Liljedahl Group Group Annual Report

Transcription

1 Liljedahl Group Group Annual Report 2010

2 Contents in brief 2 The Liljedahl Group 4 Comments by the Group CEO 6 Vision, mission, values and strategy 10 Industry 12 Liljedahl Bare Wire 14 Liljedahl Winding Wire 16 Liljedahl Steel Wire 18 Commercial 20 Liljedahl Machine Tools 22 Liljedahl Trucks 24 Liljedahl Cars 25 Real Estate 25 Liljedahl Real Estate 26 Sustainable Enterprise 30 Five-year Summary 31 Board of Directors Report 33 Income Statements 34 Balance Sheets 36 Cash flow Statements 37 Comments 38 Notes 45 Audit Report 46 Board of Directors 47 Senior Management 48 Addresses Liljedahl Group Group Annual Report 2010

3 2010 in brief General economic recovery, mostly in the industrial divisions Profit nearly trebled compared with 2009 Continued investments for increased capacity, higher product quality and better service Sales increased from SEK 7.5 billion to SEK 11 billion Key Figures Net sales, SEK 000s 11,018,825 7,475,602 10,009,782 6,670,156 2,166,721 EBITDA, SEK 000s 290, , , , ,648 Operating margin, % 1) Profit after financial items, SEK 000s 166,058 59, , , ,512 Return on shareholders equity, % Return on capital employed, % Equity/assets ratio, % Average no. of employees 1,199 1,233 1,313 1, ) Based on value added for Bare Wire and Winding Wire, instead of net sales. Liljedahl Group Group Annual Report

4 The Liljedahl Group an international industrial and commercial group The Liljedahl Group is an international industrial and commercial group with operations in the Nordic region, Europe and China. All companies in the Liljedahl Group have leading positions in their respective markets and represent strong brands. Liljedahl is a family-owned corporate group that is based on long-term, active ownership. The vision is to become one of the leading family-owned groups in the Nordic region. Industry The Liljedahl Group s industrial divisions manufacture copper wire rod and refine wire rod in copper and aluminium for electrical conductors, as well as insulated winding wire in copper and aluminium for electrical motors, transformers and generators. Low-carbon steel wire is also refined into bright, flat-rolled and galvanised wire. The industrial divisions customers are major industrial manufacturers within the electro technical, the engineering and the automotive industry. The refining volume is around 230,000 tonnes of copper, around 40,000 tonnes of steel and around 5,000 tonnes of aluminium annually. The Nordic region s largest, and one of Europe s leading, manufacturers of copper wire rod, drawn wire and profiles in copper and aluminium. Growth areas: Contact wire and other products for power supply for trains. Profiles for conductors in land and submarine cables. Leading manufacturer in Europe of copper and aluminium winding wire for electrical motors, generators and transformers. Growth areas: Winding wire for generators in wind power turbines, and motors for electrical hybrid vehicles and solar cell systems. The market leader in the Nordic region in bright and flat-rolled wire, and among the top five companies in Europe in armouring wire for land and submarine cables and fine wire. Growth areas: Armouring wire for land and submarine cables. Fine wire products for the construction market. 2 Liljedahl Group Group Annual Report 2010

5 Average number of employees Bare Wire, 216 Winding Wire, 356 Steel Wire, 114 Machine Tools, 178 Trucks, 276 Cars, 52 Net sales SEK 11,019 M (7,476) EBITDA* SEK 290 M (187) Average no. of employees 1,199 (1,233) * Earnings before interest, tax, depreciation and goodwill amortisation. Commercial Real Estate The Liljedahl Group s commercial divisions base their operations on the suppliers leading products. A developed service organisation completes the customer offering. Products and solutions contribute to enhancing the efficiency of industrial manufacturing processes and transports for the customers. The commercial divisions customers comprise a broad spectrum of Nordic engineering, transportation and logistics companies. The Cars division has both corporate and private customers. Liljedahl Real Estate is a Groupwide, strategic resource that owns, manages and develops the Group s properties. Leading partner to the Nordic engineering industry as a supplier of advanced machine tools, tools, measurement equipment, industrial supplies, service and preventive maintenance. Growth areas: Production technology advisor and preventive maintenance. Sweden s largest private dealer of Volvo trucks and buses with authorised workshops for service and maintenance. Growth areas: Full-service solutions for truck fleets. Dealer of Volvo and Subaru cars and Renault cars and light transport vehicles with authorised workshops for service and maintenance. Growth areas: Turnkey solutions for corporate customers. Responsible for the Group s strategic supply of premises. The property portfolio consists of 16 properties in three countries. Development area: Energy efficiency enhancement of the Group s property portfolio. Liljedahl Group Group Annual Report

6 Comments by the Group CEO Long-term partnerships are the driving force behind development in the Liljedahl Group Partnerships with customers and suppliers are one part of the Liljedahl Group s growth strategy. Why are partnerships important? Long-term and close interaction is becoming more and more important. These partnerships mean that Liljedahl Group can grow together with its customers and suppliers on both existing and new markets. Our major customers within the industrial divisions are moving towards having fewer global partners, which will satisfy strict requirements on quality and precision of delivery on all markets where the customers operate. Through these requirements, we are driven towards continuously developing our products and processes, and increasing our presence on local markets. Long-term partners with strong brands are also a driving factor in the development of our commercial divisions, not just on the after-sales market. When our partners develop their products, they create opportunities for us to develop our business and take a step forward. Why do the customers choose the companies within the Liljedahl Group? We have gained a good position in Sweden, Germany, Poland and Slovakia. Our customers know us and they know our quality. With the merit we have created in our home market, we have the opportunity to grow within our existing areas of operation. We have dealt with the financial crisis, in contrast to a number of our competitors, and have been able to continue to deliver high quality products. The industrial companies in the Group have strengthened their positions in the wider world. Which markets are showing potential? Development in the field of winding wire has been particularly gratifying. We have increased our volumes and profitability in Central and Eastern Europe, due to the general economic recovery. With investments in our Chinese unit, we have created a good platform, which we will try to develop further over the coming year. Germany has recovered very strongly. Our German unit works closely with the industry, for instance, in the development of contact wire and other products for power supply for trains. How have the commercial divisions been affected by the recovery of the Nordic market? We have had a more normal year when it comes to demand for trucks, which is reflected in the financial results. We are continuing to invest in our truck workshops. At the beginning of the year, our full-service facility in Nässjö, Sweden was officially opened, and we are building a facility this year in Vimmerby. Our machine tools business was particularly weak in 2010, but the influx of orders from the Swedish engineering industries increased slowly during the second half of the year and, during 2011, the Nordic manufacturing industry is expected to recover. One competitive advantage is that, by acquiring Prima Scandinavia, we broadened our product offer with advanced 2-D and 3-D laser machines for sheet-metal forming. Expertise is the most important factor for success for the Liljedahl Group. What are the focus areas this year? I am proud of the Liljedahl Academy, a leadership development program for the Group s managers in collaboration with the International business School in Jönköping. A common training program is a positive way of holding a broad operation such as the Liljedahl Group together, at the same time as strengthening our managers. We are focusing on new expertise at all levels in the Group. Liljedahl Group s board of directors has been joined by new members, Anders Paulsson, President and CEO for the DIAB Group and solicitor Sven A. Olsson, who is experienced as a board member and adviser to many family-owned companies. Which factors will give us success in 2011? Continued focus on expertise at all levels! We are working deliberately to increase the technological content of our range. Here, we need more employees who can find solutions within the interface between the customers wishes and what is technologically possible. We must also continuously develop our quality and productivity! The industrial divisions have introduced models for lean production, with the object of increasing efficiency. We are investing in increased process monitoring and machine efficiency, which should produce benefits over the long term. In our commercial divisions, there is on-going continuous development for the purpose of produ cing a better and more efficient service to our customers. All these focus areas will produce results in What are the challenges facing the Liljedahl Group? The Liljedahl Group must have a larger profit margin in the future, in order to grow and become one of the leading family-owned companies in the Nordic region. I can see signs that our profitability can increase in 2011, but I can also see threats, above all in the currency market, which can diminish our competitive position in relation to Europe. 4 Liljedahl Group Group Annual Report 2010

7 The divisions and companies in the Liljedahl Group are components in a strong overall entity. The new name makes that clear. For profitable growth, we must focus on margins and on market share. We must use our capital in a more rational way, in order to reduce our reliance on capital. Together with our customers, we must look after our ability to enhance the efficiency of all parts of our shared processes. What growth areas look promising? With our products, we are close to many areas of growth. As energy efficient electrical and hybrid vehicles are developed, the copper content in the engines of those vehicles is increasing. The European electricity network needs to be expanded and modernised in order to reduce energy loss. This is increasing demand for high-voltage cables and transformers, which benefits all of our industrial divisions. Also, in the expansion of renewable wind and solar energy, our products put us in the right place. The Group has a strong position in the electro technical field in Europe, a position which, in the long term, can open more markets to Liljedahl Bare Wire and Liljedahl Winding Wire. Liljedahl Steel Wire can build a good platform in Europe, with the Nordic region as its base. Liljedahl Machine Tools is in a good position to grow, through its increased presence on all Nordic markets, and a broader customer offer within current product areas. Liljedahl Trucks will continue to develop and increase its presence as a long-term partner with Volvo. Liljedahl Cars has a stronger product offer now, and can benefit from the new ownership structure of Volvo Cars, which creates conditions for product development and growth. Bengt Liljedahl President and Group CEO, Liljedahl Group Liljedahl Group Group Annual Report

8 Vision, mission, values and strategy Platform for growth A family-owned corporate group The Liljedahl Group is an international, family-owned corporate group founded in The Group relies on a set of values characterised by a Long-term Approach, Business Development and Interaction. The Group has grown organically and through acquisitions, and currently comprises seven divisions with 15 operating companies. The Group is owned by Bengt Liljedahl, Fredrik Liljedahl and Anna Liljedahl. Vision Mission Values The Liljedahl Group is one of the leading family-owned groups in the Nordic region. The companies in the Group hold market leading positions. The Liljedahl Group seeks to generate value for its customers and the societies it serves. Cooperation with the customers takes the form of partnership, which inspires and challenges our employees to continuously develop our products and processes. Our way of working together with customers, suppliers and the surroundings is characterised by a long-term approach, respect and responsibility. We take responsibility for the environment by working continuously in order to reduce the Group s direct impact on the environment. A Long-term Approach, Business Development and Interaction are the key words which describe how the Group views enterprise, business development and the relationship to customers, suppliers, employees, and the surroundings. 6 Liljedahl Group Group Annual Report 2010

9 Areas of strength The Liljedahl Group has identified a number of factors for success which have given all companies in the Group advanced positions in their respective markets: well-known brands, continuous technological and expertise development, leading customers and committed employees. The Group is reinvesting at least 90 percent of its profits, which is creating the conditions for a long-term investment strategy. Cooperation between the parent company and its divisions is also a strength. The parent company is an active and committed owner, which pursues the Group s strategic business development in dialogue with the div isions team managers. The parent company coordinates the Group s strategy and business development, and creates conditions for operational harmony. Belonging to a broad Group with a strong capital base is an advantage in business relationships between the companies and their customers, particularly on the international market. A Long-term Approach Value-driven business A high degree of reinvestment Working for a sustainable society for generations to come Profitability Business Development Continuous development of products, processes and services Product development in close collaboration with customers and suppliers Moving forward in the value chain Interaction Proximity to the customer and suppliers partnership Know-How as a shared resource Synergies between the companies in terms of business processes Social commitment Liljedahl Group Group Annual Report

10 Vision, mission, values and strategy Strategy Long-term strategy The overall strategy for the Liljedahl Group is growth while observing the financial objectives and with a focus on market share. Yield from share-owner capital after tax will reach an average of 10 percent over the economic cycle, plus the interest on the company s borrowing. The Group s equity/assets ratio will exceed 30 percent. The degree of indebtedness will not exceed 150 percent. Market strategy The Liljedahl Group will strengthen its market positions through a greater number of partnerships with customers and suppliers, stronger service market organisations and new and developed products. The Group works with a group-wide, rolling three-year strategy, and business plans that are supplemented with annual targets and operational plans for the divisions and their areas of operation. Financial strategy The Liljedahl Group will ensure its long-term independence through continued high financial solidity. A high level of reinvestment and active product and market development guarantees the Group s continued strategic development. Main priorities in 2010 The Liljedahl Group s main priorities: Focus on market share and development of market position An internal development program for the Group s managers together with the International Business School in Jönköping Liljedahl Academy Development of a coherent internal control program established by the Board of Directors Risk Management The Liljedahl Group s operations are exposed to a number of financial risks. A controlled risk management system is a precondition for maintaining long-term healthy profitability. The Group s financial policy is a guiding document which sets out frameworks for the central management of borrowing, liquidity and interest rates, and which produces the framework for the divisions exposure in terms of currencies, metal trading and customer financing. One of the risks the Group faces is price fluctuations in raw materials, mainly copper within the Bare Wire and Winding Wire divisions. Trade and price hedging take place daily on the London Metal Exchange (LME). To minimise the effect of exchange rate fluctuation, purchase currencies are matched with selling currencies to the extent possible. For the proportion of the Group s sale that are transacted in currencies other than the local currency, or the purchase currency, the Group uses currency clauses and currency forward contracts to minimise these effects. Credit risks are actively assessed within all Group companies. Provisions for nonperforming receivables and bad debt losses are implemented according to common accounting principles. Within the commercial divisions there are inventories of new, used and demonstration machines, trucks and cars, whose value can be exposed to a declining market price. Within each division, there are guidelines and policies for the maximum outstanding value in the above named inventories. The Group s policy is to hedge all exposure to the extent possible. Investments The Group s investment level will increase, mainly in the industrial divisions in production and product development, as well as market resources. Strong recovery During 2010, the general economic position has recovered strongly after the heavy downturn of 2008/2009. Above all, the industrial divisions have seen a healthy upturn in the number of orders, most of all at Liljedahl Winding Wire. The divisions within the Group have successfully defended and developed their market positions during the year. Investments in the Liljedahl Group (SEK 000s) Intangible assets 2,348 Machines, buildings, etc. 58,170 91,262 98, ,071 Corporate acquisitions 21,089 73, ,282 Total 60, , , ,353 8 Liljedahl Group Group Annual Report 2010

11 Strategic focus areas Profitable growth The Liljedahl Group s strategy is growth while observing the financial objectives and with a focus on market share. Growth will primarily take place organically, but may also be generated through supplemental acquisitions within current divisions business areas. Profitable growth Advanced market positions while retaining profitability Liljedahl Winding Wire has gained market share in Europe, along with a major increase in volume. Other industrial divisions have defended their positions. Among the commercial divisions, Liljedahl Machine Tools has increased its market share within cutting technology, sheet-metal technology and tools, and Liljedahl Trucks has strengthened its position within its market area. New geographical markets in Central Europe and China Liljedahl Winding Wire and Liljedahl Steel Wire are growing in Central Europe. Liljedahl Bare Wire and Liljedahl Winding Wire are growing in China. Stronger Group brand The new name, Liljedahl Group, a new graphical profile and shared values, are creating a stronger group-wide identity, which means that the Group is more attractive as a business partner and employer. Sustainable enterprise A long-term approach creates new business by stimulating development of new and indemand solutions, for example, within the fields of energy and logistics. 2 Product and service development The industrial divisions are active in mature industries. The development of current and new product segments is important for growth and increased profitability. Considerable growth potential also exists in supplemental business concerning services in the commercial divisions. New product segments High-speed trains The European network for high-speed trains is expected to grow to 20,000 km by This constitutes a doubling of the length of the high-speed train network in 10 years. Liljedahl Bare Wire delivers components for different applications for the provision of power to high-speed rail lines and locomotives. Solar energy Demand for solar energy is increasing at the same pace as production costs are decreasing. Liljedahl Winding Wire has gained several new customers who manufacture solar cell systems for the global market. Power production Liljedahl Winding Wire offers a broader product program of lapped flat wire, with new degrees of hardness and insulation material, for generators and transformers. Printing industries Liljedahl Steel Wire offers staple wire for print shops. Component manufacturing Liljedahl Machine Tools has increased its product program with 2-D and 3-D laser machines in Sweden and Norway. The machines are used, for instance, for manufacturing advanced components for the automotive industry and other sectors. Facility operations Liljedahl Trucks offers a better product for facility constructors, Volvo s new facility truck, FMX. 3 Process efficiency Increased competition and the market s constant demand for lower costs, requires continuous improvement of the companies value-adding processes, both within the industrial, and commercial divisions. Quality-controlled processes Quality-controlled production processes The production processes in the Group s industrial divisions are quality-assured through continuous development of technology and methods for quality control. Customer-governed processes Production within the industrial divisions is integrated to an ever greater degree with the customers production processes. Changes in the customers needs have a direct effect on the work of the divisions, in enhancing the efficiency of their own processes. From product delivery to turnkey solutions. The commercial divisions offer turnkey solutions connected to the products, such as expert support in automation, preventive service, responsibility for entire fleets and consulting that improves the customers fuel economy. Strategic supply of expertise Knowledge of the customers needs and having the right expertise in all functions are required in order to develop processes, products and service which create greater customer usability. Liljedahl Group Group Annual Report

12 Industry The Liljedahl Group s industrial divisions Liljedahl Bare Wire and Liljedahl Winding Wire refine copper and aluminium for the electro technical industry. Liljedahl Steel Wire refines low-carbon steel wire for the manufacturing industry. The industrial divisions customers are major industrial manufacturers in the energy sector, in the field of infrastructure, within the electrotechnical industry, automotive industry and other engineering industries. The industrial divisions products contribute to the effective transfer and use of electrical energy. The input goods are copper, aluminium and steel. The refining volume is around 230,000 tonnes of copper, around 40,000 tonnes of steel and around 5,000 tonnes of aluminium annually. Leading brands The companies within the industrial divisions hold leading positions in the Nordic region and the European market. The companies are known for their leading production technology, high product quality and stimulating partnerships. Elektrokoppar, Isodraht, Dahréntråd, LWW Slaska and Hörle Wire are well respected brands with long histories. The refinement of copper and aluminium is organised within the Liljedahl Bare Wire and Liljedahl Winding Wire divisions. Liljedahl Bare Wire s rolling mill, Elektrokoppar, in Helsingborg, is the largest in the Nordic region and manufactures copper wire rod. Copper and aluminium wire rod are refined into electrical conductors. Part of the copper wire rod is also refined at Liljedahl Winding Wire, which manufactures insulated winding wire in copper and aluminium. Liljedahl Steel Wire, with Hörle Wire s facilities in Sweden and Slovakia, manufactures wire and wire products in steel for vehicles, construction, shop and kitchen fittings, furniture and reinforcements for power cables. fore, they are working together on various development issues, sharing knowledge and seeking active synergies which enhances the efficiency of these processes and add value for the customers. One strength is that the companies are able to work together on monitoring and analysing the market, for example, on the comprehensive land and submarine cable projects or in the development of wind power. Strategic focus The divisions work in mature industries and focus on developing more refined products. All companies conduct product development, often in collaboration with customers. A niche approach and customisation of the products are important preconditions for gaining greater market share. The divisions also focus on offering turnkey solutions which add value over and above the product itself, for example, taking responsibility for the customer s logistics and inventory management. This collaboration enables both parties to move forward in the value chain. New markets Growth for the industrial divisions is expected to occur mainly in the European market. Future markets of interest are Central and Eastern Europe, as well as China. Driving forces Greater awareness about climate change is creating strong driving forces which are an advantage for the industrial divisions in the Liljedahl Group. Solutions for more efficient production of wind power and solar energy are in demand, as are solutions for electric motors for hybrid and electric vehicles. Demand is also rising for technology for the transfer of power with lower losses due to distribution, and greater output, for example land and submarine cables which connect Europe s power grids together, and applications which are part of the upgrade of the European rail network. Areas of strength The industrial divisions plants are located in Sweden, Germany, Poland, Slovakia and China. Geographical presence and knowledge of the customers manufacturing processes are important advantages. The three divisions have similar roles within the value chain and similar processes for production, sales, delivery and logistics. There- 10 Liljedahl Group Group Annual Report 2010

13 The strategic role for Liljedahl Bare Wire is to provide electro technical, metallurgical and mechanical industries with conductors in copper and aluminium. The strategic role for Liljedahl Winding Wire is to provide the electro technical industry with high quality winding wire. Winding wire is used in electrical motors, generators and transformers. The strategic role for Liljedahl Steel Wire is to provide steel wire with the right properties. The products are used in power transmission, in vehicles, shop and kitchen fittings, construction and in furniture. Customers Mine Smelting works Steelworks Liljedahl Bare Wire Liljedahl Winding Wire Liljedahl Steel Wire Manufacturers Subcontractors PARTNERSHIPS Quality assurance The right material quality is important for the refinement and processing of wire rod. The divisions are therefore supplied by the market s leading suppliers of copper and wire rod in aluminium and steel. Manufacturing and product development The industrial divisions process copper, aluminium and steel into conductors and wire with the right properties, and make further refinements in accordance with customer specific requirements. The development of products, material properties and delivery processes occurs in close collaboration with the customers. Understanding processes The industrial divisions strive to add value over and above the actual product or service. This requires a deep understanding of businesses and processes in the entire customer chain, both the immediate customer, and the customer s customer. Key Figures Net sales, SEK M 9,371 5,739 of which metal 8,221 4,727 EBITDA, SEK M Operating margin, % 1, 2) Profit margin, % 1, 3) Investments, SEK M Average no. of employees ) Based on the value added for Bare Wire and Winding Wire, instead of net sales. 2) EBIT/net sales. 3) Profit/net sales for the year. Liljedahl Group Group Annual Report

14 Industry Liljedahl Bare Wire The largest manufacturer of copper wire rod in the Nordic region Liljedahl Bare Wire is the largest manufacturer of copper wire rod in the Nordic region and one of the leading manufacturers in Europe. Its focus is on achieving a major increase in the refinement of wire rod in copper and aluminium for profiles for the European cable manufacturers and the electro technical industry. Areas of application Liljedahl Bare Wire manufactures copper wire rod and refines wire rod in copper and aluminium for electrical conductors. Profiles in copper and aluminium are used in high-voltage cables which are used for the transfer of power, for example, from wind farms at sea. Commutator profiles are copper profiles for small electric motors which are used in starter motors, white goods and hand tools, etc. Contact wires and other railway applications for power supply for trains. Drawn wire in copper and aluminium are used for power, telecommunication and cabling for fixtures and fittings. Market and market share Liljedahl Bare Wire is the largest manufacturer of copper wire in the Nordic region and one of the leading manufacturers in Europe. Customers can be found in places such as the Nordic region, Germany, Poland, the UK, Switzerland and China. Railway applications are promoted on the global market. Wire rod The wire rod market for copper in Europe is around 2.5 million tonnes. Liljedahl Bare Wire s market share is around 5 percent. Demand for wire and profiles for high-voltage cables for wind power projects has grown, as has the need for wire rod for the manufacture of enamelled wire. Demand for cabling for fixtures and fittings is still low, as the construction market in Europe has not yet recovered after the financial crisis. One new area of use of oxygen-free copper wire is in the manufacture of pipe joints for plumbing. The need for copper wire for high-voltage cables will rise, following investments in the infrastructure. Demand for wire rod for low and medium-voltage cabling is expected to rise in Eastern Europe, and fall in the Nordic region, due to continued restructuring within the cable industry. Profiles High-voltage cables Liljedahl Bare Wire is seeing an increased need for submarine cables which transfers electrical energy from wind farms at sea. The driving force is demand for renewable energy. According to the European Wind Energy Association, the amount of electrical power from seabased European wind farms increased by 51 percent between 2009 and Another market which is growing for environmental reasons is current-bearing cabling for oil and gas platforms. Current from land is replacing the provision of current from diesel-driven generators. The submarine cable market is highly project dependent. The div ision has received orders for profiles and wire for delivery to submarine cables projects for 2011 and Wire rod Profiles Drawn wire PRODUCT AREAS APPLICATIONS Electrical cabling High-voltage cables Commutators Contact wire for railways Cables for power, and for fixtures and fittings 12 Liljedahl Group Group Annual Report 2010

15 Facts Production units Elektrokoppar (Sweden), Isodraht (Germany) and Isodraht Profiles (China) Product areas Wire rod, Profiles and Drawn wire Division Manager Leif Olsson Key Figures Volume, tonnes 157, ,900 Net sales, SEK M 8,256 5,113 of which internal sales to other divisions, SEK M 2,150 1,478 Average no. of employees Net Sales 10,000 SEK M 7,500 5,000 2, Commutators Liljedahl Bare Wire s market share within the commutator profile product area is 70 percent in Europe and around 5 percent in China. Demand for the division s commutator profiles increased during the year by nearly 30 percent compared with 2009, as a consequence of a major increase in demand in Europe for cars and white goods. Contact wire for railways Liljedahl Bare Wire is one of the leading suppliers in Europe of products for the provision of power supply for trains: contact wire, messenger wire and droppers manufactured from copper and copper alloys using custom developed processes. The customers are international technological groups, national railway companies and urban mass transit companies. The division s market share in Europe is now nearly 10 percent, with the aim of reaching at least 30 percent in selected markets within a couple of years. The pace of growth in new high-speed railways in Europe is rapid, with an increase from 10,000 to 20,000 km of track by South Africa, the Middle East, Brazil and the USA are also expected to invest heavily in highspeed rail over the coming years. Drawn wire Most of Liljedahl Bare Wire s customers are in the Nordic region. Drawn wire is mostly sold to wholesalers within the electro technical field, but also to cable manufacturers. The market for drawn wire is highly dependent on demand from cable factories which do not have their own equipment or capacity for working with wire rod. Business Development During the year, Liljedahl Bare Wire has focused more market resources on increasing sales of refined products, mostly profiles, and drawn wire. Profitable growth Liljedahl Bare Wire is after several years of development work, one of the few comprehensive suppliers of components for the provision of power to railway applications, an area with growing volume and profitability. Product development Technological development is being pursued in close cooperation with customers, both in the form of time-limited projects and development contracts lasting several years. The strategy is to move forward in the value chain. Efficiency and quality controlled processes Liljedahl Bare Wire has introduced 5S, a system for lean production which is based on increasing quality in all processes, and enhances their efficiency. This new way of working means, for instance, that operational interruptions are addressed more quickly, ideas for improvement from the operators are taken into account, which increases productivity. Enhancing the efficiency of Europe s electrical network Europe s electrical network is being connected to an ever greater degree using high-voltage cables which form a network between the countries of Europe. Countries with more electricity than they need at a given time can export that electricity to other countries. Demand for energy and resource efficient solutions for land and submarine cables is growing. Liljedahl Bare Wire develops and manufactures copper and aluminium profiles for high-voltage cables with a number of advantages over round-profile wire. Conductors manufactured from profiles have a higher specific conduction capacity and produce a denser, more even conductor with less diameter than a conventionally compacted wire. As the conductors with profiles weigh less per meter, the transport costs are lower. Another advantage is that less energy is used in the manufacture of profiles, compared with wire. Together with one of our customers, we compared two cabling projects, one with profiles, the other with wire, in order to get a full picture of the costs and savings involved in the entire chain of production, says Bengt Jonason, Technical Director at Liljedahl Bare Wire s facility, Elektrokoppar. The value of saving when it comes to raw materials and energy is becoming clearer to us and our customers. Liljedahl Group Group Annual Report

16 Industry Liljedahl Winding Wire Leading supplier of winding wire Liljedahl Winding Wire has strengthened its position in Europe as a leading supplier of winding wire for the transformation, generation and distribution of electrical energy. Areas of application Liljedahl Winding Wire manufactures insulated winding wire in copper and aluminium for the transformation, generation and distribution of electrical energy. Enamelled wire is used in electrical motors, transformers, vehicles and white goods. Enamelled flat wire is found in large locomotive engines and distribution transformers. Lapped flat products are used in generators and transformers, for instance, in wind power turbines and other types of power production. Market and market share The market for insulated winding wire in Europe is around 350,000 tonnes. Liljedahl Winding Wire s market share is around 15 percent. During the year, the division has increased its volume, mostly due to the economic recovery in Europe, and an increased market share. The market in northern Europe is growing in sympathy with the recovery, while the market in southern Europe is weak or diminishing as a result of fragile economic growth in several countries. The wind power market in Asia is growing and China is the market that is of interest to the division. Solar energy, and electrical and hybrid vehicles are emerging growth markets. Enamelled wire Demand for the division s enamelled wire products has increased by nearly 50 percent. Liljedahl Winding Wire has increased its supplies to the European white goods and automotive industry. The market for energy efficient compressors and pumps is also growing. Within solar energy, several manufacturers of solar cell components have become customers. Enamelled flat wire Demand for enamelled flat wire was 15 percent higher than last year, but the market is recovering slowly. Competition in Europe has also increased sharply and there is a degree of overcapacity. Enamelled flat wire is mostly in demand by operations that produce and distribute electrical energy. Lapped flat wire Demand for lapped flat wire diminished somewhat compared with 2009, but is recovering during 2011 as a result of larger supplies to several new and existing customers. The customers are major companies within the energy and infrastructure sectors. The expansion of railways for high-speed trains in large parts of the world means that demand for locomotive engines is increasing. During the last ten years, demand for locomotives has trebled. Enamelled wire Enamelled flat wire Lapped flat products PRODUCT AREAS APPLICATIONS Electrical motors Transformers Generators 14 Liljedahl Group Group Annual Report 2010

17 Facts Production units Dahréntråd (Sweden), Isodraht (Germany) Slaska (Poland) and Isodraht Profiles (China) Product areas Enamelled wire and Enamelled and Lapped flat wire Division Manager Johan Westberg Key Figures Volume, tonnes 70,500 54,600 Net sales, SEK M 2,973 1,817 Of which sales to other divisions, SEK M 13 1 Average no. of employees Net Sales 4,000 SEK M 3,000 2,000 1, Business Development During the year, Liljedahl Winding Wire has increased its capacity by a total of 4,500 tonnes across the three facilities in Sweden, Poland and Germany. More capacity will be installed during This investment is taking place above all at the Polish production unit. During 2010, Liljedahl Winding Wire began production in China. The division produces various types of lapped flat wire for generator manufacturing in China. Profitable growth Liljedahl Winding Wire has advanced its position on the market in Europe by relying on key account managers, who undertake coordinated, active sales work. The result is that the division is now supplying more products to existing customers, and increasing its readiness to establish itself in new geographical markets such as China, together with the customers. This growth is also a result of the fact that the division has been flexible in adapting from copper-based to aluminium-based products. Product development Liljedahl Winding Wire offers a broader and increased product program of lapped flat wire, with new hardness grades and insulation material. The products are used in transformers, generators and locomotive engines. More efficient production processes Liljedahl Winding Wire aims to increase its efficiency of production by 5 percent during In order to achieve that aim, the division has invested in a system of process control, which continually measures all key figures online. Efficiency is defined as a product of several factors, for instance, accessibility, productivity and quality deviations. Quality-controlled processes In the middle of 2011, all of Liljedahl Winding Wire s production facilities will be accredited in accordance with ISO-TS, a quality system which provides for absolute traceability in the processes and therefore 100% quality control. Continuous development of quality-controlled processes is required in order to meet the very sophisticated requirements of the customers. An example of this is the manufacture of enamelled wire for electrical hybrid and fully electric vehicles, where the division is developing a system which controls and prevents all deviations, what is known as the 0 ppm process. Growth in new markets as a strategic supplier to ABB Courtesy of ABB. Liljedahl Winding Wire is one of ABB s strategic suppliers with quality, short turnaround time and precision of supply as key values. The division s mica-lapped flat copper wire is being used to an ever greater degree in wind power generators which are manufactured by ABB in Estonia. ABB values Liljedahl Winding Wire s ability to deliver, its presence on several markets and its desire for continuous process development, says Mikko Vaahtoranta, who is glob ally responsible at ABB for purchasing copper components. The production of Mica flat wire requires very high precision. Liljedahl Winding Wire s Swedish facility has developed the process with camera monitoring and automatic correction of the most critical elements. Liljedahl Winding Wire has also commenced mass production in China of Mica flat wire, which is supplied to ABB s factory in Shanghai, and is installing more production capacity at the division s facility in Poland during We are growing together with ABB on several new markets as a result of the reputation we created on our home market, says Tobias Carlsson, global Key Account Manager for ABB at Liljedahl Winding Wire. Liljedahl Group Group Annual Report

18 Industry Liljedahl Steel Wire A leader in the Nordic region in wire for the manufacturing industry Liljedahl Steel Wire is a market leader in the Nordic region in the bright wire and flat-rolled wire product areas. The division has positioned itself in the fine galvanised wire and armouring wire product areas in Central Europe. Areas of application Liljedahl Steel Wire refines low-carbon steel wire for the manufacturing industry. Bright wire is used, for instance, in storage, shop and kitchen fittings. One new area is bright wire for concrete reinforcement. A thin, current-bearing steel wire functions as an element in the concrete and hardens it from the inside, even when it is too cold to cast. Flat-rolled wire is used for shop and kitchen fittings, and in the manufacturing of furniture. Flat-rolled wire is also found in espagnolette locks and lock housings for windows and doors. Electro galvanised fine wire is bent into staples of varying dimensions and is used in construction, and the manufacturing of furniture and bailing, as well as printing. Galvanised armouring wire protects the copper core in land and submarine cables which is used for the transfer of power and in data communication. Market and market share Liljedahl Steel Wire is a market leader in the Nordic region in the bright wire and flat-rolled wire product areas. The division has positioned itself in the fine galvanised wire and armouring wire product areas in Central Europe. Bright wire Bright wire is sold mostly to the construction industry, furniture manufacturing, automotive industry and to the manufacturing industry. During the year, the division has worked on the Baltic and Central Europe markets. The German market is an entirely new market. Liljedahl Steel Wire has retained its positions in bright and flatrolled wire. Flat-rolled wire The largest market is in Sweden, where the reintroduction of a tax rebate for householders on domestic improvement labour costs has increased demand for components for the construction industry. Companies producing storage solutions have also increased their demand. Liljedahl Steel Wire is working actively on developing user-ready components from flat wire in order to increase value for the customers. The component business is being developed in close collaboration with the customers, and is growing steadily. Fine wire Demand for fine wire is mostly from European staple manufacturers and print shops. Staple wire with extra zinc is a product area which has grown during the year. Zinc increases the staple wire's resistance to corrosion, which is a requirement for the German building market. By means of adopting a niche approach early on in this field, the Steel Wire division is able to meet demand from the construction industries in Bright wire Flat-rolled wire Fine wire Armouring wire PRODUCT AREAS APPLICATIONS Photo: Elfa Photo: Assa Storage fitting Window details Construction Land and submarine cable 16 Liljedahl Group Group Annual Report 2010

19 Facts Production units Hörle Wire in Sweden and Slovakia Product areas Bright wire, Flat-rolled wire, Fine wire and Armouring wire Divisional Manager Ola Karlsson Key Figures Volume, tonnes 34,700 33,800 Net sales, SEK M Average no. of employees Net Sales 400 SEK M Germany and Austria, which use staple wire, for instance, for building shells and prefabricated building elements. Staple manufacturing in Europe has diminished somewhat due to imports from China. Armouring wire Germany is a growing market in the armouring wire product field. During the year, the division has entered into collaboration with several new customers within land and submarine cables for wind farms, where the German cable industry is making major investments. Demand for armouring wire is expected to rise overall over the coming years. Business Development During the year, Liljedahl Steel Wire has established a division-wide marketing organisation, which is working with customers mostly on the Central European market. Selling on the basis of quality, knowledge and experience has been shown to be a successful strategy also in relation to Central European customers who have previously purchased wire of less quality from local manufacturers. Profitable growth Liljedahl Steel Wire has advanced its position in the field of armouring wire, because of high product quality and a logistical customer adapted concept. Product development During the year, the division has developed concrete reinforcement wire with improved mechanical properties that have been documented in manufacturing accreditations, which are important to the customers. The wire is supplied on the customer's own spools, a concept which provides competitive advantages. Development has also taken place in the field of stapling wire for printing, and within other galvanised products. More efficient production processes The division's unit in Slovakia manufactures fine wire and cable armouring wire, while the Swedish unit produces bright and flat-rolled products. The new structure, with two units, each with a different product focus, has provided a more efficient flow of material and production. During the year, the division has invested in an electro-galvanising line at the production facility in Slovakia, and has invested in a new production layout for a more efficient flow at the Swedish facility. Quality-controlled processes During the year, all employees have been trained on 5S, a system for lean production which is based on creating order and clarity, and simplifying all processes, and enhancing their efficiency. Quality wire produces growth in Europe Liljedahl Steel Wire's production facility in Slovakia, Hörle Wire s. r. o., produces galvanised wire close to customers on a growing market in Central Europe. The division has concentrated all of its fine wire manufacturing at the unit in order to create efficient flows of material and production. Galvanised wire is supplied, for instance, to PFS a.s. Brezová pod Bradlom in Slovakia, one of the largest supplier in Europe of springs and leaf springs to the automotive industry. PFS also manufactures wire components for various purposes, for example, for suspension systems for inner roofs, where wire from Hörle Wire is part of the construction. The wire maintains the highest quality at reasonable prices, says Tefan Antol at PDS. The employees at Hörle Wire s. r. o. in Nitra is really professional. They keep their promises and answer our questions without delay. In urgent cases, when our customers place orders which exceed our reserve inventories, Hörle Wire s. r. o. always tries to find solutions which satisfy our needs. The most important markets for PFS roofing systems are Germany and France, but also Sweden, via companies such as Knauff, Riggips, Lafarge and builders' merchants. Demand is increasing for the company's flexible systems, which can be adapted to various and changing needs. Liljedahl Group Group Annual Report

20 Commercial The Liljedahl Group s three commercial divisions, Liljedahl Machine Tools, Liljedahl Trucks and Liljedahl Cars generate value by developing and improving the efficiency of the Nordic engineering industry and transport for its customers. The commercial divisions customers are Nordic engineering, transportation and logistics companies. The Cars division has both private and corporate customers. The commercial divisions base their operations on the suppliers leading products and supplement the customer offering with developed service organisations and solutions adapted to the customer. Leading brands The companies in these divisions hold leading positions in their respective markets. Ravema is the leading supplier in Sweden and Norway of machines for metal cutting from Mazak. Through Din Maskin, and the acquisition of Prima Finn-Power Scandinavia, Liljedahl Machine Tools has become a stronger player in the field of sheet metal forming and laser technology. Finnvedens Lastvagnar is Sweden s largest private dealer of Volvo Trucks. Finnvedens Bil holds a strong position in Värnamo and its surrounding area, where it represents Volvo, Renault and Subaru. New markets There is an ever greater degree of customer demand for the divisions specialist knowledge within automation, technological training, support, service and logistics. The Internet has become a new and growing marketplace for used vehicles, for both Liljedahl Trucks and Liljedahl Cars. service and after-sales services. They can therefore create added value for the customers by sharing knowledge and collaborating on the development of customer services and after-sales services. Customer cooperation is often conducted in the form of longterm partnerships involving committed employees with in-depth knowledge of the customers products and processes. Strategic focus The division s focus is on offering turnkey solutions which add value over and above the product itself. Examples of this are networks of workshops, automation expertise, machine optimisation, training and preventive maintenance. The advantages of partnerships are that the divisions technicians can actively develop the customers business processes, enhance their efficiency, and take an ever greater responsibility for processes which were previously managed by the customers. This collaboration means that both parties can move forward in the value chain. Driving forces Within the engineering industry, the degree of automation and the use of robots are growing, in order to strengthen the global competiveness of Nordic companies. The advanced machine tools manufacture complicated products in a single set up, with the machine operator acting as programmer and controller. The machine supplier s high technical and process expertise is a crucial success factor, as well as rapid and committed service. Within the logistics and transport sector, the end customers demand for local transport companies is growing, which can create flexible and resource-efficient solutions tailored to each individual need. The transport companies, in turn, seek local partners who offer turnkey solutions for delivery, maintenance and service of vehicles. Areas of strength The commercial divisions offer a high level of service on the customer s terms. Examples of this are Ravema s service technicians, with their 24-hour service, and Finnvedens Lastvagnar s service facility in Jönköping, which is staffed around the clock. The three commercial divisions have similar processes for sales, 18 Liljedahl Group Group Annual Report 2010

21 The strategic role for Liljedahl Machine Tools is to act as a comprehensive partner in order to strengthen the Nordic engineering industry s productivity, competitiveness and profitability. The strategic role for Liljedahl Trucks is to enhance the efficiency of customer transports by providing customised solutions and comprehensive services in financing and service. The strategic role for Liljedahl Cars is to facilitate the sale and ownership of cars, and to enhance their efficiency. The company s customers are offered comprehensive services for financing, financial follow-up and service. Suppliers Liljedahl Machine Tools Liljedahl Trucks Liljedahl Cars Customers PARTNERSHIP Quality assurance Through the strategy of working with strong brands, the commercial divisions assure quality through their choice of suppliers of advanced machine tools and industrial supplies, and efficient trucks and cars. Sales and service development The commercial divisions knowledge of production and delivery processes make them competent and active advisers in terms of making the customers processes more efficient. The development of the divisions range of services occurs in close collaboration with the customers. Understanding processes The commercial divisions offer a comprehensive service range, with consulting, financing, training in production and driving tech no logy, preventive maintenance and quick and accessible service. Key Figures Net sales, SEK M 1,645 1,734 EBITDA, SEK M Operating margin, % 1) Profit margin, % 2) Investments, SEK M Average no. of employees ) EBIT/net sales. 2) Profit/net sales for the year. Liljedahl Group Group Annual Report

22 Commercial Liljedahl Machine Tools Leading partners for the Nordic engineering industry Liljedahl Machine Tools is a leading machine supplier for the engineering industry in the Nordic region. Demand is also increasing in the field of consulting and training in efficient production technology solutions. Areas of application Liljedahl Machine Tools represents Mazak, the world s leading manufacturer of advanced machine tools for metal cutting, Prima and Finn- Power, with machines for sheet metal forming and the Hoffmann Group, Europe s leading supplier of quality tools and industrial supplies. Cutting technology Machine tools for metal cutting are used, for example, for manufacturing components for vehicles and wind farms, equipment for the extraction of gas, oil or minerals, as well as medical implants such as hip joints. Sheet metal technology Machine tools for sheet metal forming are used, for example, for manufacturing parts for ventilation systems. Shaped sheet metal is also used in facings, white goods, shop fittings etc. Service Increased automation and good operational safety are becoming all the more important for the customers competitiveness. Liljedahl Machine Tools technicians have specialist expertise on the leading brands Mazak, Prima and Finn-Power. In the case of acute operational inter ruptions, 24-hour service is offered in Sweden and Norway, and telephone support is also offered both day and night. Hoffmann Hoffmann s range includes more than 50,000 cutting tools, clamping tools, measuring tools and industrial supplies. The products can easily be ordered through the eshop on the web. Delivery time is 24 hours. Market and market share Liljedahl Machine Tools is a leading partner for the engineering industry in the Nordic region. During the year, the division has gained market share thanks to strong brands and penetration of new customers, despite the fact that demand for investment products has remained weak. The customers are subcontractors for the automotive industry, companies in the energy sector, mining industries, the construction sector, manufacturers in sheet metal forming with white goods, electronics and ventilation, as well as engineering industries. Cutting technology On the Swedish market, demand increased progressively with the sale of machines during the autumn, and the trend is continuing. Demand in Norway was weak, but a change is expected during 2011, for example, as a result of increased investments, again within oil and gas. The industry s focus on productivity is increasing continuously. One market segment which is growing is comprehensive manufacturing, where a complicated detail is manufactured in a single set up using the same machine, instead of being moved manually between several Cutting technology Sheet metal technology Service Hoffmann PRODUCT AREAS APPLICATIONS Components for the automotive industry Ventilation systems Process optimisation Industrial supplies 20 Liljedahl Group Group Annual Report 2010

23 Facts Companies Ravema (Sweden, Norway and Finland), Din Maskin (Sweden and Norway) Product areas Cutting technology, Sheet metal technology, Service, Tools and Industrial supplies Main suppliers Mazak, Hoffmann Group, Prima and Finn-Power Division Manager Håkan Larsson Key Figures Net sales, SEK M Average no. of employees Net Sales 1,000 SEK M machines. This type of machine increases productivity and reduces turnaround time, both in the manufacture of smaller quantities and in mass production. One new segment involves what are known as entrymachines, i.e. simple and somewhat cheaper machines which are in demand by smaller subcontractors, who do not need all the functions but who still require machines with Mazak s quality and performance. Sheet metal technology After a weak 2010, a positive trend can now be seen. Demand for a better environment and cleaner air has resulted in an increased demand for ventilation systems, and one new segment which is growing is facings in attractive and maintenance-free sheet material. After the acquisition of Prima Scandinavia, the division offers a comprehensive program through Din Maskin, with 2-D and 3-D laser machines for sheet metal forming. Here, the division sees opportunities for gaining market share. Hoffmann Demand for tools, measuring equipment and industrial supplies has turned upward during the latter part of 2010, mostly in Sweden and Finland. The customers are within the engineering industry and other industries. Business Development During the year, Liljedahl Machine Tools has prepared the organisation for growth through retaining and training its personnel, as part of a long-term strategy in order to be able to offer the customers specialist expertise when the general economic climate turns. By taking over responsibility for all of Prima s laser programs in Sweden and Norway, along with its sales operation, service and spare-parts management, the division has strengthened collaboration with the supplier Prima Finn-Power. Liljedahl Machine Tools has continued to focus on the market, for example, by new customer development and other customer activities. Customer satisfaction is showing a continued positive trend in the regular surveys carried out by the division. Profitable growth Liljedahl Machine Tools has been able to advance its market position, due to the fact that the division offers one of the market s best product programs, combined with technologically skilled personnel and a comprehensive organisation. More efficient processes The Machine Tools division s Norwegian company Din Maskin AS, which was acquired in 2008, will gain ISO accreditation for its quality management systems. Other companies in the division are already ISO accredited. Coordination is also continuing between Din Maskin in Sweden and Norway. 3-D laser cutting for better profitability Jobro Plåtkomponenter in Ulricehamn manufactures accredited sheet products, such as prototypes and preliminary runs for the automotive industry. The right production equipment and continuous product development produces competitive advantages. The company has invested in one of the most advanced machine tools, PRIMA RAPIDO EVO II, a 3-D laser machine which can cut almost any product up to four meters. The machine makes it possible to reduce the proportion of components in a construction process, and simplifies the manufacture of formation tools, as the component can be cut cleanly in accordance with a fully formulated pattern. We believe we can increase our production capacity with the help of the 3-D laser, says Tobias Ludvigsson, joint owner of Jobro Plåtkomponenter. The 3-D laser has been supplied by the Liljedahl Machine Tools company, Din Maskin in Värnamo, where Alexander Ström is the Managing Director: A large part of our potential is to be found is in the automotive industry. There are processes there which require 3-D laser technology. One example is the manufacture of components in high-tempered steel, which make the cars safer and, at the same time, lighter, which reduces the need for engine power and therefore fuel consumption. Liljedahl Group Group Annual Report

24 Commercial Liljedahl Trucks The largest private dealer of Volvo trucks Liljedahl Trucks offers its customers a partnership that includes everything from finance to comprehensive service for large truck fleets. Liljedahl Trucks, through Finnvedens Lastvagnar, is Sweden s largest private dealer of heavy Volvo trucks and buses. Its operations are established in 18 locations in Småland, Blekinge and Västergötland, with sales, authorised workshops, maintenance and service. There is also a sales unit on the island of Gotland. The Trucks Division enhances the efficiency of its customers logistics process by providing customised solutions for chassis, peripheral equipment and trailers, as well as financing, insurance and comprehensive service agreements. The customers include single-truck haulage contractors, large shipping agents and local bus companies. Market and market share During 2010, a total of 4,550 new trucks over 7 tons were registered in Sweden, a reduction of 12 percent compared with Volvo s market share was 45 percent. Finnvedens Lastvagnar sells almost every other truck in its area. Sales Liljedahl Trucks sales increased slightly during the year, as a result of major interest in Volvo s new construction truck FMX, which was launched in the summer of Liljedahl Trucks operates Sweden s largest used trucks centre. The customers appreciate the division s focus on supplying customerready used trucks in the best possible condition, and the informative website which facilitates purchasing decisions. Service and Parts Volume in the service market has increased and particularly within the sale of spare parts. Financing Demand for finance solutions has decreased during the year as a result of heavy price pressure on the market, and more stringent conditions for finance. Business Development Surveys show that the division s service operations have more and more satisfied customers, as a result of the effort made in training customer service personnel, service technicians and managers. At the beginning of the year, Liljedahl Trucks officially opened its new full-service facility in Nässjö, Sweden, which is easily accessible to customers, next to the Högland Terminal on highway 31. During 2011, the division will officially open a new workshop in Vimmerby. Liljedahl Trucks will focus on offering agents with larger fleets of trucks a turnkey solution, which includes finance, insurance and service agreements, as well as training in eco-driving and access to Dynafleet, Volvo s driving computer, which facilitates efficient driving. Profitable growth During the year, Liljedahl Trucks has enhanced the efficiency of its administration, and, instead, employees have been recruited to more customer-orientated areas of the operation. Product development Liljedahl Trucks has produced a new type of service agreement, directed towards the customer group who previously did not prioritise service on their vehicles. The new agreement, called the Green Agreement, is a value-for-money basic solution which produces better driving economy and better environmental performance. Efficiency and quality controlled processes During the first quarter of 2011, Liljedahl Trucks is introducing Volvo s global business system, GDS, which will quality-assure all processes and enhance their efficiency. The workforce will have more time for the customers, and will be able to provide them with better information on which to base their decision making for the purpose of more efficient logistical processes. PRODUCT AREAS Sales Service and Parts Financing 22 Liljedahl Group Group Annual Report 2010

25 Facts Five regions Skövde, Jönköping, Växjö, Kalmar and Oskarshamn Product areas Sales, Service, Parts, Financing and Truck rental Division Manager Mikael Darius Key Figures Net sales, SEK M Average no. of employees Net Sales 1,200 SEK M Volvo s FMX produces competitive advantages The first model of Volvo s new construction truck, FMX, to be sold in Sweden was supplied by Finnvedens Lastvagnar in Västervik. The sale was founded on a good relationship between the buyer, Claessons Grävmaskiner, and the vendor, Staffan Bergström, who is an experienced traveller and driver. The Claesson brothers FMX is built for intensive use: In winter, for snow-ploughing and salting, in summer, for construction tasks such as crane work, gritting and the transportation of machinery. All-wheel drive, a high idling speed and an automatic transmission mean that the vehicle can be used for all types of task, from forest roads to European-standard roads. We travelled to Volvo in Gothenburg and looked at the truck together with Staffan, says Lasse Claesson, but we d already made up our minds. We ran its predecessor, the FM, for five years, and it was fantastic. The FMX, which fulfils the requirements of Euro 5*, has been developed together with fleets across Europe. Through Finnvedens Lastvagnar, Liljedahl Trucks has adapted it to the customer. The vehicle certainly gives us an advantage over our competitors, says Lasse Claesson at Claessons Grävmaskiner. For example, when managing roads for the winter, we rarely need to put the snow chains on, we just put it into front-wheel drive. * Euro 5 is a piece of EU legislation which is aimed at reducing the emission of nitrogen oxides (NOx) and particle emissions (PM) from trucks with diesel engines. Liljedahl Group Group Annual Report

26 Commercial Liljedahl Cars Dealer of Volvo, Subaru and Renault New model ranges from Volvo and Renault are creating the conditions for growth. Through Finnvedens Bil, Liljedahl Cars is a dealer of Volvo and Subaru cars and Renault cars and light transport vehicles. The offer includes used car sales, spare parts, full service and workshops, as well as fuel and tyre storage. Finnvedens Bil also represents Hertz Car Hire. Liljedahl Cars also offers finance and insurance solutions for private drivers and corporate customers. Market and market share The sale of new cars in Sweden rose swiftly in 2010, and was back to the level of the record year, The number of newly registered cars increased by nearly 36 percent compared with the year before. The share of environmentally-friendly cars was over 40 percent. Liljedahl Cars has gained new market share during 2010 by active marketing work. Of all new car sales in Värnamo and its surroundings, one out of five new cars is sold by Finnvedens Bil. On the used car market, the company has customers all over Sweden, with the sale of used cars over the Internet. Sales Demand has increased, mostly, for smaller cars, which are now being developed by all premium marques. The new Volvo V60, launched as a sporting lifestyle car, has attracted a new customer group to Finnvedens Bil, which has contributed to the increase in sales. Service and Parts In the field of service, Liljedahl Cars has acquitted itself well, despite considerable competition. One of the reasons for this is that the division s workshop technicians have the specialist knowledge required in order to be able to manage complicated systems, and to upgrade the cars computerised functions with new software on every service job. The volume of spare-part sales has followed the positive trend in car sales. Financing Demand has increased for finance solutions for companies with a small number of leased cars, what is known as business leasing a turnkey solution which simplifies billing and cost monitoring. Business Development Liljedahl Cars has upgraded its showroom, where a new customer centre has increased the level of service to customers. Liljedahl Cars has also carried out environmental investments at two filling stations, with new tanks for ethanol and diesel. Facts Market area Värnamo and surrounding areas Product areas Sales, Service, Parts, Financing, Fuel, Tyre Storage and Car hire operations Division Manager Niklas Nilsson Key Figures Net sales, SEK M Average no. of employees Net Sales 400 SEK M PRODUCT AREAS Sales Service and Parts Financing 24 Liljedahl Group Group Annual Report 2010

27 Real Estate Liljedahl Real Estate Group-owned properties strengthen business development Functional properties are a strategic resource in the development of the Liljedahl Group s operations. Surveys show that workshop and car hire customers are more satisfied compared to previous year. The customer satisfaction index has also increased in the field of sales. Profitable growth During the coming year, the division will enhance the efficiency of its internal processes. In order to increase profitability even more, the division has recruited a new business area manager for used cars. Product development The traditional car sales people will be developed into advisers. Liljedahl Cars is developing its customer relations by offering business customers fuel-efficient car fleets and close cooperation in the form of advice and turnkey solutions concerning car selection, car care and finance. Efficiency and quality controlled processes Liljedahl Cars focus on developing customer processes, and enhancing their efficiency, is continuing in In sales, the division has introduced a process-governed way of working, lean sales. The workshops work according to a lean model which supports the workforce in taking all the right steps, solving minor errors directly and working as economically efficient as possible. One example is the development of personal service technicians. The aim is to make it simpler for the customer by means of increasing accessibility, personal interaction and structured processes. Liljedahl Real Estate is responsible for the ownership, administration and development of the group s property portfolio. During the autumn of 2010, a comprehensive upgrade of roofs and façades was carried out at Liljedahl Steel Wire s facility at Nitra in Slovakia. The aim is to reduce energy and maintenance costs. At the beginning of the year, Liljedahl Trucks officially opened a new full-service facility for Finnvedens Lastvagnar in Nässjö, Sweden, next to the Högland Terminal on highway 31. During the year, Liljedahl Cars has upgraded its showroom in Värnamo. Flexible property development The Liljedahl Group owns the majority of the properties which are used by the Group s operations. As the owner, the Liljedahl Group is able to efficiently and flexibly adapt the properties to its needs, both in the short and long term. The divisions can be sure that their strategic plans are matched by functional industrial, sales and office properties. Through Liljedahl Real Estate, the Group owns, manages and develops 16 properties in three countries, with a total floor space of 157,000 square meters. The premises are leased out at market competitive rents. New investments Liljedahl Real Estate is planning investments of SEK 35 million in the Group s properties during Liljedahl Winding Wire is rebuilding the properties at its three production units in Sweden, Germany and Poland, in order to further improve its production efficiency and logistics. Liljedahl Steel Wire is adapting the facility in Sweden for its new product focus on bright and flat rolled products in order to create more efficient material and production flow. During 2011, Liljedahl Trucks is building a new service facility in Vimmerby modelled after the modern facility in Nässjö. Facts Property portfolio 16 properties in Sweden, Germany and Slovakia Carrying amount 2010 SEK 401m (419m) Division Manager Torbjörn Persson Liljedahl Group Group Annual Report

28 Sustainable enterprise Sustainable enterprise creates long-term profitability Long-term and sustainable enterprise is a precondition for profitability and growth in the Liljedahl Group. The Liljedahl Group is a family-owned corporate group. The fundamental values on which the Group relies on are characterised by a long-term approach, business development and interaction. This view characterises the enterprise and our relationships with the customers, the suppliers, employees and the community. Corporate social responsibility issues are of central importance: responsibility for sustainable finance for balanced environment and towards employees and customers in the societies in which the Group companies are active, as well as an ethical approach to business. An attractive business partner Sustainable enterprise is a strategic choice that generates long-term profitability. Focus on sustainability issues makes the Liljedahl Group a reliable partner for suppliers and customers, and a stimulating employer that more easily attracts and retains skilled employees. A long-term and active approach to sustainability is directly beneficial to our business, as it stimulates our development of new and in-demand solutions, for example, within the fields of energy and logistics. Financial sustainability In line with its long-term approach to business, the Liljedahl Group choose to reinvest at least 90 percent of its profits in the business. In 2010, investments totalling SEK 61 M were made. The Group operates a continuous investment program. During 2011, the Liljedahl Group will invest around SEK 100 M. The Group has a strong financial position. The Group s equity/assets ratio will exceed 30 percent. Globalisation with responsibility The Liljedahl Group conducts business in the Nordic region, the rest of Europe and China. Working on a global market requires a combination of strong governance and a local foundation with carefully chosen company managers. A new Group brand During the year, the Group has changed its name to the Liljedahl Group and, at the same time, has updated its graphical profile in order to emphasise the brand and strengthen the Group, its divisions and its companies, both internally and externally. A clear group-wide identity, based on shared values, makes the Group a more interesting business partner and an attractive employer, while our cooperation within and in between the companies is strengthened at the same time. Sustainable products and solutions The Group s companies contribute to sustainable energy consumption through products that enhance the efficiency of industrial and logistics processes, as well as the distribution of electrical energy. Examples from the industrial divisions include wire products for land and submarine cables, wind power turbines, electricity supplies for trains and electrical hybrid cars. The commercial divisions provide machinery for automation within the industry, and service solutions which contribute to more efficient logistics. 26 Liljedahl Group Group Annual Report 2010

29 Having the right competence is key The Liljedahl Academy is a shared training program for the management groups in the Liljedahl Group s divisions and the Group s senior management. The two year program is directed towards developing the Group s leading executives in the development of business activities, and is conducted in collaboration with the Jönköping International Business School. The companies in the Group are associated with high quality and excellent service. The companies constantly develop products and services to generate greater customer value. This requires increasingly deeper knowledge of the customers processes and the right expertise at all levels. Liljedahl Steel Wire has invested in a comprehensive training program within the field of lean production, production planning and sales technology. Liljedahl Trucks is working actively on an internal management training program. In connection with the adoption of Volvo s global business systems, Global Dealer Service, all those in positions of responsibility are undergoing the training program. Liljedahl Cars has recruited new key workers after having carried out a skills audit within the organisation. The workforce has also been trained in lean production and lean sales, which involves a process-tailored working method with continuous improvement. Liljedahl Bare Wire is working long-term on attracting employees with the right background in terms of training and expertise. The division s largest facility, Elektrokoppar in Helsingborg, is supporting the local High School s industrial vocational teaching program. Liljedahl Machine Tools are working with several schools which are training CNC operators, a vocational group that is much in demand. Long-term responsibility for the employees Sustainable business also involves creating a good working environment, which means that the workforce can, and wants to, contribute to profitability and development. The Liljedahl Group wishes to offer work with development possibilities, with good leadership, in a safe working environment. In order to foster commitment, it is important that every employee feels that there are opportunities for them to have an influence. Using annual appraisals, managers and employees discuss issues such as their working situation, working environment, ways of cooperating with others, and their development. A safe working environment and a strong sense of community have the highest priority. The aim is to achieve accident-free workplaces. A safe working environment is created by means of systematic environmental work based on issues such as routines for risk analysis, reporting defects, and safety inspections. The Liljedahl Academy The Liljedahl Group consists of 15 companies across seven countries, which is a challenge, but above all, an opportunity to exchange experience and benchmarking between the different parts of the Group. The meeting place for the Group s leading executives is the Liljedahl Academy, a two-year development program which the Group is conducting together with the Jönköping Inter national Business School. The aim is to develop the business development and strategic process used by the senior management groups, to build a groupwide identity and set of values, and to increase the exchange of experience. It is an unprecedented good move for a business group such as Liljedahl to build networks and conduct research on the potential within the organisation, says Anders Melander, Senior Lecturer in Business Finance and the Head of the Liljedahl Academy. The training program focuses on four areas: strategic planning, marketing, finance, as well as communication and leadership. There is also in-depth study about family-owned companies. The Liljedahl Academy is a close development collaboration between the School and the Liljedahl Group, says Anders Melander. We get a lot of feedback, as the International Business School is conducting research about strategic development. The Liljedahl Group is an interesting case study for us. Liljedahl Group Group Annual Report

30 Sustainable enterprise Long-term investment in Swedish champions The top-flight Swedish ice hockey team HV71 won its fourth gold medal in the Swedish Championship in 2010, with the Liljedahl Group s logo on their match jerseys. Independent assessments show that HV71 is the most exposed sponsorship concession in Sweden, with nearly double the amount TV coverage as the best soccer team in the Swedish Premier League. Among the Liljedahl Group s supported schemes is the team s long-term investment in its youth work, with more than 600 players between the ages of 6 and 18, an important nursery for the first team. The home arena in Jönköping is being expanded right now, with two new ice rinks, which will enable the club to bid to host the World Junior Ice Hockey Championships in The long-term approach and spirit of entrepreneurship is a characteristic of both HV71 and the Liljedahl Group, says Emil Danielsson, Head of Marketing for HV71. We have the same challenge, never to forget who we are and what our origins are, and, at the same time, staying curious and open to new opportunities. Photo: Quyang Xin, Plant Manager for Liljedahl Bare Wire s facility in China and Johan Davidsson, HV71 s team captain. The industrial divisions environmental work The raw materials in the Groups industrial divisions are copper, aluminium and steel, as well as enamel and other materials, which are used as insulation for winding wire. In the Bare Wire and Winding Wire divisions, copper scrap is 100% recycled. The emissions are far below the levels stipulated in European directives. During 2011, Liljedahl Bare Wire will focus on reducing the energy consumption in its manufacturing process, in terms of natural gas, which is used for smelting copper. The division is working on commercial plans and continuous monitoring in order to continuously develop its environmental performance. Liljedahl Winding Wire is working continuously in order to reduce its energy consumption, which is already relatively low, for each kilo of winding wire it produces. The division s Swedish facility, Dahréntråd, is an industry leader in terms of the reduction of waste solvents. Its waste production corresponds to one tenth of the current EU directive s limit. One emerging challenge for Liljedahl Winding Wire is in the form of new limits for waste nitrogen oxides, which are to be established at European level. The division is therefore participating in a Europe-wide cooperative in order to develop a process which does not form nitrogen oxides. Liljedahl Steel Wire is continuing to improve its cleansing facility for its post-process waste water. The aim is to retain the low median value for metals which was measured in previous years. A large proportion of the process water is reused, which has led to a reduction in water consumption. During the year, the division has commenced the implementation of alternative methods for heating its premises, with the object of reducing its reliance on oil and its CO 2 emissions. The decision to concentrate the wire galvanisation operation at the production facility in Slovakia has partly led to the reduction in waste zinc emissions. 28 Liljedahl Group Group Annual Report 2010

31 The commercial divisions environmental work The commercial divisions in the Liljedahl Group can contribute to a better environment, by helping the customers to enhance the efficiency of their industrial processes, and to develop better logistical solutions. Liljedahl Machine Tools continue their launch of energyoptimised machine tools from the suppliers, Mazak, Prima and Finn-Power. Liljedahl Trucks most important contribution to a better environment is selling new trucks that consume less full and produce lower emissions than older vehicles. The division also offers training on fuel-efficient driving. The use of chemicals at Liljedahl Trucks workshops and service facilities has decreased from nearly 1,500 products to around 250. All of these are environmentally controlled and carry safety data labels. Liljedahl Cars has increased its sale of environmentally labelled diesel cars with CO 2 emissions lower than 120 g/km. The share of environmentally classed cars sold out of the total sales of new cars is 15 percent. The division has installed new tanks for ethanol and diesel at two of its fuelling stations. The third fuelling station will be equipped with alternative fuels during The amount of waste will be reduced, partly by improved recycling, and partly by replacing the use of washer fluid in plastic bottles with washer fluid from reusable containers. Working in the community In April 2010, Bengt Liljedahl, founder and owner of Liljedahl Group, was awarded the Swedish Royal Patriotic Society s Trade and Industry Medal, for his successful entrepreneurship. The medal is awarded to people who have used their ownership influence to create and develop companies, to create job opportunities, and to contribute to the development of the Swedish business community. The Liljedahl Group is a partner of Vandalorum, international centre for art and design in Värnamo, Sweden. The Group has made a contribution of SEK 10 M to the first buildings in the project, including three exhibition halls. Vandalorum is a meeting place for the cultural and business community in the region, but also a place of learning, with plans to appoint a professorial position, in what is already an established joint-working arrangement with colleges and univer sities. Vandalorum s mission is to contribute to regional profiling and growth. The Group is a patron of top-level sports, in the HV71 ice-hockey association and the development of talented young tennis players at Värnamo Tennis Club. Several divisions in the Liljedahl Group support cultural life, sporting associations and schools in their respective locations. A successful entrepreneur The Liljedahl Group s founder and owner Bengt Liljedahl received the Swedish Royal Patriotic Society s Trade and Industry Medal in April. The medal was presented by the Swedish Minister for Enterprise and Energy, Maud Olofsson. The citation reads: Bengt Liljedahl has used a long-term and deliberate approach to develop the Liljedahl Group, an international industrial and commercial Group with operations in Europe and China. The Group s industrial divisions manufacture and refine winding wire in copper, and refine winding wire in steel. The Group s commercial divisions sell and service machine tools, Volvo trucks and Volvo and Renault cars. All companies in the Group occupy leading positions in their respective markets and represent strong brands. The Head Office is situated in Värnamo and, after 27 years, the Group has a turnover of around SEK 8 billion, with a workforce of 1,300. Liljedahl Group Group Annual Report

32 Five-year Summary Group SEK 000s Income statement Net sales 11,018,825 7,475,602 10,009,782 6,670,156 2,166,721 EBITDA 290, , , , ,648 EBIT 164,518 65, , , ,750 Profit after financial items 166,058 59, , , ,512 Tax 53,795 17,558 45,899 69,612 33,325 Minority share in profit for the year 292 Net profit for the year 112,263 42,123 85, ,712 85,895 Amortisation of intangible assets charged to earnings 38,423 30,178 25,891 16,623 16,712 Depreciation of tangible assets charged to earnings 87,448 91,983 89,408 81,330 57,186 Balance sheet Intangible fixed assets 175, , , ,416 34,799 Tangible fixed assets 754, , , , ,502 Cash and cash equivalents 1) 17,048 25,775 41, , ,982 Shareholders equity 963, , , , ,398 Long-term liabilities 275, , , ,207 82,410 Total assets 3,219,680 2,994,111 2,872,260 2,920,490 1,086,942 Cash flow from operating activities 88,506 96, , ,362 27,327 Investments 2) Intangible fixed assets 2,348 27,783 Tangible fixed assets 58,170 91,262 98, ,071 49,465 Shares in subsidiaries 21,089 73, ,282 Average no. of employees 1,199 1,233 1,313 1, Key figures Operating margin, % 3, 5) Profit margin, % 4, 5) Return on shareholders' equity, % 6) Return on capital employed, % 7, 8) Equity/assets, % 9) Net asset value/share, SEK 10) ) Including current investments. 2) Exclusive of rental vehicles. 3) EBIT/net sales. 4) Profit/net sales for the year 5) Based on value added for Bare Wire and Winding Wire, instead of net sales. 6) Profit for the year as a percentage of the average shareholders equity. 7) Profit after financial items plus financial expenses as a percentage of average capital employed 8) Capital employed consists of total assets less non-interest-bearing liabilities and provisions. 9) Shareholders equity in relation to total assets 10) Shareholders equity in relation to the number of shares in Liljedahl Group Group Annual Report 2010

33 Board of Directors Report The Board of Directors and the President of Liljedahl Group AB (name change from Liljedahlsbolagen AB) hereby submit their Annual Report and consolidated accounts concerning operations in the 2010 fiscal year. Operations The Liljedahl Group is an international industrial and commercial group, in which Liljedahl Group AB is the parent company. The overall strategy is to grow while observing the financial objectives and with a focus on market shares. Growth will primarily take place organically, but may also be generated through supplemental acquisitions within current divisions business areas. The Group s operations are carried on within Industry, in three divisions, Bare Wire, Winding Wire and Steel Wire and, within Commercial and Service, in three divisions, Machine Tools, Trucks and Cars. The Group s properties are administered by the Real Estate division. Industry Bare Wire The Bare Wire Division has operations in Sweden (AB Elektrokoppar), Germany (Isodraht GmbH) and China (EKS Isodraht Profiles (Taicang) Co. Ltd.). The division manufactures copper wire rod, refines wire rod for electrical conductors, profiles for high-voltage cables, small electrical motors and contact wires for railways, as well as drawn wire for power, telecommunication and cabling for fixtures and fittings. The raw materials used are copper and aluminium. Winding Wire The Winding Wire Division has operations in Sweden (AB Dahréntråd), Germany (Isodraht GmbH), Poland (LWW Slaska Sp.z.o.o.) and China (EKS Isodraht Profiles (Taicang) Co. Ltd.). The division manufactures and develops enamelled wire which is used for electrical motors, transformers, cars and white goods, enamelled flat wire which is found in locomotive engines and distribution transformers, lapped flat wire for generators and transformers, for instance, for wind power and other types of power production. The raw materials used are copper and aluminium. Steel Wire The Steel Wire Division has operations in Sweden (Hörle Wire AB) and Slovakia (Hörle Wire s.r.o.). The Division manufactures and refines a wide range wire of low-carbon steel for the manufacturing industry. The products are used, for instance, in shop and kitchen fittings, in power transmission, vehicles and construction as well as in furniture. Commercial and Service Machine Tools The Machine Tools Division has operations in Sweden (Ravema AB and Din Maskin i Värnamo AB) and Norway (Ravema AS and Din Maskin AS) where the companies offer the Nordic manufacturing industry machinery for metal cutting and sheet metal forming, accessories, quality tools and service with the aim of increasing customers productivity and profitability. Operations are also conducted in Finland (Ravema Oy), where the company provides the Finnish manufacturing industry with quality tools and industrial supplies. The Head Office and Technology Centre for the Division is located in Värnamo. The Norwegian operations have sales offices in Oslo and Stavanger and the Finnish sales office is located in Tampere. Trucks The Trucks Division (Finnvedens Lastvagnar AB) has sales of trucks and buses, financing operations, authorised workshops, service and maintenance and parts sales in 18 locations in Småland, Blekinge and Västergötland, and sales on the island of Gotland. Finnvedens Lastvagnar represents Volvo trucks and Volvo buses. The Trucks Division enhances the efficiency of its customers logistics process by providing customised solutions for chassis, peripheral equipment and trailers, as well as finance, insurance and comprehensive service agreements. Cars The Cars Division represents Volvo, Renault and Subaru through Finnvedens Bil AB. The company sells new and used cars to customers in Värnamo and the surrounding areas. The operation also includes workshops, spare parts, finance and rental car operations etc. The operations are conducted in Värnamo, where the main facility is located, in Gislaved and Smålandsstenar. Real Estate Real Estate The Real Estate Division owns, manages and develops the Liljedahl Group s properties. Tenants are primarily companies in the Group. Key events during the fiscal year In December 2010, the Real Estate Division decided to invest in a service facility in Vimmerby on behalf of the Group s company Finnvedens Lastvagnar. The facility is due to be ready by the end of Key events after the close of the fiscal year No significant events occurred after the close of the fiscal year. Anticipated future development The Group is focusing intensively on developing the companies that currently comprise the Liljedahl Group. Favourable development opportunities exist for all companies. Financial instruments/financial risks The Liljedahl Group s operations are exposed to a number of financial risks. There is an overall financial policy that gives the framework for the divisions exposure in the metal trade, currencies, interest and liquidity as well as customer finance. Raw material risks The trade with raw materials, mainly copper within the Bare Wire and Winding Wire divisions are relatively large. The price of the copper charged to the customer is set on the basis of the market price, which is, in turn based on the current price on the London Metal Exchange (LME). The total fluctuations in the price of copper are carried forward to the customers. For pricing of copper charged to the customers, as well as for valuations of unsold quantities, price hedging is made on the LME. This is handled by Elektrokoppar AB for all companies within the Bare Wire and Winding Wire divisions. Risk limits for each company are determined by the Board of Directors. Profits in the Steel Wire division are affected by changes in the price of steel. There are limited possibilities for steel price hedging. Changes in the market price of steel can therefore have an effect on the net profit in conjunctions with stock revaluations. Liljedahl Group Group Annual Report

34 Currency risks To minimise the effect of exchange rate fluctuation, purchase currencies are matched with selling currencies to the extent possible. For the proportion of the Group s sale that are transacted in currencies other than the local currency, or the purchase currency, the Group uses currency clauses and currency forward contracts to minimise these effects. The Group s foreign subsidiaries are financed in the relevant local currencies. The liquidity in different currencies is gathered into a shared cash pool. Credit risks Credit risks are actively assessed within all Group companies. Provisions for nonperforming receivables and bad debt losses are implemented according to common accounting principles. In the Cars and Trucks divisions, there is a considerable exposure in the form of leasing and rental contracts for sold vehicles. For these agreements, there is a recourse agreement to primarily Volvofinans. Security in the form of ownership rights and the right of repossession exists for all contracts and careful monitoring of outstanding customer contracts is conducted. The credit risk is spread over a large number of costumers operating within several different sectors. This, together with continuous monitoring and valuation of the division s outstanding credit undertakings lead to very small credit losses. Depreciation risks In the Machine Tools, Trucks and Cars divisions, there are inventories of new, used and demonstration machines, trucks and cars, whose value can be exposed to a declining market price. Within each division, there are guidelines and policies for the maximum outstanding value in the above named inventories. This is monitored continuously. Environment impact The companies in the Bare Wire and Winding Wire divisions are all certified in accordance with ISO In addition, AB Elektrokoppar is also registered in accordance with EMAS (EU regulation no: 1836/93). The Swedish companies conduct operations requiring permits under the Swedish Environmental Code. The environmental impact is mainly from smelting of copper and the emission of isopropanol in conjunction with the extrusion of copper wire rod. In the production of enamelled copper and aluminium wire, the outside environment is effected through the emission of organic solvents into the air. These emissions are far below European directive limits. Hörle Wire AB conducts operations requiring a permit in accordance with the Swedish Environmental Protection Act. The permit pertains to the manufacturing of pickled, zinc-coated and drawn wire at the company s facilities, where substances such as zinc, copper, pewter and suspended substances are consumed. The operations impact the external environment through emissions to air and water. Hörle Wire AB is third-party certified in accordance with the ISO environmental management system. The companies within the Trucks and Cars divisions conduct operations requiring permits through their ownership of wash halls for cars and trucks, repair shops and fuel sales. Environmental impact occurs primarily through emissions to air and water. No operational disruptions or abnormal incidents of significance to the external environment occurred during the fiscal year or after its close. Ownership Liljedahl Group AB is owned by Bengt Liljedahl, Fredrik Liljedahl and Anna Liljedahl. Disposition of earnings (SEK) Parent Company Funds at the disposal of the Annual General Meeting: Profit carried forward from the preceding year 567,318,058 Net profit for the year 37,269,380 Total 604,587,438 The Board of Directors and the President propose that available earnings be disposed: To be distributed to shareholders 10,000,000 To be carried forward 594,587,438 Total 604,587, Liljedahl Group Group Annual Report 2010

35 Income Statements Group Parent Company SEK 000s Note Net sales 1 11, , ,680 7,680 Change in inventories of products in progress and finished goods 93,819 17,197 Other operating revenue 43,653 54,845 1,407 1,298 Operating revenue 11,156,297 7,547,644 9,087 8,978 Operating expenses Raw material and goods for resale 9,624,483 6,181,278 Other external costs 532, ,358 5,830 3,693 Personnel costs 2 647, ,164 9,666 9,901 Amortisation of intangible fixed assets 9 38,423 30,178 Depreciation of tangible fixed assets 10 87,448 91, Other operating expenses 62,058 30,570 Operating profit/loss 1, 3 164,518 65,113 6,473 4,658 Result from financial investments Result from participations in Group companies 4 65, ,611 Interest income and similar items 5 42,350 45,986 14,365 7,947 Interest expense and similar items 6 40,810 51,418 4,612 4,175 Profit after financial items 166,058 59,681 68, ,725 Appropriations Tax on profit for the year 8 53,795 17,558 13,790 7,917 NET PROFIT FOR THE YEAR 112,263 42,123 37, ,380 Liljedahl Group Group Annual Report

36 Balance sheets Group Parent Company SEK 000s Note ASSETS Fixed assets Intangible assets 9 Goodwill 175, ,909 Total intangible assets 175, ,909 Tangible assets 10 Land and buildings 394, ,982 Plant and machinery 281, ,508 Equipment, tools, fixtures and fittings 56,225 56, Rental vehicles 9,188 10,571 Construction in progress 13,179 38,733 Total tangible assets 754, , Financial assets Shares in Group companies , ,298 Deferred tax assets 16,117 20,685 Receivables from Group companies 30,389 40,841 Other long-term receivables 1,566 3,433 Other long-term securities holdings 10, ,200 Total financial assets 28,455 24, , ,139 Current assets Inventories, etc. Raw materials and consumables 139, ,653 Products in progress 69,421 63,443 Finished products and goods for resale 670, ,635 Advance payment to suppliers 29,134 34,114 Total inventories, etc. 909, ,845 Current receivables Accounts receivable 1,145, ,654 5 Receivables from Group companies 486, ,194 Current tax assets 12,967 15, Other receivables 148, , Prepaid expenses and accrued income 12 28,733 34, Total current receivables 1,335,631 1,089, , ,444 Cash and bank balances 17,048 25, TOTAL ASSETS 3,219,680 2,994,111 1,162,157 1,020, Liljedahl Group Group Annual Report 2010

37 Group Parent Company SEK 000s Note SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity 13 Restricted shareholders equity Share capital (2,000,000 shares) 100, , , ,000 Restricted reserves/statutory reserve 152, ,459 8,000 8,000 Total restricted shareholders equity 108, ,000 Unrestricted shareholders equity Profit carried forward 598, , , ,938 Profit for the year 112,263 42,123 37, ,380 Total unrestricted shareholders equity 604, ,318 Total shareholders equity 963, , , ,318 Untaxed reserves 7 74,494 57,015 Liabilities Provisions Provisions for pensions and similar commitments 159, , Provisions for taxes 148, ,076 Other provisions 14 30,632 44,004 Total provisions 338, , Long-term liabilities 15 Liabilities to credit institutions 262, ,404 58,004 80,000 Other liabilities 12,450 13,656 Total long-term liabilities 275, ,060 58,004 80,000 Current liabilities Liabilities to credit institutions , , , ,882 Advance payment from customers 43,486 23,149 Accounts payable 328, , Liabilities to Group companies 65,460 34,054 Current tax liabilities 33,418 26,520 9,749 Other liabilities 78,335 33,577 5,883 5,811 Accrued expenses and deferred income , ,975 1,691 1,657 Total current liabilities 1,642,684 1,469, , ,892 TOTAL SHAREHOLDERS EQUITY AND LIABILITIES 3,219,680 2,994,111 1,162,157 1,020,722 Pledged assets 16 1,720,645 1,428,629 Contingent liabilities 17 13,596 11, , ,144 Liljedahl Group Group Annual Report

38 Cash-flow Statements Group Parent Company SEK 000s Operating activities Profit after financial items 166,058 59,681 68, ,725 Adjustments for non-cash items, etc. depreciation, excluding rental vehicles 123, , gain/loss from sale of fixed assets 3, increase/decrease of reserve 2,129 15, unpaid dividend/group contribution 41, ,611 other items 14,691 1,898 Paid tax 35,814 15,911 3,125 2,320 Cash-flow from operating activities before changes in working capital 267, ,722 24,097 5,004 Acquisition, sale and depreciation of rental vehicles 1,382 13,403 Cash flow from changes in working capital Increase ( )/decrease (+) in inventories 109,463 50,056 Increase ( )/decrease (+) in current receivables 266, , Increase (+)/decrease ( ) in current liabilities 195,978 88, Total changes in working capital 179,904 93, ,498 Cash flow from operating activities 88,506 96,198 23,827 6,502 Investing activities Acquisition of shares in subsidiaries 21,089 24,111 Acquisition of intangible fixed assets 2,348 Acquisition of other tangible fixed assets 58,170 91, Sale of other tangible fixed assets 7,655 3,467 Change in financial fixed assets 7,886 1,355 10, Cash flow from investing activities 60, ,239 10,349 24,144 Financing activities Change in liabilities to credit institutions 27,788 4,132 21,544 40,000 Inter-company transactions 13,067 62,642 Dividends paid 5,000 5,000 5,000 5,000 Cash flow from financing activities 32, ,477 17,642 Cash flow for the year 5,031 14, Cash and cash equivalents at the beginning of the year 25,775 41, Exchange-rate differences in cash and cash equivalents 3, Cash and cash equivalents at the end of the year 17,048 25, Liljedahl Group Group Annual Report 2010

39 Comments Accounting principles The annual report has been prepared in accordance with the Annual Accounts Act and the general recommendations of the Swedish Accounting Standards Board. In cases where no general recommendation of the Accounting Standards Board exists, the recommendations of the Swedish Financial Accounting Standards Council have been used for guidance. Consolidated accounts The consolidated accounts have been prepared in accordance with the purchase method, whereby subsidiaries shareholders equity at the time of their acquisition, determined as the difference between the fair values of assets and liabilities, is eliminated in its entirety. Consequently, the consolidated shareholders equity includes only the portions of subsidiaries shareholders equity that arose after their acquisition. Foreign subsidiaries have been translated in accordance with the current method. Revenue Revenue is recognised when the risks connected to ownership of the goods are transferred to the buyer. In cases of official business, revenue recognition occurred in the period when work was concluded and material delivered or consumed. Receivables and liabilities in foreign currency Receivables and liabilities in foreign currencies have been valued at the year-end rate, and unrealized exchange-rate gains and losses are included in earnings. Hedged receivables and liabilities have been valued at the contracted forward rate. Exchange-rate differences referring to on-going business operations have been credited/charged to operating profit, while exchange-rate differences of a financial nature have been recognised under financial income and expenses. Inventories Inventories have been valued at the lower of their acquisition value and net sale value. Fixed assets Assets are recognised at their acquisition cost less accumulated depreciation/amortisation according to plan. Depreciation/amortisation according to plan is based on the assets original acquisition values and estimated periods of use. The following depreciation/amortisation periods have been used: Goodwill 5 20 years Buildings years Plant and machinery 3 20 years Equipment, tools and fixtures and fittings 3 10 years For rental vehicles, depreciation is adjusted to reflect the age and period of use of each unit. Provisions Provisions are recognised in the balance sheets when the companies have a commitment resulting from an incident and it is pro b- able that an outflow of resources will be required to regulate the commitment and that a reliable assessment of the amount can be made. Other assets and liabilities Other assets and liabilities are recognised at their acquisition value. Taxes The Group s total tax expense consists of current tax and deferred tax. Current tax is tax that is paid or received in the current year. This includes any adjustment of current tax attributable to prior periods. Deferred tax is based on temporary differences between reported values and the values for tax purposes of assets and liabilities. The consolidated income statement shows taxes as if the companies in the Group had been considered as separate taxable legal entities in accordance with current legislation. The consolidated balance sheet presents individual companies untaxed reserves divided into shareholders equity and deferred tax liability. Liljedahl Group Group Annual Report

40 Notes Notes All amounts are in SEK 000s unless otherwise indicated. The amounts in parentheses refer to the preceding year. Note 1 PURCHASING AND SALES The Group's net sales were SEK 11,019 M (7,476), of which distributed by division: Bare Wire SEK 6,106 M (3,635), Winding Wire SEK 2,960 M (1,816), Steel Wire SEK 305 M (288), Machine Tools SEK 530 M (629), Trucks SEK 828 M (882), Cars SEK 287 M (223), Real Estate SEK 3 M (3). Parent Company: of the year s total purchasing and sales, 0% (0) of purchases and 100% (100) of sales refer to flows to/ from other companies within the Group to which the Company belongs. Note 2 PERSONNEL No. of Of whom, No. of Of whom, AVERAGE NUMBER OF EMPLOYEES employees men employees men Parent Company Sweden Total, Parent Company Subsidiaries Sweden Other Nordic countries Slovakia Germany Poland China Total, subsidiaries 1,191 1,048 1,226 1,096 Total, Group 1,199 1,051 1,233 1,099 SENIOR EXECUTIVES No. of Of whom, No. of Of whom, employees men employees men Parent Company Board of Directors President and other executives Subsidiaries Board of Directors Managing Directors and other executives WAGES, SALARIES AND OTHER REMUNERATION Board, President Board, President and Managing Other and Managing 1) Directors employees 1) Directors Other employees Parent Company 1,135 4,394 1,397 3,737 Subsidiaries Sweden 9, ,379 10, ,583 Other Nordic countries , ,573 Slovakia 7,022 7,148 Germany 71,529 73,171 Poland 1,532 10,330 1,515 8,363 China 1,685 1,710 Total, subsidiaries 11, ,120 13, ,548 Total, Group 12, ,514 14, ,285 1) Includes current and previous Board members and their deputy members the President as well as current and previous Managing Directors. WAGES, SALARIES AND OTHER REMUNERATION (continued) Wages, salaries and other remuneration Social security expense Of which pension expense Wages, salaries and other remuneration Of the Parent Company's pension expenses, 329 (329) refer to the Board of Directors and the president. Of the Group's pension expenses, 4,101 (4,310) refer to the Group's Board of Directors, the President and Managing Directors. Social security expense Of which pension expense Parent Company 5,529 3,173 1,056 5,134 2, Subsidiaries 452, ,082 39, , ,365 41,929 Total, Group 458, ,255 40, , ,076 42, Liljedahl Group Group Annual Report 2010

41 Note 3 AUDITORS FEES AND EXPENSE REMUNERATION Group Parent Company Ernst & Young AB Audit assignments 2,069 2, Other assignments Öhrlings Pricewaterhouse Coopers Other assignments Audit Partners Alliance (APA) Audit assignments Deloitte AS Audit assignments 47 Other assignments 116 Other audit companies Audit assignments Other assignments 41 Total 2,638 3, Note 4 RESULT FROM PARTICIPATIONS IN GROUP COMPANIES Parent Company Anticipated dividend 154,350 Group contribution 65,257 33,261 Total 65, ,611 Note 5 INTEREST INCOME AND SIMILAR ITEMS Group Parent Company Dividend Interest 14,226 14,135 14,365 7,787 Exchange-rate differences 27,764 31, Total 42,350 45,986 14,365 7,947 Parent Company: revenue from Group companies amounts to 14,306 (7,787). Note 6 INTEREST EXPENSE AND SIMILAR ITEMS Group Parent Company Interest 35,213 25,918 4,314 4,175 Exchange-rate differences 5,597 25, Total 40,810 51,418 4,612 4,175 Parent Company: no expenses pertain to Group companies. Liljedahl Group Group Annual Report

42 Notes Note 7 APPROPRIATIONS AND UNTAXED RESERVES Parent Company Appropriations Change in tax allocation reserve 17,478 3,423 Difference between book depreciation and depreciation according to plan 0 5 Total 17,478 3,428 Untaxed reserves Tax allocation reserve 74,429 56,951 Accumulated depreciation in excess of plan Total 74,494 57,015 Note 8 TAXES Group Parent Company Tax on profit for the year Current tax 40,012 33,912 13,790 7,917 Deferred tax 13,783 16,354 Total tax on profit for the year 53,795 17,558 13,790 7,917 Note 9 INTANGIBLE ASSETS Goodwill Group Opening acquisition values 471,579 Acquisitions for the year 2,348 Translation differences 3,762 Closing accumulated acquisition values 470,165 Opening amortisation 257,250 Amortisation for the year 38,423 Translation differences 601 Closing accumulated amortisation 295,072 Carrying amount 175,093 During the preceding fiscal year, the following amount was recognised, regarding: Amortisation 30,178 Write-down for Goodwill in Din Maskin AS of 8,900 is included in the amortisation for the year. 40 Liljedahl Group Group Annual Report 2010

43 Note 10 TANGIBLE ASSETS GROUP Land and Plant and 1) 2) buildings machinery Equipment, tools, fixtures and fittings Opening acquisition values 402,443 1,182, ,238 21,260 1,837,201 Investments 32,298 31,606 18,024 5,232 87,160 Sales/disposals 4,479 1,952 6,935 10,023 23,389 Translation differences 12,201 45,716 6,420 64,337 Closing accumulated acquisition values 418,061 1,166, ,907 16,469 1,836,635 Opening depreciation 92, , ,877 10,689 1,144,579 Sales/disposals ,596 6,234 14,332 Depreciation for the year 13,068 50,982 16,565 2,826 83,441 Translation differences ,640 5,164 39,434 Closing accumulated depreciation 102, , ,682 7,281 1,174,254 Opening revaluations 82,800 82,800 Revaluations for the year Depreciation for the year on revalued amount 4,007 4,007 Closing accumulated revaluation 78,793 78,793 Carrying amount 394, ,048 56,225 9, ,174 During the preceding fiscal year, the following amount were recognised, regarding: Depreciation 11,139 55,202 18,033 3,602 87,976 1) Property assessment values for the Swedish part of the Group: 180,295 (183,329). 2) Residual value for land amounts to 59,521 (65,622). Rental items Total PARENT COMPANY Equipment, tools, fixtures and fittings Opening acquisition values 1,093 Investments 149 Closing accumulated acquisition values 1,242 Opening depreciation 955 Depreciation for the year 64 Closing accumulated depreciation 1,019 Carrying amount 223 During the preceding fiscal year, the following amount was recognised, regarding: Depreciation 42 Liljedahl Group Group Annual Report

44 Notes Note 11 SHARES AND PARTICIPATIONS IN SUBSIDIARIES Corp. Reg. No. Registered office No. of shares HOLDINGS Share of capital (% of voting rights) Carrying amount Dec VALUE OF HOLDINGS Carrying amount Dec Liljedahls Wire AB Värnamo 4,670, (100) 519, ,917 Liljedahl Winding Wire AB Värnamo 100 (100) AB Dahréntråd Essunga 100 (100) AB Elektrokoppar Helsingborg 100 (100) Isodraht GmbH HRA 4566 Mannheim 100 (100) EKS Isodraht Profiles (Taicang) Co. Ltd., China Taicang 100 (100) LWW Slaska Sp.z.o.o., Poland KRS Czechowice- 100 (100) Dziedzice Hörle Wire AB Värnamo 120, (100) 18,737 18,737 Hörle Wire s.r.o., Slovakia 36,292,818 Nitra 100 (100) Liljedahl Machine Tools AB Värnamo 1, (100) 75,232 75,232 Ravema AB Värnamo 175, (100) 30,268 Ravema AS, Norway Oslo 100 (100) Ravema Oy, Finland Tampere 100 (100) Din Maskin i Värnamo AB Värnamo 100 (100) Din Maskin AS Saetre 30, (100) 24,024 Finnvedens Lastvagnar AB Jönköping 50, (100) 8,806 8,806 HGL Bil AB Jönköping 100 (100) Finnvedens Bil AB Värnamo 2, (100) 2,000 2,000 Liljedahlsbolagens Fastighets AB Värnamo 1, (100) 9,314 9,314 Liljedahls Fastigheter Essunga AB Värnamo ( ) Liljedahls Fastigheter Helsingborg AB Värnamo ( ) Liljedahls Fastigheter Hörle 3:22 AB Värnamo ( ) Liljedahls Fastigheter Värnamo AB Värnamo ( ) Liljedahls Fastigheter Växjö AB Värnamo ( ) Liljedahls Fastigheter nr 1 KB Värnamo (100) 0 0 Liljedahls Fastigheter nr 2 KB Värnamo (100) 0 0 Liljedahls Fastigheter nr 3 KB Värnamo (100) 0 0 Total 634, ,298 During the year, the Machine Tools division has been restructured through the acquisition by Liljedahl Machine Tools AB of shares in Ravema AB and Din Maskin AS from Liljedahl Group AB. Liljedahl Machine Tools AB is now the parent company within the division. During the year Liljedahls Fastigheter Essunga AB, Liljedahls Fastigheter Helsingborg AB, Liljedahls Fastigheter Hörle 3:22 AB, Liljedahls Fastigheter Värnamo AB and Liljedahls Fastigheter Växjö AB have been merged with the parent company Liljedahlsbolagens Fastighets AB. Note 12 PREPAID EXPENSES AND ACCRUED INCOME Group Parent Company Prepaid rent 2,451 4, Prepaid insurance 592 1, Accrued interest income Accrued bonus revenue 6,833 3,630 Settlement listed options 4,764 Other items 18,253 20, Total 28,733 34, Liljedahl Group Group Annual Report 2010

45 Note 13 CHANGE IN SHAREHOLDERS EQUITY GROUP Share capital Restricted reserves Unrestricted equity Amount at beginning of the year 100, , ,357 Dividend 5,000 Adjustment between unrestricted and restricted shareholders equity 30,375 30,375 Currency translation on inter-company transactions 2,485 Translation difference for the year 17,758 6,647 Net profit for the year 112,263 Amount at the end of the year 100, , ,113 PARENT COMPANY Share capital Statutory reserve Unrestricted equity Amount at beginning of the year 100,000 8, ,318 Dividend 5,000 Net profit for the year 37,269 Amount at the end of the year 100,000 8, ,587 Note 14 OTHER PROVISIONS Group Parent Company Other provisions consist of the following sub-items: Guarantee commitments 15,818 21,620 Unapproved deliveries 147 1,235 Restructuring reserve 2,299 7,600 Other provisions 12,368 13,549 Total 30,632 44,004 Not 15 LONG-TERM LIABILITIES Group Parent Company Debts that mature later than five years after the closing date 172, ,587 Note 16 PLEDGED ASSETS Group Parent Company Property mortgages 253, ,735 Chattel mortgages 656, ,600 Rental vehicles 2,850 6,303 Installment-plan receivables 16,963 19,211 Tangible fixed assets 39,084 Inventories 277, ,559 Accounts receivable 473, ,221 Total 1,720,645 1,428,629 Liljedahl Group Group Annual Report

46 Notes Note 17 CONTINGENT LIABILITIES Group Parent Company Surety commitments on behalf of subsidiaries 452, ,612 Guarantee commitments 13,596 11, Guarantee commitments on behalf of subsidiaries 65,469 62,522 Total 13,596 11, , ,144 Note 18 LIABILITIES TO CREDIT INSTITUTIONS Group Parent Company Overdraft facility Amount granted 784, , , ,000 Amount utilised 456, , , ,882 Invoice factoring credit Amount granted 751, ,000 Amount utilised 465, ,367 Note 19 ACCRUED EXPENSES AND PREPAID INCOME Group Parent Company Salary and vacation pay liability 62,057 60, Social security fees 41,568 40, Accrued interest Additional expenses for sold vehicles 3,569 1,673 Accrued energy costs 3,152 4,078 Accrued costs for LME broker pertaining to metal hedging 16,527 19,000 Other items 66,519 70, Total 193, ,975 1,691 1,657 Värnamo, April 7, 2011 Stig-Arne Blom Anders Birgersson Sven A Olsson Chairman of the Board Member of the Board Member of the Board Anders Paulsson Member of the Board Bengt Liljedahl President Member of the Board My audit report has been submitted this day, 7 April 2011 Stefan Engdahl Authorised Public Accountant 44 Liljedahl Group Group Annual Report 2010

47 Audit report To the Annual Meeting of Liljedahl Group Aktiebolag, Corporate Registration No I have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the Board of Directors and the President of Liljedahl Group Aktiebolag for the fiscal year January 1, 2010 December 31, The company s annual report and the consolidated financial statements are presented on pages These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts and the consolidated accounts are the responsibility of the Board of Directors and the President. My responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on my audit. I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the Board of Directors and the President, and significant estimates made by the Board of Directors and the President when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for my opinion concerning discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any Board member or the President. I also examined whether any Board member or the President has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that my audit provides a reasonable basis for my opinion set out below. The annual accounts and the consolidated accounts have been prepared in accordance with the Annual Accounts Act and, give a true and fair view of the company s and the Group s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts. I recommend to the annual meeting of shareholders that the income statements and balance sheets of the Parent Company and the Group be adopted, that the profit of the Parent Company be dealt with in accordance with the proposal in the administration report and that the members of the Board of Directors and the President be discharged from liability for the financial year. Jönköping, April 7, 2011 Stefan Engdahl Authorised Public Accountant ERNST & YOUNG AB Auditor Stefan Engdahl Authorised Public Accountant ERNST & YOUNG AB Deputy Auditor Joakim Falck Authorised Public Accountant ERNST & YOUNG AB Liljedahl Group Group Annual Report

48 Board of Directors Sven A Olsson Member of the Board. Solicitor at Law Born Member of the Board of IPP B V, Gunvor B V, Smedbo AB, Camp of Scandinavia AB, Aller Media AB, SOVAG GmbH, Volga SICAV, Labrusca Family Office AB and Meerwind AB. Anders Birgersson Member of the Board. MSc Mach Eng. Technician. Born President and Group CEO for VBG Group AB (publ). Member of the Board of VBG Group AB (publ), KMT Precision Grinding AB and Christian Berner Tech Trade AB.. Stig-Arne Blom Chairman of the Board. MSc Eng. Born Chairman of the Board of Lidhs Förvaltnings AB, Pulsen AB, Plastal Industri AB, Pedab AB and Elos AB. Member of the Board of Beijer Electronics AB, Bergs Propulsion AB, Ulricehamns Energi AB and Handels banken Region Väst. Anders Paulsson Member of the Board. MSc Eng. Born President and Group CEO for DIAB Group AB. Has worked within ABB as President for ABB Flexible Automation, and Draka Kabel. Bengt Liljedahl President and Group CEO. Member of the Board. MSc Econ. Born Vice-Chairman of the Board of Jönköping International Business School and of the Jönköping County Chamber of Commerce. Holding in Liljedahl Group AB: 200,000 A shares and 1,000,000 B shares. Substitute Board Member Anna Liljedahl MSc Econ. Born Global Product Manager New Products, HemoCue AB. Holding in Liljedahl Group AB: 400,000 B shares. Substitute Board Member Fredrik Liljedahl Business Development Manager. MSc Eng. MSc Econ. Born Holding in Liljedahl Group AB: 400,000 B shares. 46 Liljedahl Group Group Annual Report 2010

49 Senior Management Niklas Nilsson Division Manager Liljedahl Cars Mikael Darius Division Manager Liljedahl Trucks Håkan Larsson Division Manager Liljedahl Machine Tools Johan Westberg Division Manager Liljedahl Winding Wire Leif Olsson Division Manager Liljedahl Bare Wire Ola Karlsson Division Manager Liljedahl Steel Wire Bengt Liljedahl President and Group CEO Liljedahl Group AB Torbjörn Persson CFO Liljedahl Group AB Division Manager, Liljedahl Real Estate Liljedahl Group Group Annual Report

50 Addresses LILJEDAHL BARE WIRE AB Elektrokoppar Box 914, SE Helsingborg Sweden Tel: Fax: Isodraht GmbH Rhenaniastrasse Box DE Mannheim, Germany Tel: Fax: EKS Isodraht Profiles (Taicang) Co. Ltd. Part A. Factory building 3 55 Dong Ting Bei Lu, CN Taicang, Jiangsu, China Tel: Fax: LILJEDAHL WINDING WIRE AB Dahréntråd Jonslund, SE Nossebro Sweden Tel: Fax: Isodraht GmbH Rhenaniastrasse Box DE Mannheim, Germany Tel: Fax: LWW Slaska Sp.z o.o Czechowice Dziedzice Ul. Legionów 83, Poland Tel: Fax: EKS Isodraht Profiles (Taicang) Co. Ltd. Part A. Factory building 3 55 Dong Ting Bei Lu, CN Taicang, Jiangsu, China Tel: Fax: LILJEDAHL STEEL WIRE Hörle Wire AB Hörle 1, Box 546, SE Värnamo, Sweden Tel: Fax: Hörle Wire s.r.o. Dvorcianska ˆ 59/411 SK Nitra, Slovakia Tel: Fax: LILJEDAHL MACHINE TOOLS Ravema AB Margretelundsv. 1 Box 423, SE Värnamo Sweden Tel: Fax: Ravema AS Åsveien 21 N-3475 Sætre, Norway Tel: Fax: Ravema Oy Takojankatu 15 B FI Tammerfors (Tampere) Finland Tel: Fax: Din Maskin i Värnamo AB Silkesvägen 22 Box 742, SE Värnamo Sweden Tel: Fax: Din Maskin AS Åsveien 21 N-3475 Sætre, Norway Tel: Fax: LILJEDAHL TRUCKS Finnvedens Lastvagnar AB Kraftgatan 11 Box 2014, SE Jönköping Sweden Tel: Fax: LILJEDAHL CARS Finnvedens Bil AB Nydalavägen Box 244, SE Värnamo Sweden Tel: Fax: LILJEDAHL REAL ESTATE Liljedahlsbolagens Fastighets AB Margretelundsvägen 1 Box 420, SE Värnamo Sweden Tel: Fax: Liljedahl Group Group Annual Report 2010

51 Liljedahl Group Group Annual Report

52 Liljedahl Group AB Margretelundsvägen 1, Box 420, SE Värnamo, Sweden Tel: , Fax: