2019 - cision · the westermo business entity was the big stand-out in the third quarter, achieving...

Third quarter• Order intake increased to 405 MSEK (372).• Net sales rose by 16% to 391 MSEK (338).• EBIT up by 69% to 29.9 MSEK (17.7). • Profi t after tax amounted to 18.8 MSEK (11.0).• Earnings per share were 0.65 SEK (0.38).• Acquisition of Neratec boosts Westermo.

Nine months • Order intake amounted to 1,150 MSEK (1,141).• Net sales rose by 10% to 1,143 MSEK (1,036).• EBIT up by 52% to 81.5 MSEK (53.7). • Profi t after tax amounted to 52.5 MSEK (31.1).• Earnings per share were 1.83 SEK (1.08).

1 JANUARY-30 SEPTEMBER 2019

A strong third quarter with continued growth investments

Interim Report 3 • 2019

2 B E I J E R E L E C T R O N I C S G R O U P 2 0 1 9

1 January–30 September 2019

Comments from CEO Per Samuelsson“beijer group accelerated its expansion in the third quarter, and things are moving in the right direction. Order intake increased, while sales returned good growth and EBIT improved. The earnings upturn is due to increased sales volumes, a wider gross margin and good cost control otherwise. Cash flow also started to head in the right direction.

We operate on markets where digitalization is in rapid growth across an increasingly connected world. Thus, our major product development initiatives focused on regenerating and expanding our product range across the Group’s three business entities, are continuing. These investments in future profitable growth also generate costs that are being charged to ongoing earnings. Some way into 2020, over half of our sales will be from products launched after 2016. Our organ i - zation has demonstrated very good capacity to trans- form customer needs into competitive solutions.

The Westermo business entity was the big stand-out in the third quarter, achieving record order intake, sales and earnings for a single quarter. After a long phase of capacity expansion, we can now conclude that our supply chain is working well, with greater delivery capacity and shorter

lead-times. Westermo’s goal-oriented focus on initiatives in network solutions for trains was supplemented by the acquisition of Swiss company Neratec, which further enhances Westermo’s customer offering. Meanwhile, product development addressing the new segments of power distribution and rail infrastructure are continuing.

The Beijer Electronics business entity achieved some sales increase and earnings improvement, mainly because of wider gross margins and good cost control. But as previously reported, the pattern from previous quarters is continuing, with effects from the phase-out of four older product generations, which are impacting order intake and sales. Prior to year-end, customers placed exceptionally large orders for products being phased out this year. This irregularity will persist for several quarters yet but will gradually taper off as transition to the new X2 series continues. In the first nine months of the year, the new X2 series represented 50% of business entity sales. Beijer Electronics is also launching its new Internet of Things platform under the proprietary brand Acirro+ in the fourth quarter. This platform consists of software and hardware, which enables secure communication with the cloud for our customers.

Interim Report for Beijer Electronics Group AB

After somewhat lower earnings in Q2, it feels positive to report a strong third quarter. per samuelsson, president & ceo


The Korenix business entity is following the plan set, making positive progress in terms of order intake and sales in the third quarter. Another positive was its order book, which was 50% larger at the end of the quarter than at the same point of 2018. Additionally, Korenix is still maintain-ing high product development activity, which will involve the progressive launch of a number of new products. This is also causing higher product development costs, which do exert a short-term profitability impact. However, there is potential for Korenix to approach break-even for the full year 2019.

Our view is that beijer group will still be able to increase sales and earnings for the full year 2019 compared to 2018.

The uncertainty regarding economic conditions in our business environment is persisting. We’re noting some slowdown from our customers in the UK due to ongoing Brexit negotiations. German automation customers are also more cautious, but otherwise, we’re not noting any significant demand slowdown from a cyclical downturn. Furthermore, we have strong order books, which are significantly larger for all business entities than for the same period of the previous year.

In a longer perspective, and against the background of the initiatives we’re conducting in each business segment, the Group is now well positioned for continued healthy and high growth. With increased sales volumes, we’re now converging on our margin target of 10%.”

The Group in the third quarterThe Group has been applying the new accounting Standard IFRS 16 Leases since 1 January 2019, see accounting policies on page 10. This new Standard does not have any material impact on the Group’s or business entities’ EBIT, or the Group’s net profit. The Consolidated Balance Sheet is materially impacted in the form of increased capital expenditure, as well as interest-bearing liabilities. The effects in the reporting period are reviewed on page 16.

The Group’s order intake increased by 9% to 405 MSEK (372) in the third quarter, with four percentage points sourced from the acquisition of Neratec. The Group’s sales rose by 16% to 391 MSEK (338). Adjusted for currency effects and acquisitions, sales increased by 9%. Westermo continued its brisk growth. Beijer Electronics and Korenix increased sales.


Business entity net sales and EBIT

Sales Quarter 3

EBITQuarter 3

Sales 9 mth.

EBIT9 mth.

MSEK 2019 2018 2019 2018 2019 2018 2019 2018

Beijer Electronics 180.0 174.5 12.3 8.9 562.4 539.9 44.3 30.0

Westermo 182.8 138.3 26.0 15.5 505.9 416.9 67.3 56.0

Korenix 33.3 30.6 -0.7 -0.2 93.4 92.0 -1.6 -2.3

Intra-group sales -4.7 -5.0 -18.3 -12.7

Group adjustments and parent company -7.7 -6.5 -28.5 -30.0

Beijer Electronics Group 391.4 338.4 29.9 17.7 1,143.4 1,036.1 81.5 53.7


Group order intake

MSEKRolling four quarters

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The bars and left-hand scale indicate quarterly sales. The curve and right-hand scale show rolling four quarter sales.

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2019

The Westermo business entity was the big stand-out in the third quarter. per samuelsson, president & ceo


The Group’s EBITDA increased by 67% to 63.1 MSEK (37.8). Earnings had an 11.6 MSEK positive impact from the new accounting Standard for leases and lease contracts (IFRS 16). IFRS 16 also negatively impacted depreciation and amortization by 11.0 MSEK. Depreciation and amor-tization was 33.1 MSEK (20.0). EBIT increased by 69% to 29.9 MSEK (17.7), with IFRS 16 exerting a net positive earnings impact of 0.6 MSEK, as well as positive currency effects of 2.6 MSEK. The EBIT margin was 7.6% (5.2). Total development expenditure was 41.2 MSEK (38.0), equivalent to 10.5% (11.2) of Group sales.

Profit before tax increased by 74% to 26.1 MSEK (15.0). Net financial income/expense was -3.8 MSEK (-2.7). Profit after estimated tax was 18.8 MSEK (11.0). Earnings per share after estimated tax were 0.65 SEK (0.38).

Nine monthsThe Group’s order intake was 1,150 MSEK (1,141). Sales increased by 10% to 1,143 MSEK (1,036). The Group’s EBITDA was 171.3 MSEK (109.9). Earnings were posi-tively impacted by 30.5 MSEK due to IFRS 16, which simultaneously had a negative 28.9 MSEK impact on depreciation and amortization. Depreciation and amor-tization was 89.8 MSEK (56.2). EBIT increased by 52% to 81.5 MSEK (53.7), with IFRS 16 positively impacting earnings by 1.6 MSEK net. The EBIT margin was 7.1% (5.2). Total development expenditure was 128.2 MSEK (117.5), corresponding to 11.2% (11.3) of the Group’s sales.

Profit before tax increased to 72.9 MSEK (46.7). Net financial income/expense was -8.6 MSEK (-7.1). Profit after estimated tax was 52.5 MSEK (31.1). Earnings per share after estimated tax were 1.83 SEK (1.08).


Some way into 2020, over half of our sales will be from products launched after 2016.per samuelsson, president & ceo


Beijer ElectronicsBusiness entity

Beijer Electronics followed a similar pattern in the third quarter as in the first half-year, where the transition to a new generation of products partly featured. Order intake decreased, and sales increased somewhat in the quarter, while EBIT improved.

Order intake progressed positively in Asia and increased in the US, while decreasing across Europe. The phase-out of four product families is creating irregularity between quarters, mainly impacting Europe.

This irregularity will taper off through forthcoming quarters, as transition to the new X2 series continues. In the first nine months of the year, the X2 series represented 50% of the business entity’s sales. At the end of the reporting period, Beijer Electronics’ orderbook was 21% larger than in the previous year, as well as several major customer projects expected to produce positive results.

The new US organization, with its partly new and stronger management, started to report increased order intake. However, sales decreased in US while Asia main-tained their positive progress, and Europe achieved some upturn.

The bars and left-hand scale indicate quarterly net sales. The curve and right-hand scale show rolling four quarter net sales.


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In the fourth quarter, the business entity is launching its new Internet of Things platform under the proprietary brand Acirro+. This platform consists of software and hardware, enabling secure communication with the cloud for our customers. Acirro+ will be marketed under a new software as a service (SaaS) revenue model, with hardware invoiced on delivery and software on a regular subscription.

Third quarterOrder intake was 165 MSEK (181) in the third quarter. Sales increased by 3% to 180.0 MSEK (174.5). EBITDA was 25.3 MSEK (16.5). Earnings were positively impacted by 5.3 MSEK due to IFRS 16, which simultaneously had a negative 4.7 MSEK impact on depreciation and amor-tization. Depreciation and amortization was 13.0 MSEK

(7.6). EBIT rose by 38% to 12.3 MSEK (8.9), with IFRS 16 exerting a net 0.6 MSEK positive impact. The EBIT margin was 6.8% (5.1).

Nine monthsOrder intake decreased to 534 MSEK (561). Sales increased by 4% to 562.4 MSEK (540.0). EBITDA was 80.7 MSEK (50.0). Earnings were positively impacted by 13.2 MSEK due to IFRS 16, which simultaneously had a negative 11.8 MSEK impact on depreciation and amortization. Depreciation and amortization was 36.4 MSEK (19.9). EBIT increased by 48% to 44.3 MSEK (30.0), with IFRS 16 exerting a net 1.4 MSEK positive impact. The EBIT margin expanded to 7.9% (5.6).


The Beijer Electronics business entity is launching its new Internet of Things platform under the proprietary brand Acirro+ in the fourth quarter. per samuelsson, president & ceo


Westermo made convincing progress, setting order intake, sales and EBIT records in the third quarter. Markets in Europe and Asia performed strongly, while the American market was more hesitant after a strong 2018. Order intake included some major orders placed by customers including Bombardier and Alstom, plus a breakthrough order from a subway project in Singapore.

To address high demand, Westermo has expanded capacity, adapted production, overcome bottlenecks and fine- tuned supply chains. Overall, these measures have resulted in more consistent production and shorter lead-times.

Targeted initiatives on network solutions for the power distribution and rail infrastructure segments continued as planned. Meanwhile, the launch of new products built on Westermo’s new hardware platform, with significantly improved bandwidth and speed performance, continues. Shipments have the new generation of operating system embedded—Westermo’s proprietary WeOS.

The acquisition of Neratec of Switzerland in early-July had a positive impact on Westermo’s order intake and sales in the quarter. Its earnings impact is marginally positive.

Third quarter Order intake increased by 27% to 213.9 MSEK (168.2) in the third quarter. Sales rose by 32% to 182.8 MSEK (138.3). EBITDA was 38.7 MSEK (22.6). Earnings were positively impacted by 3.1 MSEK due to IFRS 16, which simultaneously had a negative 3.4 MSEK impact on depreciation and amortization. Depreciation and amor-tization was 12.7 MSEK (7.1). EBIT increased by 67% to 26.0 MSEK (15.5), with IFRS 16 exerting a net 0.3 MSEK negative impact on earnings. The EBIT margin was 14.2% (11.2).

Nine monthsOrder intake was 542 MSEK (500). Sales increased by 21% to 505.9 MSEK (416.9). EBITDA amounted to

99.0 MSEK (76.4). Earnings were positively impacted by 7.8 MSEK due to IFRS 16, which simultaneously had a negative 8.5 MSEK impact on depreciation and amorti-zation. Depreciation and amortization was 31.7 MSEK (20.4). EBIT increased by 20% to 67.3 MSEK (56.0), with IFRS 16 exerting a net 0.7 MSEK negative impact on earnings. The EBIT margin was 13.3% (13.4).

WestermoBusiness entity

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Korenix made positive progress in terms of order intake and sales in the third quarter, with this business entity following the plan set. Its order book, which was 50% larger at the end of the quarter than at the same point of 2018, was positive.

Its partnership with the Beijer Electronics business entity has also intensified. Both business entities have identified several joint projects on the European market. Meanwhile, Korenix is also increasingly addressing Beijer Electronics’ existing customer base to lift sales of its own product range.

Korenix is still very active in product development. It is focusing on regenerating its product range, targeting improved software and hardware performance. This involves a number of product launches progressively.

This has also meant increased product development expenses, which have impacted earnings negatively. Accordingly, the business entity is reporting somewhat lower EBIT in the quarter. However, there is good potential for positive earnings in the fourth quarter, and for Korenix to approach break-even for the full year 2019.

Third quarterOrder intake was 31 MSEK (28) in the third quarter. Sales were up by 9% to 33.3 MSEK (30.6). EBITDA was 3.0 MSEK (3.0). Earnings were positively impacted by 1.4 MSEK due to IFRS 16, which simultaneously had a negative 1.3 MSEK impact on depreciation and amorti-zation. Depreciation and amortization was 3.7 MSEK (3.2). EBIT was -0.7 MSEK (-0.2), with IFRS 16 exerting a net 0.1 MSEK positive impact on earnings.

Nine monthsOrder intake was 92 MSEK (94). Sales increased somewhat to 93.4 MSEK (92.0). EBITDA was 9.1 MSEK (7.2). Earnings were positively impacted by 4.0 MSEK due to IFRS 16, which simultaneously had a negative 3.7 MSEK impact on depreciation and amortization. Depreciation and amortization was 10.7 MSEK (9.5). EBIT was -1.6 MSEK (-2.3), with IFRS 16 exerting a net 0.3 MSEK positive impact on earnings.

KorenixBusiness entity



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Other financial information

Group investments, including capitalized development expenses and acquisitions, amounted to 124.6 MSEK (70.4) in the first nine months of the year. Cash flow from operating activities was 90.5 MSEK (64.8). Equity was 710.7 MSEK (642.8) on 30 September 2019. The equity ratio was 39.5% (42.9). Cash and cash equivalents were 102.0 MSEK (75.1). Net debt was 616.1 MSEK (435.0), of which bank loans amounted to 455.8 MSEK (378.5). The effects of IFRS 16 increased net debt by 103.7 MSEK. The average number of employees was 743 (709).

Issue of class C sharesIn March 2019, the Board of Directors of Beijer Electronics Group decided to issue 150,066 class C shares with a quotient value of SEK 0.33, in accordance with the authorization of the Annual General Meeting (AGM) 2018. The issue was to a financial institution and was immediately repurchased by the company. The intention of the repurchased class C shares on delivery to employees in 2021 is to convert them to ordinary shares, pursuant to the terms and conditions of the LTI 2018/2021 incentive program. After the completed repurchase of class C shares, the number of class C treasury shares was 184,723. Class C shares are not entitled to dividends.

Acquisition of Neratecbeijer group acquired Swiss company Neratec Solutions AG through the Westermo business entity in early-July 2019. Neratec specializes in wireless network products that focus on reliable and robust communications solutions for train and rail infrastructure. Neratec complements

and enhances Westermo’s offering to these segments. Neratec has annualized sales of some 62 MSEK and about 25 employees. The purchase price amounts to 5 MCHF on a cash/debt-free basis and is payable in cash. A minor contingent consideration will be paid on the satisfaction of specific criteria. The acquisition will have a limited impact on beijer group’s earnings in 2019.

Prospects for the full year 2019The previous view, that beijer group is expected to be able to increase sales and earnings for the full year 2019 compared to the figures for 2018, is reiterated.

Financial targets for the GroupThe Board of Directors set new financial targets for beijer group in the first quarter of 2016. The targets are that within a 2-3 year timeframe, the Group will achieve a minimum organic growth rate of 7% per year, and achieve a minimum EBIT margin of 10%, measured as an average over a business cycle.

Malmö, Sweden, 28 October 2019Per SamuelssonPresident and CEO

For more information, please contact: President and CEO Per Samuelsson, tel +46 (0)40 35 86 10, +46(0)70 858 5440 or EVP and CFO Joakim Laurén, tel +46(0)40 35 84 96, +46(0)70 335 8496


Accounting policiesThis Interim Report for the Group has been prepared in accor-dance with IAS 34 Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. The Interim Report for the parent company has been prepared in accordance with the Swedish Annual Accounts Act’s chapter 9 Interim Financial Reporting.

IFRS 16 Leases came into effect on 1 January 2019. This Standard regulates the accounting of leases and has replaced IAS 17 Leases and the associated IFRIC 4, SIC-15 and SIC-27 inter-pretations. This Standard requires assets and liabilities relating to all lease arrangements, with certain exceptions, being recognized in the Balance Sheet. This approach is based on the view that the lessee has a right of use of the asset for a specific period of time, and simultaneous obligation to pay for that right.

At the date of initial application (DOIA), the Group has over 100 arrangements affected by the new accounting Standard, most being vehicle leases. The Group’s financial reporting is mainly impacted by premises lease contracts. There are also a number of lease arrangements for office equipment.

The Group has adopted the modified retrospective approach on adoption of the new Standard, which means that the full effect of the adoption of the standard is restated in the opening balances

for the financial year 2019 without restating comparative figures. For some premises lease contracts, the Group has decided on an approach involving the assets side being measured on the basis of the actual start date of lease contracts, and the liabilities side being measured with the DOIA as the start date. For other contracts, the DOIA has been used as the start date for measuring assets and liabilities, which are essentially equal at the DOIA.

Direct acquisition costs for rights of use have not been inclu-ded on transition. Rights of use agreements with shorter terms than 12 months, or with acquisition costs of less than 5,000 USD are not included in the reported liabilities or rights of use.

An incremental borrowing rate has been set by region. The periods of rights of use have been determined on the basis of the terms of contracts, and with knowledge of termination and extension clauses, as well as an evaluation of the significance of assets to operations.

Adoption of the new Standard has the following effects on the opening balances in the Balance Sheet. Assets increase by 111 MSEK net and liabilities increase by 115 MSEK net. Equity decreases by 4 MSEK net as a result of the rights of use that are measured retroactively.

IntroductionWe have reviewed the condensed interim financial infor-mation (interim report) of Beijer Electronics Group AB (publ.) as of 30 September 2019 and the nine-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of ReviewWe conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inqui-ries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed

in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

ConclusionBased on our review, nothing has come to our atten¬tion that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, Sweden, 28 October 2019

Öhrlings PricewaterhouseCoopers AB

Sofia Götmar-Blomstedt Authorized Public AccountantLead Audit Partner

Auditor’s report Beijer Electronics Group AB (publ.), org nr 556025-1851

Mikael NilssonAuthorized Public Accountant


Interim Report in Summary

Income Statement—Group

SEK 000 Quarter 3,

2019Quarter 3,

20189 mth.

20199 mth.

2018Full year,

2018

Net sales 391,378 338,448 1,143,423 1,036,052 1,417,240

Other operating revenue 178 -4,462 2,281 853 1,760

Operating expenses excluding depreciation and amortization -328,485 -296,235 -974,434 -927,000 -1,268,408

EBITDA 63,071 37,751 171,270 109,905 150,592

Amortization, intangible assets -17,319 -15,115 -47,539 -42,689 -58,293

Depreciation, property, plant and equipment -15,824 -4,927 -42,240 -13,473 -18,353

EBIT 29,928 17,709 81,491 53,743 73,946

Net financial items -3,814 -2,661 -8,579 -7,092 -10,908

Profit before tax 26,114 15,048 72,912 46,651 63,038

Estimated tax -7,347 -4,042 -20,400 -15,586 -19,501

Net profit 18,767 11,006 52,512 31,065 43,537

Attributable to equity holders of the parent 18,704 10,986 52,434 30,898 43,518

Attributable to minority interest 63 20 78 167 19

Earnings per share, SEK 0.65 0.38 1.83 1.08 1.52

Comprehensive Income

SEK 000 Quarter 3,

2019Quarter 3,

20189 mth.

20199 mth.

2018Full year,

2018

Net profit 18,767 11,006 52,512 31,065 43,537

Actuarial gains and losses -8,142 -3,067 -15,940 -6,134 -13,093

Net investment hedge effects -1,337 -1,337

Translation differences 22,132 -12,046 40,044 33,131 37,614

Comprehensive income 31,420 -4,107 75,279 58,062 68,058

Attributable to equity holders of the parent 31,131 -4,024 74,770 57,688 67,760

Attributable to non-controlling interest 289 -83 509 374 298

Balance Sheet—GroupSEK 000 Sept. 30, 2019 Sept. 30, 2018 Dec. 31, 2018

Assets

Intangible assets 853,156 781,779 789,153

Tangible assets 211,936 92,490 90,832

Financial assets 62,614 59,886 53,838

Current assets 580,312 497,844 486,999

Cash equivalents and short-term investments 101,970 75,130 94,488

Total assets 1,809,988 1,507,129 1,515,310

Liabilities and shareholders’ equity

Shareholders’ equity 710,678 642,823 652,888

Minority share of shareholders’ equity 4,342 3,957 3,847

Long-term liabilities 630,606 494,331 490,504

Current liabilities 464,362 366,018 368,071

Total liabilities and shareholders’ equity 1,809,988 1,507,129 1,515,310

Of which interest-bearing liabilities 718,114 510,056 512,541


Key Figures–GroupSEK 000 Sept. 30, 2019 Sept. 30, 2018 Dec. 31, 2018

EBIT margin, % 7.1 5.2 5.2

Profit margin, % 4.6 3.0 3.1

Equity ratio, % 39.5 42.9 43.3

Equity per share, basic, SEK 24.8 22.5 22.8

Earnings per share, basic, SEK 1.83 1.08 1.52

Return on equity after tax, % 9.5 4.9 7.0

Return on capital employed, % 8.0 5.2 6.7

Return on net operating assets, % 10.6 6.5 8.5

Average number of employees 743 709 713

Statement of Changes in Equity–GroupSEK 000 Sept. 30, 2019 Sept. 30, 2018 Dec. 31, 2018

Attributable to equity holders of the parent

Opening balance, shareholders’ equity, 1 January 652,888 585,015 585,015

Restatement on transition to IFRS 16 -4,303

Rights issue -29 -78 -78

Share repurchase -50 -11 -11

Dividend -14,301

Acquisitions -776 -783

Share-based payment 1,703 985 985

Comprehensive income 74,770 57,688 67,760

Closing balance, shareholders’ equity 710,678 642,823 652,888

Attributable to non-controlling interests

Opening balance, 1 January 3,847 6,221 6,221

Restatement on transition to IFRS 16 -14

Dividend -1,371 -1,412

Acquisitions -1,267 -1,260

Comprehensive income 509 374 298

Closing balance 4,342 3,957 3,847


Cash Flow Statement–GroupSEK 000 Sept. 30, 2019 Sept. 30, 2018 Dec. 31, 2018

Cash flow from operating activities before changes in working capital 149,544 90,861 134,023

Change in working capital -59,014 -26,068 -24,958

Cash flow from operating activities 90,530 64,793 109,065

Cash flow from investing activities -124,552 -70,369 -93,673

Cash flow from finance activities 50,905 -10,177 -14,066

Dividend paid -14,301

Change in cash equivalents 2,582 -15,753 1,326

Cash equivalents and short-term investments, opening balance 94,488 89,281 89,281

Exchange rate change, cash equivalents 4,900 1,602 3,881

Cash equivalents and short-term investments, closing balance 101,970 75,130 94,488

Operating Segments

SEK 000 Quarter 3,

2019Quarter 3,

20189 mth.

20199 mth.

2018Full year,

2018

Net sales

Beijer Electronics 179,984 174,506 562,388 539,885 731,360

Westermo 182,840 138,267 505,915 416,851 584,181

Korenix 33,287 30,616 93,379 91,973 117,754

Group adjustments -4,733 -4,941 -18,259 -12,657 -16,055

Group 391,378 338,448 1,143,423 1,036,052 1,417,240

EBITDA


Westermo 38,687 22,595 98,967 76,422 97,435

Korenix 2,968 3,024 9,103 7,198 6,331

Parent company -4,278 -4,642 -20,772 -21,745 -28,558

Group adjustments 439 296 3,313 -1,935 328

Group 63,071 37,751 171,270 109,905 150,592

EBIT


Westermo 25,957 15,507 67,276 56,046 69,679

Korenix -693 -213 -1,559 -2,256 -6,362

Parent company -6,398 -6,749 -26,910 -28,114 -37,029

Group adjustments -1,212 294 -1,583 -1,966 297

Group 29,928 17,709 81,491 53,743 73,946


Revenue

SEK 000 Quarter 3,

2019Quarter 3,

20189 mth.

20199 mth.

2018Full year,

2018

Geographical market

Sweden 53,239 47,912 167,589 142,288 202,037

Rest of Nordics 33,226 29,212 108,310 98,915 139,680

Germany 28,532 31,091 80,408 79,423 110,174

UK 30,810 21,643 85,370 69,738 94,238

France 27,170 10,885 58,660 35,893 52,767

Turkey 7,226 6,800 20,207 23,912 31,809

Rest of Europe 57,485 51,797 189,627 149,987 204,179

USA 59,903 66,508 193,066 209,706 277,401

Taiwan 14,679 18,116 39,496 58,861 74,143

China 35,804 21,989 93,390 68,353 97,166

Rest of Asia 31,518 18,812 79,000 61,871 90,099

Rest of world 11,786 13,683 28,300 37,105 43,547

Group 391,378 338,448 1,143,423 1,036,052 1,417,240

Category

Operator panels and accessories 159,256 155,628 494,463 474,676 644,937

Network equipment 211,466 165,464 586,658 498,172 689,901

Other products and services 20,656 17,356 62,302 63,204 82,402

Group 391,378 338,448 1,143,423 1,036,052 1,417,240


Balance Sheet–Group

SEK 000 30 Sept. 2019Effect of transition

30 Sept. 2019Comparative values 30 Sept. 2018

Assets

Intangible assets 853,156 781,779

Tangible assets 102,784 109,152 92,490

Financial assets 1,347 61,267 59,886

Current assets -5,392 585,703 497,844

Cash equivalents and short-term investments 101,970 75,130

Total assets 98,739 1,711,248 1,507,129


Shareholders’ equity -4,927 715,605 642,823

Non-controlling interest share of shareholders’ quity -1 4,342 3,957



Total liabilities and shareholders’ equity 98,739 1,711,248 1,507,129


Statement of the effect of transition to IFRS 16 Leases

Income Statement—Group

SEK 000

Q3 2019

Effect of transition

Q3 2019

Compara-tive values

Q3 2018

9 mth, 2019


9 mth, 2019

Compara-tive values

9 mth, 2018

Net sales 391,378 338,448 1,143,423 1,036,052

Other operating revenue 178 -4,461 2,281 853

Operating expenses excluding depreciation and amortization 11,586 -340,071 -296,236 30,500 -1,004,934 -927,000

EBITDA 11,586 51,485 37,751 30,500 140,770 109,905

Amortization. intangible assets -17,319 -15,115 -47,539 -42,689

Depreciation, property, plant and equipment -10,961 -4,863 -4,927 -28,917 -13,323 -13,473

EBIT 625 29,303 17,709 1,583 79,908 53,743

Net financial items -701 -3,113 -2,661 -2,047 -6,532 -7,092

Profit before tax -76 26,190 15,048 -464 73,376 46,651

Estimated tax 14 -7,361 -4,042 113 -20,514 -15,586

Net profit -62 18,829 11,006 -351 52,862 31,065

Attributable to equity holders of the parent -61 18,765 10,986 -363 52,796 30,898

Attributable to non-controlling interest -1 64 20 12 66 167

Earnings per share, SEK 0.00 0.66 0.38 -0.01 1.85 1.08

The following table reviews the effect of the transition to IFRS 16 Leases, and presents values excluding the effects of transition.


Key Figures–Group



EBIT margin, % 0.1 7.0 5.2

Profit margin, % 0.0 4.6 3.0

Equity ratio, % -2.6 42.1 42.9

Equity per share, SEK (comparative figure restated for rights issues) -0.2 25.0 22.5

Earnings per share, SEK (comparative figure restated for rights issues) -0.01 1.85 1.08

Return on equity after tax, % 0.0 9.6 4.9

Return on capital employed, % -0.3 8.3 5.2

Return on net operating assets, % 0.2 10.4 6.5

Cash Flow Statement–Group



Cash flow from operating activities before changes in working capital 28,453 121,091 90,861

Change in working capital -59,014 -26,068

Cash flow from operating activities 28,453 62,077 64,793

Cash flow from investing activities -124,552 -70,369

Cash flow from finance activities -28,453 79,358 -10,177

Dividend paid -14,301

Cash flow for the period 0 2,582 -15,753

Operating segments

SEK 000

Q3 2019


Q3 2019

Compara-tive values

Q3 2019

9 mth, 2019


9 mth, 2019

Compara-tive values

9 mth, 2018

EBITDA

Beijer Electronics 5,289 19,966 16,478 13,199 67,460 49,965

Westermo 3,110 35,578 22,595 7,831 91,136 76,422

Korenix 1,372 1,597 3,024 4,023 5,081 7,198

Parent company 0 -4,278 -4,642 -20,772 -21,745

Group adjustments 1,815 -1,378 296 5,447 -2,135 -1,935

Group 11,586 51,485 37,751 30,500 140,770 109,905

EBIT

Beijer Electronics 630 11,643 8,870 1,388 42,879 30,033

Westermo -262 26,219 15,507 -684 67,960 56,046

Korenix 91 -783 -213 328 -1,886 -2,256

Parent company 0 -6,398 -6,749 -26,910 -28,114

Group adjustments 166 -1,378 294 551 -2,135 -1,966

Group 625 29,303 17,709 1,583 79,908 53,743

Statement of the effect of transition to IFRS 16 Leases, cont.


Income Statement—Parent Company

SEK 000Quarter 3

2019Quarter 3

20189 mth.

20199 mth.

2018Full year,

2018

Net turnover 8,480 8,366 25,448 25,024 33,464

Operating expenses -14,878 -15,115 -52,358 -53,138 -71,843

EBIT -6,398 -6,749 -26,910 -28,114 -38,379

Net financial items* 4,586 -2,278 6,565 7,241 7,808

Profit before tax -1,812 -9,027 -20,345 -20,873 -30,571

Appropriations 23,000

Estimated tax 67 1,642 3,368 3,290 -113

Net profit -1,745 -7,385 -16,977 -17,583 -7,684

*of which dividend from subsidiaries 0 0 0 1,417 1,417

Balance Sheet—Parent CompanySEK 000 Sept. 30, 2019 Sept. 30, 2018 Dec. 31, 2018

Assets

Fixed assets 796,174 739,309 749,683

Current assets 13,989 12,819 36,555

Cash equivalents and short-term investments 1,166 1,166 1,166

Total assets 811,329 753,294 787,404


Shareholders’ equity 260,144 279,899 289,798



Total liabilities and shareholders’ equity 811,329 753,294 787,404


Parent Company Statement of Changes in Equity

SEK 000 Share capital a

Other restricted

equity

Share pre-mium reserve and retained

earnings Net profit Total equity

Opening equity, 1 Jan. 2019 9,545 8,816 271,437 289,798

Net profit -16,977 -16,977

Total changes to net worth, exc. transactions with company’s shareholders 9,545 8,816 271,437 -16,977 272,821

Rights issuea 50 -79 -29

Repurchase of treasury shares -50 -50

Dividend -14,301 -14,301

Share-based payment 1,703 1,703

Closing equity, 30 Sept. 2019 9,595 8,816 258,710 -16,977 260,144

a) No. of shares, 1 Jan. 2019 28,636,036Shares issued in current rights issue 150,066No. of shares, 30 Jun. 2019 28,786,102

Quotient value (SEK) 0.33

The issue price was 0.33 SEK per share.There are 28,601,379 ordinary shares and 184,723 class C shares.


Average

Average values are computed as the median value of the current reporting period and the corresponding item in comparative periods 12 months previously.

Capital employed

Equity plus interest-bearing liabilities.

Development expenditure

Expenditure on product development work, such as personnel expenditure and external consulting expenditure, including expenditure capitalized as intangible assets.

Earnings per share

Net profit attributable to parent company shareholders divided by the number of shares at year-end.

EBIT margin

EBIT in relation to net sales.

Equity ratio

Equity in relation to total assets.

Equity per share

Equity attributable to parent company shareholders divided by the number of shares.

Net debt

Interest-bearing liabilities less cash and cash equivalents and investments in securities, etc.

Operating assets

Total assets less cash and cash equivalents, and interest-bearing liabilities.

Profit margin

Net profit in relation to net sales.

Return on capital employed

Profit before tax plus financial expenses rolling 12 months in relation to average capital employed.

Return on equity after tax

Net profit rolling 12 months in relation to average equity.

Return on net operating assets

EBITDA in relation to average net operating assets.

Financial definitions

Beijer Electronics Group AB (publ)Beijer Electronics Group AB (publ) is a growing powerhouse of innovators within mission-critical industrial digital techno-logy and IIoT. With a strong focus on the connection between people, technology and data, we share a pride in having some of the world’s leading global companies as our core customers. Since its start-up in 1981, beijer group has evolved into a multinational group of complementary business entities with sales over 1.4 billion SEK in 2018.

The company is listed on the NASDAQ OMX Nordic Stockholm Small Cap list under the ticker BELE.

More InformationYou can subscribe for financial information on beijer group via e-mail. Subscribe easily at our website, www.beijergroup.com. If you have any questions about the Group, please call +46 (0)40 35 86 00, or send an email: [email protected]

Financial Calendar30 January 2020 ........................................Year-end Report21 April 2020 ........................ Three-month Interim Report7 May 2020 ..................................Annual General Meeting14 July 2020.............................. Six-month Interim Report27 October 2020 .................... Nine-month Interim Report

Get insights from the cloud with acirro+Beijer Electronics is launching the acirro+ IIoT platform, enabling customers to move their data to the cloud and gain insights to streamline operations, right now. The cloud solution targets Makers of Things, OEMs or providers of other technical equipment – all businesses that run on data. Data that can tell when machines are running smoothly, or when maintenance or other action is necessary. Key performance indicators from machinery can be viewed and analyzed in runtime dashboards, giving complete overview.

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Head officeBeijer Electronics Group AB (publ)Box 426, Stora Varvsgatan 13a 201 24 Malmö, SwedenCorp. ID no. 556025-1851

www.beijergroup.com | +46 (0)40 35 86 00

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