Beijer Electronics Group — Interim / Quarterly Report 2018

Jul 13, 2018

JANUARY—JUNE 2018

Volumes still strong, and earnings improve

Second quarter

• Order intake rose by 21% to 371 MSEK (307).
• Net sales increased by 19% to 361 MSEK (304).
• EBIT was 18.0 MSEK (6.5).
• Profit after tax was 10.5 MSEK (0.8).
• Earnings per share were 0.36 SEK (0.02).

First half-year

TAIPEI CITY BUS

• Order intake rose by 23% to 769 MSEK (625).
• Net sales increased by 17% to 698 MSEK (594).
• EBIT was 36.0 MSEK (9.0).
• Profit/loss after tax was 20.1 MSEK (-3.0).
• Earnings per share were 0.70 SEK (-0.13).

Interim Report for Beijer Electronics Group AB

Comments from CEO Per Samuelsson

"In the second quarter, Beijer Electronics Group consolidated its positive trend. Order intake and sales were up sharply in the period. All the Group's three business entities and all regions are making a contribution and are in good growth. After our adjustment process over recent years, and various marketing, sales and product development initiatives, we have created stability within our organization, which is now starting to produce tangible results.

In the current phase, we have prioritized growth to achieve our long-term targets. Growth generates results, and to date, we have delivered as planned. Sales were up by 17% in the first half-year, which is having a big impact on our earnings. This is evidence of the pay-off we gain from increased volumes. In combination with better gross margins and control of our overheads, our EBIT margin expanded from 1.5% to just over 5% in the first half-year, which is in the right direction towards a margin of at least 10%.

The Beijer Electronics business entity is providing a significant part of the Group's recovery, which I'm delighted about, considering the major restructuring it has undergone. To date, Beijer Electronics has succeeded in coping with an altered market outlook, developed a new product range that has been well received on the market, rationalized its production and logistics, implemented a new marketing and sales organization, is addressing new segments and has won new customers. The effects are now apparent in high growth of order intake and sales, and significantly better EBIT in the first half-year and second quarter. As our largest business entity, Beijer Electronics is an important part of the Group's long-term value creation.

The Westermo business entity continued to make strong progress, with growth of some 20% in the second quarter, and EBIT almost doubling. This progress demonstrates Westermo's competitiveness on a high-growth market. But simultaneously, this growth is presenting the business entity with challenges, because production capacity needs to be expanded during the current global shortage of electronic components. This may temporarily impact deliveries and cause fluctuations in earnings between quarters, albeit without altering the long-term positive trend.

The Korenix business entity secured a significant order of 5 MSEK from the Taiwan Department of Transportation, for wireless communication solutions in the Smart City concept for Taipei city buses. The deal also includes Beijer Electronics HMIs. We view this deal as evidence that Korenix's new organization and improved strategy are steps in the right direction. Korenix did achieve some growth in the second quarter, but an unfavorable product mix and continued marketing and product development initiatives meant that the entity did report a loss. But Korenix is focused on recovery in 2018, and aims to achieve profitability in 2019.

The Beijer Electronics business entity is providing a significant part of the Group's recovery, which I'm delighted about, considering the major restructuring it has undergone.

per samuelsson, president & ceo

For the Group overall, we are basically following the plan we have set and our new strategy is generating tangible positive effects. I'm satisfied that all three business entities are now working actively on solutions for the burgeoning market for the Industrial Internet of Things (IIoT). Sales and earnings in the first half-year were up sharply on the corresponding period of 2017. We think that again in the second half-year, the Group can increase sales and earnings on the corresponding period of 2017".

The Group in the second quarter

The Group's order intake kept progressed strongly in the second quarter 2018. The increase of 21% to 371.4 MSEK (306.6) was broad based, and the Group's three business entities achieved robust increases. Korenix's order intake increased by 19%, Westermo's was up by 23%, and Beijer Electronics' by 18%. Adjusted for currency effects, the Group's order intake increased by 19%.

The Group's sales increased by 19% to 360.8 MSEK (304.0). Adjusted for currency effects, sales were up by 17%.

The Group's EBITDA increased by 57% to 36.4 MSEK (23.3). Depreciation and amortization were 18.5 MSEK (16.8). EBIT rose to 18.0 MSEK (6.5), equating to an EBIT margin of 5.0% (2.1). The earnings improvement is due to higher sales volumes, good cost control, and positive currency effects of 5 MSEK. Total development expenditure amounted to 41.4 MSEK (38.8), corresponding to 11.5% (12.8) of Group sales.

Profit before tax increased to 16.9 MSEK (0.8). Net financial income/expense was -1.1 MSEK (-5.6). The improved net financial income/expense is due to the rights issue executed in 2017, more positive financing terms, and 1.7 MSEK of exchange rate gains. Profit after estimated tax was 10.5 MSEK (0.8). A relatively high tax charge in the quarter is due to tax on extra dividends paid by subsidiaries in Asia. Earnings per share after estimated tax amounted to 0.36 SEK (0.02).

First half-year

Order intake increased by 23% to 769.1 MSEK (624.8) in the first six months of the year. Sales rose by 17% to 697.6 MSEK (594.2).

The Group's EBITDA was up by 70% to 72.2 MSEK (42.3). Depreciation and amortization were 36.1 MSEK (33.3). EBIT increased to 36.0 MSEK (9.0), equivalent to an EBIT margin of 5.2% (1.5). Total development expenditure was 79.5 MSEK (75.1), or 11.4% (12.6) of Group sales.

The profit/loss before tax increased to 31.6 MSEK (-3.5). The net financial income/expense was -4.4 MSEK (12.5). The profit/loss after estimated tax increased to 20.1 MSEK (-3.0). The relatively high tax charge in the halfyear is due to a cautious assessment of loss carry-forwards, minor restatements from the previous year, as well as tax on dividends from subsidiaries in Asia. Earnings per share after estimated tax amounted to 0.70 SEK (-0.13).

	Sales Quarter 2		EBIT Quarter 2		Sales 6 mth.		EBIT 6 mth.
MSEK	1806	1706	1806	1706	1806	1706	1806	1706
Beijer Electronics	192.3	163.6	12.7	3.7	365.4	326.4	21.2	5.6
Westermo	142.6	117.7	19.6	10.0	278.6*	224.0	40.5	20.8
Korenix	30.0	28.5	-2.4	0.9	61.4	54.3	-2.0	-1.6
Intra-group sales	-4.1	-5.8			-7.8*	-10.5
Group adjustments and parent company			-11.9	-8.1			-23.7	-15.8
Beijer Electronics Group	360.8	304.0	18.0	6.5	697.6	594.2	36.0	9.0

Business entity net sales and EBIT

*Including adjustment of intra-group sales from quarter 1 with 2.3 msek.

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 EBIT. The curve and righthand scale show rolling four quarter EBIT.

Group net sales

The Westermo business entity continued its success in the second quarter, with progress offering yet more evidence of its competitiveness.

per samuelsson, president & ceo

Beijer Electronics Business entity

In the second quarter, the Beijer Electronics business entity secured its positive trend of the first quarter. Order intake and sales increased sharply, and EBIT continue to improve at a good pace.

The upturn is also broad-based, with good order intake and sales growth across all regions. The US maintained its brisk growth, with especially good demand from the oil & gas sector. In Europe, the stand-outs were the UK and Turkish markets. Some recovery was apparent in the Nordics. Asia reported sales growth of 26%, with China being especially strong. 700 900 1000 1100

The new X2 extreme terminal is leaving a growing impression in order intake and sales. Overall, the new X2 series represented some one-third of the business entity's sales in the period, which underscores the competitiveness of these products on the market. 400 500

The business entity's new strategy and major adjustment of its organization is now starting to have concrete results. New products with higher software content and a new, more customer-oriented sales organization have left tangible effects on sales growth, which is exclusively 0 100

0 25 50 75 100 125 150 175 200 225 250 0 100 200 300 400 500 600 700 800 900 1 2 3 4 1 2 3 4 1 2 2016 2017 2018 MSEK Rolling four quarters MSEK Quarter

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. organic. A combination of a higher share of proprietary products with higher margins, and cost savings in production and logistics, had a positive impact on gross margins.

Overall, this transition has resulted in a rapid improvement in EBIT margin. With continued growth, our EBIT margin target is within reach.

Product development has also been intensive—a test phase of our new Fast-track-to-the-cloud solution including BoX2 was initiated with 20 different customers in the second quarter. This solution integrates soft and hardware and is an IoT solution with easy connections to existing automation equipment. The plan is to launch the new solution commercially in the fourth quarter.

Second quarter

Order intake was up by 18% to 188.4 MSEK (159.3). Sales increased by 18% to 192.3 MSEK (163.6). EBITDA more than doubled to 19.4 MSEK (9.6). Depreciation and amortization were 6.6 MSEK (6.0). EBIT rose to 12.7 MSEK (3.7), equivalent to a margin of 6.6% (2.2). This major improvement is due to rising sales volumes and a wider gross margin, as well as good cost control.

First half-year

Order intake rose by 18% to 380.1 MSEK (321.7). Sales were up by 12% to 365.4 MSEK (326.4). EBITDA was up to 33.5 MSEK (17.2). Depreciation and amortization were 12.3 MSEK (11.6). EBIT increased to 21.2 MSEK (5.6), equivalent to an EBIT margin of 5.8% (1.7).

Westermo Business entity

The Westermo business entity continued its success in the second quarter, with progress offering yet more evidence of its competitiveness. The primary drives of the high growth is still healthy demand in the Rail side in IP Trains, but other segments are also making positive progress. It is noteworthy that the order intake gains of over 20% in the second quarter did not include any really large single orders like that from French train producer Alstom in the first quarter. Adjusted for this order, the second quarter was Westermo's best single quarter to date in terms of order intake, and the business entity's rolling four-quarter sales now exceed half a billion Swedish kronor.

In the first half-year, sales growth was 24%. This high growth has provided a good pay-off, with EBIT virtually doubling in the first and second quarters.

The business entity's new sales organization, implemented in December 2017, is gradually being fine-tuned. Against the background of the business entity's high growth, this organization is facing several challenges. There is a component shortage around the world. Accordingly, bottlenecks among suppliers and in manufacture need to be addressed, while various capacity shortages need to be overcome. This may temporarily impact deliveries and cause fluctuations in earnings between quarters, albeit without altering the long-term positive trend.

Second quarter

Order intake increased by 23% to 154.8 MSEK (126.0). Sales rose by 21% to 142.6 MSEK (117.7). EBITDA was up by 66% to 26.1 MSEK (15.7). Depreciation and amortization amounted to 6.5 MSEK (5.7). EBIT almost doubled to 19.6 MSEK (10.0), equivalent to an EBIT margin of 13.7% (8.5). The sharp earnings improvement is due to rising sales volumes.

First half-year

Order intake was up by 29% to 331.4 MSEK (257.0). Sales rose by 24% to 278.6 MSEK (224.0). EBITDA was up by 67% to 53.8 MSEK (32.3). Depreciation and amortization amounted to 13.3 MSEK (11.5). EBIT increased by 95% to 40.5 MSEK (20.8), equivalent to an EBIT margin of 14.6% (9.3).

Net sales, Westermo

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's new organization, with its new management and improved strategy, achieved some notable successes in the second quarter. Korenix secured a major order for the business entity, of 5 MSEK, from the Taiwan Department of Transportation. This breakthrough order is for solutions in the Smart City concept for wireless communication for Taipei city buses. The order also includes Beijer Electronics HMIs.

Korenix was also able to report some sales growth. However, the product mix of shipments did imply lower gross margins in the period. In combination with continued marketing, sales and development initiatives, earnings were negatively impacted.

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

Second quarter

Korenix's order intake was up by 19% to 32.2 MSEK (27.0) in the second quarter. Sales were up by 5% to 30 MSEK (28.5). EBITDA amounted to 0.8 MSEK (3.7). Depreciation and amortization amounted to 3.2 MSEK (2.8). EBIT was -2.4 MSEK (0.9).

First half-year

Korenix's order intake increased by 16% to 65.3 MSEK (56.5). Sales rose by 13% to 61.4 MSEK (54.3). EBITDA was 4.2 MSEK (3.9). Depreciation and amortization were 6.2 MSEK (5.5). EBIT was -2.0 MSEK (-1.6).

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 53.0 MSEK (41.9) in the first six months of the year. Cash flow from operating activities was 31.9 MSEK (-4.3). Equity was 646.2 MSEK (391.3) on 30 June 2018. The equity ratio was 42.7% (27.9). Cash and cash equivalents were 88.3 MSEK (74.4). Net debt was 441.0 MSEK (634.2). The average number of employees was 705 (686).

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.

We view Korenix's Smart City order as corroboration that our new organization and improved strategy are steps in the right direction.

per samuelsson, president & ceo

Prospects for the full year 2018

Beijer Electronics Group shows significantly improved sales and earnings in the first half of the year. For the second half of 2018, the Group is expecting to report higher sales and earnings than corresponding period of last year.

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.

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

Malmö, Sweden, 13 July 2018 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

Per Samuelsson President and CEO

Bo Elisson Chairman of the Board Ulrika Hagdahl Board member

Johan Wester Board member

Lars Eklöf Board member Karin Gunnarsson Board member

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 begun in collaboration with external expertise. The ealiest the preliminary conclusions are scheduled to be available is coincident with publication of the Interim Report for January-September 2018.

Interim Report in Summary

Income Statement—Group

SEK 000	Quarter 2, 2018	Quarter 2, 2017	6 mth. 2018	6 mth. 2017	Full year, 2017
Net sales	360,806	303,999	697,604	594,223	1,205,912
Other operating revenue	1,044	-14	5,314	-1,901	-82
Operating expenses excluding depreciation and amortisation	-325,415	-280,723	-630,764	-549,979	-1,115,504
Operating profit before depreciation and amortization	36,435	23,262	72,154	42,343	90,326
Amortization, intangible assets	-14,271	-12,534	-27,575	-24,672	-55,090
Depreciation, property, plant and equipment	-4,199	-4,238	-8,546	-8,654	-17,220
Operating profit	17,965	6,490	36,033	9,017	18,016
Net financial items	-1,083	-5,648	-4,430	-12,493	-21,853
Profit before tax	16,882	842	31,603	-3,476	-3,837
Estimated tax	-6,382	-14	-11,544	467	-2,373
Net profit	10,500	828	20,059	-3,009	-6,210
Attributable to equity holders of the parent	10,315	556	19,912	-3,591	-6,988
Attributable to minority interest	185	272	147	582	778
Earnings per share, SEK (comparative figure restated for rights issues)	0.36	0.02	0.70	-0.13	-0.24

Comprehensive Income
SEK 000	Quarter 2, 2018	Quarter 2, 2017	6 mth. 2018	6 mth. 2017	Full year, 2017
Net profit	10,500	828	20,059	-3,009	-6,210
Actuarial gains and losses	-3,067	-2,002	-3,067	-2,002	-13,267
Translation differences	24,391	-30,847	45,177	-18,648	-27,236
Comprehensive income	31,824	-32,021	62,169	-23,659	-46,713
Attributable to equity holders of the parent	31,471	-31,979	61,712	-24,080	-47,161
Attributable to non-controlling interest	353	-42	457	421	448

Balance Sheet—Group

SEK 000	Jun 30, 2018	Jun 30, 2017	Dec 31, 2017
Assets
Intangible assets	788,131	759,092	754,571
Tangible assets	95,850	84,691	84,947
Financial assets	57,460	62,235	55,117
Current assets	497,481	443,000	435,304
Cash equivalents and short-term investments	88,327	74,443	89,281
Total assets	1,527,249	1,423,461	1,419,220
Liabilities and shareholders' equity
Shareholders' equity	646,192	391,309	585,015
Minority share of shareholders' equity	5,411	6,194	6,221
Long-term liabilities	499,565	499,838	511,112
Current liabilities	376,081	526,120	316,872
Total liabilities and shareholders' equity	1,527,249	1,423,461	1,419,220
Of which interest-bearing liabilities	529,336	708,676	506,662

Statement of Changes to Shareholders' Equity

SEK 000	Jun 30, 2018	Jun 30, 2017	Dec 31, 2017
Attributable to equity holders of the parent
Opening equity, 1 Jan., as in adopted Balance Sheet	585,015	415,389	415,389
Rights issue	-78		216,733
Share-based payment	343		54
Repurchase of treasury shares	-11
Acquisitions	-789
Comprehensive Income	61,712	-24,080	-47,161
Closing equity	646,192	391,309	585,015
Non controlling interests
Opening equity, 1 Jan.	6,221	5,773	5,773
Acquisitions	-1,267
Comprehensive income	457	421	448
Closing equity	5,411	6,194	6,221

Key Figures–Group

	Jun 30, 2018	Jun 30, 2017	Dec 31, 2017
Operating margin, %	5.2	1.5	1.5
Profit margin, %	2.9	-0.5	-0.5
Equity ratio, %	42.7	27.9	41.7
Equity per share, SEK (comparative figure restated for rights issues)	22.6	13.7	20.5
Earnings per share, SEK (comparative figure restated for rights issues)	0.70	-0.13	-0.24
Return on equity after tax, %	3.2	-19.5	-1.2
Return on capital employed, %	4.1	2.1	1.7
Return on net operating assets, %	5.8	3.1	2.5
Average number of employees	705	686	702

Cash Flow Statement–Group

SEK 000	Jun 30, 2018	Jun 30, 2017	Dec 31, 2017
Cash flow from operating activities before
changes in working capital	56,722	20,603	61,765
Change in working capital	-24,862	-24,904	-13,904
Cash flow from operating activities	31,860	-4,301	47,861
Cash flow from investing activities	-52,976	-41,879	-79,400
Cash flow from finance activities	15,083	16,396	17,795
Change in cash equivalents	-6,033	-29,784	-13,744
Cash equivalents and short-term investments,
opening balance	89,281	107,228	107,228
Exchange rate change, cash equivalents	5,079	-3,001	-4,203
Cash equivalents and short-term investments,
closing balance	88,327	74,443	89,281

Operating Segments

SEK 000	Quarter 2,	Quarter 2,	6 mth.	6 mth.	Full year,
	2018	2017	2018	2017	2017
Net sales
Beijer Electronics	192,322	163,550	365,378	326,421	659,059
Westermo	142,556	117,743	278,583*	223,957	461,155
Korenix	29,990	28,481	61,356	54,299	104,198
Group adjustments	-4,062	-5,775	-7,713*	-10,454	-18,500
Group	360,806	303,999	697,604	594,223	1,205,912
Operating profit before depreciation and amortization
Beijer Electronics	19,386	9,645	33,487	17,174	36,577
Westermo	26,122	15,737	53,827	32,294	69,548
Korenix	764	3,697	4,174	3,903	5,588
Parent company	-8,830	-6,379	-17,103	-12,251	-22,782
Group adjustments	-1,007	562	-2,231	1,223	1,395
Group	36,435	23,262	72,154	42,343	90,326
Operating profit
Beijer Electronics	12,741	3,679	21,163	5,550	12,544
Westermo	19,578	9,990	40,540	20,756	46,583
Korenix	-2,402	947	-2,043	-1,565	-9,934
Parent company	-10,945	-8,370	-21,365	-16,232	-30,877
Group adjustments	-1,007	244	-2,262	508	-300
Group	17,965	6,490	36,033	9,017	18,016

*Including adjustment of intra-group sales from quarter 1 with 2,258 ksek.

Revenue
SEK 000	Quarter 2,	Quarter 2,	6 mth.	6 mth.	Full year,
	2018	2017	2018	2017	2017
Geographical market
Sweden	46,307	41,228	94,376	85,155	171,252
Rest of Nordics	38,020	30,769	69,718	66,662	137,413
Germany	24,059	21,501	48,343	44,831	93,992
UK	21,641	15,481	48,095	33,202	71,155
France	13,700	11,749	25,014	21,158	40,595
Turkey	9,504	5,805	17,112	12,367	29,221
Rest of Europe	51,692	44,416	98,158	84,827	168,810
USA	75,877	63,328	143,198	111,584	218,734
Taiwan	18,509	20,235	40,745	41,857	78,195
China	26,048	21,408	46,364	36,375	70,896
Rest of Asia	23,655	19,346	43,060	38,377	85,159
Rest of world	11,795	8,733	23,422	17,828	40,490
Group	360,806	303,999	697,604	594,223	1,205,912
Category
Operator panels and accessories	167,591	142,566	319,048	282,067	573,868
Network equipment	168,732	140,159	332,708	267,881	547,842
Other products and services	24,483	21,274	45,848	44,275	84,202

Group 360,806 303,999 697,604 594,223 1,205,912

Income Statement—Parent Company

SEK,000	Quarter 2 2018	Quarter 2 2017	6 mth. 2018	6 mth. 2017	Full year, 2017
Net turnover	8,330	7,942	16,658	15,884	31,767
Operating expenses	-19,275	-16,312	-38,023	-32,116	-62,644
Operating profit	-10,945	-8,370	-21,365	-16,232	-30,877
Net financial items*	7,690	-8,963	9,519	-14,359	-21,390
Profit before tax	-3,255	-17,333	-11,846	-30,591	-52,267
Appropriations					53,000
Estimated tax	51	3,702	1,648	6,507	75
Net profit	-3,204	-13,631	-10,198	-24,084	808
*of which dividend from subsidiaries	1,417	0	1,417	0	1,056

Balance Sheet—Parent Company

SEK 000	Jun 30, 2018	Jun 30, 2017	Dec 31, 2017
Assets
Fixed assets	772,745	734,435	759,718
Current assets	13,921	12,463	25,605
Cash equivalents and short-term investments	1,166	1,166	1,166
Total assets	787,832	748,064	786,489
Liabilities and shareholders' equity
Shareholders' equity	286,642	54,907	296,586
Long-term liabilities	390,852	394,944	414,178
Current liabilities	110,338	298,213	75,725
Total liabilities and shareholders' equity	787,832	748,064	786,489
Of which interest-bearing liabilities	411,009	609,952	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				-10,198	-10,198
Total changes to net worth, exc. transactions with company's shareholders	9,534	7,034	280,018	-10,198	286,388
Rights issuea	11		-89		-78
Repurchase of treasury shares			-11		-11
Share-based payment			343		343
Closing equity, 30 Jun. 2018	9,545	7,034	280,261	-10,198	286,642

a
No. of shares, 1 Jan. 2018	28,601,379
Shares issued in current rights issue	34,657
No. of shares, 30 Jun. 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: info@beijergroup.com

Financial Calendar

24 October 2018Nine-month Interim Report
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

Attractive order from the Taiwan Department of Transportation

A new success for the Korenix business entity. In June, Korenix won a 5M SEK order for vehicle management on Taipei's city busses from the Taiwan Department of Transportation. Korenix Jet I/O and JetBox equipment monitors and records vehicle real-time data such as GPS, tachometer, brake, etc. and transmits it over Wi-Fi or wireless communication to the service center for vehicle management. The order also includes Beijer Electronics HMIs for data presentation. The vehicle management solution is a perfect fit for Taiwan's container trucks and freight car fleet and may lead to significant order volumes of Korenix equipment in the future.

Read more at www.korenix.com

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