Year-end Report Rejlers AB January–December 2015

Strong growth in Telecommunications and IT
Fourth quarter
» Revenue increased by 26 per cent to SEK 586.7 million (464.1)
» Operating profit was SEK 9.1 million (32.5)
» Operating margin amounted to 1.6 per cent (7.0)
» Profit after tax was SEK 5.2 million (24.7)
» Cash flow from operating activities amounted to SEK 21,1 million (47,9)
» Earnings per share before dilution were SEK 0.42 (2.01)
» Diluted earnings per share were SEK 0.40 (2.01)
January–December
» Revenue increased by 10 per cent to SEK 1,875.5 million (1,711.5)
» Operating profit was SEK 71.0 million (48.6)
» Operating margin amounted to 3.8 per cent (2.8)
» Profit after tax was SEK 51.2 million (33.9)
» Cash flow from operating activities amounted to SEK 42,5 million (68,2)
» Earnings per share before dilution amounted to SEK 4.15 (SEK 2.78) and diluted
earnings per share were SEK 3.96 (2.75)
» The Board proposes an unchanged dividend of SEK 2.00 per share (2.00)
Statement from President and CEO Peter Rejler
In the final quarter we achieved strong growth through the acquisitions of
Embriq in Norway and Orbion Consulting in Sweden. These acquisitions will boost
our annual revenue by around SEK 500 million and increase our workforce by
around 270 new employees. Embriq provides IT services within rationalisation of
infrastructure and energy to customers worldwide. Orbion Consulting offers
turnkey solutions within mobile and landline telecommunications networks. The
acquisition establishes Rejlers as one of Sweden’s largest engineering
consultancy firms within the telecommunications sector.
In order to coordinate our investments within digitised technology solutions we
are setting up a new Nordic segment, IT Solutions, which will offer
comprehensive IT solutions, primarily within the energy sector.
Operating profits declined in the fourth quarter compared with the same period
in the previous year due to costs associated with integration of acquisitions,
lower order volumes in the industrial sector in Sweden, and start-up costs of
major projects in Norway. Rejlers Finland posted positive results despite the
weak industrial market, while Rejlers Norway was awarded some major contracts in
the quarter. In Rejlers Sweden we are taking strong actions to improve
profitability which will affect earnings in the first half of 2016.
Climate and environmental challenges are boosting demand for our services aimed
at energy efficiency and sustainable energy solutions. We see good opportunities
for growth in the telecommunications market due to increased customer demand for
turnkey solutions. New investments in residential and office construction are
boosting demand for our expertise.
We were awarded several important contracts in the quarter. These included a
framework agreement with Svenska Kraftnät on creating a modern and climate
friendly energy system, a new agreement with TeliaSonera on supplying
telecommunications services, and a contract with the City of Helsinki Real
Estate Department, which is building a new campus for Helsinki Metropolia
University.
By focusing on business development and turnkey solutions, we are planning to
achieve our growth target of 2020-3030-4040. The aim is to improve the operating
margin to 8 per cent over a business cycle. In order to improve our
opportunities for achieving our profitability and growth targets, I stepped down
as President of Rejlers Sweden on 1 January 2016, and Jonas Thimberg took over
the role. I am now able to focus exclusively on the Nordic business as a whole.
For further information, please contact:
Peter Rejler, President and CEO, e-mail: peter.rejler@rejlers.se
Mats Åström, CFO, tel. +46 (0)72 050 22 40, e-mail: mats.astrom@rejlers.se
Rejlers is one of the largest engineering consultancy firms in the Nordic
region. Our 2,100 experts work with projects in the areas of Building and
property, Energy, Industry and Infrastructure. At Rejlers, you will meet
specialist engineers with the knowledge, cutting edge expertise and energy to
achieve results. We are still experiencing rapid growth and can now be found in
80 locations in Sweden, Finland and Norway. Rejlers recorded revenue of SEK 1.9
billion in 2015 and its class B share is listed on NASDAQ Stockholm.
The information in this interim report is that which Rejlers AB is required to
publish in compliance with the Swedish Securi-ties Market Act and/or the Swedish
Financial Instruments Trading Act. This information was released for publication
on 9 February 2016 at 8.00 am. This interim report is also available in Swedish.
The English version is a translation of the Swedish original. In the case of any
discrepancy between the two, the Swedish version takes precedence.