Changes in SCA’s financial reporting for 2014 due to new and amended reporting standards
As described in the year-end report 2013, effective January 1, 2014, SCA applies the following new and amended reporting standards: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements, and IAS 28 Investments in Associates and Joint Ventures.
These standards are applied retrospectively, which entails that the cash flows, income statements and balance sheets for 2012 and 2013 have been recalculated to reflect the changes in the new and amended reporting standards. It is mainly IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements that have affected the recalculations. The other standards are not judged to have any material impact on the Group’s or parent company’s result or financial position.
For SCA, this entails that some joint ventures have been reclassified to subsidiaries. For the joint ventures that have not been reclassified as subsidiaries the equity method is applied. A few individual companies have been classified as joint operations for which proportionate consolidation is applied.
Please find below recalculated cash flows, income statements and balance sheets for 2012 and 2013.
NB:
SCA discloses the information provided herein pursuant to the Securities Markets Act. Submitted for publication on March 10, 2014, at 08.30 CET.
For further information, please contact:
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
Boo Ehlin, Vice President Media Relations, +46 8 788 51 36
SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest owner, SCA places considerable emphasis on sustainable forest management. The Group has about 44,000 employees. Sales in 2013 amounted to approximately SEK 93bn (EUR 10.7bn). SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit www.sca.com.
| OPERATING CASH FLOW ANALYSIS | ||
| SEK m | 1312 | 1212 |
| Operating cash surplus | 14,004 | 13,068 |
| Change in working capital | -328 | 1,119 |
| Current capital expenditures, net | -3,489 | -3,272 |
| Restructuring costs, etc. | -1,294 | -988 |
| Operating cash flow | 8,893 | 9,927 |
| Financial items | -1,061 | -1,323 |
| Income taxes paid | -1,741 | -1,265 |
| Other | 161 | 102 |
| Cash flow from current operations | 6,252 | 7,441 |
| Acquisitions | -5,488 | -14,873 |
| Strategic capital expenditures, fixed assets | -1,906 | -1,971 |
| Divestments | 1,716 | 17,682 |
| Cash flow before dividend | 574 | 8,279 |
| Dividend | -3,303 | -3,089 |
| Cash flow after dividend | -2,729 | 5,190 |
| Net cash flow from disposal group | 0 | 468 |
| Net cash flow | -2,729 | 5,658 |
| Net debt at the start of the period | -33,063 | -36,820* |
| Net cash flow | -2,729 | 5,658 |
| Remeasurement to equity | 2,176 | -1,787 |
| Currency effects | -117 | -114 |
| Effect of reclassification of operating liability** | -186 | 0 |
| Net debt at the end of the period | -33,919 | -33,063 |
| Debt/equity ratio | 0.50 | 0.54 |
| Debt payment capacity, % | 38 | 38 |
| * Including disposal group | ||
| ** Provision for payroll tax has been reclassified to net debt under IAS 19. | ||
| STATEMENT OF PROFIT OR LOSS | ||||||
| SEK m | 1312 | 1212 | ||||
| Net sales | 92,873 | 89,229 | ||||
| Cost of goods sold 1) | -69,585 | -67,035 | ||||
| Gross profit | 23,288 | 22,194 | ||||
| Sales, general and administration 1) | -13,122 | -13,323 | ||||
| Items affecting comparability 2) | -1,239 | -2,614 | ||||
| Share of profits of associates | 215 | 169 | ||||
| Operating profit | 9,142 | 6,426 | ||||
| Financial items | -1,061 | -1,323 | ||||
| Profit before tax | 8,081 | 5,103 | ||||
| Tax | -2,220 | -364 | ||||
| Net profit for the period continued operations | 5,861 | 4,739 | ||||
| Net profit for the period from disposal group | 0 | 503 | ||||
| Net profit for the period | 5,861 | 5,242 | ||||
| Earnings attributable to: | ||||||
| Owners of the parent | 5,546 | 4,956 | ||||
| Non-controlling interests | 315 | 286 | ||||
| Earnings per share, SEK - owners of the parent total operations |
||||||
| - before dilution effects | 7.90 | 7.06 | ||||
| - after dilution effects | 7.90 | 7.06 | ||||
| Earnings per share, SEK - owners of the parent continued operations |
||||||
| - before dilution effects | 7.90 | 6.34 | ||||
| - after dilution effects | 7.90 | 6.34 | ||||
| Calculation of earnings per share | 1312 | 1212 | ||||
| Earnings attributable to owners of the parent | 5,546 | 4,956 | ||||
| Average no. of shares before dilution, millions | 702.3 | 702.3 | ||||
| Average no. of shares after dilution, millions | 702.3 | 702.3 | ||||
| 1) Of which, depreciation | -5,005 | -4,993 | ||||
| 2) Distribution of items affecting comparability | ||||||
| Distribution of restructuring costs, etc. per function | ||||||
| Cost of goods sold | -288 | -300 | ||||
| Sales, general and administration | -740 | -982 | ||||
| Impairment, etc. | -211 | -1,332 | ||||
| Total items affecting comparability | -1,239 | -2,614 | ||||
| Gross margin | 25.1 | 24.9 | ||||
| Operating margin | 9.8 | 7.2 | ||||
| Financial net margin | -1.1 | -1.5 | ||||
| Profit margin | 8.7 | 5.7 | ||||
| Tax | -2.4 | -0.4 | ||||
| Net margin * | 6.3 | 5.3 | ||||
| * Excluding Net profit for the period from disposal group | ||||||
| Excluding items affecting comparability: | 1312 | 1212 | ||||
| Gross margin | 25.1 | 24.9 | ||||
| Operating margin | 11.2 | 10.1 | ||||
| Financial net margin | -1.1 | -1.5 | ||||
| Profit margin | 10.1 | 8.6 | ||||
| Tax | -2.8 | -0.8 | ||||
| Net margin * | 7.3 | 7.8 | ||||
| * Excluding Net profit for the period from disposal group | ||||||
| CONSOLIDATED BALANCE SHEET | |||
| SEK m | December 31, 2013 | December 31, 2012 | |
| Assets | |||
| Goodwill | 13,785 | 12,349 | |
| Other intangible assets | 8,136 | 5,580 | |
| Tangible assets | 81,544 | 75,274 | |
| Shares and participations | 1,072 | 2,317 | |
| Non-current financial assets | 3,190 | 3,577 | |
| Other non-current receivables | 1,819 | 996 | |
| Total non-current assets | 109,546 | 100,093 | |
| Operating receivables and inventories | 31,077 | 29,736 | |
| Current financial assets | 536 | 401 | |
| Non-current assets held for sale | 32 | 1,937 | |
| Cash and cash equivalents | 3,785 | 2,118 | |
| Total current assets | 35,430 | 34,192 | |
| Total assets | 144,976 | 134,285 | |
| Equity | |||
| Owners of the parent | 63,271 | 59,706 | |
| Non-controlling interests | 4,540 | 1,993 | |
| Total equity | 67,811 | 61,699 | |
| Liabilities | |||
| Provisions for pensions | 2,548 | 4,820 | |
| Other provisions | 10,531 | 9,207 | |
| Non-current financial liabilities | 28,703 | 24,077 | |
| Other non-current liabilities | 593 | 1,022 | |
| Total non-current liabilities | 42,375 | 39,126 | |
| Current financial liabilities1) | 10,009 | 10,105 | |
| Other current liabilities | 24,781 | 23,355 | |
| Total current liabilities | 34,790 | 33,460 | |
| Total liabilities | 77,165 | 72,586 | |
| Total equity and liabilities | 144,976 | 134,285 | |
| 1)Committed credit lines amount to SEK 18 186m of which unutilized SEK 18 186m. | |||
| Debt/equity ratio | 0.50 | 0.54 | |
| Visible equity/assets ratio | 44% | 44% | |
| Return on capital employed | 10% | 8% | |
| Return on equity | 9% | 9% | |
| Excluding items affecting comparability: | |||
| Return on capital employed | 11% | 10% | |
| Return on equity | 11% | 12% | |
| Equity per share, SEK | 96 | 88 | |
| Capital employed | 101,730 | 94,762 | |
| - of which working capital | 7,740 | 7,125 | |
| Provisions for restructuring costs are included in the balance sheet as follows: | |||
| - Other provisions* | 416 | 616 | |
| - Operating liabilities | 786 | 630 | |
| *) of which, provision for tax risks | 292 | 482 | |
| Net debt | 33,919 | 33,063 | |
| Total Equity | 67,811 | 61,699 | |
| NET SALES | |||||||
| SEK m | 1312 | 1212 | 2013:4 | 2013:3 | 2013:2 | 2013:1 | |
| Personal Care | 29,736 | 29,084 | 7,578 | 7,382 | 7,475 | 7,301 | |
| Tissue | 48,096 | 43,476 | 12,357 | 11,910 | 11,930 | 11,899 | |
| Forest Products | 15,525 | 18,283 | 3,646 | 3,843 | 3,788 | 4,248 | |
| Other | 95 | 1,240 | -4 | -2 | 26 | 75 | |
| Intra-group deliveries | -579 | -2,854 | -157 | -131 | -100 | -191 | |
| Total net sales | 92,873 | 89,229 | 23,420 | 23,002 | 23,119 | 23,332 | |
| OPERATING PROFIT | |||||||
| SEK m | 1312 | 1212 | 2013:4 | 2013:3 | 2013:2 | 2013:1 | |
| Personal Care | 3,519 | 3,437 | 859 | 880 | 902 | 878 | |
| Tissue | 5,724 | 4,778 | 1,601 | 1,524 | 1,333 | 1,266 | |
| Forest Products3) | 1,843 | 1,363 | 916 | 420 | 250 | 257 | |
| Other | -705 | -538 | -213 | -199 | -207 | -86 | |
| Total operating profit 1) | 10,381 | 9,040 | 3,163 | 2,625 | 2,278 | 2,315 | |
| Financial items | -1,061 | -1,323 | -272 | -283 | -227 | -279 | |
| Profit before tax 1) | 9,320 | 7,717 | 2,891 | 2,342 | 2,051 | 2,036 | |
| Tax | -2,639 | -737 | -933 | -656 | -524 | -526 | |
| Net profit for the period from disposal group | 0 | 503 | 0 | 0 | 0 | 0 | |
| Net profit for the period 2) | 6,681 | 7,483 | 1,958 | 1,686 | 1,527 | 1,510 | |
| 1) Excluding items affecting comparability before tax amounting to: | -1,239 | -2,614 | -215 | -233 | -373 | -418 | |
| 2) Excluding items affecting comparability after tax amounting to: | -820 | -2,241 | -45 | -172 | -297 | -306 | |
| 3) Including effects of forest swaps, Forest Porducts before tax | 583 | 91 | 455 | 7 | 0 | 121 | |
| OPERATING MARGIN | |||||||
| % | 1312 | 1212 | 2013:4 | 2013:3 | 2013:2 | 2013:1 | |
| Personal Care | 11.8 | 11.8 | 11.3 | 11.9 | 12.1 | 12.0 | |
| Tissue | 11.9 | 11.0 | 13.0 | 12.8 | 11.2 | 10.6 | |
| Forest Products | 11.9 | 7.5 | 25.1 | 10.9 | 6.6 | 6.0 | |
| CONSOLIDATED INCOME STATEMENT | |||||||
| SEK m | 2013:4 | 2013:3 | 2013:2 | 2013:1 | |||
| Net sales | 23,420 | 23,002 | 23,119 | 23,332 | |||
| Cost of goods sold | -17,512 | -17,028 | -17,339 | -17,706 | |||
| Gross profit | 5,908 | 5,974 | 5,780 | 5,626 | |||
| Sales, general and administration | -2,831 | -3,424 | -3,540 | -3,327 | |||
| Items affecting comparability | -215 | -233 | -373 | -418 | |||
| Share of profits of associates | 86 | 75 | 38 | 16 | |||
| Operating profit | 2,948 | 2,392 | 1,905 | 1,897 | |||
| Financial items | -272 | -283 | -227 | -279 | |||
| Profit before tax | 2,676 | 2,109 | 1,678 | 1,618 | |||
| Taxes | -763 | -595 | -448 | -414 | |||
| Net profit for the period from disposal group | 0 | 0 | 0 | 0 | |||
| Net profit for the period | 1,913 | 1,514 | 1,230 | 1,204 | |||
Tags: