 122 946 110 192 Total shareholders' 501 800 430 372 384 637 equity and liabilities Summary of consolidated cash flow statement 4) Jan -Dec Jan -Dec Jan -Dec SEK (000s) 2000 1999 1998 Operating profit 47 731 55 401 69 042 Depreciation 40 197 31 255 25 520 the Other items not included in cash 1 818 -4 598 15 752 flow Interest income, paid 1 530 1 425 2 248 Interest expenses, paid -7 550 -4 923 -3 556 Income tax, paid -11 471 -29 007 -27 296 Change in working capital -20 648 -2 259 -45 588 Cash flow from operations 51 607 47 294 36 122 Cash flow from investments -58 600 -57 367 -71 713 Cash flow from financing, dividend etc 15 296 -4 623 13 198 Change in liquid funds 8 303 -14 696 -22 393 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/01/23/20010123BIT00750/bit0001.doc http://www.bit.se/bitonline/2001/01/23/20010123BIT00750/bit0002.pdf