Interim report, January–March

Continued weak market
CEO’s comments

Beijer Alma continues to be impacted by a weak market, although demand has not
deteriorated compared with the end of the preceding year. Invoicing in the first
quarter declined by 10 percent in comparable units, year-on-year. The decline
was amplified by the first quarter having fewer business days than the year
-earlier period since the Easter weekend was in March. The greatest decline was
experienced by Beijer Tech and Habia, although parts of Lesjöfors were also
impacted by lower demand. This was offset in part in Lesjöfors by strong demand
in Chassis Springs.

Order bookings experienced a better trend than invoicing and were in line with
the year-earlier period. Since order bookings were also higher than invoicing,
the stock of orders has increased by MSEK 44 since year-end. Earnings were
impacted by lower volumes and consolidated profit before tax was MSEK 74
compared with MSEK 98 in the year-earlier period. The operating margin declined
from 14.0 to 11.0 percent.

Lesjöfors’s invoicing was MSEK 382, down 4 percent year-on-year in comparable
units. The most substantial decline was experienced by Lesjöfors in Flat Strip
Components, which was impacted by low sales volumes in China. Industrial Springs
also experienced lower volumes during the quarter. However, Chassis Springs rose
by 7 percent during the first three months of the year. The demand for chassis
springs was positively impacted by the protracted and cold winter in northern
Europe. The increase in demand benefits Lesjöfors, which has greater delivery
performance than its competitors. Operating profit was MSEK 70 (78). The
operating margin declined during the quarter, the primary decrease in which was
attributable to Flat Strip Components. During the month, Lesjöfors acquired the
German spring company S&P Federnwerk, which generated sales of MSEK 140 in 2012.
The company has 70 employees. Following the acquisition, Lesjöfors generates
sales of about MSEK 600 in Germany, thus making it the single largest market for
the company. S&P Federnwerk will be consolidated as of the second quarter.

Habia’s invoicing amounted to MSEK 135, down 17 percent. The decline was
concentrated to the element of the operation that is not telecom related. Lower
invoicing was primarily due to the fact that no major defense or nuclear
projects have been invoiced this year, unlike the preceding year. However, the
broader industrial sector also experienced a decline in invoicing. Conversely,
telecom invoicing increased during the first quarter. Demand from telecom
customers has been strong and Habia has captured market shares, primarily in the
Chinese market. The overall decline in invoicing caused the operating profit to
decrease to MSEK 5 (15) for the first quarter. The operating margin was 3.9
percent, compared with 9.4 percent in the year-earlier period.

Beijer Tech was also impacted by the weaker demand scenario. The decline was
accentuated by the substantial dependence on Sweden and the Nordic region.
Invoicing totaled MSEK 187, down 16 percent year-on-year in comparable units.
Both Fluid Technology and Industrial Products were impacted by the decline,
although Fluid Technology was affected the most. The decline in Fluid Technology
was due in part to securing a number of major project orders in the year-earlier
period – which was not repeated this year – but also to lower overall demand.
Industrial Products experienced lower sales in all business areas, although the
decrease was particularly significant in input materials for foundries and
steelworks. Operating profit was MSEK 7 (12) for the first quarter. The
operating margin declined 3.6 percent (6.2). During the quarter, Beijer Tech
completed two minor acquisitions: PMU and Lubritek. PMU is included in the
interim financial statement, while Lubritek will be consolidated as of the
second quarter.

We do not currently foresee any signs of change in the overall demand scenario.
However, the second quarter should be positively impacted by seasonal effects
and improved demand in Chassis Springs. The stock of orders also increased
compared with year-end in both Habia and Lesjöfors. Invoicing volumes and
earnings should also benefit from a positive calendar effect. Due to the weaker
demand scenario, all Group companies are focused on efficiency and costs.

Bertil Persson
President and CEO
If you have any questions, please contact:
Bertil Persson, President and CEO, Telephone +46 8 506 427
50, bertil.persson@beijeralma.se
Jan Blomén, Chief Financial Officer, Telephone +46 18 15 71
60, jan.blomen@beijeralma.se
Beijer Alma AB (publ) is an international industrial group focused on component
production and industrial trading. The Group includes Lesjöfors, which is one of
Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest
manufacturers of custom-designed cables, and Beijer Tech, which holds strong
positions in industrial trading in the Nordic region. Beijer Alma is listed on
the NASDAQ OMX Stockholm Mid Cap list.