Annual Report 2016

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Annual Report 2016 Annual Report 2016 34% 533 4 14 0 4 462 354 Market share in Full time Factories Sales offices Hazardous Nordic Swan Sold units Scandinavia equivalents worldwide chemicals Ecolabelled for office chairs in own products production Important events Sales per brand • An agreement was signed in December to acquire the Swedish company Malmstolen AB. The HÅG 48% acquisition completed in January 2017. _ • A new subsidiary was established in December, _RH 30% Scandinavian Business Seating Inc in USA. The _RBM 9% company will be operative from the first quarter o f 2 0 1 7. _BMA 13% • A new paint shop facility has been operating in the Røros factory since August. The new facility allows for major improvements in energy efficiency, quality and output capacity. Sales per unit • BMA as integrated into the matrix organization, including the relocation of production of the BMA Axia from Zwolle (NL) to the factory in Nässjö (SE). _Swivel chairs 64% • New showroom opened in Rotterdam (NL) and in both Stockholm and Gothenburg (SE). _Conference 32% • All four brands were presented together for the _Other 4% first time at the Orgatec Fair in Cologne (DE). • New branding concept launched for Scandinavian Business Seating. • Product News: • HÅG SoFi mesh was launched in autumn 2016 • HÅG Tribute ready for launch at the Stockholm Furniture Fair in February 2017 Sales per market 18% 18% 15% NORWAY SWEDEN 14% 13% BENELUX GERMANY DENMARK 8% UK & 7% IRELAND EXPORT 3% 2% 2% FRANCE SWITZER- LAND ASIA Røros Nässjö Zwolle Some major customers/contracts NORWAY DENMARK THE NETHERLANDS Partners Radisson SAS Blue Airport: MT Højgaard Headquarters: City Hall Wageningen: 700 HÅG Conventio 569 HÅG SoFi 7200 180 RH Mereo 220 150 RBM Noor Subsidiaries SWEDEN GERMANY King, social games Viacom Headquarters: FRANCE Production sites company, especially known 172 BMA Axia 2.5 Meshback, BETC: for Candy Crush Saga: all with Smart Active 703 HÅG Capisco 8106/8126 400 - 700 RH Logic technology PAKISTAN Telenor Pakistan: 1 111 HÅG SoFi mesh 3 REVENUES AND RESULTS (MNOK) Ebita 200 204 212 200 195 155 100 Scandinavian Business Seating 0 is a global company in the 2012 2013 2014 2015 2016 office chairs, canteen- and conference furniture segment Operating revenues 1299 1 000 1180 1037 1010 1003 0 2012 2013 2014 2015 2016 Key Figures 2016 2015 2014 3) 2013 2012 2011 2010 2009 2008 Operating revenues MNOK 1 299 1 180 1 037 1 003 1 010 1 091 1 010 989 1 289 EBITDA 4) MNOK 251 233 192 231 236 255 204 104,7 247 Operating income MNOK 212 195 155 200 204 218,7 165 45,7 207 EBITA margin % 16,3 16,5 15,0 20,0 20,2 20,0 16,4 4,6 16,1 Income before taxes MNOK 119 90 14 77 84 82 72 (8) 26 Net income MNOK 84 71 0 54 74 48 50 (9) 17 Net interest bearing-debt MNOK 962 1 084 1 056 898 574 657 618 775 900 Investments MNOK 50 39 33 61 58 28 19 31 60 Total assets MNOK 2 409 2 369 2 246 1 882 1 830 1 854 1 835 1 859 1 985 Net working capital 1) % 17 16 15 16 11 14 14 13 15 Equity share 2) % 45 39 37 40 55 49 55 49 41 No. of employees per 31.12. 546 555 480 472 475 479 463 457 633 Full time equivalents per 31.12. 533 538 469 459 462 462 451 447 617 No. of sold chairs Thousand 462 432 421 417 433 455 443 485 1) Inventory + accounts receivables - accounts payable in percent of operating revenues. 2) Includes shareholder loan. 3) Pro forma figures for the entire 2014 if the acquired companies had been part of the Group as from 01.01.2014. 4) Not adjusted for non recurring costs. Content THE ORGANISATION 1 Important events in 2016 6 About Scandinavian Business Seating 10 The CEO’s report 14 Group management 16 Corporate governance 20 Genuinly different – and better 22 HÅG – Celebrating movement 28 RH – Designed for human performance 34 BMA – Work healthy – Sit Smart! 40 RBM – New colours bring more life to rooms ANNUAL ACCOUNTS 47 Report from the Board of Directors 2016 54 Consolidated Annual Accounts 57 Notes Group 84 Annual Accounts Scandinavian Business Seating Group Co AS 86 Notes Scandinavian Business Seating Group Co AS 92 Auditor’s report CORPORATE SUSTAINABILITY 96 Stakeholders – dialogue 102 Materiality and boundaries 104 Finance 106 The environment – background 110 The environment – management and strategy 112 Environmentally efficient products 114 Climate – energy and GHG (CO2) emissions 118 Resources – materials 124 Circular Economy 127 Resources – waste 128 Responsible supply chain 130 Workplace – workforce 138 Local communities 142 Product liability – certificates 144 Product matrix 146 GRI-index 154 Contacts 5 RH Mereo and RBM Noor 6 Annual Report 2016 Scandinavian Business Seating The organisation About Scandinavian Business Seating Scandinavian Business Seating is the market leader in Scandinavia for the design, development and production of office chairs and seating for private and public office environments. Over the course of the last few years, the group has also cemented its position as the largest manufacturer of office chairs in Western Europe, in terms of value. Scandinavian Business Seating owns the brands HÅG, RH, BMA, RBM and Malmstolen. All brands operate in the premium segment of the office chair market. Scandinavian Business Seating, with 546 employees, is dedicated to realising the company’s vision: Making the world a better place to sit. The group has its head office in Oslo and production units in Norway, in Sweden and in the Netherlands. In addition, the group has its own sales offices in Denmark, Germany, the Netherlands, the UK, France, Belgium, Switzerland, Singapore, China, Hong Kong and Australia, as well as a large network of indepen- VISUAL DESIGN dent dealers and partners in other important markets for the company. OWNERSHIP STRUCTURE Scandinavian Business Seating was founded in June 2007 by a merger of HÅG, RH and RBM. In June 2015 the com- pany acquired the Dutch business BMA Ergonomics, and in January 2017 the Swedish Malmstolen was acquired. All companies were strong privately-owned start-ups with long traditions and extensive experience of developing, producing and marketing of office chairs in Europe. HÅG has existed since 1943, RBM since 1975, RH since 1977, BMA since 1988 and Malmstolen since 1994. Triton became owners on the 8th of October 2014 after Ratos AB, who had owned Scandianvian Business Seating since 2007. The Triton funds invest in and support the positive development of medium-sized businesses head- 7 SUSTAINABILITY Scandinavian Business Seating’s main market is Scandinavia, which accounts for around 50 per cent of its total sales. quartered in Northern Europe, Italy and Spain. Within BUSINESS STRATEGY this European region, Triton focuses on businesses in Scandinavian Business Seating has clear ambitions to the Industrial, Business Services and Consumer/Health expand still further, thereby cementing and strengthening sectors. Triton seeks to contribute to the building of better its position as the leading office chair specialist in Europe. businesses for the longer term. The 29 companies currently We abide by our motto of “different and better”, working in Triton’s portfolio have combined sales of over with innovative new products and pursuing an offensive €13.8 billion and around 76,000 employees. For further marketing strategy, inspired by two distinct market trends information: www.triton-partners.com. – health and sustainability. MARKET POSITION SALES AND DISTRIBUTION Scandinavian Business Seating’s main market is The group’s products are distributed via a network of inde- Scandinavia, which accounts for around 50% of its total pendent dealers. The main markets are served by dedicated sales. Sales to other European markets account for around companies in Norway, Sweden, Denmark, Germany, the 40% of total sales, with Germany, the Netherlands and UK, the Netherlands, France, Switzerland, Singapore, the UK constituting the largest markets. Office chairs and China and Australia. The group has established a common seating solutions account for about 40% of the total office export unit, Global Partner Organisation (GPO), for sales to furniture market in Western Europe, which is estimated other markets. GPO’s remit includes marketing and selling to be worth around NOK 24 billion per annum. Today, the the company’s brands to customers in the USA, Europe and group is the market leader in office chairs in Scandinavia, the rest of the world via partners and importers. The com- with a market share of 34%. Over the course of the last pany also enjoys close cooperation with interior designers, few years, the group has also bolstered its position as the ergonomists and purchasers, who, together with our own largest manufacturer of office chairs in Western Europe, organisation, provide good dialogue with and service for in terms of value. Scandinavian Business Seating is well our end users. positioned in terms of price, function, design, environment and geographical cover to win new market shares within all RESEARCH AND DEVELOPMENT its market segments. Innovation and design are prerequisites for international 8 Annual Report 2016 Scandinavian Business Seating The organisation success in our industry. Scandinavian Business Seating fulfilling the following mission: To offer the best seating has a strong research and development culture, backed up solutions for working people. Our vision, which is also our by tradition and experience, within the spheres of design, guiding light, is: To make the world a better place to sit. ergonomics, aesthetics/visual design and the environment. Research and development work is deemed a top priority, CORPORATE SUSTAINABILITY both at brand and group level, with R&D facilities in An overarching concept at Scandinavian Business Seating Norway, in Sweden and in the Netherlands.
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