See PDF - Tina Thelenius

Servicing industrial needs from
heavy duty to high tech
Annual Review 2010

18
Our people
Our 2,000 employees represent a wealth
of skills, know-how and experiences, all committed to
solving our customers’ problems and delivering on
our promises. Entrepreneurship and respect for people
are the key characteristics for all our operations,
and we have a firm belief in local presence and
building long-term relations.

20
We have a true passion for business, respect for people
and a constant quest for customer value.

People development
Finding the right skills to
cope with the future
As the competition on the labour market grows tougher, securing the best talents is getting increasingly
more important. We need to find new ways to attract, develop and keep high-performers in
the company and we will achieve this by applying a professional and structured people development
strategy.
We want our employees to reach their full potential and, at the same time, to contribute by improving
the productivity, profitability and efficiency of the organisation. Within Axel Johnson International, we
have a wealth of highly competent and ambitious employees, devoted to doing a good job with the
customer’s best interest at heart.
The employees we want to attract are those who share our values, who thrive in a business focused on
putting the customer first – and who can see the big picture, beyond their own areas of responsibility.
Developing our employees
An important challenge for Axel Johnson International in the coming years is to manage the
approaching generation shift. As many of our leaders retire, there is an urgent need to identify the
next generation of leaders. In order to attract and keep talented young leaders and other key
employees, we must constantly strive to enhance our employer brand. We have initiated a development
programme to meet this challenge.
Four key areas are pinpointed. The first area focuses on resources and skills planning. This includes
identifying key employees, structuring succession planning, evaluating leader profiles and continuing
to develop and follow up on the newly initiated trainee programme. The second area is about
developing performance and competence. Our leaders need to know where we are going, to know
how to get there – and which requirements are needed. We have analysed and identified a leadership
profile to form the base of our leader development programme. The third area is about developing
career paths and creating an active, attractive internal job market.
The fourth and last area is about ensuring employee motivation. Our employees are very important
to us and we constantly strive to offer favourable conditions, allowing our employees to perform at
their very best, to evolve and to thrive. Key tools in this area are our regular employee satisfaction
surveys and performance reviews.
Ultimately, these measures will help to reinforce business values and increase profitability. Our leaders
will get the necessary means to guide and encourage their employees towards our common goals.
In our entrepreneurial culture, we understand and appreciate the fact that our leaders and our
employees come from different starting points. In fact, this is one of the success factors in our business
and we embrace the diversity.
21

The trainee programme

The world is our playing field
In September 2010, the new trainee programme for
our next generation of leaders was launched. The programme
runs for 13 months and combines challenging
practical work with theoretical sessions.
A trainee appointment is a privileged way to obtain an
insider perspective on a variety of work fields, to learn
how the organisation works and to gain understanding
of the business and Axel Johnson International’s
corporate culture. In addition, the programme provides
a unique opportunity for networking.
Our international structure, combined with the
strength of being a part of the Axel Johnson group,
offers vast opportunities to work cross­functionally –
as well as internationally – and the trainees we are
looking for are generalists rather than specialists. For
the individual, a well­executed trainee programme
will greatly improve her or his chances of finding an
interesting position. From our perspective, the trainee
programme allows us to identify talented young individuals
who can take on a future leading role.
The first group has seven trainees, each with a Master
of Science degree in Industrial Management or Business
with a focus on marketing and sales.
“The direction suited me perfectly, since I wanted to
work close to – as well as being part of – the sales function
in an organisation, which is more or less the heart
of Axel Johnson International,” says Frida Kilany, a
trainee at AxFlow.
The programme highlights the wealth of career and
personal development possibilities and offers trainees
the chance to grasp the bigger picture by learning
about different areas and products. The programme
advertisement stressed other important aspects of the
scheme: an entrepreneurial spirit, a strong focus on
the individual, independence, significant responsibilities
and “on the job training”. And the trainees are not
disappointed.
“The programme has lived up to my expectations and
even exceeded them. I actually thought our work
would be a bit more directed, but it is really all up to
you to solve the task, to learn and explore the company
Martin Hedberg (AxIndustries), Annika Joos (AxIndustries), Michael
Westin (AxImage), Klara Gustafsson (AxLoad), Frida Kilany (AxFlow),
Camilla Penttilä (AxImage) and Tobias Töpel (AxLoad).
– with help, of course, from your supervisor and your
mentor. And although this is challenging, it is also
what makes it fun! There are scheduled training sessions
too, which is good. But you can never learn as
much as you do ‘out on the field’,” says Frida.
All trainees are given an individual marketing project
to “make happen” during the year. The projects range
from marketing campaigns or surveys – to exploring
new marketing opportunities and the launching of
new products.
“In addition, we are involved in day-to-day work
tasks, ranging from home page updates, visiting customers
and attending industry fairs – to being part of
group-wide projects. One aspect all areas share is the
flat organisation, which opens up a high degree of
freedom. Everyone is very open and friendly: they
trust and encourage you to follow your instincts and
take your own decisions. The only limit is how much
you can squeeze into your day,” Frida laughs.
Other valuable aspects of the programme include the
broad perspectives, the belief that the people truly are
the company and the networking opportunities. Then,
of course, there are also the challenges.
“Most of us have felt that trying to learn everything
about these highly specialised industries and products
has been the biggest challenge. And in my case,
working with Eastern Europe – when you do not speak
the languages – is also a challenge, but a positive one.
You just need to work closer with the local organisations,”
Frida adds.
While Axel Johnson was both well known and well
respected, none of the trainees knew much about Axel
Johnson International. But, after reading more about
its long history and broad business range, they all felt
they’d made the right choice.
“The entrepreneurial profile and the focus on sales
attracted me. It was clear that you would have to take
on lots of responsibility and challenges and that you
had to be very energetic, and that is what I prefer. You
are thrown out into the real world – and that’s how you
learn,” Frida concludes.

Our culture
Our values
Our values permeate everything we do, from internal work to meetings
with external stakeholders such as customers and suppliers.
Making things happen is about finding imaginative and alternative ways of getting
“the impossible” done. In our view, most problems are business opportunities.
We have an entrepreneurially driven culture, based on empowerment, freedom of action
and good decision-making – connected to an equally high degree of responsibility.
We deliver on our promises and we constantly strive to change and embrace new ideas.
Being far-sighted means committing to the future and investing in long-term relationships,
rather than short-term profit. We believe that a sustainable forward-looking business
model leads to cost efficiency, motivated employees and satisfied customers.
24

Being good to work with is about being flexible, trustworthy, open-minded and respecting
other people. Finding ways to enhance both our customers’ and our colleagues’ day is
one method to achieve a good internal working climate. We always have our customers’
best interests at hand.
25

Sustainable business
Sustainability is good business
As a distributor, Nomo’s* environmental impact is
lower than manufacturing companies, but there are
always areas for improvement. Johanna Jonséus has
co­ordinated the company’s quality and environment
efforts since 2002, in addition to her other role as a
technical engineer.
Nomo is certified according to the quality management
system, ISO 9001 – as well as the envir onmental
management system, ISO 14001.
“A great deal of our envir onmental goals go hand in
hand with improved profitability, in particular, with
regard to reducing costs. Systemising your work gives
you control over the resources. We have also noticed an
increasing customer demand for an environmental
certification,” says Johanna Jonséus.
Energy consumption, recycling and reusing, paper consumption
and, above all, transports are the most significant
areas of improvement. And action is being taken.
“We have listed our environmental issues and evaluated
the significance of our environmental impact. For
example, we conducted an energy survey and have
taken measures to lower our energy consumption. We
have installed ceiling fans in our warehouses to efficiently
distribute the warm air, implemented new routines
for warehouse doors to reduce heat spillage and
investigated alternative methods of heating. We have
also reduced fuel consumption after arranging training-courses
in eco-driving for our employees.”
Nomo evaluates all suppliers according to their environmental
profile. Sometimes there are more environmentally
beneficial alternatives of equivalent quality
to suggest to the customer – for example, when it
comes to lead free slide bearings.
“Our goals are also connected to the environmental
goals on a national level. This is a frequently discussed
area today. You constantly need to stay updated
on new goals and regulations – and must understand
the problems – in order to identify the important and
relevant improvements for your business. We will continue
to strive towards a reduced impact on our environment,”
concludes Johanna.
* Nomo is part of the business group AxIndustries.

Sustainable business on a group level
“ Corporate social responsibility is a matter of course for modern companies today. We work with ethics
and sustainability from three perspectives: economically, socially and environmentally. On the environmental
side, we have four focus areas where we work hard on reducing our environmental impact: transport
(persons and goods), energy consumption, energy efficient solutions and products, and recycling.”
Anki Kling, Director of Human Resources
27

Vinjett
AxIndustries
Adding value to the supply chain
42

AxIndustries’ main focus and expertise lies in
bearings & transmissions and in heavy duty vehicle
components for customers in manu facturing and
after-market segments. AxIndustries create value
for customers and suppliers by bringing structure
and efficiency to the supply chain, through combining
access to leading techno logies with highly
committed service.
43

Business group – AxIndustries
Entrepreneurial drive
AxIndustries addresses the market through nine companies which all have strong niche
positions. They are grouped in three divisions: Bearings & Transmissions, Heavy Duty
Vehicle Components and Industrial Products.
Within Bearings & Transmissions, we offer products for rotating equipment. The main product groups
are roller bearings and mechanical transmission components, brought to the market by our companies,
Jens S, Nomo, Sverull and Elektro Dynamo. We offer customised products and services to small
and medium-sized companies, as well as to global leaders like ABB, Sandvik, SSAB and Tetra Pak.
In Heavy Duty Vehicle Components, we offer a broad range of components and services for trucks
and trailers, forestry, construction and agricultural vehicles through our companies Abkati, LVD and
Trailereffekter.
Within Industrial Products, we address the market through Eigenbrodt and Sundquist Components.
Eigenbrodt distributes technical products for the manufacturing industry, primarily filters, gas
springs and adhesives. Customers are OEM’s and after-market customers in the Nordic countries.
Sundquist Components develops, manufactures and delivers unique high-performance products in
polymer materials that seal, absorb, protect and insulate in demanding environments, primarily for
the automotive and telecom industry.
These nine companies are characterised by a clear entrepreneurial driving force, strengthening the
overall business proposition. Moving forward, we believe in working together to present joint offers
to our customers. This will open up new opportunities and lead to increased cross-selling, ultimately
improving the bottom-line.
44

AxIndustries / Elektro Dynamo
Modern variable speed drive revives old equipment
In early 2010, Elektro Dynamo received a request from
Skanska. One of their two screeners had broken down,
effectively restricting the work in the gravel pit. As the
screener has a central function in sorting out moulding
pebbles, shingle and cobble stones, it was imperative to
get it up and running as quickly as possible.
Skanska’s problem was that the mechanical variable
speed drive in the twenty­year­old machine was too
old and in such a bad shape that it would not be worth
repairing. Replacing the old variator with a new one of
the same type did not seem optimal either, so Elektro
Dynamo came up with an alternative solution.
“Modern screener plants that are constructed today
are unlikely to be equipped with this old-fashioned
kind of mechanical machinery. So instead, I suggested
installing a modern variable speed drive and
an electrical motor. In addition to modernising the
equipment, it consumes significantly less power. In a
regular electrical motor, the investment expenditure
only constitutes about 5 percent of the total lifecycle
costs, while electricity amounts to 95 percent. So even
limited energy savings are important,” explains Ola
Jönsson, Marketing and Sales Manager, at Elektro
Dynamo in Halmstad.
At first, Skanska were hesitant about the idea of putting
an electrical device into an old machine, especially
one that would have to withstand all kinds of
weather in a gravel pit. But after hearing Elektro
Dynamo’s analysis and suggested solution to the problem,
they decided to give it a try. And the problem with
weather resistance was solved by constructing a climatised
electrical cabinet.
“I am very pleased with the outcome. Particularly in
view of the hard winter, which has not affected the
screener or its functionality. Electronics can be very
sensitive, but this is working very well. We have
another screener of the same type, so this was an excellent
opportunity to try out new equipment for the
future,” says Andreas Henriksson, Production Manager
at Skanska.
The narrow time frame was also met. The complete
system was delivered to Skanska within one week.
45

Business group – AxIndustries
Well positioned for the upturn
2010 was a year of recovery with a strong positive trend during the last two quarters. We
have seen sales volumes increase for most of our companies, and customers are no longer
confined to servicing their equipment: they also invest in new equipment. Total sales
amounted to 1,487 MSEK, with improved profitability.
During the year, AxIndustries has grown its share of the accessible spare parts market to 40 percent for
heavy duty vehicles. In bearings and transmissions, we are growing with the market and maintaining
our share. The downturn has allowed us to fine-tune our strategies and we are well positioned for
the upturn.
On the whole, 2010 was a year of transformation, when the market gradually recovered from the
downturn in 2009. This applies to the Swedish market in particular, but all Nordic markets showed
signs of an upturn.
Downsizing and restructuring measures impaired our growth during the first quarter, but in the second
quarter we started seeing the effects of the cost-reduction programme implemented in 2009.
Added value – such as service and technical expertise – is increasingly demanded by our customers.
We will continue to improve our performance when it comes to service level and delivery accuracy.
Acquisitions during the year have helped to expand our market coverage and significantly increased
the service capacity. We acquired the Finnish company, Tauno Tasanto, progressing our Nordic
expansion within bearings and transmissions. LVD expanded with a regional spare part company
and strengthened its leading position in Sweden, and Elektro Dynamo acquired a service company
to broaden the offering to customers in Sweden. To further improve delivery performance, Abkati
built a new distribution centre in Malmö.
Sales and operating profit
1,500
1,000
500
0
46
06
07
08
09
10
Sales, MSEK Operating pro�t, MSEK
150
100
50
0
Sales by segment
Heavy industry 7%
Transport industry 34%
Other 9%
General industry 50%

What to expect from 2011 – and beyond
“A continued expansion is our main target for the
years to come. We will expand in the Nordic
market through acquisitions and a focus on
delivering a healthy bottom-line result. Finland is
a key market for us, where, at present, we have
three businesses. But we are actively looking for
more companies.
Increased integration and coordination are two
priority areas to boost growth and profitability.
Constantly improving our service level is a key
success factor. We will drive operational excellence
through continuous improvements in
logistics, purchasing and IT. It should always be
easy to do business with us, thanks to smart
EDI and e-commerce tools.”
Peter Lindquist, President AxIndustries
47

Vinjett
AxImage
In the vanguard of a digital
imaging revolution
48

As the exclusive distributor in Sweden and Norway
for the Japanese Fujifilm Corporation, Fujifilm is
the brand by which AxImage addresses the market.
The brand enjoys a top position in the imaging
markets. Although traditionally connected to
photo graphy, Fujifilm’s offer comprises three
areas within digital imaging solutions: digital
cameras and photo finishing, medical imaging
and graphic arts solutions. The two major growth
areas are the medical and graphic arts sectors.
49

Business group – AxImage
Exploring new frontiers
The focus on digitalised imaging solutions offers great promise – as well as major challenges.
Our customers constantly demand higher technological levels, more functionalities,
higher resolution and shorter delivery times – all at a lower cost. The competition is
tough, but the AxImage recipe for future success is based on solid long-term customer
relations, excellent service, quality and a competitive product portfolio.
One of AxImage’s key areas is medical imaging solutions, whereby hospitals and other medical clinics
are supplied with high-tech imaging systems. New technologies constantly expand and exceed
previous limitations – and the crucial developments in this field are all powered by technological
innovations.
The main products encompass digital x-ray detectors and labs, as well as other medical imaging
systems. We increased our share of the total amount of sold digitalised x-ray labs in Sweden. An
important innovation is Fujifilm’s digital radiology system, FDR AcSelerate, with its revolutionary
low-radiating flat panel detector.
The Fujifilm brand enjoys a particularly strong position in the graphic arts market. Digital printing is a
natural growth area and Fujifilm has a stated ambition to head the field in technological development.
Focus areas are digital plates and Ink Jet technology, where AxImage has taken the lead
through the Wide Format Ink Jet.
Fujifilm’s newly released software module, XMF Remote, allows printing customers to offer webbased
services. The Inca Wide Format InkJet, additionally, will strengthen our offer to the high-end
manufacturers of sign and display materials.
Environmentally friendly printing plates enjoy a growing demand and Fujifilm’s Brillia plate combines
three important advantages: a greatly improved printing capacity, a high quality – and a low- chemical
process.
The photographic sector consists of two main areas: digital cameras and photofinishing, where Fujifilm
is a major player. New functionalities for the professional photo market are being continuously
integrated into the camera systems, including 3D functionality and higher image quality. In Norway,
Elite Foto is a successful photo chain with 66 stores.
50

AxImage / Medical
Higher accuracy and lower radiation doses in 3D imaging
Fujifilm’s new digital x­ray imaging system offers new
diagnostical possibilities. Its Tomosynthesis* process
uses ordinary x­ray equipment – instead of computed
tomography – to create three­dimensional images of
the body. The system takes multiple images from different
angles, facilitating the discovery of injuries and
changes that are otherwise hard or impossible to spot.
In addition to increasing functionality and enhancing
the image quality, Thomosynthesis significantly lowers
the x­ray doses for the patient, compared to computed
tomography.
“This is an intriguing development with promising
results. We have noticed a lot of interest from our customers
and two of Sweden’s largest radiological clinics
have expressed their interest in participating as
* Tomosynthesis is a method for producing images of slices through the body using
a general radiographic X-ray system with a direct digital radiography detector.
reference clinics. Previous studies have shown big
potential for improved diagnostics of lungs and bone
structures, which in terms of volume, form a significant
number of the examinations performed today,”
explains Patrik Eriksson, Product Manager, Medical
Systems at Fujifilm.
The detector technology behind Fujifilm’s digital x­ray
systems, combined with Fujifilm’s extensive imaging
know­how, produces Tomosynthesis images of superior
quality. In addition to the apparent health benefits for
the patient resulting from more accurate diagnostics
and a reduced amount of x­rays, other advantages
include savings in terms of both costs and working
hours at the hospitals.
51

Business group – AxImage
Steady focus on profitability
AxImage delivered its strongest operational result in several years, reaching positive earnings
in the second half of 2010. The improved profitability originates in a streamlined business,
consistent with the Fujifilm corporate strategy, including a cogent cost-cutting programme.
During the year, AxImage experienced stabilised revenues and growing market shares and we have
enforced a strong focus on profitability in all new projects. The cost-reduction programme covered
organisational changes into a more unified and customer orientated organisation, including outsourcing
distribution.
The graphic arts industry
Fujifilm has grown its share of the otherwise declining graphic arts market, which continues its consolidation.
Large format InkJet technology and low-chemical printing plates have been two important
driving forces during the year. 40 percent of AxImage’s customers now choose low-chemical
plates, which are available for commercial printers, as well as for newspaper printers. During 2010,
we achieved an overall market share of close to 50 percent in newspaper printing.
Medical imaging solutions
Our medical imaging area expanded significantly, in spite of a weak market. AxImage has grown its
share of the digital x-ray detector market to 44 percent, and delivered four digital x-ray systems out
of every nine purchased. A road show around the major Swedish hospitals indicated a general pent
up need for investments, and private health care providers represent a growing customer segment.
The FDR D-EVO – launched in the end of 2010 – was another important progression. When upgrading
to direct digital equipment in an examination room, only the x-ray detector needs replacing. The efficiency
of the digital process has the potential to double the number of patients handled during a day.
The photographic sector
AxImage, through its Fujifilm brand, has grown its total market share in Sweden, while the Norwegian
market position remains fairly level. Cameras constitute around 40 percent of the total sales
within the photographic sector. In Norway, AxImage’s retail chain Elite Foto was awarded the consumer
electronic chain with the highest customer loyalty.
Sales and operating profit
750
500
250
0
52
06
Sales, MSEK
07
08
09
10
75
50
25
0
Operating pro�t, MSEK
Sales by segment
Medical 10%
Imaging 28%
Elite Foto 33%
Graphic arts 29%

What to expect from 2011 – and beyond
“ We will continue offering high quality service
with a slim and efficient operation. Hence, we
need to focus on staying profitable by pursuing
cost-efficiency in all parts of our work processes.
It is also imperative that our customers know
that we are supported by a strong owner with a
long-term perspective.
Finally, our focus will be on areas where we have a
large share of the market and where we are
aligned with the Fujifilm Corporation. Our strength
is our local presence and high competence level.”
Nils Petter Tetlie, President AxImage
53

AxLoad / Certex
New wire rope improves life span
In 2010, Atlas Copco approached Certex with a problem
concerning the wire rope used on their drilling
rigs. Atlas Copco had received feedback from their
customers that the wire rope suffered from too much
elongation, resulting in a shorter life span than the
previously used chain.
The wire rope was introduced to replace the chain in
2005, as a means of achieving a softer drilling operation.
The particularly tensile wire rope was chosen to
answer Atlas Copco’s needs, based on Certex’s experience
of similar applications and the wire rope design
available at that time.
In order to solve the elongation problem, Certex worked
with Atlas Copco to make a thorough analysis of the
wire rope construction. After extensive tests, they concluded
that the unfortunate elongation was due to
material fatigue and internal wire breakage.
A new and firmer wire rope construction – based on
the latest technology – was designed for the applica­
tion, with the help of one of Certex’s leading suppliers.
The new wire rope shows excellent fatigue resistance
and a significantly prolonged lifecycle.
“A wire rope is quite complicated, and the individual
performance depends on the application. So indentifying
and solving problems requires a high level of
wire rope expertise. In this case, the problem appeared
to be elongation – but proved to be fatigue,” says Lars­
Olof Max, Technical Manager at Certex.
To improve the life span of the wire ropes used for
Atlas Copco even further, Certex is now looking at the
possibility of using two ropes instead of one, offering
further resistance to fatigue. After the final tests, the
new special wire rope will also be applied to other
drilling rigs.
Certex has an extensive knowledge and understanding
of the special conditions required for drilling. Certex
has supplied Atlas Copco with steel wire ropes for
their drilling rigs since the 1970’s.
33

AxFlow / Scanship
Effective seaward waste management
Scanship is a leading supplier of waste and sewage
management technologies to major cruise liners.
AxFlow in Norway has worked with Scanship since
2002, firstly as a supplier of hose pumps to their food
waste systems. In 2010, AxFlow expanded the offering
with centrifugal pumps and has also delivered
complete double pump units.
The latest project included centrifugal pumps for grey
and black water waste management within cruise
shipping. The time frame was very short and the complete
system needed to be delivered within five weeks
from ordering. Initially, the order only included
pumps but was later extended to encompass AxFlow’s
system service as well.
The waste management system on a ship is complicated.
All waste must be taken care of and processed on board
– often amounting to several tons each day on a cruise
liner carrying up to 3,000 passengers. The biggest part
of the waste is made up of grey water – waste­water
from domestic activities, such as dishwashing or bathing,
and black water – sewage containing human waste.
In Scanship’s waste management system, the liquid is
separated and refined into a state of clean water, in
accordance with government regulations. The
remaining dry solids can then be incinerated into ash.
The complexity of this type of process requires a genuine
understanding and expertise. In this case,
especially within pipe welding.
AxFlow provided Scanship with an efficient solution
combining standard pumps and partial customisation
of the waste management system. AxFlow System’s
proximity to Scanship’s customers proved to be a clear
advantage, leading to a significantly shorter delivery
time and cost­savings in transportation.
“To Scanship, having a single point of contact for their
entire pump systems and logistics is a big advantage.
It allows them to reduce the number of people working
on an increasing number of projects. Environmentally,
an effective waste management system is of
utmost importance for Scanship and their customers,”
says Christian Semb, Sales Manager, AxFlow, Norway.
39

Axel Johnson International AB
Sveavägen 166, � oor 15, SE-113 46 Stockholm
Tel: +46 8 453 77 00
www.axinter.se