Partex annual 2010_110817

partex marking systems abannual report 2010

2 Partex Marking Systems AB 3Partex Marking Systems AB

In 2009 we at Partex chose to put together our first ever Annual Report. The initiative

was well received and we have therefore decided to continue the concept and this is the result; Partex Annual Report for 2010.For those of you who are not familiar

with Partex, we are a family company in the third generation. Our headquarters are

in Gullspång, Sweden, in the same location as where it all started over 60 years ago. We

at Partex are specialists in industrial marking systems. We produce products for the identification of cables, wires, pipes and components. The Partex Group comprises the Swedish parent company and five, wholly owned, subsidiaries. These are located in Germany, the UK, France, USA and Poland. In addition to the Partex Group, Partex is also represented all over the world through our distributors. The Group itself has 130 employees and in 2010 we had a turnover of 155 million SEK.

2010 was a successful year for Partex, a year that came to be about personnel and development (both organizational and technical). We hired new personnel to several key positions and we put a number of exciting projects in motion, that we are confident will bear fruit in the near future. In the coming pages we will try to give you an overview of, not just Partex as the organization that it is today, but our history and the vision of what the future has to offer. We hope that you will find this annual report both interesting and rewarding.

2005 2006 2007 2008 2009 2010

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TURNOVER PARTEX GROUP (TSEK)

welcome to partexcontents

3 Welcome to Partex

4 The year in brief

5 To our stakeholders

6 Our business Business idea Vision Mission Guiding principles Owners directives

7 Organization

8 Products

9 Environmental work

10 History

11 The Partex group

12 Subsidiaries

14 Director’s report

15 Five year summary Parent Company and Group

17 Group income statement

18 Group balance sheet

21 Parent Company income statement

22 Parent Company balance sheet

24 Cashflowstatement

26 Notestothefinancialstatement

36 Audit report

38 Managing Director, Board of Directors and Owners


the year in brief

Dining with the SweDiShCrown PrinCeSS CouPle

October 21 Partex participated in a dinner with the Swedish Crown Princess couple. It was count

governor Lars Bäckström who, together with his wife Ann-Christin, held a dinner party for 30 exclusively

selected guests in honor of the Crown Princess. As gift to the Crown Princess couple Partex gave a pair of exclusive set of pencils, marked with Partex customized multi-character markers.

new ChAirMAn oF the BoArD oF DireCtorSIn December Partex announced that Martin Lundstedt,

Executive Vice President and head of Franchise and Factory Sales at Scania, will take over as Chairman of the Board of Directors from January 1st. Martin succeeds TorBjörn Lööf who will revert to be a regular

member of the Board.

to our stakeholders

2010 has been a very successful year, both on the domestic and the international markets. Partex produced a strong result for the year. We have made new customers and increased our market shares in most markets. At the same time, we have reached a positive operating profit of 14 percent, before depreciation, for the Group. In our domestic market we have seen a stable upswing after the financial crisis in many important sectors. The market as a whole has had a strongly positive development over the year. When we summarize 2010, we are proud to point out a new sales record for the domestic market. In the international market 2010 was also a successful year, building on the growth in 2009 with continued success, particularly in markets like India. Generally we see good opportunities for development and growth for the Partex Group. This can be said both for mature markets where our business is well established, and in emerging markets where we are not as well known. We offer niche products that stand tall even in the toughest of global competition and we will continue to develop new and improved products and solutions. Also, we have the power, competence and the resources to acquire any suitable company that looks to fit into the Partex family. Partex are well prepared for the future, and I would like to bring focus to our dedicated, skilled and loyal employees. Our personnel are the key to our success and we will, during the coming year, focus on the recruiting of additional key personnel. Meanwhile our investment in preventive wellness continues, and we can see the result of our work in a very low sick leave levels.

PrePArAtionS For lAunCh oF new MArKing MAChineDuring the last quarter of 2010 the planning and preparations of 2011’s big product project, MK9-USB was made. MK9-USB is the 3rd generation ProMark, a portable marking machine with direct USB 2.0 connection to your PC.

Former Chairman of the Partex Board of Directors, TorBjörn Lööf stepped down in January 2011 and is now a regular member of the Board. The new Chairman is Martin Lundstedt, Vice President and head of Franchise and Factory Sales at Scania. With his experience from Scania, both in Sweden and abroad, Martin will contribute with knowledge and know-how to help Partex to develop even further. Finally, I would like to thank everyone for a great job 2010. I look forward to 2011, a new, exiting, year with challenges and new opportunities.

Sophie Lööf-MårtenssonMarket- & PR-Manager and Vice President

4 Partex Marking Systems AB


During 2010 we have put a lot of effort in strengthening our organization by employing several new key competences to our company. Among others, we have employed a new R&D Manager and a HR-Manager. Below is a short view on our organisation and our future to come from a couple of fresh Partex eyes...

r&D MAnAger Peter riSBerg2010 has been a busy year for the R&D department. Focus was set on strategic work concerning future products and production techniques. We see our competitors advance on the market and it is therefore important that we stay in our rightful place at the head of the pack. Many market areas are setting higher and higher demands on their markings. Partex products have historically always been good at meeting these demands and, we shall continue to meet and, aim to exceed, our customers’ expectations. This shall be done by continuously focusing on product improvements in usability and value for money while, all the time, being mindful of the environmental implications of our work. In the coming years this strategic work will lead to an increased service level and a higher flexibility towards our customers. In conclusion, Partex is an experienced and skilled organization that allows us to look forward the future with confidence.

our business organization

Owners TorBjörn Lööf and Sophie Lööf-Mårtensson

ViSionOur vision is that with

Partex you have safer and faster identification.

Partex shall have the best customer orientedsystemswithinthefieldof

identification.Partex standardized assortment shall, from every aspect, be the wholesaler’s

firstandbestchoice.Partex shall operate all over the

world.

guiDing PrinCiPleS

Customer focus high service and availability.

Quality & professionalismpermeate how we think and act.

inquisitivenesswe explore new opportunities.

Family companywe enjoy a familial atmosphere and a

sense of community.

Joywe enjoy and have

fun at work

ownerS DireCtiVeS

”Owning family-run companies brings

us joy, pride and a sense of purpose. With our

heart in Gullspång, Sweden, we want to be a global

player that invests in new customers and markets. We

strive to take a long-term approach and aim to hand a

healthy enterprise down to the next generation.

We want to be perceived as responsible and committed

owners who foster the wellbeing and development of

our companies and our personnel. High quality

and professionalism permeate everything

we do.”.

MiSSion

Minimize risk of accidents, interruptions and disturbances in facilities, vehicles and equipment

through safe and user friendly marking systems that minimize the risk for

errors in installation, mounting, usage, maintenance and repairs.

Partex, for safer working.

BuSineSS iDeA

” Partex shall, with a high level of customer

focus and customer service, offer first-rate industrial

marking systems and services.”

hr-MAnAger JoSeFine StÅhlBerg2010 Partex has worked with many different topics within the HR theme. Different processes for e.g. recruitment, rehabilitation, salary and benefits has been enlightened and documented. We have also worked active with the already started work of fitness activities for preventive health care. One important issue for the future is to ensure the right competences to Partex, and an analysis for this will be done in the fall of 2011. To maintain commitment, focus and motivation for our employees is founded in understanding for the companies’ strategies and goals. We will therefore keep working with staff empowerment, division meetings and goals at division as well as individual level.

6 Partex Marking Systems AB

r&DPeter

Risberg

QuAlity & enVironMent

HenrikGustavsson

ACting MDBengt-Göran Bengtner

ProDuCtionKrister

Karlsson

SAleSLennart

Anderdahl

hrJosefine

Ståhlberg

eConoMy & ADM.Margareta

Aldin

itAnders

Bengtsson

MArKetingSophie

Lööf-Mårtensson

PArtex ltDPeter

Symonds

PArtex gMBhMartin

Gudowius

PArtex S.ALaurent Poingt

PArtex inC.JanetTorres

PArtex SP. zo. o.DariuszCwik


products

Partex strive to offer the market’s most flexible and complete marking systems. We have therefore developed these three general systems that allow us to present our wide range of solutions; single-character markings, multi-character markings and on-site marking systems. The single-character system consists of many markers, all containing only one character, number or symbol. The installer combines the markers that he needs in order to create the right marking information. This is a highly flexible system, giving the installer absolute control. The system is at its best when a short and simple marking is used. With the multi-character system you send us computer files of what marking you require for a specific project. We produce the marking your requirements and write the complete marking information on each marker. This means that fewer markers are needed for the installation and the installers work is heavily reduced. Our last system, on-site marking systems, means that the customer himself writes the text on the marker. Equipped with one of the Partex marking machines, software and profile, the installer decides himself when, where and how he wants to produce his markers.

environmental work

Partex strive to reduce consumption of commodities and energy. We aim to achieve this by operating an on-going environmental policy. The policy states that Partex shall seek to minimize any negative effects on our environment.In order to reach our environmental goals the following guiding principles have been established:

• Ourenvironmentalinvestigationshallbethe foundation for environmental goals and programs.

• Ourproductsandproductionequipmentshall be optimized regarding recycling, material choice, production methods and energy conservation.

• Workwithenvironmentalconscioussuppliers and partners.

• Aimtooptimizetheconsumptionofenergy and raw materials.

• Intend, where possible, to prevent or at least minimize pollution of the environment.

• Worktowardscontinuousimprovements by maintaining and developing our environmental goals.

• Educateandengageallemployeesinour environmental work.

notiFiABle ACtiVitieSPartex is conducting notifiable activities and has permission to produce marking systems through extrusion of max. 200 ton PVC, 5 ton Polyether based Polyurethane Compound and 2 ton of stainless steel per year. Partex is actively looking for a replacement material for PVC it can be replaced to equal amount. The waste of mentioned material is ground and sold for recycling. Other waste, from the whole company, is sorted in specific containers according to given instructions.



history

1948 Elektro-Lööf is founded by Tore and Ingegerd Lööf.

The first product is a new, innovative, terminal block.

1951 The first marker sleeve, the PX sleeve, is launched.

1956 Partex’s best-seller, the PA, is patented in large parts of the world.

1962 The first customized marking system is announced.

1973 In connection with the 25 years anniversary Elektro-Lööf changes name to Partex Fabriks AB.

1987 TorBjörn Lööf, son of the founder, is appointed Managing Director.

1991 Subsidiary in the UK is acquired.

1993 Subsidiary in Germany is founded.

1999 Subsidiary in Poland is founded. Subsidiary in France is acquired.

2001 Subsidiary in USA is founded.

2003 TorBjörn Lööf acquires 100 per cent of all Partex’s shares.

2008 Partex celebrates 60 years anniversary.

TorBjörn Lööf becomes Executive Chairman of the Board of Directors.

Ulf Sundberg is announced Managing Director.

Sophie Lööf-Mårtensson becomes part owner and announced Vice President.

PX,thefirstmakersleeve

HeadofficeinGullspång

Founder Tore Lööf

the partex group

The Partex Group contains of the Parent Company and five wholly owned subsidiaries:

Company turnover employees Managing Director history

Partex Marking Systems AB SEK 72 million 66 Bengt-Göran Bengtner Founded 1948

Sweden, Gullspång

Partex Marking Systems (uK) ltD SEK 52 million 27 Peter Symonds Acquired 1991

United Kingdom, Birmingham

Partex Marking Systems gmbh SEK 14 million 8 Martin Gudowius Founded 1993

Germany, Stuttgart

Partex Marking Systems Sp. zo. o SEK 23 million 14 Dariusz Cwik Founded 1999

Poland, Lubicz

Partex S.A. SEK 15 million 8 Laurent Poingt Acquired 1999

France, Marolles en Brie

Partex Marking Systems inC. SEK 4 million 3 Janet Torres* Founded 2001

USA, Elmhurst, Illinois

* Branch Manager

Subsidiary

Distributor

H

Export 66% Sweden 34%

*Internal sales included



subsidiaries

PArtex S.A.

After relative stagnation in 2009 due to the general

recession, Partex France’s activity is progressing

again in 2010 with a turnover of €1538000, increased

by more then 30 per cent compared to 2009. This was

achieved thanks to a maximum quality of service and

the reinforcement of their sales and administration

teams.

In addition to the sales promotion in France,

Partex France is also in charge of distributing Partex

products in North Africa and the progression of

sales in these countries is very interesting.

Thanks to new products, such as the MK9

printer and the MK10/MK10-DH printer, we

expect further progression in 2011.

The year 2011 is marked by Partex

France to establish our products in

the railway industry and to provide an

alternative to the old players in this sector.

The reinforcement of the sales team is also

one of the company’s priorities. Finally the

French subsidiary expects much of the Research

and Development Department to provide customers

with products and services which are more useful

and innovative.

Partex Marking Systems inC.

2010 was a year of great challenges for Janet

Torres, Branch Manager at Partex USA. The company

struggled with the failing economy and recession in

the USA. In the end of 2010 the company hired a

new sales person, Gary Rushton, who hopefully will

contribute to rising sales over the next couple years.

With the strengthen sale force and indications

Partex Marking Systems Sp. zo. o

Partex Poland managed to rebuild their sales after

the drop of 2009 and had a very good year with both

profitandsales.Theybeattheirformersalesrecord

of 2008 and ended on an “all-time high” sales record.

Part of the success was the extension of their product

range. Partex Poland can now offer engraved plates

to their customers, a project that showed to be a

great success.

For 2011 the goal of Partex Poland is to continue

their growth, both abroad and on the domestic

market. To be able to do so, they plan to develop

their M2 production,

and also to expand

the premises if

necessary.

Partex Marking Systems gmbh

2010 was a really good year for Partex

GmbH. The German economy had a

great recuperation and the company

succeeded with taking its share of

the growing market, showing an

all-time high turnover.

All the company’s areas of

business showed higher numbers

than in 2009, but customized

marking and on-site market

systems are worth special mention.

Both had a growth of over 60 percent.

The export side of the business has had a

continuously great development over 2010,

with exports to Austria growing over 240 percent!

In 2010 Partex GmbH expects continued recovery

of the German economy, albeit slowly. Partex GmbH

also sees a trend of increased interest in customized

markings and will need to look at the opportunities to

expand their production.

In conclusion the MD of Partex GmbH, Martin

Gudowius,looksat2011withgreatconfidence.

Partex Marking Systems (uK) ltd.

Partex UK enjoyed a highly successful 2010 with

turnoverover50millionSEKandarecordnetprofit

realized. This was achieved despite the economic

situation in the UK where the threat of a ‘double-

dip’ recession is still over the country. During the

year there was a global shortage of Polyamide 6.6.

This forced Cable Tie suppliers to increase their

prices several times during the year and there

was panic in the market place with companies

seeking to buy cable ties wherever they

could. Fortunately, by the end of the year

there were signs that the supply problem

was gradually being resolved.

2010 saw the completion of the

extension and renovation of the Partex UK

premises which now has more than 25,000

sq ft of warehouse and office space. This

also includes a new dedicated production area

for producing customized markers to meet the

evolving demands of the UK market.

The portents for 2011 are good although it

remains to be seen what effect the Public Sector cuts

planned by the new coalition government has on the

fragile recovery of the UK economy. Whatever may

come its way, the employees of Partex UK are ready

to meet the challenge head on to ensure that all of

their customers receive high quality products backed

upbyfirstclassserviceatareasonableprice.

that USA will start to

recoverfinanciallyJanet

looks forward to 2011.

The company is already

booked for exhibit at 5 trade shows

next year, and the new salesman works hard with

visiting existing customers and prospecting new ones.



2010 2009 2008 2007 2006groupNet sales 154 556 128 377 139 718 127 981 109 925Profitafterfinancialitems 22017 9635 25871 22499 10626Total assets 111 374 98 214 94 409 80 642 62 360Operating margin 14,2% 7,5% 18,5% 17,6% 9,7%

Parent companyNet sales 68 370 57 728 62 404 55 007 48 296Profitafterfinancialitems 9595 1994 8034 10561 3732Operating margin 14,0% 3,5% 12,9% 19,2% 7,7%Total assets 65 398 57 500 58 878 56 173 49 649Solidity (%) 72,4% 75,4% 77,3% 79,3% 80,5%Return on equity (%) 21,2% 4,6% 17,7% 23,7% 9,3% Fordefinitionsofkeyratio,seeNote21

ProPoSeD AlloCAtion oF inCoMe: Available for disposition by the Annual General Meeting: Profitbroughtforward 29915Group contribution -800Tax effect of Group contribution 210 Profitfortheyear 7469 total 36 794 The Board of Directors and the Managing Director propose that the account be allocated as follows: To be paid as dividend to the shareholders 9 000 To be carried forward 27 794 total 36 794

Proposal for decision of dividend profit distribution Proposed dividend reduces the company’s solidity to 68,0%. Given that the company’s business is continuously carriedoutwithprofitabilitythissolidityissatisfying.Theliquidityisconsideredtobemaintainedatasimilarsatisfactory level.

TheBoardbelievesthattheproposeddividendwillnotpreventthecompanyfromfulfillingitsobligationsintheshort or long term, nor prevent the company from doing necessary investments. The proposed dividend can be justifiedwithreferencetothewhatisstatedinABL;Chapter17,Section3,§2-3.(precautionaryprinciple).

five year summary parent company and group(ksek)

The Board of Directors and the Managing Director of Partex Marking Systems Aktiebolag hereby present the annual report for the financial year 2010-01-01 - 2010-12-31.The annual report is in KSEK.

the BuSineSS in generAl

PartexMarking SystemsAB is the parent company of thewholly owned subsidiaries PartexAB,PartexMarkingSystems(UK)Ltd,PartexMarkingSystemsGmbH,PartexMarkingSystemsInc.,USA,PartexS.A.,FranceandPartexMarkingSystemsSp.Zo.o.,Poland.Partex Marking Systems AB is a wholly owned subsidiary to Partex Holding AB, 556645-2701,domicile in Göteborg.

The main business of Partex Marking Systems AB consists of manufacturing and sales of marking systems for wires, cables and components for electrical facilities and for hoses and pipes in pneumatic and hydraulic facilities.

During 2010 there has been a recovery from the recession of 2009 and we now show the same sales figures as 2008 and more. The margins are slightly lower which results in a profitability near the profitability of 2008 for the concern. The focus of 2010 has been on growth. Our goals has been exceeded because of a high customer prospecting in emerging markets and increased sales efforts in mature markets. Partex market position is continuously strong, especially in Northern Europe where we take advantage of the fact that we are one of the few companies on the market that completely focus on marking systems and solutions.

Our product areas that show the highest growth are our customized multi-character markers (M2) and our on-site marker production solutions (M3). Focused development of material and processes for these areas is expected to lead to continuous high growth. Our single-character markers (M1) is stable and keeps play an important role for the company’s product range.

Both the parent and the subsidiaries show great figures for 2010. The exception is Partex USA. Partex USA has hired a new Sales Manager which has lead to an increments in sales in the first time of 2011. An evaluation of the business in USA will be done in the first half of 2011.

The other companies has also started 2011 in a good way and the goals for groups sales and profitability is expected to be achieved.

director’s report


Note 2010 2009 Operating income: Net sales 154 556 128 377 Change in stock -1 248 433 Other operating income 5 121 3 082

Total operating income 158 429 131 892

Operating expense: Raw material and necessaries -8 013 -7 483 Merchandise -40 578 -31 424 Other operating expense 3 -29 875 -26 347 Personnel 4,5 -54 811 -53 928 Depreciation 6,7,8,9,10 -2 206 -2 157

Total operating expense -135 483 -121 339

Operating profit 22 946 10 553

Results from financial investments: Resultsfromfixedassets 13 -1138 -1018Interests receivable and similar income 605 479 Interests payable and similar charges -396 -379

Totalresultsfromfinancialinvestments -929 -918

results before tax 22 017 9 635

Tax 17 -5 730 -2 998

ProFit For the yeAr 16 287 6 637

group income statement (ksek)


group balance sheet(ksek)

ASSetS Note 2010 2009FixeD ASSetS 1

Intangible fixed asset Computer program 6 241 179 Goodwill 7 0

Totalintangiblefixedasset 241 179

Tangible fixed assets Buildings and land 8 10 011 9 586 Machinery 9 3 047 2 236 Equipment 10 3 475 3 433 Machinery under construction 11 1 539 1 387

Totalfinancialassets 18072 16642

Financial assets Other long-term securities holding 10 10 Other long-term receivables 727 802

Totalfinancialassets 737 812 Total fixed assets 19 050 17 633

Current ASSetS Stock Raw material 2 447 2 667 Work-in-progress 568 447 Finished goods and merchandise 23 803 21 549

Total stock 26 818 24 663

Current receivables Accounts receivable 28 776 22 032 Other receivables 260 1 435 Deferred expenses and accrued income 1 211 1 924

Total current receivables 30 247 25 391

Cash and bank 35 259 30 527 total current assets 92 324 80 581 totAl ASSetS 111 374 98 214

liABilitieS AnD ShAreholDerS’ eQuity Note 2010 2009eQuity 15 Restricted equity Share capital 1 500 1 500Restricted reserves 9 076 8 935

Total restricted equity 10 576 10 435

Non-restricted equity Profitbroughtforward 52463 53916Profitfortheyear 16287 6637

Total non-restricted equity 68 750 60 553

totAl eQuity 79 326 70 988 Allocation Pension provision 516 538Deferred tax 17 2 871 3 149

Total allocation 3 387 3 687 Long-term liabilities Bank advances 0 16Other liabilities to credit institutions 10 0

Total long-term liabilities 10 16

Current liabilities Advances from customers 819 0 Accounts payable 11 594 7 336Liabilities Group Companies 2 170 4 370Income tax liabilities 1 206 714Other liabilities 4 565 4 250Accrued expenses and deferred income 8 297 6 853

Total current liabilities 28 651 23 523 totAl liABilitieS AnD ShAreholDerS’ eQuity 111 374 98 214 Pledged assets 19 9 840 9 840Contingent liabilities 20 None None

group balance sheet(ksek)

Cont.


parent company income statement(ksek)

Note 2010 2009Operating income: Net sales 68 370 57 728 Change in stock -614 698 Other operating income 4 407 2 598

Total operating income 72 163 61 024 Operating expense: Raw material and necessaries 2 -5 785 -6 093 Merchandise 2 -8 247 -6 829 Other operating expense 3 -15 785 -11 111 Personnel 4,5 -33 371 -31 975 Depreciationoftangiblefixedassets 8,9,10 -1000 -953

Total operating expense -64 188 -56 961 Operating profit 7 975 4 063 Results from financial investments: Results from shares in Group Companies 12 2 479 -1 392 Resultsfromfixedassets 13 -1138 -1018Interests receivable and similar income 286 352 Interests payable and similar charges -7 -11

Totalfinancialinvestments 1620 -2069 Results after financial items 9 595 1 994 Transfers to untaxed reserves: Allocation to periodic reserve 16 -258 110Difference between book depreciation and depreciation according to plan 16 66 -34

Total transfers to untaxed reserves -192 76

results before tax 9 403 2 070 Tax 17 -1 934 -861 ProFit For the yeAr 7 469 1 209


parent company balance sheet(ksek)

Note 2010 2009 ASSetS Fixed assets 1 Tangible fixed assets Buildings and land 8 2 285 2 414 Machinery 9 1 062 1 576 Equipment 10 1 618 1 326 Machinery under construction 11 1 454 1 289

Totaltangiblefixedassets 6419 6605 Financial assets Shares in subsidiaries 14 10 142 10 142 Long-term receivables from Group Companies 5 048 6 669 Other long-term securities holding 10 10

Totalfinancialassets 15200 16821 Total fixed assets 21 619 23 426

Current ASSetS Goods in stock Raw material 2 447 2 667 Work-in-progress 568 447 Finished goods and merchandise 5 607 6 178

Total stock 8 622 9 292 Current receivables Accounts receivable 9 430 7 187 Receivables from Group Companies 5 102 0 Tax receivables 0 445 Other receivables 87 202 Deferred expenses and accrued income 18 621 628

Total current receivables 15 240 8 462 Cash and bank 19 917 16 320 total current assets 43 779 34 074 totAl ASSetS 65 398 57 500

Note 2010 2009liABilitieS AnD ShAreholDerS’ eQuity eQuity 15

Restricted equity Share capital (15 000 shares) 1 500 1 500 Restricted reserves 300 300

Total restricted equity 1 800 1 800 Non-restricted equity Profitbroughtforward 29325 31706Profitfortheyear 7469 1209

Total non-restricted equity 36 794 32 915 totAl eQuity 38 594 34 715 Untaxed reserves 16 Accelerated depreciation 874 940Periodic reserve 11 034 10 776 Total untaxed reserves 11 908 11 716 Allocation Pension provision 516 538

Total allocation 516 538 Long-term liabilities Loan from Group Companies 99 100

Total long-term liabilities 99 100 Current liabilities Advances from customers 819 0Accounts payable 3 002 2 793Payable to Parent Company 2 170 0 Payable to Group Companies 0 847 Income tax liabilities 50 0 Other liabilities 1 546 1 388 Accrued expenses and deferred income 18 6 694 5 403

Total current liabilities 14 281 10 431 totAl liABility AnD ShAreholDerS’ eQuity 65 398 57 500 Pledged assets 19 9 840 9 840 Contingent liabilities 20 2 102 2 725

Cont.

parent company balance sheet(ksek)


cash flow statement(ksek)

Group Parent Company

2010 2009 2010 2009

Current oPerAtion oF BuSineSS

Profitafterfinancialitems 22 017 9 635 9 595 1 994

Exchange rate difference in liquid assets -3 416 0 0 -86

Depreciation charged to this income 2 184 1 116 978 957

Tax paid -5 516 -2 951 -1 884 -2 501

Cash flow from current operation of business

before change in working capital 15 269 7 800 8 689 364

CASh Flow FroM ChAngeS

in worKing CAPitAl

Increase (-) / Decrease (+) in stock -2 155 1 188 670 -375

Increase (-) / Decrease (+) in operating receivables -4 856 1 908 -6 778 1 596

Increase (+) / Decrease (-) in operating liabilities 4 636 -2 455 3 800 1 526

Cash flow for current operation of business 12 894 8 441 6 381 3 111

inVeStMent ACtiVitieS

Investmentsintangiblefixedassets -4 664 -3 269 -954 -2 449

Investmentsinintangiblefixedassets -125 0 0 0

Changeinfinancialfixedassets 0 194 1 621 2 921

Saleoffixedassets 223 0 140 367

Cash flow from investing activities -4 566 -3 075 807 839

Financing activities

Repayment of borrowings -6 0 -1 0

Paid dividend -3 000 -3 000 -3 000 -3 000

Group contribution -590 -500 -590 -500

Cash flow from investing activities -3 596 -3 500 -3 591 -3 500

Cash flow for the year 4 732 1 866 3 597 450

liquid funds at the beginning of the year 30 527 28 661 16 320 15 870

liquid funds at end of year 35 259 30 527 19 917 16 320

Partex Marking Systems AB


note 1 Accounting principleApplied accounting principles are consistent with the Annual Accounts Act and statements and advices from the Accounting Board with the exception of the K2 regulations.

Consolidated financial statementTheconsolidatedfinancialstatementhasbeenpreparedaccordingtorecommendationsfromtheFinancialAc-counting Standards Council. This means that assets and liabilities for all subsidiaries are measured with the so-called purchase method. The companies untaxed reserves have been divided between two parts equity and deferred tax. Untaxed reserves have been transferred to restricted reserves and deferred tax to provision for taxes.

Fixed assetsIntheprofitandlossstatementdepreciationsaccordingtoplanisbasedonactualcostandcalculatedbasedonthe useful life of the assets.

Buildings 2 – 4 %Land improvements acquired after 1/7 1990 5 %Machinery 15 %Equipment, tools and installations 15 %Computers and systems 25 – 33 %Vehicles 20 %Property inventory 10 %Goodwill 20 %

Valuation principles Assets, allocation and liabilities have been valued to acquisition value unless other is stated below.

StockRaw material and merchandise is valued to the lower of acquisition value and actual value. Goods produced are valued to costs of production incl. adequate share of indirect costs.

ReceivablesReceivables are carried to the amounts expected to be received.

Monetary assets and liabilities in foreign currenciesMonetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.

RevenueAccounting of revenue for sales of goods is done with the guidance of BFNAR 2003:3 and is included as the fair value received or to be received. Earnings from sales of goods is recognized when the following conditions aremet:thecompanyhastransferredthesignificantriskandrewardofownershiptothebuyer,thecompanydoes not retain any involvement in the ongoing management that is usually associated with the ownership of the goods and does not exercise any effective control over the goods sold, revenue can be reliably measured, itisprobablethattheeconomicbenefitsthatthecompanyshallreceivefromthetransactionwillaccruetothecompany and that the expenditure incurred or to be incurred as a result of the transaction can be measured with reliability.

notes to the financial statements(ksek)

Parent CompanyNote 2 Purchases and sales within the Group 2010 2009 Sales of goods 19 266 15 358 Sales of services 0 0 Purchases of goods 986 1 030 Purchases of services 736 564

Group Parent Companynote 3 Audit fees 2010 2009 2010 2009 BDO Göteborg KB Audit assignment 447 541 168 200 Audit activities in addition to auditing 0 0 0 0 Tax consultation 0 0 0 0 Other assignments 66 64 34 30 Total 513 605 202 230

Group Parent Companynote 4 Personnel 2010 2009 2010 2009 Average number of employees Men 81 75 40 40 Women 45 41 26 25 Total 126 116 66 65 Sick leave parent company Sick leave in per cent of regular working hours for each group Sick leave for all employees 2,57% 1,8%

Part of total sick leave lasting 60 days or more 0% 0%

Men 2,95% 2,8% Women 2,32% 1,1%

29 years and younger 6,37% 1,8% 30 - 49 years 1,86% 0,9% 50 years or older 2,23% 2,5%


Group Parent Companynote 5 wages and salaries 2010 2009 2010 2009 Salaries and benefits Board of Directors and Managing Directors 4 919 7 693 1 833 2 133 Employees 35 244 31 034 20 635 19 861 Total wages and salaries 40 163 38 727 22 468 21 994

2010 2009 2010 2009 Pensions and social security costs Board of Directors and Managing Directors 651 830 449 415 Employees 2 124 2 011 1 848 1 423 Other social costs 10 457 9 416 7 357 7 008 Total pensions and social security costs 13 232 12 257 9 654 8 846

Gender balance in the Board of Directors Number of board members 9 7 Number of women 3 3

Number of executives including managing directors 8 7 Number of women 3 2

Group Parent Companynote 6 Computer program 2010 2009 2010 2009 Opening acquisition value 383 295 0 0 Exchange rate differences -102 0 0 Additions in year 125 88 0 0 Closing acc acquisition 406 383 0 0

Opening amortization -198 -181 0 0 Exchange rate differences 82 0 0 Amortization in year -49 -17 0 0 Closing acc depreciation value -165 -198 0 0

Exchange rate differences 0 -6 0 0 Residual value 241 179 0 0

Group Parent CompanyNote 7 Goodwill 2010 2009 2010 2009 Opening acquisition value 2 571 2 571 0 0 Closing acc acquisition value 2 571 2 571 0 0

Opening amortization -2 571 -2 528 0 0 Amortization in year 0 -43 0 0 Closing acc depreciation value -2 571 -2 571 0 0

Residual value 0 0 0 0

Group Parent Companynote 8 Buildings and land 2010 2009 2010 2009 Opening acquisition value 15 529 14 461 5 786 5 666 Exchange rate differences -1 010 0 0 0 Additions in year 1 474 1 068 8 120 Closing acc acquisition 15 993 15 529 5 794 5 786

Opening amortization -5 650 -5 290 -3 372 -3 238 Exchange rate differences 70 0 0 0 Amortization in year -402 -360 -137 -134 Closing acc depreciation value -5 982 -5 650 -3 509 -3 372

Exchange rate differences 0 -293 0 0 Residual value 10 011 9 586 2 285 2 414 Book-value buildings 8 822 8 283 1 758 1 877 Book-value land improvements 318 336 319 336 Book-value land 871 967 208 201 10 011 9 586 2 285 2 414

Assess value buildings, parent company 5 383 3 983 5 383 3 983 Assess value land, parent company 931 794 931 794



Group Parent Companynote 9 Machines 2010 2009 2010 2009 Opening acquisition value 24 778 24 491 18 686 18 521 Exchange rate differences -800 0 0 0 Disposals in year 0 -2 0 0 Additions in year 1 702 289 0 165 Closing acc acquisition 25 680 24 778 18 686 18 686

Opening amortization -22 742 -21 846 -17 110 -16 545 Exchange rate differences 930 0 0 0 Disposals in year 0 2 0 0 Amortization in year -821 -898 -514 -565 Closing acc depreciation value -22 633 -22 742 -17 624 -17 110

Exchange rate differences 0 200 0 0 Residual value 3 047 2 236 1 062 1 576

Group Parent Companynote 10 inventories, tools and installations 2010 2009 2010 2009 Opening acquisition value 14 087 12 813 9 154 8 632 Exchange rate differences -267 0 0 0 Disposals in year -440 -550 -216 -502 Additions in year 1 323 1 824 781 1 024 Closing acc acquisition 14 703 14 087 9 719 9 154

Opening amortization -10 810 -10 200 -7 828 -7 756 Exchange rate differences 224 0 0 0 Disposals in year 292 230 76 182 Amortization in year -934 -840 -349 -254 Closing acc depreciation value -11 228 -10 810 -8 101 -7 828

Exchange rate differences 0 156 0 0 Residual value 3 475 3 433 1 618 1 326

Group Parent Companynote 11 Construction in progress and advances for tangible assets 2010 2009 2010 2009 Opening acquisition value 1 387 149 1 289 149 Additions in year 165 1 238 165 1 140 Exchange rate differences -13 0 0 0 Closing balance 1 539 1 387 1 454 1 289

Parent CompanyNote 12 Profit from shares in Group Companies 2010 2009 Dividend Daughter Companies 2 026 1 108 Long-term receivables impairment charge from Partex Marking Systems Inc 0 -1 937 Short-term receivables impairment charge from Partex Marking Systems Inc 0 -563 Reversal of long-term impairment charge from Partex Marking Systems Inc 453 0 Total 2 479 -1 392

note 13 results from other investments held as Group Parent Company fixed assets 2010 2009 2010 2009 Exchange rate differences -1 138 -1 018 -1 138 -1 018 Total -1 138 -1 018 -1 138 -1 018



note 14 Shares in group Companies 2010 2009 Opening acquisition value 10 142 10 142 Closing book-value 10 142 10 142 Company, org no, domicile Number Book-value Book-value 2010 2009 Partex AB 556348-9623, Gullspång, Sweden 1 100 100 Partex Marking Systems (UK) Ltd 850894, Coleshill, England 25 4 964 4 964

Partex Marking Systems GmbH 3348, Wendlingen, Germany 50 181 181

Partex Marking Systems Inc 5958-361-1, Chicago, USA 0 0 0 Partex S.A. B 775 678 998, Paris, France 3 4 594 4 594

Partex Marking Systems Sp. zo. o 6598/1999, Torun, Poland 30 303 303 10 142 10 142

equity and results group Companies Equity Result Partex AB 100 0 Partex Marking Systems (UK) Ltd 20 236 4 576 Partex Marking Systems GmbH 4 883 1 158 Partex Marking Systems Inc -10 146 -1 543 Partex S.A. 7 237 775 Partex Marking Systems Sp. zo. o 17 728 4 800 40 038 9 766

note 15 Changes in equity Share Restricted Total non- Changes in equity in the Group capital reserves restricted equity Opening balance 1 500 8 935 60 553 Changed capital part of untaxed reserves 141 -141 Dividend -3 000 Group contribution -800 Tax effect Group contribution 210 Exchange rate differences -4 359 Profitfortheyear 16287 Closing balance 1 500 9 076 68 750 Share Restricted Total non- Changes in equity Parent Company capital reserves restricted equity Opening balance 1 500 300 32 915 Group contribution -800 Tax effect Group contribution 210 Dividend -3 000 Profitfortheyear 7469 Closing balance 1 500 300 36 794

Parent Companynote 16 untaxed reserves 2010 2009 Periodic reserves: Allocated for tax 2005 0 1 925 Allocated for tax 2006 1 344 1 344 Allocated for tax 2007 727 727 Allocated for tax 2008 2 430 2 430 Allocated for tax 2009 3 350 3 350 Allocated for tax 2010 1 000 1 000 Allocated for tax 2011 2 183 0 Acc depreciation 874 940 Total 11 908 11 716



Group Parent CompanyNote 17 Tax on profit 2010 2009 2010 2009 Tax -5 940 -2 950 -1 934 -861 Change in deferred tax for the year 210 -48 0 0 Deferred tax in untaxed reserves 0 0 -3 132 -3 081

Parent Companynote 18 Accruals 2010 2009 Prepaid costs and accrued income Prepaid leasing costs 30 54 Prepaid insurances 175 173 Prepaid rents 65 45 Prepaid costs 289 287 Accrued income 62 69 Total 621 628

Accrued costs and deferred income Accrued salary and semester wages 980 738 Accrued semester wages 2 744 2 670 Other accrued costs 2 969 1 995 Total 6 693 5 403

Group Parent Companynote 19 Pledged assets 2010 2009 2010 2009 Property mortgages 2 100 2 100 2 100 2 100 Floating charge 7 740 7 740 7 740 7 740 Total pledged assets 9 840 9 840 9 840 9 840

Group Parent Companynot e 20 Contingent liability 2010 2009 2010 2009 Group Company, Germany 0 0 2 102 2 725 Total contingent liability 0 0 2 102 2 725

Note 21 Definition of key figures Solidity Adjusted equity in per cent of total assets.

Return on equity Profitafterfinancialiteminpercentofadjustedequity.

Gullspång, June 10 2011

Martin Lundstedt Bengt-Göran Bengtner Chairman of the Board of Directors Managing Director

TorBjörn Lööf Sophie Lööf-Mårtensson Leif Reinhold Owe Marstorp Carina Dickens Nilsson

Patrick Wirtanen Els-Marie Ärnström-Jansson Employee representative Employee representative

Audit report has been submitted on June 10, 2011

Hans Hallberg Authorized Public Accountant



to the annual meeting of the shareholders of Partex Marking Systems ABCorporate identity number 556074-3261

I have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Partex Marking Systems AB for the year 2010-01-01 -- 2010-12-31. These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts and the consolidated accounts are the responsibility of the board of directors and the managing director. My responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based of my audit.

I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for my opinion concerning discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. I also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that my audit provides a reasonable basis for my opinion set out below.

The annual accounts and the consolidated accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company’s and the group’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.

I recommend to the annual meeting of shareholders that the income statement and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the statutory administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Göteborg, 10 06 2011

Hans G HallbergAuthorizedPublicAccountant

audit report


M a r -tin Lundstedt

Managing DirectorActing Managing Director of Partex is Bengt-Göran Bengtner. Bengt-Göran has long experience from leading positions from e.g. Telia and Ericsson, and is currently managing his own consultant business specialized in leadership- and business development. We welcome Bengt-Göran to our organization.

Board of Directors The Board of Directors contain the following eight board members;

As of 1st of January 2011 Martin Lundstedt is the Chairman of the Board of Directors at Partex Marking Systems AB. Martin Lundstedt has over 15 years of experience from international business and is Executive Vice President and managing Franchise and Factory Sales at Scania.

TorBjörn Lööf is son to the founders, Tore and Ingegerd Lööf. TorBjörn Lööf has previously been both Managing Director and Chairman of the Board of Directors at Partex.

Carina Dickens Nilsson has for the last 18 years worked with recruitment, development and conversions. Her role as a Company Manager has also allowed her to work with sales, marketing, economics and analytical reporting.

Sophie Lööf-Mårtensson is Vice President and Marketing & PR manager. She represents the third generation of the Lööf family. Prior to joining Partex Sophie Lööf-Mårtensson worked at Metsä Tissue AB in Mariestad as the PR Manager for Lambi.

Owe Marstorp is a graduate in Business Administration and a qualified development consultant. He has wide professional experience in both manufacturing, service and trading business where he, for almost 20 years, worked with strategic development processes.

Leif Reinhold has been an Authorized Public Accountant and partner of BDO. He has also been Managing Director and Chairman of the Board at BDO Göteborg and member of the Board at BDO Sweden. Leif was Partex’s accountant since the 1980s and became, after he renounced his authorization in 2007, a member of the board.

Patrick Wirtanen has been at Partex since 1996, and has worked at the sales department since 1999. In the Board Patrick Wirtanen is the regular representative of the official union; Unionen.

Els-Marie Ärnström-Jansson has been working at Partex since 2002. She works at the company’s stock department and her duties include forwarding, stock work and purchases of products. Els-Marie is the regular representative for the union; IF Metall.

Owners TorBjörn Lööf owns the Partex Group together with his daughter Sophie Lööf-Mårtensson.

managing director, board of directors and owners

Chairman of the BoardMartin Lundstedt

Member of the BoardTorBjörn Lööf

Member of the BoardLeif Reinhold

BoardrepresentativeforIFMetallEls-MarieÄrnström-Jansson

Board representative for UnionenPatrick Wirtanen

Member of the BoardCarina Dickens Nilsson

Member of the BoardOwe Marstorp

Member of the BoardSophie Lööf-Mårtensson

partex marking systems ab

visiting address: tore lööfs gata 2, gullspång

postal address: se-547 22 gullspång

phone +46 (0) 551 280 00, fax +46 (0) 551 280 99

[email protected], www.partex.nu

WWW.PARTEX.NU

Partex annual 2010_110817

Economy & Finance

Transcript of Partex annual 2010_110817