2007
ANNUAL REPORT
Notice Convening
the Annual General Meeting
The Annual General Meeting (AGM) will be held at 4 p.m. on Monday, April 21, 2008 at the Malmö Börshus, Skeppsbron 2, Malmö, Sweden.
Entitlement to Participate in the AGM
For entitlement to participate in the AGM, shareholders should:
First
• , be included in the share register maintained by VPC AB (the Swedish Central Securities Depository &
Clearing Organization) on Tuesday, April 15, 2008;
Second
• , notify the company of their intention to partici- pate, with the number of assistants they wish to bring, by no later than 12 noon on Tuesday, April 15, 2008.
Notification
Notifications should state the shareholders’ name, personal or corporate identity number, shareholding, address and telephone number. Notifications can be made via the company’s Website, www.beijerelectronics.se, by telephone on +46 (0)40 35 86 44, by fax on +46 (0)40 29 26 70, by e-mail to arsstamma@beijerelectronics.se or by mail to Annika Johnsson, Beijer Electronics AB, Box 426, 201 24 Malmö, Sweden (please mark the envelope ‘AGM’).
If participation is through power of attorney, a dated original should be sent to the company by no later than Monday April 14, 2008. Representatives of legal entities should present certificates of incorporation or equivalent documentation stating authorized signatories.
In order to participate at the meeting, shareholders’ with nominee-registered holdings must temporarily register their shares in their own name. This re-registration should be complete by April 15, 2008, and shareholders should notify their nominees in good time before this date.
Dividends
The Board of Directors is proposing that dividends of SEK
4.00 per share are paid for the financial year 2007, with
the record date of April 24. Dividends are scheduled for
payment via VPC on April 29.
Beijer Electronics—Summary 2
Highlights of the Year 3
CEO’s Statement 4
The Share 6
Business Model 8
Westermo 10
Group Overview 2007 12
Organizational and Human Resources 17
The HMI Products Business Area 20
The Automation Business Area 28
Board of Directors 36
Senior Executives 37
Directors’ Report 38
Consolidated Income Statement 41
Consolidated Balance Sheet 41
Consolidated Statement of
Changes to Shareholders’ Equity 43
Consolidated Cash Flow Statement 44
Parent Company Income Statement 45
Parent Company Balance Sheet 45
Parent Company Assets Pledged
and Contingent Liabilities 46
Parent Company Statement of
Changes to Shareholders’ Equity 47
Parent Company Cash Flow Statement 48
Notes 49
Audit Report 79
Five-year Summary 80
Definitions 82
Addresses 84
Contents
Beijer Electronics—Summary
A Strong European Player
80 per cent of sales are sourced from businesses in Europe.
Automation, with its secure positioning in the Nordic and Baltic regions, sells automation solutions to end-customers, and to machine builders and integrators. HMI Products and Industrial Data Communications sell their products through proprietary sales enterprises and distributors worldwide. HMI Products also sells through brand label customers like ABB, SEW Eurodrive and Mitsubishi Electric.
An Extended Focus Expands the Market
Infrastructure and Marine are two vertical markets identified and addressed strategically by our business areas. Transporta- tion, Real Estate Automation, Water/Waste Water and Energy are some important infrastructure sub-markets that offer high growth potential.
Growth
In the last three years, Beijer Electronics has achieved aver- age growth of 25 per cent. The year 2007 was eventful, with acquisitions in Germany, Denmark and Sweden. The Swedish acquisition formed a completely new business area in industrial data communications, a high-growth automation segment.
Three Related Business Areas
Beijer Electronics’ three business areas are all active in automa- tion. HMI Products develops and sells operator panels. Automa- tion sells products from world-leading producers including HMI Products and Mitsubishi Electric. Industrial Data Communications develops and sells robust data communications solutions.
Long-term Goals
Minimum annual growth including acquisitions
•
of 15 per cent;
Operating margin of 10 per cent;
•
Minimum equity ratio of 30 per cent;
•
Good cash flow and high dividend capacity.
•
World-leading Products
From its base in Europe and Asia, Beijer Electronics develops and markets user-friendly, high-quality products and systems solutions. Design and function are important parts of the development process. The know-how and commitment of Beijer Electronics’ employees creates value for its customers.
HMI Products
Automation
Industrial Data
Communications
Group
2007 2006
Sales, SEK m 963.8 735.0
Operating profit, SEK m 86.9 77.2
Operating margin, % 9.0 a) 10.5
Profit before tax, SEK m 84.6 75.6 b)
Earnings per share, SEK 9.21 8.49 c)
Dividends per share, SEK 4.00 3.75 d)
Equity ratio, % 38.2 44.0
Average number of employees 463 314
a) Excluding non-recurring expenses of SEK 5.3 m in 2007, operating margin was 9.6 per cent (10.5).
b) Including capital gains of SEK 37.4 m in 2006, profits were SEK 113.1 m.
c) Including capital gains of SEK 37.4 m in 2006, earnings per share were SEK 14.51.
d) Including the extraordinary dividend of SEK 2.00 in 2006, dividends were SEK 5.75.
More information in the five-year summary on page 80.
Highlights of the Year
Net turnover increased to SEK 963.8 m (735.0).
•
Operating profit rose to SEK 86.9 m (77.2), including non-recurring
•
expenses of SEK 5.3 m.
The Board of Directors proposes a dividend of SEK 4.00 (SEK 3.75 and
•
an extraordinary dividend of SEK 2.00).
On january 1, 2007, Beijer Electronics’ Automation business area
•
took over Mitsubishi Electric’s agencies on the Danish market. A new subsidiary, Beijer Electronics A/S, was incorporated simultaneously, with an office opened outside Copenhagen.
Through the Automation business area, Beijer Electronics acquired
•
Danish automation enterprise Brodersen Automation in April 2007.
In june, Beijer Electronics acquired German HMI enterprise
•
Elektronik-Systeme Lauer through the HMI Products business area.
In August, Beijer Electronics’ CEO and President Göran Sigfridsson
•
informed the Board of his intention to step down by no later than the AGM 2008.
In October, the Board appointed Fredrik jönsson as CEO and
•
President. He will succeed Göran Sigfridsson at the AGM 2008.
In October, the Automation business area secured a keynote strategic
•
order for control system solutions for the Swedish National Rail Administration’s Citytunnel project in Malmö.
In December, Beijer Electronics acquired Swedish family-owned
•
industrial data communications business Westermo. Westermo is now an independent business area and was consolidated into Beijer Electronics from january 1, 2008.
Sales
0 200 400 600 800 1000
2003 2004 2005 2006 2007 SEK 000
In 2007, sales grew by 31 per cent to SEK 963.8 m (735.0).
In 2007, operating profit rose by 13 per cent to SEK 86.9 m (77.2).
Excluding non-recurring expenses of SEK 5.3 m, the operating margin was 9.6 per cent (10.5).
Operating Profit
SEK 000
0 10 20 30 40 50 60 70 80 90
2003 2004 2005 2006 2007
In 2007, operations generated a cash flow of SEK 80.5 m (69.5).
Cash Flow from Operations
SEK 000
0 10 20 30 40 50 60 70 80
2003 2004 2005 2006 2007
CEO’s Statement
The past year was really eventful, with three strategic acquisitions and high growth for the group. It meant that in 2007, Beijer Electronics achieved its best year yet in terms of sales and operating profit, while we also laid a secure foundation for continued profitable growth.
The highlight of the year was our acquisition of Westermo, active in industrial data communications. Westermo is a very exciting niche enterprise in its segment, and fits well into Beijer Electronics’ future progress.
Data communications are a major part of many types of automation solutions. Westermo’s broad product range and high organic growth complements, and thus enhances, Beijer Electronics’ overall offering. Although we have many shared customers, there is also sizeable scope to address customers where there is less of an overlap. One example is within infrastructure. Additionally, many customers now want fewer but larger vendors of total solutions, which means that Beijer Electronics will enhance its overall competitiveness.
At year-end, Westermo became a business area alongside Automation and HMI Products. This company is stable and in high growth, has good cash flows and will progress on its own strengths. Initially, with its larger organiza- tional resources, Beijer Electronics will be able to support and contribute to Westermo’s continued progress. In the somewhat longer term, we will seek to realize coordination gains between our business areas in procurement, produc- tion and sales, for example.
Brisk Progress for Automation
The Automation business area’s progress in 2007 was convincing—its Danish market initiative with new agen- cies from Mitsubishi Electric and the acquisition of Danish automation company Brodersen has been very positive. In
just one year, we have achieved sales of over SEK 100 m in Denmark. The focus was on integrating acquisitions, which also involved the businesses in Finland and the Baltic region acquired in fall 2006.
Danish automation enterprise Brodersen has progressed very well—in just a year we’ve achieved annualized sales of over SEK 100 m in Denmark. The focus has been on the integration of these acquisitions, also covering operations in Finland and the Baltic region, acquired in fall 2006.
The strong business cycle was a contributor to a positive market in the Nordic region. The upturn was broad-based and captured all automation segments. Automation was able to defend its market positioning, and reported good organic growth. Overall, this meant that the business area easily passed sales of SEK 0.5 bn. However, these initiatives did generate costs in the form of acquisition and integration expenses, while the new operations had lower profitability than the rest of the business area. Thus operating margins did not quite hit our target, but the positive profit effect of integration activities should become visible progressively.
HMI Products’ Strategic Acquisition in Germany The acquisition of German HMI business Lauer was the highlight for HMI Products. This deal meant us taking an important step by moving into the massive German market. We also decided to implement a rationalization package quickly, so that we can raise profitability to the same level as the rest of the business area. This package was implemented in the fall and the integration with HMI Products’ German activities has gone as planned.
Lauer contributed to HMI Products posting good growth of 20 per cent in the year. However, business area organic growth did not fully meet expectations. Dollar depreciation exerted a negative impact on sales, in Swedish krona terms. Sales of our new panels in the EXTER series
“Beijer Electronics has more than doubled sales in three years,
and at year-end 2007, had annualized sales of over SEK 1 billion.”
were very positive, but the sales gains did not fully compen- sate for the sales downturn from the previous generation of panels. HMI Products hit its margin target in 2007, a sign of strength against the background of Lauer having lower margins than the rest of the business area.
Three strong Business Areas Focused on Profitable Growth
Beijer Electronics has more than doubled sales in three years, and at year-end 2007, had annualized sales of over SEK 1 billion. In the same period, operating profit increased at nearly the same rate despite heavy expenses for aggressive initiatives. The group consists of three stable business areas with the potential for continued high and profitable growth.
With Westermo as part of the group, we moved into 2008 with annualized sales of some SEK 1.3 billion and good profit levels. We must now consolidate the group’s positions and prioritize organic growth in each business area, while also managing the risks relating to a potential slowdown in global economic growth. Acquisitions remain an important component of our strategy to further enhance our business areas.
Outlook for 2008
Beijer Electronics has experienced continued good demand in early 2008. The company expects to be able to keep increasing sales and profits in 2008 against the background of its acquisitions and advanced positioning in each busi- ness area.
Göran Sigfridsson
President and Chief Executive Officer
The Beijer Electronics Share
Beijer Electronics is a small cap company listed on OMX Nordic Exchange Stockholm, with ticker symbol BELE.
A trading lot is 100 shares.
Share Capital
Beijer Electronics’ share capital is SEK 6,221,488 divided between 6,221,488 shares. The minimum share capital is SEK 2,000,000, and the maximum, SEK 8,000,000.
Each share has a quotient value of SEK 1. All shares have one vote and confer equal rights to participation in the corporation’s assets and profits.
Share Price and Turnover
In terms of bid price, the share price was SEK 149.5 on December 31, 2007, against SEK 154.50 on December 31, 2006, equal to a 3.2 per cent fall in the year. In the same period, the Stockholm Stock Exchange fell by 6.0 per
cent. Beijer Electronics traded at a high of SEK 179.50 and a low of SEK 133 in the year.
Share turnover was 1.4 million shares, or 22 per cent of the total number of shares. In value terms, turnover was SEK 220 m.
Earnings per Share
Earnings per share after tax were SEK 9.21 (8.49). In 2006, EPS included a capital gain. Including the capital gain, EPS was SEK 14.51.
Dividends
The Board of Directors proposes dividends of SEK 4.00 (3.75) for the financial year 2007. The dividend for 2006 included an extraordinary dividend of SEK 2.00 per share.
Total dividends equate to 43 per cent (40) of profit after tax. The proposed dividends imply a dividend yield of 2.7 per cent (3.7) as of the closing price at year-end 2007.
Share Data
2007 2006
Earnings per share, SEK 9.21 8.49 a)
Dividend, SEK b) 4.00 3.75
Pay-out ratio, % 43 40
Dividend yield, % 2.7 3.7
Shareholders’ equity per share, SEK 34.28 31.64
Return on equity, % 28.3 51.3
Closing price, SEK 149.5 154.5
No. of shares, million 6.22 6.22
Market cap., SEK m 930 961
a) Earnings per share including capital gains were SEK 14.51 in 2006.
b) Proposed dividends for 2007. Dividends were SEK 5.75 including extra dividends of SEK 2.00 in 2006.
Shareholders as of December 31, 2007
No. of shares
and votes Proportion 2007, %
Stena 1,605,372 25.8
Svolder 859,400 13.8
Skandia Liv 405,300 6.5
Fourth AP
(National Pension Insurance) Fund 263,300 4.2
SEB Small Caps 205,300 3.3
Lannebo 196,300 3.2
Skandia Small Caps 167,500 2.7
Werner family 150,000 2.4
Carlsson Small Caps 96,700 1.6
Lån & Spar Bank DK 89,400 1.4
Total, shareholders with over
85,000 shares, 10 4,038,572 64.9
Other shareholders 2,182,916 35.1
Total, 3,272 6,221,488 100.0
Source: VPC
Stock Index
Beijer Electronics share SIX Generalindex (SIXGX) Carnegie Small Cap Index (CSX)
130 140 150 160 170 180
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SEK
Source: SIX AB
Shareholder Categories, Equity Holding
Mutual fund corporations 12.6 %
Insurance companies and pension funds 6.9 %
Other organizations 20.7 %
Foreign shareholders 4.2 %
Swedish private individuals
23.3 % Other legal
entities 32.3 % Source: VPC
Shareholdings as of December 28, 2007
Holding No. of Shareholders No. of Shares Percentage of
Share Capital Market Value, SEK 000
1—500 2,694 321,545 5.2 48,553
501—1,000 265 226,392 3.6 34,185
1,001—5,000 229 520,866 8.4 78,651
5,001—10,000 40 280,145 4.5 42,302
10,001—15,000 14 174,562 2.8 26,359
15,001—20,000 2 35,300 0.6 5,330
20,001— 28 4,662,678 74.9 704,064
Total 3,272 6,221,488 100.0 939,445
Source: VPC
Beijer Electronics’ Business Model
Achievement of Quantitative Goals
Goal Average 3 yr. Average 5 yr. 2007 2006 2005 2004 2003
Sales growth, % 15 27.7 19.0 31.0 20.0 32.6 6.0 1.4
Operating margin, % 10 9.8 10.1 9.0 10.5 9.8 9.9 5.9
Equity ratio, % >30 40.2 43.8 38.2 44.0 38.5 49.2 48.4
Beijer Electronics is a multinational automation com- pany. The company offers its customers proprietary and agency products from world-leading suppliers.
Through its acquisition of Westermo Teleindustri AB, consolidated from January 1, 2008, the company has three business areas—Automation, HMI Products and Industrial Data Communications. The business models of these business areas are tailored for the special conditions applying on each segment’s markets. Goals and strategies are formulated within the framework of the group’s busi- ness concept, goals and strategies.
Group Business Concept
Beijer Electronics will apply high skills levels and innova- tion to develop and commercialize proprietary and agency products, and to offer automation systems and services.
All products, services and systems should include a high technology content and feature user-friendliness and high quality, in order to provide our customer groups with efficient automation solutions, contributing to enhanced customer benefit.
Long-term Goals
The group will achieve minimum average yearly growth
•
including acquisitions of 15 per cent;
The group will achieve an average operating margin of
•
10 per cent;
The group will have a low level of capital tied up in fixed
•
assets, limiting its need for high shareholders’ equity.
However, it will maintain a minimum equity ratio of 30 per cent;
The group will maintain good cash flows, and thereby,
•
high dividend pay-out capacity. Dividends will be con- sidered each year in the context of the group’s capital requirements for future expansion.
HMI Products
Automation
Industrial Data Communications
From January 1, 2008 onwards, Beijer Electronics has three
business areas—Automation, HMI Products and Industrial
Data Communications.
Two of the group’s key strategies are to stimulate continuous skills enhancement of the group’s employees to increase know-how and employee commitment to daily work, and to promote the open exchange of ideas, information and solutions between different parts of the group.
The Group’s Central Strategies
To offer high-quality, high-technology products, services
•
and systems based on customer needs that create value- added and enhance customer competitiveness.
Growth through acquisitions to enter new geographical
•
markets and technology segments.
Stimulate continuous skills enhancement of the group’s
•
employees to increase know-how and employee com- mitment to daily work.
Promote an open exchange of ideas, information and
•
solutions between the group’s various parts.
The parent company is a holding company and is account-
able for shared functions like Strategic Development,
Accounting, Finance, IT, HR, Quality, Environment and
Corporate Communication. The business areas’ activities
are presently run through three subgroups, the parent
companies are Beijer Electronics Automation AB, Beijer
Electronics Products AB and recently acquired company
Westermo Teleindustri AB.
Westermo—A New Business Area in the Group
Beijer Electronics acquired Swedish industrial data communications company Westermo in late-2007.
This acquisition was a key strategic step in the Beijer Electronics group’s continued development. Data com- munications is playing an increasingly central role in industrial automation solutions. Westermo’s broad product range and high organic growth complements, and thus enhances, Beijer Electronics’ overall automa- tion offering.
Westermo is an international company, which had sales of SEK 223 m in 2007 and has 148 employees. Westermo has become a new business area in the group, called Industrial Data Communications, created at year-end 2007.
Westermo was founded in 1975 and is a niche data com- munications player with specialist skills in industrial data communications, which are subject to especially challeng- ing standards for robust products in exposed environments, high reliability and safety.
In-house Product Development
Westermo offers proprietary products like network switches, routers, various types of fiber-optic, GSM and analog modem. The company is development intensive, with some 30 employees working on product develop- ment. Product development expenses were SEK 34 m in 2007, 15 per cent of the company’s sales. Westermo has in-house production at its facility outside Eskilstuna, west of Stockholm. It mainly produces PCB cards that are assembled and tested in finished products. Production employs some 40 staff.
Westermo’s standard products generate 85 per cent of sales, with custom products providing the remaining 15 per cent. The company’s communication products are present in a range of applications:
Information and monitoring of rail transport, like pas-
•
senger data, signal controls, alarm transmission, etc.
Remote control and remote monitoring in water, waste
•
water and heating plants.
Network solutions for general transportation and traffic
•
systems with ticket checks, passenger data, traffic flow monitoring, remote control of traffic signals, alarms, etc.
Network solutions for manufacturing facilities as com-
•
munication between control systems and monitoring.
Communications solutions in the marine and offshore
• sectors.
Westermo has in-house production at its facility near Eskilstuna
outside Stockholm. It mainly produces PCB cards that are
assembled in finished products.
Marketing and sales are through Westermo’s proprietary brand. Westermo has sales enterprises in Sweden, the UK, Germany, France and Singapore, and some 30 distributors worldwide. The Nordic market represents some 20 per cent of sales, with the rest of Europe some 70 per cent. Some 65 staff work in marketing and sales.
Broad Customer Base
Westermo has a very broad customer base for its standard products with a total of over 10,000 regular customers each year. Customer relations are normally long-term with a high repeat purchase frequency. Individual order values vary widely, from SEK 10,000 to SEK 3-4 m. Examples of customers in various categories are ABB, Alstom and EDF of France, Ansaldo of Italy, BAE Haegglunds and Thames Water in the UK, the Swedish National Rail Administration, Boeing, Bombardier and Rolls-Royce Marine.
A Market with High Growth Potential
Westermo’s present estimated global market share is some 5 per cent. The company has outgrown the market, with average yearly growth of 17 per cent in the last ten years.
The primary drivers of market growth are an expanding need for wired and wireless data communications, and increasing demands for secure and powerful data transmis- sion in challenging environments. Estimated yearly growth is some 15-20 per cent for the next five years in IP-based systems, where Westermo is active. The company’s com- petitors include Moxa, Hirschmann and Cisco.
Westermo has high estimated growth potential, and with its industrial skills, Beijer Electronics can support and contribute to the company’s continued progress. In the longer term, there are coordination gains in procurement, production and sales.
Westermo’s management will be retaining their positions.
CEO Lars-Ola Lundkvist, whose experience includes many years with ABB Robotics, became a member of Beijer Electronics’ group management in February 2008.
Westermo’s Ethernet switches are used in Seattle’s bus ticketing
system. Data communications processing units were fitted to a
total of 2,500 busses. Low operating voltages and high reliability
were contributors to Westermo’s products being selected.
Group Overview 2007
The automation market traced good growth in 2007, although there were slowdown tendencies in some regions. Beijer Electronics acted aggressively, making several acquisitions in Automation and HMI Products.
Westermo, active in industrial data communications, was also acquired, and formed a new business area in the group from year-end 2007. Beijer Electronics achieved its best year yet in terms of sales and operat- ing profit.
Progress in 2007 took the Beijer Electronics group to a new level, with underlying annualized sales moving well past the SEK 1 billion mark. 2007 was an intensive year with three strategic acquisitions. The highlight was the strategic acquisition of Westermo, active in industrial data communications.
The central purpose of the Westermo acquisition is that data communications are becoming an increasingly impor- tant part of industrial automation solutions. Westermo’s broad product range with high organic growth, comple- ments, and thus enhances, Beijer Electronics’ automation offering. Westermo is an international company with sales of SEK 223 m in 2007.
The highlight in the HMI Products business area was the acquisition of Lauer of Germany, with annualized sales of SEK 120 m. The acquisition is an important strategic step, increasing HMI Products’ presence on the important German market, which is 40 per cent of the European market for HMI products. The company has developed proprietary operator panels in the HMI segment, and complements the business area’s product range, especially in the higher-end segment. A rationalization package was decided coincident with the acquisition, to increase profit- ability to the same level as the rest of the business area in the longer term.
The Automation business area made a strategic move into Denmark with the acquisition of Brodersen Automation.
Brodersen, which has annualized sales of some SEK 65 m, is a supplier of automation components for electromechani- cal products. Brodersen has a broad customer base on the Danish market, which provides some 80 per cent of its sales. Since the acquisition, Brodersen has been integrated
The Automation business area offers a range of concept solutions
for the growing market in infrastructure projects. The control of
energy systems is one example, as here at the Oftedal power plant
in Norway.
with Automation’s operations in Denmark, Norway and Sweden.
The Brodersen acquisition was part of the business area’s initiative on the Danish market, when Automation took over Mitsubishi Electric’s agencies in Denmark at year-end 2006.
These initiatives meant annualized sales on the Danish market exceeding SEK 100 m, with good prospects of continued organic growth.
Other highlights of the year included HMI Products’
strategic agreement with Wonderware to deliver hard- ware, based on the same platform as the EXTER series.
Wonderware is a world-leading industrial automation soft- ware vendor with over 450,000 sold licenses. Wonderware will be selling this hardware with its proprietary software on the global market. The Automation business area secured a strategic order for control systems solutions on the Swedish National Rail Administration’s Citytunnel project in Malmö. Automation prepared a concept solution for rail traffic, integrating a standard system from Mitsubishi Electric with custom software. The Automation business
area develops concept solutions for the growing market in infrastructure projects like rail, tunnels, water and waste water, real estate and energy.
Market
The total industrial automation market is tracing trend growth exceeding GDP. The growth drivers are investments in new products, ongoing rationalization of production controls and logistics, and the rationalization of industrial processes. Meanwhile, the market for automation products is in continuous change with technological advances, new applications, product development and new customer needs. The total global HMI products market grew in line with average growth of just over five per cent.
Sales
Beijer Electronics made very positive progress in the year.
Sales increased by 31 per cent to SEK 963.8 m (735.0), with acquisitions contributing SEK 191.6 m of the increase.
Sales in Sweden, which is Beijer Electronics’ biggest market, were SEK 283.8 m (262.1). Sales in Norway grew
Business Area Sales and Operating ProfitSales Operating Profit
SEK m 2007 2006 2007 2006
Automation 571.3 408.6 34.1 27.3
HMI Products 465.4 392.5 58.3 a) 53.0
Internal sales -72.9 -66.1
Non-recurring expenses -5.3 b)
Group adjustments -0.2 -3.1
Group 963.8 735.0 86.9 77.2
a) Operating profit before non-recurring expenses was SEK 5,266,000.
b) Non-recurring expenses and provisions relating to restructuring of the German operations were SEK 5,266,000.
by 19 per cent to SEK 129.3 m (109.1) and by 64 per cent to SEK 73.6 m (44.8) in Finland. Sales on the new Danish market were SEK 82.3 m (0).
Consolidated sales outside the Nordic region were SEK 394.8 m (319.0). Sales in Europe, outside the Nordic region, increased by 66 per cent to SEK 204.6 m (123.4).
Sales in Asia were SEK 115.2 m (106.1) and SEK 68.5 m (83.2) in North America.
Business Area Sales
The Automation business area’s sales increased by 40 per cent to SEK 571.3 m (408.6), with Automation represent- ing 55 per cent (51) of consolidated total sales. The HMI Products business area increased sales by 19 per cent to SEK 465.4 m (392.5), or 45 per cent (49) of total sales.
Operating Profit
Consolidated operating profit was SEK 86.9 m (77.2). The
The bars and left-hand scale indicate quarterly invoicing. The curve and right-hand scale show rolling quarterly invoicing.
Consolidated Invoicing
SEK m Rolling four quarters SEK m
Quarter
0 30 60 90 120 150 180 210 240 270 300 330
0 90 180 270 360 450 540 630 720 810 900 990
1 2 3 4
2004 2005 2006 2007
1 2 3 4 1 2 3 4 1 2 3 4
SEK m Rolling four quarters SEK m
Quarter
The bars and left-hand scale indicate profit after depreciation and amortization. The curve and right-hand scale show rolling four quarter profit after depreciation and amortization.
Consolidated Operating Profit
0 3 6 9 12 15 18 21 24 27 30
0 9 18 27 36 45 54 63 72 81 90
1 2 3 4
2004 2005 2006 2007
1 2 3 4 1 2 3 4 1 2 3 4
operating margin was 9.0 per cent (10.5). Profit was subject to non-recurring expenses for acquisitions and integration costs totaling SEK 7.9 m.
Development expenditure, exclusively relating to the HMI Products business area, was SEK 42.8 m (40.8). SEK 10.9 m (10.9) of development expenditure was capitalized.
The amortization of capitalized development expenses was SEK 6.6 m (5.5). Total development expenses of SEK 38.5 m (35.2) were reported to profits for the financial year.
The operating profit of the Automation business area rose to SEK 34.1 m (27.3). HMI Products’ profit increased to SEK 58.3 m (53.0).
Profit Before and After Tax
Consolidated net financial items were SEK –2.4 m (35.9).
Net financial items for 2006 include capital gains of SEK 37.4 m. Profit before tax amounted to SEK 84.6 m (113.1). Profit after tax was SEK 60.6 m (91.0), equal to earnings per share of SEK 9.21 (14.51 and 8.49 adjusted for capital gains).
Investments, Cash Flow and Financial Position Investments in fixed assets including capitalized develop- ment expenses were SEK 83.2 m (36.4). Cash flow from operating activities before changes in working capital was SEK 80.5 m (69.5). Cash equivalents amounted to SEK 71.9 m (91.9), and interest-bearing liabilities were SEK 157.4 m (80.7) at year-end. Consolidated financial net assets were SEK 85.5 (+11.2). Shareholders’ equity was SEK 224.3 m (204.1), of which minority share was SEK 11.0 m (7.3) at year-end, equal to an equity ratio of 38.2 per cent (44.0).
Profitability
Return on equity was 28.3 per cent (51.3). Return on
capital employed and net operating assets was 26.6 per cent (45.3) and 34.6 per cent (42.6) respectively. The high profitability is due to a combination of good operating margins and a high rate of capital turnover, a consequence of low capital tied-up.
Human Resources
The average number of employees was 463 (314). Sales per employee were SEK 2.1 m (2.3).
Operational Risks
Beijer Electronics’ business is influenced by a number of exogenous factors, whose effects on consolidated profits and financial position can be controlled to varying degrees. The group has a close collaboration with Mitsubishi Electric, which is important to operations, and accordingly, is a risk factor. Mitsubishi Electric is a supplier to the group and buyer of Beijer Electronics products, creating a balance and mutual dependency that reduces this risk. The collabora- tion with Mitsubishi Electric has lasted over 25 years, and was strengthened by Mitsubishi Electric acquiring 15 per cent of Beijer Electronics Automation in 2006.
Other business risks like market risks, collaboration agreements, product liability, technological progress and dependency on staff are subject to continual analysis, and where necessary measures are taken to reduce the group’s risk exposure.
Currency Risks
Beijer Electronics has sales and purchasing in foreign currencies.
The majority of other external expenses and personnel
expenses are denominated in Swedish kronor, Euro and
Taiwan dollars. Normally, the group does not hedge its
various currency flows.
The group’s business areas are influenced by exchange rate variations, although in opposing directions. Automation is partially favored by a stronger krona, but it has a negative effect on HMI Products.
Financial Risks
Beijer Electronics’ financial risks are interest rate risk and the ability to service the group’s interest and debt. Interest- bearing liabilities amounted to SEK 157.4 m at year-end 2007. Group net debt was SEK 85.5 m.
The interest coverage ratio—operating profit plus financial revenues in relation to financial expenses—was a multiple of 21.7.
Sensitivity Analysis
Consolidated profits are primarily dependent on the cost of materials, personnel expenses and product sales.
The following sensitivity analysis proceeds from 2007 figures. It is static and some caution should be applied to its interpretation.
A +/-10 per cent change in sales increases/decreases
•
operating profit by SEK 42 m.
A +/-10 per cent change in cost of materials reduces/
•
increases operating profit by SEK 47 m.
A +/-10 per cent change in personnel expenses reduces/
•
increases operating profit by SEK 21 m.
Cost of Goods Sold by Currency
Swedish krona 8 %
Euro Other 56 %
19 %
US dollar 17 % Consolidated Sales by Currency
Swedish krona 30 %
Euro28 %
Other 14 %
Norwegian krona 13 %
US dollar 15 %
Organizational and Human Resources
Beijer Electronics’ organizational structure has three business areas—Automation, HMI Products, and after the acquisition of Westermo on january 1, 2008, Industrial Data Communications. The operations are conducted through three sub-groups—Beijer Electronics Automa- tion AB, Beijer Electronics Products AB and Westermo Teleindustri AB.
Parent company Beijer Electronics AB is a holding company with central functions like strategic development, accounting and finance, IT, HR, QA and the environment, and corpo- rate communication. The business areas are subsidiaries of Beijer Electronics AB.
The Automation business area, which sells agency pro- ducts on the Nordic and Baltic markets coordinates market- ing, procurement and logistics. Sales and technical support are located locally in the various countries. The technology functions are responsible for support, training and servicing.
There are also project functions in Sweden and Norway.
The HMI Products business area is responsible for the development of operator panels, as well as marketing and sales outside the Nordic and Baltic regions. HMI Products’ subsidiaries in Taiwan and Germany conduct their own development, production, marketing and sales, which are coordinated with the rest of the business area.
US and Chinese subsidiaries contribute technical support and servicing for collaboration partners and distributors on these markets, as well as undertaking some servicing of end-customers.
The Industrial Data Communications business area conducts its own development and production in industrial data communications. Marketing and sales are through proprietary sales enterprises in Sweden, the UK, Germany, France and Singapore. Westermo also has some 30 distribu- tors worldwide.
The group management is made up of the CEO, business area managers, the Quality Assurance and Environmental Manager/Human Resources Manager and the CFO.
Human Resources Philosophy
Beijer Electronics’ staff generate its profit and create share- holder value for the long term. Beijer Electronics must be able to offer attractive terms and conditions, and a favorable workplace with attractive developmental opportunities, in order to retain and hire skilled staff. Staff undergo various training programs in-house and externally on a continuous basis. Skills and commitment are the key concepts of the group’s human resources philosophy.
Openness and delegated responsibility are central to the corporation’s working methods. Profit centers with 5 to 25 staff mean that all staff members are close to the decision-making process.
The Automation business area had 188 of all employ- ees and HMI Products 252. Westermo/Industrial Data Communications, part of the group from year-end 2007, has 148 employees. Beijer Electronics is development and technology intensive, with some 60 per cent of its
0 05 10 15 20 25
%
0—24 25—29 30—34 35—39 40—44 45—49 50—54 55
Staff Age Profile
employees holding formal technology qualifications; 66 per cent of employees are graduates.
The average age of staff was 38 in 2007, with 51 per cent of the employee headcount aged 25 to 39. The male share was 70 per cent and female share 30 per cent. In the year, staff turnover was 10.2 per cent (10.0).
Beijer Electronics conducts a yearly global employee survey, whose purpose is to identify the group’s strengths and potential for improvement to increase efficiency and profitability and enhance employee well-being. Based on the results, each function jointly develops its remedial measures and prepares an action-plan executed through the coming year.
Quality Assurance & Environment
Beijer Electronics works actively on quality assurance and environmental issues. The Swedish companies’ ERP system has ISO 9001 (1997) and ISO 14001 (2002) accreditation.
The ERP system is documented in Beijer Electronics’ IT platform. The ERP system is presented in a portal enabling the user to access processes easily. The ERP system is a well- integrated part, and useful tool, in daily work.
Product accreditation is part of QA activities. For example, HMI Products’ panels are designed to satisfy standards and secure accreditation in various segments, like the marine sector.
The quality level of all our undertakings is Beijer Electronics’ prime competitive medium, and what gives us satisfied customers. Quality initiatives are one means of developing and rationalizing business. We monitor our performance in factors like delivery reliability, product quality and customer satisfaction through sampling and surveys. Staff and customer proposals for enhancements to products and working methods are also important for driving quality activities forward.
First and foremost, environmental initiatives are focused on the environmental impact of products. Extensive know- ledge of the environmental impact of various substances is a prerequisite for finding new alternatives, while close col- laborations with the group’s suppliers are another key driver of our environmental activities. The company’s standard products comply with the RoHS directive, whose stipula- tions include prohibition of the usage of lead in electrical and electronic products.
Graduates 66 %
Senior high school 34 % Education
Job Category
Technology 32 % Other/Admin.
29 % Sales/
Marketing 25 %
Production 14 %
Beijer Electronics AB
Industrial Data Communications Business Area
Westermo R&D AB Sweden
Westermo OnTime AS Norway
Westermo Data Comm. AB Sweden
Westermo Data Comm. Ltd.
UK
Westermo Data Comm. S.A.R.L.
France
Westermo Data Comm. Pte Ltd.
Singapore
Westermo Data Comm. GmbH Germany
Westermo Fastighets AB Sweden
HMI Products Business Area
Beijer Electronics Inc.
USA
Beijer Electronics Trading Co. Ltd.
China
Hitech Electronics Corp.
Taiwan
Elektronik-Systeme Lauer GmbH
& Co. KG, Germany **
Beijer Electronics Products AB Automation Business Area
Beijer Electronics AS Norway
Beijer Electronics A/S Denmark *
Beijer Electronics UAB Lithuania
Beijer Electronics SIA Latvia
Beijer Electronics Eesti OÜ Estonia
Beijer Electronics Oy Finland
Beijer Electronics
Automation AB Westermo
Teleindustri AB
* The merger of Beijer Electronics A/S and Brodersen Automation A/S from February 1, 2008 onwards.
** The merger of Beijer Electronics GmbH and Elektronik-Systeme Lauer GmbH from March 31, 2008 onwards.
HMI PRODUCTS
The HMI Products Business Area
The HMI Products business area develops, markets and sells operator panels globally. The business area offers user-friendly products that feature design and function to enhance customer efficiency and competitiveness.
Operations in 2007
The market for HMI (human machine interface) prod- ucts continued to grow in 2007 but did enter a more restrained phase, with slowdown tendencies, mainly in North America. Nevertheless, HMI Products was able to advance its positions, especially through the strategic acquisition of Lauer of Germany. This meant that overall, the business area was able to achieve its best year yet in terms of sales and profits.
Meanwhile, there were some problems than meant the business area was not fully able to match its organic growth estimates. Dollar depreciation resulted in sales in the US reducing in Swedish krona terms. Sales of new panels in the EXTER series increased robustly but did not fully compensate for the sales downturn from the previous generation of panels, CIMREX.
The acquisition of Lauer, reviewed in the adjoining page, was the highlight of the year. Lauer brought industrial PC products at the higher end of HMI-products. In the fall, HMI Products also launched new EXTER and H-panels.
Overall, this meant the business area strengthening and extending its product range, which is now complete for the differing customer needs of various markets.
In the fall, HMI Products signed a strategic agreement with Wonderware for the supply of hardware based on the same platform as the EXTER series. Wonderware is a world-leading industrial automation software vendor with over 450,000 sold licenses. Wonderware will be selling the hardware with its proprietary software on the global market.
HMI Products incorporated a subsidiary in Shanghai, China and opened a new office on the US East Coast in North Carolina in the year.
HMI Products introduced a new global organizational structure on January 1, 2007, with a coordinated central marketing, sales, product development and technical sup- port function.
The HMI Products Business Area’s Sales and Operating Profit, 2003-2007
2007 2006 2005 2004 2003 Sales, SEK m 465.4 392.5 295.2 173.4 148.5 Operating profit, SEK m 58.3 53.0 34.2 29.4 8.5 Operating margin, %% 12.5 13.5 11.6 16.9 5.7
HMI Products
Automation
Industrial Data
Communications
Development
Development in the year focused on additional panels in the EXTER and H-series. Two new compact panels in the EXTER series were launched in fall 2007, thus making the EXTER series product family complete.
Substantial resources were also channeled into develop- ing a new universal software platform for the business area’s operator panels. This new software has more functionality, and is compatible with third party software. The develop- ment of the first version is in its final phase, with market launch scheduled for mid-2008.
The acquisition of Lauer also brought the business area access to a development function in Germany, which has been integrated into HMI Products’ global organization, which coordinates all technology development. Apart from Germany, the business area also has development centers in Malmö and Taiwan, employing a total of some 60 staff.
Development expenditure was SEK 42.8 m (40.8), or 9.2 per cent (10.4) of business area sales. SEK 10.9 m (10.9) of development expenditure was capitalized. SEK 6.6 m (5.5) of capitalized development expenditure was amortized.
Total development expenses of SEK 38.5 m (35.2) were reported to profits for the financial year.
Sales
HMI Products’ sales rose by 19 per cent to SEK 465.4 m (392.5) in 2007.
Lauer contributed SEK 68.5 m; excluding Lauer, sales increased somewhat year-on-year. Organic growth was 6 per cent adjusted for currency effects.
Sales on the business area’s biggest market—non-Nordic Europe—grew by 66 per cent to SEK 204.6 m (123.4).
Asian sales were SEK 115.2 m (106.1). Sales in Asia increased by 13 per cent in local currency terms. North American sales fell to SEK 68.5 m (83.2). Sales on the
Nordic market through the Automation business area grew to SEK 72.2 m (64.9).
Sales through Beijer Electronics’ own sales channels were SEK 360.8 m (281.2), and were 77 per cent (72) of business area sales. Sales through the brand label channels
16 %
17 %
62 % 55 %
22 % 28 %
Invoicing, HMI Products by Sales Channel
Brand label partners Automation business area Own sales channels
2007 2006
The division of invoicing between various sales channels in the HMI Products business area in 2007 and 2006.
HMI Products has seven sales offices and collaborates with over
60 distributors globally.
Mitsubishi Electric, ABB and SEW Eurodrive were SEK 104.6 m (110.4).
Operating Profit
Business area operating profit was SEK 58.1 m (53.0), equal to an operating margin of 12.5 per cent (13.5). Profit was subject to higher development expenses and negative currency effects. Operating margin was also affected by Lauer having a lower operating margin than the rest of the business area.
Strategic Acquisition—Lauer of Germany
On June 1, 2007, HMI Products acquired German HMI company Elektronik-Systeme Lauer. This acquisition was a big strategic step, strengthening HMI Products’ presence on the important German market, which represents some 40 per cent of the European HMI products market.
Lauer, founded in 1979, is an established and well-recog- nized player with a strong brand in Germany and the rest of continental Europe. The company has proprietary operator panels in the HMI segment, which complements the business area’s product range, mainly in the higher-end segment.
Lauer has a broad customer base and some 80 per cent of sales are to the German market. The company has pro- prietary sales resources in Germany, plus two resellers in the country and distributors in several European countries.
The company has an estimated market share in Germany of some 5 per cent. Lauer has some capacity for the pro- duction and final assembly of HMI products. Most of its production is outsourced.
In tandem with the acquisition, a rationalization package was decided, to increase profitability to the same level as the rest of the business area in the longer term. Integration with HMI Products’ German operation has gone as planned.
The two organizations have been merged and are located
in a joint office in Stuttgart.
Product ranges have been coordinated so HMI Products’
EXTER and H-series products will replace Lauer’s prod- ucts in the lower-end and mid-range segment. Sales will be under Lauer’s brand. Lauer’s industrial PC products, the EPC series in the high-end segment, will be launched through HMI Products’ other sales resources.
The rationalization package will generate substantial cost savings, while the business area secures a strong sales organization in continental Europe. After staff downsizing of some 15 per cent, the business area’s German operation now has a total of some 60 employees.
SEK m Rolling four quarters
Invoicing, HMI Products
SEK m Quarterly
0 20 40 60 80 100 120 140 160
0 60 120 180 240 300 360 420 480
1 2 3 4
2004 2005 2006 2007
1 2 3 4 1 2 3 4 1 2 3 4
The bars and left-hand scale indicate quarterly invoicing. The
curve and right-hand scale show rolling quarterly invoicing.
Lauer’s sales in 2007 progressed as planned, contributing SEK 70 m to business area sales in the year. In annualized terms, Lauer’s sales were some SEK 120 m. In total, the German operation will represent over 25 per cent of busi- ness area total sales.
HMI Products’ Business Model
The HMI Products business area develops, markets and sells HMI (human machine interface) products for vari- ous automation applications. Its customers are machine builders and system integrators worldwide.
Product development should be innovative, world lead- ing and a step ahead of competitors. Customers will be offered user-friendly, high-functionality products that com- municate and transform raw data into useful information.
Appearance and material choices are important parts of the hardware and software development process. Products should be compatible with virtually all the world’s auto- mation equipment manufacturers. Development includes design, testing and documentation.
The customer offering also includes tailoring products, technical support, servicing and training. The business area also includes the production and sale of LCD (liquid crystal display) modules, embedded in other electronics like testing and measuring equipment.
Marketing and sales of proprietary products is global but differs, depending on market and customer segment.
The marketing and sales channels are:
Proprietary subsidiaries in Germany, Taiwan, China
•
and the US.
The Automation business area handles sales in the
•
Nordic and Baltic regions, where Beijer Electronics is a leader.
A global distributor network.
•
Global corporations like ABB, Mitsubishi Electric and
•
SEW Eurodrive sell products on a brand label basis.
Long-term Goals
Secure positioning as one of the world’s largest independ-
•
ent suppliers of operator panels.
Achieve annual growth of 15 per cent.
•
Attain a minimum operating margin of 12 per cent.
•
Strategies
To extend sales resources with more distributors.
•
Consolidate in-house export resources.
•
Pursue continuous product development to remain at
•
the leading edge within HMI products, from intelligent LCD modules to PC-based operator panels.
Outsource a substantial share of production to contract
•
manufacturers to achieve high flexibility, specialization and cost efficiency.
Make strategic acquisitions to consolidate international
•
positioning further.
What HMI Products Does
The operations of the HMI Products business area include development, and some production, of operator panels and LCD modules that are marketed, distributed and sold globally.
Products
Beijer Electronics’ operator panels are used in industry to provide operators with quick and clear information on the operational status of machines and processes, thereby enhancing the productivity and availability of facilities.
HMI Products has a fully comprehensive product range for differing customer needs and markets. The range also includes single or multi-function LCD (Liquid Crystal Display) modules.
Production
Beijer Electronics outsources the majority of the group’s operator panel production to contract manufacturers. The group has three contract manufacturers, one in Sweden, one in Thailand and one in Germany. Beijer Electronics has in-house production of operator terminals and LCD modules in Taiwan.
Market and Customers
The business area markets and sells proprietary HMI products globally, focusing on Europe, North America and Asia. The global market for HMI products is worth some USD 1.5 bn. Operator panels have secured an increasing portion of the automation market over the last 10-15 years, with annual growth of some 5-6 per cent.
The HMI market can be divided into various seg-
ments—text panels, graphical panels, touch-screen panels
After the acquisitions of Lauer and Hitech, HMI Products now has a fully comprehensive product range for differing customer needs
and markets.
and PC-based operator panels, with previously, text panels dominating the market. In recent years, touch-screen panels and PC-based operator panels have taken an increasing market share.
The market is represented by all industrial sectors, with the largest individual customer groups being the automotive and food industries. The rest of the engineer- ing industry, chemical and pharmaceuticals industries, as well as packaging machinery, are each some 10 per cent of the market. The business area is also addressing adjacent markets as a vertical initiative in the marine sector, with accredited products from the EXTER and EPC series.
HMI Products’ biggest individual customers are Mitsubishi Electric and ABB, which sell brand label opera- tor panels. The business area’s sales resources sell products under Beijer Electronics brands. Sales are mainly through a network of distributors in Europe, North America and Asia.
German subsidiary Lauer has its registered office in Stuttgart, has its own sales resources in Germany, two resel- lers in the country, as well as distributors in most European countries. Lauer’s and HMI Products’ organizations in Germany have been coordinated. The subsidiary Hitech Electronics has its registered office in Taipei, Taiwan. A subsidiary was started up in Shanghai, China, in early 2007.
Beijer Electronics has a US subsidiary with registered office in Chicago and a branch in Los Angeles. A new office was started up on the US East Coast in North Carolina in 2007.
The foreign subsidiaries work actively with distributors, also supporting the business area’s brand label customers and global OEM customers on each market with technical support, servicing, and addressing end-customers.
Competition
The HMI sector is relatively fragmented with many players
active on the global market. The market is dominated by a cluster of major global corporations like Siemens of Germany, Schneider Electric/Proface of France and Rockwell of the US.
Regional competitors in Europe, like Omron of Japan, Pilz of Germany and Italy’s EXOR and ESA are additional.
US competitors include GE Fanuc, Eaton Electrical and Horner.
Beijer Electronics is the fifth or sixth largest vendor worldwide, with a market share of over 5 per cent. The group is a dominant player on the Nordic market. Its market shares in China and Taiwan are some 15 per cent.
After the acquisition of Lauer of Germany, the market share in Germany is some 8 per cent.
HMI Products’ initiative in the marine sector was very successful
in Norway, Italy and elsewhere.
AUT OMA TION
The Automation business area markets and sells a broad automation product range on the Nordic and Baltic mar- kets. Automation supplies agency products from major international producers including operator systems from the HMI Products business area.
Operations in 2007
The Automation business area completed its aggressive initiatives in the Nordic and Baltic region in 2007, which was an eventful year with the start-up in Denmark, the acquisition of Brodersen and the development of previous acquisitions in Finland and the Baltic region.
Combined with positive organic growth, these initiatives meant that Automation was able to post a very sharp sales increase in 2007. Meanwhile, the business area also had its best year yet in terms of profits, despite substantial expenses from acquisitions and their integration.
The acquisition of Brodersen has gone very well, as reviewed on the adjoining page. The integration was facilitated by Brodersen pursuing the same strategy as Automation, with a focus on sales, technical support and servicing. Sales of Mitsubishi Electric’s automation prod- ucts on the Danish market have also gone as planned. Thus, annualized sales on the Danish market exceeded SEK 100 m, with good prospects of continued organic growth.
A strong business cycle contributed to good market growth.
The upturn was broad based, basically capturing all auto- mation segments. However, there has been some restraint in terms of large-scale manufacturing investments. The Norwegian market was especially strong with high demand from the shipping and offshore sectors.
In the year, Automation extended its sales and support resources, opening new offices in Karlstad and Luleå. The business area now has 21 offices in seven countries.
In the year, the business area secured a strategic order from the Swedish National Rail Administration’s Citytunnel project in Malmö for control systems solu- tions. Automation has developed a concept solution for rail traffic that integrates a standard system from Mitsubishi Electric with proprietary software. Beijer Electronics is prioritizing concept solutions for the growing infrastruc- ture markets in rail, tunnels, water and waste water, real estate and energy.
The Automation Business Area
AFFäRSOMRåDE AUTOMATION
The Automation Business Area’s Sales and Operating Profit, 2003-2007
2007 2006 2005 2004 2003 Sales, SEK m 571.3 408.6 370.7 336.7 326.9 Operating profit, 34.1 27.3 25.9 23.4 21.3 Operating profit, % 6.0 6.7 7.0 6.9 6.5
HMI Products
Automation
Industrial Data
Communications
Sales
The Automation business area was able to benefit from a good market, and with acquisitions, sales increased briskly in the year. Sales grew by 40 per cent to SEK 571.3 m (408.6), with acquisitions representing 30 per cent of this increase. Sales in Sweden were SEK 283.8 m (262.1). Sales in Norway rose by 19 per cent to SEK 129.3 m (109.1), amounting to SEK 82.3 m (0) in Denmark. Sales in Finland grew by 64 per cent to SEK 73.6 m (44.8).
Technical Support and Servicing
Beijer Electronics pursues close customer collaborations;
technical support and servicing are central elements of its customer offering, and important competitive factors. Fast and personal processing of customer requests are other priorities. These operations employ some 30 staff.
Training
Beijer Electronics has an extensive course program to dis- seminate automation know-how and skills to its customers.
Its training offerings include both scheduled and tailored courses that normally last two to three days. Activity was brisk in the year, with 115 scheduled and 80 tailored courses completed. There were 1,150 participants.
Operating Profit
Business area operating profit increased by 25 per cent to SEK 34.1 m (27.3), equal to an operating margin of 6.0 per cent (6.7). This improvement is due to increased volumes. Meanwhile, profits were subject to non-recurring expenses for the acquisition of Brodersen and the start-up in Denmark totaling SEK 2.6 m. Margins were also affected by some acquired businesses having lower margins than the rest of the business area.
AFFäRSOMRåDE AUTOMATION
Invoicing, Automation by Product Category
Control Systems Operator Systems Drive Systems Projects and Other
22 % 14 %
37 %
27 % 2007
20 % 8 %
43 %
29 % 2006
