Over the past three years, B&B TOOLS has increased its earnings and profitability (P/WC has grown from 15 to 27 percent), generated more than SEK 1 billion in cash flow and reduced its debt considerably through clear, decentralised profit responsibility.
To create even stronger conditions for increased growth and profitability across all areas of the B&B TOOLS Group, the Board of Directors has today decided to establish a new operational structure in the Group.
As of 1 April 2016, B&B TOOLS’ operating segments will be as follows:
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”Produkt Companies” FOCUS: Product ownership with strong brands REVENUE MSEK 2,300 / OPERATING MARGIN 9.6% Development and sales of premium brands that offer innovation and quality for professional users in the construction and industrial sectors. Profit units (overall): ESSVE, Skydda and Teng Tools* The segment includes product brands such as ESSVE, Fireseal, Guide, Zekler, L.Brador, Cresto and Teng Tools. |
”Market & Distribution Companies” FOCUS: End customer sales and distribution of consumables and components REVENUE MSEK 6,200 / OPERATING MARGIN 4.0%FOKUS: Sales of industrial consumables, industrial components, service and maintenance to end customers and resellers. Profit units (overall): TOOLS Sweden, TOOLS Norway, TOOLS Finland, Momentum, Luna*, Grunda and Gigant The segment includes a number of niche companies, for example Mercus – a specialist chain for work clothes, Rörick and Carl A Nilsson – service companies in electro mechanics. |
* The Teng Tools product brand is currently included in Luna, but will become a separate profit unit under the segment “Product Companies” (with focus on product ownership and proprietary brands) as of 1 April 2016.
NB: The names of the new segments and pro forma financial statement will be presented in separate press releases during the spring of 2016. The stated figures pertain to the rolling 12-month period ending 31 December 2015 (rounded).
“We now introduce a clearer and more efficient organisation – with focus on creating increased growth and earnings in our various units,” says Ulf Lilius, President & CEO of B&B TOOLS. “We are also developing the business opportunity for our product brands to even more independently drive their own growth.”
The new operating segments will entail certain changes in terms of responsibility, control and external reporting of companies and businesses. In addition to his responsibilities as President & CEO for B&B TOOLS, Ulf Lilius will assume overall responsibility for the segment “Markets & Distribution Companies” as described above. Pontus Boman, Executive Vice President and CEO of ESSVE, will have overall responsibility for the segment “Product Companies”.
NAMES OF THE SEGMENTS AND PRO FORMA FINANCIAL STATEMENT
The operating segments will be reported externally for the first time in the Interim Report for the first quarter of the 2016/2017 financial year, which will be published on 19 July 2016. More information about the new operating segments, including their final names and a pro forma financial statement, will be issued in separate press releases prior to this report.
Stockholm, 8 February 2016
B&B TOOLS AB (publ)
For further information, please contact:
Ulf Lilius, President and CEO, B&B TOOLS AB, tel: +46 10 454 77 00
Mats Karlqvist, Head of Investor Relations, B&B TOOLS AB, tel: +46 70 660 31 32
This information is such that it must be disclosed by B&B TOOLS in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act or requirements imposed in the Rulebook for Issuers on Nasdaq Stockholm. This information was submitted for publication on 8 February 2016 at 15:45 p.m.
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