Be-Ge Årsberättelse 2023 EN

REGARDING OUR ANNUAL REPORT

Our annual report for the financial year is not an official set of annual accounts for the Group, but a description of the operations and financial results of the divisions. Ongoing information about significant events and news is available at www.be-ge.se. Further information can be obtained from the Be-Ge Group’s head office on phone number +46 491 45 46 10 or from CEO Håkan Hjalmarsson.

Be-Ge in numbers

SEK 779 MILLION

IS HELD BY THE GROUP IN EQUITY

90 years HAVE PASSED SINCE BE-GE WAS FOUNDED

THE GROUP’S TURNOVER SEK

1,504 MILLION PROFIT AFTER FINANCIAL ITEMS: SEK

134 MILLION

8.9% WAS THE PROFIT MARGIN FOR 2023

THE GROUP’S EQUITY/ASSETS RATIO:

80.6%

17 COMPANIES ARE PART OF THE GROUP

6 COUNTRIES BE-GE OPERATES IN

INVESTMENTS

DURING THE YEAR

TOTALLED SEK

41 MILLION

563 EMPLOYEES

ARE EMPLOYED IN THE GROUP, OF WHICH 160 ARE EMPLOYED OUTSIDE SWEDEN

24% OF SALES TAKE PLACE OUTSIDE SWEDEN

Message from the owners

We would like to thank all Be-Ge employees for a new record year, where you give us opportunities to continue investing in our operations and celebrate 90 years as a company. Let our 90th anniversary give us the energy to continue our development.

/The owners through Per-Erik Persson

The Be-Ge Group's companies

The Be-Ge Group is an international group of companies, and 24% 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

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

Germany

BE-GE SEATING GMBH Jülich

High delivery level and strong result for 2023

During the 2023 financial year, the segments in which the Be-Ge Group operates have shown resilience to the downturn in the economy that parts of the economy have experienced. Thanks to long order backlogs, deliveries in 2023 continued to be at high levels, which contributed to the group once again delivering a strong result.

Like 2022, the 2023 financial year was characterised by geopolitical unrest. In addition to the ongoing war between Russia and Ukraine, unrest has also flared up in the Middle East between Hamas and Israel. The economies in both the US and Europe have withstood the unrest, which has resulted in the decline in inflation not being as great as deemed desirable. The central banks have therefore raised key interest rates during the year to cool down the economy and bring down inflation. At the end of 2023, the interest rate hikes are deemed to have had the desired effect, and both the US Fed and the European Central Bank (ECB) have therefore paused their interest rate hikes. This means that the key interest rate is estimated to be able to be lowered in 2024 and growth to increase again.

In Sweden, inflation has not come down at the same rate as in the rest of Europe. This is partly due to the weak position of the Swedish krona, which means that part of inflation is imported. As some of the raw material purchases are made in €, the weak Swedish krona in these purchases has had a negative effect on profit. The weak currency has also meant that the price decline in € for some of the raw material has not been reflected in the form of lower purchase prices. Energy prices have been at a lower and more stable level in 2023 compared to 2022, largely explained by well-stocked gas stores in Europe. As of 2024, the group works with a new player for the procurement of electricity and the strategy is to price hedge large parts of the purchases.

The group’s three divisions delivered results that exceeded expectations at the beginning of the financial year. Be-Ge

Vehicle Division, which markets and sells trucks and cars, has had a high level of delivery of new vehicles due to better availability of vehicles during the year compared to the previous year. The high incoming order backlogs have therefore gradually come down to more normal levels. The service market has also experienced good demand in 2023, which together with high deliveries generates a good result for the year.

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. As a result, companies were well stocked in 2023. Demand has also exceeded the production capacity of a couple of the companies in the division to some extent during this year, which has resulted in extra efforts being made, including in the form of overtime work, to reduce lead times. Together with the rationalisation investments made, this has resulted in production lead times at the end of the year being at significantly better levels compared to 2022.

In 2023, both new customers and new projects were won by the division’s companies. Some of the projects relate to articles for the transport sector with a focus on electric operation. It is important to continue to be successful as a supplier to customers and projects with a focus on the green transition.

The Be-Ge Seating Division, which manufactures driver and passenger seats, office and surveillance chairs, has had a very successful year with the highest sales and profit in the division’s

Ett tudelat verksamhetsår

history. Large order backlogs have also contributed to a high level of deliveries within the Be-Ge Seating Division. In addition, deliveries have been made to a couple of major train projects, which has contributed positively to both turnover and profit. In the driver’s seat and passenger seat segments, activities have been undertaken to streamline and cost-optimise production.

The product segments which the Be-Ge Seating Division operates in developed well during the year. However, the ambulance segment in the UK has had profitability problems, which has resulted in a major loss of customers for the company there.

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.

2023 has been a very successful year for the Be-Ge Group with a turnover of SEK 1,504 million and a record profit of SEK 134 million. This would not have been possible without the efforts of our skilled employees in the Be-Ge Group every day.

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.

Liquidity, working capital and investments

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 high rate of deliveries during the year meant that capital tied up in accounts receivable was high during the year. As in the previous year, delivery times from the companies that complete new chassis are still long, which ties up capital in Be-Ge Lastbilar AB. Inventory levels remain high in general, and work to reduce these levels has begun during the year. All in all, capital tied-up has therefore been at high levels during the year.

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.

In 2023, not all investments that have already been decided on have been implemented. This means that cash flow during the year, despite the high level of tied-up working capital, has been very positive. At the end of the year, the group’s cash and cash equivalents amounted to SEK 177 million, an increase of SEK 66 million from the previous year. As in previous years, the group has no need for external loans.

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.

With good liquidity behind it and a strong belief in the future, the Be-Ge Group continues to invest in its operations. For 2024, new investments of SEK 32 million are forecast, which together with previously decided, but not yet completed investments mean that the group will invest a total of just over SEK 70 million.

Fortsatta satsningar och hållbarhetsarbete

The Be-Ge Component Division continues to invest in automation solutions in the form of robot cells, but a hydraulic press will also be replaced during the year. The Seating Division will make productivity-enhancing investments in the manufacturing process, as well as streamlining and making other processes more effective. The Be-Ge Vehicle Division continues to upgrade its premises, and in 2024 the truck workshop in Hultsfred will be expanded with two more ships.

Continued focus on sustainability

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.

Sustainability issues have increasingly come into focus in the group’s various operations in 2023. At Be-Ge Seating AB’s plant in Oskarshamn, investments have been made in a larger solar cell plant and decisions have been made on investments in solar cells both at Be-Ge Lastbilar AB’s workshop in Visby and at BeGe Baltic UAB’s factory in Klaipeda, Lithuania.

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 group prepares a sustainability report that describes the work carried out on various sustainability issues. In 2023, the EU passed a decision on extended reporting requirements for companies regarding sustainability issues, CSRD (Corporate Sustainability Reporting Directive). The work must be reported in accordance with the new ESRS standard (European Sustainability Reporting Standards). The Be-Ge Group is covered by the new requirements as of the 2025 financial year. The work to raise the level of ambition in sustainability work, not just to meet the increased regulatory requirements, has begun and sustainability will become an increasingly important part of the companies in order to continue to be relevant as suppliers.

Fiscal year 2024

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.

Förväntningar på 2021-2022

During the end of 2023 and the beginning of 2024, the companies within the group have started to notice a certain decline in order intake, but this is occurring from high levels. Measures to meet a decline in demand and capacity have already been taken in part. The car trade is obviously suffering from the higher interest rates, which reduces interest in buying new cars. The environmental bonus for electric cars, which was removed in autumn 2022, has also had a negative impact on demand, not least for the private market. For the group’s manufacturing companies, there is uncertainty about the economic development and its impact on operations.

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 signs that inflation is on the way down and thus the interest rate peak would also have been reached, which, according to many assessors, will lead to cuts in the key interest rate in 2024. This could mean that the economy softens and that the conditions for an upturn in the not too distant future increase.

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.

The transition of the vehicle fleet that is underway with the implementation of new, fossil-free powertrains benefits the companies within the group that work towards the automotive segment. Orders for new articles for e.g. electric vehicles have already been received, and this development is expected to continue. Deliveries to customers working on infrastructure projects will also create interesting business opportunities in the future.

The Be-Ge Group’s strong financial position creates good conditions for continued growth, where investments in existing operations are an important part. With loyal and competent employees, a successful 2023 and a strong belief in the future, we are looking forward to the 2024 anniversary, when the group turns 90 years, with confidence.

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.

Håkan Hjalmarsson Managing Director and CEO

Håkan Hjalmarsson VD och koncernchef

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 01/01/2022

BALANCE SHEET

KEY RATIOS

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

Management of the Be-Ge Group

Håkan Hjalmarsson

CEO: Be-Ge Företagen AB

MD: Be-Ge Fastigheter AB

Born: 1962

Employed: 2017

Paul van der Westen

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

Born: 1974

Employed: 2020

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

Gary Shaw

MD: Be-Ge Seating UK Ltd

Born: 1968

Employed: 2006

Vaida Vaičaitienė

MD: Be-Ge Baltic UAB

Born: 1974

Employed: 2007

Tomas Engsund

MD: Be-Ge Lastbilar AB

Born: 1965

Employed: 2013

Robert Nyqvist

MD: Be-Ge Stece AB

MD: Be-Ge Lackering AB

Born: 1967

Employed: 2007

Peter Ek

MD: Be-Ge Personbilar AB

Born: 1965

Employed: 2016

Birger Andersson

MD: Be-Ge Plåtindustri AB

Born: 1965

Employed: 2004

Board of Directors of Be-Ge Företagen AB

Håkan Hjalmarsson

Member

Born: 1962

Lives in Oskarshamn

Board member since 2017–2018

Ingemar Persson

Member

Born: 1953

Lives in Malmö

Board member since 2007–2008

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

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:

• 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

Ulrica Larsson Member

Born: 1968

Lives in Hörby

Board member since 2021–2022

Group assignments:

Chair of the Board

• Be-Ge Office AB

Board member

• All Be-Ge companies

Other assignments:

• After Sales Manager Goldschmidt

Board member

• Stall MagnaRed AB,

• Eva Thuresson Mat & Dryck AB

Per Thorsell

Member

Born: 1967

Lives in Kalmar

Board member since 2023

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

• M2 Marina AB,

Board member

• Atrinova Affärsutveckling AB

• Oskarshamns Golf AB

• Värde Ansvar Gemenskap Handlarna i Sverige AB

Other assignments:

Chair of the Board

• Sydostpress AB

Vice Chair of the Board

• Gota Media AB

Board member

• AB Hjalmar Petri

Other assignments:

• President and CEO Mekka Traffic AB

Board member

• Sveriges Bussföretag

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

To be the market leader in the European niche market´s within high end seating on appointed focus segments. Manufacturing volumes of >150.000 seat units annually within 5 years (2029).

Business concept

Develop, manufacture and sell seat solutions that comply with necessary standards and norms for the branches we are focusing on. Be-Ge’s core values are customer value, long-term view, collaboration and assuming responsibility. Our products shall represent creative and flexible solutions, rigidity and safety, ergonomics, comfort and quality as well as 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 348 million outside the division, and has 120 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 95 million outside the division, and has 37 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 70 million outside the division, and has 30 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 25 million outside the division, and has 7 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, 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 19 employees.

Be-Ge Seating Division

The past year

In 2023, the business within the Be-Ge Seating Division developed very positively. Both turnover and profit are the highest in the division’s history. Costs for raw materials and energy have fallen and stabilised, and the companies in the division have worked actively to pass on the increased wage costs and the effects of the weak SEK exchange rate to the end customer.

In 2023, driver seat customers continued their efforts to reduce their long delivery times and high order backlogs. This has meant that demand for seats has been good during the year, which, together with better functioning supply chains, has resulted in a high level of deliveries. In some segments, a slowdown in demand has been seen in line with shortened delivery times, but these volumes have been successfully compensated for with new seat projects. This includes some train projects, where deliveries of driver’s seats to a Danish train operator contributed positively to the result. Increased marketing in the markets in the Netherlands, Belgium, France and Germany has contributed to higher order intake.

Sustainability issues are becoming increasingly important for

the division’s customers, and a number of different initiatives have been undertaken to be part of the transition. During the course of the year, Be-Ge Seating AB has certified its operations in accordance with ISO 45001:2018 with regard to the working environment and the operations in the Netherlands have certified their operations in accordance with ISO 14001:2015. In addition, the companies continue to invest in energy efficiency improvements such as solar cells. Various cost reduction projects are ongoing and as part of this, the premises in the Netherlands have been halved and made more cost-efficient.

Order intake and turnover for the passenger seat segment of the division were at record levels during the financial year. This despite the fact that many projects are being postponed due to a continued shortage of vehicles for the division’s customers. Projects have also been carried out for passenger seats in order to cost-optimise the products and thereby obtain a better basis for pricing towards the end customer. The fact that passenger seats must be certified and tested as well as ergonomic is becoming increasingly important for the segment’s customers. In order to meet the increased requirements, the

manufacturing company in Denmark, Be-Ge Seating A/S, has certified its operations in accordance with ISO 9001. The division’s passenger seat distributor in England, Be-Ge Seating UK Ltd, suffered a couple of major customer losses during the year linked to the ambulance segment. As customers keep their vehicles longer due to vehicle shortages, the aftermarket with spare parts remains important. The new powertrains for vehicles such as electric, biogas and hydrogen bring new types of requirements for passenger seats, and the division’s companies are involved in these development projects.

Sales of office chairs during the financial year remained at approximately the same level as for the calendar year 2022.

A decline has been noted for traditional office chairs, while surveillance chairs and saddle and support chairs have increased to a corresponding degree. During the year, a number of measures have been implemented that have streamlined production flows and also shortened delivery times. Increased personnel costs and a weak Swedish krona have led to a general price adjustment in the first part of the year, and further adjustments will be made in Q1 2024.

As deliveries of components to the manufacturing companies in the Be-Ge Seating Division are now working well, the need for extra buffer stock to ensure component supply has decreased. As a result, stock levels will gradually decrease.

Be-Ge Seating Division Won prestigious tenders

Be-Ge Seating Division has won two prestigious public tenders for train driver’s seats. They are for the German Deutsche Bahn, one of the world’s largest operators in the segment, and for DSB, Denmark’s state-owned train operating company.

Two decisive decisions a few years ago led to the Be-Ge Seating Division becoming an increasingly competitive player for global train customers.

"In 2020, we took the decision to position ourselves more clearly in the segment, and to invest in becoming a supplier that meets an increased number of the specific requirements for driver seats in the train market," says CEO Thomas Axelsson, who continues:

"This meant, for example, that we chose to supplement with a certification towards a certain European standard for welding, EN 15085, which applies to suppliers to Deutsche Bahn, among others. In addition to meeting the exact requirements, we have advantages such as being very strong in modular, customer-specific solutions, in combination with lower series volumes. We are proud that we have succeeded in entering and becoming a supplier in competition with global companies in the market."

The agreement involves the delivery of 300–500 seats per year to Deutsche Bahn over an eight-year period. For DSB, the agreement refers to a renovation project where a total of 700 driver’s seats will be replaced in existing trains in 2023 and 2024.

Powered driver's seats for demanding environments

Over the past two years, the Seating Division has intensified its efforts to develop an electrically powered driver’s seat for machines in harsh environments such as the forestry industry.

"Finding solutions that last over time in demanding environments with high dynamic loads is a challenge. In 2023, we launched a seat that will go into series production in 2024. The hope is that within the first few years we will reach up to 500 seats per year with good growth opportunities." There is a strong demand and the next generation of machines will also have a number of other individual, saved settings to simplify operator changes. Correct seat settings are important for the working environment, and this is facilitated by preselected options that quickly adapt to the respective driver.

Be-Ge Seating Division

Expected outlook for the division in 2024

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 regarding growth and profitability 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.

Cooperation within the division’s sales work will be further developed with the aim of creating the conditions for maintaining the accumulated growth rate. The work will include both improved work processes and employee development initiatives.

The division has already invested extensively in sustainabilityrelated improvements on an ongoing basis. Further efforts will be made to improve the division’s position on sustainability issues.

The companies production facilities are well suited to meet growth targets over a period of up to three years. This provides good conditions for positive profitability development with volume growth. In the three to five year term, investments will be required in additional production premises, offices, production equipment and personnel.

A number of development projects will result in product launches in the coming year. In 2024, the electrically powered driver’s seat, which attracted a lot of attention when it was presented, will go into series production. In addition, cost rationalising change work is ongoing within the various product portfolios.

Planned investments relate to energy rationalisation, replacement of energy sources, workplace design, business systems, rationalisation investments for component production and production equipment for new products.

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

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, 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 162 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 132 million outside the division, and has 66 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 a turnover of SEK 46 million outside the division, and has 86 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 a turnover of SEK 22 million outside the division, and has 14 employees.

Be-Ge Component Division

The past year

Demand and capacity in the division’s companies have been at a high level throughout 2023. As was the case for the manufacturing industry as a whole in Sweden during the calendar year, Be-Ge Component Division has also shown great resilience to the economic downturn. This means that the division has exceeded expectations in terms of both turnover and profit, even when taking into account the electricity subsidy received, which has had a positive impact on profit by SEK 3.9 million. Both new orders from existing customers and new customers have been assigned to the division’s companies during the financial year.

In the first quarter of 2023, turnover in Be-Ge Stece AB increased by as much as 26% compared to the first quarter of 2022. Demand was strong in all customer segments, but deliveries of components to heavy vehicles and the energy/ heating technology industry in particular have been at high levels. The high capacity utilisation in operations has resulted in a certain lag in production, as the company was also affected by disruptions in a couple of key processes in 2023. Measures taken, including in the form of additional personnel resources, have led to the production backlog at the end of 2023/2024 being at an acceptable level. During the year, Be-Ge Stece AB has also received renewed quality certificates for both IATF 16949 and ISO 9001, as well as for the ISO 14001 quality standard.

Be-Ge Plåtindustri AB had a shortage of production capacity in 2021 and 2022, which resulted in longer lead times in production. At the beginning of 2023, the investment in a modern and highly automated machine for blank cutting was put into operation. Getting the machine up and running has taken longer than expected, but despite the fact that the full effect of the investment was not achieved during the year, this

has contributed to eliminating the lead times in production. To further increase the company’s production capacity, investments have been made in two welding robots, which were installed at the beginning of 2023.

Despite the prevailing uncertainty regarding economic development and war in the immediate area, the financial year for Be-Ge Baltic UAB has been characterised by good demand and continued high order intake. This has resulted in an increase in turnover of just over 20% and a result of >10% of turnover, which is well in line with expectations for the business. The increase in turnover is explained by both higher demand from existing customers and new projects. The targeted work towards new potential customers has led to an increased number of requests for quotations and winning offers. The quality of the services delivered is of great importance to Be-Ge Baltic UAB, and in 2023 the company celebrated 20 years since the implementation of ISO 9001 and 14001. Investments have been made during the year in air cooling and air conditioning systems to improve the working environment, and to cope with the increased material flow, an outdoor storage canopy will be completed in the second quarter of 2024.

The automotive painting part of Be-Ge Lackering AB’s operations has decreased somewhat during the year. However, this decline has been offset by a corresponding increase in industrial painting. This means that the turnover for the financial year is at the same level as for the 2022 calendar year. An unchanged turnover combined with lower energy prices means that the company is delivering better results for 2023 compared to 2022. In 2023, the company has also worked to improve efficiency in production and to continue to maintain a high level of service and quality for the company’s customers.

Be-Ge Stece

Won the Swedish Transport Administration’s tender

As a result of the pandemic, international supply chains were disrupted and freight prices soared. This meant that the Swedish Transport Administration was looking for a European and domestic supplier in its latest procurement process.

Be-Ge Stece took the opportunity, participated and won the tender of Heybach springs. The order relates to approximately 600,000 items per year for three years, with an option for another three years.

For Stece, the order means a lot.

"It’s our first customer from a public sector tender, and it’s a new type of industry for us. It’s a string to our bow that broadens our business, which increases our resilience to economic fluctuations if another industry slow down. At the same time, we can reflect on the fact that it is good that Swedish tax money is used in domestic, efficient and sustainable production," says CEO Robert Nyqvist.

Heybach springs are used to anchor rails to sleepers. They are

complex and rough parts to produce with complicated bending, which required long preparations for production, including twenty weeks to develop the new tools. The material of highstrength steel with a special alloy is demanding to work with.

"There was a lot of data about Stece that had to be reviewed and verified before we received the tender documents. Our capacity, experience and knowledge in tool design and manufacturing, together with the right price, weighed heavily when we finally got the assignment, as well as a logistically good location close to Nässjö, where the springs will be delivered for further distribution."

The Swedish railway network is in great need of upgrading. The assignment lies with the Swedish Transport Administration. In 2023, the framework for railway maintenance amounted to almost SEK 15 billion.

"We have the capacity to increase volumes if necessary, and we are in close dialogue with the Swedish Transport Administration. For example, we can add another tool to a parallel track.

Be-Ge Plåtindustri AB Investments for increased capacity

Be-Ge Plåtindustri AB manufactures sheet metal components in small and medium-sized series for the engineering industry. Demand for the company’s services is high, and in order to meet these demands, capacity-increasing investments were made in 2022 and 2023 in a fibre laser machine and more welding robot cells.

The largest customer segment for Be-Ge Plåtindustri is in the manufacture of construction machinery. Last year, an agreement was also signed with Rottne Industri AB, which manufactures forestry machinery, and production started in January 2023.

"Production has been ongoing throughout the year and consists of mixed items, but mainly folding steps. It is a welded construction that is delivered surface-treated and painted," says CEO Birger Andersson and continues:

"We are very pleased with the collaboration with Rottne, which has worked very well. Although we are currently secure in having full order books, it is valuable to broaden the customer segments to reduce vulnerability if an existing market fail.

Fibre lasers and welding robots

During the year, the fibre laser machine from Trumpf was put into operation. It is a complex 12 kW machine with associated automatic sheet metal storage and integrated pre-cut part handling.

"It gives us the opportunity to increase our capacity and cost-efficiency to meet the demand for our services. We are in the start-up phase and see great benefits in increasing productivity once we get started seriously. For the same reason, we have also invested in two new welding robot cells and now have a total of eight. The strong focus on automation sends positive signals to both the market and employees. It is great that the company is developing with initiatives that strengthen our position for the future," concludes Birger Andersson.

Be-Ge Component Division

Expected outlook for the division in 2024

A decline in demand is beginning to be noticed from the division’s customers operating in the transport sector and in energy and heating technology. Vehicle manufacturers are starting to catch up with their production, leading to a reduction in the previously long order backlogs. High inflation and higher interest rates during the year, combined with a slowdown in demand for energy transition in Europe linked to well-stocked gas stores, mean that activity in energy and heating technology is decreasing. Other segments in which the division’s customers operate are characterised by a decline in demand, however, the decline is from high levels and there is so far no question of any dramatic cuts so far.

In order to be competitive, Be-Ge Plåtindustri AB made productivity-enhancing investments in welding robots and

a machine for blank cutting in 2024. The companies in the division will continue to invest in automation solutions to streamline production. Be-Ge Stece AB has already decided to replace one of its hydraulic presses.

Investments made in combination with increased customer service mean that, despite a downturn in the economy, the division is looking positively towards the coming financial year. Turnover and profit for 2024 are therefore estimated to decrease only by 5%-10%.

If the downturn in the economy were to be more severe than what is deemed to be the case today, there is preparedness and flexibility within the companies to be able to act quickly and adapt the operations.

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 379 million outside the division, and has 65 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 266 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 0.4 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 0.5 million outside the division, and has no employees.

Be-Ge Vehicle Division

The past year

The truck business, which is run by Be-Ge Lastbilar AB, has also experienced a low order intake for new Scania trucks in 2023. This is partly due to a weaker economy and higher interest rates, and partly due to the continued long delivery times for new vehicles. Despite a weaker order intake, Be-Ge Lastbilar AB has defended its position as market leader in the market area.

Demand for truck maintenance and repair services has remained good, which means that turnover and profits for the truck business are satisfactory. After-sales services, together with new services in training, service agreements, vehicle inspection, etc., are becoming increasingly important to develop, not least as new car sales have declined. These services help to increase the availability and reduce downtimes of customers’ vehicles and thereby also improve their profitability.

In recent years, haulage companies have experienced good demand for transport and logistics services, but a certain slowdown could be seen at the end of the year. 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 a certain economic slowdown.

Marketing activities are still a cornerstone of building relationships with the company’s customers. Several activities have been carried out during the year, such as test drives, driver meetings, etc.

In 2023, delivery times for new cars have been shortened, which has resulted in a reduction in the order backlog in Be-Ge Personbilar AB. This in turn has meant that new vehicle deliveries have been at a high level.

The subsidy for electric cars, which was withdrawn in autumn 2022, has resulted in a sharp decrease in demand from private individuals for this type of vehicle. Orders for electric cars are currently made predominantly by company car drivers. The higher interest rates during the year also had a negative impact on demand for other vehicles. However, the used car business has continued to be at satisfactory levels and is an increasingly important part of Be-Ge Personbilar AB’s business.

From 1 November 2023, the agent model was introduced for parts of the sales of electric cars. The model means that the general distributor sells the vehicle directly to the end customer and the dealer receives a commission for the delivery of the vehicles. This business model will be gradually introduced for other new car sales as well.

During the previous year, a couple of different projects were started to optimise the workshop business. This has resulted in improved profitability in aftermarket services during the year, and demand for these services has been good in 2023. In order to further develop the aftermarket business, decisions have been made on investments in the sheet metal workshop and in equipment for improved tyre handling.

Both the car and truck businesses are delivering results well in line with expectations.

Be-Ge Personbilar AB: Changed conditions impacted the electric vehicle market

During the period with climate bonuses for environmentally friendly cars, sales of electric cars increased significantly. As much as 35% of Be-Ge’s car sales were for some time electric cars, but when the subsidy ended on 8 November 2022, conditions changed and sales fell.

However, interest in electric cars is still high and CEO Peter Ek believes that the market will recover in the long term:

"We are still selling a lot of electric cars, but this is in a declining market where volumes are falling throughout the country. Volkswagen and Skoda are at the forefront of the development of electric cars, and they are launching several new versions and hybrids in 2024, which I believe will get a positive response from customers. It will be interesting to see how they are received. However, there are many disruptive factors in the world around us that are affecting the market and 2024 looks set to be a year at a slower pace than during a normal year.

On the transport vehicle side, electric drive has not yet been as popular in the region."

"We had believed in a higher response. Perhaps this is due to insufficient range for our region, which has longer distances than the metropolitan regions, where demand has been higher. The next generation to be launched has a range of up to fifty to sixty miles, which probably makes it a more interesting option for our business owners in the future.

A trend in other sales is that petrol-driven small cars are increasing."

"Smaller petrol-driven cars are still attractive. We’ve seen this for a long time, but right now when the economy is tougher for many, it can also be a question of price that more people are going back to smaller cars. Today’s small cars are also significantly safer than previous models, which means that you can feel reasonably safe even in a smaller car."

Electrification requires major investment in training

Scania’s electric trucks for urban traffic have been on the market since 2021, but the development towards all-electric tractors and trucks that are adapted for longer and heavier transports is moving quickly. Scania’s global target is for at least half of its sales to be fully electric vehicles by 2030.

Approximately four percent of Be-Ge’s truck sales in 2023 consisted of all-electric vehicles for urban transport. They travel short distances, up to around two hundred kilometres a day, and are mainly used for parcel deliveries and industrial transport. Already in the coming year, trucks intended for regional transport will be launched, which will be able to cover considerably longer distances on electric power.

"The rapid electrification of the heavy vehicle fleet is a challenge for society as a whole. This requires both a major expansion of the infrastructure for the electricity systems and increased green electricity production. For our customers, there are challenges in terms of working and driving times to be solved, as well as the possibility of getting their increased costs back from their clients," says CEO Tomas Engsund and continues:

"We try to assist customers with knowledge and information about what they need to consider when switching to electric operation, for example by making route calculations to secure the haulage company’s transport assignments and to electrically secure the property. We also suggest other suitable alternatives for the customer’s business that can replace diesel operation, such as biogas operation – a fantastic product that unfortunately suffered a setback when the tax rebate disappeared.

The transition to electric-driven heavy vehicles affects Be-Ge’s internal organisation."

"For our own part, the challenge involves major training efforts for all staff in how to handle the new technology, but especially for service and workshop staff. For example, handling the high voltage in the electric powertrains is dangerous and requires a high level of knowledge. In the long term, we also need to develop new business opportunities for the workshop, as the need for service is less frequent for electric trucks than for diesel vehicles."

Oskarshamns Logistik AB

First with electric trucks in Oskarshamn

Oskarshamns Logistik has been commissioned to handle the internal transport of goods for Scania in Oskarshamn. Eight trucks are in shuttle traffic between the logistics centre at Kvastmossen and the factory. As of April 2024, three of them will be electric, and in about five years all eight are expected to be replaced by electric trucks.

In preparation for the switch to electric trucks, Oskarshamns Logistik has built a facility with eight charging stations for a total of 750 kW at its newly built terminal on Kvastmossen’s industrial site.

"The market is demanding electric power, and we are investing to develop and be able to offer the opportunity to all our customers in the future," says CEO Dag Petersson.

Before the decision was made to purchase electric trucks, the company had to test drive a car in harsh conditions for a week in a test together with Scania and Be-Ge.

"We analysed flows and carried out simulations. Then we saw in black and white that charging times work well, for example, and our drivers were also very satisfied. They appreciated the quiet working environment in the cars."

In addition to the environmental aspect, Dag Pettersson also sees the benefits of better cost control:

"We will lease the cars from Be-Ge, which also includes service agreements, which means that it will be easier to make financial calculations. We will also invest in solar panels at the plant in the future to secure our own electricity production."

Be-Ge Vehicle Division

Expected outlook for the division in 2024

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. The number of newly registered cars is estimated by Bil Sweden to decrease from 290,000 in 2023 to 240,000 in 2024, a decline of 17%. After-sales services together with used vehicle management will therefore become even more important in the coming years.

Although overall sales of new cars are estimated to decrease, the brands represented by Be-Ge Personbilar AB (VW and Skoda) have a number of new models with different types of powertrains to come in 2024. This means that, despite everything, the company is looking forward to the coming financial year with confidence in terms of car sales.

The order intake for the new Scania next financial year is deemed to be unstable due to a weaker 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. Electric drive (BEV) is moving forward at an increasingly fast pace and several product innovations will be launched in 2023 as well. 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. Training of staff is of great importance in order to meet market expectations.

Be-Ge´s path

1934 – 2023

1941

Be-Ge Bil became a sales agent for ScaniaVabis 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.

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.

1946

AB Be-Ge Karosserifabrik was established.

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.

1966

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.

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.

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.

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.

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.

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.

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.

2002

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

www.be-ge.se