VBG GROUP INTERIM REPORT JANUARY–SEPTEMBER 2017 · VBG GROUP INTERIM REPORT JANUARY–SEPTEMBER 2017 1 Third quarter of 2017: • Consolidated sales increased 114.6 per cent, or

VBG GROUPINTERIM REPORTJANUARY–SEPTEMBER2017

17Q3VBG Group AB (publ) in Vänersborg is the Parent Company of an international engineering Group with wholly owned companies in Europe, North America, Brazil, South Africa, Australia, India and China. The Group’s operations are divided into four divisions – VBG Truck Equipment, Edscha Trailer Systems, Mobile Climate Control and Ringfeder Power Transmission – with products that are marketed under strong, well-known brands. VBG Group AB’s Series B share was introduced on the stock exchange in 1987 and is listed today on the Nasdaq Stockholm Mid Cap list.

SEK 2,265 MConsolidated sales more than doubled to SEK 2,265.0 M (1,079.2) for the first nine months of the year.

12.5%Operating margin was 12.5 per cent (14.0) for the first nine months of the year.

VBG GROUP INTERIM REPORT JANUARY–SEPTEMBER 2017

1

Third quarter of 2017:• Consolidated sales increased 114.6 per cent, or

SEK 384.0 M, to SEK 719.2 M (335.2), of which the Mobile Climate Control division, which was acquired in November 2016, accounted for SEK 357.4 M of the increase.

• Operating profit rose to SEK 81.7 M (51.7), with a margin of 11.4 per cent (15.4), of which SEK 34.6 M pertained to Mobile Climate Control.

• Profit after financial items amounted to SEK 75.1 M (50.5), with a profit margin of 10.4 per cent (15.1).

• The Group’s profit after tax amounted to SEK 53.2 M (40.0).

• Earnings per share totalled SEK 2.13 (3.20).

First nine months of 2017:• Consolidated sales increased 109.8 per cent,

SEK 1,185.8 M, to SEK 2,265.0 M (1,079.2), of which SEK 1,088.1 M pertained to Mobile Climate Control.

• Operating profit rose to SEK 282.9 M (151.5), with a margin of 12.5 per cent (14.0), of which SEK 107.6 M pertained to Mobile Climate Control.

• Profit after financial items amounted to SEK 263.0 M (146.4), with a profit margin of 11.6 per cent (13.6).

• The Group’s profit after tax amounted to SEK 189.8 M (111.3).

• Earnings per share totalled SEK 8.43 (8.90).

INTERIM REPORTJANUARY–SEPTEMBER 2017

KEY FIGURES

Group, SEK M Q3 2017 Q3 2016 9 months 2017 9 months 2016 Full-year 2016

Net sales 719.2 335.2 2,265.0 1,079.2 1,543.9

Operating profit before items affecting comparability 81.7 51.7 282.9 151.5 196.7

Operating margin, % 11.4 15.4 12.5 14.0 12.7

Items affecting comparability — — — — –12.71

Reported operating profit 81.7 51.7 282.9 151.5 184.0

Reported operating margin, % 11.4 15.4 12.5 14.0 11.9

Profit after financial items 75.1 50.5 263.0 146.4 168.2

Profit margin, % 10.4 15.1 11.6 13.6 10.9

Profit after tax 53.2 40.0 189.8 111.3 120.8

Return on capital employed (ROCE), % — — 11.0 18.0 12.7

Return on equity (ROE), % — — 14.0 15.8 12.7

Equity/assets ratio, % 53.0 71.1 53.0 71.1 29.12

Earnings per share, SEK 2.13 3.20 8.43 8.90 9.60

Average number of outstanding shares during the period (‘000) 25,004 12,502 22,504 12,502 12,502

1 Negative SEK 7.9 M pertaining to acquisition-related costs attributable to the acquisition of Mobile Climate Control, and negative SEK 4.8 M pertaining to costs for an action programme to increase profitability in Ringfeder Power Transmission.

2 The acquisition balance pertaining to Mobile Climate Control was updated during the first quarter of 2017, meaning the consolidated Balance Sheet at 31 December 2016 was also updated.


2

THIS IS THE VBG GROUP

VBG Group AB (publ) in Vänersborg is the Parent Company of

an international engineering Group with wholly owned com-

panies in the USA, Canada, India, Brazil, China, Australia,

South Africa and nine countries in Europe. The Group’s opera-

tions are divided into four divisions — VBG Truck Equipment,

Edscha Trailer Systems, Mobile Climate Control and Ringfeder

Power Transmission — with products that are marketed under

strong, well-known brands. VBG Group AB’s Series B share

was introduced on the stock exchange in 1987 and is listed

today on the Nasdaq Stockholm Mid Cap list.

Vision

We are number one or two globally in the industrial niches in

which we are active. We make a difference by creating the

products and services of the future.

Business concept

The VBG Group will, within selected product and market seg-

ments, acquire, own and develop industrial companies in busi-

ness-to-business commerce with strong brands and good

growth potential. Based on a long-term commitment and with

a focus on growth and profitability, the VBG Group’s share-

holders will be offered attractive value growth.

Goals

• > 10 per cent in average annual sales growth over a five-

year period, of which 5 per cent attributable to actual

organic growth and 5 per cent to structural growth.

• > 12 per cent in average operating margin rolling five years.

Strategies

The Parent Company, VBG Group AB, is responsible for the

strategic governance of the Group as a whole. This entails the

approval and follow-up of divisional targets and strategies,

providing support in the form of industrial expertise and iden-

tifying and conducting strategic acquisitions. Furthermore, the

Parent Company is responsible for allocating capital, strategic

HR and IT work and the operation of all shared IT systems.

Strategies for the divisions:

• Strong brands and leading market positions in selected niches.

• High customer value in the products.

• Diversified customer base.

• International expansion.

Stable ownership situation

The VBG Group’s principal owners comprise three foundations

that were established by the Group’s founder, Herman Kreft-

ing. This ownership structure has historically provided us with

a high degree of financial stability, which in turn has resulted

in solid total returns for shareholders.

VBG GROUP IN THE WORLD

Own companies Importers/Agents

The VBG Group has 25 wholly owned companies in 16 countries and more than 1,400 employees in 18 countries worldwide.


3

SALES BY DIVISION SALES BY MARKET

Sweden, 8%

Other Nordic countries, 6%

Germany, 15%

Other European countries, 18%

North America, 45%

Brazil, 2%

Australia/New Zealand, 2%

Rest of world, 4%

VBG Truck Equipment, 27%

Edscha Trailer Systems, 9%

Mobile Climate Control, 48%

Ringfeder Power Transmission, 16%

This is the VBG Group, cont.

DIVISIONS

VBG TRUCK EQUIPMENT

By virtue of its own strong brands, the division is an interna-tionally leading supplier of coupling equipment for trucks with heavy trailers, where the division accounts for more than 50 per cent of the global market via the Ringfeder and VBG brands. The division also has Onspot – automatic tyre chains with a world-leading position in its niche.

EDSCHA TRAILER SYSTEMS

By virtue of its own strong brands, the division is an interna-tionally leading supplier of equipment for trailers. The division accounts for more than 40 per cent of the global market for sliding roofs via the Edscha Trailer Systems and Sesam brands.

BRANDS

Our divisions

RINGFEDER POWER TRANSMISSION

By virtue of its own strong brands, the division is a recognised global market leader in selected niches within mechanical power transmission and energy and shock absorption. The division’s brands are Ringfeder, Tschan, Henfel and Gerwah. The customers are found in such widely disparate industrial markets as construc-tion, machinery, power and mining.

MOBILE CLIMATE CONTROL

By virtue of its own strong brand, the division is an industry- leading supplier of complete climate control systems (HVAC systems) to commercial motor vehicles, primarily in North America and Europe. The customers are mainly found in four market segments: buses, off-road vehicles, utility vehicles and defence vehicles.

VBG Truck Equip-ment and Mobile Climate Control have ambitious plans for organic growth and are using the favourable situ-ation and their strong resources to establish opera-tions in new markets, and also to gain market shares.


4

VBG Truck Equipment – establishes operations in Brazil and China

The healthy operating margin of just over 18 per cent reported

by VBG Truck Equipment in the third quarter is slightly lower

than the previous year, but this is not a result of deteriorating

profitability in operating activities, but rather because the divi-

sion used resources to establish operations in Brazil and China.

Intensive work is also ongoing within VBG Truck Equipment

in respect of product development and digitisation of sales

and marketing. The division finds itself in a strong market

situation and in such a position it is important to invest in

the future.

Edscha Trailer Systems – profitability trend broken

but rebound expected

In the third quarter, Edscha Trailer Systems broke its

distinguished profitability trend, which was, of course,

a little disappointing. One reason for the decrease in

profitability was lower capacity utilisation in pro-

duction at the division, compared with the year’s

earlier quarters. Edscha Trailer Systems also strug-

gled with delivery problems from two of its key

suppliers, which gave rise to additional costs.

However, I believe the measures implemented

by the division will result in a return to better

profitability already in the next quarter.

TIME TO INVESTIN THE FUTURE


5

Mobile Climate Control – favourable position for

investments in the future

During the year, Mobile Climate Control has employed several

people in both sales and product development, to further

enhance its already strong ability to offer customised solu-

tions. In the short term, this has naturally increased the divi-

sion’s costs, but in the same way as VBG Truck Equipment,

Mobile Climate Control is utilising the favourable market

conditions for investments in the future, which is entirely in

line with the division’s growth ambitions. When we look at the

development of Mobile Climate Control’s customer segment,

we can see that the segment for off-road vehicles remains

strong in both North America and Europe. Earlier this year, the

school bus segment in North America also made a major con-

tribution to growth. For this segment, Mobile Climate Control

usually notes seasonal fluctuations in the fourth quarter. The

decline that we have already witnessed in the segment, sug-

gests the seasonal fluctuation was manifested slightly earlier

than usual. At the same time, we can see continued growth in

the segment for public transport buses, where the division is

also gaining market shares.

Ringfeder Power Transmission – earnings and sales

continue to grow

I am pleased to observe that both earnings and sales are

continuing to grow for Ringfeder Power Transmission. We also

witnessed this development during the year’s earlier quarters.

Ringfeder Power Transmission’s positive results are largely a

result of the highly favourable development of the two key

markets for the division, Germany and the US, during the

quarter. The healthy earnings performance does not mean

we are slowing down the implementation of the action pro-

gramme that was launched about 12 months ago. Restructuring

work is continuing and despite the positive impact already

seen on profitability for the division from the realised mea-

sures, I expect the greatest effects of the action programme

will be seen next year.

VBG Group — focus on organic growth

We find ourselves in a period of strong economic growth,

which can be clearly seen in three of our divisions. VBG Truck

Equipment and Mobile Climate Control have ambitious plans

for organic growth and they are using the favourable situation

and their strong resources to establish operations in new mar-

kets, and also to gain market shares. This is entirely in line with

the Group’s growth target.


6

GROUP TREND

GROUP

Sales and earnings

Third quarter of 2017

Sales of SEK 719.2 M (335.2) was 114.6 per cent higher com-

pared with the third quarter of 2016. Excluding the acquired

volume of SEK 357.4 M pertaining to Mobile Climate Control,

organic growth was 7.9 per cent. Taking into account the

exchange rate changes between the quarters, the actual

organic growth was 5.6 per cent.

Consolidated operating profit increased to SEK 81.7 M

(51.7), with an operating margin of 11.4 per cent (15.4), of

which SEK 34.6 M, in other words more that the entire SEK

30.0 M increase, pertained to Mobile Climate Control.

Operating profit also included Group-wide overheads in the

Parent Company of SEK 3.0 M (2.1) that were not allocated to

the divisions.

Net financial items for the quarter amounted to an expense

of SEK 6.6 M (expense: 1.3), and, accordingly, profit after

financial items was SEK 75.1 M (50.4).

Profit after tax totalled SEK 53.2 M (40.0) and earnings per

share amounted to SEK 2.13 (3.20).

NET SALES, SEK M PROFIT AFTER FINANCIAL ITEMS*, SEK M

0

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50

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250

300

Quarterly figures Rolling 4 quarters

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100

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120

2014Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q1 Q2 Q3 Q4

2015 2016 2017

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600

1,200

1,800

3,000

2,400

2014Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q2 Q3 Q4 Q1

2015 2016


0

400

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600

800

1,000

2017

* excluding items affecting comparability.

SEK M9 months

2017Q3

2017Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Net sales 2,265.0 719.2 777.2 768.6 1,543.9 464.7 1,079.2 335.2 372.4 371.6 1,315.3 323.0

Operating profit before items affecting comparability 282.9 81.7 98.5 102.7 196.7 45.1 151.5 51.7 48.6 51.1 149.9 24.7

Operating margin, % 12.5 11.4 12.7 13.4 12.7 9.7 14.0 15.4 13.1 13.7 11.4 7.6

Items affecting comparability — — — — –12.72 –12.72 — — — — –15.21 –8.31

Reported operating profit 282.9 81.7 98.5 102.7 184.0 32.4 151.5 51.7 48.6 51.1 134.7 16.4

Reported operating margin, % 12.5 11.4 12.7 13.4 11.9 7.0 14.0 15.4 13.1 13.7 10.2 5.1

Profit after financial items 263.0 75.1 93.6 94.2 168.2 21.7 146.4 50.5 47.1 48.9 134.5 17.8

Profit margin, % 11.6 10.4 12.0 12.3 10.9 4.7 13.6 15.1 12.6 13.2 10.2 5.5

Profit after tax 189.8 53.2 70.1 66.6 120.8 9.5 111.3 40.0 36.3 34.9 95.5 11.3

Cash flow from operating activities 156.2 43.4 38.5 74.3 251.0 106.4 144.6 76.5 13.4 57.4 118.0 21.6

ROCE (cumul.), % 11.0 11.0 11.0 13.7 12.7 12.7 18.0 18.0 18.3 19.0 13.0 13.0

ROE (cumul.), % 14.0 14.0 15.8 17.6 12.7 12.7 15.8 15.8 15.7 15.6 11.3 11.3

Equity/assets ratio, % 53.0 53.0 51.7 51.0 29.13 29.13 71.1 71.1 68.9 68.5 69.2 69.2

Earnings per share, SEK 8.43 2.13 2.80 3.80 9.66 0.76 8.90 3.20 2.91 2.79 7.64 0.90

Equity per share 75.69 75.69 74.75 74.68 82.01 82.01 80.22 80.22 75.29 72.95 69.71 69.71

1 Negative SEK 7.6 M in acquisition-related costs for Henfel Ltda, Brazil, of which negative SEK 6.9 M in the third quarter, negative SEK 0.7 M in the fourth quarter and negative SEK 7.6 M pertaining to an increased provision for inventory obsolescence due to a changed valuation model in the fourth quarter.

2 Negative SEK 7.9 M pertaining to acquisition-related costs attributable to the acquisition of Mobile Climate Control, and negative SEK 4.8 M pertaining to costs for an action programme to increase profitability in Ringfeder Power Transmission.

3 The acquisition balance pertaining to Mobile Climate Control was updated during the first quarter 2017, meaning the consolidated Balance Sheet at 31 December 2016 was also updated.


7

First nine months of 2017

Consolidated sales increased 109.8 per cent to SEK 2,265.0 M

(1,079.2), compared with the year-earlier period. SEK 1,088.1

M of the total increase of SEK 1,185.8 M stemmed from the

acquisition of Mobile Climate Control. Excluding the acquired

volume, organic growth was 9.1 per cent. Actual organic vol-

ume growth was 6.7 per cent after adjustment for exchange

rate changes between the periods.

Operating profit increased to SEK 282.9 M (151.5), with an

operating margin of 12.5 per cent (14.0), where SEK 107.6 M

of the total increase of SEK 131.3 M, pertained to Mobile Cli-

mate Control. The operating profit included Group-wide over-

heads in the Parent Company of SEK 13.3 M (7.9) that were

not allocated to the divisions.

Net financial items for the first nine months of the year

amounted to an expense of SEK 19.9 M (expense: 5.1), and,

accordingly, profit after financial items was SEK 263.0 M (146.4).

Profit after tax totalled SEK 189.8 M (111.3) and earnings

per share amounted to SEK 8.43 (8.90).

Return on capital employed was 11.0 per cent (18.0) and

return on equity was 14.0 per cent (15.8). The Group’s equity/

assets ratio increased from the end of last year to 53.0 per

cent (29.6).

Capital expenditures

The Group’s new capital expenditures during the third quarter

amounted to SEK 10.5 M (6.6), while total new capital expen-

ditures for the first nine months of the year amounted to SEK

37.1 M (26.8).

Financial position

Profit after tax for the nine-month period amounted to SEK

189.8 M (111.3). Other comprehensive income during the

period was a negative amount of SEK 57.3 M (pos: 60.5), cor-

responding to a total operating profit of SEK 132.5 M (171.8).

The fully-subscribed new share issue, which was completed at

the end of February, generated SEK 778.6 M net in new equity

for the company. After the payment of dividends totalling SEK

43.8 M (40.6) to the shareholders, equity amounted to SEK

1,892.7 M at 30 September (1,025.3 at year-end).

The equity/assets ratio increased during the nine-month

period and was 53.0 per cent (29.6 at year-end).

Cash and cash equivalents at the end of September

amounted to SEK 286.1 M (276.4 at year-end), and there was

an unutilised credit facility of SEK 100.0 M (0.0 at year-end),

resulting in an available liquidity of SEK 386.1 M (276.4 at

year-end). The financing agreement with the Group’s creditors

also includes credit facilities in the form of a revolving facility

for an additional SEK 300 M.

The Group’s interest-bearing net debt (including pension

liability) declined by SEK 76.0 M during the third quarter and

amounted at the end of September to SEK 798.0 M (1,692 at

year-end, which then included SEK 800.0 M in short-term

bridge financing for the acquisition of Mobile Climate Control,

which was repaid after the new share issue in February 2017).

The ratio of interest-bearing net debt to equity was 0.42 at 30

September (1.65 at 31 December 2016) and the ratio of net

debt to consolidated operating profit before depreciation/

amortisation and impairment (EBITDA) on a rolling four-quarter

basis was 2.05 (7.31 at year-end).

The Group’s aggregate goodwill was reduced due to

exchange rate changes and amounted at the end of Septem-

ber to SEK 1,520.2 M (1,570.1 at year-end), which in relation

to equity amounted to a ratio of 0.80 (1.53 at year-end).

Cash flow

Cash flow from operating activities during the first nine

months of the year amounted to SEK 156.2 M (144.6 for the

corresponding period in 2016). Paid new capital expenditures

during the period amounted to SEK 37.1 M (45.4). Dividends

totalling SEK 43.8 M (40.6) were paid to the shareholders.

During the first nine months of the year, the Group’s total

non-current and current financial liabilities declined SEK 844.1

M (decline: 6.7 for the corresponding period in 2016), and the

new share issue completed during the first quarter generated

SEK 778.6 M net, which resulted in a negative cash flow from

financing activities of SEK 109.3 M. Consequently, net cash

flow for the period was SEK 9.8 M (51.9).

Personnel

At 30 September 2017, there were 1,465 employees in the VBG

Group (1,401 at year-end), of which 209 (180) in Sweden.

During the first nine months of the year, the Group

employed an average of 1,425 persons (698 during the

year-earlier period). Of these, 209 (180) were active in Swe-

den. The cost of salaries and social security contributions was

SEK 527.4 M (274.7).

Per share data

Earnings per share for the first nine months of the year

amounted to SEK 8.43 (8.90). Equity per share was SEK 75.69

at 30 September 2017, compared with SEK 80.22 at the same

date last year and SEK 82.01 at year-end.

The number of shareholders declined by 216 during the

third quarter and amounted to 4,780 at 30 September (4,595

at year-end).


8

VBG TRUCK EQUIPMENT


VBG Truck Equipment increased sales 7.7 per cent to SEK

185.5 M (172.3). The translation of the sales of foreign

subsidiaries to SEK had a positive impact, resulting in an actual

volume increase that was slightly lower at 6.0 per cent. The

division reduced operating profit slightly to SEK 33.9 M (35.8)

with an operating margin of 18.3 per cent (20.8).


Sales increased 9.6 per cent to SEK 613.6 M (559.9). Taking

into account the translation of the sales of foreign subsidiaries

to SEK, the actual volume increase was slightly lower at 8.2

per cent. Operating profit increased to SEK 123.3 M (107.9)

with an operating margin of 20.1 per cent (19.3).

0

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NET SALES, SEK M OPERATING PROFIT*, SEK M


SALES/EARNINGS

SEK M9 months

2017Q3

2017 Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Net sales 613.6 185.5 202.3 225.8 757.3 197.5 559.9 172.3 194.1 193.4 697.7 177.6



Items affecting comparability — — — — — — — — — — –1.71 –1.71



1 Negative SEK 1.7 M pertaining to an increased provision for inventory obsolescence due to changed valuation model in the fourth quarter of 2016.

SALES BY MARKET

SEK M9 months

2017Q3

2017 Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Sweden 150.3 44.0 50.3 56.0 204.4 55.7 148.9 45.4 51.8 51.5 188.8 45.4

Other Nordic countries 103.3 28.0 34.3 41.0 125.1 31.7 93.4 27.4 34.1 31.9 115.4 28.3

Germany 89.0 28.6 27.2 33.2 106.4 24.8 81.6 23.8 30.4 27.4 101.1 24.6

Other European countries 149.5 44.7 50.3 54.5 178.0 41.8 136.2 40.4 50.0 45.8 159.4 38.4

North America 63.4 20.5 18.8 24.1 85.6 29.2 56.4 18.7 14.9 22.8 80.6 27.4

Australia/New Zealand 44.9 16.3 15.1 13.4 44.7 10.7 33.9 12.2 10.7 11.1 39.0 11.0

Rest of world 13.2 3.4 6.2 3.6 13.1 3.6 9.5 4.4 2.2 2.9 13.4 2.5

VBG Truck Equipment 613.6 185.5 202.3 225.8 757.3 197.5 559.9 172.3 194.1 193.4 697.7 177.6

Third quarter of 2017• Sales rose 7.7 per cent to SEK 185.5 M (172.3).• Operating profit was SEK 33.9 M (35.8), with a

margin of 18.3 per cent (20.8)

First nine months of 2017• Sales rose 9.6 per cent to SEK 613.6 M (559.9).• Operating profit was SEK 123.3 M (107.9), with

a margin of 20.1 per cent (19.3)


9


0

60

120

180

300

240

2014Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q2 Q3 Q4 Q1

2015 2016


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20

40

60

100

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0

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18

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36

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0

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Q3 Q4

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SALES/EARNINGS

SEK M9 months

2017Q3

2017 Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Net sales 196.3 57.5 69.3 69.5 270.5 66.0 204.5 61.2 74.8 68.5 221.7 56.5



Items affecting comparability — — — — — — — — — — 0.91 0.91



1 Negative SEK 0.9 M pertaining to an increased provision for inventory obsolescence due to changed valuation model in the fourth quarter of 2016.

SALES BY MARKET

SEK M9 months

2017Q3

2017 Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Sweden 0.2 0.1 0.0 0.1 0.3 0.1 0.2 0.0 0.1 0.1 0.3 0.1


Germany 110.3 31.9 37.1 41.4 159.8 28.2 131.6 40.8 47.4 43.4 133.8 37.6


Rest of world 0.9 0.1 0.6 0.2 1.1 0.1 1.0 0.1 0.5 0.4 0.9 0.0

Edscha Trailer Systems 196.3 57.5 69.3 69.5 270.5 66.0 204.5 61.2 74.8 68.5 221.7 56.5

Third quarter of 2017• Sales decreased by 6.0 per cent to

SEK 57.5 M (61.2).• Operating profit was SEK 0.7 M (6.1),

with a margin of 1.2 per cent (10.0)

First nine months of 2017• Sales decreased by 4.0 per cent to

SEK 196.3 M (204.5).• Operating profit was SEK 16.5 M (24.1),

with a margin of 8.4 per cent (11.8)


Edscha Trailer Systems’ sales decreased by 6.0 per cent compared

with the year-earlier period to SEK 57.5 M (61.2). The translation

of the sales of foreign subsidiaries to SEK had a positive impact,

resulting in an actual volume decrease of 8.5 per cent. The divi-

sion reported a weak third quarter where low sales in combination

with additional costs in production resulted in operating profit of

SEK 0.7 M (6.1), with an operating margin of 1.2 per cent (10.0).


Sales decreased year-on-year for Edscha Trailer Systems during

the second and third quarters, which means sales for the first

nine months of the year declined by 4.0 per cent to SEK 196.3

M (204.5). Taking changes in exchange rates into account,

the actual volume decrease was 8.2 per cent. Partly as a

consequence of the lower sales, operating profit for the January–

September period was SEK 16.5 M (24.1) with an operating

margin of 8.4 per cent (11.8).


10



In the third quarter, sales were slightly lower than expected

and amounted to SEK 357.4 M. Operating profit was SEK 34.6

M, with an operating margin of 9.7 per cent.


Sales amounted to SEK 1,088.1 M for the first nine months of

the year. Operating profit was SEK 107.6 M, with an operating

margin of 9.9 per cent.

SALES/EARNINGS

SEK M9 months

2017 Q3 2017 Q2 2017 Q1 2017Full-year

2016 Q4 20169 months

2016 Q3 2016 Q2 2016 Q1 2016Full-year

2015 Q4 2015

Net sales 1,088.1 357.4 383.2 347.5 101.4 101.4

Operating profit before items affecting comparability 107.6 34.6 44.2 28.8 5.0 5.0

Operating margin, % 9.9 9.7 11.5 8.3 4.9 4.9

Items affecting comparability — — — — — —

Reported operating profit 107.6 34.6 44.2 28.8 5.0 5.0

Reported operating margin, % 9.9 9.7 11.5 8.3 4.9 4.9

SALES BY MARKET

SEK M9 months

2017 Q3 2017 Q2 2017 Q1 2017Full-year

2016 Q4 20169 months

2016 Q3 2016 Q2 2016 Q1 2016Full-year

2015 Q4 2015

Sweden 29.3 8.2 9.1 11.9 2.9 2.9

Other Nordic countries 20.7 8.3 6.8 5.6 1.7 1.7

Germany 17.9 7.0 5.7 5.2 3.5 3.5

Other European countries 115.6 38.2 39.0 38.4 10.9 10.9

North America 882.1 288.2 316.6 279.5 78.5 78.5

Rest of world 22.5 7.4 6.0 7.0 4.0 4.0

Mobile Climate Control 1,088.1 357.4 383.2 347.5 101.4 101.4

Third quarter of 2017• Sales amounted to SEK 357.4 M. • Operating profit amounted to SEK 34.6 M,

with a margin of 9.7 per cent.

First nine months of 2017• Sales amounted to SEK 1,088.1 M.• Operating profit amounted to SEK 107.6 M,

with a margin of 9.9 per cent.


11



In the third quarter, sales increased 16.8 per cent to SEK 118.8

M (101.7). Taking into account the movements in exchange

rates between the quarters, the actual organic volume increase

was 13.4 per cent. Operating profit increased to SEK 15.5 M

(11.9) with an operating margin of 13.0 per cent (11.7).


Sales increased by 16.6 per cent to SEK 367.0 M (314.8). After

adjustment for exchange rate changes, the actual organic

volume increase was 12.3 per cent. Operating profit for the

first nine months of the year increased sharply to SEK 48.8 M

(27.3) with an operating margin of 13.3 per cent (8.7).

0

100

200

300

500

400


0

30

60

90

150

120

2014Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q1 Q2 Q3 Q4

2015 2016 2017

0

15

30

45

60

Q4


0

5

15

10

20

2014Q3 Q4 Q1 Q2 Q3

Q4Q1 Q2 Q3Q1 Q2 Q3

2015 2016 2017


* Before items affecting comparability.

SALES/EARNINGS

SEK M9 months

2017Q3

2017 Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Net sales 367.0 118.8 122.4 125.8 414.7 99.9 314.8 101.7 103.5 109.6 395.9 88.9

Operating profit before items affecting comparability 48.8 15.5 16.6 16.7 29.0 1.7 27.3 11.9 7.2 8.2 34.3 –1.9

Operating margin, % 13.3 13.0 13.5 13.3 5.8 1.7 8.7 11.7 7.0 7.5 8.7 –2.1

Items affecting comparability — — — — –4.81 –4.81 — — — — –12.6 –5.7

Reported operating profit 48.8 15.5 16.6 16.7 24.2 –3.1 27.3 11.9 7.2 8.2 21.7 –7.62

Reported operating margin, % 13.3 13.0 13.5 13.3 5.8 –3.1 8.7 11.7 7.0 7.5 5.5 –8.6

1 A negative SEK 4.8 M pertaining to an action programme to increase profitability. 2 Negative SEK 7.6 M in acquisition-related costs for Henfel Ltda, of which negative SEK 0.7 M in the fourth quarter, negative SEK 6.9 M in the third quarter and negative

SEK 5.0 M pertaining to an increased provision for inventory obsolescence due to a changed valuation model in the fourth quarter of 2016.

SALES BY MARKET

SEK M9 months

2017Q3

2017 Q2

2017Q1

2017Full-year

2016Q4

20169 months

2016Q3

2016Q2

2016Q1

2016Full-year

2015Q4

2015

Sweden 3.3 1.1 0.7 1.5 4.2 0.9 3.3 1.3 0.8 1.2 4.4 0.7


Germany 132.7 43.1 43.5 46.0 153.8 36.7 117.1 38.9 37.3 40.9 164.5 39.8


North America 76.8 24.2 26.0 26.6 87.1 22.8 64.3 19.7 22.2 22.4 104.2 21.1

Brazil 50.6 16.2 18.9 15.6 56.7 14.5 42.2 12.7 18.9 10.6 4.8 0.7

Australia/New Zealand 9.6 2.5 2.5 4.6 8.8 1.2 7.6 3.1 2.7 1.8 7.2 1.8

Rest of world 43.4 15.3 14.2 13.9 46.9 9.3 37.6 12.7 5.3 19.6 48.9 11.0

Ringfeder Power Transmission 367.0 118.8 122.4 125.8 414.7 99.9 314.8 101.7 103.5 109.6 395.9 88.9

Third quarter of 2017• Sales rose 16.8 per cent to SEK 118.8 M (101.7).• Operating profit was SEK 15.5 M (11.9), with a


First nine months of 2017• Sales rose 16.6 per cent to SEK 367.0 M (314.8).• Operating profit was SEK 48.8 M (27.3), with a



12

Parent Company

VBG Group AB’s operations are focused on managing, devel-

oping and coordinating the Group. The assets in the Parent

Company consist primarily of shares in subsidiaries and trade-

marks. The company also owns the industrial property in

Vänersborg that is rented by the subsidiary VBG Group Truck

Equipment AB.

The objective is that the Group’s intellectual property in the

form of trademarks and other rights should be gathered in the

Parent Company. VBG Group AB focuses on maintaining and

developing all the Group’s trademarks and rights.

The Parent Company’s net sales pertain primarily to intra-

Group services, licence revenues and rentals and amounted to

SEK 16.7 M (16.9) during the first nine months of the year.

The operating loss for the first nine months of the year was

SEK 15.5 M (loss: 11.0). Profit after dividends from Group com-

panies and net financial items totalled SEK 23.6 M (40.2).

Updated acquisition balance of Mobile Climate Control

Group Holding AB

In the fourth quarter of 2016, the Group’s Parent Company

completed the acquisition of the Swedish Group Mobile

Climate Control. The acquired Group formed a new division

from 23 November 2016. The purchase consideration for all

shares in the company amounted to SEK 1,372 M for a debt-

free company and normalised working capital. In conjunction

with the takeover, a fully-subscribed new share issue was

completed and generated SEK 800 M in new capital to part-

finance the acquisition. An estimated balance sheet on 22

November formed the basis for the preliminary acquisition

plan presented in the annual closing.

During the first quarter, the preliminary acquisition balance

was updated as follows:

Preliminary 2016

Updated Q1 2017

Purchase consideration 1,372.8 1,372.8

Acquired net assets:

Cash and cash equivalents 108.9 108.9

Property, plant and equipment 104.9 104.9

Trademarks — 300.0

Other intangible assets 5.0 5.0

Long-term investments 16.3 16.3

Inventories 208.5 208.5

Receivables 251.7 251.7

Deferred tax liability, trademarks — –66.0

Other liabilities –769.2 –769.2

Goodwill 1,446.7 1,212.7

The acquisition plan continues to be preliminary pending the

completion of the process to identify and calculate the value

of intangible assets, which is scheduled for the fourth quarter.

Accounting policies

The VBG Group applies the EU-endorsed IFRS standards and

interpretations thereof. This interim report for the Group has

been prepared in accordance with the Annual Accounts Act

and IAS 34 Interim Financial Reporting. The Parent Company’s

financial statements have been prepared in accordance with

the Swedish Annual Accounts Act and RFR 2. The same

accounting policies and calculation methods were applied as in

the most recent annual report.

Risks and uncertainty factors

The Group’s and the Parent Company’s significant risks and

uncertainty factors include business-related operational risks

in the form of commodity risks, product risks, development

risks, intellectual property risks, environmental risks, political

risks, business interruption and property risks, cyclical risks, IT

security risks and legal risks. To these can be added financial

risks such as financing risks, liquidity risks, interest rate risks,

currency risks and credit and counterparty risks.

For a more detailed description of the Group’s risks and risk

management, see VBG Group AB’s annual report for 2016,

Note 2.

Outlook for 2017

The company makes no forecast.

Financial information 2017/2018

Year-end report 2017 20 February 2018

Interim report, three months 2018 25 April 2018

Annual General Meeting 2018 25 April 2018

Interim report, six months 2018 21 August 2018

Interim report, nine months 2018 22 October 2018

Related party transactions

There have been no related party transactions in 2017 that

have significantly affected the company’s financial position

and results. Related party transactions during 2016 are dis-

closed in Note 6 in the annual report for 2016.

OTHER INFORMATION


13

Note

This information is of the type that VBG Group AB is obligated

to disclose in accordance with the Swedish Securities Exchange

and Clearing Operations Act and/or the Financial Instruments

Trading Act. The information was submitted for publication on

26 October 2017 at 2:00 p.m.

Press releases since the previous report

Interim report Jan–Jun 2017 22 August 2017

Mobile Climate Control secures

strategically important order 14 September 2017

New Division Manager of Edscha

Trailer Systems 16 October 2017

For further information, please contact:

Anders Birgersson, Managing Director and CEO

Telephone: +46 521-27 77 67, +46 702-27 77 78

E-mail: [email protected]

Vänersborg, 26 October 2017

VBG Group AB (publ)

Anders Birgersson

Managing Director and CEO

No significant events occurred after the close of the period.

Introduction

We have reviewed the interim report for VBG Group AB (publ),

Corp. ID no. 556069-0751, for the period 1 January–30 Sep-

tember 2017. The Board of Directors and the Managing Direc-

tor are responsible for the preparation and presentation of this

interim financial information in accordance with IAS 34 and

the Annual Accounts Act. Our responsibility is to express a

conclusion regarding this interim financial information based

on our review.

Aim and 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 consists of making inquiries,

primarily of persons responsible for financial and accounting

matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted

in accordance with International Standards on Auditing (ISA)

and other generally accepted auditing standards in Sweden.

The procedures performed in a review do not enable us to

obtain a level of assurance that would make us aware of all

significant matters that might be identified in an audit. There-

fore, the conclusion expressed based on a review does not

give the same level of assurance as a conclusion expressed

based on an audit.

Conclusion

Based on our review, nothing has come to our attention that

causes us to believe that the accompanying interim financial

information has not, in all material respects, been prepared in

accordance with IAS 34 and the Annual Accounts Act as

regards the Group and in accordance with the Annual

Accounts Act as regards the Parent Company.

Gothenburg, 26 October 2017

Öhrlings PricewaterhouseCoopers AB

Fredrik Göransson

Authorised Public Accountant

Review report


14

Consolidated Income Statement and Statement of other comprehensive income – Highlights

SEK MQ3

Jul–Sep 2017Q3

Jul–Sep 20169 months

Jan–Sep 20179 months

Jan–Sep 2016Full-year

2016

Net sales 719.2 335.2 2,265.0 1,079.2 1,543.9

Cost of goods sold –470.7 –192.5 –1,452.9 –623.8 –918.0

Gross profit 248.5 142.7 812.1 455.4 625.9

Selling expenses –78.5 –53.5 –244.2 –169.1 –233.8

Administrative expenses –53.7 –32.0 –182.4 –106.7 –164.1

Research and development costs –24.2 –8.9 –78.5 –28.9 –46.8

Other operating income and expenses –10.4 3.4 –24.0 0.8 2.7

Operating profit 81.7 51.7 282.9 151.5 184.0

Net financial items –6.6 –1.3 –19.9 –5.1 –15.8


Tax –21.9 –10.4 –73.2 –35.1 –47.4

Profit for the period 53.2 40.0 189.8 111.3 120.8

Profit for the period attributable to Parent Company shareholders 53.2 40.0 189.8 111.3 120.8

Depreciation and amortisation charged to profit –18.9 –10.3 –57.2 –31.0 –49.3

Other comprehensive income

Profit for the period 53.2 40.0 189.8 111.3 120.8

Items that will not be reversed in the Income Statement

Effect of translation of defined-benefit pension plans, net after tax –2.1

Other items –1.3

Items that may later be reversed in the Income Statement

Translation differences pertaining to foreign operations –29.3 19.9 –57.3 60.0 72.0

Translation differences pertaining to hedge accounting for net investments in foreign operations 0.0 1.3 0.0 0.4 5.1

Other comprehensive income/loss, net after tax –29.3 21.3 –57.3 60.5 73.7

Comprehensive income for the period 23.9 61.3 132.5 171.8 194.5

Comprehensive income for the period attributable to Parent Company shareholders 23.9 61.3 132.5 171.8 194.5

Earnings per share, basic and diluted, SEK 2.13 3.20 8.43 8.90 9.66

Number of outstanding shares at end of period (‘000) 25,004 12,502 25,004 12,502 12,502

Average number of shares during the period 25,004 12,502 22,504 12,502 12,502

Number of own shares at end of period 1,192 1,192 1,192 1,192 1,192


15

Sales and earnings by segment

SEK M

VBG Truck

Equipment

Edscha Trailer

Systems

Mobile Climate Control

Ringfeder Power

Transmission Group-wide Group

2017

Q3 Jul–Sep Net sales 185.5 57.5 357.4 118.8 719.2

Operating profit/loss before items affecting comparability 33.9 0.7 34.6 15.5 –3.0 81.7


Items affecting comparability — — — — —

Reported operating profit/loss 33.9 0.7 34.6 15.5 –3.0 81.7


Net financial items –6.6 –6.6

Profit after financial items 75.1

9 months Jan–Sep Net sales 613.6 196.3 1,088.1 367.0 2,265.0

Operating profit/loss before items affecting comparability 123.3 16.5 107.6 48.8 –13.3 282.9



Reported operating profit/loss 123.3 16.5 107.6 48.8 –13.3 282.9




2016

Q3 Jul–Sep Net sales 172.3 61.2 — 101.7 335.2

Operating profit/loss before items affecting comparability 35.8 6.1 — 11.9 –2.1 51.7

Operating margin, % 20.8 10.0 — 11.7 15.4


Reported operating profit/loss 35.8 6.1 — 11.9 –2.1 51.7

Reported operating margin, % 20.8 10.0 — 11.7 15.4



9 months Jan–Sep Net sales 559.9 204.5 — 314.8 1,079.2

Operating profit/loss before items affecting comparability 107.9 24.1 — 27.3 –7.9 151.4

Operating margin, % 19.3 11.8 — 8.7 14.0


Reported operating profit/loss 107.9 24.1 — 27.3 –7.9 151.5

Reported operating margin, % 19.3 11.8 — 8.7 14.0




16

Changes in consolidated equity SEK M 9 months 2017 9 months 2016 Full-year 2016

Opening equity according to balance sheet at 31 December 1,025.3 871.5 871.5

Total comprehensive income for the period 132.5 171.8 190.1

Contributed capital, new share issue, net 778.6 — —

Dividend -43.8 -40.6 -40.6

Equity at end of period 1,892.7 1,002.7 1,025.3

Cash Flow Statement – HighlightsSEK M 9 months 2017 9 months 2016 Full-year 2016

Cash flow from operating activities before changes in working capital 233.5 209.2 221.0

Change in working capital -77.3 -64.6 30.0

Cash flow from operating activities 156.2 144.6 251.0

Cash flow from investing activities -37.1 -45.4 -1,295.2

Cash flow from financing activities -109.3 -47.3 1,162.6

Cash flow for the period 9.8 51.9 118.4

Cash and cash equivalents at start of year 276.4 143.9 143.9

Translation difference, cash and cash equivalents -0.1 -0.3 14.0

Cash and cash equivalents at end of period 286.1 195.5 276.4

Unutilised overdraft facilities 100.0 196.5 —

Available cash and cash equivalents 386.1 392.0 276.4

Key figures for Group SEK M 9 months 2017 9 months 2016 Full-year 2016

Profit margin (ROS), % 11.6 13.6 11.9

Return on equity (ROE), % 14.0 15.8 12.7

Return on capital employed (ROCE), % 11.0 18.0 12.7

Equity/assets ratio, % 53.0 71.1 29.1

Equity per outstanding share at end of period, SEK 75.69 80.22 82.01

Cash flow from operating activities, per average outstanding share, SEK 6.94 11.57 20.08

Profit per average outstanding share during the period, SEK 8.43 8.90 9.66

Share price at end of period, SEK 145.00 137.75 160.50

Number of employees, average 1,425 698 636

Number of outstanding shares at end of period (‘000) 25,004 12,502 12,502

Number of own shares at end of period (‘000) 1,192 1,192 1,192

Average number of outstanding shares during the period (‘000) 22,504 12,502 12,502

Consolidated Balance Sheet – HighlightsSEK M 9 months 2017 9 months 2016 Full-year 2016

Goodwill 1,520.2 350.3 1,570.11

Other intangible assets 336.8 60.3 361.2

Property, plant and equipment 323.1 223.0 326.2

Long-term investments 56.4 18.7 67.9

Total non-current assets 2,236.6 652.3 2,325.4

Inventories 493.6 288.1 481.2

Receivables 552.8 274.6 446.2

Cash on hand, demand deposits and short-term investments 286.1 195.5 276.3

Total current assets 1,332.5 758.2 1,203.9

TOTAL ASSETS 3,569.1 1,410.5 3,529.3

Equity 1,892.7 1,002.7 1,025.3

Non-current liabilities 841.5 232.5 1,299.4

Current liabilities 834.9 175.3 1,204.6

TOTAL EQUITY AND LIABILITIES 3,569.1 1,410.5 3,529.3

1 Balance sheet from 31 December 2016 is adjusted with an updated acquisition balance in the first quarter of 2017. The changes have not influenced the Group’s equity. Refer to page 12 for more information about the reclassifications that followed the updated acquisition plan.


17

Parent Company Balance Sheet

SEK M 9 months 2017 9 months 2016 Full-year 2016

Other intangible assets 3.2 5.5 5.0

Property, plant and equipment 7.8 6.3 5.8

Long-term investments 2,042.6 661.8 2,042.6

Total non-current assets 2,053.6 673.6 2,053.4

Receivables 449.4 58.0 559.2

Cash on hand, demand deposits and short-term investments 136.8 138.2 91.6

Total current assets 586.2 196.2 650.8

TOTAL ASSETS 2,639.8 869.8 2,704.2

Equity 1,291.2 512.6 532.8

Untaxed reserves 7.8 13.1 7.8

Provisions 12.8 12.7 12.8

Non-current liabilities 828.9 2.1 904.0

Current liabilities 499.1 329.3 1,246.8

TOTAL EQUITY AND LIABILITIES 2,639.8 869.8 2,704.2

Parent Company Income Statement

SEK M 9 months 2017 9 months 2016 Full-year 2016

Net sales 16.7 16.9 26.9

Operating expenses –32.2 –27.9 –39.9

Operating profit –15.5 –11.0 –13.0

Net financial items 39.0 51.2 49.3

Profit after financial items 23.6 40.2 36.3

Appropriations — — 30.3

Tax — — –3.5

Profit for the period 23.6 40.2 63.1


18

Alternative performance measures

Reconciliation between IFRS and performance measures used

Certain information in this report that is used by company management and analysts to assess the Group’s performance has not

been prepared in accordance with IFRS. Company management believes that this information makes it easier for investors to

analyse the Group’s earnings performance and financial structure. Investors should view this information as a supplement rather

than a replacement of financial reporting in accordance with IFRS.

OPERATING PROFIT AND OPERATING MARGIN BEFORE ITEMS AFFECTING COMPARABILITY

Items affecting comparability refer to material income or expense items that are recognised separately due to the significance of

their character or amount.

SEK M 9 months 2017 Q3 2017 9 months 2016 Q3 2016 Full-year 2016

Group

Net sales 2,265.0 719.2 1,079.2 335.2 1,543.9





Operating margin before items affecting comparability 12.5% 11.4% 14.0% 15.4% 12.7%

VBG Truck Equipment

Net sales 613.6 185.5 559.9 172.3 757.2






Edscha Trailer Systems

Net sales 196.3 57.5 204.5 61.2 270.5







Net sales 1,088.1 357.4 — — 101.4

Reported operating profit 107.6 34.6 — — 5.0

Reported operating margin, % 9.9 9.7 — — 4.9


Operating profit before items affecting comparability 107.6 34.6 — — 5.0

Operating margin before items affecting comparability 9.9% 9.7% — — 5.0%

Ringfeder Power Transmission

Net sales 367.0 118.8 314.8 101.7 414.7







19

ACTUAL ORGANIC GROWTH

Growth in net sales excluding effects of structural changes, meaning acquired or divested operations, and excluding

currency effects.

SEK M 9 months 2017 Q3 2017 9 months 2016 Q3 2016 Full-year 2016

Group

Net sales 2,265.0 719.2 1,079.2 335.2 1,543.9

Acquired volume (incl. full-year effect from preceding year) –1,088.1 –357.4 –42.3 –12.7 –150.2

Currency effect –25.4 –7.9 1.1 2.8 –6.9

Net sales excluding acquisitions and currencies 1,151.5 353.9 1,038.0 325.3 1,386.8

Actual organic growth 72.3 18.7 45.7 19.6 71.5

6.7% 5.6% 4.6% 6.4% 5.4%

VBG Truck Equipment

Net sales 613.6 185.5 559.9 172.3 757.3

Acquired volume (incl. full-year effect from preceding year) — — — — —

Currency effect –7.5 –2.9 0.6 2.1 0.7

Net sales excluding acquisitions and currencies 606.1 182.6 560.5 174.4 758.0

Actual organic growth 46.2 10.3 40.4 15.5 60.3

8.2% 6.0% 7.8% 9.8% 8.6%

Edscha Trailer Systems

Net sales 196.3 57.5 204.5 61.2 270.5


Currency effect –4.4 –1.5 0.2 0.2 –3.3


Actual organic growth –12.6 –5.2 39.5 13.0 45.5

–6.2% –8.5% 23.9% 26.9% 20.5%


Net sales 1,088.1 357.4 — — 101.4


Currency effect — — — — —

Net sales excluding acquisitions and currencies 1,088.1 357.4 — — 101.4

Actual organic growth n/a n/a — — n/a

n/a n/a — — n/a

Ringfeder Power Transmission

Net sales 367.0 118.8 314.8 101.7 414.7

Acquired volume (incl. full-year effect from preceding year) — — –42.3 –12.7 –48.8

Currency effect –13.4 –3.5 0.3 0.6 –4.8


Actual organic growth 38.8 13.6 –34.2 –8.8 –34.8

12.3% 13.4% –11.1% –8.9% –8.8%

INTEREST-BEARING NET DEBT

Interest-bearing provisions and loan liabilities less cash and cash equivalents.

Group, SEK M 9 months 2017 Q3 2017 9 months 2016 Q3 2016 Full-year 2016

Provisions for pensions 177.3 173.9 175.7

Overdraft facilities

Loans 906.8 16.5 1,793.1

Bank balances –286.1 –195.6 –276.4

Interest-bearing net debt 798.0 n/a –5.2 n/a 1,692.4


20

EBITDA

Operating profit before depreciation/amortisation and impairment.


Operating profit 282.9 81.7 151.5 51.7 184.0

+ Depreciation/amortisation 57.2 18.9 31.0 10.3 47.5

EBITDA 340.1 100.6 182.5 62.0 231.5

INTEREST-BEARING NET DEBT/EBITDA

Interest-bearing net debt in proportion to operating profit before depreciation/amortisation and impairment.


Interest-bearing net debt 798.0 –5.2 1,692.4

EBITDA rolling 4 quarter 389.1 210.9 231.5

INTEREST-BEARING NET DEBT / EBITDA 2.05 n/a neg n/a 7.31

PROFIT MARGIN

Profit after financial items as a percentage of net sales.


Net sales 2,265.0 719.2 1,079.2 335.2 1,543.9


PROFIT MARGIN 11.6% 10.4% 13.6% 15.1% 10.9%

South AfricaMCC AFRICA PTY (LTD)Unit 7B, Rinaldo Industrial Park50 Moreland Drive, Red Hill4071 DurbanTel +27 31 569 3971


GermanyRINGFEDER POWER TRANSMISSION GMBHWerner-Heisenberg-Straße 18 DE-64823 Groß-UmstadtTel +49 6078-9385-0

RINGFEDER POWER TRANSMISSION TSCHAN GMBHPostfach 2166DE-66521 NeunkirchenTel +49 6821 866 0

Czech RepublicRINGFEDER POWER TRANSMISSION S.R.O. Oty Kovala 1172CZ-33441 DobranyTel +420 377 201 511

USARINGFEDER POWER TRANSMISSION USA CORPORATION165 Carver AvenueWestwood, NJ 07675Tel +1 201 666 3320

IndiaRINGFEDER POWER TRANSMISSION INDIA PRIVATE LTD.Plot No. 4, Door No. 220Mount Poonamallee High RoadKattuppakkamChennai-600056Tel +91 44 2679 1411

ChinaKUNSHAN RINGFEDER POWER TRANSMISSION CO., LTD.No. 10, Dexin RoadZhangpu 215321Kunshan, Jiangsu ProvinceTel +86 512 5745 3960

BrazilHENFEL INDÚSTRIA METALÚRGICA LTDA.Major Hilario Tavares Pinheiro, 3447 Cep 14871 - 300Jaboticabal, SPTel +55 16 3209 3422

VBG TRUCK EQUIPMENT

Sweden VBG GROUP TRUCK EQUIPMENT AB Box 1216SE-462 28 VänersborgTel +46 521 27 77 00

GermanyVBG GROUP TRUCK EQUIPMENT GMBHPostfach 13 06 55DE-47758 KrefeldTel +49 2151 835-0

DenmarkVBG GROUP SALES A/SIndustribuen 20–22DK-5592 EjbyTel +45 64 46 19 19

NorwayVBG GROUP SALES ASPostboks 94 LeirdalNO-1009 OsloTel +47 23 14 16 60

UKVBG GROUP SALES LIMITEDUnit 9, Willow CourtWest Quay Road, Winwick QuayWarrington, Cheshire WA2 8UFTel +44 1925 23 41 11

BelgiumVBG GROUP TRUCK EQUIPMENT NVIndustrie Zuid Zone 2.2Lochtemanweg 50BE-3580 BeringenTel +32 11 458 379

USAONSPOT OF NORTH AMERICA, INC.P.O. Box 1077North Vernon, IN 47265-5077Tel +1 800 224 2467

Branch:555 Lordship BlvdStratford, CT 06615-7124Tel +1 800 766 7768

FranceONSPOT E.U.R.L14 Route de SarrebruckFR-57645 Montoy-FlanvilleTel +33 387 763 080


Germany EUROPEAN TRAILER SYSTEMS GMBHIm Moerser Feld 1fDE-47441 MoersTel +49 2841 6070 700

VBG GROUP

SwedenVBG Group AB (publ) Kungsgatan 57SE–461 34 TrollhättanTel +46 521 27 77 00www.vbggroup.com

Czech RepublicEUROPEAN TRAILER SYSTEMS S.R.O.Ke Gabrielce 786CZ-39470 Kamenice nad LipouTel +420 565 422 402


SwedenMOBILE CLIMATE CONTROL GROUP HOLDING ABKungsgatan 57SE-461 34 TrollhättanTel +46 521–27 77 00

MOBILE CLIMATE CONTROL SVERIGE ABBox 96SE-761 21 NorrtäljeTel +46 8 402 21 40

MOBILE CLIMATE CONTROL SVERIGE ABOdinslundsgatan 15SE-412 66 GothenburgTel +46 8 402 21 40

CanadaMOBILE CLIMATE CONTROL INC.7540 Jane St.Vaughan, OntarioL4K 0A6Tel +1 (905) 482–2750

MOBILE CLIMATE CONTROL INC.6659 Ordan DriveMississauga, OntarioL5T 1K6Tel +1 (905) 482–2750

USAMOBILE CLIMATE CONTROL CORP.P.O. Box 150Goshen, Indiana 46527Tel +1 (574) 534–1516

MOBILE CLIMATE CONTROL CORP.3189 Farmtrail RoadYork, PA 17406Tel +1 (717) 767–6531

MOBILE CLIMATE CONTROL CORP.27 Corporate Circle Suite 1East Syracuse, NY 13057Tel +1 (315) 434–1851

PolandMOBILE CLIMATE CONTROL S.P.Z.OOUl. Szwedzka 155-200 OławaTel +48 71 3013 701

ChinaNINGBO MOBILE CLIMATE CONTROL MANUFACTURING/TRADING CO., LTDNo.7 Jinxi RoadZhenhai, Ningbo, 315221Tel +86 (574)–863 085 77

Documents

VBG GROUP INTERIM REPORT JANUARY–SEPTEMBER 2017 · VBG GROUP INTERIM REPORT JANUARY–SEPTEMBER 2017 1 Third quarter of 2017: • Consolidated sales increased 114.6 per cent, or