Annual Report 2012/13 - Clas Ohlson

Price risk
The price risk is regarded as low as the company buys from more than 600
suppliers. In accordance with its purchasing policy, the company also avoids
entering into long-term supply contracts, to retain flexibility with regard to
suppliers and products.
Credit risk
Accounts receivable are characterised by a very low risk, as each sub-item
is small and the Group’s credit policy is restrictive. Provisions for doubtful
receivables are made following individual examination, but this has not been
necessary in the past five financial years for either the Group or the Parent
Company.
Cash and cash equivalents are invested in various bank accounts, mainly
at Nordea and its international branches in Norway, Finland and the UK. The
credit risk is considered insignificant.
Capital risk
The capital risk is regarded as low because the Group had a low portion of
liabilities at the end of the financial year and an equity/assets ratio of 59.1
per cent.
The goal of the Group’s capital structure is to be able to continue to report
a favourable return to shareholders, value for other stakeholders and to maintain
an optimal capital structure to ensure that capital costs are minimised.
The capital structure can be adapted to meet the requirements that arise
by altering the dividend to shareholders, buying back shares, issuing new
shares or disposing of assets in a bid to reduce liabilities. The assessment of
capital requirements is conducted using relevant key data such as the relationship
between net indebtedness and equity.
Note 3
Other operating income
Other operating income and
operating expenses
Group
Parent Company
2012/13 2011/12 2012/13 2011/12
Rental income 24.0 22.7 24.0 22.7
Gain/loss on sale or disposal
of property, plant and
equipment 0.5 0.5 0.1 0.4
Total 24.5 23.2 24.1 23.1
Other operating expenses
Leasing expenses –23.9 –22.4 –23.9 –22.4
Gain/loss on sale or disposal
of property, plant and
equipment –2.1 –1.5 –1.0 –1.5
Total –26.0 –23.9 –24.9 –23.9
Note 4
Depreciation
Group 2012/13 2011/12
Depreciation broken down by type of asset
Intangible assets* 13.3 1.6
Land and building 29.1 29.1
Equipment, tools, fixtures and fittings 155.3 148.4
Total 197.7 179.1
Depreciation broken down by function
Cost of goods sold 67.9 65.0
Selling expenses 123.8 108.3
Administrative expenses 6.0 5.8
Total 197.7 179.1
Parent Company 2012/13 2011/12
Depreciation broken down by type of asset
Intangible assets* 13.3 1.6
Land and building 28.9 28.9
Equipment, tools, fixtures and fittings 87.3 82.2
Total 129.5 112.7
Depreciation broken down by function
Cost of goods sold 68.0 65.0
Selling expenses 55.5 41.9
Administrative expenses 6.0 5.8
Total 129.5 112.7
* Depreciation on intangible assets belongs to selling expenses
Note 5
Expenses distributed by
type of cost
The item “Cost of goods sold” includes all costs incurred in conveying the
goods to the Distribution Centre and subsequently to the store shelf, such
as product costs, freight to the Distribution Centre and stores, customs duty,
environmental charges and handling costs at the Distribution Centre and
stores. The item “Selling expenses” includes primarily stores costs as well
as payroll costs, rents, marketing and costs for the sales-related support
function at the head office. The item “Administrative expenses” includes
costs for other support functions at the head office.
Payroll expenses including social security expenses during the financial
year totalled SEK 1,397.9 M (1,300.0) in the Group and SEK 845.8 M (762.9)
in the Parent Company. Depreciation during the financial year totalled SEK
197.7 M (179.1) in the Group and SEK 129.5 M (112.7) in the Parent Company.
Note 6
Salaries and other
remuneration
Expenses for employee
benefits
2012/13 2011/12
Parent Company 623.3 557.2
Subsidiaries 475.4 464.5
Group total 1,098.7 1,021.7
Social security expenses
Social
security
expenses
2012/13 2011/12
of which
pension
expenses
Social
security
expenses
of which
pension
expenses
Parent Company 222.5 39.2 205.7 37.7
Subsidiaries 76.7 20.0 72.6 18.5
Group total 299.2 59.2 278.3 56.2
Of the Parent Company’s pension expenses, SEK 2.4 M (2.2) pertained to the
group consisting of the Board, CEO and Deputy CEO. Of the subsidiaries’
pension expenses, SEK 0.8 M (0.8) pertained to managing directors of
subsidiaries. In the Group, expenses for defined-contribution pensions
amounted to SEK 51.1 M (48.2) and defined-benefit pensions to SEK 0.2 M
(0.3).
The Parent Company only has defined-contribution pensions (including
Alecta) for which the year’s expenses amounted to SEK 31.3 M (30.0). In
the Parent Company, the year’s expenses for special employer’s contribution
on pension premiums totalled SEK 7.9 M (7.7). For more information on the
defined-benefit pension plans in the Group, refer to Note 19.
Accounts 67