Annual Report 2021/22

Page 33

Annual Report

2021 - 2022
ANNUAL REPORT 2021-2022 - BE-GE GROUP

CONTENTS

Summary of the year 4

The three divisions in the Be-Ge Group 6

The CEO’s review 8

Values 10

Five-year summary 12

Be-Ge Group Management 14

Board of Directors of Be-Ge Företagen AB 16

Be-Ge Seating Division .................................................. 18

Be-Ge Seating AB 21

Be-Ge Seating A/S 22 Be-Ge Seating B.V./GmbH 23

Be-Ge Seating UK Ltd 25 Be-Ge Frapett AB 26

Expected outlook for the division 27

Be-Ge Component Division 28

Be-Ge Stece AB 30 Be-Ge Plåtindustri AB 33 Be-Ge Baltic UAB 34 Be-Ge Lackering AB 36 Expected outlook for the division 37

Be-Ge Vehicle Division ................................................... 38 Be-Ge Lastbilar AB 41 Be-Ge Personbilar AB 42 Expected outlook for the division 43

Be-Ge Fastigheter AB .................................................... 44

Be-Ge’s development 46

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.

3 ANNUAL REPORT 2021-2022 - BE-GE GROUP
4 ANNUAL REPORT 2021-2022 - BE-GE GROUP Summary of the year THE GROUP’S TURNOVER 1 204 SEK MILLION PROFIT AFTER FINANCIAL ITEMS 81 SEK MILLION THE GROUP’S EQUITY 76% /ASSETS RATIO

Both turnover and results were the best we have achieved. With high equity and good liquidity, we continue to invest in order to meet the challenges of the future and create good work environments.

We would like to thank all our employees and look forward to meeting those who have been with us for 25 years and inviting them to a party.

/The owners through Per-Erik Persson

5 ANNUAL REPORT 2021-2022 - BE-GE GROUP
INVESTMENTS DURING THE YEAR 45 SEK MILLION 24% OF SALES TAKE PLACE OUTSIDE SWEDEN 531 EMPLOYEES Message from the owners IN THE GROUP, 158 OF WHICH ARE EMPLOYED OUTSIDE SWEDEN

BE-GE SEATING DIVISION

BE-GE COMPONENT DIVISION

Be-Ge Component Division is the Group’s

units for

of

press parts and tools. There is also

and assembly work, as well as painting services.

BE-GE VEHICLE DIVISION

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

6 ANNUAL REPORT 2021-2022 - BE-GE GROUP 1 . BE-GE SEATING AB Oskarshamn, Sweden 2. BE-GE PERSONBILAR AB Oskarshamn, Sweden 3. BE-GE LASTBILAR AB Oskarshamn, Sweden 4. BE-GE FASTIGHETER AB Oskarshamn, Sweden 5. BE-GE LACKERING AB Oskarshamn, Sweden 6. BE-GE PLÅTINDUSTRI AB Oskarshamn, Sweden 7. BE-GE FRAPETT AB Mönsterås, Sweden 8. BE-GE STECE AB Mönsterås, Sweden 9. BE-GE FRYSEN AB Visby, Sweden 10. BE-GE BALTIC UAB Klaipeda, Lithuania 11. BE-GE SEATING A/S Frøstrup, Denmark 12. BE-GE SEATING B.V. Zaltbommel, Netherlands 13. BE-GE SEATING GMBH Jülich, Germany 14. BE-GE SEATING UK LTD Derbyshire, UK Companies in the Group The three divisions in the Be-Ge Group
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.
The
contract manufacturing
the production
sheet metal components,
sewing
PARENT COMPANY: BE-GE FÖRETAGEN AB BE-GE VEHICLE DIVISION BE-GE COMPONENT DIVISION THE REAL ESTATE BE-GE SEATING DIVISION
7 ANNUAL REPORT 2021-2022 - BE-GE GROUP 2 3 4 5 6 1 8 9 10 11 13 12 14 7

THE CEO’S REVIEW

Strong demand despite a turbulent external environment

The previous financial year 2020–21 ended with strong demand in the Group’s three divisions. This trend continued in 2021–22, even though both the pandemic and problems in the supply chains had a negative impact on the Be-Ge Group’s operations. Thanks to the Group’s committed and loyal employees, the delivery performance and production capacity within the divisions has been maintained.

Raw material prices and component shortage

During the financial year 2021–22, inadequate supplies of components, and in particular semiconductors, affected the Group’s customers in the automotive segment. Be-Ge Seating Division, which manufactures driver and passenger seats, office and surveillance chairs, has had to continuously adapt its manufacturing capacity, due to adjusted forecasts from one of the division’s major customers. The shortage in the availability of vehicles had a negative impact on operations in Denmark and the UK, where installed passenger seats in ambulances, police cars and other similar vehicles represent important business. Even in the division’s own manufacturing processes, the component shortage has on some occasions

resulted in delivery delays, albeit to a limited extent. Securing production in the production units by avoiding component shortages has become an increasingly important task for the division’s purchasing departments. The underlying demand from the Be-Ge Seating Division’s customers remains strong, even though some of the division’s customers have been adversely affected by the component shortage.

The Be-Ge Component Division, which manufactures sheet metal components, press parts and tools, performs sewing work and provides painting services, has also seen healthy demand for the division’s products and services. Demand has occasionally exceeded production capacity during the financial year, which resulted in longer delivery times. Problems with the availability of raw materials and input goods also resulted in longer lead times. The raw material price trend was dramatic during the year, with steel prices almost doubling during the year. This, combined with increased energy prices, resulted in higher manufacturing costs and the need to implement price increases for the division’s customers. In most cases, price increases have been met with understanding, although price discussions are still under way with one of the division’s major customers. The lack of price

8 ANNUAL REPORT 2021-2022 - BE-GE GROUP

increases had a negative impact on the division’s results for the financial year 2021–22. The poor availability of vehicles linked to the semiconductor shortage had a negative effect on the Be-Ge Vehicle Division, which markets and sells trucks and passenger cars. Demand has been very good during the year, which combined with long delivery times for vehicles resulted in record-breaking order backlogs. The division has succeeded in maintaining profitability through a high level of activity in the after-sales market, with workshop activities and sales of spare parts.

Ett tudelat verksamhetsår

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.

Covid and the war in Ukraine

The fibre laser will be installed in autumn 2022 and is the first machine of its kind in Sweden. The Group continues to develop its sustainability work. In addition to connecting district heating to reduce dependence on oil, various energy-saving measures are being implemented in the companies. In spring 2022, Be-Ge Stece AB decided to invest in a solar cell system with a capacity of around 500 kWh.

ÅRSBERÄTTELSE 2020-2021 - BE-GE KONCERNEN

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.

Change of 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.

The pandemic naturally also had an impact on the Group’s operations in 2021–22. The companies in the Group have, however, been better prepared and adapted their working methods more quickly than when the pandemic began. Digital meetings and presentations instead of attending trade fairs worked well, and there were continued opportunities for employees to work from home. These adjustments made it possible to limit the effects of the pandemic on operations. The Group also followed the recommendations from the authorities in each country in order to reduce the risk of infection.

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.

When the new Omicron variant began to spread, however, infection rates increased sharply, as did absenteeism in the Group’s operations. This affected delivery capacity for some time, resulting in longer delivery times.

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.

The war in Ukraine has not yet affected the Group’s operations. The Be-Ge Group has no customers or suppliers in the area of conflict. Reporting on the effects of the war reveals that Volkswagen has some of its cable production in Ukraine, which means that already long delivery times for vehicles are at risk of becoming even longer. Furthermore, the invasion of Ukraine could have consequences for the global recovery and growth after the coronavirus pandemic. It is at present difficult to discern the potential effects of this.

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.

Continued long-term view

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.

The Group has decided to change its financial year from a split year covering the period 01/05 – 30/04 to adapting the financial year to the calendar year. The change is being made partly because the Be-Ge Vehicle Division’s goals and objectives from the general agents are linked to the calendar year, and to be able to better perform benchmarking with brand colleagues.

Förväntningar på 2021-2022

The change in financial year means that the next financial year will only cover the eight months during the period 01/05 –31/12/2022.

Expectations for 2022

The order situation in the Group’s three divisions remains very good, and there are no signs of a decline in demand at present.

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.

The price increases for raw materials and energy look set to continue, and the importance of being able to pass on the price increases to our customers will also be crucial to the Group’s profitability in 2022.

Work to secure the supply chains of components and raw materials for the Group’s manufacturing units is another prioritised area during the coming financial year.

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.

Fortsatta satsningar och hållbarhetsarbete

Despite the uncertainty in the world at large, the Be-Ge Group continues to invest in the various business areas. In the Be-Ge Vehicle Division, the expansion in Vetlanda that was given the go-ahead in the previous financial year is expected to be completed after the holidays in 2022. This expansion will create the conditions for continued successful truck operations in the Vetlanda region.

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.

During the year, a decision was also made to invest in two additional workshop facilities in Hultsfred. This initiative is being made to meet the higher demand for the truck business’s services that exists within the business area.

Be-Ge Plåtindustri AB has started to expand its factory premises in Oskarshamn. A decision has also been made to invest in a fibre laser, to further automate manufacturing and increase capacity in the operation.

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 i Vetlanda samt nybyggnation av en tvätthall. Inom personbilsverksamheten blir laddbara bilar en allt viktigare del av verksamheten. För att möta det ökade behovet av el i framtiden, som bl.a. drivs av elektrifieringen av fordonsflottan, utvärderas för närvarande förutsättningarna att investera i solceller med placering på divisionens fastigheter.

There are concerns in the world at large that may bring about rapid changes, which may also affect global growth. The availability of components and raw materials, challenges of inflation, developments in Ukraine, together with the possible impact of the pandemic, create uncertainty when assessing the future. But the Be-Ge Group’s strong position, combined with the ability of our employees to adapt quickly to new conditions, means that the company is very well placed to take on new challenges.

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.

9 ANNUAL REPORT 2021-2022 - BE-GE GROUP

Values

Bror Göthe Persson started his business in 1934. The principles that Bror Göthe worked 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.

10 ANNUAL REPORT 2021-2022 - BE-GE GROUP
11 ANNUAL REPORT 2021-2022 - BE-GE GROUP

Five-year summary

INCOME STATEMENT

Amounts in SEK thousand

2021-2022 2020-2021 2019-2020 2018-2019 2017-2018

Net turnover 1 204 109 1 127 397 1 193 983 1 137 670 1 048 095

Gross profit 223 583 207 643 196 551 205 954 199 254

Operating profit 73 969 76 260 49 797 67 158 62 011

Profit after financial items 80 572 79 297 53 700 70 852 65 075

Taxes -15 175 -17 282 -12 283 -15 802 -13 793

PROFIT FOR THE YEAR 65 396 62 015 41 416 55 049 51 282

BALANCE SHEET

Amounts in SEK thousand 2022-04-30 2021-04-30 2020-04-30 2019-04-30 2018-04-30

Intangible assets 7 241 8 772 11 006 12 796 14 296

Tangible assets 263 681 245 668 236 410 232 998 239 289

Financial assets 18 058 20 682 20 774 24 669 19 888

Current assets 547 919 505 543 430 791 428 777 381 773

TOTAL ASSETS 836 899 780 665 698 982 699 240 655 246

Equity 635 380 588 479 531 907 499 971 453 301

Provisions 45 040 48 140 42 333 44 356 44 610

Long-term liabilities 8 904 10 431 10 852 18 031 19 276

Short-term liabilities 147 575 133 615 113 890 136 882 138 059

TOTAL EQUITY AND LIABILITIES 836 899 780 665 698 982 699 240 655 246

12 ANNUAL REPORT 2021-2022 - BE-GE GROUP

KEY RATIOS

13 ANNUAL REPORT 2021-2022 - BE-GE GROUP
Amounts in SEK thousand 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 Profit margin, % 6,7 7,0 4,5 6,2 6,2 Return on active capital, % 13,2 14,1 10,2 14,3 14,9 Return on equity, % 10,7 11,1 8,0 11,5 12,0 Equity ratio, % 75,9 75,4 76,1 71,5 69,2 Investments 45 443 25 387 29 171 14 220 61 472 Cash flow from operating activities 93 254 79 851 59 744 78 836 76 626 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 from May 1 – April 30 0 300 600 900 1200 Turnover 0 100 200 300 400 500 600 Number of employees 0 20 40 60 80 100 Profit after financial items 0 10 20 30 40 50 60 70 80 Equity ratio 0 10 20 30 40 50 60 70 80 Investments 17/18 18/19 19/20 20/21 21/22 17/18 18/19 19/20 20/21 21/22 17/18 18/19 19/20 20/21 21/22 0 200 400 600 800 1000 Balance sheet total and Equity 17/18 18/19 19/20 20/21 21/22 17/18 18/19 19/20 20/21 21/22 17/18 18/19 19/20 20/21 21/22 MSEKNumber MSEK TSEK % MSEK

Management of the Be-Ge Group

Håkan Hjalmarsson

CEO: Be-Ge Företagen AB

MD: Be-Ge Fastigheter AB

Born 1962 Employed: 2017

Thomas Axelsson

MD: All companies in the Be-Ge Seating Division.

Born 1970 Employed: 2019

Henric Arvidsson

General Manager: Be-Ge Frapett AB

Born 1980 Employed: 2022

Erik Lodahl Andersen

General Manager: Be-Ge Seating A/S

Born 1968 Employed: 2019

Paul van der Westen

General Manager: Be-Ge Seating B.V./GmbH

Born 1974 Employed: 2020

Gary Shaw

General Manager: 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 Vaičaitienė

MD: Be-Ge Baltic AB

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

14 ANNUAL REPORT 2021-2022 - BE-GE GROUP

Board of Directors of Be-Ge Företagen AB

Kjell-Arne Lindbäck Member

Born 1952

Lives in Nacka

Board member since 2011–2012

Other assignments:

Board member

Advenio Psykolog- och managementkonsult 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

Byggaktiebolaget

O.G. Ohlsson

Sydostpress AB

Vice Chair of the Board

Gota Media AB

Board member

AB Hjalmar Petri

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

Kjell-Arne Lindbäck, Rickard Petri (Chair), Ingemar Persson, Håkan Hjalmarsson, Johan Persson, Peter Cerny and Ulrica Larsson.
16 ANNUAL REPORT 2021-2022 - BE-GE GROUP

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

Other assignments:

Board member

EB Road Cargo AB

Smålandshamnar AB

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 and Proton AB

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:

Factory Manager Kiviks Musteri AB

Board member

UILa Konsult & Invest AB

Eva Thuresson Mat & Dryck AB

Zetterbergs Industri AB

ANNUAL REPORT 2021-2022 - BE-GE GROUP

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.

Business area and market

The Seating Division’s products are well-known and popular among drivers of commercial vehicles, trucks and buses, forestry and construction machinery, industrial trucks and cranes, train drivers and navigating officers in shipping. For minibuses, vans and special vehicles, M1-classified* passenger seats are delivered for transporting people with or without disabilities, also for ambulance, police and military vehicles. Other groups using the division’s seating products include process operators, staff in security centres and offices.

Driver and passenger seats (M2 and M3)* are developed and final assembled within Be-Ge Seating AB in Oskarshamn, Sweden, while the main responsibility for the development, certification and manufacturing of M1-classified passenger seats takes place at Be-Ge Seating A/S in Frøstrup, Denmark. Be-Ge Frapett AB is responsible for the wide range of office and surveillance chairs, as well as support and saddle chairs. Customised sound absorbers are also available for offices and public environments. The division’s sales units Be-Ge Seating UK Ltd., Be-Ge Seating B.V. and Be-Ge Seating GmbH are responsible for sales and service within each geographical market.

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.

Turnover outside the Group, SEK million

Operating profit, SEK million

Be-Ge Seating Division includes:

* Vehicle class for motor vehicles based on number of passengers and total weight.

Growth in invoicing

Number of employees

18 ANNUAL REPORT 2021-2022 - BE-GE GROUP
Be-Ge Seating AB • Be-Ge Seating A/S • Be-Ge Seating B.V. • Be-Ge Seating GmbH • Be-Ge Seating UK Ltd. • Be-Ge Frapett AB
435
30
9,5%
201
19 ANNUAL REPORT 2021-2022 - BE-GE GROUP Proportion of the Group’s net turnover 0 5 10 15 20 25 30 17/18 18/19 19/20 20/21 21/22 InvestmentsMSEK 0 100 200 300 400 500 Net turnover outside the Group 17/18 18/19 19/20 20/21 21/22 MSEK 0 10 20 30 40 50 17/18 18/19 19/20 20/21 21/22 Operating profitMSEK 0 50 100 150 200 250 17/18 18/19 19/20 20/21 21/22 Number of employeesNumber Be-Ge Frapett AB Be-Ge Seating GmbH Be-Ge Seating B.V. Be-Ge Seating UK Ltd Be-Ge Seating A/S Be-Ge Seating AB Each company’s proportion of the number of employee in the division Each company’s proportion of the division’s turnover

Be-Ge Seating AB

Be-Ge Seating AB develops, manufactures and markets suspended and fixed driver seats, passenger seats and accessories for these. Customer-specific products are also developed on assignment for OEM customers.

The company’s products are well-known and popular with drivers of commercial vehicles, trucks and buses, forestry and construction machinery, industrial trucks and cranes, and all others who sit at their workplaces.

The past year

During the financial year, volumes and turnover recovered on the whole compared with the previous year. This recovery has, however, been limited due to the difficulties of the entire supply chain, both suppliers and customers, in securing deliveries of materials and components. Order intake was at a relatively high, stable level throughout the year. There was a positive impact on turnover with the start of batch deliveries for several new customised seat projects. Additional customer projects were carried out during the year, which will result in seat deliveries during the next financial year.

Continued restrictions for large parts of the year meant that customer meetings primarily took place digitally. A new showroom was built to enable digital product demonstrations.

Over the course of the financial year, the company’s own material supplies were increasingly affected by material and component shortages. The situation has varied very

significantly between different types of material. The primary countermeasures, in order to minimise the effects, have been building up inventory and alternative logistics solutions. Delivery reliability was adversely affected, but to a limited extent.

Purchase prices for materials and components increased significantly during the year, and the company was able to partially compensate for the higher costs through adjusted sales prices and rationalisation work.

Production of the new generation of truck seats, with a mechanical and an air-sprung variant, started during the year, with final assembly now being performed at the company’s facility in Oskarshamn. In the latter part of the financial year, work began to increase the production capacity for the company’s 3000 series seats. Several development projects for new products and rationalisation projects were carried out during the year, which are expected to be launched in the next financial year.

21 ANNUAL REPORT 2021-2022 - BE-GE GROUP
301 Turnover, SEK million 111 Number of employees ADDRESS: Box 912, 572 29 Oskarshamn, Sweden VISITING ADDRESS: Gjutaregatan 4, Oskarshamn PH: +46 491-76 18 00 EMAIL: info.se.seating@be-ge.com WEBSITE: se.seating.be-ge.com CIN: 556156-3643 DOMICILE: Oskarshamn, Sweden Be-Ge Seating Division

Be-Ge Seating A/S

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 vehicles intended for passenger transport, for people with or without disabilities, as well as ambulances, police and military vehicles.

Thanks to continuous investments in testing processes and testing equipment, new technology and product development, the company is one of the leaders in its industry. All tests and certifications of seats, floors and equipment for complete vehicles are performed in approved test facilities either at the company’s own factory in Frøstrup, Denmark or at a thirdparty institute.

The company is also responsible for sales of Be-Ge Seating companies’ product range of driver seats and office chairs in Denmark.

The past year

The year started strongly, and the first five months generated growth in sales compared with the previous year. Unfortunately, imbalances in the supply chains to the automotive industry resulted in delayed deliveries of new vehicles, which had a negative impact on demand for M1 seats. Deliveries improved during the winter, but later in February the situation escalated due to the Russian invasion of Ukraine. Overall, this resulted in a decrease in turnover for the year

compared with the previous year. The company has developed and launched Jany Life Legs Dynamic, a system for quick release of wheelchairs from the floor, and updated the Jany Life Floor system.

During the year, an external wheelchair restraint system in combination with Jany Life Floor was tested and incorporated into Jany Life Floor’s test reports, which means that the two brands can be used together in M1 vehicles.

The 805 Police 1.0 seat model has been upgraded to a version 2.0, with improved space for the police officer’s personal equipment and a flexible belt anchorage system to allow more room for the gun. Ambulance versions of the 862 seat model have been fitted with an adjustable headrest as an option.

A Jany Express Delivery concept has been developed and taken into operation, which means that some of the standard seats can be ordered directly on Be-Ge’s website and dispatched within one working day of receiving the order.

22 ANNUAL REPORT 2021-2022 - BE-GE GROUP
65 Turnover, SEK million 34 Number of employees ADDRESS: Vestergade 63, DK 7741 Frøstrup, Denmark VISITING ADDRESS: Vestergade 63, Frøstrup PH: +45 96 55 67 00 EMAIL: info.dk.seating@be-ge.com WEBSITE: dk.seating.be-ge.com CIN: 51 61 73 12 DOMICILE: Frøstrup, Thisted municipality Be-Ge Seating Division

Be-Ge Seating B.V./GmbH

Be-Ge Seating B.V. has been a Be-Ge company since 2014, having previously been one of the oldest independent sales agents for the BE-GE brand in Central Europe.

Be-Ge Seating B.V. in the Netherlands, together with the subsidiary Be-Ge Seating GmbH in Germany, represents the Be-Ge Seating Division in each country as well as in Belgium and France. With a business focus on being Be-Ge Seating Division’s representative in Central Europe, customers are offered service in the language of their own country and with a local presence. The company sells and represents all seating products and brands of the Be-Ge Seating Division.

The facility offers a complete spare parts warehouse, installation service, and maintenance and repairs. Well-trained staff offer customer-specific seat adjustments and perform assembly of the products according to the customer’s wishes.

The past year

The year started with an increasing order intake thanks to the recovery in the market and active sales work in the Netherlands, Belgium, France and Germany. Order intake remained high throughout the year for all segments, including service and maintenance, which resulted in significantly better profits compared with the previous year.

Invoicing was also higher compared with 2020–21, and thanks to improved efficiency in operations and in the company’s processes, profits stabilised despite higher raw material and energy prices.

The merger of the Belgian operation with the head office in the Netherlands was completed during the year, and the sales team was expanded to better meet the high market demands. A new long-term rental agreement was signed with the owner of the premises in Zaltbommel to secure continued operation at the current central and best location by the A2 motorway.

Continuous improvements to the company’s processes create added value and peace of mind for our customers, as well as prosperity for the Be-Ge Group and its employees.

The company participated in several different driver seat projects, both in the train segment and with different OEM customers. This, combined with an increasing number of enquiries for after-sales market installation of customised seats, creates the conditions for further growth in the future.

25489

23 ANNUAL REPORT 2021-2022 - BE-GE GROUP
72 Turnover, SEK million 31 Number of employees ADDRESS: Van Voordenpark 24, NL – 5301 KP Zaltbommel,The Netherlands VISITING ADDRESS: Van Voordenpark 24, Zaltbommel PH: +31 418-515322 EMAIL: info.nl.seating@be-ge.com WEBSITE: nl.seating.be-ge.com CIN: 110
DOMICILE: Zaltbommel, NL Be-Ge Seating Division

Be-Ge Seating UK Ltd

Be-Ge Seating UK Ltd was established in 2006 to strengthen the Be-Ge Group’s presence in the British Isles. Sales, service and maintenance of all the products are provided from the company’s plant in Derbyshire, England.

Be-Ge Seating UK Ltd markets and distributes the Be-Ge Group’s entire range of driver seats, passenger seats and office chairs in the UK market. The company’s customers are primarily in the automotive industry, with deliveries to buses, trains and emergency vehicles, but also in the forestry industry. There are also deliveries to more specialised segments such as aircraft simulators.

The past year

The financial year 2021–22 was a very challenging year in view of the ever-changing pandemic and the Brexit-related problems that have arisen in the UK in connection with the divorce from the EU. In addition, a number of other obstacles have had to be dealt with, such as problems in global supply chains, raw material shortages and general cost inflation.

All the major vehicle manufacturers had problems with material supplies during the year, and in some cases were forced to close their production facilities. This has meant that new vehicles have been in short supply, and lead times for new vehicles have increased, which has had a negative impact on the company’s deliveries of M1 passenger seats.

Sales to the ambulance and police sector continued to grow during the year. During the financial year 2021–22, the company also had success in the market for vehicles adapted for other medical transport and wheelchair transport, construction machinery, etc.

In January 2022, the business moved into larger warehouse premises, increasing warehouse capacity by a third. This has made it possible to stock more seats with a high turnover rate

and create flexible buffer stocks for customers. The company is now well positioned to face the expected growth in key markets, as the effects of the Covid-19 pandemic gradually decrease.

In the UK market there are opportunities for a higher market share for bus driver seats. The UK’s unemployment levels are currently at historically low levels, and demand for bus drivers has increased. In order to retain bus drivers and reduce the number of sick days they take, there is now greater interest from bus companies in improving the driver environment. Demand has therefore increased for driver seats with greater comfort and better ergonomics, which favours the seats that the Be-Ge Group manufactures and sells.

Higher fuel costs have accelerated the introduction of zeroemission vehicles to meet the demands of end users who want to reduce their dependence on fossil fuels. Involvement in customers’ development of new electric and hydrogen buses, ambulances and police vehicles, construction machinery, etc. is therefore of great importance in order not to lose market shares. Thanks to these collaborations, the company is well positioned when it comes to deliveries of seats to the new vehicle segments that have emerged.

The shortage of new vehicles during the financial year has meant that vehicle owners have held onto existing vehicles for longer, which has benefited the spare parts and servicing business. In the future, there is great potential in both refurbishment and replacement of seats, as fleet owners are increasingly inclined to hold onto their old vehicles.

25 ANNUAL REPORT 2021-2022 - BE-GE GROUPBe-Ge Seating Division
20 Turnover, SEK million 8 Number of employees ADDRESS: Unit 3 The Fulcrum, Lows lane, Stanton, Ilkeston, Derbyshir DE7 4QU, United Kingdom PH: +44 115 989 8750 EMAIL: sales.uk.seating@be-ge.com WEBSITE: uk.seating.be-ge.com CIN: 06026206 DOMICILE: Derbyshire, UK

Be-Ge Frapett AB

Be-Ge Frapett AB develops, manufactures and markets office and surveillance chairs, support and saddle chairs, and sound absorbers. The product portfolio includes the “Swedish Chair” and the “Ullman Chair” along with BE-GE and Frapett, which are sold under the BE-GE brand.

The past year

Despite high material and logistics costs, as well as some delays in material supplies and at times relatively high staff absence due to the pandemic and its restrictions, the company is showing both growth and improved profits.

Thanks to the excellent efforts of all employees and the utilisation of overtime, the company has usually managed to keep to its promised delivery times. “Made in Scandinavia” has been a major competitive advantage during the years of the pandemic.

During the year, the company hired a new site/sales manager.

As of 1 January 2022, a general price adjustment of +4.8% was implemented to partially compensate for the earlier trend in material prices. However, the company is noticing new inflation-driven price increases from its suppliers at the beginning of the calendar year 2022.

This will bring about a need for further price adjustments to the company’s customers during the financial year 2022.

All marketing and sales of the company’s products take place under the BE-GE brand and the motto “Seats for life”. The Nordic region and the rest of Europe and the UK are considered to be the company’s home market.

Customers are in the office retail trade, catalogue and e-commerce companies, as well as interior design companies and independent retailers. The company’s associate companies in the Be-Ge Seating Division in Denmark, the Netherlands and Germany, as well as the UK, act as sales agents for Be-Ge Frapett’s product range in their respective markets.

Turnover,

sales@frapett.se

Mönsterås,

26 ANNUAL REPORT 2021-2022 - BE-GE GROUP Be-Ge Seating Division
33
SEK million 17 Number of employees ADDRESS: Södra vägen 7 SE- 383 34 Mönsterås PH: +46 499 448 90 EMAIL:
WEBSITE: office.seating.be-ge.com CIN: 556459-2375 DOMICILE:
Sweden

Expected outlook for the division in 2022

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.

During the year, the division’s companies were successful in adapting their operations to the rapid changes that have taken place in the world around them. The current uncertainty regarding issues such as expectations of inflation and the availability of raw materials will continue to present challenges going forward. Nevertheless, the division expects to be able to grow in financial year 2022.

The Be-Ge Seating Division’s strategy plan and the activity plans drawn up are well known within each organisation. The focus is on acquiring new market shares in specific segments

and achieving general growth and a continued positive development in profitability.

The product-owning Be-Ge Seating companies will continue to allocate significant resources for product development and product maintenance, and to capitalise investments in production tools and equipment.

The “Seats for life” marketing campaign is intended to make Be-Ge better known, define what sets us apart from others and position Be-Ge where our customers expect us to be. The BE-GE brand is there for those customers who understand and value the difference.

The Nordic region and the rest of Europe (EU/EEA/EFT) and the UK continue to be the Be-Ge Seating Division’s home market.

27 ANNUAL REPORT 2021-2022 - BE-GE GROUPBe-Ge Seating Division

Be-Ge Component Division

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

Business area and market

Be-Ge Stece AB is one of the leading manufacturers in Sweden of components for trucks, passenger cars and machinery, as well as consumer products in areas such as heating technology, electronics and white goods.

Be-Ge Plåtindustri AB manufactures advanced laser-cut, pressed, welded and even deep-drawn products, and also has rolling and roll-forming of cones and cylinders in metallic materials for customers, primarily in the construction machinery, automotive and pump industries.

Be-Ge Lackering AB’s business consists of vehicle paintwork, plastic repairs and anti-corrosion treatment of vehicles, as well as painting industrial components, for both companies and private customers.

Be-Ge Baltic UAB undertakes industrial sewing and upholstery, as well as partial and final assembly of components on contract assignments for customers in the manufacturing sectors of automotive, office, conference and surveillance chairs, MedTec articles and other textile products.

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 costeffective 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.

Turnover outside the Group, SEK million

Operating profit, SEK million

Be-Ge Component Division includes:

Be-Ge Stece AB

Be-Ge Baltic UAB

Be-Ge Plåtindustri

Be-Ge Lackering

Growth in invoicing

Number of employees

28 ANNUAL REPORT 2021-2022 - BE-GE GROUP
AB
AB
237
29
27%
215
Be-Ge Plåtindustri Each
29 ANNUAL REPORT 2021-2022 - BE-GE GROUP Proportion of the Group’s net turnover 0 50 100 150 200 250 Net turnover outside the Group 17/18 18/19 19/20 20/21 21/22 MSEK 0 5 10 15 20 25 30 17/18 18/19 19/20 20/21 21/22 Operating profitMSEK 0 5 10 15 20 17/18 18/19 19/20 20/21 21/22 InvestmentsMSEK 0 50 100 150 200 250 17/18 18/19 19/20 20/21 21/22 Number of employeesNumber
Baltic UAB Be-Ge Lackering AB Be-Ge
AB Be-Ge Stece AB Each company’s proportion of the number of employee in the division
company’s proportion of the division’s turnover

Be-Ge Stece AB

Be-Ge Stece AB supplies components for trucks, passenger cars and machinery, as well as parts for consumer products in heat technology, construction, electronics and white goods.

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.

Manufacturing is carried out in efficient, robotised eccentric and hydraulic presses. The company has in-house capacity for hardening, tempering and electrolytic surface treatment.

Welding is offered in both manual and robotic processes. The company’s high level of service and quality is proven by renewed certificates against IATF 16 949, and confirmation that the processes are sustainable comes in the form of the company’s ISO 14001 certification.

The past year

The year started with very high demand from all customer segments. The order backlog increased by 50% in spring compared with the previous year. To make deliveries in accordance with our customers’ expectations, we hired staff

and also recruited young people to do summer jobs. The shortage of materials that started to affect operations during the spring escalated during the autumn, and the prices of steel and other metal products also increased significantly. The company’s customers also experienced disruption caused by material and component shortages, and some of them were forced to reduce their rate of production and even introduce shutdown days in their production. Demand did, however, remain stable even into the last quarter of the calendar year 2021. The steep increases in material prices have been passed on to customers through price increases. There have been several rounds of price increases all the way to the end of this financial year. There was a drop in demand during the last quarter of the financial year. Here too, it is the shortage of materials that resulted in a fall in demand, a shortage that has been further exacerbated by the war in Ukraine. Much of the focus was on supplying existing customers with goods; business with existing customers increased in volume during the year, but some completely new customers were been added.

Turnover, SEK million

30 ANNUAL REPORT 2021-2022 - BE-GE GROUP
131
60 Number of employees ADDRESS: Box 502, 383 25 Mönsterås, Sweden VISITING ADDRESS: Industrigatan, Mönsterås PH: +46 499 160 00 EMAIL: info@stece.se WEBSITE: stece.be-ge.se CIN: 556048-2746 DOMICILE: Mönsterås, Sweden Be-Ge Component Division

Be-Ge Plåtindustri AB

Be-Ge Plåtindustri 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. The company is an innovative partner and provides the customer with support and cost-saving suggestions during the development phase. Production also consists of CNC-controlled edge presses for rational bending of sheet metal components. In addition, the company has equipment for rolling and roll forming, as well as robot welding cells, one of which has double robots. Skilled welders, a number of them licensed, also perform longitudinal and circular welding and assembly.

The past year

The whole financial year was characterised by a very strong economic upturn with a largely constant increase in demand. This high demand meant that a capacity shortage arose in the workshop, which resulted in turn in longer lead times in production. On top of this, there are problems with material supplies and steeply rising raw material prices. The company has largely succeeded in passing raw material price increases on to customers. This, combined with diligent work to increase capacity, has resulted in the financial year being the best in

the company’s history. A decision was made during the year on a powerful investment plan, comprising an expansion of the workshop and major investments in machinery.

During the year, a new customer, which is active in the renewable energy sector, placed a production order with the company. If the customer develops in accordance with the established business plan, it may become an important customer for Be-Ge Plåtindustri AB in the future.

556223-1430

Oskarshamn, Sweden

33 ANNUAL REPORT 2021-2022 - BE-GE GROUP
117 Turnover, SEK million 54 Number of employees ADDRESS: Box 518, 572 25 Oskarshamn, Sweden VISITING ADDRESS: Södra Fabriksgatan 4, Oskarshamn PH: +46 491 76 68 80 EMAIL: plat@be-ge.se WEBSITE: bpi.be-ge.se CIN:
DOMICILE:
Be-Ge Component Division

Be-Ge Baltic UAB

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.

The company is certified in accordance with ISO 9001 and ISO 14001, and is also an FSC-certified company. LEAN manufacturing methods are applied in all of the company’s processes.

Be-Ge Baltic UAB has a geographically advantageous location in Klaipeda at the northernmost ice-free port in the Baltic region.

The past year

Be-Ge Baltic started the financial year with a high, intensive level of operations and an ever-growing backlog of orders and quotations. The year was also characterised by fluctuations in individual customer orders, disruption in the supply chain, a shortage of certain components, exceptionally high

price increases and the ongoing pandemic. Despite these challenges, Be-Ge Baltic was successful in balancing the production load, thanks to its diversified operations and highly committed employees. This has resulted in the year ending with an increase in turnover of 20% compared with the previous year and a continued strong financial position.

The major increase in turnover can be explained both by new projects and a gradual increase in turnover from the company’s existing customers. The achievement of goals in other areas was also very good. The number of returned under complaint is below 0.1%. In addition to this, and very pleasingly, our continued strong focus on close collaboration with customers, in order to be able to act together in the event of any disruption or changes, resulted in an even higher level of customer satisfaction, which this year reached no less than 98%.

baltic.be-ge.se

141195074

Klaipeda, Lithuania

Turnover, SEK million Number of employees
34 ANNUAL REPORT 2021-2022 - BE-GE GROUP
33
85
ADDRESS: Pramons g. 27 LT-94103 KLAIPEDA, Lithuania PH: +370 46 474 150 EMAIL: baltic@be-ge.se WEBSITE:
CIN:
DOMICILE:
Be-Ge Component Division

Be-Ge Lackering AB

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 car 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. The company is a member of the Swedish Association for Motor Retail Trades and Repairs and is certified in accordance with ISO 9001.

The past year

The beginning of the financial year was stable but uneven, with high demand from industrial customers, while it was quieter in the private market and for painting of car damage. The car business worked hard to increase capacity utilisation, which resulted in a couple of new customers and business deals being brought into the department in the spring and early summer of 2021. After the holidays, the surrounding

workshops also increased their capacity for repairing sheet metal damage, which contributed to the rise in demand.

The industrial business had high capacity utilisation until July, when demand from the company’s biggest customer failed to materialise. This was in turn due to the customer extending the holiday period because of component shortages. The restart after the summer and the early autumn were also characterised by low capacity utilisation in industrial painting, while the automotive department saw a positive trend in demand.

Demand in the industrial business did, however, rise at the end of the calendar year and in the winter, and remained stable at a good level for the rest of the financial year. The team managed to handle the fluctuations and imbalances between the company’s two painting facilities in an exemplary manner, and through flexible solutions around holidays and by helping each other, we achieved 100% delivery precision to customers during the year.

Turnover, SEK million

Number of employees

36 ANNUAL REPORT 2021-2022 - BE-GE GROUP Be-Ge Component Division
20
16
ADDRESS: Inkörningsvägen 3, 572 36 Oskarshamn, Sweden VISITING ADDRESS: Inkörningsvägen 3, V. Industriområdet PH: +46 491 45 46 30 EMAIL: info.lack@be-ge.se WEBSITE: lack.be-ge.se CIN: 556132-8625 DOMICILE: Oskarshamn, Sweden

Expected outlook for the division in 2022

Capacity utilisation was high during the year, which resulted in capacity shortages at times, meaning longer delivery times. The confirmed investments in both buildings and machinery at Be-Ge Plåtindustri AB will address the capacity shortages and also create opportunities for new business.

The division continues to invest in automation solutions to further streamline production processes. This is a prerequisite for being able to meet the continued high demand from both existing and new customers.

The price increases implemented by the division’s raw material suppliers in the previous financial year appear to have peaked. But prices continue to increase in areas

such as energy and freight, price increases for which it is important that companies can receive compensation from their customers. As part of both reducing energy costs and contributing to a sustainable future, a solar cell system will be installed at Be-Ge Stece AB.

There are many uncertainties in 2022. Expectations of inflation, supply chain disruption due to the Covid pandemic, the war in Ukraine and interest rate hikes could have a negative impact on global demand and growth. At present, there are no indications that this would affect the Component Division’s companies, which continue to have a good order backlog and capacity utilisation.

37 ANNUAL REPORT 2021-2022 - BE-GE GROUPBe-Ge Component Division

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.

Business area and market

The division’s brands, Scania, Volkswagen and Skoda, manufacture cars of the absolute highest quality for each area of use. The companies are responsible for representing the brands within a market area that extends from Vetlanda in the west to Visby in the east. Passenger cars (Volkswagen, Volkswagen Transporter and Skoda) are marketed from Oskarshamn and Vetlanda, while trucks and buses are marketed in Hultsfred, Oskarshamn, Vetlanda and Visby. Sales, servicing, repairs and other services are available at all locations.

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.

Turnover outside the Group, SEK million

Operating profit, SEK million

Growth in invoicing

Number of employees

Be-Ge Vehicle Division includes: Be-Ge Personbilar AB • Be-Ge Lastbilar AB Be-Ge Frysen AB • Be-Ge Fordonsfinans AB
38 ANNUAL REPORT 2021-2022 - BE-GE GROUP
529
21
- 2%
102
Be-Ge Be-Ge
39 ANNUAL REPORT 2021-2022 - BE-GE GROUP Proportion of the Group’s net turnover 0 100 200 300 400 500 600 700 800 Net turnover outside the Group 17/18 18/19 19/20 20/21 21/22 MSEK 0 5 10 15 20 25 17/18 18/19 19/20 20/21 21/22 Operating profitMSEK 0 5 10 15 20 25 30 17/18 18/19 19/20 20/21 21/22 InvestmentsMSEK 0 20 40 60 80 100 120 17/18 18/19 19/20 20/21 21/22 Number of employeesNum,ber
Personbilar AB
Lastbilar AB Each company’s proportion of the number of employee in the division Each company’s proportion of the division’s turnover

Be-Ge Lastbilar AB

Be-Ge has represented Scania trucks since 1941, and is the world’s oldest privately owned sales agent for Scania.

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.

The past year

The financial year has seen a good order intake for new Scania trucks for most of the year, before stagnating in early 2022 as a consequence of unrest in Europe. Demand for service and repair services has also been high and looks set to be maintained going forward. New services such as training, service agreements, vehicle inspections, etc. continue to increase and be important to truck customers.

During the year, the company’s focus on agreements and vehicle inspections resulted in increased availability of customers’ vehicles, meaning enhanced service to haulage companies’ customers.

Despite the pandemic and the recent crisis caused by the invasion of Ukraine, haulage companies have seen good demand for transport and logistics services during the year. Over the years, the well-established and very good relationship with the company’s customers has resulted in both high customer satisfaction and continued healthy sales of vehicles and after-sales market services, despite the fluctuating economy. Be-Ge Lastbilar AB continues to enjoy a high level of confidence and is the market leader in the company’s market area.

Marketing activities are a cornerstone of building relationships with the company’s customers. Physical activities can start to take place once more, and these are complemented by the new digital activities created during the pandemic.

Södra Fabriksgatan 12, Oskarshamn

556092-6643

Turnover, SEK million Number of employees
41 ANNUAL REPORT 2021-2022 - BE-GE GROUPBe-Ge Vehicle Division
300
65
ADDRESS: Box 908, 572 29 Oskarshamn, Sweden VISITING ADDRESS:
PH: +46 491 76 15 00 EMAIL: info@bil.be-ge.se WEBSITE: www.be-ge.nu CIN:
DOMICILE: Oskarshamn, Sweden

Be-Ge Personbilar AB

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.

The past year

The financial year 2021–22 has been challenging, with a coronavirus pandemic and, at the end of the financial year, the Russian invasion of Ukraine. The coronavirus pandemic has created problems in the supply chains for vehicle manufacturers, as access to semiconductors in particular has been limited. There have, however, also been problems with raw material supplies, such as steel, which has resulted in a steep increase in prices. Overall, this has had a negative impact on the production of new cars. After Russia’s invasion in Ukraine, the availability of cabling has decreased, which further affects vehicle production.

Be-Ge Personbilar AB has therefore found itself in a situation that has created continued long lead times and delivery times for new cars to waiting customers. Despite this, sales during the financial year remained good, with high volumes and, as in the previous year, a record level in the order backlog for new cars.

The after-sales market and repair workshops had good capacity utilisation during the year. This is explained by high sales of new cars in recent years, which has created opportunities to serve a greater number of customers and cars. During the year, the focus continued to be on working with customer satisfaction and various relationship-building measures. By constantly striving for a good customer relationship, the conditions are created to continue to be a leading sales agent in the company’s region.

Turnover,

Södra Fabriksgatan 12, Oskarshamn

556061-4298

42 ANNUAL REPORT 2021-2022 - BE-GE GROUP Be-Ge Vehicle Division
242
SEK million 37 Number of employees ADDRESS: Box 908, 572 29 Oskarshamn, Sweden VISITING ADDRESS:
PH: +46 491 76 15 00 EMAIL: info@bil.be-ge.se WEBSITE: www.be-ge.nu CIN:
DOMICILE: Oskarshamn, Sweden

Expected outlook for the division in 2022

It is considered that delivery times for new vehicles will continue to be long for the remainder of 2022.

In the Scania business, the delivery time for a new truck is currently as much as 14 months, and the order backlog for new trucks is at a record high. The long delivery times risk reducing market shares, but Be-Ge Lastbilar AB’s strong brand means that we will continue to be the market leader.

In the financial year ahead, Be-Ge Personbilar AB expects to be able to deliver from its record-high order backlog and thereby gradually reduce this.

Developments in the industry are moving rapidly in terms of which drivelines the vehicles will have in the future. In the passenger car segment, 50% of all cars sold are rechargeable cars, i.e. electric vehicles or plug-in hybrids. On the truck side, the trend is not moving as quickly towards electrical power, but other fuels such as gas, HVO, LNG, etc. are being developed here, all with the aim of reducing the impact on the environment.

The servicing requirements of the new rechargeable cars are less than those of vehicles with internal combustion engines. For this reason, new and supplementary services are being developed for passenger cars and trucks, to meet the falling demand for workshop services.

43 ANNUAL REPORT 2021-2022 - BE-GE GROUPBe-Ge Vehicle Division

Be-Ge Fastigheter AB

Be-Ge Fastigheter AB owns commercial properties in central Oskarshamn, consisting of premises for shops and offices, industrial premises and homes. The total area managed amounts to approx. 6,800 m2

The past year

During the financial year, all homes and most of the company’s premises were occupied. Vacancies are only available to a lesser extent in the office hotel, with only one of the premises available to let.

Property maintenance is performed according to plan and as required in connection with new lettings.

The work to make Köpmangatan more vibrant continued during the year. This has resulted in a couple of new businesses being established and increased attractiveness, which is positive for the part of Be-Ge Fastigheter AB’s portfolio located along this street. In order to increase accessibility to the premises on Köpmangatan, the company has decided to invest in ramps at the entrances.

3Net sales, SEK million

0Number of employees

ADDRESS: Box 912, 572 29 Oskarshamn, Sweden VISITING ADDRESS: Köpmangatan 6 A , Oskarshamn

PH: +46 491 45 46 10 EMAIL: fastigheter@be-ge.se WEBSITE: fastigheter.be-ge.se CIN: 556773-0774

DOMICILE: Oskarshamn, Sweden

44 ANNUAL REPORT 2021-2022 - BE-GE GROUP

Be-Ge’s development

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.

1941

Be-Ge became a sales agent for Scania-Vabis trucks and is now the world’s oldest Scania agent in private ownership.

1946

AB Be-Ge Karosserifabrik was established.

1949

The first modern suspended driver seats for trucks were developed.

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

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.

1987

Be-Ge Förarmiljö AB in Kolsva was established, specialising in the sale of driver seats and equipment primarily for forestry machines.

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.

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.

1996

Be-Ge Industri AB was certified in accordance with ISO 9001.

1999

The vehicle companies were certified in accordance with ISO 9002.

2000

The business activities in Umeå were moved to Oskarshamn, and the industrial property was sold.

2001

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

2002

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

2003

The two Danish companies Jany A/S and Vald. Nielsen A/S were merged, and the Copenhagen office was closed down. The rights to market and sell the “Ullman Chair” were acquired in the same year.

46 ANNUAL REPORT 2021-2022 - BE-GE GROUP

2005

An extensive refurbishment and expansion of the passenger car plant in Oskarshamn was undertaken. Be-Ge Traktor & Maskin i Åstorp AB was sold.

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.

2007

Be-Ge Företagen AB increased its shareholding in Stece AB to 50%.

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.

2009

Be-Ge Personbilar AB celebrated its 75 anniversary. Be-Ge Fastigheter AB was established.

2010

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

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.

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. The property Järneken 5 was acquired to secure the future need for assembly capacity for seats in Oskarshamn.

2018

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

2019

In order to identify the core business, all companies in the BeGe Seating Division were renamed as Be-Ge Seating followed by each country’s company name.

2021

Be-Ge Mönsterås Pressdetaljer AB’s industrial property was sold through the sale of the company.

Bror Göthe Persson, founder of the Be-Ge Group
47 ANNUAL REPORT 2021-2022 - BE-GE GROUP
www.be-ge.se

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
Annual Report 2021/22 by Be-Ge - Issuu