Bilia company presentation 2015

Company presentation 2015
Everything related to the car.
And then some.
Contents
Business model
Statement by
the Managing Director
Vision and business concept
Core values
Sustainable development
Service Business
Car Business
Financial overview
Group overview
Sweden
Norway
Germany / Denmark
Share, AGM
and important dates
2
4
6
8
10
12
14
16
17
18
20
22
24
Bilia expands in Europe
>> Bilia is one of Europe’s biggest car dealership chains with operations in Sweden,
Norway, Germany and, from 2016, Luxembourg.
Bilia offers car sales, service and supplementary services
and strives to have the most satisfied customers in the
business. The Service Business includes service and
damage centres, spare parts, car washes, stores, tyre and
glass centres and other accessory services.
The Car Business includes both new and used cars and
transport vehicles. The car brands Bilia offers are Volvo,
BMW, Ford, Renault, Toyota, Lexus, Dacia, Hyundai and
MINI. The Fuel Business comprises the sale of fuels in
Sweden and Norway.
Notable events during the year
• The operation in Denmark was discontinued during the
year.
• Bilia acquired Toyota Hell Bil AS and Toyota HortenTønsberg AS in Norway. Date of possession 1 March.
• The Swedish pension liability for ITP 2 was redeemed as
of 1 May.
• A stock split was carried out on 28 May where each
existing share was split into two new shares.
• Bilia raised its financial goals in wake of the
Number of
stored wheels
192,600
Number of service
subscriptions
59,600
Number of
Number of
delivered new cars delivered used cars
Turnover Car
Business, SEK M
41,102 37,542 15,694
discontinuation of the operation in Denmark.
• Bilia terminated the sales agreements for new Ford cars
in Sweden and Norway in October. Bilia will retain the
workshop agreements for service and repairs.
• Bilia acquired the Lexus dealer Kaiser Bil AB in Sweden.
Date of possession 1 October.
• Bilia acquired Dörr & Hess, a dealer for BMW and MINI in
Germany. Date of possession 1 October.
• Bilia acquired Hedbergs Bilskrot AB and Bastborren
Fastighets AB in Sweden. Date of possession 1 January
2016.
• Bilia signed an agreement to acquire Arnold Kontz’s
BMW and MINI operation in Luxembourg. The estimated
date of possession is 31 March 2016.
Events after the balance sheet date
• Bilia signed agreements to acquire one BMW and
MINI dealer and two Toyota dealers in Sweden. The
estimated date of possession is March 2016, contingent
on the approval of the Swedish Competition Authority.
Number of
employees
Total turnover,
SEK M
Earnings per share,
SEK
12.85
3,613
Number of facilities
Turnover Service
Business, SEK M
Turnover
Fuels, SEK M
20,443
106
4,491
1,021
1
Bilia – a full-service supplier
>> Bilia is a full-service supplier, a One Stop Shop, with a complete range of
products and services in both the Car and Service Businesses. Our business model
is based on putting the customer in focus and creating an offer around everything
to do with the car as long as the customer owns it.
Based a strong customer focus, Bilia is constantly
developing the company’s offering to meet the needs
of the customer and the car. Bilia has several of the
strongest and most popular car brands on the market,
which strengthens the Car Business and stimulates new
business to foster a long-term customer relationship.
When, for example, customers choose financing
solutions via Bilia, they enter into a long-term
relationship. When an insurance policy is sold together
with the car, this ensures that Bilia will handle any
necessary future damage repairs. This makes life simpler
for the customers, who can manage their entire car
ownership via a single supplier.
Service subscriptions offer a number of advantages for
customers in the form of convenience and competitive
prices. The advantages for Bilia are a steady work flow
and the ability to schedule service in good time. This
strengthens the customer relationship and gives us an
opportunity to present our entire offering.
In addition to service and damage centres, Bilia also
has other products and services such as auto glass and
tyre centres, paint and glass treatment, dent removal,
accessories, reconditioning, car washes, rental cars and
fuels. For the car owner, it is an advantage to be able to
get all car-related needs dealt with in a single visit.
2
Business model
Bilia’s close cooperation with leading car and tyre
manufacturers and other business partners gives the
employees special expertise in such areas as automotive
electronics, tyres and auto glass, which creates added
value for the customer. Bilia’s tyre hotels make life
easier for the customer and enable Bilia to keep track
of the customer’s different tyre needs. Independent car
inspection companies are situated adjacent to some of
Bilia’s facilities.
The Bilia card (available in Sweden) is of central
importance for Bilia’s services and products and enables
the customer to gather all car costs on a single invoice.
Bilia’s size offers economies of scale, leading
to competitive prices for products and services.
Accessibility is high; it is always possible to get in
touch with well-trained personnel who work to give the
customer the best possible service.
The customer can get all
car-related needs dealt
with in a single visit.
Financing
Insurance
Bilia card
Accessories
Spare parts
AC cleaning
Dent removal
Reconditioning
Roadside assistance
Damage centre
Repairs
Trade-in
Tyre hotel
Fuels
Car wash
Store
Service subscription
Paint treatment
Glass treatment
Tyre sales
Glass repair
Rental car
Service centres & PST
Wheel change
3
A year with strong profitability
>> 2015 was a year with good demand for cars, high capacity utilization at our
workshops and strong earnings. It was also the year when we wound up our
business affairs in Denmark after many years of poor profitability and took a new
step out into Europe.
The economic climate in Sweden has been favourable.
We broke new records in terms of profitability and can
look back on a good year. As far as Norway is concerned,
we can observe that plug-in hybrids are advancing their
position on the market and that we managed to do well
despite low oil prices, which affected consumption.
The winding-up of our operation in Denmark has now
been completed. The five facilities have been sold, and
virtually all personnel have found new employment, which is
gratifying.
Our growth strategy continues. In Norway we have acquired
a Toyota and Lexus dealer with eight facilities and an annual
turnover of about SEK 1 billion.
Lexus has been added as a new brand in Sweden as
well with the acquisition of four dealerships in Stockholm
and Malmö which together account for 42 per cent of the
brand’s sales in the country.
The acquisition of a BMW dealer in Germany, with four
facilities north of Frankfurt and an annual turnover of over
SEK 500 M, represents Bilia’s entry into the European
market.
Our tyre and glass services are taking market share.
Bilia’s tyre hotels currently have 192,600 wheels in storage,
and we are expanding our storage capacity. The tyre hotels
are important in promoting stronger customer relationships.
Each meeting with the customer is an opportunity to fulfil
our strategy to be a full-service supplier.
The focus of recent years on attracting customers with
older cars to our aftermarket services is continuing.
Bilia has initiated a discontinuation of the Ford brand,
which has long shown poor profitability. Instead of making
big investments for the brand in both Sweden and Norway,
4
Statement by the Managing Director
we chose to terminate the sales agreements. Ford sales will
cease at the end of 2017, but we will retain our involvement
on the aftermarket.
The Group’s operating profit, excluding items affecting
comparability, amounted to SEK 731 M (553). The
improvement is due to the positive performance of both
the Service and Car Businesses during the year. The
Service Business showed slightly improved demand, which
– together with efforts to promote service subscriptions,
tyre hotels and add-on sales – led to a significant earnings
improvement compared with 2014. Earnings in the Car
Business also improved, mainly due to better profitability in
used car sales.
Customer satisfaction is one of our most important success
factors. Bilia has developed its own methodology, RACE, for
improving the way we deal with customers. We report the
results of the customer surveys continuously on our websites.
The annual employee survey is also important, since satisfied
employees are a prerequisite for satisfied customers.
At the end of December we concluded an agreement
to acquire a profitable BMW dealer in Luxembourg, with
an annual turnover of about SEK 1 billion. The acquisition
also provides a good base for further growth with BMW in
neighbouring markets such as Belgium and Germany.
With several months’ perspective on 2015, I think we can
look back on a successful year with strong acquisitions,
good earnings and new exciting opportunities ahead of us.
Gothenburg, March 2016
Per Avander
Managing Director and CEO
The acquisition of the
BMW dealer in Germany
represents Bilia’s entry
into the European
market.
5
Our vision is to be the best service
­company in the business
>> In order to fulfil Bilia’s customer promise – All the Way – we must be a full-service
supplier that helps customers with everything related to their car. And then some.
Vision
Our vision is to be the best service company in the
business.
Business concept
Bilia’s business concept is to offer car service, car sales
and supplementary services that give the customers
lasting added value.
Strategy
By means of a clearer customer focus with more services
and products, Bilia will create the necessary conditions
for cost-effective and profitable growth.
Success factors
Compared with our competitors, Bilia enjoys a number of
advantages. Based on these advantages we will develop
our business by means of:
• a strong focus on the customer and a constant striving
to offer better service.
• car sales that tie the customer to Bilia on the service
market.
• further development of the concept of Personal Service
Technicians to strengthen customer relationships.
• highly qualified and ambitious employees who strive to
develop so they can give our customers the best
possible service.
• identification and development of leaders within Bilia.
• centralisation of functions to achieve cost, competence
and quality benefits, for example within purchasing,
administration, human resources, marketing, IT and
delivery administration.
• a strong brand. Bilia has a wide range of products and
brands in both the Service and Car Businesses.
• dealerships with high accessibility where the customer
can contact us round the clock and make appointments
via our websites.
Financial goals
The financial goals were raised in 2015.
Operating margin
Rörelsemarginal
Rörelsemarginal
Rörelsemarginal
Rörelsemarginal
4 44
4
3 33
3
2 22
2
1 11
Goal,
Goal,
at
at at
Goal,
atGoal,
least
least least
least
2.5
2.5
2.5
%%%2.5 %
1
0
0 00
2013
2013
2014
20142014
2015
20152015
% 2013
%%% 2013
2014
2015
Excluding items affecting
comparability, the margin was
3.6 per cent (3.0).
6
Vision and business concept
Return
on sysselsatt
capital
employed
Return
on equity
Avkastning
Avkastning
Avkastning
sysselsatt
sysselsatt
sysselsatt
kapital
kapital
kapital Avkastning
Avkastning
Avkastning
Avkastning
eget
eget
eget
kapital
kapital
kapital
Avkastning
kapital
eget
kapital
Growth
Tillväxt
Tillväxt
Tillväxt
Tillväxt
40
40 40
40
15
15 15
15
30
30 30
30
20
20 20
20
40
40 40
40
30
30 30
Goal,
at
Goal,
at at 30
Goal,
atGoal,
least
least least
least
20
20 20
20
17
17
17
%%%17 %
10
10 10
10
0
0 00
2013
2014
2015
2013
20142014
20152015
% 2013
%%% 2013
2014
2015
ROCE was 36.2 per cent in 2015 (19.8).
Goal,
Goal,
at
at at
Goal,
atGoal,
least
least least
least
18
18
18
%%%18 %
10
10 10
10
0
0 00
2013
2013
2014
20142014
2015
20152015
% 2013
%%% 2013
2014
2015
ROE amounted to 33.2 per cent
in 2015 (21.0).
10
10 10
10
5 55
5
Goal,
Goal,Goal,
Goal,
5–10
5–10
%% %
5–10
%5–10
0
0 00
2013
20142014
20152015
% 2013
2013
2014
2015
%%%2013
2014
2015
Growth in the Service Business was 12.8
per cent, in the Car Business 11.0 per cent
and in the Fuel Business –2.8 per cent.
As a Personal Service Technician, I can
offer the customer a higher level of service.
I can go the extra mile, so to speak.
Emil Mellbom,
Personal Service Technician
7
Accessibility, Interest and
­Attractive Car Ownership
>> Happy customers are crucial for Bilia as a service company. This is reflected
in the customer promise and in Bilia’s core values: Interest, Accessibility and
Attractive Car Ownership.
8
To live up to and exceed customer expectations,
dedicated and qualified employees are essential. Bilia
therefore trains its employees continuously as a natural
part of their work. Job satisfaction is measured regularly,
and the surveys reveal very satisfied employees and a
positive trend. All Bilia employees represent the Bilia
brand and vision: to be a full-service supplier that offers
products and services for all aspects of car ownership.
up and responding to viewpoints from our customers.
Bilia recently started a project to further strengthen our
presence on social media.
Telephone accessibility is measured regularly, and the
objective is to answer at least 95 per cent of all phone
calls within 30 seconds. Our joint customer service
Bilia Nu (Bilia Now) is accessible round the clock via
telephone and online chat.
Accessibility
Interest
It should always be possible to get in touch with Bilia.
The company is represented by facilities in several
countries and has a large network of authorised service
workshops. The company’s websites have more than
19,000 visitors per day, and the range of services is
under constant development.
Major improvements were made to bilia.se and bilia.no
in 2015, resulting in easier navigation, new booking flows
and better adaptation to mobile phones and tablets.
The improved websites offer clearer links to booking of
service, wheel changes and test drives. The customers
can also chat with us online and visit Bilia’s Webshop
to purchase accessories, tyres and spare parts. All new
and used cars in stock are posted on Bilia’s websites.
Netbil.se is a car auction site for private and corporate
customers.
Bilia is active on social media for the purpose of
marketing and communication with its customers. Social
media are also effective channels for quickly snapping
Interest in the customer’s needs is fundamental for
achieving Bilia’s vision of being the best service company
in the business. Customer satisfaction is monitored
daily via Mystery Shopping and other customer surveys
to ensure that the ambitious goals are met. Bilia’s
CRM system is an important tool that makes it easier
to strengthen the customer relationship. It is through
a genuine interest in the customer that Bilia is able to
help customers with everything having to do with car
ownership.
Core values
Attractive car ownership
Bilia is responsive to customer demands and
continuously develops its range of products and services.
To enable Bilia to offer attractive car ownership, it is also
important to monitor customer satisfaction by means of
regular surveys. These surveys were expanded in 2015
to include used car sales as well.
I try to convey the
­enthusiasm I feel for the
brand to the ­customer.
It’s about selling an
­experience.
Erik Börnstedt,
Selling Sales Manager
9
Our commitment extends far
beyond the showroom
>> Contributing to a sustainable society is important for Bilia. The Group
works with this issue on several different levels. This commitment
extends from reducing the company’s own energy consumption and
environmental impact to creating a better society.
The goal of Bilia’s environmental efforts is that products
and services should have as little impact on the
environment as possible. During the year, the process of
converting to energy-saving and mercury-free LED light
sources has been a priority environmental goal.
In previous years, Bilia has also invested in modernised
ventilation. The number of chemical products has
decreased drastically, and many products have been
replaced with products with a lower environmental impact.
Water-based paints have been used for several years in
all paint coats except for the clear coat. All waste water
at Bilia’s car washes is treated to eliminate the risk that
heavy metals, oil and chemicals will leak out into the
environment. Bilia washes more than 100,000 cars a year
in eco-labelled car washes.
There are well-established routines for managing waste.
All waste oil from the service departments is collected and
recycled, as are worn-out tyres that have been replaced
at Bilia’s tyre centres. Old car batteries are also recycled
in a safe manner. Bilia reports to CDP, an organisation that
provides information to investors and other stakeholders all
over the world on the climate impact of listed corporations
and what they are doing to reduce carbon emissions.
Reduced climate impact
Since 2013, carbon dioxide emissions are measured for
most company cars used in Bilia’s operations in Sweden.
These figures serve as a basis for new objectives to
reduce the climate impact of business travel in the
company.
10
Sustainable development
Bilia’s system for video and telephone conferences has
been expanded during the year and has helped reduce
business travel within the Group; thousands of hours
of meetings per year are held today via video. Most of
Bilia’s employees in Sweden have undergone training in
environment and fire protection. Most of Bilia’s facilities
are environmentally certified to ISO 14001. Read more
about Bilia’s environmental work at bilia.com.
Social responsibility
Being a responsible member of society is important to
Bilia, and the Group supports the Swedish Childhood
Cancer Foundation in recurrent campaigns. Bilia also
supports the World Childhood Foundation by, for example,
donating a sum for each new Volvo that is sold. In the
wake of the disastrous refugee situation in Europe this
past year, Bilia has also donated money to UNHCR. As is
their tradition, Bilia’s Facebook followers voted to choose
a recipient for this year’s Christmas gift: the Swedish Child
Diabetes Foundation.
In 2016, a project will be initiated to determine how Bilia
can contribute more to a better society.
Suppliers
Bilia has high standards in the area of quality and
environment. Cooperation partners are expected to
comply with the quality requirements in ISO 9001 and
the environmental requirements in ISO 14001. When
Bilia enters into agreements with suppliers where Bilia’s
standard conditions are included, the supplier is required
Energy consumption at Bilia’s
facilities in 2015 (GWh)
80.9
80.0 GWh, 2014
Recycled batteries at Bilia’s
facilities in 2015 (tonnes)
125
93 tonnes, 2014
Recycled tyres at Bilia’s
facilities in 2015 (tonnes)
844
810 tonnes, 2014
to adhere to all of the UN’s ten Global Compact principles.
The Global Compact covers four areas: human rights,
labour, environment and anti-corruption. The vehicle
manufacturers that deliver to Bilia support the Global
Compact.
Code of Conduct
The Group’s Code of Conduct is intended to ensure
that Bilia adheres to strict ethical guidelines in order
to strengthen relationships with customers, suppliers,
employees and the rest of society. The Code regulates
Bilia’s core values and efforts on behalf of human rights,
the environment, combating discrimination, promoting
gender equality, anti-corruption efforts, handling of
conflicts of interest, information disclosure and security,
and adherence to competition rules and other laws and
ordinances on all the company’s markets.
The Code of Conduct can be read at bilia.com/en under
the tab “The Company”.
11
Complete range for a good
customer relationship
>> Bilia has authorised workshops in Sweden, Norway and Germany that offer
service and repairs. The Group’s damage centres do body and paint work,
mainly on behalf of insurance companies.
Bilia’s parts departments assist the company’s work­
shops. Bilia’s stores sell spare parts and accessories.
There is also a large wholesale operation within the
Group.
The successful concept of Personal Service
Technicians has been further developed and introduced
at more facilities. Thanks to a complete range of services
and products for attractive car ownership, Bilia has more
satisfied customers and more need sales.
To meet the customers’ increasingly complex needs,
Bilia is working to expand its range of products and
services in the Service Business.
It is easy to make appointments for service on Bilia’s
websites. Our stores and our webshop offer a wide range
of accessories such as roof boxes, bike racks and child
car seats.
The tyre and wheel business continues to grow, and
Bilia’s tyre centres offer tyre storage (tyre hotel), wheel
alignment etc. One step in streamlining the work in the
workshops is the use of equipment that automatically
measures the tyres’ tread depth, pressure and oblique
wear.
When they purchase a car, customers in Sweden
and Norway are offered service subscriptions, which
strengthens the customer relationship. At the end of the
year, Bilia had some 59,600 active service subscriptions.
The Bilia card is an easy way for customers in
Sweden to gather their car costs and get a bonus on
their purchases. Today more than 271,000 Swedish car
owners have a Bilia card.
12
Service Business
Events during the year
Turnover in the Service Business increased in Sweden
and Norway. Repair operations, which account for
approximately 20 per cent of the total Service Business,
reported much higher turnover during the year.
Bilia intensified its campaigns for the Service 6+
concept for older cars. The concept contributes to more
workshop hours and increased need sales. The number
of older cars at our workshops declined slightly during
the year. We are not satisfied with the outcome and are
continuing our promotional efforts during 2016.
Earnings
Operating profit in the Service Business amounted
to SEK 479 M (402). The improvement is mainly
attributable to higher turnover, which, after adjustment
for acquisitions and disposals, increased by about 6 per
cent.
Challenges and opportunities
The safety systems in new cars reduce the frequency
of damage, resulting in fewer labour hours at the
workshops. Bilia is therefore continuing its campaign
to attract owners of older cars (6+). Efforts are also
continuing to promote need sales of tyres, auto glass,
brake fluid etc. The Service Business benefits when
more customers sign different types of subscription
agreements.
Service Business
• Service centre
• Spare parts
• Stores and webshop
• Glass centre
• Damage centre
• Car wash
• Tyre centre
• Accessory services
2013
2014
2015
Net turnover, SEK M
4,050
3,981
4,491
Share of turnover, %
22
21
21
Operating profit, SEK M
351
402
479
Operating margin, %
8.7
10.1
10.7
Number of employees
2,386
2,459
2,490
Number of service agreements 36,000 53,800 59,600
Number of wheels in storage
161,000 187,800 192,600
13
Dedicated facilities
strengthen the business
>> In the Car Business, Bilia offers new and used cars and transport vehicles of
leading brands. Car sales are a hub in Bilia’s operations and generate added
values in the form of accessory services and need sales.
Altogether, Bilia has about 70 dealerships in Sweden,
Norway and Germany that offer Volvo, BMW, Ford,
Renault, Toyota, Lexus, Dacia, Hyundai and MINI cars
as well as Renault, Ford, Dacia and Toyota transport
vehicles. The new car business is divided into a private
market and a corporate market. Of the 37,490 new cars
delivered in 2015, about 55 per cent went to corporate
customers and 45 per cent to private customers.
Sales of used cars are handled in a separate
organisation with a strong focus on rapid turnover. Last
year this business recorded its best earnings in the
company’s history.
Financing is an important part of car sales and can also
be a prerequisite for the customer to be able to buy the
car. Bilia cooperates with Volvofinans Bank AB, DNB and
the different brands’ own finance companies.
Events during the year
Bilia acquired a Toyota and Lexus operation in Norway at
the beginning of the year. A Lexus operation located in
Stockholm and Malmö and representing 42 per cent of the
brand’s total sales in Sweden was acquired at the end of
the year. Furthermore, Bilia acquired a BMW operation in
Germany with four facilities north of Frankfurt.
14
Car Business
The trend of streamlining sales with brand-specific
facilities has grown stronger, which is an advantage for
Bilia since we represent strong brands and have large
volumes.
Earnings
Operating profit in the Car Business amounted to SEK
286 M (185). The improved profit is mainly attributable
to increased sales and a higher gross profit margin from
sales of used cars.
Challenges and opportunities
Bilia has increased its car sales during the year, but
the company’s market share in new car sales declined
slightly, amounting to 8.3 per cent (8.5) in Sweden and
4.5 per cent (4.8) in Norway.
The sales organisation’s processes and procedures
have been a focus area during 2015, which led to
an improvement in efficiency. Car sales also affect
the Service Business, since each car sold generates
workshop hours and need sales. A long-term customer
relationship is cemented by service subscriptions sold
together with the car.
Car Business
• Sales of new and
used cars
• Financing and
insurance
Net turnover, SEK M
• Sales of
accessories
2013
2014
2015
13,254
14,132
15,694
Share of turnover, %
72
74
74
Operating profit, SEK M
67
185
286
Operating margin, %
0.5
1.3
1.8
35,627
37,744
41,102
Number of used cars delivered 33,606
Number of employees
721
33,566
735
37,542
783
Number of new cars delivered
15
Financial overview
Income statement
SEK M
Net turnover
Cost of goods sold
Gross profit
Operating profit, excluding items affecting comparability
Items affecting comparability
Operating profit
Net financial items
Profit before tax
Profit for the year from continuing operations
Loss from discontinued operation, net after tax
Net profit for the year
Earnings per share, SEK
Earnings per share from continuing operations, SEK
Weighted average number of shares, ‘000
Key ratios
Operating margin, %
Return on capital employed, %
Return on equity, %
Operating cash flow, SEK M
Equity/assets ratio, %
Equity per share, SEK
Dividend per share, SEK
Number of employees, 31 December
16
Financial overview
2013
2014
2015
17,656
–14,883
2,773
395
–27
368
–1
18,446
–15,533
2,913
553
9
562
–7
20,443
–17,076
3,367
731
198
929
4
367
290
—
290
555
452
–67
385
933
731
–84
697
5.85
5.85
49,529
7.65
9.00
50,310
12.85
14.50
50,406
2013
2014
2015
2.1
17.7
17.0
83
29.9
36.25
4.50
3,401
3.0
19.8
21.0
748
26.6
36.70
6.00
3,521
4.5
36.2
33.2
212
27.7
40.75
7.50
3,613
Items affecting comparability
Items affecting comparability for the
year mainly pertain to redemption of
PRI liability in the amount of SEK 197 M.
Net financial items
Net financial items improved by SEK
11 M. The main reason was higher
income from associated companies
and redemption of pension liability.
Discontinued operation
The operation in Denmark was
discontinued during the year, and the
loss, net after tax, amounted to SEK
84 M (loss: 67).
Proposed dividend
Both the Car and Service Businesses
reported better earnings
>> Demand for cars and service was slightly better compared with last
year, and the Group reported its best profit ever.
Bilia delivered 41,102 new and 37,542 used cars, which
was 10 per cent more than in 2014. The Car Business
reported an operating profit of SEK 286 M (185) and an
operating margin of 1.8 per cent (1.3). The improvement is
mainly attributable to sales of used cars, which reported
a profit that was SEK 81 M better than in 2014. Higher
turnover and a larger gross profit margin resulted in
strong earnings from sales of used cars. Earnings from
sales of new cars improved by SEK 25 M, due mainly to
higher turnover and a higher gross profit margin.
Demand in the Service Business was strengthened
during the year, and operating profit amounted to SEK
479 M (402) while the margin amounted to 10.7 per cent
(10.1). Underlying turnover, adjusted for acquisitions and
disposals, increased by about 6 per cent in the Service
Business. The increase is explained by slightly improved
demand, together with increased efforts to promote
service subscriptions, tyre hotels and need sales. The
Group’s operating profit, excluding items affecting
comparability, amounted to SEK 731 M (553) and net
profit for the year to SEK 647 M (385). Group overheads
in relation to turnover amounted to 12.9 per cent (12.8).
Items affecting comparability pertain mainly to the
earnings effect before tax, SEK 197 M, of the transfer of
the Swedish pension liability to Alecta.
The operation in Denmark was discontinued during the
year, and the loss, net after tax, amounted to SEK 84 M
(loss: 67).
In response to the year’s good earnings, employee
bonuses totalling SEK 25 M (21) were approved. The
Board of Directors has also proposed an increased
dividend to the shareholders.
Stocks of used cars increased at the end of the year,
but are at a good level with the exception of Norway. The
turnover rate for used cars increased, amounting to just
under 11 times per year. Operating cash flow amounted to
SEK 212 M (748). The decline is attributable to increased
tied-up capital at year-end 2015.
Industry analysts predict that the car markets in
Sweden and Norway in 2016 will be on a par with the
situation in 2015.
Group overview 17
Record market in Sweden
>>
In Sweden, Bilia has 77 dealerships in five regions: Stockholm, Gothenburg,
Malmö, Mälardalen and Skaraborg. The Swedish operation represents nine car
brands: Volvo, BMW, Ford, Renault, Toyota, Lexus, Dacia, Hyundai and MINI.
The Swedish market for new cars grew during the year
by 14 per cent to a record high of 345,108 units (303,948),
which means that 2015 was the best car year in history. A
clear trend during the year was the sharp increase in private
leasing. Corporate sales remained strong, and about 55–60
per cent of all cars were registered to companies. Demand
in the Service Business was at a good level in 2015.
Campaigns directed at the important stock of older cars are
continuing during 2016 as well.
Bilia delivered 29,546 new cars (26,827), 27,253 used
cars (25,060), 3,000 new transport vehicles (2,636) and
1,319 used transport vehicles (1,146). The used cars stock
and its age structure remained at a very good level, and
the turnover rate in the stock reached a record level of
11.9 times.
Events during the year
A new MINI dealership was inaugurated in southern
Stockholm in August.
Kaiser Bil AB, with sales and service of Lexus, was
­acquired in October. The company operates three
­facilities in Stockholm and one in Malmö.
A decision was made in October to discontinue sales
of new Ford cars. We will, however, retain our service
authorisation.
Total market
Cars
Cars
Cars
Number
Number
ofof
of
new
new
cars
cars
Number
new
cars
32,000
32,000
32,000
320,000
320,000
320,000
Transport
Transport
vehicles
vehicles
Transport
vehicles
24,000
24,000
24,000
18
80,000
80,000
80,000
8,000
8,000
8,000
000
000
2013
2013
2014
2015
2013 2014
2014 2015
2015
Sweden
Challenges and opportunities
Efforts to tie the customers closer by means of products
such as service subscriptions and tyre hotels continue.
Some 50,000 customers had signed service subscriptions
at year-end and more than 162,000 wheels were stored in
Bilia’s tyre hotels.
During the year we have developed and implemented a new set of core leadership values and started a
process for increasing the proportion of women in the
company. We are convinced that these efforts will help us
to become an even better employer with stable earnings,
a higher proportion of satisfied customers and happy
employees. Efforts to boost customer satisfaction will be
a priority focus area during 2016.
Bilia’s share of each brand’s sales
%%%
999
666
16,000
16,000
16,000
160,000
160,000
160,000
Operating profit was very strong and amounted to SEK
629 M (458), with a margin of 4.3 per cent (3.5). The Service
Business’s operating profit improved by SEK 32 M, due
mainly to higher turnover and a higher gross profit margin.
The Car Business’s operating profit improved by all of SEK
132 M. The improvement is mainly attributable to higher
turnover in sales of new cars plus increased turnover and a
higher gross profit margin in sales of used cars.
Bilia’s sales & market share
Number
Number
ofof
new
new
cars
cars
Number
of
new
cars
400,000
400,000
400,000
240,000
240,000
240,000
Earnings
333
000
2013
2013 2014
2014 2015
2015
2013
2014
2015
Cars
Cars
Cars
Number
Number
Number
Market
share
Market
Market
share
share
Transport
vehicles
Transport
Transport
vehicles
vehicles
Number
Number
Number
Market
share
Market
Market
share
share
%%%
40
40
40
2013
2013
2013
2014
2014
2014
2015
2015
2015
30
30
30
20
20
20
10
10
10
000
Lexus
Renault
Volvo
Hyundai
Toyota
Lexus
Renault
Volvo
BMW
Mini
Dacia
Ford
Hyundai
Toyota
Lexus
Renault
VolvoBMW
BMWMini
MiniDacia
DaciaFord
Ford
Hyundai
Toyota
71%
Sweden’s share of
turnover 2015
16
26
6
16
1
1
10
Bilia in Sweden
2013
umber of new cars
00,000
Cars
Number of new cars
32,000
20,000
Transport vehicles
24,000
40,000
6
16,000
60,000
3
8,000
80,000
0
%
9
2013
2014
2015
0
2013
2014
2015
0
Cars
Number
Market share
Transport vehicles
Number
Market share
Net turnover, SEK M
2013
2014
Share of turnover, %
%
40
30
Operating profit, SEK M
Service
2015
283
319
351
38
21
121
18
253
25
Total
342
Lexus Renault Volvo BMW Mini Dacia Ford Hyundai Toyota
458
629
20
Cars
Fuels
10
0
2014
11,567 13,110 14,513
2015
65
71
71
Operating margin, %
Service
10.3
11.0
11.2
Cars
0.5
1.2
2.3
Fuels
2.0
1.7
2.5
Total
3.0
3.5
4.3
Bilia’s deliveries broken down by brand, %
The most fun part of the
job is meeting the customer,
establishing a good relationship
and having a good dialogue.
Cars
Volvo
BMW
Renault
Ford
Toyota
Dacia
Hyundai
Mini
Lexus
59
15
10
5
4
2
2
2
1
Transport vehicles
Renault
50
Ford
42
Dacia
5
Toyota
3
Stefan Holmberg,
Front End Salesman
19
Growing with Toyota and Lexus
>>
Bilia has 25 dealerships in Norway, eight of which are associated with the new
Toyota and Lexus operations. The Norwegian operation offers five car brands: Volvo,
BMW, Toyota, Ford and Lexus, and carries out authorised service on MINI.
The market
The car market in Norway was at a high level for the fifth
year in a row with a total market of 150,686 new cars
(144,202). This means that 2015 was the third best car
year ever. Electric cars increased their share of the total
market to 17.1 per cent (12.5). A fee modification during the
year resulted in increased sales of plug-in hybrids, whose
market share rose to 5.2 per cent and is expected to
increase further during 2016.
BMW’s market share decreased to 6.3 per cent (6.7),
which is still the second-highest market share in history.
Volvo reported a reduced market share of 6.6 per cent
(7.9), while Ford enjoyed a positive trend with a market
share of 5.6 per cent (5.4). Bilia delivered 7,699 new
cars (7,879), 8,617 used cars (7,360), 612 new transport
vehicles (402) and 159 used transport vehicles (—). Bilia’s
sales accounted for 5.1 per cent (5.5) of total car sales in
Norway. The order backlog increased from 1,099 cars to
2,488 during 2015.
Events during the year
Toyota Horten-Tønsberg AS and Toyota Hell Bil AS
were taken over in March and subsequently merged to
form Toyota Bilia AS. The Toyota operation’s 2015 sales
amounted to 6.7 per cent of total Toyota sales in Norway,
Total market
Number
Number
Number
ofof
of
new
new
new
cars
cars
cars
180,000
180,000
180,000
666
6,000
6,000
6,000
444
60,000
60,000
60,000
3,000
3,000
3,000
222
000
000
000
20
Cars
Cars
Cars
Transport
Transport
vehicles
vehicles
Transport
vehicles
2013
2013
2013 2014
2014
2014 2015
2015
2015
Norway
Earnings
The operating profit of SEK 159 M (147) is the best ever.
Operating profit in the Car Business amounted to SEK 38
M (64). New car sales reported a considerably lower profit
compared with 2014, due mainly to lower turnover and
higher relative costs. Used car sales developed positively,
and earnings were the best ever. The Service Business
showed a positive trend, with an operating profit of SEK
122 M (83).
Challenges and opportunities
There is great uncertainty regarding the future trend on
the Norwegian car market due to low oil prices, a weak
currency and slightly higher unemployment. There is
also a political will to reduce driving in Oslo. Thanks to
improved processing of used cars and the establishment
of the Personal Service Technician concept, Bilia stands
well-equipped to meet 2016.
Bilia’s sales & market share
Number
Number
ofof
of
new
new
cars
cars
Number
new
cars
9,000
9,000
9,000
120,000
120,000
120,000
while Lexus sales represented 15.1 per cent. All BMW
facilities were upgraded to the latest standard during the
year.
The sales agreement with Ford was terminated in
October. The period of notice for the affected facilities in
Drammen, Hønefoss and Økern is two years.
Bilia’s share of each brand’s sales
%%%
2013
2013 2014
2014 2015
2015
2013
2014
2015
%%
%
Cars
Cars
Cars
Number
Number
Number
Market
share
Market
Market
share
share
Transport
vehicles
Transport
Transport
vehicles
vehicles
Number
Number
Number
Market
share
Market
Market
share
share
2013
2013
2013
2014
2014
2014
2015
2015
2015
40
40
40
30
30
30
20
20
20
10
10
10
000
Volvo
Volvo
Volvo
Lexus
Lexus
Lexus
BMW
BMW
BMW
Toyota
Toyota
Toyota
Ford
Ford
Ford
28%
Norway’s share of
turnover 2015
1
3
1
3
1
1
11
4
Bilia in Norway
umber of new cars
80,000
Cars
Transport vehicles
20,000
60,000
0
Number of new cars
9,000
6
%
6,000
4
3,000
2013
2014
2015
0
2
2013
2014
2015
0
Net turnover, SEK M
2013
2014
Share of turnover, %
%
Cars
Number
Market share
Transport vehicles
Number
Market share
40
2014
2015
5,324
5,738
29
28
60
83
122
57
–1
64
—
38
–1
116
147
159
9.7
Operating profit/loss, SEK M
Service
30
20
Cars
Fuels
10
0
2013
5,087
2015
29
Volvo
Lexus
Total
BMW
Toyota
Operating margin, %
Service
Ford
5.9
7.7
Cars
1.3
1.4
0.8
Fuels
–7.9
—
–3.9
Total
2.3
2.8
2.8
Bilia’s deliveries broken down by brand, %
Cars
Volvo
BMW
Toyota
42
33
14
Ford
Lexus
9
2
Transport vehicles
Ford
73
Toyota
27
21
Tough competition on a strong market
>>
In Germany, Bilia has four facilities north of Frankfurt that are dealerships for BMW
and MINI. The German operation has been a part of Bilia since 1 October 2015.
The market
Challenges and opportunities
The total market for cars increased by 6 per cent to
3,206,042 cars. Bilia delivered 245 new cars and 194
used cars during the period 1 October to 31 December
2015.
The operation is well-managed and has a good reputation
among customers. There is a potential for improvement
in the Service Business and in the handling of used cars.
Furthermore, there are good opportunities for growth
in the region by means of acquisition and subsequent
efficiency-boosting measures.
Earnings
Operating profit for the fourth quarter of 2015 amounted
to SEK 1 M, which was charged with acquisition costs of
SEK 1 M. The Service Business reported strong earnings,
while new car sales reported weak earnings. Due to
the design of the bonus system for new cars, the BMW
dealers often report poorer earnings during the fourth
quarter.
Operation in Denmark discontinued
>>
Bilia’s Board of Directors decided in March 2015 that the operation in Denmark
would be sold or shut down.
Most of the operation was disposed of at the end of the
second quarter, and the rest during the month of August
2015. At year-end there remained land which is for sale
22
Germany / Denmark
and which has a carrying amount of SEK 7 M. The loss
from the discontinued operation, net after tax, amounted
to SEK 84 M (loss: 67).
1%
Germany’s share of
turnover 2015
4
Bilia in Germany
2015
ntal nya bilar
80 000
20 000
Personbilar
Antal nya bilar
8 000
Transportbilar
6 000
%
6
4
4 000
60 000
0
2
2 000
2013
2014
2015
0
2013
2014
2015
0
Net turnover, SEK M
2013
2014
Share of turnover, %
%
Personbilar
Antal
Marknadsandel
40
Transportbilar
Antal
Marknadsandel
20
30
1
Operating profit/loss, SEK M
Service
6
Cars
Fuels
10
0
173
2015
Volvo
BMW
Total
–5
—
1
Ford
Operating margin, %
Service
5.3
Cars
–6.5
Fuels
—
Total
0.4
Bilia’s deliveries broken down by brand, %
Germany / Denmark
Cars
BMW
MINI
86
14
xxxx
xxx,
100
23
Stock split to stimulate trading
>>
The Bilia share has been listed on the NASDAQ Stockholm exchange since 1984.
It is traded under the ticker code BILI A and is included in the OMX Stockholm Mid
Cap PI index. At year-end 2015, Bilia had 35,183 shareholders (35,282).
Dividend policy
Stock split
Over a business cycle, Bilia’s dividend should provide
the shareholders with a competitive dividend yield in
comparison with similar listed companies. In addition, Bilia
should strive for good dividend growth. According to a
decision by the Board of Directors, the dividend should
amount to at least 50 per cent of the net profit for the year.
In determining the size of the dividend, the company’s
sustained earning capacity, cash flow, investment needs
and overall financial position are also taken into account.
After Bilia carried out a 2:1 stock split in May 2015,
the number of shares increased from 25,204,805 to
50,409,610 with an equal number of votes. The purpose
of the stock split is to stimulate trading in the share.
Dividend
Bilia’s Board of Directors proposes to the Annual General
Meeting of 8 April 2016 that a dividend of SEK 7.50 per
share (6.00 after adjustment for the stock split) be paid.
Warrants
During the year, 87,986 warrants were exercised to
subscribe for new shares, resulting in a new issue of SEK
1 M. An additional 264,682 warrants were exercised at
the beginning of January 2016. The remaining warrants
expired on 5 January 2016.
Total yield
Price of Bilia share
%
SEK
400
200
300
150
100
200
The highest price quoted
during the year was SEK
210.00 on 3 December, and
the lowest was SEK 112.25
on 16 January.
100
0
11
12
A-share
13
14
0
year
11
OMX Stockholm GI
24
15
50
Share, AGM and important dates
Source: NASDAQ
12
A-share
13
14
15
year
OMX Stockholm PI
Source: NASDAQ
Ownership by categories
31 December 2015, %
Bilia’s biggest shareholders
at 31 December 2015, %
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Investment AB Öresund
The Qviberg family
Anna Engebretsen with family
Handelsbanken funds AB RE JPMEL
JP Morgan Bank Luxembourg SA
SEB Investment management
SSB CL Omnibus AC
JPM Chase NA 1)
NTC various funds, Chicago 2)
CBNY-DFA-INT SML CAP V
Försäkringsaktiebolaget Avanza pension
Mellon Omnibus 30% Agent F ITS Clients
CBNY-Norges Bank
Mellon US Tax exempt Account
Jan Pettersson with family
10.1
10.0
4.2
3.6
2.7
2.5
2.2
2.2
1.8
1.6
1.5
1.5
1.5
1.3
1.0
JPM Chase NA has 9 funds with the same name and address.
They have been aggregated in the table above.
2)
NTC has 10 funds with the same name and address.
They have been aggregated in the table above.
1)
Foreign owners, 39 (36)
Swedish private > 500, 33 (29)
Öresund, 10 (10)
Swedish institutions, 8 (9)
Swedish private < 500, 6 (10)
Swedish unit trusts, 4 (6)
2015
2014
Distribution of shares, 31 December 2015
Shareholding
1–1,000
1,001–10,000
10,001–100,000
100,001–
Total number of shareholders
Total number Combined number Percentage of
of shareholders
of shares owned share capital
32,426
5,598,267
11.1
2,476
219
62
35,183
6,284,234
6,635,007
31,918,544
50,436,052
12.5
13.1
63.3
100.0
Annual General Meeting
Turnover of Bilia share
160,000
20
140,000
16
120,000
100,000
12
80,000
The Annual General Meeting will be held at 11:00 a.m.
on Friday, 8 April 2016, at Bilia’s facility at Haga Norra,
Frösundaleden 4, Stockholm. Notice of the AGM will be
published in Post- och Inrikes Tidningar (the official Swedish
gazette), on Bilia’s website and in a small notice in Dagens
Industri. More information on the AGM can also be found
under Corporate Governance at bilia.com.
Notification of attendance can be made online at bilia.com
or by telephone at +46 31 709 55 04 by 4 April 2016 at the
latest.
8
60,000
40,000
4
20,000
0
0
10
11
12
13
14
Turnover, daily average per month, number of shares
Turnover, daily average per month, SEK M
Source: NASDAQ
Important dates
Annual General Meeting 2016
Report for the first three months of 2016
Report for the first six months of 2016
Report for the first nine months of 2016
8 April
27 April
27 July
28 October
25
You can reach us round the clock at Bilia Nu +46 771 400 000
You can also visit our website bilia.com
PRODUCTION: NEWSROOM
Bilia AB (publ)