annual report 2003

4 the year in brief

2

l indab annual report 2003

6 CEO's comments

8 strategies for growth

10 lindab's solutions

14 proximity and expansion

18 processes of quality

22 a strong organisation

24 ventilation business area

30 profile business area

36 other business

38 administration report

41 key figures

42 consolidated income statement

43 consolidated balance sheet

46 consolidated cash flow statement

47 parent company income statement and balance sheet

In the Profile business area, the Rainline and Building System product areas are home to our compre-

hensive range of roof drainage products and our extensive range of building systems for offices, warehouses,

farm buildings, etc. Light-gauge purlins and wall studs, together with roof and wall cladding, are key compo-

nents in the Building System product area.

48 accounting policies

50 notes

60 auditor's report

62 board of directors

64 group management

66 technical glossary

In the Ventilation business area, the central product

area is Air Duct Systems

– circular and rectangular ducting solutions for ventilation systems.

Around this we have gradually built up a comprehensive

range of technical products – Indoor Climate

product area - whose role is to provide a well ventilated,

comfortable and quiet indoor climate.

3

Lindab is an international group which develops, manufactures and markets sheet

metal products and system solutions in the Ventilation and Profile business areas.

The Ventilation business area focuses on the ventilation industry, offering everything

from ventilation components to complete indoor climate solutions.

The Profile business area focuses on the construction industry, offering an extensive

range of building components and complete steel building systems for both residential

and commercial properties.

Having two clearly defined business areas - Ventilation and Profile - ensures an effec-

tive operational focus and the best use of shared resources in the group.

Since sheet metal forms the basis for both business areas' operations, there are

many points of contact between the two right along our quality-orientated value chain -

from purchasing, sheet metal working and production through to distribution, support

and delivery. Neatness and order in everything we do, a down-to-earth relationship with

customers and partners, and an unwavering focus on solutions that simplify construc-

tion are the factors which are bringing profitable growth not only for us but also for our

customers.

The Lindab group generated sales of SEK 5 302 M in 2003 and had 3 874 employees in

26 countries in Europe and North America. Its head office is in Grevie near Båstad in

southwestern Sweden.

this is lindab

4

Market conditions were less favourable

than we anticipated at the beginning of the

year. This led to the rapid launch of various

rationalisation projects during the first half

of 2003. The initiatives in Germany,

Switzerland and the UK were the most

important for rapidly improving profitability

through increased efficiency. The "Fill the

Gap" profitability programme was also an

important milestone for the continued

actionorientated focus on income and

costs throughout the group.

These activities duly boosted earnings,

and a strong performance in the third and

fourth quarters pushed up EBITA for the

year to SEK 305 M (325). Sales grew by 1%

to SEK 5 302 M (5 235).

The very strong growth in our markets

in Central and Eastern Europe continued in

2003. We also noted increased demand

and an improved market situation in the

USA during the second half of the year. In

the Nordic region we maintained our volu-

mes in a falling market, so increasing our

market share. The market in Western

Europe was weak but stabilised somewhat

towards the end of the year.

In Germany work began on reorgani-

sing our branch network to achieve an

improved production structure.

In Switzerland we acquired the compa-

ny FEA during the spring and then embar-

ked on a comprehensive restructuring pro-

gramme, which included bringing together

all local production at the new facilities in

Eiken that came with the acquisition.

In the UK there was a review of product

ranges and prices, which will limit the num-

ber of external products in favour of those

manufactured in-house.

The fourth quarter saw the completion

of the group's largest investment yet in the

form of the new production plant outside

Prague in the Czech Republic.

the year in brief

In 2003 the Lindab group generated sales of SEK 5 302 M (5 235), an increase of 1%. The

appreciation of the SEK reduced sales growth by three percentage points, while the year's

acquisitions and disposals added one percentage point and higher volumes added a fur-

ther three.

EBITA amounted to SEK 305 M (325). Earnings growth accelerated over the course of the

year, and fourth-quarter earnings were substantially higher than in 2002.

Two acquisitions were made during the year in the Ventilation business area: Swiss ven-

tilation company FEA AG and Bravida A/S's duct manufacturing business in Denmark.

Together with the disposal of the galvanising business at JiWeGalv AB and Eskilstuna

Galvan AB, this has enabled the group to concentrate even more sharply on its core busi-

ness.

Lindab made its single largest investment yet in the form of a new Central European pro-

duction facility outside Prague in the Czech Republic, which will be one of the cor-

nerstones of the group's continued production optimisation programme.

On 1 March 2004 Anders Persson left his position as business area manager at Profile to

become HR manager at group level. Peter Andsberg took over as business area manager

at Profile on the same day and will be based in Hungary, which has been Profile's largest

growth market in recent years.

Cash flow from operating activities totalled SEK 395 M (118).

Lindab is supplying facade systems for the Turning Torso, Malmö's new 192 metre tall landmark.

l indab summary & strategies

5

The group made its single largest investment yet during the year.

Early in 2003 the board decided to build a new Central European plant

to manufacture standard products in the Ventilation business area,

together with a smaller production unit for the Profile business area.

The plant outside Prague in the Czech Republic extends to more

than 25 000 square metres and was planned, built, inaugurated and

started up in less than seven months. The result is more cost-effective

production of labour-intensive products and greater proximity to the

growing markets of Central Europe and Russia.

Lindab further sharpened its focus on core business during the year. The acquisition of

FEA in Switzerland and Bravida's duct manufacturing business in Denmark strengthened

our resources in the Ventilation business area. Lindab's position as a system supplier,

especially in the Swiss market, was advanced significantly by the acquisition. There has

also been a major restructuring programme in Switzerland.

JiWeGalv and Eskilstuna Galvan were sold during the autumn. This means that the

group's operations now focus almost exclusively on our core business of efficiently pro-

cessing sheet metal and adding value and benefits that make life easier for our customers

and their customers in turn.

A profitability programme called "Fill the Gap" was launched across the group in 2003.

It builds on a number of key instruments for the analysis, ranking, certification and imple-

mentation of important activities intended to boost profitability and sharpen the focus on

the group's core business. "Fill the Gap" is also a means of cementing the strong com-

mon culture and approach to be found at Lindab. The certified activities now being imple-

mented throughout the group are intended to result in increased sales, higher market

share, better products and more efficient utilisation of resources.

The aim of the "Fill the Gap" programme with its detailed and concrete action plans is

to plug the gap between our actual EBITA and our long-term target EBITA of 9% on ave-

rage through sales-generating and cost-cutting activities.

2003 2002Sales, SEK M 5 302 5 235

EBITA, SEK M 305 325

Equity/assets ratio, % 43 43

Average number of employees, group 3 920 3 766

of which in Sweden 1 303 1 366

The new plant outside Prague.

Lindab aquired FEA in Switzerland during the year

Management meeting on "Fill the Gap".

6

In the 2002 annual report we identified

three key challenges that Lindab faces over

the next few years: to retain and develop

the strength that is the Lindab culture, to

ensure that the organisation retains its

motivation, entrepreneurial spirit and

enthusiasm, and to supplement this with a

clear commercial mindset to ensure profi-

table growth.

THE FIRST YEAR

Over the last year we have helped to safe-

guard the Lindab culture by cementing

relations between employees and compa-

nies in the group. Cooperation between

departments in different countries has been

strengthened. Another tangible result of our

efforts is the work on developing the

group's core values: neatness and order,

down to earth, simplify construction.

Our business structure, which builds

on active leadership and a clear emphasis

on a dynamic action-orientated approach,

has increased the organisation's efficiency

and profit focus. One of the important tools

that we have developed and used is the

profitability programme "Fill the Gap", a raft

of certified activities for optimising resource

utilisation and earnings growth. We have

begun the development of a common cor-

porate language in order to maximise

transparency, clarity and simplicity. Clearer

and more extensive use of management

groups at different levels of the organisa-

tion is an important change. And our cen-

tral support functions for purchasing,

logistics, legal affairs, communication and

so on have taken shape and are now con-

tributing to the more rational and efficient

utilisation of resources within the group,

which has further enhanced quality in seve-

ral areas.

Our focus on professionalism is an

important measure for ensuring profitable

growth. Another very important point in this

context is the realisation that we need to

charge customers for major sources of

added value, such as better products,

longer lifetimes and more efficient/local

distribution. If we are close to customers,

we can understand them better and deve-

lop solutions that are more profitable both

for them and for us. Over the last year we

have noted greater acceptance of our new

way of working, and growing involvement

in areas such as product development and

product launches.

Lindab is a company with both feet

firmly and proudly planted on the ground.

That special twinkle in the eye and the con-

stant drive to spy new opportunities can be

seen throughout the group.

HOW THINGS WENT

In terms of market conditions, 2003 was

weaker than we had anticipated, especial-

ly in Western Europe. The year also started

badly in the USA. Nevertheless we mana-

ged to gain market share in our main mar-

kets and strengthen our position for the

future. In the light of this, we are not dis-

appointed with an EBITA margin of 5.8%,

down just 0.4 percentage points on 2002.

IMPORTANT EVENTS

The new production plant outside Prague

in the Czech Republic is Lindab's single lar-

gest investment yet. Other important

events naturally included the acquisitions

and disposals carried out during the year to

further strengthen our position in the

Ventilation business area's core business.

The acquisition of FEA in Switzerland and

Bravida's duct manufacturing business in

Denmark has increased our chances of

supplying even better system solutions in

these markets, and the sale of JiWeGalv

and Eskilstuna Galvan in 2003 was another

step in the continued concentration on

Lindab's core business.

No acquisitions were made in the

Profile business area. Lindab Butler, which

was acquired in 2002, completed its first

full year as part of the group. The company

l indab summary & strategies

CEO's comments

7

has successfully been integrated with the

other units and has turned losses into pro-

fits. Thanks not least to a professional

restructuring programme implemented by

the company's management, we are loo-

king forward to growing volumes and ear-

nings at Lindab Butler in the future.

We are delighted to see that our activi-

ties in Central and Eastern Europe are

generating strong growth. Romania is a

good example of how we have been able

to combine rapid growth with good profita-

bility, and is also another important base for

continued expansion in the region. During

the year we also established sales offices in

Russia, Bulgaria and Slovakia. Together

with the offices already started up in places

like Sarajevo and Belgrade, this means that

we now have a strong organisation in a

region with great potential for Lindab.

Our expansion into Central and

Eastern Europe starting in Hungary has

shown that we have a clearly defined and

well developed expansion concept. We can

see good potential for the continued rapid

expansion of Lindab's business areas in

this fast-growing market.

OUTLOOK

We believe that the market will continue to

feature low growth and a degree of uncer-

tainty this year, but that Lindab's sales and

market share will continue to grow.

The year began with substantial in-

creases in steel prices, which is expected

to have a major impact on the industry. We

can see both risks and opportunities in the

current market climate. The changes made

in 2003 leave us well equipped for future

profitable growth. We plan to expand into

new markets and make further acquisi-

tions. With our clearer business strategy,

more efficient and rational operations, new

Central European production plant and

highly motivated and dedicated workforce,

we predict bright things for Lindab as we

actively continue to tread our established

path to profitable growth.

8

strategies for growth We will continue to focus on two business areas: Ventilation and

Profile.

Air Duct Systems (circular duct systems) and Rainline (roof drai-

nage systems) and Building System (steel building systems) are

the key product areas in each business area.

Central and Eastern Europe and the USA remain our primary

growth markets.

Growth is to be achieved through increased system sales and

through expansion in markets where our products have low

market penetration and high growth potential.

The "Fill the Gap" profitability programme focusing on sales-

generating and cost-cutting activities launched in 2003 is being

stepped up.

Further acquisitions will be made to gain market share, syner-

gies and new products.

Lindab's internationalisation is to continue.

FINANCIAL TARGETSGrowth in sales, % approx. 15

Operating margin (EBITA), % approx. 9

Return on capital employed, % > 20

Equity/assets ratio, % > 35

More than 700 Polaris and Professor supply-air beams have been

supplied for the Navet development in Gothenburg.

l indab summary & strategies

The growth targets and growth strategy

formulated in 2002 are unchanged.

The long-term strategic goals we set

for sales and earnings should be viewed as

averages over a number of years rather

than targets for each individual year.

The target for sales growth has three

components: organic growth, growth

through acquisitions, and inflation. For

natural reasons, acquisitions are depen-

dent on purely commercial factors.

Economic developments outside the com-

pany's control also impact on the actual

rate of growth each year.

But our objective is clear. By genera-

ting long-term profitable growth at the sta-

ted levels on the strength of our mission,

we aim to further cement Lindab's market

position and realise our vision.

OUR BUSINESS IDEA

Lindab aims to offer the market readily

assembled high-quality products in two

business areas, Ventilation and Profile.

The basis for this is Lindab's extensive

knowhow in developing, manufacturing,

marketing and distributing sheet metal pro-

ducts.

OUR VISION

Lindab is to be the quick, flexible and local

partner that delivers high quality in every

way in both of its business areas,

Ventilation and Profile.

We are to be perceived as the compa-

ny that focuses constantly on meeting

customers' needs and offers solutions that

create more added value and make custo-

mers' life easier than any other.

design

tender/order

product/system

delivery

installation

operation

Design and calculation kick off every construction process. Our proximity and expertise enable us to assist HVAC en-

gineers, designers and architects, and to contribute to economical, ecological and functional solutions in which Lindab's

products play an important role. Our IT tools offer these professionals design and product selection solutions which are

easy to use, save money and result in solutions with functionality assured.

Tendering and ordering lay the foundations for subsequent efficient project management and profitable logistics flows.

Thanks to our tried-and-tested procedures and close customer relations, along with our new project management tool in

the form of the LinPro software package, installers can easily and efficiently build up orders tailored entirely to each par-

ticular project's needs in terms of delivery times and addresses.

Our product range and system solutions are the hub around which our business is built. We are unique in being able

to offer our customers such a wide variety of both standard products and fully customised solutions from one and the

same source. Together with our other services and support, this results in a total solution that makes us our customers'

problem-solver and coordinating supplier of complete, profitable package solutions.

Delivery is about three things and three things only from the customer's point of view: the right product at the right place

at the right time. With a tight construction schedule, there is no margin for error - whether this concerns a consignment

of standard products collected or delivered from the local Lindab branch or a special order shipped directly from one of

our production plants. For us, delivery precision will always be a priority.

Installing products and system solutions is among our customers' key roles. Easy, safe and rapid assembly is the result

of labour-saving and smart solutions. Our circular duct fittings with rubber seals and our ready-cut, easy-to-handle and

dry steel wall studs are good examples of this. For our customers, installation is synonymous with economy, ergonomics

and efficiency. And that is exactly what we offer.

Operation begins once installation is complete and the project has been handed over. Now it is up to good function, easy

maintenance and minimum lifecycle costs to give the building's owner peace of mind and trouble-free operation. Thanks

to the quality ethic which has always guided our product development and product characteristics, our system solutions

assure designers, installers and investors alike of a cost-effective solution for the future.

In 2002 and 2003 we carried out an extensive programme of work internally to verify and formulate our threecore values: neatness and order, down to earth and simplify construction. This work was also the source ofour new slogan: "We have the solution". This neatly sums up our overall promise to the market and to ourcustomers: a total solution which adds value and benefits that make life easier for our customers and theircustomers in turn. The most important components of this total solution are presented over the followingpages.

9

10

Our solutions build on a clear foundation

of quality. This way of thinking is reflected in

all of our activities, from product develop-

ment, manufacturing processes and distri-

bution through to the way we service

customers through proximity, support and

a broad range of products and system

solutions.

The following pages look in a little more

depth at how our quality ethic pervades the

whole of our organisation and all of our pro-

cesses, and present a few snapshots which

illustrate in concrete terms what this means

for our customers and partners in their day-

to-day work.

Lindab - we have the solution.

Chilled beams are part of the Climate product area.

Roof tiles are an important element in the Coverline product area.

l indab l indab's solut ions

11

lindab's solutions

Silencers for duct systems are the key product in the Acoustics product area.

Steel wall studs are key products in the Construline product area, and are also included in the Building System product area.

12

l indab l indab's solut ions

13

PB teknik AB is a successful HVAC and

sanitation consulting firm which has won a

series of prestigious contracts requiring

very high standards of expertise and know-

how in both ventilation technology and

water and sewerage technology. One of its

more complex projects in 2003 was the

construction of an HVAC and sanitation

installation for the Swedish National

Veterinary Institute's new high-risk labora-

tory in Ultuna. We spoke to chief engineer

Torbjörn Lång from PB teknik at the new

laboratory.

The 450 m2 laboratory was designed to

comply with risk classes P4 Animal, the

highest level, and P3 Human, the second

highest level. "This means that the labora-

tory has been designed to be completely

sealed off from the outside world - neither

air, water, wastewater nor anything else can

escape from its four walls," Torbjörn Lång

explains. "The exhaust air system is fitted

with double HEPA filters enclosed in sepa-

rate safety boxes and equipped with

bubble-tight dampers - the most airtight of

all. The result of this is a system and envi-

ronment which are extremely safe and

allow maintenance and filter changes to be

carried out with the same high levels of

safety."

PB teknik has used Lindab's CADvent

software for designing, drawing and calcu-

lating ventilation systems for many years. In

this case the entire ventilation system and

also all the pipework were drawn in

Lindab's new CADvent plus package: "This

was the first time we've used CADvent

plus," says Lång. "As our contract covered

the entire HVAC and sanitation installation,

we wanted to do everything in the same

software environment. Now we could draw

everything in CADvent plus and neatly

avoid collisions between pipes. We could

also use the package's advanced sound

calculation modules to carry out a com-

plete acoustic analysis in all octave bands

for the ventilation system. This enabled us

to deal with a number of tricky acoustics

problems right from the planning stage."

PB teknik's work also had benefits for

the installer once the many Lindab pro-

ducts and other systems came to be

installed: "By designing everything in

CADvent, we could give the fitters 3D

installation drawings," says Lång. "These

made life a lot easier, especially when

installing this complex facility."

advantage: design

Torbjörn Lång from PB teknik outside the Swedish National Veterinary Institute's high-risk laboratory in Ultuna.

PB teknik designed its HVAC and sanitation systems using Lindab's CADvent plus software package.

in new markets. Building up new branches

and representative offices is crucial to our

continued internationalisation. We therefore

anticipate further growth in our branch net-

work in the near future.

Our focus on proximity means that our

distribution system is constantly evolving.

For us, the important thing is to follow the

market and its needs as closely as possible

- to be wherever we spy the best openings.

This is why we are currently reallocating

14

Being close to our customers and our

markets has always been of utmost impor-

tance to Lindab.

It is this local presence and daily con-

tact with customers that enable us to gain

the best possible understanding of custo-

mers' needs, and so to offer and supply

package solutions which give installers,

contractors and principals the best value

for money and the highest quality. It is also

through this local presence that we can

Sweden and Århus in Denmark to

Budapest in Hungary and Portsmouth in

the USA give tens of thousands of custo-

mers worldwide ready access to our broad

range, good service and smart solutions.

In many of our markets, including

Sweden, Denmark, Norway and Germany,

we have our own well developed network

of branches and collection points, while in

countries like Hungary, Italy and the USA

we work through a network of leading dea-

proximity and expansion

Bucharest, Romania

Bargteheide,Germany

Helsinki,Finland

Växjö,Sweden

l indabs lösni

provide support and assistance and build

up strong long-term customer relations on

the basis of mutual trust, confidence, neat-

ness and order.

A rapid response, short decision paths

and a direct and honest approach - these

are things that our customers, both large

and small, can always expect from us.

This proximity to customers has been

achieved by being present in more than

125 locations in 26 countries. Local repre-

sentative offices from Jönköping in

lers and distributors. A growing proportion

of sales in the Profile business area is also

being channelled through local builders'

merchants, both in markets where we have

our own branch network and in those

where we sell through dealers.

CHANGING NEEDS

One of the most important activities to

bring us increased organic growth is the

gradual expansion of our branch network -

both in our existing markets and, not least,

and restructuring in the German and Polish

markets, for example. This work is partly

about finding the best possible geographi-

cal spread of branches, and partly about

being represented in such a way as to

make the most of what we have to offer in

terms of product range, support, opening

hours, service and so on.

Our extensive branch network and

long experience in distribution are a great

advantage in our work on further develo-

ping this central concept. By constantly

l indab l indab's solut ions

assessing, ranking and selecting the featu-

res of our branches that are most important

in customers' eyes, we are establishing

best practice in this area, which means that

we are ensuring that our branch network is

expanded on the best possible basis.

GROWTH THROUGH EXPANSION

Our long experience of continuous growth

through expansion into new markets,

combined with our good insight into custo-

mers' various needs, also has clear advan-

tages when we move into brand new coun-

tries. Our continued expansion in Central

and Eastern Europe is now being stepped

up through our new representative office in

Moscow in Russia and through our increa-

sed focus on markets like Romania and

Croatia. In the USA too we anticipate

growth through a wider presence in the

east of the country, but also through con-

tinued expansion westwards in the longer

term.

Assessing new openings and opportu-

nities for future growth and expansion is a

continuous process. We currently have a

portfolio of complete and detailed plans for

expansion into new markets, primarily

those to the east but also parts of Europe

and the USA where we do not currently

operate. We are also constantly on the

lookout for interesting new acquisitions.

Farum,Denmark

Northampton,UK

PortsmouthUSA

Budapest,Hungary

15

ngar

The new plant outside Prague is a strategic resource for Lindab's

continued eastward expansion.

16

l indab l indab's solut ions

17

Open House Production AB represents

a brand new concept for the construction

of residential and other properties. In a pro-

duction facility reminiscent of a modern car

plant, the company manufactures virtually

complete apartment modules which are

then transported to the building site and

hoisted into place for final assembly. The

company's techniques and methods are

based on architect Peter Broberg's ideas

for building affordable housing for ordinary

people. We met CEO Ulf Åberg at the com-

pany's production facility in Arlöv.

"We're currently supplying 1 200 apart-

ments for the Bunkeflostrand development

in Malmö," he says. "All of our production

is based on an industrial approach with

recurring standardised processes. So

Lindab's solutions fit like hand in glove."

Open House is using steel wall studs, light-

gauge purlins and profiled sheeting from

Lindab for all joist floors, walls and roofs. "It

goes without saying that these products

are ideally suited to industrial production

demanding great precision and consistent

product properties," he continues. "Al-

though other suppliers can also offer this,

what makes Lindab unique and led us to

choose them as our partner is their clear

focus on complete system solutions based

on their extensive expertise and knowhow

when it comes to lightweight construction

techniques and design. Without their invol-

vement in the development of our concept

for industrial, modularised construction, we

would not have come this far this quickly."

Lindab and Open House are continuing

to develop the whole of the system solution

that Lindab is supplying. "It covers everyt-

hing from logistics and delivery planning to

technological development and the use of

Lindab's various software packages for

lightweight construction," says Åberg. "I

want to constantly make our production

and our flows more efficient, which also

means that we're becoming a more effi-

cient customer for Lindab. This is undoub-

tedly making both companies even more

profitable."

advantage: system

Ulf Åberg from Open House (left) in the thick of things at the company's

extensive production facility in Arlöv.

18

Lindab's vision is clear and concise:

"Lindab is to be the quick, flexible and local

partner that delivers high quality in every

way in both of its business areas,

Ventilation and Profile.

"We are to be perceived as the compa-

ny that focuses constantly on meeting

customers' needs and offers solutions that

create more added value and make custo-

mers' life easier than any other."

The whole of our business and all of

our day-to-day activities build on these

ideas - and on our conviction that quality is

something that comes from within as the

result of long-term and methodical work on

improvement.

We now have 47 years' experience of

constantly getting better and better. From

this platform we have built a value chain

which really does provide solutions that

simplify construction for our customers.

Our research and development, our

production technology and optimised use

of raw materials, and our ongoing quality

and environmental work are examples of

processes that are key to our success.

NEATNESS AND ORDER IN

PRODUCTION

The processing of our raw material, sheet

steel, begins at our steel processing cen-

tres. The made-up (sized, cut and trimmed)

sheet is then taken to our various produc-

tion facilities, the most important being

Lindab's competence centres in Grevie

and Förslöv in Sweden, Farum and

Haderslev in Denmark, our new Central

European plant outside Prague in the

Czech Republic, and Budapest in Hungary.

At these sites in particular, but naturally

also at all of our other production units, the

effective management, planning and opti-

misation of resource utilisation is an impor-

tant task.

Anyone who has ever visited one of our

large production facilities will have been

struck by the neatness and order to be

found there, right through from the raw

material reaching the production machine-

ry to the finished packed products leaving

the factory. This is quite simply the result of

our internal expertise and experience when

it comes to production technology and

quality-orientated methods for design, tool

technology, logistics and, not least, large-

scale production systems.

FRONTLINE RESEARCH AND

DEVELOPMENT

Realising our vision, which includes offe-

ring "solutions that create more added

value and make customers' life easier than

any other", relies heavily on our research

and development work. Here our clear

ambition in both business areas is to deve-

lop unique solutions and products that put

us right on the frontline.

In the Ventilation business area, there is

continuous development work in the Air

Duct Systems and Indoor Climate product

areas, with the emphasis on finding innova-

tive new solutions which offer further bene-

fits in terms of function, assembly, airtight-

ness, energy saving and individualised

indoor climate control. The option of carry-

ing out full-scale tests and practical experi-

ments in our air, acoustics and climate

laboratories in Denmark and Sweden is an

invaluable resource in this context.

Work on developing new products and

solutions is also a continuous process in

the Profile business area. New solutions for

optimising load-bearing elements and

improving the soundproofing of interior

partitions, and full-scale tests of load-bea-

ring structures are examples of ongoing

programmes. There is also a clear focus on

improving the properties of the steel we

use, including processing tolerances, coa-

tings and colour durability. This work is

often undertaken in collaboration with our

main steel suppliers.

Research collaborations with universi-

ties play a key role in our research and

development work. We currently have pro-

jects under way with universities in

Sweden, Denmark, Poland, Hungary and

Romania.

Through our internal product commit-

tees - which include representatives from

R&D, production and marketing - and con-

tinuous training for our sales force, we can

then gradually introduce the resulting new

solutions into the marketplace.

FOCUS ON QUALITY AND

ENVIRONMENT

Lindab's operational policy stipulates,

among other things, that we "must con-

tinuously and professionally improve our

performance in terms of quality, environ-

ment, health and safety. We must adopt a

proactive approach to quality with the

focus on customer needs, and we must

always consider the environmental conse-

quences of our activities." This clear decla-

ration leaves no margin for subjective inter-

processes of quality

lindab l indab's solut ions

19

pretation: we simply need to keep on get-

ting better.

We realised the benefits of systematic

and targeted quality work at an early stage.

Two of our production units introduced ISO

9000 certified quality management

systems as early as 1993, making us one

of the first 200 companies in Sweden to

receive this then unique certification.

Today the majority of the Lindab compa-

nies in Sweden have certified quality

systems, as do a further nine Lindab com-

panies in Europe. The transition to the new

ISO 9001:2000 standard is virtually com-

plete.

An ISO standard for environmental

management systems was also introduced

in 1996, and we immediately set about

phasing it in at our production units. When

our first unit was certified to ISO 14001 in

1997, we were again among the first in

Sweden. Today the majority of our

Swedish units are certified to ISO 14001,

as are five of our European production

units.

Worldwide, 18 of our production units

have quality management systems certi-

fied to ISO 9001:2000, and 14 have envi-

ronmental management systems certified

to ISO 14001.

Our business of manufacturing pro-

ducts from sheet steel has only a very limi-

ted impact on the environment. Processes

that could generate emissions to water

take place in closed systems, and dusty air

is continuously treated before release. The

steel that provides the raw material for our

products is recycled once products reach

the end of their lives. By seeking to mini-

mise the consumption of resources in

connection with our products throughout

their lifecycle, we contribute to sustainable

development.

Neatness and order has been one of our core

values for almost 50 years. It applies right along

our value chain, from production to delivery.

Research and development is a vital ingredient

for continued growth. During the year we were

granted more than five new patents and develo-

ped nearly 15 new products.

Full-scale trials are an important part of this

work, which results in better solutions for our

customers. During the year full-scale trials were

performed in connection with opera house pro-

jects in Copenhagen and Oslo and the National

Philharmonic concert hall in Budapest.

Many of our production plants in Sweden,

Denmark and elsewhere are located in areas of

great natural beauty and historical interest which

need to be conserved. Our environmental

commitment has without doubt been influenced

and stimulated by this.

When our products leave the factories and our

logo adorns labels, boxes and signs, this says

far more than just who made them. For our

customers it signals another consignment of

high-quality solutions from a key partner -

Lindab.

20

l indab l indab's solut ions

21

Sydtotal AB is one of Sweden's leading

ventilation companies and a loyal Lindab

customer for many years. The company

operates throughout Sweden and interna-

tionally, taking on everything from the

assembly and installation of ventilation

systems to turnkey HVAC and sanitation

contracts. We met principal shareholder

Erling Pålsson at Lindab's branch in

Malmö.

"Lindab's quality and product range are

naturally of fundamental importance," he

says. "But it's the people here at Lindab

who play the most important role in our

relationship. When we, the customer, dis-

cuss things with Staffan and his people

here in Malmö, there are no long decision

paths to make life difficult and put obsta-

cles in our way. Quick decisions, proximity

and straight answers are what we get here,

just as at all of the other Lindab branches

we work with - and that is exactly what

we're after."

Always feeling welcome is the ingredient

that Erling Pålsson picks out as the key to

Sydtotal's good relationship and close and

rewarding collaboration with Lindab: "This

is a key issue. And there must also be

some of that special twinkle in the eye - we

have so many dealings with each other that

it's great to have a bit of fun together too."

He also highlights Lindab's work on

product development and system solutions

for ventilation technology: "Lindab is defini-

tely the company that has done the most in

this area. Especially when it comes to cir-

cular duct systems, your role as market lea-

der is undisputable. Your branch network

now gives us ready access to all of these

solutions. Rapid and accurate deliveries

give our jobs that all-important flow."

That said, even Lindab can get things

wrong every now and again. "This is when

our close relationship really comes into its

own," Pålsson says. "If you're close to peo-

ple, you're also close to a solution. If

something goes awry, the guys here sort it

out. Simple as that.

"Personally I view many of the people I

work with at Lindab more as personal

friends than as suppliers. So I think you've

come a long way - your added value is

more than just good products and a broad

range. You can always rely on a friend."

advantage: relationship

Christian Lantz at the customer counter at Lindab's

branch in Malmö.

A delighted Erling Pålsson from Sydtotal AB (left) with branch manager

Staffan Hansson at Lindab's branch in Malmö.

22

In autumn 2001 Lindab carried out an in-

depth analysis of its organisation and busi-

ness structure. This led to an extensive

reorganisation in spring 2002, when the

business was divided into two clear busi-

ness areas - Ventilation and Profile - to

sharpen the focus on increased efficiency,

better resource utilisation and profitable

growth as our overriding objectives.

FROM UPHILL TO DOWNHILL

Changes on this scale - a new corporate

structure, new areas of responsibility, new

internal networks and major alterations to

the chain of command - will always impact

on an organisation during the first dizzying

stages. And this was also the case at

Lindab. The fact that we also acquired a

new management team during this period

and had to handle the whole change pro-

cess in the midst of a market slowdown put

real pressure on the organisation.

The new organisation has now been in

place for two years, and we are seeing

clear and very positive results from the

reorganisation in 2002. We have made

appreciable advances in efficiency and

resource utilisation in many strategic areas,

including product development, production

technology, marketing and financial mana-

gement. We are more open internally,

having torn down barriers and stepped up

communication at every level and in every

direction. The national boundaries of the

old organisation have been removed, and

the whole organisation can see the poten-

tial of our new way of working together and

can better apply best practice within the

group. All this is contributing to the emer-

gence of a new and even more business-

orientated corporate culture - one that

retains all of the positive aspects of what

we call the Lindab spirit: motivation, entre-

preneurial spirit and enthusiasm. This is

making the whole organisation a clear

action-orientated cohesive force and

resource for our mutual advancement.

A WHOLE NEW LEVEL

The new organisation, with its increased

transparency and improved information

flows, is now broadly appreciated by our

employees. This new scenario is opening

up new business opportunities and is con-

tributing to the more rapid introduction of

products and system solutions in more and

more of our markets. It is only when people

can actually envisage the opportunities that

their commitment can be assured.

Today we stand far stronger than just

two short years ago. The work in which so

many managers and other employees have

been involved on top of tending to our day-

to-day business, together with the produc-

tion transfers and staff cutbacks introdu-

ced, has been a major challenge, especially

a strong organisation

for those directly affected. But this has all

been necessary. Standing on the threshold

of a better and stronger market, the whole

group is now ready in a whole new way to

generate profitable growth in line with our

long-term targets.

Lindab's great strength has always

been its employees' expertise, commit-

ment, initiative and enthusiasm. Today this

strength is even greater thanks to our

workforce of more than 3 800 dedicated

employees, and the dynamism and will to

constantly get better, more efficient and

more profitable can be seen throughout the

organisation.

l indab l indab's solut ions

23

Working together towards common goals with motivation, entrepreneurial spirit and enthusiasm has long

characterised the unique Lindab spirit.

24

Air Duct Systems is the central product area in the Ventilation business area. It comprises a

complete range of products and fittings for the construction of both large and small ventila-

tion duct systems of every conceivable dimension. The combination of a very broad product

range and unique product solutions makes Air Duct Systems the natural choice for easily

fitted, airtight and energy-efficient duct systems. Lindab has been the world's largest produ-

cer of circular duct systems for several years now.

l indab vent i lat ion business area

25

ventilationbusiness area

summary

The Ventilation business area generated sales of SEK 2 965 M (3 071) and EBITA of SEK

160 M (193). Adjusted for non-recurring costs in 2003 and capital gains on the sale of pro-

perties in 2002, EBITA was unchanged from 2002.

Central and Eastern Europe and the Finnish and French markets performed well. Growth

in other markets was more cautious. Since the market as a whole contracted, Lindab was

nevertheless able to increase its share of most of its markets in both Europe and the USA.

Strategic acquisitions were made in Switzerland and Denmark during the period to fur-

ther strengthen our position as a system supplier.

A new Central European production plant was built, inaugurated and started up outside

Prague in the Czech Republic. This is Lindab's single largest investment yet and has

resulted in both substantially more cost-effective production and greater proximity to our

important growth markets.

McCullough in the USA, while the machi-

nery business is headed by Christer

Brovinius.

PRODUCTS

The Ventilation business area comprises

three main product areas (Air Duct

Systems, Indoor Climate and IT Solutions)

aimed at installers, consultants and archi-

tects in the ventilation and indoor climate

sector:

Air Duct Systems is our range of circular

ducts, duct fittings, rectangular

duct products and hoods.

These products are used in

the construction of ventila-

tion systems. New moder-

nised T-pieces, bends and

reducers were launched during

the year.

Indoor Climate comprises three ranges of

systems and products which together

make for a pleasant, healthy and produc-

tive indoor climate with good air circulation,

pleasant temperatures and low noise levels

from fans and duct systems. A new range

of diffusers, beams and grilles of uniform,

coordinated designs and colours was laun-

ched under the name of Designline during

the year and has been warmly welcomed

by architects and others.

Comfort is our range of diffusers, grilles

and dampers used to regulate

and control the flow of air in

a room.

Climate is our range of chilled beams,

facade systems, ceiling heating

and control solutions that

impact directly on comfort

and temperature in a room.

Beams with in-built light

fittings were launched during

the year, along with a new con-

densation control unit.

The Ventilation business area compri-

ses the group's business in ventilation and

indoor climate systems and has three

parts: the European operation, the US ope-

ration, and the production of machinery at

Spiro S.A. in Switzerland and Spiral-Helix

Inc. in the USA.

Ventilation's core business is the Air Duct

Systems product area - the manufacture,

marketing and distribution of circular and

rectangular duct systems. Lindab is the

world's largest manufacturer of circular

duct systems.

A range of accessories has gradually

been added around this central product

system, which - along with our IT tools -

enable us to market competitive and com-

plete system solutions for the ventilation

and indoor climate sector.

The business area's hallmarks are a

broad and well proportioned product port-

folio, high-quality system solutions and

logistics, and proximity to the market.

Through many years' investment in re-

search and development, including at our

own world-leading air and acoustics labo-

ratories, we have built up stable expertise

and unique knowhow in ventilation and

indoor climate technology. This makes us a

partner well equipped to meet the market's

need for system solutions and components

for a pleasant and productive indoor climate.

The ventilation business is headed by

Johan Bergkvist in Europe and Dick R.

26

Acoustics is a broad range of silencers for

a quiet and pleasant indoor

environment.

We command a very

strong position in the Air Duct

Systems product area in the Scandinavian

and German markets, and are the market

leader in Denmark. The best growth pro-

spects in the Scandinavian market are in

the Indoor Climate product area, which we

believe to have great potential.

Elsewhere in Europe there is scope to

improve our position in all product areas. In

the immediate future we anticipate increa-

sed sales of both circular duct systems and

the more technical Indoor Climate pro-

ducts. Since rectangular duct systems are

l indab vent i lat ion business area

Sales, SEK M 2 965

EBITA, SEK M 160

Operating margin, % 5.4

Investment in fixed assets

(gross), SEK M 125

Average number of employees 2 462

of which in Sweden 629

2003

An indoor climate with good air circulation and a pleasant temperature is vital

for productivity and comfort, as here in the Hasselblad building in Gothenburg.

ITline is our unique portfolio of user-friend-

ly and time-saving software

packages for ventilation

and indoor climate

systems. These tools are

used by HVAC engineers,

consultants and architects in

the design and production documentation

phases of each construction project. This

work leads to the all-important specifica-

tion of individual products through the

documents and bills of materials genera-

ted. These documents produced by the

HVAC engineer also provide the basis for

the installer's tender. By generally increa-

sing the proportion of Lindab products

specified in these key documents for pro-

duct selection, we significantly increase the

chances of increased sales in the

Ventilation business area.

New versions of the DIMsilencer and

TeknoSIM acoustics and heating packages

were introduced during the year. In the USA

we also launched the new LinPro package

for distributors and installers, which links

together the design, tender/order and deli-

very phases in an elegant project manage-

ment tool which makes both customers'

and our own tendering processes more

efficient.

IMPORTANT EVENTS

A new Central European production facility

was built and taken into use in the Czech

Republic, and two strategic acquisitions

were made.

The new factory outside Prague gives

the business area a modern and cost-

effective production plant of more than

25 000 square metres in a growing Central

European market. The investment has led

to production changes at our factories in

Sweden and Denmark through the transfer

to the Czech Republic of the production of

some duct fittings and diffusers, for exam-

ple. The same goes for some of the local

production that previously took place in

Central Europe.

The acquisition of FEA in Switzerland

and Bravida's duct manufacturing busi-

ness in Denmark during the year has in-

creased our resources in the Ventilation

business area. These acquisitions form part

of our plan to take part in the restructuring

of the market brought on in part by the sub-

dued market climate.

These acquisitions have brought the

business area both new production capaci-

ty and new production technology in rec-

27

Duct systems 61% (61)

Indoor climate 18% (16)

Machinery 4% (5)

Ventilation accessories 17% (18)

ventilationbusiness area

still dominant in many European markets,

we have strengthened our position in this

area too, partly through acquisitions. This

not only increases our competitiveness as

a system supplier but also opens up inte-

resting opportunities to market and intro-

duce circular duct systems and their bene-

fits more effectively. The standardisation of

our broad product range into a smaller

number of locally customisable variants is

an important element in the product deve-

lopment work under way in these two cen-

tral product areas.

SALES BY PRODUCT GROUP

Nordic region 48% (47)

Other markets 1% (1)

Central and Eastern Europe 5% (4)

Western Europe 36% (37)

USA 10% (11)

SALESBY MARKET

tangular duct systems. This gives us a

more favourable position in the market as

we can now offer a more comprehensive

system solution to installers of both circular

and rectangular duct systems together with

a wide range of indoor climate products.

Our position as system supplier in the

Swiss market has been advanced signifi-

cantly by these acquisitions. Here the

acquisition has been integrated into a wider

restructuring programme, which has inclu-

ded transferring the bulk of local produc-

tion to the new facilities in Eiken.

SALES AND MARKETS

The business area's sales fell to SEK 2 965

M (3 071) in 2003, equivalent to 56% (58) of

the Lindab group's sales. Adjusted for cur-

rency effects and structural changes, sales

were unchanged from 2002.

Operating profit amounted to SEK 160

M (193). Adjusted for non-recurring costs in

2003 and capital gains on the sale of pro-

perties in 2002, operating profit was

unchanged from 2002.

The European market was hit by weak

demand in the construction sector, which

impacted on the business area's sales.

Newbuild, rebuild and renovation activity all

fell, and did not partially balance each other

out as in the past. Volumes in the ventila-

tion and indoor climate sector as a whole

fell by around 10%, leading to increased

pressure on prices and excess capacity.

However, for Lindab's Ventilation busi-

ness area this meant a clearly stronger

market position since we managed to

maintain volumes at a level unchanged

from 2002.

The weakest markets were Germany,

Sweden and Norway. Our sales in Central

and Eastern Europe are continuing to grow,

albeit from a low level. France and Finland

performed well, and we reported good

results there in 2003.

Structural measures were introduced

during the year in Germany, Switzerland

28

and the UK affecting both production and

distribution.

A number of new markets were

assessed during the year, and several

concrete expansion plans have been pre-

pared in anticipation of the right time to

move.

The business area also prepared a

detailed marketing plan during the year. It

turns the spotlight onto a wealth of coordi-

nating activities whose ultimate aim is to

generate increased profitable growth.

Growing the overall use of circular duct

systems, especially outside the Nordic

region, is an important part of our activities.

Another is a more in-depth understanding

of pricing in our value chain, especially

given the growing price pressure in the

market. The restructuring and reallocation

of the branch network also began during

the year in a bid to further strengthen our

presence in a number of important markets

in Europe.

We will continue to target, support and

provide information for HVAC engineers,

consultants and architects. These groups

are not paying customers but are neverthe-

less important in their capacity as providers

of specifications, and so impact indirectly

on tender volumes. Adding value for these

groups too will boost our sales and growth.

Energy consumption and the indoor

climate are increasingly important issues in

modern society. The trend in the Western

World towards more airtight buildings is

generally increasing the need for well func-

tioning ventilation systems. More and more

is also being asked of the airtightness and

function of the actual ventilation system so

as to minimise energy consumption. Given

the unique quality, airtightness and function

of our system solutions, we see good

potential for strong growth from this per-

spective too.

USA

Caution has affected the level of long-term

investment in the USA since 11 September

2001. This has resulted in a sharply falling

market for ventilation duct systems, which

has limited Lindab's growth opportunities

in North America. Despite the weak market,

Lindab has managed to expand in the

USA, growing its market share by 8% in

2003. Sales totalled USD 38 M (35). The

market is expected to grow marginally in

2004.

Despite the weak growth trend in the

market, Lindab expects to grow quickly

and in line with the plans laid. The slightly

improved market will afford Lindab good

opportunities to exploit the benefits of its

position as the largest supplier of circular

duct systems in North America.

A complete indoor climate solution was

supplied for Hasselblad's new headquar-

ters during the year.

l indab vent i lat ion business area

Schools are among Lindab's focus areas in

the USA.

MACHINERY PRODUCTION

The companies Spiro S.A. and Spiral-Helix

Inc. develop, manufacture

and market machinery for

the production of spiral

ventilation ducts and fit-

tings. We command a mar-

ket-leading position in this seg-

ment, which focuses on the ventilation

industry in Europe, Asia and North

America. Production was concentrated at

the facilities in Switzerland during the year.

COMPETITION

The Ventilation business area has relatively

few global competitors that can offer the

same breadth of range and local presence.

However, there are a number of major

players in the various product areas with

considerable power and a strong market

position. Close monitoring means that our

knowledge and information in this area is

very good.

The prevailing market climate has

increased the frequency of closures, mer-

gers and acquisitions in the sector. We

have exploited this situation through ac-

quisitions and a continued intensive marke-

ting drive, which has increased our market

share in both Europe and the USA.

Our most important competitors are

Fläkt Woods AB, Aldés S.A. and C.

Hallströms Verkstäder AB in the Air Duct

Systems product area; Stifab Farex AB,

Halton Oy, Fläkt Woods AB and Gebrüder

Trox GmbH in the Indoor Climate product

area; and the software packages

MagiCAD, LiNear, CATS and Map in the

ITline product area.

OUTLOOK

2004 will be another tough and demanding

year, which will be mostly about retaining

our position, restructuring our operations

and continuing to prepare for the market

recovery which we do not expect to see

until late 2004 and early 2005.

An extensive marketing campaign "the

round solution" will be launched in Europe

in 2004 to highlight the benefits of standar-

dised circular duct systems in terms of

economy, function and assembly, together

with the local presence, support and exper-

tise that we have to offer. The campaign will

be a key element in our work to increase

the proportion of circular duct systems in

the European market, and will run for a long

period.

Effectively and convincingly selling the

added value that we offer is vital for our

success. By strengthening the professiona-

lism of our sales force, we hope to grow

even stronger.

Work on productivity and efficiency will

continue throughout our value chain, inclu-

ding production, administration and sales.

One of the most highly prioritised jobs in

2004 will be to turn around earnings in the

German, Swiss and UK markets.

The ongoing evaluation and evolution

29

Products from the Air Duct Systems product area have found homes as diverse as bowling alleys and modular pro-

cess facilities for the international pharmaceutical industry.

of our distribution network will continue

during the year so that we achieve the opti-

mum utilisation of our distribution resour-

ces on the basis of market needs.

When the market finally does turn, we

will stand extremely strong, well prepared

and well equipped for a pronounced

growth scenario with good profitability. We

expect this to happen in late 2004 and early

2005.

30

Rainline is one of the Profile business area's two

key product areas. It offers a complete range of

guttering, downpipes and accessories for efficient

roof drainage.

With more than 60 different products, the

system can meet a great diversity of needs and is

aimed both at professionals, such as sheet metal

workers and building contractors, and at the DIY

market. A variety of product solutions ensure rapid

and safe assembly, and a broad choice of colours

makes Rainline suitable for all types of environ-

ment and building.

l indab prof i le business area

31

profilebusiness area

summary

The Profile business area increased its sales by 8% to SEK 2 003 M (1 859). EBITA amoun-

ted to SEK 155 M (160), affected by narrower margins due to the increased price of sheet

steel.

The business taken over through the acquisition of Butler Europe Kft. in 2002 is now

almost fully integrated into our other operations in the Building System product area.

There was continued growth in the business area's system sales in the form of hall and

building systems in the Building System product area.

Growth is continuing in Central and Eastern Europe, but with the focus gradually shifting

further eastwards. There was increased price pressure in Scandinavia.

The Profile business area comprises the

group's business in products and product

systems for the construction sector, and

operates exclusively in Europe. On 1 March

2004 Anders Persson left his position as

business area manager at Profile to beco-

me HR director at group level. Peter

Andsberg took over as business area

manager at Profile on the same day and will

be based in Hungary, which has been

Profile's largest growth market in recent

years.

PRODUCTS

The Profile business area's products and

system solutions are aimed at the con-

struction industry and building contractors

in all three regions and at the sheet metal

working industry in Sweden, Norway,

Finland and Central and Eastern Europe.

Parts of the product range are also sold in

the DIY market. Six main product areas

have been defined in this business area:

Rainline is the market's broadest range of

products for effective and safe

roof drainage. It consists of

more than 60 components

and offers straightforward

and uncomplicated assem-

bly of guttering and downpipes.

Products are divided into a standard

range and a special range for professional

users such as sheet metal workers and

building contractors. There was a gradual

shift towards high-build polyester-coated

steel during the year, which has advanta-

32

ges both in the manufacturing process and

in the form of easier handling during

assembly and a better environmental per-

formance.

Coverline is a wide range of profiled sheet

metal wall and roof cladding in

different designs and

colours. These products

offer strong and durable

cladding with a long life and

cost-effective assembly. The

range extends from tile-like roof plates

through trapezoid sheeting to floor-decking

for roof and joist floor construction. Here

too there was a continued shift towards

high-build polyester-coated steel for sur-

face-treated products.

Construline is Lindab's building compo-

nent range for modern steel

structures using steel wall

studs, light-gauge purlins,

battens etc. The benefits of

building with steel are consi-

derable. Lightweight construc-

tion results in better overall economy and

superior workplace ergonomics. Factory-

made and delivery-marked lengths elimi-

nate wastage and result in a clean and

easily worked workplace.

The use of steel studs in infill walls and

of steel for flat-to-pitch conversions is gro-

wing in volume. The development of IT

tools for design and estimation in this pro-

duct area continued during the year.

One of the most high-profile contracts

in this area in 2003 was the supply of steel

wall studs, light-gauge purlins and profiled

sheeting for what is currently the largest

residential construction project in Sweden,

the Bunkeflostrand development, where all

apartments are being prefabricated

industrially in separate modules and then

transported to the building site for final

assembly. Growth in the use of this ground-

breaking technique is believed to be likely,

which means potential for further growth in

this product area.

Doorline is a range of garage and indust-

rial doors. A CFC-free sand-

wich design with embossed

steel cladding results in a

well insulated, durable and

aesthetic door. Both garage

and industrial doors are fitted

with Lindab's unique crush and drop pro-

tection solutions. Some production in this

product area was transferred to external

suppliers in Central Europe during the year,

resulting in a more favourable cost picture

for these products. This is expected to

result not only in increased component

sales in this expansive region, but also

increased use of Doorline in supplies of

halls and building kits in the Building

System product area.

Sales, SEK M 2 003

EBITA, SEK M 155

Operating margin, % 7.7

Investment in fixed assets

(gross), SEK M 61

Average number of employees 1 206

of which in Sweden 412

2003

lindab prof i le business area

The Rainline roof drainage system on a

house in Fårö, Sweden.

SALES BY MARKET

SALES BY PRODUCT GROUP

Building System is a range of prefabrica-

ted building kits, consisting of

a steel frame and other

materials for an entire buil-

ding. One side of this pro-

duct area consists of prefa-

bricated building kits which are,

in principle, of unlimited size, design and

function. The other side comprises smaller

and more straightforward farm, warehouse

and industrial buildings.

Thus the product area spans all types

of prefabricated industrial and commercial

building for a wide range of different needs

and standards.

Familyline is a range of prefabricated buil-

ding kits for individual resi-

dential units, marketed

exclusively in Central and

Eastern Europe.

SALES AND MARKETS

The business area's sales grew by 8% to

SEK 2 003 M (1 859) in 2003, equivalent to

38% (35) of the Lindab group's sales.

Operating profit amounted to SEK 155

M (160). Increases in steel prices during the

period put pressure on margins.

The market in Sweden, Norway and

Finland was hit relatively hard by stagnating

construction activity. Nevertheless we lar-

gely succeeded in maintaining volumes,

and in Sweden we noted an interesting

new trend as sales of steel wall studs to

builders' merchants grew at the expense of

traditional wooden studs.

The business area made more positive

progress in the UK, which is the reason for

the initiative currently under way there.

There was a major reorganisation during

the year, which included the recruitment of

new personnel to focus on increasing

sales, primarily of products in the Rainline

range. This will provide a platform for gra-

dually stepping up sales in the other pro-

duct areas.

Developments in Denmark were in line

with the other Nordic countries, while

Germany was even harder hit by the pre-

vailing climate of weak growth, causing

sales to stagnate.

To improve our competitiveness in

Poland, the distribution system is being

expanded and two new branches are being

opened this year. These measures will

increase Lindab's presence in an expan-

sive market.

In the Czech Republic the business

area's production and sales were trans-

ferred to the new Central European plant

outside Prague. The Romanian market per-

formed very well, and new product areas

have gradually been added to existing

ones. Romania is also responsible for

developing Bulgaria through a new repre-

sentative office in Sofia.

Hungary is increasingly approaching

maturity as a market with a more normal

rate of growth. However, it will remain a

very important base for Lindab's continued

expansion eastwards, with potential mar-

kets including Russia. Hungary is also

33

Sheet metal, profiles,

steel buildings and doors 65% (62)

Roof drainage systems 20% (22)

Sheet metal working accessories 15% (16)

Nordic region 51% (56))

Central and Eastern Europe 40% (35)

Western Europe 8% (8)

profilebusiness area

Other markets 1% (1)

responsible for our initiatives in Bosnia,

Serbia and the Ukraine, where we have our

own representative offices.

The Building System business at

Lindab Butler is based in Hungary. It has

completed its first full year as part of the

group and is gradually being integrated

with other Lindab companies in the pro-

duct area. The business performed well,

winning many large contracts during the

year.

An increased push into Russia began

during the year with the opening of a new

representative office in Moscow, which is

now being built up. The potential here -

especially for the hall solutions at Building

System but also for the Rainline, Coverline

and Construline component ranges - is

believed to be very good. A large number

of halls were sold in this market during the

year, and the figures for component sales

were also good.

34

COMPETITION

The Profile business area operates in a rela-

tively fragmented European market with

few large players and many small players.

Lindab is unique in being able to market

such an extensive range of steel building

components and system solutions.

Some new trends in the competitive

situation can be seen in the form of increa-

sed competition in the markets of Central

and Eastern Europe. Many of our main

competitors, such as Finland's Rannila

Steel Oy, are clearly focusing on this region,

both through intensified sales initiatives

and through local production. In Poland, for

example, we are seeing many smaller pro-

ducers growing larger in terms of both

volumes and product range. This trend will

require us to be very alert, proactive and

ready to step up a gear. Always to be

better at quality, logistics, proximity and

total solutions remains our strategy.

The enlargement of the EU in spring

2004 will move customs boundaries in

such a way that being competitive in a mar-

Sheet metal roof tiles for residential use from the Coverline product area and complete

hall building kits from the Building System product area illustrate the breadth of the Profile

business area.

ket like Russia will require local production.

The EU's enlargement also means that the

area covered by European standards will

be greater, which can only be seen as an

advantage for us since we have been wor-

king to these standards for so long.

In the Rainline product area,

Germany's Rheinzink GmbH & Co. KG,

Sweden's Plannja AB and Britain's Marley

Extrusions Ltd. are strong competitors. In

Scandinavia, Icopal a/s has increased its

focus on this area through the acquisition

of Wijo AB, whose relatively aggressive

position in the Swedish market impacted

on our sales to Swedish builders' mer-

chants in 2003. Rannila Steel Oy's move

into Hungary, with its own production and

intensified marketing, is another notable

development.

In the Building System product area,

our main competitors include Remco

Building Systems BV, Atlas Ward GmbH

and Astron Buildings. Astron is in the pro-

cess of starting up production in Russia.

l indab prof i le business area

OUTLOOK

A number of areas will be of particular

importance in 2004 and subsequent years.

We need to continue our initiatives in the

Rainline product area, and we need to

increase the market share of our halls and

building systems in the Building System

product area. Russia, many of the other

countries in that region, and the UK are

markets where we aim to grow - and do so

profitably. We need to concentrate more

on prices and pricing, especially in a sce-

nario where the price of our sheet steel raw

material is rising.

Our focus on growth in Central and

Eastern Europe is becoming increasingly

important for the business area. Our well

functioning business concept based on

quality solutions, logistics, proximity and a

broad product range is well suited to con-

tinued expansion in these markets.

In 2004 we expect to maintain our

position in the Western European markets,

and anticipate continued rapid expansion

in Central and Eastern Europe. The initiati-

ves under way in the UK and Poland are

expected to have a positive impact during

the year. In the markets that are still being

subdued by a climate of caution, our goal

is to win market share from our competi-

35

A warehouse and distribution facility in Sweden.

tors, possibly without any significant

growth in absolute terms. We are stepping

up our initiatives and sales promotion acti-

vities in the Rainline product area. We are

also seeing a trend for steel as a building

material to win market share from the more

traditional wood on account of its many

benefits.

Work on increasing the efficiency of our

production and production structure is

continuing. Key elements here include the

use of new materials and methods and an

increased proportion of production closer

to local markets.

All in all, we anticipate a good perfor-

Standing seams from the Coverline product area in high-build polyester-coated

steel. This new type of steel is being used increasingly for all coated products.

Pendennis Shipyard in England builds yachts in steel halls

from Lindab.

mance by the business area. Given the

restructuring and rationalisation measures

implemented, we stand very well equipped

for profitable growth at the expected levels

once the market turns.

Folke i Borlänge is part of Lindab's other business.

36

The group's other business comprises

a steel service centre and steel processing

for external customers.

Folke i Borlänge AB is one of Sweden's

leading steel service centres. Its core busi-

ness consists of cutting and slitting sheet

metal, perforating most materials in most

hole sizes to the customer's specifications,

and supplying commercial steel - beams,

tubes and bars.

Thanks to high delivery precision and

reliability, combined with a clear commit-

ment to quality and the environment, Folke

i Borlänge offers a complete solution to all

of its customers' steel service needs.

Folke i Borlänge performed well during

the year, and was able to increase its mar-

ket share through clear sales growth.

The galvanising business at JiWeGalv

in Sölvesborg and Eskilstuna Galvan in

Eskilstuna was sold during the year to

Danish company Dansk Overflade Teknik

A/S (DOT), and is included in the sales and

earnings figures for other business for the

first nine months of the year.

other business

lindab other business

Music and media centre Rock City was built using lightweight

construction technology from Lindab. Steel wall studs and purlins

from the Construline product area, floor deck from the Coverline

product area and roof drainage from the Rainline product area

were used for the whole 5 000 m2 building.

37

SALES BY MARKET

SEK M 2003 2002

Nordic region 2 780 2 822Western Europe 1 235 1 253Central and Eastern Europe 955 784 USA 306 333 Other markets 26 43

TOTAL 5 302 5 235

administration report

38

l indab administrat ion report

Lindab Intressenter AB, reg. no. 556606-5446, is owned by RatosAB (48.2%), Livförsäkringsaktiebolaget Skandia (23.9%), the SixthSwedish National Pension Fund/AP6 (23.9%) and its board, mana-gement and senior executives (4.0%).

THE BOARD AND CHIEF EXECUTIVE OFFICER HERE-BY SUBMIT THEIR ANNUAL REPORT FOR 2003

SALESIn 2003 the Lindab group generated sales of SEK 5 302 M (5 235),an increase of 1%. The appreciation of the SEK reduced salesgrowth by three percentage points, while the year's acquisitionsand disposals added one percentage point and higher volumesadded a further three.

Products equivalent to 83% (82) of sales were manufacturedwithin the group.

Sales outside Sweden amounted to SEK 3 828 M (3 761), anincrease of 2%, and were equivalent to 72% (72) of the group's totalsales.

There was particularly strong growth in Central and EasternEurope. Lindab has built a new production facility in the CzechRepublic for both its circular ventilation products and its sheet metalproducts for the construction industry. The 25 000 m2 plant wastaken into use at the beginning of 2004.

MARKETLindab's sales are affected by demand from the construction sec-tor. This applies in particular to the Profile business area, whichmanufactures products for the construction industry.

The Ventilation business area is increasingly being affected bygrowing awareness of the importance of indoor climate for health.Increased use of heat-generating electronic equipment in officeshas increased the need for good ventilation equipment, andLindab's system solutions in circular ventilation are well placed inthis respect.

Gross profit fell to SEK 1 275 M (1 304), due primarily to highersheet steel prices. Operating profit fell to SEK 187 M (211), due inpart to capital gains of SEK 10 M on the sale of properties in 2002.Profit after financial items came to SEK 92 M (83). Net financialitems improved by SEK 33 M to SEK -95 M (-128).

The average interest rate including exchange differences was5.4% (6.2). Net profit for the year was SEK 26 M (21). The year's taxcharge was SEK 66 M (62), equivalent to a tax rate of 72% (75).Adjusted for non-allowable goodwill amortisation, the tax rate was31% (31).

ASSETSThe Lindab group's total assets decreased by SEK 120 M to SEK5 178 M (5 298) during the year.

FIXED ASSETSThe total value of the group's fixed assets fell by SEK 245 M to SEK3 264 M (3 509), due largely to the appreciation of the SEK, whichled to translation differences of SEK 62 M. The galvanising busi-ness at JiWeGalv AB and Eskilstuna Galvan AB was sold during thesecond half of the year, reducing fixed assets by SEK 23 M.Goodwill amortisation of SEK 118 M was also recorded.

INVESTMENTSGross investment in fixed assets amounted to SEK 195 M (176) andbreaks down as follows: intangible assets SEK 13 M (11), propertySEK 22 M (33) and machinery and equipment SEK 160 M (132).

The bulk of the investment in machinery was expansion-relatedrather than efficiency- or maintenance-related.

CURRENT ASSETSStock increased by SEK 3 M during the year and amounted to16.2% (16.3) of the group's sales at the year-end.

Accounts receivable totalled SEK 702 M (670) at the year-end,equivalent to 41 days' sales net of value-added tax.

LIQUID FUNDSThe group's liquid funds totalled SEK 220 M (108) at the year-end.

Available funds including unused credit facilities totalled SEK 1 370 M (1 353).

LIABILITIESThe group's net debt - interest-bearing liabilities and provisions lessliquid funds - amounted to SEK 1 791 M (1 931), including pensionprovisions of SEK 61 M (57). Interest-bearing liabilities and provi-sions fell by SEK 28 M to SEK 2 011 M (2 039).

The debt/equity ratio was 0.8 (0.9) at the year-end.

CASH FLOWCash flow from operating activities before changes in working capi-tal amounted to SEK 319 M (330).

Cash flow from operating activities after changes in workingcapital amounted to SEK 395 M (118).

EARNINGSEarnings growth accelerated over the course of the year despiteweak market conditions. There was a focus on cost-cutting andefficiency, which had a positive effect on earnings and will have itsfull impact in 2004.

Restructuring costs of SEK 14 M were incurred in 2003. Thesale of the galvanising business at JiWeGalv AB and EskilstunaGalvan AB generated a capital gain of SEK 15 M.

Depreciation and amortisation amounted to SEK 285 M (300).

KEY BALANCE SHEET ITEMS

SEK M 1999 2000 2001 2002 2003

Stock 585 811 818 853 856% of sales 16.4 18.4 15.9 16.3 16.2Accounts receivable 494 651 718 670 702% of sales 13.8 14.8 13.9 12.8 13.2Accounts payable 243 358 395 494 452% of sales 6.8 8.1 7.7 9.4 8.5

39

during the year. The group has no environmental liabilities, and thebusiness is not of a type that causes the contamination of land orwater resulting in a need for clean-up measures. Nor are there anycontaminated buildings that could result in future costs.

Environmental insurance has been taken out for operationsundertaken at properties in Sweden and provides cover for liabilityfor damages in accordance with the Swedish Environmental Code.

THE BOARD AND ITS PROCEDURESThe board has eight full members and three deputy members elec-ted by the general meeting. The members and composition of theboard are presented on pages 62-63.

The board convened on eight occasions during the year, inclu-ding twice per capsulam and once in connection with a visit to thegroup's companies in Denmark.

The chairman and CEO were in regular contact between meetings.

The board's work follows a set agenda to ensure that the boardreceives the necessary information ahead of resolutions.

The board has adopted written rules of procedure and instruc-tions for the division of duties between the board and CEO.

Besides following up and reporting on ongoing business ope-rations and profitability, the board's work includes issues relating toacquisitions and major investments and to financial structure.

The group's chief financial officer always attends board meetings.

The business area managers attended meetings during theyear and reported on strategic and other important issues in theirrespective areas.

The company's auditors attend at least one board meetingeach financial year where they present any observations andrecommendations arising from their audit.

Lindab's chief legal officer serves as secretary to the board.

PROFIT-SHARING SYSTEM Since 1980 Lindab has made payments to a profit-sharing founda-tion for employees in Sweden. The annual payments are based onthe earnings of Swedish group companies. As of 2001 the founda-tion's funds are to be invested in Ratos shares.

PERSONNELThe average number of employees in the Lindab group increasedby 154 to 3 920 (3 766). The average number of employees inSweden was 1 303 (1 366), equivalent to 33% (36) of the work-force. The number of employees at the year-end was 3 874 (3 835).

Information on staff costs and the average number of em-ployees can be found in Note 1.

The group's strategic direction, with its sharp focus on systemsales, quality and delivery precision, asks a great deal of em-ployees both in customer-facing positions and in development andproduction.

Goal orientation, increased delegation of responsibilities andpowers, and increased commercial orientation are examples ofchanges that have been made or are under way to alter the mana-gement of the business. This entails new roles for both managersand other employees.

FACTORS IMPACTING ON EARNINGSEconomy The Lindab group is affected by the general economic climate, pri-marily in Europe and the USA. Above all, sales are influenced bydemand from the construction sector. This applies first and fore-

ACQUISITIONS AND DISPOSALSTwo acquisitions and one disposal were made during the year.Swiss ventilation company FEA was taken over with effect from 1May. The company has 62 employees and generated sales of CHF11 M in 2002. The FEA group has three factories in Switzerland andcomplements Lindab's existing business well geographically. Theacquisition made a positive contribution to the Lindab group's ear-nings in 2003. The FEA group will be merged with Lindab BartholetA.G. in Switzerland in 2004.

Bravida's duct manufacturing business in Denmark was acqui-red with effect from 31 December and is forecast to generate salesof DKK 14 M in 2004.

The operations of the German company J. Götze & M. LauscherLuftkanäle GmbH were acquired with effect from 1 January 2004.They will be integrated with Lindab's German group companies andwill strengthen Lindab's duct business, especially in easternGermany. The business is expected to generate sales of SEK 45 Min 2004.

In October Lindab's galvanising business was sold to Danishcompany Dansk Overflade Teknik A/S (DOT), which operates in thegalvanising industry mainly in the Danish market.

PRODUCT DEVELOPMENTProduct development is a continuous process in each businessarea. The Lindab group's development departments focus consi-stently on product development with a view to developing readilyassembled products and system solutions in sheet metal that offerbenefits in the form of better economy, better function and betterenvironmental properties. Through dialogue with customers Lindabmaps the market's future needs, and this forms the basis for aninnovative product strategy. Lindab plans to increasingly exploit thesynergies between the group's business areas.

Development costs totalled SEK 36 M in 2003, breaking downinto SEK 25 M at Ventilation, SEK 9 M at Profile and SEK 2 M forother business.

The number of employees in the group's product developmentdepartments was 53: 35 at Ventilation and 18 at Profile.

Product development is also discussed in each business areareport.

ENVIRONMENTThe group's business consists of the manufacture of products fromsheet steel. Given the production processes and products involved,environmental impacts are limited.

Two of the Swedish group companies require permits andseven must register under the Swedish Environmental Code. Thesepermits are for an engineering business with a shop floor in excessof 20 000 square metres and for the surface treatment of metals.

Impacts on the environment consist mainly of emissions ofdust, the discharge of metals into wastewater, and noise from traffic and ventilation facilities. The two galvanising units were sold

40

l indab

most to the Profile business area with its broad range of sheet metalproducts for the construction industry. Sales outside Swedenaccount for 72% (72) of the group's total sales, which serves tospread risks across different markets and also to even out variationsin economic activity.

Raw materials The group's annual consumption of sheet metal, primarily hot-dipgalvanised and coated sheet steel, is around 250 000 tonnes (230000). A 2% change in the average price of sheet metal will increa-se/decrease the group's operating profit by around SEK 25 M, assu-ming unchanged net selling prices.

TRANSITION TO IFRSS IN 2005In 2005 Lindab will begin reporting in accordance with InternationalFinancial Reporting Standards (IFRSs), as will be compulsory for alllisted companies in the EU from 2005.

In 2003 an analysis was carried out to identify how the group'scurrent accounting policies depart from IFRSs. The transition willnot impact on Lindab's equity.

The single largest departure relates to the treatment of pensionbenefits in IAS 19, which corresponds to the Swedish FinancialAccounting Standards Council's Recommendation RR 29, whichenters into force in 2004. Another proposal for 2005 is that goodwillshould no longer be amortised on a straight-line basis but insteadon the basis of a compulsory annual review of the need to recog-nise any impairment loss. The reporting of financial instruments willmean that more instruments will be reported at fair value. Goodwillamortisation of SEK 118 M (114) was recorded in 2003.

OUTLOOK FOR 2004The Lindab group anticipates weak growth in demand in 2004. Anextensive change process is under way within the group to further

administrat ion report

50

70

90

110

130

150

2003200220012000199919981997

SHEET STEEL PRICE INDEX

The diagram above shows the average price of hot-dip galvanised sheet

steel. Jan 1997=100. Source: MEPS

reduce costs and increase efficiency. The group is also alert to newbusiness opportunities.

Surging demand for steel in China and Asia in general, togetherwith increased costs for raw materials like coal and ore, causedworld market prices for steel to climb sharply during the first quarterof 2004. This trend is expected to persist during the year.

POST BALANCE SHEET EVENTSThe operations of the German company J. Götze & M. LauscherLuftkanäle GmbH were acquired with effect from 1 January 2004.They will be integrated with Lindab's German group companies andwill strengthen Lindab's duct business, especially in easternGermany. The business is expected to generate sales of SEK 45 Min 2004.

On 1 March 2004 Anders Persson left his position as businessarea manager at Profile to become HR director at group level. PeterAndsberg, previously regional manager for Central and EasternEurope, took over as business area manager at Profile on the sameday and will be based in Hungary, which has been Profile's largestgrowth market in recent years.

PARENT COMPANYLindab Intressenter AB's business is to develop, manufacture andsell sheet metal products and building systems for the ventilationindustry and the construction sector directly or indirectly via groupcompanies. The company is also to own and manage real andmoveable property, securities and shares in group operating com-panies. The company has no employees and paid no salaries orother benefits in 2003. Its financial results and position can be seenfrom the following income statement and balance sheet with theassociated notes.

PROPOSED COVERING OF LOSSThe annual report will be presented to the annual general meetingon 29 April 2004. According to the consolidated balance sheet, thegroup has unrestricted shareholders' equity of SEK 1 M.

FOR THE CONSIDERATION OF THE ANNUALGENERAL MEETING, SEK

Brought forward –3Group contribution received 73 107 150Tax at marginal rate –20 470 002Net loss for the year –52 637 140

5

The board and CEO recommend that the balance of SEK 5 at theparent company be carried forward.

41

KEY FIGURES

SALES AND EARNINGS 2003 2002

Sales SEK M 5 302 5 235Increase % 1 2Sales outside Sweden % 72 72EBITA SEK M 305 325EBIT SEK M 187 211EBT SEK M 92 83Net profit for the year SEK M 26 21

FINANCIAL POSITION

Total assets as per balance sheet SEK M 5 178 5 298Shareholders' equity SEK M 2 210 2 252Equity/assets ratio1) % 43 43Net debt SEK M 1 791 1 931Debt/equity ratio2) times 0.8 0.9Total capital turnover3) times 1.0 1.0Current ratio4) times 1.7 1.8

PROFITABILITY

Return on capital employed5) % 5 5Return on equity6) % 1.2 0.9Operating margin (EBITA)7) % 5.8 6.2Interest coverage ratio8) times 1.9 1.6Value added9) % 29.5 30.0

SHARE DATA

Earnings per share SEK 26.05 21.15

INVESTMENTS

Fixed assets (gross) SEK M 195 176

PERSONNEL

Average number of employees 3 920 3 766of which outside Sweden 2 617 2 400

Payroll expenses incl. payroll overheads SEK M 1 374 1 360Sales per employee SEK 000s 1 352 1 390

Definitions:1) The equity/assets ratio is calculated as shareholders' equity as a percentage of total assets as per the balance sheet.

2) The debt/equity ratio is expressed as net debt - interest-bearing liabilities and interest-bearing provisions less liquid funds - in relation to shareholders' equity.

3) Total capital turnover is calculated as sales divided by average total assets.

4) The current ratio is calculated as total current assets divided by current liabilities.

5) The return on capital employed comprises profit after financial items (EBT) plus interest expenses and exchange differences as a percentage of average capital employed. Capital employed denotes total capital less current non-interest-bearing liabilities. Deferred tax liabilities have also been deducted in accordance with the recommendations of the Swedish Industry and Commerce Stock Exchange Committee.

6) The return on shareholders' equity comprises the net profit for the year as a percentage of average shareholders' equity.

7) The operating margin is calculated as operating profit before goodwill amortisation (EBITA) as a percentage of the year's sales.

8) The interest coverage ratio is calculated as profit after financial items (EBT) plus interest expenses and exchange differences divided by interest expenses and exchange differences.

9) Value added is calculated as the sum of operating profit (EBIT) and payroll expenses including payroll overheads as a percentage of sales.

42

l indab f inancia l report

CONSOLIDATED INCOME STATEMENT

SEK M NOTE 2003 2002

Sales 2 5 302 5 235Cost of goods sold 3 –4 027 –3 931

GROSS PROFIT 1 275 1 304

Selling expenses 3 –626 –645Administration expenses 3 –423 –423Research and development costs 3 –36 –37Other operating income 4 38 62Other operating expenses 4 –41 –50

OPERATING PROFIT 187 211

Interest income 9 14Interest expenses –109 –142Other financial income and expenses 5 0

PROFIT AFTER FINANCIAL ITEMS 92 83

Paid tax 5 –84 –66Deferred tax 5 18 4

NET PROFIT OF THE YEAR 26 21

Earnings per share, SEK 26.05 21.15Proposed dividend, SEK – –Average shares in issue 1 000 000 1 000 000Shares in issue at end of period 1 000 000 1 000 000

43

CONSOLIDATED BALANCE SHEET

ASSETS, SEK M NOTE 2003-12-31 2002-12-31

FIXED ASSETS

Intangible fixed assetsCapitalised development costs etc. 6 11 –Patents and similar rights 6 10 23Goodwill 6 1 991 2 012 2 121 2 144Tangible fixed assetsBuildings and land 7, 8 499 557Machinery and equipment 7 609 684Construction in progress and advance payments on tangible fixed assets 7 72 1 180 43 1 284Financial fixed assetsFinancial investments 9 26 25Other securities held as fixed assets 10 11 9Other long-term receivables 11 35 72 47 81

TOTAL FIXED ASSETS 3 264 3 509

CURRENT ASSETS

Stock etc.Raw materials and consumables 12 397 382Goods in progress 12 32 33Finished goods and goods for resale 12 427 438Advance payments to suppliers 2 858 2 855Current receivablesAccounts receivable 702 670Other receivables 42 41Tax receivables 37 33Prepaid expenses and accrued income 13 55 836 82 826Cash and bank 220 220 108 108

TOTAL CURRENT ASSETS 1 914 1 789

TOTAL ASSETS 5 178 5 298

SHAREHOLDERS’ EQUITY AND LIABILITIES, SEK M

SHAREHOLDERS’ EQUITY

Restricted equityShare capital (1 000 000 shares á SEK 1 par) 1 1Restricted reserves 2 208 2 120Unrestricted equityUnrestricted reserves –25 110Net profit for the year 26 2 210 21 2 252ProvisionsInterest-bearing provisionsPensions and similar obligations 14 61 61 57 57Non-interest-bearing provisionsPensions and similar obligations 14 26 25Deferred tax liabilities 118 144 141 166Long-term liabilitiesInterest-bearing liabilitiesLiabilities to credit institutions 15 1 630 1 689Other liabilities 15 29 1 659 40 1 729Current liabilitiesInterest-bearing liabilitiesLiabilities to credit institutions 15 209 158Overdraft facilities 15 70 95Accrued expenses and deferred income 23 12 291 0 253Non-interest-bearing liabilitiesAdvance payments from customers 14 16Accounts payable 452 494Tax liabilities 15 9Other liabilities 80 68Accrued expenses and deferred income 23 252 813 254 841

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 5 178 5 298

Pledged assets 24 4 047 4 128Contingent liabilities 25 22 19

l indab f inancia l report

44

l indab f inancia l report

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK M SHARE CAPITAL RESTRICTED RESERVES UNRESTRICTED RESERVES TOTAL EQUITY

SHAREHOLDERS’ EQUITY, 31 DEC 2001 1 2 199 32 2 232

Exchange differences –30 20 –10

TOTAL CHANGES IN EQUITY NOT RECOGNISED IN INCOME STATEMENT -30 20 -10

Transfers between restricted and unrestricted equity –58 58Net profit for the year 21 21Option scheme/share premium account 9 9

SHAREHOLDERS’ EQUITY, 31 DEC 2002 1 2 120 131 2 252

Exchange differences –81 13 –68

TOTAL CHANGES IN EQUITY NOT RECOGNISED IN INCOME STATEMENT -81 13 -68

Transfers between restricted and unrestricted equity 169 –169Net profit for the year 26 26

SHAREHOLDERS’ EQUITY, 31 DEC 2003 1 2 208 1 2 210

ACQUISITIONS OF GROUP COMPANIES

SEK M 2003 2002

Assets and liabilities acquiredTangible fixed assets 1 1Financial fixed assets 2 0Stock 6 5Operating receivables 10 12Liquid funds 20 4

TOTAL ASSETS 39 22

Provisions –4 –Operating liabilities –5 –12

TOTAL LIABILITIES AND PROVISIONS –9 –12

Purchase price 30 10Purchase price paid 30 10Less liquid funds at acquired units –20 –4

IMPACT ON LIQUID FUNDS 10 6

45

CONSOLIDATED CASH FLOW STATEMENT

SEK M 2003 2002

Operating activitiesOperating profit 187 211Depreciation and amortisation 285 300Provisions –22 –12Adjustment for other non-cash items 43 48

TOTAL 493 547

Interest received 14 14Interest paid –107 –153Tax paid –81 –78

CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL 319 330

Change in working capitalStock –3 –30Operating receivables –12 4Operating liabilities 91 –186

CASH FLOW FROM OPERATING ACTIVITIES 395 118

Investing activitiesAcquisition of group companies (excl. liquid funds) –10 –6Investment in intangible fixed assets –13 –11Investment in tangible fixed assets –182 –165Reduction/investment in financial fixed assets 11 –11Sale/retirement of tangible fixed assets 82 212

CASH FLOW FROM INVESTING ACTIVITIES –112 19

Financing activitiesNew issues – 9Loans raised – 389Repayment of debt –165 –575

CASH FLOW FROM FINANCING ACTIVITIES –165 –177

Cash flow for the year 118 –40Liquid funds at beginning of year 108 150Translation differences in liquid funds –6 –2

LIQUID FUNDS AT YEAR-END 220 108

l indab f inancia l report

46

l indab f inancia l report

PARENT COMPANY INCOME STATEMENT

SEK M NOTE 2003 2002

Administration expenses 0 0

OPERATING PROFIT 0 0

Interest income 0 0External interest expenses –50 –78Internal interest expenses –23 –13

LOSS AFTER FINANCIAL ITEMS –73 –91

Deferred tax 20 25

NET LOSS FOR THE YEAR –53 –66

PARENT COMPANY BALANCE SHEET

ASSETS, SEK M NOTE 2003-12-31 2002-12-31

FINANCIAL FIXED ASSETS

Shares in group companies 26 3 467 3 467Other long-term receivables 11 8 19

TOTAL FIXED ASSETS 3 475 3 486

CURRENT ASSETS

Other receivables 6 –Cash and bank 0 0

TOTAL CURRENT ASSETS 6 0

TOTAL ASSETS 3 481 3 486

SHAREHOLDERS’ EQUITY AND LIABILITIES, SEK M

SHAREHOLDERS’ EQUITY

Restricted equityShare capital (1 000 000 shares à SEK 1 par) 1 1Share premium account 9 9Statutory reserve 2 199 2 199Unrestricted equityProfit brought forward 53 66Net loss for the year –53 –66

TOTAL SHAREHOLDERS’ EQUITY 2 209 2 209

Long-term liabilitiesLiabilities to credit institutions 15 400 600Liabilities to group companies 662 519

TOTAL LONG-TERM LIABILITIES 1 062 1 119

Current liabilitiesLiabilities to credit institutions 15 200 150Accrued expenses and deferred income 23 10 8

TOTAL CURRENT LIABILITIES 210 158

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 3 481 3 486

Pledged assets 24 3 467 3 467Contingent liabilities 25 – –

47

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

SEK M SHARE CAPITAL RESTRICTED RESERVES UNRESTRICTED RESERVES TOTAL EQUITY

Shareholders’ equity, 31 Dec 2001 1 2 199 –29 2 171Group contribution received 130 130Tax on group contribution at marginal rate –35 –35

TOTAL CHANGES IN EQUITY NOT RECOGNISED IN INCOME STATEMENT 95 95

Net loss for the year –66 –66Option scheme/share premium account 9 9

SHAREHOLDERS’ EQUITY, 31 DEC 2002 1 2 208 0 2 209

Group contribution received 73Tax on group contribution at marginal rate –20

TOTAL CHANGES IN EQUITY NOT RECOGNISED IN INCOME STATEMENT 53 53

Net profit for the year –53 –53

SHAREHOLDERS’ EQUITY, 31 DEC 2003 1 2 208 0 2 209

PARENT COMPANY CASH FLOW STATEMENT

SEK M 2003 2002

Operating profit 0 0Adjustment for other non-cash items – 0

TOTAL 0 0

Interest received – 0Interest paid –71 –98Tax – –10

CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGE IN WORKING CAPITAL –71 –108

Change in working capitalOperating receivables –6 –

CASH FLOW FROM OPERATING ACTIVITIES –77 –

Investing activitiesChange in fixed assets 11 4

CASH FLOW FROM INVESTING ACTIVITIES 11 4

Financing activitiesIncrease in shareholders' equity – 9Loans raised 143 519Repayment of debt –150 –575Group contributions 73 130

CASH FLOW FROM FINANCING ACTIVITIES 66 83

Cash flow for the year 0 –21Liquid funds at beginning of year 0 21

LIQUID FUNDS AT YEAR-END 0 0

l indab f inancia l report

The annual report has been prepared in accordance with theSwedish Annual Accounts Act and the recommendations of theSwedish Financial Accounting Standards Council.

All amounts are stated in millions of SEK unless otherwise spe-cified.

BASIS OF CONSOLIDATIONThe consolidated accounts include the parent company and allgroup companies. Group companies are companies in which theparent company directly or indirectly controls more than 50% of thevotes or has a dominant influence. The number of group compa-nies at the year-end was 56.

The consolidated balance sheet has been prepared using thepurchase method. This means that consolidated shareholders' equ-ity consists of the parent company's equity plus equity at groupcompanies earned after the time of acquisition.

The assets and liabilities of group companies acquired areincluded in the consolidated accounts at market value takingaccount of deferred tax. The difference between the cost of sharesin group companies and the fair value of the net assets acquiredincluding untaxed reserves is reported as goodwill. Any premiumspaid for fixed assets are written down in accordance with the infor-mation on depreciation and amortisation below.

Companies sold during the year are included in the consolida-ted accounts until the time of disposal. Companies acquired duringthe year are included in the consolidated accounts from the time ofacquisition.

The consolidated accounts do not show untaxed reserves andtransfers to/from these reserves; these are divided into deferred taxliabilities reported under non-interest-bearing provisions and restric-ted reserves reported under shareholders' equity on the basis of thetax rate applicable in the country in question.

DEPRECIATION AND AMORTISATIONDepreciation and amortisation are based on historical cost andcharged on a straight-line basis over the useful economic life of theasset.

Machinery, equipment, vehicles and computers are depreciated byhalf the rate specified above in the year of purchase.

TANGIBLE FIXED ASSETSTangible fixed assets are carried at cost less accumulated depre-ciation and writedowns.

LEASESLeases are reported in the consolidated accounts as either financeleases or operating leases. With finance leases, the leased object isincluded as an asset in the balance sheet along with a correspon-ding liability.

The fixed asset is then depreciated over its useful economic life,and lease payments are reported as interest and repayment of theliability. With operating leases, no asset or liability is reported in thebalance sheet, and lease payments are reported in the income statement as expenses.

RESEARCH AND DEVELOPMENT COSTSCosts for research activities undertaken to obtain new scientific ortechnical knowledge are recognised as expense as they arise.

From 1 January 2002 Lindab has applied the Swedish FinancialAccounting Standards Council's Recommendation RR 15 Intangibleassets. In line with this recommendation, where research results areapplied to plan or begin the production of new or significantly impro-ved processes or products, the development costs are capitalised ifthe process or product is technically and commercially feasible. Thecosts that are to be capitalised include material costs, direct labourcosts and a reasonable proportion of indirect costs. Capitaliseddevelopment costs are carried at cost less accumulated amortisa-tion and impairment.

TAXThe income tax reported in the consolidated accounts includes bothcurrent tax and deferred tax. The tax liability or tax receivable for thecurrent year is calculated on the basis of the taxable profit for theperiod. Deferred tax is calculated on the basis of differences be-tween values reported in the balance sheet and written-down valu-es for tax purposes. Deferred tax is tax calculated on the basis oftemporary timing differences that must be paid in the future. Thevaluation of deferred tax is based on anticipated liabilities and recei-vables on the balance sheet date using the tax rates for the indivi-dual companies decided or announced on the balance sheet date.

The tax value of any allowable losses is reported as an assetwhere it is likely that these will result in reduced tax payments in thefuture.

GOODWILLThe acquisition of established companies generally involves a pur-chase price that is higher than the value of their net assets. The mar-ket price is determined above all by expectations of future perfor-mance based on the company's market position and intellectualcapital. An acquisition where the purchase price exceeds the mar-ket value of the net assets results in intangible assets.

Goodwill from acquisitions of group companies is reported as afixed asset and amortised over its estimated useful life. The usefullife of goodwill from acquisitions has been estimated at 10-20 years.This amortisation period reflects the acquisitions' long-term strate-gic value to the group.

The need to recognise impairment losses is reviewed regularlyby calculating discounted future cash flows for the business towhich the goodwill is attributable.

DEPRECIATION AND AMORTISATION ARE CHARGED AT THE FOLLOWING RATES:

%

Patents and similar rights 10–20Goodwill 5–10Buildings 2–4 Land improvements 3.75–5 Machinery and equipment 10Vehicles and computers 20–33Capitalised research and development costs 33

48

l indab f inancia l report

accounting policies

49

TRANSLATION OF FOREIGN GROUP COMPANIES'ACCOUNTSLindab translates the income statements and balance sheets offoreign group companies in accordance with the recommendationof the Swedish Financial Accounting Standards Council. Thismeans that the income statements of independent foreign groupcompanies are translated into SEK using the average rates ofexchange during the year, and that their balance sheets are transla-ted into SEK using the rates of exchange ruling at the year-end.Translation differences are included directly in equity.

RECEIVABLES AND LIABILITIES IN FOREIGN CURRENCIESSwedish group companies' receivables and liabilities in foreign cur-rency are translated using the rates of exchange ruling at the year-end in accordance with the recommendation of the SwedishFinancial Accounting Standards Council. Unrealised exchangegains are offset against unrealised exchange losses, and the netgain/loss is taken to the income statement. Where the rate ofexchange has been hedged through a forward contract, the forwardrate is used. Exchange differences resulting from loans and forwardcontracts taken out to offset net investments in foreign group com-panies are included directly in equity in the consolidated accountsafter deductions for tax effects. Exchange differences relating today-to-day business operations are included in operating profit,while exchange differences of a financial nature are reported underfinancial income and expenses.

STOCKStock is carried at the lower of cost and replacement value in thecase of raw materials, consumables and finished goods bought in,and manufacturing cost in the case of goods produced internally.Under no circumstances is stock carried above net realisable value.Interest is not included in stock values. Supplies of goods betweengroup companies are undertaken at market prices. Internal gains ingroup companies' stock are eliminated in the consolidated

accounts. These eliminations impact on operating profit.Allowances are made for obsolescence.

CASH FLOW STATEMENT The cash flow statement has been prepared using the indirect met-hod. The cash flow reported includes only transactions that involveinward and outward payments.

Liquid funds include short-term financial investments as well ascash and bank deposits.

EXTRAORDINARY INCOME AND EXPENSESIn accordance with the recommendations of the Swedish FinancialAccounting Standards Council, Lindab applies a strict interpretationof what may be reported as extraordinary. Virtually all income andexpenses derive from activities within the framework of the compa-ny's normal business operations, and so no extraordinary itemshave been reported.

INCOME RECOGNITION Income from the sale of goods and services is recognised once anagreement has been reached with the customer, the goods havebeen delivered or the services rendered, and all significant riskshave been transferred to the customer.

Sales are reported net of value-added tax, discounts, returnsand carriage. Intercompany sales are eliminated in the consolidatedaccounts.

BORROWING COSTS Borrowing costs are recognised as expense in the period in whichthey arise, irrespective of how the borrowings are used.

GROUP CONTRIBUTIONS Group contributions are made to minimise the group's tax charge.Group contributions are reported directly in equity after an adjust-ment for the tax element.

THE FOLLOWING EXCHANGE RATES HAVE BEEN APPLIED WHEN TRANSLATING THE INCOME STATEMENTS AND BALANCE SHEETS OF GROUP COMPANIES OUTSIDE SWEDEN

COUNTRY UNIT CURRENCY CODE 2003 2002 2003 2002

Croatia 100 HRK 120.27 123.25 118.54 123.03Czech Republic 100 CZK 28.66 29.76 27.95 29.33Denmark 100 DKK 122.80 123.31 122.15 123.75Estonia 100 EEK 58.32 58.56 58.1 58.75Finland 1 EUR 9.13 9.16 9.09 9.19France 1 EUR 9.13 9.16 9.09 9.19Germany 1 EUR 9.13 9.16 9.09 9.19Hungary 100 HUF 3.60 3.77 3.48 3.90Italy 1 EUR 9.13 9.16 9.09 9.19Latvia 1 LVL 14.26 15.79 13.60 15.02Lithuania 100 LTL 264.31 264.81 263.00 266.00Netherlands 1 EUR 9.13 9.16 9.09 9.19Norway 100 NOK 114.18 122.02 108.05 125.95Poland 100 PLN 207.87 238.27 194.00 230.00Romania 1 000 ROL 0.24 0.29 0.22 0.26Switzerland 100 CHF 600.43 624.49 582.85 632.35UK 1 GBP 13.19 14.58 12.91 14.15USA 1 USD 8.09 9.72 7.28 8.83

AVERAGE RATE JAN-DEC CLOSING RATE

l indab f inancia l report

notes

50

l indab f inancia l report

NOTE 1. EMPLOYEES

The average number of employees at the Swedish group companies has been calculated as the number of working hours paid by the companyrelative to the normal number of working hours in the year, which has been calculated as 1 600 hours (1 600). The average number of employeesat foreign group companies has been calculated as an average over the year. The parent company Lindab Intressenter AB has no employees andhas paid no salaries or other benefits.

2003 2002AVERAGE NUMBER OF EMPLOYEES MEN WOMEN TOTAL MEN WOMEN TOTAL

Group companies, Sweden 1 079 1 079 224 224 1 303 1 303 1 118 1 118 248 248 1 366 1 366Group companies, outside SwedenBelgium 26 3 29 27 2 29Croatia 12 6 18 13 6 19Czech Republic 129 38 167 64 22 86Denmark 553 159 712 573 177 750Estonia 9 2 11 9 2 11Finland 52 11 63 48 10 58France 49 13 62 52 15 67Germany 207 30 237 207 26 233Hungary 371 60 431 249 47 296Italy 17 7 24 17 7 24Latvia 7 1 8 5 1 6Lithuania 4 1 5 2 1 3Netherlands 17 12 29 19 8 27Norway 80 22 102 86 17 103Poland 56 18 74 54 17 71Romania 72 21 93 54 19 73Switzerland 138 19 157 122 14 136UK 124 22 146 126 25 151USA 208 2 131 41 486 249 2 617 221 1 948 36 452 257 2 400

GROUP TOTAL 3 210 710 3 920 3 066 700 3 766

2003 2002

SALARIES AND OTHER BENEFITS, SEK M

Group companies, Sweden 15.0 353.9 368.9 17.2 356.6 373.8Group companies, outside SwedenBelgium 1.0 6.6 7.6 1.3 5.6 6.9Croatia – 1.8 1.8 – 1.7 1.7Czech Republic 0.5 8.7 9.2 0.5 5.8 6.3Denmark 2.4 250.3 252.7 4.6 250.0 254.6Estonia 0.3 1.0 1.3 0.3 1.3 1.6Finland 1.7 18.2 19.9 2.2 16.8 19.0France 1.9 14.5 16.4 1.7 14.6 16.3Germany 1.9 62.1 64.0 2.1 63.8 65.9Hungary 3.7 42.9 46.6 1.7 29.0 30.7Italy 1.4 6.4 7.8 1.4 5.7 7.1Latvia 0.2 0.3 0.5 0.1 0.1 0.2Lithuania 0.2 0.3 0.5 0.1 – 0.1Netherlands 0.5 9.2 9.7 1.8 7.6 9.4Norway 0.6 38.6 39.2 1.4 46.5 47.9Poland 0.9 8.5 9.4 1.0 8.7 9.7Romania 0.7 7.8 8.5 0.5 5.5 6.0Switzerland 2.5 67.9 70.4 3.2 56.4 59.6UK 0.8 35.6 36.4 0.9 39.8 40.7USA 2.0 108.0 110.0 3.9 133.0 136.9

GROUP TOTAL 38.2 1 042.6 1 080.8 45.9 1 048.5 1 094.4

Contractual pensions 10.3 67.9 78.2 14.0 59.7 73.7Other payroll overheads 215.4 192.2TOTAL PAYROLL EXPENSES 1 374.4 1 360.3

BOARD ANDCEO

OTHEREMPLOYEES

TOTALSALARIES AND

BENEFITS

BOARD ANDCEO

OTHEREMPLOYEES

TOTALSALARIES AND

BENEFITS

BOARD FEES

SEK 000S 2003 2002

Svend Holst Nielsen, chairman 300 300Hans-Olov Olsson 150 150Anders C. Karlsson 150 150 Walther Vishof Paulsen 150 150Mats Lönnqvist – –Carl-Gustaf Sondén – –Hans Schmidt-Hansen – –Kjell Åkesson, president and CEO – –

TOTAL FEES TO BOARD MEMBERS 750 750

The employee representatives each received fees of SEK 10000. No fees were paid to deputy members. Board members'holdings of shares and options are presented on page 63.

AUDITORS' FEES AND EXPENSES

GROUP

SEK M 2003 2002

Ernst & Young Auditing 4.9 4.8Other work 1.4 1.0 Other auditors – – Auditing – 0.3

TOTAL 6.3 6.1

PARENT COMPANY

Ernst & YoungAuditing 0.1 0.1

TOTAL 0.1 0.1

51

PRESIDENT AND CEO AND BOARD OF DIRECTORSThe president and CEO and board of directors received salaries andother benefits from the group company Lindab AB.

BOARD OF DIRECTORSTotal board fees of SEK 750 000 (750 000) were paid in accor-dance with the annual general meeting's resolution. No fees werepaid other than those approved at the annual general meeting.

PRESIDENT AND CEOThe president and CEO received a fixed salary of SEK 4 051 000and bonuses of SEK 1 200 000 based on his performance relativeto specific targets.

He also has the use of a company car.The president and CEO is entitled to retire at the age of 60. The

company pays 55% of his basic salary in pension premiums eachyear. If his employment is terminated by the company, he is entit-led to severance pay equivalent to one year's salary with a furtheryear on full salary under a non-competition undertaking.

FORMER CEO AND FORMER DEPUTY CEOThe former CEO and former deputy CEO received their final salarypayments in 2003 but these were charged to the 2002 accounts.Their final pension premiums of SEK 4 377 000 were also paid.

OTHER MEMBERS OF THE GROUP MANAGEMENTBesides the president and CEO, the group management consistsof the CFO and the two business area managers. Excluding thepresident and CEO, the members of the group management werepaid fixed salaries totalling SEK 4 366 000 in 2003. There was novariable element. Their pensions are defined-contribution plansand correspond to ITP levels. Premiums as a percentage of salaryvary according to age. The retirement age for these other membersof the group management is 65.

If their employment is terminated by the company, the othermembers of the group management are entitled to severance payequivalent to one to two years' salary.

The members of the group management are also entitled tothe use of a company car.

None of the members of the group management receive boardfees for sitting on any of the group companies' boards. Their hol-dings of options are presented on page 65.

REMUNERATION COMMITTEEThe remuneration committee comprises chairman of the boardSvend Holst-Nielsen, president and CEO Kjell Åkesson and boardmember Mats Lönnqvist. The committee sets the salaries andother benefits payable to members of the group management andother executives reporting directly to the president and CEO.

INCENTIVE SCHEMEThe annual general meeting on 11 April 2002 resolved to intro-duce an incentive scheme for the board and senior executives. Atotal of 50 people were invited to take part, and 85% took up thisoffer.

The scheme comprised a combination of shares sold byexisting shareholders and options to subscribe for shares in thefuture. The options run from 2002 to 2009. Each option entitles theholder to subscribe for one share at a price of SEK 2 200, with thisprice being adjusted upwards by 8% annually. Altogether thismeans that the board and management hold 4% of the shares inthe company. If the options are exercised in full, this figure will riseto 6.2%.

The incentive scheme did not have any impact on earnings in2003.

ORGANISATIONAL CHANGES IN THE LINDAB GROUP On 1 March 2004 Anders Persson left his position as business areamanager at Profile to become HR director at group level. PeterAndsberg, previously regional manager for Central and EasternEurope, took over as business area manager at Profile on the sameday and will be based in Hungary, which has been Profile's largestgrowth market in recent years.

AUDITORS' FEESThe following is a breakdown of payments of statutory auditingand consulting fees to the group's various auditors. "Other work"denotes primarily advice in accountancy-related areas such asreporting, due diligence and taxation.

l indab f inancia l report

52

l indab f inancia l report

NOTE 2. SEGMENT REPORTING

VENTILATION PROFILE OTHER TOTAL ELIMINATIONS TOTAL

SEK M 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002

External sales 2 965 3 071 2 003 1 859 334 305 5 302 5 235 – – 5 302 5 235Internal sales 93 111 7 4 6 16 106 131 –106 –131 0 0Total sales 3 058 3 182 2 010 1 863 340 321 5 408 5 366 –106 –131 5 302 5 235

EBITA 160 193 155 160 –10 –26 305 325 – – 305 325

EBIT 91 126 107 114 –11 –27 187 211 – – 187 211

Net interest –4 –14 –3 –5 –881) –1091) –95 –128 – – –95 –128

EBT 87 112 104 109 –99 –136 92 83 – – 92 83

1) Relates mostly to the financing of acquisitions

Fixed assets 1 953 2 081 1 287 1 352 70 122 3 310 3 555 –118 –127 3 192 3 428Stock 480 456 321 336 55 61 856 853 – – 856 853Other assets 1 358 1 162 577 435 7 0072) 6 899 8 942 8 496 –7 812 –7 479 1 130 1 017

TOTAL ASSETS 3 791 3 699 2 185 2 123 7 132 7 082 13 108 12 904 –7 930 –7 606 5 178 5 298

Shareholders' equity 2 398 2 378 1 497 1 519 2 754 2 769 6 649 6 666 –4 439 –4 414 2 210 2 252Provisions 16 13 15 15 56 54 87 82 118 141 205 223Other liabilities 1 377 1 308 673 589 4 322 4 259 6 372 6 156 –3 609 –3 333 2 763 2 823

TOTAL SHAREHOLDERS’ EQUITY AND LIABIL. 3 791 3 699 2 185 2 123 7 132 7 082 13 108 12 904 –7 930 –7 606 5 178 5 298

Investment in fixed assets (gross) 125 118 61 52 9 6 195 176 – – 195 176Depreciation and amortisation 172 182 94 94 19 24 285 300 – – 285 300

GEOGRAPHICAL BREAKDOWN OF SALES BY SEGMENT

Nordic region 1 422 1 478 1 040 1 041 318 303 2 780 2 822 – – 2 780 2 822Western Europe 1 077 1 111 158 142 – – 1 235 1 253 – – 1 235 1 253Central and Eastern Europe 145 114 805 668 5 2 955 784 – – 955 784USA 306 333 – – – – 306 333 – – 306 333Other markets 15 35 0 8 11 – 26 43 – – 26 43

TOTAL 2 965 3 071 2 003 1 859 334 305 5 302 5 235 – – 5 302 5 235

2) Relates mostly to amounts payable/receivable by Lindab AB to/from group companies, and to Lindab Intressenter AB's shares in group companies.

GEOGRAPHICAL BREAKDOWN

2003 2002 2003 2002

Nordic region 3 125 3 215 84 76Western Europe 784 836 18 50Central and Eastern Europe 972 901 91 48USA 297 346 2 2

TOTAL 5 178 5 298 195 176

The Ventilation business area comprises the group's business in ventilation and indoor climate systems. The Profile business area consists of thegroup's business in products and product systems for the construction sector. Other business comprises the parent company, steel services andsteel processing for external customers. Intersegment pricing is determined on an arm's-length basis, i.e. between parties which are independentof each other, are well informed and have an interest in the transaction being executed. Assets and investments are reported where the asset is tobe found.

TOTAL ASSETS TOTAL INVESTMENTS

NOTE 5. TAX - YEAR'S TAX CHARGE

GROUP PARENT

COMPANY

SEK M 2003 2002 2003 2002

Current tax, current period –84 –66 – –

TOTAL CURRENT TAX –84 –66 – –

Year's temporary differences 18 4 20 25

TOTAL REPORTED TAX CHARGE –66 –62 20 25

The year's tax charge was 66 (62) or 71.9% (74.6) of profit after finan-cial items. Adjusted for goodwill amortisation of 118 (114) this figurefalls to 31.4% (31.5). The standard tax rate in Sweden is 28%.

GROUP

2003 % 2002 %

Profit before tax 92 83Weighted tax rate based on tax rate in each country –23 –25.2 –22 –26.3

RECONCILIATION WITH REPORTED TAX RATE

Non-allowable goodwill amortisation –32 –35.0 –32 –38.6Tax losses not offset –10 –10.9 –16 –19.3Non-taxable income from sale of subsidiary 4 4.6 – –Adjustments for previous years – – 4 4.8Other items, net –5 –5.4 4 4.8

REPORTED TAX CHARGE –66 –71.9 –62 –74.6NOTE 4. OTHER OPERATING INCOME AND EXPENSES

GROUP

SEK M 2003 2002

Exchange differences in operating receivables 23 36Capital gains on sale of properties – 26Capital gains on sale of group companies 15 –Exchange differences in operating liabilities –27 –34 Restructuring costs –14 – Capital losses on sale of properties – –16

NET –3 12

NOTE 3. DEPRECIATION AND AMORTISATION

GROUP

SEK M 2003 2002

Capitalised development costs 2 0Patents 8 7Goodwill 118 114 Properties 21 26 Machinery and other technical facilities 97 109Equipment, tools and installations 39 44

TOTAL 285 300

TOTAL DEPRECIATION AND AMORTISATION BY ITEM

Cost of goods sold 223 238Selling expenses 24 23Administration expenses 37 39Research and development costs 1 0

TOTAL 285 300

GOODWILL AMORTISATION BY ITEM

Cost of goods sold 116 113Selling expenses 2 1

TOTAL 118 114

53

l indab f inancia l report

54

l indab f inancia l report

NOTE 5 CONT. TAX - DEFERRED TAX RECEIVABLES/LIABILITIES

DEFERRED DEFERRED NET

SEK M TAX RECEIVABLES TAX LIABILITIES

Intangible fixed assets 2 –1 1Tangible fixed assets 3 –134 –131Financial fixed assets 0 0 0Stock 9 –2 7Receivables 1 0 1Provisions 8 0 8Interest-bearing liabilities 0 0 0Non-interest-bearing liabilities 1 0 1Leasing 36 0 36Other 3 –59 –56Tax losses 15 0 15

TOTAL 78 –196 –118

Offset between companies –78 78 0

The provisions under "Other" consist primarily of Swedish tax allocation reserves and similar untaxed reserves with no links to assets or liabilities.

RECONCILIATION OF NET DEFERRED TAX LIABILITIES AT THE BEGINNING AND END OF THE YEAR:

Net deferred tax liabilities on 1 Jan 2003 –141Recognised in income statement 18Other 5

TOTAL –118

Deferred tax receivables relating to tax losses of 220 have not been recognised as it is not currently considered likely that Lindab will be able to offset them in the foreseeable future.

NOTE 6. INTANGIBLE FIXED ASSETS

CAPITALISED PATENTS GOODWILL TOTAL

DEVELOPMENT COSTS ETC.SEK M ETC.

COST

Opening balance 0 87 2 443 2 530Additions 4 4 5 13Disposals and retirements 0 –3 –18 –21Reclassifications 10 –8 0 2Year's translation differences 0 –1 0 –1

CLOSING BALANCE 14 79 2 430 2 523

ACCUMULATED AMORTISATION

Opening balance 0 –64 –322 –386Year's amortisation –2 –8 –118 –128Disposals and retirements 0 2 1 3Reclassifications –1 1 0 0Year's translation differences 0 0 0 0

CLOSING BALANCE –3 –69 –439 –511

Net book value at end of year 11 10 1 991 2 012Net book value at beginning of year 0 23 2 121 2 144

The capitalised developments costs etc. reported have mainly been generated internally.

NOTE 8. PROPERTY VALUES FOR TAX PURPOSES

GROUP

PROPERTIES 2003 2002

Buildings 9 22Land 1 6

TOTAL 10 28

These property values for tax purposes relate exclusively to Swedishgroup companies' property holdings. The book value of these pro-perties is 18 (26).

55

NOTE 7. TANGIBLE FIXED ASSETS

BUILDINGS MACHINERY AND EQUIPMENT, CONSTRUCTION CONSTRUCTION TOTAL

AND LAND OTHER TECHNICAL TOOLS AND IN PROGRESS, IN PROGRESS,FACILITIES INSTALLATIONS BUILDINGS MACHINERY

GROUP 2003 2003 2003 2003 2003 2003

COST

Opening balance 679 1 306 386 12 31 2 414Additions 12 72 39 10 48 181Acquisitions – 1 – – – 1Disposals and retirements –23 –50 –23 –10 –3 –109Reclassifications 3 10 2 –3 –13 –1Year's translation differences –36 –55 –12 0 0 –103

CLOSING BALANCE 635 1 284 392 9 63 2 383

ACCUMULATED DEPRECIATION

Opening balance –122 –776 –232 0 0 –1 130Year's depreciation –21 –97 –39 0 0 –157Disposals and retirements 5 23 17 0 0 45Reclassifications 0 2 –2 0 0 0Year's translation differences 5 31 6 0 0 42

CLOSING BALANCE –133 –817 –250 0 0 –1 200

ACCUMULATED WRITEDOWNS

Opening balance 0 0 0 0 0 0Year's writedowns –3 0 0 0 0 –3Year's translation differences 0 0 0 0 0 0

CLOSING BALANCE –3 0 0 0 0 –3

NET BOOK VALUE AT END OF YEAR 499 467 142 9 63 1 180

NET BOOK VALUE AT BEGINNING OF YEAR 557 530 154 12 31 1 284

leases amount to 31 and break down as follows

(variable element is not material): GROUP

NOMINAL VALUE (PRESENT VALUE) 2003 2002

2004 2 (2) 2 (2)2005 – 2008 7 (6) 8 (6)2009 and beyond 22 (17) 24 (18)

TOTAL 31 (25) 34 (26)

l indab f inancia l report

NOTE 9. FINANCIAL INVESTMENTS IN ENDOWMENT POLICIES

GROUP

2003 2002

Opening balance 25 18Paid in 4 7Paid out –3 –

TOTAL 26 25

OPERATING LEASESLease payments for assets held under operating leases, such asrented premises, machinery and office equipment, are reportedunder operating expenses and amounted to 44 (38). Future pay-ments under non-cancellable operating leases total 366 and fall dueas follows

(variable element is not material):

2004 532005 – 2008 1602009 and beyond 153

TOTAL 366

Companies in the group have contractual options to buy back pro-perties sold to sale-leaseback companies. The lease payments forthese properties amounted to 24 (15). If buyback options were exer-cised for all of the properties, this would reduce the equity/assetsratio from its current 43% to 40%.

The group has finance leases dating from before 1997 with avalue of 370. These are reported as operating leases in accordancewith the Swedish Financial Accounting Standards Councils'Recommendation RR6:99.

In December 2003 agreement was reached on an operatinglease for the financing of the new production plant in the CzechRepublic. The lease will run for ten years and have a value of EUR16.7 M. The lease will be entered into in 2004 and trigger annuallease payments of 10.

FINANCE LEASESFinance leases are included in the balance sheet under buildingsand machinery at 22 (25), of which properties account for 21 (21).The cost of these leases was 2 (2). Future obligations under finance

56

l indab

NOTE 14. PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS

PRI OTHER TOTAL

As per balance sheet on 31 Dec 2002 33 49 82Additional provisions 5 6 11Paid out –1 –5 –6

AS PER BALANCE SHEET ON31 DEC 2003 37 50 87

Of the group's total pension liabilities of 87, 42.1 relates to the CEOand the former CEO and former deputy CEO. These pension liabili-ties are the actuarially calculated value of statutory and voluntarypension obligations. Interest has been calculated using actuarialnorms. The interest element amounts to 3.

NOTE 13. PREPAID EXPENSES AND ACCRUED INCOME

GROUP

2003 2002

Prepaid rental and lease payments 11 13Prepaid interest 6 6Insurance premiums 7 4Other prepaid expenses 18 53Accrued bonus income 13 6

TOTAL 55 82

There were no prepaid expenses and accrued income at the parentcompany.

NOTE 12. STOCK

GROUP

2003 2002

Raw materials and consumables 397 382Goods in progress 32 33Finished goods and goods for resale 427 438

TOTAL 856 853

Internal gains reduced stock by 17 (20).

f inancia l report

NOTE 11. OTHER LONG-TERM RECEIVABLES

GROUP 2003 2003OPERATING TAX OTHER TOTAL OTHER

RECEIVABLES RECEIVABLES RECEIVABLES RECEIVABLES

As per balance sheet on 31 Dec 2002 8 17 22 47 19Additions 4 – – 4 –Receipts –2 – –11 –13 –11Translation differences – –3 – –3 –

AS PER BALANCE SHEET ON 31 DEC 2003 10 14 11 35 8

NOTE 10. SECURITIES HELD AS FIXED ASSETS

GROUP

2003 2002

Cost at beginning of year 9 8Acquisitions and investments 2 1

BOOK VALUE 11 9

PARENT COMPANY

57

NOTE 15. THE GROUP'S LONG-TERM DEBT INCLUDING CURRENT PORTION BY CURRENCY

FOREIGN GROUP COMPANIES SWEDISH GROUP COMPANIES GROUP TOTAL TOTAL UNUSED

AMOUNT IN CURR- AMOUNT AMOUNT IN CURR- AMOUNT AMOUNT IN CURR- AMOUNT CREDIT CREDIT

ENCY IN MILLIONS IN SEK M ENCY IN MILLIONS IN SEK M ENCY IN MILLIONS IN SEK M SEK M SEK M

SEK – – 1 231 1 231 1 231 1 231 2 033 802CHF 2 11 – – 2 11 28 17CZK – – 25 7 25 7 7 0DKK 155 189 300 367 455 556 797 241EUR 4 36 – – 4 36 91 55GBP 1 11 – – 1 11 13 2HUF 19 1 – – 19 1 1 0NOK 3 3 9 10 12 13 25 12PLN 1 3 – – 1 3 19 16USD – – 10 69 10 69 74 5

TOTAL 254 1 684 1 938 3 088 1 150

NOTE 16. FINANCIAL RISKS AND RISK MANAGEMENTLindab has operations in 26 countries and its own production faci-lities in 18 of these. Lindab's products are sold in around 50 coun-tries worldwide. External sales amounted to 5 302 (5 235) in 2003,of which 72% (72) outside Sweden.

Trade between group companies is extensive and amounted to2 309 (2 099) in 2003, of which 1 400 was cross-border trade.

This means that a substantial proportion of the group's assets,liabilities, income and expenses is denominated in foreign currencies.

Lindab's international orientation means that it is exposed to anumber of risks, including:

• financing risk• interest rate risk• foreign exchange risk• credit risk• supplier risk

NOTE 17. FINANCING RISKFinancing risk is the risk of the financing of the group's capitalneeds and the refinancing of outstanding credit becoming moredifficult or more expensive. The group had unused credit facilities of1 150 at the year-end.

The group's interest-bearing liabilities and provisions amountedto 2 011 (2 039) at the year-end, of which 707 (761) was denomina-ted in foreign currencies. Net debt - interest-bearing liabilities andprovisions less liquid funds - totalled 1 791 (1 931).

In line with Lindab's financial policy, the bulk of these loans arefinanced with fixed-interest periods averaging 1-12 months. Thedue dates for the various loans are planned so as to even out thematurity structure over time.

Besides the 1 938 (1 982) reported above, there were interest bea-ring pension liabilities of 61 (57) and accrued expenses of 12 (0).Total interest-bearing liabilities therefore amounted to 2 011 (2 039).The bulk of the long-term financial liabilities have a fixed-interestperiod of 1-12 months which is continuously extended. The parentcompany's share was SEK 400 (600) for long-term liabilities andSEK 200 (150) for the current portion. The group had unused creditfacilities of 1 150. The parent company had no unused credit facili-ties.

Borrowings are due to be repaid as follows:

GROUP PARENT

COMPANY

2004 205 2002005 205 2002006 205 2002007 – 2012 25 –

TOTAL 640 600

Of the total credit available of 3 088, around 1 800 is agreed inwriting. Committed credit, unlike uncommitted credit, involves a for-malised undertaking by the lender.

The parent company has no unused credit.The following notes describe how risks are managed to reduce

their impact on the consolidated income statement and balancesheet.

l indab f inancia l report

NOTE 18. INTEREST RATE RISKInterest rate risk is the risk of a change in interest rates having anegative impact on the group.

Lindab is a net borrower, which means that rising interest rateshave a negative impact on the group.

Any spare liquidity must in the first instance be used to repayloans and in the second instance be invested in the Swedish day-to-day loan market.

The group had liquid funds of 220 at the year-end, of which 0at the parent company.

A one percentage point rise in interest rates, including theimpact on rental and lease payments, will increase the group'sexpenses by around 24, breaking down into additional rental andlease payments of 6 and additional interest expenses of 18.

58

l indab

EXCHANGE RATE MOVEMENTS, SEK

6

7

8

9

10

11

20032002200120001999199819971996

SEK/EUR SEK/USD

f inancia l report

NOTE 19. FOREIGN EXCHANGE RISK

Foreign exchange risk is divided into two categories depending onhow the exposure arises.

Transaction riskTransaction risk arises from trading between group companies,suppliers and customers if payment is in a currency other than thegroup company's local currency. Lindab's net exposure (the diffe-rence between inflows and outflows of currency) translated intoSEK is around 250 each year. Of the outstanding transaction expo-sure at the year-end, 30 was hedged.

To reduce outstanding foreign exchange exposure, the groupaims to match inflows of currency by purchasing raw materials inthe same currency.

In line with Lindab's financial policy, each individual group com-pany is responsible for transaction exposure in its business, withany hedging of currency flows being undertaken with Lindab AB ascounterparty.

Translation exposureTranslation exposure arises when the net assets of foreign groupcompanies are translated into SEK. In line with Lindab's financialpolicy, these net assets were not hedged in 2003.

The strength of SEK against other currencies therefore impactson Lindab's earnings and financial position. A comparison of ave-rage exchange rates in 2003 with those in 2002 for the currenciesin which the Lindab group invoices reveals that the appreciation ofthe SEK reduced sales growth by three percentage points.

SENSITIVITY ANALYSIS

CHANGE % IMPACT ON

EARNINGS, SEK M

Sheet steel prices 2 25Payroll expenses 2 27Operating margin 2 106Interest rates 2 48

NOTE 20. CREDIT RISKLindab's customers are predominantly ventilation contractors,sheet metal workers, construction companies and builders' mer-chants. Exposure to individual customers is relatively limited. Thesingle largest customer accounted for around 1.6% of sales.

Bad debts amounted to 10 (20) in 2003. Credit insurance hasbeen taken out by some group companies outside Sweden.

NOTE 21. SUPPLIER RISKThe group's manufacturing units are primarily dependent on sour-cing sheet steel raw material of the right quantity and quality at theright time. If the group is unable to source deliveries of raw mate-rials which meet the set requirements, or if the cost of raw mate-rials increases significantly, this will impact negatively on the grou-p's operating results. Some units may sometimes be reliant on alimited number of suppliers of sheet steel on account of availability,geographical location, price, quality etc. From time to time sup-pliers may extend lead times, limit supplies or increase prices, e.g.as a result of restricted capacity. The group aims to reduce sup-plier risks by working closely with the steelworks and by signinglong-term contracts.

NOTE 22. INTERNAL BANKAn international group of Lindab's size stands to benefit greatlyfrom central management of matters relating to financing and finan-cial exposure.

The role of the internal bank is to support the subsidiaries withloans, investment opportunities and foreign exchange transactions,and to act as an adviser on financial issues.

Forward contracts are used regularly to manage financial risks.It is important to note that Lindab's internal banking operations arenot run with the aim of making a profit. Instead the goal is to re-duce the financial risks to which the company is exposed in thecourse of its normal business, and to ensure that Lindab can meetall normal liquidity needs during the year.

NOTE 23. ACCRUED EXPENSES AND DEFERRED INCOME

GROUP PARENT

COMPANY

2003 2002 2003 2002

Salaries and holiday pay 107 113 – –Share of profits 6 7 – –Other payroll overheads 34 37 – –Bonuses to customers 40 37 – –Valuation of forward contracts 3 – – –Interest expenses 15 13 10 8Other expenses 59 47 – –

TOTAL 264 254 10 8

NOTE 27. RELATED PARTY TRANSACTIONS

The parent company has had no transactions and has no balanceswith related parties. Other than the board fees set by the generalmeeting and payments under agreements with the group manage-ment as disclosed in Note 1, there are no transactions or balanceswith related parties.

NOTE 26. SHARES IN GROUP COMPANIES

Shares held in Lindab AB.

REG. NO. REG. PERCEN- NO. OF CURR- BOOK

OFFICE TAGE SHARES ENCY VALUE

HOLDING CODE SEK 000S

556068-2022 Båstad 98.3 23 582 857 SEK 3 466 736

The remaining 417 143 shares are treasury shares from buybacks.

59

NOTE 25. CONTINGENT LIABILITIES

GROUP PARENT

COMPANY

2003 2002 2003 2002

Other guarantees and sureties 10 18 – –Pension obligations 2 1 – –Ongoing tax hearing 10 – – –

TOTAL 22 19 – –

Lindab AB has undertaken to assume responsibility for pension obli-gations that may be imposed on group companies.

NOTE 24. PLEDGED ASSETS

GROUP PARENT

COMPANY

2003 2002 2003 2002

Property mortgages 131 145 – –Floating charges 303 313 – –Shares in Lindab AB 3 613 3 670 3 467 3 467

TOTAL 4 047 4 128 3 467 3 467

All pledged assets are as security for liabilities to credit institutions.

NOTE 28. PARENT COMPANYLindab Intressenter AB's business is to develop, manufacture andsell sheet metal products and building systems for the ventilationindustry and the construction sector directly or indirectly via groupcompanies.

The company has its registered office in the Swedish munici-pality of Båstad.

Address: Lindab Intressenter AB, 269 82 Båstad, Sweden.

Båstad, 23 April 2004

Svend Holst-Nielsen

Chairman

Mats Lönnqvist

Hans-Olov Olsson

Walther Vishof Paulsen

Anders C. Karlsson

Hans Schmidt-Hansen

Carl-Gustaf Sondén

Kjell Åkesson

CEO

l indab f inancia l report

Our audit report was submitted on 23 April 2004.

Ingvar Ganestam Staffan Landén

Authorised public accountant Authorised public accountant

60

l indab auditor 's report

auditor's report

To the annual general meeting of Lindab Intressenter AB,

reg. no. 556606-5446.

We have audited the annual accounts, the consolidated accounts,the accounting records and the administration of the board ofdirectors and the CEO of Lindab Intressenter AB for the year 2003.

These accounts and the administration of the company are theresponsibility of the board of directors and the CEO. Our responsi-bility is to express an opinion on the annual accounts, the consoli-dated accounts and the administration based on our audit.

We conducted our audit in accordance with generally accep-ted auditing standards in Sweden. Those standards require that weplan and perform the audit to obtain reasonable assurance that theannual accounts and the consolidated accounts are free of materi-al misstatement. An audit includes examining, on a test basis, evi-dence supporting the amounts and disclosures in the accounts. Anaudit also includes assessing the accounting principles used andtheir application by the board of directors and the CEO, as well asevaluating the overall presentation of information in the annualaccounts and the consolidated accounts. As a basis for our opi-nion concerning discharge from liability, we examined significantdecisions, actions taken and circumstances of the company inorder to be able to determine the liability, if any, to the company ofany board member or the CEO. We also examined whether any

board member or the CEO has, in any other way, acted in contra-vention of the Companies Act, the Annual Accounts Act or the arti-cles of association. We believe that our audit provides a reasona-ble basis for our opinion set out below.

The annual accounts and the consolidated accounts havebeen prepared in accordance with the Annual Accounts Act andthereby give a true and fair view of the company's and the group'sfinancial position and results of operations in accordance withgenerally accepted accounting principles in Sweden.

We recommend to the general meeting that the income state-ments and balance sheets of the parent company and the group beadopted, that the loss of the parent company be dealt with inaccordance with the proposal in the administration report, and thatthe members of the board of directors and the CEO be dischargedfrom liability for the financial year.

Båstad, 23 April 2004

Ernst & Young AB

Ingvar Ganestam Staffan Landén

Authorised public accountant Authorised public accountant

61

board of directors

62

l indab board of d i rectors

Svend Holst-NielsenBorn in 1940

Elected to the board in 1995.Chairman of Lindab AB since 1998.Chairman of SReg AB, Unilever AB(previously CEO and Nordic manager),HemoCue AB, Spendrup AB, DometicAB and Southern Sweden Chamberof Industry and Commerce. Boardmember of Ballingslöv InternationalAB, Wallgrund AB, Besthand AB andLund University.Holdings in Lindab Intressenter AB:240 shares1 200 options

63

Carl-Gustaf SondénBorn in 1945

Elected to the board in 1983.Chairman of Nolato AB och SkåneMarin AB. Board member of N.P.Nilssons Trävaru AB andNorthwestern Skåne EnterpriseAgency.Holdings in Lindab Intressenter AB:17 940 shares0 options

Hans-Schmidt HansenBorn in 1943

Elected to the board in 1986. CEO ofAgena A/S. Chairman of BJ-Gear A/S, UnionEngineering A/S, Vest-wood A/S andH & M Maskiner A/S. Board memberof Agena A/S, Ove Arkil A/S and FLO-NIDAN DC. Holdings in Lindab Intressenter AB: 17 940 shares0 options

Anders C. KarlssonBorn in 1950

Elected to the board in 2001.Executive chairman of IPEG AB.Chairman of Rapid GranulatorAB and Ludesi AB. Board mem-ber of Air Liquide Gas AB,Elitfönster AB and Bona Kemi ABAdvisory Board.Holdings in Lindab IntressenterAB:80 shares400 options

Urmas KruusvalBorn in 1951

Elected to board as deputy memberin 2001. Head of AP Direktinveste-ringar. Chairman of AB Volvofinans andTidningskompaniet AB. Holdings in Lindab Intressenter AB:0 shares 0 options

Walther Vishof PaulsenBorn in 1949

Elected to the board in 2001. MD.Chairman of Dantherm Holding A/S,Hotel Kolding Fjord A/S, ÖkoinvestA/S and Frydenholm A/S. Deputychairman of VPG Holding A/S, VitalPetfood Group A/S, Dan-EjendommeHolding A/S, Dan-Ejendomme A/Sand Dan-Ejendomsinvestering A/S.Board member of Sanistål A/S,Thrige-Titan A/S, Danske InvestAdministration A/S, Royal ScandinaviaA/S, C.W. Obel Ejendomme A/S, C.W.Obel Projekt A/S and Den ObelskeFamiliefond. Holdings in Lindab Intressenter AB:20 shares100 options

Hans-Olov OlssonBorn in 1941

Elected to the board in 2001. CEO ofVolvo Personvagnar AB. Board member of the Association ofSwedish Engineering Industries inStockholm, West Sweden's Chamberof Industry and Commerce inGothenburg, Swedish-AmericanChamber of Commerce in New York,and Premier Automotive Group inLondon. Holdings in Lindab Intressenter AB: 80 shares400 options

Mats LönnqvistBorn in 1954

Elected to the board in 2001. Seniorinvestment manager at Ratos AB.Board member of Bluegarden, Camfil,DIAB, Dynal Biotech, Bordsjö Skogar,Telge Energi Försäljning, Telge EnergiNät and Fastighets AB Tornet.Holdings in Lindab Intressenter AB:0 shares0 options

Per FranklingBorn in 1971

Elected to board as deputy memberin 2001. Investment manager at Ratos AB.Board member of Fastighets ABTornet, Bluegarden AS and Q-Labs. Holdings in Lindab Intressenter AB:0 shares0 options

Niklas JohanssonBorn in 1961

Elected to board as deputy memberin 2003. Portfolio manager at Livförsäkringsak-tiebolaget Skandia. Board member of Overseas TelecomAB, CashCap and CreandumAdvisers AB.Holdings in Lindab Intressenter AB:0 shares0 options

Pontus AnderssonBorn in 1966

Elected to the board in 1995.Employee representative (SIF). Holdings in Lindab Intressenter AB:0 shares0 options

Markku RantalaBorn in 1952

Elected to the board in 1998.Employee representative (LO).Holdings in Lindab Intressenter AB:0 shares0 options

1 • Kjell Åkesson2 • Svend Holst-Nielsen3 • Mats Lönnqvist4 • Hans-Schmidt Hansen5 • Walther Vishof Paulsen6 • Per Frankling7 • Pontus Andersson8 • Markku Rantala9 • Anders C. Karlsson

10 • Niklas Johansson11 • Carl-Gustaf Sondén12 • Urmas Kruusval

• Hans-Olov Olsson, not pictured.

12

12

3

546

7

8

9

11

10

Kjell ÅkessonBorn in 1949

President and CEO. Employed since 2003.Elected to the board in 2003.Holdings in Lindab Intressenter AB:960 shares4 800 options

group management

64

l indab group management

Kjell ÅkessonBorn in 1949

President and CEO. Employed since2003.Holdings in Lindab Intressenter AB:960 shares4 800 options

65

Nils-Johan AnderssonBorn in 1962

CFO. Employed since 1999.Holdings in Lindab Intressenter AB:320 shares1 600 options

Johan BergkvistBorn in 1953

Business area manager - VentilationEurope. Employed since 1985.Holdings in Lindab Intressenter AB:320 shares1 600 options

Peter AndsbergBorn in 1966

Business area manager - Profile.Employed since 1990. Holdings in Lindab Intressenter AB:320 shares1 600 options

Peter Andsberg took up this post on 1March 2004.

1 • Kjell Åkesson2 • Nils-Johan Andersson3 • Johan Bergkvist4 • Peter Andsberg

1 234

66

Duct system The products - ducts, couplings, bends, dampers etc. - with which all types of ventilation ducting can be built.

– circular Duct system based on circular ducts and fittings which, thanks to its circular design, provides greater scope for building airtight, economical and functional ventilation systems. Consists of mass-produced products often equipped with rubber seals to ensure rapid assembly and energy-efficient operation.

– rectangular Duct system based on rectangular ducts and fittings. Normally consists of hand-made products produced in shortruns or as one-offs. Made airtight manually during assembly and has less favourable airflow and acoustic proper-ties than the more "natural" circular duct system.

Technical products Grilles, diffusers and valves whose function is to distribute air into a room in the desired quantity and direction.

Indoor climate products Technical products which heat and/or cool a room or building, so impacting on the indoor climate.

Chilled beam,supply-air beam Products which use hot or cold water to heat or cool a room by convection.

Facade system Product housing several different systems - heating, cooling, ventilation etc. - in one and the same unit. Often fitted beneath the windows in a room.

Building system Building kit which, in its basic form, consists of a steel frame with purlins, wall studs, sheeting and fasteners, and is supplied to the customer as a complete ready-to-assemble system solution.

Building Individual products for use in construction projects, such as roof drainage products, wall studs and sheeting for components cladding walls and roofs.

Moisture-free Construction using materials and products which lack the ability to absorb any moisture or water, so preventingconstruction moisture from being trapped in roofs, walls and joist floors. Steel wall studs and light-gauge purlins are

examples of this type of product.

High-build polyester- A relatively new, environmentally friendly and easily worked grade of sheet steel available in a wide range of colours. coated steel Highly resistant to corrosion.

Specification The process carried out by a consultant, designer, engineer or architect at an early stage in the construction pro-cess to specify which products are to be used in the eventual solution. The selection of products is based on the unique needs of each project and must meet the resulting requirements for function, aesthetics or economy.

Production The specifications, drawings and other documentation which describe the construction project and provide a basisdocumentation for tendering and ordering.

Bill of materials A list stating the type, number, dimensions etc. of all products included in a project, such as a duct system or buil-ding system.

Estimation The process of using drawings and other documentation to work out the total number of products required, bro-ken down by type, dimensions, product variant etc. Performed manually, this is a time-consuming and complex process. Lindab's various product selection software packages, such as CADvent, perform this work automatical-ly by generating a bill of materials.

Ventilation business area

technical glossary

Profile business area Lindab as a whole

l indab technical g lossary

67

© 2004 Lindab AB. All forms of reprinting, reproduction and copying prohibited is a registered trademark of Lindab AB. Other product groups and product names

mentioned in this document may also be trademarks of Lindab AB. Lindab AB reserves the right to amend the contents of this document.

Production: Repetera AB and Lindab AB. Photos: Johan Sundström, Carl Lindhe et al. Print: Ljungbergs Tryckeri AB. Paper: Magno Satin, Translation: Euronomen AB.

sättningrafik log

this is Lindab

Lindab is an international group which deve-

lops, manufactures and markets sheet metal

products and system solutions in the

Ventilation and Profile business areas.

The Ventilation business area focuses on the

ventilation industry, offering everything from

ventilation components to complete indoor

climate solutions.

The Profile business area focuses on the con-

struction industry, offering an extensive range

of building components and complete steel

building systems for both residential and

commercial properties.

www.lindab.com – for more information

Lindab's website is home to a wealth of infor-

mation about the group, and also provides

contact details for our various companies

around the world. Visit www.lindab.com to

find out more.

financial reports 2004

Interim report January-March 12 May

Interim report January-June 25 August

Interim report January-September 12 November

Lindab Intressenter ABSE-269 82 BåstadSwedenTel: +46 431 850 00Fax: +46 431 850 10E-mail: lindab@lindab.comWebsite: www.lindab.comRegistered in Båstad, SwedenReg. no. 556606-5446