Annual Report in English - Consilium

Annual Report 2011

Contents
the Year in Brief 3
Group overview 4
statement from the Ceo 6
Consilium’s market organisation 9
strategic Direction 10
Marine & safety business area 12
Fire safety & Automation business area 18
the share 22
Multi-year overview 24
Key Figures and Definitions 25
Board of Directors’ Report 26
Consolidated Income statement 29
Consolidated Balance sheet 30
Consolidated statement of Changes in equity 31
Consolidated Cash Flow statement 32
Income statement, Parent 33
Balance sheet, Parent 34
statement of Changes in equity, Parent 35
Cash Flow statement, Parent 36
Accounting Policies 37
notes 41
Audit Report 53
Corporate Governance 54
Auditor’s report on the Corporate
Governance statement 59
Board 60
Management 61
History 62
Addresses

tHe YeAR In BRIeF
significant events during the year
• Consilium continued to develop its global market organisation
and signed strategic cooperation agreements with leading
suppliers, including a contract for global sales of marine
satellite communication with Orange.
• As a result of the progressive increase in sales of fire safety
systems to the on-shore oil and gas industry, the name of
the Automation business area was changed to Fire safety
& Automation.
• The focus on niche products and niche areas was increased in
order to create growth and complement the base of traditional
marine products.
• The staffing and cost structure was further adapted to the
current economic situation during the year.
Consilium develops and markets products, services and systems
for safety, navigation and automation applications. the guiding
principle behind Consilium’s products and systems is to help
protect people, the environment and material values.
With a stable base of proprietary products, complemented by
high-quality external brands, and a global market organisation,
Consilium ranks among the world’s leading suppliers to the
international shipping and oil and gas industries.
Quarterly overview
Q1
Increased sales and
lower costs had a
positive effect on
operating profit.
order intake was
seK 179.1 (236.7) million.
net sales amounted to
seK 214.7 (192.3) million.
operating profit (eBIt)
was seK 17.0 (7.0) million.
Q2
Sales showed a good
balance between
different market
segments.
order intake was seK
205.2 (256.2) million.
net sales amounted to seK
238.5 (208.2) million.
operating profit (eBIt) was
seK 17.1 (8.2) million.
Financial performance
tHe YeAR In BRIeF
• Net sales increased by 6 percent to SEK 978.0 (926.3) million
• EBITDA increased by 27 percent to SEK 91.3 (72.0) million
• EBIT increased by 46 percent to SEK 54.9 (37.6) million
• EBT increased by 69 percent to SEK 38.4 (22.7) million
• Order intake declined by 2 percent to SEK 873.2 (890.9)
million
• Earnings per share for continuing operations, excl. NCI,
was SEK 1.50 (0.91)
• Comprehensive income per share, excl. NCI, was
SEK 1.06 (0.75)
• The Board will propose to the AGM that no dividend be paid.
Q3
Focus, rationalisation and
cost control offset the
uncertainty in the global
economy.
order intake was seK
239.3 (184.1) million.
net sales amounted to seK
252.0 (242.8) million.
operating profit (eBIt) was
seK 15.3 (9.9) million.
Q4
Focus on niche products
and niche areas.
order intake was seK
249.6 (213.9) million.
net sales amounted to seK
272.8 (283.0) million.
operating profit (eBIt) was
seK 5.5 (12.5) million.
3

GRouP oveRvIeW
GRouP oveRvIeW
APPlICAtIons
MARIne & sAFetY:
4
Fire & Gas
Marine
Marine & safety
The business area focuses on the international
shipping industry and offers products and systems in
safety, navigation and the environment. The range
of products includes fire and gas safety systems, integrated
bridge systems, marine voyage data recorders,
ship logs, and radar systems. In the environmental
segment, Consilium markets a number of systems for
measuring exhaust gas emissions from ships.
Fire & Gas
transport
A global company
Fire & Gas
Building
Consilium has a presence in all the most important
countries in shipbuilding, shipping and the oil
and gas industry. With its global organisation,
Consilium is able to offer sales, service and customer
support through its staff in19 countries. Another 50
countries are covered by contracted sales and service
representatives.
navigation
Marine
special niche
products

Fire safety & Automation
The business area focuses on the international oil
and gas industry, particularly in the Middle East,
and offers products and systems for fire safety, and
automation systems for oil and gas facilities. The
product range includes solutions for fire and gas
detection and oil and gas pipeline leak detection, as
well as fire-extinguishing and emergency shut down
systems and instrumentation including control systems
for tank farms and terminals.
APPlICAtIons
FIRe sAFetY & AutoMAtIon:
Fire safety
oil & Gas
Business development
Automation
oil & Gas
Based on its market and technical knowledge,
Consilium has made large investments in new areas
and currently has a number of interesting business
development projects in its portfolio. Some business
development projects have gone far, giving rise to
a separate business area or evolving into a separate
division, while others have resulted in new products
and solutions. This is particularly the case with products
and systems for military vessels, special radar
system for detection of oil spills, port surveillance,
electronic nautical charts and integrated navigational
systems. There are also a number of projects still in an
early development phase.
At the same time, Consilium has also built up a
strong global market organisation. There is significant
potential to exploit this organisation for the sale
of quality supplementary products from external
product suppliers, which in the long term would bring
Consilium significant volume and profit growth.
GRouP oveRvIeW
5

stAteMent FRoM tHe Ceo
stAteMent FRoM tHe Ceo
6
Consilium has developed into a global company
Consilium develops and markets high-quality
products and systems for safety, navigation and
automation. Our products protect people, the
environment and material values. Our vision is for
Consilium to be the customer’s choice when safety
matters. Consilium is a renowned global supplier
with large market shares in selected segments. One in
every two large vessels in the world has a Consilium
product on board.
By means of extensive product and market development
and organic and acquisitive growth, Consilium
has more than tripled its net sales for its present
activities over a period of 10 years and has established
its own operations in 10 new countries and 25 new
locations. We currently have a strong global market
organisation providing service and support to our
customers at 35 locations in 19 countries.
Consilium is now a global company with more
than 90 percent of its sales outside Sweden, and has
over 600 employees in 19 countries. Almost 60 percent
of sales are to customers in Asia and more than
65 percent of employees are based outside Sweden.
Consilium’s global expansion will continue.
It is our firm belief that the combination of quality
products and a strong global organisation with local
service and support creates value for customers. Our
goal is that this will result in us being perceived as a
premium supplier and becoming the customer’s first
choice.
Consilium’s oldest business celebrates its 100-year jubilee
in 2012
Consilium stands for competence and long marine
experience. Consilium’s speed log business started in
1912. Under the name Svenska Aktiebolaget Logg
(SAL), the business evolved into a world-renowned
brand in the marine industry. Several of Consilium’s
other businesses started more than 50 years ago, and
the products are also well-known brands worldwide.
Financial performance
Net sales increased by 6 percent to SEK 978.0 (926.3)
million in 2011.
Operating profit (EBIT) increased by 46 percent
to SEK 54.9 (37.6) million, and the operating margin
was 5.6 percent. Lower costs and increased net sales
have had a positive effect on earnings. Consilium
made staff and cost reductions in 2011 in response
to lower volumes and price pressure in certain
areas, while more resources were invested in niches
and market areas with good growth. This market
adjustment will continue in 2012.
In recent years, market growth has been affected by
a weaker world economy with lower investment and
overcapacity in certain market segments. Despite the
weaker market, Consilium’s net sales have on average
increased by 12 percent annually over the last five
years. The average operating margin over the last five
years has been 6.4 percent.
The Marine & Safety business area now accounts
for approx. 85 percent of the Consilium Group’s
net sales. The Fire safety & Automation business
area represents approx. 15 percent of the Consilium
Group’s revenue, but has considerable growth
potential. Both business areas were affected by the
weak world economy in 2011. Nevertheless, net sales
for the Marine & Safety business area increased to
an all time high in 2011. Net sales for the Fire safety
& Automation business area declined due to delayed
investments in the oil and gas industry.
Order intake per quarter in 2011, SEK millions
179.1
Q1
205.2
Q2
239.3
Q3
249.6
Q4

Marine & Safety business area
The core business consists of safety and navigational
products. Consilium’s market companies also sell
and service external products to make them more
complete local suppliers of products and services to
our customers. Several of Consilium’s products are
also sold to other system suppliers for inclusion in
their own systems.
Consilium develops and markets products and
systems to prevent and control fires and explosions.
Consilium’s systems detect smoke, various gases and
oil mist. We also supply advanced safety management
systems and emergency shutdown systems, as well as
control units for sprinklers. Consilium develops and
markets products and systems for safer navigation.
Consilium’s navigational products and systems in crease
safety with the aid of radar, electronic nautical charts,
voyage data recorders (VDRs), bridge watch alarms
and more.
The total number of sailing vessels in the world and
volume transported by sea is constantly increasing.
This is important for both new construction and the
aftermarket. However, there is overcapacity in several
segments of the merchant fleet, which is resulting
in lower freight rates for shipping companies, and
a decline in new orders to shipyards. A reduction
in orders for new commercial vessels has increased
the price competition in this market. The stronger
Swedish krona has gradually affected Consilium’s
margins. In response, we have reduced our fixed
costs considerably. Even in a weaker market climate,
Consilium has been able to maintain or increase its
market shares.
The Marine & Safety business area currently has
a good balance between different market areas. Net
sales are distributed as follows: new construction
of commercial vessels approx. 30 percent, the
aftermarket approx. 50 percent, specific niches
approx. 10 percent and the land market approx.
10 percent. The expected reduction in deliveries to
new construction of commercial vessels is offset by
increased investments in niche areas and continuing
steady growth for the aftermarket and sales of fire
alarms to the land market.
Sales to new construction of commercial vessels
Consilium used to be more dependent on new construction
of large commercial vessels, but has developed
other market segments during the last five years.
At present, sales of equipment for new construction of
commercial vessels account for approx. 30 percent of
total net sales in the Marine & Safety business area.
Until the middle of 2008, there had been a sharp
increase in orders to shipyards for new construction
of commercial vessels and the shipyards built up large
order backlogs. This was followed by a downturn in
the global economy. Growth in world trade declined
and several countries were hit by recession. New
orders for ships fell sharply, while new construction
Net sales per quarter in 2011, %
Q1
Q2
Q3
Q4
28
26
22
24
remained at a high level due to the large order backlog.
Shipyards were affected by large cancellations
and a decline in new orders, which gradually affected
equipment suppliers like Consilium.
In the long term, demand for sea transport is growing
steadily, but the weakened global economy and
high level of new construction has led to overcapacity
in many vessel segments. Shipping companies’ freight
rates on the spot market have decreased in most vessel
segments. Consilium’s deliveries to new construction
of commercial vessels remained good in 2011, as a
result of long lead times and the large order backlog.
However, the order intake was lower than net sales.
New construction of commercial vessels is expected
to decline by approx. 30 percent in the coming years,
which is partly compensated by a larger share of
gas tankers with higher order value per vessel, and
Consilium is adapting its organisation and market
focus accordingly. Our goal is to maintain or increase
our market shares in the face of more intense competition
in a shrinking market.
Sales to the aftermarket
Sales to the aftermarket are assuming increasing
importance for Consilium. This part of the business
has grown to approx. 50 percent of total net sales
and is achieving steady annual growth. More than 90
percent of the world’s freight is transported by sea.
As a result of the globalised economy, transportation
by sea is increasing at a multiple of world economic
growth. The number of tonnes transported is
expected to increase significantly over the next 10
years. With the construction of increasingly large
ships, the number of vessels is showing a smaller
increase. However, the number of sailing vessels is
increasing constantly. Upgrades and replacements of
old systems, spare parts, servicing and other services
have increased significantly in line with the expansion
of our own global market organisation. Our service
level has increased and the goal is to further increase
sales to the aftermarket.
stAteMent FRoM tHe Ceo
7

stAteMent FRoM tHe Ceo
8
Sales to specific niches
Consilium is increasing its focus on specific niche
products and niche markets, which generally have a
higher level of technology and give higher margins.
Our traditional marine products form the necessary
technology and volume base for this focus. Examples
of new niche products and niche markets include
radar for oil spill detection, radar for safe navigation
in ice-infested waters, network-based voyage data
recorders for easier installation, special precision
logs that allow better fuel economy, SIL-approved
fire alarm systems for offshore, special fire and gas
system for gas tankers, systems for measuring ships’
exhaust gas emissions, special radar products for
military vessels, radar for surveillance of ports and
and sensitive marine areas and fire alarms for trains
and underground train systems.
Our products fit well into these niche markets and
into the global market organisation. At present, sales
to specific niches account for approx. 10 percent of
total net sales in the Marine & Safety business area. It
is our goal to increase the volume significantly.
Sales to the land market
Consilium’s sales of fire alarms for property continue
to show steady growth, and currently represent
approx. 10 percent of total net sales in the Marine
& Safety business area. Our goal is to continue to
increase sales by more than 5 percent each year.
Fire safety & Automation business area
Consilium sells products and systems for fire safety
and automation of tank farms in the oil and gas industry.
As part of our increased focus on specific niches,
the Fire safety & Automation business area’s operations
are now fully focused on the oil and gas industry.
It is in this area that we shall create new products and
grow. Other areas of operation have been discontinued.
End customers are oil companies and owners
and operators of tank terminals. Consilium markets
products and systems to end users and large system
suppliers in Europe, South Korea and China, which
are responsible for major new construction projects
in the Middle East. Some tank terminals have large
global operators, while others are owned, partly
owned or operated by large local and international
oil companies or co-owned by financial investors.
We have a strong position in supplying equipment
and systems to tanker terminals in the United Arab
Emirates. We also see growth potential in Qatar and
Saudi Arabia. In addition, there is significant market
potential in several of the world’s emerging markets.
Offshore sales represent additional potential.
The global market for storage of oil in tank
farms is growing. This is not subject to the same
global regulatory framework as the marine market.
However, safety awareness is growing, and sales of
fire safety systems are gradually increasing in importance.
The life of a tank farm often exceeds 30 years.
Equipment must both be serviced and upgraded.
Fujairah in the UAE is a storage centre for fuel for
ships. Singapore and Rotterdam are other large bunker
ports for fuel for ships. Expanding economies such
as China, India and Brazil are expected to make large
investments in new tank farms. Increased use of natural
gas will lead to investments in tank farms for gas.
Fire safety
The Fire safety division is an advanced engineering
company that specialises in turnkey solutions for fire
safety in tank farms in the oil and gas industry. A
complete fire safety system may include heat detection
in tanks with floating roofs, systems for automatic
fire-extinguishing in tanks with floating roofs, foam
extinguishing systems and high capacity systems that
use seawater for fire-extinguishing. Consilium also
supplies systems for pipeline leak detection and protection
against lightning damage, which is particularly
dangerous in tanks with floating roofs.
Automation
The Automation division specialises in complete turnkey
systems for automation of tank farms in the oil
and gas industry. A complete automation system may
include electrical systems, instrumentation and control
systems for automation of tank farms. The systems
may include fire and gas detection, emergency shutdown
systems, and terminal management system with
tank level measurement, pumps and valves. We have
our own installation of advanced control systems.
The future
Consilium’s strategy over the coming years is to grow
based on the product base and strong global market
organisation that is being built up. Consilium will
achieve growth in its core business, with both proprietary
and external products. Consilium will expand in
its existing market companies and with new market
companies and offices. Consilium will continue to
develop the overall quality of our deliveries and global
service and support to our customers.
Consilium is adapting its costs in response to a
reduced volume of new construction of commercial
vessels, while increasing the focus on specific niche
products with a high technical level and market niches
with large growth potential.
The sovereign debt problems in Europe and the
United States are, in the short term, creating considerable
uncertainty about global economic development
and its impact on our customers’ investments. At the
same time, major changes in certain market segments,
and the general economic problems in Europe and
North America, represent an opportunity for consolidation
in several market and product areas.
April 2012
Ove Hansson
President and CEO

ConsIlIuM’s MARKet oRGAnIsAtIon
Consilium has built up a strong market organisation
over a period of more than 10 years with own
companies and offices strategically located around
the world. The market companies are responsible for
marketing and customer cultivation, sales of products
and systems, spare parts, projecting, as well as local
service and support. Consilium’s own organisation
embraces a total of 35 offices in 19 countries. Given
that more than 90 percent of Consilium’s sales are
generated in the market companies, they play a
central role in the Company’s operations.
Marine & Safety
One of the most important items a shipping company
demands when making an investment decision is
the availability of global service and support, at the
same time as many shipyards prefer to work with a
local supplier. To be present in all important shipyard
and shipping countries in the world is therefore a
prerequisite for submitting tenders both within the
new-construction phase and the aftermarket.
Thanks to Consilium’s geographic scope, which
also covers major international ports and passages, the
global market organisation enables Consilium to hold
a strong position by offering its own service and support
irrespective of where in the world a ship may be.
The presence in expansive regions such as India and
China is also important for Consilium’s cultivation of
the transportation market.
Fire safety & Automation
Business operations are mainly carried out in the
Middle East and are led by Consilium’s organisation
in Dubai, in the United Arab Emirates. Consilium
MARKet oFFICes
sAles RePResentAtIves
is also present with companies in Abu Dhabi (UAE),
Qatar and India. The task of the market companies,
which are principally composed of engineers and other
technical personnel, is to create and cultivate relations
with major customers within the application segments
of the business area. In addition to the sale of products,
integrated systems and software, Consilium also offers
projecting, installation, testing, service, spare parts and
support.
Consilium’s
MArkeT orgAnISATIon
Abu Dhabi
Algeciras
Barcelona
Bilbao
Dalian
Doha
Dubai
Florence
Ft lauderdale
Genua
Glasgow
Gothenburg
Hamburg
Hanoi
Helsinki
Ho Chi Mihn
Hong Kong
Houston
Kochi
long Beach
ConsIlIuM’s MARKet oRGAnIsAtIon
Mumbai
Malmö
naples
oslo
Piraeus
Pusan
Qingdao
Rochester
Rotterdam
shanghai
singapore
stockholm
tokyo
visakhapatnam
Zeebrugge
9

stRAteGIC DIReCtIon
stRAteGIC DIReCtIon
10
vision
Consilium – when safety matters.
Business concept
Consilium develops and markets high-quality products
and systems for applications in safety, navigation and
automation. Consilium offers customers good global
service and support.
Guiding principle
The guiding principle behind Consilium’s products
and systems is to help protect people, the environment
and material values.
Goals
overall goal
Consilium’s overall goal is to exploit the Group’s
expertise, global market organisation, long experience
and impressive innovative ability, in order to be a
leader within selected market and product segments,
thereby creating value for shareholders.
Qualitative goal
Consilium’s qualitative goal is to offer the best
customer value on the market in terms of product
quality and function, high reliability of supply, global
service and support, and an optimised cost structure.
Financial goal
Consilium’s financial goal is is to continue to increase
sales while progressively improving operating margins.
strategies
Group growth
2007 2008 2009 2010 2011
net sales 28% 24% -3% 3% 6%
order intake 30% 29% -23% 6% -2%
operating profit 61% 14% -30% -27% 46%
Increased focus on niche products
and niche markets
With traditional marine products as its technology and
volume base, Consilium is increasing its focus on special
niche products and niche markets, which generally give higher
margins. niche products are developed based on existing
product platforms. these products include special radar for
oil spill detection, precision logs that enable optimised fuel
economy, products for military vessels and fire alarms for
trains and underground railway systems.
Consilium has a broad product base and a strong
market organisation from which to grow. Profitable
growth will be created in the form of organic growth
and acquisitive growth (acquisitions, partnerships
and alliances). Growth initiatives will be focused on
product and market areas where Consilium has a
leading position or has the potential to take such a
position.
The strategies are to:
– focus on selected market and product areas
– develop the global organisation
– offer the best customer value on the market
– be a competitive supplier with a high level of
service
– be an innovative supplier and stay at the forefront
of technical development
– constantly strive to improve the Company’s
processes and increase productivity
– leverage economies of scale in the Group’s total
offering
– exploit the global market organisation for the sale
of supplementary external products
– seek value-creating alliances and partnerships
– continuously improve the Group’s bank of
expertise
– be an attractive employer, providing interesting
work and opportunities for personal development.

Marine & safety
Consilium’s products and solutions for the maritime market can be divided
into two phases – new construction and aftermarket (retrofit and after
sales). In the case of new construction, it is normally the shipyard that
makes investment decisions, which means it is important to appear on the
shipyards’ makers’ list.
the aftermarket, with sales of replacement products (retrofit), spare
parts, servicing and other services, represents an increasingly important
part of the market. In the after-sales phase, the shipping company or
the management company responsible for operation of the vessel is the
customer. A global market organisation is a major competitive advantage
in supplying products and services to vessels that are in constant motion
on the oceans.
sales of fire protection solutions for trains and underground railway
systems are to train manufacturers and train operators. It is important to
have both a local presence and a global organisation.
Business model
FIre SAFeTy & AuToMATIon
GeoGRAPHICAl MARKet
Asia (Middle east, India)
MARKet PHAse
new construction
expansion
Aftermarket
AReA oF APPlICAtIon
Fire safety oil & Gas
Automation oil & Gas
oFFeRInG
own systems based on external products
external safety products
sAles AnD DelIveRY
own market organisation
CustoMeRs
oil and gas companies
Contractors in the oil and gas industry
owners of tank terminals
Business model
MArIne & SAFeTy
GeoGRAPHICAl MARKet
Asia
europe
north and south America
Africa
Australia
MARKet PHAse
new construction
Aftermarket
AReA oF APPlICAtIon
Fire & Gas Marine
Fire & Gas transport
Fire & Gas Building
navigation Marine
special niche products
oFFeRInG
own products and systems
external products
own products and third-party systems
sAles AnD DelIveRY
own global market organisation
sales and service representatives
CustoMeRs
shipyards
shipping companies
Management companies
system suppliers
Fire safety & Automation
stRAteGIC DIReCtIon
Consilium’s business model for the Fire safety & Automation business
area is in many ways similar to that of Marine & safety. Although the
business area’s main demand has been for new construction and expansion
or retrofitting, there has been a recent rise in demand for aftermarket
services (after-sales). the business area has two main types of customers.
In the area of new construction, Consilium’s customers are often large
contractors with overall project responsibility. In the area of retrofitting,
expansion and other services, customers are primarily large oil and gas
companies and owners of tank terminals.
11

MARIne & sAFetY BusIness AReA
the Marine & safety business area offers products and systems in
the areas of safety, navigation and environment for international
shipping, train and underground railway systems and large buildings.
operations are organised in a number of divisions which are
responsible for developing, manufacturing and maintaining products
and systems, global marketing, developing marketing concepts,
producing marketing materials and technical documentation and
giving support to the Group’s sales and service companies.
marine & safety
12

Consilium’s offering
Consilium has a competitive product portfolio of
proprietary products and systems, supplemented
by high-quality external brands. The Company
has a leading position in several product segments,
particularly in market share, but also in terms of
innovative solutions.
Products and solutions are primarily intended for
international commercial shipping. However, over the
years, Consilium has developed solutions for other
applications based on existing products. These include
fire protection for the transport sector, with the main
focus on trains and underground railway systems.
Fire & Gas Marine
Consilium is one of the world’s leading suppliers of
marine safety systems. The Company offers a number
of products and systems designed to protect people,
the environment and material values. These systems
are among the most widely used in the world and
are the first choice for many leading shipyards and
shipping companies. The product portfolio includes
fire alarm systems, gas detection products and systems
and integrated display systems.
Over the years, Consilium has launched several
innovative solutions and was the first company in the
world to offer an integrated turnkey solution for fire
and gas detection on board ships. Consilium has also
recently launched a number of new safety products,
including oil mist detection in engine rooms.
navigation Marine
Consilium is one of the world’s leading suppliers of
navigational products. The Company offers a number
of products and systems designed to ensure safe
navigation. Consilium’s products and systems are
well proven and have, in many cases, a long tradition.
The product portfolio includes navigational radar,
speed logs, marine voyage data recorders (VDRs) and
electronic navigational and information systems.
Over the years, Consilium has launched several
innovative solutions and was the first company in the
world to offer an integrated turnkey solution for
fire and gas detection on board a vessel.
MARIne & sAFetY BusIness AReA
13

MARIne & sAFetY BusIness AReA
14
Order intake, SEK millions
705.2
07
826.5
08
776.4
09
The Company is also able to combine both its
own products and external products into integrated
bridge systems. Consilium also offers tailored
products for specific niche segments, such as military
marine products and systems, special radar for port
surveillance and different communication products.
special niche products
With the bank of knowledge and experience
Consilium has built up as a world-leading supplier of
radar systems and gas detection in marine environments,
the Company is also able to offer a number
of environmental products and systems. Consilium
offers a number of systems for measurement of gas
emissions from ships. These systems use various techniques
to measure the presence of nitrogen oxides,
757.5
10
839.5
11
Geographical distribution of
net sales in 2011, %
3
9
Consilium has development units in sweden and Italy.
the units focus on the development of new products and
solutions, and on improving the existing product portfolio.
Product development is an important component of overall
business development, and on several occasions has resulted
in Consilium successfully finding new applications for existing
products and developing variants in order to open up new
markets.
For a number of years, Consilium has worked to develop
a common technological platform for the business area’s
total offering, which has also included the development of
processes, methods and tools. the new platform includes
both hardware and software and represents the basis of
Consilium’s offering.
33
Asia
Rest of Europe
North America
Sweden
Other markets
Research & development
7
48
sulphur dioxide and carbon dioxide in emissions.
The Company also offers systems that can indicate
impaired performance in a ship’s machinery.
In addition, Consilium has recently launched a
radar solution called Oil Spill Detection Radar, which
makes it possible to detect oil spills with ordinary
type-approved navigational radar.
the marine market
There are over 100,000 commercial vessels and ships
operating around the world. The global merchant
fleet accounts for more than 50,000 of these vessels.
The vessels are registered in over 150 countries,
making shipping one of the world’s most international
industries.
World trade and shipping
About 90 percent of world trade is transported
by ship. The need for efficient maritime transport
is increasing in pace with globalisation, and the
growth of merchant shipping and world trade are
closely linked. Demand for new ships is governed
by development in world trade and its transport
needs. A reasonable estimate is that demand for
transport increases about twice as quickly as world
trade growth. Demand is also driven by shipping
companies’ needs to modernise their fleet when ships
are too old or have high running costs.
Developments in 2011
2011 was a year of natural disasters with devastating
consequences, political unrest in the Middle East
and economic developments in the United States and
Europe which reversed the global recovery that had
been in progress since the financial crisis in 2008.
new offerings
An important advantage of the new platform is that it,
together with the overall concentration of the product
range, gives Consilium the ability to resolve more tasks with
fewer product variants.
As Consilium develops new and, in many cases, larger
systems, it is increasingly common for certain components
to come from external product suppliers. the composition
of proprietary and external products in integrated systems
and product adaptation play a key part in the Company’s
development work.

These and several other factors have affected global
trade growth, and will eventually have an impact on
the international shipping industry. At the same time,
a record number of new vessels have been delivered
under strong price pressure in an overcrowded
market, particularly in certain segments.
Global GDP grew by approx. 4 percent and world
trade by almost 7 percent in 2011. The global growth
engine consists largely of emerging markets, headed by
China and India. During a weak economy and financial
turmoil, the United States and Europe reduce their
imports, which means Chinese and Indian exports are
affected, growth slows down, and world trade declines.
This in turn reduces demand for seaborne transport.
Segments such as containers and tankers are
particularly affected in a weak economy, while others,
such as bulk carriers and naval warships, show only a
slight or moderate decline. However, it is also important
to remember that although the situation of many
could be described as serious, the earth continues to
rotate around its axis, and world trade continues to
expand, albeit at a slower pace.
regulatory frameworks
While world trade and demand for transport govern
growth in newbuild orders, international regulations,
notably the regulations laid down by the IMO (International
Maritime Organisation), govern growth in
shipborne equipment.
The IMO is a UN agency which was established
in 1948 to provide a common standard for shipping.
The IMO has established a large number of conventions
aimed at minimising near-misses, fatal accidents
In addition, Consilium has recently launched a radar solution
called oil spill Detection Radar, which makes it possible to
detect oil spills with ordinary type-approved navigational radar.
and shipping’s environmental impacts. New rules are
developed and implemented on an ongoing basis, and
these progressively drive demand for approved newly
developed products and solutions.
Action to reduce greenhouse gas emissions is one
of several areas becoming increasingly relevant in
reducing shipping’s environmental impacts. Both the
IMO and individual countries and regions, such as the
EU, are progressively introducing tighter legislation.
In consequence, we are also seeing growth in demand
for measures that improve vessels’ energy efficiency.
Customers
Consilium’s customers are mainly international shipping
companies and shipyards. Asia is by far the
world’s predominant shipbuilding region, with China,
South Korea and Japan the three leading shipbuilding
nations. Together, the three countries represent more
than 90 percent of the world market. In Europe, there
are a number of important shipyards in Germany,
Italy, Spain and France. Other countries are important
in certain segments, such as Finland (cruise ships) and
the United States (naval warships).
exAmples of CuSToMerS
sHIPYARD loCAtIon
Hyundai
Daewoo
Fincantieri
Dalian
sWs
universal
tsuneshi
DCns
south Korea
south Korea
Italy
China
China
Japan
Japan
France
sHIPPInG CoMPAnY loCAtIon
essberger
Mol
Atlantic Bulk Carrier
AP Möller
nCl
Wilhelmsen
stena
Germany
Japan
Greece
Denmark
us
norway
sweden
MArkeT ShAreS, in BRief
MARIne & sAFetY BusIness AReA
PRoDuCts estIMAteD MARKet sHARe
Fire alarm systems
Gas detection systems
emission measuring systems
Marine voyage data
recorders (vDRs)
speed logs
navigational radar/radar systems
~45%
~40%
~25%
~15%
~20%
~5%
15

MARIne & sAFetY BusIness AReA
16
In the global shipping sector, the largest shipping
nations are Greece, Japan and Germany, followed by
China and South Korea. Together they control more
than half of the world market. Consilium’s customer
list includes the largest shipping companies and the
largest shipyards in the world.
Competition
Consilium operates in a market dominated by
tough competition in many cases. However, few,
if any, competitors can match Consilium’s global
reach. In fire and gas alarm systems, competition is
concentrated in Asia, as the majority of sales are to
the shipbuilding industry there.
In navigational products, there are more competitors,
both small and large, and often more locally
established. In this segment, there are also a small
number of large suppliers of integrated navigation
systems and ships’ bridges which have a global reach.
Positioning and differentiation
In many of its products and systems, Consilium has a
market-leading position. Even though the market has
Trains and metro cars are highly challenging
environments. fire protection in these
environments must be able to cope with
extreme pressure such as pollution, vibrations,
temperature variations and interference from
other equipment.
been weak for some time, the Company has generally
been able to retain its market shares, and in some
cases increase them.
It is important for Consilium to position itself
and differentiate its offering in order to maintain or
expand its market share, reinforce its leading position
and avoid finding itself in a negative price spiral.
Consilium’s business strategy has concentrated
operations on market areas where the Company has
the potential to reach world-class level. Consilium
is currently a leading supplier, or sees opportunities
to become a leading supplier, in most of its selected
markets.
Consilium bases its sustainable competitiveness on
four components aimed at offering the best customer
value on the market.
• Innovation – in existing and new offerings.
• Quality – through quality-assured development and
production.
• Reliability of supply – in terms of production and
distribution.
• Service and support – global offering through local
presence.
Consilium has achieved its leading position by means
of unique expertise and a portfolio of products
and systems that are without equal on the market.
Consilium’s offering is strengthened by a number of
fundamental characteristics.
• Premium selection – Consilium will be one of the
leading suppliers in the world.
• Tradition and experience – products with a
pedigree stretching back 50-100 years.
• Technical level – Consilium’s products and
solutions will have a high technical level.
• Focus on safety – protecting people, the
environment and material values, and offering
safe navigation.
• Environmental awareness – constantly seeking
opportunities to help reduce environmental
impacts.
Fire & Gas transport
Consilium offers fire protection for trains and metro
cars. These operations constitute a separate division in
the Marine & Safety business area and are the result
of successful business development over a number of
years.
Consilium’s offering
Trains and metro cars are highly challenging environments.
Fire protection in these environments
must be able to cope with extreme pressure such as
pollution, vibrations, temperature variations and
interference from other equipment. Consilium offers
a fire protection system that is based on advanced
technology developed for extreme marine environments
and installed in vessels such as submarines. The
technology has proved highly suitable for trains.
Consilium’s systems can be connected directly to
a train’s own computer in order to monitor compartments,
cable installations and engine areas, and

offer functions that control automatic extinguishing
and the train’s movement. The latter has proved very
valuable for trains that go through tunnel systems.
The system has been successfully installed in several
markets around the world and its high flexibility
enables it to be adapted to different regulations and
requirements.
The transport market
The transport market consists of passenger and
freight transport systems. Consilium has concentrated
its offering on the market segment that includes trains
and underground railway systems.
Increased population growth has generated demand
for safe and efficient systems and has prompted many
countries to make major infrastructure investments
in new rail networks. This is particularly the case
in rapidly developing countries, such as China and
India, where new trains and underground systems are
required in order to meet demand for faster transport
and stimulate continuing growth.
In a global perspective, the train market is very
large. The maturity of safety varies from country to
country and development of railway and underground
networks gives rise to reviewed legislation and regulations.
This is also a major driver, generating increased
demand for effective safety solutions. Demand for
transporting goods by rail is rising significantly, with
the growth being driven by both cost and environmental
considerations. With increased transport network
capacity, this part of the market is likely to
experience further growth.
Customers and competition
Consilium’s customers include manufacturers of
trains and metro cars, such as Bombardier, Alstom
and Hitachi. In the space of a few years, Consilium
has developed a strong market position, and in the
important Chinese market, for example, the Company
has an estimated market share of over 50 percent
of fire protection systems for high-speed trains.
Competition in the train segment consists of a number
of large international fire and safety companies and
local players.
Fire & Gas Building
Some of the security products and systems Consilium
offers to the marine and transport markets are
also offered in the area of fire protection for large
buildings. Consilium offers most of its products and
systems in this area to customers in Scandinavia.
Operations are conducted under a joint venture,
“CN System”, with the Japanese company Nittan
Ltd. In addition, Consilium has three partly owned
sales companies in Sweden.
Customers
Consilium’s customers are installation companies
which take on major contracts, large security
companies, such as G4S and Niscayah, and companies
that supply advanced fire-extinguishing and sprinkler
systems.
Typical installations include protection of large
industrial properties, hospitals, schools and hotels.
Consilium has a very strong range of products and
solutions, with renowned and tested systems that meet
international standards and requirements. Consilium
also offers gas detection systems, with the main
demand coming from the pharmaceutical and aviation
industries.
MARIne & sAFetY BusIness AReA
17

FIRe sAFetY & AutoMAtIon BusIness AReA
the Fire safety & Automation business area offers
products and systems in fire safety and automation
systems for oil and gas plants. the operations are
organised in two divisions, which are responsible for
developing and upgrading the business area’s system
offering, marketing and producing marketing material,
marketing concepts and technical documentation, as
well as purchasing and project management.
fire safety &
Automation
18

Consilium’s offering
Consilium provides the oil and gas industry with
complete systems and products in the areas of fire
safety and automation. The Company has established
a solid reputation on the market and is perceived as
a reliable and professional player by customers and
product suppliers alike.
Consilium’s turnkey solutions cover the entire
value chain from planning and design to installation,
training and documentation. Maintenance, customer
support and development of software for new and
existing installations are also important parts of the
total offering.
In many cases, Consilium’s deliveries to customers
are a combination of automation and fire safety
solutions.
Fire safety oil & Gas
Consilium offers a complete safety programme with
turnkey solutions for fire and gas detection, detection
of leaks in oil and gas pipelines and fire protection
systems, including fire extinguishing and emergency
shutdown.
Consilium is also the exclusive representative of
some of the world’s leading and most innovative
suppliers in specific niche areas. One such example is
systems for protection against lightning strikes in tank
farms.
Automation oil & Gas
Consilium’s automation products and solutions cover
project engineering, control and regulation systems,
instrumentation and installation and maintenance
services. The Company is able to offer automation
solutions for most applications in the oil and gas
industry – from refineries and oil depots to airports
and the petrochemical industry.
Consilium has its own design department which
builds systems based on external products. Typical
solutions include tank farm inventory management,
terminal automation systems and control systems for
different types of oil and gas plants.
Consilium is one of the few companies with the
capacity and knowledge to deliver the solutions
and additional services customers in the oil and
gas industry require.
FIRe sAFetY & AutoMAtIon BusIness AReA
19

FIRe sAFetY & AutoMAtIon BusIness AReA
20
Net Sales, SEK millions
38.0
07
95.2
08
121.1
09
oil and gas industry
Oil and natural gas, together with coal, are the
dominant energy sources in the world and, as such,
among the largest commodities traded between
countries. From oil we obtain products that include
petrol, diesel and kerosene, which means the entire
transport sector is essentially dependent on oil and
oil-based fuels. Oil is also still the single most important
energy commodity and it alone covers more than
1/3 of the world’s energy needs.
Natural gas was initially considered simply a byproduct
of oil extraction, but has now grown as a
source of energy, with its importance matching that
of oil and coal in many respects. Natural gas is used
mainly as fuel in power and heating plants and as a
raw material for chemical production.
168.8
10
138.5
11
exAmples of CuSToMerS
enD CustoMeRs loCAtIon
ADnoC
Gulf Petroleum
enoC
Qatar Petroleum
Gulf Petrochem
voPAK
tAKReeR
Abu Dhabi
Qatar
Dubai
Qatar
sharjah
netherlands
Abu Dhabi
ContRACtoRs DoMICIle
tAtA
Belleli
Punj lloyd
exterran
sepam
larsen & tourbro
nico International
Geographical distribution of
net sales in 2011, %
Asia
India
Italy
India
usA
Italy
India
Dubai
100
More than 60 percent of the world’s oil resources
are in the Middle East and the region also contains
40 percent of the world’s natural gas reserves. With
approx. 20 percent of total global reserves, Venezuela
is the country with the largest oil reserves, having
recently overtaken Saudi Arabia. Other major oilproducing
countries are Canada, Iran and Iraq. The
countries with the largest supply of natural gas are
Russia, Iran and Qatar. China is another country with
a large oil and gas industry.
The oil and gas industry
The oil and gas industry represents a key driver of
the global economy. The oil industry is dominated by
state-owned companies which account for more than
half the world’s production and almost 90 percent
of the total oil reserves. Four out of the world’s five
largest oil companies are state-controlled. Looking at
the industry as a whole, 50 producers are responsible
for almost 80 percent of daily oil production, and
over half of these are under state ownership.
The Iranian state-owned oil company NIOC is the
world’s single largest oil producer. The company is
also the largest exporter of natural gas in the world.
The Saudi state-owned company Saudi Aramco is the
world’s second-largest oil producer and has the largest
oil reserves. In third place is Qatar General Petroleum
Co, which also has significant natural gas deposits.
Trends and development
Despite the current uncertainty in the global economy,
major oil and gas infrastructure investments are
predicted in the Middle East and other parts of the
world, as a result of growing demand from emerging
economies, particularly China and India. The IEA
(International Energy Agency), which is the OECD
countries’ cooperation body for energy issues,

predicts that energy demand in Asia will double by
2035, while demand in OECD countries will remain
constant during the same period.
The strongest driver is an expected doubling of
the transport sector in emerging economies – a sector
which is entirely dependent on oil and petroleumbased
fuels. However, the lack of alternative energy
sources and growing uncertainty about nuclear power
is increasing dependency on oil in several dimensions.
Customers
Consilium’s customers are local or international contractors
or end customers, such as large national and
international oil and gas companies, and owners of
tank farms, based or operating in the Middle East.
Several of the large contractors are global players
and are represented by local offices. A local presence
and end-customer servicing are important success
factors, and it is also important to have good contacts
with contractors.
Competition
In the oil and gas industry, there are only a few companies
with the capacity and knowledge to deliver the
solutions and additional services customers require.
Competition in fire safety systems comes from both
local companies and international system suppliers.
Competition in small and medium-sized automation
systems is mainly local and comes from local companies.
For the very largest projects, large international
companies come into the picture, although Consilium
rarely encounters these players in tendering processes.
As in many other industries, competitors may also
be partners, as the competitive situation can vary
from project to project. In Consilium’s case it can
happen that companies that compete in some projects
may also be customers or suppliers in others.
Positioning and differentiation
Consilium is an established but small player in a very
large market. Growth potential is good, although
there is tough competition from local players and
international suppliers.
Nevertheless, Consilium’s strategy of concentrating
operations on market areas where the Company has
the potential to reach world-class level also applies
to the Fire safety & Automation business area.
Consilium bases its sustainable competitiveness on
a number of components aimed at offering the best
customer value on the market.
• Technical level – with well-trained personnel who
understand and are able to resolve customers’
problems.
• Quality – with carefully selected suppliers and
optimised system integration.
• Broad offering – with a compete product
programme.
• Cost-efficiency – premium systems delivered by an
effective organisation.
• Environmental awareness – constantly seeking
opportunities to help reduce environmental impacts.
Consilium’s potential for future growth in markets
other than the Middle East is high, particularly in
more than 60 percent of the world’s oil resources
are in the middle east and the region also contains 40
percent of the world’s natural gas reserves.
countries with substantial imports and exports of oils
and gas. India, China and other regions of South East
Asia are parts of the world that may be most relevant
to Consilium. This is partly because of the Company’s
geographical presence and developed contacts, and
partly due to the fact that this is the part of the world
with the strongest growth.
Quality work
For Consilium, quality work is of highest priority.
The Company’s products and systems are often
found in extreme environments and the installations
Consilium works with handle large values.
The business area’s quality work is established in
the purchasing and design phases. Consilium also
aims for continuous improvement in the production
and delivery process, with the golden rule being to
always make every effort to exceed the customers’
expectations. High product quality, optimised
system integration and good reliability of supply are
particular focus areas.
FIRe sAFetY & AutoMAtIon BusIness AReA
21

tHe sHARe
tHe sHARe
22
Consilium’s B shares were admitted to trading on
the o list of the stockholm stock exchange in May
1994. In 1995, the Company’s shares were moved to
the A list of the stockholm stock exchange. In spring
2003, the shares returned to the o list. Following
the reorganisation of the stockholm stock exchange,
Consilium’s shares are now quoted on the nAsDAQ
oMX stockholm small Cap list.
Consilium’s share capital at 31 December 2011
amounted to SEK 58,511,015, divided into
11,702,203 shares (par value SEK 5). Class A shares
(907,490) carry entitlement to 10 votes, while the
entitlement for class B shares (10,794,713) is 1 vote.
All shares carry equal entitlement to a share of the
Company’s assets and profits.
Liquidity provider
In 2008, Consilium signed an agreement with
Remium AB for the purpose of improving the
liquidity of the Consilium share. As liquidity provider,
Remium ensures a specific spread – the difference
between the bid and ask price for the Company’s
60
50
40
30
20
10
2007
2008
Consilium B
OMX Stockholm 30
A�ärsvärldens Generalindex
2009
Number of shares traded, in thousands
shares. At the same time, liquidity is added to the
order book by a guaranteed volume of trading in the
shares. The aim of the guarantee is to minimise sharp
price fluctuations caused by individual transactions
and to stimulate trading. For the shareholders, this
ultimately means better price information and a more
accurate market valuation of the Company’s shares.
Under Nasdaq OMX’s regulations, liquidity
providers are required to post bid and ask prices on
at least 4 units of trading, to ensure the spread does
not exceed 4 percent. The rates must be posted during
a minimum of 85 percent of regular trading hours. As
Consilium has a liquidity provider, the designation (LP)
appears next to the Company on stock exchange lists.
Share price development
The share fell by 33 percent during the year, starting
on SEK 26.10 and ending on SEK 17.50 at 31
December 2011. In the same period, the Affärsvärldens
Generalindex (AFGX) fell by 18.1 percent
and the OMX Stockholm 30 Index by 16.1 percent.
The highest price paid for the Consilium share
during the year was SEK 26.30 and the lowest was
2010
2011
SIX TELEKURS ©
1,200
1,000
800
600
400
200
0

SEK 14.70. At the end of 2011, Consilium’s market
capitalisation was SEK 189 million.
Turnover
2,013,097 shares were traded during the year at a
value of SEK 38,026,479, which corresponds to a
turnover rate of 18 percent.
Shareholders
The number of shareholders at 31 December 2011
was 1,738 (2,004).
Warrants
600,000 warrants were issued to key management
personnel in the Group and 95,000 of these warrants
have been subsequently repurchased. Each warrant
entitles the holder to subscribe for one new B share
in the period 1 January 2012 to 30 June 2012. The
largest shareholders
subscription price was SEK 2.47 per warrant and the
exercise price is SEK 68.20 before adjustments for
share issues.
Dividend policy
Consilium’s Board has decided that a cautious dividend
policy will be adopted during an anticipated growth
phase. The dividend will eventually correspond to onequarter
of profit after net financial items and tax.
Proposed dividend
The Board will propose to the AGM that no dividend
be paid for the 2011 financial year. The proposal is
based on the continuing uncertainty about the global
economic recovery.
A shares B shares Holding votes
platanen Holding B.V. 1) 907,490 3,763,448 39.9% 64.6%
mCT Brattberg Aktiebolag 2,023,000 17.3% 10.2%
placeringsfond nordea 754,326 6.4% 3.8%
danica pension 507,041 4.3% 2.6%
msil ipB Klientkonto 280,026 2.4% 1.4%
erik penser Bankaktiebolag 189,424 1.6% 1.0%
unionen 177,804 1.5% 0.9%
Avanza pension 165,968 1.4% 0.8%
ove Hansson 100,086 0.9% 0.5%
six sis AG 90,744 0.8% 0.5%
Total 907,490 8,051,867 76.6% 86.2%
1) Rosenblad family, related party.
Per-share data
Amounts in seK millions 2011 2010 2009 2008 2007
share price 18 26 29 37 43
earnings per share, before
and after dilution, seK 1.06 0.75 0.28 2.37 2.94
p/e ratio 17 35 104 16 15
equity per share before dilution, seK 23.6 22.7 25.9 22.6 22.7
equity per share after dilution, seK 23.6 22.7 25.9 22.6 22.7
share price/equity, % 65 98 97 136 190
dividend, seK – – 0.35 0.50 0.75
dividend yield, % – – 1.2 1.4 1.7
number of shares 11,702,203 11,702,203 11,702,203 10,902,203 10,902,203
Distribution of ownership
Holding
number of
shareholders votes
1-500 1,088 62.6%
501-1,000 283 16.3%
1,001-5,000 246 14.2%
5,001-10,000 54 3.1%
10,001-15,000 18 1.0%
15,001-20,000 9 0.5%
20,001- 40 2.3%
Total 1,738 100.0% As of 31 december 2011.
AKtIen
23

MultI-YeAR oveRvIeW
MultI-YeAR oveRvIeW
Consolidated income statement 1)
Amounts in seK millions 2011 2010 2009 2008 2007
net sales 978.0 926.3 897.5 921.7 743.2
operating expenses -923.1 -888.7 -845.9 -848.2 -678.7
operating profit 54.9 37.6 51.6 73.5 64.5
financial items -16.5 -14.9 -11.6 -11.8 -11.7
Profit after financial items 38.4 22.7 40.0 61.7 52.8
1) Continuing operations.
Consolidated balance sheet
Amounts in seK millions 2011 2010 2009 2008 2007
Assets
property, plant & equipment 32.8 40.3 46.2 48.0 21.2
intangible assets 165.9 164.2 159.7 139.3 96.7
financial assets 68.2 74.6 50.7 46.1 50.9
inventories 166.9 154.7 145.1 161.5 135.6
Receivables 297.2 296.3 296.4 336.3 278.4
short-term investments – 8.4 – – –
Cash & cash equivalents 36.3 36.3 48.0 60.3 32.4
Total assets 767.3 774.8 746.1 791.5 615.2
equity 276.0 265.8 300.0 279.8 247.3
Liabilities
non-interest-bearing non-current provisions 22.0 15.4 13.2 7.9 14.0
non-interest-bearing non-current liabilities – 22.1 0.4 0.3 0.3
interest-bearing non-current liabilities 109.0 127.4 129.2 116.8 98.2
non-interest-bearing current provisions – 6.5 5.0 5.9 13.2
non-interest-bearing current liabilities 227.3 222.8 238.2 300.2 190.9
interest-bearing current liabilities 133.0 114.8 60.1 80.6 51.3
Total liabilities 491.3 509.0 446.1 511.7 367.9
Total equity and liabilities 767.3 774.8 746.1 791.5 615.2
24
Order intake, SEK millions
849.4
07
1095.1
08
843.3
09
890.9
10
873.2
11
Net sales, SEK million
743.2
07
921.7
08
897.5
09
926.3
10
978.0
11
Operating profit, SEK million
64.5
07
73.5
08
51.6
09
37.6
10
54.9
11
Number of employees
382
07
528
08
560
09
560
10
602
11

KeY FIGuRes AnD DeFInItIons
Key figures and financial ratios
KeY FIGuRes AnD DeFInItIons
Amounts in seK millions 2011 2010 2009 2008 2007
eBiTdA, seK million 91.3 72.0 82.0 100.6 85.7
eBiT, seK million 54.9 37.6 51.6 73.5 64.5
eBT, seK million 38.4 22.7 40.0 61.7 52.8
operating margin, % 5.6 4.1 5.7 8.0 8.7
profit margin, % 3.9 2.5 4.5 6.7 7.7
Return on operating capital, % 12.0 7.8 10.8 18.8 19.3
Return on equity, % 10.2 7.1 8.8 16.5 16.6
dividend yield – – 1.2 1.4 1.7
p/e ratio 17 35 104 16 15
equity/assets ratio, % 36 34 40 35 40
Risk-bearing capital, % 36 34 40 35 40
debt/equity ratio, % 75 77 47 71 60
Quick ratio, % 96 99 114 103 116
earnings per share, before and after dilution, seK 1.06 0.75 0.28 2.37 2.94
equity per share, before dilution, seK 23.6 22.7 26.9 22.6 22.7
Capital expenditure, seK million 30.6 40.0 49.0 96.4 55.3
earnings per share, seK – – 0.35 0.50 0.75
number of employees 602 560 560 528 382
Definitions
Return on equity
profit/loss after financial items, less current tax, divided by
average equity.
Return on operating capital
operating profit/loss divided by average operating capital.
Dividend yield
dividend proposed by the Board and Ceo for the
financial year divided by the share price.
eBItDA
earnings before interest, taxes, depreciation and
amortisation.
eBIt
earnings before interest and taxes.
eBt
earnings before taxes.
equity per share after dilution
equity, plus convertible note loans, divided by the total
number of shares after conversion.
equity per share before dilution
equity divided by the number of shares at the reporting
date.
Quick ratio
Current assets (excl. inventories) divided by current
liabilities.
operating capital
Total assets, less cash & cash equivalents (cash, bank
deposits and other financial assets) and non-interestbearing
liabilities, calculated as an annual average.
P/e ratio
share price divided by earnings per share.
earnings per share
profit after tax attributable to owners of the parent
divided by the weighted average number of shares.
Risk-bearing capital
equity and convertible note loans divided by total assets.
operating profit
earnings before interest and taxes. same as eBiT.
operating margin
operating profit/loss divided by net sales.
equity/assets ratio
equity, including non-controlling interest, divided by total
assets.
Debt/equity ratio
interest-bearing liabilities (excl. convertible note loans and
interest-bearing provisions), divided by equity.
Profit margin
profit after financial items divided by net sales.
25

BoARD oF DIReCtoRs’ RePoRt
BoARD oF DIReCtoRs’ RePoRt
The Board of Directors and CEO of Consilium AB (publ), reg.
no. 556480-3327, herewith present the consolidated and parent
company’s annual financial statements for the 2011 financial year.
Consilium develops and markets products, services and systems
for safety, navigation and automation applications. With a stable
base of proprietary products, complemented by high-quality
external brands, and a global market organisation, Consilium
ranks among the world’s leading suppliers to international shipping
and the oil and gas industry. The guiding principle behind
Consilium’s products and systems is to help protect people, the
environment and material values.
Consilium also markets products and systems for other industries
with applications which are well-suited to the Company’s
products, systems and application expertise. Consilium’s product
companies are responsible for product development and have
overall responsibility for global marketing and sales. The local
market companies are responsible for local marketing, sales,
project design and service and support to customers.
Consilium group
Net sales for continuing operations totalled SEK 978.0 (926.3)
million in 2011, which is an increase of 6 percent compared
with the previous year. EBITDA (earnings before interest, tax,
depreciation and amortisation) amounted to SEK 91.3 (72.0)
million, which is 27 percent higher than in the previous year.
EBIT (earnings before interest and tax) was SEK 54.9 (37.6)
million, which is 46 percent higher than in the previous year, with
increased net sales and lower costs having a positive effect on the
result. EBT (earnings before tax) was SEK 38.4 (22.7) million,
which is 69 percent higher than in the previous year.
The Marine & Safety business area’s income for the fourth
quarter was adversely affected by costs and provisions of SEK 2
million for implemented staff reductions. The Group’s comprehensive
income for the fourth quarter was also affected by costs
and provisions of SEK 4 million relating to discontinued operations
in the Fire safety & Automation business area.
Both operating profit and net financial items were affected by
significant exchange rate fluctuations (mainly EUR and USD)
during the period. The stronger Swedish krona gradually eroded
Consilium’s margins. The Company’s financial position is strong,
with an equity/assets ratio of 36 percent.
Consilium has rationalised its operations and made significant
cost reductions in response to the uncertain economic situation.
As a result, annual fixed costs have been reduced by almost SEK
20 million. At the same time, the Company has continued its
long-term emphasis on product development and strengthening
the global market organisation.
The order intake for 2011 was SEK 873.2 (890.9) million,
which is 2 percent down on the previous year. The decline
is attributable to a lower order intake for the Fire safety &
Automation business area. Consilium’s order backlog remains
strong and stood at SEK 525 million at 31 December 2011.
Focus on core business
Consilium will increase the focus on growth in its marine core
business. Within this framework, Consilium will increase its focus
on niche products and niche markets. Consilium’s core business
in the area of marine products is based on safety. Consilium
offers quality products with global support close to the customer.
26
Consilium’s marine safety products consists of products and
systems for the prevention and control of fire and explosions.
Consilium’s systems detect smoke, various types of gases and
oil mist. We also supply advanced safety management systems
and control centres for sprinklers. Consilium marine safety
products also comprise products and systems for safer navigation.
Consilium’s navigational products and systems increase safety
with the aid of radar, electronic nautical charts , voyage data
recorders (VDRs), bridge watch alarms and more.
Consilium market companies represent a cornerstone of the
Company’s global organisation. They can also complement
the Company’s range with external products to make them
more complete local suppliers of products and services to our
customers. Consilium will continue to expand our global service
and sales organisation. Fire alarm systems for trains and subways
are well-suited to the product mix, and sales of fire alarms
to the land market are growing continuously. Sales to these niche
markets make an important contribution to the marine business
volume. As part of Consilium’s increased focus, the Fire safety
& Automation business area’s operations are now fully focused
on the land-based oil and gas industry. With sales of fire safety
systems having gradually increased in scope, the business area
has now been given the more appropriate name Fire safety &
Automation (formerly Automation). Other areas of operation
have been discontinued.
Consilium sees good growth potential in its other marine product
areas, and will continue to develop these as long as they are able to
significantly increase the value of the Company’s investment. For
some of these marine products, the Company is seeking the right
partners in order to achieve faster volume and value growth.
Focus on niche products and niche markets
Consilium is increasing its focus on specific niche products and
niche markets, which generally give higher margins. Traditional
marine products form the necessary technology and volume base
for this focus. Existing product platforms are used as the basis for
developing niche products. Examples of of new niche products
and niche markets include radar for oil spill detection, radar for
safe navigation in ice-infested waters, network-based voyage data
recorders for easier installation, special precision logs that allow
better fuel economy, SIL-approved fire alarm systems for offshore,
special products for military vessels, radar for surveillance
of ports and sensitive marine areas, and fire alarms for trains
and underground railways. Our products fit well into these niche
markets and into the global market organisation.
Marine & Safety business area
Consilium’s deliveries to new construction of commercial vessels
remained good in 2011, as a result of long lead times and the
large order backlog. The level of orders received was lower than
net sales, and we expect a reduction in deliveries to the construction
of commercial vessels during 2012.
The Marine & Safety business area has a good balance
between different market areas. Sales to the new construction of
commercial vessels account for approx.30 percent of the business
area’s volume. Replacement investments, upgrades and the aftermarket
represent more than 50 percent of the business area’s
volume, while sales to other marine market segments and the land
market represent almost 20 percent.

The total number of vessels and the volume transported by sea
have both increased. This is important for our aftermarket. However,
there is overcapacity in several segments of the merchant
fleet, which is resulting in lower freight rates for shipping companies,
and a decline in new orders to shipyards. A reduction in
orders for new commercial vessels has increased the price competition
in this market. A stronger Swedish krona has gradually
affected Consilium’s margins. In response, we have reduced our
fixed costs considerably.
Orders for replacement investments and upgrading of equipment
on commercial vessels remain at a low level. Upgrades in
other segments show a large increase. Aftermarket sales increased
in 2011. The decline in sales to commercial vessels was offset by
an increased focus on new niche areas and non-cyclical market
areas (sales of products and systems for military vessels and
special radar systems for port surveillance and detection of oil
spills) and by sales of ships’ bridges and supplementary external
products. Deliveries of fire alarms to the land market (buildings,
trains and underground railways) increased in 2011. Order intake
for the Marine & Safety business area totalled SEK 746.6 (707.4)
million in 2011, which is 6 percent higher than in the previous
year. Net sales amounted to SEK 839.5 (757.5) million, which
is 11 percent higher than in the previous year. Operating profit
(EBIT) amounted to SEK 68.2 (54.0) million, which is 26 percent
higher than in the previous year.
Fire safety & Automation business area
Consilium has concentrated its offering of fire safety systems and
automation systems on the oil and gas industry. As a result of the
progressive increase in sales of fire safety systems to the on-shore
oil and gas industry, the business area has now been more appropriately
named Fire safety & Automation. Other divisions with
sales in other market areas have been discontinued. In 2011, the
scheduling of many of our large automation and fire safety projects
was changed. The order intake improved in the latter part
of 2011. The order backlog remains strong. The order intake for
Fire safety & Automation was SEK 126.6 (183.5) million. Net
BoARD oF DIReCtoRs’ RePoRt
sales amounted to SEK 138.5 (168.8) million. Operating profit
(EBIT) for continuing operations was SEK 5.4 (3.1) million.
global market organisation
Consilium’s product companies are responsible for development,
technical support, purchasing, production, technical manuals,
sales materials etc. These product companies represent a necessary
base for Consilium’s business. The market companies are an
important cornerstone of our global organisation, with responsibility
for local sales, service and customer support. Overall, we
have a strong customer offering.
Consilium continues its strategy of strengthening the local
presence around the world and the organisation within the
market companies. Resources for sales, project design, service and
support have been moved closer to the customers. At the same
time, the product companies are strengthening their support to
the market companies.
Consilium has built up a global market organisation with its
own companies in 19 countries. These local companies are now
responsible for the bulk of our sales volume. There are also local
representatives in more than 50 countries. More than 90 percent
of sales are to markets outside Sweden. More than 60 percent of
Consilium’s employees are outside Sweden.
Europe and North America continue to be important markets
for Consilium, with a large number of shipping companies and
specialised shipyards, and an important aftermarket. However,
Asia is becoming an increasingly important market for Consilium.
More than 60 percent of Consilium’s full-year sales for 2012 are
expected to go to customers in Asia. As a large proportion of the
Company’s future growth will be in Asia, Consilium will continue
to expand its operations in that part of the world.
Consilium is progressively consolidating its global aftermarket
organisation and the Group’s revenues from the aftermarket
have increased. Additional establishments will be implemented to
strengthen Consilium’s global market organisation.
27

BoARD oF DIReCtoRs’ RePoRt
The future
Consilium’s strategy over the coming years is to grow, based on
the product base and strong global market organisation that
is being built up. The Company will place greater focus on the
marine core business, and on this basis increase investments in
specific niche products and niche markets. Consilium will further
strengthen and develop the global market organisation. However,
in the short term, the sovereign debt problems in Europe and the
United States are creating considerable uncertainty about global
economic development and its impact on customers’ investments.
earnings and financial position
EBITDA amounted to SEK 91.3 (72.0) million in 2011. EBIT was
SEK 54.9 (37.6) million and EBT was SEK 38.4 (22.7) million.
Personnel and training
The number of employees in continuing operations amounted to
602 (560) during the year.
remuneration of the Board and key management
personnel
The 2011 annual general meeting adopted Board fees of SEK
450,000, distributed as follows: Chairman of the Board SEK
150,000, other Board members SEK 100,000 each.
The meeting also adopted guidelines relating to the compensation
of key management personnel, which are essentially in line
with market salaries and other terms of employment. Key management
personnel’s compensation consists of the basic salary,
including car allowance, and any bonuses earned. Pension is payable
in accordance with the current ITP plan. Bonuses are linked
to financial targets and may not exceed three monthly salaries.
The 2007 annual general meeting authorised the Board of
Consilium to establish an incentive scheme for key management
personnel by issuing up to 600,000 warrants entitling holders to
subscribe for a total of 600,000 shares in Consilium. More information
about the warrants can be found on page 23.
events after the reporting date
There have been no significant events.
Financial position
The equity/assets ratio was 36 (34) percent. Cash & cash equivalents
stood at SEK 36.3 (36.3) million at 31 December 2011.
Interest-bearing liabilities amounted to SEK 242.0 (242.2) million.
Investments
Net investments in non-current assets during the year amounted
to SEK 30.6 (40.0) million. In Marine & Safety, investments
related mainly to product development.
research and development
Consilium is a technical knowledge company which aspires to be
at the forefront of technological development in selected niches.
The development of products, systems and production techniques
is therefore a priority area. The Company capitalises development
expenses, with an amortisation period of 3-5 years.
Quality
All product companies are currently certified to ISO 9000.
28
environment
Consilium will work to ensure its daily operations, products and
manufacturing processes comply with national laws and international
environmental regulations. The Company will ensure its
products’ materials and manufacturing processes have minimal
environmental impacts. Residual and waste products will be dealt
with in an environmentally responsible way. The Company does
not engage in any operations which are subject to permit and
notification requirements under the Swedish Environmental Code.
Financial risk management
In the course of its operations, the Group is exposed to a large
number of different financial risks. The Group’s overall risk
management policy focuses on the unpredictability of the financial
markets and aims to minimise unfavourable effects on the
Group’s financial results. The Group uses derivative instruments
to cover certain risk exposure. Risk management is dealt with
by each product-owning subsidiary according to policies defined
by the Board. The Board formulates written policies for overall
risk management and also for specific areas such as currency risk,
interest rate risk, credit risk, use of derivative and non-derivative
financial instruments and investment of surplus cash.
risks and uncertainties
The Group’s material risks and uncertainties consist mainly of
business risks and financial risks. Business risks may be associated
with large customer exposure to individual sectors or companies.
Financial risks are mainly currency risks which arise due to the
fact that over 90 percent of sales are outside Sweden while a large
proportion of production is in Sweden. Management of financial
risks is described in note 13. The Group has a relatively good risk
spread across customers and markets, although the global financial
crisis and slowdown in economic growth represent a risk and
uncertainty. The economic situation has had a generally adverse
effect on the Group’s financial situation, resulting in an increased
risk of customer defaults. Otherwise, no significant risks arose
during the year.
Corporate governance report
The corporate governance report can be found on page 54.
Parent Company
Consilium AB, reg. no. 556480-3327, is the Parent Company of
the entities which make up Consilium, and encompasses Groupwide
functions. The Parent Company’s net sales amounted to SEK
2.4 (3.2) million and these relate to time charged to Group companies.
Operating expenses amounted to SEK -21.7 (-25.6) million.
Operating profit/loss was SEK -19.3 (-22.4) million. Profit/
loss after financial items amounted to SEK -22.9 (-25.7) million.
Proposed distribution of profits
Amounts in SEK thousands
The following amounts are at the disposal of the annual general
meeting:
Share premium reserve 130,479
Retained earnings -7,637
Profit/loss for the year -16,991
Carried forward 105,851

ConsolIDAteD InCoMe stAteMent
seK millions note 2011 2010
sales revenue 1 978.0 926.3
Cost of sales 20 -637.7 -607.5
Gross profit 340.3 318.8
distribution and marketing costs 2, 20 -151.1 -145.2
Administrative expenses 2, 3, 4, 20 -93.8 -95.6
Research & development expenses 10, 20 -42.9 -40.4
other operating income 2.4 –
operating profit/loss 54.9 37.6
finance income and exchange gains 5 6.9 2.9
finance costs and exchange losses 6 -23.4 -17.8
Profit/loss after financial items 38.4 22.7
income tax 7 -10.9 -6.1
Profit/loss for the period from continuing operations 27.5 16.6
profit for the period from discontinued operations -7.3 -2.6
Profit/loss for the period 20.2 14.0
other comprehensive income
Cash flow hedges -8.9 15.4
deferred tax on cash flow hedges 1.9 -4.1
exchange differences 3.9 -17.9
Total other comprehensive income -3.1 -6.6
total comprehensive income for the period 17.1 7.4
Profit/loss for the period attributable to:
owners of the parent 12.4 8.8
non-controlling interests 7.8 5.2
20.2 14.0
Earnings per share (EPS), owners of the parent.
eps before and after dilution, seK, continuing operations 1.50 0.91
eps before and after dilution, seK, discontinued operations -0.44 -0.16
1.06 0.75
Total comprehensive income attributable to:
owners of the parent, continuing operations 14.4 4.0
owners of the parent, discontinued operations -5.1 -1.8
9.3 2.2
non-controlling interests 7.8 5.2
17.1 7.4
proposed and approved dividend – –
ConsolIDAteD InCoMe stAteMent
29

ConsolIDAteD BAlAnCe sHeet
ConsolIDAteD BAlAnCe sHeet
Assets, liabilities and equity at 31 December, seK millions note 2011 2010
non-current assets
Property, plant & equipment
land and buildings, land improvements 9 16.5 16.7
plant and machinery 9 3.8 10.5
equipment, tools and fixtures & fittings 9 12.5 13.1
total property, plant & equipment 32.8 40.3
Intangible assets
Capitalised development expenditure 10 128.5 125.8
patents, licences and similar rights 10 0.6 1.2
Goodwill 10 36.8 37.2
total intangible assets 165.9 164.2
Financial assets
investments in associates 12 0.5 0.1
other securities held as non-current assets 0.1 0.1
non-current receivables (incl. restricted funds of seK 18.7 million) 31 31.3 27.6
deferred tax assets 8 36.3 46.8
total financial assets 68.2 74.6
total non-current assets 266.9 279.1
Current assets
inventories 14 166.9 154.7
Receivables
Trade receivables 15 229.4 221.7
prepayments and accrued income 17 21.2 32.8
other receivables (incl. restricted funds of seK 2.8 million) 46.6 41.8
investments in associates 0.0 8.4
Cash & cash equivalents 36.3 36.3
total current assets 500.4 495.7
total assets 767.3 774.8
equity and liabilities
equity
share capital 18 58.5 58.5
other paid-in capital 206.2 206.2
other reserves -25.8 -22.8
Retained earnings, incl. profit for the year 7.7 1.3
Capital and reserves attributable to owners of the parent 246.6 243.2
non-controlling interests 29.4 22.6
total equity 276.0 265.8
liabilities
Non-current liabilities
liabilities to credit institutions 21 109.0 127.4
Retirement benefit obligations 19 5.8 11.5
other provisions 19 16.2 26.0
total non-current liabilities 131.0 164.9
Current liabilities
Trade payables 151.4 158.0
Current tax liabilities 4.9 4.7
liabilities to credit institutions 21 133.0 114.8
other provisions 19 0.0 6.5
other liabilities 25.4 18.0
Accruals and deferred income 22 45.6 42.1
total current liabilities 360.3 344.1
total equity and liabilities 767.3 774.8
pledged assets 23 170.6 187.3
Contingent liabilities 24 25.8 57.1
30

ConsolIDAteD stAteMent oF CHAnGes In eQuItY
ConsolIDAteD stAteMent oF CHAnGes In eQuItY
share capital
other
paid-in
capital
other
reserves
Retained
earnings incl.
profit/loss for
the year
noncontrolling
interests
opening balance, 1 Jan 2010 58.5 206.2 -16.2 19.5 32.0 300.0
Translation differences – – -17.9 – – -17.9
Cash flow hedges – – 15.4 – – 15.4
deferred tax on cash flow hedges, currency derivatives – – -4.1 – – -4.1
total other comprehensive income -6.6 – – -6.6
profit/loss for the year – – – 8.8 5.2 14.0
total comprehensive income – – -6.6 8.8 5.2 7.4
dividend paid – – – -4.1 – -4.1
nCi share of equity – – – – -14.6 -14.6
Repurchase of warrants – – – -0.2 – -0.2
Acquisition of nCi shares – – – -22.7 – -22.7
Closing balance, 31 Dec 2010 58.5 206.2 -22.8 1.3 22.6 265.8
opening balance, 1 Jan 2011 58.5 206.2 -22.8 1.3 22.6 265.8
Translation differences – – 4.0 – – 4.0
Cash flow hedges – – -8.9 – – -8.9
deferred tax on cash flow hedges, currency derivatives – – 1.9 – – 1.9
total other comprehensive income – – -3.0 – – -3.0
profit/loss for the year – – – 12.4 7.8 20.2
total comprehensive income – – -3.0 12.4 7.8 17.2
dividend paid – – – -5.9 – -5.9
nCi share of equity – – – – -1.0 -1.0
Repurchase of warrants – – – -0.1 – -0.1
Closing balance, 31 Dec 2011 58.5 206.2 -25.8 7.7 29.4 276.0
total
equity
31

ConsolIDAteD CAsH FloW stAteMent
ConsolIDAteD CAsH FloW stAteMent
note 2011 2010
operating activities
operating profit before financial items 54.9 37.6
Amortisation 36.4 34.4
other non-cash items 28 -19.1 5.2
72.2 77.2
interest received 5 0.4 0.8
other financial items -6.8 –
interest paid 6 -10.1 -11.7
income taxes paid -1.7 -1.9
Cash flow from operating activities before changes in working capital 54.0 64.4
increase/decrease in inventories 14 -12.2 -9.6
increase/decrease in trade receivables 15 -7.7 -1.8
increase/decrease in other current receivables 17.2 -4.1
Changes in trade payables -6.6 23.4
increase/decrease in other current operating liabilities 4.6 -50.5
Cash flow from continuing operations 49.3 21.8
Cash flow from operating activities, discontinued operations 32 -7.3 -2.6
Cash flow from operating activities 42.0 19.2
Investing activities
investments in property, plant & equipment 9 -3.2 -10.0
investments in intangible assets 10 -27.4 -30.0
investments in associates 12 -0.4 –
Restricted funds -4.8 -15.6
other – -6.8
Cash flow from investing activities -35.8 -62.4
Financing activities
proceeds from borrowings – 53.0
Repayment of liabilities -0.2 –
investments in subsidiaries – -11.1
Repurchase of warrants -0.1 –
dividend to investors in joint ventures and nCi -5.9 -6.3
dividend paid – -4.1
Cash flow from financing activities -6.2 31.5
Cash flow for the year 0.0 -11.7
Cash & cash equivalents at beginning of year 36.3 48.0
Cash & cash equivalents at end of year 36.3 36.3
Cash flow from the sale of the associate precomp solutions is recognised in operating profit before financial items and amounted to
seK 2.4 million. no investments were made in discontinued operations in 2011.
32

InCoMe stAteMent, PARent
seK millions note 2011 2010
sales revenue 1 2.4 3.2
Gross profit 2.4 3.2
Administrative expenses 2, 3, 4 -21.7 -25.6
operating profit/loss -19.3 -22.4
other interest and similar income 5 0.3 –
interest and similar expense 6 -3.9 -3.3
Profit/loss before tax -22.9 -25.7
Tax on profit/loss for the year 6.0 2.7
Profit/loss for the year -16.9 -23.0
InCoMe stAteMent, PARent
33

BAlAnCe sHeet, PARent
BAlAnCe sHeet, PARent
Assets, liabilities and equity at 31 December, seK millions note 2011 2010
non-current assets
property, plant & equipment
equipment, tools and fixtures & fittings 9 0.1 0.2
total property, plant & equipment 0.1 0.2
Financial assets
investments in Group companies 11 115.9 115.9
deferred tax assets 8 15.3 9.3
total financial assets 131.2 125.2
total non-current assets 131.3 125.4
Current assets
Receivables
Receivables from Group companies 182.1 203.3
prepayments and accrued income 17 0.6 0.6
investments in associates – 8.4
other current receivables 0.6 0.0
Cash & cash equivalents 0.4 0.1
total current assets 183.7 212.4
total assets 315.0 337.8
equity and liabilities
equity
Restricted equity
share capital 18 58.5 58.5
statutory reserve 31.7 31.7
total 90.2 90.2
Unrestricted equity
share premium reserve 130.5 130.5
Retained earnings -7.8 14.8
profit/loss for the year -16.9 -23.0
total 105.8 122.3
total equity 196.0 212.5
liabilities
Non-current liabilities
liabilities to credit institutions 21 74.0 77.2
liabilities to Group companies 40.0 40.0
total non-current liabilities 114.0 117.2
Current liabilities
Trade payables 3.2 3.2
liabilities to credit institutions 21 0.0 3.2
other liabilities 0.6 0.8
Accruals and deferred income 22 1.2 0.9
total current liabilities 5.0 8.1
total equity and liabilities 315.0 337.8
pledged assets 23 40.0 8.4
Contingent liabilities 24 141.9 173.9
34

stAteMent oF CHAnGes In eQuItY, PARent
share capital statutory reserve
stAteMent oF CHAnGes In eQuItY, PARent
share premium
reserve
Retained
earnings total equity
opening balance, 1 Jan 2010 58.5 31.7 131.9 2.7 224.8
Group contributions received – – – 15.0 15.0
Repurchase of warrants – – – -0.2 -0.2
dividend paid – – -1.4 -2.7 -4.1
profit/loss for the year – – – -23.0 -23.0
Closing balance, 31 Dec 2010 58.5 31.7 130.5 -8.2 212.5
opening balance, 1 Jan 2011 58.5 31.7 130.5 -8.2 212.5
Group contributions received – – – 0.5 0.5
Repurchase of warrants – – – -0.1 -0.1
dividend paid – – – – –
profit/loss for the year – – – -16.9 -16.9
Closing balance, 31 Dec 2011 58.5 31.7 130.5 -24.7 196.0
35

CAsH FloW stAteMent, PARent
CAsH FloW stAteMent, PARent
note 2011 2010
operating activities
operating profit/loss before financial items 1 -19.3 -22.4
Amortisation 9, 10 0.1 –
-19.2 -22.4
interest received 0.3 –
interest paid -3.9 -3.3
Cash flow from operating activities before changes in working capital -22.8 -25.7
increase/decrease in other current receivables 28.9 -52.6
Changes in trade payables – -1.0
increase/decrease in other current operating liabilities 0.2 0.5
Cash flow from operating activities 6.3 -78.8
Investing activities
investments in subsidiaries – -1.6
Cash flow from investing activities – -1.6
Financing activities
proceeds from borrowings 21 – 63.8
Repayment of loans -6.4 –
dividend paid – -4.1
Repurchase of warrants -0.1 –
Group contributions received 0.5 20.0
Cash flow from financing activities -6.0 79.7
Cash flow for the year 0.3 -0.7
Cash & cash equivalents at beginning of year 0.1 0.8
Cash & cash equivalents at end of year 0.4 0.1
36

ACCountInG PolICIes
All amounts are in seK millions unless otherwise stated.
Accounting Policies
The most important accounting policies applied in preparing the consolidated financial
statements are described below. These policies have been applied consistently for all
presented years unless otherwise stated.
Basis of preparation
Consilium’s consolidated financial statements have been prepared in accordance with the
swedish Annual Accounts Act, RfR 1 supplementary Accounting Rules for Groups, and
international financial Reporting standards (ifRs) and ifRiC interpretations as adopted
by the eu. The financial statements have been prepared on the historical cost basis unless
otherwise indicated.
new and amended standards applied by the Group
none of the ifRs or ifRiC interpretations that are mandatory for financial periods
beginning on or after 1 January 2011 has had a significant impact on the Group.
new standards, amendments and interpretations of existing standards not yet
effective and which the Group will not apply early.
iAs 19 employee Benefits was amended in June 2011. The amendment requires the
Group to discontinue use of the corridor approach and instead recognise all actuarial
gains and losses in other comprehensive income as incurred. past service cost is recognised
immediately. interest expenses and expected return on plan assets will be replaced
by a net interest calculated using the discount rate, based on the net surplus or net
deficit of the defined benefit plan. The Group intends to apply the amended standard
for the financial year beginning 1 January 2013, and has not yet evaluated its effects. The
standard has not yet been adopted by the eu.
ifRs 9 financial instruments deals with the classification, measurement and reporting
of financial liabilities and assets. ifRs 9 was issued in november 2009 for financial assets
and in october 2010 for financial liabilities and replaces the parts of iAs 39 relating to
the classification and measurement of financial instruments. The categories in iAs 39
are replaced by two classifications – those measured at fair value and those measured
at amortised cost. The classification is determined at initial recognition using a business
model test and a contractual cash flow characteristics test. for financial liabilities, there
are no significant changes compared with iAs 39. The main change relates to liabilities
designated as measured at fair value through profit or loss. for these liabilities, the
amount of change in the fair value that is attributable to the credit risk of the liability is
required to be presented in other comprehensive income rather than in profit or loss,
unless this causes an accounting mismatch. The Group intends to apply the new standard
no later than the financial year beginning 1 January 2015, and has not yet evaluated its
effects. The standard has not yet been adopted by the eu.
ifRs 10 Consolidated financial statements, which is based on existing principles,
establishes control as the basis for consolidation. The standard provides additional
guidance in determining whether control exists when this is difficult to assess. The
Group will apply ifRs 10 for the financial year beginning 1 January 2013, and has not
yet evaluated its full impact on the financial statements. The standard has not yet been
adopted by the eu.
ifRs 11 Joint Arrangements is based on the core principle that a party to a joint
arrangement determines the type of joint arrangement in which it is involved by assessing
its rights and obligations. There are two types of joint ownership: joint operations and
joint ventures. proportionate consolidation of joint ventures is not allowed. The Group
uses the proportionate method at present. ifRs 11 is expected to have the following
effect on income statement items (based on 2011 figures):
sales -71.9
Gross profit/loss -23.1
operating profit/loss -6.8
profit/loss after financial items 0.0
The Group intends to apply ifRs 11 for the financial year beginning 1 January 2013, and
has not yet assessed its full impact on the financial statements. The standard has not yet
been adopted by the eu.
ifRs 12 disclosure of interests in other entities includes disclosure requirements for
subsidiaries, joint arrangements, associates and unconsolidated structured entities. The
Group will apply ifRs 12 for the financial year beginning 1 January 2013, and has not
yet evaluated its full impact on the financial statements. The standard has not yet been
adopted by the eu.
ifRs 13 fair Value measurement provides more consistent and less complex
measurement of fair value. The standard defines fair value, sets out in a single ifRs
a framework for measuring fair value and requires disclosures about fair value
measurements. ifRs 13 does not determine when an asset or liability is measured at
fair value. Rather, the measurement and disclosure requirements of ifRs 13 apply when
another ifRs requires or permits the item to be measured at fair value. The Group has
not yet evaluated the full impact of ifRs 13 on its financial reports. The Group intends to
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apply the new standard in the financial year beginning 1 January 2015. The standard has
not yet been adopted by the eu.
none of the other ifRs and ifRiC interpretations that are not yet effective is expected
to have a significant impact on the Group.
significant accounting estimates and assumptions
preparation of the financial statements in accordance with ifRs requires use of critical
accounting estimates. in addition, management is required to make certain judgements
when applying the Group’s accounting policies. Areas involving a significant amount of
judgement, which are complex or require use of critical accounting estimates are as follows.
Assumptions used in goodwill impairment testing
The Group tests goodwill for impairment in accordance with the principles described
under intangible assets. The assumptions and accounting estimates regarding projected
cash flows and the discount rate using a weighted average capital cost are described in
note 10. Cash flow projections are based on the best estimate of future income and
operating expenses. impairment testing has not identified any goodwill impairment.
The margin used in the testing is such that company management does not believe any
changes in individual variables would cause the value in use to fall below the carrying
amount. management also believes that even a certain amount of movement in the most
critical variables will still not result in impairment losses.
Assumptions used in impairment testing of capitalised development expenditure
The Group tests capitalised development expenditure for impairment in accordance
with the principles described under intangible assets. Cash flow projections are based
on the best estimate of future income and operating expenses. impairment testing
has not identified any impairment of capitalised development expenditure. The margin
used in the testing was such that company management does not believe any changes
in individual variables will cause the value in use to fall below the carrying amount.
management also believes that even a certain amount of movement in the most critical
variables will still not result in impairment losses.
Assumptions used in impairment testing of deferred tax assets
A deferred tax asset is recognised in the balance sheet for the carryforward of unused
tax losses to the extent that it is probable that future taxable profit will be available
against which the unused losses can be utilised. The Group’s forecasts are used as a basis
for defining future profit. The carrying amount of a deferred tax asset is reviewed at
each reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the deferred tax asset to be utilised. uncertainty
regarding the future economic situation or other difficulties in the assessment of future
profit may result in a lower taxable profit in subsidiaries which have unused tax losses.
The probability of the Group being able to utilise unused tax losses is based on factors
such as estimates and recent years’ results. All unused tax losses have been recognised as
deferred tax assets.
trade receivables
Receivables are recognised at net amounts due less any provision for doubtful debts,
which are assessed on an individual basis. The net value reflects the amounts expected
to be received based on the known circumstances at the reporting date. Changed
circumstances, such as an increased number of defaults or a change in an existing
customer’s financial position, may result in deviations in the net value measurement. The
current market situation has resulted in an increased focus on customer credit ratings
and monitoring of trade receivables.
Disputes
Consilium is involved in disputes in the course of its normal business operations. disputes
may concern product liability, alleged errors in deliveries of goods and other issues
connected with Consilium’s operations. disputes may prove costly, time-consuming and
disruptive to normal business operations. At present, there are not considered to be any
disputes of significance in progress.
Cash flow
The cash flow statement is prepared using the indirect method. Reported cash flows
only concern transactions which involve cash inflows and outflows. Cash & cash equivalents
comprise cash and bank deposits.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the
parent company and entities controlled by the parent company (subsidiaries). Control
is achieved where the parent company owns, directly or indirectly, more than half of
the voting power and has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities.
The consolidated financial statements have been prepared in accordance with the acquisition
method. The cost of an acquisition comprises the fair value of assets transferred,
37

ACCountInG PolICIes
equity instruments issued and liabilities incurred or assumed at the transfer date. The
acquiree’s equity is defined as the difference between the fair values of identifiable assets,
and assumed liabilities and contingent liabilities based on a market valuation conducted
at the date of acquisition. The subsidiary’s equity is eliminated in its entirety, which
means the Group’s equity only includes the portion of equity arising after the business
combination. Goodwill represents the excess of the cost of acquisition over the Group’s
interest in the net fair value of the identifiable assets of the subsidiary recognised at
the date of acquisition. Business combinations during the year are consolidated from
the date on which the Group gains control at amounts relating to the period after the
acquisition. subsidiaries which have been disposed of are deconsolidated from the date
on which control ceases. subsidiaries which have been portioned out to shareholders are
deconsolidated from the distribution date. internal transactions, balances and gains are
eliminated in their entirety, without taking into account the non-controlling interest.
Joint ventures
A joint venture is an arrangement whereby Consilium and one or more venturers have
joint control. The Group is only engaged in joint-ventures that constitute a separate legal
entity. The 50/50-owned joint venture companies have been consolidated using proportionate
consolidation due to the absence of control. proportionate consolidation means
the Group’s share of the assets, liabilities, income and expenses of the jointly-controlled
entity are combined with the corresponding items in the consolidated income statement
and balance sheet on a line-by-line basis.
Associates
An associate is an entity over which the parent Company has significant influence and is
not a subsidiary. Holdings in associates are normally between 20% and 50%. investments
in associates are recognised in the consolidated financial statements using the equity
method of accounting, and are initially measured at cost. The Group’s share of the profit
or loss of an associate after its acquisition is recognised in the income statement, and its
share of changes in reserves is recognised under Reserves. Accumulated post-acquisition
changes are reported as a change in the holding’s carrying amount. When the Group’s
share of the losses of an associate amounts to or exceeds its holding, the Group does
not recognise any subsequent losses. Any unrealised internal gains are eliminated to
the extent of the Group’s share of the gain. unrealised losses are also eliminated. The
share of profit or loss of associates is reported on separate lines in the consolidated
income statement and balance sheet. The Group’s share of profit or loss of associates is
recognised after tax.
Foreign currency translation
The individual financial statements of each Group entity are presented in the currency of
the primary economic environment in which the entity operates (its functional currency).
The consolidated financial statements are presented in swedish kronor, which is the
parent company’s functional and presentation currency. The subsidiaries’ balance sheets
are translated at the rates prevailing at the reporting date and the income statements are
translated at the average rate for the year. exchange differences are recognised directly in
consolidated equity.
significant
Closing rate Average rate
exchange rates
2011 2010 2011 2010
usd 6.87 6.77 6.46 7.20
euR 8.91 8.99 9.00 9.56
GBp 10.67 10.44 10.34 11.11
foreign currency assets and liabilities are measured at the closing rate. exchange gains
and losses on transaction payments and translation of monetary assets and liabilities are
reported under net sales or cost of sales. Transactions entered into to hedge certain foreign
currency risks are recognised in profit or loss until the hedging instrument expires.
The consolidated results include exchange differences, mainly related to forward
contracts, of seK 11.1 (8.9) million in operating profit and seK -0.1 (-2.6) million in net
financial income/expense.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are
treated as assets and liabilities in the entity and are translated at the closing rate.
intra-group extended equity transactions in foreign currency are not translated at the
closing rate, but at the transaction date rate.
Business areas
Consilium has two business areas – marine & safety and fire safety & Automation. The
business areas are monitored internally by the chief operating decision maker, namely the
president and Ceo.
units within each business area have a similar risk profile and development.
Consequently, the Group classifies the business areas as cash generating units when
conducting goodwill impairment testing.
38
Revenue recognition
Revenue comprises the fair value of the sale of goods and services, net of value-added
tax and rebates, after elimination of intra-group sales. Revenue is recognised as follows:
Sale of goods
The Group’s net sales comprise the fair value of the sale of goods. Consilium recognises
revenue when the Group has transferred to the customer the significant risks of ownership
under the terms of delivery and it is probable that economic benefits associated
with the sale of the goods will flow to the Group. sales are recognised net of VAT, discounts,
returns and exchange differences on foreign currency sales, and after elimination
of internal Group sales.
Rendering of services and construction contracts
Revenue and costs relating to the provision of services and construction contracts are
recognised by reference to the stage of completion at the reporting date, often referred
to as the percentage of completion method. The stage of completion is measured based
on the proportion of contract costs incurred for work performed to date relative to the
estimated total contract costs. Where the outcome of a contract to provide services or
a construction contract cannot be estimated reliably, contract revenue is recognised to
the extent of the contract costs incurred that are likely to be recoverable. An expected
loss is recognised as an expense immediately.
Interest income
interest income is recognised over the relevant period using the effective interest
method.
Dividend income
dividend income is recognised when the dividend has been adopted and the
shareholders’ rights to receive payment have been established.
Government grants
Government grants are recognised as revenue when there is reasonable assurance that
the grant will be received and the Group will comply with the conditions attaching to
it. Government grants related to expense items are deferred and recognised over the
periods necessary to match them with the related costs which they are intended to
compensate.
Borrowing costs
Borrowing costs are recognised in profit or loss in the period in which they are incurred.
Consilium does not have any loans that are directly attributable to the Company’s
development expenditure.
taxes
deferred tax is recognised on all temporary differences between the carrying amounts
of assets and liabilities and their corresponding tax bases, and is accounted for using the
balance-sheet liability method. unused tax losses are recognised as deferred tax assets
to the extent that it is probable that taxable profits will be available against which they
can be utilised. unused tax losses include accumulated losses at the date of acquisition
and subsequently arising losses. deferred tax assets and liabilities are measured using tax
rates that have been enacted by the reporting date, and are reported as financial assets
or non-current liabilities in the balance sheet. income tax for the year consists of current
tax and deferred tax. if the outcome differs from the amounts initially recognised, these
differences will affect the provisions for current and deferred tax and profit for the year.
deferred tax liabilities are recognised for temporary differences arising on investments in
subsidiaries and associates, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in
the foreseeable future.
Intangible assets
The Group’s intangible assets comprise capitalised development expenses, goodwill and
patents, licences and similar rights.
Goodwill
Goodwill represents the difference between the cost of the shares in an acquired
subsidiary and the acquisition-date fair value of the subsidiary’s net assets. Goodwill
arising on the acquisition of an associate is included in the carrying amount of the
investment and is assessed for impairment as part of the total investment. Goodwill
reported separately is tested for impairment annually. Goodwill impairment is not
reversed. A gain or loss on the disposal of an entity includes the residual carrying amount
of the goodwill that relates to the entity. Goodwill is allocated at the date of acquisition to
the cash generating units which are expected to benefit from the business combination
that gave rise to the goodwill item. for a description of the methods and assumptions
used for impairment testing and recognition, see note 10.

Product development and research
expenditure relating to development projects for the construction and testing of new or
improved products is capitalised under intangible assets to the extent that such expenditure
is expected to generate future economic benefits. other development expenditure
is recognised as an expense in the period in which it is incurred. development costs
previously recognised as an expense are not capitalised in subsequent periods. Capitalised
development costs are amortised using the straight-line method over a period of
3-5 years (the period in which future economic benefits are expected to flow to the
company) from the date on which commercial production begins. in accordance with the
ifRs transitional provisions in 2005, Consilium has reclassified the previously recognised
goodwill arising from the acquisition of the net assets of nittan and servoteknikk in 2003
and 2004. As a result of the reclassification, Consilium’s consolidated financial statements
now show product development acquisitions. At the acquisition date, the estimated
useful lives and amortisation schedules were defined as 20 and 10 years, respectively. As
these amortisation schedules are the same as those for previously recognised goodwill,
there is no difference in amortisation charges. Amortisation is reported in the income
statement under Research and development costs.
expenditure on research activities is recognised as incurred. Research is not conducted
as a separate or large scale activity in the Group, but is an ongoing process which forms
an integral part of day-to-day operations. This type of expenditure can be difficult to
distinguish as research, and does not in any case represent significant amounts.
Patents, trademarks and licences
patents, trademarks and licences are recognised at cost. patents, trademarks and
licences have finite useful lives, and are recognised at cost less accumulated amortisation.
Amortisation is applied to patents, trademarks and licences using the straight-line method
over their estimated useful lives (5-10 years).
Property, plant & equipment
property, plant & equipment, including land and industrial buildings, is stated at cost less
subsequent depreciation. Cost includes costs directly related to the acquisition of the
asset. expenditure on improvement of an asset’s performance from its original level increases
its carrying amount. Repair and maintenance costs are recognised as an expense.
depreciation is charged to operating profit in the income statement and is applied using
the straight-line method over the assets’ useful lives, based on the difference between
their cost and residual value. Consilium applies the following useful lives:
industrial buildings used in the course of business 25 years
plant and machinery 5-7 years
equipment, tools and fixtures & fittings 5 years
The residual values and useful lives of assets are reviewed annually and adjusted if
necessary. if an asset’s carrying amount exceeds its estimated recoverable amount, it is
written down to the recoverable amount immediately. depreciation is not applied to land.
Capital gains and losses are determined by comparing the selling price and the carrying
amount. Capital gains and losses are recognised in profit or loss.
leases
leases are classified as finance leases when the terms of the lease transfer substantially all
the risks and rewards of ownership to the Group.
Assets held under finance leases are recognised at their fair value at the inception
of the lease, or, if lower, at the present value of the minimum lease payments. finance
leases are reported under non-current assets and financial liabilities in the balance sheet.
future lease payments are apportioned between reduction of the lease obligation and
finance charges so as to achieve a constant rate of interest on the remaining balance of
the liability for each period. depreciation of leased assets is on a basis consistent with
the normal depreciation policy for similar assets. Costs of leases are reported under
depreciation and interest in the income statement. The Group did hold any assets under
finance leases in 2011 or in 2010.
A lease is classified as an operating lease if it does not transfer substantially all the risks
and rewards of ownership. lease payments are recognised as an expense on a straightline
basis over the term of the lease. operating leases are reported under operating
expenses in the income statement. leased cars, computers and premises are normally
classified as operating leases.
Impairment
depreciation/amortisation is not applied to assets with an indefinite useful life, such
as goodwill; instead, they are tested annually for impairment. The Group reviews the
carrying amounts of assets whenever there is an indication that they may be impaired. if
the recoverable amount of an asset is estimated to be less than its carrying amount, the
carrying amount is reduced to the asset’s recoverable amount. The recoverable amount
is the higher of the asset’s fair value less costs to sell and its value in use. impairment
losses are recognised for each cash generating unit. Assets, other than financial assets
and goodwill, for which impairment losses have previously been recognised are tested at
ACCountInG PolICIes
each reporting date to determine whether there is any need for reversal of the previous
impairment.
Inventories
inventories consist of finished and semi-finished products and raw materials. inventories
are measured at the lower of cost and net realisable value at the reporting date. Cost
is calculated using the first-in, first-out method. finished and semi-finished products are
measured at the manufacturing cost, including raw materials, direct labour, other direct
overheads and production-related costs based on normal production. net realisable
value is the estimated selling price in the ordinary course of business, less the estimated
variable costs necessary to make the sale. Collective measurement is used for groups of
inventories with similar characteristics. inventory measurement does not include interest
costs. A deduction is made for internal gains arising from intra-group deliveries. An
obsolescence provision has been recognised.
Financial instruments
financial instruments recognised in the balance sheet include cash & cash equivalents,
trade receivables, current and non-current receivables, trade payables, loans and other
liabilities.
The Group classifies financial assets into the following categories: cash & cash equivalents,
loans and receivables and available-for-sale financial assets. financial assets are classified
on the basis of the purpose for which they were acquired. management makes the
classification decision on initial recognition and reviews the decision at each reporting date.
Loans and receivables
loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. They are reported under current assets
unless the settlement date is more than 12 months after the reporting date, in which
case they are classified as non-current assets. loans and receivables are reported under
trade receivables and other current and non-current receivables in the balance sheet.
loan receivables are recognised at amortised cost using the effective interest method.
Trade receivables are initially measured at fair value and thereafter at amortised cost
using the effective interest method less any provision for impairment losses. A provision
for impairment losses is recognised when there is objective evidence that the carrying
amount of receivables will not be recovered, and an impairment loss is recognised when
the loss is actually identified.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that have been
designated as available for sale or have not been classified in any of the other categories.
They are reported under non-current assets if management does not intend to dispose
of them within 12 months of the reporting date. The assets are measured at fair
value. Any changes in fair value are recognised directly in equity. An impairment loss
is recognised if there is objective evidence of impairment. on disposal of the financial
asset, the cumulative gain or loss previously recognised in equity is removed from equity
and recognised in profit or loss. investments in available-for-sale equity instruments that
do not have a quoted market price in an active market and whose fair value cannot be
reliably measured are measured at cost. purchases and sales of financial assets are recognised
at the trade date (the commitment date). financial assets are derecognised when
the right to receive cash flows from the instrument has expired or been transferred, and
the Group has transferred substantially all the risks and rewards of ownership.
Cash & cash equivalents
Cash & cash equivalents comprise cash on hand, bank deposits and short-term
investments with an original maturity of three months or less. Cash & cash equivalents
are initially recognised at fair value and thereafter at amortised cost.
Hedge accounting
Consilium uses derivative financial instruments to cover risks associated with foreign
currency exposure. Consilium designates certain derivatives as hedges of highly probable
forecast transactions for foreign currency exposure (cash flow exposure) within the
framework of the financial policy defined by the Board. The Group applies hedge
accounting for contracts which qualify for hedge accounting under iAs 39 financial
instruments: Recognition and measurement. At the inception of the hedge and on an
ongoing basis, the Group documents whether the hedging instrument used in a hedging
relationship is highly effective. unrealised gains and losses arising on the market valuation
of hedging instruments and which meet the criteria for hedge accounting are recognised
in equity. see also note 13.
The fair value of a derivative which is a hedging instrument is reported under noncurrent
assets or liabilities when the hedged item has a term to maturity of more than 12
months, and is reported under current assets or liabilities when the hedged item has a
term to maturity of less than 12 months.
The effective portion of changes in the fair value of derivatives that are designated
and qualify as cash flow hedges is deferred in equity. The gain or loss relating to the
39

ACCountInG PolICIes
ineffective portion is recognised immediately in profit or loss as finance income or
expense. Amounts deferred in equity are recycled in profit or loss in the periods in
which the hedged item affects profit or loss (e.g. when the forecast transaction occurs).
Hedge accounting is discontinued when the hedging instrument expires or no longer
qualifies for hedge accounting. Any cumulative gain or loss deferred in equity at that time
remains in equity and is released to the income statement when the forecast transaction
is ultimately recognised in profit or loss. When a forecast transaction is no longer
expected to occur, the cumulative gain or loss that was deferred in equity is recognised
immediately in profit or loss as finance income or expense.
Share capital
ordinary shares are classified as equity. Transaction costs directly attributable to the issue
of new shares or options are recognised in equity, net of tax, as a deduction from the
issue proceeds.
Trade payables
Trade payables are initially carried at fair value and thereafter at amortised cost using the
effective interest method.
Borrowing
Borrowing costs are initially recognised at fair value, net of transaction costs. Borrowing
costs are subsequently measured at amortised cost, and any difference between the
amount received and the repayment amount is recognised in profit or loss over the term
of the loan using the effective interest method.
Provisions
provisions are recognised as current and non-current liabilities in the balance sheet when
the Group has a present obligation (legal or constructive) as a result of a past event and
it is probable that an outflow of resources will be required to settle the obligation, and
a reliable estimate of the amount can be made. Restructuring provisions are recognised
when a detailed formal plan is adopted and a valid expectation has been raised in those
affected that the plan will be implemented. provisions for future warranty claims concern
the next two years and are based on historical warranty claim information and any trends
indicating that future claims may deviate from the historical pattern. no provisions are
recognised for future operating losses.
Repurchase of treasury shares
in the case of repurchase of treasury shares, the purchase consideration, including any
directly attributable transaction costs (net of tax), i.e. the capitalised gain, is reduced until
the shares are cancelled or sold. in the event of subsequent disposal of these shares, the
proceeds (net of directly attributable transaction costs and tax effects) are recognised in
retained earnings.
equity instruments
Incentive schemes
The 2007 annual general meeting voted to issue 600,000 warrants, which were then
offered to key management personnel in the Group. each warrant entitles the holder
to subscribe for one new share in the period 1 January 2012 to 30 June 2012. The
subscription price was seK 2.47 per warrant, defined according to the Black & scholes
option valuation model, and the exercise price is seK 68.20 per share. As the subscription
price is the same as the fair market value, the warrants have not been recognised as
personnel expenses. in the case of termination of employment, the warrant holder must
offer his or her warrants for redemption. The exercise price must be restated to take
into account new share issues, bonus issues, equity issues and dividends. Restatement of
the exercise price at 31 december 2011 is not relevant as a result of new share issues,
equity issues and dividends after the defined exercise price of seK 68.20 per share.
employee benefits
employee benefits are accounted for in accordance with ifRs 19 employee Benefits.
Group companies have different types of pension plans. The plans are normally funded
by contributions to insurance policies. The Group provides defined benefit and defined
contribution pension plans. A defined benefit pension plan is a plan which defines the
post-retirement benefit an employee receives, normally based on one or more factors
such as age, length of service or salary. under defined contribution plans, the Group pays
fixed contributions into a separate entity (a fund).
The pension plans are funded by payments from Group companies and employees.
The defined benefit pension plans in sweden relate to iTp plans, which are insured with
Alecta. These are reported as defined contribution plans as Alecta is unable to provide
sufficient information to allow them to be reported as a defined benefit plans. see also
note 19. The Group’s payments to retirement benefit plans are recognised as an expense
when employees have rendered service entitling them to the contributions.
defined benefit liabilities recognised in the balance sheet represent the present value
of the defined benefit obligation at the reporting date less the fair value of plan assets.
The defined benefit pension obligation is calculated annually by an independent actuary
40
in accordance with the projected unit credit method. The present value of the defined
benefit obligation is determined by discounting expected future cash flows by reference
to market yields on high quality corporate bonds of a currency and term consistent with
the currency and term of the retirement benefit obligation. unrecognised actuarial gains
and losses exceeding the greater of 10 percent of the present value of the obligation
or the fair value of plan assets (the corridor) are distributed over the estimated average
length of service.
for defined contribution pension plans, the Group pays contributions into publicly
or privately managed pension insurance plans on a mandatory, contractual or voluntary
basis. The Group has no additional payment obligations once the contributions have been
paid. The contributions are recognised as personnel expenses when due for payment.
Dividends
dividends are recognised as an expense when they have been adopted by the annual
general meeting.
Accounting policies – Parent Company
The parent Company’s annual financial statements have been prepared in accordance
with the swedish Annual Accounts Act and the swedish financial Reporting Board’s
recommendation RfR 2 Accounting for legal entities. RfR 2 requires the parent Company
to prepare separate financial statements in accordance with the international financial
Reporting standards (ifRs) and statements adopted by the eu to the extent allowed
within the framework of the swedish Annual Accounts Act, and taking into account
the relationship between tax expense and accounting profit. The recommendation also
specifies exceptions from and additions to ifRs. differences between the accounting
policies of the Group and the parent Company are described below.
Financial instruments
non-current financial assets are measured at cost less impairment, while current financial
assets are measured at the lower of cost and net realisable value.
Leased assets
in the parent Company, all leases are reported as operating leases.
Group contributions and shareholder contributions for legal entities
Group contributions received are recognised in accordance with RfR 2 as financial
income in the income statement.
Shares in subsidiaries
shares in subsidiaries are recognised at cost less impairment losses. if there is an
indication that shares and interests in a subsidiary or associate may be impaired, the
recoverable amount is calculated. if this is lower than the carrying amount, an impairment
loss is recognised. impairment losses are recognised under financial items in the income
statement.
Investments in associates
in the parent Company’s annual financial statements, investments in associates are
recognised at cost less impairment losses. The parent Company recognises income
only to the extent that it receives distributions from the profits of the associate arising
subsequent to the date of acquisition.

notes
note 1 BusIness AReAs
Business area accounts for 2011 and 2010 are shown below
notes
seK millions Marine & safety
Fire safety &
Automation other 1) Group 2)
2011 financial year
Revenues
net sales 839.5 138.5 0.0 978.0
operating profit/loss 68.2 5.4 -18.7 54.9
Operating profit/loss includes
depreciation 30.8 5.6 0.0 36.4
Assets 445.5 187.6 134.2 767.3
liabilities 298.3 113.7 79.3 491.3
(of which interest-bearing) (145.9) (22.1) (74.0) (242.0)
Cash (included in assets) 35.3 0.3 0.7 36.3
net debt 110.6 21.8 73.3 205.7
investments 29.2 1.4 0.0 30.6
depreciation and impairment 30.8 5.6 0.0 36.4
Marine & safety
Fire safety &
Automation other 1) Group 2)
2010 financial year
Revenues
net sales 757.5 168.8 – 926.3
operating profit/loss 54.0 3.1 -19.5 37.6
Operating profit/loss includes
depreciation 28.6 5.7 0.1 34.4
Assets 583.0 176.4 15.4 774.8
liabilities 345.4 81.0 82.6 509.0
(of which interest-bearing) (148.1) (16.9) (77.2) (242.2)
Cash (included in assets) 35.7 0.5 0.1 36.3
net debt 112.4 16.4 77.1 205.9
investments 35.3 4.5 0.2 40.0
depreciation and impairment 28.6 5.7 0.1 34.4
1) Relates to Group-wide functions.
2) Reported operating profit is in line with the consolidated income statement.
The Group is organised in two business areas. marine & safety develops and markets fire alarm, gas detection and emission systems, radar products and systems, marine voyage
data recorders, speed logs, and electronic navigational and information systems. fire safety & Automation supplies integrated automation solutions, including installation of electrical
systems, instruments and control systems, and fire protection to the oil and gas industry. other operations encompass Group-wide functions. Transfers or transactions between
segments are conducted under normal market terms and conditions. This also applies to external parties. unallocated costs comprise common costs including structural costs which
do not concern Consilium’s core business. operating segment assets attributable to the business areas consist mainly of intangible assets, property, plant & equipment, inventories,
receivables and operating cash. operating segment liabilities attributable to the business areas consist of operating liabilities, but not items such as tax and certain company borrowing.
investments consist of purchasing of property, plant & equipment and intangible assets.
net sales Assets Investments
Geographical areas 2011 2010 2011 2010 2011 2010
sweden 72.8 47.2 366.3 386.8 22.9 31.5
Rest of europe 278.7 273.6 138.0 134.0 4.3 0.8
Asia 545.2 545.6 247.3 236.8 3.4 7.7
north America 59.4 47.2 15.7 17.2 – –
other markets 21.9 12.7 – – – –
Total 978.0 926.3 767.3 774.8 30.6 40.0
41

notes
note 1 BusIness AReAs, Cont’D
Consilium’s countries/regions (apart from sweden) with the highest net sales:
2011 2010
italy 68.1 57.9
netherlands 51.5 50.8
middle east 235.3 209.5
China 170.6 118.6
Korea 103.4 121.5
Germany 54.2 44.0
usA 53.2 43.6
net sales includes revenues from:
operating profit/loss
2011 2010
Goods 73.6% 88.8%
services 12.2% 8.7%
Construction contracts 14.2% 2.5%
100.0% 100.0%
note 2 sAlARIes, otHeR eMPloYee BeneFIts AnD soCIAl seCuRItY ContRIButIons
42
social security
contributions
(of which pension costs)
2011 2010
social security
contributions
(of which pension costs)
salaries and other
salaries and other
remuneration
remuneration
parent 7.5 4.3 (1.7) 7.5 4.3 (1.9)
subsidiaries 211.3 57.4 (22.1) 204.0 56.9 (24.6)
Group 218.8 61.7 (23.8) 211.5 61.2 (26.5)
salaries and employee benefits (Board, Ceo and other employees) by country
2011 2010
Board and Ceo
Board and Ceo
(of which bonus) other employees
(of which bonus) other employees
parent 2.6 4.9 2.5 5.0
subsidiaries, sweden
Foreign subsidiaries:
2.7 89.2 2.9 77.9
finland 0.5 1.4 0.4 1.1
united Arab emirates 3.6 37.1 3.6 25.7
Greece 0.5 0.8 0.5 0.9
india 0.3 0.8 0.2 0.6
italy 0.9 19.0 0.9 21.4
Japan 0.5 1.9 0.3 1.5
netherlands 2.3 5.9 1.6 7.1
China 0.5 5.0 0.4 1.5
norway 1.1 4.2 1.1 5.0
Qatar 0.0 1.4 0.8 10.9
singapore 1.0 4.0 0.3 4.1
spain 0.6 2.5 1.3 5.4
south Korea 1.0 4.7 1.0 5.5
Germany 1.4 8.8 1.7 11.1
usA 1.2 6.5 1.2 6.1
Total. subsidiaries 18.1 193.2 18.2 185.8
Total, Group 20,7 198,1 20,7 190,8

note 2 sAlARIes, otHeR eMPloYee BeneFIts AnD soCIAl seCuRItY ContRIButIons, Cont’D
notes
Group Parent
Personnel 2011 2010 2011 2010
Swedish operations:
parent 7 8 7 8
subsidiaries, sweden 190 206 – –
Total, sweden 197 214 7 8
Foreign operations, subsidiaries/joint ventures:
finland 5 4 – –
united Arab emirates 144 100 – –
Greece 6 5 – –
india 15 10 – –
italy 60 51 – –
Japan 6 5 – –
netherlands 14 15 – –
China 61 49 – –
norway 6 9 – –
Qatar 10 18 – –
singapore 15 15 – –
spain 9 11 – –
uK 3 3 – –
south Korea 21 22 – –
Germany 18 19 – –
usA 12 10 – –
Total, foreign 405 346 – –
Total, Group 602 560 7 8
23 (24) percent of the Group’s employees in 2011 were female.
The parent Company has 7 (8) employees, 1 (1) of whom is female.
Employees in Sweden are distributed as follows:
Group Parent
2011 2010 2011 2010
Gothenburg 160 163 2 2
stockholm 37 51 5 6
Total 197 214 7 8
share-based compensation
share options were granted to key management personnel.
Changes in the number of share options outstanding and their weighted average exercise price are as follows:
2011 2010
Average exercise price
Average exercise price
seK per option options (thousands)
seK per option options (thousands)
At 1 January 2.47 540,000 2.47 600,000
Allotted – – – –
forfeited 2.47 -35,000 2.47 -60,000
exercised – – – –
expired – – – –
At 31 december 2.47 505,000 2.47 540,000
of the 505,000 (540,000) outstanding warrants, 505,000 (540,000) are exercisable at 30 June 2012. The options forfeited during the year have been recognised under retained earnings.
The weighted average fair value of options granted during the period, determined using the Black-scholes valuation model, was seK 2.47 (2.47) per option. The exercise price is
seK 68.20 before adjustments for share issues. each holder is entitled to subscribe for one new B share in the period 1 January 2012 to 30 June 2012.
43

notes
note 3 ReMuneRAtIon oF AuDItoRs
Administrative expenses include the following fees paid to auditors.
Group Parent
2011 2010 2011 2010
PWC
Audit 1.7 1.1 1.1 0.6
other auditing assistance – – – –
Tax advisory services – – – –
other services – – – –
Total 1.7 1.1 1.1 0.6
Other auditing firms
Audit 0.8 0.8 – –
other auditing assistance – – – –
other services 0.2 0.2 – –
Total 1.0 1.0 – –
Total 2.7 2.1 1.1 0.6
pWC has not provided any tax advisory or other services.
other audting firms have not provided any tax advisory services.
note 4 oPeRAtInG leAses
The nominal value of future minimum lease payments under non-cancellable operating
leases due for payment in the following periods:
Group Parent
2011 2010 2011 2010
Within one year 20.7 21.2 1.2 0.4
Between one and five years 13.8 9.2 1.2 0.6
After five years – 2.9 – –
operating lease costs and revenues for the year:
Group Parent
2011 2010 2011 2010
lease costs 21.1 24.8 0.9 0.3
of which
minimum lease payments 6.8 6.3 0.3 0.3
contingent rents 14.3 18.5 0.6 –
Apart from normal premises rental and car leasing contracts. the Group has no other
operating leases of significance.
note 5 FInAnCe InCoMe
Group Parent
2011 2010 2011 2010
interest 0.4 0.8 – –
exchange differences 6.5 2.1 0.3 –
Total 6.9 2.9 0.3 –
44
note 6 FInAnCe Costs
Group Parent
2011 2010 2011 2010
interest expenses 10.1 11.7 2.7 1.9
exchange differences 7.8 4.7 0.2 –
other 1) 5.5 1.4 1.0 1.4
Total 23.4 17.8 3.9 3.3
1) Applies primarily to finance charges.
note 7 tAX on PRoFIt/loss FoR tHe YeAR
Parent
2011 2010
Current tax for the year -10.4 -5.1
provision for structural costs 0.3 –
Current tax attributable to prior years -0.8 -1.0
Total -10.9 -6.1
difference between tax expense and 26.3 percent tax
profit/loss before tax 31.1 20.1
26.3 percent tax -8.2 -5.3
Tax on profit/loss for the year -10.9 -6.1
difference -2.7 -0.8
specification of difference
effect of
foreign tax, prior years -0.4 1.1
foreign tax rates 0.6 2.3
early termination of forward contracts – -4.2
non-taxable income 2.0 1.0
non-deductible expenses -4.9 -1.0
Total -2.7 0.8
note 8 DeFeRReD tAX
deferred tax assets relate to unused tax losses and deferred tax on cash flow hedges.
There are no other taxable temporary differences.
Group Parent
2011 2010 2011 2010
Tax effect of:
Cash flow hedges – -2.5 – –
unused tax losses in swedish operations 26.0 20.4 15.3 9.3
unused tax losses in foreign operations 16.6 19.4 – –
Through acquisition of subsidiaries – 9.5 – –
Total 42.6 46.8 15.3 9.3
no deferred tax assets have expired.
Reported in the consolidated income statement:
deferred tax attributable to early termination of forward contracts seK 0.0 (-4.2)
million, cash flow hedges seK 2.5 (-4.7) million, loss carryforwards seK 2.8 (7.4) million
and effect of acquisition of subsidiaries seK -9.5 (9.5) million.
Reported in the parent Company’s income statement:
deferred tax attributable to tax loss carryforwards seK 6.0 (3.3) million.

note 9 PRoPeRtY, PlAnt & eQuIPMent
land and
buildings Machinery equipment total
At 1 January 2010
Cost of acquisition 19.8 27.7 67.4 114.9
Accumulated depreciation -5.2 -10.8 -52.7 -68.7
Carrying amount 14.6 16.9 14.7 46.2
1 January – 31 December 2010
opening balance 14.6 16.9 14.7 46.2
exchange differences -0.9 -1.4 -1.2 -3.5
investments 4.8 2.2 3.0 10.0
disposals – -3.3 -0.2 -3.5
depreciation -1.8 -3.9 -3.2 -8.9
Closing balance 16.7 10.5 13.1 40.3
At 31 December 2010
Cost of acquisition 23.7 25.2 69.0 117.9
Accumulated depreciation -7.0 -14.7 -55.9 -77.6
Carrying amount 16.7 10.5 13.1 40.3
At 1 January 2011
Cost of acquisition 23.7 25.2 69.0 117.9
Accumulated depreciation -7.0 -14.7 -55.9 -77.6
Carrying amount 16.7 10.5 13.1 40.3
1 January – 31 December 2011
opening balance 16.7 10.5 13.1 40.3
exchange differences -0.6 0.1 0.2 -0.3
investments 1.0 0.6 4.2 5.8
disposals 0.0 -1.8 -0.5 -2.3
Reclassification – -3.2 3.2 0.0
depreciation -0.6 -2.4 -7.7 -10.7
Closing balance 16.5 3.8 12.5 32.8
At 31 December 2011
Cost of acquisition 24.1 20.9 76.1 121.1
Accumulated depreciation -7.6 -17.1 -63.6 -88.3
Carrying amount 16.5 3.8 12.5 32.8
Parent
equipment 2011 2010
opening cost 1.2 1.2
investments 0.0 0.0
disposals 0.0 0.0
Closing cost 1.2 1.2
opening depreciation -1.0 -1.0
depreciation for the year -0.1 0.0
Closing depreciation -1.0 -1.0
Carrying amount 0.1 0.2
depreciation of buildings is divided equally between Cost of sales, distribution costs,
Administrative expenses and Research and development expenses. depreciation of
machinery is charged to Cost of sales. depreciation of equipment is divided equally
between Cost of sales, distribution costs, Administrative expenses and Research and
development expenses.
note 10 IntAnGIBle Assets, GRouP
Goodwill
Capitalised
development
notes
Patents,
trademarks
and licences total
At 1 January 2010
Cost of acquisition 33.1 226.6 15.1 288.2
Accumulated amortisation – -102.0 -13.1 -128.5
Carrying amount 33.1 124.6 2.0 159.7
1 January – 31 December 2010
opening balance 33.1 124.6 2.0 159.7
exchange differences – – – –
Acquisitions 4.1 25.9 – 30.0
disposals – – – –
Amortisation – -24.7 -0.8 -25.5
Closing balance 37.2 125.8 1.2 164.2
At 31 December 2010
Cost of acquisition 37.2 252.5 15.1 304.8
Accumulated amortisation – -126.7 -13.9 -140.6
Carrying amount 37.2 125.8 1.2 164.2
At 1 January 2011
Cost of acquisition 37.2 252.5 15.1 304.8
Accumulated amortisation – -126.7 -13.9 -140.6
Carrying amount 37.2 125.8 1.2 164.2
1 January –
31 December 2011
opening balance 37.2 125.8 1.2 164.2
exchange differences -0.4 – – -0.4
Acquisitions – 28.4 – 28.4
disposals – -0.1 -0.5 -0.6
Amortisation – -25.6 -0.1 -25.7
Closing balance 36.8 128.5 0.6 165.9
At 31 December 2011
Cost of acquisition 36.8 280.8 14.6 332.2
Accumulated amortisation – -152.3 -14.0 -166.3
Carrying amount 36.8 128.5 0.6 165.9
Goodwill impairment testing
distribution of goodwill in the Group’s cash-generating units:
2011 2010
marine & safety 29.6 30.0
fire safety & Automation 7.2 7.2
units in Consilium’s two business areas have a similar risk profile and development.
Consequently, the Group classifies the business areas as cash generating units for
goodwill allocation and impairment testing.
Goodwill allocation is based on the business areas’ estimated revenues. These values
are obtained from projected cash flows, with the forecast for first year based on the
budget defined by the Board. The assumed rate of growth for subsequent years is in
line with Gdp forecasts, in other words at a level which reflects long-term inflation.
Budgeted operating margins are defined on the basis of previous results and
expectations of future market development.
it is the Company’s opinion that the effects of reasonable changes in annual growth of
3 (3) percent, the operating margin, the pre-tax discount rate of 10 (10) percent
and other assumptions would not be sufficient to cause the recoverable amount to fall
below the carrying amount. Annual impairment testing did not identify any impairment
losses.
45

notes
note 11 InvestMents In suBsIDIARIes
Parent
2011 2010
opening cost 115.9 124.4
shareholder contributions – –
Acquisition of shares – 1.6
internal disposal/acquisition of shares – -10.1
Carrying amount 115.9 115.9
share share number Carrying
of equity of votes of shares amount
Consilium marine Group AB 100% 100% 500,000 74.1
Consilium marine & safety AB 100% 100% 220,000 40.0
storm & Co. skeppsradio AB 100% 100% 2,000 1.7
Consilium production AB 100% 100% 1,000 0.1
115.9
Company/reg. no.
46
Reg’d office
number
of shares/
interests
share of
capital/
votes
Swedish subsidiaries
Consilium marine Group AB,
556063-8503 nacka 500,000 100
Consilium fire & Gas AB,
556611-5811 Gothenburg 25,000 100
Consilium marine & safety AB,
556070-9353 Gothenburg 220,000 100
Consilium Transport safety AB
556109-5794 Gothenburg 120,000 100
Consilium security Group AB,
556547-6123 nacka 10,000 100
Consilium navigation Group AB,
556519-2126 nacka 1,000 100
Consilium navigation AB,
556045-1733 nacka 100,000 100
Consilium Research & development AB,
556080-5441 nacka 1,000 100
Consilium Business development AB,
556519-2134 nacka 1,000 100
Consilium production AB,
556709-9220 Gothenburg 1,000 100
Consilium nittan R&d AB,
556599-4505 Gothenburg 1,000 100
markground industri AB,
556046-1328 nacka 2,150 100
storm & Co. skeppsradio AB,
556083-7840 Gothenburg 2,000 100
Foreign subsidiaries
Consilium marine A/s Copenhagen/denmark 100
Consilium GmbH Hamburg/Germany 100
Consilium selesmar srl florence/italy 100
Consilium shanghai Co. ltd shanghai/China 100
Consilium norway As oslo/norway 100
Consilium marine systems BV schonhoven/netherlands 100
Consilium marine us inc. fort lauderdale/usA 100
Consilium marine Korea ltd pusan/Korea 100
Consilium marine italy srl Genua/italy 100
Consilium marine singapore ltd singapore 51
Consilium middle east (fZC) dubai/uAe 70
Consilium Qatar llC doha/Qatar 70
Consilium marine india pte ltd mumbai/india 70
Consilium Rmi spain sA Bilbao/spain 51
Interests in joint-ventures
Company/reg. no. Reg’d office share of capital/votes
Cn system AB, 556714-2244 Gothenburg/sweden 50
Consilium nittan Japan ltd Tokyo/Japan 50
Consilium marine Hellas ltd pireaus/Greece 50
Consilium säkerhet Väst AB, 556702-3857 Gothenburg/sweden 50
Consilium säkerhet Öst AB, 556693-0235 stockholm/sweden 50
Consilium marine oy Helsinki/finland 50
summary of proportionate share of joint ventures:
2011 2010
Current assets 34.0 28.8
non-current assets 2.0 2.9
Current liabilities -18.5 -15.9
non-current liabilities -0.6 -1.9
sales revenue 71.9 64.2
operating expenses -65.1 -61.0
net finance income/expense -0.3 0.7
Joint ventures do not have any liabilities, contingent liabilities or commitments for which
the Group may have a pecuniary obligation.
note 12 InvestMents In AssoCIAtes
Group
2011 2010
opening cost 0.1 8.5
disposals – -8.4
Acquisitions 0.4 –
Closing cost 0.5 0.1
number
of shares/ share of capital/ Carrying
Company/Reg. no.
interests
votes, % amount
Consilium säkerhet syd AB, 556629-7825 333 33.3 0.1
Consilium Vietnam JsC 99 49.0 0.4
The associates do not have any liabilities, contingent liabilities or commitments for which
the Group may have a pecuniary obligation.
note 13 FInAnCIAl RIsK MAnAGeMent
Financial risk management
Consilium Group is exposed to various types of financial risk in the course of its
operations. Group policies defined by the Board form the basis of management of
these risks at different levels in the Group. The policies are designed to provide an
integrated picture of the risk situation, minimise negative impacts on earnings and clarify
responsibility and authority in the Group. defined policies are monitored regularly at
local and central level, with reporting back to the Board.
Currency risk
Transaction exposure
As the Group’s companies have revenues and expenses in different currencies, it is
exposed to risks associated with currency fluctuations. This risk, which affects operating
profit, is referred to as transaction exposure.
net currency exposure converted to seK millions
(net exposure refers to revenues less costs)
2011 usD euR noK GBP JPY DKK total
marine & safety 193.8 96.0 -8.1 -57.4 -21.7 -6.5 196.1
2010 usD euR noK GBP JPY DKK total
marine & safety 205.0 73.8 -11.5 -58.3 -20.3 -3.8 184.9
The aim of currency risk management is to minimise in the short term the negative
effects of exchange rate movements on the Group’s earnings and financial position.
each subsidiary manages its transaction risks locally. The hedging instruments used are
forward exchange contracts. Consilium regularly hedges all foreign currency orders apart
from regular service and spare parts sales. The hedges are designated as highly effective,
as only signed contracts are hedged and not expected orders. A large proportion of
forward contracts qualify for hedge accounting.

not 13 FInAnCIAl RIsK MAnAGeMent, Cont’D
The table below shows foreign exchange contracts at the reporting date translated to
seK millions. All amounts are due within 24 months.
Group
2011 2010
Forward exchange contracts – cash flow hedges
euR 47.5 41.3
usd 148.5 153.4
GBp -28.9 -37.6
Yen -1.9 –
due within 12 months 158.3 157.2
The effect of cash flow hedges on the income statement is seK 11.1 (8.9) million, which
is reported under operating profit.
Gains and losses on forward exchange contracts at 31 december 2011 will be
released from equity to the income statement at various dates between 3 months and
2 years after the reporting date.
2011 2010
Average prices of forward contracts
euR 9.21 9.38
usd 6.73 7.17
GBp 10.24 10.97
JpY 0.079 0.082
The Group has applied iAs 39 with effect from 1 January 2005. Consilium believes
that all its derivative instruments qualify for hedge accounting. Changes in the fair value
of derivative instruments are therefore recognised in equity. At the end of 2011, the
negative change in the fair value of derivative instruments was seK 0.0 (7.8) million. in
2010, this was charged to equity after a deduction for deferred tax. At 31 december
2011, there was no negative value in the contracts.
sensitivity analysis
net exposure is highest in usd.
Factor Change, +/effect
on
operating profit,
seK million
net sales 1% +/-3.5
interest expenses 1% +/-0.1
personnel expenses 1% +/-2.2
depreciation 1% +/-0.4
exchange rate movements, usd 1% +/-2.0
exchange rate movements, euR 1% +/-1.0
The forward contracts move the earnings effect forward in time, as the majority of the
forecast flows for the coming twelve months period are covered by signed contracts.
during that time, measures can be taken to minimise the effects.
translation exposure
Consilium presents its income statements and balance sheets in seK. several Group
companies have a different presentation currency. This means the Group’s earnings and
equity are exposed during consolidation when foreign currencies are translated to seK.
This translation exposure, which mainly affects equity, is not normally hedged.
Price risk
Consilium is exposed to price risk associated with the purchase of components.
Component purchases for the period amounted to approx. seK 487.1 (489.7) million
and consist of a large number of input products each with different price trends over
a period of time. in most cases, permanent material price changes can be offset in the
companies’ prices, although price variation clauses are an exception.
Interest rate risk
As Consilium does not have any significant interest-bearing assets, the Group’s revenues
and cash flow from operating activities are essentially unaffected by changes in market
rates. Consilium’s net finance income and costs and earnings are affected by fluctuations
in borrowing interest rates. The Group is also indirectly affected by the effects of interest
rates on the overall economy. it is Consilium’s opinion that short-term fixed interest
bears a risk which is commensurate with the Group’s industrial operations. Consequently,
borrowings normally have a fixed-interest period of between 12 months and three
years. short-term interest rates have also been lower than long-term rates over the last
decade, which has had a positive effect on the Group’s results. outstanding loans and
overdraft facilities are listed below.
notes
Borrowing
liabilities to credit institutions consist of approx. 10 different borrowing facilities in
different currencies with different terms and conditions. interest rates vary between 2.5
percent and 7 percent. The average interest rate is 4.06 percent. The average interest on
overdrafts is 3.75 percent. There is an additional limit charge on the granted borrowing
facilities. The average for this charge is 0.2 percent. The Company is currently using a
derivative instrument of approx. seK 40 million. All loans carry variable interest rates
with fixed-interest periods of up to 90 days. see also note 21.
net debt at the end of the year amounted to approx. seK 205.7 (205.9) million. A
one-percent change in interest rates would affect earnings by seK 2.1 (2.1) million.
Credit risk
Credit risk is the risk that receivables due from customers will not be settled. The size of
each customer’s credit is assessed individually. All new customers undergo a credit check.
The idea is that the credit limits will reflect the customer’s ability to pay. The Group has
a good risk spread, with sales spanning different sectors and companies. in general, the
economic decline has had an adverse effect on companies’ financial situation, with the
risk of customer defaults increasing. Consilium’s customer defaults have historically been
low. losses on receivables arise when customers are declared bankrupt or are unable
to fulfil their payment commitments for some other reason. Consilium does not believe
there to be any significant credit risk associated with any particular customer, counterparty
or geographical region.
Cash & cash equivalents consist entirely of cash and bank deposits. more than half of
the cash & cash equivalents of seK 36.3 (36.3) million is invested with swedbank and
nordea. in the subsidiary Consilium middle east, seK 21.5 (16.7) million of cash & cash
equivalents are pledged as collateral for bank guarantees and letters of credit.
liquidity risk
Consilium has loans which mature at various dates. A large proportion of the liabilities
are overdraft facilities with contractual terms of one year. Refinancing risk is the risk
that Consilium will be unable to fulfil its commitments due to cancellation of loans and
difficulties in setting up new loans. Consilium manages this risk by ensuring it has good
cash preparedness.
Group Parent
2011 2010 2011 2010
Available cash 36.3 36.3 0.7 0.1
overdraft facilities 256.0 256.0 74.0 74.0
undrawn overdraft facilities -242.0 -242.2 -74.0 -74.0
Current liquidity 50.3 50.1 0.7 0.1
maturity analysis of liabilities, including interest due for each period under the loan
agreement.
1-2 2-5
31/12/2011 6 months - 1 year years years
Borrowing 133.0 109.0 –
Trade and other payables 227.3 22.0 –
forward exchange contracts 158.3 – –
518.6 131.0 –
Management of capital risk
The Group’s goal for capital structure is to continue to expand operations so that they
generate a return to shareholders, while keeping capital costs at a reasonable level. The
capital structure can be changed by raising or lowering the dividend, issuing new shares,
repurchasing shares and selling assets. Capital risk is expressed as the net/debt equity
ratio, which is interest-bearing liabilities less cash & cash equivalents divided by equity.
The aim is to create manoeuvrability by having a low debt/equity ratio. The net debt/
equity ratio at the end of 2011 and 2010 was as follows:
Group 2011 2010
interest-bearing liabilities 242.0 242.2
Cash & cash equivalents -36.3 -36.3
net debt 205.7 205.9
equity 276.0 265.8
net debt/equity ratio, % 75 77
Financial instruments per category within the Group
Derivatives Available-for-
used for sale financial
31/12/2011 Receivables hedging assets total
other non-current receivables
Trade accounts receivable
68.2 – – 68.2
and other receivables 297.2 – – 297.2
Cash and cash equivalents 36.3 – – 36.3
Total 401.7 – – 401.7
47

notes
note 14 InventoRIes
Group
2011 2010
Raw materials 79.8 82.1
products in progress 38.3 19.6
finished products 48.0 48.7
Advances from customers 3.0 4.3
impairment of inventories -2.2 –
Carrying amount 166.9 154.7
note 15 tRADe ReCeIvABles
Group
2011 2010
Trade receivables 232.0 223.7
provision for doubtful debts -2.6 -2.0
Carrying amount 229.4 221.7
Group
specification of difference 2011 2010
not past due 148.1 158.6
1-30 days 34.5 22.8
31-90 days 29.2 25.3
over 90 days 20.2 17.0
232.0 223.7
Group
Provision for doubtful debts 2011 2010
opening balance -2.0 -3.5
Reversal of previous provisions 0.2 3.5
Transfers during the year -0.8 -2.0
Closing balance -2.6 -2.0
The Group’s business operations are carried out in many different countries, and
trade accounts receivable pertain to local customers in each respective country. each
subsidiary always performs a credit-rating of new customers, and bad-debt losses have
historically been small. The majority of customers are recurrent and relatively large
companies. All trade accounts receivable, for which provisions have been made, are due
for payment.
note 18 sHARe CAPItAl DeveloPMent
48
note 16 WoRK In PRoGRess on ContRACt
2011
Group
2010
Contract revenue recognised during the period
Accumulated contract costs and
118.9 15.9
recognised profit less recognised losses
90.9 9.3
Advances received – 3.6
Retentions
Amounts due from client for
12.4 –
contracts in progress
Amounts due to client for
35.6 12.3
contracts in progress 20.3 –
note 17 PRePAYMents AnD ACCRueD InCoMe
Group Parent
2011 2010 2011 2010
prepaid rents 2.5 2.2 0.2 0.2
prepaid lease payments 0.2 0.2 0.0 0.0
prepaid insurance premiums 1.0 1.0 0.3 0.3
derivative instruments
percentage of completion,
3.0 9.2 – –
projects in progress 6.5 5.3 – –
other 8.0 14.9 0.1 0.1
Total 21.2 32.8 0.6 0.6
Date transaction Increase in share capital, seK total share capital, seK number of shares
1993 establishment of Company 50,000 10,000
1994 new share issue 20,575,000 20,625,000 4,125,000
1994 new share issue 4,375,000 25,000,000 5,000,000
2002 Conversion 7,500 25,007,500 5,001,500
2002 Conversion 60,900 25,068,400 5,013,680
2002 Conversion 5,000 25,073,400 5,014,680
2004 new share issue 5,500,000 30,573,400 6,114,680
2004 Conversion 2,100 30,575,500 6,115,100
2005 Conversion 550 30,576,050 6,115,210
2006 Conversion 4,915,805 34,491,855 6,898,371
2006 Warrants 12,160 35,504,015 7,100,803
2006 new share issue 11,834,665 47,338,680 9,467,736
2006 Conversion 266,660 47,605,340 9,521,068
2007 Conversion 4,905,675 52,511,015 10,502,203
2007 new share issue 1,500,000 54,011,015 10,802,203
2008 new share issue (registered 03/01/2008, warrants) 500,000 54,511,015 10,902,203
2009 new share issue 4,000,000 58,511,015 11,702,203
the par value of the share is seK 5. the shares comprise class A and class B shares
votes
A shares 907,490 10 votes 9,074,900
B shares 10,794,713 1 vote 10,794,713
11,702,203 19,869,613

note 19 PRovIsIons
Group
Provisions 2011 2010
provisions for pensions etc. 5.8 11.5
provision for warranty obligations 5.2 6.5
provisions for additional purchase consideration 11.0 17.4
other provisions 0.0 8.6
Total 22.0 44.0
The subsidiaries provide a certain type of warranty service and undertake to repair
or replace parts not performing satisfactorily. A provision of seK 5.2 (6.5) million for
expected warranty claims was recognised at the reporting date, based on previous
experience of the level of repairs and replacement parts. Warranty obligations are
normally valid for two years.
A provision of seK 17.4 million for a partially performance-based additional purchase
consideration was made in 2010. under an agreement, the additional purchase
consideration will be paid over 7 years. in 2011, the amount declined as a result of
payments and exchange rate differences.
Group
Provisions for pensions etc. 2011 2010
provisions at beginning of period 11.5 11.3
provisions during the period 2.7 1.8
Repayments -8.4 -1.6
provisions at end of period 5.8 11.5
unrecognised gains and losses amounted to seK 0.0 (0.0) million.
Group
Pensions 2011 2010
provisions for pensions and similar obligations:
Greece 0.1 –
netherlands 0.0 1.6
italy 5.7 4.5
united Arab emirates – 5.4
Total 5.8 11.5
Group
the main actuarial assumptions used: 2011 2010
discount rate 4.8% 4.5%
future salary increases 1.5% 3.5%
future pension increases 3.0% 3.0%
expected return on plan assets 1.0% 1.0%
inflation 2.0% 3.0%
This is an average of the actuarial assumptions.
Group
Amounts recognised in the income statement: 2011 2010
Current service cost 0.7 0.6
interest expenses 0.2 0.2
Actuarial gains -0.1 -0.3
Total 0.8 0.5
Amounts recognised in the balance sheet,
Group
calculated by reference to
2011 2010
present value of unfunded obligations 5.8 6.6
fair value of plan assets 0.0 0.5
5.8 7.1
notes
Pension provisions
opening balance 1 Jan 2010 11.3
provisions during the year 1.8
Amounts used during the year –
Reversals during the year -1.6
Translation differences –
Closing balance 31 dec 2010 11.5
provisions during the year 2.7
Amounts used during the year –
Reversals during the year -8.4
Translation differences –
Closing balance 31 dec 2011 5.8
included in non-current liabilities 31 december 2010 11.5
included in non-current liabilities 31 december 2011 5.8
Defined benefit pension plans
The Group has defined benefit pension plans, under which employees are entitled to
post-employment benefits based on the final salary and length of service. These pension
plans are in the netherlands and italy.
2011 2010 2009 2008 2007
As at 31 december
present value of defined-benefit
obligations 5.8 6.6 6.8 7.0 6.5
fair value of negotiation assets – 0.5 0.8 0.9 0.3
deficit/surplus in the plan
experience-based adjustments of
5.8 7.1 7.6 7.9 6.8
defined-benefit obligations
experience-based adjustments of
– – – – –
defined-benefit obligations – – – – –
Pension expenses 2011 2010
Total pension costs recognised in the
consolidated income statement are as follows:
Total cost of defined benefit plans 2.2 0.9
Total cost of defined contribution plans 17.0 15.9
Total pension costs 19.2 16.8
Pension expenses 2011 2010
Allocation of pension costs in the
consolidated income statement:
distribution costs 5.2 6.4
Administrative expenses 14.0 10.4
Total 19.2 16.8
Pension insurance with Alecta
The retirement benefit and family pension obligation for employees in sweden is
covered by insurance with Alecta. According to statement uRA 42 issued by the
swedish financial Accounting standards Council’s emerging issues Task force, this is a
multi-employer defined benefit plan. for the 2011 financial year, the Group did not have
access to sufficient information to enable it to report this plan as a defined benefit plan.
Consequently, the iTp pension plan, insured through Alecta, is reported as a defined
contribution plan. Alecta’s surplus may be distributed to policyholders and/or the
insured parties. The collective consolidation level is the market value of Alecta’s assets
as a percentage of its insurance obligations calculated by reference to Alecta’s actuarial
assumptions. This is not consistent with iAs 19.
Post-employment medical benefits.
The Group does not have any post-employment medical benefits.
49

notes
note 20 Costs BY nAtuRe oF eXPense
2011 2010
Raw materials and consumables used 473.4 471.4
Changes in inventories of finished goods
and products in progress 16.4 9.6
employee benefit expenses 280.5 272.7
marketing expenses 4.5 3.7
Rental costs 15.6 15.7
Transport and travel expenses 29.7 26.4
depreciation 36.4 34.4
other external services 27.4 30.2
other costs 41.6 24.6
Total 925.5 888.7
note 21 BoRRoWInG
Group Parent
2011 2010 2011 2010
Non-current
Bank loans 109.0 127.4 74.0 77.2
Current
Bank loans, maturity 6-12 months 133.0 3.2 – 3.2
overdraft facilities – 111.6 – 0.0
unutilised borrowing facilities at the end of the year amounted to seK 14.0 (6.9) million.
Contractual renegotiation dates:
Within 6 6-12 1-5 After
months months years 5 years total
At 31 december 2011 – 133.0 109.0 – 242.0
At 31 december 2010 3.2 111.6 127.4 – 242.2
Maturity of long-term borrowing:
Group Parent
2011 2010 2011 2010
1-2 years 109.0 127.4 74.0 77.2
2-5 years – – – –
After 5 years – – – –
effective interest at reporting date:
Group Parent
Percent 2011 2010 2011 2010
overdraft facilities – 3.1 – 3.1
Bank loans 4.7 5.2 2.0 4.7
other loans 6.0 – 6.0 –
Consilium’s borrowing arrangements are subject to covenants.
note 22 ACCRuAls AnD DeFeRReD InCoMe
Group Parent
2011 2010 2011 2010
Accrued interest expense 1.2 0.6 – –
Holiday pay 22.2 15.9 0.7 0.5
Accrued social security contributions 5.7 5.1 0.4 0.3
Warranty provisions 1.4 – – –
other items 15.1 20.5 0.1 0.1
Total 45.6 42.1 1.2 0.9
50
note 23 PleDGeD Assets
Group Parent
2011 2010 2011 2010
Own liabilities and provisions
floating charges 120.0 131.5 – –
investments in subsidiaries – – 40.0 –
investments in associates 0.0 8.4 – 8.4
pledged net assets in subsidiaries 29.1 30.7 – –
Cash & cash equivalents 21.5 16.7 – –
Total own liabilities and provisions 170.6 187.3 40.0 8.4
note 24 ContInGenCIes AnD GuARAntee CoMMItMents
Group Parent
2011 2010 2011 2010
Guarantee commitments on behalf
of other Group companies – – 141.9 147.9
Bank guarantees 25.8 31.1 – –
sureties for associates – 26.0 – 26.0
Total contingencies 25.8 57.1 141.9 173.9
The Group rents a number of office premises. The Group also holds various types
of plant and machinery and cars under leases. The rental contracts and leases are
subject to different terms and conditions and include a renewal option. The Group has
contingent liabilities in the form of bank guarantees totalling seK 25.8 (31.1) million
which have arisen in the normal course of its operations. The Group’s contingent
liabilities are not expected to result in any significant liabilities.
note 25 RelAteD PARtY tRAnsACtIons
Intra-group purchases and sales
100 (100) percent of the parent Company’s sales for the year were to its subsidiaries.
intra-group purchases and sales are subject to the same pricing principles as transactions
with external parties. no goods or services were purchased from associates during the
year.
Purchase of goods and services from related parties
Group Parent
2011 2010 2011 2010
platanen AB, management and
administrative services:
management services 3.5 3.5 3.5 3.5
Administrative services 0.3 0.3 0.3 0.3
fastighetsbolag Henriksborg HB, rent 3.9 5.4 0.7 0.9
Total 7.7 9.2 4.5 4.7
management services relate to the Chairman of the Board. purchased administrative
and inventory services. services purchased from platanen AB and its subsidiary
fastighetsbolaget Henriksborg HB are charged at standard market terms. management
services and rent from related parties are charged at standard market terms.

note 26 BoARD MeMBeRs AnD senIoR eXeCutIves
number at
reporting
date
2011 2010
of which
male
number at
reporting
date
of which
male
Group (with subsidiaries):
Board members 18 (91%) 19 (92%)
Ceo and other senior executives 17 (91%) 9 (97%)
Parent:
Board members 5 (80%) 5 (80%)
Ceo and other senior executives 5 (80%) 5 (80%)
Board fees are defined at the annual general meeting of shareholders. no other special
fees are paid to the Board. no fees are paid to the Group’s employees for board assignments
in the subsidiaries. Remuneration of the Ceo and management group comprises
the basic salary, including car allowance, and bonuses. pension is payable in accordance
with the current iTp plan. The management group consists of the president & Ceo,
the managers of the two business areas and the parent Company’s Cfo. Bonuses are
linked to financial targets and may not exceed three monthly salaries. The remuneration
arrangements for the Ceo are decided by the Board. The remuneration arrangements
for senior executives are decided by the Chairman of the Board and the Ceo.
Board fees of seK 450 (450) thousand were paid during the year. seK 150 (150)
thousand of this amount was paid to the chairman. payment for management services
is described in note 25. There are no pension obligations to the Board. There are no
pension obligations to the Chairman for 2010 or 2011. The Ceo received an annual
salary of seK 2,100 (2,004) thousand, including a car allowance. pension is payable in
accordance with the current iTp plan. The retirement age for the president & Ceo and
the Ceos of the subsidiaries is 65 years, while the period of notice is 12 months. no
special termination or retirement benefits are paid. senior management in Consilium
AB and its subsidiaries have normal salary agreements without any special retirement
benefits in the event of termination. in the event of involuntary termination, members
of senior management receive up to one annual salary, including normal pension costs.
no bonuses were paid during the year.
note 27 ReMuneRAtIon AnD BeneFIts DuRInG tHe YeAR
Board fees/
Pension Car
2011 Basic salary
Board
Bonus costs allowance total
Chairman, Carl Rosenblad 0.2 – – – 0.2
Board member, fredrik nygren 0.1 – – – 0.1
Board member, peter Carlberg 0.1 – – – 0.1
Board member, Ann-marie Åström 0.1 – – – 0.1
Nomination committee
Chairman, lennart norling – – – – –
Rasmus palmqvist – – – – –
Management 6.3 – 1.2 0.3 7.8
Ceo (2.1) (–) (0.5) (0.1) (2.7)
Total 6.8 – 1.2 0.3 8.3
Board fees/
Pension Car
2010 Basic salary
Board
Bonus costs allowance total
Chairman, Carl Rosenblad 0.2 – – – 0.2
Board member, fredrik nygren 0.1 – – – 0.1
Board member, peter Carlberg 0.1 – – – 0.1
Board member, Ann-marie Åström 0.1 – – – 0.1
Nomination committee
Chairman, lennart norling – – – – –
Rasmus palmqvist – – – – –
Management 6.9 – 2.0 0.2 9.1
Ceo (2.0) (–) (0.7) (0.1) (2.8)
Total 7.4 – 2.0 0.2 9.6
note 28 ADJustMents FoR non-CAsH IteMs
notes
Group Parent
2011 2010 2011 2010
disposal of assets – 3.5 – –
Acquisition of tax
loss carryforwards – -9.5 – –
provisions -15.5 – – –
other -3.6 11.2 – –
Total -19.1 5.2 – –
note 29 ACQuIsItIon oF Assets
Property, plant
Intangible
& equipment
assets
2011 2010 2011 2010
investments for the year
Cash flow from acquisition of
5.8 10.0 28.4 30.0
property, plant & equipment 5.8 10.0 28.4 30.0
note 30 eARnInGs PeR sHARe
2011
Group
2010
Calculation is based on:
profit/loss attributable
to owners of the parent 12.4 8.8
Average number of shares 11,702,203 11,702,203
outstanding warrants do not affect the calculation of the average number of shares as
the market price is lower than the subscription price.
note 31 non-CuRRent ReCeIvABles
Consilium has no past-due non-current receivables at 31/12/2011.
note 32 ConsolIDAteD CAsH FloW stAteMent
There are no significant balance sheet items attributable to the discontinued operations.
Cash flow from discontinued operations is entirely attributable to operating activities.
Analysis of the results of discontinued operations: 2011 2010
Revenues 5.1 17.0
Costs -12.4 -19.6
profit/loss before tax -7.3 -2.6
profit/loss for the year from discontinued operations -7.3 -2.6
51

notes
note 33 BusIness CoMBInAtIons
Company acquisitions in 2010
Consilium Middle East
Consilium acquired a further 9 percent of the shares in Consilium middle east during
the year. Consilium now owns 70 percent of the shares in Consilium middle east.
The purchase price amounted to seK 8.7 million in cash and an estimated seK 17.4
million for the additional purchase consideration. The additional purchase consideration
has been measured at the acquisition date fair value and reported as a provision in
the balance sheet. see also note 19. The transaction has been accounted for as a
transaction with minority shareholders and the difference between the consideration
transferred and the carrying amount of the non-controlling interest acquired, seK 22
million, has been recognised directly in equity.
Storm & Co Skeppsradio AB
Consilium acquired 100 percent of the shares in storm & Co skeppsradio AB during
the year. storm & Co skeppsradio AB’s net sales for the full year amounted to seK 6.0
million. The purchase consideration, which was paid in cash, was seK 1.6 million. The
net assets acquired, measured at fair value, were seK 0.4 million, mainly related to
inventories of seK 0.1 million, receivables of seK 0.5 million, , non-current assets of seK
0.1 million, and liabilities of seK 0.3 million. The difference between the purchase consideration
and the net assets acquired, seK 1.2 million, has been recognised as goodwill.
Markground Industri AB
Consilium acquired 100 percent of the shares in markground industri AB during the
year. The purchase consideration, which was paid in cash, amounted to seK 0.8 million
and the net assets acquired were seK 9.7 million, the majority of which, 9.5 million, consisted
of deferred tax assets related to tax loss carryforwards. The difference between
the purchase consideration and the net assets acquired is recognised as a tax asset.
The Board and CEO confirm that the consolidated annual
financial statements have been prepared in accordance with
international financial reporting standards (IFRS), as adopted by
the EU, and provide a true and fair view of the Group’s financial
performance and position. The Parent Company’s annual
financial statements have been prepared in accordance with
generally accepted accounting principles in Sweden and provide
52
Stockholm, 27 April 2012
a true and fair view of the Company’s financial performance
and position. The Board of Directors’ report for the Group and
Parent Company provides a true and fair view of the development
of their operations, financial position and performance, and
describes material risks and uncertainties to which the Parent
Company and its subsidiaries are exposed.
Carl Rosenblad Ove Hansson Peter Carlberg
Chairman of the Board CEO Board Member
Fredrik Nygren Carl Adam Rosenblad Ann-Marie Åström
Board Member Board Member Board Member
Our audit report was submitted in Stockholm on 27 April 2012
Sten Håkansson
Auditor
Öhrlings PricewaterhouseCoopers AB
note 34 events AFteR tHe RePoRtInG PeRIoD
There were no significant events after the reporting date.
note 35
The income statements and balance sheets for the parent Company and Group will be
presented for adoption at the annual meeting on 22 may 2012.

AuDItoR’s RePoRt
To the annual meeting of the shareholders of Consilium AB
(publ), corporate identity number 556480-3327
report on the annual accounts and consolidated accounts
We have audited the annual accounts and consolidated accounts
of Consilium AB (publ), for the year 2011. The annual accounts
and consolidated accounts of the company are included in the
printed version of this document on pages 26-52.
Responsibilities of the Board of Directors and the Managing Director
for the annual accounts and consolidated accounts
The Board of Directors and the Managing Director are
responsible for the preparation and fair presentation of these
annual accounts and consolidated accounts in accordance with
International Financial Reporting Standards , as adopted by the
EU, and the Annual Accounts Act, and for such internal control
as the Board of Directors and the Managing Director 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.
Auditor’s responsibility
Our responsibility is to express an opinion on these annual
accounts and consolidated accounts based on our audit. We
conducted our audit in accordance with International Standards
on Auditing and generally accepted auditing standards in Sweden.
Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
about whether the annual accounts and consolidated accounts are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the annual accounts
and consolidated accounts. The procedures selected depend on
the auditor’s judgement, including the assessment of the risks of
material misstatement of the annual accounts and consolidated
accounts, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to
the company’s preparation and fair presentation of the annual
accounts and consolidated accounts 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. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Board of Directors and the
Managing Director, as well as evaluating the overall presentation
of the annual accounts and consolidated accounts.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinions
In our opinion, the annual 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
as of 31 December 2011 and of its financial performance and its
cash flows for the year then ended in accordance with the Annual
Accounts Act, and the consolidated accounts have been prepared
in accordance with the Annual Accounts Act and present
fairly, in all material respects, the financial position of the group
as of 31 December 2011 and of their financial performance and
AuDItoR’s RePoRt
cash flows in accordance with International Financial Reporting
Standards, as adopted by the EU, and the Annual Accounts Act.
The statutory administration report is consistent with the other
parts of the annual accounts and consolidated accounts.
We therefore recommend that the annual meeting of shareholders
adopt the income statement and balance sheet for the
parent company and the group.
Report on other legal and regulatory requirements
In addition to our audit of the annual accounts and consolidated
accounts, we have examined the proposed appropriations of the
company’s profit or loss and the administration of the Board of
Directors and the Managing Director of Consilium AB (publ) for
the year 2011.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors is responsible for the proposal for
appropriations of the company’s profit or loss, and the Board
of Directors and the Managing Director are responsible for
administration under the Companies Act.
Auditor’s responsibility
Our responsibility is to express an opinion with reasonable
assurance on the proposed appropriations of the company’s
profit or loss and on the administration based on our audit.
We conducted the audit in accordance with generally accepted
auditing standards in Sweden.
As a basis for our opinion on the Board of Directors’ proposed
appropriations of the company’s profit or loss, we examined
whether the proposal is in accordance with the Companies Act.
As a basis for our opinion concerning discharge from liability,
in addition to our audit of the annual accounts and consolidated
accounts, we examined significant decisions, actions taken and
circumstances of the company in order to determine whether any
member of the Board of Directors or the Managing Director is
liable to the company. We also examined whether any member
of the Board of Directors or the Managing Director has, in any
other way, acted in contravention of the Companies Act, the
Annual Accounts Act or the Articles of Association.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Opinions
We recommend to the annual 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 Managing Director be discharged
from liability for the financial year.
Stockholm, 27 April 2012
Öhrlings PricewaterhouseCoopers AB
Sten Håkansson
Authorised Public Accountant
53

CoRPoRAte GoveRnAnCe
CoRPoRAte GoveRnAnCe
Corporate Governance Model
Consilium’s shares are listed on NASDAQ OMX Stockholm.
Consilium adopted the Swedish Code of Corporate Governance
(the Code) on 1 July 2008 in accordance with the stock exchange
rules. This corporate governance report constitutes part of the
formal annual report and has been reviewed by the Company’s
auditor. The Board’s internal control report can be found at the
end of this corporate governance report.
The main purpose of the corporate governance report is
to describe the bodies, control & management resources and
principles Consilium applies in order to achieve the Group’s
overall goal of creating value for shareholders. Consilium did
not derogate from the Code during 2011.
general Meeting of Shareholders
Shareholders’ influence in the Company is exercised at the shareholders’
meeting, which is Consilium’s highest decision-making
body. Shareholders wishing to participate in a shareholders’
meeting and vote their shares must be listed in the register of
shareholders no later than five working days before the meeting,
and must notify the Company of their intention to participate
in the meeting, indicating any advisors attending, as instructed
in the notice of the meeting. Shareholders unable to attend may
exercise their rights through a proxy, in accordance with the
Swedish Companies Act.
Annual general Meeting
The annual general meeting of shareholders is held within six
months of the end of the financial year. The annual general
54
Commission/mandate
Reporting
General Meeting of
shareholders
Auditor Board
Fire safety &
Automation
business area
President & Ceo
Management
Group
Marine & safety
business area
nomination
Committee
external regulations
swedish Companies Act
swedish Accounting Act
swedish Annual Accounts Act
Rules for issuers
swedish Code of Corporate Governance
Internal Controls
Board’s Work plan
Ceo’s instructions
Group policies and instructions
Business plan, goals and strategies
Market
organisation
meeting deals with the election and remuneration of Board members
and auditors, establishment of guidelines for remuneration
of key management personnel, adoption of the income statement
and balance sheet, allocation of profit and discharging members
of the Board and the CEO from liability for the financial year.
If there is reason to convene a shareholders’ meeting before
the next annual general meeting, the shareholders are called to
an extraordinary general meeting. Consilium did not hold any
extraordinary general meetings in 2011.
2011 AgM
The annual general meeting of the shareholders of Consilium to
deal with the 2010 financial year was held in Nacka on 19 May
2011. In addition to the business described above, the meeting
adopted resolutions as follows: no dividend to be paid to shareholders,
Board mandate to issue new shares or convertible bonds (with
a derogation from preferential rights for shareholders) for financing
of possible acquisitions and authorisation to decide on the purchase
of treasury shares to develop the Company’s capital structure.
All Board members were re-elected and Carl Rosenblad was
re-elected as Chairman. Shareholders present at the meeting
represented 76 percent of the votes and 60 percent of the capital.
nomination Committee
The task of the nomination committee is to propose candidates
for election to the Board prior to the annual general meeting. In
2011, the nomination committee consisted of Lennart Norling
(Chairman, independent of the Company and major shareholder),

Board members – attendance, relationship and fees:
Attendance Relationship Relationship
elected 2011 Consilium
nonmajor
owners Fees
Carl Rosenblad, Chm. 1994 5(5) independent
nonindependent
150,000
Carl Adam Rosenblad 1996 5(5) independent independent –
fredrik nygren 2007 4(5) independent independent 100,000
peter Carlberg 2008 3(5) independent independent 100,000
Ann-marie Åström 2009 3(5) independent independent 100,000
ove Hansson, Ceo – 5(5) – – –
Anna Holmgren, sec. – 5(5) – – –
Chairman of the Board Carl Rosenblad and Rasmus Palmqvist
(independent of the Company, representing one of the major
shareholders, Sound Invest). The nomination committee held one
meeting in 2011.
The nomination committee is also responsible for the composition
and working procedures of the Board. At the 2011 annual
general meeting, the nomination committee reported on its work
and also presented and explained its proposals regarding election
of the Board and auditor. The committee’s members have received
compensation of SEK 10,000 per person, and reimbursement for
expenses, in accordance with the decision of the annual general
meeting.
Board
Consilium’s Board has ultimate responsibility for managing the
Company’s affairs between the annual general meetings. The
Board appoints the CEO, and makes decisions on issues concerning
the strategic direction of the business and the Company’s
overall organisation. Since the annual general meeting held in
May, Consilium’s Board has consisted of five members.
The Board is composed of persons representing the Company’s
major shareholders and persons who are independent of the
major shareholders. The CEO does not serve on the Board, but
is always present at Board meetings. The CFO also normally
attends the meetings and acts as Minutes Secretary. Other
employees in the Group may also attend Board meetings in a
reporting capacity.
In 2011, the Board held five meetings at which minutes were
taken. Matters dealt with at the meetings included the annual
report, interim financial reports, market situation, goals, strategies,
budgets, organisational changes and strategic cooperation.
The attendance and independence of the Board and co-opted
members is shown in the table above.
Chairman of the Board
The Chairman is responsible for ensuring the work of the Board
is conducted efficiently and that the Board performs its tasks. The
Chairman organises and leads the work with the aim of creating
the best possible conditions for the Board’s members. The
Chairman also remains in regular contact with the Company’s
CEO in order to ensure the Board has access to sufficient
information to allow it to follow the Company’s performance and
financial position, and plan accordingly. Carl Rosenblad is
Chairman of the Board.
Work of the Board
The Board of Directors has adopted a formal work plan which
defines the division of work between the Board and CEO. The
CoRPoRAte GoveRnAnCe
formal work plan also regulates the Board’s areas of work and
responsibility, duties and decision-making powers. The main
duties involve making decisions on strategic issues, assuming
responsibility for the Company’s capitalisation and capital
structure, ensuring the Company is efficiently managed and
making decisions on other matters of importance such as large
investments and acquisitions. The Board’s formal work plan also
contains rules on information management and on evaluation of
the work of the Board and the CEO. A written set of instructions
to the CEO defines the work division between the Board and
CEO, and regulates the powers of the CEO.
An important task is to ensure correct and timely reporting in
the Company, and to the Board and share market. Accordingly,
the Board receives regular reports detailing significant events,
order intake trends, invoicing, results, cash flow, financial
position and the number of employees in the Group and its companies.
During the year, the Board has at least one meeting with
the chief auditor who also maintains regular contact with the
Chairman of the Board.
Committees
The Board of Consilium has decided that the size of the Company
does not warrant the establishment of an audit committee, and
auditing matters are therefore considered by the full Board. On
at least one occasion during the year, Consilium’s auditors report
in person to the Board on their observations from the audit
and their evaluation of the Group’s internal control. Matters
concerning exchange rate movements, investments, acquisitions
and strategic direction are also dealt with.
For the reasons mentioned above, Consilium has decided
the full Board will deal with remuneration matters rather than
establishing a special remuneration committee. The main work
involves defining the CEO’s employee benefits, and preparing
share-based payment programmes, such as option schemes, for
adoption by the annual general meeting.
President and Ceo
The President and Chief Executive Officer of Consilium is Ove
Hansson. The division of work between the CEO and Board and
the CEO’s powers are regulated in the instructions to the CEO,
which are defined and revised on an annual basis. In addition to
the President & CEO, Group management comprises the CFO,
the CEOs of the business areas and the Manager of Consilium’s
Marine &
safety
business area
Fire & Gas Marine
Fire & Gas transport
Fire & Gas Building
navigation Marine
special niche products
Consilium AB
Fire safety &
Automation
business area
Fire safety oil & Gas
Automation oil & Gas
Global sales
and service
35 offices
19 countries
55

CoRPoRAte GoveRnAnCe
international market organisation. More information about
Group management can be found on page 61.
operational control
Consilium’s operations are organised into a number of divisions
in its two business areas, Marine & Safety and Fire safety &
Automation, which are responsible for Consilium’s total offering
in the form of products and systems. The operations are
organised into a clear functional structure, which allows the
Company to leverage synergies and economies of scale in development,
production, purchasing, marketing and sales. The operations
are led by the two business area managers. In parallel with
Consilium’s product divisions, there is a global sales and service
organisation led by the head of Consilium’s international market
organisation. All three managers report to the President & CEO.
The Group’s business organisation is structured according to
the principle of decentralised responsibility and authority. Each
business area has its own subsidiary board of which the Group
President is chairman. Like the Parent Company, each subsidiary
has a formal work plan for its board and written instructions for
the managing directors. The subsidiaries also have a number of
policies and instructions governing operations, including the business
areas’ divisions. These areas include IT, environment, quality,
equality, authorisation procedures, financing and currency hedging.
The Group President has overall responsibility for day-to-day
operations and their control, and the managers of the subsidiaries
report on weekly order intake, invoicing and order backlog for
each profit centre. Monthly financial statements are also prepared
for each profit centre. These are analysed at different levels and
consolidated at Group level.
reporting
Internal reporting takes place within the same system used for
preparation of the consolidated financial statements and their
quarterly presentation to the market. In addition to the income
statements and balance sheets, the monthly financial reports
contain key financial ratios and other relevant information.
Analyses are made of inventory levels and movements, trade
receivables and customer credit periods.
The fundamental principle of the Group’s reporting and followup
systems is that they are characterised by transparency and
decentralisation. The management of each subsidiary is strongly
committed to developing and rationalising these processes.
A key to success in this area is access to relevant and correct
information, which is measured and followed up. Much effort has
been devoted to the implementation and development of business
systems for measuring the profitability of individual transactions,
customers, sectors and geographical markets. Individual costs
are monitored and measured at critical stages in production,
administration and sales. These are then compared with previous
results and targets. The information obtained is also used for
internal benchmarking, which encourages improvement and
exemplifies good practice.
remuneration of the Board and key Management
Personnel
The 2011 annual general meeting adopted Board fees of SEK
450,000, distributed as follows: Chairman of the Board SEK
150,000, external Board members SEK 100,000 each.
56
The meeting also adopted guidelines relating to the compensation
of key management personnel, which are essentially in line
with market salaries and other terms of employment. Key management
personnel’s compensation consists of the basic salary,
including car allowance, and any bonuses earned. Pension is payable
in accordance with the current ITP plan. Bonuses are linked
to financial targets and may not exceed three monthly salaries.
The 2007 annual general meeting authorised the Board of
Consilium to establish an incentive scheme for key management
personnel by issuing up to 600,000 warrants entitling holders to
subscribe for a total of 600,000 shares in Consilium. More information
about the warrants can be found on page 23.
Auditor
The auditor’s task is to examine Consilium’s financial statements
and accounting records and the administration of the Board
and CEO. The chief auditor also submits an audit report to the
annual general meeting. Shareholders have the opportunity to put
questions to the auditor at the meeting.
Consilium’s auditor is elected by the annual general meeting.
The 2010 annual general meeting elected Sten Håkansson from
Öhrlings PricewaterhouseCoopers AB as auditor for a period of
three years. At the 2011 annual general meeting, it was decided
that auditors would be paid against invoice in accordance with
approved purchasing principles.
Fees paid to Öhrlings PricewaterhouseCoopers AB in 2011
amounted to SEK 1.7 million (auditing services SEK 1.7 million,
other services SEK 0.0 million).
Consilium’s stakeholders
Consilium is dependent on a number of external parties.
Cooperation and contacts with these parties may take the form
of contractual and informal relationships or partnerships. The
Company’s stakeholders are parties who affect or can be affected
by Consilium’s actions. The simplified stakeholder model on the
following page does not show fragmented stakeholders such as
competitors with whom the Company does not have any clear
relationship. Added to the model are phrases expressing values
which are inherent in the relationships or which Consilium seeks
to establish.
Sustainable development
Consilium is strongly committed to embracing the principles
of sustainable development in its operations. Consilium sees
sustainable development as “development that meets the needs
of the present without compromising the ability of future
generations to meet their own needs” (UN 1987). The Group’s
sustainable development work will also focus on The Natural
Step’s four sustainability principles and the environmental quality
objectives adopted by the Swedish parliament.
It is Consilium’s goal that all product companies and production
units will have an environmental management system according
to ISO 14000. It is important that the Company’s operations are
planned, implemented, monitored and improved according to
this standard in order to reduce adverse environmental impacts.
Consilium sees this work as a natural part of its commitment to
the Company’s stakeholders. In addition, it is Consilium’s firm
belief that a successful environmental programme also generates
economic benefits, both in the short and long term.

stakeholder model
Global supplier base
Responsibility, consideration and respect
environmental policy
Based on the company’s own requirements and the expectations
of the outside world, Consilium works for a better environment
and endeavours to offer environmentally-friendly products and
solutions which promote sustainable development. Consilium
regards legislation and regulations as a minimum requirement
and, as in all its operations, aims for constant improvement and
reduction of the Group’s environmental impacts. In order to
achieve this, Consilium will:
• allocate sufficient resources for environmental work
• integrate environmental issues into its quality management
system
• in an overall perspective, treat environmental measures as a
long-term investment
• encourage and develop environmental awareness among
employees, and
• cooperate with environmentally-aware suppliers and partners.
The Board’s internal control report for the 2011 financial
year
Consilium’s Board is responsible for ensuring internal control is
conducted in accordance with the Swedish Companies Act and
the Swedish Code of Corporate Governance. Consilium’s financial
reporting follows the legislation and regulations for companies
listed on NASDAQ OMX Stockholm and the local regulations in
the Company’s countries of operation.
Consilium’s financial reporting will:
– be correct and complete, and prepared in accordance with
current laws, standards and recommendations
– provide a true and fair description of the Company’s
operations, and
– support a rational and well-informed valuation of the
Company’s operations.
Best customer value on the market
Customers
suppliers Partners
Consilium AB
Community employees
shareholders
Creating and delivering value
CoRPoRAte GoveRnAnCe
strengthening our own organisation
Attracting and motivating staff
In addition to these goals, internal financial reporting must
support correct business decisions at all levels in the Group. The
Board’s description of internal control is based on the structure
of COSO’s (Committee of Sponsoring Organisations of the
Treadway Commission) framework for internal control.
Control environment
In order to create and maintain a functioning control environment,
the Board has adopted a number of fundamental documents
of key importance to financial reporting. These include
the Board’s formal work plan and the instructions to the CEO.
The latter is primarily responsible for ensuring the control
environ ment adopted by the Board is upheld in the day-to-day
operations. The CEO reports regularly to the Board in accordance
with defined procedures. Reports are also submitted to the
Company’s auditor. The internal control structure is also based on
a management system which reflects the company’s organisation
and method of operating, with clearly defined roles, areas of
responsibility and delegation of authority.
The Group’s control documents, such as policies, guidelines
and code of business ethics, also play an important role in the
control structure. Control documents dealing with financial
reporting are key components of the financial reporting control
environment. These documents are regularly updated to reflect
amendments to reporting standards, laws and listing regulations.
risk assessment
The Group regularly carries out risk assessment in order to
identify significant risks associated with financial reporting. The
main risk associated with financial reporting relates to material
misstatements and insufficient disclosure in the financial statements,
which can occur during recognition and measurement of
assets, liabilities, income and expense. Other risks include fraud,
57

CoRPoRAte GoveRnAnCe
Internal control in Consilium
loss or embezzlement of assets. Risk management is incorporated
into each process, and different methods are used to assess and
limit risks and to ensure the risks to which Consilium is exposed
are managed in accordance with adopted policies, instructions and
established monitoring procedures, and that these minimise potential
risks and support correct accounting, reporting and disclosure.
Control activities
Control activities are designed in such a way as to ensure effective
management of what the Board and management consider
to be significant risks, and in doing so to prevent, identify and
correct errors in financial reporting. These control activities may
consist of decision-making procedures and processes for important
decisions such as acquisitions, other major investments, disposals,
agreements and analytical monitoring. An important task
for Consilium’s staff functions is to implement, develop and maintain
the Group’s control routines and carry out internal controls
focusing on business-critical areas. Process managers at different
levels are responsible for carrying out the necessary controls
relating to financial reporting.
Accounting and reporting processes have controls relating
to measurement, accounting policies and accounting estimates.
All entities in the Group have their own controllers/financial
managers who participate in the evaluation of their own
reporting. The entities and Group conduct regular financial
reporting analyses, which are an important way of ensuring
financial reports do not contain material misstatements. The
Group’s control organisation plays a key part in the internal
control process and is responsible for ensuring each entity
submits correct, complete and timely financial reports.
Information and communication
Consilium has internal information and communication paths
which support complete and correct financial reporting. These
include control documents such as internal directives, guidelines
and policies on financial reporting. Regular updates and briefings
about changes in accounting policies and reporting and disclosure
requirements are communicated and made available to all
employees concerned.
58
Risk
assessment
Monitoring
Control
environment
Information
Control
structure
The Group’s intranet gives the organisation access to policies
and guidelines. The Board receives regular financial reports.
External information and communication is governed by the
Company’s information policy which describes Consilium’s
general principles for information-sharing.
Monitoring
The Group’s compliance with adopted policies and guidelines
is monitored by the Board and Company management.
The Company’s financial situation is dealt with at each Board
meeting. Consilium’s management monitors the financial results
on a monthly basis by analysing deviations from the budget,
forecast and previous year. All monthly accounts are discussed
with the management of each business area. Financial reporting
is reviewed by the Board prior to publication of quarterly and
annual reports.
The auditors also examine internal control in the Group as
part of their annual audit. The Board meets the auditors in order
to review internal control and, if applicable, give the auditors
special internal control assignments. It is the auditors’ opinion
that internal control is good.
Internal control
Consilium has an internal risk assessment function which reports
directly to the CFO. The function reports implemented control
measures to the Group President. Where control measures include
visits to subsidiaries or their divisions, the activity is carried
out in accordance with a specially created control process. This
process has been developed in order to optimise working methods
and delivery of value-creating reports. Internal control has also
involved development of a uniform risk management process for
areas such as customer credit policy and insurance solutions. This
will strengthen corporate governance in the Group.
Consilium does not have a special internal audit function. It is
the Board’s opinion that there are no special circumstances in the
Company or its operations which warrant the establishment of
such a function.
Stockholm, 27 april 2012
Carl Rosenblad
Chairman of the Board
Peter Carlberg Fredrik Nygren
Board Member Board Member
Carl Adam Rosenblad Ann-Marie Åström
Board Member Board Member
Ove Hansson
CEO

AuDItoR’s RePoRt on tHe CoRPoRAte
GoveRnAnCe stAteMent
To the annual meeting of the shareholders of Consilium AB
(Publ), corporate identity number 556480-3327
It is the Board of Directors who is responsible for the Corporate
Governance Statement for the year 2011 on pages 54-58 and that
it has been prepared in accordance with the Annual Accounts
Act.
We have read the Corporate Governance Statement and based
on that reading and our knowledge of the company and the
group we believe that we have a sufficient basis for our opinions.
This means that our statutory examination of the Corporate
Governance Statement is different and substantially less in
scope than an audit conducted in accordance with International
Standards on Auditing and generally accepted auditing standards
in Sweden.
In our opinion, the Corporate Governance Statement has been
prepared and its statutory content is consistent with the annual
accounts and the consolidated accounts.
Stockholm, 27 April 2012
Öhrlings PricewaterhouseCoopers AB
Sten Håkansson
Authorised Public Accountant
AuDItoR’s RePoRt on tHe CoRPoRAte GoveRnAnCe stAteMent
59

BoARD
BoARD
Carl Rosenblad
b.1935.
ll.B. m.sc Business and economics.
elected to the Board 1994.
elected Chairman 2000.
Other directorships:
Chairman of the Board of Consilium AB,
Chairman of the Board of svenska
Bostadsfonden 1-11 AB, platanen
AB, Tessin fastighets AB, svenska
Bostadsfonden management AB,
svenska Bostadsfonden institution 1 AB.
Shareholding in Consilium, see page 23.
Peter Carlberg
b. 1955.
Graduate engineer.
elected to the Board 2008.
Ceo of Alfa laval Korea.
Other directorships:
director of swedish Chamber
of Commerce south Korea.
Shareholding in Consilium: 1,000.
60
Carl Adam Rosenblad
b. 1965.
m.sc Business and economics.
elected to the Board 1996.
manager business area marine & safety.
Other directorships:
director of Consilium AB subsidiaries
and platanen AB.
Shareholding in Consilium: 24,000.
Warrants: 37,500.
Ann-Marie Åström
b. 1965.
ll.B.
elected to the Board 2009.
Ceo of Gotland Tankers AB.
Other directorships:
deputy Chairman of Rederi AB Gotland,
director of Wisby shipmanagement AB
and Hafnia management A/s.
Shareholding in Consilium: 1,000.
Fredrik nygren
b. 1966.
B.sc. (econ).
elected to the Board 2007.
Ceo of C2sat Holding AB
(publ), C2sat Communications AB
and C2sat production AB.
Other directorships:
Chairman of the Board of Twinblade
Technologies Holding sweden AB, and
Advanced inertial measurement (Aims AB)
systems sweden AB. director of
Josab international AB.
Shareholding in Consilium: 0.
All directorships are correct at
31 december 2011.

MAnAGeMent
ove Hansson
b. 1955.
ll.B. m.sc Business and economics.
Present position:
president & Ceo of Consilium AB.
Chairman of the Board in Consilium’s
subsidiaries.
Previous positions and directorships:
director of Consilium AB 2000-2004.
Shareholding in Consilium: 100,086.
Warrants: 100,000.
Carl Adam Rosenblad
b. 1965.
m.sc Business and economics.
Present position:
manager business area marine & safety.
director of Consilium AB subsidiaries
and platanen AB.
Previous positions and directorships:
manager marine & safety navigation.
Shareholding in Consilium: 24,000.
Warrants: 37,500.
Anna Holmgren
b. 1965.
diploma in economics.
Present position:
finance manager and Treasurer
of Consilium AB.
Previous positions and directorships:
Cfo of Consilium’s subsidiaries.
Shareholding in Consilium: 0.
Warrants: 10,000.
l. Gilbert Babu
b. 1959.
engineer.
Present position:
manager business area fire safety &
Automation. manager of Consilium
middle east fZC. director of Consilium
middle east fZC and subsidiaries.
Previous positions and directorships:
Ceo of sAAB Rosemount
middle east fZC.
Shareholding in Consilium: 0.
Warrants: 0.
Roger orreteg
b. 1956.
m.sc Business and economics.
Present position:
Group controller of Consilium AB.
Previous positions and directorships:
Cfo of Consilium’s subsidiaries.
Shareholding in Consilium: 500.
Warrants: 10,000.
Part of management from January 2012.
Anders Roos
b. 1947.
m.sc. in engineering.
Present position:
manager global market organisation.
director of Consilium’s subsidiaries.
Previous positions and directorships:
director of Consilium AB.
Head of business development at
Consilium AB. Business area manager
saab Rosemount marine.
Shareholding in Consilium: 15,000.
Warrants: 45,000.
Auditor
sten Håkansson
Chief Auditor, appointed 2010.
Öhrlings pricewaterhouseCoopers AB
113 97 stockholm
MAnAGeMent
61

HIstoRY
HIstoRY
Consilium’s products and solutions have been on the market a
long time and bear the hallmark of long tradition and history –
this is particularly relevant in 2012 as the Consilium’s speed logs
(sAl) celebrate their 100-year jubilee. Consilium has developed
many of the products and systems it markets, while others have
been acquired. With its global market organisation, Consilium is
increasingly able to also offer the sale of external suppliers’ quality
products.
Consilium’s marketed trademarks have been installed, used and
gained respect over many decades. the description below shows
some important years in Consilium’s modern history since the
Company’s 1994 stock exchange introduction.
1995 Consilium acquires Selesmar Italy, which becomes
Consilium Selesmar.
1997 Consilium launches the world’s first integrated fire alarm
and gas detection system. In the same year, Consilium
acquires a marine VDR development project from
Wahlberg and Sehlin, completing and industrialising the
product.
1999 Consilium’s first voyage data recorder is granted
international type approval.
2000 Consilium acquires Japanese Nittan’s marine fire alarm
operation.
2003 Consilium develops a fire alarm system customised for the
transport market, which achieves a major breakthrough
when Danish State Railways (DSB) orders systems for
100 train sets. In the same year, Consilium launches a
new radar family, Selesmar Selux, after several years of
intensive development. Consilium also launches the new
T-series family of logs, and presents a solution for using
the log’s acoustic pulse to measure bottom depths, which
goes on to become the world’s first combined speed log
with echo sounder function.
2004 Consilium establishes the manufacture of navigational
products in China. In the same year, Consilium acquires
Norwegian competitor Servoteknikk.
2005 In response to new international regulations, Consilium
launches a simplified voyage data recorder, Consilium
S-VDR. The same year sees the launch of Consilium’s
CS4000 fire alarm system. The system represents
Consilium’s first step toward a new construction
philosophy and evolves into the Group’s most successful
proprietary market offering.
2006 Consilium launches a new generation of marine voyage
data recorders and sells its 1000th VDR – a milestone in
the Group’s history. Consilium and Japanese company
Nittan merge their Scandinavian fire alarm operations for
the land market to form a new company, CN System AB.
62
2007 As part of its efforts to establish a clearer focus on
products and systems for safety and navigation,
Consilium Group portions out Precomp Solutions AB
(publ), formerly Consilium Components, to its shareholders.
During the year, the company launches two new
products – an emission monitoring system (EMS) for
ships and an electronic chart display and information
system (ECDIS).
2008 Consilium establishes a new business area in response
to increasing demand from the oil and gas industry,
particularly in the Middle East. The Automation business
area started life as a project within Consilium’s business
development. The Company establishes a new market
company in Qatar to serve the local market with sales,
planning & design, customer service and support.
2009 Consilium merges the operations in the Fire & Gas and
Navigation business areas to form a new business area:
Consilium Marine & Safety. During the year, Consilium
sells its half share in the tank level measurement company
Jowa Consilium US Inc. The disposal means there are
no longer any entities reported under Other operations.
During the year, Consilium also acquires 51 percent of the
shares in its sales representative in Spain, Radio Maritime
International S.A., and the company’s name is changed to
Consilium RMI Spain S.A.
2010 Consilium continues to strengthen its market organisation
and establishes additional offices in Belgium, India and the
United States. In total, the company has its own offices in
19 countries and 95 percent of sales come from markets
outside Sweden. The strong global reach also attracts
other product suppliers and Consilium adds a number
of external supplementary products and systems that
have good potential for increasing growth with stronger
margins. Sales of products and systems to new markets
and specific niche segments increase progressively and
Consilium’s orders include orders for fire alarm systems
for high-speed trains in China and a breakthrough order
for integrated navigation and communication systems.
2011 Consilium’s speed logs (SAL) are celebrating their 100year
jubilee. As a result of the progressive increase in
sales of fire safety systems to the on-shore oil and gas
industry, the name of the Automation business area is
changed to Fire safety & Automation. Consilium signs a
global cooperation agreement with Orange for the sale
and installation of marine satellite communication solutions.
With traditional marine products as its technology
and volume base, Consilium increases its focus on specific
niche products and successfully launches special radar for
the detection of oil spills (Consilium Oil Spill Detection
Radar).

ADDResses
HeAD oFFICe
Consilium AB
Västra finnbodavägen 2-4
p.o. Box 5028
131 05 nacka
Tel: +46 8 563 05 300
fax: + 46 8 563 05 399
info@consilium.se
www.consilium.se
sWeDen
Consilium Marine & Safety AB
salsmästaregatan 21
p.o. Box 8763
402 76 Gothenburg
Tel: +46 31 710 77 00
fax: + 46 31 710 78 00
Västra finnbodavägen 2-4
p.o. Box 5021
131 05 nacka
Tel: +46 8 563 05 100
fax: +46 8 563 05 199
Storm & Co Skeppsradio AB
salsmästaregatan 21
p.o. Box 8763
402 76 Gothenburg
Tel: +46 31 710 77 00
fax: +46 31 710 78 00
Cn System AB
södra långebergsgatan 34
421 32 Västra frölunda
Tel: +46 31 761 04 15
fax: +46 31 28 85 95
Consilium Säkerhet Syd AB
Kamaxelgatan 11
212 41 malmö
Tel: +46 40 36 50 60
fax: +46 40 36 50 61
Consilium Säkerhet Väst AB
marieholmsgatan 64
415 02 Gothenburg
Tel: +46 31 710 79 00
fax: +46 31 710 79 20
Consilium Säkerhet Öst AB
Hammarby fabriksväg 25
120 30 stockholm
Tel: +46 8 563 05 200
fax: +46 8 563 05 279
BelGIuM
Consilium Marine Systems BV
Graaf Jansdijk 22
8380 Zeebrugge
Tel: +32 50 70 30 97
CHInA
Consilium Shanghai Co. Ltd
Room 108, Block 2
Hangxing Business Building
no. 27, lane 258 Caoxi Road
shanghai 200235
Tel: +86-21 51 52 22 60
fax: +86-21 51 52 22 90
Consilium Shanghai FTZ
Room e, level 4
no. 129, north fu Te Road
Wai Gao Qiao free Trade Zone
shanghai 200131
Tel: +86-21 58 68 3716/17/18
fax: +86-21 58 68 3715
Consilium Dalian
Room 502
no.33 HongQiao (street)
GanJingZi district
dalian City
liaoning province116033
Tel: +86 411 83864460
fax: +86 411 83864460
Consilium Qingdao
Room 301, unit 2, Bldg 14
Yihva Block
Road Huacheng, district Chengyang
Qingdao 266109
Consilium hong kong Co., Ltd.
unit 02, 12/f, AT Tower
180 electric Road
Hong Kong
Tel: +852 6376 9188
FInlAnD
Consilium Marine oy
Vapaalantie 2 A 5
01650 Vantaa
Tel: + 358-405 252 825
fax: + 358-425 252 825
GeRMAnY
Consilium gmbh
Grootsruhe 4
d-20537 Hamburg
Tel: +49-40-822 22 95-0
fax: +49-40-822 22 95 99
GReeCe
Consilium Marine hellas Ltd
19, Zoodohou pigis street
pireaus 18538
Tel: +30-210 428 7097/8
fax: +30-210 428 7165
InDIA
Consilium India Pvt. Ltd.
210, Raheja Arcade
sector - 11, CBd Belapur
navi mumbai - 400 614
Tel: +91 2267935150
fax: +91 2267937921
Consilium Marine India Pvt. Ltd.
flat no. 501, sai Krishna Complex,
Beside sri Kanya Theatre,
Railway new Colony,
Visakhapatnam – 530 016
Tel: +91 891 301 0320
fax: +91 891 301 0319
Consilium Marine India Pvt. Ltd.
1st floor, Velyn Villa, perumanoor po
Kochi – 682 015, Kerala
Tel: +91 484 238 4298
fax: +91 484 238 5298
production: Consilium and iR stockholm
photos: Gettyimages: dan Barnes, neil Beer, Clerkenwell, steve Cole, Andrew Holt, Kevin phillips,
monty Rakusen, Roger Tully, Tetra images, Zou Yanju. olof Holdar (Ceo, Board, management)
print: intellecta infolog solna
ItAlY
Consilium Italy Srl
Via Romita 26
50020 montagnana V.p.
montespertoli (fi)
Tel: +39-0571 68 121
fax: +39-0571 67 0798
Consilium Italy Srl
Via xii ottobre, 2/52A
16121 Genua
Tel: +39 010 86 06 031
fax: +39 010 86 06 290
via melisurgo
44 i-80133 naples
Tel: +39 081 5423122
fax: +39 081 5423122
JAPAn
Consilium nittan Marine Ltd
4 fl, ART-1 Bldg., 21-7,1-chome,
Hatagaya shibuya-ku
Tokyo 151-0072
Tel: +81 03 5465 1881
fax: +81 03 5465 1887
netHeRlAnDs
Consilium B.V.
Achterwetering 13-15
2871 RK schoonhoven
Tel: +31-182 382 422
fax: +31-182 386 675
noRWAY
Consilium norway AS
Karihaugveien 89
no-o 1086 oslo
Tel: +47-22 30 90 30
fax: +47-22 30 92 05
QAtAR
Consilium Qatar LLC
p.o. Box 24156
2nd floor, Jafco Building
doha - Qatar
Tel: +974-442 48 49
fax: +974-441 76 02
sInGAPoRe
Consilium Marine
singapore pte ltd
7030 Ang mo Kio Avenue 5
05-58 northstar
singapore 569880
Tel: +65-6570 8998
fax: +65-6570 8698
sPAIn
Consilium rMI Spain S.A.
C/Gran Vía 81
5ª planta departamento 5
48011 Bilbao (Vizcaya) spAin
Tel: +34 94 404 21 21
fax: +34 94 404 21 22
Rafael de muro, 1 - 1º dcha.
11201 - Algeciras
Tel: +34 94 404 21 21
fax: +34 94 404 21 22
Avda, federica montseni, 1 - 1º - 2ª
08390 montgat
Barcelona
Tel: +34 94 404 21 21
fax: +34 94 404 21 22
soutH KoReA
Consilium Marine korea Ltd
Room 1136, ocean Tower
760-2 Woo 1 dong
Haeundae gu
pusan
Tel: +82-51 740 58 71
fax: +82-51 740 58 70
unIteD ARAB eMIRAtes
Consilium Middle east (FZC)
B3/22, sAif Zone
p.o. Box 8018
sharjah, dubai
Tel: +971 6 55 70 740
fax: +971 6 55 70 741
Consilium Middle east
General Contracting llC
p.o. Box 131499
Hamdan street
suldan & suhail Alotaiba Building
Abu dhabi, uAe
Tel: +2 622 93 46
fax: +2 622 93 47
unIteD KInGDoM
Consilium Marine uk
unit 34, space Business Centre
Knight Road
me2 2Bf Rochester
Kent
Tel: +44-1268 417 745
fax: +44-1268 417 051
usA
Consilium Marine uS Inc.
4370 oaks Road
suite 721
fort lauderdale, fl 33314
Tel: +1-954 791 75 50
fax: +1-954 791 75 99
395 e 4TH sT
Apt. 36
long Beach, CA 90802
Tel: +1-562 726 1190
vIetnAM
Consilium Vietnam JSC
lK1A C4 Thang long int.
Village, dich Vong
Cau Giay, Hanoi
Tel: + 84 437 931 431
fax: + 84 437 931 432
R4-52, Hung phuoc 4,
phu my Hung,
Tan phong, dist 7
Ho Chi minh City
Tel: + 84 8 410 13 38
fax: + 84 8 410 13 39

västra Finnbodavägen 2-4
P.o. Box 5028
se-131 05 nacka
info@consilium.se
www.consilium.se