Beijer Electronics Group — Annual Report 2016

May 18, 2017

2016 ANNUAL REPORT

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Contents

Operations

This is Beijer Electronics Group 5
Key events and key figures 6
CEO's statement 8
About our operations
What we do 10
Solutions in our everyday lives 12
Beijer Electronics business entity 14
Westermo business entity 20
Korenix business entity 26
In contact with our markets 30
Financial information
Financial information 32
Directors' Report 34
Consolidated Income Statement 38
Statement of Comprehensive Income 38
Consolidated Balance Sheet 39
Consolidated Statement of Changes in Equity 40
Consolidated Cash Flow Statement 41
Parent Company Income Statement 42
Parent Company Balance Sheet 42
Parent Company Statement of Changes in Equity 44
Parent Company Cash Flow Statement 45
Notes 46
Corporate Governance Report 2016 76
Board of Directors' certification 80
Board of Directors and Auditors 81
Audit Report 82
Senior Executives 86

Investor and Shareholder information

Five-year summary 88
The Beijer Electronics share 90
Definitions 92
Invitation to the Annual General Meeting 94

…as easily as connecting to your bank from your mobile and doing your banking securely, you can control and monitor your operations with interactive cloud services and control equipment. Wherever you are, and in every context, digitalization gives you complete control and frees up time. Beijer Electronics' new operator terminals can automatically control feed delivery in a fish farm while simultaneously monitoring its pumps. With the cloud, this process can then be controlled and monitored from a mobile phone.

This is Beijer Electronics Group

Beijer Electronics Group is an innovative, high-tech company active in industrial automation and data communication. The Group's software and hardware products, control, monitor, check and communicate digital information flows across an array of applications. Beijer Electronics Group is a multinational corporation with its roots in Swedish engineering know-how. Delivering innovative solutions to help improve efficiency and cut costs for our customers.

A local presence…

Beijer Electronics Group's headquarters has been in Malmö, Southern Sweden, since its start-up in 1981. Over the years, the company has expanded internationally, and now has a presence in Europe, Asia, the Americas and Australia through proprietary offices and carefully selected distributors. Its sales and development resources are located in all regions. Maintaining a long-term local presence is an important component of the Group's growth strategy.

…with the right competence

Beijer Electronics Group's people possess a high level of competence in software and hardware development. Closeness to the market brings a good awareness of customer needs and what the market is demanding. The combination of its people's competence and experience is one of the Group's most valuable assets.

New segment reporting effective 2017

Beijer Electronics Group has decided to implement new segment reporting effective 2017. The IAS business area is changing name, and will be reported under the Beijer Electronics business entity. The IDC business area is being divided and reported under the Westermo and Korenix business entities. This new division is apparent in the first section of the Annual Report for 2016. In the formal Annual Accounts, the latter part of this document, the division between IAS and IDC is retained for 2016.

Significant events in 2016

The Board of Directors set new financial targets for Beijer Electronics Group at the beginning of 2016. These targets are that within a 2-3 year timeframe, the Group will achieve minimum organic growth of 7% per year, and achieve a minimum EBIT margin of 10%, measured as an average over a business cycle.

Beijer Electronics' partnership with Mitsubishi Electric terminated at year-end 2015. The operation in Finland, as well as the Estonian, Latvian and Lithuanian subsidiaries, were dirested at the beginning of the year. In total, this meant the loss of some 170 MSEK of sales in 2016. In the third quarter, the holding in Altus Sistemas of Brazil was subject to a 71.6 MSEK impairment loss. This impairment had no impact on liquidity.

Beijer Electronics

Beijer Electronics initiated and executed a restructuring and savings program. Simultaneously, this business entity prioritized product development for future growth. An all-new product range, the X2 series, an upgrade of iX software, and tools for the Internet of Things, were launched in the year.

Westermo

Westermo finished the year strongly with record order intake in a single quarter. The business entity secured several breakthroughs on new business accounts in rail infrastructure with substantial future potential.

Korenix

The Korenix business entity successfully secured a breakthrough order from Tai Power. A new manager for the Shanghai start-up took up his position in the year, and a new President of Korenix started on 1 January 2017.

Key figures 2016

EBITDA (MSEK)

Operating cash flow (MSEK)

Group sales and profitability, 2012–2016 Key figures

The bars and left-hand scale show annual sales. The curve and right-hand scale show EBITDA.

	2016	2015	2014
Sales, MSEK	1,121.5	1,374.6	1,401.6
EBITDA margin, %	2.1	8.4	12.7
Operating profit/loss, MSEK	-39.4a	52.2	113.6
EBIT margin, %	-3.5	3.8	8.1
Profit/loss after tax, MSEK	-126.1	23.8	62.7
Earnings per share, SEK	-6.61	1.26	3.24
Dividend per share, SEK	0.00b	1.25	1.25
Equity ratio, %	29.4	36.3	33.6

a Including 50.0 MEK of restructuring expenses. b The Board of Directors' proposed dividend.

Product development expenditure

Investment in future growth by focusing on technology and product development continued in 2016, when total product development expenditure was 137 MSEK.

Key figures, employees

	2016	2015	2014
Average number of employees	714	752	760
Sales per employee, MSEK	1.6	1.8	1.8
EBITDA per employee, SEK 000	32.2	153.6	235.0
Operating profit/loss per employee, SEK 000	-55.1	69.4	149.5
Employees in R&D	143	128	115
Division men/women, %	67/33	66/34	67/33

CEO'S STATEMENT

Ideally positioned for new Internet and cloud solutions

Beijer Electronics Group has emerged from last year stronger, and created a new platform for sustainable high and profitable growth. We achieved what we said we would; the Group is in the process of realigning in a more customer-oriented direction, simultaneous with significantly downscaling our cost base. Production in our Beijer Electronics business entity was concentrated on Taiwan, and investments in production enhanced quality and delivery accuracy. Product development was intensive, and we launched new product ranges.

But we're still not satisfied. Our sales and profit for the full year 2016 remain unsatisfactory. Our ambitious investment plans for the Westermo and Korenix business entities have taken longer to implement, while the market has been fairly sluggish. The realignment of the Beijer Electronics business entity was essentially complete as planned in the year, although some market segments like oil and gas remained slow.

Progress heading in the right direction

Despite all this, I can say that progress is in the right direction. Operations gradually improved in the year. An operating loss in the first quarter went positive and continued in a progressively more positive direction for the rest of the year. Additionally, the year finished strongly, with a 20% increase in order intake compared to the average for the preceding quarters.

We have nurtured our product development process, maintaining a high level of development resources. Beijer Electronics launched a new generation of operator panels, the X2 series, upgraded iX software and introduced tools for connecting to the Internet. Progress in the Internet of Things is now rapid, with connection to the cloud through a range of services. Beijer Electronics is ideally positioned to be able to deliver these new solutions.

Westermo launched new versions of the WeOS operating system and several switches with very high transmission speeds, as

well as new wireless solutions. Korenix developed a competitive data communication product range, focusing on security and monitoring.

Meanwhile, we have radically regenerated our range, so that most of the Group's future sales will be generated from new products. Our sales organization has altered, with more employees with differing competences becoming involved in the sales process. We are gradually shifting our focus from products to solutions and customer value.

Implementing major change has put our organization under strain. Without Beijer Electronics Group's highly competent and professional employees, we wouldn't have been able to achieve our realignment as quickly, or in relative terms, so smoothly. In short, our people have made an amazing effort.

Smart Automation

In tandem with its realignment, Beijer Electronics has declared a new vision for 2021. Fundamentally, this is about the Fourth Industrial Revolution, or Industry 4.0. Digitalization is transforming market standards. The trend is towards machinery and systems linking up and connecting to the Internet.

New concepts like smart automation are emerging. Solutions feature the control, connection and presentation of data for mission-critical applications. Software will play a progressively greater role in various solutions helping enable customers to optimize their processes. Customer benefit will come first, and we are endeavoring to secure closer partnerships with our customers.

In industrial data communication, Westermo and Korenix are completing the strategic initiatives and investment programs that have been decided. We are retaining our goals for each business entity, even if it will take longer to achieve them.

We have now staked out our path for the coming years and secured room to maneuver for our ongoing development initiatives.

Prospects of a better 2017

Westermo began the new year with a record order book and the number of ongoing projects increased in the year. With its broader and stronger product range, Westermo has identified new and attractive segments. Renewable energy like solar and wind power create entirely new demands for controlling the distribution of electrical power. In 2016, Westermo also made a breakthrough in rail infrastructure, which has huge future market potential.

Korenix launched a broad-based program of new hardware products, and software development commenced in the year. We also overhauled our sales organization to fit this new strategy more closely. This new organization was implemented at the beginning of the new year, and marketing and sales resources will be reinforced in 2017.

The consistent theme of Beijer Electronics Group can be summarized as Control, Connect and Present digital information flows in various types of automation and communication solutions. The Group's three business entities deliver sophisticated software and hardware used in a raft of applications, which now also represent an integrated and complete offering.

We have now staked out our path for the coming years and secured room to maneuver for our ongoing development initiatives. Building on the actions we took in 2016, we think that Beijer Electronics Group will be able to achieve higher sales and stronger underlying operating profit in 2017. Meanwhile, we are targeting growth of 7% and an EBIT margin of 10% during the course of 2018.

Per Samuelsson President and CEO

What we do

Beijer Electronics Group's core product offering consists of software and hardware for intelligent automation and data communication solutions. The digitalization process called the Fourth Industrial Revolution, or Industry 4.0, is transforming market standards, and the trend is towards connected machinery and systems with a higher software content. These solutions feature data control, connect and present for mission-critical applications. Beijer Electronics Group addresses an array of market segments with varying needs, which apply differing standards on solutions. Marine & offshore is an exposed and harsh environment, where the need for robust and sustainable solutions is a critical component of the Group's offering.

Smart Automation

Proprietary HMI products (operator panels), iX software and WARP Engineering Studio are the core of the Beijer Electronics business entity. They are supplemented by control and drive system products. This means that the business entity can market a complete automation offering including communication between devices via the cloud. Beijer Electronics Group has two clear competitive advantages – state-of-the-art, market-leading software – iX – and a broad product portfolio including its new range of operator panels, the X2 series.

Communication

The Industrial Data Communication segment consists of two business entities, Westermo and Korenix, which have complementary strategies.

Westermo develops, manufactures and sells data communication products and solutions for demanding sectors and other segments like rail, water and energy supply. The business entity has a world-leading offering in robust network solutions for mission-critical systems. These solutions consist of the proprietary operating system WeOS and hardware platforms. Korenix is a leader in wireless data communication solutions. Its primary focus is on security and surveillance applications.

Solutions in our everyday lives

People have learned to use technology to deliver the goods and services we need in our everyday lives. Take a look around you–wherever there are processes that need drive and control, or information to communicate and visualize, there's a need for smart hardware and software. This interface between people and technology is where Beijer Electronics Group is the bridge-builder. Here are some of the places Beijer Electronics Group has an impact on your everyday life.

Marine and offshore

– the environment and safety first

The extreme conditions at sea, environmental regulations and the long distance to port place high demands on equipment reliability and performance to ensure safety and reduce environmental impact.

Buildings

– lower energy consumption

Higher energy prices and a growing awareness of environmental issues are driving efforts to minimize energy consumption in homes, office buildings and factories. Integrating production processes with smart building automation lowers energy consumption.

Energy

– efficient solutions and smarter distribution

Increased efficiency in the extraction of fossil fuels, development of efficient, renewable energy production, and smarter energy distribution systems are some of the massive technological challenges that must be solved to meet the world's ever-increasing demand for energy.

Water

– securing accessibility and the environment

A growing population expects and needs clean, accessible water. Increasing amounts of waste water must be treated efficiently to protect the environment and to prevent diseases. The harsh environment of water treatment plants creates high demands for the equipment used.

Transportation

– smarter and safer connections

Today's complex transportation systems involve far more than just moving people and goods from A to B. Positioning services, cargo tracking, communication between vehicles, information systems and safety solutions are all vital parts of modern transportation. Infrastructure

Manufacturing

– increased productivity

Global price pressure, shorter technology life cycles, and consumers with ever growing demands for affordable products are putting manufacturers and machine builders under huge pressure to make production processes more efficient.

– safer and faster transportation

Growing needs for transportation of people and freight are putting great pressure on roads, railways and other kinds of infrastructure. New systems for traffic management and tunnel ventilation, for example, increase traffic flow and safety.

Beijer Electronics Business entity

In 2016, Beijer Electronics featured the major realignment of its business that began at the beginning of the year. The partnership agreement with Mitsubishi Electric terminated at year-end 2015. The Finnish and Baltic operations were also divested at the beginning of the year. In total, this meant a sales loss of some 170 MSEK.

A program of measures and restructuring was initiated with the goal of cutting costs by 50 MSEK annualized, of which 30 MSEK would take effect in 2016. Downscaling went as planned, and had the intended effect. The organization was realigned in a more customer-oriented direction. In-house manufacture was concentrated on Taiwan, while the manufacture of certain products in the US was outsourced. Meanwhile, the business entity invested in Taiwan to rationalize manufacture and assure quality and delivery capacity. The employee headcount of the business area reduced by 15%.

Beijer Electronics has prioritized maintaining development capacity for future growth. Development expenditure was unchanged. An all-new product range, the X2 series, embedding software and hardware for all panels, was launched in the fall. The new panels were well received on the market. There will be more launches in 2017. The business entity's new strategy in the Internet of things (IoT) called "The Fast Track to the Cloud" was also launched in the year. The solution builds on previously launched software WARP Engineering Studio, which brings users access to process data and an easy connection to the cloud.

Operations progressively improved through the year, which concluded positively. Order intake was 609.1 MSEK (798.4). Sales were 623.3 MSEK (818.8). EBITDA was -14.4 MSEK (38.3). Depreciation and amortization was 19.7 MSEK (21.3). Operating profit/loss was -34.1 MSEK (17.0). Profit was charged with non-recurring costs of 47.4 MSEK (4.1). Excluding non-recurring costs, profit was 13.3 MSEK (21.2).

Sales 2016

	2016	2015
Total sales	623,255	818,790
EBITDA	-14,406	38,310
Operating profit/loss	-34,109	17,050
EBIT margin, %	-5.5	2.1
Share of Group sales, external, %	55.6	59.6
Operating profit excl. restructuring	13,286	21,175

56%

Share of Group sales

348 employees

Offering and market

Smart Automation

Automation solutions consist of control and drive systems, as well as operator panels (HMI). Control systems and HMIs are like electronic brains that digitally control, monitor and check machinery and processes. Beijer Electronics has a broad selection of proprietary operator panels and Internet tools consisting of software and hardware, supplemented by third-party control and drive systems. Various research reports estimate the global market value at 20-25 billion SEK. Estimated yearly growth is some 3-5%. The primary driver is rapidly increasing content of software solutions tracking the evolution of the Internet of Things and greater demand for smart automation. Beijer Electronics' estimated market share is some 3%.

Sales channels

Beijer Electronics reaches end-users of automation solutions through a combination of channels. System integrators and OEMs (original equipment manufacturers) use solutions either themselves, or embed them in their own. Brand label customers sell Beijer Electronics' products and solutions under their own branding. A network of distributors on selected markets complements Beijer Electronics' own sales resources and direct sales. Beijer Electronics provides servicing and support on local markets.

Market segments

Automation solutions are utilized across a raft of segments and applications. The largest segment is manufacturing, which largely utilizes off-the-shelf products. Other segments like oil & gas, as well as marine & offshore often operate in exposed, harsh environments that create very specific and challenging demands for solutions to be robust and sustainable. Beijer Electronics is at the leading edge in terms of robust operator terminals and solutions. In segments like building automation, water & waste water, special, customer-specific products and application solutions are critical.

Manufacturing Oil & gas Building automation Marine & offshore Water & waste water

Customers

Beijer Electronics sells solutions globally to a total of some 4,500 customers of varying sizes. The ten largest customers generated 22% of sales in 2016. The Nordics represented 32% of sales, the rest of Europe 23%, the Americas 23%, Asia 21% and the rest of the world, 1%.

Healthy eating technology

The Dutch company QBTec, selected a Beijer Electronics' operator panel with iX Software for its product HiFri®. QBTec manufactures professional fryers and cooking equipment for the catering industry. Their HiFri® uses a new fat-free technology for frying food, replacing oil and fat with warm air and heated steam. iX's capability of generating a code for each recipe possibility (over 60,000 recipe choices), was decisive to Beijer Electronics' panel being selected. Application development time was reduced immensely and now only one recipe screen with four buttons is required on the panel and all other processes are executed automatically. QBTec's deliveries include 2-3 HiFri units for 400 IKEA restaurants.

Products and technology

Manufacture

The manufacture of Beijer Electronics operator panels has been co-located at the facility at Taipei, Taiwan. Production is mainly the assembly of components purchased from external vendors. Manufacture has ISO 9001 and ISO 14001 certification.

Software focus

Beijer Electronics is development intensive and invests significant resources in software and hardware product development. In 2016, the focus migrated progressively towards developing software solutions to address the challenges presented by Industry 4.0. The technology platform has been developed to create more flexible functionality and expand the array of applications and usage segments. Software has been modularized still further, to integrate tailored functions into a single application more effectively. WARP Engineering Studio – software that integrates operator terminals with control and drive systems so that they can communicate with each other to optimize processes – was also launched in the year.

Operator communication

Beijer Electronics launched an all-new generation of operator panels in fall 2016, called the X2 series. A family of versions with differing capacity and performance are available. There is a selection of basic versions, and tailored solutions like X2 pro, X2 marine and X2 motion. X2 extreme is scheduled for launch in 2017. These panels use the upgraded version of iX software. The iX solution for the new operator panels can also be complemented by integrated SoftControl and SoftMotion. These new automation solutions expand the business entity's market, and extend the array of application segments.

Solutions and concepts

Beijer Electronics delivers control and monitoring systems specifically developed to manage and automate the needs of buildings. Thanks to all the functionality for optimizing climate control, timing, programming, safety, alarm management, reporting and maintenance being integrated into a single system, property managers gain complete control over central building operations.

Strategy and future

Digitalization, automation and urbanization are driving the market and creating new business opportunities. Beijer Electronics is guided by its vision of being a multinational, multi-industrial innovator of flexible solutions to control, connect and present data for mission-critical applications.

With open source software, hardware and solutions for the Internet of Things, the company can support customers in optimizing their processes, and creating reliable and secure communication, supplemented by world-leading user-friendliness. By making complex things simple, Beijer Electronics' ambition is to collaborate closely and jointly with its customers to capture the opportunities of tomorrow.

Digitalization and connectivity

Digitalization is transforming the requirements of automation solutions. Within manufacturing, this is called the Fourth Industrial Revolution, or Industry 4.0. The trend is heading rapidly towards machinery and systems linking up and connecting to the Internet via the cloud (the Internet of Things), and evolving towards a new concept, smart automation. Smart automation requires a greater element of software, as well as new programs and services.

Smart automation, which controls, connects and presents data in a variety of applications creates huge customer benefit in the form of alert systems, planned maintenance, as well as disruption in stoppage prevention. Production data can be integrated with sales data and information from ERP systems. Making data available creates support for data analysis that can be used to further refine and optimize customers' processes.

In 2016, Beijer Electronics embarked on its strategic orientation on smart automation. Its focus is gradually migrating towards more development of software solutions within the control, connection and presentation of data. By partnering closely with its customers and improving knowledge of their needs, Beijer Electronics can simplify solutions, make them more user friendly and reduce time to market. The primary challenges when connecting to the cloud are creating secure systems that can't be hacked, that are also robust and reliable.

Development and sales processes are focusing more on customer value than product sales. The new strategic plan will be implemented over a 3-4 year term.

Westermo Business entity

Westermo finished the year strongly with its best order intake in a single quarter to date, and had a record order book at year-end. Otherwise, the market featured restraint and deferred investments, especially on large-scale projects. Overall, this meant that full-year order intake was comparable to the previous year, which is lower than expected.

Fewer invoiced project orders meant that sales were down on 2015. Ongoing core business progressed as expected. In the second quarter, Westermo initiated a program to adapt costs to lower business volumes and improve profitability. This program was successful, and paid off as early as the third quarter. Reduced costs and a stronger gross margin helped ensure good profitability in the second half-year, and mitigate the downturn in full-year operating profit.

Westermo advanced its market positioning and strengthened the company, consistent with its development plan in the year. Westermo achieved deeper partnerships with strategic customers in the train segment, resulting in major orders in the fourth quarter. Westermo also made several breakthroughs with new business customers in rail infrastructure and traffic monitoring. A state-of-the-art surface mounting line was installed at the Stora Sundby facility, and capacity was expanded. New sales companies and offices were opened in Australia and Finland. Westermo maintained a high level of product development, executing several new launches in tandem with developing new technology for future product generations.

Westermo's order intake was 435.6 MSEK (445.1). Sales were 404.6 MSEK (461.0). Operating profit amounted to 30.6 MSEK (43.6), corresponding to an EBIT margin of 7.6% (9.5).

Sales 2016

405 MSEK

	2016	2015
Total sales	404,619	460,982
EBITDA	53,639	66,965
Operating profit/loss	30,563	43,584
EBIT margin, %	7.6	9.5
Share of Group sales, external, %	35.8	33.3
Operating profit excl. restructuring	32,449	43,584

Share of Group sales

employees 202

Offering and market

Network solutions for industrial data communication

Westermo delivers industrial data communication products, targeting the market for infrastructure and various manufacturing sectors. These networks are critical to customers' operating activities. The solutions are often installed in exposed, harsh environments, with electrical disruptions, dust, vibration and wide temperature fluctuations. This implies very stringent standards for environmental endurance, safety and reliability. Westermo's network solutions are robust and specifically developed to satisfy customer needs for missioncritical systems. Various research reports estimate the global market value of industrial network products at 13-17 SEK billion. Investment cycles vary, with lower growth in some years including 2016, although in the long term, the market has achieved yearly growth of over 10%.

Sales channels

Westermo markets and sells network products through a variety of channels. Its in-house sales resources consist of offices with sales teams in 13 countries. The sales offices service end-customers directly, and system integrators. Sales are also through OEM customers, which embed these products in their own solutions. Westermo's sales resources are supplemented by a network of distributors on selected markets. Westermo's in-house sales resources generated most, or over 70%, of sales in 2016.

Market segments

The offering addresses the market for infrastructure, such as transportation systems, energy systems and water supply, spanning a range of manufacturing sectors such as marine, mining, and processing industries. Westermo's positioning includes being a global leader in the rail segment. Westermo's share of the global market for industrial network products is an estimated 4%.

Customers

Westermo currently has some 5,000 regular customers of varying size. Many of them are major multinationals, the largest being Bombardier, Toshiba and ABB. The 10 largest customers represented 28% of sales in 2016. The Nordics generated 25% of sales and the rest of Europe, 51%. The US provided 11%, Asia 10% and the rest of the world, 3%.

Efficient control of the power grid

UK utility Electricity North West is applying Westermo products to upgrade its communication network. This upgrade will improve and assure power supply to some 2.4 million buildings. Westermo has delivered a solution enabling the reuse of cabling from the legacy system instead of needing to replace 11,000 km of cable infrastructure. The potential to reuse cables to such an extent was critical to the upgrade being economically viable. A total of 750 Wolverine Ethernet extenders from Westermo were used to connect 500 transformer stations and a centralize control and monitoring system.

Products and technology

Manufacture

Westermo's products are manufactured at the company's facility in Stora Sundby, Sweden. This facility operates in accordance with the IPC A-610 standard and holds ISO 9001 certification.

Network solutions

A typical customer in the process industry, for example, would operate a large-scale facility with a variety of equipment and systems that need to be controlled and monitored. A network interconnects all hubs and ensures that data always arrives at the correct node. Multiple control and monitoring processes are inherently mission critical. Accordingly, robustness and redundancy are vital for the customer. These networks are created from Westermo products, whose specific values for customers are embedded into sophisticated hardware and software.

Leading-edge software and hardware

Westermo has a broad range of products and solutions. Its product portfolio includes various types of Ethernet switch and router for remote connection via 3G/4G. These robust hardware platforms utilize Westermo's proprietary operating system WeOS, offering the customer access to extensive functionality, simply and efficiently. WeConfig software is a graphical interface offering the customer major savings in the configuration and commissioning of complex industrial networks. The product ranges are marketed as Westermo Edge Networks and Westermo IP Train. Product development is through efficient and close collaboration with Westermo's manufacturing resources.

Solutions and concepts

A technology paradigm shift to IP-based network solutions for trains is happening now. Westermo provides sophisticated communication systems for a range of systems, firstly those that control and monitor the operation of trains, and secondly, passenger information and infotainment systems. These solutions also include communication for video monitoring and wireless communication for connecting to the Internet and various monitoring and control centers.

Strategy and future

Westermo's operations progressed in the direction set in the three-year investment plan formulated in fall 2014. This plan involves significant investments in product development, as well as marketing and sales.

Multiple new products

New products in Train networks and Edge networks, as well as continued enhancement of the WeOS and WeConfig operating systems were priority segments.

New versions of WeOS, with new functionality to enhance IT security – crucial for protecting against breaches – were launched in 2016. A new version of WeConfig, which enables networks to go live quickly, was also introduced.

Other new products included a switch with gigabit capacity – very high-speed transmission – and a series of switches and wireless products for the train segment. Total development expenditure amounted to 66 MSEK (63), or 16% (14) of sales in 2016.

New segments with massive potential

The market is in positive long-term growth. It is highly project based, which normally means long lead-times and business cycles. With a broader-based and stronger product range, Westermo has identified new segments to address. Westermo made a breakthrough on the rail side in 2016 in rail and signal systems. The oil & gas sector, currently at a low level, harbors substantial potential.

Renewable energy like wind and solar power is setting completely new standards for controlling power distribution. There is also a growing need for monitoring and alarm system solutions to protect plants and installations in several other segments that Westermo addresses.

Korenix Business entity

In 2016, Korenix maintained its focus on the investment program created in fall 2014. This investment involves the development and marketing of wireless communication technology, focusing on the surveillance and security sectors.

Korenix introduced several new wireless network products for exterior use, and products with new functionality, including enabling communication with operator panels and control systems. There is substantial potential for collaboration between the Group's business entities. Beijer Electronics and Westermo already use elements of Korenix products in their solutions for customers.

Organizational resources were reinforced with enhanced competence in key technologies. Investments in marketing and sales were deferred because of the need to overhaul organizational resources for a closer fit with Korenix's new

strategy. The implementation of Beijer Electronics Group's global ERP system was completed in the year.

A breakthrough in order to Tai Power was successfully installed.

Korenix's order intake and sales numbers were below plan, explained by factors including specific problems related to external software at the beginning of the year, which required additional security modifications on the US market, and the change of a component vendor in the fall. These problems were rectified, and the year finished briskly with order intake up by over 20% in the final quarter.

To counter somewhat lower sales, Korenix executed some cost adaptations. However, product development was maintained at a high and unchanged level.

Full-year order intake increased by 10% to 97.7 MSEK (89.1). sales were 109.4 MSEK (117.8). Operating profit was 1.7 MSEK (6.1), most generated in the fourth quarter.

Offering and market

Communication solutions

Korenix offers the market sophisticated data communication solutions, wireless and over Ethernet. Its offering includes hardware and software. The focus is on wireless communication technology for surveillance and security. These markets are in high growth. Korenix addresses the smart cities segment, which demands greater efficiency in services including fixed or wireless communication in the transportation sector, as well as information systems for buses, trains, subways and roads. Other segments include the power and manufacturing industries. Wireless communication networks are also becoming more significant as a back-up to fixed communication networks to satisfy the need for constant availability.

Market segments

The largest segments are surveillance, which represents 33% of sales. Transportation and infrastructure represent 15%, and the power sector represents 11%. In the year, the power sector performed especially well, with deliveries including a major order to Tai Power in Taiwan.

Sales and customers

Korenix's sales are global; Europe represents 37% of total, Asia 50%, the US 8% and other markets 5%. There are OEM customers on several markets, representing 21% of sales, the majority in the US. The 10 largest customers represented 41% of sales in 2016.

Products and technology

Manufacture

Korenix's products are manufactured at its plant in Taipei, Taiwan.

Korenix has a broad product range of industrial data communication software and hardware. The products in a solution are Ethernet switches, wireless switches, 3G and 4G routers, and combinations of switches and routers. Antennas are essential components for reach and security. Korenix Network Manager software is the core of solutions, which configures complete networks. Korenix has a significant number of patents.

Products are marketed under the brands JetWave, JetNet and JetPort with differing capacities, functionality and performance.

Solutions and concepts

Korenix delivers communication systems for surveillance and safety on buses and coaches. Public transport providers have a growing need to install surveillance systems to promote a safer environment for passengers and staff, and help reduce criminality and damage. The system also includes passenger information and communicates expected arrival times with stops. The wireless network is a unique solution that cuts costs for the user by installing separate Ethernet switches and power converters on board buses and coaches.

Strategy and future

Korenix is retaining the new strategy formulated in fall 2014, even if it is taking longer than expected to implement. Korenix has developed a strong and competitive range of wireless communication products focusing on surveillance and security solutions.

Most of the hardware products have been launched. Software development of functionality in network security also commenced in the year. Investments in marketing and sales were deferred, because there was a need to overhaul organizational resources for a better fit with Korenix's new strategy.

A new marketing and sales organization was created in early-2017. Through the coming years, Korenix will sharpen its focus on marketing and sales, by enhancing its organizational resources in Europe and the US, as well as Asia. The sales organization has been expanded, which involves additional resources in China.

The transportation and renewable energy market segments have gained higher priority. The company's new products were well received at various surveillance and security trade events around the world in 2016. A new market-oriented President of Korenix took over at year-end. Improving the procurement system from suppliers and optimizing manufacturing processes are other high-priority segments.

In contact with our markets

Since 1981, Beijer Electronics Group has grown from being a localized technology enterprise in Sweden into a multinational Group with operations on major markets worldwide. Our ambition is to be a flexible partner for our customers when they move into new markets – while we can also provide the local support they need.

Distributors

Beijer Electronics Group's sales resources are supplemented by a network of carefully selected distributors in some 60 countries. These distributors are competent technology companies that sell the Group's broad product range on each market. Over and above sales, distributors offer local servicing and support.

Sales offices

Beijer Electronics Group has its own sales and support business spanning 18 countries. Operations are supplemented by sector-focused

sales teams that operate across the whole international arena. Local support and closeness to customers are key cornerstones of the business model.

Production/development

Beijer Electronics Group has development centers in Malmö and Västerås, Sweden, and in Germany, Salt Lake City in the US,

and Taipei, Taiwan. The Group's manufacturing facilities are located in Stora Sundby, Sweden and Taipei, Taiwan.

Financial information

The Group consists of two business areas, IAS and IDC.

The foundation of the IAS business area is its proprietary HMI products. In the Nordics, Beijer Electronics also offers a range of complementary third-party industrial automation products.

The IDC business area consists of the two brands Westermo and Korenix, which deliver Ethernet-based switches and routers, as well as accessories for industrial customers with stringent quality standards.

The Group has introduced new segment reporting effective 2017. The IAS business area is changing name and reporting within the Beijer Electronics business entity. The IDC business area is being divided and reported under the Westermo and Korenix business entities. To facilitate comparisons from previous periods, the results of operations for each entity for the full years 2015 and 2016, and for the various quarters of 2016, are stated in the following table.

company A Beijer Group company A Beijer Group company

company A Beijer Group A Beijer Group company company

A Beijer Group company A Beijer Group Group A Beijer Group company A Beijer Group

Beijer Electronics	2015	2016-Q1	2016-Q2	2016-Q3	2016-Q4	2016
Sales, external	818,759	164,179	155,637	147,169	156,158	623,143
Sales, intra-group	31	33	76	1	2	112
Sales, total	818,790	164,212	155,713	147,170	156,160	623,255
EBITDA	38,310	-44,822	14,446	5,371	10,599	-14,406
Operating profit/loss	17,050	-49,927	10,011	401	5,406	-34,109
EBIT margin, %	2.1	-30.4	6.4	0.3	3.5	-5.5
Share of Group sales, external, %	59.6	58.5	54.9	54.3	54.5	55.6
Share of Group's operating profit, %	32.7	90.0	240.1	8.5	74.5	86.7
No. of employees	397	357	352	349	348	348

Westermo	2015	2016-Q1	2016-Q2	2016-Q3	2016-Q4	2016
Sales, external	458,213	96,493	103,299	97,664	104,508	401,964
Sales, intra-group	2,769	484	572	1,244	355	2,655
Sales, total	460,982	96,977	103,871	98,908	104,863	404,619
EBITDA	66,965	9,485	11,446	17,956	14,752	53,639
Operating profit/loss	43,584	3,400	5,782	12,069	9,312	30,563
EBIT margin, %	9.5	3.5	5.6	12.2	8.9	7.6
Share of Group sales, external, %	33.3	34.4	36.5	36.0	36.5	35.8
Share of Group's operating profit, %	83.5	-6.1	138.7	256.4	128.4	-77.7
No. of employees	191	204	205	205	202	202

Korenix	2015	2016-Q1	2016-Q2	2016-Q3	2016-Q4	2016
Sales, external	97,602	19,836	24,378	26,285	25,902	96,401
Sales, intra-group	20,194	3,395	3,496	2,830	3,277	12,998
Sales, total	117,796	23,231	27,874	29,115	29,179	109,399
EBITDA	13,349	1,191	2,723	2,317	4,134	10,365
Operating profit/loss	6,138	-850	681	148	1,721	1,700
EBIT margin, %	5.2	-3.7	2.4	0.5	5.9	1.6
Share of Group sales, external, %	7.1	7.1	8.6	9.7	9.0	8.6
Share of Group's operating profit, %	11.8	1.5	16.3	3.1	23.7	-4.3
No. of employees	136	141	142	141	140	140

Directors' Report

The Board of Directors and Chief Executive Officer of Beijer Electronics AB (publ), corporate identity number 556025-1851, hereby present the Annual Accounts and Consolidated Accounts for the financial year 2016. The information in brackets is for the previous year.

Group operations

Beijer Electronics develops, manufactures and sells products and solutions in industrial automation and data communication. The company's products and solutions feature high technology content, quality and user friendliness.

Beijer Electronics offers the market a broad selection of products and solutions that facilitate communication, control, monitoring and optimization of critical processes in many different types of operation. Proprietary technology and product development is an important precondition for Beijer Electronics' competitiveness on the market. The company has development centers in Sweden, Germany, Taiwan and the US.

The Group's vision is to be a leading global vendor of user-friendly automation and data communication solutions. Products and solutions from Beijer Electronics are sold through proprietary sales units in 18 countries, and via a network of independent distributors in another 60 countries. See also Note 14 for more information on Beijer Electronics' subsidiaries. Parent company Beijer Electronics AB is a holding company with central functions like strategic development, accounting and Finance, IT, human resources, quality and environment, as well as communications.

The Group was previously divided into two business areas: Industrial Automation Solutions (IAS) and Industrial Data Communications (IDC). The business areas have proprietary product development and manufacture, and global sales responsibility. The division into three business entities is effective 1 January 2017. Previously IAS formed the Beijer Electronics business unit. IDC is being divided into two business entities called Westermo and Korenix.

Operations in the year

Growth on the global industrial automation and data communication market is driven by investments in new products, digitalization, the ongoing rationalization of production controls and logistics, the rationalization of manufacturing processes and the need for more efficient energy consumption. Infrastructure like railways, highways, tunnels and energy distribution are growing market segments for automation applications and industrial data communications.

The trend on the industrial data communication market is high growth of around 10% annually. The smart automation market is returning long-term growth of around 3-5% annually. In 2016, the overall market featured continued caution, especially for large-scale investments. The global market exhibited the same fragmented pattern as in previous years. The US market progressed positively. Demand on European markets increased on some markets and reduced on others. Asia returned relatively good growth.

Order intake, sales and profit

The Group's order intake amounted to 1,142.5 MSEK (1,332.6) in 2015. Sales were 1,121.5 MSEK (1,374.6). The lower order intake and sales are mainly explained by the now-concluded collaboration with Mitsubishi Electric. Excluding Mitsubishi Electric products, sales were down by 8%. The decrease in underlying volumes is because of low demand in the US oil & gas sector, and lower project sales in IDC. In the Nordics and Baltics, total sales decreased by 35% to 307 MSEK (471), corresponding to 27% of Group sales. For the rest of Europe, sales increased by 13% to 369 MSEK (424), or 33% of total sales. In North and South America, sales decreased by 19% to 195 MSEK (240), corresponding to 17% of sales. In Asia, sales increased by 9% to 228 MSEK (209) or 20% of Group sales. Proprietary products represented approximately 92% of the Group's total sales. EBITDA was 23 MSEK (115.5). Depreciation and amortization was 62.4 MSEK (63.3). Operating profit/loss was -39.4 MSEK (52.2). Profit was charged with non-recurring costs of 50 MSEK (7.3). Excluding non-recurring costs, profit was 10.6 MSEK (59.5). The underlying decrease in earnings is due to lower sales volumes. The downturn was simultaneously offset by improved gross margins, and the effects of the restructuring program, which progressed as planned.

Profit/loss before tax was -124.2 MSEK (43.3). Net financial income/expense was -84.8 MSEK (-8.9). Net financial income/ expense includes an impairment loss of 71.6 MSEK on the holding in Altus Sistemas of Brazil in the third quarter of 2016. Profit/loss after estimated tax was -126.1 MSEK (23.8). Earnings per share after estimated tax were -6.61 SEK (1.26).

New financial targets for the Group

The Board of Directors set new financial targets for Beijer Electronics at the beginning of 2016. These targets are that within a 2-3 year timeframe, the Group will achieve minimum organic growth of 7% per year, and achieve a minimum EBIT margin of 10%, measured as an average over a business cycle.

Significant events

Beijer Electronics' Board of Directors convened an EGM on January 4, 2016. This EGM, which was held on January 28, 2016, approved the Board's proposal for the sale of the Group's subsidiaries in Estonia, Latvia and Lithuania, to certain senior managers of these companies. These companies' combined sales were 18 MSEK in 2015. The sale of the Finnish operation was completed on January 11, 2016.

At the end of January 2016, Beijer Electronics' Board of Directors approved a program of measures for the IAS business area. The cost of the program amounted to 50 MSEK, which was charged to profit in the first quarter of 2016. The program was expected to generate cost savings of 50 MSEK annualized, taking full effect in 2017, with 30 MSEK expected in 2016, commencing in the second quarter. The program of measures went as planned, with a total of some 50 staff affected, half of them in the Nordics. The program included an improved marketing organization and rationalizations in manufacturing. The aim was to create a more customer-oriented and flexible organization with a clear focus on proprietary products. The long-term ambition is also to increase the software share of total sales, focusing more on specific segments for robust terminals and concentrating resources on fewer markets, and reaching larger customers.

Beijer Electronics' Board of Directors decided to impair its holding in Altus Sistemas of Brazil by 71.6 MSEK. The impairment was charged to profit for the third quarter 2016. The impairment has no effect on liquidity. Beijer Electronics' participating interest amounts to 14.3% indirectly through a holding company, HCA Participacoes, which holds 65.16% of Altus Sistemas. The holding was acquired in 2013, and was recognized at 72.6 MSEK prior to the impairment of 71.6 MSEK. The Brazilian economy has deteriorated sharply since the acquisition. This, combined with Altus's exposure to the oil and gas sector, mean that the company's sales and earnings have been impacted very negatively, meaning that long-term value is uncertain, which caused the revaluation.

The Industrial Automation Solutions business area (IAS)

The IAS business area develops, manufactures and sells operator communication products and control and drive systems. The collaboration between Beijer Electronics and Mitsubishi Electric terminated at year-end 2015. This had a significant effect on IAS, with a substantial loss of sales in 2016, and represented most of the downturn in the business area's sales in the year. Demand in the oil & gas sector also remained poor. Otherwise, markets varied, with increased demand in China and some European countries, while reducing in other markets.

In early-2016, IAS initiated a program of measures and restructuring intended to reduce expenses by 50 MSEK annualized, taking full effect in 2017, with 30 MSEK scheduled to take effect in 2016. As part of this restructuring, the Finnish operation was divested at yearend 2015, and the Baltic operations were divested in the first quarter.

This restructuring was essentially completed in the year. The savings program went as planned. At year-end, the number of employees was 57 fewer than in the previous year, a 15% decrease. The organization was realigned in a more customer-oriented direction and manufacturing was rationalized. These actions had a progressive effect in the year and had a positive impact on profit. More positive effects are expected to become visible in 2017.

Meanwhile, IAS focused on product development, launching an all-new product range, the X2 series, including software and hardware for all panels, in the fall. These new panels were well received on the market, having a positive impact on sales in the fourth quarter. IAS's new strategy in the Internet of things (IoT) called "The Fast Track to the Cloud" was also launched in the year. The solution builds on previously launched software WARP Engineering Studio, which brings users access to process data and an easy connection to the cloud.

Order intake, sales and profit

Order intake was 609.1 MSEK (798.4) Sales were 623.3 MSEK (818.8). EBITDA was -14.4 MSEK (38.3). Depreciation and amortization was 19.7 MSEK (21.3). Operating profit/loss was -34.1 MSEK (17.1). Profit was charged with non-recurring costs of 47.4 MSEK (4.1). Excluding non-recurring costs, profit was 13.3 MSEK (21.2).

The Industrial Data Communication business area (IDC)

The IDC business area develops, manufactures and sells industrial data communication products on the global market, where infrastructure projects like rail systems, energy distribution, road transport and mining operations are key components.

The IDC market, especially major projects, was fairly slow in the year, which included deferred investments. With its focus on the train segment through Westermo, the element of project-based operations has increased. The lead-time from the specification phase to order varies widely, which means that order intake and sales can fluctuate sharply between quarters, as occurred in 2016. But the year concluded strongly, with the best order intake in a single quarter to date.

Overall, order intake for the full year was unchanged. More invoiced projects meant sales decreased in the year. To counter lower volumes, a program of cost adaptations to ongoing volumes was initiated in the second half-year. These modifications took effect promptly, and improved profitability in the second half-year. However, development investments remain at a high level, and several new product launches and upgrades were executed.

Order intake, sales and profit

Order intake amounted to 533.3 MSEK (534.2). Sales were 505.0 MSEK (567.6). EBITDA was 63.8 MSEK (80.3). Depreciation and amortization was 31.7 MSEK (30.6). Operating profit was 32.0 MSEK (49.7). Profit was charged with non-recurring costs of 1.9 MSEK (0). The EBIT margin was 6.3% (8.8).

Investments, cash flow and financial position

The Group's investments including capitalized development expenses and acquisitions were 74.8 MSEK (80.0). Cash flow from operating activities was 9.4 MSEK (84.7). Equity was 415.4 MSEK (521.0) at year-end. The equity ratio was 29.4% (36.3). Cash and cash equivalents were 107.2 MSEK (116.6). Net debt was 581.9 MSEK (492.8).

Profitability

Return on equity was -26.6% (4.6). Return on capital employed and net operating assets were -3.2% (4.8) and -5.8% (7.4) respectively.

Human resources

The average number of employees was 714 (752). There were 73 fewer employees at year-end than at the previous year-end, a decrease of some 10%.

Product development

The Group's product development is conducted in the IAS and IDC business areas. Development projects are regularly executed to extend the range of new products and solutions, and enhance the existing offering.

IAS develops operator panels and software used to give operators and maintenance staff fast and accurate data. Development includes the production of hardware, software and the associated documentation. There are development centers for HMI solutions in Malmö in Sweden, Nürtingen in Germany, Salt Lake City in the US and Taipei in Taiwan. Development expenditure in IAS was 52.3 MSEK (52.6). This corresponded to 8.4% (6.4) of sales.

Development expenses charged to profit were 34.7 MSEK (49.0).

Product development is a central component of IDC's operations and is conducted in close collaboration with production. Development consists of hardware and software. There are development units in Stora Sundby and Västerås, Sweden and Taipei, Taiwan. Development expenditure in IDC was 82.0 MSEK (79.4), corresponding to 16.2% (14.0) of sales. Development expenses charged to profit were 65.6 MSEK (66.1).

The Group's total expenditure for development was 136.6 MSEK (134.3), corresponding to 12.2% (9.8) of Group sales. Development expenses charged to group profit were 102.7 MSEK (121.4).

Currencies

Beijer Electronics' sales are conducted globally in different currencies. Euro-denominated sales were the equivalent of 368.1 MSEK, or 32.8% of total sales. Sales denominated in Swedish kronor were 145.4 MSEK, 314.8 MSEK denominated in US dollars, 41.1 MSEK in Norwegian kroner, 31.6 MSEK in Danish kroner, 68.2 MSEK in UK sterling and 152.3 MSEK in other currencies.

Environmental impact

Primarily, the Group's environmental activities focus on the environmental impact of its products. Close collaboration with suppliers is a key driver of environmental work. The company's standard products satisfy the RoHS directive, which prohibits the usage of lead in electrical and electronic products. The operations of most of the Swedish companies are ISO 14001 certified to ensure compliance with applicable standards, and work on environmental issues is structured and contributes to continuous improvement.

Risks

Beijer Electronics' business is affected by a number of exogenous factors, whose effects on consolidated profit and financial position can be controlled to varying degrees. Business risks like market risks, collaboration agreements, product liability, technological progress and dependency on staff are subject to continual analysis, and where necessary, measures are taken to reduce the Group's risk exposure. Beijer Electronics has sales and purchasing in foreign currencies and is thus exposed to currency risks. Normally, the Group does not hedge its various currency flows. Beijer Electronics also has some financial risks such as interest risk, liquidity risk and refinancing risk. The Board of Directors sets the rules for risk levels and managing financial risks at various levels in the Group. The goal is to minimize these risks, and clarify responsibility and authority. Following up on rules and their compliance is verified by the individuals responsible and reported to the Board of Directors. Interest-bearing liabilities were 689.1 MSEK (609.5) at year-end. Net debt amounted to 581.9 MSEK (492.8).

Shares and ownership structure

The parent company's share capital was 6,355,862 SEK, divided between 19,067,586 shares with a quotient value of 0.33 SEK as of December 31, 2016. At year-end, Beijer Electronics' largest shareholder was Stena Sessan Rederi AB, with 29.8% of the capital and votes. Lannebo Fonder held 15.6% of the capital and votes and SEB Fonder 13.7% of the capital and votes.

The AGM 2016 resolved to authorize the Board of Directors to decide to increase the company's share capital by a maximum of 635,334 SEK through the new issue of a maximum of 1,906,002 shares on one or more occasions in the period until the next AGM.

Guidelines for remuneration of Senior Executives

The Remuneration Committee is appointed each year by the Board of Directors. The Remuneration Committee consults on the Board of Directors' decisions on remuneration for the Chief Executive Officer and takes decisions on remuneration to other members of management. The Remuneration Committee also consults on proposals regarding potential incentive plans. The principles governing the work of the Remuneration Committee are reviewed in more detail in the Corporate Governance Report on page 76.

Basic salary and customary employment benefits are paid to management, plus pension benefits. Guidelines for remuneration to, and other employment terms of, senior managers for the financial year 2016 were approved by the AGM in April 2016. In 2016, remuneration to the Board of Directors and management, and a review of the incentive plan, is stated in Note 7 on pages 56-57.

Outlook for 2017

Beijer Electronics finished 2016 in a positive trend. The realignment in the year, with a significantly downscaled cost base, new product range and more customer-oriented sales organization, made the Group stronger. Accordingly, the Group is expected to be able to achieve higher sales and better underlying operating profit in 2017 than in 2016.

Proposed appropriation of profit

The following funds are at the disposal of the Annual General Meeting:

SEK 000
Retained profit	129,274
Net profit	-60,250
Total	69,024

The Board of Directors and Chief Executive Officer propose that these funds are appropriated as follows:

Dividends of 0 SEK per share to shareholders.

SEK 000
Total dividend	0
Carried forward	69,024
Total	69,024

If the proposal to pay no dividend for the financial year 2016 is ratified by the AGM, the Income Statement and Balance Sheet will be submitted to the AGM for adoption on April 27, 2017.

Consolidated Income Statement

SEK 000	2016	2015	Note
Revenues	1,121,509	1,374,575	2
Cost of goods sold	-586,558	-752,120	3
Gross profit	534,951	622,455
Sales overheads	-215,082	-231,286	3
Administration overheads	-258,198	-227,195	3.5
Research and development expenses	-102,740	-121,430	3
Other operating revenue and operating expenses	1,714	9,656	4
Operating profit	-39,355	52,200	6,7,8
Financial income	3,886	3,542
Financial expenses	-88,730	-12,402
Net financial income/expense	-84,844	-8,860	9
Profit before tax	-124,199	43,340
Tax	-1,914	-19,523	11
Net profit	-126,113	23,817
Attributable to parent company shareholders	-126,061	23,957
Attributable to non-controlling interests	-52	-140
Earnings per share, before and after dilution, SEK	-6.61	1.26	20

Statement of Comprehensive Income

SEK 000	2016	2015
Net profit	-126,113	23,817
Other comprehensive income: Items not potentially reclassifiable to profit or loss
Restatement of net pension obligations	-6,745	10,854
Items potentially reclassifiable to profit or loss
Translation differences	50,914	13,216
Comprehensive income	-81,944	47,887
Attributable to parent company shareholders	-81,740	48,266
Attributable to non-controlling interests	-204	-379

Consolidated Balance Sheet

SEK 000	Dec. 31, 2016	Dec. 31, 2015	Note
ASSETS
Fixed assets
Property, plant and equipment	82,718	83,493	13
Intangible assets	766,572	718,321	12
Participations in associated companies	1,000	72,594	15
Long-term receivables	2,896	2,157	17
Deferred tax assets	46,510	33,109	24
Total fixed assets	899,696	909,674
Current assets
Inventories	175,320	190,001	18
Accounts receivable	179,897	193,293	19
Income taxes recoverable	12,246	10,787
Other receivables	37,938	13,637	19
Prepaid expenses and accrued income	18,567	18,976	19
Cash and cash equivalents	107,228	116,636
Total current assets	531,196	543,330
Total assets	1,430,892	1,453,004
EQUITY AND LIABILITIES
Equity
Share capital	6,356	6,356
Other contributed capital	25,697	25,697
Translation reserves	111,509	60,443
Accumulated profit or loss	271,827	428,467
Equity attributable to parent company shareholders	415,389	520,963
Equity attributable to non-controlling interests	5,773	5,977
Total equity	421,162	526,940
Long-term liabilities
Borrowings	350,000	370,000	21
Other long-term liabilities	3,146	6,790	31
Pension provisions	96,243	84,569	21,23
Deferred tax liabilities	60,663	57,459	24
Other provisions	4,887	12,145	25
Total long-term liabilities	514,939	530,963
Current liabilities
Borrowings	236,260	144,157	21
Customer advances	5,934	7,437
Accounts payable–trade	116,174	106,059
Tax liabilities	2,761	5,794
Other liabilities	21,213	26,055
Accrued expenses and deferred income	112,449	105,599	26
Total current liabilities	494,791	395,101
Total liabilities	1,009,730	926,064
Total equity and liabilities	1,430,892	1,453,004

Information on the Group's pledged assets and contingent liabilities is in Note 28.

Consolidated Statement of Changes in Equity

	Attributable to Parent Company Shareholders				Non controlling
SEK 000	Share Capital a	Other Contributed Capital	Translation Reserves	Accumulated Profit or Loss b	Total	interests	Total equity
Opening equity, Jan. 1, 2015	6,356	25,697	46,988	417,490	496,531	6,356	502,887
Net profit				23,957	23,957	-140	23,817
Restatement of net pension obligations				10,854	10,854		10,854
Translation differences			13,455		13,455	-239	13,216
Comprehensive income	6,356	25,697	60,443	452,301	544,797	5,977	550,774
Transactions with shareholders
Dividends c				-23,834	-23,834		-23,834
Closing equity, Dec. 31, 2015	6,356	25,697	60,443	428,467	520,963	5,977	526,940

	Attributable to Parent Company Shareholders				Non controlling interests
SEK 000	Share Capital a	Other Contributed Capital	Translation Reserves	Accumulated Profit or Loss b	Total		Total equity
Opening equity, Jan. 1, 2016	6,356	25,697	60,443	428,467	520,963	5,977	526,940
Net profit				-126,061	-126,061	-52	-126,113
Restatement of net pension obligations				-6,745	-6,745		-6,745
Translation differences			51,066		51,066	-152	50,914
Comprehensive income	6,356	25,697	111,509	295,661	439,223	5,773	444,996
Transactions with shareholders
Dividends c				-23,834	-23,834		-23,834
Closing equity, Dec. 31, 2016	6,356	25,697	111,509	271,827	415,389	5,773	421,162

a 19,067,586 (19,067,586) shares with a quotient value of 0.33 SEK (0.33). All shares are of the same class.

b Including net profit for the year.

c Dividend per share was 1.25 SEK (1.25).

Consolidated Cash Flow Statement

SEK 000	2016	2015	Note
Operating activities			30
Profit before tax	-124,199	43,340
Adjustments for non-cash items, etc.	152,870	64,912
Tax paid	-15,998	-29,576
Cash flow from operating activities before changes in working capital	12,673	78,676
Cash flow from changes in working capital
Increase (-)/decrease (+) in inventories	12,494	1,639
Increase (-)/decrease (+) in trade receivables	-5,814	21,763
Increase (+)/decrease (-) in trade liabilities	-9,988	-17,419
Cash flow from operating activities	9,365	84,659
Investing activities
Investments in intangible assets	-61,234	-45,369
Investments in property, plant and equipment	-16,487	-17,347
Sale of subsidiaries, net liquidity effect	2,954	-14,440
Investments in financial assets		-2,809
Cash flow from investing activities	-74,767	-79,965
Financing activities
Change in overdraft facility	62,143	-23,246
Borrowings	20,000
Loan amortization	-10,000
Dividend paid	-23,834	-23,834
Cash flow from financing activities	48,309	-47,080
Cash flow for the year	-17,093	-42,386
Cash and cash equivalents at beginning of year	116,636	156,842
Exchange rate difference in cash and cash equivalents	7,685	2,180
Cash and cash equivalents at end of year	107,228	116,636

Parent Company Income Statement

SEK 000	2016	2015	Note
Net sales	37,883	61,593	29
	37,883	61,593
Operating expenses
Sales and administration overheads	-74,507	-76,697	5,6,7,8,29
Other operating expenses
Operating profit	-36,624	-15,104
Profit from financial items
Profit from participations in Group companies	39,341	46,814	9
Profit from participations in associated companies	-75,394		9
Profit from other securities and receivables classified as fixed assets	10,263	1,537	9
Interest income, etc.	7,840	6,821	9
Interest expenses, etc.	-15,259	-7,469	9
Profit after financial items	-69,833	32,599
Appropriations	4,100	14,754	10
Profit before tax	-65,733	47,353
Tax on profit for the year	5,483	-1,557	11
Net profit and comprehensive income for the year	-60,250	45,796

Parent Company Balance Sheet

SEK 000	Dec. 31, 2016	Dec. 31, 2015	Note
ASSETS
Fixed assets
Intangible assets	36,602	42,114	12
Property, plant and equipment	612	672	13
Financial assets
Participations in Group companies	383,354	383,385	14
Receivables from Group companies	304,221	290,618	16
Shares in associated companies	1,000	76,394
Deferred tax assets	9,046	3,040
Total financial assets	697,621	753,437
Total fixed assets	734,835	796,223
Current assets
Current receivables
Receivables from Group companies	11,946	33,019
Income taxes recoverable	864	1,127
Other receivables	202	308
Prepaid expenses and accrued income	5,292	4,803	19
Total current receivables	18,304	39,257
Cash and bank balances	1,166
Total current assets	19,470	39,257
Total assets	754,305	835,480

SEK 000	Dec. 31, 2016	Dec. 31, 2015	Note
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	6,356	6,356
Statutory reserve	1,244	1,244
Reserve for development expenditure	2,367
Total restricted equity	9,967	7,600
Non-restricted equity
Retained earnings	129,274	109,679
Net profit	-60,250	45,796
Total non-restricted equity	69,024	155,475	34
Total equity	78,991	163,075
Provisions
Pension provisions	6,365	5,121
Total provisions	6,365	5,121
Long-term liabilities
Liabilities to credit institutions	350,000	370,000	22
Liabilities to Group companies	41,443	122,867
Total long-term liabilities	391,443	492,867
Current liabilities
Liabilities to credit institutions	236,228	143,809	22
Accounts payable – trade	5,818	8,066
Liabilities to Group companies	26,412	5,114
Other liabilities	218	2,521
Accrued expenses and deferred income	8,830	14,907	26
Total current liabilities	277,506	174,417
Total equity and liabilities	754,305	835,480

Information on the parent company's pledged assets and contingent liabilities is in Note 28.

a The number of shares in the company is 19,067,586 (19,067,586).

Parent Company Statement of Changes in Equity

Quotient value (SEK) 0.33 0.33

	Restricted Equity		Non-restricted Equity
SEK 000	Share Capital a	Statutory Reserve	Accumulated Profit or Loss	Net Profit	Total Equity
Opening equity, Jan. 1, 2015	6,356	1,244	133,513		141,113
Net profit				45,796	45,796
Total changes to net worth, exc. transactions with company's shareholders	6,356	1,244	133,513	45,796	186,909
Dividend			-23,834		-23,834
Closing equity, Dec. 31, 2015	6,356	1,244	109,679	45,796	163,075

	Restricted Equity		Non-restricted Equity
SEK 000	Share Capital a	Statutory Reserve	Develop ment Fund	Accumulated Profit or Loss	Net Profit	Total Equity
Opening equity, Jan. 1, 2016	6,356	1,244		155,475		163,075
Change in reserve for development expenditure			2,367	-2,367
Net profit					-60,250	-60,250
Total changes to net worth, exc. transactions with company's shareholders	6,356	1,244	2,367	153,108	-60,250	102,825
Dividend				-23,834		-23,834
Closing equity, Dec. 31, 2016	6,356	1,244	2,367	129,274	-60,250	78,991
a) No. of shares	2016 19,067,586	2015 19,067,586

Parent Company Cash Flow Statement

SEK 000	2016	2015	Note
Operating activities
Profit after financial items	-69,833	32,599
Adjustments for non-cash items, etc.	87,134	8,012
Tax paid	-260	-836
Cash flow from operating activities before changes in working capital	17,041	39,775
Cash flow from changes in working capital
Increase (-)/decrease (+) in trade receivables	20,690	-5,870
Increase (+/decrease (-) in trade liabilities	13,080	-41,294
Cash flow from operating activities	50,811	-7,389
Investing activities
Investments in intangible assets	-2,367	-7,525
Investments in property, plant and equipment	-208	-258
Investments/amortization of financial assets		-2,809
Incorporation of subsidiary, net liquidity effect	-628
Cash flow from investing activities	-3,203	-10,592
Financing activities
Change in overdraft facility	62,419	-22,673
Borrowings	20,000
Increase/decrease of financial liabilities	-95,027	57,897
Loan amortization	-10,000
Dividend paid	-23,834	-23,834
Cash flow from financing activities	-46,442	11,390
Cash flow for the year	1,166	-6,591
Cash and cash equivalents at beginning of year	0	6,591
Cash and cash equivalents at end of year	1,166	0	30

Accounting principles

(A) General information

Beijer Electronics AB and its subsidiaries form a multinational Group that develops, markets and sells products and solutions in industrial automation and data communication. Beijer Electronics AB is registered in Sweden and has its registered office in Malmö. The address of the head office is Box 426, Stora Varvsgatan 13 A, 201 24 Malmö, Sweden. The company is quoted on the Nasdaq OMX Nordic Stockholm Small Cap List.

The most important accounting principles applied when preparing these Consolidated Accounts are stated below. These principles have been applied consistently for all years presented, unless otherwise stated.

Basis of preparation of financial statements

The Consolidated Accounts have been prepared in accordance with the Swedish Annual Accounts Act, RFR 1 Supplementary Accounting Regulations for Groups and IFRS (International Financial Reporting Standards), as well as IFRIC interpretation statements as endorsed by the EU and to the extent they came into effect before 1 January 2016. Standards that came into effect from 1 January 2016 onwards, for which earlier adoption has been encouraged, did not affect Beijer Electronics' accounting for 2015. The Consolidated Accounts have been prepared in accordance with the cost method with the exception of financial assets and liabilities measured at fair value through profit or loss.

Introduction of new and revised accounting principles (i) New and amended standards applied by the Group

No new standards, amendments or interpretations that became effective in the financial year beginning on 1 January 2016 have any material impact on the Group's financial statements.

(ii) New standards, amendments and interpretation statements regarding existing standards that have not yet come into effect and have not been applied prospectively by the Group

A number of new standards and interpretation statements come into effect from financial years beginning after 1 January 2016 and have not been adopted in the preparation of this financial report. None of the above are expected to have any material impact on the consolidated accounts apart from the following:

IFRS 9, "Financial Instruments" deals with the presentation, measurement and recognition of financial liabilities and assets. The complete version of IFRS 9 was issued in July 2014 and replaces those parts of IAS 39 relating to the presentation and measurement of financial instruments. The standard will apply from the financial year beginning 1 January 2018. Prospective adoption is permitted. The Group has commenced work on examining the effects of introducing this standard. This work is being conducted by a project team consisting of relevant internal resources, and appointed external expertise. The outcome of this work is scheduled to be complete in the third quarter of 2017.

IFRS 16 "Leases"

In January 2016, the IASB published a new standard on lease arrangements that will replace IAS 17 Leases and the associated interpretation statements IFRIC 4, SIC-15 and SIC-27. This standard requires the assets and liabilities related to all lease arrangements, with a few exceptions, to be recognized in the Balance Sheet. This accounting is based on the view that the lessee has a right to use an asset for a specific period of time, and simultaneously, an obligation to pay for this right. Essentially, accounting for the lessor will be unchanged. This Standard is applicable to financial years beginning 1 January 2019 or later. Prospective adoption is permitted. The EU has not yet endorsed the standard. The Group has not yet evaluated the effects of IFRS 16.

(B) Basis of preparation of the parent company and consolidated accounts

The parent company's functional currency is Swedish krona (SEK), which is also the presentation currency for the parent company and the Group. This implies that the financial statements are presented in SEK. All amounts, unless otherwise indicated, have been rounded to the nearest SEK 000.

The Group's accounting principles outlined below have been applied consistently to all periods presented in the Consolidated Accounts, unless otherwise indicated below. The Group's accounting principles have been applied consistently to reporting and the consolidation of the parent company, subsidiaries and associated companies. The Annual Accounts and Consolidated Accounts were approved for issuance by the Board of Directors on March 21, 2017. The Consolidated Income Statement and Balance Sheet and the Parent Company Income Statement and Balance Sheet will be subject to adoption at the Annual General Meeting (AGM) on 27 April 2017.

(C) Estimates and judgements

Preparing the financial statements in accordance with IFRS requires that the company management makes judgments and estimates as well as assumptions that influence the application of the accounting principles and the reported amounts of assets, liabilities, revenue and expenses. The estimates and assumptions are based on historical experiences and a number of other factors that appear reasonable in the prevailing circumstances. The result of these estimates and assumptions are then used to assess the carrying amounts of assets and liabilities that would otherwise not be clearly apparent from other sources. Actual outcomes may differ from these estimates and judgments.

The estimates and assumptions are reviewed regularly. Changes to estimates are reported in the period the change was made if the change affects this period only, or in the period the change is made and future periods if the change affects both the relevant period and future periods.

The estimates and assumptions that imply a significant risk of material restatements of carrying amounts of assets and liabilities in the following financial year are summarized below.

(i) Estimated impairment of goodwill

The Group tests annually whether goodwill is impaired in accordance with the accounting policy reviewed in the section (L) Intangible assets (i) Goodwill. The recoverable amount of cash-generating units has been measured by computing value in use. These calculations require the use of estimates. (Note 12).

(ii) Taxes

The Group is subject to income and other taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and computations for which the ultimate tax determination is uncertain. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts initially recorded, such differences impact the current and deferred tax assets and liabilities in the period in which such measurement is conducted.

(iii) Pension obligations

The present value of pension obligations is dependent on a number of factors that are measured on and actuarial basis with the help of a number of assumptions. The assumptions used when determining the net cost (revenue) of pensions include the discount rate. Any changes in these assumptions will impact on the carrying amounts of pension obligation.

The Group determines the applicable discount rate at the end of each reporting period. This is the interest used to determine the present value of estimated future payments that are expected to be required to settle the Group's pension obligations. When determining an appropriate discount rate, the Group takes into account the yields on investment-grade corporate bonds expressed in the currency in which benefits are to be paid, and with terms that correspond to the assessment of the relevant pension obligation. For more information and a sensitivity analysis, see note 23 provisions for pensions and similar obligations.

(iv) Restructuring expenses

In the year, the Group worked on a restructuring program consisting of staff reductions and other organizational changes to its operations. Decisions were taken on all activities, but not all activities were fully completed. The estimated total expense of the program was charged to the financial year. When measuring the cost of these restructuring measures, a number of estimates of final outcomes were made.

(D) Segment reporting

Operating segments are reported in a manner that is consistent with internal reporting as submitted to the chief operating decision-maker. The chief operating decision-maker is the function that is responsible for allocating resources and assessing the results of operating segments. In the Group, this function has been identified as the management team.

(E) Classification etc.

Essentially, parent company and consolidated fixed assets and longterm liabilities are amounts expected to be recovered or paid after more than 12 months from the reporting date only. Essentially, parent company and consolidated current assets and current liabilities are amounts expected to be recovered or paid within 12 months of the reporting date only.

(F) Consolidation principles

(i) Subsidiaries

Subsidiaries are companies that Beijer Electronics AB exerts a controlling influence over. The Group has a controlling influence over a company when it is exposed, or entitled, to variable returns on its holdings in the company and can influence these returns through its controlling influence over the company.

Subsidiaries are reported in accordance with acquisition accounting, which means that the acquisition of a subsidiary is treated as a transaction whereby the Group indirectly acquires a subsidiary's assets and takes over its liabilities and contingent liabilities. The consolidated cost is determined through an acquisition analysis related to the acquisition. This analysis partly determines the cost of the shares or operation, partly the fair value of the acquired identifiable assets at the acquisition date, and liabilities and contingent liabilities taken over. Non-controlling interests in the acquired company are recognized at fair value.

The cost of the subsidiary shares and operations is the fair value at the transfer date of assets, liabilities that have arisen or have been taken over, and issued equity instruments submitted as payment in exchange for the acquired net assets, and for acquisitions executed prior to 1 January 2010, transaction expenses directly related to the acquisition. For business combinations executed after 1 January 2010, transaction expenses are recognized in profit or loss. For business combinations where the cost exceeds the net value of the acquired assets and liabilities taken over and contingent liabilities, the difference is reported as goodwill. The Group applies the full goodwill valuation method for the reporting of goodwill. When negative, the difference is reported directly in the Income Statement.

In step acquisitions, the previous equity participations in the acquired entity are restated at fair value on acquisition. Potential profit or loss resulting from the restatement is recognized in profit or loss.

Each conditional purchase price to be transferred by the Group is recognized at fair value on acquisition. Subsequent changes to fair value of a conditional purchase price classified as an asset or liability are recognized in accordance with IAS 39, either in the Income Statement or other comprehensive income. Conditional purchase price classified as equity is not restated, and subsequent settlement is recognized in equity.

Subsidiary financial statements are included in the Consolidated Accounts from acquisition date to the date the controlling influence ceases.

The accounting principles for subsidiaries have, where applicable, been amended to guarantee the consistent application of the Group's principles.

(ii) Changes in participating interest in a subsidiary without change of control

Transactions with non-controlling interests that do not result in loss of control are recognized as equity transactions – i.e. as transactions with shareholders in their capacity as owners. In acquisitions from non-controlling interests, the difference between fair value of the purchase price paid and the actual acquired share of the carrying amount of subsidiary net assets is recognized in equity. Gains and losses on sales to non-controlling interests are also recognized in equity.

(iii) Sale of subsidiaries

When the Group no longer has a controlling influence, each remaining holding is stated at fair value at the time when control is lost. The amendment in carrying amount is recognized in the Income Statement. The fair value is used as the first-time carrying amount and is the basis for continued recognition of the remaining holding as an associated company, joint venture or financial asset. All amounts relating to the disposed entity previously recognized in other comprehensive income are reported as if the Group had directly disposed of the related assets or liabilities. This may result in amounts previously recognized in other comprehensive income being reclassified to profit or loss.

(iv) Associated companies

Associated companies are all companies where the Group exerts a significant, but not controlling, influence, which generally applies to share holdings of between 20 and 50% of the votes. Holdings in associated companies are reported according to the equity method. When applying the equity method, the investment is initially measured at cost and the carrying amount is increased or decreased subsequently to consider the company's share of the associated company's profit or loss after acquisition. The Group's carrying amount of holdings in the associated company includes goodwill identified at acquisition.

If the participating interest in an associated company decreases but the investment remains an associated company, only a proportional amount of that gain or loss previously recognized in other comprehensive income is reclassified to profit or loss.

The Group's share of profit or loss arising after the acquisition is recognized in the Income Statement and its share of changes in other comprehensive income after the acquisition is recognized in other comprehensive income with the corresponding change of the holding's carrying amounts. When the Group's share of an associated company's losses amount to, or exceed, its holding in the associated company, including potential unsecured receivables, the Group no longer reports additional losses, unless the Group has undertaken legal or informal obligations, or made payments on the associated company's behalf.

At the end of each reporting period, the Group judges whether there is objective evidence of impairment of its investment in the associated company. If so, the Group measures the impairment loss as the difference between the associated company's recoverable value and the carrying amount and reports this amount under the relevant heading in its Income Statement.

Gains and losses from "upstream" and "downstream" transactions between the Group and its associated companies are recognized in the consolidated financial statements only to the extent they correspond to non-affiliated companies' holdings in the associated company. Unrealized losses are eliminated unless the transaction constitutes evidence that the asset taken over is impaired.

The accounting principles applied in associated companies have been amended where applicable to guarantee consistent application of the Group's principles.

Dilution gains and losses on participations in associated companies are recognized in the Income Statement.

(v) Transactions eliminated on consolidation

Intra-group receivables and liabilities, revenues or expenses and unrealized profits or losses that arise from intra-group transactions between Group companies are wholly eliminated when preparing the Consolidated Accounts.

Unrealized profits that arise from transactions with associated companies and jointly controlled companies are eliminated to the extent corresponding to the Group's participating interest in the company.

Unrealized losses are eliminated in the same way as unrealized profits, but only to the extent that there is no indication of any value impairment.

(G) Foreign currency

(i) Transactions and Balance Sheet items

Foreign currency transactions are translated to functional currency at the rate of exchange ruling on the transaction date. The functional currency is the currency in the primary economic environments where the company conducts business. Foreign currency monetary assets and liabilities are translated to functional currency at the closing day rate. The exchange rate differences arising from translation of trade assets and liabilities, such as accounts receivable and accounts payable, are recognized in operating profit or loss. Other exchange rate differences are recognized as a financial income or financial expense in the Income Statement.

(ii) Financial statements of foreign operations

Assets and liabilities of foreign operations, including goodwill and other consolidated surplus values and deficits, are translated from the functional currency of the foreign operations to the Group's presentation currency, Swedish kronor, at the closing day rate. Income and expenses of foreign operations are translated to Swedish kronor at an average rate of exchange, which is an approximation of the rates of exchange at each transaction date. Translation differences arising coincident with translation of foreign operations are reported directly against other comprehensive income as a translation reserve.

(H) Revenues

(i) Goods sales and service assignments

Consolidated revenue consists of sales of goods and services. Revenues measured at the fair value of what has been received or will be received, correspond to those amounts received for goods sold after deducting discounts, returns and value-added tax. Revenues are recognized in the Income Statement when the essential risks and rewards associated with ownership have been transferred to the buyer. Revenue is not reported to accounts if it is considered probable that the economic rewards will not flow to the Group.

If there is significant uncertainty regarding payment, associated expenses or the risk of returns, and if the seller retains its commitment to ongoing management, usually associated with ownership, no revenue is recognized.

(I) Operating expenses, financial income and expenses (i) Cost of operating leases

Payments for operating lease arrangements are reported on a straightline basis in the Income Statement over the lease term. Benefits received coincident with signing the contracts are reported as a portion of the total lease expense in the Income Statement.

(ii) Cost of finance leases

Minimum lease charges are divided between interest expenses and amortization of the outstanding liability. Interest expenses are allocated over the lease term so each accounting period is charged with an amount corresponding to fixed interest rates for the liability reported for the relevant period. Variable expenses are expensed in the periods they arise.

(iii) Financial income and expenses

Financial income and expenses are interest income on bank balances, receivables and interest-bearing securities, interest expenses on loans, dividend income and realized and unrealized exchange rate differences on finance or investments in foreign currency. Interest income is recognized as revenue allocated over the term by applying the effective interest method.

The interest component of finance lease payments is reported in the Income Statement by applying the effective interest method.

Dividend income is reported when the right to receive the payment is determined.

(J) Financial instruments

Initially, financial instruments, apart from financial instruments in the categories of financial assets and liabilities measured at fair value through profit or loss, are reported at cost corresponding to the fair value of the instrument plus transaction expenses.

Financial instruments in the category of financial assets and liabilities measured at fair value through profit or loss are initially reported at fair value excluding transaction expenses.

Subsequent reporting of financial instruments depends on how the instruments are classified, as follows.

A financial asset or liability is reported in the Balance Sheet when the company becomes party to the instrument's contracted terms. Accounts receivable are reported in the Balance Sheet when the invoice has been sent. Liabilities are recognized when the counterparty has delivered, and there is a contracted payment liability, even if no invoice has been received as yet. Accounts payable – trade are recognized when invoices are received.

A financial asset is derecognized from the Balance Sheet when the contracted rights are realized, mature, or the company relinquishes control over them. The same applies to parts of a financial asset. A financial liability is derecognized from the Balance Sheet when the contracted commitments are fulfilled or extinguished in some other way. The same applies to parts of a financial liability.

Purchases and sales of financial assets are reported on the transaction date, which is the date the company undertakes to buy or sell the asset, apart from those cases where the company buys or sells listed securities, when settlement day accounting is applied.

The company evaluates whether there are objective indications that a financial asset or a group of financial assets are impaired at each reporting date.

In accordance with IAS 39, the Group classifies financial instruments in the following categories: financial assets or liabilities measured at fair value through profit or loss, investments held to maturity, loan receivables and accounts receivable, financial assets held for sale and other financial liabilities. The classification depends on the intention of the purchase of the financial instrument. Management determines classification of financial instruments on initial recognition.

Currently, financial instruments in the categories of loan receivables and accounts receivables, other financial liabilities and financial liabilities valued at fair value are held.

(i) Loan receivables and accounts receivable

'Loan receivables and accounts receivable' are financial assets that are not derivatives with fixed payments or payments that can be determined, and that are not listed on a recognized marketplace. These receivables arise when the company supplies funds, goods and services directly to the borrower, without intending to conduct trading in the receivable rights. This category also includes acquired receivables. Assets in this category are measured at amortized cost. The balance sheet item termed long-term receivables is included in this category.

(ii) Other financial liabilities

Financial liabilities not held for trading are measured at amortized cost. Amortized cost is determined on the basis of the effective interest calculated when the liability arose. This means that surplus values and deficits, and direct issue expenses, are allocated over the term of the liability. Long-term liabilities have an anticipated term of longer than one year while current liabilities have a term of less than one year.

(iii) Cash and cash equivalents

Cash and cash equivalents are cash and immediately available receivables with banks and similar institutions plus short-term liquid investments with a term from the time of acquisition not exceeding three months that are subject to only a negligible risk of value fluctuations. Cash and cash equivalents belong to the category loans receivable and accounts receivable.

(iv) Long-term receivables and other current receivables

Long-term receivables and other current receivables are receivables that arise when the company supplies funds without the intention of trading the right to receivables. If the anticipated period of holding is longer than one year, they are classified as long-term receivables, and if the period is shorter than one year, as other receivables. These receivables belong to the loan receivables and accounts receivable category.

(v) Accounts receivable

Accounts receivable are classified in the loan receivables and accounts receivable category. Accounts receivable are reported at the amount expected to be received after deductions for doubtful debt following individual assessment. The anticipated term of the accounts receivable is short, implying that the value is reported to accounts at the nominal amount without discounting. Provisions are made for depreciation of accounts receivable when there is objective evidence that the Group will not obtain all amounts that are due to it according to the original terms and conditions of the receivables. Indicators of impairment of accounts receivable may include significant financial difficulties experienced by the debtor, probability that the debtor will enter bankruptcy or undergo financial reconstruction as well as absent or delayed payments (overdue by more than 120 days). Impairment of accounts receivable is reported under operating expenses.

(K) Property, plant and equipment

(i) Owned assets

Property, plant and equipment are reported as assets in the Balance Sheet if it is likely that future economic rewards will flow to the company, and the cost of the asset can be reliably measured.

Property, plant and equipment are reported at cost in the Group less accumulated depreciation and potential impairment. The purchase price and costs directly attributable to the asset to bring it to the place and condition to be utilized in accordance with the purpose of the acquisition are included in the cost. Examples of directly attributable expenses included in costs are expenses for delivery and processing, installation, registration, consulting and legal services. The accounting principles for impairment are stated below.

Property, plant and equipment that consist of components with differing useful lives are treated as separate components of property, plant and equipment.

The carrying amount of property, plant and equipment is derecognized from the Balance Sheet on obsolescence or disposal, or when no future economic rewards are expected from usage or obsolescence/ disposal of the asset. Gains or losses arising from the disposal or obsolescence of an asset are the difference between the sales price and the asset's carrying amount less deductions for direct selling expenses. Gains and losses are reported as other operating revenue/expenses.

(ii) Leased asset

In the Consolidated Accounts, lease arrangements are classified as finance or operating leases. Finance leases occur when essentially, the economic risks and rewards associated with ownership are transferred to the lessee, and if not, they are classified as operating leases.

Assets held through finance lease arrangements have been reported as an asset in the Consolidated Balance Sheet. The obligation to pay future lease charges has been reported as long-term and current liabilities. The leased assets are subject to planned depreciation while lease payments are reported as interest and amortization of the liabilities. In operating leases, lease charges are expensed during the term, proceeding from usage, which can differ from what is actually paid in lease charges de facto in the year.

(iii) Additional expenditure

Additional expenditure is added to cost only if it is likely that the future economic rewards associated with the asset will flow to the company, and the cost can be reliably measured. All other additional expenditure is reported as an expense in the period it arises.

When additional expenditure is added to cost, it is decisive whether this expenditure relates to the exchange of identifiable components, or parts of components, whereupon such expenditure is capitalized. In those cases when new components are created, expenditure is also added to cost. Potential un-depreciated carrying amounts of exchanged components, or parts of components, are subject to obsolescence and expensed at exchange. Repairs are expensed continuously.

(iv) Depreciation principles

Depreciation is on a straight-line basis over the estimated useful life of an asset; land is not depreciated. The Group utilizes component depreciation, which means that the assessed useful lives of components are the basis for depreciation. Estimated useful lives:

Buildings, real estate used in business operations	5–60 years
Machinery and other plant	3–12 years
Equipment, tools fixtures and fittings	2–8 years

Real estate used in business operations has a number of components with differing useful lives. The main division is between buildings and land. No depreciation is affected on the land component, whose useful life is considered indefinite. However, buildings have several components whose useful lives vary.

The useful lives of these components have been assessed to vary between 5 and 60 years.

The following main groups of components have been identified and form the basis for depreciation on buildings: Building decorations, China 5 years

Other real estate components	25–60 years
The residual value and useful life of an asset is estimated yearly.

(L) Intangible assets

(i) Goodwill

Goodwill is the difference between the cost of a business combination and the fair value of the acquired assets, liabilities taken over and contingent liabilities.

Goodwill is measured at cost less potential accumulated impairment. Goodwill is allocated to cash-generating units, and is subject to yearly impairment tests. Impairment tests compare carrying amounts with estimated recoverable amounts. If the carrying amount exceeds the recoverable amount, the item is impaired. Impairment of goodwill is not reversed. Goodwill arising from acquisitions of associated companies is included in the carrying amount of participations in associated companies.

In business combinations, where cost is less than the net value of the acquired assets and liabilities taken over, and contingent liabilities, the difference is reported directly to the Income Statement.

(ii) Development

Expenditure for development, where research results or other knowledge are used to achieve new products, is reported as an asset in the Balance Sheet, if the product is technically and commercially usable and the company has sufficient resources to complete development, and use or sell the intangible asset later. The carrying amount includes expenditure for materials, direct expenditure for salaries and indirect expenditure that can be attributed to the asset in a reasonable and consistent way. Other expenditure for development is reported in the Income Statement as an expense when it arises. Development expenditure is reported in the Balance Sheet at cost less accumulated depreciation and potential impairment.

(iii) Other intangible assets

Other intangible assets acquired by the Group are reported at cost less accumulated amortization and impairment (see below).

Disbursed expenses for internally generated goodwill and internally generated brands are reported in the Income Statement when the expense arises.

(iv) Additional expenditure

Additional expenditure for capitalized intangible assets is reported as an asset in the Balance Sheet only when it increases the future economic rewards for the specific asset to which it is attributable. All other expenditure is expensed as it arises.

(v) Depreciation and amortization

Depreciation and amortization is reported in the Income Statement on a straight-line basis over the estimated useful lives of intangible assets, providing such useful lives are not indefinite. Goodwill and intangible assets with indefinite useful lives are subject to impairment tests yearly, or as soon as any indication that suggests that the asset's value is impaired arises. Intangible assets with determinable useful lives are amortized from the date they become available for use.

The estimated useful lives are: Trademarks and brands 10–20 years Customer contracts 6–10 years (remaining contract term) Capitalized development expenditure 5 years Capitalized IT expenditure 3–10 years Technology platforms 8-10 years

(M) Inventories

Inventories are measured at the lower of cost and net realizable value. Cost is estimated using the FIFO method. The net realizable value is the estimated sales price in operating activities, less estimated expenses for completing and achieving a sale.

The cost of produced goods and work in progress includes a reasonable proportion of indirect expenses based on normal capacity.

(N) Impairment

The carrying amounts of the Group's assets are subject to impairment tests at each reporting date. An exemption is made for inventories and deferred tax assets. If there is an indication of value impairment, the assets' recoverable value is calculated. For assets subject to the above exemption, valuations are tested according to the relevant standard.

Recoverable values of goodwill and other intangible assets within definite useful lives and intangible assets not yet ready for use are calculated yearly.

If it is impossible to determine significant independent cash flows of an individual asset, when conducting impairment tests, assets should be grouped at the lowest level it is possible to identify significant independent cash flows (cash-generating unit). Impairment is reported when an asset's or cash-generating unit's carrying amount exceeds recoverable value. Impairment is reported to the Income Statement.

Impairment of assets attributable to a cash-generating unit (group of units) is primarily assigned to goodwill. Later, proportional impairment of other assets included in the unit is effected (group of units).

Goodwill and other intangible assets with indefinite lives are subject to impairment tests yearly.

(i) Measuring recoverable value

The recoverable value of assets in the loan receivables and accounts receivable categories should be reported at amortized cost, calculated as the present value of future cash flows, discounted by the effective interest prevailing when the asset was reported for the first time. Assets with short maturities are not discounted.

The recoverable value of other assets is the greater of fair value less selling expenses and value in use. When calculating the value in use, future cash flows are discounted by a discount factor that considers risk-free interest, and the risk associated with the specific asset. For an asset that does not generate cash flows, which is significantly independent from other assets, the recoverable value of the cash-generating unit to which the asset belongs is calculated.

(ii) Reversal of impairment

Impairment of loan receivables and accounts receivable reported at amortized cost are reversed if a subsequent increase in recoverable value can be objectively attributed to an event that has occurred after the impairment was effected.

Goodwill impairment is not reversed.

Impairment of other assets is reversed if a change in the assumptions that served as the basis for calculating the recoverable value has occurred.

Impairment is only reversed to the extent the asset's carrying amount after reversal does not exceed the carrying amount the asset would have had if no impairment had been effected, considering the depreciation and amortization that would then have been effected.

(O) Share capital

(i) Re-purchase of treasury shares

Holdings of treasury shares and other equity instruments are reported as a reduction in equity. Acquisitions of such instruments are reported as a deduction from equity. Payment from the sale of equity instruments is reported as an increase in equity. Potential transaction expenses are reported directly against equity.

(ii) Dividends

Dividends are reported as a liability after AGM approval.

(P) Employee benefits

(i) Defined-contribution plans

A defined-contribution plan is a pension plan according to which the Group pays fixed fees to a separate legal entity. The Group is under no legal or informal obligation to pay any further fees if such legal entity does not hold sufficient assets to pay all employee benefits that are connected with the employee's service in the present or previous periods. Commitments relating to fees for defined-contribution plans are reported as an expense in the Income Statement when they arise.

(ii) Defined-benefit Plans

A defined-benefit plan is a pension plan that is not defined contribution. The distinguishing feature of defined-benefit plans is that an amount is indicated for the pension benefit an employee will receive after retirement, usually based on one or several factors like age, length of service and salary. The Group has defined-benefit plans in the parent company, subsidiaries in Sweden and two of the subsidiaries in Taiwan.

The Group's net commitments regarding defined-benefit plans are calculated separately for each plan by estimating the future benefits the employee would have accrued through his/her service in present and previous periods; these benefits are discounted to present value, and the fair value of potential plan assets is deducted. The discount rate is the yield at the reporting date of an investment grade corporate bond with a maturity corresponding to the Group's pension obligations. When there is no recognized market for such corporate bonds, market yields on government bonds with a corresponding maturity are used instead. The Group has utilized Swedish mortgage bonds with a maturity of 10 years as the basis for determining the discount rate for the defined-benefit plans in Sweden. This rate has then been extrapolated by the interest rate difference between Swedish government bonds with maturities corresponding to the average duration of the Group's pension obligations and a Swedish government bond with a maturity of 10 years. The yield on investment grade corporate bonds has been used for the calculation of defined-benefit plans. The calculation is conducted by a qualified actuary using the 'projected entity credit method.'

When the benefits of a plan improve, the proportion of the increased benefit attributable to employee service in previous periods is reported as an expense on a straight-line basis in the Income Statement allocated over the average period until the benefits are fully vested. If the benefits are fully vested, an expense is reported in the Income Statement directly.

Actuarial gains and losses resulting from judgments based on experience and changes to actuarial assumptions are recognized in other comprehensive income in the period they occur.

Expenses regarding services rendered in previous periods are recognized directly in profit or loss.

(iii) Severance pay

A provision is reported coincident with notices of redundancy issued to staff, only if the Group has a proven obligation to conclude employment before the normal time, or when remuneration is paid as an offering to encourage voluntary redundancy. In those cases where the company issues redundancy notices, a detailed plan is prepared, which as a minimum, includes workplaces, positions and approximate number of affected staff, and remuneration for each staff category or position and the time of the plan's execution.

(iv) Bonus plans

There are bonus plans in the Group. The bonus plans are based on trading profit and are payable if a predetermined target is achieved. The expenses for bonus plans are charged in the year when there is a legal obligation.

(Q) Provisions

A provision is reported in the Balance Sheet when the Group has an existing legal or informal obligation ensuing from an event that has occurred, and it is likely that an outflow of economic resources will be necessary to settle the commitment, and the amount can be reliably estimated. When the effect of the timing of the payment is significant, the provisions are calculated by discounting the expected future cash flow by an interest rate before tax that reflects the relevant market valuation of the time value of money and, if applicable, the risks associated with the liability.

(R) Tax

Income tax is made up of current tax and deferred tax. Income tax is reported in the Income Statement apart from when the underlying transaction is reported directly against other comprehensive income and equity respectively, whereupon the associated tax effect is reported in against other comprehensive income and equity respectively.

Current tax is tax paid or received for the present year, applying the tax rates that are enacted or substantively enacted as of the reporting date, which also include adjustments of current tax attributable to previous periods.

Deferred tax is calculated in accordance with the balance sheet method, proceeding from temporary differences between the book and taxable values of assets and liabilities. The following temporary differences are not considered: for temporary differences arising on first-time accounting of goodwill, first-time accounting of assets and liabilities that are not business combinations and neither influence reported nor taxable earnings at the time of the transaction. Nor are temporary differences attributable to shares in subsidiaries and associated companies that are not expected to be reversed in the foreseeable future considered. The valuation of deferred tax is based on how the carrying amounts of assets or liabilities are expected to be realized or settled. Deferred tax is calculated by applying those tax rates and tax regulations that are enacted or substantively enacted as of the reporting date.

Deferred tax assets regarding deductible temporary differences and loss carry-forwards are only reported to the extent that it is likely that they will be utilized. The value of deferred tax assets reduces when it is no longer considered likely that they can be utilized.

Deferred tax assets and liabilities are offset when there is a legal right to offset for current tax assets and tax liabilities and when the deferred tax assets and tax liabilities relate to tax debited by one and the same tax authority and either relate to the same taxpayer or different taxpayer, where there is an intent to settle the balances through net payments.

Potential additional income tax arising on dividends from foreign subsidiaries is reported as a liability.

(S) Contingent liabilities

A contingent liability is reported when there is a possible commitment arising from events that have occurred, and whose incidence is confirmed only by one or more uncertain future events, or when there is a commitment that is not reported as a liability or a provision because it is unlikely that an outflow of resources will be necessary.

(T) Cash Flow Statement

The Cash Flow Statement has been prepared in accordance with the indirect method. Cash and cash equivalents are made up of cash funds and immediately available balances with banks and corresponding institutions, and short-term, liquid investments with a term of less than three months from the time of acquisition, exposed to only insignificant risk of value fluctuations.

(U) Parent company accounting principles

The parent company has prepared its Annual Accounts in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. RFR 2 means that in its Annual Accounts for the legal entity, the parent company applies all the IFRS and statements endorsed by the EU, if this is possible within the framework of the Swedish Annual Accounts Act, and considering the relationship between accounting and taxation. The recommendation states the exemptions from, and supplements to, IFRS.

Differences between the Group's and parent company's accounting principles

Differences between the Group's and parent company's accounting principles are stated below. The following accounting principles of the parent company have been applied consistently for all periods published in the parent company's financial statements.

Subsidiaries and associated companies

In the parent company, shares in subsidiaries and associated companies are reported in accordance with acquisition accounting. Dividends from subsidiaries are reported as revenue.

Financial instruments

The parent company does not apply the valuation rules of IAS 39. In the parent company, financial assets are measured at cost less potential impairment, and financial current assets at the lower of cost or market.

Property, plant and equipment

Owned assets

In the parent company, property, plant and equipment are reported at cost less deductions for accumulated depreciation and potential impairment in the same way as the Group but with a supplement for potential write-ups.

Leased assets

In the parent company, all lease arrangements are reported in accordance with the rules for operating leases.

Employee benefits

Defined-benefit plans

The parent company uses a different basis for calculating definedbenefit plans than stipulated by IAS 19. The parent company follows the stipulations of the Swedish Pension Obligations Vesting Act and the Swedish Financial Supervisory Authority's instructions, because this is a pre-requisite for tax deductions. The most significant differences compared to IAS 19 are determining the discount rate, calculating the defined-benefit obligation on the basis of present salary levels excluding assumptions of future salary increases, and that all actuarial gains and losses are reported in the Income Statement when they arise.

Tax

In the parent company, untaxed provisions are reported including deferred tax liabilities. However, in the Consolidated Accounts, untaxed reserves are divided between deferred tax liabilities and equity.

Group contributions and shareholders' contributions for legal entities

In accordance with the alternative rule of RFR 2, Group contributions received and paid are recognized as appropriations. The tax effect of Group contributions received and paid is recognized in the Income Statement in accordance with IAS 12. Shareholders' contributions are reported directly against the recipient's equity and increase the value of shares and participations of the issuer, to the extent no impairment is necessary.

Segment reporting

Management has decided that operating segments are used to reach strategic decisions. Management judges operations from a product perspective, where operating segments are divided into the Industrial Automation Solutions (IAS) and Industrial Data Communication (IDC) business areas.

IAS develops, markets and sells operator terminals and IPC-based operator systems on a global basis, and markets and sells products from leading international vendors and data communication solutions from IDC in the Nordics and Baltics. IDC develops, markets and sells industrial data communication products on a global basis. 'Other' consists mainly of the parent company's shared functions.

Management judges operating segments based on operating profit. Management also judges sales from a geographical perspective divided between the Nordic region, Rest of Europe, North America, Asia and Rest of World. The information presented for operating segment revenue is for the geographical regions grouped according to the location of customers.

2016

SEK 000	IAS	IDC	Parent company	Elimination	Total
Revenues
External sales	623,143	498,366			1,121,509
Internal sales	112	6,645		-6,757
Total sales	623,255	505,011		-6,757	1,121,509
EBITDA*	-14,406	63,769	-28,477	2,133	23,019
Depreciation of property, plant and equipment	-5,552	-10,245	-268	-2,783	-18,848
Amortization of intangible assets	-14,151	-21,496	-7,879		-43,526
Operating profit	-34,109	32,028	-36,624	-650	-39,355
*of which restructuring expenses	-47,395	-1,885	-720		-50,000

2015

SEK 000	IAS	IDC	Parent company	Elimination	Total
Revenues
External sales	818,759	555,816			1,374,575
Internal sales	31	11,785		-11,816
Total sales	818,790	567,601		-11,816	1,374,575
EBITDA*	38,310	80,314	-7,833	4,721	115,512
Depreciation of property, plant and equipment	-5,934	-11,136	-326	-4,189	-21,585
Amortization of intangible assets	-15,326	-19,456	-6,945		-41,727
Operating profit	17,050	49,722	-15,104	532	52,200
*of which restructuring expenses	-4,125		-3,200		-7,325

Internal pricing between the Group's segments is determined on the basis of the arm's length principle, i.e. between parties that are mutually independent, well-informed and with an interest in the transactions.

The Group is not dependent on large customers. The Group or business areas have no single customer representing more than 10% of the Group's total sales.

The operating segments' profit or loss includes directly related items and items that can be allocated by segment in a reasonable and reliable way.

Geographical Division of Sales

SEK 000	2016	2015
Sweden	187,483	241,692
Norway	59,411	99,341
Denmark	39,418	58,066
Finland	18,071	60,699
Nordics	304,383	459,798
Germany	89,788	121,137
UK	74,434	68,878
France	33,182	30,079
Rest of Europe	174,538	214,746
Total Europe	676,325	894,638
North America	194,658	239,697
China	88,745	80,618
Taiwan	65,038	57,526
Rest of Asia	73,894	70,401
Rest of World	22,849	31,695
Total	1,121,509	1,374,575

Geographical Division of Fixed Assets

SEK 000	2016	2015
Sweden	371,784	419,994
Rest of Europe	61,044	64,586
US	173,592	166,288
Taiwan	245,530	224,659
Rest of World	1,236	1,038
Total	853,186	876,565

Note 3

Cost types

The Consolidated Income Statement classifies expenses by function. Information on the significant cost types follows.

SEK 000	2016	2015
Cost of materials	442,703	546,541
Salaries, benefits and social security expenses	409,268	449,797
Depreciation and amortization of intangible assets and property, plant and equipment	62,374	63,313
Other expenses	248,233	272,380
	1,162,578	1,332,031

Note 4

Other operating revenue and operating expenses

SEK 000	2016	2015
Group
Exchange rate gains on trade receivables/liabilities	19,655	23,199
Exchange rate losses on trade receivables/liabilities	-19,190	-22,450
Other	1,249	8,907
	1,714	9,656

Note 5

Fees and reimbursement to Auditors

SEK 000	2016	2015
Group
PricewaterhouseCoopers
Auditing	1,478	1,458
Auditing in addition to audit assignment	0	24
Tax consultancy	178	246
Other assignments	216	59
Total PwC	1,872	1,787
Other auditors
Auditing	222	275
Tax consultancy	32	0
Other assignments	3	19
Total other auditors	257	294
Parent company
PricewaterhouseCoopers
Auditing	714	616
Auditing in addition to audit assignment	0	0
Tax consultancy	0	0
Other assignments	37	19
Total PwC	751	635

Operating lease payments

SEK 000	2016	2015
Group
Total lease expenses	39,647	39,006
Contracted future minimum lease payments related to irrevocable contracts due for payment:
Within one year	35,568	34,963
Between one and five years	101,923	104,027
Total	137,491	138,990
Parent Company
Total lease expenses	8,350	10,232
Contracted future minimum lease payments related to irrevocable contracts due for payment:
Within one year	8,434	8,624
Between one and five years	33,735	34,496
Total lease expenses	42,169	43,120

Lease payments mainly relate to rent of office premises.

Note 7

Employees and personnel expenses

Average Number of Employees

	2016	Of which men,%	2015	Of which men,%
Parent company
Sweden	23	75	28	66
Total in parent company	23	75	28	66
Subsidiaries
Australia	1	0	0	0
China	10	75	14	74
Denmark	0	0	4	75
Estonia	20	82	17	79
Finland	0	0	13	85
France	10	79	10	79
Germany	36	56	32	59
Korea	1	100	0	0
Latvia	0	0	2	50
Lithuania	0	0	2	100
Norway	13	92	21	86
Singapore	4	100	4	100
Sweden	235	86	237	85
Taiwan	248	43	241	41
Turkey	16	63	16	63
UK	42	80	47	77
USA	55	67	65	66
Total in subsidiaries	690	66	724	67
Group total	714	67	752	67

Gender Breakdown, Group Management

	Dec. 31, 2016	Dec. 31, 2015
	Prop. women	Prop. women
Parent company
Board	33%	33%
Other senior managers	0%	0%
Group total
Board	33%	33%
Other senior management	0%	0%

Salary, Other Remuneration and Social Security Expenses

SEK 000		2016		2015
	Salary and remuneration	Social security expenses	Salary and remuneration	Social security expenses
Parent Company	20,131	13,723	22,086	12 195
(of which pension expenses)		(4,679)a		(4,737)a
Subsidiaries	280,879	94,535	318,969	96 542
(of which pension expenses)		(24,160)		(28,833)
Group total	301,010	108,258	341,055	108 737
(of which pension expenses)		(28,839)b		(33,570)b

a Of parent company pension expenses, 1,315,000 SEK (1,142,000) relates to the Board and CEO.

b Of consolidated pension expenses, 1,315,000 SEK (1,142,000) relates to the Board and CEO.

Remuneration to Senior Executives – Board of Directors

Directors' fees were 1,785,000 SEK (1,625,000), allocated as follows:

SEK	2016	2015
Board of Directors
Anders Ilstam, Chairman of the Board	550,000	500,000
Bert Åke Eriksson		225,000
Johan Wester	255,000
Ulrika Hagdahl	225,000	225,000
Maria Khorsand	255,000	225,000
Bo Elisson	225,000	225,000
Christer Öjdemark	275,000	225,000

Board members Ulrika Hagdahl and Bo Elisson charged fees of 375,000 SEK for consulting assignments in the subgroup Westermo. Board members Anders Ilstam and Christer Öjdemark received 50,000 SEK each for

committee work included in the above table. Board members Maria Khorsand and Johan Wester received 30,000 SEK each for

committee work included in the above table.

Remuneration and Other Benefits to the CEO and other Senior Executives in the Year

The cost of remuneration and benefits to the CEO and senior executives amounted to the following:

SEK 000		2016		2015
	CEO b	Other Senior Executives a	CEO	Other Senior Executives a
Basic salary	3,600	15,167	4,199	13,844
Performance related pay	0	464	0	1,813
Other benefits	96	1,536	85	1,785
Pension expenses	1,315	2,964	1,142	2,477
Total salary and remuneration	5,011	20,131	5,426	19,919

a There are 6 (8) other senior executives. Other Senior Executives are defined as Beijer Electronics' management and Lars-Ola Lundkvist, Westermo. See p. 86-87.

b 5,705 SEK relates to costs for Senior Executives not employed at the end of last year.

Chief Executive Officer

Apart from contracted basic salary, the Chief Executive Officer is also entitled to performance-related pay. Performance-related pay is based on the Group's operating profit and is a maximum of six months' salary. Pension and other customary benefits are additional. Each year, 35% of gross salary including bonus is provisioned as pension assurance for the CEO. This pension is defined contribution and becomes payable at age 65. According to agreement, the CEO has a notice period from the company's side of 18 months, that cannot be claimed for termination initiated by the CEO. The notice period from the Chief Executive Officer's side is six months. No other remuneration upon termination has been agreed.

Other Senior Executives

Other senior executives have basic salary with a performance-related component. The performance-related component is based partly on the Group's and partly on each business area's operating profit and sales growth. Yearly performance-related pay is a maximum of six months' salary. Other senior executives have defined contribution pension agreements on market terms. Other customary benefits are additional. Maximum notice periods of 12 months for termination from the company's side have been agreed for other senior executives. This is applicable to all apart from one, who has a six-month notice period and nine months' severance pay for termination from the company's side.

Board of Directors' proposed guidelines 2017

Total remuneration covers basic salary and performance-related pay. Pension and other customary benefit are additional. The performancerelated component is based on the satisfaction of predetermined targets. These targets relate to the company's profit performance and other important change targets. For the CEO and other senior managers, the annual performance-related component may amount to a maximum of six months' salary.

If the CEO's employment is terminated by Beijer Electronics, the CEO has an 18-month notice period. No other dismissal pay has been agreed. If termination of other senior managers' employment is from the company's side, and the termination is not due to gross negligence, a maximum notice period of 12 months is agreed, apart from one, who has a six-month notice period and nine months' severance pay. Otherwise, there are no differences on the previous year.

Decision-making Process

The Remuneration Committee consults on the Board of Directors' decisions on remuneration to the Chief Executive Officer and decides on remuneration to other senior executives. Directors' fees are resolved by the AGM.

Depreciation, amortization and impairment of property, plant and equipment and intangible assets

SEK 000	2016	2015
Group
Capitalized development expenditure	-19,323	-17,725
Capitalized expenditure for software	-8,120	-7,147
Customer contracts, brands and similar rights	-16,083	-16,856
Buildings and land	-2,065	-1,502
Machinery and other plant	-2,200	-2,747
Equipment, tools, fixtures and fittings	-14,583	-17,336
	-62,374	-63,313
Parent Company
Capitalized expenditure for software	-7,879	-6,945
Equipment, tools, fixtures and fittings	-268	-326
	-8,147	-7,271

Note 9

Net financial income/expense

2016	2015
503	768
1,690	2,216
1,693	558
3,886	3,542
-15,135	-8,602
	-3,800
-71,594
-2,001
-88,730	-12,402
-84,844	-8,860

SEK 000	2016	2015
Parent Company
Dividend	40,000	46,814
Write-down of shares in subsidiaries	-659
Profit or loss from participation in Group companies	39,341	46,814
Write-down of participation in associated companies	-75,394
Profit or loss from participation in associated companies	-75,394
Exchange rate difference	10,263	3,771
Write-down of loans, Group companies		-2,234
Profit or loss from other securities and receivables
that are fixed assets	10,263	1,537
Interest Income, Group companies	5,867	4,112
Interest income, other	283	493
Revaluation of additional purchase consideration	1,690	2,216
Interest income etc.	7,840	6,821
Interest expenses, Group companies	-463	-543
Interest expenses, other	-12,777	-6,926
Other financial expenses	-2,019
Interest expenses etc.	-15,259	-7,469

Appropriations

SEK 000	2016	2015
Parent company
Tax allocation reserve, reversal in the year		1,050
Group contributions, received	4,100	13,704
	4,100	14,754

Note 11

Tax on Net Profit

SEK 000	2016	2015
Group
Current tax
Tax expense for the period	-8,338	-16,564
Excise duties	-2,577	-3,809
Adjustment of tax attributable to previous year	-529	-459
	-11,444	-20,832
Deferred tax (Note 24)
Occurrence and reversal of temporary differences	-1,176	966
Deferred tax in the deductible value of loss carry-forwards changed in the year	10,706	343
	9,530	1,309
Total reported tax expense, Group	-1,914	-19,523
Parent company
Current tax
Excise duties	-523	-835
	-523	-835
Deferred tax
Occurrence and reversal of temporary differences	-658	-722
Deferred tax in the deductible value of loss carry-forwards changed in the year	6,664	0
	6,006	-722
Total reported tax expense, parent company	5,483	-1,557

Reconciliation of actual tax

2016	2015
-124,199	43,340
27,324	-9,535
2,015	-1,838
-21,731	-1,590
4,160	1,135
-7,597	2,875
	-2,345
-529	-459
-2,577	-3,809
-2,979	-3,957
-1,914	-19,523
-65,733	47,353
14,461	-10,418
-18,279	-635
9,824	10,333
	-2
-523	-835
5,483	-1,557

Consolidated tax totaling 1,549,000 SEK (-3,168) attributable to actuarial revaluation of pension obligations was reported in other comprehensive income.

Intangible assets

SEK 000	Goodwill	Development Expenditure	IT Expenditure	Trademarks & Brands	Customer Contracts	Technology Platforms	Total
Group
Opening balance Jan. 1, 2015	480,724	193,821	73,240	98,563	124,735	17,993	989,076
Internally developed assets		35,609					35,609
Other investments			7,739	2,021			9,760
Divestments			-1,042				-1,042
Exchange rate differences for the year	10,922	-3	-17	1,846	951	767	14,466
Closing balance Dec. 31, 2015	491,646	229,427	79,920	102,430	125,686	18,760	1,047,869
Opening balance Jan. 1, 2016	491,646	229,427	79,920	102,430	125,686	18,760	1,047,869
Internally developed assets		57,776	2,755				60,531
Other investments				703			703
Divested operations			-597		-16,853		-17,450
Exchange rate differences for the year	27,093	317		3,148	5,083	1,428	37,069
Closing balance Dec. 31, 2016	518,739	287,520	82,078	106,281	113,916	20,188	1,128,722
Accumulated depreciation, amortization and impairment
Opening balance Jan. 1, 2015		-126,750	-31,373	-42,233	-77,900	-9,656	-287,912
Amortization in the year		-17,742	-7,147	-5,971	-9,149	-1,719	-41,728
Divestments			1,042				1,042
Exchange rate differences for the year				-282		-668	-950
Closing balance Dec. 31, 2015		-144,492	-37,478	-48,486	-87,049	-12,043	-329,548
Opening balance Jan. 1, 2016		-144,492	-37,478	-48,486	-87,049	-12,043	-329,548
Amortization in the year		-19,323	-8,120	-5,261	-9,081	-1,741	-43,526
Divested operations			587		15,598		16,185
Exchange rate differences for the year		-293		-848	-3,216	-904	-5,261
Closing balance Dec. 31, 2016		-164,108	-45,011	-54,595	-83,748	-14,688	-362,150
Carrying amounts
As of Jan. 1, 2015	480,724	67,071	41,867	56,330	46,835	8,337	701,164
As of Dec. 31, 2015	491,646	84,935	42,442	53,944	38,637	6,717	718,321
As of Jan. 1, 2016	491,646	84,935	42,442	53,944	38,637	6,717	718,321
As of Dec. 31, 2016	518,739	123,412	37,067	51,686	30,168	5,500	766,572

The Group reports the following intangible asset classes:

Intangible Asset Class	Useful Life	Amortization Method
Goodwill	Indefinite	Impairment tests
Development expenditure	5 years	Straight-line amortization over the asset's useful life based on cost
IT expenditure	3–10 years	Straight-line amortization over the asset's useful life based on cost
Trademarks & brands	10–20 years	Straight-line amortization over the asset's useful life based on cost
Customer contracts	6–10 years	Straight-line amortization over the asset's useful life based on cost
Technology platforms	8–10 years	Straight-line amortization over the asset's useful life based on cost

The parent company reports the following intangible asset classes:

Intangible Asset Class	Useful Life	Amortization Method
IT expenditure	3–10 years	Straight-line amortization over the asset's useful life based on cost

SEK 000
Parent company
Accumulated cost
Opening balance Jan. 1, 2015	70,574
Other investments	7,525
Closing balance Dec. 31, 2015	78,099
Opening balance Jan. 1, 2016	78,099
Other investments	2,367
Closing balance Dec. 31, 2016	80,466
Accumulated amortization and impairment
Opening balance Jan. 1, 2015	-29,040
Amortization in the year	-6,945
Closing balance Dec. 31, 2015	-35,985
Opening balance Jan. 1, 2016	-35,985
Amortization in the year	-7,879
Closing balance Dec. 31, 2016	-43,864
Carrying amounts
As of Jan. 1, 2015	41,534
As of Dec. 31, 2015	42,114
As of Jan. 1, 2016	42,114
As of Dec. 31, 2016	36,602

Impairment tests for cash-generating units including goodwill

The following cash-generating units, which are parts of the segments for "IAS" and "IDC" respectively, have significant reported goodwill values in relation to the Group's total reported goodwill values:

Total goodwill value in Group	518,739	491,646
IDC	281,490	271,095
IAS	237,249	220,551
SEK 000	2016	2015

The 'IAS' Unit

The impairment test for the 'IAS' unit is based on the calculation of value in use. This value is based on forecast cash flows for a total of 5 years (5 years), of which the first is based on the unit's budget for the coming financial year.

The forecast cash flows for a total of 5 years beyond 2016 have been based on yearly growth of revenues of 5% for 2017 and 6% for other years)-14% for 2016 and +2% for other years) and expenses of 3% (0–2%. Perpetual growth of revenue and expenses of 2% (1) has been assumed subsequently.

The present value of forecast cash flows has been calculated by applying a discount rate of 12% (12%) before tax. The important assumptions of the forecasts are reviewed in the following table.

Key Variables	Estimation Method
Market share and market growth	Current market share assumed for future periods. Nominal yearly market growth of 2% (2%) assumed.
Costs of materials and gross profit	Cash flow forecasts are based on improved percentage gross profit. This assumption is based on a changed composition of the product portfolio with a higher share of software sales from 2019 onwards.
General costs	Forecasts based on average cost inflation of 2% (2).
Rate of exchange NTD/SEK	Rate of exchange forecasts based on present quoted rate of exchange.
Rate of exchange USD/NTD	Rate of exchange forecasts based on present quoted rate of exchange.

The 'IDC' Unit

The impairment test for the 'IDC' unit is based on the calculation of value in use. This value is based on forecast cash flows for a total of 5 years (5), of which the first is based on the unit's budget.

The forecast cash flows for a total of 5 years beyond 2016 have been based on yearly growth of revenues of 8% (10%) and expenses of 4% (10%). Perpetual growth of revenue and expenses of 2% (2) has been assumed subsequently.

The present value of forecast cash flows has been calculated by applying a discount rate of 12% (12) before tax. The important assumptions of the forecasts are reviewed in the following table.

Key Variables	Estimation Method
Market share and market growth	Current market share assumed for future periods. Nominal yearly market growth of 2% (2) assumed.
Costs of materials and gross profit	Cash flow forecasts are based on unchanged percentage gross profit. This assumption is consistent with previous experience and present agreements.
General costs	Forecasts based on average cost inflation of 2% (2).
Rate of exchange EUR/SEK	Rate of exchange forecasts based on present quoted rate of exchange.
Rate of exchange NTD/SEK	Rate of exchange forecasts based on present quoted rate of exchange.
Rate of exchange GBP/SEK	Rate of exchange forecasts based on present quoted rate of exchange.

Sensitivity analysis for cash-generating units including goodwill

When analyzing impairment of goodwill, the company conducted a sensitivity analysis for the cash-generating units. The following restatements have been made compared to the information presented above:

Impairment tests for cash-generating units including capitalized development expenses

The following cash generating units, which are part of the segments for 'IAS' and 'IDC', have significant carrying amounts for capitalized development expenditure. The capitalized development expenditure has a finite useful life. This expenditure is amortized over a period of 3–5 years. The book value of capitalized development expenditure is:

SEK 000 2016 2015 IAS 51,144 32,857 IDC 72,268 52,078

development expenditure, Group 123,412 84,935

IAS
	2016	2015
Discount rate	+1%	+1%
Sales growth	-1%	-1%

IDC

	2016	2015
Discount rate	+1%	+2%
Sales growth	-1%	-2%

The sensitivity analyses indicate that there is no impairment given these restatements of computation variables.

The above sensitivity analysis for IAS and IDC should be viewed in combination. When analyzing individual parameters against reported figures, the analyses of IAS and IDC both indicate that a change in the discount rate of +2% and sales growth of -2% would not give rise to any need for impairment

Sensitivity analysis for cash-generating units including capitalized development expenses

Total value of capitalized

When analyzing impairment of capitalized development expenses, the company conducted a sensitivity analysis relating to expected sales growth and gross margin of underlying products. The following restatements have been made compared to the base computation:

	2016	2015
Sales growth	-10%	-10%
Gross margin	-10%	-10%

The sensitivity analyses indicate that there is no impairment loss given these restatements of computation variables.

Property, plant and equipment

		Group			Parent Company
SEK 000	Buildings and Land	Plant and Machinery	Equipment, Tools, Fixtures and Fittings	Total	Equipment, Tools, Fixtures and Fittings
Cost
Opening balance Jan. 1, 2015	52,715	26,610	142,148	221,473	8,801
Purchases	2,847	2,728	15,708	21,283	258
Divestments	-44	-8,906	-16,740	-25,690	-30
Exchange rate differences	-120	794	1,744	2,418
Closing balance Dec. 31, 2015	55,398	21,226	142,860	219,484	9,029
Opening balance Jan. 1, 2016	55,398	21,226	142,860	219,484	9,029
Purchases	449	8,132	8,739	17,320	208
Divested operations			-3,575	-3,575
Other divestments			-4,415	-4,415	-10
Exchange rate differences	3,184	938	4,497	8,619
Closing balance Dec. 31, 2016	59,031	30,296	148,106	237,433	9,227
Amortization
Opening balance Jan. 1, 2015	-22,537	-14,711	-100,583	-137,831	-8,061
Amortization in the year	-1,502	-2,747	-17,336	-21,585	-326
Divestments	44	8,516	16,344	24,904	30
Exchange rate differences	237	-696	-1,020	-1,479
Closing balance Dec. 31, 2015	-23,758	-9,638	-102,595	-135,991	-8,357
Opening balance Jan. 1, 2016	-23,758	-9,638	-102,595	-135,991	-8,357
Amortization in the year	-2,065	-2,200	-14,583	-18,848	-268
Divested operations			3,460	3,460
Other divestments			1,342	1,342	10
Exchange rate differences	-762	-580	-3,336	-4,678
Closing balance Dec. 31, 2016	-26,585	-12,418	-115,712	-154,715	-8,615
Carrying amount
As of Jan. 1, 2015	30,178	11,899	41,565	83,642	740
As of Dec. 31, 2015	31,640	11,588	40,265	83,493	672
As of Jan. 1, 2016	31,640	11,588	40,265	83,493	672
As of Dec. 31, 2016	32,446	17,878	32,394	82,718	612

Of Group amounts reported as of December 31, 2016, 5,211,000 SEK (10,352,000) relates to assets via financial leasing contracts.

Participations in Group companies

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Accumulated cost
At beginning of year	383,385	383,385
Incorporated companies	628
Write-down	-659
Carrying amount at end of year	383,354	383,385

Specification of parent company and Group holdings of participations in Group companies

SEK 000			Dec. 31, 2016	Dec. 31, 2015
			Carrying	Carrying
Subsidiary/Corp. ID no./Reg. Office	No. of Shares	Holding, % a	Amount	Amount
Beijer Electronics Automation AB, 556701-3965, Malmö e	1,000	100.0	100	47,758
Beijer Electronics AS, 912965058, Drammen	1,117	100.0
Beijer Electronics A/S, 56162712, Roskilde	1,000	100.0
Brodersen Automation AS, 957004083, Drammen	300	100.0
Brodersen Automation AB, 556288-8650, Malmö	3,000	100.0
Beijer Electronics Products AB, 556701-4328, Malmö e	1,000	100.0	47,758	100
Beijer Electronics Holding Inc., 36-4027234, Chicago	1,000	100.0
Beijer Electronics Inc., 87-0396688, Salt Lake City	10	100.0
Beijer Electronics Holding GmbH, HRB 22383, Nürtingen	1	100.0
Beijer Electronics Verwaltungs GmbH, HRB 724413 Nürtingen	1	100.0
Beijer Electronics GmbH & Co. KG, HRA 222129, Nürtingen	1	100.0
Beijer Electronics Trading (Shanghai) Co, Ltd, Shanghai	1	100.0
Beijer Electronics Corp., 05027350, Taipei	116,534	100.0
Westermo Teleindustri AB, 556361-2604, Stora sundby	100,000	100.0	212,792	212,792
Westermo Data Communications AB, 556687-8962, Västerås	1,000	100.0
Westermo Research and Development AB, 556710-8856, Västerås	1,000	100.0
Westermo Fastighets AB, 556288-4360, Eskilstuna	10,000	100.0
Westermo OnTime AS, 981567560, Oslo	2,353,724	100.0
Westermo Data Communications Ltd., 3059742, Southhampton	50,000	100.0
Westermo Data Communications GmbH, 30070-54742, Waghäusel	50,000	100.0
Westermo Data Communications SARL, 4333142590001, Champlan	7,624	100.0
Westermo Data Communications Pte Ltd., 200707554, Singapore	1	100.0
Westermo Data Communications Pty Ltd., 611 051 846, North Ryde, NSW	10,000	100.0
Korenix Technology Co., Ltd, Taipei b	18,467,000	100.0	100,903	100,903
Smart Jumbo Investment Ltd, Samoa	300,000	100.0
Korenix Technology Ltd, Shenzhen	2,000,000	100.0
Korenix Technology Ltd, Samoa	1	100.0
Huei Chun Electronics Co, Taipei	500,000	100.0
Lanshan Co., Ltd, Taiwan	2,300,000	50.5
Beijer Electronics do Brasil LTDA, 14.199.311/0001-36, Sao Paoloc	52,492	100.0	202	202
Beijer Electronics India Private Ltd, U31103PN2012FTC144166, Pune d	300,000	100.0		659
Beijer Elektronik ve Tic. A.Ş, 556233, Istanbul	1,527	90.0	20,971	20,971
Beijer Electronics UK Ltd, 9863522, London	50,000	100.0	628
			383,354	383,385

a Equity as a percentage of capital, corresponding to the share of the votes for the total number of shares.

b Of the Group's total holdings, 52.5% is held by Beijer Electronics AB.

c Of the Group's total holdings, 99.0% is held by Beijer Electronics AB.

d Liquidation in progress. Of the Group's total share, 99.9% is held by Beijer Electronics AB.

e The value change between Beijer Electronics Automation AB and Beijer Electronics Products AB relates to the transfer

of operations between the companies, effective from January 1, 2017.

Participations in associated companies

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Carrying amount at beginning of year	72,594	73,585
Share of associated company profit a		-3,800
New issue		2,809
Write-down	-71,594
Carrying amount at end of year	1,000	72,594

a Share of associated company profit after tax and minority share in associated company.

Company, Reg. Office

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Carrying amount
HCA Participações S.A., Sao Leopoldo, Brazil	1,000	72,594

In 2013, Beijer Electronics AB acquired 24.79% of the shares of HCA Participações S.A, a holding company that owns 65.16% of the shares of Altus Sistemas de Automatição S.A.

Altus develops and manufactures high-technology control systems.

HCA Participações S.A. completed a new issue in 2015, Beijer Electronics AB's ownership holding totaled 21.96% (21.96%) as of December 31, 2016.

The Brazilian economy has deteriorated sharply since the acquisition. Coupled with Altus' exposure to the oil and gas sector, this has had a significantly adverse impact on the company's sales and profit, which means that the long-term value is uncertain. Accordingly, the Board of Beijer Electronics AB has decided to write down the value of the holding in HCA Participações S.A in 2016.

Note 17

Other long-term receivables

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Accumulated cost
At beginning of year	2,157	3,972
Additional receivables	1,061	116
Amortization for the year	-478	-1,945
Exchange rate differences for the year	156	14
Carrying amount at end of period	2,896	2,157

As all long-term receivables are essentially subject to variable interest rates and the effect of discounting is marginal, fair value is judged to largely correspond to book value.

Note 18

Inventories

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Raw materials and consumables	102,156	103,575
Finished goods and goods for resale	62,180	74,329
Work in progress	7,712	8,305
Advance payments to suppliers	422	571
Goods in transit	2,850	3,221
	175,320	190,001

Note 16

Long-term receivables from Group companies

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Parent company
Accumulated cost
At beginning of year	290,618	300,046
Additional receivables	11,270	0
Amortization for the year	-9,326	-17,107
Currency differences for the year	11,659	7,679
Carrying amount at end of period	304,221	290,618

The fair value of loans to related parties is measured at cost, and in those cases where denominated in foreign currency, at the closing day rate. The effective interest of long-term receivables to related parties is 0.50–2.86% (0.39–2.32).

Accounts receivable and other current receivables

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Accounts receivable	181,982	196,116
Provision for doubtful debt	-2,085	-2,823
Accounts receivable – net	179,897	193,293
Other receivables	37,938	13,637
Prepaid expenses and accrued Income	18,567	18,976
	236,402	225,906

The fair value of accounts receivable and other receivables is consistent with book value.

Accounts receivable are judged individually when each financial report is being prepared. Net profit has been charged with expenses for doubtful and bad debt of 193,000 SEK (243,000). The individually judged receivables subject to impairment mainly relate to customers that have got into unexpected financial difficulties. A judgment that a portion of the receivables is expected to be recoverable has been made. The cost of doubtful and bad debt is included in the other expenses income statement item. The maximum exposure to credit risk on the reporting date is the fair value of each category of receivable stated above. The Group has no assets pledged as collateral.

The Group is not dependent on major customers. The Group has no single customer that provides more than 10% of total Group sales.

Reported amounts, by currency, relating to the Group's Accounts receivable and other receivables are as follows:

SEK 000	Dec. 31, 2016	Dec. 31, 2015
EUR	56,388	70,825
USD	82,409	56,958
NOK	4,536	8,276
DKK	4,538	7,434
NTD	27,919	21,277
GBP	9,785	9,996
SEK	32,713	38,154
Other currencies	18,114	12,986
	236,402	225,906

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Rents	4,055	4,026
Insurance	1,137	884
Lease payments	1,840	1,757
Bank charges	281	0
IT charges	1,202	1,158
Other items	10,052	11,151
	18,567	18,976
Parent Company
Rents	2,171	2,120
Insurance	645	641
Lease payments	189	276
Bank charges	281	0
IT charges	1,202	1,158
Other items	804	608
	5,292	4,803

Note 20

Earnings per share

Dividends paid per share, SEK a	1.25	1.25
Earnings per share, SEK	-6.61	1.26
Number of outstanding shares	19,068	19,068
Net profit	-126,061	23,957
SEK 000	2016	2015

a No dividend has been proposed for 2016.

Interest-bearing liabilities

This Note contains information about the company's contractual terms relating to interest-bearing liabilities. For more information on the company's exposure to interest risk and the risk of exchange rate fluctuations, see Note 27.

Book value is judged to be a good approximation of fair value. Bank borrowing is renegotiated every three months with new interest rates on market terms. Provisions for pensions and finance lease liabilities have been discounted at an adequate market interest rate for the applicable term. Financial leasing liabilities are discounted at the implicit interest rate at the start of the respective leasing contracts.

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Long-term liabilities
Pension provisions	96,243	84,569
Bank loans	350,000	370,000
Finance lease liabilities	3,146	6,790
	449,389	461,359
Current liabilities
Overdraft facility	196,260	134,121
Short-term portion of bank loans	40,000	10,036
Short-term portion of finance lease liabilities	3,477	3,937
	239,737	148,094

Credit terms

The company's bank borrowings are subject to covenants in the form of two financial key ratios according to the definitions indicated below.

Total leverage

Total leverage according to the Credit Terms for 2015 and 2016 is defined as interest-bearing liabilities, excluding provisions for pension obligations, less cash and cash equivalents in relation to EBITDA and excluding restructuring costs.

Total leverage may not exceed 6.65 (3.50).

Interest coverage ratio

Interest coverage ratio is defined as EBITDA and excluding restructuring costs in relation to net interest income/expense (interest expenses less interest income).

The interest coverage ratio may not be less than 3.50 (3.50).

Each quarter, the company reports the quantitative outcome of both covenants to its lenders. The computations are based on financial information as stated in quarterly reports.

Finance Lease Liabilities

Finance lease liabilities become due for payment as follows:

SEK 000	Minimum Lease Payments	Interest	Principal
Group 2016
Within one year	3,374	103	3,477
Between one and five years	3,119	27	3,146
	6,493	130	6,623
Group 2015
Within one year	3,656	281	3,937
Between one and five years	6,603	187	6,790
	10,259	468	10,727

The agreements that are the basis of finance lease liabilities consist of vehicle leases, leasing of server centers, and leases of various items of office furniture.

Note 22

Liabilities to credit institutions

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Parent Company
Long-term liabilities
Bank loans	350,000	370,000
	350,000	370,000
Current liabilities
Overdraft facility	196,228	133,809
Short-term portion of bank loans	40,000	10,000
	236,228	143,809

Pension provisions, etc.

Defined-benefit Obligations

SEK 000	2016	2015
Group
Defined-benefit obligations
Present value of funded obligations	20,500	18,826
Fair value of plan assets	-15,353	-13,841
Deficit in funded plans	5,147	4,985
Present value of unfunded plans	91,096	79,584
Net amount in Balance Sheet	96,243	84,569
The net amount is divided between plans in the following countries:

Net amount in Balance Sheet	96,243	84,569
Taiwan	5,821	5,357
Sweden	90,422	79,212

	2016	2015
Plan assets are divided into the following components:
Shares	41%	51%
Bonds and fixed-income funds	32%	27%
Bank balances	21%	18%
Other	6%	4%
Total plan assets	100%	100%

100% (100) of plan assets relate to funded commitments in Taiwan. Under Taiwanese legislation, the state pension authority manages all such assets.

Pension Expense

SEK 000	2016	2015
Defined-benefit plans
Expense for pensions accrued in the year	4,086	4,249
Return on plan assets	-191	-265
Interest expense	2,953	3,217
Expense for defined-benefit plans	6,848	7,201
Expense for defined-contribution plans	21,991	26,369
Payroll tax and tax on profits	3,692	3,566
Total expense, defined-contribution plans	25,683	29,935
Total expense for remuneration after terminated employment	32,531	37,136

Reconciliation of Net Amounts for Pensions in the Balance Sheet

The following table illustrates how the net amount in the Balance Sheet changed in the period:

SEK 000	2016	2015
Amount at beginning of year	84,569	90,989
Expense for defined-benefit plans	6,848	7,201
Contributions from employees	-1,787	-1,278
Disbursement of benefits	-941	-827
Actuarial revaluation, financial assumptions	6,991	-11,342
Translation difference	563	-174
Amount at the end of year	96,243	84,569

Actuarial assumptions

The following significant actuarial assumptions were applied when calculating commitments (weighted averages):

	2016	2015
Discount rate, %	2.91	3.14
Future salary increases, %	3.03	3.04
Inflation, %	1.61	1.63
Staff turnover, %	6.02	6.13
Expected remaining lifespan after pensionable age 65	22.39	23.21
Group
Assets pledged for pension obligations	None	None
Parent Company
Assets pledged for pension obligations	None	None

For more information on the method of setting the discount rate, see Note 1, section (p) Employee Benefits, section (ii) Defined-benefit Plans. A sensitivity analysis of the effect of the discount rate on the scale of defined-benefit obligations is reported in the sensitivity analysis section below.

Sensitivity analysis

The value of defined-benefit obligations consists of the present value of expected future pension disbursements. Accordingly, measurements of the defined-benefit obligations are materially dependent on the applied discount rate in the computation of present value. Adjustments of the discount rates are a result of changing actuarial assumptions, and accordingly, the effects of these restatements are reported in actuarial gain or loss.

The effect of restatements of adjusted assumptions rate on the present value of commitments as of December 31, 2016 is stated below.

Adjusted discount rate (percentage point)	-0.50%	+0.50%
Present value of commitment (+ increase / - decrease)	11,607	-9,984
Adjusted salary growth (percentage points)	-0.50%	+0.50%
Present value of commitment (+ increase / - decrease)	-2,755	3,332
Adjusted inflation expectations (percentage points)	-0.50%	+0.50%
Present value of commitment (+ increase / - decrease)	-7,875	8,945
Adjusted term (years)	-1 year	+1 year
Present value of commitment (+ increase / - decrease)	-3,160	3,131

Estimate for the coming financial year

SEK 000	2017
Defined-benefit obligations
Expense for pensions accrued in the year	3,544
Return on plan assets	-190
Interest expense	3,038
Total	6,393

Regarding the coming financial year's income statement item of actuarial profit/loss, the company does not wish to present any quantified estimate, because this amount is materially dependent on the value of the discount rate, which in turn, is dependent on macroeconomic factors. The company refers the reader to the section on the sensitivity analysis and progress of the discount rate in this section on actuarial assumptions in order for the reader to obtain a view of possible progress. Given currently available information, the company does not judge that any material changes to the discount rate will occur for the coming year.

Defined contribution plans

The company judges that the expense for defined contribution plans will be at a level that is comparable with recent years.

Deferred tax

SEK 000	Deferred Tax Asset	Deferred Tax Liability	Net
Group Dec. 31, 2016
Property, plant and equipment	2,861	5,610	-2,749
Intangible assets		48,091	-48,091
Inventories	5,390		5,390
Pension provisions	12,956		12,956
Untaxed reserves		6,544	-6,544
Restructuring reserve	3,232		3,232
Other provisions	1,843	418	1,425
Loss carry-forwards	20,228		20,228
Deferred tax liability, net	46,510	60,663	-14,153

SEK 000	Deferred Tax Asset	Deferred Tax Liability	Net
Group Dec. 31, 2015
Property, plant and equipment	2,861	6,337	-3,476
Intangible assets		41,464	-41,464
Inventories	6,374		6,374
Pension provisions	10,993		10,993
Untaxed reserves		9,167	-9,167
Other provisions	3,359	491	2,868
Loss carry-forwards	9,522		9,522
Deferred tax liability,
net	33,109	57,459	-24,350

SEK 000	Amount at Beginning of Year	Recognized in Income Statement	Posted to Other Comprehensive Income	Exchange Rate Differences	Amount at End of Year
Group
Property, plant and equipment	-3,476	900		-173	-2,749
Intangible assets	-41,464	-5,370		-1,257	-48,091
Inventories	6,374	-984			5,390
Pension provisions	10,993	414	1,549		12,956
Untaxed reserves	-9,167	2,623			-6,544
Restructuring reserve	0	3,232			3,232
Other provisions	2,868	-1,992		549	1,425
Loss carry-forwards	9,522	10,706			20,228
	-24,350	9,529	1,549	-881	-14,153

Of the Group's deferred tax receivables, 15-16 MSEK is expected to be settled in 2017 and of the Group's deferred tax liabilities 15-17 MSEK is expected to be settled in 2017, with additional estimated new deferred tax liabilities of 7–9 MSEK. Tax loss carry-forwards for which no deferred tax liability have been capitalized total 34.5 MSEK (0.6).

Note 25

Other provisions

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Opening balance	12,145	7,785
Recognized in Income Statement:
– additional provisions	741	6,852
– reversed unutilized amounts	-221	0
Utilized in year	-7,823	-2,544
Exchange rate differences	45	52
Closing balance	4,887	12,145

Of the closing balance for the year, 4,887,000 SEK (10,435,000) relates to guarantee provisions.

Accrued expenses and deferred income

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Group
Accrued salaries and vacation pay	50,217	56,509
Accrued social security expenses	23,342	24,451
Restructuring	20,150	0
Personnel	9,499
Relocation of production	3,294
Other	7,357
Other items	18,740	24,639
	112,449	105,599

Parent company
Accrued salaries and vacation pay	1,954	8,083
Accrued social security expenses	4,680	4,842
Other items	2,196	1,982
	8,830	14,907

Note 27

Financial risks and finance policies

Net debt

Net debt and equity as of December 31, 2016 and 2015 respectively were as follows:

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Interest-bearing liabilities	689,126	609,453
Less: cash and cash equivalents	-107,228	-116,636
Net debt	581,898	492,817
Total equity	421,162	526,940

Loan, interest and maturity structure

The following table illustrates the maturity structure of financial loan liabilities and the interest renegotiation points on the reporting date.

SEK 000	Interest Rate, %	Interest Fixing Period	Remaining Duration, Interest Fixing Period	Currency	Nominal Amount in Original Currency b
Bank loans:
Bank loan	3.00	91 days	91 days		SEK 290,000
Bank loan	3.00	91 days	91 days	SEK	100,000
Overdraft facility a	1.70– 2.98	30–91 days		SEK/EUR/ USD/NOK/DKK/ GBP/SGD	196,260

a The overdraft facility has contracted interest of 0.30% on credit granted.

b The next due date of the bank loans is March 31, 2017. The final maturity date is March 18, 2019.

Transaction exposure

The Group's transaction exposure for 2016 is divided between the following currencies:

	Sales		Operating profit
SEK 000	Amount	%	Amount	%
Group 2016
EUR	368,097	32.8	199,814	-507.7
USD	314,827	28.1	-25,290	64.3
NOK	41,073	3.7	23,613	-60.0
DKK	31,585	2.8	17,550	-44.6
GBP	68,217	6.1	41,422	-105.3
TWD	54,242	4.8	-113,186	287.6
CNY	49,814	4.4	24,905	-63.3
SEK	145,444	13.0	-237,456	603.4
Other currencies	48,210	4.3	29,273	-74.4
	1,121,509	100.0	-39,355	100.0

Translation exposure

Foreign net assets of the Group are divided between the following currencies:

Currency/Amount, 000	Foreign Currency	Swedish Currency	%
Group 2016
TWD	1,114,503	312,841	46.9
USD	25,469	231,694	34.7
EUR	4,451	42,583	6.4
CNY	20,671	27,061	4.1
DKK	12,732	16,385	2.5
GBP	1,113	12,447	1.9
NOK	-455	-480	-0.1
Other currencies		25,087	3.6
		667,618	100.0

Finance policy

Through its operations, the Group is exposed to various types of financial risk. Financial risk means fluctuations in the company's profits and cash flow ensuing from variations in rates of exchange, interest levels and credit risks. The Board of Directors decides on currency hedging and additional new long-term funding.

Interest risks

Beijer Electronics' net financial income/expense and profit or loss are affected by fluctuations in interest rates. The Group's average interest fixing period is some 90 days. Interest rates at year-end vary between 1.70 and 3.00% (0.80–1.84%). The average interest factor for the year is approximately 2.1% (1.1). An interest rate fluctuation of 1% would affect consolidated profit before tax by some 5.9 MSEK (5.1).

Credit risks

Group cash and cash equivalents are divided between the parent company and its subsidiaries, with no single entity holding more than 25% (33%) of Group total cash and cash equivalents. The Group's policy is to invest cash and cash equivalents in regionally reputable and leading banks with a high credit rating.

The Group is exposed to credit risks in accounts receivable. The Group's customers are subject to credit checks involving the col-lection of information on the customers' financial position from various credit agencies. The Group has prepared a Credit Policy for managing customer credit, which continuously monitors customers' progress and solvency.

Advance payments, bank guarantees or other collateral are necessary for customers with low credit ratings or insufficient credit history. In the Group, accounts receivable more than 120 days overdue are generally 100% provisioned. However, consideration should be taken to the incidence of credit insurance, etc. Additionally, individual assessments are made where necessary. The cost of doubtful and bad debt in 2016 was 0.2 MSEK (0.2), or 0.02% (0.02%) of Group sales.

Currency risks

The Group operates internationally and is exposed to various types of currency risk. The primary exposure relates to purchases and sales in foreign currencies, where the risk may be in fluctuations in the currency of the financial instrument, customer's or supplier's invoice, and the currency risk in expected or contracted payment flows, termed transaction exposure. Currency fluctuations also occur in the translation of foreign subsidiaries' assets and liabilities to the parent company's functional currency (translation exposure). In the financial year, the Group did not apply currency hedging to its payment flows or exposure in foreign subsidiaries, in accordance with the Group's policy.

The largest purchase currencies for Beijer Electronics are the USD, EUR and SEK. The largest invoicing currencies are EUR, USD, SEK and NOK. The Group has a high degree of flow matching of its currency exposure, implying relatively low value at risk (theoretical risk value). The policy is for the Group subsidiaries to manage their currency risk by controlling revenues and expenses against functional currency, and allow the parent company to conduct netting of various currencies.

The parent company evaluates its net exposure to each purchasing and sales currency on an ongoing basis with the aim of judging the effect on consolidated profit. A 10% depreciation/appreciation of the Swedish krona against a basket of the most important currencies would increase/decrease sales by some 93 MSEK and operating profit by some 16 MSEK, given year-2016 levels and mix of sales and earnings. 87% (85) of Group sales are in foreign currency.

The Group has significant net assets denominated in NTD and USD. A 10% depreciation/appreciation in the value of the SEK against NTD and USD respectively is judged to increase/decrease equity by 31 MSEK and 23 MSEK respectively.

Liquidity risks

Beijer Electronics has loans that become due for payment at different times. An overdraft facility represents a portion of these loans, which has a contracted one-year term, and can be renewed for 12 months at the end of its term after renewed evaluation. The Group's acquisition finance has been aggregated in single acquisition funding facilities with variable interest and straight-line amortization. The Group is within the limits of the terms of credit issued by lenders as guarantees for credit issuance.

As of March 18, 2015, Beijer Electronics entered into a new bank agreement with a contract period of three years. The agreement was extended in 2016 and terminates on March 18, 2019.

Capital risk

The Group's target for its capital structure is to ensure the Group can continue its operations, so it can continue to generate returns for shareholders, benefit other stakeholders and maintain an optimal capital structure to limit the cost of capital. To maintain or adjust its capital structure, the Group may change the dividend paid to shareholders, repay capital to shareholders, issue new shares or sell assets to reduce its liabilities. There are no financial capital risks because the company does not have a financial trading mandate, but works with operating capital exclusively.

Pledged assets and contingent liabilities and contingent assets

		Group		Parent Company
SEK 000	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Pledged assets	10,812	9,926	None	None
Contingent liabilities
Guarantee commitments, FPG/PRI	1,100	1,027	127	102
Guarantee commitments in favor of subsidiaries			28,685	31,589
Other guarantee commitments	1,404	2,550
Total contingent liabilities	2,504	3,577	28,812	31,691

Note 29

Related parties

The parent company has related party transactions with its subsidiaries (see Note 14). For transactions with the CEO, Board members and senior executives, see Note 7.

Summary of transactions with related parties

Related Party Relationship	Year	Sales of Services to Related Party	Purchases of Services from Related Party	Receivable from Related Party as of December 31	Liability to Related Party as of December 31
Subsidiaries	2016	37,883	0	316,167	67,855
Subsidiaries	2015	61,593	0	323,637	127,981

Transactions with related parties are priced on arm's length basis.

Cash flow

SEK 000	Dec. 31, 2016	Dec. 31, 2015
Cash and cash equivalents – Group
Cash and cash equivalents include the following components:
Cash and bank balances	107,228	116,636
Total, Balance Sheet	107,228	116,636
Total, Cash Flow Statement	107,228	116,636
Cash and cash equivalents – parent company
Cash and cash equivalents include the following components:
Cash and bank balances	1,166	0
Total, Balance Sheet	1,166	0
Total, Cash Flow Statement	1,166	0

Interest paid and dividend received

	Group			Parent Company
SEK 000	2016	2015	2016	2015
Dividend received			40,000	46,814
Interest received	503	768	4,583	3,818
Interest paid	-15,135	-8,602	-13,004	-8,599
	-14,632	-7,834	31,579	42,033

Adjustments for items not included in cash flow

	Group			Parent Company
SEK 000	2016	2015	2016	2015
Depreciation, amortization and impairment	62,374	63,313	8,147	7,271
Write-down of shares in subsidiaries			659
Write-down of participations in associated companies	71,594		75,394
Pension provisions	6,010	4,753	1,244	741
Other provisions	-7,258	4,361	1,690
Unpaid restructuring cost	20,150
Other		-7,515
	152,870	64,912	87,134	8,012

Unutilized credit facilities

	Group			Parent Company
SEK 000	2016	2015	2016	2015
Unutilized credit facilities amount to	53,740	116,191	53,740	116,191

Other liabilities

SEK 000	Dec. 31, 2016 Dec. 31, 2015
Group
Other long-term liabilities
Present value, additional purchase consideration		1,690
Other long-term liabilities	3,146	5,100
Total	3,146	6,790

The reported additional purchase consideration for 2015 relates to the acquisition of Petek Teknoloji (now Beijer Elektronik ve Tic. A. Ş). The additional purchase consideration is performance-based and the valuation as of December 31, 2015 was conducted on the basis of the Group management's best assessment of the final outcome. The additional purchase consideration is conditional on the acquired company's sales and operating profit in 2016, payable in February 2017. Sales and operating profit in the acquired company did not meet the conditions for payment of the additional purchase consideration in 2016, implying a reversal of the liability as of December 31, 2016, which has been accounted as financial income.

Note 32

Subsequent events

All operations in subsidiary Beijer Electronics Automation AB have been transferred to the subsidiary Beijer Electronics Products AB. The liquidation of Beijer Electronics India Private Ltd. has been completed. There were no other significant events after the end of the year in the period until signing this Annual Report.

Note 33

Parent company

Beijer Electronics AB is a Swedish-registered limited company with its registered office in Malmö, Sweden. The parent company's shares are quoted on the NASDAQ OMX Nordic Stockholm Small Cap List, under the ticker symbol BELE. The address of the head office is: Box 426, 201 24 Malmö, Sweden.

The Consolidated Accounts for 2016 include the parent company and its subsidiaries, collectively termed the Group. The Group also includes participations in associated companies.

Note 34

Proposed appropriation of profit

SEK 000	2016	2015
Retained profit	129,274	109,679
Net profit	-60,250	45,796
Total	69,024	155,475
Total dividend	0	23,834
Carried forward	69,024	131,641
Total	69,024	155,475

Corporate Governance Report 2016

Beijer Electronics AB is a Swedish public limited company quoted on NASDAQ OMX Nordic Stockholm Small Cap List, under the ticker symbol BELE. Beijer Electronics applies the Swedish Code of Corporate Governance. The complete version of the Code is available at www.bolagsstyrning.se.

The Corporate Governance Report for the financial year 2016 has been prepared in accordance with the Code's recommendations. Beijer Electronics previously reported an instance of non-compliance with clause 7.2 of the Code, second paragraph, relating to the number of members of the Audit Committee. After the Code was revised in 2016, and the regulations governing the Audit Committee are now in compliance with applicable legislation, there are no instances of non-compliance to report.

The company's Auditors have performed a statutory review of the Corporate Governance Report.

Shareholders and Articles of Association

There were 3,463 (3, 547) shareholders at the end of the year. The largest shareholder is Stena Sessan Rederi AB with some 29.8% of the votes. Of total share capital at year-end, some 12% (12) was held by foreign investors. Share capital is 6,355,862 SEK divided between 19,067,586 shares. Share capital shall be a minimum of 2,000,000 SEK and a maximum of 8,000,000 SEK. Each share has a quotient value of approximately 0.33 SEK. All shares have one vote and equal entitlement to the company's assets and profits. For more information on the share and shareholders, see pages 90–91. Information on shareholders is updated quarterly and is also available at the Group's website, www.beijerelectronics.com.

Beijer Electronics' Articles of Association have no special stipulations regarding the appointment or dismissal of Board members or amendments to the Articles of Association. For such resolutions at shareholders' meetings, the majority requirements stated in the Swedish Annual Accounts Act apply.

AGM 2016

Beijer Electronics' AGM was held on April 26, 2016. 108 shareholders attended the Meeting personally or by proxy, representing some 64% of the votes. Chairman of the Board Anders Ilstam was elected Chairman of the Meeting. All ordinary Board members and the company's Auditors attended the Meeting.

Chairman of the Board Anders Ilstam reported on the work of the Board of the Directors in the financial year 2015. Beijer Electronics' CEO and President Per Samuelsson reviewed significant events in 2015 and the company's progress in the first quarter of 2016. The Auditors reported their observations of the company's accounting records and administration to the Meeting, and presented a review of their work over the past year.

The minutes of the Meeting are available from Beijer Electronics and have been published on the company's website.

Some of the resolutions of the meeting follow:

• To pay 1.25 SEK per share as dividend for the financial year 2015, in accordance with the Board of Directors' proposal.

• The Board of Directors shall consist of six (6) members with no deputies.

• To re-elect the Board members Ulrika Hagdahl, Anders Ilstam, Maria Khorsand, Bo Elisson, Christer Öjdemark and Johan Wester.

• To re-elect Anders Ilstam as Chairman of the Board in accordance with the Nomination Committee's proposal.
• To appoint registered audit firm PricewaterhouseCoopers, Malmö, Sweden as the company's auditors for the period until the end of the AGM 2017.
• That fees to the Chairman of the Board and other Board members are 1,625,000 SEK, and fees to each Board member for work in the Remuneration or Audit Committee of 50,000 SEK to the Chairman and 30,000 SEK to others.
• To adopt the Board of Directors' proposed guidelines for remunerating senior executives.
• To authorize the Board of Directors to decide to increase the company's share capital by a maximum of 635,334 SEK through the new issue of a maximum of 1,906,002 shares on one or more occasions in the period until the next AGM.
• To reach a resolution to amend the Articles of Association implying the removal of the Auditor's four-year term of office. The amendment means that the Auditor's term of office will comply with the main rule of the Companies Act, which stipulates a term of one year.

Nomination Committee for the AGM 2017

The Nomination Committee was presented on October 3, 2016 and has five members, with one representative of each of the four largest shareholders at the time of publication (holdings on the last business day of August 2016), and the Chairman of the Board. Martin Svalstedt, representing Stena Sessan Rederi AB, leads the work of the Nomination Committee. The Nomination Committee's duty is to prepare proposals for Board members, the Chairman of the Board, fees to Board members and Auditors, and Chairman of the next AGM. The Nomination Committee remains in place until a new Committee is appointed. The Nomination Committee held five meetings where minutes were taken. A number of informal telephone and email discussions were also held. All Board members have been interviewed by the Nomination Committee. The Nomination Committee also reviewed the results of the evaluation of the Board of Directors undertaken in order to improve the Board's working methods and effectiveness.

Nomination Committee Name	Owner's Representative Of	Share of Votes Aug. 31, 2016
Martin Svalstedt	Stena Sessan	29.79%
Claes Murander	Lannebo Fonder	15.26%
Per Trygg	SEB Fonder	13.89%
Arne Lööw	Fjärde AP-fonden	6.05%
Anders Ilstam, Chairman of the Board
Total		64.99%

In its work on appointing the Board of Directors for the forthcoming term of office, the Nomination Committee appraised the work of the Board. The Nomination Committee judges that members are highly committed, their attendance was high and that the members of the Board of Directors represent broad competence, with thorough industrial and financial knowledge, as well as knowledge of international circumstances and markets.

When preparing its proposal for the Board of Directors, the Nomination Committee especially considered the demands made by the company's strategic development, international operations, governance, control and monitoring on the Board's competence and composition. The Board of Directors' requirements for versatility and breadth in terms of competence, experience and background was also considered.

The Nomination Committee's proposal for the Board of Directors to the AGM was presented on March 14, 2017.

The Nomination Committee proposes that the Board of Directors consist of five members. The Nomination Committee is proposing that Maria Khorsand, Ulrika Hagdahl, Bo Elisson, Christer Öjdemark and Johan Wester are re-elected as Board members. Anders Ilstam declined re-election. The Nomination Committee does not consider that any change to the composition of the Board is necessary at present.

The Nomination Committee judges that the proposed Board of Directors has an expedient composition in terms of the company's operations, development work and other circumstances to be able to address the needs the company's operations will set.

The rules stipulating independence of Board members in accordance with the Swedish Code of Corporate Governance have been observed. According to the Nomination Committee, all proposed Board members, apart from Johan Wester, are not affiliated to Beijer Electronics' major shareholders. All Board members are not affiliated to Beijer Electronics.

The Board of Directors

The Board of Directors has the ultimate responsibility for the company's organization and administration and reaches decisions on strategic matters. In the financial year 2016, Beijer Electronics' Board of Directors had six members appointed by the AGM.

Beijer Electronics has not set any specific age limit for Board members, nor any time limit for how long a Board member can serve on the Board of Directors. For detailed information on Board members, see the Group's website and page 81.

The role of the Chairman of the Board

Apart from leading the Board of Directors' work, the Chairman of the Board of Beijer Electronics continuously monitors progress by maintaining ongoing contact with the Chief Executive Officer on strategic matters. The Chairman of the Board represents the Group on ownership-related matters.

The Board of Directors' working methods

The Board of Directors' work conforms to a yearly plan. Decisions

are taken by the Board after an open discussion led by the Chairman. The Chief Financial Officer of Beijer Electronics, also Compliance Officer for the Code of Corporate Governance, serves as Secretary of the Board of Directors. Apart from the Board meeting following election, which is held coincident with the AGM, the Board normally meets five times per year (scheduled meetings). Extra meetings are convened when necessary. The Board of Directors' and Chief Executive Officer's rules of procedure are adopted yearly at the Board meeting following election. Each meeting follows an agenda, with supporting documentation provided to Board members in good time before each Board meeting.

The Annual Accounts, proposed appropriation of profits and the financial statement are considered each financial year in the first scheduled Board meeting of the financial year. Coincident with this process, the company's Auditors submit a report to the Audit Committee regarding the Auditors' observations and judgments of the audit conducted. The Chief Executive Officer is assigned to submit Interim Reports approved by the Board of Directors at scheduled meetings later in the financial year. Each scheduled meeting also includes several other matters on its agenda, including a report on the current results of operations.

The Board of Directors appraises its own work and that of the Chief Executive Officer on an ongoing basis. In addition, a formal appraisal is conducted led by the Chairman of the Board. In 2016, the appraisal was completed in the form of a survey presented to each Board member. Board members sent their responses to an external party, independent of the Board of Directors and the company, who collated the answers. The appraisal was then presented to the Chairman and to other Board members in connection with the Board meeting in January 2017.

Work of the Board in 2016

In the financial year 2016, the Board of Directors held eight (8) Board meetings in addition to the Board meeting following election. Extensive contact was maintained between the company, the Chairman of the Board and other members between Board meetings. The company's Auditors attended the first Board meeting of the year, reporting their observations on the Group's internal controls and financial statement. The Auditors met the Board of Directors' Audit Committee on two other occasions.

Remuneration Committee

The Remuneration Committee is appointed yearly by the Board of Directors. The Remuneration Committee consults on the Board of Directors' decisions on remuneration of the Chief Executive Officer, decides on remuneration to other senior executives and consults on proposals for potential incentive plans. The Remuneration Committee collects decision support data and views from other Board members, the CEO and CFO. The Committee also collects comparative decision support data externally. In 2016, the members of the Remuneration Committee were Anders Ilstam and Johan Wester, with Anders Ilstam acting as Chairman. In the financial year 2016, the Remuneration Committee held one (1) meeting. Remuneration

Work of the Board of Directors in 2016

			Attendance			Affiliation to
Ordinary Board member	Elected Yr.	Position	Audit Committee	Remuneration Committee	Board Meetings	Fees, SEK	Beijer Electronics	Major Share holders
Anders Ilstam	2002	Chairman		1/1	9/9	550,000	no	no
Bo Elisson	2013	Member			9/9	225,000	no	no
Ulrika Hagdahl	2006	Member			9/9	225,000	no	no
Maria Khorsand	2010	Member	2/2		9/9	255,000	no	no
Christer Öjdemark	2013	Member	2/2		9/9	275,000	no	no
Johan Wester	2015	Member		1/1	9/9	255,000	no	yes

Board members Ulrika Hagdahl and Bo Elisson received 375,000 SEK each for consulting assignments in subsidiary Westermo. Board members Anders Ilstam and Christer Öjdemark received 50,000 SEK each for committee work included in the above table. Board members Maria Khorsand and Johan Wester received 30,000 SEK each for committee work included in the table above.

for committee work was paid in accordance with the resolution of the Annual General Meeting 2016. Guidelines for remunerating senior executives for the financial year 2016 will be approved at the AGM in April.

Audit Committee

The Audit Committee includes Maria Khorsand and Christer Öjdemark, with Christer Öjdemark acting as Chairman. The duty of the Committee is to analyze and consult on the company's risk management, corporate governance and internal controls, and financial reporting. The Committee maintained contact with the company's Auditors to consult on matters including the orientation and scope of audit work. The Audit Committee has adopted guidelines for other services apart from auditing the company can purchase from the company's auditors. The complete guidelines are available at the company's website. Remuneration for committee work was paid in accordance with the resolution of the Annual General Meeting 2016.

Remuneration to the Board and Management in 2016

In 2016, the Chief Executive Officer of the parent company, also President of the Group, and other senior executives drew basic salary and other benefits that are reported in Note 7, page 56–57. Other senior managers mean the nine people that made up Group management in 2015 alongside the Chief Executive Officer.

Remuneration to the CEO

Apart from contracted basic salary, from the financial year 2017 onwards the Chief Executive Officer is also entitled to performancerelated pay. Performance-related pay is based on the Group's operating profit and is a maximum of six months' salary. Pension and other customary benefits are additional.

Each year, 35% of gross salary including bonus is provisioned as pension assurance for the CEO. This pension is defined contribution and becomes payable at age 65. According to agreement, the CEO has a notice period from the company's side of 18 months, which cannot be claimed for termination initiated by the CEO. The notice period from the Chief Executive Officer's side is six months. No other remuneration upon termination has been agreed.

Remuneration to other Senior Executives

Other senior executives have basic salary with a performance-related component. The performance-related component is based partly on the Group's and partly on each business area's operating profit and sales growth. Yearly performance-related pay is a maximum of six months' salary. Other senior executives have defined contribution pension agreements on market terms. Other customary benefits are additional. Maximum notice periods of 12 months for termination from the company's side have been agreed for other senior executives. This applies to all apart from one, who has a six month notice period and nine months' severance pay on termination from the company's side.

Incentive plans

The purpose of incentive plans is to promote senior management's commitment to the Group's progress and thus increase value for the Group's shareholders. In previous years, the Group offered senior executives the opportunity to acquire warrants, which have now been terminated. No new incentive schemes were introduced in 2016.

Directors' fees

The Directors' fees resolved by the AGM in April 2016 were 1,625,000 (1,625,000) SEK in 2016 and are allocated according to the table on page 57.

Management and corporate structure

The Chief Executive Officer is responsible for Beijer Electronics' ongoing administration, which covers all matters that are not reserved for the Board and administered by management. Instructions approved by the Board of Directors formalize the Chief Executive Officer's authorization to make decisions regarding investments, company acquisitions and divestments and finance matters.

Group management currently consists of the Chief Executive Officer, the CEO of Westermo, two Regional Directors, the Operations Director, the CFO, the HR Director. The CEO also acts as business area manager for the largest business area, IAS.

Group management meetings are held regularly to discuss the Group's strategic and operational progress and to monitor results of operations. For more information on senior executives, see the Group's website and pages 86-87.

In 2016, Westermo reported to a dedicated Executive Board for the company which includes two members of Beijer Electronics' Board of Directors and the CEO as Chairman. Bo Elisson, from Beijer Electronics' Board of Directors, will be replaced by Joakim Laurén, CFO of the Beijer Electronics Group, in 2017.

Business areas

Beijer Electronics' operations are organized into two business areas. Business area managers are members of Group management and are responsible for the Income Statement and Balance Sheet of their respective areas. In terms of external reporting, the Group's operations are divided into two business areas, IAS and IDC. From the financial year 2017 onwards, the Group will change its segment reporting. The IAS business area will be reported as the Beijer Electronics business entity. The IDC business area will be divided into two business entities under the Westermo and Korenix brands.

Internal control over financial reporting

In tandem with adopting the Interim Report for the third quarter and annual Financial Statement, the company's Auditors report their observations from auditing and evaluating the company's internal controls. The company's Auditors participate in Board meetings and special meetings with the Audit Committee, which enables Board members to ensure that internal control is satisfactory and that reporting to the Board is effective.

According to the Swedish Companies Act, the Board is responsible for internal controls. This responsibility includes issuing annual financial reports. The Board of Directors receives the reports and sets standards on their content and presentation to ensure quality each year. This implies that financial reporting should be expedient by applying applicable accounting standards and other requirements of listed companies. The CEO presents a financial report to the Board of Directors at least once monthly, presented in a manner specified by the Board of Directors in advance. This enables the Board of Directors to monitor any divergences in terms of reporting or content.

Control environment, risk assessment and control structures

Beijer Electronics structures and organizes its operating activities proceeding from decentralized responsibility for profitability. The base of internal controls in a decentralized operation consists of a well-secured process intended to define targets and strategies for each business.

Defined decision-paths, authorizations and responsibilities are communicated through internal instructions, regulations and policies adopted by the Board of Directors. The Group's primary financial controlling documents are the overarching 'Corporate Manual', a reporting manual and audit manual, including instructions for each financial statement. Beijer Electronics has an established control structure to manage the risks the Board of Directors and management consider significant to internal controls regarding the Group's accounting organization.

Accounting managers at all levels play a key role in terms of integrity, skills and the ability to create the environment necessary to achieve transparent and accurate financial reporting. Another important overall

control activity is the monthly update on results that is conducted via the internal reporting system, and analyzed and subject to comment in reports to the Board. Monitoring the results of operations includes reconciliation against previously determined targets, the most recent forecast and monitoring established key financial ratios.

In accordance with the Code's stipulations, the Board of Directors has taken a view on the need for a dedicated internal audit function, and concluded that at present, there is no need to create such resources within the Beijer Electronics Group. Coincident with its evaluation of this need, the Board of Directors considered the Group's size, risk outlook and the control functions already established within the Group, which include regular internal audits operated by the central finance function.

Financial reporting and information

Beijer Electronics' communication processes are intended to supply the market with relevant, reliable, accurate and up-to-date information on the Group's progress and financial position.

Financial information is regularly submitted in the form of financial statements, interim reports, annual reports and press releases on important news and events that can materially affect the share price. Presentations and teleconferences for financial analysts, investors and the media are held on the day of publication of annual and quarterly reports. All reports, presentations and press releases are published on the Group's website and intranet.

Insider policy

Beijer Electronics' Board of Directors has adopted an insider policy supplementing Swedish market abuse legislation. This policy states the rules on registering insiders, their holdings and reporting, alerts and prohibition of trading in financial instruments. The complete insider policy is available from the company's website.

Code of Conduct

Beijer Electronics' operations should be conducted with high standards of integrity and ethics. The Group has adopted a number of values that function as a framework for employees and promote good judgment and consistent decision-making. The company's Board of Directors approves the Code of Conduct each year for the Group's operations, which also includes guidelines for the Group's behavior in society in order to ensure its long-term value-creating ability. The document is available in full on the Group's website.

Values

Beijer Electronics' values – Commitment, Drive and Trust – constitute a long-term commitment linked to its business concept, goals and strategy, guiding employees in daily activities. 'Commitment' reflects commitment to maximize customer benefit and closeness in relationships with customers, collaboration partners and employees. 'Drive' illustrates proactivity and a go-ahead approach in attitudes and technology development. 'Trust' represents honesty and conduct that inspires trust.

Board of Directors' certification

The Board of Directors and Chief Executive Officer certify that the Consolidated Accounts have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU, and give a true and fair view of the Group's financial position and results of operations. The parent company's Annual Accounts have been prepared in accordance with generally accepted accounting principles in Sweden and give a true and fair view of the parent company's financial position and results of operations.

The Directors' Report for the Group and parent company give a true and fair view of the progress of the Group's and parent company's operations, financial position and results of operations, and states the significant risks and uncertainty factors affecting the parent company and companies within the Group.

The Consolidated Income Statement and Consolidated Balance Sheet and the Parent Company Income Statement and Parent Company Balance Sheet will be subject to adoption at the AGM on April 27, 2017.

Malmö, Sweden, March 21, 2017

Anders Ilstam Chairman

Christer Öjdemark Maria Khorsand

Bo Elisson Ulrika Hagdahl Johan Wester

Per Samuelsson President and CEO

Our Audit Report was presented on March 23, 2017 PricewaterhouseCoopers AB

Magnus Jönsson Authorized Public Accountant

Board of Directors

Bo Elisson

Gothenburg, Sweden. Born in 1950. Board member since 2013.

Principal occupation: Directorships. Other assignments: Chairman of Empower Oy in Finland.

Education: M.Sc. (Eng.), Chalmers Institute of Technology.

Work experience: Extensive experience from ASEA/ABB, including as Business Area Manager of ABB Robotics. Previously Chairman of Flexlink AB and ADB Airfield Solutions in Belgium. Holdings in Beijer Electronics AB: 20,000 shares.

Maria Khorsand

Stockholm, Sweden. Born in 1957. Board member since 2010.

Principal occupation: CEO of SOS Alarm Sverige AB.

Other assignments: Board member of SLU Sveriges Lantbruksuniversitet.

Education: M.Sc. Computer Science. Work experience: Various directorships at SP Sveriges Tekniska Forsknings-

institut, Ericsson, OMX Technology and Dell Sweden AB. Holdings in Beijer Electronics AB: No.

Ulrika Hagdahl

Stockholm, Sweden. Born in 1962. Board member since 2006.

Principal occupation: Directorships. Other assignments: Board member of HiQ AB and Image Systems AB. Education: M.Sc. (Eng.), Royal Institute of Technology, Stockholm.

Work experience: Founder of Orc Software AB, formerly CEO and Board member.

Holdings in Beijer Electronics AB: 30,000 shares through companies.

Christer Öjdemark

Linköping, Sweden. Born in 1951. Board member since 2013.

Principal occupation: Directorships. Other assignments: Board member of Envac AB.

Education: M.Sc., University of Linköping. Work experience: CEO of Envac AB. Active for many years in companies including BT Industries and Danfoss. Holdings in Beijer Electronics AB: 15,000 shares.

Johan Wester

Gothenburg, Sweden. Born in 1966. Board member since 2015.

Principal occupation: Investment Director of Stena Adactum.

Other assignments: Chairman of Captum Group AB. Board member of Midsona, S-Invest and Stena Renewable Energy.

Education: M.Sc. (Eng.), Industrial Economics, Chalmers Institute of Technology.

Work experience: Arthur D. Little, Accenture and Flexlink, mainly in supply chain management, strategy and business development. Holdings in Beijer Electronics AB:

950 shares through family.

Anders Ilstam

Halmstad, Sweden. Born in 1941. Chairman of the Board since 2005. Board member since 2002.

Principal occupation: Directorships.

Other assignments: Chairman of the Board of Svedbergs AB, Grimaldi Industri AB and 3nine AB. Board member of Scandinavian Enviro Systems AB, Cycleurope AB and Plockmatic AB. Education: Engineer.

Work experience: Former Deputy CEO of Sandvik AB, CEO of Sandvik Mining and Construction and several positions within Sandvik, the SKF Group and Beijerinvest AB.

Holdings in Beijer Electronics AB: 13,859 shares.

Auditors

PricewaterhouseCoopers AB.

Magnus Jönsson, f 1973. Authorized Public Accountant, PricewaterhouseCoopers. Auditor of Beijer Electronics AB since 2012.

Information on Board members' non-affiliation/affiliation to the company and major shareholders is in the Corporate Governance Report on page 78.

Audit Report To the general meeting of the shareholders of Beijer Electronics AB (publ),

Corporate Identity Number 556025-1851

Report on the annual accounts and consolidated accounts

Opinions

We have audited the annual accounts and consolidated accounts of Beijer Electronics AB (publ) for the year 2016 with the exception of the corporate governance report on pages 76-79. The annual accounts and consolidated accounts of the company are included on pages 34-75 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company as of 31 December 2016 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2016 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. Our opinion does not cover the corporate governance report on pages 76-79. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.

We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group.

Basis for Opinions

We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Our audit approach

Audit scope

We designed our audit by determining materiality and assessing the risks of material misstatement in the consolidated financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

We tailored our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into consideration the structure of the Group, the accounting processes and controls, and the industry in which the group operates. On this basis, we selected the companies within the group which we believed to be significant and determined the audit activities to be executed on these companies. Totally, 13 companies, to varying degrees, have been deemed as significant. These companies comprise approximately 80% of the group's external net sales. The components which are not seen to be significant have been audited by the group team on the basis of a review, and we have, prior to presenting our opinion regarding the group audit, obtained deviation reports from all companies subject to an audit according to local regulations. On the basis of this documentation we assess if any circumstances exist which should be considered in the group's financial statements. In addition the group team has, amongst other things, executed an audit of the parent company, the consolidation, the annual accounts and significant estimates and judgments. Based on the audit activities referred to above, we deem that we have received sufficient audit evidence to provide an opinion on the financial statements as a whole.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Key Audit Matters

Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters.

Key audit matter

Impairment testing of intangible assets

According to IFRS, an annual impairment test is to be made of intangible assets with indefinite useful lives. As at 31 December 2016, goodwill amounted to MSEK 519, which is seen in Note 12 where the allocation of goodwill and other intangible assets is presented.

Company management base their impairment assessment on a calculation of the discounted cash flow for IAS and IDC, which are the cash generating units in which goodwill is reported. In the reported goodwill amount, MSEK 237 refers to IAS, and the remaining amount to IDC. During 2016, it was decided that a restructuring program within IAS would be undertaken to improve profitability.

The impairment test is based on judgments and assumptions regarding the future cash flows and circumstances which are complex and contain a high level of judgments of company management. In Note 1 section C (i) and Note 12, information is provided as to how the management has undertaken their assessments, and important assumptions regarding a sustainable growth rate and capital costs (WACC) and sensitivity analyses are reported.

Company management has not identified any impairment for 2016.

How our audit addressed the Key audit matter

In our audit, we focused on determining if there is a risk that there exists an impairment requirement regarding goodwill. This primarily refers to the fact that the company's budget and business plan for IAS presumes that the action plan will create the desired effects to reverse the negative earnings trend.

In our audit, we have reconciled important assumptions against the company's budget and strategic plan whereby we also take a position as regards the company management's assumptions and judgements, including the capacity to implement the determined restructuring program within IAS. This has been done through an analysis of the degree to which previous years' assumptions have been achieved, and we have challenged company management's assumptions referring to those aspects having the greatest impact on the write-down assessment, such as growth, profit margins and cost of capital (WACC).

Through our own sensitivity analyses, we have tested the safety margin for the respective cash generating units and, based on these tests, have assessed the risk of an impairment requirement. As a part of our audit, we have also examined the calculation model applied by management. We have also assessed the correctness of the disclosures provided in the annual report.

Based on our audit, we have not observed any significant deviations from the company management's conclusions in their assessment the requirement of a write-down.

Reporting of restructuring reserve

In the beginning of 2016, the Board of Directors determined to initiate a restructuring program for the business area, IAS, at an estimated cost of MSEK 50. During the year, payments of MSEK 30 were made referring to costs for personnel and premises, and to production effectivity improvements to achieve the desired future savings. The remaining reserve as at 31 December 2016 amounts to MSEK 20.

A restructuring reserve is, in nature, based on judgments and assumptions regarding the future outflow of liquidity and in Note 1 section C (iv) and Note 26 information is provided on the accounting assumptions and assessments.

Valuation of deferred tax assets

At the end of the financial year, the group had deferred tax assets of MSEK 47 of which MSEK 20 were related to loss carry forwards. These loss carry forwards refer, primarily, to the group's Swedish and German operations. According to Note 24, there are other loss carry forwards which have not been considered referring to cases in which there is uncertainty as regards the fiscal value that can be deducted.

According to IFRS, a regular assessment is to be made of the probability of these deficits being able to be utilised against future fiscal surpluses. We deem that this area is very important in our audit due to the high degree of judgment associated with the valuation of deferred tax assets.

Our audit has primarily focused on the assessment of the fiscal deficits in Sweden and Germany where the accumulated loss carry forwards are the In our audit of the accounting of the restructuring reserve we have included a combination of analytical procedures and detailed testing to ensure that the reported restructuring reserve is sufficient to cover actual assumptions and commitments.

In our detailed testing we have also tested to determine if the costs which have reduced the reserve during the year have been items attributable to the restructuring program.

For the remaining reserve of MSEK 20, we have assessed management's assumptions and cost calculations. The assessment has been based on available information and historical outcome. We have also assessed the completeness and correctness of the disclosures included in the annual report regarding the restructuring program. Our audit has not resulted in the identification of any significant deviations.

largest. We have challenged company management's assessments and have examined the documentation providing the basis for these assessment. An analysis has taken place of the results generated during the year in relation to the future surplus which can be required in order that capitalised loss carry forwards can be utilised. Discussions have also taken place regarding changes in local tax regulations. In accordance with Swedish tax rules, to which the majority of the capitalised loss carry forwards are subject, there is, currently, no determined useful life for loss carry forwards. In addition, we have assessed the completeness and correctness of the disclosures found in the annual report. Based on the executed audit, we have noted no significant deviations from the company management's conclusions as regards their assessment of the valuation of deferred tax assets.

Other Information than the annual accounts and consolidated accounts

This document also contains other information than the annual accounts and consolidated accounts and is found on pages 34-75. The Board of Directors and the Managing Director are responsible for this other information.

Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information.

In connection with our audit of the annual accounts and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated.

If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company's and the group's ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intends to liquidate the company, to cease operations, or has no realistic alternative but to do so.

The Audit Committee shall, without prejudice to the Board of Director's responsibilities and tasks in general, among other things oversee the company's financial reporting process.

Auditor's responsibility

Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of the company's internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director.

• conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company's and the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.

• obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinions.

We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified.

We must also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in the auditor's report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Opinions

In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Beijer Electronics AB (publ) for the year 2016 and the proposed appropriations of the company's profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Basis for Opinions

We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors is responsible for the proposal for appropriations of the company's profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's and the group's type of operations, size and risks place on the size of the parent company's and the group's equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company's organization and the administration of the company's affairs. This includes among other things continuous assessment of the company's and the group's financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company's financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors' guidelines and instructions and among other matters take measures that are necessary to fulfil the company's accounting in accordance with law and handle the management of assets in a reassuring manner.

Auditor's responsibility

Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect:

• has undertaken any action or been guilty of any omission which can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed appropriations of the company's profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of t he company's profit or loss are not in accordance with the Companies Act.

As part of an audit in accordance with generally accepted auditing standards in Sweden we exercise professional judgment and maintain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations of the company's profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company's situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors' proposed appropriations of the company's profit or loss, we examined The Board of Director's Directors' reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act.

The auditor's examination of the corporate governance statement

The Board of Directors is responsible for that the corporate governance statement on pages 76-79 has been prepared in accordance with the Annual Accounts Act.

Our examination of the corporate governance statement is conducted in accordance with FAR´s auditing standard RevU 16 The auditor´s examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions.

A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2-6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual accounts and consolidated accounts and are in accordance with the Annual Accounts Act.

Malmö, 23 March 2017 PricewaterhouseCoopers AB

Magnus Jönsson Authorised Public Accountant

Senior Executives

Group

Left to right:

Joakim Laurén Born in 1963 CFO.

With Beijer Electronics since 2016. Holdings in Beijer Electronics AB: 8,000 shares.

Per Samuelsson Born in 1957 President and CEO.

With Beijer Electronics since 2015.

Holdings in Beijer Electronics AB: 20,000 shares, private and through company.

Other assignments: Chairman of BTJ Sverige AB and Directorships in Aniagra and Priveq.

Tim Webster Born in 1967 Senior VP Human Resources. With Beijer Electronics since 2011. Holdings in Beijer Electronics AB: 1,100 shares.

Beijer Electronics

Top left to right: Berndt Köhring Born in 1965 Senior VP Asia. With Beijer Electronics since 2011. Holdings in Beijer Electronics AB: 1,430 shares.

Joakim Laurén See above.

Tim Webster See above.

Bottom left to right:

Sven Knutsson Born in 1964 Senior VP Global Operations. With Beijer Electronics since 2013. Holdings in Beijer Electronics AB: 5,000 shares.

Per Samuelsson See above.

Stefan Lager Born in 1962 Senior VP Europe and Americas. With Beijer Electronics since 2016. Holdings in Beijer Electronics AB: 5,027 shares.

Former executives

Joakim Nideborn, Acting CFO, resigned in February 2016. Henrik Dalby Damm, VP Sales Europe, resigned in May 2016. Mark Hendel, VP Americas, resigned in March 2016. Roger Kroon, PM & Marketing Manager, resigned in August 2016.

Bottom left to right: Alan Bollard Born in 1967 VP International Sales and Marketing. With Westermo since 1995.

Lars-Ola Lundkvist Born in 1961 CEO. With Westermo since 2007. Hodlings in Beijer Electronics AB: 12,023 shares.

Pierre Öberg Born in 1970 VP R&D. With Westermo since 2006.

Bottom left to right:

Sophia Yu Born in 1972 Sr. Director Sales Dept/ International Business. With Korenix since 2010.

Michelle Yu Born in 1974 Director APAC Human Resources and Administration. With Korenix since 2014.

Tammy Huang Born in 1974 Director Logistics. With Korenix since 2014.

Westermo

Top left to right: Kari Parkila Born in 1964 VP Production. With Westermo since 2007.

Anne-Li Hallblad Born in 1969 HR Manager. With Westermo since 2007.

Peter Berglund Born in 1970 Finance Manager. With Westermo since 2009.

Jenny Sjödal Born in 1973 VP Sales. With Westermo since 2016.

Erik Danielsson Born in 1970 VP Global Industries. With Westermo since 2013.

Korenix

Top left to right: Richard Fan Born in 1967 VP Product Management. With Korenix since 2006.

Cindy Hung Born in 1970 Director Marketing. With Korenix since 2005.

Wesley Chen Born in 1960 General Manager. With Korenix since 2017.

Mike Liu Born in 1971 VP R&D. With Korenix since 2005.

Orwell Hsieh Born in 1974 VP Wireless Product Management/Product Quality & Service Center. With Korenix since 2007.

Five-year summary

SEK 000	2016	2015	2014	2013	2012
Income Statement
Net sales	1,121,509	1,374,575	1,401,578	1,376,187	1,367,163
Other operating revenue and operating expenses*	1,714	9,656	40,579	1,509	-2,423
Operating expenses**	-1,162,578	-1,332,031	-1,328,545	-1,290,329	-1,265,200
Operating profit	-39,355	52,200	113,612	87,367	99,540
Net financial income/expense	-84,844	-8,860	-16,831	-15,493	-26,419
Profit before tax	-124,199	43,340	96,781	71,874	73,121
Estimated tax	-1,914	-19,523	-34,090	-27,508	-19,765
Net profit	-126,113	23,817	62,691	44,366	53,356
Attributable to parent company shareholders	-126,061	23,957	61,725	44,218	49,939
Attributable to minority interests	-52	-140	966	148	3,417
*of which non-recurring items			32,936
**of which non-recurring items	-50,000	-7,325	-16,662	-5,633
	2016	2015	2014	2013	2012

Balance Sheet
Assets
Fixed assets	899,696	909,674	894,763	850,863	776,692
Current assets	423,968	426,694	444,865	458,020	518,834
Cash and cash equivalents and short-term investments	107,228	116,636	156,842	147,926	128,469
Total assets	1,430,892	1,453,004	1,496,470	1,456,809	1,423,995
Equity and liabilities
Equity attributable to parent company shareholders	415,389	520,963	496,531	391,363	384,400
Non-controlling interest	5,773	5,977	6,356	4,800	21,316
Long-term liabilities	514,939	530,963	504,430	544,766	545,613
Current liabilities	494,791	395,101	489,153	515,880	472,666
Total equity and liabilities	1,430,892	1,453,004	1,496,470	1,456,809	1,423,995
Of which interest-bearing liabilities	689,126	609,453	655,597	707,776	650,091
Key Financial Ratios
Operating margin, %	-3.5	3.8	8.1	6.3	7.3
Operating margin before non-recurring items, %	0.9	4.3	6.9	6.8	7.3
Profit margin, %	-11.2	1.7	4.5	3.2	3.9
Equity ratio, %	29.4	36.3	33.6	27.2	28.5
Equity per share, SEK a	21.8	27.3	26.0	20.5	20.2
Earnings per share, SEK a	-6.61	1.26	3.24	2.32	2.62
Return on equity after tax, %	-26.6	4.6	13.9	11.1	13.0
Return on capital employed, %	-3.2	4.8	10.3	8.8	9.6
Return on net operating assets, %	-5.8	7.4	17.7	14.0	15.1

a Calculated on the basis of total equity attributable to parent company shareholders.

	2016	2015	2014	2013	2012
Cash Flow Statement
Cash flow from operating activities before change in working capital	12,673	78,676	115,582	115,803	93,331
Change in working capital	-3,308	5,983	21,063	92,107	6,447
Cash flow from investing activities	-74,767	-79,965	-60,093	-140,871	-49,778
Cash flow from financing activities	72,143	-23,246	-56,687	-20,187	-53,421
Dividend paid	-23,834	-23,834	-23,834	-23,668	-43,503
Change in cash and
cash equivalents	-17,093	-42,386	-3,969	23,184	-46,924
Cash and cash equivalents at beginning of year	116,636	156,842	147,926	128,469	178,258
Exchange rate difference in cash and cash equivalents	7,685	2,180	12,885	-3,727	-2,865
Cash and cash equivalents at end of year	107,228	116,636	156,842	147,926	128,469

The Beijer Electronics share

Beijer Electronics has been quoted on NASDAQ OMX Nordic Stockholm Small Cap List since June 2000. It has the ticker BELE. A trading lot is 300 shares.

Share capital

Beijer Electronics' share capital is 6,355,862 SEK divided between 19,067,586 shares as of December 31, 2016. The minimum share capital is 2,000,000 SEK, and the maximum is 8,000,000 SEK. Each share has a quotient value of 0.33 SEK. All shares have one vote and possess equal rights to participation in the company's assets and profits.

Share price and turnover

In terms of bid price, the share price was 40.90 SEK on December 30, 2016, against 54.50 SEK at year-end 2015, implying a decrease of 25% in the year. In the same period, the Stockholm Stock Exchange's broad-based index OMXS increased by 5.8%. The Beijer Electronics share traded at a high of 57.50 SEK and a low of 34 SEK in the year. Share turnover was 1.5 million shares, or 8% of the total number of shares. In value terms, share turnover was 70 MSEK.

Earnings per share

Earnings per share after tax was -6.61 SEK (1.26).

Dividend

The Board of Directors proposes a dividend of 0 SEK (1.25) for the financial year 2016. Dividends are 0% (99) of profit after tax. The dividend is 0% (4.6) of equity per share. The proposed dividends imply a dividend yield of 0% (2.3) as of the closing price at yearend 2016.

Shareholder Categories, Share of Equity

Source: Euroclear

Mutual fund companies Insurance companies and pension funds Other organizations

• Other legal entities Foreign shareholders
• Swedish private investors
• Other financial
• companies

Share Data, three years

	2016	2015	2014
Earnings per share, SEK a	-6.61	1.26	3.24
Dividend, SEK	0	1.25	1.25
Pay-out ratio, %	0	99	39
Equity per share, SEK	21.8	27.3	26.0
Return on equity, %	-26.6	4.6	13.9
Closing price, SEK	40.90	54.50	52.00
No. of shares, million	19.1	19.1	19.1
Market cap., MSEK	780	1 039	992

a The amount for 2016 is proposed dividend.

Ownership by Size of Shareholdings as of December 30, 2016

Source: Euroclear
Holding	No. of Shareholders	No. of Shares	Holding, %	Votes, %	Market Value, SEK 000
1–500	2,338	343,474	1.80	1.80	14,048
501–1 000	454	348,155	1.83	1.83	14,240
1 001–5 000	511	1,142,000	5.99	5.99	46,708
5 001–10 000	76	561,521	2.94	2.94	22,966
10 001–15 000	27	335,784	1.76	1.76	13,734
15 001–20 000	10	178,016	0.93	0.93	7,281
20 001–	35	16,158,636	84.74	84.74	660,888
Summa	3,451	19,067,586	100.00	100.00	779,864

Stock Index

Shareholders as of December 30, 2016

Source: Euroclear

	No. of Shares and Votes	Propor tion, %
Stena Sessan Rederi AB	5,680,116	29.79
Lannebo Fonder	2,968,583	15.57
SEB Fonder	2,618,027	13.73
Fjärde AP-fonden	1,153,528	6.05
Nordea Investment Funds	608,405	3.19
T. Bjurman, family holdings and companies	423,320	2.22
Didner & Gerge Fonder Aktiebolag	400,250	2.10
Humle Kapitalförvaltning AB	311,557	1.63
Bengt Bergström	236,000	1.24
AMF Försäkring och Fonder	213,046	1.12
Total shareholders with a holding of more than 210,000 shares, 10	14,612,832	76.64
Other shareholders, 3,453	4,454,754	23.36
Total, 3,463	19,067,586	100.00

Definitions

Technical Definitions

Automation

Automation means products and solutions that replace manual work and are intended to run, optimize and control various types of industrial process.

Control system

See also PLC system. A programmable system to control and monitor various types of machinery and process.

Drive system

Collective term for various types of motor control, such as frequency inverters, soft starters and servo systems.

Ethernet switch

Interconnects different segments of an Ethernet-based network.

Frequency inverter

An electronic motor control that transforms fixed network frequency and voltage to continuous variables, to achieve benefits including energy savings and reduced motor maintenance costs.

HMI

Human machine interface. See also operator panel. Collective term for products or systems developed to simplify the work of operators in monitoring and controlling machines or processes.

Industrial data communication

Industrial data communication is utilized where there are high standards for secure data transmission, on infrastructure projects, for example.

IP-based data communication

Communication of data packets via wired or wireless Internet connections.

IPC

Industrial PC. Collective term for PC systems built to cope with especially harsh environments or for applications where high reliability is necessary.

IoT

The Internet of Things (IoT) is the collective name for physical units connected to networks, vehicles (also known as connected units or smart units), buildings and other objects containing electronics, software, sensors, actuators and network connectivity that enable these objects to gather and exchange data.

Mobile data terminal

Operator panel with a touchscreen, and sometimes buttons, specifically developed for use in vehicles, whose environments set demanding standards on equipment. Installed in the vehicle or used as a handheld device.

OEM

Batch-producing machinery manufacturers.

Operator panel

Panel, see also HMI. A touchscreen or keyboard panel allowing operators to monitor and control the status of machinery or processes. Such panels are often co-located with equipment where operatives work.

PLC systems

Programmable logic controllers, also known as control systems. Programmable systems for controlling and monitoring various types of machinery and process. The size of these systems varies, with the larger systems being modular, with the facility for simple modification for various needs.

Soft control

Software installed on a computer or operator panel, for example, enabling it to function as a PLC system.

Soft motion

Software installed in a computer or operator panel for example to control the speed and position of one or more bus-connected motors.

System integrator

A company with specialist competence in one or more sectors that provides services for automating and electrifying industrial facilities, such as panel builders and machinery builders.

Financial Definitions

Capital employed

Equity and interest-bearing liabilities.

Development expenditure

Expenditure related to product development, such as personnel costs and consulting costs, including expenditure capitalized as intangible assets.

Earnings per share

Net profit attributable to parent company shareholders divided by the number of shares at year-end.

EBITDA

Earnings Before Interest, Taxes, Depreciations and Amortizations.

Equity per share

Equity attributable to parent company shareholders divided by the number of shares.

Equity ratio

Equity in relation to total assets.

Operating capital

Total assets less cash, cash equivalents and interest-bearing liabilities

Operating margin

Operating profit in relation to net sales.

Net debt

Interest-bearing liabilities less cash and cash equivalents.

Profit margin

Net profit in relation to net sales.

Return on capital employed

Profit before tax plus financial expenses in relation to average capital employed.

Return on equity after tax

Net profit in relation to average equity.

Return on net operating assets

Operating profit in relation to average net operating assets.

Production: Beijer Electronics AB Script: Beijer Electronics AB and JLC Finanskonsult AB Translation: Turner & Turner Images: Apelöga et al. Printing: Exakta, ISO 14001 Certified

Welcome to the Annual General Meeting in Beijer Electronics AB (publ)

Shareholders of Beijer Electronics AB (publ) are hereby invited to the Annual General Meeting (AGM) to be held at 4 p.m. on Thursday, April 27, 2017 at Malmö Börshus, Skeppsbron 2, Malmö, Sweden.

Entitlement to Participate in the AGM

For entitlement to participate in the AGM, shareholders should:

• First, be included in the share register maintained by Euroclear Sweden AB by no later than Wednesday, April 21, 2017;
• Second, notify the company of their intention to participate, and assistants they may wish to bring, by no later than Friday, April 21, 2017.

Notification

Notifications, which should state the shareholders' name, personal or corporate identity number, shareholding, address, telephone number and potential proxies/assistants can be made via the company's website, www.beijerelectronics.com/ir, by telephone on +46 (0)40 35 86 44, by e-mail to arsstamma@beijerelectronics.com or by mail to Annika Johnsson, Beijer Electronics AB (publ), Box 426, 201 24 Malmö, Sweden. (Please mark the envelope 'AGM').

If participation is through power of attorney, a dated and signed original should be sent to the company. Representatives of legal entities should present certificates of incorporation or equivalent documentation stating authorized signatories. Power of attorney forms are available on the company's website and will be mailed to shareholders on request. In order to participate at the Meeting, shareholders with nominee-registered holdings must temporarily register their shares in their own name. Such reregistration must have been effected through Euroclear Sweden AB by no later than April 21, 2017.

Dividend

The Board of Directors will be proposing to the AGM 2017 that no dividend be paid and that profit at the disposal of the AGM be carried forward.

Financial Information 2017

April 27, 2017 AGM, 4 p.m. at Malmö Börshus
April 27, 2017Three-month Interim Report
July 14, 2017Six-month Interim Report
October 25, 2017Nine-month Interim Report

All financial information is uploaded to Beijer Electronics' website www.beijerelectronics.com/ir, where an e-mail subscription list for press releases and financial reports is also available.

Questions relating to the Beijer Electronics Group should be addressed to Executive Assistant Annika Johnsson on tel +46 (0) 40 35 86 55, or via e-mail: info@beijerelectronics.com.

Invitation to AGM

AUSTRALIA Sydney

AUSTRIA Vienna

BELGIUM Hellebecq

CHINA Beijing Shanghai

Shenzhen

DENMARK Roskilde

FINLAND Klaukkala

FRANCE

Champlan Paris

GERMANY

Nürtingen Waghäusel

INDIA Pune

KOREA Seoul

NORWAY Oslo

SINGAPORE Singapore

SWEDEN

Gothenburg Jönköping Malmö Stockholm Stora Sundby Västerås

SWITZERLAND

Dietlikon

TAIWAN Taipei

TURKEY Istanbul

UNITED KINGDOM Castle Donington Southampton

USA Elgin, IL Salt Lake City, UT

Head office

Beijer Electronics AB (publ) Box 426, Stora Varvsgatan 13a 201 24 Malmö, Sweden Corp. ID no. 556025-1851 www.beijerelectronics.com | +46 40 35 86 00