I.A. Hedin Bil - Annual Report 2018 1
SUSTAINABILITY REPORT REVENUE AND EARNINGS I.A. H
edin Bil is present in several geographical locations operating in different business areas. 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 from customers, suppliers and financiers. The Hedin Code of Conduct is described in the Sustainability Report. Guidelines and other policies are published and easily accessible to all employees within the Group. The Swedish operation of I.A. Hedin Bil has a Quality and Environment policy which, together with the management system, meets the requirements of ISO 9001 & ISO 14001. The environmental certification Miljøfyrtån is implemented in parts of the Norwegian business. 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. The automotive manufacturers are working to find more environmentally friendly solutions. As a retailer in the automotive industry, there is limited ability to influence the manufacturers. However, the Hedin Group is constantly committed to its own environmental policy in order to have limited impact from facilities and workshops. In 2018, I.A. Hedin Bil continued to acquire new dealerships. The ambition is to implement the same sustainability guidelines to the newly added facilities. To ensure a long-term sustainability approach, the Hedin Group work actively to create the right conditions to reduce environmental impact. 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. EMPLOYEES During 2018, the average number of employees increased from 1,711 to 2,450. In the effort to strengthen the Hedin Bil brand as an employer, there is continued focus on leadership within the organization. The ambition is to create an organization with a high degree of job satisfaction and professional expertise. The foundation of the business is based on Security, Credibility and Accessibility. Focus is on implementing a mutual structure in the newly acquired businesses, through clarity and culture to reinforce the organization’s focus on customers, quality and competitiveness in a rapidly expanding and changing market. Net sales in 2018 increased by 66 percent to kSEK 21,043,340 (kSEK 12,657,046). The earnings after financial items decreased to kSEK 112,964 (kSEK 143,781). FINANCIAL POSITION As of December 31, 2018, cash and cash equivalents amounted to kSEK 99,724 (kSEK 53,759). Together with the unused overdraft facilities, there was a payment readiness of MSEK 234 (MSEK 786). The Group's total assets amounted to kSEK 7,681,509 (kSEK 6,338,813) at balance sheet date. Investments during the year in fixed assets and businesses amounted to kSEK 1,247,729 (kSEK 1,839,920). PARENT COMPANY I.A. Hedin Bil AB operations consist primarily of managing and developing its existing subsidiaries. The profit after financial items amounted to kSEK -45,870 (kSEK -20,125) and net profit for the year amounted to kSEK 40,296 (kSEK 27,494). PROPOSED DISTRIBUTION OF UNAPPROPRIATED EARNINGS The Board of Directors proposes that unappropriated earnings of kSEK 350,528 be distributed as follows: Carried forward Total Amount in thousand SEK (kSEK) 350,528 350,528 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 / 2018 53