Annual Report 2022

Be-Ge in numbers

THE GROUP HAS SEK 684 MILLION IN EQUITY

89 years HAVE PASSED SINCE BE-GE WAS FOUNDED

GROUP TURNOVER SEK

1,379 MILLION

PROFIT AFTER FINANCIAL ITEMS: SEK

89 MILLION

THE PROFIT MARGIN FOR 2022 WAS 6.5%

THE GROUP’S EQUITY/ASSETS RATIO

76.4%

17 COMPANIES ARE INCLUDED IN THE GROUP

BE-GE OPERATES IN 6 COUNTRIES

INVESTMENTS DURING THE YEAR

TOTALLED SEK 51 MILLION

THE GROUP HAS 556 EMPLOYEES, 154 OF WHICH ARE EMPLOYED OUTSIDE OF SWEDEN

22% OF SALES TAKE PLACE OUTSIDE SWEDEN

Message from the owners

We thank our employees for their good work during the past financial year. For Be-Ge and its owners, creating good working environments continues to be important, in order to be an attractive employer.

/The owners through Per-Erik Persson

The Be-Ge Group’s companies

The Be-Ge Group is an international group of companies, and 22% of its direct sales take place in countries outside of Sweden. The business is conducted in 17 separate legal entities in six European countries. The majority of the business is located in Sweden.

The business is organised into three divisions:

- Be-Ge Seating Division

- Be-Ge Component Division

- Be-Ge Vehicle Division.

Denmark

BE-GE SEATING A/S Frøstrup

Great Britain

BE-GE SEATING UK LTD Derbyshire

The Netherlands

BE-GE SEATING B.V. Zaltbommel

Germany

BE-GE SEATING GMBH

Jülich

Sweden

BE-GE FÖRETAGEN AB

parent company of the Group, Oskarshamn.

BE-GE SEATING AB

Oskarshamn

BE-GE PERSONBILAR AB

Oskarshamn

BE-GE LASTBILAR AB

Oskarshamn

BE-GE FORDONSFINANS AB

Oskarshamn

BE-GE FASTIGHETER AB

Oskarshamn

BE-GE LACKERING AB

Oskarshamn

BE-GE PLÅTINDUSTRI AB

Oskarshamn

BE-GE FRAPETT AB

Mönsterås

BE-GE STECE AB

Mönsterås

BE-GE FRYSEN AB

Visby

BE-GE OFFICE AB

Oskarshamn

Lithuania

BE-GE BALTIC UAB

Klaipeda

These have been challenging times, but the Be-Ge Group is strong

At the beginning of the financial year on 1 May 2022, there were concerns about raw material availability, inflation trends, the war in Ukraine, and the continued impact of the pandemic. As the shortened financial year, comprising eight months, is now coming to an end on 31/12/2022, it can be concluded that the period contained many challenges.

Inflation is at levels not seen since the early 1990s. According to analysts, inflation will peak at a level of around 11% at the beginning of 2023, and thereafter decrease again. Energy prices have soared in the second half of 2022, partly due to the war in Ukraine, which has created major problems for gas supply in Europe. In addition, starting at the end of the first half of the year, Sveriges Riksdag (Bank of Sweden) has gradually increased its key interest rate to 3%. Concerns around the world have also weakened the Swedish krona against both the EURO and the US dollar.

The Be-Ge Group’s operations have met the above challenges well, and the profit after financial items for the eight-month period is very satisfactory, at SEK 65,151 thousand. This has been possible thanks to impressive work by all employees within the Be-Ge Group, who through their efforts have ensured that the Group’s customers receive their deliveries. For the last 12-month period, the calendar year of 2022, the profit is SEK 89,135 thousand, compared to SEK 80,572 thousand for the broken financial year of 2021-22. This is the best result for 12 months in the Group’s history.

For Be-Ge Seating Division, which manufactures driver and passenger seats, office chairs and surveillance seats, foreign operations have been poorer than expected. Concerning our operations in England and Denmark, lack of access to vehicles has continued to have a negative impact on the businesses. The Netherlands and Germany have not received the same volume of rail projects as they experienced in the previous year. The Swedish companies, Be-Ge Seating AB and Be-Ge Frapett

AB, have had a significantly better eight-month period compared to the previous year. This is despite the fact that one of Be-Ge Seating AB’s major customers also experienced problems with their supply chains during this period and was forced to stop production and cut down on delivery plans.

Price increases took place on a couple of occasions in 2022, to compensate for increased component prices. This means that the turnover for the division has been “boosted” during the year.

2022 was characterised by high activity in the transport and infrastructure segments. This has meant that companies in the Be-Ge Component Division that manufacture sheet metal components, press components and tools, perform sewing work and provide painting services, have continued to experience high demand. During the year, the division has experienced some problems with the deliveries of raw materials and components, but the situation has gradually improved during the year, and production has been able to continue. Once again this year, demand has, to a certain extent, exceeded our production capacity, and the capacity shortage costs have had a negative impact on the division’s earnings.

Price increases for raw materials have slowed down during the year, and a slight decline in prices can now be discerned. However, the sharply increasing energy prices, combined with a general cost increase, mean that production costs are rising. To address this, price increases have taken place, although full cost compensation has not been received from the division’s customers. The increase in turnover compared to the eightmonth period of the previous year is partly explained by

Ett tudelat verksamhetsår

the price increases that we implemented. Vehicle delivery times remain long, but the situation improved at the end of 2022. Order intake in Be-Ge Vehicle Division, which markets and sells trucks and passenger cars, continued to profit during the year, and order backlogs are at high levels. Deliveries of several new vehicles, combined with a high level of activity in the service market, make the division’s results very good. The eight-month period has exceeded the profit for the full financial year of 2021–22, which consisted of 12 months.

Både Be-Ge Seating Division och Be-Ge Component Division hade en besvärlig start på nya verksamhetsåret. Koncernens fordonsdivision, Be-Ge Vehicle Division, påverkades inte i lika hög grad som de båda övriga divisionerna. Försäljningen av fordon samt verkstadsbeläggningen låg kvar på acceptabla nivåer under de första månaderna.

Liquidity and working capital

The Group’s manufacturing companies have built up buffers in inventories, in order to reduce the effects of the uncertain supply of raw materials and components. This, combined with the increase in purchase prices, means that the inventory values are at a significantly higher level compared to the beginning of the financial year.

Precis innan semestertid började orderingången förbättras något, en trend som ytterligare förstärktes efter sommaren inom samtliga tre divisioner. Under hösten har efterfrågan stärkts alltmer, vilket inneburit att korttidspermitteringarna successivt minskat i omfattning för att fr.o.m. december vara helt avvecklade.

Delayed and difficult-to-plan deliveries of truck chassis to Be-Ge Lastbilar AB have resulted in long delivery times from the companies that produce chassis with bodies. The capital tied up in new chassis is therefore at very high levels compared to what Be-Ge Lastbilar AB is normally forced to finance.

De fyra sista månaderna i koncernens brutna räkenskapsår har präglats av en mycket hög efterfrågan inom samtliga verksamhetsområden. För mars månad har koncernen levererat ett månadsresultat som är det bästa i historien.

The increase in inventories, including chassis, together with investments, has resulted in the Group’s liquidity decreasing from SEK 164,854 thousand to SEK 111,145 thousand. However, liquidity remains very good, and the Be-Ge Group continues to be unleveraged.

Den mycket starka återhämtningen under andra halvan av räkenskapsåret, gör att både omsättning och resultat för helåret är tillbaka på nivåer som gällde innan utbrottet av Coronapandemin. Även för kommande räkenskapsår ser efterfrågan inom koncernens tre divisioner mycket lovande ut och några tecken på avmattning finns för närvarande inte.

Sustainability

During the financial year, the Group continued its focus on sustainability. Solar panels have been installed at Be-Ge Stece AB’s facilities in Mönsterås and at Be-Ge Lastbilar AB’s facilities in Oskarshamn, in order to produce environmentally friendly electricity. Two thirds of the process water required by Be-Ge Stece AB for cooling and surface treatment is covered by water from its own well. This means that municipal drinking water does not need to be used in the process.

Det har således varit ett turbulent år för koncernens verksamheter, från en kraftig minskning i efterfrågan under våren med korttidspermitteringar, till en situation under hösten och vintern där många fått arbeta övertid för att leveranserna skall fungera. Det hade inte varit möjligt att klara denna snabba förändring utan koncernens fantastiska medarbetare, som med sin lojalitet och flexibilitet sett till att lösa de stora utmaningar som verksamheterna ställts inför.

Fortsatta satsningar och hållbarhetsarbete

In Vetlanda, Be-Ge Lastbilar AB has also invested in a new environmentally friendly vehicle wash. Electronic cleaning of the wash water, smart rainwater harvesting, and energy efficient motors contribute towards further reducing the environmental impact.

Every year, the Group prepares a sustainability report, which is available on the website, be-ge.se.

Koncernen fortsätter att satsa och investera i de olika verksamhetsgrenarna. I Be-Ge Seating AB i Oskarshamn har investeringen i produktionslinjen för montering av stolar tagits i full bruk och förberedelser för slutmontering av en ny truckstol pågår. Som en del av koncernens arbete för ökad hållbarhet, har beslut fattats om investeringar för att minska användandet av fossila bränslen samt olika energibesparande åtgärder.

Continued long-term perspective –Continued investments

Despite the current global uncertainty, the Be-Ge Group retains its strong belief in the Group’s possibilities, and continues to invest in its various business branches. The Group has decided on, and partially made investments for, an amount of more than SEK 100 million.

Inom Be-Ge Vehicle Division har Be-Ge Personbilar AB genomfört investeringar i verkstäderna i Vetlanda. I april 2021 har beslut fattats om en utbyggnation av lastbilsverkstäderna

Inom Be-Ge Component Division har beslut fattats om en utbyggnation av produktionsytan för Be-Ge Plåtindustri AB. Inom divisionen bedrivs ett aktivt arbete med energieffektivisering med hjälp av utomstående konsulter.

The investments include an investment in Be-Ge Plåtindustri AB, and is the largest investment in the company’s history. It includes an expansion of the production premises, an investment in a fibre laser machine, which is the first of its kind in the Nordic region, as well as two additional welding robots. A total of more than SEK 30 million is being invested in the company.

The extension of the truck workshop in Vetlanda was completed in December 2022. In the coming years, further investments are planned for the Group’s properties, including investment in the rented property in the Netherlands, in order to streamline the use of the rented space.

Under verksamhetsåret har koncernens första hållbarhetsrapport upprättats. Den har tagit sin utgångspunkt för förbättringsarbetet utifrån förhållandena som gällde under 2019-2020. Hållbarhetsrapporten finns publicerad på koncernens hemsida, www.be-ge.se.

In addition to the solar panel system investments mentioned above, further investments in solar panel systems are being planned.

Förväntningar på 2021-2022

Expectations for 2023

The ordering situation in the Group’s three divisions remains very good. Order backlogs extend far into the future and currently demand is not declining.

Ordersituationen inom koncernens tre divisioner är fortsatt mycket god och några tecken på nedgång i efterfrågan finns för närvarande inte. Vaccineringstakten både i Sverige och i Europa börjar att öka och centralbankerna i Europa och USA fortsätter att stimulera efterfrågan. I takt med att restriktionerna minskas och länderna öppnar upp, kommer efterfrågan även i andra branscher än de i vilka Be-Ge koncernen är verksam att förbättras. Tillväxten i de olika länderna kommer därför enligt alla bedömare att bli hög kommande år. Utifrån dessa parametrar ser konjunkturen ljus ut.

However, there are challenges and uncertainties ahead in the coming years. Cost inflation is high, not least in terms of energy prices, and opportunities to pass on price increases to the Group’s customers are still extremely important, in order to defend profitability. Sveriges Riksdag (Bank of Sweden)’s interest rate rises will have a negative impact on private consumption, which may affect customers’ interest in acquiring vehicles.

In addition, there is ongoing contractual action regarding the coming year’s wage increases, in which it has been possible to confirm restraint from the contracting parties.

Det finns dock några orosmoln som kan leda till att konjunkturutvecklingen kommande år kan komma att påverkas negativt. Den kraftiga efterfrågeökningen har lett till komponentbrist på bl.a. halvledare, som riskerar att störa produktionen inom automotivesektorn. Råvarupriserna, främst på stål och skum, har ökat kraftigt under våren 2021. Att erhålla kompensation från koncernens kunder för ökningarna av råvarupriserna är en förutsättning för att lönsamheten inte skall försämras.

But there are also opportunities ahead. There is still a high level of activity regarding various infrastructure projects. This creates opportunities for manufacturers of construction vehicles, which in turn are important customers of the Group’s various companies. The green transition creates business opportunities, as large parts of the vehicle fleet will transition to fossil-free.

Be-Ge koncernen har fortsatt en stark balansräkning och en god likviditet. Detta tillsammans med ägarnas långsiktighet gör att koncernen under kommande verksamhetsår kommer att fortsätta investera och vidareutveckla verksamheterna i respektive division.

Be-Ge therefore sees opportunities to further develop its operations in all three divisions. This belief in the future is reflected in the investments that are being made and planned. The Group’s strong financial position, competent employees, and forward-thinking owners mean that the conditions are good for Be-Ge to take further steps forward!

Håkan Hjalmarsson VD och koncernchef

Håkan Hjalmarsson Managing Director and CEO

ÅRSBERÄTTELSE 2020-2021 - BE-GE KONCERNEN

Values

Bror Göthe Persson started his business in 1934. The principles that Bror Göthe strived for so successfully when the business was built up under his leadership form the basis of the corporate culture and the “Be-Ge spirit” that characterises the Group.

Customer value

By means of professional contact characterised by engagement, knowledge and a high level of availability, solutions are offered that are adapted to meet each customer’s needs.

Deliveries are of high quality, with each employee assuming responsibility for his or her part of the delivery.

Be-Ge’s business relationships are characterised by simplicity, honesty, and close collaboration with the customer.

Long-term view

With its long history and stable ownership structure, Be-Ge stands for reassurance, tradition and reliability. The long-term view means that our employees feel a sense of pride in being part of the Be-Ge family.

Be-Ge is characterised by a strong entrepreneurial approach that results in growth within existing businesses, curiosity about innovations and an interest in developing new business areas.

Collaboration

Through openness and with consideration and respect for the individual, we develop both our employees and our customer relationships.

We always see the big picture, and our guiding principle is to always resolve any loose ends that arise, both internally within the Group and externally with other stakeholders. “Collaboration brings success” is a motto that pervades the whole business.

Assuming responsibility

We make sure we assume responsibility for the sustainable development of the environment, society and our employees.

Be-Ge stands for quality at all levels, where every single employee feels responsible for doing the right thing.

The business is characterised by an awareness of risk and cost, which creates the conditions for continued development of the Group.

Five-year summary

INCOME STATEMENT

*) 2022 has been converted to 12 months and covers the period

BALANCE SHEET

– 31/12/2022.

KEY RATIOS

*) 2022 has been converted to 12 months and covers the period 01/01/2022 – 31/12/2022.

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 equity

Profit for the year / Average equity

Equity ratio

Adjusted equity / Total capital

Financial year

The period 01/01/2022 – 31/12/2022

Be-Ge Group Management

Håkan Hjalmarsson

CEO: Be-Ge Företagen AB

MD: Be-Ge Fastigheter AB

Born: 1962

Employed: 2017

Thomas Axelsson

MD: Be-Ge Seating AB

Born: 1970

Employed: 2019

Henric Arvidsson

MD: Be-Ge Frapett AB

Born: 1980

Employed: 2022

Erik Lodahl

Andersen

MD: Be-Ge Seating A/S

Born: 1968

Employed: 2019

Paul van der Westen

MD: Be-Ge Seating B.V./GmbH

Born: 1974

Employed: 2020

Gary Shaw

MD: Be-Ge Seating UK Ltd

Born: 1968

Employed: 2006

Robert Nyqvist

MD: Be-Ge Stece AB

MD: Be-Ge Lackering AB

Born: 1967

Employed: 2007

Birger Andersson

MD: Be-Ge Plåtindustri AB

Born: 1965

Employed: 2004

Vaida

MD: Be-Ge Baltic UAB

Born: 1974

Employed: 2007

Tomas Engsund

MD: Be-Ge Lastbilar AB

Born: 1965

Employed: 2013

Peter Ek

MD: Be-Ge Personbilar AB

Born: 1965

Employed: 2016

Vaičaitiene

Board of Directors of Be-Ge Företagen AB

Håkan Hjalmarsson

Member

Born: 1962

Lives in Oskarshamn

Board member since 2017–2018

Group assignments: CEO and board member

Be-Ge Företagen AB

Be-Ge Fastigheter AB

Chair of the Board

Be-Ge Seating AB, Be-Ge Seating A/S, Be-Ge Seating B.V., Be-Ge Seating UK Ltd, Be-Ge Frapett AB, Be-Ge Stece AB, Be-Ge Plåtindustri AB, Be-Ge Lackering AB, Be-Ge Personbilar AB, Be-Ge Lastbilar AB, Be-Ge Frysen AB and Be-Ge Fordonsfinans AB

Ingemar Persson

Member

Born: 1953

Lives in Malmö

Board member since 2007–2008

Group assignments: Chair of the Board

Be-Ge Fastigheter AB

Board member

All Be-Ge companies

Peter Cerny

Member

Born: 1966

Lives in Ängelholm

Board member since 2020–2021

Other assignments: Board member EB Road Cargo AB, Smålandshamnar AB

Other assignments: Managing Director/CEO ESBE AB

Board member

Proton Industries AB, Proton Group AB

Business Sweden

Johan Persson

Member

Born: 1966

Lives in Oskarshamn Board member since 2007–2008

Group assignments: Chair of the Board

Be-Ge Office AB

Board member All Be-Ge companies

Other assignments: Chair of the Board

M2 Marina AB, TM Utbildning AB

Board member

Atrinova Affärsutveckling AB

Ulrica Larsson

Member

Born: 1968

Lives in Hörby

Board member since 2021–2022

Other assignments: After Sales Manager Goldschmidt Board member

Stall MagnaRed AB, Eva Thuresson Mat & Dryck AB

Rickard Petri

Chair

Born: 1953

Lives in Växjö

Board member since 2012–2013

Chair of the Board since 2020–2021

Other assignments:

Chair of the Board

Sydostpress AB

Vice Chair of the Board

Gota Media AB

Board member

AB Hjalmar Petri

Be-Ge Seating Division

The Be-Ge Seating Division develops, manufactures, and markets suspended and fixed driver seats, passenger seats, surveillance and office chairs, support and saddle chairs, as well as sound absorbers and accessories for our seating products.

Vision

Through collaboration, the division shall act as a business partner to customers who value and appreciate the difference offered by the Be-Ge Seating Division and its products.

Business concept

The division shall provide adapted seating solutions for those who sit at their workplaces. The Be-Ge Seating Division’s core values are reliable professionalism, creative and flexible solutions, rigid and safe products, ergonomics, comfort and quality, and attractive design.

Be-Ge Seating AB develops, manufactures and markets suspended and fixed driver seats, passenger seats, and accessories for these. Be-Ge Seating AB has a turnover of SEK 305 million outside the division, and has 119 employees.

Be-Ge Seating A/S develops, manufactures and markets passenger seats, as well as accessories and equipment for minibuses, vans and special vehicles. The company specialises in, and leads the way in, developing approved M1-certified seats and special high-quality products for passenger transport vehicles intended for people with or without disabilities, as well as ambulances, police and military vehicles. Be-Ge Seating A/S has a turnover of SEK 50 million outside the division, and has 32 employees.

Be-Ge Seating B.V. in the Netherlands, together with the subsidiary Be-Ge Seating GmbH in Germany, sells and represents all seating products and brands of the

Be-Ge Seating Division. In addition to the Netherlands and Germany, the companies are active in the French and Belgian markets. Be-Ge Seating B.V. has a turnover of SEK 64 million outside the division, and has 29 employees.

Be-Ge Seating UK Ltd markets and distributes the entire range of driver seats, passenger seats, and office chairs to the UK market. The company’s customers are mainly within the automotive industry, but also in the forestry industry. Be-Ge Seating UK Ltd has a turnover of SEK 21 million outside the division, and has 8 employees.

Be-Ge Frapett AB develops, manufactures and markets office and surveillance chairs, support and saddle chairs, and sound absorbers. The product portfolio includes Sverigestolen and Ullmanstolen along with BE-GE and Frapett, which are sold under the BE-GE brand. Be-Ge Frapett has a turnover of SEK 33 million, and has 18 employees.

Be-Ge Seating Division

The past year

The division’s turnover and profitability during the eight-month period for 2022 exceed the levels for the corresponding period in the previous financial year. This is despite the challenges posed by the war in Ukraine, rising inflation, rising interest rates, and soaring energy prices.

On the driver’s seat side, the division’s customers have full order books and delivery times have been long. The ambition of customers to shorten delivery times has been limited by a continued component shortage, which has meant that the division’s driver seat manufacturer, Be-Ge Seating AB, has in turn been somewhat adversely affected by this. Be-Ge Seating AB’s delivery capacity has been good during the year, which has contributed to new sales volumes being established for both existing and new customers. The operations in the Netherlands, Be-Ge Seating B.V., completed some major projects before the end of the previous financial year, which resulted in a lower turnover of driver seats compared to the eight-month period in 2021. During the year, a large order for the delivery of driver seats to trains was received via the subsidary Be-Ge Seating A/S. This order will have a positive effect on capacity utilisation and profits in the coming financial year.

Orders received for passenger seats were low during the first months of the year, which, like with the previous year, is due to a lack of access to vehicles for the division’s customers. The ordering situation has improved during the latter part of the financial year, and maintenance and replacement of seats in the emergency services segment has provided a positive boost. The division’s dealers in the UK, Be-Ge Seating UK Ltd, have also increased in aftermarket sales, as customers keep their vehicles longer due to vehicle shortages. During the year, there was continued follow-up on what the transition of drive lines into electricity, biogas, and hydrogen gas may bring in terms of business opportunities for the passenger seat business.

Sales and orders for office chairs have shown a very positive development during the financial year. The opportunity to once again conduct physical customer visits, together with a strong focus on sales, has resulted in new customer contacts. Be-Ge Frapett AB has met the delivery times they promised, and “Made in Scandinavia” and strong brands have once again this year proved to be a competitive advantage in a tough market.

In 2022, the range of trade fairs increased dramatically after being down during the pandemic years. The division’s companies participated in a number of trade fairs, which resulted in several new customer contacts that were cultivated during the year.

Deliveries of components to the manufacturing companies in the Be-Ge Seating Division have gradually improved during the year. In order to ensure delivery capacity to customers, uncertainty in the supply of components has to some extent been compensated to higher stock levels.

The high prices for raw material, together with increased energy and transport prices, have resulted in price increases becoming necessary during the year. As it only been partially possible to pass on the cost increases to the division’s customers, ongoing work is being done to reduce the cost of components and installation in the manufacturing companies.

In addition to cost reduction projects, initiatives were also carried out during the year within product development and improvement work. This work has resulted in the launch

of new products and customised seating projects. In Be-Ge Seating AB, the production capacity of the 3000 series of chairs has been increased considerably by investing in new equipment and a number of permanent recruitments.

Investments have also been made to reduce climate impact. In Be-Ge Seating AB, district heating was installed in one of the company’s properties, which replaced an oil-fired boiler, and also reduced the consumption of electricity for auxiliary heating.

A new ERP system was installed in Be-Ge Seating A/S as of 01/05/2022. Implementation and commissioning of the system has taken up a lot of internal resources, but is now working as expected.

Be-Ge Seating B.V. has signed a new long-term lease for the business premises in Zaltbommel. By concentrating the business in terms of area, the company will use half of the area compared to before as of mid-2023, and thereby also pay half the rent. As part of the agreement with the landlord, a major renovation project, paid for by the company, was carried out in the autumn of 2022.

Photo: Br. Hofmanns Karosseri

Be-Ge Seating Division

Expected outlook for the division in 2023

The division’s market position and product structure are well-positioned to achieve the goals set for both growth and profitability. To further strengthen profitability, it is important that work on cost rationalisation and cost compensation from the division’s customers is further intensified.

The targets for the division are clear and relate to all business areas: office chairs, passenger seats, and driver seats.

Target fulfilment will be achieved by working within two focus areas:

• Make Be-Ge more known and emphasise what distinguishes us from others.

• Position Be-Ge where customers expect us to be, within decided operating segments.

Work on developing and coordinating the division’s sales work began with good results during the financial year, and will be further developed in 2023. Other functions in the division will also collaborate to a greater extent, in order to share knowledge and follow “best practice”.

A number of development projects will result in product launches in the coming year. In addition, cost rationalising change work is ongoing within the various product portfolios.

The division’s production premises are well adapted to meet our growth targets, and only minor investments in production equipment and staff will be required. This provides good conditions for positive profitability development with volume growth.

Planned investments in the coming years relate to the renovation of office premises and energy-saving measures. Finally, rationalisation investments in component production will be an important area.

The home market for the Be-Ge Seating Division is still Europe, with an ambition to grow established customers in other markets.

Ljungby Maskin AB

Ljungby Maskin AB has been producing and supplying wheel loaders to customers all over the world for 40 years. Be-Ge Seating’s air-suspended driver’s seat is used to add good comfort.

“This chair is standard in our wheel loaders unless the customer requests otherwise. It’s a driver’s seat with several advantages,” says Ljungby Maskin’s founder and CEO Rune Andersson.

Rune Andersson is a major entrepreneur. Already during his military service, he discovered the wheel loader, and the dream of manufacturing this product came true 20 years later. He first took a detour via forklift trucks and founded AB Ljungbytruck. The development of the cab’s ergonomics was prioritised long before the working environment debate took off in the 70s, and since then Ljungby Maskin AB has placed a major focus on the driver’s environment.

5 000 wheel loaders

Ljungby Maskin has built up a good reputation and, over the years, has delivered more than 5,000 top-quality wheel loaders to customers around the world.

“We continuously develop our machines. This often takes place together with our customers, in combination with our own experiences. In this way, many practical solutions have been introduced in today’s standard machines,” Rune explains.

Customised driver’s seat

Be-Ge Seating AB introduced the first driver’s seat with individual adjustments in 1949. All seat models in the Be-Ge 31 series, the driver seats used by Ljungby Maskin, are today equipped with weight-independent height adjustment, quick air release, mechanical seat cushion tilt, and the release of slide rails, air-controlled lumbar support, and integrated headrest. Air-suspended seats offer the highest level of comfort and good ergonomics.

“It is an advantage that Be-Ge delivers a customised driver’s seat to us”

Founder and CEO of Ljungby Maskin, Rune Andersson.

“It’s an advantage that Be-Ge delivers customised driver’s seats that are well-prepared for our production, so that we can easily integrate the chairs into our wheel loaders,” says Rune.

Long collaboration with Be-Ge

Ljungby Maskin manufactures 9 to 30 tonne wheel loaders. The choice of design and equipment is made together with the customer, and the machine is optimised to the customer’s needs. The company’s collaboration with Be-Ge Seating goes way back. “We have been using Be-Ge on and off for 40 years,” explains Rune. The partnership actually started even earlier, before Ljungby Maskin was founded.

"Be-Ge delivered driver seats to us back in 1962 when we produced and built forklift trucks. The first collaboration was actually when we made trucks for a sawmill that Be-Ge operated in Fårbo," says Rune.

Be-Ge Component Division

Be-Ge Component Division consists of the Group’s contract manufacturing units, with companies in Sweden and Lithuania.

Vision

The division’s companies shall be profitable, grow and develop. Have satisfied customers, employees and owners. The division shall be characterised by respect for the individual and conduct its business in a safe and sustainable manner. The division shall strive to continuously improve, learn new things and learn from mistakes. By using the latest technology and working as a team, we shall be competitive in a global market in the long term.

Business concept

With good quality and service and innovative and cost-effective solutions, the division aims to be a natural partner and supplier in tool development and manufacturing, sheet metalworking, welding, surface treatment, painting, upholstery and assembly.

Be-Ge Stece AB deliver components for trucks, passenger cars and machinery, as well as parts for consumer products in heat technology, construction, electronics and appliances. The company develops and manufactures tools and fixtures, and helps the customer all the way from prototype to batch delivery. The company possesses broad technical material expertise and solid design and tool competence. Be-Ge Stece AB has a turnover of SEK 152 million outside the division, and has 66 employees.

Be-Ge Plåtindustri AB manufactures complex sheet metal components for the engineering industry in modern laser and punching machines. The components are further refined by edge bending or hydraulic and eccentric pressing. Production also consists of CNC-controlled edge presses for rational bending of sheet metal components. Be-Ge Plåtindustri AB has a turnover of SEK 126 million outside the division, and has 62 employees.

Be-Ge Baltic UAB primarily undertakes industrial sewing and upholstery, as well as assembly. The company specialises in industrial sewing and upholstery, as well as the partial and final assembly of components for customers in the manufacturing sectors: automotive, office, conference and passenger seats, seating furniture for public environments, health and social care, wheelchairs and various other textile products. Be-Ge Baltic UAB has sales of SEK 36 million outside the division, and 85 employees.

Be-Ge Lackering AB’s operations consist of automotive and industrial painting. The company has capacity to paint everything from complete trucks, buses, boats and similar large objects to smaller components in larger batches. The automotive painting segment consists of repairs and painting of damage to passenger cars and transport vehicles, primarily with insurance companies and private individuals as customers. Industrial painting is carried out in a separate facility with the capacity to paint all kinds of industrial components, although primarily plastic components for the automotive industry. Be-Ge Lackering AB has sales of SEK 22 million outside the division, and 15 employees.

The past year

All companies in the division have experienced high demand, and order backlogs have continued to be at high levels. This means that, in terms of turnover, the division has exceeded the equivalent eight month period from the previous year. In terms of profits, however, the expectations have not been met.

Be-Ge Stece AB has had high demand from all customers, regardless of industry. Prices of raw materials and supplies have remained high, while electricity prices have increased sharply. The cost increases have only partially, and with delay, been transferred to the company’s customers, which resulted in pressure on margins. Until the holidays in 2022, availability of production processes was good, with a good delivery situation for the company’s customers. After the holidays, some of the key processes for high volume items were hit by disruptions, resulting in production backlogs and longer delivery times. Through measures taken in production technology, in combination with

efficient and flexible production staff, the production backlog has been rectified, and delivery precision for this period has is reaching its set targets. The capacity shortage and longer lead times in production that arose during the previous financial year have also characterised eight months of this financial year for Be-Ge Plåtindustri AB. Demand for the company’s products continued to rise until the end of the financial year, after which a slight slowdown from some customers has been discerned. The order backlog is still at a very high level. The capacity shortage has resulted in extra costs for overtime, freight and contracted transport. This, combined with a continued high cost of raw materials, as well as greatly increased energy prices, means that we have not been able to satisfy the demand of our customers, resulting in an unsatisfactory profit for the year. We have invested in a laser cutting machine that will be commissioned in January 2023, in order to rectify the capacity shortage. A decision has also been made to invest in two welding robots, which will further increase our capacity and thereby our ability to accept new orders.

Be-Ge Component Division

For Be-Ge Baltic UAB, the new financial year started with great uncertainty and continued concern due to Russia’s military invasion of Ukraine. Nevertheless, order intake has remained at a high level. During the year, there were disruptions in deliveries of raw materials and consumables, which had a negative impact on production planning and thereby on production. The company has also been affected by rising raw material and energy prices. Maintaining high production efficiency and high delivery precision to customers under these conditions, while not losing profitability, has been a major challenge during the year. Thanks to the good efforts of our staff, as well as good cooperation with the company’s customers, turnover has increased by 10% despite the challenges, and profitability has reached the expected level. In order to continue to develop and streamline operations, further investments in automation of the raw material process were made during the year, and the company invested in new and more efficient sewing machines.

Both the automotive and industrial painting side of Be-Ge Lackering AB has experienced greater demand compared to the previous financial year. Both additional deliveries to existing customers, as well as deliveries to new customers, explain this increase. Our largest client on the industry side has been forced to stop production for a short period of time, which has affected our production efficiency. Painting operations have also been adversely affected by increased paint prices and supplies, while especially the sharply increased electricity prices have had a negative impact on costs. With some delay, compensation for these cost increases has been obtained in newly signed price agreements with customers and insurance companies. This compensation, combined with high efficiency in the production processes, as meant that the margin, despite the above challenges, has largely been maintained.

Be-Ge Component Division

Expected outlook for the division in 2023

There are currently no clear signals that the segments that Be-Ge Component Division operates within are headed into a recession.

Demand continues to be good, and is partly due to the division’s customers’ long, lagging order backlogs. But there are also requests for additional volumes from existing customers, as well as outstanding offers from new customers.

With the capacity-enhancing investments that have been made in Be-Ge Plåtindustri AB, opportunities have been created to meet increased demand.

The car painting section of Be-Ge Lackering AB, which partly works with private customers, noted a slight drop in demand at the end of the year. This part of the business is expected to continue to have weaker demand in 2023, as private customers are postponing minor damage repairs to their cars due to a tougher economic situation.

Although there are no signs of a slowdown in demand at the moment, there is readiness and flexibility within the companies to act quickly in the event of any sign of a possible recession.

Roxtec International AB

is very skilled and proactive”

Roxtec International AB develops sealing solutions for cables and pipes for the energy sector, infrastructure, process industry, manufacturing industry, offshore operations, and shipbuilding industry.

Since its inception in 1990, the company has grown to become a global market leader and supplier of complete sealing solutions for projects within various industries.

Long-term cooperation

Roxtec’s production is based in Karlskrona, and for more than ten years, Be-Ge Stece AB has been supplying sheet metal parts to Roxtec.

“We have long-term working relationships our partners, and want to create relationships that benefit both parties,” emphasises Henrik Bruhn, purchaser at Roxtec.

"Our partnership with Be-Ge Stece works very well. They are very good and proactive. During product

development, they are involved in an early stage of the design phase. They develop tools and give feedback to our designers, in order to create cost-effective solutions," Henrik explains.

The companies maintain a close dialogue.

“No matter who we speak to, we are always treated well,” Henrik emphasises.

Unique invention

Roxtec International AB serves customers in more than 80 markets through global subsidiaries and distributors. The company was founded in connection with the Multidiameter™ invention. This flexible concept improved the possibilities for sealing openings of cables, which was a great success within cabling and pipe installation.

"The flexibility makes it easy to seal a wide range of cables and pipes in very few openings. The bushings are used all over the world for maximum safety, efficiency and reliability."

“Be-Ge

Round sealing systems

Standardised kits from Roxtec are supplied in different designs.

"Be-Ge Stece manufactures the fittings used for our round seals. It’s a round frame with a square packing space for several cables, pipes and modules," says Henrik.

The strength of Roxtec is the breadth of the customer offering.

"Above all, we offer customer-unique products that we sell as an entire package solution. In close cooperation with customers, cable and pipe bushings are tailored to specific needs. In addition, we also sell standardised solutions," says Henrik.

Roxtec’s sealing systems protect against fire, gas, water, dust, pressure waves, EMI (electromagnetic interference), EMP (electromagnetic pulse), pests, pressure, and temperature changes. They also reduce noise, vibration, and material wear and tear. The system is also available in versions approved for use in hazardous areas (Ex).

Henrik Bruhn, purchaser at Roxtec.

Be-Ge Vehicle Division

Be-Ge Vehicle Division markets and sells trucks and passenger cars. The division represents Scania trucks and buses, Volkswagen, Volkswagen light trucks and Skoda, and provides servicing, repairs and service solutions in each segment.

Vision

As sales agents for the Scania, Volkswagen and Skoda brands, the division shall be the market leader in the truck and passenger car segments, and be perceived as the most attractive employer in the industry.

Business concept

The companies within the division shall market and sell attractive transport solutions, accessories and spare parts for each brand. In addition, a well-functioning repair and service organisation shall be provided.

Be-Ge Lastbilar AB is responsible for the sales and service of Scania trucks and buses in the market area covering Oskarshamn/Mönsterås/Högsby/Hultsfred/Vetlanda/ Sävsjö/Gotland. Operations are conducted from our own facilities in Oskarshamn, Vetlanda, Hultsfred and Visby. Be-Ge Lastbilar AB has a turnover of SEK 356 million outside the division, and has 70 employees.

Be-Ge Personbilar AB markets and sells light trucks and passenger cars. The company represents Volkswagen and Skoda and offers servicing, repairs and service solutions in each segment. The company is responsible for sales and service in the market area that covers Oskarshamn/Mönsterås/Högsby/Hultsfred/Vetlanda/ Sävsjö. Operations are conducted from our own facilities

in Oskarshamn and Vetlanda. Be-Ge Personbilar AB has a turnover of SEK 284 million outside the division, and has 38 employees.

Be-Ge Frysen AB owns and manages a property in Visby, in which Be-Ge Lastbilar AB rents most of the space. Be-Ge Frysen AB has a turnover of SEK 0.3 million outside the division, and has no employees.

Be-Ge Fordonsfinans AB offers truck and passenger car customers financing solutions in connection with the purchase of vehicles. Be-Ge Fordonsfinans AB has a turnover of SEK 0.3 million outside the division, and has no employees.

Vehicle Division

The past year

The truck business, which is run by Be-Ge Lastbilar AB, has experienced a low order intake for new Scania trucks during the financial year. This is partly due to a weaker economy, and partly due to Scania having experienced major disruptions in production. This has resulted in greatly delayed delivery times, which has led customers to choose other brands. The market share has therefore greatly decreased during the year. Despite this, Be-Ge Lastbilar AB is still the market leader in the market area.

Demand for truck maintenance and repair services has, however, remained high, which means that turnover and profits for the truck business are satisfactory. It is becoming increasingly important to develop aftermarket services, as well as new services within training, service agreements, vehicle inspection, etc., not least because the sales of new cars have declined.

In recent years, haulage companies have experienced good demand for transport and logistics services, and this has stabilised at a high level. Over the years, our well-established and very good relationship with the company’s customers has resulted in both high customer satisfaction and continued healthy, despite the fluctuating economy.

Marketing activities are still a cornerstone of building relationships with the company’s customers. During the year,

it was possible to resume our physical marketing activities, and to supplement them with the new digital activities created during the pandemic.

Be-Ge Personbilar AB has also been affected by long lead times and delivery times for new vehicles during the eight-month period of 2022. The reasons are the same as they were 2021, i.e. car manufacturers have experienced supply chain issues.

The demand for plug-in vehicles (electric and plug-in hybrid vehicles) continued to be high during the year, with the government announcing the removal of support for electric cars filling the order backlog. Overall, car sales and order intake have been high during the year, which means that the delivery situation for the coming year is very good. As with the previous year, the used car business is an important part of Be-Ge Personbilar AB’s operations.

During the year, various projects were launched to optimise our workshop operations, which is becoming increasingly important for profitability.

The passenger car business has also delivered a result that is above expectations for the shorter financial year.

Be-Ge

Expected outlook for the division in 2023

The automotive division’s demand is assessed to be sensitive to both interest rate increases and increased prices, and this applies not least to the passenger car side.

Demand for new passenger cars is expected to fall slightly in 2023 for the above reasons. Aftersales services will therefore become even more important in the coming years, as customers will keep their cars for a longer period of time.

The passenger car industry is currently undergoing major changes. There is an ongoing transition from vehicles with a fossil fuel driveline to plug-in vehicles. This transition has largely been accelerated by political decisions, where the grants for electric cars and plug-in hybrids have had a major impact. It is currently difficult to assess how turnover will be affected by the grants now being removed, but the demand for electric cars will probably decrease in the short term.

The business model between the dealer and the general distributor of the brands is also being reworked. The development here is moving towards the general distributor selling the vehicle directly to the end customer, and the dealer being paid for delivering the vehicles. This will require the dealer to provide complementary services to maintain volume and profitability.

Be-Ge Lastbilar AB believes that the order intake of new Scania vehicles will continue to be lower than before, due to uncertainty in the economy and increased prices. The perception is that aftermarket services will also be affected by this, which makes a broader range of services increasingly important.

Sustainability and less impact on the environment during transport are also of increasing importance to customers and partners in the truck segment. Battery electric vehicles (BEV) have not come as far as in the passenger car segment, but are moving forward at an ever-increasing pace, with more new products being launched in the coming year. Scania currently has products that can be powered by fossil-free fuel, such as RME/HVO (biodiesel), ethanol, biogas, and electricity.

For both the passenger car and truck business, these new electric vehicles, as well as increased digitisation, have lead to demands for increased competence among employees. Therefore, in the coming year, training initiatives will continue, in order to enable staff to meet the increased skills requirements and market expectations.

Be-Ge Vehicle Division

Stefan

Anderssons

El AB

“We have a great deal of trust in each other”

Stefan Anderssons El AB in Oskarshamn sees great value in the collaboration with Be-Ge Personbilar.

“I appreciate the proximity and a high level of service at Be-Ge,” Stefan Andersson emphasises.

The electricity company, which has been active since 2006, carries out electrical installations for both private individuals and companies in Oskarshamn and the surrounding areas. This means services of various kinds, which include new construction, renovation, planning, service, and to a certain extent on-call service. The company has four employees and the vehicle fleet currently includes five cars.

“I chose Volkswagen because I think these cars are in a class of their own,” says Stefan.

“Above all, I appreciate the high level of comfort and the robustness of the vehicles. We have a Crafter, two Transporters, a Caddy and a Passat.”

Long-term partnership

Stefan appreciates the high level of service offered by Be-Ge Personbilar AB.

“The staff are always available, and we have great confidence

in each other. It is now 17 years since I started the company, and we have enlisted the help of Be-Ge during this time. We buy new cars at regular intervals, and they help us with service and repairs,” Stefan explains.

For Stefan and his employees, it is convenient to quickly and easily visit Be-Ge Personbilar when they need help with a vehicle.

“As we work in Oskarshamn, proximity is very important when cars need to be serviced or if a problem arises. One important service is that we are able to borrow a replacement vehicle when our vehicles are left for service. After all, we have to keep on rolling and working,” says Stefan.

Electrical installations at Be-Ge

Stefan Anderssons El AB has also been collaborating with the Be-Ge Group on electrical installations for many years.

“For 17 years we have been collaborating in different constellations. For example, we were involved in the construction and expansion of Be-Ge’s new passenger car facility in Oskarshamn. It also handles service assignments, replacement of lighting, and even emergency measures," says Stefan.

Stefan Andersson carries out electrical installations for both private individuals and companies in Oskarshamn and the surrounding area.

Hagéns Åkeri AB Unique project in the transition to sustainable transport

Hagéns Åkeri AB in Vetlanda is taking part in a unique pilot project, in which the haulage company is the first in Sweden to use an electrified 3-axle 40 tonne truck from Scania.

“This is a collaboration with Scania Sverige AB, Hydro Extrusion Sweden AB. and Be-Ge Lastbilar AB,” explains Marie H Landegren, CEO of the haulage company.

Hydro, one of the world’s largest manufacturers of aluminium profiles, has its production in Vetlanda. The electric truck will be used for internal transport, and for transport between subcontractors and Hydro’s production units.

“Every day we have a mileage of around 130 kilometres. The electrified truck will drive six trailers that are changed 11 times a day,” Marie says.

“It’s inspiring that we, as a small haulage company, can be involved in the transition to sustainable transport,” continues Lars-Göran Landegren, operations manager at Hagéns Åkeri.

Long-term partnership

Hagéns Åkeri has been collaborating with Be-Ge Lastbilar for more than 30 years.

“We’ve been collaborating for as long as Be-Ge has had a service workshop in Vetlanda. They have a good reputation, show commitment, and provide good service,” says Marie.

“We also appreciate that they can quickly obtain spare parts so we can avoid downtime in our operations,” continues Lars-Göran.

Safety is paramount

The haulage business consists of chemical transport by tanker to municipal water and wastewater treatment plants, Hydro’s internal transport, and environmental transport of recyclable material. The truck fleet includes 25 vehicles.

“Over the years, we’ve mainly driven Scania vehicles,” says Marie. Driver safety is a top priority.

It’s important that our drivers feel safe and secure, as this is their working environment. Therefore, safety is very important when we buy new vehicles. In 2014, we became Europe’s first certified road safety company in accordance with ISO 39001.

Focus on driving behaviour

When Marie took over the haulage company in 2011 after her father, who founded the company in 1956, an EcoDriving project was launched.

“A focus on driving behaviour and fuel consumption is important to both effectivise resources and as part of the company’s sustainability work. Since 2017, we have been running all our vehicles on the renewable fuel HVO100. In order to meet our customers’ requirements, we are also quality and environmentally certified in accordance with ISO 9001 and ISO 14000,” Marie explains.

Hagéns Åkeri AB is the first company in Sweden to use an electrified, 40-tonne, three-axle truck from Scania.

Be-Ge’s path

1934 – 2022

1941

Be-Ge Bil became a sales agent for Scania-Vabis trucks, and is currently the world’s oldest privately owned sales agent.

1934

Bror Göthe Persson took over the import and sales of Ford cars in Oskarshamn. He was something of a visionary and was quick to realise the importance of motoring.

1946

AB Be-Ge Karosserifabrik was established.

1951

Be-Ge Bil became a sales agent for Volkswagen.

1962

Expansion continued, and a factory was also built for the production of truck cabs in the Netherlands.

1966

1949

The first modern suspended driver seats for trucks were developed.

1990

The seat manufacturer Nyström Nordpatent AB in Umeå was acquired, providing Be-Ge Industri AB with a wider product range featuring bus seats, truck seats and office chairs. Bil & Maskin AB was also acquired in Vetlanda in the same year, expanding the region for passenger cars and trucks.

The coachwork factories were acquired from Scania-Vabis in Södertälje. The production of truck cabs has remained at this location, and Scania’s factory in Oskarshamn is now one of Kalmar County’s biggest employers. The production of the driver seats to be fitted in the truck cabs was retained by Be-Ge when it was sold to Scania, and this business activity continued in the newly formed company Be-Ge Stolindustri AB. The company later changed its name to Be-Ge Industri AB, before another name change to the present-day Be-Ge Seating AB.

2017

Frysen Invest AB was acquired with the subsidiaries Visby Tunga Fordon AB and Visby Fordonfinans AB, and the region for trucks was expanded to include Gotland.

2015

Be-Ge Industri AB acquired the remaining shares in Savas Seating B.V., and the company changed its name to Be-Ge Savas Seating B.V., the present Be-Ge Seating B.V.

2012

A new Scania service facility was opened in Hultsfred.

2014

Be-Ge Industri AB acquired 80% of Savas Seating B.V. in Zaltbommel, the Netherlands, with its subsidiaries Savas Qualitätssitze GmbH in Germany and Savas N.V. Belgium.

2008

The remaining shares in Be-Ge Baltic UAB and Be-Ge Stece AB were acquired, and the companies became wholly-owned subsidiaries of Be-Ge Företagen AB.

2001

The Danish companies Jany Scandinavia A/S and Vald. Nielsen & Søn A/S were acquired, as was AB Oskarshamns Plåtindustri.

1993

Be-Ge Traktor & Maskin was established in Åstorp AB and became a general agent for Zetor tractors and Agrostroj agricultural machines. The same year also saw the establishment of Bilcenter i Oskarshamn AB for sales of Seat – and later Skoda – passenger cars.

2018

The two Mönsterås-based companies, Frapett Produktion AB and Mönsterås Pressdetaljer AB, were acquired, and are now known as Be-Ge Frapett AB. Mönsterås Pressdetaljer AB was divested in 2021.

2006

Be-Ge Företagen AB acquired 80% of the Lithuanian company Amersanas.

Be-Ge Företagen AB acquired 1/3 of the engineering company Stece AB in Mönsterås. Be-Ge Seating UK Limited was established in Coventry, England.

2002

The Oskarshamn company Billackeringen E. Johansson AB was acquired for a future investment in both vehicle and industrial painting.