Annual report 2016

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KUNDFOKUS

Innovation

GOD KEMI Innovation

commitment

ANNUAL REPORT

2016 KVALITET

2 • WIBAX

CONTENTS Statement by the CEO ........................................ 6 Administration Report....................................7–11 Financial Overview........................................12–14 Income Statement .............................................15 Balance Sheet..............................................16–17 Cash Flow Statement ........................................18 Accounting Principles and Notes to the Financial Statements . ............................19 Notes.............................................................20–27 Audit Report . .............................................. 28-29 Board of Directors and Management Team..... 30

WIBAX • 3

MARKET

WIBAX HEAD OFFICE WIBAX OFFICE

Kiruna

WIBAX TERMINAL FOR LIQUID PRODUCTS

PITEÅ

WIBAX TERMINAL FOR DRY PRODUCTS

Skellefteå

Vaasa

Ånge Härnösand Gävle Borlänge Frövi Stockholm

Karlstad Herre Uddevalla

Norrköping Skövde

Falkenberg Alvesta Viborg

4 • WIBAX

Malmö

Pietarsaari Jakobstad

Örnsköldsvik

Östersund

Rauma

Tempere Kotka

GOOD CHEMISTRY GOES ALL THE WAY BUSINESS CONCEPT Our business concept is to sell, purchase, process and distribute chemical products to the basic industries in Europe.

STRATEGY We have specialised expertise and resources in the field of liquid chemical products. Imports take place directly from the producer for our own production of directly-customised products, or to centrally located tanker terminals with our own logistics solution for the end customer. The company’s strategy is also to implement and optimise utilisation of the product with the end customer.

$FKLOOHV -46

WIBAX • 5

STATEMENT BY THE CEO

WIBAX CELEBRATES ITS 30TH ANNIVERSARY Wibax celebrated its 30th anniversary this year and our celebrations kicked off with a fantastic party in Piteå in conjunction with SM-veckan. Wibax signed up as an official partner of Destination Piteå and SM-veckan and was the main sponsor of a large service tent in the centre, called ‘Kultur-tältet

by Wibax’. We also helped to heat the tent using bio-energy. It was a really successful event, with lots of visitors.

Wibax is working to achieve sustainable development, optimum utilisation of resources and the best alternatives from an environmental perspective. Efficient logistics solutions are an important part of this, where we are working actively for fossil-free transportation. In 2016, 25% of our total fuel consumption was based on fossil-free fuel.

Fair Transport is also a natural part of our business and provides very safe transportation, as well as good working conditions for our drivers.

We continued to invest in our terminals during the course of the year, initiating measures such as conversion to fossil-free heating. This forms part of our sustainable development work and we anticipate converting several more terminals during 2017.

We have also made further investments in our production, significantly improving capacity, quality and delivery performance.

Products of a more technologically advanced nature represent an area of particular interest to WIBAX and we have formed a new specialist company within the Group so as to better meet the needs of these customers. Wibax Tech and Wibax Performance Chemicals have merged to form one company, Wibax Performance Chemicals, enabling them to deliver even better products and services.

At the beginning of the year, Mikael Kvist took up his post as the new Managing Director of Wibax OY. Mikael has the drive and knowledge that we and our customers need. We have ambitious expansion plans for Finland and we see great potential for success here.

Overall, 2016 was a year of strategic investments and organisational changes and we are already beginning to see the effects. All of this, together with the high level of commitment throughout the Group, demonstrates that we are well on the way to achieving our established goals.

Piteå, February 2017

Jonas Wiklund

6 • WIBAX

WIBAX AB 556262-9674

The Board of Directors and the CEO hereby submit the annual accounts and consolidated accounts for the financial year 01/01/2016 – 31/12/2016.

ADMINISTRATION REPORT WIBAX GROUP WIBAX AB

WIBAX Logistics AB

WIBAX Tech AB

WIBAX Industrial AB

WIBAX Performance Chemicals AB

WIBAX Biofuels AB

WIBAX OY

WIBAX AS

WIBAX ApS

NATURE AND FOCUS OF OPERATIONS The Wibax Group’s core operations are the sales, imports, production and distribution of chemicals, particularly liquid products in bulk. The Group will continue to strengthen its market positions with its existing operations.

OWNERSHIP The Wibax group is 100 per cent owned by Bo Wiklund, Jonas Wiklund, Andreas Wiklund and David Wiklund.

WIBAX AB The parent company was registered in 1986, and the company headquarters are located in the company’s own properties in Piteå. The properties include offices, production premises, warehouses, workshops and wash halls. The parent company is responsible for purchasing, production, stockholding, sales, administration, quality and the environment, as well as safety and protection.

WIBAX Logistics AB Wibax Logistics is a wholly owned subsidiary of Wibax AB, whose main task is to meet the Group’s land transportation needs, but also performs some external logistics operations.

The company’s vehicles are of a very high standard and quality and the personnel are experienced and competent. The company is one of the most comprehensive tanker transportation companies in Sweden, with the capacity to transport most common chemicals for the processing industry. Wibax Logistics AB is also responsible for the operation and maintenance of the Group’s terminals.

WIBAX Tech AB Wibax Tech is a wholly owned subsidiary of Wibax AB and is at the head of the group, providing support for new commercial products and technology. The development of new applications is a priority area that enables significant growth for the Group. The company also supports customers with product implementation and equipment for optimising their processes.

WIBAX Industrial AB Wibax Industrial is a wholly owned subsidiary of Wibax AB and complements Wibax’s other operations. Its main mission is to add value to Group sales by offering complete solutions for system cleaning and other cleaning operations. In addition, the company operates as a mechanical and technical partner

for our production and terminals with sound knowledge of mechanics, concrete and surface protection. Wibax Industrial carries out service and maintenance assignments within a wide range of areas in industrial environments and using high-tech products is able to prevent, renovate and protect equipment made from metal and concrete.

WIBAX Performance Chemicals AB Wibax Performance Chemicals AB is a wholly owned subsidiary of Wibax AB. The company offers a broad spectrum of special and performance chemicals. The focus is on products for industrial water and process treatment, primarily in the fields of corrosion, deposition and microbiology control as well as self-produced anti-foaming and chemical cleaning products.

This is possible in part thanks to our cooperation agreement with GE Water & Process Technologies, as well as through products we have developed ourselves.

WIBAX Biofuels AB Wibax Biofuels AB is a wholly owned subsidiary of Wibax AB, offering bio-oils mainly for incineration, technical skills for implementation as well as optimisation.

WIBAX OY Wibax OY is a wholly owned subsidiary of Wibax AB and is a sales company that works mostly with the pulp and paper industry, mining and metal industry, as well as with products for water treatment and road maintenance in Finland.

WIBAX AS Wibax AS is a wholly owned subsidiary of Wibax AB and was set up in connection with the signing of our cooperation agreement with GE Water & Process Technologies. The company focuses on products for industrial water and process treatment, primarily in the fields of corrosion, deposition and microbiology controls.

WIBAX ApS Wibax ApS is a wholly owned subsidiary of Wibax AB and was set up in connection with the signing of our cooperation agreement with GE Water & Process Technologies. The company focuses on products for industrial water and process treatment, primarily in the fields of corrosion, deposition and microbiology controls.

WIBAX • 7

GROUP OPERATIONS

PRODUCTION

Wibax Tech and Wibax Performance Chemicals merged during the year to form one company called Wibax Performance Chemicals. The two companies have been working very closely for a long time and this merger gives us a specialist company within the Group that is even better equipped to meet customer requirements for technologically advanced products and services. The company currently has four project engineers and six sales staff.

During the past year, we have invested in the production of our self-produced products to further increase production capacity. These investments have also helped to increase the quality of our end products and improve delivery performance.

Wibax has increased its expertise within Lean work, which has brought many positive effects. One of the most important of these is commitment within the organisation, which is often the key to positive change. Commitment triggers a process of suggested improvements, resulting in a good work environment and a cost-effective production organisation.

We have now received an environmental licence for the terminal in Skutskär, which means that the plant will be able to store a range of chemicals. There are 10 storage tanks in total at the terminal in Skutskär where we currently store two different products. We are planning to bring additional storage tanks into use during spring 2017. The terminal is strategically important for Wibax and is situated in a very interesting location from a logistical perspective.

Another element of sustainable transport is Fair Transport. This is a natural part of operations for Wibax Logistics, as we work to establish safe and climate-friendly driving, while also emphasising the importance of good working conditions for our drivers.

At the beginning of the year, we welcomed Mikael Kvist as the new Managing Director of Wibax OY. Mikael will be responsible for operations in Finland. The expansion plans for Finland are progressing and we have begun the recruitment process for a new Account Manager, who will take up their post in early 2017.

INVESTMENTS We have increased the number of storage tanks at many of our terminals, enabling us to accept several types of products and become even better at meeting our customers’ needs. The investments in our terminals also mean that we will be even better equipped for the future and will be closer to our customers, which is in line with our efforts to achieve sustainable and environmentally friendly logistics. Another step forward in our sustainable development is that we have converted one of our terminals to be heated using bio-oils, with our remaining terminals set to follow suit during 2017.

We have also invested in measures to increase capacity in production, which will also strengthen delivery performance and increase quality.

8 • WIBAX

MARKET Looking at the 2016 operating year from a general perspective, demand has been stable and most sectors express optimism for the future. Our largest customer segment, pulp and paper, is making considerable investments in order to increase production volumes. As in previous years, our supply of raw materials has worked well, as we have seen a number of structural changes at our suppliers. During the year, Wibax has succeeded in satisfying market demand and has managed to exploit the opportunities that presented themselves when our customers were looking for competitive alternatives. Price trendshave in general been modest during the operating year, where a slight price increase has been noted and accepted by the market.

EXPECTED FUTURE DEVELOPMENT This year has been marked by strategic investments and decisions that are expected to have an impact in the near future.

Licences for our activities, and particularly for terminals, are a factor that has proven to play a significant role in terms of our potential to succeed and develop. We received a number of operating licences during the year, enabling us to commence operations, but there are some we are still waiting for, including for the Malmö terminal. We expect to receive further operating licences during 2017.

Aside from licences, we are continuing to invest in sustainability, with a major focus on biofuels in particular.

QUALITY, SAFETY AND ENVIRONMENT Licence issues and communication with the authorities for several of Wibax’s terminals have been an important and significant part of our work in 2016 and will continue to be so during 2017. We had a licence granted for the terminal in Skutskär during the autumn and have delivered products mostly to customers in the local area. We have received a licence for flammable materials in Malmö, enabling us to store flammable products for our customers. The environmental licence process for expanded storage in Malmö is ongoing. There are plans to increase production in Piteå and initial consultations have been held. Wibax is proactive when it comes to safety issues and during the year we have also provided training to our customers in the safe handling of chemicals.

ENVIRONMENTAL IMPACT Wibax’s operations involve a significant amount of transport, both by boat and truck, which has an environmental impact in the form of air emissions. We take active steps on several fronts to reduce our emissions. Wibax currently has eight strategically located sea terminals around Sweden that enable us to store our products as close as possible to the end customer and we are also working on efficient logistics solutions to further reduce our transportation on land.

A further measure to reduce our fossil carbon dioxide emissions is the use of renewable fuel in our trucks. During 2016, the proportion of renewable fuel was 25% of total fuel consumption, and the goal is to increase this in the coming years to reduce our environmental impact. Our drivers are given ongoing training in resource-efficient driving, which reduces fuel consumption and environmental impact.

At three of our terminals we store products that require heated storage tanks, which have previously been heated by burning fossil oil and using electricity. In 2016, Wibax applied for and received a grant from Klimatklivet to convert from fossil heating to burning bio-oils. So far the plant in Skelleftehamn has been converted, and the remaining two plants will be converted during 2017.

OPERATING LICENCES Wibax is engaged in the production and storage of chemicals that are subject to licence. The production unit in Piteå is a class A facility and has a licence for the production and storage of chemicals. Our depots in Skellefteå, Örnsköldsvik, Härnösand, Skutskär, Norrköping and Uddevalla are class B facilities where we have licences to handle and store chemicals.

Our depot on Haraholmen, Piteå, is a class C facility where we operate under a reporting requirement. In June 2014, Wibax invested in a terminal facility in Malmö where we currently have a reporting requirement (class C facility) and the licence process for a class B facility is in progress. Our licences are of the utmost importance in order to be able to conduct the type of activities that we do.

WIBAX TECH AB Several preliminary studies have been conducted during the year for the purpose of increasing the proportion of our self-produced products. These projects are ready to be activated as soon as market conditions are optimal. Product development of silicone-based anti-foam agents has resulted in new, improved qualities. Wibax Tech has adapted the department in order to offer the best support for the new sales organisations within the Wibax Group.

WIBAX • 9

WIBAX PERFORMANCE CHEMICALS AB

WIBAX LOGISTICS AB

Wibax Energy has during the year changed its name to Wibax Performance Chemicals in preparation for a reorganisation in 2016. From 2016, all bio-oils are transferred to a single company, with Wibax Performance Chemicals restructured into a company with a more exclusive focus on speciality chemicals.

Through our cooperation agreement with GE, we can offer our customers a wide range of speciality and performance chemicals. With a focus on growth, we are also working on new commercial products and we are seeing increased interest in most of our self-produced products.

The year 2016 has been marked by continued development.

A good example of this is the ongoing investment in the new terminals to create a necessary basis for the Group’s continued growth.

WIBAX BIOFUELS AB Wibax Biofuels continued to grow during the year. Last year’s reorganisation, which saw the company take over the bio-oils previously sold by Wibax Performance Chemicals, has been extremely successful and enabled us to refine the business and focus on bio-oils.

Investments in vehicles continued according to plan and in accordance with our ambition to have a modern vehicle fleet that is well adapted for our activities and offers high efficiency, reliable delivery and the lowest environmental impact possible.

An important element of this work has been the adaptation of the vehicle fleet to the new regulatory framework for higher gross weight, conversion work that will continue in 2017. An innovation this year is that we now have our own vehicles based at the terminal in Skutskär.

The market has been affected by the price of fossil oil, however, which has reduced the incentive and led to the postponement of many investments in conversion. We nevertheless remain optimistic about growth, as there is a clear ambition to phase out and replace fossil fuels with biofuels, particularly within the industrial and transport sectors.

Silvex, which was acquired in 2015, has been incorporated into the company and we have seen strong growth thanks to increased sales of tall oil pitch. This is an important investment, as we supply bio-oils mainly for incineration and pitch oils are a good fit for our product portfolio.

The Wibax terminals in Skutskär and Norrköping are strategically important and we are investing in more storage tanks in 2017 to enable us to store more types of bio-oils. The number of storage sites for bio-oils increased during the year with the addition of Rauma in Finland.

WIBAX INDUSTRIAL AB Wibax Industrial offers complete solutions for service and maintenance, cleaning and surface protection of metals and concrete.

Together with Wibax Biofuels, we also offer a complete solution for converting various furnaces from fossil fuel to biofuel.

We help with the installation, start-up, optimisation and evaluations. We can also provide project managers for external assignments. During the year we carried out a number of major concrete and maintenance operations and installation work and mechanical maintenance work in the pulp and paper industry.

System cleaning operations were performed quickly and effectively in piping systems and plate and tube heat exchangers.

WIBAX OY Wibax OY works primarily with the pulp and paper industry and during the year we conducted the first successful test run in the sulphur dioxide bleaching of mechanical pulp. Other focus areas are the mining and metal industries as well as water treatment and road maintenance. Through our cooperation with GE Water & Process Technologies, we are working with deposition control and corrosion protection for, among others, oil refineries and the metal industry, where our services are highly valued. A new Managing Director was appointed during the year and under his leadership progress has been made in offering customers competitive product concepts based on the Group’s expertise in storage, logistics and customer service and so achieving rapid growth.

10 • WIBAX

Our efforts to have sustainable and efficient transport can be seen clearly in both lower fuel consumption and a reduced environmental impact. Our sustainability work is ongoing, but it is pleasing to note that in 2016 the proportion of fossil-free fuel increased significantly and that the fuel-efficient driving of our drivers once again broke records.

We have continued our work with rail transport. Transport takes place using leased carriages and containers. We continue our efforts to implement the railway as an alternative form of transport for Wibax Logistics.

Our position as one of Sweden’s largest bulk suppliers has been strengthened further through continued investment in our national network of eight terminals for the storage of liquid products. The terminals are an important strategic investment, necessary to achieve Wibax’s growth objective. A good example is the terminal in Skutskär, where the first storage tank came into operation in February. More storage tanks and embankment work on the area were also completed during the year. In Norrköping we have built several new storage tanks that will be fully operational in 2017. Sustainability work at the depots in 2016 mainly involved converting product heating from electricity/oil to bio-oil, work that is ongoing, although the first terminal, Skelleftehamn, is now operational.

Our strength lies in the combination of transportation and storage. A business model that we have developed over the years and which has contributed to our strong position in the market.

This makes Wibax Logistics a unique company in the sector, with the range, expertise, flexibility and strength to develop further.

WIBAX • 11

FINANCIAL OVERVIEW

WIBAX GROUP Operating income – Operating profit/loss 1 000 000 900 000

50 000

1992-2016

45 000

WIBAX GROUP KPI 45,0

2016

2015

2014

2013

2012

2011

2010

2009

2008

0 KSEK

2007

5 000 2006

100 000 2005

10 000

2004

200 000

2003

15 000

2002

300 000

2001

20 000

2000

400 000

1999

25 000

1998

500 000

1997

30 000

1996

600 000

1995

35 000

1994

700 000

1993

40 000

1992

800 000

0 KSEK

Operating income Operating profit/loss (EBIT)

1996-2016

40,0 35,0 30,0 25,0 20,0 15,0 10,0

Profit/loss after financial items as % of turnover

5,0

Equity/assets ratio, % Return on capital employed

12 • WIBAX

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

0,0

WIBAX AB Operating income – Operating profit/loss 700 000

35 000

2001-2016

600 000

30 000

500 000

25 000

400 000

20 000

300 000

15 000

200 000

10 000

100 000

5 000 0 2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

KSEK

2001

0

KSEK

Operating income Operating profit/loss (EBIT)

WIBAX LOGISTICS AB Operating income – Operating profit/loss 200 000 180 000

20 000

2001-2016

18 000

160 000

16 000

140 000

14 000

120 000

12 000

100 000

10 000

80 000

8 000

60 000

6 000

40 000

4 000

20 000

2 000 0 2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

0 KSEK

KSEK

Operating income Operating profit/loss (EBIT))

WIBAX AB Investments 50 000 45 000

2001-2016

40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

0 KSEK

WIBAX • 13

FINANCIAL OVERVIEW MULTI-YEAR COMPARISON, GROUP, KSEK

2016 2015 2014 2013 2012 Operating income 769,963 709,427 628,548 618,473 606,506 Operating profit/loss (EBIT) 50,510 47,139 46,118 39,909 47,821 Operating profit/loss before depreciation (EBITDA) 77,531 70,574 68,690 62,676 61,854 Profit/loss after financial items 44,681 39,256 41,295 32,636 39 ,478 Profit/loss as % of net sales 6.1 5.7 6.8 5.4 6.8 Balance sheet total 534,064 469,879 430,474 367,415 405,232 Equity/assets ratio, % 39.0 39.4 38.2 38.3 30.8 Return on capital employed, % 9.5 9.5 11.4 10.9 12.8 Average number of employees 175 154 162 148 139

MULTI-YEAR COMPARISON, PARENT COMPANY, KSEK

Operating income Operating profit/loss (EBIT) Operating profit/loss before depreciation (EBITDA) Profit/loss after financial items Profit/loss as % of net sales Balance sheet total Equity/assets ratio, % Return on capital employed, % Average number of employees

2016 426,412 22,178 35,057 37,021 9.2 434,354 34.8 9.7 48

2015 435,810 20,558 30,911 13,530 3.2 363,514 31.9 5.1 43

2014 2013 2012 406,761 419,813 483,014 29,692 13,788 26,927 39,717 24,401 37,571 25,016 7,709 19,354 6.4 1.9 4.2 342,928 294,897 309,443 29 31 28.4 8.9 5.1 9.2 39 40 44

PROPOSAL FOR APPROPRIATION OF EARNINGS The Board of Directors and the CEO propose that the available remaining profit, 63,715 KSEK be allocated as follows:

To be carried forward 63,715 TOTAL 63,715 As regards the company’s profit/loss and financial position in general, please refer to the following income statement and balance sheet with accompanying supplementary disclosures and notes to the financial statements. All amounts are in KSEK unless otherwise stated.

EQUITY

GROUP

Share capital

Restricted reserves

Unrestricted reserves

Closing balance according to the previous year’s balance sheet 1,200 111,485 Changes in acquisitions Adjustment between restricted and unrestricted reserves 7,195 Dividend Profit/loss for the year Foreign currency translation differences at foreign companies At end of year 1,200 118,680

72,587 -1,700 -7,195 -10,000 34,530 110 88,332

PARENT COMPANY Share capital Statutory reserve Unrestricted equity Closing balance according to the previous year’s balance sheet 1,200 240 Dividend Profit/loss for the year At end of year 1,200 240 14 • WIBAX

34,285 -10,000 39,429 63,714

INCOME STATEMENT

GROUP

PARENT COMPANY

Note

OPERATING INCOME Net sales 1 Capitalised work for own account Other operating income 2

2016

735,092 6,870 28,001 769,963

OPERATING EXPENSES Raw materials and consumables Other external expenses 3, 4 Personnel expenses 5 Depreciation of tangible and intangible assets 6 Other operating expenses 7 Operating profit/loss 8

-519,843 -42,188 -115,406 -27,021 -14,995 50,510

-486,166 -31,184 -109,441 -23,435 -12,063 47,138

-326,334 -24,819 -32,150 -12,879 -8,052 22,178

-344,757 -25,156 -28,567 -10,353 -6,418 20,559

PROFIT/LOSS FROM FINANCIAL ITEMS Dividends from shares in associates Interest income 9 Interest expenses and similar profit/loss items 10 Profit/loss after financial items

- 266 -6,095 44,681

5 -2,636 -5,252 39,255

19,764 123 -5,044 37,021

-2,174 -4,854 13,531

Appropriations 11 Profit/loss before tax 44,681 39,255

8,197 45,218

13,766 27,297

Tax on profit/loss for the year 12 -10,151 -9,206 Profit/loss for the year 34,530 30,049

-5,789 39,429

-6,142 21,155

2015 2016 2015

683,984 402,927 4,296 21,147 23,485 709,427 426,412

418,249

17,561 435,810

WIBAX • 15

BALANCE SHEET

Note

GROUP 31/12/2016

PARENT COMPANY 31/12/2015

31/12/2016 31/12/2015

ASSETS FIXED ASSETS INTANGIBLE ASSETS Expenditure on software 13 Concessions, patents, licences, trademarks and similar rights

Goodwill 15 Advances intangible assets

2,112 14

1,583 571

1,770 761

1,083

230 55 2,968

312 2,656

1,770

1,083

76,808 103,398 1,223 63,245 244,674

78,247 108,262 1,821 31,090 219,420

14,842

13,055

14,842

13,055

261,286

233,558

32,593

31,846

32,593

31,846

76,174 63,008

70,701 26,082

15 1,278 140,475

15 1,303 98,101

-

9

TANGIBLE ASSETS Buildings and land 16 76,808 78,247 Plant and machinery 17 139,567 143,976 Equipment, tools, fixtures and fittings 18 34,086 26,137 New construction in progress 19 63,932 31,679

314,393 280,039 FINANCIAL ASSETS Shares in group companies 20 Shares in associates 100 100 Deferred tax assets - 738

100 838 Total fixed assets

317,461

283,533

CURRENT ASSETS INVENTORIES, ETC. Raw materials and consumables 33,253 44,559 Finished goods and goods for resale 33,012 8,385 Work in progress for third-party account 349 16 Advances to suppliers 303 303

66,917 53,263 CURRENT RECEIVABLES Trade receivables 143,235 125,791 Receivables from Group companies Tax receivables 2,584 441 Other receivables 303 1,449 Prepaid expenses and accrued income 21 3,564 5,402

149,686 133,083 Cash and bank balances

22

Total current assets

216,603

186,346

173,068

129,956

TOTAL ASSETS

534,064

469,879

434,354

363,514

16 • WIBAX

Note

GROUP 31/12/2016

PARENT COMPANY 31/12/2015

31/12/2016 31/12/2015

EQUITY AND LIABILITIES

RESTRICTED EQUITY Share capital (12,000 shares) 1,200 1,200 1,200 Restricted reserves 118,680 111,485 240 Statutory reserve

119,880 112,685 1,440

NON-RESTRICTED EQUITY Profit/loss brought forward 53,802 42,538 24,286 Profit/loss for the year 34,530 30,049 39,429

88,332 72,587 63,715 Total equity 208,212 185,272

UNTAXED RESERVES 23 Accumulated additional depreciation Tax allocation reserves

PROVISIONS Provisions for deferred tax

1,200 240 1,440 13,131 21,155 34,286

65,155

35,725

83,086 26,907 109,993

84,462 18,328 102,790

35,111 35,111

33,023 33,023

1,759 1,759

1,660 1,660

12,605 130,040 142,645

NON-CURRENT LIABILITIES Bank overdraft facilities 24 Other liabilities to credit institutions 25

CURRENT LIABILITIES Liabilities to credit institutions 25 Advance payments from customers Trade payables Current tax liabilities Other current liabilities Accrued expenses and prepaid income 26

68,024 101,738 169,762

88,656 91,040 179,696

105,448 71,800 177,248

20,157 11,701 101 101 82,767 36,032

17,504 13,066 27,567 20,922 148,096 81,822

16,260 - 46,650 3,064 4,307 7,470 77,751

7,360 9 23,719 3,414 5,106 6,482 46,090

TOTAL EQUITY AND LIABILITIES

534,064

434,354

363,514

469,879

WIBAX • 17

CASH FLOW STATEMENT

GROUP

PARENT COMPANY

Note 31/12/2016 31/12/2015 31/12/2016 31/12/2015 OPERATING ACTIVITIES Operating profit/loss 50,510 47,138 22,178 20,558 Adjustments for items not included in the cash flow 27,207 23,347 12,879 10,179 Interest received 266 -2,636 123 Interest paid -6,095 -5,252 -5,044 -7,028 Tax paid -8,148 -6,828 -5,690 -6,044 Cash flow from operating activities before changes 63,740 55,769 24,446 17,665 in working capital CASH FLOW FROM CHANGES IN WORKING CAPITAL Increase (-)/Decrease (+) in inventories Increase (-)/Decrease (+) in operating assets Increase (+)/Decrease (-) in operating liabilities Cash flow from operating activities

-13,654 -16,603 66,274 99,757

4,106 -11,341 -48,414 120

-747 -42,374 31,661 12,986

9,826 3,318 -36,489 -5,680

INVESTING ACTIVITIES Acquisition of subsidiaries -1,700 Acquisition of intangible assets -1,619 -1,056 Acquisition of buildings and land -126 Acquisition of tangible assets -60,059 -53,685 Acquisition of financial assets 738 -738 Cash flow from investing activities -62,640 -55,605

-1,787 -1,127

-37,693

-9,487 -703 -126 -33,598

-40,607

-43,914

FINANCING ACTIVITIES Loans and repayments (net) 28,302 10,805 Other liabilities to credit institutions Bank overdraft facilities -55,419 53,680 Dividend paid -10,000 -9,000 Dividends from subsidiaries Group contribution received(+)/made (-) Cash flow from financing activities -37,117 55,485

19,240 -16,792 -10,000 19,764 15,400 27,612

7,640 31,949 -9,000 19,000 49,589

-9 9 -

-5 14 9

Cash flow for the year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

18 • WIBAX

0 0 0

0 0 0

ACCOUNTING PRINCIPLES AND NOTES TO THE FINANCIAL STATEMENTS

GENERAL ACCOUNTING PRINCIPLES The annual accounts have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Accounting Standards Board 2012:1 (K3).

RECEIVABLES Receivables are reported at the lesser of either the nominal value or the amount at which they are estimated to be received.

CLASSIFICATION Fixed assets, long-term liabilities and provisions essentially only consist of amounts that are expected to be received or paid after twelve months, calculated from the balance sheet date.

Current assets and current liabilities essentially only consist of amounts that are expected to be received or paid within twelve months, calculated from the balance sheet date.

RECEIVABLES AND LIABILITIES IN FOREIGN CURRENCY Receivables and liabilities in foreign currency have been calculated using the exchange rate as at the balance sheet date.

VALUATION PRINCIPLES ETC. Assets, provisions and liabilities have been valued at their acquisition value, unless otherwise stated below.

DEFINITION OF KPIS Return on capital employed Profit/loss after financial items plus interest expenses as a percentage of the balance sheet total.

Equity/assets ratio Equity and untaxed reserves, net of deferred tax (22%), as a percentage of the balance sheet total.

LEASING The Swedish Accounting Standards Board’s advice on the accounting of leasing agreements is applied.

In the Group, assets that are leased through a finance leasing agreement are recognised as an item of property, plant and equipment, while future lease payments are recognised as a liability. On initial recognition, the asset and liability are recognised at the amount of the future minimum lease payments.

In the parent company, all leasing agreements, both financial and operating, are recognised as operating leases.

INTANGIBLE AND TANGIBLE ASSETS Tangible assets are reported at their acquisition value less accumulated depreciation and possible write-downs. Land does not depreciate. Straight line depreciation takes place on depreciable amounts (the acquisition value less the calculated remaining amount) during the lifetime of the asset, according to the following: Product rights 5 years Buildings and land 20–70 years Plant and other machinery 5–20 years Equipment, tools, fixtures and fittings 3–7 years The difference between depreciation according to plan and reported depreciation is recognised as appropriations.

LIQUID FUNDS Liquid funds include cash and bank balances.

GROUP ACCOUNTS The consolidated income statement and balance sheet include all companies in which the parent company directly or indirectly holds more than half of the shares’ number of votes, as well as companies in which the Group has a controlling influence in other ways, and a more significant portion of the profit from operations.

ACQUISITION ACCOUNTING The consolidated accounts have been prepared in accordance with the Swedish Financial Accounting Standards Council’s recommendations for consolidated accounts. All company acquisitions have been reported in line with acquisition accounting.

Untaxed reserves are reported in the individual group companies, divided in the group balance sheet into a capital portion and a tax portion. The capital portion has been supplied to restricted reserves. The tax portion is reported as provisions under the heading Deferred Tax Liability.

RENTAL INCOME Rental income for buildings held for investment purposes is reported on a linear basis in accordance with the conditions stated in the applicable rental agreement.

INCOME Income is reported to the extent that it is likely that the financial advantages will be credited to the company and the income can be calculated in a reliable manner.

EMPLOYEE BENEFITS Employee benefits refer to all kinds of benefits the company provides to its employees. The company’s benefits include salaries, paid holiday, paid absence, bonuses and benefits once employment has ended (pensions). These are reported as they are earned. Employee benefits once employment has ended refer to defined contribution or defined benefit pension plans. Defined contribution plans are those plans where set contributions are paid and there are no legal or constructive obligations to make any other payment over and above these contributions. Other plans are classified as defined benefit pension plans. The company provides no other long-term benefits to employees.

INVENTORIES The inventory is entered at either the acquisition value or the actual value, whichever is the lowest, according to the first in first out principle. As a result, the risk of obsolescence has been taken into account.

WIBAX • 19

NOTES NOTE 1 NET SALES

GROUP Net sales - Of which transport allowance

2016

2015

735,092 15,816

683,984 17,318

PARENT COMPANY Net sales - Of which transport allowance

402,927 15,816

418,249 17,318

NOTE 2 OTHER OPERATING INCOME

GROUP Exchange gains Rental income Other Total

2016

2015

16,321 9,586 2,094 28,001

11,316 9,537 294 21,147

PARENT COMPANY Exchange gains Rental income Other Total

9,770 13,577 138 23,485

5,583 12,191 -213 17,561

2016

2015

404 51 70 525

461 57 110 628

179 51 13 243

121 57 25 203

NOTE 3 FEES AND EXPENSES REMUNERATION TO AUDITORS

GROUP Ernst & Young Audit assignment Tax consultancy services Other services Total PARENT COMPANY Ernst & Young Audit assignment Tax consultancy services Other assignments Total

NOTE 4 LEASING AGREEMENTS

2016 PARENT COMPANY Assets held through operational leasing agreements During the year, the company’s leasing expenses amounted to 839 Fees due - within one year 754 - later than one year but within five years 1,483

20 • WIBAX

2015

635 465 988

NOTE 5 EMPLOYEES AND PERSONNEL EXPENSES

2016

2015

28 20 48

26 17 43

108 14

95 11

FINLAND Men Women

2 -

2 -

NORWAY Men Women

1 -

1 -

DENMARK Men Women

2 -

2 -

127 175

111 154

Ratio women as %

Ratio women as %

20 17

20 17

AVERAGE NUMBER OF EMPLOYEES PARENT COMPANY Men Women Total in parent company SUBSIDIARIES SWEDEN Men Women

Total at subsidiaries Group total GENDER DISTRIBUTION IN SENIOR MANAGEMENT

PARENT COMPANY Board of Directors Other senior executives

SALARIES, OTHER REMUNERATION AND PAYROLL OVERHEAD COSTS PARENT COMPANY Board of Directors and CEO Other employees Total, 1) Payroll overhead costs (of which pension costs) 2)

1,959 19,236 21,195 9,251 2,190

2,091 17,500 19,591 8,434 1,977

SUBSIDIARIES Board of Directors and Managing Director Other employees Total Payroll overhead costs (of which pension costs)

1,451 56,346 57,797 22,352 3,665

820 54,522 55,342 18,807 3,386

GROUP Board of Directors and CEO Other employees Total Payroll overhead costs (of which pension costs) 3)

3,411 75,582 78,993 31,602 5,855

2,911 72,022 74,933 27,241 5,363

1) Personnel expenses have decreased with the receipt of government support 0 (0).

2) Of the parent company’s pension costs, 334 (prev. yr. 205) refers to company Board of Directors and Managing Director in respect of 2 (2) people.

3) Of the Group’s pension costs, 334 (prev. yr. 205) refers to company management in respect of 2 (2) people.

WIBAX • 21

NOTE 6 DEPRECIATION OF TANGIBLE AND INTANGIBLE ASSETS 2016

2015

902 1,439 15,439 9,241 27,021

228 1,437 12,303 9,467 23,435

440 1,439 10,233 767 12,879

121 1,437 8,069 725 10,352

2016

2015

14,294 701 14,995

12,066 -3 12,063

PARENT COMPANY Exchange losses 8,052 Other Total 8,052

6,421 -3 6,418

GROUP Intangible Buildings Machinery Inventories

PARENT COMPANY Intangible Buildings Machinery Inventories

NOTE 7 OTHER OPERATING EXPENSES

GROUP Exchange losses Other Total

NOTE 8 PURCHASES AND SALES BETWEEN GROUP COMPANIES 2016

2015

33,164 64,393

49,020 53,050

2016 GROUP Interest income 266 Foreign exchange differences Other Total 266

2015 226 -2,878 16 -2,636

PARENT COMPANY Interest income 123 Foreign exchange differences Other Total 123

167 -2,357 16 -2,174

GROUP Parent company sales in respect of Group companies Parent company purchases in respect of Group companies

NOTE 9 OTHER INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS

NOTE 10 INTEREST EXPENSES AND SIMILAR PROFIT/LOSS ITEMS

2016 GROUP Interest expenses 5,600 Foreign exchange differences Other 495 Total 6,095

5,926 -259 -415 5,252

PARENT COMPANY Interest expenses 4,672 Foreign exchange differences Other 372 Total 5,044

4,988 -248 114 4,854

22 • WIBAX

2015

NOTE 11 APPROPRIATIONS

2016

2015

Group contributions received 50,262 Group contribution paid -34,862 Changes in additional depreciation 1,376 Tax allocation reserve, annual provision -8,579 Tax allocation reserve, annual cancellation Total 8,197

19,000 -2,176 -9,158 6,100 13,766

NOTE 12 TAX ON PROFIT/LOSS FOR THE YEAR

GROUP Profit/loss reported before tax Tax on profit/loss for the year according to applicable tax rate Tax effect of: - Other non-deductible expenses/non-taxable income Tax reported Effective tax rate

2016

2015

44,681

39,255

-9,830

-8,636

-321 -10,151

-570 -9,206

22.7%

23.5%

PARENT COMPANY Profit/loss reported before tax Tax on profit/loss for the year according to applicable tax rate (22%) Tax effect of: - Other non-deductible expenses/non-taxable income Tax reported

45,218 -9,948

27,297 -6,005

4,159 -5,789

-137 -6,142

Effective tax rate

12.8%

22.5%

2016

2015

2,896 1,478 -567 3,807

1,980 916

-1,313 161 -543 -1,695 2,112

-1,125

NOTE 13 CAPITALISED EXPENDITURE ON DEVELOPMENT WORK AND SIMILAR WORK

GROUP Accumulated acquisition value: -At beginning of year -New acquisitions -Disposals

Accumulated depreciation according to plan: -At beginning of year -Disposals -Annual depreciation according to plan

Reported value at end of year

PARENT COMPANY Accumulated acquisition value: -At beginning of year 2,330 -New acquisitions 1,126

3,456 Accumulated depreciation according to plan: -At beginning of year -1,246 -Disposals -Reclassifications -Annual depreciation according to plan -440

-1,686 Reported value at end of year 1,770

2,896

-188 -1,313 1,583

1,627 703 2,330

-1,125 -121 -1,246 1,084

WIBAX • 23

NOTE 14 CONCESSIONS, PATENTS, LICENCES, TRADEMARKS

2016 GROUP Accumulated acquisition value: -At beginning of year 825 -New acquisitions

825 Accumulated depreciation according to plan: -At beginning of year -64 -Depreciation for the year according to plan -190

-254 Reported value at end of year 571

2015

825 825

-64 -64 761

NOTE 15 GOODWILL

2016 GROUP

Accumulated acquisition value: -At beginning of year 721 -New acquisitions 88 -Goodwill that existed at the time of acquisitions of subsidiaries

809 Accumulated depreciation according to plan: -At beginning of year -409 -Goodwill that existed at the time of acquisitions of subsidiaries -Annual depreciation according to plan -170

-579 Reported value at end of year 230

2015

121 600 721

-360 -49 -409 312

NOTE 16 BUILDINGS AND LAND

2016 GROUP Accumulated acquisition value: -At beginning of year 92,873 -New acquisitions

92,873 Accumulated depreciation according to plan: -At beginning of year -14,626 -Annual depreciation according to plan -1,439

-16,065 Reported value at end of year 76,808 PARENT COMPANY Accumulated acquisition value: -At beginning of year 92,873 -New acquisitions

92,873 Accumulated depreciation according to plan: -At beginning of year -14,626 -Annual depreciation according to plan -1,439

-16,065 Reported value at end of year 76,808

2015

92,747 126 92,873 -13,188 -1,438 -14,626 78,247

92,747 126 92,873 -13,188 -1,438 -14,626 78,247

NOTE 17 PLANT AND MACHINERY

GROUP Accumulated acquisition value: -At beginning of year -New acquisitions -Disposals -Reclassifications

Accumulated depreciation according to plan: -At beginning of year -Disposals -Write-downs -Annual depreciation according to plan

Reported value at end of year

24 • WIBAX

2016

2015

236,084 8,390 -2,928 4,731 246,277

219,077 13,030 -754 4,731 236,084

-92,108 854 -2,805 -12,651 -106,710 139,567

-80,087 182 -12,203 -92,108 143,976

PARENT COMPANY Accumulated acquisition value: -At beginning of year 172,060 -New acquisitions 637 -Disposals -Reclassifications 4,731

177,428 Accumulated depreciation according to plan: -At beginning of year -63,798 -Disposals -Write-downs -2,000 -Depreciation for the year according to plan -8,232

-74,030 Reported value at end of year 103,398

164,054 3,835 -560 4,731 172,060 -55,903 174 -8,069 -63,798 108,262

NOTE 18 EQUIPMENT, TOOLS, FIXTURES AND FITTINGS

2016 GROUP Accumulated acquisition value: -At beginning of year 51,418 -New acquisitions 19,709 -Acquisition of subsidiaries -Disposals -11,723

59,404 Accumulated depreciation according to plan: -At beginning of year -25,281 -Acquisition of subsidiaries -Disposals 9,136 -Annual depreciation according to plan -9,173

-25,318 Reported value at end of year 34,086 PARENT COMPANY Accumulated acquisition value: -At beginning of year -New acquisitions -Disposals

Accumulated depreciation according to plan: -At beginning of year -Disposals -Annual depreciation according to plan

Reported value at end of year

2015

45,748 11,047 721 -6,098 51,418 -20,171 -433 4,816 -9,493 -25,281 26,137

6,585 295 -171 6,709

5,800 785

-4,764 45 -767 -5,486 1,223

-4,039

6,585

-725 -4,764 1,821

NOTE 19 CONSTRUCTION IN PROGRESS

GROUP At beginning of year Reclassifications New acquisitions Reported value at end of year

2016

2015

31,679 -4,731 36,984 63,932

6,282 -4,731 30,128 31,679

PARENT COMPANY At beginning of year Reclassifications New acquisitions Reported value at end of year

31,090 -4,731 36,886 63,245

6,282 -4,731 29,539 31,090

WIBAX • 25

NOTE 20 SHARES IN GROUP COMPANIES

Accumulated acquisition value: -At beginning of year -Purchases Reported value at end of year

2016

2015

13,055 1,787 14,842

3,568 9,487 13,055

Specification of parent company’s shareholdings in Group companies This refers to the participating interest in the capital, which is also in agreement with the number of votes for the total number of shares.

Reported Subsidiary / Corp. ID. No / Reg. Office/ Number of shares Equity Profit/loss for the year as % of value Wibax Logistics AB, 556375-5080, Piteå, 2,000 shares 27,408 184 100 220 Wibax Tech AB, 556499-9257, Piteå, 1,000 shares 578 -36 100 143 Wibax Perf. Chem. AB, 556547-9705, Piteå, 1,000 shares 1,314 214 100 228 Wibax Industrial AB, 556346-1747, Piteå, 1,000 shares 1,620 93 100 104 Wibax Biofuels AB, 556729-0894, Piteå, 1,000 shares 14,603 7,162 100 11,274 Wibax OY, 2546247-1, Kotka (Finland), 1,000 shares 1,445 145 100 2,644 Wibax AS, 913456300, Skien (Norway), 100 shares 219 45 100 109 Wibax ApS, 35842489, Karlslunde (Denmark), 1,000 shares 251 39 100 120

14,842

NOTE 21 PREPAID EXPENSES AND ACCRUED INCOME

GROUP Insurance premiums Advance payments customers/suppliers Other items Total

2016

2015

303 1,627 1,634 3,564

749 1,757 2,896 5,402

PARENT COMPANY Insurance premiums Advance payments customers/suppliers Other items Total

48 447 783 1,278

347 956 1,303

2016 - - 0

2015 9 9

2016

2015

83,086

84,462

500 3,666 2,636 2,368 9,158 8,579 109,993

500 3,666 2,636 2,368 9,158

NOTE 22 CASH AND BANK BALANCES

Cash Available balances at banks and other credit institutions Total

NOTE 23 UNTAXED RESERVES

Accumulated additional depreciation: Tax allocation reserves: - Provision for tax in 2012 - Provision for tax in 2013 -Provision for tax year 2013 -Provision for tax year 2014 -Provision for tax year 2015 -Provision for tax year 2016 Total

102,790

NOTE 24 CREDIT GRANTED Bank overdraft facilities The granted amount of bank overdraft facilities in the Group amounts to SEK 100 million (SEK 115 million), and in the parent company to SEK 100 million (SEK 115 million).

NOTE 25 OTHER LIABILITIES TO CREDIT INSTITUTIONS

GROUP Due date within one year of the balance sheet date Due date one to five years from the balance sheet date Due date more than five years from the balance sheet date

PARENT COMPANY Due date within one year of the balance sheet date Due date one to five years from the balance sheet date Due date more than five years from the balance sheet date

26 • WIBAX

2016

2015

20,157 104,040 26,000 150,197

17,331 53,748 42,360 113,439

16,260 65,040 26,000 107,300

7,360 29,440 42,360 79,160

NOTE 26 ACCRUED EXPENSES AND PREPAID INCOME

GROUP Personnel-related liabilities Other items Total

2016

2015

18,997 8,570 27,567

16,820 4,102 20,922

4,707 2,763 7,470

4,254 2,229 6,483

The Board of Directors and the CEO propose that the available remaining profit, SEK 63,715,000, be allocated as follows:

To be carried forward TOTAL

Amount 63,715 63,715

PARENT COMPANY Personnel-related liabilities Other items Total

NOTE 27 PROPOSED APPROPRIATION OF THE COMPANY’S PROFIT OR LOSS

NOTE 28 PLEDGED ASSETS

GROUP Real estate mortgages Chattel mortgages Assets with reservation of title Total

2016

2015

67,240 156,557 49,112 272,909

59,240 122,545 47,102 228,887

PARENT COMPANY Real estate mortgages Chattel mortgages Total

67,240 130,512 197,752

59,240 105,000 164,240

2016

2015

1,362

1,362

None

None

2016

2015

12,000 100

12,000 100

NOTE 29 CONTINGENT LIABILITIES

GROUP Contingent liabilities Contingent liability Norway PARENT COMPANY Contingent liabilities

NOTE 30 NUMBER OF SHARES

PARENT COMPANY Number of shares Par value (SEK)

Piteå 25/04/2017

Anders Snell Chairman of the Board

Bo Wikund, Board Member

Stina Blombäck, Board Member

Rolf Back, Board Member Lars-Erik Aaro, Board Member

Jonas Wiklund Chief Executive Office

My audit report was submitted on 15/05/2017.

Mats Lundin, uthorised Public Accountant

WIBAX • 27

AUDIT REPORT To the annual general meeting of

WIBAX AB

Corporate Identity Number 556262-9674 REPORT ON THE ANNUAL ACCOUNTS AND THE CONSOLIDATED ACCOUNTS Opinions I have audited the annual accounts and consolidated accounts of Wibax AB for the financial year 01/01/2016 – 31/12/2016.

In my opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the Group as of 31 December 2016 and their financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.

I therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the Group.

Basis for Opinions I conducted my audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. My responsibilities under those standards are further described in the Auditor’s responsibilitiessection. I am independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled my ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions.

Responsibilities of the Board of Directors and the Chief Executive Officer The Board of Directors and the Chief Executive Officer are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Chief Executive Officer are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts and consolidated accounts, the Board of Directors and the Chief Executive Officer are responsible for the assessment of the company’s and the Group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Chief Executive Officer intend to liquidate the company, to cease operations, or have no realistic alternative but to do so.

28 • WIBAX

Auditor’s responsibilities My objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinions.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts.

As part of an audit in accordance with ISAs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: • Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of the company’s internal control relevant to my audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Chief Executive Officer.

• Conclude on the appropriateness of the Board of Directors’ and the Chief Executive Officer’s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. I also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the Group’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify my opinion about the annual accounts and consolidated accounts.

My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated accounts. I am responsible for the direction, supervision and performance of the Group audit. I remain solely responsible for my opinions. I must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. I must also inform of significant audit findings during my audit, including any significant deficiencies in internal control that I identified.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Opinions In addition to my audit of the annual accounts and consolidated accounts, I have also audited the administration of the Board of Directors and the Chief Executive Officer of Wibax AB for the financial year 01/01/2016 – 31/12/2016 and the proposed appropriations of the company’s profit or loss.

I recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Chief Executive Officer be discharged from liability for the financial year.

Basis for Opinions I conducted the audit in accordance with generally accepted auditing standards in Sweden. My responsibilities under those standards are further described in the “Auditor’s responsibilities” section. I am independent of the parent company and the Group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled my ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinions.

Responsibilities of the Board of Directors and the Chief Executive Officer The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the Group’s type of operations, size and risks place on the size of the parent company’s and the Group’s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organisation and the administration of the company’s affairs.

This includes among other things continuous assessment of the company’s and the Group’s financial situation and ensuring that the company’s organisation is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner.

The Chief Executive Officer shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfil the company’s accounting in accordance with law and handle the management of assets in a reassuring manner.

Auditor’s responsibilities My objective concerning the audit of the administration, and thereby my opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Chief Executive Officer in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

My objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby my opinion about this, is to assess with a reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, I exercise professional judgement and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on my professional judgement with a starting point in risk and materiality. This means that I focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. I examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to my opinion concerning discharge from liability. As a basis for my opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss I examined whether the proposal is in accordance with the Companies Act.

Mats Lundin Auktoriserad revisor

Uppsala, 15 May 2017

WIBAX • 29

BOARD OF DIRECTORS FOR WIBAX GROUP ANDERS SNELL Chairman of the Board since 2011.

MSc Engineering Chairman of the Board, ÅFORSK. Board Member, Ångpanneföreningen.

Previous positions: Technical Director, Assi Domän; Technical Director, Billerud. Site Manager Gruvöns bruk, Skärblacka Bruk, Karlsborgs Bruk, CEO Grycksbo, Norrsundet Bruks AB, Production Manager and Operations Engineer Skutskärsverken.

STINA BLOMBÄCK Board Member since 2015.

MSc Engineering in Chemistry from the Swedish Royal Institute of Technology. CEO, Senior Consultant for Brännbacken Projekt AB. Other directorships, including at Luleå Energi AB and Part Construction AB. Previous positions: Sustainability and Energy Director, BillerudKorsnäs AB, CEO Billerud Karlsborg AB.

ROLF BACK Board Member since 1995.

Doctor of Economics.

Previous positions: A number of CEO positions, including at Ahlsell, Åhlens and Wasa Försäkringar. Head of Research GI – IHR, Stockholm University, Professor, Luleå University of Technology.

Board Member of Royal Swedish Academy of Engineering Sciences and Chairman of the Board, Noak.

LARS-ERIC AARO Board Member since 2016.

MSc Mining Engineering from Luleå University of Technology.

Previous positions: Sales Director of the ÅF Group and member of the Group management, CEO and Group President of LKAB, senior executive positions at Secoroc, Boliden and AssiDomän. Member of the Royal Swedish Academy of Engineering Sciences (IVA) and honorary doctorate from LTU.

MANAGEMENT TEAM

JONAS WIKLUND CEO Wibax Group

MAGNUS SUNDSTRÖM Managing Director Logistics

DAVID WIKLUND Managing Director Biofuels

FREDRIK NORDSTRÖM COO Industrial

ANDREAS WIKLUND COO Production

DAVID ÖQUIST CCO

ANNICA PETTERSSON Chief of HR

CAROLINE HÄGGSTRÖM Chief of SEQ

KRISTOFFER ÖVERHEM CFO

HANS HENRIKSSON CPO

BO WIKLUND Board Member Engineer Founder and Owner.

55% shareholding in WIBAX Group.

30 • WIBAX

URBAN HAUGEN COO Tech

WIBAX • 31

production: mawix art · photos: magnus sundström and others

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