Dear Shareholder,

In 2010, Beijer Alma experienced the best year in its 28-year history. After surviving what may be the deepest global economic crisis since World War 2, we noted the signs of an economic recovery as early as the end of 2009. The upturn continued with full intensity in 2010. Swedish industry benefited from the recovery of key trading partners, such as Germany. In addition to this, continued strong demand in Asia, especially China, naturally contributed to global growth.

Industries hit extra hard by the recession – such as the automotive industry – recovered and exhibited strong growth during the year. Beijer Alma was well-equipped to capitalize on the upturn. We endured the recession well and were also able to mobilize our strong financial position to act aggressively. During the first quarter of 2010, we acquired the industrial trading group Beijer Tech, thus leaving the recession behind and heading into the economic boom stronger than ever.

The operating margin in 2010 was a record-high 18 percent, after declining to 15 percent at the bottom of the recession in 2009. Naturally, we will remain dependent on the industrial economy ahead, although in line with our strategy, we will continue to expand the Group with a focus on high and consistent profitability in the years to come. The key to this development is disciplinary control – in terms of operating activities and the selection of new growth areas. In 2010, the Group's invoicing grew 46 percent to MSEK 2,290.

Profit before tax amounted to MSEK 399 and all our subsidiaries contributed positive earnings.

Lesjöfors also performed exceptionally well this year, with high growth and an operating margin of 29 percent. Industrial Springs and Flat Strip Components grew the most. Growth in Chassis Springs was somewhat lower following several years of strong expansion. However, all areas of Lesjöfors reported high, improved profitability.

Habia was also among the operations that are dependent on the general economy, and although sales to telecoms experienced a weaker trend, Habia still achieved acceptable profitability in 2010. However, general industrial customers must ultimately account for a greater percentage of sales for Habia to achieve sustainably high operating margins.

As mentioned, the industrial trading group Beijer Tech was acquired in the first quarter of 2010 and contributed high growth and strong profitability. The company is active in two principal areas: Fluid Technology and Industrial Products. Both of these areas were positively impacted by the stronger industrial economy.

2010 opened with improved demand. Order bookings grew by 5 percent in the first quarter. Invoicing dropped somewhat, although this was entirely an effect of the strong SEK. Earnings increased to MSEK 86 and the operating margin rose to 20 percent. Lesjöfors was responsible for the entire improvement, while Habia experienced lower invoicing and earnings.

The recovery continued in the second quarter, which was the best to date in Beijer Alma's history. Beijer Tech was also consolidated in our accounts as of the second quarter. Adjusted for this acquisition, invoicing grew by 14 percent at the same time as profit more than doubled to MSEK 117. Now, all Group companies also contributed to the improved earnings.

This trend accelerated in the third quarter. Order bookings and invoicing increased and earnings nearly doubled to MSEK 100. All of our companies also contributed to the improvement in the third quarter.

In the fourth quarter, invoicing increased by 18 percent in comparable units. The new Beijer Tech operations grew by 45 percent. Earnings amounted to MSEK 95, which should be compared to MSEK 40 during the same period the year before.

In other words, overall invoicing totaled MSEK 2,290 in 2010. Adjusted for the acquisition of Beijer Tech – and only comparing with the Group's position in 2009 – growth was 12 percent. Our collective profit increased to MSEK 399, which was the best profit achieved by Beijer Alma to date. The operating margin was 18 percent, which was an improvement of 2.5 percentage points on the preceding year.

The high profit in 2010 is of course an effect of the strong demand in virtually all of our business areas. However, this is also a result of the savings implemented during the recession and the company's ability to restrict its costs when demand rose again.

Strong profitability led to positive cash flow, which means that we have a strong balance sheet. At year-end 2010, net cash amounted to MSEK 91. Combined with shareholders' equity of SEK 1.4 billion, this provides us with considerable strength in our continued expansion.

Beijer Alma has experienced fantastic growth for several years. We have achieved higher profit and better margins than ever before. We were also able to avert the recession with a limited impact on earnings.

Of course, strategic efforts are important in this development. Although, equally important is the daily work at all levels in the Group – work focused on higher sales, better productivity and cost control. This involves being continuously alert, setting targets, monitoring progress and, when necessary, taking action! Respect for this constant niggling is and will continue to be crucial to the success of Beijer Alma.

Now, please allow me to review the performance of each of our subsidiaries in 2010.

Lesjöfors' invoicing increased by 15 percent to MSEK 1,207. Operating profit amounted to MSEK 349 – and the operating margin reached a record 29 percent.

In the Industrial Springs business area, Lesjöfors manufactures and sells springs for every conceivable application, ranging from micro-springs to large, hot wound springs. Lesjöfors is the dominant player in the Nordic region and one of the major players in Europe. After having grown strongly in 2010, Industrial Springs is once again the largest business area. Invoicing increased by 22 percent compared with the preceding year.

Chassis springs are exchange springs for cars and light trucks. Lesjöfors is the leading supplier in Europe with a market share of more than 40 percent. This business has grown fantastically for several years. In the early 1990s, this business had a few million in revenues. Last year, Chassis Springs had grown to generate revenues of MSEK 450 with highly favorable profitability. Flat Strip Components is the smallest of Lesjöfors' business areas. After having been hit relatively hard by the recession, the business recovered in 2010 and grew by nearly 20 percent.

Habia also recovered last year after having been strongly affected by the economic decline. Invoicing rose 7 percent to MSEK 558. Operating profit grew from MSEK 12 to MSEK 46.

Habia's operations can be divided into two business areas – Telecoms and other customers. In 2010, telecoms accounted for one third of invoicing. For Habia, telecom essentially means cabling for base station antennas. The company is a world leader in this area. Today, the products are relatively standardized and the market is consolidated. There are a handful of major customers and a few competitors in the world. This also means that dependence on individual customers is relatively large.

The Other customers area accounts for two-thirds of sales and is more fragmented. Here, Habia supplies smaller quantities of custom-designed cables to a large number of companies. Accordingly, there is less dependence on individual products and customers.

Telecom sales dropped in 2010, while other sales showed strong growth. The telecom market is characterized by downward price pressure and strong fluctuations in demand. This means that the margins are decreasing and the organization must have contingency plans to manage these fluctuations. To handle this – and at the same time have competitive prices and acceptable profitability – an increasing share of Habia's production is being relocated to China. This process also continued in 2010 and in early 2011.

The telecoms business remains significant to Habia. At the same time, other customer areas are increasingly important to the future. It is mainly in these areas that Habia can expand while maintaining strong profitability.

Beijer Tech performed very well in its first year in the Beijer Alma Group. Beijer Tech is a Nordic technology trading group that sells machinery and consumables used in the industrial sector. Operations can basically be divided into two areas – Fluid Technology and Industrial Products. These two areas each account for half of sales.

In Fluid Technology, Beijer Tech is a wholesaler of hose and fitting products and is the largest player in Sweden. In Industrial Products, Beijer Tech is one of the largest players in the Nordic region in surface treatments and consumables for foundries and steelworks. After a weak beginning of the first quarter, Beijer Tech's sales rose 26 percent to MSEK 671. Both principal areas contributed to the rapid growth. Earnings increased to MSEK 48 and the operating margin amounted to 7 percent.

Immediately after the acquisition of Beijer Tech, we conducted a thorough strategic analysis of the business. Working with management, we identified areas of interest in which the company generates customer benefit and where there are growth opportunities. This work resulted in Beijer Tech acquiring the Danish technology trading company Preben Z. Jensen in 2010.

I really want to emphasize how pleased I am with the acquisition of Beijer Tech. The company supplements our manufacturing companies well and contributes a beneficial earnings and risk profile to Beijer Alma.

The Group's growth is based on a number of criteria that facilitate our expansion while maintaining high and consistent profitability. We have gathered these criteria in a strategic model, which could be called the "toolbox" of our development work.

An important prerequisite is Beijer Alma working exclusively with businesses geared toward industrial customers. Our companies shall also focus on areas that provide high customer value, meaning that we try to avoid the volume production of standard products since this practice is often associated with low profitability. At the same time, the companies shall be international and have strong market positions. Most importantly, we must have a diversified customer base, thus avoiding dependence on a limited number of customers or sectors.

Beijer Alma's strong performance during the year is largely attributable to operations being conducted in line with our strategic model. This applies to the continuous development of the companies, as well as acquisitions of new operations. A distinct example of this is Beijer Tech, which is a corporate group that offers high customer value, meaning products and services that create a benefit and clear value in the customer's operations. Beijer Tech has a strong market position in several of its main areas and a broad product and customer base.

However, it does not have the international spread that we strive for and is found in Lesjöfors and Habia. This means that we will work over time to increase Beijer Tech's international presence. These strategic guidelines help us choose the businesses that will be developed and acquired. Of course, this also involves passing over a number of growth alternatives. This could limit growth in the short term, but results in a stronger and more profitable trend in the long term.

The objective of all advancement work is to create shareholder value. For many years, Beijer Alma's share value trend has vastly outperformed the average for listed companies.

Investors who purchased SEK 100 worth of Beijer Alma shares five years ago saw their investments grow to SEK 220 today (excluding dividends). An equivalent investment in the NASDAQ OMX Stockholm General Index during the same period would have amounted to SEK 122.

I would now like to conclude by saying a few words about how the performance of our business in early 2011.

Demand was favorable in all of our companies. Sales increased in essentially all business areas. We also drew benefit from Beijer Tech's consolidation as of the beginning of the year. In addition, Lesjöfors completed an acquisition that contributes about MSEK 100 in annual invoicing.

On the down side, we are dealing with a strong SEK and higher commodity prices, which are currently causing severe headwinds. This mainly affects Lesjöfors and Habia, the latter of which is the most adversely affected due to substantial price increases in copper and plastic materials. At the same time, events in Japan are generating material shortages that risk worsening the situation further. In spite of this, the first quarter should provide higher earnings than the preceding year.

I would also like to emphasize that Beijer Alma is well positioned. We have a meticulously conceived strategy, strong subsidiaries and skilled employees, which is why I am convinced that we will continue to be able to generate value for our shareholders.

Thank you.