Be-Ge Annual Report 2017-2018

BE-GE KONCERNENS ÅRSBERÄTTELSE 2017-2018

Be-Ge Företagen AB ANNUAL REPORT 2017-2018

Be-Ge Företagen AB

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

This report on the financial year 2017-2018 is not an Annual Report for the Group, but a description of each Group Company's operations and results. Current information about significant progress and events are available on www.be-ge.se.

Further information can be obtained from the Be-Ge Group Headquarters, phone number +46 491 45 46 10, or by CEO HĂĽkan Hjalmarsson.

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

This is the Be-Ge Group______________________________________ 4 Development of the Be-Ge Group _____________________________ 6 Message from the Owners____________________________________ 9 The Chief Executive's Review_________________________________ 10 Managing Directors and Site Managers of the Be-Ge Group_____ 12

Be-Ge Industri AB___________________________________________ 14 Be-Ge Jany A/S______________________________________________ 16 Be-Ge Savas Seating B.V.____________________________________ 18 Be-Ge Seating UK Ltd________________________________________ 20

Be-Ge Stece AB______________________________________________ 22 Be-Ge Plåtindustri AB________________________________________ 24 Be-Ge Baltic UAB____________________________________________ 26 Be-Ge Lackering AB__________________________________________ 28

Be-Ge Lastbilar AB__________________________________________ 30 Be-Ge Personbilar AB________________________________________ 32

The Board___________________________________________________ 34 Income Statement & Balance Sheet___________________________ 36 Key Ratios__________________________________________________ 37

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

The Be-Ge Group The Be-Ge Group is a family-owned group of companies with operations in Sweden, Denmark, Great Britain, Lithuania, the Netherlands, Germany and Belgium. The Group comprises of the business areas Be-Ge Seating Division, Be-Ge Component Division and Be-Ge Vehicle Division.

BE-GE INDUSTRI AB Turnover SEK 289 million Employees 110 BE-GE JANY A/S Turnover SEK 62 million Employees 37 BE-GE SEATING UK LTD Turnover SEK 20 million Employees 8

BE-GE SAVAS SEATING B.V. Turnover SEK 65 million Employees 35

BE-GE SEATING GMBH Turnover SEK 7 million Employees 4

SAVAS N.V. Turnover SEK 12 million Employees 3

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

PARENT COMPANY BE-GE FÖRETAGEN AB Employees 11

BE-GE SEATING DIVISION

BE-GE VEHICLE DIVISION

BE-GE COMPONENT DIVISION

REAL ESTATE

BE-GE PERSONBILAR AB Turnover SEK 231 million Employees 39 BE-GE LASTBILAR AB Turnover SEK 234 million Employees 52 BE-GE FASTIGHETER AB Turnover SEK 4 million Employees 0

BE-GE LACKERING AB Turnover SEK 23 million Employees 27

BE-GE BALTIC UAB Turnover SEK 22 million Employees 90 MÖNSTERÅS PRESSDETALJER AB Turnover SEK 15 million Employees 11 FRAPETT PRODUKTION AB Turnover SEK 18 million Employees 16

BE-GE PLÅTINDUSTRI AB Turnover SEK 81 million Employees 54

BE-GE STECE AB Turnover SEK 91 million Employees 57 5

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Development of the Be-Ge Group 1934

1987

Bror Göthe Persson took over the import and sales of Ford motorcars in Oskarshamn. He was somewhat of a visionary with an early insight of the importance of motorisation.

Be-Ge Förarmiljö AB was established in Kolsva, Sweden specialising in the sales of driver seats and equipment for forest machinery.

1941 Be-Ge Bil became sales agent for Scania Vabis trucks and is today the world’s oldest private Scania agent.

1946 AB Be-Ge Karosserifabrik was established.

1949 The first modern suspended driver seats for trucks were developed.

1951

The seat manufacturer Nyström Nordpatent AB in Umeå was acquired giving Be-Ge Industri AB a wider product programme with bus and truck seats and also office chairs. Bil & Maskin AB in Vetlanda was acquired, which increased the region for the sales of cars and trucks.

1993 Be-Ge Traktor & Maskin i Åstorp AB started and became the general agent for Zetor tractors and Agrostroj agricultural machines. In the same year Bilcenter i Oskarshamn AB was established for the sale of seats, later on also Skoda private cars.

Be-Ge Bil became sales agent for Volkswagen.

1996

1962

Be-Ge Industri AB was certified according to ISO 9001.

The expansion continued and a factory was built for the manufacture of truck cabs also in the Netherlands.

1999

1966 The coachwork factories were acquired by Scania Vabis of Södertälje. The manufacture of truck cabs is still in Oskarshamn and is one of Kalmar County’s largest employers. The manufacture of the driver seats, to be fitted in the truck cabs, remained a BeGe production that continued in the new company Be-Ge Stolindustri AB, today Be-Ge Industri AB. 6

1990

The vehicle companies were certified according to ISO 9002.

2000 The activities in Umeå, Sweden were moved to Oskarshamn and the industrial facilities in Umeå were sold.

2001 Jany Scandinavia A/S and Vald. Nielsen & Son A/S in Denmark, also Oskarshamns Plåtindustri AB were acquired.

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Bror Göthe Persson, Founder of the Be-Ge Group

2002

2010

Billackeringen E. Johansson AB in Oskarshamn was acquired as a future development of vehicle and industrial paint work.

The partly-owned Be-Ge Förarmiljö AB is sold and the name is changed to Förarmiljö i Sverige AB.

2003 The two Danish companies Jany A/S and Vald.

Nielsen A/S were merged and the Copenhagen office closed down. In the same year the rights were acquired to market the office chair called “Ullmanstolen”.

2005 The vehicle plant in Oskarshamn was extensively enlarged. Be-Ge Traktor & Maskin i Åstorp AB was sold.

2006 Be-Ge Företagen AB acquired 80% of the Lithuanian company UAB Amersanas and 1/3 of the industrial company Stece AB in Mönsterås, Sweden. Be-Ge Seating UK Limited was established in Coventry, England.

2007 Be-Ge Företagen AB increased its share holdings in Stece AB to 50%.

2008 Be-Ge Baltic UAB and Be-Ge Stece AB became wholly-owned subsidiaries of Be-Ge Företagen AB.

2012 A new service centre for Scania opens in Hultsfred, Sweden.

2014 Be-Ge Industri AB acquires 80% of Savas Seating B.V. in Zaltbommel, the Netherlands, including the subsidiaries Savas Qualitätsitze GmbH in Germany and Savas N.V. in Belgium.

2015 Savas Seating B.V. with subsidiaries became wholly-owned subsidiaries of Be-Ge Industri AB and the name is changed to Be-Ge Savas Seating B.V.

2017 Frysen Invest AB with the subsidiaries Visby Tunga Fordon AB and Visby Fordonfinanas AB are acquired, whereby the region for trucks is expanded within the county of Gotland.

The property Järneken 5 is aquired to ensure future assembly capacity for vehicle seats in Oskarshamn.

2018 The companies Frapett Produktion AB and Mönsterås Pressdetaljer AB, both based in Mönsterås, Sweden are acquired.

2009 Be-Ge Personbilar AB celebrates its 75th anniversary. Be-Ge Fastigheter AB is established.

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

1 048

MILLION

THE GROUP'S TURNOVER AMOUNTED TO SEK 1048 MILLION

65

MILLION

PROFIT AFTER FINANCIAL ITEMS AMOUNTED TO SEK 65 MILLION

69

PERCENT

EQUITY RATIO FOR THE YEAR IS 69 PERCENT

62

MILLION

INVESTMENTS DURING THE YEAR AMOUNTED TO SEK 62 MILLION 8

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

23

PERCENT OUTSIDE SWEDEN

SALES OUTSIDE SWEDEN AMOUNTED TO 23 PERCENT

550

EMPLOYEES

THE GROUP HAS 550 EMPLOYEES, OF WHICH 177 ARE OUTSIDE SWEDEN

Message from the Owners The past financial year has once again been a good one. For the first time our turnover has passed one billion SEK, which so far is our best result.

As in previous years we have made a number of investments.

Through the purchase of a neighbouring property we have secured premises for Be-Ge Industri AB's future expansion.

The Group has also acquired two companies in Mönsterås,

a neighbouring municipaity, which fit into our corporate culture, complementing and strengthening our operations.

Be-Ge Lastbilar AB has acquired Scania's operations in Gotland.

The bus terminal in Oskarshamn, previously acquired by Be-Ge Lastbilar AB, is in full operation.

Our talented employees, high quality products and a competent board make the future look positive and give us the

opportunity to continue growing with a stable economy.

We thank Erland Persson for a fantastic job and welcome Håkan Hjalmarsson as the new CEO. For the Owners of the Be-Ge Group Per-Erik Persson

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Chief Executive's Review

Håkan Hjalmarsson Managing Director and CEO

Long-term stability is the key to the Be-Ge Group's prosperity The financial year 2017-2018 was in many ways a record year for the Be-Ge Group. Sales for the first time in the Be-Ge Group's history amounted to more than SEK 1 billion. With an operating profit of SEK 65 million, the Group delivers a result that is an all time high. Be-Ge Group's good profitability and positive cash flow during the last five year period is the result of the long-term stability that is characteristic of the Group and its owners.

Be-Ge Seating Division has had a good financial year, broadly equivalent to our high expectations for the division, with sales of SEK 414 million and a profit after financial items of SEK 45 million.

The markets in which the division operates are still developing positively. Be-Ge Seating Division continues its strategic work on brand building and to expand sales of the division's products in Central Europe, UK and Ireland, as well as in the Nordic countries.

Sales in the Be-Ge Component Division amounted to SEK 213 million and profit after financial items to SEK 16 million. Be-Ge Stece AB's efforts to find new products, customers and markets, after one of its major customers' model replacement and volume loss last year, have been partly successful 10

and the work is progressing. Be-Ge Lackering AB had major problems in the financial year 2016-2017 with production and delivery of details to one of the company's major customers in the industrial field.

This resulted in termination of the existing agreement, which ended in April 2018 and adversely affected the profitability also for the financial year 2017-2018. During the current year we have fortunately found the conditions for continued cooperation through a new agreement with the customer. This makes us look with confidence to the company's upcoming financial year. The other two companies in the division, Be-Ge Plåtindustri AB and Be-Ge Baltic UAB, have progressed well, particularly Be-Ge Plåtindustri AB wich has exceeded the expectations.

Be-Ge Vehicle Division has had a slightly less profitable year. This is partly explained by additional costs associated with the expansion of the business through acquisition of Visby Tunga Fordon AB in Gotland, but also by a reduced demand for the company's services of repair and maintenance of vehicles. Sales amounted to SEK 485 million and profit after financial items to SEK 7 million.

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Investments during the year

This work is well in progress and will take effect during the coming financial year.

In order to meet customer expectations and to be a proactive partner of customer relationships, it is important to invest in both equipment and personnel to ensure delivering goods and services with high efficiency and quality as well as on time.

Following are examples of investments made during the year: • Acquisition in Oskarshamn of Be-Ge Industri AB's neighbouring property, Järneken 5, to ensure future assembly capacity for vehicle seats.

Companies in the Group which have supplied the OEM market during 2017-2018 have not received the price increases required to obtain compensation for material prices affecting the production cost. Negotiations to increase the prices for our products are ongoing, especially as further price increases from material suppliers have been announced.

•

Potentials

•

Investment made in the premises in Vetlanda to modernise and adapt the car dealership and make it even more attractive to our car customers.

The truck dealer Visby Tunga Fordon AB was acquired as per July 1, 2017. The company is engaged in sales and service of Scania trucks and buses in Gotland. The acquisition expands the market area and Be-Ge Lastbilar AB becomes a larger and more resourceful retailer of the Scania segment. The measures taken during the year to integrate the acquired business in Visby have had a negative impact on the result.

•

As per April 30, 2018, Frapett Produktion AB was acquired by the Be-Ge Group through its subsidiary Be-Ge Industri AB. Frapett AB develops, manufactures and markets office, saddlery and support chairs, also sound absorbers for offices and public areas, thereby complementing the Be-Ge Industri AB's operations in the office and surveillance seat segment.

•

As per April 30, 2018, Mönsterås Pressdetaljer AB was acquired by Be-Ge Stece AB. Mönsterås Pressdetaljer AB subsequently became a wholly owned subsidiary of the BeGe Group. The company's operations consist of pressing of metal components and associated post processing as well as subcontracting. The operations within the Component Division have been strengthened through this acquisition, for instance, expertise in pipe bending has been added.

We are satisfied with the financial year 2017-2018, but there are always things that can be done better. The profitability of the vehicle sector will be strengthened during the financial year 20182019 by an unprofitable part being phased out at the end of the year. In addition, operations in Visby will be fully integrated in the truck business. These conditions will improve the profitability for Be-Ge Lackering AB. The good economic climate that we have been able to take advantage of during the financial year 2017-2018 shows no signs of slowing down in the near future, which means that we are positive about further development and growth in all our divisions, either through organic growth or through acquisitions. However, there is a risk that the strong economy and the upturn in world trade can be broken if the US threat of custom duties and risk of counter measures has the potential of leading to a trade war. For Europe, US custom duties targeting the European automotive industry would provide clearly negative effects on both exports and investments. There is also a political concern within the EU regarding the election results in Italy and the Brexit negotiations.

Finally, I want to thank all our employees for their great efforts during the year. Be-Ge Group's success is a result of our employees' commitment, without which further development would not be possible.

The Group has in total invested SEK 62 million during the financial year. During the last five years investments have amounted to SEK 222 million, reflecting the Group's future and long-term prospects. All investments have been funded with equity.

Challenges

Håkan Hjalmarsson CEO and MD

Due to the partially changing demand for services in the Group's field of vehicle business, the operations must be adjusted by offering the customers additional services and products.

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Managing Directors and Site Managers of the Be-Ge Group

Bo Waldebjer

Lene Bech

Ivo Heuvelmans

Gary Shaw

Robert Nyqvist

Born 1962

Born 1976

Born 1972

Born 1968

Born 1967

"Be-Ge has developed yet another Dream Seat for the users"

"Complete Safety Products is our Core business”

"There is a Seat Solution for Every need"

"The Road to Success is Always under Construction"

"Customer Value created

by Expertise and Service"

Be-Ge Industri AB

Be-Ge Jany A/S

Be-Ge Savas Seating B.V.

Be-Ge Seating UK Ltd

Be-Ge Stece AB Be-Ge Lackering AB (Acting MD)

Position: Man.Dir. Employed: 2000

Position: Site Man. Employed: 2006

Position: Site Man. Employed: 2013

Position Site Man. Employed: 2006

Position: Man.Dir. Employed: 2007

Education:

Education:

Education:

Education:

Education:

Technical High School, Mechanical Engineering

Cand. Merc. Organisation & Strategy

University, Human Resources

IMD Business School – The Lausanne Managerial Development

M.Sc. Mechanical Engineering, Linköping University

IHM advanced certificate in Business Management, IHM Business School

University, Business Management

Montford County High School Warrington Technical College

Previous experience:

Previous experience:

Previous experience:

Previous experience:

Previous experience:

Deputy Man.Dir. Press & PlåtGruppen AB

Business Controller Brandex

Manager Human Resources (Steel Business)

Commercial Advisor Trade Commission of Denmark

Man.Dir. Carrab Industri

Man.Dir. Press & Plat N.V. Belgium

Financial Controller Kilroy Group Travel

Location Manager (Steel Business)

LPM Manager Lansing Linde Sterling

Press & Plåtindustri AB Spare Parts Manager Valmet, Sisu OY

Consultant TRR Trygghetsrådet Techn. Man. FCI Katrineholm

Prod. Eng. Man. De La Rue Cash Systems Project Leader De La Rue Cash Systems

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Birger Andersson

Vaida Vaičaitienė

Tomas Engsund

Peter Ek

Born 1965

Born 1974

Born 1965

Born 1965

"Continuous Improvement is our Driving force"

"Our work creates Good Conditions for Customer Success"

"Increased Availability and Reduced Lead times give our customers higher Utilisation Rates"

"Supplied Customer Value is based on Knowledge, Speed and Flexibility”

Be-Ge Plåtindustri AB

Be-Ge Baltic UAB

Be-Ge Lastbilar AB

Be-Ge Personbilar AB

Position: Man.Dir. Employed: 2004

Position: Man.Dir. Employed: 2007

Position: Man.Dir. Employed: 2013

Position: Man.Dir. Employed: 2016

Education:

Education:

Education:

Education:

Technical High School, Mechanical Engineering

Klaipeda University , Linguistic studies Lithuanian and Swedish

Business Economics, School of Economics, Gothenburg

Construction Engineer

Technical High School, Electrical Engineering

Previous experience:

Previous experience:

Previous experience:

Previous experience:

Production Manager Stece AB

Insurance Consultant

Man.Dir. Atteviks Lastvagnar

Site Manager Holmgrens Bil AB

Man.Dir. Be-Ge Lastbilar AB

Sales Manager Johanssons Bil AB

Man.Dir. Oskarshamns Frakt

Södracell Mönsterås

Site Manager Press & Plåt Formteknik AB

Man.Dir. UAB Beja Project Coordinator UAB Baltic Business Center Site Man. Dep.Man. from 1999

Project Leader NCC Fastigheter Project Engineer Architectural office

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-GeFöretagen Industri AB Be-Ge AB Be-Ge Industri AB develops, manufactures and markets fixed and suspension driver seats, passenger seats, surveillance and office chairs and accessories for these products. Customer-unique products are being developed on commission for OEM-customers.

Our reputed products are well known among the drivers of commercial vehicles, trucks and buses, forest and contract vehicles and industrial trucks as well as well as many others who ”sit” at their place of work. Further examples of work groups using our seat products with the trademarks ”Be-Ge”, ”Sverigestolen” (the Sweden Chair) and ”Ullmanstolen” (the Ullman Chair) are process operators, personnel in surveillance centres and offices, train drivers and vessel operators.

Summary of the Financial Year The financial year has shown continued growth in most of the company's business areas and customer segments.

Customers developing, manufacturing and selling trucks, industrial forklifts and construction and forestry machines have gained market shares during the strong economy, which has positively affected the demand for the company's products.

14

The company notices a temporary decline in market shares for Scandinavian city buses, while significant market growth is taking place in the UK. Using comfortenhancing product development as well as increased marketing and sales efforts, it is expected that city bus operators will again actively specify Be-Ge seats, in front of standard seats, when procuring new bus fleets.

The Be-Ge Industri retailers in Europe and the rest of the world continued to develop positively in terms of sales to after-market projects and small and medium-sized OEM customers, who value the local presence and service.

This year's major product innovation is Be-Ge 3700F.19 Heavy Duty, which features a unique suspension system.

The system is adapted for personal weights between 55 and 210 kilogrammes and a 180mm suspension path to name a few of its unique features.

The company expects continued growth in its various business areas. To secure the future need for assembly capacity in Oskarshamn, the company has acquired an adjacent industrial property with a total area of 3,600 square metres.

ADDRESS: Box 912, SE 572 29 Oskarshamn, Sweden VISITING ADDRESS: Gjutaregatan 4, Oskarshamn, Sweden TEL: +46 491-76 18 00

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Sales per geographical market

%

MSEK 200

Rest of the world

90

175

3%

150 125

Sweden 64 %

10

Turnover and Number of Employees MSEK 270

160

240

140

210

120

180

100

150

80

120

60

90

40

60

20

30 14/15 15/16 16/17 17/18 = Men

20 15 10 5 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 Bal. sheeet tot

180

25

20

Inner cycle = Previous year

incl. inter-company sales

30

60

30

50 25

NUMBER

35

70

40

75

MSEK

80

50

100

EU 33 %

Investments

Balance Sheet Total, Equity and Solidity

Thereof adjust. equity

– = Solidity

Result after Net Financial Items MSEK 35 30

Research and Development Costs MSEK

%

8

7

7

25

6

6

5

5

20

4

4

15

3

3

10 5 14/15 15/16 16/17 17/18

2

2

1

1 14/15 15/16 16/17 17/18 – = % of turnover

= Women– = Turnover

Proportion of the Group’s external invoicing: 25%

The total invoicing amounts to SEK 289.0 million (268.7) with a profit after net financial items of SEK 36.0 million (33.3). The equity ratio at year-end is 80% (79).

Elmia Truck, InnoTrans (Berlin), IAA (Hannover), Transport & Logistics (Gothenburg) and Passenger Transports (Stockholm) are considered as the largest trade fairs of the year. A number of minor activities are also planned.

Expected Development 2018-2019

The goal is still to secure more contracts from small and medium-sized OEM customers.

The economic outlook in the world, Europe and especially Sweden, remains relatively positive, but there are some warning indications that are similar to the situation before the financial crisis 2008-2009.

Still, Be-Ge Industri AB has great faith in gaining market shares for new and existing customers, as well as predicting a modest growth in many of its industry sectors. The management is budgeting and planning for continued growth.

Further focus is needed on additional measures both in marketing and sales to increase capacity within the supply chain and the assembly department.

It is vital that the company activates necessary price adjustments to all customers in order to compensate for the significant cost increases for raw materials, that burdened the company's finances in 2017. Further cost increases are imminent in the financial year 2018-2019.

The creativity in product development will be further stimulated and intensified. A new internal product development programme of considerable extent will be activated.

Europe is the company's home market, yet significant sales are taking place in the North American and Australian markets.

Be-Ge Industri AB acquired, as per April 30, 2018, Frapett AB in Mönsterås. Frapett AB develops, manufactures and sells office chairs, also saddle and support chairs and sound absorbers for offices and public environment. The acquisition provides a broader customer and product base, which will complement existing operations within Be-Ge Industri AB's segment of office and surveillance chairs.

FAX: +46 491-819 00 E-MAIL: info@be-ge.se WEBSITE: www.be-ge.com CIN: 556156-3643 DOMICILE: Oskarshamn, Sweden

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge Jany A/SAB Be-Ge Företagen Be-Ge Jany A/S develops, manufactures and markets passenger seats, accessories and equipment for mini buses, vans and special vehicles. The company is specialised and holds a leading position in the development of M1 approved and certified seats and bespoke specially adapted products of a high quality for vehicles used in the transportation of disabled people and for ambulances, police and military vehicles.

Continuous investments in testing methods and equipment, new technology and product development have brought the company to a leading position within its sector.

All tests and certifications of seats and equipment in fully built vehicles are carried out in the in-house test plant in Frøstrup.

The company is responsible for the marketing of Be-Ge Industri AB's product range of driver seats and office chairs in Denmark.

Summary of the Financial Year The year began as expected, with stable demand and growth. Sales declined slightly in the last months and the year ended on the same level as the previous financial year.

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Be-Ge Jany A/S has recently launched several new products. Among others Jany Police, which is specially developed for policemen wearing a lot of extra equipment at call-outs. The Jany 805 Police is a special version that provides high comfort and extra space for e.g. safety vests and it is possible to wear a helmet during the ride because the headrest is removable. The seat has been tested and approved according to ECER-14/07.

Jany 60 is a new customer-designed seat for ambulances and meets the requirements of the AM1788 Ambulance Directive. The seat has a 3-point belt and can be delivered in non-seamed fabrics, which is an advantage in ambulances where bacterial control and cleaning of the seats are paramount.

Be-Ge Jany's seats have been tested and approved for VW Crafter and Peugeot Expert through collaboration with TÛV Rheinland and UTAC. This ensures that the company now has approvals for a wide range of car models.

During the financial year, Be-Ge Jany A/S has invested in a new welding robot to be at the forefront of new production technology, enabling productivity to be increased and continuing to deliver high-quality products.

ADDRESS: Vestergade 63, DK 7741 Frøstrup, Denmark VISITING ADDRESS: Vestergade 63, Frøstrup, Denmark TEL: +45 96556700

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Sales by Geographical Market Rest of the World 2%

%

Rest of EU 56 %

90

35

80

30

70

5

60

4

30

MSEK 120

35

100

30

80

25 20 15 10

= Men

= Women

MSEK 10

Research and Development Costs MSEK

%

3,5

7

8

3,0

6

7

2,5

5

2,0

4

1,5

3

1,0

2

0,5

1

9

6 5

40

3

14/15 15/16 16/17 17/18

Thereof adjust..equity – = Solidity

Result after Net Financial Items

60

20

5

14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18

Turnover and Number of Employees

40

1

10

Bal. sheeet tot

45

2

20

5

NUMBER

3

40

15

Inner circle = Previous year

6

50

20 10

incl. inter-company sales

MSEK

MSEK 40

25 Scandinavia 42 %

Investments

Balance Sheet Total, Equity and Solidity

4 2 1 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 – = % of turnover

– = Turnover

Proportion of the Group’s external invoicing: 5%

The total invoicing amounts to SEK 67.2 million (64.0) with a profit after net financial items of SEK 7.3 million (7.8) The equity ratio at year-end is 81% (81).

There will be further focus on implementing Lean Methods in administration, among others by introduction of 5S thinking in all processes. Thus, the company continues to streamline and increase productivity.

Expected Development 2018-2019

In the upcoming financial year Be-Ge Jany A /S looks forward to welcome more customers to Frøstrup. Working together while testing products in the test centre will strengthen the joint cooperation.

Be-Ge Jany A/S estimates that the demand for the company´s products will increase during the financial year 2018-2019.

The company's new products, including Jany 805 Police and Jany 60 will be featured at this year's fairs, among others Rettmobil in Fulda and IAA in Hanover.

The sales organisation has been strengthened during the financial year 2017-2018 and Be-Ge Jany A/S are eager to provide excellent service and good advice to their customers in the year to come.

During the 2018-2019 financial year, the new Mercedes Sprinter will be launched and the company will pay particular attention to getting all seats and accessories tested and approved. All permits are available online on the Be-Ge Jany website, where you can see seats and floor systems approved according to ECER 14/07, which are the latest EU regulations.

FAX: +45 97991621 E-MAIL: info@jany.dk WEBSITE: www.jany.dk CIN: 51 61 73 12 DOMICILE:

Frøstrup, Thisted Municipality, Denmak

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ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge Savas SeatingAB B.V. Be-Ge Fรถretagen Be-Ge Savas Seating B.V. has been a Be-Ge company since 2014, having previously been one of the oldest independent distributors of the BE-GE brand in Central Europe.

Well-trained staff provide customised seat solutions and and carry out the installation of Savas products according to the customer's requirements. The company's goal is to find a unique seat solution for every need.

Be-Ge Savas Seating B.V. in the Netherlands, together with the subsidiaries Be-Ge Seating GmbH in Germany and Be-Ge Savas Seating N.V. in Belgium, represents Be-Ge Seating Division in each country respectively as well as in France. With the focus on being Be-Ge Seating Division's representative in Central Europe, the customers are offered service in their local language and have local presence. Be-Ge Savas sells and represents the Be-Ge brands BE-GE, SAVAS, JANY, Sverigestolen (the Sweden Chair) and Ullmanstolen (the UllmanChair).

Maintenance and installation can also be provided at the customer's location.

The Savas companies are centralised and coordinated from Be-Ge Savas Seating B.V's facility located in Zaltbommel along A2, the busiest motorway in the Netherlands.

The plant covers approximately 2,000 square metres and offers installation service, maintenance and repair as well as assistance from a complete spare parts warehouse.

18

Summary of the Financial Year In order to improve profitability, this year's goal has been to stabilise and concentrate the operations, resulting in lower sales compared to the previous year.

Be-Ge Savas Seating B.Vs subsidiaries in Belgium and Germany have been successfully transformed to professional sales offices.The result of this centralisation is that the company's expertise is secured and available in real time. This creates stability and quality in relation to the company's customers.

During the financial year, the company has worked to improve its quality and performance and to raise the service levels.

ADDRESS: Postbus 2112, 5300 CC, Zaltbommel, NL VISITING ADDRESS: Van Voodenpark 24, Zaltbommel, NL TEL: +31 418-515322

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Rest of Europe 27 %

% 90

70

80

60

70

5

60

4

50

40

40

30

30

20

Belgium 10 %

20

10

10

Inner circle = Previous year

6

3 2 1 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 Bal. sheeet tot

Thereof adjust. equity

Turnover and Number of Employees NUMBER

MSEK

MSEK 80

50

The Netherlands 55 %

Germany 8 %

Investments

Balance Sheet Total, Equity and Solidity

Sales by Geographical Market

incl. inter-company sales

70

MSEK 120

60

Result after Net Financial Items MSEK 6 5

50

100

4

40

80

2

30 20 30 20

3

60

1

40

-1

0 -2

20

10

-3 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 = Men

= Women

– = Solidity

– = Turnover

Proportion of the Group’s external invoicing: 6%

Order backlog at year-end amounted to EUR 2.7 million.

Sales for the year are divided into the following customer categories: End customers: 49% OEM: 27% Dealers: 17% Importers: 7% The total invoicing amounts to SEK 71.8 million (90.5) with a profit after net financial items of SEK 2.9 million (2.8) The equity ratio at year-end is 44% (36).

Expected Development 2018 - 2019 The company's focus in the coming financial year will be to further strengthen the cooperation with customers in different projects and to build long term business relationships. Targeted efforts will be made towards customers with volume potential in order to achieve a better balance between one-piece and serial production.

In addition to efforts to strengthen customer relationships, the company will focus purposefully on maintenance and repair operations. This will be the target in all market segments where the company is active, especially within public transport in the Netherlands and abroad.

A further goal is to increase sales of Be-Ge Seating Division's entire high quality and unique product line, including the M1-approved Jany seats, surveillance seats and office chairs.

The company has a good order backlog, a central location in Europe with sales offices in several European countries and service facilities of its own. In combination with competent personnel, a broad product range and close cooperation with the Be-Ge Group, this makes Be-Ge Savas Seating deeply confident in the future. For the year to come Be-Ge Savas Seating is budgeting a sales growth of 3.5%. The company works continuously to improve the profitability.

FAX: +31 418-515096 E-MAIL: info@savas.com WEBSITE: www.savas.com CIN: 110 25489 DOMICILE: Zaltbommel, NL

19

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge UK AB Ltd Be-GeSeating Företagen Established in 2007 Be-Ge Seating UK is responsible for the whole of the Be-Ge Group’s Seating products in the UK and Irish market. Working from it’s premises located in the centre of the UK it provides sales, service and aftersales care of our products with a fully stocked warehouse and workshop facilities along with mobile vans visiting customer premises.

Be-Ge Seating UK markets and distributes our full range of the Be-Ge Group’s driver seats, office chairs and passenger seats within the UK market. The main sectors for our driver seats you will find in UK buses, rail, forestry, construction and specialist markets such as aircraft simulators. The office chairs are sold into utility power stations, control rooms and CCTV monitoring stations. Passenger seats are supplied mainly to the emergency services and construction industry, selling into ambulance, police, fire and welfare vehicles and we are also fitted into a wide range of disabled access vehicles.

Summary of the Financial Year Brexit has created a number of challenges from all areas of UK business. As we look towards the Government for answers how we move forward with our relationship with the EU, we are operating in very uncertain times affecting buying decisions and investments.

Our UK business is spread across many sectors of the automotive vehicle market which has seen a “rollercoaster” ride as vehicle manufacturers grow and decline, our main task was to keep ahead of these curves and invest resources into the upward trends to maximise our own growth.

We have seen marginal growth across all sectors in Welfare, Ambulance, Wheelchair/Taxi & Public Transport and the Police market has exceeded our expectations as we are now the preferred supplier in UK Police Cells vans.

Uncertainty about the UK economy has also seen a decline in business investment in new vehicles and has companies hold onto their existing vehicle longer we have seen a growth in our Aftermarket business selling Spare parts, Repairs and Refurbishments into older vehicle stock.

20

ADDRESS: Unit 3 The Fulcrum, Lows Lane, Stanton, Derbyshire, DE7 4QU, UK TEL: +44 1159898750 FAX: +44 844 800 0559

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Sales by Geographical Market

Balance Sheet Total, Equity and Solidity %

MSEK

Rest of Europe 8 %

80

8

70

7

60

6

50

5

40

4

30

3 2 1

Inner circle = Previous year

MSEK

90

9

UK 92 %

Investments

0,7 0,6 0,5 0,4 0,3

20

0,2

10

0,1 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 Bal. sheeet tot

Thereof adjust. equity

Turnover and Number of Employees incl. inter-company sales

– = Solidity

Result after Net Financial Items

50 MSEK

MSEK

9

45

8

40

0,9

7

35

6

30

5

25

4

20

3

15

2

10

1

5

NUMBER

0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1

14/15 15/16 16/17 17/18 = Men

14/15 15/16 16/17 17/18

= Women – =Turnover

Proportion of the Group’s external invoicing: 2%

Our company finished its financial year with our highest result since being established with a 5% growth on last year. Our profit has increased mainly due to sales in more specialised sectors.

Total invoicing amounts to SEK 20.5 million (19.6) with a profit after financial items of SEK 0.8 million (0.1). The equity ratio at year-end is 33% (26).

Expected Development 2018 - 2019 We expect the trend of business uncertainty and under investment to continue as we approach the deadline for leaving the EU March 2019. We see our business mainly focusing on the short-term natural vehicle replacement and aftermarket business to see us through these unique times.

Besides continued development and growth of our existing traditional markets, we are also entering into new areas of business to lay out the foundations for future growth. Current key areas of interest to vehicle fleet users are mainly focussed around their employee’s welfare and safety. We aim to capitalise on this by offering our seats

with increased weight capacity and ergonomic comfort mainly within the public transport sectors.

Our factories continue to develop new and innovative products especially in the niche vehicle sectors and testing on new vehicles prior to launch gives us a competitive edge. Vehicle Type Approval is also a challenging area for the UK automotive sector and we are in the enviable position to offer fully approved seating solutions and the expertise to guide companies through this process.

We plan to increase our sales team during this financial year, initially by employing a sales co-ordinator/marketing person and during the second half we also aim to employ a sector based expert within the Public Transport sector.

We are participating at major exhibitions within the Blue Light emergency and Public Transport industries during this year and we will also have our seats in completed vehicles at leading Automotive exhibitions throughout the year.

E-MAIL sales@be-ge.co.uk WEBSITE: www.be-ge.co.uk CIN: 06026206 DOMICILE: Derbyshire, UK

21

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge Stece ABAB Be-Ge Företagen Be-Ge Stece AB is one of the leading manufacturers of components for trucks, commercial vehicles and private cars, also other consumer products such as heating and electronic appliances and white goods. The company's production comprises of sheet metal details and production tools. All kinds of sheet metal between 0.3 and 6 mm and bandwidth up to 1,000 mm can be operated with up to 800 tonnes pressure in eccentric and hydraulic presses. The company has in-house capacity for hardening, normalisation and electrolytic surface treatment. Both manual and automatic welding can be offered. Details are assembled to finished products, packaged, stocked and delivered according to customer requirements.

Be-Ge Stece AB takes part in the customer’s projects from the first idea with suggestions, prototypes and material choice, including development and production of tools, and assists the customer up to finished product and series delivery. The company has broad material technical know-how and genuine design and tool manufacturing competence. The company is certified in accordance with quality and environment managing systems ISO 9001 and ISO 14001 and the quality system ISO/TS 16949 for the vehicle industry.

22

Summary of the Financial Year The financial year is characterised by upturn in all segments in which the company operates.

Be-Ge Stece AB has gained new business from all major customers as well as increasing volumes in the existing range. The temporary decline in sales in the previous year has thus been recovered and turnover is approaching SEK 100 million a year.

The company's production processes have worked efficiently and with high availability throughout the year. However, there have been problems with some subcontractors failing to meet the pace and demand of the company's customers, resulting in delivery precision not quite reaching the previous year's level of 100%.

Thanks to skilled and experienced employees, the company remains to keep the quality at an error level of near zero.

Be-Ge Stece AB has during this financial year accomplished an approved third-party certification of the company's management system according to ISO 9001/14001, also ISO / TS 16949, and is now implementing a certification according to IATF 16494.

ADDRESS: Box 502, SE 383 25 Mönsterås, Sweden VISITING ADDRESS: Industrigatan, Mönsterås, Sweden TEL: +46 499 160 00

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Investments

Balance Sheet Total, Equity and Solidity

Sales per product segment

%

MSEK

Other Industry 9%

90

80

80

70

Consumer products 8 %

70

60

60

50 Cars 15 %

50

40 Trucks 68 %

40

30

30

20

20

10

10

Inner circle = Previous year

MSEK 10 9 8 7 6 5 4 3 2 1 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 Bal. sheeet tot

Thereof adjust. equity

Turnover and Number of Employees NUMBER

incl. inter-company sales

MSEK

90

180

80

160

70

140

60

120

50

100

40

80

30

60

20

40

10

20

Result after Net Financial Items MSEK 16 14 12 10 8 6 4 2 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 = Men

– = Solidity

= Women – = Turnover

Proportion of the Group’s external invoicing: 8%

Continuously rising raw material costs combined with the difficulty to recompensate through price increases to customers have reduced the company's margins. In comparison with its line of industry, the company holds a good position in terms of profitability Total invoicing amounts to SEK 91.1 million (81.9) with a profit after financial items of SEK 7.4 milion (6.7). The equity ratio at year-end is 76% (8.,5).

Expected Development 2018-2019 Be-Ge Stece AB estimates that the strong economic cycle will last during the coming financial year, despite the uncertainty and concern that it will not remain through the whole of 2019. There are indications that free trade will be limited by additional import duties between the EU and other regions / continents, which is not positive for Be-Ge Stece AB. The Swedish currency has weakened and the company believes the exchange rate will continue to decline, mainly against the Euro, thus adding further costs to the already rising base prices on metals. The company

expects to receive new business at the same levels as last year and calculates with an organic growth of 4-5% during the upcoming year.

Mönsterås Pressdetaljer AB was acquired at the end of the financial year 2017-2018, which will generate a turnover of SEK 15 million. The acquisition means that Be-Ge Stece AB's capacity of pressed sheet metal parts increases. Additionally, the company can now also offer automated pipe bending.

Be-Ge Stece AB will continue to invest in automation solutions and robotisation. The company is working on continuous improvements such as streamlining the production processes to further enhance competitiveness.

The efforts are well supported by the staff's deep commitment and readiness to provide excellent service.

Be-Ge Stece AB looks forward to the coming financial year with the intention to remain the first choice for customers needing press tools, advanced sheet metal parts, pipe bending including welding, heat and surface treatment.

FAX: +46 499 16180 E-MAIL: info@stece.se WEBSITE: www.stece.se CIN: 556048-2746 DOMICILE: Mönsterås, Sweden

23

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge AB Be-GePlåtindustri Företagen AB Be-Ge Plåtindustri AB manufactures advanced sheet metal components for the mechanical industry. Sheet metal is processed in the interval of 0.5-25 mm. After raw material preparation in modern laser and nibbling machines, the components are further processed by edge bending or hydraulic or eccentric pressing. A large proportion of the products are robot welded, or manually by the company’s licensed welders. The company also provides surface treatment, and part or complete assembly when required. Be-Ge Plåtindustri AB manufactures advanced pressed and deep drawn products for several customers. Another niche of the activity is rolling and roll-forming of complex cones and cylinders for customers in a number of fields. Be-Ge Plåtindustri AB is an innovative partner, who gives the customers support and cost-saving suggestions during the product development phase.

The production consists of:

• Material department with three laser cutting machines, one with an integrated punch

• Four CNC-controlled press brakes for efficient bending of sheet metal components

• Hydraulic and eccentric presses for deep drawing and tool forming

• Equipment for rolling and roll-forming

24

• Four robotic welding cells, one with double robots • Length and circular welding equipment • Manual and licensed welders • Assembly department

Summary of the Financial Year Even before the start of the financial year, there were obvious signs of increased demand from several of the company's customers. These signals turned out to be highly reliable and the rate of invoicing increased by 28% compared to previous year. This large increase has been managed through a proactive inventory strategy, the employees' high flexibility and a greater degree of rationalisation. The strong volume increase is a mix of new products and increased volumes of existing products.

The intensive marketing efforts have thus yielded results.

Another global company to be added to the customer list is a clear success and the current production items may expand more in the future.

As part of the long-term investment strategy, the company has invested in two new welding robots

ADDRESS: Box 518, SE 572 25 Oskarshamn, Sweden VISITING ADDRESS: Södra Fabriksgatan 4, Oskarshamn, Sweden TEL: +46 491 76 68 80

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Sales per product segment

MSEK

%

80

90

Other products 23 %

4

60

50

3

50

40

40

30

2

30

20

20

10

Seats 23 %

5

70

60

Construction equipment 46 %

MSEK

80

70

Pumps 8 %

1

10

14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18

Inner circle = Previous year Bal. sheeet tot

Thereof adjust. equity

incl. inter-company sales

MSEK

90

90

80

80

70

70

60

60

50

50

40

40

30

30

20

20

10

10

MSEK

10 9 8 7 6 5 4 3 2 1 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 = Men

– = Solidity

Result after Net Financial Items

Turnover and Number of Employees NUMBER

Investments

Balance Sheet Total, Equity and Solidity

= Women – = Turnover

Proportion of the Group’s external invoicing: 6%

equipped with the latest welding technology and providing very good results. One of the cells consists of two robots, which radically cuts the production time for items needing a large proportion of welding. The company is working intensively to market this to customers, seeing that the competitiveness surely will be strengthened for items with a large share of welding. Investment has also been made in a feeder for welding nuts in order to further streamline the production.

Total invoicing amounts to SEK 80.7 million (62.9) with a profit after financial items of SEK 8.2 million (3.3). The equity ratio at year-end is 76% (76).

Expected Development 2018-2019

The company will also invest in a cone roller for small cones as a result of an individual large order. Moreover this investment leads to the opening of new product ranges, where Be-Ge Plåtindustri AB has not previously been able to participate in the quotation process.

The successful efforts to develop the robot welding will continue unabated.

Be-Ge Plåtindustri AB will continue the efforts to market the company's products to many more customers within segments where the company is already active, yet to find new business opportunities in new markets. Part of this work will be the participation in the 2018 Elmia Subcontractor trade fair, which over the years has given the company a number of new customers,

Be-Ge Plåtindustri AB estimates that in the prevailing economic growth and order situation, the significantly higher rate of invoicing will last and probably increase slightly in the coming financial year.

Several major procurements will be carried out during the coming year. The information currently available is that start-up of production is planned to take place in 2020.

FAX: +46 491 76 68 90 E-MAIL: plat@be-ge.se WEBSITE: www.be-ge.se CIN: 556223-1430 DOMICIFLE: Oskarshamn, Sweden

25

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge Baltic UAB Be-Ge Fรถretagen AB Be-Ge Baltic UAB, established in 1995, has industrial sewing as core business, also partial and final assembly of subcontracted components. The company carries out sewing of upholstery for seats and chairs for customers within the manufacturing areas vehicle, office, conference and surveillance seats, wheelchairs and other textile applications, focusing on quality, flexibility, delivery accuracy and open communication. Sewing, upholstery and assembly are supplemented as required with foam, wood, plywood and steel components from suppliers in the Baltic countries, where we are also leading suppliers of fabric with our own production and logistic facilities.

The company is certified in accordance with ISO 9001 and ISO 14001 since 2003 and is using lean-manufacturing methods in the daily work.

Be-Ge Baltic UAB has a geographically positive location in Klaipeda, close to the most northern ice-free harbour in the Baltic countries. Klaipeda is the only Lithuanian harbour and an important transport joint, where regular shipping lines meet modern motorways. There are daily ferry links with e.g. Sweden (Karlshamn) and Germany

26

(Kiel, Sassnitz). The company is situated only 30 km away from the nearest international airport in Palanga..

Summary of the Financial Year The Financial year 2017-2018 is characterised by stable order intake as well as niche and developing projects.

In addition our sales have increased for the sixth consecutive year.

The year is featured by active training and improvement activities focusing on efficiency and quality. The routine of having short daily morning meetings at all levels in the company has resulted in improved planning. The meetings also include follow-ups and measures of quality and safety issues by consistent and structured key figures in the terms of sales, delivery precision, quality and safety. This provides a good overview and means that the company can take action by correcting early-phase imbalances of all processes and production stages.

Be-Ge Baltic UAB has grown to 95 employees at present time. The company's management has been expanded with a newly recruited quality manager, also

ADDRESS: Pramons g. 27 LT-94103 KLAIPEDA, Lithuania TEL: +370 46 300 124

FAX: +370 46 300 125

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

MSEK

Rest of Europe 2 %

%

40

18

30

70

16

25

60

14 12

50

10

40

15

Inner circle = Previous year

20

80

20 Scandinavia 98 %

MSEK

90

35

8

30

10

20

5

10

6 4 2 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 Bal. sheeet tot

Thereof adjust. equity

Turnover and Number of Employees NUMBER

Investments

Balance Sheet Total, Equity and Solidity

Sales by Geographical Market

incl. inter-company sales

90

Result after Net Financial Items MSEK

MSEK

9

35

80

8

30

70 60

25

50

20

40

7 6 5 4

15

30 20

10

10

5

3 2 1

14/15 15/16 16/17 17/18 = Men

= Women

– = Solidity

14/15 15/16 16/17 17/18

– = Turnover

Proportion of the Group’s external invoicing: 1%

a new position as HR manager. The new appointments contribute to an even stronger and more structured organisation.

Be-Ge Baltic UAB will focus on getting a FSC certification to further contribute to environmental work and social conditions.

The company continues the efforts on, partially EUfunded, staff training to further develop competences and skills in production planning, process thinking and staff interaction.

To prepare for new challenges, the management team will be strengthened on the marketing side as well as in production and technology. Continued investments in staff and the establishment of new workplaces will enable the company to meet growing demand and up and coming new projects. The company is on the right track in the transition process of the new updated ISO 9001 and 14001. Re-certification will take place in the coming months.

Total invoicing amounts to SEK 22.3 million (20.6) with a profit after financial items of SEK 1.3 million (1.8). The equity ratio at year-end is 42% (38).

Expected development 2018-2019 Most of the company's customers are notifying an increased demand, yet the company will continue to focus on new customers and new export markets. A continued sales increase of about 10% for the financial year 20182019 is budgeted.

Be-Ge Baltic UAB will continue to focus on training and development of the staff, especially collaboration between departments and enhancing the corporate culture to create even better conditions for customer success.

A number of new projects will be started, with both new and existing customers, in the coming financial year.

E-MAIL: baltic@be-ge.se WEBSITE: www.be-ge.se CIN: 141195074 DOMICILE: Klaipeda, Lithuania

27

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge Företagen Lackering AB Be-Ge AB The company's operations are comprised of vehicle and industrial painting, plastics repairs and corrosion protection of vehicles in private as well as commercial

The company is a member of The Swedish Association

sectors.

accordance with ISO 9001:2008.

The main part of the turnover within in the automotive

of Auto Dealers and Service Shops and the industrial department's operating system is third-party certified in

segment consists of repairs and painting of damaged

Summary of the Financial Year

passenger and transport vehicles, mainly with insurance

The demand for the company's painting services has been

companies as buyers. The materials used are water-

stable for several years, but a declining trend can now

dispersible paint and two-component lacquer.

been noticed in the segment of anticorrosion treatment.

Demand for automotive painting is slightly decreasing

The industrial painting is located in a separate building with capacity for wet painting of all types of industrial components, foremost plastic components. There is even capacity for complete trucks, buses and boats and similar large objects.

The staff's expertise and experience form the basis for the good quality and high delivery capability offered by the company, even in the face of a very variable demand for automotive and industrial coating.

due to the fact that more customers choose to centralise their centres for insurance claim to the larger towns of the region. The proportion of plastics repairs is still increasing.

The industrial painting segment has worked with transition to new products and volume changes for the company's largest customer. The transition that has been arduous for the staff, and also laborious for the company's results. The work force of the Industrial department has been reduced over the year to match demand. After

28

ADDRESS: Inkörningsvägen 3, SE 572 36 Oskarshamn, Sweden VISITING ADDRESS: Inkörningsvägen 3, V. Industriområdet, Oskarshamn

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Sales per product segment

%

MSEK 20

Corrosion & Plastics repairs 3% Vehicle paintwork 24 %

18

15,0

80

16

12,5

70

14

60

10,0

50

10

7,5

40

8

Industrial painting 73 %

MSEK

90

12

30

6

5,0

20

4

2,5

10

2

14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18

Inner circle = Previous year Bal. sheeet tot

Thereof adjust. equity

incl. inter-company sales

MSEK 3

MSEK

35

35

30

30

25

25

20

20

15

15

10

10

5

5

2 1

-1 -2 -3

14/15 15/16 16/17 17/18 = Men

– = Solidity

Result after Net Financial Items

Turnover and Number of Employees NUMBER

Investments

Balance Sheet Total, Equity and Solidity

14/15 15/16 16/17 17/18

= Women – = Turnover

Proportion of the Group’s external invoicing: 2%

signing a new agreement with the customer, the company

coming financial year. Turnover will be lower than in 2017-

now sees that a balance between income and expenses

2018 after adjustments have been taken to lower volumes

has been achieved.

of the industrial department. .

Delivery and quality standards have improved during

The company continues to increase the existing

the year. Precision in delivery is now at levels up to 100

customer delight even more and also to focus on getting

percent and defects to customers have gone down

more insurance claim centres to utilize the company's

towards zero percent. This result means improved

capacity and vehicle skills. Further development of the

efficiency with less remedial work in the internal

working processes is still a main ambition of the vehicle

processes. Be-Ge Lackering AB has also re-certified the

department .

management system of the industrial department and now holds an ISO9001: 2015 certificate.

Be-Ge Lackering AB will continue its efforts to break the trend of increasing prices for materials and supplies

Total invoicing amounts to SEK 23.1 million (28.8) with a

by better benchmarking of the market. The industrial

result after financial items of SEK -1.8 million (-2.9). The

department will proceed to process the local market

equity ratio at year-end is 62% (54).

to find more customers in need of painted industrial components and to market the company's capacity of

Expected development 2018-2019

painting large objects.

Be-Ge Lackering AB expects the demand for both automotive and industrial painting to be stable during the

TEL: +46 491 45 46 30 FAX: +46 491 770 05 E-MAIL: info.lack@be-ge.se WEBSITE: www.be-ge.se CIN: 556132-8625 DOMICILE: Oskarshamn, Sweden

29

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-GeFöretagen Lastbilar AB Be-Ge AB Be-Ge has been representing Scania trucks since 1941 and is the world’s oldest, privately owned retailer for Scania.

that demand has slightly gone down as stated above. The result is that Be-Ge Lastbilar AB still has the confidence to be the leader of its market areas.

Be-Ge Lastbilar AB is responsible for sales and service of Scania trucks and buses within the market region Oskarshamn / Mönsterås / Hultsfred / Vetlanda / Sävsjö and Visby. The activities are carried out from its own sites in Oskarshamn, Vetlanda, Hultsfred and Visby.

During the financial year the company acquired Visby Tunga Fordon AB and a new bus workshop was opened in Oskarshamn. Visby Tunga Fordon AB was taken over in the summer 2017 and was fully incorporated at the end of the year. The business has a turnover of SEK 50 million and has 20 employees. The bus workshop opened in BeGe Lastbilar AB's recently acquired bus depot, which is rented out to a local bus operator. This operation employs three persons. The new operations will provide the company with new markets and continued growth.

Summary of the Financial Year The financial year has been characterised by high demand for new Scania trucks. Demand for the company's services within the workshop sector has declined slightly during the year, mainly due to higher quality of vehicles, higher efficiency utilisation among the hauliers and, to some extent, lack of staff. Be-Ge Lastbilar AB's customers have good demand for their transportation and logistics services. Despite the favourable economic climate, the market is pressed, which affects the company's pricing both on new vehicles and services.

The excellent customer relationships established over the years contribute to continued good sales and good occupancy of the company's workshops, despite the fact

30

ADDRESS: Box 908, SE 572 29 Oskarshamn, Sweden

Building and expanding the service market by sales of new trucks is essential for development and improvment of the company's customer service.

During 2017 a total of 6,198 (5,912 previous year) new trucks over 16 tonnes were registered in Sweden, which is a record. Thereof 2,492 (2,417) were Scania, which is a market share in the whole country of 40.2% (40,9).

A total of 69 (69) new heavy trucks, whereof 47 (47) Scania, were registered within Be-Ge Lastbilar AB's

viSITING ADDRESS: Södra Fabriksgatan 12, Oskarshamn

TEL: +46 491 76 15 00

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

MSEK 180

Other 2 % Spare parts 13 %

% 90

160 140

Service 10 %

120 100 80 Trucks 75 %

60 40

Inner circle = Previous year

MSEK 275 250 225 200 175 150 125 100 75 50 25

80 70 60 50 40 30 20 10 14/15 15/16 16/17 17/18 = Men

70

21

60

18

50

15

40

12

10

9 6 3 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18

Turnover and Number of Employees 90

23

20

Bal. sheeet tot

incl. inter-company sales

MSEK 25

80

30

20

NUMBER

Investments

Balance Sheet Total, Equity and Solidity

Sales per product segment

Thereof adjust. equity – = Solidity

Result after Net Financial Items MSEK 10 9 8

Number of delivered vehicles 140 130 120 110 100 90 80

7 6 5

70 60 50 40 30 20 10

4 3 2 1 14/15 15/16 16/17 17/18

= Women – = Turnover

14/15 15/16 16/17 17/18 = New trucks

= Used fordon

= New trailors

Proportion of the Group’s external invoicing: 22%

market area during 2017, which is a market share of 68.1% (68.1). The facilities in Visby, separately counted 2017, registered 14 new heavy trucks, thereof 11 Scania, which is a market share of 78.8%. Be-Ge Lastbilar AB thus continues to hold the leadership of the market also 2017.

Marketing activities are the key to building the company's relationships with our customers and we were well attended during the year and worthwhile events has been held.

Total invoicing amounts to SEK 234.0 million (194.8) with a profit after financial items of SEK 7.1 million (8.8). The equity ratio at year-end is 61% (78).

Expected development 2018–2019 The trend for the coming financial year looks positive with a stable prosperity for the benefit of the company's local operations. Scania in Sweden estimates the total market for 2018 slightly lower than the record year 2017 but still high with 6,000 registered heavy vehicles. The New Generation Scania, with multiple fuel options for higher sustainability, has demonstrated continued high quality and good fuel economy. More fuel-saving solutions,

biofuels such as RME, HVO and Biogas, also diesel and other service, will add to the benefits of the company's customers.

The haulage industry has a continuing need for improved profitability. There is a structural change where transport companies tend to be larger and fewer, which affects BeGe Lastbilar AB and the industry as a whole. The company becomes aware of these structural changes when smaller customers are bought up by larger companies, yet there is also a trend of young forward-looking entrepreneurs trying to find new niches in their particular fields.

Increased competition, fewer customers and lack of skilled labour set additional requirements on Be-Ge Lastbilar AB to find new services and alternative solutions. It is essential to follow the development of the transportation industry and continue to invest in equipment and training.

For the coming financial year the goal of Be-Ge Lastbilar AB is still to achieve improved profitability, higher quality and even better customer satisfaction in order to remain the market leader.

FAX: +46 491 772 30 E-MAIL: info@bil.be-ge.se WEBSITE: www.be-ge.nu CIN 556092-6643 DOMICILE: Oskarshamn, Sweden

31

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Be-Ge AB Be-GePersonbilar Företagen AB Be-Ge Personbilar AB is authorized for the sales and service of Volkswagen, private and transport cars, and Skoda within the market region Oskarshamn / Mönsterås / Hultsfred / Vetlanda / Sävsjö. The company operates in own premises in Oskarshamn and Vetlanda, and are also representatives for Europcar rental cars in these towns.

Summary of the Financial Year During the financial year, Be-Ge Personbilar AB has continued with resource and personnel development work in order to increase the competence and improve the customer service. The organisation has been strengthened and the company's index for customer satisfaction index has improved during the year, so has car sales.

The turnover for the financial year 2017-2018 increased

by SEK 31 million to SEK 230 million. This is the result of higher sales volumes, primarily in passenger cars, but aftermarket sales have also increased. The company market share has improved and is above average in the Swedish marketplace for Volkswagen and Skoda in the Oskarshamn region. It is also now expanding up into

32

Vetlanda, where actions to improve the sales have shown positive effects.

The improvement efforts are on-going in all areas.

The total Swedish market hit record in 2017 and amounted to 379,255 new passenger cars, an increase of 1.9%. Volkswagen's market share during the calendar year was 15.2% (15.5) and Skoda's market share was 4.6% (4.4).

The market for light commercial vehicles amounted to 55,382 vehicles, a new record and an increase of 7.2%.

Volkswagen's Transport Vehicles had a market share of 28.9% (28.6).

Be-Ge Personbilar AB's share of the Oskarshamn / Vetlanda market area became for Volkswagen 19.4% / 5.2%, for Skoda 7.2% / 3,8% and for Volkswagen Transport cars 29.0% / 17.8%.

Total invoicing amounts to SEK 230.6 million (199.6) with a result after financial items of SEK -0.1 million (1,2). The equity ratio at year-end is 30% (41).

ADDRESS: Box 908, SE 572 29 Oskarshamn, Sweden VISITING ADDRESS: Södra Fabriksgatan 12, Oskarshamn TEL: +46 491 76 15 00

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Sales per product segment Europcar 1 % Service 7 % Spare parts 6 %

MSEK

%

45

90

40

80

35

70 60

30

50

25

40

20

30

15

Cars 86 %

20

10

10

5

Inner circle = Previous year

Turnover and Number of Employees incl. inter-company sales

45

230 225

40

200

35

175

30

150

25

125

20

100

15

75

10

50

5

25 14/15 15/16 16/17 17/18 = Men

= Women

MSEK

Thereof adjust. equity

MSEK 9 8 7 6 5 4 3 2 1 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 Bal. sheeet tot

NUMBER

Investments

Balance Sheet Total, Equity and Solidity

– = Solidity

Result after Net Financial Items MSEK

Number of delivered cars NUMBER 900

4

800

3

700

2

600

1

500

-1

400

-2

300

-3

200

-4

100

-5 14/15 15/16 16/17 17/18

– = Turnover

14/15 15/16 16/17 17/18 = Thereof used cars

Proportion of the Group’s external invoicing: 22%

Expected development 2018-2019 The car industry organisation Bil Sweden expects a strong car market also in the coming year with a forecast of 360,000 passenger cars and 54,000 light transport vehicles. The conditions for a good automotive market 2018 are positive, given that the Swedish economy is expected to remain strong. According to Bil Sweden the interest rates appear to remain at low levels, employment and household disposable income are expected to increase.

Be-Ge Personbilar AB's expectations for the coming financial year are based on forecasts from the company's general agents as well as Bil Sweden. The company's objective is to significantly strengthen its position on the market, supported by Volkswagen's and Skoda's attractive product range. Improved sales efforts from a strong sales organisation and a more efficient use of the company's entire organisation and processes will improve the company's results.

Volkswagen's follow-up system, designed to assess the company's actions on the automotive market through market research at the company's customers, creates

additional motivation to achieve maximum customer satisfaction.

Be-Ge Personbilar AB holds a strong and unique position on the markets in Oskarshamn, Vetlanda and surrounding locations and is well known in both business and private sectors.

The automotive market shows an increasing focus on environmentally friendly options. Volkswagen’s product range of gas powered, hybrid and electric vehicles of different sizes is unique and has got a very positive reception from the market.

The range of new fossil-free passenger cars is increasing and Volkswagen is at the forefront of this development.

With the solid vehicle programme from Volkswagen and Skoda, Be-Ge Personbilar AB offers attractive transport solutions for all needs.

The company's well-equipped service centres with competent, well-trained and motivated staff provides a full range of services to ensure a problem-free vehicle ownership.

FAX: +46 491 772 30 E-MAIL: info@bil.be-ge.se WEBSITE: www.be-ge.nu CIN: 556061-4298 DOMICILE: Oskarshamn, Sweden

33

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

The Board of Be-Ge Företagen AB

Erland Persson

Håkan Hjalmarsson

Kjell-Arne Lindbäck

Ingemar Persson

Chairman of the Board

Board Member

Board Member

Board Member

Born 1950

Born 1962

Born 1952

Born 1953

Lives in Borgholm

Lives in Oskarshamn

Lives in Nacka

Lives in Malmö

Group assignments:

Group assignments:

Other assignments:

Group assignments:

Chairman of the Board

Managing Director

Managing Director

Chairman of the Board

Be-Ge Baltic UAB.

Be-Ge Företagen AB

Lesjöfors AB

Be-Ge Fastigheter AB

Board Member

Chairman of the Board

Board Memeber

Be-Ge Stece AB

Lesjöfors AB's subsidiary companies

of all other Be-Ge companies

Board Member

Board Member

of all other Be-Ge companies

Lesjöfors AB

Be-Ge Fastigheter AB

34

Indexator Rotator System AB

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Johan Persson

Rickard Petri

Jan Pettersson

Bo Waldebjer

Board Member

Board Member

Board Member

Board Member

Born 1966

Born 1953

Born 1948

Born 1962

Lives in Oskarshamn

Lives in Växjö

Lives in Oskarshamn

Lives in Mönsterås

Group assignments:

Group assignments::

Group assignments:

Group assignments:

Chairman of the Board

Chairman of the Board

Chairman of the Board

Be-Ge Office AB

Be-Ge Industri AB

Be-Ge Personbilar AB

Managing Direktor and Board Member

Be-Ge Jany A/S

Be-Ge Lastbilar AB

Board Member

Be-Ge Savas Seating B.V.

of all other Be-Ge companies

Be-Ge Seating UK Ltd

Be-Ge Industri AB Be-Ge Seating UK Ltd Be-Ge Jany A/S Be-Ge Savas Seating B.V.

Frapett Produktion AB

Frapett Produktion AB

Other assignments:

Other assignments:

Other assignments:

Other assignments:

Chairman of the Board

Chairman of the Board

Chairman of the Board

M2 Marina AB

Byggnadsaktiebolaget O.G. Ohlsson

MRF Kalmar County

Board Member

Sydostpress AB

Board Member Southern Swedish Chamber of Commerce, Kalmar County

TM Utbildning AB

Deputy Chairman of the Board Gota Media AB Managing Director and Board Member AB Hjalmar Petri

35

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

INCOME STATEMENT (THE GROUP) Amounts in SEK thousands

2017-2018

2016-2017

Net turnover

1 048 095

914 810

199 254

177 912

Operating profit

63 761

57 052

Result after financial items

65 075

56 984

-13 793

-13 698

51 282

43 286

1 748

1 583

Gross profit

Taxes PROFIT FOR THE YEAR Including depreciation of goodwill

BALANCE SHEET (THE GROUP) Amounts in SEK thousands

36

2017-2018

2016-2017

Fixed assets

273 473

220 343

Current assets

381 772

343 645

Equity

453 301

403 628

Provisions

17 798

13 040

Liabilities

184 146

147 320

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Balance Sheet Total, Equity and Solidity %

MSEK 650 600 550 500 450 400 350 300 250 200 150 100 50

90 80 70 60 50 40 30 20 10

Investments excl. goodwill MSEK 60 55 50 45 40 35 30 25 20 15 10 5

14/15 15/16 16/17 17/18 Bal. sheeet tot

Thereof adjust. equity

14/15 15/16 16/17 17/18 – = Solidity

Turnover and Number of Employees NUMBER

incl. inter-company sales

1000

1 000 MSEK 900

900

800

800

700

700

600

600

500

500

400

400

300

300 200

200

100

100

Result after Net Financial Items MSEK 60 50 45 40 35 30 25 20 15 10 5 14/15 15/16 16/17 17/18

14/15 15/16 16/17 17/18 = Men

= Women

– = Turnover

KEY RATIOS (THE GROUP) Amounts in SEK thousands

Profit margin, %

2017-2018

2016-2017

6.2

6.2

Return on active capital, %

13.6

13.3

Return on equity, %

12.0

11.2

Equity ratio, %

69.2

71.6

61 472

47 544

Investments excl. goodwill

DEFINITIONS Profit margin = Profit after net financial items / Invoiced sales Active capital = Balanced sheet total - Zero-interest short-term debts Return on active capital = (Profit after financial items + Financial expenses) / Average active capital Return on active capital = Profit for the year / Average equity Equity = Adjusted equity / Total capital Financial year = The period 1st of May - 30th of April

37

ANNUAL REPORT 2017-2018 - THE BE-GE GROUP

Visby Tunga Fordon AB in Visby, Gotland was aquired 2017

38

The Be-Ge Group acquires Frapett Produktion AB and Mรถnsterรฅs Pressdetaljer AB. The agreement was signed on April 20, 2018 with access on April 30, 2018.

Be-Ge Fรถretagen AB Kรถpmangatan 6 A, 572 30 Oskarshamn, SWEDEN

W W W. B E - G E . S E