Beijer Electronics Group — Interim / Quarterly Report 2012

Apr 25, 2012

January—March 2012

Sales in Line with Estimates, Order Intake Increasing

First Quarter

• • Order intake was 353.3 MSEK (350.4)
• • Net sales were 339.0 MSEK (362.0)
• • Operating profit before depreciation and amortization was 41.1 MSEK (53.9), equating to a margin of 12.1%.
• • Operating profit was 25.5 MSEK (41.1), equating to a margin of 7.5%
• • Decline in earnings is entirely attributable to lower volumes within business area HMI Products – however, the trend has turned upwards during this quarter
• • Profit after tax was 12.8 MSEK (28.4)
• • Earnings per share were 0.62 SEK (1.45)

Interim Report, Beijer Electronics AB

Comments from Fredrik Jönsson, CEO

"As reported, Beijer Electronics' sales and profits werelower in the first quarter. However, our results were better than we originally expected, with a strong conclusion to the quarter. Increased order intake, the group's second highest in a quarter, which is also a clear improvement on the two last quarters of the previous year, added to the positive outlook. The decrease in operating profit is wholly related to lower sales volumes.

The HMI Products business area progressed asexpected, but has been through a tough period, primarily with lower demand from the Chinese market and lower sales to the brand label segment. Simultaneously, we are seeing signs that the market has bottomed out, because order intake in the quarter was the third-best ever and March was the single strongest month ever. In quarter-on-quarter terms, HMI Products grew by 6%. The major event in the next quarter is the launch of our new global product family of operator panels, which will be in April.

The Automation business area made stable progress in the period with better profits and unchanged sales. Another positive was the growth in order intake, despite a fairly slow market in Sweden. Therecovery in Norway continued and progress in Finland was positive. Automation hit its longterm margin target of 8%.

Once again, theIDCbusiness area achieved good growth in order bookings and sales, and far better profits. Our initiative on the American market has achieved continued success. Sales in the UK and France wereespecially positive. In China, IDC's products haveencountered great interest. The business areas completed its significant market initiatives and its large-scale investments in product development, because we see very high potential in this business area's future."

Market and Surrounding World

The global industrial automation market progressed at differing rates in the first quarter. The American market saw good growth. In Europe, the outlook was divided, with good demand on certain markets while demand slowed on others. Growth in Asia was slower, simultaneous with there being signs of stabilization, and improved demand compared to the fourth quarter of 2011.

The Group in the First Quarter

The group's order intake increased by 1% to 353.3 MSEK

Business Area Sales and Operating Profit
------------------------------------------	--	--	--	--	--

	Sales Quarter 1		Operating Profit Quarter 1
MKR	1203	1103	1203	1103
Business Area Automation	124.7	125.7	9.6	9.5
Business Area HMI Products	145.5	173.3	13.3	27.8
Business Area IDC	93.8	83.4	7.9	6.3
Intra-group sales	-25.0	-20.4
Group adjustments and depreciation			-5.3	-2.5
Beijer Electronics Group	339.0	362.0	25.5	41.1

(350.4) in the first quarter. This brokethe organic decrease in order intake in the second half-year of 2011. Order intake in the first quarter was up on the third and fourth quarter of 2011.

Group sales decreased by 6% to 339.0 MSEK (362.0). As previously reported, the downturn was due to a weaker market in Asia compared to the corresponding period of 2011. But sales in Asia were better in the period than in the fourth quarter of 2011, and order intake was up by 45%. Sales in Sweden, the group's single biggest market, slowed temporarily in the period, dueto factors including delayed investment decisions. The US, France, UK, Norway and Finland saw healthy growth, while sales in Germany and Denmark reduced.

Group Sales

The group's operating profit was 25.5 MSEK (41.1). The decreaseisexplained by lower sales volumes, higher depreciation and amortization and increased product development expenses. Total development expenses, which relate to the HMI Products and IDC business areas, were 27.1 MSEK (24.3), corresponding to 11% of sales.

Profit before tax was 19.4 MSEK (37.0). Net financial income/expense was -6.1 MSEK (-4.1). Profit after estimated tax was 12.8 MSEK (28.4). Earnings per share after estimated tax were SEK 0.62 (1.45).

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

Group Operating Profit

HMI Products Business Area

The HMI Products business area had very challenging comparative figures in the quarter, becausethe first quarter of 2011 was its best ever. A volume slowdown in Asia, and primarilyChina, where order intake decreased by over 48% in the second half-year 2011, was evident throughout the second half-year 2011. Positive order performance in Asia over the past two months indicate that the market has bottomed out and started a cautious recovery. Order intake in Asia was up 72% in the period, quarter on quarter. The sales slowdown to the brand label segment that began in thesecond half-year of the previous year also had an impact in early-2012. We are continuing to see brisk growth in the US, and overall, the business area performed in line with expectations. Work on an extensive initiative in its new global product family went as planned, with launch in April 2012.

Business area order intake was down by 6% to 159.0 MSEK (169.0). Order intake increased by 6% on the fourth quarter of 2011. Sales were 145.5 MSEK (173.3). Operating profit was 13.3 MSEK (27.8). The operating margin was 9.1% (16.1). The profit decrease is due to lower sales volumes.

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

Sales by geographical market for the first quarter 2012 compared to 2011.

Sales, HMI Products

Automation Business Area

The Nordic automation market made stable progress. Order intake in the marine sector posted brisk growth of over 20%, as also reflected in Norway, which continued its recovery. Finland also made positive progress,while demand in Sweden and Denmark was weaker. In Sweden, the market featured a hesitant attitude with investment decisions taking longer. Meanwhile, the business pipeline includes many major potential projects. Automation also launched a broader range of proprietary-branded complementary automation products in the quarter, and thanks to this, we see good prospects of more business.

Sales, Automation

Business area order intakeincreased by 4% to 132.4 MSEK (127.4). Automation's saleswerelargely unchanged at 124.7 MSEK (125.7). Operating profit was 9.6 MSEK (9.5), corresponding to an operating margin of 7.7% (7.5), which is close to the business area's long-term target of 8%.

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

Sales by geographical market for the first quarter 2012 compared to 2011.

The Industrial Data Communications Business Area

IDC continued its positive progress with good organic growth of 12% and improved profits. The business area scored continued successes in the US. In the UK and France, sales increased sharply for reasons including initiatives targeting the infrastructure segment. The initiative in China looks very promising and IDC's products are attracting major interest in Asia. Meanwhile, the business area's significant initiatives in market and product development continued as planned.

Business area order intakeincreased by 13% to 94.9 MSEK (83.6). Sales increased by 12% to 93.8 MSEK (83.4). Operating profit increased by 25% to 7.9 MSEK (6.3), equating to a margin of 8.4% (7.5). The profit increase is due to higher sales volumes.

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

Sales, IDC Sales by Geographical Market, IDC

Sales by geographical market for the first quarter 2012 compared to 2011.

Other Financial Information

Group investments including capitalized development expenses were 18.5 MSEK (16.2). Cash flow from operating activities was 24.0 MSEK (-21.7). Equity was 423.7 MSEK (345.1) as of March 31, 2012. The equity ratio was 29.6% (26.9). Cash and cash equivalents were 194.9 MSEK (104.1). Interest-bearing liabilities amounted to 676.4 MSEK (543.5). The average number of employees was 676 (680).

Prospects for 2012

As previously reported, Beijer Electronics posted lower sales and profits in the first quarter of 2012. We are noting signs of improved demand, because order intakeincreased in the period, especially compared to the second half-year 2011. The group has executed aggressive initiatives that will take some time to take effect on sales and profits. Overall, we are confident of good progress in the coming quarters, and for the full year 2012.

Accounting Principles

For the group, the Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations of the Swedish Annual Accounts Act. For the parent company, the Interim Report has been prepared in accordance with the Swedish Annual Accounts Act's chapter 9, Interim Reporting. The accounting principles applied for the group and parent company are consistent with those accounting principles used when preparing the latest annual accounts.

This Report has not been subject to review by the company's auditors.

Malmö, Sweden, April 25, 2012 Fredrik Jönsson CEO and President

For more information, please contact: CEO and President Fredrik Jönsson, tel +46 (0)40 35 86 10, +46 (0)70 517 1626 or CFO Anna Belfrage, tel +46 (0)40 35 86 53, +46 (0)70 635 8653.

Interim Report in Summary

Income Statement—Group

SEK 000	Quarter 1, 2012	Quarter 1, 2011	Full Year, 2011
Net turnover	338,990	362,015	1,417,705
Other operating revenue	-974	728	349
Operating expenses excluding
depreciation and amortisation	-296,962	-308,858	-1,214,762
Operating profit before depreciation
and amortization	41,054	53,885	203,292
Amortization, intangible assets	-9,694	-9,109	-37,168
Depreciation, property, plant and equipment	-5,887	-3,650	-15,854
Operating profit	25,473	41,126	150,270
Net financial items	-6,112	-4,141	-17,292
Profit before tax	19,361	36,985	132,978
Estimated tax	-6,540	-8,552	-33,854
Net profit	12,821	28,433	99,124
Attributable to equity holders of the parent	11,670	27,368	95,288
Attributable to minority interest	1,151	1,065	3,836
Earnings per share, SEK a	0.62	1.45	5.03

a The number of shares of the company has increased through a new issue of 90,000 shares and a 3:1 split, and now amounts to 18,934,464 (6,221,488). Earnings per share for previous periods have been restated.

Statement of Comprehensive Income

SEK 000	Quarter 1, 2012	Quarter 1, 2011	Full Year, 2011
Net profit	12,821	28,433	99,124
Translation differences	-8,110	-20,710	8,210
Comprehensive income	4,711	7,723	107,334
Attributable to equity holders of the parent	3,384	7,337	104,070
Attributable to minority interest	1,327	386	3,264

Balance Sheet—Group

SEK 000	Mar 31, 2012	Mar 31, 2011	Dec 31, 2011
Assets
Fixed assets	790,291	767,978	798,092
Current assets	511,982	474,325	502,405
Cash equivalents and short-term investments	194,920	104,116	178,258
Total assets	1,497,193	1,346,419	1,478,755
Liabilities and shareholders' equity
Shareholders' equity	423,649	345,066	420,265
Minority share of shareholders' equity	20,213	16,647	18,886
Long-term liabilities	550,192	633,681	585,910
Current liabilities	503,139	351,025	453,694
Total liabilities and shareholders' equity	1,497,193	1,346,419	1,478,755
Of which interest-bearing liabilities	676,360	543,506	607,839

Statement of Changes to Shareholders' Equity—Group

SEK 000	Mar 31, 2012	Mar 31, 2011	Dec 31, 2011
Attributable to equity holders of the parent
Opening balance, shareholders' equity, 1 January	420,265	337,729	337,729
Other paid-up capital			15,705
New stock issue			90
Dividend			-37,329
Comprehensive income	3,384	7,337	104,070
Closing balance, shareholders' equity	423,649	345,066	420,265
Minority interest
Opening balance, 1 January	18,886	27,640	27,640
Acquisitions		-11,379	-11,379
Dividend			-639
Comprehensive income	1,327	386	3,264
Closing balance	20,213	16,647	18,886

Key Figures

Mar 31, 2012	Mar 31, 2011	Dec 31, 2011
7.5	11.4	10.6
3.8	7.9	7.0
29.6	26.9	29.7
22.4	18.2	22.2
0.62	1.45	5.03
20.7	29.9	24.6
16.7	18.6	17.3
20.3	21.1	20.4
676	680	668

Cash Flow Statement—Group

SEK 000	Mar 31, 2012	Mar 31, 2011	Dec 31, 2011
Cash flow from operating activities before
changes in working capital	22,280	36,934	160,514
Change in working capital	1,735	-58,672	-104,028
Cash flow from operating activities	24,015	-21,738	56,486
Cash flow from investing activities	-18,502	-62,336	-107,260
Cash flow from finance activities	12,747	85,213	159,715
Dividends paid			-37,968
Change in cash equivalents	18,260	1,139	70,973
Cash equivalents and short-term investments, opening balance	178,258	105,064	105,064
Exchange rate change, cash equivalents	-1,598	-2,087	2,221
Cash equivalents and short-term investments,
closing balance	194,920	104,116	178,258

Operating Segments

SEK 000	Quarter 1, 2012	Quarter 1, 2011	Full Year, 2011
Net turnover
Automation	124,693	125,672	497,201
HMI Products	145,536	173,258	627,177
IDC	93,754	83,470	385,216
Elimination	-24,993	-20,385	-91,889
Group	338,990	362,015	1,417,705
Operating profit before depreciation and amortization
Automation	10,590	10,528	38,383
HMI Products	19,429	33,618	111,396
IDC	11,981	9,923	61,966
Parent company	-3,968	-16	-9,774
Group adjustments and depreciation	3,022	-168	1,321
Group	41,054	53,885	203,292
Operating profit
Automation	9,648	9,488	34,480
HMI Products	13,290	27,831	87,354
IDC	7,910	6,300	46,243
Parent company	-4,971	-725	-12,887
Group adjustments and depreciation	-404	-1,768	-4,920
Non-recurring items
Group	25,473	41,126	150,270
Net profit
Automation	7,673	7,100	25,576
HMI Products	8,289	21,426	64,453
IDC	3,723	3,380	29,593
Parent company	-9,724	-7,615	31,936
Group adjustments and depreciation	2,860	4,142	-52,434
Group	12,821	28,433	99,124
Attributable to equity holders of the parent	11,670	27,368	95,288
Attributable to minority interest	1,151	1,065	3,836

Income Statement—Parent Company

SEK 000	Quarter 1, 2012	Quarter 1, 2011	Full Year, 2011
Net turnover	14,073	13,698	65,059
Operating expenses	-19,044	-14,423	-77,946
Operating profit	-4,971	-725	-12,887
Net financial items	-8,205	-9,607	33,907 *
Profit before tax	-13,176	-10,332	21,020
Appropriations			7,606
Estimated tax	3,452	2,717	3,310
Net profit	-9,724	-7,615	31,936

* of which 42.2 MSEK (24.5) is dividends from subsidiaries

Balance Sheet—Parent Company

SEK 000	Quarter 1, 2012	Quarter 1, 2011	Full Year, 2011
Assets
Fixed assets	660,610	585,322	604,313
Current assets	52,565	29,437	100,489
Cash equivalents and short-term investments	1,009	780	116
Total assets	714,184	615,539	704,918
Liabilities and shareholders' equity
Shareholders' equity	71,365	47,229	81,091
Untaxed reserves	14,284	21,890	14,284
Long-term liabilities	429,169	403,755	378,064
Current liabilities	199,366	142,665	231,479
Total liabilities and shareholders' equity	714,184	615,539	704,918
Of which interest-bearing liabilities	628,764	511,481	560,744

Beijer Electronics AB

Beijer Electronics is a fast-growing technology company active in industrial automation and data communications.The company develops and markets products and solutions that focus on the user. Since its start-up in 1981, Beijer Electronics has evolved into a multinational group present in 21 countries. The company is listed on NASDAQ OMX Nordic Exchange Small Cap list under the ticker BELE.

More Information

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

Financial Calendar

July 13, 2012 (NB: new date)..........Six-month Interim Report October 25, 2012..................... Nine-month Interim Report

A new series of frequency inverters has been launched under the Beijer Electronics brand. These products have features meeting HVAC (heating, ventilation and air conditioning) demands, such as IP 55/IP 66 classification, dedicated pump and fan functionality, competitive pricing and fast delivery guarantees. Combined with support from Beijer Electronics Drives Group, the company now has a very strong offering in drive systems.

Read more at www.beijer.se

Head office Beijer Electronics AB (publ) Box 426, Krangatan 4a 201 24 Malmö, Sweden Corp. ID no. 556025-1851 www.beijerelectronics.se | +46 (0)40 35 86 00