ANNUAL REVIEW

2015

FLUID HANDLING EQUPMENTThe pumps and mixers, the

valves and the systems that keep industrial processes

flowing nonstop; downtime is not an option.

HEAVY DUTY VEHICLE COMPONENTS AND INDUSTRIAL PRODUCTS

The products that keep goods moving. The tools, couplings,

lights, brakes, batteries and the countless other components

that vehicles depend on every day.

BEARINGS AND TRANSMISSIONS The components and systems that reduce friction to smooth the rollers and transmit the power that drives the machinery, such as bearings and mechanical transmissions.

LIFTING, ANCHORING AND CARGO SECURING SOLUTIONS The lifting gear, wire ropes, and lashing equipment that keep people and goods safe and securely in place. And they are the products that ensure that whenever goods are lifted or moved, it is done with the utmost safety.

6,481 2,655 90ANNUAL SALES, SEK MILLION

DISTRIBUTION OF SALES BY MARKET

DISTRIBUTION OF SALES BY SEGMENT

NUMBER OF EMPLOYEES NUMBER OF GROUP COMPANIES

1. Sweden 24%

2. Other EU countries 59%

3. Norway 14%

4. Outside Europe 3%

1. Lifting and lashing equipment 50%

2. Fluid handling equipment 23%

3. Heavy duty vehicle components 10%

4. Bearings and transmissions 17%

1

1

2

2

3

3

4

4

adding value where it matters

Axel Johnson International is a distributor of technology products and a provider of

services and solutions to industry. We support customers in selected

industries by improving the efficiency, reliability, quality and safety of their

industrial operations.

The companies that make up Axel Johnson International are all experts in their respective segments. We add value to our customers’ businesses

through our product and application knowledge, efficient logistics, maintenance and repair, technical support and customized solutions.

We have strong footholds in our local markets, global supplier and partner networks, and the expertise and passion to become trusted

technology partners to industrial companies in more than 25 countries.

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e notes a major strength of Axel Johnson International as being that the Group does not stand or fall on the performance of a

single market area. So while the offshore industry in 2015 experienced continued downturn, for example, general industry within Europe, and the Group’s companies in that area, performed well.

A DISPASSIONATE OVERVIEWThis cross-industry insight, the CFO’s macro perspective of granular financial data, allows adjustments to be made in a timely way so the Group can steer its path towards increased growth. Prospects

– from the cfo’s perspective

NAV GATING

for the year ahead are influenced by the macroeconomic climate, but the breadth of Axel Johnson International’s interests allow the strong growth in some certain Business Groups to balance more challenging areas.

Yes there are challenges, but also huge opportunities. And the increased emphasis on M & A is a clear indication of the Group’s intention to capitalize on those opportunities. Axel Johnson International is far-sighted with an eye on long-term continued growth. And that means reading the data, analysing the data and interpreting the risks, but most importantly seizing all the opportunities that are out there.

Niklas Enmark, CFO at Axel Johnson International

Niklas Enmark, CFO at Axel Johnson International, navigates the quarterly financial reports of the 90 companies that form the Group. His overview of the changing fortunes of so many companies across a variety of industrial areas provides the economic intelligence for steering executive decisions.

H

the numbers

ME Maskin & Industriservice AB (SE) Acorn Industrial Services Group (UK) Forszi-Tech Kft (HUN)

Kwintet (NO) Haimerl (DE) Armaton (S) Akodis (FR) Ingeniörsfirma Trans-Auto (S)

Gällivare Industriservice (S) Spruit Transmissies (NL) Motovario (DK) Rotoman (FI) OE Solutions and Safe Supply (NO)

Mennens Group (Benelux) Kompetanseteknikk (NO) Inkalift (FI & EE) Tekniikka Center (FI) Chemo-Invest Specialpumpar (SE) TM-Palvelu (FI)

Norpump (NO) Thames Valley Pumps (UK) Olcoven (FR & ES) Codeprin (FR) Tauno Tasanto (FI) Eltjänst Elektromekaniska (SE)

CombiFlow (IRL) Hendriks Flevo (NL)

2015

2011-2014

BUSINESSES ACQUIRED OVER

THE PAST 5 YEARS:

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ANNUAL REPORT 2015

he spare parts business faces big challenges; vehicle quality and service life improves each year and components last longer. We

address this by helping customers evaluate the sustainable option. Trailereffekter took market share and opened new branches in the trailer component market.

We continue to excel at finding new products and being first to market; it is something we are known for, that sets us apart. LED products continue to figure, this year with exciting new products such as light bars. These are arrays of LEDs mounted high up for visibility and safety. We have also introduced other new products and systems for trucks, including those addressing bad weather conditions.

Most of the manufactured products we sell are getting cheaper but of higher quality. With more efficient logistics, a more attractive selection and better service we are the preferred, ‘go to’ supplier.

OPERATOR COMFORT MEANS OPERATOR EFFICIENCYHeating and cooling systems for improving cab comfort, safety and sustainability

are important for the Nordic climate; and better comfort also contributes to improved efficiency. These systems have been deployed widely for ‘yellow vehicles’ - the extensive fleets of earth movers, forklifts, cranes, forest machines etc.

ADDRESSING THE CUSTOMER THROUGH PIXEL AND PRINT, OFFLINE WITH ONLINEWe are also enhancing our sales systems; the introduction within ABKATI of PIM-based catalogues (using Product Information Management systems feeding large amounts of product data in real-time) has been very successful. This does not replace our internal sales specialists, but rapid access to data with expert human contact at the end of the phone has proved a winning combination.

STAYING CLOSE TO OUR CUSTOMERSWe have invested in sales personnel, opened new branches in the mining district and invested in more back office staff. And we now have even closer collaboration between the companies and large customers. In Finland we merged Widni with Rotoman for a more efficient presence on the Finnish market with a focus on electrical parts and components.

T

AxD

rive

Products for everything that movesThe year has been a good one. Surpassing targeted growth in several areas is definitely a plus in the current climate. In particular those companies working with automotive components, such as ABKATI, have done better.

Gunder Nilsson, President AxDrive

A Rottne H21D Harvester in its element. The low light conditions found in dense forests demand the very brightest LED lighting for safety and efficiency.

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Alimak Hek produces industrial lifts and work platforms in

Skellefteå, Northern Sweden, and exports them to 70–80 countries worldwide. It enjoys a reputation as a world-leading manufacturer of rack and pinion lifts and work platforms with more than 21,000 of its construction hoists, industrial lifts and work and transport platforms currently in use. And there is a very good chance that most of those will include roller- or ball bearing products supplied by Nomo.

Rigorous safety controls and testing is vital, not least because Alimak Hek equipment is frequently used in harsh environments - anything from minus 80 degrees Celsius with snow and ice to sandy deserts and extreme heat. All of this also places tough requirements on the seals and the grease needed to lubricate the moving parts and bearings. Supplying bearings for tough conditions is bread and butter to Nomo. But it’s not only having access to the right products that counts, it’s also understanding which bearings, and their lubricants, are best suited for which applications.

A PARTNERSHIP BUILT ON TRUSTSince their first delivery to Alimak Hek back in 1968, Nomo have proved they

are the right partners. ‘Our requirements on the components used in our lifts are extremely high. The materials and design of our components are continuously tested and developed for increased reliability and resistance to wear,’ explains Pär Lundqvist, strategic purchaser at Alimak Hek AB in Skellefteå.

‘The sealed ball bearings we use, which we buy from Nomo, are of vital importance – they are included in every single lift produced by Alimak Hek,’ he continues. ‘Each lift contains close to 40 bearings of this type.’

The co-operation with Nomo grew even stronger in 2011 when Nomo was asked to supply high performance ball bearings. ‘We had difficulties finding a specific bearing of sufficient durability, says Pär Lundqvist. ‘Nomo supplies bearings that meet our high requirements. This is particularly important for seals, as these bearings are included in applications that are exposed to weather and wind and major changes in temperature.’

Also crucial to this long-term co-operati on is the fast response and depend ability. Alimak Hek also values Nomo’s pro active involvement, seen in the frequent contact with Alimak Hek’s R & D team, something other suppliers can rarely do.

We rarely pay any attention to the lifts and hoists in industrial environments often only seen standing out against the skyline as they transport people and equipment. Yet the safety and smooth operation of these is dependent on smart design, excellence in manufacture and the highest quality in the components hidden away inside.

Top floor service and quality

BUSINESS GROUP: AxIndustriesNomo Kullager: Part of Axel Johnson International since 2000. Employees: approx. 100. Offices: 6 in Sweden (HQ in Täby), and through subsidiaries 4 in Finland and 1 in Denmark.

case

Cooling tower at a power plant in Australia. Smooth movement up the side courtesy of Nomo.

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3,2211,452TURNOVER SEK MILLION

EMPLOYEES IN MORE THAN 15 COUNTRIES

SALES, MSEK

OPERATING PROFIT, MSEK

SHARE OF AXEL JOHNSON INTERNATIONAL SALES

MSEK 3,221

50%

SHARE OF AXEL JOHNSON INTERNATIONAL OPERATING PROFIT

MSEK 142

52%

2,996

168

2,455

152

3,052

184

3,254

182

3,221

142

Lashing chain of Grade 80 steel with a minimum yield strength of 80 ksi (kilopounds per square inch).

Steel wire 16 mm rope wound from just six filaments with lashing capa-

city (LC) of 5.3 kiloNewtons.

INOX (stainless) steel collar sealing the loop. Crimped with five tonnes of pressure for a secure connection.

Hook-hook type lashing chain.

5.3 KN

WORKING FOR A SAFER, MORE EFFICIENT WORK ENVIRONMENT

We are Europe’s leading suppliers of steel wire ropes, lifting and cargo securing equipment. Every day – all over the world – AxLoad products and solutions are deployed in ports and airports, on ships and on the road, on offshore platforms as well as in countless and varied industrial applications to ensure a safe and efficient working environment.

Certex offers advanced solutions and high-end lifting and anchoring products to end-users in the industry, energy and marine sectors. Services include certification and servicing of cranes, elevators, shipyards and wind turbines for onshore and offshore oil and gas operators, as well as the mining and steel industries.

Forankra is a leading supplier of cargo-securing, cargo-optimization and wholesale distribution of lifting and lashing equipment. Forankra serves the road, air and shipping transportation sectors, as well as industries and OEMs.

2011 2012 2013 2014 2015

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The companies that serve our customers90 different companies in more than 25 countries form Axel Johnson International.

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