Annual Review 2011 - Axel Johnson International AB

Servicing industrial needs from
heavy-duty to high tech.
Annual Review 2011

1. Axel Johnson International in brief
2. CEO statement
4. Business groups overview
5. Five-year review
6. Business model
8. Strategy – the Group
9. Organic growth
10. Acquisitions
12. Expanding our service business
14. Our people
16. Sustainable business
17. Best performers 2011
18. The trainee programme
20. Our Values
22. House of brands
24. People – Products – Services – Expertise
26. Business group: AxLoad
30. Business group: AxIndustries
34. Business group: AxFlow
38. Business group: AxImage
42. Financial summary
44. Management and Board

Axel Johnson International in brief
Combining world-leading products with problem-solving
skills and a deep commitment to service
A genuine understanding of the operational requirements of our customers – and an appreciation
of the challenges they face – is the foundation for our business.
We combine problem-solving skills with world-leading brands and products within lifting and
lashing, fluid handling, bearings and transmissions, heavy-duty vehicle components and imaging
products. We create value through customised solutions, including application expertise,
installation, training, service and efficient logistics.
We are a group of strong and expanding market-leading niche companies, organised into four
business groups: AxLoad, AxIndustries, AxFlow and AxImage.
We are privately owned and are a part of the Axel Johnson group. As a private company, we
can think and act on a long-term basis. We operate all over Europe, with our Headquarters in
Stockholm, Sweden.
Axel Johnson group
Axfood
Axstores
Mekonomen
Axel Johnson
International
Martin & Servera
Svensk
BevakningsTjänst
Novax
BUSINESS GROUPS
AxLoad
AxIndustries
AxFlow
AxImage
Why we’re in business
It’s our mission to:
• Assist customers in increasing their profitability
by ensuring efficiency, reliability, quality and
safety in their processes.
Where we’re heading
It’s our vision to:
• Be the preferred partner for customers and
suppliers alike.
• Attract the best people.
• Be the obvious choice for entrepreneurs
considering selling their companies.
1

CEO statement
Reaping the benefits of focused
structures and stronger offerings
All in all, I’m very pleased with the group’s performance
in 2011. In spite of this being a year of many
challenges, all our business groups performed better
than in the previous year. Top-line growth for
the whole group was 8 percent, reaching SEK 5.7
billion. The profit performance was even more satisfactory,
growing by 44 percent to MSEK 276 after
financial items. Finally, return on capital employed
increased to 16 percent.
Across the group we have been successful in
improving our gross margins. This was one of the
priorities for the year, and I’m contented that we
were able to deliver on this. It reflects our continuous
efforts to evolve our product and service mix
towards value-added offerings, as well as a more
strategic approach to pricing that benefits larger
customers. Services continue to increase their
share of our total business, reaching MSEK 400.
Streamlining our supply chains and inventory management
was another priority area that contributed
to margin improvements. However, in this
field there is still more to do, and I expect further
advancement in 2012.
Pursuing a busy M&A agenda was another important
facet of 2011. In total, we acquired 7 companies,
adding a full-year turnover volume of MSEK
175, of which MSEK 80 was consolidated in the
accounts for 2011. In March 2012, we made the
largest acquisition in our history to date, when the
AxLoad business group acquired a majority stake in
Dutch Mennens Group. With sales of MEUR 83 and
420 employees, Dutch Mennens Group is the clear
market leader in the Benelux countries. As a result
of this acquisition AxLoad is now the largest European
supplier in the lifting and lashing market.
We have now gained momentum in acquiring
family companies in our fields of expertise, and we
expect to keep up – or even accelerate – the pace
of our acquired growth. Furthermore, integration
is notably smooth as a result of our entrepreneurial
values, with which the acquired companies can
easily identify.
It is obvious that we are now able to leverage our
strategy, as well as our management culture: giving
our leaders clear directions, but refraining from
interfering in the details. It is, if you like, a “hands
off” instead of a “hands on” approach to management.
This is a philosophy that emanates from our
owners: empowering and trusting management
teams to navigate within rather generous guidelines
to reach the targets we have agreed on. I know personally
how energising this philosophy is.
Looking at the various business groups, AxIndustries
reached an all time top-line high through organic
growth and a focused M&A programme. Organic
growth has been fuelled by strong demand from
the Nordic industry and we managed to acquire
three of four identified companies in Finland,
enabling us to roll out our bearings and transmissions
offering throughout the Nordics.
AxFlow also performed well, achieving a top-line
growth of 11 percent, in local currencies. Priority
market segments such as food, chemicals and petrochemicals
performed particularly well. AxFlow’s
business responds fairly late to economic cycles,
picking up later than the other groups but also
slowing down later. In 2011, AxFlow was successful
in rolling out its system business. It also acquired
service companies in Finland, Norway and the UK
to support its product and applications businesses.
The latest acquisition, Thames Valley Pumps in the
UK, has all of Heathrow Airport as a client.
Furthermore, AxLoad started to reap very nice
results in 2011, top and bottom-line, by creating
a more distinct structure, that consolidates the
offerings into three divisions – Forankra, Certex
and Haklift – while simultaneously streamlining
their processes. In 2011, Certex secured a major
service contract in wind power, covering serveral
markets. Certex also turned around its previously
troubled operation in the UK nicely. AxLoad had a
low M&A profile in 2011, but compensated beautifully
with the Mennens acquisition in March 2012.
AxImage was drastically restructured in 2010,
resulting in a turn-around in the Swedish operation,
especially with the B2B segments expanding.
In contrast, the Norwegian operation suffered
a loss for the year, largely due to our retail chain,
Elite Photo, which was hit by a brutally weakened
demand. We believe this to be a structural change
in demand and it requires a structural solution.
2

Geographically, the pattern from previous years
continued in 2011: demand in Northern Europe
was strong, while the economy in Southern
Europe remained soft.
The complex and partly contradictory cyclicality
of the various businesses in Axel Johnson International
is in fact a great advantage, hedging against
dramatic ups and downs in the economy and levelling
our total performance in any specific phase. For
one thing we have a fairly large after-sales operation,
which usually thrives in a soft economy. Servicing
the expanding offshore industry in Norway
is another growing segment almost unaffected by
short-term fluctuations in the economy.
Looking ahead, I’m not overly worried about a
downturn in the economy, partly because of this
innate balanced cyclicality in our group. In addition,
our entrepreneurial flexibility provides a remarkable
resilience to any change. True passion to do business
prevails in any climate, and I’m proud of our
people, who are so passionate about what they’re
doing, always acting upon business opportunities
offered. In 2012, we will boost this passion through
the Axel Johnson International Business School,
which will assist our people to grow further by
“managing myself, managing my team and managing
my business”.
This does not imply that 2012 will be a year without
complications and challenges. We are very
confident about the first half of the year, but less
so about the second. However, if bad turns to
worse, this also offer opportunities for a financially
healthy company like ours. The consolidation in
our markets will accelerate, and with a 14 percent
market share across all markets at the end of 2011
our potential to grow is considerable indeed.
Stockholm in March 2012
Mats R. Karlsson
CEO
3

Business groups overview
Business groups
AxLoad
– a leading European supplier of heavy lifting, anchoring and cargo
securing solutions.
AxLoad secures movement of goods across Europe through its lifting and
anchoring application technology and cargo securing solutions. The business
group comprises 25 companies and is split into three divisions, Certex,
Forankra and Haklift, active in over 30 countries all over Europe.
AxIndustries
– a full-service Nordic supplier of bearings and transmissions and
heavy-duty vehicle components.
AxIndustries is a leading supplier of products, solutions and after-market
services in three divisions – Bearings & Transmissions, Heavy-Duty Vehicle
Components and Industrial Products – active mainly in Sweden, Finland,
Denmark and Norway.
AxFlow
– a major European supplier of fluid handling solutions and services.
AxFlow offers a comprehensive range of the world’s best positive
displacement pumps, as well as process and application expertise.
The business group is active in close to 30 countries in Europe.
AxImage
– a supplier of cutting-edge Fujifilm high-tech graphic, medical and
photographic equipment.
AxImage is the exclusive distributor for the Japanese Fujifilm Corporation,
offering a complete product portfolio of digital solutions within medical
imaging, graphic arts and digital cameras/photo finishing. The business group
is active in Sweden and Norway.
4

Five-year review
Five-year review
Sales and profit
MSEK 2011 2010 2009 2008 2007
Sales 5,664 5,230 5,299 6,065 6,639
Cash flow from operating activities 274 262 399 145 414
Return on capital employed, % 16 12 6 16 19 1
Profit after financial items 276 192 110 284 511
1) Excl. effect of capital gains.
Sales and operating profit per business group
MSEK
Sales
2011
Sales
2010
Change
in %
Operating
profit 2011
Operating
profit 2010
Change
in %
AxLoad 2,455 2,169 13.2 152 106 43.4
AxIndustries 1,620 1,488 8.9 106 86 23.3
AxFlow 1,195 1,134 5.4 63 50 26.0
AxImage 400 443 -9.7 -5 -11 54.5
Parent company and eliminations -6 -4 -28 -19
Total 5,664 5,230 8.3 288 212 35.8
Number of employees
2011 2010 2009 2008 2007
Number of employees, average 2,053 1,946 2,025 2,167 1,843
Distribution of sales by product line
Distribution of sales by market
3
4
1
1. Lifting & lashing equipment 43%
2. Industrial components 29%
3. Flow equipment 21%
4. Imaging products 7%
2
3
1. EU countries 78%
2. Other Europe 19%
3. Outside Europe 3%
2
1
5

Business model
Creating value,
by ensuring efficiency
All our companies market and distribute high-end products and deliver solutions based
on technical expertise and a deep understanding of our customers’ business environments.
Sales are mostly direct and our customers are industrial, service and transportation
companies.
Global sourcing with local application
Representing world-leading brands, we offer the
best products and systems available in our fields
of expertise. As a comparatively big player with a
large range, we create value for suppliers and customers
alike, by efficiently linking the right products
and systems to the right customers.
Our companies source globally, helping us offer
highly competitive product portfolios. They design,
assemble and customise in their own workshops.
Keen understanding of customers’ needs
We add value by customising solutions, ensuring
efficiency, reliability, quality and safety in the customers’
operations. While technical expertise is
crucial, practical know-how is even more important.
Our offerings often include installation and
training, as well as after-sales support and other
service commitments.
We strive to combine the benefits of a large enterprise
at business group level with the flexibility and
drive of a small local business at company level. We
believe firmly in a local presence, close customer
relationships and a one-stop-shop philosophy.
Logistics service Technical service
Where we are heading
Technical solution
providers
Technical distributors
Wholesalers
Standard products
Special products
From technical
distributors…
• Focus on products and niche
segments.
• High technical skills.
• Spot market, one of many
suppliers.
... to technical
solution providers:
• Combining solid applications
experience with product
expertise.
• Resolving technical and
operational issues.
• In-depth customer relations,
with life-cycle commitments.
Our companies are continuously progressing up the value chain,
adding value through extended solutions and service commitments.
6

Products
• Latest, high-quality products
with best availability.
• Broad global sourcing from
leading brands and manufacturers,
enabling us to always offer the
right products or solutions.
People
• Solution- and action-oriented,
always with a customer focus.
• Highly committed problem solvers
with a passion for business.
• Reliable and trustworthy.
• Well educated and trained.
All companies in Axel Johnson
International conduct business according
to the same business model.
Added
Value
We combine these four
cornerstones to create profitable,
safe and problem-free solutions.
Services
• Service and repair.
• On-site installation,
maintenance and inspection.
• Engineering.
• In-house testing facilities
and service workshops.
• Training.
Expertise
• Niche expertise, ranging
from proven applications to
the latest innovations.
• Extensive technical knowhow,
allowing for sustainable
customised solutions.
7

Strategy – the Group
Growing by adding value to our
customers’ business
By truly understanding the industrial context, with its needs and challenges, we have a
unique ability to enhance the productivity of our industrial customers and to help solve
problems in their processes.
Long-term Goals
• Establish market leadership for all our companies
as Number 1 or 2 in their segment/geographic
market.
• Further expand our geographic footprint, helping
us to serve customers on a pan-European
basis.
• Build strong recognition for the group, its companies
and brands.
• Expand twice as fast as the market as a whole,
through a combination of organic growth and
acquisitions.
• Establish the strongest partner relationships in
our markets.
• Achieve the operational excellence of a large
enterprise, while keeping the innovation and
flexibility of a small, entrepreneurial business.
Financial Targets
• 15 percent annual return on capital employed
(ROCE), measured over a business cycle.
• 10 percent annual new sales growth, measured
over a business cycle.
Strategic Priorities
We will increasingly focus on:
• Customers and customer relationship initiatives.
• Solutions, applications and services, in addition
to products.
• Evolving our expertise and sharing it with our
customers.
• Active marketing and development of new distribution
channels.
• Building group synergies, such as IT, to share
knowledge and better serve our customers.
• Building a strong employer brand and superior
management of our human resources.
• People development initiatives.
8

Organic growth
Fuelled by continuous expansion
of our offerings
We are a group of expanding niche companies, which service various needs of industrial
and transportation businesses all over Europe. Organic growth is our basic strategy – so
most of our expansion over the last couple of years has been organically driven, through
our business groups entering new markets and new market segments.
Forward integration: a key strategy
We promote organic growth in all our companies
through intensified sales penetration, extended
geographic coverage, continuous fine-tuning of
our product portfolio and service expansion. Forward
integration – a gradual shift from products
to solutions and services – has successfully contributed
to increased sales, improved margins and
enhanced customer loyalty.
Finding ways to expand our service offering is a
priority for all our groups and companies and we
have devised numerous techniques to help our
companies develop their offerings further in this
direction. To provide customer service you have to
be there! Maintaining a local presence may be an
expensive strategy, but it pays off.
Building repeat business is essential to organic
growth. And that is only possible by earning customer
trust and building strong customer relationships.
We work hard to establish true partnerships
with our customers for mutual long-term commitment
and success.
Growth strategies – Services
Low Scope and value High
“Must have”
services
Services to
secure spare
part business
Services as
differentiator to
product business
Services
as a business
on its own
Expanding the service offering is
a key strategy, not only for volume
growth but also for customer retention
and margin growth.
Low Development High
9

Acquisitions
Pursuing a focused acquisition agenda
To achieve our growth targets and better serve our customers, we will continue to
pursue a focused acquisition programme.
Over the past five years, the group has acquired
33 businesses corresponding to a total sales volume
exceeding MSEK 1,500. Although organic
growth is our basic strategy, we will also continue
to expand through acquisitions in order to support
our strategies and strengthen our offering.
All our companies are, or strive to be, market leaders
(Number 1 or 2) in their segment, or in their
geographic markets. Throughout Europe, there
is still considerable potential for expansion and
increased market share. It is our aim to grow twice
as fast as the market as a whole through a combination
of organic growth and acquisitions, to
build strong brand recognition and to establish the
strongest partner relationships in our market.
We take an active role
In addition to expanding our geographic coverage
and increasing our market penetration, we
will also continue to acquire service companies.
Another rationale for pursuing an active acquisition
strategy is the fact that we operate in fragmented
industries – and we want to take an active
role in consolidating such industries.
We look for companies in the business-to-business
sector, with a strong market position in their segment
or niche. Acquisition candidates should have
a matching or complementary business proposition
or a geographic location that works well with
our present structure. Prospective acquisitions are
evaluated according to their business activities,
track record, growth potential and management.
Looking for family companies with
the entrepreneur still on board
Our owner philosophy is based on majority ownership.
In exchange for a majority stake in a business,
we offer a dynamic and financially solid growth
platform, combined with a decentralised management
model and an entrepreneurial business environment.
We are particularly interested in family companies
that are entrepreneurially driven – ideally with
the entrepreneur still in charge. Merging with
our group leaves ample room for independence.
Our financial strength enables us to continuously
examine new opportunities for growth through
acquisitions. We never consider exit options when
judging an acquisition candidate.
What we Look for
• Entrepreneurially and profitability-driven
B2B companies.
• Group relevance through a matching or complementary
business proposition or geography.
• Strong market position within segment or
niche.
• Superior expertise in their field.
What we Offer
• Entrepreneurial business culture.
• Strong financial platform.
• Decentralised management model with a high
degree of freedom to continue developing the
company.
• Supply-chain expertise.
• Group-wide best practise sharing.
• HR/Management development.
10

Expanding our geographic footprint
Over the past five years, Axel Johnson International has acquired 33 businesses, operating
in ten European countries and corresponding to a total sales volume exceeding
MSEK 1,500.
Acquired growth
MSEK 1,500
Kompetanseteknikk (NO)
Inkalift (FI & EE)
Tekniikka Center (FI)
Chemo-Invest Specialpumpar (SE)
TM-Palvelu (FI)
Norpump (NO)
Thames Valley Pumps (UK)
Olcoven (FR & ES)
Codeprin (FR)
Tauno Tasanto (FI)
Eltjänst Elektromekaniska (SE)
CombiFlow (IRL)
Hendriks Flevo (NL)
Halmstad El & Pump (SE)
TAPS (UK)
Certex Lifting (UK)
Peter Harbo (DK)
Erland Nilsson International Components (SE)
Elektro-Dynamo (SE)
Porin Lakeri (FI)
LVD Lastvagnsdelar (SE)
Industriprodukter i Karlstad (SE)
Bran+Luebbe (NO)
ACK (FR) + Ancra (ES)
Hammerfest redskapsdepot (NO)
Safe Load (SE)
Trailereffekter (SE)
Sverull (SE)
TransEko (SE)
Motovario (SE)
2007 2011
11

Expanding our service business
Delivering on our service strategy
In late 2011, AxFlow in Great Britain finalised the
acquisition of Thames Valley Pumps, based in Windsor,
Berkshire. This is one of three acquisitions made
by AxFlow during the year, in line with the strategy to
expand into the service business.
Three years back, AxFlow in Great Britain acquired
its first service-oriented company – T.A.P.S. in the
north of England, a business specialising in repairing
and supplying pumps. With a strong business concept
and a good geographic location, T.A.P.S. quickly
proved to be a successful addition to AxFlow’s operation.
“AxFlow is a brand-oriented business, meaning that
we always carry and distribute leading brands. This
is, of course, a key strength for us. But it also meant
that – prior to the T.A.P.S. take-over – we only repaired
our own pumps. Now, we can repair any pump and
serve our customers even better,” says AxFlow Great
Britain’s Managing Director, Tony Peters.
With a strong position in the north of England,
AxFlow also needed to strengthen its service offering
in the south, not least around the London area.
Understandably, a local presence is a prerequisite
when seeking growth in the service sector.
“We faced two alternatives: either building from
scratch – which we did when we opened a small industrial
unit in Durham to provide local customers with
local service – or acquiring,” explains Tony Peters.
A good match
Investigations showed that Thames Valley Pumps,
with a GBP 3 million business and 22 employees,
would complement AxFlow well.
“They are a supplier-independent seller, have an excellent
skill set enabling them to repair any pump and
are strategically perfectly located in the Windsor area.
Also, they are active mainly in facilities management
– a market sector we had previously not focused on.”
Thames Valley Pumps has a strong position in water
services, operating, for example, in airports, where
de-icing units, pumps for storm water from runways
and handling fluid systems in terminals are integral
parts of the offering. Facilities management is
about on-site repair, so the acquisition also improves
AxFlow’s ability in this area.
“It made great sense to bring the two companies
together and our customers have already responded
positively. AxFlow now has the engineering skill to
repair almost any type of pump, both at the Windsor
base and at our customers’ premises. In short, we
are better equipped to provide our customers with an
overall commitment,” says Tony Peters.
Thames Valley Pumps’ customers have also shown confidence
in the merger, because the company is now part
of an international group. In line with the Axel Johnson
International way of doing business, the existing
management team of Thames Valley Pumps remains
in position.
Part of a set strategy
The acquisition of Thames Valley Pumps reflects the
AxFlow group’s strategy to both enhance and protect
its pump business, by expanding into the service
business. A long-term commitment to provide a local
pump service throughout the country is a cornerstone
of this ambition.
“Building strong relationships and confidence in customers
requires a mix of both supplying and servicing
pumps,” says Tony Peters.
And he concludes that: “As a leading supplier of
pumps in the Great Britain, it is essential that we keep
pace with the changing needs of our customers who
wish to single-source both pumps and pump servicing.
The highly skilled engineering resources built up
by Thames Valley Pumps over 13 years will enable us
to further develop our service support facilities to customers
throughout the south.”
During the year, the AxFlow group made another
two acquisitions to support the strategy of expanding
its engineering and service offer. In Norway, AxFlow
acquired the Oslo-based Norpump – experts in the
delivery of basic pumps and complete pump installations.
AxFlow in Helsinki, Finland, acquired TM-
Palvelu, a well-established pump service and piping
contractor.
About Thames Valley Pumps
Thames Valley Pumps is a provider of electro-mechanical
services to a wide range of industries specialising in fluid
and air movement. The company has the facilities to supply,
install, service and maintain all types and makes of pumps
and plant equipment, related to air and fluid handling.
Annual turnover: Approx. GBP 3 million
Number of employees: 22

Our people
Securing skills to promote business
Axel Johnson International is all about people. Our vision establishes that we strive to
attract the best people. This defines our human resources strategy as a key to our overall
business strategy.
The main objective of our human resources effort
is to secure our skills supply by attracting and
retaining competent employees, in order to support
the group’s business ambitions.
2011 was an eventful year marked by the full implementation
of our human resources strategy, the
launch of the Axel Johnson International Business
School and the second trainee programme – to
highlight a few of our key activities.
Strategic activities in 2011
A tailored and extensive programme
To ensure a structured process for our human
resources effort, Axel Johnson International has
initiated a tailored programme that will be implemented
across the organisation. The programme
identifies key initiatives to be followed up on a
yearly basis, including a goal and performance
review, leadership training, an employee satisfaction
survey, educational initiatives and succession
planning.
Leaders for success – today and tomorrow
Strong leaders are vital in a people-focused and
decentralised organisation. To ensure strong leadership,
we strive to create the best possible conditions
for our leaders. This includes developing
tools and models and identifying best practices,
as well as offering leadership training and support.
In 2011, we also formulated a leadership philosophy
that clarifies Axel Johnson International’s view
on leadership:
“We place great trust in our employees. They have
the knowledge, skills and ideas needed to develop
our businesses. We believe in decentralised leadership,
combined with an extended co-operation
within the group. The connecting thread is the joy,
the driving force to change, combined with building
and developing sustainable businesses over time
with our customers. As leaders in Axel Johnson
International, we are role models.”
The Axel Johnson International
Business School
In 2011, a major initiative was taken to ensure
strong leadership in the group through the formation
of the Axel Johnson International Business
School. The employee satisfaction survey conducted
in 2010/2011, identified areas with potential
for improvement. These areas, along with our business
challenges and culture, form the basis of the
programme’s content.
The Business School was introduced in December
2011 and will be rolled out during 2012. Offering
a broad and cohesive agenda of educational activities,
the three overall goals are: to build our culture,
actualise our values and develop our leaders.
The training focuses on our business and profitability
in general, as well as working on the personal
aspects of leadership.
The trainee programme
In September 2011, the second group of trainees
enrolled in our 13-month programme.
14

We place great trust in
our employees. They have
the knowledge, skills and
ideas needed to develop
our businesses.
Q&A with Anki Kling, Director Human Resources
Can you comment on the
development in 2011
It was an intensive year. We started the implementation
of our human resources strategy and there are
several new exciting initiatives in the pipeline for the
years to come.
What will be in focus in 2012
Continuing the implementation of the human
resources strategy, including succession planning.
The leadership programme will carry on and the
Business School will kick-start. Another focus area
will be the trainee programme, not only with regards
to the new trainees, but also in terms of following up
on the previous groups, who are now working in permanent
positions throughout our organisation.
15

Sustainable business
Building a profitable business
with CSR
Sustainable and responsible business is a fundamental principle of Axel Johnson International.
We believe that the value we create by offering high-quality products and
solutions, energy-efficient products and safe working conditions forms a platform
to deliver on our environmental and social agenda. Our work with corporate social
responsibility is thus an integral part of our company philosophy.
To reduce our environmental impact, we focus
on four areas: transportation, energy consumption,
energy-efficient offerings and waste management.
Yearly targets are set and followed up,
assuring our continuous improvement in several
areas.
Part of the offering
Throughout our highly decentralised organisation,
many activities are continuously being conducted.
At ABKATI, a leading Swedish distributor of components
and spare parts for heavy-duty vehicles,
integrated corporate social responsibility is definitely
on the agenda.
“We always consider the CSR perspective when
creating a customer offering. This means, among
other things, that we look and push for products
that will reduce the environmental impact in our
own and in our customers’ processes,” says Christian
Celsing, head of CSR at ABKATI. “Let me give
you an example,” he continues. “There is a rapidly
escalating customer demand to reduce both power
and fuel consumption and, as heavy-duty vehicles
consist of more and more electronics, the demand
for additional electricity power presents opportunities
for new lightweight and low-energy solutions.
This knowledge is a competitive advantage
for us. When a customer wants to replace old lighting,
we base our offering on a sustainable solution
that will reduce weight and minimise the need for
extra battery power, such as choosing LED lighting
technology instead of traditional halogen lights or
composites instead of metal. This might sound very
simple but we know that every little detail counts,
such as a few grams of weight or extending the
product life by a couple of months.”
ABKATI works hard to involve its suppliers as well.
Christian Celsing and his colleagues visit and evaluate
the company’s suppliers on a yearly schedule
and all suppliers have to follow the Axel Johnson
International supplier code of conduct.
“Working with corporate social responsibility
never stops. You can always improve. Right now
we are in the final stage of certifying all our management
systems, including quality management
system ISO 9001, environmental management system
14001 and occupational health and safety
management system OHSAS 18001,” concludes
Christian.
ABKATI is part of the AxIndustries business
group and a leading Swedish distributor of
components and spare parts for heavy-duty
vehicles. The company has experienced a rapidly
escalating customer demand for lightweight
and low-energy solutions.
16

Best perfomers 2011
Axel Johnson International
– Best performers of 2011
Axel Johnson International recognised its best employees at the Sales of the Year Awards.
This is the company’s way of recognising diligent employees, whose efforts to create
outstanding customer value make Axel Johnson International a successful company.
Salesman of the Year
Masoud Jadidi, Product & Account Manager Medical
Systems at Fujifilm, received the award for Salesman
of the Year. After seven years as an application specialist
and two years spent in sales, Masoud is a true expert
in selling the mobile X-ray, FCR Go – achieving more
than 100 percent over target and capturing a market
share of 75 percent for mobile X-ray equipment against
tough competition. Through very hard work, a passion
for business, road shows and seminars at the major hospitals,
Masoud creates trust at all levels.
Sales Manager
of the Year
Urban Vester, Sales Manager at ABKATI received the
award for Sales Manager of the Year. In 2011, ABKATI
launched a new generation of LED-lighting from ABL for
the heavy-duty vehicle market in Sweden. Urban’s efforts
to get the entire sales organisation working toward common
targets has resulted in many new accounts, including
Volvo and Scania. The results have reached and surpassed
sales targets, as well as capturing a market share
of 30 percent in one year.
Sales Team of the Year
The Erling Haug Offshore Sales Team, made up of Einar Osen, Edvin Torkildsen, Paal Haug Jenssen, Alf Magne
Røbech and Øystein Hestvik, received the award for Sales Team of the Year. They have a solid record of long-term
customer retention, as well as a talent for attracting new customers. The team is clearly recognised by customers for
their excellence in offering high quality, innovative and safe solutions. Furthermore, the sales team has evolved during
the year. They have found ways to utilise each other’s expertise and shown good team co-operation with both customers
and suppliers. The result – breaking MEUR 10 in sales and more than 50 percent over target.
17

The trainee programme
An organisation full of opportunities
Great career prospects, an entrepreneurial spirit and
the opportunity to make a difference: Levent Duran
is a current trainee, while Camilla Penttilä is a graduated
trainee, now working in a permanent position
within the group. Both have already seen many parts
of Axel Johnson International.
“I particularly wanted to enroll in a trainee programme
that would quickly allow me to get a comprehensive
view of the whole organisation,” says Levent,
explaining his reasons for joining Axel Johnson International.
“Axel Johnson International appeared to be
a company that would challenge me with responsibilities
right away. I appreciate the fact that the group so
explicitly states its ambition to be the market leader in
its niche markets. For me, this indicates energy and a
clear direction.”
Levent is one of eight trainees who entered the programme
in the autumn of 2011. He is an industrial
engineering and management graduate from the
Royal Institute of Technology in Stockholm and a business
graduate from Stockholm University. As a trainee
in the newly established, “supply chain management”
specialist area, he is currently at AxIndustries and did
his first placement with the bearings provider Nomo.
Camilla started as a trainee in the autumn of 2010,
with a focus on Sales and Marketing. She completed
her first placement with Fujifilm medical system –
which was also her “home” in the group. She moved on
to Certex, within AxLoad, for her second six-month
placement, before returning to Fujifilm, where she
now works in marketing.
“My job today is about positioning Fujifilm as a company,
not least through directed marketing campaigns
and web communication,” says Camilla, who
studied industrial engineering and management at
Linköping University.
“What differentiates Axel Johnson International is
that it is a large group, but it is made up of lots of small
businesses. This means that I have a clear and welldefined
role and my contribution has a visible impact,
which may be less apparent in large organisations.
And, of course, the fact that we are a family-owned
business translates directly into long-term thinking
and acting: this is really noticeable. Profitability
is always a must – but in this company, we can allow
investments to take some time to show results.”
levent agrees:
“As a trainee, I have already been given tasks in the
core of Nomo’s business, with – for example – responsibility
for a product group. So you really have the
opportunity to challenge yourself and make a difference.
In addition, I have gained insights into several
other of the group’s companies on different levels, from
operational to strategic perspectives,” he says.
Camilla elaborates:
“Curiosity and the power of initiative are rewarded:
it is up to you which experiences you will get and how
your career path will be formed. During my trainee
period, I think I visited around ten companies. And,
since we have such close contacts with the other trainees,
I feel that I know a lot about many other companies
“The trainees at Axel
Johnson International
are important catalysts
for sharing knowledge
and strengthening the
culture throughout the
group.”
Camilla Penttilä, former trainee, today in a
permanent position at Fujifilm and Levent
Duran, trainee at Nomo within AxIndustries.

William Petersson Frank (AxLoad), Frano Cetinic (AxImage), Karolin Larsson (AxImage), Therese
Råvik (AxLoad), Kristina Lebeck (AxLoad), Jonas Widerberg (AxFlow), Johanna Gustafsson
(AxIndustries) and Levent Duran (AxIndustries).
in the group that I have never worked with. Levent’s
current company, Nomo, is one such example”.
The trainees at Axel Johnson International are important
catalysts for sharing knowledge and strengthening
the culture throughout the group.
“It is a win-win situation to have many contacts
throughout the organisation,” says Camilla. “Before
I started the programme, I had heard that this was a
company with a great sense of community. Having
met with so many people, I can only agree. You can
really feel the entrepreneurial spirit and that this is
a family-owned business. The atmosphere is collegial
and the people are skilled, open and social, which
has allowed me to build many strong relationships. In
my everyday work, this means that I can get support
whenever I need it from the right person in each unique
situation. And, in terms of our future careers, we are, of
course, in an advantageous situation.”
The collegial and family-like atmosphere is clearly
transmitted to the trainees.
“I really thrive here,” says Levent. “So far, I have had a
very instructive and fun time with many new experiences.
We have also become good friends within the group
of trainees: we even spend our spare time together!”
Camilla now plans to focus wholeheartedly on Fujifilm
for the next few years and has not yet started
thinking about her next step within Axel Johnson
International. As for Levent, he was offered a sixmonth
placement at Forankra in Gothenburg shortly
after this interview.

Our Values
Core values
Our values permeate everything we do, from internal work to meetings with external
stakeholders, such as customers and suppliers.
Making thi
Good to w
Far-sigh
We drive sustainable change. We have a
preference for long-term commitments with the
intention of staying in and serving the market.
20

We have a passion for business;
we challenge, we take the initiative
and we take on the responsibility
for delivering what we promise.
ngs happen!
ork with!
ted!
We inspire confidence through a
respect for people and relationships.
21

House of brands
A very strong “brandscape”
Our group is a group of strong brands and our main strategy is to retain the brand names
of the companies we acquire in order to leverage the brand value built up over the years.
LIFTING SERVICE TEST
INDUSTRY MARINE OFFSHORE FISHING
S E R V I C E S
22

People – Products – Services – Expertise
Representing a wealth of skills, know-how and
experiences, our 2,000 employees are deeply
committed to solving our customers’ problems
and delivering on our promises.
24

By applying their expertise to world-leading
products in the various fields in which we
operate, we can provide our customers with
world-class solutions and applications.
25

Vinjett Every day, all over the world, wire rope, chain tackles, slings, lashings and other
AxLoad products and solutions are deployed in ports and airports, on ships and on
the road, on offshore platforms and wind turbines – as well as in various industrial
applications – ensuring safe and efficient working environments. Global trade is
growing continuously. Securing movement is our contribution to safety and efficiency.
AxLoad
Improving safety
by securing movement
26

Business group – AxLoad
A year of strong organic growth
2011 turned out even better than we anticipated when exiting 2010. In our main market
segments and regions, demand picked up quickly.
The energy sector recovered strongly with heavy
investment activity in the offshore sector, fuelled
further by a significant price hike in crude oil, especially
during the first months of the year when
unrest erupted in the Middle East and North
Africa. The wind power industry also expanded,
with increasing demand from larger customers for
pan-European services – which was favourable for
AxLoad with our strong cross-European footprint.
Despite signs of a slowdown in the last couple of
months of 2011, global trade also had a good year
overall, which supported activity in the transportation
industry. In addition, the marine segment performed
well. Growth in 2011 was mainly organic.
All in all, AxLoad enjoyed a very good year.
We have a vast know-how in securing cargo. And
we will increasingly offer this expertise in our service
commitments, including education and training
in safe loading.
2011 was a time when the new organisation
became effective and new leaders arrived in key
positions. An efficient co-operative structure was
also put in place – and started to deliver.
Industry trends
Securing movement of cargo and merchandise,
people, equipment and other strategic assets is a
major concern for enterprises in the industry segments
that we serve. In addition, the need for corporate
responsibility increases the importance of
ensuring accident-free, safe and resource-efficient
operations. The trend towards increased safety is
driven by legislative requirements, as well as by
commercial needs. Stricter laws and regulations
will continue to drive new working methods and
processes geared towards safety. EU regulations
and industry standards are interpreted differently
in different markets. We have chosen to see this as
a business opportunity, turning guidance on these
issues into a growing service area.
Increasingly, quality and safety demands are merging.
In the lifting area, we assume a life-cycle
responsibility for the products and applications
that we sell, including service elements, such as
inspection, certification and training. In the transportation
sector, there is also an increased focus
on safety – protecting people and cargo and
ensuring safe roads.
AxLoad is Europe’s leading operator in lifting, anchoring
and cargo securing in the energy and marine sectors,
heavy industry and transportation. We address the
market through 25 companies and 50 operational units,
grouped into three divisions:
CERTEX offers advanced solutions along with the corresponding
high-end lifting and anchoring products
to end-market customers in the industry, energy and
marine sectors. Our service applications range from servicing
cranes, elevators, shipyards and wind turbines to
onshore and offshore oil and gas operators, as well as the
mining and steel industries. We have a presence in the
Nordics, the Baltic region, Russia, Germany and the UK.
FORANKRA offers high-end, flexible cargo securing
standardised products and tailored solutions to endmarket
segments within the road, air and sea transportation
sectors. We are mainly active in Scandinavia,
France, Spain and Poland and co-operate closely with
our partner company, Allsafe Jungfalk, in Germany.
HAKLIFT focuses on cost-effective European wholesale
distribution of a quality-assured, wide assortment of lifting,
lashing and material handling products – as well as a
high level of service from our extensive central warehouse
in Finland. Our market focus is geared towards Finland,
the Baltic region, Russia and Eastern Europe.
27

Business group – AxLoad
Strategic activities in 2011
To help us better serve our customers in “securing
movement”, our strategic focus has centred around
repositioning AxLoad as a pan-European applications
provider throughout our various fields of
expertise. All three divisions within AxLoad have successfully
implemented new corporate identities as a
key element of this strategy.
• Being an applications provider highlights the services
we offer. Especially in Certex – but also increasingly
in Forankra – we have expanded our range of
services to include after-sales support and training.
• A central warehouse, with a preferred supplier in
China, was set up to achieve inventory efficiency
and product availability.
• M&A activity was low in 2011. Kompetanseteknikk
in Norway was acquired by Certex in the beginning
of the year, while Inkalift was acquired by Haklift
and Certex Estonia in the second quarter of 2011
– leading to increased market shares in the Finnish
market. However, we scanned the market carefully
for potential acquisition candidates, and in March
2012, we pursued the acquisition of a majority
stake in Dutch Mennens Group from De Hoge
Dennen Capital, a privately held investment company.
With sales amounting to MEUR 83 in 2011
and 420 employees, Mennens is the leading provider
of steel wire rope, cranes, lifting products
and related services in the Benelux region, with its
important ports and heavy industry. Following the
acquisition, AxLoad is now the largest European
supplier in the lifting and lashing market.
Sales and operating profit, MSEK Sales by segments, %
3,000
2,000
1,000
0
07
08
09
10
11
300
200
100
0
Sales
Operating profit
4
3
5
2
1
1. Industry 29%
2. Energy 23%
3. Transportation 22%
4. Trade resellers 15%
5. Marine 11%
Q&A with President Martin Malmvik
How was 2011 for AxLoad
All in all, 2011 was a good year for AxLoad, with
full implementation of all strategic actions, resulting
in strong organic growth. Net sales amounted
to MSEK 2,455 (2,169) and operating profit was
MSEK 152 (106).
What will you focus on in 2012
The investments in people and infrastructure that we
implemented in 2011 will assure both extra leverage
and resilience. Going forward, we believe we are well
positioned to take an active part in the market consolidation
that will continue, expanding our pan-European
footprint further.
28

AxLoad
Safety and quality in focus
The challenge
Equipping a large, specialised vessel offshore for new
tasks and missions is always a challenge. Technip is a
global provider of project management, engineering and
construction for the oil and gas industry. In early 2011,
Technip’s Norwegian subsidiary, Technip Norway AS,
was contracted to equip the large construction vessel
“Normand Pioneer”, owned by the Norwegian shipping
company Solstad Offshore ASA.
Having previously transported diving equipment to
the Barents Sea to assist attempts to locate the Russian
submarine in the area, the 95m-long and 24m-wide
“Normand Pioneer” was now to be re-equipped in
order to fulfil its upcoming mission of towing and
installing subsea equipment for the Goliath field development.
The Goliath field is located 52 sea miles north
of the Norwegian coast, with Hammerfest as the nearest
supply base and mobilisation site. The Barents Sea
area is currently under development, with several additional
development projects for other fields now in the
pipeline.
Technip contacted Erling Haug AS to assist with the
supply of necessary rigging equipment, supervision,
and installations on board the vessel.
The solution
The task would prove to be full of challenges. The
equipment to be towed was large and heavy, and most
of the rigging equipment had to be tailor designed and
manufactured uniquely for the case.
However, despite the initial project being very limited,
Erling Haug’s responsibilities quickly expanded
and the company soon supported Technip in a number
of ways. Erling Haug would end up both providing
equipment for the vessel and assisting in the installation
of different rigging hardware on board. This furnishing
included towing equipment for the on-board
crane, with a large amount of tailor-made components
being provided to make the tow and installation
of the subsea equipment secure and efficient.
By the end of 2011, Technip had contracted Erling Haug
for a range of other projects in the area, scheduled for an
installation period of five to ten years.
Value created
To complete a complicated task like this, the ability to
meet the highest quality and security demands within
the given time frame and budget is of great value.
Technip chose an AxLoad company as its contractor
because of its focus on quality and the extensive
relationships AxLoad has established throughout the
industry. Safety, health and security are important
factors in any large project, and with a strong focus on
quality assurance, Erling Haug AS managed to create
confidence and become a complete solutions provider
for Technip. The project was also successful due to the
competent supplier base that Erling Haug has built up
during its many years in the demanding industry, and
the highly professional project management by Technip.
No project of this type is the same as the previous
one. It is therefore important to have the know-how to
enable tailor-made solutions under a very strict time
frame. Unnecessary downtime is not an option.

Vinjett AxIndustries is a full-service Nordic supplier of bearings and transmissions and
heavy-duty vehicle components and creates value for customers and suppliers by
bringing structure and efficiency to the supply chain through a combination of
access to leading technologies and highly committed service.
AxIndustries
Solutions and service as
a competitive advantage
30

Business group – AxIndustries
All time high for AxIndustries in 2011
AxIndustries can look back at 2011 as a year with record sales and profitability.
Customers continued to make investments in their operations in spite of the ongoing
economic uncertainty in the markets, resulting in a more positive development for
AxIndustries.
During 2011, heavy-duty vehicles, bearings and
transmissions were favorable markets in which to
operate and grow. The Swedish market was the
main driver in the Nordic region, but other countries
such as Finland, Denmark and Norway also
showed stable development in 2011. AxIndustries’
key advantages are our mix of customers from
global players to medium and small-sized companies,
focusing on after-market sales.
Growing market shares
During 2011, we grew our share of the accessible
spare parts market for heavy-duty vehicles.
In bearings and transmissions, we also grew our
share, both organically and through the acquisition
of Tekniikka Center in Finland. Furthermore,
we had some breakthroughs in industrial production,
especially in the areas of leisure boat and
window manufacturing. In both cases, we have
worked together with our customers to change
their assembly methods by introducing new procedures
related to gluing different materials
together. These innovations improved the strength
and durability of the final products, as well as
reduced the cost of manufacturing.
Customers look for complete partners
The market, especially the heavy-duty vehicle parts
industry, is seeing new European players entering
the Swedish arena. AxIndustries understands
that price is only one parameter on which to build
lasting customer relations. Increasingly, availability
and being close to the customer, coupled with
problem-solving skills, are key factors that create
added value.
Our customers are increasingly demanding added
value, such as services and technical expertise. To
meet these needs, we have continued to improve
our service level performance. We have extended
our product portfolio and improved our delivery
accuracy. We are also further strengthening our
technical organisations and are continuously training
our employees at all levels. As a complete partners,
we can help our customers further lower
their total costs and shorten delivery times when
they need to reduce their number of suppliers.
AxIndustries addresses the market through nine niche
companies, grouped into three divisions:
BEARINGS & TRANSMISSIONS: Offers customised
products and services to small and medium-sized companies,
as well as to global industry leaders, such as ABB,
Sandvik, SSAB and Tetra Pak. The main product groups
are roller bearings and mechanical transmission components,
brought to the market by the companies Elektro
Dynamo, Jens S, Nomo and Sverull.
HEAVY-DUTY VEHICLE COMPONENTS: Offers a
broad range of components and services for customers
in after-market segments, mainly for trucks and trailers,
forestry and agricultural vehicles. The offering is brought
to the market through the companies ABKATI, LVD and
Trailereffekter.
INDUSTRIAL PRODUCTS: Offers distribution of
technical products for the manufacturing industry,
OEMs and after-market customers in the Nordic countries.
Filters, gas springs and adhesives are the primary
products brought to the market by Eigenbrodt. The automotive
and telecom industries are served by Sundquist
Components with high-performance products in polymer
materials that seal, absorb, protect and insulate in
demanding environments.
31

Business group – AxIndustries
Strategic activities in 2011
In 2011, we focused on a number of strategic
activities. We cut lead times for our customers in
the manufacturing sector and worked on providing
solutions further up the value chain, where our
growth potential lies. During 2011, we also:
• Worked on developing our logistics by upgrading
our IT infrastructure.
• Focused on sharpening our employees’ technical
sales skills.
• Invested in growth in new and existing markets.
• Completed the acquisition of Finnish Tekniikka
Center. This strategic acquisition strengthens
AxIndustries’ position in Finland and helps us to
expand our market coverage and increase our
service capacity in the field of bearings and transmissions.
• Pursued strategies for smart purchasing, better
pricing and sales structures.
• Improved gross margins.
Sales and operating profit, MSEK Sales by segments, %
1,800
1,200
180
120
3
4
1
1. General industry 50%
2. Transport industry 34%
3. Heavy industry 7%
4. Other 9%
600
60
2
Sales
0
07
08
09
10
11
0
Operating profit
Q&A with President Peter Lindquist
How was 2011 for AxIndustries
2011 was a fantastic year for AxIndustries in terms
of sales and profitability. Sales volumes increased for
most of our companies, with total net sales amounting
to MSEK 1,620 (1,488), while our operating profit
was MSEK 106 (86). During the year, our customers
continued to invest in new equipment and several
AxIndustries companies were involved in new product
development projects.
What will you focus on in 2012
Going forward, we see a market full of opportunities.
During 2012, we will continue to open up new sales
offices in Sweden, making sure we stay close to our customers.
We will continue our technical training programme
for customers and employees. And we will
carry on upgrading and developing our product portfolio.
Acquisitions will remain one of our priorities.
Overall, we believe that we will continue to grow our
business in 2012 – but at a lower rate than in 2011.
32

AxIndustries
Securing continuous production
The challenge
Rexcell Tissue & Airlaid delivers materials based on
tissue and airlaid technologies. One of the company’s
production sites faced technical challenges at three of
its mills. One problem was the short bearing life due
to high belt tension and that the installed belt-type
often failed. Fitting a replacement meant hours of
production shutdown.
The solution
Sverull suggested that the belt be replaced with a synchronous
belt transmission with integrated safety coupling
that could transmit higher power, reducing the
loads on the shaft due to decreased belt tension. A belt
cover was also installed and the motor was placed on a
hydraulic motor shelf.
Value created
After nine months in production, no unplanned stops
have occurred and the bearings show no signs of
stress. Furthermore, the hours spent on maintenance
work have been notably reduced. Production loss and
inventory costs have also been cut. In total, the annual
savings add up to MSEK 1.

AxFlow delivers high-performance, cost-efficient and safe fluid handling
equipment from world-leading manufacturers, along with solutions tailored
to customers’ specific needs, including after-sales services.
AxFlow
Securing the flow

Business group – AxFlow
Strengthening our market position
2011 started off on a positive note. But as the debt crisis hit some European countries
harder than others, market development turned out to be quite inconsistent between
different countries and customer segments. Demand picked up in Northern Europe,
while the Southern European markets remained weak. As a consequence, investment
levels varied heavily between markets.
The market for AxFlow showed good growth in
2011. We strengthened our market position through
new applications and service initiatives, as well as
through active sales efforts, including targeted sales
campaigns. We experienced particularly strong
growth in the food, chemical and petrochemical
segments, and we are the Number 1 distributor of
positive displacement pumps in the EU.
Industry trends
There are certain prevailing changes in customer
behaviour that need to be highlighted. Most important
is the fact that customers increasingly seek to
reduce their list of preferred suppliers in order to
achieve volume benefits and lower the costs of tendering.
They seek partners who have the ability to
deal with the complete area of fluid handling. One
consequence of this is that customers also prefer
suppliers with the capability to service large geographic
areas. As a pan-European company, AxFlow
is well positioned to support these customers, not
least through the many supplementary acquisitions
we have made in recent years. In addition, our distribution
centre, based in the Netherlands, is a strategic
hub that serves us well in meeting the needs of pan-
European customers. For example, if a customer has
a disruption in its production process, we are able
to ship pumps, associated equipment and the necessary
expertise to get everything up and running
again within 48 hours – anywhere in Europe.
Yet another key driver in the European process
industry is the clear shift in demand away from
products to complete systems and after-market
service – in other words, as near to turnkey solutions
as possible. The process industries demand
solutions that minimise disruptions. Secure fluidity
applications are an integral and critical part of the
whole production system. In 2010, we established
AxFlow Systems in response to this development
and to further support our customers’ production
efficiency. It is a centre for systems and systems
engineering, in which we concentrate our expertise,
providing design and construction.
Increasingly, long-term, cost-effective solutions that
save energy and reduce the impact on the environment
are being actively sought. This driver works in
our favour, thanks to our extensive solutions knowledge
and our ability to leverage the benefits of a
wide geographic presence.
AxFlow is a major European supplier of fluid handling
solutions and services to the process industry. With operations
in 23 countries, we move, measure and dispense
difficult and high-viscous liquids. We supply precisionengineered
positive displacement pumps and systems in
applications and solutions that respond to high demands
on efficiency, reliability and safety.
Over the last couple of years, we have developed from
being a hub between fluid handling manufacturers and
the European process industry, to becoming a partner,
securing fluid technology in operation. Our customers
are in the chemical, petrochemical, food and beverage,
water and waste water, building, ceramics, pharmaceuticals,
pulp and paper industries.
35

Business group – AxFlow
Strategic activities in 2011
• AxFlow completed four acquisitions during the
year. The focus for three of these was on service
operations, with the aim of gaining a competitive
advantage by increasing our after-sales business
and service. The acquired companies operate in
Great Britain, Finland and Norway. The fourth
acquisition was made in Sweden and was complementary,
with a focus on our solutions business.
• We continued to strengthen the AxFlow brand,
implementing a range of marketing and sales initiatives
through targeted campaigns to promote
both the AxFlow brand and individual product
brands. We also invested in enhanced sales efficiency,
through a new CRM system, which has
great future potential for our customer relations.
• The development of AxFlow Systems continued
during 2011, allowing us to offer new systems
solutions to the process industry throughout the
year. Our target is to double sales in three years,
and we expect to meet it.
• We continued to share knowledge and best practice
within the AxFlow group, as well as improving
internal and external communications in general.
Sales and operating profit, MSEK Sales by segments, %
1,500
1,000
500
0
07
08
09
10
11
150
100
50
0
Sales
Operating profit
6 7 8
5
4
3
1
2
1. Food 23%
2. Petrochemical 21%
3. Chemical 22%
4. Water, waste water 12%
5. Pharmaceuticals 6%
6. Building, ceramics 5%
7. Pulp & paper 4%
8. Other 7%
Q&A with President Ole Weiner
How was 2011 for AxFlow
AxFlow showed strong results with steady sales
growth. Net sales were MSEK 1,195 (1,134) and operating
profit was MSEK 63 (50). We are on the right
track in terms of growing our business to also
include service and solutions, as well as expanding
our local presence.
What will you focus on in 2012
We will continue to focus on growth, although obviously
under more challenging conditions in 2012.
At the same time, the current market outlook and
our financial strength present opportunities for
us to gain market shares. We will continue making
strategic acquisitions to further strengthen our
European market leadership. From an internal
point of view, we will continue working in our pan-
European specialist and functional teams in order
to utilise best practice and create stronger offerings.
36

AxFlow
Efficient meat cooling
the challenge
Vodňanská Drůbež, in the Czech Republic, processes
meat in four production plants on modern production
lines. The processing line in the town of Vodňany produces
chilled and frozen meat products in semi-finished
and finished forms. Meat separation – meaning
de-boning and decanting – generates heat. Prolonged
high temperatures are always a hygiene risk, potentially
leading to rejected produce and resulting in economic
losses. Separated meat must be cooled immediately
– from about 15˚C to -1o˚C – so it can be safely
transported to the next production stage. The current
de-boning production capacity is about 2,000 chickens
per hour.
Originally, Vodňanská Drůbež used to cool and dose
the product in small 17 kg crates, for at least 12 hours,
before it was ready for expedition to the next production
stage. Now, AxFlow’s cooling system chills and
doses the meat product continuously, so it is ready for
immediate transportation.
the solution
A 100-percent hygienic production solution at every
stage requires equipment that is tough, durable and
resistant to abrasion from bones. The core of AxFlow’s
system is a scraped surface heat exchanger and a
rotary lobe/circumferential pump with an open throat.
Scraped surface heat exchangers continuously scrape
the inside surface of the barrel to stop the accumulation
of product, preventing possible contamination and
assuring efficient heat transfer.
The AxFlow solution also includes the pump feeder
from the meat separator, the centrifugal separator, an
over-feed system, as well as a complete system for CIP
– Cleaning-In-Place – including chemical dosing and
cleaning. AxFlow also supplies all piping, electronics
and a control and monitoring system. In short, a complete
turnkey system.
Value created
The final, ready-for-transport product is now fed
directly into 300 litre crates and is immediately transported
to the next production stage. This results in a
completely hygienic production process, an increase
of production efficiency – due to time saving – and an
elimination of heavy manual work, as well as energy
savings – because AxFlow’s new solution consumes
much less energy than the old crate cooling system.

As the exclusive distributor in Sweden and Norway for the Japanese Fujifilm Corporation,
Fujifilm is the brand through which AxImage addresses the market. The
brand enjoys a top position in the imaging markets. Although traditionally connected
to photography, Fujifilm’s offer comprises three areas within digital imaging
solutions: medical imaging, graphic arts and digital cameras/photo finishing.
AxImage
Digital imaging solutions
far beyond photography
38

Business group – AxImage
Increased value through expanded
service offerings
AxImage offers imaging products and solutions in three main segments, corresponding
to its three business areas: medical, graphic arts and photography. During 2011, the
medical and graphic arts sectors developed positively, while digital cameras represent
a falling market.
Medical imaging solutions – a growing
customer base creating opportunities
As people are getting older, the numbers of medical
diagnoses in our hospitals are intensifying.
At the same time, patients are placing higher
demands on health care – which increases the
number of X-ray examinations needed. These driving
forces are creating major incentives for the
medical equipment industry and there is currently
a heavy focus on installing modern and completely
digitalised X-ray systems.
AxImage’s medical imaging solutions business grew
during 2011. The customer base has expanded in
recent years because the healthcare sector has
been deregulated, enabling private clinics to enter
the health care market. In 2011, around 60 percent
of all X-rays in Metropolitan Stockholm – the capital
of Sweden – were performed privately. In this
environment, AxImage’s offering has shifted from
selling multiple vendor equipment to focusing on
Fujifilm’s products and services, such as Fujifilm’s
mobile X-ray labs.
Graphic arts – improved
environmental performance
The graphic arts industry – newspaper/magazine
printing houses, packaging printing and other
related areas – in Northern Europe is undergoing
a major consolidation. With tough competition,
companies are experiencing increased pressure to
secure income.
AxImage has successfully pursued two strategies
to retain its margins, placing an increased focus on
service offerings and developing products with an
improved environmental performance.
view. With its low-chemistry plate used, for example,
by newspaper printing houses, AxImage has
overcome this challenge. In comparison to conventional
plates, the low-chemistry option uses up to
75 percent less chemicals. Having to buy less chemicals
reduces the cost for printing customers, as it
lowers the fresh water consumption, along with
the cost of waste handling and maintenance. Lowchemistry
plates have been a major sales success
and AxImage aims to further increase its market
share.
Digital cameras and photo finishing
– delivering well in a tough market
Since the early 2000s, the price of digital cameras
has dropped significantly. This transformed the
product from being a tool for professionals into a
mass-market commodity. The shift clearly affected
the photographic industry, which quickly had to
adjust to the new conditions – only to see them
swiftly change again as the smart phone entered
the market, expanding the interest in photography,
while also changing the perception of quality.
The past ten years have been a bumpy ride for digital
cameras: this is now a shrinking market, finding
it hard to retain its previous status.
Due to adverse market conditions, AxImage Photo
did not perform well in 2011. The retail side, operating
in Norway under the Elite Foto brand, fell behind
target. Cost adjustments have been put in place,
with the aim of ensuring that the cost base fits the
operational volumes.
The environmental thinking within the graphic arts
industry has historically been limited. Price considerations
still tend to weigh more heavily than environmental
ones, which means that successfully offering
environmental products requires that these are
also beneficial from a purely economical point of
39

Business group – AxImage
Strategic activities in 2011
In many ways, AxImage is a product-focused organisation
selling consumables and equipment. However,
as products are becoming more and more
refined – and the general quality level rises – the
customer value is not only principally linked to the
quality of the products. AxImage has seen a steady
growth of its service organisation, which is taking
an increasingly important role in the sales and relationship
areas of all three-business lines. In 2011,
action was taken to streamline and restructure the
service function – consolidating all support, client
relations and supervision into one profit centre
for service. This reorganisation reinforces the
sales focus of the sales department, which also has
been strengthened during the year. The new service
department has formalised its working processes by
gaining ISO 9001 and ISO 13485 certification.
Sales and operating profit, MSEK Sales by segments, %
600
300
60
30
3
4
1
1. Graphic arts 31%
2. Elite Foto 29%
3. Photo 27%
4. Medical 13%
0
0
Sales
2
-300
07
08
09
10
11
-30
Operating profit
Q&A with President Nils Petter Tetlie
How was 2011 for AxImage
In 2011, we increased our market shares in the
graphic arts, medical X-ray systems and photo finishing
sectors. Our market share for digital cameras
was reduced and the market itself declined.
We also improved our gross margin, despite tough
market conditions.
What will be the main focus for 2012
In 2012, we will continue building on our main
strengths: our brand, service and long-term owners.
Our major objective for next year is to continue
creating a profitable wholesale business across Sweden
and Norway. Our focus is on profitable growth
within graphic arts and medical systems.
We will continue to develop our offering and to
improve our processes in our service-related business,
in response to our customers’ increased
requirements in this area.
40

AxImage
Unique system solution that is now
the industry standard
The challenge
Patients with severe injuries and illnesses are often
difficult to move. When they arrive in hospital, they
are usually placed in the Intensive Care Unit. For
these patients, even a short move can have serious
consequences.
The solution
Rather than moving the patient to the radiology
department, the radiology equipment is moved to the
patient – radically changing the workflow.
AxImage’s mobile X-ray solution FCR Go was
launched in 2009, just as a major technology shift
was being implemented in many hospitals throughout
Sweden and Norway. By the end of 2011, 20 FCR Go
had been sold to large regional hospitals around the
Nordic region.
Value created
Intense competition exists within the mobile X-ray
field. But AxImage FCR Go is unique because it builds
on image plate technology while all competitors offer
solutions based on digital detectors. This gives the
FCR Go many advantages in areas including safety,
price and efficiency.
Another competitive edge of the FCR Go is that its
mobility function means we can demonstrate the
product in hospitals. This has never been possible
before. AxImage gave a number of live demonstrations
during 2011.

Financial summary
Income Statement – Group
MSEK 2011 2010
Net sales 5,664 5,230
Cost of goods sold -3,920 -3,654
Gross profit 1,744 1,576
Selling expenses -1,020 -964
Administrative expenses -443 -411
Other operating income 18 23
Other operating expenses -11 -12
Operating profit 288 212
Result from other securities and receivables accounted for as fixed assets 1 -2
Interest income and similar income 4 2
Interest expense and similar charges -17 -20
Profit after financial items 276 192
Income taxes -98 -70
Minority interests -10 -5
Net profit for the year 168 117
42

Statement of Financial Position
MSEK 31/12/2011 31/12/2010
ASSETS
Fixed assets
Intangible fixed assets 393 414
Tangible fixed assets 194 190
Financial fixed assets 76 74
Current assets
Inventories 827 758
Current receivables 963 921
Cash and bank balances 356 254
TOTAL ASSETS 2,809 2,611
Shareholders’ equity and liabilities
Shareholders’ equity 1,298 1,247
Minority interests 20 14
Provisions 126 124
Long-term liabilities 102 157
Current liabilities 1,263 1,069
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 2,809 2,611
Pledged assets 1,022 941
Contingent liabilities 22 26
Cash Flow Statement – Group
MSEK 2011 2010
Cash flow from operating activities
Profit after financial items 276 192
Adjustment for items affecting cash flow 153 125
429 317
Income taxes paid -50 -46
Cash flow from operating activities before
changes in working capital 379 271
Cash flow from changes in working capital
Increase (–)/Decrease (+) in inventories -73 9
Increase (–)/Decrease (+) in trade and other receivables -33 -123
Increase(+)/Decrease (–) in trade and other liabilities 1 105
Cash flow from operating activities 274 262
Cash flow from (or used in) investing activities -104 -84
Cash flow from (or used in) financing activities -67 -253
Net change in cash and cash equivalents 103 -75
Cash and cash equivalents at beginning of year 254 357
Effects of exchange rate changes on cash and cash equivalents -1 -28
CASH AND CASH EQUIVALENTS AT END OF PERIOD 356 254
43

Management and Board
The Executive Management: Lars Brehmer, Nils Petter Tetlie, Ann-Christine Kling,
Ole Weiner, Mats R. Karlsson, Martin Malmvik and Peter Lindquist.
Executive Management
Mats R. Karlsson
President and CEO
Lars Brehmer
Executive Vice President and CFO
Ann-Christine Kling
Director Human Resources
Martin Malmvik
President AxLoad
Ole Weiner
President AxFlow
Peter Lindquist
President AxIndustries
Nils Petter Tetlie
President AxImage
Board of Directors
Paul Schrotti
Chairman Axel Johnson International
Executive Vice President
Axel Johnson AB
Fredrik Persson
President and Chief Executive Officer
Axel Johnson AB
Caroline Berg
Vice President Human Resources
and Communications
Axel Johnson AB
Johan Fant
Vice President Chief Financial Officer
Axel Johnson AB
Erik Lindvall
Group Chief Executive and CEO
AxFast AB
Alexandra Mörner
Chairman of the Board of Antonia
Ax:son Johnson Foundation for
Sustainable Development. Board
member of Axel Johnson AB
and Axel Johnson Inc.
44

The Axel Johnson group
Axel Johnson International is part of the Axel Johnson group, a family-owned company that builds and develops
businesses within, retail and business-to-business sectors, as well as services. The company was founded in
1873. Now in its fourth and fifth generation, the company is owned by Antonia Ax:son Johnson and her family.
The owner believes in the dynamic power of entrepreneurship to change the world, long-term thinking, quality,
respect for people, environmental sensitivity and social responsibility. Values that have permeated the group for
almost 140 years.
The group currently comprises Axel Johnson International, Axstores, Martin & Servera (70%), Novax, Svensk
Bevaknings Tjänst and the partly owned listed companies Axfood (approx. 50%) and Mekonomen (29%), with
a total annual sales of SEK 63 billion and 19,000 employees.
Design and production: Intellecta Corporate and Silent Fiction.
Portraits and main photography: Patrik Instedt.
Other photos: Axel Johnson International. Shutterstock (front cover/inside, page 16).
Getty Images/Hal Bergman (page 26), Getty Images/MedicalRF.com (page 38).
Print: Ineko AB, Stockholm, 2012 (ISO 14001 and 9001 certified)

Axel Johnson International AB
Sveavägen 166, floor 17, SE-113 46 Stockholm, Sweden
Tel: +46 8 453 77 00
www.axinter.se