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Interim
Report
4 2016
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Positive end to the year, with higher order intake and improved profit
JANUARY—DECEMBER 2016
Per Samuelsson, CEO and Joakim Laurén, CFO
Agenda
About us
Key events in the quarter
Financials
New segment reporting 2017
Q&A
|2
Beijer Electronics — an innovative company within
Industrial Automation and Data Communication

Founded in 1981

Global headquarter in Malmö


|3
A global supplier—present in Americas,
Europe and Asia
R&D facilities in Sweden, Germany, Taiwan
and USA

20% of all employees in R&D

Revenue 2015: 1.4 BSEK
The business is divided in two business areas up to 2016
Business
area
IDC
Technology
area
COMMUNICATE
VISUALIZE - HMI
Complementing 3rd
party products
Switches, Routers,
Ethernet extenders
Human Machine
Interface (HMI)
Control Systems,
Frequency inverters
etc.
IAS
Main
products
Brands
Own developed products
|4
Brand label &
3rd party products
Agenda
About us
Key events in the quarter
Financials
New segment reporting 2017
Q&A
|5
Key events in the quarter

Change work ongoing...

New more flat and agile organization starts to add value

Restructuring program in IAS finalized according to plan


New product releases in the pipeline for 2017

Continued focus on Train segment within Westermo

Investment in production facilities at Stora Sundby, Sweden

|6
Product development activities continued on high level in IAS
as well as in Westermo and Korenix
Korenix target Surveillance and Transport segments with
Wireless technology

Order growth

Sales moving sideways

Operating profit positive
Financial targets for the group
Within a 2-3 year timeframe, the group will achieve minimum organic
growth of 7% per year, and in the first phase, achieve a minimum EBIT
margin of 10%, measured as an average over a business cycle. With the
current financial structure, this equates to a return on equity of some
20%.
|7
Agenda
About us
Key events in the quarter
Financials
New segment reporting 2017
Q&A
|8
Group
Group ― Positive end to the year and boosted orders in
the quarter
Q4 2016 Q4 2015
(MSEK)
+/-
FY 2016 FY 2015
+/-
Order intake
331.1
343.1
-3.5%
1,142.5
1,332.6
-14.3%
Sales
286.6
333.0
-13.9%
1,121.5
1,374.6
-18.4%
EBITDA
22.8
6.3
260.5%
23.0
115.5
-80.1%
EBITDA %
8.0%
1.9%
2.1%
8.4%
7.3
-10.7
-39.4
52.2
2,5%
-3,2%
-3,5%
3,8%
EBIT
EBIT %
-167.8%
-175.4%
Sales & EBIT (%) per quarter, MSEK
400
350
366
328 336
346
346 355
365
335
352
16%
368
322
12%
333
281 283 271 287
300
0%
200
‐4%
150
‐8%
100
‐12%
50
‐16%
‐20%
0
Q1
Q2 Q3
2013
Q4
Q1
Q2 Q3
2014
Q4
Sales
|9
Q1
Q2 Q3
2015
EBIT (%)
Q4
Q1
Q2 Q3
2016
Q4
 Improved EBIT and the fifth
consecutive improved quarter, yet
still on low levels.
 Q4 orders +22% compared to average
earlier 2016. Sequential growth in
both business areas.
 Sales overall basically moving
sideways by quarters even if Q4 was
the best in 2016.
8%
4%
250
Comments for the quarter and FY
 Restructuring activities behind
improved profitability and a 50 MSEK
program was charged in Q1.
 R&D expenses remained at high level
at 137 MSEK (134) for the full year.
 Full year EBT impacted in Q3 by
72 MSEK impairment of Altus in
Brazil.
IAS
IAS ― Restructuring activities finalized and contributes to
profitability
Q4 2016 Q4 2015
(MSEK)
+/-
FY 2016 FY 2015
+/-
Comments for the Quarter and YTD
 Restructuring program basically
finalized and outcome according to
plan.
Order intake
158.8
179.7
-11.6%
609.1
798.4
-23.7%
Sales
156.2
184.5
-15.4%
623.3
818.8
-23.9%
EBITDA
10.6
-11.5
-192.4%
-14.4
38.3
-137.6%
EBITDA %
6.8%
-6.2%
-2.3%
4.7%
5.4
-17.3
-34.1
17.1
3.5%
-9.4%
-5.5%
2.1%
EBIT
EBIT %
-131.2%
-300.1%
Sales & EBIT (%) per quarter, MSEK
300
15%
256
250
237 240 237
10%
240 237
217
229
218 221
5%
196
200
0%
185
164
156
150
147
156
‐10%
‐15%
100
‐20%
50
‐25%
‐30%
0
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
Q4
2014
Q1
Q2
Q3
2015
Sales
| 10
‐5%
EBIT (%)
Q4
Q1
Q2
Q3
2016
Q4
 Orders sequentially by quarter show
small growth but still at low levels.
 Sales moving sideways where Asia is
growing while Europe shows a slight
decrease impacted by market
situation in Turkey and Americas on
similar levels.
 Product development activities
continued at high levels with
further releases during 2017.
 EBIT positive but yet at low
numbers.
IDC
IDC ― Good orders in the quarter and profitability
remains
Q4 2016 Q4 2015
(MSEK)
+/-
FY 2016 FY 2015
+/-
Order intake
172.3
163.4
5.4%
533.3
534.2
-0.2%
Sales
132.1
150.4
-12.2%
505.0
567.6
-11.0%
18.9
18.7
1.0%
63.8
80.3
-20.6%
14.3%
12.4%
12.6%
14.1%
EBIT
11.0
10.4
32.0
49.7
EBIT %
8.4%
6.9%
6.3%
8.8%
EBITDA
EBITDA %
6.3%
-35.6%
Sales & EBIT (%) per quarter, MSEK
160
136 137
140
100
129 126 132
130
121 119
120
118
110 111 107
91
20%
150
150
16%
14%
97
12%
80
10%
60
8%
6%
40
4%
20
2%
0
 Orders good in the quarter at +5% vs
last year and +22% vs average earlier
2016. Westermo at all-time-high
quarter and Korenix at +21%.
 Sales at -12% vs last year due to less
project deliveries but sequentially by
quarter in 2016 we see a positive
trend.
 Similar result in Q4 due to better
gross margins and lower costs. FY
lower EBIT fully due to the lower
sales level as gross margins and
lower costs not fully compensate.
 Product development activities kept
on high levels with product releases
to come.
0%
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2015
2014
Sales
| 11
18%
Comments
EBIT (%)
Q4
Q1
Q2
Q3
2016
Q4
 Supply chain investments in
Westermo ongoing according to plan.
Outlook for 2017
” Beijer Electronics finished 2016 in a positive trend. The
realignment of the year, with a significantly reduced cost base, new
product range and more customer-oriented sales organization, has
made the group stronger. Accordingly, we expect the group to be
able to achieve higher sales and better underlying operating profit in
2017 than achieved in 2016 ”
| 12
Agenda
About us
Key events in the quarter
Financials
New segment reporting 2017
Q&A
| 13
New Segment reporting 2017




| 14
As from 2017, the Beijer Electronics Group will change segment
reporting.
The former Business areas IAS and IDC will be replaced by the Business
entities Beijer Electronics, Westermo and Korenix.
IAS will be called Beijer Electronics.
IDC will be split into Westermo and Korenix where Westermo represent
approx. 80% of the sales in Business area IDC.
Agenda
About us
Key events in the quarter
Financials
New segment reporting 2017
Q&A
| 15