Interim report January–March 2016

Demand from industrial customers remains sluggish
CEO’s comments
After five consecutive quarters of increased year-on-year earnings, the Group’s
profit declined during the first quarter of the year. We are seeing the effects
of continued sluggish demand from industrial companies worldwide. During the
preceding year, this was offset by strong demand in the nuclear power segment in
Habia and the Chassis Springs business area in Lesjöfors. While demand from
customers in the nuclear power sector remained strong at the beginning of 2016,
Chassis Springs reported a weaker trend. Overall, this meant that sales during
the first quarter declined approximately 1 percent and that profit after net
financial items fell from MSEK 112 to MSEK 107. The operating margin declined
from 12.6 percent to 12.1 percent during the quarter.

Cash flow after capital expenditures amounted to a negative MSEK 2 (neg: 34). As
in the preceding year, this negative cash flow was mainly attributable to higher
accounts receivable in Lesjöfors due to a seasonal sales increase in the Chassis
Springs business area. Net debt totaled MSEK 205 (490). Net debt for 2015 was
impacted by the payment of dividends. This year, dividends were paid after the
close of the quarter.

Lesjöfors’s invoicing fell 5 percent to MSEK 510. The company’s two business
areas – Chassis Springs and Industrial Springs – experienced an equal decline.
Within Chassis Springs, which grew substantially in 2015, both invoicing and
order bookings decreased. This decline was primarily attributable to the UK
market, which displayed the fastest growth during 2015. These operations are
strongly seasonal in nature, with peak sales in the first and second quarters.
The level of incoming orders also indicates a slightly weaker trend at the
beginning of the second quarter. Industrial Springs continued to feel the impact
of the declining demand in general industry. Similar trends were reported in all
geographic regions. Order bookings were in line with invoicing in both
Industrial Springs and Chassis Springs.

Operating profit amounted to MSEK 90, compared with MSEK 100 in the year-earlier
period, and the operating margin declined slightly. This decline in earnings was
mainly attributable to the Industrial Springs business area.

Habia’s invoicing increased 8 percent to MSEK 204. This increase in invoicing
was mainly attributable to higher sales of cables to customers in the nuclear
power industry. The company’s other customer areas reported unchanged invoicing
compared with preceding year. Order bookings were higher than invoicing and
significantly higher than order bookings in the preceding year. This year-on
-year improvement was attributable to customers in the telecom, nuclear power
and defense industries, while order bookings from customers in general industry
declined.

Operating profit totaled MSEK 22, compared with MSEK 21 in the year-earlier
period, which means that the operating margin was largely unchanged.

Beijer Tech’s invoicing amounted to MSEK 188, which was unchanged compared with
the preceding year. Fluid Technology reported weak growth and unchanged
profitability. Industrial Products reported slightly lower sales than in the
year-earlier period and weaker earnings. Profit was mainly impacted by the trend
in the offshore sector in Norway.

Operating profit totaled MSEK 4 (1). It should be noted that the first quarter
of the preceding year was charged with severance expenses of approximately MSEK
4 related to the change of President.

The trend noted in the first quarter of the year continued into the beginning of
the second quarter. Demand in the operating areas impacted by the general
economy remained weaker than in the year-earlier period. Sales in Lesjöfors’s
Chassis Springs business area were also weaker than in 2015. This was partly
offset by the strong performance of certain other segments, such as nuclear
power cables in Habia. Overall, the comparative data for the second quarter is
challenging.
If you have any questions, please contact:
Bertil Persson, President and CEO, Telephone 46 8 506 427 50,
bertil.persson@beijeralma.se
Jan Blomén, Chief Financial Officer, Telephone 46 18 15 71 60,
jan.blomen@beijeralma.se
Beijer Alma AB (publ) is an international industrial group that focuses on
component production and industrial supplies. The Group includes Lesjöfors, one
of Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest
manufacturers of custom-designed cables and Beijer Tech, with strong positions
in industrial supplies in the Nordic region. Beijer Alma is listed on NASDAQ OMX
Stockholm Mid Cap.

Beijer Alma AB (publ)
Dragarbrunnsgatan 45, Box 1747, SE-751 47 Uppsala, Sweden. Telephone 46 18 15 71
60. Fax 46 18 15 89 87.
Registered office: Uppsala. Corp. Reg. No: 556229-7480. www.beijeralma.se