WIBAX Annual Report 2011

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WIBAX • 3

TABLE OF CONTENTS

Group and parent Company

managing director’s Statement .............................................. 6

administration report .................................................... 7 – 11

Financial overview ................................................................. 12

Income Statement .................................................................. 13

Balance Sheet................................................................... 14-15

Cash Flow analysis ............................................................... 16

accounting principles and notes to the Financial Statements ........................................ 17

notes ............................................................................... 18 – 23

audit report .......................................................................... 24

Board of directors .................................................................. 25

management Group ................................................................ 26

PiTEÅ

skellefteå

Ånge

Borlänge

stockholm

hallsbergNorrköping

falköping

Kalmar

falkenbergUddevalla

Örnsköldsvik

4 • WIBAX

MARKET

WIBaX Head oFFICe

WIBaX oFFICe

WIBaX termInaL

For LIQuId produCtS

WIBaX termInaL

For dry produCtS

WIBAX • 5

BUsiNEss cONcEPT

our business concept consists of selling, buying in, processing and distributing chemical products to the base industry in europe.

sTRATEgy

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

GOOD CHEMISTRY

6 • WIBAX

An eventful business year has passed, with coun-tries in southern Europe contributing to turbulence on the global market during the second half of the year. Despite this, the WIBAX Group has been able to continue to expand and grow further. In addition to a significant increase in turnover, profits have also been delivered. The turbulence on the NaOH market that existed at the start of the year was dealt with, and all the agreements that had previously been entered into were fulfilled, once again dem-onstrating WIBAX’s strength as a reliable supplier. As a result, we have been able to further strength-en our market position, which in the long term is expected to counterbalance the profit margin that has been achieved. WIBAX’s flexibility, agility and foresight have contributed to this result, despite the global market volatility that has characterised the second half of the year. We have been able to cope with the opening up of new markets, cost awareness and stock optimisation activities, which internally have consistently been important pieces of the puzzle for continued growth. Chemical prices have fluctuated between differ-ent product segments during the year, although on the whole an increase in prices has been observed. WIBAX’s global purchases have grown, further safeguarding the company’s competitiveness and delivery reliability.

The logistics system has also been expanded, re-sulting in a larger fleet of tankers and additional storage capacity in WIBAX’s terminals. Several new products have been introduced onto the mar-ket during the financial year, and the products de-veloped in-house in particular are deemed to have an interesting future. A number of investments have been made, including the expansion of the terminal in Norrköping, the increase in production at Piteå, as well as the required expansion of the head office that has resulted in premises that are better adapted to the business. The Group now also includes an additional wholly owned subsidiary, WIBAX Industrial AB, which is further strength-ening the company’s strong market presence. The areas of quality and environment, safety and pro-tection have consistently been a high priority. This has helped to ensure the successful acquisition of the necessary permits and peripheral processes, as well as safe and secure operations. This, alongside a well developed, professional organisation, means that WIBAX is meeting the future with confidence and that established objectives can be viewed as interim goals.

MANAgiNg DiREcTOR’s sTATEMENT

DyNAMisM iN ThE MARKET

Piteå, February 2012

Thomas Sundqvist

WIBaX aB

WIBaX LoGIStICS aB

WIBaX teCH aB

WIBaX enerGy aB

WIBaX InduStrIaL aB

WIBAX • 7

NATURE AND fOcUs Of OPERATiONsThe WIBAX Group’s core operations are the import, produc-tion, distribution and sale of chemicals, particularly fluid prod-ucts in bulk. The Group will continue in this way in order to strengthen its market positions with its existing operations.

WiBAX ABThe parent company was registered in 1986, and the compa-ny headquarter is located in the company’s own properties in Piteå. The properties include offices, production premises, warehouses, workshops and wash halls. The parent company is responsible for purchasing, production, warehousing, sales, administration, quality and the environment, as well as safety and protection management. WiBAX LOgisTics ABWIBAX Logistics’ primary task is to co-ordinate the Group’s land transport requirements. The company’s transport fleets are of a particularly high standard and quality and the person-nel are experienced and competent. The company is one of the most comprehensive tanker transport companies in Sweden, with the capacity to transport the most common chemicals to the processing industry. WIBAX Logistics AB is also responsible for the operation and maintenance of the Group’s terminals. WiBAX TEch ABWIBAX Tech is at the forefront of the Group, providing sup-port for new commercial products and technology. The deve-lopment of new applications is a priority area that enables significant growth for the Group. The company also supports customers with product implementation and equipment for optimising their processes.

WiBAX ENERgy ABWIBAX Energy AB is the division within the Group that focu-ses on renewable fuel alternatives, especially liquid bio fuels. Wibax Energy offers customers the choice of green and cost-effective alternatives to fossil fuels.

WiBAX iNDUsTRiAL ABWIBAX Industrial AB’s main activities comprise service and maintenance tasks. The company has extensive experience of dealing with high-tech products for material protection, repair and maintenance, as well as a long history of handling differ-ent projects relating to a wide range of industrial applications.

gROUP OPERATiONs

WIBAX has continued to expand during the financial year, in line with the previously established company strategy. 2011 has a been a volatile year for the market. A positive outlook and market confidence characterised the beginning of the year. The situation altered relatively rapidly during the summer, when it became clear that the economies of several countries in southern Europe were in a poor state. This resulted in uncer-tainty on the market, combined with a lower rate of production within several segments. The start of the year was affected by turbulence on the NaOH market. As a strong supplier, WIBAX was able to fulfil all the earlier agreements it had entered into, and despite a temporarily difficult situation in terms of its profit margin, WIBAX was able to live up to its good reputa-tion, a fact that is much appreciated by the market. The railway system has again been affected by the winter climate and this has had a detrimental effect on the lead times for some of our products. Autumn and early winter were generally warm, and this has also had a negative impact on some product segments. During Q3, several production stoppages for maintenance ended up lasting longer than originally planned. Despite these external factors, Wibax managed to position itself successfully in several key product segments, which can be a strong bench-mark for Wibax in the future. Overall in the second half of 2011, despite the general market uncertainties, the company main-tained its strong position on the market. We have also been able to cope with the competition, safeguarding WIBAX’s potential for continued expansion in the future.

WIBAX AB 556262-9674

the Board of directors and the managing director hereby submit these annual accounts and group accounts for the financial year 01.01.2011 - 31.12.2011.

ADMiNisTRATiON REPORT

8 • WIBAX

The Group’s market position has been strengthened further with the the addition of WIBAX Industrial AB (registered 01.04.2011) as a wholly owned subsidiary. The aim is to supplement the busi-ness with service and maintenance expertise, with e.g. material processing and system cleaning already having been positively received by the market. WIBAX’s infrastructure has continued to develop during the business year. The customer-oriented organisation has been re-inforced to achieve greater focus on customers. Purchasing has also been strengthened, resulting in a broader global network that safeguards high-quality supplies of raw materials and prod-ucts that are demanded by the market. Investments have been completed during the year, and these have run fully in accord-ance with established calculations. The development projects that have been implemented have lived up to expectations, and the logistics for these have been reinforced and further refined. Production has been expanded and work in relation to quality has consistently been prioritised. The organisation has further evolved, and the intensive value basis work that has been conducted reflects WIBAX’s core com-pany values - “Customer in focus”, “Entrepreneural attitude”, “Quality at every stage” and “Participation”. These are central terms for all of WIBAX’s operations. WIBAX is well equipped to meet the future, and the objective of achieving growth remains for the years ahead!

iNVEsTMENTsThe development of WIBAX’s infrastructure has continued ac-cording to plan in 2011, with the company investing a total of SEK 33.5 million during the financial year. The largest projects have been implemented in Norrköping and Piteå. Terminal capacity in Norrköping has been significantly expanded, and the entire property is now well adapted to the needs of the business. The investments in Piteå have focused on expanding production and the production operation’s premises, renovating existing premises and building on an additional storey at WIBAX’s head office. The investments have resulted in well adapted premises, both for today’s operations and to meet the needs of tomorrow.

PRODUcTiONWIBAX’s in-house production is growing. In order to meet in-creased demand, the cold storage space has been expanded primarily to be used for packaged products, for example for the cleaning segment. The production hall has been further ex-panded to facilitate an expansion of the existing facilities, as well as to provide additional space for new products. A number of new products have been introduced during the year, including WiMAG and WiClean products. Investments have been made to further improve the working environment for production with respect e.g. to the handling of dry chemical products. The expan-sion of the fire alarm system and sprinklers are an example of activities that have been launched to further safeguard our con-tinued production. In addition, the premises have been adapted for the mechanical and maintenance segment.

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WIBAX • 9

MARKETThe 2011 financial year began strongly, with considerable demand within all customer segments, resulting in larger market share for several product segments. The second half of the financial year was characterised by financial anxiety and a resulting general weakening of the market. With its well-functioning supplies of raw materials, WIBAX has managed to satisfy the needs of the market and made use of the opportunities that have arisen when our customers have looked for competitive alternatives. For example, WIBAX won the award of Supplier of the Year to the SSAB Group. Rising price levels during the early part of the financial year were accepted, and there has been some divergence within the prod-uct segments during the year. On the whole, however, an increase in the price of WIBAX’s major products has been noted, and this has been accepted by the market. In order to meet the market’s increased demands for technical expertise and application know-ledge, as well as to create the conditions for continued growth, WIBAX has further strengthened its organisation. WIBAX is well equipped to satisfy our customers’ needs.

ANTiciPATED fUTURE DEVELOPMENTThe long-term goals of growing with good control over the key ratios remain. Strategic long-term investments and ventures have been realised. Several key components and collaborations are in place, and the projects that are already under way in the Group mean that the prospects for the future will continue to be deemed good. The product range, along with the infrastructural set-up, skilled personnel and a good reputation in the sector, are some of the components that have contributed to WIBAX’s development.

QUALiTy AND ENViRONMENTThe year has been characterised by continued work regarding permit issues for the terminal operation. For Norrköping, it is an-ticipated that decisions and conditions will be presented by the Environmental Committee during the first half of 2012. For Skel-leftehamn, the work in respect of permits for extended operations has commenced. The conversion of safety data sheets to REACH and CLP status has taken place during the year and will continue in 2012. An application for a sustainability decision for bio-oils has been submitted to the Energy Authority. The work on driver train-ing for drivers is continuing, including continued reduced fuel consumption per transport unit. The installation of computers in the vehicles will facilitate and provide even greater potential to follow up transport and emissions. Process control, quality control and following up have been improved for our production proc-esses, and this will continue in the years ahead.

sAfETy AND PROTEcTiONSignificant investments in measures aimed at improving the work-ing environment have been implemented in the Group. The con-version from handling large bags to the bulk handling of alumini-um hydrate is a good example, and this measure has entailed both more rational and safer handling in the production process. The Swedish Transport Agency has granted WIBAX permission to conduct training activities for Professional driver skills.

Furthermore, the Swedish Civil Contingencies Agency has grant-ed WIBAX continued permission to train and examine drivers of vehicles transporting hazardous goods. Internal safety train-ing courses have continued, and we should mention the arduous training programme that tanker drivers undertake with the aim of achieving even greater safety within the operation.

WiBAX TEch ABA larger number of customer-related projects have been imple-mented during the financial year. WIBAX Tech has demonstrated considerable breadth with regards to its technical expertise, as projects have been conducted within several different sectors and process segments with good results. In addition to WiDAQ and water chemicals-related projects, areas such as bio-oils and sys-tem cleaning in various positions have also occurred frequently. The development projects have continued according to plan dur-ing the year. Entirely new products have been introduced onto the market, and further rationalisation of production from raw mate-rial to quality-assured product is safeguarding WIBAX’s position in the future.

WiBAX ENERgy ABWith the continued political pressure, and a cold winter at the start of 2011, demand for bio-oils as a replacement for fossil fuels has increased. WIBAX Energy has managed to build on the successful business organisation that has made us a reliable supplier offer-ing total solutions to our customers. This has resulted in increased market share, as well as creating the conditions for continued growth in the bio-energy branch in the years ahead.

WiBAX iNDUsTRiAL ABWIBAX Industrial was established in April 2011 as a complement to WIBAX’s other operations. Total solutions are the key – WIBAX can supply from start to finish within system cleaning and other cleaning assignments, and with the aid of high-tech products it can prevent, renovate and protect equipment made in metal and con-crete. The company carries out service and maintenance assign-ments within a wide range of areas in industrial environments, and we have received extremely positive responses from a number of parties during 2011.

10 • WIBAX

2011 has been an exciting and eventful year in every way. Our am-bition and desire to grow, in addition to great commitment to the market, have resulted in our sales continuing to increase. At a time when everyone’s focus is on cutting costs, we have had the oppor-tunity to show our versatility and efficient product handling. This has also contributed to the success of the WIBAX Group and shows that we have the right strategy. Investments have continued according to plan, and our fleet of ve-hicles has been expanded to 32. Our aim is consistently to have modern vehicles with a low average age, partially in order to fur-ther improve our delivery reliability. In addition, our growth has provided us with considerable opportunities to adapt the use of our vehicles where they can be of most use, contributing towards higher profitability and reduced environmental impact. The major-ity of our vehicles are combination vehicles, which entails greater utility through the potential to combine several types of product without this resulting in frequently expensive cleaning. Of course, growth is also accompanied by a need for personnel, and our team of drivers has been expanded by around ten during 2011. We have also implemented a new transport scheduling system dur-ing the year, including computers in all our vehicles. As part of this, we can now offer our customers faster feedback and more reliable deliveries – quite simply higher quality at every stage. In addition, safety levels will be increased through the integration of a personal

alarm for all vehicle computers, as well as a shared database in which customer-specific information linked to the delivery will be available. We have continued our work of arranging transport by rail, albeit on a small scale. Changes to our deliveries and a considerable number of problems during the year have meant that we have been forced to change the type of transport in certain areas. We are continuing our work to implement the railway as a more significant form of trans-port for WIBAX Logistics, although the technical conditions have not really existed, particularly during the winter months. Our position as one of Sweden’s largest bulk suppliers has been strengthened through the expansion of the tank storage space in Norrköping. This position has proved to be incredibly important for our logistics, and is now one of our most important terminals. The market for storing liquid fuels and chemicals has grown stead-ily, and it is our belief that, at a time characterised by development above all on the fuel side, there will be an ever greater need for storage. Our strength lies in our combination of transport and storage and the extensive knowledge we have built up over the years, contrib-uting to our strong position on the market. This is making WIBAX Logistics a unique company in the sector, with the expertise and strength to develop further.

WiBAX LOgisTics

operating incomeInternal salesoperating profit/loss (eBIt)

160 000

140 000

120 000110 000100 000

80 000

60 00050 00040 00030 00020 000 10 000

0

tSeK

16 000

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

tSeK

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

WIBaX LoGIStICS aBoperating income - operating profit/loss

2000-2011

WIBAX • 11

operating incomeoperating profit/loss (eBIt)

profit/loss after financial items as % of net turnover

equity/assets ratio, %return on capital employed

800 000

700 000

600 000

500 000

400 000

300 000

200 000

100 000

0

tSeK

40 000

35 000

30 000

25 000

20 000

15 000

10 000

5 000

0

tSeK1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

WIBaX Groupoperating income - operating profit/loss

1991-2011

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

WIBaX GroupKey ratios

1995-2011

800 000

700 000

600 000

500 000

400 000

300 000

200 000

100 000

0

tSeK

35 000

30 000

25 000

20 000

15 000

10 000

5 000

0

tSeK

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

WIBaX aBoperating income - operating profit/loss

2000-201150 000

45 000

40 000

35 000

30 000

25 000

20 000

15 000

10 000

5 000

0

tSeK 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

WIBaX aB Investments

2000-2011

operating incomeoperating profit/loss (eBIt)

12 • WIBAX

ComparISon over SeveraL yearS, Group, tSeK 2011 2010 2009 2008operating income 550 322 479 637 433 170 419 078operating profit/loss (eBIt) 29 233 31 297 37 892 27 218operating profit/loss before depreciation (eBItda) 42 006 41 536 45 327 33 811profit/loss after financial items 21 603 26 203 35 028 21 040profit/loss as % of net turnover 4,1 5,9 9,0 5,4Balance sheet total 320 411 325 344 220 804 229 110equity/assets ratio, % 29,7 25,9 31,8 20,7return on capital employed 9,2 11,5 17,0 12,9average number of employees 135 114 87 83

ComparISon over SeveraL yearS, parent Company, tSeK 2011 2010 2009 2008operating income 468 103 432 905 422 004 408 455operating profit/loss (eBIt) 17 047 20 828 28 924 21 997operating profit/loss before depreciation (eBItda) 26 944 29 265 35 209 27 481profit/loss after financial items 10 084 16 004 25 993 16 094profit/loss as % of net turnover 2,3 4,0 6,9 4,2Balance sheet total 276 725 278 559 199 555 217 776equity/assets ratio 26,7 24,8 31,2 18,9return on capital employed 6,3 8,7 13,9 10,8average number of employees 46 47 42 43

Key FIGureS - deFInItIonS

equity/assets ratio adjusted equity as percentage of balance sheet total.

return on capital employed profit/loss after financial items plus interest expenses as a percentage of average balance sheet total.

propoSaL For aLLoCatIon oF proFIt

the Board of directors and managing director propose that the available remaining profit, tSeK 22 515, be allo-cated as follows: dividend 3 500Carried forward in new account 19 015TOTAL 22 515

dividend amounts to SeK 291,7 per share.

the Board of directors proposes that the payment date for the dividend be determined as the day of the annual general meeting.

the Board of directors considers the proposed dividend to be justifiable in view of the requirements that the type of business, scope and risks place on the equity, as well as the company’s need to strengthen the balance sheet, liquidity and general position.

Consideration has also been given to the requirements that the Group’s type of business, scope and risks place on the Group’s equity as well as any need to strengthen the balance sheet, liquidity and general position.

as regards the company’s financial position and results of operations, please see the following income statement and balance sheet with the attached supplementary disclosures and notes to the financial statements. all amounts are in tSeK unless otherwise stated.

fiNANciAL OVERViEW

WIBAX • 13

Group parent Company

note 2011 2010 2011 2010 operatInG InComenet turnover 526 405 445 433 444 269 397 272activated work for own account 2 491 226 219 0 other operating income 1 21 426 33 978 23 615 35 633 550 322 479 637 468 103 432 905operatInG eXpenSeSraw materials and consumables -392 788 -348 012 -384 526 -356 066other external expenses 2,3 -24 392 -15 826 -14 080 -9 866personnel expenses 4 -73 175 -58 081 -26 417 -22 651depreciation of tangible and intangible assets 7 -12 773 -10 239 -9 897 -8 437other operating expenses 5 -17 961 -16 182 -16 136 -15 057Operating profit/loss 8 29 233 31 297 17 047 20 828

proFIt/LoSS From FInanCIaL ItemSInterest income 429 97 357 81Interest expense and similar profit/loss items 6 -8 059 -5 191 -7 320 -4 905Profit/loss after financial items 21 603 26 203 10 084 16 004

appropriations 9 0 0 -5 360 -11 267 Profit/loss before tax 21 603 26 203 4 724 4 737

tax on profit for the year 10 -5 890 -7 088 -1 439 -1 568Profit/loss for the year 15 713 19 115 3 285 3 169

iNcOME sTATEMENT TsEK

14 • WIBAX

Group parent Company

note 2011-12-31 2010-12-31 2011-12-31 2010-12-31

aSSetS

FIXed aSSetS

IntanGIBLe aSSetS product rights 11 0 225 0 225 0 225 0 225 tanGIBLe aSSetS Land and buildings 12 74 222 49 199 74 222 49 199plant and machinery 13 111 355 104 634 83 955 86 714equipment, tools, fixtures and fittings 14 4 139 3 159 2 844 2 376Construction in progress 15 6 734 5 702 6 734 5 702 196 450 162 694 167 755 143 991

FInanCIaL aSSetS Shares in Group companies 16 0 0 695 591Shares in subsidiaries 100 100 0 0Total fixed assets 196 550 163 019 168 450 144 807 Current aSSetS

InventorIeS, etC. raw materials and consumables 32 292 41 776 27 671 37 253 32 292 41 776 27 671 37 253Current reCeIvaBLeS accounts receivable - trade 87 087 100 441 77 138 86 246Income tax recoverable 71 0 1 002 0other receivables 593 949 461 366prepaid expenses and accrued income 17 3 769 4 270 1 976 3 312 91 520 105 660 80 577 89 924 CaSH and BanK BaLanCeS 21 49 14 889 27 6 575

Total current assets 123 861 162 325 108 275 133 752

TOTAL ASSETS 320 411 325 344 276 725 278 559

BALANcE shEET TsEK

WIBAX • 15

Group parent Company

note 2011-12-31 2010-12-31 2011-12-31 2010-12-31

eQuIty and LIaBILItIeS eQuIty 18 restricted equity Share capital (12,000 shares) 1 200 1 200 1 200 1 200Statutory reserve 0 0 240 240restricted reserves 59 890 49 841 0 0 61 090 51 041 1 440 1 440

non-restricted equityprofit/loss brought forward 18 232 14 165 19 230 21 061profit/loss for the year 15 713 19 115 3 285 3 169 33 945 33 280 22 515 24 230

Total equity 95 035 84 321 23 955 25 670

untaXed reServeS 19 accumulated additional depreciation 0 0 52 886 44 025tax allocation reserves 0 0 14 700 14 800 0 0 67 586 58 825provISIonS provisions for deferred tax 22 970 18 514 1 683 814Total provisions 22 970 18 514 1 683 814

LonG-term LIaBILItIeS Bank overdraft facilities 21 5 047 0 11 684 0other liabilities to credit institutions 20 77 923 65 786 66 626 60 366Total long-term liabilities 82 970 65 786 78 310 60 366 Current LIaBILItIeS Liabilities to credit institutions 14 563 12 497 10 673 10 740advance payments from customers 2 051 0 75 0accounts payable - trade 26 228 58 471 17 989 50 191Liabilities to Group companies 0 0 12 721 2 876Current income tax liability 0 1 553 0 24Factoring credit 21 54 190 66 744 53 516 62 169other current liabilities 8 488 5 304 5 239 2 182accrued expenses and prepaid income 22 13 916 12 154 4 978 4 702Total current liabilities 119 436 156 723 105 191 132 884 TOTAL EQUITY AND LIABILITIES 320 411 325 344 276 725 278 559

memorandum ItemS tSeK

pLedGed aSSetS For own liabilities to credit institutions real estate mortgage 57 140 48 000 57 140 48 000Floating charges 62 855 53 225 50 000 50 000assets with reservation of title 19 001 9 581 0 0pledged accounts receivable 81 109 92 554 77 138 86 246Total securities 220 105 203 360 184 278 184 246

ContInGent LIaBILItIeS rural aid, conditions for repayment 66 165 66 165Total contingent liabilities 66 165 66 165

16 • WIBAX

Group parent Company

2011-12-31 2010-12-31 2011-12-31 2010-12-31operatInG aCtIvItIeS payments from customers 530 118 438 249 453 178 401 896payments to suppliers and employees -502 217 -408 882 -433 904 -379 424Interest received 430 97 357 81Interest paid -8 060 -5 191 -7 320 -4 905Group contribution received 0 0 3 400 500paid income tax -3 058 -6 338 -1 596 -5 626 Cash flow from operating activities 17 213 17 935 14 115 12 521

InveStInG aCtIvItIeS acquisition of land and buildings -20 839 -7 111 -20 839 -7 111acquisition of plant and machinery -17 388 -44 225 -5 182 -33 606acquisition of equipment, tools, fixtures and fittings -2 393 -1 866 -1 271 -1 337Sale of equipment, tools, fixtures and fittings 737 643 262 443Loss on disposal of machinery 212 296 225 0acquisition of construction in progress -6 734 -5 702 -6 734 -5 702 Sale of associated companies 101 0 0 0

Cash flow from investment operations -46 304 -57 965 -33 539 -47 313 FInanCInG operatIonS Long-term borrowings 19 251 28 700 17 877 34 134dividend paid -5 000 -5 000 -5 000 -5 000 Cash flow from financing operations 14 251 33 700 12 877 29 134 Cash flow for the year -14 840 -6 330 -6 548 -5 657 Liquid funds at beginning of year 14 889 21 219 6 575 12 232 Liquid funds at year end 49 14 889 27 6 575

cAsh fLOW ANALysis TsEK

WIBAX • 17

GENErAL ACCOUNTING PrINCIPLES

the annual accounts have been prepared in accordance with the Swedish annual accounts act and the general advice of the Swedish accounting Standards Board. the Group contribution is reported on the income statement regardless of the underlying transaction.

CLaSSIFICatIonFixed assets, long-term liabilities and provisions es-sentially only consist of amounts that are expected to be recovered or paid after more than twelve months, calcu-lated from the balance sheet date. Current assets and current liabilities essentially only consist of amounts that are expected to be recovered or paid within twelve months, calculated from the balance sheet date.

vaLuatIon prInCIpLeS etC.assets, provisions and liabilities have been valued at their acquisition value, unless otherwise stated below.

LeaSInGthe Swedish accounting Standards Board’s advice BF-nar 2000:4 on the accounting of leasing agreements are applied. all leasing agreements are reported as opera-tional in accordance with these rules.this means that the leasing fee is written off in the in-come statement linearly over the leasing period.

IntanGIBLe and tanGIBLeaSSetStangible assets are reported at their acquisition value less accumulated depreciation and possible write-downs. Land does not depreciate. Straight line deprecia-tion takes place on depreciable amounts (the acquisition value less the calculated remaining amount) during the lifetime of the asset, according to the following:

product rights 5 years

Land and buildings 20-25 years

plant and machinery 7-20 years

equipment, tools, fixtures and fittings 4-7 years

the difference between depreciation according to plan and booked depreciation is reported as appropriations.

InventorIeSthe inventory has been valued using the lowest value prin-ciple, i.e. either the acquisition value or the actual value, whichever is the lowest. In determining the acquisition value, the FIFo (first-in-first-out) principle is applied.

reCeIvaBLeSreceivables are reported at the lesser of either the nom-inal value or the amount at which they are estimated to be received.

reCeIvaBLeS and LIaBILItIeS In ForeIGn CurrenCyreceivables and liabilities in foreign currency have been calculated using the exchange rate as at the balance sheet date.

LIQuId FundSLiquid funds include cash and bank balances.

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

aCQuISItIon aCCountInGthe group accounts have been prepared in accordance with the Swedish Financial accounting Standards Coun-cil’s recommendations regarding group accounts. all company acquisitions have been reported in line with acquisition accounting. untaxed reserves are reported in the individual group companies, divided in the group bal-ance sheet into a capital portion and a tax portion. the capital portion has been supplied to restricted reserves. the tax portion is reported as provisions under the head-ing deferred tax Liability.

rentaL InComerental income for buildings held for investment purpos-es is reported on a linear basis in accordance with the conditions stated in the applicable rental agreement.

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

AccOUNTiNg PRiNciPLEs AND NOTEs TO ThE fiNANciAL sTATEMENTs

18 • WIBAX

note 1 otHer operatInG InCome 2011 2010Group exchange gains 16 411 16 305rental income 4 531 7 381other 484 10 292Total 21 426 33 978 parent Companyexchange gains 14 841 15 706rental income 8 455 7 381other 319 12 546Total 23 615 35 633

note 2 FeeS and eXpenSeS remuneratIon to audItorS

2011 2010Group ernst & young audit assignment 152 105auditing activities besides audit assignment 0 0tax advice 7 0other services 30 70Total 189 175 parent Company ernst & young audit assignment 89 75auditing activities besides audit assignment 0 0tax advice 7 0 other tasks 30 50Total 126 125

note 3 LeaSInG aGreementS 2011 2010Group assets held through operational leasing agreements during the year, the company’s leasing expenses amounted to 8 332 5 549agreed future leasing fees 24 174 17 838 parent Company assets held through operational leasing agreements during the year, the company’s leasing expenses amounted to 1 453 1 137agreed future leasing fees 2 745 2 468

note 4 empLoyeeS and perSonneL eXpenSeS

averaGe numBer oF empLoyeeS 2011 2010

parent Company men 36 39Women 10 8Total in parent company 46 47 SuBSIdIarIeS men 75 57Women 14 10Total in subsidiaries 89 67 Group total 135 114

NOTEs

WIBAX • 19

Gender dIStrIButIon WItHIn Company manaGement 2011 2010 proportion of proportion of women as a % women as a % parent Company Board of directors 0 0other company officers 0 0

SaLary, otHer remuneratIon and payroLL overHead CoStS 2011 2010parent Company Board of directors and managing director 2 083 1 812other employees 16 826 14 242Total 18 909 16 054payroll overhead costs 7 613 6 453(of which pension costs) 1) 1 498 1 333 SuBSIdIarIeS Board of directors and managing director 633 783other employees 32 939 24 762Total 33 572 25 545payroll overhead costs 12 098 9 802(of which pension costs) 1 573 1 280 GroupBoard of directors and managing director 2 716 2 595other employees 49 765 39 004Total 52 481 41 599payroll overhead costs 19 711 16 255(of which pension costs) 2) 3 071 2 613 1) of the parent company’s pension costs, 189 (prev. yr. 193) refers to company management in respect of 2 (2) people. 2) of the Group’s pension costs, 361 (prev. yr. 355) refers to company management in respect of 3 (3) people.

SICKneSS aBSenCe 2011 2010

total sickness absence as a proportion of normal working hours 1,4% 2,4% proportion of the total sickness absence that refers to related sickness absence of 60 days or more 0% 0% Sickness absence per gender: men 1,3% 1,7% Women 1,6% 5,5% Sickness absence per age category: 29 or under 0,5% 1,6% 30-49 years 1,7% 3,2% 50 or above 1,1% 0,3% the total sickness absence is stated as a percentage of the employees’ combined normal working hours. Long-term sickness absence is the proportion of sickness absence that relates to absence over a combined length of 60 days or more.

the total working hours have been defined as the working hours according to the collective agreement or other agreement with the employees. Holiday absence and sabbaticals are not included in ordinary working hours.

20 • WIBAX

note 5 otHer operatInG InCome 2011 2010Groupexchange losses 17 327 15 792other 634 390Total 17 961 16 182 parent Companyexchange losses 15 733 14 963other 403 94Total 16 136 15 057

note 6 IntereSt eXpenSe and SImILar proFIt/LoSS ItemS

2011 2010Group Interest expenses, other 6 856 3 352other 1 203 1 839 8 059 5 191parent CompanyInterest expenses, other 6 235 3 140other 1 085 1 765 7 320 4 905

note 7 depreCIatIon oF tanGIBLe and IntanGIBLe aSSetS 2011 2010Group product rights 225 225Buildings 1 440 1 142machinery 9 915 7 912equipment 1 193 960 12 773 10 239parent Companyproduct rights 225 225Buildings 1 440 1 142machinery 7 429 6 339equipment 803 731 9 897 8 437

note 8 purCHaSeS and SaLeS BetWeen Group CompanIeS 2011 2010Group parent company sales in respect of Group companies 9 455 7 973parent company purchases in respect of Group companies 78 982 83 408

note 9 approprIatIonS 2011 2010

Group contribution received 3 400 500Changes in additional depreciation -8 860 -12 267tax allocation reserve, annual provision -500 0tax allocation reserve, annual cancellation 600 500Total -5 360 -11 267

note 10 taX on annuaL proFIt/LoSS 2011 2010Group Current tax 1 435 2 734deferred tax 4 455 4 354 5 890 7 088parent CompanyCurrent tax 570 992deferred tax 869 576 1 439 1 568

WIBAX • 21

note 11 produCt rIGHtS

PArENT GrOUP COmPANYaccumulated acquisition value:-at beginning of year 1 125 1 125 1 125 1 125accumulated additional depreciation-at beginning of year -900 -900-annual depreciation according to plan -225 -225 -1 125 -1 125 reported value at end of year 0 0

note 12 Land and BuILdInGS PArENT GrOUP COmPANYaccumulated acquisition value:-at beginning of year 56 427 56 427-new acquisitions 20 839 20 839-disposals -78 -78-reclassifications 5 702 5 702 82 890 82 890accumulated additional depreciation-at beginning of year -7 228 -7 228-annual depreciation according to plan -1 440 -1 440 -8 668 -8 668 reported value at end of year 74 222 74 222

note 13 pLant and maCHInery PArENT GrOUP COmPANYaccumulated acquisition value:-at beginning of year 148 973 118 224-new acquisitions 17 388 5 182-disposals -2 764 -1 612 163 597 121 794accumulated additional depreciation-at beginning of year -44 339 -31 510-annual depreciation according to plan -9 914 -7 428-disposals 2 011 1 099 -52 242 -37 839

reported value at end of year 111 355 83 955

note 14 eQuIpment, tooLS, FIXtureS and FIttInGS PArENT GrOUP COmPANYaccumulated acquisition value: -at beginning of year 7 536 5 932-new acquisitions 2 393 1 271-disposals -1 296 -991 8 633 6 212accumulated additional depreciation-at beginning of year -4 377 -3 556-disposals 1 076 991-annual depreciation according to plan -1 193 -803 -4 494 -3 368

reported value at end of year 4 139 2 844

22 • WIBAX

note 15 ConStruCtIon In proGreSS

PArENT GrOUP COmPANY

at beginning of year 5 702 5 702reclassifications -5 702 -5 702annual investments 6 734 6 734

reported value at end of year 6 734 6 734

note 16 SHareS In Group CompanIeS

2011 2010accumulated acquisition value: -at beginning of year 591 591-purchases 104 0 reported value at end of year 695 591 SpeCIFICatIon oF parent Company’S HoLdInG oF SHareS and partICIpatIonS In Group CompanIeSthis refers to the participating interest in the capital, which is also in agreement with the number of votes for the total number of shares. reportedSubsidiaries / Corp. Id. no / Headquarters equity profit/loss for the year in % value

WIBaX Logistics aB, 556375-5080, piteå 10 065 1 775 100 220WIBaX tech aB, 556499-9257, piteå 312 61 100 143Wibax energy aB, 556547-9705, piteå 1 177 75 100 228Wibax Industrial aB, 556346-1747, piteå 571 468 100 104 695

note 17 prepaId eXpenSeS and aCCrued InCome

PArENT GrOUP COmPANY accrued transport support 366 366other 3 403 1 610 3 769 1 976

note 18 eQuIty

Share capital restricted reserves non-restricted reservesGroupClosing balance according to the previous years’ balance sheet 1 200 49 841 33 280adjustment between restricted and non-restricted reserves 10 049 -10 049dividend -5 000profit/loss for the year 15 713at year end 1 200 59 890 33 945

Share capital Statutory reserve non-restricted equityparent CompanyClosing balance according to the previous years’ balance sheet 1 200 240 24 230dividend -5 000profit/loss for the year 3 285at year end 1 200 240 22 515

note 19 untaXed reServeS

2011 2010tax allocation reserves:tax allocation reserve tax 2006 600tax allocation reserve tax 2007 2 000 2 000tax allocation reserve tax 2008 1 900 1 900tax allocation reserve tax 2009 4 200 4 200tax allocation reserve tax 2010 6 100 6 100tax allocation reserve tax 2011 500 0accumulated additional depreciation 52 886 44 025Total 67 586 58 825

WIBAX • 23

note 20 LonG-term LIaBILItIeS due date

PArENT GrOUP COmPANY

due date, within one year from balance sheet date 14 563 10 673due date, 1-5 years from balance sheet date 44 353 33 279due date, more than five years from balance sheet date 33 570 33 347 92 486 77 299

note 21 CredIt Granted

Bank overdraft facilitiesthe granted amount of bank overdraft facilities in the Group amounts to mSeK 21.3 (mSeK 13.3), and in the parent company to mSeK 21.3 (mSeK 13.3).

Factoring creditthe granted amount of factoring credit in the Group amounts to mSeK 110 (mSeK 110), and in the parent company to mSeK 100 (mSeK 100).

note 22 aCCrued eXpenSeS and prepaId InCome

PArENT GrOUP COmPANY

personnel-related liabilities 12 044 4 090prepaid rental 594 594other 1 278 294 13 916 4 978

piteå, 12.03.2012

anders Snell Bo Wiklund thomas SundqvistChairman of the Board Board member managing director

rolf Back Håkan Jöves Jan Board member Board member

my audit report was submitted on 13.03.2012

Curt marklundapproved public accountant Far/SrS

24 • WIBAX

REPORT ON ThE ANNUAL AccOUNTs AND ThE gROUP AccOUNTs

I have audited the annual accounts and the group accounts for Wibax AB for the period 01.01.2011 – 31.12.2011.

The Board of Directors’ and the Managing Director’s responsibil-ity for the annual accounts and the group accounts

The Board of Directors and the Managing Director are responsible for preparing annual accounts and group accounts that give a true and fair view in accordance with the Swedish Annual Accounts Act, as well as for the internal checks that the Board of Directors and the Managing Director deem necessary to prepare annual accounts and group accounts that are free from material misstatement, irrespective of whether this is due to irregularities or errors.

ThE AUDiTOR’s REsPONsiBiLiTyMy responsibility is to express my opinion on the annual accounts and the group accounts based on my audit. I have conducted the au-dit in accordance with the International Standards on Auditing and generally accepted auditing standards in Sweden. These standards require that I comply with demands for professional conduct and carry out the audit in order to achieve reasonable assurance that the annual accounts and group accounts are free from material misstate-ment.An audit entails obtaining audit evidence through various measures regarding amounts and other information in the annual accounts and group accounts. The auditor selects which measures are to be carried out, for example by assessing the risks of material misstate-ment in the annual accounts, irrespective of whether these are due to irregularities or errors. During this risk assessment, the auditor gives consideration to those aspects of the internal checks that are of relevance to the way the company prepares the annual accounts and group accounts, in order to give a true and fair view with the aim of formulating auditing measures that are appropriate bearing in mind the circumstances, although not with the aim of making a pro-nouncement on the effectiveness of the company’s internal checks. An audit also includes an evaluation of the appropriateness of the accounting principles that have been used, and of the reasonableness of the Board of Directors’ and the Managing Director’s estimates in the accounts, as well as an evaluation of the overall presentation of the annual accounts and the group accounts. I consider that the audit evidence I have gathered is sufficient and appropriate to provide grounds for my opinion.

OPiNiONIn my opinion, the annual accounts and the group accounts have been prepared in accordance with the Swedish Annual Accounts Act, and in all essential respects they provide a true and fair view of the parent company’s and the Group’s financial position as at 31 De-cember 2011 and of their financial results and cash flows for the year according to the Swedish Annual Accounts Act. The administration report is in agreement with the other sections in the annual accounts and group accounts. I therefore recommend to the general meeting of shareholders that the income statement and the balance sheet for both the parent com-pany and the Group be adopted.

REPORT ON OThER REQUiREMENTs AccORDiNg TO LAWs AND OThER sTATUTEs

In addition to my audit of the annual accounts and the group ac-counts, I have also audited the proposed allocation of the company’s profit or loss, as well as the Board of Directors’ and the Managing Director’s administration of Wibax AB for the period 01.01.2011 – 31.12.2011.

The Board of Directors’ and the Managing Director’s responsibility

The Board of Directors is responsible for the proposed allocation of the the company’s profit or loss, and the Board of Directors and the Managing Director are responsible for the administration of the com-pany in accordance with the Swedish Companies Act.

ThE AUDiTOR’s REsPONsiBiLiTyMy responsibility is, with reasonable assurance, to express my opin-ion on the proposed allocation of the company’s profit or loss, as well as on the administration of the company, based on my audit. I have carried out the audit in accordance with generally accepted auditing standards in Sweden.

As a basis for my opinion concerning the Board of Directors’ pro-posed allocation of the company’s profit or loss, I have examined the Board’s reasons as well as a selection of the evidence supporting these, in order to assess whether the proposal is in agreement with the Swedish Companies Act.

As a basis for my opinion concerning discharge from liability, I have, in addition to my audit of the annual accounts and the group ac-counts, examined significant decisions, actions taken and circum-stances of the company in order to be able to determine the liability, if any, to the company of any Board Member or the Managing Direc-tor. I also examined whether any Board Member or the Managing Director has, in any other way, acted in contravention of the Swedish Companies Act, the Swedish Annual Accounts Act or the Articles of Association. I consider that the audit evidence I have gathered is sufficient and appropriate to provide grounds for my opinion.

OPiNiONI recommend to the general meeting of shareholders that the profit be dealt with in accordance with the proposal in the administration report and that the Members of the Board of Directors and the Man-aging Director be discharged from liability for the financial year.

AUDiT REPORT

To the annual general meeting of Wibax ab Corporate Identity Number 556262-9674

Piteå, 13.03.2012

Curt MarklundApproved Public Accountant FAR/SRS

WIBAX • 25

BOARD Of DiREcTORs fOR WiBAX gROUP

anderS SneLLChairman of the Board since 2011mSc engineeringSenior development manager – Billerud, Chairman of the Board, ÅForSK Board member Ångpanneföreningenprevious employment:technical director, assi domän; technical director, BillerudLocal manager, Gruvöns Bruk, Skärblacka Bruk, Karlsborgs Brukmanaging director, Grycksbo, norrsundet Bruks aBproduction manager and Industrial engineer, Skutskärsverken

HÅKan JöveSBoard member since 2005B.Sc., m.Sc.previous employment:director of r&d, Korsnäs aB

roLF BaCKBoard member since 1995phd (econ.)previous employment: a number of md positions, including ahlsell, Åhlens and Wasa Försäkringar.research manager GI – IHr, Stockholm universityprofessor, Luleå university of technologyBoard member of Iva and Chairman of the Board of noak

Bo WIKLundBoard memberengineerFounder and ownerowns 100% of shares in the WIBaX Group

Jan rInGStrömBoard member since 2011, Chairman of the Board 1995 - 2010mSc engineeringprevious employment:Local manager, ncb dynäsmanager, Sack paper division, ncb dynäsmanager, Sack paper and packaging, ncbdeputy vd ncb aBtechnical director and Senior advisor, assidomän Kraft products

26 • WIBAX

MANAgEMENT gROUP

annICa petterSSon eIron JoHanSSon Human resources director Controller

tHomaS SundQvISt Bo WIKLund JonaS WIKLundmanaging director, Group Founder, owns 100% managing director, WIBaX Logistics aB deputy managing director, Group

tomaS SandStröm andreaS WIKLundpurchasing director, production directorenvironment & Quality director

HEAD OFFICE: Batterigatan 12, SE-941 47 Piteå · Tel switchboard. +46(0)911- 250 200 · Fax +46(0)911-250 299

www.wibax.se

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