Beijer Electronics Group — Interim / Quarterly Report 2020

Oct 27, 2020

1 JANUARY–30 SEPTEMBER 2020

Impact of Covid-19 continues, but signs that the bottom has passed

Third quarter

• Order intake amounted to 310 MSEK (405).
• Net sales were 335 MSEK (391).
• EBIT of 4.7 MSEK (29.9). Currency effects had a negative -8.4 MSEK impact on earnings.
• Profit after tax of 1.2 MSEK (18.8).
• Earnings per share amounted to 0.05 SEK (0.65).

Nine months

• Order intake amounted to 1,052 MSEK (1,150).
• Net sales of 1,088 MSEK (1,143).
• EBIT before structural expenses of 36.0 MSEK (81.5). Structural expenses amounted to 15 MSEK. After structural expenses, EBIT was 21.0 MSEK.
• Profit after tax amounted to 5.6 MSEK (52.5).
• Earnings per share of 0.21 SEK (1.83).
• Westermo signed a supply agreement with estimated value of 80 MSEK.
• Restructuring program implemented, generating annualized savings of 40-45 MSEK.

Interim Report for Beijer Electronics Group AB

Comments from CEO Per Samuelsson

"Our financial performance for the third quarter was in line with what we indicated in our Half-year Interim Report. The effects of Covid-19 continued to feature in beijer group's business, negatively impacting the Group's order intake, sales and earnings.

We were early in mitigating the effects of Covid-19, which primarily, affected demand on the market, and thus the Group's sales volumes. In March, we decided on a program of measures to reduce overheads by 25-30 MSEK this year and 40-45 MSEK annualized thereafter. We took action to strengthen our liquidity. Meanwhile, we were eager to safeguard our selective product development initiatives, and maintain customer activities at a high level.

While clearly, the loss of sales volumes is having an inevitable impact on EBIT for the short term, our actions are having the intended effect. The program of measures concluded at the beginning of the third quarter, and has reduced overheads, thus arresting the EBIT downturn. Meanwhile, due to a stronger Swedish krona, EBIT was impacted by negative currency effects totaling 16 MSEK during the second and third quarters. Nevertheless, the Group is still reporting positive earnings. Cash flow increased in the first nine months of the year compared to the corresponding period of 2019. The Group's financial position is healthy. Readers should also note that we have not lost any accounts, and so far, have not experienced any significant customer losses in accounts receivable.

In this context, I'd like to point out that we're obviously not satisfied with our current sales and earnings levels, which essentially, are due to external factors that we now have the experience to deal with. As the negative effects of the pandemic gradually taper off, we have good potential to return to our growth target of 7% and our earnings target of a minimum EBIT margin of 10% fairly quickly.

There are also clear signs that we passed the bottom in the third quarter. The order intake of the Beijer Electronics and Korenix business entities increased in the third quarter compared to the second. Although Westermo's order intake did reduce, this business entity did secure a number of major orders, and we still see good potential in the coming quarters.

Despite what are challenging market conditions at present, we are continuing to build a stronger organization. What the Group and business entities all share is holding our organization intact, keeping our focus on product development and maintaining a high level of customer activities. Our organization has done great work on its digital seminars, customer encounters and meetings.

We're coming out of Q3 with an unchanged healthy financial position.

per samuelsson, president & ceo.

In the quarter, Westermo opened an extension of its production plant at Stora Sundby, offering room to further increase manufacturing capacity going forward. Product development and initiatives in the new power distribution and rail infrastructure segments are going as planned. The integration of acquired company Neratec has gone smoothly and is now complete. The integration of Virtual Access is also progressing well.

Beijer Electronics commenced batch shipments of display solutions to Otis in the third quarter. Deliveries will gradually increase, contributing to sales and earnings. This business entity also passed a milestone in the period, when total sales of the X2 series since launch in fall 2016 passed 1 billion SEK.

The partnership between Beijer Electronics and Korenix has evolved and is continuing as planned. Developments include Korenix now being able to use Beijer Electronics' distribution warehouse in Malmö. Korenix is in the final phase of its new and upgraded product range, which will be launched progressively from late-2020.

We are maintaining our long-term strategy. The pandemic is also likely to accelerate digitalization, and favor beijer group. We reiterate our positive view of the market in the longer term, and this has actually accentuated. We will

emerge stronger from this crisis, with a smooth-functioning and even leaner organization, and remain attractive to employees and customers. By focusing on product development, we will also have a broader-based and regenerated product program.

Uncertainty remains substantial, even if we believe we've put the worst behind us. Rising Covid-19 infection rates, mainly in Europe and the US, do remain a cause for some concern. Overall, this means that beijer group will not be making any assessments regarding underlying financial performance for the full year 2020."

The Group in the third quarter

The Group's order intake was 310 MSEK (405) in the third quarter 2020. Adjusted for acquisitions, order intake reduced by 30%. The order intake of all the Group's three business entities decreased on the previous year. Compared to the second quarter, Beijer Electronics' and Korenix's order intake increased, while Westermo's decreased.

The Group's sales decreased to 335 MSEK (391). Adjusted for acquisitions, sales were down by 25%. Including acquisitions, Westermo's sales were unchanged, while Beijer Electronics' and Korenix's reduced.

	Sales Quarter 3			EBIT Quarter 3		Sales 9 mth.		EBIT 9 mth.
MSEK	2020	2019	2020	2019	2020	2019	2020	2019
Westermo	181.9	182.8	15.6	26.0	586.0	505.9	70.6	67.3
Beijer Electronics	136.5	180.0	-4.5	12.3	453.4	562.4	-11.01	44.3
Korenix	19.8	33.3	-1.4	-0.7	59.2	93.4	-13.82	-1.6
Intra-group sales	-3.5	-4.7			-11.1	-18.3
Group adjustments and parent company			-5.0	-7.7			-24.8	-28.5
beijer group	334.7	391.4	4.7	29.9	1,087.5	1,143.4	21.03	81.5

Business entity net sales and EBIT

1 Including restructuring expense of 11.0 MSEK.

Including restructuring expense of 2.8 MSEK.

Including restructuring expense of 15.0 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 right-hand scale show rolling four quarter EBIT. The dashed bar and line for Q1 2020 is excluding restructuring expenses of 15 MSEK.

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

The Group's EBITDA was 43.1 MSEK (63.1). Depreciation and amortization was 38.4 MSEK (33.1). EBIT was 4.7 MSEK (29.9), corresponding to an EBIT margin of 1.4% (7.6). Earnings were impacted by 8.4 MSEK of negative currency effects due to a stronger Swedish krona. Total development expenditure was 38.1 MSEK (41.2), or 11.4% (10.5) of Group sales.

Profit before tax was 0 MSEK (26.1). Net financial income/expense was -4.7 MSEK (-3.8). Profit after estimated tax was 1.2 MSEK (18.8). Earnings per share after estimated tax were 0.05 SEK (0.65).

First nine months

The Group's order intake was 1,052 MSEK (1,150) in the first nine months of the year. Adjusted for acquisitions, order intake decreased by 18%. Westermo increased its order intake including acquisitions. Beijer Electronics' and Korenix's order intake reduced.

The Group's sales were 1,088 MSEK (1,143). Adjusted for acquisitions, sales decreased by 15%. Westermo's sales including acquisitions increased, while Beijer Electronics' and Korenix's reduced.

The Group's EBITDA was 131.6 MSEK (171.3). Depreciation and amortization was 110.6 MSEK (89.8). EBIT was 21.0 MSEK (81.5), equivalent to an EBIT margin of 1.9% (7.1). Earnings were charged with restructuring expenses of 15 MSEK. Excluding restructuring expenses, earnings were 36.0 MSEK, equivalent to an EBIT margin of 3.3%. Earnings were also affected by negative currency effects of some 13 MSEK. Total development expenditure was 138.7 MSEK (128.1), or 12.8% (11.2) of the Group's sales.

Profit before tax was 7.6 MSEK (72.9). Net financial income/expense was -13.4 MSEK (-8.6). Profit after estimated tax was 5.6 MSEK (52.5). Earnings per share after estimated tax were 0.21 (1.83).

The integration of acquired company Neratec has gone smoothly and is now complete.

per samuelsson, president & ceo.

Westermo Business entity

The Westermo business entity was impacted more tangibly by the effects of Covid-19 in the third quarter. Lower activity among customers, accentuated by the vacation period, meant reduced purchasing and deferred investments, which impacted demand negatively.

The reduced demand mainly affected Westermo's order intake. Meanwhile acquisitions, especially Neratec, made a positive contribution to order intake. Bright spots included some large orders from Alstom and one project in Malaysia in the period. The fourth quarter has also started somewhat more positively with a good number of orders.

Sales in the quarter were unchanged, with the market offering a mixed view. In the Nordics, Sweden and Finland fared well. Southeast Asia is stable, while business is slower in China. Demand in the USA is fairly good, while the situation in the UK and France is tougher.

Last year's acquisitions made a positive contribution to sales. Adjusted for acquisitions, Westermo's sales were down by 23%. The volume loss impacted EBIT negatively. Acquisitions made a positive contribution to earnings, but did not compensate for the rest of the earnings downturn.

The integration of acquired company Neratec has gone smoothly and is now complete. This company has progressed well. The integration of Virtual Access is continuing as planned.

In the quarter, Westermo opened a new extension of its plant at Stora Sundby, which has freed up premises in the production facility, offering scope to further increase manufacturing capacity efficiently.

Third quarter

Order intake amounted to 164 MSEK (214), of which acquisitions represented 37 MSEK (15). Sales were unchanged at 182 MSEK (182). Adjusted for acquisitions, sales decreased by 22%. EBITDA decreased to 32.7 MSEK (38.7). Depreciation and amortization was 17.2 MSEK (12.7). EBIT was 15.6 (26.0), equating to an EBIT margin of 8.6% (14.2).

Nine months

Order intake increased by 4% to 564 MSEK (542). Excluding acquisitions, order intake decreased by 17%. Sales increased by 16% to 586 MSEK (506). Adjusted for acquisitions, sales were 454 MSEK. EBITDA increased to 117.9 MSEK (99.0). Depreciation and amortization was 47.4 MSEK (31.7). EBIT increased by 5% to 70.6 MSEK (67.3), equivalent to an EBIT margin of 12.0 % (13.3).

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

Beijer Electronics Business entity

The Beijer Electronics business entity saw a similar pattern in the third quarter as during the second. Lower activity among customers, deferred orders, inventory adjustments for reasons including safeguarding cash flow and delayed investments, meant demand was clearly down. This affected the business entity's order intake, which fell by over 20%. The operations in the USA were hardest hit, while the downturns in Europe and Asia were moderate. However, order intake in the third quarter was higher than in the second, which is a sign that the bottom has been passed.

Sales decreased across many markets, and the downturn was a total of 24%. The substantial loss of sales volumes hit earnings hard. The program of measures initiated in the first quarter concluded in the second, and had the intended effect during the third. In the short term, these savings compensated for the lower gross profit without Beijer Electronics reporting an operating loss in the quarter. But this program, intended to protect the business entity's future skills and capacity, will result in further savings, which will reduce the business entity's overhead level for the long term.

After initial pilot shipments to Otis, batch shipments got underway during the third quarter. The collaboration with Otis has gone well, and will make a progressively increasing contribution to the business entity's sales and earnings. The agreement with Otis, signed at the end of December 2019, means that Beijer Electronics will deliver display solutions for one of Otis's elevator product lines.

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. One milestone in the period was that total sales of the X2 series, launched at the end of 2016, passed 1 billion SEK. This makes it the business entity's most successful product launch on the market to date. Sales of the X2 series represented 60% of revenue during the first nine months of the year.

The partnership with the Korenix business entity has continued as planned, and also intensified. In Europe particularly, Korenix can benefit from Beijer Electronics' sales channels. Both business entities have also coordinated supply chains in Europe and Taiwan, and Korenix is now using Beijer Electronics' European distribution warehouse.

Third quarter

Order intake was 128 MSEK (165). Sales were 137 MSEK (180). EBITDA was 9.8 MSEK (25.3). Depreciation and amortization was 14.2 MSEK (13.0). EBIT was -4.5 MSEK (12.3), equivalent to an EBIT margin of -3.3% (6.8).

Nine months

Order intake was 436 MSEK (534). Sales were 453 MSEK (562). EBITDA was 31.1 MSEK (80.7). Depreciation and amortization was 42.2 MSEK (36.4). EBIT was -11.0 MSEK (44.3), equivalent to an EBIT margin of -2.4% (7.9). Earnings were charged with restructuring expenses of 11.0 MSEK, and adjusted for these expenses, earnings were 0 MSEK.

One milestone in the period was that total sales of the X2 series, launched at the end of 2016, passed 1 billion SEK. This makes it the business entity's most successful product launch on the market to date.

per samuelsson, president & ceo.

Korenix Business entity

Korenix's business still featured the effects of Covid-19 in the third quarter. Order intake and sales were down significantly on the corresponding period of 2019. But at the same time, there were some bright spots, and signs that the bottom has been passed. Order intake in the third quarter was up on the second quarter, which meant that the downturn was checked.

Korenix also signed a contract with Tai Power to deliver digital communication solutions. Shipments relating to switchgear for control and monitoring operations will continue for several years.

The restructuring program adopted at the end of March is now complete, and contributed to overheads reducing by 39%. In turn, this meant the loss in the third quarter was significantly lower than during the second.

Investments in a new modular and scalable hardware platform, and new software, also continued as planned. The plan is that this new and upgraded product program will progressively launch from the end of 2020. The partnership with the Beijer Electronics business entity has continued and intensified, especially in Europe. Korenix can now benefit from Beijer Electronics' sales channels. Both business entities have also coordinated supply chains in Europe and Taiwan, and Korenix is now using Beijer Electronics' European distribution warehouse.

Third quarter

Order intake was 22 MSEK (31), and sales were 20 MSEK (33). EBITDA was 1.8 MSEK (3.0). Depreciation and amortization was 3.2 MSEK (3.7). EBIT was -1.4 MSEK (-0.7).

Nine months

Order intake was 62 MSEK (92). Sales were 59 MSEK (93). EBITDA was -3.9 MSEK (9.1). Depreciation and amortization was 9.9 MSEK (10.7). EBIT was -13.8 MSEK (-1.6). Earnings were charged with restructuring expenses of 2.8 MSEK, and adjusted for these expenses, the business entity reported a loss of -11.0 MSEK.

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 64 MSEK (125) in the first nine months of the year. Cash flow from operating activities was 120 MSEK (90). Equity was 693 MSEK (711) on 30 September 2020. The equity ratio was 34.8% (39.5). Cash and cash equivalents were 125 MSEK (102). Net debt was 737 MSEK (616). The average number of employees was 793 (743).

Issue of class C shares

In March, the Board of Directors decided to issue 66,298 class C shares with a quotient value of SEK 0.33, in accordance with authorization from the AGM 2019. 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 2022 is to convert them to ordinary shares, pursuant to the terms and conditions of the LTI 2019/2022 incentive program. After the completed repurchase of class C shares, there are 28,852,400 shares, of which 28,627,219 ordinary shares and 225,181 class C shares, equivalent to a total of 28,649,737 votes.

Summary of measures against Covid-19

beijer group operates globally, and has proprietary development, manufacture and sales in 18 countries. The Group complies with legislation, regulation, guidelines and recommendations on Covid-19 produced locally and in each country.

beijer group puts people's health and safety first, and consequently, has implemented internal measures Group wide affecting staff and relationships with customers. These actions include social distancing to reduce the spread of infection of Covid-19. Wherever possible, staff work remotely, and from home. Guidelines to maintain distance apply at workplaces. Customer contacts are possible without physical meetings. Meetings, conferences, travel, trade events etc. have been cancelled. The aim is to maintain operations as far as possible.

Several of the countries where the Group operates have adopted various support programs for their business communities. Where necessary, the Group has used, and will continue to use, them to avoid further downsizing. Cost-based support was 0.9 MSEK in the third quarter. In the first nine months of the year, this support was 6.5 MSEK, divided between six countries. The group has repaid 9 MSEK of previous liquidity support, received in the second quarter. The Group had also received liquidity support of 16 MSEK by the end of the third quarter, of which 5 MSEK is deferred payments of taxes and charges, and 11 MSEK is direct support.

The AGM 2020 resolved to cancel the dividend for the financial year 2019, a precautionary measure to protect the Group's financial stability for the short and long term. As a further precautionary measure, the Group has also arranged an increased credit facility to provide a liquidity buffer if necessary going forward.

beijer group is monitoring prevailing market conditions, and will adapt its cost level if it considers this necessary, while safeguarding long-term skills is also important. Its ambition is that once the crisis is over, the organization will be strong and intact, and remain attractive to employees and customers.

Significant events

Through its Westermo business entity, beijer group signed a supply agreement with one of the largest train companies in North America, with an estimated value of 80 MSEK. This order is for industrial Ethernet switches to upgrade the customer's whole freight train fleet with data networks for safety and video surveillance systems. Shipments from Westermo will start immediately, with installations scheduled for completion in 2021.

In March, the Board of Directors decided on a program of measures involving staff downsizing by some 40 employees in the Korenix and Beijer Electronics business entities. Most of these layoffs were in Taiwan, with some in Sweden. The expenses for this program were 15 MSEK, which were charged to earnings for the first quarter of 2020. Estimated savings are 25-30 MSEK in 2020, followed by 40-45 MSEK annualized.

In March, the Board of Directors decided to propose to the AGM 2020 that the dividend for the financial year 2019 would be 0 SEK per share. The previous proposal was 0.50 SEK per share. The Board of Directors' new proposal was a precautionary measure designed to safeguard the Group's financial stability for the short and long term. The Board of Directors also decided to reschedule the AGM from 7 May 2020 to 26 June 2020. This decision is due to more shareholders possibly being able to participate at a postponed AGM. The AGM on 26 June 2020 approved the Board of Directors' proposals.

Outlook for the full year 2020

It is not possible to judge the effect of the spread of the coronavirus on society and the global economy at present. This means that beijer group is not publishing any estimates of underlying financial performance for the full year 2020.

Financial targets for the Group

The Board of Directors has set financial targets for Beijer Electronics Group. The targets are that the Group will have a minimum organic growth rate of 7% per year, and achieve a minimum EBIT margin of 10%, measured as an average over a business cycle.

Malmö, Sweden, 27 October 2020 Per Samuelsson President and CEO

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

This Interim Report for the Group 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 Financial Reporting.

Auditor's report Beijer Electronics Group AB (publ.) reg. no. 556025-1851

Introduction

We have reviewed the condensed interim financial information (interim report) of Beijer Electronics Group AB (publ.) as of 30 September 2020 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, 27 October 2020

Öhrlings PricewaterhouseCoopers AB

Sofia Götmar-Blomstedt
Authorized Public
Accountant

Mikael Nilsson Authorized Public Accountant

Interim Report in Summary

Income Statement—Group

SEK 000	Quarter 3	Quarter 3	9 mth.	9 mth.	Full year
	2020	2019	2020	2019	2019
Net sales	334,749	391,378	1,087,509	1,143,423	1,558,699
Other operating revenue	378	178	-1,046	2,281	3,388
Operating expenses excluding depreciation and amortization	-292,072	-328,485	-954,879*	-974,434	-1,334,842
EBITDA	43,055	63,071	131,584	171,270	227,245
Amortization, intangible assets	-22,098	-17,319	-62,005	-47,539	-65,958
Depreciation, property, plant and equipment	-6,035	-4,863	-17,837	-13,323	-18,278
Amortization, right-of-use assets	-10,219	-10,961	-30,723	-28,917	-39,513
EBIT	4,703	29,928	21,019	81,491	103,496
Net financial items	-4,674	-3,814	-13,453	-8,579	-11,655
Profit before tax	29	26,114	7,566	72,912	91,841
Estimated tax	1,187	-7,347	-1,981	-20,400	-26,869
Net profit	1,216	18,767	5,585	52,512	64,972
Attributable to equity holders of the parent	1,455	18,704	6,007	52,434	64,954
Attributable to minority interest	-239	63	-422	78	18
Earnings per share, SEK	0.05	0.65	0.21	1.83	2.27

* Including restructuring expense of 15,000,000 SEK.

Comprehensive Income

SEK 000	Quarter 3 2020	Quarter 3 2019	9 mth. 2020	9 mth. 2019	Full year 2019
Net profit	1,216	18,767	5,585	52,512	64,972
Actuarial gains and losses	5,562	-8,142	11,123	-15,940	-33,433
Net investment hedge effects	-700	-1,337	-2,557	-1,337	2,811
Translation differences	-11,440	22,132	-7,556	40,044	13,893
Comprehensive income	-5,362	31,420	6,595	75,279	48,243
Attributable to equity holders of the parent	-5,034	31,131	7,012	74,770	47,827
Attributable to non-controlling interest	-328	289	-417	509	416

Balance Sheet—Group

SEK 000	Sept. 30, 2020	Sept. 30, 2019	Dec. 31, 2019
Assets
Intangible assets	1,075,409	853,156	1,088,490
Property, plant and equipment	101,725	103,452	99,706
Right-of-use assets	108,251	108,484	104,209
Financial assets	59,621	62,614	53,129
Current assets	529,688	580,312	574,830
Cash equivalents and short-term investments	125,166	101,970	121,903
Total assets	1,999,860	1,809,988	2,042,267
Liabilities and shareholders' equity
Shareholders' equity	692,949	710,678	684,434
Minority share of shareholders' equity	3,832	4,342	4,249
Long-term liabilities	837,411	630,606	816,404
Current liabilities	465,668	464,362	537,180
Total liabilities and shareholders' equity	1,999,860	1,809,988	2,042,267
Of which interest-bearing liabilities
Borrowing	589,337	455,785	603,462
Pension provisions	163,513	151,986	169,711
Liability related to right-of-use assets	109,581	110,343	105,682
Total	862,431	718,114	878,855

Statement of Changes in Equity–Group

SEK 000	Sept. 30, 2020	Sept. 30, 2019	Dec. 31, 2019
Attributable to equity holders of the parent
Opening balance, shareholders' equity, 1 January	684,434	652,888	652,888
Restatement on transition to IFRS 16		-4,303	-4,303
Rights issue	-54	-29	-29
Share repurchase	-22	-50	-50
Dividend		-14,301	-14,301
Share-based payment	1,579	1,703	2,402
Comprehensive income	7,012	74,770	47,827
Closing balance, shareholders' equity	692,949	710,678	684,434
Attributable to non-controlling interests
Opening balance, 1 January	4,249	3,847	3,847
Restatement on transition to IFRS 16		-14	-14
Comprehensive income	-417	509	416
Closing balance	3,832	4,342	4,249

Key Figures–Group

SEK 000	Sept. 30, 2020	Sept. 30, 2019	Dec. 31, 2019
EBIT margin, %	1.9	7.1	6.6
Profit margin, %	0.5	4.6	4.2
Equity ratio, %	34.8	39.5	33.7
Equity per share, basic, SEK	24.2	24.8	23.9
Earnings per share, basic, SEK	0.21	1.83	2.27
Return on equity after tax, %	2.6	9.5	9.7
Return on capital employed, %	3.1	8.0	7.8
Return on net operating assets, %	4.3	10.6	10.6
Average number of employees	793	743	773

Cash Flow Statement–Group

SEK 000	Sept. 30, 2020	Sept. 30, 2019	Dec. 31, 2019
Cash flow from operating activities before
changes in working capital	119,440	149,544	204,665
Change in working capital	980	-59,014	-21,405
Cash flow from operating activities	120,420	90,530	183,260
Cash flow from investing activities	-64,067	-124,552	-333,745
Cash flow from finance activities*	-49,031	50,905	189,686
Dividend paid		-14,301	-14,301
Change in cash equivalents	7,322	2,582	24,900
Cash equivalents and short-term investments,
opening balance	121,903	94,488	94,488
Exchange rate change, cash equivalents	-4,059	4,900	2,515
Cash equivalents and short-term investments,
closing balance	125,166	101,970	121,903
*of which amortization of lease liabilities	-31,663	-28,453	-39,047

Operating Segments

	Quarter 3	Quarter 3	9 mth.	9 mth.	Full year
SEK 000	2020	2019	2020	2019	2019
Net sales
Westermo	181,937	182,840	585,957	505,915	705,233
Beijer Electronics	136,512	179,984	453,447	562,388	756,196
Korenix	19,841	33,287	59,210	93,379	119,880
Group adjustments	-3,541	-4,733	-11,105	-18,259	-22,610
Group	334,749	391,378	1,087,509	1,143,423	1,558,699
EBITDA
Westermo	32,728	38,687	117,929	98,967	134,322
Beijer Electronics	9,776	25,255	31,1311	80,659	104,899
Korenix	1,814	2,968	-3,9032	9,103	9,918
Parent company	-4,366	-4,278	-16,398	-20,772	-26,844
Group adjustments	3,103	439	2,825	3,313	4,950
Group	43,055	63,071	131,5843	171,270	227,245
EBIT
Westermo	15,576	25,957	70,576	67,276	89,576
Beijer Electronics	-4,452	12,274	-11,0301	44,267	54,953
Korenix	-1,405	-693	-13,8112	-1,559	-4,330
Parent company	-6,344	-6,398	-22,422	-26,910	-35,105
Group adjustments	1,328	-1,212	-2,294	-1,583	-1,598
Group	4,703	29,928	21,0193	81,491	103,496

1 Including restructuring expense of 11,010,000 SEK.

2 Including restructuring expense of 2,818,000 SEK.

3 Including restructuring expense of 15,000,000 SEK.

Revenue

SEK 000	Quarter 3	Quarter 3	9 mth.	9 mth.	Full year
	2020	2019	2020	2019	2019
Geographical market
Sweden	39,598	53,239	147,469	167,589	227,624
Rest of Nordics	31,992	33,226	104,308	108,310	151,077
Germany	19,337	28,532	68,425	80,408	108,563
UK	19,009	30,810	74,814	85,370	116,617
France	30,319	27,170	93,373	58,660	84,522
Turkey	7,550	7,226	21,651	20,207	28,924
Rest of Europe	54,305	57,485	171,420	189,627	250,975
USA	33,907	59,903	132,980	193,066	262,620
Taiwan	26,668	14,679	62,908	39,496	58,614
China	24,936	35,804	79,132	93,390	124,321
Rest of Asia	41,716	31,518	112,284	79,000	108,648
Rest of world	5,412	11,786	18,745	28,300	36,194
Group	334,749	391,378	1,087,509	1,143,423	1,558,699

Category

Operator panels and accessories	117,894	159,256	388,187	494,463	665,034
Network equipment	197,245	211,466	635,193	586,658	809,547
Other products and services	19,610	20,656	64,129	62,302	84,118
Group	334,749	391,378	1,087,509	1,143,423	1,558,699

Income Statement—Parent Company

SEK 000	Quarter 3	Quarter 3	9 mth.	9 mth.	Full year
	2020	2019	2020	2019	2019
Net turnover	8,802	8,480	26,406	25,448	33,931
Operating expenses	-15,146	-14,878	-48,828	-52,358	-69,036
EBIT	-6,344	-6,398	-22,422	-26,910	-35,105
Net financial items	-5,293	4,586	-7,091	6,565	-91
Profit before tax	-11,637	-1,812	-29,513	-20,345	-35,196
Appropriations					68,400
Estimated tax	2,097	67	4,845	3,368	-8,201
Net profit	-9,540	-1,745	-24,668	-16,977	25,003

Balance Sheet—Parent Company

SEK 000	Sept. 30, 2020	Sept. 30, 2019	Dec. 31, 2019
Assets
Fixed assets	947,256	796,174	980,447
Current assets	17,735	13,989	81,476
Cash equivalents and short-term investments	1,166	1,166	1,166
Total assets	966,157	811,329	1,063,089
Liabilities and shareholders' equity
Shareholders' equity	280,455	260,144	302,820
Long-term liabilities	517,337	406,209	547,256
Current liabilities	168,365	144,976	213,013
Total liabilities and shareholders' equity	966,157	811,329	1,063,089
Of which interest-bearing liabilities	582,363	465,937	611,424

Parent Company Statement of Changes in Equity

SEK 000	Share capital a	Other restricted equity	Share premium reserve and retained earnings	Net profit	Total equity
Opening equity, 1 Jan. 2020	9,595	6,964	286,261		302,820
Net profit				-24,668	-24,668
Total changes to net worth, exc. transactions with company's shareholders	9,595	6,964	286,261	-24,668	278,152
Rights issuea	22		-76		-54
Repurchase of treasury shares			-22		-22
Share-based payment			2,379		2,379
Closing equity, 30 Sept. 2020	9,617	6,964	288,542	-24,668	280,455
a No. of shares, 1 Jan. 2020 Class C shares issued in new share issue No. of shares, 30 Sep. 2020	28,786,102 66,298 28,852,400
Quotient value (SEK)	0.33
The issue price was 0.33 SEK per share. There are 28,627,219 ordinary shares and 225,181 class C shares.

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.

EBIT margin EBIT in relation to net sales.

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.

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 AB (publ) is a growing powerhouse of innovators within mission-critical industrial digital technology and IIoT. With a strong focus on the connection between people, technology and data, we share a pride in having some of the world's leading global companies as our core customers. Since its start-up in 1981, beijer group has evolved into a multinational group of complementary business entities with sales over 1.6 billion SEK in 2019.

The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE.

More Information

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

Financial Calendar

28 January 2021Year-end Report
21 April 2021 Three-month Interim Report
6 May 2021Annual General Meeting
14 July 2021 Six-month Interim Report
26 October 2021 Nine-month Interim Report

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