Stable demand

CEO’s comments

Invoicing continued to increase during the third quarter, albeit at a slower
pace than in the past.
The trend from the first half of the year continued, with favorable growth
reported by Habia, mainly driven by a high level of demand in the telecom
segment.However, the mild winter weather at the beginning of the year continued
to have a negative effect on Lesjöfors’s sales of chassis springs. The Beijer
Alma Group sells to several different industries, some of which are sensitive to
economic fluctuations and others which are not. The business segments with the
greatest dependence on the general economic situation were essentially stable
compared with the preceding year.

Profit after net financial items totaled MSEK 97, compared with MSEK 100 in the
year-earlier period. The operating margin fell to 12.8 percent (13.7). This
slight decline in profitability was mainly the result of changes in the Group’s
income structure, with lower income in Lesjöfors replaced by higher income in
Habia.

Cash flow amounted to MSEK 74 (80). The Beijer Alma Group maintained a strong
financial position. Net debt at the end of the period totaled MSEK 180 (178) and
the debt/equity ratio fell to 11 percent (12), which means that the Group has
sufficient resources to grow both organically and through corporate
acquisitions.

Lesjöfors’s invoicing amounted to MSEK 395, down 7 percent year-on-year. This
decline was attributable to weaker demand in the Chassis Springs business area,
whose sales fell 26 percent. Sales of chassis springs were impacted
significantly by the mild winter. However, a comparison with the figures for
2013 is challenging, since demand at the time was impacted by exceptionally
favorable weather conditions. Sales of industrial springs grew 2 percent. Demand
in the UK operations increased sharply. Germany also reported growth, while the
Nordic region remained stable. The conclusion of project transactions in the
telecom sector continued to exert pressure on the company’s income in China.

Operating profit amounted to MSEK 66, compared with MSEK 83 in the year-earlier
period, and the operating margin declined year-on-year. This decline in earnings
was fully attributable to Chassis Springs, while the Industry business area
reported an unchanged operating margin and earnings.

Habia’s invoicing rose 29 percent to MSEK 195. Telecom customers continued to
account for most of this increase. Sales of cables for base-station antennas
rose 61 percent. However, order bookings increased at a slower pace, which may
indicate that demand has now stabilized at a historically high level. Other
customer segments grew 10 percent. This improvement in invoicing was mainly
attributable to deliveries of cables used in nuclear power plants.

Operating profit increased to MSEK 24, compared with MSEK 15 in the year-earlier
period. The favorable capacity situation in the Telecom business area
contributed to the company’s improved earnings and higher operating margin.

Habia decided to relocate its entire manufacturing operation for cables for base
-station antennas to China. Preparations will be made in the fourth quarter of
2014 and the move is expected to be completed in the second half of 2015. The
company’s manufacturing capacity will also be expanded in conjunction with the
relocation.

Beijer Tech’s invoicing was essentially unchanged compared with the year-earlier
period and amounted to MSEK 181 (178). Operating profit rose to MSEK 13 (10),
resulting in an improved operating margin. The Fluid Technology business area
reported a strong sales and earnings trend, as well as a higher operating
margin. While the sales trend in Industrial Products was somewhat negative, the
business area maintained its earnings and reported a slightly stronger operating
margin.

In conclusion, the level of risk in the global economy has increased in recent
months. However, the demand situation is relatively stable compared with earlier
quarters.

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