Beijer Electronics Group — Audit Report / Information 2018

Jan 28, 2019

1 JANUARY – 31 DECEMBER 2018

Sustained high organic growth and improved earnings, dividend resumed for 2018

Fourth quarter

• Order intake rose by 37% to 452 MSEK (330).
• Net sales increased by 18% to 381 MSEK (323).
• EBIT up to 20.2 MSEK (3.4).
• Profit after tax increased to 12.5 MSEK (-1.0).
• Earnings per share increased to 0.44 SEK (-0.03).

Full year 2018

• Order intake rose by 27% to 1,593 MSEK (1,252).
• Net sales increased by 18% to 1,417 MSEK (1,206).
• EBIT up to 74.0 MSEK (18.0).
• Profit/loss after tax increased to 43.5 MSEK (-6.2).
• Earnings per share increased to 1.52 SEK (-0.24).
• Proposed dividend of 0.50 SEK (0).

Financial Statement for Beijer Electronics Group AB

Comments from CEO Per Samuelsson

"beijer group´s new strategy, set in 2016, is sound and generating tangible successes, as demonstrated by our financial results. For the full year 2018, order intake and sales were up by nearly 30% and 20% respectively, resulting in our EBIT quadrupling, and our loss from 2017 transforming into a positive profit after tax in 2018. This turnaround also means that we can propose to resume dividends to our shareholders.

We're satisfied with much of what has been achieved in the past years. Our adaptation—after Beijer Electronics' business with Mitsubishi Electric concluded in 2016, with the loss of yearly sales of some 300 MSEK—brought cost reductions and rationalization, offset by major product development initiatives and organizational changes. We now see that in 2018, the Group converged on its previous sales record from 2011. The Group's order intake of 1.6 billion SEK is its highest to date. Earnings trends are heading in the right direction. However, given the sales, profitability in the quarter should have been higher. This rapid growth, which is exclusively organic, beat our own challenging expectations, but has presented us with several challenges. Capacity utilization, and capacity shortages, are very significant to earnings. Even if the growth of our order intake and sales accentuated in the fourth quarter, our earnings were impacted by temporary imbalances between capacity and shipments. Nevertheless, the Group was able to improve EBIT from 3 MSEK to over 20 MSEK in the period.

The Beijer Electronics business entity provided most of the Group's earnings gains. This entity went from strength to strength in the year, with high growth and progressively improving earnings. The successes are backed by new products and solutions, as well as a more customer-oriented sales organization. This business entity's recovery and continued expansion are an important component of the Group's longterm value creation.

The Westermo business entity delivered its best year to date, with record order intake, sales and earnings in 2018. It is primarily Westermo's focused initiative on networks for trains that underpinned the successes. But its high growth—30% in fourth quarter—also triggered supply chain problems. Westermo put shipments to customers ahead of efficiency and are increasing capacity for continued growth. This resulted in unusually high costs in the short term. We estimate that these extra costs impacted Westermo's EBIT margin by 5 percentage points, or 8 MSEK in the fourth quarter. But what's important in the long term is that we were able to fulfil our commitments to customers.

In the year, the Korenix business entity focused on recovery of its operations with a partly modified strategy. Korenix is heading in the right direction, with several new deals with major, important customers. Order intake was up by 20%, and

Business entity net sales and EBIT

	Sales Quarter 4		EBIT Quarter 4		Sales Full year		EBIT Full year
MSEK	12/18	12/17	12/18	12/17	12/18	12/17	12/18	12/17
Business entity Beijer Electronics	191.5	173.2	17.3	5.4	731.4	659.1	47.4	12.5
Business entity Westermo	167.3	128.7	13.6	12.7	584.2	461.2	69.7	46.6
Business entity Korenix	25.8	24.4	-4.1	-6.1	117.8	104.2	-6.4	-9.9
Intra-group sales	-3.4	-3.7			-16.2	-18.6
Group adjustments and depreciation			-6.6	-8.6			-36.8	-31.2
BEIJER GROUP	381.2	322.6	20.2	3.4	1,417.2	1,205.9	73.9	18.0

Group order intake

The bars and left-hand scale indicate quarterly order intake. The curve and right-hand scale show rolling four quarter order intake.

Group EBIT

The bars and left-hand scale indicate quarterly order intake. The curve and right-hand scale show rolling four quarter order intake.

The bars and left-hand scale indicate quarterly order intake. The curve and right-hand scale show rolling four quarter order intake.

sales by 13% in 2018. Sales in the fourth quarter were impacted by several customer decisions to defer shipments until the first half-year 2019. This meant that Korenix had excess capacity and high expenses, and posted a MSEK 4 loss for the period.

We collaborate with some of the world's most innovative companies, and have major global demanding customers like Alfa Laval, Bombardier, Alstom and Emerson. Their repeat orders, and us securing new business customers, are evidence of our international competitiveness, and that we offer products and services that are well timed.

Our solutions bridge the interface between people and machinery. Data is captured, managed, transported, presented and analyzed in interactive and seamless processes between humans and machines. Our solutions help customers optimize their processes at different levels of their business.

Being at the leading edge and addressing customers puts challenging demands on our organization and people. I want to emphasize the importance of our people's efforts and competences especially. Individual professional performances, backed by mutual support and access to our corporate resources, has generated our results and creates our new platform for continued expansion.

In 2018, the Group spent over 160 MSEK on product development, which is enhancing our offering to the market. In 2018, Westermo decided to improve its current strategy for the coming years, based on our successes in the Rail segment and the business entity's current product range. This involves initiatives in network solutions targeting the Rail trackside and Power distribution segments. Westermo already has some sales in these segments, but to address the whole market, investments and upgrades are necessary. In time, we expect this initiative to make a major contribution to the Group's and business entity's growth, sales and earnings.

Within Beijer Electronics, we are launching our new Fast track to the cloud solution with BoX2 in 2019. This solution integrates software and hardware, and is an Industrial Internet of Things (IIoT) application, offering easy connection to existing automation equipment. BoX2 and associated services will be marketed through a Software as a Service (SaaS) revenue model, with hardware invoiced on delivery and software with a subscription fee.

The Group's new strategy from 2016 has more than achieved our target of minimum yearly growth of 7%. We are converging on our target of a 10% EBIT margin. These new initiatives are investments to safeguard continued high organic growth, and also bring an opportunity to upgrade the Group's growth and EBIT margin targets.

We've started the new year with a healthy order book. The capacity problems that occurred in the fourth quarter are still being addressed, and will have a progressive impact. For the full year 2019, we think the Group will still be able to increase sales and earnings compared to the figures for 2018."

The Group in the fourth quarter

The Group's order intake kept progressing strongly, with a 37% upturn to 452.0 MSEK (329.5) in the fourth quarter. All the Group's three business entities reported increased order growth—Beijer Electronics by 35%, Westermo by 37% and Korenix by 51%. Adjusted for currency effects, the Group's order intake rose by 33%.

The Group's sales increased by 18% to 381.2 MSEK (322.6). Growth is broad based and fairly evenly allocated between

Order intake of over 450 MSEK for the quarter is a really good level.

different markets, regions, sectors and segments. The increase was broad based, and divided fairly evenly between different markets and regions. Adjusted for currency effects, sales were up by 14%.

The Group's EBITDA rose by 59% to 40.7 MSEK (25.6). Depreciation and amortization were 20.5 MSEK (22.2). EBIT amounted to 20.2 MSEK (3.4), equating to an EBIT margin of 5.3% (1.0). The earnings improvement is due to higher sales volumes, a wider gross margin, good cost control, and positive currency effects of some 5 MSEK. Total development expenditure amounted to 45.2 MSEK (38.8), corresponding to 11.9% (12.0) of Group sales.

Profit before tax increased to 16.4 MSEK (-1.0). Net financial income/expense was -3.8 MSEK (-4.4). The improved net financial income/expense is due to the rights issue executed in 2017 and better financing terms. Profit after estimated tax was 12.5 MSEK (-1.0). Earnings per share after estimated tax amounted to 0.44 SEK (-0.03).

Full year 2018

Order intake increased by 27% to 1,593.2 MSEK (1,251.6) for the full year. Currency adjusted, order intake increased by 25%. Sales rose by 18% to 1,417.2 MSEK (1,205.9). Adjusted for currency effects, sales increased by 15%.

The Group's EBITDA was up by 67% to 150.6 MSEK (90.3). Depreciation and amortization were 76.6 MSEK (72.3). EBIT increased to 73.9 MSEK (18.0), equivalent to an EBIT margin of 5.2% (1.5). Total development expenditure was 162.7 MSEK (147.9), or 11.5% (12.3) of Group sales.

The profit/loss before tax increased to 63.0 MSEK (-3.8). Net financial income/expense was -10.9 MSEK (-21.9). Profit/ loss after estimated tax rose to 43.5 MSEK (-6.2). Earnings per share after estimated tax amounted to 1.52 SEK (-0.24).

Dividend

The Board of Directors is proposing a dividend of 0.50 SEK (0) per share for the financial year 2018.

Individual professional performances, backed by mutual support and access to our corporate resources, has generated our results.

Beijer Electronics Business entity

The Beijer Electronics Business entity accentuated its positive trend of the fourth quarter, with robust order intake growth, and sustained high organic sales growth, as well as a significant earnings improvement. Progress in the year demonstrates the viability of the new strategy, and is generating results progressively.

Growth is broad based, covering basically all markets that the business entity addresses. Overall, Europe returned the highest growth, led by major markets like France, Germany and Sweden. The US continued its positive progress, even if demand from the oil and gas sector was occasionally hesitant due to oil price fluctuations. China also reported continued positive growth. Some problems persist in Denmark, and sales there reduced. 600 700 800 900 1000 1100

The new X2 series HMIs continued their sales successes, and in the fourth quarter, represented some 40% of sales volumes. Product development continued as planned. The new Fast track to the cloud solution with BoX2 is being launched progressively through 2019. This solution integrates software and hardware, and is an IIoT application, offering easy connection to existing automation equipment. BoX2 is compatible with over 75 different PLC systems from all the major manufacturers and vendors. BoX2 and associated services will be marketed under a SaaS model, with hardware invoiced on delivery and software with a subscription fee. The bars and left-hand scale indicate quarterly net sales. 100 200 300 400

Net sales, Beijer Electronics

The curve and right-hand scale show rolling four quarter net sales.

Beijer Electronics will be phasing out a number of older HMI models in 2019. This had some effect on order intake in the fourth quarter, when customers placed unusually large orders ahead of year-end.

Basically, the business entity's new strategy is going as planned. New products with higher software content and a new, more customer-oriented sales organization are helping growth. The combination of a larger share of new proprietary products and solutions with higher margins, plus rationalization gains in production and logistics, had a positive impact on gross margin. In tandem with higher sales volumes, the effect is a rapid improvement in EBIT margin.

Fourth quarter

Order intake was up by 35% to 231.4 MSEK (171.0). Sales increased by 11% to 191.5 MSEK (173.2). EBITDA more than doubled to 25.1 MSEK (11.4). Depreciation and amortization were 7.8 MSEK (6.0). EBIT rose to 17.3 MSEK (5.4), equivalent to a margin of 9.0% (3.1). This major improvement is due to rising sales volumes and a wider gross margin, as well as good cost control.

Full year

Order intake rose by 20% to 792.0 MSEK (660.1). Sales were up by 11% to 731.4 MSEK (659.1). EBITDA increased to 75.1 MSEK (36.6). Depreciation and amortization were 27.7 MSEK (24.0). EBIT increased to 47.4 MSEK (12.5), equivalent to an EBIT margin of 6.5% (1.9).

The Beijer Electronics business entity went from strength to strength in the year, with high growth and positive profitability performance.

Westermo Business entity

The Westermo business entity reported its best year to date, setting order intake, sales and earnings records in 2018. Order intake was up by 37%, sales by 27%, and earnings by 50%.

The positive growth trend was confirmed with each quarter, and even accentuated somewhat in the fourth quarter. The upturn is broad based, basically covering all the markets that Westermo addresses. Demand in train networks remains especially high, but network products also made positive progress.

Westermo's high growth numbers clearly exceeded internal estimates, which also presented the business entity with exceptional challenges in the form of matching demand with delivery capacity. A global component shortage, bottlenecks at the supplier level and manufacture caused shortfalls in delivery capacity. But the business entity put shipments to customers ahead of efficiency. This resulted in unusually high costs in the short term, involving production at weekends and nightshifts, the injection of additional resources and higher expenses for sourcing components. These actions meant that commitments to customers could be satisfied, with shipments of nearly 170 MSEK in the fourth quarter, a 30% increase.

The additional costs had an estimated 5 percentage point impact on EBIT margin, or 8 MSEK in the fourth quarter. The extra costs include activities related to further capacity injections for 2019, which will progressively enable more cost-efficient manufacture. The strategic focus on networks for trains that began in late-2014 has been successful. With its offering, Westermo has attracted major new customers like Siemens Mobility, Alstom and Progress Rail Locomotive, as well as improving customer relations with corporations like Bombardier and Toshiba.

In 2018, Westermo decided to improve its current strategy for the period 2019-2021 based on its successes in the Rail segment and the business entity's current product range. This involves initiatives in network solutions targeted at the Rail trackside and Power distribution segments. The estimated total

The bars and left-hand scale indicate quarterly net sales. The curve and right-hand scale show rolling four quarter net sales.

market for these three segments is over 4 billion SEK with yearly growth of 10-15%. Westermo has some sales in Rail trackside and Power distribution at present. But to address the whole market, it needs to make investments including an expanded product portfolio and upgrades. These plans also include a larger component of software and services in its business model. In time, we expect this initiative to make a major contribution to the business entity's growth, sales and earnings.

Fourth quarter

Order intake increased by 36% to 188.3 MSEK (138.7). Sales were up by 30% to 167.3 MSEK (128.7). EBITDA rose to 21.0 MSEK (19.0). Depreciation and amortization were 7.4 MSEK (6.3). EBIT increased to 13.6 MSEK (12.7), equivalent to an EBIT margin of 8.1% (9.9). The higher earnings are due to increasing sales volumes.

Full year

Order intake increased by 37% to 687.9 MSEK (502.7). Sales rose by 27% to 584.2 MSEK (461.2). EBITDA was up by 40% to 97.4 MSEK (69.5). Depreciation and amortization were 27.8 MSEK (23.0). EBIT increased by 50% to 69.7 MSEK (46.6), equivalent to an EBIT margin of 11.9% (10.1).

We collaborate with some of the world's most innovative companies, and have major demanding global customers like Alfa Laval, Bombardier, Alstom and Emerson.

Korenix Business entity

The Korenix business entity's recovery is largely going in the right direction after the adaptation of its organization in recent years. Korenix succeeded in securing new business from major and important customers, evident in a sharp upturn in order intake in the fourth quarter, and for the year overall.

However, the sales increase for the fourth quarter was below plan. Some major customers decided to defer shipments into the first half-year 2019, which apart from the loss of sales, also meant that the cost base accumulated was not covered by higher revenues. This resulted in Korenix being forced to report a loss for the quarter and full year. 35-140

In 2018, Korenix worked on its strategic direction for 2019- 2021. This strategy includes a new product plan focusing on the development of new products with enhanced performance. Rapid digital growth is accentuating the need for faster data transmission and more capacity in the form of higher bandwidth. With an expanding product range, Korenix will be able to offer more specific solutions to selected market segments. It will place a special focus on various network and communication solutions in selected segments such as environmental monitoring, water treatment, windpower and intelligent transportation systems, as well as airports.

The business entity has started the new year with a significantly improved order book and its focus in 2019 will be on continued growth towards its target of achieving profitability.

Fourth quarter

Korenix's order intake increased by 51% to 35.7 MSEK (23.6). Sales were up by 6% to 25.8 MSEK (24.4). EBITDA amounted to -0.9 MSEK (1.2). Depreciation and amortization amounted to 3.2 MSEK (7.3). EBIT was -4.1 MSEK (-6.0).

Full year

Korenix's order intake increased by 20% to 129.2 MSEK (107.3). Sales rose by 13% to 117.8 MSEK (104.2). EBITDA was 6.3 MSEK (5.6). Depreciation and amortization were 12.7 MSEK (15.5). EBIT was -6.4 MSEK (-9.9).

Net sales, Korenix

The bars and left-hand scale indicate quarterly net sales. The curve and right-hand scale show rolling four quarter net sales.

Other financial information

Group investments, including capitalized development expenses and acquisitions, amounted to 93.7 MSEK (79.4) in 2018. Cash flow from operating activities before changes in working capital was 134.0 MSEK (61.8). Equity was 652.9 MSEK (585.0) on 31 December 2018. The equity ratio was 43.3% (41.7). Cash and cash equivalents were 94.5 MSEK (89.3). Net debt was 418.0 MSEK (417.4). The average number of employees was 713 (702).

Issue of class C shares

In March 2018, beijer group´s Board of Directors decided to issue 34,657 class C shares with a quotient value of SEK 0.33, in accordance with the authorization of the Annual General Meeting (AGM) 2017. The issue was to a financial institution, and was immediately repurchased by the company. The intention of the repurchased class C shares on delivery to employees in 2020 is to convert them to ordinary shares, pursuant to the terms and conditions of the LTI 2017/2020 incentive program.

New Board members

The AGM of April 2018 resolved to elect Karin Gunnarsson and Lars Eklöf as Board members, and to re-elect the Board members Bo Elisson, Ulrika Hagdahl and Johan Wester. Bo Elisson was elected Chairman of the Board. Karin Gunnarsson holds an M.Sc. (Econ.), and for the previous ten years, was an employee of Hexpol, serving as CFO and Investor Relations Manager for the past six years. Lars Eklöf is the President of Atlas Copco's Motor Vehicle Industry division. Lars Eklöf holds an M.Sc. (Eng.) and has a solid international manufacturing background with Atlas Copco.

New financing agreement

beijer group signed a new three-year financing agreement with a major Scandinavian bank in the fourth quarter. This agreement involves a total facility of 750 MSEK, bringing the Group financial flexibility and room to act for continued expansion, and includes the capacity for smaller and mid-sized complementary acquisitions.

Prospects for the full year 2019

beijer group is expecting to improve Group sales and earnings for the full year 2019 compared to the figures for 2018.

Financial targets for the Group

The Board of Directors set financial targets for beijer group in 2016. The 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.

Malmö, Sweden, 28 January 2019 Per Samuelsson President and CEO

For more information, please contact: President and CEO Per Samuelsson, tel +46 (0)40-35 86 10, +46(0)708-58 54 40 or EVP and CFO Joakim Laurén, tel +46(0)40-35 84 96, +46(0)703-35 84 96

Accounting Principles

For the Group, this Financial Statement has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. The Interim Report for the parent company has been prepared in accordance with the Swedish Annual Accounts Act's chapter 9, Interim Reporting.

IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers came into effect on 1 January 2018. The adoption of IFRS 9 and IFRS 15 did not have any material effect on the Group's or segments' financial reporting.

Judgement of the effects of the transition to IFRS 16 Leases

IFRS 16 Leases comes into effect on 1 January 2019. This Standard regulates the recognition of leases and will replace IAS 17 "Leases" and the associated IFRIC 4, SIC-15 and SIC-27 interpretation statements. The Standard requires that with certain exceptions, assets and liabilities related to all lease arrangements are recognized in the Balance Sheet. Recognition is based on the view that the lessee is entitled to use an asset for a specific period of time, and has a simultaneous obligation to pay for that right. Work on analyzing and evaluating the effects of adoption of the new Standard on the Group's financial reporting is essentially complete.

The Group has identified over 100 arrangements at the transition date that are affected by the new Standard, with most of these contracts being vehicle leases. Primarily, the Group's financial reporting will be impacted by premises lease contracts. There are also a number of leases on office equipment.

The Group has adopted the simplified transition method

for adoption of the new Standard, which means that the full effect of adoption of the Standard will be restated in the opening balances for the financial year 2019 without restating comparative figures. For some of its premises lease contracts, the Group has decided to adopt a methodology involving the assets side being measured on the basis of the actual start date of the lease and the liabilities side being measured with the transition date as the start date. For other arrangements, the transition date has been used as the start date for measuring assets and liabilities, which essentially, are equal in size at the transition date.

Direct acquisition costs for rights of use have not been included on transition. Contracts governing rights of use with a shorter term than 12 months or with acquisition costs of less than 5,000 USD are not included in liabilities or rights of use recognized.

A marginal lending rate has been set by region. Terms of leases have been set on the basis of the duration of arrangements, and by applying knowledge of termination and extension clauses, as well as an evaluation of the significance of the asset to operations.

The Group judges that adoption of the new Standard will have the following effects on the Balance Sheet. Assets will increase by 111 MSEK net, and liabilities will increase by 115 MSEK net. Equity will decrease by 4 MSEK net as a result of rights of use recognized retroactively.

The Group's expectation is that IFRS 16 will have a modest positive effect on EBIT, and less effect on profit/loss after financial items.

Year in Summary

Income Statement—Group

SEK 000	Quarter 4	Quarter 4	Full Year	Full Year
	2018	2017	2018	2017
Net turnover	381,188	322,573	1,417,240	1,205,912
Other operating revenue	908	2,924	1,760	-82
Operating expenses excluding	-341,409	-299,880	-1,268,408	-1,115,504
depreciation and amortisation
EBITDA	40,687	25,617	150,592	90,326
Amortization, and impairment, intangible assets	-15,603	-17,902	-58,293	-55,090
Depreciation, property, plant and equipment	-4,880	-4,340	-18,353	-17,220
EBIT	20,204	3,375	73,946	18,016
Net financial items	-3,816	-4,406	-10,908	-21,853
Profit before tax	16,388	-1,031	63,038	-3,837
Estimated tax	-3,916	8	-19,501	-2,373
Net profit	12,472	-1,023	43,537	-6,210
Attributable to equity holders of the parent	12,620	-814	43,518	-6,988
Attributable to minority interest	-148	-209	19	778
Corresponds to earnings per share, SEK (comparative figure restated for completed rights issue)	0.44	-0.03	1.52	-0.24

Statement of Comprehensive Income—Group

SEK 000	Quarter 4	Quarter 4	Full Year	Full Year
	2018	2017	2018	2017
Net profit	12,472	-1,023	43,537	-6,210
Actuarial gains and losses	-6,959	-9,263	-13,093	-13,267
Translation differences	4,483	15,755	37,614	-27,236
Comprehensive income	9,996	5,469	68,058	-46,713
Attributable to equity holders of the parent	10,072	5,568	67,760	-47,161
Attributable to minority interest	-76	-99	298	448

Balance Sheet—Group

SEK 000	Dec 31, 2018	Dec 31, 2017
Assets
Intangible assets	789,153	754,571
Property, plant and equipment	90,832	84,947
Financial assets	53,838	55,117
Current assets	486,999	435,304
Cash equivalents and short-term investments	94,488	89,281
Total assets	1,515,310	1,419,220
Liabilities and shareholders' equity
Shareholders' equity	652,888	585,015
Minority share of shareholders' equity	3,847	6,221
Long-term liabilities	490,504	511,112
Current liabilities	368,071	316,872
Total liabilities and shareholders' equity	1,515,310	1,419,220
Of which interest-bearing liabilities	512,541	506,662

Statement of Changes to Shareholders' Equity—Group

SEK 000	Dec 31, 2018	Dec 31, 2017
Attributable to equity holders of the parent
Opening balance, shareholders' equity, 1 January	585,015	415,389
Rights issue	-78	216,733
Share-based payment	985	54
Repurchase of treasury shares	-11
Acquisition	-783
Comprehensive income	67,760	-47,161
Closing balance, shareholders' equity	652,888	585,015
Attributable to non-controlling interests
Opening balance, 1 January	6,221	5,773
Dividend	-1,412
Acquisition	-1,260
Comprehensive income	298	448
Closing balance	3,847	6,221

Key Figures—Group

	Dec 31, 2018	Dec 31, 2017
Operating margin, %	5,2	1,5
Profit margin, %	3,1	-0,5
Equity ratio, %	43,3	41,7
Equity per share, SEK	22,8	20,5
Basic earnings per share, SEK	1,52	-0,24
Return on equity after tax, %	7,0	-1,2
Return on capital employed, %	6,7	1,7
Return on net operating assets, %	8,5	2,5
Average number of employees	713	702

Cash Flow Statement—Group

SEK 000	Dec 31, 2018	Dec 31, 2017
Cash flow from operating activities before changes in working capital	134,023	61,765
Change in working capital	-24,958	-13,904
Cash flow from operating activities	109,065	47,861
Cash flow from investing activities	-93,673	-79,400
Cash flow from finance activities	-14,066	17,795
Change in cash equivalents	1,326	-13,744
Cash equivalents and short-term investments, opening balance	89,281	107,228
Exchange rate change, cash equivalents	3,881	-4,203
Cash equivalents and short-term investments, closing balance	94,488	89,281

Operating Segments

SEK 000	Quarter 4	Quarter 4	Full Year	Full Year
	2018	2017	2018	2017
Net sales
Beijer Electronics	191,475	173,231	731,360	659,059
Westermo	167,330	128,700	584,181	461,155
Korenix	25,781	24,414	117,754	104,198
Group adjustments	-3,398	-3,772	-16,055	-18,500
Group	381,188	322,573	1,417,240	1,205,912
EBITDA
Beijer Electronics	25,091	11,393	75,056	36,577
Westermo	21,013	19,010	97,435	69,548
Korenix	-867	1,207	6,331	5,588
Parent company	-6,813	-6,271	-28,558	-22,782
Group adjustments	2,263	278	328	1,395
Group	40,687	25,617	150,592	90,326
EBIT
Beijer Electronics	17,328	5,351	47,361	12,544
Westermo	13,632	12,700	69,679	46,583
Korenix	-4,106	-6,062	-6,362	-9,934
Parent company	-8,915	-8,394	-37,029	-30,877
Group adjustments	2,265	-220	297	-300
Group	20,204	3,375	73,946	18,016

Revenue

SEK 000	Quarter 4	Quarter 4	Full Year	Full Year
	2018	2017	2018	2017
Geographical market
Sweden	59,749	51,617	202,037	171,252
Rest of Nordics	40,765	35,406	139,680	137,413
Germany	30,751	26,772	110,174	93,992
UK	24,500	19,799	94,238	71,155
France	16,874	10,618	52,767	40,595
Turkey	7,896	9,900	31,809	29,221
Rest of Europe	54,139	39,678	204,179	168,810
USA	67,695	56,709	277,401	218,734
Taiwan	15,281	17,174	74,143	78,195
China	28,813	19,492	97,166	70,896
Rest of Asia	28,228	24,484	90,099	85,159
Rest of world	6,443	10,924	43,547	40,490
Group	381,188	322,573	1,417,240	1,205,912
Category
Operator panels and accessories	170,261	152,139	644,937	573,868
Network equipment	191,729	149,776	689,901	547,842
Other products and services	19,198	20,658	82,402	84,202
Group	381,188	322,573	1,417,240	1,205,912

Income Statement—Parent Company

SEK 000	Quarter 4 2018	Quarter 4 2017	Full Year 2018	Full Year 2017
Net sales	8,440	7,941	33,464	31,767
Operating expenses	-18,705	-16,335	-71,843	-62,644
EBIT	-10,265	-8,394	-38,379	-30,877
Net financial items*	567	318	7,808	-21,390
Profit before tax	-9,698	-8,076	-30,571	-52,267
Appropriations	23,000	53,000	23,000	53,000
Estimated tax	-3,403	-9,061	-113	75
Net profit	9,899	35,863	-7,684	808
* of which dividend from subsidiary	0	0	1,417	1,056

Balance Sheet—Parent Company

SEK 000	Dec 31, 2018	Dec 31, 2017
Assets
Fixed assets	749,683	759,718
Current assets	36,555	25,605
Cash equivalents and short-term investments	1,166	1,166
Total assets	787,404	786,489
Liabilities and shareholders' equity
Shareholders' equity	289,798	296,586
Long-term liabilities	392,271	414,178
Current liabilities	105,335	75,725
Total liabilities and shareholders' equity	787,404	786,489
Of which interest-bearing liabilities	383,527	394,822

Parent Company Statement of Changes in Equity

		Other	Share pre mium reserve
SEK 000	Share capital a	restricted equity	and retained earnings	Net profit	Total equity
Opening equity, Jan. 1, 2018	9,534	7,034	280,018		296,586
Change in reserve for development expenditure		1,782	-1,782
Net profit				-7,684	-7,684
Total changes to net worth, exc. transactions
with company's shareholders	9,534	8,816	278,236	-7,684	288,902
Current rights issue a	11		-89		-78
Repurchase of treasury shares			-11		-11
Share-based payment			985		985
Closing equity, Dec 31,2018	9,545	8,816	279,121	-7,684	289,798

a
No. of shares, Jan. 1, 2018	28,601,379
Class C shares in new issue	34,657
No. of shares, Dec. 31, 2018	28,636,036
Quotient value (SEK)	0.33
The issue price was 0.33 SEK per share.

Financial definitions

Average

Average values are computed as the median value of the current reporting period and the corresponding item in comparative periods 12 months previously.

Capital employed Equity plus interest-bearing liabilities.

Development expenditure

Expenditure on product development work, such as personal expenses and external consulting expenses.

Earnings per share

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

Equity ratio Equity in relation to total assets.

Equity per share

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

EBIT

Earnings before interest and taxes.

EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Net debt

Interest-bearing liabilities less cash and cash equivalents and investments in securities, etc.

Operating assets

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

Operating margin EBIT in relation to net sales.

Profit margin Net profit in relation to net sales.

Return on capital employed

Profit before tax plus financial expenses rolling 12 months in relation to average capital employed.

Return on equity after tax Net profit rolling 12 months in relation to average equity.

Return on net operating assets

EBITDA in relation to average net operating assets.

Beijer Electronics Group AB (publ)

Beijer Electronics Group (publ) is a high technology company active in industrial automation and data communication. The company develops and markets competitive products and solutions that focus on the user. Since its start-up in 1981, Beijer Electronics Group has evolved into a multinational group with net sales of 1.4 billion SEK in 2018. The company is listed on NASDAQ OMX Nordic Stockholm Small Cap under the ticker BELE.

More Information

You can subscribe for financial information on Beijer Electronics Group via e-mail. Subscribe easily at our website, www.beijergroup.com. If you have any questions about the Beijer Electronics Group, please call +46 (0)40 35 86 00, or send an email: info@beijergroup.com

Financial Calendar

17 April 2019Three-month Interim Report
8 May 2019Annual General Meeting
12 July 2019Six-month Interim Report
28 October 2019Nine-month Interim Report

Robust digitalization for Smart Cities

Urbanization, digitalization and connection are key drivers in the Industrial Internet of Things (IIoT) markets that beijer group addresses. Network communication for trains, digital control and surveillance of real estate, traffic and energy flows, as well as buses, are components of the Smart City concept. An expanding base of products and systems need to be connected. beijer group has a prominent position in these growth markets.

Head office Beijer Electronics Group AB (publ) Box 426, Stora Varvsgatan 13a 201 24 Malmö, Sweden Corp. ID no. 556025-1851 www.beijergroup.com | +46 (0)40 35 86 00