I.A. Årsredovisning 2020 ENG 1
Sustainability report The I.A. Hedin Bil Group ha
s many employees and several business areas in different geographical locations. It is therefore important to share fundamental values on how the business should be conducted. The approach is essential for the business and guides on the challenges faced at work. The commitment, without compromise, is to act within proper ethical guidelines. This is a crucial ingredient to gain trust and confidence from customers, suppliers and financiers. We have set up guidelines and standards to help our employees to have a professional approach in solving ethical issues that may arise at work. This guidance is described in our Code of Conduct, as part of the Sustainability Report. The Swedish operations of I.A. Hedin Bil has an overall Quality and Environment policy which, together with the quality- and management system, meets the requirements of ISO 9001 & ISO 14001. The environmental certification Miljøfyrtån is implemented in parts of the Norwegian business. Guidelines, other policies and Code of Conduct are published and easily accessible to all employees within the Group. I.A. Hedin Bil is an automotive retailer that does not manufacture the products it distributes. Manufacturing and developing of vehicles are the responsibility of the car manufacturers. As a retailer in the automotive industry, there is limited ability to influence the car manufacturers. However, the I.A. Hedin Bil Group is constantly committed to its own environmental policy in order to limit the impact from facilities and workshops. In 2020, I.A. Hedin Bil continued to acquire and build new dealerships. The ambition is to implement the same sustainability guidelines to the newly added facilities. To ensure a long-term sustainability approach, the I.A. Hedin Bil Group work actively to create the right conditions to reduce our environmental impact, based on the environmental aspects that are identified as crucial. We are constantly working to improve the leadership and to develop the company forward to strengthen our brand as an employer. We are working with educational efforts for our managers and employees to meet new technologies and digital trends. Our digital introductory training for new employees supports a structured introduction, which we believe creates a strong employee commitment and gives the new employee the right conditions for the new profession. The purpose is to create an organisation where our employees are characterized by their sense of satisfaction and professional skills. The basis of all our work is Reliability, Trustworthy and Availability. In accordance with chapter 6, section 11 of the Annual Accounts Act, the Sustainability Report is prepared as a separate report from the annual report. The Sustainability Report is available from the company, or on the website www.hedinbil.se. Revenue and earnings Net sales in 2020 increased by 8 percent to MSEK 24,064 (MSEK 22,301). The comparability is affected by acquisitions during 2019 and 2020. The business model of Mercedes-Benz passenger cars has switched into an agent model during 2019, meaning that invoicing to end customers are made directly from the importer. Adjusted for acquisitions and other changes, net sales increased by 6 percent. Operating profit increased by MSEK 368 to MSEK 729 (MSEK 360). Operating margin increased to 3.0 percent (1.6 percent). From the beginning of March, several cost-saving actions have been taken to minimize the economic effects of Covid-19, which together with previous actions have improved the result. Actions include temporary and permanent staff reductions, and a freeze on recruitments, purchases and travels. Where possible, we have used financial support packages for furloughing. In Belgium, the government took over most of the personnel cost when the business was lock-downed, which decreased cost by MSEK 32. We have also used government support in Sweden and Norway, which has reduced personnel cost by MSEK 20 in Sweden and MSEK 8 in Norway. Government support for furloughing is reported as Other operating income, Note 5. The margin on operational earnings in vehicles sales amounted to 2.1 percent (1.0 percent). The sales of the new vehicles in comparable business decreased by 1 percent. Sales of used vehicles increased by 10 percent. Sales of used cars in Sweden within Hedin Certified has had a positive development during the year and has increased by 13 percent. Gross margin increased in new vehicles. The margins in used vehicles have recovered after a decline during the spring. The margin of operational earnings in after sales was 7.4 percent (4.6 percent). Earnings have improved through efficiency improvements and cost reductions. The operational earnings in Sweden increased by MSEK 163 compared to last year. A lower volume in sale of new vehicles, are offset by increased sales volume and profitability in used cars. The profitability in after sales has improved by efficiency improvements. The operational earnings in Norway increased by MSEK 183 compared to last year through higher vehicle sales in the new car business and increased margins. Efficiency improvements in after sales have also contributed to the increased profit. In Belgium, where the business in periods has had full or partly lock-downs, the profit increases by MSEK 28. The profit before taxes amounted to MSEK 511 (MSEK 148). Financial report As of December 31, 2020, cash and cash equivalents amounted to MSEK 132 (MSEK 157). Together with the unused overdraft facilities, there was a payment readiness of MSEK 843 (MSEK 359). The Group's total assets amounted to MSEK 13,540 (MSEK 14,323) at balance sheet date. Investments during the year in fixed assets, excluding leasing vehicles and right-of-use assets, amounted to MSEK 170 (MSEK 186). Parent company I.A. Hedin Bil AB operations consist primarily of managing and developing its existing subsidiaries, as well as providing intracompany services. The profit after financial items amounted to kSEK 61,196 (kSEK -36,718) and net profit for the year amounted to kSEK 122,858 (kSEK 63,297). Proposed distribution of unappropriates earnings At the disposal of the Annual General Meeting of the parent company are: Balanced earnings Profit for the year Total 531,725 kSEK 122,858 kSEK 654,583 kSEK The Board of Directors proposes that unappropriated earnings of kSEK 654,583 be distributed as follows: Balance carried forward Total 654,583 kSEK 654,583 kSEK For the company's financial development, please, refer to the following income statements and balance sheets with accompanying financial statements. I.A. HEDIN BIL AB / ANNUAL REPORT / 2020 49