Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Beijer Electronics Group Interim / Quarterly Report 2018

Oct 24, 2018

3007_10-q_2018-10-24_ee2adea5-6e95-405b-b9ae-ead25ff4861f.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

JANUARY - SEPTEMBER 2018

Positive trend of high volumes continues and earnings improve

Third quarter

  • Order intake rose by 25% to 372 MSEK (297).
  • Net sales increased by 17% to 338 MSEK (289).
  • EBIT was 17.7 MSEK (5.6).
  • Profit after tax increased to 11.0 MSEK (-2.2).
  • Earnings per share increased to 0.38 SEK (-0.09).

Nine months

  • Order intake rose by 24% to 1,141 MSEK (922).
  • Net sales increased by 17% to 1,036 MSEK (883).
  • EBIT was 53.7 MSEK (14.6).
  • Profit/loss after tax increased to 31.1 MSEK (-5.2).
  • Earnings per share increased to 1.08 SEK (-0.22).

Interim Report for Beijer Electronics Group AB

Comments from CEO Per Samuelsson

" The progress of Beijer Electronics Group in the third quarter underscored the positive trend of the first halfyear. The pattern is similar, with order intake and sales increasing in the period. Gross margin increased somewhat, and combined with good control of overheads, this meant EBIT improved.

Our financial performance confirms that we are delivering as planned.

The Group's different operations have progressively stabilised, and the organisation is steady after its major transformation. I can conclude that the high order intake in the year has been a positive surprise for us, but this obviously brings challenges to our delivery organisation.

We beat our long-term growth targets, and growth is still a high priority. With increased volumes, we're getting a good pay-off and gradually increasing EBIT margins, even if they may fluctuate between quarters.

The EBIT margin, given the circumstances, is developing in the right direction. Our organisation is still delivering on a professional footing, and combined with an excellent tempo of order intake, this offers us good potential to achieve our earnings target of a 10% EBIT margin going forward. Cash flow improved in the quarter year on year, but remains unsatisfactory.

The Beijer Electronics business entity continued as planned, with positive progress in the quarter. Most markets achieved good growth, especially the US. Our new X2 series has achieved more successes in Europe and the US. In Asia, conversion to the new terminal has now commenced, and will continue at full speed in 2019.

Beijer Electronics has concluded the test phase of its new Fast track to the cloud solution for some 20 different customers. This solution is a clear example of the Group's investment in the growing IIoT market. The solution has been very well received by customers, with acceptance fully satisfying our high expectations. The plan is to roll out the commercial launch of this solution progressively through 2019.

The Westermo business entity is achieving impressive order intake and sales growth, which beat our estimates with a good margin, with increases of nearly 60% and 30% respectively in the third quarter. The train side is making the main positive progress, but other segments and off-the-shelf products are in good growth. Westermo has now definitively secured status as a major, competitive global player with key customers across North America, Europe and Asia.

Obviously, this progress is positive, but simultaneously presents our organisation with several challenges.

After eight quarters of better order intake than sales, we have a strong order book.

per samuelsson, president and ceo

A component shortage, and bottlenecks at the supplier level and in manufacturing, have also impacted our delivery capacity. Our priority has been on securing shipments to customers and expanding capacity, which has resulted in increased expenses temporarily, and impacted the EBIT margin in the quarter.

The Korenix business entity made mixed progress in the third quarter. Sales were up by 20%, while order intake increased marginally simultaneous with losses narrowing, nearly to break-even. The business entity continued to work on its new organisation, addressing new customers and major product sales. After its transformation in 2017, Korenix is focused on recovery in 2018, with the aim of becoming profitable in 2019.

For the Group overall, sales and earnings rose sharply in the first three quarters of the year, compared to the corresponding period of 2017. We expect the Group to increase sales and earnings again in the fourth quarter compared to the corresponding period of 2017."

The Group in the third quarter

The Group's order intake kept progressing strongly in the third quarter 2018, increasing by 25% to 372.1 MSEK (297.4). The Westermo business entity was a stand-out, with an increase of 57%, while Beijer Electronics was up by 8%, and Korenix's order intake increased somewhat. Adjusted for currency effects, the Group's order intake increased by 19%.

The Group's sales increased by 17% to 338.4 MSEK (289.1). The increase was broad based, and split fairly evenly between different markets and regions. Adjusted for currency effects, sales were up by 11%.

The Group's EBITDA increased by 69% to 37.8 MSEK (22.4). Depreciation and amortization were 20.0 MSEK (16.7). EBIT rose to 17.7 MSEK (5.6), equating to an EBIT margin of 5.2% (1.9). The earnings improvement is due to higher sales volumes, a wider gross margin, good cost control, and positive currency effects of 2 MSEK. Total development expenditure amounted to 38.0 MSEK (33.9),

Sales
Quarter 3
EBIT
Quarter 3
Sales
9 mth.
EBIT
9 mth.
MSEK 1809 1709 1809 1709 1809 1709 1809 1709
Beijer Electronics 174.5 159.4 8.9 1.6 539.9 485.8 30.0 7.2
Westermo 138.3 108.5 15.5 13.1 416.9 332.5 56.0 33.9
Korenix 30.6 25.5 -0.2 -2.3 92.0 79.8 -2.3 -3.9
Intra-group sales -5.0 -4.3 -12.7 -14.8
Group adjustments and parent company -6.5 -6.8 -30.0 -22.6
Beijer Electronics Group 338.4 289.1 17.7 5.6 1 036.1 883.3 53.7 14.6

Business entity net sales and EBIT

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 net sales

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

Group EBIT

The bars and left-hand scale indicate quarterly EBIT. The curve and righthand scale show rolling four quarter EBIT.

corresponding to 11.2% (11.7) of Group sales.

Profit before tax increased to 15.0 MSEK (0.7). Net financial income/expense was -2.7 MSEK (-5.0). The improved net financial income/expense is due to the rights issue executed in 2017 and more positive financing terms. Profit after estimated tax was 11.0 MSEK (-2.2). Earnings per share after estimated tax amounted to 0.38 SEK (-0.09).

First nine months

Order intake increased by 24% to 1,141.2 MSEK (922.1) in the first nine months of the year. Currency adjusted, order intake increased by 22%. Sales rose by 17% to 1,036.1 MSEK (883.3). Adjusted for currency effects, sales increased by 15%.

The Group's EBITDA was up by 70% to 109.9 MSEK (64.7). Depreciation and amortization were 56.2 MSEK (50.1). EBIT increased to 53.7 MSEK (14.6), equivalent to an EBIT margin of 5.2% (1.7). Total development expenditure was 117.5 MSEK (109.0), or 11.3% (12.3) of Group sales.

The profit/loss before tax increased to 46.7 MSEK (-2.8). The net financial income/expense was -7.1 MSEK (-17.4). The profit/loss after estimated tax increased to 31.1 MSEK (-5.2). The relatively high tax charge in the nine-month period is mainly due to a cautious assessment of loss carryforwards. Earnings per share after estimated tax amounted to 1.08 SEK (-0.22).

Cash flow over the next 12 months should be significantly better.

per samuelsson, president and ceo

Beijer Electronics Business entity

In the third quarter, the Beijer Electronics business entity secured the positive trend of the first two quarters of the year. Order intake and sales continued to rise, while EBIT increased significantly. Meanwhile, operations were impacted by stronger seasonality, with the usual lower activity in the third quarter compared to other quarters due to vacations. 1100 1200

Most of the markets the business entity addresses saw healthy growth. Continued good progress in the US was especially positive, although EMEA and Asia also reported growth, with a few exceptions. 700 800 900

The new X2 series HMIs are achieving sales successes in Europe and the US. In unit terms, the X2 series represented nearly 40% of total sales in the quarter. In Asia, conversion to these new terminals has begun, a process expected to take longer in Asia, and impact sales over the forthcoming 12-month period. 200 300 400

Product development continued as planned. The test phase of our new Fast track to the cloud solution for some 20 different customers concluded in the third quarter. This solution has been very well received by customers, with acceptance fully matching expectations. The solution integrates soft and hardware, and is an IIoT application with easy connections to existing automation equipment. 0 100

Net sales, Beijer Electronics

The bars and left-hand scale indicate quarterly net sales. The curve and right-hand scale show rolling four quarter net sales. The plan is to roll out the commercial launch of this new solution progressively through 2019.

Essentially, the business entity's new strategy is going as planned. The new organization is becoming more stable.

New products with higher software content and a new, more customer-oriented sales organization are contributing to growth, which is exclusively organic.

A combination of a higher share of new proprietary products with higher margins, and cost savings in production and logistics, had a positive impact on gross margins. This transition has resulted in a rapid improvement in EBIT margin.

Third quarter

Order intake was up by 8% to 180.6 MSEK (167.4). Sales increased by 9% to 174.5 MSEK (159.4). EBITDA doubled to 16.5 MSEK (8.0). Depreciation and amortization were 7.6 MSEK (6.4). EBIT rose to 8.9 MSEK (1.6), equivalent to a margin of 5.1% (1.0). This major improvement is due to rising sales volumes and a wider gross margin, as well as good cost control.

Nine months

Order intake rose by 15% to 560.6 MSEK (489.1). Sales were up by 11% to 539.9 MSEK (485.8). EBITDA increased to 50.0 MSEK (25.2). Depreciation and amortization were 19.9 MSEK (18.0). EBIT increased to 30.0 MSEK (7.2), equivalent to an EBIT margin of 5.6% (1.5).

We have high expectations on our products and services addressing the growing IIoT market.

per samuelsson, president and ceo

Westermo Business entity

The Westermo business entity continued its convincing performance on the market in the third quarter. Order intake was up by almost 60% in the period. Sales also progressed positively, with gains of nearly 30%. Westermo secured a major 17 MSEK order from an important US train manufacturer in the quarter, which has placed large repeat orders. The business entity also won a strategic breakthrough 6 MSEK order from Siemens Mobility in the UK to upgrade an existing train fleet.

Westermo's sales are increasing on virtually all markets. Progress in the US, in terms of order intake and sales, was especially pleasing.

Westermo's high growth rate has exceeded internal estimates. This is positive, but also presents several challenges to its organization. The global component shortage, and bottlenecks among suppliers and manufacturers, have caused shortcomings in delivery capacity.

The priority has been to prioritize shipments to customers above efficiency. Westermo is investing in expanding capacity to address high demand. In the short term, this progress has impacted EBIT margins between quarters. The goal is to increase margins, which we expect to achieve as capacity expands.

Third quarter

Order intake increased by 57% to MSEK 168.2 (107.0). Sales rose by 27% to 138.3 MSEK (108.5). EBITDA was up by 24% to 22.6 MSEK (18.2). Depreciation and amortization amounted to 7.1 MSEK (5.1). EBIT was up by 18% to 15.5 MSEK (13.1), equivalent to an EBIT margin of 11.2% (12.1). The EBIT improvement is due to rising sales volumes.

Nine months

Order intake was up by 37% to 499.6 MSEK (364.0). Sales rose by 25% to 416.9 MSEK (332.5). EBITDA was up by 51% to 76.4 MSEK (50.5). Depreciation and amortization amounted to 20.4 MSEK (16.7). EBIT increased by 65% to 56.0 MSEK (33.9), equivalent to an EBIT margin of 13.4% (10.2).

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

Korenix Business entity

The Korenix business entity achieved good sales growth in the third quarter, although order intake increased somewhat. Operations were impacted by stronger seasonality, with the usual lower activity in the third quarter compared to other quarters because some one-half of volumes are to Europe.

Korenix is continuing to fine-tune its new organization, addressing customers and major project sales. Another positive is that the Chinese operation is heading in the right direction. The sales increase in the quarter enabled losses to be narrowed, nearly to break-even.

After its adjustment of 2017, Korenix is focused on recovery in 2018, with the aim of achieving profitability in 2019.

Third quarter

Korenix's order intake amounted to 28.3 MSEK (27.2) in the third quarter. Sales were up by 20% to 30.6 MSEK (25.5). EBITDA amounted to 3.0 MSEK (0.5). Depreciation and amortization amounted to 3.2 MSEK (2.8). EBIT was -0.2 MSEK (-2.3).

Nine months

Korenix's order intake increased by 12% to 93.5 MSEK (83.7). Sales rose by 15% to 92.0 MSEK (79.8). EBITDA was 7.2 MSEK (4.4). Depreciation and amortization were 9.5 MSEK (8.3). EBIT was -2.3 MSEK (-3.9).

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 70.4 MSEK (58.2) in the first nine months of the year. Cash flow from operating activities was 64.8 MSEK (-8.6). Equity was 642.8 MSEK (578.4) on 30 September 2018. The equity ratio was 42.9% (41.6). Cash and cash equivalents were 75.1 MSEK (70.4). Net debt was 434.9 MSEK (436.9). The average number of employees was 709 (692).

Issue of class C shares

In March 2018, Beijer Electronics 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 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 Annual General Meeting (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.

Prospects for the full year 2018

Compared to the corresponding period of 2017, Beijer Electronics Group reported significantly improved sales and earnings in the first three quarters of the year. For the fourth quarter, the Group is again expecting to report higher sales and earnings than the corresponding period of 2017.

Financial targets for the Group

The Board of Directors set new financial targets for Beijer Electronics Group in the first quarter 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.

Per Samuelsson President and CEO Malmö, Sweden, 24 October 2018

For more information, please contact: President and CEO Per Samuelsson, tel +46 (0)40 35 86 10, +46(0)70 858 5440 or EVP and CFO Joakim Laurén, tel +46(0)40 35 84 96, +46(0)70 335 8496

Accounting policies

For the Group, this Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. For the parent company, this Interim Report 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 as of 1 January 2018. The implementation of IFRS 9 and IFRS 15 did not have any material effect on the Group's or segments' financial reporting.

New IFRS Standards that have not yet come into effect

IFRS 16 Leases comes into effect on 1 January 2019. The project the group initiated earlier this year to analyze and evaluate the effects of the introduction of this new standard on its financial reporting is progressing according to plan. All the Group's lease arrangements have been mapped, and a detailed review of each individual lease has been completed in collaboration with external expertise. The preliminary conclusions are scheduled to be available coincident with publication of the Year-end Report in January 2019.

Auditor's report

Beijer Electronics Group AB (publ.) org nr 556025-1851

Introduction

We have reviewed the condensed interim financial information (interim report) of Beijer Electronics Group AB (publ.) as of 30 September 2018 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become

aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, Sweden, 24 October 2018

Öhrlings PricewaterhouseCoopers AB

Sofia Götmar-Blomstedt Authorized Public Accountant Lead Audit Partner

Magnus Jönsson Authorized Public Accountant

Interim Report in Summary

Income Statement—Group

SEK 000 Quarter 3,
2018
Quarter 3,
2017
9 mth.
2018
9 mth.
2017
Full year,
2017
Net sales 338,448 289,116 1,036,052 883,339 1,205,912
Other operating revenue -4,462 -1,105 853 -3,006 -82
Operating expenses excluding depreciation
and amortisation
-296,235 -265,645 -927,000 -815,624 -1,115,504
Operating profit before depreciation
and amortization
37,751 22,366 109,905 64,709 90,326
Amortization, intangible assets -15,115 -12,516 -42,689 -37,188 -55,090
Depreciation, property, plant and equipment -4,927 -4,226 -13,473 -12,880 -17,220
Operating profit 17,709 5,624 53,743 14,641 18,016
Net financial items -2,661 -4,954 -7,092 -17,447 -21,853
Profit before tax 15,048 670 46,651 -2,806 -3,837
Estimated tax -4,042 -2,848 -15,586 -2,381 -2,373
Net profit 11,006 -2,178 31,065 -5,187 -6,210
Attributable to equity holders of the parent 10,986 -2,583 30,898 -6,174 -6,988
Attributable to minority interest 20 405 167 987 778
Earnings per share, SEK
(comparative figure restated for rights issues)
0.38 -0.09 1.08 -0.22 -0.24

Comprehensive Income

SEK 000 Quarter 3,
2018
Quarter 3,
2017
9 mh.
2018
9 mth
2017
Full year,
2017
Net profit 11,006 -2,178 31,065 -5,187 -6,210
Actuarial gains and losses -3,067 -2,002 -6,134 -4,004 -13,267
Translation differences -12,046 -24,343 33,131 -42,991 -27,236
Comprehensive income -4,107 -28,523 58,062 -52,182 -46,713
Attributable to equity holders of the parent -4,024 -28,649 57,688 -52,729 -47,161
Attributable to non-controlling interest -83 126 374 547 448
Balance Sheet—Group
--------------------- --
SEK 000 Sept. 30, 2018 Sept. 30, 2017 Dec. 31, 2017
Assets
Intangible assets 781,779 744,477 754,571
Property, plant and equipment 92,490 82,141 84,947
Financial assets 59,886 62,690 55,117
Current assets 497,844 445,223 435,304
Cash and cash equivalents and 75,130 70,396 89,281
short-term investments
Total assets 1,507,129 1,404,927 1,419,220
Equity and liabilities
Equity attributable to equity holders of the parent 642,823 578,353 585,015
Non-controlling interests 3,957 6,320 6,221
Long-term liabilities 494,331 519,478 511,112
Current liabilities 366,018 300,776 316,872
Total equity and liabilities 1,507,129 1,404,927 1,419,220
Of which interest-bearing liabilities 510,056 507,256 506,662
Statement of Changes to Shareholders' Equity
SEK 000 Sept. 30, 2018 Sept. 30, 2017 Dec. 31, 2017
Attribute of all to parent company shareholders
Opening equity, January 1, in accordance
with adopted balance sheet
585,015 415,389 415,389
Rights issue -78 215,693 216,733
Share-based payment 985 54
Repurchase of treasury shares -11
Acquisitions -776
Comprehensive Income 57,688 -52,729 -47,161
Closing equity 642,823 578,353 585,015
Non controlling interests
Opening equity, 1 Jan. 6,221 5,773 5,773
Dividend -1,371
Acquisitions -1,267
Comprehensive income 374 547 448
Closing equity 3,957 6,320 6,221

Key Figures–Group

Sept. 30, 2018 Sept. 30, 2017 Dec. 31, 2017
Operating margin, % 5.2 1.7 1.5
Profit margin, % 3.0 -0.6 -0.5
Equity ratio, % 42.9 41.6 41.7
Equity per share, SEK (comparative figure restated
for current rights issue)
22.5 20.2 20.5
Earnings per share, SEK (comparative figure
restated for current rights issue)
1.08 -0.22 -0.24
Return on equity after tax, % 4.9 -2.8 -1.2
Return on capital employed, % 5.2 2.1 1.7
Return on net operating assets, % 6.5 3.0 2.5
Average number of employees 709 692 702

Cash Flow Statement—Group

SEK 000 Sept. 30, 2018 Sept. 30, 2017 Dec. 31, 2017
Cash flow from operating activities before
changes in working capital 90,861 30,433 61,765
Change in working capital -26,068 -39,029 -13,904
Cash flow from operating activities 64,793 -8,596 47,861
Cash flow from investing activities -70,369 -58,214 -79,400
Cash flow from finance activities -10,177 35,596 17,795
Change in cash equivalents -15,753 -31,214 -13,744
Cash equivalents and short-term investments,
opening balance 89,281 107,228 107,228
Exchange rate change, cash equivalents 1,602 -5,618 -4,203
Cash equivalents and short-term investments,
closing balance 75,130 70,396 89,281

Operating Segments

SEK 000 Quarter, 3
2018
Quarter, 3
2017
9 Mth.
2018
9 Mth.
2017
Full Year
2017
Net sales
Beijer Electronics 174,506 159,407 539,885 485,828 659,059
Westermo 138,267 108,499 416,851 332,456 461,155
Korenix 30,616 25,485 91,973 79,784 104,198
Koncernjusteringar -4,941 -4,275 -12,657 -14,729 -18,500
Group 338,448 289,116 1,036,052 883,339 1,205,912
Operating profit before depreciation
and amortization
Beijer Electronics 16,478 8,010 49,965 25,183 36,577
Westermo 22,595 18,243 76,422 50,538 69,548
Korenix 3,024 477 7,198 4,381 5,588
Parent company -4,642 -4,260 -21,745 -16,511 -22,782
Group adjustments 296 -104 -1,935 1,118 1,395
Group 37,751 22,366 109,905 64,709 90,326
Operating profit
Beijer Electronics 8,870 1,643 30,033 7,193 12,544
Westermo 15,507 13,127 56,046 33,883 46,583
Korenix -213 -2,307 -2,256 -3,872 -9,934
Parent company -6,749 -6,251 -28,114 -22,483 -30,877
Group adjustments 294 -588 -1,966 -80 -300
Group 17,709 5,624 53,743 14,641 18,016
Quarter 3,
2018
47,912
29,212
31,091
Quarter 3,
2017
34,480
35,345
9 mth.
2018
142,288
9 mth.
2017
119,635
Full year,
2017
171,252
98,915 102,007 137,413
22,388 79,423 67,219 93,992
21,643 18,154 69,738 51,356 71,155
10,885 8,819 35,893 29,977 40,595
6,800 6,954 23,912 19,321 29,221
51,797 44,305 149,986 129,133 168,810
66,508 50,442 209,706 162,026 218,734
18,116 19,164 58,861 61,021 78,195
21,989 15,029 68,353 51,404 70,896
18,812 22,297 61,871 60,675 85,159
13,683 11,737 37,105 29,565 40,490
338,448 289,116 1,036,052 883,339 1,205,912
155,628 139,662 474,676 421,729 573,868
165,464 130,185 498,172 398,066 547,842
17,356 19,269 63,204 63,544 84,202
338,448 289,116 1,036,052 883,339 1,205,912

Income Statement—Parent Company

SEK,000 Quarter 3
2018
Quarter 3
2017
9 mth.
2018
9 mth.
2017
Full year,
2017
Net turnover 8,366 7,942 25,024 23,826 31,767
Operating expenses -15,115 -14,193 -53,138 -46,309 -62,644
Operating profit -6,749 -6,251 -28,114 -22,483 -30,877
Net financial items* -2,278 -7,349 7,241 -21,708 -21,390
Profit before tax -9,027 -13,600 -20,873 -44,191 -52,267
Appropriations 53,000
Estimated tax 1,642 2,629 3,290 9,136 75
Net profit -7,385 -10,971 -17,583 -35,055 808
*of which dividend from subsidiaries 0 1,056 1,417 1,056 1,056

Balance Sheet—Parent Company

SEK 000 Sept. 30, 2018 Sept. 30, 2017 Dec. 31, 2017
Assets
Fixed assets 739,309 726,095 759,718
Current assets 12,819 12,091 25,605
Cash equivalents and short-term investments 1,166 1,166 1,166
Total assets 753,294 739,352 786,489
Liabilities and shareholders' equity
Shareholders' equity 279,899 259,629 296,586
Long-term liabilities 376,046 400,205 414,178
Current liabilities 97,349 79,518 75,725
Total liabilities and shareholders' equity 753,294 739,352 786,489
Of which interest-bearing liabilities 387,377 405,569 394,822

Parent Company Statement of Changes in Equity

SEK 000 Share capital a Other
restricted
equity
Share pre
mium reserve
and retained
earnings
Net profit Total equity
Opening equity, 1 Jan. 2018 9,534 7,034 280,018 296,586
Net profit -17,583 -17,583
Total changes to net worth, excl.
transactions with company's shareholders
9,534 7,034 280,018 -17,583 279,003
Rights issuea 11 -89 -78
Repurchase of treasury shares -11 -11
Share-based payment 985 985
Closing equity, 30 Sept. 2018 9,545 7,034 280,903 -17,583 279,899
a
No. of shares, 1 Jan. 2018 28,601,379
Shares issued in current rights issue 34,657
No. of shares, 30 Sept. 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 personnel expenditure and external consulting expenditure, 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.

Equity ratio Equity in relation to total assets.

Equity per share

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

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

Operating profit 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

Operating profit (profit after depreciation and amortization) 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 1.2 billion SEK in 2017. 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: [email protected]

Financial Calendar

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

Fast track to the cloud

Fast track to the cloud accelerates the process of automating existing and new machinery and technical equipment to quickly generate critical business intelligence and actionable insights. Combined with our range of IIoT devices, Fast track to the cloud enables clients to collect data from any type of equipment, no matter what brand, and bring data to the cloud. Fast track to the cloud utilizes our utilizes our WARP Engineering Studio and other technologies to configure the solution within minutes. See at a glance which processes are running smoothly, which machines have less uptime, when you need maintenance, etc. With Fast track to the cloud, all the information is at your fingertips.

Läs mer på www.beijerelectronics.com/FTTTC

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