Strongest quarterly results to date

The second quarter of 2015 was the Beijer Alma Group’s strongest quarter to date
in terms of earnings
CEO’s comments
The second quarter of 2015 was the Beijer Alma Group’s strongest quarter to date
in terms of earnings. Profit after net financial items amounted to MSEK 125,
corresponding to a year-on-year increase of MSEK 9. The Group’s earnings and
operating margin were impacted positively by exchange-rate effects, as well as
by the extensive changes made to the product compared with the year-earlier
period. The operating margin was 13.9 percent (13.4).

Invoicing rose 6 percent during the quarter. However, when adjusted for
acquisitions and exchange-rate effects, invoicing fell 3 percent. The pattern
noted in earlier quarters continued. Operations that are dependent on the
general economic trend were relatively stable and sales of telecom products were
weak, while Lesjöfors’s Chassis Springs operations and Habia’s sales to
customers in the nuclear power segment displayed a high level of growth.

Cash flow after capital expenditures was impacted positively by a reduction in
working capital in Lesjöfors and Habia and totaled MSEK 89 (78) for the quarter.
Net debt at the end of the quarter amounted to MSEK 402 (255).

Lesjöfors’s invoicing rose 21 percent during the quarter. Adjusted for
acquisitions and exchange-rate effects, the increase totaled 9 percent. The
entire increase was attributable to the company’s Chassis Springs operations,
where sales rose 26 percent, adjusted for exchange-rate effects. The increase
since the start of the year was 14 percent. After a temporary dip in 2014,
record-breaking sales were reported in 2015. The company’s sales are seasonal by
nature and, although the peak season passed in the second quarter, demand in the
third quarter is expected to continue to exceed the levels reported in the
preceding year.

Adjusted for acquisitions and exchange-rate effects, sales of industrial springs
increased 1 percent. All regions reported largely stable invoicing compared with
the year-earlier period. However, order bookings were lower than invoicing in
the industrial springs segment over the past three months.

Operating profit for the Lesjöfors Group amounted to MSEK 113, compared with
MSEK 88 in the corresponding quarter in 2014. The operating margin was impacted
positively by the company’s increased sales of chassis springs.

Habia’s invoicing fell 14 percent in the second quarter. Adjusted for exchange
-rate effects, the decrease was 23 percent. This sharp decline was attributable
to weaker telecom sales than in the year-earlier period. The comparative data
for the preceding year was also record-high. The company’s order bookings
indicate that demand will improve in the coming months. The company no longer
produces telecom products in Sweden and its production equipment has been
relocated to China. Once the move is complete, the company’s total production
capacity will increase slightly compared with previous years, while its
production costs will be reduced.

Adjusted for exchange-rate effects, invoicing in the company’s other product
areas was in line with the year-earlier period. However, order bookings
 increased to a number of orders received by Habia from customers in the nuclear
power segment during the quarter. These orders will entail a high production
capacity and invoicing in the coming quarters.

Operating profit amounted to MSEK 18 (22). The operating margin was also
slightly lower than in the year-earlier period. This decline in profitability
was due to weaker sales of telecom products.

Beijer Tech’s invoicing fell 7 percent during the second quarter. This decline
was attributable to the Industry business area, while Fluid Technology reported
somewhat higher invoicing than in the year-earlier period. Within the industrial
segment, weak trends were primarily noted in the operations focused on offshore
and foundries. Operating profit totaled MSEK 7, compared with MSEK 14 in the
corresponding quarter in 2014. The operating margin also fell during the period.

Staffan Andersson assumed the position as the new President of Beijer Tech in
April. Over the past few months, a number of organization changes were initiated
and carried out in the company, including the hiring of a new CFO.

Outlook
We expect the trend in the general industrial segment to remain stable or weaken
slightly. However, this will be offset by strong demand in Lesjöfors’s Chassis
Springs business area and Habia’s nuclear power operations. These trends are
expected to continue during the autumn. We also expect an increase in demand
from Habia’s telecom customers during the coming months.

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 that focuses on
component production and industrial supplies. The Group includes Lesjöfors, one
of Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest
manufacturers of custom-designed cables and Beijer Tech, with strong positions
in industrial supplies in the Nordic region. Beijer Alma is listed on NASDAQ OMX
Stockholm Mid Cap.

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