F a g e r h u lt a n n u a l r e p o r t 2 0 0 9
w w w. F a g e r h u lt . C o M
Fagerhult annual report 2009
a D D r e S S e S aB Fagerhult (publ) SE566 80 Habo Sweden
Telephone +46 36 10 85 00 Fax +46 36 10 87 80 Fagerhults Belysning aB SE566 80 Habo Sweden
Telephone +46 36 10 85 00 Fax +46 36 10 86 99 Schubergsvägen 20 Box 74
SE311 21 Falkenberg Sweden
Telephone +46 346 71 82 00 Fax +46 346 71 82 40 Fyrvaktaregatan 7 SE296 35 Åhus Sweden
Telephone +46 44 28 98 00 Fax +46 44 28 98 38 ateljé lyktan aB SE296 81 Åhus Sweden
Telephone +46 44 28 98 00 Fax +46 44 28 98 38 elenco lighting aB Almenäsvägen 18 SE506 32 Borås Sweden
Telephone +46 33 10 24 65 Fax +46 33 13 21 91 Fagerhults Belysning Sweden aB SE566 80 Habo Sweden
Telephone +46 36 10 85 00 Fax +46 36 10 86 99 Fagerhult retail aB Rinnavägen 12 SE517 33 Bollebygd Sweden
Telephone +46 33 23 66 00 Fax +46 33 28 58 00
Fagerhult aS Sluseholmen 8A Dk2450 Copenhagen Denmark
Telephone +45 43 55 37 00 Fax +45 43 55 37 30 Fagerhult lighting limited 50 Southwark Street London, SE1 1UN England
Telephone +44 20 7403 4123 Fax +44 20 7378 0906 Fagerhult oÜ Artelli 10c 10621 Tallinn Estonia
Telephone +372 6 507 901 Fax +372 6 507 900 Fagerhult oY Pasilankatu 14 FI002 40 Helsinki Finland
Telephone +358 9 777 1580 Fax +358 9 777 15 888 Fagerhult France 46, Av. Chanoine Cartellier F69230 StGenisLaval (Rhône)
France
Telephone +33 47 267 8080 Fax +33 47 267 0633 Fagerhult lighting – Dubai Branch
Box 126287 Dubai – U.A.E. United Arab Emirates Telephone +971 4329 7120 Fax +971 4329 7130 Fagerhult BV
Energieweg 9, Postbus 200 NL3400 AE IJsselstein Holland
Telephone +31 30 688 99 00 Fax +31 30 688 99 44
Fagerhult lighting Systems (Suzhou) Co ltd.
No 11 in Genway 12th work shop10 Gangtian Road
ZIP (Suzhou Industrial Park) Suzhou 215021 China Telephone +86 512 62 83 86 76 Fax + 86 512 62 83 86 96 Fagerhult aS
Aslakveien 14 Postboks 134, Røa NO0702 Oslo Norway
Telephone +47 22 06 55 00 Fax +47 22 50 85 40 Fagerhult Sp.z.o.o. Al. Jerozolimske 162 PL02342 warszaw Poland
Telephone +48 22 501 6640 Fax +48 22 501 6639 Fagerhult Spb V.O. Srednii pr. 48 199178 St Petersburg Russia
Telephone +7 812 380 0148 Fax +7 812 335 1138 Fagerhult B.Spasskaia 12/16 129090 moscow Russia
Telephone/fax +7 495 564 8419 Fagerhult Sl
C/Estocolmo No 13 ES282 30 Las Rozas, madrid Spain
Telephone +34 91 640 7246 Fax +34 91 637 0198 Commtech Commissioning Services Sa
C/Estocolmo No 13 ES282 30 Las Rozas, madrid Spain
Telephone +34 91 640 7246 Fax +34 91 637 0198
Fagerhult gmbh
Borsteler Chaussee 85–99A Postfach 610520
DE22425 Hamburg Germany
Telephone +49 40 51 43 84 40 Fax +49 40 511 70 79 Fagerhult Central europe gmbhDresdner Strasse 87 A1 A1200 Vienna Austria
Telephone +43 1 532 21790 Fax +43 1 532 217950 whitecroft lighting limited Burlington Street
AshtonunderLyne Lancashire OL7 OAX England
Telephone +44 870 5087 087 Fax +44 870 5084 210 eagle lighting Victoria 17–19 Jets Court
melbourne Airport, VIC 3045 Australia
Telephone +61 3 9344 7444 Fax +61 3 9344 7433 project lighting equipment ltd Unit F1
Calmount Park Ballymount Dublin 2 Ireland
Telephone +35 3 1426 0200 Fax +35 3 1429 9606 waco n.V.
Handelgemsesteenweg 80 B9890 Baaigem Belgium
Telephone +32 9362 4494 Fax +32 9277 5000
Production: Intellecta Corporate and Fagerhult. Printers: NRS Printing 2010. Photography: Brahl Fotografi (page 34). Nils Petter Dahle (page 39). Åke E:son Lindman (pages 23, 26, 31–33, 35). Örjan Henriksson (cover, page 6, 10–11, 14, 50, 52). Seth Joel / gettyimages (page 18). Lena koller (page 29). Sesse Lind / link images (page 43). Adam mørk (pages 22, 24). Peel media (page 22). picture garden / gettyimages (page 21). Chris Stein / gettyimages (page 37).
ISO No: 800.EXP.1.10.12.2
C o n t e n t S
Investing in Fagerhult 2
Fagerhult in brief 4
Comments from the Group CEO 6
About Fagerhult 10
External environment and markets 12
How Fagerhult creates value 16
Fagerhult’s business model 17
Goals and strategies 18
B r I l l I a n t w o r K D a Y 20 The art of largescale customisation 22
Design on the client’s terms 24
Safe solutions in demanding environments 26
F I n a n C I a l g l o w 28
New technologies, new possibilities 31
Systematic intelligence 33
when creativity meets effi ciency 34
g r e e n l I g h t 36
Sustainable lighting solutions 39 knowledge as a competitive advantage 40
Employees 42
The Fagerhult share and ownership structure 48
The Board 50
management 52
Five year overview 54
Administration report 55
Corporate governance 59
Income statements 64
Balance sheets 65
Change in equity 67
Cash fl ow analyses 68
Accounting principles 69
Notes 76
Signatures 94
Audit report 95
Calendar 96
Defi nitions 96
Addresses
On the cover: Fagerhult’s new fi ttings series Avion, was awarded the prestigious Red Dot Design Award in 2009. Designer: Propeller.
F a g e r h u l t a n n u a l r e p o r t
2 0 0 9
I N V E S T I N G I N F A G E R H U LT
Knowledge of lighting and insight into our client’s needs are always at the core of how we create value. Our clients receive more than just products – they receive all-inclusive lighting solutions. The right lighting ensures that people work better, stay healthier and feel more secure. The right lighting can also lead to major financial gains, since today’s smart systems consume increasingly less energy. In turn, such solu tions lead to important environmental advantages, as customers look to decrease their environmental impact.
Of course, our all-inclusive solutions, client insight, and
I N V E S T I N G I N F A G E R H U LT
strong brand identity also create sustainable benefits for our shareholders in the long-term. Since Bertil Svensson founded Fagerhult’s first factory in 1945, we have a parti- cularly stable history of profitable growth and good yields, and today we have become the Nordic region’s largest, and one of Europe’s leading, operators in the lighting industry.
To date, we have never reported a deficit, and considering
the possibilities we have before us for positive growth, this
looks set to continue. In the following pages, we describe
our strategies and choices for the future in greater detail.
4 5
F A G E R H U LT I N B R I E F
B u S I n e S S C o n C e p t Fagerhult’s business concept is to develop, manufacture and
market lighting systems for public environments.
V I S I o n
Fagerhult’s vision is to create energy- efficient lighting solutions contributing to an ergonomically sound environment
in an international arena.
V a l u e S Passion for innovation.
Entrepreneurship.
Customer obsession.
Performance culture.
t h I S I S a B F a g e r h u l t
Fagerhult is one of Europe’s leading lighting groups with approximately 2,000 employees and operations in 17 countries.
We create modern products and exciting, energy-efficient and environmentally-adapted lighting installations, successfully integrated into their individual environments. The Group includes such strong brands as Fagerhult, Waco,
Ateljé Lyktan and Whitecroft Lighting. AB Fagerhult is listed on the Nasdaq OMX Nordic Exchange in Stockholm.
We offer tailor-made solutions for, amongst other products:
a) Sweden: 29%
b) Other Nordic countries: 20%
c) Europe: 43%
d) Rest of the world: 8%
a)
b) c)
d)
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sales, msek 1,232 1,410 1,475 1,403 1,382 1,759 2,162 2,527 2,770 2,436 Operating profit, mSEk 131 135 132 101 55 108 95 198 272 104
1 000 2 000
3 000 300
200
100 3,000
2 ,000
1,000
Fig. 1
SaleS anD proFIt DeVelopMent
Fig. 2
SaleS per MarKet
oFFICe lIghtIng SChool lIghtIng InDuStrIal lIghtIng retaIl lIghtIng outDoor lIghtIng
Products and solu- tions for both modern office environments and hotels and other public spaces.
Systems, applications and products for industrial and other demanding environ- ments.
Lighting solutions and service for boutiques, developed from the knowledge and experi- ence of the importance of light to consumer attitude and behaviour.
Lighting solutions specially adapted for educational premises, from lecture halls to study rooms and libraries.
Medical technical equipment, such as panels for intensive care units and treat- ment rooms, and dialysis columns in hospitals.
Lighting for public spaces such as roads, streets and parks as well as architectural lighting.
health anD hoSpItal Care proDuCtS
4 5
F A G E R H U LT I N B R I E F
o p e r a t I n g M a r g I n
4.3%
5.87
2,436
M S E K104.2
M S E KS E K
t h e p a S t Y e a r n e t S a l e S
o p e r a t I n g p r o F I t
e a r n I n g S p e r S h a r e new group Ceo: Johan Hjertonsson took on the role
of Group CEO in May.
eConoMIC CYCle eFFeCtS: A continued weak eco- nomic cycle has negatively impacted the earnings trend. Order inflow was 5 percent lower in comparison with the equivalent operations in 2008, however, demand stabilised during the second half of the year.
BuSIneSS area-SpeCIFIC eFFeCtS: The business area Professional Lighting saw total sales decline by 4.4 percent due to the downturn in the economy.
However, sales increased in Holland, Australia, United Arab Emirates and Ireland. The Business Area Retail Lighting was affected by a downturn in sales of 32 percent due to the very weak market development, although there are signs of increased market activity within the segment. The Business Area Outdoor Light- ing saw decreased net sales from msek 175 to msek 172, although here also the conditions are positive for a higher level of net sales in the near future.
StruCtural MeaSureS: The decision was made to phase out the manufacturing plants in Falkenberg and Borås and transfer production to Habo, Åhus and China. This decision negatively impacted annual income for 2009 by msek 35, although the termination of operations at these factories, together with the other reorganisational measures, is expected to result in future savings of msek 40 per year.
new FaCtorY: An Australian manufacturing plant was opened in April.
new aCquISItIonS: Fagerhult S.L. and Commtech Commissioning Services S.A. in Spain were acquired during the year. The acquisition of the Belgian lighting company, Waco, was completed.
BranD CeleBratIon: Ateljé Lyktan celebrated its 75th year with, amongst other things, the produc- tion of a jubilee light fitting in carbon-fibre with LED technology, the design for which was inspired by the sports car Koenigsegg’s rear lights.
prIze-wInnIng proDuCtS: Fagerhult’s new lighting fittings Avion and Catwalk Spotlights & Downlights were both awarded with the Red Dot Design Award.
(Avion is featured on the cover of the annual report.)
6 7
“we are goIng to Be eVen More oFFenSIVe In our DrIVe to oFFer More
than JuSt proDuCtS – we wIll oFFer
all-InCluSIVe SolutIonS anD ConCeptS.”
6 7
C O M M E N T S F R O M T H E G R O U p C E O
t he effects of the financial crisis and the weak economic cycle were issues high on the agenda in May 2009 when I assumed the position of CEO for the Fagerhult Group. In hindsight, this was also a tough year. The financial crisis impacted the order inflow significantly, and we had to strive to really show our capacity for business and adaptation under very difficult market conditions. However, in spite of the turbulence, it was an exciting year full of new developments, with many positive elements and new ideas coming to the fore. Most importantly, we began to establish a steady foundation on which Fager- hult will stand when the economic climate improves – and then we will be ready for major successes.
S T R U C T U R A L M E A S U R E S T O D E A L W I T H L O W E R V O L U M E S
Let me first say something about the manner in which the financial crisis impacted the market during the year. When order inflow decreased as a result of the weaker economic cycle, production had to be quickly adapted to the decreased volumes. Consequently, Fagerhult executed a number of tough structural mea- sures during the year. The most difficult decisions concerned the reduction of the number of employees and the phasing out of the manufacturing plants in Borås and Falkenberg. The phasing out was possible as extensive investment in production technology, primarily in Fagerhult’s major factory in Habo, now means that production can be increased with fewer factories. In August, Employment Act negotiations were initi- ated and, thereafter, Fagerhult worked very closely throughout the entire process with both union repre- sentatives and local authorities. The phasing out work is progressing according to plan and is expected to be completed in the first quarter of 2010. When all of the restructuring plans initiated in 2009 are com- pleted, the Group will see a saving of msek 40 per year.
As expected, the weak economic climate negatively affected net sales and income for the entire year.
However, it is worth noting that the cash flow during the year was strong and Fagerhult also defended its gross margins very well which, amongst other things, is evidence that we have been able to maintain our price levels.
p O S I T I V E L O N G - T E R M S I G N S
Fagerhult is a company working within the latter end of the economic cycle and it is our assessment that
the majority of our markets will remain weak during 2010. But this does not mean that we see a dark period
ahead of us. Fagerhult quickly adapted its costs to the decrease in market volumes and the company’s good
reputation in the market means that we are well positioned for competition in the next few years.
8 9
C O M M E N T S F R O M T H E G R O U p C E O
Furthermore, there are a number of applicable factors which, in the long-term, will create a positive and open market for new business possibilities. These factors include, for example, new legislation, directives for environmental efficiency measures and, not least, exciting changes in technological preferences towards LED and intelligent lighting systems. All of these will impact the clients’ desire to modernise and enhance the efficiency of their lighting solutions.
Fagerhult’s strategy continues to be to grow both organically and via acquisition, with continued com- mitment to international investment. We will always strive to be the industry leader. Fagerhult is already the industry leader in the Nordic Region and the goal is to be in the top three in all markets and segments in which we choose to operate. Otherwise, the phrase, ”Dig deep where you stand” sums up Fagerhult’s current operations quite well – the largest growth opportunities are found in the markets in which the company is already established. One example is retail lighting, which was hit hard by the economic downturn, but where the Nordic market will be of particular interest when the economic situation improves. The same can be said of outdoor lighting, a market which is expected to continue to grow dur- ing the forthcoming years, due to the EU’s energy directives on the phasing out of light sources involving mercury amongst other things.
F R O M p R O D U C T S T O S O L U T I O N S
I mentioned initially that during the year we established a stable base for future development. This refers to Fagerhult becoming even more offensive in its drive to offer more than just products – we will offer all- inclusive solutions and concepts. Fagerhult’s solutions are not just based on the production of the actual lighting fixtures themselves, but also on the concept that, with our expertise to support them, clients can also drastically improve their finances and decrease their environmental impact. The lighting systems offered by Fagerhult today, consumes only one quarter of the energy previously required, which saves money and decreases the environmental impact for the client.
The base we have established is comprised of a number of strategic strengths. One of our most impor-
tant strengths is our deep understanding of our clients’ needs. Fagerhult is widely trusted among our cli-
ents for our level of knowledge, our quality and the reliability of our deliveries, and we will certainly
continue to build on these areas. We constantly strive to have a greater understanding of what our cli-
ents look for, regardless of whether this is lighting to help make people feel better, design quality, or cost
and environmental efficiency.
8 9
C O M M E N T S F R O M T H E G R O U p C E O
A K N O W L E D G E - B A S E D C O M p A N Y W I T H p O T E N T I A L
Another important strength for the future is our brand identity. A strong brand doesn’t only impact the clients’ willingness to pay, it also increases the possibility for participation and competition in major pro- jects. A strong brand image is also an advantage when the time comes to expand into new segments.
Today, Fagerhult works with a number of various brands in a number of different markets. The next step is a clearer brand strategy.
A third strategic strength is innovational power. The current technological shift towards LED lighting and intelligent control systems opens the way for new solutions in efficiency and design. Fagerhult’s know- ledge-based approach means that we have every chance of leading the industry in the development of new and creative solutions and products.
F O C U S O N E N V I R O N M E N T A L I S S U E S
Of course, the increased focus in society today on energy saving provides business possibilities, but it also impacts our own work with the environment, and social responsibility. We see our work with sustainabil- ity as a continual process, a process which is, and will remain, a natural part of both our everyday life and the everyday life of our clients. Beginning in 2008, Fagerhult reported on its sustainability work on the basis of the guidelines found in the Global Reporting Initiative (GRI). During 2009, we have, amongst other things, undertaken a review of our governance documents and have produced a revised code of ethics, which now applies for the entire group. During 2010, we will continue to develop and systemise our sustainability work.
In conclusion, I wish to say something about the Fagerhult culture: Fagerhult’s success is created by the people in the group. With our personnel’s documented innovational power, performance capabilities, focus on entrepreneurship and understanding of our clients, I am convinced that we can face 2010 with confidence.
Habo, March 2010
J O H A N H J E R T O N S S O N
10 11
FAGER HULT
AB Fagerhult is the Nordic Region’s largest lighting group and one of Europe’s leading players in the industry. The Group has operations in 17 countries with sales companies in Sweden, Norway, Denmark, Finland, Uk, Ireland, Holland, France, Spain, Germany, Austria, Estonia, Poland, Russia, the United Arab Emirates, Australia and China. manufac
turing units are found in Habo and Åhus in Sweden, manchester in the Uk, melbourne in Australia and Suzhou in
China. In the following pages we provide additional information concerning our market, our business model, our
strategies and our projects.
10 11 In the photo Orosso designed by Olle Lundberg.
Orosso was awarded the Red Dot Design Award 2006.
FAGER
HULT
12 13
E X T E R N A L E N V I R O N M E N T A N D M A R K E T S
S hifts in technology, changes in customer behaviour and new legislation – these are a few of the powerful forces characterising the lighting industry at this time. The result is a dynamic and exciting market with great international development potential for Fagerhult. Today, Fagerhult is the largest lighting group in the Nordic region. Fagerhult is one of the industry leaders in Europe and Australia. The Group is represented in a total of 17 countries.
F A G E R H U LT ’ S M A R K E T S
Fagerhult has the potential to expand into new countries, but above all, there is still a great deal to develop in existing markets. Today, our position is much stronger within the area of Professional Lighting, which delivers solutions, for example, for office lighting, school lighting, industry lighting and lighting in hospitals. Above all, Fagerhult is successful in the Nordic countries and within important European mar- kets, such as the United Kingdom, France and Germany.
Within the area of Retail Lighting, there is a huge growth potential. Fagerhult has a solid foundation to work from and has, still, only a relatively small share of the market. This segment has been hit hard by the downturn in the economy, but is set to become important in the future with retail lighting account- ing for a quarter of the entire European market. The company who can combine an understanding of how consumers’ purchasing behaviour is influenced by light, and who can translate this into energy- efficient and cost-effective solutions, has considerable potential for expansion in the area when the economy performs well.
Further growth potential lies in the area of Outdoor Lighting, prompted by the rapid phasing-out of mer- cury light bulbs and the growing demand for energy-efficient lighting systems. Today, Fagerhult’s opera- tions in this area are concentrated to the Nordic countries. There is a possibility of taking further market shares by, amongst other things, cooperation with the Spanish Indal Group; one of Europe’s largest play- ers in the outdoor lighting market.
N E W T E C H N O L O G Y D R I V E S D E V E L O p M E N T
One of the most important drivers behind market development is the extensive shift in technology that
is taking place in conjunction with the conversion to new, energy-efficient light bulbs. The development
towards LED-lighting, so-called Light Emitting Diodes, has continued over the last few years. LEDs were
first used as signal lighting, in traffic lights amongst other things, but a few years ago, the technology
began to be used for spot-lighting and facade lighting. This technology is now so advanced that LEDs can
also be used for general lighting at low and mid-levels, which opens up entirely new possibilities, both for
the lighting environment and the economy. The advantages of LEDs are significant, compared to older
light bulbs: LED lighting offers a long lifespan, energy efficiency, a lifespan that is unaffected by the num-
ber of times the light is switched on or off, and a light source containing no dangerous substances, such
as lead or mercury. In line with LED lighting’s efficiency, expected demand is rising as new solutions
become available.
12 13 Fagerhult’s lighting solution for the Swedish
Embassy in Berlin followed the architect’s theme of “Insight and Outlook.” The light is flexible with energy efficient T5 light sources.
“one oF the MoSt IMportant DrIVIng ForCeS BehInD MarKet DeVelopMentS IS
the eXtenSIVe teChnologICal ShIFt whICh IS unDerwaY anD whICh IS taKIng
plaCe In ConJunCtIon wIth the MoVe
to new, energY-eFFICIent lIght SourCeS.”
14 15
The development towards intelligent management systems is also intensive. By designing lighting solu-
tions on the basis of information technology, the system and fixtures can be made to track, for example, the amount of time people are present in a given premise, visibility conditions and so on. This can, in turn, lead to advantages for users in the form of both a better quality of life, improved production conditions and reduced energy usage. The light management system also makes it possible for clients to save time in maintenance, as the system can predict when something will happen with a light bulb.
R E G U L A T I O N S C O N T R O L D E M A N D
The lighting industry’s strong relationship to energy consumption implies that decisions on behalf of the authorities affect the market very concretely. The EU’s climate target to reduce carbon dioxide emissions by 30 percent by 2020 has had a marked effect on the market and has opened up new business opportu- nities. The EU’s so called 2016 Directive, which proposes to phase out all mercury-containing light bulbs over the course of a few years, is an example of the decisions generating orders for the lighting industry.
For example, 50 percent of all outdoor lighting consists of this old style of mercury light bulb, and this will need to be changed over the coming years.
Another decision affecting Fagerhult’s businesses is the EU Directive stipulating that real estate owners must energy-declare their buildings. This has led to real estate owners with older lighting systems start-
Open Box, designed by design agency Propeller, awarded the “Best of the Best” in Red Dot Design Award 2007. The year after, the Open Box also won the Design S / Lithuanian Design Award.
14 15
E X T E R N A L E N V I R O N M E N T A N D M A R K E T S
ing to look to effective solutions, which opens the possibility for Fagerhult to sell its modern, intelligent, complete systems.
C H A N G I N G C O N S U M E R B E H A V I O U R
Consumer behaviour is changing. An increasing number of people take the significance of light for their well being very seriously. The interest in design products and the possibilities that lighting design can offer has grown over several years. Today, health aspects, the form of a room and the atmosphere are equally as important as the technology and brightness was previously. There is also increasing price awareness when investing, whereby consumers pay great attention to the cost of the lighting system in comparison with its life expectancy. Consumers also look for solutions that can be tailored to meet their unique concept and demand an ever higher level of service and ensured delivery.
The consumer’s growing awareness about their own effects on the environment also implies that solu- tions dealing with energy consumption and their inherent reduction of climate impact are gaining ground. Parallel with this development, many consumers have a continued need for suitable solutions using existing technology.
F R A G M E N T E D C O M p E T I T I O N
As regards competition, the lighting industry is far from being static. The industry is in the middle of a con- solidation phase, with a relatively high number of acquisitions and sales in the last five years. The industry is still fragmented, with many different types of market players. There can be many local differences in the competitive situation. In addition, the industry is seeing a move in a new direction, whereby new players are entering the ring. An example of this is electronics companies, which in line with the development of LED technology, see the possibility to develop their own products and solutions.
M E G A T R E N D S I N T H E E N V I R O N M E N T
In a larger perspective, there are a further three overall drivers, mega trends, all impacting the market in a different manner. Considering the fact that the population is ageing, there will continue to be a demand, for example, in hospitals, and for lighting systems of high quality suitable for use in care homes for the elderly. In line with the pensionable age rising at the same time, the need for lighting in workplaces suited to older people will also increase.
Another major trend is that people now tend to work more intensively during a given time period but, in turn, try to get more out of their free time. This fuels demand for both suitable light fixtures at work- places as well as lighting solutions for leisure facilities, such as hotels and spas. This also affects methods for competing for personnel.
The third trend deals with the importance of taking responsibility for your actions as regards the environ-
ment and society. The increasing awareness of this amongst businesses and individuals fuels the interest
for energy efficient lighting solutions throughout all of society.
16 17
H O W F A G E R H U LT C R E A T E S V A L U E
F agerhult’s business model is designed partly to encourage the creativity that our employees stand for in their daily work with clients, and partly to encourage the effectiveness needed to optimally utilise resources and synergies. Fagerhult can be found in 17 countries and, therefore, management of daily operations is structured geographically, but operationally, business activities can be grouped into three business areas. Professional Lighting, which offers solutions for offices, industries, schools, hotels and hospitals, is the largest business area with around 80 percent of sales. Retail Lighting is a growing area specialising in solutions for detailed trade and comprises 13 percent of sales. Outdoor Lighting, which is also a growing area, offers solutions for, for example, entrance ways, parking areas and comprises 7 percent of sales (read more about market conditions on page 12).
S Y N E R G I E S A N D C O S T E F F I C I E N C I E S
All three business areas are served by Operations, which takes responsibility for purchases, production and logistics. Organisationally this provides the possibility of synergies and cost efficiencies in the form of, for example, better coordination of resources. By coordinating purchases for the entire company and maintaining the number of suppliers, purchase expenses can decrease sharply. The ambition is to consis- tently hit the target of working smarter and quicker, without needing to reduce the quality of our prod- ucts. With sound controls on the entire supply chain, the firm can continue to offer the best solutions in the industry, yet still at competitive prices. Operations also form the foundations for the firm’s well-docu- mented ability to deliver reliably, which is an important competitive advantage. Today, production takes place in five factories; in Habo and Åhus in Sweden, Manchester in the UK, Suzhou in China, as well as Melbourne, Australia. The plants in Falkenberg and Borås will be closed down during 2010 (see CEO’s comments on page 6).
A C A D E M Y A N D B U S I N E S S R O L E S
Protecting our knowledge concerning lighting’s effect on people is an important factor in the business model. The knowledge base in the firm’s research and development currently consists of the Fagerhult Lighting Academy, which was established in 2004 in order to combine the firm’s knowledge, which refers to all aspects from lighting design to environmental impact. But the Fagerhult Lighting Academy has sev- eral important business roles. Being able to demonstrate your expertise is, for example, a major advan- tage when it comes to a company’s position in a new market. The Academy also plays an important role in integration work in the context of acquisitions, by educating new employees in the initiation period, as well as by identifying, emphasising on and developing the new employee’s spectra of competence.
A L W A Y S A N I N D U S T R Y L E A D E R
An important part of our value is also the powerful brands that are included in our firm, which provide extra weight in the different markets. In the United Kingdom, for example, Whitecroft Lighting is one of the market leaders, and in Europe, Waco is well known for products making creative use of light’s ability to shape and mould. In our cooperation with independent designers in order to produce new fixtures and systems, we always work collaboratively with industry leaders.
Work on sustainability issues permeates all levels of the company. We report our environmental work under
GRI guidelines. Read more on pages 18–19 and in our Sustainability Report on www.fagerhultgroup.com.
16 17
F A G E R H U LT ’ S B U S I N E S S M O D E L
B u S I n e S S a r e a
p r o F e S S I o n a l l I g h t I n g
Lighting solutions for public envi
ronments such as offices, schools, industrial structures, hospitals, hotels and museums.
mSEk 2007 2008 2009
Sales 1,763 2,049 1,958
Operating profit 153.1 217.1 130.0
Fig. 3
Share oF the group’S SaleS Change since the
previous year, + 6%
Fig. 4
orIgIn oF the InCoMe
a) Sweden: 27%
b) Other Nordic countries: 20%
c) Europe: 44%
d) Rest of the world: 9%
B r a n D S I n t h e g r o u p
B u S I n e S S a r e a
r e t a I l l I g h t I n g Solutions for retail environments specifically aimed at the signifi
cance of the lighting for customer relations and sales.
mSEk 2007 2008 2009
Sales 420 447 306
Operating profit 35.0 48.5 –11.4 Fig. 5
Share oF the group’S SaleS Change since the
previous year, – 3%
Fig. 6
orIgIn oF the InCoMe
a) Sweden: 26%
b) Other Nordic countries: 17%
c) Europe: 55%
d) Rest of the world: 2%
B u S I n e S S a r e a
o u t D o o r l I g h t I n g Solutions for outdoor lighting, e.g.
parks, walkways, recreational areas and facades.
mSEk 2007 2008 2009
Sales 153 175 172
Operating profit 2.5 2.9 –14.4 Fig. 7
Share oF the group’S SaleS Change since the
previous year, + 1%
Fig. 8
orIgIn oF the InCoMe
a) Sweden: 62%
b) Other Nordic countries: 27%
c) Europe: 11%
More information regarding 2009 can be found
in the Administration Report on page 55. More information regarding 2009 can be found
in the Administration Report on page 55. More information regarding 2009 can be found in the Administration Report on page 55.
80%
d) a) c) b)
7%
a) c) b) 13%
d) a) c) b)
o p e r a t I o n S
Joint responsibility for production, logistics and purchases create synergies. Production facilities located in Sweden (Habo and Åhus. Borås and Falkenberg under liquidation), England (manchester), China (Suzhou), as well as Australia (melbourne).
F a g e r h u l t l I g h t I n g a C a D e M Y
Our knowledge base. Here, we coordinate our research and training. Guaranteeing and continuously raising the competence of our salespeople and personnel through training, by means of an extensive network. make use of our leading edge when acquir
ing new companies. This leading edge is used when meeting the customer’s need for training on the importance of lighting.
18 19
G O A L S A N D S T R A T E G I E S
o u r M a I n g o a l S o u r S t r a t e g I e S
• Growth in existing markets
• Growth within the Retail lighting sector
• Growth within the Outdoor Lighting sector
• Maintain market leadership in the Nordic countries
• Reach a position within the top three in all markets and in all segments where we are active
• Offensive efforts towards being a leading player
• Increased internationalisation
• Deep customer insight as a basis for everything we do
• Increased focus in order to develop innovative solutions within all technologies
• Strengthen brand work
• Transition from selling only products, to selling complete solutions
• Decrease costs by finding synergies in manufacturing and purchasing
• Grow organically and through acquisition
• Increase our employees’ knowledge and awareness about our environmental impact
• Increase our clients’ awareness about our lighting solutions’ environmental impact
• Optimise raw products and energy consumption in our factories
• Optimise our choice of materials in our manufac
turing processes by comparing the environmental impact and taking into account transport
• Longterm cooperation with our suppliers
• Reach CO2 neutral production
• Continually decrease the company’s total energy consumption on a per electrical fitting basis
• Increase knowledge about the meaning and impor
tance of light and stir interest in Fagerhult’s solutions by taking part in various collaborations with univer
sities and high schools
• Take part in social activities with affiliated organisa
tions, industry organisations and administration
• Strive for an equal standard in our international opera
tions as found in our Swedish working environment conditions, working conditions and preventive health care
• Enlighten our suppliers concerning Fagerhult’s require
ments on working conditions and human rights
• Focus on leadership development
• Encourage employees’ internal career possibilities
• Contribute to good social development through lighting solutions, increasing people’s wellbeing
• Create positive work conditions for our coworkers regardless of country
• Develop Fagerhult as an attractive employer
long-terM ValueS
through SuStaInaBle StrategIeS
e n V I r o n M e n t
p e o p l e F I n a n C I a l p o S I t I o n
18 19
G O A L S A N D S T R A T E G I E S
w h a t w e a C h I e V e D I n 2 0 0 9 p r I o r I t I e S F o r 2 0 1 0
• Established several production efficiencies which, when fully implemented, are expected to save approximatley mSEk 40 annually
• Gained market shares in several key markets
• Established an Australian factory
• Received the Red Dot Design Award for products Avion and Catwalk
• New survey of the views of stakeholders internally and externally about Fagerhult’s sustainability work
• Implementing new code of conduct in the Group
• Initiate the process of Groupwide employee surveys
• Continued focus on leadership development
• Continued development of internal career paths
• All major fixings are fully recyclable and are made for easy disassembly and sorting
• As of 2009, Fagerhult’s Swedish electricity was sourced from hydro power plants as a renewable energy source
• 95 percent of all waste from Habo factory is recycled
• The plant in Åhus, as well as production units in Suzhou, China, manchester and Habo, are now environmentally certified according to ISO 14001
• Acted as the sponsor company for approximately forty students from Swedish and international colleges and universities
• Adopted a new code of conduct for the Group
• Initiated English lessons for some 200 Chinese employees
• Worked for the company’s home region, Södra Vättern
bygden, was certified as the home of the so called Tech
nology College
At Fagerhult we are always striving to be one of the leaders in the business, as we already are in the Nordic countries. Fagerhult’s goal is also to reach a position amongst the three leading players on each market and in each segment in which we choose to compete. In order to deliver long-term value we will need stamina. Financially, we are well prepared – we are known for our stable finances and we have, thus far, never had a year in which we have reported losses. We also need stamina when it comes to the environment and human resources. This is why we are striving to ensure that our sustainability work permeates throughout all levels of the company. Here, we describe our most important goals and efforts of our work. For further, more detailed informa- tion regarding the sustainability work, see the separate report on www.fagerhultgroup.com.
• Focus on brand strength
• Continued work with the technology shift to LED lighting
• Continued cost control
• Focus on better delivery capabilities to customers
Each client is unique and requires an individual light ergonomic and technical solution. Fagerhult’s knowledge con- cerning lighting’s effect on people is, therefore, fundamental to all projects, regardless of the projects’ size and scope. During 2009, we have assisted our clients with everything from the lighting of the UK’s first real media dis- trict to equipping Qatar’s most modern hospital. The following pages provide further information about our various assignments.
BRILL
IANT WORK
DAy
T H E A R T O F L A R G E S C A L E C U S T O m I S A T I O N
1. The UK’s first truly media-dedicated district, MediaCityUK, currently under construction in Salford, is inspired by media clusters in cities such as Dubai and Singapore. The first phase stretches over almost 15 hectares, making this one of Europe’s largest construction projects. It also represents an important project for Fagerhult, in which the ability to customize solu- tions for the client are tested to the full. The predominant tenant is the BBC, which is relocating five London-based units to Salford in 2011. Fagerhult’s subsidiary, Whitecroft Lighting, the market leader in the UK has, together, with the main contractor and architect, designed customized lighting solu- tions solely for this project. The result is hanging fluorescent-lamp fittings, with micro-prismatic anti-glare devices, which illuminate both the ceiling and floor – New Media Luminaire. So far, Whitecroft have supplied both cus- tomized and standard lighting solutions, amounting to a value of £1.2 mil- lion, to buildings across the entire area.
2. The lighting of schools and universities is a science in itself. Lighting impacts the ability to both learn and comprehend. During 2009, Whitecroft Lighting in the UK initiated a large project together with authorities, archi- tects and designers called “Building Schools for the Future”. The aim is to improve the student’s work environment, with a focus on light quality and sustainability issues. The picture shows the educational centre at Alsion, the Danish education, research and cultural centre.
3. No two workplaces are alike. When Millimeter Arkitekter in Stockholm moved into former police premises in southern Stockholm, the challenge was to introduce light and air into these originally gloomy spaces. The solu- tion was lighting from Fagerhult and a glass lantern for which Millimeter later received the Swedish award for glass design.
1.
2.
3.
24
D E S I G N O N T H E C L I E N T ’ S T E R m S
1. Fagerhult Retail has assisted many clients in finding the right light- ing solutions, from trendy Gina Tricot in Sweden to the deluxe Boscos flagship store in Moscow with interior design by the famous designer Karim Rashid (picture). Working with retail lighting demands an under- standing of psychology. A gloomily lit retail environment can cause a client to turn around in the doorway, whilst carefully prepared and attractive lighting can both strengthen an image and inspire the client to make further purchases. The right lighting tools are as decisive to a successful result, as the design aspect is. Evidence that Fagerhult are way ahead in their product development efforts is the fact that the fittings series Catwalk, developed solely with the needs of the retail sector in mind, was awarded the prestigious Red Dot Award for excel- lent design in 2009.
2. Can a lighting fitting have any shape or form? Of course. When Ateljé Lyktan celebrated its 75 year anniversary in 2009 it did it with, amongst other things, a specially designed fitting, playfully designed to resem- ble the rear lights of a Koenigsegg car.
3. The right lighting can enhance and emphasize a building’s architec- tural qualities. The photo shows the connection between Terminal 1 and Terminal 2 at Copenhagen airport.
1.
2.
24
3.
26
S A F E S O L U T I O N S I N D E m A N D I N G E N V I R O N m E N T S
1. Talk about climate challenges – when Dubai’s famous indoor ski slope was built in 2005, Fagerhult delivered a solution suited to the extreme conditions arising when a building located in the desert heat is filled with artificial snow.
2. Tough demands are put on supplies of equipment to hospitals; the picture shows the inten- sive care equipment at Karolinska University Hospital in Huddinge, Sweden. Two important hospital assignments in 2009 for the subsidiary, Whitecroft Lighting, referred to an order worth £5 million from the world-famous St Bartholomew Hospital in London, UK and an order from the future Al Wakrah Hospital in Qatar, which will start to accept patients in the first half of 2011. The latter project encompasses 70,000 m2, with administrative and clinical build- ings, accident and emergency, operating theatres, lecture theatres, intensive care units and X-ray rooms.
3. Sensitive environments, such as museums and historic buildings need suitable solutions that do not put strains on the exhibits or the interiors. The picture shows a solution with Wacos spotlight series, Orso Major, at the Borbiago Church just west of Venice in northern Italy.
2.
1.
26
3.
A new lighting system is a significant investment, but it is an investment that can pay off quickly. Today’s modern lighting systems can not only assist clients with improved lighting but can also contribute to the reduction of nearly three quarters of their energy consumption. Fagerhult are continuously developing new energy effective products and intelligent control systems.
FINAN
CIAL GLOW
S I D H U V U D
31 1.
S I D H U V U D
31 N E w T E C H N O L O G I E S , N E w P O S S I B I L I T I E S 1. The development towards LED technology, light-emitting diodes, is on the verge of revolutionising the entire lighting industry. It is not far- fetched to believe that a technological shift towards LED’s can be just as revolutionary as when the first fluorescent lamps broke through. The new technology not only opens up new opportunities for lighting design, it also leads to significant savings as a result of energy efficiency.
The user receives more light per energy unit and the lighting does not need to be replaced during its entire lifespan. LED’s have long been used in such applications as indication lights, in signs and in small fittings, but LED’s are now expected to be used as an alternative to the light bulb and halogen bulbs. In order to satisfy the customer’s clear curiosity about this business area, Fagerhult have gathered all their expertise on the website www.fagerhult-led.com. This is a virtual showroom, Fager- hult LED House, where the client gains knowledge about the opportuni- ties of LED technology. The picture shows The Media Shop, which can be found on the fourth floor of the house.
2. The student building at Chalmers University of Technology in Goth- enburg, Sweden, designed by Wingårdh architects in 2001, has a glazed façade which shines up like a lighthouse in the evening.
3. ABB Arena Syd in Västerås, Sweden is one of the world’s most modern floorball arenas. The ceiling is 12 meters in height, which puts great demands on the lighting solution. Fagerhult‘s modern fittings and con- trol systems allow the arena to be both adaptable and energy efficient.
2.
3.
32 33
32 33 S Y S T E m A T I C I N T E L L I G E N C E
In order to get the most out of a new lighting system, the requirements of the system must be considered. Are the lights supposed to automatically switch off at a certain time? Is the number of people in the room going to be the controlling factor? Will the strength of the lighting follow daylight?
Will lighting be able to switch between different types of atmospheres and moods? Fagerhult is one of the branch leaders when it comes to intel- ligent control systems. The picture shows the lecture hall at the Östra Senior High School in the Municipality of Huddinge, south of Stockholm, with Fagerhult’s flexible downlight Pleiad in the ceiling. The school was completed in 2005 and is characterised by light, openness and modern thinking as regards both lighting and acoustics.
34
w H E N C R E A T I V I T Y m E E T S E F F I C I E N C Y
1. An illuminated tube visually connecting all of the floors was requested when the University College CVU Öresund in Copenhagen, Denmark was built. Fagerhult produced a tailored solu- tion for this purpose following the architect’s descriptions.
2. Marrying design and function is a constant challenge. The picture shows a solution from the London offices of the architects, Austin-Smith:Lords with energy efficient ceiling fittings which both make the most of and enhance this classic milieu.
3. Fagerhult has many years of experience in finding the best and most modern solutions to enhance architectural qualities. The picture shows the Swedish headquarters of ITT Water &
Wastewaters in Sundbyberg. Another address to bear in mind is 110 Bishopsgate, London.
Heron Tower, designed by Kohn Pedersen, which will be completed in 2011 and will be one of the UK’s tallest buildings. Fagerhult are delivering the lighting solutions together with its sub- sidiary, Whitecroft Lighting. Fagerhult was able to be competitive by, amongst other things, sourcing certain parts of the production of fittings in the Group’s factory in China. In total, the Suzhou factory will deliver close to 10 ,000 products to London’s new skyscraper.
2.
1.
34
3.
Energy efficiency has always been a prestige word for Fagerhult. Knowledge in the area has become increasingly important as customers have come to understand that energy efficiency means profit in the form of a reduced envi- ronmental impact. If Fagerhult’s lighting systems can function on a quarter of previous energy consumption, the customer will also be able to reduce their impact on the climate. But it is also important to have an overall approach regarding environmental impact. Consequently, Fagerhult’s business activities are permeated with an environmen- tal perspective on choice of materials, packaging techniques and transport routes.
3.
GRE
EN LIGHT
38 39 1.
38 39 S U S T A I N A B L E L I G H T I N G S O L U T I O N S
1. Frescati in Stockholm is current evidence of LED technolo- gy’s breakthrough into the outdoor market. This was one of the first locations to install Fagerhult’s new outdoor fitting, Stela. Stela combines ground-breaking technology with a recycling mentality. LED technology allows carbon dioxide emissions to be reduced by up to 68 percent compared to a traditional solution, plus the fitting is manufactured from recycled aluminium. Furthermore, there is, in principle, no maintenance required during the fitting’s 100,000 hour lifespan.
2. For several years, Fagerhult has worked with customers to replace old energy intensive fluorescent lights with modern, energy-saving alternatives. The next stride in development comes in 2010 when the new fluorescent light, T5 Eco, will be standard in all Fagerhult’s fittings delivered with light sources.
T5 Eco is part of the new generation of fluorescent, in which the light source can be run at lower energy levels, while main- taining levels of light. The picture shows the award winning Open Box at KIT Finance Investment Bank in Moscow.
3. In February 2009, the super modern nursery, Steinsprang- ets Barnehage, was completed in Nordstrand outside Oslo.
Together with the architect Enerhaugen Arkitektkontor, Fagerhult have delivered lighting solutions serving both to maximise energy-savings, and to enhance the architecture.
2. 3.
40
k N O w L E D G E A S A C O m P E T I T I V E A D V A N T A G E 1. The significance, in terms of business strategy, of communicating a clear plan on climate issues and carbon dioxide emissions continues to grow for Fagerhult’s customers. In order to help clients in the right way, Fagerhult works with different knowledge and information processes.
Fagerhult Retails Green Lighting Concept is and example of this, assist- ing customers in finding an efficient lighting solution which simultane- ously makes a difference from an environmental perspective. One such customer is the Danish organic grocery chain, Irma. The result here was both an environment that reinforced the ecological lifestyle, and a sig- nificantly decreased impact on the climate.
2. During 2009, Fagerhult’s acquisition of the Belgian lighting company Waco was completed. Waco’s inspiring and powerfully designed prod- ucts, combined with Fagerhult’s energy effective lighting systems, establish a completely new, attractive all-encompassing concept on the market for retail lighting. The picture shows a solution with Waco’s flex- ible fitting series, Straight Edger, for Thierry Mugler’s boutique in Paris.
3. Waco’s solution for the Spanish designer Angel Schlesser’s flagship store in Madrid, also based on the Straight Edger series.
1.
2.
40
3.
42
EM PLOy EES
The skill, engagement, innovation capability and client knowledge of our personnel is a decisive factor in our success.
Developing Fagerhult’s brand as an employer is, therefore, of great strategic importance. maintenance and develop
ment of our skills, together with leadership development, are three key cornerstones in these efforts.
42
44
S I D H U V U D E M p L O Y E E S
F agerhult is a knowledge-based company with approximately 2,000 employees and operates in over 17 countries. The skill and commitment of its employees are critical success factors. Maintain- ing and developing our brand as an employer is, therefore, of great importance. We wish to create a sense of participation on many levels, from driving forces on a business level to individual devel- opment. An important tool in this process is the establishment of a strong employee culture.
T H E C U LT U R E W E A R E B U I L D I N G
The Fagerhult culture can be summarised as four key values: passion for innovation, a strong sense of entrepreneurship, a strong client focus and a clear performance-oriented culture. Passion for innovation means that we encourage our employees to be continuously on the hunt for information that can drive us forward in the area of new, cutting edge products and solutions. Exceptional products and good solu- tions are competitive advantages and strengthen both the brand and margins. A strong sense of entre- preneurship among employees allows us to encourage them to take responsibility for their areas, to move forward, daring to find new, unconventional solutions, rather than becoming stuck in the decision- making process. A constant focus on the client, punctual delivery, and attention to the client’s needs are natural parts of this. Finally, the Fagerhult culture’s origins lie in the fact that our employees dare to set ambitious goals and take pride in achieving them.
T H E F I R S T F O U N D A T I O N S T O N E : M A I N T A I N I N G S K I L L S
In our efforts to attract and retain the most qualified manpower, and strengthen Fagerhult’s brand as an employer, we have three foundation stones to work from. The first of these foundation stones is to ensure that skills are maintained. We work on several fronts in order to reach potential employees. For example, we work with higher education institutions in order to create positive and continuous contacts with both students and teachers and, in addition, we organise an annual mentorship programme for students. Dur- ing 2009, a total of 20 students took part in the programme. We also conduct trainee programmes on an ongoing basis. We wish to provide our trainees with a broad knowledge of the company’s flows and pro- cesses, to create networks and provide valuable experience at an international level. In 2009, five trainees took part in our two programmes, of which two trainees were placed with Whitecroft Lighting in Man- chester, England and three with Fagerhults Belysning in Sweden.
T H E S E C O N D F O U N D A T I O N S T O N E : S K I L L D E V E L O p M E N T
Fagerhult’s size makes the Group a labour market in itself. Internal flexibility is encouraged, as work
rotation increases opportunities for knowledge-sharing, and promotes networking and experience. To
further stimulate such internal flexibility, we aim, in the future, to offer all of our vacant positions via
our Intranet. During 2009, we also provided training in our Group language, English, for all our employ-
ees in China, in order to also increase their opportunities to become acquainted with all of Fagerhult’s
business activities. Since 2004, The Fagerhult Group has systemised the distribution of knowledge
within the Group through the Fagerhult Lighting Academy. The aim is to build a knowledge network on
44
S I D H U V U D
”the Fagerhult Culture Can Be SuMMarISeD aS Four Core ValueS: paSSIon For InnoVatIon,
Strong SenSe oF entrepreneur- ShIp, Strong ClIent FoCuS anD a Clear perForManCe-
orIenteD Culture.”
46 47
E M p L O Y E E S
lighting and its importance, partly as a means to raise the level of competence among existing person- nel and partly to offer the client new, unique skills.
T H E T H I R D F O U N D A T I O N S T O N E : M A N A G E M E N T D E V E L O p M E N T
Good management is the key to healthy growth. The purpose of our management development plan is to focus on developing and fostering our managers and those in other senior positions.
In addition to these three foundation stones, there are several other important aspects of our work. As Fagerhult’s employees are widely-distributed geographically, we have set up a new video conferencing system. The system is relatively expensive to run, but there are also great gains to be made. Fewer busi- ness trips make for more effective working hours and lower travel costs, while contributing to reduced environmental impact. Knowledge is more easily transferred, key skills are always easily accessible and communication is much more personal. So far, the Group has installed approximately 20 video confer- encing systems, and each one is used an average of 160 times a year.
E M p L O Y E E S A N D R E S p O N S I B I L I T Y M A T T E R S
Our international presence demands that employees take responsibility for both themselves and for oth- ers. The guidelines for this are detailed in our code of conduct, which everyone in the Group, from the Board and management to the individual employee are to follow. The code regulates, for example, our view on work relationships, diversity and equal opportunities. There are also guidelines on how we con- duct ourselves on the issues of donations, representation and sponsorship. In addition, the code regu- lates our view on environmental issues, our stance regarding the differences between countries’ various laws and statutes, agreements and other regulations that influence our business activities. We also com- municate our code of conduct to our business partners and expect them to follow this code.
H E A LT H A N D S A F E T Y
Furthermore, ensuring that our employees have a healthy work environment, that they receive good healthcare and are offered preventative healthcare are important success factors, not least for our facto- ries. On an annual basis, we undertake various types of training courses, promoting safety and health.
During 2009, for example, approximately 40 of our employees undertook a three day training course, focusing on the work environment and safety, with the goal that the employee and the company, together, could further improve the already positive work climate. During 2009, the Group reported a total of 24 work-related accidents resulting in more than one day of absence.
The most frequent cause of accidents was injuries from handling materials and mechanical equipment.
The number of reported cases of work-related injuries/illness leading to more than one day of absence at
our manufacturing facilities was 8. The majority of the injuries were strain injuries. During 2009, we had
an employee turnover equal to about 10 percent, which is roughly the same as the previous year. For fur-
ther information, we refer to Fagerhult’s sustainability report at www.fagerhultgroup.com.
46 47
E M p L O Y E E S
a) b)
a) men: 65% b) women: 35%
a) b)
a) men: 82% b) women: 18%
a) b)
c)
a) worked time: 95.1% b) more than 60 days: 2.5%
c) Less than 60 days: 2.4%
a)
b) c)
a) < 30 years: 28% b) 30–50 years: 51%
c) > 50 years: 21%
Fig. 9
nuMBer oF eMploYeeS per geographICal MarKet
Fig. 11
BoarD anD SenIor ManageMent BY genDer
Fig. 13
age DIStrIButIon
Fig. 10
eMploYeeS BY genDer
Fig. 12
aBSenCe Due to IllneSS In SweDen, the uK anD ChIna
Fig. 14
aVerage nuMBer eMploYeD a)
b) d)
a) Sweden: 48% b) Europe: 30%
c) Rest of the world: 16% d) Other Nordic countries: 6%
c)
400 800
1 200 Utlandet
Sverige
Year 2005 2006 2007 2008 2009
Sweden 1,049 1,089 1,098 1,071 909
Abroad 239 551 798 907 972
1,200 800
400
48 49
T H E F A G E R H U LT S H A R E A N D O W N E R S H I p S T R U C T U R E
B Fagerhult was listed on the Stockholm Stock Exchange in 1997 and was previously on the O-List.
The Fagerhult share has been traded on Nasdaq OMX, Nordic Exchange, Mid Cap list, Industrial Sector since 1 October 2006. A trading unit consists of 1 share. The abbreviated name is FAG
and the ISIN code is SE0000379844.
S H A R E C A p I T A L
Fagerhult’s share capital amounts to msek 65.5 (65.5), distributed among 12,850,000 shares, with a quo- tient value of sek 5.10 per share. The number of owned shares held by the company is 238,000, at a quo- tient value of SEK 1,213,800. All outstanding shares have the same amount of the Parent Company’s assets and profit, and are fully paid. Each share entitles one vote.
L I Q U I D W A R R A N T Y A G R E E M E N T
An agreement has been reached with HQ Bank in order to support the liquidity of the Fagerhult share within the boundaries of the Stockholm Stock Exchange system for liquidity warranties.
D I V I D E N D A N D D I V I D E N D p O L I C Y
AB Fagerhult’s long-term goal is to distribute dividends corresponding to 30–50 percent of the Group’s net income. At this dividend level, the Board of Directors considers itself to have a satisfactory cash flow for the financing of expected future developments. The Board of Directors proposes a dividend of sek 3.00 (5.50) per share to the Annual General Meeting, corresponding to a yield of 2.4 percent on the share price, as of 31 December 2009.
A C Q U I S I T I O N O F O W N S H A R E S
At the Annual General Meeting held 22 April 2009, it was resolved that the company would have the pos- sibility to acquire its own shares. This opportunity was not utilised during 2009. The number of outstand- ing shares amounts to 12,612,000. The Board of Directors proposes that the Annual General Meeting grant the Board continued authorization to acquire the company’s own shares until the next Annual General Meeting.
0 300 600 900 1,200 1,500
2009 2008
2007 2006
50 2005 90 130 170 210
250 Fagerhult
SIX Generalindex Carnegie Small Cap Index Number of shares sold, 1,000’s per month
© Fig. 15
Fagerhult Share’S FIVe Year oVerVIew
